MIRA INFORM REPORT
|
Report No. : |
309987 |
|
Report Date : |
27.02.2015 |
IDENTIFICATION DETAILS
|
Name : |
INDIAN METALS AND FERRO ALLOYS LIMITED |
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Registered
Office : |
IMFA
Building, Bomikhal, P.O. Rasulgarh, Bhubaneswar - 751010, Orissa |
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Country : |
India |
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Financials (as
on) : |
31.03.2014 |
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Date of
Incorporation : |
20.11.1961 |
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Com. Reg. No.: |
15-000428 |
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Capital Investment
/ Paid-up Capital : |
Rs. 259.800 Million |
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CIN No.: [Company Identification
No.] |
L27101OR1961PLC000428 |
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TAN No.: [Tax Deduction &
Collection Account No.] |
Not Available |
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PAN No.: [Permanent Account No.] |
Not Available |
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Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchanges. |
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Line of Business
: |
Subject is engaged in produces and sells ferro alloys and also
involved in the generation of electricity; and mining of chrome ores mines. |
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No. of Employees
: |
2432 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
A (56) |
|
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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Litigation : |
Clear |
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Comments : |
Subject is well-established company having fine track record. The company has reported decent profitability. However, there is a dip
in net profit for year 2013-2014. 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 as per 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 |
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Restricted |
C2 |
|
Off-credit |
D |
EXTERNAL AGENCY RATING
|
Rating Agency Name |
ICRA |
|
Rating |
Term loan: A |
|
Rating Explanation |
Adequate degree of safety and low credit risk. |
|
Date |
September 2013 |
|
Rating Agency Name |
ICRA |
|
Rating |
Fund based and Non – Fund based working capital Limits: A1 |
|
Rating Explanation |
Very strong degree of safety and carry lowest credit risk. |
|
Date |
September 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
31-03-2014.
INFORMATION DECLINED BY
|
Name : |
Mr. Subhash |
|
Designation : |
Finance Department |
|
Contact No.: |
91-9937299410 |
|
Date : |
26.02.2015 |
LOCATIONS
|
Registered Office : |
IMFA
Building, Bomikhal, P.O. Rasulgarh, Bhubaneswar - 751010, Orissa, India |
|
Tel. No.: |
Not Available |
|
Mobile No.: |
91-9937299410 (Mr. Subhash) |
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Fax No.: |
Not Available |
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E-Mail : |
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Website : |
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Plants: |
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Mines: |
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DIRECTORS
As on 31.03.2014
|
Name : |
Dr. B Panda |
|
Designation : |
Executive Chairman |
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Name : |
Mr. Baijayant Panda |
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Designation: |
Vice Chairman |
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Name : |
Mr. Subhrakant Panda |
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Designation : |
Managing Director |
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Name : |
Mr. J K Misra |
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Designation : |
Director (Corporate) and COO |
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Name : |
Mr. C R Ray |
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Designation : |
Whole-time Director |
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Name : |
Mrs. Paramita Mahapatra |
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Designation : |
Directors |
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Name : |
Mr. D Bandyopadhyay |
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Designation : |
Directors |
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Name : |
Major R N Misra (Retd.) |
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Designation : |
Directors |
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Name : |
Mr. N R Mohanty, Padma Shri |
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Designation: |
Directors |
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Name : |
Mr. N R Mohanty, Padma Shri |
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Designation : |
Directors |
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Name : |
Mr. Alexius Markus Amrein |
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Designation : |
Directors |
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Name : |
Mr. S P Mathur |
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Designation : |
Directors |
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Name : |
General Shankar Roychowdhury (Retd.) |
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Designation: |
Directors |
KEY EXECUTIVES
|
Name : |
Mr Prem Khandelwal |
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Designation : |
CFO and Company Secretary |
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|
Name : |
Mr. Subhash |
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Designation : |
Finance Department |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 31.12.2014
|
Category of Shareholders |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
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|
1288094 |
4.96 |
|
|
13126124 |
50.53 |
|
|
12444 |
0.05 |
|
|
12444 |
0.05 |
|
|
14426662 |
55.54 |
|
|
|
|
|
|
51456 |
0.20 |
|
|
51456 |
0.20 |
|
Total shareholding of Promoter and Promoter Group (A) |
14478118 |
55.73 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
2489174 |
9.58 |
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|
85143 |
0.33 |
|
|
163535 |
0.63 |
|
|
2737852 |
10.54 |
|
|
|
|
|
|
942913 |
3.63 |
|
|
|
|
|
|
1120911 |
4.32 |
|
|
798969 |
3.08 |
|
|
5898290 |
22.71 |
|
|
20 |
0.00 |
|
|
210099 |
0.81 |
|
|
5634759 |
21.69 |
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|
2501 |
0.01 |
|
|
50858 |
0.20 |
|
|
53 |
0.00 |
|
|
8761083 |
33.73 |
|
Total Public shareholding (B) |
11498935 |
44.27 |
|
Total (A)+(B) |
25977053 |
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) |
25977053 |
0.00 |
BUSINESS DETAILS
|
Line of Business : |
Subject is engaged in produces and sells ferro alloys and
also involved in the generation of electricity; and mining of chrome ores
mines. |
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Brand Names : |
Not Divulged |
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Agencies Held : |
Not Divulged |
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Exports : |
Not Divulged |
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Imports : |
Not Divulged |
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Terms : |
Not Divulged |
PRODUCTION STATUS NOT AVAILABLE
GENERAL INFORMATION
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Suppliers : |
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Customers : |
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No. of Employees : |
2432 (Approximately) |
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Bankers : |
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Facilities : |
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Banking
Relations : |
-- |
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Auditors : |
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Name : |
Haribhakti and Company Chartered Accountants |
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Memberships : |
-- |
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Collaborators : |
-- |
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Subsidiaries: |
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Enterprises over which KMP’s and/or their relatives are
able to exercise significant influence (with whom transactions have taken place
during the year ): |
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CAPITAL STRUCTURE
As on 31.03.2014
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
3,00,00,000 |
Equity Shares |
Rs.10/- each |
Rs. 300.000 Million |
|
|
Preference Shares: |
|
|
|
40,000 |
Redeemable Cumulative Preference
Shares |
Rs.100/- each |
Rs. 4.000 Million |
|
2,60,000 |
IInd Series Redeemable Cumulative Preference Shares |
Rs.100/- each |
Rs. 26.000 Million |
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|
|
|
|
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Total |
|
Rs. 330.000
Million |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
2.59,77,053 |
Equity Shares |
Rs.10/- each |
Rs. 259.800
Million |
|
|
|
|
|
NOTE:
Reconciliation of equity shares
outstanding is set out below:
|
Equity Shares |
No. of shares |
Rs. In Millions |
|
Shares outstanding at the beginning of the year |
2,59,77,053 |
259.000 |
|
Shares allotted during the year |
NIL |
NIL |
|
Shares cancelled during the year |
NIL |
NIL |
|
Shares outstanding at the end of the year |
2,59,77,053 |
259.800 |
Rights,
preferences & restrictions in respect of each class of shares
The
Company’s
authorised share capital consists of two classes of shares, referred to as
equity shares and preference shares, having par value of Rs.10/- and Rs.100/- each respectively.
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,
except in case of interim dividend.
In the
event of liquidation of the company, the holders of equity shares are eligible
to receive the remaining assets
of the
company after distribution of all the preference amounts, in proportion to
their shareholding.
The
preference shareholders have a preferential right over equity shareholders in
respect of repayment of capital
and
payment of dividend.
Details of Shareholders holding
more than 5% shares in the Company
|
Name of the Shareholder |
As at 31st March, 2014 |
|
|
|
No. of shares |
% held |
|
LITEC Company Limited |
38,44,259 |
14.80 |
|
Barabati Investment and Trading Co Private Limited |
26,34,778 |
10.14 |
|
Paramita Investments and Trading Company Private Limited |
26,34,778 |
10.14 |
|
KB Investment Private Limited |
25,16,401 |
9.69 |
|
Madhuban Investment Private Limited |
23,95,696 |
9.22 |
|
Reliance
Capital Trustee Company Limited - A/c Reliance Tax Saver (ELSS) Fund |
14,95,974 |
5.76 |
Shares
allotted as fully paid-up without payment being received in cash (during 5
years preceding 31st March, 2014)
25,11,754 equity shares were allotted to the Shareholders of Utkal Manufacturing and Services Limited upon acquisition of its assets by the Company in the year 2009-10, pursuant to the Scheme of Demerger of its Ferro Alloys Division.
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 |
259.800 |
259.800 |
259.800 |
|
(b) Reserves & Surplus |
8296.200 |
7996.200 |
7609.300 |
|
(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) |
8556.000 |
8256.000 |
7869.100 |
|
|
|
|
|
|
(3) Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
7950.500 |
6670.700 |
5794.900 |
|
(b) Deferred tax liabilities
(Net) |
783.900 |
542.100 |
203.100 |
|
(c) Other long term
liabilities |
1104.700 |
1092.000 |
985.600 |
|
(d) long-term provisions |
43.700 |
31.100 |
34.000 |
|
Total
Non-current Liabilities (3) |
9882.800 |
8335.900 |
7017.600 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a) Short term borrowings |
1604.600 |
1944.200 |
1332.500 |
|
(b) Trade payables |
1718.900 |
1243.800 |
1574.800 |
|
(c) Other current liabilities |
1843.400 |
1570.700 |
1459.500 |
|
(d) Short-term provisions |
185.800 |
227.800 |
1643.800 |
|
Total
Current Liabilities (4) |
5352.700 |
4986.500 |
6010.600 |
|
|
|
|
|
|
TOTAL |
23791.500 |
21578.400 |
20897.300 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i) Tangible assets |
11078.800 |
10066.700 |
5081.900 |
|
(ii) Intangible Assets |
0.000 |
0.000 |
0.000 |
|
(iii) Capital work-in-progress |
781.600 |
2350.200 |
6025.600 |
|
(iv) Intangible assets under
development |
39.000 |
0.000 |
0.000 |
|
(b) Non-current Investments |
1673.700 |
1654.100 |
1393.700 |
|
(c) Deferred tax assets (net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
1131.400 |
932.100 |
1144.000 |
|
(e) Other Non-current assets |
0.000 |
36.300 |
115.800 |
|
Total
Non-Current Assets |
14704.500 |
15039.400 |
13761.000 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a) Current investments |
120.900 |
231.400 |
3296.900 |
|
(b) Inventories |
3726.600 |
3191.300 |
364.400 |
|
(c) Trade receivables |
567.800 |
463.100 |
194.000 |
|
(d) Cash and cash equivalents |
198.400 |
621.000 |
0.000 |
|
(e) Short-term loans and
advances |
4457.800 |
2031.900 |
3274.300 |
|
(f) Other current assets |
15.500 |
0.300 |
6.700 |
|
Total
Current Assets |
9087.000 |
6539.000 |
7136.300 |
|
|
|
|
|
|
TOTAL |
23791.500 |
21578.400 |
20897.300 |
PROFIT & LOSS ACCOUNT
|
|
PARTICULARS |
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
|
SALES |
|
|
|
|
|
Income |
13178.500 |
12732.500 |
11925.400 |
|
|
Other Income |
220.300 |
77.600 |
56.400 |
|
|
TOTAL
(A) |
13398.800 |
12810.100 |
11981.800 |
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
Cost of Materials Consumed |
6894.800 |
6356.800 |
6748.600 |
|
|
Changes in inventories of
finished goods, work-in-progress and Stock-in-Trade |
(654.500) |
451.200 |
(310.500) |
|
|
Employees benefits expense |
1184.600 |
1026.200 |
926.700 |
|
|
Other expenses |
2767.000 |
2329.400 |
2270.500 |
|
|
Prior period income |
0.000 |
-22.800 |
-0.200 |
|
|
Exceptional items |
0.000 |
119.900 |
0.000 |
|
|
TOTAL
(B) |
10191.900 |
10260.700 |
9635.100 |
|
|
|
|
|
|
|
Less |
PROFIT/
(LOSS) BEFORE INTEREST, TAX,
DEPRECIATION AND AMORTISATION (C) |
3206.900 |
2549.400 |
2346.700 |
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
1185.600 |
699.700 |
832.000 |
|
|
|
|
|
|
|
|
PROFIT
/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
2021.300 |
1849.700 |
1514.700 |
|
|
|
|
|
|
|
Less/
Add |
DEPRECIATION/
AMORTISATION (F) |
1490.200 |
816.900 |
551.800 |
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) BEFORE TAX (E-F) (G) |
531.100 |
1032.800 |
962.900 |
|
|
|
|
|
|
|
Less |
TAX
(I) |
139.900 |
493.900 |
323.600 |
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) AFTER TAX (G-I)
(J) |
391.200 |
538.900 |
639.300 |
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD (K) |
3947.800 |
3614.800 |
3190.500 |
|
|
|
|
|
|
|
|
Proposed dividend (including
tax on dividend) |
91.200 |
152.000 |
151.000 |
|
|
Transfer to general reserve |
40.000 |
53.900 |
64.000 |
|
|
Balance
Carried to the B/S |
4207.800 |
3947.800 |
3614.800 |
|
|
|
|
|
|
|
|
EARNINGS
IN FOREIGN CURRENCY |
|
|
|
|
|
F.O.B. Value of Exports |
10426.900 |
9512.100 |
9397.000 |
|
|
TOTAL
EARNINGS |
10426.900 |
9512.100 |
9397.000 |
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
Raw Materials |
2563.800 |
2908.000 |
1841.300 |
|
|
Components and Stores parts |
60.000 |
182.400 |
131.800 |
|
|
Capital Goods |
0.000 |
26.900 |
1.500 |
|
|
TOTAL
IMPORTS |
2623.800 |
3117.300 |
1974.600 |
|
|
|
|
|
|
|
|
Earnings
/ (Loss) Per Share (Rs.) |
15.06 |
20.74 |
24.61 |
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2014 1st Quarter |
30.09.2014 2nd Quarter |
31.12.2014 3rd Quarter |
|
Audited / UnAudited |
UnAudited |
UnAudited |
UnAudited |
|
Net Sales |
3013.100 |
3480.300 |
2922.600 |
|
Total Expenditure |
2436.700 |
2878.600 |
2506.300 |
|
PBIDT (Excl OI) |
576.400 |
601.700 |
416.300 |
|
Other Income |
65.400 |
56.600 |
62.300 |
|
Operating Profit |
641.800 |
658.300 |
478.600 |
|
Interest |
308.600 |
276.600 |
252.600 |
|
Exceptional Items |
0.000 |
(52.200) |
0.000 |
|
PBDT |
333.200 |
329.500 |
226.000 |
|
Depreciation |
290.000 |
292.200 |
315.500 |
|
Profit Before Tax |
43.200 |
37.300 |
(89.500) |
|
Tax |
23.200 |
31.600 |
(52.100) |
|
Provisions and contingencies |
0.000 |
0.000 |
0.000 |
|
Profit After Tax |
20.000 |
5.700 |
(37.400) |
KEY RATIOS
|
PARTICULARS |
|
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
Net Profit Margin (PAT / Sales) |
(%) |
2.97 |
4.23 |
5.36 |
|
|
|
|
|
|
|
Operating Profit Margin (PBIDT/Sales) |
(%) |
24.33 |
20.02 |
19.68 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
2.49 |
5.88 |
7.14 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.06 |
0.13 |
0.12 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt /Networth) |
|
1.12 |
1.04 |
0.91 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.70 |
1.31 |
1.19 |
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 |
259.800 |
259.800 |
259.800 |
|
Reserves & Surplus |
7609.300 |
7996.200 |
8296.200 |
|
Net
worth |
7869.100 |
8256.000 |
8556.000 |
|
|
|
|
|
|
long-term borrowings |
5794.900 |
6670.700 |
7950.500 |
|
Short term borrowings |
1332.500 |
1944.200 |
1604.600 |
|
Total
borrowings |
7127.400 |
8614.900 |
9555.100 |
|
Debt/Equity
ratio |
0.906 |
1.043 |
1.117 |
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 |
11925.400 |
12732.500 |
13178.500 |
|
|
|
6.768 |
3.503 |
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 |
11925.400 |
12732.500 |
13178.500 |
|
Profit |
639.300 |
538.900 |
391.200 |
|
|
5.36% |
4.23% |
2.97% |
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 |
Yes |
FINANCIAL RESULTS
The
Company’s turnover
grew by 3.5% to reach a new high of Rs.13178.500 Million (previous year:
Rs.12732.500 Million) including record foreign exchange earnings of
Rs.10426.900 Million (previous year: Rs.9512.100 Million) thereby breaching the
thousand Million mark for the first time. However, while EBIDTA increased by
21% to Rs.3206.900 Million (previous year: Rs.2646.500 Million), profit after
tax declined by 27% to Rs.391.200 Million (previous year: Rs.538.900 Million)
mainly on account of increase in depreciation and interest due to
capitalisation of both the units of the 120 MW captive power plant.
OPERATIONS
Ferro Alloys
The
production of ferro chrome during the year increased by 14% to 198,063 tonnes
(previous year: 174,348 tonnes). The 48 MVA furnace at Therubali has been
converted to run on ferro chrome and was switched on in January 2014; with this
all six furnaces will now produce ferro chrome.
Electricity
The
Directors are pleased to inform that the second unit of the 2x60 MW captive
power plant was also synchronised on 30th June, 2013 and, thus, both the units
are now put to use and running successfully. During the year the Company
generated 910 mus of electricity (previous year: 792 mus) and sold 54.79 mus to
Gridco. Generation was mainly restricted to captive requirement with only a
small sale to Gridco as required as per synchronisation agreement for 120 MW
power plant. Any additional sale of power to Gridco was restricted to bare
minimum on account of low rate offered for surplus power from CGPs.
Mining
Chrome
Ore produced during the year increased by 29% to 505,172 tonnes as compared to
390,649 tonnes during the previous year in line with captive requirement. The
Nuasahi Chromite Mines restarted in January 2013 pursuant to an order of the
Hon’ble Orissa High Court while
operations at the Mahagiri Chromite Mines were briefly disrupted during the
year and restarted in January 2014 upon extension of environmental clearance by
Ministry of Environment and Forests (MoEF), Government of India. Meanwhile,
operations at Sukinda Chromite Mines were stopped with effect from 1st April,
2014 since extension of environment clearance which expired on 31st March, 2014
was still under process. The proposal has been recommended by the Expert
Appraisal Committee of the MoEF and extension of environment clearance is
expected shortly. It is pertinent to note here that the Company has
consistently followed in letter and spirit the practice of value addition and
limited ore raising from its captive mines to that required for captive
consumption thus maximising contribution to the exchequer. The Directors shall
pursue the allotment of balance 50% requirement of captive chrome ore and take
all necessary steps to protect the Company’s
interests in this regard given the importance of raw material security
particularly in light of plans to further expand smelting capacity.
AWARDS AND RECOGNITIONS
During
the year the Company has been awarded:
(i)
Best Export/Foreign Exchange Earner Award in the “Mega and Very Large Scale Industry” category by Utkal Chamber of
Commerce and Industry (UCCI) based on its performance of the last 3 years.
(ii)
Kalinga Safety Award 2012 in Steel Sector Category at Odisha State Safety
Conclave 2013.
MANAGEMENT DISCUSSION
AND ANALYSIS
FERRO CHROME INDUSTRY
Ferro
chrome is a value-added intermediate product which imparts the non-corrosive
property to stainless steel. It is mainly used as an additive for making
different grades of stainless steel and special alloy steel. Chrome Ore About 72% of the world’s chrome ore reserves are found
in South Africa while Kazakhstan, Zimbabwe, India and Turkey also have
significant reserves. India, specifically, has approximately 1.8% of the world’s chrome ore reserves with the
bulk of it in Odisha.
World
output of 30.3 million tonnes in 2013 represented an increase of 9% of the
previous year with the African continent - mainly South Africa - accounting for
the lion’s share of
16.18 million tonnes. Raising of chrome ore in India, however, came down by
23.7% to 2.55 million tonnes.
Ferro Chrome
Ferro
Chrome accounts for 95% of chrome ore demand with the rest finding use in the
chemical and refractory industries. The global production of ferro chrome rose by
10% to 10.8 million tonnes in 2013 with China accounting for approximately 4
million tonnes (increase of 14%) thus maintaining its position as the largest
producer. Meanwhile, South Africa accounted for 3.2 million tonnes (increase of
7%) while Indian production remained stagnant just short of the 1 million tonne
mark. China has defied conventional wisdom to become
the
largest producer of ferro chrome (37% of world output) despite not having any
chrome ore of its own while South Africa accounted for only 30% of ferro chrome
output despite having 72% of the world’s
chrome ore reserves. A staggering 90% of the total chrome ore imports worldwide
are by China and, increasingly, South Africa is the main source. Thus, there is
a confluence of interests of sorts given that value addition in South Africa
has been hampered by energy shortages and sharp rise in electricity prices.
Also, availability of UG2 ore - a by-product of platinum mining - from South
Africa has increasingly become an important factor although an ongoing strike
has had some effect on availability and prices.
OUTLOOK
The
chromium industry is at the crossroads buffeted by rising costs, stagnant
prices and the dominance of China. However, historically, stainless steel has
been one of the fastest growing commodities and this trend is likely to
continue thereby auguring well for ferro chrome. Moreover, while it remains to
be seen if the Chinese model is viable in the long term given that it is
dependent on imported ore, there are challenges even in traditional ferro
chrome producing countries. Therefore, the outlook is dependent upon
circumstances pertaining to regions and individual companies. The Company is
confident about the future given the integrated nature of its operations, its
location which is ideal to cater to demand from the Far East which is the
epicentre of the stainless steel industry at present as well as domestic demand
when it picks up, and the focus on continuous improvement leading to greater
efficiency.
INDEX
OF CHARGES
|
S.NO. |
CHARGE ID |
DATE OF CHARGE
CREATION/MODIFICATION |
CHARGE AMOUNT
SECURED |
CHARGE HOLDER |
ADDRESS |
SERVICE REQUEST
NUMBER (SRN) |
|
1 |
10530784 |
13/11/2014 |
589,000,000.00 |
STANDARD CHARTERED BANK (ACTING AS AN SECURITY AGE |
FOR & ON BEHALF
OF STANDARD CHARTERED BANK,LONDON) |
C33313578 |
|
2 |
10529129 |
31/10/2014 |
100,000,000.00 |
INDIAN OVERSEAS BANK |
BHUBANESWAR MAIN
BRANCH, 121 FIRST FLOOR,, NEW ST |
C32271173 |
|
3 |
10520399 |
10/02/2015 * |
4,300,000,000.00 |
IL & FS TRUST COMPANY LIMITED |
IL & FS
FINANCIAL CENTREPLOT NO C22 G BLOCK BANDRA |
C43364355 |
|
4 |
10520543 |
10/02/2015 * |
750,000,000.00 |
ICICI BANK LIMITED |
LANDMARKRACE COURCE
CIRCLE, ALKAPURI, BARODA, GUJ |
C43791318 |
|
5 |
10487699 |
25/08/2014 * |
500,000,000.00 |
IDBI BANK LIMITED |
IDBI TOWER WTC
COMPLEX, CUFFE PARADE, MUMBAI, MAH |
C19877232 |
|
6 |
10487707 |
28/03/2014 |
200,000,000.00 |
CORPORATION BANK |
CORPORATION BANK, UNIT
-III, KHARABELA NAGAR, STA |
C02182616 |
|
7 |
10488853 |
15/09/2014 * |
300,000,000.00 |
ICICI BANK LIMITED |
LANDMARK RACE
COURCE CIRCLE, ALKAPURI, VADODARA, |
C21839923 |
|
8 |
10449256 |
17/09/2013 * |
600,000,000.00 |
ICICI BANK LIMITED |
2B GORKY TERRACE,
KOLKATA, WEST BENGAL - 700017, I |
B85217412 |
|
9 |
10394591 |
22/12/2012 |
127,500,000.00 |
SREI EQUIPMENT FINANCE PRIVATE LIMITED |
'VISHWAKARMA', 86C,
TOPSIA ROAD,, KOLKATA, WEST BE |
B65029266 |
|
10 |
10388723 |
23/11/2012 |
700,000,000.00 |
DBS BANK LIMITED |
4A, NANDALAL BASU
SARANI, KOLKATA, WEST BENGAL - 7 |
B62860846 |
* Date of charge modification
CONTINGENT
LIABILITIES:
(Rs. in million)
|
PARTICULARS |
31.03.2014 |
31.03.2013 |
|
Guarantees : |
|
|
|
Guarantees issued by Banks (Margin money against above Rs.2.800 Million; Previous Year Rs.25.400 Million) |
58.400 |
209.200 |
|
Guarantee given by the Company to a corporate on behalf of Utkal Coal Limited, a subsidiary |
275.000 |
1592.100 |
|
Claims
against the Company not acknowledged as debts: Government Claims |
|
|
|
Income Tax (deposits made under protest Rs.542.900 Million; Previous Year Rs.420.100 Million) |
1097.800 |
2409.700 |
|
Customs and Central Excise (deposits made under protest Rs.1.800 Million; Previous Year Rs.1.900 Million) |
7.600 |
65.400 |
|
Provisional duty bonds to customs authority pending final debonding of 100% EOU |
Amount
not quantifiable |
Amount
not quantifiable |
|
Sales tax and Entry tax (deposits made under protest Rs.60.000 Million; Previous Year Rs.38.800 Million) |
147.700 |
93.500 |
|
State
Govt./Local Authority duties, levies and cess etc. disputed by the Company |
2313.100 |
284.500 |
|
Other
Claims Legal
suits filed against the Company in earlier years |
15.300 |
17.000 |
UNAUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED AND NINE MONTHS ENDED 31, DECEMBER, 2014
(Rs. In Million)
|
Particulars
|
Quarter Ended ( Unaudited) |
Quarter Ended ( Unaudited) |
Year to date ( Unaudited) |
|
|
31.12.2014 |
30.09.2014 |
31.12.2014 |
|
|
|
|
|
|
1. Income
from operations |
|
|
|
|
a) Net sales/ Income from operation (net of excise duty) |
2787.900 |
3323.300 |
8969.100 |
|
b) Other operating income |
134.700 |
157.000 |
446.900 |
|
Total
income from Operations(net) |
2922.600 |
3480.300 |
9416.000 |
|
2.Expenditure |
|
|
|
|
a) Cost of material consumed |
1738.400 |
1152.700 |
4666.100 |
|
b) Changes in inventories of finished goods,
work-in-progress and stock-in-trade |
(293.800) |
798.100 |
207.500 |
|
c) Employees benefit expenses |
305.600 |
304.500 |
920.500 |
|
d) Depreciation and amortization expenses |
315.500 |
292.200 |
897.700 |
|
e) Other expenditure |
756.100 |
623.300 |
2027.500 |
|
Total expenses |
2821.800 |
3170.800 |
8719.300 |
|
3. Profit
from operations before other income and financial costs |
100.800 |
309.500 |
696.700 |
|
4. Other income |
62.300 |
56.600 |
184.300 |
|
5.
Profit from ordinary activities before finance costs |
163.100 |
366.100 |
881.000 |
|
6. Finance costs |
252.600 |
276.600 |
837.800 |
|
7. Net profit/(loss) from
ordinary activities after finance costs but before exceptional items |
(89.500) |
89.500 |
43.200 |
|
8. Exceptional item |
0.000 |
52.200 |
52.200 |
|
9. Profit from ordinary activities
before tax Expense: |
(89.500) |
37.300 |
(9.000) |
|
10.Tax
expenses |
|
|
|
|
Current Tax & Deferred Tax |
(68.500) |
40.300 |
6.600 |
|
MAT Credit Entitlement (including earlier years) |
16.400 |
(8.700) |
(3.900) |
|
11.Net Profit / (Loss) from ordinary activities
after tax (9-10) |
(37.400) |
5.700 |
(11.700) |
|
12.Extraordinary Items (net of tax expense) |
0.000 |
0.000 |
0.000 |
|
13.Net Profit / (Loss) for
the period (11 -12) |
(37.400) |
5.700 |
(11.700) |
|
14.Paid-up equity share capital (Nominal
value Rs.10/- per share) |
259.800 |
259.800 |
259.800 |
|
15. Reserve excluding Revaluation Reserves as per balance sheet of
previous accounting year |
-- |
-- |
-- |
|
16.i) Earnings per
share-Basic & Diluted (in Rupees) |
(1.44) |
0.22 |
(0.45) |
|
Particulars
|
Quarter Ended ( Unaudited) |
Quarter Ended ( Unaudited) |
Year to date ( Unaudited) |
|
|
31.12.2014 |
30.09.2014 |
31.12.2014 |
|
A. Particulars of shareholding |
|
|
|
|
1. Public Shareholding |
|
|
|
|
- Number of shares |
11498935 |
11498935 |
11498935 |
|
- Percentage of shareholding |
44.27 |
44.27 |
44.27 |
|
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 |
14478118 |
14478118 |
14478118 |
|
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) |
55.73 |
55.73 |
55.73 |
|
|
|
|
|
|
B.
Investor Complaints |
|
|
|
|
Pending at the beginning of the quarter |
NIL |
|
|
|
Receiving during the quarter |
80 |
|
|
|
Disposed of during the quarter |
80 |
|
|
|
Remaining unreserved at the end of the quarter |
NIL |
|
|
UNAUDITED SEGMENT
WIE REVENUE, RESULTS AND CAPITAL EMPLOYED
(Rs. In
Million)
|
Particulars
|
Quarter Ended ( Unaudited) |
Quarter Ended ( Unaudited) |
Year to date ( Unaudited) |
|
|
31.12.2014 |
30.09.2014 |
31.12.2014 |
|
1. Segment Revenue |
|
|
|
|
a. Ferro Alloys |
2784.000 |
3321.500 |
8916.500 |
|
b. Power |
976.800 |
782.300 |
2823.200 |
|
c. Others |
5.500 |
3.500 |
14.800 |
|
Total |
3766.300 |
4107.300 |
11754.500 |
|
Less : Inter Segment Revenue |
978.400 |
784.000 |
2785.400 |
|
Net Income from
Operations |
2787.900 |
3323.300 |
8969.100 |
|
|
|
|
|
|
2. Segment Result |
|
|
|
|
a. Ferro Alloys |
465.800 |
550.500 |
1522.600 |
|
b. Power |
(17.900) |
(14.500) |
(97.900) |
|
c. Others |
(2.500) |
2.300 |
7.700 |
|
Total |
445.400 |
533.700 |
1417.000 |
|
Less : i) Finance Costs |
252.600 |
276.600 |
837.800 |
|
ii) Other Un-allocable Expenditure (net) |
282.300 |
219.800 |
588.200 |
|
iii) Un-allocable Income |
0.000 |
0.000 |
0.000 |
|
Profit before Tax |
(89.500) |
37.300 |
(9.000) |
|
|
|
|
|
|
3. Capital Employed (Segment
Assets-Segment Liabilities) |
|
|
|
|
a. Ferro Alloys |
6486.900 |
6325.500 |
6486.900 |
|
b. Power |
7442.000 |
7469.600 |
7442.200 |
|
c. Others |
773.300 |
754.500 |
773.300 |
|
d. Unallocated |
4847.900 |
4095.400 |
4847.900 |
|
Total |
19550.100 |
18645.000 |
19550.100 |
NOTE:
The above unaudited financial results have been reviewed by the Audit Committee and approved by the Board of Directors of the Company at their respective meetings held on February 3rd, 2015. The Statutory Auditors of the Company have reviewed the said results.
The entire operations of the Company relate to two broad segments viz. 'Ferro Alloys' and 'Power'.
In accordance with the requirements of Schedule II to the Companies Act, 2013, the Company reassessed the remaining useful lives of tangible fixed assets with effect from April 1st, 2014, based on internal technical evaluation. Accordingly, their carrying values as on that date, net of residual values, are depreciated over their revised remaining useful lives. As a result of this change, the depreciation charge for the quarter and nine months ended December 31st, 2014 was lower by Rs. 72.000 Million and Rs. 215.600 Million respectively. In terms of MCA notification dated 29th August, 2014 amending Schedule II, the carrying amount of assets (after retaining the residual value), whose remaining useful lives have been reassessed to be nil as at April 1st, 2014, has been recognised in the Statement of Profit and Loss as an exceptional item.
The Hon’ble Supreme Court of India vide its Order dated September 24th, 2014 cancelled a number of coal blocks allotted to various companies including ‘Utkal C’ block held by Utkal Coal Limited (UCL), an SPV in which the Company holds 79.2% equity. Subsequently, on October 21st, 2014, The Coal Mines (Special Provisions) Ordinance, 2014 was promulgated to facilitate auction of coal blocks which, inter alia, provided for compensation to a prior allottee. Accordingly, UCL has furnished details of it’s investments made on land, mine infrastructure etc for determination of the compensation amount by the nominated authority and presently no provision is deemed necessary against the Company’s exposure in UCL as at December 31st, 2014 amounting to Rs 1108.800 Million invested as equity, Rs 1407.900 Million given as unsecured loan and Rs 920.000 Million as guarantee to a financial institution for loan availed by UCL
In view of the circumstances detailed above and in terms of paragraph 9 of Accounting Standard 9 on “Revenue Recognition”, with effect from October 1st, 2014 the Company has not recognised income from interest on unsecured loan given to UCL. Due to this, Net Loss for the quarter and nine months ended December 31st, 2014 is higher by Rs 43.900 Million.
Operations during the quarter was affected due to closure of Sukinda mine until September 30th, 2014 and consequent lower production and inventory levels. With the mines restarting, all furnaces have since been switched on and operations have stabilized
Figures pertaining to the previous year / period have been regrouped / rearranged, reclassified and restated, wherever considered necessary, to make them comparable with those of current period.
FIXED ASSETS
- Freehold Land
- Buildings
- Railway Siding and Runways
- Office Equipments
- Computer System Machineries
- Plant and Machinery
- Furniture and Fixtures
- Vehicles
- Aircrafts
- Leasehold Land
- Plan and Machinery
- acquired on finance lease
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No exist to suggest that subject is or was
the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject are
derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals have
been formally charged or convicted by a competent governmental authority for
any financial crime or under any formal investigation by a competent government
authority for any violation of anti-corruption laws or international anti-money
laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.61.94 |
|
|
1 |
Rs.96.24 |
|
Euro |
1 |
Rs.70.39 |
INFORMATION DETAILS
|
Information
Gathered by : |
DIP |
|
|
|
|
Analysis Done by
: |
SUC |
|
|
|
|
Report Prepared
by : |
KVT |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL
CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILITY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
6 |
|
--CREDIT LINES |
1~10 |
6 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
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 |
|
46 |
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.