MIRA
INFORM REPORT
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Report Date : |
06.03.2012 |
IDENTIFICATION DETAILS
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Name : |
HINDALCO INDUSTRIES LIMITED |
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Registered
Office : |
Century Bhavan, 3rd Floor, |
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Country : |
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Financials (as
on) : |
31.03.2011 |
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Date of
Incorporation : |
15.12.1958 |
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Com. Reg. No.: |
11-011238 |
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Capital
Investment / Paid-up Capital : |
Rs.1914.600
Millions |
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CIN No.: [Company Identification
No.] |
L27020MH1958PLC011238 |
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TAN No.: [Tax Deduction &
Collection Account No.] |
MUMI05060G |
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PAN No.: [Permanent Account No.] |
AAACH1201R |
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Legal Form : |
Public Limited
Liability Company. The Company’s Shares are Listed on the Stock Exchanges |
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Line of Business
: |
Manufacturer of
Aluminium Products. |
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No. of Employees
: |
12000
(Approximately) |
RATING & COMMENTS
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MIRA’s Rating : |
Aa (75) |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
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Maximum Credit Limit : |
USD 1100000000 |
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Status : |
Excellent |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a part of Aditya Birla Group. It is a well established and
a reputed company having fine track.
Financial position of the company appears to be sound. Fundamentals are
strong and healthy. Trade relations are reported as fair. Business is active.
Payments are reported to be regular and as per commitments. The company can be considered good for any 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) |
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A1 |
A1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
INFORMATION DECLINED BY
|
Name : |
Mr. S. Talukdar |
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Designation : |
Chief Executive Officers |
LOCATIONS
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Registered Office/ Marketing Head Office: |
Century Bhavan, 3rd
Floor, |
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Tel. No.: |
91-22-24308491 /
92 / 93 / 66626666 |
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Mobile No. : |
91-9964225222
(Mr. Manotosh Chakraborty) |
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Fax No.: |
91-22-24227586 /
24362516 |
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E-Mail : |
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Website : |
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Corporate
Office 1/ - Marketing Head
Office (Copper) : |
Aditya Birla Centre, III Floor, B Wing, S. K. Ahire Marg,
Worli, Mumbai – 400030, |
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Tel No.: |
91-22-66525000 / 24995000 |
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Fax No.: |
91-22-66525847 / 24995841 |
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Email : |
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Website: |
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Corporate
Office 2: |
Foil and Packaging Business, Kalwa Works, Thane Belapur
Road, Near Vitawa Village, Kalwa, Thane-400 605, Maharashtra, India |
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Tel. No.: |
91-22-25347151 |
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Fax No. : |
91-22-24227586 |
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Email : |
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Principal
Office and Works / Renusagar Power Division |
District
Sonbhadra, P. O. Renukoot – 231217, Mirzapur, |
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Tel. No.: |
91-5446-252077-9/
272501-5 |
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Fax No.: |
91-5446-252107 /
252427/ 272382 |
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E-Mail : |
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Birla Copper
Division: |
P. O. Dahej,
Lakhigam, Dist. Bharuch - 392130, |
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Tel. No.: |
91-2641-256004-06/251009 |
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Fax No.: |
91-2641-251002-3 |
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E-Mail : |
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Foil and Wheels Division: |
Village Khutli,
Khanvel, Silvassa – 396 230, |
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Tel. No.: |
91-260-2677021-4 |
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Fax No.: |
91-260-2677025 |
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Export Office: |
9/1, |
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Tel. No.: |
91-33-22480949 /
22200464 |
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Fax No.: |
91-33-22200214 |
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Email: |
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Factory : |
ALUMINIUM
AND POWER Renukoot
Plant P.O. Renukoot -231217, Dist Sonbhadra Uttar Pradesh, Tel : 91-5446-252077-9 Fax: 91-5446-252107 Renusagar
Power Division P. O. Renusagar, Dist. Sonbhadra Tel : 91-5446-272502-5 Fax: 91-5446272382 Alupuram
Smelter Alupuram P.B. No. 30, Kalamassery 683 104, Dist:
Ernakulam, Tel: 91-484-2532441 Fax: 91-484-2532468 Hirakud
Smelter Hirakud 768 016, Dist: Sambalpur, Tel: 91-663-2481307 Fax: 91-663-2481356 Hirakud
Power Post Box No.12, Hirakud 768 016, Dist: Sambalpur, Tel: 91-663-2481408 Fax: 91-663-2481342 Talabira
Mines Talabira-1, Qrs. No. A6/1, Saraswati Vihar, P.O. Sankarma,
Dist. Sambalpur, Tel: 91-663-2540426 Fax: 91-663-2540526 COPPER: Birla
Copper Division P.O. Dahej, Lakhigam Post, Dist. Bharuch – 392 130, Tel: 91-2641- 256004-06/ 251009 Fax: 91-2641- 251002-3 CHEMICALS: Muri
Alumina Post Chotamuri-835 101, District Ranchi,
India Phone: 91-6522- 244396 Fax: 91-6522-244231 Village Yamanapur , Tel: 91-831-2472716 Fax: 91-831-2472728 Chandgad
Mines At Post: Chandgad 416509, Dist: Tel/Fax: (02320) 213342 Durgmanwadi
Mines At Post Radhanagri, Dist: Tel: 91-2321-260036 Fax: 91-2321-260037 Lohardaga
Mines Dist: Lohardaga 835 302, Jharkhand Tel: 91-6526-224446 Fax: 91-6526-224446 SHEET,
FOIL, WHEEL, PACKAGING AND EXTRUSIONS Foils and Wheels Division, Village Khutli, Khanvel,
Silvassa-396230, U.T., India Tel: 91-260-2677021/4 Fax: 91-260-2677025 Belur
Sheet 39, Tel: 91-33-26547210 Fax: 91-33-26549982 Taloja
Sheet Plot 2, MIDC Industrial Area, Taloja A.V., Dist : Raigad,
Navi Mumbai - 410 208, Tel: 91-22-27412261/ 66292929 Fax: 91-22-27412430 Kalwa
Foil Thane Tel: 91-22- 25347151/52 Fax: 91-22- 25348798 Alupuram
Extrusions Alupuram, P.B. No.30, Kalamassery - 683 104, Dist:
Ernakulam, Tel: 91-484-2532441 Fax: 91-484- 2532468 Mouda
Unit Village Dahali, Tel: 91-7115-660777/786 Kollur
Works Village- Kollur, Re Puram Mandal, Via Mutangi, Medak Dist,
Andhra Pradesh – 502 300, Tel: 91-8413- 234300/ 234204/05 Fax: 91-8455-288829 |
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Regional
Office : |
Located
At: ·
New Delhi ·
Kolkata ·
Bangalore ·
Mumbai |
DIRECTORS
As on 31.03.2011
|
Name : |
Mr. Kumar Mangalam
Birla |
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Designation : |
Chairman |
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Address : |
16-A, IL-Palazzo, Little |
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Date of Birth/Age : |
42 Years |
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Date of Appointment : |
16.11.1992 |
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Name : |
Mrs. Rajashree Birla |
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Designation : |
Non-Executive Director |
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Address : |
16-A, IL- Palazzo, Little |
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Date of Birth/Age : |
64 Years |
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Date of Appointment : |
15.03.1996 |
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Name : |
Mr. A.K. Agarwala |
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Designation : |
Non-Executive Director |
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Address : |
“Haveli”, Flat No.3, L.D. Ruparel Marg, Mumbai – 400
006, |
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Date of Birth/Age : |
76 Years |
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Date of Appointment : |
11.09.1998 |
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Name : |
Mr. Chaitan Manbhai Maniar |
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Designation : |
Non-Executive Director |
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Address : |
Garden House, 1st Floor, Dadyseth, 2nd |
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Date of Birth/Age : |
73 Years |
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Date of Appointment : |
08.03.1983 |
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Name : |
Mr. Sangram Singh Kothari |
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Designation : |
Non Executive Directors |
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Name : |
Mr. Madhukar Manilal Bhagat |
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Designation : |
Non Executive Directors |
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Name : |
Mr. Kailash Nath Bhandari |
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Designation : |
Non Executive Directors |
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Name : |
Mr. Narendra Jamnadas Jhaveri |
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Designation : |
Non Executive Directors |
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Name : |
Mr. Ram Charan |
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Designation : |
Non Executive Directors |
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Name : |
Mr. Jagdish Khattar |
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Designation : |
Non Executive Directors |
KEY EXECUTIVES
|
Name : |
Mr. Sunirmal
Talukdar |
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Designation : |
Group Executive President and Chief Finance
Officer |
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Name : |
Mr. Anil Malik |
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Designation : |
Company Secretary |
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Name : |
Mr. Rengaiyengar Ram |
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Designation : |
Executive President (Corporate Projects and
Procurement) |
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Name : |
Mr. Vineet Kaul |
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Designation : |
Chief People Officer |
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Name : |
Mr. Surya Kanta Mishra |
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Designation : |
Chief Executive Officer |
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Name : |
Mr. Dilip Gaur |
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Designation : |
Group Executive President, Copper |
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Name : |
Mr. Shashi
Maudgal |
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Designation : |
Chief Marketing Officer |
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Name : |
Mr. Satish Mohan
Bhatia, |
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Designation : |
President (Foil and Packaging) |
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Name : |
Mr. Raghavendra
Dhulkhed, |
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Designation : |
Senior President (Operations) |
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Name : |
Mr. Sanjay
Sehgal, |
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Designation : |
President (Chemicals and International
Trade) |
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Name : |
Mr. Dinesh Kumar
Kohly, |
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Designation : |
Chief Operating Officer (Renukoot and
Renusagar Units) |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 30.09.2011
|
Category of
Shareholder |
Total No. of
Shares |
Total Shareholding
as a % of total No. of Shares |
|
(A) Shareholding of Promoter and Promoter Group |
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2,398,696 |
0.14 |
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595,082,362 |
34.14 |
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16,316,130 |
0.94 |
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16,316,130 |
0.94 |
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613,797,188 |
35.21 |
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Total shareholding of Promoter and Promoter Group (A) |
613,797,188 |
35.21 |
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(B) Public Shareholding |
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47,254,491 |
2.71 |
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13,476,927 |
0.77 |
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|
287,480 |
0.02 |
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208,808,024 |
11.98 |
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540,691,408 |
31.02 |
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810,518,330 |
46.50 |
|
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120,244,848 |
6.90 |
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|
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141,190,683 |
8.10 |
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9,230,168 |
0.53 |
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48,224,580 |
2.77 |
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10,556,507 |
0.61 |
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3,836,361 |
0.22 |
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32,555,710 |
1.87 |
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1,276,002 |
0.07 |
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|
318,890,279 |
18.29 |
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Total Public shareholding (B) |
1,129,408,609 |
64.79 |
|
Total (A)+(B) |
1,743,205,797 |
100.00 |
|
(C) Shares held by Custodians and against which Depository Receipts have
been issued |
- |
- |
|
|
14,542,309 |
- |
|
|
156,738,040 |
- |
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|
171,280,349 |
- |
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Total (A)+(B)+(C) |
1,914,486,146 |
- |
BUSINESS DETAILS
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Line of Business : |
Manufacturer of
Aluminium Products. |
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Products : |
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PRODUCTION STATUS [AS ON 31.03.2011]
|
Class of goods |
Installed Capacity [Qty] |
Actual Production [Qty] |
|
Aluminium Metal |
506400* |
537935 |
|
Rolled Products |
205000 |
199821# |
|
Extruded Products |
31000 |
35865@ |
|
Conductor Redraw Rods |
56400 |
94307$ |
|
Aluminium Foil |
40000 |
17698 |
|
Aluminium Wheel |
-- |
-- |
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|
PCS |
PCS |
|
Hydrate and Alumina |
1500000 |
1352877 |
|
Electricity |
1109.200 MW |
9213 MU |
|
Electricity (Co-generation) |
248.8 MW |
1463 MU |
|
Continuous Cast Copper Rods (CCR) |
142200 |
144553 |
|
Copper cathodes |
500000 |
335598 |
|
Sulphuric Acid |
1670000 |
1097158 |
|
Phosphoric Acid |
180000 |
102167 |
|
DAP and complexes |
400000 |
219805 |
|
Gold |
15 |
6960 |
|
Silver |
150 |
45076 |
NOTE:
1.
* Installed capacity of Hirakud Smelter increased.
2.
# Includes 56 T (Previous Year 7 T) converted from
outside party, 4134 T (Previous year 3618 T) being production out of customers’
material and 23126 (Previous year 21461 T) transferred for captive consumption.
3.
@ Include Nil T (Previous year 1 T) converted from
outside party and 319 T (Previous year 67 T) transferred for captive
consumption.
4.
$ Include 13 T (Previous year Nil T) transferred
for captive consumption.
5.
Alumina includes 1059478 T (1053571 T) transferred
for own consumption/ further processing.
6.
Production of CCR, Copper cathodes, Sulphuric acid,
and Phosphoric acid include 533 T, 142,926 T, 318,495 T and 102,167 T (Previous
year 1182 T, 148,424 T, 251,654 T and 85,187 T) respectively which have been
captively consumed / to be consumed. Copper cathodes also include 10,707 T
(Previous Year Nil T) being production out of customers’ material.
7. During the year
production and standardization loss of DAP & complexes is 360 T (Previous
Year is 302 T).
GENERAL INFORMATION
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No. of Employees : |
12000
(Approximately) |
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Bankers : |
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Facilities : |
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Banking
Relations : |
-- |
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Auditors : |
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Name : |
Singhi and Company Chartered Accountants |
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Cost Auditors: |
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Name : |
R. Nanabhoy and Company Chartered Accountants |
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Address : |
Mumbai |
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Name : |
Mani and Company Chartered Accountantss |
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Address : |
Kolkata |
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Subsidiaries : |
·
Minerals and Minerals Limited ·
Renukeshwar Investments and Finance Limited ·
Renuka Investments and Finance Limited ·
Lucknow Finance Company Limited ·
Dahej Harbour and Infrastructure Limited ·
Birla Resources Pty Limited ·
Aditya Birla Minerals Limited ·
Birla Maroochydore Pty Limited ·
Birla Nifty Pty Limited ·
Birla Mt. Gordon Pty Limited ·
Aditya Birla Chemicals (India) Limited ·
Utkal Alumina international Limited ·
Suvas Holdings Limited ·
Indal Exports Limited (dissolved on 4th March,
2011) ·
Hindalco-Almex Aerospace Limited ·
HAAL (USA) Inc. ·
A V Minerals (Netherlands) B.V. ·
A V Metals Inc. ·
A V Aluminum Inc. (merged with Novelis w.e.f.
29th September, 2010) ·
East Coast Bauxite Mining Company Private Limited ·
Tubed Coal Mines Limited ·
Mauda Energy Limited ·
Novelis (India) Infotech Limited ·
Novelis Inc. ·
Novelis No. 1 Limited Partnership ·
4260848 Canada Inc. ·
4260856 Canada Inc. ·
Novelis Cast House Technology Limited ·
Novelis Corporation ·
Aluminum Upstream Holdings LLC ·
Eurofoil Inc. (USA) ·
Evermore Recycling LLC ·
Logan Aluminium Inc. ·
Novelis Brand LLC ·
Novelis PAE Corporation ·
Novelis South America Holdings LLC ·
Novelis Belgique S.A. ·
Novelis Benelux NV ·
Albrasilis - Aluminio do Brasil Industria e
Comércio Ltda. ·
Novelis do Brasil Ltda. ·
Novelis Foil France S.A.S. ·
Novelis Laminés France S.A.S. ·
Novelis PAE S.A.S. ·
Novelis Aluminium Beteiligungs GmbH ·
Novelis Deutschland GmbH ·
Novelis Aluminium Holding Company ·
Novelis Italia SpA ·
Novelis Luxembourg S.A. ·
Al Dotcom Sdn Berhad ·
Alcom Nikkei Specialty Coatings Sdn Berhad ·
Aluminum Company of Malaysia Berhad ·
Novelis de Mexico, S.A. de C.V. ·
Novelis Madeira, Unipessoal, Lda ·
Novelis Korea Limited ·
Novelis AG ·
Novelis Switzerland S.A. ·
Novelis Technology AG ·
Novelis UK Limited ·
Novelis Europe Holdings Limited ·
Novelis Services Limited ·
Novelis North America Holdings Inc. |
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Associates: |
·
Aditya Birla Science and Technology Company
Limited ·
Idea Cellular Limited ·
Consórcio Candonga ·
France Aluminium Recyclage S.A. ·
Aluminium Norf GmbH ·
Deutsche Aluminium Verpackung Recycling GmbH ·
MiniMRF LLC (Delaware) |
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Trust of Company: |
Trident Trust |
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Joint Ventures: |
·
Hydromine Global Minerals GMBH Limited ·
Mahan Coal Limited |
CAPITAL STRUCTURE
As on 31.03.2011
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
2100000000 |
Equity Shares |
Re.1/- each |
Rs.2100.000
Millions |
|
25000000 |
Redeemable
Cumulative Preference Shares |
Re.2/-each |
Rs.50.000
Millions |
|
|
Total |
|
Rs.2150.000 Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
1914944163 |
Equity Shares |
Re.1/- each |
Rs.1914.900
Millions |
|
|
Less: Face value of equity forfeited shares |
|
Rs.0.500
Million |
|
|
Add: Forfeited shares |
|
Rs.0.200
Million |
|
|
Total |
|
Rs.1914.600 Millions |
NOTE:
1. Subscribed and
Paid-up Equity Share Capital includes:
a. 491,766,770 (Previous
year 491,766,770) Equity Shares of Re.1/- each fully paid-up allotted as Bonus
Shares by Capitalization of General Reserve and Capital Redemption Reserve.
b. 6,000,000
(Previous year 6,000,000) Equity Shares of Re.1/- each fully paid-up allotted
pursuant to a contract for consideration other than cash.
c. 187,678,350
(Previous year 187,678,350) Equity Shares of Re.1/- each fully paid-up allotted
to the share holders of erstwhile Indo Gulf Corporation Limited pursuant to the
Scheme of Arrangement without payment being received in cash.
d. 2,995,220
(Previous year 2,995,220) Equity Shares of Re.1/- each fully paid-up allotted
to the share holders of erstwhile Indian Aluminium Company, Limited pursuant to
the Scheme of Arrangement without payment being received in cash.
e. 376 (Previous
year 376) Equity Shares of Re.1/- each fully paid-up allotted to the share
holders of erstwhile Indian Aluminium Company, Limited pursuant to the Scheme
of Amalgamation without payment being received in cash.
2. Issued Equity
Share Capital includes 7,397 (Previous year 718,769) Equity Shares of Re.1/-
each kept in abeyance due to legal case pending.
3. During the year
the Company has issued and allotted 224,100 Equity Shares of Re.1/- each fully
paid-up against exercise of stock options. The Company has also allotted
711,372 Equity Shares of Re.1/- each fully paid-up against issued shares kept
in abeyance due to legal case pending.
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 |
1914.600 |
1913.700 |
1704.600 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
295041.700 |
277156.100 |
235878.600 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
5] Employee Stock Exchange |
44.700 |
39.900 |
0.000 |
|
|
NETWORTH |
297001.000 |
279109.700 |
237583.200 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
51703.100 |
51539.000 |
57132.300 |
|
|
2] Unsecured Loans |
21011.900 |
12030.000 |
26110.600 |
|
|
TOTAL BORROWING |
72715.000 |
63569.000 |
83242.900 |
|
|
DEFERRED TAX LIABILITIES |
12874.900 |
13664.400 |
14106.700 |
|
|
|
|
|
|
|
|
TOTAL |
382590.900 |
356343.100 |
334932.800 |
|
|
|
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|
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APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
75843.800 |
77348.200 |
78869.700 |
|
|
Capital work-in-progress |
94640.500 |
37027.900 |
13896.300 |
|
|
|
|
|
|
|
|
INVESTMENT |
182467.500 |
214808.300 |
191488.400 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
76521.900
|
59214.100 |
40701.400 |
|
|
Sundry Debtors |
12689.900
|
13118.700 |
12012.200 |
|
|
Cash & Bank Balances |
2333.900
|
1402.100 |
8437.200 |
|
|
Other Current Assets |
1204.900
|
534.300 |
517.800 |
|
|
Loans & Advances |
15276.300
|
14373.700 |
15730.500 |
|
Total
Current Assets |
108026.900
|
88642.900 |
77399.100 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
47093.600
|
29662.300 |
16139.800 |
|
|
Other Current Liabilities |
24847.400
|
24607.000 |
2549.300 |
|
|
Provisions |
6446.800
|
7214.900 |
8031.600 |
|
Total
Current Liabilities |
78387.800
|
61484.200 |
26720.700 |
|
|
Net Current Assets |
29639.100
|
27158.700 |
50678.400 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
382590.900 |
356343.100 |
334932.800 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
238592.100 |
195220.900 |
182196.500 |
|
|
|
Other Income |
3167.500 |
2598.500 |
6366.500 |
|
|
|
TOTAL (A) |
241759.600 |
197819.400 |
188563.000 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Goods /
Trade Purchased |
5222.200 |
719.900 |
1130.400 |
|
|
|
Manufacturing and Other Expenses |
205462.300 |
172554.300 |
145501.600 |
|
|
|
Impairment |
0.000 |
(41.500) |
9.300 |
|
|
|
Increase / Decrease in Stocks |
(3946.700) |
(7552.500) |
5205.800 |
|
|
|
TOTAL (B) |
206737.800 |
165680.200 |
151847.100 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
35021.800 |
32139.200 |
36715.900 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
2199.600 |
2780.000 |
3369.300 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
32822.200 |
29359.200 |
33346.600 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
6874.800 |
6713.600 |
6443.400 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
25947.400 |
22645.600 |
26903.200 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
4578.200 |
3489.300 |
4600.500 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
21369.200 |
19156.300 |
22302.700 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
3000.000 |
3000.000 |
3000.000 |
|
|
|
|
|
|
|
|
|
Add |
TRANSFER
FROM DEBENTURE REDEMPTION RESERVE |
0.000 |
875.000 |
0.000 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
17531.600 |
17019.100 |
19562.300 |
|
|
|
Proposed Dividend on Equity Shares |
2871.700 |
2583.200 |
390.200 |
|
|
|
Tax on Proposed Dividend |
465.900 |
429.000 |
2295.800 |
|
|
|
Other Reserves |
0.000 |
0.000 |
54.400 |
|
|
BALANCE CARRIED
TO THE B/S |
3500.000 |
3000.000 |
3000.000 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export
of Goods on FOB |
70960.000 |
52675.800 |
51481.800 |
|
|
|
Others |
11.400 |
110.600 |
62.200 |
|
|
TOTAL EARNINGS |
70971.400 |
52786.400 |
51544.000 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw
Materials |
143931.800 |
115214.200 |
79365.600 |
|
|
|
Coal |
1787.600 |
1369.700 |
2280.400 |
|
|
|
Components
and Spare Parts |
490.200 |
2423.600 |
640.500 |
|
|
|
Capital
Goods |
9006.200 |
890.100 |
788.300 |
|
|
|
Trading
Goods |
3966.400 |
719.900 |
1126.300 |
|
|
|
Furnace
Oil |
0.000 |
0.000 |
305.000 |
|
|
TOTAL IMPORTS |
159182.200 |
120617.500 |
84506.100 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
11.17 |
10.82 |
14.82 |
|
QUARTERLY RESULTS
|
PARTICULARS |
|
30.06.2011 |
30.09.2011 |
|
Type |
|
1st
Quarter |
2nd
Quarter |
|
Net Sales |
|
60308.700 |
62718.700 |
|
Total Expenditure |
|
51638.200 |
56026.300 |
|
PBIDT (Excl OI) |
|
8670.500 |
6692.400 |
|
Other Income |
|
1779.100 |
1760.800 |
|
Operating Profit |
|
10449.600 |
8453.200 |
|
Interest |
|
667.200 |
675.100 |
|
PBDT |
|
9782.400 |
7778.100 |
|
Depreciation |
|
1753.500 |
1741.100 |
|
Profit Before Tax |
|
8028.900 |
6037.000 |
|
Tax |
|
1588.900 |
1011.800 |
|
Profit After Tax |
|
6440.000 |
5025.200 |
|
Net Profit |
|
6440.000 |
5025.200 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
PAT / Total Income |
(%) |
8.84
|
9.68 |
11.83
|
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
10.87
|
11.59
|
14.77
|
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
14.11
|
13.64
|
53.09
|
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.09
|
0.08
|
0.11
|
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
0.51
|
0.44
|
0.46
|
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.37
|
1.44
|
2.90
|
LOCAL AGENCY FURTHER INFORMATION
HISTORY
The company the metals flagship company of the Aditya Birla Group, is an
industry leader in aluminium and copper. A metals powerhouse with a
consolidated turnover in excess of US$ 14 billion, Hindalco is the world's
largest aluminium rolling company and one of the biggest producers of primary
aluminium in
Established in 1958, the company commissioned its aluminium facility at Renukoot
in Eastern U.P. in 1962. Later acquisitions and mergers, with Indal, Birla
Copper and the Nifty and Mt.Gordon copper mines in
In 2007, the acquisition of Novelis Inc. a world leader in aluminium rolling
and can recycling, marked a significant milestone in the history of the
aluminium industry in
Business Overview:
FY 11 witnessed a
strong pricing environment for commodities driven by continued global economic
recovery. Strong fundamental demand, buoyed by strong growth in industrial activity
after a lull in FY 09; and fledgling recovery in FY10, coupled with growing
emergence of commodities as an asset class manifested in strong prices for both
copper and aluminium, the businesses in which the company operates. However,
the flip side to this commodity boom was a sharp rally in crude and energy
prices giving rise to incessant cost pressures, which negated most benefits of
higher commodity prices. The year also brought in unique challenges for subject
as it suffered two major disruptions at
• Hirakud smelter
(Aluminium) and
• Dahej plant due to cooling tower problem (copper)
Thus FY11 clearly
tested the company’s resilience and determination to deliver against a back
drop of significant macroeconomic, strategic and operational challenges. The
company’s business fired on all fronts, leveraged every opportunity in the book
and demonstrated an unprecedented ‘can do’ spirit to deliver an outstanding
performance against these odds. Every constituent of the business: Aluminum and
Copper business in India, Novelis and ABML, contributed equitably to this
delivery and in a way laid a strong strategic foundation for sustaining this
improved performance into the future.
Business
Highlights
The highlights of
this year’s performance were
• Consolidated
Revenue of USD 15.9 billion on the back of strong showing by all businesses
• highest ever
underlying EBITDA of $1.9 billion, reflecting the inherent strength of the
company’s low cost business model, operational excellence, superior product mix
and a balanced portfolio.
• Strong cash
flows to support the growth Ambitions
• Innovative
financing to fuel their growth plans. The Company completed over USD 7 billion
of financing transactions; each of them has been a landmark in itself:
• Financial closure
of Utkal and Mahan: Achieved financial closure of two projects in a challenging
liquidity environment. underpinned by an overwhelming response in syndications,
a fitting testimony to their deal structuring capabilities and underlying
credibility with the banking fraternity.
• Novelis
refinancing: This was a landmark innovation in financing - not only did subject
get back 50% of the invested equity within 4 years, but also opened up a novel
funding avenue between Novelis and Hindalco
Subject consolidated
revenue at Rs. 720780.000 Millions has been the highest ever, a growth of 19%
yearon- year. Strong volumes, improved mix and higher commodity prices have
been the growth drivers. Profit before depreciation, interest and taxes stood
at Rs. 84330.000 Millions as against Rs. 100690.000 Millions in FY10, which
included Rs. 27360.000 Millions (USD 578 million) of unrealized gains on
derivatives, as against unrealised loss of Rs. 2910.000 Millions (USD 64
million) in FY11. The underlying performance of the current year sets a new
record, reflecting the inherent strength of the Company’s low cost business
model, operational excellence, superior product mix and a balanced and
de-risked portfolio.
Revenues for the year crossed USD 5 Bn
For the year ended
March 31, 2011, net sales at Rs. 238590.000 Millions grew by 22%. Highest ever
copper volumes, better product and geographic mix, by-product credit and higher
realisation led by higher commodity prices enabled the company clock an
impressive growth. Input cost pressures, lower TcRc and one-timers associated
with the Hirakud power outage have been some of the constraints faced in
attaining even higher levels of performance. EBITDA for FY11 stood at Rs.
35020.000 Millions as against Rs. 3,210 Millions in FY10; inclusive of a gain
of over Rs. 3490.000 Millions, arising on account of AS-30 transition. FY11
EBITDA was constrained by the one-timers mentioned above.
Operational Highlights:
The endeavour to produce
more metal through asset sweating and through de-bottlenecking at Renukoot
helped the company produce 538 KT, marginally lower than previous year’s
production of 555 KT of hot metal despite loss of over 20 KT productions at
Hirakud.
Aluminium sales at
Rs. 79650.000 Millions were up 14%, mainly on the back of better realization.
Overall metal volumes were lower due to Hirakud disruption, however following
proactive initiatives were taken to bridge the gap:
1. Higher Alumina
sales by 28%, as surplus Alumina was diverted to third party sales.
2. Sold more metal
in India, to benefit from higher realization.
The EBIT margin of
the Aluminium business is amongst the highest relative to domestic and global
peers which underlines our strategic thrust and commitment to combine cost
leadership and portfolio de-risking.
FY11 posed several
challenges to the Copper smelters worldwide. Strong copper prices resulting
into higher working capital blockage, tightness in the concentrate market; and
lower TCRC’s along with severe cost inflation squeezed the custom smelters
margins significantly. The Copper smelting business delivered a strong
performance against these significant odds. The business contributed Rs.
159020.000 Millions to the top line – a growth of 27% YOY, and delivered EBIT
of Rs. 6020.000 Millions as compared with Rs. 6600.000 Millions last year.
However it is significant to note that last year’s performance included a
transitional gain of Rs.1560.000 Millions arising out of Derivative accounting.
This has been a strong underlying performance delivered by the business despite
the loss in production due to unexpected cooling tower problem coupled with
adverse Tc/Rc and rising cost pressures.
Novelis
Novelis, The
Company’s 100% subsidiary, today is poised for Rapid Transformational Growth.
The adjusted EBITDA at a record level of USD 1.1 billion was up by 42% compared
to previous year. The company also posted a net income of USD 116 million under
US GAAP and a solid Free Cash Flow of USD 310 million during the year.
The record results
at Novelis reflect a number of ongoing initiatives to strengthen the business
and prepare it for transformational growth. The global realignment of the
organization towards operating as a fully integrated global company, optimizing
the Company’s footprint and reducing its cost base by closing underperforming
and non-core
plants and by
investing in recycling initiatives fuelled its growth. The focus continues to
be on premium products, which now comprise over 70 percent of Novelis’ product
portfolio. The refinancing and recapitalizing initiatives undertaken in FY11
have positioned the Company to significantly invest over the next few years to
capture strong market growth in its key product segments globally. Shipments of
aluminium rolled products totaled 2,969 Kt for FY11, an increase of 10 percent
compared to shipments of 2,708 Kt in the previous year. This increase in
shipments for the year was driven by strong end-market conditions across all
product segments globally, particularly in can, automotive and electronics. Net
sales for FY11 were $10.6 billion, an increase of 22 percent compared to the
$8.7 billion reported for FY10. Novelis intends to use its strong operating
cash flow to fund $1.5 billion in capital expenditure over the next three
years. The previously announced rolling mill expansion in Brazil and the
recently announced expansion in Korea as well as strategic automotive expansion
in North America are key focus areas in the near term to capitalize on future
growth and solidify its position as the leading player in the global FRP
industry.
Over the next
year, Novelis expects continued strong demand in its key product segments. As a
result, capital expenditure for FY12 is projected to be between $550 and $600
million. Much of this capital is earmarked for strategic investments, which
include Brazilian and Asian rolling mill expansions, strategic automotive
capacity increase in North America and recycling initiatives across operating
regions. Debottlenecking projects are also being undertaken across the regions
to increase the capacity.
Aditya Birla Minerals
Aditya Birla
Minerals (ABML) delivered a strong performance in FY11 granting the fact that
Mt Gordon facility remained under care and maintenance. Improvements in
operational efficiencies across the board have resulted in the highest ever
copper production from Nifty. Through various initiatives, including those that
were initiated during the Global Financial Crisis of 2009/10, the company
managed to offset the impact of the inflationary pressures on its cost
structure. With a robust operational frame, Aditya Birla Minerals is on a
strong footing to benefit from the global healthy economics.
The Company’s financial
performance for FY11 has been rewarding and encouraging. The consolidated
revenue stood at A $464 million – up 22% from the previous year. The growth was
driven by higher shipments as well as better realizations. Net profit after tax
was A$57 million in FY11, recording a marginal decline from A$61 million in the
previous year. The decline was primarily on account of the expenditure incurred
towards environmental compliance for Mt Gordon that was under care and
maintenance throughout the year. A rising Australian dollar against USD also
impacted the profitability. Nevertheless, the restart of Mt Gordon operations
and on the strength of strong copper prices for the year, the company is set to
improve its operational and financial performance in the on-going financial
year.
Projects
Subject projects
continue to follow the strategic plan which we have set for their selves. The
Company has embarked on an aspirational growth path towards which, three new
Aluminium Smelters and two new Alumina Refineries are being set up in the
states of Odisha, Madhya Pradesh and Jharkhand. With these projects on stream,
aluminium smelting capacity will touch around 1.7 Million-tonne and alumina
refining capacity around 6 Million-tonne. The site work on these Greenfield projects
is in various stages of progress.
Financing:
The company took
several proactive financing measures to ensure smooth progress on these
projects.
Utkal and Mahan Financing
The three
projects, viz. Utkal Alumina International Limited [UAIL], Mahan Aluminium and
Aditya Aluminium, with a capital outlay of USD 5 billion are at various stages
of execution. The equity for these projects has been financed by internal
accruals and QIP issuance of USD 600 million in Nov ’09. During the year the
company achieved the financial closure of UAIL and Mahan Aluminium through debt
financing for Rs. 49060.000 Millions and Rs. 78750.000 Millions respectively.
Business
Performance Review:
Aluminium Business
Industry Review
Global economy
continued to recover after the unprecedented sharp fall in FY09 and an equally
spectacular recovery in the later part of FY10. Strong demand from both
emerging markets and developed markets on the back of increased Industrial
activity fuelled the demand for commodities. However, emerging markets
continued to be the torchbearer of this growth while the strong demand from
developed market was primarily driven by restocking post crisis.
Globally, though
the growth momentum continued, towards later part of FY 11, there were signs of
growth moderation as most economies started facing strong headwinds post this
rapid growth. Rising inflation, cost pressures and the steps taken by various
governments, to tame the inflation could stem the growth. With economic
sustainability of some of the European countries under question with rising
sovereign debt concerns, the growth sustainability is under cloud. Similarly
geo-political issues in Middle East too have slowed down the growth momentum.
The Indian economy
is estimated to have grown at around 9% in real term. This strong growth was on
the back of strong industrial grow h and was indeed a reflection of strong
consumer demand across all the sectors.
Going forward
though the growth momentum is expected to continue over long term following
rising urbanization, industrialization and rising income levels leading to
higher spend, there may be some roadblocks in the interim.
Strong
inflationary pressures, rising deficit with strong crude prices, high interest regime
are already impacting the growth momentum, with signs of moderation not only in
the investments in the various projects especially infrastructure projects, but
also in the consumer demand.
Aluminium Demand and Market:
In CY 2010, the
world aluminium consumption stood at around 41 Million tonnes, a sharp increase
of over 20 % over 34 Million tones consumption in CY 2009. The CY10 production
stood marginally higher at ~42 Million tones against production of 38 Million
tonnes in CY 09. The sharp rise in demand was the result of strong recovery in
the emerging market demand and primarily restocking led growth in developed
markets. As in the past, China continued to be the driving force behind this
demand growth, growing at ~ 21% and contributing to over 41% of global
aluminium demand in CY10.
Globally,
Aluminium production too, increased as the producers restarted their capacities
with the smart recovery in the aluminium LME. As a result the global markets
continued to be in surplus. During the crisis as the aluminium prices fell
sharply, many players with bullish view on aluminium, started building
aluminium inventory. Low storage cost added by negligible financing cost and
positive outlook on prices resulted into inventory getting locked as contango exceeded
carrying cost. This trend still continues resulting in shortage of aluminium in
the physical market and rising premiums. Today, the global inventory stands at
historical peaks and has created an
overhang leading
to a paradox of relatively depressed prices and yet higher premium. Indian
domestic demand continued to be robust on the back of strong industrial growth.
Strong growth in the end user segments such as automobiles, Industrial and
infrastructure; and thrust on power sector growth, propelled the aluminium
demand which grew at 14% despite of some moderation towards later part of the
year.
In FY11, LME
average aluminium prices remained strong at around 2,250 $/tonne an increase of
over 21% over previous year’s average prices. The appreciating rupee though
negated some of the LME price gains as for every tonne of aluminium sold we
realised fewer rupee. The aluminium prices continued to rise even as inventory
levels remained at their historic highs. This was the result of tightness in
the physical market, with most inventories as explained above tied up at
various ware houses under financing deals. Across the globe, the cost of
production of
aluminium
increased sharply as input costs such as alumina and power surged. Alumina
costs increased as the aluminium prices recovered and bauxite quality
deteriorated. Strong increase in aluminium production with dwindling supply of
quality bauxite, coupled with rising crude related costs resulted in higher
cost of alumina. The
higher alumina
cost has led to increased clamor for decoupling of alumina prices from
aluminium prices. Alumina prices, which used to be around 11-5-12.5% of
aluminium prices historically are today trading north of 16% and with a
possible move to spot based pricing, are expected to increase further.
For most producers
power costs increased with sharp rise in coal/energy prices. The cost of other
inputs such as CPC coke and anodes also increased in line with the rise in the
crude prices. In the Indian context increase in coal prices further accentuated
the cost pressure.
Operational Review
On this backdrop,
the Company’s aluminium business operational performance was indeed exceptional
and recorded a strong production performance despite loss of production due to
Hirakud outage.
Alumina
Alumina production
increased by 3% to 1.35 Million tonnes primarily through production ramp up at
Muri. They also increased the higher paying domestic sale of specials by 16%.
Overall alumina sales increased by 28% on account of lower captive consumption due
to lower aluminium production at Hirakud. Alumina sales revenue increased by
over 31% due to higher volumes and improved product mix.
Primary Metal
Primary aluminium
production decreased only by 3% to 537,935 MT. despite a significant loss of
production at Hirakud. Hirakud smelter facility production was adversely
impacted because of outage due to incessant rains and thunderstorm. Primary
aluminium sales volumes were in line with the production, however the revenues
showed a strong
increase of over 14% due to higher LME.
Wire Rods
Wire rods
production grew by over 3% from 91,903 MT in FY 10 to 94,307 MT. The production
was increased to cater to growing demand from power sector.
Value Added
Products (VAP)
This remains the key
focus area of the company to enhance profitability. The VAP (i.e. flat rolled
products, extrusions and foils) volumes in tonnage were impacted due to decline
in metal volume. The overall revenue though remained strong on account of
higher aluminium LME. The markup in the downstream business has shown a
continuous improvement over the years with continuous improvement in product
mix as well as geographical mix.
Extrusions
Extrusions
production was affected as production activities at Alupuram, Kerala continued
to be hampered following lock-out declared on February 22, 2011. The extrusion
volumes were at 35,865 tonnes as compared with 38,909 tonnes in FY 10.
Financial
Performance
The turnover of
the aluminium domestic business increased by 14 per cent to Rs.79650.000
Millions vis-ŕ-vis Rs. 69890.000 Millions in the previous year, despite lower
metal volumes and decline in VAP as average LME for the year was 21% higher
than the previous year.
Earnings before
interest and taxes (EBIT) increased by 13% to Rs. 20040.000 Millions due to
higher realizations, improved geographic mix and strong thrust on operational
efficiency improvement. This improvement was in the face of strong cost
inflation. The costs push, was the result of sharp increase in crude prices
leading to significant increase in crude derivative prices such as CP coke and
fuel oil. Coal prices also increased sharply. The company also suffered on
account of production loss at Hirakud, which is relatively low cost facility
and subsequent spends on stabilizing the pot lines.
Aluminium
producers across the globe experienced the impact of cost inflation as the
global cost curve moved sharply upward. The company’s performance was amongst
the best in the industry. This was possible due to its low cost structure,
superior product and geographic mix as discussed earlier.
Aluminium Outlook
In 2011, the
global aluminium demand is expected to remain strong and is expected to
increase by around 9% reaching to almost 45 Million tonnes. The Chinese demand
is expected to rise by a healthy 11% even after considering demand moderation
in the recent months. With a strong recovery in the US and EU the demand
momentum is expected to remain strong.
Aluminium demand
in India has been very strong in the recent past growing at almost 14% CAGR.
Unlike the western world the primary demand driver for aluminium in India has
been power sector which accounts for almost 48% demand. With government’s
stated committed spending towards achieving 70,000 MW generation target, the
spend on power infrastructure will be huge. As far as the other aluminium
consuming sectors are concerned with growing urbanisation the demand growth has
picked up from packaging, automobile, construction (increased usage)
electronics (cell phone, laptop bodies) etc.. The per capita consumption at
~1.2 kg is still abysmally low as compared with even China ~10 Kg and the
western world ~ 15-18 Kg. This offers significant potential demand upside.
The Global demand
outlook for FRP (Flat rolled products) is extremely bullish with rising demand
from beverage cans; especially in the emerging markets, consumer electronics
and automobile segment (with increased emphasis on weight reduction). Novelis
is the global leader in this segment.
Aluminium production
is expected to increase in line with the demand. The market surplus is going to
continue for a while. Strong prices have led many smelters to restart their
production in last one year. In addition some new smelters are on the verge of
delivering.
The cost push has
been felt in the recent times with rise in crude prices from the recent highs.
Most input costs such as fuel oil, coal tar pitch, and caustic soda have
increased along with the freight costs. Alumina costs for non integrated
smelters have gone up and may increase further, notwithstanding new capacity
additions, especially in the light of deteriorating bauxite quality, logistic
related issues for new projects, increasing capital requirement and higher
input costs.
The prices are
expected to continue to stay range bound over the short term with a large
inventory overhang. Aluminium inventories across the globe are near all time
high. But most of these inventories are reportedly bound in financing deals and
are not expected to flood the market. The long term fundamentals are strong
with the emergence of aluminium as an eminent metal with applications touching
several aspects of human life.
Business Outlook
The Company has
demonstrated the strength of its business model time and again especially in
last few years, fraught with lots of uncertainty and volatility. The Company’s
strategy to achieve global size and scale through the acquisition of Novelis
has demonstrated its merit and so far things have worked as per the plan. The
de-risked business model of Novelis, where LME is a pass through, its robust
product portfolio with over 50% going into manufacture of beverage cans and
strong presence in emerging markets has shown its strength and is now poised
for a transformational growth. It already has become value accretive for
subject and offers significant synergistic benefits going forward. These
company’s ongoing brownfield and Greenfield expansion plans are progressing
well notwithstanding the social, geo-political and other macroeconomic challenges.
These are exciting yet challenging times and the company is confident of
progressing on the laid out strategic path and achieve the desired global
footprints and scale.
Industry Review
Global Refined
copper consumption registered a smart recovery in CY 10 after two consecutive
years of decline in CY 08 and CY 09. Consumption rose to a level of 18.5
million tonnes in CY 10 clocking a growth of 8.5% over CY 09 despite 46% rise
in LME prices. As with the most metals
China continued to be the major demand driver, accounting for over 175% of
total demand growth in last 5 years. In 2005, China’s share of global copper
consumption was 22.6%, with Europe at 23% and the USA at 13.7%. In 2010,
China’s share had risen to 38.4%, with Europe declining to 17.3% and the USA to
8.9%. The biggest absolute declines in copper consumption have come in Japan,
Russia and North America. Much of this decline has come from consumption in end
products that were previously produced in these regions moving to China, while in
the USA, declining home construction and related consumer consumption have been
major reasons behind the collapse in copper demand. Global refined copper
production recorded a healthy growth of 4% in CY10 over CY 09 after witnessing
two years of marginal growth in CY 08 and CY 09. As the refined copper
production lagged the consumption, prices rose sharply to an average of 7533
$/t in CY10 from an average level of 5149 $/t in CY 09. Q-I of CY 11 saw the
price breaking the 10,000 $/t mark for the first time. The TC/RC for the CY
2010, were sharply lower than CY 09, when a sharp demand decline had provided a
window of opportunity to the custom smelter to book relatively better long term
terms. In CY 10, with the sharp improvement in demand for refined copper and
with supply side issues unresolved benchmark TC/RC were ~ % lower than CY 2009
benchmark.
Spot TcRc remained
depressed for most part of FY11 showing a significant volatility in the last
two quarters. The later part of CY 10 witnessed a smart recovery in spot TcRc
with a sharp bounce back to around 17 c/lb from a level of 3.5 c/lb in the
previous quarter. The smelters also suffered on account of incessant cost push
primarily driven by rising energy costs.
Business Performance:
The Copper
business performed well in a challenging macroeconomic environment. The company
recorded a strong production performance notwithstanding unexpected cooling
tower problem at Dahej that resulted in loss of
production. The
Company also managed its market mix well to improve overall copper
realizations.
The primary value
drivers of Indian copper smelter business are TCRC, acid realization, DAP
subsidy, duty differential and input prices. As seen above most value drivers
for the year were unfavourable. On this backdrop, their efforts to reduce the
impact of Tc/Rc on the smelter business have started yielding desired results.
Their copper
business today, in a way is a portfolio of various business opportunities
stemming out of the by-products.
On the production
front,
• The business
maintained its cathode production despite outage due to cooling tower collapse.
• The recovery
improvement trend is positive and so are the other efficiencies.
• It also increased
production of CC Rods in an effort to maximise the gains across the value
chain.
• New initiatives
were undertaken to replace ore with copper scrap
On the marketing
front, in addition to the higher CC rods sales, thrust on the focused markets and
increased by-product sales allowed us to negate the impact of lower Tc/Rc and
rising input costs. During the year significant improvements were achieved in
the operating performance. The company delivered highest ever production of
cathode, an improvement of 1% over the previous year despite loss of
production. DAP volumes too were 21% higher than the previous year. Today Dahej
ranks in top quartile of the Global cost competitiveness and is today by far
more robust, predictable and globally competitive business.
Copper Financials:
The sharp rise in
LME coupled with marginally higher sales volumes led to higher revenues, which
were increased by 18%. However, for custom smelters like the company, copper
prices are just a pass through and the margins are largely determined by Tc/Rc
and as a result a decline in LME copper prices did not have significant impact
on the profitability. Lower Tc/Rc, rising energy costs and appreciating rupee
adversely impacted the profitability of copper business. However, operational
improvements, better working capital management led to delivery of robust
performance and strong cash flows.
Copper Outlook:
The global refined
copper demand is expected to increase by around 5.5 % in CY2011. They expect
long term demand for copper to be strong on the back of infrastructural demand
from India, China and moderate demand growth from the western world. China will
continue to have lion’s share in the incremental growth and is expected
to account for
over 60% of incremental growth over next 5 years, thus accounting for around
44% of 2015 global estimated demand of ~ 24 Million tonnes.
In the medium term
supply is likely to be constrained as there is a deficit of concentrate on
account of delays in the expected new mine capacities, rising project costs and
associated risk / socio-political factors. Higher capital costs, declining ore
grades and labour related issues in some of the major copper producing
countries are expected to restrict the availability of concentrate over medium
term.
However, in the
shorter run, liquidity crunch, inflationary pressures, monitory tightening etc.
have resulted in demand moderation. This demand moderation, coupled with
closure of Japanese smelters, which produce around 7% of global refined copper
in the wake of earth quake/s and Tsunamis have resulted in temporary smelter
shutdowns. As a result the demand for concentrates has declined, while miners
continued to deliver. Hence Tc/Rc have improved substantially. They believe
that this scenario will continue for a while and this augurs well for the
company in the short term.
Business Outlook
The Company has
continued to perform creditably in these challenging times. It continues to
make steady progress on the planned growth track. The Company will continue to
strive to improve operating efficiencies and reduce conversion costs. Their
production flexibility with respect to various value added byproducts will
increase the available options for profit and cash flow improvements. Today
subject is well poised to emerge as “One Global Metal Business” with India
Centric Upstream business and Global Value Added Downstream business. The
company has embarked on an ambitious growth path with an announced investment
plan of over USD 6.5 billion in India and overseas in the next three years.
With these projects coming on stream and strong growth prospects from
downstream business subject is set for a quantum growth leap.
UNAUDITED
FINANCIAL RESULTS FOR THE QUARTER ENDED 31ST DECEMBER, 2011
Rs.
in Millions
|
Particulars |
Quarter Ended |
Nine Months Ended |
|
|
|
|
|
|
31.12.2011 [Unaudited] |
31.12.2011 [Unaudited] |
|
|
|
|
|
Income |
|
|
|
a) Net Sales / Income from Operations |
65902.300 |
187897.300 |
|
b) Other Operating Income |
567.400 |
1599.800 |
|
Total Operating Income |
66469.700 |
189497.100 |
|
Expenditure |
|
|
|
(a) (Increase)/decrease in Stock in Trade |
(3798.500) |
(6754.700) |
|
(b) Consumption of Raw Materials |
47763.500 |
127964.100 |
|
(c) Purchase of traded goods |
2.400 |
2047.400 |
|
(d) Employees Cost |
3039.700 |
8455.700 |
|
(e) Power and Fuel |
7384.700 |
21266.300 |
|
(f) Depreciation |
1747.200 |
5241.800 |
|
(g) Other Expenditure |
4928.700 |
14001.700 |
|
Profit / (Loss) From Operations before other Income Interest & Exceptional Items |
5402.000 |
17274.800 |
|
Other Income |
900.600 |
4436.000 |
|
Profit/(Loss) before Interest and Exceptional items |
6302.600 |
21710.800 |
|
Interest |
793.400 |
2135.700 |
|
Profit / (Loss) after interest before Exceptional items |
5509.200 |
19575.100 |
|
Exceptional Items |
0.000 |
0.000 |
|
Profit / (Loss) From
Ordinary activities before Tax |
5509.200 |
19575.100 |
|
Provision for Taxation |
|
|
|
- Current |
1002.300 |
3603.000 |
|
- Adjustment for earlier years (net) |
0.000 |
0.000 |
|
Net Profit/(Loss) From Ordinary activities after Tax |
4506.900 |
15972.100 |
|
Extraordinary Items |
0.000 |
0.000 |
|
Net Profit/(Loss) for the period |
4506.900 |
15972.100 |
|
Paid Up Equity Share Capital ( Face Value of the share Rs.1/- each) |
1914.800 |
1914.800 |
|
Reserves (Excluding Revaluation Reserves) |
-- |
-- |
|
Public Share
Holding |
|
|
|
Before
Extraordinary Items |
|
|
|
-Basic |
2.35 |
8.34 |
|
-Diluted |
2.35 |
8.34 |
|
Average of Public Share Holding |
|
|
|
- Number of Shares |
Nil |
1141500615 |
|
- Percentage of shareholding |
Nil |
59.62 |
|
Promoters and Promoter group share holding |
|
|
|
a) Pledged / Encumbered |
|
|
|
- Number of Shares |
-- |
-- |
|
- Percentage of share (as a % of the total shareholding of promoter and promoter group) |
-- |
-- |
|
- Percentage of shares(as a % of the total share capital of the company) |
-- |
-- |
|
b) Non-encumbered |
|
|
|
- Number of Shares |
Nil |
613797188 |
|
- Percentage of Share (as a % of the total shareholding of promoter and promoter group) |
Nil |
100.00 |
|
- Percentage of Share (as a % of the total share capital of the company) |
Nil |
32.06 |
SEGMENT WISE REVENUE,
RESULTS AND CAPITAL EMPLOYED UNDER CLAUSE 41 OF THE LISTING AGREEMENT
Rs.
in Millions
|
Particular |
Quarter Ended |
Nine Months Ended |
|
|
31.12.2011 [Unaudited] |
31.12.2011 [Unaudited] |
|
|
|
|
|
SEGMENT REVENUE |
|
|
|
Aluminium |
22361.900 |
65425.300 |
|
Copper |
44181.500 |
124201.800 |
|
Less: Inter Segment Revenue |
73.700 |
130.000 |
|
Net sales and
operating revenues |
66469.700 |
189497.100 |
|
|
|
|
|
SEGMENT RESULTS |
|
|
|
Aluminium |
3098.800 |
13378.100 |
|
Copper |
2158.900 |
5085.400 |
|
Less: Interest |
793.400 |
2135.700 |
|
Add: Other unallocated income net of unallocated expenses |
1044.900 |
3247.300 |
|
Profit before
tax |
5509.200 |
19575.100 |
|
|
|
|
|
CAPITAL EMPLOYED
|
|
|
|
Aluminium |
211722.300 |
211722.300 |
|
Copper |
70745.100 |
70745.100 |
|
Unallocated/corporate |
188731.000 |
188731.000 |
|
Total Capital
Employed |
471198.400 |
471198.400 |
NOTES:
·
Production activities at Alupuram, Kerala have
resumed from 24th December, 2011 consequent upon amicable3
settlement of labour disputes.
·
The company has filed a special leave petition with
Hon’ble Supreme Court against order of Hon’ble Allahabad High Court dated 23rd
December, 2011 upholding constitutional validity of Up Tax on entry of goods
into local areas act, 2007. Pending decision of the Hon’ble Supreme Court of
the SLP, no provision has been made for an estimated amount of Rs.1910.000
millions (including Rs.110.000 millions and Rs.330.000 millions for current quarter
and nine months of the current year, respectively) which may arise on this
account.
·
As per draft assessment order dated 27th
December, 2011 for the Assessment Year 2008-09, under provision of the Income
Tax Act 1961, the Assessing Officer has proposed addition on Rs.11560.000
millions in total income by considering guarantee as provision of service and
has imputed guarantee fee at the rate of 10.70% of loan amount on account of
purported arm’s length fee of corporate guarantee provided to foreign banks for
granting loan to wholly-owned foreign subsidiary for funding Novelis Inc.’s
acquisition. The company has filed objections before Dispute Resolution Panel
(DRP) against the said order which is pending. As on date no demand raised.
·
Disclosure relating to number of complaints from
investors during quarter.
|
Pending as on 1st
October, 2011 |
Received |
Resolved |
Pending as on 31st
December, 2011 |
|
0 |
15 |
15 |
0 |
·
Figures of previous periods have been regrouped/ reclassified
wherever necessary.
·
The above results have been reviewed by the Audit
Committee of the Board and have been taken on record at the meeting of the
Board of Director held on Thursday, 9th February, 2012. Limited
Review has been carried out by the statutory auditors of the company as per
clause 41 of the Listing Agreement with the stock exchanges.
FIXED ASSETS:
·
Mining Rights
·
Leasehold Land
·
Freehold Land
·
Buildings
·
Plant and Machinery
·
Vehicles and Aircraft
·
Furniture and Fittings
·
Railway Sidings
·
Live Stock
·
Computer Software
·
Technological Licenses
BUSINESS DESCRIPTION:
Subject is an India-based company. The Company operates in two segments: aluminum and copper. It is a company of the Aditya Birla Group. Aluminum comprises of hydrate and alumina, aluminum and aluminum products. Copper comprises of continuous cast copper rods, copper cathode, sulphuric acid, DAP and Complexes, gold and silver. The Company’s aluminium units across India encompass the entire gamut of operations, from bauxite mining, alumina refining, aluminium smelting to downstream rolling, extrusions and recycling. The Company’s projects include Greenfield projects and Brownfield projects. Greenfield expansion projects include Mahan Aluminium Project in Madhya Pradesh; the Aditya Alumina and Aluminium Project and the Utkal Alumina Project, both in Orissa, and the Jharkhand Aluminium Project. Subject Brownfield expansion projects include primary metal in Hirakud and alumina capacities in Belgaum and Muri. For the fiscal year ended 31 March 2010, Subject revenues decreased 8% to RS610.45B. Net income applic to common totaled RS39.25B, up from RS4.84B. Revenue reflect a significant decrease in income from Aluminium segments and a fall in income from others business segment. Net income was offset by a significant fall in trade purchase, lower manufacturing and other expenses and a decrease in depreciation expenses.
BOARD OF DIRECTORS:
Madhukar Manilal
Bhagat
Non-Executive
Independent Director
Mr. Madhukar Manilal Bhagat serves as the Non-Executive Independent Director of Subject. He holds B.Com, A.C.I.I (London), A.I.I.I. Passed Part- I of Fellowship Exams of Chartered Insurance Institute, London, Passed Intermediate Exam of Chartered Institute of Secretary, London. He is a Director of Aditya Birla Insurance Brokers Limited, Zenith Exports Limited, VCK Share and Stock Broking Services Limited, VCK Capital Market Services Limited
Ram Charan
Non-Executive
Independent Director
Mr. Ram Charan is Non-Executive Independent Director of Subject. Mr. Ram Charan has an acclaimed engineering degree and holds a MBA degree and a Doctorate from Harvard Business School. He has also served as a faculty of Harvard Business School.
Jagdish Khattar
Non-Executive
Director
Dr. Jagdish Khattar has been appointed as the Non-Executive Director of Subject. He has started his career as an IAS officer. He has also served as a Chief Executive Officer and Managing Director of Maruti Suzuki India Limited (formerly Maruti Udyog Limited) from 1999 to December, 2007.
Chaitan M. Maniar
Non-Executive
Independent Director
Mr. Chaitan M. Maniar serves as the Non-Executive Independent Director of Subject. He is an Advocate and Solicitor. He holds B.Com, M.A., L.L.B. He has been a Director of Foods and Inns Limited, Godfrey Phillips India Limited, Gujarat Ambuja Exports Limited, Varun Shipping Company Limited, Indo-Euro Investment Co. Limited, Indian Card Clothing Company Limited, Multi Commodity Exchange of India Limited, Vadilal Industries Limited, Pioneer Investcorp Limited, Sudal Industries Limited, TCPL Packaging Limited, Machine Tools (India) Limited, MCX Stock Exchange Limited, Financial Technologies India Limited, Utkal Alumina International Limited.
PRESS RELEASES:
BENCHMARKS
PARE LOSSES TO TRADE ABOVE NEUTRAL LINE
04 January 2012
India, January 04 -- Indian equities pared off losses to trade in green above neutral line in the late afternoon session as investors started accumulating blue chip front line counters. Traders were seen piling up position in PSU, Capital Goods and Metal sector while selling was witnessed in Auto, TECk and FMCG sector. However, market men were still reluctant as concerns over the euro zone's huge refinancing needs persist ahead of German and Portugal's bond auction but some encouraging comments and actions from Prime Ministers Mario Monti in Italy and Mariano Rajoy in Spain build the hopes. L and T and BHEL from Capital Goods space were seen trading firm in green helping the markets edge higher. SAIL, Hindalco, SesaGoa, Tata Steel and Sterlite from Metal pack were trading in green giving the much needed support. However, Bajaj Auto, M and M and Hero MotoCorp from Auto pack were seen trading in red driving the markets down. In the scrip specific development, JBM Auto and Jay Bharat Maruti were trading firm after the JBM group acquired 51% stake in UK-based engineering services company Tesco GO for an undisclosed sum to strengthen its domestic and global business. Kingfisher Airlines was trading weak in red on reports that the Central Board of Excise and Customs reportedly warned the cash-strapped airliner of appropriate legal action if it fails to pay service tax dues by January 6, 2012. On the global front, all Asian markets traded on a mix note while the European markets were too trading in mix. Back home, the NSE Nifty and BSE Sensex were trading above their psychological 4,750 and 15,900 levels, respectively. The market breadth on BSE was dominantly in favor of advances in the ratio of 1496:1060 while 120 scrips remained unchanged. The BSE Sensex is currently trading at 15,964.53 up by 25.17 points or 0.16% after trading as high as 16,004.69 and as low as 15,839.70. There were 16 stocks advancing against 14 declines on the index.The broader indices were trading on an optimistic note; the BSE Mid cap index gained 0.60% while Small cap rose 0.30%.On the BSE sectoral space, PSU up 1.45%, Capital Goods up 1.35%, Metal up 1.13%, Bankex up 1.00% and Power up 0.92% were the major gainers while Auto down 0.61%, TECk down 0.35%, FMCG down 0.34% and IT down 0.02% were the only losers in the space. Tata Motors up 3.71%, ICICI Bank up 2.84%, BHEL up 2.64%, Hindalco Industries up 2.12% and Tata Steel up 1.41% were the major gainers on the Sensex, while Bajaj Auto down 4.56%, M and M down 3.53%, Hero Motor down 2.45%, HUL down 2.23% and Bharti Airtel down 2.01% were the major losers in the index. Meanwhile, service sector activity in India improved in the month of December as the sector grew at the fastest pace since July on the back of strong new business and output growth. The encouraging service sector report came a day after manufacturing activity data showed that the sector resiliently bounced in the month of December as it accelerated at a swiftest pace in last six months, highlighting the fact that the Indian private sector output registered strong growth in the last month of 2011.According to the seasonally adjusted HSBC Business Activity Index, the service sector accelerated to 54.2 in December, as against 53.2 in the previous month of 2011. A figure above 50 signals expansion in production while, a number below 50 indicates contraction. Though the service sector growth in the month under review remained lower than the long-run series average, however, the purchasing managers' index (PMI) reading for the services sector, which measures the overall health of the sector, suggested that activity saw strongest improvement in business conditions in last five months. After showing signs of cooling and even slipping to a two and a half year low of 49.1 in October, the service sector has bounced back as new orders increased for the thirty-second straight month in December while outstanding business also rose after remaining broadly unchanged in the last two months. Besides, employment in the sector too rose in the month after six straight months of showing job losses. But, the rate of input cost inflation grew deeper as it rose at the fastest rate in four months, remained stubbornly above the long-run series average. Thus, the strong Manufacturing and Service sector PMI have propelled the HSBC Composite Index, which covers both the manufacturing and service sectors, to 54.7 in the 2011's last month, higher from 52.3 seen in November 2011. However, concerns over slowing domestic economic condition amid uncertainty over global growth prospects still pose potential downside risks for the sectors. The S and P CNX Nifty is currently trading at 4,765.40, higher by 0.10 points after trading as high as 4,782.85 and as low as 4,733.05. There were 23 stocks advancing against 27 declines on the index. The top gainers on the Nifty were HCL Tech up 4.39%, Tata Motors up 3.53%, ICICI Bank up 2.44%, BHEL up 2.32% and SAIL up 2.27%.Bajaj Auto down 4.37%, ACC down 3.27%, M and M down 3.24%, Ambuja Cement down 2.71% and Bharti Airtel down 2.34% were the top losers on the index. Asian markets were trading mixed; Jakarta Composite surged 1.12%, Nikkei 225 soared 1.24%, Straits Times advanced 0.66% and Taiwan Weighted gained 0.42%. On the flipside, Shanghai Composite plunged 0.27%, Hang Seng shed 0.80% and Seoul Composite declined 0.49%.The European markets traded on a mix note, France's CAC 40 dropped 0.60%, Germany's DAX shed 0.24% and Britain's FTSE 100 ascended 0.13%.
SENSEX
NEAR DAY'S LOW; NIFTY SLIPS NEAR 4,700 LEVEL
28 December 2011
India, December 28 -- The Indian equity markets extended losses and currently trading near low point of the day following a weak Asian cues, weighed down by banks. Investors remained cautious with a negative bias following a mixed batch of economic data from the U.S. and Japan. On sectoral front sustained selling was witnessed in bank, metal, realty and oil stocks. Stocks from automobile, consumer durables, capital goods and FMCG sectors too were mostly trading weak. However, Tata Power is up 2.2% on fairly strong buying at the counter following an announcement from the company that it would buy out BP Alternative Energy Holding's 51% stake in joint venture Tata BP Solar for an undisclosed amount. On the global front markets, the Asia-Pacific region markets were trading in red. Back home, the market breadth remained downbeat; there were 834 shares on the gaining side against 1,357 shares on the losing side while 127 shares remained unchanged. The BSE Sensex is currently trading at 15,756.42, down by 117.53 points or 0.74%. The index has a touched a high and low of 15,887.80 and 15,730.64 respectively. There were 8 stocks advancing against 22 declines on the index. The broader indices too were trading with a loss; the BSE Mid cap and Small cap indices dropped 0.81% and 0.59% respectively. The only gaining sector on the BSE was Power up by 0.52% while Bankex down 1.82%, Metal down 1.57%, Realty down 1.53%, Oil and Gas down by 1.12% and Consumer Durables (CD) down 0.89% were the top losers on the index. The top gainers on the Sensex were Tata Power up by 2.22%, NTPC up by 1.85%, BHEL up by 0.98%, Cipla up by 0.61% and Hero MotoCorp up by 0.32%. On the flip side, Jindal Steel down by 4.70%, ICICI Bank down 2.61%, JP Associates down 1.85%, Hindalco Industries down 1.76% and Sterlite Industries down 1.59% were the top loser on the Sensex. Meanwhile, in its bid to inject liquidity in the economy, the Reserve Bank of India (RBI) has decided to purchase government securities worth Rs 120000.000 Millions on December 29, 2011. The central bank will conduct open market operations (OMO) for purchasing the securities through multi-security auction using the multiple price method, the apex bank said in a statement. The move by RBI is consistent with the stance of monetary policy and based on the current assessment of prevailing and evolving liquidity conditions. The apex bank, in its mid quarter monetary policy review on December 16, 2011, had stated that OMOs would be conducted as and when considered appropriate. The RBI statement opined that auction will be in four price methods, government security (G-Sec) maturing 2017 with a coupon of 7.49%, G-Sec maturing 2018 with a coupon of 7.83%, G-Sec maturing 2021 with 7.80% and G-Sec 2022 with 8.08%. While there is an overall aggregate ceiling of Rs 120000.000 Millions for all the securities in the basket put together, there is also no security-wise notified amount. In the past month, the central bank has also purchased government securities of over Rs 243110.000 Millions from the money markets in three installments as part of its efforts to infuse liquidity into the system. The S and P CNX Nifty is currently trading at 4,705.55, lower by 44.95 points or 0.95%. The index has touched a high and low of 4,756.20 and 4,703.30 respectively. There were 7 stocks advancing against 43 declines on the index. The top gainers of the Nifty were NTPC up by 1.72%, Tata Power up by 1.66%, BHEL up by 1.12%, Ambuja Cement up by 0.61% and Cipla up by 0.45%.On the flip side, Jindal Steel down by 4.97%, PNB down by 3.09%, ICICI Bank down 2.95%, IDFC down 2.53% and Axis Bank down by 2.32% remained the top losers on the index. All the Asian equity indices were trading in the red; Shanghai Composite down 0.95%, Hang Seng was down by 0.84%, Jakarta Composite was down by 0.43, Straits Times was down by 0.37%, Seoul Composite was down by 0.85%, Taiwan Weighted was down by 0.40% and Nikkei 225 was down by 0.27%.
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.49.79 |
|
|
1 |
Rs.78.79 |
|
Euro |
1 |
Rs.65.74 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
8 |
|
OPERATING SCALE |
1~10 |
8 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
9 |
|
--PROFITABILIRY |
1~10 |
9 |
|
--LIQUIDITY |
1~10 |
9 |
|
--LEVERAGE |
1~10 |
8 |
|
--RESERVES |
1~10 |
9 |
|
--CREDIT LINES |
1~10 |
8 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
75 |
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.