MIRA
INFORM REPORT
|
Report Date : |
04.08.2014 |
IDENTIFICATION DETAILS
|
Name : |
V.M. SALGAOCAR AND BROTHER PRIVATE LIMITED |
|
|
|
|
Registered
Office : |
Salgaocar House, |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as
on) : |
31.03.2013 |
|
|
|
|
Date of
Incorporation : |
26.06.1965 |
|
|
|
|
Com. Reg. No.: |
24-000048 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs. 10.000 Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
U35111GA1965PTC000048 |
|
|
|
|
PAN No.: [Permanent Account No.] |
AAACV5950B |
|
|
|
|
Legal Form : |
Private Limited Liability Company |
|
|
|
|
Line of Business
: |
The company is engaged mainly in mining / processing of ores, hotel
business and wind power generation (non conventional energy). |
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|
|
|
No. of Employees
: |
Information declined by the management |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (53) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Status : |
Good |
|
|
|
|
Payment Behaviour : |
Regular |
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|
|
|
Litigation : |
Clear |
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|
|
Comments : |
Subject is an old and one of the biggest business group in Goa. It is
a will established company having fine track record. The company possesses a strong financial profile marked by healthy networth
base and sound liquidity position comfortable capital structure characterised
by zero debt. Management has reported a drastic dip in its net profitability during
FY 13 owing to a nearly two year long mining ban due to illegal mining
activities. However, trade relations are fair. Business is active. Payment terms
are reported as regular and as per commitments. In view of experienced promoters, the subject can be considered good
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.
INDIAN ECONOMIC OVERVIEW
N E W S
As per the latest IMF study, the total weigh of emerging markets in the
GDP of the world on a purchasing power parity basis has seen a sizeable shift.
It highlights how as against 51 % in 2005, the emerging economies now account
for close to 56 % of the global purchasing power GDP as per the latest survey.
And with the emerging economies growing at a faster rate than their developed
counterparts, there are every possibility that the their share goes up further
in the coming years. China may surpass the US over the next few years.
Politics and economics are very intricately connected. They tend to
influence each other in ways that could be very complex and far-reaching. The
prospects of the India’s economy have been seriously compromised due to
political corruption. High inflation, poor standard of living are to a great
extent a result of rampant corruption in the country. China on the other hand,
seems to be facing diametrically opposite challenge. American hedge fund
manager Jim Chanos has been keenly following the political and economic development
in the dragon economy and has figured out something that is quite worrying. He
is of the view that the Chinese economy could be heading toward trouble on
account of new Chinese President Xi Jingping’s very aggressive anti-corruption
drive. Chanos believes tat many things such as apartment sales, luxury
products, etc. were largely bought with dirty money. And it is now beginning to
impact consumption. This may indeed be bad news for an economy that is
struggling to transition from an investment-driven export-oriented economy to a
domestic consumption-driven economy.
A study published by Firstpost has revealed that asset classes like real
estate and equities were the biggest beneficiaries of the liberalization
policies. A firm called Ciane Analytics studied returns from assets
including equities, gold, fixed deposits, G-Secs and real estate since 1991.
Real estate outperformed every other asset classes during the 23-year period
with an annualized return of 20 % ! Equities came in second with annualized
return of 15.5 % ! However, while these returns may seem mouthwatering, the
fact is that the return from equities adjusted for inflation came down to just
7.1 %.
Some brief news are as under
. R-Power to buy Jaypee’s hydro assets
. Investors await justice in NSEL case
. India seeks MFN status from Pakistan ahead of meeting
. Ukrain’s clashes with rebels hinder MH17 crash investigation
. India exploring merger of state-owned hydro PSUs
..Higher costs weigh down profit growth to slowest in 9 quarters
..Wal-Mart to expand wholesale business in India
. GMR group moves to strengthen balance sheet
. Central Bank to sell 4 % stake to Life Insurance Corporation
. Tata Chemicals plans to raise up to Rs 10000 mn.
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
31-03-2014.
INFORMATION DECLINED
Management Non Co-operative (91-832-2512111)
LOCATIONS
|
Registered Office : |
Salgaocar House, |
|
Tel. No.: |
91-832-2512111 / 2512112 / 2512113 / 2512114 |
|
Fax No.: |
91-832-2513813 |
|
E-Mail : |
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|
Website : |
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|
|
|
Branches : |
Mumbai :
Tel. No.: 91-22-22022009 / 22026224 Fax No.: 91-22-22022996 E Mail: vmsbmumbai@vsnl.net 102, 1st Floor, Ramanashree Chambers, 37, Tel. No.: 91-80-25594970 / 25595623 Fax No.: 91-80-25593065 408, Ashoka Estate, 24. Tel. No.: 91-11-23313183 Fax No.:
91-11-23316143 |
DIRECTORS
As on 20.09.2013
|
Name : |
Mr. Shivanand V. Salgaocar |
|
Designation : |
Managing Director |
|
Address : |
Hira Vihar, House 278, |
|
Date of Birth/Age : |
24.07.1954 |
|
Date of Appointment : |
29.07.1978 |
|
DIN No.: |
00001402 |
|
PAN No.: |
ABYPS1942E |
|
|
|
|
Name : |
Mr. Dattaraj V. Salgaocar |
|
Designation : |
Managing Director |
|
Address : |
Hira Vihar, House 278, |
|
Date of Birth/Age : |
23.05.1957 |
|
Date of Appointment : |
29.07.1978 |
|
DIN No.: |
00105209 |
|
PAN No.: |
ABYPS1941H |
|
|
|
|
Name : |
Mr. Antonio Francisco Costa Pinto |
|
Designation : |
Director |
|
Address : |
654, Mons. G. Rebelo Road, Modsai, Margao – 403601, Goa, India |
|
Date of Birth/Age : |
31.07.1946 |
|
Date of Appointment : |
23.05.2014 |
|
DIN No.: |
00107472 |
|
|
|
|
Name : |
Mr. Gurudas Narcinva Bene |
|
Designation : |
Director |
|
Address : |
Yashodham, Chicalim – 403711, Goa, India |
|
Date of Birth/Age : |
04.03.1934 |
|
Date of Appointment : |
23.05.2014 |
|
DIN No.: |
00319054 |
KEY EXECUTIVES
|
Name : |
Mr. Anthony Barreto |
|
Designation : |
Secretary |
|
Address : |
House, No.228, Mona Nagar, Alto Betim, Provorim, North Goa – 403501, |
|
Date of Birth/Age : |
03.09.1954 |
|
Qualification : |
|
|
Experience : |
|
|
Date of Appointment : |
12.10.2002 |
|
Pan No.: |
ADIPB5466C |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 20.09.2013
|
Names of Shareholders |
|
No. of Shares |
|
Salgaocar V. Shivanand Salgaocar S. Ranjana |
|
18 |
|
Salgaocar Industrial Gases Private Limited, Goa |
|
9608 |
|
Salgaocar Investments Private Limited, Goa |
|
9494 |
|
Salgaocar S. Mnjana Salgaocar V. Shivanand |
|
5 |
|
Salgaocar S. Mnjana Salgaocar V. Shivanand |
|
600 |
|
Salgaocar S. Vivek Salgaocar S. Mnjana |
|
600 |
|
Salgaocar S. Swati Salgaocar V. Shivanand |
|
600 |
|
Salgaocar V. Dattaraj Salgaocar D. Dipti |
|
3006 |
|
Salgaocar Real Estate and Properties Private Limited, |
|
9112 |
|
Salgaocar Holdings Private Limited, |
|
9112 |
|
Shinzawa Chemicals Private Limited, |
|
9112 |
|
Navjyoti Publications Private Limited, |
|
9112 |
|
Salgaocar V. Shivanand Salgaocar S. Ranjana |
|
5075 |
|
Great |
|
4544 |
|
Salgaocar V. Dattaraj Salgaocar D. Dipti |
|
5075 |
|
Bershire Real Estate Private Limited, |
|
4544 |
|
Equinox Realtors Private Limited, |
|
9600 |
|
Srinidhi Real Estate Private Limited, |
|
9600 |
|
Salgaocar V. Shivanand Salgaocar S. Ranjana Salgaocar S. Swati Salgaocar S. Vivek |
|
1183 |
|
Total |
|
100000 |
As on 20.09.2013
Equity Share Break up (Percentage of Total Equity)
|
Category |
Percentage |
|
Bodies corporate |
84.00 |
|
Directors or relatives of Directors |
16.00 |
|
Total |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
The company is engaged mainly in mining / processing of ores, hotel business
and wind power generation (non conventional energy). |
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Products : |
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GENERAL INFORMATION
|
No. of Employees : |
Information declined by the management |
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Bankers : |
·
Indian Bank, Cuffe Parade Colaba, Mumbai –
400005, Maharashtra, India ·
Bank of India, Swatantra Path, New York Branch
277, Park Avenue, Goa |
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Facilities : |
(Rs.
In Millions)
|
|
|
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Banking
Relations : |
--- |
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|
|
|
Auditors : |
|
|
Name : |
S. J. Thaly and Company Chartered Accountants |
|
Address : |
112, |
|
PAN No.: |
AAFFS8177H |
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|
|
|
Subsidiary Company
: |
· Kushavati Mining Private Limited · Castle Rock Tourist Resort Private Limited · Cauvery Mining Company Private Limited · Curti Enterprises Private Limited · Hotel Lapaz Gardens Private Limited · Salgaocar Marine Private Limited · Salgaocar Metals And Minerals Private Limited · Salgaocar Minerals And Ores Private Limited · Vmsalgaocar Corporation Private Limited · Zantye and Company Private Limited · Salgaocar Sports Club Private Limited ·
Aero Mundial Private Limited |
|
|
|
|
Associate : |
· Dhareshwar Real Estates Private Limited · Dudhsagar Investments Private Limited · Goa Minerals Private Limited · Rockmetal Engineers Private Limited · Salgaocar Industrial Gases Private Limited · Aeromundial · Amona Shipyard Private Limited · Goa Publications · Goa Publications Private Limited · Mahadhan Real Estates LLP · Nova Sancoale Services Private Limited · Puratan Real Estates Private Limited · Rishikesh Real Estates Private Limited · Salgaocar Real Estates And Properties Private Limited · Salgaocar Holdings Private Limited · Shivranjani Securities Company Private Limited · V. M. Salgaocar Sales International · Green Hills Developers and Builders Private Limited · Tumkur Minerals Private Limited · Devon Real Estate and Construction Private Limited |
CAPITAL STRUCTURE
As on 20.09.2013
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
100000 |
Equity Shares |
Rs.100/- each |
Rs.10.000 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
100000 |
Equity Shares |
Rs.100/- each |
Rs.10.000 Millions |
|
|
|
|
|
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 |
10.000 |
10.000 |
10.000 |
|
(b) Reserves & Surplus |
20522.322 |
19633.453 |
15901.318 |
|
(c) Money
received against share warrants |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
(2) Share Application money pending allotment |
0.000 |
0.000 |
0.000 |
|
Total
Shareholders’ Funds (1) + (2) |
20532.322 |
19643.453 |
15911.318 |
|
|
|
|
|
|
(3)
Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
0.000 |
785.231 |
745.757 |
|
(b) Deferred tax liabilities (Net) |
73.417 |
74.707 |
112.175 |
|
(c) Other long term liabilities |
26.775 |
28.430 |
35.148 |
|
(d) long-term provisions |
0.000 |
0.000 |
0.000 |
|
Total Non-current Liabilities (3) |
100.192 |
888.368 |
893.080 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a) Short term borrowings |
0.000 |
4.500 |
4.500 |
|
(b) Trade payables |
154.637 |
304.049 |
304.391 |
|
(c) Other current
liabilities |
823.260 |
556.241 |
530.612 |
|
(d) Short-term provisions |
36.277 |
48.672 |
39.471 |
|
Total Current Liabilities (4) |
1014.174 |
913.462 |
878.974 |
|
|
|
|
|
|
TOTAL |
21646.688 |
21445.283 |
17683.372 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i) Tangible assets |
2551.255 |
2881.988 |
3145.618 |
|
(ii) Intangible Assets |
74.672 |
4.553 |
7.518 |
|
(iii) Capital work-in-progress |
1023.927 |
615.614 |
29.388 |
|
(iv)
Intangible assets under development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current Investments |
227.110 |
227.110 |
225.707 |
|
(c) Deferred tax assets (net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
1540.961 |
1123.757 |
863.342 |
|
(e) Other Non-current assets |
0.000 |
0.000 |
0.000 |
|
Total Non-Current Assets |
5417.925 |
4853.022 |
4271.573 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a) Current investments |
2338.415 |
2059.860 |
1239.329 |
|
(b) Inventories |
1141.587 |
830.903 |
972.475 |
|
(c) Trade receivables |
135.198 |
821.741 |
1100.176 |
|
(d) Cash and cash
equivalents |
11246.817 |
11145.101 |
8803.547 |
|
(e) Short-term loans and
advances |
960.998 |
1370.840 |
1166.146 |
|
(f) Other current assets |
405.748 |
363.816 |
130.126 |
|
Total Current Assets |
16228.763 |
16592.261 |
13411.799 |
|
|
|
|
|
|
TOTAL |
21646.688 |
21445.283 |
17683.372 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
|
|
SALES |
|
|
|
|
|
|
|
|
NA |
|
|
|
|
|
Other Income |
|
|
|
|
|
|
TOTAL |
NA |
NA |
NA |
|
|
|
|
|
|
|
|
Less |
|
|
|
|
|
|
|
|
Office Expenses |
|
|
|
|
|
|
Administrative Expenses |
NA |
NA |
NA |
|
|
|
Advertising Expenses |
|
|
|
|
|
|
TOTAL |
NA |
NA |
NA |
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION |
1933.206 |
6174.552 |
4499.042 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION |
480.483 |
463.833 |
218.428 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX |
1452.723 |
5710.719 |
4280.614 |
|
|
|
|
|
|
|
|
|
Less |
TAX |
563.854 |
1978.583 |
1498.361 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
|
888.869 |
3732.136 |
2782.253 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
14238.130 |
10755.994 |
8223.741 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
0.000 |
250.000 |
250.000 |
|
|
BALANCE CARRIED
TO THE B/S |
15126.999 |
14238.130 |
10755.994 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
8888.69 |
37321.36 |
27822.53 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
Return on Total Assets (PBT/Total Assets} |
(%) |
7.12 |
27.72 |
24.56 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.07 |
0.29 |
0.27 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt /Networth) |
|
0.00 |
0.04 |
0.05 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
16.00 |
18.16 |
15.26 |
FINANCIAL ANALYSIS
[all figures are
in Rupees Millions]
DEBT EQUITY RATIO
|
Particular |
31.03.2011 |
31.03.2012 |
31.03.2013 |
|
|
(Rs.
In Millions) |
(Rs.
In Millions) |
(Rs.
In Millions) |
|
Share Capital |
10.000 |
10.000 |
10.000 |
|
Reserves & Surplus |
15901.318 |
19633.453 |
20522.322 |
|
Net
worth |
15911.318 |
19643.453 |
20532.322 |
|
|
|
|
|
|
long-term borrowings |
745.757 |
785.231 |
0.000 |
|
Short term borrowings |
4.500 |
4.500 |
0.000 |
|
Total
borrowings |
750.257 |
789.731 |
0.000 |
|
Debt/Equity
ratio |
0.047 |
0.040 |
0.000 |
LOCAL AGENCY FURTHER INFORMATION
CURRENT MATURITIES OF
LONG-TERM DEBT
Rs. In Millions
|
Particular |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
|
|
|
|
|
Current maturities of long-term debt |
496.319 |
327.510 |
202.772 |
|
|
|
|
|
|
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 |
---------------------- |
|
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 |
Yes |
|
33] |
Voter ID No of Proprietor/Partner/Director, if available |
No |
|
34] |
External Agency Rating, if available |
No |
OPERATIONS:
Iron Ore Business
During the year, the Company’s sale volume of iron ore fell drastically to 0.445 million tons (which was entirely sold in the export market) as against 3.297 million tons achieved during the previous Financial Year 2011-12 (when 3.266 million tons were exported and 0.030 million tons were sold locally). China was the destination for the entire iron ore sold, as supply of higher grade ore to traditional destinations like Japan and South Korea continued to be affected due to delay in renewal of some of their mining leases.
The sharp drop in exports was due to shipments having taken place only during April ~ May, 2012. No exports could be effected post the monsoon off-season period due to the restrictions on mining and transportation in the wake of investigations into illegal mining. Delay in the grant of lease renewals at some of the Company’s mines and the curb on recovery of ore from old dumps also affected production and sales.
The Hon’ble Justice Shah Commission of Inquiry for illegal mining of iron ore and manganese ore, which was appointed by the Government of India for the purpose of making an inquiry into mining of iron ore and manganese ore, submitted their Report on Mines in Goa dated 15.03.2012 and the same was placed before Parliament on 07.09.2012. Shah Commission Report alleged that all modes of illegal mining are being conducted in the State of Goa and suggested various remedial measures, considering the nature of illegalities committed.
In the wake of alleged irregularities pointed out in the Report of the Commission, Government of Goa vide its Order dated 10.09.2012 temporarily suspended all mining operations in the State of Goa w.e.f 11.09.2012 untill further orders. The Order dated 10.09.2012 further stated that the Verification and Clearance Committee will scrutinize the documents, approvals, etc. and mining leases having valid clearance only will be allowed to commence mining operations for the rest of the season.
Subsequently, on 14.09.2012 the Ministry of Environment and Forest, Government of India issued a direction under Section 5 of the Environmental (Protection) Act, 1986 for keeping in abeyance the Environmental Clearance accorded to all the mining leases in the State of Goa, with immediate effect, until further orders. All the project proponents were directed to submit the necessary documents to the Ministry to verify the legality of the Environmental Clearance granted under which each of the mine has been operating.
Further, in Writ Petition (Civil) No.435/2012 filed before the Hon’ble Supreme Court of India by Goa Foundation against Union of India and Others, the Hon’ble Supreme Court, vide its Order dated 05.10.2012 directed the Central Empowered Committee to submit its report to the Hon’ble Supreme Court and in the meanwhile until further Orders, all mining operations in the leases identified in the Shah Commission’s Report and transportation of iron ore and manganese ore from those leases were suspended.
The Company filed an Application before the Hon’ble Supreme Court of India in Writ Petition (Civil) No. 435/2012 for Impleadment/Intervention and took steps for challenging the said Writ Petition. The hearing of the matter in the Hon’ble Supreme Court of India will determine the future course of action. Matter is expected to come up for hearing in mid-September and the Company is hopeful of a favourable Order from the Hon’ble Supreme Court. Various measures/decisions taken by the State Government as well as by the Central Government, particularly from the Ministry of Environment and Forest are also critical to the early resumption of mining.
Meanwhile, while discussions continued with our Japanese and South Korean buyers on the quarterly pricing system under their long-term contracts with them until the stoppage in mining, they did not ship ore to them due to further delay in renewal of one of their mining leases which is critical for producing the ore of quality contracted with them and due to the stoppage of mining during the middle of the year.
Export duty remained at a very high level of 30% affecting the Company’s profitability.
Future Prospects:
The present stoppage of iron ore mining and exports has left the Company with no sales of ore during Financial Year 2013-14 till date. Only lifting of the restriction by the Hon’ble Supreme Court and obtaining related clearances will enable the Company to resume mining and export during the year. The outcome of the hearing of the matter before the Hon’ble Supreme Court is therefore keenly awaited.
A cap on overall volume of mining in Goa at a level lower than exports in the recent past years is a distinct possibility. Reductions in limits of production in environmental clearances of individual mines/leases could also reduce production.
Globally supply of iron ore is increasing substantially as many new projects in which investment was made during the past years of high demand come on-stream. Iron ore prices are therefore expected to stabilize and move lower in the medium-term.
The contract with long-term buyer NSC has expired at the end of the year and that with POSCO will expire at the end of the current year. A decision on initiating discussions to renew these contracts will be taken after reviewing the situation once permission for resumption of mining/exports is obtained.
The Study Group under the Chairmanship of Secretary, Ministry of Mines, appointed for review of royalty rates has recommended a hike in royalty rates on iron ore from 10% to 15% which may be implemented during the current year. A stipulation for payment of an amount equal to royalty on iron ore production for development of the local community under the new mining law due to be implemented would also adversely affect the bottom-line of the Company in future.
As part of its efforts to add to its reserves of ore, the Company continues to work actively to acquire new mining leases in various states of India.
UNSECURED LOAN
Rs. In Millions
|
Particular |
As
on 31.03.2013 |
As
on 31.03.2012 |
|
Short-term borrowings |
|
|
|
Loans and advances from others |
0.000 |
4.500 |
|
Total |
0.000 |
4.500 |
|
|
|
|
INDEX OF CHARGES
|
S.No. |
Charge ID |
Date of Charge
Creation/Modification |
Charge amount
secured |
Charge Holder |
Address |
Service Request
Number (SRN) |
|
1 |
10200202 |
27/01/2010 |
1,000,000,000.00 |
BANK OF INDIA |
POST BOX NO. 17, SWATANTRYA PATH, VASCO DA GAMA, GOA - 403802, INDIA |
A78531860 |
* Date of charge modification
FIXED ASSETS
· Land
· Buildings
· Plant and equipment
· Furniture and fixtures
· Vehicles
· Office equipment
AS PER WEBSITE
PRESS RELEASE
SALGAOCAR BROTHERS
MOVE HIGH COURT OVER PROPERTY DISPUTE
OCT 11, 2013,
MUMBAI: The Salgaocar brothers, one of Goa's biggest business groups, are locked in a battle over separation of the group's assets after one brother accused the other of reneging on a signed agreement.
Shivanand Salgaocar, son of Vasudev Salgaocar, who founded the mines-to-hotels group in the 1950s, has filed a petition in the Bombay High Court asking that a settlement agreed upon by the two brothers be implemented.
He has alleged that the family of Dattaraj Salgaocar had walked out of the agreement, claiming that the agreement was "tax evasive".
At stake are two family mansions in Goa, several offices, iron ore mines, a hotel business and ships worth hundreds of crores.
The case came up for hearing on Thursday. Justice SJ Kathawala said he will hear the petition filed by Shivanand against his brother Dattaraj on October 17. Mumbai-based law firm Dastur Dadhich and Kalambi is representing Shivanand while younger brother Dattaraj is being represented by two law firms - Gagrat and Company and Federal and Rashmikant
The Economic Times has reviewed the petition. ET tried to reach Shivanand who responded saying he's travelling abroad and asked us to get in touch with his office. Dattaraj Salgaocar in an email response to our queries said: "I have no comments to offer as the matter is sub judice."
The crux of the dispute is the memorandum of understanding by the two groups reached in October 2009. This proposal divided the family businesses and business assets and properties into the mining business and hotel business referred in the petition as 'business baskets'.
The MoU also provided for the segregation and division of the family businesses, the estate and the two family residential properties, and the steps needed to be taken to implement the division. The petition said that several resolutions were later passed by Salgaocar group companies to facilitate the settlement.
"Both the families were almost reaching a settlement but then we don't know what happened," said a person involved in the case, and declined to give more details citing it family's internal matter. "We are hoping to get it settled very soon."
Dattaraj is married to Dipti, the sister of Mukesh and Anil Ambani. Officials from both the Reliance groups appeared to have helped in the original agreement.
Shivanand's petition says that the division of assets was initially a smooth affair. "With professional advice of Atul Dayal, Gautam Doshi and tax and financial advisors KPMG, Dattaraj Salgaocar for himself and on behalf of his group consciously chose and elected to take the hotel business basket."
A written communication (letter of election) dated December 11, 2009, of the binding acceptance of the hotel basket and signed by Dattaraj Salgaocar was sent to the Shivanand faction.
Goa mining stakeholders want early resumption of operations
Panaji: The drafting of a new mining policy, which is mandatory to resume iron ore extraction and exports from Goa, should be expedited so that the key industry gets back on its feet, according to stake-holders.
Chief Minister Manohar Parrikar had earlier said the policy would be drafted by June-end but the stakeholders feel the government should fast-track the process so that the mining industry, which has been reeling under a Supreme Court ban for last two years, can resume operations.
The ban, which has been now lifted, and halt in mining operations had resulted in loss of jobs and revenue to both companies and the state exchequer, they said.
"Everybody dependent on the mining industry hopes the activity resumes immediately. It's up to the state government to make it happen. I don't understand why the Chief Minister is delaying the process (of policy formulation)," Suhas Naik, Convenor, Goa Mining People's Front, told reporters.
The front is a body representing people affected by suspension of mining activity in Goa. The mining industry has been facing allegations of rampant illegalities, leading to the ban in 2012.
The ban was lifted in April by the apex court, which gave powers to the state government to regulate the industry.
The SC order had also declared the exports since last five years as illegal and cancelled mining leases which were not renewed after 2007, rendering them as state property.
Post the ruling, Parrikar had said his Government will come out with a new policy for the sector.
"Parrikar used to say let (Narendra) Modi come to power at the Centre, I will resume the mining immediately. Now Modi is in the Centre. What stops Parrikar from fulfilling his promise?" Naik said.
He pointed out that mining in Karnataka, Chhattisgarh and Odisha has restarted, while Goa is still lagging behind.
Goa Mineral Ore Exporters Association (GMOEA), too, has called for immediate resumption of mining activity. "Our expectation is that the mining should restart as early as possible," GMOEA Chief Executive Officer S Sridhar said.
The mine owners are reluctant to come on record, but said they are ready to cooperate with the government on the issue.
Parrikar has said he is waiting to visit New Delhi and meet the Union Minister concerned as part of mining policy formulation process.
GOA PLANNING TO START
MINING FROM OCT: PARRIKAR
APRIL 25, 2014
Post Supreme Court partially lifting iron ore mining ban in the state, the Goa government expects the mineral extraction to start from October and reach 20 million tonnes per annum level in the next 12 months.
"Even reaching 20 million tonnes is not so easy immediately. So, it will take one year to reach the target, though we are planning to start by October or November," Goa Chief Minister Manohar Parrikar told reporters in Hyderabad.
The Supreme Court earlier this week had lifted its 18-month-old ban on all mining activities in Goa by allowing annual excavation of up to 20 million tonnes of iron ore.
The apex court passed a slew of directions for the Ministry of Environment and Forest (MoEF) and the Goa government for strictly regulating mining activities in the state till the expert panel, set up by it, submits its final report.
The Chief Minister said mining which contributes as much as 25 per cent to the state economy had been impacted negatively by the ban.
"It (the partial lifting of ban) is going to benefit the state a lot. But the first target is to take care of the people, who were rendered unemployed, whose businesses have been affected by the earlier ban," he said replying to a query on the impact of the earlier ban.
He said the state mining policy will be ready in a couple of months and it will have a clear-cut policy framework as far as mining is concerned.
"Maybe in a couple of months we should be ready with the policy. There will be a clear-cut policy frame work. At the national level also we require a transparent policy framework under which everyone will get the benefit," he added.
To a query, he said the government has no intention of taking up mining as demanded by some pressure groups.
GOA MINING POLICY TO
REGULARISE "ILLEGAL" ORES: CM
15th July 2014
PANAJI: Goa's soon to be announced state mining policy would device means to regularise iron ore mined during 2007-2012, which was termed "illegal" by a recent Supreme Court judgement.
"Those who mined the minerals during 2007-2012 didn't know that it was illegal to do so. It was decided that it is illegal in the year 2014 (by the SC judgement)," Goa Chief Minister Manohar Parrikar told reporters here today.
He said that the mining policy would work out a solution to give an opportunity to mine owners to regularise their irregular ore.
"People should be given an opportunity to turn their irregularity into regularity. The mining police would be a solution," the Goa chief minister said, without specifying how exactly the policy would be framed.
Parrikar said that although the ore exported during 2007-2012 is estimated to be Rs 300000.000 Millions, the recovery of money would have to be calculated based on profits earned by mine owners and not on the value of ore mined.
He said that the answer on how the money would be recovered would be specified in the mining policy.
The Goa chief minister also ruled out forming a corporation to run mining leases in the state. He said that running a mine and exports is a "logistics nightmare".
"A few people want us to set up a corporation. It is very easy for them to say so, but it is a logistics nightmare and only corporates with experience in the area can do it," he said.
GOA GOVERNMENT STARTS
PROCESS TO OFFSET RS 10000.000 MILLIONS LOANS
Jun 28, 2014
The Goa government on June 28 began an exercise to offset loans of the people dependent on mining activity, whose borrowings worth Rs 10000.000 Millions are fearing to get into a bad debt. State's Chief minister Manohar Parrikar on June 28 held a meeting with financial institutions, including cooperative banks, nationalised banks and urban credit banks, to take an overview of the loan amount pending with them. It can be noted that the iron ore extraction has stopped in the state since September 2012.
"The total borrowing, including interest, is of Rs 10000.000 Millions. The financial institutions have been asked to revert to the government after reworking on the figures. "They (banks) have been asked to inform about the exact amount, they are ready to waive off," Parrikar, told reporters after the meeting. BJP MLAs - Nilesh Cabral, Subhash Faldesai and Pramod Sawant -- representing the constituencies in the mining belt, also attended the meeting. The Chief Minister said that the government can step in to help people, by paying off some of the loan amount, if banks provide one time settlement (OTS) for them. "For those who can't pay the money under OTS, their liabilities can be shifted to another institution, which will offer them the soft loan to pay off the main amount to the bank. Institutions will be given guarantee of repayment by the state government, Parrikar said, adding the government is in the process of finalising a proper scheme to set off the serious loan issue, which will be settled by September this year.
He said a financial scheme could be only chalked out, when the government knows the exact amount of loan liabilities with various banks. According to sources, Rs 4500.000 Millions is exposure of the nationalised banks, followed by Rs 3500.000 Millions of cooperative banks and Rs 3000.000 Millions of the financial institutions. He also hinted that the state government would make financial provision to assist the people during the upcoming state legislative assembly's budget session. "Mining policy is being framed, mandatory for restarting of this economic activity. The policy will be ready by third week of July," he said, adding the mines department is in the process of framing it.
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.60.85 |
|
|
1 |
Rs.102.68 |
|
Euro |
1 |
Rs.81.46 |
INFORMATION DETAILS
|
Information
Gathered by : |
NYA |
|
|
|
|
Analysis Done by
: |
SUB |
|
|
|
|
Report Prepared
by : |
NTH |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
6 |
|
--CREDIT LINES |
1~10 |
5 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
NO |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
DEFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
53 |
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.