MIRA
INFORM REPORT
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Report Date : |
12.09.2014 |
IDENTIFICATION DETAILS
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Name : |
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) : |
31.03.2014 |
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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.2064.800 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 and Copper. |
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No. of Employees
: |
Information
declined by the management |
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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Maximum Credit Limit : |
USD 1500000000 |
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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 decent profitability levels of the company. Trade relations are reported as fair. Business is active. Payments are
reported to be regular and as per commitments. The 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.
ECGC Country Risk Classification List – June 1, 2014
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Country Name |
Previous Rating (31.03.2014) |
Current Rating (01.06.2014) |
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India |
A1 |
A1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
INDIAN ECONOMIC OVERVIEW
N E W S
As per the latest IMF study, the total weigh of emerging markets in the
GDP of the world on a purchasing power parity basis has seen a sizeable shift.
It highlights how as against 51 % in 2005, the emerging economies now account
for close to 56 % of the global purchasing power GDP as per the latest survey.
And with the emerging economies growing at a faster rate than their developed
counterparts, there are every possibility that the their share goes up further
in the coming years. China may surpass the US over the next few years.
Politics and economics are very intricately connected. They tend to
influence each other in ways that could be very complex and far-reaching. The
prospects of the India’s economy have been seriously compromised due to
political corruption. High inflation, poor standard of living are to a great
extent a result of rampant corruption in the country. China on the other hand,
seems to be facing diametrically opposite challenge. American hedge fund
manager Jim Chanos has been keenly following the political and economic
development in the dragon economy and has figured out something that is quite
worrying. He is of the view that the Chinese economy could be heading toward
trouble on account of new Chinese President Xi Jingping’s very aggressive
anti-corruption drive. Chanos believes tat many things such as apartment sales,
luxury products, etc. were largely bought with dirty money. And it is now
beginning to impact consumption. This may indeed be bad news for an economy
that is struggling to transition from an investment-driven export-oriented
economy to a domestic consumption-driven economy.
A study published by Firstpost has revealed that asset classes like real
estate and equities were the biggest beneficiaries of the liberalization policies.
A firm called Ciane Analytics studied returns from assets including
equities, gold, fixed deposits, G-Secs and real estate since 1991. Real estate
outperformed every other asset classes during the 23-year period with an
annualized return of 20 % ! Equities came in second with annualized return of
15.5 % ! However, while these returns may seem mouthwatering, the fact is that
the return from equities adjusted for inflation came down to just 7.1 %.
Some brief news are as under
. R-Power to buy Jaypee’s hydro assets
. Investors await justice in NSEL case
. India seeks MFN status from Pakistan ahead of meeting
. Ukrain’s clashes with rebels hinder MH17 crash investigation
. India exploring merger of state-owned hydro PSUs
..Higher costs weigh down profit growth to slowest in 9 quarters
..Wal-Mart to expand wholesale business in India
. GMR group moves to strengthen balance sheet
. Central Bank to sell 4 % stake to Life Insurance Corporation
. Tata Chemicals plans to raise up to Rs 10000 mn.
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 |
09.07.2014 |
RBI DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available RBI Defaulters’ list.
EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter in
the publicly available EPF (Employee Provident Fund) Defaulters’ list as of
31-03-2014.
INFORMATION DENIED
MANAGEMENT NON CO-OPERATIVE (91-22-66626666)
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 Hirakud
Smelter Hirakud 768 016, District Sambalpur, Orissa,
India Tel No.:
91-663- 2481307/1452 Fax No.:91-663-2481356 Hirakud
Power Post Box No.12, Hirakud 768 016, District: Sambalpur,
Orissa Alupuram, India Tel No.: 91-663- 2481307 Fax No.: 91-663- 2481342/365 Mahan Aluminium NH-75-E, Singrauli, Sidhi Road, P.O., Bargawan, District- Singaruli - 486886, Madhya Pradesh, India Tel No.: 07805281014 Aditya Aluminium Lapanga, District Sambalpur – 768212, Orissa, India Tel No.:91- 663-2114424 Fax No.: 91- 663-2590434 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 Hirakud FRP Hirakud, District – Sambalpur -– 768016, Orissa, India Tel No.:91-663-6625000 Fax No.:91-663-2481344 |
DIRECTORS
As on 31.03.2014
|
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 : |
Mr. Satish Pai, |
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Designation : |
Deputy Managing Director |
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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. 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 |
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 : |
Chief Marketing Offi cer, Aluminium |
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Name : |
Mr. Sanjay Sehgal |
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Designation : |
President (Chemicals) |
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Name : |
Mr. Dinesh Kumar Kohly |
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Designation : |
Chief Operating Offi cer (Renukoot, Renusagar & Mahan Units) |
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Name : |
Mr. B. Arun Kumar |
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Designation : |
President (Operations) |
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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. Vijay Sapra |
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Designation : |
President |
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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 |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 30.06.2014
|
Category of Shareholders |
No.
of Shares |
Percentage
of Holding |
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(A) Shareholding of Promoter and Promoter Group |
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2398696 |
0.13 |
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745082362 |
39.06 |
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16316130 |
0.86 |
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|
16316130 |
0.86 |
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|
763797188 |
40.05 |
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Total shareholding of Promoter and Promoter Group (A) |
763797188 |
40.05 |
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(B) Public Shareholding |
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|
24242582 |
1.27 |
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|
67471626 |
3.54 |
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|
345520 |
0.02 |
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|
199781065 |
10.47 |
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|
570372960 |
29.90 |
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|
862213753 |
45.21 |
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|
86613323 |
4.54 |
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|
136471581 |
7.16 |
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|
9446861 |
0.50 |
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|
48759128 |
2.56 |
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|
9918385 |
0.52 |
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|
2609690 |
0.14 |
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|
32554920 |
1.71 |
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|
3676133 |
0.19 |
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|
281290893 |
14.75 |
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Total Public shareholding (B) |
1143504646 |
59.95 |
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Total (A)+(B) |
1907301834 |
100.00 |
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(C) Shares held by Custodians and against which Depository Receipts
have been issued |
0 |
0.00 |
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|
14542309 |
0.00 |
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|
142795140 |
0.00 |
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|
157337449 |
0.00 |
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Total (A)+(B)+(C) |
2064639283 |
0.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturer of
Aluminum and Copper. |
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Products : |
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PRODUCTION STATUS [AS ON 31.03.2011]
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Class of goods |
Installed Capacity [Qty] |
Actual Production [Qty] |
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Aluminium Metal |
506400* |
537935 |
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Rolled Products |
205000 |
199821# |
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Extruded Products |
31000 |
35865@ |
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Conductor Redraw Rods |
56400 |
94307$ |
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Aluminium Foil |
40000 |
17698 |
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Aluminium Wheel |
-- |
-- |
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PCS |
PCS |
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Hydrate and Alumina |
1500000 |
1352877 |
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Electricity |
1109.200 MW |
9213 MU |
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Electricity (Co-generation) |
248.8 MW |
1463 MU |
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Continuous Cast Copper Rods (CCR) |
142200 |
144553 |
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Copper cathodes |
500000 |
335598 |
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Sulphuric Acid |
1670000 |
1097158 |
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Phosphoric Acid |
180000 |
102167 |
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DAP and complexes |
400000 |
219805 |
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Gold |
15 |
6960 |
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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 : |
Information
declined by the management |
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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 |
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Facilities : |
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Banking
Relations : |
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Auditors : |
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Name : |
Singhi and Company Chartered Accountants |
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Address : |
Kolkata, West Bengal, India |
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Cost Auditors : |
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Name : |
R. Nanabhoy and Company Cost Accountant |
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Address : |
Mumbai, Maharashtra India |
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|
Subsidiaries: |
· Hindalco Guniea SARL · Minerals & Minerals Limited · Aditya Birla Chemicals (India) Limited · Utkal Alumina International Limited · Utkal Alumina Technical and General Services 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 · Hindalco do Brasil Indústria e Comércio de Alumina Ltda., (w.e.f. 1st August, 2013) · 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 · A V Minerals (Netherlands) N.V. · A V Metals Inc. · Novelis Inc. · Novelis (India) Infotech Limited · Novelis No. 1 Limited Partnership · 4260848 Canada Inc. · 4260856 Canada Inc. · 8018227 Canada Inc. · 8018243 Canada Limited · Novelis Cast House Technology Limited · Novelis Corporation (Texas) · Aluminum Upstream Holdings LLC (Delaware) · Eurofoil Inc. (USA) (New York) · Logan Aluminium Inc. (Delaware) · Novelis Acquisitions LLC (Delaware) · Novelis Brand LLC (Delaware) · Novelis PAE Corporation · Novelis North America Holdings Inc. · Novelis South America Holdings LLC · Novelis Delaware LLC (Delaware) · ALBRASILIS - Aluminio do Brasil Industria e Comércio Ltda. · Novelis do Brasil Ltda. · Novelis Laminés France SAS · Novelis PAE SAS · Novelis Aluminium Beteiligungs GmbH · Novelis Deutschland GmbH · Novelis Sheet Ingot GmbH · Novelis Aluminium Holding Company · Novelis Italia SpA · Al Dotcom Sdn Berhad · Alcom Nikkei Specialty Coatings Sdn Berhad · Aluminum Company of Malaysia Berhad · Novelis de Mexico S.A. de C.V. · Novelis Madeira, Unipessoal, Limited · Novelis Korea Limited · Novelis AG · Novelis Switzerland SA · Novelis UK Limited · Novelis Europe Holdings Limited · Novelis Services Limited · Novelis (Shanghai) Aluminum Trading Company Limited · Novelis (China) Aluminum Products Company Limited · Novelis MEA Limited (Dubai) · Novelis Vietnam Company Limited · Novelis Asia Holdings (Singapore) Pte. Limited., w.e.f. 5th December, 2013 |
|
|
|
|
Associates: |
· Aditya Birla Science and Technology Company Limited Idea Cellular Limited · Aluminum Norf GmbH · Consorcio Candonga · Deutsche Alumnum Verpackung Recycling GmbH · France Aluminum Recyclage SA |
|
|
|
|
Joint Ventures: |
· Mahan Coal Limited · Hydromine Global Minerals (GmbH) Limited · MNH Shakti Limited |
|
|
|
|
Trust of the
Company: |
· Trident Trust |
CAPITAL STRUCTURE
As on 31.03.2014
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 |
|
|
|
|
|
|
2,065,141,514 |
Equity Shares |
Re. 1/- each |
Rs.2065.100 Millions |
|
|
|
|
|
Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
2,065,134,117 |
Equity Shares |
Re. 1/- each |
Rs.2065.100 Millions |
|
546249 |
Less: Forfeited Shares |
|
Rs.0.500 Million |
|
|
Add: Forfeited Shares |
|
Rs.0.200 Million |
|
|
|
|
|
|
|
|
|
Rs.2064.800
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 |
Rs.
In Millions |
|
Shares outstanding at the beginning of the year |
1914583068 |
1914.600 |
|
Shares allotted pursuant to exercise of ESOP |
4800 |
|
|
Equity Shares Allotted pursuant to exercise of Share Warrants |
150000000 |
150.000 |
|
Equity Shares Outstanding at the end of the period |
2064587868 |
2064.600 |
(b) Rights, preferences and restrictions attached to Equity Shares:
The Company has one class of equity shares having
a par value of Rs.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 |
349963487 |
16.95 |
|
Turquoise Investment and Finance Limited |
124012468 |
6.01 |
|
Morgan Guaranty Trust Company of New York
(represents GDRs) |
162138001 |
7.85 |
|
Life Insurance Corporation of India and
its Associates |
239089223 |
11.58 |
(d) Shares Reserved
for Issue under Options:
The Company has reserved Equity Shares for issue under the Employee Stock Options Scheme. Please refer Note No. 41 on “Employee Share-Based Payment” for details of Employee Stock Options Scheme.
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES
OF FUNDS |
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
|
|
|
|
|
I.
EQUITY AND LIABILITIES |
|
|
|
|
(1)Shareholders' Funds |
|
|
|
|
(a) Share Capital |
2064.800 |
1914.800 |
1914.800 |
|
(b) Reserves & Surplus |
365259.700 |
332396.000 |
312996.800 |
|
(c) Money received against
share warrants |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
(2) Share Application money
pending allotment |
0.000 |
5413.100 |
5413.100 |
|
Total
Shareholders’ Funds (1) + (2) |
367324.500 |
339723.900 |
320324.700 |
|
|
|
|
|
|
(3) Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
221085.800 |
204430.500 |
111151.300 |
|
(b) Deferred tax liabilities
(Net) |
11743.100 |
11911.400 |
12245.600 |
|
(c) Other long term
liabilities |
8308.600 |
9742.800 |
9531.000 |
|
(d) long-term provisions |
3419.600 |
3009.400 |
2873.200 |
|
Total
Non-current Liabilities (3) |
244557.100 |
229094.100 |
135801.100 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a) Short term borrowings |
42583.700 |
37017.200 |
34567.800 |
|
(b) Trade payables |
43837.500 |
30440.500 |
46597.700 |
|
(c) Other current liabilities |
29019.100 |
19240.900 |
9986.100 |
|
(d) Short-term provisions |
10377.600 |
10669.000 |
9198.800 |
|
Total
Current Liabilities (4) |
125817.900 |
97367.600 |
100350.400 |
|
|
|
|
|
|
TOTAL |
737699.500 |
666185.600 |
556476.200 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i) Tangible assets |
180249.800 |
70710.000 |
71259.500 |
|
(ii) Intangible Assets |
297.300 |
266.500 |
242.500 |
|
(iii) Capital work-in-progress |
172771.300 |
236051.100 |
162567.000 |
|
(iv) Intangible assets under
development |
1.000 |
0.100 |
2.400 |
|
(b) Non-current Investments |
153124.500 |
140501.700 |
135037.000 |
|
(c) Deferred tax assets (net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
11611.500 |
16810.800 |
22495.300 |
|
(e) Other Non-current assets |
125.200 |
345.100 |
78.100 |
|
Total
Non-Current Assets |
518180.600 |
464685.300 |
391681.800 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a) Current investments |
65950.100 |
64319.600 |
45834.000 |
|
(b) Inventories |
89145.800 |
77026.100 |
77428.600 |
|
(c) Trade receivables |
12836.500 |
15150.400 |
14274.500 |
|
(d) Cash and cash equivalents |
11631.700 |
14978.200 |
7223.000 |
|
(e) Short-term loans and
advances |
32264.000 |
22617.300 |
16476.500 |
|
(f) Other current assets |
7690.800 |
7408.700 |
3557.800 |
|
Total
Current Assets |
219518.900 |
201500.300 |
164794.400 |
|
|
|
|
|
|
TOTAL |
737699.500 |
666185.600 |
556476.200 |
PROFIT & LOSS ACCOUNT
|
|
PARTICULARS |
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
|
SALES |
|
|
|
|
|
Income |
278509.300 |
260569.300 |
265967.800 |
|
|
Other Income |
11244.200 |
9830.900 |
6157.900 |
|
|
TOTAL
(A) |
289753.500 |
270400.200 |
272125.700 |
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
Purchases of Stock-in-Trade |
0.300 |
3.800 |
2059.800 |
|
|
Cost of Materials Consumed |
188042.800 |
171365.100 |
178430.800 |
|
|
Changes in inventories of finished
goods, work-in-progress and Stock-in-Trade |
(6762.100) |
1279.400 |
(4073.100) |
|
|
Employees benefits expense |
13461.000 |
12008.000 |
11133.500 |
|
|
Impairment Loss/(Reversal)
(Net) |
0.000 |
172.500 |
0.000 |
|
|
Power and Fuel |
35576.100 |
30730.400 |
28706.700 |
|
|
Other expenses |
23272.400 |
23145.400 |
18662.500 |
|
|
Exceptional Items |
3959.800 |
0.000 |
0.000 |
|
|
TOTAL
(B) |
257550.300 |
238704.600 |
234920.200 |
|
|
|
|
|
|
|
Less |
PROFIT/
(LOSS) BEFORE INTEREST, TAX,
DEPRECIATION AND AMORTISATION (C) |
32203.200 |
31695.600 |
37205.500 |
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
7116.500 |
4359.800 |
2936.300 |
|
|
|
|
|
|
|
|
PROFIT
/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
25086.700 |
27335.800 |
34269.200 |
|
|
|
|
|
|
|
Less/
Add |
DEPRECIATION/
AMORTISATION (F) |
8232.900 |
6869.500 |
6899.700 |
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) BEFORE TAX (E-F) (G) |
16853.800 |
20466.300 |
27369.500 |
|
|
|
|
|
|
|
Less |
TAX
(I) |
2720.500 |
3474.300 |
4997.500 |
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) AFTER TAX (G-I)
(J) |
14133.300 |
16992.000 |
22372.000 |
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
7500.000 |
4000.000 |
3500.000 |
|
|
|
|
|
|
|
|
APPROPRIATIONS |
|
|
|
|
|
Debenture Redemption Reserve |
1500.000 |
1500.000 |
0.000 |
|
|
General Reserve |
10560.000 |
8995.000 |
18520.300 |
|
|
Proposed Dividend |
2065.000 |
2681.000 |
2967.600 |
|
|
Corporate Dividend Tax |
9.000 |
317.000 |
384.100 |
|
|
Balance
Carried to the B/S |
7500.000 |
7500.000 |
4000.000 |
|
|
|
|
|
|
|
|
EARNINGS
IN FOREIGN CURRENCY |
|
|
|
|
|
F.O.B. Value of Exports |
82919.500 |
75715.500 |
78566.000 |
|
|
Other Income |
2043.500 |
7.500 |
0.400 |
|
|
TOTAL
EARNINGS |
84963.000 |
75723.000 |
78566.400 |
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
Raw Materials |
57574.700 |
160752.500 |
150812.900 |
|
|
Coal and Fuel |
1730.300 |
4011.900 |
2590.300 |
|
|
Stores and Spares |
985.900 |
724.300 |
896.200 |
|
|
Capital Goods |
3517.800 |
17738.300 |
13002.500 |
|
|
Trading Goods |
0.000 |
0.000 |
2047.000 |
|
|
TOTAL
IMPORTS |
63808.700 |
183227.000 |
169348.900 |
|
|
|
|
|
|
|
|
Earnings
/ (Loss) Per Share (Rs.) |
|
|
|
|
|
Basic |
7.09 |
8.88 |
11.69 |
|
|
Diluted
|
7.09 |
8.87 |
11.68 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
PAT / Total Income |
(%) |
4.88 |
6.28 |
8.22 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
6.05 |
7.85 |
10.29 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
4.09 |
7.07 |
10.57 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.05 |
0.06 |
0.09 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt /Networth) |
|
0.72 |
0.71 |
0.45 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.74 |
2.07 |
1.64 |
FINANCIAL ANALYSIS
[all figures are
in Rupees Millions]
DEBT EQUITY RATIO
|
Particular |
31.03.2012 |
31.03.2013 |
31.03.2014 |
|
|
(Rs.
In Millions) |
(Rs.
In Millions) |
(Rs.
In Millions) |
|
Share Capital |
1914.800 |
1914.800 |
2064.800 |
|
Reserves & Surplus |
312996.800 |
332396.000 |
365259.700 |
|
Share Application money
pending allotment |
5413.100 |
5413.100 |
0.000 |
|
Net
worth |
320324.700 |
339723.900 |
367324.500 |
|
|
|
|
|
|
long-term borrowings |
111151.300 |
204430.500 |
221085.800 |
|
Short term borrowings |
34567.800 |
37017.200 |
42583.700 |
|
Total
borrowings |
145719.100 |
241447.700 |
263669.500 |
|
Debt/Equity
ratio |
0.455 |
0.711 |
0.718 |
YEAR-ON-YEAR GROWTH
|
Year
on Year Growth |
31.03.2012 |
31.03.2013 |
31.03.2014 |
|
|
(Rs.
In Millions) |
(Rs.
In Millions) |
(Rs.
In Millions) |
|
Sales |
265967.800 |
260569.300 |
278509.300 |
|
|
|
(2.030) |
6.885 |
NET PROFIT MARGIN
|
Net
Profit Margin |
31.03.2012 |
31.03.2013 |
31.03.2014 |
|
|
(Rs.
In Millions) |
(Rs.
In Millions) |
(Rs.
In Millions) |
|
Sales |
265967.800 |
260569.300 |
278509.300 |
|
Profit |
22372.000 |
16992.000 |
14133.300 |
|
|
8.41% |
6.52% |
5.07% |
LOCAL AGENCY FURTHER INFORMATION
CURRENT MATURITIES
OF LONG-TERM DEBT DETAILS:
|
Particulars |
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
|
(Rs. In Millions) |
||
|
Current maturities of long-term debt |
6526.400 |
3628.200 |
15.300
|
|
|
|
|
|
|
Total |
6526.400 |
3628.200 |
15.300
|
|
Sr. No. |
Check List by Info Agents |
Available in
Report (Yes / No) |
|
1] |
Year of Establishment |
Yes |
|
2] |
Locality of the firm |
Yes |
|
3] |
Constitutions of the firm |
Yes |
|
4] |
Premises details |
No |
|
5] |
Type of Business |
Yes |
|
6] |
Line of Business |
Yes |
|
7] |
Promoter's background |
Yes |
|
8] |
No. of employees |
No |
|
9] |
Name of person contacted |
No |
|
10] |
Designation of contact
person |
No |
|
11] |
Turnover of firm for last
three years |
Yes |
|
12] |
Profitability for last
three years |
Yes |
|
13] |
Reasons for variation
<> 20% |
-- |
|
14] |
Estimation for coming
financial year |
No |
|
15] |
Capital in the business |
Yes |
|
16] |
Details of sister concerns |
Yes |
|
17] |
Major suppliers |
No |
|
18] |
Major customers |
No |
|
19] |
Payments terms |
No |
|
20] |
Export / Import details
(if applicable) |
No |
|
21] |
Market information |
-- |
|
22] |
Litigations that the firm
/ promoter involved in |
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
CASE DETAILS
BENCH:-BOMBAY
|
Lodging No.:- |
WTXAL/621/2010 |
Filing Date:- |
17/03/2010 |
Reg. No.:- |
WTXA/70/2011 |
Reg. Date:- |
20/01/2011 |
|
|
|
Petitioner:- |
THE COMMISSIONER OF WEALTH TAX - 6 MUMBAI |
Respondent:- |
HINDALCO INDUSTRIES LIMITED |
|
|
|
Petn.Adv.:- |
Suchitra Kamble |
|
|
|
District:- |
MUMBAI |
|
|
|
Bench:- |
DIVISION |
|
|
|
|
|
Status:- |
Admitted(Unready) |
Category:- |
TAX APPEALS |
|
|
|
Last Date:- |
25/01/2012 |
Stage:- |
APPEALS FOR ADMISSION - FRESH [ORIGINAL
SIDE MATTERS] |
|
|
|
Last Coram:- |
|
|
|
|
|
HON'BLE SHRI JUSTICE A.R. JOSHI |
|
|
|
Act :- |
Wealth Tax Act, 1957 |
FINANCIAL PERFORMANCE
Standalone performance for the year ended March 31, 2014 witnessed the net sales grew by 7% with Profit before depreciation, interest and tax growth at 13%. Interest costs went up significantly consequent to higher borrowing and capitalization of some assets at projects. Due to higher interest cost and exceptional items, the standalone Net Profit was lower at Rs.14130.000 Millions.
An exceptional item of Rs.3960.000 Millions relates to a liability of Rs.3240.000 Millions under The UP Tax on Entry of Goods into Local Areas Act, 2007 (UP Entry Tax) and a Liability of Rs.720.000 Millions 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. The Consolidated Revenue as well as Profit before Depreciation, Interest and Taxes extended by 9% and 5% respectively in comparison to the last year’s corresponding figures. Net profit was lower at Rs.21750.000 Millions, because of higher interest and depreciation and exceptional items.
AWARDS AND
RECOGNITIONS
Renukoot Aluminum Complex wins Greentech HR Platinum Award, in the Best Strategy category, the highest in this segment. Taloja Rolling Plant wins National Safety Awards presented by the National Safety Council (Maharashtra Chapter) for Longest Accident Free Period 2012 and Lowest Accident Frequency Rate, 2012.
Taloja Rolling Plant awarded Best Supplier in aluminum metal category by Tata Toyo Radiators for the year 2013-14. Alupuram Extrusions team earned third place in the Productivity Competition conducted by the Indian Institution of Industrial Engineering, Kerala Chapter, held in April 2013. Muri Alumina Plant wins Greentech Environment Gold Award for environmental excellence, in recognition of its achieving a major target to reduce water and energy consumption.
Belgaum Alumina Plant wins the Government of Karnataka State Export Excellence Gold Awards, under the product category Chemicals and Plastics for medium/large enterprises for the years 2011-12 and 2012-13. The award was presented on 21st February 2014.
Belgaum Plant - Boilers is awarded “First Prize” in “Best Safe Industrial Boiler”, by the Karnataka State Safety Institute, Department of Factories and Boilers, Government of Karnataka, at the State Level Safety Competition held on the eve of 43rd National Safety Day Celebrations - 2014.
Lohardaga Mines Division wins 1st Prize of Overall performance during Metalliferous Mine Safety Week Celebration-2013 held under the aegis of Directorate General of Mines Safety, Ranchi Region. Lohardaga Mines Division wins 1st and 2nd Prizerespectively of Overall performance under the category of Fully Mechanized mines during Mine Environment and Mineral Conservation Week Celebration 2013-14, held under the aegis of Indian Bureau of Mines, Ranchi Region.
MANAGEMENT DISCUSSION
AND ANALYSIS
BUSINESS OVERVIEW
The global economy faced varied challenges during the last fiscal year.
While the US economy seems to be recovering on the back of fiscal stimulus and
EU slowly emerged out of its crisis, it was the turn of emerging markets,
hitherto the prime drivers of economic growth, to face growth impediments.
BRIC economies along with Indonesia, the fabulous five and the growth
drivers of Global economy for past decade, turned ‘fragile five’. Easy monetary
policy post the global financial crisis, which was meant to revive growth, also
caused macroeconomic imbalances and inflation in some pockets. The ensuing
efforts to control inflation and country-specific structural issues resulted in
economic slowdown in many of the emerging markets.
Commodities continued to languish given the slow growth in China that
hit a 13 year low, and consumption slowed down in many emerging markets. In
India, the challenges were even tougher. Declining GDP growth, slowdown in
manufacturing sector and power sector impacted demand, while the cost pressures
continued, primarily driven by high energy prices. Not only that the prices of
crude and its derivatives continued to remain at elevated levels, 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 the backdrop of such challenging macroeconomic environment, the
Company went through a transformational phase. FY14 was a watershed year for the
Company. An investment of over USD 5 Bn, after facing various unforeseen
challenges, got ready for delivery. The three Greenfield projects and three
brown field projects came on stream during the course of the year.
Braving these odds, the Company registered a remarkable performance.
Profit before interest, depreciation and tax increased by 13% over the previous
year (Standalone). On a consolidated basis, the Company registered a turnover
of US$ 14.5 billion (Rs.876950.000 Millions) and an EBITDA of US$ 1.5 billion
(Rs.93030.000 Millions).
Novelis, the Company’s 100% subsidiary also faced several headwinds in
the form of extended winter in the North American markets that led to sharp
deterioration in the can market, rising physical premium leading to pricing
pressures in the Asian markets, etc. Yet, it managed to deliver a robust
adjusted EBITDA of US$ 885 Million.
BUSINESS
HIGHLIGHTS
The Company delivered a strong operational performance during FY14 in
the face of several adversities. Three Greenfield projects (Mahan, Utkal and
Aditya) became operational and are currently ramping up. These projects, in
their fullness, would redefi ne the Company’s cost competitiveness on the
global compass and significantly enhance the sustainability of its operations.
A unique strategy to catapult Indian aluminium market to the next level
is already in place and soon the Company will develop capability to produce
worldclass products such as canbody stock and ultra-thin gauge foils from its
facilities in Hirakud and Mouda respectively. This would not only enhance the
product portfolio but would also re-define Indian aluminium market.
At Novelis, projects are getting ready to capture the growth in emerging
markets and enhance product portfolio across the globe. These projects will
enable the Company to leverage the growth in nascent product markets such as
automobiles, driven by environmental consciousness, and in beverage demand in
Brazil spurred by the Soccer world cup and the Summer Olympics. Significant
strides have been made to strengthen the recycling capabilities that will help
Novelis improve its cost structure and enhance competitiveness and profi
tability.
The highlights for the fi nancial year were:
• Highest ever Aluminium Metal volumes produced and sold
Aluminium Metal production in India is up 13%
• Highest ever Alumina production as Utkal started delivering strong
volumes
Alumina production up 23%
• Strong operating performance by Copper business helped yield record
EBIT.
• Three Greenfi eld projects, with an investment of over Rs.300000.000
Millions are now ramping up and are on course to achieve desired results,
• In addition, the brownfi eld projects, viz, Hirakud smelter expansion,
Hirakud FRP Plant and Mouda Foils are also on stream and would strengthen the
aluminium VAP portfolio further.
• Novelis too, achieved significant progress on all its strategic
expansions. These include the ramp up of rolling production at the Pinda plant
in Brazil, coupled with the mill expansions in Korea and the start of
commercial production at its US automotive finishing lines.
• Consolidated revenue stood at Rs.876950.000 Millions as compared with
Rs.801920.000 Millions in FY13.
• Profit before depreciation, interest and taxes stood at Rs.93030.000
Millions as against Rs.88490.000 Millions in FY13.
• Net profi t was lower at Rs.21750.000 Millions as compared with
Rs.30270.000 Millions in FY13 on account of higher interest, depreciation and
certain exceptional items.
• Of the total annual revenue of Rs.876950.000 Millions, Aluminium
Business contributed Rs.692180.000 Millions, vs. Rs.622590.000 Millions last
year. Aluminium EBIT for FY14 was Rs.37640.000 Millions as compared with
Rs.43880.000 Millions posted in FY13.
• Copper business delivered a robust performance, generating an EBIT of
Rs.10250.000 Millions. The copper business’ performance cushioned the pressure
on aluminium margins, vindicating the virtue of a balanced portfolio of the
Company.
• During the year, the Company refinanced project loans for all three
Greenfield projects; this would yield significant savings in interest payments.
BUSINESS
PERFORMANCE REVIEW
ALUMINIUM BUSINESS
INDUSTRY REVIEW
Global Aluminium demand grew at around 5% in 2013 to around 50 Mn
tonnes. The demand growth rate moderated primarily as Chinese demand growth
moderated to 10% after clocking a growth rate of 19% and 16% in the earlier
years. Elsewhere, aluminium consumption increased in the OECD markets notably
in the US and Europe. North American consumption grew at around 2% after 6%
growth in the previous year, while EU registered a turnaround with 1.1% growth
as compared with de-growth in the previous year. Apart from Asia, which grew at
7%, demand growth from Africa was strong at about 5%.
In China, visible slowdown in the construction sector after government
enforced restrictions and decline in demand from packaging sector resulted in
slowing of demand growth. However, the demand from automobile sector and
consumer goods sectors remained strong. In the US, though demand growth was
secular across all industries; the primary drivers were automobile and
aerospace sectors.
In India, with a slowdown in power sector (that consumes over 40% of
aluminium) and auto sector, Indian consumption declined for the first time in
over a decade.
Globally, aluminium production increased by around 4.5% to more than 50
Mn tonnes. Chinese production increased by almost 10% to 24.4 Mn tonnes which
was around 47% of global production. In the rest of the world, there was a
marginal decline in production, which was lower by around 0.3%. Barring Middle
East, there were production curtailments in most global geographies. In
Australia, South America and Europe, production declined by around 5%.
Chinese capacities increased by over 14% as new capacities continued to
come on stream, especially in Western China, while the closure of old
capacities lagged behind.
The industry continued to be plagued with high inventories and the
global aluminium inventory, including the off-exchange stocks, has been
estimated at over 12 million tonnes, which had a huge overhang on the prices.
Strong contango and low financing cost ensured that more and more stocks
got diverted to the warehouses under financial contracts. This, coupled with
strong demand and low load out rates due to various reasons
including logistic challenges, ensured high regional premiums, which
reached historic high levels. Across the globe, local premiums were higher than
$220/ tonne.
Sluggish global economic conditions, surplus production, rising inventories
and periodic bouts of risk averseness leading to bearish sentiments resulted in
low aluminium prices.
Cost of production for most aluminium players continued to remain high
due to challenges pertaining to energy inputs and resources.
In the western world, rising grid tariffs with increasing energy demand
continued to impact power costs that account for almost 30-40% of aluminium
cost of production. South Africa too continued to struggle with energy
inflation. In China, smelters on the eastern side continued to suffer as energy
prices continued to climb up with the defi cit widening in the east coast
region.
China now is in the process of building new capacities in the
Western/North Western region, endowed with abundant coal reserves and this is
expected to bring down the power cost substantially. Indian smelters continued
to bear the brunt of rising coal prices and rising diesel prices accentuated by
decontrolling steps in the oil sector.
The other important input cost for the aluminium smelters is alumina
cost. Alumina prices were supported by factors like China’s imports, and export
ban/increased export taxes from some countries like Indonesia, India on
bauxite. Alumina prices have moved up to almost 17-18% of aluminium prices and
are expected to remain firm in the wake of strong demand from Chinese and
middle eastern smelters as also constrained supplies of ore (bauxite) due to
various reasons such as higher costs, declining grades, resource nationalism,
logistic challenges, regulatory road blocks, etc.
Several global producers continued to make losses due to rising costs
and subdued prices. In fact, the recent aluminium pricing scenario is the
longest period wherein aluminium prices are still well below the marginal cost
of production and where over 25% of producers are estimated to be making cash
losses.
OPERATIONAL REVIEW
Against this backdrop, the Company’s aluminium business operational
performance was truly creditable and superior to most global peers.
OUTLOOK
After a slowdown, the Indian recovery is on the mend and the economy is
expected to grow at over 5% in 2014 on stronger consumption and investment, as
per various estimates.
Similarly, the average economic growth in South Asia is projected to pick
up gradually over the next few years, after remaining near a two-decade low in
2013. The moderate recovery is expected to be underpinned by stronger
consumption and investment in the context of enhanced macroeconomic stability.
The business and consumer confidence is expected to improve with enhanced
external balances and relatively stable currencies.
The external demand is also projected to improve in 2014-15 as economic
activity in developed economies gains momentum. US Fed is not expected to raise
rates until the next year. A possible fallout may be that low rates for too
long could push asset prices too high, or encourage investors to take on too
much risk. The Fed is unwinding its massive bond-buying stimulus this year and
is expected to start raising interest rates next year from the near-zero levels
the central bank has maintained since December 2008. As the Fed normalizes
monetary policy, one may witness a few hiccups. Similarly, at present, certain
geo-political risks also weigh on the demand recovery and growth prospects.
In 2014, the global aluminium demand is expected to grow at around 6-7%.
This demand growth will be led by recovery in the OECD economies. The US and
the EU are both expected to witness a healthy demand pick up. After severe winter
weather affected activity in the USA in Q1 2014, the outlook for the rest of
the year and beyond is positive with primary aluminium demand growing from 5.0
Mt in 2013 to 5.9 Mt in 2018, a CAGR of 3.4%. Demand from the construction
sector in the USA is also forecast to grow notably by 2018. The heavy winter
storms that affected the USA for much of Q1 2014 had a significant impact on
construction activity but with the weather easing and the traditional building
season about to begin, there is optimism about demand from the sector in 2014.
Western Europe is expected to grow at over 2% in 2014. Growth in demand
for primary aluminium in the region is expected to rise at a slightly faster
rate than the economic growth rate. Germany is expected to lead growth in the
region this year with an increase of over 3% for primary aluminium demand. The
two major end use sectors in Western Europe; construction and transport, are
set to lead the region’s growth in primary consumption over the forecast
period. An increase in demand in the transport sector, as vehicle production in
Western Europe increases and aluminium content in automobiles rises, will
result in increase in demand.
China, which has been the prime demand driver for aluminium over last
several years, shall witness a decline in demand growth rate and yet the demand
is expected to grow at around 8% (on a higher base). The demand is expected to
be led by investment in infrastructure and also rising urbanisation leading to
consumption led growth. The demand from Japan and Korea is expected to remain
steady particularly in Japan with ‘Abenomics’ showing its impact. The demand
from South East Asia is expected to be strong. Indonesia may witness a strong
surge in demand after the elections, according to some analysts. Middle East
demand too is expected to remain strong with thrust on downstream consumer
centric growth.
In India, demand prospects have changed dramatically after the strong
political mandate and the improvement in investor sentiment. Demand is expected
to witness a significant boost with expectations of reforms, especially in the
power sector. Aluminium consumption growth in 2014 is expected to be in line
with the expected GDP growth of over 5%. In 2013, global aluminium production
was at around 50.2 Mn tonnes, which is expected to increase to 52.7 Mn tonnes
in 2014 as per the available projections.
Consumption is expected to outpace production in 2014 rising to 52.8 Mn
tonnes from 49.9 Mn tonnes in 2013, leading to a modest deficit after many
years and this deficit is expected to increase further in 2015 as consumption
is expected to continue to remain strong, while capacity curtailments in some
regions are expected to keep overall production increase in check. The deficit
excluding China will be significantly higher, as per various projections. In
China though, there will be a surplus as new capacities in Western China come
to the fore. Outside China, several capacity curtailments were announced. These
cuts aggregate to over 2 million tonnes.
Prolonged period of depressed prices and cost inflation has led several
producers to mothball lossmaking facilities and curtail production. In many
cases, the capacity closures are permanent as many of these were dependent on
grid power based on long term contracts. With the resultant higher power
tariffs after these contracts got over, these capacities have become unviable.
Even in China, government has announced several measures to curb
pollution, which are already forcing some of the older smelters to close. A
total of around 3 Mn tonne capacity curtailments are expected in China, while
at the same time over 4 Mn tonne of capacity is expected to come on stream
primarily in the North West China. These capacities though are expected to take
some time for ramp up, especially in view of the subdued prices.
The other major factor that is likely to put a lid on Chinese aluminium
production is Indonesian bauxite export restrictions. Over the last few years,
bulk of Chinese refineries were dependent on bauxite from Indonesia. If these
restrictions continue, China may face bauxite crunch and may try to import
bauxite from other regions which will have significant bearing on costs; this
may result in further production cuts. Outside China, the production is
expected to increase in the Middle East and India, while the Western world,
Brazil and Australia are expected to produce less.
In addition to the robust demand, the inventory financing trade is
likely to continue in view of the low interest rate regime. As a result, physical
availability is expected to remain constrained keeping physical premium high.
LME prices, in the recent times have moved up after touching $1700
levels. More importantly, physical premiums have moved up sharply and now are
at historic high levels after the proposed changes in LME rules were halted
after a UK court ruling. The rule was due to have started on April 1st, 2014 in
order to reduce queues at affected warehouses. The ruling could maintain
premiums at elevated levels. Industry sources forecast the US Midwest premium
to average 18¢/lb in 2014 before easing to average 11¢/lb in 2018. In 2014, the
premium represented 18% of the delivered price compared to less than 3% in
2007.
BUSINESS
PERFORMANCE:
Copper business got impacted due to planned shutdown in the first
quarter. The production was restored following the revamp of smelter. The
business registered a strong operating performance with production for the year
being 4.5% higher than the previous year.
Operating gains on the back of enhanced efficiencies, aided by various
strategic initiatives for value maximisation and waste to wealth initiatives
enabled the business to register best ever operating performance, with
operating profits surpassing Rs.10000.000 Millions mark for the first time in
the history of the business. The TC/RC for the year was better though
co-product prices were significantly lower as industrial growth slowed down.
Better TC/RC and higher proportion of VAP allowed the business to partially
offset the negative impact of lower co-product prices and inflationary
tendencies on the input front.
With improved product and market mix, and better operating efficiencies,
copper business managed to deliver a robust performance. Despite a shutdown in
Q1, the EBIT for the year stood at Rs.9380.000 Millions against Rs.7680.000
Millions in the previous year, a jump of 22%.
COPPER OUTLOOK
In the short-term, the pace of copper supply growth relative to demand
is expected to keep the market in surplus before 2017. Industry experts
forecast growth in refined copper consumption to be a little shy of 5% in 2014,
driven largely by China and North America. Two key factors are likely to drive
consumption of copper: First, restricted scrap availability globally (global
scrap supply has fallen by 9-10% year-on-year in Q1 CY2014) and secondly,
greater affordability for consumers that the drop in copper prices has
generated.
Current copper prices appear to represent a bargain and an excellent
buying opportunity for China’s State Reserve Bureau and industrial consumers,
according to some analysts.
Copper demand in China is expected to be strong given the thrust on
rural electrification and the grid development. In addition to China, the
demand from South Korea and Japan is also expected to grow firmly. The Korean
economy is expected to register a strong recovery this year, with the Bank of
Korea recently raising its annual growth forecast to 4% - higher than the 3%
increase last year. Overall Asian copper demand is expected to grow at over 8%.
Copper demand from EU region is expected to be growing at around 4% as EU
continues to recover, while the North American demand is likely to grow at
around 3%. Smelter capacity is expected to continue its growth at a CAGR of
5.8% p.a. till 2016. On account of surplus and risk averse macroeconomic
environment, copper prices are unlikely to flare up in the next 1 – 2 years.
Overall mine production capacity is forecast to rise from 18 million tonnes in
2013 to 21 millon tonnes by 2015, an increase of 17%. Beyond 2015, mine
production may be subdued due to reserve depletion. Available forecasts suggest
that with new mine supply
coming on stream, the concentrate availability should be good -
reflecting in improved TC/RC. However, Indonesian export ban and tax issues may
create certain hiccups.
The benchmark TC/RC for 2014 is higher than 2013 benchmarks. With TC/RC
contracts signed at levels 30% higher than 2013 levels, smelters are in a good
spot. Higher TC/RC, coupled with expected revival in the domestic economy
augurs well for the Company’s copper business. Indian refined copper market,
which had a lackluster trend in FY14, is expected to look up in the near-term
on the back of improved investor sentiment. However, rising trend in imports
poses a challenge for the domestic industry.
UNSECURED LOAN
|
PARTICULARS |
31.03.2014 (Rs.
in Millions) |
31.03.2013 (Rs.
in Millions) |
|
Long-term
Borrowings |
|
|
|
Deferred Payment Liabilities |
13.300 |
18.900 |
|
Short-term
borrowings |
|
|
|
Buyers’ Credit |
19277.500 |
22844.700 |
|
Packing Credit |
23194.000 |
12974.000 |
|
Others |
0.0000 |
400.000 |
|
Total |
42484.800 |
36237.600 |
|
Note: Long-term
Borrowings Deferred Payment Liabilities represent sales tax deferral which is payable in yearly instalment by FY 2018. |
||
INDEX OF CHARGES
|
S.NO. |
CHARGE ID |
DATE OF CHARGE
CREATION/MODIFICATION |
CHARGE AMOUNT
SECURED |
CHARGE HOLDER |
ADDRESS |
SERVICE REQUEST
NUMBER (SRN) |
|
1 |
10505998 |
19/06/2014 * |
75,000,000,000.00 |
AXIS TRUSTEE SERVICES LIMITED |
AXIS HOUSE, BOMBAY
DYEING MILLS COMPOUND, PANDURA |
C11200052 |
|
2 |
10485778 |
13/03/2014 |
99,000,000,000.00 |
STATE BANK OF INDIA |
STATE BANK BHAVAN, MADAM CAMA ROAD, MUMBAI, MAHARASHTRA - 400021, INDIA |
C00807917 |
|
3 |
10435421 |
25/06/2013 |
15,000,000,000.00 |
SBICAP TRUSTEE COMPANY LIMITED |
202 MAKER TOWER "E" CUFFE PARADE, COLABA, MUMBAI, MAHARASHTRA - 400005, INDIA |
B79008140 |
|
4 |
10390692 |
07/12/2012 |
5,500,000,000.00 |
SBICAP TRUSTEE COMPANY LIMITED |
202, MAKER TOWER, E CUFFE PARADE, COLABA, MUMBAI, MAHARASHTRA - 400005, INDIA |
B63619084 |
|
5 |
10376091 |
14/05/2013 * |
15,000,000,000.00 |
IDBI TRUSTEESHIP SERVICES LIMITED |
ASIAN BLDG., GROUND FLOOR, 17, R.KAMANI MARG, BA LLARD ESTATE, MUMBAI, MAHARASHTRA - 400001, INDIA |
B78583887 |
|
6 |
10372704 |
14/05/2013 * |
15,000,000,000.00 |
IDBI TRUSTEESHIP SERVICES LIMITED |
ASIAN BLDG., GROUND FLOOR, 17, R.KAMANI MARG, BA LLARD ESTATE, MUMBAI, MAHARASHTRA - 400001, INDIA |
B78582681 |
|
7 |
10360308 |
14/05/2013 * |
30,000,000,000.00 |
IDBI TRUSTEESHIP SERVICES LIMITED |
ASIAN BLDG., GROUND FLOOR, 17, R.KAMANI MARG, BALLARD ESTATE, MUMBAI, MAHARASHTRA - 400001, INDIA |
B78581881 |
|
8 |
80059220 |
09/12/2004 |
1,000,000,000.00 |
BANK OF MAHARASHTRA |
LOK MANGAL, 1501, SHIVAJI NAGAR, PUNE, MAHARASHTRA - 411005, 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,
MAHAR |
- |
|
10 |
90218478 |
24/12/2003 * |
1,000,000,000.00 |
STATE BANK OF INDIA |
SECURITIES AND SERVICES DIVISION; MUMJBAI MAIN BR., STATE BANK BUILDING; MUMBAI SAMACHAR MARG, BOMBAY, MAHARASHTRA - 400023, INDIA |
- |
* Date of charge modification
CONTINGENT
LIABILITIES:
(Rs. in millions)
|
PARTICULARS |
31.03.2014 |
|
|
|
|
Claims against the Company not acknowledged as debt: Following demands are disputed by the Company and are not provided for: |
|
|
Demand of interest on past dues of the Aluminium Regulation Account up to 31st December, 1987 * The demand is in dispute with the Controller of Aluminium Regulation Account. |
63.300 |
|
Retrospective Revision of Water Rates by UP Jal Vidyut Nigam Limited (April 1989 to June 1993 and January 2000 to January 2001). * Writ petition pending with Lucknow Bench of Allahabad High Court. The demand for arrears stayed vide order dated 11/05/2001. |
40.800 |
|
Transit fees levied by Divisional Forest officer, Renukoot, on Coal and Bauxite. * Appeal pending with the Hon’ble High Court of Allahabad, and payment of Transit Fee has been stayed. According to the legal opinion received by the Company, the Forest Department has no authority to levy such fees. The Company has fi led a transfer application before the Hon’ble Supreme Court. The Hon’ble Supreme Court of India on while issuing notice on our Transfer Petition stayed the further proceedings of the Company’s Writ Petition pending before the Hon’ble Allahabad High Court. |
1066.500 |
|
M.P. Transit Fee on Coal demanded by Northern Coal Fields Limited. * The Company had challenged the demand towards MP Transit Fee on Coal and fi led Writ Petition before the Hon’ble Jabalpur High Court. The Hon’ble High Court has struck down the levy and also ordered for refund of the amount paid under protest. The State government has fi led an Appeal against the order of the Hon’ble Supreme Court of India, and the Hon’ble High Court’s order has been stayed. The Counter affidavit in the matter has been filed. The rejoinder has also been fi led by the state. To be listed along with the similar matter before the Supreme Court of India. |
237.700 |
|
Imposition of Cess on Coal by Shaktinagar Special Area Development Authority. * The Writ pending before Allahabad High Court, Allahabad. Demand and levy stayed. However, the Company has moved a transfer petition before the Hon’ble Supreme Court for tagging the matter with CA No. 1883 of 06 (ORISED Matter). The matter is tagged with ORISED and to be heard by the Nine Judges Bench of the Hon’ble Supreme Court. |
111.700 |
|
Demand of Royalty on Vanadium by District Mining Officer, Lohardaga. * Appeal is pending with the Hon’ble High Court of Allahabad. The demand has been stayed on certain conditions. |
79.600 |
|
The demand of Excise Duty on gold. * Part of the demand was confirmed, against which our ROM request is pending at CESTAT. Department’s appeal is pending before the Hon’ble Supreme Court for the part of the demand and penalty that was dropped. |
1553.100 |
|
Demand raised on assessment under CST Act and UP Sales Tax Act. * Demand has been quashed at fi rst appeal and second appeal stage. However, Dept. has gone in the revision before the Hon’ble High Court. Allahabad. |
63.900 |
|
Revision of surface rent on land by the Government of Jharkhand, w.e.f. 16th June, 2005. * Matter is in dispute at the Hon’ble High Court of Jharkhand. |
261.800 |
|
Demand made by Nayab Tehsildar Kusmi/Collector under Chhattisgarh as per Adhosanrachna Vikas evam Parayavaran Upkar Adhiniyam, 2005 @ 5% as environment tax on royalty plus 5% as development tax. * The Writ petition, which has been fi led by the Company before the Hon’ble High Court of Chhattisgarh at Bilaspur, has been transferred to the Hon’ble Supreme Court and tagged with other Civil Appeals. |
66.000 |
|
Service tax paid on Goods Transport Agency and Business Auxiliary Services. * Commissioner has confirmed the demand. Appeal is being filed at CESTAT New Delhi. |
112.700 |
|
M.P. Transit Fee on Bauxite Company has fi led Writ Petition before the Hon’ble Jabalpur High Court. The Hon’ble High Court has struck down the levy and also ordered for refund of the amount paid under protest. The State government has filed an appeal against the order of the Hon’ble High court. |
13.000 |
|
Demand for Entry Tax relating to valuation dispute of 2004-05 to 2005-06, for which appeals have been fi led. 1.18 1.18 * Appeal has been filed with Additional CCT, Sambalpur. |
11.800 |
|
CST demand on reopening of assessments for 1999-00 to 2003-04. * Appeals have been filed. |
88.100 |
|
Demand of penalty on excess CENVAT Credit taken. * Appeal is pending with CESTAT, Mumbai. |
10.900 |
|
Demand for Sales Tax u/s 15B for AYs 2001-02 and 2002-03. * Appeal is pending with J.C. Appellate Authority, Baroda. |
79.600 |
|
Service Tax on insurance policy attributable to Renusagar. * Commissioner has confirmed the demand. Appeal is pending before the CESTAT, New Delhi. |
39.700 |
|
Disallowance of CENVAT credit. * The matter is pending with CESTAT, Ahmedabad. |
52.900 |
|
Demand raised on assessment under CST Act and APGST Act for various years. * Appeals have been fi led with appropriate authorities. |
57.700 |
|
Demand for Service Tax on Consulting Engineer Services and Scientific and Tech Service. * Appeal is pending with Commissioner (Appeals), Ahmedabad. |
38.400 |
|
Excise Duty on Dross. * Company has challenged the letter issued by Excise Department to pay Excise Duty on Dross before the Hon’ble Allahabad High Court. |
197.800 |
|
Alleged CENVAT taken without receipt of Alumina Hydrate inside the factory. * Appeal fi les with Hon’ble CESTAT. |
34.600 |
|
Alleged CENVAT availed on the Input services at captive Mines. Appeal is pending with CESTAT. |
360.500 |
|
CENVAT of Service Tax Credit availed on Supplementary Invoices. * Pending with appropriate Authority. |
31.200 |
|
Clearence of Silver at Nil Rate of Duty under Notifi cation No. 5/2006 * Appeal pending before CESTAT. |
89.600 |
|
Excess rebate has been sanctioned to the extent duty paid by supplementary invoices * Appeal is pending with Commissioner of Customs (Appeals), Mumbai. |
50.800 |
|
Disallowance of CENVAT on input services. * Pending with appropriate Authority. |
67.900 |
|
Parallel operation charges on capacity of Captive Power Plant by Madhya Pradesh Electricity Regulatory Commission. * Matter is pending before the Hon’ble High Court of Madhya Pradesh at Jabalpur. The Hon’ble High Court passed an order on 20.9.2013 and stayed the operation of order passed by MPERC subject to deposit of 50% of the amount. |
70.500 |
|
Other Contingent Liabilities in respect of Excise, Customs, Sales Tax etc., each being for less than Rs.10.0000 Millions. * The demands are in dispute at various legal forums. |
155.100 |
|
Total |
5107.200 |
|
(b) Corporate Guarantees Outstandings (Rs.52464.700 Millions * (Previous year Rs.4484.200 Millions) given on behalf of subsidiary companies) * Includes Rs.50000.000 Millions given to lender against loan provided to a subsidiary company, amount of loan outstanding as on 31st March 2014, is Rs.4,950. |
52870.300 |
|
|
|
|
Other money for which the Company is contingently liable: |
|
|
Bills Discounted with Banks |
35.300 |
|
Customs Duty on Capital Goods and Raw Materials imported under EPCG Scheme/Advance License, against which export obligation is to be fulfilled (excluding cenvatable portion). |
3685.100 |
|
The Company has received a notice dated 24th March, 2007, from Collector (Stamp), Kanpur, Uttar Pradesh, alleging that stamp duty of Rs.2529.600 Millions is payable in view of order dated 18th November, 2002, of the Hon’ble High Court of Allahabad approving scheme of arrangement for merger of Copper business of Indo Gulf Corporation Limited with the Company. The Company is of the opinion that it has a very strong case as there is no substantive/computation provision for levy/calculation of stamp duty on court order approving scheme of arrangement under Companies Act, 1956, within the provisions of Uttar Pradesh Stamp Act. Moreover the properties in question are located in the State of Gujarat and thus the Collector (Stamp), Kanpur, has no territorial jurisdiction to make such a demand. It is pertinent to note that the Company in 2003-04 has already paid stamp duty which has been accepted as per the provisions of the Bombay Stamp Act 1958 with regard to transfer of shareholding of Indo Gulf Corporation Limited as per the Scheme of Arrangement. Furthermore, the demand made is on an incorrect assumption. The Company’s contention amongst the various other grounds made is that the demand is illegal, against the principles of natural justice, incorrect, bad in law and mala fide. The Company has fi led a writ petition before the Hon’ble High Court of Allahabad, inter alia, on the above said grounds, which is pending determination. |
|
|
Against the notifications issued by the State Electricity Regulatory Commissions of Uttar Pradesh, Odisha and Madhya Pradesh states under the provisions of Electricity Act, 2003, in respect of Renewable Purchase Obligation (RPO), the Company has fi led writ petitions before the jurisdictional high courts on the ground, inter alia, hat RPO cannot be made applicable to captive users and the High Court(s) at Allahabad, Cuttack and Jabalpur have granted stay on the applicability of the RPO. Further, the Company has received favorable order from the Appellate Authority and Uttar Pradesh Regulatory Commission on applicability of RPO to units with Co-generation facility. In view of pending writ petitions and favourable order obtained from Appellate Authority, no provision has been considered necessary at this stage. |
|
|
The assessing officer, while framing the assessment for AYs 2008-09, 2009-10 and 2010-11, has made adjustment, inter alia, amounting to Rs.2703.200 Millions, Rs.10638.900 Millions and Rs.3161.000 Millions to total income of respective assessment years on account of purported arms’ length fee for corporate guarantee provided to foreign banks for granting loan to a wholly owned subsidiary of the Company, viz., AV Minerals (Netherlands) N.V. The Company has fi led appeals against these orders. The Company has been advised that, considering the facts of the case, no provision is necessary for these adjustments. |
|
FIXED ASSETS
Tangible Assets
· Leasehold Land
· Freehold Land
· Buildings
· Plant and Equipment
· Furniture and Fixtures
· Vehicles and Aircraft
· Office Equipment
· Railway Sidings
Intangible Assets
· Mining Rights
· Computer Software
· Technology
STATEMENT OF STANDALONE UNAUDITEDRESULTS FOR THE YEAR ENDED
30.06.2014
(Rs. In Millions)
|
|
Quarter Ended |
|
30.06.2014 (unaudited) |
|
|
1.
Income from operations |
79961.400 |
|
a) Net sales/ Income from operation (net of excise duty) |
79305.500 |
|
b) Other operating income |
655.900 |
|
Total
income from Operations(net) |
74347.900 |
|
2.Expenditure |
|
|
a) Cost of material consumed |
51394.900 |
|
b) Purchases of stock in trade |
0.000 |
|
c) Changes in inventories of finished goods,
work-in-progress and stock-in-trade |
69.400 |
|
d) Employees benefit expenses |
3481.500 |
|
e) Power and fuel |
11368.300 |
|
f) Depreciation and amortization expenses |
1870.600 |
|
g) Other expenditure |
6163.200 |
|
3. Profit from operations before other income and
financial costs |
5613.500 |
|
4. Other income |
2163.000 |
|
5. Profit from ordinary activities before finance costs |
776.500 |
|
6. Finance costs |
3375.600 |
|
7. Profit before exceptional Items and Tax |
4400.900 |
|
6. Exceptional Items |
0.000 |
|
9. Profit before tax |
400.900 |
|
10.Tax expenses |
1125.900 |
|
11.Net
Profit for the Period |
3275.000 |
|
14.Paid-up
equity share capital (Nominal value Re. 1/- per share) |
2064.900 |
|
ii) Earnings per share (after extraordinary items) |
|
|
(a) Basic and diluted |
1.59 |
|
|
1.59 |
|
A. Particulars of shareholding |
|
|
1. Public Shareholding |
|
|
- Number of shares |
1143504646 |
|
- Percentage of shareholding |
55.39% |
|
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 |
|
Percentage of shares (as a % of total shareholding of the
promoter and promoter group) |
100.00% |
|
Percentage of shares (as a % of total share capital of the
company) |
36.99% |
|
*Excludes shares represebted by Global Depository
Receipts. |
|
|
B.
Investor Complaints |
|
|
Pending at the beginning of the quarter |
NIL |
|
Receiving during the quarter |
2 |
|
Disposed of during the quarter |
2 |
|
Remaining unreserved at the end of the quarter |
Nil |
UNAUDITED SEGMENT WIE REVENUE, RESULTS AND CAPITAL EMPLOYED
(Rs. In Millions)
|
Particulars |
Quarter
Ended 30.06.2014 (unaudited) |
|
|
|
|
1.
Segment Revenue |
|
|
a. Aluminium |
30113.000 |
|
b. Copper |
4902.900 |
|
Total |
80015.900 |
|
Less : Inter Segment Revenue |
(54.500) |
|
Net
Sales |
79961.400 |
|
|
|
|
2.
Segment Result |
|
|
a. Aluminium |
3199.000 |
|
b. Copper |
3167.800 |
|
Total |
6366.800 |
|
Less
: Finance Costs |
(3375.600) |
|
|
2991.200 |
|
Add : Other unallocated Income of
unallocated Expenses |
1409.700 |
|
Profit
before Exceptional Items and Tax |
4400.900 |
|
Exceptional
Items |
0.000 |
|
Profit
before Tax |
4400.900 |
|
3.
Capital Employed |
|
|
a. Aluminium |
367906.100 |
|
b. Copper |
54859.800 |
|
|
422765.900 |
|
Unallocated/ Corporate |
241576.400 |
|
Total
Capital Employed |
664342.300 |
STANDALONE STATEMENT OF ASSETS AND
LIABILITIES
(Rs. In Millions)
|
SOURCES OF FUNDS |
30.06.2014 (Unaudited) |
|
I.
EQUITY
AND LIABILITIES |
|
|
(1)Shareholders' Funds |
|
|
(a) Share Capital |
2064.900 |
|
(b) Reserves & Surplus |
35188.500 |
|
Total
Shareholders’ Funds |
37253.400 |
|
|
|
|
(2)
Non-Current Liabilities |
|
|
(a) long-term borrowings |
226413.200 |
|
(b) Deferred tax liabilities (Net) |
12573.600 |
|
(c) Other long term liabilities |
6853.400 |
|
(d) long-term provisions |
3452.100 |
|
Total Non-current Liabilities (3) |
249292.300 |
|
|
|
|
(3) Current Liabilities |
|
|
(a) Short term borrowings |
50644.300 |
|
(b) Trade payables |
41696.400 |
|
(c) Other current
liabilities |
28474.100 |
|
(d) Short-term provisions |
10205.200 |
|
Total Current Liabilities (4) |
131020.000 |
|
|
|
|
TOTAL |
747565.700 |
|
|
|
|
II.
ASSETS |
|
|
(1) Non-current assets |
|
|
(a) Fixed Assets |
357911.800 |
|
(b) Non-current Investments |
155668.300 |
|
(c) Deferred tax assets (net) |
0.000 |
|
(d) Long-term Loan and Advances |
12890.600 |
|
(e) Other Non-current assets |
245.500 |
|
Total Non-Current Assets |
526716.200 |
|
|
|
|
(2) Current assets |
|
|
(a) Current investments |
63946.700 |
|
(b) Inventories |
86821.800 |
|
(c) Trade receivables |
17088.200 |
|
(d) Cash and cash
equivalents |
15733.100 |
|
(e) Short-term loans and
advances |
31186.000 |
|
(f) Other current assets |
6073.700 |
|
Total Current Assets |
220849.500 |
|
|
|
|
TOTAL |
747565.700 |
NOTE:
An Extra Ordinary General Meeting of shareholders has been scheduled later today to approve, inter alia, issuance of securities for an aggregate amount not exceeding Rs, 50000.000 Millions in one or more tranches subject to approval of any other relevant authorities.
In compliance with Schedule II of the Companies Act, 2013 requiring companies
to change manner of calculation of depreciation w.e.f. April 01, 2014, the
Company has revised useful life of certain assets to bring it in line with the
Schedule. As a result, Depreciation and Amortisation of the quarter is lower by
Rs. 1450.000 Millions. Additionally, Rs. 570.000 Millions (net of deferred tax
of 30 crore) has been recognised in the opening balance of retained earnings in
respect of assets whose life has got exhausted as on April 01, 2014 as per the
revised useful life.
Following a prolonged power outage in early July due to external grid failure
and torrential rain, smelting operations at Aditya Aluminium, Odisha were
affected. Similarly in early August due to torrential rain the smelting
operation at Hirakud, Odisha were also affected. Efforts are on to restore
normalcy at the both the locations.
The above results have been reviewed by the Audit Committee and approved at the
meeting of the Board of Directors held on August 14, 2014. Limited Review has
been carried out by the statutory auditors of the Company.
Figures of previous periods have been regrouped / reclassified wherever
necessary.
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] on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l Anti-Money
Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent
government authority for any violation of anti-corruption laws or international
anti-money laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws, regulations
or policies that prohibit, restrict or otherwise affect the terms and
conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.60.92 |
|
|
1 |
Rs.98.66 |
|
Euro |
1 |
Rs.78.64 |
INFORMATION DETAILS
|
Information
Gathered by : |
NYA |
|
|
|
|
Analysis Done by
: |
KAR |
|
|
|
|
Report Prepared
by : |
KVT |
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.