MIRA
INFORM REPORT
|
Report Date : |
09.06.2007 |
IDENTIFICATION DETAILS
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Name : |
HINDUSTAN COPPER LIMITED |
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Registered Office : |
Tamra Bhavan 1, |
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Country : |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
09.11.1967 |
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Com. Reg. No.: |
28825 |
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CIN No.: [Company
Identification No.] |
L99999WB1967GOI028825 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
CALH00587G |
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Legal Form : |
It is a public limited liability company. The company’s shares are listed on the Stock Exchanges. |
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Line of Business : |
Manufacturer of primary copper in the form of Cathodes, Wire Bar / Wire
Rod and Single Super Phosphate. |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
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 14400000 |
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Status : |
Moderate |
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Payment Behaviour : |
Satisfactory |
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Litigation : |
Clear |
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Comments : |
Subject is an old and established company having moderate track. Company’s
profitability is under severe pressure. It has huge accumulated losses.
Payments are reported as slow and delayed. As subject is owned by Government of India, lenders and creditors can
feet about its exposure to the company. The company can be considered for business dealings at usual trade
terms and conditions. |
LOCATIONS
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Registered/ Corporate Office : |
Tamra Bhavan 1, |
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Tel. No.: |
91-33-240 0423 / 240 8940 / 240 2409 / 240 7805 / 240 2532 |
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Fax No.: |
91-33-247 8640 / 240 8478 |
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Telex |
021-5112 / 021-2248 |
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Telegram |
HINDCOPPER |
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E-Mail : |
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Factory 1 : |
Khetri Copper Complex |
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Tel. No.: |
91-(01593)
220-001/305/059 |
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Fax No.: |
91-(01593)
220-002/038 |
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Telegraphic
Code |
COPPER
KHETRINAGAR- 333504 |
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E-Mail |
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Factory 2 : |
Indian Copper Complex |
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Phone
– |
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Tel. No.: |
91-(06585)
225-768/492/873/869 |
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Fax No.: |
91-(06585)
225-806 |
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Telegraphic
Code |
HINDCOPPER
GHATSILA-832303 |
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E-Mail |
E-Mail
– hclicc@sify.com |
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Factory 3 : |
Malanjkhand Copper Project |
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Tel. No.: |
91-(07637)
257-072/042/040/032/016 |
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Fax No.: |
91-(07637)
257038 / 032 |
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Telegraphic
Code |
HINDCOPPER
BALAGHAT- 481116 |
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E-Mail |
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Factory 4 : |
Taloja Copper Project |
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Tel. No.: |
91-(022)
2741-2738/2740-2679 |
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Fax No.: |
91-(022)
2741-2468 |
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Telegraphic
Code |
HINDCOPPER
PANVEL- 410 206 |
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E-Mail |
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Sales Offices : |
At |
DIRECTORS
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Name : |
Mr. Satish C Gupta |
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Designation : |
Chairman cum Managing Director |
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Name : |
Mr. Manabendu Samajpati |
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Designation : |
Director (Finance) |
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Name : |
Mr. P Swarup |
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Designation : |
Director (Operations) |
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Name : |
Mr. Dinabandhu Satapathy |
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Designation : |
Director (Personnel) |
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Name : |
Mrs. Ajita Bapai Pande |
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Designation : |
Joint Secretary, Ministry
of Mines, Government of |
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Name : |
Mr. Sujit Gulati |
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Designation : |
Director |
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Name : |
Mr. Sanjiv Kumar Mittal |
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Designation : |
Joint
Secretary & Financial Advisor, Ministry of Mines, Government of |
KEY EXECUTIVES
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Name : |
Mr. C S Singhi |
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Designation : |
Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
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President of |
724419500 |
99.48 |
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Mutual Funds |
300 |
0.00 |
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Financial Institutions |
872380 |
0.12 |
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Private Corporate Bodies |
510270 |
0.07 |
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Indian Public including employees |
2392067 |
0.33 |
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NRIs/OCBs |
23483 |
0.00 |
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Total |
728218000 |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturer of primary copper in the form of Cathodes, Wire Bar /
Wire Rod and Single Super Phosphate. |
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Products : |
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PRODUCTION STATUS
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Particulars |
Unit |
Licensed
Capacity |
Installed
Capacity |
Actual
Production |
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Main Products |
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Wire Bar |
MT |
39400 |
39400 |
1383 |
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Wire Rod |
MT |
60000 |
60000 |
34624 |
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Cathodes |
MT |
47500 |
47500 |
36087 |
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BY-PRODUCTS: |
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Gold |
Kg |
264 |
698 |
166 |
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Silver |
Kg |
4763 |
9868 |
3384 |
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Nickel Sulphate |
MT |
250 |
390 |
-- |
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Selenium |
Kg |
10000 |
14600 |
7719 |
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Sulphuric Acid |
MT |
236000 |
236000 |
40297 |
GENERAL INFORMATION
|
Suppliers : |
v
Alpha Carbon Brash Manufacturing Company v
Aman Conveyor Roller Industry v
American Rubber Manufacturing Company v
Amruta Industries v
Ankit Industrial Gases (I') Limited v
Applo Batteries v
Arudra Engineers (Private) Limited v
Ashok Machine Tools v
Associated Pneumatic Industries v
Atlas Industrial Corporation v
Ayyappa Engineers v
Bengal Rubber Manufacturing Limited v
Bharat Engineering & Manufacturing Company v
Bharat Minerals v
Bharat Wood Works v
Bihar Paints & Pigments Company v
v
Cee v
Chota Nagpur Foundry Limited v
Courtesy Printers v
Deepak Engineering Company v
Deepak Engineering Works v
Denish Engineering Works v
Diamet Enterprises v
Diamond Chem Industries v
Dujodwal Resins v
Engineering Enterprises v
Flow Creators v
Foundry of v
Friends Engineering Corporation v
Gajalaxmi Iron Works v
Giriraj Hydraulics (Private) Limited v
Glaxy Foundries (Private) Limited v
Goel Industries v
Goyal Minerals v
Grand v
v
v
v
Hydrokrimp A.C. (Private) Limited v
lemco Industries (Private) Limited v
IGP Engineer (Private) Limited v
Indo Industrial Services v
Inicorp Industries v
Iqbal Brothers (Private) Limited v
J.E. Thermit v
Jairam Engineering Works v
Jhonson Rubber v
K.M.Udyog v
K.N.Welding & Engineering v
v
Kiran Metal Works v
v
Kwality Engineering Works v
Laxmi Chemical v
Laxmi Industries v
Laxmi Polyplast Industries v
M.A.S. Industries v
Maheswari Lime Works v
Metreat Products v
Modern Rubber Products v
Mohotta Fastners v
Nabin Engineering Works v
v
National Asbestors Corporation v
Navbharat Explosives Company v
Orlience Engineering Enterprises v
Fodder Industries v
Polymold Products v
Prakash Printers v
Precision Engineering Works v
Premier Rubber Mills v
Print Well v
R K Industries v
R.K.Enterprises v
Refractory Specialist v
Rishi Industries v
Rollick Industries v
Sharma Engineering Works v
Shree Jagannath Ferro Castings v
Siva Metal Industries v
Small Tools & Allied Manufacturing Company v
Spair Enterprises v
S. S. Suppliers v
Starling Engineering Works v
Subernarekha Enterprises v
Suman Industrial Corporation v
Suyog Chemicals v
Talcem Castings v
The Water Supply Specialists (Private) Limited v
Thejo Engineering Services v
Thakkar Polypack Industries v
Tirupati Engineering Works v
Toshniwal Process Instruments (Private) Limited v
Unicast Engineering v
Unik Engineers v
Universal Asbestos Cement Products v
Utkal Moulders v
UTS v
Varun Polypack v
Veeckey Industries v
Vulcan Industrial Engineering Company v
Wood Roll |
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Customers : |
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No. of Employees : |
5583 |
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Bankers : |
v
State Bank of v
State Bank of v
United Bank of v
Indian Overseas Bank v
Punjab National Bank v
State Bank of v
Syndicate Bank |
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Facilities : |
SECURED LOANS (Rs. In millions)
Amount
falling due within next twelve months Rs.1750.000 millions (Previous year Rs.
299.080 millions) Note 1 : 14.00 % Secured
Redeemable Non-Convertible Debentures are redeemable in 16 quarterly
installments @ Rs. 62.500 millions commencing from December 15, 2003 and
ending on September 15, 2007. The company had redeemed four installments of
Rs 62.500 millions each during the year and consequently the face value of
each debenture is reduced from Rs. 62.500 millions to Rs. 37.500 millions. Note 2 : 10.65 %
Secured Redeemable Non-Convertible Bonds of Rs. 10.000 millions each
aggregating to Rs. 1,500,000 millions have been redeemed at par in two
tranches of Rs.750,000 millions each on due dates i.e. on April 1,2006 and
July 1, 2006 respectively. Note 3 : 14.75% 7
year Redeemable Bonds of Rs.0.100 millions each aggregating to Rs.122,700
millions were redeemable at par in three annual installments of 30%, 30% and
40% commencing from 31st May, 2003. The third installment of 40% which was
due on May 31st, 2005 has been redeemed during the year. 4. UNSECURED LOANS
Amount
falling due within next twelve months Rs. 50.041 millions (Previous year Rs.
155.541 millions) Note 1 : Out of
the total 14 % Unsecured Privately Placed Bonds of Rs. 633.300
millions, the Company has redeemed the entire amount of Rs 633.300 millions
(including Rs.155.500 millions during the year). Note 2 : 7.50%
Corporate Term Loan of Rs 75.000 millions is redeemable in 16 equal quarterly
installments starting from June 2007 quarter and ending in March 2011
quarter. |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
M C Bhandari & Company, Chartered Accountants, Kolkata Mr. K B Chandna & Company, Chartered Accountants, New Dehi |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
900000000 |
Equity Shares |
Rs.10/- each |
Rs.9000.000 millions |
|
2000000 |
7.5% Non Cumulative Preference Shares |
Rs.1000/- each |
Rs.2000.000 millions |
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Total |
|
Rs.11000.000
millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
710473700 |
Equity Shares of Rs 10/- each fully paid up in cash |
Rs.10/- each |
7104.737 |
|
10244300 |
Equity Shares of Rs 10/- each issued pursuant to a contract without
payment being received in cash |
Rs.10/- each |
102.443 |
|
7500000 |
Equity Shares of Rs 10/- each pursuant to Indian Copper Corporation (Acquisition
of Undertaking) Act,1972 without payment being received in cash |
Rs.10/- each |
75.000 |
|
1807324 |
7.5% Non Cumulative Preference Shares |
Rs.1000/- each |
1807.324 |
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Total |
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Rs.9089.504 |
FINANCIAL DATA
[all figures are in
Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
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SHAREHOLDERS FUNDS |
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|
|
|
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1] Share Capital |
9089.504 |
9089.504 |
5436.100 |
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2] Share Money Awaiting Allotment |
400.000 |
400.000 |
0.000 |
|
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3] Reserves & Surplus |
1366.419 |
99.350 |
(8287.500) |
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4] (Accumulated Losses) |
(7233.446) |
(7816.428) |
0.000 |
|
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NETWORTH |
3622.477 |
1772.426 |
(2851.400) |
|
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LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
1923.126 |
3409.785 |
4149.800 |
|
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2] Unsecured Loans |
1000.054 |
155.554 |
238.200 |
|
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TOTAL BORROWING |
2923.180 |
3565.339 |
4388.000 |
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DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
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|
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|
|
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TOTAL |
6545.657 |
5337.765 |
1536.600 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
1846.838 |
2006.066 |
2170.900 |
|
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Discarded Fixed Assets net of provision |
0.000 |
15.483 |
0.000 |
|
|
Capital work-in-progress |
178.945 |
166.714 |
2995.600 |
|
|
Mine Development Expenditure |
2991.813 |
2760.264 |
0.000 |
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|
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INVESTMENT |
0.017 |
0.017 |
0.000 |
|
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DEFERREX TAX ASSETS |
900.196 |
49.789 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
3719.924
|
2256.384 |
2201.700 |
|
|
Sundry Debtors |
444.902
|
115.493 |
180.800 |
|
|
Cash & Bank Balances |
1303.329
|
75.533 |
170.300 |
|
|
Other Current Assets |
10.707
|
10.594 |
0.000 |
|
|
Loans & Advances |
890.437
|
555.540 |
500.900 |
|
Total
Current Assets |
6369.299
|
3013.544 |
3053.700 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Current Liabilities |
5741.451
|
2674.112 |
5820.500 |
|
|
Provisions |
0.000
|
0.000 |
896.800 |
|
Total
Current Liabilities |
5741.451
|
2674.112 |
6717.300 |
|
|
Net Current Assets |
627.848
|
339.432 |
(3663.600) |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
33.700 |
|
|
|
|
|
|
|
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TOTAL |
6545.657 |
5337.765 |
1536.600 |
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PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
|
Sales Turnover |
9144.871 |
4827.510 |
5193.900 |
|
|
Other Income |
592.410 |
986.875 |
1418.100 |
|
|
Total Income |
9737.281 |
5814.385 |
6612.000 |
|
|
|
|
|
|
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|
Profit/(Loss) Before Tax |
1002.163 |
520.624 |
(561.600) |
|
|
Provision for Taxation |
(56.681) |
(39.181) |
0.000 |
|
|
Profit/(Loss) After Tax |
1058.844 |
559.805 |
(561.600) |
|
|
|
|
|
|
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|
Total Earnings |
418.328 |
107.454 |
NA |
|
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Imports : |
|
|
|
|
|
|
Raw Materials |
3254.420 |
0.000 |
NA |
|
|
Stores & Spares |
26.554 |
23.262 |
NA |
|
Total Imports |
3280.974 |
23.262 |
NA |
|
|
|
|
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Expenditures : |
|
|
|
|
|
|
Manufacturing Expenses |
|
|
489.800 |
|
|
Administrative Expenses |
2797.246 |
2146.470 |
536.700 |
|
|
Raw Material Consumed |
3161.723 |
860.844 |
482.300 |
|
|
Miscellaneous Expenses |
|
|
695.300 |
|
|
Salaries, Wages, Bonus, etc. |
1274.562 |
869.190 |
2185.000 |
|
|
Interest |
385.385 |
429.916 |
596.200 |
|
|
Insurance Expenses |
|
|
|
|
|
Power & Fuel |
|
|
1314.500 |
|
|
Depreciation & Amortization |
583.666 |
557.533 |
177.000 |
|
|
Other Expenditure |
532.536 |
429.808 |
696.800 |
|
Total Expenditure |
8735.118 |
5293.761 |
|
|
SUMMARISED RESULTS
|
PARTICULARS |
|
|
31.03.2007 (Full year) |
|
Sales Turnover |
|
|
15632.200 |
|
Other Income |
|
|
236.600 |
|
Total Income |
|
|
15868.800 |
|
Total Expenditure |
|
|
12044.800 |
|
Operating Profit |
|
|
3824.000 |
|
Interest |
|
|
335.100 |
|
Gross Profit |
|
|
3488.900 |
|
Depreciation |
|
|
171.100 |
|
Tax |
|
|
213.200 |
|
Reported PAT |
|
|
3104.600 |
|
Dividend (%) |
|
|
0.000 |
KEY RATIOS
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
Debt-Equity Ratio |
1.41 |
0.00 |
0.00 |
|
Long Term Debt-Equity Ratio |
1.14 |
0.00 |
0.00 |
|
Current Ratio |
0.99 |
0.56 |
0.45 |
|
TURNOVER RATIOS |
|
|
|
|
Fixed Assets |
1.58 |
0.82 |
0.75 |
|
Inventory |
2.97 |
2.24 |
2.37 |
|
Debtors |
37.63 |
37.77 |
42.82 |
|
Interest Cover Ratio |
3.30 |
2.21 |
0.06 |
|
Operating Profit Margin(%) |
13.55 |
20.09 |
4.07 |
|
Profit Before Interest And Tax Margin(%) |
12.05 |
16.99 |
0.67 |
|
Cash Profit Margin(%) |
10.44 |
13.11 |
-7.40 |
|
Adjusted Net Profit Margin(%) |
8.93 |
10.00 |
-10.81 |
|
Return On Capital Employed(%) |
9.72 |
13.33 |
0.00 |
|
Return On Net Worth(%) |
11.75 |
41.12 |
0.00 |
STOCK PRICES
|
Face Value |
Rs.10.00/- |
|
High |
Rs.89.60 |
|
Low |
Rs.87.00 |
LOCAL AGENCY FURTHER INFORMATION
HISTORY
The company was incorporated on 9th November, 1967 under
Companies’ Act 1956. It was established
as a Government of India Enterprise to take over assets from National Mineral
Development Corporation Limited. The
Government of India nationalised Indian Copper Complex Limited at Ghatsila in
It’s Company Registration No. is 28825.
BUSINESS
The company is engaged in manufacture primary copper in the form of
Cathodes, Wire Bar / Wire Rod and Single Super Phosphate. The company is also manufacture Sulphuric
Acid, Gold, Silver, Selenium and Nickel Sulphate as by-products.
The company has been giving high priority to conservation of energy on
continuous basis. It has fixed norms of
energy consumption at different stages of its operation n various Units and those
are closely monitored. The improvement
achieved in this area in the past has been maintained in the current year also.
Financial performance of the Company has shown significant improvement during
2005-06 over previous year. Company registered 88.47% growth in sales turnover
and 89% growth in its net profit after tax over the previous year. Cash profit
during the year was Rs. 1233.300 millions as compared to Rs. 848.000 millions
in 2004-05.
During the year Company sold 38631 tonnes of refined copper of which
1402 tonnes was in the form of exports. This was in fact the first time ever
that Company exported refined copper.
PRODUCTION PERFORMANCE
|
Products |
2005-2006 (April 2005 to
March 2006) |
2004-2005 (April 2004 to
March 2005) |
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|
|
KCC |
ICC |
MCP |
Total |
KCC |
ICC |
MCP |
Total |
|
|
931 |
- |
1706 |
2637 |
872 |
- |
2051 |
2923 |
|
|
926 |
- |
2049 |
2975 |
894 |
- |
2342 |
3236 |
|
Metal in Conc.(T) |
7747 |
- |
15237 |
22984 |
7742 |
- |
21184 |
28926 |
|
Cathodes(T) - Own |
19843 |
15750 |
- |
35593 |
6766 |
12511 |
- |
19277 |
|
Tolled |
336 |
158 |
- |
494 |
4909 |
0 |
- |
4909 |
|
Total |
20179 |
15908 |
- |
36087 |
11675 |
12511 |
- |
24186 |
|
CC Wire Rod(T) - Own |
- |
- |
- |
34624 |
- |
- |
- |
23203 |
|
Conversion |
- |
- |
- |
125 |
- |
- |
- |
4220 |
|
Total |
- |
- |
- |
34749 |
- |
- |
- |
27423 |
KCC-Khetri Copper Complex, ICC-Indian Copper Complex, MCP-Malanjkhand
Copper Project
Refined copper(cathode) and CC Wire rods produced during 2005-06 were
higher by 49% and 27% respectively over previous year. However, physical
performance in the mining sector (ore and metal in concentrates) was affected
due to low grade of ore and past backlog in mine development work.
In order to enhance generation of copper ore from captive mines to
reduce dependence on imported concentrate, thrust has been given to augment
development work in the 'underground mine' at Khetri (Rajasthan) and 'open cast
mine' at Malanjkhand (MP), and to do so, the in-house resources have been
supplemented by engaging contractual agencies. Besides, feasibility of
reopening some of the closed mines is also being examined. All these related
issues are being addressed through a comprehensive turnaround plan.
POWER SUPPLY POSITION
Power supply position in all the units of the Company was satisfactory.
ENERGY CONSERVATION
HCL continued to give priority to energy conservation at various stages
right from mining of ore to extraction of copper metal and other by- products.
Special efforts were made in making the operations energy efficient. For
quantifying savings in energy and to improve energy efficiency in the four
units, i.e. Khetri Copper Complex, Indian Copper Complex, Malanjkhand Copper
Project and Taloja Copper Project, HCL has appointed M/s Petroleum Conservation
Research Association (PCRA) as technical consultant to carry out energy audit
work and to identify and recommend various energy saving options.
PROGRESS OF NEW PROJECTS/EXPANSION SCHEMES
Expansion of Refinery plant of ICC from 16500 tonne capacity to 19200
tonne capacity is under progress. Purchase orders for the required material
have been placed and 90% material has been received at site. Total cost of the
project is Rs. 12.000 millions out of which Rs. 7.943 millions has been spent.
The expansion will enable HCL to increase production and reduce the per unit
cost at ICC. During the year, Company spent an amount of Rs. 110 millions for
Renewal & Replacement (R & R) of plant and machinery for maintaining
existing operations from internal generation of funds.
DEVELOPMENT OF SSI AND ANCILLARY UNITS
All production units of Hindustan Copper Limited continued to follow
Government guidelines in encouraging procurement of materials from SSI &
Ancillary units in or around their areas.
Industry Structure and Developments
Four major players dominate Indian Copper Industry.
In the financial year 2005-06, Government of India's increasing thrust
on infrastructure development pushed
Business Scenario
During the year, the demand for copper in the global market has been
growing steadily. Demand growth in Asian countries, particularly
In
The present market scenario offers ample opportunity to being in value
added niche products into HCL's portfolio, such as 'oxygen free copper',
besides developing niche markets for existing products.
The export market in Asian region presents a strong opportunity for
refined copper producer like HCL. The threat perception for the company
includes great volatility of world copper prices and increasing cost of inputs,
particularly power and fuel due to global inflationary trends. Further, HCL may
also witness threat to its existing market share on account of intense
competition from imports and domestic manufacturers of refined copper. The
gradual but inevitable lowering of import duty on cathode / wirerod will impact
sales realization.
Productwise Performance
During 2005-06, Company sold 38,631 tonnes of refined copper as against
26,043 tonnes in 2004-05 achieving growth of 48%. The sales growth was achieved
by adoption of aggressive marketing policies and organizing customers' meets.
Of the total product portfolio, sales of CC Wire rod was 92%. The product wise
breakup of copper sales during 2005-06 vis-a-vis 2004-05 was as follows :
(In tones)
|
Products |
2005-06 |
2004-05 |
|
CC Wire Rod |
35,488 |
23,607 |
|
Cathode |
2,284 |
2,436 |
|
Wirebar |
859 |
- |
Besides the above main products, during the year Company produced 166
Kgs. of gold, 3384 Kgs. of silver and 40,299 tonnes of sulphuric acid as by-products.
Due to present duty structure and other factors, it is now felt economically
advantageous to export anode slime containing gold and silver, directly, and,
therefore it is planned to suspend operation of Precious Metal Refinery (PMR)
Plant.
HCL exported 1402 MT CC Rods for the first time in 2005-06. In order to
boost exports in future, the process of LME registration of ICC and KCC
cathodes has been initiated under the brand name of 'HINDCOP-CG' &
'HINDCOP-CK' respectively. Deemed Export of CC Rods and Cathodes have also been
started from 2005-06.
Future Outlook
GDP growth in
The world copper prices, though having wide fluctuations, are likely to
remain at high levels and in any case significantly higher than breakeven
levels thereby ensuring Company's profitability.
HCL's thrust for the year 2006-07 is to augment mines production,
increase operational efficiency of process plants, streamline the procurement /
disposal process, etc. Mine development work will be stepped up further at MCP
and KCC to clear the accumulated backlog. HCL has appointed M/s.SRK, UK as
mining Consultant who, while optimizing the operations of existing mines at KCC
and MCP will prepare detailed long term plans for KCC (Banwas deposit) and MCP
(new underground) mines.
Another area of future thrust would be to reduce interest burden through
repayment and restructuring of loans and obtaining reduction in interest rates.
On the IT front, HCL has limited IT intervention; accordingly Company has
appointed I.I.T. Kharagpur as IT consultant for preparing an IT roadmap. For
reducing the expenditure on power, HCL has appointed PCRA to undertake energy
audit of various units of the Company.
Special drive has already been initiated by Company for improving yield
from smelting and refining process at KCC, improving plant availability,
optimising logistics, ensuring 100% availability of raw material and reducing
operating cost. In brief, Company's thrust for the year 2006-07 would be to
augment its internal strength and sustain profitability.
Fixed Assets :
Land :
v
Free hold
v
Lease hold
v
Roads, Bridges and Culverts
v
Railway Siding
v
Buildings including Sanitary
v
and Water Supply System
v
Plant, Machinery and
v
Mining Equipment
v
Electrical Equipment and
v
Installation
v
Shafts and Inclines
v
Vehicles
v
Furniture, Fixtures, Office,Hospital,
v
Survey and Drawing Equipment
PROVISION FOR CONTINGENCIES: -
(Rs. In millions)
|
PARTICULARS |
Discarded Fixed Assets |
Capital WIP & Advance |
Mine Development Expenditure |
Others |
TOTAL |
|
Carrying amount as at 1st April '05 |
74.566 |
510.767 |
514.095 |
1138.654 |
2238.082 |
|
Amount provided during the year |
17.278 |
11.090 |
-- |
187.649 |
216.017 |
|
Amounts utilized against provision |
-- |
-- |
-- |
-- |
-- |
|
Unused amounts released during the year |
9.904 |
-- |
-- |
18.914 |
28.818 |
|
Carrying amount as at 31st March '06 |
81.940 |
521857 |
514.095 |
1307.389 |
2425.281 |
Incorporated in 1967, Hindustan Copper
(HCL) was to take over the copper mines and plants of the National Mineral
Development Corporation. In 1972, the then private sector Indian Copper
Corporation, incorporated in
The company suffered for long on account of the low price of the metal and the
poor grade of copper reserves in the country. After making losses till 1978-88,
HCL turned the corner in 1987-88. However, the decanalisation of copper
imports, the reduction in the duty on imported copper and the crash in the
price of the metal on the London Metal Exchange (LME) caused severe financial
problems for the company.
The expansion of Khetri Smelter which was undertaken in the year 1996,was kept
in abeyence due to shortage of finance. For the expansion of refinery from
31,000 TPA to 45,000 TPA, it had completed necessary preliminary work including
identification of equipment, scope of work of the foreign consultant M/s
Outokumpu etc. This project was dropped as directed by the Ministry due to
disinvestment proposal.
Website Details :
Management
Philosophy
Subject to the provisions of the Companies Act, 1956 &
the directives/Instructions issued by the Government from time to time and the
provisions contained in the Memorandum & Articles of Association of the
Company, the business of the Company is being managed by the Board of Directors
of the Company, who issues guide lines & formulate policies for smooth functioning
of the business. All the powers are vested with and exercised by the Board
excepting those which are specifically to be exercised by the share holders of
the Company in General Body meetings. However, for day-to-day operations, the C
M D / Functional Directors are delegated with adequate powers. The functional
Directors are, in-turn, supported by professional executives and Chiefs of
Operating Units in discharging responsibilities of their respective functional
Area.
Brief History
Subject is the sole integrated producer of primary copper in
In 1972 M/S Indian Copper Corporation Limited, Private
Sector Company, located at Ghatsila, Jharkhand with Smelter and Refinery was
Nationalized and made part of HCL. Hindustan Copper Limited developed
Malanjkhand Copper Project in Madhya Pradesh, the largest hard rock open pit
mine in the country which was dedicated to the nation on 12 th November 1982.
Further in 1990 a Continuous Cast Wire Rod plant of South Wire Technology was
commissioned at Taloja in
In the process of its multi-dimensional growth, HCL has been able to develop
expertise in exploration, mining, beneficiation, smelting and refining of
copper and recovery of by products such as Gold, Silver, Nickel Sulphate,
Copper Sulphate, Selenium, Tellurium etc.
The introduction of reform process in 1991 was a land mark
of
Subject’s shares are listed at Mumbai,
Subject was the first Indian Copper producer to get ISO-9002
certificate for its Continuous Cast Wire Rod Plant. ISO-9002 certificate has
also been awarded for its Cathode produced at its refineries at Indian Copper
Complex and Khetri Copper Complex
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.40.91 |
|
|
1 |
Rs.80.46 |
|
Euro |
1 |
Rs.54.60 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
2 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
9 |
|
--PROFITABILIRY |
1~10 |
-- |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
4 |
|
--CREDIT LINES |
1~10 |
4 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--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 |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
42 |
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 EXPLANATIONS
|
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 |
|
NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
|