MIRA INFORM
REPORT
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Report
Date : |
14.08.2007 |
IDENTIFICATION DETAILS
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Name : |
KUDREMUKH IRON ORE COMPANY LIMITED |
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Registered
Office : |
II Block, Koramangala, |
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Country: |
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Date
of Incorporation : |
02.04.1976 |
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Financials
as on: |
31.03.2006 |
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CIN
No.: |
U13100KA1976PLC002974 |
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Com.
Reg. No.: |
2974 |
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TAN
No.: [Tax
Deduction & Collection Account No.] |
BLRK04095A |
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Legal
Form : |
Closely
Held Public Limited Liability Company. The
company’s entire share capital is held by Government of India. |
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Line
of Business : |
Mining and Beneficiation of |
RATING & COMMENTS
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MIRA’s
Rating : |
Ba |
RATING
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STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet
normal commitments. |
Satisfactory |
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Maximum
Credit Limit : |
USD
82000000 |
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Status
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Satisfactory
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Payment
Behaviour : |
Usually
Correct |
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Litigation
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Clear |
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Comments
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Subject
is a wholly owned Government of India enterprise located in the The
Company is making appreciable progress in its turnover and profits. Its trade
relations are fair. Payments are usually correct and as per commitments. The
Company can be considered good for business dealings at usual trade terms and
conditions. |
LOCATIONS
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Registered
Office : |
II Block, Koramangala, |
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Tel.
No.: |
91-80-25531461
To 70 (10 Lines)/25535937 |
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Fax
No.: |
91-80-2553
2153/2553 5941/25630984 |
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E-Mail
: |
1.
kioclcom@vsnl.com 2.
kioclpur@bgl.vsnl.net.in |
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Website
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Resident
Representatives : |
Mr. J. C.
Bahl, Senior Manager (C) KIOCL,
Himalaya House, K G Marg, Tel. No. 91-11-2331 5686 / 5665 (Office) 91-11-2725 8887 (Res.) |
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Guest
House : |
·
Sahyadri Bhavan, Kudremukh – 577 142, Chickmagalur, District Contact Person: Mr. K. V. Verghese, Senior Manager (Admn.) Tel. No. 54148
(Office) / 54184 (Res.) ·
Kudremukh Guest House, Contact Person: Mr. Keshav Derebail, Senior Manager
(Admn.) Tel. No. 91-824-407616
(Office) / 481555 (Res.) ·
Kudremukh Guest House, 517, 15th Main III Block,
Koramanagala, Contact Person: Mr. P. Vijayan, Deputy Manager (A) Tel. No. 91-80-553
1998 (Office) / 553 1289 (Res.) |
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Branches
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Located
at :- ·
New Tel. No. 91-824-2407916/17/18/19/407910 Fax No. 91-824-2407422 Telex – 0845-2505 ·
Himalaya House, 9th Floor, Kasturba Gandhi Marg, Tel. No. 91-11-23315665/23315686 Fax No. 91-11-23721696 Telex – 231-66881 ·
6, Tel. No. 91-44-28586738/28548277/28520450 Fax No. 91-44-28520450 Telex - 041-8733 ·
Kudremukh, Chikmagalur – 577 142, Karnataka |
DIRECTORS
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Name : |
Mr. P.
Ganesan |
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Designation
: |
Chairman Cum Managing Director |
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Date
of Birth/Age : |
55 years |
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Qualification
: |
He is 55
years old. A Bachelor of Science from |
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Experience
: |
He joined Steel Authority of India Limited (SAIL)as a
Management Trainee. In his 32 years of service, he worked in various
capacities and rose to the level of Executive Director (Commercial). During
his tenure,he has been exposed to various facets of Marketing and Advanced
Management Programmes in |
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Date
of Appointment : |
2.12.2002 |
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Name : |
Mr. R. K. Gupta |
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Designation
: |
Director (Finance) |
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Date
of Birth/Age : |
59 years |
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Qualification
: |
B.E.Electricals (Hons), from BITS Pilani, and ICWA holder
of commerce and Fellow member of the |
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Date
of Appointment : |
2.12.2002 |
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Name : |
Mr. Shreeman N.S. |
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Designation
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Director (Commercial) |
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Address
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Date
of Birth/Age : |
52 years |
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Qualification
: |
Master Degree in Science (Maths) and MBA (Public |
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Experience
: |
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Date
of Appointment : |
26.09.2003 |
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Name : |
Mr. K. Swaminathan |
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Designation
: |
Director (Finance) |
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Date
of Birth/Age : |
51 Years |
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Qualification
: |
Chartered Accountant |
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Name : |
Dr. S. Y. Quraishi |
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Designation
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Non Functional Director |
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Name : |
Mr. J. P. Singh |
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Designation
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Non Functional Director |
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Name : |
Mr. B. K. Bhattacharya |
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Designation
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Non Functional Director |
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Name : |
Mr. Vikram V. Desai |
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Designation
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Non Functional Director |
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Name : |
Mr. B. B. Dhar |
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Designation
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Non Functional Director |
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Name : |
Mr. B. C.Patnaik |
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Designation
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Non Functional Director |
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Name : |
Mr. J N Kini |
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Designation
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Director (Prodution) |
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Name : |
Mr. B K Bhattacharya |
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Designation
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Non – official Director |
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Name : |
Mr. N R Mohanty |
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Designation
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Non – official Director |
KEY EXECUTIVES
Other personnel
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Mrs. Shoba
Bhat
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Company Secretary |
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Management
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Mr. S. Lahiri
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Executive Director |
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Mr. P. N.
VISWANATHAN |
Executive Director |
Mr. U. A. Pikle
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General Manager |
Mr. M. B. Padiyar
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General Manager |
Mr. H. Guruprasad
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General Manager |
Mr. S. Srinivasan, IAS
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Chief Vigilance Officer |
MAJOR SHAREHOLDERS
|
Category |
No. of Shares |
% of Shares |
|
Promoters-Indian
Promoters, Government of |
628,144,130 |
98.99 |
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Mutual
Funds and UTI |
2,580,000 |
0.41 |
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Banks,
Financial Institutions, INS, COS |
800000 |
0.48 |
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Insurance
|
2778300 |
0.08 |
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Indian
Public |
6,800 |
0.00 |
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Any other |
204,570 |
0.03 |
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Total |
634,513,800 |
100.00 |
BUSINESS DETAILS
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Line
of Business : |
Mining and Beneficiation of |
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Exports
to : |
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Imports
from : |
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PRODUCTION STATUS
The
company’s production status as on 31st March, 2003 was as under:-
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Class of Goods |
Unit
|
Actual Production |
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Hot Metal |
MT |
116044 |
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Pig Iron |
MT |
103285 |
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Slag |
MT |
27116 |
GENERAL INFORMATION
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Customers
: |
·
Ispat Industries Limited ·
Vikram Ispat ·
Ispat Metalics India Limited ·
Jindal Vijaynagar Steel Limited |
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No. of
Employees : |
2290 |
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Bankers
: |
State
Bank of |
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Facilities : |
-- |
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Banking Relations : |
Satisfactory |
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Auditors
: |
B P Rao
& Company Chartered Accountants |
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Associates/Subsidiaries
: |
Kudremukh
Iron & Steel Company Limited |
CAPITAL STRUCTURE
Authorised
Capital :
|
No. of
Shares |
Type |
Value |
Amount |
|
67,50,10,000 |
Equity Shares |
Rs. 10/- each |
Rs. 6750.100 millions |
Issued,
Subscribed & Paid-up Capital :
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No. of
Shares |
Type |
Value |
Amount |
|
63,45,10,000 |
Equity Shares |
Rs. 10/- each |
Rs. 6345.100 millions |
FINANCIAL
DATA
[all
figures are in Rupees Millions]
ABRIDGED
BALANCE SHEET
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SOURCES OF FUNDS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
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SHAREHOLDERS
FUNDS |
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1] Share
Capital |
6345.100 |
6345.100 |
6345.100 |
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2] Share
Application Money |
0.000 |
0.000 |
0.000 |
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3]
Reserves & Surplus |
14294.300 |
12178.400 |
7160.100 |
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4]
(Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH
|
20639.400 |
18523.500 |
13505.200 |
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LOAN
FUNDS |
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1]
Secured Loans |
148.900 |
90.700 |
3.600 |
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2]
Unsecured Loans |
0.000 |
0.000 |
0.000 |
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TOTAL
BORROWING
|
148.900 |
90.700 |
3.600 |
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DEFERRED
TAX LIABILITIES |
|
0.000 |
0.000 |
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TOTAL
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20788.300 |
18614.200 |
13508.800 |
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APPLICATION OF FUNDS
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FIXED ASSETS [Net Block]
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1922.000 |
2925.300 |
4096.100 |
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Capital work-in-progress
|
204.200 |
148.200 |
54.500 |
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INVESTMENT
|
0.000 |
0.000 |
170.000 |
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DEFERREX TAX ASSETS
|
0.000 |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES
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Inventories
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1709.500
|
1067.500
|
987.100 |
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Sundry Debtors
|
240.300
|
1125.600
|
944.900 |
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Cash & Bank Balances
|
14271.000
|
13072.600
|
6026.500 |
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Other Current Assets
|
0.000
|
0.000
|
0.000 |
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Loans & Advances
|
11152.200
|
8753.200
|
4682.200 |
Total Current Assets
|
27373.000 |
24018.900
|
12640.700 |
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Less: CURRENT LIABILITIES & PROVISIONS
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Current Liabilities
|
994.900
|
1382.500
|
1512.900 |
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Provisions
|
7716.000
|
7151.400
|
2051.100 |
Total Current Liabilities
|
8710.900 |
8533.900
|
3564.000 |
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Net
Current Assets
|
18662.100 |
15485.000
|
9076.700 |
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MISCELLANEOUS EXPENSES
|
0.000 |
55.700 |
111.500 |
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TOTAL
|
20788.300 |
18614.200 |
13508.800 |
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PROFIT & LOSS ACCOUNT
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
|
Sales Turnover |
12322.800 |
18537.700 |
10293.800 |
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Other Income |
127.070 |
59.960 |
44.87 |
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Total
Income |
13593.500 |
19137.300 |
10742.500 |
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Profit/(Loss) Before Tax |
5481.000 |
11119.100 |
4064.100 |
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Provision for Taxation |
1981.000 |
4620.700 |
1057.100 |
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Profit/(Loss) After Tax |
3563.000 |
6498.400 |
3007.000 |
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Expenditures : |
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Raw materials |
619.100 |
34.800 |
16.000 |
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Excise duty |
525.000 |
470.200 |
236.600 |
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Power and fuel cost |
2450.800 |
2658.200 |
2393.600 |
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Other manufacturing expenses |
1445.500 |
1766.000 |
1700.600 |
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Employee cost |
967.700 |
883.300 |
713.400 |
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Selling and administration expenses |
361.400 |
383.400 |
441.300 |
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Miscellaneous expenses |
404.500 |
905.400 |
697.700 |
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|
Interest |
5.600 |
7.000 |
5.400 |
|
|
Depreciation |
1332.900 |
909.900 |
4537.900 |
|
Total
Expenditure |
8112.500 |
8018.200 |
10742.500 |
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KEY
RATIOS
|
Year |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
Debt-Equity
Ratio |
0.01 |
0.00 |
0.00 |
|
Long
Term Debt-Equity Ratio |
0.00 |
0.00 |
0.00 |
|
Current
Ratio |
2.92 |
2.97 |
3.49 |
|
TURNOVER
RATIOS |
|
|
|
|
Fixed
Assets |
1.06 |
1.62 |
0.90 |
|
Inventory |
8.87 |
18.05 |
10.68 |
|
Debtors |
18.04 |
17.91 |
11.71 |
|
Interest
Cover Ratio |
979.75 |
1589.44 |
753.61 |
|
Operating
Profit Margin (%) |
55.34 |
64.93 |
44.14 |
|
Profit
Before Interest And Tax Margin (%) |
44.52 |
60.02 |
39.53 |
|
Cash
Profit Margin (%) |
39.73 |
39.96 |
33.81 |
|
Adjusted
Net Profit Margin (%) |
28.91 |
35.06 |
29.21 |
|
Return
On Capital Employed (%) |
27.89 |
69.63 |
33.59 |
|
Return
On Net Worth (%) |
18.20 |
40.58 |
24.54 |
LOCAL AGENCY FURTHER
INFORMATION
HISTORY
Subject, a wholly owned Government of India Enterprise, was
established in 1976 to develop the mine and plant facilities to produce 7.5
million tonnes of concentrate per year. The mine and plant facilities were commissioned
in 1980 and the first shipment of concentrate was made in October 1981. The
outstanding feature of Kudremukh ore is its low
alumna,sulphur,phosphorous,vanadium and other deleterious elements.
A pelletisation plant with a capacity of 3 million tonnes per year was
commissioned in 1987 for production of high quality blast furnace and direct
reduction grade pellets for export.
A 110 km road through ghats was built,and a slurry pipeline to Mangalore port
was completed. KIOCL delivered the project on time, within the estimated cost
of US$630 million .
The company entered into Joint Venture with MECON & MSTC in order to set up
a Pig Iron & Ductile Iron Spun Pipe Plant at Mangalore. For this purpose a
separate company-Kudremukh Iron & Steel Company was set up. The complex was
set up in Baikampady Industrial area in Mangalore and has a blast furnace
capacity of 350 cu.mtrs to manufacture 227,000 tonnes of high grade pig iron
per annum with low phosphorous and low sulphur conten using quality pellets from
KIOCL's pelletisation plant. The production of pig iron was commenced during
2001-02.
KIOCL has obtained ISO 14000 certification for its environmental compliance.
The company has applied to Government of Karnataka for grant of Mining Lease in
the Chikkanayakanahalli area of Tumkur District and also Chiria area of
Singhbhum District of Jharkhand. Since there is low quality reserves in that
area,the company has decided not to pursue with the project.
It is also in the proposal of setting up a Coke Over plant with a capacity of
30 MW at Mangalore next to its Blast Furnace as Backward integration and import
substitution.
HIGHLIGHTS
During the year under report, the Company set a few, which are as under
- Shipment
of 5,02,999 DMT of Pellets during the month of July, 2005 is the highest
quantity despatched in any month so far surpassing the previous high of
4,96,085 DMT of Pellets (including Pellet Fines) despatched during July,
2004.
- Shipment
of 0.961 million tonnes of Pellets in the third quarter of 2005-06 is the
highest quantity of Pellets despatched in any third quarter so far.
- Shipment
of 3,39,873 DMT in November, 2005 and 4,19,333 DMT in December, 2005 is
the highest quantity of Pellets shipped in respective months so far.
MINING LEASE
As already informed in the report for the previous year, in its Judgement
pronounced on 30.10.2002 in the Inter locutory Application IA No.670/2001 filed
by an NGO in Writ Petition (Civil) No.202 of 1995, the Hon'ble Supreme Court
had permitted the Company to mine only the weathered Ore at Kudremukh till
December, 2005 in the already broken-up area. The Company had filed a Petition
before the Hon'ble Supreme Court on 3.12.2003. The Hon'ble Supreme Court, on
30-09-2005 had directed that the mining activities at subject should stop on
31-12-2005. In pursuance with this directive, the mining activities at subject
were stopped on 31-12-2005. The final verdict of the Hon'ble Supreme Court in
IA No. 1010/2003 filed in December with a prayer to permit utilization of 54.01
hectares required for the purpose of safety and stability of the mine at the
time of closure and to extract Primary Ore in the additional area of 374
hectares within the leased area, is awaited. In the meantime, the Hon'ble
Supreme Court had appointed IIT,
PRODUCTION
Concentrate
As against a target of 3.100 million tonnes set in the MoU for the year, the
actual production was 2.922 million tonnes, which is 94% achievement of the
target.
Pellets
Production of 2.834 million tonnes of Pellets, as against the MoU target of
3.050 million tonnes, represents 93% achievement of the target.
MEMORANDUM OF UNDERSTANDING WITH THE
GOVERNMENT
The Company started signing MoU with the Govt. of India from the year 1991-92.
Except for the year 1998-99, your Company has been rated 'Excellent' for the
past twelve years. Performance Evaluation of the Company for the year 2005-06
vis-a-vis MoU targets on a provisional basis indicates that the Company
qualifies to be rated as 'EXCELLENT'. The final evaluation by the Government of
India and the result thereof is awaited.
FINANCE AND ACCOUNTS
The Authorised, Subscribed and Paid-up Share Capital of the Company remained
unchanged during the year.
Internal resources generated during the year amounted to Rs. 4951.6 millions.
Total Sales during the year amounted to Rs.12322.8 millions. This is equal to
US $ 278.341 million as compared to US $ 415.133 million during the previous
year.
Cash balance at the end of the year stood at Rs. 14271.0 millions (including
Term Deposits) and the Overdraft as on 31st March, 2006 amounted to Rs. 148.9 millions.
Reserves and Surpluses as on 31st March 2006 were Rs. 14294.3 millions as
against Rs. 12178.4 millions as on 31st March 2005 after providing for deferred
Tax liabilities. Although the Company had sufficient resources to undertake
capital expenditure as projected in the annual plan and 10th five-year plan
period, in view of the Hon'ble Supreme Court judgement which permitted the
Company to mine at subject only till end 2005 and other factors, major capital
intensive projects could not be taken up.
During the year under report, the Company proposes to carry Rs. 2116.0 millions
to the General Reserve Account.
During the year, the Directors had recommended payment of Interim Dividend on
two occasions - @ 10% in December, 2005 and @ 5% in February, 2006 on the
Paid-Up Equity Share Capital, and the same was paid. The Directors propose to
pay Final Dividend of 20% including the Interim Dividend of 15% already paid.
This works out to Rs.1269.0 millions excluding Dividend Tax. With this, the
company continues to pay Dividend for the fourteenth year in succession.
MARKETING AND
EXPORTS
During the year, Concentrate was supplied to
EXPANSION AND
DIVERSIFICATION
Mining in Orissa: The Govt. of Orissa had identified an area of over 54 sq.
kms. (5400 hectares) in Sundargarh District, containing probable low-grade
Ramanadurg Iron
Joint Venture with SAIL: In September, 2004, the Company had entered into an
MoU with SAIL for a Joint Venture for Mining at Bursua, Kalta and Taldih mines
in Orissa.
1 Work Order was placed on M/s NMDC on 20th September, 2004 to carry out the
test works on the iron ore samples of Taldih deposit. M/s NMDC has completed
the initial
An Order was placed on M/s MECON for preparation of a
Pre-feasibility Report. Their Report has been received and the same has been
discussed between SAILIKIOCL and MECON. Action is on hand for getting the DPR
prepared. EIAIEMP study and preparation of a Mining Plan is in progress.
As a part of the aforesaid Joint Venture, the possibility of setting up of a 4
MTPY Beneficiation plant and a 2 MTPY Pellet plant at Taldih in Orissa is also
being examined. Mining plan and EIAIEMP report are under preparation.
JOINT VENTURE PIG IRON PROJECT
In order to set up a Pig Iron & Ductile Iron Spun Pipe Plant at Mangalore, the
Company has entered into Joint Venture with MECON & MSTC. A separate
Company - Kudremukh Iron & Steel Company Limited (KISCO) has been set up
for the purpose. Production and Sale of Hot Metal, Pig Iron and Slag during the
year 2005-06 was as under:-
MERGER OF KISCO WITH
KIOCL
A proposal for merger of KISCO with KIOCL has been approved by the Board of
Directors. The procedural formalities are under completion. As the members are
aware, the Company has invested a sum of Rs.500 millions in KISCO towards
Equity
OHSAS - 18001:1999
The Company has successfully implemented the Occupational
Health and Safety Management System as per OHSAS - 18001. The system is
certified with effect from December, 2003 and the certificate is valid upto
December, 2006.
PERSONNEL
The total number of personnel on the rolls of the Company as on 31st March,
2006 was 1889 consisting of 1277 workmen, 431 Executives and 181 Supervisors as
against 1942 on 31st March, 2005.
INDUSTRIAL
RELATIONS
The recognition granted to the Kudremukh Shram Shakti Sangathan (KSSS) expired
on 08-09-2004. In the elections through secret ballot conducted on 1305-2005,
Kudremukh Employees Union (KEU) emerged as the winners. With the support of a
majority, KEU is now the recognised
The Industrial Relations situation remained peaceful throughout the year in all
the establishments of the Company. Consequent upon grant of recognition to a
new Union (KEU), the Joint Council, Shop Councils, Safety Committees and
Canteen Management Committees were reconstituted. These Councils/ Committees
meet regularly and their discussions contribute towards improving Industrial
Relations, Production activities and resolving differences, if any.
Outlook
The Company has a large Equity base with no long term Debt to service. This is
a source of strength to the Company. In order to fruitfully deploy its
financial and technical strength for the future growth of the Company, the
Company is exploring the possibilities of entering into new areas of business,
acquiring new mining leases and formulation of diversification schemes for
implementation. The Company has entered into a Joint Venture with MECON &
MSTC to set up a Pig Iron & Ductile Iron Spun Pipe Plant at Mangalore. A
separate Company - Kudremukh Iron & Steel Company Limited (KISCO) has been
set up for the purpose. The Pig Iron is under commercial production. A global
tender notice was issued by KISCO in January, 2001 for setting up of a 70,000
tonnes per annum DISP plant on a turnkey basis. Bids were received from 3
parties and the evaluation completed. However, keeping in view the fact that
KISCO is not in a position to find resources to fund the DISP project and the
Company may not be in a position to divert its resources for taking up the DISP
project, the tender for DISP has been closed. Consequent upon the expiry of the
mining lease in July, 1999 in respect of the existing mine at Kudremukh, the
Company was operating its facilities on a temporary Work Permit. Subsequently,
the Hon'ble Supreme Court has permitted the Company to continue the mining
activities at Kudremukh till December, 2005. For the sustained growth and
continuity, the Company has taken up various activities.
The Govt. of Orissa has identified an area of over 54 sq. kms. (5400 hectares)
containing probable low grade
In March, 2003, the Government of Karnataka had issued a Gazette Notification
inviting fresh applications for grant of mining lease in the Bellary-Hospet
area. Although the Company had submitted an application in March, 2001 for
grant of Mining Lease for exploitation of
In September, 2004, the Company has entered into an MoU with SAIL for a Joint
Venture for Mining at Bursua, Kalta and Taldih mines in Orissa. Two studies -
Mining
and Beneficiation
The largest iron ore mine in
Pettetization
The pellets produced in this plant are exported for use in
Blast Furnaces as well as in the production of Direct Reduced Iron. The iron
ore concentrate for pelletisation is fed through a roll press to improve the
Blaine Index.
Ship
loading
Iron ore concentrate is stored in two stockpiles which have
a total capacity of 400000 tonnes for being reclaimed and loaded into ships
through a ship loader with a rated capacity of 6000 tonnes an hour. A loading rate of 20000 to 30000 tonnes a day is
guaranteed for panamax type vessels.
MEMBERSHIPS
·
Confederation
of Indian Industry
Website Details Attached:
The
story of KIOCL
Kudremukh Iron Ore Company Limited, a wholly owned
Government of India Enterprise, was established in 1976 to develop the mine and
plant facilities to produce 7.5 million tonnes of concentrate per year. The
mine and plant facilities were commissioned in 1980 and the first shipment of
concentrate was made in October 1981. A pelletisation plant with a capacity of
3 million tonnes per year was commissioned in 1987 for production of high
quality blast furnace and direct reduction grade pellets for export. Legend and
wild beauty, Kudremukh, in the State of
The idea of beneficiating the ore deposits was first
proposed when several Japanese companies came together with the National
Mineral Development Corporation (NMDC), a Government of India undertaking,
evincing an interest in such a project. Pilot studies suggested that the
surface ore with 38% iron could be enriched to a concentrate of 67% iron with
available new technologies. The concentrate could be transported to Mangalore,
on the coast of the
Initially
A 110 km road through ghats was built, and a slurry pipeline
to Mangalore port, the port itself had to be deepened.
KIOCL delivered the project, in time, within the estimated
cost. But
The Winning habit
Iron ore trade in the world is fiercely competitive. KIOCL
has now established itself as a reliable supplier of iron ore concentrates and
iron oxide pellets for many a discerning customer in the international market.
On account of the marketing acumen and crisis management skills of KIOCL the
company could adapt itself admirably to the changed market situation caused by
loss of the Iranian market.
KIOCL's products are now exported to
A
three million ton per year Pellet Plant based on Lurgi Straight Grate process
was commissioned at Mangalore in 1987. Later on the capacity
is increased to four million ton per year.
Pelletisation
The
pellets produced in this plant are exported for use in Blast Furnaces as
well as in the production of Direct Reduced Iron. The
iron ore concentrate for Pelletisation is fed
through a roll press to improve the Blaine Index. The
process of pelletisation involves mixing
of iron ore concentrate with limestone and bentonite as
additives. Separate dry grinding mill for grinding lime
stone and bentonite are provided in the pelletisation process. A small
proportion of coke/coal is also used as additive for
improving the physical and metallurgical properties of pellets.
The mixed material is fed to pelletising discs of 7.5 meter dia
for production of green pellets which
are screened on roller screens to remove the undersize and oversize
materials.
Environment:
The road to development need not be
paved with ecological disaster. Subject has shown the way. From the
very formulation stage itself, the company has
displayed its keen commitment towards environment and ecology. The
company built a 100 meter high earth -
fill dam across the Lakhya tributary to prevent
pollution of the river Bhadra . As part of its continuing anti-pollution
program, the company has undertaken the work of increasing the height of the
Lakhya dam to contain tailings from the plant.Two rock-filled
mini dams across the valleys of the crushers arrest mine
run-off during the monsoons. Only the clear surface water joins the
Bhadra. The silt collected in these dams is de silted
during the winter and summer months to keep them
ready for storage for the next monsoon. The silt is rich with washed iron ore,
yielding annually about one and half million
tonnes of quality ore. So, apart from serving the purpose of
controlling pollution, the mini dams provide a rich source of ore
recovery. Turfing has been done on a
large scale in all critical earth - filled areas
to prevent earth slides. As part of its
afforestation program, the company has already planted nearly 7.5 Million
trees to prevent mine run-off and soil wash-off.
Products:
Iron ore concentrate
Kudremukh
produces high grade ironore concentrate which
is ideal for use as sinter feed and for pelletisation.
The concentrate is
being used in the steel plants in
Pellets
Similarly, Kudremukh pellets have excellent
chemical, physical and reduction properties and are ideal feed for blast
furnaces and direct reduction plants.
Kudremukh
blast furnace grade pellets have been
used in blast furnaces of steel mills in
UNAUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED ON 30TH
JUNE 2007
(Rupees in Millions)
|
Sl No. |
Particular
|
Quarter Ended 30th June 2007 2006 |
Year Ended 31st March (Audited) |
|
|
1 |
Net Sales |
|
|
|
|
|
a) Gross
Sales |
2333.100 |
490.300 |
2674.400 |
|
|
b) Less:
Excise Duty |
224.100 |
67.600 |
328.300 |
|
|
c) Net Sales |
2109.000 |
422.700 |
2346.100 |
|
2 |
Other
Income |
|
|
|
|
|
a)
Interest |
256.900 |
237.900 |
1006.500 |
|
|
b) Others |
195.400 |
10.800 |
284.400 |
|
|
c) Total |
452.300 |
248.700 |
1290.900 |
|
|
Total Revenue (1 + 2) |
2561.300 |
671.400 |
3637.000 |
|
3 |
Expenditure |
|
|
|
|
|
a)
(Increase) / Decrease in stock in trade |
222.700 |
14.800 |
(51.700) |
|
|
b)
Consumption of iron ore lumps and fines |
1491.800 |
246.300 |
1597.600 |
|
|
c) Staff
Cost |
131.000 |
124.700 |
528.700 |
|
|
d) Power
and fuel |
331.000 |
88.200 |
715.000 |
|
|
e)
Stores, Spares, Consumables and Additives |
66.200 |
22.600 |
232.700 |
|
|
f) Others
|
13.600 |
46.200 |
96.400 |
|
|
Total Expenditure (a to f) |
2356.300 |
542.800 |
3118.700 |
|
4 |
Interest |
12.500 |
0.200 |
1.500 |
|
5 |
Profit
after interest but before Depreciation
(1 + 2 – 3 – 4 ) |
192.500 |
128.400 |
516.800 |
|
6 |
Depreciation
and DRE |
87.300 |
62.500 |
317.400 |
|
7 |
Profit before tax (5 - 6) |
105.200 |
65.900 |
199.400 |
|
8 |
Provision
for tax |
37.600 |
|
61.700 |
|
9 |
Profit after tax (7 - 8) |
67.600 |
65.900 |
137.700 |
|
10 |
Paid up
equity share capital |
|
6345.100 |
6345.100 |
|
11 |
Reserves
excluding revaluation reserves |
6345.100 |
|
14432.100 |
|
12 |
Basic and
diluted EPS for the period for the year to date and for the previous year |
1.100 |
1.000 |
2.200 |
|
13 |
Aggregate
of Non-promoters shareholdings: Number of
shares Percentage
of sharholdings |
636967.000 100 % |
636967.000 100 % |
636967.000 100 % |
|
SEGMENTWISE REVENUE, RESULTS AND CAPITAL EMPLOYED – UNAUDITED |
||||
|
1 |
Revenue |
|
|
|
|
|
a) Pellet
Plant |
1394.100 |
490.300 |
2674.400 |
|
|
b) Pig
Iron Plant |
939.000 |
|
|
|
|
c) Total |
2333.100 |
490.300 |
2674.400 |
|
|
Less:
Inter – segment revenue |
|
|
|
|
|
Net Sales / Income from Operation |
2333.100 |
490.300 |
2674.400 |
CMT
REPORT [Corruption,
Money laundering & Terrorism]
The Public Notice information has been collected from
various sources including but not limited to: The Courts,
1] INFORMATION ON DESIGNATED PARTY
No
records exist designating subject or any of its beneficial owners, controlling
shareholders or senior officers as terrorist or terrorist organization or whom
notice had been received that all financial transactions involving their assets
have been blocked or convicted, found guilty or against whom a judgement or
order had been entered in a proceedings for violating money-laundering,
anti-corruption or bribery or international economic or anti-terrorism sanction
laws or whose assets were seized, blocked, frozen or ordered forfeited for
violation of money laundering or international anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that
subject is or was the subject of any formal or informal allegations,
prosecutions or other official proceeding for making any prohibited payments or
other improper payments to government officials for engaging in prohibited
transactions or with designated parties.
3] Asset Declaration :
No
records exist to suggest that the property or assets of the subject are derived
from criminal conduct or a prohibited transaction.
4] Record on Financial Crime :
Charges or
conviction registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l Anti-Money
Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No available
information exist that suggest that subject or any of its principals have been
formally charged or convicted by a competent governmental authority for any
financial crime or under any formal investigation by a competent government
authority for any violation of anti-corruption laws or international anti-money
laundering laws or standard.
8] Affiliation with Government :
No record exists to
suggest that any director or indirect owners, controlling shareholders,
director, officer or employee of the company is a government official or a
family member or close business associate of a Government official.
9] Compensation Package :
Our market survey
revealed that the amount of compensation sought by the subject is fair and
reasonable and comparable to compensation paid to others for similar services.
10] Press Report
:
No press reports / filings exists on the subject.
CORPORATE
GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments
on Corporate Governance to identify management and governance. These factors
often have been predictive and in some cases have created vulnerabilities to
credit deterioration.
Our Governance Assessment focuses principally on the
interactions between a company’s management, its Board of Directors,
Shareholders and other financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local
laws, regulations or policies that prohibit, restrict or otherwise affect the
terms and conditions that could be included in the agreement with the subject.
FOREIGN
EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs. 41.09 |
|
|
1 |
Rs. 81.46 |
|
Euro |
1 |
Rs. 55.16 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP
CAPITAL |
1~10 |
6 |
|
OPERATING
SCALE |
1~10 |
5 |
|
FINANCIAL
CONDITION |
|
|
|
--BUSINESS
SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
5 |
|
--CREDIT
LINES |
1~10 |
8 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT
POINTS |
|
|
|
--BANK
CHARGES |
YES/NO |
NO |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER
ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT
POINTS |
|
|
|
--SOLE
DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT
ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
NO |
|
--OTHER
MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
53 |
This
score serves as a reference to assess SC’s credit risk and to set the amount of
credit to be extended. It is calculated from a composite of weighted scores
obtained from each of the major sections of this report. The assessed factors
and their relative weights (as indicated through %) are as follows:
Financial condition (40%) Ownership background
(20%) Payment record (10%)
Credit history (10%) Market trend (10%) Operational size
(10%)
RATING
|
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the
strongest capability for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for
credit transaction. It has above average (strong) capability for payment of
interest and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy.
General unfavourable factors will not cause fatal effect. Satisfactory
capability for payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet
normal commitments. |
Satisfactory |
|
26-40 |
B |
Unfavourable & favourable factors carry similar weight
in credit consideration. Capability to overcome financial difficulties seems
comparatively below average/normal. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and
principal sums in default or expected to be in default upon maturity |
Limited with full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be
exercised |
Credit not recommended |