MIRA INFORM
REPORT
|
Report
Date : |
10.01.2008 |
IDENTIFICATION DETAILS
|
Name : |
STEEL
AUTHORITY OF INDIA LIMITED |
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Registered
Office : |
Ispat
Bhawan, Lodi Road, New Delhi – 110 003 |
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Country
: |
India |
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Financials
(as on) : |
31.03.2007 |
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Date
of Incorporation : |
24.01.1973 |
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Com.
Reg. No.: |
55-6454 |
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CIN
No.: |
U27109DL1973PLC006454 |
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TAN
No.: (Tax
Deduction & Collection Account No.) |
DELS2116A |
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PAN
No.: (Permanent
Account No.) |
AAAC57062F |
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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 : |
Manufacturing
and marketing of Pig Iron, Crude Steel, Saleable Steel and Calcium Ammonium
Nitrate. |
RATING & COMMENTS
|
MIRA’s
Rating : |
Aa |
RATING
|
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
Maximum
Credit Limit : |
USD
700000000 |
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Status
: |
Excellent
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Payment
Behaviour : |
Regular |
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Litigation
: |
Clear |
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Comments
: |
Subject is Government of India Company and it has improved
its performance and business since 2003. Trade relations are fair. Payments are
now correct and as per commitments. The company has been doing well. It can
be considered good for any normal business dealings at usual trade terms. It
can be regarded as a promising business partner in a medium to long-run. |
LOCATIONS
|
Registered
Office : |
Ispat
Bhawan, Lodi Road, New Delhi – 110 003, India |
|
Tel.
No.: |
91-11-24367481
(14 lines) |
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Fax
No.: |
91-11-24367015 |
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E-Mail
: |
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Website
: |
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Cable : |
STEELINDA |
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|
Head
Office : |
v
Ispat
Bhavan, 40, Jawaharlal Nehru Road, Kolkata - 700 071, West Bengal, India
v
Ispat
Niketan, 52/1A Promothesh Barua Sarani, (Old Ballygunj Circular Road), Kolkata
– 700 019, West Bengal, India Phone 91-33- 2476 9986, 476 9987 Fax : 91-33-2479 9799 E-mail: edfin@sail-steel.com |
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International
Trade Division : |
Hindustan
Times House, 13th Floor, 18-20, Kasturba Gandhi Marg, New Delhi -
110 001, India |
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Tel.
No.: |
91-11-2335
5733 |
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Fax
No.: |
91-11-2332
1018, 2331 2774 |
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E-Mail
: |
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Factory
: |
Integrated Steel Plants
v
Bhilai
Steel Plant, Chhattisgarh – 490 001, India v
Durgapur
Steel Plant – 713 203, West Bengal, India v
Rourkela
Steel Plant – 769 011, Orissa, India v
Bokaro
Steel Plant – 827 001, Jharkhand v
P.
O. Hinoo, Ranchi – 834 002, Bihar, India Special Steel Plants
v
Alloy
Steel Plants, Durgapur – 713 208, West Bengal, India v
Salem
Steel Plant – 636 013, Tamilnadu, India v
Visvesvaraya
Iron & Steel Plant, Bhadravati, Karnataka, India |
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Regional
and Zonal Offices : |
v
Antriksh
Bhavan, 10th Floor, 22 Kasturba Gandhi Marg, New Delhi - 110
001, India v
Jeevan
Sudha, 8th - 9th Floors, 42-C, Jawaharlal Nehru
Road, Kolkata- 700 071, West Bengal, India v
The
Metropolitan, Plot No. C-26/27, Bandra-Kurla Complex, Bandra (East), Mumbai-
400 051, Maharashtra, India v
Ispat Bhavan, 2 Kodambakkam High Road, Chennai - 600 034, Tamilnadu,
India 28259660 (LP) E-mail: rmfpsr@sail-steel.com, rmlpsr@sail-steel.com v
Ispat Bhavan, H.P. Bramhachari Road, Paltan Bazar, Guwahati - 781
008, Assam, India Phone: 91-361-2542756, 2545260,
2541519, 2541544 |
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Branches
/ Sales Office : |
C Agra C Allahabad C Chandigarh C Faridabad C Ghaziabad C Jalandhar City C Jammu C Kanpur C Lucknow C Ludhiana C Mandi Gobindgarh C New Delhi C Bhubaneshwar C Bokaro C Kolkata C Dimapur C Durgapur C Guwahati C Patna C Rourkela C Ahmedabad C Baroda C Bhilai C Gwalior C Indore C Jabalpur C Jaipur C Kota C Mumbai C Nagpur C Pune C Bangalore C Belgaum C Chennai C Coimbatore C Hyderabad C Kochi C Tiruchirapalli C Vijayawada C Visakhapatnam |
DIRECTORS
|
Name : |
Mr. S K Roongta |
|
Designation
: |
Chairman |
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FUNCTIONAL
DIRECTORS |
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|
Name : |
Mr. K K Khanna |
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Designation
: |
Director (Technical) |
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Name : |
Mr. G. Ojha |
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Designation
: |
Director (Personnel) |
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Name : |
Mr. Soiles Bhattacharya |
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Designation
: |
Director (Finance) |
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Name : |
Mr. Shoeb S Ahmed |
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Designation
: |
Director (Commercial) |
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MANAGING
DIRECTORS |
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|
Name : |
Mr. Nilotpal Roy |
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Designation
: |
Managing Director (IISCO Steel Plant) |
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Name : |
Mr. V Shyamsunder |
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Designation
: |
Managing Director (Durgapur Steel Plant) |
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Name : |
Mr. B N Singh |
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Designation
: |
Managing Director (Rourkela Steel Plant) |
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Name : |
Mr. V K Srivastava |
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Designation
: |
Managing Director (Bokaro Steel Plant) |
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Name : |
Mr. R Ramaraju |
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Designation
: |
Managing Director (Bhilai Steel Plant) |
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GOVERNMENT
DIRECTORS |
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|
Name : |
Mr. A K Rath |
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Designation
: |
Special Secretary and Financial Adviser (Ministry of Steel,
Government of India) |
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|
Name : |
Mr. G. Elias |
|
Designation
: |
Joint Secretary (Ministry of Steel, Government of India) |
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INDEPENDENT
DIRECTORS |
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|
|
|
Name : |
Dr. S C Jain |
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Designation
: |
Independent Directors |
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|
Name : |
Prof. R P Sengupta |
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Designation
: |
Independent Directors |
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|
Name : |
Dr. Velu Annamalai |
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Designation
: |
Independent Directors |
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|
Name : |
Mr. Siddharth Kak |
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Designation
: |
Independent Directors |
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|
Name : |
Mr. Shyamal Ghosh |
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Designation
: |
Independent Directors |
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|
Name : |
Mr. Mohammad Yusuf Khan |
|
Designation
: |
Independent Directors |
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|
Name : |
Prof. Deepak Nayyar |
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Designation
: |
Independent Directors |
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|
Name : |
Prof. Javaid Akhtar |
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Designation
: |
Independent Directors |
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|
Name : |
Mr. P K Sengupta |
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Designation
: |
Independent Directors |
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Name : |
Dr. Vinayshil Gautam |
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Designation
: |
Independent Directors |
KEY EXECUTIVES
|
Name : |
Mr.
Devinder Kumar |
|
Designation
: |
Company
Secretary |
MAJOR SHAREHOLDERS
|
Names of Shareholders |
No. of Shares |
Percentage of Holding |
|
Government
of India |
3544690285 |
85.82 |
|
Financial
Institutions & Banks |
164232264 |
3.98 |
|
Mutual
Funds and UTI |
58188578 |
1.41 |
|
Foreign
Institutional Investors (Fit's) |
254199047 |
6.15 |
|
Global
Depository Receipts (GDRs) |
1546835 |
0.04 |
|
Companies-i(including,Trusts&
'Clearing Members) |
23359147 |
0.56 |
|
Individuals
(including Employees & NRIs) |
84184389 |
2.04 |
|
Grand Total |
4130400545 |
100.00 |
BUSINESS DETAILS
|
Line
of Business : |
Manufacturing and marketing of Pig Iron, Crude Steel,
Saleable Steel and Calcium Ammonium Nitrate. |
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Products
: |
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Imports
from : |
Argentina, Australia, Austria, Belgium, Brazil, Canada, China,
CIS, Czech Republic, Denmark, Finland, France, Germany, Israel, Italy, Japan,
Korea, Luxembourg, Netherlands, Russia, Singapore, Slovenia, Spain, Sweden,
Switzerland, U.K., Ukraine and U.S.A. |
PRODUCTION
STATUS
|
Particulars |
Unit |
Installed Capacity |
Actual Production |
|
Main Steel Plants |
|
|
|
|
Pig Iron |
Tones |
1740000 |
451636 |
|
Crude
Steel |
Tones |
12987000 |
13194395 |
|
Saleable
Steel |
Tones |
10990000 |
12126799 |
|
|
|
|
|
|
Alloy Steels Plants |
|
|
|
|
Pig Iron |
Tones |
58000 |
47292 |
|
Crude
Steel |
Tones |
352000 |
308744 |
|
Saleable
Steel |
Tones |
457000 |
454387 |
GENERAL INFORMATION
|
No. of
Employees : |
137496 |
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Bankers
: |
v
State
Bank of India, Madam Cama Road, Mumbai – 400 021, Maharashtra, India v
State
Bank of India, Rourkela – 769 011, Orissa, India v
State
Bank of India, Salem – 636 001, Tamil Nadu, India v
Punjab
National Bank, New Delhi, India v
United
Bank of India, New Delhi, India v
Bank
of Baroda, New Delhi, India v
Syndicate
Bank, New Delhi, India v
Union
Bank of India, New Delhi, India v
Bank
of India, New Delhi, India v
Canara
Bank, New Delhi, India v
Indian
Overseas Bank, New Delhi, India v
State
Bank of Patiala, New Delhi, India v
Bank
of Maharashtra, New Delhi, India v
Oriental
Bank of Commerce, New Delhi, India v
Punjab
& Sind Bank Limited, New Delhi, India v
Jammu
& Kashmir Bank, New Delhi, India v
State
Bank of Saurashtra, New Delhi, India v
Central
Bank of India, New Delhi, India v
State
Bank of Hyderabad, New Delhi, India v
State
Bank of Bikaner & Jaipur, New Delhi, India v
State
Bank of Indore, New Delhi, India v
State
Bank of Mysore, New Delhi, India v
HDFC
Bank, New Delhi, India v
Allahabad
Bank, New Delhi, India v
UCO
Bank, New Delhi, India v IDBI Bank Limited |
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Facilities : |
Secured Loan (Rs. In Millions)
(a)
Secured by hypothecation of all current assets (b) Secured by charges ranking pari-passu inter-se, on all the
present and future immovable property at Mpuje-Wadej of City Taluka, District
Ahmedabad, Gujarat and Company's Plant & Machinery, including the land on
which it stands, pertaining to Durgapur Steel Plant.f DSP ) (c)
Redeemed at par by exercising call option Note : Amount repayable within one year as at 31.03.2007, Rs. 6250.500 million ( previous year: Rs. Nil crore) Unsecured Loan (Rs. In Millions)
(a)
Guaranteed by Government of India / State Bank of India. (b) Redeemed
at par by exercising call option Note : Amount repayable within one year as at 31.03.2007,
Rs.14220.700 million (previous year: Rs. 14482.300 million) |
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Banking Relations : |
Good |
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|
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|
Auditors
: |
v
S.
K. Mittal & Company Chartered Accountants v
Ray
& Ray Chartered Accountants v
Dass
Maulik Mahendra K Agrawala & Company
Chartered Accountants |
|
|
|
|
Associates
: |
v
All
Government of India Undertaking Companies v
SAIL,
Bansal Service Centre Limited v
Metaljunction.Com
Private Limited v
UEC
SAIL Information Technology Limited v
North
Bengal Dolomite Limited v
NTPC
SAIL Power Company Private Limited v
Bokaro
Power Supply Company Private Limited v
Bhilai
Electric Supply Company Private Limited |
|
|
|
|
Subsidiaries |
v
The
Indian Iron & Steel Company Limited v
IISCO
- Ujjain Pipe & Foundry Company Limited v
Maharashtra
Elektrosmelt Limited v
SAIL
Power Supply Company Limited (SPSCL) v
Bhilai
Oxygen Limited (BOL) |
CAPITAL STRUCTURE
Authorised
Capital :
|
No. of
Shares |
Type |
Value |
Amount |
|
5000000000 |
Equity
Shares |
Rs.10/- each |
Rs. 50000.000 millions |
Issued,
Subscribed & Paid-up Capital :
|
No. of
Shares |
Type |
Value |
Amount |
|
4130400545 |
Equity Shares |
Rs.10/- each |
Rs. 41304.000
millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE SHEET
|
SOURCES OF FUNDS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
|
SHAREHOLDERS
FUNDS |
|
|
|
|
|
1] Share Capital |
41304.000 |
41304.000 |
41304.000 |
|
|
2]
Reserves & Surplus |
131827.500 |
84710.100 |
61762.500 |
|
NETWORTH
|
173131.500 |
126014.100 |
103066.500 |
|
|
LOAN
FUNDS |
|
|
|
|
|
1]
Secured Loans |
15563.900 |
11221.600 |
16039.800 |
|
|
2]
Unsecured Loans |
26241.300 |
31754.600 |
41658.100 |
|
TOTAL
BORROWING
|
41805.200 |
42976.200 |
57697.900 |
|
|
DEFERRED
TAX LIABILITIES |
14126.600 |
14844.600 |
18443.100 |
|
|
|
|
|
|
|
TOTAL
|
229063.300 |
183834.900 |
179207.500 |
|
|
|
|
|
|
|
APPLICATION OF FUNDS
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block]
|
115977.100 |
121621.400 |
124850.700 |
|
Capital work-in-progress
|
12360.400 |
7579.400 |
3664.800 |
|
|
|
|
|
|
|
INVESTMENT
|
5137.900 |
2920.000 |
6067.100 |
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES
|
|
|
|
|
|
|
Inventories
|
66514.700
|
62100.600
|
42206.900
|
|
|
Sundry Debtors
|
23147.500
|
18817.300
|
19084.500
|
|
|
Cash & Bank Balances
|
96098.300
|
61726.400
|
61321.200
|
|
|
Interest
Receivable/Accrued
|
0.000
|
854.800
|
1421.800
|
|
|
Other Current Assets
|
1525.600
|
0.000
|
0.000
|
|
|
Loans & Advances
|
16500.100
|
30338.200
|
19301.900
|
Total Current Assets
|
203786.200
|
173837.300
|
143336.300
|
|
Less : CURRENT LIABILITIES & PROVISIONS
|
|
|
|
|
|
|
Current Liabilities
|
53982.000
|
51917.000
|
47806.700
|
|
|
Provisions
|
55507.800
|
72364.400
|
53854.000
|
Total Current Liabilities
|
109489.800
|
124281.400
|
101660.700
|
|
Net
Current Assets
|
94296.400
|
49555.900
|
41675.600
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES
|
1291.500 |
2158.200 |
2949.300 |
|
|
|
|
|
|
|
TOTAL
|
229063.300 |
183834.900 |
179207.500 |
|
PROFIT & LOSS ACCOUNT
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
Sales Turnover [including other income]
|
359240.700 |
293921.700 |
297671.700 |
|
|
|
|
|
Profit/(Loss) Before Tax
|
94226.200 |
57057.400 |
93653.500 |
Provision for Taxation
|
3220.330 |
16927.700 |
25483.800 |
Profit/(Loss) After Tax
|
62022.900 |
40129.700 |
68169.700 |
|
|
|
|
|
Export Value
|
11694.800 |
10916.400 |
13354.300 |
|
|
|
|
|
Import Value
|
72811.700 |
61481.800 |
46170.400 |
|
|
|
|
|
Total Expenditure
|
264844.000 |
236757.800 |
203399.200 |
QUARTERLY
RESULTS
|
PARTICULARS |
|
30.09.2007 |
30.06.2007 |
|
Type |
|
2nd Quarter |
1st Quarter |
|
Sales Turnover |
|
91634.900 |
80394.700 |
|
Other Income |
|
3042.600 |
3069.300 |
|
Total Income |
|
94677.500 |
83464.000 |
|
Total Expenditure |
|
65344.000 |
56565.900 |
|
Operating Profit |
|
29333.500 |
26898.100 |
|
Interest |
|
593.600 |
796.400 |
|
Gross Profit |
|
28739.900 |
26101.700 |
|
Depreciation |
|
3012.000 |
3011.900 |
|
Tax |
|
8673.000 |
7791.500 |
|
Reported PAT |
|
17002.400 |
15251.200 |
KEY
RATIOS
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
Debt-Equity Ratio |
0.28 |
0.44 |
0.94 |
|
Long Term Debt-Equity Ratio |
0.24 |
0.40 |
0.83 |
|
Current Ratio |
1.36 |
1.17 |
0.99 |
|
TURNOVER RATIOS |
|
|
|
|
Fixed Assets |
1.33 |
1.14 |
1.15 |
|
Inventory |
5.99 |
6.27 |
8.80 |
|
Debtors |
18.82 |
17.25 |
18.52 |
|
Interest Cover Ratio |
29.37 |
13.20 |
15.36 |
|
Operating Profit Margin(%) |
27.78 |
22.58 |
34.80 |
|
Profit Before Interest And Tax Margin(%) |
24.71 |
18.89 |
31.28 |
|
Cash Profit Margin(%) |
18.78 |
15.97 |
24.81 |
|
Adjusted Net Profit Margin(%) |
15.71 |
12.28 |
21.29 |
|
Return On Capital Employed(%) |
51.28 |
38.03 |
68.77 |
|
Return On Net Worth(%) |
41.47 |
35.04 |
88.85 |
LOCAL AGENCY FURTHER
INFORMATION
Incorporated in 1973, the Steel Authority of India
(SAIL) is a giant among the steel majors in India. It is the largest steel
conglomerate in the country and the world's ninth-largest steelmaker. It
manages and operates five integrated steel plants at Bhilai, Madhya Pradesh;
Bokaro, Bihar; Durgapur, West Bengal; Rourkela, Orissa; and Burnpur, West
Bengal. It also has four units for special and alloy steels and ferro alloys at
Durgapur, West Bengal; Salem, Tamilnadu; Chandrapur, Maharashtra; and
Bhadravati, Karnataka.
Subject operates nine iron ore, five limestone, three dolomite and three coal
mines besides generating 700 MW of captive power. The Central Marketing
Organization, with its head quarters at Calcutta, monitors its domestic market
through an expanding network of stockyards, dockyards, branch sales offices and
consignment agents while the International Trade Division looks after its
export of world-class steel to as many as 70 countries across the globe, by
establishing close liaison with buyers abroad.
The company is the only producer of extra-wide (up to 3200 mm) and heavy
plates, catering to the needs of the construction, automobile, shipbuilding,
engineering and other sectors.
The subsidiaries of SAIL are The Indian Iron & Steel Company Limited and
Maharashtra Elektrosmelt Limited, Bhilai Oxygen Limited, which was one of the
subsidiary company was wound-up by the order of dated 27th May 2005
of Hon'ble High Court of Delhi.
Subject's plants and units have received ISO 9002/1 certifications and are
well-equipped with the state-of-the-art technology to meet advanced needs and
applications. ISO 9002-certified stainless steel is exported to several
developed countries.
The Government of India has approved the Financial and Business Restructuring
of SAIL involving waiving of loans advanced to it from Steel Dvpt Fund to a
value of Rs. 50730 millions and Rs. 3810 millions from Government of India;
Provision of Government guarantees with 50% interest subsidy for loan and
interest thereon on Rs.1500 millions to be raised by SAIL from the market to
finance reduction in manpower through voluntary retirement scheme; Provision of
Government guarantee for loan and interest thereon of Rs.1500 millions
(incl.Rs.500 millions already agreed) to be raised by SAIL from the market
primarily for meeting repayment obligation on past loans during 1999-2000. To
initiate the process of divestment of the following non-core assets into a
joint venture with protecting jobs of the existing employees SAIL has decided
to sell, lease or dispose of by way of divesting the following undertakings of
the company either through joint venture arrangement or otherwise. Captive
Power Plants at Rourkela, Durgapur and Bokaro; Oxygen Plant-2 of Bhilai Steel
Plant; Salem Steel Plant, Salem; Alloy Steels Plant, Durgapur; Visvesvaraya
Iron and Steel Plant, Bhadravati; Rourkela Fertilizer Plant, Rourkela.
For Salem Steel Plant of subject the Company has sought expression of interest
from interested parties for setting up of stainless steel melting, refining and
casting facilities and also option for interest in Salem Steel Plant itself
along with the above facilities.
The company has signed a joint venture agreement with Tata Iron & Steel and
Kalyani Steel for the creation of a company to manage their steel
e-marketplace, metaljunction.com.
The company tied-up with the National Building Construction Corporation (NBCC)
for formation of a consortium to help reconstruction activity in quake-hit
Gujarat. The combine will initially concentrate on building low-cost, quake-hit
and cyclone-resistant dwelling units suitable for rural Gujarat.
The company has completed the Modernisation Programme at Bhilai Steel Plant and
also the Upgradation of Durgapur Steel Plant has also been completed during
2001-02. At Bokaro Steel Plant the equipment work is in progress and the
Furnace was commissioned in 2002-03. The company incurred a capital expenditure
of Rs.2410 millions. The Company has entered into an agreement with Corus
Consulting Limited UK for Long Rail facility and the UK company will provide a
technical back up support for SAIL.
During 2004-05 the company projects worth Rs.30000 millions at various stages
of implementation and approval in the company. Some of the major ongoing schemes
are Rebuilding of Coke Oven Battery-5, Upgradation of Blast Furnace-7 and
Revamping of B-Strand of Wire Rod Mill at Bhilai Steel Plant: Bloom Caster with
Associated facilities at Durgapur Steel Plant: Rebuilding of Coke Oven
Battery-1, Capital Repair of BF-4 and Upgradation of ERW Pipe Plant at Rourkela
Steel Plant: Rebuilding of Coke Oven Battery-5, Revamping/modification of Mae
West Block System and housing machining in Finishing Stands F6-F12 at Bokaro
Steel Plant. Some of the projects under approval are Up gradation of Slab
Caster, RH Degassing and Ladle Furnace, Modernization of Sinter Plant-II &
Desulphurisation Unit in SMS-II at Bhilai Steel Plant: Coal Dust Injection in
Blast Furnace(3&4) at Durgapur Steel Plant: Installation of Hot Metal
Desulphurisation Unit at SMS-II at Rourkela Steel Plant: Upgradation of Tandem
Mill & Pickling Line in cold Rolling Mill (CRM) and Installation of Coal
Dust Injection in Blast Furnace (2 and 3).
FINANCIAL
REVIEW
Financial Year 2006-07
has been eventful year for company with further momentum in improving
operational efficiencies, laying strong foundation and building road map for
modernisation and expansion of SAIL Plants, with several new initiatives
undertaken, with its human resource at the core.
During the year, company got the distinction of first metal
company in the country to reach a market capitalization of Rs. 500000
millions.
The company set new record in achieving the turnover of Rs.391890 million and
profit before tax of Rs.94230 million, registering growth of 21% & 65%
respectively over previous year. Company recorded net profit after tax (PAT) of
Rs.62020 million, an increase of 55%. There have been improvements in all
financial parameters.
While improved market condition helped in recording better
financial performance, significant improvements came by way of several internal
initiatives viz., higher capacity utilization at 114%, best ever
techno-economic parameters, thrust on production and sales of value added
products, emphasis on cost reduction and prudent cash management etc.
Impetus on cost reduction at all levels, productivity improvements through
systemic approach and application of new technology have resulted in cost
savings of Rs.403 crore during the year. Thrust areas included achieving higher
yields, improved techno-economic/productivity parameters, reduction in usage of
coking coal etc.
The strong financial performance contributed to enhanced cash generation to
meet our strategic objectives. Debt equity ratio has improved to 0.24 : 1 (as
on 31.3.2007) from 0.35 : 1 (as on 31.3.2006). The company had liquid assets of
Rs.90337.400 million as at 31.3.2007 invested in short term deposits with
scheduled banks and considering borrowings of Rs.41805.200 million maintained
its virtual debt free status. The interest cost at Rs.3321.300 million reduced
by Rs.1356.300 million over previous year and the company earned interest of
Rs.6576.000 million during the year on the short term deposits compared to
Rs.4085.300 million in previous year. The entire capital expenditure of
Rs.11500 million during the year was funded through internal accruals.
During the current year, company has constituted a Gratuity Trust under the
name 'Steel Authority of India Limited Gratuity Fund' and contributed Rs.7500
million to the same. This measure will secure gratuity payment to the
employees.
The company has paid interim dividend @ 16% of the paid-up equity capital
during the year. The Board of Directors has further recommended a final
dividend @ 15% on paid up equity share capital subject to approval of
shareholders, thus making the total dividend @ 31% for the year 2006-07
(previous year 20%). A sum of Rs.6350 million has been transferred to the
general reserves during the year (previous year Rs.3100 million).
PRODUCTION
REVIEW
The company achieved a
new record in production of saleable steel at 12.6 million tonnes with capacity
utilization touching a new high of 114%, through improvements in operational
efficiencies. The finished steel component in total saleable steel was also
highest ever at 10.3 million tonnes, a growth of 5% over previous year. Special
thrust was given to orient the company's product mix for more value added
products and increasing share of special steels. The production of value added
items touched 3 million tonnes for the first time and recorded a growth of 17%
during the year over previous year. Substantial growth was achieved in
production of pipes (38%), TMT bars (12%) and CRNO steel (10%).
The company introduced several new products in the domestic market during the
year : HCR-EQR TMT for earthquake resistant construction, rock bolt TMT for
tunnel construction, EN series HR coils for LPG cylinders, MC 12 HR coils for
chains etc.. In addition, Bhilai Steel Plant developed high strength vanadium
rails, Durgapur Steel Plant produced S-profile loco wheels for high speed locos
and Rourkela Steel Plant rolled special plates which were used in the
indigenously built rocket PSLV C-7. Company takes pride in supplying steel for
critical usage in projects of national importance, such as those used in
highest railway bridge in the world built over river Chenab, new generation
loco wheels, naval aircraft carrier and materials for several products of
defence usage.
The company continued to take measures for further improving techno-economic
parameters, achieving a record continuous cast production of 8.3 million tonnes
(up by 5%), lowest ever coke rate of 541 kg/thm, best ever blast furnace
productivity at 1.50 t/ m3/day (up by 3%) and lowest ever energy consumption at
7.16 Gcal/tonne (1% improvement). Bhilai Steel Plant achieved the highest
campaign life of 6252 heats in converter which is the best in country for any
top blown converter. Specific power consumption reduced by 4% as compared to
previous year to lowest ever level of 460 kwh/T of saleable steel.
General Economic
Environment:
The world economy has witnessed a continuous growth in the last five years with
the world Gross Domestic Products (GDP) increasing by an average of 4.4%
annually. The strengthening of industrial activities in Asia and Europe boosted
the global growth to an estimated 5% in 2006. Asia, led by China and India,
continues to be the world economy's growth engine. The United States, although
still dominant economic power, have been supplanted at the forefront of growth
by China and India and other emerging economies.
East Asian Economies lead the economic growth in the developing world with an
average of 7.6% in 2006. China recorded a growth rate of more than 10% while
South Asia led by India (growth of 9%) had a growth rate of 6.7%. The
performance of the least developed countries, especially of the oil producers
and other mineral exporters, was surprisingly strong averaging nearly 7% in
2006. Japan also experienced robust growth in 2006 while growth in Europe also
exceeded expectations. The economic growth of India, China & others have
boosted demand for resources, which in turn, has created shortage of raw
materials & have sent commodities' prices soaring.
Global growth is expected to slacken around 3.2% in 2007. However, the growth
is expected to remain robust at 5.9% for developing countries and 6.5% for
economies in transition. Prospects for growth in both East Asian economies and
South Asia are expected to remain strong. As per the Reserve Bank of India
(RBI) forecast, Indian economy is expected to grow at a rate of 8.5% or above
in 2007.
The slackening of the world economic growth in 2007, emanates out of the
uncertainties, like movement of crude oil prices, political instability in
Iraq, Afghanistan and elsewhere in the middle east etc, and cooling of the
housing boom in U.S.A. leading to slowing down of the US economy (expected growth
2.2% in 2007). The economic recovery in Japan and Europe is not expected to be
strong enough to replace the US as the engine of growth of the world economy.
Climate change has also become a critical global priority, as it exercises a
devastating toll on the environmental health of the nations. Efforts are being
made to improve energy efficiency both in China and India.
India's global competitiveness (43rd) compares well with those of the three
other large emerging economies like China (54th), Russia (62nd) and Brazil
(66th). (Source: World Economic Forum Annual Meet 2007) India has been moving
towards greater innovation capabilities. Once India exploits its resource base
further, it should be able to produce quality goods at low price being a low cost
economy, with a high quality resource base.
Indian Economy:
India today is one of the fastest growing economies with a Compounded Annual
Growth Rate (CAGR) of 8.1% in last 3 years. The GDP growth for 2006-2007 has
been 9.4%. The GDP is expected to grow @ 8-10% upto 2011-12.
The growth of industrial production in 2006-2007 stands at 11.3% over last
year. The growth in the ndustry in FY'07 was mainly driven by manufacturing
sector which showed a remarkable growth of 12.3% over 2005-2006. Mining sector grew
by 5.1% and electricity by 7.2%. The six infrastructure industries grew by 8.6%
in 2006-07 as against 6.2% in the previous year. The sectoral growth rates for
the period are basic goods-10.2%, capital goods- 17.7% and intermediate
goods-11.7%. Consumer durables have shown a growth of 9.0%
World Steel Scenario:
As per International Iron & Steel Institute (IISI), Global crude steel
output in 2006 was 1244 million tonnes up by 8.9% compared to 2005. Of this the
Asian Region alone accounted for 53.7% as against only 38.4% ten years ago.
Apparent steel consumption of finished steel touched 1113.2 million tonnes in
2006, showing a growth of 8.5% over 2005. There was a positive growth trend in
steel consumption all over the world. Global steel trade has increased by 13%
to 395 million tonnes in 2006. Internationally, steel prices remained stable or
buoyant practically through out the year.
China has further strengthened its position as largest single market for steel.
Chinese apparent steel consumption of finished steel at 356.2 million tonnes
reflected a 9% growth in 2006 and is further expected to increase by 13% in
2007. Strong positive growth trends are foreseen in Africa, Asia and South
America in 2007. However, the soaring prices of raw materials and the
progressive pressure on the availability of inputs has been a cause of major
concern. Prices of key inputs such as coking coal, coke, iron ore, scrap, etc.
continued to remain high. Prices of other important inputs like Nickel,
Manganese Ore, Copper, Zinc also continued to rise, with global price of nickel
increasing 55% in the financial year 2006-07 and touching a record high of $
51,625 per tonne.
Production vis-a-vis Demand for Steel in
India:
India produced about 45 million tonnes of crude steel in fiscal 2006-07, a
growth of nearly 8% over previous year's production of 41.66 million tonnes.
The apparent domestic consumption of finished mild steel during the year FY'07
was 43.7 million tonnes as compared to 39.2 million tonnes during the previous
year. The import of finished mild steel during FY'07 was approx. 4.1 million
tonnes as compared to 3.9 million tonnes in FY'06 and export was 4.8 million
tonnes as compared to 4.5 million tonnes during the previous year. Both imports
and exports have shown a growth of 6.5% and 6.1% respectively.
The Construction, Automobiles, Water, Oil & gas transportation and capital
goods sectors are expected to be the key growth drivers in FY'08. In the last
three years, the growth in construction has been in the range of 12-14% driven
mainly by industrialization, massive infrastructure investment, urbanization
and the real estate boom. The projected investment of approx. Rs.1500000
million in infrastructure like rails, roads, ports & airports in the 11th
plan period will all lead to a surge in the activities of the construction
industry and thereby to increased consumption of long products.
The domestic automobile sector is growing at 14.2% CAGR over the past few years
while the auto components market has been growing at 19.2% CAGR.
India is expected to become a major hub both for the
automobile and as well as for the auto components sector. This will fuel the
demand for cold rolled & coated products. Similarly, the demand for flat
products particularly Pipes & Tubes segment, is expected to increase
substantially driven by demandfor pipelines for crude oil, LNG and Petroleum
products.
Position of Steel
Authority of India Limited (SAIL):
India is ranked as the 7th largest steel producing country in the world, while
SAIL is ranked as the 19th largest steel producer in the world during 2006
(Source: IISI) SAIL continues to be the largest steel producer of finished
steel in India with about one fourth of the market share during FY'07.
Outlook:
According to Joint Plant Committee, there has been a growth of 11.5% in
apparent consumption of finished steel in 2006-07 fiscal over the previous
year. India's apparent steel consumption is expected to grow @ 9.1% in 2007, 7%
upto 2010 and 7.7% upto 2015. (Source: IISI)
DP growth is estimated at 9% during 2006-07 and is expected to grow @ 8-10%
upto 2011-12. Savings rate has risen to 34.1% of GDP and GFCF to 31% in
2006-07. Industrialization & Manufacturing growth has been in double digits
while expected growth in construction is in the range of 12-14%. Investment in
infrastructure is envisaged at $ 350 billion. Cement, Steel ratio being 3:1,
there is ample opportunity to increase steel use.
As the per capita steel consumption in India is still very low compared to
world average, potential for growth is enormous. With economy expected to
remain on high growth path, steel consumption is expected to grow in double
digits right upto 2011-12.
REVIEW OF FINANCIAL PERFORMANCE
FINANCIAL OVERVIEW OF SAIL
Performance of SAIL:
During FY 2006-07 in line with the increased domestic demand, the company
surpassed all previous in production and sales volume. Production of saleable
steel at 12.6 million tonnes compared to 12.05 million tonnes in 2005-06
recorded a growth of 4.4%. Sales volume of saleable steel at 11.9 million
tonnes as against 11.3 million tonnes in 2005-06, recorded a growth of
5%.
During FY 2006-07, SAIL achieved the best ever turnover at Rs. 391890 millione
and best ever profit before tax (PBT) of Rs 94230 million, surpassing the
previous best PBT of Rs 93650 million achieved in FY 2004-05. Average price
realisation was higher by 14% due to improvement in prices and higher sales of
value added products. Improvement in techno-economic indices and cost control measures
contributed to the record performance. Operating profit was higher by Rs. 35850
million at Rs. 109660 million. Interest costs were lower by Rs. 1360 million
and interest earnings were up by Rs. 2490 million.
Initiatives taken by the SAIL management
include:
Marketing Efforts:
* Enlarging customer base by
appointment of new 453 dealers in 430 districts during the year.
* Thrust on customer support &
satisfaction by opening 12 new customer contact offices and addition of new
warehouses at 16 locations.
* e-booking & supply at doorstep
facility was introduced for small consumers of TMT in Delhi and Kolkata
regions.
* Introduction of various new products
like HCR-EQR TMT for earthquake resistant construction, Rockbolt TMT for tunnel
construction, EN Series HR Coils for LPG cylinders and MC- 12 HR Coils for
chains, S-profile loco wheels for DLW. MG Diesel loco wheels, Cu-Cr Rail
developed, Vanadium Micro alloyed Rail, Spring Steel Billets (SUP 11 A).
* Significant growth was registered in
sales of TMT Bars, Wire Rods, Plates, HR Coils, Electrical Steel, Pipes, Heavy
Structurals, Rails, etc. during 2006-07.
* New international markets were
explored viz Portugal (Plates & HR Coil), Sudan (Plates and Billets),
Middle East (Wirerods and Billets), South America (CRNO) and Malaysia (MG
Diesel Loco Wheels).
Cost Control Measures:
* Emphasis on cost reduction and
productivity improvement through systematic application of new technology and
strong awareness to reduce cost at all levels of operation, has been maintained
during the year.
* A saving of Rs. 4030 million has
been achieved during the year through cost control and revenue maximization.
Cost controlsavings have been achieved in major areas of operation, viz
reduction in specific energy consumption, reduction in specific usage of coking
coal, higher CC production, low power consumption and improvement in other
techno-economic parameters.
Fund Management:
During the year, the company continued its thrust on debt reduction and fund
management. Overall debt of the company reduced by Rs 1170 million, Borrowing
as on 31.03.07 reduced to Rs. 41810 million as against Rs.42980 million as on
31.03.06. This enabled the company to improve its debt/equity ratio to 0.24:1
as on 31.03.07 from 0.35:1 as on 31.03.06 and helped in reducing its total
interest burden. The company continued to maintain its virtual debt-free status
with term deposits with Banks of Rs. 90340 million against borrowings of Rs.
41810 million as at the year-end.
During FY 2006-07, company has earned interest of Rs 658 crore through
short-term deposits with schedule banks.
Creation of Gratuity Trust:
During the year, the company constituted a Gratuity Trust and contributed Rs.
7500 million to it.
ANALYSIS OF THE
FINANCIAL PERFORMANCE OF THE COMPANY
Sales turnover:
Sales turnover increased to Rs. 391886.600 million, mainly due to increase in
volume, prices and sale of value added products. Saleable steel sales
constitute about 94% of total turnover and were higher by 22%. Sales of other
products like coal chemicals, pig iron, etc. were also 7% higher. The company's
main business arena continues to be the domestic market, which provides about
97% of its total sales turnover. Saleable steel exports at 5.13 lakh tonnes
during 2006-07, were lower by about 11%. Export incentives of Rs. 1168.600
million were earned during the year which includes Rs. 812.900 million under
the Duty Free Credit Entitlement Scheme for the exports made in 2003-04.
The company caters to almost the entire gamut of the mild steel business - flat
products in the form of plates, HR coils/sheets, CR coils/sheets,
plain/corrugated galvanised sheets and long products comprising rails,
structurals, wire-rods, merchant products, etc. In addition, electric
resistance welded pipes, spiral welded pipes, electric tin plates and silicon
steel sheets form part of company's rich product-mix.
PROJECT
MANAGEMENT
Major Projects commissioned during 2006-07: Five projects costing Rs.3600
million were commissioned during the year viz. 15 MW Turbo Generator in Power
Plant-1, B-Strand of Wire Rod Mill, Upgradation of BF-7 at Bhilai Steel Plant;
New Normalising Furnace in Plate Mill at Rourkela Steel Plant and Argon Oxygen
Decarburisation (AOD) & High Powered EAF at Alloy Steels Plant. Further,
installation of Bloom Caster (Rs 2710 million) at Durgapur Steel Plant has also
been completed and first heat was taken on 2.4.07. The unit is under
stabilization. Rebuilding of Coke Oven Battery No.1 (Rs.1120 million) at RSP
was lighted up in 2006-07 and production started in May'07.
Major Capital Schemes presently in progress : Capital Projects costing over
Rs.34000 million are under implementation at SAIL Plants. Plantwise major
schemes under implementation include the following :
Bhilai Steel Plant (BSP):
* New Slab Caster, along with RH
Degasser & Ladle Furnace has been taken up for additional casting of 0.165
Mtpa, production of 0.3 Mtpa of API X65/X70 grade steel, processing of
additional Rail Steel demanded by Indian Railway through new RH Degasser and
creating a potential to produce special quality plates especially in high
thickness range (40mm and above).
* Rebuilding of Coke Oven Battery No.5
has been taken up wherein state-of-art pollution control equipment will be
incorporated to achieve the latest statutory emission norms of Ministry of
Environment & Forest.
* Procurement of 4 nos. WDS Locos
scheme is for replacement of 4 nos. Medium HP locos (Russian make) by WDS-6
locos from DLW, Varanasi.
* Hot Metal Desulphurisation Unit at
SMS-II will help in production of low sulphur steel by desulphurisation of hot
metal before steel making to meet the increasing demand for high quality steel,
particularly for application in off-shore, transport and structural
sectors.
* Power supply facilities for 2x1250
tpd Oxygen Plant will help in evacuation of power at 220 KV from Power Plant-3
(2 x 250 MW), which is under construction through NSPCL, a JV company of NTPC
& SAIL, to meet the future power requirement of BSP.
* Main Step Down Station has been
taken up for evacuation of power at 220 KV from new Power Plant-3 to meet the
future power requirement of BSP. Out of 500 MW, allocated share of Power to BSP
is 280 MW.
* Thyrisation of Plate Mill drives -
replacement of old and unreliable MG sets by thyristor converters with
state-of-art digital control to achieve high quality of finished products and
reliability in production.
Durgapur Steel Plant (DSP):
* Bloom Caster with associated facilities including one 130T Ladle Furnace & one 110T/hr Re-heating Furnace is under stabilization which will improve the yield & quality of steel with reduction in energy consumption.
* Coal Dust Injection system in Blast Furnace-3&4 is for reduction in coke rate and improvement of furnace productivity.
*
Augmentation
of Power Distribution System (Phase-I) to meet the additional load for new
capital schemes.
Rourkela Steel Plant
(RSP):
* Rebuilding of Coke Oven Battery No.4
has been taken-up for incorporating state-of-the-art pollution control
equipment to achieve the latest statutory emission norms of Ministry of
Environment & Forests.
* Hot Metal Desulphurisation Unit at
SMS-II will help in production of low sulphur steel by desulphurisation of hot
metal before steel making to meet the increasing demand for high quality steel,
particularly for application in off-shore, transport and structural
sectors.
* Pipe Coating Plant (60,000 tpa
capacity) is under installation to supply coated pipes mainly to the
hydrocarbon sector which would prevent corrosion of pipes.
* Coal Dust Injection system in Blast
Furnace-4 to reduce coke consumption and improvement in blast furnace
productivity.
* Turbo Blower No.5 of CPP-I is being
up-rated with a discharge volume of 1,63,000 NM3/hr at a pressure of 2.3 Kg/cm2
for meeting the high top pressure requirement of Blast Furnaces.
Bokaro Steel Plant
(BSL):
* Rebuilding of Coke Oven Battery No.5
has been taken-up wherein state-of-art pollution control equipment shall be
incorporated.
* Modification/Revamping of Mae West
blocks in Hot Strip Mill has been commissioned partly which will improve the
performance of Hot Strip Mill.
* Existing HCL Regeneration Plant for
Pickling Line-II of CRM is being replaced due to its technical obsolescence to
improve CR products.
* Air Turbo Compressor and Oxygen
Turbo Compressor being replaced to meet higher requirement of production.
* Coal Dust Injection in BF-2&3
system is under installation which will help in reducing coke consumption and
improve BF productivity.
* Computerized Process Control System
of SMS-II shall help in improving the yield and quality of steel.
* Augmentation of storage facilities of
coking coal is under installation which will augment coking coal storage
capacity from 115,000 tonnes to 202,500 tonnes.
* Electro Discharge Texturing Machine
in Roll Grinding & Bearing Shop of CRM has been taken up to improve the
surface finish of Cold Rolled steel with respect to roughness and peak
counts.
* 2nd Ladle Furnace in SMS-II would
facilitate production of value added steels, especially steel grades besides
flexibility in operation.
IISCO Steel Plant
(ISP):
* Upgradation of BF No. 2 has been
taken up to enhance its productivity, increase in useful volume, reduction in
coke rate.
* A new Turbo-Blower is being
installed as a replacement of Turbo-Blower No.4 to meet the enhanced air and
top pressure requirement of BF No.2.
* Rebuilding of pollution compliant
Coke Oven Battery No.10 along with renewal of By-product Plant.
AWARDS
& ACCOLADES
The company's
excellent performance got several recognitions from all quarters during the
year 2006-07 which include awards to individuals : 41 employees were awarded
with 'Government of India's Vishwakarma Rashtriya Puraskar-2005' recognizing
their extraordinary contribution in bringing about laudable improvements in
their areas of work, 10 employees were awarded Shram award - 2004. Your company
became the first Public Sector Undertaking (PSU) to receive 'Business World -
FICCI - SEDF Corporate Social Responsibility Award - 2006', which was presented
by the Hon'ble President of India on 7th May, 2007. Other major awards received
by the company include 'SCOPE Meritorious Award for Environment Excellence and
Sustainable Development' for the year 2004-05, B.M. Munjal Award for
'Excellence in Learning and Development in Public Sector Category' for the year
2006, Golden Peacock : 'Eco Innovation' award - 2006 to BSP, 'National
sustainability' award -2006 to SSP by IIM, 'National safety' award for the
years 2002 & 2003 to RMD (presented by Hon'ble Vice President of India on
14.2.07), 'Rajiv Gandhi National Quality' award - 2006 to BSP by Bureau of
Indian Standards.
Contingent Liabilities
|
|
31.03.2007 |
31.03.2006 |
|
Claim against the company pending appellate / judicial
decisions n Excise Duty n Sales Tax on inter – state Stock
transfers from plants to stockyards n Other Sales Tax matters n Income Tax n Other duties cess and levies n Civil matters n Miscellaneous |
13137.400 11781.800 1217.600 7.100 1599.400 863.400 1720.300 |
11316.000 11451.200 1569.100 24.000 1318.500 861.700 1757.000 |
|
1) No liabilities has taken is expected to arise as sales tax
has been paid on eventual sales 2) includes claims of Rs. 190.100 millions (Rs. 179.000
millions) against which there are counter claims of Rs, 258.200 millions (Rs.
120.700 millions) |
||
|
Other claims against the company not acknowledged as debt:
n Duties, cess and levies n Civil matters n Miscellaneous |
49.100 1511.700 3172.900 |
44.200 992.300 6828.800 |
|
Includes claims of Rs. 558.300 millions (Rs. 734.600
millions) against which there are counter claims of Rs. 508.200 millions (Rs.
626.600 millions) |
||
|
Disputed income tax / service tax demand on joint venture
company for which company may be contingently liable under the joint venture
agreement |
807.000 |
588.800 |
|
Guarantees/counter-guarantees
given to banks/excise authorities on behalf of a subsidiary company and a
joint venture company. |
314.000 |
314.000 |
|
Bills
drawn on customers and discounted with banks. |
170.100 |
238.900 |
|
Price escalation claims by contractors/suppliers and claims
by certain employees, extent whereof is not ascertainable |
||
The company is in trade terms with :
v
Vijayan
& Vijayan Retreading Limited
v
Hydrokrimp
A.C. Private Limited
v
Vijaya
Hot Top Products
v
Vijaya
Industrial Products
v
Pragathi
Industrial Products
v
Ferro
Insulation (Private) Limited
The company
has joint ventures with the following :
v
SAIL,
Bansal Service Centre Limited
v
Metaljunction.Com
Private Limited
v
UEC
SAIL Information Technology Limited
v
North
Bengal Dolomite Limited
v
NTPC SAIL
Power Company Private Limited
v
Bokaro
Power Supply Company Private Limited
v Bhilai Electric Supply Company
Private Limited
The company’s fixed assets of important value include land
(freehold & leasehold), right & patents, railway lines, railway sidings,
roads, bridges, culverts, buildings, plant & machinery, furniture,
fittings, vehicles, water supply & sewerage, EDP equipments and
miscellaneous articles
AS PER WEBSITE
Company Profile
Subject is the leading steel-making company in India. It is
a fully integrated iron and steel maker, producing both basic and special
steels for domestic construction, engineering, power, railway, automotive and
defence industries and for sale in export markets.
Ranked amongst the top ten public sector companies in India
in terms of turnover, SAIL manufactures and sells a broad range of steel
products, including hot and cold rolled sheets and coils, galvanised sheets,
electrical sheets, structural, railway products, plates, bars and rods,
stainless steel and other alloy steels. SAIL produces iron and steel at four
integrated plants and three special steel plants, located principally in the
eastern and central regions of India and situated close to domestic sources of
raw materials, including the Company's iron ore, limestone and dolomite mines.
Subject's wide range of long and flat steel products are
much in demand in the domestic as well as the international market. This vital
responsibility is carried out by Subject's own Central Marketing Organization
(CMO) and the International Trade Division. CMO encompasses a wide network of
38 branch offices and 47 stockyards located in major cities and towns
throughout India.
With technical and managerial expertise and know-how in
steel making gained over four decades, Subject's Consultancy Division (SAILCON)
at New Delhi offers services and consultancy to clients world-wide.
SAIL has a well-equipped Research and Development Centre for
Iron and Steel (RDCIS) at Ranchi which helps to produce quality steel and
develop new technologies for the steel industry. Besides, SAIL has its own
in-house Centre for Engineering and Technology (CET), Management Training
Institute (MTI) and Safety Organization at Ranchi. The captive mines are under
the control of the Raw Materials Division in Calcutta. The Environment
Management Division and Growth Division of SAIL operate from their headquarters
in Calcutta. Almost all our plants and major units are ISO Certified.
Press Release
Steel Minister commissions 3 new
production facilities at Bhilai
New Delhi, November 18, 2006
Union Minister for Chemicals & Fertilizers and Steel Mr.
Ram Vilas Paswan today commissioned three new production facilities set up at a
total cost of Rs. 1870 millions at Bhilai Steel Plant (BSP) of Steel Authority
of India Limited (SAIL). Presently under stabilization, the facilities have
been added as part of subject’s Rs. 37,0000 millions expansion plan that is
currently under implementation. SAIL Chairman Mr S.K. Roongta has accompanied
the Minister on his visit to Bhilai.
Bhilai’s four-strand continuous Wire Rod Mill with the
capacity to produce 0.4 million tones per annum (mtpa) of wire rods from rolled
billets was commissioned in 1967. Strands ‘C’ and ‘D’ had been revamped in
1995. The proposal to revamp the ‘B’ strand at a cost of around Rs. 750
millions was approved by the SAIL Board in December 2004. Modernization of the
strand has provided the Mill with facilities to produce wire rods of TMT grade
and smaller section of 5.5 to 7.0 mm with consistent productivity besides
improving tolerance, ovality and yield of the rods. Morgardshammar AB of Sweden
was the technology supplier for the project that was executed in three
packages. Other companies which participated in the project are BEC Limited of
Bhilai, ABB Limited of Bangalore and HSCL.
The Plate Mill of Bhilai Steel Plant, commissioned in 1983,
is a two-stand continuous mill with capacity to produce 0.95 mtpa of plates in
thicknesses ranging from 5 to 120 mm from cast slabs. The SAIL Board had
approved the proposal for installation of hydraulic automatic gauge control
(HAGC) and plan view rolling (PVR) in Plate Mill at a cost of around Rs. 520
millions in January 2005. The benefits that will accrue to the Mill due to the
new facilities include production of plates with closer thickness tolerances,
achievement of high rectangularity of plates, yield improvement, cropping at
exact length, etc. The project was executed on turnkey basis by Danieli
Automation SpA, Italy along with their consortium member Danieli Engineering
India Limited of Kolkata.
Equipped with three 12 MW turbo-generators, 10 turbo-blowers
and six boilers, Power & Blowing Station (PBS) of BSP meets the captive
power requirements of critical units and supplies air blast to blast furnaces
as well as process steam through steam boilers for meeting the needs of various
shops. The proposal to install a 15 MW turbo-generator at a cost of around Rs.
480 millions, in place of turbo generator # 3 of PBS that had outlived its use,
was approved by the SAIL Board in May 2004.
SAIL shareholders vote
on IISCO’s amalgamation with SAIL
New Delhi, November 8,
2005
Shareholders of the subject exercised their
right of franchise on the scheme of amalgamation of the company’s wholly-owned
subsidiary Indian Iron & Steel Company Limited (IISCO) with subject at an
Extraordinary General Meeting (EGM) held for the purpose at the IAF auditorium
in Subroto Park here this afternoon.
IISCO has an integrated steel plant at Burnpur
in West Bengal and iron ore and coal mines/washeries in Jharkhand and Bengal.
The main products of IISCO are structural, bars & rods and pig iron.
Following the approval of the Government of
India in June 2005, and subsequent clearance given by the Board of Industrial
& Financial Reconstruction (BIFR), to the Ministry of Steel’s proposal for
the amalgamation of IISCO with SAIL, the matter had been referred to the
Ministry of Company Affairs (MoCA) for approval. The MoCA had directed SAIL to
hold its shareholders’ meeting to obtain their consent to the proposed
amalgamation under the provisions of Article 391-94 of the Companies Act, 1956.
It had also nominated Mr V.S. Jain, Chairman, SAIL, as the chairman of the
meeting of the company’s shareholders.
The outcome of the poll will be made public
shortly, when the chairman submits his report to the MoCA. IISCO had emerged
from a long loss-making spell in 2003-04 by recording net profit of Rs. 270 millions.
In 2004-05, the company declared a PAT of Rs. 46.60 millions on a turnover of Rs. 1,4870 millions. The company has 16,218 employees on its rolls as on
1.4.05.
IISCO’s iron ore mines at Chiria in Jharkhand
are rich in quality and quantity. Their strategic location would be
advantageous for SAIL. Availability of large infrastructure facilities with IISCO
will help expansion of capacity. Inter-plant synergy can be better exploited
for improved and complementary product-mix. Moreover, IISCO has experienced
manpower with good work culture. And SAIL has financial and managerial
capabilities that can be pooled for faster growth of SAIL, including IISCO.
Subject has recently approved a plan to invest
around Rs. 8,0000 millions for technological up gradation of IISCO, taking its annual
hot metal production capacity to 2.5 million tones by 2011-12 from the present
level of 0.85 million tones.
Steel Minister
inaugurates Rourkela Steel Plant's Modernisation & Expansion Plan
New Delhi, 4 January 2008
Implementation of the National Steel Policy was put
on a fast track with the Honorable Union Minister for Chemicals &
Fertilisers and Steel, Mr. Ram Vilas Paswan, today laying the foundation stone
for the modernisation and expansion of Rourkela Steel Plant (RSP) of Steel
Authority of India Ltd (SAIL) in the distinguished presence of the Chief Guest
of the ceremony, Honourable Chief Minister of Orissa Mr. Naveen Patnaik, at the
site of the plant's upcoming 5th Blast Furnace.
In his address the Hon'ble Minister said:
"SAIL has chalked out an ambitious plan for nearly doubling its annual
output to 26 million tonnes over the next three years. The SAIL plants are
going in for capacity enhancement as well as modernisation and rationalisation
of production equipment and processes. The expansion of RSP is a key component
of this programme. I am impressed with the tremendous growth achieved by RSP in
its physical as well as the financial performance. For the first time in its
history the plant crossed the 2 million tonne mark in the production of hot
metal during the year 2006-07. This stupendous performance resulted in RSP
registering the best ever net profit of Rs. 13360 million in the same fiscal.
This year I am expecting that RSP will be making more than Rs. 15000 million.
The most significant feature of this achievement is all the major units of RSP
recording more than 100% capacity utilisation on a consistent basis. It is the
dedication and the commitment of the entire RSP collective that has led to this
impressive performance and I take this opportunity to congratulate all of you
for this."
Mr. Paswan also outlined his plans for SAIL By
saying: "It is my vision to make SAIL so strong that it can sustain the
vagaries of the dynamic steel market. We have chalked out a plan for the merger
of some of the steel plants under which IISCO has already by being merged with
SAIL and the next in line are MEL, NINL etc." Elaborating on the vital
role played by raw materials in the performace of SAIL he spoke about the
renewal of the mining leases at Barsua, Taldih and Kalta and requested the
Orissa Chief Minister to sort out the difficulties related to these mines as
outlined by Chairman SAIL and Secretary, Steel. He further urged Mr. Patnaik to
expedite the process of transfer of Thakurani mines to SAIL.
Elaborating on the challenges ahead the
Honourable Minister said, "You have to ensure that the modernisation
programme is completed without any time and cost over runs. The steel
environment has become fully globalised and intensely competitive and unless
SAIL plants internalize these realities and step up their productivity they
will be left behind."
Commenting on Corporate Social Responsibility -
a subject close to his heart - the Minister said, "I am pleased to note
that RSP has adopted 16 villages in the vicinity as model steel villages, in
addition to providing other services in areas like education and health care.
As suggested by the Chief Minister we will be setting up ITIs."
Expressing his immense happiness at the
tremendous dedication and enthusiasm of the RSP collective which had resulted
in the remarkable turnournd of the steel plant the Honourable Minister
announced a special reward of Rs. 2000 for the employees of RSP.
It is significant that the modernisation and
expansion of RSP, which was the first steel plant in the public sector in the
country, will not only increase its production and productivity but will also
improve the quality of products, increase the production of value added steel,
reduce the energy consumption, take care of the environment and cut down the
cost of production. The plan envisages capacity increase to more than double
from the existing 2 million tonnes of hot metal to 4.5 million tonnes. The
modernisation package will help to establish RSP as an important player in the
dynamic steel scenario, besides contributing to progress and prosperity in the
region.
Orissa Chief Minister Mr. Naveen Patnaik
expressed his happiness over the way RSP the biggest industry of Orissa has
contributed in the development and progress of the state as well as improving
the socio-economic condition of the people of Orissa. He expressed the hope
that the steel plant after the massive modernisation will continue to
contribute to the well being of the state and its people and at the same time
will be a pioneer in the steel industry.
Mr. R.S. Pandey, Secretary (Steel), Govt. of
India, informed the gathering that an MoU has been signed between SAIL, RINL,
CIL, NTPC and NMDC to jointly promote a Special Purpose Vehicle for acquisition
of coal mines/properties. "Consumption of steel is outsripping production,
making India a steel importing country and with the implementation of the Steel
Policy initiatives the country is expected to become a steel exporting
country."
Mr. S.K. Roongta, Chairman, SAIL, in his address
said: "RSP which is known for its versatile products has shown a
commendable performance. Now the steel plant has a big challenge of
implementing its modernisation and expansion plan by 2010 which includes
installation of a new sinter plant, new blast furnace of higher volume of 4060
cubic meters new plate mill and new CRNO mill."
Mr. Jual Oram, MP, Sundargarh, and Mr.
R.C.Paswan, MP, Rozera, Bihar, also spoke on the occasion and express the hope
that the modernisation and expansion would usher in a new era of progress and
prosperity.
Mr. B.N.Singh, RSP Managing Director, while
proposing a vote of thanks expressed his gratitude to the Honourable Minister
and Honourable Chief Minister for gracing the occasion and inspiring the
Rourkelites. Outlining the SAIL's vision for RSP he said," RSP is already
on the track for achieving 4.5 million tonnes and would move to achieving 8.5
million tonne capacity in the next phase."
Earlier, in an informal interaction with the
members of the media, Mr. Paswan said, "RSP was incurring losses
continuously for about ten years till 2003-04. I am happy to announce that
today it is a high profit making company. During the tenure of the UPA
government in the last three years it has made a profit of Rs. 3,500 crore. I
wish to thank the RSP collective and Government of Orissa for providing support
and making this achievement possible."
Commenting on the future of the steel industry
in general and SAIL in particular the Honourable Minister said, " The Government
is planning to invest Rs. 3.5 lakh crore in the steel industry by 2014-15 and
Rs. 8 lakh crore by 2020, making India the second largest producer in the
world. The expansion plans of SAIL to the tune of around Rs. 50,000 crore would
increase the capacity of SAIL from 14.6 million tonnes per annum of hot metal
production to 26 million tonnes by 2010. I am also hopeful that the Jharkhand
Government would take steps to expedite the handing over of the Chiria mines to
SAIL."
In response to a query the Hon'ble Minister said
he had asked all the steel plants under SAIL to invest 2% of the profit on
Corporate Social Responsibility activities clearly underscoring the immense
importance he pays to CSR initiatives. Answering a question on how he assessed the
performance of SAIL Honourable Minister said, "SAIL is one of the best
organisations in the country and its performance is even better than the
companies in the private sector."
Branches /
Sales Offices :
Agra
Ispat Bhavan 85/4, Sanjay Place,
Agra - 282 002, Uttar Pradesh
Phone:91-562-2520860/2520541
Fax:91-562-2350708
E-mail:bmagr@sail-steel.com
Allahabad
Ispat Bhavan 22-A, Muir Road, Allahabad - 211 002,
Uttar Pradesh, India
Phone : 91-532-2605647.
Fax: 91-532-2606906.
E-mail: bmall@sail-steel.com
Chandigarh
ISCO 27 Sector 26, Madhya Marg, Chandigarh - 160 019,
India
Phone: 91-172-2772882, 2772899, 2772901
Fax: 91-172-2549184
E-mail: bmcha@sail-steel.com
Faridabad
Gobind Bhawan, Neelam Chowk, NIT, Faridabad -
121 001, Haryana, India
Phone: 91-129-2541 5727, 2541 9166.
Fax: 91-129-2541 6647.
E-mail: bmfar@sail-steel.com
Ghaziabad
GDA
Commercial Complex, 1st Floor, Navyug Market, Ghaziabad - 201
001, Uttar Pradesh, India
Phone: 91-120-2479 0020, 2479 0042, 2479 0171 (FP), 2479 1317 (LP)
Fax: 91-120-2479 0262
E-mail: bmghafp@sail-steel.com
Jalandhar City
JCC Bank
Building, 2nd Floor, Opposite GPO, GT Road, Jalandhar City -
144 001, Punjab, India
Phone: 91-181-222 4019, 222 4207, 222 4198, 222 4264, 222 2753
Fax: (91-181-222 4227
E-mail: bmjal@sail-steel.com
Jammu
OB-24, Railhead, Commercial Complex, Near
Panama Chowk, Jammu - 180 004, Himachal Pradesh, India
Phone: 91-191-243 0504
Fax: 91-191-243 2964
E-mail: bmjam@sail-steel.com
Kanpur
16/98
Mahatma Gandhi Marg, LIC Building, 4th Floor, Kanpur - 208 001,
Uttar Pradesh, India
Phone: 91-512-231 2146
Fax: 91-512-231 2148
E-mail: bmkan@sail-steel.com
Lucknow
PICUP
Bhawan, North West Block, 2nd Floor, Gomti Nagar, Lucknow - 226
010, Uttar Pradesh, India
Phone: 91-522-239 1961, 239 3876
Fax: 91-522-239 2994
E-mail: bmluc@sail-steel.com
Ludhiana
Dhyan Singh
Complex, 2nd Floor, Opposite Bus Stand, Ludhiana - 141 001, Punjab,
India
Phone: 91-161-244 8506, 244 8507.
Fax: 91-161-244 8191.
E-mail: bmlud@sail-steel.com
Mandi Gobindgarh
GT Road,
Mandi, Gobindgarh - 147 301, India
Phone: 91-1765-255351, 252397
Fax : 91-1765-255347
E-mail: bmman@sail-steel.com
New Delhi
Jeevan
Deep, 10 Sansad Marg, New Delhi-110 001, India
Phone: 91-11-2336 1950, 2336 1596, 2336 1951, 2336 1797.
Fax: 91-11-2373 2602
E-mail: bmdel@sail-steel.com
Bhubaneshwar
271 Bidyut
Marg, Unit 4, Shastri Nagar, Bhubaneshwar - 751 001, Orissa, India
Phone 91-674-240 3921
Fax: 91-674-240 5026.
E-mail: bmbhu@sail-steel.com
Bokaro
Ispat
Bhavan, CMO Complex, Mahatma Gandhi Road, Near Administrative Building, Bokaro
Steel City - 827 001
Phone:
91-6542-246439.
Fax: 91-6542-240856.
E-mail: bmbok@sail-steel.com
Kolkata
4 India
Exchange Place, 5th Floor, Kolkata - 700 001, West Bengal
Phone: 91-33-2220 439, 2220 4392, India
Fax: 91-33-2220 3761, 2220 3649.
E-mail: bmcalfp@sail-steel.com
bmcallp@sail-steel.com
Dimapur
Circular Road, Opposite Holy Cross
School, Dimapur - 797 112
Phone: 91-3862-221979 / 226540.
Durgapur
Surya Sen
Sarani, Durgapur - 713 208
Phone: 91-343-254 5932, 254 5975
Fax: 91-343-254 5934
E-mail: bmdur@sail-steel.com
Guwahati
Ispat Bhavan, H.P. Bramhachari Road, Paltan
Bazar, Guwahati - 781 008, Assam, India
Phone: 91-361-254 2756, 254 5260, 254 7662, 252 2401.
Fax:
91-361-254 1519.
E-mail: bmguw@sail-steel.com
Patna
Luv Kush
Tower, 5th Floor, Exhibition Road, Patna - 800 001, Bihar,
India
Phone 91-612-266 7611-12.
Fax: 91-612-266 7674.
E-mail: bmpat@sail-steel.com
Rourkela
F-10,
Sector-2, Rourkela - 769 006
Phone: 91-661-257 2421, 257 2789
Fax: 91-661-257 2367
E-mail: bmrou@sail-steel.com
Ahmedabad
GHB
Complex, 1st Floor, Ankur, Naranpura, Ahmedabad - 380 013,
Gujarat, India
Phone: 91-79-748 2063, 748 2064
Fax: 91-79-747 2570, 745 6894
E-mail: bmahmfp@sail-steel.com
Baroda
Marble
Arch, 8th Floor, Race Course Circle, Baroda - 390 007, Gujarat,
India
Phone: 91-265-233 3840, 233 1590.
Fax: 91-265-233 8341.
E-mail: bmbar@sail-steel.com
Bhilai
Equipment Chowk, Sector-1, Road-1, Bhilai-
490 001, Madhya Pradesh, India
Telephone: 91-788-235 8622, 289 3173, 243 6060
Fax: 91-788-222 0389
E-mail: bmbhi@sail-steel.com
Gwalior
Gulati
Sadan, Moti Mahal Road, Padav, Gwalior - 474 002, Madhya Pradesh,
India
Phone: 91-751-232 4838, 233 6028.
Fax: 91-751-232 4837.
E-mail: bmgwa@sail-steel.com
Indore
Arcade
Silver 56, 3rd Floor, 1 New Palasia, Indore - 452 001, Madhya
Pradesh, India
Phone: 91-731-243 4774, 254 3459, 226 6774-5.
Fax:
91-731-243 2689.
E-mail: bmind@sail-steel.com
Jabalpur
500
Marhatal, Jabalpur - 482 002, Madhya Pradesh, India
Phone: 91-761-231 0682, 231 1199
Fax: 91-761-231 0741
E-mail: bmjab@sail-steel.com
Jaipur
Anand
Bhawan, 1st Floor, S.C.Road, Jaipur - 302 001, India
Phone: 91-141-237 2434, 237 2435
Fax: 91-141-236 5697
E-mail: bmjai@sail-steel.com
Kota
New LIC
Building, 17 Jhalwar Road, Chhauni Choraha, Kota - 32 4007, Rajasthan,
India
Phone:
91-744-245 0127, 232 6722
Fax: 91-744-245 0192
E-mail: bmkot@sail-steel.com
Mumbai
Swastik
Chambers, 1st Floor, Sion Trombay Road, Chembur, Mumbai - 400
071, Maharashtra, India
Telephone: 91-22-2522 9593-94, 2522 9596-99
Fax:
91-22-2522 6935, 2522 4718
E-mail: sailbsomumbai@vsnl.net,
Nagpur
Shree Mohini Complex, 345, S.V.Patel
Marg, Nagpur - 440 001, Maharashtra, India
Phone:
91-712-253 5734, 252 4276, 252 2103
Fax: 91-712-253 2554
E-mail: bmnag@sail-steel.com
Pune
Savarkar
Udyog Bhavan, 2nd Floor, Congress House Road, Shivaji
Nagar,
Pune - 411 005, Maharashtra, India
Phone: 91-20-2553 4109, 2553 3408, 2553 3509
Fax:
91-20-2553 8054, 2553 9548.
E-mail: bmpun@sail-steel.com,
Bangalore
Shankarnarayana
Building, 2nd Floor, 25 Mahatma Gandhi Road, Bangalore - 560 001,
Karnataka, India
Phone: 91-80-558 4389, 558 4353, 558 4098
Fax: 91-80-558 4382
E-mail: bmban@sail-steel.com
Belgaum
Shanbhag
Chambers, 4th Floor, Kirloskar Road, Belgaum - 590 002
Phone: 91-831--242 3529
Fax: 91-831-242 7148
Chennai
Ispat
Bhavan, 2 Kodambakkam High Road, Chennai - 600 034, Tamilnadu, India
Phone: 91-44-2827 2091, 2827 3878, 2827 4123 (FP), 2827 8885 (LP)
Fax: 91-44-2827 1989
E-mail: bmmad@sail-steel.com
Coimbatore
Cheran
Towers, 2nd Floor, 6/25 Arts College Road, Coimbatore - 641 018,
India
Phone: 91-422-221 3526, 221 5527.
Fax : 91-422-221 4728.
E-mail: bmcoi@sail-steel.com
Hyderabad
5-9-13,
Tara Mandal, 9th Floor, Saifabad, Hyderabad - 500 004, Andhra
Pradesh, India
Phone: 91-40-2324 0680, 2324 0686, 2324 0687
Fax: 91-40-2323 7937
E-mail: bmsec@sail-steel.com
Kochi
GCDA Commercial
Complex, 3rd Floor, Shanmugham Road, Marine Drive, Kochi -
682 031, Kerala, India
Phone: 91-484-235 5605, 235 5025
Fax: 91-484-238 1069
E-mail: bmcoc@sail-steel.com
Tiruchirapalli
Esspee
Complex, 52 Heber Road, Cantonment, Tiruchirapalli - 620 001
Phone: 91-431-241 4220, 241 4223
Fax: 91-431-241 0137
E-mail: bmtri@sail-steel.com
Vijayawada
GVR Towers,
1st Floor, Opp. Vinayaka Theatre, Bharathi Nagar, Ring Road,
Vijayawada - 520 008, Andhra Pradesh, India
Phone: 91-866-254 5842, 254 5816, 254 5817, 254 1587
Fax: 91-866-254 2719
E-mail: bmvij@sail-steel.com
Visakhapatnam
Plot No.
39, Opp. R.K.Beach, Beach Road, Visakhapatnam - 530 003, Andhra
Pradesh, India
Phone: 91-891-256 6124 (LP), 270 1171
(LP), 256 6250 (FP)
Fax: 91-891-256 6243
E-mail: bmvizfp@sail-steel.com,
bmvizlp@sail-steel.com
CMT REPORT [Corruption, Money laundering &
Terrorism]
The Public Notice information has been collected from
various sources including but not limited to: The Courts, India Prisons
Service, Interpol, etc.
1] INFORMATION ON DESIGNATED PARTY
No
records exist designating subject or any of its beneficial owners, controlling
shareholders or senior officers as terrorist or terrorist organization or whom
notice had been received that all financial transactions involving their assets
have been blocked or convicted, found guilty or against whom a judgement or
order had been entered in a proceedings for violating money-laundering,
anti-corruption or bribery or international economic or anti-terrorism sanction
laws or whose assets were seized, blocked, frozen or ordered forfeited for
violation of money laundering or international anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that
subject is or was the subject of any formal or informal allegations,
prosecutions or other official proceeding for making any prohibited payments or
other improper payments to government officials for engaging in prohibited
transactions or with designated parties.
3] Asset Declaration :
No
records exist to suggest that the property or assets of the subject are derived
from criminal conduct or a prohibited transaction.
4] Record on Financial Crime :
Charges or
conviction registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l Anti-Money
Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No available information
exist that suggest that subject or any of its principals have been formally
charged or convicted by a competent governmental authority for any financial
crime or under any formal investigation by a competent government authority for
any violation of anti-corruption laws or international anti-money laundering
laws or standard.
8] Affiliation with Government :
No record exists to
suggest that any director or indirect owners, controlling shareholders,
director, officer or employee of the company is a government official or a
family member or close business associate of a Government official.
9] Compensation Package :
Our market survey
revealed that the amount of compensation sought by the subject is fair and
reasonable and comparable to compensation paid to others for similar services.
10] Press Report
:
No press reports / filings exists on the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments
on Corporate Governance to identify management and governance. These factors
often have been predictive and in some cases have created vulnerabilities to
credit deterioration.
Our Governance Assessment focuses principally on the
interactions between a company’s management, its Board of Directors,
Shareholders and other financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local
laws, regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs. 39.29 |
|
UK Pound |
1 |
Rs. 77.02 |
|
Euro |
1 |
Rs. 58.16 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
9 |
|
PAID-UP
CAPITAL |
1~10 |
9 |
|
OPERATING
SCALE |
1~10 |
9 |
|
FINANCIAL
CONDITION |
|
|
|
--BUSINESS
SCALE |
1~10 |
10 |
|
--PROFITABILIRY |
1~10 |
8 |
|
--LIQUIDITY |
1~10 |
9 |
|
--LEVERAGE |
1~10 |
9 |
|
--RESERVES |
1~10 |
9 |
|
--CREDIT
LINES |
1~10 |
9 |
|
--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 |
|
81 |
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/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 |