MIRA
INFORM REPORT
|
Report Date : |
15.09.2014 |
IDENTIFICATION DETAILS
|
Name : |
ESSAR STEEL INDIA LIMITED (w.e.f.18.01.2012) |
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Formerly Known
As : |
ESSAR STEEL LIMITED |
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Registered
Office : |
27Km., |
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Country : |
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Financials (as
on) : |
31.03.2013 |
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Date of
Incorporation : |
01.06.1976 |
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Com. Reg. No.: |
04-013787 |
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Capital
Investment / Paid-up Capital : |
Rs.28418.000 Millions |
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CIN No.: [Company Identification
No.] |
U27100GJ1976FLC013787 |
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TAN No.: [Tax Deduction &
Collection Account No.] |
SRTE00025E |
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PAN No.: [Permanent Account No.] |
AAACE1741P |
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Legal Form : |
A Closely Held Public Limited Liability Company |
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Line of Business
: |
Manufacturing and Selling of Steel Products. |
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No. of Employees
: |
Not Divulged |
RATING & COMMENTS
|
MIRA’s Rating : |
B (29) |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Status : |
Moderate |
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Payment Behaviour : |
Slow |
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Litigation : |
Exist |
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Comments : |
Subject is a part of “Essar Group”. It is an established company having moderate track record. The company possesses a weak financial profile marked by consecutive
losses which has further deteriorated the position of reserves during 2013. The rating take into consideration the liquidity pressures faced due
to extraneous challenges impacting in running of steel plant. However, the
infusion of funds from the part of promoters has slightly eased the liquidity
position and in turn has nurtured the gradual improvement in its ongoing
financing exercise. Trade relations are fair. Business is active. Payment terms are
reported as slow. In view of support from its group company, the subject can be
considered for business dealings with great caution. |
NOTES:
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – June 1, 2014
|
Country Name |
Previous Rating (31.03.2014) |
Current Rating (01.06.2014) |
|
India |
A1 |
A1 |
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Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
INDIAN ECONOMIC OVERVIEW
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
|
Rating Agency Name |
CARE |
|
Rating |
Long Term Bank Facilities = C |
|
Rating Explanation |
Have very high risk of default. |
|
Date |
24.10.2013 |
RBI DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available RBI Defaulters’ list.
EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of
31-03-2012.
INFORMATION DENIED
Management Non Co-operative (91-261-2872400)
LOCATIONS
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Registered Office/ Plant 1 : |
27Km., Surat Hazira Road, Hazira, Surat – 394270, Gujarat, India |
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Tel. No.: |
91-261-2872400/ 6682400 |
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Fax No.: |
91-261-2872400/ 6682796/ 6685731 |
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E-Mail : |
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Website : |
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Corporate Office : |
Essar House, 11, Keshavrao Khadye Marg, Mahalaxmi, Mumbai – 400034,
Maharashtra, India |
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Tel. No.: |
91-22-66601100 / 24950606 |
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Fax No.: |
91-22-24928896 |
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Marketing and Sales Office : |
6th Floor, Tower-2, Equinox Business Park (Peninsula Techno
Park) Off Bandra Kurla Complex, LBS Marg, Kurla (West), Mumbai – 400070,
Maharashtra, India |
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Tel. No.: |
91-22-67335000 |
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Fax No.: |
91-22-67082189 |
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E-Mail : |
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Plant 2 : |
Vishakhapatnam Scindia Road, Near Flyover, Visakhapatnam – 530004, Andhra Pradesh,
India |
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Tel. No.: |
91-891-2523213 |
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Fax No.: |
91-891-2559383/ 2556907 |
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Processing and
Distribution Facility Network : |
Gat No - 437 and 442, Golechiwadi, Ambi-Nigade Road, MIDC-Talegaon, Pune - 410507, Maharashtra, India |
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Tel. No.: |
91-211-4661401 |
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Overseas Offices [Plants] : |
Located at ·
Canada ·
Indonesia ·
United Kingdom ·
United Arab Emirates ·
Germany ·
China |
DIRECTORS
As on 31.03.2013
|
Name : |
S. N. Ruia |
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Designation : |
Chairman (upto 07.08.2013) |
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Name : |
Jatinder Mehra |
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Designation : |
Director |
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Name : |
V. G. Raghavan |
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Designation : |
Director |
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Name : |
S. V. Venkatesan |
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Designation : |
Director (upto 29.05.2013) |
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Name : |
K. V. Krishnamurthy |
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Designation : |
Director (upto 14.11.2012) |
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Name : |
Jitender Balakrishnan |
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Designation : |
Director (upto 29.05.2013) |
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Name : |
Rana Som |
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Designation : |
Director |
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Name : |
S
Santhanakrishnan |
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Designation : |
Nominee Director
(SBI) (w.e.f. 12.03.2013) |
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Name : |
Arvind Pande
(w.e.f. 29.05.2013) |
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Designation : |
Director |
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Name : |
S. S. Kohli
(w.e.f. 29.05.2013) |
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Designation : |
Director |
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Name : |
S. R. Jain
(w.e.f. 29.05.2013) |
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Designation : |
Director |
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Name : |
Alok Dhir
(w.e.f. 29.05.2013) |
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Designation : |
Director |
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Name : |
Dilip Oommen |
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Designation : |
Managing
Director and CEO |
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Name : |
Amit Agarwal |
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Designation : |
Director
(Finance) (up to 08.11.2012) |
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Name : |
Alok Gupta |
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Designation : |
Director
(Marketing) |
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Name : |
Ashutosh Agarwala |
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Designation : |
Director (Finance) (w.e.f. 29.05.2013) |
KEY EXECUTIVES
|
Name : |
Rakesh Darji Company Secretary |
|
Designation : |
Company Secretary |
SHAREHOLDING PATTERN
SHARE HOLDING PATTERN DETAILS ARE NOT AVAILABLE
BUSINESS DETAILS
|
Line of Business : |
Manufacturing and Selling of Steel Products. |
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Products : |
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PRODUCTION STATUS (AS ON 31.03.2011)
Licensed Capacity - *
Installed Capacity
(as certified by the management) per annum
|
Particulars |
Unit |
31.03.2011 |
|
|
MT |
8000000 |
|
Hot Briquette Iron / Direct Reduced Iron (Trial Run 17,00,000 MT) |
|
6700000 |
|
Hot Metal (Under Trial run) |
MT |
1730000 |
|
Hot Rolled Coil |
MT |
3600000 |
|
Cold Rolled Coil |
MT |
2110000 |
|
Colour Coating |
MT |
400000 |
|
Plates |
MT |
1500000 |
|
Pipes (Including Capacity of L-Saw Plant under Trial Run 325,000 MT) |
MT |
600000 |
PRODUCTION
|
Particulars |
Unit |
31.03.2011 |
|
|
MT |
5081082 |
|
Hot Briquette
Iron / Direct Reduced Iron (Including trial run production of 411,782 MT) |
MT |
4237809 |
|
Hot Metal (Under Trial Run) |
MT |
373354 |
|
Hot Rolled Coils/Cold Rolled Coils/ Plates |
MT |
3217932 |
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Plates (Including trial run production of 77,910 MT) |
MT |
366606 |
|
Pipes (Including trial run production of L-Saw 24,503 MT) |
MT |
101803 |
* Not applicable in terms of Government of India's Notification No. S.O.477 (E) dated 25th July, 1991.
** Includes production of Pellets on Job Work Basis of
172882 MT
GENERAL INFORMATION
|
No. of Employees : |
Not Divulged |
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Bankers : |
·
Allahabad Bank ·
Axis Bank Limited ·
Bank of Baroda ·
Bank of India ·
Canara Bank ·
Central Bank of India ·
Corporation Bank ·
Export Import Bank of India ·
HDFC Bank Limited ·
ICICI Bank Limited ·
IDBI Bank Limited ·
Indian Overseas Bank ·
Punjab National Bank ·
State Bank of Bikaner and Jaipur ·
State Bank of Hyderabad ·
State Bank of India ·
State Bank of Mysore ·
State Bank of Patiala ·
Syndicate Bank ·
The Federal Bank Limited ·
The Jammu and Kashmir Bank Limited ·
UCO Bank ·
Union Bank of India ·
Yes Bank Limited |
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Facilities : |
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Banking
Relations : |
-- |
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Auditors : |
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Name : |
Deloitte Haskins and Sells, Chartered Accountants |
|
Address : |
Heritage, 3rd Floor, Near Gujarat-Vidhyapith, Off Ashram Road,
Ahmedabad – 380 014, Gujarat, India |
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Holding Company : |
·
Essar Steel Asia
Holdings Limited (FKA Essar Resources Mauritius Limited) Immediate Holding
Company- (ESAHL) (w.e.f. 29.06.2012) ·
Essar Steel
Mauritius Limited - Holding Company of Essar Steel Asia Holdings Limited -
(ESML) ·
Essar Steel
Limited - Mauritius - Immediate Holding Company (ESTLM) (upto 28.06.2012) · Essar Global Fund Limited (FKA Essar Global Limited) |
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Subsidiaries : |
·
Essar Steel
Middle East FZE (ESMEF) ·
Essar Steel
Trading FZE (ESTF) ·
Essar Steel
Offshore Limited. (ESOSL) ·
Essar Steel
Overseas Limited. (ESOL) ** ·
Trinity Coal
Marketing LLC (EMA) * ·
Essar Minerals
Limited (FKA Essar Mining Limited) * ·
Essar Mineral
Cooperatief U.A. * ·
Essar Minerals
Canada Limited * ·
Essar Minerals
INC * ·
Trinity Parent
Corporation * ·
Trinity Coal
Corporation * ·
Trinity Coal
Partners LLC * ·
Bear Fork
Resources LLC * ·
Deep Water
Resources LLC * ·
Levisa Fork
Resources LLC * ·
North Springs
Resources LLC * ·
Little Elk Mining
Company LLC * ·
Banner Coal
Terminal LLC * ·
Hughes Creek
terminal LLC * ·
Frasure Creek
Mining LLC * ·
Falcon Resources
LLC * ·
Prater Branch
Resources LLC * ·
Trinity RMG
Holding LLC * ·
RMG INC * *These companies are subsidiaries of a
wholly owned subsidiary of the Company ** Liquidated w.e.f. 13.09.2012 |
|
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Fellow Subsidiaries : |
·
Aegis Limited (AEGIS) ·
Essar Power(Jharkhand)Limited.(EPJL) ·
Essar Africa Holdings Limited. (EAHL) ·
Essar Bulk Terminal Paradeep Limited. (EBTPL) ·
Essar Electric Power Development Corporation Limited
(EEPDCL) ·
Essar Logistics Limited. (ELL) ·
EssarMineral Resources Limited. (EMRL) ·
EssarOffshore Subsea Limited. (EOSL) ·
Essar Oil Limited. (EOL) ·
Essar Port Limited (EPL) ·
EssarSteel Algomalnc.(ESA-INC) ·
Essar Steel Processing & Distribution UK Ltd.
(ESPD UK) ·
PT Essarlndonesia(PTEI) ·
Vadinar Oil Terminals Limited. (VOTL) ·
Vadinar Power Company Limited. (VPOCL) ·
AgcNetworksLimited (Formally Avaya Global) (AGCNL) ·
Equinox Business Parks Private Limited (EBPPL) ·
Essar Bulk
Terminal (Salaya) Limited (EBTSL) ·
Essar Oilfields
Services Limited (EOSPL) ·
Essar Power (M P)
Limited. (EPMPL) ·
Essar Power
Gujarat Limited. (EPGL) ·
Essar Project
Management Consultant Limited. (EPMCL) ·
Essar Projects
(India) Limited. (EPIL) ·
Essar Shipping
Limited (ESL) ·
Essar Paradeep
Terminals Limited (EPTL) ·
Navabharat Power
Private Limited (NPPL) ·
Peak Trading Overseas
Limited (PTOL) ·
Vadinar Ports and
Terminals Limited (VPTL) ·
Essar Steel
Limited - Mauritius (ESTLM) (w.e.f. 29.06.2012) |
|
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|
Associates : |
·
Bhander Power Limited. (BPOL) ·
Essar Bulk Terminal Limited. (EBTL) ·
Essar Power (Orissa) Limited. (EPOL - Orissa) ·
Essar Power Hazira Limited (EPHL) ·
Essar Power Limited. (EPOL) ·
Essar Steel Processing FZCO (ESP-FZCO) |
|
|
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|
Companies in which Promoters had significant influence/ Control : |
·
Essar Steel Chhattisgarh Limited. (ESCL) ·
Essar Steel Jharkhand Limited. (ESJL) ·
Essar Teleholding Limited. (ETHL) ·
Futura Travels Limited. (FTL) ·
Global Supplies (UAE) FZE (GS) ·
Imperial Consultants and Securities Private Limited
(ICSL) ·
India Securities Limited. (ISL) ·
Kartik Estates Private Limited. (KEPL) ·
Kroner Investment Limited. (KIL) ·
NewAmbi Trading & Investments Private Limited
(NATIPL) ·
Prajesh Investments Private Limited. (PIPL) ·
Prajesh Marketing Limited. (PML) ·
The Mobilestore Limited. (TML) ·
Tirunelveli Wind Farms Limited (TWFL) ·
Essar Procurement Services Limited (EPSL) ·
Essar Properties Limited. (EPRL) ·
Essar Agrotech Limited. (EAL) ·
Essar Education Limited (EEL) ·
Clickforsteel Services Limited (CFSL) ·
Downtown Securities Private Limited (DTSPL) ·
Bhargava Estates Private Limited (BEPL) ·
Essar House Limited. (EHL) ·
Essar Information Technology Limited. (EITL) ·
Essar Infrastructure Services Limited. (EISL) ·
Essar Investments Limited. (EIL) ·
Ajitesh Estates Private Limited (AEPL) ·
Arkay Holdings Limited. (AHL) ·
Arkay Sea Logistics Limited (ASLL) ·
Essar Services India Limited (ESIL) ·
Essar SEZ Hazira Limited (ESEZHL) # These Companies ceased to
be related party w.e.f. 01.04.2012 as the Promoters do not have any
significant influence on the Company |
CAPITAL STRUCTURE
AFTER 31.03.2013
Authorised Capital : Rs.72750.000 Millions
Issued, Subscribed & Paid-up Capital : Rs.28685.503
Millions
As on 31.03.2013
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
7175000000 |
Equity Shares |
Rs.10/- each |
Rs.71750.000 Millions |
|
100000000 |
10% Cumulative Redeemable Preference Shares |
Rs.10/- each |
Rs.1000.000 Millions |
|
|
Total |
|
Rs.72750.000
Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
2797534656 |
Equity Shares |
Rs.10/- each |
Rs.27975.347 Millions |
|
43598951 |
10% Cumulative Redeemable Preference Shares |
Rs.10/- each |
Rs.435.990 Millions |
|
4520703 |
Add: Equity Shares Forfeited |
|
Rs.6.700 Millions |
|
|
Total |
|
Rs.28418.037
Millions |
a)
Reconciliation of number of shares and amount
outstanding at the beginning and at the end of the Reporting period:
|
Particulars |
Number |
Rs. In Millions |
|
Equity Shares |
|
|
|
At the beginning of the year |
2626837822 |
26268.378 |
|
Issued during the year |
170696834 |
1706.968 |
|
Outstanding at the end of the year |
2797534656 |
27975.346 |
|
Preference Shares |
|
|
|
At the beginning of the year |
43598951 |
435.990 |
|
Outstanding at the end of the year |
43598951 |
435.990 |
b)
Rights, preferences and restrictions attached to
shares Equity Shares
The
Company has one class of Equity Shares having face value of Rs. 10 per share.
Every shareholder is entitled to one vote for every one share held. In the
event of liquidation, the equity share holders shall be entitled to receive
remaining assets of the Company after distribution of all dues in proportion to
their shareholdings.
Cumulative Redeemable Preference Shares
(CRPS)
The Company has issued
43,598,951 10% CRPS of Rs. 10 each. Each CRPS is redeemable at par in 12 equal
monthly installments commencing from 01st October, 2017 to 01st
September, 2018. The Company shall have option to redeem the CRPS at par in one
or more tranches from any or all of the existing holders, anytime after the
date of allotment together with arrears of dividend if any and the Board shall
give one month's notice for any such redemption to the registered holders of
the CRPS.
c)
Shares held by Holding Company
Out of above equity shares, 1,976,845,435
equity shares are held by Essar Steel Asia Holdings Limited, Mauritius
(Previous year 1,914,195,440 equity shares are held by Essar Steel Limited,
Mauritius) the holding Company.
d)
Details of shareholders holding more than 5% shares
in the Company
|
Particulars |
Number |
% of Holding |
|
Equity Shares |
|
|
|
Essar Steel Asia Holdings Limited1 |
1976845435 |
70.66 |
|
Essar Steel Limited, Mauritius1 |
118902096 |
4.25 |
|
Imperial Consultants & Securities
Private Limited 1.2 |
421760954 |
15.08 |
|
Shares under Trust (Venkatraman Govind
Raghavan) |
191517500 |
6.85 |
|
|
2709025985 |
96.84 |
·
Number of shares
includes 1,911,568,602 shares acquired from Essar Steel Limited, Mauritius and
10,855,257 shares from Imperial Consultants and Securities Private Limited, for
which transfer of shares in demat account is pending and in respect of such
shares Essar Steel Asia Holdings Limited (ESAHL) has made necessary declaration
under Section 187C of the Companies Act, 1956 regarding beneficial ownership of
such shares.
·
As per the Scheme
of Arrangement (SOA) between Essar Investment Limited (EIL) and Imperial
Consultants and Securities Private Limited (Imperial) sanctioned by the Hon'ble
High Court at Mumbai vide order dated 20th January, 2012 and by
Madras High Court vide order dated 5th March, 2012, Investment and
Finance Division of EIL has been demerged into Imperial. In terms of said SOA,
assets and liabilities of Investment Division of EIL stood transferred in the
books of Imperial with effect from 30th March, 2012. However,
pending completion of required formalities for transfer of shares, name of EIL
is appearing in the register of members of the Company. Company has received a
declaration from EIL and Imperial under section 187C of the Companies Act, 1956
regarding beneficial ownership of the said shares.
|
Particulars |
31.03.2013 |
|
|
|
Number |
% of Holding |
|
Preference Shares |
|
|
|
IFCI Limited |
22116599 |
50.73 |
|
Imperial Consultants and
Securities Private Limited |
16940180 |
38.85 |
|
ICICI Bank Limited |
-- |
-- |
|
|
39056779 |
89.58 |
e)
Aggregate number of Bonus Shares issued, shares
issued for consideration other than cash and shares bought back during the
period of five years :
|
Particulars |
31.03.2013 |
|
Equity
Shares allotted as fully paidup pursuant to scheme of Amalgamation |
1073249784 |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
|
31.03.2013 |
31.03.2012 |
|
I.
EQUITY
AND LIABILITIES |
|
|
|
|
(1)Shareholders' Funds |
|
|
|
|
(a) Share Capital |
|
28418.000 |
26711.100 |
|
(b) Reserves & Surplus |
|
42617.100 |
63823.500 |
|
(c) Money
received against share warrants |
|
0.000 |
0.000 |
|
|
|
|
|
|
(2) Share Application money pending allotment |
|
0.000 |
0.000 |
|
Total
Shareholders’ Funds (1) + (2) |
|
71035.100 |
90534.600 |
|
|
|
|
|
|
(3)
Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
|
228179.200 |
166645.400 |
|
(b) Deferred tax liabilities (Net) |
|
0.000 |
0.000 |
|
(c) Other long term liabilities |
|
1622.900 |
1909.900 |
|
(d) long-term provisions |
|
6559.400 |
4581.400 |
|
Total Non-current Liabilities (3) |
|
236361.500 |
173136.700 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a) Short term borrowings |
|
42871.000 |
76614.000 |
|
(b) Trade payables |
|
76458.300 |
43870.500 |
|
(c) Other current
liabilities |
|
50425.000 |
39178.200 |
|
(d) Short-term provisions |
|
731.800 |
4258.700 |
|
Total Current Liabilities (4) |
|
170486.100 |
163921.400 |
|
|
|
|
|
|
TOTAL |
|
477882.700 |
427592.700 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i) Tangible assets |
|
287660.800 |
205879.400 |
|
(ii) Intangible Assets |
|
190.500 |
222.100 |
|
(iii) Capital
work-in-progress |
|
60047.700 |
112951.700 |
|
(iv) Intangible assets under
development |
|
0.000 |
0.000 |
|
(b) Non-current Investments |
|
10333.100 |
5398.700 |
|
(c) Deferred tax assets (net) |
|
17526.600 |
3237.700 |
|
(d) Long-term Loan and Advances |
|
6851.900 |
8777.200 |
|
(e) Other Non-current assets |
|
10333.100 |
9589.700 |
|
Total Non-Current Assets |
|
392943.700 |
346056.500 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a) Current investments |
|
0.000 |
0.000 |
|
(b) Inventories |
|
38475.200 |
40446.400 |
|
(c) Trade receivables |
|
6812.700 |
5896.600 |
|
(d) Cash and cash
equivalents |
|
6231.100 |
6509.600 |
|
(e) Short-term loans and
advances |
|
28409.200 |
22502.900 |
|
(f) Other current assets |
|
5010.800 |
6180.700 |
|
Total Current Assets |
|
84939.000 |
81536.200 |
|
|
|
|
|
|
TOTAL |
|
477882.700 |
427592.700 |
|
SOURCES OF FUNDS |
|
|
31.03.2011 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
|
|
25710.000 |
|
|
2] Share Application Money (Pending Allotment) |
|
|
2482.400 |
|
|
3] Reserves & Surplus |
|
|
77329.800 |
|
|
4] (Accumulated Losses) |
|
|
0.000 |
|
|
NETWORTH |
|
|
105522.200 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
|
|
216732.300 |
|
|
2] Unsecured Loans |
|
|
7111.600 |
|
|
TOTAL BORROWING |
|
|
223843.900 |
|
|
DEFERRED TAX LIABILITIES |
|
|
607.800 |
|
|
|
|
|
|
|
|
TOTAL |
|
|
329973.900 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
|
|
102544.300 |
|
|
Capital work-in-progress |
|
|
175083.900 |
|
|
|
|
|
|
|
|
INVESTMENT |
|
|
3970.200 |
|
|
DEFERRED TAX ASSETS |
|
|
638.700 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
|
|
52225.000
|
|
|
Sundry Debtors |
|
|
5147.600
|
|
|
Cash & Bank Balances |
|
|
9210.000
|
|
|
Other Current Assets |
|
|
11296.000
|
|
|
Loans & Advances |
|
|
30251.100
|
|
Total
Current Assets |
|
|
108129.700
|
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
|
|
24331.500
|
|
|
Other Current Liabilities |
|
|
33101.200
|
|
|
Provisions |
|
|
2960.200
|
|
Total
Current Liabilities |
|
|
60392.900
|
|
|
Net Current Assets |
|
|
47736.800
|
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
|
|
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
|
|
329973.900 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
||
|
|
SALES |
|
|
|
||
|
|
|
Income |
150384.500 |
162738.700 |
123015.000 |
|
|
|
|
Other Income |
3011.600 |
5367.900 |
5260.900 |
|
|
|
|
TOTAL (A) |
153396.100 |
168106.600 |
128275.900 |
|
|
|
|
|
|
|
||
|
Less |
EXPENSES |
|
|
|
||
|
|
|
Cost of Materials Consumed |
89941.100 |
|
|
|
|
|
|
Purchase of Traded Goods |
2055.900 |
1670.300 |
|
|
|
|
|
Energy Cost |
28223.400 |
30466.800 |
|
|
|
|
|
Changes in Inventories of Finished Goods,
Work in Progress and Stock in Trade |
(270.700) |
9692.700 |
|
|
|
|
|
Employee Benefits Expenses |
3117.400 |
3899.800 |
110948.900 |
|
|
|
|
Manufacturing and Asset Maintenance |
4457.500 |
4415.800 |
|
|
|
|
|
Administrative Expenses |
2287.700 |
3562.600 |
|
|
|
|
|
Selling & Distribution Expenses |
5360.700 |
5683.100 |
|
|
|
|
|
Exchange Variation and Derivative Losses
(net) |
6589.000 |
3723.000 |
|
|
|
|
|
Exceptional Item |
13465.500 |
0.000 |
|
|
|
|
|
TOTAL (B) |
155227.500 |
152454.800 |
110948.900 |
|
|
|
|
|
|
|
||
|
Less |
PROFIT/(LOSS)
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
(1831.400) |
15651.800 |
17327.000 |
||
|
|
|
|
|
|
||
|
Less |
FINANCIAL
EXPENSES (D) |
24809.800 |
18629.900 |
12187.400 |
||
|
|
|
|
|
|
||
|
|
PROFIT/(LOSS)
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D)
(E) |
(26641.200) |
(2978.100) |
5139.600 |
||
|
|
|
|
|
|
||
|
Less |
DEPRECIATION/
AMORTISATION (F) |
15622.100 |
9863.700 |
8914.600 |
||
|
|
|
|
|
|
||
|
|
PROFIT/(LOSS)
BEFORE TAX (E-F) (G) |
(42263.300) |
(12841.800) |
(3775.000) |
||
|
|
|
|
|
|
||
|
Less |
TAX (H) |
14413.900 |
(326.200) |
2112.300 |
||
|
|
|
|
|
|
||
|
|
PROFIT/(LOSS)
AFTER TAX (G-H) (I) |
(27849.400) |
(12515.600) |
(1662.700) |
||
|
|
|
|
|
|
||
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
||
|
|
|
FOB Value of Exports |
36927.900 |
41557.500 |
20227.600 |
|
|
|
|
Others |
2472.900 |
1872.600 |
1622.200 |
|
|
|
TOTAL EARNINGS |
39400.800 |
43430.100 |
21849.800 |
||
|
|
|
|
|
|
||
|
|
IMPORTS |
|
|
|
||
|
|
|
Raw Materials |
33809.200 |
32993.200 |
8835.600 |
|
|
|
|
Production Consumables, Stores and Spares and Fuel |
6540.200 |
9387.800 |
28469.100 |
|
|
|
|
Capital Goods |
3315.500 |
3762.700 |
11199.600 |
|
|
|
|
Traded Goods |
0.000 |
17.300 |
358.300 |
|
|
|
TOTAL IMPORTS |
43664.900 |
46161.100 |
48862.600 |
||
|
|
|
|
|
|
||
|
|
Earnings Per
Share (Rs.) |
(10.59) |
(4.84) |
(0.72) |
||
KEY RATIOS
|
PARTICULARS |
|
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
PAT / Total Income |
(%) |
(18.16)
|
(7.45) |
(1.30) |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
(28.10)
|
(7.89) |
(3.07) |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
(11.34)
|
(4.46)
|
(1.79)
|
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
(0.59)
|
(0.14)
|
(0.04)
|
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt /Networth) |
|
3.82
|
2.69 |
2.12 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
0.50
|
0.50 |
1.79 |
FINANCIAL ANALYSIS
[all figures are
in Rupees Millions]
DEBT EQUITY RATIO
|
Particular |
|
31.03.2012 |
31.03.2013 |
|
|
|
(Rs.
In Millions) |
(Rs.
In Millions) |
|
Share Capital |
|
26711.100 |
28418.000 |
|
Reserves & Surplus |
|
63823.500 |
42617.100 |
|
Net
worth |
|
90534.600 |
71035.100 |
|
|
|
|
|
|
long-term borrowings |
|
166645.400 |
228179.200 |
|
Short term borrowings |
|
76614.000 |
42871.000 |
|
Total
borrowings |
|
243259.400 |
271050.200 |
|
Debt/Equity
ratio |
|
2.687 |
3.816 |
YEAR-ON-YEAR GROWTH
|
Year
on Year Growth |
31.03.2011 |
31.03.2012 |
31.03.2013 |
|
|
Rs.
In Millions |
Rs.
In Millions |
Rs.
In Millions |
|
Sales |
123,015.000 |
162,738.700 |
150,384.500 |
|
|
|
32.292 |
-7.591 |
NET PROFIT MARGIN
|
Net
Profit Margin |
31.03.2011 |
31.03.2012 |
31.03.2013 |
|
|
Rs.
In Millions |
Rs.
In Millions |
Rs.
In Millions |
|
Sales
|
123015.000 |
162738.700 |
150384.500 |
|
Profit |
(1662.700) |
(12515.600) |
(27849.400) |
|
|
(1.35%) |
(7.69%) |
(18.52%) |
LOCAL AGENCY FURTHER INFORMATION
|
Sr. No. |
Check List by Info Agents |
Available in
Report (Yes / No) |
|
1] |
Year of Establishment |
Yes |
|
2] |
Locality of the firm |
Yes |
|
3] |
Constitutions of the firm |
Yes |
|
4] |
Premises details |
No |
|
5] |
Type of Business |
Yes |
|
6] |
Line of Business |
Yes |
|
7] |
Promoter's background |
No |
|
8] |
No. of employees |
No |
|
9] |
Name of person contacted |
No |
|
10] |
Designation of contact
person |
No |
|
11] |
Turnover of firm for last
three years |
Yes |
|
12] |
Profitability for last
three years |
Yes |
|
13] |
Reasons for variation
<> 20% |
-- |
|
14] |
Estimation for coming
financial year |
No |
|
15] |
Capital in the business |
Yes |
|
16] |
Details of sister
concerns |
Yes |
|
17] |
Major suppliers |
No |
|
18] |
Major customers |
No |
|
19] |
Payments terms |
No |
|
20] |
Export / Import details
(if applicable) |
No |
|
21] |
Market information |
-- |
|
22] |
Litigations that the firm
/ promoter involved in |
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 |
No |
|
31] |
Date of Birth of
Proprietor/Partner/Director, if available |
No |
|
32] |
PAN of
Proprietor/Partner/Director, if available |
No |
|
33] |
Voter ID No of
Proprietor/Partner/Director, if available |
No |
|
34] |
External Agency Rating,
if available |
Yes |
LITIGATION DETAILS
|
LITIGATION DETAILS |
|||||||
|
Bench:- Bombay |
|||||||
|
Lodging No. : |
ITXAL/666/2014 |
Failing Date:- |
11/03/2014 |
Reg. No.:- |
ITXA/868/2014 |
Reg. Date:- |
03/05/2014 |
|
|
|||||||
|
Petitioner:- |
THE COMMISSIONER OF INCOME TAX |
Respondent:- |
ESSAR STEEL INDIA LIMITED |
||||
|
Petn.Adv:- |
TEJVEER SINGH MASTAN SINGH (0) |
Resp. Adv.: |
ATIL KARSANDAS JASANI (0) |
||||
|
District:- |
MUMBAI |
||||||
|
|
|||||||
|
Bench:- |
DIVISION |
Category:- |
TAX APPEALS |
||||
|
Status:- |
Pre-Admission |
Stage:- |
|
||||
|
Last Date:- |
06/10/2014 |
|
|||||
|
Last Coram:- |
ACCORDING TO SITTING LIST ACCORDING TO SITTING LIST |
||||||
|
|
|
||||||
|
Act. : |
Income Tax Act,1961 |
Under Section 260A |
|||||
UNSECURED LOAN:
|
Particulars |
As on 31.03.2013 Rs. in Millions |
As on 31.03.2012 Rs. in Millions |
|
LONG TERM
BORROWINGS |
|
|
|
Dollar / Rupee
Notes |
|
|
|
--From Banks |
1974.500 |
1942.700 |
|
--From others |
29.700 |
37.900 |
|
Buyers Credit for Capital Expenditure |
0.000 |
6.900 |
|
Sales Tax Deferral Loan |
338.800 |
338.800 |
|
Long Term maturities of Finance Lease obligations |
18.300 |
29.600 |
|
Inter Corporate
Deposits |
|
|
|
--From Others |
541.700 |
0.000 |
|
SHORT TERM
BORROWINGS |
2903.000 |
|
|
Inter corporate Deposits from related parties |
11284.800 |
0.000 |
|
Total |
14187.800 |
2355.900 |
INDEX OF CHARGE:
|
Sr. No. |
Charge ID |
Date of Charge
Creation/Modification |
Charge amount
secured |
Charge Holder |
Address |
Service Request Number (SRN) |
|
1 |
10450965 |
28/09/2013 |
60,000,000,000.00 |
SBICAP
Trustee Company Limited |
202,
Maker Tower, 'E', Cuffe Parade, Colaba, Mumbai – 400 005, Maharashtra, India |
B85701035 |
|
2 |
10452159 |
26/09/2013 |
866,933,200.00 |
SBICAP
Trustee Company Limited |
202,
Maker Tower, 'E', Cuffe Parade, Colaba, Mumbai – 400 005, Maharashtra, India |
B86276730 |
|
3 |
10449813 |
24/09/2013 |
2,506,340,000.00 |
SBICAP
Trustee Company Limited |
202,
Maker Tower, 'E', Cuffe Parade, Colaba, Mumbai – 400 005, Maharashtra, India |
B85302016 |
|
4 |
10452157 |
13/09/2013 |
3,250,000,000.00 |
INDIAN
OVERSEAS BANK |
229,
Bakhtawar, Ground Floor, Nariman Point, Mumbai – 400 021, Maharashtra, India |
B86275625 |
|
5 |
10448499 |
10/08/2013 |
7,000,000,000.00 |
YES
BANK LIMITED |
Nehru
Centre, 9th Floor, Discovery Of India, Dr. A B Road. Worli, Mumbai – 400018, Maharashtra,
India |
B84760941 |
|
6 |
10441614 |
29/07/2013 |
5,384,700,000.00 |
SBICAP
Trustee Company Limited |
202,
Maker Tower, 'E', Cuffe Parade, Colaba, Mumbai – 400 005, Maharashtra, India |
B81456519 |
|
7 |
10433365 |
26/06/2013 |
1,320,000,000.00 |
SBICAP
Trustee Company Limited |
202,
Maker Tower, 'E', Cuffe Parade, Colaba, Mumbai – 400 005, Maharashtra, India |
B78096948 |
|
8 |
10433227 |
05/06/2013 |
5,000,000,000.00 |
SBICAP
Trustee Company Limited |
202,
Maker Tower, 'E', Cuffe Parade, Colaba, Mumbai – 400 005, Maharashtra, India |
B78043742 |
|
9 |
10423211 |
02/05/2013 |
500,000,000.00 |
SBICAP
Trustee Company Limited |
202,
Maker Tower, 'E', Cuffe Parade, Colaba, Mumbai – 400 005, Maharashtra, India |
B74225921 |
|
10 |
10418593 |
12/04/2013 |
816,637,500.00 |
SBICAP
Trustee Company Limited |
202,
Maker Tower, 'E', Cuffe Parade, Colaba, Mumbai – 400 005, Maharashtra, India |
B72850175 |
NATURE OF OPERATION:
Subject owns and operates an integrated steel manufacturing unit for
manufacturing of fiat rolled products at Hazira - District Surat, a Precoated
facility at Pune, a Beneficiation Plant at Kirandul, Slurry Pipeline,
Peptization Plant at Vizag and at Paradeep. The Company is also in the process
of setting up a Beneficiation Plant at Dabuna (Odisha) and another Peptization
Plant at Paradeep. The Company also operates Processing and Distribution
centres, Hypermarts and Express Marts at various locations across India.
OPERATIONS:
Year 2012 was a gloomy year
for world economy as the recessionary trends continued globally. With Eurozone
crisis and China slowdown, industries observed much weaker growth. Indian steel
industry took a major hit due to a slower global and ban on iron ore
mining in Karnataka as well as Coal scam issues.
Post expansion to 10 MTPA Steel Complex, your Company become the largest single location fiat steel producer in the country and the fourth largest such producer globally. With Blast Furnace and Corex joining the previous DRI (Direct Reduced Iron) technology, your company has now greater flexibility in usage of raw materials. Additionally, the by-product gases generated by these two new units can suitably replace natural gas at several places in your integrated steel complex, thereby reducing dependence on expensive natural gas sources from external providers. Your Company is now able to offer the entire range of fiat products - from thin strips to pipes as well as cold rolled and coated products.
GLOBAL OVERVIEW:
FY 2013 remained a sluggish year for the global steel industry. Overall,
it grew by a mere 0.72% during 2012 as per the latest World Steel Association
estimates -total crude steel production in 2012 was 1,547 million MT vis-a-vis
1,536 million MT in 2011.
Country-wise performance largely reflected disparities linked to
macro-economic environment and operating dynamics in respective economies.
China continued to maintain its dominance with a 46.3% share in total crude
steel production exhibiting a 2.1% growth over 2011 – linked mainly to domestic
demand. Japanese (2nd largest producer) steel output contracted by 0.4% despite
heavy support for exports from a devalued currency. United States, India and
Russia - the other top producers - grew by 2.7%, 5.6% and 2.2% respectively in
terms of crude steel production. Economic recession in Europe implied
contraction in local steel demand. There were scattered opportunities in other
geographies.
Capacity utilization rates remained below 80% -exhibiting a serious
challenge facing the industry. Correction in prices of primary raw materials -
i.e., Iron Ore and Coking Coal - lagged the ability of the industry to sustain
revenue realization. This created margin pressure and compounded financial
problems for the steel industry. Consequently, capacity outages, particularly
in Europe, became inevitable due to prevailing lackluster demand and high
operating cost. Overall, industry performance hinged upon the ability of
producers to extend competitive prices to customers often sub-optimal to
operating cost.
The outlook for FY 2014 is even more difficult than FY2013. Global steel
production is expected to remain fiat to moderate growth. China is expected to
maintain its momentum in steel production - a core sector offering large-scale
employment. All other regions of the world are expected to be saddled with
over-capacity and are expected to curtail production in order to remain
market-relevant. Global steel consumption is likely to remain fiat to decline
as Fixed Asset Investment and steel intensity decline during the FY 2014.
DOMESTIC OVERVIEW:
India's overall steel consumption grew by only 3.2% in 2012 to around 72 million MT due to subdued demand from across consuming sectors like infrastructure and construction. The domestic crude steel production grew by 5.6% in 2012 to 78 million MT.
Many producers in India commissioned additional capacity during the
year. Further capacity addition, in both public as well as private sector, is
planned during FY2014 due to anticipated future demand, particularly
considering that India's per capita consumption low. India's per capita steel
consumption is still too low (59 kg compared to 1157 kg in South Korea, 507 kg
in Japan, 460 kg in China and 235 kg in the North America).
However, in the short to medium term, this will lead to excess domestic
capacity and is likely to create additional margin pressure for the Indian
steel industry already saddled with high costs and cheap imports especially from
Japan and South Korea, which enjoy a preferential import duty.
AWARDS AND ACCOLADES:
·
National Safety Award from JCSSI "ISPAT SURAKSHA
PURASKAR 2013" for the year 2011 and 2012 from Joint Committee on Safety,
Health & Environment (JCSSI) under various categories for Outstanding
Performance in the field of HSE.
·
HSE topped at India Manufacturing Excellence Award
(IMEA) assessment audit with a score of 77.7 and has set a benchmark among all
Industries & Topped Metal Sectors across India in a survey conducted by The
Economic Times - India Manufacturing Excellence Awards in Partnership with
Frost & Sullivan.
·
Gujarat Safety Council in association with Directorate
of Industrial Safety & Health Awarded Dr. Anil Jain, "Safety Man of
the Year 2012". The Award was presented by Shri. Saurabh Patel, Hon'ble
Minister, Gujarat State Govt. at 34th Annual Safety Conference
organized at Ahmedabad.
·
"Safety Innovation Award-2012" from the
Institution of Engineers (India). Award presented by Dr. Narendra Jadhav -
Member Planning Commission at inaugural function of "Safety Convention
2012: Safety in Sustainable Development".
·
Runners up for "Excellence in Safety - Large
Enterprises" Manufacturing Today Awards 2012.
·
Green Rating Project, Three Leaves Award, the Highest
among Indian Steel Plants Awarded by Center for Science and Environment (CSE).
This is a very prestigious award and the Company is rated 2nd
amongst 22 steel plants were evaluated. The award was presented by Shri. Montek
Singh Ahluwalia, Dy. Chairperson, Planning Commission and Smt. Jayanthi
Natarajan, Union Minister of State for Environment & Forests in
·
4th June 2012.
·
Green Environmental Contest awarded by Baroda
Productive Council for the year 201112 and Essar Steel stood first amongst all
the industries of Gujarat.
·
Gold Safety Award 2012 for excellent achievements in
Safety management system from Greentech Foundation, New Delhi.
·
Silver Environment Award 2012 for excellent
achievements in Environment Management system from Greentech Foundation, New
Delhi
·
Best Safety Practices Award 2012 from Deccan Chamber
of Commerce, Industries and Agriculture , Pune.
·
"Gold Award - Metals Sector, Mega Large
Business" by Indian Manufacturing Excellence Awards-2012 sponsored by The
Economic Times.
·
Quality Circle Forum Of India (QCFI) - Baroda (Gold
Award & Sarvashetha Puraskar Award).
·
Gold Award in State Level 5'S' competition organized
by QCFI Baroda.
·
Diamond Award in Lean Six Sigma Presentation organized
by Concept Business Excellence.
·
Commendation award in QCI-DL Shah National Award for
Quality.
·
Steel Hazira bagged FICCI Water Efficiency Award at
the Water Awards 2012 presented by FICCI (Federation of Indian Chambers of
Commerce & Industry), in association with
HSBC.
·
The Company has been certified with a PLATINUM AWARD
second time in a row by Caterpillar worldwide. Last year we had got the
Platinum Award and it was a quite a challenge to retain the Platinum Award this
time.
·
SAP Awards for Customer Excellence (ACE) 2012
recognized the Company for being the "Best Run Manufacturing
Organization" at a ceremony in Mumbai on 19th October, 2012.
CERTIFICATE AND RECOGNITION:
·
Gujarat Safety Council in association with Directorate of Industrial
Safety and Health Govt. of Gujarat awarded Essar Steel India Ltd., Safety
Honour and Merit Certificates for the year 2011:
·
HRC Division: Certificate of Honour - for achieving
more than 3 Million Accident Free Man Hours.
·
HBI Division: Certificate of Merit - for achieving
more than 2 Million Accident Free Man Hours.
·
Pipe Division: Certificate of Merit - for achieving
more than 2 Million Accident Free Man Hours.
·
National Safety Council of India recognized Essar
Steel India Ltd., Hazira for Landmark Safety Achievement of 35.55 Million LTI
Free Man hours.
·
41st National Safety Day Celebrations of
Essar Steel India Ltd. recognized by National Safety Council of India by
publishing clips in Front Cover Page of Industrial Safety Chronicle (Vol. No.
XLIII April-June 2012).
·
Essar Steel India Limited Hazira received recognition
from WSA regarding participation in their CO2 data collection program.
·
Certificate of Appreciation for Commendable Fire
Fighting Operation at IOCL Terminal, Hazira, from Shri. D. C. Chaudhari,
Director-Directorate of Industrial Safety & Health Gujarat on the occasion
of Shram Awards, State Level Prize Distribution Ceremony held at Surat,
Gujarat. For Commendable Fire Fighting Operation by Essar Steel Team at IOCL
Terminal Fire, Hazira, Mr. Rakesh Chaturvedi (Sr. Manager-Fire Services EStIL)
& Mr. Narendra Doot (Asst. Manager-Fire Services, EStIL) received
Certificates for their valiant Heroism from Shri. Ganpat Vasava, Hon'ble
Cabinet Minister, Govt. of Gujarat on the eve of National Republic Day at Surat.
· The Company presented 3 Projects on Environment Improvement at Vibrant Gujarat Summit held at Gandhinagar by Govt. of Gujarat. The initiatives were well appreciated by Gujarat State Environment Minister, Gujarat Pollution Control Board (GPCB) Chairman & Member Secretary.
·
Company's Carbon Management Practices were lauded at
the International Carbon Disclosure Project (CDP), a recent event held at the
Bombay Stock Exchange (BSE) at Mumbai. Under Carbon Disclosure Leadership Index
(CDLI) Essar Steel scored 80 out of 100.
·
Recognition of
three Essar Steel Employees under various categories in Safety Competition
organized by Gujarat Safety Council. The Awards were presented to them in 34th
Annual Safety Conference organized by Gujarat Safety council in association
with Directorate of Industrial Safety and Health at Ahmedabad.
·
Recognition of two Essar Steel Employees' Poster, in
Annual JCSSI Calendar Competition 2013. These posters were published in the
Annual JCSSI Calendar for the year 2013.
·
The Company participated in Workshop "Strategic
Development towards Best Safety Practices and Human Interface" Organized
by Essar Power Vadinar in Coordination with Directorate of Industrial Safety
and Health, Govt. of Gujarat.
·
The Company participated in Conference organized on
"Safety for Sustainable Manufacturing Growth" by Federation of Indian
Chambers of Commerce & Industry (FICCI) inaugurated by Shri. Mallikarjun
Kharge, Union Minister for Labour and Employment.
·
Tata Steel Executives visited our Hazira Complex to
witness our Benchmark HSE Practices & Initiatives. Quote, "We are
thankful to you for providing us the opportunity of getting exposed to the best
of safety practices embedded in Essar Culture", Unquote.
·
As part of Confederation of Indian Industry (CII)
Mission on Best Practices in Safety, Health & Environment (SHE) to Hazira,
Essar Steel promoted Best HSE Practices across the State of Gujarat.
FIXED ASSETS:
Tangible Assets
· Freehold Land
· Leasehold Land
· Buildings
· Plant and Machinery
· Furniture and Fixtures
· Office Equipment
· Computers
· Vehicles
· Ships and Vessels
· Railway Sidings and Wagons
· Aircraft
· Software
CHARGES DETAILS
|
ENTITY |
PERSON |
COMPETENT AUTHORITY |
REGULATORY
CHARGES |
REGULATORY
ACTION(S) / DATE OF ORDER |
FURTHER
DEVELOPMENTS |
|
ESSAR PROJECT (INDIA) LIMITED |
|
SEBI |
DID NOT COMPLY WITH MINIMUM PUBLIC SHAREHOLDING REQUIREMENT |
DEBARRED/RESTRAINED FROM BUYING/SELLING/DEALING/IPOS IN SECURITIES/SPECIFIED
SCRIPS DIRECTLY/INDIRECTLY FROM 04-JUN-2013 TILL COMPLIANCE MINIMUM PUBLIC
SHAREHOLDING REQUIREMENT |
COMPANY COMPLIED WITH THE GUIDELINES ON 03/06/2013 THROUGH
OFFER FOR SALE (STOCK EXCHANGE MECHANISM) |
|
ESSAR STEEL INDIA LIMITED. |
|
SEBI |
DID NOT COMPLY WITH MINIMUM PUBLIC SHAREHOLDING REQUIREMENT |
DEBARRED/RESTRAINED FROM BUYING/SELLING/DEALING/IPOS IN
SECURITIES/SPECIFIED SCRIPS DIRECTLY/INDIRECTLY FROM 04-JUN-2013 TILL
COMPLIANCE MINIMUM PUBLIC SHAREHOLDING REQUIREMENT |
COMPANY COMPLIED WITH THE GUIDELINES ON 03/06/2013 THROUGH
OFFER FOR SALE (STOCK EXCHANGE MECHANISM) |
PRESS RELEASES
ESSAR STEEL MINNESOTA
DENIES REPORTS THAT IT WILL BE SOLD
June 02, 2014
Hibbing, MN - 2nd June 2014: Essar Steel Minnesota LLC (“ESML”) categorically denies that Essar Global Fund Limited (“EGFL”), ESML’s ultimate shareholder, is considering selling the business, contrary to recent media reports.
ESML’s President and
CEO, Madhu Vuppuluri, commented:
“We are very pleased to have closed $450 million of bond financing for ESML in the last few weeks. At this significant milestone we look forward to completing ESML’s world class 7 million tonnes per annum fully-integrated pellet production facility and to an exciting future for ESML.
“ESML is a world class asset that we believe will be one of the lowest cash cost producers of iron ore pellets in North America. ESML will add 7 million tonnes per annumof pellet producing capacity to EGFL’s existing 20 million tonnes per annum of pellet producing capacity operating and under development in India. Accordingly, it is a core investment in the EGFL portfolio.”
About Essar Steel
Minnesota LLC
Essar Steel Minnesota LLC (“ESML”) is an iron ore producer engaged in the development of a 7 mtpa fully-integrated pellet production facility in the western Mesabi Range in northern Minnesota. When completed, the $1.8 billion Project will consist of an open-pit iron ore mine, crushing, concentrating and pelletizing facilities and a rail line and train-loading system. ESML has an aggregate of approximately 1.8 billion tonnes of measured and indicated magnetite iron resources, of which approximately 1.7 billion tonnes are classified as proven or probable reserves, and an additional 0.2 billion tonnes of inferred magnetite iron resources. These estimates are based on ESML’s NI 43-101 report.
ESSAR STEEL AIMS TO
TURN PROFITABLE BY YEAR-END
Monday, 28 April
2014
Debt-laden Essar Steel is looking to turn profitable at net level in the current fiscal by doubling capacity utilisation of its 10 million tonne Hazira plant, reducing interest costs and focusing on higher margin sale of value-added products and commissioning of its slurry pipeline.
"We are targeting to double production as compared with the last fiscal. Added to it two vital things are in place -- one is the slurry pipeline in Odisha coming onstream next month and Vizag slurry pipeline, which is already in operation. That is a big booster. We are looking to get profitable at net level," Dilip Oommen, CEO and MD of Essar Steel, told dna. The 255-km long slurry pipeline, which will connect the company's beneficiation plant at Dabuna to the pellet plant at Paradip, Odisha, has been delayed by almost two years. "Apart from reducing freight cost, the slurry pipeline will also improve the availability of material for pelletisation, which in turn helps the downstream. We expect to have more than enough of pellets at a very competitive price. If there is an excess availability of pellets it will be sold in the market as well," Oomen said.
The company's operational cost is likely to come down with the commencement of slurry pipeline. Apart from this, it now has access to coal-based power and national grid, which will also bring down its power cost. And last, fall in interest cost on dollarisation of debt; all these three factors would help the company to turn profitable this fiscal, he said. Last two fiscals have been extremely tough for the Ruias-owned company as its debt ballooned to more than Rs 310000.000 Millions in last fiscal. The company has been since then trying to turn around operations through various measures, including dollarisation of debt.
Mahadev Iyer, director-finance and chief financial officer of Essar Steel, said the company at present has a total debt of Rs 350000.000 Millions, which includes Rs 290000.000 Millions long-term borrowings and Rs 60000.000 Millions working capital. The company has so far dollarised (which essentially means conversion of rupee debt into dollar debt) $1 billion worth of loans, while it plans to complete the process by dollarising the remaining $2 billion by June. In fiscal 2013, the company's interest cost had swelled to Rs 29550.000 Millions.
Through dollarisation, Essar Steel has been able to save Rs 4000.000 Millions of interest in fiscal 2014, and it expects to save Rs 8000.000 Millions in fiscal 2015, Iyer said. During 2012-13, Essar Steel posted earnings before interest, tax, depreciation and amortisation of Rs 18220.000 Millions, according to its annual report. But it incurred a net loss of Rs 27850.000 Millions on a total income of Rs 191900.000 Millions. The unlisted company is yet to report earnings for the last fiscal.
The Hazira steel plant, which mainly produces flat products, has been operating at an average 40% capacity in fiscal 2014 following cash crunch, short supply of raw material and overall slump in steel demand within the country. The company, however, hopes to double capacity utilisation in current fiscal and produce around 7 mt of steel. India's steel consumption grew by just 0.6% in 2013-14 fiscal, its lowest in four years, to 73.93 mt. Oommen expects some revival in steel demand post elections.
"We have a wide range of products and our quality is very much appreciated and commands premium today, so pushing products into the market is not a problem. Our base quality (basic steel like hot-rolled coil) is very good but we are trying to maximise our niche or specialised steel production so that our base grades in the market are minimised." "We have primarily three avenues; OEMs, retail and exports, so it is not one market where we push all the quantity. We are port based, so exports to many countries work out cheaper than domestic freight also," he said.
ESSAR STEEL BAGS AN
ORDER TO SUPPLY 1.2 LAKH TONNES OF STEEL PIPES TO GUJARAT GOVERNMENT'S SAUNI
PROJECT
June 16, 2014
Essar Steel today announced that it has bagged an order for the supply of pipes for one of the most prestigious projects of the Gujarat government, for water management of the Saurashtra Narmada Avtaran Irrigation (SAUNI) Yojana. Under this programme, the water of Narmada river will be distributed to 115 reservoirs across seven districts of Saurashtra through four linked pipelines benefitting 10,22,589 acres. This project is estimated to cost Rs108000.000 Millions.
Of the 5.86 lakh tonnes of pipes required for the project, Essar Steel will supply 1.2 lakh tonnes of HSAW (Helical Submerged Arc Welding) pipes, which are 12 metres long and 120 inches in diameter. The order will be executed over a period of one year. Essar Steel has an annual production capacity of 2.75 lakh tonnes of HSAW pipes.
Commenting on the recent order, Mr Harjit S Bedi, CEO, Essar Pipe Mill said, “We are very happy to be associated with the SAUNI project of the Gujarat Government. It is clearly a reflection of Essar Steel’s integrated capability to produce world-class pipes in India. We have an excellent track record in supplying water pipes to many projects in India.”
Essar Steel’s pipe mill has an annual production capacity of 0.6 million tonnes of which 3.25 lakh tonnes is LSAW pipes and 2.75 lakh tonnes is HSAW pipes. The plant is backed by a steel plant ensuring quality steel for making pipes.
About Essar
Steel
Essar Steel India is one of India’s leading integrated steel producers with an annual production capacity of 10 million tonnes. The state-of-the-art facilities comprise iron ore beneficiation, pellet making, iron making, steel making, and downstream facilities, including a cold rolling mill, a galvanising and pre-coated facility, a steel-processing facility, an extra-wide plate mill and a pipe mill.
Essar Steel uses information technology extensively for its operations to ensure consistent quality of its products. It produces over 300 grades of steel conforming to quality standards of international certification agencies like API, ABS, NACE, Lloyd’s Register to name a few. The products cater to the requirements of a wide cross section of industries, many of which are import substitute products.
Essar Hypermart, a pioneering initiative of Essar Steel, caters to the requirements of the SME segment, which normally does not have access to mill material directly.
Sustainability has been given due importance and the company is on course to becoming a zero-waste company.
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.60.84 |
|
|
1 |
Rs.98.73 |
|
Euro |
1 |
Rs.78.64 |
INFORMATION DETAILS
|
Information
Gathered by : |
HNA |
|
|
|
|
Analysis Done by
: |
SUB |
|
|
|
|
Report Prepared
by : |
NTH |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
4 |
|
PAID-UP CAPITAL |
1~10 |
4 |
|
OPERATING SCALE |
1~10 |
3 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
3 |
|
--PROFITABILIRY |
1~10 |
3 |
|
--LIQUIDITY |
1~10 |
3 |
|
--LEVERAGE |
1~10 |
3 |
|
--RESERVES |
1~10 |
3 |
|
--CREDIT LINES |
1~10 |
3 |
|
--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 |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
DEFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
|
|
|
|
TOTAL |
|
29 |
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.