MIRA
INFORM REPORT
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Report Date : |
14.09.2007 |
IDENTIFICATION DETAILS
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Name : |
RASHTRIYA ISPAT
NIGAM LIMITED |
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Registered Office : |
Block A,
Administrative Building, Vishakhapatnam Steel Plant, |
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Country : |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
18.02.1982 |
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Com. Reg. No.: |
01-3404 |
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CIN No.: [Company
Identification No.] |
U27109AP1982GOI003404 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
VPNR00283D /
VPNR00392A |
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Legal Form : |
Public Limited
Liability Company The company’s
entire capital is held by Government of India |
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Line of Business : |
Manufacturing and
Marketing of steel products |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Maximum Credit Limit : |
USD 320000000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Usually Correct |
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Litigation : |
Clear |
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Comments : |
Subject is a
Government of India company having mediocre performance. Available information
indicates high financial responsibility of the company since it is a
Government of India company. Trade relations are fair. Financial position is
improving. The company has substantial accumulated losses but are expected to
be wiped out, soon due to steel sector doing well. Payments are usually
correct and as per commitments. The company can
be considered good for normal business dealings at usual trade terms and
conditions. Lenders and
Creditors can fell confidence of Government of India’s exposure to the
company. |
LOCATIONS
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Registered
Office : |
Block A,
Administrative Building, Vishakhapatnam Steel Plant, Vishakhapatnam – 530
031, |
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Tel. No.: |
91-891-2518325 /
538 / 2888360 / 390 / 2888247 / 2518360 |
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Fax No.: |
91-891-2518753 /
756 / 2888316 /2518321 |
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E-Mail : |
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Website |
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Area: |
22685 sq. m. |
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Location: |
Owned |
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Regional
Office : |
1, |
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Regional
Office : |
101, Free Press
House, Nariman Point, Mumbai - 400 021, |
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Regional
Office : |
184, Anna Salai,
Chennai - 600 006, |
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Regional
Office : |
15, 110 066, |
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Factory 1 : |
Vishakhapatnam, District
Vishakhapatnam, |
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Factory 2 : |
Jaggayyapeta,
District Krishna, |
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Factory 3 : |
Madharam,
District Khamman, |
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Guest House: |
1, |
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Tel. No.: |
91-33-2242 2856 /
2242 1968 / 2334 4034 (Res.) |
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Fax No.: |
91-33-2242 7896 |
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Guest House: |
Khanji Bhavan,
10-3-311/A, Masab Tank, Ground Floor, |
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Tel. No.: |
91-40-2353 5167 /
6267 / 2406 9207 (Res.) |
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Fax No.: |
91-40-2353 2167 |
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Northern
Region : |
Ř
6TH Floor, Ř
Block No.38/4-B, F-10 & 11, Near
Punjab & Sind Bank, Friends Centre, Sanjay Place, AGRA - 282 002 Ř
117/L/452,Channi House, 1 st
Floor,Naveen Nagar, Near Double Pullia, Ř
S.C.O.No.141-142, 2nd Floor, Sector
8-C, Ř
SCO-3, 1st Floor, HUDA
Complex,Sec-19, Ř
B-5, RDC, Ř
Ř
Master Chambers, 5th Floor, 19, Firoz
Gandhi Market, Ř
33/20,Ganapati Kunj, |
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Eastern
Region: |
Ř
1, Ř
IPICOL House, Ř
West Boring |
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Western
Region: |
Ř
101, Free Press House, Free Ř
NBCC Hours, 1st Floor, Near Ř
107-109, Ř
3025/8, Shreenidhi Chambers, 1st
Floor, Senapati Bapat Marg, PUNE - 411 016 Ř
317, |
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Southern
Region: |
Ř
Ř
303, 3rd Floor, Ř
Ř
Ř
457/1B1, Deshpande Nagar, Hubli - 580
029 |
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Andhra Region:
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Ř
10-3-311/a,
Khanij Bhavan, Ř
D-Block, Project Office Complex,
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Ř
D-Block,
Project Office , |
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Ř
Marketing
Department |
DIRECTORS
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Name : |
Mr. Y. Siva Sagar Rao |
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Designation : |
Chairman cum Managing Director |
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Address : |
Steel House, D-3, Directors, Bungalow, sector-7 |
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Qualification
: |
BE |
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Name : |
Mr. P K Bishnoi |
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Designation : |
Director - Finance |
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Address : |
Bungalow No 2, sector – 7, Ukkunagaram |
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Qualification
: |
BE, MBA |
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Name : |
Mr. K A Naidu |
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Designation : |
Director |
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Address : |
D-1, Directors Banglow Sector – 6, Ukkunagaram |
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Qualification
: |
BE, PG Dim |
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Name : |
Mr. P. K. Misra |
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Designation : |
Director |
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Name : |
Mr. H S Chhatwal |
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Designation : |
Director |
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Address : |
6, Directors Bunglow, sector-7 |
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Qualification
: |
B. Sc. (Mech) |
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Name : |
Mr. P. K. Misra |
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Designation : |
Director – Operations |
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Date of Appointment : |
01.08.2006 |
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Name : |
Mr. A K Rath, IAS |
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Designation : |
Director – Min. of Steel and Director |
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Address : |
AS & FA, Ministry of Steel, Udypg Bhavan New Delhi-110011 |
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Qualification
: |
M. Sc. Physics. |
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Name : |
Mr. G. Elias |
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Designation : |
Jt. Secy, Min. of Steel and Director |
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Date of Appointment : |
13.04.2006 |
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Name : |
Mr. R.S.S.L.N. Bhaskarudu |
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Designation : |
Director |
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Name : |
Dr. V.K. Bhalla |
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Designation : |
Director |
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Date of Appointment : |
29.06.2006 |
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Name : |
Mr. J S. Mathur |
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Designation : |
Director |
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Date of Appointment : |
11.07.2006 |
KEY EXECUTIVES
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Name : |
Mr. P. Mohan Rao |
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Designation : |
Company Secretary |
BUSINESS DETAILS
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Line of Business : |
Manufacturing and
Marketing of steel products |
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Products : |
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Brand Names : |
Rabars: Vizar TMT Strycturals:
Vizag Ukku |
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Agencies Held : |
Sold through own
Branches |
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Exports : |
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Countries : |
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Imports : |
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Countries : |
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Terms : |
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Selling : |
L/C, Cash, Credit
(30 days) |
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Purchasing : |
L/c, Credit |
PRODUCTION STATUS
|
Particulars |
Unit |
Installed
Capacity |
Actual
Production |
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Wire Rods |
Tonnes in ‘000s |
850 |
1043 |
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Light & Medium
Merchant Products-Bar Mill |
Tonnes in ‘000s |
710 |
873 |
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Saleable Billets |
Tonnes in ‘000s |
246 |
110 |
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Medium Merchant
Structural Mill |
Tonnes in ‘000s |
850 |
1058 |
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Pig Iron |
Tonnes in ‘000s |
556 |
439 |
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Granulated Slag |
Tonnes in ‘000s |
1440 |
1578 |
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Coke Ovens
By-products |
Tonnes in ‘000s |
186 |
152 |
GENERAL INFORMATION
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No. of Employees : |
16610 |
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Bankers : |
·
State
Bank of ·
Andhra
Bank, Vishakhapatnam, ·
Bank
of ·
Canara
Bank ·
UCO
Bank ·
Central
Bank Of ·
Dena
Bank ·
·
Oriental
Bank of Commerce ·
State
Bank of ·
State
Bank of Saurashtra ·
State
Bank of ·
Indian
Overseas Bank ·
Indian
Bank ·
HSBC
Bank ·
IDBI
Bank ·
Allahabad
Bank |
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Facilities : |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
Rao and Kumar Chartered Accountants |
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Address : |
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Associates/Subsidiaries : |
All Government of
India Undertaking Companies |
CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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48900000 |
Equity shares |
Rs. 1000/- each |
Rs. 48900.000 millions |
|
31100000 |
Preference Shares |
Rs. 1000/- each |
Rs. 31100.000 millions |
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Total |
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Rs. 80000
Millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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48898462 |
Equity shares |
Rs. 1000/- each |
Rs. 48898.462 millions |
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29374700 |
Cumulative
Redeemable preference shares |
Rs. 1000/- each |
Rs. 29374.700 millions |
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Total |
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Rs. 78273.162 Millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES
OF FUNDS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
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SHAREHOLDERS
FUNDS |
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1] Share Capital |
78273.200 |
78273.162 |
78273.162 |
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2] Share Application
Money |
0.000 |
0.000 |
0.000 |
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3] Reserves &
Surplus |
3463.800 |
0.000 |
0.000 |
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4] (Accumulated
Losses) |
0.000 |
(9059.934) |
(29140.872) |
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NETWORTH
|
81737.000 |
69213.228 |
49132.290 |
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LOAN FUNDS |
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1] Secured Loans |
881.500 |
889.403 |
371.706 |
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2] Unsecured
Loans |
3694.400 |
0.000 |
0.000 |
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TOTAL BORROWING
|
4575.900 |
889.403 |
371.706 |
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DEFERRED TAX
LIABILITIES |
3167.200 |
1584.950 |
0.000 |
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TOTAL
|
89480.100 |
71687.576 |
49503.996 |
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APPLICATION OF FUNDS
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FIXED ASSETS [Net Block]
|
20782.600 |
24413.075 |
33721.268 |
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Capital work-in-progress
|
1807.300 |
610.707 |
254.838 |
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Held for disposal
|
0.100 |
0.000 |
0.003 |
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DEFERREX TAX ASSETS
|
0.000 |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS &
ADVANCES
|
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Inventories
|
12164.500 |
12553.098 |
7063.436 |
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Sundry Debtors
|
1656.500 |
493.006 |
856.155 |
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Cash & Bank Balances
|
56217.000 |
39326.086 |
13597.127 |
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Other Current Assets
|
1843.600 |
1001.795 |
0.000 |
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Loans & Advances
|
10638.400 |
7101.225 |
5750.174 |
Total Current Assets
|
82520.000 |
60475.210 |
27266.892 |
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Less :
CURRENT LIABILITIES & PROVISIONS
|
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Current Liabilities
|
8714.900 |
11548.843 |
10788.384 |
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Provisions
|
7163.700 |
2692.723 |
1565.127 |
Total Current Liabilities
|
15878.600
|
14241.566
|
12353.511
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Net Current Assets
|
66641.400 |
46233.644 |
14913.381 |
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MISCELLANEOUS EXPENSES
|
248.700 |
430.150 |
614.506 |
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TOTAL
|
89480.100 |
71687.576 |
49503.996 |
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PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
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Sales Turnover |
73057.100 |
73598.400 |
56123.395 |
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Other Income |
4558.800 |
2863.100 |
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Total Income |
77615.900 |
76461.500 |
56123.395 |
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Profit/(Loss) Before Tax |
18895.100 |
22537.600 |
15471.883 |
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Provision for Taxation |
6371.400 |
2456.700 |
0.000 |
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Profit/(Loss) After Tax |
12523.700 |
20080.900 |
15471.883 |
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Earnings in Foreign Currency : |
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Export Earnings |
4426.500 |
2492.200 |
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Other Earnings |
8.700 |
100.500 |
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Total Earnings |
4435.200 |
2592.700 |
7681.652 |
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Imports : |
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Raw Materials |
17349.300 |
16924.100 |
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Stores & Spares |
370.400 |
410.300 |
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Capital Goods |
0.000 |
15.000 |
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Total Imports |
17719.700 |
17349.400 |
9811.008 |
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Expenditures : |
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Raw Materials |
35601.400
|
29954.100
|
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Excise Duty |
11524.600
|
8939.600
|
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Power & Fuel Cost |
2610.200
|
2260.300
|
|
|
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Other Manufacturing Expenses |
5318.700
|
4917.300
|
41668.946 |
|
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Employee Cost |
5765.800
|
4895.800
|
|
|
|
Selling and Administration
Expenses |
4045.600
|
3726.700
|
|
|
|
Miscellaneous Expenses |
626.900
|
587.500
|
|
|
|
Interest & Financial Charges
|
327.500
|
145.300
|
|
|
|
Depreciation |
4155.700
|
9830.600
|
|
|
Total Expenditure |
69,976.400 |
65,257.200 |
41668.946 |
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KEY RATIOS
|
PARTICULARS |
|
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
PAT / Total Income |
(%) |
16.14
|
26.26
|
27.57 |
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|
Net Profit Margin (PBT/Sales) |
(%) |
25.86
|
30.62
|
27.57 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
18.29
|
26.55
|
25.37 |
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Return on Investment (ROI) (PBT/Networth) |
|
0.23
|
0.33
|
0.31 |
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Debt Equity Ratio (Total Liability/Networth) |
|
0.25
|
0.22 |
0.26 |
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|
Current Ratio (Current Asset/Current Liability) |
|
5.20
|
4.25 |
2.21 |
LOCAL AGENCY FURTHER INFORMATION
HISTORY
The company was incorporated on 18th February 1982 at
A new company viz. Rashtriya Ispat Nigam Limited (RINL) was incorporated
in the year 1982 and Visakhapatnam Steel Project was separated out from Steel
Authority of India Limited and put under RINL. Project construction was
commenced on 2nd February 1982, which was considered as the Zero
date. The last unit of the plant was
commissioned in July 1992 and the plant dedicated to the Nation on 1st
August 1992 by the then Prime Minister.
The company's Vishakhapatnam Steel Plant, the most modern integrated steel
plant has capacity to produce 3 million tonnes of liquid steel and 560000
tonnes of pig iron.
2005-06
: AN YEAR OF SUSTAINED GROWTH
The year 2005-06 has been a significant one for the Steel industry in general
with the world steel production registering a 6% growth. On the domestic front,
the industry has grown by over 16%, a remarkable achievement indeed. This only
supports the growth anticipated in the National Steel Policy symbolizing robust
economic growth. During the year, RINL on its part achieved a capacity
utilization of 120% of its rated capacity and registered a 2% growth in
Saleable Steel production. The total sales turnover has improved by 3.68%.
Majority of the Units have achieved a rare distinction of highest ever
production since inception. The turnover touched an all time high since
inception. The year shall also be reckoned as a landmark and memorable one for
RINL, because it could secure the final approval /clearance of the Government
of India in a record time of 10 months for its Expansion Project from 3Mt to
6.3 Mt of Liquid Steel i.e. almost doubling its rated capacities thus paving
way for a sustainable growth path in coming years as well.
FINANCIAL REVIEW
The Financial year 2005-06 was an eventful year for RINL. It has created Record
Turnover of over Rs. 84820 Millions. For the fifth consecutive year it earned
Net Profit and for the year it is Rs. 12520 Millions after taxes. This is apart
from payment of (a) Income Tax of Rs. 5000 Millions towards Corporate Tax, (b)
over Rs. 10000 Millions towards Excise Duty and (c) over Rs. 2500 Millions by
way of Sales Tax to different State Governments. With the current year's net
profit, all the accumulated losses of the company since its inception have been
fully wiped out. With this, RINL became a real profit making company and it
has, therefore, been classified as a MINIRATNA CATEGORY-I PSE by Govt. of India
vide Ministry of Steel's letter No.1(9)2004-VSP dated 25th May, 2006. It is
indeed a great journey from a time when the company has reported to BIFR its
erosion of Net Worth and now conferred with MINIRATNA status.
The Company was conferred National Award for Excellency in Cost Reduction
instituted by the Institute of Cost and Works Accountants of India (ICWAI) for
the year 2005 in recognition of its efforts for effective implementation of
Cost and Management Accounting tools, quality of cost accounting, optimum
utilization of resources, waste management, etc. by the Ministry of Company
Affairs, Government of India. This is one more feather in the cap of RINL. The
Finance and Accounts Department of the Company secured the ISO 9001
Certificate, which is unique in Public Sector Steel Plants in the
Country.
SALES
AND MARKETING REVIEW
Marketing Performance during April 2005 - March 2006
As against the MOU target of Rs. 87930 Millions for the year 2005-06, VSP
achieved a sales realisation of Rs. 84820 Millions, thus registering a
fulfilment of 96% and a growth of 4% over the sales turnover of Rs. 81810
Millions in 2004-05. The Sales turn over of Rs.84820 Millions of 2005-06 were
the best ever since inception. And this could be possible against the backdrop
of sluggish market conditions right throughout the year which has brought price
line under tremendous pressure for any year. Domestic sales turnover of Rs.
80400 Millions in 2005-06 was also the best ever till date.
The revenue generation increased with higher sales
realization value as well as the increased sale of value added products.
Total sales in Steel volume during 2005-06 registered record sales of 3.3
million tons (since inception) with a 6% growth over previous year. Domestic
steel volume of 3.10 million tons recording a growth of 1% over 2004-05 (3.06
million tons).
To further strengthen the Exports, 2.02 lakh tonnes of steel was exported
during the year to the countries viz. Bangladesh, Myanmar, Nepal, Sri Lanka,
Thailand and USA being our strategic markets, compared to 0.56 lakh tons last
year.
Sales of By-Products during the year was Rs 1500 Millions registering a growth
of 5% over 2004-05 (Rs. 1420 Millions). This includes exports of 0.695 Millions
tons of Blast furnace slag to
Pig iron recorded sales of 0.307 Millions tons in Domestic market during
2005-06 with a growth of 156% over 2004-05 (0.120 Millions tons).
The focus during the year was on the development of actual user base in
domestic market. Around 60% of the steel was supplied to the actual user
segment in 2005-06.
As a step towards increasing customer satisfaction levels, settlement of
customer quality complaints through e-system has been developed and implemented
on VSP's intranet. This will eliminate delay in processing of quality
complaints and provide an efficient mechanism for settlement of quality
complaints.
ACQUISITION
OF COAL MINES IN
Government of
'Expression of interest for acquisition of Hard Coking Coal Mines abroad' was
placed in VSP's website. Responses from
SMS LIMESTONE JOINT VENTURES
RINL received proposals and samples from different agencies of
SAFETY, ENVIRONMENT & HEALTH CARE
:
Safety
Visakhapatnam Steel Plant is the first integrated steel plant to be certified
for 'Occupational Health & Safety Management System' as per British
Standards Institute specification in the year 2002 and re-certified again in
the year 2005. Two Surveillance Audits were conducted in the year 2005-06.
Continuous efforts in implementation of safety standards, monitoring of hazards
in the activities had helped in achieving a 10.67% reduction of reportable
accidents.
HIGHLIGHTS AND ACHIEVEMENTS :
- 'Zero Accident' was achieved in 17 departments viz. ACVS, CED, CSD, Canteens,
EnMD, ETL, L&H, OHSRC, PPM, PEM, PD, RMD, StED, Systems, TELECOM, TS, and
T&DC.
- 10.67% reduction of Reportable accidents was achieved during the year
2005-06.
- First and Second Surveillance Audits of OHSAS- 18001 were successfully
completed and well appreciated by the external auditors.
- Internal Safety Audits were conducted in respect of 16 departments.
- Two plant level Mock Drills were conducted to check the
emergency preparedness and response of various agencies.
- National Safety Day was celebrated on 4th March, 2006 and in that connection
various competitions such as Quiz, Essay, Debate, Poster etc. were conducted.
Safety Playlet and First Aid Competitions were also held.
- Inter-departmental Safety Performance and House Keeping Competitions were
conducted.
VSP won the Leadership and Excellence Award for the efforts in Safety, Health
and Environment in the competition organized by CII, Southern Region.
OTHER IMPORTANT ACTIVITIES
- VSP imparted refresher Safety Training to about 5000 regular employees and
Safety Induction training and Job Specific Training was given to all contractor
employees.
- Control Measures for Hazard Identification and Risk Assessment were
implemented and monitored.
Measurable targets were set in respect of Safety and Occupational Health for
each department and corresponding management programs had been prepared and
monitored for achieving the objectives.
On site emergency
plan and Safety Report were updated.
- One training Program was organized for the Central Safety Committee members,
including a plant visit to NTPC Simhadri. Departmental Safety Committee
meetings were held in every month in various departments.
MAJOR
ENVIRONMENTAL PROJECTS UNDER IMPLEMENTATION
All statutory requirements are fulfilled and over a dozen projects to improve
the environmental standards further in VSP are under implementation at an
estimated cost of over Rs.2630 Millions. This is an enough evidence on the part
of VSP that it giving priority to people before profits.
WELFARE
ACTIVITIES
A) Welfare of SCs & STs:
a) Three parks in the
b) Jayanthi Celebrations of Dr. Babu Jagjeevan Ram and Bharat Ratna Dr. B R
Ambedkar were observed by garlanding functions followed by commemoration
meetings, which were organized at Babu Jagjeevan Ram Children's Park, Sector-5
on 05.04.2005 and at Dr. Ambedkar Park, Sector-6 on 14.04.2005
respectively.
c) A Sports and Cultural Festival was organized during the month of April 2005
at CWC, Ukkunagaram in connection with Bharat Ratna Dr. B R Ambedkar Jayanthi
Celebrations.
d) In connection with Vardhanthi Ceremony of Bharat Ratna Dr. B R Ambedkar,
Garlanding Function was organized on 06.12.2005 at Dr. Ambedkar Park, Sector-6.
e) RINL/VSP has increased the number of Scholarships from 3 Nos. to 6 Nos. per
year exclusively for the children of SC/ST employees from the academic year
2005-06. Under this Scholarship Scheme, 2 Scholarships of Rs.1,500/ - (Rupees
One Thousand and Five Hundred only) per month and 2 Scholarships of Rs.750/-
(Rupees seven hundred and (Fifty only) per month and 2 Scholarships of Rs.400/-
(Rupees four hundred only) per month will be awarded to the meritorious
students among SC/STs every year.
f) Besides, since the year 1991, coinciding with the Birth Centenary
Celebrations of Bharat Ratna Dr. B R Ambedkar, Annual Merit Cash Awards for
students belonging to SC/ST communities were introduced. Based on the pass
results of the Xth/SSC Examination held during March 2005, 10 nos. of Cash
Merit Awards of Rs.500/- (Rupees five hundred only) each and 9 nos. of Rs.250/-
(Rupees two hundred and fifty only) each were given to the 1st and 2nd rank
students of SC/ST communities respectively, from each of the schools of
VSP.
B) General :
a) RINL/VSP has increased the number of Scholarships from 11 Nos. to 30 Nos.
and also enhanced the scholarship amount for the children of VSP employees from
the academic year 2005-06 under 3 categories of its Scholarship Schemes i.e.
General, SC/ST and Physically Handicapped.
b) RINL/VSP has introduced the new schemes for grant of Dr. Sarvepalli
Radhakrishnan Merit Cash Awards @ Rs. 5,000/- each (one time) for the children
of VSP employees who secure admission and join IITs, IIMs and IISc or ISI
courses. Also Col. C K Nayudu Sports Cash Awards @ Rs. 5,000/- each (one time)
for the children, who have represented the country in any event or who has won
1st place in the Nationals conducted by respective Federations of India, or National
School Games and Sports conducted by School Games Federation of India or Ranji
or Inter-State Cricket Matches conducted by BCCI. These Cash Award schemes have
been implemented from the academic year 2005-06.
c) 435 cases have been covered upto 2005-06 under Employees Family Benefit
Scheme extending Monthly Benefit to the dependents of the deceased
employees/Medically Unfit cases.
4 INDUSTRIAL RELATIONS :
The overall IR situation at RINL/VSP during the year 2005-06 was peaceful and
helped in sustaining the targeted levels of production. Despite of hectic
activities on account of Union Elections, the Employees' Unions demand on work
related issues, various agitational activities by Regular and Contract Labour
unions, normal and safe levels of production could be maintained due to
proactive & preventive IR measures adopted by Personnel Department and
maintenance of harmonious Industrial Relations.
I. SETTLEMENTS :
a) Night Shift Allowance :
Record Notes of discussion was signed on 20.09.2005 between the representatives
of Management and Visakha Steel Employees Congress (INTUC)-Recognised Union on
the revision of 'Night Shift Allowance' to both Executives & Non-Executives
employees w.e.f. 01-01-2005.
b) MoU on Bonus/Ex-gratia
Following the persistent demand for payment of Bonus/Exgratia by the Unions, a
Memorandum of Understanding on payment of Adhoc Advance to all eligible
employees under Annual Performance Linked Reward Scheme (APLRS) was signed on
08.10.2005 with the representatives of Regd. Trade Unions.
PROJECT
MANAGEMENT
Expansion of the Plant to 6.3Mt :
Keeping in view the upturn in global and domestic steel demand, VSP has decided
to increase its capacity to 6.3 Mt of liquid steel per year in the beginning
and to increase the capacity upto 10 Mt per year in future phases. M/s MN
Dastur Co, the Consultants engaged for preparation of Project Report for
Expansion of VSP submitted the Report for Expansion of Plant to 6.5 Mt of hot
metal and 6.3 Mtpa of liquid steel. The product mix is long products such as
wire rods in coils 5.5 mm to 20 mm dia, special bars of size 16mm to 40 mm dia
in coil and straight length and light & structural to meet the
infrastructure needs which are very well accepted in the market. In addition,
Seamless Pipe Mill of 300,000 tpa capacity to produce seamless pipes of higher
dia is planned which will be first of its kind in
The salient features of the Expansion are as follows:
Capital cost :
Rs. 86920 Millions (Base: II Quarter 2005)
Construction schedule :
Stage-I - 36 months from 'Date of approval by GOI'
Stage-II - 48 months from 'Date of approval by GOI'
GOI approved the project on 28th October 2005 at an estimated cost of Rs.8692
Millions. Preparation of specifications and tender documents are under
progress. Some preliminary works such as roads, box culvert and lighting etc.
have already been ordered and work is under progress. An amount of Rs.66.900
Millions has been spent upto 31.03.06.
COKE OVEN
Government of
COKE OVEN
Projects for construction of By Product Plant and Additional facilities on coal
side have been approved by the Board of Directors in June, 2006 at an estimated
cost of Rs.1093.900 Millions and Rs.888.300 Millions with a completion period
of 27 months and 24 months respectively.
PULVARISED COAL INJECTION SYSTEM
Proposals for installation of Pulvarised Coal Injection system in Blast
Furnaces No.1 & 2 has since been approved by the Board in July, 2006. The
pulverized scheme enhances the capacity of hot metal production in BF-1 &
2. The salient features of the scheme are as follows:
Capital cost :
Rs. 1810 Millions (Base: IV Quarter 2004)
Construction schedule :
15 months from the date of GOI approval
CORPORATE STRATEGIC MANAGEMENT
1 MOU 2005-06
Secretary, Ministry of Steel, GoI, and CMD, RINL signed MOU on 28.3.2005 for
achieving the set physical and fiscal targets for the year 2005-06. As per the
performance evaluation based on provisional data, the company achieved a
composite score of 1.37, which corresponds to Excellent rating for the
year.
|
a) Contingent
liabilities not provided for: |
|
|
Contractors/ Suppliers/ customers |
646.500 |
|
Local Authorities - State Govt. |
22.000 |
|
Sales Tax matters |
|
|
Customs/ Excise duty |
|
|
R&DCess |
131.800 |
b) Claims in Courts in connection with Land Acquisition: — Amount not
ascertainable.
c) Liability towards reimbursement of excise duty on structural works
wherever applicable. — Amount not ascertainable.
FIXED
ASSETS
Plant and Machinery
Furniture and Fixture
Electrical Installations
Land
Railway lines and
Sidings
Buildings
Vehicles
Water Supply and Sewerage Systems
TRADE REFERENCE
:
Steel Exchange
India Limited
Suresh KR (Managing
Director)
103 Vizag profiles
Tower, kurmannapalem, VSp-46
Phone: 91-2587175
Narayan Steel
Private Limited
Sunil Chodhary
(Director)
31-15-138
20, 2nd
Floor, Dabagardens, VSp-20
Phone : 2587470,
91-891-3295548/49
Sarita Steel and
Indus Limited
S Ramesh, Rajiv
Nagar,
Phone : 2587407
Business:
The company is
engaged in manufacturing and marketing of steel products mainly structurals and
coal chemicals as well as by products including hot metal, pig iron, liquid
steel, billets, wire rod, bar products and MMSM Products.
The company's
product mix comprises pig iron, wire rods, plain and deformed bars, light and
heavy structurals, rounds, squares, billets, blooms, etc. For the first time in
the country, a new generation high strength Ribbed Re-inforced Bars, having low
Carbon content and fully killed steel are being manufactured at VSP.
The company is popularly known as Vizag Steel. It is the
largest producer and exporter of iron and steel products.
Products
VSP's Product Mix comprises Wire Rods, Bars, Angles,
Channels, Beams, Rounds and Billets. The Plant also produces Pig Iron,
Granulated Slag and Coal Chemicals. The rolled products find extensive
usage in the Construction, Infrastructure, Railways, Power, Oil, defense,
Transport and
Out of the wide range of VSP's products a special mention about the Rebars.
Rebars : For the first time in the country, a new generation high
strength Ribbed Re-inforced Bars, having low Carbon content and fully killed
steel are being manufactured at VSP. The Rebars are manufactured rigid size
tolerance, have uniformity of sections and high strength with extremely good
bendability, weldability and ductility properties. The Rebars are manufactured
using the latest Thermo-mechanical treatment, namely the Tempcore Process. This
results in superior corrosion resistant properties.
- Retention of strength at higher
temperatures.
- Universal use for concrete structures
- Saving of 15% in steel consumption
compared cold twisted Bars.
For improving
the production and capacity utilisation following measures had been taken:
·
Introduction
of slag splashing system in LD converters of Steel Melting Shop
Commissioning of Gega-cutting Machine in
continuous casting shop
·
Introduction
of oil firing system in billet mill
·
Major
repairs in coke oven batteries
·
Increasing
production of value added products
·
Improvement
in technological discipline for improving converter lining life
·
Improving
the rolling hours in mills
Production facilities:
·
Coke
Ovens & Coal Chemical Plant
·
Sinter
Plant
·
Blast
Furnace
·
Steel
Melt Shop and Continuous Casting
·
Rolling
Mills
Coke Ovens & Coal Chemical Plant:
Coking coal after
selective crushing and proper blending is subjected to destructive
deistillation in the Coke ovens. The
plant has 3 batteries of 7 mtr. tall ovens with each battery consisting of 67
ovens. By products like benzene,
toluene, xylene, napthalene, coal tar, creosote oil, pitch, ammonium sulphate
and benzol products are also recovered from the coke ovens gas. The plant produces, among other by-products,
pushkala a prime fertiliser based on ammonium sulphate.
Sinter Plant:
Blast Furnace:
The company has two
blast furnaces with an effective volume of 3200 cu.m. each. It produces about 500 tonnes of molten iron
per day. The annual production capacity
is 3.4 million tonnes of liquid iron.
Steel Melt Shop & Continuous Casting:
Three Top blown
converters, each of 133 cu.m. volume, produces a total of 2.7 million tonnes of
liquid steel per annum. This liquid steel thus produced is casted in six-4
strand bloom casters. A special feature in energy conservation is the
collection of Converter gas to be used as a fuel in the plant. The entire
molten steel at VSP is continuously cast at the radial type continuous casting
machines resulting in significant energy conservation and better quality steel.
100% continuous casting on such a large scale has been conceived for the first
time in
Rolling Mills:
The cast blooms
from continuous casting department heated and rolled in the three high speed
and fully automated rolling mills namely Light & Medium Merchant Mill, Wire
Rod Mill and Medium Merchant & Structural Mill to produce various long
products like reinforcement bars, rounds, squares, flats, angles, channels,
billets, wire rods, etc. Technologies adopted at Rolling Mills include
world-class Stelmor and Tempcore processes.
Press clipping:
RINL CHALKS OUT
EXPANSION PLAN FOR VISAKHAPATNAM STEEL company plans to invest Rs 180000
Millions in 3 phases)
[Silverline
Information Systems Private Limited Source : Financial Times Limited]
INDIA BUSINESS
INSIGHT via NewEdge Corporation : Rashtriya Ispat Limited (RINL) plans to
expand the capacity of the Visakhapatnam Steel (VSP) to 10 million tonnes. The
company intends to invest Rs 18,00 phases. RINL will invest Rs 3,000 to expand
the capacity from 3 million to 5 million tonnes in the first phase.
The company intends
to expand the capacity to 6.8 million tonnes in second phase and to 10 million
tonnes in the third phase. RINL registered net profit of Rs. 3500.000 million
during Apr-Jun 2004. The Company recorded growth of 31 percent in sales of Rs.
13830.000 million during the period.
The company
has been accredited with ISO 9002 Certification.
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No 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.40.26 |
|
|
1 |
Rs.81.15 |
|
Euro |
1 |
Rs.56.28 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
4 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
4 |
|
--PROFITABILIRY |
1~10 |
4 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
4 |
|
--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 |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
43 |
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a
composite of weighted scores obtained from each of the major sections of this
report. The assessed factors and their relative weights (as indicated through
%) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit transaction.
It has above average (strong) capability for payment of interest and
principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General unfavourable
factors will not cause fatal effect. Satisfactory capability for payment of
interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems
comparatively below average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
|