MIRA
INFORM REPORT
|
Report Date : |
23.04.2011 |
IDENTIFICATION DETAILS
|
Name : |
VISA STEEL LIMITED |
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Registered
Office : |
11 Ekamra Kanan, Nayapalli, |
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Country : |
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Financials (as
on) : |
31.03.2010 |
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Date of
Incorporation : |
10.09.1996 |
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Com. Reg. No.: |
15-004601 |
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CIN No.: [Company Identification
No.] |
L511090R1996PLC004601 |
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TAN No.: [Tax Deduction &
Collection Account No.] |
BBNV00159F |
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PAN No.: [Permanent Account No.] |
AAACV9836E |
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Legal Form : |
A Public Limited Liability Company. The company’s shares are listed on
stock exchange. |
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Line of Business
: |
Manufacturer of Iron and Steel. |
RATING & COMMENTS
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MIRA’s Rating : |
Ba (45) |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Maximum Credit Limit : |
USD 12000000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Usually Correct |
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Litigation : |
Clear |
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Comments : |
Subject is an established company having satisfactory track. Trade relations
are reported as fair. Business is active. Payments are reported to be usually
correct 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
|
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 : |
11 Ekamra Kanan, Nayapalli, |
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Tel. No.: |
91-674-2552479/ 84 |
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Fax No.: |
91-674-2554661/ 62 |
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E-Mail : |
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Website : |
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Corporate Office : |
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Tel. No.: |
91-33-30519000 |
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Fax No.: |
91-33-30519001/ 2 |
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Factory 1 : |
Kalinganagar Industrial Complex, P.O. Jakhapura, District Jaipur,
Orissa-755019, |
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Tel. No.: |
91-6726-242441/ 444 |
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Fax No.: |
91-6726-242442 |
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Factory 2 : |
Village Golagaon, Near Duburi, P.O. Pankapal, District Jaipur, |
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Tel. No.: |
91-6726-245470 |
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Fax No.: |
91-6726-245561 |
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Factory 3 : |
8, Gajanandpuram, |
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Tel. No.: |
91-7762-228290/ 91 |
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Branches : |
Located at: ·
·
Mumbai ·
·
·
Pradip ·
Vizag ·
Chennai |
DIRECTORS
As on 31.03.2010
|
Name : |
Mr. Vishambhar Saran |
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Designation : |
Chairman and Managing Director |
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Name : |
Mr. Maya Shankar Verma |
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Designation : |
Independent Director |
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Name : |
Mr. Arvind Pande |
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Designation : |
Independent Director |
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Name : |
Mr. Shiv Dayal Kapoor |
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Designation : |
Independent Director |
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Name : |
Mr. Debi Prasad Bagchi |
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Designation : |
Independent Director |
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Name : |
Mr. Pradip Kumar Khaitan |
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Designation : |
Independent Director |
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Name : |
Mr. Shanti Narain |
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Designation : |
Independent Director |
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Name : |
Mrs. Saroj Agarwal |
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Designation : |
Non- Executive Director |
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Name : |
Mr. Vikas Agarwal |
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Designation : |
Non- Executive Director |
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Name : |
Mr. Vivek Agarwal |
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Designation : |
Non- Executive Director |
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Name : |
Mr. Vishal Agarwal |
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Designation : |
Managing Director |
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Name : |
Mr. Basudeo Prasad Modi |
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Designation : |
Deputy Managing Director |
KEY EXECUTIVES
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Name : |
Mr. Manoj Kumar Digga |
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Designation : |
Chief Financial Officer |
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Name : |
Mrs. Subhra Giri |
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Designation : |
Company Secretary |
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Name : |
Mr. P R Bose |
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Designation : |
President (Operations) |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 31.03.2011
|
Category of
Shareholder |
Total No. of
Shares |
% of total No.
of Shares |
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(A) Shareholding of Promoter and Promoter Group |
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255,600 |
0.23 |
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81,144,400 |
73.77 |
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81,400,000 |
74.00 |
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Total shareholding of Promoter and Promoter Group (A) |
81,400,000 |
74.00 |
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(B) Public Shareholding |
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40,681 |
0.04 |
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4,998,087 |
4.54 |
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5,038,768 |
4.58 |
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6,747,698 |
6.13 |
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10,527,669 |
9.57 |
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5,369,930 |
4.88 |
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915,935 |
0.83 |
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672,627 |
0.61 |
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243,308 |
0.22 |
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23,561,232 |
21.42 |
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Total Public shareholding (B) |
28,600,000 |
26.00 |
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Total (A)+(B) |
110,000,000 |
100.00 |
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(C) Shares held by Custodians and against which Depository Receipts
have been issued |
- |
- |
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- |
- |
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- |
- |
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- |
- |
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Total (A)+(B)+(C) |
110,000,000 |
100.00 |
(1) Indian
Individuals / Hindu Undivided Family
Individual shareholders holding nominal
share capital up to Rs. 0.100 millionBUSINESS DETAILS
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Line of Business : |
Manufacturer of Iron and Steel. |
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Products : |
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PRODUCTION STATUS
As on 31.03.2010
|
Particulars |
Installed
Capacity |
Actual
Production |
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Pig Iron |
225000 |
135540 |
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Chrome concentrate |
100000 |
2412 |
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Chrome Powder |
100000 |
-- |
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Coke |
400000 |
327154 |
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Ferro Chrome |
50000 |
45771 |
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Sponge Iron |
300000 |
139299 |
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Power at Captive Power Plant (MKWH) |
438 |
223 |
GENERAL INFORMATION
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Bankers : |
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Facilities : |
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Banking Relations
: |
-- |
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Auditors : |
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Name : |
Lovelock and Lewes Chartered Accountant |
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Internal Auditors : |
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Name : |
L B Jha and Company Chartered Accountant |
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Fellow Subsidiaries: |
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Subsidiaries : |
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Holding Company : |
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Joint Ventures : |
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CAPITAL STRUCTURE
As on 31.03.2010
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
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160000000 |
Equity Shares |
Rs. 10/- each |
Rs. 1600.000 Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
110000000 |
Equity Shares |
Rs. 10/-
each |
Rs. 1100.000
Millions |
Note:
(a) Of the above 56,212,167 Equity Shares of Rs. 10/- each are held by
VISA Minmetal AG, the Holding Company
[Refer Note 4 Schedule 16]
(b) Of the above 8,360,000 Equity Shares of Rs. 10/- each allotted for
consideration other than cash pursuant to a scheme of amalgamation without
payment being received in cash.
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
1100.000 |
1100.000 |
1100.000 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
2046.930 |
1701.460 |
2369.600 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
3146.930 |
2801.460 |
3469.600 |
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LOAN FUNDS |
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1] Secured Loans |
11076.990 |
8891.690 |
6987.730 |
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2] Unsecured Loans |
350.390 |
38.020 |
0.000 |
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TOTAL BORROWING |
11427.380 |
8929.710 |
6987.730 |
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DEFERRED TAX LIABILITIES |
301.100 |
14.480 |
349.190 |
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TOTAL |
14875.410 |
11745.650 |
10806.520 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
8136.290 |
7781.230 |
3913.270 |
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Capital work-in-progress |
7700.700 |
5410.430 |
6045.760 |
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INVESTMENT |
600.400 |
304.650 |
8.900 |
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DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
3417.070
|
3565.080 |
2788.390 |
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Sundry Debtors |
648.780
|
823.730 |
963.400 |
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Cash & Bank Balances |
833.410
|
704.550 |
856.970 |
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Other Current Assets |
18.150
|
18.530 |
19.460 |
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Loans & Advances |
1415.770
|
1240.070 |
975.240 |
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Total
Current Assets |
6333.180
|
6351.960 |
5603.460 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
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Sundry Creditors |
6964.050
|
7871.390 |
4478.550 |
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Other Current Liabilities |
816.190
|
275.230 |
230.480 |
|
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Provisions |
139.470
|
7.320 |
133.940 |
|
Total
Current Liabilities |
7919.710
|
8153.940 |
4842.970 |
|
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Net Current Assets |
[1586.530]
|
[1801.980] |
760.490 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
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Share issue expenses |
24.550 |
51.320 |
78.100 |
|
|
|
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|
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TOTAL |
14875.410 |
11745.650 |
10806.520 |
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PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
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|
SALES |
|
|
|
|
|
|
|
Income |
11569.420 |
10350.060 |
6807.650 |
|
|
|
Other Income |
145.410 |
54.540 |
20.400 |
|
|
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TOTAL (A) |
11714.830 |
10404.600 |
6828.050 |
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|
|
|
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Less |
EXPENSES |
|
|
|
|
|
|
|
Material |
8136.600 |
8102.370 |
4846.950 |
|
|
|
Expenses |
1601.870 |
1486.760 |
1041.820 |
|
|
|
Loss on exchange Fluctuation |
0.000 |
1184.670 |
0.000 |
|
|
|
TOTAL (B) |
9738.470 |
10773.800 |
5888.770 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
1976.360 |
[369.200] |
939.280 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
651.400 |
321.540 |
85.340 |
|
|
|
|
|
|
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|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
1324.960 |
[690.740] |
853.940 |
|
|
|
|
|
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|
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|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
468.180 |
307.910 |
182.590 |
|
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|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
856.780 |
[998.650] |
671.350 |
|
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|
|
|
|
|
|
|
Less |
TAX (H) |
382.620 |
[330.510] |
239.870 |
|
|
|
|
|
|
|
|
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|
PROFIT AFTER TAX
(G-H) (I) |
474.160 |
[668.140] |
431.480 |
|
|
|
|
|
|
|
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|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
[35.370] |
632.770 |
329.980 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Proposed Dividend |
110.000 |
0.000 |
110.000 |
|
|
|
Income Tax on Proposed Dividend |
18.690 |
0.000 |
18.690 |
|
|
BALANCE CARRIED
TO THE B/S |
310.100 |
[35.370] |
632.770 |
|
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|
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EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export Earnings |
1952.940 |
2395.820 |
NA |
|
|
TOTAL EARNINGS |
1952.940 |
2395.820 |
NA |
|
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|
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|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
2762.860 |
6690.300 |
NA |
|
|
|
Finished Goods |
816.000 |
190.630 |
NA |
|
|
|
Capital Goods |
38.080 |
16.080 |
NA |
|
|
TOTAL IMPORTS |
3616.940 |
6897.010 |
NA |
|
|
|
|
|
|
|
|
|
|
Basic/ Diluted
Earnings Per Share (Rs.) |
4.31 |
[6.07] |
3.92 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2010 1st
Quarter |
30.09.2010 2nd
Quarter |
31.12.2010 3rd
Quarter |
|
Net Sales |
2221.720 |
3299.700 |
3469.350 |
|
Total Expenditure |
1816.240 |
2866.710 |
3002.290 |
|
PBIDT (Excl OI) |
405.480 |
432.990 |
467.060 |
|
Other Income |
0.000 |
0.000 |
0.000 |
|
Operating Profit |
405.480 |
432.990 |
467.060 |
|
Interest |
169.190 |
161.170 |
192.400 |
|
Exceptional Items |
0.000 |
0.000 |
0.000 |
|
PBDT |
236.290 |
271.820 |
274.660 |
|
Depreciation |
120.170 |
120.830 |
121.260 |
|
Profit Before Tax |
116.120 |
150.990 |
153.400 |
|
Tax |
39.870 |
47.910 |
50.200 |
|
Provisions and contingencies |
0.000 |
0.000 |
0.000 |
|
Profit After Tax |
76.250 |
103.080 |
103.200 |
|
Extraordinary Items |
0.000 |
0.000 |
0.000 |
|
Prior Period Expenses |
0.000 |
00.000 |
0.000 |
|
Other Adjustments |
0.000 |
0.000 |
0.000 |
|
Net Profit |
76.250 |
103.080 |
103.200 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
PAT / Total Income |
(%) |
4.05
|
[6.42] |
6.32 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
7.41
|
[9.65] |
9.86 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
5.92
|
[7.07] |
7.05 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.27
|
[0.36] |
0.19 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
6.15
|
6.10 |
3.41 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
0.80
|
0.78 |
1.16 |
LOCAL AGENCY FURTHER INFORMATION
OPERATIONS
The Company is engaged in the business of manufacturing Iron and Steel
products such as Pig Iron, Coke, Ferro Chrome and Sponge Iron. During the year,
the increase in production volumes across all Units has enabled the Company to
register a robust growth in sales revenue inspite of lower sales realisation of
the various products. The lower cost of raw materials such as Coking Coal, Iron
Ore and Chrome Ore and better operating efficiencies have resulted in better
operating margins. They continue to drive the low cost competitiveness due to
the strategic location, efficient raw material procurement and captive power
generation.
The outlook for the Iron and Steel Industry in
The Sponge Iron Plant produced 139,299 MT of Sponge Iron during 2009-10
as against 28,370 MT of Sponge Iron during 2008-09. The power generated during
the year was 223 million units as against 39 million units in the previous
year, an increase of over 472% and was used mainly for captive consumption.
The Company has registered a revenue growth of over 13% amounting to
Rs.11,714.83 million in FY’ 2009-10 compared to Rs.10,404.60 million during the
FY’ 2008-09. The operating margins increased by 142% at Rs.1,976.36 million in
FY’ 2009- 10 as against Rs.815.47 million in the previous year. The PBT was
Rs.856.78 million for FY’ 2009-10 as against loss of Rs.998.65 million and PAT
was Rs.474.16 million as against loss of Rs.668.14 million for the
corresponding period. The Company is in the final stages of completing project
work on the 0.5 million TPA Steel Melt Shop, 0.5 million TPA Bar and Wire Rod
Mill and 3rd 25 MW Power Plant and expects to commence production by December
2010. This will further boost the Company’s growth in revenues and margins.
The Company has started preparatory work for expanding the existing
facility at Kalinganagar in Orissa from 0.5 million TPA to 1 million TPA Steel
Plant and Power Plant from 75 MW to 375 MW and set up greenfield facility of 1
million TPA Steel Plant and 300 MW Power Plant at Raigarh in Chhattisgarh. The
plan is to raise the total Steel production of the Company to 2 million TPA and
power generation to 675 MW over the next few years and provide the foundation
to maintain high quality growth and enhance value creation for its
shareholders.
The Company’s subsidiary – VISA BAO Limited, has initiated steps for
implementation of a 100,000 TPA Ferro Chrome Plant at Kalinganagar in Orissa.
A detailed analysis of the Company’s operations, segmentwise
performance, project review, risk management, strategic initiatives and
financial review and analysis, as stipulated under Clause 49 of the Listing
Agreement with the Stock Exchanges is presented under a separate section titled
“Management Discussion and Analysis Report” forming part of the Annual Report.
SUBSIDIARIES
The Company has two subsidiaries namely, VISA BAO Limited and Ghotaringa
Minerals Limited:
(i) VISA BAO Limited (VBL) is a Joint Venture between the Company and
Baosteel Resources Company Limited,
(ii) Ghotaringa Minerals Limited (GML) has been incorporated to give
effect to the joint venture agreement between the Company and Orissa Industries
Limited (ORIND) for carrying out the business of mining of chrome ore and/or
other minerals. GML is currently carrying out drilling and prospecting work
over an area allotted to ORIND in Dhenkanal, Orissa.
The Company’s investment in GML will enable the Company to directly
procure chrome ore, mined by GML, for its Chrome Ore Beneficiation Plant,
Chrome Ore Grinding Plant and the Ferro Chrome Plant which shall reduce raw
material costs significantly.
The audited accounts of VBL and GML for the year ended 31 March 2010 are
attached as required under Section
212 of the Companies Act, 1956.
MANAGEMENT
DISCUSSION AND ANALYSIS
Overview
The financial year 2009-10 was an important year for the Company where
they have shown robust recovery and emerge as a stronger Company to deliver
enhanced shareholder value over the coming years. The Company registered a
healthy performance during 2009-10 with a 13% growth in revenues to
Rs.11,714.83 million, 142% growth in EBIDTA to Rs.1,976.36 million, 186%
increase in PBT to Rs.856.78 million and 171% rise in PAT to Rs.474.16 million.
INDUSTRY STRUCTU
RE AND DEVELOPMENTS
Steel Industry
Overview
The global economy has witnessed a sharp recovery largely driven by the
large stimulus packages announced by various countries which has created
liquidity and stimulated demand, leading to the speedy recovery of the world
GDP growth. The Chinese and Indian economies have been the fastest economies to
recover.
The steel industry has also seen a strong recovery in demand and
increase in production volumes especially in
The Indian economy grew at 7.2% in 2009-10 against 6.7% last year which
shows a remarkable turnaround. The economy is likely to grow at approx. 8 to
10% over the next decade driven by the infrastructure (power, road, railways,
ports etc.) and consumption (automobile, real estate etc.) sectors which will
result in robust growth in demand for various iron and steel products.
The States of Orissa, Chhattisgarh and Jharkhand which account for
majority of the iron ore and coal reserves in the country will remain the most
attractive locations for setting up iron and steel manufacturing capacity.
Company Overview
The Company’s current saleable products include Iron and Steel products
such as Pig Iron, Coke, Ferro Chrome and Sponge Iron. Going forward, the
Company will consume the Pig Iron and Sponge Iron captively in manufacturing of
Steel. The Company has made notable progress on the setting up of the 0.5
million TPA Steel Melt Shop and 0.5 million TPA Bar and Wire Rod Mill and
additional 25 MW Power Plant. The said facilities, once commenced, would bring
in strong growth in revenues and margins for the Company.
BUSINESS REVIEW
The current business of the Company comprises of manufacturing of Iron
and Steel products such as Pig Iron,
Coke, Ferro Chrome and Sponge Iron. The manufacturing facilities of the
Company are situated at Kalinganagar which includes Blast Furnace, Coke Oven,
Ferro Chrome, Sponge Iron and Power and at Golagoan in Orissa
where the Chrome Ore Beneficiation and Chrome Ore Grinding Plants are
located.
Iron and Steel
Products
(a) Pig Iron
The Blast Furnace with a total capacity of 225,000 TPA is currently
producing Hot Metal which is poured into moulds to produce Pig Iron. Basic
grade Pig Iron is sold to various Steel plants in eastern
The total hot metal production during 2009-10 was 150,424 MT as compared
to 85,457 MT of hot metal in 2008-09 thereby registering a growth of 76%.
The main raw materials for the Blast Furnace are
Pig iron sales contributed to 21% of the total sales of the Company
during the year, amounting to
Rs.2,562.29 million.
(b) Coke
The Coke Oven Plant, with a total capacity of 400,000 TPA, operates on
the stamp-charging heat recovery technology which allows blending of semi-soft
and semi-hard Coking Coals with prime hard Coking Coals to produce Low Ash
Metallurgical Coke.
The total coke production during 2009-10 was 353,601 MT compared to
331,128 MT in 2008-09 thereby registering a growth of 7%. Coking coal, the
primary raw material for producing coke, was imported from
(c) Ferro Chrome
The Ferro Chrome Plant, with a total capacity of 50,000 TPA produced
47,649 MT of Ferro Chrome in 2009- 10 compared to 24,815 MT in 2008-09 showing
a substantial improvement in production of 92% over previous year. The Ferro
Chrome sales contributed 21% of total sales during the year amounting to
Rs.2,517.48 million.
(d) Sponge Iron
The Sponge Iron Plant having total capacity of 300,000 TPA produced
139,299 MT of Sponge Iron during 2009-
10 as against 28,370 MT during 2008-09 when only 50% of its capacity was
in operation. Being fully operational
now, it contributed 14% of the total sales amounting to Rs.1,731.08
million.
The main raw materials for Sponge Iron Plant are
OMC, Patnaik Minerals and Rungta Mines, the Coal is procured mainly from
Mahanadi Coalfields Limited besides using Imported Coal.
(e) Power
The Power Plants produced 223 MKWH of power during the year 2009-10 as
against 39 MKWH produced during 2008-09 showing a growth of 472%. The Power
produced was mainly used captively.
PROJECT OVERVIEW
The following
projects are under execution:
Steel Melt Shop – a 70 ton Electric Arc Furnaces (EAF) with LRF, VD and
a Continuous Casting Machine with a Billet/ Bloom Caster to manufacture 0.5
million TPA of Special Steel. Rolling Mill – a 0.5 million TPA Bar and Wire Rod
Mill supplied by SMS
Power Plant – an additional 25 MW Power generation with CFBC Boiler.
Associated infrastructure facilities – water pipelines, roads, drainage,
railway siding, stockyards, buildings and colony etc.
STRATEGIC
INITIATIVES
Joint Venture with
Baosteel
VISA BAO Limited, a subsidiary of the Company is in the process of
setting up a 100,000 TPA Ferro Chrome Plant at Kalinganagar Industrial Complex.
Project expansion
The Company has started preparatory work for expanding the existing
facility at Kalinganagar in Orissa from 0.5 million TPA to 1 million TPA Steel
Plant and Captive Power Plant from 75 MW to 375 MW and set up greenfield
facility of 1 million TPA Steel Plant and 300 MW Captive Power Plant at Raigarh
in Chhattisgarh. The plan is to raise the total Steel production of the Company
to 2 million TPA and power generation to 675 MW over the next few years and
provide the foundation to maintain high quality growth and enhance value
creation for its shareholders.
The Company has also taken necessary steps for securing its raw material
requirements and integrating backwards into mining of
OPPORTUNITIES AND
THREATS
The Company is poised to seize the opportunities in the Iron and Steel
Industry (both for steel and intermediary saleable products) through its
strengths of locational and logistical advantages, raw material linkages,
technology edge and management expertise. These opportunities will be linked
directly to the growing demand from the automobile and auto components,
infrastructure, construction and power sectors. The Company’s strategic
location in Kalinganagar offer scope for seamless value addition in its
manufacturing process from hot metal to stainless steel. The Company is also
well positioned in its conscious adherence to a modular project implementation,
thereby enabling ploughing of internal accruals in future projects, thereby
reducing costs related to financing.
The threats for the Company would come from adverse fluctuations in
input and capital costs, foreign exchange
variations and taxes and duties. The buoyancy in the Iron and Steel
Sector has attracted many players, resulting in reduced availability of skilled
manpower and contractor workforce. Delay in implementation of project may lead
to opportunity loss in revenue generation and rise in costs.
INTERNAL CONTROL
AND SYSTEMS
The internal control systems in the Company commensurates with the size
and nature of its operations and periodic audits are conducted in various
disciplines to ensure adherence to the same. During the year, M/s. L. B. Jha
and Company, Internal Auditors of the Company had independently evaluated the
adequacy and efficacy of the audit controls. The direct reporting of the
Internal Auditors to the Audit Committee of the Board ensures independence of
the audit and compliance functions. The Internal Auditors regularly report to
the Audit Committee on their observations on the Company’s processes, systems
and procedures ascertained during the course of their audit. Concerted efforts
towards stabilisation of SAP have also contributed to tightening of control systems.
The Company has been able to adapt adequately to this ERP package and is placed
to derive significant benefits from the same. Emphasis is placed on adequacy,
reliability and accuracy of dissemination of financial data and information.
Compliance issues are given utmost importance and reported regularly to the
Board. The Company has been accredited with the ISO 9001-2008 certification. It
shows commitment to quality, customers, and a willingness to work towards
improving efficiency.
OUTLOOK
Fixed Assets:
·
·
·
Building
·
Plant and Machinery
·
Furniture and Fixtures
·
Vehicles
·
Computer Software
AS PER WEBSITE
Profile:
Subject is a part of the Rs 50000.0000 Millions (USD 1 Billion) VISA
Group, founded in 1994 by Mr. Vishambhar Saran and Mrs. Saroj Agarwal. The VISA
Group is a minerals, metals and energy conglomerate with business interests in Steel,
Power, Mining, International Trading, Shipping and Logistics and a strong
global presence in countries including
VISA Steel with a sales turnover of over Rs. 10000.000 Millions is a leading
player in the Indian Steel industry and has its Registered office in
The Company is setting up an integrated 2.5 million TPA Special and
Stainless Steel Plant at Kalinganagar Industrial Complex, Orissa with a total
investment of Rs. 95000.000 Millions. The first phase includes a 1 million TPA
Special and Stainless Long Product Plant with 375 MW Captive Power Plant with
an investment of Rs. 35000.000 Millions. The facilities include a Pig Iron
Plant, Coke Oven Plant, Ferro Chrome Plant, Sponge Iron Plant, Power Plant,
Steel Melt Shop, Rolling Mill etc.
The Company plans to integrate backwards to the mining of iron ore,
chrome ore and coal. Captive iron ore mining leases in Orissa are presently
under the process of allotment by the Government. A chrome ore deposit in
Orissa is being developed through Ghotaringa Minerals Limited, a subsidiary of
the Company. A share of 54 million tonne steam coal reserve has been jointly
allotted at Patrapara Coal Block in Talcher, Orissa.
VISA Steel is also setting up a fully integrated 2.5 million TPA Steel
Plant with 500 MW Captive Power Plant at Raigarh in Chhattisgarh with a total
investment of Rs. 80000.000 Millions.
The Company plans to integrate backwards to the mining of
VISA BAO Limited
A subsidiary of VISA Steel (with a shareholding of 65%, the balance 35%
being held by Baosteel - one of the largest Steel and Stainless Steel
manufacturers in
Ghotaringa Minerals Limited
A subsidiary of VISA Steel with a shareholding of 89% and the balance
11% held by Orissa Industries Limited is currently prospecting an area for
UNAUDITED
FINANCIAL RESULTS FOR THE THREE AND SIX MONTHS ENDED 31.12.2010
(Rs. In Millions)
|
Particulars |
3 Months Ended 31.12.2010 (Unaudited) |
9 Months Ended 31.12.2010 (Unaudited) |
|
1. Net Sales/ Income from Operations |
8365.729 |
8818.634 |
|
Other Operating Income |
103.624 |
212.847 |
|
Total |
8469.353 |
9031.481 |
|
2. Expenditure |
|
|
|
a. Increase/ Decrease in stock in trade and
work in process |
(77.944) |
(713.888) |
|
b. Consumption of raw material |
1417.597 |
5572.496 |
|
c. Purchase of traded goods |
1281.875 |
1733.129 |
|
d. Employees cost |
106.268 |
308.961 |
|
e. Depreciation |
121.261 |
302.204 |
|
f. Other Expenditure |
274.505 |
826.362 |
|
Total |
3123.562 |
8088.314 |
|
3. Profit from Operations before Interest
and Exceptional Item (1-2) |
345.801 |
943.267 |
|
4. Other Income |
-- |
-- |
|
5. Profit Before interest and Exceptional
Item (3-4) |
345.801 |
943.267 |
|
6. Interest (Net) |
192.404 |
522.759 |
|
7. Profit after Interest but before
Exceptional Item (5-6) |
163.397 |
420.508 |
|
8. Exceptional Item |
-- |
-- |
|
9. Profit/ Loss Before tax (7-8) |
163.397 |
420.508 |
|
10. Tax Expenses: |
|
|
|
Current Tax: |
32.346 |
93.830 |
|
Mat Credit Entitlement |
(28.851) |
(96.538) |
|
Deferred Tax |
46.699 |
142.685 |
|
Fringe Benefit Tax |
-- |
-- |
|
11. Net Profit/ Loss from ordinary
Activities after tax (9-10) |
103.203 |
262.632 |
|
12. Extraordinary item (Net of tax
expansion) |
-- |
-- |
|
13. Net Profit/ Loss for the period (11-12) |
103.203 |
262.632 |
|
14. Paid-up equity share capital (face value
of Rs. 10/- each) |
1100.000 |
1100.000 |
|
15. Reserve including Revaluation Reserve |
-- |
-- |
|
16. Earning per share (EPS) |
|
|
|
a) Basic and Diluted EPS |
0.94 |
2.57 |
|
17. Public Shareholding |
|
2.57 |
|
- Number of Shares |
28600000 |
28600000 |
|
- Percentage of Shares |
26.00 |
26.00 |
|
18. Promoters and promoter group
shareholding |
|
|
|
- Number of Shares |
-- |
-- |
|
- Percentage of shares (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 |
81400000 |
81400000 |
|
- Percentage of shares (as a % of the total
shareholding of promoter and promoter group) |
100.00 |
100.00 |
|
- Percentage of shares (as a % of the total
share capital of the company) |
74.00 |
74.00 |
PRESS RELEASE:
Revenues for Q2
FY’10-11 increased 30% at Rs. 3299.700 Millions
·
EBITDA for Q2 FY’10-11 at Rs. 433.000 Millions
·
PAT for Q2 FY’10-11 increased 18% at Rs. 103.100
Millions
VISA Steel, a part of the Rs. 50000.000 Millions VISA Group, is currently
a producer of Pig Iron, LAM Coke, Ferro Chrome, Sponge Iron and Power and is
setting up an integrated Special Steel Plant at Kalinganagar Industrial Complex
in Orissa. The VISA Group has business interests in Steel, Power, International
Trading, Shipping and Logistics.
The Company announced its second quarter (Q2) unaudited financial
results for FY’2010-11 after its Board Meeting held in Kolkata on 29th October
2010. During Q2 of FY’2010-11, VISA Steel has registered financial performance
with revenues at Rs. 3299.700 Millions, EBITDA at Rs. 433.000 Millions and PAT
of Rs. 103.100 Millions
(Rs.
In Millions)
|
2nd Quarter |
Revenue |
EBITDA |
PBT |
PAT |
|
Q2 FY’ 09-10 |
2528.100 |
442.400 |
191.100 |
87.100 |
|
Q2 FY’ 10-11 |
3299.700 |
433.000 |
151.000 |
203.100 |
|
% Growth |
30.52% |
[2.12%] |
[20.98%] |
18.37% |
During Q2 FY’10-11, LAM Coke production in Q2 FY’10-11 was 78,995 MT
compared to 85,105 MT during Q2 FY’09-10. The Hot Metal production in Q2 FY’10-11
was NIL versus 45,512 MT during Q2 FY’09-10. The Ferro Chrome production in Q2
FY’10-11 was 11,340 compared to 11,325 MT during Q2 FY’09-10. The Sponge Iron
production in Q2 FY’10-11 was 38,249 MT compared to 30,303 MT during Q2
FY’09-10 and power generation in Q2 FY’10-11 was 59.54 million units compared
to 53.12 million units during Q2 FY’09-10.
VISA Steel is setting up a 0.5 million TPA Special Steel Melt Shop, 0.5
million TPA Special Steel Bar and Wire Rod Mill and additional 25 MW Power Plant
to complete the integrated facility of special steel making in Orissa, with
captive power generation. VISA Steel is planning to integrate backwards into
mining of iron ore, chrome ore and coal.
VISA BAO Limited wherein VISA Steel holds 65% and Baosteel Resources,
VISA Steel has also signed an MoU with the Government of Madhya Pradesh
for setting up a 1.25 million TPA Steel Plant, 100,000 TPA Manganese Alloy
Plant and 300 MW Captive Power Plant in Madhya Pradesh with a total investment
of Rs. 40250.000 Millions. Commenting on the performance for Q2 FY’2010-11, Mr.
Vishal Agarwal, Managing Director, VISA Steel, said –
The prices for iron and steel products have
been weak whereas raw material prices have increased. This has put pressure on
margins. In addition, the disruption in supplies of iron ore due to closure of
OMC’s iron ore mines in Orissa has affected our Blast Furnace operations. We
expect supplies to commence shortly and Blast Furnace production to commence
from mid November 2010. With forward integration of Steel Melt Shop and Bar and
Wire Rod Mill and additional power generation, revenues and profitability are
expected to improve.”
PRESS RELEASE
Revenues for Q3
FY’10-11 increased 36% at Rs. 3469.400 Millions
PAT for Q3
FY’10-11 at Rs. 103.200 Millions
VISA Steel, a part
of the Rs. 50000 millions VISA Group, announced its third quarter (Q3)
unaudited financial results for FY’2010-11 after its Board Meeting held in
Kolkata on 4th February 2011.
During Q3 of
FY’2010-11, VISA Steel has registered financial performance with revenues at
Rs. 3469.400 millions, EBITDA at Rs. 467.100 millions and PAT of Rs. 103.200
Millions.
(Rs.
In Millions)
|
2nd Quarter |
Revenue |
EBITDA |
PBT |
PAT |
|
Q2 FY’ 09-10 |
2545.200 |
507.100 |
244.400 |
121.400 |
|
Q2 FY’ 10-11 |
3469.400 |
467.100 |
153.400 |
103.200 |
|
% Growth |
36.31% |
(7.88%) |
(37.23%) |
(14.99%) |
During Q3
FY’10-11, LAM Coke production was 105,894 MT compared to 89,355 MT during Q3 FY’09-10.
The Hot Metal production in Q3 FY’10-11 was 13,448 versus 42,845 MT during Q3
FY’09-10. The Ferro Chrome production in Q3 FY’10-11 was 9,292 MT compared to
12,826 MT during Q3 FY’09-10. The Sponge Iron production in Q3 FY’10-11 was
28,622 MT compared to 31,617 MT during Q3 FY’09-10 and power generation in Q3
FY’10-11 was 57.70 million units compared to 62.13 million units during Q3
FY’09-10.
Commenting on the
performance for Q3 FY’2010-11, Mr. Vishal Agarwal, Managing Director, VISA
Steel, said –
“Margins have been under pressure during the last quarter due to
non-availability and high prices of raw materials. Our Blast Furnace operations
have re-started and with forward integration of Steel Melt Shop and Bar and
Wire Rod Mill and additional power generation, revenues and profitability are
expected to improve going forward.”
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.44.30 |
|
|
1 |
Rs.72.92 |
|
Euro |
1 |
Rs.64.69 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
5 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
5 |
|
--CREDIT LINES |
1~10 |
5 |
|
--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 |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
45 |
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.