Annexure XIV Continuedâ¦ - Edelweiss

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Other income decreased by ` 197.19 million, or 49.29%, to ` 202.87 million in Fiscal 2010 from ` 400.06 million in Fiscal 2009, primarily due to the fact that we did not receive any proceeds from maturing key man insurance policies in Fiscal 2010 like we did in Fiscal 2009, as discussed below. We do not have any outstanding key man insurance policies as of the date of this Draft Red Herring Prospectus. Expenditure Total expenditure increased by ` 2,212.03 million, or 37.02%, to ` 8,189.57 million in Fiscal 2010 from ` 5,977.54 million in Fiscal 2009. This is primarily attributable to the following factors: Purchase of coal Purchase of coal increased by ` 713.06 million, or 47.84%, to ` 2,203.54 million in Fiscal 2010 from ` 1,490.48 million in Fiscal 2009. The quantity of raw coal purchased in e-auction increased to 1.01 million tons in Fiscal 2010 from 0.62 million tons in Fiscal 2009 and the average price per ton, inclusive of transportation costs, was ` 1,512.38 during Fiscal 2010 compared to ` 1,455.72 in Fiscal 2009. There was no significant variation in quantities and average purchase price of coal rejects during Fiscal 2010 compared to Fiscal 2009. In addition, the purchase of coal increased due to the acquisition of Spectrum Coal. Purchase of coal as a percentage of total income increased from 15.96% in Fiscal 2009 to 20.63% in Fiscal 2010. Increase in stock Our stock increased by ` 153.10 million in Fiscal 2010 as compared to Fiscal 2009, primarily as a result of the increased cost of purchases of e-auction coal and the increased cost of purchasing and processing coal rejects. Increase in stock represented 2.51% and 1.43% of our total income in Fiscal 2009 and Fiscal 2010, respectively. Direct expenses Direct expenses increased by ` 752.14 million, or 26.10%, to ` 3,633.53 million in Fiscal 2010 from ` 2,881.39 million in Fiscal 2009, primarily due to an increase in our coal operations resulting from the acquisition of Spectrum Coal. In particular, increased expenses relate to power and fuel costs, which increased by ` 74.30 million, or 55.84%, to ` 207.35 million in Fiscal 2010 from ` 133.05 million in Fiscal 2009, and repair and maintenance of plant and machinery, which increased by ` 235.54 million, or 86.17%, to ` 508.89 million in Fiscal 2010 from ` 273.35 million in Fiscal 2009. Increased expenses also relate to materials consumed, transportation and loading charges and expenses related to the repair, running and maintenance of building and vehicles. Direct expenses as a percentage of total income increased from 30.86% in Fiscal 2009 to 34.01% in Fiscal 2010. Personnel cost Our personnel cost increased by ` 130.66 million, or 30.92%, to ` 553.20 million in Fiscal 2010 from ` 422.54 million in Fiscal 2009, primarily due to an increase in personnel related to the acquisition of Spectrum Coal and an increase in employee costs due to growth in the number of employees and an annual increase in salaries. In Fiscal 2010, we incurred salaries, wages and bonus expenses of ` 499.51 million, compared to ` 381.41 million in Fiscal 2009. We also incurred contribution to provident and other fund expenses of ` 28.87 million in Fiscal 2010, compared to ` 22.78 million in Fiscal 2009, and staff welfare expenses of ` 24.83 million in Fiscal 2010 compared to ` 18.35 million in Fiscal 2009. Personnel cost as a percentage of total income increased from 4.53% in Fiscal 2009 to 5.18% in Fiscal 2010. Administrative and selling expenses Administrative and selling expenses increased by ` 165.79 million, or 25.88%, to ` 806.34 million in Fiscal 2010 from ` 640.55 million in Fiscal 2009, primarily due to an increase in administrative and selling expenses related to the acquisition of Spectrum Coal, an increase in rent of ` 37.05 million, an increase in rates, fees and taxes of ` 24.01 million, a decrease in legal and professional fees of ` 18.15 million, an increase in travelling and conveyance of ` 5.30 million, a decrease in coal handling charges paid to various agencies of ` 38.73 million, a decrease in bad debts written off of ` 44.88 and an increase in provision for doubtful advances of ` 50.06 million. However, there was also an increase in administrative and selling expenses primarily due to an increase in bank charges of ` 10.46 million and an increase in deductions related to the quality/quantity of our 293
products as charged by the customers, which increased by ` 75.83 million, or 42.46%, to ` 254.43 million in Fiscal 2010 from ` 178.60 million in Fiscal 2009. We also had a loss of stock due to fire of ` 26.04 million in Fiscal 2010. Administrative and selling expenses as a percentage of total income increased from 6.86% in Fiscal 2009 to 7.55% in Fiscal 2010. Depreciation Depreciation increased by ` 231.92 million, or 47.71%, to ` 718.04 million in Fiscal 2010 from ` 486.12 million in Fiscal 2009, primarily due to the increase in fixed assets resulting from the acquisition of Spectrum Coal. Depreciation as a percentage of total income increased from 5.21% in Fiscal 2009 to 6.72% in Fiscal 2010. Finance cost Finance costs increased by ` 137.57 million, or 47.36%, to ` 428.02 million in Fiscal 2010 from ` 290.45 million in Fiscal 2009, primarily due to increased indebtedness resulting from the acquisition of Spectrum Coal, including the assumption of certain obligations of Spectrum Coal, and our increase in working capital requirements. For further details on the obligations assumed, please see the section titled "Financial Indebtedness" on page 270 of this Draft Red Herring Prospectus. Finance cost as a percentage of total income increased from 3.11% in Fiscal 2009 to 4.01% in Fiscal 2010. Profit before tax and adjustments As a result of the foregoing, profit before taxation decreased by ` 865.40 million, or 25.76%, to ` 2,493.95 million in Fiscal 2010 from ` 3,359.35 million in Fiscal 2009. Provision for tax The provision for tax liabilities decreased by ` 164.46 million, or 14.88%, to ` 940.93 million in Fiscal 2010 from ` 1,105.39 million in Fiscal 2009, primarily due to decreased profitability. Profit after tax As a result of the foregoing, net profit after tax (before adjustments) decreased by ` 700.94 million, or 31.10%, to ` 1,553.02 million in Fiscal 2010 from ` 2,253.96 million in Fiscal 2009. As a percentage of total income, net profit after tax decreased to 14.54% in Fiscal 2010 from 24.14% in Fiscal 2009. Restatement Our profit for Fiscal 2010 increased by ` 21.92 million and our profit for Fiscal 2009 decreased by ` 77.92 million as a result of adjustments for prior period items and restatements in accordance with ICDR Regulations. For details of these adjustments, please see <strong>Annexure</strong> IV to our restated consolidated financial information included on page F-17 of this Draft Red Herring Prospectus. Comparison of Fiscal 2009 and Fiscal 2008 Income The following table sets forth our income from our businesses for Fiscal 2008 and Fiscal 2009: Fiscal Fiscal Variation 2008 2009 % (` in millions, except percentages) Coal beneficiation and allied receipts ............................................ 2,324.22 3,027.43 30.26% Sale of coal .................................................................................... 1,940.54 4,780.38 146.34% Sale of power ................................................................................. 569.80 635.77 11.58% Sale of sponge iron (1) .................................................................... 545.34 439.17 -19.47% Sale of equipment .......................................................................... 24.68 54.08 119.12% Other income ................................................................................ 174.59 400.06 129.14% 294
Page 1 and 2: e) Enterprises over which key manag
Page 3 and 4: Annexure XIV continued... (Amount i
Page 5 and 6: For the year ended 31 March 2008 Pa
Page 7 and 8: Annexure XIV continued... For the y
Page 9 and 10: Statement of segment reporting, as
Page 11 and 12: FINANCIAL INDEBTEDNESS Set forth be
Page 13 and 14: Sr. No. Name of Lender Facility (in
Page 17 and 18: Sr. No. Bank Guarantees Name of Len
Page 21 and 22: MANAGEMENT’S DISCUSSION AND ANALY
Page 23 and 24: (2) Capacity refers to the normativ
Page 25 and 26: Availability and price of raw coal
Page 27 and 28: Impairment The carrying amounts of
Page 29 and 30: Finance cost Finance costs include
Page 31 and 32: Sale of Power \Sale of power income
Page 33: Spectrum Coal became our wholly-own
Page 37 and 38: Fiscal 2009 compared to Fiscal 2008
Page 39 and 40: Coal beneficiation and allied recei
Page 41 and 42: Provision for Tax The provision for
Page 43 and 44: For Fiscal 2008, our cash flow from
Page 45 and 46: Other contractual obligations The f
Page 47 and 48: Future Relationship Between Cost an
Page 49 and 50: conditions prescribed in clause 4.1
Page 51 and 52: duty. Further, the original land ow
Page 53 and 54: Section 73A of the Finance Act alon
Page 55 and 56: E/DL/28679/7AC-IV3622, dated Februa
Page 57 and 58: disputed his retirement claiming th
Page 59 and 60: Outstanding litigation and proceedi
Page 61 and 62: Civil Writ Petition No. 4982 of 201
Page 63 and 64: SCPL has filed an appeal no. 1880/M
Page 65 and 66: SFIL has filed 11 cases under secti
Page 67 and 68: Consequent to this merger, BCFL has
Page 69 and 70: 1. SHL v. Deputy Commissioner of In
Page 71 and 72: 3. Show cause notice dated April 20
Page 73 and 74: SMASL has filed a writ petition no.
Page 75 and 76: 8. Sindhu Realtors Private Limited
Page 77 and 78: Appeal, Bharatpur who disallowed th
Page 79 and 80: efore Commissioner of Central Excis
Page 81 and 82: GOVERNMENT AND OTHER APPROVALS In v
Page 83 and 84: Sr. No. Issuing Authority 10. Comme
Page 85 and 86:
Sr. No. Issuing Authority State Ele
Page 87 and 88:
Sr. No. Issuing Authority 1. Inspec
Page 89 and 90:
Sr. No. Issuing Authority Organisat
Page 91 and 92:
Sr. No. Issuing Authority 5. Office
Page 93 and 94:
Sr. No. Issuing Authority 3. Chhatt
Page 95 and 96:
Sr. No. Issuing Authority 8. Office
Page 97 and 98:
S. No . Issuing Authority License N
Page 99 and 100:
S. No . Issuing Authority License N
Page 101 and 102:
Sr. No. Issuing Authority assistanc
Page 103 and 104:
2. Ministry of Environment, GoI Ter
Page 105 and 106:
KEY PROVISIONS OF CERTAIN AGREEMENT
Page 107 and 108:
5. Coal Supply Agreement dated Sept
Page 109 and 110:
3. Agreement dated June 28, 2006 be
Page 111 and 112:
not remedied by SWSL within 90 days
Page 113 and 114:
Company can also terminate the IA,
Page 115 and 116:
5. Fuel Supply Agreement between Re
Page 117 and 118:
costs related to such rehabilitatio
Page 119 and 120:
2. Power purchase agreement dated J
Page 121 and 122:
• Mr. Rudra Sen Sindhu and Mr. Vi
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(b) Our Company has applied to the
Page 125 and 126:
AGREEMENT ENTERED INTO BETWEEN THE
Page 127 and 128:
observe, any such restrictions. Any
Page 129 and 130:
form and context in which they appe
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Except as stated in the sections ti
Page 133 and 134:
For further details please refer to
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• right to receive offers for rig
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ISSUE STRUCTURE This public issue o
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@ In case of ASBA Bidders, the SCSB
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ISSUE PROCEDURE This section applie
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electronic form, the ASBA Bidder sh
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documents to hold and invest in equ
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Bids by Non Residents including Eli
Page 149 and 150:
• Eligible Employees who bid for
Page 151 and 152:
The maximum and minimum Bid size ap
Page 153 and 154:
the Floor Price and at the Cap Pric
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1. The members of the Syndicate and
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finalization of the Basis of Allotm
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the Anchor Investors, the Anchor In
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2. Ensure that you use the ASBA Bid
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should be signed by the ASBA Accoun
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The Bidders should note that the es
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the Bids clearly indicate the schem
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• Bids at Cut-off Price by Non-In
Page 171 and 172:
Bidders can contact the Compliance
Page 173 and 174:
BASIS OF ALLOTMENT A. For Retail In
Page 175 and 176:
Method of Proportionate Basis of Al
Page 177 and 178:
Please note: 1. The illustration pr
Page 179 and 180:
• They shall not have recourse to
Page 181 and 182:
RESTRICTIONS ON FOREIGN OWNERSHIP O
Page 183 and 184:
MAIN PROVISIONS OF OUR ARTICLES OF
Page 185 and 186:
fulfillment or discharge of such de
Page 187 and 188:
notarially certified copy thereof h
Page 189 and 190:
(a) (b) (c) (d) (e) the power to ma
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Proposed Issuance is first offered
Page 193 and 194:
OTHER INFORMATION MATERIAL CONTRACT
Page 195:
through its investment manager, ICI
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Annexure XIV Continuedâ¦ - Edelweiss