MIRA
INFORM REPORT
|
Report Date : |
12.05.2011 |
IDENTIFICATION DETAILS
|
Name : |
SESA GOA LIMITED |
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Registered
Office : |
Sesa Ghoar 20 EDC Complex Patto, Panjim – 403001, |
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Country : |
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Financials (as
on) : |
31.03.2010 |
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Date of
Incorporation : |
25.06.1965 |
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Com. Reg. No.: |
24-000044 |
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Paid-up Capital
: |
Rs. |
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CIN No.: [Company Identification
No.] |
L13209GA1965PLC000044 |
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Legal Form : |
A Public Limited Liability company. The company’s Share are Listed on
the Stock Exchange. |
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Line of Business
: |
Producer
and Exporter of |
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No. of Employees
: |
Information not divulged by management |
RATING & COMMENTS
|
MIRA’s Rating : |
Aa (76) |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit transaction.
It has above average (strong) capability for payment of interest and
principal sums |
Large |
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Maximum Credit Limit : |
USD 280000000 |
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Status : |
Excellent |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a well established and reputed company having good track.
Available information indicates high financial responsibility of the company.
Trade relations are reported as fair. Business is active. Payments are reported
to be regular and as per commitments. The company can be considered good for any business dealings at usual
trade terms and conditions. The company can be regarded as a promising
business partner in a medium to long run. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
INFORMATION DENIED BY
|
Name : |
Mr. S. Suresh |
|
Designation : |
General Manager – Finance |
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Contact No.: |
91-834-2460600 |
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Date : |
10.05.2011 |
LOCATIONS
|
Registered Office : |
Sesa Ghoar 20 EDC Complex Patto, Panjim – 403001, |
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Tel. No.: |
91-832-2460600 |
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E-Mail : |
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Website : |
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Factory 1 : |
Mining
establishments at |
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Factory 2 : |
Metallurgical
Coke (Met Coke) Division at Amona, |
DIRECTORS
As On 31.03.2010
|
Name : |
Mr. Prasun K Mukherjee |
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Designation : |
Managing Director |
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Date of Birth/Age : |
54 Years |
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Qualification : |
B.Com (Hons.) F.C.A., A.I.C.W.A. |
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Experience : |
30 Years |
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Date of Appointment : |
14.04.1987 |
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Last Employment : |
Ceat Tyres of India Limited, |
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Name : |
Mr. Sushil Gupta |
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Designation : |
Director – Finance |
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Name : |
Mr. Ashok Kini |
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Designation : |
Director |
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Name : |
Mr. Pandurang G. Kakodkar
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Designation : |
Director |
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Name : |
Mr. Kuldip K. Kaura |
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Designation : |
Director |
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Name : |
Mr. Gurudas D. Kamat |
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Designation : |
Director |
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Name : |
Mr Jagdish P Singh |
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Designation : |
Director |
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Name : |
Mr. Amit Pradhan |
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Designation : |
Whole Time Director Director - Iron and Coke |
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Date of Birth/Age : |
55 Years |
|
Qualification : |
M.Sc.(Physics) |
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Experience : |
32 Years |
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Date of Appointment : |
15.01.1990 |
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Last Employment : |
Sesa Industries Limited, |
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Name : |
Mr. Rai A.K. |
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Designation : |
Wholetime Director |
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Date of Birth/Age : |
58 Years |
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Qualification : |
B.Sc. Mining Engg. 1st class Mine Manager Certificate |
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Experience : |
34 Years |
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Date of Appointment : |
14.04.1975 |
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Last Employment : |
Pig Iron Plant Sesa Industries Limited, |
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Name : |
Mr. Phal M.D. |
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Designation : |
Wholetime Director |
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Date of Birth/Age : |
60 Years |
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Qualification : |
B.A.(Econ.) M.A. Personnel Management and Industrial Relations |
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Experience : |
34 Years |
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Date of Appointment : |
03.05.1990 |
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Last Employment : |
Sesa Industries Limited, |
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Name : |
Mr. Nair H.P.U.K. |
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Designation : |
Wholetime Director |
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Date of Birth/Age : |
60 Years |
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Qualification : |
B.Tech Metallurgy |
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Experience : |
37 years |
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Date of Appointment : |
01.03.1995 |
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Last Employment : |
Sesa Kembla Coke Co. Limited, |
KEY EXECUTIVES
|
Name : |
Joshi A.N. |
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Designation : |
Chief Marketing Officer |
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Date of Birth/Age : |
55 Years |
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Qualification : |
B.Tech (Mining Engg.) 1st Class Mine Manager’s Certificate |
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Experience : |
32 Years |
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Date of Appointment : |
03.07.1993 |
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Last Employment : |
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Name : |
Afonso Lalita C. |
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Designation : |
Chief Financial Officer |
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Date of Birth/Age : |
47 Years |
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Qualification : |
B.Com F.C.A. |
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Experience : |
23 Years |
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Date of Appointment : |
01.06.1990 |
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Last Employment : |
Wimco Limited |
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Name : |
Chitnis C.D. |
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Designation : |
Co.Sec and GM Legal |
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Date of Birth/Age : |
54 Years |
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Qualification : |
B.Com L.L.B., F.C.S. |
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Experience : |
28 Years |
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Date of Appointment : |
15.02.1994 |
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Last Employment : |
Herdilia Chemicals Limited, Mumbai |
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Name : |
Lotlikar U.D. |
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Designation : |
GM – IT |
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Date of Birth/Age : |
56 Years |
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Qualification : |
B.Com A.C.A. |
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Experience : |
29 Years |
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Date of Appointment : |
04.01.1999 |
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Last Employment : |
Phil Corporation Limited, |
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|
|
Name : |
Krishnagopal Rajanala |
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Designation : |
GM – HR |
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Date of Birth/Age : |
39 Years |
|
Qualification : |
B.Sc. M B A Marketing |
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Experience : |
16 Years |
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Date of Appointment : |
01.11.1999 |
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Last Employment : |
SAIL Bokaro Steel Plant, |
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|
Name : |
Patil M.K. |
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Designation : |
GM – HSEC |
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Date of Birth/Age : |
46 Years |
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Qualification : |
M.Sc.(Agriculture) |
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Experience : |
21 Years |
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Date of Appointment : |
15.04.1991 |
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Last Employment : |
Zuari Agro Chemicals Limited, |
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Name : |
Garudanagiri Y.S. |
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Designation : |
GM – Engg.Services and projects |
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Date of Birth/Age : |
53 Years |
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Qualification : |
Operations Research Machine Tool Tech. SQC |
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Experience : |
30 Years |
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Date of Appointment : |
31.07.1995 |
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Last Employment : |
VISL Bhadravati |
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|
Name : |
Kamath G.P. |
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Designation : |
BM – Metcoke |
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Date of Birth/Age : |
57 Years |
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Qualification : |
B E M.Tech |
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Experience : |
33 Years |
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Date of Appointment : |
03.05.1996 |
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Last Employment : |
SAIL Bokaro Steel Plant, |
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Name : |
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Designation : |
Head – Business Development |
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Date of Birth/Age : |
51 Years |
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Qualification : |
B.Tech (Mining) 1st Class Manager’s Certificate of Competancy |
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Experience : |
29 Years |
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Date of Appointment : |
03.06.2002 |
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Last Employment : |
khondbond Iron Mine Jharkhand |
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Name : |
Larry Joseph Giegerich |
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Designation : |
Head – Mining Operations |
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Date of Birth/Age : |
46 Years |
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Qualification : |
B.Sc. Mining Engineering |
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Experience : |
21 Years |
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Date of Appointment : |
25.02.2008 |
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Last Employment : |
European Minerals Corporation, Khazakhstan |
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Name : |
Robin Michael Vivian |
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Designation : |
Head – Mining Exploration |
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Date of Birth/Age : |
59 Years |
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Qualification : |
B.Sc. Mining Engineering |
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Experience : |
33 Years |
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Date of Appointment : |
25.02.2008 |
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Last Employment : |
Territory Resources Limited, |
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Name : |
Tilve |
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Designation : |
BM – Mining ( |
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Date of Birth/Age : |
60 Years |
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Qualification : |
M.Sc. (Geology) |
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Experience : |
36 Years |
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Date of Appointment : |
22.08.1977 |
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Last Employment : |
MRF |
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Name : |
Dessai A.B. |
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Designation : |
GM – Shipping |
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Date of Birth/Age : |
60 Years |
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Qualification : |
Marine Engineering |
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Experience : |
35 Years |
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Date of Appointment : |
08.11.2004 |
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Last Employment : |
Costal Marine Mumbai |
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|
Name : |
Patnaik Tapan |
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Designation : |
BM – Mining Eastern Region |
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Date of Birth/Age : |
53 Years |
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Qualification : |
B.Sc. Engg (Met) |
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Experience : |
30 Years |
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Date of Appointment : |
20.09.1990 |
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Last Employment : |
Pig Iron Plant Sesa Industries Limited, |
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|
Name : |
C. D. Chitnis |
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Designation : |
Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As On 31.03.2011
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding of Promoter and Promoter Group |
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|
479,113,619 |
55.13 |
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|
479,113,619 |
55.13 |
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Total shareholding of Promoter and Promoter Group (A) |
479,113,619 |
55.13 |
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(B) Public Shareholding |
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|
|
|
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|
9,207,538 |
1.06 |
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|
13,908,637 |
1.60 |
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|
18,240,640 |
2.10 |
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|
207,928,162 |
23.92 |
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|
249,284,977 |
28.68 |
|
|
|
|
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|
27,747,036 |
3.19 |
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|
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|
104,226,852 |
11.99 |
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|
4,406,628 |
0.51 |
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4,322,311 |
0.50 |
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2,120,400 |
0.24 |
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|
763,208 |
0.09 |
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|
1,417,072 |
0.16 |
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|
21,631 |
- |
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|
140,702,827 |
16.19 |
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Total Public shareholding (B) |
389,987,804 |
44.87 |
|
Total (A)+(B) |
869,101,423 |
100.00 |
|
(C) Shares held by Custodians and against which Depository Receipts
have been issued |
- |
- |
|
|
- |
- |
|
|
- |
- |
|
|
- |
- |
|
Total (A)+(B)+(C) |
869,101,423 |
- |
(1) Indian
Bodies Corporate
Individual shareholders holding nominal share
capital up to Rs. 0.100 millionBUSINESS DETAILS
|
Line of Business : |
Producer
and Exporter of |
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Products : |
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GENERAL INFORMATION
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No. of Employees : |
Information not divulged by management |
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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 : |
Deloitte Haskins and Sells Chartered Accountant |
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Address : |
Mumbai, |
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Holding Company : |
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Ultimate Holding Company : |
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Fellow Subsidiaries : |
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Jointly Controlled Entity : |
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Group Companies : |
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CAPITAL STRUCTURE
As On 31.03.2010
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
1000000000 |
Equity Shares |
Rs. 1/- each |
Rs. 1000.000 Millions |
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Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
830961802 |
Equity Shares |
Rs. 1/- each |
Rs. 831.000
Millions |
|
|
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|
Out of the above
Shares:
401,496,480 (Previous Year 401,496,480) Shares are held by
Finsider International Co. Limited
39,098,139 (Previous Year 1,429,020) shares held by West Globe Limited Mauritius a subsidiary of Vedanta Resources plc.
1,925,000 Shares of Rs.10 each were alloted as fully paid-up shares pursuant to a contract without payment being received in cash, consequent to amalgamation of erstwhile Mingoa Private Limited, with the Company with effect from 1-4-1979.
29,156,910 bonus shares of Rs. 10 each and 393,620,200 bonus shares of Re. 1 each were allotted pursuant to capitalisation of reserves and Share Premium Account.
33,274,000 equity shares of Re. 1 each were allotted as fully paid up shares on a preferential basis to Twinstar Holdings Limited, a subsidiary of Vedanta Resources Plc.
10,447,402 equity shares of Re. 1 each were allotted as
fully paid up on conversion of 755 Foreign Currency Convertible Bonds during
the year.
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 |
831.000 |
787.200 |
393.600 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
71256.100 |
44390.600 |
27517.700 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
72087.100 |
45177.800 |
27911.300 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
96.100 |
19.100 |
0.000 |
|
|
2] Unsecured Loans |
19161.900 |
0.000 |
0.000 |
|
|
TOTAL BORROWING |
19258.000 |
19.100 |
0.000 |
|
|
DEFERRED TAX LIABILITIES |
592.000 |
525.300 |
535.000 |
|
|
|
|
|
|
|
|
TOTAL |
91937.100 |
45722.200 |
28446.300 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
5121.500 |
4580.000 |
3980.900 |
|
|
Capital work-in-progress |
680.100 |
481.900 |
158.500 |
|
|
|
|
|
|
|
|
INVESTMENT |
54786.400 |
30196.800 |
20004.400 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
4086.600
|
2317.000 |
2635.200 |
|
|
Sundry Debtors |
2784.600
|
2567.300 |
4430.700 |
|
|
Cash & Bank Balances |
23774.100
|
121.700 |
131.600 |
|
|
Other Current Assets |
392.700
|
0.000 |
0.000 |
|
|
Loans & Advances |
11111.900
|
10990.000 |
503.500 |
|
Total
Current Assets |
42149.900
|
15996.000 |
7701.000 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
5959.300 |
2859.200 |
1361.000 |
|
|
Other Current Liabilities |
1091.200
|
280.100 |
264.000 |
|
|
Provisions |
3750.300
|
2393.200 |
1773.500 |
|
Total
Current Liabilities |
10800.800
|
5532.500 |
3398.500 |
|
|
Net Current Assets |
31349.100
|
10463.500 |
4302.500 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
91937.100 |
45722.200 |
28446.300 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
45947.800 |
47471.200 |
35516.100 |
|
|
|
Hire of ship and transhipper |
75.500 |
77.600 |
0.000 |
|
|
|
Services and other proceeds |
580.000 |
242.000 |
505.500 |
|
|
|
Miscellaneous income |
4094.500 |
2171.500 |
702.500 |
|
|
|
TOTAL (A) |
50697.800 |
49962.300 |
36724.100 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Production and operational expenses |
22267.500 |
22622.500 |
13580.300 |
|
|
|
Administration expenses |
738.700 |
558.000 |
333.500 |
|
|
|
TOTAL (B) |
23006.200 |
23180.500 |
13913.800 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
27691.600 |
26781.800 |
22810.300 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
536.900 |
33.800 |
15.100 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
27154.700 |
26748.000 |
22795.200 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
573.800 |
441.000 |
425.800 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
26580.900 |
26307.000 |
22369.400 |
|
|
|
|
|
|
|
|
|
Less |
TAX (I) |
5400.000 |
6882.100 |
7449.400 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-I) (J) |
21180.900 |
19424.900 |
14920.000 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
955.700 |
603.100 |
505.400 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
General Reserve |
16000.000 |
17000.000 |
12750.000 |
|
|
|
Proposed Dividend |
2700.600 |
1771.300 |
1180.900 |
|
|
|
Dividend Tax |
459.000 |
301.000 |
301.000 |
|
|
|
Interim Dividend |
0.000 |
0.000 |
590.400 |
|
|
BALANCE CARRIED
TO THE B/S |
2977.000 |
955.700 |
603.100 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export Earnings |
40277.700 |
40776.900 |
28511.800 |
|
|
|
Dispatch money |
87.300 |
53.800 |
17.800 |
|
|
TOTAL EARNINGS |
40365.000 |
40830.700 |
28529.600 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
3437.800 |
1518.500 |
1734.200 |
|
|
|
Components and spare parts |
141.100 |
148.000 |
136.100 |
|
|
|
Capital Goods |
98.200 |
148.200 |
199.000 |
|
|
TOTAL IMPORTS |
3677.100 |
1814.700 |
2069.300 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
|
|
|
|
|
|
- Basic |
26.11 |
24.68 |
18.95 |
|
|
|
- Diluted |
25.31 |
24.68 |
18.95 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2010 |
30.09.2010 |
31.12.2010 |
31.03.2011 |
|
Type |
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
4th
Quarter |
|
Net Sales |
19173.600 |
8144.000 |
16966.800 |
30820.200 |
|
Total Expenditure |
8636.400 |
5561.000 |
7900.000 |
13349.500 |
|
PBIDT (Excl OI) |
10537.200 |
2583.000 |
9066.800 |
17470.700 |
|
Other Income |
1506.300 |
1287.500 |
1157.700 |
1621.800 |
|
Operating Profit |
12043.500 |
3870.500 |
10224.500 |
19092.500 |
|
Interest |
135.700 |
138.300 |
131.700 |
136.000 |
|
PBDT |
11907.800 |
3732.200 |
10092.800 |
18956.500 |
|
Depreciation |
142.700 |
142.300 |
153.600 |
392.700 |
|
Profit Before Tax |
11765.100 |
3589.900 |
9939.200 |
18563.800 |
|
Tax |
1510.000 |
60.000 |
1500.000 |
6460.000 |
|
Profit After Tax |
10255.100 |
3529.900 |
8439.200 |
12103.800 |
|
Net Profit |
10255.100 |
3529.900 |
8439.200 |
12103.800 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
PAT / Total Income |
(%) |
41.78
|
38.88 |
40.63 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
57.85
|
55.42 |
62.98 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
56.23
|
127.85 |
191.49 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.37
|
0.58 |
0.08 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
0.42
|
0.12 |
0.12 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
3.90
|
2.89 |
2.27 |
LOCAL AGENCY FURTHER INFORMATION
The details of
sundry creditors:
Rs.
In Millions
|
Particulars |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
Sundry Creditors |
|
|
|
|
- Due to micro and small enterprises |
4.000 |
0.100 |
1.800 |
|
- Due to others |
5955.300 |
2859.100 |
1359.200 |
|
Total |
5959.300 |
2859.200 |
1361.000 |
Financial Results:
In accordance with the requirements of the Listing Agreement, a
consolidated Financial Statement of the Company is included in this Annual
Report. The consolidated profit after tax for the group for the year ended
31.03.2010 is Rs. 26390.400 millions as against Rs. 19948.900 millions for the
previous year. The earnings per share of Re. 1 each (excluding minority
interest) works out to be Rs. 31.62 as against Rs. 25.26 for the previous year.
Acquisition
In June 2009, through a definitive Share Purchase Agreement, Sesa Goa
acquired all the outstanding common shares of VS Dempo and Co. Private Limited
(“VSD”), which in turn, also holds 100% equity shares of Dempo Mining
Corporation Private Limited and 50% equity shares of Goa Maritime Private
Limited for a total consideration of Rs. 17500.000 millions (based on normative
working capital) on debt-free and cash-free basis. The working capital on the
acquisition date, thereafter, was determined and audited, and accordingly the
final consideration amounted to Rs. 17130.000 millionss. The transaction was
funded by Sesa Goa from its existing cash resources. At the time of acquisition
it was estimated that VSD owned or had the rights to mineable reserves and
resources of 70 million tonnes of iron ore in
Operations:
Sesa Goa confronted difficult market conditions in the first two
quarters. With rising Chinese imports, demand started picking up from Q3 of,
2009-10. And in Q4 of 2009-10, the Company recorded all time high sales and
production. With this rally in the second half, annual sales volumes increased
by 12% from 15.1 million tonnes in 2008-09 to 16.9 million tonnes in 2009-10.
While high levels of price remained below what was attained in the pre-economic
slowdown days, sales realisation also increased steadily over the course of
2009-10. The combination of sales volumes and improved realisation helped
propel Sesa Goa’s performance in 2009-10.
On the cost front, there were some external developments that adversely
affected Sesa Goa’s operations. During Q2, 2009-10, the Government of India
(GoI) changed the basis of royalty-charges on iron ore to ad-valorem (10%)
basis from specific rates being levied earlier. This change in royalty was
effective from 13.08.2009. Also, in December 2009, the export duty for iron ore
lumps was increased from 5% to 10% along with the re introduction of export
duty on iron ore fines by 5%. Despite, these adversities increasing the
Company’s cost base, Sesa Goa increased its profits in 2009-10 as compared to
2008-09. This was achieved through higher sales volume, better price
realisation and productivity improvements. With 83% share
Exploration Success:
While production is important, Sesa Goa lays great emphasis on
developing assets. With this objective, The Company is focused on adding more
iron ore resources through its exploration activities. During 2009-10, there
were 9 drilling rigs deployed across leases in
Expansion Project:
During Q2, 2009-10, Sesa Goa announced setting up of new integrated
project to increase the pig iron production capacity by 0.375 million tonnes
per annum (mtpa) by setting up a new blast furnace of 450 cubic metres working
volume. The Company also announced the setting up of a new sinter plant of 75
square metres, a new non recovery coke plant of 0.280 mtpa based on its own
patented coke-making technology. A 30 MW power plant utilising the waste heat
from the new coke plant and excess blast furnace gas from the new blast furnace
facilities is also coming up. Post commissioning of the new projects, Sesa will
be the only producer/manufacturer of pig iron in the secondary sector in
Total investment in these projects is estimated at Rs.6050.000 millions
(equivalent to US$125 million). This will be funded through a combination of
debt and internal accruals. The project, expected to be completed by Q1,
2011-12 is being executed as per schedule.
Outlook:
While there are some positive signs with
Subsidiary Companies:
Operations of Sesa Industries Limited (SIL) have resulted in a net
profit of Rs. 843.0000 millions in 2009-10, as against Rs. 576.700 millions for
the previous year. Production was at record high of 0.280 million tones as
against 0.217 million tonnes for the previous year and sales at 0.279 million
tonnes as against 0.224 million tonnes. The operations of Dempo’s have resulted
in a net profit of Rs. 4930.000 millions in 2009-10. The increase in profitability
was mainly driven by higher operational efficiencies and increased iron ore
prices. Saleable iron ore production and sales during the attributable period
of post 11.06.2009 in 2009-10 was at 3.600 million tonnes and 3.647 million
tonnes respectively. Pursuant to the Accounting Standards AS-21 issued by the
Institute of Chartered Accountants of India, the consolidated financial
statements presented by the Company includes financial information of its
subsidiaries. The Company has made an application to the Government of India
seeking exemption under Section 212(8) of the Companies Act, 1956, from
attaching/including the balance sheet, profit and loss account and other
documents of the subsidiary companies to the Annual Accounts and Annual Reports
of the Company. The Company will make available these documents/details upon
request by any member of the Company, if the same application is granted.
Awards:
The Company was awarded with the following prestigious awards during the
year:
– Subject – Reclaimed Sanquelim Mine was awarded the “Certificate of
Appreciation for Plantation Management” by Confederation of Indian Industry
(CII) during 6th CII Western Region Safety, Health and Environment (CII WR
SHE).
– At the ANML – MEMCA week held in January 2010, the Company secured the
following awards: Afforestation – 1st Prize; Waste Dump Management – 1st Prize;
Top Soil Management – 2nd Prize; Systematic Development, Reclamation and
Rehabilitation – 2nd Prize; Management of Sub Grade Minerals – 2nd
Prize; Installation and use of Mechanical Beneficiation Plant – 2nd Prize;
Publicity and Propaganda – 1st Prize. Apart from these Sesa Goa secured the
first prize for overall performance.
– Sesa Goa’s Met Coke Division won the International Safety Award for
2009 by British Safety Council.
– During the 47th National Maritime Celebration, Sesa Goa was adjusted
as the best Barge operator in
– Sesa Goa won the overall first prize for Corporate Social
Responsibility (CSR) during the 7th National conference on Occupational Safety,
Health and Environment, organized by Inspectorate of Factories and Boilers,
Govt. of Goa, held in February 2010
Contingent
liabilities:
i) Guarantees (excluding the liability for which provisions have been
made) amounting to Rs. 90.400 millions (Previous year Rs. 133.100 millions)
given by the Bankers in favour of various parties – none invoked.
ii) Letters of Credit opened by the banks in favour of suppliers
amounting to Rs. 1745.200 millions (Previous year Rs. 626.300 millions).
iii) Bonds executed in favour of customs authorities in respect of
export of iron ore Rs. 10032.300 millions (Previous year Rs. 12819.700
millions).
iv) Claims by custom authorities (under dispute) relating to
differential export duty on export shipments Rs. 491.300 millions (Previous
year Rs. 491.300 millions). The said amount is also included under bonds
executed detailed in point 6 (iii) above.
v) Bills discounted under letters of credit with banks Rs. 4710.800
millions. (Previous year Rs. 2696.800 millions)
vi) Provisions have also not been made in the accounts in respect of the
following liabilities not acknowledged as debts for the reasons stated against
them:
a) Dead rent on deemed mining leases for the period from 20.12.1962 to 23.05.1987
amounting to Rs. 1.000 million (Previous year Rs. 1.000 million) and royalty
for the period from 20.12.1961 to 30.09.1963 amounting to Rs. 1.200 million
(Previous year Rs. 1.200 million) sought to be levied by the Government
pursuant to the Goa, Daman and Diu Mining Concessions (Abolition and
Declaration as Mining Leases) Act 1987, challenged by Special Leave Petition
before Supreme Court of India.
b) Claims related to commercial and employment contracts Rs. 70.600
millions (Previous year Rs. 60.800 millions.)
c) Claims by Chennai Port Trust related to shortfall of throughput from
Chennai Port Rs. 11.300 millions (previous year Rs. 11.300 millions).
d) A civil suit claiming a damage of a minimum amount of Rs. 375.000
millions (Previous year Rs. 375.000 millions) towards infringement of patent
has been filed against the Company.
e) Disputed sales tax demand of Rs. 4.500 millions (Previous year
Rs.9.800 millions) including interest and penalty of Rs. 0.900 million
(Previous year Rs. 1.400 million) appealed before Appellate Authority.
f) Disputed income tax demand of Rs. 92.400 millions (Previous year Rs.
38.500 millions) including interest of Rs. 5.600 millions (Previous year
including interest and penalty of Rs. 0.100 million), appealed before Appellate
Authority.
g) Disputed demand from customs authorities towards fine and penalty of
Rs. 3.500 millions (previous year Rs. 3.500 millions) for improper
documentation of equipments loaded/unloaded to/from the company’s vessel M.V.
Orissa and its improper use.
h) Disputed forest development tax amounting to Rs. 1641.200 millions
(Previous year Rs. 298.800 millions) levied by Government of Karnataka
challenged by writ petition filed in the High Court of Karnataka. Hearing of
writ petition before the High Court of Karnataka is pending.
i) A Notice issued by the Deputy Conservator of
j) Cess on transportation of Ore, coal and coke within Goa levied by
Government of Goa under the Goa Rural Development and Welfare Cess Act, 2000
(Goa Act 29 of 2000) amounting to Rs. 493.100 millions (Previous year Rs.
211.700 millions) challenged by way of writ petition in the High Court of
Bombay, Panjim Bench.
k) Claim for non performance of contract of affreightment amounting to
Rs. 37.400 millions (Previous year Rs. 127.400 millions) under arbitration.
The Company does not expect devolvement of any liability in respect of
the above.
AUDITED FINANCIAL
RESULTS FOR THE YEAR ENDED 31.03.2011 (STANDALONE)
Rs. In Millions
|
Particulars |
Quarter ended 31.03.2011 (Unaudited) |
Year Ended 31.03.2010 (Unaudited) |
|
Sales / Income from Operations |
33885.800 |
82495.900 |
|
Less: Excise Duty |
636.500 |
636.500 |
|
Less: Ocean freight |
2599.600 |
7384.900 |
|
Other Operating Income |
170.500 |
630.100 |
|
Total Income |
30820.200 |
75104.600 |
|
Expenditure |
|
|
|
(a) (Increase)/decrease in Stock in Trade and work in progress |
1507.400 |
(121.300) |
|
(b) Consumption of Raw Materials |
1403.100 |
3973.500 |
|
(c) Consumption of stores |
763.500 |
2445.800 |
|
(d) Contractors for inland transportation and other services |
|
|
|
- Inland transportation |
1637.000 |
6988.100 |
|
- Other services |
1664.700 |
3992.100 |
|
e) Purchase of ore |
1393.600 |
5363.900 |
|
f) Export duty |
2866.000 |
5160.500 |
|
g) Exchange loss/(gain) on Foreign Currency Convertible
Bonds |
(34.700) |
487.800 |
|
h) Employees cost |
601.900 |
1490.800 |
|
i) Depreciation |
392.700 |
831.300 |
|
j) Other expenditure |
1545.000 |
5516.400 |
|
k) Less: Costs / expenses recovered |
(32.700) |
(273.400) |
|
Total Expenditure |
13707.500 |
35855.500 |
|
Profit From Operations before other Income & Interest |
17112.700 |
39249.100 |
|
Other Income |
1587.100 |
4978.200 |
|
Profit before Interest and Tax |
18699.800 |
44227.300 |
|
Interest |
136.000 |
369.300 |
|
Profit From Ordinary
activities before Tax |
18563.800 |
43858.000 |
|
Tax expense comprises, current, deferred and MAT Credit |
6460.000 |
9530.000 |
|
Profit After Tax |
12103.800 |
34328.000 |
|
Minority Interest |
-- |
-- |
|
Net Profit for the Group |
12103.800 |
34328.000 |
|
Paid Up Equity Share Capital ( Face Value of the share Rs.1/- each ) |
869.100 |
869.100 |
|
Reserves (Excluding Revaluation Reserves) |
-- |
115019.000 |
|
Earning Per Share
(Rs.) (Non Annualised)* |
|
|
|
-Basic |
14.10 |
39.98 |
|
-Diluted |
13.67 |
39.30 |
|
Aggregate of Public Share Holding |
|
|
|
- Number of Shares |
389987804 |
389987804 |
|
- Percentage of shareholding |
44.87 |
44.87 |
|
Promoters and Promoter group share holding |
|
|
|
a) Pledged / Encumbered |
|
|
|
- Number of Shares |
-- |
-- |
|
- Percentage of share (as a % of the total shareholding of promoter and promoter group) |
-- |
-- |
|
- Percentage of shares(as a % of the total share capital of the company) |
-- |
-- |
|
b) Non-encumbered |
|
|
|
- Number of Shares |
479113619 |
479113619 |
|
- Percentage of Share (as a % of the total shareholding of promoter and promoter group) |
100 |
100 |
|
- Percentage of Share (as a % of the total share capital of the company) |
55.13 |
55.13 |
|
Segment Information |
Quarter ended 31.03.2011 (Unaudited) |
Year Ended 31.03.2010 (Unaudited) |
|
Segment Revenues |
|
|
|
Iron ore |
27306.100 |
67921.000 |
|
Metallurgical coke |
1370.400 |
5065.100 |
|
Pig iron |
6742.000 |
6742.000 |
|
Total |
35418.500 |
79728.100 |
|
Less: Inter-segment revenues |
|
|
|
Iron ore |
1045.000 |
1045.000 |
|
Metallurgical coke |
3547.800 |
3547.800 |
|
Pig iron |
0.400 |
0.400 |
|
Total |
4593.200 |
4593.200 |
|
Net Revenue from Operations |
30825.300 |
75134.900 |
|
Add: Interest, dividend and other unallocable income |
1582.000 |
4947.900 |
|
|
32407.300 |
80082.800 |
|
Segment Results - Profit / (Loss) before tax, interest, dividend and other non recurring / unallocable income |
|
|
|
Iron ore |
15625.700 |
37466.300 |
|
Metallurgical coke |
46.600 |
890.100 |
|
Pig iron |
1410.800 |
1410.800 |
|
Total |
17083.100 |
39767.200 |
|
Less: Interest expenses |
136.000 |
369.300 |
|
Less: Exchange Loss/(gain) on Foreign Currency Convertible Bonds |
(34.700) |
487.800 |
|
Add: Interest income |
442.600 |
1730.100 |
|
Dividend income |
1067.100 |
2599.200 |
|
Other non recurring / unallocable income |
72.300 |
618.600 |
|
Profit before tax |
18563.800 |
43858.000 |
|
Capital Employed |
|
|
|
Iron ore |
15788.300 |
15788.300 |
|
Metallurgical coke |
262.300 |
262.300 |
|
Pig iron |
2259.800 |
2259.800 |
|
Unallocated |
107257.800 |
107257.800 |
|
Total |
125568.200 |
125568.200 |
Notes:
- Pursuant to the scheme of amalgamation
approved by the Hon'ble Supreme Court of india vide its order dated
07.02.2011 by setting aside the judgement dated 21.02.2009 delivered by a
Division Bench of the High Court of Bombay at Goa and restoring the
judgement of the learned single Judge dated 18.12.2008, the entire
undertaking and business of the subsidiary, Sesa Industries Limited (SIL)
stand transferred to and vests with Subject from the appointed date
01.04.2005. Consequently the figures of the Pig Iron segment for the full
year ended 31.03.2011 were incorporated in the company's results in the
quarter ended 31.03.2011. The figures for the quarter and year ended
31.03.2011 are therefore not comparable with those of the corresponding
quarter and year of the previous period on stand alone basis.
- Consequent to the merger of SIL with
the company mentioned in the note no. 1 above, the company has issued
93.98 lakhs equity shares of Re. 1 each in the ratio of 20 shares of
Subject (of Re.1/- each) post split and post bonus for every 5 shares of
SIL of Rs.10/- each. Dividend totaling Rs.110.400 millions has been paid
on the aforementioned shares at the rate of dividend paid by the company
on its equity shares from 01.04.2005 to 31.03.2010.
- In view of Sesa Resources Limited
(erstwhile V. S. Dempo and Company Limited) and Sesa Mining Corporation
Limited (erstwhile Dempo Mining Corporation Limited) having become
subsidiaries of the Company with effect from 12.06.2009, the consolidated
figures for the current year are not comparable with the corresponding
figures of the previous year.
- Particulars of movement in Foreign
Currency Convertible Bonds (FCCB) of USD 100,000 each :
FCCB as at
01.04.2010
4,245
Converted into
equity shares during the year ended 31st March 2011 (None
during the
quarter)
2,077 #
FCCB as at
31.03.2011
2,168
# resulting in an
increase in paid up equity share capital by Rs. 28.741 millions on issue of
2,87,40,757 equity shares of Re. 1 each. The cumulative no. of shares issued on
conversion of FCCB are 3,91,88,159 equity shares of Re. 1 each.
5. The Company has
proposed to acquire upto 20% of the equity share capital of Cairn India Limited
(“CIL”), subject to requisite approvals. For the said acquisition, the Company is
acting as a Person in Concert with its ultimate holding Company Vedanta
Resources Plc ( “Vedanta”), and/or any of Vedanta’s subsidiaries for acquiring
majority of equity shares of CIL . The Company has received clearance from
Securities and Exchange Board of India. (“SEBI”) to proceed with an open offer
of up to 20% of the shares of CIL. The Company has launched the Open Offer from
11.04.2011 at a price of INR 355 per share of CIL which will close on
30.04.2011.
In April 2011, the
Company acquired 200 million shares amounting to 10.4% stake in CIL from
Petronas International Corporation Limited (“Petronas”) at a price of Rs. 331
per share. The acquisition is in addition to the Open Offer launched by the
Company on 11.04.2011.
6. The Company has
acquired assets of the upcoming Steel Plant Unit of Bellary Steel and Alloys
Limited ( “BSAL”) for an all cash consideration of Rs. 2200.000 millions. BSAL
was in the process of putting up a 0.5 mtpa Steel Plant Project at
7. Figures for the
previous periods have been regrouped / rearranged as necessary to conform to
the current period's classification.
8. The above
results were reviewed by the Audit Committee and approved at the meeting of the
Board of Directors held on 25.04.2011.
9. The Board of
Directors at their meeting held on 25.04.2011 have recommended a dividend of
Rs. 3.50 per equity share for the year 2010-11.
10. There were no
outstanding investor complaints at the beginning of the quarter. During the
quarter ended 31.03.2011 no investor complaints were received. There were no
investor complaints at the end of the quarter.
Fixed Assets:
- Mining leases
- Mining concessions
- Land plots
- Road and bunders
- Buildings
- Plant and machinery
- Aircraft
- Vehicles
- Riverfleet
- Ship
- Furniture and fittings
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.44.69 |
|
|
1 |
Rs.73.12 |
|
Euro |
1 |
Rs.64.39 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
9 |
|
PAID-UP CAPITAL |
1~10 |
8 |
|
OPERATING SCALE |
1~10 |
9 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
8 |
|
--LIQUIDITY |
1~10 |
9 |
|
--LEVERAGE |
1~10 |
8 |
|
--RESERVES |
1~10 |
9 |
|
--CREDIT LINES |
1~10 |
8 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
76 |
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.