MIRA INFORM REPORT
|
Report No. : |
316368 |
|
Report Date : |
08.04.2015 |
IDENTIFICATION DETAILS
|
Name : |
HEG LIMITED |
|
|
|
|
Registered
Office : |
Mandideep, Near Bhopal, District Raisen - 462 046, Madhya Pradesh |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as
on) : |
31.03.2014 |
|
|
|
|
Date of
Incorporation : |
27.10.1972 |
|
|
|
|
Com. Reg. No.: |
05-008290 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs. 399.595 Million |
|
|
|
|
CIN No.: [Company Identification
No.] |
L23109MP1972PLC008290 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
Not Available |
|
|
|
|
PAN No.: [Permanent Account No.] |
Not Available |
|
|
|
|
Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchanges. |
|
|
|
|
Line of Business
: |
Manufacturer of graphite electrodes, focusing on the manufacture of large sizes and addressing the needs of the critical UHP segment |
|
|
|
|
No. of Employees
: |
Not Divulged |
RATING & COMMENTS
|
MIRA’s Rating : |
A (58) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
Status : |
Good |
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|
|
|
Payment Behaviour : |
Regular |
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|
|
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Litigation : |
Clear |
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|
Comments : |
Subject is a group company of the LNJ Bhilwara group, is today India’s
leading graphite electrode manufacturer. It is a well–established company having fine track record. Management of the company has reported decent profitability during the
year 2013-14. The company has good financial position marked by healthy net worth. Trade relations are fair. Business is active. Payment terms are
reported to be regular and asper commitment. The company can be considered for business dealings with usual
business 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 – December 31, 2014
|
Country Name |
Previous Rating (30.09.2014) |
Current Rating (31.12.2014) |
|
India |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
EXTERNAL AGENCY RATING
|
Rating Agency Name |
Not Available |
|
Rating |
Not Available |
|
Rating Explanation |
Not Available |
|
Date |
Not Available |
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 BY
|
Name : |
Mr. Raju Rustogi |
|
Designation : |
Chief Financial Officer |
|
Contact No.: |
91-120-4390300 |
|
Date : |
06.04.2015 |
LOCATIONS
|
Registered Office : |
Mandideep, Near Bhopal, District Raisen - 462 046, Madhya Pradesh, India |
|
Tel. No.: |
91-7480-233524/ 233525/233526/ 233527 |
|
Fax No.: |
91-7480-233522 |
|
E-Mail : |
investor.complaints@hegltd.com |
|
Website : |
|
|
|
|
|
Corporate Office : |
Bhilwara Towers, A - 12, Sector - 1, Noida - 201 301, Madhya Pradesh, India |
|
Tel. No.: |
91-120-4390300/ 2541810 |
|
Fax No.: |
91-120-4277840/ 4277841/ 4277842 |
|
|
|
|
Works: |
|
|
Graphite Electrodes
and Thermal Power Plants |
Mandideep, Near Bhopal, District Raisen - 462 046, Madhya Pradesh, India |
|
|
|
|
Hydro Electric
Power |
Village Ranipur, Tawa Nagar, District Hoshangabad – 461001, Madhya Pradesh, India |
|
Tel. No.: |
91-7572-272810/ 272859 |
|
Fax No.: |
91-7572-272849 |
DIRECTORS
As on: 31.03.2014
|
Name : |
Mr. Ravi Jhunjhunwala |
|
Designation : |
Chairman, Managing Director and Chief Executive Officer |
|
Address : |
63, Friends Colony (East), New Delhi-110065, India |
|
Date of Appointment : |
08.09.1979 |
|
DIN No.: |
00060972 |
|
|
|
|
Name : |
Mr. Shekhar Agarwal |
|
Designation : |
Vice-Chairman And Director |
|
Address : |
7, Sadhana Enclave, New Delhi - 110017, India |
|
Date of Appointment : |
15.07.1996 |
|
DIN No.: |
00066113 |
|
|
|
|
Name : |
Mr. Dharmendar Nath Davar |
|
Designation : |
Director |
|
Address : |
B5/82, Safdarjung Enclave, New Delhi - 110029, India |
|
Date of Birth/Age : |
08.08.1934 |
|
Date of Appointment : |
10.11.1994 |
|
Qualification |
B.COM (Hons.), M.A. (Eco), CAIIB and Fellow of the Economic Development Institute of the World Bank. |
|
DIN No.: |
00002008 |
|
|
|
|
Name : |
Ms. Kamal Gupta |
|
Designation : |
Director |
|
Address : |
N-23, Sector 11, Gautam Budh Nagar, Noida- 201301, Uttar Pradesh, India |
|
Date of Birth/Age : |
12.02.1946 |
|
Date of Appointment : |
10.11.1994 |
|
Qualification |
FCA, FICWA, Ph.D. |
|
DIN No.: |
00038490 |
|
|
|
|
Name : |
Ms. Vinita Singhania |
|
Designation : |
Director |
|
Address : |
101, Friends Colony East, New Delhi - 110065, India |
|
Date of Birth/Age : |
12.03.1952 |
|
Date of Appointment : |
12.11.2013 |
|
Qualification |
Graduate in Arts. |
|
DIN No.: |
00042983 |
|
|
|
|
Name : |
Mr. Lalit Mohan Lohani |
|
Designation : |
Nominee Director – LIC |
|
Address : |
Flat No. 14, Queens Mansion, 12 Park Street, Kolkata - 700072, West Bengal, India |
|
Date of Appointment : |
27.07.2010 |
|
DIN No.: |
00671773 |
|
|
|
|
Name : |
Mr. Riju Jhunjhunwala |
|
Designation : |
Director |
|
Address : |
63, Friends Colony(East), New Delhi - 110065, India |
|
Date of Birth/Age : |
13.01.1979 |
|
Date of Appointment : |
30.04.2009 |
|
DIN No.: |
00061060 |
|
Qualification |
Degree in Business Management studies. |
|
|
|
|
Name : |
Mr. Om Parkash Bahl |
|
Designation : |
Director |
|
Address : |
D-210, Sector-55, Noida - 201301, Uttar Pradesh, India |
|
Date of Birth/Age : |
05.10.1939 |
|
Date of Appointment : |
30.04.2009 |
|
Qualification |
M.Sc. and Ph.D. |
|
DIN No.: |
02643557 |
KEY EXECUTIVES
|
Name : |
Mr. Raju Rustogi |
|
Designation : |
Chief Financial Officer |
|
Address : |
M-139, First Floor, Blossom-II, Sector-51, Gurgaon, Gurgaon-122009, Haryana, India |
|
Date of Appointment : |
30.07.2014 |
|
PAN No.: |
ABLPR7778N |
|
|
|
|
Name : |
Mr. Manish Gulati |
|
Designation : |
Vice President Marketing |
|
|
|
|
Name : |
Mr. Ashish Sabharwa |
|
Designation : |
Company Secretary |
|
Address : |
1848, Brahamputra Apartments, Sector-29, Noida - 201301, Uttar Pradesh, India |
|
Date of Appointment : |
15.03.2008 |
|
PAN No.: |
AGIPS4435R |
|
|
|
|
Name : |
Mr. L. N. Jhunjhunwala |
|
Designation : |
Chairman-Emeritus |
|
|
|
|
Name : |
Mr. K. Vaidyanathan |
|
Designation : |
Chief Operating Officer |
|
|
|
|
Name : |
Mr. T. Dev Joshi |
|
Designation : |
Chief Human Resource Officer |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON: 31.12.2014
|
Category of Shareholder |
Total
No. of Shares |
As a % |
|
(A) Shareholding of Promoter
and Promoter Group |
|
|
|
|
|
|
|
|
1277588 |
3.20 |
|
|
10397055 |
26.02 |
|
|
11674643 |
29.22 |
|
|
|
|
|
|
11818107 |
29.58 |
|
|
11818107 |
29.58 |
|
Total shareholding of Promoter and
Promoter Group (A) |
23492750 |
58.79 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
19163 |
0.05 |
|
|
350210 |
0.88 |
|
|
3886797 |
9.73 |
|
|
506719 |
1.27 |
|
|
4762889 |
11.92 |
|
|
|
|
|
|
3248967 |
8.13 |
|
|
|
|
|
|
4814283 |
12.05 |
|
|
606836 |
1.52 |
|
|
3033417 |
7.59 |
|
|
2893888 |
7.24 |
|
|
126602 |
0.32 |
|
|
12927 |
0.03 |
|
|
11703503 |
29.29 |
|
Total Public shareholding (B) |
16466392 |
41.21 |
|
Total (A)+(B) |
39959142 |
100.00 |
|
(C) Shares held by Custodians
and against which Depository Receipts have been issued |
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
Total (A)+(B)+(C) |
39959142 |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer of graphite electrodes, focusing on the manufacture of large sizes and addressing the needs of the critical UHP segment |
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|
Products : |
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|
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Brand Names : |
Not Available |
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Agencies Held : |
Not Available |
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|
Exports : |
Not Divulged |
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Imports : |
Not Divulged |
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|
|
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Terms : |
Not Divulged |
PRODUCTION STATUS NOT AVAILABLE
GENERAL INFORMATION
|
Suppliers : |
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Customers : |
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No. of Employees : |
Not Divulged |
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Bankers : |
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Facilities : |
Long-term
Borrowings Term Loans from Financial Institutions and Banks/other lending Institutions are secured by way of joint equitable mortgage of all the immovable properties (present and future) of Graphite and Thermal Power units at Mandideep and Hydel unit at Tawa Nagar ranking on pari- passu basis and hypothecation of all movable assets of the Company (except book debts) subject to prior charge of the Company’s bankers on specified movable assets in respect of working capital borrowings. Short-term
borrowings: Working Capital Borrowings from Banks are secured by
hypothecation of all Current Assets and second charge by way of joint
equitable mortgage of immovable properties of the Company in respect of
Graphite & Thermal Power units at Mandideep and Hydel unit at Tawanagar.
The said charge in favour of bank shall rank sub-ordinate and subservient to
the existing charges created by the Company in favour of financial
Institutions and banks for their term loans. |
|
|
|
|
Financial
Institution: |
Aditya Birla Finance Limited, Indian Rayon Compound, Veraval - 362266, , Gujarat, India |
|
|
|
|
Auditors 1: |
|
|
Name : |
Doogar and Associates Chartered Accountants |
|
|
|
|
Auditors 2: |
|
|
Name : |
S. S. Kothari Mehta and Company Chartered Accountants |
|
|
|
|
Memberships : |
Not Available |
|
|
|
|
Collaborators : |
Not Available |
|
|
|
|
Subsidiaries (31.03.2014): |
HEG Graphite Products and Services Limited |
|
|
|
|
Associate
(31.03.2014) |
Bhilwara Energy Limited Bhilwara Infotechnology Limited |
|
|
|
|
Enterprises over
which any person described in (c) or (d) is able to exercise significant
influence. (31.03.2014) |
|
CAPITAL STRUCTURE
AS ON 31.03.2014
Authorized Capital:
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
55000000 |
Equity Shares |
Rs. 10/- each |
Rs. 550.000 Million |
|
1500000 |
Preference Shares |
Rs. 100/- each |
Rs. 150.000 Million |
|
|
Total
|
|
Rs. 700.000
Million |
Issued, Subscribed & Paid-up Capital:
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
3,99,59,142 |
Equity Shares |
Rs. 10/- each |
Rs. 399.591
Million |
|
1,150 |
Forfeited Equity Shares |
|
Rs. 0.004
Million |
|
|
Total |
|
Rs. 399.595
Million |
Of
the above
- 22196821 (Previous year 22196821) Equity Shares have been issued as fully paid up bonus shares by capitalization of Reserves.
- 300000 (Previous year 300000) Equity Shares have been issued as fully paid up pursuant to a contract without payment being received in cash.
- 10700 (Previous year 10700) Equity shares have been issued at par as fully paid up to the members of erstwhile subsidiary company Bhilwara Viking Petroleum Limited pursuant to amalgamation.
b) Reconciliation of the number of shares outstanding at the beginning
and the end of the reporting period:
|
|
31.03.2014 |
|
|
|
No. of Shares
held |
Rs. in Million |
|
Equity Shares of Rs. 10 At the beginning of the period |
3,99,59,142 |
399.591 |
|
Issued during the period |
- |
- |
|
|
- |
- |
|
Outstanding at the
end of the period |
3,99,59,142 |
399.591 |
Terms/Rights attached
to equity shares
Company has only one class of equity shares having a par value of Rs. 10/-. Each holder of equity shares is entitled to one vote per share. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.
In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.
During the year ended 31st March, 2014, the amount per share dividend recognized as distribution to Equity Shareholders was Rs. 6 per Equity Share (Previous year Rs. 8 per Equity Share).
c) Shares in the company held by each shareholder holding more than 5
percent shares specifying the number of shares held:
|
Name of
Shareholders |
31.03.2014 |
|
|
|
No. of Shares
held |
% of Holding |
|
Norbury Investments Limited |
53,62,991 |
13.42 |
|
Microlight Investments Limited |
46,65,579 |
11.68 |
|
Life Insurance Corporation of India |
34,33,294 |
8.59 |
|
GPC Mauritius II LLC |
28,93,888 |
7.24 |
|
Bharat Investments Growth Limited |
26,09,598 |
6.53 |
As per of the Company, including its register of shareholders/members and other declaration received from shareholders regarding beneficial interest, the above shareholding represents both legal and beneficial ownerships of shares.
FINANCIAL DATA
[all figures are
in Rupees Million]
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 |
399.595 |
399.595 |
399.595 |
|
(b) Reserves & Surplus |
8841.082 |
8233.316 |
7222.670 |
|
(c) Money
received against share warrants |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
(2) Share Application money pending
allotment |
0.000 |
0.000 |
0.000 |
|
Total
Shareholders’ Funds (1) + (2) |
9240.677 |
8632.911 |
7622.265 |
|
|
|
|
|
|
(3)
Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
1689.586 |
3597.410 |
3527.422 |
|
(b) Deferred tax liabilities (Net) |
920.277 |
813.763 |
786.583 |
|
(c) Other long term
liabilities |
21.709 |
24.844 |
20.597 |
|
(d) long-term
provisions |
20.509 |
20.029 |
22.360 |
|
Total Non-current
Liabilities (3) |
2652.081 |
4456.046 |
4356.962 |
|
|
|
|
|
|
(4)
Current Liabilities |
|
|
|
|
(a) Short
term borrowings |
6644.123 |
8553.905 |
7906.850 |
|
(b) Trade
payables |
2298.503 |
1337.960 |
1026.656 |
|
(c) Other
current liabilities |
3129.445 |
2758.981 |
2157.563 |
|
(d) Short-term
provisions |
334.396 |
439.747 |
514.193 |
|
Total Current
Liabilities (4) |
12406.467 |
13090.593 |
11605.262 |
|
|
|
|
|
|
TOTAL |
24299.225 |
26179.550 |
23584.489 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1)
Non-current assets |
|
|
|
|
(a) Fixed
Assets |
|
|
|
|
(i)
Tangible assets |
9400.733 |
7170.358 |
7440.083 |
|
(ii)
Intangible Assets |
4.986 |
8.951 |
13.622 |
|
(iii)
Capital work-in-progress |
1186.971 |
2145.424 |
1283.505 |
|
(iv)
Intangible assets under development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current Investments |
976.632 |
702.268 |
684.639 |
|
(c) Deferred tax assets (net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
592.102 |
1180.916 |
814.820 |
|
(e) Other
Non-current assets |
280.680 |
213.937 |
152.990 |
|
Total Non-Current
Assets |
12442.104 |
11421.854 |
10389.659 |
|
|
|
|
|
|
(2)
Current assets |
|
|
|
|
(a)
Current investments |
2.500 |
2.500 |
2.500 |
|
(b)
Inventories |
4940.046 |
6076.692 |
6188.081 |
|
(c) Trade receivables |
5238.809 |
5985.606 |
4906.800 |
|
(d) Cash
and cash equivalents |
120.230 |
146.225 |
179.781 |
|
(e)
Short-term loans and advances |
1141.632 |
1781.018 |
1428.531 |
|
(f) Other
current assets |
413.904 |
765.655 |
489.137 |
|
Total Current
Assets |
11857.121 |
14757.696 |
13194.830 |
|
|
|
|
|
|
TOTAL |
24299.225 |
26179.550 |
23584.489 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
14668.112 |
16226.148 |
14246.108 |
|
|
|
Other Income |
217.715 |
136.022 |
167.858 |
|
|
|
TOTAL (A) |
14885.827 |
16362.170 |
14413.966 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of Materials Consumed |
6448.774 |
8242.899 |
6944.682 |
|
|
|
Changes in inventories of
finished goods, work-in-progress and Stock-in-Trade |
597.299 |
(377.368) |
44.513 |
|
|
|
Employees benefits expense |
588.353 |
557.812 |
471.578 |
|
|
|
Other expenses |
4573.821 |
4871.631 |
4367.139 |
|
|
|
Exceptional Item |
253.583 |
551.979 |
928.495 |
|
|
|
TOTAL (B) |
12461.830 |
13846.953 |
12756.407 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
2423.997 |
2515.217 |
1657.559 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
722.969 |
636.037 |
406.847 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
1701.028 |
1879.180 |
1250.712 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
726.599 |
626.444 |
579.312 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
974.429 |
1252.736 |
671.400 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
108.253 |
194.796 |
48.202 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
866.176 |
1057.940 |
623.198 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
3688.950 |
3004.349 |
2688.516 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Proposed Dividend |
239.755 |
319.673 |
199.796 |
|
|
|
Dividend distribution tax on
Proposed Dividend |
40.746 |
54.328 |
32.412 |
|
|
|
Transfer to Debenture
Redemption Reserves (Net) |
0.000 |
0.000 |
12.500 |
|
|
|
Amount Transferred to General
Reserve |
86.618 |
250.000 |
75.000 |
|
|
|
Dividend distribution tax |
0.000 |
0.000 |
(12.343) |
|
|
|
Transfer from Debenture
Redemption Reserve |
0.000 |
(250.662) |
0.000 |
|
|
|
Total
(M) |
367.119 |
373.339 |
307.365 |
|
|
BALANCE CARRIED
TO THE B/S |
4188.007 |
3688.950 |
3004.349 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
F.O.B. Value of Exports |
11213.085 |
13207.837 |
10689.304 |
|
|
TOTAL EARNINGS |
11213.085 |
13207.837 |
10689.304 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
3678.475 |
5102.719 |
5067.952 |
|
|
|
Stores & Spares |
35.120 |
56.921 |
115.328 |
|
|
|
Capital Goods |
317.327 |
264.623 |
266.317 |
|
|
TOTAL IMPORTS |
4030.922 |
5424.263 |
5449.597 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
21.68 |
26.48 |
15.34 |
|
QUARTERLY /
SUMMARISED RESULTS
|
PARTICULARS |
Unaudited 30.06.2014 |
Unaudited 30.09.2014 |
Unaudited 31.12.2014 |
|
Type |
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
|
Revenue |
3,473.000 |
3,234.100 |
2,797.400 |
|
Other Income |
27.000 |
38.600 |
2.100 |
|
Total Income |
3,500.000 |
3,272.700 |
2,799.500 |
|
Expenditure |
(2,903.000) |
(2,823.500) |
(2,378.600) |
|
Interest |
(178.000) |
(174.800) |
(165.300) |
|
PBDT |
419.100 |
274.400 |
255.600 |
|
Depreciation |
(193.500) |
(187.300) |
(192.900) |
|
PBT |
225.600 |
87.100 |
62.700 |
|
Tax |
(36.200) |
(31.300) |
41.800 |
|
Net Profit |
189.400 |
55.800 |
104.500 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
Net Profit Margin (PAT / Sales) |
(%) |
5.91 |
6.52 |
4.37 |
|
|
|
|
|
|
|
Operating Profit Margin (PBIDT/Sales) |
(%) |
16.53 |
15.50 |
11.64 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
4.40 |
5.37 |
3.11 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.11 |
0.15 |
0.09 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt /Networth) |
|
0.90 |
1.41 |
1.50 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
0.96 |
1.13 |
1.14 |
FINANCIAL ANALYSIS
[all figures are
in Rupees Million]
DEBT EQUITY RATIO
|
Particular |
31.03.2012 |
31.03.2013 |
31.03.2014 |
|
|
(Rs. In Million) |
(Rs. In Million) |
(Rs. In Million) |
|
Share Capital |
399.595 |
399.595 |
399.595 |
|
Reserves & Surplus |
7222.670 |
8233.316 |
8841.082 |
|
Net worth |
7622.265 |
8632.911 |
9240.677 |
|
|
|
|
|
|
long-term borrowings |
3527.422 |
3597.410 |
1689.586 |
|
Short term borrowings |
7906.850 |
8553.905 |
6644.123 |
|
Total borrowings |
11434.272 |
12151.315 |
8333.709 |
|
Debt/Equity ratio |
1.500 |
1.408 |
0.902 |
YEAR-ON-YEAR GROWTH
|
Year on Year Growth |
31.03.2012 |
31.03.2013 |
31.03.2014 |
|
|
(Rs. In Million) |
(Rs. In Million) |
(Rs. In Million) |
|
Sales |
14246.108 |
16226.148 |
14668.112 |
|
|
|
13.899 |
-9.602 |
NET PROFIT MARGIN
|
Net Profit Margin |
31.03.2012 |
31.03.2013 |
31.03.2014 |
|
|
(Rs. In Million) |
(Rs. In Million) |
(Rs. In Million) |
|
Sales |
14246.108 |
16226.148 |
14668.112 |
|
Profit |
623.198 |
1057.940 |
866.176 |
|
|
4.37% |
6.52% |
5.91% |
LOCAL AGENCY FURTHER INFORMATION
|
Sr. No. |
Check List by Info Agents |
Available in
Report (Yes / No) |
|
1] |
Year of Establishment |
Yes |
|
2] |
Locality of the firm |
Yes |
|
3] |
Constitutions of the firm |
Yes |
|
4] |
Premises details |
No |
|
5] |
Type of Business |
Yes |
|
6] |
Line of Business |
Yes |
|
7] |
Promoter's background |
Yes |
|
8] |
No. of employees |
No |
|
9] |
Name of person contacted |
Yes |
|
10] |
Designation of contact
person |
Yes |
|
11] |
Turnover of firm for last
three years |
Yes |
|
12] |
Profitability for last
three years |
Yes |
|
13] |
Reasons for variation
<> 20% |
-- |
|
14] |
Estimation for coming
financial year |
No |
|
15] |
Capital in the business |
Yes |
|
16] |
Details of sister
concerns |
Yes |
|
17] |
Major suppliers |
No |
|
18] |
Major customers |
No |
|
19] |
Payments terms |
No |
|
20] |
Export / Import details
(if applicable) |
No |
|
21] |
Market information |
-- |
|
22] |
Litigations that the firm
/ promoter involved in |
-- |
|
23] |
Banking Details |
Yes |
|
24] |
Banking facility details |
Yes |
|
25] |
Conduct of the banking
account |
-- |
|
26] |
Buyer visit details |
-- |
|
27] |
Financials, if provided |
Yes |
|
28] |
Incorporation details, if
applicable |
Yes |
|
29] |
Last accounts filed at
ROC |
Yes |
|
30] |
Major Shareholders, if
available |
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 |
No |
OVERALL PERFORMANCE:
The Company recorded net sales of Rs. 14589.100 Million during the financial year 2013-14 as compared to Rs. 16174.300 Million in the previous financial year. The Net Profit during the financial year 2013-14 was at Rs. 866.200 Million as compared to Rs. 1057.900 Million in financial year 2012-13 translating to basic earnings per share at Rs. 21.68 for the financial year 2013-14 as against Rs. 26.48 in financial year 2012-13.
MANAGEMENT DISCUSSION
AND ANALYSIS (31.03.2014)
OVERVIEW:
Graphite electrodes are largely used by electric arc furnace steel makers. There was a decline in the volume offtake as well as realizations. Even as the price erosion commenced in April 2013 in the smaller markets, the trend became increasingly pronounced in May and June 2013. In this challenging environment, a forward-looking and competitive manufacturer like HEG reported a healthy bottom line, showcasing its competence in being able to strengthen, succeed and sustain.
ECONOMIC PROGRESSION
GLOBAL ECONOMY:
The year witnessed continued volatility in the first half of the year. In the advanced economies steel and graphite electrode demand improved slightly towards the end of the year. The global gross domestic product (GDP) growth came down from 3.2% in 2012 to 2.9% in 2013. In the emerging market economies, domestic demand was subdued, but export push helped drive growth. The global trade also revived marginally in the second half of 2013.
OUTLOOK:
IMF forecasts showed emerging markets still accounting for a significant quantum of global growth. In the advanced economies, the US is expected to emerge as the key growth driver; the Eurozone appeared to be turning a corner following the recession and is expected to report positive growth in 2014.
ESTIMATES:
Based on the forecasts, global growth is projected to be slightly higher at around 3.7% in 2014 and rising to 3.9% in 2015 (Source: IMF).
INDIAN ECONOMY:
India’s economic growth rate in 2013-14 was estimated at 4.7%, growing faster than in the previous year growth of 4.5%, mainly on the back of an improved performance in its agriculture and allied sectors. Gross Fixed Capital Formation (GFCF), an indicator of investment, was forecast at Rs. 3.220 Million at current prices as against Rs. 3.070 Million in 2012-13.
INDUSTRY OV ERVIEW:
Steel represents the building block of modern society given that it is used in almost every aspect of development- buildings, vehicles, equipment and even a food can. The steel industry rides the growth of its user industries, namely automobiles, consumer durables and infrastructure. Interestingly, the volume of steel consumed is often
Interpreted as a reliable barometer in measuring a country’s economic progress.
UNSECURED LOAN
|
Particular |
31.03.2013 (Rs.
in Million) |
31.03.2012 (Rs.
in Million) |
|
Short-term
borrowings |
|
|
|
Short Term borrowings from banks |
509.000 |
1562.992 |
|
|
|
|
|
Total |
509.000 |
1562.992 |
CONTINGENT
LIABILITIES:
(Rs. in million)
|
PARTICULARS |
31.03.2014 |
|
For Taxation
matters |
|
|
Excise duty under appeal |
26.197 |
|
Service Tax |
95.322 |
|
Income Tax |
218.700 |
|
Sales Tax |
21.064 |
|
Other than Taxation
matters |
|
|
Electricity Charges |
465.000 |
|
RPO Obligation |
98.000 |
|
Advance & EPCG License |
50.884 |
|
Labour related matters |
3.422 |
INDEX OF CAHREGS:
|
S. NO. |
CHARGE ID |
DATE OF CHARGE
CREATION/MODIFICATION |
CHARGE AMOUNT
SECURED |
CHARGE HOLDER |
ADDRESS |
SERVICE REQUEST
NUMBER (SRN) |
|
1 |
10550438 |
02/02/2015 |
480,000,000.00 |
STATE BANK OF INDIA |
COMMERCIAL BRANCH,
LHO COMPLEX, HOSHANGABAD ROAD, |
C44266070 |
|
2 |
10534593 |
17/11/2014 |
420,000,000.00 |
KOTAK MAHINDRA BANK LIMITED |
7TH FLOOR, AMBADEEP BUILDING, 14, K G MARG, NEW DELHI - 110001, INDIA |
C35794841 |
|
3 |
10395919 |
14/08/2013 * |
500,000,000.00 |
DEVELOPMENT CREDIT BANK LIMITED |
601 & 602,
PENINSULA BUSINESS PARK, 6TH FLOOR, TOWER A, SENAPATI BAPAT MARG, LOWER
PAREL, MUMBAI - 400013, |
B82326554 |
|
4 |
10389582 |
14/08/2013 * |
500,000,000.00 |
ADITYA BIRLA FINANCE LIMITED |
INDIAN RAYON
COMPOUND, VERAVAL - 362266, GUJARAT, |
B82317348 |
|
5 |
10356947 |
12/02/2013 * |
500,000,000.00 |
AXIS BANK LIMITED |
165A-166 STAR ARCADE,
M.P. NAGAR, ZONE-1, BHOPAL - 462013, |
B69630788 |
|
6 |
10348642 |
12/02/2013 * |
500,000,000.00 |
AXIS BANK LIMITED |
165A-166 STAR
ARCADE, M.P. NAGAR, ZONE-1, BHOPAL - 462013, |
B69630069 |
|
7 |
10336655 |
14/08/2013 * |
540,000,000.00 |
DBS BANK LIMITED |
CAPITOL POINT ,
BABA KHARAK SINGH MARG, CONNAUGHT |
B83321794 |
|
8 |
10302358 |
27/07/2011 |
900,500,000.00 |
DBS BANK LIMITED |
UPPER GROUND FLOOR,
BIRLA TOWER, 25, BARAKHAMBA |
B18860775 |
|
9 |
90205303 |
12/02/2013 * |
14,100,000,000.00 |
STATE BANK OF INDIA |
COMMERCIAL BRANCH,
LHO COMPLEX, HOSHANGABAD ROAD, |
B68146349 |
* Date
of charge modification
UNAUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED AND NINE MONTHS
ON 31.12.2014
[RS.
IN MILLIONS]
|
PARTICULARS |
3 Months Ended |
9 Months Ended |
|
|
31.12.2014 [Unaudited] |
30.09.2014 [Unaudited] |
31.12.2014 [Unaudited] |
|
|
(a) Net sates/income from operations (Net of excise duty) |
2785.100 |
3226.900 |
9473.300 |
|
(b) Other Operating Income |
12.300 |
7.200 |
31.300 |
|
Total income from operations (net) |
2797.400 |
3234.100 |
9504.600 |
|
Expenses |
|
|
|
|
(a) Cost of materials consumed |
1506.000 |
1420.700 |
4691.300 |
|
(b) Purchases of stock-in trade |
0.000 |
0.000 |
0.000 |
|
(c) Changes in inventories of finished goods.
work-in-progress and stock in trade |
-283.000 |
317.400 |
45.700 |
|
(d) Employee benefits expense |
150.400 |
145.600 |
437.400 |
|
(e) Depreciation and Amortization Expenses |
192.900 |
187.300 |
573.700 |
|
(f) Other Expenses |
734.700 |
665.300 |
2152.900 |
|
(g)Power and Fuel |
176.600 |
189.200 |
577.100 |
|
Total expenses |
2477.600 |
2925.500 |
8478.100 |
|
Profit/ (Loss) from operations before other Income,
finance costs and exceptional Items (1-2) |
319.800 |
308.600 |
1026.500 |
|
Other Income |
2.100 |
38.600 |
67.700 |
|
Profit/ (Loss) from operations before other income,
finance costs and exceptional items (3+4) |
321.900 |
347.200 |
1094.200 |
|
Finance Costs |
165.300 |
174.800 |
518.100 |
|
Profit/ (Loss) from ordinary activities after finance cost
but before exceptional items (5-6) |
156.600 |
172.400 |
576.100 |
|
Exceptional items |
93.900 |
85.300 |
200.700 |
|
Profit/ (Loss) from ordinary activities before tax (7+8) |
62.700 |
87.100 |
375.400 |
|
Tax expenses |
-41.800 |
31.300 |
25.700 |
|
Net Profit / (Loss) from ordinary activities after tax
(9-10) |
104.500 |
55.800 |
349.700 |
|
Extraordinary item (net of tax expense) |
0.000 |
0.000 |
0.000 |
|
Net Profit / (Loss) for the period (11-12) |
104.500 |
55.800 |
349.700 |
|
|
|
|
|
|
Paid-up equity share capital (Nominal value Rs.10
per share) |
399.600 |
399.600 |
399.600 |
|
Reserve excluding Revaluation Reserves as per
balance sheet of previous accounting year |
- |
- |
- |
|
i) Earnings
per share (before extraordinary items) of Rs.10/- each) (not annualised): |
- |
- |
- |
|
(a) Basic and diluted |
2.62 |
1.40 |
8.75 |
|
|
|
|
|
|
A.
PARTICULARS OF SHAREHOLDING |
|
|
|
|
1.
Public Shareholding |
|
|
|
|
- Number of shares |
16466392 |
16470683 |
16466392 |
|
- Percentage of shareholding |
41.21 |
41.22 |
41.21 |
|
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 |
23492750 |
23488750 |
23492750 |
|
Percentage of shares (as a % of total shareholding of the
promoter and promoter group) |
100 |
100 |
100 |
|
Percentage of shares (as a % of total share capital of the
company) |
58.79 |
58.78 |
58.79 |
|
|
PARTICULARS |
3 Months
Ended 31.12.2014 |
|
B |
Investor
complaints (Nos.) |
|
|
|
Pending at the beginning of the quarter |
|
|
|
Received during the Quarter |
|
|
|
Disposed of during the quarter |
|
|
|
Remaining unresolved at the end of the quarter |
|
SEGMENTWISE
REVENUE, RESULTS AND CAPITAL EMPLOYED UNDER CLAUSE 41 OF THE LISTING AGREEMENT
FOR THE QUARTER AND NINE MONTHS ENDED 31.12.2014
(Rs. In
Millions)
|
Particulars |
3
Months Ended |
9
Months Ended |
|
|
|
31.12.2014 [Unaudited] |
30.09.2014 [Unaudited] |
31.12.2014 [Unaudited] |
|
1.
Segment Revenue |
|
|
|
|
Graphite |
2711.700 |
3194.700 |
9332.500 |
|
Power |
606.400 |
564.500 |
1732.200 |
|
Others |
0.200 |
0.000 |
0.700 |
|
Total |
3318.300 |
3759.200 |
11065.400 |
|
Less : Inter Segment Revenue |
520.900 |
525.000 |
1560.800 |
|
Net
Sales |
2797.400 |
3234.100 |
9504.600 |
|
|
|
|
|
|
2.
Segment Result |
|
|
|
|
Profit before tax and interest from each
segment |
|
|
|
|
Graphite |
63.400 |
132.100 |
392.900 |
|
Power |
245.900 |
207.000 |
666.800 |
|
Others |
12.600 |
8.100 |
34.500 |
|
Total |
321.900 |
347.200 |
1094.200 |
|
Less : Interest |
165.300 |
174.800 |
518.100 |
|
Exceptional
Item - Foreign Exchange Gain/(Loss) |
(93.900) |
(85.300) |
(200.700) |
|
Profit
from ordinary activities before tax |
62.700 |
87.100 |
375.400 |
|
|
|
|
|
|
3. Capital Employed (Segment Assets-Segment
Liabilities) |
|
|
|
|
Graphite |
9289.000 |
8806.300 |
9289.000 |
|
Power |
1722.600 |
1730.400 |
1722.600 |
|
Unallowable |
1507.200 |
1655.300 |
1507.200 |
|
Total |
12518.800 |
12192.000 |
12518.800 |
1. The figures of the corresponding previous period / year have been regrouped / recast / reclassified wherever considered necessary to correspond to current period / year classification.
2. The Company has exercised the option made available by the Notification dated 29th December 2011 issued by the Ministry of Corporate Affairs. Accordingly, during the quarter under review an amount of Rs. 52.100 Million (Loss) (Corresponding quarter of FY 2013-14 Rs. 32.300 Millions (Gain)) being exchange difference arising on reporting of Long Term Foreign Currency Loans availed for acquisition of depreciable fixed assets have been taken to respective assets/capital work-in-progress account.
3. The Company has reassessed the estimated useful life of its fixed assets through an independent Chartered Engineer in accordance with the guidance of schedule II of the Companies Act, 2013 and have found no significant difference in the same. Accordingly there is no impact of the same in quarter under review.
4. Operations at our Hydro Power Plant at Tawa are seasonal in nature. The plant generally remains closed in the 1st quarter, starts operating in the 2nd quarter, peaks in the 3rd quarter before tapering down in the last quarter.
5. Tax expenses include current tax, reversal of deferred tax pertaining to earlier years/period.
6. The above Unaudited financial results have been subjected to a Limited Review by the Statutory Auditors of the Company and reviewed by the Audit Committee and approved and taken on record by the Board at their respective meetings held on 05th February, 2015.
FIXED ASSETS:
- Land
- Buildings
- Buildings Plant and Equipment
- Railway Sidings
- Office Equipment
- Electrical Installation
- Furniture & Fixture
- Vehicles
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist organization
or whom notice had been received that all financial transactions involving
their assets have been blocked or convicted, found guilty or against whom a
judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction registered
against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent
government authority for any violation of anti-corruption laws or international
anti-money laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling shareholders,
director, officer or employee of the company is a government official or a
family member or close business associate of a Government official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report: No press reports / filings exists on the
subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on Corporate
Governance to identify management and governance. These factors often have been
predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.62.33 |
|
|
1 |
Rs.92.83 |
|
Euro |
1 |
Rs.68.08 |
INFORMATION DETAILS
|
Information
Gathered by : |
PPT |
|
|
|
|
Analysis Done by
: |
SUC |
|
|
|
|
Report Prepared
by : |
MTN |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL
CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILITY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
6 |
|
--CREDIT LINES |
1~10 |
7 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
DEFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
58 |
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.