MIRA
INFORM REPORT
|
Report Date : |
08.10.2008 |
IDENTIFICATION
DETAILS
|
Name : |
HINDALCO
INDUSTRIES LIMITED |
|
|
|
|
Registered
Office : |
Century Bhavan, 3rd
Floor, Dr. Annie Besant Road, Worli, Mumbai – 400025, Maharashtra |
|
|
|
|
Country : |
India |
|
|
|
|
Financials : |
31.03.2008 |
|
|
|
|
Date of
Incorporation : |
15.12.1958 |
|
|
|
|
Com. Reg. No.: |
11-11238 |
|
|
|
|
CIN No.: [Company Identification No.] |
L27020MH1958PLCO11238 |
|
|
|
|
TAN No.: [Tax
Deduction & Collection Account No.] |
MUMI05707C MUMH00493D |
|
|
|
|
PAN No.: [Permanent
Account No.] |
AAACH1201R |
|
|
|
|
Legal Form : |
Public Limited Liability
Company. The Company’s Shares are Listed on the Stock Exchanges |
|
|
|
|
Line of
Business : |
Manufacturing and
selling of aluminium metal, rolled products, extruded products, conductor
redraw rods, Aluminium foil, hot and cold rolled flat steel products and
Generation of electricity. |
RATING &
COMMENTS
|
MIRA’s Rating
: |
Aa |
||||
RATING |
STATUS |
PROPOSED
CREDIT LINE |
|
|||
|
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 |
|
||
|
|
|
|
|
|
|
|
|
Maximum Credit
Limit : |
USD 900000000 |
|
|
|
|
Status : |
Good |
|
|
|
|
Payment
Behaviour : |
Regular |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is a part
of Aditya Birla Group, a well-established and reputed company having fine track.
Available information indicates high financial responsibility of the
company. Trade relations are reported
as fair. Payments are always correct and as per commitments. The company can
be considered good for any normal business dealings at usual trade terms and
conditions. |
LOCATIONS
|
Registered
Office : |
Century Bhavan, 3rd
Floor, Dr. Annie Besant Road, Worli, Mumbai – 400 025, Maharashtra, INDIA |
|
Tel. No.: |
91-22-24308491/
92/ 93/66626666 |
|
Fax No. : |
91-22-24227586/ 24362516 |
|
Email : |
|
|
Websites: |
|
|
|
|
|
Corporate Office 1: |
S. K. Ahire Marg, Worli, Mumbai – 400030, Maharashtra, India |
|
Tel No.: |
91-22-66525000/ 24995000 |
|
Fax No.: |
91-22-66525841/ 24995841 |
|
|
|
|
Corporate
Office 2: |
Foil and Packaging Business, Kalwa Works, Thane
Belapur Road, Near Vitawa Village, Kalwa, Thane-400605, Maharashtra, India |
|
Tel. No.: |
91-22-25347151 |
|
Fax No. : |
91-22-24227586 |
|
Email : |
|
|
|
|
|
Principal
office & Works / Renusagar Power Division |
District
Sonbhadra, P. O. Renukoot – 231217, Mirzapur, Uttar Pradesh, India |
|
Tel. No.: |
91-5446-252077-9/
272501-5 |
|
Fax No.: |
91-5446-252107 /
252427/ 272382 |
|
E-Mail : |
|
|
|
|
|
Birla Copper
Division: |
P. O. Dahej,
Lakhigam, Dist. Bharuch - 392130, Gujarat, India |
|
Tel. No.: |
91-2641-256004-06/251009 |
|
Fax No.: |
91-2641-251002-3 |
|
E-Mail : |
|
|
|
|
Foil &
Wheels Division:
|
Village Khutli,
Khanvel, Silvassa – 396 230, Union Territory of Dadara & Nagar Haveli,
INDIA |
|
Tel. No.: |
91-260-2677021-4 |
|
Fax No.: |
91-260-2677025 |
|
|
|
|
Export Office: |
9/1, R. N.
Mukherjee Road, Kolkata - 700 001, West Bengal |
|
Tel. No.: |
91-33-22480949 /
22200464 |
|
Fax No.: |
91-33-22200214 |
|
Email: |
|
|
|
|
|
Factory : |
ALUMINIUM
AND POWER Renukoot
Plant P.O. Renukoot -231217, Dist Sonbhadra Uttar Pradesh, India
Tel : 91-5446-252077-9 Fax: 91-5446-252107 Renusagar
Power Division P. O. Renusagar, Dist. Sonbhadra Uttar Pradesh, India Tel : 91-5446-272502-5 Fax: 91-5446272382 Alupuram
Smelter Alupuram P.B. No. 30, Kalamassery 683 104, Dist:
Ernakulam, Kerala Tel: 91-484-2532441 Fax: 91-484-2532468 Hirakud
Smelter Hirakud 768 016, Dist: Sambalpur, Orissa Tel: 91-663-2481307 Fax: 91-663-2481356 Hirakud
Power Post Box No.12, Hirakud 768 016, Dist: Sambalpur, Orissa
Alupuram, Tel: 91-663-2481408 Fax: 91-663-2481342 Talabira
Mines Talabira-1, Qrs. No. A6/1, Saraswati Vihar, P.O. Sankarma,
Dist. Sambalpur, Orissa Tel: 91-663-2540426 Fax: 91-663-2540526 COPPER: Birla
Copper Division P.O. Dahej, Lakhigam Post, Dist. Bharuch – 392 130,
Gujarat Tel: 91-2641- 256004-06/ 251009 Fax: 91-2641- 251002-3 CHEMICALS: Muri
Alumina Post Chotamuri-835 101, Dist: Ranchi, Phone: 91-6522- 244396 Fax: 91-6522-244231 Belgaum
Alumina Village Yamanapur , Belgaum 590 010 39, Karnataka, India Tel: 91-831-2472716 Fax: 91-831-2472728 Chandgad
Mines At Post: Chandgad 416509, Dist: Kolhapur, Maharashtra,
India Tel/Fax: (02320) 213342 Durgmanwadi
Mines At Post Radhanagri, Dist: Kolhapur, Maharashtra - 416 212,
India Tel: 91-2321-260036 Fax: 91-2321-260037 Lohardaga
Mines Dist: Lohardaga 835 302, Jharkhand Tel/ Fax: 91-6526-224446 SHEET,
FOIL, WHEEL, PACKAGING AND EXTRUSIONS Foils & Wheels Division, Village Khutli, Khanvel,
Silvassa-396 230, U.T. Tel: 91-260-2677021 – 4 Fax: 91-260-2677025 Belur
Sheet 39, Grand Trunk Road, Belurmath 711 202, Dist: Howrah,
West Bengal Tel: 91-33-2654 7210 Fax: 91-33-2654 9982 Taloja
Sheet Plot 2, MIDC Industrial Area, Taloja A.V., Dist : Raigad,
Navi Mumbai - 410 208, Maharashtra, India Tel: 91-22-2741 2261/ 66292929 Fax: 91-22-2741 2430 Kalwa
Foil Thane Belapur Road, Kalwa, Thane 400 605, Maharashtra,
India Tel: 91-22- 25347151/52 Fax: 91-22- 25348798 Alupuram
Extrusions Alupuram, P.B. No.30, Kalamassery - 683 104, Dist:
Ernakulam, Kerala Tel: 91-484-2532441 Fax: 91-484- 2532468 Mouda
Unit Village Dahali, Ramtek Road, Mouda, Nagpur – 441 104,
India Tel: 91-7115-660777/786 Kollur
Works Village- Kollur, Re Puram Mandal, Via Mutangi, Medak Dist,
Andhra Pradesh – 502 300 Tel: 91-8413- 234300/ 234204/05 Fax: 91-8455-288829 |
DIRECTORS
|
Name : |
Mr. Kumar
Mangalam Birla |
|
Designation : |
Chairman |
|
|
|
|
Name : |
Mr. D.
Bhattacharya |
|
Designation : |
Managing Director |
|
|
|
|
Name : |
Mr. T. K. Sethi |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. C. M. Maniar |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. E. B. Desai |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. S. S. Kothari |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. K. N.
Bhandari |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. M. M. Bhagat |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. A. K.
Agarwala |
|
Designation : |
Whole Time
Director |
|
|
|
|
Name : |
Mrs. Rajashree
Birla |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. N. J. Jhaveri
|
|
Designation : |
Director |
KEY EXECUTIVES
|
Name : |
Mr. S Talukdar |
|
Designation : |
President (Chief Financial Officer ) |
|
|
|
|
Name : |
Mr. Anil Malik |
|
Designation : |
Company Secretary, Joint President (Company Matters, Taxation &
Treasury) |
|
|
|
|
Name : |
Mr. R. K.
Kasliwal |
|
Designation : |
Executive President (Finance & Commerce), Advisor |
|
|
|
|
Name : |
Mr. Amit Basu |
|
Designation : |
Advisor |
|
|
|
|
Name : |
Ms. N. Chainani |
|
Designation : |
Executive President (Corporate Affairs and Development) |
|
|
|
|
Name : |
Mr. S. K. Maudgal |
|
Designation : |
Executive President (Marketing) & Chief Executive Officer ( Foil
& Wheel) |
|
|
|
|
Name : |
Mr. Ajey
Srivastava |
|
Designation : |
Joint President (Operation & Planning) |
|
|
|
|
Name : |
Mr. P.K. Panda |
|
Designation : |
Joint President (H. R.) |
|
|
|
|
Name : |
Mr. Ramesh Kumar |
|
Designation : |
Senior Vice-president (Marketing-Extrusions) |
|
|
|
|
Name : |
Mr. A. K.
Karmakar |
|
Designation : |
Senior Vice-President (Boiler & Co-generation) |
|
|
|
|
Name : |
Mr. R. P. Tiwari |
|
Designation : |
Senior Vice-President (Projects) |
|
|
|
|
Name : |
Mr. S. N. Sharma |
|
Designation : |
Senior Vice –President (Finance & Accounts) |
|
|
|
|
Name : |
Mr. S. C. Tandon |
|
Designation : |
Senior Vice-President (Port Room Operation) |
|
|
|
|
Name : |
Mr. K. K. Patodia |
|
Designation : |
Senior Vice- President (Raw Material) |
|
|
|
|
Name : |
Mr. O. P. Sharma |
|
Designation : |
Vice-President (Alumina Mech. Maintenance) |
|
|
|
|
Name : |
Mr. R. Haridas
Menon |
|
Designation : |
Vice-President (Marketing – Primary Metal) |
|
|
|
|
Name : |
Mr. I. C. Rao |
|
Designation : |
Vice President (Marketing – Rolled Products) |
|
|
|
|
Name : |
Mr. Sanjeev Goel |
|
Designation : |
Vice President (Information Technology) |
|
|
|
|
Name : |
Mr. N. K. Zalani |
|
Designation : |
Vice President ( Industrial
Engineer) |
|
|
|
|
Name : |
Mr. R. Ram |
|
Designation : |
Chief People Officer |
|
|
|
|
ALUMINIUM
BUSINESS : |
|
|
Name : |
Mr. S. K. Maudgal |
|
Designation : |
Executive President (Marketing) & Chief Executive Officer ( Foil
& Wheel) |
|
|
|
|
Name : |
Mr. Shankar Ray |
|
Designation : |
Joint President (Chemical and International Trade) |
|
|
|
|
Name : |
Mr. S M Bhatia |
|
Designation : |
President (Foil and Wheel) |
|
|
|
|
Name : |
Mr. R. S. Dhulkhed |
|
Designation : |
President (Operations) |
|
|
|
|
RENUKOOT
UNIT : |
|
|
Name : |
Mr. D. K. Kohly |
|
Designation : |
Chief Officer – Operations |
|
|
|
|
Name : |
Mr. R P Shah |
|
Designation : |
Chief Manufacturing Officer |
|
|
|
|
Name : |
Mr. Rahul Mahnot |
|
Designation : |
Joint Executive President (F and C) |
|
|
|
|
Name : |
Mr. Ashok Machher |
|
Designation : |
Joint President (F and C) |
|
|
|
|
Name : |
Mr. J Bhowmik |
|
Designation : |
Joint President (Renusagar Power) |
|
|
|
|
ADITYA ALUMINIUM
: |
|
|
Name : |
Mr. S N Bontha |
|
Designation : |
Chief Executive Officer |
|
|
|
|
Name : |
Mr. S. N. Jena |
|
Designation : |
Chief Operating Officer |
|
|
|
|
COPPER
BUSINESS : |
|
|
Name : |
Mr. Dilip Gaur |
|
Designation : |
Group Executive President |
|
|
|
|
Name : |
Mr. N. M. Patnaik |
|
Designation : |
Joint Executive President (Finance and Commercial) |
|
|
|
|
Name : |
Mr. J P Paliwal |
|
Designation : |
Joint Executive President (Commercial) |
|
|
|
|
Name : |
Mr. B M Sharma |
|
Designation : |
Chief Marketing Officer |
|
|
|
|
CORPORATE :
|
|
|
Name : |
Mr. R. Ram |
|
Designation : |
Senior President (Corporate Project) |
|
|
|
|
Name : |
Mr. Pratik Roy |
|
Designation : |
Chief People Officer |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
(As on 30.06.2008)
Code
|
Category of Shareholders
|
No. of shares
|
Percentage of
Holding |
|
(A) |
Shareholding of promoter and promoter
group |
|
|
|
1 |
Indian |
|
|
|
(a) |
Individuals /
Hindu undivided Family |
1291496 |
0.12% |
|
(b) |
Bodies Corporate |
367999578 |
33.57% |
|
(c) |
Trust |
16316130 |
1.49% |
|
|
Total (A) |
385607204 |
35.18% |
|
|
|
|
|
|
(B) |
Public Shareholding |
|
|
|
1 |
Institutions |
|
|
|
(a) |
Mutual funds / Axis |
54479290 |
4.97% |
|
(b) |
Financial Institutions / Banks |
11496618 |
1.05% |
|
(c) |
Central government / State Government(s) |
287480 |
0.03% |
|
(d) |
Insurance Companies |
128609415 |
11.73% |
|
(e) |
Foreign Institutional Investors |
150456325 |
13.73% |
|
|
Sub-Total (B) (1) |
345329128 |
31.50% |
|
|
|
|
|
|
2 |
Non-institutions |
|
|
|
(a) |
Bodies Corporate |
154743551 |
14.12% |
|
(b) |
Individuals |
|
|
|
|
I. Individual
shareholders holding nominal share capital up to Rs. 0.100 million |
136926383 |
12.49% |
|
|
II. Individual shareholders
holding nominal share capital in excess of Rs. 0.100 million |
31278253 |
2.85% |
|
(c) |
Non-resident
individuals |
7743658 |
0.71% |
|
|
I. Foreign bodies
corporate |
32726843 |
2.99% |
|
(d) |
Shares in transit |
1855495 |
0.17% |
|
|
Sub-Total (B) (2) |
365274183 |
33.32% |
|
|
|
|
|
|
|
Total Public Shareholding (B) = (B) (1) +
(B) (2) |
710603311 |
64.82% |
|
|
|
|
|
|
(C) |
Shares held by custodians and against
which depository receipts have been issued |
130920053 |
0.00% |
|
|
|
|
|
|
|
GRAND TOTAL (A) + (B) + (C) |
1227130568 |
100.00% |
BUSINESS DETAILS
|
Line of
Business : |
Manufacturing and
selling of aluminium metal, rolled products, extruded products, and conductor
redraw rods, Aluminium foil, hot and cold rolled flat steel products and
Generation of electricity. |
||||||||||||
|
|
|
||||||||||||
|
Products: |
|
||||||||||||
|
|
|
||||||||||||
|
Exports: |
|
||||||||||||
|
Countries : |
|
||||||||||||
|
|
|
||||||||||||
|
Imports : |
|
||||||||||||
|
Countries : |
|
PRODUCTION STATUS (A son 31.03.2008)
Class of goods
|
|
Installed Capacity
|
Actual Production
|
|
|
|
Tonnes |
Tonnes |
|
Aluminium Metal |
|
471000 |
477723 |
|
Rolled Products |
|
200000 |
215198 |
|
Extruded Products
|
|
27700 |
43315 |
|
Conductor Redraw
Rods |
|
50000 |
71798 |
|
Aluminium Foil |
|
40000 |
27645 |
|
Aluminium Wheel |
|
300000 PCS |
174069 PCS |
|
Hydrate &
Alumina |
|
1160000 |
1192709 |
|
Electricity |
|
1109.2 |
8082 |
|
Electricity
(Co-generation) |
|
212.8 |
1338 |
|
Continuous Cast
Copper Rods (CCR) |
|
97200 |
139682 |
|
Copper Cathodes |
|
5000000 |
327667 |
|
Phosphoric Acid |
|
1670000 |
1023422 |
|
Sulphuric Acid |
|
180000 |
66677 |
|
DAP &
Complexes |
|
400000 |
149589 |
|
Gold |
|
15 |
9136 |
|
Silver |
|
150 |
52939 |
GENERAL
INFORMATION
|
No. of
Employees : |
12000 |
|
|
|
|
Bankers : |
Plc, 19, N. S. Road, Kolkata, West Bengal,
India Tel. No. 91-33-22220103 |
|
|
|
|
Banking Relations : |
Good |
|
|
|
|
Auditors : |
·
Singhi and
Company Chartered Accountants Kolkata, West Bengal, India Cost
Auditors
·
R Nanabhoy
and Company Cost Accountants Mumbai, Maharashtra, India |
|
|
|
|
Memberships: |
Confederation of
Indian Industry |
|
|
|
|
Collaborator: |
Kaiser
Engineering Corporation, USA. |
|
|
|
|
Joint
Ventures: |
Ř
Bihar Caustic
and Tanfac Industries Limited Ř
IDEA
Cellular Limited Ř
Mahan Coal
Limited |
|
|
|
|
Group
Companies : |
Associates/ Subsidiaries: Ř Grasim Industries Limited Ř Indian Rayon and Industries Limited Ř Mangalore Refinery and Petrochemicals Limited Ř Aditya Birla Minerals Limited Ř Aditya Birla Science and Technology Company Limited Ř Birla Power Supply Company Limited Ř Birla Project Development Company Limited Ř Bihar Caustic and Chemicals Limited Ř Birla Sun-Life Joint Ventures Ř Birla Global Finance Ř Bina Power Supply Company Limited Ř Rosa Power Supply Company Limited Ř HGI Industries Limited Ř Eastern Spinning Mills Limited Ř Shree Digvijay Cement Limited Ř Kerala Spinners Limited Ř Essel Mining Ř Tanfac Industries Limited Ř Birla AT and T Communications Limited Ř Birla Global Finance Limited Ř Birla Maroochydore Pty Limited Ř Birla Minerals Resources Pty Limited Ř Birla Capital International AMC Limited Ř Birla Management Corporation Limited Ř Birla Telecom Limited Ř Rajashree Polyfil Ř Thai Rayon, Thailand Ř Indo Thai Synthetics, Thailand Ř Century Textiles, Thailand Ř Consorcio Candonga Ř France Aluminium Recyclage SA Ř Aluminium Norf Gmbh Ř MiniMRF LLC (Delaware) Ř Thai Acrylic Fibre, Thailand Ř Thai Carbon Black, Thailand Ř Thai Polyphosphates, Thailand Ř Thai Epoxy, Thailand Ř Thai Peroxide, Thailand Ř Thai Organic Chemicals, Thailand Ř Indo Phil Textile Mills, Philippines Ř P T Indo Bharat Rayon, Indonesia Ř P T Elegant Textile Industry, Indonesia Ř PT Indo Liberty Textiles, Indonesia Ř Pan Century Edible Oils, Malaysia Ř Pan Century Rubber Products, Malaysia Ř Pan Century Oleochemicals, Malaysia Ř Alexandria Carbon Black, Egypt Ř AV Cell Inc., Canada Ř Learning Byte International, USA Ř Grasim - Dubai, UAE Ř LNG Ennore Project Ř Lucknow Finance Company Limited Ř Minerals and Minerals Limited Ř Renukeshwar Investments and Finance Limited Ř Renuka Investments and Finance Limited Ř Indian Aluminium Company Limited Ř Indal Exports Limited Ř Annapurna Foils Limited Ř Dahej Harbour and Infrastructure Limited |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
1450000000 |
Equity Shares |
Rs.1/- each |
Rs.1450.000 millions |
|
25000000 |
Redeemable
Cumulative Preference Shares |
Rs.2/-each |
Rs.50.000 millions |
|
|
|
|
|
|
|
Total |
|
Rs.1500.000 millions |
Issued Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
1227190692 |
Equity Shares |
Rs.1/- each |
Rs.1227.190 millions |
|
|
|
|
|
Subscribed and Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
1227190692 |
Equity Shares |
Rs.1/- each |
Rs.1227.190 millions |
|
60500 |
Less: Face Value of Shares Forfeited |
|
Rs.0.060 Million |
|
|
Add: Forfeited Shares Accountant |
|
Rs.0.030 Million |
|
|
Less: Calls – in – Arrears |
|
Rs.0.680 Million |
|
|
|
|
|
|
|
Total |
|
Rs.1226.480 millions |
NOTE:
Ř
491766770 Equity Shares of Rs.1/- each fully
paid-up allotted as fully paid-up Bonus Shares by Capitalisation of General
Reserve and Capital Redemption Reserve
Ř
6000000 Equity Shares of Rs.1/- each fully
paid-up allotted pursuant to a contract for consideration other than cash.
Ř
187678350 Equity Shares of Rs.1/- each fully
paid-up allotted to the share holders of erstwhile Indo Gulf Corporation
Limited pursuant to the scheme of arrangement without payment being received in
cash.
Ř
2995220 Shares of Rs.1/- each fully paid-up
allotted to the share holders of erstwhile Indian Aluminium Company Limited Pursuant
to the scheme of arrangement without payment being received in cash.
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES
OF FUNDS |
31.03.2008 |
31.03.2007 |
31.03.2006 |
|
|
SHAREHOLDERS
FUNDS |
|
|
|
|
|
1] Share Capital |
1226.480 |
1043.250 |
985.660 |
|
|
2] Share Application Money |
1395.020 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
171736.650 |
123137.120 |
95076.860 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
NETWORTH
|
174358.150 |
124180.370 |
96062.520 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
62054.230 |
64102.030 |
28480.470 |
|
|
2] Unsecured
Loans |
21231.610 |
9583.980 |
20553.910 |
|
TOTAL BORROWING
|
83285.840 |
73686.010 |
49034.380 |
|
|
DEFERRED TAX
LIABILITIES |
13236.740 |
11258.010 |
12333.590 |
|
|
|
|
|
|
|
TOTAL
|
270880.730 |
209124.390 |
157430.490 |
|
|
|
|
|
|
|
APPLICATION OF FUNDS
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block]
|
78093.370 |
70067.090 |
67828.000 |
|
Capital work-in-progress
|
11198.690 |
14764.250 |
8329.170 |
|
|
|
|
|
|
|
INVESTMENT
|
141079.860 |
86753.170 |
39713.110 |
|
DEFERREX TAX ASSETS
|
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES
|
|
|
|
|
|
|
Inventories
|
50979.060
|
43153.140
|
40950.880
|
|
|
Sundry Debtors
|
15650.220
|
15045.020
|
12484.010
|
|
|
Cash & Bank Balances
|
1469.770
|
6654.960
|
9172.850
|
|
|
Other Current Assets
|
623.040
|
1188.080
|
2447.340
|
|
|
Loans & Advances
|
9794.600
|
11742.200
|
7972.410
|
Total Current Assets
|
78516.690
|
77783.400
|
73027.490
|
|
Less: CURRENT LIABILITIES & PROVISIONS
|
|
|
|
|
|
|
Current Liabilities
|
28947.790
|
27433.790
|
21995.620
|
|
|
Provisions
|
9060.090
|
12841.410
|
9531.660
|
Total Current Liabilities
|
38007.880
|
40275.200
|
31527.280
|
|
Net Current Assets
|
40508.810
|
37508.200
|
41500.210
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES
|
0.000 |
31.680 |
60.000 |
|
|
|
|
|
|
|
TOTAL
|
270880.730 |
209124.390 |
157430.490 |
|
PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2008 |
31.03.2007 |
31.03.2006 |
|
Sales Turnover
|
192010.270 |
183129.880 |
113964.760 |
|
Other Income
|
4929.370 |
3700.690 |
2439.110 |
|
Total Income
|
196939.640 |
186830.570 |
116403.870 |
|
|
|
|
|
|
|
Profit/ (Loss) Before Tax
|
30256.060 |
35046.250 |
21026.750 |
|
Provision for Taxation
|
1646.670 |
9403.000 |
4471.250 |
|
Profit/ (Loss) After Tax
|
28609.390 |
25643.250 |
16555.500 |
|
|
|
|
|
|
|
Export Value
|
64350.000 |
69775.370 |
NA |
|
|
|
|
|
|
|
Import Value
|
109628.960 |
98850.020 |
NA |
|
|
|
|
|
|
|
Expenditures:
|
|
|
|
|
|
|
(Increase) / Decrease in Stocks
|
(1370.260)
|
(4425.170)
|
(10338.400) |
|
|
Raw Materials Consumed
|
0.000
|
110553.140
|
65829.480 |
|
|
Goods Purchased
|
925.180
|
230.190
|
204.190 |
|
|
Payments to and Provision for Employees
|
0.000
|
5195.810
|
4627.620 |
|
|
Other Operating Expenses
|
158444.270
|
31426.050
|
27591.240 |
|
|
Interest and Finance Charges
|
2806.300
|
2423.880
|
2251.680 |
|
|
Depreciation
|
5878.090
|
5528.020
|
5166.770 |
|
|
Impairment
|
0.000
|
852.40
|
44.540 |
|
|
Extraordinary Item
|
168053.84
|
0.000
|
(30.220) |
Total Expenditure
|
166683.580 |
151784.320 |
95346.900 |
|
QUARTERLY RESULTS
|
PARTICULARS |
|
|
30.06.2008 |
|
Type |
|
|
1st Quarter |
|
Sales Turnover |
|
|
46475.300 |
|
Other Income |
|
|
2146.600 |
|
Total Income |
|
|
48621.900 |
|
Total Expenditure |
|
|
36984.900 |
|
Operating Profit |
|
|
11637.000 |
|
Interest |
|
|
761.200 |
|
Gross Profit |
|
|
10875.800 |
|
Depreciation |
|
|
1568.000 |
|
Tax |
|
|
2340.200 |
|
Reported PAT |
|
|
6967.600 |
KEY RATIOS
|
PARTICULARS |
31.03.2008 |
31.03.2007 |
31.03.2006 |
|
Debt Equity Ratio |
0.53 |
0.56 |
0.50 |
|
Long Term Debt Equity Ratio |
0.43 |
0.43 |
0.48 |
|
Current Ratio |
1.17 |
1.21 |
1.40 |
|
TURNOVER RATIOS |
|
|
|
|
Fixed Assets |
1.74 |
1.82 |
1.27 |
|
Inventory |
4.42 |
4.69 |
3.77 |
|
Debtors |
13.56 |
14.31 |
11.99 |
|
Interest Cover Ratio |
11.78 |
15.46 |
10.35 |
|
Operating Profit Margin (%) |
18.71 |
21.82 |
23.34 |
|
Profit Before Interest and Tax Margin (%) |
15.89 |
19.02 |
19.10 |
|
Cash Profit Margin (%) |
16.57 |
15.82 |
17.80 |
|
Adjusted Net Profit Margin (%) |
13.75 |
13.02 |
13.57 |
|
Return on Capital Employed (%) |
14.57 |
21.86 |
17.96 |
|
Return on Net Worth (%) |
19.26 |
23.29 |
19.17 |
LOCAL AGENCY
FURTHER INFORMATION
HISTORY:
Subject is the metals Flagship Company of the Aditya Birla
Group, a story unfolds with the establishment of the company in the year 1958. The
company is an industry leader in aluminium and copper. The company's aluminium
units across the country encompass the entire gamut of operations from bauxite
mining, alumina refining, aluminium smelting to downstream rolling, extrusions,
foils and alloy wheels, along with captive power plants and coal mines and the
Copper unit produces copper cathodes, continuous cast copper rods along with
other by-products, including gold, silver and DAP fertilisers.
The Company commenced its production at Renukoot (Uttar Pradesh) with an
initial capacity of 20,000 mtpa of aluminium metal and 40,000 mtpa of alumina
during the year 1962. Later in the year 1965 downstream capacities of the
company was commissioned in Rolling and Extrusion Mills at Renukoot. As a strategic
and farsighted move, Hindalco started Renusagar Power Plant in the year 1967.
During the year 1994, the company made a huge expansion, modernisation and
diversification programme in the working areas. Foil plant of the company came
to existence at Silvassa in the year 1998 and the Hindalco attained an ISO
14001 EMS certification in the same year. In 1999, Aluminium alloy wheels
production was commenced at Silvassa and the brownfield expansion of metal
capacity was made at Renukoot to 242,000 tpa. The company acquired the
controlling stake in Indian Aluminium Company, Limited (Indal) during the
period of 2000 with 74.6 per cent equity holding. Company entered 'The Asia Top
25' list of the CFO Asia Annual Report Survey, the only Indian company in the year
2001.
During the year 2002, the brownfield expansion of the company at an outlay of
Rs.18000.000 Millions, the ninth potline was commissioned, the major corporate
restructuring to create a non-ferrous metals powerhouse: amalgamation of Indo Gulf
Corporation Limited, copper business, Birla Copper, with company in April of
the year. Company made an open offer to acquire additional equity to make Indal
a wholly owned subsidiary. The company acquired Nifty Copper Mine through
Aditya Birla Minerals Limited, (ABML, formerly Birla Minerals Resources Pty.
Limited) in the year 2003, and in the same year, ABML acquired the Mount Gordon
copper mines in November, company becomes majority stakeholder in Utkal
Alumina, a joint venture with Alcan also the brownfield expansion of aluminium
smelter at Renukoot to 345,000 tpa was made. The Company amalgamated the Indo
Gulf's copper business in February 2003 and oppositely divested its 8.6 per
cent holding in Indo Gulf Fertilisers Limited.
The Scheme of arrangement announced to merge Indal in the year 2004, and all
businesses of Indal, except for the Kollur Foil Plant in Andhra Pradesh, merged
with Company during the year 2005. Aditya Birla Group to set up a world-class
aluminium project in Orissa at a project cost of about Rs.110000.000 Millions.
The MoUs was signed with state governments of Orissa and Jharkhand for setting
up Greenfield alumina refining, smelting and power plants in the same year 2005
and commissioned the Copper III expansion, took total capacity to 500,000 tpa.
Company won the first prize for National Energy Conservation 2005 in aluminium
sector given by the Government of India, Ministry of Power and received
Greentech Environment Excellence Gold Award 2005 from Greentech Foundation, New
Delhi.
The Nifty sulphide operation commenced ore production from stopping in December
2005 and concentrate production in March 2006. During the period of 2006,
company made a Joint Venture with Almex USA for manufacture of high strength
aluminium alloys for applications in aerospace, sporting goods and surface
transport industries. The Company signed a MoU with the government of Madhya
Pradesh for a Greenfield aluminium smelter in the Siddhi district of the state.
In May of the year 2006, the company entered into a JV with Essar Power (M.P.)
Limited to develop and operate Coal Mines at Mahan, Madhya Pradesh and supply
coal to the proposed aluminium smelter and power complex in Madhya Pradesh. The
Company acquired an aluminium rolling mill and wire rods facility situated at
Mouda (Nagpur) in March of the same year from Asset Reconstruction Company
(India) Limited (ARCIL), belonging to Pennar Aluminium Company Limited. The IT
department of company received prestigious IT certificates BS15000 (IT
services), ISO 9001 (Software development) and BS7799 (Information security) in
the year 2006. Company Renukoot IT department is the first in the group as well
as in India to be recommended for all these certifications in an integrated
manner.
Novelis became a company subsidiary with the completion of the acquisition
process in May of the year 2007. The transaction makes company is the world's
largest aluminium rolling company and one of the biggest producers of primary
aluminium in Asia, as well as being India's leading copper producer. The
company acquired Alcan's 45 per cent equity stake in the Utkal Alumina project,
thereby making company the 100 per cent project owner for the same during the
year 2007. Company awarded the CII-Sorabji Green Business Centre 'National Award
for Excellence in Water Mangement 2007' and also the Company won the
prestigious 'D.L. Shah National Award for Economics of Quality' given by
Quality Council of India during the year 2007. Indian Aluminium Company
Limited, a subsidiary of the company, has been amalgamated with the company
from April 2007. The technology contracts for the smelter and alumina have been
finalised with Aluminium Pechiney and Alcan respectively during the year
2008.
Company’s journey has been challenging at times, but truly exhilarating. The
fact file of the company in two areas covers, World's largest aluminium rolling
company, one of the biggest producers of primary aluminium in Asia, ISO
9001:2000 and 14001 certified, One of the lowest-cost producers of aluminium in
the world and India's leading copper producer, India's largest copper smelting
and refining plant at Dahej, Gujarat, with two copper mines in Australia, ISO
9001,14001 and OSHAS 18001 certified, Smelting and refining capacity 500,000
tpa, the largest single location smelter in the world. Domestic consumption
growth for both aluminium and copper augurs well for Hindalco, which has
embarked on the growth plan through low cost Greenfield projects of the
company.
BUSINESS
OVERVIEW:
This has been a momentous year for the Company as it embarks on its
journey to be a global integrated non ferrous major. The Company successfully
completed the acquisition of Novelis, the world’s leading Aluminium rolling
company. The Company is now a USD 17.5 billion multinational with footprints in
five continents across the globe.
The year was an extremely challenging one with unprecedented
economic volatility in commodity and money markets. This was triggered by the
sub-prime crisis, concerns about US recession and runaway increase in oil
prices. On this backdrop, the Company’s performance has been truly impressive.
Exponential growth was what they targeted and achieved. Consolidated sales grew
from Rs.193160.000 Millions in FY07 to Rs.600130.000 Millions which, in turn,
drove an EBITDA increase from Rs.48400.000 Millions to Rs.72910.000 Millions.
Net profit was flat (Rs.23870.000 Millions in FY08 vis-ŕ-vis Rs.26860.000
Millions in FY07) mainly because of the interest servicing charges on the debt
funded acquisition of Novelis with an enterprise value of USD 6 billion. The
sharp increase in interest cost during the year under review is likely to be
moderated as they replace the bridge financing with a permanent capital
structure.
They have reported, for the first time, consolidated financial
results post the Novelis acquisition. The Novelis SEC filing is also in the
public domain. Novelis has reported significant improvement in their financial
results:
Normalised operating EBIT increase by 62% driven by:
·
Reduced exposure to price ceiling contracts
·
Improved pricing and mix
·
Lower operating costs
Free cash flow improvement of USD 164 million on the back of
–
- Better working capital management
- Stronger earnings performance
- Re-financing of senior secured credit facilities
The performance of the Aluminium business segment of
Standalone Company during FY08 was severely impacted as virtually all
macroeconomic parameters turned adverse. Rupee appreciation, import duty cut,
and unrelenting cost push squeezed margins at both ends. Average LME was
marginally lower than the previous year but still remained strong. This
strength could not, however, be translated into the key value driver viz.
domestic realization due to appreciation of the Indian rupee by over 11% and
fall in import duty from 8.7% to 5.1%. The result was a sharp 11% drop in
average rupee realization per tonne of primary metal as compared to FY07. These
adversities were mitigated in part by :
- Higher volumes mainly in primaries, flat rolled products and
extrusions. This places in perspective the benefits of the brownfield
expansions and low-cost inorganic acquisitions implemented earlier as part
of the strategic growth plan.
- Improved plant efficiencies.
- Better working capital management.
They increased top-line by producing more metal and
converting it into value added downstream products. Brownfield expansion of the
Hirakud smelter and de-bottlenecking at Renukoot helped to produce 478 KT of
hot metal against 443 KT in the previous year. The Company recorded highest ever
primary aluminium, sheet and extrusion production in this year. Product as well
as market mix was enriched and export markup enhanced. The conversion of HSS to
pre-baked pots at Hirakud reduced unit power consumption and rendered the
operations environmentally benign. Energy efficiency was improved across the
board which helped mitigate the impact of spiraling prices of crude and other
petro products. The cost push was contained in some measure through targeted
cost management initiatives.
The EBIT margin of their Aluminium business is amongst the
highest relative to domestic and global peers which underlines their strategic
thrust and commitment to combine cost leadership and portfolio de-risking. As a
result, their EBIT margin is relatively less impacted by LME and rupee
volatility compared to pure play aluminium companies.
The Copper business significantly improved its underlying operating
performance despite tightness in the concentrate market and sharply escalating
input costs. Tc/Rc, the key value driver for toll-smelting operations at Dahej,
plummeted to near all time lows. A strong rupee and lower import duty
differential adversely impacted top and bottom lines of the business. The
significantly high Copper LME vis-ŕ-vis FY07 led to a quantum jump in sales
with only marginal impact on profits as LME is a pass-through for the Copper
business. In fact, a higher LME actually leads to higher working capital
funding requirements.
Despite all macroeconomic parameters turning adverse, the Copper
business managed to maintain its EBIT margins and ROCE. This was driven
entirely by strong operating performance:
- Significant
higher asset utilization - Copper cathode production was up by 12% mainly
on the back of Smelter 3 ramp up and CC Rod production was increased by
28% through full use of their own capacities and judicious outsourcing.
- Higher
realization driven by improved product and market mix – we sold more CC
Rods and increased proportion of duty paid sales.
- Sharp
improvement in by-product realization by negotiating attractive sulphuric
prices in a buoyant market.
- Sharp
reduction in conversion cost even in nominal terms driven by much better
operating efficiencies especially in the areas of captive power generation
and energy consumption.
- Effective
working capital management despite the higher funding requirements
triggered by a higher LME.
BUSINESS PERFORMANCE
REVIEW:
ALUMINIUM BUSINESS
ALUMINIUM INDUSTRY
REVIEW
The year 2007 started on a buoyant note. However, towards second quarter
of 2007, the US started to feel the effects of subprime crisis. By the end of
the year the crisis deepened and the US economy underwent a considerable slow
down.
This was followed by an unprecedented turmoil in the financial
markets. The sub prime crisis had a cascading effect on the global credit
markets and suddenly the world started facing a significant credit crunch. The
slow down in the US was followed by a decline in economic growth in most of the
Europe. By the beginning of 2008, the emerging economies also felt the effect
of slowdown. In FY08, Indian economy grew at 8.7%. The financial markets
witnessed buoyant capital inflows due to buoyant economic growth and outlook.
The weakness in US economy and fed rate cuts accelerated the demand for rupee.
This resulted in sharp appreciation of Rupee against US dollar. This sharp
currency appreciation within a short span had a significant effect on all the
exporters.
Demand and Market: In CY 2007, the world
aluminium consumption stood at 37.8 Mn tonnes against production of 38.1 Mn
tonnes. The consumption was 10% higher than the preceding year. This growth was
primarily led by China, which grew at a phenomenal 37.7% in CY2007, more than
compensating for demand weakness in the US.
India too, registered a strong double digit growth in 2007 in line
with buoyant economic growth. The strong industrial growth, infrastructure
initiatives and electrification drive resulted in good demand for aluminium.
Automobile and transportation sectors also supported the aluminium demand.
Globally, Aluminium production increased in line with the consumption. The
primary aluminium production for the year was 38.1 Mn tonnes. China again led
the production growth in 2007 with an increase of 34% over 2006 production.
Higher aluminium prices in the early part of the year also led to some capacity
restarts which further supported the production. In FY08 LME aluminium prices
fluctuated significantly between USD 2400 and USD 3100 per tonne. The average
LME aluminium price for the year was almost flat at FY 08 levels.
The depreciating dollar resulted in a sharp fall in domestic
aluminium realizations as the prices are dollar denominated. Continuing with
the stated policy of import duty reduction, the government cut the customs duty
on aluminium. The effective import duty for aluminium declined from 8.1% to
5.7%.
As a result of these macro economic factors, average aluminium
realisations for FY08 declined sharply by11% as compared with FY07
realisations. During FY08, crude prices also witnessed a sharp surge. The
rising crude prices resulted in higher prices for its derivatives. The soaring
crude also had a cascading effect in terms of higher transportation costs and
higher prices of alternate energy sources like coal. All these led to a
significant cost push for the aluminium industry.
OPERATIONAL REVIEW
On this backdrop your company’s performance was commendable and its
performance was amongst the best performance in the industry. The aluminium
business operational performance was exceptional and recorded highest ever
production across all product segments with
- Highest
ever Primary Aluminium production at 477,723 T
- Highest
ever FRP production at 215,198 T
- Highest ever Extrusion Production at 43,315 T
FINANCIAL PERFORMANCE
Net Sales and Turnover from their Aluminium business in FY08 stood
at Rs.71,450 million as compared with Rs73,444 million in FY07 a drop of 3%,
primarily on account of a sharp decline in domestic metal realization,
primarily a fall out of sharp depreciation in US $ even as LME was almost
flat.In US$ terms the revenues increased by 9%. Earnings before interest &
taxes (EBIT) declined by 17% to Rs24,231 million due to pressure on realization
and increased costs. The cost increase was primarily on account of a sharp
surge in crude prices, which resulted in high prices of its derivatives and
also increased prices of alternative fuels such as coal. All the aluminium
producers across the Globe experienced a sharp fall in EBIT margins. The
decline in the case of your company was amongst the lowest in the industry.
This was possible primarily on account of higher production and sales volumes
and enriched product mix as discussed earlier.
The other cost management measures that helped in containing EBIT
fall were
- Improvement
in operational efficiency in Power consumption, Carbon consumption etc.
- Cost
effective sourcing of key Raw materials like Bauxite.
The sustainability of the company’s profitability is reflected in
healthy EBITDA margins of 39% despite all the adversities.
ALUMINIUM OUTLOOK
In 2008, the global aluminium demand is expected to remain strong
in spite of a marginal slow down in the demand growth rate. The Chinese demand
though expected to remain strong; the growth rate is expected to decline marginally
from CY07 levels. The US demand weakness will continue. In India, the demand is
expected to increase in line with economic growth rate. Over medium term,
thrust on power sector spending will spur the aluminium demand.
Aluminium production is expected to keep pace with growing demand
with new capacities coming up in Middle East and Asia. However, globally, in
the recent past, the aluminium industry is witnessing production cut downs due
to power shortages in various parts of the world. The cost push witnessed by
the industry in 2007 is expected to continue with crude prices still continuing
with its northward journey. Higher input costs such as bauxite, fuel oil, coal
tar pitch and caustic soda, rising freight, diminishing availability and rising
costs of various fuels/power will continue to push operating costs up. The
rising costs and supply constrains will determine the floor for the prices. A
reasonably strong demand along with supply constraints and rising cost is
expected to keep the prices strong. Rupee exchange rate will continue to have a
significant bearing on domestic realisations.
BUSINESS OUTLOOK
The company has demonstrated its sustainability in the wake of
macroeconomic adversities such as sharp unfavourable exchange rate movement,
inflationary pressures. It is leveraging its fundamental strengths to continue
to deliver the shareholders value. The company will strive to continuously
improve its performance despite strong inflationary pressures.
The Company has adopted a consistent strategy to achieve global
size and scale through the acquisition of Novelis. This complements its ongoing
brown field and greenfield expansion plans in the upstream aluminium business.
COPPER BUSINESS REVIEW
INDUSTRY REVIEW
Global refined copper consumption increased from 17.4 million
tonnes in 2006 to 18.1 million tonnes in 2007. The consumption as has been the
case with most metals was driven by a strong demand from China. Elsewhere in
Asia too, copper registered a strong consumption growth despite a decline in
growth in Japan. In the US in 2007, demand increased moderately after a fall
over two successive years.
In India the copper demand grew strongly due to strong growth in
the end user segments such as Power cables, housing and construction and
infrastructure. The growth rate in 2007 was at over 24% albeit on a smaller
base.
Globally, supplies could not match demands and as a result
inventory declined. The copper smelters faced paucity of concentrates and also
margin pressures which resulted in limiting their output. Speculative interest
increased in most base metals in the aftermath of sub prime crisis and global
equity meltdown. As a result, copper prices remained strong. Despite strong
copper prices, custom smelters faced margin pressures. TC/RC charges remained
depressed. Strong demand for copper resulted in an increased consumption for
copper concentrate. However, mines supply could not keep pace with smelters
requirement for concentrate due to delay in commissioning, cost and time over
runs etc. As a result TC/RC for the year declined further from 2006 levels.
FINANCIAL
The sharp rise in LME coupled with higher sales volumes led to
higher revenues. However, for custom smelters like your company, copper prices
are just a pass through and the margins are largely determined by TC/RC and as
a result a sharp increase in LME copper prices did not have any positive impact
on their profitability.
The adverse impact of lower TC/RC, unfavourable currency movement
and higher input costs was largely offset through improved operating
efficiencies and better working capital management.
COPPER OUTLOOK:
The refined copper demand is expected to remain strong on the back
of continued consumption growth from China. Strong demand from emerging
economies notably BRIC countries would offset the US consumption weakness.
The inventories are expected to remain low on account of supply
constraints due to shortage of concentrate. Concentrate availability is
expected to remain tight on account of delay in the expected new mine
capacities due to difficult terrain, associated risk factors and
socio-political factors. Higher capital costs, declining ore grades and labour
related issues in some of the major copper producing countries are expected to
restrict the availability and put TC/RC depressed.
Indian refined copper consumption is expected to continue to grow
strongly in line with the economy growth. Buoyant industrial growth, housing
and infrastructural spends and thrust on power sectors is expected to drive the
demand over medium term.
The copper consumption in India is relatively low. The per capita
copper consumption stand at less than a Kg as compared to 7Kgs in the US or
even 3.6 Kgs in China and hence the growth potential is enormous.
BUSINESS OUTLOOK
The Company is confidant of continuing the good performance. In
FY09, TcRc is expected to remain tight. However, the Company will continue to
strive to improve operating efficiencies and reduce conversion costs. Strong growth
in byproduct demand and the Company’s production flexibility with respect to
various value added byproducts will increase the available options for profit
and cash flow improvements.
FINANCIAL PERFORMANCE
The company’s consolidated revenues crossed 15 USD billion mark
during the year registering a year-onyear growth of 211% to Rs.600130.000
Millions from Rs.193160.000 Millions. The consolidated EBIDTA was at
Rs.72910.000 Millions.
The Chairman’s letter to shareholders and the Management’s Discussion
& Analysis, which form a part of this Annual Report, provide the strategic
direction and a more detailed analysis on the performance of individual
businesses and their outlook.
Post the acquisition of Novelis effective May 15, 2007, Company is
now a global player with a strong presence in five continents and with a
product portfolio which is a natural hedge against the volatility of aluminium
prices. The improved results came on the back of strong operational focus and
increase in capacities in fast growing markets of Asia and South America. Total
shipments increased from 3113 kt to
3150 kt. Novelis countered inflation and challenging market conditions in
certain geographies with portfolio optimisation, price increases, working
capital improvements and reduction in corporate costs.
The Company’s exposure to contracts with metal price ceilings
reduced during the year. The benefits can be seen in increased revenues and
stronger cash flows.
The integration activities are proceeding smoothly and the acquisition
is expected to significantly enhance shareholder value.
SUBSIDIARY COMPANIES
A wholly owned subsidiary company namely A V Minerals (Netherlands)
B.V. has been incorporated in Netherlands in April 2007. The entire holding in
A V Metals Inc., a subsidiary of the Company in Canada has been transferred in
May 2007 to A V Minerals (Netherlands) B.V.
On 15th May, 2007, the Company acquired Novelis Inc., the world’s
largest aluminium rolled product manufacturer through its indirect wholly-owned
subsidiary A V Metals Inc. (Acquisition Sub) pursuant to a plan of arrangement
(Arrangement) entered into on 10th February, 2007 and approved by the Ontario
Superior Court of Justice, Canada on 14th May, 2007. A V Aluminum Inc is a
wholly owned subsidiary of A V Metals Inc which in turn is a wholly owned
subsidiary of A V Minerals (Netherlands) B.V.
Indian Aluminium Company, Limited ceased to be a susbsidary of your
company as it merged with the company. The amalgamation was made effective on
25th March, 2008 with appointed date as 1st April, 2007.
The Company has acquired the shareholding of Alcan Inc. consisting
of 78,564,384 equity shares of Rs.10/- each in Utkal Alumina International
Limited (Utkal). Consequently, Utkal is now a wholly owned subsidiary of the
Company.
The Company has entered into a joint venture partnership with Almex
USA Inc. (Almex), for the manufacture of high strength aluminium alloys for
applications in the aerospace, sporting goods and surface transport industries.
The joint venture has been named Hindalco-Almex Aerospace Limited. The Company
has 70 per cent equity participation, with Almex holding the balance 30 per
cent in the JV.
The Company has formed a joint venture company namely Tubed Coal Mines
Limited with The Tata Power Company Limited as per the condition of allotment
letter of Ministry of Coal for the purpose of exploration of the Coal block
allotted by the Government in the State of Jharkhand. Hindalco holds 60% stake
in the Joint venture and balance 40% is held by The Tata Power Company Limited.
The Company has formed a joint venture company namely east Coast
Bauxite Mining Company Private Limited with Orissa Mining Corporation Limited
to mine bauxite in the State of Orissa. Company holds 74% stake in the Joint
venture and balance 26% is held by Orissa Mining Corporation Limited.
Subject to receipt of the approval, aforesaid documents are not
being attached with the financial statements of the company. These documents
can be requested by any member, investor of the company/ subsidiary company.
Further, in line with the Listing Agreement and in accordance with the
Accounting Standard 21 (AS-21), Consolidated Financial Statements prepared by
the Company include financial information of its subsidiaries.
AWARDS & RECOGNITIONS
Several accolades have been conferred upon the Company, in
recognition of its contribution in diverse fields. A selective list:
Hirakud:
Hirakud Smelter - National Energy Conservation Award - First Prize
2007.
Hirakud Smelter - National Safety Award for performance year 2005
(presented in Oct 07) by Ministry of Labour & Employment, Govt of India.
Hirakud Power - CII - Orissa Award for Best Practices in
Environment, Safety, Health for the year 2007.
Hirakud Smelter was awarded the State level Safety Award for Best
Occupational Healthcare 2006 - presented in February 2008 at Bhubaneswar.
Muri:
Muri Alumina Plant selected for CII’s National Award for Excellence
in Water Management 2007 for both Within & Beyond the Fence 2007.
Belur
Belur Plant was selected for the National Safety Award for
outstanding performance in Industrial Safety as Runners Up for the performance
year 2005 in achieving the Lowest Average Frequency Rate (presented in October
2007, by the Ministry for Labour & Employment, Govt of India.
Belur Plant was a winner of the Green Tech Environmental Gold Award
in the Metals & Mining Sector for its outstanding achievement in
Environment Management during 2007 - 2008.
Belur Sheet Plant was adjudged the Winner of the “ CII – Eastern
Region Energy Conservation Award for 2007 – 2008 “.
Alupuram
Alupuram Complex awarded the Outstanding Safety Performance Award
2007 in the small scale Engineering Industrial category.
Talabira
Talabira Coal Mines won a host of Safety Awards, namely, First in
Working Face and Maintenance of Dozer & Payloader and Second in Dust
Suppression at the Annual Coal Mines Safety Fortnight 2008 organised by
Directorate of Mines Safety, Bhubaneswar and Chaibasa Region.
Durgmanwadi &
Kasarsada Mines
Durgmanwandi and Kasarsada Bauxite Mines have earned a host of
awards during the Mines Environment & Mineral Conservation Week programmes,
including Special Prize for being ranked First for 3 consecutive years in
Overall Performance along with other prizes for Safety and other mining
operations.
TRADE REFERENCE:
Ř Air Control and Chemical Engineering Company
Limited
Ř Alba Security Systems Private Limited
Ř Brassomatic Private Limited
Ř BVM Compresor Spares Syndicate
Ř Grip Engineers Private Limited
Ř Webb India Private Limited
Fixed Assets
Ř Tangible Assets
Ř Mining Rights
Ř Land and Site Development
Ř Buildings
Ř Plant and Machinery
Ř Vehicles and Aircraft
Ř Railway Sidings
Ř Furniture St Fittings
Ř Live Stock
Ř Road and Drainage
Ř Leased Plant and Machinery
Ř Intangible Assets
Ř Technological Licenses
Ř Computer Software
Website Details Attached:-
Profile
The company the metals flagship company of the Aditya Birla Group, is an
industry leader in aluminium and copper. A metals powerhouse with a
consolidated turnover in excess of US$ 14 billion, Hindalco is the world's largest
aluminium rolling company and one of the biggest producers of primary aluminium
in Asia. Its Copper smelter is the world's largest custom smelter at a single
location.
Established in 1958, the company commissioned its aluminium facility at
Renukoot in Eastern U.P. in 1962. Later acquisitions and mergers, with Indal,
Birla Copper and the Nifty and Mt.Gordon copper mines in Australia,
strengthened the company's position in value-added alumina, aluminium and
copper products, with vertical integration through access to captive copper
concentrates.
In 2007, the acquisition of Novelis Inc. a world leader in aluminium rolling
and can recycling, marked a significant milestone in the history of the
aluminium industry in India. With Novelis under its fold the company ranks
among the global top five aluminium majors, as an integrated producer with
lowcost alumina and aluminium facilities combined with high-end rolling
capabilities and a global footprint in 12 countries outside India. Its combined
turnover of US$ 14 billion, places it in the Fortune 500 league.
In May 2007, Novelis became the company subsidiary with the completion
of the acquisition process. The transaction makes The Company the world's
largest aluminium rolling company and one of the biggest producers of primary
aluminium in Asia, as well as being India's leading copper producer.
In May 2006, the company signed an MoU with the Government of Madhya
Pradesh for setting up a greenfield aluminium smelter and a captive power
plant. The company also entered into a joint venture with Essar Power (M.P.)
Limited to develop and operate coal mines at Mahan, Madhya Pradesh. The joint
venture will supply coal to the proposed aluminium smelter and power complex in
Madhya Pradesh
In May 2006, the company's copper mining subsidiary Aditya Birla
Minerals Limited (formerly Birla Mineral Resources Pty Limited) came out with
an equity offering and subsequent listing on the Australian Stock Exchange
(ASX)
In March 2006, the company acquired an aluminium rolling mill and wire
rods facility, from Asset Reconstruction Company (India) Limited (ARCIL),
belonging to Pennar Aluminium Company Limited
In January 2006, the company concluded 4:1 rights issue of its shares on
partly paid basis. It was the largest ever rights issue in the history of
corporate India and first one to issue partly paid instruments
In September 2005, the company split its shares in ratio of 10:1 in
order to enhance liquidity and to encourage participation from retail investors
In April 2005, the company signed an MoU to establish a world class
integrated aluminium project in the state of Orissa
In April 2005, the company entered into MOUs with the Orissa and Jharkhand
governments for setting up a greenfield alumina facility and aluminium facility
respectively, in the states
Hindalco's businesses
The
company in India enjoys a leadership position in aluminium and copper. The
company's aluminium units across the country encompass the entire gamut of
operations from bauxite mining, alumina refining, aluminium smelting to
downstream rolling, extrusions, foils and alloy wheels, along with captive
power plants and coal mines. The Birla Copper unit produces copper cathodes,
continuous cast copper rods along with other by-products, including gold,
silver and DAP fertilisers.
The
company is the world's largest aluminium rolling company and one of the biggest
producers of primary aluminium in Asia. In India, The company enjoys a
leadership position in speciality alumina, primary aluminium and downstream
products.
The
company 's major products include standard and speciality grade aluminas and
hydrates, aluminium ingots, billets, wire rods, flat rolled products,
extrusions, foil and alloy wheels
Copper
Hindalco's
Birla Copper unit at Dahej in Gujarat is the world's largest single location
custom copper smelter with 500,000 tpa capacity. The plant is backed by captive
power plants, oxygen plants, as also by product facilities for fertilisers and
precious metals. A captive jetty with cargo handling capacity of over four
million tpa, facilitates easy input of copper concentrate and other imported
raw materials.
The two copper mines in Australia were acquired in 2003. Birla Nifty
mine consists of an open-pit mine, heap leach pads and a solvent extraction and
electrowinning (SXEW) processing plant, which produces copper cathode. Birla
Nifty's copper cathode capacity is 25,000 tpa.
A copper sulphide deposit is located at the lower levels of the Nifty open pit
mine and an underground mine and concentrator have been developed to mine and
process ore from this deposit. The Nifty sulphide operation commenced ore
production from stoping in December 2005 and concentrate production in March
2006. With the start-up of the Nifty sulphide operation and its progressive
ramp up during FY2007, Aditya Birla Minerals (ABML) is entering a period of
rapid growth.
|
Division |
Capacity |
Location |
|
Alumina chemicals |
1,160,000 tpa |
700,000 tpa (Renukoot) |
|
110,000 tpa (Muri) |
||
|
350,000 tpa (Belgaum) |
||
|
Primary aluminium |
489,000 tpa |
373,000 tpa (Renukoot) |
|
|
||
|
1,02,000 tpa (Hirakud) |
||
|
14,000 tpa (Alupuram)1 |
||
|
|
||
|
Extrusions |
27,700tpa |
19,700tpa (Renukoot) |
|
8,000 tpa (Alupuram) |
||
|
Rolled products |
200,000 tpa |
80,000 tpa (Renukoot) |
|
45,000 tpa (Belur) |
||
|
45,000 tpa (Taloja) |
||
|
30,000 tpa (Mouda) |
||
|
Wire rods |
64,400 tpa |
40,000 tpa (Renukoot) |
|
10,000 tpa (Alupuram) |
||
|
14,400 tpa (Mouda) |
||
|
Aluminium foil |
11,000 tpa |
5,000 tpa (Silvassa)** |
|
6,000 tpa (Kalwa) |
||
|
Aluminium wheels |
300,000 pcs |
Silvassa |
|
Power |
1087.2 mw |
741.7mw (Renusagar) |
|
78 mw (Renukoot) |
||
|
267.5 mw (Hirakud) |
||
|
Copper cathodes |
500,000 tpa |
Dahej |
Additional 17,000 tpa thick gauge foil capacity at Silvassa
1. Alupuram capacities have been de-energised and are not included in
working capacity
2 For Taloja recycling plant
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] 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.48.01 |
|
UK Pound |
1 |
Rs.84.16 |
|
Euro |
1 |
Rs.65.20 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
9 |
|
OPERATING SCALE |
1~10 |
8 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
8 |
|
--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 |
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 |
|
73 |
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 |
|