MIRA
INFORM REPORT
|
Report Date : |
28.02.2014 |
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., |
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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 (26) |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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|
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 and delayed |
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Litigation : |
Clear |
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Comments : |
Subject is a part of “Essar Group”. It is a well-established and reputed company having a moderate track
record. The company has incurred a huge loss from its operations due to which
the position of reserves has been heavily deteriorated during 2013. However, the rating takes into consideration the improvement in the
liquidity position as a result of which the management has gradually improve
its financial exercise. Trade relations are fair. Business is active. Payment terms are
reported as slow and delayed. In view of support from its strong and reputed 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 |
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Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
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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
The worst is over for India’s economy with gross domestic product likely
to expand 5 %to 5.5 % this year and more than 6 % in 2015, according to Moody’s
Analytics. Concerns over the rupee and current account deficit are under
control, said the agency. Ratings firm Crisil has forecast 6 % growth for
2014/15 up from the estimated 4.8 % for 2013/14. Total economic growth,
infrastructure bottlenecks and lack of transparency and consistency in foreign
direct investment policies seem to have taken a toll on India’s attractiveness
as an investment destination, says an Ernst & Young survey. Projects
with FDI component fell 16.4 % across the globe in 2012 from the previous
year. The drop in India was steeper at 21 %. State run carrier Air India
is doling out free tickets to its 24000 employees, even as it expects to incur
a loss of Rs 39000 mn this financial year and has a debt of Rs 350000 mn.
550000 number of jobs generated across India in 2013, a fall of 0.4 % as
compared to with a year earlier. The National Capital Region has a
one-fourth share in total jobs created, according to a study by industry lobby
group Assochem, Banks, real estate, automobile and telecommunications sectors
are showing a rise of job creation. $ 805 mn investments by venture capital
firms in India during 2013, registering a drop of about 18 % over the previous
year. The Information Technology and IT-Enabled Services Industry retained
its status as the favourable venture capital investors in 2013. Pakistan has
temporarily banned gold imports for the second time in six months, as it tries
to stem smuggling into India. India’s import duty on gold is 10 % and curbs on
purchases have dried up legal imports into what used to be the world’s biggest
bullion buyers. The World Gold Council puts the amount smuggled into India at
upto 200 tonnes in 2013. The Reserve Bank of India has proposed that unclaimed
bank deposits estimated to be about Rs 35000 mn be used for education and
awareness among depositors. According to the plan, deposits that have not
been claimed for at least 10 years will be transferred to the scheme.
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 |
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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 |
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Designation : |
Director (upto 29.05.2013) |
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Name : |
K. V. Krishnamurthy |
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Designation : |
Director (upto 14.11.2012) |
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Name : |
Jitender Balakrishnan |
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Designation : |
Director (upto 29.05.2013) |
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Name : |
Rana Som |
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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 |
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Designation : |
Managing
Director and CEO |
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|
Name : |
Amit Agarwal |
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Designation : |
Director
(Finance) (upto 08.11.2012) |
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|
Name : |
Alok Gupta |
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Designation : |
Director
(Marketing) |
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Name : |
Ashutosh Agarwala |
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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
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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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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) |
|
|
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|
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 |
|
|
|
|
|
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
ARTICLE:
ESSAR STEEL LAUNCHES SPECIALISED COLOR- COATED PRODUCTS IN KERALA
August 14, 2013
Kochi:
Essar Steel, one of India’s largest integrated steel producers, today
announced the launch of high quality, color-coated products, specially developed
for the Kerala market. These specialized steel products will largely be used in
the housing and industrial resorts segment in the region. The products include
roofing and wood-finished steel Products.
These color-coated products are created to withstand the extreme weather
conditions in Kerala through single-skin roofing and double-skin sandwich
panels for mobile shelters and dwelling units. These are extremely durable and
resistant to high corrosion, peeling and flaking. Easy to install and maintenance-free,
these color-coated products offer superior aesthetics to the structure. Besides
being thermally efficient, the lightweight products are structurally strong and
have the ability to resist extremely strong winds. Stringent quality control
tests have ensured performance under all-weather conditions.
Commenting on the launch of the product, Mr. Dilip Oommen, Managing Director
and CEO, Essar Steel India, said, “Essar Steel is continually
innovating to meet the emerging needs of its customers. The launch of
color-coated products in Kerala is a step in that direction. Essar Steel’s
color-coated products ideally suit local conditions.”
Mr. R V Sridhar, Business Head, Downstream and Automobile, Essar Steel India,
said, “Kerala is an important market for our products. The market size of
Kerala is about 100,000 tonnes per annum and is growing at 15%. We are
confident with the quality of products and with the launch of these products;
we are targeting a market Share of about 25%
Mr. Mitesh Shah, CEO, Pune facility, added, “The state-of-the-art,
color-coated facility of Essar Steel has been designed to manufacture world
class, color-coated products that match international standards. The plant has
an annual production capacity of 400,000 tonnes. The company’s products has
found acceptance in quality conscious European, Middle East and African
markets.”
Tested for its superior quality, these products are manufactured with a
high-precision pre-painting process, adhering to stringent JIS, ASTM, ECCA, SNI
and EN standards. They amalgamate many desirable qualities like strength,
enhanced corrosion resistance, aesthetic appeal and promise longer life to the
product.
These products are currently
available in a variety of shades and patterns. There are more than 4,800 shades
ranging from RMP, SMP, PVDF, Wrinkle, Wood Finish and ARS. The products find
varied application in the construction and infrastructure industry, white goods
and automotive industry depending on the life cycle and environment. Currently,
these products are being largely exported to Europe, Russia and African
countries.
In order to ensure consistent supply of the product, the company has
streamlined its distribution network and enhanced its supply chain management
in the region. The company has also appointed distributors to ensure the
availability of the product.
ESSAR STEEL TO RAISE US$2 BILLION THROUGH PRE-EXPORT FINANCING
August 01, 2013
Mumbai:
Essar Steel is proposing to raise US$2 billion through pre-export
finance and the proceeds will be utilised for pre-payment of existing rupee
debt, for which the company has received necessary approvals. This is in
continuation of Essar Steel’s strategy to dollarize the balance sheet.
The company had earlier raised US$1 billion through External Commercial
Borrowing (ECB) route that has resulted in an annual saving of Rs 4500.000
millions.
The move to raise US$2 billion will help de-risk the company’s balance
sheet as the revenues of Essar Steel are dollar denominated or dollar linked
and hence provides as a natural hedge for dollar debt.
Essar Steel is in a unique position to benefit from the changes in the
rupee–dollar exchange rate. The expansion of the facilities at Hazira was
undertaken when the Indian Rupee was trading at Rs 40 to a dollar and now with
the exchange rate near Rs 60 to a dollar, the company will save significantly
by dollarising the balance sheet at the current exchange rate.
With this financing, the company would have dollarised US$3 billion of
its debt, which will lead to significant benefits. These include reduction of
average interest cost from rupee linked rate to average interest rate of 8.5%,
which will result in a large interest saving of approximately Rs.
13000.00-15000.000 million annually. Further the company will elongate the
average maturity of its debt from 3.5 to 6.5 years.
Commenting on this development, Mr. Ashutosh Agarwala, CFO and Director
(Finance), Essar Steel India, said, “We are continuing with our strategy to
dollarise our balance sheet, bring down interest cost and elongate maturity of
our debt in line with our peers."
Essar steel has invested Rs 370.000 millions for setting up a 10 million
steel plant at Hazira, Gujarat. Once the entire Odisha pellet complex is
commissioned fully, which is expected very soon, it will make Essar Steel one
of the lowest costs integrated steel facilities in the country.
NEWS:
ESSAR STEEL RAISES $1 BN OVERSEAS TO LOWER RUPEE DEBT
Essar Steel has raised $1 billion through external commercial borrowings (ECB)
to part-retire its rupee-denominate debt. The move will help the Ruias-owned
firm to de-risk balance sheet from fluctuating currency rates and save about Rs
4500.000 Millions per annum on interest outgo.
"As a result of the dollarising its rupee debt, Essar Steel will
also save approximately Rs 4500.000 Millions per annum in interest. The company
will also gain significantly in terms of additional liquidity and substantial
savings in interest cost," the steel maker said in a statement.
Essar Steel, which has a total of 14 million tonnes per annum (mtpa)
installed steel-making capacity in India and overseas, generates a good part of
revenue through exports.
The domestic price of the alloy is also largely determined by the landed
cost of imported alloy.
The dollar debt, priced at a competitive LIBOR-linked rate, has an
average maturity of seven years. Essar Steel reportedly has $4 billion debt on
its book.
A substantial part of Essar Steel's debt is rupee-denominated as against
the average 30-40 per cent of the domestic peers.
"Consequently, average maturity of debt of the company has also nearly
doubled. The earnings, being dollar linked, would serve as a natural hedge to
reduce the risks associated with currency fluctuations," it said, adding large
lenders like ICICI Bank and IDBI subscribed the ECBs.
"Steel industry globally is going through a phase of weak demand
resulting in lower realisations. It is imperative that the debt of the company
is aligned to the earning currency thereby reducing volatility in
earnings," said company CEO Ashutosh Agarwala. "The dollarisation of
rupee debt would not only de-risk our balance sheet but also elongate maturity
and reduce interest costs."
ESSAR STEEL FRONT-RUNNER IN RACE FOR STEMCOR INDIA’S ASSETS
In a meeting held last week in
Though it could not be immediately ascertained what
Ruia had communicated to Stemcor, the source said the British trading firm in
the meantime has initiated the process of auctioning the assets which include
an iron ore mine and a pellet plant, both located in Odisha.
Essar Steel has the brightest chance of winning the
assets as Stemcor management has been continuously favouring Ruias-led firm
based on their mutual understanding and faith accruing from a long-time
association, the source added.
Stemcor had its first joint venture in India with
Essar Steel and jointly, these two firms set up a 3 million tonnes per annum
(mtpa) pellet plant at Vizag in Gujarat back in 2001 though Stemcor, later in
2003, sold its stake to Essar Steel.
However, when contacted an Essar Steel spokesperson
said: "We keep looking at growth opportunities. However, it is not our
policy to comment on any specific proposal."
The assets would help Essar Steel to further
consolidate its raw material needs and help the company to hedge itself from
the frequent price fluctuations of iron ore.
Meanwhile, almost all Indian steel makers,
including Tata Steel, JSW Steel, JSPL, Electrosteel Castings, Adhunik Metaliks,
have evinced interest to buy out Stemcor India's assets. Aditya Birla
Group's Essel Mining and Industries and Anil Agarwal's Vedanta are also in the
race along with Brazilian miner Vale.
Stemcor has asked all of them to place their
initial bids and may allow them to carry out due diligence before putting their
final bids. Auction is 6-8 weeks away, the source said.
Earlier in the day, JSPL's Chairman Naveen Jindal
said that his company would be "keen" to buy the assets provided
those come at an "attractive price".
Stemcor has majority stake in Aryan Mining and
Trading Corporation (AMTC), which has 100 MT of iron ore reserves with the
licence to mine three mtpa. It also has 10 per cent stake in Mideast Integrated
Steel (MISL) in Odisha. MISL has an iron ore mine with a current output of four
mtpa.
Stemcor has a subsidiary, Brahmani River Pellets
Ltd (BRPL), which has a four mtpa beneficiation plant at Barbil, Odisha, and a
pellet plant complex at Jajpur, connected by a 220 km underground slurry
pipeline.
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 TO BRING DOWN RS 220000.000 MILLIONS DEBT
After
spending a massive Rs 375000.000 millions in expanding capacities across its
units in
The
company is now looking at raising debt outside of India. Till recently it had
considered listing itself on the London Stock Exchange (LSE). Essar Energy, another group company, is already listed on the
LSE. Talking about accessing the debt or a possible listing, Amit Agarwal, CFO, Essar Steel, said: “As a company, one would
always look at the opportunities that are good for us. We keep on talking,
understanding whether there is an opportunity that exists.” He, however,
categorically denied listing plans for the company and said, “The debt markets
are better than the equity markets currently”.
Given
the cheaper options in the debt market to raise money, Essar Steel is looking
more inclined towards this possibility. Agarwal said, “RBI has also allowed
companies to borrow in foreign currency and reduce the borrowing costs. We are
also evaluating such opportunities. As a large, company we will evaluate all
options.”
In
an internal exercise, Essar Steel got itself valued from an independent bank
recently which pegged it at $9 billion, or Rs. 495000.000 millions
Essar
Steel was listed on the Indian stock markets till 2007 when the promoters
decided to take the company private. Investment banking sources say that till
six months ago the company was looking at the London market for listing before
it turned to debt markets, given the global equity markets’ scenario and
subdued valuations.
The
company has a 10-million-tonne steel plant in Hazira and beneficiation and
pellet plants on the east coast of India. The total debt on its books is Rs
220000.000 millions. JSW Steel, which recently announced the merger of JSW
Ispat Steel with self, will have a total debt of Rs 252000.000 million after
the merger. Currently at 10 million tonnes, the debt of JSW’s books is Rs
166000.000 millions. Essar has spent Rs 375000.000 millions in its expansion at its flagship Hazira
Complex in Gujarat and for the pellet and beneficiation plants on the east
coast of India. Taking into accounts its operations in the US and Canada, its
total steelmaking capacity stands at 14 million tonnes.
Essar
Steel made a loss of Rs 12510.000 millions in 2011-12. Because of the rapid
expansion, the interest costs on the loans have been weighing heavy on the
company. In FY12 alone, the interest costs were up 68 per cent, at Rs 22350.000
millions, when the company registered sales of Rs 160560.000 millions.
ESSAR STEEL’S STATEMENT ON RAILWAY
FREIGHT ISSUE
September
18, 2013
Essar Steel has
enjoyed a cordial, healthy and unblemished working relationship with the
Railways for more than two decades. The current issue is not part of any scam.
Essar Steel suo-moto informed the Railways
of its plan to export pellets, before the actual exports shipment, in its
letter dated 13th August, 2013. This was necessitated due to the weak economic
and steel market condition in the country. There was no malafide intention to
short pay the Railways. In response to our letter seeking guidance, the
Railways vide their letter 26th August, 2013 suspended movement of Iron Ore
Fines to our units affecting our production adversely.
Subsequent discussions with the Railways and
in line with their Rules and Regulations, Essar Steel, as a responsible
Corporate Citizen, has agreed to pay the additional claim of the Railways, so
that production can be resumed to normal levels as soon as possible. Essar
Steel clarifies that out of the total production of 1.9 Mn Tonnes, since
commissioning of the Paradeep Pellet plant in February 2012, only 100,000
Tonnes have been exported so far , in the latter half of August.(0.5%!)
Essar Steel believes that its responsible
and transparent actions need to be acknowledged in a positive way. The
insinuation on our corporate behavior is unjust and uncalled for, affecting our
brand image and reputation
FIRDOSE A. VANDREVALA APPOINTED THE EXECUTIVE VICE CHAIRMAN OF ESSAR
STEEL INDIA LIMITED
August 07, 2013
Mumbai:
Essar Steel India Ltd today announced the appointment of Mr.Firdose A. Vandrevala
as Executive Vice Chairman effective August 12, 2013.
Mr. Vandrevala joins Essar Steel from HIRCO, a construction and real
estate major, where he was the Chairman and Managing Director.
He holds a B. Tech Honors degree from the Indian Institute of
Technology, Kharagpur and is a Post Graduate Diploma in Business Management
from the XLRI, Jamshedpur.
A recognized leader, Mr. Vandrevala was associated with the Tata Group
for over three decades, where he held various leadership positions, the last
being Managing Director of Tata Power and Chairman of Tata Teleservices. He was
the Deputy Managing Director of Tata Steel before moving to Tata Power. He
played a significant role in the growth of Tata Steel. From Tata Group, he
joined Motorola India as the Chairman.
Chairman of Essar, Mr. Shashi Ruia said: “We are delighted to have
Firdose join us. Essar Steel is committed to be a leader in the economic
development of this nation. We look forward to Firdose’s contribution in making
India self – sufficient in the steel sector and contribute further to the
country’s progress.”
Commenting on his joining Essar Steel, Mr. Vandrevala said: "Essar
Steel has set up some of the finest facilities and its scale and size is
something any professional will want to associate with. As the expanded
capacity of 10 million tonnes comes online, I am looking forward to Essar Steel
playing a leading role in this sector and contributing to India’s economic
development and growth."
Essar Steel has invested Rs.375000.000 millions in creating world-class
steel business with a capacity of 10 MT and has a presence along the complete
value chain of the steel industry.
The facilities of Essar SteeI in Hazira include a 10 million tonnes
Fully Integrated Steel Plant, a 1.75 million tonnes downstream unit, India’s
widest Plate Mill with an annual capacity of 1.5 million tonnes and a Pipe Mill
of 0.6 million tonnes, a downstream facility at Pune comprising Pickling, Cold
rolling, Galvanising and Color Coating facilities, Steel Processing facilities
at seven locations with a capacity of 4 million tonnes and Pellet making
facilities backed by Iron Ore Beneficiation facilities at Vizag and Paradeep
with an aggregate capacity of 20 million tonnes.
Having created such large facilities, Essar Steel is now consolidating
its operations to create value for all its stakeholders. While the facilities
are operated by professionals with relevant experience, the strong Board and
Management can add value by providing strategic direction and operational
excellence to the company.
ESSAR STEEL INITIATIVE IN SUSTAINABLE DEVELOPMENT
Mumbai:
In its bid to become a 'zero waste company', Essar Steel India has
signed an agreement with Harsco India Pvt Limited, for management of steel slag
from EAF and Conarc furnaces. Harsco is a well-known and established global
market leader in slag processing and metal recovery business.
The agreement is for a period of 15 years valued at US$160 million over
the duration of the contract. As per the agreement, Harsco will recover iron
from the slag, which can then be reused in steel making. Harsco is a globally
renowned company in slag management. After the metal is recovered, the sized
slag finds varied applications in construction industry like in making paver
blocks, road back fill, road laying, brick making and cement mix construction,
among other usages.
Commenting on the agreement, Mr Rajiv Bhatnagar, Director, Hazira
Facility of Essar Steel India, said, "This agreement is in line with the
objective of Essar Steel to become a 'zero waste company'. We remain committed
to the cause of sustainable development."
Essar Steel has already developed technology to convert the slag into
paver blocks, which is not only cheaper than cement paver blocks but also
stronger and heavier as compared to cement paver blocks. Essar Steel generates
a million ton of slag annually, based of which ancillary units can be set up,
for use of this slag to make aggregates.
This agreement is part of Essar Steel's sustainability efforts. Essar
Steel is a signatory to World Steel Association's Sustainable Development
Charter. Essar Steel has taken various steps to become a 'zero waste company'
and ensure sustainable development. It includes recycle of blast furnace and
Corex gas in sponge iron plant, recycling of water reduction in water usage,
rain water harvesting, slurry pipe line for transportation of iron ore fines to
pellet plant, to name a few.
Essar Steel is a recipient of many awards in sustainability including
recognition from reputed institutions like Centre for Science and Environment,
Water Digest, World Steel Association, Golden Peacock, Green Tech Foundation,
CII, CII-ITC Sustainable Development Center, Carbon Disclosure Project to name
a few.
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.61.94 |
|
|
1 |
Rs.103.31 |
|
Euro |
1 |
Rs.85.11 |
INFORMATION DETAILS
|
Information
Gathered by : |
HNA |
|
|
|
|
Report Prepared
by : |
NKT |
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 |
2 |
|
--LIQUIDITY |
1~10 |
2 |
|
--LEVERAGE |
1~10 |
3 |
|
--RESERVES |
1~10 |
2 |
|
--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 |
|
26 |
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.