MIRA
INFORM REPORT
|
Report Date : |
11.07.2014 |
IDENTIFICATION DETAILS
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Name : |
HINDALCO INDUSTRIES LIMITED BIRLA COPPER UNIT OF HINDALCO INDUSTRIES LIMITED |
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Registered
Office : |
Century Bhavan, 3rd Floor, |
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Country : |
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Financials (as
on) : |
31.03.2013 |
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Date of
Incorporation : |
15.12.1958 |
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Com. Reg. No.: |
11-011238 |
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Capital
Investment / Paid-up Capital : |
Rs.1914.800 Millions |
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CIN No.: [Company Identification
No.] |
L27020MH1958PLC011238 |
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TAN No.: [Tax Deduction &
Collection Account No.] |
MUMI05060G |
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PAN No.: [Permanent Account No.] |
AAACH1201R |
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Legal Form : |
Public Limited
Liability Company. The Company’s Shares are Listed on the Stock Exchanges. |
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Line of Business
: |
Manufacturer of
Aluminum Products. |
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No. of Employees
: |
20000
(Approximately) |
RATING & COMMENTS
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MIRA’s Rating : |
Aa (74) |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Exist |
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Comments : |
Subject is one of the largest integrated aluminum manufacturer in India.
It is a well-established and reputed company having fine track record. The rating reflects company’s healthy financial risk profile marked by
adequate liquidity position and fair profitability of the company. Trade relations are reported as fair. Business is active. Payments are
reported to be regular and as per commitments. Company can be considered good 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.
INDIAN ECONOMIC OVERVIEW
N E W S
The economy grew 4.7 %in 2013/14, marking a second
straight year of sub-5 % growth – the worst slowdown in more than a quarter of
a century. The data was below an official estimate of 4.9 % annual growth and
compared with 4.5 % in the last fiscal year. However, the current account
deficit narrowed sharply to $ 32.4 billion at 1.7 % of gross domestic product,
in 2013/14 from a record high of $ 98.8 billion or 4.7 %, the year before.A sharp fall in gold imports due to restrictions on
overseas purchases and muted import of capital goods helped shrink the current
account deficit.
Online retailer Flipkart
has acquired fashion portal Myntra as it prepares to
battle with the rapidly expanding India arm of the global e-commerce giant
Amazon. The company raised $ 210 million from Russian Investment firm DST Global
which has also invested in companies like Facebook,
Twitter and Alibaba Group.
General Motors will start exporting vehicles
from its Talegaon plant near Pune
in the second half of 2014. GM was one of the few global carmakers that was
using its India plant only for the domestic market.
Google has overtaken Apple as the world’s top
brand in terms of value, according to global market research agency Millward Brown. Google’s brand value shot up 40 % in a year
to $ 158.84 billion. The top 10 of the 100 slots were dominated by US
companies.
Infosys lost another heavy weight when B G Srinivas,
a board member put in his papers. He is the third CEO-hopeful to quit after
Chairman N R Narayana Murthy’s return to the company
– Ashok Vemuri and V Balakrishnan being the other two.While
Vemuri went on to lead IGate,
Balakrishnan joined politics.
Naresh Goyal – promoted Jet Airways posted biggest
quarterly loss – Rs 2153.37 crore
– in the three months ended March 31, mainly because it has been offering
discounts to passengers to fill planes.
William S Pinckney – Chairman and CEO of
Amway India was arrested by the Andhra Pradesh Police in connection with a
complaint against the direct selling firm. This is the second time that he has
been taken into custody. A year, ago the Kerala
Police had arrested Pinckney and two company directors on charges of financial
irregularities.
China has told its state-owned enterprises to
sever links with American consulting firms after the United States charged five
Chinese military officers wih hacking US companies.
China’s action which targets consultancies like McKinsey & Co. and the
Boston Consulting Group, sterns from fears that the first are providing trade
secrets to the US governments.
India has emerged as a country with some of
the highest unregistered businesses in the world. Indonesia has the maximum
number of shadow businesses, says a study of 68 countries by Imperial College
Business School in London.
Pfizer has abandoned its attempt to buy AstraZeneca for nearly $ 118 billion after the latter
refused an offer of 55 pounds a share.
EXTERNAL AGENCY RATING
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Rating Agency Name |
CARE |
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Rating |
Non-Convertible Debentures= AA+ |
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Rating Explanation |
High credit quality and low credit risk. |
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Date |
07.08.2013 |
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 (91-22-66917000)
LOCATIONS
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Registered Office/ Marketing Head Office: |
Century Bhavan, 3rd Floor, Dr. Annie Besant Road, Worli, Mumbai –
400 025, Maharashtra, India |
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Tel. No.: |
91-22-24308491 /
92 / 93 / 66626666 |
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Fax No.: |
91-22-24227586 /
24362516 |
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E-Mail : |
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Website : |
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Corporate
Office 1/ - Marketing Head Office
(Copper) : |
Aditya Birla
Centre, III Floor, B Wing, S. K. Ahire Marg, Worli, Mumbai – 400030, |
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Tel No.: |
91-22-66525000 / 24995000 |
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Fax No.: |
91-22-66525847 / 24995841 |
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Email : |
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Website: |
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Corporate
Office 2: |
Foil and Packaging Business, Kalwa
Works, Thane Belapur Road, Near Vitawa
Village, Kalwa, Thane-400 605, Maharashtra,
India |
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Tel. No.: |
91-22-25347151 |
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Fax No. : |
91-22-24227586 |
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Email : |
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Regional
Office – Aluminum : |
Ahura Centre, 1st Floor, 82, Mahakali Caves Road, Mumbai – 400 093, Maharashtra, India Tel No.: 91-22-66917031 / 30 / 37 / 40 /00 Fax No.:91-22-66917070 Vandhana, 5th Floor ,11 Tolstoy Marg, New Delhi – 110 001, India Tel No.: 91-11-42200204 / 228 / 230 / 271 / 200 Fax No.:91-11-23721595 Jeevan Deep, 2nd Floor 1, Middleton Street Kolkata – 700 071, West Bengal, India Tel No.: 91-33-22809710 Fax No.:91-33-22886139 Industry House, 7th Floor, 45, Race Course Road, Bangalore – 560 001, Karnataka, India Tel No.:91-80-4041 6010 / 21 / 22 / 00 |
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Principal
Office and Works / Renusagar
Power Division : |
District Sonbhadra, P. O. Renukoot – 231
217, Mirzapur, Uttar Pradesh, India |
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Tel. No.: |
91-5446-252077-9/
272501-5 |
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Fax No.: |
91-5446-252107 / 252427/
272382 |
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E-Mail : |
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Birla
Copper Division: |
P. O. Dahej, Lakhigam, District Bharuch – 392 130, Gujarat, India |
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Tel. No.: |
91-2641-256004-06/251009 |
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Fax No.: |
91-2641-251002-3 |
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E-Mail : |
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Foil and Wheels Division: |
Village Khutli, Khanvel, Silvassa – 396 230, |
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Tel. No.: |
91-260-2677021-4 |
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Fax No.: |
91-260-2677025 |
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Export Office: |
9/1, |
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Tel. No.: |
91-33-22480949 /
22200464 |
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Fax No.: |
91-33-22200214 |
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Email: |
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Factory : |
ALUMINIUM
AND POWER Renukoot Plant P.O. Renukoot -231217, District Sonbhadra, Uttar Pradesh, India Tel No.:
91-5446-252077-9 Fax No.:91-5446-252107 Renusagar Power Division P. O. Renusagar, District Sonbhadra, Uttar Pradesh, India Tel No.:
91-5446-272502-5 Fax No.:
91-5446272382 Alupuram Smelter Alupuram
P.B. No. 30, Kalamassery – 683 104, District: Ernakulam, Kerala,
India Tel No.: 91-484-2532441 Fax No.:
91-484-2532468 Hirakud Smelter Hirakud 768
016, District Sambalpur, Orissa,
India Tel No.:
91-663-2481307 Fax No.:91-663-2481356 Hirakud Power Post Box No.12, Hirakud 768 016,
District: Sambalpur, Orissa
Alupuram, India Tel No.: 91-663-2481408 Fax No.:
91-663-2481342 COPPER: Birla Copper Division P.O. Dahej, Lakhigam
Post, District. Bharuch – 392 130, Tel No.: 91-2641- 256004-06/ 251009 Fax No.:
91-2641- 251002-3 CHEMICALS: Muri Alumina Post Chotamuri-835 101, District Ranchi,
India Tel No.: : 91-6522- 244396 Fax No.:
91-6522-244231 Village Yamanapur , Tel No.: 91-831-2472716 Fax No.:91-831-2472728 MINES Chandgad Mines At Post: Chandgad – 416509,
District: Kolhapur, Maharashtra,
India Tel/Fax: (02320) 213342 Durgmanwadi Mines At Post Radhanagri, District: Kolhapur, Maharashtra – 416
212, India Tel No.:
91-2321-260036 Fax No.:
91-2321-260037 Lohardaga Mines District: Lohardaga – 835 302, Jharkhand, India Tel No.:
91-6526-224446 Fax No.:
91-6526-224446 Talabira Mines Talabira-1, Qrs. No. A6/1, Saraswati
Vihar, P.O. Sankarma,
District Sambalpur, Orissa,
India Tel No.:
91-663-2230573 SHEET,
FOIL, WHEEL, PACKAGING AND EXTRUSIONS Foils and Wheels Division, Village Khutli,
Khanvel, Silvassa-396230, U.T.,
India Tel No.: 91-260-2677021/4 Fax No.: 91-260-2677025 Belur Sheet 39, Grand Trunk Road, Belurmath
711 202, District: Howrah, West Bengal,
India Tel No.: 91-33-26547210 Fax No.:
91-33-26549982 Taloja Sheet Plot 2, MIDC Industrial Area, Taloja
A.V., District: Raigad, Navi
Mumbai – 410 208, Maharashtra, India Tel No.
91-22-27412261/ 66292929 Fax No.:
91-22-27412430 Alupuram Extrusions Alupuram,
P.B. No.30, Kalamassery – 683 104, District: Ernakulam, Kerala,
India Tel No.:
91-484-2532441 Fax No.: 91-484- 2532468 Mouda Unit Village Dahali, Tel No:
91-7115-660777/786 Kollur Works Village- Kollur, Re Puram Mandal, Via Mutangi, Medak District, Andhra
Pradesh – 502 300, India Tel No::
91-8413- 234300/ 234204/05 Fax No.:
91-8455-288829 |
DIRECTORS
AS ON 31.03.2013
|
Name : |
Mr. Kumar Mangalam
Birla |
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Designation : |
Chairman |
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Address : |
16-A, IL-Palazzo, Little Gibbs Road, Mumbai – 400 006, Maharashtra, India |
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Qualification : |
A.C.A, M.B.A. |
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Date of Birth : |
14.06.1967 |
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Date of Appointment : |
16.11.1992 |
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Name : |
Mr. Debnaranyan
Bhattacharya |
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Designation : |
Managing Director |
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Qualification : |
B. E. (Chemicals), IIT |
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Date of Birth : |
13.09.1948 |
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Date of Appointment : |
30.04.2003 |
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Name : |
Mrs. Rajashree Birla |
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Designation : |
Non-Executive Director |
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Address : |
16-A, IL- Palazzo, Little Gibbs Road, Mumbai – 400 006, Maharashtra, India |
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Date of Appointment : |
15.03.1996 |
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Name : |
Mr. Chaitan Manbhai
Maniar |
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Designation : |
Non-Executive Director |
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Address : |
Garden House, 1st Floor, Dadyseth, 2nd Cross
Lane, Chowpatty Band Stand, Mumbai – 400 007, Maharashtra, India |
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Date of Appointment : |
08.03.1983 |
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Name : |
Mr. Madhukar Manilal
Bhagat |
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Designation : |
Non-Executive Directors |
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Name : |
Mr. Kailash Nath Bhandari |
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Designation : |
Non-Executive Directors |
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Name : |
Mr. Askaran K. Agarwala |
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Designation : |
Non-Executive Director |
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Address : |
“Haveli”, Flat No.3, L.D. Ruparel Marg, Mumbai – 400 006,
Maharashtra, India |
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Qualification : |
B.Com, F.C.A, LLB |
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Date of Birth : |
01.07.1993 |
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Date of Appointment : |
11.09.1998 |
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Name : |
Mr. Narendra Jamnadas
Jhaveri |
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Designation : |
Non-Executive Directors |
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Name : |
Mr. Ram Charan |
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Designation : |
Non-Executive Directors |
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Name : |
Mr. Jagdish Khattar |
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Designation : |
Non-Executive Directors |
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Qualification : |
BA (Hons), LLB |
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Date of Birth : |
18.12.1942 |
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Date of Appointment : |
09.05.2011 |
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Name : |
Mr. Meleveetil Damodaran
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Designation : |
Non-Executive Directors |
KEY EXECUTIVES
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Name : |
Mr. Anil Malik |
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Designation : |
Company Secretary |
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Name : |
Mr. Praveen Maheshwari |
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Designation : |
Chief Financial Officer |
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BUSINESS / UNIT HEAD: |
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Name : |
Mr. Dilip Gaur |
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Designation : |
Group Executive President, Copper |
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Name : |
Mr. Sachin Satpute |
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Designation : |
Chief Marketing
Officer, Aluminium |
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Name : |
Mr. Satish Mohan Bhatia |
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Designation : |
President (Foil and Packaging) |
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Name : |
Mr. Raghavendra Dhulkhed |
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Designation : |
Senior President (Operations) |
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Name : |
Mr. Sanjay Sehgal |
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Designation : |
President (Chemicals and International Trade) |
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Name : |
Mr. Dinesh Kumar Kohly |
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Designation : |
Chief Operating Officer (Renukoot and Renusagar Units) |
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CORPORATE : |
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Name : |
Mr. Bharat Bhushan Jha |
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Designation : |
Senior President
(Corporate Projects and Procurement) |
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Name : |
Mr. Vineet Kaul |
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Designation : |
Chief People Officer |
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NOVELIS INC |
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Name : |
Mr. Debnarayan Bhattacharya |
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Designation : |
Vice Chairman |
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Name : |
Mr. Philip Martens |
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Designation : |
President and Chief Executive Officer |
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UTKAL ALUMINA INTERNATIONAL LIMITED |
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Name : |
Mr. Surya Kanta Mishra |
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Designation : |
Chief Executive Officer |
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ADITYA BIRLA MINERALS LIMITED |
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Name : |
Mr. Debnarayan Bhattacharya |
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Designation : |
Chairman |
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Name : |
Mr. Sunil Kulwal |
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Designation : |
Chief Executive Officer and MD |
SHAREHOLDING PATTERN
AS ON 31.03.2014
|
Category of Shareholders |
No. of Shares |
Percentage
of Holding |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
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|
2398696 |
0.13 |
|
|
745082362 |
39.16 |
|
|
16316130 |
0.86 |
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|
16316130 |
0.86 |
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|
763797188 |
40.15 |
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Total shareholding of Promoter and Promoter Group (A) |
763797188 |
40.15 |
|
(B) Public Shareholding |
|
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|
|
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|
12480624 |
0.66 |
|
|
81852622 |
4.30 |
|
|
345520 |
0.02 |
|
|
203178657 |
10.68 |
|
|
555495399 |
29.20 |
|
|
853352822 |
44.86 |
|
|
|
|
|
|
77687584 |
4.08 |
|
|
|
|
|
|
145967118 |
7.67 |
|
|
9081583 |
0.48 |
|
|
52563572 |
2.76 |
|
|
10422975 |
0.55 |
|
|
6356737 |
0.33 |
|
|
32554920 |
1.71 |
|
|
3228940 |
0.17 |
|
|
285299857 |
15.00 |
|
Total Public shareholding (B) |
1138652679 |
59.85 |
|
Total (A)+(B) |
1902449867 |
100.00 |
|
(C) Shares held by Custodians and against which Depository
Receipts have been issued |
0 |
0.00 |
|
|
14542309 |
0.00 |
|
|
147595692 |
0.00 |
|
|
162138001 |
0.00 |
|
Total (A)+(B)+(C) |
2064587868 |
0.00 |
(1) Indian
Shareholding of securities (including shares, warrants,
convertible securities) of persons belonging to the category Promoter and
Promoter Group
|
Category of Shareholders |
No. of Shares |
Percentage
of Holding |
|
Igh
Holdings Private Limited |
34,99,63,487 |
16.95 |
|
Turquoise Investments And Finance Private Limited |
12,40,12,468 |
6.01 |
|
Trapti
Trading & Investments Private Limited |
9,30,63,124 |
4.51 |
|
Grasim
Industries Limited |
5,45,42,475 |
2.64 |
|
Aditya Birla Nuvo Limited |
3,35,06,337 |
1.62 |
|
Pilani
Investment & Ind. Corp. Limited. |
2,91,85,398 |
1.41 |
|
Umang
Commercial Company Limited |
2,73,30,360 |
1.32 |
|
Birla
Institute Of Technology And Science |
2,15,83,090 |
1.05 |
|
Trustee Holding Shares Under The Scheme Of Merger Of Hil/Igcl/Igfl On Behalf Of Hindalco
|
1,63,16,130 |
0.79 |
|
Birla
Group Holdings Private Limited |
67,31,467 |
0.33 |
|
Kumar Mangalam Birla |
8,65,740 |
0.04 |
|
Manav
Investment & Trading Co. Limited. |
6,72,571 |
0.03 |
|
Aditya Vikram Kumar Mangalam Birla Huf |
6,48,632 |
0.03 |
|
Rajashree Birla |
6,12,470 |
0.03 |
|
Tgs
Investment And Trade Private Limited |
44,85,249 |
0.22 |
|
Vasavadatta Bajaj |
1,21,319 |
0.01 |
|
Neerja Birla |
1,14,640 |
0.01 |
|
Kumar Mangalam Birla F & N G Of Ananyashree
Birla |
35,895 |
0.00 |
|
Global Holdings Private Limited |
6,336 |
0.00 |
|
Total |
76,37,97,188 |
37.00 |
(*) The term encumbrance has the same meaning as assigned to
it in regulation 28(3) of the SAST Regulations, 2011.
Shareholding of securities (including shares, warrants,
convertible securities) of persons belonging to the category Public and holding
more than 1% of the total number of shares
|
Category of Shareholders |
No. of Shares |
Percentage
of Holding |
|
Life Insurance Corporation Of India & Its Associate
Funds |
239089223 |
11.58 |
|
National Westminster Bank PLC as Deposit |
48243233 |
2.34 |
|
Bajaj Allianz Life Insurance Company Limited |
37056110 |
1.79 |
|
Platinum Investment Management Limited A |
27287718 |
1.32 |
|
Sprucegrove
Investment Management Limited A/ |
22616023 |
1.10 |
|
Dimensional Emerging Markets Value Fund |
22592777 |
1.09 |
|
Total |
396885084 |
19.22 |
Shareholding of securities (including shares, warrants,
convertible securities) of persons (together with PAC) belonging to the
category “Public” and holding more than 5% of the total number of shares of the
company
|
Category of Shareholders |
No. of Shares |
Percentage
of Holding |
|
Life Insurance Corporation Of India |
239089223 |
11.58 |
|
Total |
239089223 |
11.58 |
Details of Locked-in Shares
|
Category of Shareholders |
No. of Shares |
Percentage
of Holding |
|
Igh
Holdings Private Limited |
12,10,00,000 |
5.86 |
|
Turquoise Investments And Finance Private Limited |
2,50,00,000 |
1.21 |
|
Umang
Commercial Company Limited |
1,00,000 |
0.00 |
|
Tgs
Investment And Trade Private Limited |
39,00,000 |
0.19 |
|
Total |
15,00,00,000 |
7.27 |
Details of Depository Receipts (DRs)
|
Category of Shareholders |
No. of Shares |
Percentage
of Holding |
|
GDR |
16,21,38,001 |
7.85 |
|
Total |
16,21,38,001 |
7.85 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer of Aluminium Products. |
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Products : |
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PRODUCTION STATUS [AS ON 31.03.2011]
|
Class of goods |
Installed Capacity [Qty] |
Actual Production [Qty] |
|
Aluminium Metal |
506400* |
537935 |
|
Rolled Products |
205000 |
199821# |
|
Extruded Products |
31000 |
35865@ |
|
Conductor Redraw Rods |
56400 |
94307$ |
|
Aluminium Foil |
40000 |
17698 |
|
Aluminium Wheel |
-- |
-- |
|
|
PCS |
PCS |
|
Hydrate and Alumina |
1500000 |
1352877 |
|
Electricity |
1109.200 MW |
9213 MU |
|
Electricity (Co-generation) |
248.8 MW |
1463 MU |
|
Continuous Cast Copper Rods (CCR) |
142200 |
144553 |
|
Copper cathodes |
500000 |
335598 |
|
Sulphuric Acid |
1670000 |
1097158 |
|
Phosphoric Acid |
180000 |
102167 |
|
DAP and complexes |
400000 |
219805 |
|
Gold |
15 |
6960 |
|
Silver |
150 |
45076 |
NOTE:
1.
* Installed capacity of Hirakud
Smelter increased.
2.
# Includes 56 T (Previous Year 7 T) converted from
outside party, 4134 T (Previous year 3618 T) being production out of customers’
material and 23126 (Previous year 21461 T) transferred for captive consumption.
3.
@ Include Nil T (Previous year 1 T) converted from
outside party and 319 T (Previous year 67 T) transferred for captive
consumption.
4.
$ Include 13 T (Previous year Nil T) transferred
for captive consumption.
5.
Alumina includes 1059478 T (1053571 T) transferred
for own consumption/ further processing.
6.
Production of CCR, Copper cathodes, Sulphuric acid, and Phosphoric acid include 533 T, 142926
T, 318495 T and 102,167 T (Previous year 1182 T, 148424 T, 251654 T and 85187
T) respectively which have been captively consumed /
to be consumed. Copper cathodes also include 10707 T (Previous Year Nil T)
being production out of customers’ material.
GENERAL INFORMATION
|
No. of Employees : |
20000
(Approximately) |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
|
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|
Bankers : |
· UCO Bank, Mumbai, Maharashtra, India · State Bank of India, Mumbai, Maharashtra, India · Allahabad Bank, Mumbai, Maharashtra, India · American Express Bank Limited, Mumbai, Maharashtra, India · Bank of America, Mumbai, Maharashtra, India · Citibank N. A., Mumbai, Maharashtra, India · ABN Amro Bank N.V., Mumbai, Maharashtra, India ·
Union Bank of India, Mumbai, Maharashtra, India ·
IDBI Bank Limited, Mumbai, Maharashtra, India · Hongkong and Shanghai Banking Corporation Limited · Standard Chartered Grindlays Bank, Plc, 19, N. S. Road, Kolkata, West Bengal, India |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Facilities : |
LONG TERM
BORROWINGS |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
NOTE: (a)
Debentures comprise of following:
All the above Debentures are secured by all the movable both present
and future (except movable assets of Mahan Aluminium
Project, Aditya Aluminium
Project, Kalwa plant and Current Assets) and
certain immovable properties of the Company. (b) Term Loans from
Banks of Rs.51429.900 Millions (as at March 31, 2012) have been prepaid by
the Company on June 30, 2012. (c) Term Loans from
Banks of Rs.72270.500 Millions (Previous year Rs.58907.700Millions) and from
Other Parties of Rs.929.500 Millions (Previous year Rs.783.500 Millions) are secured by
a first ranking charge/mortgage/security interest in respect of all the
movable assets (except Current Assets) and all the immovable properties of
Mahan Aluminium Project, both present and future,
and a second ranking charge/mortgage/security interest, in favour of the Security Trustee, in respect of the Current
Assets. However, security creation is pending on 1,086.15 hectres
of land due to non availability of approval from the appropriate authority. Above loans carry interest at the State Bank of India’s base rate plus
1.75% and are repayable in 42 quarterly instalments
commencing from September 30, 2013 and ending on December 31, 2023. The
repayment in each financial year in percentage is 4.25, 7.75, 9, 9, 10, 10,
10, 10, 10.75, 11 and 8.25 of the loan amount. Post Commercial Operation Date
of the Mahan Aluminium Project, the Company will
have an option to prepay all or any portion of this Loan, without payment of
Prepayment Penalty within 15 (fifteen) days after any annual Margin Reset
Date. (d) Term Loans from
Banks of Rs.67962.400 Millions (Previous year ` Nil) and from Other Parties
of Rs.1437.500 Millions (Previous year ` Nil) are
secured by a first ranking charge/mortgage/security interest in favour of the Security Trustee, in respect of all the movable and immovable
properties both present and future and asecond
charge in respect of all the inventory related to Aditya
Aluminium Project. However, security on 2,510.61
acres land is pending due to non availability of approval from the
appropriate authority. Above loans carries interest at the State Bank of India’s base rate
plus 1.25% and are repayable in 40quarterly instalments
commencing from June 1, 2015 and ending on March 1, 2025. The repayment in
each financial year in percentage is 2.32, 4.20, 6.20, 8.60, 9, 11, 12.50,
15, 14 and 17.18 of the loan amount. The Company will have an option to prepay all or any portion of this
Loan, without payment of Prepayment Penalty within 30 (Thirty) days after any
annual Interest Reset Date. (e) Term Loans from
Other Parties include Foreign Currency Term Loans from Export Development
Canada (EDC) of USD 100 million (Previous year USD Nil) are secured by a
first charge on all movable assets of the Mahan Aluminium
Project and a second charge on the current assets of the Company, both
present and future. Above loan carry interest at the LIBOR plus 1.25% and are repayable in
43 quarterly installments commencing from June 30, 2013 and ending on
December 31, 2023. The repayment in each financial year in percentages 9.30,
9.30, 9.30, 9.30, 9.30, 9.30. 9.30. 9.30, 9.30, 9.30 and 7 of the loan
amount. Subject to the prevailing RBI ECB Regulations, the Company may prepay
all or any part of the Loan at any time. (f) Deferred
Payment Liabilities represent sales tax deferral which is payable in yearly
installment by FY 2018. SHORT TERM
BORROWINGS
(a) Cash Credit,
Export Credit etc. granted under the Consortium Lending Arrangement are
secured by a first pari-passu charge by way of
hypothecation of entire stocks of raw materials, work-in-process, finished
goods, consumable stores and spares and also book debts pertaining to the
Company’s Aluminium business. Working Capital Loan
of State Bank of India for the Copper business is secured by a first pari-passu charge by way of hypothecation of stocks of
raw materials, work-in-process, finished goods and consumable stores and spares
of Copper business, both present and future. (b) Payable under
Trade Financing Arrangements comprise of unsecured credit availed from Banks
for payment to suppliers for raw materials purchased by the Company. The
arrangements are interest-bearing and are normally payable within 180 days. |
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
Singhi and Company Chartered Accountants |
|
|
|
|
Cost Auditors : |
|
|
Name : |
R. Nanabhoy and
Company Cost Accountant |
|
Address : |
Mumbai, Maharashtra
India |
|
|
|
|
Joint Ventures : |
· Mahan Coal Limited Hydromine Global
Minerals (GMBH) Limited |
|
|
|
|
Trust of the Company : |
Trident Trust |
|
|
|
|
Subsidiaries : |
·
Hindalco Guinea SARL ·
Minerals & Minerals Limited ·
Aditya Birla Chemicals (India) Limited ·
Utkal Alumina International Limited ·
Suvas Holdings Limited ·
Renukeshwar Investments
& Finance Limited ·
Renuka Investments
& Finance Limited ·
Dahej Harbour and
Infrastructure Limited ·
Lucknow Finance Company
Limited ·
Hindalco-Almex Aerospace
Limited ·
HAAL USA Inc. (dissovled
w.e.f. 23rd April 2012) ·
Tubed Coal Mines Limited ·
East Coast Bauxite Mining Company Private Limited ·
Mauda Energy Limited ·
Birla Resources Pty Limited ·
Aditya Birla Minerals Limited ·
Birla Maroochydore
Pty Limited ·
Birla Nifty Pty Limited ·
Birla Mt. Gordon Pty Limited ·
AV Minerals (Netherlands) B.V. ·
AV Metals Inc. ·
Novelis MEA Limited
(Dubai) ·
Novelis Inc. ·
Albrasilis - Aluminio do Brazil Industria e Comercia Ltda ·
Novelis do Brasil Ltda. ·
4260848 Canada Inc. ·
4260856 Canada Inc. ·
Novelis Cast House
Technology Limited ·
Novelis No. 1 Limited
Partnership ·
Novelis Sheet Ingot
GmbH ·
Novelis Lamines France SAS ·
Novelis PAE SAS ·
Novelis Aluminum Beteiligungs GmbH ·
Novelis Deutschland
GmbH ·
Novelis Aluminum Holding
Company ·
Novelis Italia SpA ·
Novelis (Shanghai)
Aluminum Trading Company ·
Aluminum Company of Malaysia Berhad ·
Alcom Nikkei Specialty Coatings Sdn Berhad ·
Al Dotcom Sdn Berhad # ·
Novelis (India) Infotech Limited ·
Novelis de Mexico SA de
CV ·
Novelis Korea Limited ·
Novelis AG ·
Novelis Switzerland SA ·
Novelis Europe Holdings
Limited ·
Novelis UK Limited ·
Aluminum Upstream Holdings LLC (Delaware) ·
Eurofoil, Inc. (USA)
(New York) ·
Logan Aluminum Inc. (Delaware) ·
Novelis Corporation
(Texas) ·
Novelis Madeira, Unipessoal, Limited ·
Novelis Services
Limited ·
Novelis Brand LLC
(Delaware) ·
Novelis PAE Corp
(Delaware) ·
Novelis South America
Holdings LLC ·
Novelis (China)
Aluminum Products Company Ltd. ·
8018227 Canada Inc. ·
8018243 Canada Limited ·
Novelis Acquisitions
LLC (Delaware) ·
Novelis North America
Holdings Inc. (Delaware) ·
Novelis Delaware LLC
(Delaware) ·
Novelis Vietnam Company
Ltd. |
|
|
|
|
Associates : |
· Aditya Birla Science and Technology Company Limited Idea Cellular Limited Aluminium Norf GmbH Consorcio Candonga MiniMRF LLC,
Delaware Deutsche Aluminium Verpackung
Recycling GmbH France Aluminium Recyclage
SA |
CAPITAL STRUCTURE
AS ON 31.03.2013
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
2100000000 |
Equity Shares |
Re. 1/- each |
Rs.2100.000 Millions |
|
25000000 |
Redeemable Cumulative Preference Shares |
Re. 2/- each |
Rs.50.000 Million |
|
|
|
|
|
|
|
|
|
Rs.2150.000
Millions |
Issued Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
1915136714 |
Equity Shares |
Re. 1/- each |
Rs.1915.137 Millions |
|
|
|
|
|
Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
1915129317 |
Equity Shares |
Re. 1/- each |
Rs.1915.100 Millions |
|
546249 |
Less: Forfeited Shares |
|
Rs.0.500 Million |
|
|
Add: Forfeited Shares |
|
Rs.0.200 Million |
|
|
|
|
|
|
|
|
|
Rs.1914.800
Millions |
# Issued Equity Share Capital includes 7,397
Equity Shares (Previous year 7,397 Equity Shares) of Rs.1/- each
issued on Rights basis kept in abeyance due to
legal case pending.
(a) Reconciliation of shares outstanding at the beginning and at the end
of the reporting period:
|
Equity Shares |
Number
of Shares |
|
Shares outstanding at the beginning of the year |
1914542308 |
|
Shares allotted pursuant to exercise of ESOP |
40760 |
|
Shares
outstanding at the end of the year |
1914583068 |
(b) Rights, preferences and restrictions attached to Equity Shares:
The Company has one class of equity shares
having a par value of ` 1/- per share. Each shareholder is eligible for one
vote per share held. The dividend proposed by the Board of Directors is subject
to the approval of the shareholders in the ensuing Annual General Meeting,
except in case of interim dividend. In the event of liquidation, the equity
shareholders are eligible to receive the remaining assets of the Company after
distribution of all preferential amounts, in proportion to their shareholding.
(c) Details of shareholders
holding more than 5% equity Shares in the Company on reporting date:
|
Name of
Shareholder |
Number
of Shares |
% holding |
|
IGH Holdings Private Limited |
228963487 |
11.96 |
|
Turquoise Investment and Finance Limited |
99012468 |
5.17 |
|
Morgan Guaranty Trust Company of New York
(represents GDRs) |
159663688 |
8.34 |
|
Life Insurance Corporation of India and
its Associates |
209341326 |
10.93 |
|
|
|
|
|
Total |
696980969 |
36.40 |
(d) Shares reserved for issue under options:
The Company has reserved equity shares for
issue against warrants allotted on preferential basis to the Promoter Group.
The Company has also reserved equity shares for issue under the Employee Stock
Option Scheme.
“Money received against Share Warrants” share
warrants allotted to the Promoter Group and Note No.40 on “Share Based Payment”
for details of Employee Stock Option Scheme.
Money received against Share Warrants:
The Company has allotted 150,000,000 warrants
on a preferential basis to the Promoter Group on 22nd March, 2012 entitling
them to apply for and obtain allotment of one equity share of ` 1/- each fully
paid-up at a price of ` 144.35 per share against each such warrant at any time
after the date of allotment but on or before the expiry of 18 months from the
date of allotment in one or more tranches. The
Company has received Rs.5413.100 Millions being 25% against these warrants. The
entire amount so received has been utilised for
various Greenfield and Brownfield projects expenditure.
AFTER 31.03.2013
Authorised Capital : Rs.2150.000
Millions
Issued, Subscribed & Paid-up Capital : Rs.2064.583
Millions
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 |
|
1914.800 |
1914.800 |
|
(b) Reserves & Surplus |
|
332396.000 |
312996.800 |
|
(c) Money
received against share warrants |
|
5413.100 |
5413.100 |
|
|
|
|
|
|
(2) Share Application money pending allotment |
|
0.000 |
0.000 |
|
Total
Shareholders’ Funds (1) + (2) |
|
339723.900 |
320324.700 |
|
|
|
|
|
|
(3)
Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
|
204430.500 |
111151.300 |
|
(b) Deferred tax liabilities (Net) |
|
11911.400 |
12245.600 |
|
(c) Other long term liabilities |
|
9742.800 |
9531.000 |
|
(d) long-term provisions |
|
3009.400 |
2873.200 |
|
Total Non-current Liabilities (3) |
|
229094.100 |
135801.100 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a) Short term borrowings |
|
37017.200 |
34567.800 |
|
(b) Trade payables |
|
30515.200 |
46597.700 |
|
(c) Other current
liabilities |
|
19240.900 |
9986.100 |
|
(d) Short-term provisions |
|
10594.300 |
9198.800 |
|
Total Current Liabilities (4) |
|
97367.600 |
100350.400 |
|
|
|
|
|
|
TOTAL |
|
666185.600 |
556476.200 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i)
Tangible assets |
|
70710.000 |
71259.500 |
|
(ii) Intangible Assets |
|
266.500 |
242.500 |
|
(iii) Capital
work-in-progress |
|
236051.100 |
162567.000 |
|
(iv)
Intangible assets under development |
|
0.100 |
2.400 |
|
(b) Non-current Investments |
|
140501.700 |
135037.000 |
|
(c) Deferred tax assets (net) |
|
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
|
16810.800 |
22495.300 |
|
(e) Other Non-current assets |
|
345.100 |
78.100 |
|
Total Non-Current Assets |
|
464685.300 |
391681.800 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a) Current investments |
|
64319.600 |
45834.000 |
|
(b) Inventories |
|
77026.100 |
77428.600 |
|
(c) Trade receivables |
|
15150.400 |
14274.500 |
|
(d) Cash and cash
equivalents |
|
14978.200 |
7223.000 |
|
(e) Short-term loans and
advances |
|
22724.200 |
16476.500 |
|
(f) Other current assets |
|
7301.800 |
3557.800 |
|
Total Current Assets |
|
201500.300 |
164794.400 |
|
|
|
|
|
|
TOTAL |
|
666185.600 |
556476.200 |
|
SOURCES OF FUNDS |
|
|
31.03.2011 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
|
|
1914.600 |
|
|
2] Money Received Against Share Warrants |
|
|
0.000 |
|
|
3] Reserves & Surplus |
|
|
295086.400 |
|
|
4] (Accumulated Losses) |
|
|
0.000 |
|
|
5] Employee Stock Exchange |
|
|
0.000 |
|
|
NETWORTH |
|
|
297001.000 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
|
|
51703.100 |
|
|
2] Unsecured Loans |
|
|
38675.800 |
|
|
TOTAL BORROWING |
|
|
90378.900 |
|
|
DEFERRED TAX LIABILITIES |
|
|
12874.900 |
|
|
|
|
|
|
|
|
TOTAL |
|
|
400254.800 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
FIXED ASSETS [Net Block] |
|
|
75843.800 |
|
|
Capital work-in-progress |
|
|
60304.100 |
|
|
|
|
|
|
|
|
INVESTMENT |
|
|
182467.500 |
|
|
DEFERREX TAX ASSETS |
|
|
0.000 |
|
|
Other Non Current Assets |
|
|
1.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
|
|
76514.000
|
|
|
Sundry Debtors |
|
|
12554.900
|
|
|
Cash & Bank Balances |
|
|
2333.900
|
|
|
Other Current Assets |
|
|
2470.800
|
|
|
Loans & Advances |
|
|
52873.400
|
|
Total
Current Assets |
|
|
146747.000 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
|
|
40829.500
|
|
|
Other Current Liabilities |
|
|
13444.100
|
|
|
Provisions |
|
|
10835.000
|
|
Total
Current Liabilities |
|
|
65108.600 |
|
|
Net Current Assets |
|
|
81638.400
|
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
|
|
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
|
|
400254.800 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
260569.300 |
265967.800 |
238592.100 |
|
|
|
Other Income |
9830.900 |
6157.900 |
3474.900 |
|
|
|
TOTAL (A) |
270400.200 |
272125.700 |
242067.000 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Purchases of Stock-in-Trade |
3.800 |
2059.800 |
5222.200 |
|
|
|
Cost of Raw Materials Consumed |
171365.100 |
178430.800 |
155309.400 |
|
|
|
Changes in Inventories |
1279.400 |
(4073.100) |
(3946.700) |
|
|
|
Employee Benefits Expenses |
12008.000 |
11133.500 |
10403.900 |
|
|
|
Power and Fuel |
30730.400 |
28706.700 |
22214.800 |
|
|
|
Impairment Loss/(Reversal) (Net) |
172.500 |
0.000 |
0.000 |
|
|
|
Other Expenses |
23145.400 |
18662.500 |
17841.600 |
|
|
|
TOTAL (B) |
238704.600 |
234920.200 |
207045.200 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
31695.600 |
37205.500 |
35021.800 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
4359.800 |
2936.300 |
2199.600 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
27335.800 |
34269.200 |
32822.200 |
|
|
|
|
|
|
|
|
|
Less |
DEPRECIATION/
AMORTISATION (F) |
6869.500 |
6899.700 |
6874.800 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
20466.300 |
27369.500 |
25947.400 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
3474.300 |
4997.500 |
4578.200 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
16992.000 |
22372.000 |
21369.200 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
4000.000 |
3500.000 |
3000.000 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Debenture Redemption Reserve |
1500.000 |
0.000 |
0.000 |
|
|
|
Transfer to General Reserve |
8994.800 |
18520.300 |
17531.600 |
|
|
|
Proposed Dividend on Equity Shares |
2680.500 |
2967.600 |
2871.700 |
|
|
|
Tax on Proposed Dividend |
316.700 |
384.100 |
465.900 |
|
|
BALANCE CARRIED
TO THE B/S |
7500.000 |
4000.000 |
3500.000 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Commission Earnings |
75715.500 |
78566.000 |
70960.000 |
|
|
|
Other Income |
7.500 |
0.400 |
11.400 |
|
|
TOTAL EARNINGS |
75723.000 |
78566.400 |
70971.400 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
160752.500 |
150812.900 |
143931.800 |
|
|
|
Coal and Fuel |
4011.900 |
2590.300 |
1787.600 |
|
|
|
Stores and Spares |
724.300 |
896.200 |
490.200 |
|
|
|
Capital Goods |
17738.300 |
13002.500 |
9006.200 |
|
|
|
Trading Goods |
0.000 |
2047.000 |
3966.400 |
|
|
TOTAL IMPORTS |
183227.000 |
169348.900 |
159182.200 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
|
|
|
|
|
|
Basic |
8.88 |
11.69 |
11.17 |
|
|
|
Diluted |
8.87 |
11.68 |
NA |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
PAT / Total Income |
(%) |
6.28
|
8.22 |
8.83 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
7.85
|
10.29 |
10.88 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
7.51
|
11.58 |
11.66 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.06
|
0.09 |
0.09 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt /Networth) |
|
0.71
|
0.45 |
0.30 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
2.07
|
1.64 |
2.25 |
FINANCIAL ANALYSIS
[all figures are
in Rupees Millions]
DEBT EQUITY RATIO
|
Particular |
31.03.2011 |
31.03.2012 |
31.03.2013 |
|
|
Rs. In
Millions |
Rs. In
Millions |
Rs. In
Millions |
|
Share Capital |
1914.800 |
1914.800 |
1914.800 |
|
Reserves & Surplus |
312996.800 |
332396.000 |
312996.800 |
|
Net
worth |
314911.600 |
334310.800 |
314911.600 |
|
|
|
|
|
|
long-term borrowings |
111151.300 |
204430.500 |
111151.300 |
|
Short term borrowings |
34567.800 |
37017.200 |
34567.800 |
|
Total
borrowings |
145719.100 |
241447.700 |
145719.100 |
|
Debt/Equity
ratio |
0.463 |
0.722 |
0.463 |
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 |
238592.100 |
265967.800 |
260569.300 |
|
|
|
11.474 |
(2.030) |
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
|
238592.100 |
265967.800 |
260569.300 |
|
Profit |
21369.200 |
22372.000 |
16992.000 |
|
|
8.96% |
8.41% |
6.52% |
LOCAL AGENCY FURTHER INFORMATION
CURRENT MATURITY
OF LONG TERM DEBT:
(Rs. In Millions)
|
PARTICULARS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
Current maturity of long term debt |
3628.200 |
15.300 |
20.000 |
|
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 |
No |
|
10] |
Designation of contact
person |
No |
|
11] |
Turnover of firm for last
three years |
Yes |
|
12] |
Profitability for last
three years |
Yes |
|
13] |
Reasons for variation
<> 20% |
----------- |
|
14] |
Estimation for coming
financial year |
No |
|
15] |
Capital in the business |
Yes |
|
16] |
Details of sister
concerns |
Yes |
|
17] |
Major suppliers |
No |
|
18] |
Major customers |
No |
|
19] |
Payments terms |
No |
|
20] |
Export / Import details
(if applicable) |
No |
|
21] |
Market information |
---------- |
|
22] |
Litigations that the firm
/ promoter involved in |
Yes |
|
23] |
Banking Details |
Yes |
|
24] |
Banking facility details |
Yes |
|
25] |
Conduct of the banking
account |
---------- |
|
26] |
Buyer visit details |
---------- |
|
27] |
Financials, if provided |
Yes |
|
28] |
Incorporation details, if
applicable |
Yes |
|
29] |
Last accounts filed at
ROC |
Yes |
|
30] |
Major Shareholders, if
available |
Yes |
|
31] |
Date of Birth of
Proprietor/Partner/Director, if available |
Yes |
|
32] |
PAN of
Proprietor/Partner/Director, if available |
No |
|
33] |
Voter ID No of
Proprietor/Partner/Director, if available |
No |
|
34] |
External Agency Rating,
if available |
Yes |
LITIGATION DETAILS:
|
HIGH
COURT OF BOMBAY
|
BUSINESS OVERVIEW:
Financial Year 13 indeed was one of the toughest years for aluminium industry in many ways, especially for the Indian aluminium industry. Globally, aluminium
prices continued to remain depressed; overcapacity and inventory overhang added
to the weak sentiment for the commodities. If during the first half European
sovereign debt issue continued to haunt the commodities, in the second half, it
was the impending slowdown in China that put a lid on any price recovery. The
emerging markets that were the torch bearer of Global recovery post 2009 have
witnessed fluctuating fortunes and many have been plagued with issues arising
out of uncertainties around sustainability of growth, rising inflation and
political uncertainty. The emerging markets in the recent past have
underperformed developed markets. For the Indian producers the situation was
even more challenging. If declining GDP growth, slowdown in manufacturing
sector and power sector impacted the demand in a low pricing (LME) scenario,
the cost pressures continued, primarily driven by high energy prices. While the
prices of crude and its derivatives continued to remain high globally,
depreciating rupee resulted in an additional burden on the Indian consumers.
Coal prices continued to increase in India, even as the Global coal prices
cooled off.
Against this external backdrop, The Company also witnessed several
one-off adversities that tested the mettle of the Company. Renukoot
and Hirakud smelters experienced production outages
due to varied reasons, Muri faced an unprecedented
water scarcity, Dahej copper smelter had to undertake
an extended shutdown, Novelis lost production in the
3rd quarter due to the issues experienced during the roll out of new ERP at two
units.
Despite all this, the Company has managed to deliver a solid
performance.
BUSINESS
HIGHLIGHTS:
·
FY 13 was a major stepping stone in subject long term
strategic path. The year brought subject on the verge of commissioning of its
Greenfield projects. These projects would redefine and enhance the cost
competitiveness which will ensure the business' long term sustainability. Utkal and Mahan have achieved significant milestones and
commissioning activities have started at these two projects.
·
A unique strategy to catapult Indian aluminium market to the next level is put in place and soon
Hindalco shall be producing can body stock and ultra
thin gauge foils from the facilities in Hirakud and Mouda respectively. This downstream strategy would not only
enhance the product portfolio but is also expected to re-define the aluminium usage in India.
·
Significant capex was also
incurred in Novelis to capture the growth in other
emerging markets and product portfolios across the globe. This will ensure the
Company's global leadership in FRP (flat rolled products) space and enhance the
profitability.
·
Novelis has also made significant
strides to strengthen its recycling capabilities which will help improve the
cost structure and enhance competitiveness and profitability.
·
Hindalco's consolidated revenue stood
at Rs.801930 Millions as compared with Rs.808210 Millions in FY 12.
·
Profit before depreciation, interest and taxes stood
at Rs.88490 Millions as compared with Rs.89670 Millions in FY12. This was a
solid performance against the backdrop of various setbacks and macroeconomic
challenges.
·
Net profit attributable to the shareholders for the
year stood at Rs.30270 Millions as compared with Rs.33970 Millions in FY 12.
·
The decline in profit is primarily due to lower aluminium LME realisations,
sustained cost pressures, certain one offs that afflicted both Hindalco and Novelis and weakness
in demand in certain global geographies following macroeconomic headwinds.
·
Of the total annual revenue of Rs.801930 Millions, Aluminium Business contributed Rs.621910 Millions, vs.
Rs.620590 Millions in the last year. Aluminium EBIT
for FY13 was Rs.43880 Millions -broadly at FY12 levels.
·
Copper business delivered a creditable performance
against the backdrop of adverse macroeconomic conditions and one timers. This
performance was achieved on the back of strong operating efficiencies, enhanced
product mix, and focused value creation through waste-to-wealth initiatives and
higher co-product margins.
·
Copper revenue at Rs.175180 Millions, was lower than
Rs.183640 Millions generated in FY12. This decline was mainly on account of
lower realisation resulting from lower LME. The
copper EBIT for the year was Rs.7400 Millions as compared with Rs.11190
Millions in FY 12.
·
The Company continued with further financing
initiatives to progress on the charted growth path.
Ø
The Company achieved the financial closure of Aditya aluminium project this
year. A common rupee loan agreement for Rs.98960 Millions was signed by the
Company on 17th September, 2012 with a group of 28 banks/financial
institutions.
Ø
The Company raised Rs.60000 Millions through secured
non convertible debentures, the single largest issuance by a private corporate
in India in recent times at a very attractive pricing in a deal that was widely
termed as market reviving deal. These debentures are listed on the wholesale
debt market segment of National Stock Exchange.
Ø
As a part of the overall financial closure for the
project, The Company raised USD 100 million finance from Export Development
Canada for its Mahan Aluminium Project.
BUSINESS
PERFORMANCE REVIEW:
Aluminium Business
Industry Review
Global economy has been trudging along in the last one year in view of
several macro economic uncertainities and risks. Some
of the impending risks such as the Euro region break up and sharp US
contraction seem to have been averted for now. Encouraging growth in the US and
liquidity boosting policies by certain central banks have enabled the global
economy to grow around 3.2% in 2012.
However, commodities are still languishing given the declining growth in
China that hit a 13 year low, slowdown in Europe and lacklustre
growth in other emerging markets.
The fact that commodity prices are ruled by sentiments more than pure
demand - supply dynamics, in an era where commodities have evolved as an
important asset class, too had a major bearing on the commodity prices.
Repeated episodes of global risk aversion and relatively high energy
costs cast a shadow on the metals and mining businesses. Many Mergers &
Acquisitions went sour as global players found it difficult to cope with the
challenging macroeconomic environment. In 2012 itself the write downs on
acquisitions exceeded USD 50 Bn. In India, the growth
rate slowed down as rising inflation and widening current account deficit
constrained the monetary policy. Uncertain regulatory environment too impacted
the growth as investment appetite declined.
OPERATIONAL
REVIEW:
Against this backdrop, The Company’s aluminium
business had an operational performance that was truly creditable and indeed
superior to most global peers.
OUTLOOK:
Global economic conditions have somewhat improved during the past six
months. The Policymakers in developed countries have defused two of the biggest
short-term risks to global activity at least for the moment - the Threat of the
euro zone breakup and a sharp fiscal contraction in the United States.
Financial stability has improved, according to the IMF’s
latest World Economic Outlook (WEO). The report forecasts real global GDP growth
of 3.3% on an annual average basis in 2013.
Long term outlook for aluminium continues to
remain strong with Global aluminium demand expected
to increase at a CAGR of 6% over next five years. China will continue to be the
torchbearer of this demand increase, with expected growth of 9% till 2020,
taking its consumption to almost 37 Mn tonnes. This growth rate, though strong, pales in
comparison with the stupendous rate at which Chinese aluminium
consumption has grown over the last decade. Infrastructure investment,
especially power sector is expected to lead the growth as China rebalances its
economy and increases its thrust on domestic consumption.
Other emerging markets too are expected to grow strongly, with Indian
demand growth expected to be in double digits. The Indian aluminium
consumption prospects remain strong with an expected demand pull from the power
sector. India’s demand for housing, retail and office space is expected to rise
rapidly as the urbanisation
ratio is set to increase from 31% in 2011 to 40% by 2030 with an estimated 610
million people living in the cities by 2030.
In the developed world, the demand will mostly continue to be consumer
driven. US demand is expected to be robust over the short term with auto sector
growing strongly and some recovery seen in the housing and construction
sectors. The transportation sector is expected to display the strongest growth,
driven by higher vehicle production and increased substitution of steel by aluminium as vehicle lightweighting
gathers pace. This will lead to higher demand for auto body sheet throughout
the forecast period.
The outlook for Europe is again not too bright having been plagued with
several macro-economic issues. In the mature Japanese market, demand will
remain relatively static, but the falling Yen should help keep Japanese
manufacturing exports competitive.
The supply is expected to remain strong as several producers continued
to produce despite low LME. High physical premiums too worked as an incentive
to continue production. Global Aluminium production
is expected to grow at a rate matching the demand growth overe
the next five years. Bulkof production increase will
come from China and Middle East. Production from both these regions is expected
to grow at around 8-9%.
In the recent past, there have been some capacity curtailments but
overall production continued to increase, especially in China. New Chinese
capacities in the North West/Western China are expected to come on stream over
next few years.
An
estimated 10 Mn tonnes
capacity is getting added in interior China while some of the high cost
capacities in the eastern China are expected to close down. While many of these
closures are logical, the timing is uncertain due to subsidies from provincial
government. In China, smelters will be challenged by the issues in sourcing
alumina / bauxite, especially considering the recent restrictions on bauxite
export from Indonesia and logistic challenges/cost inflation in
transportation of bauxite/alumina to the interior China.
BUSINESS OUTLOOK:
Over the years, The Company has successfully
demonstrated benefits of an integrated approach with low cost upstream
operations and significant abilities and reach in the downstream business. The robustness
of Novelis' de-risked business model and focused
approach to leverage the dominance in its chosen product segments has yielded
desired outcome in challenging times.
Hindalco's aggressive Greenfield
expansion programme is on the verge of delivering,
despite tough ground conditions at its project locations. Once these projects stabilise fully, they will ensure long term sustainability
of the Company built on a sound strategy; thus yielding superior returns and
value addition.
GREENFIELD PROJECTS:
Greenfield Projects have made significant progress during the year. These projects, with their vertical integration and logistical advantages, shall enhance the cost competitiveness of aluminium business and will establish it as the 'Last Man Standing'.
COPPER BUSINESS INDUSTRY REVIEW:
In 2012,world refined consumption was static at
19.7Mt. Refined consumption grew in Asia, Middle East, North America and Latin
America last year, but declined in Europe, Africa and Oceania. The main reason
for stagnation in 2012 was a 2.2% year-on-year fall in consumption in the
second quarter, which is usually the strongest in the year, as growth slowed
abruptly in China. Despite this sharp slowdown in 2012, Chinese demand
increased at around 5%, accounting for around 42% of Global copper demand.
In the USA financial fears had weighed
on demand in the latter part of 2012, although 2013 seems to have started on a
firmer footing. Continued improvement in key end use sectors is also expected
to propel demand through the balance of the year. The construction market has
been a focus of attention for some time following stellar growth in housing
starts and this now seems to be feeding through into consumption of cathode.
European consumption declined by almost 7% as
industrial growth dropped sharply amidst the fears of Euro breakdown. The
demand in Japan, the other large consumer, remained stagnant.
BUSINESS PERFORMANCE:
Copper business got impacted due to plant shutdowns in
the first half that resulted in decline in production. The output for the year
at 314 KT was 5% lower than the previous year. Despite this, the endeavour to maximise VAP
production resulted in higher volumes of CCR. The TC/RC for the year was
marginally better, though co-product prices were significantly lower as
industrial growth slowed down.
For custom smelters like The Company, copper prices
are just a pass through and the margins are largely determined by TC/RC and
other value drivers, viz. co-products. This year, while higher TC/RC were
supportive, weak co-product prices and high input costs along with plant
shutdowns negated the impact of better TC/RC. With improved product and market
mix, and better operating efficiencies, copper business managed to deliver a
robust performance. The EBIT for the year stood at Rs.7680 Millions as compared
to Rs.8020 Millions in the previous year.
OUTLOOK:
In the short-term, the pace of copper supply growth
relative to demand is expected to keep the market in surplus till 2017.
Industry forecasts expect growth in refined copper consumption to be 4.9% in
2013, driven largely by China and North America. Smelter capacity is expected
to continue growing with a CAGR of 5.8% p.a. till 2016.
On account of the market surplus and risk averse macroeconomic
environment, copper prices are expected to remain subdued over next 1-2 years.
This may lead to delays and/or deferrals in those projects that are either in
construction or due to come on line over the coming years. Overall mine
production capacity is forecast to rise from 16.2Mt in 2011 to 21.3Mt by 2015,
an increase of 32%. Beyond 2015, mine production may be subdued due to reserve
depletion.
Long term TC/RC for 2013 is around 10% better than in
2012. However, spot TC/RC are expected to remain volatile depending on the news
flow.
Copper demand globally is expected to be little
subdued and so are the prices. Over the period 2016 to 2018, projected deficits
as a result of the slower pace of production growth should see prices recovering.
However, The Company's business which is predominantly
converter business is largely insulated from copper prices. Better TC/RC due to
surplus of mine metal, recovery in the Indian economy and manufacturing sector
augurs well for the business. A weak rupee will also support the performance.
FINANCIAL REVIEW & ANALYSIS:
·
Hindalco's consolidated revenue stood
at Rs.801930 Millions as compared with Rs.808210 Millions in FY 12. Profit
before depreciation, interest and taxes stood at Rs.88490 Millions as compared
with Rs.89670 Millions in FY12. This decline was only marginal against the
backdrop of significant challenges faced by The company such as lower aluminium LME realisations,
strong cost pressures, certain one offs that afflicted both Hindalco
and Novelis; and weakness in demand in certain
geographies following macroeconomic headwinds.
· Standalone revenue for the year was stable at Rs.260570 Millions. Profit before interest and depreciation was Rs.31870 Millions vs. Rs.37210 Millions in FY12.
INDEX OF CHARGE:
|
Sr. No. |
Charge ID |
Date of Charge
Creation/Modification |
Charge amount
secured |
Charge Holder |
Address |
Service Request
Number (SRN) |
|
1 |
10435421 |
25/06/2013 |
15,000,000,000.00 |
SBICAP
TRUSTEE COMPANY LIMITED |
202
MAKER TOWER "E" CUFFE PARADE, COLABA, MUMBAI – 400 005, |
B79008140 |
|
2 |
10390692 |
07/12/2012 |
5,500,000,000.00 |
SBICAP
TRUSTEE COMPANY LIMITED |
202,
MAKER TOWER, E CUFFE PARADE, COLABA, MUMBAI – 400 005, |
B63619084 |
|
3 |
10390853 |
23/11/2012 |
98,960,000,000.00 |
IDBI
TRUSTEESHIP SERVICES LIMITED |
ASIAN
BUILDING,GROUND FLOOR, 17, R.K. KAMANI MARG |
B63687578 |
|
4 |
10376091 |
14/05/2013
* |
15,000,000,000.00 |
IDBI
TRUSTEESHIP SERVICES LIMITED |
ASIAN
BUILDING, GROUND FLOOR, 17, R.KAMANI MARG, BALLARD ESTATE, MUMBAI – 400 001,
MAHARASHTRA, INDIA |
B78583887 |
|
5 |
10372704 |
14/05/2013
* |
15,000,000,000.00 |
IDBI
TRUSTEESHIP SERVICES LIMITED |
ASIAN
BUILDING, GROUND FLOOR, 17, R.KAMANI MARG, BALLARD ESTATE, MUMBAI – 400 001,
MAHARASHTRA, INDIA |
B78582681 |
|
6 |
10360308 |
14/05/2013
* |
30,000,000,000.00 |
IDBI
TRUSTEESHIP SERVICES LIMITED |
ASIAN
BUILDING, GROUND FLOOR, 17, R.KAMANI MARG, BALLARD ESTATE, MUMBAI – 400 001,
MAHARASHTRA, INDIA |
B78581881 |
|
7 |
10296689 |
08/11/2012
* |
78,750,000,000.00 |
SBICAP
TRUSTEE COMPANY LIMITED |
202,
MAKER TOWER, 'E' CUFFE PARADE, COLABA, MUMBAI – 400 005, MAHARASHTRA, INDIA |
B62557798 |
|
8 |
80059220 |
09/12/2004 |
1,000,000,000.00 |
Bank
of Maharashtra |
LOK
MANGAL, 1501, SHIVAJI NAGAR, PUNE – 411 005, MAHARASHTRA, INDIA |
- |
|
9 |
90218583 |
30/09/2004 |
4,900,000,000.00 |
STATE
BANK OF INDIA |
CORPORATE
ACCOUNTS GROUPS BRANCH, VOLTAS HOUSE, 2 3, J. N. HERDIA MARG, BALLARD ESTAT,
MUMBAI – 400 001, MAHARASHTRA, INDIA |
- |
|
10 |
90218478 |
24/12/2003
* |
1,000,000,000.00 |
STATE
BANK OF INDIA |
SECURITIES
AND SERVICES DIVISION, MUMJBAI MAIN BRANCH, STATE BANK BUILDING, MUMBAI
SAMACHAR MARG, BOMBAY – 400 023, MAHARASHTRA, INDIA |
- |
* Date of charge modification
FIXED ASSETS:
·
Mining Rights
·
Leasehold Land
·
Freehold Land
·
Buildings
·
Plant and Machinery
·
Vehicles and Aircraft
·
Furniture and Fittings
·
Railway Sidings
·
Live Stock
·
Computer Software
·
Technological Licenses
STATEMENT OF STANDALONE UNAUDITEDRESULTS FOR THE YEAR ENDED
31.03.2014
(Rs. In Millions)
|
|
Quarter Ended |
Year ended |
|
|
31.03.2014 (Unaudited) |
31.12.2013 (Unaudited) |
31.03.2014 (Audited) |
|
|
1.
Income from operations |
84350.600 |
72730.900 |
278509.300 |
|
a) Net sales/ Income from operation (net of excise duty) |
83598.500 |
72009.600 |
275730.600 |
|
b) Other operating income |
752.100 |
721.300 |
2778.700 |
|
Total
income from Operations(net) |
78350.100 |
68434.100 |
261823.400 |
|
2.Expenditure |
|
|
|
|
a) Cost of material consumed |
54430.000 |
53250.800 |
188042.800 |
|
b) Purchases of stock in trade |
0.000 |
0.000 |
0.300 |
|
c) Changes in inventories of finished goods,
work-in-progress and stock-in-trade |
1549.500 |
(4728.500) |
(6762.100) |
|
d) Employees benefit expenses |
3504.800 |
3323.700 |
13461.000 |
|
e) Power and fuel |
9205.900 |
9486.400 |
35576.100 |
|
f) Depreciation and amortization expenses |
2440.600 |
1998.000 |
8232.900 |
|
g) Other expenditure |
7219.300 |
5103.700 |
23272.400 |
|
3. Profit from operations before other income and
financial costs |
6000.500 |
4296.800 |
16685.900 |
|
4. Other income |
2124.700 |
2041.900 |
11244.200 |
|
5. Profit from ordinary activities before finance costs |
8125.200 |
6338.700 |
27930.100 |
|
6. Finance costs |
2146.000 |
1651.600 |
7116.500 |
|
7. Profit before exceptional Items and Tax |
5979.200 |
4687.100 |
20813.600 |
|
6. Exceptional Items |
3959.800 |
0.000 |
3959.800 |
|
9. Profit before tax |
2019.400 |
4687.100 |
16853.800 |
|
10.Tax expenses |
(462.100) |
1347.300 |
720.500 |
|
11.Net
Profit for the Period |
2481.500 |
3339.800 |
14133.300 |
|
14.Paid-up
equity share capital (Nominal value Re. 1/- per share) |
2064.800 |
2064.800 |
2064.800 |
|
ii) Earnings per share (after extraordinary items) |
|
|
|
|
(a) Basic and diluted |
1.20 |
1.62 |
7.09 |
|
|
|
|
|
|
Debt Service Coverage Ratio
(DSCR) |
3.34 |
||
|
Interest Service Coverage
Ratio (ISCR) |
5.08 |
||
|
A. Particulars of shareholding |
|
|
|
|
1. Public Shareholding |
|
|
|
|
- Number of shares |
1138652679 |
1138995331 |
1138652679 |
|
- Percentage of shareholding |
55.15% |
55.17% |
55.15% |
|
2. Promoters and Promoters group Shareholding- |
|
|
|
|
a) Pledged /Encumbered |
|
|
|
|
Number of shares |
- |
- |
- |
|
Percentage of shares (as a % of total shareholding of the
promoter and promoter group) |
- |
- |
- |
|
Percentage of shares (as a % of total share capital of the
company) |
- |
- |
- |
|
|
|
|
|
|
b) Non Encumbered |
|
|
|
|
Number of shares |
763797188 |
763797188 |
769797188 |
|
Percentage of shares (as a % of total shareholding of the
promoter and promoter group) |
100.00% |
100.00% |
100.00% |
|
Percentage of shares (as a % of total share capital of the
company) |
37.00% |
37.00% |
37.00% |
|
*Excludes shares represebted by
Global Depository Receipts. |
|
|
|
|
B.
Investor Complaints |
|
|
Pending at the beginning of the quarter |
1 |
|
Receiving during the quarter |
5 |
|
Disposed of during the quarter |
6 |
|
Remaining unreserved at the end of the quarter |
Nil |
UNAUDITED SEGMENT WIE REVENUE, RESULTS AND CAPITAL EMPLOYED
(Rs. In Millions)
|
Particulars |
31.03.2014 (Unaudited) |
31.12.2013 (Unaudited) |
31.03.2014 (Audited) |
|
|
|
|
|
|
1.
Segment Revenue |
|
|
|
|
a. Aluminium |
30246.300 |
24712.600 |
100496.900 |
|
b. Copper |
54217.400 |
48167.100 |
178482.200 |
|
Total |
84463.700 |
72879.700 |
278979.100 |
|
Less : Inter Segment Revenue |
(113.100) |
(148.800) |
(469.800) |
|
Net Sales |
84350.600 |
72730.900 |
278509.300 |
|
|
|
|
|
|
2.
Segment Result |
|
|
|
|
a. Aluminium |
3495.500 |
1695.800 |
9342.700 |
|
b. Copper |
3184.400 |
2998.800 |
9384.200 |
|
Total |
6679.900 |
4694.600 |
18726.900 |
|
Less
: Finance Costs |
(2146.000) |
(1651.600) |
(7116.500) |
|
|
4533.900 |
3043.000 |
11610.400 |
|
Add : Other unallocated Income of
unallocated Expenses |
1445.300 |
1644.100 |
9203.200 |
|
Profit
before Exceptional Items and Tax |
5979.200 |
4687.100 |
20813.600 |
|
Exceptional
Items |
(3959.800) |
0.000 |
(3959.800) |
|
Profit
before Tax |
2019.400 |
4687.100 |
16853.800 |
|
3.
Capital Employed |
|
|
|
|
a. Aluminium |
362189.400 |
356247.500 |
362189.400 |
|
b. Copper |
55655.000 |
59911.600 |
55655.000 |
|
|
417844.400 |
416159.100 |
417844.400 |
|
Unallocated/ Corporate |
231419.100 |
234603.900 |
231419.100 |
|
Total
Capital Employed |
649263.500 |
650763.000 |
649263.500 |
STANDALONE STATEMENT OF ASSETS AND
LIABILITIES
(Rs. In Millions)
|
SOURCES OF FUNDS |
31.03.2014 (Unaudited) |
|
I.
EQUITY
AND LIABILITIES |
|
|
(1)Shareholders' Funds |
|
|
(a) Share Capital |
2064.800 |
|
(b) Reserves & Surplus |
365259.700 |
|
Total
Shareholders’ Funds |
367324.500 |
|
|
|
|
(2)
Non-Current Liabilities |
|
|
(a) long-term borrowings |
221085.800 |
|
(b) Deferred tax liabilities (Net) |
11743.100 |
|
(c) Other long term liabilities |
8308.600 |
|
(d) long-term provisions |
3419.600 |
|
Total Non-current Liabilities (3) |
244557.100 |
|
|
|
|
(3) Current Liabilities |
|
|
(a) Short term borrowings |
42583.700 |
|
(b) Trade payables |
43837.500 |
|
(c) Other current
liabilities |
29019.100 |
|
(d) Short-term provisions |
10377.600 |
|
Total Current Liabilities (4) |
125817.900 |
|
|
|
|
TOTAL |
737699.500 |
|
|
|
|
II.
ASSETS |
|
|
(1) Non-current assets |
|
|
(a) Fixed Assets |
353319.400 |
|
(b) Non-current Investments |
153124.500 |
|
(c) Deferred tax assets (net) |
0.000 |
|
(d) Long-term Loan and Advances |
11611.500 |
|
(e) Other Non-current assets |
125.200 |
|
Total Non-Current Assets |
518180.600 |
|
|
|
|
(2) Current assets |
|
|
(a) Current investments |
65950.100 |
|
(b) Inventories |
89145.800 |
|
(c) Trade receivables |
12836.500 |
|
(d) Cash and cash
equivalents |
11631.700 |
|
(e) Short-term loans and
advances |
32264.000 |
|
(f) Other current assets |
7690.800 |
|
Total Current Assets |
219518.900 |
|
|
|
|
TOTAL |
737699.500 |
NOTES:
1.
Exceptional Items
include:
a. Liability of Rs.
3240.000 Millions under UP Tax on Entry of Goods into Local Areas Act, 2007 (UP
Entry Tax)
b. Liability of Rs.
720.000 Millions under Madhya Pradesh Gramin Avsanrachna Tatha Sarak Vikas Adhiniyam(MPGATSVA)
Both the above levies have been contested by the
Company and appeals against these are pending before the Hon’ble
Supreme Court. In the matter of UP Entry Tax, the Hon’ble
Supreme Court has granted a stay on the adverse order of the Hon’ble Allahabad High Court. In the matter of MPGATSVA,
the Supreme Court has not stayed the adverse order of the Hon’ble
Jabalpur High Court in a separate but similar case.
Since in both these matters an adverse order has been passed by a High Court
upholding the validity of the levy and the amount of the levy has either been
paid or secured by bank guarantees provided by the Company, the Statement of
Profit and Loss has been debited with the total amount pertaining to these
levies following principles of prudence. The amount paid towards these levies
has been shown as advance recoverable in the balance sheet.
2. Both the greenfield projects of the
Company viz. Aditya Aluminium
and Mahan Aluminium, as well as the greenfield project of its wholly-owned subsidiary company, Utkal Alumina International Limited have started operations
during the year and are in the process of ramping up.
3. A provision of Rs. 86 crore has been made for diminution in value of investment
of the Company in Hindalco - Almex
Aerospace Limited. The entire amount of provision has been adjusted against
Business Reconstruction Reserve (BRR) as enjoined in the scheme of financial
restructuring approved by the Hon’ble High Court of
Bombay (the Scheme) under Sections 391 to 394 of the Companies Act, 1956 during
the year 2008-09.
4. Had the Scheme not prescribed aforesaid treatment, the impact
on standalone would have been as under:
i. Net Profit lower by Rs.
860.000 Millions
ii. Basic and Diluted Earnings per Share (EPS)
lower by Rs. 0.43.
This adjustment
has, however, no impact on consolidated profit of the Company.
5. In accordance with the accounting policy for accounting of
actuarial gains or losses relating to pension and other post retirement employee
benefit plans of Novelis Inc., the Group has recognised actuarial gains / losses (net of deferred tax)
in the Actuarial Gain / (Loss) Reserve' under Reserves and Surplus in its
Consolidated Financial Statements. Had the Group followed the practice of
recognition of actuarial gains / losses on the aforesaid defined benefit plans
in the Statement of Profit and Loss, Employee Benefits Expenses would have been
lower by Rs. 1420.000 Millions (previous year higher
by Rs. 5420.000 Millions), Tax Expenses (Deferred
Tax) would have been higher by Rs. 77 crore (previous year lower by Rs.
1590.000 Millions), Net Profit for the year would have been higher by Rs. 650.000 Millions (previous year lower by Rs. 3830.000 Millions).
6. The Board of Directors of the Company have recommended
dividend of Rs. 1.00 per share aggregating to Rs. 2420.000 Millions (including dividend distribution tax
of Rs. 350.000 Millions) for the year ended March 31,
2014.
7. The figures of the quarter ended March 31, 2014 are balancing
figures between audited figures in respect of the full financial year and the
published year to date figures up to the third quarter of the relevant
financial year.
8. The consolidated financial results comprise the performance
of the Company, its subsidiaries as also share in joint ventures and
associates. The consolidated financial results are based on the consolidated
financial statements prepared in conformity with Companies (Accounting
Standard) Rules, 2006 and other applicable accounting practices.
9. Both the standalone and consolidated financial results of the
Company have been approved by Audit Committee and Board of Directors in the
meetings held on May 29, 2014.
10. Figures of previous periods have been regrouped wherever
necessary.
PRESS RELEASE
HINDALCO
ANNOUNCES STANDALONE AND CONSOLIDATED AUDITED RESULTS FOR YEAR ENDED 31 MARCH
2014
29 May 2014
·
Highest ever quarterly and annual sales of aluminium metal in Q4'14 and FY14 respectively
·
All three greenfield
projects viz. Mahan, Aditya and Utkal
have become operational and are ramping up
·
PBITDA for Q4'14 higher by 27 per cent
sequentially
Financial
highlights
|
PARTICULARS |
STANDALONE |
CONSOLIDATED |
|||||
|
(In Rs. Millions) |
Q4FY14 |
Q3FY14 |
Q4FY13 |
FY14 |
FY13 |
FY14 |
FY13 |
|
Revenue from
Operations |
8,4350.000 |
7,2730.000 |
6,9940.000 |
27,8510.000 |
26,0570.000 |
87,6950.000 |
80,1930.000 |
|
Other income |
2120.000 |
2040.000 |
2310.000 |
1,1240.000 |
9830.000 |
1,0170.000 |
1,0120.000 |
|
PBITDA |
1,0570.000 |
8340.000 |
8740.000 |
3,6160.000 |
3,1870.000 |
9,3030.000 |
8,8490.000 |
|
Depreciation |
2440.000 |
2000.000 |
1730.000 |
8230.000 |
7040.000 |
3,5530.000 |
2,8610.000 |
|
Finance Costs |
2150.000 |
1650.000 |
1580.000 |
7120.000 |
4360.000 |
2,7020.000 |
2,0790.000 |
|
Profit before
exceptional item and tax |
5980.000 |
4690.000 |
5440.000 |
2,0810.000 |
2,0470.000 |
3,0490.000 |
3,9090.000 |
|
Exceptional Item |
3960.000 |
- |
- |
3960.000 |
- |
3960.000 |
- |
|
Profit after
Exceptional Item |
2020.000 |
4690.000 |
5440.000 |
1,6850.000 |
2,0470.000 |
2,6530.000 |
3,9090.000 |
|
Tax Expenses |
(460.000) |
1350.000 |
620.000 |
2720.000 |
3470.000 |
5250.000 |
8860.000 |
|
Profit before
minority Interest and Share in Associates |
2480.000 |
3340.000 |
4820.000 |
1,4130.000 |
1,6990.000 |
2,1280.000 |
3,0230.000 |
|
Minority interest |
- |
- |
- |
- |
- |
200.000 |
(200.000) |
|
Share in Profit/(loss) of
Associates |
- |
- |
- |
- |
- |
670.000 |
(160.000) |
|
Net Profit |
2480.000 |
3340.000 |
4820.000 |
1,4130.000 |
1,6990.000 |
2,1750.000 |
3,0270.000 |
|
Basic EPS
(not Annualised) |
1.20 |
1.62 |
2.52 |
7.09 |
8.88 |
10.91 |
15.81 |
|
Note: Certain
descriptions and/or figures of earlier periods have been changed/regrouped to
conform to current practices |
|||||||
Hindalco Industries Limited, the flagship
company of the Aditya Birla
Group, today announced its standalone as well as consolidated audited financial
results for the year ended 31 March 2014.
Standalone results
Quarterly results: Net sales in Q4FY14 were up 16 per
cent over Q3FY14 mainly on the back of the highest ever aluminium
sales volume and higher copper sales tonnage in its copper business. Profit
before Interest and Depreciation increased by 27 per cent over Q3FY14.
Other income was at Q3FY14 levels. However with capitalisation of some assets at Mahan Aluminium
and Aditya Aluminium
projects, depreciation and interest charge increased by around Rs. 100 crore in Q4FY14 vs.
Q3FY14.
An exceptional item of Rs.396 crore
relates to a liability of Rs.324 crore under the UP
Tax on Entry of Goods into Local Areas Act, 2007 (UP Entry Tax) and a liability
of Rs.72 crore under the Madhya Pradesh Gramin Avsanrachna Tatha Sarak Vikas
Adhiniyam (MPGATSVA). Both these levies have been
contested by the company and appeals against these are pending before the Hon’ble Supreme Court.
Profit before exceptional item and tax is higher by 28 per
cent over Q3FY14. Net profit after tax at Rs.248 crore
is lower mainly on account of exceptional items.
Aluminium sales grew by 22 per cent compared
to Q3’14 on the back of higher volumes. The segment results before interest and
tax doubled to Rs.350 crore vis-à-vis Q3’14.
Aluminium production in Q4’14 at 175 Kt reflects
the ramping up of capacity at Mahan.
Copper sales and EBIT are up by 13 per cent and
6 per cent respectively.
Copper cathode production in Q4’14 at 96 Kt is higher than
that of Q3’14.
There has been an all-round improvement in performance in
volumes and results in both the businesses of the company.
Annual results
For the year ended 31 March 2014, net sales grew by 7 per
cent with profit before depreciation, interest and tax growth at 13 per cent.
Interest costs went up significantly consequent to higher borrowing and capitalisation of some assets at projects. Due to higher
interest cost and exceptional items, the net profit was lower at Rs.1,413 crore.
Consolidated results
The consolidated revenue as well as Profit before
Depreciation, Interest and Taxes extended by 9 per cent and 5 per cent
respectively in comparison to the last year’s corresponding figures.
Net profit was lower at Rs.2,1750.000 Millions, because of
higher interest and depreciation and exceptional items.
Novelis Inc (wholly owned subsidiary)
Shipments of flat rolled products increased from 2,786 kt in fiscal 2013 to 2,895 kt in
fiscal 2014. The recent rolling expansion in Pindamonhangaba
(Pinda) facility, coupled with the strong demand in
Brazil, contributed to the higher shipments and strong operating results in
South America.
Shipments were also up in Europe in fiscal 2014 compared to
fiscal 2013, driven by higher automotive and can product shipments. The recent
rolling expansion project in South Korea contributed to the higher shipment
levels in Asia region. Shipments in North America were down compared to the
prior year, as can product shipments were lower.
Under US GAAP, Novelis reported
"Net income" of $104 million for the year ended 31 March 2014,
compared to $203 million in the year ended 31 March 2013. Cash flow provided by
operating activities was $702 million compared to $203 million in the previous
year.
Aditya Birla
Minerals Limited (51 per cent subsidiary)
Aditya Birla
Minerals Limited, Australia reported a net loss of AUD 0.2 million in FY14
compared to loss of AUD 8.3 million in FY13. Mount Gordon mines operations is
currently placed under care and maintenance and various strategic options are
being evaluated including divestment. Nifty mines is currently under suspension
post development of a sink hole on 20 March 2014.
Dividend
The Board of Directors of the company have recommended
dividend of Re.1 per share aggregating to Rs.242 crore
(including dividend distribution tax of Rs.35 crore)
for the year ended 31 March 2014.
Projects
India
All the greenfield projects viz. Aditya
Aluminium and Mahan Aluminium
as well as Alumina Refinery under Utkal Alumina
International Ltd, a wholly owned subsidiary of the company, have commenced
operations. All these projects are ramping up their capacity utilisation.
Novelis
In July 2013, Novelis began the
commissioning phase of two automotive sheet finishing lines at Oswego, its New
York facility. The construction of new automotive sheet finishing plant in Changzhou, China is also on track.
In December 2013, Novelis
announced plans to further expand its global production of aluminium
automotive sheet products by building a third finishing line at its Oswego, New
York facility and a second finishing line at its Nachterstedt,
Germany facility. These projects are expected to begin commissioning in late
calendar year 2015. Each of these will add approximately 120 kt of auto-finishing capacity. With these expansions, the Novelis’ global automotive sheet capacity will rise to
approximately 900 kt per year.
HINDALCO ANNOUNCES Q3
FY2013-14 STANDALONE RESULTS [UNAUDITED]
13
February 2014
§
Highest
ever quarterly aluminium metal production
§
First
metal produced at Aditya smelter in January 2014
§
Financial
highlights (on sequential basis)
§
Revenues
up 15 per cent
§
PBITDA
(before non-recurring income) up 27 per cent
§
PBT up 6
per cent
Financials
|
(In Rs.
In Millions) |
Q3FY14 |
Q2FY14 |
Q3FY13 |
9M
FY14 |
9M
FY13 |
|
Revenue
from operations |
72730.000 |
63050.000
|
68720.000 |
194160.000
|
190630.000
|
|
EBITDA |
629.000
|
5400.000
|
5820.000 |
16480.000
|
15600.000
|
|
Other income |
2040.000
|
1190.000 |
1740.000
|
5480.000
|
4770.000 |
|
PBITDA
before non-recurring Income |
8340.000
|
6590.000 |
7560.000 |
21960.000
|
20380.000
|
|
Dividend from subs/one time
income |
- |
1610.000 |
1440.000 |
3640.000 |
2740.000 |
|
PBITDA |
8340.000 |
8200.000 |
9000.000 |
25600.000
|
23120.000
|
|
Depreciation |
2000.000 |
1960.000 |
1880.000 |
5790.000 |
5320.000
|
|
Finance costs |
1650.000
|
1830.000 |
1690.000 |
4970.000
|
2780.000 |
|
Profit
before tax |
4690.000
|
4400.000 |
5430.000 |
14830.000
|
15020.000
|
|
Tax expenses |
1350.000 |
830.000 |
1090.000
|
3180.000 |
2850.000 |
|
Net
profit |
3340.000 |
3570.000
|
4340.000 |
11650.000
|
121070.000 |
|
Basic
EPS (in Rupees) |
1.62
|
1.85
|
2.26
|
5.91
|
6.36
|
Note:
Certain descriptions and/or figures of earlier periods have been
changed/regrouped to conform to current practices
Mumbai: Hindalco, the flagship company of Aditya
Birla Group, today announced its unaudited
results for the quarter ended December 31, 2013.
Revenue from operations at
Rs.72730.000 Millions in Q3FY14 is up 15 per cent over Q2FY14, driven by higher
volume. Improved operating efficiencies cushioned the adverse impact of higher
input cost and lower realisation. Other income rose
on account of better yields from investment. Profit before tax went up by 6 per
cent to Rs.469 Millions vis-à-vis Rs.440 Millions in Q2FY14. Net profit has
been lower due to higher effective tax rate for the quarter.
The company’s greenfield projects are ramping up well. Mahan smelter
produced 18 Kt of aluminium metal and Utkal Alumina International Limited produced 87 Kt of
alumina in Q3FY14. The first metal has been produced at Aditya
smelter in January 2014.
Of the total revenues of
Rs.72730.000 Millions, Aluminium Business contributed
Rs.24710.000 Millions [vs. Rs.23430.000 Millions in Q2FY14] with an EBIT of
Rs.1700.000 [vs. Rs.166 Millions in Q2FY14]. Aluminium
sales were higher on the back of higher volume despite realisation
being lower. Quarterly aluminium production at 158 Kt
has been the highest ever.
In the Copper Business, revenues
were higher at Rs.48170.000 Millions up by 21 per cent from Rs.39740.000
Millions in Q2FY14, driven by higher copper LME and by-product realisation. Cathode production was 89 Kt during this
quarter (vs. 84 Kt in Q2FY14). The Copper Business delivered highest ever EBIT
of Rs.3000.000 Millions in this quarter.
ONE-TIME GAIN HELPS
HINDALCO POST 12% GROWTH IN Q1 PROFIT AT RS.4740 MILLIONS
The
Economic Times
14 August 2013
However, sales fell 3% to
Rs.57670 Millions on declining prices of copper and aluminium
Hindalco Industries on
Tuesday reported a 12% increase in quarterly net profit as a one-time gain
offset lower sales. India's biggest aluminium
producer posted a net profit of Rs.47410 Millions for the April-June quarter,
compared to a net profit of Rs.42480 Millions a year earlier. Sales fell 3% to
Rs.576670 Millions. The company, however, benefitted
from a 42% rise in non-operating income of Rs.42790 Millions, which included a
one-time gain of Rs.2030 Millions. Hindalco didn't
elaborate where the gain came from.
The company said it is "re-evaluating its investment
strategy" with respect to its proposed Aditya
Refinery and Jharkhand Aluminium
Projects in view of delays in getting various regulatory approvals and the
current uncertain economic environnment. The focus of
the company is now on ramping up of the new projects already on stream, the
company said.
Hindalco is confident of
ridding through these challenges with its thrust on stabilising
the projects, operational efficiencies and cost control.
"The sales were bound to fall because of declining
prices of copper and aluminium," said Giriraj Daga, an analyst with Nirmal Bang International Securities. He added that the
company would have benefitted from a weaker rupee.
Global prices of copper fell 6% in the April-June quarter, while those of aluminium fell 3%. The rupee fell 8.5% against the dollar
in April-June.
Daga said the company's sales will
improve in the subsequent quarters due to growing stability in metal prices.
But it would be impacted by depreciation costs from its new refineries at Utkal and Mahan. Hindalco's
earnings come a day after its unit Novelis reported
an 85% plunge in its net profit due to pricing headwinds and lower demand for
some of its products. Hindalco spent Rs.299350 Millionson raw materials during the quarter, down 18% on
year. Finance costs rose 83% to Rs.14870 Millions.
"The focus of the company is now on ramping up of the
new projects already on stream," the company said in a stateement.
"Depressed LME in an otherwise inflationary scenario poses a significant
challenge," it added. However, the company is confident of riding through
these challenges with its thrust on stabilising the
projects, operational efficiencies and cost control.
The Hindalco share ended marginally
lower by 2.45% or Rs.2.30 paise to Rs.91.45 a share
after the earning announcement on Tuesday.
The capital employed in the Aluminium
Business was Rs.330570 Millions as on June 30, 2013, after factoring around
Rs.238000 Millions relating to the investments in Mahan, Hirakud
FRP and Aditya Aluminium
Projects. During the quarter, the Utkal Refinery went
on stream and major equipment at Hirakud FRP plant
was also commissioned, the company said.
HINDALCO Q1 NET UP 12% AT RS.4740 MILLIONS
The
Financial Express
14 August 2013
Aditya Birla
Group flagship Hindalco on Tuesday reported a 11.53%
increase in its stand alone net profit to Rs.4740 Millions during the
April-June quarter. The company had posted a net profit of Rs
4250 Millions during the corresponding quarter last year.
Revenue from operations, however, dropped 3.15% to Rs.58380
Millions in the June quarter. Net sales of the company fell 3.31% to Rs.5766690
Millions during the June quarter, mainly due to an 8.46% decline in revenue
from the copper business (at Rs.3635770 Millions).
The company said revenue was impacted due to lower copper
production as one of its smelters went for a planned shutdown.
The revenue from the aluminium
business was, however, up 7.2 % at Rs.2211140 Millions. The company said the
total aluminium output for the quarter was 139 kilo tonne compared to 132 KT during Q1FY13.
“Q1FY14 performance was achieved despite adverse
macro-economic headwinds. The average aluminium LME
dropped around 7% from the levels seen in Q1FY13. This sharp fall was partially
cushioned by depreciating rupee," the company said.
Hindalco, which has spent
around $3 billion or Rs 150000 Millions, on expansion
projects at the Mahan Coal block, has already got stage-I clearance and is
currently awaiting the stage-II clearance which it expects to get by December
2013.
HINDALCO Q1 NET UP 12% AT RS.4740 MILLIONS
The Mint
14 August 2013
Mumbai: Hindalco Industries Ltd, the Aditya
Birla Group’s flagship company, reported a 11.6% rise
in fiscal’s first quarter net profit from a year
earlier and said that it was re-evaluating its investments in two projects as
demand for aluminium and copper remains bleak.
“Indian markets not only stagnated, coal prices also went up by 10% in May,” Debu Bhattacharya, managing director of Hindalco
and vice-chairman of Novelis Inc., the company’s US
unit, told reporters. “It is a double whammy.”
Stand-alone net profit rose to Rs.474.09 Millions in the three months ended 30
June from Rs.424770
HINDALCO INDUSTRIES
JUNE QUARTER NET PROFIT RISES 12% TO RS.4740 MILLIONS
Ruchira Singh, Madhura Karnik
The Mint
14 August 2013
Mumbai: Hindalco Industries Ltd, the Aditya Birla Group’s flagship
company, reported a 11.6% rise in fiscal’s first
quarter net profit from a year earlier and said that it was re-evaluating its
investments in two projects as demand for aluminium
and copper remains bleak.
“Indian markets not only stagnated, coal prices also went up
by 10% in May,” Debu Bhattacharya, managing director
of Hindalco and vice-chairman of Novelis
Inc., the company’s US unit, told reporters. “It is a double whammy.”
Stand-alone net profit rose to Rs.4740.900 Millions in the three months ended
30 June from Rs.4247.700 Millions in the same quarter a year ago, the company
said on Tuesday. Revenue from operations dropped 3.15% to Rs.58379.300 Millions
in the quarter.
A Bloomberg poll had pegged stand-alone net
profit at Rs.3216.000 Millions and sales at Rs.60317.000 Millions.
The company said it is re-evaluating its investment strategy with respect to
the proposed Aditya Refinery in Odisha
and the Jharkhand aluminium
project owing to delays in getting regulatory approvals and the uncertain
economic environment.
“We cannot invest in this kind of uncertainty and before we
put money on the ground, we must be clear,” Bhattacharya said, adding that the
review is under way and the company has no deadline for its completion.
He said Hindalco’s plan is to invest about Rs.150000
- Rs.160000 Millions in the projects.
Hindalco is India’s largest copper maker and
second largest aluminium producer in installed
capacity terms. Established in 1958, the company has grown through mergers and
acquisitions.
The company’s acquisition of Novelis
in 2007 put it among the world’s top aluminium
makers.
“Hindalco results missed (our)
estimates due to weaker copper margins and volume,” said Rakesh
Arora, managing director and head of research, India,
at Macquarie Capital Securities (India) Private. Ltd.
“FY14 remains a transition year for Hindalco
with new capacities getting commissioned; FY15 promises to be much better,” Arora added.
Hindalco shares lost 2.45% to close at
Rs.91.45 on BSE on Tuesday, while the benchmark Sensex
gained 1.49% to close at 19,229.84 points.
Bhattacharya said he was confident that the coal block at
Mahan in Madhya Pradesh would get the necessary government clearances by the
end of this year, which would help lower the cost of production at the 359,000 tonne Mahan aluminium smelter.
“I would be very surprised if the clearance for stage II
(from the government) does not come by December,” Bhattacharya said, speaking
on the progress of the greenfield expansion of the
company where trial production has started. Analysts are not optimistic.
“Coal security is a problem for the company and the benefit
of the Mahan project will come only in FY15,” said a metals analyst with an
international brokerage company who did not want to be identified.
Bhattacharya said that in the quarter, demand growth for aluminium in the country was “zero”. Another senior
official said the demand growth for copper was negligible in the quarter in
India.
The Indian economy grew 5% in the year ended 31 March, the
slowest pace in 10 years, and metal-consuming sectors such as construction,
electrical and automobiles saw muted growth.
However, there was hope that the good monsoon could spur
some growth in the quarters ahead, the two officials added.
The company officials said it was looking to refinance its
debt of Rs.200000 Millions (debt to equity ratio 0.38) after refinancing
Rs.50000 Millions recently that led to a saving of Rs.1500 Millions in interest
costs.
“We are constantly looking for possibilities for saving
interest cost,” said Bhattacharya, who declined to say if another restructuring
was in the offing.
The depreciating rupee in the quarter did not help compensate
for the sharp price fall of aluminium prices on the
London Metal Exchange (LME) that serves as a benchmark for most base metal
producers in India.
Aluminium prices were at Rs.102.6 per kg in
the April to June quarter, down 4.11% from Rs.107 per kg in the same quarter a
year ago.
On the LME, aluminium prices fell
by 7.23% in the same quarter.
HINDALCO MANAGES TO REFINANCE RS.47000 MILLIONS FROM SBI AND AXIS
BANK FOR ITS UTKAL ALUMINA PROJECT
Arjit BarmanThe
Economic Times
31 July 2013
In what would
easily be the most aggressive financing done in recent times involving a large
Indian corporate, Aditya Birla
Group flagship Hindalco has managed to refinance Rs 4,7000 Millions from State Bank
of
At an interest rate
of 10.15% payable over an eight-year period, this will imply a reduction of a
whopping 300 basis points from the previous loan
Scheduled to be commissioned in the
second half of this year, Utkal is a
1.5-million-tonne refinery that will feed the company's Mahan and Aditya smelters in Madhya Pradesh
and Orissa, respectively. The total project cost is Rs 70090 Millions, 70% of which has been funded through
debt.
The project debt of Rs.49060 Millions was tied up
three years ago from a consortium of 28 public sector banks, including SBI,
Punjab National Bank, Bank of Baroda and Canara Bank.
Interestingly, the banks had agreed to allow Hindalco
to draw down the amount over a three-year period during the construction of the
plant without any commitment fees.
The company also retained the right to pre-pay the
facility, without any penalty, every year. With the project gearing up for
commissioning, there was much better visibility of future cash flows and
EBITDA, which helped Hindalco go for refinancing on
much better rates ahead of this year's loan anniversary. Of the total amount,
Rs.40000 Millions was raised as a rupee term loan from the two banks at SBI's base rate plus 50 basis points, which translates to
10.20%. The remaining amount was financed from the CP market as short-term debt
at 9.95% rate.
This makes it the lowest pricing achieved by any
corporate in India in recent times, amid unprecedented volatility. Banking
industry officials said that with most banks having a base rate higher than
10.20%, it became difficult for them to match Hindalco's
expectations.
"The deal demonstrates the creditworthiness of
the company and its ability to tap markets at benchmark rates in spite of
liquidity and rates hardening in recent weeks. Utkal
will be able to realise annual savings of
approximately Rs.1500 Millions," said Alphonso
Richard Das, president (finance), Hindalco.
The exercise assumes significance as it was concluded in the backdrop of a
challenging financial market during the past one month.
There were massive capital outflows due to concerns
over the US Fed Reserve contracting its quantitative easing, following which
the rupee went into a free fall resulting in 12-15% depreciation. RBI
intervened with a series of steps to stem the currency's fall, but that choked
up liquidity in the banking system. These sudden developments ended up spiking
the government's borrowing costs to double-digit levels.
Hindalco, said
corporate banking sources, also had to tweak its strategy by dropping its
initial bond issue programme, and opt for bank debt. Utkal Alumina International Ltd had planned to raise
Rs.20000 Millions ($335.8 million) through a 10-year floating rate paper
benchmarked to the SBI
base rate.
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 exist to suggest that the property or assets of the subject are
derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent
government authority for any violation of anti-corruption laws or international
anti-money laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on Corporate
Governance to identify management and governance. These factors often have been
predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.59.88 |
|
|
1 |
Rs.102.59 |
|
Euro |
1 |
Rs.81.69 |
INFORMATION DETAILS
|
Information Gathered
by : |
PLK |
|
|
|
|
Analysis Done by
: |
KRN |
|
|
|
|
Report Prepared
by : |
NKT |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
8 |
|
OPERATING SCALE |
1~10 |
8 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
9 |
|
--LEVERAGE |
1~10 |
9 |
|
--RESERVES |
1~10 |
9 |
|
--CREDIT LINES |
1~10 |
8 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
YES |
|
--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 |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
DEFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
|
|
|
|
TOTAL |
|
74 |
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.