MIRA
INFORM REPORT
|
Report Date : |
05.01.2012 |
IDENTIFICATION DETAILS
|
Name : |
RASHTRIYA ISPAT
NIGAM LIMITED |
|
|
|
|
Registered Office : |
Administrative
Building, |
|
|
|
|
Country : |
|
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|
|
|
Financials (as on) : |
31.03.2011 |
|
|
|
|
Date of Incorporation : |
18.02.1982 |
|
|
|
|
Com. Reg. No.: |
01-3404 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs.78273.162
Millions |
|
|
|
|
CIN No.: [Company
Identification No.] |
U27109AP1982GOI003404 |
|
|
|
|
TAN No.: [Tax
Deduction & Collection Account No.] |
VPNR00283D /
VPNR00392A |
|
|
|
|
Legal Form : |
Public Limited
Liability Company. The company’s entire capital is held by Government of
India |
|
|
|
|
Line of Business : |
Manufacturing and
Marketing of steel products |
|
|
|
|
No. of Employees : |
17829
(Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
A (60) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
Maximum Credit Limit : |
USD 530000000 |
|
|
|
|
Status : |
Good |
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|
|
|
Payment Behaviour : |
Regular |
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|
|
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Litigation : |
Clear |
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|
|
Comments : |
Subject is a government of India company having satisfactory track.
Available information indicates high financial responsibility of the company
since it is a government of 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
|
Country Name |
Previous Rating (30.06.2011) |
Current Rating (30.09.2011) |
|
|
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 : |
Administrative
Building, Vishakhapatnam – 530 031, |
|
Tel. No.: |
91-891-2518325 /
538 / 2888360 / 390 / 2888247 / 2518360 |
|
Fax No.: |
91-891-2518753 / 756
/ 2888316 /2518321 |
|
E-Mail : |
|
|
Website |
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|
Area: |
22685 sq. m. |
|
Location: |
Owned |
|
|
|
|
Regional
Office1 : |
1, |
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|
|
|
Regional
Office 2 : |
101, Free Press
House, Nariman Point, Mumbai - 400 021, |
|
|
|
|
Regional
Office 3 : |
184, Anna Salai,
Chennai - 600 006, |
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|
|
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Regional
Office 4 : |
15, |
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|
|
|
Factory 1 : |
Vishakhapatnam,
District Vishakhapatnam, |
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|
|
|
Factory 2 : |
Jaggayyapeta,
District Krishna, |
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|
|
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Factory 3 : |
Madharam,
District Khamman, |
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|
|
|
Guest House: |
1, |
|
Tel. No.: |
91-33-2242 2856 /
2242 1968 / 2334 4034 (Res.) |
|
Fax No.: |
91-33-2242 7896 |
|
|
|
|
Guest House: |
Khanji Bhavan,
10-3-311/A, Masab Tank, Ground Floor, |
|
Tel. No.: |
91-40-2353 5167 /
6267 / 2406 9207 (Res.) |
|
Fax No.: |
91-40-2353 2167 |
|
|
|
|
Northern
Region : |
·
6TH Floor, ·
Block No.38/4-B, F-10 and 11, Near ·
117/L/452,Channi House, 1st
Floor, Naveen Nagar, Near Double Pullia, ·
S.C.O.No.141-142, 2nd Floor, Sector
8-C, ·
SCO-3, 1st Floor, HUDA
Complex,Sec-19, ·
B-5, RDC, ·
·
Master Chambers, 5th Floor, 19, Firoz
Gandhi Market, ·
33/20,Ganapati Kunj, |
|
|
|
|
Eastern
Region: |
·
1, ·
IPICOL House, ·
West Boring |
|
|
|
|
Western
Region: |
·
101, Free Press House, Free ·
NBCC Hours, 1st Floor, Near ·
107-109, ·
3025/8, Shreenidhi Chambers, 1st
Floor, Senapati Bapat Marg, PUNE - 411 016 ·
317, |
|
|
|
|
Southern
Region: |
·
·
303, 3rd Floor, ·
·
·
457/1B1, Deshpande Nagar, Hubli - 580
029 |
|
|
|
|
Andhra Region:
|
·
10-3-311/a, Khanij Bhavan, ·
D-Block, Project Office Complex,
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|
|
|
|
D-Block, Project Office , |
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|
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Marketing Department 530 031. |
DIRECTORS
As on : 31.03.2011
|
Name : |
Mr. A.P. Choudhary |
|
Designation : |
Chairman-Cum-Managing Director |
|
Address : |
Kalyani Apartments, A-108, Sector – 6, Vasundhara, Gaziabad – 201012, |
|
Date of Birth/Age : |
26.12.1953 |
|
Date of Appointment : |
01.06.2009 |
|
|
|
|
Name : |
Mr. P K Bishnoi |
|
Designation : |
Chairman-Cum-Managing Director |
|
Date of Birth/Age : |
03.07.1951 |
|
Address : |
Steel House, Directors Bungalow , Sector – 7, |
|
Qualification : |
BE, MBA |
|
Date of Appointment : |
01.04.2004 |
|
|
|
|
Name : |
Mr. Umesh Chandra |
|
Designation : |
Director – (Operations) |
|
Address : |
D-1, Ukkunagaram, |
|
Date of Birth/Age : |
02.07.1954 |
|
Date of Appointment : |
01.11.2008 |
|
|
|
|
Name : |
Mr. A.P. Choudhary |
|
Designation : |
Director – (Projects) |
|
Address : |
Kalyani Apartments, A-108, Sector – 6, Vasundhara, Gaziabad – 201012, |
|
Date of Birth/Age : |
26.12.1953 |
|
Date of Appointment : |
01.06.2009 |
|
|
|
|
Name : |
Mr. P. Madhusudhan |
|
Designation : |
Director – (Finance) |
|
Address : |
D-3, Director’s Bunglow, Sector – 7, Ukkunagaram, |
|
Date of Birth/Age : |
09.04.1958 |
|
Date of Appointment : |
02.11.2009 |
|
|
|
|
Name : |
Mr. T K Chand |
|
Designation : |
Director – (Commercial) (w.e.f. 22nd Sept, 2010) |
|
|
|
|
Name : |
Mr. Y. Manohar |
|
Designation : |
Director – (Personnel) (upto 30th Sept.,
2010) |
|
Address : |
D-1, Director’s Bunglow, Sector – 7, Ukkunagaram, |
|
Date of Birth/Age : |
15.09.1950 |
|
Date of Appointment : |
20.03.2007 |
|
|
|
|
Name : |
Mr. Y R Reddy |
|
Designation : |
Director – (Personnel) (w.e.f. 22nd Dec.,
2010) |
|
|
|
|
Name : |
Mr. S. Machendra Nathan |
|
Designation : |
Government Director (w.e.f. 24th May,
2010) |
|
Address : |
A-1-5, Koyembedu, South Asia Games, |
|
Date of Birth/Age : |
07.03.1954 |
|
Date of Appointment : |
24.05.2010 |
|
|
|
|
Name : |
Mr. Dilip Singh |
|
Designation : |
Government Director |
|
Address : |
L-31, Nevedita Kunj, Sector – 10, R.K. Puram, |
|
Date of Birth/Age : |
09.04.1956 |
|
Date of Appointment : |
07.11.2008 |
|
|
|
|
Name : |
Mr. A P V N Sarma |
|
Designation : |
Independent Directors - (w.e.f. 30th Sept.,
2010) |
|
|
|
|
Name : |
Mr. H S Chahar |
|
Designation : |
Independent Directors - (w.e.f. 30th
Sept., 2010) |
|
|
|
|
Name : |
Mr. Swashpawan Singh |
|
Designation : |
Independent Directors - (w.e.f. 1st Oct.
2010) |
|
|
|
|
Name : |
Dr. U D Choubey |
|
Designation : |
Independent Directors - (w.e.f. 11th Oct.,
2010) |
KEY EXECUTIVES
|
Name : |
Mr. P. Mohan Rao |
|
Designation : |
Company Secretary |
|
|
|
|
Name : |
Mr. B. S. Satyendra |
|
Designation : |
Assistant General Manager |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on : 24.07.2010
|
Names of Shareholders (Equity Shares) |
|
No. of Shares |
|
The President of |
|
48898456 |
|
P.K. Bishnoi |
|
3 |
|
P. Madhusudan |
|
1 |
|
S. Machendranathan |
|
1 |
|
Dilip Singh, IAS |
|
1 |
|
|
|
|
|
Total |
|
48898462 |
|
Names of Shareholders (Preferences Shares) |
|
No. of Shares |
|
The President of |
|
29374700 |
|
|
|
|
|
Total |
|
29374700 |
Equity Share Breakup (Percentage of Total Equity)
As on : 24.07.2010
|
Category |
Percentage |
|
Government
(Central and State ) |
100.00 |
|
Bodies corporate |
0.00 |
|
Directors or relatives of Directors |
0.00 |
|
Other top fifty shareholders |
0.00 |
|
Total |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturing and
Marketing of steel products |
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Products : |
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||||||||
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Brand Names : |
Rabars: Vizar TMT Strycturals:
Vizag Ukku |
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||||||||
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Agencies Held : |
Sold through own
Branches |
PRODUCTION STATUS ( AS ON 31.03.2011)
|
Particulars |
Unit |
Installed
Capacity |
Actual
Production |
|
Wire Rods |
Tonnes in ‘000s |
850 |
1016 |
|
Light and Medium
Merchant Products-Bar Mill |
Tonnes in ‘000s |
710 |
868 |
|
Saleable Billets |
Tonnes in ‘000s |
246 |
35 |
|
Medium Merchant
Structural Mill |
Tonnes in ‘000s |
850 |
1044 |
|
|
|
|
|
|
Pig Iron |
Tonnes in ‘000s |
556 |
318 |
|
Granulated Slag |
Tonnes in ‘000s |
1440 |
1336 |
|
Coke Ovens
By-products |
Tonnes in ‘000s |
186 |
167 |
Note:
Licensed capacity not applicable in terms of Government of India notification
No. S.O.477(E), dated 25Th July, 1991.
GENERAL INFORMATION
|
No. of Employees : |
17829
(Approximately) |
||||||||||||||||||||||||||||||
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|
|
||||||||||||||||||||||||||||||
|
Bankers : |
·
State
Bank of ·
Andhra
Bank, Vishakhapatnam, ·
Bank
of ·
Canara
Bank ·
UCO
Bank ·
Central
Bank of ·
Dena
Bank ·
·
Oriental
Bank of Commerce ·
State
Bank of ·
State
Bank of Saurashtra ·
State
Bank of ·
Indian
Overseas Bank ·
Indian
Bank ·
HSBC
Bank ·
IDBI
Bank ·
Allahabad
Bank ·
Axis Bank ·
IndusInd Bank ·
HDFC Bank ·
Deutsche Bank ·
Bank of ·
Bank of ·
Citi Bank ·
Standard Chartered Bank ·
HSBC Bank |
||||||||||||||||||||||||||||||
|
|
|
||||||||||||||||||||||||||||||
|
Facilities : |
|
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
B. V. Rao and Company Chartered Accountants |
|
Address : |
Flat No. FF-01, |
|
|
|
|
Joint Venture : |
International Coal Ventures Private Limited RINMOIL Ferro Alloys Private Limited |
CAPITAL STRUCTURE
As on : 31.03.2011
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
48900000 |
Equity shares |
Rs.1000/- each |
Rs.48900.000 millions |
|
31100000 |
Preference Shares |
Rs.1000/- each |
Rs.31100.000 millions |
|
|
Total |
|
Rs.80000
Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
48898462 |
Equity shares |
Rs.1000/- each |
Rs.48898.462 millions |
|
29374700 |
7 % Non -
Cumulative Redeemable preference shares |
Rs.1000/- each |
Rs.29374.700 millions |
|
|
Total |
|
Rs.78273.162 Millions |
Note:
Of the above 2181612 Equity Shares of Rs. 100
Each 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 |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
SHAREHOLDERS
FUNDS |
|
|
|
|
|
1] Share Capital |
78273.200 |
78273.200 |
78273.200 |
|
|
2] Share
Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves &
Surplus |
54019.000 |
50576.800 |
45925.900 |
|
|
4] (Accumulated
Losses) |
0.000 |
0.000 |
0.000 |
|
NETWORTH
|
132292.200 |
128850.000 |
124199.100 |
|
|
|
|
|
|
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
2748.900 |
3873.200 |
9077.200 |
|
|
2] Unsecured
Loans |
8618.700 |
8452.300 |
1000.400 |
|
TOTAL BORROWING
|
11367.600 |
12325.500 |
10077.600 |
|
|
DEFERRED TAX
LIABILITIES |
799.700 |
978.200 |
1244.900 |
|
|
|
|
|
|
|
TOTAL
|
144459.500 |
142153.700 |
135521.600 |
|
|
|
|
|
|
|
APPLICATION OF FUNDS
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block]
|
15298.900 |
14653.500 |
12220.600 |
|
Held for disposal
|
0.300 |
0.500 |
0.500 |
|
Capital work-in-progress
|
95367.100 |
75069.000 |
46520.000 |
|
|
|
|
|
|
|
Investments
|
3616.000 |
2.500 |
0.500 |
|
DEFERREX TAX ASSETS
|
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS &
ADVANCES
|
|
|
|
|
|
|
Inventories
|
32547.100 |
24515.200 |
32152.800 |
|
|
Sundry Debtors
|
3306.100 |
1811.800 |
1912.700 |
|
|
Cash & Bank Balances
|
19988.900 |
54155.400 |
66241.700 |
|
|
Other Current Assets
|
759.600 |
1374.000 |
2589.100 |
|
|
Loans & Advances
|
19650.400 |
13650.200 |
15696.900 |
Total Current Assets
|
76252.100 |
95506.600 |
118593.200 |
|
Less :
CURRENT LIABILITIES & PROVISIONS
|
|
|
|
|
|
|
Sundry Creditors
|
11176.900 |
12652.500 |
11494.400 |
|
|
Current Liabilities
|
21537.400 |
16067.000 |
14113.500 |
|
|
Provisions
|
13360.600 |
14358.900 |
16205.300 |
Total Current Liabilities
|
46074.900
|
43078.400
|
41813.200
|
|
Net Current Assets
|
30177.200 |
52428.200 |
76780.000 |
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES
|
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
TOTAL
|
144459.500 |
142153.700 |
135521.600 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
104711.800 |
98091.500 |
91283.800 |
|
|
|
Other Income |
5255.600 |
7368.100 |
9236.700 |
|
|
|
TOTAL (A) |
109967.400 |
105459.600 |
100520.500 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Raw materials consumed |
71883.600 |
55351.100 |
58962.500 |
|
|
|
Depletion / (Accretion) to Stock of
Semi-finished/Finished goods |
(5323.200) |
4153.500 |
(9166.500) |
|
|
|
Employees' remuneration & benefits |
12729.500 |
13997.400 |
11573.500 |
|
|
|
Stores & spares consumed |
4712.200 |
4664.800 |
5012.300 |
|
|
|
Power & fuel |
4250.300 |
4082.700 |
3403.100 |
|
|
|
Repairs & maintenance |
1451.800 |
1421.300 |
1498.100 |
|
|
|
Freight outward |
3007.200 |
3126.500 |
2865.300 |
|
|
|
Other expenses & provisions |
3970.200 |
3139.100 |
3244.600 |
|
|
|
Wealth tax |
4.900 |
4.500 |
8.900 |
|
|
|
Inter account adjustments-raw material mining cost |
(491.000) |
(432.600) |
380.600 |
|
|
|
TOTAL (B) |
96195.500 |
89508.300 |
77021.200 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
13771.900 |
15951.300 |
23499.300 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL EXPENSES (D) |
1645.500 |
775.500 |
874.700 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
12126.400 |
15175.800 |
22624.600 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
2659.400 |
2771.700 |
2404.600 |
|
|
|
|
|
|
|
|
|
|
Profit for the
year |
9467.000 |
12404.100 |
20220.000 |
|
|
|
|
|
|
|
|
|
Add |
Prior period adjustments |
349.600 |
72.400 |
45.900 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
9816.600 |
12476.500 |
20265.900 |
|
|
|
|
|
|
|
|
|
Less |
TAX (I) |
3231.700 |
4509.800 |
6910.200 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-I) (J) |
6584.900 |
7966.700 |
13355.700 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
21178.300 |
16538.300 |
36525.500 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Interim Dividend |
0.000 |
1000.100 |
0.000 |
|
|
|
Proposed Dividend (Final) |
2714.700 |
1852.800 |
3391.800 |
|
|
|
Tax on Interim Dividend |
0.000 |
166.100 |
0.000 |
|
|
|
Tax on Proposed Dividend
(Final) |
440.400 |
307.700 |
576.400 |
|
|
|
Reserve for Redeeming
Preference Share Capital |
0.000 |
0.000 |
29374.700 |
|
|
BALANCE CARRIED
TO THE B/S |
24608.100 |
21178.300 |
16538.300 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export of Goods |
4209.800 |
3509.400 |
783.200 |
|
|
|
Other Earnings |
16.500 |
7.900 |
2.300 |
|
|
TOTAL EARNINGS |
4226.300 |
3517.300 |
785.500 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Spares |
405.600 |
1121.900 |
1010.500 |
|
|
|
Raw Materials |
39667.800 |
26898.800 |
35528.600 |
|
|
|
Capital Goods |
4428.400 |
7555.300 |
3566.400 |
|
|
TOTAL IMPORTS |
44501.8 |
35576.000 |
40105.500 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
85.79 |
113.89 |
223.93 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
PAT / Total Income |
(%) |
5.99
|
7.55 |
13.29 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
9.37
|
12.72 |
22.20 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
10.72
|
11.33 |
15.49 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.07
|
0.10 |
0.16 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
0.43
|
0.43 |
0.42 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.65
|
2.22 |
2.84 |
LOCAL AGENCY FURTHER INFORMATION
Year 2010-11
The year 2010-11
was a defining year as far as steel business models are concerned, when
quarterly pricing mechanism was adopted by oligopoly of international coal suppliers
- passing on short term volatility in coal markets to steel industry which left
steel producers struggling to fine tune their business models. Also, the steel
markets worldwide were sluggish due to higher availability, and prices remained
under pressure for most part of the year, which further had a negative impact
on profitability of steel producers.
Against this
backdrop, RINL recorded its best ever turnover of 11,517 Cr in 2010-11 and
achieved an overall performance that qualifies the company for
"Excellent" rating for eighth time in the last 10 years as per the
MOU with Government of India.
The year 2010-11
saw a steep increase in prices of major raw materials viz coking coal and Iron
ore by about 22% and 55% respectively. A growth of 13% achieved in Net Sales
Realisation (NSR), was not sufficient to maintain the level of profitability
achieved in 2009-10.
Focus of the
company, during the year when profitability was under pressure, was on
maximizing production and sales of value added steels and cost cutting in all
areas through judiciously planned cost reduction measures.
During the year,
the Company recorded a growth of 1% in production of Crude Steel in spite of
the unprecedented rains during the month of November 2010 resulting in disruption
of operations for some time during the period.
The year was
particularly significant in so far as the progress on expansion front is
concerned as the works on major units of expansion have progressed towards last
leg of equipment erection and trial runs and commissioning tests for various
equipments and auxiliary areas have already commenced. Stage-I units of
expansion will be commissioned progressively in 2011-12.
Credit Rating :
M/s FITCH and
CRISIL (Credit Rating Agencies) have maintained highest rating for short term
loans "F1+" and "P1+" respectively and a very good rating
of "AA (Ind)" for long term loans.
Major Milestones
achieved during 2010 - 11 :
In the area of
Expansion and other projects, cold trial runs being a part of commissioning activity
have begun in the year 2010-11 and following activities were accomplished:
- Commissioning of RMHP – 1st
part of RMHP was commissioned for delivery of iron ore fines from new yard
to intermediate point of iron ore feeding to Blast furnaces.
- WRM - 2 - Heating of Re- heating
Furnace in WRM-2 commenced.
- Electrical Sub Stations - 21 Numbers of
Electrical substations were charged during the year and put into operation
including LBSS-6 and LBSS-7.
- Cranes - Total 20 Cranes were
commissioned in WRM-2, SMS - 2, BF-3 and SP-3 and utilization of the same
started and further 10 more Cranes are ready for commissioning.
- Permanent Power Supply – Mostly
Commissioned for RMHP, SP-3, BF-3, SMS-2 and WRM-2 and trial runs for
equipments commenced with permanent power.
- Air, Nitrogen and Steam - Commissioned
and inputs flow started to new units as required.
- Water System:
Commissioned for WRM-2, SMS-2 and BF-3.
- BOF Shop -
Both the converters got rotated on completion of their erection.
- TPP - Hydro
test for 330 TPH Boiler-6 and Box up of turbine of TB-4 completed.
- Oxygen Plant - IV (600 T capacity) –
Erection got completed as per schedule and commissioning commenced. With
the stabilization of this unit, Oxygen will be available timely for
commissioning of new SMS.
- Zero water
Discharge system: Major portion commissioned and being put in operation
progressively.
MANAGEMENT DISCUSSION AND ANALYSIS
INDUSTRY STRUCTURE AND DEVELOPMENTS
Global Economic Environment :
Changing economic and
business conditions and rapid technological innovation are creating an
increasingly competitive market environment that is driving corporations to
transform their operations. Consumers of products and services are increasingly
demanding better quality products and lower prices. Companies are focusing on
their core competencies and are using state of art technology. The role of
technology has evolved from supporting corporations to transforming them.
The year 2010
witnessed calm after the storm, i.e. slowly recovering from the turbulence pain
and panics from the unprecedented Economic and Financial Crisis adversely
impacting the Global Economic growth.
Indian Economy :
The Indian economy
is projected to grow by 8.5% in 2010-11, the fastest in three years, on the
back of a sharp recovery in farm out put, but high inflation remained as an
area of concern all through the year. For 2010-11, the average inflation was
9.5%.
Weathering the
global slow down, the Indian Economy managed to expand by 8% in 2009-10 and
6.8% in 2008-09.
The Government
initiatives and liberalization measures resulted in tremendous response and
growth in the FDI Equity inflows and by middle of March 2011,
There has been
overall growth in other Sectors of the Economy as well and during 2011-12, it
is expected to be better, making
Global Steel Industry :
World crude steel
production in 2010 registered highest ever yearly production of 1414 Mt - a
growth of 15% over 2009, which is 5% higher than the previous peak of 1346 Mt
in 2007. Developing countries like
The majority of
countries have recorded double-digit percentage rises in 2010 relative to 2009.
The largest of these are found in the more economically developed regions.
European Union, North America and
The economic
outlook for 2011 is cautiously optimistic. In the West, certain sectors of the
economy are performing well. However, the construction market remains depressed
and this continues to dampen demand for steel, especially long products.
Government spending cuts and the fragile financial situation could pose further
negative risks.
In 2011, strong
growth in steel production is expected in South America and the
Indian Steel Scenario :
Steel Industry
plays a major role in the economic growth of
With demand driven
by expanding consumer market, the Indian Steel Industry is likely to receive
huge domestic and foreign investments, MOUs (nearly 222) for planned capacity
of around 276 mt have been signed by Steel Investors with various State
Governments mostly in Odisha, Jharkhand, Chhattisgarh and
Finished Steel
Production was registered at 62.69 Mt during 2010-11 in the country as per JPC
and the production is expected to be nearly 110 mt by 2012-13. A Compound
annual growth rate (CAGR) of 8.4% during the five years (2005-06 to 2009-10)
was recorded.
The consumption of
Steel domestically was recorded at 65.61 Mt and shown an increase of 11 %
during 2010-11 as compared to the same period of the previous year.
Government
initiatives included (a) approval by Planning Commission a total outlay of US $
9.5 Billion for the development and promotion of the Iron and Steel Sector; (b)
Scheme for the promotion of research and development in the Iron and Steel
Sector with Budget provision of US$ 24.6 Million (c) review of National Steel
Policy 2005 and process for drafting a 'National Steel Vision' has been
initiated and (d) Five year strategy has been prepared for promotion of Steel
Sector in the country.
The Ministry of
Steel, in association with United Nations Development Programme (UNDP) is
carrying out a Project on "Removal of Barriers to Energy Efficiency
Improvement in Steel Re-rolling Mill Sector in
OUTLOOK FOR THE COMPANY IN 2011-12 :
Notwithstanding
the steep increase in the raw material prices in 2010-11, the outlook for
2011-12 suggests a quantum jump once again, fuelled significantly by the
unprecedented rains and flooding of North - Eastern parts subject 36 of
FIXED ASSETS :
- Plant and
Machinery
- Buildings
- Land –
Leasehold and Freehold
- Railway Lines
and Sidings
- Road, Bridges
and Culverts
- Furniture and
Fittings
- Locomotives
- Vehicles
- Electrical
Installation
- Water Supply
and Sewerage Systems
- Software
- Mining Lease
Rights
PRESS RELEASE:
Date 28.12.2011
REFRACTORIES PLAY VITAL ROLE IN STEEL MAKING
Sri Umesh Chandra,
Director (Operations), RINL/Visakhapatnam Steel Plant said that Steel Industry
has to strike a balance between quality of refractory in terms of weight i.e
cost in order to be globally competitive. The growth of refractory industry is
directionally proportionate to the growth of steel industry and Steel Industry
is the greatest user of refractory which accounts for 70% of world refractory
production, he added.
Sri Umesh Chandra
was the Chief Guest at the “56th Refractory Operating Committee Meeting” hosted
by RINL in Ukkunagaram today. While delivering the inaugural address, Sri Umesh
Chandra said that RINL achieved a specific refractory consumption of 9.8
kg/ton/Crude Steel as against 8-14 kg/ton/Crude Steel in most of the Indian
Steel plants. RINL is striving hard further for focusing on increasing the
lining life of Convertor ladle and increasing the Tundish sequence. This will
lead to reduction of specific refractory consumption which in turn help reduces
cost of production, he said. He said that best refractory operating practices
to be adopted for improving the productivity and production performance. He
called upon the technologists, researchers and refractory industrialists to
enhance the quality of refractory as per the global standards. While mentioning
the current and future expansion of RINL, Sri Umesh Chandra said that
production of superior grades of refractory with low cost is the need of the
hour for improving the performance.
Sri A P Choudhary,
CMD, RINL conveyed his greetings for the success of the seminar and hoped that
the seminar would come out with fruitful deliberations and recommendations as
far as refractory management is concerned.
Sri P C Mohapatra,
ED (Maint) & I/c Works, RINL said that the two day seminar would provide a
platform to identify technological problems and finding solutions for improving
steel making process. Sri P N Rao, GM (Steel), RINL opined that the seminar
would enrich RINL for strengthen the refractory management.
Dr D Mukherjee,
DGM, R&D Centre for irons & Steel (RDCIS)
Sri S K Garai,
DGM, RDCIS read out the Secretary’s report and said that the seminar aimed to
discuss technological problems and find remedial measures in refractory
management. He thanked RINL management for hosting the seminar. Delegates from
RINL, SAIL, Tata Steel, JSW, Essar, Mecon participated.
Date 26.12.2011
RINL-VSP DEDICATES
“SANJEEVAN”
TO SOCIETY
A unique and state
of the art Mobile Cancer Detection Unit “Sanjeevan” equipped with modern
clinical, diagnostic and other systems for early detection of cancer, was
dedicated to the society under the aegis of RINL/Visakhapatnam Steel plant’s
CSR initiatives in association with Lions Cancer Hospital, Visakhapatnam today
at a glittering function held at VSP. The vehicle unit is the first of its kind
in
Sri J Purnachandra
Rao, IPS, Commissioner of Police, Visakhapatnam flagged off the vehicle in the
presence of Sri A P Choudhary, CMD, RINL, Sri D V Subba Rao, eminent lawyer and
also ex-mayor of
Vizag, Lion D
Vijayakumar Raju and Lion DVS Raju.
Sri Umesh Chandra,
Director (Operations), Sri P Madhusudan, Director (Finance) and Sri Y R Reddy,
Director (Personnel) of RINL present on the occasion.
Speaking on the
occasion, Sri Purnachandra Rao lauded the novel initiative of RINL for
embarking this project for providing health care to the rural people and said
that this proves that RINL committed for societal objectives and discharging
its duties for the development of the region. He advised the manpower who
running the mobile unit to work with dedication and devotion to help the rural
people.
Sri A P Choudhary,
CMD said that this year RINL is spending about Rs. 10-12 crores towards CSR per
annum and would be in a position to spend more for social cause once the
current expansion gets underway and earn more profits. Not only in Andhra
Pradesh, RINL will spread to other states where RINL is pursuing captive mines
to help the society, he added. He said that RINL will be embarking a major
expansion plan to reach to 11 mtpa within four to five years.
Sri D V Subba Rao,
Ex Mayor said that launching of the mobile clinic is a remarkable example for a
committed industry like VSP and testifies its social responsibility. He said
that RINL is always in forefront in serving and helping the society.
The mobile cancer
unit aimed to conduct mobile cancer detection camps in the remote areas of
Vizag region and identify early cancer symptoms for subsequent treatment. The
unit equipped with Mammography achine with dark room, Mobile X-ray unit,
multimedia for patient education, ultrasound unit for spot scanning and screening
for cancers, EECG and ophthalmic instruments and automated cell counter and
biochemical lab etc.
Sri R Shankar, GM
(CSR), senior officials of VSP, Union leaders, members of Lions International,
large number of employees attended.
Photo Captions:
1) Sri A P
Choudhary, CMD handing over the key of the mobile unit to the
2)Sri J
Purnachandra Rao, C P inaugurating the Mobile Unit as Sri A P Choudhary, CMD
looking on. (Insert) State of the Art
3)Sri J
Purnachandra Rao flagging off the
4)Sri J
Purnachandra Rao, Sri A P Choudhary, Sri D V Subba Rao and others are going
round inside the mobile unit.
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.53.14 |
|
|
1 |
Rs.83.08 |
|
Euro |
1 |
Rs.69.25 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
8 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
7 |
|
--CREDIT LINES |
1~10 |
6 |
|
--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 |
NO |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
60 |
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.