MIRA INFORM REPORT
|
Report
Date : |
17.04.2007 |
IDENTIFICATION
DETAILS
|
Name : |
BHUSHAN
STEEL AND STRIPS LIMITED |
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|
|
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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
: |
31.03.2006 |
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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
35000000 |
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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 |
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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 Ř Meramandali, District Dhenkanal,
Orissa |
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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 |
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|
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|
Name : |
Mr.
Sanjay Singal |
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Designation
: |
Vice Chairman & Managing Director |
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Name : |
Mr.
Neeraj Singal |
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Designation
: |
Managing Director |
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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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|
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 |
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Designation
: |
Nominee (LIC) |
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|
Name : |
Mr. P.K.
Aggarwal |
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Designation
: |
Whole time Director |
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|
Name : |
Shri Sandeep Bakhshi
|
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Designation
: |
Nominee
Director of ICICI bank |
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|
Name : |
Shri V.K. Mehrotra |
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Designation
: |
Director |
KEY EXECUTIVES
|
Name : |
Mr. O. P.
Davra |
|
Designation : |
Company Secretary |
MAJOR SHAREHOLDERS
|
Names of Shareholders |
Percentage of Holding |
|
Promoters |
66.05 % |
|
Banks,
Financial Institutions and Mutual Funds |
2.97 % |
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NRI’s |
0.28 % |
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Others |
30.70 % |
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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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Imports
from : |
Europe, U.S.A. and Far East |
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Terms
: |
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Purchasing : |
L/C, D/A or D/P terms |
PRODUCTION STATUS
|
Particulars |
|
Unit |
Installed Capacity |
Actual Production |
|
Cold Rolled Steel
Strips/Sheets/Coils |
|
MT |
9,00,000 |
7,73,426 |
|
Cold Rolled Galvanised Steel
Strips/Sheets/Coils |
|
MT |
4,65,000 |
3,95,350 |
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Colour
Coated Galvanised Steel Strips/Sheets/Coils |
|
MT |
80,000 |
65,567 |
|
Precision Tubes |
|
MT |
60,000 |
57,544 |
|
Hardened
& Tempered Cold Rolled Steel Strips |
|
MT |
6,000 |
5,261 |
|
High Tensile Steel Strapings |
|
MT |
20,000 |
6,676 |
|
Billets |
|
MT |
40,000 |
23,346 |
|
Wire Rods |
|
MT |
20,000 |
12,954 |
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Formed Sections |
|
MT |
3,000 |
1,063 |
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|
MT |
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Under the liberalised industrial policy
of Government of India, the company products do not require any industrial
license. |
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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 |
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No. of
Employees : |
1400 |
||||||
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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 |
||||||
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Facilities
: |
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13% Redeemable Non-convertible
Debentures were redeemable at par in twelve equal quarterly instalments
commencing at the end of 3rd year from the date of allotment i.e 30.03.2001. Rs.100.00 (Previous
year Rs.41.67) per Debenture have been redeemed and these debentures have
been fully prepaid during the year. 1 2.50% Redeemable Non-convertible
Debentures are redeemable at par in twelve equal quarterly instalments
commencing at the end of 3rd year from the date of allotment i.e 14.06.2001. Rs.66.66 (Previous
year Rs. 33.33) per Debenture have been redeemed. 1 1.80% Redeemable Non-Convertible
Debentures to the extent of 30,00,000 debentures were Redeemable at par in three
equal yearly instalments commencing at the end of 3rd year from the date of allotment
i.e. 1 9.09.2002 (20,00,000 debentures) and 16.07.2002 (10,00,000 debentures)
and 1 1.80 % Redeemable Non-convertible Debentures to the extent of 20,00,000 debentures
were redeemable at par in twelve equal quarterly instalments commencing from
27th month from the date of allotment i.e. 1 6.07.2002. Rs. 1 00.00 (Previous year Rs. 8.33,out of
20,00,000 debenture) per Debenture have been redeemed and these debentures have
been fully prepaid during the year. 10% Redeemable Non-convertible
Debentures are redeemable at par in three equal annual instalments commencing
at the end of 3rd year from the date of allotment i.e 08:07.2003 (250 debentures),
07.08.2003 (50 debentures), 14.08.2003 (50 debentures) and 21.08.2003 (150
debentures). Rs 10 lacs (previous year Nil) per Debenture have been redeemed and these debentures
have been fully prepaid during the year. 6.75% Redeemable Non-convertible
Debentures are redeemable at par in twelve equal quarterly instalments
commencing at the end of 9th quarter from the date of allotment i.e 04.08.2003 however Rs 16.67 lacs
(previous year Nil ) per Debenture have been redeemed during the year. 6% Redeemable Non-convertible
Debentures are redeemable at par in sixteen equal quarterly instalments
commencing from 15.08.2004 and ending on 15.05.2008. Rs.43.75 lacs (Previous year Rs.18.75 lacs)
per debenture have been redeemed. 13%, 12.50% and 1 1.80% Non
Convertible Debentures are secured by mortgage of aH of the company's
immovable properties including plant & machinery, spares, tools and accessories both present &
future ranking pari passw inter-se with the banks and financial institutions
for term loans and charge on all other movable assets of the company, subject to prior charges created /
to be created in favour of the company's bankers for securing its working
capital requirements. 1 0% Non-convertible Debentures
are secured by first charge ranking pari passu inter-se with the banks and
financial institutions for term loans on the fixed assets of the company and personal guarantee of Managing
Director of the company. 6.75% and 6% Non-convertible
Debentures are secured by first charge ranking pari passu inter-se with the
banks and financial institutions for term loans on the Company's immovable properties situated at
Mehasana in the state of Gujrat and guaranteed by ICICI Bank. Secured by hypothecation of
stocks, book debts, second charge on company's land, building and other
immovable and movable properties ranking pari passu inter-se, personal guarantees of two promoter
directors, and Rs.l 8773.00lacs (Previous Year Rs.23325 lacs) further
guaranteed by Marsh Capital Services Pvt. Ltd. Secured by mortgage of land &
building and charge on all of the company's immovable and movable properties
(except book debts) both present and future including movable machinery, spare, tool &
accessories, ranking pari passu inter-se with the trustee of debenture
holders subject to prior charges created in favour of banks on stocks etc.
for securing borrowing for working capital
requirements. Above includes Rs 6881 5.58 lacs (Previous Year Rs.3000 lacs) ,
on which security by way of mortage of land & building and charges on ail of the company's immovable
properties is yet to be created . Out of these loans Rs.l 28653.20
lacs (Previous Year Rs.38202.36 lacs) is guaranteed by personal guarantee of
two promoter directors. Secured by hypothecation of
specific assets under deferred payment terms. |
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Banking Relations : |
Good |
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Auditors
: |
v
Mehra
Goel & Company Chartered Accountants |
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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 |
||||||
|
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|
||||||
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Subsidiaries
: |
>
Bhushan
Capital & Credit Services Limited >
Jawahar
Credit & Holdings Limited |
||||||
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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
|
No. of
Shares |
Type |
Value |
Amount |
|
42089600 |
Equity
Shares |
Rs. 10/- each |
Rs. 420.896 millions |
Paid-up Capital :
|
No. of
Shares |
Type |
Value |
Amount |
|
41271662 |
Equity
Shares |
Rs. 10/- each |
Rs. 412.717 millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED
BALANCE SHEET
|
SOURCES
OF FUNDS |
31.03.2006 |
31.03.2005 |
31.03.2005 |
|
SHAREHOLDERS FUNDS |
|
|
|
|
1] Share Capital |
412.717 |
404.717 |
404.700 |
|
2] Reserves & Surplus |
8483.955 |
6901.188 |
6901.200 |
NETWORTH
|
8896.672 |
7305.905 |
7305.900 |
|
|
|
|
|
|
Advance for share warrant Money received |
36.000 |
0.000 |
|
|
LOAN FUNDS |
|
|
|
|
1] Secured Loans |
16509.122 |
10897.908 |
10897.900 |
|
2] Unsecured Loans |
3852.659 |
2276.807 |
2276.800 |
|
TOTAL BORROWING |
20361.781 |
13174.715 |
13174.700 |
|
|
|
|
|
|
DEFERRED
TAX LIABILITIES |
663.124 |
748.752 |
|
GRAND TOTAL
|
29957.577 |
21229.372 |
20480.600 |
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
10200.759 |
10470.061 |
10470.100 |
|
Capital work-in-progress |
12952.249 |
3857.020 |
3857.000 |
|
|
|
|
|
|
INVESTMENTS |
191.657 |
189.901 |
189.900 |
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
Inventories |
4747.846 |
5816.725 |
5816.700 |
|
Sundry Debtors |
4044.772 |
3394.353 |
3394.400 |
|
Cash & Bank Balances |
815.164 |
173.894 |
173.900 |
|
Loans & Advances |
2411.420 |
1297.633 |
1309.400 |
|
Total
Current Assets |
12019.202 |
10682.605 |
10694.400 |
|
Less : |
|
|
|
|
Current Liabilities |
5265.874 |
3889.116 |
4649.700 |
Provisions
|
140.416 |
81.099 |
81.100 |
|
|
5406.290 |
3970.215 |
4730.800 |
|
Net
Current Assets |
6612.912 |
6712.390 |
5963.600 |
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
GRAND TOTAL
|
29957.577 |
21229.372 |
20480.600 |
PROFIT & LOSS ACCOUNT
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
Sales Turnover [including other income]
|
28051.478 |
30392.700 |
18243.400 |
|
|
|
|
|
Profit/(Loss) Before Tax
|
3254.160 |
1656.500 |
1039.600 |
Provision for Taxation
|
1657.577 |
123.000 |
136.600 |
Profit/(Loss) After Tax
|
1596.583 |
1533.500 |
903.000 |
|
|
|
|
|
Export Value
|
10056.638 |
0.000 |
0.000 |
|
|
|
|
|
Import
|
|
|
|
|
Raw Materials |
11948.236 |
-- |
-- |
|
Stores & Spares |
73.988 |
|
|
|
Capital Goods |
1001.036 |
|
|
|
Others |
0.000 |
|
|
|
Total Imports |
13023.260 |
0.000 |
0.000 |
|
|
|
|
|
|
Expenditures : |
|
|
|
|
Cost of Goods Sold |
0.000 |
|
|
|
Manufacturing Expenses |
23967.011 |
|
|
|
Administrative Expenses |
0.000 |
|
|
|
Raw Material Consumed |
0.000 |
|
|
|
Purchases made for re-sale |
0.000 |
|
|
|
Consumption of stores and spares parts |
0.000 |
|
|
|
Increase/(Decrease) in Finished Goods |
0.000 |
|
|
|
Salaries, Wages, Bonus, etc. |
0.000 |
2645.360 |
16640.400 |
|
Managerial Remuneration |
0.000 |
|
|
|
Payment to Auditors |
0.000 |
|
|
|
Interest & financial Charges |
830.307 |
|
|
|
Insurance Expenses |
0.000 |
|
|
|
Power & Fuel |
0.000 |
|
|
|
Depreciation & Amortization |
1657.577 |
|
|
|
Other Expenditure |
0.000 |
|
|
|
Total Expenditure |
26454.895 |
2645.360 |
16640.400 |
SUMMARISED RESULTS
|
PARTICULARS |
31.03.2006 |
31.09.2006 |
31.12.2006 |
|
Type |
1st Qtr |
2nd Qtr |
3rd qtr |
|
Sales Turnover |
7875.500 |
9947.100 |
10008.100 |
|
Other Income |
54.400 |
48.700 |
50.900 |
|
Total Income |
7929.900 |
9995.800 |
10059.000 |
|
Total Expenditure |
6449.900 |
8443.600 |
8469.300 |
|
Operating Profit |
1480.000 |
1552.200 |
1589.700 |
|
Interest |
229.200 |
194.000 |
205.500 |
|
Gross Profit |
1250.800 |
1358.200 |
1384.200 |
|
Depreciation |
503.200 |
505.600 |
507.600 |
|
Tax |
84.600 |
98.200 |
100.900 |
|
Reported PAT |
622.500 |
695.900 |
717.200 |
|
Dividend (%) |
|
|
|
200606 Quarter 1 --------------- Notes EPS is
Basic 1. the above results have been taken on record by the Board of Directors
at New Delhi on July 19,2006. 2. The limited review for the quarter ended on
30.06.2006,as under clause 41 of the listing agreement with the Stock Exchange
has been carried out bny the Statutory Auditor. 3. The company is engaged in
the steel business ,which in the context of Accounting Standard 17 issued by
the institute of Chartered Accountant of India is considered the only business
segment. 4. There were no complaints pending at the quarter.03 complaints
received during the quarter were suitably disposed off. 5. Previous period/year
figures have been regrouped/rearranged wherever necessary.
200609 Quarter 2 --------------- Notes EPS is
Basic Status of Investors complaints for the quarter ended September 30, 2006
Complaints pending at the beginning of the quarter Nil Complaints received
during the quarter 1 Complaints disposed off durring the quarter 1 Complaints
unresolved during the quarter Nil 1. The above results have been taken on
record by the Board of Director at New Delhi on October 18,2006. 2. The limited
review for the half year as required under clause 41 of the listing agreement
with the Stock Exchanges has been carried out by the Statutory Auditors. 3. The
company is anaged in steel business, which in the context of Accounting
Standard 17 issued by the Institute of Chartered Accountants of India is
considered the only business segment. 4. Previous period/year figure have been
regrouped/rearranged wherever considered necessary.
200612 Quarter 3 --------------- Notes Gross
Sales Includes Domestic Sales Rs 6943.80 million Exports Sales Rs 4007.70 million
Expenditure Includes (Increase)/Decrease in Stock in Trade Rs 66.40 million
Consumption of Raw Materials Rs 7614.10 million Staff Cost Rs 78.30 million
Other Expenditure Rs 710.50 million Tax Includes Provision for Current Tax Rs
100.90 million Deferred Tax Rs 58.50 million EPS is Basic Status of Investor
Complaints for the quarter ended December 31, 2006 Complaints Pending at the
beginning of the quarter Nil Complaints Received during the quarter 04
Complaints disposed off during the quarter 03 Complaints unresolved at the end
of the quarter 01 1. The above results have been taken on record by the Board
of Directors on January 22, 2007. 2. The Limited Review for the quarter / nine
months ended on December 31, 2006 as required under clause 41 of the listing
agreement with the Stock Exchanges has been carried out by the Statutory
Auditor. 3. The Company is engaged in the steel business, which in the context
of Accounting Standard 17 issued by the Institute of Chartered Accountants of
India is considered the only business segment. 4. Two DRI Kiln & SMS plant
-1 which are part of integrated Steel Plant at Meramandali, Orissa, commended
production on trial run. 5. Implementation of AS 15 (as Revised) will be taken
up at the close of the year. 6. Previous year figures have been regrouped /
rearranged wherever considered necessary. 7. In terms of Clause 43 of the
Listing Agreement this is to inform that during the quarter ending 31.12.2006,
the Company has issued 1200000 Equity Shares of Rs.10/each at the premium of
Rs.200/- per share aggregating to Rs.24 Crores (Rs.3.60 Crores i.e. Rs.30/- per
warrant received alongwith application) on conversion of warrants alloted on
Preferential Basis and the said sum has been utilised in full for the purpose
of implementation of Company s Integrated Steel and Power Plant being set up in
the state of Orissa. s
KEY
RATIOS
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
Debt-Equity Ratio |
2.07 |
1.70 |
1.57 |
|
Long Term Debt-Equity Ratio |
1.46 |
1.08 |
1.09 |
|
Current Ratio |
1.10 |
1.12 |
1.19 |
|
|
|
|
|
TURNOVER RATIOS
|
|
|
|
|
Fixed Assets |
1.73 |
1.89 |
1.56 |
|
Inventory |
5.67 |
5.80 |
5.32 |
|
Debtors |
8.05 |
8.20 |
5.77 |
|
Interest Cover Ratio |
3.12 |
3.09 |
2.57 |
|
Operating Profit Margin (%) |
13.39 |
14.48 |
15.75 |
|
Profit Before Interest & Tax Margin (%) |
7.85 |
8.66 |
9.82 |
|
Cash Profit Margin (%) |
10.70 |
11.24 |
11.14 |
|
Adjusted Net Profit Margin (%) |
5.16 |
5.42 |
5.21 |
|
Return on Capital Employed (%) |
9.45 |
13.74 |
12.17 |
|
Return on Net Worth (%) |
19.06 |
1.89 |
1.56 |
STOCK PRICES
|
Face Value |
Rs. 10/- |
|
High |
Rs. 570.50 /- |
|
Low |
Rs. 552.00 /- |
LOCAL AGENCY FURTHER INFORMATION
Fixed Asset :
Tangible Assets
- Freehols
Land
- Leasehold
land\building
- Plant
& Machinery
- Assets
not Owned by company
- Furniture
and Fixtures
- Vehicals
Intangible Assets
- Computer
Software
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
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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
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Rajesh
Wire Netting Works
v
Real
Marble (Private) Limited
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Sai
Baba Stone Crusing
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Shah
Engineering
v
Shiv
Shakti Industries
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Swastik
Rubber Industries
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Tushaco
Pumps Limited
v
Vinod
Ceramic
v
Anand
Mechanical
v
Apollo
Engineering Works
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Aurtech
Construction Equipments Limited
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Aurtech
Hydracons
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Baba
Clutch Facing Workshop
v
Comet
Engineering Works
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Corotech
Bitumastic
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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.
HIGHLIGHTS
:
During the year under review your company has successfully commissioned
the largest Color Coated line at its Khapoli plant in the State of Maharashtra.
The Color Coated Sheets have been well accepted in the (European and USA
markets. Out of the total sales 90% contributed to the exports.
The company achieved the another landmark by commissioning the Galume line, an
aluminium and zinc coated patented product of the company for the first time in
the Country of its Khapoli plant. The product has been well accepted in the
international markets and 90% of the total sales contribute to the
exports.
During the period under report, the total income of the Company increased
to Rs.30827.900 Millions registering the growth of 14.64% over previous year
level of Rs.26889.400 Millions
EXPANSION PROJECT :
After successful implementation of various CR
& GP/GC projects and establishing a comfortable presence in automobile and
white goods products market, the Company is now moving further on process/
value chain of steel products through backward integration to set up a unit for
manufacture of HR Coil, Billets and Power Plant.
The Company's new HR plant is at the fast phase
of progress and the company expects the plant to commission as per schedule.
The total project encompasses installation of Hot Rolled Coil and Billets along
with power plant. In the first quarter of year 2006-07 the company shall start
2 kilns and 33 MW power plant while in the third quarter it should start 2
kilns and 77 MW power plant which will complete Phase I of the project.
This project has been designed in modular format where the company shall
start generating the cash accruals with completion of the part facilities
envisaged in the project. This will not only help the Company in moping up
higher margins in the value chain but also secure it against vagaries of demand
supply position of HR Coils that result in volatility in the prices of HR
Coils. Thereafter, on the raw material side, the Company will be exposed only
to the demand supply gap and adverse movement in the prices of iron ore and
coal. In order to completely insulate itself from even the iron ore and coke
price fluctuations, the Company also proposes to acquire captive coal and iron
ore mines in the vicinity of the Orissa plant to meet its internal
requirements, and has therefore applied to Orissa Government for allocation of iron
ore mines in Joda Barbil sector of Keonjhar District and coal mines in
Patrapara Coal Block in Orissa. The allotment letter for allocating the coal
mines has already been awarded to the Company on January 17, 2006.
The company has already spent Rs.13210.000 millions on the phase I of the
project and has placed substantial orders for the equipments mainly with SMS
Demag, Siemens, Danieli Carus, Techint, KCI Cranes, Paul Wurth, etc., to be
imported for phase II.
FINANCE :
During the year, the Company has raised a
Rupee term loan of Rs 6880.000 millions from SBI led syndication out of
sanctioned Rupee Term Loan of Rs 21000.000 millions for the integrated steel
plant at Orissa.
The company has received the approval of approx Euro 140 Million from Euller
Hermes for import of capital equipments from Germany. The approval of approx
Euro 5 Million has also been received from Atradius for import of capital goods
from Netherlands.
The Working Capital Facilities for the Sahibabad and Khapoli plants were
appraised by PNB, the lead bank for Rs. 18256.200 millions (Fund based
Rs.6150.000 millions including export credit and non fund based limit of
Rs.12106.200 millions ). The company has added two new banks in the consortium
namely Indus Ind bank and United bank of India. With this your company has 13
banks in the consortium with PNB as the lead bank and SBI as the second lead.
The company continues to enjoy long term rating of A + (ind single A
plus) by Fitch Rating India Pvt. Ltd.
The Fitch Rating India Pvt. Ltd. (FITCH) has
re-assigned the short term rating of F1 + for Rs. 1000.000 millions commercial
paper programme of the company.
Credit Analysis and Research Ltd., (CARE) has assigned short term rating
PR1 + for Rs. 500.000 millions
EXPORTS :
The Company's products have been well recognized in the International
Market as conforming to the stringent International Standards. Our products are
being exported across the Globe. During the year, your Company has successfully
penetrated into European and USA markets. The total exports of the company
during the year under review are Rs. 10060.000 millions
During the Financial Year 2005-06, we have
developed new value added product called 'Galume' with highly corrosion
resistant coating containing nominally 55% aluminum and 43% zinc, by weight,
the balance primarily silicon, is used to effect excellent adhesion to steel
substrate. We have purchased this technology from Ajax, USA, Thermo
radiometric, Germany and Coater from GFG, USA. We are the only producer of this
product in India, this product we are exporting mainly to USA, Latin America,
Europe, South Africa, West Africa and Gulf and quality of the product is
accepted world wide and we are getting good response and premium on this
product. After addition of this product our turnover of export will be
increased.
QUALITY :
In today's global competition and open economy,
quality plays a vital role in marketing the products and stay ahead of others.
Therefore, great emphasis is given to manufacturing products that meet high
standards of quality in the global market and customer satisfaction.
Proactive efforts are directed towards determining customers'
requirements and achieving all-round customer satisfaction. This is primarily
achieved through automated systems (reducing manual handling to a minimum),
high attention to complaint resolution, online communication and information
exchange, quality circles.
INDUSTRY
STRUCTURE & DEVELOPMENTS :
The steel industry is divided into primary and secondary sectors. The primary
sector produces billets, plates, rounds and Hot Rolled (HR) Coils/Plates. These
form raw materials for the secondary sector, which produces value added items such
as angles, channels, wire rod, cold rolled coils / sheets and galvanised
coils/sheets. Cold Rolled (CR) Sheet is a thinner sheet used for consumer
durables (refrigerators, washing machines etc.,), automobiles, bicycles etc.,
CR sheets are used by the automobile and domestic appliances industry whereas
CR strips are used in manufacturing of bicycles, drums, barrel, fabrication,
furniture etc. CR coils are mainly used for manufacturing GP/GC sheets.
BSSL falls under secondary sector and has a strong presence in the OEM
and export segments. This continues to provide stability to its earnings
profile.
THE GLOBAL STEEL
INDUSTRY :
World crude steel production stood at approx. 1.12 billion tons in 2005. China
-today's largest steel producer and consumer by far - continues and is expected
to continue to lead the global steel industry as both its production and
consumption have shown a remarkable growth.
In addition to the critical importance of China's impact on the sector other
major factors impacting the global scenario are :
i) The relatively recent and tight supply conditions of key raw materials
namely iron ore and coking coal, which have widened the comparative advantage
of integrated steel producers that have captive mines producing both these
inputs, over those that depend on external suppliers. This situation is
exacerbated by the highly concentrated nature of the world's ore production
coupled with constraints in freight capacity. Large steelmakers are reacting to
this and are migrating to low-cost, iron ore rich locations.
ii) The industry is increasingly becoming more global, in terms of both
production and trade, not only because of access to key raw materials but also
thanks to cost pressures and declining steel tariffs in a number of countries
in line with their WTO commitments.
INDIAN STEEL INDUSTRY :
India derives its competitive advantage in steel making from the availability
of abundant quality reserves of iron ore and coal, a fast growing domestic
market driven by infrastructure, construction, automotive and consumer goods
sectors as well as a highly skilled and low cost workforce. The economy grew at
8.1% in FY 2006. The trend for steel consumption is generally 1-2% higher than
the GDP growth rate.
At present, the market is competitive with
domestic prices closely correlated to international prices. Indian
manufacturers generally peg their prices at around the landed cost of steel
imports, which include freight, insurance, the import duty and other handling
charges. These different charges, along with inland transportation charges,
provide some proximity advantage to local producers. However, as the value
added segment is very quality sensitive, and imports are not able to cater to
the specific requirements of the segment BSSL caters to.
Capacity Expansions
Taking advantage of the upturn in the demand cycle, a number of steel makers
have started modernizing and/or expanding their plants while others have
announced new capital spending in greenfield projects.
With respect to flats it is expected that an additional steel making
capacity of 5 -7 million MT may come on stream over the next 4-5 years subject
to favourable market conditions and availability of finance. This projected
growth does not take into account big greenfield projects announced for
implementation in Orissa most of which are unlikely to come on stream before
2010. BSSL expects to have a first mover advantage in this regard, as its plant
is scheduled for completion by FY 2009 itself.
OPPORTUNITIES & THREATS
:
Riding on the back of favourable conditions like
competitive prices, easy and abundant consumer finance, untapped rural demand
in case of white goods/consumer durables and soft finance schemes including tax
rebate and massive government expenditure on housing and infrastructure, the
following are likely to be the key drivers for increased steel demand in the
near future:
1. Automobiles :
Hot rolled flats are used in automobiles, as chassis, bumpers and clutch
covers. In general, steel constitutes 60% of the weight of a car body. Cold
rolled coils and sheets are used to manufacture auto bodies (for commercial
vehicles, cars, tractors, two and three wheelers), and auto components (such as
clutch assembly, bearings and horns). Coated sheets are also used in the
manufacture of auto bodies. Total four-wheeler production in FY05 rose to 1.55
million vehicles, clocking a growth rate of 23%. Over the next five year, sales
(domestic as well as exports) of passenger vehicles - main user segment of auto
market for flats - is expected to grow at a compound rate of 14% to just under
2.5 million vehicles while the commercial vehicle market is projected to grow
of a lower 4-5% rate.
2. Consumer Durables :
The five year demand projections for various segments of the consumer durables
marketplace range between 5%-20%. As this consumer durables sector is a major
end-use sector for cold rolled flats with white goods (the outer panel of most
white goods is made of cold rolled or galvanized sheets) and furniture
accounting for around 10.6% of total consumption, demand in the flat steel
segment is also likely to be driven by the underlying growth in this
sector.
3. Construction :
Long products are used extensively in the construction sector, which
consumes over 10 million tons of steel annually, and is projected to grow at
around 20% for the next five year period. However, as compared with
international norms, the construction industry in India is not steel -intensive
and there is a further scope for improvement for broadening the base in this
market.
Flat products are also used in the construction sector. Hot rolled steel
coils and sheets are used in structural materials and welded pipes. Cold rolled
sheets and coils are used in press formed components, which in turn are used in
construction, for making tanks and containers. Galvanized sheets are largely
used in roofing, slide cladding, making water tanks and as fencing
material.
4. Pipes and Tubes :
Flat steel demand is likely to get a significant pull from the piping sector,
thanks to an increased emphasis on gas, irrigation and water supply projects.
Currently, the country has around 6,300 km of pipeline in place. It is
estimated that the pipeline network will more than double in the next 5-7 years
.
EXPORTS - THE CHINA FACTOR
:
China remained the world's largest steel producer, while India occupied the
seventh position. Chinese market, which was the driver for most of the growth
in the steel industry in the last two years has now become a small net
exporter. This situation is not expected to lead to an oversupply elsewhere
thanks to generally strong demand and the Chinese Government tightening its
policy. The Government of China has imposed restrictions on new capacity
investments by local producers as well as lending to the sector. Chinese
producers already face limited raw material availability, power shortages and
the need to export due to increased domestic supply and tough domestic competition.
These factors will likely lead to a reduced rate of new capacity addition in
China. Also, given that steel is a visible industry, the Chinese Government
will likely prevent its steelmakers from dumping abroad.
PERFORMANCE
The Company is engaged in the Steel business,
which in context of Accounting Standard 17 issued by the Institute of Chartered
Accountants of India is considered the only business segment.
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 improvingthe
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. 42.15 |
|
UK Pound |
1 |
Rs. 84.38 |
|
Euro |
1 |
Rs. 57.22 |
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 |