MIRA
INFORM REPORT
|
Report Date : |
22.06.2012 |
IDENTIFICATION DETAILS
|
Name : |
SARDA ENERGY AND MINERALS LIMITED (w.e.f. 12.10.2007) |
|
|
|
|
Formerly Known
As : |
|
|
|
|
|
Registered
Office : |
73/A, |
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|
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Country : |
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|
|
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Financials (as
on) : |
31.03.2011 |
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|
|
|
Date of
Incorporation : |
23.06.1973 |
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|
|
|
Com. Reg. No.: |
11-016617 |
|
|
|
|
Capital Investment
/ Paid-up Capital : |
Rs. 358.500 Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L27100MH1973PLC016617 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
NGPR00172E |
|
|
|
|
PAN No.: [Permanent Account No.] |
AAACR6149L |
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|
Legal Form : |
A Public Limited Liability. The Company’s Shares are listed on the
Stock Exchanges. |
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|
|
Line of Business
: |
Producing Sponge Iron, Mild Steel Ingots, Billets and
Rolled Products |
|
|
|
|
No. of Employees
: |
600 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
A (62) |
|
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 |
|
Status : |
Good |
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|
|
|
Payment Behaviour : |
Regular |
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|
|
|
Litigation : |
Clear |
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|
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 good for normal 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 : |
73/A, Central
Avenue, Shri Ram Niketan, Nagpur – 440
018, Maharashtra, India |
|
Tel. No.: |
91-712-2727509/
2660071/ 5616707 |
|
Fax No.: |
91-712-2728207/
2641171 |
|
E-Mail : |
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|
Website : |
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|
|
|
|
Head Office/ Works : |
|
|
Tel. No.: |
91-771-2216000 |
|
Fax No.: |
91-771-216198 /
2216199 |
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|
|
|
Branches : |
MUMBAI 125-B, Mittal Court, B-Wing, Nariman Point, Mumbai – 400 021,
Maharashtra, India Tel. No.:91-22-22880080-81 Fax No.:91-22-22826680 Email: Mumbai@semi.co.in NAGPUR 73/A, Central Avenue,
Shri Ram Niketan, Nagpur – 440 018, Maharashtra, India Fax:
91-712-27282074
21, Rajratna,
Behind Navrangpura Bus Stand, Navrangpura, Ahmedabad-380009, Gujarat, India Ph: 91-79-26444526
Ground Floor Unit
No. 7, New MMTC Colony, Near Panjabi Para, Barbil-758035 Saket Bhawan,
Opposite UTI Bank, Jagatpur - Dhimrapur Road, Raigarh, Chhattisgarh, India Ph: 91-7762-231132 DELHI OFFICE E-585, Ground
Floor, Greater Kailash, Part, New Delhi-110048, Delhi, India Fax:
91-11-30824411 Email: rcmehta@seml.co.in VISHAKAPATNAM OFFICE G-2, Ramraj
Towers, Rednam Gardens, Visakhapatnam 520007, India Fax:
91-891-2701648 BEIJING REP. OFFICE Room 2301,
Building No.4, Wanda Plaza, No.93 Jianguo Road, Chaoyang District, Beijing,
China-100022 Phone: 91-86
10-58205231 Fax: 91-86
10-58205231 Email: mary.ma@seml.co.in HONG KONG OFFICE
|
DIRECTORS
AS ON 31.03.2011
|
Name : |
Mr. Kamal Kishore Sarda |
|
Designation : |
Chairman and Managing Director |
|
Qualification : |
B.E (Mechanical) |
|
Profile : |
He has three decades of industrial experience and
has a brilliant track record. He has also completed course on Strategic
Management from IIM, Ahmedbad. He has traveled extensively across the world
to study new developments and trends in industry. He was Chairman of
Confederation of Indian Industry (CII), Chhattisgarh Chapter for the year
2005-06. He is also the Chairman of Chattisgarh
Electricity Company Ltd., a closely held public limited company,
which generates Power and manufactures Ferro Manganese and Silico Manganese. |
|
|
|
|
Name : |
Mr. G K Chhanghani |
|
Designation : |
Executive Director |
|
Qualification : |
B.E (Mechanical) |
|
Profile : |
He has nearly three decades of experience in the
steel and power sectors and is associated with the compnay for more than two
decades. He is incharge for day to day operations of the company's production
facilities. |
|
|
|
|
Name : |
Mr. G D Mundra |
|
Designation : |
Whole Time Director |
|
Profile : |
Mr. G. D. Mundra is a senior chartered accountant with two decades of
experience in finance and strategic management. He also has vast experience and
exposure to capital / money market |
|
|
|
|
Name : |
Mr. Rakesh Mehra |
|
Designation : |
Director |
|
Qualification : |
FCWA |
|
Profile : |
Ex-General Manager of MPAVN. He is a financial
consultant and serves as a professional director on the board. |
|
|
|
|
Name : |
Mr. A K Basu |
|
Designation : |
Director |
|
Profile : |
Mr. A. K. Basu is a B.M.E with rich experience in the field of
finance. He is Ex Chief General Manager of IDBI. |
|
|
|
|
Name : |
Mr. P R Tripathi |
|
Designation : |
Director |
|
Qualification : |
Mining Engineer |
|
Profile : |
Ex CMD of National Mineral Development
Corporation. He has rich senior management experience in mining and steel
industry. |
|
|
|
|
Name : |
Mr. Pankaj Sarda |
|
Designation : |
Whole Time Director |
|
|
|
|
Name : |
Mr. G.S. Sahni |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. C.K. Lakshminarayanan |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Jitender Balakrishnan |
|
Designation : |
Director |
KEY EXECUTIVES
|
Name : |
Mr. P. K. Jain |
|
Designation : |
Chief Financial Officer - cum – Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 31.03.2012
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
|
|
|
|
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
8,157,328 |
22.75 |
|
|
14,691,129 |
40.98 |
|
|
1,000,000 |
2.79 |
|
|
1,000,000 |
2.79 |
|
|
23,848,457 |
66.52 |
|
|
|
|
|
Total shareholding of Promoter and Promoter Group (A) |
23,848,457 |
66.52 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
754,834 |
2.11 |
|
|
2,750 |
0.01 |
|
|
250 |
-- |
|
|
2,238,880 |
6.25 |
|
|
1,804,891 |
5.03 |
|
|
1,804,891 |
5.03 |
|
|
4,801,605 |
13.39 |
|
|
|
|
|
|
3,472,762 |
9.69 |
|
|
|
|
|
|
2,872,373 |
8.01 |
|
|
736,198 |
2.05 |
|
|
118,605 |
0.33 |
|
|
15,457 |
0.04 |
|
|
102,148 |
0.28 |
|
|
1,000 |
-- |
|
|
7,199,938 |
20.08 |
|
Total Public shareholding (B) |
12,001,543 |
33.48 |
|
Total (A)+(B) |
35,850,000 |
100.00 |
|
(C) Shares held by Custodians and against which Depository Receipts
have been issued |
|
|
|
Total (A)+(B)+(C) |
35,850,000 |
100.00 |
(1) Indian
Individuals / Hindu Undivided Family
BUSINESS DETAILS
|
Line of Business : |
Producing Sponge Iron, Mild Steel Ingots, Billets and
Rolled Products |
||||||||||
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|
||||||||||
|
Products : |
|
PRODUCTION STATUS AS ON 31.03.2011
|
Particulars |
Unit |
Installed
Capacity |
Actual
Production |
|
Coal |
MT |
NA |
431728 |
|
Pellet |
MT |
600000 |
173668 |
|
Sponge Iron |
MT |
460000 |
219143 |
|
Steel Ingots / Runner Riser |
MT |
40000 |
-- |
|
Steel Billets |
MT |
200000 |
80840 |
|
Wire Road |
MT |
180000 |
40937 |
|
Ferro Alloys |
MT |
66000 |
61232 |
|
Power |
MW / KWH |
81.50 |
468873066 |
|
Fly Ash Bricks, Blocks and Tiles |
MT |
192000 |
36502 |
GENERAL INFORMATION
|
No. of Employees : |
600 (Approximately) |
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Bankers : |
·
Union Bank of India ·
Bank of Baroda ·
UCO Bank ·
Axis Bank Limited |
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Facilities : |
|
|
|
|
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Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
M. M. Jain and Associates Chartered Accountant |
|
Address : |
Shreemohini, Kingsway, Nagpur, Maharashtra, India |
|
|
|
|
Subsidiaries : |
·
Sarda Energy and Minerals Hongkong Limited,
Hongkong ·
Sarda Global Ventures Pte Limited, Singapore ·
Sarda Metals and Alloys Limited ·
Sarda Energy Limited ·
Parvatiya Power Limited ·
Madhya Bharat Power Corporation Limited ·
Sarda Hydro Power Private Limited |
|
|
|
|
Controlled Entities: |
·
Chhattisgarh Hydro Power LLP ·
Shri Ram Electricity LLP |
|
|
·
|
|
Associate : |
·
Chhattisgarh Bricks Private Limited ·
Natural Resources Energy Private limited |
|
|
·
|
|
Related Enterprises where significant influence exist |
·
Prachi Agriculture and Properties Private Limited ·
Sarda Agriculture and Properties Private Limited ·
R.R. Sarda and Company |
|
|
·
|
|
Joint Venture : |
·
Raipur Infrastructure Company Limited ·
Madanpur South Coal Company Limited |
CAPITAL STRUCTURE
AS
ON 31.03.2011
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
50000000 |
Equity Shares |
Rs.10/- each |
Rs.500.000 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
35850000 |
Equity Shares |
Rs.10/- each |
Rs.358.500
Millions |
|
|
|
|
|
Notes:
Out of the above :
1.
6,00,000 Shares allotted as fully paid-up by way of
bonus shares by capitalization of reserves.
2. 2. 1,95,64,229
Shares allotted as fully paid up shares to the shareholders of erstwhile
Chattisgarh Electricity Company Limited and Raipur Gases Private Limited on
amalgamation with the company
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 |
358.500 |
340.451 |
340.451 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
6579.475 |
5305.302 |
4792.806 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
6937.975 |
5645.753 |
5133.257 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
6193.227 |
4472.064 |
5247.023 |
|
|
2] Unsecured Loans |
175.407 |
123.027 |
82.683 |
|
|
TOTAL BORROWING |
6368.634 |
4595.091 |
5329.706 |
|
|
DEFERRED TAX LIABILITIES |
360.740 |
285.921 |
282.450 |
|
|
|
|
|
|
|
|
TOTAL |
13667.349 |
10526.765 |
10745.413 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
6862.394 |
4265.057 |
3516.251 |
|
|
Capital work-in-progress |
1355.016 |
3733.443 |
3553.503 |
|
|
|
|
|
|
|
|
INVESTMENT |
1522.841 |
664.600 |
726.313 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
2587.588
|
1519.844 |
996.262 |
|
|
Sundry Debtors |
433.595
|
143.948 |
182.534 |
|
|
Cash & Bank Balances |
16.865
|
246.657 |
352.587 |
|
|
Other Current Assets |
0.000
|
0.000 |
0.000 |
|
|
Loans & Advances |
1980.509
|
912.226 |
1990.980 |
|
Total
Current Assets |
5018.557
|
2822.675 |
3522.363 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
625.524
|
489.556 |
57.073 |
|
|
Other Current Liabilities |
348.824
|
349.985 |
396.500 |
|
|
Provisions |
124.997
|
119.493 |
119.493 |
|
Total
Current Liabilities |
1099.345
|
959.034 |
573.066 |
|
|
Net Current Assets |
3919.212
|
1863.641 |
2949.297 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
7.886 |
0.024 |
0.049 |
|
|
|
|
|
|
|
|
TOTAL |
13667.349 |
10526.765 |
10745.413 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
8750.265 |
5228.163 |
9487.610 |
|
|
|
Other Income |
198.757 |
72.752 |
36.854 |
|
|
|
TOTAL (A) |
8949.022 |
5300.915 |
9524.464 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Purchase of Trading Goods |
440.098 |
92.457 |
1133.100 |
|
|
|
Raw Materials Consumed |
5928.052 |
3850.765 |
4981.517 |
|
|
|
Stores and Spares Consumed |
453.689 |
115.134 |
196.573 |
|
|
|
Power |
102.905 |
44.389 |
52.885 |
|
|
|
Payments and Other Benefits to Employees |
308.034 |
194.060 |
172.544 |
|
|
|
Manufacturing and Other Expenses |
922.109 |
419.417 |
659.238 |
|
|
|
Trial Run Expenses Capitalized |
(2.238) |
0.000 |
0.000 |
|
|
|
Prior Period Items |
0.100 |
0.183 |
0.925 |
|
|
|
Increase / (Decrease) in Stocks |
(573.885) |
(255.501) |
61.802 |
|
|
|
Net Forex Fluctuation (Gain) / Loss |
(65.278) |
(447.047) |
449.128 |
|
|
|
TOTAL (B) |
7513.586 |
4013.857 |
7707.712 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) © |
1435.436 |
1287.058 |
1816.752 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
151.930 |
127.232 |
45.912 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
1283.506 |
1159.826 |
1770.840 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
576.267 |
387.978 |
278.934 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
707.239 |
771.848 |
1491.906 |
|
|
|
|
|
|
|
|
|
Less |
TAX (I) |
210.510 |
139.859 |
259.507 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-I) (J) |
496.729 |
631.989 |
1232.399 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
3444.701 |
3082.205 |
2119.299 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
150.000 |
150.000 |
150.000 |
|
|
|
Transfer to Debenture Redemption Reserve |
62.500 |
0.000 |
0.000 |
|
|
|
Dividend |
107.550 |
102.135 |
102.135 |
|
|
|
Tax on Dividend |
17.447 |
17.358 |
17.358 |
|
|
BALANCE CARRIED
TO THE B/S |
3603.933 |
3444.701 |
3082.205 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export Earnings |
1174.588 |
636.746 |
1942.366 |
|
|
|
Interest Received |
0.718 |
19.265 |
42.328 |
|
|
|
Other Earnings |
4.230 |
32.901 |
0.000 |
|
|
TOTAL EARNINGS |
1179.536 |
688.912 |
1984.694 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
1854.606 |
705.785 |
1330.480 |
|
|
|
Components and Spare Parts |
7.113 |
1.000 |
4.452 |
|
|
|
Capital Goods |
95.953 |
84.255 |
378.606 |
|
|
TOTAL IMPORTS |
1957.672 |
791.040 |
1713.538 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
14.40 |
18.56 |
36.20 |
|
QUARTERLY RESULTS
(Rs.
In Millions)
|
PARTICULARS |
30.06.2011 |
30.09.2011 |
31.12.2011 |
31.03.2012 |
|
Type |
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
4th
Quarter |
|
Net Sales |
2539.370 |
2513.220 |
2848.060 |
3020.240 |
|
Total Expenditure |
2183.750 |
2485.140 |
2366.930 |
2285.680 |
|
PBIDT (Excl OI) |
355.620 |
28.080 |
481.130 |
734.560 |
|
Other Income |
23.52 |
36.530 |
166.210 |
388.290 |
|
Operating Profit |
379.130 |
64.610 |
647.340 |
1122.850 |
|
Interest |
57.230 |
52.990 |
61.460 |
341.120 |
|
Exceptional Items |
(22.320) |
(3.830) |
(2.060) |
0.000 |
|
PBDT |
299.580 |
7.790 |
583.820 |
781.730 |
|
Depreciation |
144.070 |
147.420 |
172.340 |
168.520 |
|
Profit Before Tax |
155.510 |
(139.620) |
411.480 |
613.220 |
|
Tax |
45.65 |
(40.990) |
133.410 |
(242.060) |
|
Provisions and contingencies |
0.000 |
0.000 |
0.000 |
0.000 |
|
Profit After Tax |
109.860 |
(98.630) |
278.070 |
855.280 |
|
Extraordinary Items |
0.000 |
0.000 |
0.000 |
0.000 |
|
Prior Period Expenses |
0.000 |
0.000 |
0.000 |
0.000 |
|
Other Adjustments |
0.000 |
0.000 |
0.000 |
0.000 |
|
Net Profit |
109.860 |
(98.630) |
278.070 |
855.290 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
PAT / Total Income |
(%) |
5.55
|
11.92 |
12.93 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
8.08
|
14.76 |
15.72 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets) |
(%) |
5.95
|
10.88 |
21.19 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.10
|
0.13 |
0.29 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
1.07
|
0.98 |
1.14 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
4.56
|
2.94 |
6.14 |
LOCAL AGENCY FURTHER INFORMATION
|
Check List by Info Agents |
Available in Report (Yes / No) |
|
1) Year of Establishment |
Yes |
|
2) Locality of the firm |
Yes |
|
3) Constitutions of the firm |
Yes |
|
4) Premises details |
No |
|
5) Type of Business |
Yes |
|
6) Line of Business |
Yes |
|
7) Promoter’s background |
Yes |
|
8) No. of employees |
Yes |
|
9) Name of person contacted |
No |
|
10) Designation of contact person |
No |
|
11) Turnover of firm for last three years |
Yes |
|
12) Profitability for last three years |
Yes |
|
13) Reasons for variation <> 20% |
-- |
|
14) Estimation for coming financial year |
No |
|
15) Capital in the business |
Yes |
|
16) Details of sister concerns |
Yes |
|
17) Major suppliers |
No |
|
18) Major customers |
No |
|
19) Payments terms |
No |
|
20) Export / Import details (if applicable) |
No |
|
21) Market information |
-- |
|
22) Litigations that the firm / promoter |
-- |
|
23) Banking Details |
Yes |
|
24) Banking facility details |
Yes |
|
25) Conduct of the banking account |
-- |
|
26) Buyer visit details |
-- |
|
27) Financials, if provided |
Yes |
|
28) Incorporation details, if applicable |
Yes |
|
29) Last accounts filed at ROC |
Yes |
|
30) Major Shareholders, if available |
No |
OPERATIONS
The capacity
utilization increased in all the plants as compared to previous year.
Additional power generation capacity of 20 MW became operational in December
2010. Wire Rod Mill also became operational during the year. This has helped in
achieving higher generation of power and production of steel. The operation at
the coal
mines of the
Company continues to be normal. Coal washery started operation during the
current year. The operations at iron ore mines remained suspended due to law
and order problems in the surrounding area.
A Core Asset Group
has been formed to promote preventive maintenance practices which will improve
availability of assets across operations. Health Safety and Environment and
Fire Departments have performed consistently in terms achieving better than
statutorily stipulated environmental norms.
PROJECTS
During the year,
the Company spent Rs.766.400 millions on expansion and new projects.
WIRE ROD AND WIRE DRAWING MILL
The 0.180 million
tones Wire Rod Mill at Siltara, Raipur, started commercial operations from
01.01.2011. Wire drawing facility commenced operation during the current year.
This completes the integration of steel operations from mining to the finished
steel for end user. This also gives the flexibility in deciding the product mix
depending upon the market conditions.
COAL WASHERY
The 0.96 million
tonne coal washery was commissioned in the current financial year. Washed coal will
help in achieving higher production in the sponge iron plant of the Company.
The middling and rejects generated in the
washery will be
used for power generation at proposed pithead Thermal Power Plant.
PITHEAD THERMAL POWER PLANT
The Company has
acquired sufficient land for the proposed thermal power project at Kolam,
Raigarh near its captive coal mines. Water has already been allocated for the
project. Public hearing has been successfully completed and now presentation at
state level MoEF is awaited. TCE has been appointed as consultant for Design
and Engineering activities for the project. Bids invited for the BTG package
are being evaluated. The site work and release of orders for the projects will
start after receipt of statutory clearances.
MINERAL RESOURCES
IRON ORE
The Company has
received prospecting license for iron ore over an area of 150 hect. In
Narangsur area of Chhattisgarh. Prospecting work is underway. In addition to
this, Company has received grant order for prospecting licenses from
Chhattisgarh Government for four areas.
MANGANESE ORE
The Company has
acquired Manganese Ore mines in Goa and steps are being taken to operationalise
the mines. The mining lease has been registered in the name of the Company.
Applications for seeking various clearances have been made and the
environmental clearance and forest clearance is under process. The Company has
also received 3 Prospecting Licenses in Balaghat, District of Madhya Pradesh.
The prospecting work is underway.
COAL MINES
The Company has
got interest in a coal mine in a Joint Venture (JV) and also interest in coal
mines in Indonesia
through a wholly
owned subsidiary. These mines will ensure long-term sustainable and
uninterrupted availability of fuel to the Company. The coal mine allotted in JV
falls in the area classified as a NO GO AREA by the Ministry of Environment and
Forest. A Group of Ministers is formed to resolve the issue. The work on the
coal mine under Wholly Owned Subsidiary is progressing steadily. Forest clearance
has been received. Land acquisition is going on.
IRON ORE SIZING AND SCREENING PLANT
As informed in the
last report, the second phase of the Iron Ore Sizing and Screening plant of
6.00 LTPA have been commissioned successfully on 31.08.2010. As Iron Ore mines
operation remained suspended due to poor law and order in the mining area, the
plant could not be operated at its fullest capacity. 63010 MT Iron ore fines
were processed out of 76862 MT iron ore fines shifted from the mines. During
the year, 29206 MT was dispatched to plant after screening and washing. The
product quality remained within the acceptable norms. However, to further
improve the quality of the product, certain modifications are being carried out
in the existing system. The modifications will be completed by the end of
current financial year.
JOINT VENTURES
RAIPUR
INFRASTRUCTURE COMPANY LIMITED
Operates a private
railway siding in Mandhar near the manufacturing facility of the Company and
other joint venture partners for movement of the goods, which are transported
through the railways. During the year 2010 – 11, the Company has handled a
total of 78 rakes of
different material. The total quantity handled was 273027 MTs.
Consequent upon
commissioning of the private railway siding of SEML, the no. of rakes handled
by the Company
has reduced. In
order to increase the operations, the Company has invited other private parties
to utilize the facility.
The Company has
also applied for another private railway siding in Orissa. The in-principal
approval from Railways has been received and DPR has been submitted to Railways
for approval. The approval of DPR from Railway is under process. For
acquisition of private land the administrative approval from Government of
Orissa for the purpose of 4 (1) Notification under L.A Act has been received on
14.03.2011. The acquisition of land required for railway siding is in progress.
The Company holds one-third share in the joint
venture.
MADANPUR SOUTH COAL COMPANY LIMITED
Madanpur South Coal Company Limited has been allotted a coal block in Madanpur
area of Dist. Korba of Chhattisgarh in consortium. Most of the clearances
required have been obtained but in the meanwhile, the MoEF has declared the
total Hasdev Arand Area, in which this mine falls, as NO GO AREA and has not
considered any proposal of forest clearance. The matter is before GoM/Prime
Minister’s office for resolution. The work would be put on fast track once the
forest clearance is received from MoEF. Bank Guarantee submitted to MoC for Rs.436.200
millions in continuity of the previous one has been renewed from IDBI Bank and
submitted to the MoC.
The Company holds
20.63% share for its share of 36 million tones of coal in the Joint Venture.
AWARDS/APPRECIATION
During the year, Engineering
Export Promotion Council (Western Region) has conferred the “EEPC Star
Performers Award in the Product Group (Ferro Alloys)” on the Company for its
outstanding export performance
during F.Y. 2008-09.
The Company has
also been awarded first prize, in the Best Open Plantation competition
organized by Urla Industrial Association, in the category of Large Industries.
MANAGEMENT
DISCUSSION AND ANALYSIS
INDUSTRY STRUCTURE AND DEVELOPMENT
The Company
operates primarily in steel and ferro alloys as an integrated producer and has
now focused on energy sector as potential growth area. Developments in the
industry, during the year, are discussed hereunder.
STEEL
On the back of
recovery in the developed countries global crude steel production registered an
impressive growth of 15% with 38% in USA and 34% in Germany. After recording a
negative growth in 2009, global crude steel production reached to new high of
1414 Mn tones in the year 2010 against 1229 Mn tones of 2009. China leads with
627 Mn tones registering growth of 9.3%. With production of 67 Mn tones, India
ranked 5th recording growth of 6.4%, the lowest growth among top ten
steel producing countries. The reasons for poor growth of the steel sector in
India are raw material insecurity, dependence on imported coal, poor
infrastructure affecting logistics, cumbersome and uncertain process of land
acquisition and delay in environmental clearances. The exports and imports of
long product segment in which the Company operates fell by 33.7% and 23.6% respectively.
Iron ore and coal
prices registered sharp increase which could not be passed on fully to the
consumer putting pressure on margins. Iron ore prices went up mainly on account
of supply side constraints after strict enforcement
of mining laws and its politicization.
Coal India
limited, the monopoly supplier of coal, also increased prices of steel grade
coal by whopping 170%. This has made the coal linkage quite inconsequential.
Over and above that excise duty of 5% has been imposed on coal in this budget.
Faced with shortage of iron ore lumps, a number of iron ore pelletisation
plants have come up in the country which will be using huge stock pile of iron
ore fines created over the years. The leading Indian steel producers have
announced mega expansion plans.
SPONGE IRON
Blast furnace
route of steel making requires coking coal, which is available in a very
limited quantity in the country. As against this sponge iron / direct reduction
route uses non coking coal which is abundantly available in the country.
Because of this, India continues to be the largest producer of coal based DRI
in the world since 2003 contributing about one third of world production.
During 2010-11 India produced 23.26 Mn tones of DRI, 17.07 Mn tones using coal
and 6.19 Mn tones using natural gas. India registered growth of just 1.14 % in
DRI production. Capacity utilization of sponge iron plants was low because of
high ash content in indigenous coal which adversely affects operating condition
of kilns.
Coal from captive
coal mine backed by coal washery ensures uninterrupted supply of sponge iron
grade coal to the Company. This also insulates against ever increasing prices
of fuel. The middling generated from washing of coal shall be sold initially
and will be utilized for generation of power at pit head. The Company has also
put up 600,000 MT capacity pelletisation plants which will ensure uninterrupted
supply of raw material for sponge iron plant with homogeneous size and
consistent quality. These factors will help in efficient operation of sponge
iron plant.
FERRO ALLOYS
Ferro alloys are
used as additives in production of steel to impart resistance to corrosion,
hardness, tensile, strength and resistance against abrasion in the steel.
Therefore, ferro alloys industry’s fortunes are dependent on growth in steel
industry. Mn ore reserves are concentrated mainly in China, South Africa,
Australia, Brazil, Gabon and India. China and India are net importers of Mn
Ore. Mines in South Africa and Australia are controlled by global mining majors
who dictate the prices of Mn ore. Indian Ferro alloys industry is fragmented
with many small and medium sized smelters. Now larger players are coming up
with new capacities which will change the dynamics of this industry in the
coming years.
GLOBAL MANGANESE ORE AND ALLOY PRODUCTION
China is the
largest importer of Manganese Ore with import of 11 Mn tones of ore. High
Carbon Ferro Mn with 4.4 Mn tones registered growth of 33%, Refined Ferro Mn
with 1.5 Mn tones registered growth of 50% and High Carbon Silico Mn with 8.7
Mn tones registered growth of 18%. The average consumption of Manganese Alloy
in Steel was about 10 Kg per tones.
The Mn production
capacity in India is about 2.5 Mn tones which is adequate to support crude
steel production of 120 Mn tones. Mn ore reluctant and power constitute about
90% of the cost making non integrated producers vulnerable to market vagaries.
The Company has captive power plant and has secured mining concessions from the
government which are in various stages of clearances / development.
POWER
India, with a
capacity of 1,75,000 MW (12,160 MW being added in 2010-11) has the fifth
largest electricity generation capacity in the world. Even though India has
initiated various initiatives to increase power generation
capacity, the
demand continues to be much higher than supply. Majority of generation,
transmission and distribution capabilities rests with public utilities.
India meets major
part of its domestic energy demand through thermal generation. Coal as a major
source of Mn Alloy Production (Million mt) fuel for power generation dominates
the utility industry but delay in development of new coal mines on account of
environmental clearances and land related disputes has put extra pressure and
increased dependence on costly imports.
Increased
dependence on imported coal, price increases being affected by the public
sector coal companies and
cost of pollution
and emission control will have a significant bearing on the overall cost of generation
going forward. More and more developers including the Indian coal companies are
looking at overseas acquisition of coal mines to address some of these concerns
on fuel.
The government
introduced renewable energy purchase obligation (RPO) on all consumers of
fossil fuel energy.
In the state of
Chhattisgarh with effect from 4th March, 2011 such consumers have to generate
or buy 5% of their consumption from renewable sources a part of which has to be
compulsorily from solar. Any shortfall has to be met by buying Renewable Energy
Certificates (REC) from power exchange. RECs are issued to renewable energy
generators to compensate them for viability gap. This has increased cost of
generation by about 15 paise per unit.
Outlook
Growth in steel
and power demand has strong correlation with growth in GDP of nation. As the
Indian economy is slated to exhibit robust growth in GDP, steel and power
demand is also expected to grow in tandem. With possibility of large integrated
green field steel and ferro alloys plants coming up in the near future non
integrated
producers without
raw material / fuel base are likely to face cost pressures.
The Company has
got iron ore and coal mines to meet its full requirement of raw material for
next 25 years. Mn
ore mines have
also been allotted to the Company, which are at different stages of clearances
/ development. The Company has also taken up large green field projects in
ferro alloys and hydro power through subsidiaries. These are under execution.
The ferro alloys at vizag will start production by the end of current year
which will give a quantum jump to the consolidated performance of the Company.
M/s. Asia Minerals Limited. Hongkong, who acquired 5% stake in the Company will
help in production of high end ferro alloys products and deeper penetration of
Japanese market. Small hydro power projects of the Company will also be
eligible for renewable energy certificates adding substantially to the
profitability / meeting Company’s Renewable purchase obligation.
STATEMENT OF FINANCIAL RESULTS FOR THEQUARTER (UNAUDITED) AND THE YEAR
(AUDITED) ENDED 31-03-2012
Rs. In Millions
|
|
|
Quarter
ended |
Year Ended |
|||
|
Sl. No. |
Particulars |
31.03.2012 (Unaudited) |
31-12-2011 (Unaudited) |
31-03-2012 (Audited) |
||
|
1. |
|
|
|
|
||
|
|
a. |
Net Sales/Income from Operations |
2977.753 |
2850.556 |
10893.455 |
|
|
|
b. |
Other Operating Income |
42.487 |
19.070 |
108.314 |
|
|
|
Total |
3020.240 |
2869.626 |
11001.769 |
||
|
2. |
Expenditure |
|
|
|
||
|
|
a. |
Cost of materials consumed |
1620.373 |
1819.059 |
6287.740 |
|
|
|
b. |
Purchase of stock-in-trade |
54.795 |
42.173 |
140.477 |
|
|
|
c. |
Changes in inventories of finished goods, work-in-progress and stock-in-trade |
(35.833) |
(232.896) |
(4.124) |
|
|
|
d. |
Employee benefits expense |
114.678 |
100.442 |
408.701 |
|
|
|
e. |
Depreciation (net of transfer from revaluation reserve) and amortisation |
168.517 |
172.335 |
632.336 |
|
|
|
f. |
Other Expenditure |
531.666 |
495.669 |
2377.670 |
|
|
|
Total |
2454,196 |
2396.782 |
9842.800 |
||
|
|
|
|
|
|
||
|
3. |
Profit / (Loss) from Operations
before Other Income,
Interest and Exceptional Items (1 - 2) |
566.043 |
472.844 |
1158.968 |
||
|
|
|
|
|
|
||
|
4. |
Other Income |
388.293 |
86.665 |
584.391 |
||
|
|
|
|
|
|
||
|
5. |
Profit / (Loss) before
Interest and
Exceptional Items (3
+ 4) |
954.337 |
559.509 |
1743.360 |
||
|
|
|
|
|
|
||
|
6. |
Interest |
341.117 |
148.030 |
702.767 |
||
|
|
|
|
|
|
||
|
7. |
Profit / (Loss) after Interest
but before Exceptional
Items (5 - 6) |
613.220 |
411.479 |
1040.593 |
||
|
|
|
|
|
|
||
|
8. |
Exceptional items |
-- |
-- |
-- |
||
|
|
|
|
|
|
||
|
9. |
Profit / (Loss) from Ordinary
Activities before tax
(7 + 8) |
613.220 |
411.479 |
1040.593 |
||
|
10. |
Tax Expense |
(242.057) |
133.409 |
(103.396) |
||
|
11. |
Net Profit / (Loss)from Ordinary Activities after tax (9 - 10) |
855.276 |
278.070 |
1143.988 |
||
|
|
|
|
|
|
||
|
12. |
Extraordinary Items (net of tax expense Rs. Nil) |
-- |
-- |
-- |
||
|
|
|
|
|
|
||
|
13. |
Net Profit / (Loss) for
the period (11 - 12) |
855.276 |
278.070 |
1143.988 |
||
|
14. |
Paid-up Ordinary Share Capital (Face Value Rs.10.00 per share) |
-- |
-- |
358.500 |
||
|
15. |
Reserves excluding Revaluation Reserve as per Balance Sheet of
previous accounting year |
-- |
-- |
7723.465 |
||
|
16. |
Earnings Per Share
(EPS) |
|
|
|
||
|
|
a. |
Basic and Diluted EPS before Extraordinary Items (Rs.) |
23.86 |
7.76 |
31.91 |
|
|
|
b. |
Basic and Diluted EPS after Extraordinary Items (Rs.) |
23.86 |
7.76 |
31.91 |
|
|
17 |
Debt service Coverage Ratio |
-- |
-- |
1.99 |
||
|
18 |
Interest Service Coverage Ratio |
-- |
-- |
4.43 |
||
|
|
|
|
|
|
||
|
19 |
Public Shareholding |
|
|
|
||
|
|
– |
Number of shares |
12001543 |
12001543 |
12001543 |
|
|
|
– |
Percentage of shareholding |
33.48% |
33.48% |
33.48% |
|
|
20 |
Promoters and Promoter Group Shareholding |
|
|
|
||
|
|
a. |
Pledged /Encumbered |
|
|
|
|
|
|
|
- |
Number of shares |
0.000 |
0.000 |
0.000 |
|
|
|
- |
Percentage of shares (as a % of the total shareholding of |
0.000 |
0.000 |
0.000 |
|
|
|
- |
Percentage of Shares (as a % of the total share capital of the
company) |
0.000 |
0.000 |
0.000 |
|
|
b. |
|
Non encumbered |
|
|
|
|
|
|
- |
Number of shares |
23848457 |
23848457 |
23848457 |
|
|
|
- |
Percentage of shares (as a % of the total shareholding of |
100.00% |
100.00% |
100.00% |
|
|
|
- |
Percentage of Shares (as a % of the total share capital of the
company) |
66.52% |
66.52% |
66.52% |
NOTES:-
1. The above accounts were reviewed by the Audit Committee and considered and approved in the meeting of the Board of Directors held on 26.05.2012.
2. Exchange differences on long term foreign currency loans, over and above adjustment to interest cost in terms of paragraph 4(e) of AS16 amounting to Rs.186.417 Millions have been added to the cost of assets as per Clause 46A of the AS11 (inserted vide notification date. 29.12.2011). This is depreciated over the balance life of the assets and accordingly depreciation of Rs.11.385 Millions has been charged to profit and loss account.
The exchange difference, on the same foreign currency loans, regarded as an adjustment to interest cost in terms of paragraph 4(e) of AS16 amounting to Rs.158.686 Millions have been included under finance costs in the statement of Profit and Loss. The effect of the same was not given in the quarter ended 31st December 2011.
3. The other income for the quarter includes dividend from subsidiary Rs.266.550 Millions
4. The figures for the corresponding previous periods have been restated / regrouped, wherever necessary, to make them comparable. The figures of last quarter are the balancing figures between audited figures in respect of the full financial year and the published year to date figures up to the third quarter of the current financial year.
5. The Board of Directors have recommended, subject to approval of shareholders, a dividend of Rs. 3/- per fully paid up equity shares of Rs.10/- each, aggregating to Rs.124.997 Millions, including dividend distribution tax.
6. The share transfer books shall remain close from 2nd July'2012 to 7th July'2012 (both days inclusive). The same may be taken as notice u/s. 154 of the Companies Act' 1956.
7. The above results are also available on the Company's website - www.seml.co.in
8. Ratios have been computed as under :-
i. DSCR = EBIDTA/(Interest +Scheduled Principal Payments)
ii. ISCR = EBIDTA/Interest Expenses (Excluding Notional Interest) Interest excludes exchange differences to the extent regarded as adjustment to interest cost.
SEGMENT
WISE REVENUE, RESULTS AND CAPITAL EMPLOYED FOR THE QUARTER / YEAR ENDED 31ST
MARCH, 2002
(Rs. in millions)
|
|
Quarter
ended |
Year Ended |
|
|
Particulars |
31.03.2012 (Unaudited) |
31-12-2011 (Unaudited) |
31-03-2012 (Audited) |
|
Segment Revenue |
|
|
|
|
a) Steel |
2004.428 |
1803.354 |
701.192 |
|
b) Ferro Alloys |
930.617 |
920.353 |
3581.968 |
|
c) Unallocated |
100.713 |
154.899 |
470.690 |
|
Total |
3035.768 |
2878.606 |
11053.850 |
|
Less
: Inter Segment Revenue |
15.529 |
8.980 |
52.081 |
|
Net Sales/Income from operations |
3020.239 |
2869.626 |
11001.769 |
|
|
|
|
|
|
Segment Results (Profit before Interest and Tax) |
|
|
|
|
a) Steel |
527.285 |
286.740 |
1275.109 |
|
b) Ferro Alloys |
87.580 |
53.080 |
320.375 |
|
Total |
614.865 |
339.820 |
1595.484 |
|
Less
: i) Interest and Forex fluctuation Gain/(Loss) |
(214.889) |
(10.578) |
(780.244) |
|
ii)
Other unallocable expenditure net off unallocable income. Gain/(Loss) |
213.245 |
82.236 |
225.353 |
|
Total
Profit Before Tax |
613.220 |
411.479 |
1040.593 |
|
|
|
|
|
|
Capital
Employed (Segment Assets - Segment Liabilities) (Based on estimates in terms of
available data) |
|
|
|
|
a) Steel |
7646.670 |
8255.879 |
7646.670 |
|
b) Ferro Alloys |
997.565 |
1087.658 |
997.565 |
|
c) Unallocated |
2852.639 |
2691.514 |
2852.639 |
|
Total
|
11496.874 |
12035.051 |
11496.874 |
Notes :-
1. Previous year/quarter figures are regrouped and reclassified to confirm to current year/quarter classification.
STATEMENT OF ASSETS AND LIABILITIES
Rs. In Millions
|
|
|
Particular |
Standalone |
|
|
|
|
31.03.2012 |
|
A |
|
EQUITY AND LIABILITIES |
|
|
1 |
|
Shareholders' Fund |
|
|
|
a) |
Share Capital |
358.500 |
|
|
b) |
Reserves & Surplus |
7723.465 |
|
|
c) |
Money received against share warrants |
- |
|
|
|
Subtotal - Shareholders' Fund |
8081.965 |
|
2 |
|
Share Application
money pending allotment |
- |
|
3 |
|
Minority Interest |
|
|
4 |
|
Non-Current
Liabilities |
|
|
|
a) |
Long-Term Borrowings |
4506.722 |
|
|
b) |
Deferred Tax Liability (net) |
499.614 |
|
|
c) |
Other Long term liabilities |
17.151 |
|
|
d) |
Long-term provisions |
83.476 |
|
|
|
Subtotal - Non-current Liabilities |
51060.963 |
|
5 |
|
Current Liabilities |
|
|
|
a) |
Short-term borrowings |
2038.519 |
|
|
b) |
Trade Payables |
834.863 |
|
|
c) |
Other Current Liabilities |
907.545 |
|
|
d) |
Short -term provisions |
48.998 |
|
|
|
Subtotal - Current Liabilities |
3829.925 |
|
|
|
|
|
|
|
|
TOTAL - EQUITY AND LIABILITIES |
17018.853 |
|
B |
|
ASSETS |
|
|
1 |
|
Non-current Assets |
|
|
|
a) |
Fixed Assets |
84,27.058 |
|
|
b) |
Non-current investments |
21,26.145 |
|
|
c) |
Deffered tax assets |
- |
|
|
d) |
Long-term loans and advances |
1884.081 |
|
|
e) |
Other non-current assets |
12.102 |
|
|
|
Subtotal - Non-current Assets |
12449.386 |
|
2 |
|
Current Assets |
|
|
|
a) |
Current investments |
5.139 |
|
|
b) |
Inventories |
2272.222 |
|
|
c) |
Trade Receivables |
431.304 |
|
|
d) |
Cash and Bank Balances |
9.475 |
|
|
e) |
Short-term loans and advances |
1591.469 |
|
|
f) |
Other current assets |
259.859 |
|
|
|
Subtotal - Current Assets |
4569.468 |
|
|
|
|
|
|
|
|
TOTAL - ASSETS |
17018.853 |
FIXED ASSETS
·
Land
·
Coal Mines
·
Building
·
Plant and Machinery
·
Furniture and Fixtures
·
Equipment
·
Vehicles
WEB SITE DETAILS
PROFILE
Subject is an India-based company. The Company operates in two business
segments: steel and ferro. The products manufactured by the Company include sponge
iron, steel, ferro alloys, power and coal mines. During the fiscal year ended
March 31, 2010 (fiscal 2010), the Company produced 202,788 metric tons of
sponge iron. In fiscal 2010, the Company produced 4,780 metric tons of ingots
and 7,322 metric tons of billets. During fiscal 2010, the Company produced
35,819 metric tons of ferro alloys. In fiscal 2010, the Company generated
330.59 million kilowatt hour (Kwh) power. During fiscal 2010, the Company
produced 291,127 metric tons of coal from the mines. During fiscal 2010, the
Company produced 17,61,244 bricks/blocks/tiles. Its subsidiaries include
subject, Hong Kong (SEMHKL), Sarda Global Ventures Pte. Limited; Singapore,
Sarda Metals and Alloys Limited and Madhya Bharat Power Corporation Limited.
For the fiscal year ended 31 March 2010, Sarda Energy and Minerals Limited's
revenues decreased 37% to RS6.06B. Net income increased 9% to RS1.44B. Revenues
reflect a decreased in income from Steel and Ferro business segments. Net
income was offset by a decrease in raw materials consumed, lower purchase of
trading goods, decreased stores and spares consumed, a decrease in power
expense and lower manufacturing and other expenses.
Subject is one of the lowest cost producers of steel (sponge iron, billets, ingots, TMT bars) and one of the largest manufacturers and exporters of ferro alloys in India. Headquartered in Raipur, Chhattisgarh, the company merged with Chhattisgarh Electricity Company Limited (CECL) in 2007 with a vision to becoming a leading energy and minerals company.
Over the last three decades the company has continuously diversified its
product portfolio to include many customized value added products. The company
firmly believes in benchmark product quality, customer centric approach, people
focus, ethical business practices and good corporate citizenship. Building on
these values, SEML has become the supplier of choice for many domestic and
international customers across more than 60 countries.
Subject differentiates itself from its peers by not being just another steel company. It foresaw the importance and emergence of energy and minerals as two critical ingredients for developing economies and particularly for India. Synergy in Energy became the basis of all its future endeavors. Today, Subject is one of the very few companies to become completely self-sufficient in terms of its energy requirements and is well on its way to achieve self sufficiency in other mineral resources. The company has acquired iron ore, coal and manganese mines in India and is aggressively looking for mineral resources across the globe.
Time Line
1979 The Sarda Group took over Raipur Alloys and Steel Limited (RASL) (earlier Raipur Wires and Steel Limited), a sick and closed entity.
1981 Commissioned a 10 MT electric arc furnace to produce ingots.
1984 Installed a continuous casting machine/ billet casting machine, the fourth company in India to do so at that time.
1987 Implemented the first automated oxygen lancing plant in Madhya Pradesh to feed oxygen in the arc furnace.
1990 Implemented the first automated ultra-high power furnace (25 MTPD) and ladle refining furnace (25 MTPD) in Madhya Pradesh.
1993 Commissioned first sponge iron plant (100 MTPD) with modern SIL technology.
1995 Commissioned second sponge iron plant (100 MTPD).
2001 Commissioned a 24-MW captive power plant in Chhattisgarh Electricity Company Limited (CECL).CECL installed 2x9-MVA closed-top ferro alloys furnaces. RASL commenced production in 2x6 MT induction furnaces.
2002 Implemented an integrated Oracle-based ERP solution.
2003 Commenced a fly ash brick plant of 6000 units per day to utilize hazardous fly ash from captive power plant. CECL installed third 9 MVA ferro alloys furnace.
2004 Commenced extraction from RASL iron ore mines in Rajnandgaon (Dongarbore, Chhattisgarh).RASL augmented its sponge iron capacity through another 500 MTPD kiln. Doubled the fly ash brick-making capacity to 240 lakh units per annum.
2005 CECL installed fourth 9 MVA ferro alloys furnace.CECL installed second 24 MW power plant.RASL achieved QMS certification of ISO 9001:2000.
2006 Augmented steel-making capacity by 100,000 MTPA ( 2X15 tonnes).Installed the fifth 9 MVA ferro alloys furnace. Achieved the coveted Star Export House status from the Government of India.
2007 Subject came into existence on 2 August 2007 following the merger of CECL with RASL.
2008 Increased steel-making capacity by another 100,000 TPA (2x15 tonnes).Commissioned a 4.8 MW hydro power project through an SPV. Implemented SAP ERP system.
MANAGEMENT
KAMAL KISHORE
SARDA - EXECUTIVE CHAIRMAN OF THE BOARD, MANAGING DIRECTOR
Mr. Kamal Kishore Sarda is Executive Chairman of the Board, Managing
Director of Sarda Energy and Minerals Limited since December 12, 1978. He holds
B.E. (Mech.) degree.
JITENDER
BALAKRISHNAN - ADDITIONAL INDEPENDENT DIRECTOR
Mr. Jitender Balakrishnan is Additional Independent Director of Sarda
Energy and Minerals Limited Since July, 2010. Mr. Balakrishnan has done B.E.
(Mech.) from National Institute of Technology, Madras University and has also
done Post Graduate Diploma in Industrial Management from Bombay University. He
had a long career with IDBI Bank Group serving in various positions before
retiring as Advisor in May 2010. He has wide experience in the sectors like,
Oil and Gas, Refineries, Power, Telecom, Airports, Roads, Ports, Steel, Cement,
Fertilizers, Petrochemicals, Hotel, Pharmaceuticals, Paper, etc.
Education
·
BE Mechanical Engineering, National Institute of
Technology, Bombay University
A. K. BASU -
INDEPENDENT NON-EXECUTIVE DIRECTOR
Mr. A. K. Basu is Independent Non-Executive Director of Sarda Energy and
Minerals Limited. He has been a Director of the company since January, 2003.
His qualification is BME. He is Ex-Chief General Manager IDBI. He has more than
40 years experience in the field of finance and industry. He has been a
Director of Online Capital Markets Limited; EM Financial Advisory Services
(India) Private Limited; ICRA Online Limited. He has been Chairman of the Audit
Committee and member of the Remuneration Committee of Sarda Energy and Minerals
Limited.
GOPAL KRISHNA
CHHANGHANI – WHOLE TIME DIRECTOR
Mr. Gopal Krishna Chhanghani is Whole Time Director of Sarda Energy and Minerals
Limited. He has been Director of the company since November, 1997. His
qualification is B. E. (Mech.). He has more than 35 years experience in the
iron and steel industry. He has been Director of Raipur Infrastructure Company
Limited; Madanpur South Coal Company Limited; Krishna Synergy Private Limited.
C. K.
LAKSHMINARAYANAN - INDEPENDENT NON-EXECUTIVE DIRECTOR
Mr. C. K. Lakshminarayanan is Independent Non-Executive Director of
Sarda Energy and Minerals Limited, since January, 2009. His qualification is B.
Tech. He has over 38 years experience in the finance/ banking and power sector.
He has been a Director of Juniper Hotels Private Limited. He is a Member of the
Audit Committee of Sarda Energy and Minerals Limited.
RAKESH MEHRA -
INDEPENDENT NON-EXECUTIVE DIRECTOR
Mr. Rakesh Mehra is Independent Non-Executive Director of Sarda Energy
and Minerals Limited. He has been a Director of the company since July, 1986.
He is a Cost Accountant. He is Ex-General Manager of MPAKVN and has 30 years of
experience in the field of finance. He has been Director of Econotech Services
Private Limited; Minwool Rock Fibres Limited; Shiv Solvent Extractions Products
Private Limited. He has been Member of Audit Committee and Remuneration
Committee of Sarda Energy and Minerals Limited.
GHANSHYAM DAS
MUNDRA – WHOLE TIME DIRECTOR
Mr. Ghanshyam Das Mundra is Whole Time Director of Sarda Energy and
Minerals Limited. He has more than 27 years experience in the field of finance
and accounting.
GAJINDER SINGH
SAHNI - INDEPENDENT NON-EXECUTIVE DIRECTOR
Mr. Gajinder Singh Sahni is Independent Non-Executive Director of Sarda
Energy and Minerals Limited. He is done Post Graduate Diploma in Public
Administration, Cardiff University, U. K. He is a retired IAS officer of Madhya
Pradesh Cadre belonging to 1971 batch. He has played a role as a Member of the
Indian Administrative Service, in a wide spectrum of areas at the highest
levels of decision making in the government. He is experienced in toning up
administrative mechanism for operational efficiency, creation of effective
delivery systems of public service and realization of synergies to society. He
hasexposure to multi-sectoral areas of policy formulation, planning and
administration.
Education
·
Cardiff University
PANKAJ SARDA –
WHOLE TIME DIRECTOR
Mr. Pankaj Sarda is Wholetime Director of Sarda Energy and Minerals
Limited. He holds Industrial Engineering from the Nagpur University and MBA
from the Purdue University, USA.
Education
·
MBA, Purdue University
·
Industrial Engineering, Nagpur University
P. R. TRIPATHI -
INDEPENDENT NON-EXECUTIVE DIRECTOR
Shri. P. R. Tripathi is Independent Non-Executive Director of Sarda
Energy and Minerals Limited. Mr. Tripathi is Non-Executive Independent Director
for Raipur Alloys and Steel Limited. He holds B.Sc Hons, Mining Engineering. He
is Ex-CMD, NMDC. He has more than 47 years of experience in the mining and
related activities.
P. K. JAIN - CHIEF
FINANCIAL OFFICER, COMPLIANCE OFFICER, SECRETARY
Mr. P. K. Jain is Chief Financial Officer, Compliance Officer, Secretary
of Sarda Energy and Minerals Limited.
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.56.42 |
|
|
1 |
Rs.88.45 |
|
Euro |
1 |
Rs.71.52 |
INFORMATION DETAILS
|
Report Prepared
by : |
NTH |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
8 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT LINES |
1~10 |
6 |
|
--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 |
|
62 |
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.