MIRA INFORM REPORT

 

 

Report Date :

08.05.2013

 

IDENTIFICATION DETAILS

 

Name :

MSPL LIMITED

 

 

Formerly Known As :

MINERAL SALES LIMITED (w.e.f. 01.07.1997)

 

MINERAL SALES PRIVATE LIMITED

 

 

Registered Office :

No.117, "Baldola Bhavan", Maharshi Karve Road, Mumbai – 400020, Maharashtra

 

 

Country :

India

 

 

Financials (as on) :

31.03.2012

 

 

Date of Incorporation :

18.10.1961

 

 

Com. Reg. No.:

11-012160

 

 

Capital Investment / Paid-up Capital :

Rs.384.000 Millions

 

 

CIN No.:

[Company Identification No.]

U13100MH1961PLC012160

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

BLRM10132D

 

 

PAN No.:

[Permanent Account No.]

AABCM1040N

 

 

Legal Form :

A Closely Held Public Limited Liability Company

 

 

Line of Business :

Mines, Processes and Exports of Iron Ore.

 

 

No. of Employees :

Information declined by the management

 

 

RATING & COMMENTS

 

MIRA’s Rating :

B (27)

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Maximum Credit Limit :

USD 34700000

 

 

Status :

Moderate

 

 

Payment Behaviour :

Slow

 

 

Litigation :

Clear

 

 

Comments :

Subject is a flagship company of the Karnataka based Baldota Group.

 

It is an old established company having a moderate track record. There appears huge losses recorded by the company. The reserve of the company is deteriorating.

 

The rating also take into consideration the delay in servicing of debt due to weak liquidity.

 

However, the company gets strong support from its holding company.

 

Business is active. Payments are reported to be slow.

 

The company can be considered for business dealings with great caution.

 

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)

India

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

CRISIL

Rating

D (Long Term Rating)

Rating Explanation

Default

Date

January 22, 2013

 

 

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 has been found enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2012.

 

 

LOCATIONS

 

Registered Office :

No.117, "Baldola Bhavan", Maharshi Karve Road, Mumbai – 400020, Maharashtra, India

Tel. No.:

91-22-22030989

Fax No.:

91-22-24133766/ 22019762

E-Mail :

manjunath@mspllimited.com

email@mspllimited.com

mspl.mum@mspllimited.com

Website :

www.mspllimited.com

Area :

5000 sq. ft.

Location :

Owned

 

 

Bangalore Office :

Baldota Villa, No.368 No.105, Embassy Square, 148, Infantry Road, Bangalore - 560001, Karnataka, India

Tel. No.:

91-80-40301500

Fax No.:

91-80-40301533

E-Mail :

mspl.blr@mspllimited.com

 

 

Head Office/ Corporate Office :

Baldota Enclave, Abheraj Baldota Road, Hospet – 583203, Karnataka, India

Tel. No.:

91-8394-232002/ 3/ 4

Mines: 91-8394-244158

Fax No.:

91-8394-232333

E-Mail :

email@mspllimited.com

 

 

Factory 1 :

Mines and Export Oriented Unit

Vyasanakere Village, Hospet

Area :

347.2 Hectare

Location :

Leased

 

 

Factory 2 :

Hosahalli Village, Munirabad – 583233, Karnataka, India

 

 

Windmill :

Vankusawade, Satara, Maharashtra, India

 

 

Chennai Office:

 

Door No.10, Plot No.56, Sriram Nagar, 1st Cross Street, Opposite. L. I. C. Colony,  Thiruvanmiyur, Chennai - 600041, Tamilnadu, India

Tel. No.:

91-44-24911875

E-Mail :

mspl.chennai@mspllimited.com

 

 

DIRECTORS

 

As on: 26.07.2012

 

Name :

Mr. Narendrakumar Abheraj Baldota

Designation :

Managing Director

Address :

Chinar, Baldota Colony, Hospet, Bellary – 583203, Karnataka, India

Date of Birth/Age :

27.12.1940

Qualification :

B.Com Diploma-IM

Date of Appointment :

11.06.1966

Voter ID No.:

MT04034264214

DIN No.:

00130619

 

 

Name :

Mr. Rahul Kumar Narendrakumar Baldota

Designation :

Whole Time Director

Address :

Chinar, Baldota Colony, Hospet, Bellary – 583203, Karnataka, India

Date of Birth/Age :

26.12.1967

Qualification :

BE (Mech.) MBA

Date of Appointment :

16.12.1995

DIN No.:

00130764

 

 

Name :

Mr. Shrenik Kumar Narendrakumar Baldota

Designation :

Whole Time Director

Address :

Chinar, Baldota Colony, Hospet, Bellary – 583203, Karnataka, India

Date of Birth/Age :

27.11.1971

Qualification :

B.Com

Date of Appointment :

21.09.1998

DIN No.:

00130831

 

 

Name :

Mr. Ramkrishna Hemappa Sawkar

Designation :

Director

Address :

292, 5th Block, 38th A cross.  Jaya Nagar, Bangalore - 560041, Karnataka, India

Date of Birth/Age :

29.03.1935

Qualification :

B.Sc (Geology)

Date of Appointment :

21.09.1998

DIN No.:

00143273

 

 

Name :

Mr. Madhava Ravindra

Designation :

Director

Address :

Flat 1B, PGP Manor, 29 Barnaby Road, Kilpauk, Chennai – 600010, Tamilnadu, India

Date of Birth/Age :

08.12.1939

Qualification :

PG(Mathematics), CAIIB

Date of Appointment :

01.11.2005

DIN No.:

01086790

 

 

Name :

Mr. Meda Venkataiah

Designation :

Whole Time Director

Address :

No. OBA 1019-1, 2nd Cross, M.J. Nagar, Hospet – 583203, Karnataka, India

Date of Birth/Age :

02.07.1945

Date of Appointment :

15.10.2012

DIN No.:

06404575

 

 

KEY EXECUTIVES

 

Name :

Mr. Parveen Tugnait

Designation :

Executive Director (Corporate Communication)

 

 

Name :

Mr. Rana Lal Mukherjee

Designation :

Chief Financial Officer

 

 

Name :

Mr. Tapas Chatopadhyay

Designation :

Vice President ( Mines )

 

 

Name :

Mr. Nabaghan Pany

Designation :

Vice President Group HR (Corporate Cell)

 

 

Name :

Mr. B. Srivatsa

Designation :

Vice President (Marketing and Logistics)

 

 

Name :

Mr. Arvind Mathur

Designation :

Vice President (Business Development) 

 

 

Name :

Mr. M. Suresh Kumar

Designation :

Vice President (Shipping and Projects)

 

 

Name :

Mr. Ajit Kulkarni

Designation :

Vice President (Corporate Communication)

 

 

Name :

Mr. K.V.S. Subrahmanyam

Designation :

Vice President (Wind Power)

 

 

Name :

Mr. K. Madhusudhana

Designation :

General Manager (Mines)

 

 

Name :

Mr. P R. Ramanathan

Designation :

Company Secretary

Address :

H No.374, 3rd Cross M J Nagar, Hospet, Bellary - 583203, Karnataka, India

Date of Birth/Age :

16.04.1958

Date of Appointment :

30.06.2010

PAN No.:

ADHPR3159H

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

As on: 26.07.2012

 

Names of Shareholders

 

No. of Shares

Vasanti Abheraj  Baldota

 

6716160

Narendrakumar Abheraj Baldota

 

9024000

Rahulkumar Narendrakumar Baldota

 

19353600

Lavina Rahul Kumar Baldota

 

9600000

Shrenik Narendrakumar Kumar Baldota

 

30442980

Chitra Narendrakumar Baldota

 

200

Rashmi Shrenik Kumar Baldota

 

3840

Narendra Kumar Baldota HUF

 

1651200

Ramgad Minerals and Mining Private Limited, India

 

8020

 

 

 

Total

 

76800000

 

Equity Share Break up (Percentage of Total Equity)

 

As on: 26.07.2012

 

Category

 

Percentage

 

 

 

Bodies corporate

 

0.01

Directors or relatives of directors

 

99.99

Total

 

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

Mines, Processes and Exports of Iron Ore.

 

PRODUCTION STATUS (As on: 31.03.2012)

 

Particulars

Unit

Licensed Capacity

Installed Capacity

Actual Production

Iron Ore (Lumps SHG, Fines, Concentrate and Aggregates)

MT

NA

NA

55,023

Iron Ore Pellets

MT

NA

1200000

324898

Wind Power Generation

KWH

NA

335858400

312820655

 

Notes:

 

1. Figures in brackets are in respect of Previous Period.

 

2. The Installed Mega Watt capacity for wind power generation has been converted into Kilo Watt Hours (KWH) reported at 30% (Plant Load Factor) of standard Kilo Watt capacity.

 

3. The Installed capacities have been certified by the management, on which the auditors have placed reliance, this being a technical matter.

 

 

GENERAL INFORMATION

 

No. of Employees :

Information declined by the management

 

 

Bankers :

State Bank of India, College Road Branch, Parwaj Plaza, College Road, Hospet-583201, Karnataka, India

 

 

Facilities :

(Rs. In Millions)

Secured Loan

As on

31.03.2012

As on

30.09.2010

 

 

 

Rupee term loans banks secured

992.134

1785.888

Rupee term loans others secured

624.720

540.000

Foreign currency loans banks secured

519.517

645.531

Foreign currency loans others secured

833.240

733.310

Other debt secured

4548.592

2388.383

 

 

 

Total

7518.203

6093.112

 

 

 

Banking Relations :

--

 

 

Auditors 1 :

 

Name :

Deloitte Haskins and Sells

Chartered Accountants

Address :

Deloitte 12, Dr Annie Besant Road, Opposite Shiv Sagar Estate, Worli, Mumbai – 400018, Maharashtra, India

PAN No.:

AACFD4815A

 

 

Auditors 2 :

 

Name :

S.B. Chhajed and Company

Chartered Accountants

Address :

202, Inder Tower, Kakasaheb Gadgil Marg, Off Gokhale Road, Dadar (West), Mumbai – 400025, Maharashtra, India

PAN No.:

ABCFS0439E

 

 

 

 

Enterprises over which Key Management Personnel (KMP) have Significant Influence (where there are transactions) :

·         Ramgad Minerals and Mining Limited (RMML)

·         R S Enterprises

·         Vijaynagar Industrial Credits Limited

·         MSPL Gases Limited

·         Good Earth Chemicals Private Limited

·         Vijay Oxygen Company Limited

·         Aaress Iron and Steel Company Limited

 

 

Subsidiary :

MSPL Maritime Pte. Limited

 

 

Subsidiary of MSPL Maritime Pte. Limited :

MSPL Diamond Pte. Limited

 

 

CAPITAL STRUCTURE

 

As on: 31.03.2012

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

100000000

Equity Shares

Rs.5/- each

Rs.500.000 Millions

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

76800000

Equity Shares

Rs.5/- each

Rs.384.000 Millions

 

 

 

 

 

 

 


 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

31.03.2012

(18 Months)

30.09.2010

(18 Months)

31.03.2009

(12 Months)

SHAREHOLDERS FUNDS

 

 

 

1] Share Capital

384.000

384.000

384.000

2] Share Application Money

0.000

0.000

0.000

3] Reserves & Surplus

8308.510

10985.375

12458.174

4] (Accumulated Losses)

0.000

0.000

0.000

NETWORTH

8692.510

11369.375

12842.174

LOAN FUNDS

 

 

 

1] Secured Loans

7518.203

6093.112

2370.959

2] Unsecured Loans

830.173

4.668

54.900

TOTAL BORROWING

8348.376

6097.780

2425.859

DEFERRED TAX LIABILITIES

0.000

343.563

843.563

 

 

 

 

TOTAL

17040.886

17810.718

16111.596

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

5530.277

3978.798

5265.324

Capital work-in-progress

415.954

2857.745

680.187

 

 

 

 

INVESTMENT

3307.688

5221.218

6136.060

DEFERREX TAX ASSETS

0.000

0.000

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories

1026.867
1079.466

1027.555

 

Sundry Debtors

2716.597
278.647

810.638

 

Cash & Bank Balances

978.234
900.722

1030.919

 

Other Current Assets

8.964
8.964

10.227

 

Loans & Advances

4531.767
5287.587

2117.262

Total Current Assets

9262.429
7555.386

4996.601

Less : CURRENT LIABILITIES & PROVISIONS

 
 

 

 

Sundry Creditors

926.554

973.062

933.410

 

Other Current Liabilities

435.079
422.374

10.841

 

Provisions

114.249
407.843

23.604

Total Current Liabilities

1475.882
1803.279

967.855

Net Current Assets

7786.547
5752.107

4028.746

 

 

 

 

MISCELLANEOUS EXPENSES

0.420

0.850

1.279

 

 

 

 

TOTAL

17040.886

17810.718

16111.596

 

 

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

 

31.03.2012

(18 Months)

30.09.2010

(18 Months)

 

SALES

 

 

 

 

 

Income

 

7321.920

11253.319

 

 

Other Income

 

391.273

1375.194

 

 

TOTAL                                     (A)

 

7713.193

12628.513

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Consumption materials changes inventories

 

2673.263

3988.397

 

 

Manufacturing service costs

 

948.138

893.332

 

 

Employee related expenses

 

457.912

510.165

 

 

Administrative selling other expenses

 

1780.051

4491.693

 

 

Exceptional income expense

 

2376.170

3246.463

 

 

TOTAL                                     (B)

 

8235.534

13130.050

 

 

 

 

 

Less

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

 

(522.341)

(501.537)

 

 

 

 

 

Less

FINANCIAL EXPENSES                         (D)

 

1091.959

314.357

 

 

 

 

 

 

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

 

(1614.300)

(815.894)

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

 

1406.128

1156.904

 

 

 

 

 

 

PROFIT/ (LOSS) BEFORE TAX (E-F)                 (G)

 

(3020.428)                                                                                                                                                                                                                                                                                                                                                                        

(1972.798)

 

 

 

 

 

Less

TAX                                                                  (H)

 

(343.563)

(500.000)

 

 

 

 

 

 

PROFIT/ (LOSS) AFTER TAX (G-H)                   (I)

 

(2676.865)

(1472.798)

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

 

9113.717

10586.515

 

 

 

 

 

 

BALANCE CARRIED TO THE B/S

 

6436.852

9113.717

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

 

 

 

 

 

Export Earnings

 

1072.418

7681.042

 

 

Freight Recovered from customers

 

65.686

1643.173

 

 

Sale of Certified Emission Reduction

 

220.691

162.430

 

TOTAL EARNINGS

 

1358.795

9486.645

 

 

 

 

 

 

IMPORTS

 

 

 

 

 

Stores, Spare parts

 

39.103

7.942

 

 

Fuel (Coal)

 

183.508

0.000

 

 

Capital Goods

 

58.743

606.550

 

TOTAL IMPORTS

 

281.354

614.492

 

 

 

 

 

 

Earnings/ (Loss) Per Share (Rs.)

 

(34.86)

(19.18)


PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

 

 

31.03.2009

(12 Months)

 

SALES

 

 

 

 

 

Income

 

 

17395.264

 

 

Other Income

 

 

1035.102

 

 

TOTAL                                     (A)

 

 

18430.366

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Purchase of product for sale

 

 

1316.370

 

 

Manufacturing Expenses

 

 

12333.207

 

 

Miscellaneous Expenditures W/Off

 

 

0.286

 

 

Increase/(Decrease) in Finished Goods

 

 

352.448

 

 

Loss from forward and option contracts

 

 

1785.138

 

 

TOTAL                                     (B)

 

 

15787.449

 

 

 

 

 

Less

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

 

 

2642.917

 

 

 

 

 

Less

FINANCIAL EXPENSES                         (D)

 

 

127.084

 

 

 

 

 

 

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

 

 

2515.833

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

 

 

859.552

 

 

 

 

 

 

PROFIT BEFORE TAX (E-F)                               (G)

 

 

1656.281

 

 

 

 

 

Less

TAX                                                                  (H)

 

 

(235.000)

 

 

 

 

 

 

PROFIT AFTER TAX (G-H)                                 (I)

 

 

1891.281

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

 

 

9019.142

 

 

 

 

 

 

APPROPRIATIONS

 

 

 

 

 

Transfer to General Reserve

 

 

189.128

 

 

Dividend

 

 

115.200

 

 

Tax on Dividend

 

 

19.579

 

BALANCE CARRIED TO THE B/S

 

 

10586.516

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

 

 

 

 

 

Export Earnings

 

 

13764.748

 

 

Fright Recovered from Customers

 

 

2681.839

 

 

Other Earnings

 

 

0.000

 

TOTAL EARNINGS

 

 

16446.587

 

 

 

 

 

 

IMPORTS

 

 

 

 

 

Stores & Spares

 

 

27.028

 

 

Capital Goods

 

 

499.634

 

TOTAL IMPORTS

 

 

526.662

 

 

 

 

 

 

Earnings Per Share (Rs.)

 

 

24.63

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2012

(18 Months)

30.09.2010

(18 Months)

31.03.2009

(12 Months)

PAT / Total Income

(%)

(34.70)

(11.66)

10.26

 

 

 

 

 

Net Profit Margin

(PBT/Sales)

(%)

(41.25)

(17.53)

9.52

 

 

 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)

(20.42)

(17.10)

20.96

 

 

 

 

 

Return on Investment (ROI)

(PBT/Networth)

 

(0.35)

(0.17)

0.13

 

 

 

 

 

Debt Equity Ratio

(Total Debt/Networth)

 

0.96

0.54

0.19

 

 

 

 

 

Current Ratio

(Current Asset/Current Liability)

 

6.28

4.19

5.16

 

 

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

Yes

5]

Type of Business

Yes

6]

Line of Business

Yes

7]

Promoter's background

Yes

8]

No. of employees

No

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

Yes

32]

PAN of Proprietor/Partner/Director, if available

No

33]

Voter ID No of Proprietor/Partner/Director, if available

Yes

34]

External Agency Rating, if available

Yes

 

 

UNSECURED LOAN

(Rs. In Millions)

 

As on

31.03.2012

As on

30.09.2010

Rupee term loans banks unsecured

134.132

0.000

Rupee term loans others unsecured

645.981

0.000

Loans directors unsecured

50.060

4.668

 

 

 

Total

830.173

 4.668

 

FINANCIAL PERFORMANCE:

 

They have noted that the current year has been passing through yet another spell of economic slump arising out of European continent leaving its back lashes to the rest of the world more specifically in China where economic actions have started dipping considerably low. This slowdown has inflicted a focused and intense impact on the commodity sector, which has been suffering the most. The overall sentiment in the global economy is at its nadir resulting into all sorts of adverse impacts on financial and commercial markets. Consequently, the risk perception has again started firming up leading to despondency and deep rooted recessionary environment all over. However, the only silver lining is the signs of gradual recovery in US economy which is albeit inconsistent and unstable in their forward march.

 

India as a part of globalised economy could not remain insulated for a longer time from the vagaries of persistent global economic turmoil and upheavals. Besides, there are quite a handful of issues within the economy in terms of high and consistent inflation, peak interest rate, successive dips in GDP outlook, poorest IIP indices high fiscal deficit, burgeoning BOP crisis, record foreign exchange volatility out of depreciating rupee, very low investment growth, slowest forex inflow and last but not the least weak governance due to policy inactions and bottlenecks which have been responsible for weakest state of the country’s economy.

 

Due to protracted stoppage of Iron Ore mining operation for more than three years, the cash flow position faced a severe jolt. However, fructification of Pellet business during the pendency of the current period has come handy as a source of cash generation. The Wind Power business has maintained steady flow of cash earning to minimize the cash losses. Whereas the vagaries of forex market volatility has taken a huge toll in terms of forex losses in connection with derivative contracts booked way back in 2007, the borrowing is on the rise. This has resulted in the hefty outflow on account of Interest payments which was Rs.1032.800 Millions compared to Rs.310.000 Millions in the previous period.

 

Iron Ore Mining

 

The operation of the iron ore mining business has been facing virtual closure during the reporting period due to impending ban on iron ore mining imposed by the apex court and earlier ban on export of iron ore imposed by the State Government of Karnataka. The Supreme Court had appointed the Central Empowered Committee in order to investigate the extent and nature of violation of various statutes and establish encroachment of boundaries by various mines and re-establish boundaries. Mines would be required to get their Rehabilitation and Reclamation plans approved by the specified authorities pending re-commencement of mining operation as would be ordered by the Supreme Court on recommendation of CEC. Due to aforesaid circumstances, the iron ore mining operation of all the mines in the region has come to a grinding halt. However, it is expected that the regular operation of mines would resume shortly based on the impending order of the Supreme Court.

 

CONTINGENT LIABILITIES

(Rs. In Millions)

Particular

As on

31.03.2012

As on

30.09.2010

Guarantees given to the banks:

 

 

For working capital and term loan facility availed by Ramgad Minerals and Mining

Limited; a company in which the executive directors are Substantially Interested (to the extent of Loan outstanding)

439.042

668.349

For loan availed by MSPL Diamonds Pte. Limited, a step down subsidiary Company. (To the extent of loan outstanding).

6594.570

2040.750

Claims against the company not acknowledged as debts

 

 

Income Tax including interest (Penalty not quantifiable)

3077.048

2744.347

Service Tax (Penalty and Interest not quantifiable)

177.290

139.381

Karnataka Forest Development Tax

316.534

556.129

Stamp Duty (Penalty not quantifiable)

17.694

17.694

Custom Duty on import of aircraft

75.125

75.125

Export port expenses (applied for the waiver)

38.015

33.386

Reclamation and Rehabilitation Plan expenditure as per the Honourable Court Order

25.000

0.000

Claims by Supplier and Others matters in dispute

1.740

1.740

Future cash outflows in respect of the above items are dependent on receipt of judgement pending at various forums / authorities.

Income-tax related to disallowance of 10B benefit for one of the unit and other expenditure disallowance.

Service tax mainly related cenvat credit disallowed and liability for service tax on GTA and Leases.

55.711

0.000

 

 

Bankers Charges Report as per Registry

 

Corporate identity number (CIN) or foreign company registration number of the company

U13100MH1961PLC012160

Name of the company

MSPL LIMITED

Address of the registered office or of the principal place of  business in India of the company

No.117, "Baldola Bhavan", Maharshi Karve Road, Mumbai – 400020, Maharashtra, India

E-mail: manjunath@mspllimited.com

This form is for

Modification of charge

Charge identification (ID) number of the charge to be modified

90239980

Type of charge

·         Immovable property

·         Book debts

·         Movable property (not being pledge)

·         Floating charge

Particular of charge holder

State Bank of India, College Road Branch, Parwaj Plaza, College Road, Hospet-583201, Karnataka, India

E-mail: rjr.cs69@gmail.com

Nature of instrument creating charge

Supplemental agreement of hypothecation of goods and assets for increase in the overall limit form C.2-A and letter regarding the grant of individual limits within the overall limit form C.5 and EM confirmation letter form b - 3 no's (all pertain to the same charge.)

Date of instrument Creating the charge

07.01.2013

Amount secured by the charge

Rs.16584.800 Millions

Brief of the principal terms an conditions and extent and operation of the charge

Rate of Interest

1).WCL : AT 4.75% above BR, EFF rate 14.50%.P.A.

2).TL (existing) : AT 4.00% above BR, EFF RATE 13.75%.P.A.

3).TL (new) : AT 3.50% above BR, EFF rate 13.25%.P.A.

 

Terms of Repayment

WCL : on demand. Advance is for a period of 12 months.

 

Term loan (existing) : as per existing terms of sanction.

 

TL (new): in 117 monthly Insts, in first 14 Insts of Rs.2.500 Millions each; next 12 insts of Rs.5.000 Millions each; next 12 Insts of Rs.7.500 Millions each; next 12 Insts of Rs.10.000 Millions each; next 12 Insts of Rs.12.500 Millions each; next 12 insts of Rs.15.000 Millions each; next 12 Insts of Rs.17.500 Millions each; next 12 Insts of Rs.20.000 Millions each; next 18 Insts of Rs.22.500 Millions each and last inst of Rs.10.000 Millions.

 

Margin

RM/FG/receivables : 25%

 

TL-2 (NEW) : 41.00%

 

Extent and Operation of the charge

Exclusive first charge on the assets (specified in Col no.15) of the company to the full extent.

 

Others

Cash Credit Rs.2250.000 Millions; Additional Cash Credit Rs.500.000 Millions; Term Loan (Pellet Plant) Rs.745.100 Millions; Term Loan-1 Rs.1500.000 Millions; Term Loan-2 Rs.1500.000 Millions;

Letter of Credit Rs.100.000 Millions; Bank Guarantee Rs.50.000 Millions; Letter Of Comfort Rs.8690.000 Millions; Derivatives Rs.367.900 Millions; Credit Exposure Limit Rs.81.800 Millions; Bill Discounting Limit Rs.800.000 Millions; Total Rs.16584.800 Millions.

Short particulars of the property or asset(s) charged (including complete address and location of the property)

Hypo. of company's present and future movable fixed assets and current assets like stocks, raw materials, semi finished and finished goods, book debts, receivables, Windmills, outstanding monies, bills, rights, stores, components, furniture and fittings, other movables, plant and machinery, vehicles etc.,

 

1). EM of immovable properties situated in Sy. No. 44A, Sy. No. 44B, Sy. No. 43/2 and Sy. No. 43/3 at Aral Village, Patan Taluka, Satara District MP, Total Measuring 8.10 Hectares.

 

2). EM of immovable properties situated in various Survey No's at Halavarthy Village, Koppal, Total Measuring 110.24

 

3). EM of leas hold rights under the mining lease No. 2416, Measuring 858 Acres (347.22 Hectares), Situated at Vyasanakere Village, Hospet.

Date of instrument modifying the charge

28.09.2012

Particulars of the present modification

The amount secured by the charge stands increased to Rs.16584.800 Millions. The securities described and detailed in Col no. 15 herein above continue for the increased limit. All other terms and conditions remain unchanged.

 

 

FIXED ASSETS:

·         Freehold Land

·         Buildings

·         Leasehold Land

·         Mining Lease Rights

·         Plant, Machinery and Equipments

·         Railway Siding

·         Furniture, Fixtures and Office Equipment

·         Vehicles and Barges

·         Aircrafts

·         Software – SAP License Fees and Development Charges

 

 

 

CHARGES

 ENTITY

COMPETENT AUTHORITY

REGULATORY CHARGES

REGULATORY ACTION(S) / DATE OF ORDER

MSPL

EPFO

EXEMPTED AND UNEXEMPTED ESTABLISHMENTS DEFAULTED WITH EPFO INCLUDING PROVIDENT FUND, PENSION AND EDLI CONTRIBUTION, ADMINISTRATION CHARGES AND PENAL DAMAGES OF RS.1.531 MILLIONS

AMONG OTHER ACTIONS, NAMES OF DEFAULTERS PUT ON THE EPFO WEBSITE

31-MAR-2012

 

 

AS PER WEBSITE DETAILS

 

 MILESTONES

 

2007 -- 2007 – Established 100% EOU Unit at VIOM. Plant capacity in 475 TPH and has down hill Conveyor System to transport crushed material. Recertification of ISO 9001:2000 on 1st November 2006, valid till 15th September 2009 and OHSAS 18001:1999 on 31st August 2006, valid until 24th July 2009.

 

2006 -- Export Excellence Award 2006-07(In Large Category GOLD - Best Manufacturer Exporter Award) by Federation of Karnataka Chambers of Commerce and Industry.  Jamnalal Bajaj Uchit Vyavahar Puruskar by the Council for Fair Business Practices (CFBP)

 

2005 – 2006 State level Export Awards (In the category- Best Export Award-District Category-NON SSI-GOLD)

 

2003 -- Diversified into harnessing of wind energy.

 

1998 -- Acquired PVS Mines.

 

1996 -- 500 mt. slurry system commissioned.

 

1993 -- Beneficiation plant becomes operational.

 

1991 -- Installation of 180 tons/hour Down Hill Conveyer System with crushing and screening facilities.

 

1983 -- Gas plant established.

 

1962 -- Mining operations started.

 

 

PRESS RELEASE

 

MSPL BAGS CFBP JAMNALAL BAJAJ AWARD FOR FAIR BUSINESS PRACTICES FOR THE 2ND TIME

 

March 21, 2013

 

Mr. Deepak Parekh, Chairman, HDFC Limied said that the long term sustainability of an organization depends on organization’s culture, values and ethics. He said, "Many consumers still remain victims to unscrupulous and exploitative practices which could manifest in various forms such as mis-selling of products, food adulteration, unfair pricing etc., speaking at 25th Jamnalal Bajaj Awards for Fair Business Practices recently.

 

In view of rapid growth of consumption, a new consumer economy has emerged and the companies need to raise the bar by adopting better business practices through self regulation. This is essential as the Internet has emerged as a large platform for consumer to check on the products and companies and the information is available at finger tip. The Right to Information has also become an enabler to serve the consumer.

Parekh hoped that the worse for the country's economy is over and said that the fundamentals of the economy, especially the confidence among the consumers, are intact.


On the occasion, he gave away the awards to various winners including MSPL Limited, one of India’s largest iron ore mining companies. The award has been instituted by the Council for Fair Business Practices, Mumbai. MSPL bagged the award under Large Manufacturing Enterprise category and has won this award for the second time.

Accepting the award, Mr. Narendrakumar A. Baldota, Chairman and Managing Director, MSPL Limited said, “We are extremely delighted with this coveted recognition for our strong commitment to ethics and corporate social responsibility initiatives. MSPL has been engaged in legal mining since 1962. Even in the recent adverse situation, the company did not compromise on its cherished values. It did not join hands with any clandestine arrangements and did not become party to illegal mining. The company did not lay off even a single worker till January 2013. We went on becoming enlightened with courage and the negative situation made us determined and resolute. This industry recognition has inspired and energized us. This is befitting reward for the courage displayed”.

The Council for Fair Business Practices (CFBP) instituted Jamnalal Bajaj Award for Fair Business Practices in 1966. The awards are judged on the basis of customer satisfaction, employee motivation, environment protection and corporate social responsibility, among others. CFBP represents a body of like-minded businessmen in business and professionals, wanting to promote consumer confidence in business and services by adhering to highest possible ethical standards.


About MSPL Limited: MSPL Limited, a flagship Company of Baldota Group of Companies, is one of India’s leading iron ore mining companies and holds the distinction of being one of the country’s largest producers of wind power. It is also active in Industrial Gases, Shipping, Steel, Chemicals, Diamond and Gold Mining.

 

 

MSPL TAKES DELIVERY OF THIRD DRY BULK VESSEL

 

Mangalore, November. 6:  

 

MSPL Limited, which is a Baldota Group company of Hospet, received its third vessel at Jiangsu Province in China on Sunday.

A press release said here on Monday that MSPL Diamond Pte Limited, which is a wholly owned subsidiary of MSPL Limited, received the first and second vessels in April and July 2011, respectively. The third vessel was delivered on November 4.

 

 

 

 


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 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.54.28

UK Pound

1

Rs.84.32

Euro

1

Rs.71.00

 

 

INFORMATION DETAILS

 

Report Prepared by :

VRN

 


 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

3

PAID-UP CAPITAL

1~10

3

OPERATING SCALE

1~10

3

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

3

--PROFITABILIRY

1~10

3

--LIQUIDITY

1~10

3

--LEVERAGE

1~10

3

--RESERVES

1~10

3

--CREDIT LINES

1~10

3

--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

NO

--OTHER MERIT FACTORS

YES/NO

YES

DEFAULTER

 

 

--RBI

YES/NO

NO

--EPF

YES/NO

YES

TOTAL

 

27

 

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.