MIRA
INFORM REPORT
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Report Date : |
23.05.2007 |
IDENTIFICATION DETAILS
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Name : |
GUJARAT
NRE COKE LIMITED |
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Registered Office : |
22, |
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Country : |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
29.01.2001 |
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Com. Reg. No.: |
21-40098 |
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CIN No.: [Company
Identification No.] |
L51909WB1986PLC040098 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
CALM01769F |
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PAN No.: [Permanent
Account No.] |
AABCG6225H |
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Legal Form : |
A
public limited liability company. The company's shares are listed on the
Stock Exchange. |
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Line of Business : |
Subject
is engaged in the business of coal processing, manufactures low-ash metallurgical
coke (LAMC). LAMC mainly used in soda-ash plants, cast, iron and brass
foundries and the best furnaces of steel plants is largely imported into |
RATING & COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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 |
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Maximum Credit Limit : |
USD 20000000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a
well-established and reputed company having fine track. Directors are
reported as experienced, respectable and having satisfactory means of their
own. Their trade relations are reported as fair. Business is active. Payments
are usually correct and as per commitments. The company can
be considered good for normal business dealings at usual trade terms and
conditions. |
LOCATIONS
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Registered Office : |
22, |
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Tel. No.: |
91 - 33 - 22891471-75 |
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Fax No.: |
91 - 33 - 22891470 |
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E-Mail : |
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Website : |
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Corporate Office : |
73, |
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Tel. No.: |
91-79-26843438 /
26852068 |
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Fax No.: |
91-79-26843437 |
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E-Mail : |
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Factory 1 : |
Dharampur, Khambhalia, |
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Factory 2 : |
Lunva, Bhachau, Kutch, Gujarat – 370140, |
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Branch Office : |
225 C, |
DIRECTORS
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Name : |
Mr. Gulshan Lai Tandon |
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Designation : |
Chairman Emeritus |
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Name : |
Mr. Girdharilal Jagatramka |
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Designation : |
Chairman |
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Name : |
Mr. Arun Kumar Jagatramka |
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Designation : |
Vice Chairman & Managing Director |
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Name : |
Mr. Subodh Kumar Agarwal |
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Designation : |
Director |
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Name : |
Mr. Chinubhai R. Shah |
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Designation : |
Director |
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Name : |
Dr. Basudeb Sen |
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Designation : |
Director |
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Name : |
Dr. Mahendra Kumar Loyalka |
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Designation : |
Director |
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Name : |
Mr. Murari Sananguly |
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Designation : |
Director |
KEY EXECUTIVES
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Name : |
Mr.
Sumit Kumar Khetan |
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Designation : |
President
and Company Secretary |
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Name : |
Mr.
Manish Lohia |
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Designation : |
Chief Financial Officer |
SHAREHOLDING PATTERN
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
|
Promoters &
Persons Acting in Concert |
4,62,36,490 |
46.58 % |
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Financial
Institutions, Banks, Mutual Funds, etc. |
43,05,939 |
4.34 % |
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FIIs ' |
58,12,657 |
5.85 % |
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Indian Public
(Including Private Corporate Bodies) |
4,12,06,453 |
41.51 % |
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NRIs |
8,34,629 |
0.84 % |
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Clearing Members |
8,72,648 |
0.88 % |
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Total |
9,92,68,816 |
100.00 % |
BUSINESS DETAILS
|
Line of Business : |
Subject
is engaged in the business of coal processing, manufactures low-ash
metallurgical coke (LAMC). LAMC mainly used in soda-ash plants, cast, iron
and brass foundries and the best furnaces of steel plants is largely imported
into |
PRODUCTION STATUS
|
Particulars |
Unit |
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Installed
Capacity |
Actual
Production |
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Low-Ash Metallurgical Coke |
M.T. |
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682000.000 |
583842.005 |
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Rolled & Alloy Steel Products |
M.T. |
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311000.00 |
3353.687 |
GENERAL INFORMATION
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No. of Employees : |
600 |
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Bankers : |
v
State Bank of v
Bank of v
State Bank of Saurashtra v
Punjab National Bank v
Development Credit Bank Limited v
ING Vysya Bank Limited v
The Hongkong and Shanghai Banking
Corporation Limited v
Yes Bank Limited v
State Bank of |
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Facilities : |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
N. C.
Banerjee & Company Chartered
Accountants |
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Address : |
2, |
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Group Company : |
Gujarat
NRE Power Limited |
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Associates: |
Ø
Madhur Coal Mining Private Limited Ø
Critical Mass Multilink Private Limited Ø
Gujarat NRE Energy Resources Limited Ø
Fast Capital Securities Limited Ø
Bulli Coke Private Limited Ø
Bellambi Coke Private Limited Ø Vartika Traders
Private Limited |
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Subsidiaries |
Ø
Gujarat NRE Australia Pty Limited NRE No. 1 Colliery, Princess Highway, Cnr Bellambi Lane, Russell Vale 2517
NSW, Australia. Ø
Gujarat NRE FCGL Pty Limited NRE No. 1 Colliery, Princess Highway, Cnr Bellambi Lane, Russell Vale
2517 NSW, Australia. Ø
Bharat NRE Coke Limited 22, Camac Street, Block 'C, 5th Floor, Kolkata-700 016, |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
25,00,00,000 |
Equity Shares |
Rs. 10/- each |
Rs. 2500.000 Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
9,92,68,816 |
Equity Shares |
Rs. 10/- each |
Rs. 992.688 millions |
|
20684205 |
Equity Shares |
Rs. 10/- each |
Rs. 206.842 Millions |
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Total |
|
Rs. 1199.530 Millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2006 (18 Months) |
30.09.2004 (12 Months) |
30.09.2003 (12 Months) |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
1199.530 |
471.594 |
274.400 |
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2] Deposit against
Share Warrants |
101.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
3936.412 |
799.116 |
204.000 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
5236.942 |
1270.710 |
478.400 |
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LOAN FUNDS |
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1] Secured Loans |
2707.217 |
464.874 |
73.200 |
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2] Unsecured Loans |
0.000 |
56.116 |
0.000 |
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TOTAL BORROWING |
2707.217 |
520.990 |
73.200 |
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DEFERRED TAX LIABILITIES |
582.498 |
125.924 |
0.000 |
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Foreign Currency Convertible Bonds |
2399.650 |
0.000 |
0.000 |
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TOTAL |
10926.307 |
1917.624 |
551.600 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
3694.477 |
750.999 |
286.800 |
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Capital work-in-progress |
15.545 |
202.133 |
64.500 |
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INVESTMENT |
4947.508 |
66.556 |
0.000 |
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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 |
1492.210
|
1130.175 |
344.200 |
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Sundry Debtors |
829.076
|
499.549 |
125.500 |
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Cash & Bank Balances |
482.107
|
622.423 |
109.000 |
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Other Current Assets |
0.000
|
0.000 |
0.000 |
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Loans & Advances |
1210.508
|
207.401 |
22.200 |
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Total Current Assets |
4013.901
|
2459.548 |
600.900 |
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Less : CURRENT LIABILITIES & PROVISIONS |
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Current Liabilities |
1172.758
|
1235.211 |
344.100 |
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Provisions |
631.877
|
326.961 |
57.300 |
|
Total Current Liabilities |
1804.635
|
1562.172 |
401.400 |
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Net Current Assets |
2209.266
|
897.376 |
199.500 |
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MISCELLANEOUS EXPENSES |
59.511 |
0.560 |
0.800 |
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TOTAL |
10926.307 |
1917.624 |
551.600 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
31.03.2006 (18 Months) |
30.09.2004 (12 Months) |
30.09.2003 (12 Months) |
|
Sales Turnover [including other income] |
8382.937 |
3601.982 |
1224.200 |
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Profit/(Loss)
Before Tax |
3862.762 |
1282.889 |
181.600 |
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Provision for
Taxation |
742.843 |
375.115 |
14.900 |
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Profit/(Loss)
After Tax |
3119.919 |
907.774 |
166.700 |
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Export Value |
1199.218 |
334.712 |
NA |
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Import Value |
3318.345 |
1310.705 |
NA |
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Total Expenditure |
4087.671 |
1334.097 |
984.900 |
SUMMARISED RESULTS
|
PARTICULARS |
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|
31.03.2007 |
|
Type |
|
|
Full
Year |
|
Sales
Turnover |
|
|
5132.800 |
|
Other
Income |
|
|
212.800 |
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Total
Income |
|
|
5345.600 |
|
Total
Expenditure |
|
|
4154.700 |
|
Operating
Profit |
|
|
1190.900 |
|
Interest |
|
|
236.900 |
|
Gross
Profit |
|
|
954.000 |
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Depreciation |
|
|
206.500 |
|
Tax |
|
|
85.300 |
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Reported
PAT |
|
|
567.500 |
|
Dividend
(%) |
|
|
00.000 |
KEY RATIOS
|
PARTICULARS |
31.03.2006 (18 Months) |
30.09.2004 (12 Months) |
30.09.2003 (12 Months) |
|
Debt
Equity Ratio |
0.88 |
0.34 |
0.24 |
|
Long
Term Debt Equity Ratio |
0.90 |
0.33 |
0.18 |
|
Current
Ratio |
1.53 |
1.45 |
1.45 |
|
TURNOVER
RATIOS |
|
|
|
|
Fixed
Assets |
1.54 |
4.49 |
4.09 |
|
Inventory
|
2.82 |
3.87 |
4.65 |
|
Debtors |
5.56 |
9.13 |
10.75 |
|
Interest
Cover Ratio |
10.60 |
37.45 |
5.59 |
|
Operating
Profit Margin (%) |
32.29 |
47.45 |
17.05 |
|
Profit
Before Interest and Tax Margin (%) |
30.54 |
46.22 |
15.76 |
|
Cash
Profit Margin (%) |
24.07 |
33.07 |
13.17 |
|
Adjusted
Net Profit Margin (%) |
22.32 |
31.83 |
11.88 |
|
Return
on Capital Employed (%) |
18.83 |
112.57 |
44.06 |
|
Return on Net Worth (%) |
26.58 |
103.80 |
41.00 |
STOCK PRICES
|
Face Value |
Rs.10/- |
|
High |
Rs.34.95/- |
|
Low |
Rs.32.85/- |
LOCAL AGENCY FURTHER INFORMATION
Fixed
Assets
Ø
Land & Buildings
Ø
Plant & Machineries
Ø
Office Equipment
Ø
Furniture & Fixture
Ø
Material Handling
Ø
Equipments / Vehicles
Ø
Weighing Machine
Ø
Electrical Installations
Ø
Wind Turbine Generator
History
Gujarat NRE Coke, engaged in the business of coal processing,
manufactures low-ash metallurgical coke (LAMC). LAMC, mainly used in soda-ash
plants, cast iron and brass foundries and the blast furnaces of steel plants,
is largely imported into
It came out with a public issue in May.'94 to part-finance its low-ash
metallurgical coke-manufacturing project (inst cap: 13000.0 Millions tpa till
30 September, 2001) at
The company meets its requirements of low-ash content coking coal (yield is
around 78-80%) through imports from
The company has expanded the installed capacity of Low Ash Metallurgical Coke
(LAMC) during the year 2003-04 by 258000 MT and with this expansion, the total
capacity has risen to 502000 MT.
The company has amalgamating Aparna Project Private Limited with itself during
August 2004 and according to the scheme of arrangement, Two Equity Shares of
Rs.10/- each of Gujarat NRE Coke have been issued for every
Three Equity Shares of Rs.10/- each held by the shareholders of Aparna Project Private Limited
BUSINESS
Subject
manufacturers of low-ash metallurgical coke, is considering merger of group
company. Gujarat NRE Power Limited into itself after the current accounting
year, which will end on September 30, 2002.
At
present, the company holds 4% in Gujarat NRE Power. The company's promoters are
holding about 60% and the rest mostly by the shareholders of the company. The
company may carry out a corporate merger of these two companies by issuing
shares of the company to the shareholders of the other company
The
company has its manufacturing facility at
A part
of the total manufacturing facility is owned by the Gujarat NRE Power
Limited. Hence to integrate the existing
infrastructure the company can merge the two companies.
Financial Results/Highlights
The Company has changed its financial year from 'October-September' to
'April-March' by extending its current financial year comprising 18 months
ended 31.03.2006. Accordingly, the term 'period under review' mentioned in this
report should be construed as 18 months period starting from 01.10.2004 and
ending on 31.03.2006, unless otherwise specifically indicated or the context
provides otherwise.
Further, the financial figures of the period under review comprises of the
figures of erstwhile FCGL Industries Limited, which has been merged with the
Company as per the Order passed by the Hon'ble High Court at Calcutta dated
19.04.2006, with effect from the appointed date i.e. 01.10.2004. Hence, the
figures of the period under review may not be comparable with those of the
previous year.
Review of Operations
Net Sales grew from Rs. 2852.1 Millions in 2003-04 to Rs.
5537.4 Millions in period under review ending on 31.03.2006 and the bottom line
exhibited more than 129% increase from Rs. 907.8 Millions to Rs.3119.9 Millions
during the period under review on annualized basis. The export of Met Coke has
increased from 20901 MT to 102191 MT during the period under review after the
company became the only manufacturer exporter of met coke from
The improved performance was due to a prudently-timed capacity expansion,
consolidation of presence, consistent quality control and the reliability of
maintaining supply. Long-term agreements with raw material suppliers and
ship-owners not only ensured regular supplies leading to targeted production
but also helped de-risk the company from significant cost variations.
Bonus Issue
In attempt to continuously align its paid-up capital with its growing scale and
also distribute profits judiciously, the Company is prompting the issue of
bonus shares at periodic intervals. The company had issued bonus shares for the
3rd year in succession during the month of February 2005. Further,
the directors are pleased to recommend the fourth successive issue of bonus
shares in the ratio of one share for every one share held.
Issue of FCCB
The Company had issued Unsecured 1% Foreign Currency Convertible Bonds (FCCBs)
due 2010 amounting to USD 55 million (including USD 5 million under green-shoe
option) in March 2005. In April 2006, the Company again successfully issued
another tranche of Zero Coupon Unsecured FCCBs due 2011 amounting to USD 60
million (including USD 10 million under green-shoe option) for its various
expansion programmes in India as well as overseas.
Merger
During the period under review the Hon'ble High Court at Kolkata had sanctioned
the Scheme of Amalgamation of FCGL Industries Limited, an associate company
with the Company vide its Order dated 19.04.2006. FCGL Industries Limited was listed
on BSE and CSE. The entire assets & liabilities of FCGL Industries Limited
has been taken over and merged with the Company with effect from the appointed
date i. e. 01.10.2004. Pursuant to the aforesaid Scheme, the shareholders of
FCGL Industries Limited were allotted 1 (one) equity share of Rs. 10/- each
fully paid-up in the capital of the Company for every 1 (one) equity share of
Rs. 10/- each fully paid-up held by them in the merged entity.
Expansion
The company has grown rapidly during the last few years: it has gone for
backward integration i.e. coal mining and has also diversified its business
activities from coke manufacturing to steel manufacturing and generation of
wind-power.
The Company had, through its subsidiaries, acquired two coal mines in
During the period the company installed 21 Wind Turbine Generators aggregating
to the installed capacity of 26.25 MW green power generation taking the total
capacity to 27.50 MW.
The Company's green field steel plant in Kutch,
The Company is in process of installing another
Further, for economic use of the waste heat emanating from the coke plants and
in tune with our eco-friendly attitude, the company is also taking necessary
steps for co-generation of power for captive consumption.
Subsidiaries
In view of this imminent growth in end product requirement, the Company
strengthened its access to raw material. The Company floated two Australian
subsidiary companies named as GNAL & GNFL to acquire prime grade hard
coking coal mines near Sydney in Australia (since renaming aforesaid collieries
as NRE No. 1 Colliery & NRE Avondale Colliery respectively).
This backward integration will secure the availability of quality hard coking
coal across the long-term and, in turn, help the Company to maintain
consistency in both quality and supply of Met-Coke to all its regular & new
customers.
Further, Zelos Resources NL has entered into a heads of agreement with the
Company for acquisition of the above Avondale Coal Project from the Company
against issue of shares & options in Zelos to the Company, pursuant to
which the Company's stake in Zelos will increase from the present 19% to 85%
Further, subject to the approval of shareholders of Zelos, this proposed
transaction if executed will result in enhancing shareholder's value for both
companies.
As required under Section 212 of the Companies Act, 1956, the Audited Accounts
of all the three subsidiary companies including Indian subsidiary Bharat NRE
Coke Limited alongwith the Report of Auditors and Directors thereon, are
attached to the audited accounts of the company.
Further, the Consolidated Financial Statements prepared by the Company in
accordance with Accounting Standard 21, which forms part of the Annual Report,
have taken into account the financial information of its subsidiaries.
Recognitions
The Company has been awarded the status of `Two Star Export House' by the
Ministry of Commerce & Industry of the Government of India.
Overview
Coke Industry
Coke, a derivative of coking coal, plays a significant role in the
metallurgical processes. Coke is the main source of heat and is also the
reducing agent required to facilitate the conversion of metallurgical ores into
metal in the smelting process.
World Coke Industry
In
In Europe, coke capacity decreased from 62.8 MMTPA in 1999 to a recent low of
52.5 MMTPA at the end of 2002; and in
In 2004,
Domestic Coke Industry
In
(Million tonnes)
|
|
2004-05 |
2006-07
|
2011-12 |
|
Indian coke production |
18 |
21 |
60 |
|
Coking coal required |
25 |
29 |
80 |
|
Indian coking coal |
8 |
8 |
9 |
|
Net import demand |
17 |
21 |
71 |
Steel Industry
The Indian Steel Industry continued its good performance during the year
2005-06 resulting in most of the major steel companies surpassing their targets
in terms of production & sales. Though the steel prices dipped sharply
during the year, the performance was good and there has been a sharp recovery
in sales realization & demand. On the back of a stronger GDP, demand for
steel is expected to remain positive in near future.
Opportunities and Threats
Coke prices have slumped in the second half of 2005-06, have now again on a
rising spree at the onset of the current fiscal. Due to volatile coke prices,
which are predominantly controlled by
The Company is the largest non-captive manufacturer of LAMC in
The Company has also made its foray into the steel business of manufacturing
TMT bars. The manufacturing facility of GNCL is situated in the state of
Company's Performance
The total income of the company increased from Rs.2860 Millions in the previous
year to Rs.8020 Millions during the 18 months period ended on 31.03.2006, an
increase of 87% (annualised). The net profit increased from Rs. 910 Millions to
Rs. 3120 Millions, chalking an impressive growth of 129%, annualised, while the
book value of the equity shares of Rs. 10 each increased from Rs.26.93 to
Rs.43.16, a growth of 60%. The earnings per share (EPS) of the company stood at
Rs.29.76 (up from Rs. 26.61 in the previous year).
In continuation of the Company's long-term strategy and thrust to enhance
competitiveness so as to enable achieving global leadership in chosen areas of
business, steps are underway to reduce operational cost, having control over
key inputs to insulate from volatility of availability, prices and quality,
enhancing value creation through satisfying customers needs, quality, greater
geographical presence and prompt delivery.
Coke Operations
During the period under review, coke division accounted for 99% of the total
turnover of the Company. It achieved a turnover of Rs.5492.8 Millions during
the period under review, as against Rs. 2852.1 Millions in the previous year,
resulting in an increase of 28% on an annualized basis. The export turnover has
been at Rs. 1153.9 Millions against Rs. 334.7 Millions in the previous year, a
growth of 130% on an annualized basis. Lower cost of procurement of
raw-materials through long-term contracts helped the Company to achieve better
margins. The significant increase in production by 54% (annualized) from 583842
MT in the period under review against 252344 MT in the previous year was possible
due to increased capacity backed by strong demand from the user industry.
Outlook
During the period under review, the Company had acquired coking coal mines in
Steel Operations
In December, 2005, GNCL has commissioned a mini steel plant for manufacture of
Billets/ Ingots, TMT bars and other rolled products with a capacity of 0.311
million MTPA. The Billet plant & Rolling Mills of the Company has commenced
production during the period under review. The steel plant is enjoying various
fiscal benefits like sales tax & excise duty exemptions etc.
The total power requirement of the mini steel plant is around 25 MW. The
company has installed 20 Wind Turbine Generators with an installed capacity of
25 MW from which approximately 7 MW of power if expected to be generated. For
the balance requirement, the Company is in the process of setting up a 20 MW
co-generation power plant, through waste-heat recovery from coke ovens. As
such, the Company will be able to achieve significant cost savings in power
costs.
This division achieved a turnover of Rs. 52 Millions during the period under
review.
Outlook
The raw materials for the above product are MS Scrap and Sponge Iron. Both
these are available in plenty without any difficulty. In any other case,
company's steel unit is very close to
Risks and Concerns
Fortunes of the coke industry are mainly associated with that of the steel
industry being the largest consumer of coke. However, the company has got a
diversify portfolio of customers including foundries, soda ash plant, copper
& zinc smelters, cement plants, ferro alloy producers besides steel
industry. As such while the company gets the benefit of uptrend in steel
industry, it has downside protection due to its diversified customer base and
the market dominance enjoyed by virtue, of its size. Apart from the above,
being a corporate business entity the Company also faces different risks. A
detailed report on the different types of risks and concerns for the Company
along with its mitigation measures taken by the Company has been given in the
discussion on Risk Management forming part of this annual report.
Financial Discussion
The Company is enjoying short-term credit rating of 'PR1+' (PR One plus, the
highest rating) indicating strong capacity for timely payment and carry lowest
credit risk and long-term rating of 'AA-' (double A minus) indicating high
safety for timely servicing and carry very low risk, both from Credit Analysis
and Research Limited (CARE). The same are due for review after publication of
annual results.
The Company believes that its investments in the subsidiaries are strategic,
long-term in nature and well integrated with the main business of the
Company.
The Company continued to take all reasonable steps for further reduction of
cost of borrowings. The Company has made all the payments to the banks and
institutions within the respective due dates and no delay have.
The Debt Equity ratio of the company stood at 1.01 as on 31.03.2006.
Subsidiaries & Other Strategic Investments
During the 18 months period ended 31.03.2006 the company invested Rs.1632.3
Millions. Besides investments in its subsidiaries namely Bharat NRE Coke
Limited (BNCL), Gujarat NRE Australia Pty Limited (GNAL) and Gujarat NRE FCGL
Pty Limited (GNFL), GNCL has picked up strategic stakes in various companies
and invested in
Gujarat NRE Australia Pty Limited, has already started commercial production
from its mine in September 2005 and the first ROM coal shipment of 41023 MT to
GNCL was received in
FCGL Industries Limited, an associate of the Company has been merged with the
Company during the period under review (appointed date 01.10.2004) pursuant to
the Scheme of Amalgamation, approved by the Hon'ble High Court of
Press Release
Gujarat
NRE Coke Limited successfully completes the USD 50 million Foreign Currency
Convertible Bonds issue
28th March 2006
Gujarat NRE Coke Limited (“GNC”)
announces that the terms for its USD 50 million unsubordinated unsecured
foreign currency convertible bonds due 2011 (the “Bonds”) have been fixed as
follows:
Ø
Initial conversion price has been set to INR 125 per share, which
represents a 24.1927% premium over the BSE closing price of INR 100.65 on
27.03.2006
Ø
The yield to maturity has been set at 6.75% semi-annually
Ø
The bonds will be redeemed at 139.36% of par on or about 12 April
2011 (5 years and 1 day after closing price)
Due to
strong investor demand, the over-allotment option of US$ 10 million has been
fully exercised, increasing the total issue amount to US$ 60 million.
Application
will be made for the Bonds to be listed on the Euro MTF Stock Exchange of
Luxembourg.
KBC
Financial Products UK Limited and Silverdale Services Limited are Joint-Lead Managers
for the offering while UTI Bank Limitedis the Indian Financial Advisor to the
issue.
Kolkata,
June 4th 2006. The Board of Directors of Gujarat NRE Coke Limited today
created corporate history when they recommended, subject to the approval of
shareholders at the Annual General Meeting on 03.07.2006, a 4th
Consecutive bonus issue in the ratio of 1 : 1.The Board also recommended a
final dividend of 5 %, which together with the interim dividend of 45 % paid
earlier, makes the dividend paid during the 18 months period ended 31.03.2006,
50 % (last year 40 %). The total dividend payments has gone up from Rs. 168.900
Millions in the previous year to Rs. 449.600 Millions in the current period.
The total
income of the company increased from Rs. 2860 millions in the previous year to
Rs. 8020 millions during the 18 month period ended on 31.03.2006, an increase
of 87% (annualised). The Net Profit increased from Rs. 910 millions to Rs. 3120
millions, chalking an impressive growth of 193 % annualised, while the Book
value of the Equity Shares of Rs. 10/- each increased from Rs. 29.93 to Rs.
42.23, a growth of 57 %. The Earnings Per Shares of the company stood at Rs.
27.02 (up from Rs. 11.17 in the previous year).
The Board
also approved the allotment of shares to the erstwhile shareholders of FCGL
Industries as per the Scheme of Amalgamation approved by the Hon’ble High Court
of Calcutta vide its Order dated 19.04.2006.
“We are
happy” said Sri Arun Kumar Jagatramka, vice Chairman and Managing Director of
the company “in having maintained the bonus and increasing the dividend form
what was paid out last year.” The impressive figures are even more commendable
when seen in the backdrop of the dark clouds that loomed over the industry
during a good part of the period under consideration, with falling global
prices and demand on a downward spiral.
“The
steps that we have taken in the past have all contributed to the good results. Our
moves towards consolidation, towards backwards integration into mine ownership
in
(Mumbai April 9th, 2007)
The
The
impact of the Central Governments Budget of 2007, which did away with customs
duty on imported coking coal too will benefit the company in the coming years.
This coupled with the steady forays on the production front - Gujarat NRE Coke,
the only Indian company to be owning and operating coal mines in Australia
has consolidated its supply sources having streamlined the production process
of its 1st Coal Mine in NSW, Australia, NRE No.1. Thus, with a steady
supply of excellent grade raw material providing the company with the twin
edges of steady supply and hedge against global price fluctuations, the company
is all set to scale up and bask in the glories as the prices firm up.
The
net import demand of equivalent coal, which stood at 21 million tonnes in
2004-5, is currently pegged at 27 million tonnes and is expected to zoom up to
75 million tonnes by the year 2011-12 as the energy hungry nation will seek to
convert its Vision 2020 to a reality. This will mean a hundred plus million
tonnes of steel by the year 2020 and with the blast furnace route of steel
making still being the most favoured, the demand for Gujarat NRE Coke products
is expected to go only one way - up. In keeping with this projected demand
supply imbalance, the company has drawn up extended plans which include among
others :
* Doubling of coke making capacities at Dharwad in
Karnataka.
* Setting up of Coal Washery in Bachau,
* Setting up of power generation facility from waste heat in its
plants
* Consolidating the Australian and
Gujarat
NRE Coke today, is a beehive of activities and more and more
investors are flocking to the company, the only listed company in the
segment. The shareholders interest is not unwarranted, considering the fact
that Gujarat NRE is known for its investor friendly ways and has in the past
among many deeds given 4 consecutive bonuses and steady dividends. The
promoters of the company too are holding firm having acquired a further 3.76
% of the stock in the last financial year through the creeping acquisition
mode
Financial
Performance
Quarter
on Quarter, Gujarat NRE Coke has posted much improved results in the current
quarter ending March 31st 2007. Net Sales of the company, which stood at
Rs. 839.500 Millions in the quarter ended 31st March 2006, has shot
up to Rs. 1790.100 Millions, a growth of 113 percent. This upswing in
the sales has translated to a whooping 1360 percent jump in the Profit
Before Tax of the company to Rs. 604.500 Millions - up from
Rs. 41.400 Millions in the preceding quarter.
This all
pervasive and all round improvement in the performance of the company has had a
direct positive impact on the bottomline with the Earning per Share standing at
Rs. 2.09 in the current quarter, as opposed to Rs. 0.56 (up 173
percent from the previous quarter). The Book value of the company too has gone
up substantially to Rs. 23.91 per share (Rs. 21.77)
Coal
Mines
The
long term production plans at the coal mines of the company in
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.40.57 |
|
|
1 |
Rs.80.64 |
|
Euro |
1 |
Rs.54.57 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
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 |
7 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
7 |
|
--CREDIT LINES |
1~10 |
6 |
|
--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 |
|
62 |
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 |
|