MIRA INFORM REPORT

 

 

Report Date :

14.05.2012

 

IDENTIFICATION DETAILS

 

Name :

MONNET ISPAT AND ENERGY LIMITED (w.e.f  12.01.2006)

 

 

Formerly Known As :

MONNET ISPAT LIMITED

 

 

Registered Office :

Monnet Marg, Mandir Hasaud, Chhattisgarh - 492101, Raipur

 

 

Country :

India

 

 

Financials (as on) :

31.03.2011

 

 

Date of Incorporation :

01.02.1990

 

 

Com. Reg. No.:

10-009826

 

 

Capital Investment / Paid-up Capital :

Rs. 643.550 Millions

 

 

CIN No.:

[Company Identification No.]

L02710CT1990PLC009826

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

DELM09084F

 

 

PAN No.:

[Permanent Account No.]

AAACM0501D

 

 

Legal Form :

Public limited liability company. Company’s shares are listed on the Stock Exchanges

 

 

Line of Business :

Manufacturers of Sponge Iron, Steel and Ferro Alloys.

 

 

No. of Employees :

100 (Approximately)

 

 

RATING & COMMENTS

 

MIRA’s Rating :

A (64)

 

RATING

STATUS

PROPOSED CREDIT LINE

 

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

Fairly Large

 

 

Maximum Credit Limit :

USD 83000000

 

 

Status :

Good

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

Comments :

Subject is an established company having fine track. Financial position of the company appears to be sound. Trade relations are reported as fair. Business is active. Payments are reported to be regular and as per commitments.

 

The company can be considered normal for business dealings at usual trade terms and conditions. 

 

 

NOTES:

 

Any query related to this report can be made on e-mail: infodept@mirainform.com while quoting report number, name and date.

 

 

ECGC Country Risk Classification List – September 30, 2011

 

Country Name

Previous Rating

(30.06.2011)

Current Rating

(30.09.2011)

India

A1

A1

 

 

 

 

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

LOCATIONS

 

Registered Office / Factory 1:

Monnet Marg, Mandir Hasaud, Raipur - 492101 Chhattisgarh, India

Tel No. :

91 - 771 - 2471 334 – 339

Fax No. :

91 - 771 - 2471 250

E-Mail :

monnet@monnetgroup.com

monnetraipur@monnetgroup.com

Website :

http://www.monnetgroup.com

 

 

Corporate Office :

Monnet House, 11, Masjid Moth, Greater Kailash Part-ll, New Delhi-110048, Delhi, India

Tel. No.:

91-11-29218542 / 46

Fax No.:

91-11-29218541

E-mail :

monnet@monnetgroup.com

isc_miel@monnetgroup.com

 

 

Factory 2 :

Village - Naharpali, Tehsil Kharsia, District Raigarh,  Chhattisgarh, India

Tel No. :

91 – 7762- 275451/ 52

Fax No. :

91 – 7762-275455

E-Mail :

mielrgh@monnetgroup.com

 

 

Factory 3 :

Village - Milupara, Block-Tamnar, District Raigarh, Chhattisgarh, India

 

 

Factory 4 :

Monnet Power Company Limited
Village – Malibrahmani, P. O. – Nisha – 759130 Via – Kosala, District. -Angul, Orissa, India

Tel No. :

91-6764-224001 / 224002

Fax No. :

91-6764-224003

E-Mail :

angul@monnetgroup.com

 

 

DIRECTORS

 

As on 30.09.2011

 

Name :

Mr. M. S. Gujral

Designation :

Chairman and Director

 

 

Name :

Mr. Sandeep Jajodia

Designation :

Executive Vice-Chairman and Managing Director

 

 

Name :

Mr. C. P. Baid

Designation :

Dy. Managing Director

 

 

Name :

Mr. K.K. Khanna

Designation :

Executive Director

 

 

Name :

Mr. G.C. Mrig

Designation :

Non Executive Director

 

 

Name :

Mr. Ajay Relan

Designation :

Non Executive Director

 

 

Name :

Mr. Gopal Tiwari

Designation :

Non Executive Director

 

 

Name :

Mr. J.P. Lath

Designation :

Non Executive Director

 

 

KEY EXECUTIVES

 

Name :

Mr. M.P. Kharbanda

Designation :

Company Secretary

 

 

Board Committees

 

Audit Committee

 

Mr. M.S. Gujral, Chairman

Mr. G.C. Mrig, Member

Mr. Gopal Tiwari, Member

Mr. M.P Kharbanda, Secretary

 

 

Shareholders / Investors' Grievance Committee

Mr. M.S. Gujral

Mr. Sandeep Jajodia

Mr. J.P. Lath

 

 

Remuneration Committee

 

Mr. M.S. Gujral

Mr. G.C. Mrig

Mr. J.P. Lath

 

 

Finance Committee

 

Mr. Sandeep Jajodia

Mr. C.P. Baid

Mr. J.P. Lath

 

 

Executive Committee

 

Mr. Sandeep Jajodia

Mr. C.P. Baid

Mr. J.P. Lath

 

 

Share Transfer Committee

 

Mr. J.R Lath

Mr. C.P. Baid

Mr. M.P Kharbanda

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

(AS ON 31.03.2012)

 

Category of Shareholders

No. of Shares

Percentage of Holding

(A) Shareholding of Promoter and Promoter Group

 

 

(1) Indian

 

 

Individuals / Hindu Undivided Family

254448

0.40

Bodies Corporate

25509725

39.65

Any Others (Specify)

6046168

9.40

Directors/Promoters & their Relatives & Friends

6046168

9.40

Sub Total

31810341

49.44

(2) Foreign

 

 

Total shareholding of Promoter and Promoter Group (A)

31810341

49.44

(B) Public Shareholding

 

 

(1) Institutions

 

 

Mutual Funds / UTI

1152439

1.79

Financial Institutions / Banks

129018

0.20

Insurance Companies

681982

1.06

Foreign Institutional Investors

23352671

36.30

Any Others (Specify)

25316110

39.35

Foreign Bank

 

 

Sub Total

 

 

(2) Non-Institutions

 

 

Bodies Corporate

5379930

8.36

Individuals

 

 

Individual shareholders holding nominal share capital up to Rs. 0.100 million

1567398

2.44

Individual shareholders holding nominal share capital in excess of Rs. 0.100 million

168760

0.26

Any Others (Specify)

95268

0.15

Hindu Undivided Families

81282

0.13

Non Resident Indians

9690

0.02

Directors & their Relatives & Friends

2296

--

Trust & Foundation

2000

--

Sub Total

7211356

11.21

Total Public shareholding (B)

32527466

50.56

Total (A)+(B)

64337807

100.00

(C) Shares held by Custodians and against which Depository Receipts have been issued

--

--

(1) Promoter and Promoter Group

--

--

(2) Public

--

--

Sub Total

--

--

Total (A)+(B)+(C)

64337807

100.00

 

 

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturers of Sponge Iron, Steel and Ferro Alloys.

 

 

Products :

Item Code No. (ITC Code)

Product Description

72.07

Mild Steel

72.03

Sponge Iron

72.02

Sponge Iron

NA

Power

 

 

PRODUCTION STATUS

 

Particulars

Units

As on 31.03.2011

 

 

 

A. * Installed Capacity at Raipur

 

 

-Sponge Iron MS /SS Products

MT

300000

a) - Ingots & Billets

MT

300000

b) - Structural Steel

MT

200000

- Ferro Alloys**

MT

58400

- Power

MW

60

 

 

 

  * Installed Capacity at Raigarh

 

 

- Sponge Iron

MT

500000

- Power

MW

90

 

 

 

B. Production

 

 

- Sponge Iron

MT

692096

- MS /SS Products

MT

41956

-Structural Steel

MT

39289

- Ferro Alloys

MT

8606

-Coal

MT

951930

- Power

‘000 Units

969075

 

* As certified by the Management and relied upon by the Auditors being a technical matter.

** Includes 12000 MT on Lease

 

 

GENERAL INFORMATION

 

No. of Employees :

100 (Approximately)

 

 

Bankers :
  • Axis Bank Limited
  • Bank of Baroda
  • Punjab National Bank
  • Oriental Bank of Commerce
  • State Bank of Bikaner and Jaipur
  • State Bank of Hyderabad
  • Central Bank of India
  • Bank of India
  • Union Bank of India
  • State Bank of India
  • State Bank of Mysore
  • State Bank of Patiala
  • State Bank of Travancore
  • Syndicate Bank
  • UCO Bank
  • Yes Bank Limited

 

 

Facilities :

SECURED LOANS

(Rs. In

Millions ) 31.03.2011

(Rs. In

Millions ) 31.03.2010

A. TERM LOANS

 

 

From Banks

3272.620

2595.157

B. WORKING CAPITAL FACILITIES

 

 

From Banks

2692.508

2841.524

C. AGAINST HIRE PURCHASE

 

 

From Banks

3.465

7.816

From Limited Companies

1.342

2.127

D. EXTERNAL COMMERCIAL BORROWING (ECB)

10358.800

4062.600

E. NON CONVERTIBLE DEBENTURE

3000.005

3000.006

Total

19328.740

12509.230

Notes

1 (a) Term Loans, External Commercial Borrowings (ECB) and Non Convertible Debentures (NCD) from financial institutions / Banks, are secured by first charge on all immovable and movable assets (present and future) of the company (subject to prior charges on movables in favour of working capital banks) ranking pari - passu with the charges created in favour of participating financial institutions. Some of the loans/facilities are further guaranteed by the Managing Director of the company.

 

(b) Loans shown above include new Loans taken during the year for which security documents have been executed.

 

2. Working capital facilities from banks are secured by first charge on movable current assets and second charge on all immovable assets of the company. These working capital loans are further guaranteed by Managing Director of the company.

 

3 Loans from Limited Companies/Banks against hire purchase are secured by hypothecation of the respective assets purchased on hire purchase basis.

 

4. Short term loan from PNB is secured by 1st charge on current assets of the company alongwith working capital banks.

 

 

 

UNSECURED LOANS

(Rs. In

Millions ) 31.03.2011

(Rs. In

Millions ) 31.03.2010

Foreign Currency Convertible Bonds

0.000

862.174

0% Full Convertible Debentures

392.625

525.000

Loan From Banks

6997.241

1053.432

Total

7389.866

2440.606

 

 

 

Banking Relations :

--

 

 

Auditors :

 

Name :

O.P. Bagla and Company

Chartered Accountants

Address :

New Delhi, India

 

 

Enterprise where KMP has significant influence:

A.P. COAL Washeries Private Limited

 

 

Associates/Subsidiaries :
  • Monnet Global Limited
  • Monnet Overseas Limited
  • Monnet Daniel Coal Washeries Private Limited
  • Monnet Power Company Limited
  • Monnet Cement Limited
  • Monnet Enterprises PTE Limited
  • Rameshwaram Steel and power Private Limited
  • Chattel Constructions Private Limited
  • Chomal Exports private limited

 

 

Joint Ventures :

 
  • MP Monnet Mining Company Limited
  • Mandakini Coal Company Limited
  • Urtan North Mining Company Limited

 

 

CAPITAL STRUCTURE

 

As on 31.03.2011

 

Authorised Capital :

 

No. of Shares

Type

Value

Amount

 

 

 

 

132000000

Equity Shares

Rs. 10/- each

Rs. 1320.000 Millions

 

 

Issued, Subscribed & Paid-up Capital :

 

No. of Shares

Type

Value

Amount

 

 

 

 

64337807

Equity Shares

Rs. 10/- each

Rs. 643.378 Millions

 

Add : Shares Forfeited

 

Rs. 0.172 Million

 

Note:

 

4722539 Equity shares of Rs. 10/- each were allotted as fully paid up for consideration other than cash to issued pursuant to scheme of amalgamation of Mounteverest Trading and Investment Limited with the company as per order dated 19.11.2010 passed by Honourable High Court of Chattisgarh.

 

6932647 Equity shares of Rs. 10/- each were allotted as fully paid up for consideration other than cash to issued pursuant to scheme of amalgamation of Monnet Power Limited with the company as per order dated 24.09.2004 passed by Honourable High Court of Chattisgarh.

 

 

 

 

 

 

 

Total

 

Rs. 643.550 Millions


 

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

643.550

544.786

479.631

2] Subscription Against Share Warrants

0.000

268.825

0.000

3] Share Application Money

0.000

0.000

0.000

4] Reserves & Surplus

20257.806

15916.860

12383.016

5] (Accumulated Losses)

0.000

0.000

0.000

NETWORTH

20901.356

16730.471

12862.647

LOAN FUNDS

 

 

 

1] Secured Loans

19328.740

12509.230

10168.542

2] Unsecured Loans

7389.865

2440.605

3083.256

TOTAL BORROWING

26718.605

14949.835

13251.798

DEFERRED TAX LIABILITIES

1412.382

1319.333

1139.522

 

 

 

 

TOTAL

49032.343

32999.639

27253.967

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

10937.132

11283.170

11268.854

Capital work-in-progress

15127.363

7212.132

3096.626

 

 

 

 

INVESTMENT

5500.091

5454.039

2156.279

DEFERREX TAX ASSETS

0.000

0.000

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories
3604.253
2188.051
1844.559

 

Sundry Debtors
1897.968
1288.661
1097.324

 

Cash & Bank Balances
6881.100
2052.423
2455.848

 

Other Current Assets
0.000
0.000
0.000

 

Loans & Advances
8534.258
5898.310
6827.116

Total Current Assets
20917.579

11427.445

12224.847

Less : CURRENT LIABILITIES & PROVISIONS
 

 

 

 

Sundry Creditor
1907.372
1491.496
1436.826

 

Other Current Liabilities
464.900
311.542
282.312

 

Provisions
1077.550
758.317
599.342

Total Current Liabilities
3449.822

2561.355

2318.480

Net Current Assets
17467.757

8866.090

 

 

 

 

 

MISCELLANEOUS EXPENSES

0.000

184.208

825.841

 

 

 

 

TOTAL

49032.343

32999.639

27253.967

 

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

 

31.03.2011

31.03.2010

31.03.2009

 

SALES

 

 

 

 

 

Income

15730.493

14806.952

15487.259

 

 

Other Income

293.217

317.501

476.665

 

 

TOTAL                                     (A)

16023.710

15124.453

15963.924

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Material, Manufacturing and Others

10115.706

8502.298

9966.914

 

 

Increase/Decrease In Stocks

(436.952)

218.961

444.878

 

 

Salaries, Wages and Amenities

746.286

733.031

608.163

 

 

Repair and Maintenance

119.370

91.789

56.274

 

 

Administrative, Selling and Other Expenses

688.147

620.836

664.330

 

 

Loss on Sale of Investments

0.000

0.000

157.039

 

 

TOTAL                                     (B)

11232.557

10166.915

11897.598

 

 

 

 

 

Less

PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B)      (C)

4791.153

4957.538

4066.326

 

 

 

 

 

Less

FINANCIAL EXPENSES                         (D)

437.207

927.885

706.045

 

 

 

 

 

 

PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D)                                       (E)

4353.946

4029.653

3360.281

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

738.638

716.655

653.038

 

 

 

 

 

 

PROFIT BEFORE TAX (E-F)                               (G)

3615.308

3312.998

2707.243

 

 

 

 

 

Less

TAX                                                                  (H)

803.732

621.955

547.202

 

 

 

 

 

 

PROFIT AFTER TAX (G-H)                                (I)

2811.576

2691.043

2160.041

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

8067.514

6036.554

4434.255

 

 

 

 

 

 

BALANCE B/F ON AMALGAMATION

0.000

116.427

0.000

 

 

 

 

 

Less

APPROPRIATIONS

 

 

 

 

 

Transfer to General Reserve

282.000

270.000

220.000

 

 

Transfer to Debenture Redemption Reserve

315.026

172.049

57.200

 

 

 

 

 

Less

Dividend

 

 

 

 

 

- Proposed Dividend on Equity Shares

321.689

285.876

239.790

 

 

- Interim Dividend on Equity Shares

25.030

0.000

0.000

 

 

- Corporate Dividend Tax

52.186

48.585

40.752

 

 

 

 

 

 

BALANCE CARRIED TO THE B/S

9883.160

8067.514

6036.554

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

 

 

 

 

 

Export Earnings

813.119

466.427

511.714

 

TOTAL EARNINGS

813.119

466.427

511.714

 

 

 

 

 

 

IMPORTS

 

 

 

 

 

Raw Materials

0.000

10.054

136.712

 

 

Capital Goods including Spares

1018.015

68.217

255.185

 

TOTAL IMPORTS

1018.015

78.271

391.897

 

 

 

 

 

 

Earnings Per Share (Rs.)

 

 

 

 

Basic (Rs.)

48.61

53.64

42.98

 

Diluted (Rs.)

46.91

47.73

39.02

 

 

QUARTERLY / SUMMARISED RESULTS

 

PARTICULARS

 

30.06.2011

30.09.2011

31.12.2011

Type

1st Quarter

2nd Quarter

3rd Quarter

 Sales Turnover

4271.700

4585.500

4810.100

 Total Expenditure

3109.200

3390.900

3558.100

 PBIDT (Excl OI)

1162.500

1194.600

1252.000

 Other Income

112.000

66.500

107.500

 Operating Profit

1274.800

1261.100

1359.500

 Interest

132.000

116.400

188.300

 Exceptional Items

0.000

0.000

0.000

 PBDT

1142.500

1144.700

1171.200

 Depreciation

185.900

186.500

190.300

 Profit Before Tax

956.600

958.200

980.900

 Tax

225.100

188.800

250.400

 Reported PAT

731.500

769.400

730.500

Extraordinary Items       

0.000

0.000

0.000

Prior Period Expenses

0.000

0.000

0.000

Other Adjustments

0.000

0.000

0.000

Net Profit

731.500

769.400

730.500

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2011

31.03.2010

31.03.2009

 

PAT / Total Income

(%)
17.55
17.79
13.53

 

 
 
 
 

Net Profit Margin

(PBT/Sales)

(%)
22.98
22.37
16.96

 

 
 
 
 

Return on Total Assets

(PBT/Total Assets}

(%)
11.35
14.59
11.52

 

 
 
 
 

Return on Investment (ROI)

(PBT/Networth)

 
0.17
0.20
0.21

 

 
 
 

 

Debt Equity Ratio

(Total Liability/Networth)

 
1.51
1.05
1.21

 

 
 
 
 

Current Ratio

(Current Asset/Current Liability)

 
6.06
4.26
5.27

 

 

LOCAL AGENCY FURTHER INFORMATION

 

Check list by info Agents

Available in Report (Yes/ No)

Year of Establishment

Yes

Locality of the Firm

Yes

Constitution of the Firm

Yes

Premises details

No

Type of Business

Yes

Line of Business 

Yes

Promoter’s Background 

Yes

No. of Employees

Yes

Name of Person Contacted

No

Designation of Contact person

No

Turnover of Firm for last three years

Yes

Profitability for last three years

Yes

Reasons for variation <> 20%

--------------

Estimation for coming financial year

No

Capital in the business

Yes

Details of sister concerns

Yes

Major Suppliers

No

Major Customers

No

Payments Terms

No

Export/ Imports Details (If applicable)

No

Market Information

---------------

Litigations that the firm/ Promoters Involved in

------------

Banking details

Yes

Banking Facility Details

Yes

Conduct of the Banking Account

------------

Buyer visit details

----------

Financials, if provided

Yes

Incorporation details is applicable

Yes

Last Accounts filed at ROC

Yes

Major Shareholders, if available

Yes

 

 

COMPANY PERFORMANCE;
 
During the year under report, various divisions reported the production as below:
 
Production

Units

 
2011
 
2010
 
Increase/(Decrease)
 
M.S./S.S. Products 

MT

 
41956                      
115325
 
(63.62)  
Structural Steel

MT

 
39289                       
90714
 
(56.69)
 
Ferro Alloys       

MT

 
8606                             
0  
NA
 
Coal

MT

 
      951930                      
1000119
 
(4.82)
 
Power

Units in`000

 
969075                      
1020661
 
(5.05)
 
 
During the year, there have been no capacity additions at the plant.  The production in all segments of the business were more or less in line with the previous year except steel where the Company chose to sell power rather than   making steel.  The power sales generated better   profitability therefore; the lower production of steel does not manifest a decline in the performance of the company.
 
 
STATUS OF EXPANSIONS:
 
Steel:
 
The  Steel  expansion at Raigarh gearing to make a total capacity  of  1.50  million  tons  is  progressing in all the  modules  viz.  additional  power  capacity  of 80 MW, Blast Furnace, Sinter Plant, Rebar Mill, Steel  Melting  Shop and Plate Mill. The project is as per the schedule and is likely to be commissioned as per the dates published by the Company on its website.
 
Power (MPCL);
 

The work on power plant of 1050 MW being set up in MPCL is also progressing after initial delay owing to delayed receipt of environmental clearance and sorting  out of problems in some parcels of the land procurement. The  site  is  mobilized  both  by BHEL and Indure, the two  EPC  contractors  of  the  project. The project has also tied up the sale and evacuation of the power.

The progress on the mines which will supply the coal to the power plant  is  satisfactory  and  the  mines  are expected to be  ready  well  before  the  commercial operation of the power project.

 
NEW JOINT VENTURE:
 

Your  Company has formed a Joint Venture Company namely  Monnet  Ecomaister  Enviro  Private  Limited with Ecomaister Company Limited of  Korea  having  50:50  partnership.  A Slag Handling Plant is being setup within Company`s Plant.

This   facility will be environmentally protective   and   commercially profitable.  Using molten slag which is otherwise a waste by-product, the technology will first recover metal content from the slag and the remainder will be converted into a valuable industrial product that finds variety of uses in Korea and European Countries.

 
AWARDS:
 
Star  Brands (India), a research oriented summation across industries  from Indian consumers to select strongest brands on each industry, has  reckoned the company among top 200 companies that have created huge  brand  recall amongst the business consumers.

 

 

A. CONSERVATION OF ENERGY:
 

The  Company  has taken a number of steps to improve  the  conservation  of energy  by  increasing  the  efficiency of raw  material  inputs  in  power generation  and by reducing/eliminating consumption wastages.  Conservation of energy and improving the efficiency of existing resources are continuing processes  and  form an integral part of responsibilities  of  departmental heads. Various steps taken in this direction are as follows:

 

 

a] Energy conservation measures taken:

 

- Optimization of Steam Generation & condensate recover system

 

- Optimization of Heat Recovery from flue gases.

 

- Optimization of capacity utilization, thus reducing specific consumption of energy

 

-  Optimization  of pump & motor operations through application of  BFD  in WHRB-1

 

- Optimization of Elimination of one I.D. Fan, RA., F.D. and CEP in WHRB-2, AFBC-2 & TG-III

 

- Strict control of Quality inputs, resulting in less slag generation, thus saving electricity consumption

 

- Utilization of Ignite Oil in place of LDO in SID

 

- Utilization of all size fractions of coal Minimization of handling losses

 

- Automation of RMHS Circuit by operating through PLC

 

-  Reduction of power consumption of Kilns by installing VWF Drive for LOB compressors and CB Fans of kilns

 

-  Implimentation of online oversize Coal recirculating system in DRI to reduce HSD Consumption and Ground wash

 

b] Additional Investments and proposals, if any, being  implemented  for reduction of consumption of energy.

 

VFD installation for WHRB-3&4 ID fan, AFBC-1, ID, FD and FD fan of AFBC-2 proposed

 

c]  Impact  of  measures  of [a] and [b]  above  for  reduction  of  energy consumption and consequent impact on the cost of production of goods.

 

The per ton power consumption has been under control

 

d] Total energy consumption and energy consumption per unit of production is as per Form A annexed.

 
 
INDUSTRY STRUCTURE AND DEVELOPMENT/RISKS & CONCERNS:
 
India  is  the largest producer of DRI in the world as per  the  production figures  till December, 2010 and it has held the said position since  2002. 
The growth of DRI in India is mainly attributable to domestic availability of Coal and Iron Ore, the two principal raw materials  for  the viability of sponge iron industry in India isallotherm 5th largest crude steel producer in the world as per the world steel production of 2010. The  world steel  production  has registered an increase of 15% at 1414  million  tons over  2009 and India`s production of steel has grown from about 63  million tons  in 2009 to about 67 million tons in 2010, an increase of  6%.  China, the largest producer of steel increased its production from 573 million tons to 626 million tons in 2010, an increase of 9%. While China  continues to  be dominant player in the steel industry globally, India is  poised  to become the 2nd largest steel producer in the world over five years based on the planned steel capacities in the country and will overtake the countries like Japan, U.S.A. and Russia currently before India.
 
The key factors for the development of India`s sponge iron as well as steel industry remains the domestic USP of raw material  availabilities.  The development  and  commercialization of mining sector in India will  play  a crucial  role  in  the positioning of Indian steel  industry  not  only  in domestic  market but also in the global scene, in the next few  years.  The joint thrust of the Government and private sector in this regard will play a pivotal role. Besides, the Government is taking necessary steps including R and D to promote the per capita consumption of steel  in  the  domestic market. In the global snap-shot, the industry will see a paradigm shift of steel production from countries which are devoid of mineral resources to locations and regions which have the advantage of these natural resources. India is in a unique position in the global hemisphere in this regard and has a distinct edge to capitalize this opportunity.

 

OPPORTUNITIES AND THREATS/OUTLOOK:
 
India`s thrust  on  the development of the  infrastructure  is  the  basic ingredient  for  the development of the steel industry. The growth in the industry over the next few years is correlated to the growth in the GDP backed by a strong investment cycle in the industrial and infrastructure space.  The  acceleration  in  the economic  environment  will  also  boost personal  consumption  particularly in the utility  sector.  Therefore, it creates a strong climate for the steel industry both for the long as well as the flat products.
 
However, a strong administrative and legislative action in respect of appropriate policy pronouncements and procedures is required to push the investments in infrastructure and resultantly in the steel sector. Any lag in providing the policy actions will have the potential of dragging the growth in the sector. Besides, the mining activity needs to respond both at the Government level and development level for productive and profitable development of the sector.
 
The overall outlook on the sector assuming a consistent performance of economy looks quite encouraging. The steel companies with own resource base are essentially in a secured corridor in terms of the future growth.  The capacity expansions are required to be driven by the availability of captive resources.  The sector has become more dependent on raw material source than the market performance of the industry.

 

 

FIXED ASSETS:

 

  • Land and Site Development
  • Lease hold land
  • Railway Siding
  • Building
  • Plant and Machinery
  • Furniture and Fixtures
  • Vehicle

 

 

AS PER WEBSITE DETAILS:

 

MONNET ISPAT & ENERGY LIMITED ANNOUNCES Q2FY12 RESULTS

 

Total Income at Rs 4810.000 Millions Net profit at Rs 730.000 Millions

(Rs. In Millions)

Particulars

Quarter ended

30.09.2011

Quarter ended

30.09.2010

Total Income

4810.100

3471.400

EBITDA

1252.000

1109.200

Depreciation

190.300

188.800

Interest

188.300

53.700

PAT

730.500

701.800

Cash Profit

974.300

935.600

 

 

New Delhi, February 14, 2012:

 

Subject a flagship company of Monnet Group, the second largest coal-based sponge iron producer in the country announced its third quarter results for FY12.

 

Financial Update

 

For the third quarter ended December 31, 2011, the company reported a turnover of Rs. 4810.100 Millions as against Rs 3471.400 Millions in the corresponding quarter registering a growth of 38.56%. The operating profit stood at Rs 1252.000 Millions, registering an increase of 12.87% as compared to Rs 1109.200 Millions in the corresponding quarter. Net profit for Q3FY12 stood at Rs 730.500 Millions, registering an increase of 4.08% as compared to Rs 7018.000 Millions in Q3FY11.

 

Due to an increase in the interest expense by Rs. 134.600 Millions in the current quarter as compared to the corresponding quarter there has been a marginal decline in the net profit by 5%. However the operating margins have declined from 30% to 25% on account of steep appreciation of iron ore prices by about 35% and the corresponding increase in the price of sponge iron by only 18%.

 

On a sequential basis the turnover is up to Rs. 4810.000 Millions from Rs. 4580.000 Millions in the previous quarter and the operating profit is higher at Rs. 1250.000 Millions against Rs. 1190.000 Millions in the previous quarter. The net profit however is down to Rs. 730.000 Millions from about Rs. 770.000 Millions on account of higher impact of interest expenses.

 

The expansion in the 1.5 MTPA integrated steel project at Raigarh is progressing well. The company expects to sell power from its 80 MW power plant from the current month. The various modules of the steel plant starting from bar mill are going to roll out from first to third quarter of the next financial year.

 

Similarly the implementation of the power plant of 1050 MW is also progressing as per schedule. The company is receiving the supplies from key vendors like BHEL as per the plan and has mobilized manpower and infrastructure at site to accelerate the implementation of the plant. Monnet Power Company Limited (MPCL) has also received the terms of reference relating to the environmental clearance from MOEF and is starting the financial closure of the project in the current quarter. As reported earlier MPCL is putting up additional 660 MW power plant at the same site and is fully equipped in terms of the land requirement and fuel for the same.

 

Subject has also received Stage II of forest clearance of Utkal Mine in the previous quarter and is hoping to sign the mining lease shortly.

 

For the nine months ended December 31, 2011, turnover stood at Rs 13667.300 Millions as compared to Rs 11281.700 Millions in 9MFY11; an increase of 21.11%. The EBIDTA stood at Rs. 3608.800 Millions as compared to Rs. 3368.900 Millions, an increase of 7.1%.

 

 

Commenting on the results, Mr. Sandeep Jajodia, Executive Vice

 

Chairman & Managing Director, MIEL, said, “The steel industry is passing through very challenging times on account of inadequate availability of key raw materials like coal and iron ore accompanied by the pricing pressure. Monnet is trying to negotiate its way by managing raw material balances on most cost competitive terms. We are trying to operate plants at high levels of efficiencies both in terms of production and costs manifested by our performance in the previous quarter.”

 

 

About Monnet Group:

 

Monnet Ispat & Energy Limited (MIEL): MIEL is promoted by Mr. Sandeep Jajodia. Its principal activities include manufacturing and marketing of Sponge Iron, Steel and Ferro Alloys. In addition, MIEL is engaged in mining of mineral assets like coal & iron ore and is also involved in the generation of

power for captive consumption. The Monnet Group has manufacturing facilities in Raipur and Raigarh in Chhattisgarh and is currently in the midst of implementing a 1.5 Million Tons integrated steel plant to produce plates, structural and rebar’s at its facility at Raigarh in Chhattisgarh to cater to the

high growth infrastructure sector. MIEL through its subsidiary is now making measure of forays in the development of Merchant Power Plants and is currently implementing the first 1050 MW power plant at Angul.

 

Monnet Power Company Limited (MPCL): MPCL is currently executing thermal power plant of IPP of 1050 MW backed with pit head captive coal mine in Angul, Orissa.The project consists of 2 units of 525 MW to be supplied by BHEL.

The project has all its statutory approvals & clearances in place and has achieved financial closure. The capacity is further being enhanced to 1710 MW by adding additional 660 MW at the same sites.

 

Monnet Global Limited (MGL): MGL a wholly owned subsidiary of Monnet Ispat & Energy Limited having offices in Dubai, Jakarta and Johannesburg (South Africa), does all the global acquisitions and mergers for the Group.

 

 

MONNET GROUP PRESENTS “FIGHT NIGHT – INDIA VS. RUSSIA”

 

  • “Monnet Fight Night – Boxing Ka Mahasangram”: A bilateral boxing competition between top pugilists from India and Russia organized by Monnet Ispat & Energy Limited at the swanky Hotel in the presence of who’s who of Chhattisgarh’s political establishment and India’s leading industrial power houses.
  • Monnet Ispat & Energy Limited, proud sponsors of the Indian Boxing Team keeping in sync with their overall commitment to the sport in the country has initiated the Monnet Boxing Fight Night which could be perceived as a developmental vehicle for our future Olympians.
  • Exciting Talent of the likes of  Shiva Thapa, Manoj Kumar, Kuldeep Singh, Paramjeet Samota and Manpreet Singh  from India pitched against  Russian youth sensations of the likes of Alikhan Avtarkhanov, Roman Usikov, Lev Cherevko, Dmitry Zaytsev, Irakliy Sharvashidze.

 

 

05th February 2012, Raipur: 

 

The Monnet Boxing Fight Night saw boxers from India face their toughest challenge yet as they battled it out with pugilists Russia at the swanky premises of a hotel lawn at, Raipur on 05th February, 2012 at 6 pm. A boisterous crowd comprising of the political bigwigs and corporate honchos alike were witness to what one could describe as an action packed evening of fun, glamour twisting tales.

 

Monnet Ispat & Energy Limited, an industrial conglomerate and the second largest coal-based Sponge Iron manufacturer with thriving facilities in Raipur and Raigarh in the State of Chattisgarh, decided to host this unique and exciting concept at Raipur which is considered by many as the next sporting destination in the country. Through the Fight Night, Monnet Group looks at introducing a never before seen level of sportsmanship, class and high quality action which can inspire the youth in the state to take to Olympic sports like boxing which bring laurels to the nation. The concept offered the Indian boxers and the coaches an opportunity to test their skills ahead of the London Olympics against the widely feared Russians who are considered to be the best pound for pound fighters in the world. The series carries on from here to the next 2 destinations at New Delhi and Mumbai thereby giving our boxers ample opportunity to prepare for the London Olympics

 

Monnet Boxing Fight Night – 2012 was indeed a heady mix of Sports, Entertainment & Glamour providing a premium experience to everybody in attendance. It was formatted as a 90 minutes event with 5 exhibition boxing bouts of 3 rounds each and each round of 3 minutes. The winner was selected through a point system format as approved by AIBA, the world governing body for the sport.

 

Commenting on the occasion Mr. Sandeep Jajodia, Executive Vice Chairman & Managing Director, Monnet Ispat & Energy Limited said, “Monnet Boxing Fight Night is an effort at blending entertainment and real boxing to promote the sport amongst the youth in the country and make it the most loved sport. Monnet Group has been committed in benefiting the Indian Boxing team by associating as the official sponsor to the Indian Boxing federation and the Indian Boxing team in addition to ideating events like Monnet Boxing Fight Night to enhance the publicity and viewership

 

Also Monnet group is committed in developing boxing in the country and Chhattisgarh in particular, as the state has a huge talent pool of athletes. Through the Group’s CSR framework we have taken our commitment to the next level by establishing a Monnet Boxing Foundation (MBF). The MBF as a charter of its activities also plans to set up a world class Monnet Boxing Academy in the planned sports city at Raipur, Chhattisgarh to train amateur boxers from the grass roots level”

 

CMT REPORT (Corruption, Money Laundering & Terrorism]

 

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

 

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. 53.64

UK Pound

1

Rs. 86.42

Euro

1

Rs. 69.28

 

 

INFORMATION DETAILS

 

Report Prepared by :

ACH


 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

5

PAID-UP CAPITAL

1~10

6

OPERATING SCALE

1~10

7

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

8

--PROFITABILIRY

1~10

8

--LIQUIDITY

1~10

8

--LEVERAGE

1~10

7

--RESERVES

1~10

8

--CREDIT LINES

1~10

7

--MARGINS

-5~5

--

DEMERIT POINTS

 

 

--BANK CHARGES

YES/NO

Yes

--LITIGATION

YES/NO

No

--OTHER ADVERSE INFORMATION

YES/NO

No

MERIT POINTS

 

 

--SOLE DISTRIBUTORSHIP

YES/NO

No

--EXPORT ACTIVITIES

YES/NO

Yes

--AFFILIATION

YES/NO

Yes

--LISTED

YES/NO

Yes

--OTHER MERIT FACTORS

YES/NO

Yes

TOTAL

 

64

 

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

 

Financial condition (40%)         Ownership background (20%)                  Payment record (10%)

Credit history (10%)                 Market trend (10%)                                 Operational size (10%)

 

 

RATING EXPLANATIONS

 

 

RATING

STATUS

 

 

PROPOSED CREDIT LINE

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

 

Unlimited

71-85

Aa

Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums

 

Large

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

 

Fairly Large

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

 

Satisfactory

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

 

Small

11-25

Ca

Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity

 

Limited with full security

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

 

Credit not recommended

-

NB

                                       New Business

 

-

 

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.