MIRA
INFORM REPORT
|
Report Date : |
15.03.2008 |
IDENTIFICATION
DETAILS
|
Name : |
HINDUSTAN ZINC LIMITED |
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Registered Office : |
Yashad Bhawan,
Yashadgarh, Udaipur – 313 004, Rajasthan |
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Country : |
India |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
10.01.1966 |
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Com. Reg. No.: |
16-1208 |
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CIN No.: [Company
Identification No.] |
L27204RJ1966PLC001208 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
JDHH00694B |
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Legal Form : |
A Public Limited
Liability Company. The company's shares are listed on the Stock Exchanges. |
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Line of Business : |
Manufacturing, selling, exploration, mining & concentration of
zinc, lead silver, cadmium, sulphuric acid, phosphoric acid and cobalt. |
RATING &
COMMENTS
|
MIRA’s Rating : |
Aa |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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|
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 |
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Maximum Credit Limit : |
USD 305082400 |
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Status : |
Excellent |
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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 and respectable businessmen. Trade relations are 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
|
Registered Office : |
Yashad Bhawan, Yashadgarh, Udaipur – 313 004, Rajasthan, INDIA |
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Tel. No.: |
91 - 294 - 2529182/2529183/2529184/2529185/ 181/2529102/103/104 |
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Fax No.: |
91 - 294 - 2526443 / 2523522/2525763 |
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E-Mail : |
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Website : |
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MINING UNITS: |
Located at : v
Zawar Mines,
Udaipur, Rajasthan v
Rajpura
Dariba Mine, Rajsamand District, Rajasthan v
Rampura
Agucha Mine, Bhilwara District, Rajasthan v
Sargipali
Lead Mines, Sundergarh District, Orissa v
Maton Mine,
Udaipur District, Rajasthan v
Agnigundala
Mine, Guntur District, Andhra Pradesh v
Sargipali
Mine, Sundergarh District, Orissa |
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SMELTING UNITS: |
v
Debari Zinc
Smelter, Rajpura, Udaipur, Rajasthan v
Vizag Zinc
Smelter, Vishakhapatnam, Andhra Pradesh v
Chanderiya
Lead Zinc Smelter, Chittorgarh District, Rajasthan v
Tundoo Lead
Smelter, Dhanbad, Jharkhand |
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Exports: Fax 91-22-56434640 Email: exportzinc@vedanta.co.in
Tel 91-22-56434500 Fax 91-22-56434640 Email: Puneet.jagatramka@vedanta.co.in
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Tel. No.: |
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Regional
Office: |
Northern Regional Office Tel - 91 11-24364988/24367261 Fax 91 11-24365421 Email sanjay.khanna@vedanta.co.in Southern Regional Office Tel 91 80- 25590918 Fax 91 80- 25590917 Email: sundeep.prasanna@vedanta.co.in Eastern Regional Office Tel 91 33-2217763/22262627 Fax 91 33-22262627 Email: mohammed.azmatulla@vedanta.co.in Western Regional Office Tel 91-22-56434500 Fax 91-22-56434640 Email: Anuj.lal@vedanta.co.in |
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Branches : |
Located at : Ø
301-302,
Dohil Chambers, 46, Nehru Place, New Delhi – 110 019 Tel. No. 91-11-2628 0570 /
2646 3711 / 2641 9426 Fax No. 91-11-2648 4614 Ø
Chatterjee
International Centre, 20th Floor, 33-A, Chowringhee Road, Kolkata
– 700 071, West Bengal Tel. No. 91-33-2242 1761 /
2226 2627 / 2249 5413 Fax No. 91-33-2245 7354 Ø
47, Mittal
Chambers, Nariman Point, Mumbai – 400 021 Tel. No. 91-22-2202 5903 /
2204 9317 Fax No. 91-22-2283 3341 Ø
B-II, 403,
Kamal Apartment, Bani Park, Near Ram Mandir, Jaipur – 302 006, Rajasthan Tel. No. 91-141-2200723 Ø
Block No.
205, II Floor, 5-9-13, Tara Mandal Complex, Saifabad, Hyderabad – 500 004,
Andhra Pradesh Tel. No. 91-40-2241712 /
2233516 / 2230307 Ø
102, 8th
Garden Colony, New Surya Apartment, C-G Road, Panchawati, Ahmedabad – 380
008, Gujarat Tel. No. 91-79-2656 1161 Ø
No. 6, Amar
Jyoti House, Building Co-operative Society, Near Cordial School, Vijay Nagar,
Bangalore – 560 040, Karnataka Tel. No. 91-80-330 0292 /
330 5036 |
DIRECTORS
|
Name : |
Mr.
Agnivesh Agarwal |
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Designation : |
Chairman |
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Name : |
M S Mehta |
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Designation : |
Chief Executive
Officer and Whole Time Director |
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Name : |
Mrs. Ajita
Bajpai Pande |
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Designation : |
Director |
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Name : |
Mr. Sujit
Gulati |
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Designation : |
Director |
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Name : |
Mr. C.D.Arha |
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Designation : |
Chairman |
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Name : |
Mr. Prashant Mehta |
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Designation : |
Director |
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Name : |
Mr. Harbhajan Singh |
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Designation : |
Director |
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Name : |
Mr. A.C.Wadhawan |
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Designation : |
Director |
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Name : |
Mr. N.K.Shukla |
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Designation : |
Director |
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Name : |
Mr. Anil Agarwal |
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Designation : |
Director |
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Name : |
Mr. Navin Agarwal |
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Designation : |
Director |
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Name : |
Mr. Tarun Jain |
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Designation : |
Director |
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Name : |
Mr. C.V. Krishnan |
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Designation : |
Director |
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Name : |
Mr. K.K. Kaura |
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Designation : |
Director |
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Name : |
Mr. S K Mittal |
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Designation : |
Director |
KEY EXECUTIVES
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Name : |
Mr. Rajendra Pandwal |
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Designation : |
Company Secretary |
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Name : |
Mr. S L Bajaj |
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Designation : |
Chief Financial Officer |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
|
Names of Shareholders (as on 31.03.2007):- |
No. of Shares |
Percentage of
Holding |
|
Promoters
Holdings |
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|
Promoters |
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|
Sterlite Opportunities and Ventures Ltd. |
274315431 |
64.9218 |
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Sub
Total |
274315431 |
64.9218 |
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Non Promoters
Holdings |
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Institutional Investors |
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Mutual Funds and UTI |
2501455 |
0.5920 |
|
Banks, Financial
Institutions, Insurance Companies (Central/State Government Institutions/
Non-Government Institutions) |
2192426 |
0.5189 |
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Flls |
7747192 |
1.8335 |
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Sub Total |
12441073 |
2.9444 |
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Others |
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|
Private corporate Bodies |
2393852 |
0.5665 |
|
Indian Public |
8234222 |
1.9488 |
|
NRIs/ OCBs |
267184 |
0.0632 |
|
NRI Company |
15700 |
0.0037 |
|
Bank Foreign |
1000 |
0.0002 |
|
Foreign National Individual |
100 |
0.0000 |
|
Any other |
68279 |
0.0162 |
|
GOI – President
of India |
124795059 |
29.5351 |
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Sub
Total |
135775396 |
32.1338 |
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Total
|
422531900 |
100.000 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturing, selling, exploration, mining & concentration of
zinc, lead silver, cadmium, sulphuric acid, phosphoric acid and cobalt. |
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Products : |
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PRODUCTION STATUS (As on 31.03.2007):-
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Particulars |
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Unit
|
Installed Capacity |
Actual Production |
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MAIN PRODUCT |
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Zinc Metals |
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MT |
411000 |
317558 |
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Lead Metals |
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MT |
103000 |
23636 |
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BY PRODUCT |
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Silver |
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Kg. |
86000 |
24098 |
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Sulphuric Acid |
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MT |
687196 |
501956 |
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Cadmium Metals |
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MT |
763 |
359 |
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Copper Cathode |
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MT |
2100 |
-- |
GENERAL
INFORMATION
|
Suppliers : |
v Balaji Industries
product Limited v
Gaurav Crushing industries v
Vulcan techno private Limited v
AKCL Exports Limited |
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No. of Employees : |
12531 |
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Bankers : |
v
State Bank
of Bikaner & Jaipur v
State Bank
of India v
Bank of
Baroda v
UCO Bank v
Indian Bank v
Indian
Overseas Bank v
IDBI Bank
Limited v
ICICI Bank
Limited v
UTI Bank
Limited v
HDFC Bank
Limited v
Calyon Bank v
Development
Bank of Singapore |
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Facilities : |
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Banking Relations : |
Good |
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Auditors : |
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Name: |
Deloitte Haskins and Sells (Statutory Auditors) Chartered Accountants |
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Address |
12, Dr. Annie Besant Road, Opposite Shiv Sagar Estate, Worli, Mumbai-400018, Maharashtra, India |
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Joint Ventures: |
Name: Madanpur
South Coal Company Limited Country of
incorporation: India Principal
activities: Mining of
coal Ownership Interest
: 21.8% (based on tonnage of
extracted coal upto maximum of
31.500 millions tonnes Original cost of
Investment: Rs. 0.100 millions
(initial Investment) |
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Holding Company: |
Vedanta Resources
PLC |
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Associates/Subsidiaries : |
Nil |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
500000000 |
Equity Shares |
Rs. 10/- each |
Rs.5000.000 millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
422531900 |
Equity Shares |
Rs. 10/- each |
Rs.4225.300
millions |
Of the above:
a) 21370000 (2006:
21370000) equity shares of Rs.10/- each allotted for consideration other than
cash.
b) 274315431 (2006:
274315431) equity shares of Rs.10/- each are held by Sterlite Opportunities and
Ventures Limited (SOVL) – holding company. SOVL is a subsidiary of Sterlite
Industries (India) Limited (SIIL) and the ultimate holding company is Vedanta
Resources Pic, United Kingdom (VRP). SIIL and VRP do not hold any shares in the
company.
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
|
SHAREHOLDERS FUNDS |
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|
|
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|
1] Share Capital |
4225.300 |
4225.300 |
4225.320 |
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|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
72045.300 |
30072.500 |
16552.110 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
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NETWORTH |
76270.600 |
34297.800 |
20777.430 |
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LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
0.000 |
0.000 |
5709.320 |
|
|
2] Unsecured Loans |
3.900 |
5580.200 |
3.920 |
|
|
TOTAL BORROWING |
3.900 |
5580.200 |
5713.240 |
|
|
DEFERRED TAX LIABILITIES |
3006.300 |
2413.800 |
1081.130 |
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|
|
|
|
|
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TOTAL |
79280.800 |
42291.800 |
27571.800 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
22356.000 |
18603.000 |
13878.770 |
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Capital work-in-progress |
6349.900 |
578.000 |
4562.640 |
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INVESTMENT |
44033.000 |
16048.800 |
6878.790 |
|
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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 |
4992.800
|
3831.000
|
3343.080
|
|
|
Sundry Debtors |
5566.200
|
6898.500
|
2608.490
|
|
|
Cash & Bank Balances |
1197.000
|
740.300
|
221.070
|
|
|
Other Current Assets |
6.900
|
1.700
|
2.700
|
|
|
Loans & Advances |
3046.600
|
1622.300
|
1193.540
|
|
Total
Current Assets |
14809.500
|
13093.800 |
7368.880 |
|
|
Less : CURRENT LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Current Liabilities |
6418.100
|
4158.100
|
4274.150
|
|
|
Provisions |
1849.500
|
1873.700
|
843.130
|
|
Total
Current Liabilities |
8267.600
|
6031.800 |
5117.280 |
|
|
Net Current Assets |
6541.900
|
7062.000
|
2251.600
|
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
79280.800 |
42291.800 |
27571.800 |
|
PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
|
Sales Turnover |
85602.200 |
38902.600 |
23372.000 |
|
|
Other Income |
2312.700 |
1158.100 |
0.000 |
|
|
Total Income |
87914.900 |
40060.700 |
23372.000 |
|
|
|
|
|
|
|
|
Profit/(Loss) Before Tax |
64536.600 |
22295.700 |
9269.190 |
|
|
Provision for Taxation |
20118.500 |
7570.900 |
2715.850 |
|
|
Profit/(Loss) After Tax |
44418.100 |
14724.800 |
6553.340 |
|
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|
|
|
|
|
|
Export Value |
42135.800 |
8623.500 |
3650.110 |
|
|
|
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|
|
|
|
Import Value |
2571.300 |
1744.900 |
2214.510 |
|
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|
|
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Expenditures : |
|
|
|
|
|
|
Manufacturing Expenses |
16843.500 |
12639.500 |
|
|
|
Administrative Expenses |
2660.600 |
1647.700 |
|
|
|
Increase/(Decrease) in Finished Goods |
[569.100] |
[434.800] |
14102.810 |
|
|
Salaries, Wages, Bonus, etc. |
2598.100 |
2055.900 |
|
|
|
Finance |
284.400 |
474.000 |
|
|
|
Depreciation & Amortization |
1560.800 |
1382.700 |
|
|
Total Expenditure |
23378.300 |
17765.000 |
14102.810 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2007 |
30.09.2007 |
31.12.2007 |
|
Type
|
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
|
Sales Turnover |
19700.000 |
19840.000 |
16580.000 |
|
Other Income |
2700.000 |
1440.000 |
1110.000 |
|
Total Income |
22400.000 |
21280.000 |
17690.000 |
|
Total Expenditure |
5340.000 |
5650.000 |
6140.000 |
|
Operating Profit |
17060.000 |
15630.000 |
11550.000 |
|
Interest |
70.000 |
60.000 |
60.000 |
|
Gross Profit |
16990.000 |
15570.000 |
11490.000 |
|
Depreciation |
450.000 |
490.000 |
540.000 |
|
Tax |
4410.000 |
3360.000 |
3010.000 |
|
Reported PAT |
11850.000 |
11480.000 |
7850.000 |
KEY RATIOS
|
Year |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
Debt-Equity Ratio |
0.05 |
0.21 |
0.33 |
|
Long Term Debt-Equity Ratio |
0.05 |
0.21 |
0.17 |
|
Current Ratio |
1.41 |
1.38 |
1.09 |
|
TURNOVER RATIOS |
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|
Fixed Assets |
2.84 |
1.61 |
1.23 |
|
Inventory |
20.90 |
12.10 |
7.48 |
|
Debtors |
14.79 |
9.13 |
9.21 |
|
Interest Cover Ratio |
227.92 |
48.04 |
515.96 |
|
Operating Profit Margin(%) |
71.99 |
55.66 |
41.33 |
|
Profit Before Interest And Tax Margin(%) |
70.30 |
52.47 |
37.81 |
|
Cash Profit Margin(%) |
49.87 |
37.12 |
30.20 |
|
Adjusted Net Profit Margin(%) |
48.17 |
33.93 |
26.68 |
|
Return On Capital Employed(%) |
111.61 |
68.62 |
38.99 |
|
Return On Net Worth(%) |
80.35 |
53.47 |
36.56 |
LOCAL AGENCY
FURTHER INFORMATION
History
Incorporated in the mid-sixties, the Company was a
wholly-owned company of the Government of India till disinvestment of shares by
the Government, in favour of trust, financial institutions and banks, in
May'92. The company is engaged in mining and refining ore to produce
non-ferrous metals -- zinc and lead. Silver, Sulphuric acid, Cadmium and Copper
Cathode are produced as by-products.
The main products, zinc and lead, are used by the engineering and automobile
industries. The company has stock points all over India, from where it markets
its products. Subject diversified into gold exploration which commenced in
Jan.'95 in Jagpura, Rajasthan.
The company signed MoUs with three foreign companies -- BHP Minerals and
Nuigini Mining (NML) for exploration and exploitation of base and precious
metals in India; and BRGM/VMC for Pac Lang gold prospect in Vietnam.
The Government. has decided to incorporate put and call options in the
shareholders agreement for subject thereby paving the way for further diluting
its stake in the public sector unit. This move is part of the Government.'s
efforts to further reduce its stake to 26% from the current 76%. This put option
would enable the Government. to offer the strategic partner right to further
increase its stake in the PSU to 49%. The Government has decided to sell upto
26% stake in the company in the first tranche of disinvestment. It has mandated
global advisor Banque Nationale de Paris - Paribas to act as global advisor for
the sell off. During the end of March 2005 the stake of Government of India in
the company stood as 29.54%
In March 2002, Sterlite Industries (India) Limited, successfully acquired a 26%
stake in the company at a price of Rs 445 crores through Sterlite Opportunities
and Ventures Limited, a special purpose vehicle set up for the same. The Nickel
Technology Project in Orissa was successfully operated during 2001-02. A pilot
plant for PolyMetallic Nodules was set up at Central Reserach Development
Laboratory and this plant was commissioned in April,2002.
During 2004-05 the company has commissioned 170000 TPA Hydro Met Zinc Smelter
along with a captive power plant of 154 MW, with matching expansion of 3.75
million TPA of mining and milling at Rampura Agucha Mines. While the expansion
of Rampura Agucha Mine and beneficiation plant and the CPP of 154 MW have been
completed in March 2005 the new Zinc Smelter has been commissioned and trial
runs are in progress. The new lead project of 50000 TPA capacity using Ausmelt
technology is in progress and is expected to be commissioned during 2005-06.The
company have invested Rs.139.43 million in Mansi Wakal Stage-I Project for
construction of dam and project is nearing the completing stage.
The company has increased its installed capacity of Sulphuric acid by 306000 MT
and with this expansion the total installed capacity of Sulphuric acid by
629000 MT during 2004-05.
Financial review:
During the year under review, the
total revenue of the Company increased by 119% from Rs. 40060.000 millions to
Rs. 87910.000 millions.
A detailed analysis of the
Company's performance is contained in the Management Discussion and Analyses
Report.
Zinc and lead prices significantly
increased during the year under review.
Average zinc LME CSP for the year
2006-07 was US$ 3580 as against US$1,674 during the year 2005-06. Average lead
LME CSP was US 81426 as against US$ 1047 during the last fiscal year.
Operations overview:
The year 2006-07 has been a
momentous year in the history of the Company.
Following production ramp up in the new hydro zinc smelter, the year witnessed
zinc metal output of 348316 tonnes, an increase of 73% over the preceding year.
Lead metal production during the year under review was 50187 tonnes, which was
103 higher than the preceding year, a result of the first full year operation
of Ausmelt Lead Plant. The Company also achieved the highest everlead and zinc
concentrate production of 1054720 dint, an increase of 7% over the last year,
largely due to reaching full capacity of 3.75 MT per annum mining in
Agucha.
The Company exported 154249 dint of zinc concentrate, 69050 unit of lead
concentrate and 145329 tonnes of zinc metal, earning foreign exchange of
Rs.0.005 millions an The Company's 154 MW thermal CPP - operated at an average
PLF at 94.55 - greatly contributed to reduce power cost.
Project review:
Work is progressing well on 170000
tpa Phase II hydro smelter at Chanderiya, 80 MW CPP and mining expansion at
Agucha.
88000 too de-bottlenecking project is also progressing well on schedule.
Completed commissioning of 38.4 MW wind power project in Gujarat in March, 7007
and it performance is satisfactory. During the current year, work is going on
as per schedule to add another 170.4 MW wind power project.
Health, safety and environment:
The Company follows a progressive
HSE policy aimed at providing a safe and healthy work place for its employees,
monitoring and reducing environment risk, effect use of resources and
minimising air and water pollution. All their plants are certified for ISO
74001 (Environment) and OHSAS 18001 (Health and Safety).
As an environmentally conscious corporate citizen, the Company invested Rs.
210.000 millions in the clean technology-based Tail Gas Treatment plant at the
Deban Zinc smelter and the Pyro Zinc smelter at Chandenya It reduced the
emission of SO2 to less than 2 kgs per tonne of acid produced (while the
statutory limit is 4 kgs). Thanks to the technology, the Company could avoid
solid hazardous waste by using calcine in place of lime, used in traditional
gas scrubbers.
Awards and Prizes
The company received the following awards/prizes during the
year:
Vizag Zinc Smelter won May Day Award 2005 for Best Management for its
outstanding contribution in maintenance of Industrial Relations, Social Welfare
and Productivity.
Vizag Zinc Smelter also won the Award for Occupational Health and Safety
(OHSAS-18001) at National Safety
Day Celebration held on 4th March 2005 at Hyderabad.
Rampura Agucha Mine has been awarded certificate of 'Overall Excellence' at the
Mines Environment and Minerals Conservation Week, under the aegis of Indian
Bureau of Mines, Ajmer region.
Rampura Agucha Mine got the 1st prize in the following categories: Open Cast
Working, Explosive management (storage, transport and use), Welfare Amenities,
Protective equipment VTC. Mine Lighting, Mine Plans and record keeping and
Overall 1st prize for overall performance at the 18th Mines Safety Week.
Rajpura Dariba Mine bagged the first prize in afforestation/plantation, waste
dump management and other prizes at 5th Mine and Minerals Conservation Week
2004 at J.K. Cement, Nimbahera.
Rajpura Dariba Mine won 'Best Team Award on Recovery' at All India Mine Rescue
Competition 2004-05 at Mahanadi Coal Field Limited, Talchar.
Awards and recognitions
During the year, many of operations received awards and
commendations for their contribution to HSEC management, which continuously
encourages them to set higher targets for their businesses in this area. Some
of the significant achievements are as under:
Greentech Silver Award for 2004 in Mining Sector for Excellence in
Environmental Management to Zawar Mines.
British Safety Council's National award to Chanderiya Lead Zinc Smelter for its
safety performance during 2003 which was conferred in May 2004.
Greentech Silver award and National Safety Council award to CLZS for its safety
performance during the prior year, CLZS has also been chosen for a Greentech
Silver award for its safety performance during the year ended 31st March 2005,
which was conferred in May 2005.
Rajpura Dariba Mines has received the Best Team as well as Best Member Awards
in All India Mine Rescue Competition in Metal sector in February 2005 at
Talchir, Orissa.
Each of the company mines has received a number of awards during the Mine
Environment and Mineral Conservation Week (MEMCW) for 2004-05 in which all
mines of the region compete under the auspices of the Indian Bureau of Mines.
The Rampura Agucha Mine received the award for overall excellence in Mine
Environment.
Vizag Zinc Smelter received 'May Day Award-2005 for Best Management' for its
outstanding contribution in maintenance of Industrial Relations, Social Welfare
and Productivity from the Government of Andhra Pradesh. Earlier to this, the
Unit also received the award for Occupational Health and Safety (OHSAS-18001)
on the occasion of National Safety Day Celebrations held on 4th March, 2005 at
Hyderabad.
Rampura Agucha Mine was also placed first overall in the mechanised opencast
mine category during Mines Safety week, in the Ajmer region under the aegis of
Directorate General of Mines Safety (Northern Zone), Ministry of Labour,
Government of India. Many other prizes in individual competitions were
obtained.
BUSINESS
The company is
engaged in manufacturing and selling, exploration, mining and concentration of
zinc, lead silver, cadmium, sulphuric acid, phosphoric acid and cobalt.
The company is
engaged in mining and refining of ore to produce non-ferrous metals such as
zinc, lead and silver with installed capacities of 152000 tpa, 65000 tpa and
122800 tpa, respectively. Sulphuric
acid, Cadmium and Zinc Sulphate are produced as by-products. It also has installed capacities for
phosphoric acid and superphosphate.
The main products,
zinc and lead, are used by the engineering and automobile industries.
The company has
singed MOUs with three foreign companies - BHP Minerals and Nuigini Mining
(NML) for exploration and exploitation of base and precious metals in India.
Subject's
operations are broad based and its activities range from exploration, mining
and ore processing to smelting and refining of lead, zinc, cadmium, cobalt,
copper and other precious metals. It
also produces sulphuric acid and rock phosphate.
Starting with a
150000 tpa lead zinc mine, a 3600 tpa lead smelter and an 1800 tpa zinc smelter
under construction. It operates five
lead-zinc mines with a total lead-zinc ore production capacity of 3.49 million
tpa and four smelters with combined installed capacity of 152000 tpa zinc and
65000 tpa lead besides a rock phosphate mine.
The company is in trade terms with:
v
Sarvodaya
Engineering Works
v
Oswal
Engineering and Chemical Company
v
Vasudha Udhyog
v
Bansal
Industrial Gases
v
Om Shree Durga
Hardcoke Manufacturing Company
v
Vishwakarma
Foundry and Engineering
v
Siddhant
Chemicals (Private) Limited
The company’s fixed assets of important
value include
· Land (Freehold And Leasehold),
· Buildings and Road,
· Railway Sidings,
· Locomotive and Wagons,
· Plant and Machinery (Plant and Machinery,
· Power Supply and Distribution,
· Shafts,
· Adits and Inclines,
· Air and Water Lines,
· Industrial Waste and Effluent Treatment,
· Water Mains,
· Dams,
· Canal and Wells And Other Equipments),
· Furniture and Fittings And
· Vehicles.
OTHER INFORMATION:
|
Contingent
Liabilities: |
31.03.2007 (Rs. in millions) |
|
Claims against
the company not acknowledged as debts |
|
|
- Suppliers and
contractors |
279.500 |
|
- Employees, ex-employees
and others |
160.200 |
|
Guarantees issued
by the banks |
185.700 |
|
Sales tax demands |
439.400 |
|
Claim for
compensation (CLZS land) |
NA |
press clippings
As on 3rd
December, 2003
Business Summary
Incorporated in the
mid-sixties, Hindustan Zinc (HZL) was a
wholly-owned company of the Govt. of India till disinvestment of shares by the
Govt., in favour of trust, financial institutions and banks, in May'92. The
company is engaged in mining and refining ore to produce non-ferrous metals -- zinc, lead and silver with installed capacities of
169000 tpa, 43000 tpa and 86000 tpa respectively. Sulphuric acid, cadmium and zinc sulphate are produced as by-products. It also
has installed capacities for phosphoric acid and superphosphate.The main
products, zinc and lead, are used by the
engineering and automobile industries. The company has stock points all over
India, from where it markets its products. HZL diversified into gold
exploration which commenced in Jan.'95 in Jagpura, Rajasthan.
The company signed
MoUs with three foreign companies -- BHP Minerals and Nuigini Mining (NML) for
exploration and exploitation of base and precious metals in India; and BRGM/VMC
for Pac Lang gold prospect in Vietnam.The Govt. has decided to incorporate put
and call options in the shareholders agreement for HZL thereby paving the way
for further diluting its stake in the public sector unit. This move is part of
the Govt.'s efforts to further reduce its stake to 26% from the current 76%.
This put option would enable the Govt. to offer the strategic partner right to
further increase its stake in the PSU to 49%. The Govt. has decided to sell
upto 26% stake in the company in the first tranche of disinvestment. It has
mandated global advisor Banque Nationale de Paris - Paribas to act as global
advisor for the sell off. In March 2002, Sterlite Industries (India) Limited.,
successfully acquired a 26% stake in the company at a price of Rs 445 crores
through Sterlite Opportunities and Ventures Limited, a special purpose vehicle
set up for the same. The Nickel Technology Project in Orissa was successfully
operated during 2001-02. A pilot plant for PolyMetallic Nodules was set up at
Central Reserach Development Laboratory and this plant was commissioned in
April,2002.
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 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.40.45 |
|
UK Pound |
1 |
Rs.81.20 |
|
Euro |
1 |
Rs.63.48 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
9 |
|
PAID-UP CAPITAL |
1~10 |
9 |
|
OPERATING SCALE |
1~10 |
9 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
10 |
|
--PROFITABILIRY |
1~10 |
8 |
|
--LIQUIDITY |
1~10 |
9 |
|
--LEVERAGE |
1~10 |
9 |
|
--RESERVES |
1~10 |
9 |
|
--CREDIT LINES |
1~10 |
9 |
|
--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 |
YES |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
81 |
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. |
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 |
|