MIRA
INFORM REPORT
|
Report Date : |
05.11.2011 |
IDENTIFICATION DETAILS
|
Name : |
STERLITE TECHNOLOGIES LIMITED (w.e.f. 14.07.2007) |
|
|
|
|
Formerly Known
As : |
STERLITE OPTICAL TECHNOLOGIES LIMITED |
|
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|
|
Registered
Office : |
Survey No. 68 / 1, Rakholi Village, Madhuban Dam Road, Silvassa – 396
230, Dadar Nagar Haveli |
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Country : |
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Financials (as
on) : |
31.03.2011 |
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Date of
Incorporation : |
24.03.2000 |
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|
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Com. Reg. No.: |
54-000340 |
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Capital
Investment / Paid-up Capital : |
Rs.712.800 Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L31300DN2000PLC000340 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
SRTS01199C |
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PAN No.: [Permanent Account No.] |
AAECS8719B |
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Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchange. |
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Line of Business
: |
Providing Transmission Products and Solutions for Evolving Application
in the Global Telecom and Energy Industries. |
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|
No. of Employees
: |
Not Available |
RATING & COMMENTS
|
MIRA’s Rating : |
A (64) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
Maximum Credit Limit : |
USD 40000000 |
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|
|
Status : |
Good |
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|
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a well established and a reputed company having fine track.
Financial position of the company appears to be sound. Fundamentals are
strong and healthy. Trade relations are reported as fair. Business is active.
Payments are reported to be regular and as per commitments. The company can be considered normal for business dealing at usual
trade terms and conditions. |
NOTES:
Any query related to this report can be made
on e-mail: infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – September 30, 2011
|
Country Name |
Previous Rating (30.06.2011) |
Current Rating (30.09.2011) |
|
|
A1 |
A1 |
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|
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|
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
INFORMATION PARTED BY
|
Name : |
Mr. Anupam Jindal |
|
Designation : |
Chief Financial Officer |
LOCATIONS
|
Registered Office/Factory 1 : |
Survey No. 68 / 1, Rakholi Village, Madhuban Dam Road, Silvassa – 396
230, Dadar Nagar Haveli, India |
|
Tel. No.: |
91-260-6612000 |
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Fax No.: |
91-260-6612013 |
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E-Mail : |
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|
Website : |
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Factory 2 : |
Optical Fiber, E2, E3, MIDC, Waluj, Aurangabad-431136, |
|
Tel. No.: |
91-240-2564599 |
|
Fax No.: |
91-240-2564598 |
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|
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Factory 3 : |
Optical Fiber, AL-23, Shendra MIDC SEZ, |
|
Tel. No.: |
91-240-2622020 |
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Fax No.: |
91-240-2564598 |
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|
|
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Factory 4 : |
Copper Telecom Cables and Structured Data Cables, Survey No. 33 / 1 /
1, |
|
Tel. No.: |
91-260-6452959 |
|
Fax No.: |
91-260-6612122 |
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|
|
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Factory 5 : |
Power Transmission Conductors, Survey No. 99, Rakholi Village,
Madhuban Dam Road, Silvassa – 396230, Union Territory of Dadra and Nagar
Haveli, India |
|
Tel. No.: |
91-260-6612200 |
|
Fax No.: |
91-260-6612260 |
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|
|
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Factory 6: |
Plot 2D, Sector 10, IIE SIDCUL, Haridwar – 249403, |
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Tel. No.: |
91-1334-239463 |
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Fax No.: |
91-1334-239375 |
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Factory 7: |
Burkhamunda, Jharsuguda - 768 202, |
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Factory 8 : |
Power Cables, No. 5, Vardhaman Industrial Estate, Haridwar – 249 402, |
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Sales, Marketing and Representative Offices: |
Located at: ·
·
·
·
·
·
·
·
·
·
|
|
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Corporate Office : |
4th Floor Godrej Millenium 9, |
|
Tel. No.: |
91-20-30514000 |
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Fax No.: |
91-20-26138083 |
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E-Mail : |
DIRECTORS
AS ON 31.03.2011
|
Name : |
Mr. Anil Agarwal |
|
Designation : |
Non - Executive Chairman |
|
|
|
|
Name : |
Mr. Arun Todarwal |
|
Designation : |
Non - Executive and Independent Director |
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|
Name : |
Mr. A. R. Narayanaswamy |
|
Designation : |
Non - Executive and Independent Director |
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|
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|
Name : |
Mr. Haigreve Khaitan |
|
Designation : |
Non - Executive and Independent Director |
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|
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|
Name : |
Mr. Pravin Agarwal |
|
Designation : |
Whole Time Director |
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|
Name : |
Mr. Anand Agarwal |
|
Designation : |
Chief Executive Officer and Whole Time Director |
KEY EXECUTIVES
|
Name : |
Mr. Anupam Jindal |
|
Designation : |
Chief Financial Officer |
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|
|
|
Name : |
Mr. Sandeep Deshmukh |
|
Designation : |
Company Secretary |
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|
Name : |
Mr. K. S. Rao |
|
Designation : |
Chief Operating Officer (Telecom) |
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|
Name : |
Mr. Rajendra Mishra |
|
Designation : |
Chief Operating Officer (Power) |
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|
Name : |
Mr. Mandeep Bhatia |
|
Designation : |
Chief Operating Officer (Telephone Infrastructure) |
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|
Name : |
Mr. Pratik Agarwal |
|
Designation : |
Head – Infrastructure Business |
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|
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|
Name : |
Mr. Prasanth Puliakottu |
|
Designation : |
Chief Information Officer |
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|
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|
Name : |
Mr. Dharmendra Jain |
|
Designation : |
Assistant Vice President – Finance
|
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 30.06.2011
|
Category of Shareholders |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
860,810 |
0.22 |
|
|
4,765,295 |
1.21 |
|
|
5,626,105 |
1.43 |
|
|
|
|
|
|
|
|
|
|
209,402,750 |
53.29 |
|
|
209,402,750 |
53.29 |
|
|
|
|
|
Total shareholding of Promoter and Promoter Group (A) |
215,028,855 |
54.72 |
|
|
|
|
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
23,029,875 |
5.86 |
|
|
21,625,594 |
5.50 |
|
|
850 |
- |
|
|
914,737 |
0.23 |
|
|
8,663,257 |
2.20 |
|
|
54,234,313 |
13.80 |
|
|
|
|
|
|
|
|
|
|
23,798,760 |
6.06 |
|
|
|
|
|
|
|
|
|
|
82,509,697 |
21.00 |
|
|
12,542,772 |
3.19 |
|
|
|
|
|
|
4,824,080 |
1.23 |
|
|
4,245,053 |
1.08 |
|
|
200 |
- |
|
|
11,705 |
- |
|
|
303,527 |
0.08 |
|
|
85,550 |
0.02 |
|
|
133,245 |
0.03 |
|
|
44,800 |
0.01 |
|
|
123,675,309 |
31.47 |
|
|
|
|
|
Total Public shareholding (B) |
177,909,622 |
45.28 |
|
|
|
|
|
Total (A)+(B) |
392,938,477 |
100.00 |
|
|
|
|
|
(C) Shares held by Custodians and against which Depository Receipts
have been issued |
- |
- |
|
|
- |
- |
|
|
- |
- |
|
|
- |
- |
|
|
|
|
|
Total (A)+(B)+(C) |
392,938,477 |
100.00 |
(1) Indian
Individuals / Hindu Undivided Family
Individual shareholders holding nominal
share capital up to Rs.0.100 millionBUSINESS DETAILS
|
Line of Business : |
Providing Transmission Products and Solutions for Evolving Application
in the Global Telecom and Energy Industries. |
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Products : |
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PRODUCTION STATUS (AS ON 31.03.2011)
|
Particulars |
Unit |
Licensed Capacity |
Installed Capacity |
|
Power Transmission Line –
Distribution Conductor ** |
MT |
N.A. |
160000 |
|
Copper Telecom Cables |
CKM |
9500000 |
2828400 |
|
Fiber Optic cables* |
FKM |
5309059 |
4500000 |
|
Optical Fiber |
KM |
12000000 |
12000000 |
|
Broadband Access Networks |
NOS. |
1500000 |
1000000 |
* Based on Average Fibre KM.
** N.A. – Delicenced vide notification no. 477 (E)
Dated 27th July, 1991.
|
Particulars (including for captive
consumption) |
Unit |
Actual Production |
|
Copper Telecom Cables |
CKM |
720524 |
|
Fiber Optic cables |
FKM |
3775878 |
|
Optical Fibre* |
KM |
9130523 |
|
Power Transmission Line –
Distribution Conductor (AAC/ACSR) ** |
MT |
125530 |
* It includes 3,742,671 KM (2,906,150 KM) produced
for captive consumption
** Current Year 140,952 KM (129,036 KM)
GENERAL INFORMATION
|
No. of Employees : |
Not Available |
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Bankers : |
·
Axis Bank ·
Bank of ·
Bank of ·
Bank of ·
Barclays Bank ·
Citibank ·
Corporation Bank ·
DBS Bank ·
EXIM Bank ·
HDFC Bank ·
ICICI Bank ·
Kotak Mahindra Bank ·
Oriental Bank of Commerce ·
Punjab National Bank ·
State Bank of ·
Union Bank ·
Yes Bank |
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Facilities : |
NOTE Working capital loans and Other loans from Banks are secured by
hypothecation of Raw materials, Work-in-Progress, Finished Goods and Sundry
Debtors.
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Banking Relations
: |
-- |
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|
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Auditors : |
|
|
Name : |
S. R. Batliboi and Company Chartered Accountants |
|
|
|
|
Subsidiaries: |
·
Sterlite
Display Technologies Private Limited (formerly known as Sterlite
Infrastructure Private Limited) ·
Sterlite
Infratech Limited ·
East
North Interconnection Company Limited ·
Sterlite
Transmission Projects Private Limited ·
Jabalpur
Transmission Company Limited (*) ·
Bhopal
Dhule Transmission Company Limited (*) ·
Sterlite
Global Ventures ( ·
(*) No transactions have
been entered into with these parties during the year. |
|
|
|
|
Entities where Key Management Personnel /
relative of key management personnel has significant
influence : |
·
Sterlite
Industries ( ·
·
Bharat
Aluminium Company Limited ·
Hindustan
Zinc Limited ·
Sterlite
Energy Limited ·
Vedanta
Aluminium Limited |
|
|
|
|
Investing Company: |
Twin Star Overseas Limited, |
CAPITAL STRUCTURE
AS ON 31.03.2011
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
750000000 |
Equity shares |
Rs.2/- each |
Rs.1500.000 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
356382129 |
Equity Shares |
Rs.2/- each |
Rs.712.800 Millions |
|
|
|
|
|
Of the above:
1.
139781397
(139781397 of Rs.2 each fully paid-up) Equity Shares of Rs.2 each were allotted
to the shareholders of Sterlite Industries (I) Limited upon demerger pursuant
to the scheme of arrangement sanctioned by the Honourable High Court of
Judicature at Bombay, being shares issued for consideration other than cash.
2.
During
the financial year 2009-10, 16125000 Share Warrants were converted into
32250000 fully paid-up Equity Shares of Rs.2 each, which includes 16125000
Equity Shares issued as bonus shares.
3.
During
the year 863619 of Rs.2 each (2159294 Equity shares of Rs.2 each) shares were
issued to employees of the company under ESOP Scheme.
4.
Of the
above Equity Shares 178191065 shares of Rs.2 each were allotted as fully
paid-up bonus shares by utilisation of Rs.356.400 millions from Securities
Premium.
FINANCIAL DATA
[all figures are in
Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
712.800 |
711.000 |
322.700 |
|
|
2] Share Application Money |
271.200 |
271.100 |
0.000 |
|
|
3] Employee Stock Option Outstanding |
29.800 |
39.100 |
52.600 |
|
|
4] Reserves & Surplus |
9345.200 |
8139.100 |
5834.100 |
|
|
5] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
10359.000 |
9160.300 |
6209.400 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
1749.800 |
2323.000 |
4678.900 |
|
|
2] Unsecured Loans |
4447.900 |
1258.600 |
287.000 |
|
|
TOTAL BORROWING |
6197.700 |
3581.600 |
4965.900 |
|
|
DEFERRED TAX LIABILITIES |
660.100 |
601.600 |
559.500 |
|
|
|
|
|
|
|
|
TOTAL |
17216.800 |
13343.500 |
11734.800 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
7061.700 |
6264.300 |
5453.200 |
|
|
Capital work-in-progress |
1607.600 |
569.700 |
1113.500 |
|
|
|
|
|
|
|
|
INVESTMENT |
1088.400 |
1061.100 |
920.100 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
1913.800
|
1709.100
|
1003.700 |
|
|
Sundry Debtors |
8665.000
|
6289.700
|
5458.900 |
|
|
Cash & Bank Balances |
1300.600
|
2097.100
|
778.900 |
|
|
Other Current Assets |
0.000
|
0.000
|
0.000 |
|
|
Loans & Advances |
3503.400
|
1566.600
|
2011.500 |
|
Total
Current Assets |
15382.800
|
11662.500
|
9253.000 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
4872.200
|
4422.200
|
2979.600 |
|
|
Other Current Liabilities |
2685.700
|
1281.300
|
1811.000 |
|
|
Provisions |
365.800
|
510.600
|
214.400 |
|
Total
Current Liabilities |
7923.700
|
6214.100
|
5005.000 |
|
|
Net Current Assets |
7459.100
|
5448.400
|
4248.000 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
17216.800 |
13343.500 |
11734.800 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
|
SALES |
|
|
|
|
|
|
|
Turnover (Net) |
22625.500 |
24316.300 |
22892.300 |
|
|
|
Other Income |
159.700 |
228.800 |
61.600 |
|
|
|
TOTAL (A) |
22785.200 |
24545.100 |
22953.900 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Manufacturing and Other Expenses |
17855.900 |
18130.500 |
18687.200 |
|
|
|
Personnel Expenses |
825.600 |
580.100 |
512.400 |
|
|
|
Selling and Distribution expenses |
930.000 |
783.600 |
756.300 |
|
|
|
Administration and General Expenses |
311.900 |
952.800 |
535.300 |
|
|
|
Research and Development Expenses |
45.700 |
59.800 |
59.600 |
|
|
|
TOTAL (B) |
19969.100 |
20506.800 |
20550.800 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
2816.100 |
4038.300 |
2403.100 |
|
|
|
|
|
|
|
|
|
Less |
INTEREST AND
FINANCE CHARGES (D) |
474.100 |
381.200 |
904.800 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
2342.000 |
3657.100 |
1498.300 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
560.100 |
482.600 |
425.200 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
1781.900 |
3174.500 |
1073.100 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
376.600 |
713.800 |
171.600 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
1405.300 |
2460.700 |
901.500 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
6080.500 |
4073.900 |
3357.000 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
Transfer to General Reserve |
140.600 |
246.100 |
90.200 |
|
|
|
Proposed Dividend on Equity Shares of Rs. 0.50 per share |
196.500 |
177.800 |
80.700 |
|
|
|
Tax on Proposed Dividend |
31.300 |
30.200 |
13.700 |
|
|
|
BALANCE CARRIED
TO THE B/S |
7117.400 |
6080.500 |
4073.900 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
FOB Value of Exports |
6998.500 |
5542.200 |
5925.800 |
|
|
|
FOB Value of Deemed Exports |
928.500 |
2648.600 |
3456.400 |
|
|
TOTAL EARNINGS |
7927.000 |
8190.800 |
9382.200 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
3728.500 |
5936.800 |
5521.100 |
|
|
|
Stores Spares and
Consumables |
122.900 |
104.000 |
74.400 |
|
|
|
Capital Goods |
785.000 |
268.400 |
781.100 |
|
|
TOTAL IMPORTS |
4636.400 |
6309.200 |
6376.600 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
|
|
|
|
|
|
Basic |
3.95 |
7.61 |
2.80 |
|
|
|
Diluted |
3.72 |
7.34 |
2.78 |
|
QUARTERLY RESULTS
|
PARTICULARS |
|
30.06.2011 |
30.09.2011 |
|
Type |
|
1st
Quarter |
2nd
Quarter |
|
Net Sales |
|
5473.300 |
7072.800 |
|
Total Expenditure |
|
5171.400 |
6568.800 |
|
PBIDT (Excl OI) |
|
301.900 |
504.000 |
|
Other Income |
|
138.000 |
31.500 |
|
Operating Profit |
|
439.900 |
535.500 |
|
Interest |
|
218.500 |
207.500 |
|
Exceptional Items |
|
0.000 |
0.000 |
|
PBDT |
|
221.400 |
328.000 |
|
Depreciation |
|
146.300 |
156.000 |
|
Profit Before Tax |
|
75.100 |
172.000 |
|
Tax |
|
22.800 |
45.400 |
|
Provisions and contingencies |
|
0.000 |
0.000 |
|
Profit After Tax |
|
52.300 |
126.600 |
|
Extraordinary Items |
|
0.000 |
0.000 |
|
Prior Period Expenses |
|
0.000 |
0.000 |
|
Other Adjustments |
|
0.000 |
0.000 |
|
Net Profit |
|
52.300 |
126.600 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
PAT / Total Income |
(%) |
6.17
|
10.03
|
3.93 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
7.88
|
13.06
|
4.69 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
7.94
|
17.71
|
7.30 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.17
|
0.35
|
0.17 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
1.36
|
1.07
|
1.61 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.94
|
1.88
|
1.85 |
LOCAL AGENCY FURTHER INFORMATION
PERFORMANCE
Fiscal year
2010-11 closed with revenues of Rs.22630.000 millions, EBITDA of Rs.2820.000
millions, PAT of Rs.1410.000 millions and EBITDA margins of 12%. The telecom
business revenues of Rs.6570.000 millions at an EBITDA margin of 26% and the
power business revenues of Rs.16060.000 millions at an EBITDA margin of 7%.
The Company
achieved the highest sales volumes historically for all its core businesses –
power conductors, optical fibers and telecommunication cables.
During the year,
good Tier-1 clients were added for all businesses, across geographies. Revenue
from international sales in FY11 accounted for Rs.7000.000 millions, which is
31% of net revenues in FY10 and this has been achieved with a right mix of
repeat orders from current clients and addition of new eminent global clients.
Subject has
achieved its target capacity expansion of 160,000 MT for power conductors,
through productivity enhancements at its facilities at Rakholi and Haridwar and
with the setup of a green-field facility at Jharsuguda, Orissa.
The Company’s
ongoing capital project for capacity enhancement of optical fiber to 20 million-km
is well on track for completion and is expected to be fully operational during
FY12.
As part of its
efforts to enhance its global footprint, Subject formed a joint venture company
Jiangsu Sterlite Tongguang Fiber
Company Limited in China to manufacture, market and distribute optical
fiber used in the production of fiber optic cables.
During the year,
Subject increased the breadth of its portfolio by introducing new products and
solutions like bend-free fiber, OPGW cables and FTTx solutions. The Company has
enhanced its intellectual property portfolio with the grant of 7 more patents,
taking the total up to 30.
SHIFTING OF
REGISTERED OFFICE FROM STATE OF
The shareholders
of the Company had approved by postal ballot, shifting of the registered office
of the Company from the State of
SUBSIDIARY
COMPANIES
As at year-end,
the Company has eight Subsidiary Companies, the details of which are given
below:
Sterlite Display
Technologies Private Limited (formally, Sterlite Infrastructure Private
Limited)
During the year,
the Company increased its holding in Sterlite Display Technologies Private
Limited (SDTPL) from 58.70% to 85.34%.
SDTPL initially
had plans to enter into a business of a telecom service provider. The Company
is currently working on various growth opportunities including liquid crystal
displays (LCDs) glass manufacturing and other related products.
Sterlite
Infra-Tech Limited
As reported in the
previous year’s report, Sterlite Infra-Tech Limited (SITL) was floated for
capacity expansion of optical fiber manufacturing under the SEZ scheme. The
manufacturing facility at Shendra,
Sterlite
Transmission Projects Private Limited
During the year,
the Company floated wholly-owned subsidiary viz. Sterlite Transmission Projects
Private Limited (STPPL) with the objective of consolidating all the bulk power
transmission business under one entity.
STPPL has been
aggressively participating in competitive bidding process under Independent
Power Transmission model. STPPL was awarded two mega projects to establish the
Transmission System associated with “System Strengthening Common for Western
Region and Northern Region” and “System Strengthening for Western Region”, by
PFC Consulting Limited, a subsidiary of Power Finance Corporation of India
Limited.
East-North
Interconnection Company Limited
As reported in the
previous year, East-North Interconnection Company Limited (ENICL), a special purpose
vehicle created for the East-North interconnection mega transmission project
was acquired during FY10. The project involves establishment of two 400 kV
Double Circuit transmission lines that would respectively connect the Indian
states of
The project has
been awarded on a ‘Build, Own, Operate and Maintain’ (BOOM) basis, wherein the
transmission lines would be commissioned within 3 years and the Company would
operate and maintain the same for a minimum tenure of 25 years.
During the year,
ENICL successfully achieved the financial closure of Rs.7000.000 millions Debt
Syndication for the said project.
Bhopal Dhule
Transmission Company Limited
STPPL acquired the
entire holding of Bhopal Dhule Transmission Company Limited (BDTCL) from PFC
Consulting Limited, a subsidiary of Power Finance Corporation of
The project has
been awarded on a ‘Build, Own, Operate and Maintain’ (BOOM) basis, wherein the
transmission lines would be commissioned within 3 years and the Company would
operate and maintain the same for a minimum tenure of 35 years thereafter.
Jabalpur
Transmission Company Limited
STPPL also
acquired the entire holding of Jabalpur Transmission Company Limited (JTCL)
from PFC Consulting Limited, a subsidiary of Power Finance Corporation of
The project has
been awarded on a ‘Build, Own, Operate and Maintain’ (BOOM) basis, wherein the
transmission lines would be commissioned within 3 years and the Company would
operate and maintain the same for a minimum tenure of 35 years thereafter.
Jiangsu Sterlite
Tongguang Fiber Company Limited
The Company has
entered into Joint Venture with Tongguang Group of
Sterlite Global
Ventures (
The Company
floated a special purpose vehicle named Sterlite Global Ventures (
MANAGEMENT
DISCUSSIONS AND ANALYSIS
MOBILE DATA
TRAFFIC – IT’S NOT JUST ABOUT SMS ANYMORE
Mobile users
expect to be able to stay connected with family, friends and work in real time
– anywhere and anytime. As smart-phones have become a mainstream product,
mobile communication has evolved into much more than just voice and text
messages.
Users now demand
multi-dimensional services – e-mail, instant messaging, photograph and video
sharing, social networking, blogging and a host of other applications. The
smart phone of today is an ‘Information Swiss knife’.
Conventionally, a
mobile user starts using Entertainment VAS first. As they evolve and become
more mature, comes the usage of information VAS while mCommerce tops the
hierarchy among conventional VAS categories. Mobile Apps, the most recent
category tops the complexity of service as well as need evolved and involved
mobile user. The chart, depicts relation between maturity of mobile user and
complexity of VAS they use.
It is expected
that the growth of mobile data traffic will be at a much faster pace than its
counterparts. Cisco forecasts 90% CAGR growth in mobile data traffic over the
next 5 years.
OPTICAL FIBER: THE
MEDIUM FOR TRANSMITTING HIGH-SPEED DATA
The early form of
optical fiber was developed as early as 1950’s. It was nearly a decade later
that the thought of using optical fibers for communication was conceived,
though the commercial use happened much later. Optical fibers are widely used
in fiber optic communications, which permits transmission over longer distances
and at higher bandwidths (data rates) than other forms of communication.
When they talk
about a network backbone capable of transmitting data across the globe in real
time, the sole medium capable of making it possible is optical fiber. As
communication has evolved over the past two decades, both in quality and
quantity. The case for deploying more fiber has also increased. This can be
better judged by simply having a look at the fiber deployments that have taken
place in the last twenty years. The fiber industry has grown at a steady pace
and is expected to continue along a similar path. As per estimates from CRU,
the global fiber demand last year was about 185 million-fkm. If they observe
the fiber deployment pattern globally over the last 20 years, different regions
have contributed to the growth in fiber demand at periodic intervals depending
upon the stage of network evolution they were in. The last few years have seen
a mammoth growth in fiber deployments in
They believe that
the
SOME KEY
DEVELOPMENTS IN THE GLOBAL TRANSMISSION AND DISTRIBUTION SPACE
The
Russia’s Ministry
of Energy has estimated that the Russian power grids may need RUB 20 Trillion
(US$ 700 billion) investments by 2030, of which RUB 11 Trillion (US$ 385
billion) would be needed in the next ten years.
In
For emerging
economies like
As per
PGCIL, the nodal
transmission utility in the country continues with its mega plan of building a
pan-India, high capacity transmission network in the country. Though
historically, the Company has underachieved from its planned targets, however
we are seeing improvement in % achievement year on year.
In the 12th plan
PGCIL plans to spend Rs.1,200 billion for:
·
Enhancing the capacity of the interregional
transmission grid from 37,000 MVA to 75,000 MVA.
·
Building a High Capacity Transmission Corridor
(HCTC) which will help transport electricity to the main load centres from 48
new IPP s located in coal belt coastal areas and hydroelectric-rich areas.
PGCIL plans to spend Rs.496.3 billion, on HCTC of which Rs.300.7 billion, 60%
of the total, is expected to be spent on transmission lines.
After the State
Electricity Board (SEB) unbundling process, state utilities are also investing
in transmission infrastructure. The state grids are being upgraded or revamped
after years of neglect and lack of investment. Rising power requirements have
forced many State Transmission Utilities (STUs) to set up high capacity
intra-state power transmission systems. Based on the mid-term appraisal of the
11th plan, SEBs are expected to spend Rs.1,835.7 billion on the power sector.
As per preliminary estimates, SEBs will have to spend Rs.1,000 billion on
transmission and distribution infrastructure during the 12th plan.
The opening up of
power sector with the enactment of Electricity Act, 2003 was one of important
steps towards bridging the gap between demand-supply of power in the country.
The Private sector in the country responded with keen interest and has been
very active in investing and setting up new generation facilities.
On similar lines,
the government decided to open up the transmission space for private players by
introducing Independent Private Transmission Company (IPTC) projects. The state
transmission utilities (STUs, SEBs or their successor entities) and the central
transmission utility (Power Grid) identify transmission projects for the
intrastate and the inter-state/interregional transmission of power
respectively.
The STUs and the
Central Transmission Utility (CTU) could invite private companies to implement
these projects through an IPTC or on a joint venture basis. The role of the
IPTC would be to the construct, own and maintain transmission systems.
Operations of the grid, including load despatch, scheduling and monitoring will
be undertaken by the STUs and the CTU at the intrastate and
inter-state/inter-regional levels, respectively. The CTU and STUs would be involved in the development
phase for obtaining project approvals and various regulatory and statutory
clearances.
Opening up of this
space has invited interest of many private players in the country and they are
actively participating in the competitive bidding process to become a part of T
and D infrastructure build up in the country.
In the 11th Plan,
investment of Rs.200000.000 millions has been envisioned from the private
sector directed towards expanding interstate transmission network. Several PPP
projects have been awarded by state utilities including Haryana, Rajasthan,
Subject has been
playing a pivotal role over the last few years in building the Transmission
infrastructure in the country and today is the largest manufacturer globally
for overhead transmission conductors. The Company has also taken the lead to
participate as infrastructure owners by taking a portfolio of 3 Ultra mega
transmission projects (with combined investments of about US$ 1 billion) and is
poised to play a leading role in growing transmission space in the country and
globally.
BOARD OF DIRECTORS
ANIL AGARWAL- NON-EXECUTIVE CHAIRMAN
Anil Agarwal
founded the Sterlite Group in 1976 and has been overseeing its operations since
its inception. He is the Executive Chairman of Vedanta Resources Plc. He is
also Chairman of Sterlite Industries (
ARUN TODARWAL - NON-EXECUTIVE AND INDEPENDENT DIRECTOR
Arun Todarwal,
partner of Todarwal and Todarwal, a Mumbai-based firm of Chartered Accountants,
is a member of The Institute of Chartered Accountants of India. He has a rich
and varied experience spanning over three decades in Management Consultancy,
Finance and Audit.
HAIGREVE KHAITAN - NON-EXECUTIVE AND INDEPENDENT DIRECTOR
Haigreve Khaitan,
partner of Khaitan and Company a Mumbai-based firm of lawyers, holds a
bachelors degree in legislative laws. He has varied experience spanning a
decade in commercial and corporate laws, tax laws, mergers and acquisitions,
restructuring, foreign collaboration and licensing.
PRAVIN AGARWAL - WHOLE-TIME DIRECTOR
Pravin Agarwal has
been closely involved with the Sterlite Group’s operations in
A. R. NARAYANASWAMY - NON-EXECUTIVE AND INDEPENDENT DIRECTOR
A. R.
Narayanaswamy is a Chartered Accountant and Management Consultant providing
Management, Financial and Information Technology consulting services to
Corporates in pharmaceutical, chemical, engineering and hospitality verticals.
His experience spans over three decades.
ANAND AGARWAL – CHIEF EXECUTIVE OFFICER AND WHOLE-TIME DIRECTOR
Anand Agarwal
joined subject in 1995 and has held various positions, including manufacturing,
quality assurance and business development. Prior to joining subject, he worked
with Siemens. He completed his B. Tech in metallurgical engineering from IIT
Kanpur and was awarded Masters and PhD from the Rensselaer Polytechnic
Institute,
CONTINGENT
LIABILITIES:
|
Particulars |
31.03.2011 Rs. in Millions |
|
1. Disputed Liabilities in Appeal |
|
|
a) Sales Tax |
5.900 |
|
b) Excise Duty (Including
Excise duty case in Supreme Court |
2470.700 |
|
c) Customs Duty |
743.100 |
|
d) Service Tax |
24.800 |
|
e) Claims lodged by a Bank
Against the company (*) |
188.700 |
|
f) Claims against the company not
acknowledged as Debt |
0.000 |
|
2. Outstanding amount of Export
obligation against Advance License |
871.900 |
|
3. The company has given Corporate Guarantee to
the Income Tax Department on behalf of group companies. The outstanding
amount is Rs.1140.000 millions (Rs.1140.000 millions) on this account as at
the year-end. The company has given
Corporate Guarantee to Long Term Transmission Customers on behalf of its
subsidiary company. The outstanding amount is Rs.300.000 millions (Rs. Nil)
on this account as at the year-end. |
|
The Company has not provided for disputed Sales
Tax, Excise Duty, Customs Duty and Service Tax arising from disallowances made
in assessments which are pending with Appellate Authorities for its decision.
It is not practicable to indicate the uncertainties
which may affect the future outcome and estimate the financial effect of the
above liabilities.
(*) In an earlier year, one of the Bankers of the
Company had wrongly debited an amount of Rs.188.700 millions, towards import
consignment under Letter of Credit not accepted by the Company, owing to
discrepancies in the documents. The Company has filed the case against the bank
in the High Court of Mumbai. The bank has also filed a claim against the
Company in the Debt Recovery Tribunal. The Company does not believe that any
liability will arise to the Company.
FIXED ASSETS
·
·
Leasehold land
·
Building
·
Plant and Machinery
·
Furniture an Fixtures
·
Data Processing Equipment
·
Office Equipment
·
Electric Fittings
·
Vehicles
·
Software / Licences
FINANCIAL
RESULTS FOR THE QUARTER AND YEAR ENDED JUNE 30, 2011
(RS. IN MILLIONS)
|
Particulars |
|
Quarter Ended 30.06.2011 |
|
|
|
(Unaudited) |
|
Net Revenue |
|
5473.300 |
|
Total
Expenditure |
|
5317.700 |
|
a) (Increase) / Decrease in Stock in Trade and WIP |
|
(369.100) |
|
b) Consumption of Raw materials |
|
4203.700 |
|
c) Staff Cost |
|
213.100 |
|
d) Depreciation and Impairment |
|
146.300 |
|
e) Other Expenditure |
|
1123.700 |
|
Operating Profit before Other Income, Interest and Tax |
|
155.600 |
|
Other Income |
|
138.000 |
|
Profit before Interest and Tax |
|
293.600 |
|
Interest Cost |
|
218.500 |
|
Net Profit before Tax |
|
75.100 |
|
Provision for : |
|
|
|
Current Tax |
|
20.800 |
|
Minimum Alternate Tax |
|
-- |
|
Deferred Tax |
|
2.000 |
|
Net Profit after Tax |
|
52.300 |
|
Paid-up Equity Capital (Face value Rs.2 per share) |
|
785.900 |
|
Reserves excluding revaluation reserves |
|
|
|
Earning Per Share (Rs.)- Basic (not annualised) |
|
0.13 |
|
Earning Per Share (Rs.)- Diluted (not annualised) |
|
0.13 |
|
Aggregate of Public Share Holding |
|
|
|
Number of Shares |
|
177909622 |
|
Percentage of Shareholding |
|
45.3% |
|
Promotors and promoter group Shareholding |
|
|
|
Pledged/Encumbered |
|
|
|
Number of Shares |
|
-- |
|
Percentage of Shares (as a % of the total |
|
-- |
|
shareholding of promoter and promoter group) |
|
|
|
Percentage of Shares (as a % of the total share capital of the
company) |
|
-- |
|
Non-encumbered |
|
|
|
Number of Shares |
|
215028855 |
|
Percentage of Shares (as a % of the total shareholding of promoter and
promoter group) |
|
100% |
|
Percentage of Shares (as a % of the total share capital of the
company) |
|
54.7% |
NOTES
- In terms of
clause 41 of the listing agreement, details of number of investor
complaints for the quarter ended June 30, 2011: Beginning - 0, Received -
77, Disposed off - 77, Pending - 0.
- During the
year 2005-06, the CESTAT had upheld a demand of Rs.1880.000 Millions
(including penalties excluding interest) thereon in the pending Excise
matter. The auditors have expressed their qualification on this matter.
The Company is contesting this case and the matter is pending the decision
of the Hon'ble Supreme Court.
- In accordance
with the nature of the business, the company had changed its inventory
valuation method from “Weighted Average” to “Specific Identification
Method” from March 31, 2011. Had “Specific Identification Method” been
used in the quarter ended June 30, 2010, the inventory as on that date
would have been higher by Rs.25.100 millions and the resultant Net Profit
after tax would have been higher by Rs.31.600 millions.
- The above
results have been reviewed by the Audit Committee. The Board of Directors
at its meeting held on July 29, 2011 approved the above results.
- Previous period figures have been regrouped / rearranged wherever considered necessary.
(Rs. in Millions)
|
Segment
Reporting |
|
Quarter Ended 30.06.2011 |
|
|
|
(Unaudited) |
|
|
|
|
|
Segment Revenue |
|
|
|
Power Transmission Business |
|
3942.300 |
|
Telecom Products and Solutions |
|
1531.000 |
|
Total |
|
5473.300 |
|
|
|
|
|
Segment Results Profit before
Interest, Depreciation and Tax |
|
|
|
Power Transmission Business |
|
82.600 |
|
Telecom Products and Solutions |
|
357.300 |
|
Total |
|
439.900 |
|
|
|
|
|
Profit before
Interest and Tax |
|
|
|
Power Transmission Business |
|
35.200 |
|
Telecom Products and Solutions |
|
258.400 |
|
Total |
|
293.600 |
|
Interest Cost |
|
218.500 |
|
Profit before
Tax |
|
75.100 |
|
|
|
|
|
Capital Employed
(Segment Assets- Segment Liabilities |
|
|
|
Power Transmission Business |
|
6869.400 |
|
Telecom Products and Solutions |
|
9509.000 |
|
Total |
|
16941.800 |
WEB DETAILS
PRESS RELEASES
STERLITE TECHNOLOGIES WINS CONTRACT TO IMPLEMENT A
CENTRAL OFFICE BROADBAND SYSTEM FOR BSNL
System would be
capable of handling 1.6 million broadband connections pan-India
Pune, India –
September 21, 2011: Sterlite Technologies Limited “Sterlite” [BSE: 532374,
NSE:STRTECH], a leading global provider of transmission solutions for the power
and telecom industries, announced that it has received a contract from BSNL,
for deployment of a central office broadband system in telecom circles, pan
The Company would
install and commission the system within FY13 and would manage this network for
7 years thereafter. The system, once completed, would be capable of handling
about 1.6 million broadband connections.
Sterlite has streamlined
its efforts to implement these Central Office broadband systems well within the
required project schedule.
Rahul Sharma, Head
– System Integration Business, of Sterlite Technologies, “Sterlite has
developed the capability to provide comprehensive solutions for the telecom and
broadband sectors. We remain committed to facilitating the propagation of
broadband in
This contract
valued at about Rs.1140.000 millions, is part of a total bank of new orders
valued at about Rs.5600.000 millions that Sterlite has received since July 1,
2011.
STERLITE AWARDS CONTRACTS WORTH RS.5000.000
MILLIONS
Contracts for
sub-stations awarded through International Competitive Bidding (ICB) process
for the Bhopal-Dhule Transmission Project.
Pune, India – September
7, 2011: Sterlite Grid Limited, a wholly owned subsidiary of Sterlite
Technologies Limited, has recently awarded contracts through International
Competitive Bidding (ICB) to Hyundai Heavy Industries Company Limited (South
Korea), Baoding Tianwei Baobian Electric Company Limited (China) and Areva T
and D India Limited for supplies of equipment (like 765 kV Transformers and
Shunt Reactors) and Engineering, Procurement and Construction (EPC) of two 1500
MVA (765/400KV) substations.
The total value of
these contracts amounts to Rs.5000.000 millions. These sub-stations would be
set up at
(Madhya Pradesh)
and at Dhule (
The sub-stations
are part of the transmission systems strengthening project awarded to Sterlite
Grid Limited on a 'Build, Own, Operate and Maintain' (BOOM) basis wherein the
transmission lines would be commissioned within 3 years and the Company would
operate and maintain the same for a minimum tenure of 35 years thereafter.
The project
involves establishment of four 765 kV Single Circuit transmission lines, two
400 kV Double Circuit transmission lines (total line length of 1,000 km) and
two 765/400 kV substations for strengthening the transmission system in the
Indian states of Madhya Pradesh, Maharashtra and
Says Mr Pravin
Agarwal, Wholetime Director - Sterlite Technologies, “We remain committed to
charge our transmission systems as per schedule. The award of these contracts
is a very important milestone in the project execution of the Bhopal-Dhule
Transmission System.”
"We deeply
value our relationship with Sterlite in the emerging BOOT business. We bring in
latest technologies, supported by world class manufacturing facilities in
"Sterlite has
given us the valuable opportunity to supply 765/400 KV Transformers. We are
committed to execute this contract as per the required schedules, with quality
product", says Mr Spence Cho, (Chief General Manager) International Sales
and Marketing - Hyundai Heavy Industries Company, Limited
“It is great to
partner with Sterlite for supply of the reactors for the 765/400kV sub-station
projects in
Sterlite currently
has a portfolio of three projects with a total value of about Rs.40 Billion
(~US$ 0.9 Billion). These transmission systems would evacuate and transmit
power through a network of about 2200 km of transmission lines and 2
substations; in the Indian states of Maharashtra, Gujarat, Madhya Pradesh,
Chattisgarh, West Bengal,
Bihar and
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.49.37 |
|
|
1 |
Rs.78.50 |
|
Euro |
1 |
Rs.67.59 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
8 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT LINES |
1~10 |
7 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
64 |
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a
composite of weighted scores obtained from each of the major sections of this
report. The assessed factors and their relative weights (as indicated through
%) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit transaction.
It has above average (strong) capability for payment of interest and
principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General unfavourable
factors will not cause fatal effect. Satisfactory capability for payment of
interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with full
security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
- |
NB |
New Business |
- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.