1. Summary Information
|
|
|
Country |
India |
|
Company Name |
Steel Authority
of India Limited |
Principal Name 1 |
Mr. Shuman Mukherjee |
|
Status |
Excellent |
Principal Name 2 |
Mr. V K Mehta |
|
|
|
Registration # |
55-006454 |
|
Street Address |
Ispat Bhawan, Lodhi Road, New Delhi – 110
003, India |
||
|
Established Date |
24.01.1973 |
SIC Code |
-- |
|
Telephone# |
91-11-24367481
(14 lines) |
Business Style 1 |
Manufacturing |
|
Fax # |
91-11-24367015 |
Business Style 2 |
Marketing |
|
Homepage |
Product Name 1 |
Pig Iron |
|
|
# of employees |
Approximately
137496 |
Product Name 2 |
Crude Steel |
|
Paid up capital |
Rs.41304,000,000/- |
Product Name 3 |
Saleable Steel |
|
Shareholders |
Shareholding
of Promoter and Promoter Group-85.82%, Public shareholding -14.17%, Other
-0.01% |
Banking |
State
Bank of India |
|
Public Limited Corp. |
Yes |
Business Period |
38 years |
|
IPO |
Yes |
International Ins. |
-- |
|
Public |
Yes |
Rating |
Aa
(77) |
|
Related
Company |
|||
|
Relation
|
Country
|
Company
Name |
CEO |
|
Joint
Ventures |
-- |
SAIL Bansal Service Centre Limited |
-- |
|
Note |
-- |
||
2. Summary
Financial Statement
|
Balance Sheet as of |
31.03.2010 |
(Unit: Indian Rs.) |
|
|
Assets |
Liabilities |
||
|
Current Assets |
300,537,000,000 |
Current Liabilities |
109368,600,000 |
|
Inventories |
90,274,600,000 |
Long-term Liabilities |
165112,500,000 |
|
Fixed Assets |
136,152,800,000 |
Other Liabilities |
76265,900,000 |
|
Deferred Assets |
0,000,000 |
Total Liabilities |
350,747,000,000 |
|
Invest& other Assets |
156,949,600,000 |
Retained Earnings |
291,863,000,000 |
|
|
|
Net Worth |
333,167,000,000 |
|
Total Assets |
683,914,000,000 |
Total Liab. & Equity |
683,914,000,000 |
|
Total Assets (Previous Year) |
541,835,700,000 |
|
|
|
P/L Statement as of |
31.03.2010 |
(Unit: Indian Rs.) |
|
|
Sales |
405,513,800,000 |
Net Profit |
67543,700,000 |
|
Sales(Previous yr) |
432,040,600,000 |
Net Profit(Prev.yr) |
61704,000,000 |
MIRA
INFORM REPORT
|
Report Date : |
29.06.2011 |
IDENTIFICATION DETAILS
|
Name : |
STEEL AUTHORITY OF INDIA LIMITED |
|
|
|
|
Registered
Office : |
Ispat Bhawan, Lodhi Road, New Delhi – 110
003, Delhi |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as
on) : |
31.03.2010 |
|
|
|
|
Date of
Incorporation : |
24.01.1973 |
|
|
|
|
Com. Reg. No.: |
55-006454 |
|
|
|
|
Capital Investment
/ Paid-up Capital : |
Rs.41304.000
Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L27109DL1973GOI006454 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
DELS2116A |
|
|
|
|
PAN No.: [Permanent Account No.] |
AAAC57062F |
|
|
|
|
Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchanges |
|
|
|
|
Line of Business
: |
Manufacturing and marketing of Pig Iron, Crude Steel, Saleable Steel
and Calcium Ammonium Nitrate. |
|
|
|
|
No. of Employees
: |
Approximately 137496 |
RATING & COMMENTS
|
MIRA’s Rating : |
Aa (77) |
|
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 1300000000 |
|
|
|
|
Status : |
Excellent |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Exists |
|
|
|
|
Comments : |
Subject is a Government of India company, having excellent track.
Directors are reported to be experienced and respectable businessmen. Fundamentally the company appears to be strong. Trade relations are
reported as fair. Business is active. Payments are reported to be regular and
as per commitments. Company can be considered good for normal 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) |
|
|
A1 |
A1 |
|
|
|
|
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
LOCATIONS
|
Registered
Office : |
Ispat Bhawan,
Lodhi Road, New Delhi – 110 003, Delhi, India |
|
Tel. No.: |
91-11-24367481
(14 lines) |
|
Fax No.: |
91-11-24367015 |
|
E-Mail : |
|
|
Website : |
|
|
Cable : |
STEELINDA |
|
|
|
|
Head Office : |
·
Ispat Bhavan, 40, Fax : 91-33-2288 6183, 288 2028 E-mail: sailcaib@cal.vsnl.net.in, edmic@sail-steel.com ·
Ispat Niketan, 52/1A
Promothesh Barua Sarani, ( Phone
91-33- 2476 9986, 476 9987 Fax : 91-33-2479 9799 E-mail: edfin@sail-steel.com |
|
|
|
|
International Trade Division : |
Hindustan Times
House, 13th Floor, 18-20, Kasturba Gandhi Marg, New Delhi - 110
001, Delhi, India |
|
Tel. No.: |
91-11-2335 5733 |
|
Fax No.: |
91-11-2332 1018,
2331 2774 |
|
E-Mail : |
|
|
|
|
|
Factory : |
Integrated Steel
Plants
·
Bhilai Steel Plant, Chhattisgarh – 490 001, ·
·
Rourkela Steel Plant – 769 011, · Bokaro Steel Plant – 827 001, Jharkhand ·
P. O. Hinoo,
Special Steel
Plants
·
Alloy Steel Plants, ·
·
Visvesvaraya Iron and Steel Plant, Bhadravati, |
|
|
|
|
Sail Refractory
Unit : |
|
|
|
|
|
Regional/
Zonal Offices : |
· Antriksh Bhavan, 10th Floor,
22 Kasturba Gandhi Marg, · Jeevan Sudha, 8th - 9th
Floors, 42-C, · The Metropolitan, Plot No. C-26/27,
Bandra-Kurla Complex, Bandra (East), Mumbai- 400 051, ·
Ispat Bhavan, 28259660 (LP) E-mail: rmfpsr@sail-steel.com,
rmlpsr@sail-steel.com ·
Ispat Bhavan, Phone:
91-361-2542756, 2545260, 2541519, 2541544 Fax:
91-361-2548631 |
|
|
|
|
Branches/
Sales Office : |
Located at: ·
Agra ·
·
·
·
·
·
·
·
·
· Mandi Gobindgarh ·
· Bhubaneshwar · Bokaro · Kolkata · Dimapur ·
· Guwahati ·
·
· Ahmedabad ·
· Bhilai ·
·
·
· Jaipur ·
· Mumbai ·
· Pune ·
·
· Chennai ·
·
·
· Tiruchirapalli ·
·
|
DIRECTORS
AS ON 30.09.2010
|
Name : |
Mr. Shuman Mukherjee |
|
Designation : |
Director (Commercial) |
|
|
|
|
Name : |
Mr. V K Mehta |
|
Designation : |
Executive Director – Long Products and ITD |
|
|
|
|
Name : |
Mr. A K Ghosh |
|
Designation : |
Executive Director- Finance and Accounts/ Executive Director- Flat
Products |
|
|
|
|
Name : |
Mr. D Rajan |
|
Designation : |
Executive Director |
|
|
|
|
Name : |
Mr. C S Verma |
|
Designation : |
Chairman Cum Managing Director |
|
|
|
|
FUNCTIONAL
DIRECTORS |
|
|
|
|
|
Name : |
Mr. Soiles Bhattacharya |
|
Designation : |
Director (Finance) |
|
|
|
|
Name : |
Mr. Shoeb S Ahmed |
|
Designation : |
Director (Commercial) |
|
|
|
|
Name : |
Mr. V K Gulhati |
|
Designation : |
Director (Technical) |
|
|
|
|
Name : |
Mr. B.B. Singh |
|
Designation : |
Director (Personnel) |
|
|
|
|
MANAGING
DIRECTORS |
|
|
|
|
|
Name : |
Mr. S N Singh |
|
Designation : |
Managing Director ( |
|
|
|
|
Name : |
Mr. P K Bajaj |
|
Designation : |
Managing Director ( |
|
|
|
|
Name : |
Mr. S S Mohanty |
|
Designation : |
Managing Director (Bokaro Steel Plant) |
|
|
|
|
GOVERNMENT
DIRECTORS |
|
|
|
|
|
Name : |
Mr. S Machendra Nathan |
|
Designation : |
Government Director/ Additional Secretary and Financial Adviser
Ministry of Steel, Government of |
|
|
|
|
Name : |
Mr. G Elias |
|
Designation : |
Government Director/ Joint Secretary Ministry of Steel, Government of |
|
|
|
|
INDEPENDENT
DIRECTORS |
|
|
|
|
|
Name : |
Prof. Deepak Nayyar |
|
Designation : |
Independent Directors |
|
|
|
|
Name : |
Mr. A K Goswami |
|
Designation : |
Independent Director |
|
|
|
|
Name : |
Dr. Jagdish Khattar |
|
Designation : |
Independent Director |
|
|
|
|
Name : |
Prof. Subrata Chaudhuri |
|
Designation : |
Independent Director |
KEY EXECUTIVES
|
Name : |
Ms. Art Luniya |
|
Designation : |
General Manager (M-CD, SP and MAG) |
|
|
|
|
Name : |
Mr. T K Sahu |
|
Designation : |
General Manager (Project and Quality) |
|
|
|
|
Name : |
Mr. K J Roa |
|
Designation : |
General Manager (Marketing – CD) |
|
|
|
|
Name : |
Mr. C K Dhar |
|
Designation : |
General Manager, Market Research |
|
|
|
|
Name : |
Mr. P C Jha |
|
Designation : |
General Manager, Rural Marketing and Distribution Channel |
|
|
|
|
Name : |
Mr. S B Basu |
|
Designation : |
General Manager (M- ERP) |
|
|
|
|
Name : |
Mr. S K Das |
|
Designation : |
General Manager, Warehousing |
|
|
|
|
Name : |
Mr. D P Roy |
|
Designation : |
General Manager (PET) |
|
|
|
|
Name : |
Mr. M K Barman |
|
Designation : |
General Manager (P and A) |
|
|
|
|
Name : |
Mr. Yatindra |
|
Designation : |
General Manager (Vigilance) and ACVO |
|
|
|
|
Name : |
Mr. S S Bhardwaj |
|
Designation : |
General Manager, Law |
|
|
|
|
Name : |
Mr. D N Gupta |
|
Designation : |
General Manager and Regional Manager (Flat Products- Northern Region) |
|
|
|
|
Name : |
Mr. Binod Kumar |
|
Designation : |
General Manager and Regional Manager (Long Products – Northern Region) |
|
|
|
|
Name : |
Mr. D S Chhaya |
|
Designation : |
Regional manager (Retail- Northern Region) |
|
|
|
|
Name : |
Mr. P Kulshrestha |
|
Designation : |
General Manager and Regional Manager (Long Products- Eastern Region) |
|
|
|
|
Name : |
Mr. Alok Mittal |
|
Designation : |
Regional Manager (Flat Products- Eastern Region) |
|
|
|
|
Name : |
Mr. B Saha |
|
Designation : |
Regional Manager (Retail- Eastern Region) |
|
|
|
|
Name : |
Mr. V K Ameta |
|
Designation : |
General Manager and Regional Manager (Flat Products – Western Region) |
|
|
|
|
Name : |
Mr. S Ramchandran |
|
Designation : |
Regional Manager (Long Products – Western Region) |
|
|
|
|
Name : |
Mr. D P Behra |
|
Designation : |
Regional Manager (Retail- Western Region) |
|
|
|
|
Name : |
Mr. P K Mishra |
|
Designation : |
General Manager and Regional Manager (Flat Products- Southern Region) |
|
|
|
|
Name : |
Mr. T K Patnaik |
|
Designation : |
Regional Manager (Long Products – Southern Region) |
|
|
|
|
Name : |
Mr. C Jayaram |
|
Designation : |
Regional Manager (Retail- Southern Region) |
|
|
|
|
Name : |
Mr. P Roy Chowdhury |
|
Designation : |
General Manager |
|
|
|
|
Name : |
Mr. B Chongdar |
|
Designation : |
General Manager and Regional Manager (T and S – Eastern Region) |
|
|
|
|
Name : |
Mr. A K Gupta |
|
Designation : |
Regional Manager (T and S – Southern Region) |
|
|
|
|
Name : |
Mr. V Dave |
|
Designation : |
General Manager |
|
|
|
|
Name : |
Mr. Tareque Mannan |
|
Designation : |
Chief of Communications |
|
|
|
|
Name : |
Mr. Devinder Kumar |
|
Designation : |
Secretary |
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 |
|
|
|
|
|
|
|
|
3,544,690,285 |
85.82 |
|
|
3,544,690,285 |
85.82 |
|
|
|
|
|
|
|
|
|
Total
shareholding of Promoter and Promoter Group (A) |
3,544,690,285 |
85.82 |
|
|
|
|
|
(B)
Public Shareholding |
|
|
|
|
|
|
|
|
24,511,749 |
0.59 |
|
|
76,138,307 |
1.84 |
|
|
211,213,818 |
5.11 |
|
|
175,759,727 |
4.26 |
|
|
487,623,601 |
11.81 |
|
|
|
|
|
|
|
|
|
|
18,258,547 |
0.44 |
|
|
|
|
|
|
|
|
|
|
62,785,953 |
1.52 |
|
|
10,679,684 |
0.26 |
|
|
|
|
|
|
5,748,230 |
0.14 |
|
|
2,580,158 |
0.06 |
|
|
3,167,572 |
0.08 |
|
|
500 |
- |
|
|
97,472,414 |
2.36 |
|
|
|
|
|
Total
Public shareholding (B) |
585,096,015 |
14.17 |
|
|
|
|
|
Total
(A)+(B) |
4,129,786,300 |
99.99 |
|
|
|
|
|
(C) Shares
held by Custodians and against which Depository Receipts have been issued |
- |
- |
|
|
- |
- |
|
|
614,245 |
0.01 |
|
|
614,245 |
0.01 |
|
|
|
|
|
Total
(A)+(B)+(C) |
4,130,400,545 |
100.00 |
(1) Indian
Central Government / State Government(s)
Individual shareholders holding nominal
share capital up to Rs.0.100 MillionBUSINESS DETAILS
|
Line of Business : |
Manufacturing and marketing of Pig Iron, Crude Steel, Saleable Steel
and Calcium Ammonium Nitrate. |
||||||||||||||||||||||||||||||||||
|
|
|
||||||||||||||||||||||||||||||||||
|
Products : |
|
PRODUCTION STATUS AS ON 31.03.2010
|
Particulars |
Unit |
Installed
Capacity |
Actual
Production |
|
Main
Steel Plants |
|
|
|
|
Pig Iron |
Tones |
2397000 |
319027 |
|
Crude Steel |
Tones |
12487000 |
13198558 |
|
Saleable Steel |
Tones |
10740000 |
12127650 |
|
|
|
|
|
|
Alloy
Steels Plants |
|
|
|
|
Pig Iron |
Tones |
58000 |
3587 |
|
Crude Steel |
Tones |
352000 |
307712 |
|
Saleable Steel |
Tones |
457000 |
504198 |
Notes:
i) Crude Steel installed capacity is in terms of solid steel as per
International Iron and steel Institute.
ii) "Licensed Capacity" Not applicable (N.A.) in terms of
Government of India Notification No.S.O.477 (E) dated 25th July, 1991.
GENERAL INFORMATION
|
No. of Employees : |
Approximately 137496 |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Bankers : |
·
State Bank of ·
State Bank of ·
State Bank of ·
Punjab National Bank, ·
United Bank of ·
Bank of ·
Syndicate Bank, ·
Union Bank of ·
Bank of ·
Canara Bank, ·
Indian Overseas Bank, ·
State Bank of ·
Bank of Maharashtra, ·
Oriental Bank of Commerce, ·
Punjab and Sind Bank Limited, ·
Jammu and Kashmir Bank, ·
State Bank of Saurashtra, ·
Central Bank of ·
State Bank of ·
State Bank of ·
State Bank of ·
State Bank of ·
HDFC Bank, ·
Allahabad Bank, ·
UCO Bank, · IDBI Bank Limited · Yes Bank · Corporation Bank · Andhra Bank · Bank of Tokyo- Mitsubishi UJF Limited · Baraclays Bank PLC · BNP Paribas · Dena Bank · Deutsche Bank · State Bank of Travancore · Vijaya Bank · ICICI Bank Limited · Axis Bank Limited · Karnataka Bank Limited · ING Vysya Bank Limited · Indusind Bank Limited · The Karur Vysya Bank Limited · Kotak Mahindra Bank Limited · Federal Bank Limited · South Indian Bank |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Facilities : |
(a) Secured by hypothecation of all current assets (b) Secured by charges ranking pari- passu inter-se, over moveable
properties pertaining to Rourkela Steel Plant (RSP) (c) Secured by charges ranking pari-passu inter-se, on all the present and
future immovable property at Mouje- Wadej of City Taluka, District Ahmadabad,
Gujarat and Company's Plant and Machinery, including the land on which it
stands, pertaining to Durgapur Steel Plant.( DSP ) and IISCO Steel Plant
(ISP) (d) Redeemable in 12 equal yearly installments of Rs.140.000 Millions each
starting w.e.f. 26th October 2014 (e) Redeemable in 3 equal installments of Rs.500.000 Millions s each on
15th September of 2014, 2019 and 2024 Note: Amount
repayable within one year as at 31.03.2010, Rs.20569.300 Millions ( previous
year : Rs.9805.000 Millions)
(a) Guaranteed by Government of India (b) Redeemable in 4 equal yearly installments of Rs.160.000 Millions each
starting w.e.f. 15th October 2010 * Allotted on1st April 2009 Note: Amount
repayable within one year as at 31.03.2010, Rs.79843.800 Millions
(Rs.42310.100 Millions) |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Statutory Auditors : |
|
|
Name : |
T R Chadha and Company Chartered Accountant |
|
|
|
|
Statutory Auditors : |
|
|
Name : |
Chaturvedi and company Chartered Accountant |
|
|
|
|
Statutory Auditors : |
|
|
Name : |
Tej Raj and Pal Chartered Accountant |
|
|
|
|
Joint Ventures: |
·
SAIL Bansal Service Centre Limited ·
Mjunction Services Limited ·
UEC-SAIL Information Technology Limited ·
Romelt SAIL ( ·
N.E. Steel and Galvanising Private Limited ·
Bhilai Jaypee Cement Limited ·
Bokaro Jaypee Cement Limited ·
S and T Mining Company Private Limited |
CAPITAL STRUCTURE
AS ON 31.03.2010
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
5000000000 |
Equity Shares |
Rs.10/- each |
Rs.50000.000 millions |
|
|
|
|
|
Issued, Subscribed and Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
4130400545 |
Equity Shares |
Rs.10/- each |
Rs.41304.000
millions |
|
|
|
|
|
Note:
1244382900 equity shares of Rs.10 each (net of
adjustments on reduction of capital) were allotted as fully paid up for
consideration other than cash.
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 |
41304.000 |
41304.000 |
41304.000 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.0000 |
|
|
3] Reserves and Surplus |
291863.000 |
240178.200 |
189331.700 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
NETWORTH
|
333167.000 |
281482.200 |
230635.700 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
77559.000 |
14976.400 |
9253.100 |
|
|
2] Unsecured Loans |
87553.500 |
60651.900 |
21199.300 |
|
TOTAL BORROWING
|
165112.500 |
75628.300 |
30452.400 |
|
|
DEFERRED TAX LIABILITIES |
14149.200 |
13332.100 |
15686.000 |
|
|
|
|
|
|
|
TOTAL
|
512428.700 |
370442.600 |
276774.100 |
|
|
|
|
|
|
|
APPLICATION OF FUNDS
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block]
|
136152.800 |
123053.900 |
115713.100 |
|
Capital work-in-progress
|
150261.300 |
65497.100 |
23895.500 |
|
|
|
|
|
|
|
INVESTMENT
|
6688.300 |
6527.000 |
5382.000 |
|
DEFERREX TAX ASSETS
|
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS &
ADVANCES
|
|
|
|
|
|
|
Inventories
|
90274.600
|
101611.900
|
68572.300
|
|
|
Sundry Debtors
|
34939.000
|
30277.700
|
30481.200
|
|
|
Cash & Bank Balances
|
224363.700
|
182646.700
|
137594.400
|
|
|
Other Current Assets
|
7803.400
|
10149.600
|
2730.800
|
|
|
Loans & Advances
|
33430.900
|
22071.800
|
23797.500
|
Total Current Assets
|
390811.600
|
346757.700
|
263176.200
|
|
Less :
CURRENT LIABILITIES & PROVISIONS
|
|
|
|
|
|
|
Sundry Creditors
|
62323.600
|
41048.700
|
|
|
|
Other Current Liabilities
|
47045.000
|
35838.000
|
64009.200
|
|
|
Provisions
|
62116.700
|
94506.400
|
67978.300
|
Total Current Liabilities
|
171485.300
|
171393.100
|
131987.500
|
|
Net Current Assets
|
219326.300
|
175364.600
|
131188.700
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES
|
0.000 |
0.000 |
594.800 |
|
|
|
|
|
|
|
TOTAL
|
512428.700 |
370442.600 |
276774.100 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
405513.800 |
432040.600 |
395084.500 |
|
|
|
Interest Earned |
18609.800 |
18329.500 |
0.000 |
|
|
|
Other Income |
9072.500 |
7319.900 |
23824.600 |
|
|
|
TOTAL (A) |
433196.100 |
457690.000 |
418909.100 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Accretion/ Depletion to Stock |
11610.100 |
[19345.300] |
(3393.000) |
|
|
|
Raw Material Consumed |
173401.800 |
201971.900 |
139601.400 |
|
|
|
Purchase of Finished/ Semi Finished Goods |
27.900 |
95.800 |
36.300 |
|
|
|
Employees’ Remuneration and Benefits |
54168.100 |
84614.600 |
79190.200 |
|
|
|
Stores and Spares Consumed |
31634.300 |
34918.100 |
32939.000 |
|
|
|
Power and Fuel |
33693.500 |
31879.400 |
28255.600 |
|
|
|
Repairs and Maintenance |
5697.400 |
6247.400 |
5521.500 |
|
|
|
Freight outward |
6742.800 |
7689.600 |
7178.500 |
|
|
|
Other Expenses |
23272.300 |
26721.800 |
18363.200 |
|
|
|
Inter Account Adjustment |
[25532.700] |
[26526.400] |
[18322.200] |
|
|
|
Adjustment pertaining to earlier years |
[232.200] |
[37.500] |
[12.900] |
|
|
|
TOTAL (B) |
314483.300 |
348229.400 |
289357.600 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
118712.800 |
109460.600 |
29551.500 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
4020.100 |
2594.100 |
2509.400 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
114692.700 |
106866.500 |
27042.100 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
13372.400 |
12877.700 |
12354.800 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
101320.300 |
93988.800 |
114687.300 |
|
|
|
|
|
|
|
|
|
Less |
TAX (I) |
33776.600 |
32284.800 |
39319.500 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-I) (J) |
67543.700 |
61704.000 |
75367.800 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
203450.500 |
160192.300 |
NA |
|
|
Add |
Transferred
transfer from Bonds Redemption reserve |
0.000 |
355.800 |
NA |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Amount Transferred to Bonds Redemption
Reserve |
545.800 |
0.000 |
NA |
|
|
|
Amount Transferred to General Reserve |
6800.000 |
6250.000 |
NA |
|
|
|
Interim Dividend |
6608.600 |
5369.500 |
NA |
|
|
|
Proposed Dividend |
7021.700 |
5369.500 |
NA |
|
|
|
Tax on Interim Dividend |
1109.000 |
900.000 |
NA |
|
|
|
Tax on Proposed Dividend |
1166.200 |
912.600 |
NA |
|
|
BALANCE CARRIED
TO THE B/S |
247742.900 |
203450.500 |
NA |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
16.35 |
14.94 |
-- |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2010 |
30.09.2010 |
31.12.2010 |
31.03.2011 |
|
Type |
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
4th
Quarter |
|
Net Sales |
91333.200 |
108061.700 |
113128.400 |
121804.600 |
|
Total Expenditure |
72904.600 |
91113.90 |
95171.500 |
99290.800 |
|
PBIDT (Excl OI) |
18428.600 |
16947.800 |
17956.900 |
22513.800 |
|
Other Income |
3862.000 |
3753.80 |
2710.800 |
5376.900 |
|
Operating Profit |
22290.600 |
20701.600 |
20667.700 |
27890.700 |
|
Interest |
1296.400 |
1090.400 |
592.400 |
1770.300 |
|
Exceptional Items |
0.000 |
0.000 |
0.000 |
0.000 |
|
PBDT |
20994.200 |
19611.200 |
20075.300 |
26120.400 |
|
Depreciation |
3505.100 |
3688.200 |
3793.300 |
3871.400 |
|
Profit Before Tax |
17489.100 |
15923.000 |
16282.000 |
22249.000 |
|
Tax |
5722.600 |
5022.900 |
5207.300 |
6942.900 |
|
Provisions and contingencies |
0.000 |
0.000 |
0.000 |
0.000 |
|
Profit After Tax |
11766.500 |
10900.100 |
11074.700 |
15306.100 |
|
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 |
11766.500 |
10900.100 |
11074.700 |
15306.100 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
PAT / Total Income |
(%) |
15.59
|
13.48 |
17.99 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
24.99
|
21.75 |
29.03 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
19.23
|
20.01 |
30.27 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.30
|
0.33 |
0.50 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
0.56
|
0.88 |
0.70 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
2.28
|
2.02 |
1.99 |
LOCAL AGENCY FURTHER INFORMATION
HISTORY:
The Ministry of Steel and Mines drafted a policy statement
to evolve a new model for managing industry. The policy statement was presented
to the Parliament on December 2, 1972. On this basis the concept of creating a
holding company to manage inputs and outputs under one umbrella was mooted.
This led to the formation of Subject. The Company, incorporated on January 24,
1973, was made responsible for managing five integrated steel plants at Bhilai,
Bokaro,
The financial year 2007-08 has been a historical year for the
Company, being an year for commemorating its Golden Jubilee year of iron making
from February, 2008. It was on 3rd February, 1959 that the then President of
India, Dr. Rajendra Prasad had dedicated the first blast furnace of erstwhile
Hindustan Steel Limited at Rourkela Steel Plant to the nation, followed by the
dedication of the first blast furnace of Bhilai Steel on 4th February, 1959.
These events marked the beginning of steel plant operations in the public
sector in independent
FINANCIAL REVIEW
After witnessing a worldwide downturn in all spheres of business
including in the steel industry in second half of 2008-09, the company remained
focused on its fundamentals including expansion plans. It was the result of
concerted and collective action that during the calendar year 2009, SAIL
emerged as the second highest net profit earning company amongst all steel
companies of the world. In January, 2010, SAIL's overall ranking was second in
the list of 'World-Class Steelmaker Rankings' by World Steel Dynamics, a
leading steel information services provider.
The company re-oriented its production in line with market demand, substantially
increased production of value added steel and achieved saleable steel
production of 12.6 Million Tones achieving 114% capacity utilization. Sales
volume of saleable steel also improved by 7% at 12.1 Million Tones as against
11.3 Million Tones in 2008-09. The steel prices which were at its low during
October-December' 08, started recovering gradually from January 2009 onwards,
but at a slow pace. However, the average steel prices in 2009-10 were lower
than those in 2008- 09. The company achieved a turnover of Rs.439350.000
Millions during 2009-10, which is lower by 10% over previous year, mainly on
account of lower selling price.
The profitability of the company improved by 8% during current year over
previous year, mainly due to higher saleable steel production and sales volume;
improved production of value added products; reduction in coke rate,
improvement in BF productivity and specific energy consumption, favourable
impact of input prices particularly of imported coal, nickel, ferro-manganese,
silicomanganese, aluminum etc; higher interest earnings and impact of estimated
provision for salaries and wages. However, the profitability has been affected
due to reduction in average net sales realization of saleable steel, increase
in royalty on minerals, higher interest cost and depreciation. Several
strategic actions were taken by the management to improve profitability viz.
increase in production and sales of value added products, improved
techno-economic parameters (coke rate, blast furnaces productivity, specific
energy consumption etc.), optimization in procurement, continuous emphasis on
cost reduction and prudent fund management etc.
The Company continued its thrust on optimum utilization of funds by
better fund management. This included replacement of high cost short term loans
with low cost debts, strategic parking of surplus funds with scheduled banks,
actions for future fund raising etc. to meet the growth objectives. The Company
had liquid assets of Rs. 220230.000
Millions as on 31st March 2010 invested in short term deposits with scheduled
banks. Considering borrowings of Rs.165110.000 Millions, the company maintained
its virtual debt free status. The debt equity ratio of the company increased to
0.50:1 as on 31st March, 2010 from 0.27:1 as on 31st March, 2009, mainly on
account of increase in borrowings for capital expenditure. The net worth of
company improved substantially. Higher cash profits helped in higher generation
of internal resources for funding expansion plans.
The Company has paid interim dividend @ 16% of the paid-up equity share
capital during the year. The Board of Directors has further recommended a final
dividend @ 17% subject to approval of shareholders, thus making the total
dividend @ 33% of the paid up equity share capital for the year 2009-10. A sum
of Rs. 6800.000 Millions has been transferred to the general reserves during
the year (previous year Rs. 6250.000 Millions).
The Annual Report of SAIL was adjudged by South Asian Federation of
Accountants (SAFA) as the Best Presented Accounts under Public Sector entities
and was awarded 2nd Runner up (Joint) position for the year
2007-2008.
Credit Rating
M/s FITCH and M/s CARE, RBI approved credit rating agencies, maintained
"AAA" ratings, indicating the highest safety, to SAIL's long term
borrowing programme. Standard and Poor's, an International Rating Agency, has
assigned initial Issuer Rating of "BBB-" with stable outlook to the
company in line with the sovereign rating.
PRODUCTION REVIEW
The steel market in
The Company recorded higher volume of saleable steel production at 12.6
million tones, registering a growth of 1% over corresponding period of last
year (CPLY), with capacity utilisation of 114% during the year. Production of
hot metal at 14.5 million tones and crude steel at 13.5 million tones was also
at 105% of rated capacity each. SAIL plants achieved highest ever continuous
cast production of 9.1 million tones – a growth of 3% over last year.
The product-mix was further improved during the year with highest ever
special quality and value added products at 4.63 million tones - a growth of
24% over previous year. In 2009-10, the Company achieved the highest ever
production of Plates in BQ/SAILMA/IS-2062/ASTM etc. grades at 401,000 tones,
recording a growth of 47%, highest ever production of special quality semis at
Durgapur steel plant at 886,000 tones and highest ever Long Rail production of
about 1.20 lakh tones, a growth of 13% over CPLY. The company is now producing
almost 100% of TMT in special earthquake resistant (EQR) grade to make quality
steel available for the infrastructure segment.
Several products were developed during the year viz. Creep Resistant
plates for use in the construction of shell plates of Blast Furnaces, Boiler
Quality thicker gauge plates for use in high capacity boilers, High Tensile
plates with improved corrosion resistance for manufacture of railway coaches,
'Z' quality DMR 249 A plates for defence sector at BSP; Micro alloyed wheel and
axle for railways at DSP; Quenching and Tempering plates for Gun carriage, API
X 65 ERW pipes at RSP and High strength formable quality steel and thin gauge
high strength HR Coils for chassis manufacturing and pre-fabricators, auto,
cylinders application (EN 10120 P 265/P310 Nb) at BSL.
SAIL plants improved operational efficiency in major techno economic
parameters by achieving best ever coke rate at 517 Kg/thm; highest ever BF
productivity of 1.57 T/m3/day; highest ever converter lining life at 11,036
blows in converter at Bhilai steel plant; best ever Coal Dust Injection (CDI)
rate; highest ever power generation at 568 MW and the best ever Specific energy
consumption at 6.72 Gcal /tcs during 2009-10.
Raw Materials
Slow down in the global steel industry during 2009-10 also witnessed
general decline in raw materials prices. In order to reduce adverse impact of
costly imported coking coal on cost of production, the company has taken
measures for reduction of imported coking coal in the overall coal blend. The
company has fulfilled the requirement of iron ore from its captive mines for
its steel plants by producing about 23.44 million tonnes during 2009-10. The
production of fluxes from captive mines was 2.31 million tonnes. During
2009-10, continued thrust on production in SAIL's captive collieries resulted
in record annual production of over 1.36 million tonnes, registering a growth
of 34%. After obtaining all statutory clearances, small scale production from
Tasra coking coal mine has been started in November, 2009. Action for
engagement of Mine Developer cum Operator (MDO)
for Tasra and Sitanala coking coal mines is in progress.
The iron ore requirement is estimated to go up to about 43 million
tonnes after completion of modernization and expansion plan of SAIL. For
continuation of mining operation, stage-I forestry clearance/ temporary
forestry clearance has been obtained for Gua, Barsua, Kiriburu and
Meghahatuburu iron ore mines. The matter for grant of forestry clearances is
also being actively pursued with the respective state governments of Jharkhand
and Orissa for other mines. State Government of Jharkhand has accorded 'in-principle'
approval for renewal of Budhaburu lease of Chiria iron ore mine. However, delay
in renewal of balance leases of Chiria and Gua and delay in grant of
Prospecting License for Thakurani mines are affecting the security of enhanced
requirement of iron ore for steel plants. As a mid-course correction, steps
have been initiated for expansion of capacity of existing mines with
beneficiation facilities. Lease for Rowghat "F" deposit has been
granted and action for development of stateof- the art mine of 14 mtpa ROM
capacity is in progress as an alternative source of iron ore to Bhilai Steel
Plant (BSP). The land acquisition and construction of rail link between Dalli-
Rajhara and Rowghat are also under progress.
"SandT Mining Company Private Limited" a joint venture company
of SAIL and Tata Steel Limited, is exploring various opportunities for
acquisition and development of coal mines and setting up coal washeries. The
company is also making attempts for allocation of new coking coal as well as
thermal coal blocks to it for captive mining to enhance indigenous coal
availability.
SALES and
MARKETING REVIEW
The company has recorded domestic sales of 11.78 million tones during
FY'09-10 registering over 6% growth over previous year. Exports at 0.33 million
tones also grew by 31% over FY'08-09. Sales of value added steel grew to 4.5
million tones and constituted 37% of total domestic sales. Major categories
recording growth over previous year were: Wire Rods-13.9%; Plates-10.5%; Hot
Rolled Coils-10.2%; Medium Structurals- 17.6%; Heavy Structurals-35.8%. During
the year supply of Long Rails (130m/260m) to Indian Railways were increased by
13.7% over previous year. Supply of 26 meter Long Rails also registered a
growth of 8.1% over previous best achieved in FY'08-09. New records were also
set in supplies of Loco wheels and Loose Axles to Indian Railways during the
year.
During the year 2009-10, the company added two Warehouses and two
Customer Contact Offices to its distribution network. With this, SAIL's marketing
network has expanded to 37 Branch Sales Offices (BSOs), 26 Customer Contact
Offices (CCOs) and 67 Warehouses. The company also expanded its dealer network
in 2009-10 by appointing 700 dealers during the year. As on 1st
April, 2010 SAIL has a wide network of 2508 dealers spread over 630 districts
of the country. Sales to dealers at 6.04 lakh tones in FY'09-10 registered a
growth of 17.3% over previous year.
The company strengthened its presence in neighbouring and traditional markets
and exported 3.27 lakh tones steel during the year. The main products exported
were Billets, Plates, HR Coils, GC Sheets and Structurals. New markets to which
exports were undertaken during the year were
Improvements in logistics were also undertaken during FY'09- 10 for
better customer service and 1.33 million tones steel items were transported and
delivered at customers' premises by SAIL. This was an improvement of 25% over
FY'08-09.
PROSPECTS
Indications for global recovery have gained strength with IMF projecting
growth in World Output at 4.6% and 4.3% for 2010 and 2011 respectively. The
rebound in world trade volume is expected to be even stronger at 9% after a
negative growth of 11% in 2009. IMF is also optimistic about performance of
Indian economy and has revised its projection of 8.8% for 2010, forecast in
April, 2010 to 9.4% in the July, 2010 update.
After a dip in growth in 2008-09, Indian economy is showing signs of
recovery with inflation being the only cause of concern. Robust industrial
growth in the initial months of fiscal 2010-11 has raised hope of a strong
recovery for the Indian economy for 2010-11. Economic Advisory Council to the
Prime Minister has projected a growth of 8.5% for 2010-11, which is expected to
touch 9% in 2011-12. The buoyancy in growth is expected to be on account of
manufacturing sector growing at double digit, and recovery in agriculture
projected to grow at more than 4%. Services are expected to maintain their
trend rate of growth at 9% and above. The general economic environment in
GROWTH PLAN
Considering the fast growing demand for steel in the country, the
Company is currently implementing growth plan to enhance its Hot Metal capacity
from the level of 13.8 million tones in a phased manner. Under the ongoing
phase-I of modernization and expansion plan, hot metal production capacity will
get expanded to 23.46 million tonnes by 2012-13. The growth plan, besides
targeting higher production, also addresses the need for eliminating technological
obsolescence, achieving energy savings, enriching product-mix, reducing
pollution, developing mines and collieries, introducing customer-centric
processes and developing matching infrastructure facilities.
To maintain its current dominance in the domestic market and to meet the
future challenges, SAIL is working on a long term strategic plan 'Lakshya
2020', which will steer the company towards meeting its strategic objectives of
achieving profitability through growth and customer satisfaction.
MODERNISATION and
EXPANSION PROJECTS
SAIL's modernisation and expansion plan comprises capital projects
relating to 'Expansion', 'Value Addition/Product-mix improvement',
'Technological Up gradation/ Modernization of existing assets' and 'Sustenance
including Debottlenecking, Additions, Modifications, Replacements and
Environment' related projects.
The modernization and expansion plan includes installation of new Coke
Oven Batteries, new Sinter Plants, new Blast Furnaces of bigger capacity with
up gradation of existing blast furnaces, new Steel Melting Shops/ addition of
Converter in old shop, installation of new Mills etc. which will increase share
of finished steel in saleable steel. Along with the addition of new facilities,
most of the existing facilities are also being upgraded to enable production of
value added steels, reduce energy consumption and for improvement in
productivity, etc.
The expansion plan is being implemented simultaneously in all the Plants
including mines and requires matrix planning, involvement/ coordination with a
large number of agencies, prudent fund management, selection of right
technology etc. SAIL has already initiated actions in all these areas to
prepare the organization accordingly.
SAIL Board gave `in-principle' approval during the year for New
Normalising Furnace, On-line eddy current testing machine and replacement of
gas holder at BSP; enhancement of production capacity at Gua Iron Ore Mine
along with beneficiation facilities and Installation of 4MTPA capacity Pellet
Plant and Installation of Tertiary Crusher at Meghahatuburu Iron Ore Mine at
RMD; Development of Sitanala Coal block at ISP and Revival of Jagdishpur unit
of SAIL with an estimated outlay of about Rs. 33500.000 Millions. Further,
cumulative approval of about Rs. 450000.000 Millions has been accorded by SAIL
Board for modernization and expansion plan till date.
Hot Trials have started at Salem Steel Plant (SSP) in August, 2010 after
expansion. For ISP, BSP, DSP, RSP and BSL Expansion, execution of various packages
is in progress
AWARDS AND
ACCOLADES
·
Company's excellent performance got recognition
from several quarters during the year 2009-10. SAIL employees bagged the
maximum number of Shram and Vishwakarma awards, declared in the country in
August, 2009, amongst both private and public sector organizations. 63
employees of SAIL received Vishwakarma Award 2007 - 52% of total workmen
awarded in the country. 21 of SAIL employees were conferred with the Shram
Award 2007 - over 40% of the total workmen awarded in
·
At the SCOPE and DPE function held in October,
2009, SAIL had the unique distinction of bagging four awards from Hon'ble Prime
Minister, which was highest amongst all PSUs. This included SCOPE Gold Trophy
for Excellence and Outstanding Contribution to Public Sector Management in the
"Institutional" category for the year 2006-07 and two MoU Excellence
Awards in the categories 'Mining and Metals' and 'Listed companies' for the
year 2007-08. Gold Trophy of "SCOPE Meritorious Awards-2007-08 for Research
and Development, Technology Development and
·
Innovation" was also bagged by SAIL. SAIL has
been the proud recipient of "Best Presented Accounts Award" for the
year 2008" from South Asian Federation of Accountants.
Other major awards received by the company include “India Pride Awards”
Excellence in PSU under the award category “Metal, Mineral and Trade”;
“National Centre for Promotion of Employment for Disabled People (NCPEDP) Shell
Hellen Keller Award 2009"; "Indian Chamber of Commerce, PSU Excellence
Award”.
In addition, SAIL plants/Units have won recognitions as under:
·
BSP has won the prestigious Prime Minister’s Trophy
for best integrated steel plant in
·
BSP won "Inssan Award" for the year
2007-08 in recognition of excellence in implementation of Suggestion Scheme and
"National Energy Conservation Award" for the year 2009 in recognition
of efforts in energy conservation in integrated steel plant.
·
DSP received "ISTD- Vivekanand National
Award" for the year 2008-09 from Indian Society for Training and
Development, "National Energy Conservation (NEC) Award- 2009" in the
Integrated Steel Plant Sector from Ministry of Power.
·
BSL received "Performance Excellence
Award" for the year 2007-08 from Indian Institute of Industrial
Engineering, Mumbai in recognition of Excellent Performance; "Inssan
Award" for the year 2008 from Indian National Suggestion Scheme
Association.
·
SSP won "Greentech Safety Award" - silver
award under Metal sector for the year 2007-08 from Green Tech Foundation, New
Delhi in recognition for Best Safety Performance on May'2009; "CSR
Award" for the year 2008
·
from Govt. of Tamil Nadu in recognition for Best
CSR activities.
·
VISL got selected for "International Quality
Award" in the gold category by Business Initiative Direction, at
Mergers and
Acquisitions:
·
Consequent upon Ministry of Corporate Affairs’
Order dated 28th July, 2009, Bharat Refractories Limited (BRL) has been
amalgamated with SAIL w.e.f. 1.4.2007. The appointed date of amalgamation being
1st April, 2007, Company has revised the accounts of SAIL for the financial
year ended 31st March, 2008 and 31st March, 2009, which are enclosed for
approval of the shareholders. After amalgamation, erstwhile BRL, has become a
unit of SAIL and renamed as SAIL Refractory Unit (SRU). The revival of the unit
is under progress and its performance has improved after coming into the fold
of SAIL.
·
Merger of Maharashtra Elektrosmelt Limited (MEL)
with SAIL : After obtaining "No Objection Certificate" (NOC) from
Government of Maharashtra (GOM) for transfer of land to SAIL, the process of
the merger has since been initiated, and the Scheme of Amalgamation submitted
to Ministry of Corporate Affairs and one hearing on the matter has already taken
place. As directed by Ministry of Corporate Affairs, the approval of the
shareholders is being obtained for the Scheme of Amalgamation.
·
The process of acquisition of refractory unit of
Burn Standard Company Limited(BSCL), as a subsidiary company of SAIL is at its
preliminary stage.
·
After acquisition of the assets of erstwhile
Malvika Steel, SAIL is in the process of developing the Jagdishpur Steel unit
in a phased manner, starting with an annual production capacity of 1,50,000 tonnes
of TMT Bars, 13,000 T of Crash Barriers Steel and 10,000 T Galvanised
Corrugated Sheets. Also, efforts are being made to set up a 475 MW Gas based
power plant at this location.
Joint Ventures:
- After
entering into a Joint Venture Agreement with Shipping Corporation of India
(SCI) a joint venture shipping company has been incorporated in May, 2010
for bulk transportation of SAIL's cargo initially for 1.2 million tonnes
per annum, which would further scale upto 4 million tonnes per annum.
- MOU has been
signed with NMDC Limited to jointly develop the limestone mine at Arki
located in Solan district of
- Himachal
Pradesh with envisaged production capacity of 3 million tonnes per annum.
After development of the Arki limestone mine, SAIL will have a captive source
of limestone with the advantage of assured supplies of this critical raw
material of good quality at reasonable price.
- Towards
achieving the Government's decision of making PSUs self reliant in the
area of coking coal, International Coal Ventures Private Limited (ICVL)
has been set up as a Joint Venture Company with SAIL, CIL, RINL, NMDC and
NTPC as its promoter companies. ICVL was incorporated on 20th May, 2009
and is actively scouting for coal assets and coal companies in
Apart from above, following strategic initiatives are taken to augment
technological interventions on a long term basis:
·
MoU signed with POSCO and a detailed feasibility
study is being conducted to explore a) Manufacture and
·
commercialization of CRNO steel; and b) Exploration
of upstream and downstream opportunities in utilizing FINEX technology.
·
MOU has been signed with M/s Kobe Steel Limited
(KSL) for exploring the technical and economic feasibility of ITmK3 technology
for producing premium grade iron in the form of nuggets.
·
Dialogue on technology intervention in steel and
related areas has been initiated with
·
Corporation (NSC).
MANAGEMENT
DISCUSSION AND ANALYSIS REPORT
INDUSTRY STRUCTURE
and DEVELOPMENTS
General Economic
Environment
World output growth for 2010 projected at 4.6%, signals a recovery
compared to recessionary trend in 2009 when the global output shrank by 0.6%.
The recovery is attributable to strong performance by the emerging economies,
recovery in the developed world, restocking of inventories and rebound in
global trade which had shrunk by 11.3% in 2009. During 2010 and 2011, the world
trade volume of goods and services is expected to increase by more than 9% in
2010.
While the emerging and developing economies are performing strongly, in
the developed world recovery in US is better than Europe and
The challenges for growth are in terms of a pressing need in the
advanced economies for medium term fiscal consolidation and a clear cut time
frame to bring down gross debt to GDP ratio. With a fiscal deficit hovering at
9% of GDP for the advanced nations, based on current policies, the debt to GDP
ratios of these economies are expected to exceed 100% of GDP by 2014. There is
hence a need for withdrawal of Government stimulus for overall fiscal
consolidation. The pace of the withdrawal however, has to be managed in a
manner that it does not impair growth. The near term risk is in the form of
sovereign liquidity and solvency in
For the emerging economies, public debt ratio ranges between 30- 40% of
GDP and is likely to fall given the high GDP growth. The challenge to the
emerging economies is mainly management of inflation.
Indian Economy
The revised estimate for 2009-10, has projected a GDP growth of 7.4%
compared to 6.7% for the previous year. The impact of bad monsoon is visible on
performance of agriculture sector which has declined by 0.2%, however, strong
growth of 9.3% for industry and 8.5% for services have led to the recovery of
overall GDP.
The index of industrial production has grown at 10.4% for April to March
2009-10 compared to 2.8% in 2008-09. The growth of core infrastructure
industries during this period was 5.5% against a growth of 3% in the previous
year. Manufacturing sector with a growth of 10.8% and mining at 10.6% have been
the growth contributors for industry. On the demand side, capital goods and
consumer durables have led the recovery at 19.2% and 26% respectively.
Exports which registered a negative growth of 4.7% during 2009-10
started showing a recovery in the later part of the year while the imports
declined by 8.2%. Inflation continues to be a worry with the point to point
measure for March 2010 at 9.9%.
There is however a degree of optimism regarding the performance of
Indian economy. IMF has projected a growth of 9.4% for 2010 and 8.4% for 2011.
Global Steel
Industry
The recovery in the global steel industry became evident from June 2009
when the crude steel production crossed 100 million tonnes after a gap of 8
months. The capacity utilization which had dropped from 86% in July 2008 to 58%
in December 2008, recovered to 80% in February 2010. It has become stagnant
around this level for last 6 months.
World Steel Association (WSA) in its latest demand forecast has
projected a world wide steel consumption growth of 10.7% during 2010 and 5.3%
in 2011. This is a strong reversal from a negative growth of 1.6% in 2008 and
6.7% decline in 2009. The emerging economies which remained positive in growth
through the crises will be driving the world growth. In the major developed
economies, growth will be slower with projected demand for 2011 below the 2007
level. Only Asia and
The sharp recovery in global steel demand is attributable to Govt.
stimulus packages and inventory restocking. The risks to the growth are in
terms of fiscal balancing, dealing with inflationary pressure and increased raw
material price volatility for the steel sector.
in 2009 - a growth of 25% over the previous year - will see a lower
consumption growth in subsequent years. The projected finished steel
consumption for
Indian Steel
Sector
The consumption of finished carbon steel in
WSA has projected a growth of more than 13% for
OPPORTUNITIES and
THREATS FOR SAIL
Opportunities
·
Threats
·
Global economic recovery is fragile. The developed
economies are under pressure for reconstructing their financial sectors and
achieving fiscal consolidation without impacting growth. Emerging economies, on
the other hand, have to contend with the threat of inflation. A slowdown in
global economic recovery will impact overall steel demand adversely.
·
With significant excess capacity in the global
steel industry during 2009-10. Cheap imports from
·
Delays in environmental clearances and renewal of
mining leases could lead to uncertainty with regard to raw material linkages
and delay fresh capacity becoming operational.
OUTLOOK
The medium to long term outlook for steel in
During 2009-10, SAIL has taken various marketing initiatives and
achieved record annual sales at 12.4 million tonnes in FY'09-10, a growth of 8%
over FY'08-09. This was made possible with a number of initiatives taken to
service customers demands better. Some of he new initiatives taken during FY
'09-10 are given as under
·
Significant growth achieved in sales of Auto grade
HRC, LPG grade HRC, ATM Grade Plates, SAILMA 550/550HI Grade Plates.
·
Many new products were developed in 2009-10 such as
3mm Chequered Coils, SAIL-MC60 HR Coils, C30 HMn 1.2 HR Coils, SAE 1541 HR
Coils and API X60 ERW Pipes at RSP, DMR 249B Plates at RSP and BSP, ATM Grade
Plates at BSP.
·
Production and sale of TMT re-bars stabilized in
IS1786 Grade D. IS 1786 Grade D is considered to be a superior grade having
better earth quake resistant properties.
·
It has been the continuous endeavour to improve
customer satisfaction. As a step in that direction, door deliveries to
customers were increased to a record level of 1.325 million tonnes registering
25% growth over CPLY.
·
SAIL has the largest marketing network among all
steel producers in the country. During FY '09-10, marketing network was further
expanded by opening two more Warehouses and two new Customer Contact Offices.
The marketing network of SAIL as on 1st April, 2010 consists of 37 Branch Sales
Offices, 67 Warehouses (Departmental and Consignment Agencies) and 26 Customer
Contact Offices.
STRENGTH AND WEAKNESSES
Strength
The diversified product mix and multi location production units are an
area of strength for the company. SAIL as a single source is able to cater to
the entire steel requirement of any customer. Also, it has a nation wide distribution
network with a presence in every district in
SAIL has the largest captive iron ore operations in
SAIL's captive power plants take care of about 70% of its total power
need. With augmentation of capacities of power plants operated under Joint
Venture, the Company will continue to have security in this key input in future
as well.
SAIL's large skilled manpower base is a source of strength. There is
emphasis on skill based training in the company. The expanded capacity will be
operated with more or less similar number of employees in future. In fact, with
selective recruitment and regular attrition on account of superannuation, the
number of employees is likely to come down over time, while there will be
improvement in overall skill set.
The Company has one of the biggest in-house research and development
centres in
Low overall borrowings lend strength to the company's balance sheet as
it can mobilize resources while keeping the leveraging at manageable levels.
Weakness
SAIL is dependent on the market purchase for a key input – coking coal.
As
A large manpower base results in higher manpower cost as a proportion of
turnover for the company. Although there has been significant reduction in
manpower through natural and other separations, the manpower strength in SAIL
is still higher than the industry average.
A part of the operations in the company continues to be from energy
inefficient processes viz. open hearth and ingot route of production, which
will be eliminated only after the completion of the current expansion program.
At present around 20% of the products are in the form of semi-finished
steel, resulting in lower value addition. This will continue till new rolling
mills planned under expansion plan contribute to value addition as almost all
semis will be converted to finished steel.
REVIEW OF
FINANCIAL PERFORMANCE
Financial Overview
of SAIL
Global business witnessed a worldwide downturn in all sphere of business
including steel industry in the second half of 2008-09. The global economy
started recovering gradually during 2009-10. The company reoriented production
in line with market demand, substantially increased production of value added
steel and achieved the saleable steel production of 12.6 MT representing 114%
of capacity utilisation. Sales volume of saleable steel also improved by 7 % at
12.1 MT as against 11.3 MT in 2008-09. The steel prices which were at its
lowest during October-December'08, started recovering gradually from January
2009 onwards, but at a very slow pace. Towards the end of current year, the steel
prices reached its peak for the financial year 2009-10.
Despite higher sales volume of saleable steel for FY 2009-10, SAIL
achieved the turnover of Rs. 439350.000 Millions which was lower by 9.9 % as compared
to previous year mainly due to reduction in average net sales realisation of
saleable steel during 2009-10. However, as compared to CPLY, the profitability
improved due to higher saleable steel production (1.1%) and sales volume (7%),
improved production of value added products (24%), improvement in BF
productivity, reduction in coke rate and specific energy consumption, favorable
impact of input prices, particularly of imported coal, nickel, ferro manganese,
silico manganese, aluminium etc., reduction in ocean freight on imported coal,
reduction in stores and spares consumption, repair and maintenance expenses,
optimization in procurement, prudent funds management, curtailing cost of
production, etc. The profitability was affected due to lower net sales
realisation, increase in royalty on minerals, higher interest cost and
depreciation etc. The profit before tax of Rs. 101320.000 Millions was higher
by Rs. 7330.000 Millions over previous year (Rs. 93990.000Millionsa).]
Plant-Wise
Financial Performance (Before Taxes)
The profit before tax of most of the plants/units during 2009-10 was
higher except at Bhilai Steel Plant, Durgapur Steel Plant, SAIL Refractory Unit
and Central Units. However, the Profit after Tax (PAT) of SAIL during 2009-10
was increased by ` 584 crore due to strategic actions taken by the management
like increase in value added products, improved techno-economic parameters,
optimization in procurement, budgetary control for stores and spares and repair
and maintenance expenses, prudent cash management, etc.
MATERIALS
MANAGEMENT
The downturn in prices continued into 2009-10, and so were the efforts
to reduce the costs. Controls on new purchases, receipts were rigorous and
there was thrust on reduction in specific consumption. A number of new items
were also brought under central procurement to benefit from the economies of
scale. The second half of the year saw volatility in the price of commodities
and the strategy of frequent tenders and short validity of prices was adopted
to optimize costs. During the year Reverse Auction was increasingly used for
procurement of revenue and capital items at competitive prices and the value of
such purchases through Reverse Auction route increased 300% over 2008-09.
Towards raw material security, international sources of Low Silica Limestone
were identified and imports made for ongoing field trials.
FOREIGN EXCHANGE
CONSERVATION
The Company endeavors to procure equipment, raw materials and other
inputs from indigenous sources to the extent they become available to the
company at the commercially acceptable prices/costs and meet the requirements
of the technologies being used in the company. Further, the Company also takes
reasonable steps to ensure that all receivables in foreign exchange, which are
due to the company, are realized within contractual period. As regards
incurrence of expenditure in foreign currencies, besides exercising the
requisite control, it is also ensured that it is in the commercial interest of
the Company.
PROJECT MANAGEMENT
The Company incurred a capital expenditure of Rs.106060.000 Millions
during 2009-10.
Major Projects
completed
The following projects were completed during the year:
·
Sendzimir mill upgradation; Rotary Polisher; Roll
Grinding Machines; 2 nos. Ladle cranes; Load Block Sub-Station; Load Centre
Sub-Station under SSP Expansion.
·
New Normalising Furnace at Plate Mill; Cooling bed,
Pilers and other equipment in Plate Mill (expansion packages), Main Step Down
Station-V; Electro Magnetic stirrer for Bloom Caster in Steel Melting Shop
(SMS)-II; Thyristorisation of Plate Mill stands; 30 MLD Sewage Treatment Plant
at Bhiali Steel Plant.
·
Online ultrasonic testing machine at plate mill;
New Coke Oven Gas Holder; Uprating of Turbo Blower; Rebuilding of Coke Oven
Battery-4 at Rourkela Steel Plant.
·
Provision of Air Turbo Compressor and Oxygen Turbo
Compressor at Oxygen Plant; Coking Coal Storage Facilities in Coal Handling
Plant; Extension of covered slag yard of SMS-II; Upgradation of Blast Furnace-3
Stoves at Bokaro Steel Plant.
·
Installation of Bloom Caster in SMS at VISL.
·
Replacement of 12 no. of Medium HP Locos by high HP
locos at different plants.
Major Capital
(AMR) Schemes presently in progress
Capital Projects valued at about Rs.36000.000 Millions (costing more than
Rs.200.000Millions) are under implementation at SAIL Plants. The objective/
benefit envisaged for major projects is given below:
Bhilai Steel Plant
(BSP)
·
4th Air Separation Unit of 700 tonnes per day
capacity is being installed in Oxygen Plant-II to meet the increasing
requirement of oxygen, nitrogen and argon.
·
Rebuilding of Coke Oven Battery No.6 has been
taken-up for incorporating state-of-the-art pollution control equipment to
achieve the latest statutory emission norms of Ministry of Environment and
Forests.
·
Coal Dust Injection system in Blast Furnace-4 is a
technical necessity for reduction in coke rate and improvement of the blast
furnace productivity.
·
A new Oxygen Plant of 700 tpd capacity is being
installed to produce Oxygen mainly for enrichment in blast furnaces and
production of other gases (Nitrogen and Argon) for steel making process.
·
Simultaneous Blowing of BOF Converters of SMS-II
has been taken up for enhancing the production capacity of the shop from 1.68 Mtpa
to 1.85 Mtpa. For this, major facilities envisaged are strengthening of
secondary refining facility, piping network for oxygen, nitrogen, water and
other utilities, material handling facilities like ladles, slag pots, cranes
etc.
Bokaro Steel Plant
(BSL)
·
Coal Dust Injection in BF-2 and 3 system is a
technical necessity for reduction in coke rate and improvement of the blast
furnace productivity.
·
2nd Ladle Furnace in SMS-II would facilitate
production of value added steel, especially steel grades with low sulphur
content, reduction in return heats, savings in oxygen consumption and ferro
alloys, besides creating a buffer station for longer sequence at casters and
flexibility in operation.
·
The replacement of 6 no. of Battery Cyclones of
720,000 m3/hr with 6 no. of Electrostatic Precipitators of capacity 900,000 m3/
hr is being carried out in three machines of the Sinter Plant for cleaning of
sinter process gas to meet the statutory requirement of emission level of
outlet dust at 150 mg/Nm3 as prescribed by Central Pollution Control Board.
·
One new Turbo-Blower along with associated
facilities is being installed to meet the enhanced cold blast requirement of
Blast Furnace-2 at blower discharge volume of 4000 Nm3/min and discharge
pressure of 3.9 kg/ cm2 at blower end.
·
The Blast Furnace-2 is being upgraded to increase
the working volume from 1758 m3 to 2250 m3 with higher productivity level
(2t/m3/day) by incorporating state-of-art technology in the blast furnace
proper.
·
Rebuilding of Coke Oven Batteries 1 and 2 with
pollution control facilities has been taken up for achieving the emission
standards as per CPCB norms of Govt. of India.
IISCO Steel Plant
(ISP)
- Rebuilding of
Coke Oven Battery No.10 has been taken-up wherein state-of-art pollution control
equipment shall be incorporated to achieve the latest statutory emission
norms of Ministry of Environment and Forests (MOEF) along with the renewal
of By-product Plant.
RMD
·
The proposal for enhancing loading capacity at
Bolani Iron Ore Mines, modification of Railway line, overhead electrical work
and signalling and telecommunication has been taken up to enable full rake (in
one stretch) loading at both Fines as well as Lump Siding, resulting in reduced
loading time and savings on demurrage.
·
Enhancement of production capacity of Meghahatuburu
Iron Ore Mines (Main package) has been taken up to increase production capacity
at Meghahatuburu Iron Ore Mines from 4.3 Mtpa to 6.50 Mtpa of finished product.
·
Replacement of locos at BSP, RSP and BSL has been taken
up to replace the old medium horse power locos by high horse power locos.
Modernisation and
Expansion Plan
·
Work is in progress for various approved packages
of Modernisation and Expansion plan of IISCO Steel Plant, Salem Steel Plant,
Bokaro Steel Plant, Bhilai Steel Plant, Rourkela Steel Pant and Durgapur Steel
Plant. Expansion of Salem Steel Plant (SSP) is in advance stage of completion
and the facilities shall be completed progressively by 2010-11.
·
Cumulatively orders placed under expansion and modernization
are of the order of about Rs. 450000.000 Millions
IN-HOUSE DESIGN
and ENGINEERING
Centre for Engineering and Technology (CET) is providing its services in
the areas of modernisation, technological upgradation and, additions,
modifications and replacement schemes to plants and units within SAIL and
clients outside SAIL - both in
Contingent
Liabilities
|
Particulars |
31.03.2010 (Rs.
In Millions) |
|
i) Claim against the company pending appellate / judicial decisions |
|
|
a. Excise Duty |
18227.100 |
|
b. Sales Tax on inter – state Stock transfers from plants to stockyards
* |
8674.400 |
|
c. Other Sales Tax matters |
2029.100 |
|
d. Income Tax |
1349.900 |
|
e. Other duties cess and levies |
3759.300 |
|
f. Civil matters ** |
2520.100 |
|
g. Miscellaneous ** |
2820.600 |
|
*No liabilities has taken is expected to arise as sales tax has been
paid on eventual sales **includes claims of Rs.257.000 millions against which there are
counter claims of Rs.261.200 millions |
|
|
ii) Other claims against the company not acknowledged as debt: |
|
|
a. Sales Tax |
49.000 |
|
b. Duties, cess and levies |
130.500 |
|
c. Civil matters $ |
205.300 |
|
d. Miscellaneous $ |
6930.400 |
|
$ Includes claims
of Rs.118.000 millions against which there are counter claims of Rs.118.000
millions |
|
|
iii) Disputed income tax / service tax demand on joint venture company
for which company may be contingently liable under the joint venture
agreement |
269.400 |
|
iv) Guarantees/counter-guarantees given to
banks/excise authorities on behalf of a subsidiary company and a joint
venture company. |
3.700 |
|
v) Bills drawn on customers and discounted
with banks. |
172.900 |
|
vi) Price escalation claims by contractors/suppliers and claims by
certain employees, extent whereof is not ascertainable |
-- |
The company is in trade terms with:
· Vijayan and Vijayan Retreading Limited
· Hydrokrimp A.C. Private Limited
· Vijaya Hot Top Products
· Vijaya Industrial Products
· Pragathi Industrial Products
· Ferro Insulation (Private) Limited
The
company has joint ventures with the following:
·
SAIL,
Bansal Service Centre Limited
·
Metaljunction.Com
Private Limited
·
UEC SAIL
Information Technology Limited
·
Romelt
SAIL (
·
N.E.
Steel and Galvanising Private Limited
·
Bokaro
Power Supply Company Private Limited
·
Bhilai
Electric Supply Company Private Limited
FIXED ASSETS:
· Land (freehold and leasehold)
· Right and patents
· Railway lines
· Railway sidings
· Roads
· Bridges
· Culverts
· Buildings
· Plant and machinery
· Furniture, fittings
· Vehicles
· Water supply and sewerage,
· EDP equipments
· Miscellaneous articles
UNAUDITED
FINANCIAL RESULTS FOR THE NINE MONTHS ENDED 31ST DECEMBER 2010
(RS.
IN MILLIONS)
|
Particulars |
Quarter
ended |
Year
ended |
|
|
31st
March2011 |
31st
March2011 |
|
|
(Unaudited) |
(Audited) |
|
(a)
Net Sales / Income from operations |
|
|
|
i)
Gross sales |
131354.600 |
470405.000 |
|
ii) Less : Excise Duty |
11922.000 |
43217.900 |
|
Sub total (a)
(i-ii) |
119432.600 |
427187.100 |
|
(b) Other operating income |
2372.000 |
7140.800 |
|
Sub
total 1 (a) + (b) |
121804.600 |
434327.900 |
|
|
|
|
|
Expenditure |
|
|
|
a) Increase(-)/Decrease in
stock-in-trade and work in progress |
34.000 |
(13526.700) |
|
b) Consumption of Raw
Materials |
54040.300 |
202479.100 |
|
c) Purchase of traded goods |
12.400 |
42.200 |
|
d) Consumption of stores &
spares |
6332.700 |
23950.800 |
|
e) Employees' cost |
20477.800 |
76233.300 |
|
f) Power & Fuel |
9450.600 |
35876.400 |
|
g) Depreciation |
3871.400 |
14858.000 |
|
h) Other Expenditure |
9657.900 |
39574.500 |
|
i) Less: Finished Products
Internally Consumed |
2012.000 |
7445.900 |
|
Sub
total 2 (a) to (h) - (i) |
101865.100 |
372041.700 |
|
|
|
|
|
Profit from operations before
other income, interest and exceptional items ( 1-2) |
19939.500 |
62286.200 |
|
|
|
|
|
Other
Income |
|
|
|
i) Interest earned |
4140.900 |
13811.700 |
|
ii) Other Income |
(61.100) |
594.700 |
|
Sub
total (i+ii) |
4079.800 |
14406.400 |
|
|
|
|
|
Profit
before interest and exceptional items ( 3+4) |
24019.300 |
76692.600 |
|
Interest |
1770.300 |
4749.500 |
|
Profit
after interest but before exceptional items ( 5-6) |
22249.000 |
71943.100 |
|
Exceptional items |
0.000 |
0.000 |
|
|
|
|
|
Profit
from ordinary activities before tax ( 7+8) |
22249.000 |
71943.100 |
|
Minority
Interest |
0.000 |
0.000 |
|
Net
Profit after Minority Interest ( 9-10 ) |
22249.000 |
71943.100 |
|
|
|
|
|
Tax
Expense |
|
|
|
(a) Current Tax |
7767.300 |
23673.800 |
|
(b) Deferred Tax Liability / Assets ( - ) |
(767.700) |
(630.400) |
|
(c) Earlier years |
(56.700) |
(147.700) |
|
Sub-Total ( a to c ) |
6942.900 |
22895.700 |
|
|
|
|
|
Net
Profit from ordinary activities after Tax ( 11-12 ) |
15306.100 |
49047.400 |
|
Extraordinary items (net of
tax expense Rs. Nil) |
0.000 |
0.000 |
|
Net
Profit for the period (13-14) |
15306.100 |
49047.400 |
|
|
|
|
|
Paid up Equity Share Capital (Face value : Rs.10 per share) |
41304.000 |
41304.000 |
|
|
|
|
|
Reserves (excluding
revaluation reserve ) as per balance sheet of previous accounting year |
-- |
329390.700 |
|
|
|
|
|
Basic and Diluted Earnings per
share before and after extraordinary items ( Not Annualised ) ( Rupees ) |
3.71 |
11.87 |
|
|
|
|
|
Debt Service Coverage Ratio
(Number of times) |
-- |
7.68 |
|
Interest Service Coverage
Ratio (Number of times) |
-- |
7.06 |
|
|
|
|
|
Aggregate of public share holding |
|
|
|
-
Number of shares |
58,50,96,015 |
58,50,96,015 |
|
-
Percentage of share holding |
14.16 |
14.16 |
|
|
|
|
|
Promoters and Promoter group shareholding |
|
|
|
(a) Pledged / Encumbered |
|
|
|
- Number of Shares |
- |
- |
|
- Percentage of shares (as a % of the
total shareholding of the
promoter and promoter group) |
- |
- |
|
- Percentage of shares (as a % of the
total share capital of the company) |
- |
- |
|
|
|
|
|
(b) Non-Encumbered |
|
|
|
- Number of Shares |
3544690285 |
3544690285 |
|
- Percentage of shares (as a % of the
total shareholding of the promoter and promoter group) |
100.00 |
100.00 |
|
- Percentage of shares (as a % of the
total share capital of the company) |
85.82 |
85.82 |
NOTES:
i) The above results have been reviewed by the Audit Committee and taken
on record by the Board of Directors in their meeting held on 24th
June, 2011. The audited accounts are subject to review by the Comptroller and
Auditor General of India under section 619(4) of the Companies Act, 1956.
ii) The Board of Directors have recommended a final dividend of Re.1.20
per equity share, in addition to the interim dividend of Rs.1.20 per equity
share already paid, for the financial year 2010-11, thus taking the total
dividend to Rs.2.40 per equity share, subject to approval of shareholders.
iii) The Company has two subsidiary companies: a) IISCO Ujjain Pipe and Foundry Company
Limited (IISCO-Ujjain) and b) Maharashtra Elektrosmelt Limited (MEL). The
`IISCO-Ujjain’ is under liquidation. The
audited financial results of `MEL’ have been considered in the preparation of
consolidated financial results. The accounts of joint ventures and associate
companies have not been considered in the preparation of consolidated financial
results.
iv) During the year ended 31st March, 2011, the employees’
cost has increased due to additional provision of Rs.2574.0 millions (during
the current quarter ended 31st March, 2011-Rs. Nil) towards
employees’ related benefits. Further, employees’ costs for the year ended 31st
March, 2010, included reversal of estimated
provision for salaries and wages revision of Rs.15721.4 millions for the
period 1st January, 2007 to
31st March, 2009, arising out of implementation of revised salaries
and wages w.e.f 1st January, 2007.
v) The Other Expenses are net of write back of provision for backlog of
removal of overburden in mines amounting to Rs.936.6 millions pertaining to
earlier years, on account of change in the basis of calculation.
vi) Other operating income for the quarter and year ended 31st
March, 2011 include Rs.360.5 millions and Rs.1243.6 millions respectively,
being the write back of liability/excess payment in respect of disputed
electricity dues of Damodar Valley Corporation (DVC) for the year 2009-10,
arising out of order of the Appellate Tribunal of Electricity in favour of the
Company. However, the appeal filed by DVC in the matter for the period 1st
April, 2006 to 31st March, 2009, is pending before the Hon’ble
Supreme Court.
vii) The information on
investor’s complaints pursuant to Clause 41 of the listing agreement for the
quarter ended 31st March, 2011 is:
|
Opening
Balance |
Received during the quarter |
Resolved during the quarter |
Closing balance |
|
|
|
|
|
|
-- |
3 |
3 |
-- |
viii) The Company intends to issue
further public offer of equity shares in the financial year 2011-12.
AS PER
WEBSITE
COMPANY
PROFILE
Subject is the steel-making company in
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. Subject produces iron and steel at four integrated plants and
three special steel plants, located principally in the eastern and central
regions of
Subject's wide range of long and flat steel products is 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
With technical and managerial expertise and know-how in steel making
gained over four decades, Subject's Consultancy Division (SAILCON) at
SAIL has a well-equipped Research and Development Centre for Iron and
Steel (RDCIS) at
Major Units
Integrated Steel Plants
• Bhilai Steel Plant (BSP) in Chhattisgarh
• Durgapur Steel Plant (DSP) in West Bengal
• Rourkela Steel Plant (RSP) in Orissa
• Bokaro Steel Plant (BSL) in Jharkhand
• IISCO Steel Plant (ISP) in West Bengal
Special Steel Plants
• Alloy Steels Plants (ASP) in West Bengal
• Salem Steel Plant (SSP) in Tamil Nadu
• Visvesvaraya Iron and Steel Plant (VISL) in Karnataka
SUBSIDIARY
• Maharashtra Elektrosmelt Limited (MEL) in Maharashtra
JOINT VENTURES
• NTPC SAIL Power Company
Private Limited (NSPCL)
A 50:50 joint venture between Subject (SAIL) and National Thermal
Power Corporation Limited (NTPC Limited); manages the captive power plants at
Rourkela,
• Bokaro Power Supply Company Private Limited (BPSCL)
This 50:50 joint venture between SAIL and the Damodar Valley Corporation formed in January 2002 is managing the 302-MW power generating station and 660 tonnes per hour steam generation facilities at Bokaro Steel Plant. BPSCL has proposed to expand its capacity by installing 2x250 MW coal based thermal unit at Bokaro. In addition, construction activities are underway for installation of 9th Boiler (300T/Hr) and 36 MW Back Pressure Turbo Generator (BPTG) project at Bokaro.
A joint venture between SAIL and Tata Steel on 50:50 basis. This company promotes e-commerce activities in steel and related areas. New added services includes E-Assets sales, Events and Conferences, Coal Sales and Logistics, Publications etc.
• SAIL-Bansal Service Center
Limited
SAIL has formed a joint venture with BMW industries Limited on 40:60 basis to promote a service centre at Bokaro with the objective of adding value to steel.
• Bhilai JP Cement Limited
SAIL has incorporated a joint venture company with M/s Jaiprakash Associates Limited to set up a 2.2 MT slag based cement plant at Bhilai. The company shall commence cement production at Bhilai by March'2010, whereas clinker production at Satna shall start within 2009.
• Bokaro JP Cement Limited
SAIL has incorporated another joint venture company with M/s Jaiprakash Associates Limited to set up a 2.1 MT cement plant at Bokaro utilizing slag from BSL. Construction work expected to start by Oct’09 and cement production likely by July’2011.
• SAIL and MOIL Ferro Alloys
(Private) Limited
SAIL has incorporated a joint venture company with M/s
• S and Mining Company Private Limited
SAIL has incorporated a joint venture company with TATA Steel for acquisition and development of coal blocks/mines. New indigenous opportunities for coking coal development are being explored by the Joint Venture company for securing coking coal supplies.
• International Coal Ventures
Private Limited:
Towards achieving the target of making steel PSUs self
reliant in the area of coking coal, a joint venture company has been
incorporated comprising of five central PSU companies i.e. SAIL, Rashtriya Ispat
Nigam Limited (RINL), Coal India Limited (CIL), NTPC Limited and NMDC Limited.
The company is scouting for coal properties in
Ownership and Management
The Government of India owns about 86% of SAIL's equity and retains voting
control of the Company. However, SAIL, by virtue of its ‘Navratna’ status,
enjoys significant operational and financial autonomy
PRESS
RELEASE
SAIL
bags Golden Peacock Environment Management Award 2011
New Delhi, 27 June 2011
New Delhi:
Maharatna Steel Authority of India Limited (SAIL) has received the prestigious
Golden Peacock Environment Management Award for the year 2011. The award, in recognition
of SAIL’s initiatives and achievements in the field of environment management,
was presented by Union Minister for Home Affairs Shri P. Chidambaram on 24th
June, 2011 at a glittering function held in the Capital.
The Golden
Peacock Awards, instituted by the Institute of Directors, New Delhi, are
presented annually under various categories. The winners of the Golden Peacock
Awards for 2011 were finalised by a jury headed by Justice P.N. Bhagwati,
former Chief Justice of India and Member, UN Human Rights Commission, and
presented on the occasion of the 13th World Congress on Environment Management.
Speaking at a
panel discussion during the Congress on the theme of ‘Environmental Initiatives
for Corporate Sustainability’, SAIL Chairman Mr. C.S. Verma said that the steel
industry “is putting in concerted efforts and adopting a multi-pronged
strategy” to minimise the emission of greenhouse gases and to achieve greater
sustainable practices. Giving examples of SAIL’s achievements in this endeavour,
he pointed out that in the last four years the company has succeeded in
reducing particulate emissions by 52%, specific water consumption by 11% and
specific energy consumption by 5%, and increased solid waste utilisation by
18%.
SAIL has
continuously been taking proactive steps in holistic environment management and
preservation. The Corporate Environmental Policy of SAIL also emphasises upon
the company “conducting its operations in an environmentally responsible
manner, complying with applicable regulations and striving to go beyond”. In
accordance with the National Environment Policy, the company has built a
management system at its different plants and units for further environmental
protection, including acquisition of certification under ISO: 14001. All major
units of SAIL, covering both production and service departments, are ISO: 14001
accredited. In addition, the townships of Bhilai, Rourkela and Salem Steel
Plants have also been certified to ISO: 14001.
To improve the
environment inside its plants and their surrounding habitat, SAIL has put in
best efforts such as regular maintenance and consistent operation of air
pollution control systems, effluent treatment plants, recycling of solid wastes
and adoption of cleaner and environment friendly technologies. The concerted
efforts have resulted in resource conservation, compliance to regulatory
requirements, waste reduction, increase in green cover, etc. SAIL has
effectively adopted waste minimisation strategies, including conservation at
source, recovery and recycling, to manage the wastes associated with steel
making.
Recently,
SAIL’s Bhilai Steel Plant installed a 30 million litres per day (MLD) sewage
treatment plant at a cost of approx. Rs.410.000 Millions using inhouse
resources in order to achieve ‘zero effluent discharge’ target. The scheme is
expected to reduce dependence on the Chhattisgarh government’s Water Resources
Department for additional water requirement in future for BSP’s expansion
schemes. The recycling of 30 MLD of treated water for industrial use will
approximately save Rs.39.400 Millions per annum.
Joining hands
with the Ministry of Environment and Forests’ Ozone Cell and UNDP, SAIL took up
an umbrella project for replacement of carbon tetrachloride (CTC) used as a
cleaning solvent by trichloroethylene (TCE) at six of its steel plants. The
objective of this project was to phase out the use of 268 metric tons (approx.)
of CTC being used at the Oxygen Plants and Electrical Repair Shops of these
selected units for cleaning of storage tanks, electric motors, cylinders,
piping, etc.
Extensive
afforestation programmes have been carried out by the company in all its plants
and mines to develop sinks for absorbing air and noise pollution. More than
17.5 million trees have been planted at the SAIL plants and mines since
inception. Keeping pace with 21st century environmental agenda of sustainable
development, SAIL has spent nearly Rs.9.000 Millions on a programme for
ecological restoration of degraded eco-systems over a period of five years up
to 2010. Under the programme, 154.42 acres of limestone mined-out area at
Purnapani, 11.36 acres of iron ore mined-out area at Kalta, and 27.79 acres of
iron ore mined-out area at Barsua have been restored. 222,376 saplings at
Purnapani, 24,000 saplings at Barsua and 12,000 saplings at Kalta have been
planted under the programme. Species planted have shown lush growth. At all
three locations, nurseries have been developed for raising saplings. In
addition, pisciculture is being practiced in five abandoned quarries filled
with water at Purnapani, by releasing 8 lakh fingerlings, mainly the species of
fish such katla, rohu and mrigal. An automatic solar
meteorological station has also been put up at Purnapani as a part of the
project.
SAIL signs MoU
with Mishra Dhatu Nigam to enhance value-added product development for Defence
sector
New Delhi, 16 June 2011
New Delhi: Maharatna Steel Authority of India Limited (SAIL) and Mishra Dhatu
Nigam Limited (MIDHANI), a Government of India enterprise, signed a memorandum
of understanding (MoU) here today for exploring synergetic business
opportunities in production of value-added products, enhanced research and
development activities, exchange of technical know-how and joint
investment between the two companies.
The MoU envisages setting up of a joint task force team (TFT) to
identify special steel products which can be jointly developed by utilising the
R&D facilities of both companies based on assessment of market demand and
subject to techno-economic viability and commercial prudence. The TFT will also
devise a plan for optimum utilisation of facilities at SAIL and MIDHANI for
production of quality and high-grade special steel products. Identification of
areas for joint investment and collaboration for production of special steel is
also included in the scope of MoU.
Speaking on the occasion, SAIL Chairman Mr. C.S. Verma asserted that
through the MoU, the two companies should achieve the goal of developing
products indigenously that would act as 100% substitutes for steel products
currently being imported by the Defence and Power sectors. He also pointed out
that all MoU targets should be fulfilled with the help of a time-bound roadmap
and action plan, which is proposed to be ready within two months. On his part,
MIDHANI CMD Mr. Rao stressed that his company’s long-term relationship with
SAIL will be further strengthened with this MoU that will help to meet the
increasing strategic need of steel products in Defence and Power sector.
SAIL is India’s largest steel producer having a wide range of iron &
steel products and byproducts. MIDHANI’s product range includes super-alloys,
titanium, special steels, forged rounds, wires, strips, rings and titanium
tubes. The Defence and Space sectors are among the major customers of MIDHANI.
Through this MoU, both companies will be able leverage their core competencies
to further their business and strategic interests for mutual benefit and
growth.
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.45.05 |
|
|
1 |
Rs.71.92 |
|
Euro |
1 |
Rs.64.34 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
8 |
|
OPERATING SCALE |
1~10 |
9 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
9 |
|
--PROFITABILIRY |
1~10 |
9 |
|
--LIQUIDITY |
1~10 |
9 |
|
--LEVERAGE |
1~10 |
8 |
|
--RESERVES |
1~10 |
9 |
|
--CREDIT LINES |
1~10 |
8 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
77 |
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.