MIRA
INFORM REPORT
|
Report Date : |
08.04.2014 |
IDENTIFICATION DETAILS
|
Name : |
ESSAR STEEL INDIA LIMITED (w.e.f.18.01.2012) |
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Formerly Known
As : |
ESSAR STEEL LIMITED |
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Registered
Office : |
27Km., Surat Hazira
Road, Hazira, Surat – 394
270, Gujarat |
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Country : |
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Financials (as
on) : |
31.03.2013 |
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Date of
Incorporation : |
01.06.1976 |
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Com. Reg. No.: |
04-013787 |
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Capital Investment
/ Paid-up Capital : |
Rs.28418.000 Millions |
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CIN No.: [Company Identification
No.] |
U27100GJ1976FLC013787 |
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TAN No.: [Tax Deduction &
Collection Account No.] |
SRTE00025E |
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PAN No.: [Permanent Account No.] |
AAACE1741P |
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Legal Form : |
A Closely Held Public Limited Liability Company |
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Line of Business
: |
Manufacturing and Selling of Steel Products. |
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No. of Employees
: |
Not Divulged |
RATING & COMMENTS
|
MIRA’s Rating : |
B (29) |
|
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 284140000 |
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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 a part of “Essar Group”. It is an established company having a moderate track record. The company possesses a weak financial profile marked by consecutive losses
which has further deteriorated the position of reserves during 2013. The rating take into consideration the liquidity pressures faced due
to extraneous challenges impacting in running of steel plant. However, the
infusion of funds from the part of promoters has slightly eased the liquidity
position and in turn has nurtured in gradual improvement in its ongoing
financing exercise. Trade relations are fair. Business is active. Payment terms are
reported as slow. In view of Healthy support from its group company, the subject can be
considered for business dealings with great caution. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – December 1, 2013
|
Country Name |
Previous Rating (30.09.2013) |
Current Rating (01.12.2013) |
|
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
India’s current account deficit for the fiscal third
quarter ended September 2013 narrowed to $4.2 billion or 0.9 % of the gross
domestic product from $31.9 billion or 6.5 % of GDP a year earlier, thanks to a
pick-up in exports and moderation in gold imports. Manufacturing activity and
new orders in India showed their strongest growth in a year in February. The
news comes as a relief after data showed Asia’s third largest economy grew by a
slower-than-expected 4.7 % annually in the three months through December. The
HSBC Manufacturing Purchasing Managers’ Index which gauges the business
activity of India’s factories but not its’ utilities, rose to 52.5 in February,
its highest in a year from 51.4 in January. Overall new orders for factory
goods which rose to a one-year high of 54.9 contributed to the surge. China has
emerged as India’s biggest trading partner in the current financial year
replacing the United Arab Emirates and pushing it to the third spot.
India-China trade has reached $49.5 billion with a 8.7 % share in India’s total
trade. The US comes second at $46 billion with 8.1 % share during the first
nine months of the current financial year.
The Reserve Bank of India has granted an additional nine months to the
public to exchange currency notes printed before 2005 including Rs 500 and Rs 1,000 denominations,
pushing the deadline to January 1, 2015. A day before dates for the Lok Sabha polls were announced,
the government decided to hike interest rates on fixed deposit schemes offered
by post offices up to 0.2 per cent. The new rates will be effective April, 1.
The Supreme Court will resume hearing on March, 11 Nokia’s appeal against a
ruling over transferring ownership of its local mobile phones plant which is
the subject of a tax dispute to Microsoft Corp.
In the last days of the current Government, another scam has surfaced.
The defence ministry has ordered a probe into
Hindustan Aeronautics Limited’s contracts from
Britain’s Rolls-Royce Holdings worth at least $ 1.2 billion. The Central Bureau
of Investigation will look into allegations that over $80 million was paid in
kickbacks in a deal signed in 2011. India has asked Boeing Co. to find a
solution for problems with state-owned Air India’s 787 Dreamliners.
The aircraft has experienced a series of malfunctions since its debut in 2011.
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CARE |
|
Rating |
Long Term Bank Facilities=C |
|
Rating Explanation |
Have very high risk of default. |
|
Date |
24.10.2013 |
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 DENIED
Management Non Co-operative (91-22-67335000)
LOCATIONS
|
Registered Office/ Plant 1 : |
27Km., Surat Hazira
Road, Hazira, Surat – 394
270, Gujarat, India |
|
Tel. No.: |
91-261-2872400/ 6682400 |
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Fax No.: |
91-261-2872400/ 6682796/ 6685731 |
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E-Mail : |
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Website : |
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Corporate Office : |
Essar House, 11, Keshavrao
Khadye Marg, Mahalaxmi, Mumbai – 400 034, Maharashtra,
India |
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Tel. No.: |
91-22-66601100 / 24950606 |
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Fax No.: |
91-22-24928896 |
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Marketing and Sales Office : |
6th Floor, Tower-2, Equinox Business Park (Peninsula Techno
Park) Off Bandra Kurla
Complex, LBS Marg, Kurla
(West), Mumbai – 400 070, Maharashtra, India |
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Tel. No.: |
91-22-67335000 |
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Fax No.: |
91-22-67082189 |
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E-Mail : |
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Plant 2 : |
Scindia Road, Near Flyover, Visakhapatnam
– 530 004, Andhra Pradesh, India |
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Tel. No.: |
91-891-2523213 |
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Fax No.: |
91-891-2559383/ 2556907 |
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Overseas Offices [Plants] : |
Located at ·
Canada ·
Indonesia ·
United Kingdom ·
United Arab Emirates ·
Germany ·
China |
DIRECTORS
AS ON 31.03.2013
|
Name : |
S. N. Ruia |
|
Designation : |
Chairman (upto 07.08.2013) |
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|
Name : |
Jatinder Mehra |
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Designation : |
Director |
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Name : |
V. G. Raghavan |
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Designation : |
Director |
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|
Name : |
S. V. Venkatesan |
|
Designation : |
Director (upto 29.05.2013) |
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|
Name : |
K. V. Krishnamurthy |
|
Designation : |
Director (upto 14.11.2012) |
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|
Name : |
Jitender Balakrishnan |
|
Designation : |
Director (upto 29.05.2013) |
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Name : |
Rana Som |
|
Designation : |
Director |
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Name : |
S Santhanakrishnan |
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Designation : |
Nominee Director
(SBI) (w.e.f. 12.03.2013) |
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|
Name : |
Arvind Pande (w.e.f.
29.05.2013) |
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Designation : |
Director |
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Name : |
S. S. Kohli (w.e.f. 29.05.2013) |
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Designation : |
Director |
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|
Name : |
S. R. Jain (w.e.f. 29.05.2013) |
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Designation : |
Director |
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|
Name : |
Alok Dhir (w.e.f.
29.05.2013) |
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Designation : |
Director |
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|
Name : |
Dilip Oommen |
|
Designation : |
Managing
Director and CEO |
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|
Name : |
Amit Agarwal |
|
Designation : |
Director
(Finance) (upto 08.11.2012) |
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|
Name : |
Alok Gupta |
|
Designation : |
Director
(Marketing) |
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Name : |
Ashutosh Agarwala |
|
Designation : |
Director (Finance) (w.e.f. 29.05.2013) |
KEY EXECUTIVES
|
Name : |
Rakesh Darji Company
Secretary |
|
Designation : |
Company Secretary |
SHAREHOLDING PATTERN
Share Holding Pattern details are Not Available
BUSINESS DETAILS
|
Line of Business : |
Manufacturing and Selling of Steel Products. |
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Products : |
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PRODUCTION STATUS (AS ON 31.03.2011)
Licensed Capacity - *
Installed Capacity
(as certified by the management) per annum
|
Particulars |
Unit |
31.03.2011 |
|
|
MT |
8000000 |
|
Hot Briquette Iron / Direct Reduced Iron (Trial Run 17,00,000 MT) |
|
6700000 |
|
Hot Metal (Under Trial run) |
MT |
1730000 |
|
Hot Rolled Coil |
MT |
3600000 |
|
Cold Rolled Coil |
MT |
2110000 |
|
Colour Coating |
MT |
400000 |
|
Plates |
MT |
1500000 |
|
Pipes (Including Capacity of L-Saw Plant under Trial Run 325,000 MT) |
MT |
600000 |
PRODUCTION
|
Particulars |
Unit |
31.03.2011 |
|
|
MT |
5081082 |
|
Hot Briquette
Iron / Direct Reduced Iron (Including trial run production of 411,782 MT) |
MT |
4237809 |
|
Hot Metal (Under Trial Run) |
MT |
373354 |
|
Hot Rolled Coils/Cold Rolled Coils/ Plates |
MT |
3217932 |
|
Plates (Including trial run production of 77,910 MT) |
MT |
366606 |
|
Pipes (Including trial run production of L-Saw 24,503 MT) |
MT |
101803 |
* Not applicable in terms of Government of India's Notification No. S.O.477 (E) dated 25th July, 1991.
** Includes production of Pellets on Job Work Basis of
172882 MT
GENERAL INFORMATION
|
No. of Employees : |
Not Divulged |
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Bankers : |
·
Allahabad Bank ·
Axis Bank Limited ·
Bank of Baroda ·
Bank of India ·
Canara Bank ·
Central Bank of India ·
Corporation Bank ·
Export Import Bank of India ·
HDFC Bank Limited ·
ICICI Bank Limited ·
IDBI Bank Limited ·
Indian Overseas Bank ·
Punjab National Bank ·
State Bank of Bikaner
and Jaipur ·
State Bank of Hyderabad ·
State Bank of India ·
State Bank of Mysore ·
State Bank of Patiala ·
Syndicate Bank ·
The Federal Bank Limited ·
The Jammu and Kashmir Bank Limited ·
UCO Bank ·
Union Bank of India ·
Yes Bank Limited |
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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 |
|
Address : |
Heritage, 3rd Floor, Near Gujarat-Vidhyapith,
Off Ashram Road, Ahmedabad – 380 014, Gujarat,
India |
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|
Holding Company : |
·
Essar Steel Asia Holdings Limited (FKA Essar
Resources Mauritius Ltd) Immediate Holding Company- (ESAHL) (w.e.f. 29.06.2012) ·
Essar Steel Mauritius
Limited - Holding Company of Essar Steel Asia
Holdings Limited - (ESML) ·
Essar Steel Limited -
Mauritius - Immediate Holding Company (ESTLM) (upto
28.06.2012) · Essar Global Fund Limited (FKA Essar Global Limited) |
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|
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Subsidiaries : |
·
Essar Steel Middle
East FZE (ESMEF) ·
Essar Steel Trading
FZE (ESTF) ·
Essar Steel Offshore
Limited. (ESOSL) ·
Essar Steel Overseas
Limited. (ESOL) ** ·
Trinity Coal
Marketing LLC (EMA) * ·
Essar Minerals Limited
(FKA Essar Mining Limited) * ·
Essar Mineral Cooperatief U.A. * ·
Essar Minerals Canada
Limited * ·
Essar Minerals INC * ·
Trinity Parent Corporation
* ·
Trinity Coal
Corporation * ·
Trinity Coal
Partners LLC * ·
Bear Fork
Resources LLC * ·
Deep Water
Resources LLC * ·
Levisa Fork Resources
LLC * ·
North Springs
Resources LLC * ·
Little Elk Mining
Company LLC * ·
Banner Coal
Terminal LLC * ·
Hughes Creek terminal
LLC * ·
Frasure Creek Mining LLC
* ·
Falcon Resources
LLC * ·
Prater Branch
Resources LLC * ·
Trinity RMG
Holding LLC * ·
RMG INC * *These companies are subsidiaries of a
wholly owned subsidiary of the Company ** Liquidated w.e.f. 13.09.2012 |
|
|
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|
Fellow Subsidiaries : |
·
Aegis Limited (AEGIS) ·
Essar Power(Jharkhand)Limited.(EPJL) ·
Essar Africa Holdings Limited.
(EAHL) ·
Essar Bulk Terminal Paradeep Limited. (EBTPL) ·
Essar Electric Power Development
Corporation Limited (EEPDCL) ·
Essar Logistics Limited. (ELL) ·
EssarMineral Resources Limited. (EMRL) ·
EssarOffshore Subsea
Limited. (EOSL) ·
Essar Oil Limited. (EOL) ·
Essar Port Limited (EPL) ·
EssarSteel Algomalnc.(ESA-INC) ·
Essar Steel Processing &
Distribution UK Ltd. (ESPD UK) ·
PT Essarlndonesia(PTEI) ·
Vadinar Oil Terminals Limited.
(VOTL) ·
Vadinar Power Company Limited.
(VPOCL) ·
AgcNetworksLimited (Formally Avaya Global) (AGCNL) ·
Equinox Business Parks Private Limited (EBPPL) ·
Essar Bulk Terminal (Salaya) Limited (EBTSL) ·
Essar Oilfields
Services Limited (EOSPL) ·
Essar Power (M P)
Limited. (EPMPL) ·
Essar Power Gujarat
Limited. (EPGL) ·
Essar Project
Management Consultant Limited. (EPMCL) ·
Essar Projects (India)
Limited. (EPIL) ·
Essar Shipping Limited
(ESL) ·
Essar Paradeep Terminals Limited (EPTL) ·
Navabharat Power Private
Limited (NPPL) ·
Peak Trading
Overseas Limited (PTOL) ·
Vadinar Ports and
Terminals Limited (VPTL) ·
Essar Steel Limited -
Mauritius (ESTLM) (w.e.f. 29.06.2012) |
|
|
|
|
Associates : |
·
Bhander Power Limited. (BPOL) ·
Essar Bulk Terminal Limited.
(EBTL) ·
Essar Power (Orissa)
Limited. (EPOL - Orissa) ·
Essar Power Hazira
Limited (EPHL) ·
Essar Power Limited. (EPOL) ·
Essar Steel Processing FZCO
(ESP-FZCO) |
|
|
|
|
Companies in which Promoters had significant influence/ Control : |
·
Essar Steel Chhattisgarh
Limited. (ESCL) ·
Essar Steel Jharkhand
Limited. (ESJL) ·
Essar Teleholding
Limited. (ETHL) ·
Futura Travels Limited. (FTL) ·
Global Supplies (UAE) FZE (GS) ·
Imperial Consultants and Securities Private Limited
(ICSL) ·
India Securities Limited. (ISL) ·
Kartik Estates Private Limited.
(KEPL) ·
Kroner Investment Limited. (KIL) ·
NewAmbi Trading & Investments
Private Limited (NATIPL) ·
Prajesh Investments Private
Limited. (PIPL) ·
Prajesh Marketing Limited. (PML) ·
The Mobilestore Limited.
(TML) ·
Tirunelveli Wind Farms Limited (TWFL) ·
Essar Procurement Services
Limited (EPSL) ·
Essar Properties Limited. (EPRL) ·
Essar Agrotech
Limited. (EAL) ·
Essar Education Limited (EEL) ·
Clickforsteel Services Limited (CFSL) ·
Downtown Securities Private Limited (DTSPL) ·
Bhargava Estates Private Limited
(BEPL) ·
Essar House Limited. (EHL) ·
Essar Information Technology
Limited. (EITL) ·
Essar Infrastructure Services
Limited. (EISL) ·
Essar Investments Limited. (EIL) ·
Ajitesh Estates Private Limited
(AEPL) ·
Arkay Holdings Limited. (AHL) ·
Arkay Sea Logistics Limited
(ASLL) ·
Essar Services India Limited
(ESIL) ·
Essar SEZ Hazira
Limited (ESEZHL) # These Companies ceased to
be related party w.e.f. 01.04.2012 as the Promoters
do not have any significant influence on the Company |
CAPITAL STRUCTURE
AFTER 31.03.2013
Authorised Capital : Rs.72750.000
Millions
Issued, Subscribed & Paid-up Capital : Rs.28685.503
Millions
AS ON 31.03.2013
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
7175000000 |
Equity Shares |
Rs. 10/- each |
Rs.71750.000 Millions |
|
100000000 |
10% Cumulative Redeemable Preference Shares |
Rs. 10/- each |
Rs.1000.000 Millions |
|
|
|
|
|
|
|
Total |
|
Rs.72750.000
Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
2797534656 |
Equity Shares |
Rs. 10/- each |
Rs.27975.347 Millions |
|
43598951 |
10% Cumulative Redeemable Preference Shares |
Rs. 10/- each |
Rs.435.990 Millions |
|
4520703 |
Add: Equity Shares Forfeited |
|
Rs.6.700 Millions |
|
|
|
|
|
|
|
Total |
|
Rs.28418.037
Millions |
a)
Reconciliation of number of shares and amount
outstanding at the beginning and at the end of the Reporting period:
|
Particulars |
31.03.2013 |
|
|
|
Number |
Rs. In Millions |
|
Equity Shares |
|
|
|
At the beginning of the year |
2626837822 |
26268.378 |
|
Issued during the year |
170696834 |
1706.968 |
|
Outstanding at the end of the year |
2797534656 |
27975.346 |
|
Preference Shares |
|
|
|
At the beginning of the year |
43598951 |
435.990 |
|
Outstanding at the end of the year |
43598951 |
435.990 |
b)
Rights, preferences and restrictions attached to
shares Equity Shares
The
Company has one class of Equity Shares having face value of Rs.
10 per share. Every shareholder is entitled to one vote for every one share
held. In the event of liquidation, the equity share holders shall be entitled
to receive remaining assets of the Company after distribution of all dues in
proportion to their shareholdings.
Cumulative Redeemable Preference Shares (CRPS)
The Company has issued
43,598,951 10% CRPS of Rs. 10 each. Each CRPS is
redeemable at par in 12 equal monthly installments commencing from 01st
October, 2017 to 01st September, 2018. The Company shall have option
to redeem the CRPS at par in one or more tranches
from any or all of the existing holders, anytime after the date of allotment
together with arrears of dividend if any and the Board shall give one month's
notice for any such redemption to the registered holders of the CRPS.
c)
Shares held by Holding Company
Out of above equity shares, 1,976,845,435
equity shares are held by Essar Steel Asia Holdings
Limited, Mauritius (Previous year 1,914,195,440 equity shares are held by Essar Steel Limited, Mauritius) the holding Company.
d)
Details of shareholders holding more than 5% shares
in the Company
|
Particulars |
31.03.2013 |
|
|
|
Number |
% of Holding |
|
Equity Shares |
|
|
|
Essar Steel Asia Holdings Limited1 |
1976845435 |
70.66 |
|
Essar Steel Limited, Mauritius1 |
118902096 |
4.25 |
|
Imperial Consultants & Securities
Private Limited 1.2 |
421760954 |
15.08 |
|
Shares under Trust (Venkatraman
Govind Raghavan) |
191517500 |
6.85 |
|
|
2709025985 |
96.84 |
·
Number of shares
includes 1,911,568,602 shares acquired from Essar
Steel Limited, Mauritius and 10,855,257 shares from Imperial Consultants and
Securities Private Limited, for which transfer of shares in demat
account is pending and in respect of such shares Essar
Steel Asia Holdings Limited (ESAHL) has made necessary declaration under
Section 187C of the Companies Act, 1956 regarding beneficial ownership of such
shares.
·
As per the Scheme
of Arrangement (SOA) between Essar Investment Limited
(EIL) and Imperial Consultants and Securities Private Limited (Imperial)
sanctioned by the Hon'ble High Court at Mumbai vide
order dated 20th January, 2012 and by Madras High Court vide order
dated 5th March, 2012, Investment and Finance Division of EIL has
been demerged into Imperial. In terms of said SOA,
assets and liabilities of Investment Division of EIL stood transferred in the
books of Imperial with effect from 30th March, 2012. However,
pending completion of required formalities for transfer of shares, name of EIL
is appearing in the register of members of the Company. Company has received a
declaration from EIL and Imperial under section 187C of the Companies Act, 1956
regarding beneficial ownership of the said shares.
|
Particulars |
31.03.2013 |
|
|
|
Number |
% of Holding |
|
Preference Shares |
|
|
|
IFCI Limited |
22116599 |
50.73 |
|
Imperial Consultants and
Securities Private Limited |
16940180 |
38.85 |
|
ICICI Bank Limited |
-- |
-- |
|
|
39056779 |
89.58 |
e)
Aggregate number of Bonus Shares issued, shares
issued for consideration other than cash and shares bought back during the
period of five years :
|
Particulars |
31.03.2013 |
|
Equity
Shares allotted as fully paidup pursuant to
scheme of Amalgamation |
1073249784 |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
|
31.03.2013 |
31.03.2012 |
|
I.
EQUITY
AND LIABILITIES |
|
|
|
|
(1)Shareholders' Funds |
|
|
|
|
(a) Share Capital |
|
28418.000 |
26711.100 |
|
(b) Reserves & Surplus |
|
42617.100 |
63823.500 |
|
(c) Money
received against share warrants |
|
0.000 |
0.000 |
|
|
|
|
|
|
(2) Share Application money pending allotment |
|
0.000 |
0.000 |
|
Total
Shareholders’ Funds (1) + (2) |
|
71035.100 |
90534.600 |
|
|
|
|
|
|
(3)
Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
|
228179.200 |
166645.400 |
|
(b) Deferred tax liabilities (Net) |
|
0.000 |
0.000 |
|
(c) Other long term liabilities |
|
1622.900 |
1909.900 |
|
(d) long-term provisions |
|
6559.400 |
4581.400 |
|
Total Non-current Liabilities (3) |
|
236361.500 |
173136.700 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a) Short term borrowings |
|
42871.000 |
76614.000 |
|
(b) Trade payables |
|
76458.300 |
43870.500 |
|
(c) Other current
liabilities |
|
50425.000 |
39178.200 |
|
(d) Short-term provisions |
|
731.800 |
4258.700 |
|
Total Current Liabilities (4) |
|
170486.100 |
163921.400 |
|
|
|
|
|
|
TOTAL |
|
477882.700 |
427592.700 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i)
Tangible assets |
|
287660.800 |
205879.400 |
|
(ii) Intangible Assets |
|
190.500 |
222.100 |
|
(iii) Capital
work-in-progress |
|
60047.700 |
112951.700 |
|
(iv) Intangible assets under
development |
|
0.000 |
0.000 |
|
(b) Non-current Investments |
|
10333.100 |
5398.700 |
|
(c) Deferred tax assets (net) |
|
17526.600 |
3237.700 |
|
(d) Long-term Loan and Advances |
|
6851.900 |
8777.200 |
|
(e) Other Non-current assets |
|
10333.100 |
9589.700 |
|
Total Non-Current Assets |
|
392943.700 |
346056.500 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a) Current investments |
|
0.000 |
0.000 |
|
(b) Inventories |
|
38475.200 |
40446.400 |
|
(c) Trade receivables |
|
6812.700 |
5896.600 |
|
(d) Cash and cash
equivalents |
|
6231.100 |
6509.600 |
|
(e) Short-term loans and
advances |
|
28409.200 |
22502.900 |
|
(f) Other current assets |
|
5010.800 |
6180.700 |
|
Total Current Assets |
|
84939.000 |
81536.200 |
|
|
|
|
|
|
TOTAL |
|
477882.700 |
427592.700 |
|
SOURCES OF FUNDS |
|
|
31.03.2011 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
|
|
25710.000 |
|
|
2] Share Application Money (Pending Allotment) |
|
|
2482.400 |
|
|
3] Reserves & Surplus |
|
|
77329.800 |
|
|
4] (Accumulated Losses) |
|
|
0.000 |
|
|
NETWORTH |
|
|
105522.200 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
|
|
216732.300 |
|
|
2] Unsecured Loans |
|
|
7111.600 |
|
|
TOTAL BORROWING |
|
|
223843.900 |
|
|
DEFERRED TAX LIABILITIES |
|
|
607.800 |
|
|
|
|
|
|
|
|
TOTAL |
|
|
329973.900 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
|
|
102544.300 |
|
|
Capital work-in-progress |
|
|
175083.900 |
|
|
|
|
|
|
|
|
INVESTMENT |
|
|
3970.200 |
|
|
DEFERRED TAX ASSETS |
|
|
638.700 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
|
|
52225.000
|
|
|
Sundry Debtors |
|
|
5147.600
|
|
|
Cash & Bank Balances |
|
|
9210.000
|
|
|
Other Current Assets |
|
|
11296.000
|
|
|
Loans & Advances |
|
|
30251.100
|
|
Total
Current Assets |
|
|
108129.700
|
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
|
|
24331.500
|
|
|
Other Current Liabilities |
|
|
33101.200
|
|
|
Provisions |
|
|
2960.200
|
|
Total
Current Liabilities |
|
|
60392.900
|
|
|
Net Current Assets |
|
|
47736.800
|
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
|
|
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
|
|
329973.900 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
||
|
|
SALES |
|
|
|
||
|
|
|
Income |
150384.500 |
162738.700 |
123015.000 |
|
|
|
|
Other Income |
3011.600 |
5367.900 |
5260.900 |
|
|
|
|
TOTAL (A) |
153396.100 |
168106.600 |
128275.900 |
|
|
|
|
|
|
|
||
|
Less |
EXPENSES |
|
|
|
||
|
|
|
Cost of Materials Consumed |
89941.100 |
89340.700 |
|
|
|
|
|
Purchase of Traded Goods |
2055.900 |
1670.300 |
|
|
|
|
|
Energy Cost |
28223.400 |
30466.800 |
|
|
|
|
|
Changes in Inventories of Finished Goods, Work
in Progress and Stock in Trade |
(270.700) |
9692.700 |
|
|
|
|
|
Employee Benefits Expenses |
3117.400 |
3899.800 |
110948.900 |
|
|
|
|
Manufacturing and Asset Maintenance |
4457.500 |
4415.800 |
|
|
|
|
|
Administrative Expenses |
2287.700 |
3562.600 |
|
|
|
|
|
Selling & Distribution Expenses |
5360.700 |
5683.100 |
|
|
|
|
|
Exchange Variation and Derivative Losses
(net) |
6589.000 |
3723.000 |
|
|
|
|
|
Exceptional Item |
13465.500 |
0.000 |
|
|
|
|
|
TOTAL (B) |
155227.500 |
152454.800 |
110948.900 |
|
|
|
|
|
|
|
||
|
Less |
PROFIT/(LOSS)
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
(1831.400) |
15651.800 |
17327.000 |
||
|
|
|
|
|
|
||
|
Less |
FINANCIAL
EXPENSES (D) |
24809.800 |
18629.900 |
12187.400 |
||
|
|
|
|
|
|
||
|
|
PROFIT/(LOSS)
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D)
(E) |
(26641.200) |
(2978.100) |
5139.600 |
||
|
|
|
|
|
|
||
|
Less |
DEPRECIATION/
AMORTISATION (F) |
15622.100 |
9863.700 |
8914.600 |
||
|
|
|
|
|
|
||
|
|
PROFIT/(LOSS)
BEFORE TAX (E-F) (G) |
(42263.300) |
(12841.800) |
(3775.000) |
||
|
|
|
|
|
|
||
|
Less |
TAX (H) |
14413.900 |
(326.200) |
2112.300 |
||
|
|
|
|
|
|
||
|
|
PROFIT/(LOSS)
AFTER TAX (G-H) (I) |
(27849.400) |
(12515.600) |
(1662.700) |
||
|
|
|
|
|
|
||
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
||
|
|
|
FOB Value of Exports |
36927.900 |
41557.500 |
20227.600 |
|
|
|
|
Others |
2472.900 |
1872.600 |
1622.200 |
|
|
|
TOTAL EARNINGS |
39400.800 |
43430.100 |
21849.800 |
||
|
|
|
|
|
|
||
|
|
IMPORTS |
|
|
|
||
|
|
|
Raw Materials |
33809.200 |
32993.200 |
8835.600 |
|
|
|
|
Production Consumables, Stores and Spares and Fuel |
6540.200 |
9387.800 |
28469.100 |
|
|
|
|
Capital Goods |
3315.500 |
3762.700 |
11199.600 |
|
|
|
|
Traded Goods |
0.000 |
17.300 |
358.300 |
|
|
|
TOTAL IMPORTS |
43664.900 |
46161.100 |
48862.600 |
||
|
|
|
|
|
|
||
|
|
Earnings Per
Share (Rs.) |
(10.59) |
(4.84) |
(0.72) |
||
KEY RATIOS
|
PARTICULARS |
|
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
PAT / Total Income |
(%) |
(18.16)
|
(7.45) |
(1.30) |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
(28.10)
|
(7.89) |
(3.07) |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
(11.34)
|
(4.46)
|
(1.79)
|
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
(0.59)
|
(0.14)
|
(0.04)
|
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt /Networth) |
|
3.82
|
2.69 |
2.12 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
0.50
|
0.50 |
1.79 |
FINANCIAL ANALYSIS
[all figures are
in Rupees Millions]
DEBT EQUITY RATIO
|
Particular |
31.03.2012 |
31.03.2013 |
|
|
Rs. In
Millions |
Rs. In
Millions |
|
Share Capital |
26711.100 |
28418.000 |
|
Reserves & Surplus |
63823.500 |
42617.100 |
|
Net worth |
90534.600 |
71035.100 |
|
|
|
|
|
long-term borrowings |
166645.400 |
228179.200 |
|
Short term borrowings |
76614.000 |
42871.000 |
|
Total
borrowings |
243259.400 |
271050.200 |
|
Debt/Equity
ratio |
2.687 |
3.816 |
YEAR-ON-YEAR GROWTH
|
Year
on Year Growth |
31.03.2011 |
31.03.2012 |
31.03.2013 |
|
|
Rs. In
Millions |
Rs. In
Millions |
Rs. In
Millions |
|
Sales |
123015.000 |
162738.700 |
150384.500 |
|
|
|
32.292 |
(7.591) |
NET PROFIT MARGIN
|
Net
Profit Margin |
31.03.2011 |
31.03.2012 |
31.03.2013 |
|
|
Rs. In
Millions |
Rs. In
Millions |
Rs. In
Millions |
|
Sales
|
123015.000 |
162738.700 |
150384.500 |
|
Profit |
(1662.700) |
(12515.600) |
(27849.400) |
|
|
(1.35%) |
(7.69%) |
(18.52%) |
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 |
No |
|
10] |
Designation of contact
person |
No |
|
11] |
Turnover of firm for last
three years |
Yes |
|
12] |
Profitability for last
three years |
Yes |
|
13] |
Reasons for variation
<> 20% |
-- |
|
14] |
Estimation for coming
financial year |
No |
|
15] |
Capital in the business |
Yes |
|
16] |
Details of sister concerns |
Yes |
|
17] |
Major suppliers |
No |
|
18] |
Major customers |
No |
|
19] |
Payments terms |
No |
|
20] |
Export / Import details
(if applicable) |
No |
|
21] |
Market information |
-- |
|
22] |
Litigations that the firm
/ promoter involved in |
-- |
|
23] |
Banking Details |
Yes |
|
24] |
Banking facility details |
Yes |
|
25] |
Conduct of the banking
account |
-- |
|
26] |
Buyer visit details |
-- |
|
27] |
Financials, if provided |
Yes |
|
28] |
Incorporation details, if
applicable |
Yes |
|
29] |
Last accounts filed at
ROC |
Yes |
|
30] |
Major Shareholders, if
available |
No |
|
31] |
Date of Birth of
Proprietor/Partner/Director, if available |
No |
|
32] |
PAN of
Proprietor/Partner/Director, if available |
No |
|
33] |
Voter ID No of Proprietor/Partner/Director,
if available |
No |
|
34] |
External Agency Rating,
if available |
Yes |
UNSECURED LOAN:
|
Particulars |
As on 31.03.2013 Rs. in Millions |
As on 31.03.2012 Rs. in Millions |
|
LONG TERM BORROWINGS |
|
|
|
Dollar / Rupee
Notes |
|
|
|
--From Banks |
1974.500 |
1942.700 |
|
--From others |
29.700 |
37.900 |
|
Buyers Credit for Capital Expenditure |
0.000 |
6.900 |
|
Sales Tax Deferral Loan |
338.800 |
338.800 |
|
Long Term maturities of Finance Lease obligations |
18.300 |
29.600 |
|
Inter Corporate
Deposits |
|
|
|
--From Others |
541.700 |
0.000 |
|
SHORT TERM
BORROWINGS |
2903.000 |
|
|
Inter corporate Deposits from related parties |
11284.800 |
0.000 |
|
|
|
|
|
Total |
14187.800 |
2355.900 |
INDEX OF CHARGE:
|
Sr. No. |
Charge ID |
Date of Charge
Creation/Modification |
Charge amount
secured |
Charge Holder |
Address |
Service Request Number (SRN) |
|
1 |
10450965 |
28/09/2013 |
60,000,000,000.00 |
SBICAP
TRUSTEE COMPANY LIMITED |
202,
MAKER TOWER, 'E', CUFFE PARADE, COLABA, MUMBAI – 400 005, MAHARASHTRA, INDIA |
B85701035 |
|
2 |
10452159 |
26/09/2013 |
866,933,200.00 |
SBICAP
TRUSTEE COMPANY LIMITED |
202,
MAKER TOWER, 'E', CUFFE PARADE, COLABA, MUMBAI – 400 005, MAHARASHTRA, INDIA |
B86276730 |
|
3 |
10449813 |
24/09/2013 |
2,506,340,000.00 |
SBICAP
TRUSTEE COMPANY LIMITED |
202,
MAKER TOWER, 'E', CUFFE PARADE, COLABA, MUMBAI – 400 005, MAHARASHTRA, INDIA |
B85302016 |
|
4 |
10452157 |
13/09/2013 |
3,250,000,000.00 |
INDIAN
OVERSEAS BANK |
229,
BAKHTAWAR, GROUND FLOOR, NARIMAN POINT, MUMBAI – 400 021, MAHARASHTRA, INDIA |
B86275625 |
|
5 |
10448499 |
10/08/2013 |
7,000,000,000.00 |
YES
BANK LIMITED |
NEHRU
CENTRE, 9TH FLOOR, DISCOVERY OF INDIA, DR. A B ROAD. WORLI, MUMBAI – 400 018,
MAHARASHTRA, INDIA |
B84760941 |
|
6 |
10441614 |
29/07/2013 |
5,384,700,000.00 |
SBICAP
TRUSTEE COMPANY LIMITED |
202,
MAKER TOWER, 'E', CUFFE PARADE, COLABA, MUMBAI – 400 005, MAHARASHTRA, INDIA |
B81456519 |
|
7 |
10433365 |
26/06/2013 |
1,320,000,000.00 |
SBICAP
TRUSTEE COMPANY LIMITED |
202,
MAKER TOWER, 'E', CUFFE PARADE, COLABA, MUMBAI – 400 005, MAHARASHTRA, INDIA |
B78096948 |
|
8 |
10433227 |
05/06/2013 |
5,000,000,000.00 |
SBICAP
TRUSTEE COMPANY LIMITED |
202,
MAKER TOWER, 'E', CUFFE PARADE, COLABA, MUMBAI – 400 005, MAHARASHTRA, INDIA |
B78043742 |
|
9 |
10423211 |
02/05/2013 |
500,000,000.00 |
SBICAP
TRUSTEE COMPANY LIMITED |
202,
MAKER TOWER, 'E', CUFFE PARADE, COLABA, MUMBAI – 400 005, MAHARASHTRA, INDIA |
B74225921 |
|
10 |
10418593 |
12/04/2013 |
816,637,500.00 |
SBICAP
TRUSTEE COMPANY LIMITED |
202,
MAKER TOWER, 'E', CUFFE PARADE, COLABA, MUMBAI – 400 005, MAHARASHTRA, INDIA |
B72850175 |
NATURE OF OPERATION:
Subject owns and operates an integrated steel manufacturing unit for manufacturing of fiat rolled products at Hazira - District Surat, a Precoated facility at Pune, a Beneficiation Plant at Kirandul, Slurry Pipeline, Peptization Plant at Vizag and at Paradeep. The Company is also in the process of setting up a Beneficiation Plant at Dabuna (Odisha) and another Peptization Plant at Paradeep. The Company also operates Processing and Distribution centres, Hypermarts and Express Marts at various locations across India.
OPERATIONS:
Year 2012 was a gloomy year
for world economy as the recessionary trends continued globally. With Eurozone crisis and China slowdown, industries observed
much weaker growth. Indian steel industry took a major hit due to a slower global and ban on iron ore mining in Karnataka as well as Coal scam issues.
Post expansion to 10 MTPA Steel Complex, your Company become the largest single location fiat steel producer in the country and the fourth largest such producer globally. With Blast Furnace and Corex joining the previous DRI (Direct Reduced Iron) technology, your company has now greater flexibility in usage of raw materials. Additionally, the by-product gases generated by these two new units can suitably replace natural gas at several places in your integrated steel complex, thereby reducing dependence on expensive natural gas sources from external providers. Your Company is now able to offer the entire range of fiat products - from thin strips to pipes as well as cold rolled and coated products.
GLOBAL OVERVIEW:
FY 2013 remained a sluggish year for the global steel industry. Overall, it grew by a mere 0.72% during 2012 as per the latest World Steel Association estimates -total crude steel production in 2012 was 1,547 million MT vis-a-vis 1,536 million MT in 2011.
Country-wise performance largely reflected disparities linked to macro-economic environment and operating dynamics in respective economies. China continued to maintain its dominance with a 46.3% share in total crude steel production exhibiting a 2.1% growth over 2011 – linked mainly to domestic demand. Japanese (2nd largest producer) steel output contracted by 0.4% despite heavy support for exports from a devalued currency. United States, India and Russia - the other top producers - grew by 2.7%, 5.6% and 2.2% respectively in terms of crude steel production. Economic recession in Europe implied contraction in local steel demand. There were scattered opportunities in other geographies.
Capacity utilization rates remained below 80% -exhibiting a serious challenge facing the industry. Correction in prices of primary raw materials - i.e., Iron Ore and Coking Coal - lagged the ability of the industry to sustain revenue realization. This created margin pressure and compounded financial problems for the steel industry. Consequently, capacity outages, particularly in Europe, became inevitable due to prevailing lackluster demand and high operating cost. Overall, industry performance hinged upon the ability of producers to extend competitive prices to customers often sub-optimal to operating cost.
The outlook for FY 2014 is even more difficult than FY2013. Global steel production is expected to remain fiat to moderate growth. China is expected to maintain its momentum in steel production - a core sector offering large-scale employment. All other regions of the world are expected to be saddled with over-capacity and are expected to curtail production in order to remain market-relevant. Global steel consumption is likely to remain fiat to decline as Fixed Asset Investment and steel intensity decline during the FY 2014.
DOMESTIC OVERVIEW:
India's overall steel consumption grew by only 3.2% in 2012 to around 72 million MT due to subdued demand from across consuming sectors like infrastructure and construction. The domestic crude steel production grew by 5.6% in 2012 to 78 million MT.
Many producers in India commissioned additional capacity during the year. Further capacity addition, in both public as well as private sector, is planned during FY2014 due to anticipated future demand, particularly considering that India's per capita consumption low. India's per capita steel consumption is still too low (59 kg compared to 1157 kg in South Korea, 507 kg in Japan, 460 kg in China and 235 kg in the North America).
However, in the short to medium term, this will lead to excess domestic capacity and is likely to create additional margin pressure for the Indian steel industry already saddled with high costs and cheap imports especially from Japan and South Korea, which enjoy a preferential import duty.
AWARDS AND ACCOLADES:
·
National Safety Award from JCSSI "ISPAT SURAKSHA
PURASKAR 2013" for the year 2011 and 2012 from Joint Committee on Safety,
Health & Environment (JCSSI) under various categories for Outstanding Performance
in the field of HSE.
·
HSE topped at India Manufacturing Excellence Award
(IMEA) assessment audit with a score of 77.7 and has set a benchmark among all
Industries & Topped Metal Sectors across India in a survey conducted by The
Economic Times - India Manufacturing Excellence Awards in Partnership with
Frost & Sullivan.
·
Gujarat Safety Council in association with Directorate
of Industrial Safety & Health Awarded Dr. Anil Jain, "Safety Man of
the Year 2012". The Award was presented by Shri.
Saurabh Patel, Hon'ble
Minister, Gujarat State Govt. at 34th Annual Safety Conference
organized at Ahmedabad.
·
"Safety Innovation Award-2012" from the
Institution of Engineers (India). Award presented by Dr. Narendra
Jadhav - Member Planning Commission at inaugural function
of "Safety Convention 2012: Safety in Sustainable Development".
·
Runners up for "Excellence in Safety - Large
Enterprises" Manufacturing Today Awards 2012.
·
Green Rating Project, Three Leaves Award, the Highest
among Indian Steel Plants Awarded by Center for Science and Environment (CSE).
This is a very prestigious award and the Company is rated 2nd
amongst 22 steel plants were evaluated. The award was presented by Shri. Montek Singh Ahluwalia, Dy. Chairperson,
Planning Commission and Smt. Jayanthi
Natarajan, Union Minister of State for Environment
& Forests in
·
4th June 2012.
·
Green Environmental Contest awarded by Baroda
Productive Council for the year 201112 and Essar
Steel stood first amongst all the industries of Gujarat.
·
Gold Safety Award 2012 for excellent achievements in
Safety management system from Greentech Foundation,
New Delhi.
·
Silver Environment Award 2012 for excellent
achievements in Environment Management system from Greentech
Foundation, New Delhi
·
Best Safety Practices Award 2012 from Deccan Chamber of Commerce, Industries and Agriculture , Pune.
·
"Gold Award - Metals Sector, Mega Large
Business" by Indian Manufacturing Excellence Awards-2012 sponsored by The
Economic Times.
·
Quality Circle Forum Of India (QCFI) - Baroda (Gold
Award & Sarvashetha Puraskar
Award).
·
Gold Award in State Level 5'S' competition organized
by QCFI Baroda.
·
Diamond Award in Lean Six Sigma Presentation organized
by Concept Business Excellence.
·
Commendation award in QCI-DL Shah National Award for
Quality.
·
Steel Hazira bagged FICCI
Water Efficiency Award at the Water Awards 2012 presented by FICCI (Federation
of Indian Chambers of Commerce & Industry), in association with
HSBC.
·
The Company has been certified with a PLATINUM AWARD
second time in a row by Caterpillar worldwide. Last year we had got the
Platinum Award and it was a quite a challenge to retain the Platinum Award this
time.
·
SAP Awards for Customer Excellence (ACE) 2012
recognized the Company for being the "Best Run Manufacturing
Organization" at a ceremony in Mumbai on 19th October, 2012.
CERTIFICATE
AND RECOGNITION:
·
Gujarat Safety Council in association with Directorate of Industrial
Safety and Health Govt. of Gujarat awarded Essar
Steel India Ltd., Safety Honour and Merit
Certificates for the year 2011:
·
HRC Division: Certificate of Honour
- for achieving more than 3 Million Accident Free Man Hours.
·
HBI Division: Certificate of Merit - for achieving
more than 2 Million Accident Free Man Hours.
·
Pipe Division: Certificate of Merit - for achieving more
than 2 Million Accident Free Man Hours.
·
National Safety Council of India recognized Essar Steel India Ltd., Hazira
for Landmark Safety Achievement of 35.55 Million LTI Free Man hours.
·
41st National Safety Day Celebrations of Essar Steel India Ltd. recognized by National Safety
Council of India by publishing clips in Front Cover Page of Industrial Safety
Chronicle (Vol. No. XLIII April-June 2012).
·
Essar Steel India Limited Hazira received recognition from WSA regarding
participation in their CO2 data collection program.
·
Certificate of Appreciation for Commendable Fire
Fighting Operation at IOCL Terminal, Hazira, from Shri. D. C. Chaudhari,
Director-Directorate of Industrial Safety & Health Gujarat on the occasion of
Shram Awards, State Level Prize Distribution Ceremony
held at Surat, Gujarat. For Commendable Fire Fighting
Operation by Essar Steel Team at IOCL Terminal Fire, Hazira, Mr. Rakesh Chaturvedi (Sr. Manager-Fire Services EStIL)
& Mr. Narendra Doot
(Asst. Manager-Fire Services, EStIL) received
Certificates for their valiant Heroism from Shri. Ganpat Vasava, Hon'ble Cabinet Minister, Govt. of Gujarat on the eve of
National Republic Day at Surat.
· The Company presented 3 Projects on Environment Improvement at Vibrant Gujarat Summit held at Gandhinagar by Govt. of Gujarat. The initiatives were well appreciated by Gujarat State Environment Minister, Gujarat Pollution Control Board (GPCB) Chairman & Member Secretary.
·
Company's Carbon Management Practices were lauded at
the International Carbon Disclosure Project (CDP), a recent event held at the
Bombay Stock Exchange (BSE) at Mumbai. Under Carbon Disclosure Leadership Index
(CDLI) Essar Steel scored 80 out of 100.
·
Recognition of three Essar Steel Employees under various categories in Safety
Competition organized by Gujarat Safety Council. The Awards were presented to
them in 34th Annual Safety Conference organized by Gujarat Safety council in
association with Directorate of Industrial Safety and Health at Ahmedabad.
·
Recognition of two Essar
Steel Employees' Poster, in Annual JCSSI Calendar Competition 2013. These
posters were published in the Annual JCSSI Calendar for the year 2013.
·
The Company participated in Workshop "Strategic
Development towards Best Safety Practices and Human Interface" Organized
by Essar Power Vadinar in
Coordination with Directorate of Industrial Safety and Health, Govt. of
Gujarat.
·
The Company participated in Conference organized on
"Safety for Sustainable Manufacturing Growth" by Federation of Indian
Chambers of Commerce & Industry (FICCI) inaugurated by Shri.
Mallikarjun Kharge, Union
Minister for Labour and Employment.
·
Tata Steel Executives visited our
Hazira Complex to witness our Benchmark HSE Practices
& Initiatives. Quote, "We are thankful to you for providing us the
opportunity of getting exposed to the best of safety practices embedded in Essar Culture", Unquote.
·
As part of Confederation of Indian Industry (CII)
Mission on Best Practices in Safety, Health & Environment (SHE) to Hazira, Essar Steel promoted Best
HSE Practices across the State of Gujarat.
FIXED ASSETS:
Tangible Assets
· Freehold Land
· Leasehold Land
· Buildings
· Plant and Machinery
· Furniture and Fixtures
· Office Equipment
· Computers
· Vehicles
· Ships and Vessels
· Railway Sidings and Wagons
· Aircraft
Intangible Assets
Software
AS PER WEBSITE
PRESS RELEASES
ESSAR STEEL TO RAISE RS 22410.000 MILLIONS BY SELLING 3 NON-CORE ASSETS
Essar Steel aims to raise a minimum of Rs 22410.000 Millions by selling three non-core assets for paring some
of its $4 billion (around Rs 244000.000
Millions) debt and reducing the strain on its balance sheet.
The Ruias-promoted leading steelmaker has
convened an extraordinary shareholders' meeting on August 24, seeking their
approval.
The move was necessitated due to 2.22 times rise in Essar's
standalone net loss in the last financial year to Rs
27850.000 Millions. Its interest payments had also risen by nearly 41 per cent
to Rs 31400.000 Millions, while total expenditure, at
Rs 150790.000 Millions, had overshot its total
income, at Rs 150380.000 Millions.
"In order to improve liquidity, reduce debt burden and to focus on the
core business area, a financing plan has been worked out. Under
this plan it is proposed to sell out or otherwise transfer some of the
undertakings/assets/projects to strategic investor/SPV company, ongoing concern
basis," the company said in its notice for the EGM.
Simultaneously, the company will sign long term supply/ service
agreement with the buyer to ensure smooth functioning of operations.
According to the plan, Essar is in advanced
stage of negotiations with Inox Air Products to sell
one its undertaking which is in the business of production of oxygen, nitrogen
and argon etc for captive supply of company's needs at its Hazira
plant "for not less than Rs 800 crore".
It is also planning to sell 1.53 million tonnes
per annum under construction coke oven plant project and 253 km long Odisha slurry pipeline project between Dabuna
and Paradeep for "not being lower than (their)
book value".
The book values of coke oven plant and slurry pipeline are Rs 642.05 crore and Rs 799.82 crore, respectively.
A company spokesperson said that "these are none core assets to
steel making and forms insignificant part of the total assets of the company. Essar Steel proposes to outsource these assets since it can
be operated more efficiently by the company's specialising
in these activities."
Early this month, the company had said it will be raising $2 billion
through pre-export finance to retire rupee-denominated debt. The move is aimed
at freeing Essar's balance sheet from fluctuation in
currency rates and ensuring at least Rs 850 crore annual savings on interest payments.
The company already has RBI permission to raise upto
$2 billion through export securitisation and is
aiming to complete it during the current fiscal. In June, the company had
raised $1 billion through External Commercial Borrowing (ECB), which will
result in Rs 450 crore
savings annually.
Essar has invested about Rs
37,000 crore to increase its steel making capacity to
10 MTPA from 4.6 MTPA. The new capacity was envisaged as an integrated facility
with dedicated iron ore pellet supplies from a pellet plant in Odisha, a dedicated port, coal based power plant and a 400 kva transmission line.
ESSAR STEEL HOPES TO RAISE $2 BN FY14 END TO PARE RE DEBT
Mumbai: Essar Steel has said it hopes to raise
USD 2 billion through pre-export finance by the end of the current financial
year to retire part of its rupee debt, a company official has said.
Pre-export funds are borrowed against confirmed orders from foreign
buyers.
"At present, we are in talks with financial institutions. We hope
to raise the money by the end of the financial year," an Essar Steel official said.
Earlier, the company had said it planned to raise USD 2 billion through
pre-export finance to retire rupee-denominated debt, which will ensure at least
Rs 8500.000 millions of annual savings through lesser
interest outgo.
The company has around 20,000 crore debt on
its books and a significant portion of it is rupee-loans.
The official said that recent rupee fluctuation will not impact its
future fund raising plans in dollar terms as it has natural hedge against the forex fluctuation.
When a company exports and imports, it is said to have natural hedge as any
rise in import price due to fall in the rupee gets compensated through gain in
exports.
According to the firm, interest cost will come down through refinancing
of debt from around 12.5 percent to 6-7 percent.
"Not only the interest cost will come down, this will also help us
increase the tenor of these loans," the official said.
The firm had already raised USD 1 billion through external commercial
borrowings (ECB) in June with an annual cost saving of Rs
4500.000 milions
Essar Steel has a capacity of 14 million tonne per annum with presence in India, Canada, the US, the
West Asia and Asia.
ESSAR STEEL PROMOTERS TO INFUSE UP TO RS 10000.000 MILLIONS EQUITY
Promoters of Essar Steel
will infuse an additional equity of up to Rs
1.0000.000 millions into the loss making steelmaker by acquiring its shares on
a preferential basis. The move is aimed at meeting the company's capex and operational requirements as well as strengthening
the capital base, Essar said in its Annual General
Meeting notice, while seeking shareholders approval. The AGM is scheduled to be
held tomorrow in Hazira, Gujarat.
The
capital infusion by the promoters will also help the company in reducing strain
on its balance sheet as its consolidated net loss had widened by over 2.5 times
in the last fiscal to Rs 51050.0000 millions. Its
interest payments had also risen by over 32 percent to Rs
29550.000 millions, while the current liabilities (Rs
214984.800 millions) have exceeded its current assets (Rs.
95930.190 millions) by Rs. 119052.900 millions in
2012-13.
The
unlisted leading steelmaker has proposed to make the preferential allotment in
next 12 months to the promoters. Following this, promoters' stake in the
company will increase marginally by 0.18 percent to 97.45 percent.
"Resolved
that...consent of the company be and is hereby accorded to the Board of
Directors of the company to issue and allot...on preferential basis such number
of equity shares...for an amount not exceeding Rs
10000.000 millions to Essar Steel Asia Holdings Ltd,
Mauritius/Essar Steel Ltd, Mauritius...," the
company said in the AGM notice.
The
Ruia family, led by Shashi
and Ravi Ruia, are the
promoters of the company through Essar Steel Asia
Holdings Ltd, Mauritius. According to the Annual Report of Essar,
its promoters infused Rs.7648.600 millions equity into the company between
November, 2012 and June, 2013 by acquiring over Rs.
168.100 Millions shares.
As
of March 2013, the company's paid up equity capital was Rs
2,7982.000 millions "In order to raise balance funds and to meet fund
requirements, enabling resolution is required as proposed at item no 10 of the
(AGM) notice," the company said.
The
company said it has approached a Chartered Accountant for valuation of shares
and number of shares to be allotted would be decided accordingly. Last month,
the company had taken shareholders approval to raise a minimum of Rs. 22410.000 Millions by selling three non-core assets for
paring some of its USD 4 billion (around Rs.
260000.000 millions) debt and reducing the strain on its balance sheet.
Essar also has plans to raise USD 2 billion through pre-export finance to
retire majority of its rupee-denominated debt and is aiming to complete its
during the current fiscal. The move would help the company in reducing interest
costs by about Rs. 8500.000 millions, enhancing loan
tenure and negating the impact of fluctuation in currency rates. The company,
which has invested Rs 370000.000 millions to increase
its capacity to 10 MTPA, has already secured Reserve Bank's permission for raising
dollar loans
ESSAR STEEL MAY RAISE
PRICES BY RS 1,000/TN NEXT MONTH
Mumbai February 26,
2014
Private steel firm Essar Steel is likely to raise product prices by around Rs 1,000 per tonne next month on the back of rise in input costs and demand uptick during the past two months among others.
"Essar Steel is likely to raise product prices by around Rs 1,000 per tonne next month. This is primarily cost push along with some demand uptick in the fourth quarter," according to a source.
The steel firm has also seen rise in demand for exports in recent months and expects the momentum to continue, the source said.
"If you see the steel prices in the global market, they have firmed up by around USD 20-30 in recent time. So, that will reflect in the domestic prices soon," the source said.
The company officials could not be contacted.
Earlier, JSW Steel said it had raised product prices up to Rs 750 per tonne to absorb the rising cost.
While steel companies have increased prices three times in the past few months, industry experts are sceptical about its complete absorption by the market.
"Given the weakness in the steel consumption, it remains to be seen whether such price hike is sustainable," Jayanta Roy, senior vice-president and co-head, corporate sector ratings at Icra, said.
Essar Steel, which is fully integrated flat steel manufacturer, has a capacity of 14 million tonne per annum with presence in India, Canada, the US, West Asia and Asia.
ESSAR STEEL PREPAYS RS 2050.000 MILLIONS LOAN TAKEN FROM AXIS BANK
NEW DELHI, MARCH 10: Ruias-promoted Essar Steel today said it prepaid Rs 2050.000 Millions of loans taken from Axis Bank.
The company had issued secured redeemable non-convertible debentures of Rs 1.000 Million each aggregating Rs 2050.000 Millions to the private sector lender.
The coupon rate on the securities had been revised to 16.5 per cent from 13.4 per cent originally.
The company has prepaid 2,050 debentures of Rs 1.000 Million each held by Axis Bank, the sole holder, after taking its consent and approval, the steel maker said in a BSE filing.
Essar Steel has a capacity of 14 million tonnes per annum with presence in India, Canada, the US, West Asia and Asia.
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No exist designating subject or any of its beneficial owners, controlling
shareholders or senior officers as terrorist or terrorist organization or whom
notice had been received that all financial transactions involving their assets
have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for
violating money-laundering, anti-corruption or bribery or international
economic or anti-terrorism sanction laws or whose assets were seized, blocked,
frozen or ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No exist to suggest that subject is or was
the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper payments
to government officials for engaging in prohibited transactions or with
designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority for
any financial crime or under any formal investigation by a competent government
authority for any violation of anti-corruption laws or international anti-money
laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws, regulations
or policies that prohibit, restrict or otherwise affect the terms and
conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.59.95 |
|
|
1 |
Rs.99.36 |
|
Euro |
1 |
Rs.82.15 |
INFORMATION DETAILS
|
Information
Gathered by : |
HNA |
|
|
|
|
Report Prepared
by : |
NTH |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
4 |
|
PAID-UP CAPITAL |
1~10 |
4 |
|
OPERATING SCALE |
1~10 |
3 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
3 |
|
--PROFITABILIRY |
1~10 |
3 |
|
--LIQUIDITY |
1~10 |
3 |
|
--LEVERAGE |
1~10 |
3 |
|
--RESERVES |
1~10 |
3 |
|
--CREDIT LINES |
1~10 |
3 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
DEFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
|
|
|
|
TOTAL |
|
29 |
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.