MIRA
INFORM REPORT
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Report Date : |
31.10.2011 |
IDENTIFICATION DETAILS
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Name : |
TATA STEEL PROCESSING AND DISTRIBUTION LIMITED |
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Registered
Office : |
Tata Centre, 43, Chowringhee Road, Kolkata
– 700071, West Bengal |
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Country : |
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Financials (as
on) : |
31.03.2011 |
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Date of
Incorporation : |
17.04.1997 |
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Com. Reg. No.: |
084005 |
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Capital
Investment / Paid-up Capital : |
Rs.682.500 Millions |
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CIN No.: [Company Identification
No.] |
U27109WB1997PLC084005 |
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TAN No.: [Tax Deduction &
Collection Account No.] |
CALT02091F |
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PAN No.: [Permanent Account No.] |
AABCT1029L |
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Legal Form : |
A Closely Held Public Limited Liability Company |
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Line of Business
: |
The company is currently engaged in processing and distribution of
finished steel (flat and long) |
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No. of Employees
: |
Not Available |
RATING & COMMENTS
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MIRA’s Rating : |
A (61) |
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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 12000000 |
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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 subsidiary of Tata Steel Limited, India. It is a well established
company having fine track. Financial position of the company appears to be
sound. 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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A1 |
A1 |
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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/ Head/ Projects Engineering & Technology Office: |
Tata Centre, 43, Chowringhee Road, Kolkata
– 700071, West Bengal, India |
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Tel. No.: |
91-33-66130600 |
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Fax No.: |
91-33-22882713 |
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E-Mail : |
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Website : |
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Sales and Marketing Office : |
8th Floor, Kankaria Estate, 6, Little Russel Street, Kolkata – 700071,
West Bengal, India |
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Tel. No.: |
91-33-66130640/ 643 |
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Fax No.: |
91-33-66130659 |
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E-Mail : |
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HR/Project Office: |
4th Floor, 8/1 A, Little Russel Street, Kolkata – 700007,
West Bengal, India |
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Tel. No.: |
91-33-66163100 |
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Fax No.: |
91-33-66163115 |
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E-Mail : |
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Distribution Centres - |
Located at: · Bangalore · Bhubaneswar · Chennai · Roorkee · Faridabad · Gurgaon · Jamshedpur · Kanpur · Kolkata · Ludhiana · Noida · Pune · Raipur · Pantnagar |
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Service Centres in Operations: |
Located at: · Faridabad · Jamshedpur · Pantnagar · Pune · Tada |
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Upcoming Services Centres : |
Located at: · Sanad · Faridabad · Chennai · Jamshedpur |
DIRECTORS
(AS ON 31.03.2011)
|
Name : |
Mr. Anand Sen |
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Designation : |
Chairman |
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Name : |
Mr. Sandipan Chakravortty |
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Designation : |
Managing Director |
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Date of Birth/Age : |
62 years |
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Qualification : |
M. Tech, IIT Kharagpur |
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Date of Appointment : |
39 years |
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Previous Employees : |
General Manager (Sales), Tata Steel Limited |
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Name : |
Mr. Jayanta Chkraborty |
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Designation : |
Director |
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Name : |
Mr. T V Narendran |
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Designation : |
Additional Director |
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Name : |
Mr. Mohan Lal |
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Designation : |
Additional Director |
KEY EXECUTIVES
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Name : |
Mr. Asis Mitra |
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Designation : |
Company Secretary |
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Name : |
Mr. Abraham Stephanos |
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Designation : |
Chief Operating Officer |
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Email : |
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Name : |
Mr. Pratik Chatterjee |
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Designation : |
General Manager and Chief Executive Officer |
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Name : |
Mr. D. Samaddar |
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Designation : |
General Manager (West) |
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Name : |
Mr. P K Sahu |
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Designation : |
General Manager (HR and IR) |
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Name : |
Mr. Sanjay Doodani |
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Designation : |
General Manager (North) |
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Name : |
Mr. Om Prakash |
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Designation : |
General Manager (Jamshedpur and East Sales) |
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Audit Committee : |
· Mr. Anand Sen – Chairman · Mr. T. V. Narendran · Mr. Mohan Lal |
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Remuneration Committee: |
· Mr. Anand Sen – Chairman · Mr. T. V. Narendran · Mr. Mohan Lal |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
Shareholding Patterns is not available.
BUSINESS DETAILS
|
Line of Business : |
The company is currently engaged in processing and distribution of
finished steel (flat and long) |
PRODUCTION STATUS (AS ON 31.03.2011)
|
Particulars |
Unit |
Actual Production |
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Electricity - Steel Processing
and Distribution |
(KWH/ MT) |
6.48 |
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GENERAL INFORMATION
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No. of Employees : |
Not Available |
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Bankers : |
· State Bank of India · Bank of Maharashtra · Bank of Baroda · HDFC Bank Limited |
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Banking
Relations : |
-- |
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Auditors : |
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Name : |
Deloitte Haskins and Sells Chartered Accountant |
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Subsidiaries : |
· Tata Steel Limited, India |
CAPITAL STRUCTURE
(AS ON 21.07.2011)
Authorised Capital: Rs.750.000
Millions
Issued, Subscribed & Paid-up Capital: Rs.682.500 Millions
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE SHEET
|
SOURCES OF FUNDS |
|
31.03.2011 |
31.03.2010 |
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|
SHAREHOLDERS FUNDS |
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1] Share Capital |
|
682.500 |
682.500 |
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2] Share Application Money |
|
0.000 |
0.000 |
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3] Reserves & Surplus |
|
2379.759 |
1954.388 |
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4] (Accumulated Losses) |
|
0.000 |
0.000 |
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NETWORTH |
|
3062.259 |
2636.888 |
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LOAN FUNDS |
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1] Secured Loans |
|
735.147 |
860.720 |
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2] Unsecured Loans |
|
110.410 |
572.635 |
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TOTAL BORROWING |
|
845.557 |
1433.355 |
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DEFERRED TAX LIABILITIES |
|
36.712 |
76.672 |
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TOTAL |
|
3944.528 |
4146.915 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
|
1646.198 |
1683.897 |
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Capital work-in-progress |
|
54.496 |
83.816 |
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INVESTMENT |
|
275.730 |
167.505 |
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DEFERREX TAX ASSETS |
|
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
|
1395.253
|
811.062 |
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Sundry Debtors |
|
1370.858
|
1598.866 |
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Cash & Bank Balances |
|
158.899
|
331.522 |
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Other Current Assets |
|
0.000
|
0.000 |
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Loans & Advances |
|
278.535
|
344.682 |
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Total
Current Assets |
|
3203.545
|
3086.132 |
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|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
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Sundry Creditor and Other Current Liabilities |
|
1140.474
|
801.463 |
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Provisions |
|
94.967
|
72.972 |
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Total
Current Liabilities |
|
1235.441
|
874.435 |
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Net Current Assets |
|
1968.104
|
2211.697 |
|
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MISCELLANEOUS EXPENSES |
|
0.000 |
0.000 |
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TOTAL |
|
3944.528 |
4146.915 |
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PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
|
31.03.2011 |
31.03.2010 |
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SALES |
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|
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Income |
|
15891.556 |
12543.050 |
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Other Income |
|
43.963 |
71.593 |
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TOTAL (A) |
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15935.519 |
12614.643 |
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|
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Less |
EXPENSES |
|
|
|
|
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|
Manufacturing and Other Expenses |
|
15073.599 |
11746.623 |
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|
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Less: Expenditure (Other than Interests) Transferred to Capital and
Other Accounts |
|
(1.305) |
(4.671) |
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Impairment Loss |
|
0.000 |
82.894 |
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TOTAL (B) |
|
15072.294 |
11824.846 |
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|
|
|
|
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Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
|
863.225 |
789.797 |
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Less |
FINANCIAL
EXPENSES (D) |
|
96.720 |
115.951 |
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PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
|
766.505 |
673.846 |
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Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
|
140.598 |
155.173 |
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|
PROFIT BEFORE
TAX (E-F) (G) |
|
625.907 |
518.673 |
|
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Less |
TAX (H) |
|
200.536 |
202.950 |
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PROFIT AFTER TAX
(G-H) (I) |
|
425.371 |
315.723 |
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Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
|
1954.388 |
1638.665 |
|
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|
|
|
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BALANCE CARRIED
TO THE B/S |
|
2379.759 |
1954.388 |
|
|
|
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|
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IMPORTS |
|
|
|
|
|
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Finishing Goods for Trading |
|
6.653 |
16.557 |
|
|
|
Stores & Spares |
|
5.549 |
3.036 |
|
|
|
Capital Goods |
|
0.000 |
26.773 |
|
|
TOTAL IMPORTS |
|
12.202 |
46.366 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
|
6.23 |
4.63 |
|
KEY RATIOS
|
PARTICULARS |
|
|
31.03.2011 |
31.03.2010 |
|
PAT / Total Income |
(%) |
|
2.67 |
2.50 |
|
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|
Net Profit Margin (PBT/Sales) |
(%) |
|
3.94 |
4.14 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
|
12.91 |
10.87 |
|
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Return on Investment (ROI) (PBT/Networth) |
|
|
0.20 |
0.20 |
|
|
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|
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|
Debt Equity Ratio (Total Liability/Networth) |
|
|
0.68 |
0.88 |
|
|
|
|
|
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|
Current Ratio (Current Asset/Current Liability) |
|
|
2.59 |
3.53 |
LOCAL AGENCY FURTHER INFORMATION
OPERATIONS:
The Company achieved the highest ever tolling and
distribution volumes and has surpassed the 1.4 million MT mark. The Company has
joined the prestigious league of Rs.1500 plus turnover companies by clocking a
turnover of Rs.15940.000 Millions. The improved performance during the year has
resulted in highest ever PBT of 625.900 Millions.
Company’s Jamshedpur Business Unit continued its record breaking
performance and had achieved record volumes in both tolling and distribution
business as also highest ever turnover. It has successfully processed ATOS 800
material for World Truck and skin panels for Toyota Etios cars. As a measure of
capability enhancement, the Ranjangaon Plant has started processing materials
for dish TV antenna applications for the first time. The same unit has also
achieved highest ever Cold Rolled Sheet (CRS) and Cold Rolled Wide Cut to
Length (CRWCTL) production. Company’s Faridabad processing unit has also
achieved best ever distribution sales, Hot Rolled (HR) and Galvano sales and
Cold Rolled processing volume. The same unit has achieved 100% quality
compliance with customers’ delivery conditions. Company’s Pantnagar unit has
crossed the milestone of producing 1 Lac components for Nano. Pantnagar unit
has also crossed 50000 MT despatch target of processed materials. Plate
processing unit of the Company at Tada has achieved highest turnover since
inception and successfully processed components for Caterpillar, Russia.
Safety has remained a primary area of attention and by following Du Pont Safety initiatives, the company achieved 77% reduction in injury rate and 58% reduction in Long Term Injury Frequency Rate (LTIFR) compared to FY 2010. Company’s units at Bara, Faridabad and Pantnagar had been able to experience a Long Term Injury free year. Different units of the Company have started the programme- ‘Suraksha Bandhan’, an initiative for safety at customers end.
AWARDS AND ACHIEVEMENTS
Different units of the Company have registered notable
achievements and received reputable accolades during the year. Some of them are
enumerated below:
· The Pantnagar Unit won the Northern Region Tata Innovista Award.
· The Jamshedpur Unit got recertified for TS 16949 and OHSAS 18001
· The Faridabad Unit facilitated Tata Steel to get “Best Supplier Award” from Maruti.
· The Pune Unit received certification of OHSAS 18001 and EMS 14001:2004.
· The Pune Unit was declared an all India topper among all Steelium and Galvano Service Centres of TSL Distributors in
· Ace plus certification preliminary audit.
· The Pantnagar Unit got the “Distinguished Award” by NCQC for its Nano component line.
· Tada Unit was re-certified for the prestigious SQEP certification by Caterpillar.
MARKET CONDITIONS
Economy and Outlook
India, an emerging economy, has witnessed unprecedented
levels of economic expansion, along with other emerging countries of the world.
India, being a cost effective and labour intensive economy, has benefited
immensely from outsourcing of work from developed countries, and a strong
manufacturing and export oriented industrial framework.
The Indian economy has regained the pre-crisis growth
momentum, and is expected to maintain the eight percentage plus growth
trajectory in FY 12 with its real GDP projected to grow by 8.8% during the
fiscal. With the industrial sector, projected to grow by 9.4% during FY12, as
compared to 8.6% estimated in FY11, there is a need for adjustment in the
composition in demand and supply side.
INDUSTRY
PERFORMANCE AND OUTLOOK
Automobile:
As far as TSPDL is concerned, the Auto industry, is the
segment of high strategic importance. The auto industry with strong domestic
sales has grown at a rate of 26.17% in FY 11. Overall Automobile industry is
expected to grow by 12-15% in FY 12 as compared to FY 11, as per the data
released by the Society of Indian Automobile Manufacturers (SIAM) With the M
and HCV sector registering a sales growth of 31.7%, LCVs growing at 23%,
Passenger cars growing at 30% and two wheelers registering a sales growth of
26%, in Fy11, the trend is expected to continue in Fy12.
Capital Goods, Earthmoving and Construction Equipment:
With the Government substantially increasing the allocation
for infrastructure projects in the Union Budget of FY12 and private corporate
investment displaying signs of recovery, the capital goods sector is also
showing an upward trend of growth in the coming fiscal.
The Indian earthmoving and construction equipment sector has
the potential to grow fivefold to approximately Rs.540000.000 Millions –
580000.000 Millions within the next few fiscals, growing at 24% compound annual
growth rate. Driving growth in the earthmoving equipment industry are mining
and construction industries including real estate as well as infrastructure
works such as roads, airports, urban development and irrigation. As per the
latest report published by CMIE, the Construction sector is projected to grow
by 10.5% during FY12, as compared to an estimated 9.5% during FY11.
STEEL:
With nearly 80 million tonnes per annum (MTPA) installed
capacity, India is currently the world's fifth largest producer of crude steel.
India’s finished steel production in FY11 was 8.8% more than in FY10 while the
finished steel consumption growth was 9.9%. There has been a fall in steel
imports by 11.4% in Fy11 whereas exports have gone up by 3.3% in FY11 compared
to FY10.
COMPETITION:
With existing steel service centres expanding their capacity
and new players coming in the market, 3.3 million metric tonnes is the
approximate processing capacity in FY12 by organized players. However most of
these SSCs are being set up either through JVs with an OEM, or a trading house,
or as a captive unit for a steel mill. Stringent product and service
requirements from OEMs have led to addition of sophisticated processing
facilities of global standards by the SSCs in India.
CAUTION
STATEMENT:
Statements included in this section (Market Conditions) may
be forward looking predictions. However, subsequent factors unknown at the
moment and over which the Company does not have any control, may cause
significant difference to the Company’s operations.
WEBSITE DETAILS:
ORGANISATION:
Subject is wholly owned subsidiary of Tata Steel. With 8
large processing units, 15 sales locations and a host of partners like external
processing agencies, suppliers, retailers and other stakeholders, subject is
India’s largest steel service organisation.
The past 12 years brought astounding changes in the Indian
growth scenario and subject maintained its strong growth path with commitments
to quality processing, innovations and customer focus.
Keeping in view the rapid expansion, consolidation,
technology changes and an increasing number of steel consumers and OEMs,
Company has embarked on a series of expansions and ventured into new business
areas like Rebar processing, Stainless Steel (TRYNOXTM) and Plate
fabrication and Roll forming operations.
The journey that started in 1997 with unit at Bara in
Jamshedpur and a turnover of Rs.18.000 Millions in 1997-1998 has reached a
figure Rs.12900.000 Millions turnover in 12 years with a combined processing
and distribution volume over 1.3 million tonnes, speaks about the strategic
directions and stable vision of the company.
Company is equipped with processing plants at Jamshedpur,
Faridabad, Pune, Tada, Pantnagar with a processing capacity of 2.5 Million
tones per annum, all integrated with SAP R/3 ERP package. It is also coming up
with new facilities at Sanand, near Gujarat for Roll forming and stretch
bending.
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.48.82 |
|
|
1 |
Rs.78.57 |
|
Euro |
1 |
Rs.69.29 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
7 |
|
--CREDIT LINES |
1~10 |
7 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
61 |
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.