MIRA INFORM REPORT
|
Report Date : |
22.10.2013 |
IDENTIFICATION DETAILS
|
Name : |
SESA STERLITE LIMITED (w.e.f. 18.09.2013) |
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Formerly Known
As : |
SESA GOA LIMITED |
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Registered Office
: |
Sesa Ghoar, P O Box 125, 20 EDC Complex, Patto, Panjim – 403001, Goa |
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Country : |
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Financials (as
on) : |
31.03.2013 |
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Date of
Incorporation : |
25.06.1965 |
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Com. Reg. No.: |
24-000044 |
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Capital Investment
/ Paid-up Capital : |
Rs. 869.100 millions |
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CIN No.: [Company Identification
No.] |
L13209GA1965PLC000044 |
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TAN No.: [Tax Deduction &
Collection Account No.] |
BLRS14062G |
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PAN No.: [Permanent Account No.] |
AACCS7101B |
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Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchange. |
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Line of Business
: |
Producer
and Exporter of |
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|
No. of Employees
: |
3857 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (51) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD 520000000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
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Litigation : |
Exists |
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Comments : |
Subject is a part of “Vedanta Resources PLC”. It is a well established
and reputed company having a satisfactory track record. The company has seen a drastic fall in its sales turnover as well as
net profitability during 2013. Due to temporary suspension of mining
operations in Goa with effect from September 11, 2012. The ratings take into consideration the approved group restructuring
process which may help the subject to diversify its business risk profile. The market conditions of the mining industry seems to be unfavorable
in India. The company is also facing some difficulties due to the changes in
government regulations. However, financial position of the company is strong and sound. Trade
relations are fair. Business is active. Payment terms are reported as regular
and as per commitments. The company can be considered normal for business dealings at usual
trade terms and conditions. |
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.
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CRISIL |
|
Rating |
Long term rating : AA+ |
|
Rating Explanation |
High degree of safety and very low credit risk. |
|
Date |
17 October 2013 |
|
Rating Agency Name |
CRISIL |
|
Rating |
Short term rating : A1+ |
|
Rating Explanation |
Strong degree of safety and Carry lowest credit risk. |
|
Date |
17 October 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 is not enlisted as a defaulter
in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of
31-03-2012.
INFORMATION DECLINED
Management Non – Cooperative (91-832-2460600)
LOCATIONS
|
Registered Office : |
Sesa Ghoar, P O Box 125, 20 EDC Complex, Patto, Panjim – 403001, Goa, India |
|
Tel. No.: |
91- 832-2460600 |
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Fax No.: |
Not Available |
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E-Mail : |
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Website : |
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Codli Mine, P.O.
Kirlapale, Dabal, Goa - 403706 India |
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Tel. No.: |
91-832-2617200 |
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Fax No.: |
91-832-2618280 |
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Iron Ore Division II: |
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Shipping: |
Queeny Elite, 1st Floor Swatantrapath, Vasco Da Gama, Goa - 403802 India |
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Tel. No.: |
91-832-2513053 |
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Fax No.: |
91-832-2511916 |
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Coke Plant: |
MetCoke Division, P.O. Bicholim, Amona, Goa - 403505 India |
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Tel. No.: |
91-832-3981400 |
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Pig Iron Plant: |
P.O. Bicholim, Amona, Goa 403107 India |
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Tel. No.: |
91-832-2386090 |
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Ship Building: |
Sirsaim, Tivim Bardez Goa 403502 India |
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Tel. No.: |
91-832-2298357 |
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Fax No.: |
91-832-2298439 |
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Sesa Community: |
Development Foundation - NCM Sesa Technical School, - Sesa Football Academy, P.O. Sanquelim, Goa 403505 India |
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Tel. No.: |
91-832-2365509 |
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|
Iron Ore Division” |
Locate at
|
DIRECTORS
As on 31.03.2013
|
Name : |
Mr. Kuldip K Kaura |
|
Designation : |
Independent and
Non-Executive Director |
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|
Name : |
Mr. Gurudas D Kamat |
|
Designation : |
Independent
Non-Executive Director |
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Name : |
Mr. Jagdish P Singh |
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Designation : |
Independent
Non-Executive Director |
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Name : |
Mr. Ashok Kini |
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Designation : |
Independent Non-Executive Director |
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Name : |
Mr. Amit Pradhan |
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Designation : |
Whole-time Director |
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Date of Birth/Age : |
57 Years |
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Qualification : |
M.Sc.(Physics) |
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Experience : |
34 Years |
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Date of Appointment : |
15.01.1990 |
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|
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|
Name : |
Mr. Prasun K Mukherjee |
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Designation : |
Managing Director |
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Date of Birth/Age : |
56 Years |
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Qualification : |
B.Com (Hons.) F.C.A., A.I.C.W.A. |
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Experience : |
33 Years |
|
Date of Appointment : |
14.04.1987 |
KEY EXECUTIVES
|
Name : |
C. D. Chitnis |
|
Designation : |
Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 29.08.2013
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding of Promoter and Promoter Group |
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|
|
|
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|
500496 |
0.02 |
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|
121740 |
0.00 |
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|
622236 |
0.02 |
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|
|
|
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|
1628741709 |
60.87 |
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|
1628741709 |
60.87 |
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Total shareholding of Promoter and Promoter Group (A) |
1629363945 |
60.89 |
|
(B) Public Shareholding |
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|
70745479 |
2.64 |
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|
115042986 |
4.30 |
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|
1680 |
0.00 |
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|
34595210 |
1.29 |
|
|
496434846 |
18.55 |
|
|
716820201 |
26.79 |
|
|
|
|
|
|
85860218 |
3.21 |
|
|
|
|
|
|
166339248 |
6.22 |
|
|
23056471 |
0.86 |
|
|
54539904 |
2.04 |
|
|
5195925 |
0.19 |
|
|
44081725 |
1.65 |
|
|
2501286 |
0.09 |
|
|
7794 |
0.00 |
|
|
2000 |
0.00 |
|
|
2728068 |
0.10 |
|
|
5467 |
0.00 |
|
|
1800 |
0.00 |
|
|
15839 |
0.00 |
|
|
329795841 |
12.32 |
|
Total Public shareholding (B) |
1046616042 |
39.11 |
|
Total (A)+(B) |
2675979987 |
100.00 |
|
(C) Shares held by Custodians and against which Depository Receipts
have been issued |
0 |
0.00 |
|
|
99292711 |
0.00 |
|
|
189401789 |
0.00 |
|
|
288694500 |
0.00 |
|
Total (A)+(B)+(C) |
2964674487 |
0.00 |
BUSINESS DETAILS
|
Line of Business : |
Producer
and Exporter of Iron Ore |
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Products : |
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GENERAL INFORMATION
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No. of Employees : |
3857 (Approximately) |
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Bankers : |
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Facilities : |
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Banking
Relations : |
-- |
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Auditors : |
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Name : |
Deloitte Haskins and Sells Chartered Accountants |
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Address : |
Tower 3, 27th - 32nd
Floor, Indiabulls Finance Centre, Eiphinstone Mill Compound, Senapati Bapat
Marg, Elphinstone (West), Mumbai – 400 013, India |
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Tel. No.: |
91-22-61854000 |
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Fax No.: |
91-22-61854501/4601 |
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Ultimate Holding company: |
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Intermediaries: |
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Associate (and an indirect subsidiary of the ultimate holding company): |
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Jointly Controlled Entity: |
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Fellow Subsidiaries: |
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Enterprise in which significant influence is exercised by Key
Management Personnel: |
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CAPITAL STRUCTURE
As on 31.03.2013
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
1000000000 |
Equity Shares |
Re. 1/- each |
Rs. 1000.000 millions |
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|
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|
|
Issued, Subscribed & Paid-up Capital:
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
869101423 |
Equity Shares |
Re. 1/- each |
Rs. 869.100
millions |
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|
|
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|
NOTE:
|
There has been no movement in the equity
shares outstanding at the beginning and at the end of the year Rights, preferences and restrictions attached to equity shares The Company has only one class of shares referred
to as equity shares having a par value of Rs.1 each. Each |
Shareholder is eligible for one vote per
share held. The dividend proposed by the Board of Directors
is subject to the approval of the shareholders in the ensuing Annual General Meeting,
except in case of interim dividend which is paid as and when declared by the
Board. Repayment of capital, if any, will be in proportion to the number of
equity shares held |
Shares held by ultimate holding company and its intermediaries
|
Particulars |
March 31, 2013 |
|
|
|
Number of Shares |
% of Holding |
|
|
|
|
|
Finsider International Company Limited |
401,496,480 |
46.20 |
|
West Globe Limited |
44,343,139 |
5.10 |
|
Twinstar Holdings Limited |
33,274,000 |
3.83 |
All the above entities are subsidiaries of
Vedanta Resources plc. Accordingly, Vedanta Resources plc. is the ultimate
holding company.
Details of shareholders holding more than 5% shares in the Company other
|
Particulars |
March 31, 2013 |
|
|
|
Number of Shares |
% of Holding |
|
|
|
|
|
Franklin Templeton Investment Funds |
85,073,669 |
9.79 |
Aggregate number of bonus shares issued and shares issued for
consideration other than cash during the period of five years immediately preceding
the reporting date
|
Particulars |
March 31, 2013 Number of Shares |
|
|
|
|
Equity shares allotted as fully paid-up shares for consideration other
than cash pursuant to a scheme of amalgamation |
9,398,864 |
|
Equity shares allotted as fully paid-up bonus shares by way of
capitalisation of reserves and securities premium account |
393,620,200 |
Terms of securities convertible into equity shares
For shares to be issued on conversion of Foreign
Currency Convertible Bonds
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
I.
EQUITY
AND LIABILITIES |
|
|
|
|
(1)Shareholders' Funds |
|
|
|
|
(a) Share Capital |
869.100 |
869.100 |
869.100 |
|
(b) Reserves & Surplus |
129368.800 |
128262.800 |
115019.000 |
|
(c) Money
received against share warrants |
0.000 |
0.000 |
0.0000 |
|
|
|
|
|
|
(2) Share Application money pending
allotment |
0.000 |
0.000 |
0.000 |
|
Total
Shareholders’ Funds (1) + (2) |
130237.900 |
129131.900 |
115888.100 |
|
|
|
|
|
|
(3)
Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
11791.600 |
11090.700 |
9680.100 |
|
(b) Deferred tax liabilities (Net) |
104.000 |
851.000 |
631.000 |
|
(c) Other long term
liabilities |
23.200 |
27.000 |
775.100 |
|
(d) long-term
provisions |
18.100 |
17.200 |
43.300 |
|
Total Non-current
Liabilities (3) |
11936.900 |
11985.900 |
11129.500 |
|
|
|
|
|
|
(4)
Current Liabilities |
|
|
|
|
(a) Short
term borrowings |
33223.800 |
24900.600 |
33.100 |
|
(b) Trade
payables |
4702.000 |
7374.000 |
8771.600 |
|
(c) Other
current liabilities |
2429.200 |
2938.000 |
2160.300 |
|
(d) Short-term
provisions |
344.600 |
2050.600 |
3995.200 |
|
Total Current
Liabilities (4) |
40699.600 |
37263.200 |
14960.200 |
|
|
|
|
|
|
TOTAL |
182874.400 |
178381.000 |
141977.800 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1)
Non-current assets |
|
|
|
|
(a) Fixed
Assets |
|
|
|
|
(i)
Tangible assets |
14685.700 |
9831.400 |
7418.600 |
|
(ii)
Intangible Assets |
860.200 |
98.500 |
180.100 |
|
(iii)
Capital work-in-progress |
3633.000 |
6810.000 |
5045.400 |
|
(iv)
Intangible assets under development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current Investments |
145988.200 |
142248.700 |
17132.700 |
|
(c) Deferred tax assets (net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
4219.300 |
1628.800 |
1529.800 |
|
(e) Other
Non-current assets |
0.000 |
0.000 |
0.000 |
|
Total Non-Current
Assets |
169386.400 |
160617.400 |
31306.600 |
|
|
|
|
|
|
(2)
Current assets |
|
|
|
|
(a)
Current investments |
1277.000 |
1957.500 |
77505.400 |
|
(b)
Inventories |
7560.200 |
7572.900 |
6361.000 |
|
(c) Trade
receivables |
1404.400 |
4621.900 |
5068.800 |
|
(d) Cash
and cash equivalents |
248.800 |
720.100 |
8913.200 |
|
(e)
Short-term loans and advances |
2893.400 |
2891.200 |
12681.600 |
|
(f) Other
current assets |
104.200 |
0.000 |
141.200 |
|
Total
Current Assets |
13488.000 |
17763.600 |
110671.200 |
|
|
|
|
|
|
TOTAL |
182874.400 |
178381.000 |
141977.800 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
21879.200 |
65134.500 |
74930.800 |
|
|
|
Other Income |
3419.900 |
3863.300 |
5152.000 |
|
|
|
TOTAL (A) |
25299.100 |
68997.800 |
80082.800 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of materials consumed |
8204.900 |
5888.100 |
3973.500 |
|
|
|
Purchase of stock-in-trade |
1057.800 |
3670.100 |
5363.900 |
|
|
|
Changes in inventories of finished goods, work-in-progress and
stock-in-trade |
(2639.700) |
319.100 |
(121.300) |
|
|
|
Employee benefits expense |
1846.200 |
1914.400 |
1490.800 |
|
|
|
Other expenses |
9991.500 |
27297.300 |
23825.100 |
|
|
|
Exceptional item |
97.100 |
660.900 |
0.000 |
|
|
|
TOTAL (B) |
18557.800 |
39749.900 |
34532.000 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
6741.300 |
29247.900 |
45550.800 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
4692.300 |
4200.000 |
861.500 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
2049.000 |
25047.900 |
44689.300 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
1479.100 |
838.500 |
831.300 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
569.900 |
24209.400 |
43858.000 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
(637.800) |
7410.000 |
9530.000 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
1207.700 |
16799.400 |
34328.000 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
19621.000 |
11377.200 |
2977.000 |
|
|
|
|
|
|
|
|
|
|
TRANSFERRED ON
AMALGAMATION OF SESA INDUSTRIES LIMITED |
0.000 |
0.000 |
2834.800 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Interim dividend / Proposed Final dividend |
86.900 |
3476.400 |
3041.800 |
|
|
|
Tax on distributed profit |
14.800 |
79.200 |
493.500 |
|
|
|
Dividend for 2009-10 in respect of Foreign Currency Convertible Bonds
converted during the year |
0.000 |
0.000 |
98.500 |
|
|
|
Dividend to shareholders of erstwhile Sesa Industries Limited on amalgamation |
0.000 |
0.000 |
128.800 |
|
|
|
General Reserve |
50.000 |
5000.000 |
25000.000 |
|
|
BALANCE CARRIED
TO THE B/S |
20677.000 |
19621.000 |
11377.200 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export Earnings |
12125.900 |
51214.200 |
62589.300 |
|
|
|
Dispatch money |
30.800 |
93.100 |
177.400 |
|
|
|
Sale of Carbon Credits |
27.600 |
79.400 |
44.400 |
|
|
|
Other services |
0.500 |
0.000 |
0.000 |
|
|
TOTAL EARNINGS |
12184.800 |
51386.700 |
62811.100 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
3518.400 |
6972.200 |
5097.000 |
|
|
|
Components and spare parts |
205.700 |
139.200 |
172.100 |
|
|
|
Capital Goods |
1115.900 |
276.200 |
1111.700 |
|
|
TOTAL IMPORTS |
4840.000 |
7387.600 |
6380.800 |
|
|
|
|
|
|
|
|
|
|
Earnings Per Share
(Rs.) |
|
|
|
|
|
|
Basic |
1.39 |
19.33 |
39.98 |
|
|
|
Diluted |
1.39 |
19.33 |
39.30 |
|
QUARTERLY RESULTS
|
Particulars
|
30.06.2013 |
|
|
1st Quarterly |
|
Net Sales |
3657.600 |
|
Total
Expenditure |
4903.900 |
|
PBIDT (Excl OI) |
(1246.300) |
|
Other Income |
50.600 |
|
Operating Profit |
(1195.700) |
|
Interest |
1478.400 |
|
Exceptional
Items |
0.000 |
|
PBDT |
(2674.100) |
|
Depreciation |
305.100 |
|
Profit Before
Tax |
(2979.200) |
|
Tax |
(1060.000) |
|
Provisions and
contingencies |
0.000 |
|
Profit After Tax |
(1919.200) |
|
Extraordinary
Items |
0.000 |
|
Prior Period
Expenses |
0.000 |
|
Other
Adjustments |
0.000 |
|
Net Profit |
(1919.200) |
KEY RATIOS
|
PARTICULARS |
|
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
PAT / Total Income |
(%) |
4.77
|
24.35 |
42.87 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
2.60
|
38.96 |
58.53 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
1.71
|
82.56 |
36.61 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.44
|
0.19 |
0.38 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt /Networth) |
|
0.35
|
0.28 |
0.08 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
0.33
|
0.48 |
7.40 |
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 |
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 |
Yes |
|
23] |
Banking Details |
Yes |
|
24] |
Banking facility details |
Yes |
|
25] |
Conduct of the banking
account |
-- |
|
26] |
Buyer visit details |
-- |
|
27] |
Financials, if provided |
Yes |
|
28] |
Incorporation details, if
applicable |
Yes |
|
29] |
Last accounts filed at
ROC |
Yes |
|
30] |
Major Shareholders, if
available |
Yes |
|
31] |
Date of Birth of
Proprietor/Partner/Director, if available |
Yes |
|
32] |
PAN of
Proprietor/Partner/Director, if available |
No |
|
33] |
Voter ID No of
Proprietor/Partner/Director, if available |
No |
|
34] |
External Agency Rating,
if available |
Yes |
LITIGATION DETAILS
HIGH
COURT OF BOMBAY AT GOA
This Case is updated on : Thursday, September 05, 2013 |
||||||||||||||||||||||||||||
CHARGES
|
|
|||||
|
ENTITY |
PERSON |
COMPETENT AUTHORITY |
REGULATORY CHARGES |
REGULATORY ACTION
(S) / DATE OF ORDER |
FURTHER DEVELOPMENTS |
|
SESA GOA LIMITED |
|
SFIO |
SERIOUS BREACH OF COMPANIES ACT, 1956 |
CASES FILED BY SFIO AFTER OBTAINING SANCTION FOR
PROSECUTION ON THE BASIS OF INVESTIGATION REPORTS SUBMITTED BY SFIO |
|
|
SESA GOA LIMITED |
|
NSDL |
HIGH PENDING DEMAT REQUESTS |
PUT UP ON NSDL WEBSITE FOR PUBLIC NOTICE |
NOT APPEARING IN THE LIST DATED 24/06/2011 |
|
SESA GOA LIMITED |
|
CDSL |
HIGH PENDING DEMAT REQUESTS |
PUT UP ON CDSL WEBSITE FOR PUBLIC NOTICE |
NOT APPEARING IN THE LIST DATED 01/07/2011 |
|
|
|||||
UNSECURED LOAN
|
PARTICULARS |
31.03.2013 (Rs.
in Millions) |
31.03.2012 (Rs.
in Millions) |
|
Long-term Borrowings |
|
|
|
Foreign currency convertible bonds |
11791.600 |
11090.700 |
|
Short-term
borrowings |
|
|
|
Other loans and advances |
|
|
|
Packing credit in foreign currencies from banks |
9115.600 |
12794.000 |
|
Commercial paper [Maximum balance outstanding during the year Rs.3,0416.000 Millions (Previous year Rs.2,4697.500 Millions)] |
23521.400 |
11254.900 |
|
Buyers’ credit |
586.800 |
836.700 |
|
Total |
45015.400 |
35976.300 |
|
Note: During the year ended March 31, 2010, the Company had issued 5,000
Foreign Currency Convertible Bonds (“FCCBs”) aggregating USD 500 million at a
coupon rate of 5% (net to bondholder). The bondholders have an option to convert these FCCBs into shares, at
a conversion price of Rs.346.88 per share and at a fixed rate of exchange on
conversion of Rs.48.00 per USD 1.00 at any time on or after December 9, 2009.
The conversion price is subject to adjustment in certain circumstances.
Unless previously converted, redeemed or repurchased and cancelled, the FCCBs
fall due for redemption on October 31, 2014 at par. Upto March 31, 2013, 2,832 FCCB’s have been converted into 39,188,159
equity shares. No conversion has been made during the year. FCCB proceeds aggregating Rs.10408.600 Millions have been utilised for
the Company’s capital projects. |
||
SESA STERLITE – A
MERGER ANNOUNCEMENT
The Scheme of Amalgamation and Arrangement amongst Sterlite Industries
(India) Limited (SIIL), The Madras Aluminium Company Limited (MALCO), Sterlite
Energy Limited (SEL), Vedanta Aluminium Limited (VAL) with the Company, which
was announced last year has received approvals of respective company’s equity
shareholders, the Stock Exchanges in India and the Competition Commission of
India. Approval of Foreign Investment Promotion Board, respective company’s
equity shareholders and the Supreme Court of Mauritius approval for the merger
of Ekaterina Limited with the Sesa Goa Limited have been received. The High
Court of Mumbai at Goa has already approved both the mergers while the hearing
at the High Court of Madras has been completed and the order is awaited. The
Order of the Single Judge of High Court of Bombay at Goa approving both the
Schemes has been challenged before the Division Bench.
OPERATIONS
Iron Ore Business
2012-13 was a year of challenges for The Company – challenges
unprecedented in its history. In September / October 2012, the iron ore mining
operations in Goa were brought to a complete halt by an abrupt imposition of
ban on mineral extraction and transportation by the State Government and
subsequently by the Supreme Court. The Company’s entire iron ore mining
business is currently at a standstill in the State of Goa.
The Honourable Supreme Court of India has given clearance for resumption
of mining operations for A and B category mines in Karnataka subject to
statutory clearances, vide its order dated April 18, 2013. Sesa’s Karnataka mine
falls under B category, and the Company is in the process of securing necessary
statutory clearances to resume mining shortly.
The Ministry of Mines, Government of India, had constituted the Shah
Commission for inquiry into aspects of compliances for iron ore mining across
India in FY2011. Post the submission of Shah Commission report, in September
2012, the State Government of Goa, temporarily suspended the mining and
transportation of iron ore across the state of Goa. This was followed by an
Order from Ministry of Environment and Forest (MoEF) putting into abeyance the
Environmental Clearances for iron ore mines in Goa. Subsequently, a review by a
High Powered committee appointed by the State government was also ordered. In
October 2012, the Honourable Supreme Court suspended mining and transportation
of Iron ore across the State of Goa and ordered a review by the Centrally
Empowered Committee (CEC). In view of the foregoing, operations at the
Company’s mines in Goa have been remained suspended. The Company has filed an
application before the Supreme Court seeking modification or vacation of the
aforesaid order. The hearing in the Court is yet to commence effectively.
Despite the adverse circumstances during the year, the Company looks
ahead to an early resolution of these challenges. We continue to work on
furthering our internal systemic robustness and strengthening processes to
handle such challenges. In 2012, Sesa became the 1st Indian mining company to
implement automation using RFID technology. The Implementation covers all Sesa
Group companies. The RFID system identifies the vehicle using RFID tags across
the Sesa operations in Goa and Karnataka and links forest passes and Department
of Mines and Geology permits (in Karnataka) with truck information thereby
providing assurance and control. Sesa received Supply Chain Technology
Advancement award at the 2nd Asia Manufacturing Supply Chain Summit (AMCSCS)
for this implementation.
Spot prices witnessed a significant drop from August due to drop in demand
reaching a low of $83 per tonne (63% Fe FOB India) in early September from
about ~$130 per tonne at the start of the year. With the improved sentiment in
China, iron ore spot prices experienced a sharp recovery, December onwards,
reaching above $140 per tonne in February 2013, before showing slight softening
in March to reach $125 per tonne on March 31, 2013. The average spot iron ore
price for 2012-13 was about ~20% lower at US$ 120 per tonne (63% grade FOB
price) level, compared to about ~$150 per tonne in 2011-12.
Exploration
Exploration at the Liberian project combined with significant new
discoveries in India has resulted in the addition of 1.03 billion tonnes of Ore
Reserves and Mineral Resources (R and R) in 2012-13. This includes 966 mt of JORC
/ CRIRSCO certified R and R in Liberia and 59 mt net R and R addition in India.
Now operating in India and Liberia, Sesa has applied new thinking to old
deposits. Driven by the consistent focus on resource addition, the total R and
R in Goa and Karnataka has increased 3.6 times (net of depletion) over the last
5 years. During 2012-13, over 95,000 metres were drilled, with about 69,000 m
in Liberia and about 26,500 m in India. The R and R as on March 31, 2013 now
stands at 433 mt in India and 966 mt in Liberia (WCL), totalling to 1,399 mt
for Sesa group. These resources in Liberia pertain to only a portion of the
exploration license area. With a small part of the strike length explored as on
date, there is a potential for significant upside with focused drilling in
coming years.
Pig Iron and Met
Coke Business
The Value Addition Business achieved a new landmark in August 2012 with
the commissioning of the new 450 m 3 blast furnace enhancing the pig iron
production from 0.25 to 0.625 mtpa, making us the largest low phosphorous pig
iron facility in India. A 0.28 mtpa metallurgical coke plant, a 0.8 mtpa sinter
plant and a 30 MW power plant have also been commissioned as part of the
expansion project. The newly commissioned sintering facility would enable the
Pig Iron Division (PID) to partially meet its iron ore requirement with
sintered iron ore fines, resulting in significant cost savings and increasing
efficiencies.
Driven by the commissioning of new capacities, pig iron production
increased by 24% from 248,729 tonnes in 2011-12 to 307,775 tonnes in 2012-13.
The pig iron sales volume increased by 10% from 250,571 tonnes in
2011-12 to 275,119 tonnes in 2012-13, while gross sales revenue grew by 7.4% to
Rs.7840.000 Millions in 2012-13 from Rs. 7300.000 Millions in 2011-12. Profits
before interest, tax, dividends and other nonrecurring or non-allocable incomes
for the Pig iron business decreased from Rs.450.000 Millions in 2011-12 to Rs.
(93.000) Millions in 2012-13.
The metallurgical coke production increased by 29% to 331 kt in 2012-13
due to new capacities commissioned in Q2 FY2013. Sales volume of metallurgical
(met) coke increased by 20% to 301,889 tonnes in 2012-13 from 251,264 tonnes in
2011-12. External sales revenue increased by 1.4% to Rs.5580.000 Millions in
2012-13 from Rs.5500.000 Millions in 2011-12.
Sesa had applied for validation of its European patent in Germany, Italy
and the United Kingdom. During the year, The International Organisation for
Patent and Trademark Service confirmed the validity of the patent overruling
some objections raised by a German Company.
Outlook
The iron ore mining industry continues to face increasing challenges
with social licensing as a result of the competition for resources, and high prices
increasing social pressure on the extractive industries to share more and more
benefits with the society.
As far as the overall iron ore market is concerned, despite temporary
glitches, the theme of the emerging market super cycle remains unchanged, on
the demand front. Supply forecasts continue to remain complex on account of
supply disruptions due to regulatory concerns as in India, weather disruptions
as in Australian ports, continued structural challenges from cost inflations,
grade depletion and large uncertainty of project. However, in the longer term,
prices are forecast to be under pressure as and when supply picks up with
several new investments coming on stream, albeit supported by the phasing out
of high cost operations.
Despite all these challenges, the overall outlook for Sesa remains
positive. Sesa’s low cost operations in Goa and Karnataka are well placed to
sustain any cost or pricing pressures. The Supreme Court has already permitted
a conditional resumption of operations in Karnataka and the Company is in the
process of securing the statutory clearances for an early resumption of
operations. The expansion projects at pig iron and metallurgical coke
operations have been commissioned, with the sinter plant adding key strategic
ability to utilise iron ore fines. With the maiden resource estimate at Liberia
already announced, Sesa’s total reserves and resources exceed 1.4 billion
tonnes with a significant upside expected from hitherto untouched exploration
area in Liberia.
Corporate Information
Subject is a major producer and exporter of iron ore in the private
sector in India and has been in operation for more than six decades. The
Company is a majority owned and controlled subsidiary of Vedanta Resources plc,
the London listed FTSE 100 diversified metals and mining major. Sesa has been
involved in iron ore exploration, mining, beneficiation and exports. Sesa has
iron ore mining operations in Goa and Karnataka. It has 100% stake in Western
Cluster Limited, a Liberia based company engaged in developing the Western
Cluster Iron Ore Deposits into a large integrated iron ore project. Sesa is
also into manufacturing pig iron and metallurgical coke
BOARD OF DIRECTORS
Mr. Kuldip K
Kaurawas appointed Director of Sesa Goa limited on October 30, 2007. Mr. Kaura
is the chief executive Officer and Managing Director of ACC Limited. Prior to
this, he was the Director and Chief Executive Officer of Vedanta from March
2005 to September 2008, and before that, chief Operating Officer of Vedanta
Resources Plc. and Managing Director of Sterlite industries (India) Limited.,
and from april 2002 to March 2004, Managing Director of Hindustan Zinc limited.
Before joining the Vedanta group, he was with ABB India for 18 years and was
the Managing Director and country Manager from 1998 to 2001. He has served as a
member of the national council of confederation of indian industries and is an
office-bearer of other such professional bodies. Mr. Kaura is a Bachelor of
engineering (Hons) in Mechanical engineering (1968) from Birla institute of
technology and Science, Pilani.
Mr. Gurudas D
Kamatwas appointed as the Director of Sesa Goa limited on December 23, 2005. Mr.
Kamat retired as the Chief Justice of Gujarat High Court in January 1997 and is
engaged in judicial work relating to arbitration and conciliation. He has over
47 years of experience in legal practice and judiciary, having practiced in
Bombay and Goa in various branches of law. He was the prosecutor for the
Government of Goa during 1967-69. During 1978-80, he was a member of the senate
and faculty of law of Bombay university. Since 1980, he has been an advocate
for the customs and central excise Departments of the Government of India. Mr.
Kamat was appointed a judge of the Bombay High court on november 29, 1983.
Mr. Jagdish P
Singhwas appointed as Director of Sesa Goa limited on July 19, 2010. Mr. Singh
is a distinguished civil servant with over 38 years of executive experience in
key positions in the union and State Governments. He has occupied varied positions
in his career, as a district and divisional administrator and as a chief
executive and chairman of the Board of numerous corporate bodies. He has turned
around several State and central corporations in the tourism, infrastructure,
cooperative finance, mining and mineral exploration sectors and initiated
measures for amendments in labour laws. He shaped the new national Mineral
Policy in 2008 and piloted its passage. widely ravelled internationally having
led delegations to multilateral bodies and conventions, he has also conducted
bilateral and country-specific discussions to further joint economic activities
with South africa, australia and indonesia. Mr. Singh is an alumnus of the
Harvard university, where he attended the Kennedy School of Government as a
Mason Fellow. He also holds a Master’s degree from the university of allahabad.
Mr. Ashok Kiniwas appointed as
Director of Sesa Goa limited on January 24, 2011. He retired as the Managing
Director of State Bank of india in December 2005, after serving the bank for 38
years in various capacities. He has directed the bank’s forays in domestic
distribution, retail business, consumer banking and marketing / brand
management and was instrumental in the bank’s itprogramme implementation, from
conceptualising to execution. He is currently on the boards of indusind Bank
limited, Gulf Oil corporation limited, uti asset Management company and
Financial inclusion network and Operations limited. Mr. Kini is a Post Graduate
from Madras christian college, chennai.
Mr. Amit Pradhanis an executive
Director of Sesa Goa limited since July 1, 2000. Mr. Pradhan is currently
responsible for the group’s value addition business, pig iron, met coke and
power. He joined Sesa in January 1990 as Manager – Purchase, and has 34 years
of experience in materials / project management and business development. Mr.
Pradhan holds a Master’s degree in Science (Physics) from the indian institute
of technology, Delhi.
Mr. Prasun K
Mukherjeehas been serving as the Managing Director of Sesa Goa limited since april 2006. Mr. Mukherjee was inducted in the
Board on July 1, 2000, as Director – Finance, and has 33 years of experience in
finance, accounts, costing, taxation, legal and general management. He was
rated as one of India’s Best Chief Financial Officers (CFOs) in 2005 by
Business today magazine and in 2009, Business world magazine declared him as
India’s most valueable ceO. Mr. Mukherjee holds a Bachelor of Commerce (Hons)
degree from calcutta university. He is a fellow member of the institute of
chartered accountants of India and an associate member of the institute of cost
and works accountants of India.
STATEMENT
OF UNAUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED 30TH JUNE, 2013
(Rs. In Millions)
|
S. |
Particulars |
Quarter Ended 30.06.2013 |
|
No. |
|
|
|
|
|
|
|
1 |
Income from Operations (a) Sales
/ Income from operations |
3846.600 |
|
|
Less:
Excise duty |
249.700 |
|
|
|
3596.900 |
|
|
Less:
Ocean freight |
4.600 |
|
|
|
3592.300 |
|
|
(b) Other
operating income |
65.300 |
|
|
Total
income from operations (net) |
3657.600 |
|
2 |
Expenses |
|
|
|
|
|
|
(a) Cost of materials consumed |
2169.900 |
|
|
(b) Purchase of ore |
0.000 |
|
|
(c) Changes in inventories of finished goods,
work- in-progress and stock in trade |
676.700 |
|
|
(d) Employee
benefits expense |
407.200 |
|
|
(e) Consumption of stores |
171.700 |
|
|
(f) Contractors for inland transportation
and other |
|
|
|
|
- Inland transportation |
62.100 |
|
- Other services |
216.3700 |
|
|
(g) Export duty |
0.000 |
|
|
(h) Depreciation and amortisation expense |
305.100 |
|
|
(i) Other expenses |
208.100 |
|
|
(j) Net
(gain) / loss on foreign currency transactions and translations |
991.500 |
|
|
|
Less:
Costs / expenses recovered |
0.000 |
|
|
Total
expenses |
5209.000 |
|
3 |
Profit / (loss) from operations before
other income, finance costs and exceptional items (1-2) |
(1551.400) |
|
4 |
Other
income |
50.600 |
|
5 |
Profit / (loss) from ordinary activities
before finance costs and exceptional items (3+4) |
(1500.800) |
|
6 |
Finance
costs |
1478.400 |
|
7 |
Profit / (loss) from ordinary activities
after finance costs but before exceptional items (56) |
(2979.200) |
|
8 |
Exceptional
items |
-- |
|
9 |
Profit / (loss) from ordinary activities
before tax (7-8) |
(2979.200) |
|
10 |
Tax
expense |
(1060.000) |
|
11 |
Net Profit / (loss) from ordinary
activities after tax (9 - 10) |
(1919.200) |
|
12 |
Share of
profit of an associate |
-- |
|
13 |
Net profit / (loss) after taxes and share
of profit/(loss) of an associate (11+12) |
(1919.200) |
|
14 |
Paid up
equity capital (Face value Re.1) |
869.100 |
|
15 |
Reserves
excluding Revaluation Reserves as per |
-- |
|
|
balance
sheet of previous accounting year |
-- |
|
16 |
Earnings
per share (of Re. 1 each) before and after |
|
|
|
extraordinary
items [*Not annualised] |
|
|
|
- Basic |
(2.21) |
|
|
- Diluted |
(2.21) |
|
|
|
|
|
S. |
PARTICULARS |
|
|
No. |
|
|
|
|
|
|
|
A |
PARTICULARS
OF SHAREHOLDING |
|
|
1 |
Public
shareholding |
|
|
|
- Number
of shares |
389987804 |
|
|
-
Percentage of shareholding |
44.87 |
|
2 |
Promoters and Promoter Group Shareholding |
|
|
(a) |
Pledged /Encumbered |
|
|
|
Number of
shares |
-- |
|
|
Percentage
of shares (as a % of the total shareholding of promoter and promoter group) |
-- |
|
|
Percentage
of shares (as a % of the total share capital of the company) |
-- |
|
(b) |
Non-encumbered |
|
|
|
Number of
shares |
479113619 |
|
|
Percentage
of shares (as a % of the total shareholding of promoter and promoter group) |
100.00 |
|
|
Percentage
of shares (as a % of the total share capital of the company) |
55.13 |
|
|
Particulars |
Quarter ended 30.06.2013 |
|
B |
INVESTOR
COMPLAINTS |
|
|
|
Pending at
the beginning of the quarter |
- |
|
|
Received
during the quarter |
- |
|
|
Disposed
of during the quarter |
- |
|
|
Remaining
unresolved at the end of the quarter |
- |
(Rs.
In Millions)
|
Segment
Information |
Quarter Ended 30.06.2013 |
|
|
|
|
Segment
Revenues |
|
|
Iron ore |
113.000 |
|
Metallurgical
coke |
1343.200 |
|
Pig iron |
3221.400 |
|
Power |
-- |
|
Total |
4677.600 |
|
Less:
Inter-segment revenues |
|
|
Iron ore |
36.200 |
|
Metallurgical
coke |
981.900 |
|
Pig iron |
1.900 |
|
Power |
-- |
|
Total |
1020.000 |
|
|
|
|
Net Sales
/ Revenue from operations Segment Results - Profit/(Loss) before tax, finance
cost, interest and investment income and exceptional item |
|
|
Iron ore |
(1611.900) |
|
Metallurgical
coke |
(82.300) |
|
Pig iron |
144.200 |
|
Power |
-- |
|
Total |
(1550.000) |
|
Less: Finance cost |
1478.400 |
|
Add:
Interest and investment income |
49.200 |
|
Less:
Exceptional item |
-- |
|
Profit/(Loss)
before tax |
(2979.200) |
|
Capital
Employed |
|
|
Iron ore |
15289.900 |
|
Metallurgical
coke |
2221.300 |
|
Pig iron |
7147.900 |
|
Power |
-- |
|
Unallocated |
103659.600 |
|
Total |
128318.700 |
NOTES:
- The above results have been
reviewed by the Audit Committee and approved by the Board of Directors at
their respective meetings held on July 29, 2013. The statutory auditors
have carried out a "Limited Review" of these results.
- The figures for the quarter ended
March 31, 2013 are the balancing figures between audited figures in respect
of the previous financial year ended March 31, 2013 and the unaudited
published year to date figures upto December 31, 2012, being the end of
the third quarter of the previous financial year, which were subject to
limited review.
- The Shareholders at the Court
convened meeting held on June 19, 2012, have approved a Scheme of
Amalgamation and Arrangement amongst Sterlite Industries (India) Limited,
The Madras Aluminum Company Limited, Sterlite Energy Limited, Vedanta
Aluminium Limited, and Sesa Goa Limited ("the Company") and
their respective shareholders and creditors (the "Scheme") and
also a Concurrent Scheme of Amalgamation of Ekaterina Limited with the
Company and their respective shareholders and creditors (the
"Concurrent Scheme"). The Scheme and the Concurrent Scheme are
inter-conditional and the Concurrent Scheme coming into effect is a
condition precedent to the effectiveness of the Scheme. Further, the name
of the Company is proposed to be changed from Sesa Goa Limited to Sesa
Sterlite Limited pursuant to the Scheme of Amalgamation and Arrangement.
- The High Court of Bombay at Goa,
based on the petitions filed by the Company, has approved the Scheme for
merger vide its order dated April 3, 2013. A shareholder has appealed
against the aforementioned order to the Divisional Bench of the High Court
of Bombay at Goa in respect of which the hearings have been completed and
the order is awaited. The Scheme has also been approved by the Honourable
High Court of Madras in respect of the other merging entities on July 25,
2013. Pending the foregoing, no accounting impact of the Scheme has been
given in the above results.
a)
The
Honourable Supreme Court of India has given clearance for resumption of mining operations
for 'A' and 'B' category mines in Karnataka subject to statutory clearances,
vide its order dated April 18, 2013. The company's Karnataka mines fall under
the 'B' category of mines in Karnataka and is in process of securing the
necessary statutory clearance to resume mining shortly.
b)
The
Government Authorities have ordered suspension of mining operation of all
mining leases in the State of Goa, stoppage of mining transport across the
State of Goa and suspension of environmental clearance in September, 2012. In
October, 2012, the Supreme Court has ordered suspension of all mining
operations and transportation of iron ore of the mines in the State. In view of
the foregoing, operations at the Company's mines in Goa remain suspended. The
Company has filed an application before the Supreme Court seeking vacation or
modification of the aforesaid order. Based on the favourable verdict of the
Supreme Court lifting the suspension of iron ore mining in the State of
Karnataka and the affidavit filed by the Government of Goa in the matter of
resumption of mining in Goa, the Company expects a favourable outcome in the
matter.
- Figures for the previous periods
have been regrouped / rearranged wherever necessary to conform to the
current period's classification.
CONTINGENT LIABILITIES: (As on 31.03.2013)
i)
Guarantees (excluding the liability for which provisions have been made)
amounting to Rs.203.800 Millions (Previous
year Rs.232.200 Millions) given
by the bankers in favour of various parties.
ii)
Letters of Credit opened by the banks in favour of suppliers amounting
to Rs.868.700 Millions (Previous year
Rs.1381.900 Millions).
iii)
Bonds executed in favour of customs authorities in respect of export of
iron ore Rs.28077.500 Millions (Previous year Rs.24748.200
Millions).
iv) Claims by custom authorities (under
dispute) relating to differential export duty on export shipments Rs.344.100 Millions (Previous year Rs.344.100 Millions). The said amount is also included under
bonds executed detailed.
v)
Bills discounted under letters of credit with banks Rs.161.300 Millions (Previous year Rs.1370.300 Millions).
vi)
There are disputed income tax demands lying at appellate authorities for
assessment years 2004-05 to 2011-12, aggregating Rs.15224.700 Millions (Previous year Rs.2453.800 Millions) including interest Rs.3223.600 Millions
(Previous year Rs.623.600 Millions) and penalty Rs. 2000.000 Millions (Previous year Nil). The Company has received
a favourable order in respect of assessment year 2009-10 from the Income Tax
Appellate Tribunal (“ITAT”) allowing the claim of the company on all the major
matters and with direction to the Assessing Officer (AO) to re-compute the
taxable income. Most of the pending assessment years have similar matters as
covered in the aforesaid order.
vii)
Disputed forest development tax amounting to Rs. 1953.600 Millions (Previous year Rs.1953.600 Millions) levied by Government of Karnataka
challenged by writ petition filed in the High Court of Karnataka. Hearing of
writ petition before the High Court of Karnataka is pending. A bank guarantee
amounting to Rs.450.000 Millions (Previous
year Rs.450.000 Millions) has
been furnished against this demand. Also, an amount of Rs.402.300 Millions
(Previous year Rs.402.300 Millions) has been deposited against the aforesaid
demand and same is included under Short term loans and advances.
viii)
Cess on transportation of Ore, coal and coke within Goa levied by
Government of Goa under the Goa Rural
Development and Welfare Cess Act, 2000 (Goa
Act 29 of 2000) amounting to Rs.1053.300 Millions (Previous year Rs.983.500 Millions) challenged by way of writ petition in the High Court of Bombay, Panjim
Bench.
ix)
Guarantees issued to a bank in respect of facilities granted to a
subsidiary Rs.271.900 Millions (Previous year Rs.
Nil).
x)
Other claims against the Company not acknowledged as debts:
a) Dead
rent on deemed mining leases for the period from 20.12.1962 to 23.5.1987
amounting to Rs.1.000 Million (Previous year Rs.1.000 Million) and royalty for the period from 20.12.1961
to 30.9.1963 amounting to Rs.1.200 Millions (Previous year Rs.1.200 Millions) sought to be levied by the Government pursuant to the Goa, Daman and
Diu Mining Concessions (Abolition and Declaration as Mining Leases) Act 1987, challenged
by Special Leave Petition before Supreme Court of India.
b)
Claims related to commercial and employment contracts Rs.56.900 Millions (Previous year Rs.42.600 Millions).
c) Demand
from Railway authorities towards stacking charges amounting to Rs.40.900 Millions (Previous year Rs.40.900 Millions) appealed before Kolkata High court and stay
obtained. A bank guarantee amounting to Rs.40.900 Millions (Previous year Rs.40.900 Millions) has been furnished against this demand.
d)
Others Rs. 138.300 Millions (Previous
year Rs.33.200 Millions).
The above amounts are based on the demand
notices or assessment orders or notification by the relevant authorities, as
the case may be, and the Company is contesting these claims with the respective
authorities. Outflows, if any, arising out of these claims would depend on the
outcome of the decisions of the appellate authorities and the Company’s rights
for future appeals before the judiciary.
FIXED ASSETS
Tangible assets
- Mining leases
- Mining
concessions
- Land plots
- Road and
Bunders
- Buildings
- Plant and
equipment
- Furniture and
fixtures
- Vehicles
- Office
equipment
- Aircraft
- River fleet
- Ship
Intangible assets
- Computer
software
PRESS RELEASES
SESA GOA LIMITED ANNOUNCES GROUP CONSOLIDATION AND SIMPLIFICATION
AUGUST 21, 2013
Sesa Goa Limited Announces Group Consolidation and Simplification
Sesa Goa Limited (‘Sesa Goa’) today announced that the merger of Sterlite Energy Limited (‘SEL’) with Sesa Goa and the demerger of the Aluminium Business Undertaking of Vedanta Aluminium Limited (‘VAL’) into Sesa Goa pursuant to the Scheme of Amalgamation and Arrangement have become effective.
Company’s wholly owned subsidiary, Bloom Fountain Limited, would acquire 38.68% stake in Cairn India Limited together with the associated debt, effective 26th August 2013.
Further, the Company has also approved the acquisition of 1,215 MW thermal power plants situated at Jharsuguda and 90 MW co-generation facility at Lanjigarh, from its wholly owned subsidiary, VAL, on a going concern basis.
The above transactions would complete the Vedanta Group’s consolidation and simplification as announced on 25th February, 2012.
About Sesa
Sesa is India’s leading producer and exporter of iron ore in the private sector with operations in the states of Goa and Karnataka in India and a large integrated project site in Liberia, West Africa. Founded in 1954, for about 6 decades, Sesa has been involved in iron ore exploration, mining, beneficiation and exports. Sesa is a part of Vedanta Resources plc, the London-listed FTSE 100 diversified metals and mining major. Sesa also manufactures pig iron and metallurgical coke, with a 0.56 mtpa metallurgical coke plant and a 0.625 mtpa pig iron plant in Goa, and associated two power plants of 30 MW each.
Disclaimer
This press release contains “forward-looking statements” – that is, statements related to future, not past, events and may be interpreted as ‘forward looking statements’ within the meaning of applicable laws and regulations. In this context, forward-looking statements often address our expected future business and financial performance, and often contain words such as “expects,” “anticipates,” “intends,” “plans,” “believes,” “seeks,” “should” or “will.” Forward–looking statements by their nature address matters that are, to different degrees, uncertain. Actual results might differ substantially or materially from those expressed or implied. Important developments that could affect the company’s operations include a downtrend in the steel, pig iron and met coke industry – global or domestic or both, significant changes in political, economic, business, competitive or regulatory environment in India or key markets abroad and from numerous other matters of national, regional and global scale including but not limited to natural calamity, tax laws, litigations, Government policies and regulations, fluctuations in interest and or exchange rates of Indian Rupee, etc. Any forward-looking information in this press release has been prepared on the basis of a number of assumptions, which may prove to be incorrect. This press release should not be relied upon as a recommendation or forecast by Sesa Goa Limited. The views expressed herein may contain information derived from publicly available sources that have not been independently verified; no representation or warranty is made as to the accuracy, completeness or reliability of this information. We do not undertake to update our forward-looking statements.
CAIRN INDIA'S DIVIDEND PAYOUT CRUCIAL FOR VEDANTA: MOODY'S
APRIL 24, 2013
NEW DELHI: Cairn India's dividend payouts are crucial for Vedanta Group to service debt it had raised to acquire the oil company, credit rating agency Moody's Investors Service said today.
Cairn this week announced a final dividend of Rs 6.5 per share, taking total dividend declared for 2012-13 to Rs 11.5 per share or about $ 407 million. Moody's Investors Service said the dividend payout was on expected lines and "there is no immediate impact on Vedanta Resources Plc's Ba1 corporate family rating." "The rating remains under review for possible downgrade," it said.
"Cairn's payment of dividends is crucial for Vedanta given its reliance on the up-streamed dividend to service the debt raised to acquire its stake in Cairn," said Alan Greene, a Moody's Senior Credit Officer in a note.
The dividend was more important for its co-shareholder, Sesa Goa Limited, which is currently losing money on its core iron ore operations due to the mining restrictions imposed in Goa and Karnataka, and which has its own debt to service. Vedanta owns a 38.7 per cent stake in Cairn through a Mauritius holding company, and 20.1 per cent indirectly through Sesa Goa.
"Absent an improvement in base metal prices and the continuing mining ban in Goa, we expect Cairn to remain as Vedanta's main EBITDA contributor over the next 12 months," Greene said.
Cairn will invest over $ 3 billion over the next three years in development and exploration activities, aiming at unlocking further potential within the Rajasthan block and potentially outside Rajasthan.
"Moody's expects both this level of capex and dividend to be funded without reducing the $ 3 billion of cash and cash equivalents reported by Cairn," the note said.
Cairn's reported cash flow from operations was $ 2.034 billion in 2012-13.
Moody's Investors Service said the January-March quarter was weaker for Cairn as compared to same period the previous year as the increase in the cess rate and lower realised prices per barrel offset the volume gains.
In Q4 2012-13, Cairn reported EBITDA of $ 534 million compared to $ 581 million a year earlier.
"Nevertheless, Cairn is stepping up exploration activity and EBITDA should be bolstered as additional wells are drilled and completed, and once the field development plan is approved," it said.
SESA GOA SHARES: WEDDING BELLS, AT LAST, BUT...
SEPTEMBER 16 2013
Sesa Goa’s stock has rallied sharply (up 35%) in the past fortnight backed by regulatory clearances for its long pending merger of Sterlite into Sesa and expectations of the company receiving approval for the buyout of the government’s residual stakes in Hindustan Zinc and Balco. The merger approval should boost the company’s efforts towards simplifying its corporate structure and offer a much diversified revenue and Ebitda mix.
However, we believe that issues of cash fungibility across group businesses will remain as cash-rich zinc (HZL) and oil (Cairn India) businesses are housed in separate entities. Post-the sharp move in stock price, we see limited upside from current levels until there is more clarity on cost effective bauxite sourcing for the Jharsuguda aluminum operations (erstwhile VAL) or there is improved visibility on captive coal for the company’s power operations. We downgrade Sesa to Hold with a target price of R170/share (vs R166 earlier).
We continue to remain positive on HZL on the back of the improving outlook for mined metal growth and refined metal growth. We have increased our FY14e earnings for HZL by 10% to factor in a depreciated INR and reiterate our Buy rating with a revised target price of R144/share (vs R134 earlier).
The merger provides impetus to the group’s efforts towards simplification of the complex corporate structure. Sesa Sterlite, the new entity, will now house all the operating businesses in India and should help in better alignment of the promoter interest. But cash fungibility is likely to remain limited under the new structure as well. Since oil and zinc business are housed in separate entities, it should limit the group’s access to the impressive cash flows being generated by these world class businesses.
Also, the earnings prospects for the aluminum (VAL) and
power business (Sterlite Energy Limited) housed in the standalone Sesa Sterlite
remain subdued with visibility remaining low on captive bauxite and coal
supplies. With recent stock performance already factoring in benefits from the
corporate restructuring and probable sale of government’s residual stakes in
Hindustan Zinc to a large extent, we would wait for more clarity on steps to
Further
SESA GOA DEFERS 10-25% SALARIES, MINING BAN TAKES TOLL
JANUARY 25, 2013
New Delhi: Vedanta group firm Sesa Goa has deferred 10-25 percent of salaries
to its senior employees as it grapples with huge erosion in sales and profits
on account of ban on mining in Goa and Karnataka, a top company official said
today. From 1 January, payment of 25 percent of salaries have been deferred for
top management, including company’s managing director and other Board members,
and 10 percent for manager level employees.
First post Business Sesa Goa defers 10-25% salaries, mining ban takes toll Jan
25, 2013 #PK Mukherjee # Sesa Goa #This is Next 0 0 0 0 Comments Email Print
New Delhi: Vedanta group firm Sesa Goa has deferred 10-25 percent of salaries
to its senior employees as it grapples with huge erosion in sales and profits on
account of ban on mining in Goa and Karnataka, a top company official said
today. From 1 January, payment of 25 percent of salaries have been deferred for
top management, including company’s managing director and other Board members,
and 10 percent for manager level employees.
Iron woes. Reuters Iron woes. Reuters “We have deferred 10 to 25 percent of the salaries of company’s executives from 1 January but it is not a cut, only deferment and is applicable for non-unionised and managerial staff. I, myself, have gone for a 25 percent deferment in salary,” said Sesa Goa managing director PK Mukherjee.
The country’s largest private sector iron ore producer is going through possibly the worst period in its history due to mining ban in Goa, where it is based.
The company did not produce or sell iron ore in the last quarter from Goa, where the ban was first imposed by the state government in September and subsequently extended by the Supreme Court in October. The ban was imposed after a report by Justice MB Shah Commission, which pegged a Rs 350000.000 Millions loss to the exchequer due to illegal mining in the state.
Sesa Goa’s operations in Karnataka are already closed for more than a year due to the apex court-imposed mining ban in the state. It reported a whopping 91.26 percent fall in net sales to Rs 2275.400 Millions in the October-December quarter. The firm would have posted a consolidated net loss of Rs 1722.500 Millions for the quarter, had it not been aided by a Rs 6690.000 Millions profit from associate firm and oil major, Cairn India. “It all depends on how the apex court decides the Goa mining issue. There have been many hearings but we all are waiting for a final outcome. I am definitely positive that Goa will not go Karnataka way,” Mukherjee said when asked about the way forward for the iron ore mining firm. Not only Sesa Goa but Goan economy in general has been hit hard by the mining ban, he said. “The matter needs attention of the authorities as about one third of the population is dependent on mining. With due respect to all the authorities, I don’t find a sense of urgency to resolve the matter. I am open to discuss it at any forum,” Mukherjee said. On Karnataka, where Sesa Goa’s capacity has been pruned to 2.29 million tonnes per annum (MTPA) from 6 MTPA, he said that the company is hopeful of resuming its operations soon but again it depends on apex court permission. “Our Reclamation and Rehabilitation plan has already been cleared by the Central Empowered Committee (CEC). Now we are waiting for directions from the apex court,” he said.
SESA GOA JUMPS AHEAD OF HEARING ON MINING CASE
17TH SEPTEMBER 2013
Sesa Goa, one of the largest producers and exporters of iron ore in India, surged on Tuesday on hopes the mining ban in Goa would be removed by the Supreme Court. The SC will hearing the matter today. Shares of the company are trading at Rs 182.35, up Rs 5.15, or 2.91% at the Bombay Stock Exchange (BSE) on Tuesday at 1:24 p.m. The scrip has touched an intra-day high of Rs 185.00 and low of Rs 175.30. The total volume of shares traded at the BSE is 1,872,126.In the earlier session, the shares lost 3.62%, or Rs 6.65, at Rs 177.20.
Currently, the stock is trading down 11.22% from its 52-week high of Rs 205.40 and above 52.66% over the 52-week low of Rs 119.45.
Share Price Movement Period Pricein Rs Gain/(Loss) in Rs in % 1 Week 142.10 (3.70) (2.60) 1 Month 156.90 (18.50) (11.79) 3 Months 153.90 (15.50) (10.07) 6 Months 192.25 (53.85) (28.01) 1 Year 185.90 (47.50) (25.55) Note: Based on previous day closing price.
GOA MINING BAN: SC TO REGULARLY HEAR CASE; MINERS RELIEVED
SEP 17, 2013
Supreme Court's decision to regularly hear the matter of Goa mining ban case will bring relief to Goa miners and Sesa Goa.
it is a huge relief for Goa miners and Sesa Goa in particular as the Supreme Court (SC) will regularly hear the matter of Goa mining ban case, reports CNBC-TV18’s Anshu Sharma.
Also read: Can use Goa's 8-10MT inventory once ban is lifted: Sesa Goa
Last year, the state of Goa and Supreme Court had imposed mining ban in the state after MB Shah Commission report was submitted citing illegal mining practices in the state.
This ban caused about USD 8 billion loss of revenue to both the central and the state government. At present about 4-6 million tonne iron ore is lying idle in the state, which is dependent on exports of these iron ore
UPDATE ON SCHEMES OF AMALGAMATION AND
ARRANGEMENT
29 August
2013: Sesa
Goa Limited ('Sesa Goa' or the "Company') has today allotted equity shares
to the Shareholders of Sterlite Industries (India) Limited ('Sterlite'), The
Madras Aluminium Company Limited ('MALCO') and Ekaterina Limited ('Ekaterina')
pursuant to the Schemes of Amalgamation and Arrangement as under:
To the Shareholders
of Sterlite: 194,45,43,741 equity Shares
of Re. 1/- fully paid up, 3 Sesa Goa shares being issued for every 5 existing
Sterlite shares;
To the
Shareholders of MALCO: 7,87,24,989 of Re. 1/-
each fully paid up, 7 Sesa Goa shares being issued for every 10 existing MALCO
shares;
To the
Shareholders of Ekaterina: 7,23,04,334 of Re. 1/-
each fully paid up, 1 Sesa Goa shares being issued for every 25 existing
Ekaterina shares.
Consequent
to the aforesaid allotments, the paid up equity share capital of the Company
stands increased from Rs. 869.101 Millions to Rs.
2964.674 Millions.
Sesa
Goa will apply to the Bombay Stock Exchange and the National Stock Exchange in
India (together, the "Indian Stock Exchanges") for listing approval
for the new Sesa Goa shares and expects to receive the final listing approval
within three to four business days. Thereafter, Sesa Goa will apply to the
Indian Stock Exchanges for trading approval for the new Sesa Goa shares and
expects to receive the trading approval within a further two to three business
days. The new Sesa Goa shares are expected to begin trading on the Indian Stock
Exchanges on the next business day in India after trading approval is received.
ALL-SHARE MERGER OF SESA GOA AND
STERLITE INDUSTRIES BECOMES EFFECTIVE
Goa,
17 August 2013: Sesa Goa
Limited ('Sesa Goa') and Sterlite Industries (India) Limited ('Sterlite') today
announced that merger of Sterlite and The Madras Aluminium Company Limited
(MALCO) with Sesa Goa and transfer of MALCO power plant to Vedanta Aluminium
Limited (VAL) pursuant to the Scheme of amalgamation and arrangement amongst
Sterlite, MALCO, Sterlite Energy Limited (SEL), VAL and Sesa Goa and their
respective Shareholders and Creditors ('Composite Scheme') and the Scheme of
Amalgamation of Ekaterina Limited (Ekaterina) with Sesa Goa and their
respective Shareholders and Creditors ('Ekaterina Scheme') has become
effective.
28 August,
2013 has been fixed as the Record date for determining the list of the
shareholders of Sterlite, MALCO and Ekaterina to whom the equity shares of the
Sesa Goa will be allotted as per terms of the scheme as already announced on 25
February 2012 in the following manner:
To the Shareholders of Sterlite:
Every equity
shareholder of Sterlite holding 5 (five) equity shares in Sterlite of Re. 1
each fully paid up ('Sterlite Shares') as of the Record Date shall be entitled
to be issued 3 (three) shares of face value Re. 1 each, at par, credited as
fully paid up, of the Sesa Goa ('Sesa Goa Shares').
To the ADS holders of Sterlite:
Every holder
of Sterlite ADSs (each representing 4 (four) Sterlite shares) holding 5 (five)
Sterlite ADSs shall be entitled to receive 3 (three) Sesa Goa ADSs (each
representing 4 (four) Sesa Goa shares).
To the Shareholders of MALCO:
Every equity
shareholder of MALCO holding 10 (ten) equity shares in MALCO of Rs. 2 each
fully paid up as of the Record Date shall be entitled to be issued 7 (seven)
equity shares of face value Re. 1 each, at par, credited as fully paid up, of
the Sesa Goa.
To the Shareholders of Ekaterina:
Every equity
shareholder of the Ekaterina Limited holding 25 (Twenty Five) equity shares in
Ekaterina Limited of USD 0.1 each fully paid up as of the Record Date shall be
entitled to be issued 1 (One) equity share of the face value of Re. 1 each, at
par, credited as fully paid-up, of the Sesa Goa.
Treatment
of fractional entitlements:
All
fractional entitlements (cumulatively) of individual shareholders will be allotted
to one of the Sesa Goa's Director's, who shall hold the same as a trustee for
and on behalf of such shareholders of Sterlite and MALCO and shall dispose off
and distribute the proceeds thereof to such entitlements.
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.61.28 |
|
|
1 |
Rs.99.03 |
|
Euro |
1 |
Rs.83.80 |
INFORMATION DETAILS
|
Information
Gathered by : |
NAY |
|
|
|
|
Report Prepared
by : |
KVT |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
6 |
|
--CREDIT LINES |
1~10 |
6 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
YES |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
DEFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
51 |
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.