%20LIMITED%2023-Mar-2007_files/image002.jpg)
MIRA
INFORM REPORT
|
Report Date : |
23.03.2007 |
IDENTIFICATION
DETAILS
|
Name : |
STERLITE INDUSTRIES (INDIA) LIMITED |
|
|
|
|
Registered Office : |
SIPCOT Industrial Complex, Madurai By Pass
Road, T V Puram P.O., Tuticorin -628 002, Tami Nadu, India |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as on) : |
31.03.2006 |
|
|
|
|
Date of Incorporation : |
08.09.1975 |
|
|
|
|
Com. Reg. No.: |
18-62634 |
|
|
|
|
CIN No.: [Company
Identification No.] |
L65990TN1975PLC062634 |
|
|
|
|
TAN No.: [Tax
Deduction & Collection Account No.] |
MUMS36821B/ MUMS22522D |
|
|
|
|
PAN No.: [Permanent
Account No.] |
AABCS4955Q |
|
|
|
|
Legal Form : |
Public limited liability company. The company’s shares are listed on the Stock Exchanges. |
|
|
|
|
Line of Business : |
Manufacturer of Telephone Cables, Copper Rods and Aluminium Rolled Products. |
RATING &
COMMENTS
|
MIRA’s Rating : |
A |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
Maximum Credit Limit : |
USD 160000000 |
|
|
|
|
Status : |
Good |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is a well-established and reputed company and a part of Sterlite
Group. The company is progressing well. Directors are reported as experienced
and respectable businessmen. Trade relations are reported as fair. Business
is active. Payments are usually correct and as per commitments. Fundamentals are strong and healthy. The company can be considered fro business dealings at usual trade
terms and conditions. The company can be regarded as promising partner in a medium to
long-run. |
LOCATIONS
|
Registered Office : |
SIPCOT Industrial Complex, Madurai By Pass
Road, T V Puram P.O., Tuticorin -628 002, Tami Nadu, India |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Head Office : |
B-10/4, Waluj MIDC Industrial Area, Waluj, Dist. Aurangabad – 431 133, Maharashtra, India |
|
Tel. No.: |
91-240-2554583/2554589 |
|
Fax No.: |
91-240-2554690 |
|
E-Mail : |
|
|
Area : |
|
|
Regional Offices : |
Northern
Regional Office |
|
Tel. No.: |
91-11-24366023 / 24365225 / 24366653 |
|
Fax No.: |
91-11-24366023 |
|
E-Mail : |
|
|
|
|
|
Regional Offices : |
Southern
Regional Offices 705, 7th Floor, North Rear Wing, Manipal
Centre, Dickenson Road, Bangalore - 560001 |
|
Tel. No.: |
9180-25559548 / 25559549 |
|
Fax No.: |
9180-25559553 |
|
E-Mail : |
|
|
|
|
|
Regional Offices : |
Eastern
Regional Office Chatterjee International Centre, 20th
Floor, 33 A Jawaharlal Nehru Road, Kolkata - 700071. |
|
Tel. No.: |
91-33-22465968 |
|
Fax No.: |
91-33-22465968 |
|
E-Mail : |
|
|
|
|
|
Regional Offices : |
Western
Regional Office Vedanta, Business Square, C Wing, 2nd
Floor.Andheri Kurla Road, Chakala, Andheri (East), Mumbai - 400 093. |
|
Tel. No.: |
91-22- 66434500 |
|
Fax No.: |
91-22-66434530 |
|
E-Mail : |
|
|
|
|
|
Corporate Office : |
Dhanraj Mahal, 5th Floor, C.S.M. Road, Appollo Bunder, Colaba, Mumbai – 400 039, Maharashtra, India |
|
Tel. No.: |
91-22-22855551/22854406 |
|
Fax No.: |
91-22-22836474 |
|
E-Mail : |
|
|
|
|
|
Corporate Office : |
92, Maker Chamber III, Nariman Point, Mumbai – 400 021 |
|
Tel. No.: |
91-22-22835261/22835316/22844864 |
|
Fax No.: |
91-22-22845015 |
|
E-Mail : |
|
|
|
|
|
Corporate Office : |
Vedanta, 75 Nehru Road, Vile Parle (East), Mumbai-400099,
Maharashtra |
|
|
|
|
Factory 1 : |
Sterlite Optical Fibres Unit: E-2, MIDC Industrial Area, Waluj, Dist - Aurangabad – 431 136, Maharashtra Tel. No. 91-240-2564599/2554079 Fax No. 91-240-2564598/2564066 E Mail sclof@giaspn01.vsnl.net.in Sterlite Telecom Cables Unit: Survey No. 209, Piparia Industrial Estate, Silvassa, (Dadra Nagar & Haveli), Union Territory Tel. No. 91-2638-241108/241113 Fax No. 91-2638-240394 Sterlite Aluminium Foils Unit: Aluminium Foils & Sheets Division Gate Nos. 924-927, Sanaswadi, Tal. Shirur, Dist. Pune – 412 208, Maharashtra Tel. No. 91-2137-252308/252309/252438/252439 Fax No. 91-2137-252407 E Mail sterlite@pn2.vsnl.net.in Jelly Filled Cables: Unit I : B-10/4, Waluj MIDC Industrial Area, Waluj, Dist. Aurangabad – 413 133, Maharashtra Unit II : Survey No. 209, Piparia Industrial Estate, Phase II, Silvassa – 396 230, Dadra & Nagar Haveli (Union Territory) Optical Fibre: E-1, MIDC Industrial Area, Waluj, Dist - Aurangabad – 431 136, Maharashtra Continuous Cast Copper Rods: Unit I : Bombay-Pune Highway, P.O. Takwe Khurd, Taluka Maval Lonavala, Dist. Pune – 410 405, Maharashtra Unit II : Survey No. 209, Piparia Industrial Estate, Phase II, Silvassa – 396 230, Dadra & Nagar Haveli (Union Territory) Copper Cathodes (Smelter): Zone A & B, Sipcot Industrial complex, Tuticorin – 628 002, Tamil Nadu Copper Cathodes (Refinery): Plot No. 1/1/2, Village Chinchpada, Silvassa – 396 230, Dadra & Nagar Haveli (Union Territory) Power
Transmission Line Aluminium Conductor: Karanjawane, Taluka Velhe, Dist. Pune – 412 305, Maharashtra Power Transmission
Line Aluminium Conductor: Rakholi, Madhuban Dam Road, Silvassa – 396 230, Dadra & Nagar Haveli (Union Territory) 7, Kirol, Vidyavihar, Mumbai-400086, Maharashtra, India SIPCOT Industrial Complex, Madurai Bypass Road, T.V. Puram P.O., Tuticorin-628002, Tamilnadu, India |
|
|
|
|
Secretarial Department : |
Solitaire Corporate Park, Business Square Centre, C Wing, 2nd Floor, Andheri Kulra Road, Chakala, Andheri (East), Mumbai-400093 |
|
Tel. No.: |
91-22-66434500 |
|
Fax No.: |
91-22-66434551 |
|
E-Mail : |
|
|
|
|
|
Branches : |
904-905, Tolstoy House, Tolstoy Marg, New Delhi – 110 001 |
|
Tel. No.: |
91-11-23736941/23351393 |
|
Fax No.: |
91-11-23355768/23736988 |
DIRECTORS
|
Name : |
Mr. Anil Agarwal |
|
Designation : |
Chairman |
|
|
|
|
Name : |
Mr. C. V. Krishnan |
|
Designation : |
Additional Director |
|
|
|
|
Name : |
Mr. Dwarka Prasad Agarwal |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Ishwarlal Patwari |
|
Designation : |
Director |
|
|
|
|
Name : |
Ms. Suvalaxmi Chakraborty |
|
Designation : |
ICICI Nominee Director |
|
|
|
|
Name : |
Mr. Navin Agarwal |
|
Designation : |
Executive Vice-Chairman |
|
|
|
|
Name : |
Mr Berjis Desai |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Sandeep Junnarkar |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Gautam Doshi |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Tarun Jain |
|
Designation : |
Whole Time Director |
|
|
|
|
Name : |
Mr. Kuldip Kumar Kaura |
|
Designation : |
Managing Director |
KEY EXECUTIVES
|
Name : |
Mr. S. Varadharajan |
|
Designation : |
Company
Secretary
|
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
|
Promoters |
87608425 |
78.40 |
|
Banks, Financial Institutions |
25681 |
0.02 |
|
Insurance Companies |
3017712 |
2.70 |
|
Mutual Funds |
2022365 |
1.81 |
|
Foreign Institutional Investors |
7267476 |
6.50 |
|
NRIs/OCBs |
217042 |
0.19 |
|
Corporates |
2486343 |
2.23 |
|
Resident Individuals (including Trust) |
8191905 |
7.34 |
|
Foreign Companies (Others) |
901310 |
0.81 |
|
Total |
111738469 |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer of Telephone Cables, Copper Rods and Aluminium Rolled Products. |
||||||||||||||||||||||
|
|
|
||||||||||||||||||||||
|
Products : |
Generic Names of Three Principal Products/Services of the company are :
|
PRODUCTION STATUS
|
Particulars |
Unit |
|
Installed
Capacity |
Actual
Production |
|
Continuous Cast Copper Rods |
MT |
|
240000 |
166497 |
|
Copper Cathodes |
MT |
|
300000 |
273048 |
|
Aluminium Cold Rolled Products |
MT |
|
20000 |
-- |
|
Sulphuric Acid |
MT |
|
1068000 |
844376 |
|
Phosphoric Acid |
MT |
|
180000 |
171893 |
|
Power Transmission Line Aluminium Conductors (AAC/ ACSR) |
KM |
|
95480 |
60777 |
GENERAL
INFORMATION
|
Suppliers : |
v Vedant Resources
Plc v Copper Mines of
Tasmania Pty Limited v Bharat Aluminium
Company Limited v Konkola Copper
Mines Plc |
||||||||||||||||||||||||||
|
|
|
||||||||||||||||||||||||||
|
No. of Employees : |
5000 |
||||||||||||||||||||||||||
|
|
|
||||||||||||||||||||||||||
|
Bankers : |
v ABN Amro Bank v Credit Lyonnais v Credit Agricole Indosuez v HDFC Bank Limited v ICICI Bank Limited v State Bank of India v The Bank of Nova Scotia v Development Bank of Singapore v Bank of Maharashtra v Bank of India v Central Bank of India v Corporation Bank v Oriental Bank of Commerce v Standard Chartered Bank v State Bank of Bikaner and Jaipur v State Bank of Hyderabad v Syndicate Bank v The Hong Kong and Shanghai Banking Corporation Limited v The ING Vysya Bank Limited v The Karur Vysya Bank Limited v Union Bank of India v City Bank v Calyon Bank v IDBI Bank v Deutsche Bank |
||||||||||||||||||||||||||
|
|
|
||||||||||||||||||||||||||
|
Facilities : |
Secured Loans
(Rs. In millions):
Unsecured Loans
:
|
|
|
|
|
Banking
Relations : |
Good |
|
|
|
|
Auditors : |
|
|
Name : |
v Charturvedi & Shah Chartered Accountants Mumbai v Das & Prasad Chartered Accountants Kolkata, West Bengal |
|
|
|
|
Memberships : |
Confederation of Indian Industry |
|
|
|
|
Holding Companies : |
v Twinstar Holding
Limited v Vedanta
Resources Holdings Limited v Vedanta
Resources Ptc. v Volcan Investments
Limited |
|
|
|
|
Associates/Subsidiaries : |
Subsidiaries : v Bharat Aluminium Company Limited v Sterlite Paper Limited v Copper Mines of Tasmania Pty Limited v Thalanga Copper Mines Pty Limited v Monte Cello BV v Sterlite Transmission Limited v Sterlite Opportunities & Ventures Limited v Sterlite Copper Limited v Hindustan Zinc Limited v Sterlite Optical Technologies Limited v The Madras Aluminium Company Limited v Sterlite International Limited v Twinstar Holding Limited Associates : v India Foils Limited v Vedanta
Alumina Limited |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
600000000 |
Equity Shares |
Rs.2/- each |
Rs.1200.000 millions |
|
111738469 |
Preference Shares |
Rs.10/- each |
Rs.300.000 millions |
|
|
Total |
|
Rs.1500.000
millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
111738469 |
Equity Shares |
Rs.5/- each |
Rs.558.700 |
|
21875000 |
1% Cumulative Redeemable Preference Shares |
Rs.10/- each |
Rs.218.800 |
|
|
Total |
|
Rs.777.500 millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
777.500 |
767.700 |
577.700 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
40446.600 |
35029.700 |
13821.700 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
41224.100 |
35797.400 |
14399.400 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
1259.200 |
6269.100 |
10799.400 |
|
|
2] Unsecured Loans |
19088.700 |
18125.900 |
13321.800 |
|
|
TOTAL BORROWING |
20347.900 |
24395.000 |
24121.200 |
|
|
DEFERRED TAX LIABILITIES |
3274.100 |
3089.900 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
64846.100 |
63282.300 |
38520.600 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
17390.700 |
15617.800 |
15283.800 |
|
|
Capital work-in-progress |
710.000 |
2533.000 |
3376.900 |
|
|
|
|
|
|
|
|
INVESTMENT |
26717.800 |
29863.300 |
16125.000 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
10191.800
|
5716.700 |
3743.400 |
|
|
Sundry Debtors |
5758.000
|
4094.700 |
3046.100 |
|
|
Cash & Bank Balances |
7937.700
|
6154.100 |
1638.900 |
|
|
Other Current Assets |
21.500
|
66.000 |
0.000 |
|
|
Loans & Advances |
12520.500
|
4985.200 |
5725.800 |
|
Total
Current Assets |
36429.500
|
21016.700 |
14154.200 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Current Liabilities |
9078.700
|
4609.100 |
10059.000 |
|
|
Provisions |
7326.600
|
1146.200 |
371.700 |
|
Total
Current Liabilities |
16405.300
|
5755.300 |
10430.700 |
|
|
Net Current Assets |
20024.200
|
15261.400 |
3723.500 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
3.400 |
6.800 |
11.400 |
|
|
|
|
|
|
|
|
TOTAL |
64846.100 |
65282.300 |
38520.600 |
|
PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
|
Sales Turnover |
75039.000 |
39916.500 |
35393.900 |
|
|
Other Income |
3694.000 |
2286.300 |
0.000 |
|
|
Total Income |
78733.000 |
42202.800 |
35393.900 |
|
|
|
|
|
|
|
|
Profit/(Loss) Before Tax |
6787.600 |
863.800 |
1967.400 |
|
|
Provision for Taxation |
1676.400 |
(200.400) |
(4.100) |
|
|
Profit/(Loss) After Tax |
5111.200 |
1064.200 |
1971.500 |
|
|
|
|
|
|
|
|
Earnings in Foreign Currency : |
|
|
|
|
|
|
Export Earnings |
42382.100 |
16541.900 |
NA |
|
|
Management Fees |
59.000 |
89.800 |
NA |
|
|
Other Earnings |
0.000 |
26.100 |
NA |
|
Total Earnings |
42441.100 |
16657.800 |
NA |
|
|
|
|
|
|
|
|
Imports : |
|
|
|
|
|
|
Raw Materials |
61544.900 |
28035.800 |
NA |
|
|
Stores & Spares |
171.200 |
124.900 |
NA |
|
|
Capital Goods |
65.500 |
176.500 |
NA |
|
Total Imports |
61781.600 |
28337.200 |
NA |
|
|
|
|
|
|
|
|
Expenditures : |
|
|
|
|
|
|
Cost of Goods Sold |
|
|
|
|
|
Manufacturing Expenses |
67021.400 |
34721.800 |
978.600 |
|
|
Administrative Expenses |
1203.700 |
1026.600 |
616.300 |
|
|
Raw Material Consumed |
NA |
NA |
23508.400 |
|
|
Purchases made for re-sale |
0.000 |
1318.200 |
NA |
|
|
Consumption of stores and spares parts |
NA |
NA |
NA |
|
|
Miscelleneous Expense |
NA |
NA |
2223.200 |
|
|
Salaries, Wages, Bonus, etc. |
464.700 |
443.000 |
318.800 |
|
|
Interest |
1203.700 |
1026.600 |
1231.400 |
|
|
Power & Fuel |
NA |
NA |
1322.500 |
|
|
Depreciation & Amortization |
1282.300 |
1140.600 |
1084.000 |
|
|
Other Expenditure |
816.000 |
545.900 |
NA |
|
|
Less : Preoperative Expenses of projects |
(65.800) |
(59.500) |
2224.900 |
|
Total Expenditure |
71945.400 |
42202.800 |
33508.100 |
|
QUARTERLY /
SUMMARISED RESULTS
|
PARTICULARS |
30.06.2006 (1st
Qtr.) |
30.09.2006 (2nd Qtr.) |
31.12.2006 (3rd
Qtr.) |
|
Sales Turnover |
23748.100 |
33091.100 |
31928.400 |
|
Other Income |
289.300 |
214.500 |
270.200 |
|
Total Income |
24037.400 |
33305.600 |
32198.600 |
|
Total Expenditure |
20616.900 |
30673.500 |
29069.600 |
|
Operating Profit |
3420.500 |
2632.100 |
3129.000 |
|
Interest |
405.400 |
434.500 |
481.600 |
|
Gross Profit |
3015.100 |
2197.600 |
2647.400 |
|
Depreciation |
331.700 |
320.700 |
332.100 |
|
Tax |
481.800 |
619.300 |
120.600 |
|
Reported PAT |
2234.900 |
1365.600 |
2147.900 |
200606 Quarter 1
Notes:
EPS is Basic and Diluted Status of Investor Complaints for the quarter
ended June 30, 2006 Complaints Pending at the beginning of the quarter 27 Complaints
Received during the quarter 17 Complaints disposed off during the quarter 37
Complaints unresolved at the end of the quarter 07 1. The above results have
been reviewed by Audit Committee. The Board of Directors at its meeting held on
July 19, 2006 approved the above results and its release. 2. The Company has
subdivided the face value of its equity share from Rs 5/- each fully paid up to
Rs 2/- each fully paid up effective from May 12, 2006 (the Record Date) and on
the same date has issued bonus shares in the ratio of 1:1. As a result, the
paid up equity share capital of the Company is Rs 1117.40 million. The Company
has redeemed the preference shares amounting to Rs 218.80 million. The
redemption premium amounting to Rs 1717.20 million has been adjusted against
Security premium account. The pro-rata dividend on Preference Shares redeemed
has been provided for. 3. In accordance with the Accounting Standard - 15
(Revised - 2005) on ''Employee Benefits'' issued by the Institute of Chartered
Accountants of India, effective from April 01, 2006, the employee benefits
mainly on account of Leave encashment has been accounted by adjusting Rs 1.40
million to the Opening balance of the General Reserve as on April 01, 2006 and
Rs 0.70 million for the quarter as a charge to the Profit & Loss account.
4. With respect to the Auditors qualification regarding no provision having
been made for diminution in the value of certain investments, loans and
guarantees, the position that the loss, if any, cannot be ascertained at this
stage remains the same. 5. Out of the total right issue proceeds of Rs 19723.00
million received in past, so far the Company has utilised Rs 9654.10 million.
Pending utilisation of the balance proceeds, the same have been temporarily
invested in short term money market instruments. 6. Turnover include benefits
on account of ''Target Plus'' scheme. 7. The Financial Results are in
accordance with the standard accounting practices followed by the Company in
preparation of its statutory accounts and have been subjected to ''Limited
Review'' by the Auditors of the Company. 8.'Others' business segment comprises
of Phosphoric Acid. 9. Previous Period/Year figures have been
regrouped/recasted wherever necessary.
200609 Quarter 2
Notes
Expenditure Includes Variation in Stock Rs 576.50 million Purchases
& Consumption of Raw Materials Rs 27348.50 million Staff Cost Rs 120.30
million Other expenses Rs 1291.50 million Tax Includes Provision for Current
Tax Rs 617.50 million Deferred Tax Rs (108.00) million Fringe Benefit Tax Rs
01.80 million EPS is Basic Status of Investor Complaints for the quarter ended
September 30, 2006 Complaints Pending at the beginning of the quarter 07
Complaints Received during the quarter 21 Complaints disposed off during the
quarter 22 Complaints unresolved at the end of the quarter 06 1. The above
results have been reviewed by Audit Committee. The Board of Directors at its
meeting held on November 15, 2006 approved the above results and its release.
2. In accordance with the Accounting Standard - 15 (Revised - 2005) on
'Employee Benefits' issued by the Institute of Chartered Accountants of India,
effective from April 01, 2006, the employee benefits mainly on account of Leave
encashment has been accounted by adjusting Rs 1.40 million to the opening
balance of the General Reserve as on April 01, 2006 and Rs 0.70 million &
Rs 5.00 million for the quarter ended June 30, 2006 & for the half year
ended September 30, 2006 respectively have been charged to the Profit &
Loss account. 3. During the quarter, the Company has written off certain
investments and loans aggregating to Rs 516.40 million and has made a provision
for any possible liability on account of guarantees given to Banks and
Financial Institutions for the loans taken by other Companies amounting to Rs
784.00 million. This resolves the Auditor's qualification in the annual
accounts of 2005-06. The same have been disclosed as Exceptional Items. 4. As
approved by the members of the Company through postal ballot, the Power
Transmission Line (PTL) division of the Company having its manufacturing
facilities at Rakholi (Silvassa, union territory) and Karanjwane (Pune,
Maharashtra) have been sold on a going concern basis to Sterlite Optical
Technologies Ltd (SOTL) at a lump sum consideration of Rs 1485.10 million, with
effect from July 01, 2006. Loss on Sale of Power Transmission line Division
amounting to Rs 36.30 million has been shown as Exceptional Items. 5. Out of
the total right issue proceeds of Rs 19723.00 million received in past, so far
the Company has utilised Rs 15721.90 million. Pending utilisation of the
balance proceeds, the same have been temporarily invested in short term money
market instruments. 6. The Financial Results are in accordance with the standard
accounting practices followed by the Company in preparation of its statutory
accounts. 7. 'Others' business segment comprises of Phosphoric Acid. 8.
Previous Period / Year figures have been regrouped / recasted wherever
necessary. As mentioned in Note 4 above, figures for the quarter ended
September 30, 2006 does not include figures in respect of Power Transmission
Line division. Hence figures for current period/s are not strictly comparable
to figures for the previous period/s.
200612 Quarter 3
Notes
Expenditure Includes Variation in Stock Rs 1824.30 million Purchases
& Consumption of Raw Materials Rs 26287.60 million Staff Cost Rs 139.60
million Other expenses( net of foreign exchange gain & losses) Rs 818.10
million Tax Includes Provision for Current Tax Rs 118.60 million Deferred Tax
Rs 46.80 million Fringe Benefit Tax Rs 2.00 million EPS is Basic Status of
Investor Complaints for the quarter ended December 31, 2006 Complaints Pending
at the beginning of the quarter 06 Complaints Received during the quarter 09
Complaints disposed off during the quarter 15 Complaints unresolved at the end
of the quarter Nil 1. The above results have been reviewed by Audit Committee.
The Board of Directors at its meeting held on January 12, 2007 approved the
above results and its release. 2. In accordance with the Accounting Standard -
15 (Revised - 2005) on Employee Benefits issued by the Institute of Chartered
Accountants of India, effective from April 01, 2006, the employee benefits
mainly on account of Leave encashment has been accounted by adjusting Rs 1.40
million to the opening balance of the General Reserve as on April 01, 2006 and
Rs 1.50 million & Rs 6.50 million for the quarter ended December 31, 2006
& for nine months ended December 31, 2006 respectively have been charged to
the Profit & Loss account. 3. In the previous quarter, (a) The Company had
written off certain investments & loans aggregating to Rs 516.40 million
and had made a provision for any possible liability on account of guarantees
given to Banks and Financial Institutions for the loans taken by other
Companies amounting to Rs 784.00 million, this resolve the Auditor's
qualification in the annual accounts of 2005-06 (b) Incurred loss on sale of
Power Transmission Line Division amounting to Rs 36.30 million. Both items have
been disclosed as 'Exceptional Items'. 4. Out of the total right issue proceeds
of Rs 19723.00 million received in past, so far the Company has utilised Rs
15721.90 million. Pending utilisation of the balance proceeds, the same have
been temporarily invested in short term money market instruments. 5. During the
quarter, the Company has successfully completed its expansion of copper
production capacities from 3,00,000 TPA to 4,00,000 TPA. 6. The Board of
Directors had recommended Interim Dividend @ 200% (Rs 4 per share face value of
Rs 2/- each) in their meeting held on November 15, 2006. Subsequently,
aggregate interim dividend amounting to Rs 2234.00 million has since been paid
on record date as at December 07, 2006. 7. During the quarter, the Sterlite
Energy Ltd has become a wholly owned subsidiary Company. 8. The Financial
Results are in accordance with the standard accounting practices followed by
the company in preparation of its statutory accounts and have been subjected to
Limited Review by the Auditors of the Company. 9. Others business segment
comprises of Phosphoric Acid. 10. Previous Period/Year figures have been
regrouped / recasted wherever necessary. On account of sale of Power
Transmission Line Division with effect from July 01, 2006, figures for current
period/s are not strictly comparable to figures for the previous period/s.
KEY RATIOS
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
Debt-Equity Ratio |
0.58 |
0.97 |
1.54 |
|
Long Term Debt-Equity Ratio |
0.56 |
0.93 |
1.45 |
|
Current Ratio |
1.91 |
1.65 |
1.11 |
|
TURNOVER RATIOS |
|
|
|
|
Fixed Assets |
3.16 |
1.87 |
1.48 |
|
Inventory |
9.73 |
8.74 |
8.50 |
|
Debtors |
15.71 |
11.58 |
12.88 |
|
Interest Cover Ratio |
6.60 |
3.01 |
2.51 |
|
Operating Profit Margin(%) |
11.99 |
10.46 |
14.17 |
|
Profit Before Interest And Tax Margin(%) |
10.33 |
7.70 |
10.64 |
|
Cash Profit Margin(%) |
8.26 |
8.05 |
9.94 |
|
Adjusted Net Profit Margin(%) |
6.60 |
5.29 |
6.42 |
|
Return On Capital Employed(%) |
13.14 |
6.45 |
9.58 |
STOCK PRICES
|
Face Value |
Rs.10.00/- |
|
High |
Rs.(0.01) |
|
Low |
Rs.(0.01) |
LOCAL AGENCY
FURTHER INFORMATION
HISTORY
The company was incorporated on 8th September 1975 at Aurangabad
in Maharashtra under the name and style of Rainbow Investments Limited having
Company Registration Number 30217. Subsequently, the name of the company was
changed to Sterlite Cables Limited w.e.f. 19th October, 1976. On 28th
February, 1986 the name of the company was changed to present.
Sterlite Industries India Ltd (SIIL), a part of Anil Agarwal
group is one of the major players in Copper industry. Twinstar Holdings Ltd,
Mauritius is the parent company of SIIL by holding 51% Equity in the latter.
SIIL inturn controls Bharat Aluminium Company Ltd (Balco) and Hindustan Zinc
Ltd (HZL). The Indian Promoters Madras Aluminium Company Ltd (Malco) currently
holds 7.13 percent in SIIL.
Originally incorporated as Rainbow Investments in 1975, the name of the company
was changed to Sterlite Cables in 1976. It acquired its present name - Sterlite
Industries (India), in 1986. The company manufactures polyethylene-insulated
jelly-filled (PIJF) telecommunication cables and continuous cast copper rods
(CCR). It caters to the requirements of the telecom, power, electrical and
cable industries. The PIJF plant at Aurangabad was set up in technical
collaboration with the Essex group, US. The CCR plant with an installed
capacity of 12,000 tpa was set up in 1990, with imported technology and
equipment from Continuous, Italy, and La Farga Lacambra, Spain, to manufacture
CCR from copper scrap.
The company also manufactures aluminium cold-rolled products with technical
know-how from J W Aluminium, US. During 1994, it entered into the manufacture
of optical fibres, the basic raw material for optical fibre cables. This
project was promoted through Sterlite Communications (SCL), a subsidiary, in
technical collaboration with the Nokia group, Finland - leaders in the telecommunication
sector. In 1998-99, the paper project was spun-off into a 100% subsidiary
company - Sterlite Paper and the commissioning of new power projects and
development of the national grid increased the need for developed power
transmission network, increasing demand for aluminiumconductors.
The company's telecom business was transferred to the new telecom company
rechristened as Sterlite Optical Technologies Ltd (SOTL). In terms of the
Scheme of arrangement, the Telecom company was alloted one equity share of the
face value of Rs 5/- each for every one fully paid-up equity share of Rs 10/-
held by every member of Sterlite Industries (India) Ltd. It alloted 90,00,000
equity shares of Rs.10/- each at a premium of Rs.171/- per share aggregating to
Rs.1629.000 millions on preferential allotment of shares against exercise of
the warrants issued by the company in June, 1998.
The company had in its Rs 5515.000 millions bid for 51% stake of Balco. It
plans to make Balco the lowest cost aluminium producer over the next three
years. The company will make substantial investment to make Balco a world class
benchmark producer. Company's vision to acquire Balco is to convert it into a
platform to move on and take on the international market. The company will soon
appoint an international consultant to undertake a feasibility study for
reaching an exact estimate of quantum of investments to be made in Balco.
To reduce dependence on external sources and to ensure consistent supplies of
good quality copper concentrate, the company acquired two copper mines in
Australia through 100% of the equity of their holding company, Monte Cello
Corporation, B V, Netherlands. In the fiscal 2001, the company received ISO
14001 certification for environment management at copper smelter by Det Norske
Veritas B V, Netherlands and national award for "Excellence in Energy
Conservation" from the Confederation of Indian industry and National
Safety Award from the British Safey Council.
During March 2002, the company took a 26% stake in Hindustan Zinc from
Government of India at a price of Rs 4450 million acquired through Sterlite
Opportunities and Ventures Ltd., a special purpose vehicle set up for the same.
The company had completed the debottlenecking of its facilities,resulting in
the expansion of Copper Capacity from 150,000 MT to 165,000 MT in 2001-02 and
is proposing to enhance the capacity to 3,00,000 MT. The project is expected to
be completed in the last quarter of 2003-04. Since the major global copper
players are having their capacities from 500,000 MT p.a.onwards the company is
very imperative in reaching the same.
Proposed expansion plan for enhancement of aluminium capacity from 100,000 MT
p.a to 355,000 MT p.a for BALCO,Captive power plant with an installed capacity
of 540 MW. In Hindustan Zinc Ltd the zinc capacity will be enhanced from
170,000 MT p.a to 400,000 MT p.a approximately. SIIL is also planning to
Restruturing its business under the Scheme of Arrangement by which,the Company
would separate the copper business and carry the same business in a separate
company. For this a 100% subsidiary company was incorporated viz Sterlite
Copper Ltd. The shareholders have approved the scheme of arrangement and the
same has been filed in the High Court of Mumbai and Chennai.
During 2001-02 the company embarked on a capital restructuring exerise whereby
the company will purchase from its existing shareholders upto 50% of its
existing equity share capital at a consideration of Rs.150 per fully paid up
equity share. The same was approved by the Board and Hon'ble High Court of
Mumbai and accordingly the company has purchased 2,00,68,004 equity shares and
the same has been cancelled on 26th August 2002.
BUSINESS
The company is engaged in manufacturing of telephone cables, copper rods
and aluminium rolled products.
The product range includes Continuous Cast Copper Rods, Copper Cathodes,
Aluminium Cold Rolled Products, Power Transmission Line Aluminium Conductors,
Phosphoric Acid and Sulphuric Acid.
Financial Review
The company reported a record performance during the year under review:
Gross turnover increased 85% from Rs. 42790 million in 2004-05 to Rs.
79230 million in 2005-06 « PBIDTA increased 107% from Rs. 4480 million in 2004-05
to Rs. 9270 million in 2005-06 « Net profit increased 380% from Rs. 1060
million to Rs. 5110 million.
This attractive increase in revenues is primarily attributed to the
following reasons:
v
H 58% increase in copper sales from 1,71,860 tonnes in 2004-05 to
2,71,624 tonnes in 2005-06
v
54% increase in phosphoric acid sales from 1,09,243 tonnes in 2004-05 to
1,68,317 tonnes in 2005-06
v
H Higher and better TC/RC realisations
v
Enhanced TC/RC along with growth in volumes due to faster ramp up of
expansions contributed to improved smelter performance. TC/RC realizations
increased substantially from 8.6 cents/lb in 2004- 05 to 23.1 cents/lb. There
was a pressure on operating costs due to a steep increase in the cost of fuel
and input chemicals and consumables, which was more than offset by higher
prices and volumes leading to a better PBIDTA for 2006.
Finance
The long-term loan of US$ 25 million taken from UBI was repaid during
the year. The company refinanced its secured floating rate notes to the extent
of US$ 50 million through unsecured External Commercial Borrowings yielding
lower spreads compared with the original borrowing.
There were no fresh major long-term borrowings during the year. Despite
an increasing interest rate scenario within India and globally, the interest
cost of the company was controlled through a judicious mix of rupee and short
term foreign currency borrowings. The company continued to enjoy CRISIL's
highest rating of P1+ for its short-term borrowings and AA rating for its
long-term borrowings.
Operational
overview
2006 was a landmark year for the company. The company completed major
expansions like 1,20,000 tpa of copper smelting, 1,20,000 tpa of copper
refinery and 90,000 tpa of the copper rod plant, following which its annual smelting
capacity increased to 3,00,000 tonnes.
They produced 2,73,048 tonnes of cathodes, an increase of 59°/o over the
previous year. From these 1,66,497 tonnes of copper rods were produced, an
increase of 33°/o over the previous year. There was a focus on increasing the
production of value-added copper rods, which was 61% of the total production
during 2005-06. As planned, a maintenance shut down of the Tuticorin smelter
for 21 days was completed in April 2006 following which the'smelter was
re-commissioned. The production of phosphoric acid increased by 64°/o from
1,04,902 tonnes to 1,71,893 tonnes and of sulphuric acid by 54 °/o from
5,46,647 tonnes to 8,44,376 tonnes during 2005-06.
During the year under review the company consolidated its leadership
position within India with record 1,06,279 tonnes sales of copper with a market
share of 26%. The company exported 1,65,354 tonnes of copper (previous year
89,296 tonnes), a growth of 85%. Exports included 79,350 tonnes of copper rods
against 56,061 tonnes in the previous year. The Middle East, China, Japan,
Philippines and Thailand were the key export markets and they continue to
develop a larger customer base for the export of copper rods.
Recognition
The company's pursuit of excellence in the areas of operations, safety,
environment, energy conservation, research and development, human resources as
well as community social responsibility was widely recognised, which included
the following
v
National Award for Excellence in Energy Management for 2005 from the
Confederation of Indian Industries (Cll)
v
Tamil Nadu Cultural Academy Social Service Award for exemplary social
service in Tuticorin district in 2005
v
Award by Tuticorin Port Trust for excellent traffic performance during
2004-05
v
Awarded Best Corporate Blood Donor in the District of Tuticorin by the
Tuticorin Blood Donors Club in association with the Tamil Nadu Voluntary Health
Association
v
Ranked third in Human Resources Metrics in the Best Companies to Work
For in India 2005 in a Business Today study
v
The Chinchpada unit upgraded from ISO 14001: 1996 to ISO 14001:2004
standards' the unit was also certified for ISO 9001: 2000 and OHSAS 18001: 1999
v
The Chinchpada laboratory was accredited to NABL (National Accreditation
Board for Calibration and Testing Laboratories)
v
Qualtech Prize 2005 to the Silvassa unit for manufacturing improvements
reflected in the reduction in de-tellurisation batch time by Quimpro, Mumbai.
Group structure
The Agarwal Group, being a group defined under the Monopolies and
Restrictive Trade Practices Act, 1969, controls the company. A list of its
group entities is given below:
v
Volcan Investments Limited, Bahamas
v
Twinstar Holdings Limited, Mauritius
v
Vedanta Resources pic, United Kingdom
v
Vedanta Resources Holdings Limited, United Kingdom
v
Mr. Dwarakaprasad Agarwal
v
Mr. Agnivesh Agarwal
The company’s fixed assets of important value include Land, Buildings,
Plant & Machinery, Furniture & Fixtures, Data Processing Equipments,
Office Equipments, Electrical Fittings and Vehicles.
The company employs around 5,000 persons in its set-up.
Sterlite Industries India Ltd (SIIL), a part of Anil Agarwal
group is one of the major player in Copper industry. Twinstar Holdings Ltd,
Mauritius is the parent company of SIIL by holding 51% Equity in the later.
SIIL inturn controls Bharat Aluminium Company Ltd (Balco) and Hindustan Zinc
Ltd (HZL). The Indian Promoters Madras Aluminium Company Ltd (Malco) currently
holds 7.13 percent in SIIL.
Originally incorporated as Rainbow Investments in 1975, the name of the company
was changed to Sterlite Cables in 1976. It acquired its present name - Sterlite
Industries (India), in 1986. The company manufactures copper cathodes and
continuous cast copper rods (CCR): Sulphuric Acid, Phosphoric Acids, Phospho
gypsum, Hydro Fluo Silicic Acid and Granulated Slag. The CCR plant with an
installed capacity of 12,000 tpa was set up in 1990, with imported technology
and equipment from Continuous, Italy, and La Farga Lacambra, Spain, to
manufacture CCR from copper scrap.
The company also manufactures aluminium cold-rolled products with technical
know-how from J W Aluminium, US. During 1994, it entered into the manufacture
of optical fibres, the basic raw material for optical fibre cables. This
project was promoted through Sterlite Communications (SCL), a subsidiary, in
technical collaboration with the Nokia group, Finland - leaders in the
telecommunication sector. In 1998-99, the paper project was spun-off into a
100% subsidiary company - Sterlite Paper and the commissioning of new power
projects and development of the national grid increased the need for developed
power transmission network, increasing demand for aluminium conductors.
The company's telecom business was transferred to the new telecom company
rechristened as Sterlite Optical Technologies Ltd (SOTL). In terms of the
Scheme of arrangement, the Telecom company was alloted one equity share of the
face value of Rs 5/- each for every one fully paid-up equity share of Rs 10/-
held by every member of Sterlite Industries (India) Ltd. It alloted 90,00,000
equity shares of Rs.10/- each at a premium of Rs.171/- per shares aggregating
to Rs.1629 millions on preferential allotment of shares against exercise of the
warrants issued by the company in June, 1998.
The company had in its Rs 5515 cr bid for 51% stake of Balco. It plans to make
Balco the lowest cost aluminium producer over the next three years. The company
will make substantial investment to make Balco a world class benchmark
producer. Company's vision to acquire Balco is to convert it into a platform to
move on and take on the international market. The company will soon appoint an
international consultant to undertake a feasibility study for reaching an exact
estimate of quantum of investments to be made in Balco.
To reduce dependence on external sources and to ensure consistent supplies of
good quality copper concentrate, the company acquired two copper mines in
Australia through 100% of the equity of their holding company, Monte Cello
Corporation, B V, Netherlands. In the fiscal 2001, the company received ISO
14001 certification for environment management at copper smelter by Det Norske
Veritas B V, Netherlands and national award for 'Excellence in Energy Conservation'
from the Confederation of Indian industry and National Safety Award from the
British Safey Council.
During March 2002, the company took a 26% stake in Hindustan Zinc from
Government of India at a price of Rs 445 million acquired through Sterlite Opportunities
and Ventures Ltd., a special purpose vehicle set up for the same.
Proposed expansion plan for enhancement of aluminium capacity from
135,000 tpa to 385,000 tpa for BALCO,Captive power plant with an installed
capacity of 540 MW. This is expected to be commissioned in March 2006. SIIL is
also planning to Restruturing its business under the Scheme of Arrangement by
which, the Company would separate the copper business and the carry the same
business in a separate company. For this a 100% subsidiary company was
incorporated viz Sterlite Copper Ltd. The shareholders have approved the scheme
of arrangement and the same has been filed in the High Court of Mumbai and
Chennai.
During 2001-02 the company embarked on a capital restructuring exerise whereby
the company will purchase from its existing shareholders upto 50% of its
existing equity share capital at a consideration of Rs.150 per fully paid up
equity share. The same was approved by the Board and Hon'ble High Court of
Mumbai and accordingly the company has purchased 2,00,68,004 equity shares and
the same has been cancelled on 26th August,2002.
In February 2004 the company issued bonus equity shares to its shareholders in
the ratio of 1:1.
During 2004-05 the company has increased its installed capacity of Phosphoric
Acid, Sulphuric Acid and Power Transmission Line-Aluminium Conductor by 55000
MT, 615000 MT and 13420 MT respectively. With this expansion the total
installed capacity of Phosphoric Acid, Sulphuric Acid and Power Transmission Line-Aluminium
Conductor has increased to 180000 MT, 1050000 MT and 73000 MT respectively.
The company has commissioned the expanded capacity made to the company's
Tuticorin plant in the state of Tamilnadu and additional smelting line has
increased capacity of copper cathodes to 300000 tpa. Further the company is
building a new power plant with a capacity of 22.5 MW to provide power for the
new smelter along with a 10 MW plant generating power from waste heat capture.
Also in addition a An increase of existing infrastructure also accompained the
increased smelter capacity.new phosphoric acid plant and refinery is also
constructed which is built along the same lines as the Silvassa Operation and
will accommodate in excess of 125000 tpa of anode. The inclusion of a refinery
at the Tuticorin site is the beneficial step in the integration of the copper
operation as it will greatly reduce the freight cost and increase returns from
the new projects.
Further the company has completed its expansion of 170000 tpa Hydrometallurgy
based Zinc smelting facility supported by a new 154 MW Captive Power plant at
Chanderiya and also expanded output of 3.75 million tpa at Rampura Agucha Mine
for Hindustan Zinc Ltd.
During the year 2004-05, following the further issue of share capital by
Vedanta Alumina Ltd, the shareholding of the company has been reduced to 29.5%.
Consequently Vedanta Alumina Ltd has ceased to be a subsidiary company.
During July 2004 the company came out with rights issue of equity shares
in the ratio of 1:2 at a premium of Rs.545 per share. With this Rights issue
the Share capital of the company has increased by 35860049 equity shares of
Rs.5 each aggregating to Rs.179.3 millions and the amount of Rs.19543.7
millions was added to the share premium account of the company.
Website
Details :
Sterlite Industries (India) Ltd. (SIIL) is the
principal subsidiary of the Vedanta Resources Group. It was the first company
in India to set up a Copper Smelter and Refinery in Private Sector and operate
the largest capacity continuous Cast Copper Rod plants. SIIL’s main products,
Copper Cathodes and Copper Rods meet global quality benchmarks.
SIIL’s performance makes it one of the fastest-growing companies with
sales increasing from Rs.9220 million (US$ 217 Mn) in 1997-98 to Rs.67,921
million (US$ 1,527 Mn) in 2005 - 2006, recording a CAGR of 28%.
SIIL’s consistent product quality and high standard of customer service
has earned it an enviable 43% share in the domestic market by volume in 2005 - 06.
The hallmark of its success has been the stress on quality and constant
benchmarking with the best in the world, giving it the distinction of being a
low-cost, high quality, high-efficiency producer by global standards.
SIIL places a very strong emphasis on the
following:
Quality Assurance
All SIIL facilities are equipped with the latest technology backed by thorough
quality assurance systems. This is evident from the fact that SIIL is an ISO
14001 (1996), OHSAS 18001 (1999) and ISO 9001 (2000) certified organization.
People
At SIIL, people are its major strength, helping transform the SIIL
vision into reality. Attracting, nurturing and retaining the best and the
brightest are the cornerstone of its HR policy.
State-of-the-art-Technology
SIIL constantly endeavours to keep ahead of the Technology curve. Constantly
investing in the latest in Technology and Innovation, SIIL facilities are
comparable with the best in the world.
Environmental Consciousness
As part of its growth, SIIL will focus on environment protection. Investing in
environment friendly technology, SIIL has carried out extensive work including
setting up a 5000 cubic meters capacity Rainwater Harvesting System and
extending the Green Belt around its facilities extensively.
Social Consciousness
SIIL operates with a Social Consciousness. There are several initiatives
undertaken to give back to society. SIIL takes its role as a Responsible
Corporate Citizen very seriously.
Growth
Growth is a way of life at SIIL. This is visible in the achievements over the
last 5 years. SIIL has gone from strength to strength and continues to look for
new opportunities to achieve returns and active growth.
Mines
SIIL
owns two mines which together supplied 127,196 tons of concentrate in 2005 -
06. However, one of its mines has closed since July 2005.
Smelter
The
Smelter at Tuticorin, Tamilnadu is based on a proven energy efficient and
environment friendly technology, IsaProcess™ from MIM, Australia.
Refinery
The
anode produced by the smelter is processed in the Refinery at Dadra Nagar
Haveli, Silvassa using IsaProcess™ sourced from MIM, Australia. The copper
cathodes produced are LME ‘A’ grade certified. A new refinery also using the
IsaProcess™ is being added at Tuticorin for scaling up operations.
Copper Rods Plant
State-of-the-art
continuous cast copper rod plant based on technology and equipment from
Continuous Properzi, Italy produces continuously cast copper rods, meeting
stringent quality and performance standards.
Sulphuric Acid Plant
The
Sulphuric Acid Plant, with designed capacity to produce 1,068,000 tonnes of
Sulphuric acid per annum, is set up with basic engineering from Kvaerner
Chemetics, Canada.
Phosphoric Acid Plant
The
phosphoric acid plant with HDH process has a production capacity of 180,000
tonnes per annum. Technology and basic engineering for this plant has been
sourced from Hydro Agri International, UK.
Highlights
v
First private sector smelter in India
v
Went on stream in a record period of two years, fully stabilized and
operating at rated capacity.
v
State-of-the-art technology. New ISA™ incorporates waste heat recovery
boiler.
v
ISA WHRB - Free Power Generation from Off gases, Low gas volume per ton
of concentrate, Good hygiene -Less Air Ingress
v
An ISO 9001:2000, ISO 14001 and OHSAS 18001 Certified Organization.
v
TQM as a way of life for Continual Improvements and Employee engagement
v
First Copper Smelter in the world to be accredited with “Five Star”
rating by British Safety Council.
v
Extensive use of TQM to constantly reach new frontiers of excellence and
maximize employee involvement.
v
Star Trading House status awarded for Export.
v
Currently 11% of copper requirement met by captive mines.
v
Zero-effluent discharge systems integrated at every plant.
v
First company in South India to go in for a secured land fill.
v
Dominant market shares in the various segments of copper consumption.
v
Won the National Award in Excellence in Energy Management for the last
six years in a row.
v
Winner of the Green Tech Safety Award-Silver for best practices in Fire
& Safety from Green Tech foundation in the Metals & Mining Sector for
the Year 2005
v
Winner of the International Safety Award from British Safety Council for
the Year 2005
CMT REPORT (Corruption,
Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts, India Prisons Service,
Interpol, etc.
1] INFORMATION ON
DESIGNATED PARTY
No 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.43.39 |
|
UK Pound |
1 |
Rs.85.16 |
|
Euro |
1 |
Rs.57.60 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
9 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
8 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT LINES |
1~10 |
8 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NNO |
|
--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 |
|
68 |
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 |
|