MIRA INFORM REPORT

 

 

Report Date :

24.08.2013

 

IDENTIFICATION DETAILS

 

Name :

GODAWARI POWER AND ISPAT LIMITED

 

 

Formerly Known As :

ISPAT GODAWARI LIMITED

 

 

Registered Office :

Plot No. 428/2, Phase-1, Industrial Area, Siltara, Raipur – 493111, Chhattisgarh

 

 

Country :

India

 

 

Financials (as on) :

31.03.2012

 

 

Date of Incorporation :

21.09.1999

 

 

Com. Reg. No.:

013756

 

 

Capital Investment / Paid-up Capital :

Rs. 317.562 Millions

 

 

CIN No.:

[Company Identification No.]

L27106CT1999PLC013756

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

JBPI00086C

 

 

PAN No.:

[Permanent Account No.]

AAACI7189K

 

 

Legal Form :

A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges.

 

 

Line of Business :

Manufacturing of Iron Ore Pellets, Sponge Iron, Steel Billets, Wire Rods, H.B. Wire and Ferro Alloys and Iron Ore Mining and also Generation of Electricity.

 

 

No. of Employees :

500 (Approximately)

 

 

RATING & COMMENTS

 

MIRA’s Rating :

A (61)

 

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 25150000

 

 

Status :

Good

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

Comments :

Subject is an established company having good track record.

 

Sales of the company have increased in 2012. Overall financial of the company appears to be sound.

 

Trade relations are fair. Business is active. Payment terms are regular and as per commitments.

 

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

 

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 – March 31st, 2013

 

Country Name

Previous Rating

(31.12.2012)

Current Rating

(31.03.2013)

India

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

INDIAN ECONOMIC OVERVIEW

 

We are living in a world where volatility and uncertainty have become the New Normal. We saw a change of government in countries like Tunisia, Egypt, Libya and Vietnam. Once powerful countries in Europe are now fighting for bankruptcy. We have taken growth in the developing part of the world for granted but economic growth in China and India has begun to slow. Companies that were synonymous with their product categories just a few years ago are now no longer in existence. Kodak, the inventor of the digital camera had to wind up its operations, HMV, the British entertainment retailing company and Borders, once the second largest bookstore have shut down due to their inability to evolve their business models with the changing time. Readers’ Digest, Thomson Register are no more !

 

There is another megatrend happening. The World order is changing as economic power shifts from West to East. According to McKinsey study, it took Britain more than 100 years to double its economic output per person during its industrial revolution and the US later took more than 50 years to do the same. More than a century later, China and India have doubled their GDP per capital in 12 and 18 years respectively. By 2020, emerging Asia will become the world’s largest consuming block, overtaking North America.

 

The years after the outbreak of the global financial crisis, the world economy continues to remain fragile. The Indian economy demonstrated remarkable resilience in the initial years of the contagion but finally lost ground last year. GDP growth slowed down. Currency has been weakening. There is a marked deceleration in agriculture, industry and services. Dampening sentiment led to a cut-back in investment as well as private consumption expenditure.  Inflation remained at high levels fuelled by the pressure from the food and fuel sectors. The large fiscal and current account deficit s continued to cause grave concern. It is imperative that India regains its growth trajectory of 8-9 % sooner than later. This is crucially important given the need to create gainful livelihood opportunities for the millions living in poverty as also the large contingent of young people joining the job market every year.

 

 

EXTERNAL AGENCY RATING

 

Rating Agency Name

CARE

Rating

Long term Bank facilities : A

Rating Explanation

Adequate degree of safety and low credit risk 

Date

06.08.2012

 

 

Rating Agency Name

CARE

Rating

Short term Bank facilities : A1

Rating Explanation

Very strong degree of safety and lowest credit risk.

Date

06.08.2012

 

 

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.

 

INFORMATION PARTED BY (GENERAL DETAILS)

 

Name :

Mr. Ravi Rao

Designation :

Accounts Department

Contact No.:

91-771-4082333

Date :

22.08.2013

 

 

LOCATIONS

 

Registered Office/ Factory :

Plot No. 428/2, Phase-1, Industrial Area, Siltara, Raipur – 493111, Chhattisgarh, India

Tel. No.:

91-771-4082333/ 4082235

Fax No.:

91-771-4082234

E-Mail :

ycrao65@gmail.com

Website :

http://www.gpilindia.com

Location:

Owned

 

 

Corporate Office :

Hira Arcade, First Floor, New Bus Stand, Pandri, Raipur - 492001, Chhattisgarh, India

Tel. No.:

91-771-4082000/ 4082001

Fax No.:

91-771-4057601

E-Mail :

info@gpilindia.in

 

 

Mumbai Office :

Unit No.606, Town Centre, 6th Floor, Andheri Kurla Road, Andheri, Saki Naka, Near Mittal Estate, Mumbai - 400059, Maharashtra, India

Tel. No.:

91-22-28592621/ 28592622/ 28592623

Fax No.:

91-22-28592851

E-Mail :

investors@gpilindia.in

 

 

DIRECTORS

 

AS ON 31.03.2012

 

Name :

Mr. B. Choudhuri

Designation :

Chairman (Independent Director)

 

 

Name :

Mr. B.L. Agrawal

Designation :

Managing Director

 

 

Name :

Mr. Abhishek Agrawal

Designation :

Executive Director

 

 

Name :

Mr. Dinesh Agrawal

Designation :

Non Executive Director

Date of Birth/Age :

41 years

Qualification :

B.E. (Electrical)

Experience :

He has been associated with the company's Ferro alloys and steel rolling units in the past. He is currently overseeing the setting up of the captive power plant. He has been associated with the Company since incorporation.

Date of Appointment :

21.09.1999

Other Directorship :

·         Godawari Clinkers and Cement Limited

Godawari Natural Resources Limited

Krishna Global Minerals Limited

Godawari Integrated Steels (India) Limited

Hira Global Limited

Godawari Techfab Limited

 

 

Name :

Mr. Dinesh Gandhi

Designation :

Executive Director- Finance

Date of Birth/Age :

48 Years

Qualification :

Chartered Accountant and Company Secretary

Experience :

He has over two decades of experience in the areas of accounts, finance, project planning and financing. A dynamic financial analyst, his competence strategically directs the company.

Date of Appointment :

25.02.2005

Other Directorship :

·         Godawari Green Energy Limited

Ardent Steel Limited

Maruti Clean Coal and Power Limited

 

 

Name :

Mr. Vinod Pillai

Designation :

Executive Director

 

 

Name :

Mr. Shashi Kumar

Designation :

Independent Director

 

 

Name :

Mr. B. N. Ojha

Designation :

Independent Director

 

 

Name :

Mr. G. B. Desai

Designation :

Chairman (Upto 09.11.2011)

 

 

Name :

Mr. Siddharth Agrawal

Designation :

Non Executive Director (Upto 09.11.2011)

 

 

KEY EXECUTIVES

 

Name :

Mr. Y.C. Rao

Designation :

Compliance Officer and Company Secretary

 

 

Name :

Mr. Ravi Rao

Designation :

Accounts Department

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

AS ON 30.06.2013

 

Category of Shareholder

No. of Shares

Percentage of Holding

(A) Shareholding of Promoter and Promoter Group

 

 

(1) Indian

 

 

Individuals / Hindu Undivided Family

17925684

54.72

Bodies Corporate

2205169

6.73

Any Others (Specify)

1125000

3.43

Trusts

1125000

3.43

Sub Total

21255853

64.89

(2) Foreign

 

 

Total shareholding of Promoter and Promoter Group (A)

21255853

64.89

(B) Public Shareholding

 

 

(1) Institutions

 

 

Mutual Funds / UTI

1911218

5.83

Financial Institutions / Banks

218295

0.67

Foreign Institutional Investors

23032

0.07

Sub Total

2152545

6.57

(2) Non-Institutions

 

 

Bodies Corporate

2047999

6.25

Individuals

 

 

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

4986877

15.22

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

1978972

6.04

Any Others (Specify)

334001

1.02

Clearing Members

64426

0.20

Non Resident Indians

243686

0.74

Trusts

100

0.00

Directors & their Relatives & Friends

25789

0.08

Sub Total

9347849

28.54

Total Public shareholding (B)

11500394

35.11

Total (A)+(B)

32756247

100.00

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

 

 

(1) Promoter and Promoter Group

0

0.00

(2) Public

0

0.00

Sub Total

0

0.00

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

32756247

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturing of Iron Ore Pellets, Sponge Iron, Steel Billets, Wire Rods, H.B. Wire and Ferro Alloys and Iron Ore Mining and also Generation of Electricity.

 

 

Products/ Services :

ITC Code No.

Product Descriptions

72031000

Sponge Iron

72071920

M.S. Billets

72061010

M.S. Ingots

27160000

Electricity

72171000

H.B. Wire

72021100

Ferro Manganese

280440

Oxygen Gas

26011210

Pellet

26011130

Iron Ore

72171000

MS Bar & Rod

 

 

Terms :

 

Selling :

L/C and Credit

 

 

Purchasing :

L/C and Credit

 

 

PRODUCTION STATUS (AS ON 31.03.2011)

 

Particulars

Unit

 

Installed Capacity

Actual Production

Iron Ore Mining

M.T.

 

NA

522561

Pellet*

M.T.

 

600000

354561

Sponge Iron**

M.T.

 

495000

279441

Steel Billets

M.T.

 

400000

85252

M.S. Round in Coil, CTD Bar***

M.T.

 

100000

68297

H B Wire

M.T.

 

150000

77122

Ferro Alloys

M.T.

 

16500

5727

Electricity****

MW/

KWH

 

76.30

318211068

Oxygen Gas*****

CUM

 

1095000

1111313

 

Note:

* Includes 270593 MT (35046 MT) internally consumed.

** Includes 91234.50 MT (54695.53 MT) internally consumed.

*** Includes 329966 CUM (270186 CUM) internally consumed.

**** Includes 199461041 KWH (141790426 KWH) consumed auxillarily and by other divisions.

***** Includes 15597.02 MT internally consumed.

 

 

GENERAL INFORMATION

 

Customer:

End Users

 

 

No. of Employees :

500 (Approximately)

 

 

Bankers :

·         Axis Bank Limited, Jeevan Beema Marg, Pandri, Raipur - 492001, Chhattisgarh, India

Tel No.: 91-771-2445501

 

Bank of Baroda, Corporate Financial Services Branch, 4th Floor, 10/12, Mumbai Samachar Marg, Fort, Mumbai - 400001, Maharashtra, India

 

Canara Bank, Prime Corporate Branch-II, Verma Chambers, 2nd Floor, Homji Street, Fort, Mumbai - 400001, Maharashtra, India

 

IDBI Bank Limited

 

Oriental Bank of Commerce, Main Branch, Raj Tower, Tatyapara, G. E. Road, Raipur - 492001, Chhattisgarh, India

 

State Bank of India, Commercial Branch, 2nd Floor, Pujari Chambers, Pachpedi Naka, Raipur - 492001, Chhattisgarh, India

 

Vijaya Bank, Industrial Finance Branch, 2nd Floor, New Excelsior Building, Wallace Street, Fort, Mumbai - 400001, Maharashtra, India

 

Yes Bank Limited, 9th Floor, Nehru Centre, Discovery of India, Dr. Annie Besant Road, Worli, Mumbai - 400018, Maharashtra, India

 

ICICI Bank Limited, Regional Office, ICICI Tower, NBCC Palace, Bhishmpitamah Marg, Pragati Vihar, New Delhi - 110003, India

 

Indusind Bank Limited, 2401 Gen Thimmayya Road, Contonment, Pune - 411001, Maharashtra, India

 

 

Facilities :

 

Secured Loans

31.03.2012

31.03.2011

 

 

(Rs. In Millions)

LONG-TERM BORROWINGS

 

 

1250 (31 March, 2011: 1250) A Series 12% Redeemable Non-Convertible Debentures of Rs. 1.000 Million each

1250.000

1250.000

500 (31 March, 2011: 500) B Series 12.75% Redeemable Non-Convertible Debentures of Rs. 1.000 Million each

500.000

0.000

Term Loans

Indian rupee loan from banks

1253.500

2137.079

Foreign currency loan from banks

1037.092

446.750

Other loans

67.127

2.325

SHORT-TERM BORROWINGS

 

 

Cash Credit from banks

1410.324

1050.088

Buyers Credit/FCLR facility

189.470

92.243

Short term rupee loans from bank

0.000

252.389

Total

5707.513

5230.874

 

Note:

 

LONG-TERM BORROWINGS

 

Security and terms and conditions for above loans:

 

a)       12% redeemable non-convertible debentures `A' Series are redeemable in 8 equal half yearly installments commencing from 31st July, 2014. The `A' Series Debentures are secured by First Pari passu charge on the fixed assets of the Company both present and future and 2nd pari passu charge on the current assets of the Company both present and future.

 

b)       12.75% redeemable non-convertible debentures `B' Series are redeemable in a single Bullet repayment at the end of 7 years i.e.31st October, 2018 with a put and call option at the end of 5th year i.e. on 31st October, 2016. The `B' Series Debentures are secured by Pari passu first charge on the tangible fixed assets of the Company.

 

c)       Out of Indian rupee term loans of Rs. 2150.200 Millions, Rs. 1933.300 Millions are secured by a first pari passu charge over immovable and movable assets of the Company, both present and future, subject to prior charge over the current assets of the Company i.e. stocks of raw materials, finished goods, stock in process, stores and consumables, trade receivables in favour of the bankers of the Company or securing working capital facilities from banks and rupee term loan of Rs. 216.900 Millions from Vijaya Bank is secured by residual charge over immovable and movable assets of the Company.

 

d)       Further the rupee term loans and working capital loan are also secured by pledge of 1600000 equity shares of Hira Steels Limited held as investments by the Company and pledge of 2500000 equity shares of the Company held by the promoters.

 

e)       Foreign Currency term loan from Bank of Baroda is repayable in 8 half yearly installments started from 31.08.2012. The total outstanding as on 31.03.2012 was Rs.518.500 Millions. The loan is secured by a first pari passu charge on the immovable and movable assets of the Company and second pari passu charge on the current assets of the Company. The loan is further secured by personal guarantee of promoter directors of the Company.

 

f)         Foreign Currency term loan from Axis Bank is partially disbursed and the repayment shall be started from 31.01.2015. The total outstanding as on 31.03.2012 was Rs. 648.200 Millions. The loan is secured by a first pari passu charge on the immovable and movable assets of the Company and second pari passu charge on the current assets of the Company. The loan is further secured by personal guarantee of promoter directors of the Company.

 

g)      The credit facilities mentioned in point c, e and f are also secured by personal guarantee of promoter directors of the Company and their relatives.

 

 

SHORT-TERM BORROWINGS

 

Terms and Conditions of Secured Loans

 

i)         The working capital facilities including buyers credit/FCLR facility from Banks are secured by first pari passu charge over entire current assets i.e. stocks of raw materials, finished goods, stock in process, stores and consumables, trade receivables of the Company and second charge over the other movable assets and immovable assets of the Company.

 

ii)       The above credit facilities are also secured by personal guarantee of promoter directors of the Company and their relatives.

 

iii)      Further Working Capital Facility are also secured in line with rupee term loans by pledge of 1600000 equity shares of Hira Steels Limited Held as investments by the company and pledge of 2500000 equity shares of the company held by the promoters.

 

 

 

 

 

Banking Relations :

--

 

 

Financial Institution :

Axis Trustee Services Limited, Axis House, 2nd Floor, Bombay Dyeing Mills Compound, Pandurang Budhkar Marg, Worli, Mumbai - 400025, Maharashtra, India

 

 

Auditors :

 

Name :

O.P. Singhania and Company

Chartered Accountants

Address :

Raipur, Chhattisgarh, India

 

 

Subsidiaries :

·         Ardent Steel Limited

Godawari Energy Limited

Hira Ferro Alloys Limited

 

 

Joint Ventures :

·         Raipur Infrastructure Company Limited

Chhattisgarh Captive Coal Mining Limited

 

 

Wholly owned Subsidiaries :

·         Godawari Green Energy Limited

Godawari Clinkers and Cement Limited

Krishna Global and Mineral Limited

Godawari Integrated Steels (India) Limited

 

 

Other Related Enterprises where control exist :

·         Alok Ferro Alloys Limited

Hira Cement Limited

Jagdamba Power and Alloys Limited

Chhattisgarh Power and Coal Beneficiation Limited

Hira Global Limited

Hira Power and Steels Limited

Hira Steels Limited

Raipur Complex

 

 

CAPITAL STRUCTURE

 

AS ON 29.09.2012

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

49800000

Equity Shares

Rs. 10/- each

Rs. 498.000 Millions

3200000

Preference Shares

Rs. 10/- each

Rs. 32.000 Millions

 

Total

 

Rs. 530.000 Millions

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

32756247

 

Equity Shares

Rs. 10/- each

Rs. 327.562 Millions

 

 

 

 

 

AS ON 31.03.2012

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

49800000

Equity Shares

Rs. 10/- each

Rs. 498.000 Millions

3200000

Preference Shares

Rs. 10/- each

Rs. 32.000 Millions

 

Total

 

Rs. 530.000 Millions

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

31756247

Equity Shares

Rs. 10/- each

Rs. 317.562 Millions

 

 

 

 

 

 

a. Reconciliation of the shares outstanding at the beginning and at the end of the reporting period

 

Equity shares

31.03.2012

 

 

Number of Shares

Rs. in Millions

At the beginning of the period

31756247

317.562

Issued on amalgamation

--

--

Outstanding at the end of the period

31756247

317.562

 

 

b. Terms/rights attached to equity shares

 

The Company has only one class of equity shares having a par value of Rs. 10/- per share. Each holder of equity shares is entitled to one vote per share. the Company declares and pays dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

 

During the year ended 31st March,2012, the amount of per share dividend recognised as distributions to equity shareholders was Rs. 2.50 (31st March,2011 : Rs. 2.50)

 

In the event of liquidation of the Company, the holders of the equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

 

 

c. Details of shareholders holding more than 5% shares in the Company:

 

 

31.03.2012

 

Equity shares of Rs. 10/- each fully paid

Number of Shares

% of Shares

ICICI Prudential Discovery Fund

1920765

6.05

Dinesh Agrawal

1846347

5.81

B.L. Agrawal

1731398

5.45

 

5498510

17.31

 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

 

31.03.2012

31.03.2011

I.        EQUITY AND LIABILITIES

 

 

 

(1)Shareholders' Funds

 

 

 

(a) Share Capital

 

317.562

317.562

(b) Reserves & Surplus

 

5970.875

5273.682

(c) Money received against share warrants

 

0.000

0.000

 

 

 

 

(2) Share Application money pending allotment

 

0.000

0.000

Total Shareholders’ Funds (1) + (2)

 

6288.437

5591.244

 

 

 

 

(3) Non-Current Liabilities

 

 

 

(a) long-term borrowings

 

4107.719

3836.154

(b) Deferred tax liabilities (Net)

 

0.000

0.000

(c) Other long term liabilities

 

318.045

16.274

(d) long-term provisions

 

13.807

10.954

Total Non-current Liabilities (3)

 

4439.571

3863.382

 

 

 

 

(4) Current Liabilities

 

 

 

(a) Short term borrowings

 

1899.895

1759.262

(b) Trade payables

 

786.030

557.359

(c) Other current liabilities

 

1183.389

933.671

(d) Short-term provisions

 

228.913

177.586

Total Current Liabilities (4)

 

4098.227

3427.878

 

 

 

 

TOTAL

 

14826.235

12882.504

 

 

 

 

II.      ASSETS

 

 

 

(1) Non-current assets

 

 

 

(a) Fixed Assets

 

 

 

(i) Tangible assets

 

6751.012

6836.707

(ii) Intangible Assets

 

19.534

20.717

(iii) Capital work-in-progress

 

1359.219

368.543

(iv) Intangible assets under development

 

0.000

0.000

(b) Non-current Investments

 

2123.344

2120.927

(c) Deferred tax assets (net)

 

0.000

0.000

(d)  Long-term Loan and Advances

 

51.431

36.039

(e) Other Non-current assets

 

65.863

44.317

Total Non-Current Assets

 

10370.403

9427.250

 

 

 

 

(2) Current assets

 

 

 

(a) Current investments

 

0.000

0.000

(b) Inventories

 

2622.641

2287.289

(c) Trade receivables

 

821.421

540.253

(d) Cash and cash equivalents

 

391.366

57.199

(e) Short-term loans and advances

 

620.375

570.484

(f) Other current assets

 

0.029

0.029

Total Current Assets

 

4455.832

3455.254

 

 

 

 

TOTAL

 

14826.235

12882.504

 

 

SOURCES OF FUNDS

 

 

 

31.03.2010

SHAREHOLDERS FUNDS

 

 

 

1] Share Capital

 

 

280.698

2] Share Application Money

 

 

0.000

3] Reserves & Surplus

 

 

4515.878

4] (Accumulated Losses)

 

 

0.000

NETWORTH

 

 

4796.576

LOAN FUNDS

 

 

 

1] Secured Loans

 

 

3914.989

2] Unsecured Loans

 

 

0.000

TOTAL BORROWING

 

 

3914.989

DEFERRED TAX LIABILITIES

 

 

0.000

 

 

 

 

TOTAL

 

 

8711.565

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

 

 

5805.780

Capital work-in-progress

 

 

601.662

 

 

 

 

INVESTMENT

 

 

715.416

DEFERRED TAX ASSETS

 

 

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories
 

 

1586.379

 

Sundry Debtors
 

 

358.382

 

Cash & Bank Balances
 

 

136.687

 

Other Current Assets
 

 

0.000

 

Loans & Advances
 

 

472.554

Total Current Assets
 

 

2554.002

Less : CURRENT LIABILITIES & PROVISIONS
 

 

 

 

Sundry Creditors
 

 

180.035

 

Other Current Liabilities
 

 

599.277

 

Provisions
 

 

185.983

Total Current Liabilities
 

 

965.295

Net Current Assets
 

 

1588.707

 

 

 

 

MISCELLANEOUS EXPENSES

 

 

0.000

 

 

 

 

TOTAL

 

 

8711.565

 

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2012

 

31.03.2011

31.03.2010

 

SALES

 

 

 

 

 

Revenue from operations (net)

17315.027

9348.153

7764.296

 

 

Other Income

30.408

29.365

30.147

 

 

TOTAL                                     (A)

17345.435

9377.518

7794.443

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Cost of raw material and component consumed

12287.778

5603.731

 

 

 

Purchase of Traded Goods

126.214

103.758

 

 

 

(Increase)/decrease in inventories of finished goods work-in-progress and traded goods

(465.450)

(352.803)

 

 

 

Employees benefits expenses

380.134

293.959

 

 

 

Other Expenses

2639.219

1765.314

 

 

 

TOTAL                                     (B)

14967.895

7413.959

6538.119

 

 

 

 

 

Less

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

2377.540

1963.559

1256.324

 

 

 

 

 

Less

FINANCIAL EXPENSES                         (D)

868.523

602.459

320.391

 

 

 

 

 

 

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

1509.017

1361.100

935.933

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

510.673

468.296

316.242

 

 

 

 

 

 

PROFIT BEFORE TAX (E-F)                               (G)

998.344

892.804

619.691

 

 

 

 

 

Less

TAX                                                                  (H)

208.882

180.148

105.667

 

 

 

 

 

 

PROFIT AFTER TAX (G-H)                                (I)

789.462

712.656

514.024

 

 

 

 

 

 

TRANSFER ON AMALGAMATION

0.000

96.036

0.000

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

2666.654

2103.038

1771.115

 

 

 

 

 

Less

APPROPRIATIONS

 

 

 

 

 

Transfer to General Reserve

149.213

100.000

100.000

 

 

Transfer to Debenture Redemption Reserve

207.500

52.500

0.000

 

 

Dividend

79.390

79.390

70.175

 

 

Tax on Dividend

12.879

13.186

11.926

 

 

 

448.982

245.076

182.101

 

BALANCE CARRIED TO THE B/S

3007.134

2666.654

2103.038

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

 

 

 

 

 

Sale of VER

1.084

6.719

0.000

 

 

Sale of goods on FOB Value

30.023

0.000

0.000

 

TOTAL EARNINGS

31.107

6.719

0.000

 

 

 

 

 

 

IMPORTS

 

 

 

 

 

Capital Goods

14.400

28.958

41.099

 

 

Raw Material and Stores items

708.282

202.808

1.704

 

TOTAL IMPORTS

722.682

231.766

42.803

 

 

 

 

 

 

Earnings Per Share (Rs.)

24.86

22.44

18.31

 

 

QUARTERLY RESULTS

 

PARTICULARS

 

30.09.2012

31.12.2012

31.03.2013

30.06.2013

 

1st Quarter

2nd Quarter

3rd Quarter

4th Quarter

Sales Turnover

4892.000

4398.000

4827.200

3806.100

Total Expenditure

4351.300

3860.500

4278.700

3333.600

PBIDT (Excl OI)

540.700

537.500

548.500

472.500

Other Income

17.200

14.900

52.700

17.000

Operating Profit

557.900

552.400

601.200

489.500

Interest

211.500

225.100

267.200

221.600

Exceptional Items

0.000

0.000

0.000

0.000

PBDT

346.400

327.300

334.000

267.900

Depreciation

132.900

131.700

128.800

132.200

Profit Before Tax

213.500

195.600

205.200

135.700

Tax

56.600

39.200

(366.500)

(47.100)

Provisions and Contingencies

0.000

0.000

0.000

0.000

Reported PAT

156.900

156.400

571.700

182.800

Extraordinary Items       

0.000

0.000

0.000

0.000

Prior Period Expenses

0.000

0.000

0.000

0.000

Other Adjustments

0.000

0.000

0.000

0.000

Net Profit

156.900

156.400

571.700

182.800

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2012

31.03.2011

31.03.2010

PAT / Total Income

(%)
4.55

7.60

6.59

 

 
 

 

 

Net Profit Margin

(PBT/Sales)

(%)
5.77

9.55

7.98

 

 
 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)
8.80

8.59

7.41

 

 
 

 

 

Return on Investment (ROI)

(PBT/Networth)

 
0.16

0.16

0.13

 

 
 

 

 

Debt Equity Ratio

(Total Debt/Networth)

 
0.96

1.00

0.82

 

 
 

 

 

Current Ratio

(Current Asset/Current Liability)

 
1.09

1.01

2.65

 

 

LOCAL AGENCY FURTHER INFORMATION

 

 

Sr. No.

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

Yes

10]

Designation of contact person

Yes

11]

Turnover of firm for last three years

Yes

12]

Profitability for last three years

Yes

13]

Reasons for variation <> 20%

--

14]

Estimation for coming financial year

No

15]

Capital in the business

Yes

16]

Details of sister concerns

Yes

17]

Major suppliers

No

18]

Major customers

No

19]

Payments terms

Yes

20]

Export / Import details (if applicable)

No

21]

Market information

--

22]

Litigations that the firm / promoter involved in

--

23]

Banking Details

Yes

24]

Banking facility details

Yes

25]

Conduct of the banking account

--

26]

Buyer visit details

--

27]

Financials, if provided

Yes

28]

Incorporation details, if applicable

Yes

29]

Last accounts filed at ROC

Yes

30]

Major Shareholders, if available

Yes

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

Yes

 

 

INDEX OF CHARGES

 

S.NO.

CHARGE ID

DATE OF CHARGE CREATION/MODIFICATION

CHARGE AMOUNT SECURED

CHARGE HOLDER

ADDRESS

SERVICE REQUEST NUMBER (SRN)

1

10418603

25/03/2013

1,100,000,000.00

BANK OF BARODA

CORPORATE FINANCIAL SERVICES BRANCH, 4TH FLOOR, 10/12, MUMBAI SAMACHAR MARG, FORT, MUMBAI - 400001, MAHARASHTRA, INDIA

B72856651

2

10399811

26/03/2013 *

3,768,100,000.00

STATE BANK OF INDIA

COMMERCIAL BRANCH, 2ND FLOOR, PUJARI CHAMBERS, PACHPEDI NAKA, RAIPUR - 492001, CHHATTISGARH, INDIA

B72931058

3

10395277

14/12/2012

510,000,000.00

AXIS BANK LIMITED

JEEVAN BEEMA MARG, PANDRI, RAIPUR – 492001, CHHATTISGARH, INDIA

B65266488

4

10394679

27/11/2012

2,160,000,000.00

CANARA BANK

PRIME CORPORATE BRANCH-II, VARMA CHAMBERS, 2ND FLOOR, HOMJI STREET, FORT, MUMBAI - 400001, MAHARASHTRA, INDIA

B65061202

5

10369121

10/10/2012 *

300,000,000.00

AXIS TRUSTEE SERVICES LIMITED

AXIS HOUSE, 2ND FLOOR, BOMBAY DYEING MILLS COMPOUND, PANDURANG BUDHKAR MARG, WORLI, MUMBAI - 400025, MAHARASHTRA, INDIA

B61633244

6

10363840

26/06/2012

600,000,000.00

ICICI BANK LIMITED

REGIONAL OFFICE, ICICI TOWER, NBCC PALACE, BHISHMPITAMAH MARG, PRAGATI VIHAR, NEW DELHI - 110003, INDIA

B42942250

7

10357626

25/04/2012

1,945,000.00

INDUSIND BANK LIMITED

2401 GEN THIMMAYYA ROAD, CONTONMENT, PUNE - 411001, MAHARASHTRA, INDIA

B40381253

8

10357629

25/04/2012

1,945,000.00

INDUSIND BANK LIMITED

2401 GEN THIMMAYYA ROAD, CONTONMENT, PUNE - 411001, MAHARASHTRA, INDIA

B40382293

9

10349451

12/07/2012 *

2,791,100,000.00

AXIS TRUSTEE SERVICES LIMITED

AXIS HOUSE, 2ND FLOOR, BOMBAY DYEING MILLS COMPOUND, PANDURANG BUDHKAR MARG, WORLI, MUMBAI - 400025, MAHARASHTRA, INDIA

B45091345

10

10349263

06/03/2012

423,700,000.00

AXIS BANK LIMITED

JEEVAN BEEMA MARG, PANDRI, RAIPUR - 492001, CHHATTISGARH, INDIA

B37435849

11

10351520

13/06/2012 *

500,000,000.00

AXIS TRUSTEE SERVICES LIMITED

AXIS HOUSE, 2ND FLOOR, BOMBAY DYEING MILLS COMPOUND, PANDURANG BUDHKAR MARG, WORLI, MUMBAI - 400025, MAHARASHTRA, INDIA

B42614628

12

10311670

14/10/2011

61,500,000.00

ICICI BANK LIMITED

LANDMARKRACE COURCE CIRCLE, ALKAPURI, BARODA - 390015, GUJARAT, INDIA

B23128630

13

10300401

30/06/2011

260,000,000.00

CANARA BANK

G. E. ROAD, TELIBANDHA, RAIPUR - 492001, CHHATTISGARH, INDIA

B18144451

14

10291505

10/05/2011

500,000,000.00

AXIS BANK LIMITED

JEEVAN BIMA MARG, PANDRI, RAIPUR -
492001, CHHATTISGARH, INDIA

B14748065

15

10277305

27/04/2011 *

1,250,000,000.00

AXIS TRUSTEE SERVICES LIMITED

AXIS HOUSE, 2ND FLOOR, BOMBAY DYEING MILLS COMPOUND, PANDURANG BUDHKAR MARG, WORLI, MUMBAI - 400025, MAHARASHTRA, INDIA

B11831021

16

10237683

09/03/2011 *

250,000,000.00

VIJAYA BANK

INDUSTRIAL FINANCE BRANCH, 2ND FLOOR, NEW EXCELSIOR BUILDING, WALLACE STREET, FORT, MUMBAI - 400001, MAHARASHTRA, INDIA

B07954068

17

10210040

09/02/2013 *

200,000,000.00

YES BANK LIMITED

9TH FLOOR, NEHRU CENTRE, DISCOVERY OF INDIA, DR. ANNIE BESANT ROAD, WORLI, MUMBAI - 400018, MAHARASHTRA, INDIA

B69745016

18

10173324

05/07/2011 *

500,000,000.00

AXIS BANK LIMITED

PANDRI BRANCH, JEEVAN BIMA MARG, PANDRI, RAIPUR - 492001, CHHATTISGARH, INDIA

B17464496

19

10140291

10/02/2009

486,000,000.00

BANK OF BARODA

WHOLE SALE BANKING BRANCH, K.K. ROAD, MOUDHAPARA, MAHAVIR GOSHALA COMPLEX, RAIPUR - 492001, CHHATTISGARH, INDIA

A55930945

20

10116949

30/07/2008

200,000,000.00

BANK OF BARODA

CORPORATE FINANCIAL SERVICES, FORT BRANCH, 4TH FLOOR, 10/12, MUMBAI BRANCH, FORT, MUMBAI - 400023, MAHARASHTRA, INDIA

A43412576

21

10113356

05/07/2011 *

350,000,000.00

AXIS BANK LIMITED

PANDRI BRANCH, JEEVAN BIMA MARG, PANDRI, RAIPUR - 492001, CHHATTISGARH, INDIA

B17451196

22

10099576

25/03/2008

200,000,000.00

CANARA BANK

TELIBANDHA BRANCH, G. E. ROAD, RAIPUR - 492001, CHHATTISGARH, INDIA

A35842194

23

10095876

05/07/2011 *

200,000,000.00

AXIS BANK LIMITED

PANDRI BRANCH, JEEVAN BIMA MARG, PANDRI, RAIPUR - 492001, CHHATTISGARH, INDIA

B17465337

24

10071099

19/03/2013 *

4,130,000,000.00

CANARA BANK

PRIME CORPORATE BRANCH-II, VERMA CHAMBERS, 2ND FLOOR, HOMJI STREET, FORT, MUMBAI, MAHARASHTRA - 400001, INDIA

B72313737

25

10055122

24/05/2007

207,500,000.00

STATE BANK OF INDIA

COMMERCIAL BRANCH, BYRON BAZAR, RAIPUR - 492001, CHHATTISGARH, INDIA

A16712705

26

10007046

28/06/2006 *

385,000,000.00

BANK OF BARODA

CORPORATE FINANCIAL SERVICES, FORT BRANCH, 4TH FLOOR, 10/12, MUMBAI SAMACHAR MARG, FORT, MUMBAI - 400023, MAHARASHTRA, INDIA

A01913110

27

90204363

16/10/2007 *

210,000,000.00

AXIS BANK LIMITED

PANDRI BRANCH, JEEVAN BIMA MARG, PANDRI, RAIPUR - 492001, CHHATTISGARH, INDIA

A25681479

28

90206166

24/05/2007 *

250,500,000.00

CANARA BANK

G. E. ROAD BRANCH, TELIBANDHA, RAIPUR - 492001, CHHATTISGARH, INDIA

A16507873

29

90209592

24/03/2009 *

68,200,000.00

BANK OF BARODA

WHOLESALE BANKING BRANCH, K. K. ROAD, MOUDHAPARA, MAHAVIR GAUSHALA COMPLEX, RAIPUR - 492001, CHHATTISGARH, INDIA

A59020222

30

90208992

20/03/2013 *

13,754,100,000.00

CANARA BANK

PRIME CORPORATE BRANCH-II, VERMA CHAMBERS, 2ND FLOOR, HOMJI STREET, FORT, MUMBAI - 400001, MAHARASHTRA, INDIA

B72149974

31

90208970

03/10/2008 *

868,000,000.00

STATE BANK OF INDIA

COMMERCIAL BRANCH, 2ND FLOOR, RAVI BHAVAN, RAIPUR - 492001, CHHATTISGARH, INDIA

A47559745

32

90203676

24/03/2012 *

239,200,000.00

ORIENTAL BANK OF COMMERCE

MAIN BRANCH, RAJ TOWER, TATYAPARA, G. E. ROAD, RAIPUR - 492001, CHHATTISGARH, INDIA

B37433711

 

* Date of charge modification

 

 

UNSECURED LOANS

 

Unsecured Loans

31.03.2012

31.03.2011

 

 

(Rs. In Millions)

SHORT-TERM BORROWINGS

 

 

Interest free loan and advances from related parties repayable on demand

55.101

166.942

Interest free loan and advances from subsidiary companies repayable on demand

245.000

197.600

Total

300.101

364.542

 

 

CORPORATE INFORMATION

 

Subject is a public company domiciled in India and incorporated under the provisions of the Companies Act, 1956. Its shares are listed on two stock exchanges in India. The Company is mainly engaged in generation of electricity, Iron ore mining and manufacturing of Iron Ore Pellets, Sponge Iron, Steel Billets, Wire Rods, H.B. Wire and Ferro Alloys.

 

 

REVIEW OF PERFORMANCE

 

The financial year 2011-12 was a challenging year due to slow down in Indian Industrial production and infrastructure growth in India on account of high inflation, political scenario and ongoing European debt crisis. Despite these constraints and the challenging environment, the Company has performed reasonably and highlights of the performance are as under:

 

·         Gross sales Revenue increased by 86% to Rs. 19195.300 Millions from Rs. 10313.100 Millions recorded in previous year.

EBIDTA Margins increased to Rs. 2377.500 Millions from Rs. 1963.600 Millions during previous year.

PBT Increased to Rs. 998.300 Millions from Rs. 892.800 Millions.

 

During the year the Company has recorded overall volume growth in production across the divisions due to constant efforts made by the Company to improve operating efficiency, which has resulted into increase in gross sales revenue. The operating margin have declined during the year due to higher input cost on account of lower production volume from captive iron ore mines as compared to previous year on account of extended monsoon and other factors beyond the control of the Company. The operations of the captive iron ore mines have considerably improved during the last quarter of the fiscal year. The Company is confident of improving the operating margin during current year.

 

 

EXPANSION/ NEW PROJECTS

 

PELLET PLANT

 

The Company's second pellet plant with an installed capacity of 1,200,000 TPA is under implementation and the project is expected to be commissioned in Q2 FY 2014. The plant shall source the iron ore fines from the existing captive iron ore mines in Chhattisgarh and also partial procurement from market.

 

 

SOLAR POWER PLANT

 

The Company is setting up 50 MW solar thermal power project at cost of Rs. 8000.000 Millions approx, under Jawaharlal Nehru National Solar Mission of Government of India through a SPV Company Godawari Green Energy Limited (GGEL), which is a wholly owned subsidiary of the Company. The project is expected to be commissioned by April, 2013 and the implementation of the project is going on as per schedules. The Company has tied up the entire debt requirement of Rs. 5690.000 Millions from banks and has contributed equity capital of Rs. 1210.000 Millions in the SPV.

 

 

FINANCE

 

During the year, the Company has raised funds of Rs. 800.000 Millions by way of private placement of Non Convertible Debentures to augment the funds requirement for normal capital expenditure and long term working capital. The Company has been able to maintain a comfortable debt equity ratio of 1:0.89 as on 31st March, 2012.

 

The Company has also tied up funding of Rs. 3000.000 Millions for financing the expansion in iron ore pelletisation capacity from 600000 TPA to 1800000 TPA by setting up new Iron Ore Pellet plant.

 

 

MANAGEMENT DISCUSSION AND ANALYSIS

 

GLOBAL ECONOMIC SCENARIO

 

The year 2011, experienced a turbulent phase, engendered by political and economic turmoil, beginning from unrest in Middle East and North Africa (MENA), to tsunami in Japan and the reigning sovereign debt crisis in Eurozone. Also, there are indications of slow growth recovery led by the improving economic activities in USA and pursuance of more effective policies in the Eurozone. The global economy is entering a new phase, with power gradually shifting from developed economies to developing nations, prompted by advanceent in technology and higher competency.

 

IMF foresees the global economic growth to hover around 3.3% in 2012, driven by emerging markets. The advanced markets are likely to witness 1.9% growth in 2012 from 1.6% in 2011, while the emerging markets are anticipated to grow at 5.4% in 2012, compared to 6.1% in 2011

 

 

INDIAN ECONOMIC SCENARIO

 

On the backdrop of somber global economic activity, India's growth was also dragged by various domestic issues like high inflationary pressures, infrastructure constraints, and political instability. The country's GDP stood at 6.5% in 2011-12. The economy is expected to restrict to the growth of 6.5% over the next year, due to subdued domestic investment, with WPI inflation likely to be greater than 7% for the year 2012-13.

 

 

STEEL INDUSTRY

 

OVERVIEW

 

The Indian steel industry plays a pivotal role in the progress of the economy. India has acquired a Central position on the global steel map, ranking as the fourth largest producer of steel in the global front, following China, Japan, North America, and Russia. Steel is one of the eight core infrastructure industries that have a combined weight of 38% in the index of industrial production. Of the total domestic steel consumption, majority goes into construction segment followed by engineering sector, steel tubes and automobile industry.

 

 

SNAP-SHOT OF THE INDIAN STEEL INDUSTRY

 

·         The major steel consuming sectors include construction (~49%), capital goods (~15%), and automobiles (~4%).

India's total steel consumption increased to 67.8 million tonnes in 2011 against 64.9 million tons in 2010.

India's per capita consumption has increased from 25% in the last five years to 57 kgs in 2011 against 45.8 kgs in 2007.

The total production increased to 73.42 million tones in 2011, against 68.62 million tones in 2010.

India is expected to add 36.5million tons of crude steel capacity by end FY14. It is expected that from a net importer of steel till now it would turn to be a marginal net exporter by FY13.

The production of steel in the Eleventh Five Year Plan (FYP) period (over the first four years of the plan) grew by 5.8% and consumption grew by 8.8% in the same period.

The output of the Indian steel industry is expected to reach 113 million tonnes by the end of the 12th Five-Year Plan.

 

 

CHALLENGES IN THE STEEL INDUSTRY

 

Macro-economic concerns: The overall slowdown in the economy has dampened the growth of infrastructure and construction activities of country, which has adversely affected the demand for steel. Stagnating demand, domestic oversupply and falling prices in the last four years have hit Indian steel makers.

 

Availability of land: The availability of free land with environmental clearance is a long drawn affair, which has hindered the viability of many green field steel projects.

 

Availability of raw material: Iron-ore and coal are the major raw materials for the production of steel. However India is facing a severe shortage in coal production as the government is not able to meet the required demand. Iron ore on the other hand is experiencing a slew of mining issues in the country.

 

Capital Intensive: The steel being a capital intensive industry, has to undertake high CAPEX plans. Additionally, with an increase in interest rates there is a huge burden on the balance sheet of the steel makers. The Indian steel makers pay an average interest of 14% on term loans compared to 2.4% in Japan and 6.4% in USA.

 

Other factors: The other challenges faced by the sector include poor quality of basic infrastructure like roads, ports and so on; poor technology and limited access of domestic producers to good quality iron ores which are normally earmarked for exports.

 

 

DEMAND DRIVERS

 

Growth in infrastructure: The government has allocated $ 1 trillion for the development of the infrastructure in the Twelfth FYP. With growth in infrastructure and higher per capita penetration would fuel up the demand for steel (on an average per capita steel consumption in India is 55kgs against world average of 200kgs).

 

Increasing investments: Steel producers have signed 22 MOUs with state government for a capacity addition of 275.7 million tonnes by 2020. Foreign investment of nearly $ 40bn has been committed to the steel sector.

 

Strategic alliance: Several global players have entered in JV's with Indian steel makers to explore the Indian market, the cutting edge technology of the global giants will lead to cost efficiencies and economies of scale.

 

Automotive sector: The automobile sector is estimated to grow to USD 146 bn by 2016, with increase in automotive demand the demand for steel is also significantly increase.

 

Growth in Airports: Development of Tier-II city airports will sustain consumption growth of steel which is expected to increase by more than 20% over the next few years.

 

Growth in oil and gas sector: The govt. aims at increasing the pipeline network of liquid fuel from 16,800 km currently to 22,000 km in 2014. This will create a huge demand for steel.

 

Growth in power sector: The govt. plans to add 1,00,000 MW of power capacity by the end of the Twelfth Five Year plan period which would lead to substantial growth in the steel sector.

 

 

GOVERNMENT INITIATIVES

 

·         Proposal to reduce basic customs duty on plant and machinery imported for setting up or substantial expansion of iron ore pellet plants or iron-ore beneficiation plants from 7.5% to 2.5%.

Proposed to reduce basic customs duty on coating material for manufacture of electrical steel from 7.5% to 5% and reduce the duty on Nickel ore and concentrate and nickel oxide/ hydroxide from 2.5% or 7.5% to Nil

100% foreign direct investment (FDI) through the automatic route is allowed in the sector

Inviting bids from the private sector, large infrastructure projects in Public-Private Partnership (PPP) mode are being formed

Government of India has formed the National Steel Policy (NSP) which would provide faster clearance of large projects through a single window. Additionally, offering necessary support to the development of the industry.

 

 

POWER INDUSTRY

 

OVERVIEW

 

India's power sector plays a significant role in sustaining the growth momentum of the economy. India has added 53,922 MW of power in its Eleventh FYP period ending March, 2012.. It was against a targeted capacity addition of about 62,000 MW (Initial target 78,000 W). Targeted capacity addition in the Twelfth FYP is much higher compared to the previous FYP.

 

 

SNAP-SHOT OF THE INDIAN POWER INDUSTRY

 

·         The total installed capacity stands 201637 MW compared to 1,713 MW in 1950, making India the sixth largest producer globally.

Power generation for the year ending March 2012, grew by 8.05% on a year on year basis to 876 bn units, exceeding its yearly target by 2.5%.

The year FY12, marked the end of the Eleventh Five Year power plan, witnessing the highest ever power addition since independence. Of the 62,000 MW of target addition (earlier the target was 78,700 MW), India achieved a capacity boost of 55,000 MW.

The demand supply gap is narrowing down, from 9% of base deficit in FY 09, it has reduced to 8.5% in FY12.

The demand for power is directly co-related with GDP growth (0.8x). As the GDP growth rate lowers due to unstable economic conditions, which would result in slowdown of the industrial expansion, there would be a subsequent decrease in the demand for power. The capacity addition of 15-20 GW coming in the XIIth plan would increase the supply, hence narrowing the gap between demand and supply.

 

 

GOVERNMENT INITIATIVES

 

Jawaharlal Nehru National Solar Mission: It is a major initiative undertaken by the Ministry of New and Renewable Energy (MNRE), covered under Government of India's National Action Plan on Climate Change (NAPCC). It plans to enable policy framework for deploying 20,000 MW of solar power by 2022. It will be carried out in 3 phases.

 

·         Phase I- up to 2012-13: 1,000 MW

Phase II- 2013-17: 4,000-5,000 MW

Phase III- 2017-2022: 20,000 MW

 

Extension of sunset clause: Government has extended the sunset clause u/s 80IA for power projects that will be commissioned on or before March 31, 2013, will be able to claim 100% deduction of profits for 10 years. Additional 20% depreciation on new plant for the initial year.

 

Fuel supply agreement: Coal India has been advised to sign a fuel supply agreement with power plants which have entered long term PPA's with DISCOMS and would get commissioned on or before March 31, 2015. Counter veiling duty of 1% to Steam coal for a period of two years till March 31, 2014.

 

Rajiv Gandhi Grameen Vidyutikaran Yojana (RGGVY): Under RGGVY, funds are not allocated upfront but are disbursed as per the progress of works. So far, subsidy of Rs. 34753.900 Millions has been disbursed as per the progress.

 

STANDALONE UNAUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED 31ST DECEMBER, 2012

 

S. No.

Particulars

STANDALONE

[Rs. in Millions]

 

 

3 Months ended

9 Months ended

 

 

31.12.2012

30.09.2012

31.12.2012

 

 

Unaudited

1

Income from Operations

 

 

 

 

(a) Net Sales/Income from operations

4398.000

4892.000

14289.100

 

(to) Other operating income

--

--

--

 

Total Income

4398.000

4892.000

14289.100

2

Expenses

 

 

 

 

(a) (Increase)/decrease in stock

(85.100)

55.600

80.200

 

(b) Consumption of raw materials

3086.300

3441.300

9953.700

 

(c) Employees Benefits

121.200

125.700

342.900

 

(d) Depreciation & Amortisation Expenses

131.800

132.900

393.900

 

(e) Other expenditure

738.100

728.700

2051.500

 

Total Expenditure

3992.300

4484.200

12822.200

3

Profit from operations before other incomes, finance cost & exceptional items (1-2 )

405.800

407.800

1467.000

4

Oilier Income

14.900

17.200

44.300

5

Profit from ordinary activities before finance cost & exceptional items ( 3+4 )

420.700

425.000

1511.300

6

Finance Cost

225.100

211.500

656.800

7

Profit after Interest but before exceptional items (5-6)

195.600

213.500

854.500

8

Exceptional items

--

--

--

9

Profit/Loss from operating activities after tax (7-8)

195.600

213.500

854.500

10

Tax expenses

39.200

56.600

184.900

11

Net Profit(+)/loss(-) ordinary activities after tax (9-10)

156.400

150.900

669.600

12

Paid-up equity share capital (face value of Rs. 10/- each)

317.500

317.500

317.500

13

Reserves (excluding revaluation reserve) as per Balance Sheet of pre\ ions accounting year

 

 

 

14

Earnings per share - Basic & Diluted

4.93

4.94

21.09

15

Public share holdings

 

 

 

 

-No. of snares

11500394

11500394

11500394

 

-Percentage of share holding

36.21

36.21

36.21

A

Promoters and promoter group Shareholding a) Pledged/Encumbered

 

 

 

 

-No. of shares

2730000

2730000

2730000

 

-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)

13.48

 

8.60

13.48

 

8.60

13.48

 

8.60

 

a) Non-encumbered

 

 

 

 

-No. of shares

17525853

17525853

17525853

 

-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)

86.52

 

55.19

86.52

 

55.19

86.52

 

55.19

 

 

B

Particulars of Investor Grievances [Nos.]

3 Months ended on 31.12.2012

 

Pending at the Beginning of the quarter

NIL

 

Received during the quarter

3

 

Disposed off during the quarter

3

 

Remaining unresolved at the end of the quarter

Nil

 

[Rs. in Millions]

SEGMENT RESULTS

 

 

 

 

 

 

31.12.2012

30.09.2012

31.12.2012

 

 

Unaudited

1

Total Segment Revenue

 

 

 

 

a. Steel

4278.600

4848.200

14060.700

 

b. Power

483.300

390.000

1261.000

 

Total

4761.900

5238.200

15321.700

 

Less: lnter Segment Revenue

363.900

346.200

1032.600

 

Net Sales

4398.000

4892.000

14289.100

2

Segment Results

 

 

 

 

a. Steel

404.600

376.500

1367.500

 

b. Power

137.300

108.400

395.800

 

Total

541.900

484.900

1763.300

 

Less: Un-Allocable Expenses Net of un-allocable income

121.200

59.900

252.000

 

Less: Interest & Finance Charges

225.100

211.500

656.800

 

Net Profit Before Tax

195.600

213.500

854.500

3

Net Capital Employed

 

 

 

 

a. Steel

5571.700

5456.300

5571.700

 

b, Power

1822.000

1798.900

1822.000

 

Total

7393.700

7255.200

7393.700

 

Add: Un-Allocable Capital

(426.300)

(411.100)

(426.300)

 

Total Capital Employed

 

6967.400

6844.100

6967.400

 

 

Notes:

 

1.       The above results were reviewed by statutory auditors and audit committee of the company and approved by Board of Directors In their meeting held on 09.02.2013.

2.       No provision has been made in respect of mark to market losses of Rs. 20.700 Millions on forex loans, in view of the high volatility in currency market. Due adjustment, if any will be made at the time of year end as per the practice followed by the company consistently.

3.       The implementation of 1.2 MTPA Iron ore Pellet Plant of the company is going as per schedule.

4.       The previous year/period has been regrouped/ rearranged wherever found necessary.

 

 

CONTINGENT LIABILITIES:

 

i)         Counter Guarantees given to banks against Bank guarantees issued by the Company Banker aggregate to Rs.112.600 Millions (Previous Year Rs. 76.300 Millions.)

ii)       Corporate Guarantees issued in favour of bank aggregating to Rs. 453.500 Millions (Previous Year Rs. 453.500 Millions) in respect of financing facilities granted to other body corporate.

iii)      Disputed liability of Rs. 2.732 Millions (Previous Year Rs. 6.827 Millions) on account of Service Tax against which the Company has preferred an appeal.

iv)      Disputed liability of Rs. 37.481 Millions (Previous Year Rs. 34.843 Millions) on account of CENVAT against which the Company has preferred an appeal.

v)        Disputed liability of Rs. 28.757 Millions (Previous Rs. 2.464 Millions) on account of Sales Tax against which the Company has preferred an appeal.

vi)      Disputed liability of Rs. 0.324 Million (Previous Year Rs. 2.926) on account of Income Tax against which the Company has preferred an appeal.

vii)     Disputed energy development cess demanded by the Chief Electrical Inspector, Govt. of Chhattisgarh Rs. 159.600 Millions (Previous Year Rs. 121.200 Millions). The Hon'ble High Court of Chhattisgarh has held the levy of cess as unconstitutional vide its order dated 20th June, 2008. The State Govt. has filed a Special Leave Petition before Hon'ble Supreme Court, which is pending for final disposal.

viii)   Disputed demand of Rs. 75.800 Millions (Previous Year Rs. NIL) from Chhattisgarh State Power Distribution Company Limited relating to cross subsidy on power sold under open access during the financial year 2009-10, the Company has contested the demand and obtained stay from CSERC and expect a favourable decision in favour of company.

ix)     Estimated amount of contracts remaining to be executed on capital accounts Rs. 1699.500 Millions (Previous Year Rs. NIL).

 

FIXED ASSETS:

 

·         Freehold Land

Leasehold Land

Iron Ore Mines

Site and Land Development

Factory Shed and Building

Plant and Machinery

Furniture and Fixtures

Vehicles

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 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 proeeding 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. 64.69

UK Pound

1

Rs. 100.80

Euro

1

Rs. 86.30

 

 

INFORMATION DETAILS

 

Information Gathered by :

PLK

 

 

Report Prepared by :

KVT

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

6

PAID-UP CAPITAL

1~10

6

OPERATING SCALE

1~10

7

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

7

--PROFITABILIRY

1~10

7

--LIQUIDITY

1~10

7

--LEVERAGE

1~10

7

--RESERVES

1~10

7

--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

NO

--AFFILIATION

YES/NO

YES

--LISTED

YES/NO

YES

--OTHER MERIT FACTORS

YES/NO

YES

DEFAULTERS 

 

 

--RBI

YES/NO

NO

--EPF

YES/NO

NO

TOTAL

 

61

 

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.