MIRA
INFORM REPORT
|
Report Date : |
07.11.2011 |
IDENTIFICATION DETAILS
|
Name : |
MONNET ISPAT AND ENERGY LIMITED (w.e.f 12.01.2006) |
|
|
|
|
Formerly Known As : |
MONNET ISPAT LIMITED |
|
|
|
|
Registered Office : |
Monnet Marg, Mandir Hasaud, Raipur – 492101, Chhattisgarh |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as on) : |
31.03.2010 |
|
|
|
|
Date of Incorporation : |
01.02.1990 |
|
|
|
|
Com. Reg. No.: |
10-009826 |
|
|
|
|
Capital Investment / Paid-up Capital : |
Rs.544.786 Millions |
|
|
|
|
CIN No.: [Company
Identification No.] |
L02710CT1990PLC009826 |
|
|
|
|
TAN No.: [Tax
Deduction & Collection Account No.] |
DELM09084F |
|
|
|
|
PAN No.: [Permanent
Account No.] |
AAACM0501D |
|
|
|
|
Legal Form : |
Public limited liability company. Company’s shares are listed on the
Stock Exchanges |
|
|
|
|
Line of Business : |
Manufacturers of Sponge Iron, Steel and Ferro Alloys. |
|
|
|
|
No. of Employees
: |
100 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
A (64) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
56-70 |
A |
Financial & operational base are regarded healthy. General unfavourable
factors will not cause fatal effect. Satisfactory capability for payment of
interest and principal sums |
Fairly Large |
|
Maximum Credit Limit : |
USD 66000000 |
|
|
|
|
Status : |
Good |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is an established company having fine track. Financial
position of the company appears to be sound. Trade relations are reported as
fair. Business is active. Payments are reported to be regular and as per
commitments. The company can be considered normal for business dealings at usual
trade terms and conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – September 30, 2011
|
Country Name |
Previous Rating (30.06.2011) |
Current Rating (30.09.2011) |
|
|
A1 |
A1 |
|
Risk Category |
ECGC Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
LOCATIONS
|
Registered Office / Factory 1: |
Monnet Marg, Mandir Hasaud, |
|
Tel No. : |
91 - 771 - 2471 334 - 339 |
|
Fax No. : |
91 - 771 - 2471 250 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Corporate Office : |
Monnet House, 11, Masjid Moth, Greater Kailash Part-ll, New
Delhi-110048, |
|
Tel. No.: |
91-11-29218542/46 |
|
Fax No.: |
91-11-29218541 |
|
E-mail : |
|
|
|
|
|
Factory 2 : |
Village - Naharpali, Tehsil Kharsia, District Raigarh, |
|
Tel No. : |
91 – 7762-
275451/ 52 |
|
Fax No. : |
91 – 7762-275455 |
|
E-Mail : |
|
|
|
|
|
Factory 3 : |
Village - Milupara, Block-Tamnar, District Raigarh, |
|
|
|
|
Factory 4 : |
|
|
Tel No. : |
91-6764-224001 / 224002 |
|
Fax No. : |
91-6764-224003 |
|
E-Mail : |
DIRECTORS
As On 31.03.2010
|
Name : |
Mr. Mohinder Singh Gujral |
|
Designation : |
Chairman |
|
|
|
|
Name : |
Mr. Sandeep Jajodia |
|
Designation : |
Executive Vice-Chairman and Managing Director |
|
|
|
|
Name : |
Mr. C. P. Baid |
|
Designation : |
Dy. Managing Director |
|
|
|
|
Name : |
Mr. K.K. Khanna |
|
Designation : |
Executive Director |
|
|
|
|
Name : |
Mr. P.L Nene |
|
Designation : |
Non Executive Director |
|
|
|
|
Name : |
Mr. G.C. Mrig |
|
Designation : |
Non Executive Director |
|
|
|
|
Name : |
Mr. Ajay Relan |
|
Designation : |
Non Executive Director |
|
|
|
|
Name : |
Mr. V.N. Kedia |
|
Designation : |
Non Executive Director |
|
|
|
|
Name : |
Mr. J.P. Lath |
|
Designation : |
Director |
KEY EXECUTIVES
|
Name : |
Mr. M.P. Kharbanda |
|
Designation : |
Company Secretary |
|
|
|
|
Name : |
Mr. Ajay Bhatt |
|
Designation : |
Chief Financial Officer |
|
|
|
|
Name : |
Mr. M.D.
Mundhra |
|
Designation : |
President |
|
|
|
|
Name : |
Mr. Amitabh
Mudgal |
|
Designation : |
Senior Vice President
– Marketing and Corporate Affairs |
|
|
|
|
Name : |
Mr. S.K. Jain |
|
Designation : |
Chief
Executive Officer – Raigarh Plant |
|
|
|
|
Name : |
Mr. Jagdish
Singh |
|
Designation : |
Chief
Executive Officer - |
|
|
|
|
Board Committees |
|
|
Audit Committee |
Mr. M.S. Gujral, Chairman Mr. G.C. Mrig, Member Mr. V.N. Kedia, Member Mr. M.R Kharbanda, Secretary |
|
|
|
|
Investors'
Grievance/ Shareholders
Committee |
Mr. M.S. Gujral Mr. Sandeep Jajodia Mr. J.R Lath |
|
|
|
|
Finance
Committee |
Mr. Sandeep Jajodia Mr. J.R Lath |
|
|
|
|
Executive
Committee |
Mr. Sandeep Jajodia Mr. J.R Lath |
|
|
|
|
Remuneration
Committee |
Mr. M.S. Gujral Mr. G.C. Mrig Mr. J.R Lath |
|
|
|
|
Share Transfer Committee |
Mr. J.R Lath Mr. V. N. Kedia Mr. M.R Kharbanda |
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 |
|
|
|
|
|
|
|
|
254448 |
0.40 |
|
|
25495625 |
39.63 |
|
|
6046168 |
9.40 |
|
|
6046168 |
9.40 |
|
|
31796241 |
49.42 |
|
|
|
|
|
Total shareholding of Promoter and Promoter Group (A) |
31796241 |
49.42 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
1154772 |
1.80 |
|
|
101395 |
0.16 |
|
|
1564332 |
2.43 |
|
|
20652152 |
32.10 |
|
|
23474551 |
36.49 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
6991250 |
10.87 |
|
|
|
|
|
|
1717094 |
2.67 |
|
|
222282 |
0.35 |
|
|
136389 |
0.21 |
|
|
69075 |
0.11 |
|
|
63008 |
0.10 |
|
|
2306 |
-- |
|
|
2000 |
-- |
|
|
9067015 |
14.09 |
|
Total Public shareholding (B) |
32541566 |
50.58 |
|
Total (A)+(B) |
64337807 |
100.00 |
|
(C) Shares held by Custodians and against which Depository Receipts
have been issued |
-- |
-- |
|
|
-- |
-- |
|
|
-- |
-- |
|
|
-- |
-- |
|
Total (A)+(B)+(C) |
64337807 |
-- |
(1) Indian
Individuals / Hindu Undivided Family
Directors/Promoters & their Relatives
& FriendsBUSINESS DETAILS
|
Line of Business : |
Manufacturers of Sponge Iron, Steel and Ferro Alloys. |
||||||||||
|
|
|
||||||||||
|
Products : |
|
PRODUCTION STATUS (As on 31.03.2010)
|
Particulars |
Unit |
|
|
|
|
|
|
* Installed
Capacity at |
|
|
|
-Sponge Iron MS /SS Products |
MT |
300000 |
|
a) - Ingots & Billets |
MT |
300000 |
|
b) - Structural Steel |
MT |
200000 |
|
- Ferro Alloys** |
MT |
58400 |
|
- Power |
MW |
60 |
|
|
|
|
|
* Installed
Capacity at Raigarh |
|
|
|
- Sponge Iron |
MT |
500000 |
|
- Power |
MW |
90 |
|
|
|
|
|
Production |
|
|
|
- Sponge Iron |
MT |
710044 |
|
- MS /SS Products |
MT |
115325 |
|
-Structural Steel |
MT |
90714 |
|
- Ferro Alloys |
MT |
0 |
|
-Coal |
MT |
1000119 |
|
- Power |
‘000 Units |
1020661 |
* As certified by the Management and
relied upon by the Auditors being a technical matter.
** Includes 12000 MT on Lease
GENERAL INFORMATION
|
No. of Employees : |
100 (Approximately) |
||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Bankers : |
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Facilities : |
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
O.R Bagla and Company Chartered Accountants |
|
Address : |
|
|
|
|
|
Associates : |
|
|
|
|
|
Subsidiaries : |
|
|
|
|
|
significant
influence : |
|
|
|
|
|
Subsidiary of Subsidiaries
: |
|
|
|
|
|
Joint Ventures : |
|
CAPITAL STRUCTURE
As on 30.12.2010
Authorised Capital :
Rs.1320.000 Millions
Issued, and Subscribed Capital :
Rs.643.378 Millions
AS ON 31.03.2010
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
112000000 |
Equity Shares |
Rs.10/- each |
Rs.1120.000 Millions |
|
20000000 |
Add: Equity Shares |
Rs.10/- each |
Rs.200.000 Millions |
|
|
Total |
|
Rs. 1320.000
Millions |
Issued, and Subscribed Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
52268013 |
Equity Shares |
Rs.10/- each |
Rs. 522.696
Millions |
Note:
The Board of
Directors at their Meeting held on 23-10-2008 had announced buy back of its
fully paid equity shares from existing shareholders and beneficial owners in
accordance with the relevant provisions of Companies Act, 1956 and Securities
and Exchange Board of India (Buy Back of Securities) Regulations, 1998 at a
price not exceeding Rs. 300/- per share. The Company opted to implement the buy
back through the methodology of open market purchases through stock exchange
and the maximum offer size aggregated to Rs. 750.000 millions representing
7.41% of the Company's paid up capital and free reserves as on 31st March,
2008. During the current year, the Company has bought back 96 equity shares of
Rs. 10/- each at an average price of Rs. 185.46 per share and extinguished 1500
shares bought back in last year. The difference between the nominal value and
amount spent for
buy back, amounting to Rs. 16845/- has been appropriated from the share premium
account.
The Company has
transferred Rs. 0.001 millions from General Reserve to Capital Redemption
Reserve which represented the nominal value of shares bought back during the
year.
Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
52259609 |
Equity Shares |
Rs.10/- each |
Rs. 522.596 Millions |
|
|
Add : Shares Forfeited |
|
Rs. 0.172 Million |
|
Less : |
|
|
|
|
1596 |
Equity Share [bought back and extiguished during the year in accordance with
Section 77A of the Companies Act, 1956] |
Rs.10/- each |
(Rs. 0.015 Million) |
|
|
|
|
|
|
52258013 |
Equity shares |
Rs.10/- each |
Rs. 522.752 Millions |
|
Add |
|
|
|
|
2203339 |
Equity Share Suspense Account (to be issued pursuant to scheme of amalgamation of Mounteverest Trading and Investment Limited with Monnet Ispat and Energy Limited.) |
Rs.10/- each |
Rs. 22.033 Millions |
|
|
Total |
|
Rs. 544.786
Millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
544.786 |
479.631 |
479.972 |
|
|
2] SUBSCRIPTION AGAINST SHARE WARRANTS |
268.825 |
0.000 |
209.250 |
|
|
3] Reserves & Surplus |
15916.860 |
12383.016 |
10198.362 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
16730.471 |
12862.647 |
10887.584 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
12509.230 |
10168.542 |
9456.668 |
|
|
2] Unsecured Loans |
2440.606 |
3083.256 |
1524.070 |
|
|
TOTAL BORROWING |
14949.836 |
13251.798 |
10980.738 |
|
|
DEFERRED TAX LIABILITIES |
1195.789 |
1139.522 |
908.482 |
|
|
|
|
|
|
|
|
TOTAL |
32876.096 |
27253.967 |
22776.804 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
11283.170 |
11268.854 |
10373.012 |
|
|
Capital work-in-progress |
7212.132 |
3096.626 |
2661.186 |
|
|
|
|
|
|
|
|
INVESTMENT |
5454.039 |
2156.279 |
1384.070 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
2188.051
|
1844.559
|
2217.080 |
|
|
Sundry Debtors |
1288.661
|
1097.324
|
1050.925 |
|
|
Cash & Bank Balances |
2052.423
|
2455.848
|
3708.335 |
|
|
Other Current Assets |
0.000
|
0.000
|
0.000 |
|
|
Loans & Advances |
5898.310
|
6827.116
|
3376.720 |
|
Total
Current Assets |
11427.445
|
12224.847
|
10353.060 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
1500.906
|
1436.826
|
1208.247 |
|
|
Other Current Liabilities |
302.131
|
282.312
|
244.273 |
|
|
Provisions |
881.861
|
599.342
|
542.004 |
|
Total
Current Liabilities |
2684.898
|
2318.480
|
1994.524 |
|
|
Net Current Assets |
8742.547
|
9906.367
|
8358.536 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
184.208 |
825.841 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
32876.096 |
27253.967 |
22776.804 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
14806.952 |
15487.259 |
11590.691 |
|
|
|
Other Income |
317.501 |
476.665 |
483.699 |
|
|
|
TOTAL (A) |
15124.453 |
15963.924 |
12074.390 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Material, Manufacturing and Others |
8502.298 |
9966.914 |
8550.268 |
|
|
|
Salaries, Wages and Amenities |
733.427 |
608.163 |
408.976 |
|
|
|
Repair and Maintenance |
91.789 |
56.274 |
48.356 |
|
|
|
Administrative, Selling and Other Expenses |
620.440 |
664.330 |
519.133 |
|
|
|
Loss on |
0.000 |
157.039 |
0.000 |
|
|
|
Miscellaneous Expenditure W/Off |
184.208 |
0.000 |
0.000 |
|
|
|
Increase/Decrease In Stocks |
218.961 |
444.878 |
(455.390) |
|
|
|
TOTAL (B) |
10351.123 |
11897.598 |
9071.343 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
4773.330 |
4066.326 |
3003.047 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
743.677 |
706.045 |
350.521 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
4029.653 |
3360.281 |
2652.526 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
716.655 |
653.038 |
444.851 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
3312.998 |
2707.243 |
2207.675 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
621.955 |
547.202 |
546.041 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
2691.043 |
2160.041 |
1661.634 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
6036.554 |
4434.255 |
3224.025 |
|
|
|
|
|
|
|
|
|
|
BALANCE
B/F ON AMALGAMATION |
116.427 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
270.000 |
220.000 |
167.000 |
|
|
|
Transfer to Debenture Redemption Reserve |
172.049 |
57.200 |
0.000 |
|
|
|
|
|
|
|
|
Less |
Dividend |
|
|
|
|
|
|
|
- Proposed
Dividend on Equity Shares |
285.876 |
239.790 |
123.111 |
|
|
|
- Interim Dividend on Equity Shares |
0.000 |
0.000 |
119.980 |
|
|
|
- Corporate Dividend Tax |
48.585 |
40.752 |
41.313 |
|
|
BALANCE CARRIED
TO THE B/S |
8067.514 |
6036.554 |
4434.255 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
FOB Value of Exports |
466.427 |
511.714 |
1696.919 |
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
-Capital Goods including Spares etc. |
68.217 |
255.185 |
264.363 |
|
|
|
-Raw Material etc. |
10.054 |
136.712 |
17.591 |
|
|
TOTAL IMPORTS |
|
391.897 |
281.954 |
|
|
|
|
|
|
|
|
|
|
Basic Earnings
Per Share (Rs.) |
53.64 |
42.98 |
NA |
|
|
|
Diluted Earnings
Per Share (Rs.) |
47.73 |
39.02 |
NA |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2010 |
30.09.2010 |
31.12.2010 |
31.03.2011 |
30.06.2011 |
|
|
1st Quarter |
2nd Quarter |
3rd Quarter |
4th Quarter |
5th Quarter |
|
Net Sales |
4203.800 |
3606.500 |
3471.400 |
4455.500 |
4271.700 |
|
Total Expenditure |
2991.100 |
2559.500 |
2362.200 |
3169.800 |
3109.200 |
|
PBIDT (Excl OI) |
1212.700 |
1047.000 |
1109.200 |
1285.700 |
1162.500 |
|
Other Income |
20.200 |
74.900 |
64.900 |
64.500 |
112.000 |
|
Operating Profit |
1232.900 |
1121.900 |
1174.100 |
1350.200 |
1274.800 |
|
Interest |
143.800 |
119.300 |
53.700 |
180.900 |
132.000 |
|
Exceptional Item |
0.000 |
0.000 |
0.000 |
0.000 |
0.000 |
|
PBDT |
1089.100 |
1002.600 |
1120.400 |
1169.300 |
1142.500 |
|
Depreciation |
181.600 |
184.000 |
188.800 |
180.400 |
185.900 |
|
Profit Before Tax |
907.500 |
818.600 |
931.600 |
988.900 |
956.600 |
|
Tax |
180.400 |
162.600 |
229.800 |
223.200 |
225.100 |
|
Provisions and contingencies |
0.000 |
0.00 |
0.00 |
0.000 |
0.000 |
|
Profit After Tax |
727.100 |
656.000 |
701.800 |
765.700 |
731.500 |
|
Extraordinary
Items |
0.000 |
0.000 |
0.000 |
0.000 |
0.000 |
|
Prior Period
Expenses |
0.000 |
0.000 |
0.000 |
0.000 |
0.000 |
|
Other Adjustments |
0.000 |
0.000 |
0.000 |
0.000 |
0.000 |
|
Net Profit |
727.100 |
656.000 |
701.800 |
765.700 |
731.500 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
PAT / Total Income |
(%) |
17.79
|
13.53
|
13.76 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
22.37
|
16.96
|
18.28 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
14.59
|
11.52
|
10.65 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.20
|
0.21
|
0.20 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
1.05
|
1.21
|
1.19 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
4.26
|
5.27
|
5.19 |
LOCAL AGENCY FURTHER INFORMATION
HISTORY
The Company formerly known as Monnet Ispat Limited (MIL) was
incorporated on 1st February 1990. The Company was promoted jointly by Sandeep
Jajodia and Jindal Strips, its principal activities are to manufacture and
market Sponge Iron, Steel and Ferro Alloys. In addition, subject is engaged in
mining of coal and power generation for captive consumption. For the
manufacturing purpose, the company has two workstations in Chattisgarh state.
The
Company Performance
During the year, the profit after tax rose to 2691.000 millions
(previous year Rs. 2160.000 millions) registering a growth of 24.58% in-spite
of decline in sales by 4.39% to 14807.000 millions as a result of Company's
continuing efforts to reduce its cost of production. However, the Company had
to discontinue the operations of its Ferro Alloys Division since the cost of production
has gone higher than the market price. Ferro Alloys production is highly power
intensive and consequently, the company was able to sell the surplus power in
the open market yielding high returns.
Expansion Plans
The Company is implementing a steel project to produce 1.5 MTPA of Flat
and Long products in equal proportions. Besides, additional capacity of power
is also being implemented to fully support the power requirement of expanded
capacity. The steel expansion has been designed to be fully integrated to raw
materials like coal and iron ore. Raw material risk arrangement in terms of
pricing volatility is mitigated through captive availability from Mines and
Backward integration facilities. Steel production would be highly value added
and improve the operating margins.
Merger of Mounteverest Trading and Investment Limited into the company
It was proposed to merge Mounteverest Trading and Investment Limited
(MTIL), a Group Company, into Monnet Ispat and Energy Limited. The reasons for
the merger are that MTIL has made investment in a Company which has similar
line of activity as of MIEL. Therefore, it was thought prudent from the point
of view of the interest of various stakeholders and in compliance with the best
practices of Corporate Governance to bring the investment under the Balance
Sheet of Monnet Ispat and Energy Limited
The Hon'ble High Court of Chhattisgarh has approved the merger on
09.11.2010 and making the merger effective from 01.04.2009. Accordingly, the
Company is presenting the merged Annual Accounts for the year ended on
31.03.2010. Other post merger formalities have commenced.
MANAGEMENT DISCUSSION AND ANALYSIS
Industrial Structure and Developments / Risks and Concerns
The Global Crude Steel production during 2009 was 1220 million tons
compared to 1326 million tons in 2008 reflecting a negative growth of 8%. As
compared to that, the Indian Crude Steel production marginally rose from 55.1
million ton to 56.6 million tons next to
Opportunities And Threats / Outlook
The steel industry
has come to be completely dependant on the firm, stable and competitive pricing
of Raw Materials. Raw Material availability continues to be a major challenge
which makes it extremely important to either generate captive sources of raw
materials or have long term sustainable and viable raw material tie ups for
optimizing the profitability. Coal and Iron Ore, the key Raw Materials would be
critical for ensuring the growth of the company in future. The Company is
benefited by the in-house availability of all the raw materials going forward.
The steel
expansion at Raigarh has been designed to make it a completely integrated
facility while the company already has the availability of the Coal, the Iron
Ore requirement on the enhanced capacity is proposed to be met through the
captive mines and also setting up facilities which would substantially offset
the impact of high prices of Iron Ore from the market. Therefore, sensitivity
of operational performance attributable to the raw material pricing and
availability has been adequately addressed in the ongoing expansions.
The company is also increasing the capacity of power to ensure full
availability of captive power for the proposed steel operations.
The expansion in
the steel capacity is progressing as per schedule and will catapult the Company
into major steel producing company in the country. The main threat to the
current program lies in obtaining the regulatory clearances for the mines and
timely execution of the expansion.
The outlook of the
Company based on the above initiatives is quite optimistic. It is expected that
the efforts will yield the visible impact on the expansion of revenues and
profitability.
Segment wise or Product wise Performance
During the year , the sponge iron production grew by 18% to 710044 MT,
Structural Steel production grew by 13% to 90714 MT and Power Generation grew
by 48% to 1020661000 Units. Production in Coal Division was at the same level
as in previous financial year but the production of M.S./S.S. Products saw a
decline of 16% to 115325.
Discussion on Financial Performance with respect to Operational
Performance
The Company is continuing to make cost cutting efforts to keep itself at
an advantageous position vis-ŕ-vis its peers in the industry. The Company
expects that its expanded capacity in sponge iron division and in power
division, that were put into commercial operation, will further strengthen the
bottom line.
Material Developments in Human Resources/Industrial Relations front
Industrial relations in the Company are satisfactory. The relations with
the labour are cordial. The operations of the plant are under the charge of independent
Chief Executive Officers, who have rich experience and qualifications in the
field.
CONTINGENT LIABILITY
|
Contingent Liabilities not provided for * |
Rs in Millions
[As on 31.03.2010] |
|
In respect of disputed Excise Demands |
108.482 |
|
In respect of disputed Sales Tax Demand |
112.158 |
|
In respect of disputed Entry Tax Demand |
49.496 |
|
In respect of disputed Demands for water charges by Water Resources
Division. |
27.968 |
|
Other claims against the Company not acknowledged as debt. |
11.018 |
|
In respect of electricity Duty on generation of power |
54.917 |
|
*Does not include matters dealt with elsewhere in the notes on
accounts |
|
UNAUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED
ON 31st MARCH, 2011
Rs in Millions
|
Sl. No. |
Particulars |
QUARTER ENDED (Unaudited) |
YEAR ENDED (Unaudited) |
|
|
|
31.03.2011 |
31.03.2011 |
|
|
|
|
|
|
1 |
Gross Sales |
4832.600 |
16955.500 |
|
|
Less Excise Duty |
377.100 |
1218.300 |
|
|
(a) Net Sales / Income from Operations |
4455.500 |
15737.200 |
|
|
(b) Other Operating Income |
0.000 |
0.000 |
|
|
Total Income |
4455.500 |
15737.200 |
|
2 |
Expenditure |
|
|
|
|
a) Increase / Decrease in stock in trade and work in progress |
(143.200) |
(426.000) |
|
|
b) Consumption of Raw Materials |
2626.100 |
9033.400 |
|
|
c) Purchase of Traded goods |
0.000 |
11.500 |
|
|
d) Employees Cost |
197.700 |
740.200 |
|
|
e) Depreciation |
180.400 |
734.800 |
|
|
f) Power & Fuel |
126.800 |
438.500 |
|
|
g) Other Expenditure |
362.400 |
1285.000 |
|
|
Total |
3350.200 |
11817.400 |
|
3 |
Profit from Operations before Other Income, Interest & Exceptional
Items (1-2) |
1105.300 |
3919.800 |
|
4 |
Other Income |
64.500 |
224.500 |
|
5 |
Profit before Interest & Exceptional Items (3+4) |
1169.800 |
4144.300 |
|
6 |
Interest |
180.900 |
497.700 |
|
7 |
Profit after Interest but before Exceptional Items (5-6) |
988.900 |
3646.600 |
|
8 |
Exceptional Items |
0.000 |
0.000 |
|
9 |
Profit (+) / Loss (-) from Ordinary Activities before tax (7+8) |
988.900 |
3646.600 |
|
10 |
Tax expenses |
|
|
|
|
a) Current Tax |
208.200 |
736.000 |
|
|
b) Fringe Benefit Tax |
0.000 |
0.000 |
|
|
c) Defferred Tax |
15.000 |
60.000 |
|
|
Total |
223.200 |
796.000 |
|
11 |
Net Profit (+) / Loss (-) from ordinary Activities after tax (9-10) |
765.700 |
2850.600 |
|
12 |
Extraordinary Item (net of tax expenses) |
0.000 |
0.000 |
|
13 |
Net Profit (+) / Loss (-) for the period (11-12) |
765.700 |
2850.600 |
|
14 |
Cash Profit |
|
|
|
15 |
Paid-up Equity Share Capital (Rs.10/- per share) |
643.400 |
643.400 |
|
16 |
Reserves excluding Revaluation Reserve as per balance sheet of
previous accounting year |
|
|
|
17 |
Earnings Per Share (EPS) (Rs.) (not annualized) |
|
|
|
|
(a) Basic EPS before & after Extraordinary items |
11.90 |
44.31 |
|
|
(b) Diluted EPS before & after Extraordinary items |
11.90 |
44.31 |
|
18 |
Public Shareholding - No. of Shares |
32541566 |
32541566 |
|
|
- Percentage of Shareholding |
50.58 |
50.58 |
|
19 |
Promoters and Promoter Group Shareholding |
|
|
|
|
a) Pledge / Encumbered |
|
|
|
|
- Percentage of Shares (as a % of the total share capital of the
company) |
0.00 |
0.00 |
|
|
- Percentage of Shares (as a % of the total share capital of the
company) |
0.00 |
0.00 |
|
|
b) Non-encumbered |
|
|
|
|
- Number of shares |
31796241 |
31796241 |
|
|
- Percentage of Shares (as a % of the total shareholding of the Promoter
and Promoter group) |
100.00 |
100.00 |
|
|
- Percentage of Shares (as a % of the total shareholding of the
Promoter and Promoter group) |
49.42 |
49.42 |
Notes:
1.
These results were taken on record by the Board of
Directors in its meeting held on 12th May, 2011 after limited review
by the auditors and review by the Audit Committee of the Company
2.
There were 34 complaints under process as on 1st
January, 2011. During the quarter, 51 complaints were received. 61 complaints
were disposed off before the end of the quarter and 24 complaints are in the
process of being resolved
3.
Previous figures have been regrouped/rearranged,
wherever necessary
STATEMENT OF ASSETS
AND LIABILITY AS AT 31ST MARCH, 2011
(Rs. In Millions)
|
Particulars |
31.03.2011 |
|
SOURCES OF FUNDS |
|
|
Shareholders'
Fund |
|
|
a) Share Capital |
643.600 |
|
b) Subscription
Against Share Warrant |
0.000 |
|
c) Reserves and
Surplus |
20670.700 |
|
LOAN FUNDS |
26755.200 |
|
Deferred Tax
Assets/(Liabilities) |
1255.800 |
|
TOTAL |
49325.300 |
|
|
|
|
Fixed Assets |
25931.000 |
|
Investments |
5890.800 |
|
Current Assets,
Loans and Advances |
|
|
a) Inventories |
3812.00 |
|
b) Sundry
Debtors |
1918.100 |
|
c) Cash and Bank
Balances |
6488.700 |
|
d) Other Current
Assets |
0.000 |
|
e) Loans and
Advances |
8982.200 |
|
Less : Current
Liabilities and Provisions |
|
|
a) Liabilities |
2968.500 |
|
b) Provisions |
729.000 |
|
Net Current
Assets |
17503.500 |
|
Miscellaneous
Expenditure (Not Written Off or Adjusted) |
0.000 |
|
Total |
49325.300 |
FIXED ASSETS
- Land and Site
Development
- Railway
Siding
- Building
- Plant and
Machinery
- Furniture and
Fixtures
- Vehicle
AS PER WEBSITE DETAILS
PROFILE:
Subject is one of the few companies that have
fully indigenized and imbibed the technology for Sponge Iron manufacturing. By
leveraging the backward and forward integration of activities and successfully implementing
100% indigenous technology, MIEL, in a short span of time has emerged as one of
the leading Steel and Ferro alloys manufacturer in the country.
Subject is
The company is further expanding the
capacities of it’s steel and sponge Iron making facilities and setting up green
field steel plants in Raigarh (Chhattisgarh) and Angul (Orissa) which would
propel it’s total steel capacity to 3.0 MTPA and Sponge Iron to 2.3 MTPA by
2010-11.
We are one of the major manufacturers of Ferro
alloys in the country with current capacity of 70000 MTPA.
Subject brings with an advantage of
understanding the entire value chain from mining of raw material to producing
the finished product and feels the pulse of the market. It is a realization
leader in all the categories in which it operates.
CORPORATE:
Subject is the flagship company of the well diversified Monnet Group.
The Group currently manages manufacturing units for Sponge
Iron, Steel Melting and Rolling Mill, Ferro- Alloys Plant, Power
Generation units, Mining and Mineral Beneficiation of Coal,
In addition to its current thrusts, the group has envisaged ambitious growth plans in diverse sectors and has devised strategic partnerships with world leaders to continue forays into sectors viz clean coal technologies, port development and oil and gas sectors.
Business Description
Subject is principally engaged in
manufacturing sponge, steel and ferro alloys. The Company operates in three
segments: iron and steel, power, and others. It manages manufacturing units for
sponge iron, steel melting and rolling mill, ferro-allow plant, power
generation units, mining and mineral beneficiation of coal, iron ore and other
minerals. It has a combined capacity of 0.86 million tons per annum of sponge
iron, 0.3 million tons per annum of steel, 0.06 million tons per annum of ferro
alloys and power generation facility of 150 megawatts besides running an
underground coalmine in the Country. During the fiscal year ended March 31,
2010, it produced 71,004.4 million metric tons of sponge iron, 11,532.5 million
metric tons of M.S./S.S. products, 9,071.4 million metric tons of structural
steel and 100,011.9 million metric tons of coal. In March 2011, the Company’s
Monnet Global Limited acquired Indonesian Coal Company- PT Sarwa Sembada Karya
Bumi. For the fiscal year ended 31 March 2010, Subject's revenues decreased 3%
to RS15.65B. Net income increased 23% to RS2.62B. Revenues reflect an decrease
in gross sales and lower other income. Net income was offset by lower
increase/decrease in stock in trade and work in progress, decreased consumption
of materials, lower purchase of traded goods, decreased power and fuel and
higher operating margin.
Board of Directors
Mr. Mohinder Singh Gujral - Independent Non-Executive Chairman of the
Board
Mr. Mohinder Singh Gujral is the Independent
Non-Executive Chairman of the Board of Subject He is the former Chairman of Railway
Board and the former Chairman of Coal India Limited. He has 62 years of
experience in managing capital and labour intensive enterprises, including one
of the railway networks in the world. He holds a degree from
Mr. C. P. Baid - Deputy Managing Director, Director
Mr. C. P. Baid has been appointed as Deputy
Managing Director, Director of subject with effect from November 08, 2010. He
is having experience of almost 36 years, is gold medalist from the 1974 batch
of BE (Hons) Mechanical Engineering Practice from B.I.T.S Pilani with an MBA in
project management, he has been a key management resource with Metal and Mining
energy, Vedanta Resources Plc since 2001, their acquired companies like MALCO
in Tamil Nadu as President 2001-2003, BALCO in Chhattisgarh as President and
Whole Time Director 2003-2006, Konkola Copper Mines Plc in Zambia as Director -
Operations 2007-08, CEO sterlite energy 2008-09 and Director- Karnataka Mining
Operations of seas Goa. In past he has worked with various organizations of
repute like Southern Iron and Steel Company Atul Limited, Hindustan Unilever
Limited and with Engineers India Limited where he started his carrier.
Mr. V. N. Kedia - Non-Executive Director
V. N. Kedia is Non-Executive Director of
subject Mr. Kedia is a graduate and working as General Manager (Commercial) in
a Group Company. He has worked with Birla Cottan Spinning and Weaving Mills
Limited Having over 38 years experience in the fields of project development,
stores, Maintenance and procurement divisions. His Key competencies are in the
areas of the Purchase and Commercial affairs. Other directorships are: 1.
Monnet Power Company Limited 2. Monnet Cement Limited.
Mr. K. K. Khanna - Executive Director
Mr. K. K. Khanna is Executive Director of
subject Mr Khanna is BE (Mech.) from BITS, Pilani, B.E. (Engg.) gold medalist
from IIIE, a Law Graduate and an MBA. After joining SAIL in 1971, he has worked
at various positions and retired as Director (Technical) in 2007. He was key
player in the turn around of SAIL from a loss making company till 2002-03 to a
Company reporting profits of 1550 US$ in 2007.
Mr. J. P. Lath - Non-Executive Director
Mr. J. P. Lath is Non-Executive Director of
Subject He is a Graduate and was appointed to the Board on 30th January, 2006.
He include Liaisoning with State / Central Government Departments for procuring
registrations, licenses, sanctions and approvals and entering into MoUs and
Agreements with Stale Governments under public sector undertakings. He is also
well versed in legal matters and looks after complionces of various stalutes
applicable to manufacturing units of large scale. He has been Director of
Monnet Industries Limited, Manret Sugar Limited, Mounteverest Trading and
Investment Limited and Monnet Mining Company Private Limited Having over 34
years experience in making statutory compliances of manufacturing unit, making
liaison with various Central/ State Government Departments for obtaining
licenses, permissions, NoC etc. His other directorships are: Monnet Sugar
Limited 2. Monnet Industries Limited 3. Monnet Mining Company Limited
Mr. G. C. Mrig - Non-Executive Independent Director
Mr. G. C. Mrig is Non-Executive Independent
Director of Subject, since 30th June 1997. His qualifications include AISM (Mining)
BSc. (Hon. in Mining) Pickering Medalist,
Mr.
Ajay Relan - Non Executive Director
Mr. Ajay Relan is Non Executive Director of
subject He has been appointed as additional director on the Board of Directors
of the Company from 9th August, 2010. He is an MBA from Indian Institute of
Management, Ahmedabad. He led Citigroup's Citi Ventures India as its Managing
Director. After leaving Citibank, he floated CX Advisors Private Limited and is
providing investment advisory services to private equity firms across the
Globe. Other directorships 1. Suzlon Energy Limited 2. HT Media Limited 3. HT
Media Ventures Limited
Mr. Gopal Tiwari - Independent Director
Mr.
Gopal Tiwari has been appointed as an Independent Director of Monnet
Ispat Limited with effect from 16 May, 2011. He is an Ex-Chairman of
Chhattisgarh State Electricity Board.
PRESS RELEASE:
Chhattisgarh: Monnet Ispat restrained from using river water
18 October 2011
A local court here has restrained Monnet Ispat
and Energy Limited from using water of Mand river in the district
Sub-Divisional Magistrate O P Varma today said
the company was found to have been drawing water from the river without
permissions
The company had been asked to stop drawing
water forthwith, he said
Residents of Doomarpali village in the
district had last week complained to the administration that the company was
pumping out water in a clandestine manner
Raigarh collector Amit Katariya had ordered a
probe
According to the company officials, recent
floods had damaged its pipeline, so it had to draw water from the river
Hajigak bids open, firms cross fingers
13 September 2011
The bid submitted by a consortium of Indian
steel-mining companies led by Steel Authority of India Limited for mining
concessions of the Hajigak Iron Ore Mines located near Bamiyan in
NMDC, RINL, JSW, JSPL, JSW Ispat and Monnet
Ispat comprise the other members of the Indian consortium.
The consortium has bid for all the four blocks
at Hajigak offered by
The five other bids submitted by parties from
various countries for the Hajigak mines which are estimated to have a reserve
of 1.8 billion tonnes of high-quality magnetite with 62-63 per cent iron
content, include ACATAC, LLC of the USA (3 blocks), Behin-Sanate Diba of Iran
(4 blocks), Gol-e-Gohar Iron Ore of Iran (1 block), Kilo Goldmines Limited. of
The Indian consortium has majority stake by
public sector companies with SAIL, NMDC and RINL holding a combined stake of 56
per cent. SAIL being the lead partner holds an equity stake of 20 per cent
while NMDC and RINL hold 18 per cent each. Among private players JSW and JSPL
hold 16 per cent each, while JSW Ispat and Monnet Ispat and Energy hold 8 per cent
and 4 per cent stake, respectively.
Upon receiving the news of bid opening, SAIL
Chairman C.S. Verma said, "This is the first time that Indian public and
private sector companies have come together to jointly bid for an iron ore
asset abroad. With
As per the Request for Proposal (RFP) issued
by
Emphasis has been laid on development plans
which proposes expansion from iron mine/processing facilities with transport
assets to vertically integrated processes including making steel. However, the
weightage assigned to individual parameters has not been disclosed by the MoM,
The mining concession of Hajigak Deposits
would not only provide an opportunity to tap rich iron ore resources but may
also lead to access to other scarce resources of the in Afghanistan, the size
of which would depend on the raw material quality and linkages mineral-rich
country.
The Indian consortium has proposed to set up a
steel plant, techno-economic viability and approval from the Government of
India as may be required for investment by public sector companies. As per the
RFP, the Afghanistan Government will facilitate access to potential resources
of coking coal and other raw materials for steel making.
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.49.08 |
|
|
1 |
Rs.78.65 |
|
Euro |
1 |
Rs.67.79 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
8 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT LINES |
1~10 |
7 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
64 |
This score serves as a reference to assess SC’s credit risk and
to set the amount of credit to be extended. It is calculated from a composite
of weighted scores obtained from each of the major sections of this report. The
assessed factors and their relative weights (as indicated through %) are as
follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit transaction.
It has above average (strong) capability for payment of interest and
principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively below
average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
- |
NB |
New Business |
- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.