MIRA
INFORM REPORT
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Report Date : |
07.08.2010 |
IDENTIFICATION DETAILS
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Name : |
HINDALCO INDUSTRIES LIMITED |
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Registered
Office : |
Century Bhavan, 3rd Floor, |
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Country : |
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Financials (as
on) : |
31.03.2009 |
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Date of
Incorporation : |
15.12.1958 |
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Com. Reg. No.: |
11-11238 |
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CIN No.: [Company Identification
No.] |
L27020MH1958PLC011238 |
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TAN No.: [Tax Deduction &
Collection Account No.] |
MUMI05707C MUMH00493D |
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PAN No.: [Permanent Account No.] |
AAACH1201R |
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Legal Form : |
Public Limited
Liability Company. The Company’s
Shares are Listed on the Stock Exchanges |
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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
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MIRA’s Rating : |
Aa (75) |
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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 950333000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a part of Aditya Birla Group. It is a well established and a
reported company having fine track. Financial position of the company appears
to be sound. Trade relations are reported as fair. Business is active.
Payments are reported to be regular and as per commitments. The company can be considered normal for business dealings at usual
trade terms and conditions. |
NOTES :
Any query related to this report can be made
on e-mail: infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – April 1, 2010
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Country Name |
Previous Rating (31.12.2009) |
Current Rating (01.04.2010) |
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A1 |
A1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
LOCATIONS
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Registered Office/ Marketing Head Office: |
Century Bhavan, 3rd
Floor, |
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Tel. No.: |
91-22-24308491 /
92 / 93 / 66626666 |
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Fax No.: |
91-22-24227586 /
24362516 |
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E-Mail : |
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Website : |
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Corporate
Office 1/ - Marketing Head
Office (Copper) : |
Aditya Birla Centre, III Floor, B Wing, S. K. Ahire Marg,
Worli, Mumbai – 400030, |
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Tel No.: |
91-22-66525000/ 24995000 |
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Fax No.: |
91-22-66525801/ 24995801 |
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Email : |
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Website: |
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Corporate
Office 2: |
Foil and Packaging Business, Kalwa Works, Thane
Belapur Road, Near Vitawa Village, Kalwa, Thane-400 605, Maharashtra, India |
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Tel. No.: |
91-22-25347151 |
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Fax No. : |
91-22-24227586 |
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Email : |
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Principal
office and Works / Renusagar Power Division |
District
Sonbhadra, P. O. Renukoot – 231217, Mirzapur, |
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Tel. No.: |
91-5446-252077-9/
272501-5 |
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Fax No.: |
91-5446-252107 /
252427/ 272382 |
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E-Mail : |
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Birla Copper
Division: |
P. O. Dahej,
Lakhigam, Dist. Bharuch - 392130, |
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Tel. No.: |
91-2641-256004-06/251009 |
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Fax No.: |
91-2641-251002-3 |
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E-Mail : |
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Foil and Wheels
Division: |
Village Khutli,
Khanvel, Silvassa – 396 230, |
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Tel. No.: |
91-260-2677021-4 |
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Fax No.: |
91-260-2677025 |
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Export Office: |
9/1, |
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Tel. No.: |
91-33-22480949 /
22200464 |
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Fax No.: |
91-33-22200214 |
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Email: |
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Regional
Office 1 (North) (Aluminium) : |
Vandana House, 5th
floor, 11 Tolstoy Marg, |
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Tel. No.: |
91-11-42200204/ 228/
230/ 271/ 200 |
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Fax No.: |
91-11-23721595 |
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Email: |
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Regional
Office 2 (East) (Aluminium) : |
Industry House, 9th
Floor, 10, |
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Tel. No.: |
91-33-22809710 |
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Fax No.: |
91-33-22886139 |
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Email: |
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Regional
Office 3 (South) (Aluminium): |
Industry House, 7th
Floor, 45, |
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Tel. No.: |
91-80-40416010/
21/ 22/ 00 |
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Email: |
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Regional
Office 4 (West) ((Aluminium: |
Ahura Centre, 1st
Floor, 82, |
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Tel. No.: |
91-22-66917031/
30/ 37/ 40/ 00 |
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Fax No.: |
91-80-22533086 |
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Email: |
Rajiv.parulekar@adityabirla.com |
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Factory : |
ALUMINIUM
AND POWER Renukoot
Plant P.O. Renukoot -231217, Dist Sonbhadra Uttar Pradesh, Tel : 91-5446-252077-9 Fax: 91-5446-252107 Renusagar
Power Division P. O. Renusagar, Dist. Sonbhadra Tel : 91-5446-272502-5 Fax: 91-5446272382 Alupuram
Smelter Alupuram P.B. No. 30, Kalamassery 683 104, Dist:
Ernakulam, Tel: 91-484-2532441 Fax: 91-484-2532468 Hirakud
Smelter Hirakud 768 016, Dist: Sambalpur, Tel: 91-663-2481307 Fax: 91-663-2481356 Hirakud
Power Post Box No.12, Hirakud 768 016, Dist: Sambalpur, Tel: 91-663-2481408 Fax: 91-663-2481342 Talabira
Mines Talabira-1, Qrs. No. A6/1, Saraswati Vihar, P.O. Sankarma,
Dist. Sambalpur, Tel: 91-663-2540426 Fax: 91-663-2540526 COPPER: Birla
Copper Division P.O. Dahej, Lakhigam Post, Dist. Bharuch – 392 130, Tel: 91-2641- 256004-06/ 251009 Fax: 91-2641- 251002-3 CHEMICALS: Muri
Alumina Post Chotamuri-835 101, Dist: Phone: 91-6522- 244396 Fax: 91-6522-244231 Village Yamanapur , Tel: 91-831-2472716 Fax: 91-831-2472728 Chandgad
Mines At Post: Chandgad 416509, Dist: Tel/Fax: (02320) 213342 Durgmanwadi
Mines At Post Radhanagri, Dist: 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 and Wheels Division, Village Khutli, Khanvel,
Silvassa-396 230, U.T., Tel: 91-260-2677021 – 4 Fax: 91-260-2677025 Belur
Sheet 39, 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, Tel: 91-22-2741 2261/ 66292929 Fax: 91-22-2741 2430 Kalwa
Foil Thane Tel: 91-22- 25347151/52 Fax: 91-22- 25348798 Alupuram
Extrusions Alupuram, P.B. No.30, Kalamassery - 683 104, Dist:
Ernakulam, Tel: 91-484-2532441 Fax: 91-484- 2532468 Mouda
Unit Village Dahali, 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
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Name : |
Mr. Kumar Mangalam
Birla |
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Designation : |
Chairman |
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Address : |
16-A, IL-Palazzo, Little |
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Date of Birth/Age : |
42 Years |
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Date of Appointment : |
16.11.1992 |
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Name : |
Mrs. Rajashree Birla |
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Designation : |
Non-Executive Director |
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Address : |
16-A, IL- Palazzo, Little |
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Date of Birth/Age : |
64 Years |
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Date of Appointment : |
15.03.1996 |
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Name : |
Mr. D. Bhattacharya |
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Designation : |
Managing Director |
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Address : |
14/A, Woodlands, |
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Date of Birth/Age : |
61 Years |
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Date of Appointment : |
30.04.2003 |
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Name : |
Mr. A.K. Agarwala |
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Designation : |
Non-Executive Director |
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Address : |
“Haveli”, Flat No.3, L.D. Ruparel Marg, Mumbai – 400
006, |
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Date of Birth/Age : |
76 Years |
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Date of Appointment : |
11.09.1998 |
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Name : |
Mr. C.M. Maniar |
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Designation : |
Non-Executive Director |
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Address : |
Garden House, 1st Floor, Dadyseth, 2nd |
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Date of Birth/Age : |
73 Years |
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Date of Appointment : |
08.03.1983 |
KEY EXECUTIVES
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Name : |
Mr. E.B. Desai |
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Designation : |
Non-Executive Director |
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Address : |
Sonarica, 81-A, |
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Date of Birth/Age : |
78 Years |
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Date of Appointment : |
05.04.1984 |
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Name : |
Mr. S.S. Kothari |
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Designation : |
Non-Executive Director |
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Address : |
87-B, Gaurav Nagar, Civil Lines, Jaipur - 302 006, |
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Date of Birth/Age : |
87 Years |
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Date of Appointment : |
22.12.1988 |
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Name : |
Mr. M. M. Bhagat |
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Designation : |
Non-Executive Director |
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Address : |
13, |
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Date of Birth/Age : |
76 Years |
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Date of Appointment : |
16.03.1996 |
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Name : |
Mr. K. N. Bhandari |
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Designation : |
Non-Executive Director |
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Address : |
5, New |
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Date of Birth/Age : |
67 Years |
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Name : |
Mr. N. J. Zhaveri |
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Designation : |
Non-Executive Director |
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Name : |
Mr. S. Talukdar |
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Designation : |
Group Executive President and Chief Financial Officer |
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Date of Birth/Age : |
57 Years |
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Qualification : |
B.Sc., A.C.A. |
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Experience : |
30Years |
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Date of Appointment : |
01.10.1986 |
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Name : |
Mr. R. Ram |
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Designation : |
Senior President and CFO |
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Name : |
Mr. Vinit Kaul |
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Designation : |
Chief People Officer |
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Name : |
Mr. R .K. Kasliwal |
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Designation : |
Group Executive President and Chief Financial Officer |
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Date of Birth/Age : |
64 Years |
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Qualification : |
B.Com, F.C.A. |
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Experience : |
41 Years |
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Date of Appointment : |
04.12.1967 |
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Name : |
Mr. R. S. Dhulkhed |
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Designation : |
President (Operation) |
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Name : |
Mr. Shashi K. Maudgal |
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Designation : |
Chief Marketing Officer |
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Date of Birth/Age : |
55 Years |
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Qualification : |
B.Tech. (Chem. Engg.), P.G. Diploma (Marketing and
Finance) |
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Experience : |
30 Years |
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Date of Appointment : |
14.02.2001 |
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Name : |
Mr. Shankar Ray |
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Designation : |
President (Business Projects) |
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Name : |
Mr. S. M. Bhatia |
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Designation : |
President (Foil and Wheel) |
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Date of Birth/Age : |
55 Years |
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Qualification : |
B.Sc. Engg. (Mech.) |
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Experience : |
34 Years |
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Date of Appointment : |
01.09.2004 |
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Name : |
Mr. Vinod Sood |
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Designation : |
Joint President (Chemical and International Trade) |
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Name : |
Mr. Anil Kumar Sinha |
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Designation : |
President (Human Resources) |
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Name : |
Mr. D.K. Kohly |
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Designation : |
Chief Operating Officer |
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Name : |
Mr. Ashok Machher |
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Designation : |
Joint President (F and C) |
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Name : |
Mr. S.N. Bontha |
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Designation : |
CEO |
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Name : |
Mr. S.N. Jena, |
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Designation : |
Chief Operating Officer |
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Name : |
Mr. Dilip Gaur, |
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Designation : |
Group Executive President |
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Name : |
Mr. Shambhu Sharma |
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Designation : |
President and Chief Operating Officer |
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Name : |
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Designation : |
Joint President (Finance and Commercial) |
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Name : |
Mr. J.P. Paliwal |
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Designation : |
Joint Executive President (Commercial) |
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Name : |
Mr. B.M. Sharma |
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Designation : |
Chief Marketing Officer |
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Name : |
Mr. Anil Malik |
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Designation : |
Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 30.06.2010
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Names of Shareholders |
No. of Shares |
Percentage of Holding |
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(A) Shareholding of Promoter and Promoter Group |
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2,398,696 |
0.14 |
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595,082,362 |
33.98 |
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16,316,130 |
0.93 |
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16,316,130 |
0.93 |
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613,797,188 |
35.04 |
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Total shareholding of Promoter and Promoter Group (A) |
613,797,188 |
35.04 |
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(B) Public Shareholding |
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59,165,356 |
3.38 |
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21,147,866 |
1.21 |
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287,480 |
0.02 |
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223,296,161 |
12.75 |
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516,762,694 |
29.50 |
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820,659,557 |
46.86 |
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102,115,060 |
5.83 |
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150,248,364 |
8.58 |
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10,832,530 |
0.62 |
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53,829,577 |
3.07 |
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11,095,637 |
0.63 |
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8,141,469 |
0.46 |
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34,592,471 |
1.98 |
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317,025,531 |
18.10 |
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Total Public shareholding (B) |
1,137,685,088 |
64.96 |
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Total (A)+(B) |
1,751,482,276 |
100.00 |
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(C) Shares held by Custodians and against which Depository Receipts
have been issued |
161,994,048 |
- |
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Total (A)+(B)+(C) |
1,913,476,324 |
- |
(1) Indian
Individuals / Hindu Undivided Family
TrustsBUSINESS DETAILS
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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 |
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Products : |
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Exports : |
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Countries : |
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Imports : |
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Countries : |
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PRODUCTION STATUS
Particulars in respect of Goods manufactured: -
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Class of goods |
Installed Capacity |
Actual Production |
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Aluminium Metal |
48800 |
523453 |
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Rolled Products |
205000 |
181784 |
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Extruded Products |
31000 |
35895 |
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Conductor Redraw Rods |
56400 |
74968 |
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Aluminium Foil |
40000 |
22046 |
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Aluminium Wheel |
300000 Pcs |
141030 Pcs |
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Hydrate and Alumina |
1500000 |
1237284 |
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Electricity |
1109.2 |
8827 |
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Electricity (Co-generation) |
242.8 |
1446 |
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Continuous Cast Copper Rods (CCR) |
97200 |
145542 |
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Copper cathodes |
500000 |
300862 |
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Sulphuric Acid |
670000 |
999253 |
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Phosphoric Acid |
180000 |
80245 |
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DAP and complexes |
400000 |
170176 |
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Gold |
15 |
4.872 |
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Silver |
150 |
37.307 |
The Installed Capacity is as certified by the Management and license capacity is not given as licensing is not applicable.
* Installed capacity of Hirakud Smelter increased.
** Capacity increased by technological up gradation of existing capacities.
*** Capacity increased by 3,300 MT due to addition of one Extrusion Press at Renukoot.
**** Installed capacity of Muri increased.
# Includes 64 MT (Previous Year Nil) converted from outside party, 2753 MT (Previous year 2774 MT) being production out of customers’ material and 30438 MT (Previous year 36067 MT) transferred for captive consumption.
@ Include 23 MT (Previous year 179 MT) converted from outside party and 81 MT (Previous year 41 MT) transferred for captive consumption.
Alumina includes 10 17211 MT (9 50081 MT) transferred for own consumption/ further processing.
$ Includes 191 MT (previous year 87 MT) being production out of customers material / transferred for own consumption/ further processing.
Production of CCR, Copper cathodes, Sulphuric acid, and Phosphoric acid include 178 MT, 150444 MT, 260448 MT, 80245 MT (Previous year Nil, 1 44964 MT, 245092 MT and 66677 MT) respectively which have been captively consumed / to be consumed.
During the year production and standardization loss of DAP and complexes is 336 MT (Previous Year is 1428 MT).
## Previous year figures have been regrouped / rearranged wherever necessary.
GENERAL INFORMATION
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No. of Employees : |
12000 |
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Bankers : |
Plc, 19, |
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Facility: |
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Banking
Relations : |
Good |
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Auditors : |
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Name : |
Singhi and Company Chartered Accountant |
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Cost Auditors: |
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Name : |
R. Nanabhoy and Company Chartered Accountant |
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Address : |
Mumbai |
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Name : |
Mani and Company Chartered Accountant |
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Address : |
Kolkata |
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Memberships : |
Confederation of
Indian Industry |
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Collaborators : |
Kaiser
Engineering Corporation, |
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Joint
Ventures: |
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Group
Companies : |
Associates/Subsidiaries
: v Aditya Birla
Minerals Limited v Birla (Nifty)
Pty Limited v Birla
Maroochydore Pty Limited v Birla Mt Gordon
Pty Limited v Birla Resources
Pty Limited v v Aditya Birla
Chemicals ( v Hindalco - Almex
Aerospace Limited v Indal Exports
Limited v Lucknow Finance
Company Limited v Minerals and
Minerals Limited v Renuka
Investments and Finance Limited v Renukeshwar
Investments and Finance Limited v Suvas Holdings
Limited v Utkal Alumina
International Limited v East Coast
Bauxite Mining Company Private Limited v Tubed Coal Mines
Limited v A V Minerals ( v A V Metals Inc. v A V Aluminum
Inc. v HAAL ( v Novelis Inc. v Novelis Belgique
SA v Novelis Benelux
NV v Albrasilis -
Aluminio do Brasil Industria e Commercia Limited v Novelis do
Brasil Limited v 4260848 Canada
Inc. v 4260856 Canada
Inc. v Novelis Cast
House Technology Limited v Novelis No. 1
Limited Partnership v Novelis Foil v Novelis Lamines v Novelis PAE SAS v Novelis
Aluminium Beteiligungs GmbH v Novelis
Deutschland GmbH v Novelis
Aluminium Holding Company v Novelis Italia
SpA v Novelis
Luxembourg SA v Alcom Nikkei
Specialty Coatings Sdn Berhad v
40) Aluminium Company of v Al Dotcom Sdn
Berhad v Novelis ( v Novelis de
Mexico SA de CV v Novelis Korea
Limited v Novelis v Novelis AG v Novelis
Switzerland SA v Novelis
Technology AG v Novelis
Automotive UK Limited v Novelis Europe
Holdings Limited v Novelis UK
Limited v Aluminium
Upstream Holdings LLC ( v Eurofoil, Inc. ( v Logan Aluminium
Inc. ( v Novelis
Corporation ( v Novelis Brand
LLC ( v Novelis PAE Corp
( v Novelis South v Novelis Madeira,
Unipessoal, Limited v
Novelis Services Limited. |
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Trust of the
Company |
Trident Trust |
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Joint Ventures |
v
IDEA Cellular Limited.
(up to 31st December, 2008) v
Hydromine Global
Minerals GMBH Limited v
Mahan Coal Limited |
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Associates of
the Company |
v Aditya Birla Science and Technology Company Limited v Consorcio Candonga v France Aluminium Recyclage SA v Aluminium Norf GmbH v Deutsche Aluminium Verpackung Recycling GmbH v
Mini MRF LLC ( v
IDEA Cellular Limited (w.e.f. 1st January,
2009) |
CAPITAL STRUCTURE
As on 18.09.2009
Authorised Capital: Rs.2150.000 millions
Issued, Subscribed and Paid-up Capital: Rs.1913.462 millions
As on 31.03.2009
Authorised Capital:
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
1950000000 |
Equity Shares |
Re.1/- each |
Rs.1950.000
Millions |
|
25000000 |
Redeemable Cumulative
Preference Shares |
Re.2/-each |
Rs.50.000
Millions |
|
|
Total |
|
Rs.2000.000 Millions |
Issued Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
1701535825 |
Equity Shares of Re.1/- each |
Re.1/- each |
Rs.1701.536
Millions |
|
2032734 |
6% Redeemable Cumulative Preference Shares |
Re.2/- each |
Rs.4.100 Millions |
|
|
Total |
|
Rs.1705.636
Millions |
Subscribed and Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
1700817056 |
Equity Shares fully paid up |
Re.1/- each |
Rs.1700.817
Millions |
|
546249 |
Less: Face Value of Shares Forfeited |
|
Rs.0.500 Million |
|
|
Add: Forfeited Shares Accountant |
|
Rs.0.200 Million |
|
|
Less: Calls – in – Arrears |
|
-- |
|
|
|
|
Rs.1700.517 Millions |
|
2032734 |
6% Redeemable Cumulative Preference Shares |
Re.2/-
each |
Rs.4.100 Millions |
|
|
Total: |
|
Rs.1704.617
Millions |
Notes:
1. Subscribed and Paid-up Equity Share Capital include:
I. 491766770 (Previous year 491766770) Equity Shares of Re. 1/- each fully paid-up allotted as fully paid-up Bonus Shares by Capitalisation of General Reserve and Capital Redemption Reserve.
II. 6000000 (Previous year 6000000) Equity Shares of Re. 1/- each fully paid-up allotted pursuant to a contract for consideration other than cash.
III. 187678350 (Previous year 187678350) Equity Shares of Re. 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.
IV. 2995220 (Previous year 2995220) Equity Shares of Re. 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.
V. 376 Equity Shares of Re. 1/- each fully paid-up allotted during the year to the share holders of erstwhile Indian Aluminium Company, Limited pursuant to the Scheme of Amalgamation without payment being received in cash.
2. Subscribed and Paid-up Preference Share Capital
includes:
I.
2032,734 6% Redeemable Cumulative Preference
Shares of Rs. 2/- each fully paid-up redeemable on 1st April 2009
allotted during the year to the share holders of erstwhile Indian Aluminium
Company, Limited pursuant to the
Scheme of Amalgamation without payment being received in cash.
As on 18.09.2009
Authorized Capital: Rs. 2150.000 Millions
Paid-up Capital: Rs. 1913.434 Millions
FINANCIAL DATA
[All figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2009 |
31.03.2008 |
31.03.2007 |
|
|
SHAREHOLDERS
FUNDS |
|
|
|
|
|
1] Share Capital |
1704.600 |
1226.480 |
1043.250 |
|
|
2] Share Application Money |
0.000 |
1395.020 |
0.000 |
|
|
3] Reserves & Surplus |
235878.600 |
171736.650 |
123137.120 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
237583.200 |
174358.150 |
124180.370 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
57132.300 |
62054.230 |
64102.030 |
|
|
2] Unsecured
Loans |
26110.600 |
21231.610 |
9583.980 |
|
|
TOTAL BORROWING |
83242.900 |
83285.840 |
73686.010 |
|
|
DEFERRED TAX
LIABILITIES |
14106.700 |
13236.740 |
11258.010 |
|
|
|
|
|
|
|
|
TOTAL |
334932.800 |
270880.730 |
209124.390 |
|
|
|
|
|
|
|
|
APPLICATION
OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED
ASSETS [Net Block] |
78869.700 |
78093.370 |
70067.090 |
|
|
Capital
work-in-progress |
13896.300 |
11198.690 |
14764.250 |
|
|
|
|
|
|
|
|
INVESTMENT |
191488.400 |
141079.860 |
86753.170 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT
ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
40701.400 |
50979.060 |
43153.140 |
|
|
Sundry
Debtors |
12012.200 |
15650.220 |
15045.020 |
|
|
Cash
& Bank Balances |
8437.200 |
1469.770 |
6654.960 |
|
|
Other
Current Assets |
517.800 |
623.040 |
1188.080 |
|
|
Loans
& Advances |
15730.500 |
9794.600 |
11742.200 |
|
Total Current Assets |
77399.100 |
78516.690 |
77783.400 |
|
|
Less:
CURRENT LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Current
Liabilities |
18689.100 |
28947.790 |
27433.790 |
|
|
Provisions |
8031.600 |
9060.090 |
12841.410 |
|
Total Current Liabilities |
26720.700 |
38007.880 |
40275.200 |
|
|
Net Current Assets |
50678.400 |
40508.810 |
37508.200 |
|
|
|
|
|
|
|
|
MISCELLANEOUS
EXPENSES |
0.000 |
0.000 |
31.680 |
|
|
|
|
|
|
|
|
TOTAL |
334932.800 |
270880.730 |
209124.390 |
|
PROFIT & LOSS
ACCOUNT
|
ARTICULARS |
31.03.2009 |
31.03.2008 |
31.03.2007 |
|
|
Sales
Turnover |
182196.500 |
192010.270 |
183129.880 |
|
|
Other
Income |
6366.500 |
4929.370 |
3700.690 |
|
|
Total Income |
188563.000 |
196939.640 |
186830.570 |
|
|
|
|
|
|
|
|
Profit/
(Loss) Before Tax |
26903.200 |
30256.060 |
35046.250 |
|
|
Provision
for Taxation |
4600.500 |
1646.670 |
9403.000 |
|
|
Profit/
(Loss) After Tax |
22302.700 |
28609.390 |
25643.250 |
|
|
|
|
|
|
|
|
Export
Value |
|
|
|
|
|
1) |
Export
of Goods on FOB |
51481.800 |
64342.600 |
|
|
|
Others |
62.200 |
07.400 |
69775.370 |
|
|
Total: |
51544.000 |
64350.000 |
69775.370 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Import
Value |
|
|
|
|
|
1) |
Raw
Materials |
79365.600 |
|
|
|
2) |
Coal |
2280.400 |
1596.500 |
|
|
3) |
Components
and Spare Parts |
640.500 |
1329.100 |
98850.020 |
|
4) |
Capital
Goods |
788.300 |
1234.700 |
|
|
5) |
Trading
Goods |
1126.300 |
905.000 |
|
|
6) |
Furnace
Oil |
305.000 |
63.100 |
|
|
|
Total: |
84506.100 |
109629.000 |
98850.020 |
|
|
|
|
|
|
|
Expenditures: |
|
|
|
|
|
|
(Increase)
/ Decrease in Stocks |
5207.100 |
(1370.260) |
(4425.170) |
|
|
Raw
Materials Consumed |
0.000 |
0.000 |
110553.140 |
|
|
Goods Purchased |
1130.400 |
925.180 |
230.190 |
|
|
Payments
to and Provision for Employees |
0.000 |
0.000 |
5195.810 |
|
|
Other
Operating Expenses |
145500.300 |
158444.270 |
31426.050 |
|
|
Interest
and Finance Charges |
3369.300 |
2806.300 |
2423.880 |
|
|
Depreciation |
6443.400 |
5878.090 |
5528.020 |
|
|
Impairment |
09.300 |
0.000 |
852.40 |
|
|
Extraordinary
Item |
0.000 |
168053.84 |
0.000 |
|
Total Expenditure |
161659.800 |
166683.580 |
151784.320 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2009 |
30.09.2009 |
31.12.2009 |
31.03.2010 |
|
Type |
1st Quarter |
2nd Quarter |
3rd Quarter |
4th Quarter |
|
Gross
Sales |
1185.000 |
1625.600 |
1384.200 |
1470.000 |
|
Other Operating
Income |
0.600 |
1.400 |
3.400 |
5.700 |
|
Other Income
|
0.000 |
0.000 |
(0.100) |
0.100 |
|
Total
Income |
1138.900 |
1555.100 |
1330.200 |
1403.900 |
|
Total
Expenditure |
953.800 |
1304.700 |
1111.500 |
1183.700 |
|
PBIDT |
185.100 |
250.400 |
218.700 |
220.200 |
|
Interest |
53.000 |
48.300 |
37.300 |
44.500 |
|
PBDT |
132.100 |
202.100 |
1813.400 |
175.700 |
|
Depreciation |
32.000 |
32.600 |
33.700 |
32.900 |
|
Tax |
25.100 |
39.400 |
40.600 |
25.300 |
|
Fringe Benefit
Tax |
0.000 |
0.000 |
0.000 |
0.000 |
|
Deferred
Tax |
3.000 |
1.700 |
3.800 |
11.700 |
|
Reported Profit
After Tax |
72.000 |
128.400 |
103.300 |
105.800 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2009 |
31.03.2008 |
31.03.2007 |
|
PAT / Total Income |
(%) |
11.83
|
14.53 |
13.73 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
14.77
|
15.76 |
19.14 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
53.09
|
74.69 |
93.44 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.11
|
0.17 |
0.28 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
0.46
|
0.70 |
0.92 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
2.90
|
2.07 |
1.93 |
LOCAL AGENCY FURTHER INFORMATION
HISTORY
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
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
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
An industry leader in aluminium and copper
An industry leader in aluminium and copper, Subject Industries Limited, the
metals flagship company of the Aditya Birla Group is the world's largest
aluminium rolling company and one of the biggest producers of primary aluminium
in
Established in 1958,
we commissioned our aluminium facility at Renukoot in eastern
The acquisition of
Novelis Inc. in 2007 positioned us among the top five aluminium majors
worldwide and the largest vertically integrated aluminium company in
Subject's businesses — Creating superior value
Subject is one of the
leading producers of aluminium and copper. Our aluminium units across the globe
encompass the entire gamut of operations, from bauxite mining, alumina refining
and aluminium smelting to downstream rolling, extrusions, foils, along with
captive power plants and coal mines. Our copper unit, Birla Copper, produces
copper cathodes, continuous cast copper rods and other by-products, such as
gold, silver and DAP fertilisers
Our units are ISO 9001:2000, ISO 14001:2004 and OHSAS 18001 certified. Several
units have gone a step further with an integrated management system (IMS),
combining ISO 9001, ISO 14001 and OHSAS 18001 into one business excellence
model. We have been accorded the Star Trading House status in
Aluminium
Subject's major products include standard and speciality grade aluminas and
hydrates, aluminium ingots, billets, wire rods, flat rolled products,
extrusions and foil.
The integrated
facility at Renukoot houses an alumina refinery and an aluminium smelter, along
with facilities for the production of semi-fabricated products, namely, redraw
rods, flat rolled products and extrusions. The plant is backed by a
co-generation power unit and a 742 MW captive power plant at Renusagar to
ensure the continuous supply of power for smelter and other operations.
A strong presence
across the value chain and synergies between operations has given us a dominant
share in the value-added products market. As a step towards expanding the
market for value-added products and services, we have launched various brands
in recent years — Everlast roofing sheets, Freshwrapp kitchen foil and
Freshpakk semi-rigid containers.
Copper
Birla Copper, Subject’s copper unit, is located at Dahej in
Birla Copper also produces precious metals, fertilisers and sulphuric and
phosphoric acid. The unit has captive power plants for continuous power
generation and a captive jetty to facilitate logistics and transportation.
Birla Copper upholds its longstanding reputation for quality copper cathodes
and continuous cast copper rods by assuring its management processes meet the
highest standards. It has acquired certifications such as ISO-9001:2000
(Quality Management Systems), ISO-14001:2004 (Environmental Management System)
and OHSAS-
18001:2007 (Occupational Health and Safety Management Systems).
Mines
Subject acquired two Australian copper mines, Nifty and
The
the operation produced copper cathode through the ferric leach process.
In 2004, a copper
concentrator was commissioned to provide concentrate for use at Subject's operations
in Dahej. During FY2009,
Business Overview:
The global economy witnessed an unprecedented turmoil in the 2008-09.
What started as a sub prime crisis in the
The base metal prices which were around their all time highs in mid 2008
collapsed by over 50% in less than 6 months. The speed of this fall caught
everyone unaware.
Indeed this has been a tumultuous year for the Company as well and the
Company once again proved its mettle and delivered creditable financial
performance under extremely challenging circumstances.
The second half of the year witnessed unprecedented demand destruction
both in the global and domestic markets. The
Consolidated sales grew from Rs. 600130.000 Millions in FY08 to Rs.
656250.000 Millions. The PBIT stood at Rs. 6270.000 Millions which includes a
non-cash unrealized derivative loss of around Rs. 23810.000 Millions (USD 519
Million) vis-a-vis Rs. 120.000 Millions (USD 3 million) last year. These
derivatives are used to hedge exposures to aluminium, primarily related to
customer fixed-price contracts, other commodities and currency. The magnitude
of the mark-to-market loss on the company’s derivative portfolio primarily
reflects the dramatic downward movement in the LME price of aluminium.
Aluminium business revenue was Rs. 543060.000 Millions and PBIT at Rs. (4250.000)
Millions, primarily on account of non-cash unrealized derivative loss of around
Rs. 23810.000 Millions while Copper stood at Rs.107600.000 Millions with a PBIT
of Rs.3740.000 Millions.
The performance of the Aluminium business segment of Subject standalone
during FY09 was severely impacted due to a sharp fall in LME and in downstream
product demand. Average LME was lower by 15% than the previous year. However,
to some extent, depreciation of INR by 14% was beneficial resulting in a 9%
drop in domestic average rupee realization per tonne of primary metal as
compared to FY08. The demand for downstream value added products dropped
sharply and the sales were significantly lower by 17% compared to the previous
year.
These adversities were mitigated in part through:
- Higher
volumes, mainly in primaries. This emphasizes the benefits of the
brown-field expansions and their asset sweating strengths.
- Improved
plant efficiencies.
- Better
working capital management.
They increased aluminium business top-line by producing more metal both
through asset sweating, Brownfield expansion of the Hirakud smelter and
de-bottlenecking at Renukoot. They produced 523 KT of hot metal against 478 KT
in the previous year. The Company recorded highest ever primary aluminium
production this year and became the first Indian company to produce more than
0.5 Mn tonnes in a year. The turnover in the aluminium business grew by 6.4 per
cent to Rs. 76040.000 Millions vis-à-vis Rs. 71450.000 Millions in the
corresponding period of the previous year, on the back of the highest ever
metal volumes.
To mitigate the impact of sharp fall in realizations, several cost
control initiatives were successfully adopted. Energy efficiency was improved across
the board, which along with falling crude derivative prices, helped achieve
lower cost of production.
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 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. Although Tc/Rc, the key profit driver for tollsmelting operations
at Dahej, plummeted to near all time lows, the underlying operating performance
improved sharply. However, reported EBIT was lower due to charging of non cash
notional forex realignment losses on account of forex volatility. The steep
depreciation of the Indian Rupee against the US Dollar notionally impacted
Copper business by an estimated Rs. 1566.000 Millions on account of restatement
of net foreign currency exposure as on 31st March, 2009 as per AS 11
requirement.
BUSINESS
PERFORMANCE REVIEW:
Aluminium Business
Aluminium Industry
Review
In FY09, the sub prime crisis had a cascading effect on the global credit
markets and suddenly the world started facing a significant credit crunch. The
slowdown in the
In FY09, Indian economy grew at 6.7% against close to 9% growth achieved
in FY08. The financial markets witnessed a sharp reversal in the last few
years’ trend as capital outflows to safe heavens pulled down the markets
sharply.
Demand and Market:
In CY 2008, the world aluminium consumption stood at around 38 Mn tonnes
against production of 40 Mn tonnes. The consumption growth declined at -0.6%
against a growth of 10% in the preceding year.
In FY09, LME aluminium prices declined to sub USD 1500 levels after
touching highs of USD 3292 in July 2008. The depreciating rupee helped domestic
aluminium producers partially as the prices are dollar denominated.
Globally, Aluminium production declined as the producers tried to cope
with the sharp fall in the aluminium LME to the levels that made existing
operations unsustainable. However, the production cuts failed to match the
decline in demand, and as a result global inventory increased to historical
peaks. At a median price of USD 1600/tonne, over 50% of global smelters are
expected to make cash losses.
The primary aluminium production for the year was around 40 Mn tonnes.
The cost of production of aluminium declined due to fall in input costs
such as alumina and power. Alumina costs declined in line with the aluminium
prices, while for some producers power costs declined on account of sharp fall
in coal prices, however, caustic prices remained high on account of lower
chlorine demand.
Operational Review
Against this backdrop, the Company’s performance was commendable and its
performance was amongst the best in the industry.
The aluminium business operational performance was exceptional and
recorded highest ever production of aluminium metal.
- the first
Indian company to produce over 0.5 Million tonnes aluminium in a year.
In 2009, the global aluminium demand is expected to shrink
by over 10%. CRU expects the demand to decline by over 4 million tonnes. The
Chinese demand is expected to be stagnant after a phenomenal run during last
several years. The
In
Aluminium production is expected to decline in line with fall in demand. With unprecedented demand destruction towards later part of FY2009, the prices of aluminium fell very sharply by over 50% in less than 4 months. As a result, many of the high cost smelters have become unviable. It was estimated that over 50% of global smelters were making cash losses at a price of USD 1500. Several smelters have announced production curtailments since then. The total curtailments announced so far have been close to 17% of 2008 global capacity.
The cost push witnessed by the industry in the last few years has eased considerably with the sharp fall in crude prices from the recent highs. Most input costs such as fuel oil, coal tar pitch have declined sharply along with the freight costs. Globally, third party alumina costs have also come down significantly. The prices are expected to continue to stay depressed over the short term with a large inventory overhang. Aluminium inventories across the globe are near all time highs as supply cuts are still ineffective in the wake of severe demand destruction. However, the long term fundamentals are strong and the surplus is expected to reduce significantly by FY 10 end.
Business Outlook
The Company has demonstrated its mettle in the wake of
severe macroeconomic adversities. The ferocity and the velocity of the turmoil
surprised the industry. But by leveraging its fundamental strengths and through
robust business model, the Company proved its mettle. The Company has adopted a
consistent strategy to achieve global size and scale through the acquisition of
Novelis. This complements its ongoing brownfield and
COPPER BUSINESS
REVIEW
Industry Review
Global refined copper consumption declined from 18 million tonnes in
2007 to 17.7 million tonnes in 2008. The consumption as was the case with most
metals, declined as most of the developed world entered recession. The demand
declined by 9.5% (-1.5% in 2007) in North America and by 5.6% (-3.7% in 2007)
in
The major demand influencer was once again
In FY 09, the domestic copper demand grew at around 14% vis-a-vis 31% in
FY 08. Domestic copper market witnessed strong growth in second half of FY 09,
spurred by sharp decline in LME, lower scrap availability and reduction in
excise duty.
Globally, the situation turned from deficit to surplus as supply
adjustments could not match the severity and speed of demand destruction.
The global copper industry fortunes changed rustically as severe demand
destruction, liquidity crunch and bankruptcy of iconic financial majors led to
a sharp fall in the copper prices. The prices, which were ruling at historical
highs halved within a short span of 6 months.
The mines supply could not keep pace with smelters requirement for
concentrate due to delay in
commissioning of new projects, cost and time over runs etc. In the first
half of CY2008, the demand and prices for copper were strong with concentrate
market remaining in deficit. As the long term contracts are negotiated in the
month of January, the TC/RC contracts went in favour of miners and the LT TCRC
were close to bottom at around 45/4.5. However buoyant by product demand and
attractive prices during first half of FY 09 helped copper smelters offset the
impact of lower TCRC.
The Copper business performed well despite adverse, macroeconomic
environment and lower Tc/Rc.
The Company recorded creditable production performance not with standing
bi-annual shutdowns in both its smelter (75 smelter day).The company however
managed its market mix well to improve overall copper realizations despite
lower volumes.
This was achieved by growing the CC rod’s production, lucrative duty paid rates by 30% and enhancing the value added CC Rod production by 4%. The operations at copper smelter –II continue to be suspended.
|
Production |
Units |
Year ended 31 March 09 |
Year ended 31 March 08 |
|
Copper cathodes |
MT |
297,797 |
323,884 |
|
CC rods |
MT |
145,542 |
139,682 |
Significant improvements were achieved in operating performance.
Copper anode production was lower by 6 % mainly on account of bi-annual shutdown.
However, Continuous cast Rod production was increased by 4% through full use of
their own capacities and judicious outsourcing.
In the month of March, post shutdown, highest ever monthly production
was achieved. Higher mark ups, driven by improved product and market mix – duty
paid sales rose by 30% over FY 08.
Sharp improvement in by-product realization by negotiating attractive
sulphuric prices in spot market, and enhancing fertilizer output by 14%.
Significant value unlocking through sales of waste products like phospho
gypsum, on copper slag and fly ash at better realizations.
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.
Copper Outlook
The global refined copper demand is expected to contract by
around 4% in CY2009. Weak western world consumption, with a slowdown in demand
from emerging economies will keep overall demand depressed. The surplus will
continue over the short term and supply overhang will remain.
The long term Tc/Rc contracts for the year were significantly higher than CY2008 due to depressed demand for refined copper and temporary surplus in concentrate availability at the time of negotiations. However, the Spot Tc/Rc declined to historical lows driven by tight concentrate availability on account of delays in the expected new mine capacities, rising project costs and associated risk / 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 of concentrate and put further pressure on spot TCRCs.
Over the short term, Indian refined copper consumption is expected to decline marginally as real estate and construction sectors growth take a pause.
However, long term fundamentals are strong and the copper consumption is expected to increase with renewed thrust on power sector reforms and urban housing.
The copper consumption in
BUSINESS OUTLOOK
The Company is confident of weathering this storm and continues to make steady progress on the planned growth track. The Company will continue to strive to improve operating efficiencies and reduce conversion costs. The Company’s production flexibility with respect to various value added byproducts will increase the available options for profit and cash flow improvements.
FINANCIAL REVIEW AND
ANALYSIS
Net Sales and
Operating Revenues
Standalone Net Sales and Operating Revenues for the year 2008-09 declined by 5% YOY due to sharp fall in both aluminium as well as copper LME, which declined substantially? To a large extent, this decline was offset by producing higher volumes in aluminium. The depreciating rupee also helped us in containing the fall in Revenues.
Consolidated Revenues increased from Rs. 600130.000 Millions to Rs. 656250.000 Millions, an increase of 10%, primarily on account of weaker rupee vis a vis USD. This includes Novelis’s full year sale as compared to 10.5 months sales last year.
Other Income
Other Income at Rs. 6370.000 Millions was higher by 29.2% over the previous year largely due to higher pre tax treasury yield and dividend from ABML.
issue letter of offer dated 25th November, 2005. The entire unspent amount of Rights Issue proceeds amounting to Rs.16826.300 Millions has been utilized for the purpose of repayment of bridge loan taken for acquisition of Novelis Inc.
The Company had raised Rs. 45450.000 Millions from the
rights issue in October, 2008 of Re. 1 each at a premium of Rs. 95 per equity
share. The objective of the rights issue was to fund part of the repayment of
bridge loan availed by A.V. Minerals (
Utkal
Alumina is an Alumina refinery coming up in Raygada, Orissa. The
project consists of 1.5 million tpa refinery, with a 90 MW Cogen plant and 2
million TPA Bauxite mining facility. The construction of the refinery is
currently in full swing. All the land required for the project has been
acquired. Around 70% of the project cost has already been committed. The mechanical
completion of the plant is expected by January 2011 and the first alumina is
slated for production around July 2011.
The
Mahan Aluminium, Project coming up in Bargwan, MP, will have a smelter capacity
of 359,000 TPA and a captive 900 MW Power Plant (6 x 150 MW). The land
acquisition for the project will be completed in Q2 FY10. All the major
clearances have been obtained. Major orders have been placed for both the
smelter and the power plant. BHEL has been given the order for the Boiler –
Turbine – Generator packages for the Power Plant. Orders for Cranes, Cathode
Blocks, Rectifiers and Substation for the Smelter have also been placed. Nearly
40% of the total project cost has been committed so far. The first metal from
the smelter would roll out by July 2011.
Aditya
Aluminium, is an integrated Aluminium project coming up in Orissa,
with a 1.5 million tpa alumina refinery, 359,000 TPA Aluminium smelter, and 900
MW captive power plant. A large portion of the lan
Jharkhand
Aluminium is an Aluminum smelter coming up in Sonahatu, Jharkhand,
with a capacity of 359,000 TPA. A 900 MW captive power plant will also be a
part of the project. The plant will be located in Sonahatu which is 20
kilometers from Muri and 55 kilometers from
FINANCE
Issue
and utilisation of Right issue proceeds
As mentioned
in the previous report, in Feb-06, the Company has raised Rs. 22230.00 Millions
by way of Right issue and the money was raised in three tranches, Application
money (25%), by way of 1st call (25%) and by way of final call (50%). In the
Annual General Meeting held on 19th September, 2008 the shareholders of the
Company have approved, under Section 61 of the Companies Act, 1956, utilization
of the previous rights issue (of January, 2006) proceeds for the purpose of
repayment of bridge loan of US$ 3.03 billion taken for acquisition of Novelis
Inc. and other general corporate purpose, in addition to the utilization of
issue proceeds as discussed in the rights issue letter of offer dated 25th
November, 2005. Accordingly, the balance amount of Rs. 16826.300 Millions has
been utilised to repay the bridge loan in November, 2008.
As
per the SEBI (Disclosure and Investor Protection) Guidelines, 2000, Audit
Committee of the Company has reviewed the half yearly Monitoring Report for the
period ended 31.12.2008 prepared by the Monitoring Agency i.e IDBI.
Preference
Shares
The
Company has allotted 2032734 Preference Shares of Rs.2/- each to the
Shareholders of Indal as per the Scheme of Amalgamation between the Company and
Indal. The said Preference Shares are entitled to fixed dividend @ 6% per
annum. As per the terms of the issuance of the Preference Shares, these
Preference Shares were due for redemption on 01.04.2009. Accordingly, 2032734
Preference Shareholders has been redeemed and paid Dividend @ 6% on 01.04.2009.
Subsidaries
/ Joint Venture
The
Company has invested a total amount of Rs. 129330.900 Millions as on 31.03.2009
in A V Minerals (Netherlands) B.V. Out of this, Rs. 19114.300 Millions
(equivalent to US$ 450 million) has been invested towards initial equity
contribution in A V Minerals for the purpose of acquisition of Novelis.
Subsequently, as part of repayment of bridge loan of US$ 3.03 billion, a
further sum of Rs. 100879.000 Millions has been remitted as equity in November,
2008. The balance amount of Rs. 9337.600 Millions has been funded as equity
towards payment of interest on initial bridge loan and on subsequent loan
equivalent to US$ 981.80 million.
The
Company has entered into a joint venture agreement with Mahanadi Coalfields
Limited (MCL, a subsidiary company of Coal India Limited) and Neyveli Lignite
Corporation Limited (NLCL) and has formed MNH Shakti Limited for mining of
coal. Both Subject and NLCL hold 15% stake in the company by severally
acquiring 15000 equity shares of Rs 10 each and MCL holds 70% stake in the
company by acquiring 70000 equity shares of Rs 10 each. In absence of any
control or significant influence by the Company, the amount spent for acquiring
shares as stated earlier has been accounted for as investment.
The Company
has entered into a Memorandum of Understanding with Dubai Aluminium Company
Limited (Dubal) and Hydromine, Inc (Hydromine) for development of an Alumina
Project in
The
Central Government has granted an exemption to the Company vide its order NO.
47/365/2009-CLIII dated 30.06.2009 issued under Section 212(8) of the Companies
Act, 1956 from attaching a copy of the Balance Sheet, Profit and Loss Account,
and Report of the Board of Directors and the Report of the Auditors of all the
Subsidiary Companies, which will not be attached with the financial statements
of the Company. These documents can be requested for the any member, investor
of the Company/subsidiary company. Further, in line with the Listing Agreement
and in accordance with the Accounting Standards 21(AS-21) Consolidated
Financial Statements, being prepared by the Company include financial information
of the its subsidiaries. The Annual Accounts of the subsidiary companies and
the related detailed information will be made available to the shareholder
seeking such information at any point of time. The annual accounts of the
Subsidiary Companies will also be kept for inspection by any shareholder in its
registered office and that of the concerned subsidiary companies.
Awards
and Recognitions
Several
accolades have been conferred upon the Company, in recognition of its contribution
in diverse fields. A selective list:
1.
Renukoot Unit was awarded with
“Greentech gold Award 2008” in Metal and Mining Sector for outstanding
achievement in Environment Management” by Greentech Foundation.
2.
Renukoot Unit was awarded the
prestigious Greentech Gold Safety Award - 2009 in Mining Sector for outstanding
achievement in Safety Management.
3.
Bureau of Indian Standard awarded
Renukoot Unit with Rajiv Gandhi National Quality Award-2007, Silver Trophy in
large scale manufacturing industries-metallurgy category on 10th April 2008.
4.
CII has awarded, Renukoot Unit with
prestigious “National Award for Excellence in Water Management - 2008” in “
Beyond the Fence” category.
5.
Renukoot Unit was awarded “Pegasus
CSR Star Award for 2008” by “Reader’s Digest” for exemplary Rural Development
work. Award was received by Mrs. Rajashree Birla, Chairperson, Aditya Birla
Centre for Community Initiatives and Rural Development from Mr. Arun Jaitly,
Member Rajya Sabha on 21st January 2009 at
6.
Subject, Renusagar Power Division won
the prestigious Ramakrishna Bajaj National Quality Award Trophy, 2008 in
service category.
7.
Subject Renusagar Power Division won
the prestigious Golden Peacock National Quality Award 2008 in Service Category.
8.
Hirakud Unit and Renukoot Unit have
been awarded the First Prize and the Second Prize respectively with the
“National Awards for Energy Conservation” instituted by the Ministry of Power,
Government of India for the year 2008.
9.
Hirakud Power Received the first
Prize for Best Practices in Environment, Safety and Health (ESH) for the year
2008 from CII - Eastern Region, Orissa.
10.
Muri Unit received the Greentech
Silver Award - 2008 for Excellence in Environment Management.
11.
Hirakud Smelter was awarded National
Safety Award (Runners Up) for Lowest Average Frequency and accident free year
of performance, 2006 (presented in September 2008) by the Ministry of Labour
and Employment, GOI.
12.
Birla Copper, Dahej was awarded the
Silver Award from Greentech Foundation for remarkable and outstanding
achievement in “Environment Management” in September 2008.
Aluminium
Subject's major products include standard and Speciality grade aluminas and
hydrates, aluminium ingots, billets, wire rods, flat rolled products,
extrusions and foil.
The
integrated facility at Renukoot houses an alumina refinery and an aluminium
smelter, along with facilities for the production of semi-fabricated products,
namely, redraw rods, flat rolled products and extrusions. The plant is backed
by a co-generation potheyr unit and a captive potheyr plant at Renusagar to
ensure the continuous supply of potheyr for smelter and other operations.
A
strong presence across the value chain and synergies bettheyen operations has
given them a dominant share in the value-added products market. As a step
towards expanding the market for value-added products and services, they have
launched various brands in recent years — Everlast roofing sheets, Freshwrapp
kitchen foil and Freshpakk semi-rigid containers
Copper
Birla Copper, Subject’s copper unit, is located at Dahej in
Birla Copper upholds its longstanding reputation for quality copper cathodes
and continuous cast copper rods by assuring its management processes meet the
highest standards. It has acquired certifications such as ISO-9001:2000
(Quality Management Systems), ISO-14001:2004 (Environmental Management System)
and OHSAS-18001:2007 (Occupational Health and Safety Management Systems).
Mines
Subject acquired two Australian copper mines, Nifty and
The
In
2004, a copper concentrator was commissioned to provide concentrate for use at
Subject's operations in Dahej. During FY2008,
Both Nifty and
Their they’ll-crafted growth and integration hinges on the
three cornerstones of cost competitiveness, quality and global reach. They are
also committed to the triple bottom line accountability of economic,
environment and social factors. Care for the community around their operating
units is best exemplified by their deep-rooted social commitment.
TRADE REFERENCE:
- Air Control and Chemical Engineering
Company Limited
- Alba Security Systems Private Limited
- Brassomatic Private Limited
- BVM Compresor Spares Syndicate
- Grip Engineers Private Limited
- Webb India Private Limited
Fixed Assets
- Tangible Assets
- Mining Rights
- Land and Site Development
- Buildings
- Plant and Machinery
- Vehicles and Aircraft
- Railway Sidings
- Furniture St Fittings
- Live Stock
- Road and Drainage
- Leased Plant and Machinery
- Intangible Assets
- Technological Licenses
- Computer Software
UNAUDITED
FINANCIAL RESULTS FOR THE QUARTER ENDED 31.03.2010
(Rs. In. millions)
|
Particulars |
|
Standalone 31.03.2010 |
|
Income |
|
|
|
a) Net Sales / Income from Operations |
|
194080.200 |
|
b) Other Operating Income |
|
1282.600 |
|
Total Operating Income |
|
195362.800 |
|
Expenditure |
|
|
|
(a) (Increase)/decrease in Stock in Trade |
|
(7552.500) |
|
(b) Consumption of Raw Materials |
|
132256.800 |
|
(c) Purchase of traded goods |
|
719.900 |
|
(d) Employees Cost |
|
8777.500 |
|
(e) Depreciation |
|
6672.100 |
|
(f) Other Expenditure |
|
12281.900 |
|
(g) Power and Fuel |
|
19380.000 |
|
Total Expenditure |
|
172535.700 |
|
Profit / (Loss) From Operations before other Income Interest & Exceptional Items |
|
22827.100 |
|
Other Income |
|
2598.500 |
|
Profit/(Loss) before Interest and Exceptional items |
|
25425.600 |
|
Interest |
|
2780.000 |
|
Profit / (Loss) From
Ordinary activities before Tax |
|
22645.600 |
|
Provision for Taxation |
|
|
|
- Current Year |
|
4621.000 |
|
- Adjustment for earlier years (Net) |
|
(1131.700) |
|
Net Profit/(Loss) for the period |
|
19156.300 |
|
Paid Up Equity Share Capital ( Face Value of the share Rs.10/- each ) |
|
1913.700 |
|
Reserves (Excluding Revaluation Reserves) |
|
277156.100 |
|
Public Share
Holding |
|
|
|
Before
Extraordinary Items |
|
|
|
-Basic |
|
10.18 |
|
-Diluted |
|
10.18 |
|
After Extraordinary Items |
|
|
|
-Basic |
|
10.82 |
|
-Diluted |
|
10.81 |
|
Average of Public Share Holding |
|
|
|
- Number of Shares |
|
1134522125 |
|
- Percentage of shareholding |
|
59.29 |
|
Promoters and Promoter group share holding |
|
|
|
a) Pledged / Encumbered |
|
|
|
- Number of Shares |
|
--- |
|
- Percentage of share (as a % of the total shareholding of promoter and promoter group) |
|
--- |
|
- Percentage of shares(as a % of the total share capital of the company) |
|
--- |
|
b) Non-encumbered |
|
|
|
- Number of Shares |
|
613797188 |
|
- Percentage of Share (as a % of the total shareholding of promoter and promoter group) |
|
100.00 |
|
- Percentage of Share (as a % of the total share capital of the company) |
|
32.08 |
SEGMENT-WISE REVENUE, RESULTS AND CAPITAL
EMPLOYED UNDER CLAUSE 41 OF THE LISTING AGREEMENT
(Rs.
in millions)
|
Particulars |
|
|
Standalone 31.03.2010 |
|
Segment Revenue |
|
|
|
|
(a) Aluminium |
|
|
70006.500 |
|
(b) Copper |
|
|
125423.800 |
|
(c) Others |
|
|
0.000 |
|
|
|
|
|
|
Less: Inter Segment Revenue |
|
|
67.500 |
|
Net Sales and Operating Revenues |
|
|
195362.800 |
|
|
|
|
|
|
Segment Results |
|
|
|
|
(a) Aluminium |
|
|
17665.800 |
|
(b) Copper |
|
|
6601.300 |
|
(c) Others |
|
|
0.000 |
|
|
|
|
|
|
Less: Interest |
|
|
2780.000 |
|
|
|
|
|
|
Add: Other unallocated Income net of unallocated Expenses |
|
|
1158.500 |
|
Profit before Tax |
|
|
22645.600 |
|
|
|
|
|
|
Capital Employed |
|
|
|
|
(a) Aluminium |
|
|
105969.000 |
|
(b) Copper |
|
|
54268.400 |
|
(c) Others |
|
|
0.000 |
|
|
|
|
|
|
Unallocated/ Corporate |
|
|
196105.700 |
|
Total Capital Employed |
|
|
356343.100 |
STATEMENT OF
ASSETS AND LIABILITIES
AS AT 31.03.2010
(Rs. In Millions)
|
Particulars |
|
|
Standalone
31.03.2010 |
|
|
A. SOURCES OF FUNDS |
|
|
|
|
|
1. SHAREHOLDERS FUNDS |
|
|
|
|
|
a) Share Capital |
|
|
1913.700 |
|
|
b) Employee Stock Options Outstanding |
|
|
39.900 |
|
|
c) Reserves & Surplus |
|
|
277156.100 |
|
|
NETWORTH |
|
|
279109.700 |
|
|
2. LOAN FUNDS |
|
|
63569.000 |
|
|
3. Minority Interest |
|
|
0.000 |
|
|
DEFERRED TAX LIABILITIES (Net) |
|
|
13664.400 |
|
|
|
|
|
|
|
|
TOTAL |
|
|
356343.100 |
|
|
|
|
|
|
|
|
B. APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
1. FIXED ASSETS [including Capital work-in-progress] |
|
|
114376.100 |
|
|
|
|
|
|
|
|
2. INVESTMENT |
|
|
214808.300 |
|
|
|
|
|
|
|
|
3. CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
|
|
59214.100 |
|
|
Sundry Debtors |
|
|
13118.700 |
|
|
Cash & Bank Balances |
|
|
1402.100 |
|
|
Other Current Assets |
|
|
534.300 |
|
|
Loans & Advances |
|
|
14373.700 |
|
Total
Current Assets |
|
|
88642.900 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Current Liabilities |
|
|
54269.300 |
|
|
Provisions |
|
|
7214.900 |
|
Total
Current Liabilities |
|
|
61484.200 |
|
|
Net Current Assets |
|
|
27158.700 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES (Not Written off or adjusted) |
|
|
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
|
|
356343.100 |
|
Notes:
1. Arising from the announcement of the Institute of Chartered
Accountants of India dated 29.03.2008 on
Accounting for Derivatives, the Company has decided for early adoption
of Accounting Standard (AS) 30 on
Financial Instruments : Recognition and Measurement, in so far as it
relates to derivative accounting, from 01.04.
2009. Accordingly, net loss arising on fair valuation of outstanding
derivatives as on 1 April, 2009 amounting to Rs. 2305.800 millions (net of
deferred tax of Rs. 1187.300 millions) has been adjusted against general
reserve following
transitional provisions. Accounting for all derivatives from 01.04.2009
have been done as prescribed under the AS. As a result, net gain / (loss) of Rs
(2361.200) millions and Rs 1677.500 millions & Rs 2460.900 millions for the
year ended 31.03.2010 have been included under Net Sales, Consumption of Raw
Materials and Other Expenditure,respectively, with consequential impact on
profit for the year ended 310.3.2010. The figures of the current year in
respect of above items are, therefore, not comparable with those of the
previous year.
2. Upon allotment of 213,147,391 equity shares of Re 1 each at a premium
of Rs 129.90 through Qualified
Institutional Placement on 1st December, 2009, paid-up capital of the
Company has increased by Rs 213.100 millions. Total amount spent for various
ongoing projects (including issue related expenses) till 3103.2010 is Rs
3960.000 millions. The balance amount has been invested temporarily in mutual
funds.
3. The Company has formulated a scheme of financial restructuring under
sections 391 to 394 of the Companies Act 1956 ("the Scheme") between
the Company and its equity shareholders approved by the High Court of
judicature of Bombay to deal with various costs associated with its organic and
inorganic growth plan. Pursuant to this, a separate reserve account titled as
Business Reconstruction Reserve ("BRR") has been created during the
previous year by transferring balance standing to the credit of Securities
Premium Account of the Company for adjustment of certain expenses as prescribed
in the Scheme. Accordingly, Rs 86473.700 millions has been transferred to BRR
during the previous year and following expenses have been adjusted against the
same as per the Scheme:
(Rs. In Millions)
|
|
Standalone |
Consolidated |
||
|
|
2009 - 2010 |
2008 - 2009 |
2009 - 2010 |
2008 - 2009 |
|
Opening Balance Add: Transfer
from Securities Premium Account as per the Scheme Less:
Adjustments made: (a). Impairment of
goodwill arising on consolidation of Novelis Inc. while preparing consolidated
accounts of the Group (b). Impairment
of fixed assets (c). Interest
and Finance Charges on loan taken by A V Minerals ( (d). Costs in
connection with exiting business (e). Certain
costs in connection with the Scheme Closing Balance |
85803.900 --- --- --- --- --- --- --- 85803.900 |
--- 86473.700 --- --- 668.000 --- --- 1.800 85803.900 |
40305.000 --- --- --- --- --- 3043.900 --- --- 37261.100 |
--- 86473.700 --- 35973.000 1113.000 5444.700 3636.200 1.800 40305.000 |
4. Adjustment for earlier years
(Net) under Tax Expenses includes write back of provision for tax resulting
from
change in estimation of tax
liability on progress in tax assessments.
WEBSITE DETAILS:
PRESS
RELEASES:
Hindalco announces Q1 FY2010-11 results
|
|
|
Vs. Q1 FY10 |
|
Revenues |
Rs.51780.000 millions |
33% |
|
PBITDA |
Rs.9010.000 millions |
8% |
|
PAT |
Rs.5340.000 millions |
11% |
Strong Q1 with sharp increase in sales, PBIDTA and net income
Financial highlights
|
(Rs. in millions) |
Quarter ended 30.06. 2010 |
Quarter ended 30.06.2009 |
|
Net sales and operating revenues |
51780.000 |
3,8970.000 |
|
Other income |
690.000 |
750.000 |
|
Profit before depreciation, interest and tax |
9010.000 |
8330.000 |
|
Depreciation |
1690.000 |
1650.000 |
|
Interest and finance charges |
590.000 |
680.000 |
|
Profit before tax |
6730.000 |
6000.000 |
|
Provision for taxes |
1390.000 |
1190.000 |
|
Net profit |
5340.000 |
4810.000 |
|
Basic EPS* |
2.79 |
2.83 |
|
*EPS is lower on account of higher equity capital at Rs.1913.7000
millions post QIP vs. Rs.1700.5000 millions in Q1 FY09. |
||
Hindalco Industries Ltd, an Aditya Birla Group company, today announced
its unaudited financial results for the quarter ended June 30, 2010. Its
performance in the quarter has been significantly better than the comparable
quarter in the previous year.
Net sales at Rs.51780.000 crore in Q1 FY11 were up 33% over Q1 FY10,
driven by higher volumes, better product/geographic mix and improved
realisation. Additionally its low cost advantage, arising from integration and
captive coal for own power generation for the Hirakud smelter, cushioned the
adverse impact of spiralling cost escalations of crude and crude derivatives as
well as purchased coal for Renukoot and plummeting copper TcRc
The company also benefitted from higher aluminium LME and better
by-product realisation in its copper business. Other income and interest/
financing charges were constrained by lower returns on investment and lower
average interest rate respectively.
Profit before tax is higher by 12% at Rs.6730.000 crore vis-à-vis
Rs.6000.000 crore in Q1 FY10. Net profit is at
Rs.5340.000 crore as against Rs.481 crore in
Q1 FY10.
Business segment results
Of the total revenues of Rs.51780.000 crore,
aluminium business contributed Rs.18670.000 crore with an EBIT of Rs.5520.000
crore. Aluminium sales were higher on the back of higher volume, better mix,
along with better LME compared to Q1 FY10. These benefits were eroded partly by
the appreciating Rupee and higher energy cost. The increase of 32% in revenue
translated into an EBIT gain of 21% at Rs.5520.000 crore in Q1 FY11 from
Rs.4550.000 crore in Q1 FY10.
In the copper business, revenues were higher at Rs.33140.000 crore up by 34%
from Rs.24790.000 crore in Q1 FY10, mainly on account of higher copper LME.
However, the copper business being a custom smelting operation, with offset
hedging program, was not significantly impacted by the gain or loss on changes
in LME.
Hirakud outage: Operations of the aluminium smelter at Hirakud have been
affected in July 2010 due to continuous bad weather with heavy rains and
lightning. A team of experts have now completed the assessment of the situation
and have formulated an action plan for quick revival of operations as well as
certain remedial actions for the future. In line with the action plan currently
under implementation, electrolytic cells taken out of circuit will be restarted
in a phased manner. This exercise is expected to be completed by end-August
2010. As a consequence of this unforeseen outage, the Hirakud aluminium
production is expected to be lower by around 20,000MT for the current fiscal.
Efforts are being made to contain the impact of the loss by appropriate
management action to optimise profitability across all other business segments
of the company. The company has a comprehensive mega insurance policy which
covers property damage and business interruptions.
Strategic initiatives
Utkal Alumina International Limited [UAIL]: UAIL, which is a 100%
subsidiary of Hindalco, is setting up a 1.5mtpa alumina refinery in Rayagada
district of Orissa. The project will feed the alumina requirements of the Mahan
and
the Aditya smelters presently under
construction.
Hindalco has successfully achieved the financial closure of UAIL with the
signing of a common loan agreement of Rs.49060.000 crore on 28.07.2010. This
constitutes the entire debt requirement of the project. The loan documents were
signed in
The equity requirement for this project has already been tied up. This
project is expandable to 3mtpa at relatively lower incremental capital cost.
This is a significant milestone in Hindalco's strategy to grow its alumina
capacity and play the entire value chain in aluminium.
Operational review
Aluminium
Total alumina and metal production is up by 9% and 3% respectively. Wire rod
production also rose up by 6% in Q1FY11. Downstream production grew by 4% and
9% each in the case of flat rolled products and extrusions respectively,
compared to Q1 FY10.
|
Production (MT) |
Q1 FY11 |
Q1 FY10 |
|
Alumina |
341,419 |
311,917 |
|
Metal |
140,061 |
135,439 |
|
Wire rod |
23,326 |
22,104 |
|
Flat rolled products |
51,373 |
49,304 |
|
Extrusions |
9,617 |
8,812 |
Copper
Quarterly cathode production has been lower due to the planned smelter
shutdown. The value added CCR production is up 38% on the back of increased
capacity.
|
Production (MT) |
Q1 FY11 |
Q1 FY10 |
|
Copper cathodes |
76,309 |
79,782 |
|
CC rods (own production) |
40,708 |
29,461 |
Brownfield
expansion projects
Hirakud smelter expansion: The smelter expansion from 155KTPA to 161KTPA is scheduled
for completion by Q2 FY11. Smelter expansion from 161 to 213KTPA along with
100MW power plant expansions will be completed in Q4 FY12. Site activities like
boundary wall and area grading are progressing well. BTG order has been placed
and other major orders are to be finalised in the next quarter.
Further to the above, the smelting capacity at Hirakud is intended to be
expanded from the proposed 213KTPA to 360KTPA with a corresponding increase in
back-up captive power from the proposed 467.5MW to 967.5MW.
Hirakud flat rolled products project: This project is underway for the
transfer of all key equipment from the Novelis Plant at
have been placed. A strong project team is
in place.
plant and a railway siding facility are also
being evaluated.
Utkal Alumina Project (UAIL): The construction of 1.5 Mio tpa alumina
refinery along with a 90MW captive co-gen plant is in full swing. The output
from UAIL would be sufficient to feed alumina to the Mahan and the Aditya
smelters. Engineering for refinery and captive co-gen plant is nearing
completion. Contractors are working at the site for civil and structural work
and have mobilised more than 5,000 people. Piling, fabrication, concreting and
tank erection are all well underway. Major equipment like boilers, evaporators
and turbines have started arriving
at the site and erection and structural work
for the various equipment is in progress.
Orders for all the long delivery equipment have
been placed. Around 82% of the project cost has already been committed. The
production of alumina is expected to start around Q2 FY12.
Mahan aluminium project: A 359KTPA aluminium smelter capacity along with a
900MW captive power plant is coming up in Bargwan, Madhya Pradesh.
Major approvals are in place and site activities are on schedule. Around 10,000
people are working at the site. Site grading work, boundary wall and piling are
nearing completion. Concreting and structural work is progressing in line with
the first pot start up schedule. Work on boiler foundation, ESP, powerhouse
units and chimney rafts is progressing in full swing. Erection of engineering
structure for boilers is in progress. Major equipment has started arriving at
the site. Around 82% of the total project cost has been committed. The first
metal from the smelter is expected by Q2 FY12.
Aditya aluminium project: A 359KTPA aluminium smelter along with a 900MW
captive power plant is coming up in Orissa.
Major approvals are in place. Major orders have been placed for both the
smelter and the power plant. Around 59% of the total project cost for the
smelter and power plant has been committed. Site activities like area grading,
boundary wall are in progress. The first metal from the smelter is expected by
Q3 FY12
Aditya refinery project: A 1.5 Mio TPA alumina refinery along with a
90MW co-gen plant is coming up in Orissa. This is a replica of the Utkal
alumina refinery. The refinery would be mechanically complete by Q1 FY14.
Jharkhand aluminium project: A 359KTPA aluminium smelter along with a
900MW captive power plant is coming
up in Sonahatu, Jharkhand. This is a replica
of the Aditya / Mahan smelter.
The land acquisition process has already started. Activities for getting
environmental clearance have started and a presentation has been made to the
MOEF expert committee. The Tubed coal mine has been allotted jointly with Tata
Power. The first metal from the smelter is expected by Q1 FY14.
Industry outlook
Aluminium
Global aluminium demand in Q1 FY11 reflected good growth of 24% over Q1 FY10. A
strong growth in
A strong demand enabled LME to reach USD2,400/t levels in April but due
to European fears, the quarter ended at USD1,900 levels. Going forward, LME is
likely to be supported by the cost pressures, especially in
Indian industry had a nominal growth of 8% on Y-o-Y basis. Major growth
areas were the electrical sector and castings for the auto Industry. The global
demand is expected to continue to be good in Q2, though the base-effect will
start to get diluted.
Copper
Global copper consumption continued to improve in the last quarter. The
world refined copper market balance was in a small deficit in the first four
months of 2010 after recording large surpluses in the previous two years.
Exchange stocks at end-June 2010 were at 646,000tonne recording a drop of
107,000tonne over the quarter. Despite this, copper prices at the LME exhibited
weakness on account of increased risk aversion.
World copper consumption is likely to continue to grow in the coming
quarters on improving demand from emerging countries. The outlook for refined
copper consumption in
Strong concentrates demand from
Company
outlook
Aggressive and innovative approaches for low cost brownfield expansions,
sweating of existing assets, continuous cost reduction and optimising working
capital continue to yield results despite inflationary conditions. The outlook
for the coming quarters will be impacted by a subdued financial market
sentiment, uncertain commodity and financial markets and lower production at
Hirakud. The company is determined to tide over these
negatives because of its strong fundamentals
and committed resources.
The progress in the
Statements in this "Press Release" describing
the company's objectives, projections, estimates, expectations or predictions
may be "forward looking statements" within the meaning of applicable
securities laws and regulations. Actual results could differ materially from
those expressed or implied. Important factors that could make a difference to
the company's operations include global and Indian demand supply conditions,
finished goods prices, feed stock availability and prices, cyclical demand and
pricing in the company's principal markets, changes in Government regulations,
tax regimes, economic developments within India and the countries within which
the company conducts business and other factors such as litigation and labour
negotiations. The company assume no responsibility to publicly amend, modify or
revise any forward looking statement, on the basis of any subsequent
development, information or events, or otherwise.
At Subject, we value quality, safety, and environmental
consciousness and implement the same in all our projects.
Site work on all the
Corporate Projects and Procurement Cell,
Mumbai
The Corporate
Projects and Procurement Cell is the central and nodal cell for the evaluation,
monitoring, control and implementation of all
Head: Mr. R. Ram
Madhya Pradesh: Mahan Aluminium
Project
The Mahan Aluminium Project is a
smelter-power plant complex that boasts of a 359-ktpa aluminum smelter and a
900-MW
captive thermal power plant.
The project has
access to the Mahan coal block (off the main basin in the Singrauli coal
fields) through a joint venture with Essar Power. Subject’s share in the coal
block is about 3.6 million mtpa.
Site work has already started and is in full swing. Engineering and ordering of
packages for both smelter and power plant are moving ahead of schedule. All the
major approvals are in place and site activities are progressing well. Major
contractors have mobilised at site. A major chunk of land is already acquired.
The first metal from the
smelter is proposed to be produced by Q2 FY12.
Project head, smelter: Mr. Apurba Musib
Project head, power plant: Mr. D. Bangabash
Orissa: Aditya Alumina and Aluminium
Project
Aditya Alumina and
Aluminium Project is a
The project also has a 20 million-tpa joint venture coal mine at Ib
Valley, coal blocks Talabira II and III, Orissa,
and a 900-MW captive power plant at Lapanga.
A major portion of the total land required for the project has been acquired.
Most of the important clearances have been obtained, and major orders have been
placed for the smelter and power plant.
The first metal from the smelter is proposed to be produced by Q3 FY12. The
refinery is proposed to be mechanically completed by Q1 FY14.
Project head: Mr. S. Bontha
Orissa: Utkal Alumina Project
The Utkal Alumina Project (Utkal Alumina) is
a
Construction of 1.5 million-tpa alumina refinery at Rayagada, Orissa is in full
swing. Over 85 per cent of the project cost has already been committed. Land
and all statutory clearances required for the project have been obtained.
Engineering for the project is nearing completion.
Site work is going on in full swing with large contractors like L &
T , Gannon Dunkerley and others, and major equipment like boilers, evaporators,
turbines have started arriving at site. All the major orders have been placed.
The first alumina is expected to be produced
around Q2 FY12.
Project head: Mr. Surya Kant Mishra
Jharkhand: Jharkhand Aluminium Project
Located at Sonahatu, fifty-five kilometers from
In a joint venture, with Tata Power, we own a Coal Mine (Tubed) in the Auranga
coal fields at Jharkhand. The coal mine has a capacity of 6 million tpa.
Land acquisition process has already commenced. Activities for getting
the environmental clearance have also started. Water allocation clearance for
55 mcm of water from the Subarnarekha basin has been obtained. Technology
agreement with Pechiney has also been inked for the aluminium smelter.
The first metal from the smelter is proposed to be produced by Q1 FY14.
Renukoot plant was commissioned in 1962, with one potline and a smelter of 20,000 tpa capacity. Over the years the plant has increased its capacity through various brownfield expansions and asset sweating measures.
Today Subject, at Renukoot, operates across the aluminium value chain from bauxite mining, alumina refining, aluminium smelting to downstream rolling and extrusions. The integrated facility houses a 700,000 tpa alumina refinery and a 345,000 tpa aluminium smelter along with facilities for production of semi-fabricated products
namely conductor redraw
rods, sheet and extrusions.
In 1967 Subject established a captive power plant at Renusagar, the first
captive power plant (CPP) for aluminium industry in
Renukoot has earned the Integrated Management System (IMS) certification
combining quality, environment and occupational health and safety into one
business excellence model.
The sprawling 1056 acre Renukoot complex located near the Rihand Dam, 160 kms
from the city of Varanasi, includes beautifully landscaped gardens with
residential colony cum mini township for management and staff members, a
full-fledged hospital for employees and the community around along with
schools, clubhouses, banks sports, cultural facilities, supermarkets and the
Renukeshwar Mahadev Temple.
As a responsible corporate citizen Subject Renukoot’s
Community Development Cell plays a leading and exemplary role in social
projects on health care, women’s empowerment, education, sustainable livelihood
schemes and espouse social causes such as widow re-marriage and dowry-less
marriages.
Subject Renukoot's CSR cell has taken up various innovative rural development
projects in 385 neighbouring villages around its operating sites in the states
of Uttar Pradesh, Jharkhand and Chhattisgarh. These social projects are carried
out under the aegis of
A dedicated and highly enthused team of around 1285 managers
at Renukoot and Renusagar are engaged in challenging and enriching jobs. The
unit has been a recipient of several national and international awards in
quality, environment management, energy conservation, CSR, among others.
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No records exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals have
been formally charged or convicted by a competent governmental authority for
any financial crime or under any formal investigation by a competent government
authority for any violation of anti-corruption laws or international anti-money
laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.46.80 |
|
|
1 |
Rs.72.08 |
|
Euro |
1 |
Rs.60.37 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
8 |
|
OPERATING SCALE |
1~10 |
8 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
9 |
|
--PROFITABILIRY |
1~10 |
9 |
|
--LIQUIDITY |
1~10 |
9 |
|
--LEVERAGE |
1~10 |
8 |
|
--RESERVES |
1~10 |
9 |
|
--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 |
|
75 |
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 |
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 |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.