MIRA
INFORM REPORT
|
Report Date : |
20.01.2014 |
IDENTIFICATION DETAILS
|
Name : |
GODAWARI POWER AND ISPAT LIMITED |
|
|
|
|
Formerly Known
As : |
ISPAT GODAWARI LIMITED |
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|
|
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Registered
Office : |
Plot No. 428/2, Phase-1, Industrial Area, Siltara, Raipur
– 493111, Chhattisgarh |
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|
|
Country : |
India |
|
|
|
|
Financials (as
on) : |
31.03.2013 |
|
|
|
|
Date of
Incorporation : |
21.09.1999 |
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|
|
|
Com. Reg. No.: |
013756 |
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|
|
|
Capital
Investment / Paid-up Capital : |
Rs.327.562
Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L27106CT1999PLC013756 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
JBPI00086C |
|
|
|
|
PAN No.: [Permanent Account No.] |
AAACI7189K |
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|
|
Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchanges. |
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|
Line of Business
: |
Subject is mainly engaged in Generation of Electricity, Iron Ore
Mining and Manufacturing of Iron Ore Pellets, Sponge Iron, steel Billets,
Wire Rods, H.B. Wire and Ferro Alloys. |
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|
|
|
No. of Employees
: |
500 [Approximately] |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (54) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD 28662000 |
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|
|
|
Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a part of Hira Group. It is a well-established company
having fine track record. Financial position of the company appears to be
sound. Directors are reported to be experienced and respectable businessmen. Trade relation are reported as fair. Business is active. Payments are
reported to be regular and as per commitments. The company can be considered for normal business dealings at usual
trade terms and conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – March 31st, 2013
|
Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
|
India |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very
High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
INDIAN ECONOMIC OVERVIEW
India’s current
account deficit narrowed in the quarter ended September as government measures
to curb imports, especially gold, kicked in. The current account deficit,
the excess of a country’s imports of goods and services over exports, narrowed
to $ 5.2 billion from $ 21 billion in the year ago period, according to
provisional Reserve Bank of India data. Finance Minister P. Chidambaram said
the CAD for the year will be less than $ 60 billion or 3 per cent of GDP and
the latest data suggests the government may achieve the target.
India was ranked 94th
among the world’s most corrupt nations list. Denmark and New Zealand topped as
the cleanest while Somalia emerged as the most corrupt.
India’s services
sector activity witnessed a moderate improvement in November over the previous
month, even while indicating the fifth successive monthly contraction,
according the HSBC survey.
$53 million
estimated losses suffered by India due to phishing attacks during the third
quarter, according to a study by RSA. India ranks fourth in the list of nations
hit by phishing attacks. The US remained at the top of the charts. Phishing is
the process of acquiring information such as user names, passwords and credit
card details by sending e-mails disguised as official mails.
Rs.4080 million
worth of mobile-phone-based transactions by July 2013 compared to Rs.260
million in September, 2012, according to Deloitte report. The number of
transactions has shot up from 94000 to 701000.
India aims to earn
Rs.400000 million from the bandwidth auction set for January. The merger and
acquisition guidelines, cleared by a group of ministers, will be out before the
auction begins so that players can make informed decisions on the auctions.
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CARE |
|
Rating |
A [Long Term Bank Facilities] |
|
Rating Explanation |
Adequate degree of safety and low credit risk. |
|
Date |
13.09.2013 |
|
Rating Agency Name |
CARE |
|
Rating |
A1 [Short Term Bank Facilities] |
|
Rating Explanation |
Very strong degree of safety and lowest credit risk. |
|
Date |
13.09.2013 |
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 PARTED BY
|
Name : |
Mr. C.P. Sahu |
|
Designation : |
Finance Department |
|
Contact No.: |
91-771-4082273 |
|
Date : |
17.01.2014 |
LOCATIONS
|
Registered Office/ Factory : |
Plot No. 428/2, Phase-1, Industrial Area, Siltara, Raipur
– 493111, Chhattisgarh, India |
|
Tel. No.: |
91-771-4082333/ 4082235 |
|
Fax No.: |
91-771-4082234 |
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E-Mail : |
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|
Website : |
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Location: |
Owned |
|
|
|
|
Corporate Office : |
Hira Arcade, First Floor, New Bus Stand, Pandri, Raipur -
492001, Chhattisgarh, India |
|
Tel. No.: |
91-771-4082000/ 4082001 |
|
Fax No.: |
91-771-4057601 |
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E-Mail : |
|
|
|
|
|
Mumbai Office : |
Unit No.606, Town Centre, 6th Floor, Andheri Kurla Road, Andheri, Saki
Naka, Near Mittal Estate, Mumbai - 400059, Maharashtra, India |
|
Tel. No.: |
91-22-28592621/ 28592622/ 28592623 |
|
Fax No.: |
91-22-28592851 |
|
E-Mail : |
DIRECTORS
AS ON 31.03.2013
|
Name : |
Mr. B. Choudhuri |
|
Designation : |
Chairman (Independent Director) |
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|
|
|
Name : |
Mr. B.L. Agrawal |
|
Designation : |
Managing Director |
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|
Name : |
Mr. Abhishek Agrawal |
|
Designation : |
Executive Director |
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|
|
|
Name : |
Mr. Dinesh Agrawal |
|
Designation : |
Non-Executive Director |
|
Date of Birth/Age : |
41 years |
|
Qualification : |
B.E. (Electrical) |
|
Date of Appointment : |
21.09.1999 |
|
|
|
|
Name : |
Mr. Dinesh Gandhi |
|
Designation : |
Executive Director- Finance |
|
Date of Birth/Age : |
48 Years |
|
Qualification : |
Chartered Accountant and Company Secretary |
|
Date of Appointment : |
25.02.2005 |
|
|
|
|
Name : |
Mr. Vinod Pillai |
|
Designation : |
Executive Director |
|
|
|
|
Name : |
Mr. Shashi Kumar |
|
Designation : |
Independent Director |
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|
|
|
Name : |
Mr. B. N. Ojha |
|
Designation : |
Independent Director |
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|
|
|
Name : |
Mr. Harishankar Khandelwal |
|
Designation : |
Independent Director |
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|
|
|
Name : |
Mr. Siddharth Agrawal |
|
Designation : |
Non-Executive Director (Upto 09.11.2011) |
KEY EXECUTIVES
|
Name : |
Mr. Y.C. Rao |
|
Designation : |
Compliance Officer and Company Secretary |
|
|
|
|
Name : |
Mr. C.P. Sahu |
|
Designation : |
Finance Department |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 31.12.2013
|
Category of Shareholder |
Total No. of Shares |
Total Shareholding as a % of Total No. of Shares |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
17925684 |
54.72 |
|
|
2205169 |
6.73 |
|
|
1125000 |
3.43 |
|
|
1125000 |
3.43 |
|
|
21255853 |
64.89 |
|
|
|
|
|
Total shareholding of Promoter and Promoter Group (A) |
21255853 |
64.89 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
1911218 |
5.83 |
|
|
213590 |
0.65 |
|
|
23629 |
0.07 |
|
|
2148437 |
6.56 |
|
|
|
|
|
|
1711443 |
5.22 |
|
|
|
|
|
|
4923573 |
15.03 |
|
|
2346861 |
7.16 |
|
|
370080 |
1.13 |
|
|
129962 |
0.40 |
|
|
214229 |
0.65 |
|
|
100 |
0.00 |
|
|
25789 |
0.08 |
|
|
9351957 |
28.55 |
|
Total Public shareholding (B) |
11500394 |
35.11 |
|
Total (A)+(B) |
32756247 |
100.00 |
|
(C) Shares held by Custodians and against which Depository Receipts
have been issued |
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
Total (A)+(B)+(C) |
32756247 |
0.00 |
BUSINESS DETAILS
|
Line of Business : |
Subject is mainly engaged in Generation of Electricity, Iron Ore
Mining and Manufacturing of Iron Ore Pellets, Sponge Iron, steel Billets,
Wire Rods, H.B. Wire and Ferro Alloys. |
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Products : |
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Exports : |
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Products : |
Finished Goods |
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Countries : |
·
China ·
South Africa |
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Imports : |
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Products : |
Raw Materials |
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Countries : |
China |
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Terms : |
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Selling : |
LC and Credit |
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Purchasing : |
LC and Credit |
PRODUCTION STATUS [AS ON 31.03.2013]
|
Products/
Division |
Actual
Production (In MT) |
|
Iron ore mining |
693612 |
|
Iron ore pellets |
619620 |
|
Sponge iron |
293887 |
|
Steel billets |
185021 |
|
MS rounds |
82988 |
|
HB wire |
94668 |
|
Ferro alloys |
9434 |
|
Power (Units in crore) |
40.50 |
GENERAL INFORMATION
|
Customers : |
End Users |
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No. of Employees : |
500 [Approximately] |
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Bankers : |
· Axis Bank Limited, Jeevan Beema Marg, Pandri, Raipur - 492001, Chhattisgarh, India Tel No.:
91-771-2445501 ·
Bank of Baroda, Corporate Financial Services
Branch, 4th Floor, 10/12, Mumbai Samachar Marg, Fort, Mumbai - 400001,
Maharashtra, India ·
Canara Bank, Prime Corporate Branch-II, Verma
Chambers, 2nd Floor, Homji Street, Fort, Mumbai - 400001, Maharashtra, India ·
IDBI Bank Limited ·
Oriental Bank of Commerce, Main Branch, Raj
Tower, Tatyapara, G. E. Road, Raipur - 492001, Chhattisgarh, India ·
State Bank of India, Commercial Branch, 2nd
Floor, Pujari Chambers, Pachpedi Naka, Raipur - 492001, Chhattisgarh, India ·
Vijaya Bank, Industrial Finance Branch, 2nd
Floor, New Excelsior Building, Wallace Street, Fort, Mumbai - 400001,
Maharashtra, India ·
Yes Bank Limited, 9th Floor, Nehru Centre,
Discovery of India, Dr. Annie Besant Road, Worli, Mumbai - 400018,
Maharashtra, India ·
ICICI Bank Limited, Regional Office, ICICI
Tower, NBCC Palace, Bhishmpitamah Marg, Pragati Vihar, New Delhi - 110003,
India ·
Indusind Bank Limited, 2401 Gen Thimmayya
Road, Contonment, Pune - 411001, Maharashtra, India |
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Facilities : |
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Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
O.P. Singhania
and Company Chartered Accountants |
|
Address : |
Raipur,
Chhattisgarh, India |
|
|
|
|
Subsidiaries : |
·
Godawari Green Energy Limited (Wholly owned) ·
Godawari Clinkers and Cement Limited (Wholly
owned) ·
Krishna Global and Mineral Limited (Wholly owned) ·
Godawari Integrated Steel (India) Limited (Wholly
owned) ·
Godawari Energy Limited ·
Ardent Steels Limited ·
Hira Ferro Alloys Limited |
|
|
|
|
Joint Venture : |
·
Raipur Infrastructure Company Limited ·
Chhattisgarh Captive Coal Mining Limited |
|
|
|
|
Other Related Parties : |
·
Hira Cement Limited ·
Raipur Complex |
CAPITAL STRUCTURE
AS ON 31.03.2013
Authorized Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
49800000 |
Equity Shares |
Rs.10/- each |
Rs.498.000 Millions |
|
3200000 |
Preferences Shares |
Rs.10/- each |
Rs.32.000 Millions |
|
|
TOTAL
|
|
Rs.530.000
Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
32756247 |
Equity Shares |
Rs.10/- each
|
Rs.327.562
Millions |
NOTES:
TERMS/RIGHTS ATTACHED TO EQUITY SHARES:
The company has
only one class of equity shares having a par value of Rs.10/- per share. Each
holder of equity shares is entitled to one vote per share. The company declares
and pays dividends in Indian rupees. The dividend proposed by the Board of Directors
is subject to the approval of the shareholders in the ensuing Annual General
Meeting.
During the year
ended 31st March,2013, the amount of per share dividend recognized as
distributions to equity shareholders was Rs.2.50 (31st March,2012 : Rs.2.50) In
the event of liquidation of the company, the holders of the equity shares will
be entitled to receive remaining assets of the company, after distribution of
all preferential amounts. The distribution will be in proportion to the number
of equity shares held by the shareholders.
DETAILS OF
SHAREHOLDERS HOLDING MORE THAN 5% SHARES IN THE COMPANY:
|
PARTICULAR |
AS ON 31.03.2013 |
|
|
|
NO. OF SHARES |
% OF HOLDING IN
THE CLASS |
|
Equity shares of
Rs.10/- each fully paid |
|
|
|
ICICI Prudential Discovery Fund |
1911218 |
5.83 |
|
Hira Infra-Tek Limited |
1790652 |
5.47 |
|
Dinesh Agrawal |
1846347 |
5.64 |
|
B.L. Agrawal |
1731398 |
5.29 |
|
|
7279615 |
22.23 |
MONEY RECEIVED
AGAINST SHARE WARRANTS:
During the year
the company has issued 5,000,000 convertible warrants of Rs.130/- each, which
will be convertible into 5,000,000 equity shares of Rs.10/- each at a premium
of Rs.120/- per share within the 18 months from the date of allotment of
warrants. Accordingly 5,000,000 warrants at a subscription price of Rs.32.50 per
warrant has been allotted on 7th July, 2012 to Hira Infra-Tek Limited (a
promoter group company). Out of 5,000,000 share warrants, the company has
allotted 1,000,000 equity shares of Rs.10/- each at a premium of Rs.120/- per
share on 21st March, 2013 upon exercise of option for conversion of warrants
into equity shares and on receipt of balance 75% amount from the warrant
holders.
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 |
327.562 |
317.562 |
317.562 |
|
(b) Reserves & Surplus |
6708.186 |
5970.874 |
5273.682 |
|
(c) Money received
against share warrants |
130.000 |
0.000 |
0.000 |
|
|
|
|
|
|
(2)
Share Application money pending allotment |
0.000 |
0.000 |
0.000 |
|
Total Shareholders’ Funds (1) + (2) |
7165.748 |
6288.436 |
5591.244 |
|
|
|
|
|
|
(3) Non-Current
Liabilities |
|
|
|
|
(a) long-term
borrowings |
7076.780 |
4107.719 |
3836.154 |
|
(b) Deferred tax liabilities (Net) |
582.638 |
0.000 |
0.000 |
|
(c) Other long
term liabilities |
22.980 |
318.045 |
16.274 |
|
(d) long-term
provisions |
15.599 |
13.807 |
10.954 |
|
Total Non-current
Liabilities (3) |
7697.997 |
4439.571 |
3863.382 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a)
Short term borrowings |
2091.233 |
1710.425 |
1759.262 |
|
(b)
Trade payables |
1825.054 |
975.501 |
557.359 |
|
(c)
Other current liabilities |
1273.807 |
1183.389 |
933.671 |
|
(d) Short-term
provisions |
120.444 |
228.913 |
177.586 |
|
Total Current
Liabilities (4) |
5310.538 |
4098.228 |
3427.878 |
|
|
|
|
|
|
TOTAL |
20174.283 |
14826.235 |
12882.504 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a)
Fixed Assets |
|
|
|
|
(i)
Tangible assets |
6719.205 |
6584.996 |
6836.707 |
|
(ii)
Intangible Assets |
188.081 |
185.550 |
20.717 |
|
(iii)
Capital work-in-progress |
4123.923 |
1359.219 |
368.543 |
|
(iv) Intangible assets under development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current
Investments |
2525.623 |
2123.344 |
2120.927 |
|
(c) Deferred tax
assets (net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
44.905 |
51.431 |
36.039 |
|
(e) Other
Non-current assets |
76.246 |
65.864 |
44.317 |
|
Total Non-Current
Assets |
13677.983 |
10370.404 |
9427.250 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a)
Current investments |
0.000 |
0.000 |
0.000 |
|
(b)
Inventories |
2728.629 |
2622.641 |
2287.289 |
|
(c)
Trade receivables |
1022.506 |
821.420 |
540.253 |
|
(d) Cash
and cash equivalents |
319.926 |
391.366 |
57.199 |
|
(e)
Short-term loans and advances |
2425.239 |
620.375 |
570.484 |
|
(f)
Other current assets |
0.000 |
0.029 |
0.029 |
|
Total
Current Assets |
6496.300 |
4455.831 |
3455.254 |
|
|
|
|
|
|
TOTAL |
20174.283 |
14826.235 |
12882.504 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
19116.332 |
17315.027 |
9348.153 |
|
|
|
Other Income |
97.015 |
30.408 |
29.365 |
|
|
|
TOTAL (A) |
19213.347 |
17345.435 |
9377.518 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of raw material and component consumed |
13065.534 |
12313.986 |
5603.731 |
|
|
|
Purchase of Traded Goods |
73.995 |
126.214 |
103.758 |
|
|
|
Employees benefits expenses |
437.940 |
380.134 |
293.959 |
|
|
|
Other Expenses |
2773.460 |
2446.581 |
1765.314 |
|
|
|
(Increase)/decrease
in inventories of finished goods work-in-progress and traded goods |
356.131 |
(437.563) |
(352.803) |
|
|
|
TOTAL (B) |
16707.060 |
14829.352 |
7413.959 |
|
|
|
|
|
|
|
|
Less |
PROFIT
/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
2506.287 |
2516.083 |
1963.559 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
923.926 |
1007.066 |
602.459 |
|
|
|
|
|
|
|
|
|
|
PROFIT
/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
1582.361 |
1509.017 |
1361.100 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
522.728 |
510.673 |
468.296 |
|
|
|
|
|
|
|
|
|
|
PROFIT / (LOSS)
BEFORE TAX (E-F) (G) |
1059.633 |
998.344 |
892.804 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
(181.738) |
208.882 |
180.148 |
|
|
|
|
|
|
|
|
|
|
PROFIT / (LOSS)
AFTER TAX (G-H) (I) |
1241.371 |
789.462 |
712.656 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
3007.100 |
2666.700 |
2103.000 |
|
|
|
|
|
|
|
|
|
Less |
ADJUSTMENT OF
DEFERRED TAX AS PER TRANSITIONAL PROVISION |
529.300 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
|
Add |
TRANSFER ON
AMALGAMATION |
0.000 |
0.000 |
96.000 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
150.000 |
149.200 |
100.000 |
|
|
|
Proposed Dividend on Equity Shares |
81.900 |
79.400 |
79.400 |
|
|
|
Corporate Dividend Tax |
12.900 |
12.900 |
13.200 |
|
|
|
Transfer to Debenture Redemption Reserve |
306.600 |
207.500 |
52.500 |
|
|
BALANCE CARRIED
TO THE B/S |
3167.771 |
3007.162 |
2666.556 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Sale of VER |
3.216 |
1.084 |
6.719 |
|
|
|
Sale of goods on FOB Value |
25.660 |
30.023 |
0.000 |
|
|
TOTAL EARNINGS |
28.876 |
31.107 |
6.719 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Capital Goods |
1265.057 |
14.400 |
28.958 |
|
|
|
Raw Material and Stores items |
829.167 |
708.282 |
202.808 |
|
|
TOTAL IMPORTS |
2094.224 |
722.682 |
231.766 |
|
|
|
|
|
|
|
|
|
|
Earnings /
(Loss) Per Share (Rs.) |
|
|
|
|
|
|
-
Basic |
39.05 |
24.86 |
22.44 |
|
|
|
-
Diluted |
37.86 |
24.86 |
22.44 |
|
QUARTERLY RESULTS
|
PARTICULARS |
|
30.06.2013 |
30.09.2013 |
|
Type |
|
1st
Quarter |
2nd
Quarter |
|
Net Sales |
|
3806.100 |
3443.800 |
|
Total Expenditure |
|
3333.600 |
3043.600 |
|
PBIDT (Excl OI) |
|
472.500 |
400.200 |
|
Other Income |
|
17.000 |
31.800 |
|
Operating Profit |
|
489.500 |
432.000 |
|
Interest |
|
221.600 |
265.600 |
|
Exceptional Items |
|
0.000 |
0.000 |
|
PBDT |
|
267.900 |
166.400 |
|
Depreciation |
|
132.200 |
153.300 |
|
Profit Before Tax |
|
135.700 |
13.100 |
|
Tax |
|
(47.100) |
02.900 |
|
Provisions and contingencies |
|
0.000 |
0.000 |
|
Profit After Tax |
|
182.800 |
10.200 |
|
Extraordinary Items |
|
0.000 |
0.000 |
|
Net Profit |
|
182.800 |
10.200 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
PAT / Total Income |
(%) |
6.46
|
4.55 |
7.60 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
5.54
|
5.77 |
9.55 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
7.83
|
8.80 |
8.59 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.15
|
0.15 |
0.15 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
1.27
|
0.93 |
1.00 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.22
|
1.09 |
1.00 |
LOCAL AGENCY FURTHER INFORMATION
|
Sr. No. |
Check List by
Info Agents |
Available in
Report (Yes / No) |
|
1] |
Year of Establishment |
Yes |
|
2] |
Locality of the firm |
Yes |
|
3] |
Constitutions of the firm |
Yes |
|
4] |
Premises details |
No |
|
5] |
Type of Business |
Yes |
|
6] |
Line of Business |
Yes |
|
7] |
Promoter's background |
Yes |
|
8] |
No. of employees |
Yes |
|
9] |
Name of person contacted |
Yes |
|
10] |
Designation of contact person |
Yes |
|
11] |
Turnover of firm for last three years |
Yes |
|
12] |
Profitability for last three years |
Yes |
|
13] |
Reasons for variation <> 20% |
-- |
|
14] |
Estimation for coming financial year |
No |
|
15] |
Capital in the business |
Yes |
|
16] |
Details of sister concerns |
Yes |
|
17] |
Major suppliers |
No |
|
18] |
Major customers |
No |
|
19] |
Payments terms |
Yes |
|
20] |
Export / Import details (if applicable) |
Yes |
|
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] |
PAN of Proprietor/Partner/Director, if available |
No |
|
32] |
Date
of Birth of Proprietor/Partner/Director, if available |
Yes |
|
33] |
Voter ID No of Proprietor/Partner/Director, if available |
No |
|
34] |
External Agency Rating, if available |
Yes |
INDEX OF CHARGES:
|
S.
NO. |
CHARGE
ID |
DATE
OF CHARGE CREATION/MODIFICATION |
CHARGE
AMOUNT SECURED |
CHARGE
HOLDER |
ADDRESS |
SERVICE
REQUEST NUMBER (SRN) |
|
1 |
10469769 |
02/12/2013 |
640,000,000.00 |
CANARA
BANK |
PRIME
CORPORATE BRANCH-II, VERMA CHAMBERS, 2ND FLOOR, HOMJI STREET, FORT, MUMBAI -
400001, MAHARASHTRA, INDIA |
B93356624 |
|
2 |
10453734 |
07/10/2013 |
500,000,000.00 |
AXIS
BANK LIMITED |
JEEVAN
BIMA MARG, PANDRI, RAIPUR, CHHATTISGARH - |
B86999919 |
|
3 |
10418603 |
25/03/2013 |
1,100,000,000.00 |
BANK
OF BARODA |
CORPORATE
FINANCIAL SERVICES BRANCH, 4TH FLOOR, 1 |
B72856651 |
|
4 |
10399811 |
18/11/2013
* |
5,230,500,000.00 |
STATE
BANK OF INDIA |
COMMERCIAL
BRANCH, 2ND FLOOR, PUJARI CHAMBERS, PA |
B91204750 |
|
5 |
10395277 |
14/12/2012 |
510,000,000.00 |
AXIS
BANK LIMITED |
JEEVAN
BEEMA MARG, PANDRI, RAIPUR, CHHATTISGARH - |
B65266488 |
|
6 |
10394679 |
27/11/2012 |
2,160,000,000.00 |
CANARA
BANK |
PRIME
CORPORATE BRANCH-II, VERMA CHAMBERS, 2ND FLOOR, HOMJI STREET, FORT, MUMBAI -
400001, MAHARASHTRA, INDIA |
B65061202 |
|
7 |
10369121 |
10/10/2012
* |
300,000,000.00 |
AXIS
TRUSTEE SERVICES LIMITED |
AXIS
HOUSE, 2ND FLOOR, BOMBAY DYEING MILLS COMPOUND, , PANDURANG BUDHKAR MARG,
WORLI, MUMBAI - 400025, MAHARASHTRA, INDIA |
B61633244 |
|
8 |
10363840 |
26/06/2012 |
600,000,000.00 |
ICICI
BANK LIMITED |
REGIONAL
OFFICE, ICICI TOWER, NBCC PALACE, BHISHM |
B42942250 |
|
9 |
10357626 |
25/04/2012 |
1,945,000.00 |
INDUSIND
BANK LIMITED |
2401
GEN THIMMAYYA ROAD, CONTONMENT, PUNE - 411001, MAHARASHTRA, INDIA |
B40381253 |
|
10 |
10357629 |
25/04/2012 |
1,945,000.00 |
INDUSIND
BANK LIMITED |
2401
GEN THIMMAYYA ROAD, CONTONMENT, PUNE - 411001, MAHARASHTRA, INDIA |
B40382293 |
|
* Date of charge modification |
||||||
|
Unsecured Loan |
As
on 31.03.2013 [Rs.
in Millions] |
As
on 31.03.2012 [Rs.
in Millions] |
|
Short Term
Borrowings |
|
|
|
Interest free
loan and advances from related parties repayable on demand |
0.000 |
55.101 |
|
Interest free loan and advances from subsidiary companies repayable on
demand |
0.000 |
245.000 |
|
TOTAL
|
0.000 |
300.101 |
CORPORATE INFORMATION:
Subject is a
public company domiciled in India and incorporated under the provisions of the
Companies Act, 1956. Its shares are listed on two stock exchanges in India. The
company is mainly engaged in generation of electricity, Iron ore mining and
manufacturing of Iron Ore Pellets, Sponge Iron, Steel Billets, Wire Rods, H.B.
Wire and Ferro Alloys.
REVIEW OF
PERFORMANCE:
The financial year
2012-13 was a yet another challenging year due to slow down in Indian economy
and industrial production and infrastructure growth on account of high
inflation, political scenario and ongoing European debt crises. Despite these
constraints and the challenging environment, the Company has performed
reasonably well and achieved all round growth in its operations and
profitability. The highlights of the financial performance are as under:
STANDALONE OPERATIONS:
·
Gross sales revenue increased by 12.53% to
Rs.21600.200 Millions from Rs.19195.300 Millions recorded in previous year and
crossed Rs.20000.000 Millions mark.
·
PBT increased to Rs.1059.700 Millions from
Rs.998.300 Millions and PAT increased from Rs.1241.400 Millions to Rs.789.500
Millions.
During the year
the Company has recorded overall volume growth in production of across the
divisions, except sponge iron, due to constant efforts made by the Company to
improve operating efficiency, which has resulted into increase in gross sales
revenue. The operating margins remained flat due to increase in input cost on
standalone basis. The operating margins on consolidated basis however, improved
due to higher volumes and improvement in operations in Iron ore Pelletisation
plant of subsidiary Company in Orissa. The Company is making constant efforts
to improve operating efficiency.
EXPANSION/NEW
PROJECTS:
PELLET PLANT:
The expansion
project for setting up pellet plant with an installed capacity of 1.2 MTPA is
progressing ahead of schedule, and the project is expected to be commissioned
in Q2FY13. The Company has incurred a cost of Rs.3433.000 Millions in
implementation of project till 31st March, 2013, which has been partially
funded by debt of USD 60 million and balance amount from internal accruals. The
plant shall source the iron ore fines from the existing captive iron ore mines
in Chhattisgarh and also partial procurement from market.
SOLAR POWER PLANT:
The Company is
setting up 50 MW solar thermal power project at Village: Noukh, District
Jaiselmer, Rajasthan at a cost of Rs.7950.000 Millions under Jawaharlal Nehru
Solar Mission of Government of India through a SPV Company Godawari Green
Energy Limited (GGEL), which is a wholly owned subsidiary of the Company. The
project has been funded through debt equity ratio of 72:28. The project has
been fully implemented and expected to be commissioned shortly and start
commercial operation. The investment in the project has been almost completed.
The subsidiary Company has raised a debt of Rs. 5690.000 Millions from Banks
for part funding of the project and the Company has contributed equity funding
of the project by subscribing to the equity capital of SPV by Rs.1210.000
Millions and additional contribution of Rs.490.000 Millions by way of
subscribing to 9% Optionally Convertible Cumulative Preference Shares (OCCPS)
and the balance equity of Rs.560.000 Millions has been raised by private
placement of 9% OCCPS to a Strategic Investor. Each preference share shall be
convertible into equity share of Rs. 10/- each at a premium of Rs.90/- per
share. The OCCPS shall be convertible into equity shares of SPV any time after
one year from the date of COD at the discretion of investor.
FINANCE:
During the year,
the Company has raised funds of Rs.1750.000 Millions by way of Term Loans to
augment the funds requirement for normal capital expenditure and long term
working capital requirement. The Company has further refinanced high cost debt
of Rs.600.000 Millions. The Company is continuously making efforts to bring
down the cost of funding. The Company has been able maintain a comfortable long
term debt equity ratio of 1:0.99 (previous year 1:0.65) as on 31st March, 2013,
on standalone basis. The Company is further looking to refinance the high cost
debt during the current year including the debt in subsidiary Company to bring
down cost of funding.
MANAGEMENT
DISCUSSION AND ANALYSIS:
GLOBAL ECONOMY:
Global gross
domestic product (GDP) grew 3.2% in 2012 against 3.9% in 2011 largely owing to
continuation of the eurozone slowdown. The key impediments were the prolonged
eurozone turmoil, instability in the US economy, disruption of global oil
supplies and slow investments in emerging markets. Economic conditions improved
in the third quarter of 2012, primarily due to acceleration in emerging market
economies and in the US
OUTLOOK FOR 2013:
On the brighter
side of things, global growth is projected to increase during 2013 as factors
decelerating global commerce are expected to decline. However, this upturn is
projected to be more deliberate and time-consuming. Overall, it is estimated
that the global economy could grow at 3.1% in 2013
INDIAN ECONOMY:
India’s economic
growth decelerated for the second year in succession, declining from 6.2% in
2011-12 to 5% in 2012-13, the slowest growth in a decade. In turn, the subdued
performance of the services sector was largely due to a slowdown in the global
economy. India’s industrial output declined 1%, led mainly by a sharp
contraction in the manufacturing, mining and capital goods sectors (proxies for
investment activity). The issues constraining industrial production growth were
low investment on account of high interest rates, depreciating rupee, inflation
and policy slowdown. CRISIL estimates that the Indian economy could grow 6.7% in
2013-14 due to a consumption revival catalyzed by an acceleration in the
agricultural sector (predicated on a normal monsoon), lower interest rates and
higher governmental spending.
STEEL INDUSTRY:
Compared to the
global average per capita consumption of 200 kg, India’s per capita consumption
of steel is still a mere 59 kg, constrained by the lack of infrastructure
development, high cost of power and non-availability of coke. During FY
2012-13, India’s steel sector recorded a growth of around 5.86% aggregating to
a total production of around 78.12 million tonnes. India was the world’s fourth
largest crude steel producer after China, Japan, and the US.
OUTLOOK:
According to the
Planning Commission, the power sector needs to grow at 8.1% per annum for India
to attain an ambitious economic growth target of 9%. Total investments for the
Indian power sector, as projected by the Working Group on Power for the Twelfth
Five Year Plan, was Rs.13725800.000 Millions (USD 253.6 billion).The government
is scaling generation capacity through reforms. It has proposed a deduction of
100% on the profits of power sector undertakings set up in the next one year up
to 10 years Measures like credit enhancement schemes and infrastructure debt
funds are being adopted by the government to raise funds. Commercial banks,
public financial institutions, infrastructure/ power finance institutions,
international investments, bilateral credit and equity markets are expected to
be some of the major power project financiers in India.
Renewable energy
is fast emerging as a major power source. Wind energy is the largest source of
renewable energy in India; it accounts for an estimated 87% of total installed
capacity in renewable energy. The country aims to increase the importance of
wind power further; there are plans to double wind power generation capacity to
20 GW by 2022. Solar energy accounts for 1% of total renewable energy installed
capacity. However, the share is not indicative of the country’s true potential,
which stands at an estimated 5,000 TWH per annum.
CONTINGENT LIABILITIES:
1.
Counter Guarantees given to banks against Bank
guarantees issued by the Company Banker aggregate to Rs.125.900 Millions
(Previous Year Rs.112.600 Millions.)
2.
Corporate Guarantees issued in favour of bank
aggregating to Rs.481.300 Millions (Previous Year Rs.453.500 Millions) in
respect of financing facilities granted to other body corporate.
3.
Disputed liability of Rs.1.880 Millions (Previous
Year Rs.2.732 Millions) on account of Service Tax against which the company has
preferred an appeal.
4.
Disputed liability of Rs.40.578 Millions (Previous
Year Rs.37.481 Millions) on account of CENVAT against which the company has
preferred an appeal.
5.
Disputed liability of Rs.35.902 Millions (Previous
Rs.28.757 Millions) on account of Sales Tax against which the company has
preferred an appeal.
6.
Disputed liability of Rs.4.655 Millions (Previous
Year Rs.0.334) on account of Income Tax against which the company has preferred
an appeal.
7.
Disputed energy development cess demanded by the
Chief Electrical Inspector, Govt. of Chhattisgarh Rs.239.388 Millions (Previous
Year Rs.159.600 Millions). The Hon’ble High Court of Chhattisgarh has held the
levy of cess as unconstitutional vide its order dated 20th June,2008. The State
Govt. has filed a Special Leave Petition before Hon’ble Supereme Court, which
is pending for final disposal.
8.
Disputed demand of Rs.75.800 Millions (Previous
Year Rs.75.800 Millions) from Chhattisgarh State Power Distribution Company
Limited relating to cross subsidy on power sold under open access during the
financial year 2009-10. The company has contested the demand and obtained stay
from CSERC and expect a favourable decision in favour of company.
9.
The company has provided royalty on captive iron
ore mining on the basis of rates applicable to different grades of iron ore
mined based on the rates published by Indian Bureau of Mines periodically.
However, the mining department is collecting advance royalty on the basis of
rate applicable to the highest grade of iron ore, as mentioned in the mining
plan of the company, irrespective of the actual grade of material mined. The
company has contested the above arbitrary levy of royalty before the Hon’ble
High Court of Chhattisgarh and accordingly excess amount of royalty so
deposited Rs.265.000 Millions shown as an advance royalty.
10. Estimated amount
of contracts remaining to be executed on capital accounts Rs.595.900 Millions
(Previous Year Rs.1699.500 Millions).
FIXED ASSETS:
· Freehold Land
·
Leasehold
Land
·
Iron
Ore Mines
·
Site
and Land Development
·
Factory
Shed and Building
·
Plant
and Machinery
·
Furniture
and Fixtures
·
Vehicles
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.61.35 |
|
|
1 |
Rs.100.21 |
|
Euro |
1 |
Rs.83.52 |
INFORMATION DETAILS
|
Information Gathered
by : |
PLK |
|
|
|
|
Report Prepared
by : |
TPT |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
6 |
|
--CREDIT LINES |
1~10 |
6 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
54 |
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.