MIRA
INFORM REPORT
|
Report Date : |
25.05.2011 |
IDENTIFICATION DETAILS
|
Name : |
ISPAT INDUSTRIES
LIMITED |
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Registered
Office : |
“ |
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Country : |
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Financials (as
on) : |
30.06.2010 |
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Date of
Incorporation : |
23.05.1984 |
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Com. Reg. No.: |
21-037519 |
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Paid-up Capital : |
Rs. 22250.900
Millions |
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CIN No.: [Company
Identification No.] |
L27106WB1984PLC037519
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TAN No.: [Tax
Deduction & Collection Account No.] |
CALI01452D |
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PAN No.: [Permanent
Account No.] |
AAACI6293E |
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Legal Form : |
Public Limited
Liability Company. The company’s
shares are listed on the Stock Exchanges. |
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Line of
Business : |
Manufacturing and
Selling of galvanized coils/ sheets, cold rolled carbon steel sheets/coils, direct
reduced iron and PVC coated sheets |
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No. of Employees : |
3000
(approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
B (27) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
Maximum Credit Limit : |
USD 63000000 |
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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. Profitability
of the company is under pressure. There appears to be huge accumulated losses
recorded by the company. Trade relations are reported as fair. Business is
active. Payments are reported to be slow. The company can be considered for business dealing with slight
caution. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – April 1, 2010
|
Country Name |
Previous Rating (31.12.2009) |
Current Rating (01.04.2010) |
|
|
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
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Restricted |
C2 |
|
Off-credit |
D |
LOCATIONS
|
Registered
Office : |
“ |
|
Tel. No.: |
91-33-2249 2213 /
3119 / 5102 / 5104 / 2249 1011 / 30265000 |
|
Fax No.: |
91-33-22491956 |
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E-Mail : |
ispat.park@ndil.sprintrpg.ems.vsnl.net.in |
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Website : |
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Central
Marketing Office : |
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Tel. No.: |
91-22-2758 2500 / 2600 / 2700 |
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Fax No.: |
91-22-2757 7959 / 7972 |
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E-Mail : |
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Corporate Office : |
7th Floor, Nirmal, Nariman Point, Mumbai - 400 021, |
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Tel. No.: |
91-22-66542222 |
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Fax No.: |
91-22-22855519 |
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E-Mail : |
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Factory 1 : |
Cold Rolling Mill and Coating Plant
Complex: A-10/1 and 10/ 2, MIDC
Industrial Area, Kalmeshwar – 441 501, District |
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Factory 2 : |
Sponge Iron Plant: Geetapuram, Dolvi – 402
107, Taluka Pen, District Raigad, |
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Factory 3 : |
Hot Strip Mill Plant: Gettapuram, Dolvi – 402
107, Taluka Pen, District Raigad, |
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Factory 4 : |
Blast Furnace Plant: Geetapuram,
Dolvi-402 107, Taluka Pen, Dist. Raigad, |
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Branches/
Depots/ Consignment Agents : |
Located at: ·
·
Guwahati ·
Kolkata ·
·
Ahmedabad ·
·
Mumbai ·
Pune ·
·
·
·
·
·
·
·
Karnal ·
·
Parwanoo ·
·
Chennai ·
·
·
Hubli |
DIRECTORS
As On 30.06.2010
|
Name : |
Mr. Pramod M.
Mittal |
|
Designation : |
Chairman |
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|
Name : |
Mr. Vinod Mittal |
|
Designation : |
Vice Chairman and
Managing Director |
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|
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|
Name : |
Mr. Mohan Lal
Mittal |
|
Designation : |
Chairman Emeritus |
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|
Name : |
Dr. A. Besant C.
Raj |
|
Designation : |
Director |
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|
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|
Name : |
Mr. Udipi Mahesh
Rao |
|
Designation : |
Director |
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|
Name : |
Dr. Basudeb Sen |
|
Designation : |
Director |
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Date of Birth/Age : |
16.06.1948 |
|
Qualification : |
M.A. (Economics), Ph.D |
|
Expertise in
specific functional areas : |
Strategic Planning, Risk Management Systems, Investment
Porfolio Management, Fund Marketing, Credit/Project appraisal etc. |
|
Date of Appointment : |
30.06.2008 |
|
Other Directorship : |
·
ITC Limited ·
South Asian
Petrochem Limited ·
Gujarat NRE
Coke Limited ·
Sumedha Fiscal
Services Limited ·
SREI Venture
Capital Limited ·
Mahanagar Gas
Limited ·
Synergy
Insurance Broking Services (private) Limited |
|
|
|
|
Name : |
Mr. Vinod Garg |
|
Designation : |
Executive Director (Commercial) |
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Date of Birth/Age : |
05.06.1956 |
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Qualification : |
B.Com., FCA |
|
Expertise in
specific functional areas : |
Marketing and Operations |
|
Date of Appointment : |
21.04.1998 |
|
Other Directorship : |
Steelscape Consultancy
Private Limited |
|
|
|
|
Name : |
Mr. Anil Sureka |
|
Designation : |
Executive Director (Finance) |
|
Date of Birth/Age : |
19.11.1955 |
|
Qualification : |
B.Com, ACS |
|
Expertise in
specific functional areas : |
Finance, Accounts and Secretarial |
|
Date of Appointment : |
01.02.2001 |
|
Other Directorship : |
·
Ispat Energy
Limited ·
Andhra Global
Pellets Limited ·
Halla Energy
and Environment ( ·
Ispat Jharkhand
Steels Limited ·
Hasya Trading
and Investments Private Limited |
|
|
|
|
Name : |
Mr. B.K. Singh |
|
Designation : |
Executive Director (Steel Plant) |
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Date of Birth/Age : |
02.02.1944 |
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Qualification : |
B.E. (Mechanical) |
|
Experience : |
Plannning, Operations, Project
implementation, Quality assurance etc. |
|
Date of Appointment : |
01.05.2008 |
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|
|
|
Name : |
Mr. M.
Sankaranarayanan |
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Designation : |
Nominee - UTI |
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Name : |
Ms. Manju Jain |
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Designation : |
Nominee (IFCI Limited) |
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Name : |
Mr. S |
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Designation : |
Nominee (IDBI Bank Limited) |
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Name : |
Mr. Mayank Agrawal |
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Designation : |
Nominee (ICICI Bank Limited) |
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Name : |
Mr. Vinod Kothari |
|
Designation : |
Director |
KEY EXECUTIVES
|
Name : |
Mr. T. P.
Subramanian |
|
Designation : |
President and 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 |
|
|
|
|
|
|
|
|
6,441,236 |
0.27 |
|
|
1,304,333,340 |
54.65 |
|
|
1,310,774,576 |
54.92 |
|
|
|
|
|
|
677,576 |
0.03 |
|
|
278,071,893 |
11.65 |
|
|
278,749,469 |
11.68 |
|
Total shareholding of Promoter and Promoter Group (A) |
1,589,524,045 |
66.60 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
2,626,464 |
0.11 |
|
|
104,926,979 |
4.40 |
|
|
12,768 |
- |
|
|
54,835,497 |
2.30 |
|
|
98,852,761 |
4.14 |
|
|
261,254,469 |
10.95 |
|
|
|
|
|
|
152,645,382 |
6.40 |
|
|
|
|
|
|
284,111,487 |
11.90 |
|
|
59,050,434 |
2.47 |
|
|
40,106,401 |
1.68 |
|
|
28,158,819 |
1.18 |
|
|
1,732,800 |
0.07 |
|
|
1,331,551 |
0.06 |
|
|
30,145 |
- |
|
|
4,286,883 |
0.18 |
|
|
4,530,403 |
0.19 |
|
|
300 |
- |
|
|
35,500 |
- |
|
|
535,913,704 |
22.45 |
|
Total Public shareholding (B) |
797,168,173 |
33.40 |
|
Total (A)+(B) |
2,386,692,218 |
100.00 |
|
(C) Shares held by Custodians and against which Depository Receipts
have been issued |
- |
- |
|
|
- |
- |
|
|
106,912 |
- |
|
|
106,912 |
- |
|
Total (A)+(B)+(C) |
2,386,799,130 |
- |
(1) Indian
Individuals / Hindu Undivided Family
Individual shareholders holding nominal share
capital up to Rs. 0.100 millionBUSINESS DETAILS
|
Line of Business : |
Manufacturing and
Selling of galvanized coils/ sheets, cold rolled carbon steel sheets/coils, direct
reduced iron and PVC coated sheets. |
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Product : |
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PRODUCTION STATUS (As on 30.06.2010)
|
Particulars |
Unit |
Installed
Capacity |
Actual
Production |
|
Direct Reduced
Iron |
MT |
2000000 |
1683919 |
|
Hot Rolled Coils |
MT |
4125000 |
3314677 |
|
Cold Rolled
Carbon Steel Sheets/Coils |
MT |
412500 |
303649 |
|
Galvanised
Coils/Sheets# |
MT |
281250 |
202686 |
|
Galvalume
Coils/Sheets# |
MT |
125000 |
32039 |
|
PVC Coated Sheets |
MT |
75000 |
75840 |
|
Tubes and Pipes |
MT |
70000 |
28891 |
|
Pig Iron/ Hot
Metal |
MT |
2500000 |
2131184 |
Notes:
(a) Licensed Capacity is not applicable as the industry is delicensed.
(b) Certified by the Company’s Technical Experts.
# During the period, 100,000 MT installed capacity of Galvanising unit has
been converted into Galvalume line, which has started its commercial production
w.e.f. 25.062009
GENERAL INFORMATION
|
No. of Employees : |
3000
(approximately) |
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Bankers : |
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Facilities : |
Notes: A. During the
period, the Company has fully redeemed the remaining portion of Rs 810.300
millions with respect to 8% Non-Convertible Debentures of the face value of
Rs. 4277.800 millions, which were secured by a first legal mortgage/equitable
mortgage on the Company’s immovable properties and pari-passu first charge by
way of hypothecation of all the moveable properties of the Company (save and
except book debts) including moveable machinery, machinery spares, tools and
accessories both present and future, subject to prior charges created in
favour of the Company’s bankers on the stock of raw materials, finished
goods, work in process, consumable stores and book debts for securing borrowings
for working capital requirements. The trustees for
debenture holders have released the above securities on redemption of
debentures. B. (i) The Rupee
and Foreign Currency Term Loans from Financial Institutions and Banks, are
secured by way of equitable mortgage by deposit of title deeds of the
Company’s immovable properties at Geetapuram (Dolvi) and by mortgage of
leasing rights in the immovable properties at Kalmeshwar (Nagpur) both in the
State of Maharashtra and a first charge by way of hypothecation of the
Company’s movables (save and except book debts) including movable machinery,
machinery spares, tools and accessories, (both present and future), subject
to prior charges created in favour of the Company’s bankers on the stock of
raw materials, finished goods, process stock, consumable stores and book
debts for securing working capital facilities. (ii) The above
Term Loans are also secured by way of english mortgage of the title in the Landed
property at Mumbai, which was sold by the Company to Peddar Realty Private
Limited (PRPL) in an earlier year. The Company’s title is subject to the
rights and interest of PRPL. The indenture of mortgage has been jointly
signed by the Company and PRPL. These term loans are further secured by the corporate
guarantee and pledge of entire shareholdings of PRPL. (iii) All the
mortgages and charges created in favour of the Financial Institutions and
Banks rank pari-passu inter se, except where specifically stipulated
otherwise. (iv) A second
charge on the fixed and current assets has been created in favour of the
working capital lenders and term loan lenders respectively. (v) Term Loans
are also secured by the pledge of a part of the shareholding of the promoters
as well as by the personal guarantees of Mr. Pramod Mittal and Mr. Vinod
Mittal, directors of the Company. Term loans aggregating to Rs. 1430.000
millions (Rs. 1430.000 millions) are also secured by personal guarantee of
Mr. M. L. Mittal, a former director of the Company. (vi) Term Loans
of Rs. 1436.800 millions (Rs 1436.800 millions) are further secured by the
Corporate Guarantee of Navoday Consultants Limited C. Cash Credit
and other working capital facilities from Banks are secured by the hypothecation
of raw materials, finished goods, process stock, consumable stores, book
debts, etc. (both present and future), and second charge over the entire
fixed assets of the Company. The working capital facilities from banks, are
also secured by personal guarantees of Mr. Pramod Mittal and Mr. Vinod
Mittal, directors of the Company. A part of the cash credit and other
facilities from Punjab National Bank and Bank of India are also secured by
personal guarantee of Mr. M. L. Mittal, a former director of the Company. D. Term Loans
aggregating to Rs. 8696.800 millions (Rs. 1189.900 millions) are repayable
within one year.
* Includes amount falling due for payment within one year Rs.14.600
millions (Rs. 1780.500 Millions) |
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Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
S. R. Batliboi
and company Chartered
Accountants |
|
Address : |
22, |
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Subsidiary
Companies : |
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Associates Companies : |
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Joint Venture Company : |
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|
Enterprises over
which Key Management Personnel /
Share Holders / Relatives have significant
influence |
|
CAPITAL STRUCTURE
As On 30.06.2010
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
4000000000 |
Equity Shares |
Rs.10/- each |
Rs.40000.000 millions |
|
100000000 |
Preference Shares
|
Rs.100/- each |
Rs.10000.000 millions |
|
1000000000 |
Preference Shares
|
Rs.10/- each |
Rs.10000.000 millions |
|
|
Total
|
|
Rs.60000.000
millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
1222442218 |
Equity Shares |
Rs.10/- each |
Rs.12224.400
millions |
|
|
Less : Allotment and Call Money
in Arrears |
|
Rs.7.300 millions
|
|
|
Due from other
than Directors) (A) |
|
Rs.12217.100
millions |
|
4,31,99,500 |
12% Cumulative Redeemable Preference Shares (CRPS)of Rs.100 each fully
paid-up (Redeemable at par in Thirteen annual installments commencing from
31.03.2020) Less: Redeemed |
Rs.100/- each |
Rs.4319.900
millions Rs.691.200
millions |
|
|
|
|
Rs.3628.700
millions |
|
15,51,12,156 |
10% Cumulative Redeemable Preference Shares (CRPS) of Rs.10 each fully
paid-up (Redeemable at par in Eight quarterly installments commencing from 15.06.2018) |
Rs.10/- each |
Rs.1551.100
millions |
|
48,59,08,844 |
0.01% Cumulative Redeemable Preference Shares (CRPS)of Rs.10 each
fully paid-up (Redeemable at par in Eight quarterly installments commencing
from 15th June 2018) |
Rs.10/- each |
Rs.4859.100
millions |
|
|
|
|
Rs.10038.900 millions |
|
|
Less :Allotment and Call Money
in Arrears |
|
Rs.5.100 millions |
|
|
(Due from other
than Directors) (B) |
|
Rs.10033.800 millions |
|
|
(A+B) |
|
Rs.22250.900 millions |
Note:
Out of above
18,31,09,080 equity shares of Rs. 10 each, 1,36,00,000 12 % CRPS of Rs. 100
each and 12,20,72,720 0.01% CRPS of Rs. 10 each, fully paid up, were issued for
consideration other than cash.
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES
OF FUNDS |
30.06.2010 (15th
Months) |
31.03.2009 |
31.03.2008 |
|
|
SHAREHOLDERS
FUNDS |
|
|
|
|
|
1] Share Capital |
22250.900 |
22725.100 |
22940.300 |
|
|
2] Share
Application Money |
180.000 |
519.800 |
0.000 |
|
|
3] Reserves &
Surplus |
14718.300 |
15444.800 |
16535.800 |
|
|
4] (Accumulated
Losses) |
(21342.300) |
(18321.500) |
(10460.000) |
|
NETWORTH
|
15806.900 |
20368.200 |
29016.100 |
|
|
|
|
|
|
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
71569.000 |
71512.800 |
69400.500 |
|
|
2] Unsecured
Loans |
248.500 |
2002.400 |
2849.900 |
|
TOTAL BORROWING
|
71817.500 |
73515.200 |
72250.400 |
|
|
DEFERRED TAX
LIABILITIES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
TOTAL
|
87624.400 |
93883.400 |
101266.500 |
|
|
|
|
|
|
|
APPLICATION OF FUNDS
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block]
|
79273.500 |
88878.100 |
92060.100 |
|
Capital work-in-progress
|
637.300 |
985.200 |
1082.500 |
|
|
|
|
|
|
|
|
Pre-operative & Trial Run Expenses |
0.000 |
41.900 |
0.000 |
|
INVESTMENT
|
2293.700 |
2328.900 |
1180.400 |
|
DEFERREX TAX ASSETS
|
9642.800 |
9501.300 |
5465.700 |
|
Foreign Currency Monetary Item Translation Difference
Account
|
20.800 |
49.400 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
19341.700 |
13829.300 |
13683.800 |
|
|
Sundry Debtors |
7589.700 |
5641.800 |
5798.300 |
|
|
Cash & Bank Balances |
2030.600 |
793.900 |
925.200 |
|
|
Other Current Assets |
0.000 |
0.000 |
0.000 |
|
|
Loans & Advances |
7968.700
|
9273.300
|
8340.600
|
|
Total
Current Assets |
36930.700
|
29538.300
|
28747.900
|
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
18289.700
|
18348.900
|
|
|
|
Other Current Liabilities |
22519.600
|
18740.800
|
26936.700
|
|
|
Provisions |
365.100
|
350.00
|
333.400
|
|
Total
Current Liabilities |
41174.400
|
37439.700
|
27270.100
|
|
|
Net Current Assets |
(4243.700)
|
(7901.400)
|
1477.800
|
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
87624.400 |
93883.400 |
101266.500 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
30.06.2010 (15th
Months) |
31.03.2009 |
31.03.2008 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
101327.300 |
81319.800 |
82841.400 |
|
|
|
Other Income |
4459.600 |
4058.600 |
4268.600 |
|
|
|
TOTAL (A) |
105786.900 |
85378.400 |
87110.000 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Increase/Decrease in Finished Goods |
(2695.300) |
1050.500 |
1591.600 |
|
|
|
Excise Duty & Cess on Stocks
|
295.400 |
(189.300) |
(9.700) |
|
|
|
Raw Materials Consumed |
58952.500 |
46508.400 |
45358.300 |
|
|
|
Purchases of Finished Goods |
0.000 |
0.000 |
107.100 |
|
|
|
Personal Cost |
2733.600 |
2076.000 |
2026.000 |
|
|
|
Manufacturing,
Selling & Distribution &
Administrative Expenses |
29271.300 |
21625.500 |
22006.800 |
|
|
|
TOTAL (B) |
88557.500 |
71071.100 |
71080.100 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
17229.400 |
14307.300 |
16029.900 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
12854.500 |
11593.000 |
8492.500 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
4374.900 |
2714.300 |
7537.400 |
|
|
|
|
|
|
|
|
|
Less |
DEPRECIATION/
AMORTISATION (F) |
7739.500 |
6466.200 |
6381.200 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
(3364.600) |
(3751.900) |
1156.200 |
|
|
|
|
|
|
|
|
|
Less |
TAX (I) |
(141.200) |
3129.200 |
808.200 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-I) (J) |
(3223.400) |
(6881.100) |
348.000 |
|
|
|
|
|
|
|
|
|
Less |
DEBENTURE REDEMPTION
RESERVE WRITTEN BACK |
202.600 |
277.100 |
|
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
(18321.500) |
(10460.000) |
|
|
|
|
|
|
|
|
|
|
Add |
ADJUSTMENTS |
|
|
|
|
|
|
(A) TOWARDS EXCHANGE DIFFERENCES OF 2007-08 TRANSFERRED
TO FIXED ASSETS (NET OF DEPRECIATION RS. 64.400 MILLIONS AND DEFERRED TAX
CREDIT OF RS. 632.300 MILLIONS) |
0.000 |
(1228.100) |
NA |
|
|
|
|
|
|
|
|
|
|
(B) TOWARDS EXCHANGE DIFFERENCES OF 2007-08 TRANSFERRED
TO FOREIGN CURRENCY MONETARY ITEM TRANSLATION DIFFERENCE ACCOUNT (NET OF
AMORTISATION RS. 14.800 MILLIONS AND DEFERRED TAX CREDIT OF RS. 15.200
MILLIONS) |
0.000 |
(29.400) |
NA |
|
|
|
|
|
|
|
|
|
|
BALANCE CARRIED
TO THE B/S |
(21342.300) |
(18321.500) |
NA |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export Earnings |
4334.400 |
7198.500 |
|
|
|
|
Vessel Rentals |
0.000 |
24.100 |
|
|
|
TOTAL EARNINGS |
4334.400 |
7222.600 |
8644.600 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
30464.700 |
25669.200 |
21905.300 |
|
|
|
Stores & Spares |
2896.000 |
1843.600 |
1418.300 |
|
|
|
Capital Goods |
737.900 |
102.400 |
393.900 |
|
|
TOTAL IMPORTS |
34098.600 |
27615.200 |
23717.500 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
(3.37) |
(6.25) |
(0.36) |
|
QUARTERLY
RESULTS
|
PARTICULARS |
|
|
30.09.2010 1st
Quarter |
31.12.2010 2nd
Quarter |
31.03.2011 3rd
Quarter |
|
Net Sales |
|
|
21845.800 |
9783.700 |
27218.800 |
|
Total Expenditure |
|
|
22611.700 |
11478.700 |
23151.400 |
|
PBIDT (Excl OI) |
|
|
(765.900) |
(1695.000) |
4067.400 |
|
Operating Profit |
|
|
(765.900) |
(1695.000) |
4067.400 |
|
Interest |
|
|
2645.000 |
2744.300 |
1880.000 |
|
PBDT |
|
|
(3410.900) |
(4439.300) |
2187.400 |
|
Depreciation |
|
|
1544.100 |
1462.200 |
1482.900 |
|
Profit Before Tax |
|
|
(4955.000) |
(5901.500) |
704.500 |
|
Tax |
|
|
(1638.800) |
(1808.400) |
2.700 |
|
Profit After Tax |
|
|
(3316.200) |
(4093.100) |
701.800 |
|
Net Profit |
|
|
(3316.200) |
(4093.100) |
701.800 |
KEY RATIOS
|
PARTICULARS |
|
30.06.2010 (15 Months) |
31.03.2009 |
31.03.2008 |
|
PAT / Total Income |
(%) |
(3.05)
|
(8.06)
|
0.40
|
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
(3.32)
|
(4.61)
|
1.40
|
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
(2.90)
|
(3.17)
|
0.94
|
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
(0.21)
|
(0.18)
|
0.04
|
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
7.15
|
5.45
|
3.43
|
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
0.90
|
0.79
|
1.05
|
LOCAL AGENCY FURTHER INFORMATION
HISTORY
Subject is one of the integrated steel makers and the
largest private sector producer of hot rolled coils in
FINANCIAL RESULTS:
Income from
operations during the fifteen-month period was Rs.109831.400 millions and profit
before interest, finance charges and depreciation was Rs.17229.400 millions.
After providing for interest and finance charges of Rs.12854.500 millions,
profit before depreciation was Rs.4374.900 millions. After providing for
depreciation of Rs.7739.500 millions, loss before tax provisions was
Rs.3364.600 millions for the period.
After considering
deferred tax credit of Rs.141.500 millions and providing for wealth tax
Rs.0.300 millions, net loss during the period was Rs.3223.400 millions.
Considering Debenture Redemption Reserve written back Rs.202.600 millions and
accumulated losses of Rs.18321.500 millions brought forward from the previous
year, the accumulated losses as at 30.06.2010 was Rs.21342.300 millions. The
losses are proposed to be carried to next year’s accounts.
FINANCIAL YEAR
The financial year
of the Company has been extended by a period of 3 (three) months upto
30.06.2010. Accordingly, the Company’s financial year 2009-10 is for a period
of 15 (fifteen) months, 01.04.2009 to 30.06.2010.
OPERATIONS
The deep economic
recession had resulted in a negative global GDP during the year 2009. World
economy has since regained certain stability and modest growth rates are being
witnessed in the economies of developed countries. On the other hand, countries
in the developing world have, however, registered relatively high levels of
economic growth and robust domestic markets.
Global steel
industry had witnessed an unprecedented dip in demand and sharp decline in
prices during the period of economic meltdown. Global steel production had
declined by 8% during 2009 and consumption was lower by 6%, notwithstanding the
visible rebound during second half of 2009. Backed by fiscal stimulus-led
global economic recovery, steel industry has since demonstrated visible signs
of demand pick-up and price stabilization during the last quarter of year 2009.
The current year, so far, has seen a marked increase in domestic steel demand
led by impressive growth in vital end-user segments, such as, automobile and
consumer goods. While developed economies had faced slow economic recovery,
During the period,
the Company sought to consolidate its efforts towards optimizing productivity
and innovating its product basket. Production of Hot Rolled Coils at 3.31
Million MTs was higher by 24% compared to the previous financial year, on an
annualized basis. Capacity utilization was over 80% of the enhanced annual
capacity of 3.3 Million MTs. Production of Direct Reduced Iron (Sponge Iron) at
1.68 Million MTs was higher by 23% over the previous financial year, on an
annualized basis. Efforts undertaken by the Company towards securing additional
supplies of Natural Gas had resulted in improved production of Direct Reduced
Iron during the year.
Production of Hot
Metal was higher at 2.13 Million MTs. Upgradation of Blast Furnace during 2009
has resulted in significant improvement in process efficiencies and new
benchmarks are being set on all production parameters. Production of Cold
Rolled Steel Coils/Sheets and Galvanized Coils/Sheets had registered increase
at 0.31 Million MTs and 0.20 Million MTs, respectively. In its endeavour to
continually offer superior products, the Company has added Galvalume, a premium
metallic-coated steel product, to its product-basket. Galvaume finds extensive
application in corrosion and temperature resistance. Production of Galvalume
Coils/Sheets has been streamlined during the period. Production of Tubes and
Pipes had also stabilized during the period. Production of PVC coated sheets
during the period was at 101% of installed capacity. Sales of Hot Rolled Coils
at 2.88 Million MTs was higher by 19%, compared to previous year, on an
annualized basis. Sales of Cold Rolled Steel Coils/Sheets was higher by 11%,
whereas sales of Galvanized Coils/Sheets was lower by 7%, compared to previous
year, on an annualized basis. Sales of Tubes and Pipes was commensurate with
production achieved during the period.
During the period,
prices of basic inputs, namely, iron ore, coke and pellets had increased
substantially. Simultaneously, prices of utilities, such as, natural gas and
energy, had also gone up. This had resulted in lower margins with consequential
impact on the Company’s financial results.
EXPORTS:
Export earnings
during the period was Rs.4334.400 Millions. Exports were lower during the
period due to slack demand conditions in the
PROJECTS:
The coke oven
project of the annual capacity of 1 Million MTs, undertaken in joint venture,
has been appraised at a cost of Rs.11240.000 Millions. Debt component of the
project is expected to be tied-up shortly. The project is expected to be
commissioned within a period of 24 months from achievement of financial
closure. Initial development activities have already commenced in the proposed
iron ore pellet project of 2 Million MTs. The Company has, simultaneously,
entered into long-term supply contract with a major producer of iron ore
pellets, so as to effectively secure its input requirements. The Company has
obtained a prospective license for mining of iron ore in Damkodwadvi area of
Bhamragarh in the state of
Initial activities
have also been undertaken by the respective Wholly-Owned Subsidiaries in the
proposed iron ore and coal mining projects overseas. The Company had entered into
separate Memoranda of Understanding (MOU) with the respective Governments of
Jharkhand and Chattisgarh for setting-up an integral steel plant (annual
capacity of 2.8 Million MTs) and coal-based thermal power plant (annual
combined capacity of 1200 MW). Site selection activities are in the progress
for the integrated steel plant proposed in the state of Jharkhand. The state
government has been approached to allocate alternate iron ore mines,
commensurate with the size of the project. Progress in implementation of the
coal-based thermal power plant in the state of Chattisgarh has slowed down due
to delays in grant of coal linkage by the government.
CAPTIVE POWER
PLANT OF ISPAT ENERGY LIMITED:
Due to certain
unforeseen delays in achieving financial closure, the schedule for
implementation of the 110 MW Power Plant by Ispat Energy Limited, the Company’s
wholly-owned subsidiary, has been further delayed. The project, proposed to be
implemented in two separate phases of 55 MW each, is now scheduled to be commissioned
during early 2012. The cost of the project is estimated at Rs.4910.000
Millions. Financial closure of the project is expected to be achieved shortly.
MANAGEMENT
DISCUSSION AND ANALYSIS:
INDUSTRY STRUCTURE
AND DEVELOPMENTS:
Global Steel Industry
After two years of
deep economic recession, signs of economic stability are now visible in the
developed world. Though growth rates in the economies of developed world are
still moderate, countries in the developing region, in contrast, have been registering
high GDP growth. IMF estimates a positive economic trend in 2010 and the global
economy to register a sharp 4% growth. The WTO also projects world trade to
expand by 9%, with the developed regions growing by nearly 8% and the emerging
regions by over 11%. Following the world-wide economic crisis, the steel
industry had demonstrated visible signs of demand pick-up and price
stabilization during the last quarter of 2009. However, as a result of the deep
recession through most of the year, global crude steel production had dipped by
8% during 2009 in comparison to the previous year. Major steel producing
countries, such as,
Due to the
widespread economic recession, global steel consumption had declined by nearly
7% during 2009, in comparison to the previous year. Finished steel consumption
during 2009 was 1121 Million Tons. Steel consumption in
Indian Steel Scenario:
Latest projections
of steel consumption by World Steel Association peg finished steel consumption
in
PRODUCT / SEGMENT
PERFORMANCE:
Production of Hot
Rolled Coils at 3.31 Million MTs was higher by 24% compared to the previous
financial year, on an annualized basis. Capacity utilization was over 80% of
the enhanced annual capacity of 3.3 Million MTs. Production of Direct Reduced
Iron (Sponge Iron) at 1.68 Million MTs was higher by 23% over the previous
financial year, on an annualized basis. Securing additional supplies of Natural
Gas had resulted in improved production of Direct Reduced Iron during the
period. Production of Hot Metal was higher at 2.13 Million MTs. The upgradation
of Blast Furnace during 2009 had resulted in significant improvement in process
efficiencies. Production of Cold Rolled Steel Coils/Sheets and Galvanized
Coils/Sheets had registered increase at 0.31 Million MTs and 0.20 Million MTs,
respectively. In its endeavour to continually offer superior products, the
Company has added Galvalume, a premium metallic-coated steel product, to its
product-basket. Galvaume finds extensive application in corrosion and
temperature resistance. Production of Galvalume Coils/Sheets has been
streamlined during the period. Production of Tubes and Pipes had also
stabilized during the period. Production of PVC coated sheets during the period
was at 101% of installed capacity. Sales of Hot Rolled Coils at 2.88 Million
MTs was higher by 19%, compared to previous year, on an annualized basis. Sales
of Cold Rolled Steel Coils/Sheets was higher by 11%, whereas sales of
Galvanized Coils/Sheets was lower by 7%, compared to previous year, on an
annualized basis. Sales of Tubes and Pipes was commensurate with production
achieved during the period.
EXPORTS
Export earnings
during the period was Rs.4334.400 Millions. Exports were lower during the
period due to slack demand conditions prevailing in world markets. Export
realizations were significantly low leading to fall in the Company’s export
earnings.
FINANCIAL
PERFORMANCE (STANDALONE) IN RELATION TO OPERATIONAL PERFORMANCE
Income from
operations during the fifteen-month period was Rs.109831.400 millions and
profit before interest, finance charges and depreciation was Rs.17229.400
millions. After providing for interest and finance charges of Rs.12854.500
millions, profit before depreciation was Rs.4374.900 millions.
After providing
for depreciation of Rs.7739.500 millions, loss before tax provisions was
Rs.3364.600 millions for the period. After considering deferred tax credit of
Rs.141.500 millions and providing for wealth tax Rs.0.300 million, net loss
during the period was Rs.3223.400 millions. Considering Debenture Redemption
Reserve written back Rs.202.600 millions and accumulated losses of Rs.18321.500
millions brought forward from the previous year, the accumulated losses as at
30.06.2010 was Rs.21342.300 millions.
AWARDS AND
ACCOLADES
The Company has
been conferred with the following prestigious awards during the year :-
_ Fe-EVI Green
Business Leadership Award 2009-10 initiated by Financial Express and Emergent
Ventures Limited
_ Dr R J Rathi
Award 2010 for Environment and Pollution Control
_
_ Golden Peacock
Award for Corporate Social Responsibility-2010
_ Special
Commendation for Golden Peacock Award for Excellence in Corporate Governance
2009.
Contingent
liabilities not provided for in respect of: (As on 30.06.2010)
Rs.
In Millions
|
a) |
Claims against the Company not acknowledged as debts |
159.700 |
|
b) |
Excise and Custom Demands under
dispute/ appeal |
90.300 |
|
c) |
Income Tax demands under appeal |
33.800 |
|
d) |
Sales Tax matters (under dispute/appeal) |
16.300 |
|
e) |
Letters of Credit, Bills discounted and Bank Guarantees outstanding |
2506.600 |
|
f) |
Corporate Guarantees issued to Financial Institutions and others on
behalf of various bodies corporate |
2904.400 |
|
g) |
Custom Duty on import of equipments and spare parts under EPCG-scheme
(including Rs.382.200 Millions
(Rs.382.200 Millions) relating to Ispat Energy Limited., a subsidiary
company) |
2139.400 |
UNAUDITED
FINANCIAL RESULTS FOR THE QUARTER ENDED 31.12.2010
(Rs. In Millions)
|
|
2010 |
2010 |
|
|
|
|
Unaudited |
Unaudited |
|
1 |
Sales/Income from Operations |
10567.300 |
34154.000 |
|
|
Less : Excise Duty |
957.800 |
2994.800 |
|
|
a) Net Sales/Income from Operations |
9609.500 |
31159.200 |
|
|
b) Other Operating Income |
174.200 |
470.300 |
|
|
Total |
9783.700 |
31629.500 |
|
2 |
Expenditure |
|
|
|
|
a) Decrease/ (Increase) in stock in
trade and work in progress |
506.600 |
1735.400 |
|
|
b) Consumption of raw materials |
6351.500 |
21064.100 |
|
|
c) Power & Fuel Cost |
2236.300 |
6024.500 |
|
|
d) Employees cost |
567.500 |
1134.900 |
|
|
e) Depreciation |
1462.200 |
3006.300 |
|
|
f) Other expenditure |
1816.800 |
4131.500 |
|
|
Total |
12940.900 |
37096.700 |
|
|
|
|
|
|
3 |
Profit / (Loss)
from Operations before Other Income & Interest (1-2) |
(3157.200) |
(5467.200) |
|
|
|
|
|
|
4 |
Other Income |
- |
- |
|
|
|
|
|
|
5 |
Profit / (Loss)
before Interest (3+4) |
(3157.200) |
(5467.200) |
|
|
|
|
|
|
6 |
Interest |
2744.300 |
5389.300 |
|
|
|
|
|
|
7 |
Profit / (Loss)
from Ordinary Activities before tax (5-6) |
(5901.500) |
(10856.500) |
|
|
|
|
|
|
8 |
Tax Expenses |
|
|
|
|
-
Current Tax |
- |
- |
|
|
- Deferred
Tax Charge/ (Credit) [Refer Note No. 1(a) below] |
(1808.400) |
(3447.200) |
|
|
-
Fringe Benefit Tax |
- |
- |
|
|
|
|
|
|
9 |
Net
Profit/(Loss) (7-8) |
(4093.100) |
(7409.300) |
|
|
|
|
|
|
10 |
Paid-Up Equity Share Capital |
12994.200 |
12994.200 |
|
|
(Face Value of Rs.10/- each) |
|
|
|
|
|
|
|
|
11 |
Reserves excluding Revaluation Reserves |
|
|
|
|
|
|
|
|
12 |
Earning Per Share (EPS) (not annualised) |
|
|
|
|
Basic and Diluted EPS (Rs.) (Refer Note
No. 9 below) |
(3.49) |
(6.35) |
|
|
|
|
|
|
13 |
Public shareholding |
|
|
|
|
-
Number of shares * |
797168173 |
797168173 |
|
|
- Percentage of shareholding * |
61.31 |
61.31 |
|
|
|
|
|
|
14 |
Promoters & Promoter Group
shareholding |
|
|
|
|
a) Pledged/ Encumbered |
|
|
|
|
-
Number of shares |
477730463 |
477730463 |
|
|
- Percentage of share (as a % of the
total shareholding of Promoters & |
95.00 |
95.00 |
|
|
- Percentage of share (as a % of the
total share capital of the Company) |
36.75 |
36.75 |
|
|
b) Non-Encumbered |
|
|
|
|
-
Number of shares |
25143708 |
25143708 |
|
|
- Percentage of share (as a % of the
total shareholding of Promoters & |
5.00 |
5.00 |
|
|
- Percentage of share (as a % of the
total share capital of the Company) |
1.93 |
1.93 |
* excluding 106912 Shares (0.01%) represented by
Global Depository Receipts, which are held by custodians.
Notes:
1. (a) The Auditors in their audit report on the Company's Accounts for fifteen months period ended 30.06.2010 and limited review report for the quarter ended 30.09.2010, had drawn attention to their inability to express any opinion on the recognition of net Deferred Tax Asset of Rs. 9642.800 millions upto 30.06.2010 and Rs. 11281.600 millions upto 30.09.2010.
In view of the techno-economic viability study carried out by an expert appointed by the lenders, process improvements carried out for enhancing the steel-making capacity and operating efficiency and the Company's Business Plans, strategies and profitability estimates, improvement in net worth consequent on issue of equity shares to JSW Steel Limited, approval of the company's proposals by its lenders through CDR mechanism (more described in Note 8 below), the company is virtually certain that there would be sufficient taxable income in the future to claim the deferred tax credit. The financial results for the period have, therefore, been drawn as per going concern assumption.
(b) The Auditors in their audit report on the Company's Accounts for fifteen months period ended 30.06.2010, and limited review report for the quarter ended 30.09.2010, had also drawn attention to remuneration of Rs. 155.200 millions and Rs. 163.500 millions respectively to the Managing and other Whole-time Directors, which is in excess of the approvals received from Ministry of Corporate Affairs. However, no adjustment towards the excess managerial remuneration recoverable from these directors has been made in the accounts.
Representation has been made by the Company to Ministry of Corporate Affairs for reconsideration of the above approvals and, hence, no adjustment towards recovery of the above excess managerial remuneration has been made in the accounts.
- There were no extraordinary and exceptional items during the respective periods reported above.
- The Company had undertaken technical up-gradation of plant facilities at its Steel Complex at Dolvi from 07.11.2010. The up-gradation involved blending of various technical facilities, plant shutdown and maintenance related activities. The operations at the Steel Complex at Dolvi have commenced from 22.12.2010.
- The Income tax department had conducted a search and seizure operation on the Company’s premises on 30.11.2010. However, no order consequent to such operation has so far been received by the Company.
- Upon certain lenders, opting to convert a part of their outstanding dues into equity shares in terms of the loan/facility agreements entered into with them, the Company has issued and allotted an aggregate of 7,77,07,038 equity shares at par to such lenders on 24.11.2010.
- The Board of Directors of the Company, at its meeting held on 20.12.2010, has decided to cancel the proposed issue of 11,33,06,895 Equity Warrants, on preferential basis, to the promoters.
- Pursuant to the Subscription cum Shareholders Agreement entered into by the Company on 20.12.2010 with its promoters and JSW Steel Limited, and upon receipt of various consents/approvals, the Company has allotted to JSW Steel Limited, on preferential basis, 108,66,49,874 equity shares of Rs.10/- each, at a premium of Rs.9.85 per share, aggregating to Rs. 21570.000 millions. The said equity shares have been allotted to JSW Steel Limited on 24.01.2011.
- The Corporate Debt Restructuring Cell (CDR), vide its letter dated 21.01.2011, has conveyed approval , on behalf of Company's majority lenders , which includes , inter-alia , allotment of equity shares to JSW Steel Limited, for an aggregate amount of Rs. 21570.000 millions and to hold a majority stake in the Company with management control.
- Basic and Diluted EPS have been computed after considering the impact of proportionate arrear dividends on Cumulative Redeemable Preference Shares on the profit/ loss for the respective periods in terms of Accounting Standard 20 'Earnings Per Share".
- The Company has identified Iron and Steel products as its sole operating segment and hence no further disclosure is required under Accounting Standard 17.
- Previous period/ year figures have been re-grouped / re-arranged wherever necessary.
- At the beginning of the quarter, there were no complaints from investors pending for disposal. During the quarter, 114 complaints were received and these were appropriately disposed off. Thus, there were no complaints from investors pending for disposal at the end of the quarter.
- The above unaudited financial results for the Quarter ended 31.12.2010 were reviewed by the Audit Committee and approved by the Board of Directors at their respective meetings held on 14.02.2011.
SEGMENT
OF ASSETS AND LIABILITIES
(Rs.
In Millions)
|
|
31.12.2010 |
|
|
Un Audited |
|
Shareholders'
Fund |
|
|
(a) Share Capital |
2302.80 |
|
(b) Application Money towards Equity
Warrants |
18.00 |
|
(c) Advance against Share Subscription |
500.00 |
|
(d) Reserves & Surplus |
1431.03 |
|
Loan Funds |
7127.93 |
|
TOTAL |
11379.76 |
|
|
|
|
Fixed Assets |
7614.85 |
|
Investments |
229.37 |
|
Deferred Tax
Asset |
1309.00 |
|
Foreign Currency
Monetary Items Translation Difference Account |
0.74 |
|
Current Assets,
Loans & Advances |
|
|
(a) Inventories |
1808.17 |
|
(b) Sundry Debtors |
665.30 |
|
(c) Cash & Bank Balances |
69.05 |
|
(d) Loans, Advances & Deposits |
795.64 |
|
Less: Current Liabilities &
Provisions |
|
|
(a) Liabilities |
3947.43 |
|
(b) Provisions |
40.09 |
|
Profit and Loss
Account Debit balance |
2875.16 |
|
|
|
|
TOTAL |
11379.76 |
FIXED ASSETS:
·
·
·
Buildings
·
Railways Sidings and Locomotives
·
Plant and Machinery
·
Vessels
·
Electrical Installations
· Vehicles
· Furniture and Fixtures
· Office Equipment
· Computers
WEBSITE DETAILS:
PROFILE:
Subject is one of the integrated steel makers and the largest private
sector producer of hot rolled coils in
Headquartered at Mumbai, subject employs a total of 3000 people and is
the leader in the national speciality steel market. The company's core
competency is the production of high quality steel, for which it employs
cutting edge technologies and stringent quality standards. It produces
world-class sponge iron, galvanized sheets and cold rolled coils, in addition
to hot rolled coils, through its two state-of-the art integrated steel plants,
located at Dolvi and Kalmeshwar in the state of
The sprawling 1,200 acres Dolvi complex houses the 3 million tonne per annum
hot rolled coils plant, that combines the latest technologies - the Conarc
process for steel making and the compact strip process (CSP) - introduced for
the first time in Asia.
The complex also has a 1.6 million tonne per annum sponge iron (DRI) plant,
which was commissioned in 1994 as the world's largest and most efficient
gas-based single mega module plant. Moreover, the Dolvi complex is home to a 2
million tonne blast furnace and also boasts a mechanised multi-functional jetty
situated nearby, that facilitates the automation of raw material handling. A
new 2.24 million tonnes per annum sinter plant, a 1260 tonnes per day oxygen
and a new electric arc furnace have also been commissioned at subject Dolvi.
Ispat is the only steel maker in India and among a few in the world to have
total flexibility in choice of steel making route, be it the conventional blast
furnace route or the electric arc furnace route. Its dual technology allows
Ispat the freedom to choose its raw material feed, be it pig iron, sponge iron,
iron ore, scrap or any combination of various feeds. It also has total
flexibility in choosing its energy source, be it electricity, coal or gas.
The Kalmeshwar complex houses Ispat's 0.4 million tonnes cold rolling complex,
which also includes the galvanized plain/ galvanized corrugated (GP/GC) lines
and India's first colour coating mill.
Technology and innovation have always been the cornerstones of subject's quest
for excellence and these state-of-the-art plants facilitate the company's
mission to attain and sustain market leadership, through technological and
product superiority.
The company's strengths lie in its integrated process management, knowledge
management and control systems. And its seamless supply chain management
systems further the efficient use of raw materials, while its staff of highly
skilled engineers, technicians and managers with specialised domain knowledge,
ensure the choice of the relevant technology and the ability to produce
international quality products at a competitive price.
In line with its vision for the future, subject is expanding its HRC capacity
to 3.6 million. Moreover, it aims to complete its vertical integration process,
increase the proportion of high-grade and value-added steel products in its
product mix and leverage the advantage the modern design and the size of the
facilities offers.
With investments of over US $2 billion, subject is the seventh largest Indian
private sector company in terms of fixed assets. It aims to consolidate its
market leadership in the national specialty steel market by capitalising on the
proximity of its manufacturing facilities to major consumers of flat steel
products in
In the short span of time since its inception, Ispat Industries has steadily
raised the bar - in terms of its relentless pursuit of technological
advancement, unwavering focus on innovation, strident emphasis on quality
products and its constant initiatives aimed at ensuring customer satisfaction.
As it rapidly forges ahead on all these fronts, subject has successfully
reinforced its position as market leader, while simultaneously making
technological breakthroughs and setting even higher standards for itself.
Milestones
Since its inception, the Ispat Group has been moving from strength to
strength, consistently breaking new grounds and spearheading new developments
in iron and steel. Ispat Industries, the flagship of the Ispat Group, has taken
expansive technological strides to emerge as one of
1952
Mr. M L Mittal, the founder
chairman of the Ispat Group, begins his foray into the iron and steel business
with the takeover of an ailing rolling mill in
1953
A combination of technological
vision and management leads Mr. M L Mittal to experiment with an electric arc
furnace at a steel plant in
1974
Mr. M L Mittal enters the
international steel arena by setting up PT Ispat Indo in
1980
This decade witnesses a series
of acquisitions around the world and hectic expansion in
1984
Nippon Denro Ispat Limited was incorporated
in 1984 and was granted the first Industrial License by Government of India for
manufacturing Galvanised Plain/Corrugated Sheets.
1985
Nippon Denro Ispat Limited, now
known as Ispat Industries (IIL), is established and it rapidly emerges as the
largest manufacturer of galvanised steel products in the private sector.
1988
To better provide steel
solutions to an increasingly sophisticated marketplace, Subject sets up a
highly advanced cold rolling reversing mill, in collaboration with Hitachi of
Japan, to manufacture a wide range of cold rolled carbon steel strips.
1988
Subject instals a colour
coating line – the first of its kind in
1988
Nippon Denro Ispat Limited was
granted Industrial License for Cold Rolled Sheets.
1994
Business interests within the
Ispat Group are demarcated. The eldest son, Mr. L N Mittal continues to manage
the international operations while Mr. Pramod Mittal and Mr. Vinod Mittal, the
younger brothers focus on steel and other businesses in India.
1994
Subject commissions the world’s
largest gas-based single mega module plant for manufacturing direct reduced
iron (sponge iron), at its Maharashtra-based Dolvi plant. Within three months,
the plant exceeds its capacity of 1 million tonnes per annum (MTPA) of high
quality DRI.
1995
A 1.5 MTPA hot strip mill with
Continuous Strip Processing (CSP) technology is installed at Dolvi. A
mechanised multi-functional jetty situated close to the plant facilitates the
automation of raw material handling.
1998
A world-class integrated steel
plant for the production of hot rolled coils is launched, armed with cutting
edge technologies, such as the Conarc Process for steel making and the Compact
Strip Process, both introduced for the first time in
2000
The new millennium is witness
to the erection and commissioning of a 2 MTPA blast furnace at the Dolvi steel
complex in record time.
2003
» Blast Furnace commissioned
» Sponge iron capacity increased from 1.2 mtpa to 1.4 mtpa
2004
» Hot rolled coil
steel-making capacity increased from 1.5 mtpa to 2.4 mtpa
» Sponge iron capacity increased from 1.4 mtpa to 1.6 mtpa
2005
» Further expansion of
Hot rolled coil steel capacity under implementation
Accolades
Since its inception, the Ispat Group has been moving from
strength to strength, consistently breaking new grounds and spearheading new
developments in iron and steel. Ispat Industries, the flagship of the Ispat
Group, has taken expansive technological strides to emerge as one of
CII Exim Bank Award for Business Excellence 2008 -
Commendation for Strong Commitment to Excel
The Award encourages the Organisation to strengthen their Management systems,practices,capabilities to enhance and sustain their competitiveness to become World Class Organisation through Business Excellence..
Amity HR Growth Award 2008
HR Excellence Award for 2008 for the exemplary acceleration and development of the organisation by managing a talent pool in a talent source macro-environment ,thus achieving unprecedental growth by utilizing its human capital.
Golden Peacock National Training Award 2008
Ispat Training Department won the “Golden Peacock National
Training Award” for the year 2006 for the excellent contribution made in the
area of Training and development.. This award is given by a panel of judges
headed by Justice P N Bhagwati, Former Chief Justice of
QCFI Convention at Chapter and National Level Conventions
-Par Excellence Kaizen Award
The QCFI Convention is a forum for interaction and sharing of Knowledge,ideas and give recognition to members of Quality Circles and other allied concepts like TPM,Kaizen,5S,Poka Yoke, Six Sigma etc. .
Golden Peacock Environment Management Award - 2006
Winner 2006: ‘Ispat Industries Limited, Sponge Iron Plant, Raigad' has been declared as the winner of “Golden Peacock Environment Management Award” for the year 2006 by a jury headed by Justice P N Bhagwati, Former Chief Justice of India. (during 8th World Congress on Environment Management at Palampur)..
Appreciation for the efforts taken by the Plant and its personnel in enhancement of the Manufacturing Excellence..
Good Green Governance Award 2007
Award for the pro-environment work done by Organisation beyond Compliance requirements...
Golden Peacock National Training Award 2007
Ispat Training Department won the “Golden Peacock National
Training Award” for the year 2006 for the excellent contribution made in the area
of Training and development.. This award is given by a panel of judges headed
by Justice P N Bhagwati, Former Chief Justice of
TPM Excellence Award - Level 1
Award in recognition of the efforts and contributions made by the employees in the Organsation to achieve improvement in Plant Maintenance technologies to achieve remarkable results in productivity,quality,cost reduction and company cultural change.
Safety Innovation Award 2006
For Implementing Innovative Safety Management Systems at
Ispat Industries Limited, Raigad. Presented by Shri. Pradeep Chaturvedi,
Chairman, Safety and Quality Forum,
Golden Peacock Award for Corporate Social Responsibility
2005
Ispat Industries Limited won the ‘Golden Peacock Award for
Corporate Social Responsibility - 2005’ in the category of ‘Private Sector’.
Instituted by the Institutes of Director,
Excellence Kaizen Award2005
The QCFI Convention is a forum for interaction and sharing of Knowledge, ideas and give recognition to members of Quality Circles and other allied concepts like TPM,Kaizen,5S,Poka Yoke, Six Sigma etc.
Press Release:
Ispat signs strategic co-operation agreement
with Stemcor of the UK
Ispat Industries is
Stemcor is a privately-held
steel trading company incorporated in
Under the MoU, Stemcor would
invest in a 10 per cent preferential allotment in Ispat Industries, and both
companies would work towards developing a pellet plant and captive power plant,
which are to be set up at Ispat's integrated complex at Dolvi.
The two companies are already
progressing their joint participation in a 1 million tonne coke oven plant that
will cater to Ispat's captive requirement. Completion of these 3 projects,
expected in the next 2 years, will complete Ispat's backward integration at its
Dolvi complex.
The pricing and other terms of
the investment, and terms of participation, in individual projects are to be
agreed and are subject, on each party’s side, to Lenders approval, Board of
Directors approval and Shareholders approval, in addition to SEBI and other
mandatory approvals.
Following are the ex-plant (Dolvi) prevailing prices of Hot rolled Coils
valid from 01.11.2010.
|
Description |
Thickness (MM) |
Quality (Base test grade) |
Width (MM) |
Base Price Explant Rs./ Kg |
|
Sheet gauge |
1.5 |
IS 5986 Fe 410 |
1250 |
34.85 |
|
1.6 |
IS 5986 Fe 410 |
1250 |
34.55 |
|
|
1.8 |
IS 5986 Fe 410 |
1250 |
34.15 |
|
|
2 |
IS 5986 Fe 410 |
1250 |
33.85 |
|
|
2.5 / 3.0 |
IS 5986 Fe 410 |
1250 |
33.60 |
|
|
Plate gauge |
5 – 12 |
IS 2062 Gr.B |
1250 |
33.25 |
|
16 |
IS 2062 Gr.B |
1250 |
33.50 |
|
|
Chequerred Coils |
5 – 10 |
IS 2062 Gr.B |
1250 |
33.60 |
|
4 |
IS 2062 Gr.B |
1250 |
33.60 |
|
|
3 |
IS 2062 Gr.B |
1250 |
35.10 |
Note :
1. Freight, Excise Duty (currently at 10%) and other applicable statutory
levies and duties, as applicable on the date of despatch, shall be in addition
to the above.
2. Details of prices for material in other qualities and dimensions can
be obtained from the under mentioned contact details.
3. Above prices are for general information and should not be taken as
sale offer. These prices may be changed by IIL without prior notice. For
further details please contact as per details given below.
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.45.25 |
|
|
1 |
Rs.72.82 |
|
Euro |
1 |
Rs.63.58 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
3 |
|
PAID-UP CAPITAL |
1~10 |
3 |
|
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 |
NO |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
27 |
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.