MIRA
INFORM REPORT
|
Report Date : |
25.02.2011 |
IDENTIFICATION DETAILS
|
Name : |
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Formerly Known As : |
MONNET ISPAT LIMITED |
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Registered Office : |
Monnet Marg, Mandir Hasaud, |
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Country : |
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Financials (as on) : |
31.03.2010 |
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Date of Incorporation : |
01.02.1990 |
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Com. Reg. No.: |
10-009826 |
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CIN No.: [Company
Identification No.] |
L02710CT1990PLC009826 |
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|
TAN No.: [Tax
Deduction & Collection Account No.] |
DELM09084F |
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|
PAN No.: [Permanent
Account No.] |
AAACM0501D |
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|
Legal Form : |
Public limited liability company. Company’s shares are listed on the
Stock Exchange |
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Line of Business : |
Manufacturers of Sponge Iron, Steel and Ferro Alloys. |
RATING & COMMENTS
|
MIRA’s Rating : |
A (64) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
Maximum Credit Limit : |
USD 66000000 |
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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 an established 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
|
Country Name |
Previous Rating (31.12.2009) |
Current Rating (01.04.2010) |
|
|
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
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Restricted |
C2 |
|
Off-credit |
D |
LOCATIONS
|
Registered Office : |
Monnet Marg, Mandir Hasaud, |
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E-Mail : |
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Website : |
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Factory 1 : |
Monnet Marg, Mandir Hasaud, |
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Tel No. : |
91 – 771 – 2471 334 – 339 |
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Fax No. : |
91 – 771-2471 250 |
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E-Mail : |
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Factory 2 : |
Village - Naharpali, Tehsil Kharsia, District Raigarh, Chhattisgarh |
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Tel No. : |
91 – 7762-
275451/ 52 |
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Fax No. : |
91 – 7762-275455 |
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E-Mail : |
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Factory 3 : |
Village - Milupara, Block-Tamnar, District Raigarh, Chhattisgarh |
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Factory 4 : |
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Tel No. : |
91-6764-224001,224002 |
|
Fax No. : |
91-6764-224003 |
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E-Mail : |
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Corporate Office : |
MONNET HOUSE, 11, Masjid Moth, Greater Kailash Part-ll, New
Delhi-110048, |
|
Tel. No.: |
91-11-29218542/46 |
|
Fax No.: |
91-11-29218541 |
|
E-mail : |
DIRECTORS
As On 31.03.2010
|
Name : |
Mr. Mohinder Singh Gujral |
|
Designation : |
Chairman |
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Name : |
Mr. Sandeep Jajodia |
|
Designation : |
Executive Vice-Chairman and Managing Director |
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Name : |
Mr. C. P. Baid |
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Designation : |
Dy. Managing Director |
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Name : |
Mr. K.K. Khanna |
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Designation : |
Executive Director |
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Name : |
Mr. P.L Nene |
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Designation : |
Non Executive Director |
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Name : |
Mr. G.C. Mrig |
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Designation : |
Non Executive Director |
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Name : |
Mr. Ajay Relan |
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Designation : |
Non Executive Director |
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Name : |
Mr. V.N. Kedia |
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Designation : |
Non Executive Director |
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Name : |
Mr. J.P. Lath |
|
Designation : |
Director |
KEY EXECUTIVES
|
Name : |
Mr. M.P. Kharbanda |
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Designation : |
Company Secretary |
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Board Committees |
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Audit Committee |
Mr. M.S. Gujral, Chairman Mr. G.C. Mrig, Member Mr. V.N. Kedia, Member Mr. M.R Kharbanda, Secretary |
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Investors'
Grievance/ Shareholders
Committee |
Mr. M.S. Gujral Mr. Sandeep Jajodia Mr. J.R Lath |
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Finance Committee |
Mr. Sandeep Jajodia Mr. J.R Lath |
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Executive Committee |
Mr. Sandeep Jajodia Mr. J.R Lath |
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Remuneration
Committee |
Mr. M.S. Gujral Mr. G.C. Mrig Mr. J.R Lath |
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Share Transfer
Committee |
Mr. J.R Lath Mr. V. N. Kedia Mr. M.R Kharbanda |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As On 12.02.2011
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
254,448 |
0.40 |
|
|
25,495,625 |
39.90 |
|
|
6,046,168 |
9.46 |
|
|
6,046,168 |
9.46 |
|
|
31,796,241 |
49.77 |
|
|
|
|
|
Total shareholding of Promoter and Promoter Group (A) |
31,796,241 |
49.77 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
1,201,675 |
1.88 |
|
|
108,700 |
0.17 |
|
|
1,600,365 |
2.50 |
|
|
20,016,537 |
31.33 |
|
|
1,655,570 |
2.59 |
|
|
1,655,570 |
2.59 |
|
|
24,582,847 |
38.48 |
|
|
|
|
|
|
5,452,127 |
8.53 |
|
|
|
|
|
|
1,720,582 |
2.69 |
|
|
205,908 |
0.32 |
|
|
134,908 |
0.21 |
|
|
73,957 |
0.12 |
|
|
58,165 |
0.09 |
|
|
786 |
- |
|
|
2,000 |
- |
|
|
7,513,525 |
11.76 |
|
Total Public shareholding (B) |
32,096,372 |
50.23 |
|
Total (A)+(B) |
63,892,613 |
100.00 |
|
(C) Shares held by Custodians and against which Depository Receipts
have been issued |
- |
- |
|
|
- |
- |
|
|
- |
- |
|
|
- |
- |
|
Total (A)+(B)+(C) |
63,892,613 |
- |
(1) Indian
Individuals / Hindu Undivided Family
Directors/Promoters & their Relatives
& FriendsBUSINESS DETAILS
|
Line of Business : |
Manufacturers of Sponge Iron, Steel and Ferro Alloys. |
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Products : |
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PRODUCTION STATUS (As on 31.03.2010)
|
Particulars |
Unit |
|
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* Installed
Capacity at |
|
|
|
-Sponge Iron MS /SS Products |
MT |
300000 |
|
a) - Ingots & Billets |
MT |
300000 |
|
b) - Structural Steel |
MT |
200000 |
|
- Ferro Alloys** |
MT |
58400 |
|
- Power |
MW |
60 |
|
|
|
|
|
* Installed
Capacity at Raigarh |
|
|
|
- Sponge Iron |
MT |
500000 |
|
- Power |
MW |
90 |
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|
|
|
|
Production |
|
|
|
- Sponge Iron |
MT |
710044 |
|
- MS /SS Products |
MT |
115325 |
|
-Structural Steel |
MT |
90714 |
|
- Ferro Alloys |
MT |
0 |
|
-Coal |
MT |
1000119 |
|
- Power |
‘000 Units |
1020661 |
* As certified by the Management and
relied upon by the Auditors being a technical matter.
** Includes 12000 MT on Lease
GENERAL INFORMATION
|
Bankers : |
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Facilities : |
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Banking
Relations : |
-- |
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Auditors : |
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|
Name : |
O.R Bagla and Company Chartered Accountants |
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Address : |
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Associates : |
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Subsidiaries : |
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significant
influence : |
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Subsidiary of
Subsidiaries : |
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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 |
|
|
|
|
|
|
112000000 |
Equity Share |
Rs.10/- each |
Rs. 1120.000 Millions |
|
20000000 |
Add: Equity Shares |
Rs. 10/- each |
Rs. 200.000 Millions |
|
|
Total |
|
Rs. 1320.000
Millions |
Issued, and Subscribed Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
52268013 |
Equity Share |
Rs.10/- each |
Rs. 522.696
Millions |
|
|
|
|
|
Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
52259609 |
Equity Share |
Rs. 10/- each |
Rs. 522.696 Millions |
|
|
Add : Shares Forfeited |
|
Rs. 0.172 Million |
|
Less : |
|
|
|
|
1596 |
Equity Share [bought back and extiguished during the year in accordance with
Section 77A of the Companies Act, 1956] |
Rs.10/- each |
(Rs. 0.016 Million) |
|
|
|
|
|
|
52258013 |
Equity shares |
Rs.10/- each |
Rs. 522.753 Millions |
|
|
|
|
|
|
Add |
|
|
|
|
2203339 |
Equity Share Suspense Account (to be issued pursuant to scheme of amalgamation of Mounteverest Trading and Investment Limited with Monnet Ispat and Energy Limited.) |
Rs. 10/- each |
Rs. 22.033 Millions |
|
|
Total |
|
Rs. 544.786
Millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
544.786 |
479.631 |
479.972 |
|
|
2] SUBSCRIPTION AGAINST SHARE WARRANTS |
268.825 |
0.000 |
209.250 |
|
|
3] Reserves & Surplus |
15916.860 |
12383.016 |
10198.362 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
16730.471 |
12862.647 |
10887.584 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
12509.230 |
10168.542 |
9456.668 |
|
|
2] Unsecured Loans |
2440.606 |
3083.256 |
1524.070 |
|
|
TOTAL BORROWING |
14949.836 |
13251.798 |
10980.738 |
|
|
DEFERRED TAX LIABILITIES |
1195.789 |
1139.522 |
908.482 |
|
|
|
|
|
|
|
|
TOTAL |
32876.096 |
27253.970 |
22776.800 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
11283.170 |
11268.854 |
10373.012 |
|
|
Capital work-in-progress |
7212.132 |
3096.625 |
2661.185 |
|
|
|
|
|
|
|
|
INVESTMENT |
5454.039 |
2156.279 |
1384.070 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
2188.051
|
1844.559
|
2217.080 |
|
|
Sundry Debtors |
1288.661
|
1097.324
|
1050.925 |
|
|
Cash & Bank Balances |
2052.423
|
2455.848
|
3708.335 |
|
|
Other Current Assets |
0.000
|
0.000
|
0.000 |
|
|
Loans & Advances |
5898.310
|
6827.116
|
3376.720 |
|
Total
Current Assets |
11427.445
|
12224.847
|
10353.060 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
1500.906
|
1436.826
|
1208.247 |
|
|
Other Current Liabilities |
302.131
|
282.312
|
244.273 |
|
|
Provisions |
881.861
|
599.342
|
542.004 |
|
Total
Current Liabilities |
2684.898
|
2318.480
|
1994.524 |
|
|
Net Current Assets |
8742.547
|
9906.367
|
8358.536 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
184.208 |
825.841 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
32876.096 |
27253.970 |
22776.800 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
14806.952 |
15487.259 |
11590.691 |
|
|
|
Other Income |
317.501 |
476.665 |
483.699 |
|
|
|
TOTAL (A) |
15124.453 |
15963.924 |
12074.390 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Material, Manufacturing and Others |
8502.298 |
9966.914 |
8550.268 |
|
|
|
Salaries, Wages and Amenities |
733.427 |
608.163 |
408.976 |
|
|
|
Repair and Maintenance |
91.789 |
56.274 |
48.356 |
|
|
|
Administrative, Selling and Other Expenses |
620.440 |
664.330 |
519.133 |
|
|
|
Loss on |
0.000 |
157.039 |
0.000 |
|
|
|
Miscellaneous Expenditure W/Off |
184.208 |
0.000 |
0.000 |
|
|
|
Increase/Decrease In Stocks |
218.961 |
444.878 |
(455.390) |
|
|
|
TOTAL (B) |
10351.123 |
11897.598 |
9071.343 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
4773.330 |
4066.326 |
3003.047 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
743.677 |
706.045 |
350.521 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
4029.653 |
3360.281 |
2652.526 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
716.655 |
653.038 |
444.851 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
3312.998 |
2707.243 |
2207.675 |
|
|
|
|
|
|
|
|
|
Less |
TAX (I) |
621.955 |
547.202 |
546.041 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-I) (J) |
2691.043 |
2160.041 |
1661.634 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
6036.554 |
4434.255 |
3224.025 |
|
|
|
|
|
|
|
|
|
|
BALANCE
B/F ON AMALGAMATION |
116.427 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
270.000 |
220.000 |
167.000 |
|
|
|
Transfer to Debenture Redemption Reserve |
172.049 |
57.200 |
0.000 |
|
|
|
|
|
|
|
|
Less |
Dividend |
|
|
|
|
|
|
|
- Proposed
Dividend on Equity Shares |
285.876 |
239.790 |
123.111 |
|
|
|
- Interim Dividend on Equity Shares |
0.000 |
0.000 |
119.980 |
|
|
|
- Corporate Dividend Tax |
48.585 |
40.752 |
41.313 |
|
|
BALANCE CARRIED
TO THE B/S |
8067.514 |
6036.554 |
4434.255 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
FOB Value of Exports |
466.427 |
511.714 |
1696.919 |
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
-Capital Goods including Spares etc. |
68.217 |
255.185 |
264.363 |
|
|
|
-Raw Material etc. |
10.054 |
136.712 |
17.591 |
|
|
TOTAL IMPORTS |
|
391.897 |
281.954 |
|
|
|
|
|
|
|
|
|
|
Basic Earnings
Per Share (Rs.) |
53.64 |
42.98 |
NA |
|
|
|
Diluted Earnings
Per Share (Rs.) |
47.73 |
39.02 |
NA |
|
QUARTERLY RESULTS
|
PARTICULARS |
|
30.06.2010 |
30.09.2010 |
31.12.2010 |
|
|
|
1st Quarter |
2nd Quarter |
3rd Quarter |
|
Net Sales |
|
4203.800 |
3606.500 |
3471.400 |
|
Total Expenditure |
|
2991.100 |
2559.500 |
2362.200 |
|
PBIDT (Excl OI) |
|
1212.700 |
1047.000 |
1109.200 |
|
Other Income |
|
20.200 |
74.900 |
64.900 |
|
Operating Profit |
|
1232.900 |
1121.900 |
1174.100 |
|
Interest |
|
143.800 |
119.300 |
53.700 |
|
PBDT |
|
1089.100 |
1002.600 |
1120.400 |
|
Depreciation |
|
181.600 |
184.000 |
188.800 |
|
Profit Before Tax |
|
907.500 |
818.600 |
931.600 |
|
Tax |
|
180.400 |
162.600 |
229.800 |
|
Profit After Tax |
|
727.100 |
656.000 |
701.800 |
|
Net Profit |
|
727.100 |
656.000 |
701.800 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
PAT / Total Income |
(%) |
17.79
|
13.53
|
13.76 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
22.37
|
16.96
|
18.28 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
14.59
|
11.52
|
10.65 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.20
|
0.21
|
0.20 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
1.05
|
1.21
|
1.19 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
4.26
|
5.27
|
5.19 |
LOCAL AGENCY FURTHER INFORMATION
HISTORY
The Company formerly known as Monnet Ispat Limited (MIL) was
incorporated on 1st February 1990. The Company was promoted jointly by Sandeep
Jajodia and Jindal Strips, its principal activities are to manufacture and
market Sponge Iron, Steel and Ferro Alloys. In addition, subject is engaged in
mining of coal and power generation for captive consumption. For the
manufacturing purpose, the company has two workstations in Chattisgarh state.
The
Company Performance
During the year, the profit after tax rose to 2691.000 millions (previous
year Rs. 2160.000 millions) registering a growth of 24.58% in-spite of decline
in sales by 4.39% to 14807.000 millions as a result of Company's continuing
efforts to reduce its cost of production. However, the Company had to
discontinue the operations of its Ferro Alloys Division since the cost of
production has gone higher than the market price. Ferro Alloys production is
highly power intensive and consequently, the company was able to sell the
surplus power in the open market yielding high returns.
Expansion Plans
The Company is implementing a steel project to produce 1.5 MTPA of Flat
and Long products in equal proportions. Besides, additional capacity of power
is also being implemented to fully support the power requirement of expanded
capacity. The steel expansion has been designed to be fully integrated to raw
materials like coal and iron ore. Raw material risk arrangement in terms of
pricing volatility is mitigated through captive availability from Mines and
Backward integration facilities. Steel production would be highly value added
and improve the operating margins.
Merger of Mounteverest Trading and Investment Limited into the company
It was proposed to merge Mounteverest Trading and Investment Limited
(MTIL), a Group Company, into Monnet Ispat and Energy Limited. The reasons for
the merger are that MTIL has made investment in a Company which has similar
line of activity as of MIEL. Therefore, it was thought prudent from the point
of view of the interest of various stakeholders and in compliance with the best
practices of Corporate Governance to bring the investment under the Balance
Sheet of Monnet Ispat and Energy Limited
The Hon'ble High Court of Chhattisgarh has approved the merger on
09.11.2010 and making the merger effective from 01.04.2009. Accordingly, the
Company is presenting the merged Annual Accounts for the year ended on
31.03.2010. Other post merger formalities have commenced.
Risk Management
The Company's Risk Management Policy is backed by strong internal
control systems. The risk management framework consists of policies and
procedures framed at management level and strictly adhered to and monitored at
all levels. The Company also has a sound internal audit system in place. The
audit consists of an independently constituted team in the company and outside
auditors appointed for the purpose. The risk policy and internal Audit Reports
are periodically reviewed by the Board and Audit Committee with emphasis on
maintaining its effectiveness in dynamic business environment.
CSR Initiatives
As a responsible corporate citizen, Monnet has drawn for itself a very
wide definition of its stakeholders. In a broader perspective, it sees itself
as a significant player on the national scenario, contributing towards the
growth of the economy and the society at large. In tune with this line of
thought, it has been consciously following the policy of contributing for the
welfare of society. The company today is focusing its energies on the
development of social infrastructure like healthcare facilities, provision of
drinking water and making of roads in the surrounding villages of there plants
at
MONNET FOUNDATION - a CSR arm of the company is enlarging the scope of
socio-economic development in the areas adjoining the plant at
commenced operations, imparting urban standard education to Students of
these remote areas.. Mobile Medical Vans are also in service in the nearby
surrounding areas offering basic health check-ups and emergency facilities.
MANAGEMENT DISCUSSION AND ANALYSIS
Industrial Structure and Developments / Risks and Concerns
The Global Crude Steel production during 2009 was 1220 million tons
compared to 1326 million tons in 2008 reflecting a negative growth of 8%. As
compared to that, the Indian Crude Steel production marginally rose from 55.1
million ton to 56.6 million tons next to
spite of some forced imports on account of generally slow demand in the
global market. The production of flat products and long products in the Country
increased by an average of 10% during the year. The imports of both flat and
long product grew by about 16% and 36% respectively. However, on an aggregate
basis, the consumption of such both flat and long steel was higher in the
domestic market and resulting in dip of exports particularly in the flat
segment. The challenge of growth of steel in
Opportunities and Threats / Outlook
The steel industry has come to be completely dependant on the firm,
stable and competitive pricing of Raw Materials. Raw Material availability continues
to be a major challenge which makes it extremely important to either generate
captive sources of raw materials or have long term sustainable and viable raw
material tie ups for optimizing the profitability. Coal and
The company is also increasing the capacity of power to ensure full availability
of captive power for the proposed steel operations. The expansion in the steel
capacity is progressing as per schedule and will catapult the Company into
major steel producing company in the country. The main threat to the current
program lies in obtaining the regulatory clearances for the mines and timely
execution of the expansion.
The outlook of the Company based on the above initiatives is quite
optimistic. It is expected that the efforts will yield the visible impact on
the expansion of revenues and profitability.
Segment wise or Product wise Performance
During the year , the sponge iron production grew by 18% to 710044 MT,
Structural Steel production grew by 13% to 90714 MT and Power Generation grew
by 48% to 1020661000 Units. Production in Coal Division was at the same level
as in previous financial year but the production of M.S./S.S. Products saw a
decline of 16% to 115325.
Internal Control Systems and their Adequacy
The Company has adequate internal control systems commensurate with the
size and nature of the business and are supplemented by an extensive programme
of internal audits, reviews by management and documented policies, guidelines,
and procedures to provide reasonable assurance that all assets are safeguarded,
transactions are authorized, recorded and reported properly. The Company has an
independent MIS and Audit Department to oversee the day-to-day functioning of
the Company. The
Discussion on Financial Performance with respect to Operational
Performance
The Company is continuing to make cost cutting efforts to keep itself at
an advantageous position vis-ŕ-vis its peers in the industry. The Company
expects that its expanded capacity in sponge iron division and in power
division, that were put into commercial operation, will further strengthen the
bottom line.
Material Developments in Human Resources/Industrial Relations front
Industrial relations in the Company are satisfactory. The relations with
the labour are cordial. The operations of the plant are under the charge of independent
Chief Executive Officers, who have rich experience and qualifications in the
field.
|
Contingent Liabilities not provided for * |
Rs in Millions
[As on 31.03.2010] |
|
In respect of disputed Excise Demands |
108.482 |
|
In respect of disputed Sales Tax Demand |
112.158 |
|
In respect of disputed Entry Tax Demand |
49.496 |
|
In respect of disputed Demands for water charges by Water Resources
Division. |
27.968 |
|
Other claims against the Company not acknowledged as debt. |
11.018 |
|
In respect of electricity Duty on generation of power |
54.917 |
|
*Does not include matters dealt with elsewhere in the notes on
accounts |
|
UNAUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED
ON 31st MARCH, 2010
Rs in Millions
|
Sl. No. |
Particulars |
QUARTER ENDED (Unaudited) |
|
|
|
31.03.2010
|
|
|
|
|
|
1 |
Gross Sales |
4673.700 |
|
|
Less Excise Duty |
289.800 |
|
|
(a) Net Sales / Income from Operations |
4383.900 |
|
|
(b) Other Operating Income |
0.000 |
|
|
Total Income |
4383.900 |
|
2 |
Expenditure |
|
|
|
a) Increase / Decrease in stock in trade and work in progress |
117.900 |
|
|
b) Consumption of Raw Materials |
2307.500 |
|
|
c) Purchase of Traded goods |
60.600 |
|
|
d) Employees Cost |
196.700 |
|
|
e) Depreciation |
178.200 |
|
|
f) Power & Fuel |
97.100 |
|
|
g) Other Expenditure |
320.400 |
|
|
Total |
3278.400 |
|
3 |
Profit from Operations before Other Income, Interest & Exceptional
Items (1-2) |
1105.500 |
|
4 |
Other Income |
11.700 |
|
5 |
Profit before Interest & Exceptional Items (3+4) |
1117.200 |
|
6 |
Interest |
175.100 |
|
7 |
Profit after Interest but before Exceptional Items (5-6) |
942.100 |
|
8 |
Exceptional Items |
|
|
9 |
Profit (+) / Loss (-) from Ordinary Activities before tax (7+8) |
942.100 |
|
10 |
Tax expenses |
|
|
|
a) Current Tax |
175.500 |
|
|
b) Fringe Benefit Tax |
0.000 |
|
|
c) Defferred Tax |
41.900 |
|
|
Total |
217.400 |
|
11 |
Net Profit (+) / Loss (-) from ordinary Activities after tax (9-10) |
724.700 |
|
12 |
Extraordinary Item (net of tax expenses) |
0.000 |
|
13 |
Net Profit (+) / Loss (-) for the period (11-12) |
724.700 |
|
14 |
Cash Profit |
944.800 |
|
15 |
Paid-up Equity Share Capital (Rs.10/- per share) |
522.600 |
|
16 |
Reserves excluding Revaluation Reserve as per balance sheet of
previous accounting year |
-- |
|
17 |
Earnings Per Share (EPS) (Rs.) (not annualized) |
|
|
|
(a) Basic EPS before & after Extraordinary items |
13.87 |
|
|
(b) Diluted EPS before & after Extraordinary items |
13.87 |
|
18 |
Public Shareholding - No. of Shares |
29101843 |
|
|
- Percentage of Shareholding |
55.69 |
|
19 |
Promoters and Promoter Group Shareholding |
|
|
|
a) Pledge / Encumbered |
|
|
|
- Percentage of Shares (as a % of the total share capital of the
company) |
0.00 |
|
|
- Percentage of Shares (as a % of the total share capital of the
company) |
0.00 |
|
|
b) Non-encumbered |
|
|
|
- Number of shares |
23156170 |
|
|
- Percentage of Shares (as a % of the total shareholding of the
Promoter and Promoter group) |
100.00 |
|
|
- Percentage of Shares (as a % of the total shareholding of the
Promoter and Promoter group) |
44.31 |
FIXED ASSETS
- Land and Site
Development
- Railway
Siding
- Building
- Plant and
Machinery
- Furniture and
Fixtures
- Vehicle
AS PER WEBSITE DETAILS
Corporate:
Subject is the flagship company of the well diversified Monnet Group.
The Group currently manages manufacturing units for Sponge
Iron, Steel Melting and Rolling Mill, Ferro- Alloys Plant, Power
Generation units, Mining and Mineral Beneficiation of Coal,
In addition to its current thrusts, the group has envisaged ambitious growth plans in diverse sectors and has devised strategic partnerships with world leaders to continue forays into sectors viz clean coal technologies, port development and oil and gas sectors.
PRESS RELEASE:
New Delhi, 08.02.2011: Monnet Ispat and Energy Limited (MIEL) a flagship company of Monnet Group promoted by Mr. Sandeep Jajodia, is the second largest coal-based sponge iron producer in the country, today reported net profit of Rs. 701.800 Millions for the quarter ended 31.12.2010, for the quarter net sales stood at Rs. 3470.000 Millions and EBITDA was at Rs 1109.200 millions. EPS was at Rs. 11.28.
Commenting on the results, Mr. Sandeep Jajodia, Executive
Vice Chairman and Managing Director, MIEL, said,
The principal product of the company is sponge iron and power generation. The
previous quarter has been very challenging both in the steel business as well
as well as the power sales. The merchant power rates crashed from an average
tariff of Rs.4.90 per unit in the first quarter to a net realization of Rs.3.39
per unit in the quarter. There is no decline in the power demand however the
prices crashed mainly on account of the reluctance of the State Electricity
Boards to buy power on the spot market.
In the steel segment the prices struggled for the first half of the quarter and
started to improve towards the second half and the company has reported the net
increase in the realization of sponge iron on sequential quarter basis.
The company’s margins remain protected on account of lower cost of its main raw material, which is iron ore. Although the market prices of iron ore relatively firmed up during the quarter but the efficient management of the raw material and the prices helped the company to reduce the iron ore cost. During the quarter the company operationalized iron ore washery plant at Raigarh and beneficiated low grade iron ore and blended with the sized iron ore to achieve a better cost.
Commenting on the growth drivers for the coming quarters,
Mr. Jajodia added,
The company reports that the iron ore prices continue to show improvement in the current quarter and already hovering around Rs.19, 000 per tonne and the prices are likely to sustain in future. Since the realization from the power sales is likely to improve with the improved off take of power from State Electricity Board, however a strong momentum in merchant rates of power is likely to gain by the next quarter.
The steel expansion is also progressing on schedule at Raigarh and the first
module of the plant in the form of 80 MW power plant will start commissioning
from the next quarter. The expansion will further roll out in the subsequent
quarters.
The company also announced an additional capacity of 660 MW to be put up at
Angul, Orissa at the existing location where the company is already putting up
a 1050 MW power plant.
About Monnet Group:
Monnet Ispat and Energy Limited (MIEL): MIEL is promoted
by Mr. Sandeep Jajodia. Its principal activities include manufacturing and
marketing of Sponge Iron, Steel and Ferro Alloys. In addition, MIEL is engaged
in mining of mineral assets like coal and iron ore and is also involved in the
generation of power for captive consumption. The Monnet Group has manufacturing
facilities in
Monnet Power Company Limited (MPCL): MPCL is currently executing a 1050 MW IPP in the state of Orissa backed by captive coal mines. The project consists of 2 units of 525 MW to be supplied by BHEL. The project has all its statutory approvals and clearances in place and has achieved financial closure. Both of these 525 MW each unit is expected to get commissioned between September and December 2012. The Company is now in the process of developing an additional 2000 MW which is expected to come up by June 2014.
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.45.37 |
|
|
1 |
Rs.73.54 |
|
Euro |
1 |
Rs.62.39 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
8 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT LINES |
1~10 |
7 |
|
--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 |
|
64 |
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 |
|
- |
NB |
New Business |
- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.