MIRA INFORM REPORT
|
Report Date : |
30.04.2013 |
IDENTIFICATION DETAILS
|
Name : |
KIOCL LIMITED |
|
|
|
|
Formerly Known
As : |
KUDREMUKH IRON ORE COMPANY LIMITED |
|
|
|
|
Registered
Office : |
II Block, Koramangala, |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as
on) : |
31.03.2012 |
|
|
|
|
Date of
Incorporation : |
02.04.1976 |
|
|
|
|
Com. Reg. No.: |
08-002974 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs.6345.138
millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L13100KA1976PLC002974 |
|
|
|
|
Legal Form : |
A Public Limited Company |
|
|
|
|
Line of Business
: |
Subject is engaged
in the business of manufacturing and exporting high quality Iron Oxide
Pellets and supply of pig iron for domestic market. |
|
|
|
|
No. of Employees
: |
Approximately
1319 (Consisting of 854 workmen, 421 Executives and 44 Supervisors) |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (53) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD 82825000 |
|
|
|
|
Status : |
Good |
|
|
|
|
Payment Behaviour : |
Usually Correct |
|
|
|
|
Litigation : |
Exist |
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|
|
|
Comments : |
Subject is a Government of India Enterprise. It is a well established
company having a good track record. Financially the company appears to be strong.
Fundamental are healthy. Trade relations are reported to be decent. Business
is active. Payments are reported to be usually correct and as per
commitments. The company can be considered for normal business dealings at usual
trade terms and conditions. Note: Subject has been delisted from the BSE and NSE. |
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 – June 30, 2012
|
Country Name |
Previous Rating (31.03.2012) |
Current Rating (30.06.2012) |
|
|
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
RBI DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available RBI Defaulters’ list.
EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of
31-03-2012.
LOCATIONS
|
Registered/ Corporate Office : |
II Block, Koramangala, |
|
Tel. No.: |
91-80-25531461 to 25531470/ 25535937 to 25535940 |
|
Fax No.: |
91-80-25532153, 25535941, 25630984 |
|
E-Mail : |
bpurchase@kudreore.com |
|
Website : |
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|
|
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|
Plant Locations : |
Located at: ·
Kudremukh in Chickmagalur District, Karnataka, India
·
Mangalore in Dakshina Kannada District,
Karnataka, India |
|
|
|
|
Mangalore Office : |
New |
|
Tel. No.: |
91-824-2409681 to 2409689/ 6531681 to 6531683 |
|
Fax No.: |
91-824-2407422 |
|
E-Mail : |
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|
Himalaya House, 9th Floor, Kasturba Gandhi Marg, |
|
Tel. No.: |
91-11-23315665, 23315686 |
|
Fax No.: |
91-11-23721696 |
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E-Mail : |
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|
House No. HIG
-15, First Floor, BDA Colony, Pokhariput, |
|
Tel. No.: |
91-674-2352011 |
|
Fax No.: |
91-674-2352102 |
|
E-Mail : |
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|
No.25-12-39
(Ground Floor), Block No.8, Godeyvari Street, Opposite Old State Bank of |
|
Fax No.: |
91-891-2739530 |
|
E-Mail : |
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|
|
|
|
Kirandul Office : |
No.17, 11-C
Hostel, In BSNL Compound, PO Kirandul, Kirandul – 494 556, District
Dantewada, |
|
|
|
|
|
Door
No.16-23-3/A, Road No.3, Pallam Raju Nagar, |
|
Tel. No.: |
91-884-2346070 |
|
Fax No.: |
91-884-2346070 |
|
E-Mail : |
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|
Kudremukh Office : |
Kudremukh – 577
142, Chickmagalur District, |
|
Tel. No.: |
91-8263-254148 |
|
Fax No.: |
91-8263-254117 |
|
E-Mail : |
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|
Mangalore Office (Blast Furnace Unit) : |
Plot No.456 and
457, Baikampady Industrial Area, Panambur, Mangalore – 575 010, |
|
Tel. No.: |
91-824-2408916, 2408918, 2408955, 2409672 |
|
Fax No.: |
91-824-2409366, 2408944 |
|
E-Mail : |
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|
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|
Chennai Office : |
New No.11 (Old No.6), II Floor, |
|
Tel. No.: |
91-44-28586738 |
|
Fax No.: |
91-44-28520450 |
|
E-Mail : |
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|
|
|
|
Chikkanayakanahalli Office : |
Adjacent to |
|
Tel. No.: |
91-8133-268331 |
|
Fax No.: |
91-8133-268331 |
|
E-Mail : |
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|
Hospet Office : |
Srisaila,
No.179/A, Ward No.3, 1st Main, 3rd Cross, College Road,
Basaveswara Badavane, Hospet – 583 201, Karnataka, India |
|
|
|
|
Donimalai Office : |
Type-II, Quarter
No.120, South Block, |
|
|
|
|
Hubli Office : |
Flat No.102, Pacific Shelter, Vivekananda Colony, Keshavapur, Hubli –
580 026, |
DIRECTORS
|
FUNCTIONAL DIRECTORS |
|
|
Name : |
Mr. Malay Chatterjee |
|
Designation : |
Chairman-cum-Managing Director (From 01.07.2012) |
|
|
|
|
Name : |
Mr. K. Subba Rao |
|
Designation : |
Director (Production and Projects) (From
09.06.2011) |
|
|
|
|
Name : |
Mr. K. Laxminarayana |
|
Designation : |
Director (Finance) |
|
Date of Birth/Age : |
02.05.1956 |
|
Qualification : |
B. Com, ACA |
|
Nature of
expertise : |
Finance and Accounts |
|
Date of Appointment : |
01.09.2011 |
|
|
|
|
Name : |
Mr. M.V. Subba Rao |
|
Designation : |
Director (Commercial) |
|
|
|
|
NON FUNCTIONAL DIRECTORS |
|
|
Name : |
Mr. E.K. Bharat Bhushan |
|
Designation : |
Government Nominee Director (w.e.f. 26.07.2012) |
|
|
|
|
Name : |
Mr. Lokesh Chandra |
|
Designation : |
Government Nominee Director |
|
|
|
|
Name : |
Mr. K. Narasimha Murthy |
|
Designation : |
Director |
|
Date of Birth/Age : |
11.07.1957 |
|
Qualification : |
B Sc, FCA, FICWA |
|
Nature of
expertise : |
Practicing Cost and Management Consultants. His area of expertise
include Cost Audit, Cost Reduction Programs, Management Information and Control
Systems Development, Critical Analysis of Performance, SWOT Analysis,
Management Audit, Business Valuations, Corporate Planning, Strategic
Planning, Organization Analysis and Structure, Mergers and Acquisitions,
Internal Audit, Concurrent Audit, Pre-Audit, Manpower Planning and
Development, Designing Production Incentive Schemes, Revival of Sick Units
and other Management Support Services. |
|
Date of Appointment : |
02.08.2011 |
|
Directorships
held in other Companies : |
v
LIC Housing Finance Limited v
Max Healthcare Institute Limited v
Max India Limited v
v
Srikari Management Consultants Private Limited v
NABARD |
|
|
|
|
Name : |
Mr. Vinai Kumar Agarwal |
|
Designation : |
Director |
|
Date of Birth/Age : |
30.10.1950 |
|
Qualification : |
B. Sc, BE (Civil), IIT Roorkee |
|
Nature of
expertise : |
Consultancy and Project Management in all sectors of Infrastructure.
Constructing and maintenance of rail network, Building and Bridges in |
|
Date of Appointment : |
02.08.2011 |
|
Directorships
held in other Companies : |
Dredging Corporation India Limited |
KEY EXECUTIVES
|
Name : |
Mr. S.K. Padhi |
|
Designation : |
Company Secretary |
|
|
|
|
Name : |
Mr. S. Galgali |
|
Designation : |
Chief Vigilance Officer |
|
|
|
|
Name : |
Mr. T.N.T Ganga Rao |
|
Designation : |
General Manager (Business Development) |
|
|
|
|
Name : |
Mr. V. Bobraj Jeyaharan |
|
Designation : |
General Manager (Materials) |
|
|
|
|
Name : |
Mr. S. Rajendra |
|
Designation : |
General Manager (Personnel) |
|
|
|
|
Name : |
Mr. N. Vidyananda |
|
Designation : |
General Manager (Production) |
|
|
|
|
Name : |
Mr. M.S.N. Murthy |
|
Designation : |
General Manager (Finance) |
|
|
|
|
Name : |
|
|
Designation : |
General Manager (CP and T) |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 31.03.2012
|
Category of Shareholders |
No. of Shares |
Percentage of
Holding |
|
Central Government/State Government(s) |
628144130 |
98.9961 |
|
Mutual Funds/UTI |
1985000 |
0.3128 |
|
Financial Institutions/Banks |
800000 |
0.1260 |
|
Insurance Companies |
2778300 |
0.4379 |
|
Bodies Corporate |
19277 |
0.0031 |
|
Resident Indians & others |
787093 |
0.1241 |
|
Total |
634513800 |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Subject is engaged
in the business of manufacturing and exporting high quality Iron Oxide
Pellets and supply of pig iron for domestic market. |
||||||||||||
|
|
|
||||||||||||
|
Products : |
|
PRODUCTION STATUS (AS ON 31.03.2011)
|
Particulars |
Iron ore
Concentrate |
Iron ore Pellets |
Pig Iron |
|
Qty (Million Ton) |
Qty (Million Ton) |
Qty (Million Ton) |
|
|
Licenced Capacity |
Licence not required |
4.000 |
Licence not required |
|
Installed Capacity |
7.500 |
3.500 |
0.216 |
|
Actual Production |
Nil |
2.124 |
- |
Notes:
1) Pellets include
Pellet-fines also.
2) Pig Iron includes Auxiliary.
GENERAL INFORMATION
|
No. of Employees : |
Approximately
1319 (Consisting of 854 workmen, 421 Executives and 44 Supervisors) |
|
|
|
|
Bankers : |
State Bank of |
|
|
|
|
Banking Relations
: |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
SRRK Sharma Associates Chartered Accountants |
|
Address : |
Dheeyash, No.41/1, III Cross, Kumara Park West, |
CAPITAL STRUCTURE
As on 31.03.2012
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
675000000 |
Equity Shares |
Rs.10/- each |
Rs.6750.000 millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital* :
|
No. of Shares |
Type |
Value |
Amount |
|
628144030 |
Equity Shares (Government of |
Rs.10/- each |
Rs.6281.440
millions |
|
6369770 |
Equity Shares (Others) |
Rs.10/- each |
Rs.63.698
millions |
|
|
Total |
|
Rs.6345.138 millions |
|
|
|
|
|
* Government of
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
6345.138 |
6345.138 |
6345.138 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
14361.073 |
13640.029 |
13062.283 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
20706.211 |
19985.167 |
19407.421 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
0.000 |
0.000 |
0.000 |
|
|
2] Unsecured Loans |
0.000 |
0.000 |
0.000 |
|
|
TOTAL BORROWING |
0.000 |
0.000 |
0.000 |
|
|
DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
20706.211 |
19985.167 |
19407.421 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
3584.813 |
3147.818 |
3222.468 |
|
|
Capital work-in-progress |
240.240 |
610.287 |
190.858 |
|
|
Other non-current assets |
101.144 |
83.748 |
0.000 |
|
|
|
|
|
|
|
|
INVESTMENT |
0.000 |
0.000 |
0.000 |
|
|
DEFERRED TAX ASSETS |
163.223 |
145.128 |
150.405 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
2204.519
|
2358.532 |
2248.503 |
|
|
Sundry Debtors |
852.135
|
792.366 |
366.054 |
|
|
Cash & Bank Balances |
14645.419
|
14438.299 |
13934.839 |
|
|
Other Current Assets |
524.411
|
604.893 |
0.000 |
|
|
Loans & Advances |
1322.593
|
751.755 |
1501.410 |
|
Total
Current Assets |
19549.077
|
18945.845 |
18050.806 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
1271.363
|
1530.234 |
1332.714 |
|
|
Other Current Liabilities |
174.208
|
123.414 |
119.116 |
|
|
Provisions |
1486.715
|
1294.011 |
883.618 |
|
Total
Current Liabilities |
2932.286
|
2947.659 |
2335.448 |
|
|
Net Current Assets |
16616.791
|
15998.186 |
15715.358 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
128.332 |
|
|
|
|
|
|
|
|
TOTAL |
20706.211 |
19985.167 |
19407.421 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
|
|
SALES |
|
|
|
|
|
|
|
Revenue from operations |
13892.908 |
16765.579 |
9204.844 |
|
|
|
Other Income |
1713.312 |
1177.863 |
1033.786 |
|
|
|
TOTAL (A) |
15606.220 |
17943.442 |
10238.630 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of materials consumed |
9277.534 |
|
11693.227 |
|
|
|
Changes in inventories
of finished goods, work-in-progress and stock-in-Trade |
21.522 |
94.964 |
|
|
|
|
Employee
benefits expense |
1424.572 |
1276.503 |
|
|
|
|
Other expenses |
3319.634 |
4596.541 |
|
|
|
|
TOTAL (B) |
14043.262 |
16573.271 |
11693.227 |
|
|
|
|
|
|
|
|
Less |
PROFIT/
(LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
1562.958 |
1370.171 |
(1454.597) |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
1562.958 |
1370.171 |
(1454.597) |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
409.016 |
370.661 |
494.905 |
|
|
|
|
|
|
|
|
|
|
PROFIT/ (LOSS)
BEFORE TAX (E-F) (G) |
1153.942 |
999.510 |
(1949.502) |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
210.929 |
236.788 |
(176.830) |
|
|
|
|
|
|
|
|
|
|
PROFIT/ (LOSS)
AFTER TAX (G-H) (I) |
943.013 |
762.722 |
(1772.672) |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Interim Dividend |
NA |
50.761 |
0.000 |
|
|
|
Tax on Interim Dividend |
NA |
8.500 |
0.000 |
|
|
|
Proposed Dividend |
NA |
107.867 |
0.000 |
|
|
|
Tax on Proposed Dividend |
NA |
17.846 |
0.000 |
|
|
|
Transfer to General Reserve |
NA |
577.748 |
(1772.672) |
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export of goods (FOB) |
4961.528 |
6945.490 |
2142.603 |
|
|
|
Other receipts |
0.743 |
3.936 |
0.123 |
|
|
TOTAL EARNINGS |
4962.271 |
6949.426 |
2142.726 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Components and spare parts |
211.053 |
72.293 |
53.489 |
|
|
|
Furnace oil |
1557.879 |
1408.279 |
776.098 |
|
|
|
Consumables and additives |
90.033 |
76.572 |
6.478 |
|
|
|
Capital goods |
546.174 |
37.200 |
0.000 |
|
|
TOTAL IMPORTS |
2405.139 |
1594.344 |
836.065 |
|
|
|
|
|
|
|
|
|
|
Earnings/ (Loss)
Per Share (Rs.) |
1.49 |
1.20 |
(2.79) |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
PAT / Total Income |
(%) |
6.04
|
4.25 |
(17.31) |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
8.31
|
5.96 |
(21.18) |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
4.99
|
4.52 |
(9.16) |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.06
|
0.05 |
(0.10) |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
0.00
|
0.00 |
0.00 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
6.67
|
6.43 |
7.73 |
LOCAL AGENCY FURTHER INFORMATION
|
Check
List by Info Agents |
Available
in Report (Yes / No) |
|
1) Year of Establishment |
Yes |
|
2) Locality of the firm |
Yes |
|
3) Constitutions of the firm |
Yes |
|
4) Premises details |
No |
|
5) Type of Business |
Yes |
|
6) Line of Business |
Yes |
|
7) Promoter’s background |
Yes |
|
8) No. of employees |
Yes |
|
9) Name of person contacted |
No |
|
10) Designation of contact person |
No |
|
11) Turnover of firm for last three years |
Yes |
|
12) Profitability for last three years |
Yes |
|
13) Reasons for variation <> 20% |
-- |
|
14) Estimation for coming financial year |
No |
|
15) Capital in the business |
Yes |
|
16) Details of sister concerns |
No |
|
17) Major suppliers |
No |
|
18) Major customers |
No |
|
19) Payments terms |
No |
|
20) Export / Import details (if
applicable) |
No |
|
21) Market information |
-- |
|
22) Litigations that the firm / promoter
involved in |
Yes |
|
23) Banking Details |
Yes |
|
24) Banking facility details |
No |
|
25) Conduct of the banking account |
-- |
|
26) Buyer visit details |
-- |
|
27) Financials, if provided |
Yes |
|
28) Incorporation details, if applicable |
Yes |
|
29) Last accounts filed at ROC |
Yes |
|
30) Major Shareholders, if available |
No |
|
31)
Date of Birth of Proprietor/Partner/Director, if available |
Yes |
|
32)
PAN of Proprietor/Partner/Director, if available |
No |
|
33)
Voter ID No of Proprietor/Partner/Director, if available |
No |
|
34)
External Agency Rating, if available |
No |
LITIGATION DETAIL:
|
High Court of Karnataka - Principal Bench at Bangalore |
|
MISC.CVL 9274/2011 |
CASE PENDING
|
|
|
Petitioner/Appnt.
Name |
UNITED PRECISION ENGINEERS |
|
Respondent/Defnt.
Name |
KIOCL LIMITED |
|
Petnr./Appnt.
Advocate |
C R SUBRAMANYA |
|
Respnt./Defnt.
Advocate |
|
|
Date Filed |
19.04.2011 |
|
District |
Bangalore City |
|
Stage |
PENDING FOR ADMISSION Last Posted for |
|
Last Action
Taken |
Last
Date of Action Next
hearing date |
|
Before Hon'ble
Judge/s |
|
Lower Court Details [Appeal from below case.]
|
Case No |
Court name |
Disposal Dt |
|
RFA 763/2011 |
HC BANGALORE |
|
YEAR'S HIGHLIGHTS AT A GLANCE
v Company achieved a
Pellet production of 2.93 lakh tons during the month of October 2011, which is the
record production for any month after switching over to use of
v Company also
achieved a record Pellet despatch of 3.27 lakh tons which is also a record
during the month of July 2011.
v The Company could
record a growth of 15% in profit before tax during 2011-12 despite dip in
production and despatches.
v Apart from
investing Rs.515.200 millions in Capital project, the Fixed deposit of the
Company with various banks stood at Rs.14544.200 millions as on 31.03.2012
representing an increase by Rs.198.100 millions over the same date in the
previous year.
v Subject remains a
debt free Company.
v In provisional MOU
rating for 2011-12, the Company has achieved ‘Very Good’ rating.
v Three numbers of
Horizontal Pressure Filters alongwith auxiliaries have been successfully
commissioned on schedule at the Pellet Plant.
v MOU was signed
between subject and Kerala State Industrial Development Corporation Limited for
v There is a need to
focus on enlarging ore supply basket around the world for augmenting raw
material source through a process of acquiring mineral assets abroad. With this
objective in mind, an MOU was signed on 05.03.2012 with CURVE Capital Ventures,
a
v It is imperative
to explore alternative source of water supply to their Mangalore plants in view
of pending IA-1458 before Hon’ble Supreme Court. Matter was taken up with
Mangalore City Corporation (MCC). It has resolved to supply water to subject
units at Panambur as per the bye laws adopted by the Corporation. Further
action is in progress.
v To ensure
uninterrupted movement of Iron Ore Fines from Bacheli and Kirandul, a second
Port at
PHYSICAL AND FINANCIAL HIGHLIGHTS
During the year 2011-12, the important physical and financial highlights
are as under:
Physical Highlights
(Qty.
in million tonnes)
|
Particulars |
2011-12 |
2010-11 |
Percentage
Change (Actual) |
||
|
MOU Target
(Good) |
Actual
Achievement |
MOU Target
(Good) |
Actual
Achievement |
||
|
Production Pellets
including Pellet Fines |
3.000 |
1.710 |
2.780 |
2.124 |
(-)19% |
|
Pig Iron and
Auxiliary Materials |
- |
- |
0.100 |
- |
- |
|
Sales Pellets including Pellet Fines |
3.000 |
1.716 |
2.780 |
2.090 |
(-)18% |
|
Pig Iron and
Auxiliary Materials |
- |
0.010 |
0.100 |
0.020 |
(-)50% |
Financial Highlights
(Rs. in millions)
|
Particulars |
2011-12 |
2010-11 |
|
Turnover |
15210.800 |
18034.600 |
|
Profit /(Loss) Before Tax |
1153.900 |
999.500 |
|
Profit /(Loss) After Tax |
943.000 |
762.700 |
SEGMENT-WISE PERFORMANCE
Pellets
MOU target was 3
million tonnes of Pellet production under ‘Good’ category. Against this actual
production during 2011-12 was 1.710 million tonnes which is 57% of the target.
Hon’ble Supreme
Court of India on the advice of Central Empowered Committee:
a. Banned the
mining activities of
b. Suspended the
operation of long term agreement for sale of Iron Fines and directed that the
c. Banned trading
of Iron Ore Fines.
This resulted in
NMDC and other private supplier invoking “Force Majeure” clause, to suspend
Pig Iron and Auxiliary
Owing to
generation of ‘Negative Contribution’, operation of Blast Furnace Unit (BFU) is
suspended since 05-08-2009. The situation remains the same in 2011-12.
Accordingly no
target was set for Pig Iron production.
To make the unit
viable, subject Board has approved:-
a. Setting up of 3
lakh ton capacity Coke Oven Battery along with 25 Mw capacity Captive Power
Plant as backward integration and
b. Identification
of joint venture partner for setting up of Ductile Spun Pipe Plant as forward
integration.
The Company has initiated action for the same.
Market Scenario:
During the year
2011, World Iron
World Steel
consumption is expected to grow by 4% - 6% during 2012 mainly due to expected
increase in demand for creating infrastructural facilities in the emerging
markets. Even though the growth projections are low, it is expected to increase
demand stimulating additional production of
Uncertainties
associated with raw material supply in the World market are likely to continue
in 2012. Existing supply sources face export restrictions in major exporting
Countries. Abnormal weather conditions in countries like
The domestic Steel
consumption is expected to grow by about 8%. However, the prices are likely to
fluctuate due to delay in obtaining mining lease renewals and ban on
PROJECT EXPANSION AND BUSINESS DIVERSIFICATION
Ductile Iron Spun
Pipe Project
The Company has proposed
to set up Ductile Iron Spun Pipe Project (DISP) Plant, under forward
Integration in Blast Furnace Unit complex. ICRA Management Consulting Services
Limited has updated the Market Assessment study report of the Ductile Pipes in
As decided by
subject Board, work order was placed on MECON for the preparation of Detailed
Project Report (DPR) for DISP project as forward integration to Blast Furnace
Unit. MECON has submitted the final DPR. During the 206th meeting of the Board,
the DPR has been approved and advised subject to identify a partner for setting
up of 1,00,000 TPA DISP plant at an estimated cost of Rs.3086.120 millions at
BFU Mangalore. On identifying the partner, a Special Purpose Vehicle (SPV) has
to be created for implementation of DISP project. Action has been initiated for
fixing up a consultant for identification of a partner through an open tender
enquiry for setting up of 1,00,000 TPA capacity DISP Plant.
Procurement and
installation of Horizontal Pressure Filters
Three Numbers of
Pressure Filters along with Auxiliary equipments were received and Pressure
Filters are commissioned on 28-09-2011. The Pressure Filters are in operation.
With the
installation of above filters, the Filter plant capacity is adequate to produce
3.5 million tonnes of Pellets per annum. Hence, the requirement of further
installation of Horizontal Pressure Filters is not considered at this stage.
Bulk Material
Handling and Railway Siding Facilities:
The Company has
purchased a total of 56.05 acres of land from Karnataka Industrial Area
Development Board (KIADB) and
Konkan Railway
Corporation Limited has submitted the revised track alignment route avoiding
the Diamond Crossing for safety reasons. The revised alignments necessitated
swapping of a small area of land from KIADB and also purchase of a few acres of
land from the private land owners. Matter has been taken up with KIADB and
private land owners based on the requirement of additional land. 3.19 acres of
land has already been purchased and efforts are on to purchase the balance
quantity of 2.04 acres also.
Construction of
Storage Silos with handling facilities
As approved by the
Board, the augmentation of the Iron Ore feeding system for uninterrupted supply
of
Non-Recovery Coke
Oven Plant with 25 MW CPP at Mangalore:
In order to make
the Blast Furnace Unit (BFU) economically viable on standalone basis, it is
proposed to set-up a Coke Oven Battery with Captive Power plant as backward
integration project. The total investment for this project is estimated at
Rs.4522.200 millions for setting up of 3 lakh tonnes per annum non recovery
type Coke Oven Plant with 25 MW Captive Power plant by utilizing the hot flue
gases from the Coke ovens. The total area earmarked for the project is 48 acres
available, within the Blast Furnace unit.
The Board of
Directors at their 201st meeting held on 25.03.2011 has approved the proposal
with a debt equity ratio of 1:2.
The Company has
submitted the necessary forms and feasibility report to Ministry of Environment
and Forest (MoEF),
The Company has
already finalized an agency for the detailed engineering services (consultancy
part) for the project. Subsequent to finalization of tender terms, proposal has
been put up for approval to float the tender for Coke Oven batteries along with
Coal and Coke handling system.
Eco-Tourism at
Kudremukh
While exploring alternate
measures to utilize its assets and infrastructural facilities available at
Kudremukh, subject approached Government of Karnataka with a plan of developing
eco-tourism and sought for renewal of revenue land lease (1220 ha). Government
of Karnataka agreed in principle to accord permission for change of purpose
from mining to eco tourism and advised subject to prepare Detailed Project
Report (DPR) and also to work jointly with Jungle Lodges and Resorts Limited
(JLR) (A Government of Karnataka Undertaking) for the project.
DPR has been
prepared for the project. Subject also submitted the draft MoU to JLR for their
consent and participation in the project. Subject also provided Executive
Summary of master plan and business plan to JLR for reference. However, vide
their letter no: JLR: 2012-13/96 dated 20 April 2012, JLR have informed that
they are not interested in proposed Creation of Eco-Tourism facilities at
Kudremukh. In view of the above, with necessary approvals from the concerned,
subject shall pursue the eco-tourism project on stand-alone basis.
Removal of Secondary Weathered Ore in already
broken up area at Kudremukh Iron Ore Mine, Kudremukh
Government of
Under Ground
Mining Technology for Mining in western gat area
Indian Council for
Forestry Research and Education (ICFRE) while submitting a report w.r.t.
illegal mining activities in the State of Karnataka to Central Empowered
Committee (CEC) as per the directive of Hon’ble Supreme Court, suggested for
exploring the possibility of adopting Underground Mining Technology for mining
in Western Ghat area.
Removal of Lakya
Dam Tailings
A Detailed Project
Report on desilting of Lakya Dam for safety and environmental reasons and
commercial utilization of the tailings has already been prepared by subject and
submitted to Ministry of Steel. Company has requested Government of Karnataka
to accord permission for removal of tailings deposited in the Lakya Dam.
MOU with
Government of Kerala
A MoU was signed
between subject and Kerala State Industrial Development Corporation Limited
(KSIDC) for
The first joint
meeting of Steering Committee was held at Thiruvananthapuram. In the said
meeting it was concluded that KSIDC shall approach Director, Mines and Geology,
Government of Kerala to identify the free hold Iron Ore deposits in the District
of Kozhikode for grant of PL/Mining Lease and thereafter to take up jointly the
exploration and development of Iron Ore deposit for mining and setting up of
beneficiation, Pelletisation plant. However, KSIDC confirmed that the land at
Alampara falls under forest and the free lands containing
Strategic Partnership with CURVE CAPITAL VENTURES
LIMITED (CURVE CAP) for Iron Ore mining in Mauritania, West Africa
Subject is
consistently putting efforts to explore the opportunities of acquiring the Iron
Ore and other mineral assets overseas. One such opportunity came across was the
bid floated by Curve cap in the month of August 2011 for a strategic partner to
further explore, develop and mining of Iron Ore in Prospecting License area
under PL no. 1178 granted to Curve Cap by Islamic Republic of Mauritania,
Africa covering an area of 983 sq km located near Akjoujt town. In response to
the bid, subject submitted its bid on 31 August 2011. Subject was selected as
the preferred bidder and further as strategic partner for the development and
operation of Akjoujt Iron
In accordance with
the approval of the subject Board, MoU was signed between subject and Curve Cap
on 5th March 2012, to take the proposal forward.
Further as
directed by the Board, action has been initiated to carry out the due diligence
on Technical, Financial and Legal aspect of the proposed mining site and of
Curve Cap. The same shall have the coverage of 3600 and shall be completed before
entering into any formal agreement with financial commitments.
AWARD AND
RECOGNITION
Company was
conferred with Rajbhasha Shield by Town Official Language Implementation
Committee (Undertaking),
MANAGEMENT DISCUSSION AND ANALYSIS
INDUSTRY STRUCTURE
AND DEVELOPMENT
The Company
operates in the international
The Global
recession which has a severe impact on the performance of the Company during
the year 2009-10 has improved during 2010-11. The price of Pellets has shown
signs of improvement from January 2010 onwards and has prompted the Company to
increase production during 2010-11. The issue raised by Railways regarding
applicability of Levy of Distance based charges over and above normal freight
on
OUTLOOK
The Company has a
large Equity base with no long term Debt to service. This is a source of
strength to the Company. In order to fruitfully deploy its financial and
technical strength for the future growth of the Company, the Company is
exploring the possibilities of entering into new areas of business, acquiring
new mining leases and formulation of diversification schemes for
implementation.
The Company has
proposed to set up DISP Plant, Coke Oven Battery, Power Plant and Oxygen Plant
etc., under forward and backward Integration in Blast Furnace Unit. ICRA
Management Consulting Services Limited has updated the Market Assessment study
report of the Ductile Pipes in
As decided by
subject Board, work order was placed on MECON for the preparation of DPR for
DISP project as forward integration to BFU. MECON has submitted the final DPR.
During the 206th meeting of the Board, the DPR has been approved and advised
subject to identify a partner for setting up of 1,00,000 TPA DISP plant at an
estimated cost of Rs.3086.120 millions at BFU Mangalore. On identifying the
partner, a Special Purpose Vehicle (SPV) has to be created for implementation
of DISP project. Action has been initiated for fixing up a consultant for
identification of a partner through an open tender enquiry for setting up of
1,00,000 TPA capacity DISP Plant.
In order to make
the Blast Furnace unit economically viable on stand alone basis the Company
proposes to take up implementation of a 0.3 million tonne per annum Coke Oven
Battery with Captive Power plant as backward integration project. The total
investment for this project is estimated at Rs.4522.200 millions for setting up
of 3 lakh tonnes per annum non recovery type Coke Oven plant and a 25 MW
capacity Power plant by utilizing the hot flue gases from the Coke Ovens.
Government of
Karnataka had granted mining lease over an area of 116.55 ha in Hombalghatta
and Hosahalli villages in favour of subject. The Company has submitted many
applications for grant of Mining lease in Ramanadurga and other areas in the
districts of
CONTINGENT
LIABILITIES NOT PROVIDED FOR:
|
Particulars |
31.03.2012 (Rs. in
millions) |
31.03.2011 (Rs. in
millions) |
|
(a) In respect of
- Letters of Credit and Bank Guarantees etc., outstanding |
|
|
|
(i) On Revenue Account |
654.514 |
297.983 |
|
(ii) On Capital Account |
0.000 |
723.087 |
|
(b) Claims
against the Company not acknowledged as debts |
|
|
|
(i) On Revenue Account * |
1123.722 |
1105.197 |
|
(ii) On Capital Account |
1615.999 |
1684.545 |
|
(* includes
Rs.1105.762 millions towards Forest Development Tax at the rate of 12% of
basic price of iron ore. NMDC Limited has filed a writ petition in the Hon’ble
High Court of Karnataka challenging the levy of the same. The case is pending
for disposal. Meanwhile, as per the interim order of the |
|
|
|
(c) Disputed Liabilities in Appeal |
|
|
|
(i) On Revenue Account |
|
|
|
VAT |
6.508 |
6.508 |
|
Excise Duty |
292.448 |
37.128 |
|
Income Tax |
455.752 |
455.752 |
|
Service Tax |
40.598 |
0.000 |
UNAUDITED FINANCIAL
RESULTS FOR THE QUARTER AND NINE MONTHS ENDED ON 31ST DECEMBER 2012
(Rs. in millions)
|
|
|
Quarter
Ended |
|
Nine Month
Ended |
|
|
|
3 Months
ended |
Preceding 3
Months ended |
Year to
date figures for current period ended |
|
|
|
31.12.2012 |
30.09.2012 |
31.12.2012 |
|
|
Particulars |
(Unaudited) |
(Unaudited) |
(Unaudited) |
|
1 |
Income from Operations |
|
|
|
|
|
(a) Net
Sales / Income from Operations |
3642.600 |
1405.600 |
8327.100 |
|
|
(b) Other
Operating Income |
175.700 |
61.500 |
263.500 |
|
|
Total income from operations (net) |
3818.300 |
1467.100 |
8590.600 |
|
2 |
Expenses: |
|
|
|
|
|
(a) Cost of
materials consumed |
2079.500 |
1242.000 |
6150.600 |
|
|
(b)
Purchase of stock-in-trade |
- |
- |
- |
|
|
(c) Changes
in inventories of finished goods, work-in-progress and stock-in-trade |
937.100 |
(367.200) |
(233.900) |
|
|
(d)
Employees benefits expense |
346.600 |
340.800 |
1036.000 |
|
|
(e)
Depreciation & DRE |
85.800 |
85.700 |
257.300 |
|
|
(f) Others |
801.600 |
556.400 |
2332.000 |
|
|
Total expenses |
4250.600 |
1857.700 |
9542.000 |
|
3 |
Profit/(Loss)
from operations before other income, finance costs and |
(432.300) |
(390.600) |
(951.400) |
|
|
exceptional
items (1-2) |
|
|
|
|
4 |
Other
Income |
330.100 |
407.600 |
1051.800 |
|
5 |
Profit/(Loss)
from ordinary activities before finance costs and exceptional items (3+4) |
(102.200) |
17.000 |
100.400 |
|
6 |
Finance
costs |
- |
- |
- |
|
7 |
Profit/(Loss)
from ordinary activities after finance costs and before exceptional items
(5-6) |
(102.200) |
17.000 |
100.400 |
|
8 |
Exceptional
Items |
- |
- |
- |
|
9 |
Profit(+)/Loss(-)
from Ordinary Activities before tax (7+/-8) |
(102.200) |
17.000 |
100.400 |
|
10 Tax expenses |
(34.000) |
5.600 |
31.500 |
|
|
11 |
Net Profit
(+)/Loss (-) from Ordinary Activities after tax (9-10) |
(68.200) |
11.400 |
68.900 |
|
12 |
Extraordinary
Items (net of tax expenses) |
- |
- |
- |
|
13 |
Net Proft(+)/
Loss (-) for the peirod (11 -12) |
(68.200) |
11.400 |
68.900 |
|
14 |
Share of
profit/(Loss) of associates |
NA |
NA |
NA |
|
15 |
Minority
Interest |
NA |
NA |
NA |
|
16 |
Net Profit/(Loss)
after taxes, minority interest and share of profit/(Loss) of associates
(13±14±15) |
(68.200) |
11.400 |
68.900 |
|
17 |
Paid-up
equity share capital (Face value of the share Rs.10 each ) |
6345.100 |
6345.100 |
6345.100 |
|
18 |
Reserves excluding
Revaluation Reserves as per Balance sheet of previous accounting year |
- |
- |
- |
|
|
|
|
|
|
|
19 |
(i) Earning
Per Share (before extraordinary items) (of Rs.10 each) |
|
|
|
|
|
(a) Basic and
diluted EPS before Extraordinary items for the period, for the year to date
and for the previous year |
(0.11) |
0.02 |
0.11 |
|
|
|
|
|
|
|
1? |
(ii)
Earning Per Share (before extraordinary items) (of Rs.10 each) |
|
|
|
|
|
(a) Basic and
diluted EPS after Extraordinary items for the period, for the year to date
and for the previous year |
(0.11) |
0.02 |
0.11 |
|
A |
Particulars
of Shareholding |
|
|
|
|
1. |
Public
shareholding |
|
|
|
|
|
- Number of
shares |
6369670 |
6369670 |
6369670 |
|
|
-
Percentage of shareholding |
1.0039% |
1.0039% |
1.0039% |
|
~2. |
Promoters
and Promoter Group shareholding |
|
|
|
|
|
(a) Pledged
/ Encumbered |
|
|
|
|
|
- Number of
shares |
- |
- |
- |
|
|
- Percentage
of shares (as a % of the total shareholding of promoter and promoter group) |
- |
- |
- |
|
|
-
Percentage of shares (as a % of the total share capital of the company) |
- |
- |
- |
|
|
(b)
Non-encumbered |
|
|
|
|
|
- Number of
shares |
628144130 |
528144130 |
628144130 |
|
|
-
Percentage of shares (as a % of the total shareholding of promoter and
promoter group) |
100% |
100% |
100% |
|
|
-
Percentage of shares (as a % of the total share capital of the company) |
98.9961% |
98.9961% |
98.9961% |
|
|
Particulars |
3 months ended 31.12.2012 |
|
B |
Investor's
Complaints |
|
|
|
Pending at
the beginning of the quarter |
NIL |
|
|
Received
during the quarter |
NIL |
|
|
Disposed
off during the quarter |
NIL |
|
|
Remaining unresolved
at the end of the year |
NIL |
(Rs. in millions)
|
|
Particulars |
Quarter Ended |
Nine Month Ended |
|
|
|
3 Months ended |
Preceding 3 Months ended |
Year to date figures for current period ended |
|
|
|
31.12.2012 |
30.09.2012 |
31.12.2012 |
|
|
|
(Unaudited) |
(Unaudited) |
(Unaudited) |
|
|
1 |
Segment Revenue |
|
|
|
|
|
a) Pellet
Plant |
3640.500 |
1398.200 |
8281.800 |
|
|
b) Pig Iron
Plant |
2.100 |
7.400 |
45.300 |
|
|
c) Total |
3642.600 |
1405.600 |
8327.100 |
|
|
Less: Inter
segment revenue |
- |
- |
- |
|
|
Net Sales/Income from Operation |
3642.600 |
1405.600 |
8327.100 |
|
2 |
Segment Results |
|
|
|
|
|
a) Pellet
Plant |
(336.500) |
(292.500) |
(690.200) |
|
|
b) Pig Iron
Plant |
(95.800) |
(98.100) |
(261.200) |
|
|
c) Unallocable
Income |
330.100 |
407.600 |
1051.800 |
|
|
Profit
before Tax |
(102.200) |
17.000 |
100.400 |
|
3 |
Capital employed |
|
|
|
|
|
(Segment Assets - Segment
Liabilities) |
|
|
|
|
|
a) Pellet
Plant |
3455.300 |
4745.100 |
3455.300 |
|
|
b) Pig Iron
Plant |
1464.100 |
1536.700 |
1464.100 |
|
|
c)
Unallocable Corporate Assets less Liabilities |
15855.700 |
14561.500 |
15855.700 |
|
|
Total |
20775.100 |
20843.300 |
20775.100 |
Notes:
1. The above results have been reviewed by the Audit
Committee and approved in the meeting of the Board of Directors held on
11.02.2013.
2. The Statutory Auditors have carried out a limited
review of the financial results for the quarter ended on December 31, 2012.
3. Stock of raw materials, stores and spares, consumables
and additives are valued at weighted average cost. Where there has been decline
in the price of materials and it is estimated that the cost of the finished
products will exceed the realisable value, the materials are written down to
net realisable value as per Accounting Standard (AS)-2 and reviewed at each
Balance Sheet date.
4. Cost of Power, Furnace Oil and Additives are included
in "Others".
5. The previous periods figures have been regrouped / rearranged wherever necessary.
FIXED ASSETS:
Tangible Assets
v
Land – Freehold
v
Land – Leasehold
v
Buildings
v
Plant and Equipment
v
Furniture and Fixtures
v
Vehicles
v Office Equipment
v
Roads, Bridges and Culverts
v
Dams, Embankments etc.
v
Temporary Structures
v
Railway Siding
v
Water supply, Sewerage and Fire prevention System
v
Electrical Installation
Intangible Assets
v
Process development Expenditure
WEBSITE DETAILS:
HISTORY
Incorporated on April 2, 1976, the subject, a Government of India
enterprise, was Asia's largest iron ore mining and pelletisation complex and
the country's biggest 100% export oriented unit engaged in the business of
exporting high quality iron oxide pellets and pig iron. Headquartered at
The idea of beneficiating the ore deposits was first proposed when several
Japanese companies came together with the National Mineral Development
Corporation (NMDC), a Government of India undertaking, evincing an interest in
such a project. Pilot studies suggested that the surface ore with 38% iron
could be enriched to a concentrate of 67% iron with available new technologies.
The concentrate could be transported to Mangalore, on the coast of the
The company was formed in April 1976. The 7.5 million ton annual capacity project
at Kudremukh along with the 110 km slurry pipeline and filtration units at
Mangalore was to be completed in August 1980. Shipments were to commence in
September 1980. Subject Completed the project in time without cost or time
overrun.
The Company added to its fleet a new unit of Pig Iron complex known as subject
located at the Bykampady Industrial area in Mangalore by merger with it w.e.f.
01.04.2007. The merged unit, named as Blast Furnace Unit (BFU) possesses a
Blast Furnace of 350 cu. mtrs to produce 2,30,000 tonnes per annum of high
grade pig iron of low phosphorous and low sulphur content. Both Pelletisation
Complex and Blast Furnace Unit have their own captive power plants to meet
their energy requirement. The public sector Company, under the Ministry of
Steel, has a good track record of commitment to quality, customer satisfaction
and environment management system that propelled it to achieve ISO 9001:2000,
ISO 1401:1996 and OHSAS 18001:1999.
Mining activities at the worksite at Kudremukh, 110 Kms from Mangalore came to
halt from the end of 2005 with the Supreme Court confirming the status of
Subject's products are now widely accepted in the domestic and international
markets and have a very high brand equity.
Mining and Benefication
Kudremukh
The largest iron ore mine in India, is designed to produce 22.6 million
ton's of crude ore per year with a daily production capacity of ROM 100,000
tones. The mine is planned for a three - shift
operation. Blast holes of 12¼ " dia are drilled in
14m benches. The blasting is carried
out using slurry explosives. Blasted material is loaded by
10.7 cu.m electrical shovel into large dumpers of 120 metric ton capacity.
Process
The mined ore is
transported from benches to three Gyratory
Crushers capable of crushing the ore to minus 7" size. The
crushed ore is screened into coarse and fine fractions before
feeding to Autogenous Mills. The ore ground to minus 20
mesh size is subjected to primary magnetic
separation and the
concentrate, after re
grinding, is subjected
to secondary magnetic separation.
Column floatation system has also been
incorporated to improve the quality of
magnetic concentrate.
The primary magnetic tailings are
subjected to spiral separation
to recover non - magnetic concentrate which
is also further ground in the Ball Mills. Flotation
technique for improvement in the quality of iron ore concentrate has also been
added to the production facilities in the mining and beneficiation plant.
Process modifications are carried out regularly to ensure that the
product quality conforms to the product specifications in line with the
requirement of the market.
The concentrate produced is pumped through
a 67 Km long slurry pipeline to Mangalore where the slurry
is filtered to produce filter cake with about 9% moisture. The tailings
are pumped to a tailings dam from a different location in the same dam and
clean process water moves by gravity to
the concentrator plant. The
entire operation using the most
sophisticated equipment from crushing to
ship loading is fully automated and computer controlled.
Computerized mine planning techniques are in use
to maintain strict quality control and process parameters.
OVERVIEW:
Subject, a wholly owned Government of India Enterprise, was established
in 1976 to develop the mine and plant facilities to produce 7.5 million tonnes
of concentrate per year. The mine and plant facilities were commissioned in
1980 and the first shipment of concentrate was made in October 1981. A
pelletisation plant with a capacity of 3 million tonnes per year was
commissioned in 1987 for production of high quality blast furnace and direct
reduction grade pellets for export. Legend and wild beauty, Kudremukh, in the
State of
The idea of beneficiating the ore deposits was first proposed when several
Japanese companies came together with the National Mineral Development
Corporation (NMDC), a Government of India undertaking, evincing an interest in
such a project. Pilot studies suggested that the surface ore with 38% iron
could be enriched to a concentrate of 67% iron with available new technologies.
The concentrate could be transported to Mangalore, on the coast of the
Initially
A 110 km road through ghats was built, and a slurry pipeline to
Mangalore port, the port itself had to be deepened. Subject delivered the
project, in time, within the estimated cost. But
COMPANY PROFILE
The Country’s
prestigious 100% export oriented unit and Mini Rathna Company, subject was
Incorporated on 2nd April 1976. Has its Pelletisation Complex
and Pig Iron Complex at Mangalore, coastal city of
The
annual capacity of the Pellet Plant is to produce about 3.5 million tonnes and
2.16 lakh tonnes of Pig Iron required by the discerning consumers from the
steel industry worldwide and for the domestic market.
FUTURE INITIATIVES
The Company has envisaged following projects
for implementation for growth of the Company:
- Installation of Horizontal Pressure Filters
at Pellet Plant: To improve the productivity by reducing the moisture
content in the pellet feed, installation of Horizontal Pressure Filter at
the Pellet Plant is in progress. Purchase order has been placed on Larox
Corp.,
- Forward and Backward Integration at
Blast Furnace Unit (BFU), Mangalore: To make Blast Furnace Unit a viable
unit on stand alone basis, an Expression of Interest was floated invited
various Interested Parties to set up various value added products such as
Ductile Iron Spun Pipe (DISP), Coke Oven Battery with CPP etc. as a
forward and backward integration. The Company simultaneously approached
co-existing organizations in the Ministry of Steel. The response from both
Public Sector and Private Sector entities were quite encouraging. As RINL
have evinced their interest for setting up of DISP plant, the Board of
Directors thought fit to form a Joint Venture with them for setting up all
value added products in a phased manner at BFU. They are in the process of
fixing an agency for valuation of Blast Furnace Unit assets, in this
regard.
- Integrated Steel Plant (ISP): State
Government as a policy for granting mining lease clearly envisages that
State is in favor of entrepreneurs establishing real value addition to
iron ore like setting up Integrated Steel Plant within the State. In this
direction, an Expression of Interest was floated for setting up 1.5 MTPA
capacity Integrated Steel Plant on equity participation in the State
Government of Karnataka in the I phase, which subsequently will be
upgraded to 5.0 MTPA. In the proposed Jv, the Company proposed to take 26%
equity stake. Against the said EOI, one offer from URSIPL, a sister
concern of United Telecom Limited was received. The Company has appointed
M N Dastur and Co. as Technical consultants for the project. The bid
received from URSIPL was forwarded to the Consultant for scrutiny and for
techno-commercial recommendation. Based on the evaluation the Consultants
have recommended to proceed further in the matter of drawing up the JV
agreement with URSIPL. The Board of Directors agreed to initiate the
process for drawing up of the Joint Venture Agreement. The Consultants
have been advised accordingly.
- Chikkanaykanahalli Mining Lease:
Government of Karnataka has accorded in principle approval for grant of
mining lease over an area of 116.55 ha in Hombalghatta and Hosahalli
villages in favor of subject. MoEF, GOI,
- Other Mining leases: The matters in
respect of mining leases at Ramandurga Iron Ore Deposit in the state of
Karnataka and Khandadhar Iron
- Contractual Mining: The Company is in
dialogue with Mahanadi Coalfields Limited, a subsidiary Company of Coal
India Limited to allocate some of their coal blocks to subject to
undertake mining on contractual basis. The discussion is going on at the
highest level, which in the event materializes, Company can gainfully
utilize idle equipments and deploy trained manpower and generate
sufficient revenue.
- Acquisition of Tungabhadra Steel
Products Limited, Hospet: The growth potential could be achieved through
organic as well as inorganic ways like acquisition, merger etc. In this
background, Company was. approached by Department of Heavy Industries,
Government of India, for acquisition of Tungabhadra Steel Products
Limited. TSPL is a sick Company engaged in the business of structural
fabrication. TSPL is also having a mini hydel plant, situated about 200
kms. from Hospet plant. This mini hydel plant generates about 5.5 million
units per year. TSPL has nearly 88 acres of land at Hospet which can be
gainfully utilized in case the mining lease for Ramandurga Iron deposit is
obtained by the Company. Discussions with Government of India are under
progress.
- Kudremukh Mine: The Hon'ble Supreme Court vide its verdict dated 30th October 2002, had allowed mining till the end of 2005 by which the weathered secondary ore available in the already broken up area should be exhausted. An approximate quantity of such ore available was 54 million tons.
Due to paucity of time the Company
could mine only 30 million tons and as such the remaining secondary weathered
ore is still lying in the broken up area. Further, the Company's request for
extension of time for mining the balance secondary ore in already broken-up
area vide Rejoinder Return Submission dated 13.11.2006 was not agreed to by the
Exposure of the same to subsequent monsoon has resulted erosion of the material towards check dams. There has been series of bench slopes resulting in land slide.
The Hon'ble Supreme Court had directed Ministry of Mines to designate an officer to take over the possession of the mine immediately and also had directed IIT Delhi to take necessary steps to address the above issues. But till date none of the above activities have been carried out.
In view of the safety of the mines and to safeguard the environment and ecology it is high time for taking up the protective measures with due permissions from the Hon'ble Supreme Court.
BOARD OF DIRECTORS
FUNCTIONAL DIRECTORS
Sri Malay Chatterjee, took charge of the office of Chairman-cum-Managing
Director, subject on 01.07.2012. Prior to this assignment, Sri Chatterjee was Chairman-cum-Managing
Director of Hindustan Steel Works Construction Limited since September 2009.
Sri Chatterjee holds Bachelor of Engineering (Civil), Master Degree of Science
in Disaster Management and a Law Graduate. He is also member of various Professional
Bodies across the globe.
During his short stint as CMD, Hindustan Steelworks Construction Limited, Sri
Chatterjee has established the organization on a stronger financial footing
with much higher technical capabilities for attaining long term sustainability.
The turnover and order booking recording the highest since inception during
2012-13 to register CAGR of 22.98% and 24.58% respectively over last 5 years
with operational profit reaching an all time high of Rs.690.000 millions
despite innumerable impediments speak highly about the effective and imposing
administrative skill and managerial trait of Sri Chatterjee.
Sri Chatterjee started his career as an Assistant Engineer with National Water
Development Agency, Ministry of Water Resources, Government of India in 1984.
He has also served with State Government of Odisha for about 6 years with high
acclaim. Thereafter he devoted about 15 years of his illustrious career in
different capacities with Housing and Urban Development Corporation Limited (HUDCO),
A Central Public Sector Undertaking under Ministry of Housing and Urban
Poverty. While leaving HUDCO he worked as Executive Director, Chandigarh
Region.
During his eventful professional career, spanning over 28 year, Sri Chatterjee
an MS in Disaster Mitigation, apart from leaving indelible contributions in
large scale rural and urban development projects for creating new human
settlement, took up and successfully implemented a number of relief,
rehabilitation and disaster preparedness projects in the state of Odisha, West
Bengal, Bihar and Jammu and Kashmir utilizing PMO’s assistance substantially.
He has been instrumental in furthering industrial growth in the country through
sanction and implementation of large infrastructure projects like thermal and
hydro power, promotion of urban infrastructure, such as flyovers, ROBs, MRTS,
Shopping Complexes, water supply systems etc. He contributed immensely in
bridging the shortage in housing through implementation of housing projects for
the economically weaker section and lower income group under Government of
India and JNNURM programme of HSDP. Promoted a number of small and medium
township projects for making provision of urban amenities in rural areas. He
also assisted State Governments in furthering infrastructure programmes in the
state of West Bengal, Bihar, Jharkhand, Odisha, Punjab, Haryana, Uttarakhand
and Jammu and Kashmir.
Shri Chatterjee’s rich and varied contribution of over 28 years has been
recognized by prestigious professional, academic and Government institutions,
both national and international. He has been awarded with “TURNAROUND LEADER
AWARD 2010-11” at the World HR Congress held in Mumbai. The Institute of
Economics Studies, New Delhi awarded him “UDYOG RATNA AWARD” at Bangkok, Thailand.
The Institution of Engineers (India) on its 26th National Convention at
Bhubaneswar had recognized him for his distinguished and dedication held on
November 2010. Sri Chatterjee has been decorated with highest Construction
Industry Award “CIDC Viswakarma Award 2012” by Construction Industry
Development Council.
Sri Chatterjee at its helm and his varied knowledge and experience in support
subject is poised to attain greater heights.
Sri K. Subba Rao, Director (Production and Projects) since June 2011,
is a Graduate in Engineer in Electronics and Communicaiton. Sri Rao had started
off his career as a lecturer in the prestigious PES College of Engineering,
Mandya in the year of 1979. With short period of teaching experience, Shri Rao
joined the Indian Space Research Organization (ISRO). Later Shri Rao joined the
public sector Bharat Electronics Limited at Bangalore. subsequently he joined
subject as Engineer II on 23.12.1981 at Kudremukh as an Electronics and
Communication Engineer in the Instrumentation and Hardware department. Shri
Subba Rao climbed the ladder with his hard and dedicated work in the field of
Instrumentation and Hardware and elevated to the senior level. Prior to his
elevation as a Director (P&P), he was working as General Manager (Production)
posted at Blast Furnace Unit of the Company. As Director (P&P) he is
overall in charge of the two manufacturing plants of the Corporation viz;
Pellet Plant and Blast Furnace unit and is responsible for total management of
the plants within the parameters of the Corporation policies and keep abreast
of the technological development and adopting the same through
renovation/modernization programmes to improve productivity and overcome
various operational bottlenecks for sustained performance. Being the head of
Projects he is responsible for coordination of all technical functions in the
Company including implementation of the projects, providing directions,
adoption of new methods to promote production, formulation of technical
programmes for overall development, planning, monitoring of different
activities etc.
Sri Laxminarayana, Director (Finance) since September 2011, a
Chartered Accountant and Post Graduation in Management Accountancy (MAC-I) from
the Institute of Chartered Accountants of India, comes with rich experience of
30 years of Corporate Finance Management. Prior to his elevation as a Director
(Finance), he was the Executive Director (Finance) posted at the Corporate
Office of the Company. As Finance Director on the Board of subject, he is
responsible for formulating financial strategies and plans to enable the
company in achieving its Vision. He gives directions with respect to the entire
gamut of Financial Management of the organization including optimum utilization
of funds, International Trade Finance, Working Capital Management, Trade
Finance, Forex and risk management and other financial aspect of international
trading, annual financial budget and undertaking budgetary controls. He is also
responsible for designing internal control systems commensurate with the size
of the organization and for ensuring compliance of such systems.
Shri M V Subba Rao, assumed office of Director (Commercial)
since Feb 2013, is a Graduate in B. Tech., (Metallurgy) from NIT, Warangal,
DIM, PGD in Marketing and MBA (Marketing).
Shri Rao prior to his elevation as Director (Commercial), he worked as
ED (Commercial) at Corporate Office to look after all commercial activities. He
started his career as a Production Incharge with Mittal Group, later on shifted
to Public Sector and MNC Steel Plants for the growth in the career. He played a
key roll in introducing gas based DRI/HBI in Steel making through Electric Arc
Furnace, Industrial Furnace, COREX etc., Presented and published several
Technical papers related to Steel making, Sponge Iron, Modernization of Steel
industry etc.
As a Executive Director (Commercial), improved turn over above 18000.000
millions which is highest in since inception. He has also played a key roll in
developing domestic pellet market as well as global market. Also instrumental
in introducing use of pellets in Public Sector Plants like SAIL, RINL etc.
Being the HOD of Commercial Dept he is responsible for Marketing, Materials,
Business Development and HR.
NON FUNCTIONAL DIRECTORS
Sri E K Bharat Bhushan, is a Government nominee Director
w.e.f.26.07.2012. He graduated with a Master of Arts degree from Kerala
University in English Language and Literature and did M.P.A. from Harvard
University, USA – Edward Mason International Fellow. Sri Bhushan is an Indian
Administrative Services Officer of Kerala Cadre 1979 batch. He is currently
Additional Secretary and Financial Adviser of Ministry of Steel, Govt. of
India. Prior to this, Sri Bharat Bhushan was in the Ministry of Civil Aviation
as Additional Secretary and Financial Adviser and was holding additional charge
of Director General of Civil Aviation. He has also held various administrative
posts in the State of Kerala.
Sri Lokesh Chandra, is a Government nominee Director. He is a graduate
in Engineering (Civil) Gold Medal from Allahabad University and M.Tech
(Structures) awarded President Gold Medal from IIT, Delhi. Shri Lokesh Chandra
is an Indian Administrative Services officer of Maharashtra Cadre (IAS:93:MH).
He is currently Joint Secretary in the Ministry of Steel. Prior to this, Shri
Lokesh Chandra Private Secretary to Union Home Minister and has also hold
various administrative posts in the State of Maharashtra.
Sri K Narasimha Murthy, is appointed as an Independent Director on the
Board in August 2011. Shri Murthy is a Science graduate and fellow member of
Institute of Chartered Accountants of India and Institute of Cost and Works
Accounts of India. His areas of expertise include Cost Audit, Cost reduction
Programme, Management Information and control systems Development, Critical
analysis of performance, SWOT analysis, Management Audit, Business Valuations,
Corporate Planning, Strategic Planning, Organization Analysis and Structure,
Mergers and Acquisitions, Internal Audit, Concurrent Audit, Pre-Audit, Manpower
Planning and Development, Designing Production Incentive Schemes, Revival of
Sick Units and other Management Support Services. He is on the Board of LIC
Housing Finance Limited, Max Health Care Institute Limited, Max India Limited,
A P State Financial Corporation, NABARD, Srikari Management Consultants
(Private) Limited.
Sri Vinai Kumar Agarwal, is appointed as an Independent Director on the
Board in August 2011. Sri Agarwal is a Science Graduate and holds Bachelor
Degree in Engineering (Civil) from IIT Roorkee. Sri Agarwal served in various
capacities in Ministry of Railways. He also served RITES Limited, a Schedule
‘A’ Company of Ministry of Railways which is also a “Mini Ratna”. The Company
attained Schedule ‘A’ status in 2007 due to impressive growth and high
potential of business expansion during my stewardship. He has extensive
exposure in African countries where RITES operated as Chairman of Board of
Directors of the two subsidiaries created in Mozambique and Tanzania with 51%
share and rest 49% with the Governments of those two countries. These companies
operated the rail network of these countries. This long association for more
than 6 years has given me deep insight in the behavioral attitude of African
Countries, Politicians, Bureaucrats and workers and the ground realities of
business scenario. During his tenure as MD, he has expanded RITES business of
leasing rolling stock in African countries. He also opened doors of RITES
expertise to prominent private players in the infrastructure domain in the
country which created new market for RITES. He was acknowledge for his
outstanding performance of the RITES internationally and conferred the “BEST
EXECUTIVE IN ASIA” (Sub continent Australia and New Zealand) by STEVIE INTERNATIONAL
BUSINESS AWARDS, 2008 at Dublin, Ireland. He is also on the Board of Dredging
Corporation of India Limited, a Central Public Sector Undertaking.
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 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 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.54.27 |
|
|
1 |
Rs.84.23 |
|
Euro |
1 |
Rs.70.90 |
INFORMATION DETAILS
|
Report Prepared
by : |
SMN |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
5 |
|
--CREDIT LINES |
1~10 |
7 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
NO |
|
--LITIGATION |
YES/NO |
YES |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
NO |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
DEFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
53 |
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.