MIRA INFORM REPORT
|
Report
Date : |
21st
June 2006 |
IDENTIFICATION
DETAILS
|
Name : |
BHUSHAN
STEEL AND STRIPS LIMITED |
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Registered
Office : |
F Block 1st
Floor, International Trade Tower, Nehru Place, New Delhi-110019, India |
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Country
: |
India |
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Financial
: |
31.03.2005 |
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Date
of Incorporation : |
07.01.1983 |
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Com.
Reg. No.: |
55-14942 |
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CIN
No: |
L74899DL1983PLC014942 |
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TAN
No.: (Tax
Deduction & Collection Account No.) |
DELB07323B |
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PAN
No.: (Permanent
Account No.) |
AAAB1247M |
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Legal
Form : |
Public Limited Liability company. The company’s shares are
listed on the Stock Exchanges. |
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Line
of Business : |
Engaged
in the business of manufacturing and marketing of cold rolled steel strips/sheets/coils and galvanised cold rolled steel strips/sheets /coils. |
RATING & COMMENTS
|
MIRA’s
Rating : |
Ba |
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered
normal. Capable to meet normal commitments. |
Satisfactory |
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Maximum
Credit Limit : |
USD
29000000 |
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Status
: |
Good |
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Payment
Behaviour : |
Regular |
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Litigation
: |
Clear |
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Comments
: |
Subject
is a well-established company having satisfactory track records. Directors are reported as experienced,
respectable and resourceful industrialists. Their trade relations are
reported as fair. General financial position is good. Payments are reported
as slow but correct. The company can be considered good for normal business
dealings at usual trade terms and conditions. |
LOCATIONS
|
Registered
Office : |
F Block,
1st Floor, Nehru Place, International Trade Tower, New Delhi – 110
019, India |
|
Tel.
No.: |
91-11-26462373
(5 Lines) |
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Fax
No.: |
91-11-26478750 |
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E-Mail
: |
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Website
: |
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Corporate
Office : |
F-Block, Ist Floor,
International trade Tower, Nehru Place, New Delhi, Pin-110019,India |
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Tel.
No.: |
Tel:-
91-11-26462373, |
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Fax
No.: |
91-11-26478750 |
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E-Mail
: |
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Factory
1 : |
v
23,
Site IV, Sahibabad Industrial Area, Sahibabad, District Ghaziabad – 201 010, Uttar Pradesh Tel No :-
91-120 - 2770601- 08 Fax No. :-
91-120-2770509, 2773602 E-mail:- bsslsbd@bhushansteel.com v
28/4,
Site IV, Sahibabad Industrial Area, Sahibabad, District Ghaziabad, Uttar Pradesh – 201 010 v
Village
Nifran, Savroli and Dehvali, Taluka – Khalapura, District Raigad (Near Khopoli), Maharashtra Tel: -
2192- 274263, 274294, 274296 , Fax-
274292, 274293 Email:- bsslkhapoli@bhushansteel.com |
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Branches
: |
Located
at :- Agartala, Agra, Ahmedabad, Aurangabad, Ahmednagar,
Bangalore, Bhuvaneshwar, Bhatinda, Chandigarh, Chennai, Guwahati (Assam),
Hyderabad, Haldwani, Indore, Jaipur, Jalandhar, Karnal, Kolkata, Kanpur,
Ludhiana, Mumbai, Nagpur, Nasik, Patna, Pune, Parwanoo, Rishikesh, Siliguri,
Vadodara, Kullu (Himachal Pradesh), Dera Bassi (Punjab), Faridabad, Kanpur,
and Varanashi |
DIRECTORS
|
Name : |
Mr. Brij
Bhushan Singal |
|
Designation
: |
Chairman |
|
|
|
|
Name : |
Mr.
Sanjay Singal |
|
Designation
: |
Vice Chairman & Managing Director |
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|
|
|
Name : |
Mr.
Neeraj Singal |
|
Designation
: |
Managing Director |
|
|
|
|
Name : |
Mr. Subir
Bisht |
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Designation
: |
Nominee
(ICICI) |
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|
|
|
Name : |
Mr. Mohan
Lal |
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Designation
: |
Director |
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|
|
|
Name : |
Mr. A.K.
Khushu |
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Designation
: |
Whole time Director |
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|
|
Name : |
Mr. Ravi
Kant Srivastava |
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Designation
: |
Additional
Director |
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|
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|
Name : |
Mr.
Nittin Johari |
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Designation
: |
Whole-time
Director |
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|
Name : |
Mr. Rahul Sen Gupta |
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Designation
: |
Whole-time
Director |
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|
Name : |
Mr.
M.V.Suryanarayana |
|
Designation
: |
Nominee (LIC) |
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|
|
|
Name : |
Mr. P.K.
Aggarwal |
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Designation
: |
Whole time Director |
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Other Personnel: - |
|
|
Name : |
Mr. O. P.
Davra |
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Designation
: |
Company Secretary |
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MAJOR SHAREHOLDERS
|
Names of Shareholders |
Percentage of Holding |
|
Promoters |
58.86% |
|
Banks,
Financial Institutions and Mutual Funds |
11.15% |
|
NRI’s |
0.28% |
|
Others |
29.71% |
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|
|
BUSINESS DETAILS
|
Line
of Business : |
Engaged
in the business of manufacturing and marketing of cold rolled steel strips/sheets/coils and galvanised cold rolled steel strips/sheets /coils. |
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|
|
|
Products
: |
Item Code No. (ITC
Code) 721041 Product Description
: Corrugated coated with Zinc
Cold Rolled Products of Iron or Non
Alloy Steel of a width of 600 MM or more Item Code No. (ITC
Code) 721049 Product Description
: Flat Coated with Zinc Cold
Products of Iron or Non Alloy Steel of a width of 600 MM or more Item Code No. (ITC
Code) 720918 Product Description : Flat Colled Rolled Products of Iron or Non Alloy
Steel of a width of 600 MM or more of a thickness of less than 0.5 MM |
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Exports
to : |
Myanmar, Dubai, Kenya, Ethiopia, Africa, Middle East and
Far East Asia |
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|
|
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Imports
from : |
Europe, U.S.A. and Far East |
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|
|
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Terms
: |
|
|
Purchasing : |
L/C, D/A or D/P terms |
GENERAL INFORMATION
|
Customers
: |
>
The
Tata Engineering & Locomotive Company Limited >
Bajaj
Tempo Limited >
LML
Limited >
Whirlpool
of India Limited >
Mahindra
& Mahindra Limited >
Hyundai
Motors India Limited >
Hindustan
Motors Limited >
JBM
Tools >
Escorts
Limited >
Scooter
India Limited >
LG
Electronics India Limited >
BPL
Limited >
Voltas
Limited >
Fedder
Lloyds >
Godrej
GE Appliances Limited >
Ashok
Leyland Limited >
Rail
Coach Factory |
|
|
|
|
No. of
Employees : |
1400 |
|
|
|
|
Bankers
: |
>
Punjab
National Bank >
Canara
Bank >
State
Bank of India >
Allahabad
Bank >
Federal
Bank Limited >
Bank
of India >
Bank
of Baroda >
ING
Bank NV Financial Institutions
>
ICICI
Bank >
IFCI
Bank >
IDBI
Bank >
LIC >
GIC
& Subsidiaries >
Exim
Bank >
SICOM >
AKA
Ausfaushrkredit – GmbH, Germany >
West
LB, Germany >
Unit
Trust of India >
UTI
Bank Limited |
|
|
|
|
|
|
|
Banking Relations : |
Good |
|
|
|
|
Auditors
: |
v
Mehra
Goel & Company Chartered Accountants |
|
|
|
|
Associates
: |
>
Bhushan
Industries Limited >
Bhushan
Metallics Limited >
Decor
Steel Limited >
Trail
Track India Limited >
Flawless
Holdings & Industries Limited >
Evergrowing
Iron & Finvest Limited >
Guinda
Mal Chiranji Lal Limited >
Kalinga
Pipes Limited |
|
|
|
|
Subsidiaries
: |
>
Bhushan
Capital & Credit Services Limited >
Jawahar
Credit & Holdings Limited |
|
|
|
|
Membership
: |
Confederation
of Indian Industry |
CAPITAL STRUCTURE
Authorised
Capital :
|
No. of
Shares |
Type |
Value |
Amount |
|
80000000 |
Equity Shares |
Rs. 10/- each |
Rs. 800.000 millions |
Issued,
Subscribed & Paid-up Capital :
|
No. of
Shares |
Type |
Value |
Amount |
|
40470000 |
Equity
Shares |
Rs. 10/- each |
Rs. 404.700 millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED
BALANCE SHEET
|
SOURCES
OF FUNDS |
31.03.2005 |
31.03.2004 |
31.03.2003 |
|
SHAREHOLDERS FUNDS |
|
|
|
|
1] Share Capital |
404.700 |
404.700 |
404.700 |
|
2] Reserves & Surplus |
6901.200 |
5482.100 |
4624.800 |
NETWORTH
|
7305.900 |
5886.800 |
5029.500 |
|
|
|
|
|
|
LOAN FUNDS |
|
|
|
|
1] Secured Loans |
10897.900 |
7881.100 |
6444.700 |
|
2] Unsecured Loans |
2276.800 |
1425.000 |
1333.500 |
|
TOTAL BORROWING |
13174.700 |
9306.100 |
7778.200 |
|
|
|
|
|
GRAND TOTAL
|
20480.600 |
15192.900 |
12807.700 |
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
10470.100 |
8741.400 |
5285.600 |
|
Capital work-in-progress |
3857.000 |
1906.400 |
4117.100 |
|
|
|
|
|
|
INVESTMENTS |
189.900 |
190.000 |
190.000 |
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
Inventories |
5816.700 |
3941.100 |
2573.800 |
|
Sundry Debtors |
3394.400 |
3506.600 |
2501.900 |
|
Cash & Bank Balances |
173.900 |
113.000 |
94.700 |
|
Loans & Advances |
1309.400 |
908.400 |
570.900 |
|
Total
Current Assets |
10694.400 |
8469.100 |
5741.300 |
|
Less : |
|
|
|
|
Current Liabilities |
4649.700 |
4061.700 |
2515.800 |
Provisions
|
81.100 |
52.300 |
49.800 |
|
|
4730.800 |
4114.00 |
2565.600 |
|
Net
Current Assets |
5963.600 |
4355.100 |
3175.700 |
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
39.300 |
|
|
|
|
|
GRAND TOTAL
|
20480.600 |
15192.900 |
12807.700 |
PROFIT & LOSS ACCOUNT
|
PARTICULARS |
31.03.2005 |
31.03.2004 |
31.03.2003 |
Sales Turnover [including other income]
|
30392.700 |
18243.400 |
12566.000 |
|
|
|
|
|
Profit/(Loss) Before Tax
|
1656.500 |
1039.600 |
635.800 |
Provision for Taxation
|
123.000 |
136.600 |
85.400 |
Profit/(Loss) After Tax
|
1533.500 |
903.000 |
550.400 |
|
|
|
|
|
Total Expenditure
|
2645.360 |
16640.400 |
11332.000 |
SUMMARISED RESULTS
|
PARTICULARS |
|
|
31.03.2006 |
|
Type |
|
|
Full Year |
|
Sales Turnover |
|
|
27927.400 |
|
Other Income |
|
|
124.100 |
|
Total Income |
|
|
28051.500 |
|
Total Expenditure |
|
|
23967.000 |
|
Operating Profit |
|
|
4084.500 |
|
Interest |
|
|
830.300 |
|
Gross Profit |
|
|
3254.200 |
|
Depreciation |
|
|
1657.600 |
|
Tax |
|
|
137.700 |
|
Reported PAT |
|
|
1544.500 |
|
Dividend (%) |
|
|
250.000 |
KEY
RATIOS
|
PARTICULARS |
31.03.2005 |
31.03.2004 |
31.03.2003 |
|
Debt-Equity Ratio |
1.70 |
1.57 |
1.43 |
|
Long Term Debt-Equity Ratio |
1.08 |
1.09 |
1.03 |
|
Current Ratio |
1.12 |
1.19 |
1.27 |
|
|
|
|
|
TURNOVER RATIOS
|
|
|
|
|
Fixed Assets |
1.89 |
1.56 |
1.39 |
|
Inventory |
5.80 |
5.32 |
5.90 |
|
Debtors |
8.20 |
5.77 |
4.54 |
|
Interest Cover Ratio |
3.09 |
2.57 |
1.96 |
|
Operating Profit Margin (%) |
14.48 |
15.75 |
16.26 |
|
Profit Before Interest & Tax Margin (%) |
8.66 |
9.82 |
10.58 |
|
Cash Profit Margin (%) |
11.24 |
11.14 |
10.15 |
|
Adjusted Net Profit Margin (%) |
5.42 |
5.21 |
4.48 |
|
Return on Capital Employed (%) |
13.74 |
12.17 |
11.20 |
|
Return on Net Worth (%) |
1.89 |
1.56 |
1.39 |
STOCK PRICES
|
Face Value |
Rs. 10/- |
|
High |
Rs. 213.95 /- |
|
Low |
Rs. 211.00 /- |
LOCAL AGENCY FURTHER INFORMATION
History
The company
was originally incorporated under the name & style of Jawahar Metal
Industries Private Limited. The company was converted into a Deemed Public
Limited company on 14th May, 1989 and the name was changed to
Jawahar Metal Industries Limited. The
name was further changed to present w.e.f. 9th June, 1992.
Bhushan
Group took over a casting unit in Ghaziabad in 1987 and renamed it Bhushan
Steel & Strips, after diversifying into wide-width cold-rolled (CR) steel
strips. Its’ 120,000 tpa CR plant started production with the first mill commissioned
in January 1990, followed by a second in March 1992.
The company
came out with its first public issue in 1994 to finance its forward integration
project for the manufacture of 100,000 tpa of continuous annealed/galvanised
steel strips. It came out with its second issue in April 1995 to part-finance
the setting up of facilities to manufacture an additional 150,000 tpa of CRCA
and 40,000 tpa of GP/GC sheets.
It entered
into an agreement with Preussang Handel, Germany, a leading metal trading house,
to buy a major part of BSS production. The OEM customers of the company include
TELCO, Bajaj Tempo, LML and Whilrpool of India. The company uses around 60-70%
of its production of CRCs for further processing into GP/GC (galvanised)
sheets, which are sold to OEMs like Shree Precoated, Carrier Aircon, etc.
The
company’s products had established a strong presence in Myanmar, Dubai, Kenya,
Ethiopia, in the regions of Africa, Middle East and Far East Asia. In 1995-96, the company achieved the
status of an Export House.
The company
commenced the second phase of cold rolling project in December, 1998. The
product of the unit had found acceptance for import substitution in large
number of industrial application including automobile. During the year it had
also set up a dedicated service center for large OEM customers at Sahibabad.
The company
had approved amalgamation of Bhushan Limited, with the company and had
implemented the expansion project of 2,50,000
tpa of Cold Rolling Cum Galvanising and Tube Complex in Khopoli,
Maharashtra at cost of Rs. 4860.000 millions. It was appraised by ICICI by way
of loans of Rs. 3250.000 millions and the balance by way of unsecured
loans/convertible Warrants/Internal accruals to the extent of Rs. 1610.000
millions. The company was expecting to complete the project within scheduled
time and cost.
The company
achieved the status of an Export House in the year 1995-96.
The company
commenced the second phase of cold rolling project in December 1998.
The company
is the only producer of 1,610 mm wide Cold Rolled Steel, from 6 Hi Hitachi Mill
from Japan. The company has also tied up with Sumitomo Metal Industries, Japan
for product development and quality control systems.
The company
has received technical support from Sumitomo Metal (Japan), Hitachi (Japan),
Ebner (Austria), Kvaerner Clecim (France), Waldrich Siegen (Germany), Heinrich
George (Germany), Fimi (Italy), MAN B & W (Germany).
The Bhushan
group took over a casting unit in Ghaziabad in 1987 and renamed it Bhushan Steels
& Strips (BSS), after diversifying into wide-width cold-rolled (CR) steel
strips. Its 1.2 lac tpa CR plant has started production, with the first mill
commissioned in Jan.'90, followed by a second in Mar.'92.
BSS came out with its first public issue in 1994 to finance its forward
integration project for the manufacture of 1,00,000 tpa of continuous
annealed/galvanised steel strips. It tapped the capital market for the second
time in Apr.'95, to part-finance the setting up of facilities to manfacture an
additional 1,50,000 tpa of CRCA and 40,000 tpa of GP/GC sheets.
The plants of the company are at Sahibabad, Uttra Pradesh and Khopali,
Maharashtra. It produced Cold Rolled Steel Strips/Sheets/Coils, Cold Rolled
Galvanised Steel Strips/Sheets/Coils, Colour Coated Galvanised Steel
Strips/Sheets/Coils, Precision tubes, Hardened & Tempered cold Rolled Steel
Strips, High Tensile Steel Strappings, Billets, Wire Rods and Formed
Sections.The company entered into an agreement with Preussang Handel, Germany,
a leading metal trading house, to buy a major part of BSS production.
The company's products have established a strong presence in Myanmar, Dubai,
Kenya, Ethiopia, in the regions of Africa, middle east and far-east Asia. In
1995-96, the company achieved the status of an Export House.During 2004-05, the
company has successfully expanded its overseas market to Spain, Portugal,
Phillipines, south Korea, Australia, New Zealand, Mexico and chili etc.
The company commenced the second phase of cold rolling project in Dec.'98. The
product of the unit has found acceptance for import substitution in large
number of industrial application including automobile. During the year it has
also set up a dedicated service centre for large OEM customers at Sahibabad.
The company has approved amalgamation of Bhushan Ltd. with the company in the
year 2000.During 2003-04, the company withdrawned the proposed amalgamation of
Bhushan Ltd. with the company.
During 2000-01, the company implemented the expansion project of 2,50,000 tpa
of Cold Rolling Cum Galvanising & Tube Complex in Khopoli,Maharashtra at
cost of Rs. 4860 Million. During 2004-05, the status of the project is that
this has been fully commissioned and the company has also commisssioned the
Cold Rolled (Narrow) and Pipe plant at Sahibabad.
During 2004-05, The company is planning to commence additional manufacturing
facilities at its plant situated at Khopoli(Maharashtra) in respect of the
production of prepainted galvanized material(PPGI).The capacity of the line
would be approximately 120000 MT per annum making it the largest line in India.
During 2004-05, the company is in the process of implementing an integrated
steel project in the State of Orissa and the part of the project includes
capacities for production of Sponge Iron and Billets is envisaged to start from
April, 2006.
During the year 2004-05, the company expanded its installed capacity of Cold
Rolled Steel Strips/Sheets/Coils, Cold Rolled Galvanised Steel
Strips/Sheets/Coils and Precision Tubes by 200000MT, 120000MT and 10000MT
respectively. With this expansion, the total installed capacity of Cold Rolled
Steel Strips/Sheets/Coils, Cold Rolled Galvanised Steel Strips/Sheets/coils and
Precssion Tubes increased to 900000MT, 465000MT and 60000MT respectively. And
the company inducted a product Colour Coated Galvanised Steel
Strips/Sheets/Coils with the installed capacity of 80000MT.
The company
is in trade terms with :-
v
Acon
Measurement (Private) Limtied
v
Adcon
Instrumetn (Private) Limited
v
Air
Trax Polymers (Private) Limited
v
Alliance
Engineering Company
v
Bamrah
Engineers
v
D B
Engineeirng Company
v
Electroplast
v
Friends
Cable Industries
v
Friend
Fibre Glass Engineering
v
Hindustan
Friction
v
Hindustan
Rubber Industries
v
Indus
Castings Private Limited
v
Madras
Cupprum Metals Private Limited
v
Mechemco
Industries
v
Paraksh
Rubber House
v
Polymet
Engineering Plastics
v
Pragati
Engineering Works
v
Premi
Bright Electroplaters
v
Rawal
Rubber Mill
v
Reyhal
Industries
v
Roto
Seals Industries
v
Rotodel
Pumps & Gears Private Limited
v
S. K.
Beri Sales (Private) Limited
v
SagguEngineers
v
Saggu
Gears India
v
Satguru
International
v
Supreme
Rolls and Shears (Private) Limited
v
Swarajya
Industries
v
Telelec
Corporation India
v
Unitech
Material Handlings
v
Uttra
Khand Rubber Works
v
Vuican
Industrial Engineering
v
Warner
Industries
v
Guru
Nanak Mineral Industries
v
Indian
Metal and Alloys Industries
v
Industrial
Engineers
v
Jamshedji
Construction Machinery
v
Khalsa
Engineers
v
Lokpal
Industries
v
Perfect
Engineering Works
v
Rahul
Cable Private Limited
v
Rajesh
Wire Netting Works
v
Real Marble
(Private) Limited
v
Sai
Baba Stone Crusing
v
Shah
Engineering
v
Shiv
Shakti Industries
v
Swastik
Rubber Industries
v
Tushaco
Pumps Limited
v
Vinod
Ceramic
v
Anand
Mechanical
v
Apollo
Engineering Works
v
Aurtech
Construction Equipments Limited
v
Aurtech
Hydracons
v
Baba
Clutch Facing Workshop
v
Comet
Engineering Works
v
Corotech
Bitumastic
v
MNK
Wire Products (MANCO & Company)
The company imports raw materials, capital goods and spares
parts & stores
The company’s fixed assets of important value include
Freehold Land, Leasehold Land, Building, Plant & Machinery, Furniture &
Fixtures and Vehicles
During the year under reviews your Company has
fully commissioned its ambitious expansion project (i.e. Cold Rolled Wider
Mill, Precision Tube Mill, Galvanising Line, High Tensile Steel Strapping, Hard
& Tempered steel and Colour Coating Line) at Khopoli in the State of
Maharashtra. The company has also commissioned the Cold Rolled (Narrow) and
pipe plant at Sahibabad. With the new manufacturing facilities, the company has
achieved the quantum jump during the year 2004-05.
During the period under report, the total income of the Company increased
to Rs. 26889.40 millions, registering a growth rate of 70% over previous year's
level of Rs.15782.80 millions. The Company achieved the Exports sales of Rs.
10510.50 millions, showing a remarkable growth of 170% over the previous year
level of Rs. 3888.80 millions.
EXPANSION PROJECT
The Company, in order to become self reliant and to have control on the
raw material in terms of pricing and availability of right quality, is in the
process of implementing an integrated steel project in the state of Orissa,
which would produce HR Coil and billets. The project also encompasses
installation of captive coal based thermal power plant to generate power.
The project is being set up in modular format where part facilities would
be set up during implementation and start generating cash flows. The part of
the project includes capacities for production of sponge iron and billets is
envisaged to start generating cash from April, 2006, onwards (for the full year
- F.Y 2007).
This project would make the Company a vertically integrated player and
increase its profitability substantially as it would no longer be subject to
the vagaries of HR availability and price hikes.
The Company, has already acquired the land in Meramandali, District
Dhenkanal, Orissa. The company has placed substantial orders for the equipments
mainly with SMS Demag, Danieli Corus, BHEL, Paul Wurth, ABB, Pillard, KHD Humbolt,
TISCO growth shop, Thermax FC Fertigungs, etc. The Civil work has already
started at the site and is at full swing.
FINANCE
The Working Capital Limits for the Sahibabad and Khopoli Plants were
appraised by PNB, Lead Banker for Rs.13763.00 millions (Fund Based Rs. 5700.00
millions including Export Credit and Non Fund Based Rs. 8063.00 millions) and
it has been fully tied up. During the year one new bank viz., Oriental Bank of
Commerce has joined the Consortium of Working Capital Bankers.
The Term Loan for the Orissa project has been appraised and syndicated by
State Bank of India. The Financial closure of the debt has been done with the
contribution of various Banks with State Bank of India being the lead Bank in
the Consortium.
The company continues to enjoy the long term rating of Ind A+ (Ind Single
A plus) by Fitch Rating India Pvt. Ltd.
The Fitch Rating India Pvt. Ltd. (FITCH) has re-assigned short term
rating of F1 + for Rs.1000 millions Commercial Paper program of the
Company.
During the year, Credit Analysis & Research Ltd.(CARE) has assigned
short term non convertible debentures rating PR1+ (PR one plus) for Rs. 100.00
millions.
EXPORTS
Efforts of the company on the Export front, to respond to the National
priority, continue to be increasingly rewarding with the achievement of export
turn-over of Rs. 10510.50 millions, up by 170% over the previous year's exports
of Rs. 3888.80 millions.
With a firm commitment and through sustained efforts, the Company
continues to maintain good rapport with Global Customers. Its quality products
and timely delivery have found wide acceptance in the highly competitive
international market.
During the year, the company's new value added product viz. Colour Coated
sheets have been very well recognized in the European Countries. Almost all of
the production of the Colour Coated sheets are being exported. Beside Colour
Coated Sheets, the Company exported new segments of steel like High Tensile
Steel strapping, Hardened and Tempered Steel.
The company has successfully penetrated into newer overseas market is and
its products are being exported to almost all of the Countries across the
Globe, which is ample proof of its products passing the sternest quality and
delivery tests applied world wide. During the year the Company has successfully
penetrated into newer overseas markets like Spain, Portugal, Philippines, South
Korea, Australia, New Zealand, Mexico, Chile etc.
The present trend of Demand in the International Market reflects good
export prospects for the current year. In the current year, the Company is
exploring new markets with a new product mix, with which the performance of the
Company on export front is envisaged to be even better during the financial
year 2005-06.
EARNINGS OUTLOOK
After successful implementation of various CR & GP/GC projects and
establishing a comfortable presence in automobile and white goods products
market, BSSL has now planned to move up in the process / value chain of steel
products. It is in this context that BSSL has proposed backward integration by
setting up a unit for manufacture of HR Coils and billets starting from basic
raw materials viz. iron ore and coal. This will not only help the Company in
mopping up higher margins in the value chain but also secure it against the
vagaries of the demand supply position of HR coils, which results in volatility
in their prices. Hereafter, on the raw material side, BSSL will be left to cope
only against the demand / supply gap and movement in the prices of iron ore and
coke
FINANCIAL PERFORMANCE WITH RESPECT TO
OPERATIONAL PERFORMANCE
Financial Performance of a Company depends upon the Operational
Performance namely operating performance margins. The Company employs World -
Class Technologies and manufacturing practices with a modern management style
to produce its products at a minimum cost. The good financial results are a
direct outcome of the excellence in operational performance. A committed and
dedicated work force is conscious of its responsibility towards contributing to
the Financial front. Gross Profit being 15.24% of the gross sales, which is
quite good for Steel Company.
Net sales for the year 2004-05 were at Rs. 26889.40 millions. The Company
achieved Export Turnover of Rs.10510.50 millions. Gross Profit (earning before
interest, depreciation and tax) was Rs. 4097.70 millions. The operational
profit was Rs. 3303.80 millions.
AS
PER WEBSITE
Bhushan
Steel & Strips Limited, an ISO 9002,QS 9000 certified and the flagship company of Rs.
15000 millions ($300 million approx.)which is likely to go up to Rs. 25000
millions. BHUSHAN STEEL, is leading the Technological Revolution in Indian Cold
Rolled Steel Industry today & defining new frontiers of customer
satisfaction. It is India's largest (in the secondary sector) and the only CR
Steel Plant with a line to manufacture Cold Rolled Coils & Sheets up to a
width of 1700mm, as well as Galvanised Steel Coils & Sheets up to width of
1350mm.
The Company currently has a capacity to produce 0.6 Million MT/Annum of Cold
Rolled Steel at Sahibabad Works and 0.4 Million MT/Annum of Cold Rolled Steel
at Khopoli Works & out of that 0.25 Million MT/Annum of Galvanized Steel.
"EVERYTHING
ASSOCIATED WITH THE TRADEMARK OF BHUSHAN STEEL REFLECTS THE COMPANY'S POSITION
OF LEADERSHIP & QUALITY. AT BHUSHAN STEEL, IT IS OUR ENDEAVOUR TO ATTAIN
THE HIGHEST LEVEL OF CUSTOMER SATISFACTION. "
Benefit To The Customers
Excellent
Surface Finish
Auto shape control on both side of the mill.
Mill clean system with a synthetic coolant to avoid any coolant mark on the
strip.
Electrolytic cleaning line to remove 'IRON FINES' from strips, which helps in
improving the life of salt - spray test after painting and avoids carbon soots
completely. It also increases the tool's life in Press shop.
Latest and sophisticated EDT machine from Waldrich Siegen, Germany, to provide
controlled texture for better paint adhesion and to achieve surface roughness
in close tolerances.
On line Tension-Leveling equipment for better flatness and controlled
elongation.
Computerized Inventory Control Management and independent skin - pass mill to
avoid any unwanted storage in between annealing and skin-pass process.
KATHABAR STORAGE SYSTEM is commissioned to avoid oxidation through dehumidifier
to prevent rusting during storage.
Electro-static rust preventive oil spray system for controlled oil coating on
CRCA surface. Oil coating can be maintained in between 0.50Gms/m to 4.00 Gms/m.
Excellent Mechanical Properties
Practically, no variation in mechanical properties due to HICON 100% Hydrogen
annealing furnace from EBNER, Austria.
The raw material selection is done by computerized program for different
application.
Close Tolerances on Thickness, Width and Length
X-Ray thickness gauge to measure thickness in fraction of a micron from DMC,
U.S.A.
X-Ray thickness scanner across the width from DMC, U.S.A.
Automatic computerized thickness control from DMC, U.S.A. and Hitachi, Japan.
Shim less tooling on slitting lines with computerized setting ensures correct
width in close tolerances, from Germany.
Precision Cut-to-length lines to ensure length tolerances better than
+/-0.75mm.
Automatic Electromagnetic Stacker on shearing lines to produce scratch free and
finger print free steel.
Other Advantages
Better width combination facility to customers.
Higher yield in standard width material i.e. up to 92.45%.
Thickness, length and width tolerances as per customer requirements. The
equipment is capable enough to maintain all these tolerances in the lower side
of International Standards like JIS, BIS, ASTM and EN.
The largest service centre in the Country available with Bhushan steel enables
it to accept the orders in different sizes and service the same in shortest
possible time.
Well located on the map of the Country form smooth supply of Finished Goods.
Technology
Cold Rolled Steel
Cold Rolling Mill Complex is a towering citadel the first of its kind in the
Steel sector of the country having equipments supplied by Global leaders.
The state-of-the-art 6 Hi 1700 mm Universal Crown Cold Rolling Mill from
Hitachi, Japan ranks as the widest CR mill in India along with additional
features of both side auto shape control with automatic spot cooling system for
better shape & flatness with themost advanced Level-II adaptive control
computerization. It is the first mill of its kind in the whole of Asia.
The mill is capable of maintaining extremely close thickness tolerances and can
produce ultra-thin CR Steel for inner shield of Picture Tube and Battery
application i.e. up to a thickness of 0.10mm in close tolerances.
The company has also installed Electrolytic Cleaning Line (ECL) with
technologyfrom Nippon Denro, Japan to remove surface contaminants.
The 100% Hydrogen based (Hicon) high convection annealing furnaces from world
leader Ebner, Austria areyet another exclusive feature of our identity.
The Skin Pass mill from Clecim, France with tension leveler and Electrostatic
Oiling for uniform spray of rust preventive oil, provides world standard
quality of material suitable to manufacture Automotive Skin panels.
The Roll Grinding machine and the Electrical Discharge Texturizing machine
(EDT) for the rolls from the world leaders Waldrich Siegen, Germany ensures
uniform Mirror finish material for Automobile Head lamp reflectors and other
Electroplated items & Matte surface finish, which in turn improves the
paintability, suitable for automobile skin panels, respectively.
The CR Slitters from Fimi, Italy and Daehyun, Korea with most advanced features
like 3 M tension roll and computerized shim-less tooling ensure absolute
scratch-free material with a very close tolerance and width as low as 10mm.
These machines are the first of their kind in the country.
The Cut-to-length lines from Heinrich Georg, Germany; Fimi, Italy and Daehyun,
Korea are milestones of precision engineering. These machines provide a very
close tolerance on length as low as +2/-0mm (even less can be achieved).The
on-line washing, oiling, electromagnetic sheet stacker and on-line packing
system attached to these lines ensure International Quality Standards. These
are the first lines of their kind in the country where handling of sheets are
completely automated during shearing and packing.
To ensure the right quality input of HR Coils to the mill, the company has the
most modern Push-Pull Pickling line with technology back up from Proeco,
Canada.
In addition to the above the company also has one latest 6 Hi 1020mm & one
20 Hi 1250mm wide Sendziemer mill with automatic gauge control and 8 CR
Slitters and 14 Cut-to-length lines.The company enjoys uninterrupted power
supply from the UPSEB on 220KV, which is the first of its kind in the State of
Uttar Pradesh. Further to have captive and better quality of power for the smooth
operation of the complex, company has installed 24MW Captive Power Plant
imported from MAN B&W, Germany. This ensures consistent supplies of
material to our customers even in times of acute power shortage.
Galvanized Steel
The Galvanized sheets & coils manufactured by the company have excellent
Zinc adhesion and corrosion resistance achieved by applying a special coating
of Zinc & Zinc alloys. This is further enhanced by giving a special
chemical treatment on the zinc-coated surface to prevent the formation of white
rust
The Company has three Galvanizing lines consisting of most modern continuous
annealing furnaces based on the design of Stein Heurty, France.
One of the Galvanizing line has on line 4 Hi skin passing cum tension leveling
facility to produce Galvanized skin passed Material with zero spangles for
White Goods, Domestic appliances & Automotive applications.
The on line coating thickness control equipment from Valmet, Canada and
Radiometrie, Germany attached to the galvanizing lines ensure uniform zinc
coating mass.
The Galvanized skin passed sheets & coild have an excellent surface finish
suitable for manufacturing products of aesthetic importance. This product is
widely accepted and extensively used for the manufacture of Air Conditioners,
Washing Machines, Refrigerators, Dish Washers, Visi Coolers, Microwave Ovens,
Computers, Bus body, Automobile Components, Colour coated sheets &
coils.The company is the largest supplier to these industries-in fact single
source supplier to many of the customers. Recently, the company has also
introduced Galvanneal material, which is most suitable for Appliances and
Automobiles industry.
The Galvanized sheets, coils and corrugated sheets manufactured by the company
are globally accepted especially in important international markets of Europe,
USA, Canada, South Africa, Kenya, Ethiopia, UAE, Qatar, Oman, Nepal, Myanmar,
Taiwan, Vietnam, China, Uganda, Singapore, Tanzania, Bangladesh.
Strategic Alliance
In order to acquire the latest
know-how to establish the quality requirements of all customers in Automobile,
White Goods Appliances & General Engineering industry, the company has
entered in to a technical collaboration with the world's one of the largest
steel producer Sumitomo Metal Industries, Japan.
Other
Products from Group Companies
|
Group |
Products |
Section / |
Grades |
Standard Used |
Applications |
|
Bhushan
Industries Limited, Chandigarh |
Narrow
Width CR |
Width:
12-535 mm Thickness: 0.30-4.00 mm |
EDD,DD,D
High Carbon Steel |
IS / JIS |
Automobile,
white goods and General Engg. Industry |
|
Bhushan
Metallics Limited, Derabassi (Punjabi) |
Cable
Tape |
Width:
20-70 mm Thickness:0.50-0.80 mm 'Zn' coating: 210 gm/m* & above on each
Side |
D |
IS |
XLPE
Cables |
|
M.S ERW
Pipes |
Outside
Diameter: 1/2"-4" (15 mm to 100 mm N.B.) |
Black
& GI |
IS/BS/
ASTM |
Water,
air and gas Application |
|
|
Bhushan
Metallics Limited, Chandigarh |
Precision
Tubes |
Outside
Diameter: 8.80 - 50.80 mm Thickness : 0.35 - 3.25 mm Length : 3.0 - 9.0 mtr
in long length. 150 - 2500 mm in cut length. |
Bright
& Oiled |
IS/BS/
JIS/DIN/ ASTM |
Automobile,
Bycycle, Process , Electrical & General Engg. Industry. |
|
Bhushan
Industries Limited, Calcutta. |
CR/GP/ GC |
Width:1250
mm (max.) Thickness : 0.12 - 1.60 mm |
EDD, DD,
D |
IS/ JIS |
Roofing,
Construction &General Engg. Application. |
CMT REPORT
[Corruption, Money laundering & Terrorism]
The Public Notice information has been collected from
various sources including but not limited to: The Courts, India Prisons
Service, Interpol, etc.
1] INFORMATION ON DESIGNATED PARTY
No
records 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. 46.04 |
|
UK Pound |
1 |
Rs. 84.73 |
|
Euro |
1 |
Rs. 57.92 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP
CAPITAL |
1~10 |
5 |
|
OPERATING
SCALE |
1~10 |
5 |
|
FINANCIAL
CONDITION |
|
|
|
--BUSINESS
SCALE |
1~10 |
5 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
5 |
|
--CREDIT
LINES |
1~10 |
5 |
|
--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 |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER
MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
47 |
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 |
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 |
Unfavourable & favourable
factors carry similar weight in credit consideration. Capability to overcome
financial difficulties seems comparatively below average/normal. |
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 |