MIRA
INFORM REPORT
|
Report Date : |
02.07.2011 |
IDENTIFICATION DETAILS
|
Name : |
the state trading corporation of india
limited |
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Registered Office : |
Jawahar Vyapar Bhawan, Tolstoy Marg, |
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Country : |
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Financials (as on) : |
31.03.2010 |
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Date of Incorporation : |
18.05.1956 |
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Com. Reg. No.: |
2674 |
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Paid up Capital : |
Rs. 600.000 Millions |
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CIN No.: [Company
Identification No.] |
L74899DL1956GOI002674 |
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IEC No.: |
0588094412 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
DELS00861A |
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PAN No.: [Permanent
Account No.] |
AAACT0102F |
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Legal Form : |
Public Limited Liability Company. The Company’s Share are Listed on Stock
Exchanges Government of |
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Line of Business : |
Subject is the official canalizing agency for exports and imports for
a number of products. |
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No. of Employees : |
Approximately 890 |
RATING & COMMENTS
|
MIRA’s Rating : |
A (63) |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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|
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 |
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Maximum Credit Limit : |
USD 26000000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a Government of India Owned Company. It is a well
established and a reputed company having fine track. Financial position of
the company appears to be sound. Fundamentals are strong and healthy. Trade
relations are reported as fair. Business is active. Payments are reported to
be regular and as per commitments. The company can be considered normal for business dealings at usual
trade terms and conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – April 1, 2010
|
Country Name |
Previous Rating (31.12.2009) |
Current Rating (01.04.2010) |
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|
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
INFORMATION PARTED BY
|
Name : |
Mr. Surender kumar |
|
Designation : |
Chief General Manager |
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Contact No.: |
91-9818393010 |
LOCATIONS
|
Registered Office : |
Jawahar Vyapar Bhawan, Tolstoy Marg, |
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Tel. No.: |
91-11-23313177 |
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Fax No.: |
91-11-23701191 / 23701123 |
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E-Mail : |
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Website : |
http://www.stc.gov.in |
|
Location : |
Owned |
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Branch Offices : |
Located At: · Mumbai · Kolkata · Chennai · Ahmedabad ·
·
· Jalandhar ·
·
· Gandhidham ·
·
· Jaipur ·
·
|
DIRECTORS
AS ON 31.03.2010
|
Name : |
Mr. N. K. Mathur |
|
Designation : |
Chairman and Managing Director |
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Name : |
Mr. N. K. Nirmal |
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Designation : |
Director – Finance |
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Name : |
Mr. S. S. Roy Burman |
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Designation : |
Director – Marketing |
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Name : |
Mr. M. M. Sharma |
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Designation : |
Director – Personal |
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Name : |
Mr. Khaleel Rahim |
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Designation : |
Director – Marketing |
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Name : |
Mr. P. K. Chaudhery |
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Designation : |
Non Executive (Government Nominee) Director |
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Name : |
Dr. S. Behuria |
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Designation : |
Non Executive (Government Nominee) Director |
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Name : |
Dr. B. Kinnera Murthy |
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Designation : |
Part Time Non Office Director |
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Name : |
Mr. Jayendra N Shah |
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Designation : |
Part Time Non Office Director |
KEY EXECUTIVES
|
Name : |
Mr. A. K. Gupta |
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Designation : |
Company Secretary |
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|
Name : |
Mr. P. K. Chaudhery |
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Designation : |
Additional Secretary, Department of Commerce, Ministry of Commerce and
Industry, Government of |
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Name : |
Mr. Rajan Katoch |
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Designation : |
Additional Secretary and Financial Advisor, Departments of Commerce,
Ministry of Commerce and Industry, Government of |
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Name : |
Dr. S D Gangwar |
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Designation : |
Chief Vigilance Officer |
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Name : |
Mr. B Majumdar Datta |
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Designation : |
Chief General Manager |
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Name : |
Mr. Arun Kajla |
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Designation : |
Chief General Manager |
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Name : |
Mr. Ashok Kalra |
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Designation : |
Chief General Manager |
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Name : |
Mr. Manoj Mishra |
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Designation : |
Chief General Manager |
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Name : |
Mr. |
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Designation : |
Chief General Manager |
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Name : |
Mr. Sameer Kaul |
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Designation : |
Chief General Manager- In Charge |
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Name : |
Mr. B K Tuli |
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Designation : |
Chief General Manager- In Charge |
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Name : |
Mr. R B Dhawan |
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Designation : |
General Manager |
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Name : |
Mr. K R Goel |
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Designation : |
General Manager |
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Name : |
Mr. N A N Jeykumar |
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Designation : |
General Manager |
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Name : |
Mr. N S Rajguru |
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Designation : |
General Manager |
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Name : |
Mr. B B Saha |
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Designation : |
General Manager |
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Name : |
Mr. SP Lakpa |
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Designation : |
General Manager |
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Name : |
Mr. Rakesh Kumar Gogia |
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Designation : |
Company Secretary |
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Name : |
Mr. K N Agarwal |
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Designation : |
Joint General Manager |
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Name : |
MNr. K A Chawla |
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Designation : |
Joint General Manager |
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Name : |
Mr. K J Datta |
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Designation : |
Joint General Manager |
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Name : |
Mr. K N Juneja |
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Designation : |
Joint General Manager |
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Name : |
Mr. T Karketta |
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Designation : |
Joint General Manager |
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Name : |
Mr. L R Kaushal |
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Designation : |
Joint General Manager |
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Name : |
Mr. C R Malhotra |
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Designation : |
Joint General Manager |
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Name : |
Mr. P D Mishra |
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Designation : |
Joint General Manager |
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Name : |
Mr. K A Sekhri |
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Designation : |
Joint General Manager |
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Name : |
Mr. Hari Singh |
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Designation : |
Joint General Manager |
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Name : |
Mr. Vijay Bhushan |
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Designation : |
Joint General Manager |
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Name : |
Mr. V K Bhatia |
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Designation : |
Deputy General Manager |
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Name : |
Mr. Bhim Sain |
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Designation : |
Deputy General Manager |
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Name : |
Mr. Pawan Gupta |
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Designation : |
Deputy General Manager |
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Name : |
Mr. L K Jain |
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Designation : |
Deputy General Manager |
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Name : |
Mrs. Vinod Kalra |
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Designation : |
Deputy General Manager |
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Name : |
Mr. C S Karki |
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Designation : |
Deputy General Manager |
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Name : |
Mr. Kumar Pratham |
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Designation : |
Deputy General Manager |
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Name : |
Mr. S K Meena |
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Designation : |
Deputy General Manager |
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Name : |
Mr. S C Monton |
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Designation : |
Deputy General Manager |
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Name : |
Mr. R L Narasimham |
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Designation : |
Deputy General Manager |
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Name : |
Mr. S B Negi |
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Designation : |
Deputy General Manager |
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Name : |
Mr. T Ramakrishna |
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Designation : |
Deputy General Manager |
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Name : |
Mr. Ramesh Chander |
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Designation : |
Deputy General Manager |
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Name : |
Mr V L Sachdeva |
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Designation : |
Deputy General Manager |
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Name : |
Mrs. Sadhvi Sethi |
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Designation : |
Deputy General Manager |
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Name : |
Mr. S K Singhal |
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Designation : |
Deputy General Manager |
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Name : |
Mr. D MN Sharma |
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Designation : |
Deputy General Manager |
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|
Name : |
Mr. Vinod Sharma |
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Designation : |
Deputy General Manager |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 31.03.2011
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
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|
54,613,600 |
91.02 |
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|
54,613,600 |
91.02 |
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|
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Total shareholding of Promoter and Promoter Group (A) |
54,613,600 |
91.02 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
94,397 |
0.16 |
|
|
550 |
-- |
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|
696,210 |
1.16 |
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|
40,095 |
0.07 |
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|
831,252 |
1.39 |
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|
|
|
|
|
1,015,860 |
1.69 |
|
|
|
|
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|
3,213,016 |
5.36 |
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|
258,708 |
0.43 |
|
|
67,564 |
0.11 |
|
|
2,150 |
- |
|
|
64,564 |
0.11 |
|
|
900 |
-- |
|
|
4,555,148 |
7.59 |
|
Total Public shareholding (B) |
5,386,400 |
8.98 |
|
Total (A)+(B) |
60,000,000 |
100.00 |
|
(C) Shares held by Custodians and against which Depository Receipts
have been issued |
- |
- |
|
|
- |
- |
|
|
- |
- |
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|
- |
- |
|
Total (A)+(B)+(C) |
60,000,000 |
100.00 |
(1) Indian
Central Government / State Government(s)
Individual shareholders holding nominal
share capital up to Rs. 1 lakhBUSINESS DETAILS
|
Line of Business : |
Subject is the official canalizing agency for exports and imports for
a number of products. |
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Products : |
Generic Names of principal Products of Company
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Terms : |
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Selling : |
L/C, Cash and Creditm(60 days) |
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Purchasing : |
L/C and Credit (90 days) |
GENERAL INFORMATION
|
Customers : |
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No. of Employees : |
Approximately 890 (In office 482 + In Branch 398) |
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Bankers : |
State Bank of |
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Facilities : |
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Banking
Relations : |
- |
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Auditors : |
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Name : |
Chandilok and Guliani and Company Chartered Accountant |
|
Address: |
C-44, Nizamuddin (East), |
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Tel No.: |
91-11-243539676/0860 |
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Fax No.: |
91-11-24530457 |
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|
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|
Associates/Subsidiaries : |
STCL Limited (Formerly Spices Trading Corporation Limited) |
CAPITAL STRUCTURE
As on 31.03.2010
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
200000000 |
Equity Shares |
Rs. 10 /- each |
Rs.2000.000 Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
60000000 |
Equity Shares |
Rs. 10 /- each |
Rs. 600.000 Millions |
Of the above:
58000000 equity shares of Rs. 10 /- each
allotted as fully paid up by way of Bonus Shares by capitalization of General
Reserve.
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
600.000 |
600.000 |
600.000 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
5839.430 |
5102.857 |
4648.853 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
6439.430 |
5702.857 |
5248.853 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
20583.286 |
17100.390 |
10914.298 |
|
|
2] Unsecured Loans |
4095.234 |
6672.821 |
72.306 |
|
|
TOTAL BORROWING |
24678.520 |
23773.211 |
10986.604 |
|
|
DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
31117.950 |
29476.068 |
16235.457 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
549.551 |
301.729 |
317.784 |
|
|
Capital work-in-progress |
0.000 |
74.700 |
0.000 |
|
|
|
|
|
|
|
|
INVESTMENT |
30.304 |
30.304 |
907.217 |
|
|
DEFERREX TAX ASSETS |
734.053 |
611.736 |
528.560 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
5670.127
|
14637.395
|
6476.213 |
|
|
Sundry Debtors |
66109.635
|
55585.258
|
57838.031 |
|
|
Cash & Bank Balances |
4868.274
|
6565.998
|
3940.915 |
|
|
Other Current Assets |
0.000
|
0.000
|
0.000 |
|
|
Loans & Advances |
5835.736
|
7386.753
|
3199.656 |
|
Total
Current Assets |
82483.772
|
84175.404
|
71454.815 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
19781.590
|
|
55816.631 |
|
|
Other Current Liabilities |
30203.877
|
29878.654
|
|
|
|
Provisions |
2694.263
|
1691.964
|
1156.288 |
|
Total
Current Liabilities |
52679.730
|
55717.805
|
56972.919 |
|
|
Net Current Assets |
29804.042
|
28457.599
|
14481.896 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
31117.950 |
29476.068 |
16235.457 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
|
SALES |
|
|
|
|
|
|
|
Sales Turnover |
215086.536 |
197858.388 |
157741.261 |
|
|
|
Other Income |
5057.559 |
3511.700 |
503.571 |
|
|
|
Interest Income |
2580.985 |
2827.177 |
1345.485 |
|
|
|
Miscellaneous Income |
419.686 |
321.818 |
314.773 |
|
|
|
TOTAL (A) |
223144.766 |
204519.083 |
159905.090 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of Goods Sold |
218698.562 |
200239.479 |
156302.315 |
|
|
|
Overheads |
1317.269 |
1493.086 |
1002.148 |
|
|
|
Write – Offs |
33.599 |
0.012 |
0.264 |
|
|
|
Provision against doubtful receivables and
investments |
135.071 |
238.028 |
207.189 |
|
|
|
Prior Period Adjustment |
22.346 |
91.738 |
0.000 |
|
|
|
Other Expenses |
0.000 |
0.000 |
(7.896) |
|
|
|
TOTAL (B) |
220206.847 |
202062.343 |
157504.020 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
2937.919 |
2456.740 |
2401.070 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
1204.010 |
984.220 |
614.186 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
1733.909 |
1472.520 |
1786.884 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
24.590 |
23.828 |
21.810 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
1709.319 |
1448.692 |
1765.074 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
639.832 |
663.596 |
520.525 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
1069.487 |
785.096 |
1244.549 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
1497.810 |
1297.593 |
NA |
|
|
|
|
|
|
|
|
|
|
Transfer from Bonus Reserve |
0.040 |
0.041 |
NA |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to Bonus Reserve |
0.011 |
0.013 |
|
|
|
|
Interim Dividend |
150.000 |
150.000 |
|
|
|
|
Proposed Dividend |
135.000 |
135.000 |
|
|
|
|
Dividend Tax |
47.914 |
46.092 |
NA |
|
|
|
Export Import Contingency Reserve |
198.010 |
173.815 |
|
|
|
|
Transfer to Exchange fluctuation Reserve |
0.000 |
28.668 |
|
|
|
|
Transfer to General Reserve |
115.000 |
80.000 |
|
|
|
BALANCE CARRIED
TO THE B/S |
1921.402 |
1497.810 |
NA |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export Earnings |
|
19862.065 |
35616.255 |
|
|
|
Other Earnings |
NA |
2.966 |
0.000 |
|
|
TOTAL EARNINGS |
NA |
19865.031 |
35616.255 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
|
|
156822.879 |
111421.204 |
|
|
|
Interest |
|
3.015 |
2.806 |
|
|
|
Training |
|
0.776 |
0.582 |
|
|
|
Foreign office expenses |
|
0.000 |
0.206 |
|
|
|
Traveling |
NA |
5.966 |
5.792 |
|
|
|
Agency Commission |
|
2.671 |
0.496 |
|
|
|
Books and Periodically |
|
0.633 |
0.428 |
|
|
|
Others |
|
12.729 |
0.867 |
|
|
TOTAL IMPORTS |
NA |
156848.669 |
111432.381 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
17.82 |
13.08 |
20.74 |
|
QUARTERLY /
SUMMARISED RESULTS (UNAUDITED)
(Rs.
In Millions)
|
PARTICULARS |
30.06.2010 (1st
Quarter) |
30.09.2010 (2nd
Quarter) |
31.12.2010 (3rd
Quarter) |
31.03.2011 (4th
Quarter) |
|
Net Sales |
379.580 |
540.390 |
54329.300 |
59788.400 |
|
Total Expenditure |
350.440 |
505.770 |
53826.500 |
59218.200 |
|
PBIDT (Excl OI) |
29.140 |
34.620 |
502.800 |
570.200 |
|
Other Income |
0.220 |
0.290 |
107.900 |
107.800 |
|
Operating Profit |
29.360 |
34.920 |
610.700 |
678.000 |
|
Interest |
5.580 |
8.840 |
526.400 |
316.300 |
|
Exceptional Items |
0.000 |
0.000 |
0.000 |
0.000 |
|
PBDT |
23.780 |
26.080 |
84.300 |
361.700 |
|
Depreciation |
18.550 |
18.720 |
7.200 |
7.800 |
|
Profit Before Tax |
5.230 |
7.370 |
77.100 |
353.900 |
|
Tax |
1.040 |
1.470 |
25.000 |
169.900 |
|
Provisions and contingencies |
0.000 |
0.000 |
0.000 |
0.000 |
|
Profit After Tax |
4.190 |
5.900 |
52.100 |
184.000 |
|
Extraordinary Items |
0.000 |
0.000 |
0.000 |
0.000 |
|
Prior Period Expenses |
0.000 |
0.000 |
0.000 |
0.000 |
|
Other Adjustments |
0.000 |
0.000 |
0.000 |
0.000 |
|
Net Profit |
4.190 |
5.900 |
52.100 |
184.000 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
PAT / Total Income |
(%) |
0.48
|
0.38 |
0.78 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
0.77
|
0.73 |
1.12 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
2.06
|
1.71 |
2.46 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.27
|
0.25 |
0.34 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
12.01
|
13.94 |
12.95 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.57
|
1.51 |
1.25 |
LOCAL AGENCY FURTHER INFORMATION
OPERATIONS AND
BUSINESS PERFORMANCE
During 2009-10,
the company achieved the highest ever turnover of Rs.215090 millions in spite
of the continued adverse impacts of global economic slowdown on country's
foreign trade. The growth was mainly attributable to higher imports of items
such as bullion, hydrocarbons, minerals and metals, petrochemicals, etc.
During the period
, STC also registered a 36% increase in the net profit earned over the previous
year.
MANAGEMENT DISCUSSION
and ANALYSIS REPORT
WORLD ECONOMIC
OVERVIEW
The world economy
recovered stronger in 2009 than was expected after the financial crisis of
2008. Global activity improved at varying speeds in different economies,
tepidly in many of the advanced economies but solidly in most emerging and
developing economies.
The advanced
economies including the
economies, the
high unemployment,
large fiscal deficits, unhealed financial systems and weak household balance
sheets continue to present challenges.
Certain fiscal
difficulties developed in
The emerging and
developing economies are forecasted to grow at 6.8 percent in 2010 as against
2.4 per cent in
2009. This growth
process is led by key Asian emerging economies.
However, emerging
and developing economies like India, China and South East Asian nations were
hit by the adverse consequences of commodity prices and the negative impact on the
confidence of the financial sector that flow from the continuation of massive
expansionary fiscal and monetary policies in the advanced economies,
particularly issues of reserve currency.
The economic
fallout of the global crisis on the CIS has been intense and is weighing
heavily on the region's economic outlook.
OVERVIEW OF INDIAN
ECONOMY
The Indian economy,
after weathering the global financial turbulence reasonably well in 2008-09,
registered an overall growth of 7.4 per cent in 2009-10 as against 6.7 percent
in 2008-09. Though the agriculture and the services sectors grew at rates lower
than 2008-09, the industry sector recorded a growth of 9.3 percent as against
3.9 percent in
2008-09.
The food grain
production in 2009-10 is estimated to be 218.19 million tonne, which is 16.3
million tonne lower than the output in 2008/09. Rice output was 9.9 million tonne
less than that of last year. Coarse cereal production
suffered a large
hit, which was largely due to the poor monsoon. Though the output of pulses was
marginally better than that of last year, the availability of pulses was
inadequate given the level of domestic demand and the limited availability of
certain kinds of domestically popular pulses in the international market.
Oilseeds output was also lower by 5 per cent, compared to last year, primarily
on account of lower groundnut production. Sugarcane output was lower by 3.6 per
cent compared to last year and 18 percent compared to year before last. The
large shortfall in sugarcane production for two consecutive years has led to a
big gap between demand and domestic production of sugar.
The Indian
industry sector witnessed an impressive recovery in the second half of 2009-10
due to restoration of normality in operating conditions. The index for 6 core
industries (comprising crude oil, petroleum refinery products, coal,
electricity, cement and finished carbon steel) grew at 5.5 per cent in 2009-10
compared to 3.0 per cent in 2008-09.
Mining and
Manufacturing output stole the show in industry sector by exhibiting a growth
of 10.6 percent and 10.8 percent respectively in 2009-10 as against a meager
1.6% and 3.2% in 2008-09. The mining sector bounced back following substantial
increase in production of crude oil, natural gas and coal. However, the various
increases achieved were less significant than they appeared to be because the
lower base helped present better picture.
Exports after
reaching their lowest point in the last quarter of 2008-09, started improving
since July, 2009 and registered strong growth in the second half of 2009-10.
The value of exports for the year 2009-10 managed to reach US$ 177 billion.
However, the same were still lower than exports of US$ 185 billion in 2008-09.
The value of
STC'S PERFORMANCE
The year 2009-10
was a landmark year for the company in which it could achieve the highest ever
turnover of over Rs.215000 millions reflecting a growth of 9% over previous
year. The net profit also reflected a spectacular increase by registering a
growth of 36%.
TURNOVER
The record
turnover of Rs.215090 millions achieved during 2009-10 is all the more
significant in light of the ongoing adverse impact of global economic slowdown
which resulted in a decline of about 7% in
SEGMENT-WISE
PERFORMANCE
Exports
During the year,
the Corporation continued its efforts to increase exports which were severally
affected due to continuing global meltdown and deliberate decision of the Corporation
to stop export of some items in view of the high volatility in prices
experienced in these items. Non-availability of a number of agricultural
commodities such as wheat, rice, sugar, etc. for exports due to domestic
shortages further restricted recovery in exports. Major
areas of exports
are indicated below:
Steel Raw
Materials
In spite of
volatile market, STC was able to effect exports of steel raw materials
amounting to Rs.6230 millions thereby registering a significant increase of 39%
over the previous year. In fact, exports would have been higher but for the
slack steel market in the earlier part of the year.
In a bid to expand
exports of these items, during the year, STC also exported Rs.4090 millions
worth of steel raw material to other countries.
Jewellery
During the year,
the Corporation exported jewellery worth Rs.2720 millions.
Castor Oil
During the year,
STC was successful in developing new buyers of castor oil and exported castor
oil worth Rs.890 millions to
Imports
Led by growth in
bullion imports, the import turnover reached an all time high of Rs.190490
millions thereby registering a growth of 17% over previous year. Areas
exhibiting noteworthy performance in imports are as under:
Bullion
A number of
measures undertaken by STC during the year to expand bullion business yielded
results and the Corporation achieved an all time high bullion import turnover
of over Rs.100000 millions, reflecting an increase of 81 % over the previous year. Thus, bullion
emerged as the single largest item of import constituting 54% of total import
turnover.
During the year,
STC was successful in expanding the supply base and roping in more suppliers
and more customers of bullion. It also set up necessary IT infrastructure at
the corporate office building for price monitoring, facilitating timely
execution of contracts, payments, etc.
Petrochemicals
Import of
petro-chemicals has also been a major business activity of STC. During the last
two years, STC had arranged significant imports of petrochemicals. During
2009-10, STC effected Rs.30830 millions
worth of import sale of petrochemicals, constituting 16% of the total imports
of STC.
Hydro-carbons,
Minerals and Metals
Imports of
hydrocarbons, minerals and metals by STC amounted to Rs.31060 millions. During
the year, STC imported steam coal for various power generating units.
Fertilizers
During the year,
STC was once again asked by the Govt. of
Pulses
STC continued to
undertake pulses import on behalf of the Govt. of
Edible Oils
During the year,
STC imported about 3 lakh MT of edible oils resulting in a turnover of Rs.9190
millions. This included Rs.1260 millions from sale of edible oil imported on
behalf of the Government, which was packed in 1-litre pouches and delivered to
the state governments for public distribution system.
Domestic sales
During the year,
STC effected Rs.4820 millions worth of domestic sales of hydrocarbons, minerals
and metals.
The domestic tea operations
involving direct procurement from small growers and processing resulted in a
turnover of over Rs.130 millions. The Corporation has finalized arrangement
with three processing units and a substantial turnover is expected from these
operations in 2010-11, covering both exports and domestic sales.
Other major items
of domestic trade were jute goodsRs.410 millions and maize Rs.60 millions.
Total domestic sales amounted to Rs.9560 millions.
Profitability
During the period
, the net profit of the Corporation grew by 36% to Rs.1070 millions as against
Rs.790 millions in the previous year.
FIXED ASSETS:
- Roads,
Culverts, Sewerage and Water Supply System
- Railway
Siding
- Plant and Machinery
- Furniture and
Fittings
- Air
Conditioner and Office Equipments
- Vehicles
- Computer,
Data Processor and Communication
WEBSITE DETAILS:
PROFILE
Subject is a premier international trading house owned by the Government
of India. Having been set up in 1956, the Corporation has developed vast
expertise in handling bulk international trade. Though dealing largely with the
East European countries during the early years of its formation, today it
trades with almost all the countries of the world.
By virtue of infrastructure and experience possessed by the Corporation,
it plays an important role in arranging import of essential items into
The eventful track record of more than 53 years has helped STC to gear
itself to face the fierce competitive challenges, seize business initiatives
and build on its core competencies. With a global vision in effective
management, result oriented approach, strong belief in productivity and accountability,
STC is future ready to take advantage of the opportunities in the 21st century
and help propel
PRESS RELEASE:
State Trading
Corporation set for a makeover
G. Srinivasan
The State Trading Corporation of India Limited (STC) is all set for a
make-over from being a bulk trading agency in commodities to a one-stop shop
that offers specialised trade facilitation, by drawing from experience and
contacts built over five decades.
In an interview to Business Line, the Chairman-cum-Managing
Director of STC, Dr Arvind Pandalai, said, "In the medium- to long-term,
with so much competition and the market opening up, the trading scenario is going
to change. Unless we prepare ourselves through value-addition in trading
operations, nobody is going to come to us."
Accordingly, the Rs 10,0000.000 Millions trading giant has devised
several plans to position itself through "backward and forward integration
and industrial participation programme with best international companies so
that not only our requirements are met but the country too gets the best
technology at affordable cost," said Dr Pandalai.
"Our product range, strong financial base, proprietary
infrastructure and expertise in third-party trading would all be duly and fully
used to convert STC into a world trading company instead of being an
India-centric corporation," Dr Pandalai said.
On backward integration, he said, anybody who exports through us needs
certain inputs, whether it is raw materials, machinery, technology or
assistance in developing products, which might be available domestically or
globally.
"We are going to get all these through our connections and contacts
so that the exporters become permanent partners and together we can grow
manifold," Dr Pandalai said.
In certain cases, he said, this might even be financial requirements and
"if we see capabilities, we can get finances cheaper than anybody else as
we have structured financial operations which we had begun a couple of years
ago."
On forward linkage, he said, "Our clients (both exporters and
importers) may require certain inputs and want us to offload some of their
products somewhere else. We are helping to get these done besides assisting
them in running their plants efficiently."
Dr Pandalai said the corporation is going to certain high-tech areas and
tie up with patent-holders internationally, bring them to
He cited the example of proprietary items for which there was an
exclusive tie-up for production and marketing of ballistic protection equipment,
including bullet-proof armouring of vehicles, under the Centre's plan to
modernise police/paramilitary forces and forensic science laboratories.
He said the company would derive its strength from its earlier
experience in counter-trade deals on defence equipment.
Dr Pandalai also mentioned a recent MoU that STC had signed with the
Foreign Economic Relations Department of the Government of Uzbekistan. Under
this, STC would take some capable textile manufacturers from
The final product could be exported to a third country or brought back
to
The STC Chief said, with disinvestment blues behind the company,
"we are going to fill up the vacuum for professional skills available at
various stages."
The company has begun "dialogues with reputed global organisations
to study the new areas into which the corporation plans to foray and develop a
structure and the inputs required so that the company can get the human skills
by staying one step ahead of competition."
On the current year's prospects for the company, Dr Pandalai said STC
would definitely do better than the MoU physical target it had projected to the
Government, particularly on the export front in areas such as steel, ore,
granite and pharmaceutical products.
On the import front, the company would consolidate its gains in trading
edible oil, parallel marketing of petro-products and a few other traditional
and non-traditional items.
FIVE DECADES OF
THE STATE TRADING CORPORATION
The State
Trading Corporation of India Ltd. (STC) has entered the year of its existence
in international trading. It has been a long sail for STC since its
incorporation on May 18, 1956 as an autonomous company of the Government of
India under the Indian Companies Act, 1956. Today STC has an
extra-ordinary track record of five decades of service to the nation.
With a starting
capital of Rs. 10.000 Millions, STC initiated
With the gradual
expansion in business, the role and responsibilities of the Corporation have
kept pace with the fast growth in trade of specific products such as iron ore,
handicrafts and handlooms. To cater to the trade in specific commodities
number, a corporation such as the Minerals and Metals Trading Corporation
(MMTC), Cashew Corporation of India (CCI), Projects and Equipment Corporation
(PEC) and State Chemicals and Pharmaceuticals Trading Corporation (SCPTC) were
carved out of STC during the early 1960s and 70s to handle independent business
of these items. Even the Handicrafts and Handloom Export Corporation
(HHEC) and Tea Trading Corporation of India (TTCI) were subsidiaries of
STC at some stage. Some of these corporations have since merged back with
STC while others have become independent corporations.
STC has played the
role of a catalyst in promoting exports from the small-scale sector by
providing a package of services to them such as product development, import of
raw material and machinery, quality control, financing, market intelligence,
participation in trade fairs, technical know-how, packaging, costing, pricing,
transportation, documentation and above all the STC goodwill. STC set up
a number of common facility centers for the benefit of exporters. These
included shoe upper unit for manufacture of shoe uppers, textile design
centre to create new styles and designs of readymade garments in line with the
prevailing fashion trends in international markets and design-cum-development
center for sports goods industry. STC’s role in promoting exports of
leather, leather products, woolen knitwear, processed foods, cosmetics,
chemicals, drugs and disposables has been noteworthy.
As an instrument
of the Government’s Trade Policy, STC arranged imports of essential commodities
of mass consumption such as edible oils, wheat, sugar and pulses.
It also handled a large volume of canalized imports of newsprint, natural
rubber and life saving drugs to meet domestic shortages. In 1974-75
alone, the Corporation handled as many as 118 canalised items of import, which
mostly comprised chemicals. Encouraged by the success achieved in
handling bulk items, the Corporation set up an Industrial Raw Material
Assistance Centre (IRMAC) which imported non-canalised raw materials in bulk
and arranged off-the-shelf deliveries to actual users and registered
exporters against valid advance licences, thereby passing them the
benefits of bulk buying. The Corporation also imported banned or
restricted items like phenol and industrial alcohol to meet their shortages in
the country on advice. It imported raw materials and capital goods at
most competitive prices, thereby saving foreign exchange.
STC ahs also
successfully served its socio-economic objectives by ensuring remunerative
prices to growers of certain agricultural products such as rubber, tobacco,
shellac, lemon grass oil and sticklac through price support operations
undertaken from time to time at the instance of the Government. These
operations, whenever undertaken by the Corporation, had a salutary impact on
prices.
The total turnover
of STC attained a
Liberalisation of
trade policies by the Government since 1991 did pose a challenge to
the Corporation’s business in the initial years. But, STC geared itself
well to meet the global challenges by embarking upon diversification of its activities.
Over the past five
decades, STC has grown from strength to strength. It has since raised its
equity capital to Rs. 300.000 Millions, of which, Rs. 280.000 Millions has been
added by way of capitalization of reserves. In addition, STC has reserves
worth Rs. 2760.000 Millions today. The Corporation has earned profits
since its inception and has contributed Rs. 7750.000 Millions to the
public exchequer by way of payment of dividends and taxes.
STC has developed
infrastructure and expertise necessary to structure and implement any
type of trade transaction. Backed by fourteen branch offices, mostly
located at major port towns, the Corporation has its corporate office at
STC has also developed
large, real estate in the form of offices and residential accommodation
at major metropolitan cities including a housing colony for its employees at
In the past three
years, the Corporation also made forays into many new areas of trade such as
the import of hydrocarbons, minerals, metals, fertilizers on commercial
account, petro-chemicals, IT products, and in exports of iron ore, chemicals
and drugs. STC has thus emerged as a leading exporter of agro products
and importer of precious metals and other bulk items in the country.
As a result of diversification of business activities,
during 2004-05, the STC Group has achieved an all-time high turnover exceeding
Rs. 100000.000 Millions and earned a net profit after tax of Rs. 270.000
Millions.
UNAUDITED
FINANCIAL RESULTS FOR THE QUARTER ENDED 31.03.2011
(Rs in Millions)
|
Particulars |
3 Months Ended 31.03.2011 (Reviewed) |
12 Months Ended 31.03.2011 (Reviewed) |
|
1. a) Net Sales/Income From Operation |
57062.200 |
199065.500 |
|
b) Other Trade Income |
2726.200 |
7108.300 |
|
Total Income |
59788.400 |
206173.800 |
|
2. Expenditure |
|
|
|
a)(Increase)/Decrease in stock in trade work in progress |
(8367.300) |
(8198.700) |
|
b) Purchase of traded goods |
66579.200 |
210495.200 |
|
c) Staff Cost |
273.100 |
958.500 |
|
d) Depreciation |
7.800 |
29.800 |
|
e) Other Expenditure |
733.200 |
1230.900 |
|
Total |
59226.000 |
204515.700 |
|
|
|
|
|
3. Profit for operations before other
Income, Interest and Exceptional items ( 1-2 ) |
562.400 |
1658.100 |
|
4. Other Income |
107.800 |
591.700 |
|
5. Profit before Interest and
Exceptional items ( 3+4 ) |
670.200 |
2249.800 |
|
6. Interest |
316.300 |
1515.400 |
|
7. Profit after Interest but before
Exceptional items ( 5-6 ) |
353.900 |
734.400 |
|
8. Exceptional items |
- |
-- |
|
9. Profit (+)/Loss(-)
from Ordinary Activities before Tax ( 7+8 ) |
353.900 |
734.400 |
|
|
|
|
|
10. Tax Expenses |
|
|
|
Current Tax |
220.000 |
330.000 |
|
Income tax relating to earlier years |
-- |
-- |
|
Deferred tax |
(50.100) |
(50.100) |
|
Fringe Benefit Tax relating to earlier years. |
-- |
-- |
|
11. Net Profit
(+)/Loss(-) from Ordinary Activities after Tax ( 9-10 ) |
184.000 |
454.500 |
|
12. Extraordinary items (net of tax expenses Rs.) |
-- |
-- |
|
13. Net Profit (+)/Loss(-)
for the period (11-12) |
184.000 |
454.500 |
|
14. Paid Up-Equity Share Capital (Face Value of Rs.5/- each) |
600.000 |
600.000 |
|
15.Reserve Excluding, Revaluation Reserve as per balance of previous
accounting year |
-- |
-- |
|
16. Earnings per shares (EPS) A.) Basic and diluted EPS before
Extraordinary items for the period, for the year to date and for the previous
year (not to be annualised) Rs. |
3.07 |
7.58 |
|
B) Basic and diluted EPS after Extraordinary items for the
period, for the year to date and for the previous year (not to be annualised)
Rs. |
3.07 |
7.58 |
|
17. Public Shareholdings |
|
|
|
No. of Shares |
5386400 |
5386400 |
|
Percentage of Shareholding |
8.977 |
8.977 |
|
18. Promoter and
Promoter Group Shareholding |
|
|
|
a) Pledged /
Encumbered |
|
|
|
- Number of
Shares |
-- |
-- |
|
- Percentage of
Shares (as a % of total shareholding of promoter and promoter group) |
-- |
-- |
|
- Percentage of
Shares (as a % of total share capital of the Company) |
-- |
-- |
|
b)
Non-Encumbered |
|
|
|
Number of Shares
|
54613600 |
54613600 |
|
- Percentage of
shares (as a % of total shareholding of promoter and promoter group) |
100.00 |
100.00 |
|
- Percentage of
shares (as a % of total share capital of the company) |
91.023 |
91.023 |
SEGMENT WISE
REVENUE, RESULTED AND CAPITAL EMPLOYED
(Rs. In Millions)
|
Particulars |
3 Months Ended 31.03.2011 (Reviewed) |
12 Months Ended 31.03.2011 (Reviewed) |
|
1. Segment revenue (Net Sales from each segment) |
|
|
|
a) Export |
1189.800 |
4917.500 |
|
b) Import |
53703.000 |
188602.700 |
|
c) Domestic |
2169.400 |
5545.300 |
|
Total |
57062.200 |
199065.500 |
|
Less: Inter-segment revenues |
-- |
-- |
|
Net Sales |
57062.200 |
199065.500 |
|
2. Segment results (Profit)/ Loss before tax and interest from each
segment |
|
|
|
a) Export |
26.500 |
116.600 |
|
b) Import |
1184.300 |
1612.700 |
|
c) Domestic |
30.800 |
64.700 |
|
Total |
1241.600 |
1794.000 |
|
Less: i) Interest |
316.300 |
1515.400 |
|
ii) Other unallocable expenditure net off unallocable income |
571.400 |
(455.800) |
|
Profit Before Tax |
353.900 |
734.400 |
|
3. Capital Employed (Segment assets – Segment Liabilities) |
|
|
|
a) Export |
-- |
-- |
|
b) Import |
-- |
-- |
|
c) Domestic |
-- |
-- |
|
d) Unallocable |
-- |
-- |
STATEMENT
OF ASSETS AND LIABILITIES
(Rs.
In Millions)
|
Particulars |
31.03.2011 (Reviewed) |
|
Shareholders’
Funds |
|
|
a) Capital |
600.000 |
|
b) Reserve and Surplus |
6293.901 |
|
Loan Funds |
|
|
Secured Loan |
14985.702 |
|
Unsecured Loan |
500.000 |
|
Total |
22379.603 |
|
Fixed Assets |
530.352 |
|
Capital Work in process |
70.926 |
|
Investment |
30.304 |
|
Deferred Tax (Net) |
784.153 |
|
Current Assets,
Loans and Advances |
|
|
a) Inventories |
13862.937 |
|
b) Sundry Debtors |
46099.339 |
|
c) Cash and Bank Balances |
7619.690 |
|
d) Loans and advances |
3101.007 |
|
Less: Current liabilities and provisions |
|
|
a) Liabilities |
49049.121 |
|
b) Provisions |
669.984 |
|
|
|
|
Miscellaneous expenditure (Not written off or adjusted) |
-- |
|
Total |
22379.603 |
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.44.58 |
|
|
1 |
Rs.71.75 |
|
Euro |
1 |
Rs.64.80 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
7 |
|
--CREDIT LINES |
1~10 |
7 |
|
--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 |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
yes |
|
TOTAL |
|
63 |
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 |
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 |
|
- |
NB |
New Business |
- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or
its officials.