MIRA
INFORM REPORT
|
Report Date : |
19.10.2011 |
IDENTIFICATION DETAILS
|
Name : |
BHUSHAN STEEL LIMITED [w.e.f. 2007] |
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Formerly Known
As : |
BHUSHAN STEEL AND STRIPS LIMITED |
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Registered
Office : |
F Block, 1st Floor, |
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Country : |
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Financials (as
on) : |
31.03.2011 |
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Date of
Incorporation : |
07.01.1983 |
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Com. Reg. No.: |
55-014942 |
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Capital
Investment / Paid-up Capital : |
Rs.1111.577 Millions |
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CIN No.: [Company Identification
No.] |
L74899DL1983PLC014942 |
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TAN No.: [Tax Deduction &
Collection Account No.] |
DELB07323B |
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PAN No.: [Permanent Account No.] |
AAACB1247M |
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Legal Form : |
A Public Limited Liability Company. The company’s shares are listed on
the Stock Exchanges. |
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Line of Business
: |
Manufacturer and Distributor of Cold Rolled Steel Strips/Sheets/Coils
and Galvanized Cold Rolled Steel Strips/Sheets/Coils. |
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No. of Employees
: |
5326 [Approximately] |
RATING & COMMENTS
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MIRA’s Rating : |
A (65) |
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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 235000000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a well
established and a reputed company having good track. Financial position of the
company appears to be sound. Directors are reported to be experienced and
respectable businessmen. Trade relations are reported as fair. Business is
active. Payments are reported to be regular and as per commitments. The 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 – September 30, 2011
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Country Name |
Previous Rating (30.06.2011) |
Current Rating (30.09.2011) |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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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 |
LOCATIONS
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Registered/
Corporate Office : |
F Block, 1st
Floor, |
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Tel. No.: |
91-11-26462373 (5 Lines) / 42297777 / 42295555 / 39194000 |
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Fax No.: |
91-11-26478750 /
26415845 |
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E-Mail : |
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Website : |
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Factory 1 and Marketing Office - Sahibabad : |
23, Site IV, Sahibabad
Industrial Area, Sahibabad, District |
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Tel. No.: |
91-120-2770601-
04/ 3028000-09 |
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Fax No.: |
91-120-2770509/
4100574 |
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E-Mail : |
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Factory 2 : |
28/4, Site IV,
Sahibabad Industrial Area, Sahibabad, District |
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Factory 3 : |
Village Nifran, Savroli
and Dehvali, Taluka – Khalapura, (Near Khopoli), District Raigad – 410 203, |
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Tel. No.: |
91-2192-274146/302000 |
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Fax No.: |
91-2192-274294/
274354 |
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E-Mail : |
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Factory 4 : |
Narendra Pur, P O
Shibapur, Village Meramandali, District – Dhenkanal - 759 121, |
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Tel. No. : |
91-6764-300000/326443/325133/325857 |
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Fax No.: |
91-11-66173997 |
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Branches : |
Located at: ·
Agartala ·
·
Ahmedabad ·
·
Ahmednagar ·
Bengaluru ·
Bhubaneshwar ·
Bhatinda ·
·
Chennai ·
·
Dehradun ·
·
·
Gurgaon ·
Guwahati ·
Haldwani ·
·
Hosur ·
·
Jaipur ·
·
Kullu ·
Karnal ·
Kolkata ·
·
·
Mandigovindgarh ·
Mumbai ·
·
Nashik ·
·
Pune ·
Parwanoo ·
Rishikesh ·
Silliguri ·
Vadodara ·
|
DIRECTORS
As on 31.03.2010
|
Name : |
Mr. Brij Bhushan
Singal |
|
Designation : |
Chairman |
|
Address: |
W-29, Greater Kailash, Part-II, New Delhi-110046, |
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Date of Birth/
Age: |
20.11.1936 |
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Date of
Appointment: |
15.01.1987 |
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Name : |
Mr. Neeraj Singal |
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Designation : |
Vice Chairman and Managing Director |
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Address: |
W-29, Greater Kailash, Part-II, New Delhi-110046, |
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Date of Birth/
Age: |
23.04.1968 |
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Qualification: |
Graduate |
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Date of
Appointment: |
01.04.1992 |
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Last Employment: |
Executive Director with Bhushan Metallics Limited |
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Name : |
Mr. Mohan Lal |
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Designation : |
Director |
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Address: |
19-A, Udham Singh Nagar, |
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Name : |
Mr. B B Tondon |
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Designation : |
Director |
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Name : |
Shri V.K.
Mehrotra |
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Designation : |
Director |
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Name : |
Mr. M. V.
Suryanarayana |
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Designation : |
Nominee (LIC) |
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Address: |
12-2-417/A/11, Gudimalkapur,
Jaya Nagar, Hydedrabad-500028, Andhra Pradesh, India |
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Date of Birth/
Age: |
05.04.1946 |
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Date of
Appointment: |
25.09.2010 |
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|
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Name : |
Mrs. Sunita
Sharma |
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Designation : |
Nominee Director
of LIC |
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Name : |
Mr. Nittin Johari |
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Designation : |
Whole-time
Director [Finance] |
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Qualification: |
M.Com, FCA |
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Date of
Appointment: |
06.01.1995 |
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Last
Employment: |
Financial
Controller with Wimco Limited |
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|
|
|
Name : |
Mr. Rahul Sen Gupta |
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Designation : |
Whole-time
Director [Technical] |
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|
Name : |
Mr. P.K. Aggarwal |
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Designation : |
Whole time Director [Commercial] |
KEY EXECUTIVES
|
Name : |
Mr. O. P. Davra |
|
Designation : |
Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 30.09.2011
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding of Promoter and Promoter Group |
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|
132359960 |
62.33 |
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|
14495535 |
6.83 |
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|
146855495 |
69.15 |
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|
- |
- |
|
Total shareholding of Promoter and Promoter Group (A) |
146855495 |
69.15 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
44000 |
0.02 |
|
|
7400 |
- |
|
|
1643568 |
0.77 |
|
|
5427566 |
2.56 |
|
|
7122534 |
3.35 |
|
|
|
|
|
|
50775607 |
23.91 |
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|
4803044 |
2.26 |
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|
2464325 |
1.16 |
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|
163355 |
0.08 |
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|
173950 |
0.08 |
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|
58380281 |
27.49 |
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Total Public shareholding (B) |
65502815 |
30.85 |
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Total (A)+(B) |
212358310 |
100.00 |
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(C) Shares held by Custodians and against which Depository Receipts
have been issued |
- |
- |
|
Total (A)+(B)+(C) |
212358310 |
100.00 |
(1) Indian
Individuals / Hindu Undivided Family
Individual shareholders holding nominal
share capital up to Rs. 0.100 MillionBUSINESS DETAILS
|
Line of Business : |
Manufacturer and Distributor of Cold Rolled Steel Strips/Sheets/Coils
and Galvanized Cold Rolled Steel Strips/Sheets/Coils. |
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Products : |
Item Code No. (ITC Code) 721041 Product Description : Corrugated coated with Zinc Cold Rolled Products
of Iron or Non Alloy Steel of a width of
600 MM or more Item Code No. (ITC Code) 721049 Product Description : Flat Coated with Zinc Cold Products of Iron or
Non Alloy Steel of a width of 600 MM or more Item Code No. (ITC Code) 720918 Product Description : Flat Cold Rolled Products of Iron or Non Alloy
Steel of a width of 600 MM or more of a thickness
of less than 0.5 MM ·
Cold
Rolled ·
Galvanised ·
Bhushan
Galume ·
Colour
Coated Coil ·
Colour
Coated Tiles ·
Drawn
Tubes of OEM Grade ·
Hardened
and Tempered Strip ·
High
Tensile Steel Stripping ·
Wire
Rods and Alloy Billets ·
Sponge
Iron |
PRODUCTION STATUS 31.03.2011
|
Particulars |
Unit |
|
Installed
Capacity |
Actual
Production |
|
Hot Rolled Steel Strips/Sheets/Coils |
MT |
|
1900000 |
805675 |
|
Cold Rolled Steel Strips/Sheets/Coils |
MT |
|
1250000 |
1191715 |
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Cold Rolled Galvanised Steel
Strips/Sheets/Coils |
MT |
|
540000 |
545196 |
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Colour Coated Galvanised Steel Strips/Sheets/Coils |
MT |
|
160000 |
118691 |
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Precision Tubes |
MT |
|
140000 |
126642 |
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Hardened & Tempered Cold Rolled Steel Strips |
MT |
|
11000 |
12412 |
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High Tensile Steel Strapings |
MT |
|
20000 |
9865 |
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Sponge Iron |
MT |
|
900000 |
406787 |
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Billets |
MT |
|
340000 |
242035 |
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Wire Rods |
MT |
|
20000 |
8623 |
|
Formed Sections |
|
|
3000 |
780 |
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Under the liberalized industrial policy of Government of India, the
company products do not require any industrial license |
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GENERAL INFORMATION
|
Customers [As on 31.03.2010]: |
·
The Tata
Engineering and Locomotive Company Limited ·
Bajaj
Tempo Limited ·
LML
Limited ·
Whirlpool
of India Limited ·
Mahindra
and Mahindra Limited ·
Hyundai
Motors India Limited ·
Hindustan
Motors Limited ·
JBM
Tools ·
Escorts
Limited ·
Scooter
India Limited ·
LG Electronics
India Limited ·
BPL
Limited ·
Voltas
Limited ·
Fedder
Lloyds ·
Godrej
GE Appliances Limited ·
Ashok
Leyland Limited ·
Rail
Coach Factory |
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Technical Support: |
·
ABB ·
Air Liquide Engineering SA, ·
BHEL ·
·
·
Danieli Corus, The ·
·
·
·
Intech Machinery Co. Limited, ·
KCI Special Cranes, ·
KIC Limited, ·
·
L and T ·
LOI Thermoprocess ·
Man B and W, ·
Mecon ·
·
·
Paul Wurth, ·
Qualical AG, ·
RITES ·
·
Siemens AG, ·
SMS ·
·
Techint S.P.A., ·
·
WAPCOS |
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No. of Employees : |
5326 [Approximately] |
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Bankers : |
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Facilities : |
Foot Note: (1) 8.15% Redeemable Non-Convertible Debentures are redeemable at par
in three equal annual installments commencing from the 4th year from the date
of disbursement i.e.24th April, 2006. (2) 10.20% Redeemable Non-Convertible Debentures are redeemable at par
in one bullet payment at the end of 7th year from the date of allotment i.e.
26th March, 2007. (3) 10.50% Redeemable Non-Convertible Debentures are redeemable at par
in three equal annual installments commencing from the end of 6th
year from the date of allotment i.e. 13.08.2010 (4) 12% Redeemable Non-Convertible Debentures ( subordinate debt) are
redeemable at par in one bullet payment at the end of 10th year from the date
of allotment i.e. 31st March, 2008. (5) 10.90% Redeemable Non-Convertible Debentures are redeemable at par
in four equal annual installments commencing from the end of 5th
year from the deemed date of allotment i.e. 26.08.2010 (6) Secured by first charge on pari passu basis on the fixed assets of
the Company. (7) Secured by Subsequent and subservient charge by way of
hypothecation on the present and future assets of the Company so as to
maintain minimum asset coverage of 1.25 times, throughout the currency of the
Debentures. Debentures are further secured by pledge of Equity Shares of
Bhushan Steel Limited, having market value not less than 1.5 times of loan,
held by promoters/ promoter entities, and Personal Guarantee of two promoter
Directors. (8) Secured by hypothecation of stocks and book debts, second charge
on Company’s land, building and other immovable properties ranking pari passu
inter-se, personal guarantee of two promoter Directors. (9) Secured by mortgage of land and building and charge on all of the
Company’s immovable and movable properties (except book debts) both present
and future including movable machinery, spares, tools and accessories,
ranking pari passu inter-se, with the trustee of Debenture holders subject to
prior charges created in favour of banks on stocks etc. for securing
borrowing for working capital requirement, except Rs. 18036.800 Millions
(Previous Year 11827.700 millions) secured by subsequent and subservient
charge on movable assets. The above includes Rs 10559.900 Millions ( Previous
Year Rs. 10495.500 Millions) on which security by way of mortgage of land and
building and charges on all the Company's immovable properties is yet to be
created. Out of these loans Rs. 84642.200 Millions (Previous Year Rs
57209.800 Millions) is guaranteed by personal guarantee of two promoter Directors
and Rs.17111.900 Millions (Previous Year Rs 8208.900 Millions) is guaranteed
by personal guarantee of one promoter Director. Foreign Currency Loans
include ECA Loans of Rs. 14636.600 Millions (Previous Year 12117.100
Millions) secured by specific charge on the assets financed and personal
guarantee of two promoter Directors. (10) Secured by hypothecation of specific assets.
The amount of loan includes interest due and accrued thereon. *Including Commercial Paper Rs.5850.000 Millions (Previous Year
1000.000 Millions ), maximum balance of Commercial Paper outstanding during
the year Rs.7000.000 Millions (Previous Year Rs. 2000.000 Millions) , and are
personally guaranteed by two promoter Directors. **Rs. 9882.000 Millions (Previous Year Rs. 10173.000 Millions)
personally guaranteed by two promoter Directors. |
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Banking
Relations : |
-- |
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Auditors : |
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Name : |
Mehra Goel and Company Chartered
Accountants |
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Memberships : |
Confederation of
Indian Industry |
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Joint Venture: |
Andal East Coal Company Private Limited |
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Associates : |
·
Angul
Sukinda Railway Limited ·
Bhusahan
Energy Limited |
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Subsidiaries : |
· Bhushan Steel Global FZE ·
Bhushan Steel ( ·
Bowen Energy Limited, · Kondor Holdings Pty Limited · Bowen Coal Pty. Limited · Bowen Consolidated Pty Limited · Capricorn Metals Limited ·
Capricorn Resources ( ·
Golden Country Resources ( ·
Bowen Energy ( · Bhushan Steel (Orissa) Limited · Bhushan Steel (South) Limited · Bhushan Steel Bengal Limited |
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Other Related
Parties : |
· Bhushan Energy Limited · Bhushan Aviation Limited · Arshiya International Limited |
CAPITAL STRUCTURE
As on 31.03.2011
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
400,000,000 |
Equity Shares |
Rs.2/- each |
Rs.800.000 Millions |
|
7,000,000 |
Preference Shares |
Rs.100/- each |
Rs.700.000 Millions |
|
|
Total |
|
Rs.1500.000
Millions |
Issued Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
216,448,000 |
Equity Shares |
Rs. 2/- each |
Rs.432.896 Millions |
|
5,168,600 |
10% Redeemable Cumulative Preference Shares |
Rs. 100/- each |
Rs.516.860 Millions |
|
900,000 |
4% Non convertible Cumulative Redeemable Preference Shares |
Rs. 100/- each |
Rs. 90.000
Millions |
|
800,000 |
25% Non convertible Cumulative Redeemable Preference Shares |
Rs. 100/- each |
Rs. 80.000
Millions |
|
|
Total |
|
Rs. 1119.756 Millions |
Subscribed and
Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
212,358,310 |
Equity Shares |
Rs. 2/- each |
Rs.424.717 Millions |
|
5,168,600 |
10% Redeemable Cumulative Preference Shares |
Rs. 100/- each |
Rs.516.860 Millions |
|
900,000 |
4% Non convertible Cumulative Redeemable Preference Shares |
Rs. 100/- each |
Rs. 90.000 Millions |
|
800,000 |
25% Non convertible Cumulative Redeemable Preference Shares |
Rs. 100/- each |
Rs. 80.000
Millions |
|
|
Total |
|
Rs. 1115.577 Millions |
Note:
Of the above, 104774600 Equity Shares were allotted on
conversion of Debentures.
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF
FUNDS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
SHAREHOLDERS FUNDS |
|
|
|
|
1] Share Capital |
1111.577 |
791.547 |
424.717 |
|
2] Preference Share Application Money |
0.000 |
0.000 |
4004.400 |
|
3] Reserves & Surplus |
57852.511 |
39125.159 |
19917.273 |
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
NETWORTH |
58964.088 |
39916.706 |
24346.390 |
|
LOAN FUNDS |
|
|
|
|
1] Secured Loans |
123918.517 |
83269.600 |
51363.222 |
|
2] Unsecured Loans |
42007.833 |
30771.453 |
29299.257 |
|
TOTAL BORROWING |
165926.350 |
114041.053 |
80662.479 |
|
|
|
|
|
|
DEFERRED TAX
LIABILITIES |
6983.183 |
3295.382 |
2463.199 |
|
|
|
|
|
|
TOTAL |
231873.621 |
157253.141 |
107472.068 |
|
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|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
125662.947 |
20793.240 |
18859.706 |
|
Capital work-in-progress |
73932.148 |
111093.250 |
74001.328 |
|
|
|
|
|
|
INVESTMENTS |
2777.303 |
3700.446 |
1077.271 |
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
61.345 |
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
Inventories |
31684.055 |
19626.717 |
12303.589 |
|
Sundry Debtors |
4835.331 |
7339.231 |
6198.223 |
|
Cash & Bank
Balances |
350.790 |
1201.978 |
1243.682 |
|
Other Current Assets |
0.000 |
0.000 |
0.000 |
|
Loans & Advances |
13306.777 |
9534.157 |
7690.996 |
|
Total
Current Assets |
50176.953 |
37702.083 |
27436.490 |
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
Sundry Creditors |
11253.549 |
9785.195 |
8633.902 |
|
Other Current
Liabilities |
8937.976 |
5886.141 |
5053.100 |
|
Provisions |
484.205 |
364.542 |
277.070 |
|
Total
Current Liabilities |
20675.730 |
16035.878 |
13964.072 |
|
Net Current Assets |
29501.223 |
21666.205 |
13472.418 |
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
TOTAL |
231873.621 |
157253.141 |
107472.068 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
69676.567 |
56112.687 |
49432.444 |
|
|
|
Other Income |
695.128 |
1177.766 |
180.557 |
|
|
|
Export Incentives |
328.058 |
290.816 |
142.354 |
|
|
|
TOTAL |
70699.753 |
57581.269 |
49755.355 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Manufacturing and other Expenses |
49700.687 |
41876.143 |
39282.219 |
|
|
|
TOTAL |
49700.687 |
41876.143 |
39282.219 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION |
20999.066 |
15705.126 |
10473.136 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES |
4464.108 |
2100.121 |
2521.214 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION |
16534.958 |
13605.005 |
7951.922 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION |
2778.453 |
2091.356 |
2344.067 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX |
13756.505 |
11513.649 |
5607.855 |
|
|
|
|
|
|
|
|
|
Less |
TAX |
3705.646 |
3055.683 |
1394.810 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
|
10050.859 |
8457.966 |
4213.045 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
720.833 |
731.824 |
1840.503 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Proposed Dividend on Equity Shares |
106.179 |
106.179 |
106.179 |
|
|
|
Proposed Dividend on Preference Shares |
37.014 |
2.331 |
0.000 |
|
|
|
Provision for Dividend Tax |
23.230 |
18.022 |
18.045 |
|
|
|
Transferred to Debenture Redemption Reserve |
547.500 |
197.500 |
197.500 |
|
|
|
Release from Debenture Redemption Reserve |
[100.000] |
0.000 |
0.000 |
|
|
|
Transfer to General Reserve |
10120.000 |
8144.925 |
5000.000 |
|
|
BALANCE CARRIED
TO THE B/S |
37.769 |
720.833 |
731.824 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
FOB Value of Export |
12059.629 |
12172.763 |
14628.630 |
|
|
|
Interest Received |
2.260 |
0.000 |
2.913 |
|
|
|
Compensation Received |
0.000 |
36.920 |
0.000 |
|
|
TOTAL EARNINGS |
12061.889 |
12209.683 |
14631.543 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
27393.773 |
20160.069 |
13230.871 |
|
|
|
Stores & Spares |
1091.688 |
234.727 |
88.869 |
|
|
|
Capital Goods |
7861.598 |
5838.349 |
12809.188 |
|
|
TOTAL IMPORTS |
36347.059 |
26233.145 |
26128.928 |
|
|
|
|
|
|
|
|
|
|
Basic and
Diluted Earnings Per Share (Rs.) |
47.13 |
39.82 |
99.20 |
|
QUARTERLY RESULTS
|
PARTICULARS |
|
|
30.06.2011 1st
Quarter |
|
Net Sales |
|
|
22317.800 |
|
Total Expenditure |
|
|
15707.400 |
|
PBIDT (Excl OI) |
|
|
6610.400 |
|
Other Income |
|
|
75.300 |
|
Operating Profit |
|
|
6685.700 |
|
Interest |
|
|
2157.000 |
|
Exceptional Items |
|
|
0.000 |
|
PBDT |
|
|
4528.700 |
|
Depreciation |
|
|
1508.900 |
|
Profit Before Tax |
|
|
3019.800 |
|
Tax |
|
|
920.200 |
|
Provisions and contingencies |
|
|
0.000 |
|
Profit After Tax |
|
|
2099.600 |
|
Extraordinary Items |
|
|
0.000 |
|
Prior Period Expenses |
|
|
0.000 |
|
Other Adjustments |
|
|
0.000 |
|
Net Profit |
|
|
2099.600 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
PAT / Total Income |
(%) |
14.22
|
14.69
|
8.47
|
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
19.74
|
20.52
|
11.34
|
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
7.82
|
19.68
|
12.11
|
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.23
|
0.29
|
0.23
|
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
3.16
|
3.26
|
3.89
|
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
2.43
|
2.35
|
1.96
|
LOCAL AGENCY FURTHER INFORMATION
HISTORY
The company is an ISO 9002, QS 9000 certified and the
flagship company of Bhushan group, is
The Company currently has a capacity to produce 0.6 Million MT/Annum of Cold
Rolled Steel at Sahibabad Works and 0.4 Million MT/Annum of Cold Rolled Steel
at Khopoli Works and out of that 0.25 Million MT/Annum of Galvanized
Steel.
The plants of the company are at Sahibabad, Uttar Pradesh and Khopali,
The company's has strong presence in
Subject was incorporated on 7th January 1983, under the name of Jawahar Metal
Industries Private Limited for the manufacture of cold rolled steel strips and
steel ingots at Sahibabad Industrial Area, District Ghaziabad. The company was
taken over by Brij Bhushan Singhal and his sons Sanjay Singhal and Neeraj
Singhal by acquiring the entire share capital of the company. The company was
renamed as Bhushan Steel and Strips (BSS) after diversifying into wide-width
cold-rolled (CR) steel strips in 1992 and the cold rolling plant was also
completed in the same year.
Subject came out with its first public issue in 1993 to finance its forward
integration project for the manufacture of 100000 tpa of continuous
annealed/galvanised steel strips. It tapped the capital market for the second
time in Apr.'95, to part-finance the setting up of facilities to manufacture an
additional 150000 tpa of CRCA and 40,000 tpa of GP/GC sheets.
The company commissioned galvanising plant in January 1994 with a capacity to
manufacture 120000 tonnes per annum of wide width cold rolled steel strips and
100000 tonnes per annum of galvanised sheets. In the same year 1994, the
company also proposed to set up an integrated steel plant for manufacture of
1.2 Million Tonnes per year of H R Coils at Daitari in the State of
In 1995, the company came out with a rights issue of 8250000 Unsecured Zero
Interest Convertible Debentures and also made a public issue of 6894800 - 14%
Unsecured Fully Convertible Debentures.
In 1998, the company proposed to setup two steel cold rolling and galvanising
units - one near Haldia and the other at Patalganga, near Mumbai. The company
also commissioned a cold rolled steel plant at
During 1999, the company also set up a dedicated service centre for large OEM
customers at Sahibabad.
The company approved amalgamation of Bhushan Limited with the company in 2000.
But later the proposal for amalgamation was withdrawn in 2003-2004.
During 2000-01, the company implemented the expansion project of 250000 tpa of
Cold Rolling Cum Galvanising and Tube Complex in Khopoli,
During 2004-05, the company planned to commence additional manufacturing
facilities at its plant situated at Khopoli (Maharashtra) in respect of the
production of prepainted galvanized material(PPGI).The capacity of the line
would be approximately 120000 MT per annum making it the largest line in
During 2005-2006, the company successfully commissioned the largest Color
Coated line at its Khapoli plant in
The company’s new HR plant is at fast phase of progress and the company expects
the plant to commission as per schedule. The total project comprises
installation of Hot Rolled Coil and Billets along with power plant. In the
first quarter of 2006-07 the company shall start 2 Klins and 33 MW power plants
while in the third quarter the company shall start 2 klins and 77 MW power
plants which will complete phase I of the project. The company has already
spent Rs.13210 Millions on the phase I of the project and has place substantial
orders for the equipments mainly with SMS Demag, Siemens, Danieli Corus,
Techint, KCI Cranes, Paul Wurth, etc to be imported for phase II.
The Company has raised Rs 105 million through issue of Equity shares on
preferential basis for Company's integrated Steel and Power Plant being set up
in the State of
HIGHLIGHTS:
During the year, the Company has partially installed the
Phase II of the integrated steel plant at Orissa with the production facility
of Hot Roll Coil Mill (1.90 Mtpa)
The Gross sales of the Company has increased to Rs.75760.000
millions, registering a growth of 26% over previous year's level of
Rs.60030.000 millions.
EXPANSION PROJECT:
The company started its backward integration with capacity
of 1.9 MTPA of hot rolled steel at its integrated steel plant at Orissa coupled
with another capacity expansion (a Brownfield one) which shall enhance the HR
capacity to 4.40 MTPA by Oct. 2012. With the start up of HR plant of 1.9 MTPA
at Orissa the company's dependence on others to supply us primary steel ended
up resulting in full control of margins.
The company plans to utilize all its HR capacity to
manufacture the downstream products as it has leadership position in value
added segment for automobile and white goods sector.
At present the company has total downstream capacity of 1.25
MTPA at its Sahibabad and Khopoli plants out of which only 0.60 MTPA is
available to auto and white goods sector and the balance capacity is used for
Galvanised and other value added products. The company has almost 100% order
book for auto and white goods sector and is notable to full fill the additional
requirements of the fast growing auto market.
Further the company is also coming up with 0.50 MTPA ERW API
pipe plant at Khopoli and0.45 MTPA Called Rolled Complex at Orissa which shall
be ready by FY 13. Thus the company shall utilize its HR capacity of around 2.3
MTPA and after the expansion of HR capacity in October 12 the company shall
have surplus HR available of around 2.1 MTPA.
The company has option to sell the surplus HR in the market
or to further downstream/value addition the same to capture the full value
chain and maximize the margins.
In order to maintain its leadership position in this segment
and to maximize the margins the company proposes to set up the downstream
capacity of 1.8 MTPA, where the company shall setup PLTCM of 1.8 MTPA and CAL
of 1 MTPA with the capex of around Rs.5000crores to fully utilize its
additional HR capacity. The PLTCM and CAL line shall have the world class
facility with latest technology and lower conversion cost as compared to the existing
facilities.
With the PLTCM and CAL line the company shall capture the
fast growing domestic automotive and consumer goods segments and shall also
help the company to make its presence in the overseas auto market also.
In addition to the above, the company shall also be
completing the 2nd Coke oven plant(1.3 MTPA), Coal Washery (2.5 MTPA) and 2 DRI
Kilns (aggregate capacity of 0.34 MTPA) and197MW Power Plant at the existing
site of Integrated steel plant at Orissa.
With this the company will be able to achieve the
improvements in its margins.
FINANCE:
The company has tied up ECA for EURO 180 Million form DZ
Bank AG for Brownfield project phase III.
During the year, the company has tied up Rupee Term Loan of
Rs.6000.000 millions from Central Bank of India for the Cold Rolling Mill
project, ECB for USD 125 million from ICICI Bank Limited and Rupee Term Loan
for Rs.10320.000 millions from Axis Bank Syndication for Coke Oven, Coal
Washery and 2 DRI Kilns project and Rupee Term loan of Rs.7250.000 millions
from Canara Bank Syndication for its 197 MW Power Project at Orissa.
The Working Capital facilities for Sahibabad, Khopoli and
Orissa Plants have been appraised by PNB, the lead Bank, for Rs.56560.000
millions (Fund Base limit of Rs.22310.000 millions excluding export credit and
Non Fund Based limit of Rs.34250.000 millions) for the Financial year2010-11
CREDIT RATING:
The Long Term rating of the company is Care A+ by Credit
Analysis and Research Limited as per the provisions of BASEL II guidelines of
RBI.
The Credit Analysis and Research Limited (CARE) has rated
the short term rating at the highest rating of PR1+ (PR One Plus) for short
term credit facilities of the company.
EXPORTS:
During the year, the company has achieved the Export
Turnover of Rs.12060.000 millions. The Export Turnover of most of the Exporters
in the country has a negative trend due to the recession in international
market during the last year.
With a firm commitment and through sustained efforts, the
company continues to maintain good rapport with Global Customers. Their quality
products and timely delivery have found wide acceptance in the highly
competitive international market.
Their products are being exported across the globe.
CHANGE IN SHARE CAPITAL:
i) Increase in Authorised Share Capital
The Authorised Share Capital of the Company has been
increased from Rs. 1500.000 millions to Rs.2250.000 millions by creation of
75,00,000 Preference Shares of Rs.100 each.
ii) Issue and allotment of Preference Shares :
The Company has issued and allotted 32,00,300 Preference
Shares of Rs.100 each.
SUBSIDIARIES:
The consolidated financial statements presented by the
Company include financial information of its subsidiaries prepared in
compliance with applicable Accounting Standards. As per the general exemption
given by Ministry of Corporate Affairs vide General circular no. 2/ 2011, the
Company is exempted under Section 212(8) of the Companies Act, 1956 from
attaching to its Balance Sheet, the individual annual Reports of its subsidiary
Companies.
As per the terms of the General circular no. 2/ 2011, a
statement containing brief financial details of the Company's Subsidiaries for
the year ended March 31, 2011 is included in the Annual Report. The annual
accounts of these subsidiaries and the related detailed information will be
made available to any investor of the company / its subsidiaries of seeking
such information at any point and are also available for inspection by any
investors of the Company/its subsidiaries at the Corporate Office of the
Company and that of the head offices of the respective subsidiary Companies.
Detail of subsidiaries of the Company are covered in the
Annual Report.
GROUP:
Pursuant to intimation from the promoters, the name of the
Promoters and entities comprising the 'group' as defined under the Monopolies
and Restrictive Trade Practices(MRTP) Act, 1969 are disclosed herein below.
Persons constituting group coming within the definition of
'group' as defined in the Monopolies and Restrictive Trade Practices (MRTP)
Act, 1969 for the purpose of Regulation3(l)(e) (i) of the Securities and
Exchange Board of India (Substantial Acquisition of Shares and Takeovers)
Regulations, 1997 include the following :
- Bhushan
Energy Limited
- Bhushan
Aviation Limited
- Bhushan
Buildwell Private Limited
- Bhushan
Infrastructure Private Limited
- Bhushan
Energy Trading Private Limited
- Bhushan
Placement Services Private Limited
- Bhushan
General Traders Private Limited
- Bhushan Consumer
Electronics Private Limited
- Ajay and
Archana Mittal Family Private Trust
MANAGEMENT
DISCUSSION AND ANALYSIS
INDUSTRY STRUCTURE AND DEVELOPMENTS
The Steel industry is divided into primary and secondary sectors.
The primary sector products are Billets, Plates, Rounds and Hot Rolled
Coils/Plates (HRC/HRP). These form raw material for the secondary sector, which
produces value added items such as Angles, Channels, Wire Rod, Cold Rolled
Coils/Sheets (CRC/CRS) and Galvanised Coils/Sheet. CR Sheet is a thinner sheet
used for consumer durables like refrigerators, washing machines, automobiles,
bicycles, etc. CR Sheets are used by the automobile and domestic appliances
industry whereas CR strips are used in manufacturing of bicycles, drums,
barrel, fabrication, furniture etc. CR Coils are mainly used for manufacturing
GP/GC sheets. Bhushan Steel Limited which so far falls under secondary sector,
also entered in primary sector with the setting up plant at Orissa.
Flat Products
Derived from Slabs, this category includes plates and Hot
Rolled (HR) steel such as Coils/ Sheets. While plates are used for applications
such as shipbuilding etc., HR Steel is the most widely used variety for steel,
and other downstream flat products such as Cold Rolled (CR) Steel and
Galvanised Steel are made from it.
Long products
These products derive their name from their shape. They are
made by using billets and blooms and include rods, bars, pipes, ropes and
wires, which are used largely by the housing/ construction sector.
Global Steel Industry
Global crude steel production reached a new height during
2010 at 1414 million metric tonnes, up by 15% over 2009. While china maintained
the lead position in terms of volume of steel produced, with a growth of 9.3%,
most of the negative growths seen in the steel producing nations hit by the
economic downturn in 2009 reversed during 2010 and they recorded positive
double digit growths during the year.
There was a recovery in the global economy in 2010
characterized by:
- Moderate growth in advanced economies, spurred by stimulus
measures, private consumption which fell sharply during the crisis picked up.
- Growth in emerging and developing economies remained
robust buoyed by resurgent capital inflows due to abundant global liquidity and
strong domestic demand.
- Global liquidity improved, credit spreads narrowed, equity
and debt capital markets opening up enabling several corporations to raise
capital to meet funding requirements.
The global economy is on the recovery path while advanced
economies are expected to pick up growth momentum. The emerging economies will
consolidate with moderate growth as the focus is shifted to contain inflation
rather than pursuing growth.
The global steel industry, like many other sectors, sailed
into this decade in a largely radar less state, with different economies having
been affected differently by the global financial crisis. Notwithstanding the
stimulus programmes announced by various governments, the post-crisis economic
situations in many developed countries have remained grim with uncertainties
regarding their economic recovery and its sustenance. Given the inextricable
linkage of steel with economic growth, this also meant an uncertainty in the
growth of steel demand across the world and the performance of the steel
industries. While
From the late 90's, China, through its market and social
reform programmes, emerged on the world steel map and has since graduated to
the largest steel player in the world.
However, economic growth slowed to 10.3% in 1QFY11 and
further to 9.6% in 2QFY11 from11.9% in Q4FY10, as
According to CISA's statistics,
INDIAN STEEL SCENARIO
Over the past decade,
The drive to industrialize has made
Over the period 2003-09, the per capita consumption of steel
in
SECTORAL DRIVERS
The growth in steel demand in India is being driven by the
country's economic growth, which in turn is largely being influenced by the
Government's spending on infrastructure development, growth in the real estate
sector and continued firmness in the demand from other steel-consuming sectors
like capital good, automobile and consumer durables. The country's Index of Industrial
Production (IIP) has grown at an annualized rate of 8.8% as seen in figure 10,
and steel production has also been increasing simultaneously.
The country's overall steel consumption is distributed
across various sectors. However, while flat steel products are more equitably
distributed among automotive, infrastructure, steel pipes and construction, the
use of long steel products is concentrated mainly in real estate and
infrastructure sectors.
Challenges for the Indian Steel Industry
Iron ore: Although,
Coking coal: A primary ingredient for steel
making, is in short supply. It accounts for only 12% of
Water: 1
tonne of steel production requires around 2.6 cubic metres of water, depending
upon recycling of efficiency levels. Accordingly, water as a resource, is
immensely significant for producing steel.
Logistics: Every 1 tonne of steel generates a
traffic of around 5 tonnes including the inbound and outbound material flow.
Accordingly, logistic infrastructure is of immense importance for the Indian
steel sector for a number of reasons 1) raw material needs to be met largely
through imports, 2) steel consumption is widely dispersed across the country
involving transportation of finished steel to consumption locations and 3) high
logistics costs make transportation a huge challenge. The Indian railway
network is inadequate; rakes are in short supply and port infrastructure is
unable to cope up with increased volumes. Increasing fuel prices makes road
transport costs prohibitive.
Expansion clearances: Land allocation, Mining leases,
Environment and Forest clearances and Infrastructure connectivity for
Product development:
Based on the recommendations of the Working Group on Steel
Industry, a new scheme i.e., Scheme for Promotion of R and D in Iron and Steel
Sector has begun with an outlay of Rs.1180.000 millions for the 11th Five Year
plan. Under this scheme, R and D is being pursued in three major areas namely:
* Development of innovative/path breaking technologies.
* Beneficiation and utilising of Indian iron ore fines and
non-coking coal.
* Improvement of steel quality produced through induction
furnace route.
Environment: Environment management and
energy efficiency constitute an important benchmark for assessing any sector or
company performance, both globally and in
Bhushan Steel Limited has taken steps in each of these areas
to remain competitive.
COMPANY'S PROSPECTS
The company is on steel growth trajectory, led by strong
volume growth and backward integration:
The company commenced the implementation of its integrated
steel plant at Meramandali, Orissa in January 2005 as a backward integration to
produce HR Coils in phased manner. The Phase I of the Green field integrated
steel plant started commercial production in 2007with production facilities of
Billets (300000 tpa), and power plant (110 MW). The phase II of the project has
been completely installed with the production capacity of Hot Roll Coil Mill
(1.90 Mtpa). With the start up of HR plant of 1.9 MTPA at Orissa the company's
dependence on others to supply us primary steel ended up resulting in full
control of margins.
With the Orissa expansion project, the company is
transforming from steel converter to a primary steel producer, with capacity of
4.7 MTPA by FY 2013 and with the commissioning of the phase I and phase II
(Blast Furnace and HRC mill) at Orissa in March 2010, FY 2011was the first year
of primary steel making. BSL also enjoys the distinction of being the only
company in
Most Modern integrated steel and Power Complex:
• Deploys best available technologies, thereby enabling
Bhushan Steel to produce:
Auto Grade HR Coil for the first time in
Technical assistance from Sumitomo Metals,
Allocation of captive mines for iron ore, thermal coal and
coking coal.
The Company's Brownfield project Phase III at Orissa is
scheduled for completion in October 2012 which is envisaging setting up of 2.5
MTPA HRC Capacity in addition to Phase II capacity to ensure optimum
utilization of infrastructure and resources at the existing plant to utilize
the full capacity of Hot Rolling (HR) mill being implemented. The total HRC of
the company shall be 4.4 MTPA once the project will be completed.
The Company has been allocated Iron Ore Mines and Coal Mines
by the Orissa Government. The work on these has been started and the mines are
likely to be operational within 2-3years. The Company has also acquired sizeable
stake in Bowen Energy Ltd,
PERFORMANCE
The company is engaged in Steel business, which is context
of Accounting Standard(AS)-17 issued by the institute of Chartered Accountants
of India is considered the only business segment. The overall operational
performance of the company has been much satisfactory during the year. The
plants have operated optimally during the year and there were no major break
downs or shutdowns.
UNAUDITED
FINANCIAL RESULTS FOR THE QUARTER ENDED 30.06.2011
(Rs.
In Millions)
|
Particulars |
Quarter
Ended 30.06.2011 |
|
Unaudited |
|
|
Domestic Sales |
21385.400 |
|
Export Sales |
2868.400 |
|
Total Gross Sales |
24253.800 |
|
Less : Excise Duty |
1936.000 |
|
a) Net Sales/Income from Operations |
22317.800 |
|
Total Expenditure |
|
|
a) Decrease/ (Increase) in stock in trade and work in progress |
[2238.600] |
|
b) Consumption of raw materials |
14295.700 |
|
c) Purchase of Traded Goods |
- |
|
d) Employees cost |
342.600 |
|
e) Other expenditure |
3307.700 |
|
g) Depreciation |
1508.900 |
|
Total |
17216.300 |
|
Profit from Operations before Other Income, Interest and Exceptional
items (1-2) |
5101.500 |
|
Other Income |
75.300 |
|
Profit before Interest and Exceptional items (3+4) |
5176.800 |
|
a) Interest and Financial Charges |
2157.000 |
|
Profit Before
Tax |
3019.800 |
|
Provision for Tax Expenses |
920.200 |
|
Net Profit After
Tax |
2099.600 |
|
Extraordinary items (net of Tax) |
- |
|
Net Profit |
2099.600 |
|
Paid-Up Equity Share Capital |
424.700 |
|
(Face Value of Rs.10/- each) |
|
|
Reserves excluding Revaluation Reserve as per Balance Sheet of
previous Accounting Year |
- |
|
Earning Per Share (EPS) (not annualised) |
|
|
i) Basic (Rs) |
9.78 |
|
ii) Diluted (Rs) |
9.78 |
|
Aggregate of Non-Promoter Shareholding |
|
|
- Number of shares * |
65502815 |
|
- Percentage of
shareholding * |
30.85% |
|
Promoters and Promoter Group shareholding |
|
|
a) Pledged/ Encumbered |
|
|
- Number of shares |
36706970 |
|
- Percentage of share (as
% of the total shareholding of Promoter group) |
25.00% |
|
- Percentage of share (as
% of the total share capital of the Company) |
17.29% |
|
b) Non-Encumbered |
|
|
- Number of shares |
110148525 |
|
- Percentage of share (as %
of the total shareholding of Promoter group) |
75.00% |
|
- Percentage of share (as
% of the total share capital of the Company) |
51.86% |
NOTES:
1. The above
results have been reviewed by Audit Committee and taken on record by the Board
of Directors at
2. The
limited review for the quarter ended on 30.06.2011 as required under clause 41
of the listing agreement with the stock exchanges has been carried out by the
Statutory Auditor.
3. The
company has split its Equity Shares of Rs. 10/- each into 5 Equity Shares of
face value Rs. 2/- each in September, 2010. Accordingly Earning Per Share has been
calculated/ recalculated based on the increased number of Equity Shares as
required by Accounting Standard (AS) – 20.
4. The
company is engaged in the steel business, which in the context of Accounting
Standard – 17 notified in the companies [accounting standards] rules, 2006, is
considered the only business segments.
5. During
current quarter the company has disposed off its 100% investment in its wholly
owned subsidiary Bhushan Steel Global FZE,
6. During
the current quarter the company has started its coke oven unit at Orissa Plant.
7. No of
Investor complaints for the quarter ended on 30.06.2011
a) Pending
at the beginning-Nil b) Received-04 c) Resolved-04 d) Remaining Unsolved – Nil
Bankers Charges
Report as per Registry
|
Corporate
identity number of the company |
L74899DL1983PLC014942 |
|
Name of the
company |
BHUSHAN STEEL LIMITED |
|
Address of the
registered office or of the principal place of business in |
F Block, 1st
Floor, |
|
This form is for |
Creation of
Charge |
|
Type of charge |
Movable Property |
|
Particular of
charge holder |
Indian Overseas Bank, 14-15, Farm Bhawan, |
|
Nature of
instrument creating charge |
Letter of
Hypothecation |
|
Date of
instrument Creating the charge |
29.09.2010 |
|
Amount secured by
the charge |
Rs. 2000.000 Millions
|
|
Brief of the
principal terms an conditions and extent and operation of the charge |
Rate of Interest BASE RATE + 2.25%
i.e. 10.50% Terms of
Repayment One Blulet
Payment after 5 years form the date of first disbursement Margin Nil Extent and
Operation of the charge 100% |
|
Short particulars
of the property charged |
First Charge by
way of hypothecation of all the movables including movable plant and
machinery, machinery spares, tools and accessories, furniture etc. |
Fixed Assets:
Tangible Assets
- Plant and Machinery
- Railway Siding
- Assets not Owned by company
- Furniture and Fixtures
- Vehicles
Intangible Assets
- Computer Software
WEBSITE DETAILS:
Business
Description
Subject is engaged in the steel business. The
Company has a portfolio of flat products, which are manufactured at steel
processing facilities at Sahibabad, Uttar Pradesh. The Company is producing
cold rolled close annealed coils (CRCA), galvanized sheets, precision tubes,
high tensile steel, hardened and tempered steel strip (H and T strips),
wire-rods, color-coated sheets and galume. The Company also produces, sponge
iron, pig iron, billets, slabs, HRC and power. During the fiscal year ended
March 31, 2011, the Company partially installed the Phase II of the integrated
steel plant at Orissa with the production facility of hot roll coil mill (1.90
million tons per annum). During fiscal 2011, the Company manufactured 1191,415
million tons of cold-rolled steel strips/sheets/coils; 545,196 million tons of
cold-rolled galvanized steel strips/sheets/coils; 118,691 million tons of color
coated galvanized steel strips/sheets/coils, and 126,642 million tons of
precision tubes. For the fiscal year ended 31 March 2010, subjects revenues
increased 15% to RS57.48B. Net income applicable to common increased 98% to
RS8.43B. Revenues reflect an increase in income from domestic sales and a rise
in other income. Net income also reflects a decrease in depreciation and
amortisation charges and absence of loss from exchange fluctuation. The Company
is engaged in steel business.
PRESS RELEASE:
INDIAN FIRMS RAISE
US$3.7 BLN IN AUGUST THROUGH ECBS, FCCBS
05 October 2011
MUMBAI, Oct 5Asia Pulse - Corporate India raised over US$3.7 billion
from overseas markets in August through external commercial borrowings (ECBs)
and foreign currency convertible bonds (FCCBs).
Around 70 companies raised over US$2.68 billion for various projects
through the automatic route, which does not require RBI's or the government
approval.
Another US$1.02 billion were raised through the approval route,
according to latest Reserve Bank data.
Auto giant Tata motors alone raised US$500 million through ECBs for its
rupee expenditure.
Similarly, state-owned Steel Authority of India (SAIL, BSE:500113)
mopped up US$500 million in two tranches through ECBs during the month for
modernisation of projects. Electro steel Castings raised US$200 million for the
same purpose.
Corporate, registered under the Companies Act, 1956, were earlier
allowed to access ECBs up to US$500 million in a financial year under the
automatic route. The ECB, which is not covered by the automatic route, is
considered under the approval route on a case-by-case basis by the Reserve
Bank.
However, last month the government raised the limit of external
borrowings, with tenure of 5 years or more under the automatic route, to US$750
million.
For the services sector, the ECB limit under the automatic route was doubled
to US$200 million and for NGOs from US$5 million to US$10 million.
ECBs are used as an additional source of funding by Indian corporate to
augment resources available domestically.
FCCBs are also governed by norms similar to ECBs.
Other major fund raisers in August were Idea Cellular (BSE:532822) -
US$150 million, and Bhushan Steel (BSE:500055)- US$135 million in three
tranches for various project.
Under the approval route in August, national carrier Air
PRESS RELEASE:
Indian firms raise
$3.7 billion by way of ECBs in August 2011
Accord Fintech (
05 October 2011
PRESS RELEASE:
Tension in D'nal
steel plant after worker's death
Pioneer, The
15 September 2011
Dhenkanal, Sept. 15 -- Tension prevailed at the Bhusan Steel plant here
on Wednesday as the workers gheraoed the main gate from 6.30 am to 2 pm
following the death of a labourer, during stone quarry blasting.
According to sources, Bauri Bandhu Pradhan (26) of village Kantamila in
Hindol was working as a contract labour at Bhushan Steel phase- II under L and
T and M.R. Engineering.
On Tuesday night Bauri, after completing his 'C' shift duty, slept in a store
room and asked his friends to lock him from out side so that no one will
disturb him till morning.
Incidentally few employees conducted a blasting in a stone quarry
existing in the plant premises at about 6 am.
A big block of stone, during the blasting hit the asbestos roof of the
store room where Bauri was taking rest. Ironically, the stone block hit the
forehead of Bauri and he died on the spot.
However, the aggrieved labourers resumed their work after one pm after
police interference and as the L and T and M.R. Engineering paid Rs 0.200
million in cash towards his cremation and other expenses and a cheque of
Rs.0.600 million towards compensation.
The body of Bauri was handed over to his family after post mortem at
PRESS RELEASE:
Accord Fintech (
30 August 2011
India, Aug. 30 -- Hindustan Zinc is currently trading at Rs 129.90, up
by 7.05 points or 5.74% from its previous closing of Rs 122.85 on the BSE.The
scrip opened at Rs 123.85 and has touched a high and low of Rs 131.50 and Rs
123.45 respectively. So far 153000 shares were traded on the counter.The BSE
group 'A' stock of face value Rs 2 has touched a 52 week high of Rs 155.25 on
21-Apr -2011 and a 52 week low of Rs 102.30 on 31-Aug -2010.Last one week high
and low of the scrip stood at Rs 131.50 and Rs 114.90 respectively. The current
market cap of the company is Rs 548860 millions. The promoters holding in the
company stood at 64.92% while Institutions and Non-Institutions held 32.96% and
2.11% respectively. The other top gainers on the "BSE Metal" space
include Jindal Steel up 5.63% Tata Steel up by 4.90%, JSW Steel up by 4.60%,
Hindalco Industries up by 4.27% and Bhushan Steel up by 3.14%.The company has
recently raised zinc prices by 1.4% to Rs 115,800 a metric ton effective from
August 22, 2011. However, the company lowered lead prices by 0.9% to Rs 123,200
a ton. Earlier in July, the company had lowered zinc prices by 1.4% to Rs
120,400 a tonne.
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.49.13 |
|
|
1 |
Rs.77.58 |
|
Euro |
1 |
Rs.67.58 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
8 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
8 |
|
--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 |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
65 |
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.