|
Report Date : |
05.10.2013 |
IDENTIFICATION DETAILS
|
Name : |
STAR FERRO AND CEMENT LIMITED SHYAM CENTURY FERROUS (A DIVISION OF STAR FERRO AND
CEMENT LIMITED) |
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Registered
Office : |
6, Lyons Range, 1st Floor Kolkata – 700001, West Bengal |
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Country : |
India |
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Financials (as
on) : |
31.03.2013 |
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Date of
Incorporation : |
10.03.2011 |
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Com. Reg. No.: |
21-160587 |
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Capital Investment
/ Paid-up Capital : |
Rs.0.500 Million |
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CIN No.: [Company Identification
No.] |
U27310WB2011PLC160587 |
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Legal Form : |
A Closely Held Public Limited Liability Company |
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Line of Business
: |
Manufacturer of Ferro Silicon and Generation of Power. |
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No. of Employees
: |
Not Divulged |
RATING & COMMENTS
|
MIRA’s Rating : |
B (31) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Maximum Credit Limit : |
USD 4240000 |
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Status : |
Moderate |
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Payment Behaviour : |
Slow |
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Litigation : |
Clear |
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Comments : |
Subject is an established company having moderate track record. The
company has incurred a loss from its operations. However, trade relations are
reported as fair. Business is active. Payments are reported to be slow. The company can be considered for business dealings with some
cautions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – March 31st, 2013
|
Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
|
India |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
INDIAN ECONOMIC OVERVIEW
We are living in a
world where volatility and uncertainty have become the New Normal. We saw a
change of government in countries like Tunisia, Egypt, Libya and Vietnam. Once
powerful countries in Europe are now fighting for bankruptcy. We have
taken growth in the developing part of the world for granted but economic
growth in China and India has begun to slow. Companies that were synonymous
with their product categories just a few years ago are now no longer in
existence. Kodak, the inventor of the digital camera had to wind up its
operations, HMV, the British entertainment retailing company and Borders, once
the second largest bookstore have shut down due to their inability to evolve
their business models with the changing time. Readers’ Digest, Thomson Register
are no more !
There is another
megatrend happening. The World order is changing as economic power shifts from
West to East. According to McKinsey study, it took Britain more than 100 years
to double its economic output per person during its industrial revolution and
the US later took more than 50 years to do the same. More than a century later,
China and India have doubled their GDP per capital in 12 and 18 years
respectively. By 2020, emerging Asia will become the world’s largest consuming
block, overtaking North America.
The years after the
outbreak of the global financial crisis, the world economy continues to remain
fragile. The Indian economy demonstrated remarkable resilience in the initial
years of the contagion but finally lost ground last year. GDP growth slowed
down. Currency has been weakening. There is a marked deceleration in agriculture,
industry and services. Dampening sentiment led to a cut-back in investment as
well as private consumption expenditure. Inflation remained at high
levels fuelled by the pressure from the food and fuel sectors. The large fiscal
and current account deficit s continued to cause grave concern. It is
imperative that India regains its growth trajectory of 8-9 % sooner than later.
This is crucially important given the need to create gainful livelihood
opportunities for the millions living in poverty as also the large contingent
of young people joining the job market every year.
RBI DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available RBI Defaulters’ list.
EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of
31-03-2012.
INFORMATION DENIED BY
|
Name : |
Mr. Sanjay Gupta |
|
Designation : |
Chief Executive Officer |
|
Contact No.: |
91-33-24484169 |
|
Date : |
03.10.2013 |
LOCATIONS
|
Registered Office : |
6, Lyons Range, 1st Floor Kolkata – 700001, West Bengal,
India |
|
Tel. No.: |
91-33-39403950 |
|
Fax No.: |
Not Available |
|
E-Mail : |
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|
Website : |
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|
|
Factory : |
Ferro Alloy and
Power Units EPIP Area, Byrnihat District Ri-Bhoi, Meghalaya, India |
DIRECTORS
As on: 31.03.2013
|
Name : |
Mr. Sajjan Bhajanka |
|
Designation : |
Chairman |
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|
Name : |
Mr. Hari Prasad Agarwal |
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Designation : |
Managing Director |
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|
Name : |
Mr. Sanjay Agarwal |
|
Designation : |
Director |
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|
Name : |
Mr. Mangi Lal Jain |
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Designation : |
Director |
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|
Name : |
Mr. Manindra Nath Banerjee |
|
Designation : |
Director |
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|
Name : |
Mr. Santanu Ray |
|
Designation : |
Director |
KEY EXECUTIVES
|
Name : |
Mr. Sanjay Gupta |
|
Designation : |
Chief Executive Officer |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
NOT AVAILABLE
BUSINESS DETAILS
|
Line of Business : |
Manufacturer of Ferro Silicon and Generation of Power. |
PRODUCTION STATUS (As on: 31.03.2013)
|
Particulars |
Unit |
Licensed
Capacity |
Installed
Capacity |
Actual
Production |
|
Ferro Silicon |
MT |
|
|
9463 |
|
Power |
MW |
|
|
81240 (a) |
(a) Entire power used for own consumption.
GENERAL INFORMATION
|
No. of Employees : |
Not Divulged |
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Bankers : |
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Facilities : |
(Rs.
In Millions)
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Banking
Relations : |
-- |
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Auditors : |
|
|
Name : |
Kailash B. Goel and Company Chartered Accountants |
|
Address : |
70, Ganesh Chandra Avenue, 1st Floor, Kolkata – 700013, West Bengal, India |
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Subsidiary
Companies : |
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CAPITAL STRUCTURE
As on: 26.09.2012
Authorised Capital : Rs.230.000
Millions
Issued, Subscribed & Paid-up Capital : Rs.222.173 Millions
As on: 31.03.2013
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
500000 |
Equity Shares |
Rs.1/- each |
Rs.0.500 Million |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
500000 |
Equity Shares |
Rs.1/- each |
Rs.0.500 Million |
|
|
|
|
|
a) Reconciliation of the shares outstanding at
the beginning and at the end of the reporting period
|
|
No. of Shares |
Rs. In Millions |
|
Equity Shares |
|
|
|
At the beginning of the year |
500000 |
0.500 |
|
Issued during the year |
- |
- |
|
Outstanding at the end of the year |
500000 |
0.500 |
b) Terms/Rights
attached to the Equity Shares
The company has only one class of equity shares having par value of Rs. 1/- per share. Each holder of equity shares is entitled to one vote per share. The company declares and pays dividend in India rupees.
In the event of liquidation of the company, the holders of equity shares will be entitled to receive remaining assets of the company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.
c) Details of
Shareholders holding more than 5% shares in the company
|
|
No. of Shares |
% holding in the
class |
|
Equity Shares of Rs. 1/- each fully paid-up |
|
|
|
Century Plyboards (India) Limited |
500000 |
100.00% |
# The existing share capital to be cancelled upon allotment of shares pursuant to Scheme of Arrangement
As per of the Company, including its register of shareholders/members, the above shareholding represents legal ownerships of shares.
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
EQUITY AND LIABILITIES |
|
|
|
|
(1)Shareholders' Funds |
|
|
|
|
(a) Share Capital |
0.500 |
0.500 |
0.500 |
|
(b) Share Capital – Pending Allotment |
221.673 |
0.000 |
0.000 |
|
(c) Reserves & Surplus |
838.917 |
(0.010) |
(0.007) |
|
(d) Money received against share warrants |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
(2) Share Application money pending allotment |
0.000 |
0.000 |
0.000 |
|
Total Shareholders’
Funds (1) + (2) |
1061.090 |
0.490 |
0.493 |
|
|
|
|
|
|
(3) Non-Current
Liabilities |
|
|
|
|
(a) long-term borrowings |
103.637 |
0.000 |
0.000 |
|
(b) Deferred tax liabilities (Net) |
0.000 |
0.000 |
0.000 |
|
(c) Other long term liabilities |
33.699 |
0.000 |
0.000 |
|
(d) long-term provisions |
2.093 |
0.000 |
0.000 |
|
Total Non-current Liabilities
(3) |
139.429 |
0.000 |
0.000 |
|
|
|
|
|
|
(4) Current
Liabilities |
|
|
|
|
(a) Short term borrowings |
215.133 |
0.000 |
0.000 |
|
(b) Trade payables |
87.173 |
0.006 |
0.000 |
|
(c) Other current liabilities |
29.989 |
0.000 |
0.037 |
|
(d) Short-term provisions |
0.889 |
0.000 |
0.000 |
|
Total Current
Liabilities (4) |
333.184 |
0.006 |
0.037 |
|
|
|
|
|
|
TOTAL |
1533.703 |
0.496 |
0.530 |
|
|
|
|
|
|
ASSETS |
|
|
|
|
(1) Non-current
assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i) Tangible assets |
343.947 |
0.000 |
0.000 |
|
(ii) Intangible Assets |
0.140 |
0.000 |
0.000 |
|
(iii) Capital work-in-progress |
1.959 |
0.000 |
0.000 |
|
(iv) Intangible assets under development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current Investments |
632.825 |
0.000 |
0.000 |
|
(c) Deferred tax assets (net) |
20.773 |
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
9.887 |
0.000 |
0.000 |
|
(e) Other Non-current assets |
0.000 |
0.000 |
0.000 |
|
Total Non-Current
Assets |
1009.531 |
0.000 |
0.000 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a) Current investments |
0.000 |
0.000 |
0.000 |
|
(b) Inventories |
282.296 |
0.000 |
0.000 |
|
(c) Trade receivables |
114.777 |
0.000 |
0.000 |
|
(d) Cash and cash equivalents |
15.737 |
0.464 |
0.500 |
|
(e) Short-term loans and advances |
73.286 |
0.032 |
0.000 |
|
(f) Other current assets |
38.076 |
0.000 |
0.030 |
|
Total Current
Assets |
524.172 |
0.496 |
0.530 |
|
|
|
|
|
|
TOTAL |
1533.703 |
0.496 |
0.530 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
648.537 |
0.000 |
0.000 |
|
|
|
Other Income |
0.039 |
0.020 |
0.000 |
|
|
|
TOTAL (A) |
648.576 |
0.020 |
0.000 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of Raw Materials Consumed |
250.379 |
0.000 |
0.000 |
|
|
|
(Increase)/Decrease in inventories of Finished Goods |
(50.115) |
0.000 |
0.000 |
|
|
|
Employee Benefits Expense |
37.722 |
0.000 |
0.000 |
|
|
|
Other Expenses |
411.898 |
0.023 |
0.007 |
|
|
|
TOTAL (B) |
649.884 |
0.023 |
0.007 |
|
|
|
|
|
|
|
|
Less |
PROFIT/
(LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
(1.308) |
(0.003) |
(0.007) |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
20.178 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
(21.486) |
(0.003) |
(0.007) |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
55.163 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
|
|
PROFIT/ (LOSS)
BEFORE TAX (E-F) (G) |
(76.649) |
(0.003) |
(0.007) |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
(20.773) |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
|
|
PROFIT/ (LOSS)
AFTER TAX (G-H) (I) |
(55.876) |
(0.003) |
(0.007) |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
(0.010) |
(0.007) |
0.000 |
|
|
|
|
|
|
|
|
|
|
BALANCE CARRIED
TO THE B/S |
(55.886) |
(0.010) |
(0.007) |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
|
|
|
|
|
|
Basic |
(111.75) |
(0.01) |
(0.14) |
|
|
|
Diluted |
(0.25) |
(0.01) |
(0.14) |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
PAT / Total Income |
(%) |
(8.62) |
(15.00) |
0.00 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
(11.82) |
0.00 |
0.00 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
(8.73) |
(0.60) |
(1.32) |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
(0.07) |
(0.01) |
(0.01) |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
0.30 |
0.00 |
0.00 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.57 |
82.67 |
14.32 |
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 |
No |
|
8] |
No. of employees |
No |
|
9] |
Name of person contacted |
Yes |
|
10] |
Designation of contact person |
Yes |
|
11] |
Turnover of firm for last three years |
Yes |
|
12] |
Profitability for last three years |
Yes |
|
13] |
Reasons for variation <> 20% |
-- |
|
14] |
Estimation for coming financial year |
No |
|
15] |
Capital in the business |
Yes |
|
16] |
Details of sister concerns |
Yes |
|
17] |
Major suppliers |
No |
|
18] |
Major customers |
No |
|
19] |
Payments terms |
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 |
No |
UNSECURED LOAN
(Rs.
In Millions)
|
Particular |
As on 31.03.2013 |
As on 31.03.2012 |
|
SHORT TERM
BORROWINGS |
|
|
|
Short Term Loan from Bodies Corporate |
20.000 |
0.000 |
|
From Bodies Corporate |
76.000 |
0.000 |
|
|
|
|
|
Total |
96.000 |
0.000 |
Notes:
Note: No Charges Exist for Company
PERFORMANCE AND
OPERATIONS REVIEW
The performance of the Ferro alloy unit remained subdued during the first three quarters of the financial year mainly due to global market scenario but there has been increase in demand of Ferro alloys during the last quarter along with significant improvement in the overall performance.
During the year the Ferro alloy division has completed its capacity expansion from 18MVA Furnaces to 27 MVA Furnaces. However, due to poor demand and power shortage, the unit has been able to utilize only 59% of its enhanced capacity. The production quantity during the year was 9462.834 MT only, yet the team needs to be appreciated for achieving this level of production in-spite of unprecedented power crisis due to unavailability of coal to run the captive power plant.
The first quarter of the year was also partly under the influence of lingering after-effects of Global Meltdown experienced during previous years. But gradually, with the depletion of stock piles across the world due to shutdown of Ferro alloy facilities, the demand of Ferro Alloys has slowly picked up.
The Consolidated clinker production of the Company's subsidiaries was 8,35,576 MT registering a growth of 16.90% over the previous year. The Consolidated cement production, on the hand was 10,67,465 MT as against 11,03,800 MT during last financial year, a drop of little over 3% compared to the previous year. Consolidated sales of cement was 10,65,097 MT of Cement as against 11,06,422 MT during the previous year, depicting a marginal drop of approximately 4%. Consolidated Gross Income during the year was Rs. 6954.515 Millions while Net Profit after minority interest was Rs. 249.202 Millions.
FUTURE OUTLOOK
The Indian Ferro Alloy industry has a capacity of 5.15 million tonnes. It is accounting for nearly 10% of the world's Ferro alloy production and is among the 10 largest producers of the material in the world. In the midst of raw material availability being a key factor for Ferro alloy industry growth, production is concentrated in a few pockets. India, South Africa, China and the CIS countries represent a large source for Ferro alloys. India's Ferro alloy supply constitutes of Ferro chrome about 32%, Ferro Manganese and Silicon Manganese about 62% and rest others.
Ferro Alloy Industry mainly caters to the needs of steel industry. Ferro alloys are used as additives and deoxidizing agents in steel manufacture. At present, though there is surplus capacity in the country, severe power cuts is hampering the production.
Ferro Alloy producers across the globe in last couple of years was also one of the worst hit in history, with drastic collapse in demand and vertical fall in prices of finished products. After a couple of difficult years, well-coordinated efforts at the global level and various stimulus packages (policy, fiscal and monetary) have helped to put the world economy back on track.
Strong growth in steel and stainless steel is expected in the near future with strong demands in infrastructure industry. And it is expected that the excess capacity will be absorbed and further growth is anticipated in Ferro alloys Industry in the years to come to match the growth of Steel Industry. In view of potential growth of housing and infrastructure, the overall demand for Ferro alloy is expected to remain buoyant.
FUTURE PLANS OF
EXPANSION
To meet the requirement of coal for its captive power plant, the Company has started mining operations in the State of Nagaland and the operation is expected to yield results in the coming years. In order to further reduce the power costs, the Company is exploring the prospects of hydel power project in the State of Mizoram.
Further, steps have also been taken for iron ore mining at Chanderdigha in Assam to meet the mill scale requirement for production of Ferro Silicon.
MANAGEMENT DISCUSSION
AND ANALYSIS
INDUSTRY STRUCTURE
AND DEVELOPMENT
The Indian Ferro Alloy industry has a capacity of 5.15 million tonnes. It is accounting for nearly 10% of the world's Ferro alloy production and is among the 10 largest producers of the material in the world. In the midst of raw material availability being a key factor for Ferro alloy industry growth, production is concentrated in a few pockets. India, South Africa, China and the CIS countries represent a large source for Ferro alloys. India's Ferro alloy supply constitutes of Ferro chrome about 32%, Ferro Manganese and Silicon Manganese about 62% and rest others.
Ferro Alloy Industry mainly caters to the needs of steel industry. Ferro alloys are used as additives and deoxidizing agents in steel manufacture. At present, though there is surplus capacity in the country, severe power cuts is hampering the production.
Ferro Alloy producers across the globe in last couple of years was also one of the worst hit in history, with drastic collapse in demand and vertical fall in prices of finished products. After a couple of difficult years, well-coordinated efforts at the global level and various stimulus packages (policy, fiscal and monetary) have helped to put the world economy back on track.
Strong growth in steel and stainless steel is expected in the near future with strong demands in infrastructure industry. And it is expected that the excess capacity will be absorbed and further growth is anticipated in Ferro alloys Industry in the years to come to match the growth of Steel Industry. In view of potential growth of housing and infrastructure, the overall demand for Ferro alloy is expected to remain buoyant.
OPPORTUNITIES AND
THREATS
Ferro Alloy
The company's ferro alloy unit is situated in Meghalaya, where there is abundant availability of raw material. The only problem which can disrupt production is availability of power, as of the unit from 18MVA Furnaces to 27 MVA Furnaces, the company plans to achieve full capacity utilization which further increases the requirement of power. In order to combat this problem, the company has installed a 13.8MW captive power plant to ensure un-interrupted production. Since the last quarter, the unit has also started purchasing power from Indian Energy Exchange to meet the shortfall in power.
The Company's strategic moves and proactive measures in the direction of maintaining minimum stock, minimization of power costs, optimization of raw material consumption norms and other elements of operational cost, balanced focus on markets, etc. will surely help in achieving full scale and efficient operations in the coming year.
Cement
India being a fast developing country and Cement being one of the core industry plays a vital role in the growth and development of a nation. Indian Cement industry occupies an important place in the Indian economy. Indian cement industry has transited itself into a more advanced, keeping in line with the technological world and is currently positioned second globally. This has offered advantages to the industry. There are 139 large cement plants and over 365 mini cement plants in India, with currently more than 40 players in the industry.
Rapid Development in Real estate, construction and infrastructure sector coupled with the ever increasing industrial activities, in addition to the onset of various Special Economic Zones (SEZs) being developed across the country, there is a huge demand for cement. The industry is not only meeting the requirements arising within the domestic market but also fulfilling the burgeoning demands of the international arena. India is also exporting good amount of cement clinker and by products of cement. The cement sector has attracted foreign direct investments also. In the backdrop of above, the growth momentum in Indian Cement industry is likely to continue in years to come.
India's North Eastern region is still far behind as far as connectivity by Rail and Road is concerned as compared to other states of their country. However, NER so rich with natural resources has not been able to catch up with the pace of development which has taken place in rest of India. Important parameters like Per Capita Gross State Domestic Product (GSDP), Per Capita Electricity Consumption, Per Capita income of NER as compared to rest of India also suggests that a lot of efforts are still required to be put for the socio-economic development of the region. Keeping this wide gap into consideration, the Central Government, in the recent past, has been focusing on the development of NER and budgetary allocation for development of the region has seen increasing trend year after year.
During the year there has been modest increase in Cement Demand in NER. However, they firmly believe that the demand of cement will again surpass the growth compared to national demand in coming years as many infrastructure projects have now started in real term. The Assam - Manipur Rail link work is in full swing. Central Government Hydel power project and Private sector both are also coming up as per plans. Major consumption area like housing, road, airport and rail will drive the demand further.
The company's major subsidiary Cement Manufacturing Company Limited (CMCL) and its subsidiary Megha Technical and Engineers Private Limited (MTEPL) are having their cement and clinker units situated at Lumshnong in Meghalaya and both CMCL and MTEPL sell their cement under the brand name 'STAR CEMENT'. STAR CEMENT is one of the leading and the highest selling cement brand in the North Eastern part of the country. CMCL has the advantage of its own captive lime stone mines and is situated at a close proximity of large reserves of coal at a distance of only 25 kms. CMCL's lime stone mines has reserves of 300 Million Tonnes, enough to meet all its' raw material requirements (based on expanded capacity) for the next 70 years. The unit is also entitled to various fiscal incentives as per the North East policy of the Central Government and the State Government. The unit uses state of the art dry process rotary kiln technology and manufactures high grade Ordinary Portland Cement (OPC), Pozzol and Portland Cement (PPC) and other specialty grades required for infrastructure projects.
Despite various challenges on the economic front and slowdown in cement demand during second half of FY 2012-13, CMCL has been able to sustain its operations almost at last fiscal's level. During the year it has produced 758,175 MT of Cement Clinker and 489,229 MT of Cement and its subsidiary MTEPL has produced 578,236 MT of Cement.
During last quarter of FY 2012-13 CMCL's new grinding unit at Guwahati and new Cement Clinker manufacturing unit of M/s. Star Cement Meghalaya Limited (SCML), subsidiary of CMCL also commenced their commercial operations and their operations are getting stabilized. On consolidated basis, CMCL has been able to produce 835,576 MT of Cement Clinker.
With the above mentioned expansions, the present combined capacity of CMCL and its subsidiaries is now 2.80 MTPA of Cement. Also, during the year, Meghalaya Power Limited, subsidiary of CMCL and also an associated company of their has completed its second phase of setting up of 51 MW Power plant. With this there is expected to be no power crisis for CMCL and its subsidiaries, MTEPL and SCML.
Cement is considered to be a cyclical industry. Addition of new capacities particularly in north east may tilt industry more towards supply situation. Cement is highly capital intensive and fairly long gestation industry. The expansion plans may make the company very high leveraged to face any demand set back.
With strong brand image and expansions, the company does not expect to face any problem in near and fairly distant future.
SEGMENT-WISE OR
PRODUCT-WISE PERFORMANCE
Ferro Alloys
Ferro Alloys segment posted a turnover of Rs. 683.058 Millions in 2012-13.
Power
Power segment posted a turnover of Rs. 794.900 Millions in 2012-13 with segment profit of Rs. 105.880 Millions.
Cement
The cement capacities run by company's subsidiaries also posted impressive performance with a turnover of Rs. 6225.256 Millions. Segment profit was posted at Rs. 725.239 Millions.
OUTLOOK
The Company's and its subsidiaries' products are Cement and Ferro Alloys, demand for which is linked to infrastructure and real estate sector. In view of improved economic situation and the Government's thrust towards infrastructure and real estate activities, the company is hopeful to achieve better results and attain growth. With modern plants, latest technologies, and precious brands the products of the Company are positioned to fully exploit emerging opportunities.
CONTINGENT
LIABILITIES
(Rs. In Millions)
|
Particular |
31.03.2013 |
|
Contingent
Liabilities not provided for in respect of: |
|
|
(a) Bills discounted with banks |
85.577 |
FIXED ASSETS
Tangible Assets
Intangible Assets
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 records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent
government authority for any violation of anti-corruption laws or international
anti-money laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.61.51 |
|
|
1 |
Rs.99.29 |
|
Euro |
1 |
Rs.83.68 |
INFORMATION DETAILS
|
Information
Gathered by : |
SVA |
|
|
|
|
Report Prepared
by : |
VRN |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
3 |
|
PAID-UP CAPITAL |
1~10 |
4 |
|
OPERATING SCALE |
1~10 |
3 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
4 |
|
--PROFITABILIRY |
1~10 |
3 |
|
--LIQUIDITY |
1~10 |
3 |
|
--LEVERAGE |
1~10 |
4 |
|
--RESERVES |
1~10 |
4 |
|
--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 |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
DEFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
|
|
|
|
TOTAL |
|
31 |
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.