MIRA INFORM REPORT
|
Report Date : |
02.05.2013 |
IDENTIFICATION DETAILS
|
Name : |
BIRLA CORPORATION LIMITED |
|
|
|
|
Registered
Office : |
9/1, R |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as
on) : |
31.03.2012 |
|
|
|
|
Date of
Incorporation : |
25.08.1919 |
|
|
|
|
Com. Reg. No.: |
21-003334 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs 770.089 Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L01132WB1998PLC003334 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
CALB06945B |
|
|
|
|
Legal Form : |
It is a public limited
liability company. The company’s
shares are listed on the Stock Exchanges. |
|
|
|
|
Line of Business
: |
Manufacture and |
|
|
|
|
No. of Employees
: |
10138 ( Approximately ) |
RATING & COMMENTS
|
MIRA’s Rating : |
A (69) |
|
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 89700000 |
|
|
|
|
Status : |
Good |
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|
|
|
Payment Behaviour : |
Regular |
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|
|
|
Litigation : |
Clear |
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|
|
Comments : |
Subject is a flagship company of M.P. Birla group. It is a well established and reputed company having a good track
record. There appears slight dip in profitability during 2011-2012. However, general financial position is good. Performance capability appears
to be high. Trade relations are reported to be fair. Business is active. Payments
are reported to be regular and as per commitment. In view of strong holdings and expenses promoters the company can be
considered normal 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 – 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 |
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CARE |
|
Rating |
Long term bank facilities : AA+ |
|
Rating Explanation |
Having high degree of safety regarding timely securing in financial obligation
it carry very low credit risk. |
|
Date |
September - 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.
LOCATIONS
|
Registered Office : |
|
|
Tel. No.: |
91-33-22130379/1680 |
|
Fax No.: |
91-33-22482872/7988 |
|
E-Mail : |
investorsgrievance@birlacorp.com gsharma@birlacorp.com |
|
Web Site : |
|
|
|
|
|
Corporate Office : |
1, Shakespeare Sarani (2nd Floor), Kolkata – 700 071, |
|
Tel. No.: |
91-33-6603 3300, 3301, 3002 |
|
Fax No.: |
91-33-2288 4426 |
|
E-Mail : |
|
|
|
|
|
Principal Office : |
Ř Tel. No.: 91-11- 2371 6214/ 6221/ 4014/
4851-55/ 1476/ 5174 Fax No.: 91-11-2371 1611 Email ID:bcldelhi@vsnl.net Ř Industry House,
150, Churchgate Reclamation, Mumbai - 400 020 Tel. No.: 91-22-2204 8467/ 8468/ 5346/ 91-22-2204 3615 Fax No.: 91-22-2204 3615 E- Mail : bclbom@birlacorp.com
Bcl_bby@vsnl.com |
|
|
|
|
Plants : |
Ř P.O. Birla
Vikas, Santa – 485 005, Tel. No.: 91-7672 41 2000, 25 7844-47, 25
8002-03, 40 8083 Gram :
Cement Fax No.: 91-7672 257456/ 257576 Email ID:admin@satnacement.com
Ř Madhavnagar,
P.O. Cement Factory, Chanderia – 312 021, Tel. No.: 91-1472 25 6601-08 91-22-2204 3615 Gram :
Cement Fax No.: 91-1472 25 6609 Email ID: bclccw@sancharnet.in Ř Tel. No.: 91-343 645 4051, 25 7844-47, 25
8002-03, 40 8083 Gram :
Cement Fax No.: 91-343 258 5290 Email ID: bcldcw@sancharnet.in Ř Plot No. D/9 to
D/15, UPSIDC Industrial Area, Phase II, Tel. No.: 91-535 211 7114-7116, 221 7118 Fax No.: 91-535 221 7239 Email ID: admin@rblcement.com Ř Birlapur – 743
318, 24 Parganas(S), West Tel. No.: 91-33 2420 9121-233 Gram :
Jutweavar Fax No.: 91-33 2420 9828/ 9688/ 8179/ 9006 Email ID: bjm_birlapur@hotmail.com Ř 102, Tel. No.: 91-33 2320 9241/ 9242 |
DIRECTORS
As on 31.03.2012
|
Name : |
Mr. Harsh V. Lodha |
|
Designation : |
Chairman |
|
Date of Birth : |
23.04.1996 |
|
Qualification : |
Chartered Accountant |
|
|
|
|
Name : |
Mr. Pracheta Majumdar |
|
Designation : |
Director |
|
Qualification : |
Mechanical Engineer |
|
|
|
|
Name : |
Mr. Vikram Swarup |
|
Designation : |
Director |
|
Date of Birth : |
16.09.1948 |
|
Qualification : |
Mechanical Engineer |
|
|
|
|
Name : |
Mr. Anand Bordia |
|
Designation : |
Chairman |
|
Qualification : |
M.A. |
|
|
|
|
Name : |
Mr. B.B Tandon |
|
Designation : |
Director |
|
Date of Birth : |
30.06.1941 |
|
Qualification : |
I.A.S. |
|
|
|
|
Name : |
Mr. D.N. Ghose |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Deepak Nayyar |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. M.K. Sharma |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. B.R. Nahar |
|
Designation : |
Executive Director and Chief
Executive Officer |
|
Date of Birth/Age : |
60 Years |
|
Qualification : |
B.Com, FCA |
|
Particulars of last Employment held : |
Essar Investment Limited,
Mumbai. (Executive Director 3 years) |
|
|
|
KEY EXECUTIVES
|
Name : |
Mr. P. K. Chand |
|
Designation : |
Chief Financial
Officer |
|
|
|
|
Name : |
Mr. Girish Sharma |
|
Designation : |
Company Secretary |
|
|
|
|
|
|
|
SENIOR MANAGEMENT TEAM : |
|
|
Name : |
Mr. G. Jayaram |
|
Designation : |
Executive President |
|
|
|
|
Name : |
Mr. P.S. Marwah |
|
Designation : |
President Santa Cement Works Birla Vilas Works Reabareli Cement Works Vidhyachal Steel Foundary |
|
|
|
|
Name : |
Mr. V.K. Hamirwasia |
|
Designation : |
President Birla Cement works Chanderia Cement Works |
|
|
|
|
Name : |
Mr. P.C. Mathur |
|
Designation : |
Sr. Joint President Durga Hitech Cement |
|
|
|
|
Name : |
Mr. K.K. Sharma |
|
Designation : |
President Management Audit |
|
|
|
|
Name : |
Dr. D. Ghosh |
|
Designation : |
Sr. Joint President New Project and R and D |
|
|
|
|
Name : |
Mr. G.R. Verma |
|
Designation : |
Joint President Birla Jute Mills |
|
|
|
SHAREHOLDING PATTERN
As on 31.03.2013
|
Names of Shareholders |
No.
of Shares |
Percentage
of Holding |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
0 |
0.00 |
|
|
19624413 |
48.54 |
|
|
10796008 |
14.35 |
|
|
10796008 |
14.35 |
|
|
30420421 |
62.90 |
|
|
|
|
|
Total shareholding of Promoter and Promoter Group (A) |
|
|
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
8286165 |
10.76 |
|
|
6930 |
0.03 |
|
|
3953342 |
5.13 |
|
|
3797901 |
4.93 |
|
|
16044338 |
20.86 |
|
|
|
|
|
|
7701923 |
10.02 |
|
|
|
|
|
|
2077430 |
3.54 |
|
|
1234095 |
1.68 |
|
|
738426 |
0.00 |
|
|
86173 |
0.15 |
|
|
652253 |
0.85 |
|
|
11751874 |
16.24 |
|
Total Public shareholding (B) |
27796212 |
37.10 |
|
Total (A)+(B) |
58216633 |
100.00 |
|
(C) Shares held by Custodians and against which Depository
Receipts have been issued |
0 |
0.00 |
|
Total (A)+(B)+(C) |
58216633 |
0.00 |
Note :
1.
For determining public
shareholding for the purpose of Clause 40A.
2.
For definitions of promoter
and promoter Group, refer to clause 40A.
3.
Public shareholding
4.
BUSINESS DETAILS
|
Line of Business : |
Manufacture and |
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Products : |
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Exports : |
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Countries : |
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GENERAL INFORMATION
|
No. of Employees : |
10138 ( Approximately ) |
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Bankers : |
·
State Bank of ·
Kolkata, West |
||||||||||||||||||||||||||||||
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|
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Facilities : |
Security
- Debentures
are to be secured by first charge on the movable and immovable Fixed
assets of the Company's Cement Division, ranking pari-passu with the term
lender. Term
Loans are .secured by first charge on the movable and immovable assets Pertaining
to Company's Cement Units at Satna (Madhya Pradesh) and Chanderia
(Rajasthan), ranking pari-passu with
Debentures and other term lenders. Foreign currency loan from bank are
secured by first on the movable and immovable fiwed assets of the company’s
Cement Units at Chanderia (Rajshtan), ranking pari-passu with debenture
holders and other term lenders. Working Capital Borrowings are secured by hypothecation of
Current Assets, viz. Raw Materials, Stock-in-Trade, Consumable Stores and
Book Debts, both present and future, and further by way of second charge on
movable and immovable fixed assets of the Company's cement division. Collateralized borrowing and lending obligation is secured
by deposit of government securities. |
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
H. P. Khandelwal and
Company Chartered Accountants |
|
Address : |
Kolkata – 700 100, |
|
|
|
|
Subsidiaries : |
|
CAPITAL STRUCTURE
As on 31.03.2012
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
90000000 |
Ordinary Shares |
Rs. 10/-each |
Rs. 900.000 millions |
|
1000000 |
Preference Shares |
Rs. 100/-each |
Rs. 100.000 millions |
|
|
Total |
|
Rs. 1000.000 millions |
Issued Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
77013416 |
Ordinary Shares |
Rs. 10/-each |
Rs. 770.134 millions |
Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
77005347 |
Ordinary Shares |
Rs. 10/-each |
Rs. 770.053 millions |
|
Add: |
Forfeited Ordinary Shares
(amount originally paid-up) |
|
Rs. 0.036 million |
|
|
Total |
|
Rs. 770.089 millions |
Note:
a)
There has been no change/movements in the number of
shares outstanding at the beginning and at the end of the reporting period.
b)
The company has only one class of issued shares
i.e. Ordinary shares having par value of Rs. 10/- per share. Each holder of
Ordinary shares is entitled to one vote per share and equal right for dividend.
The dividend proposed by the Board of Directors is subject to the approval of
shareholders in the ensuring Annual General Meeting. Expect in case of interim
dividend, in the event of liquidation, the ordinary shareholders are eligible
to receive the remaining assets of the company after payment of all preferential
amounts, in proportion to their shareholding.
c)
The company does not have any holding
company/ultimate Holding company.
d)
Details of shareholders holding more than 5% shares
in the company
|
Ordinary Shares
of Rs. 10 each fully paid |
As on 31.03.2012 No.of shares |
As on 31.03.2011 No.of shares |
|
|
71,59,460 |
71,59,460 |
|
Vindhya Telelinks Limited |
63,90,243 |
63,90,243 |
|
August Agents Limited |
60,15,912 |
60,15,912 |
|
Insilco Agents Limited |
60,04,080 |
60,04,080 |
|
Laneseda Agents Limited |
59,94,680 |
59,94,680 |
|
The Panjab Produce and Treding company Private Limited |
45,20,572 |
45,20,572 |
|
Life Insurance Corporation of |
39,48,117 |
39,48,117 |
e)
No Ordinary shares have been reserved for issue
under options and contracts/commitments for the sale of shares/disinvestment as
at the Balance sheet date.
f)
No share have been allotted or has been bought back
by the company during the period of 5 years preceding the date as at which
balance sheet is prepared.
g)
No securities convertible into Equity/Preference
shares issued by the company during the year.
h)
No calls are unpaid by any Director or Officer of
the Company during the year.
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 |
770.089 |
770.089 |
770.089 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
21663.708 |
19809.071 |
17142.169 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
22433.797 |
20579.160 |
17912.258 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
9226.203 |
7966.043 |
5181.958 |
|
|
2] Unsecured Loans |
2017.131 |
1410.847 |
1909.915 |
|
|
TOTAL BORROWING |
11243.334 |
9376.890 |
7091.873 |
|
|
DEFERRED TAX LIABILITIES |
1532.487 |
1125.166 |
795.103 |
|
|
|
|
|
|
|
|
TOTAL |
35209.618 |
31081.216 |
25799.234 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
13482.304 |
9752.940 |
6986.841 |
|
|
Capital work-in-progress |
5139.261 |
4586.381 |
3277.669 |
|
|
|
|
|
|
|
|
INVESTMENT |
10448.100 |
11693.264 |
11416.522 |
|
|
DEFERRED TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
4170.971
|
2837.132
|
3596.047 |
|
|
Sundry Debtors |
372.452
|
221.457
|
440.720 |
|
|
Cash & Bank Balances |
4385.682
|
3392.747
|
3433.823 |
|
|
Other Current Assets |
1005.230
|
0.000
|
1019.311 |
|
|
Loans & Advances |
1592.022
|
1966.235
|
1507.918 |
|
Total
Current Assets |
11526.357
|
9997.819 |
8417.571
|
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
1129.375
|
2634.920
|
1025.566 |
|
|
Other Current Liabilities |
3614.931
|
1014.983
|
3339.415 |
|
|
Provisions |
642.098
|
649.466
|
584.207 |
|
Total
Current Liabilities |
5386.404
|
4949.188 |
4299.369
|
|
|
Net Current Assets |
6139.953
|
5048.631 |
4118.202
|
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
35209.618 |
31081.216 |
25799.234 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
22868.986 |
21538.366 |
21570.278 |
|
|
|
Other Income |
1261.576 |
1070.715 |
1383.150 |
|
|
|
TOTAL (A) |
24130.562 |
22609.081 |
22953.428 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of material consumed |
3665.291 |
3929.614 |
|
|
|
|
Purchase of trade goods |
11.775 |
0.607 |
|
|
|
|
(increase)/decrease in inventories if finished goods, work-in-progress
and traded goods |
403.703 |
(360.356) |
|
|
|
|
Employee benefit expenses |
2133.704 |
1920.897 |
|
|
|
|
Other expenses |
13130.513 |
11568.146 |
|
|
|
|
TOTAL (B) |
19344.986 |
17058.908 |
14519.204 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
4785.576 |
5550.173 |
8434.224 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
525.075 |
526.266 |
269.723 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
4260.501 |
5023.907 |
8164.501 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
800.029 |
648.332 |
556.365 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
3460.472 |
4375.575 |
7608.136 |
|
|
|
|
|
|
|
|
|
Less |
TAX (I) |
1068.419 |
1176.816 |
2036.327 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-I) (J) |
2392.053 |
3198.759 |
5571.809 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
3307.737 |
1908.978 |
1009.183 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Debenture Redemption Reserve |
165.000 |
165.000 |
132.500 |
|
|
|
Interim dividend |
192.500 |
192.500 |
192.513 |
|
|
|
Corporate Divided Tax on interim Dividend |
31.200 |
32.000 |
32.718 |
|
|
|
Proposed Final dividend |
269.500 |
269.500 |
269.519 |
|
|
|
Corporate Dividend Tax on Proposed Final
Dividend |
43.700 |
43.700 |
44.764 |
|
|
|
General reserve |
2500.000 |
2500.000 |
4000.000 |
|
|
BALANCE CARRIED
TO THE B/S |
5699.790 |
3307.737 |
1908.978 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
695.303 |
990.556 |
710.868 |
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
341.984 |
345.814 |
732.957 |
|
|
|
Stores & Spares |
126.651 |
196.106 |
73.409 |
|
|
|
Capital Goods |
682.218 |
1042.471 |
1191.884 |
|
|
|
Coal |
0.000 |
131.580 |
0.000 |
|
|
TOTAL IMPORT |
1150.853 |
1715.971 |
1998.250 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
32.06 |
41.54 |
NA |
|
QUARTERLY /
SUMMARISED RESULTS
|
PARTICULARS |
30.06.2012 (Unaudited) |
30.09.2012 (Unaudited) |
31.12.2012 (Unaudited) |
|
|
1st
Quarter |
2nd Quarter |
3rd Quarter |
|
Net sales |
6682.100 |
6361.200 |
6206.000 |
|
Other income |
243.900 |
340.400 |
189.700 |
|
Total Income |
6926.000 |
6701.600 |
6395.700 |
|
Total Expenditure |
5322.100 |
5253.100 |
5611.900 |
|
Profit before interest, depreciation and
tax |
1603.900 |
1448.500 |
783.800 |
|
Interest |
237.200 |
140.700 |
171.300 |
|
Profit before depreciation and tax |
1366.700 |
1307.800 |
612.500 |
|
Depreciation |
234.900 |
251.800 |
284.800 |
|
Profit before tax |
1131.800 |
1056.000 |
327.700 |
|
Tax |
284.400 |
253.600 |
5.600 |
|
Profit after tax |
847.400 |
802.400 |
322.100 |
|
Extraordinary items |
0.000 |
0.000 |
0.000 |
|
Prior period expenses |
0.000 |
0.000 |
0.000 |
|
Other adjustments |
0.000 |
0.000 |
0.000 |
|
Net Profit |
847.400 |
802.400 |
322.100 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
PAT / Total Income |
(%) |
9.91
|
14.15 |
24.27
|
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
14.34
|
19.35 |
33.15
|
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
13.84
|
22.15 |
49.39
|
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.15
|
0.21 |
0.42
|
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt /Networth) |
|
0.50
|
0.46 |
0.36
|
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
2.14
|
2.02 |
2.46
|
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 |
No |
|
10] |
Designation of contact
person |
No |
|
11] |
Turnover of firm for last
three years |
Yes |
|
12] |
Profitability for last
three years |
Yes |
|
13] |
Reasons for variation
<> 20% |
--------------------- |
|
14] |
Estimation for coming
financial year |
No |
|
15] |
Capital in the business |
Yes |
|
16] |
Details of sister
concerns |
Yes |
|
17] |
Major suppliers |
No |
|
18] |
Major customers |
No |
|
19] |
Payments terms |
No |
|
20] |
Export / Import details
(if applicable) |
No |
|
21] |
Market information |
---------------------- |
|
22] |
Litigations that the firm
/ promoter 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 |
No |
|
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 |
UNSECURED LOAN:
|
Particulars |
As on 31.03.2012 Rs. in Millions |
As on 31.03.2011 Rs. in Millions |
|
Term Loan |
0.000 |
11.034 |
|
Working
capital Borrowing |
816.521 |
560.368 |
|
Staff
and Other Deposits |
118.200 |
153.658 |
|
Other
loan and advances |
1082.410 |
685.787 |
|
Total |
2017.131 |
1410.847 |
HIGHLIGHTS OF PERFORMANCE/EVENTS
- The production of
clinker from the 1.2 million tons brown field cement capacity expansion at
Chanderia commenced during the year.
- The Company has
introduced a premium Portland Slag Cement brand, Birla Samrat Unique.
- The production
of blended Cement vis-a-vis total Cement production was highest ever at 89.08%
(5.26 million tons).
- The Company is
actively and financially supporting the establishment of the
- Implementation
of the ERP system in all the cement units of the Company is progressing well
and the same is likely to be implemented in the second quarter of the financial
year 2012-13.
OTHER DIVISIONS :
The Vindhyachal
Steel Foundry produces Iron and Steel Castings primarily for internal
consumption. The total production of casting during the year was 1393 tons as
against 1367 tons in the previous year.
The performance of
Auto Trim Division has been adversely affected on account of lack of orders
from the original equipment manufacturers.
The division
produced 8952 pcs. of door trims as
compared to 21511 pcs. of door trims in the previous year.
Birla Vinoleum
Unit of the Company continues to be under Lay-off on account of lack of demand
of the product.
EXPANSION AND MODERNISATION
During the year,
the Company has taken up several projects and capacity enhancement programmes
to maintain its market position in the industry besides focusing on various
other efficiency improvements and pro-environment efforts.
CEMENT DIVISION
At Chanderia, the
first phase of the expansion to enhance the production capacity by 1.2 Million
Tons Per Annum (MTPA) brown field Project has been commissioned. The new kiln
was lit up on 14th March, 2012 and the first tranche of clinker was
manufactured on 17th March, 2012. During the second phase the production
capacity will be enhanced to2.7 MTPA.
The Cement Mill modification programme at Satna and Chanderia is also
progressing satisfactorily and is expected to be completed in the first quarter
of financial year 2012-13. Work for expansion of grinding unit capacity at
Raebareli by 0.12 MTPA is going on satisfactorily and the same is expected to
be commissioned by November, 2012. To take advantage of substantial Portland
Pozzolana Cement (PPC) market in northern
0.5 MTPA capacity
Split Grinding unit at
annual capacity of
cement will be 9.3 million tons which will get enhanced to 10.8 million tons on
completion of the second phase of expansion at Chanderia from 1.2 to 2.7 MTPA.
At Satna,
installation of Coal Washery is in an advanced stage and is likely to be
completed by the end of October, 2012. The Washery once installed would help in
maintaining the quality of coal required for cement production on a sustained
basis.
The Company is
planning to install 35 MW Thermal Power Plant at Satna and 50 MW Thermal Power
Plant at Chanderia for which necessary steps are being taken for obtaining
approval for pollution and other clearances from the concerned authorities.
From a longer term
perspective, it is imperative that the Company develops alternative fuel
sources. In pursuance of the above objective, the Company has implemented Waste
Heat Recovery System (WHRS) at Satna and Chanderia wherein the waste hot gases
coming out of the pre-heater and clinker cooler are used to generate
substantial power.
In view of the
ever-increasing cost of the traditional energy sources, plans are afoot to
develop other renewable energy sources for power including solar energy. The
Company is also exploring the possibility of producing power through industrial
and agricultural waste materials. This would also enable the Company to fulfill
the Renewable Power Obligation (RPO), recently introduced by many states across
the country. With a view to fulfill the Renewable Power Obligation (RPO), it is
proposed to install a 2.5 MW Solar Power project at Satna and a
1.5 MW Biomass Gasifier
project each at Satna, Chanderia and
The Company was
allotted the Bikram Coal Block in Madhya Pradesh and administrative approval
for mining lease has been granted by the Union Ministry of Coal. The forest and
environmental clearances are being followed up.
The M. P
Government had recommended to the Union Ministry of Mines allotment of mining
lease of about 2,130 hectares in Satna district to Talavadi Cements Limited, a
subsidiary of Birla Corporation Limited. The recommendation was challenged by
various parties in the Mines Tribunal and in Jabalpur High Court. All the
petitions have since been dismissed except one before the Tribunal and one
before the High Court. The Hon''ble High Court, in an interim order passed
recently, has held that appropriate Government can execute the mining lease in
favour of the Company, subject to the final order. The Union Ministry of Mines
has conveyed relaxation of Section 6(1)(b) of the MMDR Act for the grant of the
mining lease (as required in case of holding of mining
lease in excess of
1000 hectares).
The Company had
signed an MoU with the Assam Minerals Development Corporation, a Government of
Assam Undertaking, to set up one-million ton
Implementation of
the ERP system in all the cement units of the Company is progressing well and
the same is likely to be implemented in the second quarter of the financial
year 2012-13. The ERP system will introduce best practices and improve the
overall efficiency of theCompany by augmenting its information technology
capabilities.
JUTE DIVISION
Investments have
been planned in the Division to acquire latest machineries for improving
productivity and efficiency in the operations.
AWARDS & RECOGNITIONss
Quality Circle
team, namely "Pratigya", from our Satna Unit participated in
The Company''s
unit at Chanderia received recognitions for ''Best Improvement in Thermal
Energy Performance'' from NCB for Chanderia Cement Works and the ''Second Best
Environmental Excellence in Plant Operation'' from NCB for Birla Cement Works for
the year 2009-10. The Unit has also received ''Rajasthan Energy Conservation
Award'' for the year 2011 for being the Second Best in Cement Industries from
Rajasthan Renewable Energy Conservation Ltd, Govt. of Rajasthan and ''Best Employer - 2010'' award
for Large Scale Industry by
Employers''
Association of Rajasthan, Jaipur.
At
UNAUDITED FINANCIAL RESULTS FOR THE THREE MONTHA AND NINE MONTHS
ENDED 31ST DECEMBER 2012
(Rs. In Millions)
|
Particulars |
Quarter Ended ( Unaudited) |
Nine Month Ended ( Unaudited) |
|
|
|
31.12.2012 |
30.09.2012 |
31.12.2012 |
|
1.
Income form operations |
|
|
|
|
a) Net sales/ Income from operation (net of excise duty) |
6122.500 |
6274.400 |
18980.100 |
|
b) Other operating income |
80.500 |
86.800 |
269.200 |
|
Total
income from Operations(net) |
6206.000 |
6361.200 |
19249.300 |
|
2.Expenditure |
|
|
|
|
a) Cost of material consumed |
1372.600 |
1173.800 |
3663.100 |
|
b) Purchases of stock in trade |
8.200 |
36.800 |
45.000 |
|
c) Changes in inventories of finished goods,
work-in-progress and stock-in-trade |
(273.100) |
(288.300) |
(797.400) |
|
d) Employees benefit expenses |
546.400 |
485.800 |
1468.500 |
|
e) Depreciation and amortization expenses |
284.800 |
215.800 |
771.500 |
|
e) Power and Fuel |
1537.500 |
1570.600 |
4630.00 |
|
f) Transport and Forwarding Expenses |
1103.200 |
1061.600 |
3256.800 |
|
g) stores Spare Parts and Packaging Material |
536.300 |
491.000 |
1496.200 |
|
f) Other expenditure |
780.800 |
641.200 |
2344.300 |
|
Total expenses |
5896.700 |
5424.300 |
16878.000 |
|
3. Profit from operations before other income and
financial costs |
309.300 |
936.900 |
2371.300 |
|
4. Other income |
189.700 |
259.800 |
693.400 |
|
5. Profit from ordinary activities before finance costs |
499.000 |
1196.700 |
3064.700 |
|
6. Finance costs |
171.300 |
140.700 |
549.200 |
|
7. Profit from ordinary activities before tax |
327.700 |
1056.000 |
2515.500 |
|
8. Tax expenses |
5.600 |
253.600 |
543.600 |
|
9.
Net profit for the period |
322.100 |
802.400 |
1971.900 |
|
10. Paid up equity share capital (Face value of Rs.10/-
per share) |
770.100 |
770.100 |
770.100 |
|
11.Reserves excluding revaluation reserves |
|
|
|
|
12. Basic and diluted Earning per share for the
period |
0.418 |
1.042 |
2.561 |
|
|
|
|
|
|
PART-II |
|
|
|
|
A. Particulars of shareholding |
|
|
|
|
1. Public Shareholding |
|
|
|
|
- Number of shares |
28571156 |
28571156 |
28571156 |
|
- Percentage of shareholding |
37.10% |
37.10% |
37.10% |
|
2. Promoters and Promoters group Shareholding- |
|
|
|
|
a) Pledged /Encumbered |
|
|
|
|
Number of shares |
Nil |
Nil |
Nil |
|
Percentage of shares (as a % of total shareholding of the
promoter and promoter group) |
- |
- |
- |
|
Percentage of shares (as a % of total share capital of the
company) |
- |
- |
- |
|
|
|
|
|
|
b) Non Encumbered |
|
|
|
|
Number of shares |
48434191 |
48434191 |
48434191 |
|
Percentage of shares (as a % of total shareholding of the promoter
and promoter group) |
100.00% |
100.00% |
100.00% |
|
|
|
|
|
|
Percentage of shares (as a % of total share capital of the
company) |
62.90% |
62.90% |
62.90% |
|
|
|
|
|
|
B.
Investor Complaints |
|
||
|
Pending at the beginning of the quarter |
Nil |
||
|
Receiving during the quarter |
3 |
||
|
Disposed of during the quarter |
3 |
||
|
Remaining unreserved at the end of the quarter |
Nil |
||
Notes:
1.
The above results were reviewed by the
Audit Committee on 7th February, 2013 and taken on record by the
Board of Director of the company at its meetings held on 8th
February, 2013. The above results have been reviewed by the Statutory Auditors
of the company.
2.
The interim dividend of Rs. 250.000
Millions (25%) per equity shares of Rs.10 each for the financial year 2012-13
declared at the board Meeting held on 9th November, 2012 has been
paid during the quarter.
3.
Pursuant to an interim order of the
Hon’ble Jodhpur High Court, Mining operations at chanderia Unit had remained
suspended since 20th August, 2011 severally affecting the working of
the unit. A special Leave petition (SPL) was filed by the company before the
4.
Changes in Inventories include Rs.
277.88 and other expenses Rs. 39.76 on account of loss due to fire occurred in
company’s Birla Jute Mills Unit during the quarter. Insurance claim have been
lodged and the same will be accounted for on settlement/realization since the
amount is unascertained.
5.
Other expenses includes foreign
exchanges fluctuation loss of Rs. 195.21 for quarter ended 31st
December, 2012, Gain of Rs. 805.45 for the quarter ended 30th
September, 2012, loss of Rs. 1281.28 for the quarter ended 31st
December, 2011 and loss loss of Rs. 1037.92 for quarter ended 31st
December, 2012.
6.
Consequent to the implementation of SAP
ERP system at Cement and steel Foundry Units from 1st December,
2012, the method of valuation of inventories of raw material has been changed
from FIFO basis to Weighted Average basis. As a result of this change,
Inventory Value as on 31st December, 2012 and profit for the quarter
/ nine month ended 31st December, 2012 are higher by Rs. 212.41.
7.
Figures for previous periods have been
regrouped/ rearrange, wherever necessary.
8.
There were no exceptional items during
he quarter/nine month ended 31st December, 2012.
UNAUDITED SEGMENT WIE REVENUE, RESULTS AND
CAPITAL EMPLOYED
( Rs. In Millions)
|
Particulars |
Quarter
Ended (
Unaudited) |
Nine
Month Ended (
Unaudited) |
|
|
|
31.12.2012 |
30.09.2012 |
31.12.2012 |
|
1.
Segment Revenue |
|
|
|
|
a. Cement |
5872.000 |
6211.700 |
18630.500 |
|
b. Jute |
228.000 |
37.500 |
271.000 |
|
c. Power |
680.700 |
663.500 |
1941.600 |
|
d. Others |
25.500 |
24.000 |
77.000 |
|
Total |
6806.200 |
6936.700 |
20920.100 |
|
Less : Inter Segment Revenue |
680.700 |
662.300 |
1940.000 |
|
Net
Sales |
6125.500 |
6274.400 |
18980.100 |
|
|
|
|
|
|
2.
Segment Result (Profit
before Interest and Tax) |
|
|
|
|
a. Cement |
2.000 |
643.300 |
1734.300 |
|
b. Jute |
(17.300) |
(60.300) |
(135.500) |
|
c. Power |
412.800 |
361.800 |
1096.400 |
|
d. Others |
(6.800) |
(8.500) |
(22.700) |
|
Total |
390.700 |
936.300 |
2672.500 |
|
|
|
|
|
|
Less
: (i) Interest |
717.300 |
140.700 |
549.200 |
|
(ii) Other un-allocable
expenditure net off un-allocable income. |
(108.300) |
(260.400) |
(392.200) |
|
|
|
|
|
|
Profit
before Tax |
327.700 |
1056.000 |
2515.500 |
|
3.
Capital Employed |
|
|
|
|
a. Cement |
17887.600 |
18092.300 |
17887.600 |
|
b. Jute |
902.300 |
792.100 |
902.300 |
|
c. Power |
3202.300 |
3292.000 |
3202.300 |
|
d. Others |
250.700 |
254.100 |
250.700 |
|
Total |
22242.900 |
22430.500 |
22242.900 |
Press Release
8 February 2013
BIRLA CORPORATION Q3 NET SALES
AT RS. 6125.500 Millions
Shri Harsh V. Lodha, Chairman of Birla
Corporation Limited, commenting on the results of the Company in the third quarter
of 2012-13, after its Board meeting in Kolkata today, said the performance has
been satisfactory considering the fact that both the volume of production as
well as profitability continued to be affected substantially because of
suspension of captive mining operations at the Chanderia Plant of the Company.
Purchase of limestone and clinker to run the operation of the Plant had
severely dented margins.
The
Company filed a Special Leave Petition (SLP), challenging the order dated 25
May 2012 of the Hon’ble High Court, inter
alia, prohibiting mining and blasting operations at Chanderia units.
While hearing the prayer for an interim order to allow mining operations
without blasting, the Hon’ble Supreme Court has permitted the Company to carry
out mining operations manually, without use of any kind of heavy equipment and
has advised the Central Building Research Institute to conduct a study and
evaluate the impact of mining, without blasting operations, on Chittorgarh
Fort. The unit has geared itself up to carry out mining operations through
mechanical means by way of use of rippers, rock breakers and excavators. Once
the
Shri
Lodha emphasized that despite the suspension of mining operations, the
Company’s units in Chanderia could produce more cement during the quarter, as
compared to the corresponding quarter of the previous year, by way of procuring
limestone and clinker from the local market though at substantially higher
costs, to retain market share.
He
stated that profitability during the quarter, when compared to the
corresponding quarter in the previous year, was impacted by increase in cost of
raw material and power, as well as freight cost following the increase in
diesel prices. The cement realization has also come down sequentially from the
quarter ending September 2012 impacting profitability.
Further,
shortage of wagons and the demand slump, in view of the festive season as well
as elections in
With a
view to increasing cement grinding capacity, improving quality and reducing
power consumption, the Company has installed Roller Press at Satna, Chanderia
and
The
recently introduced premium Portland Slag Cement brand, Birla Samrat UNIQUE,
with improved quality and fineness, is gaining acceptance in the market,
particularly in the Eastern Region.
There
has been progress in the development of the Talavadi Cements Limited project
with the Mineral Ressces Department of the Madhya Pradesh Government recently
advising Talavadi Cements Limited, a subsidiary of Birla Corporation Limited,
to submit the mining plan in regard to allotment of mining lease of about 2,130
hectares at Satna. The Company plans to put up a 3-million ton cement plant at
this location.
CSR : Amongst its CSR activities, the Company
is supporting the establishment of the multi-speciality 200-bed
ERP :
During the quarter, the Company has successfully implemented the ERP system in
all its cement units. This will introduce best practices and improve the
overall efficiency of the Company by augmenting its information technology
capabilities.
JUTE
DIVISION: After a six and a half-month
long suspension of work at Birla Jute Mills, Birlapur, the plant resumed
operations, after a tripartite agreement, on 18 October 2012. Normal
operations, however, could be resumed only from 2nd week of November 2012.
Again, work was affected on account of fire in one of the sections of the mill
on 3 December 2012 which damaged the building, plant & machinery and finished
goods. Despite the above set-back the working of the unit is improving
gradually. Insurance claim has been filed and the same is being pursued.
OUTLOOK: On
the back of revival in demand and improved realizations, the operational
performance of the Company is expected to improve in the last quarter of the
financial year. However, factors such as unabated increase in input and freight
costs, coupled with an over-supply scenario, will remain causes of concern. The
industry is staring at a substantial increase in production cost as oil
companies have recently raised diesel prices by Rs 10 a litre for institutional
buyers.
That
apart, till such time the mining of limestone at Chanderia is not commenced, the
Company will not be able to make full use of its capacity at Chanderia and, at
the same time, the profitability of the Company will continue to suffer as the
limestone/clinker purchased from third party sources will be much more
expensive than captive mining.
Highlights:
FOR
THE QUARTER ENDING 31 DECEMBER 2012
• Net Sales at Rs.6125.500 Millions up
by 14.58%*
• EBIDTA at Rs.783.800 Millions PAT at Rs.322.100 Millions. EPS at Rs.4.18 Cement Despatches at 155.200 Millions tons up by 11.90%*
• Cement Production at 159.200 Millions
tons up by 15.95%*
•
Percentage of Blended Cement as
a %age of Total Cement Sales continues
to be high at about 94%
* as
compared to corresponding period of previous year
DISCLAIMER
Statements in this release describing the Company’s
objectives, projections, estimates, expectations or predictions may be ‘forward
looking statements’ within the meaning of applicable laws or regulations.
Actual results could, however, differ materially from those expressed or
implied. Important factors that could make a difference to the Company’s
Operations include global and domestic demand-supply conditions, finished goods
prices, raw materials and fuel costs & availability, transportation cost,
changes in Government regulations and tax structure, economic developments
within
Press Release
9 November 2012
BIRLA CORPORATION Q2 PAT AT RS. 802.400
MILLIONS
Highlights:
FOR THE QUARTER
• Net
Sales at Rs.62.744 up by 24%*
• EBIDTA at
Rs.14.485 Millions up by 145%*
• PAT at
Rs.8.024 Millions up by 207%*
• EPS at
Rs.1.042 Millions up by 207%*
• Cement Despatches at
15.79 tons up by 12%*
• Cement Production at
15.47 tons up by 9%*
• The percentage of Blended Cement as a %age of Total Cement Sales continues to be high at about 94%
• Highest ever
Production and Despatches in 2nd quarter in any year
* as compared to corresponding quarter of previous year
HALF-YEARLY
• Net Sales at
Rs.128.546 Millions up by 21%*
• EBIDTA at
Rs.30.524 Millions up by 26%*
• PAT at
Rs.16.498 Millions up by 20%*
• EPS at
Rs.2.412 Millions up by 20%*
• Cement Despatches at
32.07 tons up by 9%*
• Cement Production at
31.87 tons up by 9%*
• The percentage of Blended
Cement as a %age of Total Cement
Sales continues to be high at about 94%
• Highest ever
Production and Despatches in the 1st Half in any Year.
* as compared to
corresponding 1st half of previous year
OTHER HIGHLIGHTS
• Interim Dividend of Rs.2.50 (25%) declared.
• Suspension of mining operations at Chanderia continues,
SLP pending in Supreme Court.
• EBIDTA is higher
mainly on account of higher despatches, increased sale of blended cement and
higher realization.
• With the increase in grinding capacity at
• Environmental clearance received for expansion of cement
capacity by 1.5 MT along with 50 MW captive power plant at Chanderia.
•
Operations at Birla Jute Mills at Birlapur resumed with effect from 18 October
2012.
• The
Net Worth of the Company stood at Rs. 2,3858.800 Millions and Book Value per
share at Rs. 309.83 Millions as on 30 September 2012.
• The
Company is financed with debt equity ratio of 0.35 as on 30 September 2012.
While
commenting on the results, Shri Harsh V. Lodha, Chairman of the Company, said profitability
of the Company continued to be affected substantially because of total
suspension of captive mining at Chanderia. That apart, the significant increase
in rail freight on incoming raw materials and outgoing cement despatches and
the expenditure on transportation of goods through road owing to increase in
prices of diesel also impacted the profit.
While
approving the results of the 2nd quarter today, the Board declared an interim
dividend of Rs. 2.50 (25%) for the financial year 2012-13.
The performance
of the Company would have been much better but for the suspension of mining
operations at Chanderia in view of the order of the Hon’ble High Court at
Shri
Lodha stated that in spite of suspension of mining operations, Chanderia units
continued their operations by purchasing limestone and clinker from third
parties at substantially higher costs, to protect their market share.
The
profit of the Company as a whole when compared to that of the corresponding
quarter in the previous year was better on account of higher realisation,
higher despatches, increased sale of blended cement and foreign exchange gains.
During
the quarter, the grinding capacity at the Company’s plants at
The
coal washery at Satna, being set up for assured supply of sustained quality of
processed coal, is likely to be operational by December 2012.
At Chanderia, the brown field expansion of the production
capacity by 1.2 million tons was commissioned in March 2012. However, this new
capacity could not be gainfully utilized because of the shortage of limestone
at Chanderia. The Company has received the environmental clearance to expand
capacity by another 1.5 million tons along with the setting up of a 50 MW
captive power plant. Once the Hon’ble Supreme Court allows mining operations
steps will be taken to expand the capacity.
JUTE
DIVISION: Suspension of work at Birla Jute
Mills since 31 March 2012 was lifted on 18 October 2012 following a tripartite
settlement with the trade unions. With the ongoing modernisation programme involving
upgradation of machineries, coupled with rationalisation of manpower, the
performance of the division is expected to improve in the coming quarters.
OUTLOOK: With the monsoon coming to an
end, the demand for cement is expected to be the strong in the near future.
However, unabated increase in the cost of raw materials, fuel and freight,
coupled with the oversupply scenario, will continue to put pressure on margins.
That apart, till such time the mining of limestone at Chanderia is not commenced,
the Company will not be able to make full use of its capacity at Chanderia and
at the same time, the profitability of the Company will continue to suffer as
the limestone/clinker purchased from third party sources will be much more
expensive than captive mining.
Press Release (Q1: 2012-13)
28 July 2012
BIRLA CORPORATION
Q1 PaT at Rs. 850.000 Millions
Cement Despatch
(Lac Tns.) 16.28 16.33 15.20
Net Sales / Income
from Operations (Net of excise duty) (Rs in Millions) 6580.2651.36 5569.700
Profit After Tax
(Rs in Millions) 847.457.46 1118.800
Birla
Corporation Limited, the flagship company of the M P Birla Group and cement
major, has earned a Profit after Tax of Rs 8.474 Millions
in the First Quarter of the current financial year against Rs. 11.188 Millions in the previous corresponding quarter. The
net sales/income from operations for the quarter were Rs. 65.802 Millions (Rs.
55.697 Millions ). The Profit after Tax,
compared to the preceding quarter, has gone up by 47%.
Commenting on the results, Shri Harsh V.
Lodha, Chairman of the Company, stated that the profitability of the Company
continued to be affected due to the closure of limestone mining operations at
its Chanderia Units on account of the order of the Hon’ble High Court at
The suspension of
work at Birla Jute Mills, Birlapur, too, had an adverse effect on the Company’s
bottomline. In its final order on 25 May 2012 regarding the Chanderia matter,
the Hon’ble High Court has prohibited mining and blasting within 10 Km from the
wall of the Chittorgarh Fort and ruled that the mining leases granted in such
area be cancelled. All mine holders were directed to make payment of
compensation to the tune of Rs. 50.000 Millions, 90% of which was imposed on
the Company. Since then the Company filed a Special Leave Petition before the
Hon’ble Supreme Court, challenging the aforesaid order The SLP was admitted and
levy of compensation stayed.
Shri Lodha stated
that in spite of suspension of mining operations, the Chanderia Units could
continue production by outsourcing limestone and clinker, though at a
substantially higher cost, to protect its market.
The Company has
otherwise performed well in all the other locations and achieved the highest
ever quarterly sale of blended cement, which stood at 95%, against the industry
average of around 70%.
Several projects,
undertaken by the Company to enhance capacity as well as improve efficiency at
various locations, are in the process of completion following implementation of
the 1.2‐million‐ton brownfield
cement capacity expansion project at Chanderia.
PROJECTS TO BE
COMPLETED IN 2012‐13
Modification of cement mill at Satna, together with clinker and fly ash silo
Coal
Washery together with wagon tippler at Satna
Modification of cement mill at Chanderia
2 MW
Waste Heat Recovery System at Chanderia
0.7‐million‐ton expansion
project at
Modernization of the grinding unit at Raebareli
Implementation of the ERP system in the Company’s cement units
Shri Lodha said
that after completion of the above expansion projects the effective annual
capacity of the Cement Division would go up to 9.3 million tons.
The Board of
Directors of the Company, at its meeting today, elevated Shri B R Nahar as
Managing Director of the Company.
The Company has
been allotted the Bikram Coal Block in Madhya Pradesh and administrative
approval for mining lease has been granted by the Union Ministry of Coal. The
environmental clearance report, as per requirements, has been submitted to the
expert committee of the Environment and Forest Ministry.
OVERSEAS VENTURE: The
Company has received exploration licence for coal and limestone in
JUTE DIVISION: Consequent
to an illegal strike and other unlawful activities resorted to by a section of
workmen on 30 March 2012 at Birla Jute Mills, suspension of work had to be declared
with effect from 31 March 2012. The suspension of work is still continuing. A
tripartite meeting is scheduled to be held shortly.
OUTLOOK: With Government impetus for development of the infrastructure,
including housing and roads, demand for cement is likely to increase by 8% to
9% per annum,.However, with the additional capacity coming up over the days, a
surplus scenario may continue for some more time. Further, input cost pressure,
aided by inflation, will continue to impact margins.
PRESS RELEASE
2 May 2012
BIRLA
CORPORATION MAINTAINS DIVIDEND
DESPITE
LOWER PROFIT
Birla Corporation Limited, the flagship
company of the M P Birla Group, has maintained its dividend despite posting a lower
profit for 2011-12. The turnover for the year was Rs 2,5968.200 Millions
against Rs 2,4368.100 Millions in the previous year and the turnover for the
quarter ending March 2012 was Rs 7399.800 Millions against Rs 6659.600 Millions
during the same period the previous year.
Commenting
on the results, Shri Harsh V. Lodha, Chairman of the Company, stated that the
profit was impacted substantially because of the disruption of operations at
the Chanderia unit of the Company, which is one of its main clinker producing
facilities. Owing to suspension of mining operations at the unit, on account of
a High
Court
Order, production there suffered substantially.
Apart
from the substantial increase in the cost of coal, power charges and freight,
both rail and road, also impacted the profits. The effective Excise Duty rate
increased in the recent Budget had also added to the cost.
The
working of the Chanderia unit has been hampered as the mining operation for
limestone at the plant remained suspended since 20 August 2011 in view of the
Order of the Hon’ble
the
IBM. The matter is expected to be heard shortly.
Shri
Lodha said that it was pertinent to point out that in spite of the suspension of
mining activities, the Chanderia unit could operate at more than 50% of its
clinker capacity by procuring limestone and clinker from the market which
helped in maintaining its market share even though it came at a higher cost,
reducing profitability.
The
Company could increase the production of blended cement to 89.08% in 2011-12
(the highest ever), against 86.37% in the previous year, which had partially
mitigated the situation.
DIVIDEND: The Company’s Board of Directors
approved the audited financial results for 2011-12 on Wednesday (2 May 2012).
In spite of the lower profit, the Board has decided to maintain the dividend
and approved a final dividend of Rs 3.50 per share, in addition to the interim
dividend of Rs. 2.50 per share already declared and paid. The total outgo on
account of dividend, including taxes, for 2011-12 works out to Rs 537.000
Millions.
Cement
demand across the country was down in the first three quarters of the fiscal
owing to poor demand from infrastructure and real estate companies. High
borrowing cost and the economic slowdown brought down the demand. However,
since January this year, there has been a revival in demand.
At Chanderia, the
brownfield expansion of the production capacity by 1.2 million tons was
commissioned in March this year. At
enhanced to about 9.3
million tons.
At Satna, the Coal
Washery is likely to be operational by the end of the third quarter of 2012-13.
This will help in maintaining the quality of coal, required for cement
production, on a sustained basis.
The Company was allotted the Bikram Coal Block
in Madhya Pradesh and administrative approval for mining lease has been granted
by the Union Ministry of Coal. The forest and environmental clearances are
being followed up.
The M. P.
Government had recommended to the Union Ministry of Mines allotment of mining
lease of about 2,130 hectares in Satna district to Talavadi Cements Limited, a
subsidiary of Birla Corporation Limited. The recommendation has been challenged
by some parties. However, the Hon’ble Madhya Pradesh High Court at
ERP: Implementation of the ERP system in all the cement units of the Company
is likely in the second quarter of the financial year 2012-13. The ERP system
will introduce best practices and improve the overall efficiency of the Company
by augmenting its information technology capabilities.
AWARDS &
RECOGNITION: The Quality Circle team, “Pratigya”, of the Satna
unit participated in the International Convention Quality Circle at Yakohama
and won the “Distinguished” Award. Two other Quality Circle teams, “Kiran” and
“Lakshya”, participated in the Regional Convention, Quality Circle, at
JUTE DIVISION: Consequent to an illegal strike and other unlawful activities resorted
to by a section of workmen on 30 March 2012, at the Birla Jute Mills unit of
the Company, suspension of work has been declared with effect from 31 March
2012.
OUTLOOK: The demand momentum is expected to continue in the next fiscal as the
Union Budget has focused on developing infrastructure and boosting investment
in affordable and rural housing. Cost pressure continues to be a matter of
concern. The rise in rail freight and excise duty and expected volatility of
prices in the light of growing regulatory risks may add pressure to operating
margins. Coal is set to become dearer as the Government has approved the
revision in royalty rates to 14% on ad
valorem basis.
Fixed Assets:
- Building
- Plant and machinery
- Furniture and fittings
- Vehicles
- Office equipment
- Livestock
- Railway sidings
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. 54.210 |
|
|
1 |
Rs. 84.001 |
|
Euro |
1 |
Rs. 70.977 |
INFORMATION DETAILS
|
Report Prepared
by : |
VNT |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
8 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
8 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
8 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT LINES |
1~10 |
7 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
YES --LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
DEFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
69 |
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.