MIRA
INFORM REPORT
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Report Date : |
21.01.2011 |
IDENTIFICATION DETAILS
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Name : |
VEDANTA ALUMINIUM
LIMITED (w.e.f. 25.08.2007) |
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Formerly Known As : |
VEDANTA ALUMINA LIMITED |
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Registered Office : |
SIPCOT Industrial
Complex, |
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Country : |
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Financials (as on) : |
31.03.2010 |
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Date of Incorporation : |
18.01.2001 |
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Com. Reg. No.: |
18 – 69645 |
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CIN No.: [Company
Identification No.] |
U31300TN2001PLC069645 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
BBNV00081E MUMV14868A |
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PAN No.: [Permanent
Account No.] |
AAHCS6869A |
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Legal Form : |
A closely held
public limited liability company |
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Line of Business : |
Manufacturer of
metallurgical grade alumina and other high quality aluminum products. |
RATING & COMMENTS
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MIRA’s Rating : |
B (29) |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Maximum Credit Limit : |
USD 66000000 |
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Status : |
Moderate |
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Payment Behaviour : |
Slow |
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Litigation : |
Clear |
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Comments : |
Subject is an established company having moderate track. There appears
huge accumulated losses recorded by the company. However, trade relations are
reported as fair. Business is active. Payments are reported to be slow. The company can be considered for business dealings with some caution.
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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 |
INFORMATION PARTED BY
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Name : |
Mr. Sunil |
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Designation : |
Accounts department |
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Contact No.: |
91-22-40058000 |
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Date : |
20.01.2011 |
LOCATIONS
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Registered Office : |
SIPCOT Industrial
Complex, |
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E-Mail : |
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Corporate Office : |
Vedanta House 75,
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Tel. No.: |
91-22-66461000 |
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Fax No.: |
91-22-66461451 |
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Regional Office : |
Located At: ·
Core -6, 2nd Floor, Scope Complex, Tel. No.: 91-11-24360091 / 24361137 ·
705, 7th Floor north block rear wing, manipal centre, Near
dickension Road, Tel. No.: 91-80-25596000 ·
Kolkata : 20th floor, Chatterjee International Centre, 33A, |
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Project Office: |
Corporate Communications Department, First Floor, City Mart Complex,
Bubaneshwar, Orissa. |
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E-Mail : |
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HR Department /
Commercial Department |
PMO Office, Bhurkahamunda, Po-Sripura, Dist- Jharsuguda, Orissa,
Pin-768202 |
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E-Mail : |
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Commercial Department Lanjigarh : |
Aluminium Refinary Projects, At/ |
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E-Mail : |
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Marketing Department: |
Solitaire Corporate Park, Business Square, 'C' Wing, 2nd Floor, Andheri-Kurla
Road, Chakala, Andheri (East), Mumbai-400093, Maharashtra, India |
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Tel. No.: |
91-22-66434641 |
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E-Mail : |
DIRECTORS
As on 11.06.2010
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Name : |
Mr. Tarun Jain |
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Designation : |
Additional
Director |
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Address : |
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Date of Birth/Age : |
06.03.1960 |
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Date of Appointment : |
28.01.2004 |
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Name : |
Mr. Navin Kumar
Agarwal |
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Designation : |
Director |
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Address : |
8/738, |
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Date of Birth/Age : |
11.01.1961 |
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Date of Appointment : |
18.01.2001 |
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Name : |
Mr. Anil Kumar
Agarwal |
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Designation : |
Director |
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Address : |
113/114, Samudra
Mahal, Worli, Mumabi-400018, |
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Date of Birth/Age : |
07.09.1952 |
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Date of Appointment : |
18.01.2001 |
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Name : |
Mr. Mansoor
Siddiqi |
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Designation : |
Director |
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Address: |
103, Bldg No.12,
Indra Darshan II, Oshiwara, Andheri (west), Mumbai – 400 053, |
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Date of
Birth/Age: |
31.08.1953 |
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Date of
Appointment: |
04.06.2007 |
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KEY EXECUTIVES
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Name : |
Ms. Prerana Halwasiya |
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Designation : |
Secretary |
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Address : |
15 A, Mahatma Gandhi Marg Hazratgunj, |
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Date of Birth/Age : |
21.05.1984 |
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Date of Appointment : |
19.01.2009 |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 11.06.2010
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Names of Shareholders |
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No. of Shares |
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Sterlite
Industries ( |
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252119947 |
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Twinstar Holdings
Limited, |
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388860652 |
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Welter Trading
Limited, |
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213675471 |
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Mr. Anil Agarwal |
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15 |
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Mr. Tarun Jain |
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15 |
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Mr. Navin Agarwal |
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15 |
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Mr. Mansoor
Siddiqi |
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15 |
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Mr. Din Dayal
Jalan |
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15 |
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Mr. Kuldip Kumar
Kaura |
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15 |
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Total |
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854656160 |
As on 11.06.2010
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Category |
Percentage |
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Foreign holdings( Foreign institutional
investor(s), Foreign companie(s) Foreign financial institution(s),
Non-resident Indian(s) or Overseas Corporate bodies or Others |
70.50 |
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Bodies corporate |
29.50 |
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Directors or relatives of Directors |
0.00 |
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Other top fifty shareholders |
0.00 |
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Total |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturer of
metallurgical grade alumina and other high quality aluminum products. |
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Products : |
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Purchasing Terms : |
Cash, Credit (30 / 60 / 90 days) |
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Selling Terms : |
Cash, Credit (30 / 60 / 90 days) |
GENERAL INFORMATION
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Customers : |
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No. of Employees : |
1500 (In office
and In factory) (Approximately) |
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Bankers : |
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Facilities : |
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Banking
Relations : |
- |
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Financial
Institutions: |
IL and FS Trust Company Limited, IL and FS Financial Center, Plot No.
C-22, G Block Bandra Kurala Complex, Bandra East, Mumbai-400 051, |
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Auditors : |
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Name : |
Deloitte Haskins
and Sells Chartered
Accountants |
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Address : |
12, |
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Tel. No.: |
91-22-66679000 |
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Fax No.: |
91-22-66679025 |
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Subsidiary Companies: |
Allied Port
Services Private Limited U63090TN2004PTC054537 |
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CAPITAL STRUCTURE
As on 31.03.2010
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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1,500,000,000 |
Equity Shares |
Rs.2/- each |
Rs. 3000.000millions |
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Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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854,656,250 |
Equity Shares |
Rs.2/- each |
Rs.1709.313
Millions |
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FINANCIAL DATA
[all figures are in
Rupees Millions]
ABRIDGED BALANCE
SHEET
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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 |
1709.312 |
588.465 |
528.388 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
20264.238 |
16054.096 |
10090.751 |
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4] (Accumulated Losses) |
(5365.471) |
(5365.471) |
(61.741) |
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NETWORTH |
16608.079 |
11277.090 |
10557.398 |
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LOAN FUNDS |
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1] Secured Loans |
70949.060 |
45970.996 |
23195.362 |
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2] Unsecured Loans |
151426.642 |
93309.291 |
44795.795 |
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TOTAL BORROWING |
222375.702 |
139280.287 |
67991.157 |
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DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
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TOTAL |
238983.781 |
150557.377 |
78548.555 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
127112.810 |
31252.027 |
1681.831 |
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Capital work-in-progress |
115944.714 |
119425.541 |
76102.710 |
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INVESTMENT |
919.988 |
586.588 |
451.680 |
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DEFERREX TAX ASSETS |
0.000 |
0.000 |
8.367 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
7154.353
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4912.528
|
2980.621
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Sundry Debtors |
2479.465
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854.439
|
41.607
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Cash & Bank Balances |
1313.042
|
33.453
|
27.698
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Other Current Assets |
215.916
|
169.278
|
0.000
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Loans & Advances |
13355.207
|
11558.467
|
7735.073
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Total
Current Assets |
24517.983
|
17528.165
|
10784.999
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Sundry Creditors |
29341.470
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14276.574
|
8990.317
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Other Current Liabilities |
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3930.327
|
10475.309
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Provisions |
170.244
|
28.043
|
5.723
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Total
Current Liabilities |
29511.714
|
18234.944
|
10481.032
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Net Current Assets |
(4993.731)
|
(706.779)
|
303.967
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
238983.781 |
150557.377 |
78548.555 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
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SALES |
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Income |
14852.450 |
2068.830 |
0.000 |
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Other Income |
6628.300 |
79.106 |
0.000 |
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TOTAL (A) |
21480.750 |
2147.936 |
0.000 |
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Less |
EXPENSES |
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Manufacturing Expenses |
15978.553 |
4567.299 |
0.000 |
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Employees Cost |
832.453 |
212.851 |
0.000 |
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Administrative Expenses |
890.254 |
242.714 |
5.821 |
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S and D Expense |
161.005 |
97.822 |
0.000 |
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Prior Period Items |
0.000 |
0.000 |
47.979 |
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Transferred to Capital work in Progress |
(4948.383) |
(2840.237) |
0.000 |
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TOTAL (B) |
12913.885 |
2280.449 |
53.800 |
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Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
8566.865 |
(132.513) |
(53.800) |
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Less |
FINANCIAL
EXPENSES (D) |
3532.555 |
4244.310 |
0.000 |
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PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
5034.310 |
(4376.823) |
(53.800) |
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Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
3035.803 |
836.668 |
40.416 |
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PROFIT BEFORE
TAX (E-F) (G) |
1998.507 |
(5213.491) |
(94.216) |
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Less |
TAX (H) |
0.000 |
90.239 |
(45.127) |
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PROFIT AFTER TAX
(G-H) (I) |
1998.507 |
(5303.730) |
(49.089) |
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Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
(5365.471) |
(61.741) |
(12.652) |
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|
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|
|
|
|
|
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BALANCE CARRIED
TO THE B/S |
(5365.471) |
(5365.471) |
(61.741) |
|
|
|
|
|
|
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EARNINGS IN
FOREIGN CURRENCY |
9520.900 |
4330.345 |
338.280 |
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Earnings Per
Share (Rs.) |
2.34 |
(93.77) |
(0.93) |
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Expected Sales (2010-2011) : Rs. 18000.000 millions
KEY RATIOS
|
PARTICULARS |
|
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
PAT / Total Income |
(%) |
9.30 |
(242.72)
|
0.00 |
|
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Net Profit Margin (PBT/Sales) |
(%) |
13.45 |
(252.00)
|
0.00 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
1.31 |
(10.69)
|
(4.42) |
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Return on Investment (ROI) (PBT/Networth) |
|
0.12 |
0.46
|
0.01 |
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Debt Equity Ratio (Total Liability/Networth) |
|
15.16 |
13.97
|
0.99
|
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|
|
|
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|
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Current Ratio (Current Asset/Current Liability) |
|
0.83 |
0.96
|
1.03
|
LOCAL AGENCY FURTHER INFORMATION
Sundry Creditors
Details
(Rs.
in Millions )
|
Particulars |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
Sundry Creditors |
|
|
|
|
Micro small and Medium enterprises * |
NA |
3.417 |
0.308 |
|
Others |
NA |
3389.695 |
1777.435 |
|
Capital Goods |
NA |
10883.462 |
7212.882 |
|
|
NA |
|
|
|
Total |
NA |
14276.574 |
8990.625 |
NOTE:
The Registered Office of the Company has been
shifted from “Vedanta 75, Nehru Road Vile Parle (East), Mumbai – 400 099,
OPERATIONS :
The Company’s Alumina Refinery in Lanjigarh has been fully commissioned and capitalized. The Refinery would meet the present requirements of Alumina of the Company.
The Company has fully commissioned and capitalized 304 Pots at the Pot-line 1 of its aluminum smelter at Jharsuguda having capacity of 0.250 millions mtpa and 5 Units of captive power plant having capacity of 675 MW with effect from December 1, 2009. In respect of Pot line II, 228 pots with capacity of 0.187 millions mtpa and further 4 Units of captive power plant of 540 MW were fully commissioned and capitalized with effect from March 1, 2010.
The remaining section of Pot Line 2 (76 Pots) having capacity of 0.062 millions mtpa is in the process of stabilization and is expected to be fully operational by Q1 of 2010-11.
INDUSTRY OUTLOOK
The recovery in the global aluminum industry gained momentum during the year as the fiscal and monetary stimulus package of the Government as well the inventory cycle gave a boost to industrial production. The overall global aluminum demand is expected to rise by 7.7% in 2010 and by 9 % in 2011.
The Indian Economy has shown greater resilience to the
global recession as compared to many other economies of the world.
The enhanced Aluminum production capacities being set up by
the Company are expected to create tremendous opportunities for the Company considering
the expected increase in demand especially in
SUBSIDIARY COMPANY
During the year the Company has acquired the entire paid up
capital of Allied Port Services Private Limited (APSPL) comprising of 10,000
equity shares of Rs. 10/- each from South India Corporation Limited and its
associates. APSPL owns an alumina export facility at
The Company has fully repaid the loan to APSL from South India Corporation Limited. Consequent to the repayment the loans due to the Company from APSPL is Rs.459.900 millions.
In terms of the provisions of the Companies Act, 1956, copies of the Balance Sheet, Profit & Loss Account, report of the Board of Directors and Auditors of the subsisting subsidiaries have been attached with the Balance Sheet of the Company.
The consolidated financial statements, also from part of the Annual Report.
INTERNAL CONTROLS
The Company has an established system of internal controls to ensure that transactions were properly recorded, authorized and reported apart from safeguarding its assets. The internal control systems were supplemented by established policies, procedures and reviews carried out by its internal audit function, which submitted reports periodically to the management and the Audit Committee of the Board.
INFORMATION
TECHNOLOGY AND COMMUNICATION:
The Company continued to improve its IT enablement to achieve operational excellence in the business of the Company. The initiatives under taken during the year included, project for implementation of Shared Service, and Excellence Management system, implementation of Performance Management System, Security improvement systems.
The Company received the following awards in IT:
- Nasscom IT user award : Vedanta Aluminium received finalist award for 2009
- Best
IT Enabled large
- CIO 100 2009 “The Ingenious 100 – 2009” from IDG media group
- Best
CIO in Large
Jharsuguda
The Aluminum Smelter at Jharsuguda has taken all proactive measures for providing a safe work place to the employees, its associate partners and visitors. The initiatives taken during the year organizing safety meets for sharing good safety practices, conducting safety training programmes by National Safety Council, Safety training programme continuing with National Safety council OHSAS 18001: 2007, surveillance audit for the unit has been completed for renewal of certification.
Towards contributing to better environment, the process of filing of exhausted coal mines with fly ash generated by the Company is under progress. Various actions have been taken for implementation of measures for reuse and recycle of water with the objective of conserving resources.
SAFETY, HEALTH &
ENVIRONMENT
Lanjigarh
The Alumina Refinery at Lanjigarh has continuously strived to achieve best safety standards and Compliance of all environment norms. Towards this, Education and safety training is imparted to all employees including contract employees
Special drive has been taken for implementation of OHSAS 18001: 2007, Work safe online, work permit systems. The cumulative LTIF (Loss time injury frequency) rate during the year was zero.
The Alumina Refinery has adopted Zero discharge, 100% water recycling and has become the first Alumina refinery in the country to adopt Zero discharge. Electrostatic precipitators and online emission monitoring system are installed. Dry fog systems have been provided to control the fugitive emission in various material handling sections.
FIXED
ASSETS
- Leasehold land
- Plant and Machinery
- Office equipments
- Furniture and fittings
- Vehicles
HISTORY:
Subject
is a subsidiary of their Resources Plc, a London Stock Exchange listed, FTSE
100 Global Metals and Mining Group, having interests in aluminum, copper, zinc,
lead and recently, iron & steel. The group has operations in
Subject has set up a Greenfield Alumina
Refinery in Orissa with a capacity of 1 Million tons per annum. It is
also setting up a 0.5 MTPA Aluminum
Smelter, 1215 MW Captive Power
Plant. The Group Company Sterlite Energy Limited is also setting up a
2400 MW Independent Power Plants at Jharsuguda. Company is one of
the world’s premier alumina refining complex in terms of its technology, human
resources and high quality infrastructure. They has built a high caliber team
who are passionately contributing to the growth and efficiency of the
organization
Company Description:
Subject is a
Company is setting up Greenfield Aluminium Smelter of Global
capacity along with Captive Power Plant at Jharsuguda, Orissa with an
investment of Rs.95000.000 Millions.
Trade References :
- Fluidomat Limited, Devas
- Shreyansh Enterprises, Kolkata
- Gupta Power Infrastructure Limited
Form : 8
Bankers Charges
Report as per Registry
|
Name of the company |
Vedanta Alumina
Limited |
|
Presented By |
Mr. Vinay Gaokar
- Company Secretary |
|
1) Date and description of instrument creating the change |
Deed of
Hypothecation dated the 9th day of December 2004 executed by Vedanta Alumina Limited
(therein and hereinafter referred to as the “Borrower”) in favour of ICICI
Bank Limited (“IClCI”). |
|
2) Amount secured by the charge/amount owing on the securities of charge |
Secured working
capital facilities not exceeding Rs.3.00 billion. (Rupees Three billion only)
(the aforesaid working capital facilities as renewed / modified /amended from
time to time are hereinafter collectively referred to as “the Facilities”)
extended / granted to the Borrower. |
|
4) Gist of the terms and conditions and extent and operation of the charge. |
In consideration
of ICICI having granted / agreed to grant to the Borrower the Facilities,
agreement and declaration by the Borrower, inter alia, as follows: 1. Covenant by
the Borrower to comply / to ensure compliance with all the terms and
conditions set Out in the Letter of credit facility Agreement dated 4th
December,2004 entered between the Borrower and ICICI, as modified amended
/renewed /supplemented from time to time (hereinafter collectively referred
to as “the Agreement”). 2. The Borrower
shall pay/repay all amounts in respect of the Facilities and pay interest and
alt other monies in the manner set out in the Agreement and the other
Transaction Documents. 3.The Assets were
thereby hypothecated inter alia to ICICI as and by way of first and exclusive
charge, , as security for and be charged with the repayment of the
Facilities, alt interest and other monies payable by the Borrower to CICI as
specified in the Agreement and the other Transaction Documents. 4. The Borrower
to keep the Assets in marketable and good condition and also insured as
provided in the Deed of Hypothecation / the Agreement. 5. Power of
Entry, power to take charge and / or possession of, seize, recover, receive,
appoint receivers of and remove and / or sate by auction or private contract,
dispatch for realisation or otherwise dispose of or deal with all or any part
of the Assets etc. as provided in the Deed of Hypothecation. 6. All other
terms and conditions as contained in the Deed of Hypothecation. |
|
5) Name and Address and description of the person entitled to the charge. |
ICICI Bank
Limited, Bandra Kurla Complex, Bandra (East) Mumbai - 400 051 |
|
6) Date and brief description of instrument modifying the charge |
Not Applicable |
|
7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification. |
Not Applicable |
|
Corporate identity
number of the company |
U31300TN2001PLC069645 |
|
Name of the
company |
VEDANTA ALUMINIUM
LIMITED |
|
Address of the
registered office or of the principal place of business in |
SIPCOT Industrial
Complex, |
|
This form is for |
Creation of
charge |
|
Type of charge |
Book debts Movable property
(not being pledge) Floating charge Others |
|
Particular of
charge holder |
Yes Bank Limited,
9th Floor, Nehru Centre, Discovery Of India, Dr. Annie Besant Road, Worli,
Mumbai – 400018, Maharashtra, India |
|
Nature of
instrument creating charge |
Deed of
Hypothecation dated 7th September, 2010 |
|
Date of
instrument Creating the charge |
07/09/2010 |
|
Amount secured by
the charge |
Rs. 7500.000 |
|
Brief of the
principal terms an conditions and extent and operation of the charge |
Rate of interest : STL/CC/WCDL/BC/PBD/SBD/PBG/FBG:
To be decided at the time of drawdown. SLC/ULC: 0.25%
p.a. Terms of repayment : N.A. Margin : CC/WCDL: 25%
of(Book Debts<180 days+Stocks-Creditors) Extent and operation of the charge : Subservient
charge on all current and moveable fixed assets of the Company(as described in
Schedule of Deed of Hypothecation dt.7-September-2010). Other : Nil |
|
Short particulars
of the property charged (Including location of the property) |
Subservient
charge on all current and moveable fixed assets of the Company(as described
in Schedule of Deed of Hypothecation dt.7-September-2010). |
AS PER
WEBSITE
PROFILE:
CORPORATE OVERVIEW
Vedanta Aluminium Ltd (VAL) is an Associate Company of the
globally diversified, London Stock Exchange listed, FTSE 100 metals and mining group
Vedanta Resources PLC. Originally incorporated in 2001, VAL is a leading
producer of metallurgical grade alumina and other aluminium products, which
cater to a wide spectrum of industries.
VAL has carved out a niche for itself in the aluminium industry with its
superior product quality based on state-of-the-art technology. The firm
operates a 1 mtpa
VAL has invested in a 0.5 mtpa aluminum smelter and 1215 MW captive power plant
supported by highly modern infrastructure at Jharsuguda, Orissa. In addition to
this, layout approval for construction of 1.1 mtpa aluminium smelter expansion
project at Jharsuguda has been received. Jharsuguda is also the site of the
2400 MW independent power plant being set up by group company Sterlite Energy
Ltd to meet the growing demand for power from both urban and rural consumers.
The firm intends to expand the fully integrated aluminium smelting capacity to
around 2.6 mtpa in near future.
The idea of sustainable development is deeply ensconced in VAL’s business
ethos. VAL is committed to the socio-economic transformation of local
communities residing around the plant sites and undertakes several initiatives
to promote sustainable development. The firm has focused on developing modern
health amenities, educational facilities for children and skill development
programmes for adults. Several other programmes have been undertaken to enhance
health and sanitation, promote livelihood generation and improve infrastructure
in the villages surrounding Jharsuguda and Lanjigarh. The firm believes that
its development initiatives will encourage a dedicated team of self motivated
individuals to participate and drive the company’s growth in the future.
At Jharsuguda, it is also setting up an
Aluminium Smelter, a Captive Power Plant and an Independent Power Plant.
Jharsuguda is situated in the western part of Orissa on the State Highway
No-10, at a distance of 335 K.M. from
Jharsuguda
· 1.75 MTPA Aluminum Smelter.
· 5x135 MW Captive Power Plant.
· 4x600 MW Independent Power Plants.
· Rail infrastructure for Coal, Aluminum and finished product.
· A modern township under construction
History:
Vedanta Aluminium
Ltd (VAL) is a premier manufacturer of metallurgical grade alumina and other
high-quality aluminium products, which are used by a wide gamut of industries.
The company traces its origins to the early years of the current decade when
Vedanta Resources, the parent company, was increasingly diversifying its
operations and expanding its presence in the domestic and global aluminium
market. Driven by the endeavour to establish a subsidiary that would have a
significant presence in the domestic bauxite mining and exploration segment,
Sterlite Transmission Ltd was incorporated on 18th January 2001. Subsequently,
the name of the company was changed to Vedanta Alumina Ltd on 20th January,
2004 in an effort to rebrand the firm in consonance with its operations and
then renamed as Vedanta Aluminium Ltd on 25th August, 2007. This heralded the
beginning of the firm’s journey towards operational excellence based on
technological advancements coupled with a keen focus on sustainable
development.
In 2007, VAL began the progressive commissioning of its 1 mtpa state-of-the-art
The
Apart from earning accolades for its superior products, VAL’s sustainable development
initiatives have also received widespread recognition. The company strives to
facilitate the socio-economic transformation of local communities around
Jharsuguda and Lanjigarh through concerted efforts in the spheres of health,
education, livelihood, infrastructure and environment.
VAL’s development initiatives have touched the lives of local communities
through active partnerships with various stakeholders. The firm remains
committed to the development of rural areas in
BUSINESS OVERVIEW
Vedanta Aluminium
Ltd. (VAL), a subsidiary of global mining behemoth Vedanta Resources PLC,
leverages its strategic location and cutting edge technology to deliver world
class products. Operative in Orissa, which has huge bauxite and coal reserves,
VAL leverages its accessibility to cheap, skilled labour and vast captive
mineral resources to work out a favourably low production cost structure. This
is in line with Vedanta Resources’ objective of claiming a position in the top
decile of global low cost aluminium producers. VAL’s diversified and de-risked
project development strategy and its fully integrated operational structure,
which includes mining to smelting/refining and power generation, equips it to
meet the growing global and domestic demand for aluminium.
Global and Domestic Markets
VAL is positioned to make a significant contribution to global
aluminium demand, which is expected to increase substantially over the next few
years. The rapid growth of the emerging nations led by China and India and the
concomitant growth in aluminium demand in these countries is expected to
benefit VAL. Aluminium consumption in BRIC nations alone is expected to
increase at a CAGR of 9% over the period 2007-2020 while global aluminium
consumption is anticipated to more than double from 38 mt to 78.5 mt over the
same period.
Power sector coupled with rising consumerism have driven growth in
industries such as packaging and consumer durables. VAL, with its superior
product portfolio, is competitively positioned to take a lead in catering to
these industries. Proximity to high growth markets of Asia and
The
Orissa
VAL is located in
the heart Orissa, which has abundant mineral reserves including bauxite and
coal. The state has as much as 1.7 billion tonnes of the country’s total 3.3
billion tonnes of bauxite reserves. The optimal location of VAL affords an easy
reach to recoverable bauxite deposits of over 900 mt within 60 km radius of
Lanjigarh, the location of its
VAL-
Uniquely Positioned to Deliver
With a highly
qualified and technologically advanced research and development wing, VAL has
acquired comprehensive expertise at producing high quality products. Supported by
state of art facilities, competitive intelligence and resource utilisation, VAL
takes pride in an unparalleled track record of project delivery and
implementation. The firm benefits from teams with proven project handling
expertise which hugely reduces risk of execution. This ensures strict adherence
to international time and cost benchmarks, which raises VAL above competitors.
The experienced in-house project management teams have implemented the 1.0 mtpa
Lanjigarh alumina refinery and the associated 75 MW captive power plant. They
are currently in the process of completing the first phase of the 0.5 mtpa
Projects
and Products
VAL is making huge investments to expand capacities of existing plants
in order to address growing industry demand. Expansion of the Jharsuguda
aluminium smelter plays a pivotal role in VAL’s growth strategy. The firm is
having plans to start construction of a new 1.1 mtpa aluminium smelter at Jharsuguda
which would expand smelting capacity from 0.5 mtpa to 1.6 mtpa in near future.
For this, VAL has channelised funds towards the commissioning of additional
units of power.
The proposed increase in alumina production at Lanjigarh will boost output from
1.0 mtpa to 5 mtpa shortly. The increase in alumina production capacity will be
achieved by debottlenecking existing capacity and building three new production
streams of 1 MTPA each.
Responding to the global demand pattern for aluminium, VAL has recently
diversified its product portfolio to cater to a wide range of industrial
sectors. VAL specialised in manufacturing aluminium ingots until 2008-09. The
firm has now extended
Projects overview
In keeping with its objective to establish itself as a global player in
the aluminium industry, Vedanta Aluminum Ltd. (VAL) has invested heavily in
expanding its existing refining and smelting capacities. The firm is a leading
supplier of high quality metallurgical grade alumina and aluminium products to
a wide spectrum of industries and intends to enhance its domestic and global
footprints through a carefully coordinated expansion strategy.
VAL has invested in a
VAL operates a
Operations
– overview
Vedanta Aluminium
Ltd. (VAL) is renowned for its superior metallurgical grade alumina and other
high quality aluminium products. VAL operates a world class
To
produce Aluminium products from Bauxite, the following 4 processes are
necessary
Mining – To extract raw Bauxite from the earth
Refining – To refine raw Bauxite into Alumina
powder
Smelting – To convert Alumina into liquid
Aluminium
Casting – To produce Ingots, Wire-rods and
Billets from liquid Aluminium
Products Overview
A leading manufacturer of
aluminium products in India, Vedanta Aluminium Ltd (VAL) leverages its
cutting-edge technology to deliver a range of products to a wide spectrum of
industries. As a major producer of metallurgical grade alumina, which is a key
raw material in industries such as ceramics and glass, VAL strives to adhere to
stringent quality standards and maximize customer satisfaction. It also
produces high grade aluminium and various other products such as billets and
ingots, which are supplied to secondary fabrication units.
VAL manufactures a diverse range of products under the brand name “VEDANTAL”.
The company is committed to steep purity standards of 99.8% and non-negotiable
quality adherence. It adds value to numerous industry segments that require
aluminium in both primary as well as secondary stages of production.
A wide array of VEDANTAL products is of prime utility in industrial sectors
like power, packaging, chemical, logistics, and defence. Different product
offerings include aluminium ingots, billets and bars used for making buses.
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. 45.58 |
|
|
1 |
Rs. 72.73 |
|
Euro |
1 |
Rs. 61.45 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
4 |
|
PAID-UP CAPITAL |
1~10 |
4 |
|
OPERATING SCALE |
1~10 |
3 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
3 |
|
--PROFITABILIRY |
1~10 |
3 |
|
--LIQUIDITY |
1~10 |
3 |
|
--LEVERAGE |
1~10 |
3 |
|
--RESERVES |
1~10 |
3 |
|
--CREDIT LINES |
1~10 |
3 |
|
--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 |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
29 |
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.