MIRA
INFORM REPORT
|
Report Date : |
17.09.2008 |
IDENTIFICATION
DETAILS
|
Name : |
HINDUSTAN ZINC LIMITED |
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Registered Office : |
Yashad Bhawan,
Yashadgarh, Udaipur – 313004, Rajasthan |
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Country : |
India |
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Financials (as on) : |
31.03.2008 |
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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
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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 590000000 |
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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
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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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Corporate Office: |
Swaroop Sagar Road, Udaipur – 313004, Rajasthan, India |
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Tel. No.: |
91-294-2529182 |
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Fax No.: |
91-284-2523522 |
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MINING UNITS: |
Located at :
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SMELTING UNITS: |
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Exports
Office: |
Solitaire Corporate Park Business Square ‘C’ Wing, 2nd Floor,Andheri
Kurla Road, Chakala, Andheri (East),MUMBAI – 400 093 Fax 91-22-56434640 Email: exportzinc@vedanta.co.in |
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Marketing
Office : |
Solitaire Corporate ParkBusiness Square‘C’ Wing, 2nd Floor, Andheri
Kurla Road,Chakala, Andheri (East), MUMBAI – 400 093 Tel 91-22-56434500 Fax 91-22-56434640 Email: Puneet.jagatramka@vedanta.co.in |
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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
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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.
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 : |
A. K. Singh |
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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
(As on 31.03.2008)
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
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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 |
2820188 |
0.6674 |
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Banks, Financial Institutions, Insurance
Companies (Central/State Government Institutions/ Non-Government
Institutions) |
2160729 |
0.5114 |
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Flls |
10048642 |
2.3782 |
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Sub Total |
15029559 |
3.5570 |
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Others |
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Private corporate Bodies |
1827705 |
0.4325 |
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Indian Public |
6360307 |
1.5053 |
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NRIs/ OCBs |
188339 |
0.0446 |
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NRI Company |
14400 |
0.0034 |
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Bank Foreign |
1000 |
0.0002 |
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Foreign National Individual |
100 |
0.0000 |
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GOI – President of
India |
124795059 |
29.5351 |
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Sub
Total |
133186910 |
31.5211 |
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Total
|
422531900 |
100.0000 |
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
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Suppliers : |
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No. of Employees : |
12531 |
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Bankers : |
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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: |
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Joint Ventures : |
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Subsidiaries : |
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Associates : |
India Foils Limited |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
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|
500000000 |
Equity Shares |
Rs.10/- each |
Rs.5000.000 millions |
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Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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422531900 |
Equity Shares |
Rs.10/- each |
Rs.4225.319
millions |
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Of
the above:
a) 21370000 equity shares of Rs.10/- each
allotted for consideration other than cash.
b) 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 |
31.03.2008 |
31.03.2007 |
31.03.2006 |
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SHAREHOLDERS FUNDS |
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|
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1] Share Capital |
4225.300 |
4225.300 |
4225.300 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
114256.600 |
72045.300 |
30072.500 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
118481.900 |
76270.600 |
34297.800 |
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LOAN FUNDS |
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1] Secured Loans |
0.000 |
0.000 |
0.000 |
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2] Unsecured Loans |
3.900 |
3.900 |
5580.200 |
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TOTAL BORROWING |
3.900 |
3.900 |
5580.200 |
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DEFERRED TAX LIABILITIES |
4596.800 |
3006.300 |
2413.800 |
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TOTAL |
123082.600 |
79280.800 |
42291.800 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
36971.600 |
22356.000 |
18603.000 |
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Capital work-in-progress |
4654.600 |
6349.900 |
578.000 |
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INVESTMENT |
63324.500 |
44033.000 |
16048.800 |
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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 |
5181.00
|
4992.800
|
3831.000
|
|
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Sundry Debtors |
4436.600
|
5566.200
|
6898.500
|
|
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Cash & Bank Balances |
13627.800
|
1197.000
|
740.300
|
|
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Other Current Assets |
30.000
|
6.900
|
1.700
|
|
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Loans & Advances |
3840.900
|
3046.600
|
1622.300
|
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Total
Current Assets |
27116.300
|
14809.500
|
13093.800 |
|
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Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
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Current Liabilities |
7748.600
|
6418.100
|
4158.100
|
|
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Provisions |
1235.800
|
1849.500
|
1873.700
|
|
Total
Current Liabilities |
8984.400
|
8267.600
|
6031.800 |
|
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Net Current Assets |
18131.900
|
6541.900
|
7062.000
|
|
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
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TOTAL |
123082.600 |
79280.800 |
42291.800 |
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PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2008 |
31.03.2007 |
31.03.2006 |
|
|
Sales Turnover |
78777.700 |
85602.200 |
38902.600 |
|
|
Other Income |
8516.300 |
2312.700 |
1158.100 |
|
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Total Income |
87294.000 |
87914.900 |
40060.700 |
|
|
|
|
|
|
|
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Profit/(Loss) Before Tax |
59853.400 |
64536.600 |
22295.700 |
|
|
Provision for Taxation |
15892.700 |
20118.500 |
7570.900 |
|
|
Profit/(Loss) After Tax |
43960.700 |
44418.100 |
14724.800 |
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|
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|
Export Value |
22574.800 |
42135.800 |
8623.500 |
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Import Value |
3774.200 |
2571.300 |
1744.900 |
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Expenditures : |
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|
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Manufacturing Expenses |
18042.600 |
16843.500 |
12639.500 |
|
|
Administrative Expenses |
3278.200 |
2660.600 |
1647.700 |
|
|
Increase/(Decrease) in Finished Goods |
591.100 |
[569.100] |
[434.800] |
|
|
Salaries, Wages, Bonus, etc. |
3081.900 |
2598.100 |
2055.900 |
|
|
Finance |
241.700 |
284.400 |
474.000 |
|
|
Depreciation & Amortization |
2205.100 |
1560.800 |
1382.700 |
|
Total Expenditure |
27440.600 |
23378.300 |
17765.000 |
|
QUARTERLY RESULTS
|
PARTICULARS |
|
|
30.06.2008 |
|
Type
|
|
|
1st
Quarter |
|
Sales Turnover |
|
|
16436.600 |
|
Other Income |
|
|
2093.800 |
|
Total Income |
|
|
18530.400 |
|
Total Expenditure |
|
|
6659.500 |
|
Operating Profit |
|
|
11870.900 |
|
Interest |
|
|
68.600 |
|
Gross Profit |
|
|
11802.300 |
|
Depreciation |
|
|
686.400 |
|
Tax |
|
|
2466.800 |
|
Reported PAT |
|
|
8478.100 |
KEY RATIOS
|
Year |
31.03.2008 |
31.03.2007 |
31.03.2006 |
|
Debt-Equity Ratio |
0.00 |
0.05 |
0.21 |
|
Long Term Debt-Equity Ratio |
0.00 |
0.05 |
0.21 |
|
Current Ratio |
1.68 |
1.41 |
1.38 |
|
TURNOVER RATIOS |
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|
Fixed Assets |
2.01 |
2.84 |
1.61 |
|
Inventory |
17.18 |
20.90 |
12.10 |
|
Debtors |
17.47 |
14.79 |
9.13 |
|
Interest Cover Ratio |
248.64 |
227.92 |
48.04 |
|
Operating Profit Margin(%) |
71.31 |
71.99 |
55.66 |
|
Profit Before Interest And Tax Margin(%) |
68.78 |
70.30 |
52.47 |
|
Cash Profit Margin(%) |
52.84 |
49.87 |
37.12 |
|
Adjusted Net Profit Margin(%) |
50.32 |
48.17 |
33.93 |
|
Return On Capital Employed(%) |
61.71 |
111.61 |
68.62 |
|
Return On Net Worth(%) |
45.15 |
80.35 |
53.47 |
LOCAL AGENCY
FURTHER INFORMATION
History:
Subject a subsidiary of Sterlite Industries India Limited
was incorporated from the erstwhile Metal Corporation of India on 10th January
1966 as a Public Sector Undertaking. It is a vertically integrated company with
mining and smelting operations located mainly in the State of Rajasthan and in
the State of Andhra Pradesh. The Company owns captive zinc mines that supply
all of Company concentrate requirements for its smelters, it operates three
underground mines namely Sindesar Khurd, Rajpura Dariba, and Zawar Mines) and
one open cast mine Rampura Agucha Mine being one of the most cost-efficient
Zinc mines in the world. Also the company operates smelters, using Roast Leach
Electro-Winning (RLE), hydrometallurgical in Debari, Vizag and Chanderiya
Smelters, ISP pyrometallurgical (Chanderiya Lead Zinc Smelter) and Ausmelt
(Chanderiya Lead Smelter) process routes. HZL's product portfolio covers Zinc,
Lead, Silver, Cadmium and Sulphuric Acid, which all comes under the company's
two major business segment and the company also running R & D for
development processes.
The Research & Development Centre of the company was established in the
year 1977 at Debari, Udaipur (Rajasthan) and it is ISO 9001, 14001, OHSAS 18001
certified unit. An underground mine with onsite concentrator, and two vertical
access shafts were commissioned in the year 1983 as Rajpura Dariba Mine at
Rajasthan, India. The mine is processing as under vertical crater retreat and
blast hole stoping. Ore is crushed underground before hoisting and stockpiling
for secondary and tertiary crushing, which is ISO 9001:2000, ISO 14001:2004,
OHSAS 18001:1999, SA 8000: 2001 certified mine for various themes. Facilities
for production of cobalt and indigenous lead-zinc ores were commissioned during
the year. In-house technology for the recovery of cobalt was made possible
through R&D and Cooperation with BARC in the year 1990. During the year
1996, the company entered into a MOU with BHP minerals Limited Australia for
joint venture project for exploration of base precious minerals in Rajasthan.
In the same year another MOU was signed with Vigego, Vietnam and La-Sarce
France for a joint venture project for exploration at Pac-Lang Gold prospect in
Vietnam.
In 1997, Company closed its Degana Tungstan Mine in Rajasthan
due to its operations became uneconomical. A memorandum of understanding was
signed with Rajasthan State Mines and Minerals Limited (RSMML) for set up
Rs.33000.000 Millions -power projects near Udaipur in Rajasthan. The Company
has formed a joint venture with BRMG of France and Vietnam Rare & Precious
Minerals Corporation (VMC) to explore and develop gold mines in the Southeast
Asian country. The Rampura-Agucha mines of Company has been awarded ISO 9002
certificate for quality management system in the same year 1997 by SGS Yarsley
International Certificate Services Limited. In the year 1998, Crisil has
assigned a P1+ rating to the Rs.10-crore short-term deposit programme of
Hindustan Zinc. The Company Rashtriya Chemicals & Fertilisers (RCF) and Rajasthan
State Mines & Minerals (RSMML) have signed a memorandum of understanding
during the period of 1999 for sum of Rs 300-crore diammonium phosphate (DAP)
project in Rajasthan. During the year 2002, Sterlite acquired 26% stake in
Hindustan Zinc from the Government of India by the consideration of Rs.4450
million. Consequent to disinvestments a further 20% is bought from market
through open offer.
A year later, in 2003, again the Sterlite Industries acquired 18.92% stake in
the company from Government of India. Company Smelter, Vishakapatnam was
accredited with ISO 9000:2000 certification for its quality management system.
During the year 2005, Chanderiya Hydrometallurgical Zinc Smelter (Hydro I)
(170000 Tons Per Annum) of the company was commissioned along with a 154 MW
coal based captive power plant. Subject bagged the Environment Excellence Award
2005-06 by FIMI in the mechanized category of mines to Rampura Agucha Mine.
Company Chanderiya Ausmelt Lead Smelter was started in the year 2006, and also
the Sindesur Khurd Mine began production in the same year. The Vizag Smelter of
the company got Golden Peacock Award for Environment Management in 2006.
During the period of 2007, the company commissioned Chanderiya
Hydrometallurgical Zinc Smelter (Hydro II) with production capacity of 170,000
tpa and 63.2 MW Wind Energy Project was made to order. The company received
Asian Power Plant of the Year 2007 and also Best Emission Reduction Project in
Asia by Asian Power Charlton Media Group, Singapore to Chanderiya Captive Power
Plant. Companyis owner of Golden Peacock Award for Corporate Governance 2007 in
metal sector by Institute of Directors. Subject has achieved the prestigious
London Metal Exchange ('LME') registration for the lead ingots produced at its
Chanderiya lead smelter in August of the year 2007.
The company's product Special High Grade Zinc produced in its
Hydrometallurgical Zinc Plant at the Chanderiya Lead-Zinc Smelter Complex has
been successfully registered with the LME on 26 March 2008. The brand name of
this product is 'HZL SHG 99.995'. Ongoing exploration activities of the company
have yielded significant success with an increase of 28.7 million tonnes to its
reserves and resources, prior to a depletion of 5.8 million tonnes in FY 2008.
As on April 2008, the 88,000 tonnes debottlenecking project was completed
shortly by the company, two months ahead of schedule. As part of Company’s
commitment to green energy, out of a total planned capacity of 124 MW of wind
power, 107 MW has been successfully commissioned as of March 2008, and rest of
17 MW will start soon.
Subject has under in expansion projects that will take its total integrated
zinc-lead capacity to 1,065,000 tonnes per annum with fully integrated mining
and captive power generation capacities, thereby making company the World's
largest integrated zinc-lead producer by 2010. Company deliberates to maintain
its superior cost leadership position among the zinc producers in the world.
Two brownfield smelter projects, which will increase the production capacities
of zinc and lead by 210,000 tonnes and 100,000 tonnes respectively, will be
undertaken at Rajpura Dariba in Rajasthan, India. The total investment of the
above said projects is estimated at Rs.36000.000 Millions. Company’s all the
above are to be a world-class zinc company, creating value, leveraging mineral
resources and related core competencies.
Subject was incorporated from the erstwhile Metal Corporation of India on 10th January 1966 as a Public Sector Undertaking. In April 2002, Sterlite Industries (India) Limited made an open offer for acquisition of shares of the company consequent to the disinvestment of Government of India’s stake (26%) including management control to Sterlite and pursuant to the regulations of SEBI Regulations 1997 acquired additional 20% of shares from public. In August 2003, Sterlite Industries acquired additional shares to the extent of 18.92% of the paid up capital from Government of India (GOI).
Milestones (Post
Disinvestment)
2007 Chanderiya Hydrometallurgical
Zinc Smelter (Hydro II) commissioned
63.2 MW Wind Energy Project commissioned
2006 Chanderiya
Ausmelt Lead Smelter commissioned.
Sindesur Khurd Mine began production.
2005 Chanderiya
Hydrometallurgical Zinc Smelter (Hydro I) commissioned along with a 154 MW coal
based captive power plant.
2003 Sterlite
Industries acquires 18.92% stake in Hindustan Zinc from Government of India
2002 Sterlite
acquired 26% stake in Hindustan Zinc from the Government of India. Consequent to
disinvestment a further 20% is bought from market through open offer.
PERFORMANCE REVIEW:
During the year the global market for zinc remained subdued. The appreciation
of the rupee also created further pressures on realisations. However, the Company
maintained its streak of volume growth at the back of higher output from mines
and smelters and new capacity coming on stream. The Company produced a total
refined zinc metal production in FY 2008 of 426,323 tonnes, up by 22.4%
compared with 348,316 tonnes in FY 2007. The production of lead during FY 2008
was 58,247 tonnes compared with FY 2007 production of 44,552 tonnes, an
increase of 30.7%. The increase was primarily due to production from the
Ausmelt plant which is now stabilised.
EXPLORATION:
Ongoing exploration activities have yielded significant success with an
increase of 28.7 million tonnes to its reserves and resources, prior to a
depletion of 5.8 million tonnes in FY 2008. Contained zinc-lead metal has
increased by 4.0 million tonnes, prior to a depletion of 0.6 million tonnes
during the same period. Total reserves and resources at 31 March 2008 were
232.3 million tonnes containing 27.5 million tonnes of zinc-lead metal. The
reserves and resources position has been independently reviewed and certified
as per JORC standard.
SALES:
Sales of zinc and zinc concentrate (metal in concentrate) increased by 13% from
482,172 tonnes in 2006-07 to 544,660 tonnes in 2007-08 and sales of lead and
lead concentrate (metal in concentrate) increased by 30% from 73,267 tonnes in
2006-07 to 95,278 tonnes in 2007-08.
FINANCIAL PERFORMANCE:
Despite of a 22.4% increase in saleable zinc and 30.7% increase in saleable
lead production volumes and stable operating costs, PBDIT in 2007-08 was lower
at Rs.62310.000 Millions compared with 2006-07 primarily due to the significant
reduction in LME zinc prices by about 17% and the appreciation of the Indian
rupee against the US dollar by more than 11%.
As a result of poor realisations of zinc, net sales fell by 8 per cent from
Rs.85600.000 Millions in 2006-07 to Rs.78780.000 Millions in 2007-08. However,
the Company was able to contain the impact of poor market for zinc and high
energy prices by a combination of increased production volumes, improvements in
operational efficiencies and high by-product credit realisations. Net profit
came down only marginally from Rs.44420.000 Millions in 2006-07 to Rs.43960.000
Millions 2007-08.
The Company continues to remain a debt free Company. The Company's financial performance
has been discussed in detail in the chapter on Management Discussion and
Analysis which forms a part of this Annual Report.
PROJECTS:
The Company successfully completed several projects ahead of schedule and
within budget. These include commissioning of 170,000 tonnes per annum Hydro II
zinc smelter and 80 megawatts (MW) captive thermal power plant at Chanderiya;
wind power project of 50.4 MW in Gujarat and 18.4 MW in Karnataka. In the first
quarter of FY 2009, the Company concluded the expansion of Rampura Agucha Mine
from 3.75 mtpa to 5.00 mtpa, 88,000 tpa of zinc debottlenecking at Chanderiya
and Debari along with the commissioning of new roaster at Debari two months
ahead of schedule, increasing their total metal production capacity to 754,000
tpa.
In line with achieving their stated production capacity goal of 1 million
tonnes per annum and supported by their strong reserves and resources position
as discussed earlier, they recently announced expansion projects at Company
that will take their total integrated zinc-lead capacity to 1,065,000 tonnes
per annum with fully integrated mining and captive power generation capacities,
thereby making it the world's largest integrated zinc-lead producer by 2010.
Two brownfield smelter projects, which will increase the production capacities
of zinc and lead by 210,000 tpa and 100,000 tpa respectively, along with 2x80
MW captive power plant will be undertaken at Rajpura Dariba in Rajasthan,
India.
They also expect to increase their silver production from the current levels of
nearly 2.8 million ounces per year to a level of approximately over 16.1
million ounces per year.
To support the increased smelting capacities, The Company will expand its ore
production capacity at the Rampura Agucha mine from 5 mtpa to 6 mtpa. Ore
production at the Sindesar Khurd mine will be increased from 0.3 mtpa to 1.5
mtpa. The company also plans to start mining activity at the Kayar mine which
will have a production capacity of 0.3 mtpa.
OTHER INFORMATION:
|
Contingent
Liabilities: |
31.03.2008 (Rs. in millions) |
|
Claims against the company not acknowledged
as debts |
|
|
- Suppliers and contractors |
461.900 |
|
- Employees, ex-employees and others |
112.800 |
|
- Land tax |
2.700 |
|
Guarantees issued by the banks |
235.500 |
|
Sales tax demands |
318.300 |
|
Excise Duty Demands |
473.900 |
|
Bills Discounted |
3271.400 |
|
Claim for compensation (CLZS land) |
NA |
ABOUT HOLDING
COMPANY:
Vedanta Resources Plc, United Kingdom, the ultimate holding
company is listed on the London Stock Exchange and for compliance with United
Kingdom regulation, its consolidated financial statements includes the restated
financial statements of Hindustan Zinc Limited as per International Financial
Reporting Standards (IFRS). Additionally, Sterlite Industries (India) Limited,
the holding company, is listed in the New York Stock Exchange and for
compliance with the United States’ regulations, its consolidated financial
statements includes the restated financial statements of Hindustan Zinc Limited
as per the United States Generally Accepted Practices.
TRADE
REFERENCE:
- Sarvodaya Engineering Works
- Oswal Engineering and Chemical Company
- Vasudha Udhyog
- Bansal Industrial Gases
- Om Shree Durga Hardcoke Manufacturing Company
- Vishwakarma Foundry and Engineering
- Siddhant Chemicals (Private) Limited
FIXED
ASSETS
- 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
- Vehicles.
CMT REPORT (Corruption,
Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts, India Prisons Service,
Interpol, etc.
1] INFORMATION ON
DESIGNATED PARTY
No exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent
government authority for any violation of anti-corruption laws or international
anti-money laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE
GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE
RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.46.63 |
|
UK Pound |
1 |
Rs.83.76 |
|
Euro |
1 |
Rs.66.49 |
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 |
NO |
|
--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 |
|