MIRA
INFORM REPORT
|
Report Date : |
12.01.2007 |
IDENTIFICATION DETAILS
|
Name : |
THE TATA IRON AND STEEL COMPANY
LIMITED |
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Now Known As : |
TATA STEEL LIMITED |
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Registered Office : |
Bombay House, 24, Homi Mody Street,
Fort, Mumbai - 400 001, Maharashtra, India |
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Country: |
India |
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Financials
(as on) : |
31.03.2006 |
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Date of Incorporation : |
20.08.1907 |
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Com. Reg. No.: |
11-260 |
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CIN
No.: [Company
Identification No.] |
L27100MH1907PLC000260 |
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TAN
No.: [Tax
Deduction & Collection Account No.] |
MUMT00249E |
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PAN
No.: [Permanent
Account No.] |
AAACT2803M |
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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 : |
Manufacturers of
saleable steel, ferro manganese, charge chrome, welded steel tubes, cold
rolled strips, seamless tubes, carbon and alloy steel bearing rings, annular
forgings and flanges, metallurgical machinery, ammonium sulphate, ordinary
cement, fortland blast furnace slag cement, alloy steel ball bearing rings
and bearings. |
RATING
& COMMENTS
|
MIRA’s Rating : |
Aa |
RATING |
STATUS |
PROPOSED CREDIT LINE |
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|
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 |
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Maximum Credit Limit : |
USD 390000000 |
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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 and
reputed company of TATA Group, the country's premier industrial house.
Available information indicates high financial responsibility of the company. Financial position is satisfactory.
Payments are usually correct and as per commitments. The Company can be
considered good for any normal business dealings. |
LOCATIONS
|
Registered Office : |
Bombay House, 24, Homi Mody Street,
Fort, Mumbai - 400 001, Maharashtra, India |
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Tel. No.: |
91-22-56658282 |
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Fax No.: |
91-22-56658113 / 56658119 |
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E-Mail : |
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Website : |
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Factory 1 : |
·
Jamshedpur, Jharkhand - Tubes
Division ·
Khargapur, West Bengal - Bearings
Division ·
Joda, Orissa - Ferro Manganese Plant ·
Tarapur, Maharashtra; Navsari,
Sisodra, Gujarat - Cold Rolling Complex (West) ·
Bamnipal, Orissa - Charge Chrome
Plant ·
States of Jharkhand, Orissa and
Karnataka - Mines, Collieries & Quarries ·
Borivali, Mumbai; Tarapur – Wire
Division |
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Branches : |
43, Chowringhee Road, Kolkata – 700
071, West Bengal |
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Tel. No.: |
91-657-2431024 |
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Fax No.: |
91-657-2431818 |
DIRECTORS
|
Name : |
Mr. R. N. Tata |
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Designation : |
Chairman |
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Name : |
Mr. B. Muthuraman |
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Designation : |
Managing
Director |
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Name : |
Mr. Keshub Mahindra |
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Designation : |
Director |
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Name : |
Mr. Nusli N. Wadia |
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Designation : |
Director |
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Name : |
Mr. S. M. Palia |
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Designation : |
Director |
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Name : |
Mr. P. K. Kaul |
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Designation : |
Director –
Financial Institutions Nominee |
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Name : |
Mr. Suresh Krishna |
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Designation : |
Director |
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Name : |
Mr. Kumar Mangalam Birla |
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Designation : |
Director |
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Name : |
Mr. Ishaat Hussain |
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Designation : |
Director |
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Name : |
Dr. Jamshed J. Irani |
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Designation : |
Director |
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Name : |
Mr. B. Jitender |
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Designation : |
Director |
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Name : |
Dr. T. Mukherji |
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Designation : |
Director –
Financial Institutions Nominee |
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Name : |
Mr. A. N. Singh |
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Designation : |
Whole Time
Director |
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Name : |
Mr. J. J. Irani |
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Designation : |
Director |
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Name : |
Mr. J . C. Bham |
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Designation : |
Company
Secretary |
MAJOR
SHAREHOLDERS
|
Names of Shareholders |
No.
of Shares |
Percentage
of Holding |
|
Individuals |
119365229 |
32.46% |
|
Unit Trust of India |
9535395 |
2.59% |
|
Life Insurance Corporation of India |
49402824 |
13.43% |
|
Government and other public financial
institutions |
25046145 |
6.82% |
|
Tata Group Companies |
97133796 |
26.41% |
|
Companies |
21510823 |
5.85% |
|
Nationalised banks, mutual funds and
trusts |
28258644 |
7.68% |
|
Foreign institutional investors |
17519045 |
4.76% |
BUSINESS
DETAILS
|
Line of Business : |
Manufacturers of
saleable steel, ferro manganese, charge chrome, welded steel tubes, cold
rolled strips, seamless tubes, carbon and alloy steel bearing rings, annular
forgings and flanges, metallurgical machinery, ammonium sulphate, ordinary
cement, fortland blast furnace slag cement, alloy steel ball bearing rings
and bearings. |
GENERAL
INFORMATION
|
No. of Employees : |
43248 |
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Bankers : |
·
State Bank of India, Madame came
Road, Mumbai – 400 021 ·
Central Bank of India, Madras Stock
Exchange building, 11, 2nd Line Beach, Chennai – 600 001 ·
Standard Chartered Bank, 4,Netaji
Subhas Road, Kolkata - 700001
Facilities : Working Capital
Demand Loan : Rs. 450.0 millions
& Cash Credit : Rs. 3950.8 millions are secured by hypothecation of
stocks, stores and book debts, ranking in priority to the floating charge. ·
Industrial Development Bank of India Facility : Loan :
Rs. 150.0 millions ·
Citibank International p.l.c. Facility : Syndicated loan : Rs.
720.7 millions |
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Facilities
: |
Figures
are in Rupees Millions
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Auditors : |
·
F. Ferguson & Company
Chartered Accountants ·
S. B. Billimoria & Company Chartered Accountants |
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Associates : |
·
Tata Teleservices Limited ·
Nicco Jubilee Park Limited ·
Jamshedpur Injection Powder Limited ·
Kalinga Aquatics Limited ·
Adityapur Toll Bridge Limited ·
Tinplate Company of India Limited ·
TRF Limited ·
Tata Yodogawa Limited ·
Tata Sponge Iron Limited ·
Metaljunction.com Private Limited ·
Tata Metaliks Limited ·
Tata Ryerson Limited ·
Tata Construction & Projects
Limited ·
Rujuvalika Investments Limited ·
Indian Steel Rolling Mills Limited ·
Kumardhubi Fireclay & Silica
Works Limited ·
Kumardhubi Metal Casting &
Engineering Limited ·
TKM Overseas Limited ·
TKM Transport Management Services
Private Limited ·
Almora Magnesite Limited ·
Nilachal Refractories Limited ·
Rallis India Limited ·
Tata Finance Limited |
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Subsidiaries |
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Membership : |
Confederation of
Indian Industry |
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Parent Company : |
Tata Sons Limited |
CAPITAL
STRUCTURE
Authorised Capital
:
|
No. of Shares |
Type |
Value |
Amount |
|
60,00,00,000 |
Ordinary Shares |
Rs
10/- each |
Rs
6000.000 Millions |
|
2,50,00,000 |
Cumulative Redeemable Preference
Shares |
Rs.
100/- each |
Rs.
2500.000 millions |
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|
|
|
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Total |
|
Rs. 8500.000 millions |
Issued Capital
:
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
55,40,74,932 |
Ordinary Shares |
Rs.
10/- each |
Rs.5540.700
millions |
Subscribed & Paid-up Capital
:
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
55,34,72,856 |
Ordinary Shares of |
Rs.
10/- each |
Rs.5534.700
millions |
|
Add: |
Amount Paid up on 389516 Ordinary
Shares Forfeited |
|
Rs.
2.000 millions |
|
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Total |
|
Rs. 5536.700 millions |
FINANCIAL DATA
[all
figures are in Rupees Millions]
ABRIDGED BALANCE SHEET
|
SOURCES OF FUNDS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
5536.700 |
5536.700 |
3691.800 |
|
|
2] Reserves & Surplus |
92016.300 |
65062.500 |
41466.800 |
|
NETWORTH
|
97553.000 |
70599.200 |
45158.600 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
21917.400 |
24681.800 |
30101.600 |
|
|
2] Unsecured Loans |
3244.100 |
2715.200 |
3631.200 |
|
TOTAL BORROWING
|
25161.500 |
27397.000 |
33732.800 |
|
|
DEFERRED TAX LIABILITIES |
9570.000 |
0.000 |
0.000 |
|
|
|
|
|
|
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PROVISION FOR
EMPLOYEE SEPARATAION COMPENSATION
|
13887.100 |
0.000 |
0.000 |
|
|
|
|
|
|
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TOTAL
|
146171.600 |
97996.200 |
78891.400 |
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APPLICATION OF
FUNDS
|
|
|
|
|
|
|
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|
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FIXED ASSETS [Net
Block]
|
98650.500 |
72395.800 |
70942.100 |
|
Capital
work-in-progress
|
|
18726.600 |
7636.400 |
|
|
|
|
|
|
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INVESTMENT
|
40699.600 |
24326.500 |
21941.200 |
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|
|
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CURRENT ASSETS,
LOANS & ADVANCES
|
|
|
|
|
|
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Inventories
|
17320.900 |
18724.000 |
12490.800 |
|
|
Sundry Debtors
|
5394.000 |
5818.200 |
6513.000 |
|
|
Cash & Bank
Balances
|
2883.900 |
2467.200 |
2507.400 |
|
|
Other Current
Assets
|
4428.600 |
0.000 |
0.000 |
|
|
Loans &
Advances
|
12348.600 |
21606.300 |
27824.900 |
Total
Current Assets
|
42376.000 |
48615.700 |
49336.100 |
|
Less : CURRENT LIABILITIES & PROVISIONS
|
|
|
|
|
|
|
Current
Liabilities
|
28359.900 |
42972.400 |
39089.300 |
|
|
Provisions
|
9727.300 |
25244.200 |
33434.800 |
Total
Current Liabilities
|
38087.200 |
68216.600 |
72524.100
|
|
Net Current Assets
|
4288.800 |
(19600.900) |
(23188.000) |
|
|
|
|
|
|
|
MISCELLANEOUS
EXPENSES
|
2532.700 |
2148.200 |
1559.700 |
|
|
|
|
|
|
|
TOTAL
|
146171.600 |
97996.200 |
78891.400 |
|
PROFIT
& LOSS ACCOUNT
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
Sales Turnover
[including other income]
|
153941.500 |
146469.800 |
122788.000 |
|
|
|
|
|
Profit/(Loss)
Before Tax
|
52399.600 |
52972.800 |
26659.600 |
Provision for
Taxation
|
17335.800 |
18231.200 |
9197.400 |
Profit/(Loss) After
Tax
|
35063.800 |
34741.600 |
17462.200 |
|
|
|
|
|
Dividend
|
7195.100 |
7195.100 |
3689.800 |
|
|
|
|
|
Total Expenditure
|
101014.200 |
92591.700 |
89124.500 |
QUARTERLY
|
PARTICULARS |
|
30.06.2006 |
30.09.2006 |
|
|
|
1st Qtr |
2nd
Qtr |
|
Sales Turnover |
|
391588.500 |
41857.500 |
|
Other Income |
|
779.300 |
303.300 |
|
Total Income |
|
39937.800 |
43629.800 |
|
Total Expenditure |
|
23529.900 |
25251.900 |
|
Operating Profit |
|
16407.900 |
18377.900 |
|
Interest |
|
292.900 |
477.700 |
|
Gross Profit |
|
16115.000 |
17900.200 |
|
Depreciation |
|
1951.400 |
1957.300 |
|
Tax |
|
4615.000 |
5265.000 |
|
Reported PAT |
|
9534.100 |
11014.900 |
200606 Quarter 1 --------------- Notes Expenditure includes
(Increase)/Decrease in stock in Trade Rs (698.90) million Purchases of
finished, semi-finished steel Rs 1372.80 million and other products Raw
materials consumed Rs 6966.30 million Staff Cost Rs 3034.00 million Purchase of
Power Rs 2284.80 million Freight and handling Rs 2584.90 million Other
expenditure Rs 7801.60 million Tax Includes Provision for Current Tax Rs
4580.00 million Deferred Tax Rs 14.50 million Fringe Benefits Tax Rs 35.00
million Extraordinary items indicates Employee Separation Compensation EPS is
Basic & Diluted Status of Investor Complaints for the quarter ended June
30, 2006 Complaints Pending at the beginning of the quarter 07 Complaints Received
during the quarter 15 Complaints disposed off during the quarter 19 Complaints
unresolved at the end of the quarter 03 1. Pursuant to share subscription and
joint venture agreements dated November 23, 2005 with BlueScope Steel Ltd,
Australia and consequent to an investment of Rs 1300 million during the quarter
Tata BlueScope Steel Ltd became a 50:50 joint venture. 2. Tata Steel (KZN)
(Proprietary) Ltd, South Africa became a subsidiary of the Company during the
quarter. The Company has invested an amount of ZAR 40 million (Rs 258.80
million) during the period. 3. Accounting Standard (AS) 15 (revised 2005) on
Employee Benefits became effective on April 01, 2006. Consequently an
additional expenditure of Rs 20.30 million has been charged to the profit &
loss account during the quarter. In accordance with the provisions of the
standard the Company has made an adjustment of Rs 3030.40 million (net of
deferred tax, Rs 1537.60 million) against the opening balance of the general
reserve. 4. Figures for the previous period have been regrouped and
reclassified to conform to the classification of the current period, wherever
necessary. 5. The above results have been taken on record in the Board meeting
of July 21, 2006.
200609 Quarter 2 --------------- Notes Expenditure includes
(Increase)/Decrease in stock in Trade Rs 10.30 million Purchases of finished,
semi-finished steel Rs 918.70 million and other products Raw materials consumed
Rs 7326.30 million Staff Cost Rs 3627.10 million Purchase of Power Rs 2256.10
million Freight and handling Rs 2746.70 million Other expenditure Rs 7924.10
million Tax Includes Provision for Current Tax Rs 5200.00 million Deferred Tax
Rs (337.00) million Fringe Benefits Tax Rs 65.00 million Extraordinary items
indicates Employee Separation Compensation EPS is Basic & Diluted Status of
Investor Complaints for the quarter ended September 30, 2006 Complaints Pending
at the beginning of the quarter 03 Complaints Received during the quarter 18
Complaints disposed off during the quarter 17 Complaints unresolved at the end
of the quarter 04 - Complaints Pertaining to receipt of dividend warrants for
2005-06 Complaints Pending at the beginning of the quarter Nil Complaints
Received during the quarter 278 Complaints disposed off during the quarter 70 Complaints
unresolved at the end of the quarter 208 1. In accordance with the
shareholders' approval in the annual general meeting held on July 05, 2006, the
Company has, on a preferential basis, issued the following securities to Tata
Sons Ltd, in accordance with the provisions of Chapter XIII of the SEBI
(Disclosure and Investor Protection) Guidelines, 2000. * 2,70,00,000 Ordinary
Shares of Rs 10 each at a price of Rs 516 per share aggregating Rs 13932.00
million. * 2,85,00,000 Warrants, where each Warrant would entitle Tate Sons Ltd
to subscribe to one Ordinary Share of the Company against payment in cash as
per the SEBI Guidelines, an amount equivalent to 10% of the price i.e. Rs 51.60
per Warrant has been received from Tata Sons Ltd on allotment of the Warrants.
The price at which the Warrants will be exercise will be determined in
accordance with the SEBI prescribed pricing formula applicable at the time of
exercise. Accordingly the outstanding warrants have not been considered for
computation of diluted earnings per share 2. The Board of Directors at its
meeting held on October 20, 2006, has approved the / proposed acquisition of
the entire issued share capital of Corus Group plc ('Corus') at a price of 455
pence per share in cash valuing 100% equity of Corus at GBP 4.3 billion (Rs
372860.00 million). The acquisition is proposed to be made by Tata Steel U.K.,
a wholly-owned indirect subsidiary of Tata Steel. The above acquisition through
the Scheme of Arrangements is subject to the approvals of the High Court of
Justice in England and Wales and the shareholders of Corus. The proposed
acquisition would be financed through equity contribution by Tata Steel of
around US $ 3.5 billion (Rs. 158620.00 million) and the balance through
non-recourse debt on Tata Steel UK to be serviced through the cash flows of
Corus. 3. Figures for the previous period have been regrouped and reclassified
to conform to the classification of the current period, wherever necessary. 4.
The above results have been taken on record in the Board meeting of October 30,
2006.
KEY RATIOS
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
Debt
Equity Ratio |
0.31 |
0.53 |
0.99 |
|
Long Term
Debt Equity Ratio |
0.30 |
0.51 |
0.95 |
|
Current
Ratio |
0.71 |
0.65 |
0.70 |
|
TURNOVER
RATIOS |
|
|
|
|
Fixed
Assets |
1.20 |
1.24 |
0.97 |
|
Inventory |
8.47 |
10.17 |
9.93 |
|
Debtors |
30.58 |
25.75 |
14.81 |
|
Interest
Cover Ratio |
32.11 |
24.15 |
12.74 |
|
Operating
Profit Margin (%) |
36.07 |
38.70 |
29.51 |
|
Profit
Before Interest and Tax Margin (%) |
31.55 |
34.81 |
24.27 |
|
Cash
Profit Margin (%) |
24.97 |
25.78 |
19.89 |
|
Adjusted
Net Profit Margin (%) |
20.45 |
21.88 |
14.65 |
|
Return on
Capital Employed (%) |
50.07 |
63.79 |
38.21 |
|
Return on
Net Worth (%) |
41.70 |
60.02 |
45.36 |
STOCK PRICES
|
Face
Value |
Rs. 10/-
each |
|
High |
Rs.475.50 |
|
Low |
Rs.487.90 |
LOCAL
AGENCY FURTHER INFORMATION
Change
of Name
Pursuant to the shareholder’s approval obtained at the last
annual general meeting, the name of the company was changed from ‘The Tata Iron
And Steel Company Limited’ to ‘Tata Steel Limited’ with effect from 12th
August 2005.
History
The Tata Iron and Steel Company (TISCO) was
incorporated in 1907. Its subsidiaries include Tata Refractories, Tata
Pigments, Kalimati Investment, Tata Korf, Tata Incorporated, Stewarts &
Lloyds of India and Tata SSL. The name of the company has been changed to
Tata Steel Limited W.E.F.12THH Augest, 2005
Over the years, TISCO has diversified to manufacture, apart from saleable
steel, welded-steel tubes, cold-rolled strips, seamless tubes, carbon and alloy
steel bearing rings, alloy steel ball bearing rings, bearings, ferro manganese,
ferro chrome, metallurgical machinery, etc. In 1993, TISCO commissioned two
cement plants with a combined capacity of 1.78 mtpa at Sonadih, MP, and
Jamshedpur, Bihar. It also commissioned a 1-mtpa hot-strip mill to produce
hot-rolled coils.
In 1994-95, the company completed the third phase of its modernisation
programme whereby the installed capacity of saleable steel increased to 2.7
mtpa. In Feb.'94, it successfully completed its Euro-convertible bond issue of
$100 mln. The company's plants at Jamshedpur, Bamnipal (Orissa) and Kharagpur
was accorded the ISO 9002 certification. During 1998-99, the company's
modernisation Phase IV was completed. In 1999-2000, the company's cement plant
was sold to Lafarge.
The company has signed a contract with IBM for outsourcing its
information technology infrastructure. The scope of the contract with IBM would
broadly include the following :- (1) Maintain data centre hardware and netwoks
at Jamshedpur, Calcutta and some other locations. (2) Support of all systems
software from IBM (3) Maintenance of PCs, LANs and non-IBM hardware with
certain exception. (4) Operation of data centres. (5) Help Desk, including
co-ordination with other service providers. (6) Refresh of hardware as per
agreed schedule.
The company's Cold rolling mill was inaugurated in Apr.'00 in a world
record time of 26 1/2 months. The invested capital was the lowest in the world
for a mill of its kind. The second Galvanising Line - CGL 2, which targets the
high-end market for galvanised CR products was commissioned in Jun.'01.
Over the years, subject has diversified into manufacture,
apart from saleable steel, welded-steel tubes, cold-rolled strips, seamless
tubes, carbon and alloy steel bearing rings, alloy steel ball bearing rings,
bearings, ferro manganese, ferro chrome, metallurgical machinery, etc. In 1993, it commissioned two cement plants
with a combined capacity of 1.78 mtpa at Sonadih, Madhya Pradesh and
Jamshedpur, Jharkhand. It also commissioned a 1-mtpa hot-strip mill to produce
hot-rolled coils.
In 1994-95, the company completed the third phase of its
modernisation programme, increasing the installed capacity of saleable steel to
2.7 mtpa. In February, 1994, it successfully completed its Euro-convertible
bond issue of $100 mn. The company's plants at Jamshedpur, Bamnipal (Orissa)
and Kharagpur have been accorded the ISO 9002 certification. During 1998-99,
the company's modernisation Phase IV was completed. In 1999-2000, the company's
cement plant was sold to Lafarge.
With the merger of Tata Technodyne Limited (TTL) with TRF Limited, TTL ceased to exist with effect from 1st
March, 2000.
The company has signed a contract with IBM for outsourcing
its information technology infrastructure. The scope of the contract with IBM
would broadly include the following :- (1) Maintain data centre hardware and
networks at Jamshedpur, Kolkata and some other locations. (2) Support of all
systems software from IBM (3) Maintenance of PCs, LANs and non-IBM hardware
with certain exception. (4) Operation of data centres. (5) Help Desk, including
co-ordination with other service providers. (6) Refresh of hardware as per
agreed schedule.
The company's cold rolling mill was inaugurated in April, 2000 in a world
record time of 26 1/2 months. The invested capital is the lowest in the world
for a mill of its kind. The 13 month Ramp-up is well on course and it reached
100% capacity utilisation in June, 2001.
The second Galvanising Line - CGL 2, which targets the high-end market for
galvanised CR product would be commissioned in June, 2001.
In March 2001, the company commissioned expansion of its bearings capacity from
15 million to 25 million bearings. The plant for expansion was bought from
Antifriction Bearings.
In fiscal 00-01, Tisco acquired Tata SSL, a major player in steel wires. After
prior approval Tata SSL Limited was merged with TISCO. Pursuant to merger the
shareholders of Tata SSL Limited were allotted 12,10,003 ordinary shares of the
company.
Ferrochrome business is not a profitable business in
India. Since power is one fifth in
Australia compared to India, the company plans to take its raw material over
there and produce and sell it to the world.
The Ferrochorme project at Ricards Bay, South Africa to produce 120000
tonnes is progressing well. Since the
project will be implemented as a joint venture with a local partner the project
is expected to be commissioned in the year 2005.
A geological
investigation is being done by the company for its Titania Project. A Mou was
also signed and the feasibility study is expected to be completed in about 18
months. The company has chosen the locations in the districts of Tirunelveli
and Tuticorin. The company has chalked out an expansion programme whereby the
crude steel making capacity will be increased by about 1 million tones.
BUSINESS
RESULTS
Globally, steel consumption and
production continued to grow and China continued to be the
largest contributor to this
consumption growth.
Economic conditions around the world
have been encouraging. The US saw sustained GDP growth of over 2% throughout
the year while Japan moved out of deflationary conditions and even Europe has
showed signs of industrial growth and consumption by the end of the last
financial year.
During the first half of the year,
steel prices rose steeply before coming off during the third quarter and fourth
quarter. At the same time, commodity prices reached record highs. Prices of
Iron Ore, Coke and Zinc have risen significantly throughoutthe year.
China
along with other developing economies likeIndia are likely to continue to drive
demand growth in steel, while Europe and US demand is also likely to remain
robust. The outlook for the industry remains positive though rising costs on
account of raw materials, freight and energy will keep themargins under
pressure.
The
Indian economy grew at an estimated 8.1% in FY '06. This includes a strong
performance in steel consuming sectors like automobiles, engineering,
constructions and white goods. The
Government
has substantially increased the allocation for various infrastructure projects
underthe Bharat Nirman program which is expected to be implemented over the
next couple of years.
The
foreign exchange reserves of the country increased to around USD 150 billion at
the end Indian Rupee has been volatile throughout the previous year reflecting
the global conditions of increased dollar volatility. The Government of India
has announced that India would favourably look at capital convertibility of the
Rupee in the future.
These factors
indicate that India is at the inflexion point of development which bode well
for the domestic steel industry in the future. The pace of India's development
would depend on the execution of the various infrastructure projects announced
by the Government during the year. Company too has developed a long term
strategy of developing a strong base in India, pursuing the de-integrated
production capability of making intermediate steel in low cost geographies and
finishing in growing and developed markets. In pursuing this strategy, Company
is developing a strong base in India by further expansion of Jamshedpur
operations and planning to build Greenfield Projects in Orissa, Chhattisgarh
and Jharkhand in the next decade. Company is also working towards ownership and
development of additional raw material sources in India and overseas for its
enhanced operations. As part of the de-integrated strategy, your Company signed
the definitive arrangements on December 15, 2005 with Cementhai Holding
Thailand for the acquisition of significant shareholding in Millennium Steel
Company, Thailand. The transaction was completed on 4th April, 2006.Company
will continue to explore opportunities to grow through organic and inorganic
options to emerge as a global player in the steel industry.Your Company is
pursuing its goal of becoming a 25-30 mtpa company by 2015.
The Net
Profit after taxes at Rs 3,5063.800 Millions was marginally higher in
comparison to previous year. Operating profit was marginally lower at Rs.
59315.100 Millions as against Rs.60453.600 Millions in the previous year. Lower
levels of debt contributed to a reduction in gross interest charges at Rs.
1684.400 Million (2004-05 : Rs. 2288.000 Millions). Net interest
charges were also correspondingly lower at Rs.118.44 crores (2004-05 :
Rs.1868.000 Millions). Provision for depreciation was Rs. 7751.000 Millions
(2004-05 : Rs. 6187.800 Millions) due to capitalization of 1 mtpa expansion
project. After providing Rs. 527.700 Millions towards expenses for
employee separation compensation (2004-05 :Rs. 1191.100 Millions), profit
before taxes was lower at Rs. 52399.600 Millions (2004-05 : Rs. 5,2972.800
Millions).
All the Blast Furnaces of the
Company performedwell during the year. 'G' Blast Furnace which was upgraded and
re-commissioned during the year has already achieved the production rate of 2.0
mtpa as against its rated capacity of 1.8 mtpa. The increased hot metal
production reduced the dependence on purchased semi finished materials and
helped in reducing the cost further
The Company achieved significant
operational improvements during the year especially in the
area of reduction of ash content in
domestic coal.
During the year under review, your
Company has achieved production of 5 mtpa hot metal for the first time in its
history.
The
Company has forayed into organized steel retailing by opening
"steeljunction" at Kolkata, a
one-stop shop for steel products
like pipe, tube, wire, sheet, builders hardware, architectural items, lifestyle
products, kitchen products, etc. This will enable architects, interior
decorators and builders in and around Kolkata to easily access steel products
for their use. In future, similar hubs may also be set up in other locations.
The Company has been ranked
consecutively for the second time as the Best Steel Making
Company by World Steel Dynamics
Inc., USA based on study of 22 world-class steel makers.
Pursuant to the Accounting Standard
AS – 21 issued by the Institute of Chartered Accountants
of India, consolidated financial
statements presented by the Company includes financial
information of its subsidiaries. The
Company has received the exemption under Section 212(8) of the Companies Act,
1956 from attaching the Balance Sheet, Profit and Loss Account and other
documents of the subsidiary companies to the Balance Sheet of the Company vide
letter
No. 47/191/2006-CL-lll dated 27th
April, 2006 from the Ministry of Company Affairs,Government of India, New
Delhi. The Company will make available these documents/details upon request by
any member of the Company or subsidiary company.
INVESTMENT IN MILLENNIUM STEEL
PUBLIC COMPANY LIMITED, THAILAND
In line with the plans of creating a
global presence in existing business lines through de-integrated production
strategy, the Company acquired 67.11% of equity stake in Millennium Steel,
Thailand at a cost of approximately Rs.7800.000 Millions. The investment was
completed through a combination of preferential allotment of 24.99%equity
shares to the Company and acqusition of the Company has managed to lock in
attractive rates and tenor of funds for its planned expansion.
Company contracted a US Dollar 400
Million loan through the IFC, a US Dollar 500 Million loan
Syndicated to commercial banks and
two Export Credit Agency (Italian and German) insured loans for Capital Imports
totalling to USD 74 Million. The surplus fund of the Company not required
immediately has been temporarily invested in money market mutual funds taking
into account risk adjusted return. The total investment in mutual fund as on 31
st March, 2006 stood at Rs. 2,0266.300 Millions.
Company has reduced its net
borrowings during the year by Rs. 2613.600 Millions. Short-term
borrowings have increased by Rs.
378.000 Millions over the previous year on account of import
transaction. Overall borrowings have
decreased by Rs. 2235.500 Millions to Rs. 2,5161.500 Millions as
compared to Rs. 2,7397.000 Millions
at the end of the previous fiscal year. Consequently, the debt:
equity ratio has come down from 0.54
at the beginning of the year under review to 0.29 at the
end of the year.
CAPITAL PROJECTS
The Company has initiated a program
for expansion of crude steel making capacity at
Jamshedpur by 1.8 mtpa. The
expansion project is expected to be completed by 2008.
The increased requirement of coke
would be sourced from Hooghly Met Coke & Power
Company Limited, a subsidiary of the
Company. The coke making capacity to be set up at Haldia is also being
augmented from 0.8 mtpa to 1.2 mtpa along with power generating capacity from
60 MW to 90 MW. The production is expected to commence during 2007.
During the year under review, the
Company incurred capital expenditure of Rs.15275.800 Millions.
GREENFIELD PROJECTS
The Company has embarked upon
setting upvarious greenfield projects. The project in Orissa
envisages setting up an integrated
steel plant of 6 mtpa capacity in two phases of 3 mtpa each at Kalinganagar.
The Company has signed MoU with the Government of Chhattisgarh to set up a 5
mtpa capacity steel plant in 2 phases.
The Company has also signed an MoU
with Government of Jharkhand to set up a 12 mtpa steel plant in Jharkhand in 2
phases of 6 mtpa each.The above plants would be set up subject to
raw materials linkage and receipt of
all approvals.
The Company has envisaged setting up
a 2.4 mtpa steel plant in Bangladesh. The discussions are continuing with the
Government of Bangladesh on various issues including supply of gas, lease of
coal blocks and fiscal incentives.
The Company is also exploring the
option of setting up of a steel plant in Iran.
OTHER PROJECTS
The Company has signed the Share
Subscription Agreement and Joint Venture Agreement with
BlueScope Steel Limited, Australia
in November 2005, for manufacture of colour coated coils and pre-engineered
buildings to be used in building solution business. The manufacturing facility
would be set up in Jamshedpur with a production capacity of 2.50 lakhs tpa of
zinc and aluminium coated and 1.50 lakhs tpa of colour coated coils.The
building solution business would have manufacturing facilities at Delhi, Pune
and Chennai.
The Company is setting up a Ferro
Chrome Project at Richards Bay, South Africa to produce 1.20 lakhs tpa of high
carbon ferro chrome. Company has obtained the EnvironmentClearance for the said
project and has also acquired the land at Richards Bay. A subsidiary company in
the name of Tata Steel KZN Pty. Ltd.' has been incorporated in South Africa.
In order to secure raw materials
especially coal in the future, the Company has been evaluating
options to acquire strategic stake
in coal companies in India and overseas. Pursuant to this,
the Company has entered into an
agreement with the AMCI (CQ) Pty. Ltd., Australia to secure upto 20% of the
coal produced by it.
INVESTMENT IN NATSTEEL ASIA PTE. LTD., SINGAPORE
In a significant move to globalise its steel business, the Company
acquired the steel business of NatSteel Limited, Singapore, for an enterprise
value of Singapore $ 486.4 million subject to finalization of the working
capital. NatSteel is a dominant steel producer of Singapore and owns mills in
China, Thailand, Vietnam, the Philippines and Australia. The business is
focused on long products and has a capacity to produce about 1.7 million tonnes
per annum of rebars, wire rods, pre-stressed concrete wires and strands. The
transaction was completed on 15th February, 2005.
FORMATION
OF A NEW SUBSIDIARY COMPANY
Coke is one of the main raw materials in the production of steel. For the
past two years, there has been a worldwide shortage of coking coal and coke, with
a consequent spiraling of prices. Hitherto, a large part of the Company's coke
requirement was met through internal production. With the large increase in
capacity post the modernisation programs under way, the requirement of coke
will increase substantially. To meet a part of this requirement, a subsidiary
company viz. 'Hooghly Metcoke & Power Company Limited' (HMPCL) has been
formed, jointly with the West Bengal Industrial Development Corporation
(WBIDC). The Company holds 98% shareholding in HMPCL. It is setting up a
merchant cokery at Haldia, West Bengal, with a capacity of 800,000 tpa of coke.
It will also generate 55 MW of power, which would be sold to the Company.
SUBSIDIARIES
The gross revenue of the
subsidiaries increased to Rs. 5,545.36 crores (2004-05 : Rs. 1,882.95
crores). Profit after taxes was also higher
at Rs. 232.79 crores (2004-05 : Rs. 120.20 crores).
under the guidance of DuPont Safety
Resources,world-class leader in safety. DuPont has helped to improve the safety
performance of many industries across the globe.
FUTURE PLAN OF ACTION
Improvement in blast furnaces productivity; Improvement in
dephosphorisation during BOF steel making; Production of low ash (<8%) clean
coal; Production of low A12O3 (<1%) & low phos (0.04%) iron ore;
development of advanced high strength automotive steels; Control of shape and
property of AHSS sheets; development of high end wire products; Improvement in
the ferro chrome production process; Improvement in the production of Titania.
ORGANISATION
The
quest for excellence at Tata Steel is not just a process, but a way of life. A
determination to move up the value chain in process, products and performance
has resulted in Tata Steel being acknowledged for its excellence.
CORPORATE GOVERNANCE
The
company believes that good corporate practices enable the board to direct and
control the affairs of a company in an efficient manner and to achieve its
ultimate goal of maximising shareholders value.
VISION 2007
To
seize the opportunities of tomorrow and create a future that will make us an
EVA positive company. To continue to improve the quality of life of our
employees and the communities we serve.
This
is the peg on which our new VISION rests. To Make Tata Steel an EVA Positive
Company.
Know
about Tata Steel's Board of Directors and the Management .
PARTNERSHIP
NatSteel
Asia & Tata Steel - Born to be partners! An unbeatable partnership has been
forged between NatSteel Asia and Tata Steel, Asia's first and India's largest
private sector steel plant.
Tata Steel Acquires Stake in Australian Coal Mines
Jamshedpur, July 18, 2005
Tata
Steel today signed agreements to buy a 5% interest in the Carborough Downs Coal
Project located in Queensland, Australia. Mr. Brian MacDonald, Managing
Director, AMCI Australia Pty Ltd, Dr. T Mukherjee, Dy Managing Director
(Steel), Tata Steel and Mr. A. D. Baijal, Vice President (Raw Materials), Tata
Steel signed the agreements, today, in Jamshedpur.
Tata
Steel has ambitious plans to grow by setting up greenfield plants or acquiring
capacities in India and overseas, which is in keeping with its long term vision
and strategy.
The
Carborough Downs coal project is majority owned and operated by a subsidiary of
AMCI Holdings Australia Pty Ltd. AMCI International AG, the apex holding
company of AMCI Holdings Australia Pty Ltd., is a large global producer,
shipper and trader of high-grade metallurgical coal. Carborough Downs is an
undeveloped underground coking coal project with production scheduled to
commence in year 2006. It is located in Bowen Basin in central Queensland. The
project life is currently estimated to have a life of 14 years and
approximately 58 million tonnes of raw coal is expected to be mined during this
period. There is a further potential resource of 100 Million tonnes of raw coal
in the unexplored areas and deeper seams. The clean coal envisaged to be
produced will be low-ash coking coal and PCI coal, highly suitable for steel
making.
Tata
Steel also signed an offtake agreement for a proportion of the production over
life of the project.
Established
in 1907 by its Founder J N Tata, Tata Steel is one of the flagship companies of
the Tata Group, the most trusted corporate name in India. It has one of the
most modern steel making facilities and is also one of the lowest cost
producers of steel in the world. It currently produces 5 million tonnes of
steel per annum at its Jamshedpur plant and has recently invested in NatSteel
Asia, which has a capacity of about 2 million tonnes per annum of finished
steel. The Company has plans to establish the steel manufacturing units in Iran
and Bangladesh. In India, Tata Steel has also signed Memorandum of
Understandings with the Government of Orissa and Chattisgarh for putting up a
steel plant in each state. The Company has been ranked first (for the second
time) among World Class Steel Companies by World Steel Dynamics based on its
annual listing in June 2005
Tata Steel embarks on the 2 MT expansion program at Jamshedpur
Jamshedpur, July 02, 2005
Tata
Steel’s journey on its 2 MT expansion program has started on 1st July 2005. The
first step has been taken by deciding the order on M/s Outokumpu and L&T,
for setting up a 2 MT iron ore sinter plant. M/s Outokumpu is a technology
leader in this field and has designed 300 such plants across the world
including the existing three sinter plants at Jamshedpur Works. The sintering
process makes iron ore fines suitable for use in iron making in blast furnace.
The
one million tonne expansion program at Jamshedpur is near its completion. Tata
Steel has now initiated a further two million tonne expansion program in line
with its vision of becoming a 15 MT Steel Company by 2010.
AWARDS
Tata Steel’s ITS Department Awarded “BS 15000 Part 1:2002”
Certificate for IT Service Management
Jamshedpur, May 4, 2005
The
Information Technology Service Department (ITS) of Tata Steel has received the
certification for “BS 15000 Part 1: 2002” from STQC IT Certification Services,
Ministry of Communications and Information Technology, Government of India
recently. This certificate has been accredited by the IT SMF (IT Service
Management Forum), which is an internationally recognized independent
organization.
BS15000
is a standard specifically addressing IT Service Management. It comprises of an
integrated set of management processes for effective delivery of IT Services by
an organization to its customers, both internal and external. BS 15000 is
increasingly seen as the quality standard not only for their own benefit but
also to choose suppliers and partner organizations.
ITS,
Tata Steel is the fourth organization in the country to receive this
certificate, others being HP Globalsoft, Wipro Technologies and HCL Comnet. So
far there are 19 organizations in the world that have received this
certification.
The
department had also received this certificate earlier in May 2004 from STQC
after meeting all the requirement of the standard including two stages of
external audits.
Tata Steel Bagged the CII Productivity Award
Jamshedpur, April 29, 2005
Tata
Steel has received 2nd position in the prestigious CII Productivity
Award in the Category 'A' (Large & Medium Scale Member Companies) for
sustained level of high and overall productivity.
The
award was given by CII (Eastern Region) to recognize the member companies who
are making systematic and serious attempts to enhance productivity.
The
trophy was received by Mr. T D Banerjee, Chief, Organization Engineering and
Planning, Tata Steel from the President, CII (Eastern Region) recently at
Kolkata during the CII (Eastern Region) Annual Regional Meeting.
Tata Tiscon Wins Gold at The Calcutta Ad Club Awards
Kolkata, April 16, 2005
Tata
Tiscon - the branded rebar from Tata Steel won the gold for the 'Atoot Jod '
TVC in the Consumer Durables category 2003-04, at the annual Advertising Club
Calcutta, Consumer Connect Awards held in Kolkata.
As
one of the oldest and most prestigious national level awards, the Calcutta Ad
Club Awards attracts entries from India's premier advertising agencies.
The
awards are based on 4 parameters: Consumer Response Index, Assessment of
Advertising Task, Understanding of the Consumer and Creative Solutions. This
year the panel of judges comprised of luminaries like - Santosh Desai of McCann
Erickson, Kiran Khalap of Chlorophyll, Kurush Grant of ITC, Shilloo
Chattopadhyay of TNS Mode and Ram Ray of Response. Pranesh Misra, Prabhakar
Mundkur and Mohan Menon were also part of the panel.
The
awards were presented in 4 categories - FMCG, Consumer Durables, Consumer
Services and Public Services. There were more than 125 entries of which, 5
campaigns were short listed for the gold and silver in each category.
Business :
Generic Names of Principal Products/Services of company (as
per monetary terms) are as under:-
|
Items
Code No. |
Product
Description |
|
72082600 |
Flat Rolled Products of Non Alloy
Steel of a width of 600 mm and more hot rolled coils of thickness 1.6 mm to
12 mm |
|
73045901 |
Tubes/Pipes etc. of circular section
with outer diameter upto 114.3 mm, not cold rolled |
|
72091600 / 72091700 |
Flat Rolled Products of Non Alloy
Steel of a width of 600 mm or more, cold(cold reduced), not clad, plated or
coated of thickness 0.5 mm or more but less than 3 mm |
The company has technical collaboration with :
·
Lurgi, Germany
·
Vesuvius, Italy
·
Saarberg Interplan, Germany
·
MDH, Germany
·
Thyssen, Germany
·
Davy Distington, UK
·
SMS Demag, Germany
·
GHH, Germany
·
Posdata Company Limited, Korea
·
Nachi Fujikoshi, Japan
·
Morgan, USA
·
CMI, Belgium
·
NEDO, Japan
·
Concast, Switzerland
·
Paul Wurth, Luxembourg
The company is in trade terms with :
·
Aeicorp Private Limited
·
ANK Seals Private Limited
·
Ankur Engineering Works
·
Associated Chemical Industries
·
Atlanta Engineering Company
·
B. C. Engineering Company
·
BMC Metalcast Limited
·
Brij Automobile & General
Industries
·
C M Equipments & Instruments
(India) Private Limited
·
Darshanlal & Company
·
Duro Engineering Complex
·
Electro Chemicals
·
Electromag Methods
·
Empire Industries
·
Fibre Foils Limited
·
Fouress Engineering (India) Limited
·
Gajanand Udhyog
·
General Engineering Company
·
Globe Engineering Works
·
Golchha Chemicals Industries
·
Govind Engineering Works
·
H. D. Enterprises
·
Hydrokrimp A. C. (Private) Limited
·
Indian Forging & Stamping Company
·
Jolly Industries
·
Leo Plasts & Synthetic Moulders
·
Lubcon Universal Private Limited
·
M. K. Industries
·
M.S.P. India Private Limited
·
Mahato & Company
·
Mallabhum Polypacks (Private) Limited
·
Mayur Offset Private Limited
·
Mim Plastics
·
Minar Hydro System (Private) Limited
·
Mona Engineering
·
National Automotive Components
·
National Engineering Private Limited
·
Neepaz Tubes (Private) Limited
·
Precision Engineering Concern
·
S. G. Metal Industries
·
Sandeep Polymers
·
Sardul Auto Works (Private) Limited
·
Shree Purohit Engineering Works
·
Singhbhum Refractory
·
Sokhi Engineering Company Private
Limited
·
Sosun Engineering Company
·
Spare Age (India) Private Limited
·
Superintendence Company of India
(Private) Limited
·
Tatanagar Engineering & M/C
·
Techno Enterprise
·
United Industries
·
Vijay Industrial Equipment Company
·
Vinayas Enterprises
·
West Bengal Engineering Works
·
Aeicorp Private Limited
·
India Mills Stores Supply
·
New Allenbery Works
·
Sundaram Industries Limited
·
Unique Engineers
·
Associated Engineering Company
·
Hindustan Rubber Product
·
MIM packs
·
S. N. Chatterjee & Company
The company’s fixed assets of important value include land
& roads, buildings, leaseholds, railway sidings, plant & machinery,
furniture, fixtures and office equipments, development of property, livestock
and vehicles.
PRESS RELEASES :
Tata
Steel to set up operations in Iran
Plans to
partner with local company in multiple projects
Jamshedpur,
June 12, 2005
Asia’s first and India’s largest integrated private sector
steel company, Tata Steel today signed a Joint Venture Agreement (JVA) with
Iranian Mines and Mining Industries Development and Renovation Organisation
(IMIDRO) to join them in their proposed steel-making projects and mining
operations in Iran. Mr. M Moazenzadeh, Chairman of IMIDRO, Mr. B Muthuraman,
Managing Director of Tata Steel today signed the agreements in a ceremony at
the IMIDRO office in Tehran.
Tata Steel would partner them in establishing a 1.5 mtpa
(million tonnes per annum) steel slab making facility, a 1.5 mtpa of steel
billet making capacity, a separate 3 mtpa export oriented steel plant and in
exploration & mining of unexplored iron ore mines.
Tata Steel would partner IMIDRO in the ongoing Hormozgan
Steel project, which would establish steel-making operations in the Persian
Gulf Special Economic Zone (PGSEZ) at the port city of Bandar Abbas. The first
phase of this gas based steel project would establish a 1.5 mtpa steel slab
making facility, which would be followed by the second phase to establish 1.5
mtpa of steel billet making capacity.
In a separate venture, Tata Steel would partner with IMIDRO
in exploration and mining of unexplored iron ore mines at the Gol-e-Gohar mines
in Kerman province of Iran and would establish a gas based pellet plant at
Gol-e-Gohar using this iron ore.
IMIDRO and Tata Steel also signed a MoU expressing Tata
Steel’s intent to establish a separate 3-mtpa export oriented steel plant in
two modules of 1.5 mtpa each at PGSEZ in Bandar Abbas in the vicinity of the
Hormozgan steel plant.
Mr. B. Muthuraman Managing Director, Tata Steel said, “Iran
with its rich steel making inputs and quality infrastructure can become one of
the favourable steel making locations. Tata Steel has, after due consideration
and evaluation, decided to move ahead with its proposed projects in Iran. Owing
to favourable factors in terms of production, the envisaged steelplants would
emerge to be amongst the lowest cost producers of steel in the world. Tata
Steel will bring to this project the same work philosophy, culture, efficiency
and ethics, for which it is renowned world over for nearly 100 years and is
recognised as one of the most efficient steel producers in the world.”
Established in 1907 by its Founder J N Tata, Tata Steel is
the flagship of Tata Group, the most trusted corporate name in India. It has
one of the most modern steel making facilities and is also one of the lowest
cost producers of steel in the world. Tata Steel is focused on the
sophisticated automobile and the construction sector. It currently produces 5
million tonnes of steel per annum at its Jamshedpur plant and has recently
invested in NatSteel Asia, which has a capacity of about 2 million tonnes per
annum of finished steel. It has set benchmarks in corporate social
responsibility and corporate governance, it believes in improving the quality
of life of its employees and the communities it serves.
Tata
Steel to set up a Greenfield Integrated Steel Plant in Chhattisgarh
Raipur,
June 4 2005
Asia’s first and India’s largest integrated private sector
steel company, Tata Steel today signed a Memorandum of Understanding (MoU) for
setting up a 5 million tonnes per annum greenfield integrated steel plant in
the Bastar region of Chhattisgarh. The MoU was signed by Mr. Shivraj Singh,
Principal Secretary (Industries and Mineral Resources Department) on behalf of
Government of Chhattisgarh and by Mr. B. Muthuraman, Managing Director, Tata
Steel, in a ceremony at Raipur, in the presence of the Chief Minister of
Chhattisgarh, Dr. Raman Singh and other important government dignitaries and
top officials from Tata Steel.
According to the MoU, the integrated steel plant will have
an ultimate capacity of 5 million tonnes per annum of steel with 2 million
tonnes per annum in first phase. The first phase of the steel plant is likely
to be setup within 48 months to 60 months from the date of obtaining all
statutory clearances. The project also includes development of captive iron ore
mines to meet the iron ore requirements of this plant. The project is expected
to generate employment potential, both direct and indirect, for large number of
people.
Mr. Muthuraman said, “Tata Steel will bring to this plant
the same work philosophy, culture, efficiency and ethics, for which it is
renowned world over for nearly 100 years. We will use environment friendly
means for development of the captive iron ore mines, steel plant and its
surroundings. Our immediate task is to obtain all statutory clearances, with
the help of the State Government, as fast as possible and start the work. In
order to complete the construction of such a large steel plant, we are
immediately putting in place a project team at Raipur.”
Dr. T Mukherjee, Deputy Managing Director (Steel), Tata
Steel said “The integrated steel plant will focus on the fast growing long
products segment. A detailed feasibility would commence immediately to decide
on the optimum technology and the exact location of the plant.”The investment
by Tata Steel, combined with the able leadership and efficient administration
of the State, would provide the right environment for the speedier industrial
development of the State and will bring better quality of life to its people.
Established
in 1907 by its Founder J N Tata, Tata Steel is the flagship of Tata Group, the
most trusted corporate name in the country. It has one of the most modern steel
making facilities and is also one of the lowest cost producers of steel in the
world. It currently produces 5 million tonnes of steel per annum at its
Jamshedpur plant and has recently invested in NatSteel Asia , which has a
capacity of about 2 million tonnes per annum of finished steel. The steel
company is focussed on the sophisticated automobile and the construction
sector. A benchmark in corporate social responsibility and corporate
governance, it believes in improving the quality of life of its employees and
the communities it serves.
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 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.44.25 |
|
UK Pound |
1 |
Rs.87.30 |
|
Euro |
1 |
Rs.57.36 |
SCORE
& RATING EXPLANATIONS
|
SCORE
FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
8 |
|
OPERATING SCALE |
1~10 |
8 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
8 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
8 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT LINES |
1~10 |
8 |
|
--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 |
|
71 |
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 |