MIRA
INFORM REPORT
|
Report Date : |
27.11.2012 |
IDENTIFICATION DETAILS
|
Name : |
STEEL AUTHORITY OF INDIA LIMITED BOKARO STEEL PLANT DIVISION OF STEEL AUTHORITY OF INDIA LIMITED |
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Registered
Office : |
Ispat Bhawan, |
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Country : |
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Financials (as
on) : |
31.03.2012 |
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Date of
Incorporation : |
24.01.1973 |
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Com. Reg. No.: |
55-006454 |
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Capital
Investment / Paid-up Capital : |
Rs.41305.300
Millions |
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CIN No.: [Company Identification
No.] |
L27109DL1973GOI006454 |
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TAN No.: [Tax Deduction &
Collection Account No.] |
DELS20873G / DELS27448B / DELS23314E / DELS23327D / DELS22351A /
DELS21126A / DELS06268D / DELS23804E / DELS22350G / DELS22349F / DELS21127B |
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PAN No.: [Permanent Account No.] |
AAACS7062F / AAALS7062F / AAAC57062F |
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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
: |
Manufacturing and Marketing of Pig Iron, Crude Steel, Saleable Steel
and Calcium Ammonium Nitrate. |
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No. of Employees
: |
137496 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
Aa (77) |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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|
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 |
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Maximum Credit Limit : |
USD 1600000000 |
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Status : |
Excellent |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a Government of India company, having excellent track.
Directors are reported to be experienced and respectable businessmen. Fundamentally the company appears to be strong. Trade relations are
reported as fair. Business is active. Payments are reported to be regular and
as per commitments. Company can be considered good for normal business dealings at usual
trade terms and conditions. |
NOTES:
Any query related to this report can be made
on e-mail: infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – June 30, 2012
|
Country Name |
Previous Rating (31.03.2012) |
Current Rating (30.06.2012) |
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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 |
INDIAN ECONOMIC OVERVIEW
India is developing into an open-market economy, yet traces
of its past autarkic policies remain. Economic liberalization, including
industrial deregulation, privatization of state-owned enterprises, and reduced
controls on foreign trade and investment, began in the early 1990s and has
served to accelerate the country's growth, which has averaged more than 7% per
year since 1997. India's diverse economy encompasses traditional village
farming, modern agriculture, handicrafts, a wide range of modern industries,
and a multitude of services. Slightly more than half of the work force is in
agriculture, but services are the major source of economic growth, accounting
for more than half of India's output, with only one-third of its labor force.
India has capitalized on its large educated English-speaking population to
become a major exporter of information technology services and software
workers. In 2010, the Indian economy rebounded robustly from the global
financial crisis - in large part because of strong domestic demand - and growth
exceeded 8% year-on-year in real terms. However, India's economic growth in
2011 slowed because of persistently high inflation and interest rates and
little progress on economic reforms. High international crude prices have
exacerbated the government's fuel subsidy expenditures contributing to a higher
fiscal deficit, and a worsening current account deficit. Little economic reform
took place in 2011 largely due to corruption scandals that have slowed
legislative work. India's medium-term growth outlook is positive due to a young
population and corresponding low dependency ratio, healthy savings and
investment rates, and increasing integration into the global economy. India has
many long-term challenges that it has not yet fully addressed, including
widespread poverty, inadequate physical and social infrastructure, limited
non-agricultural employment opportunities, scarce access to quality basic and
higher education, and accommodating rural-to-urban migration.
|
Source
: CIA |
EXTERNAL AGENCY RATING
|
Rating Agency Name |
FITCH |
|
Rating |
AAA (Long Term Rating) |
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Rating Explanation |
It indicate lowest expectation of default
risk. They are assigned only in cases of exceptionally strong capacity for payment
of financial commitments. This capacity is highly unlikely to be adversely
affected by foreseeable events. |
|
Date |
July 2012 |
RBI DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter in
the publicly available RBI Defaulters’ list.
EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of
31-03-2012.
LOCATIONS
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Registered/ Corporate Office : |
Ispat Bhawan,
Lodhi Road, New Delhi – 110 003, India |
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Tel. No.: |
91-11-24367481
(14 lines) |
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Fax No.: |
91-11-24367015 |
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E-Mail : |
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Website : |
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Factory : |
Integrated Steel
Plants
· Bhilai Steel Plant, Chhattisgarh – 490001, India ·
·
Rourkela Steel Plant – 769 011, · Bokaro Steel Plant – 827 001, Jharkhand, India ·
P. O. Hinoo,
Special Steel
Plants
·
Alloy Steel Plants, ·
·
Visvesvaraya Iron and Steel Plant, Bhadravati, |
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Sail Refractory
Unit : |
Bokaro Steel City – Bokaro – 827004, Jharkhand, India |
DIRECTORS
AS ON 31.03.2012
|
Name : |
Mr. C S Verma |
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Designation : |
Chairman |
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FUNCTIONAL
DIRECTORS |
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Name : |
Mr. Shuman Mukherjee |
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Designation : |
Director (Commercial) |
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Name : |
Mr. Anil Kumar Chaudhary |
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Designation : |
Director (Finance) |
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Name : |
Mr. S. S. Mohanty |
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Designation : |
Director (Technical) |
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Name : |
Mr. H. S. Pati |
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Designation : |
Director (Personnel) |
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Name: |
Mr. T. S. Suresh |
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Designation : |
Director (Projects and Business Planning ) |
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Tel No.: |
91-11-24362897 |
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Name: |
Mr. A. K. Pandey |
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Designation : |
Director (Raw Materials and Logistics) |
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Tel No.: |
91-24366219 |
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GOVERNMENT
DIRECTORS |
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Name : |
Mr. E. K. Bharat Bhushan |
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Designation : |
Additional Secretary and Financial Adviser Ministry of Steel,
Government of India |
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Name : |
Mr. Upendra Prasad Singh |
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Designation : |
Joint Secretary Ministry of Steel, Government of India |
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INDEPENDENT
DIRECTORS |
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Name : |
Prof. Deepak Nayyar |
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Designation : |
Independent Directors |
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Name : |
Mr. A K Goswami |
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Designation : |
Independent Director |
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Name : |
Dr. Jagdish Khattar |
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Designation : |
Independent Director |
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Name : |
Prof. Subrata Chaudhuri |
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Designation : |
Independent Director |
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Name : |
Mr. P. K. Sengupta |
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Designation : |
Independent Director |
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Name : |
Mr. P. C. Jha |
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Designation : |
Independent Director |
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Name: |
Dr. Isher Judge Ahluwalia |
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Designation : |
Independent Director |
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Name: |
Mr. Sujit Banerjee |
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Designation : |
Independent Director |
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Name: |
Mr. Arun Kumar Srivastava |
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Designation : |
Independent Director |
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Name: |
Mr. Devinder Kumar |
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Designation : |
Executive Director (F and A) |
KEY EXECUTIVES
|
CHIEF EXECUTIVE OFFICERS
(PERMANENT INVITEES) |
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Bhilai Steel Plant : |
Mr. Pankaj Gautam |
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IISCO Steel Plant |
Mr. N. K. Jha |
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Rourkela Steel Plant : |
Mr. G. S. Prasad |
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Bokaro Steel Plant : |
Mr. Anutosh Maitra |
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Durgapur Steel Plant : |
Mr. P. K. Bajaj |
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Name: |
Mr. Devinder Kumar |
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Designation : |
Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 30.09.2012
|
Category of
Shareholder |
Total No. of Shares |
Total Shareholding as a % of Total No. of Shares |
|
(A) Shareholding of Promoter and Promoter Group |
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3544690285 |
85.83 |
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|
3544690285 |
85.83 |
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Total shareholding of Promoter and Promoter Group (A) |
3544690285 |
85.83 |
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(B) Public Shareholding |
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|
23491493 |
0.57 |
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|
105469243 |
2.55 |
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183116481 |
4.43 |
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145063132 |
3.51 |
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|
457140349 |
11.07 |
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25779210 |
0.62 |
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|
79604436 |
1.93 |
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15225859 |
0.37 |
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7588355 |
0.18 |
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4215331 |
0.10 |
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3373024 |
0.08 |
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128197860 |
3.10 |
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Total Public shareholding (B) |
585338209 |
14.17 |
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Total (A)+(B) |
4130028494 |
100.00 |
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(C) Shares held by Custodians and against which Depository Receipts
have been issued |
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|
-- |
0.00 |
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|
496795 |
0.00 |
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|
496795 |
0.00 |
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Total (A)+(B)+(C) |
4130525289 |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturing and Marketing of Pig Iron, Crude Steel, Saleable Steel
and Calcium Ammonium Nitrate. |
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Products : |
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PRODUCTION STATUS (AS ON 31.03.2011)
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Particulars |
Unit |
Installed Capacity |
Actual Production |
|
MAIN STEEL
PLANTS |
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Pig Iron |
Tonnes |
2397000 |
260829 |
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Crude Steel (i) |
Tonnes |
12487000 |
13453059 |
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Saleable Steel |
Tonnes |
10740000 |
12324973 |
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ALLOY STEELS
PLANTS |
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Pig Iron |
Tonnes |
58000 |
2341 |
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Crude Steel |
Tonnes |
352000 |
308733 |
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Saleable Steel |
Tonnes |
457000 |
550238 |
NOTES:
i)
Crude Steel installed capacity is in terms of solid
steel as per International Iron and steel Institute.
ii)
"Licensed Capacity" Not applicable (N.A.)
in terms of Government of India Notification No.S.O.477(E) dated 25th July,
1991.
GENERAL INFORMATION
|
No. of Employees : |
137496 (Approximately) |
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Bankers : |
· Allahabad Bank · Andhra Bank · Australia and New Zealand Banking Group Limited · Axis Bank Limited. · Bank of America · Bank of Baroda · Bank of India · Bank of Maharashtra · Bank of Tokyo-Mitsubishi UFJ Limited · Baraclays Bank PLC · BNP Paribas · Canara Bank · Central Bank of India · Citi Bank · Corporation Bank · Credit Agricole Corporate and Investment Bank · Dena Bank · Deutsche Bank · Development Bank of Singapore · Federal Bank Limited · HDFC Bank Limited · ICICI Bank Limited · IDBI Bank · Indian Bank · Indian Overseas Bank · IndusInd Bank Limited · ING Vysya Bank Limited · Jammu and Kashmir Bank Limited · JP Chase Morgan · Kotak Mahindra Bank Limited · Mizuho Corporate Bank · Oriental Bank of Commerce · Punjab and Sind Bank · Punjab National Bank · Royal Bank of Scotland · Standard Chartered Bank · State Bank of Bikaner and Jaipur · State Bank of Hyderabad · State Bank of India · State Bank of Mysore · State Bank of Patiala · State Bank of Travancore · Sumitomo Mitsui Banking Corporation · Syndicate Bank · UCO Bank · Union Bank of India · United Bank of India · Vijaya Bank · Yes Bank Limited |
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Facilities : |
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Banking
Relations : |
-- |
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Auditors : |
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Statutory Auditors : |
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|
Name : |
S. K. Mittal and Company Chartered Accountants |
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Statutory Auditors 1 : |
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|
Name : |
O. P. Totla and Company Chartered Accountants |
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Statutory Auditors 2 : |
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Name : |
Tej Raj and Pal Chartered Accountants |
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Joint Ventures : |
·
SAIL Bansal Service Centre Limited ·
Mjunction Services Limited ·
UEC-SAIL Information Technology Limited ·
Romelt SAIL (India) Limited ·
N.E Steel and Galvanising Private Limited ·
Bhilai Jaypee Cement Limited ·
Bokaro Jaypee Cement Limited ·
S and T Mining Company Private Limited |
CAPITAL STRUCTURE
AS ON 31.03.2012
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
5000000000 |
Equity Shares |
Rs.10/- each |
Rs.50000.000 Millions |
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Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
4130525289 |
Equity Shares |
Rs.10/- each |
Rs.41305.300
Millions |
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|
|
|
|
NOTE:
(I) Reconciliation of equity shares at the end of the year
|
Particulars |
31.03.2012 |
|
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|
Number |
Amount (Rs. In Millions) |
|
|
|
|
|
-- Equity shares with voting rights |
|
|
|
Shares outstanding at the beginning of the year |
4130400545 |
41304.005 |
|
Shares Issued during the year |
124744 |
1.247 |
|
Shares bought back during the year |
-- |
-- |
|
Shares outstanding at the end of the year |
4130525289 |
41305.253 |
|
|
|
|
|
-- Equity shares without voting rights* |
|
|
|
Shares outstanding at the beginning of the year |
614245 |
6.142 |
|
Shares Issued during the year |
-- |
-- |
|
Shares bought back during the year |
-- |
-- |
|
Shares outstanding at the end of the year |
590345 |
5.903 |
* Represented by
one Global Depository Receipt (GDR) issued @ US$ 29.55 each for an aggregate
amount of US $ 125 million
(ii) All shares
rank equally with regard to the repayment of capital in the event of
liquidation of the company.
(iii) The Company does not have a holding company.
Details of the shareholders holding more than 5% of the shares in the
company
|
Particulars |
31.03.2012 |
|
|
|
No. of Shares held |
% of Holding |
|
|
|
|
|
Government of India |
3544690285 |
85.82 |
1,24,43,82,900
equity shares of`Rs.10/- each (net of adjustments on reduction of capital) were
allotted as fully paid up for consideration other than cash.
The company has
neither issued bonus shares nor the company has bought back any shares during
the last 5 years.
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
41305.300 |
41304.000 |
41304.000 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
356807.900 |
329390.700 |
291863.000 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
398113.200 |
370694.700 |
333167.000 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
74819.100 |
116457.100 |
77559.000 |
|
|
2] Unsecured Loans |
86153.000 |
74100.900 |
87553.500 |
|
|
TOTAL BORROWING |
160972.100 |
190558.000 |
165112.500 |
|
|
DEFERRED TAX LIABILITIES |
16444.800 |
14910.700 |
14149.200 |
|
|
|
|
|
|
|
|
TOTAL |
575530.100 |
576163.400 |
512428.700 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
171273.800 |
150585.100 |
136152.800 |
|
|
Capital work-in-progress |
280491.400 |
220753.100 |
149531.300 |
|
|
|
|
|
|
|
|
INVESTMENT |
6849.400 |
6841.400 |
6688.300 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
137423.700
|
113027.900
|
90274.600
|
|
|
Sundry Debtors |
47613.200
|
41302.700
|
34939.000
|
|
|
Cash & Bank Balances |
64157.000
|
174800.900
|
224363.700
|
|
|
Other Current Assets |
21670.000
|
24142.500
|
7803.400
|
|
|
Loans & Advances |
33891.700
|
29376.300
|
34160.900
|
|
Total
Current Assets |
304755.600
|
382650.300
|
391541.600 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
31904.200
|
31865.400
|
62138.800
|
|
|
Other Current Liabilities |
97713.600 |
94049.800
|
47045.000
|
|
|
Provisions |
58222.300
|
58751.300
|
62301.500
|
|
Total
Current Liabilities |
187840.100
|
184666.500
|
171485.300 |
|
|
Net Current Assets |
116915.500
|
197983.800
|
220056.300
|
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
575530.100 |
576163.400 |
512428.700 |
|
PROFIT & LOSS ACCOUNT
|
|
PARTICULARS |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
463417.900 |
433073.600 |
405513.800 |
|
|
|
Other Income |
16229.800 |
14858.800 |
27682.300 |
|
|
|
TOTAL (A) |
479647.700 |
447932.400 |
433196.100 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of materials consumed |
230208.200 |
202479.100 |
|
|
|
|
Purchase of stock in trade |
48.800 |
42.200 |
|
|
|
|
Changes in inventories of finished goods, work-in-progress |
(13685.100) |
(13526.700) |
|
|
|
|
Employee Benefits expense |
79320.500 |
76233.300 |
314483.300 |
|
|
|
Other expenses |
107073.700 |
93447.000 |
|
|
|
|
Adjustments pertaining to earlier years |
105.400 |
(1037.000) |
|
|
|
|
Exceptional Items |
2620.200 |
(1254.300) |
|
|
|
|
TOTAL (B) |
405691.700 |
356383.600 |
314483.300 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
73956.000 |
91548.800 |
118712.800 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
6777.000 |
4747.700 |
4020.100 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
67179.000 |
86801.100 |
114692.700 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
15670.300 |
14858.000 |
13372.400 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
51508.700 |
71943.100 |
101320.300 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
16081.500 |
22895.700 |
33776.600 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
35427.200 |
49047.400 |
67543.700 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
NA |
NA |
203450.500 |
|
|
|
|
|
|
|
|
|
Add |
Transferred
transfer from Bonds Redemption reserve |
NA |
NA |
0.000 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Amount Transferred to Bonds Redemption Reserve |
NA |
NA |
545.800 |
|
|
|
Amount Transferred to General Reserve |
NA |
NA |
6800.000 |
|
|
|
Interim Dividend |
NA |
NA |
6608.600 |
|
|
|
Proposed Dividend |
NA |
NA |
7021.700 |
|
|
|
Tax on Interim Dividend |
NA |
NA |
1109.000 |
|
|
|
Tax on Proposed Dividend |
NA |
NA |
1166.200 |
|
|
BALANCE CARRIED
TO THE B/S |
NA |
NA |
247742.900 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export Earnings |
12300.100 |
9804.600 |
7830.000 |
|
|
TOTAL EARNINGS |
12300.100 |
9804.600 |
7830.000 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
160738.000 |
126773.900 |
102633.100 |
|
|
|
Stores & Spares |
4251.300 |
4566.200 |
4085.700 |
|
|
|
Capital Goods |
12269.600 |
23520.200 |
33893.300 |
|
|
TOTAL IMPORTS |
177258.900 |
154860.300 |
140612.100 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
8.58 |
11.87 |
16.35 |
|
QUARTERLY RESULTS
|
PARTICULARS |
|
30.06.2012 |
30.09.2012 |
|
|
|
1st
Quarter |
2nd
Quarter |
|
Net Sales |
|
107775.000 |
108202.200 |
|
Total Expenditure |
|
95191.600 |
97109.000 |
|
PBIDT (Excl OI) |
|
12583.400 |
11093.200 |
|
Other Income |
|
2784.500 |
2254.900 |
|
Operating Profit |
|
15367.900 |
13348.100 |
|
Interest |
|
1248.800 |
1861.500 |
|
Exceptional Items |
|
0.000 |
418.400 |
|
PBDT |
|
14119.100 |
11905.000 |
|
Depreciation |
|
4018.300 |
4026.300 |
|
Profit Before Tax |
|
10100.800 |
7878.700 |
|
Tax |
|
3136.700 |
2447.600 |
|
Provisions and contingencies |
|
0.000 |
0.000 |
|
Profit After Tax |
|
6964.100 |
5431.100 |
|
Extraordinary Items |
|
0.000 |
0.000 |
|
Prior Period Expenses |
|
0.000 |
0.000 |
|
Other Adjustments |
|
0.000 |
0.000 |
|
Net Profit |
|
6964.100 |
5431.100 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
PAT / Total Income |
(%) |
7.39
|
10.95
|
16.66
|
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
11.11
|
16.61
|
24.99
|
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
10.82
|
13.49
|
19.20
|
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.13
|
0.19
|
0.30
|
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
0.88
|
1.01
|
1.05
|
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.62
|
2.07
|
2.28
|
LOCAL AGENCY FURTHER INFORMATION
|
Sr. No. |
Check List by Info Agents |
Available in Report (Yes
/ No) |
|
1] |
Year of Establishment |
Yes |
|
2] |
Locality of the firm |
Yes |
|
3] |
Constitutions of the firm |
Yes |
|
4] |
Premises details |
No |
|
5] |
Type of Business |
Yes |
|
6] |
Line of Business |
Yes |
|
7] |
Promoter's background |
No |
|
8] |
No. of employees |
Yes |
|
9] |
Name of person contacted |
No |
|
10] |
Designation of contact person |
No |
|
11] |
Turnover of firm for last three years |
Yes |
|
12] |
Profitability for last three years |
Yes |
|
13] |
Reasons for variation <> 20% |
----- |
|
14] |
Estimation for coming financial year |
No |
|
15] |
Capital in the business |
Yes |
|
16] |
Details of sister concerns |
Yes |
|
17] |
Major suppliers |
No |
|
18] |
Major customers |
No |
|
19] |
Payments terms |
No |
|
20] |
Export / Import details (if applicable) |
No |
|
21] |
Market information |
----- |
|
22] |
Litigations that the firm / promoter
involved in |
----- |
|
23] |
Banking Details |
Yes |
|
24] |
Banking facility details |
Yes |
|
25] |
Conduct of the banking account |
----- |
|
26] |
Buyer visit details |
----- |
|
27] |
Financials, if provided |
Yes |
|
28] |
Incorporation details, if applicable |
Yes |
|
29] |
Last accounts filed at ROC |
Yes |
|
30] |
Major Shareholders, if available |
No |
|
31] |
Date of Birth of
Proprietor/Partner/Director, if available |
No |
|
32] |
PAN of Proprietor/Partner/Director, if
available |
No |
|
33] |
Voter ID No of Proprietor/Partner/Director,
if available |
No |
|
34] |
External Agency Rating, if available |
Yes |
FINANCIAL REVIEW
The Company set a
new record by achieving the highest ever sales turnover of Rs.503480.000
Millions during 2011-12, a growth of 7% over previous year. The Company earned Profit
before Tax of Rs.51508.700 Millions and Profit after Tax of Rs.35427.200
Millions for the year 2011-12. The profit of the Company for the year 2011-12
was affected adversely, mainly due to adverse impact of higher prices of inputs
with the average price of imported Hard Coking Coal going up to US $ 288/T
(FOB) in FY’12 as compared to US $ 213/T (FOB) in corresponding period of last
year (CPLY). Another key factor affecting the profitability was the impact of
foreign exchange variation to the tune of about Rs.9000.000 Millions during the
year due to the US $ appreciating from a level of Rs.44.68 as on 31.3.2011 to
Rs.50.88 as on 31.3.2012. However, the adverse impact on profitability was
partially offset by several initiatives taken by the Company.
The Company
continued its thrust on optimum utilisation of funds by better fund management.
This included replacement of high cost short term loans with low cost debts,
timely repayment of loans including interest, strategic parking of surplus
funds with scheduled banks, actions for future fund raising, etc. to meet
growth objectives. Further, the Company hedged the foreign currency risk on
short-term Buyer’s Credit and External Commercial Borrowings depending upon
market conditions. The Company had liquid assets of Rs.59000.000 Millions as on
31st March, 2012 invested in short term deposits with scheduled banks against
borrowings of Rs.171070.000 Millions as on 31st March, 2012. The debt equity
ratio of the Company reduced to 0.41:1 as on 31st March, 2012 from 0.52:1 as on
31st March, 2011 mainly on account of decrease in borrowings during the year.
The net worth of the Company improved from Rs.370690.000 Millions as on 31st
March, 2011 to Rs.398110.000 Millions as on 31st March, 2012. During the year
2011-12, the capital expenditure incurred was Rs.110210.000 Millions, which was
financed by a mix of internal resources (including proceeds from maturity of
deposits) and borrowings from the market.
The Company paid
interim dividend @ 12% of the paid-up equity share capital during the year. The
Board of Directors has further recommended a final dividend @ 8% subject to
approval of the shareholders, thus making the total dividend @ 20% of the paid
up equity share capital for the year 2011-12. A sum of Rs.2750.000 Millions has
been transferred to the General Reserves during the year (previous year
Rs.5000.000 Millions).
PRODUCTION REVIEW
In the year
2011-12, the Company Plants took various initiatives to deal with the impending
challenges by optimizing operations, better value addition in downstream units,
taking measures to reduce coke consumption by enhancing alternate fuels like
Coal Dust Injection (CDI) in blast furnaces, etc. Record CDI of about 51
kg/tonne of Hot Metal (thm) was achieved during 2011-12 as against 34 kg/thm in
last year. The company, in its endeavour to become energy and cost efficient in
the year 2011-12, increased production of crude steel through continuous
casting route and achieved production of 9.4 million tones with a growth of 1%
over corresponding period of last year. Production of hot metal at 14.1 million
tonnes, crude steel at 13.4 million tones and saleable steel at 12.4 million
tonnes was 102%, 104% and 112% of the rated capacity respectively. Lower
availability of Coke Ovens at BSP, DSP and BSL and resultant Coke Oven gas
shortage, however, affected production during the year adversely.
The Company
produced value added products to the tune of 4.83 million tonnes thus
increasing the share of value-added products in its product basket to around 39
per cent in the current year. The Company has taken various measures to improve
processes, including marketability of products through improved packaging.
Higher production of special quality and value added products resulted in
further improvement of the product-mix. Several new products were developed
which have significant demand, ready market, and good contribution margin. Some
of the major new products developed to meet the customers’ requirement and enhance
market share are End Forged Thick Web Asymmetric Rail for Indian Railways,
Atmospheric corrosion resistance steel plates in JIS 3114 SMA 490BWN for
manufacture of bogie frame by BEML for use in Delhi Metro Project, ASTM A 537
class 1 plates with impact test in transverse direction for petro chemical
industry, SAIL-TMT Fe 550 EQR/IS 1786 Fe 550 D – High Strength Earth Quake
Resistance Quality Bars for construction of tall towers, BSEN 10025-2 S
275J2+N-Moderate strength with low temperature impact toughness for railway
passenger bogie, DIN EN 10028-3: P355 NL1 - Weldable fine grain Pressure Vessel
Plates for manufacturing of light wagon, 5mm thick 2 Pie Grade Steel Plates for
defense application, etc. A large number of innovations were also carried out
in Plants for process improvements and cost competitiveness.
An exhaustive
Master Plan for R&D has been prepared aiming at integrating R&D
activities towards business and operational goals of the Company. The
implementation of this Master Plan; besides giving a competitive advantage to
company by improving efficiencies, reducing costs, meeting market demands and
upgrading current steel technologies; will also help in gradually increasing
R&D expenditure to a level of 1% of sales turnover, which is an international
benchmark.
R&D Master
Plan will have positive impact on the existing operations through
implementation of centralised and decentralised projects. Centralised projects
consist of High Impact Projects (HIP) and Technology Mission Projects (TMP). The
projects which are of common interest of all integrated steel Plants viz. coal
and coke beneficiation, pelletisation, environmental projects etc. will come in
the category of HIP. Development/acquisition of radically new technologies
which are of strategic importance for company viz. thin strip casting and
inline rolling, CRGO etc. will be pursued through TM Projects. Under the
decentralized category, all the Plants/Units of company will have Centre of
Excellence (CoE) in selected areas/products. Centre of Excellence projects will
mainly focus on augmenting product volume and product attribute. Nine Units of
company have selected 14 nos. of projects in different areas with the aim to be
the Centre of Excellence in the particular field.
Champions of the projects,
who are the key drivers, and Research Councils (RC), the approving authority of
CoE projects, are already in place. In order to facilitate faster communication
and sharing of information, a dedicated web portal in respect of R&D Master
Plan has already been launched on SAIL Net.
RAW MATERIALS
During 2011-12,
total requirement of iron ore was met from captive sources. The Company’s
captive iron ore mines produced about 22.35 million tonnes. However, in case of
coking coal, around 25% requirement was met from indigenous sources and balance
through imports. During 2011-12, production in captive collieries of the
Company was about 0.64 million tonnes. In case of fluxes, around 1.15 million
tonnes of limestone and 0.95 million tonnes of dolomite was produced resulting
in total production of 2.10 million tonnes fluxes from captive sources. For
thermal coal, the Company depends entirely on purchases from Coal India Limited
(CIL) except small quantity produced from captive mines. To develop a state-of-art
mine at Chiria, the Company is in the process of compliance of Stage I forest
clearance conditions. The Company has deposited the Net Present Value of the
forest land and has acquired the certificate required under the Forest Rights
Act, 2006. During 2011-12, the Company got the final environment clearance for
the Dhobil Lease of the Manoharpur Iron Ore Mines, Chiria.
During the year,
Ministry of Mines, Government of India reserved 140 ha of area having iron ore
reserves of 11 million tonnes in NEB range in Bellary District of Karnataka for
undertaking prospecting / mining operations. Further, Government of Rajasthan
has forwarded the proposal for grant of iron ore mining lease covering an area
of 871.38 ha in Bhilwara District of Rajasthan in favour of the Company to
Ministry of Mines, Government of India.
S&T Mining
Company Private Limited a Joint Venture Company of SAIL and Tata Steel Limited,
is making efforts to develop Bhutgoria mine of BCCL. The mine is estimated to
produce 0.36 Mtpa coking coal at full capacity which will be shared between
SAIL and Tata Steel. The Joint Venture Company is also making efforts for
establishment of standalone coal washery of 1.8 Mtpa at Bhelatand.
The Company is
also making attempts for obtaining allocation of coking coal and thermal coal
blocks under Government dispensation route for captive mining to enhance
indigenous coal availability.
SALES AND
MARKETING REVIEW
The Company
achieved a total sales volume of 11.8 million tones during FY’11-12. Exports
during the year at 0.33 million tonnes were maintained at previous year’s
level. Major categories where growth was recorded in home sales included: HR
Coils - 7.1%, Plates>20mm - 4.7%, Heavy Structural’s - 3% and Tin Plates -
10.8%. New der this scheme, LOIs were issued to 476 rural dealers during
2011-12. Process for more such appointments is under progress. The Company
expanded its dealer network by 517 numbers (including rural dealers) during the
year. As on 1st April, 2012, the Company has a wide network of 3138 dealers
spread over 629 districts of the country.
AWARDS AND
ACCOLADES
The excellent
performance of Company as well as that of employees won laurels and
appreciation from several quarters during the year 2011-12. Some of the Awards
won by the Company are mentioned below:
· The Company has been conferred with “MoU Excellence Award” for the year 2010-11 for the 9th consecutive year. Chairman, company received the Award from Hon’ble Prime Minister on 31st January, 2012.
· Company bagged 11 out of 33 Prime Minister’s Shram Awards conferred in the country to both public and private sector organizations in July’11. In terms of no. of employees, 59% of the total awardees in the country were from Company.
· 14 out of total 28 Vishwakarma Rashtriya Puraskar given in the country were bagged by SAIL employees in 2011. In terms of number of employees, 62% (73 Award winner out of 117) were from company family.
· 10 teams involving 63 SAIL employees participated in International Convention on Quality Circle 2011 held at Yokohama, Japan in September, 2011. 7 teams won Excellent and 3 won Distinguished QC Award, which was the highest for any single organsiation.
· 57 teams from company Plants/Units participated in National Convention on Quality Concepts-2011 held at Hyderabad in December, 2011. 33 teams won Par Excellence, 2 teams won Excellent and 3 teams won Distinguished Award.
·
SCOPE Meritorious Award–2010-11 for “Corporate
Governance” has been conferred upon company. Chairman company received the
award from Her Excellency Smt. Pratibha Devisingh Patil, the then President of
India, on 13th April’2012 at Vigyan Bhawan in New Delhi.
· 13 Awards (6 winners and 7 runner up) out of total 123 “National Safety Awards-2009” announced by Ministry of Labour and Employment.
· “SCOPE Meritorious Award for Environment Excellence and Sustainable Development” for the Year 2009-10. Chairman received the Award from the then President of India, Her Excellency Smt. Pratibha Devisingh Patil on 11th April, 2011.
· Indian Institution of Industrial Engineering’s “Performance Excellence Awards - 2010” and received a Gold plaque with certificate of excellence. The Awards were presented by Hon’ble Minister of Goa on 16th May, 2011.
· “Golden Peacock Environment Management Award 2011” in recognition of initiatives and achievements in the field of environment management. Chairman received the Award from Mr. P. Chidambaram, Hon’ble Union Minster for Home Affairs, Govt. of India on 24th June, 2011.
· Prestigious ‘Randstad Award -2011’ under ‘Manufacturing Industries’ category. Director (Personnel) received the award from Dr. Bimal Jalan, former RBI Governor on 29th June, 2011.
· “Dainik Bhaskar India Pride Gold Award-2011” in the category “Metals and Minerals and Trade including Mining, for Central PSUs”. Chairman received the Award from Dr. Montek Singh Ahluwalia, Dy. Chairman, Planning Commission, GOI, on 21st October, 2011.
· ‘IEI Industry Excellence Award 2011’.Chairman received the Award on 16th December, 2011 at Bangalore during the Inaugural Session of the 26th Indian Engineering Congress.
· In promoting use of Rajbhasha, Company’s efforts have been recognized in the form of 1st prize at Town Level by TOLIC for Best Official Language implementation by Govt. of India.
· The Company has been awarded with the Skoch Award for Financial inclusion under the category of “Women Empowerment” in recognition of multifold initiatives for inclusive growth. Chairman, company received the Award from Mr. C. Rangarajan, ex-Governor RBI on 5th January, 2012.
In addition to
above, comapny Plants/Units have also excelled in various areas and have won
Awards for excellent performance; salient ones are listed as under:
BHILAI STEEL PLANT
(BSP)
“Golden Peacock Eco Innovation Award – 2011” from
World Environment Foundation, New Delhi.
“Golden Peacock HR Excellence Award for the Year
2011” from Institute of Directors, New Delhi.
Prime Minister’s Trophy for the Best Integrated
Plant in India for the Year 2009-10.
“Greentech HR Excellence Award – 2011” under the
award category “Employee Services” from Greentech Foundation.
DURGAPUR STEEL
PLANT (DSP)
“Greentech Safety Award (Gold) – 2009” in Metals
and Mining Sector from Greentech Foundation, New Delhi on 29th April, 2011.
“Indian Achiever’s Award – 2010” on Corporate
Leadership from Indian Achievers Forum, New Delhi.
“Greentech Environment Excellence Award (Gold) -
2010” in Metals and Mining Category for environmental preservation from
Greentech Foundation, New Delhi.
“Greentech CSR Award (Gold)-2010” in Metals and
Mining Category by Greentech Foundation, New Delhi on 19th October, 2011.
“Golden Peacock National Quality Award-2011”. The
Award has been conferred by the Institute of Directors.
ROURKELA STEEL
PLANT (RSP)
“Rajbhasha Gaurav Samman” from the Bhartiya
Rajbhasha Vikas Sansthaan, Dehradun for its outstanding contribution in
implementing Rajbhasha. The Award was conferred during the Akhil Bharatiya
Rajbhasha Sangosthi held at Madurai from 12th to 14th October, 2011.
“Greentech Environment Excellence (Gold) Award” in
the Environment Management front. The Award was given during the 12th Annual
Greentech Environment and CSR Global Conference, 2011 at Srinagar, Jammu and
Kashmir on 20th October, 2011.
MANAGEMENT
DISCUSSION AND ANALYSIS REPORT
INDUSTRY STRUCTURE
AND DEVELOPMENTS
World Economic
Environment
IMF, in its April
2012 update, has projected a World output growth of 3.5% for 2012 against a
growth of 3.9% during 2011. However, projected growth of 3.9% for 2013
indicates a mild recovery. Slight recovery in the major advanced economies,
coupled with the solid growth in most emerging and developing economies
presents a positive outlook for the Global economy on the whole.
While US economy
appears to be on recovery path with a growth of 1.7% in 2011 and projected
growth rates of 2% and 2.3% for 2012 and 2013 respectively, the Euro Zone
continues to be an area of concern. Its projected growth for 2012 is -0.3%
against a growth of 1.5% during 2011. The projection for 2013 is also for a
flat growth at 0.7%. In the Euro Zone, Greece which had contracted by 6.9% in
2011, is projected to contract by another 4.7% in 2012, before starting recovery
in 2013 along with Portugal and Spain.
Growth in the
advanced economies will be slow, projected at 1.4% for 2012 and 1.9% for 2013,
primarily because of the ongoing problems in Europe.
As per IMF, the
emerging and developing economies would also experience a lower growth of 5.6%
into 2012 against a growth of 6.2% in 2011. In developing Asia, China which had
grown at 9.2% in 2011 is expected to slow down to 8% in 2012 before recovering
to 8.5% in 2013.
Given the overall
dampening in economic activity, the trade growth is expected to slow down for
both developed as well as developing world.
Risk in 2012 is in
the form of continued hardening of oil prices. China and India, which together account
for around 80% of the incremental oil demand, would continue to push the demand
given the pace of their economic expansion. Further, any geo-political
uncertainty could trigger a sharp increase in oil prices.
World Steel
Scenario
The Global Steel
Industry is going through a rough phase with demand declining and the major
steel economies like USA and Europe running into oversupply. The World crude
steel production in 2011 stood at 1518 million tonnes, growing at 6.2% over
2010, with China contributing as high as 52% to the incremental production. The
growth rate however, was considerably lower as compared to 16% in 2010.
The Global steel
demand during 2012 is expected to grow by 3.6% to 1422 Million Tonnes,
moderating slightly as compared to a 5.6% growth in 2011. It is expected to
grow further by 4.5% to around 1486 million tonnes in 2013, as per WSA
forecasts.
Demand in major
steel producing nations, viz. Japan and Europe is projected to decrease in 2012
as compared to the demand in 2011. In the US, demand is forecast to grow by
5.7% in 2012 and 5.6% in 2013. China’s growth in steel demand in 2012 and 2013
is expected to moderate to 4.0% following 6.2% growth in 2011. The continuing
slowdown of Chinese steel demand is mainly driven by the Chinese Government’s
efforts to restructure the economy. However, part of China’s projected slower
growth is offset by improvement in other emerging markets and the recovery in
US.
India is expected
to resume its high growth trend after a sluggish performance in 2011. In 2012,
India’s steel use is forecast to grow by 6.9% to reach 72.5 MT and is projected
to grow further by 9.4% in 2013, driven by increased infrastructure investment
and higher pace of urbanisation.
WSA forecast
suggests that in 2013, the emerging and developing economies will account for
73% of World steel demand.
Indian Economic
Scenario
The GDP growth of
the Indian economy was estimated at 6.5% for the Fiscal 2011-12. Reduction in
gross fixed capital formation and slow down in industrial production have been
the cause of concern. No change inthe growth rate is expected in the coming
fiscal, with RBI projecting a growth of 6.5% for 2012-13.
The Union Budget
has announced a number of measures to boost the investment climate, with
special focus on infrastructure and manufacturing sectors. For the Steel
Industry, the key measures are in the form of increasing custom duty on flat
carbon steel products from the level of 5% to 7.5%. This along with measures to
bring back industrial growth should allow for accommodation of additional
supply on capacities likely to be commissioned in 2012-13.
The announcements
with regard to reduction in customs duty on machinery imports for mining and
mineral sector, specially for iron ore beneficiation and pelletisation, will
lead to reduction of overall capital cost.
Indian Steel
Scenario
India maintained
its ranking as the 4th largest steel producer in the World with a production of
71.3 million tonnes in 2011, registering a growth rate of 4.4% over 2010, as
per WSA.
According to JPC
estimates, domestic finished steel consumption posted a growth of 6.8% during
2011-12 to 70.92 Million Tonnes. The World Steel Association has projected a
growth of 6.9% for steel consumption for India during 2012, which is higher than
the growth in steel consumption projected for China (4%). In 2013, the growth
rate is forecast to accelerate to 9.4%.
A growth rate of
8-9% in the next few years is expected to be sustained mainly by factors such
as the 1 trillion USD investment envisaged for the infrastructure sector in the
12th Five Year Plan, greater emphasis on increasing growth rate of the
manufacturing sector, higher rates of urbanization, rising middle class
population and tapping the potential of the rural market. Also, in terms of per
capita consumption of finished steel, India at 57 kg lags behind the world
average of 214.7 kg, indicating a huge potential for growth.
In terms of
imports and exports, India has become a net importer of steel since 2007-08,
with the net imports at 3 million tonnes during 2011-12. An important reason
for the high level of imports has been the domestic
non-availability or limited availability of sophisticated/ specialized steel
products.
REVIEW OF
FINANCIAL PERFORMANCE
FINANCIAL OVERVIEW
OF SAIL
With the Indian
Economy reeling under the collateral impact of a sovereign debt crisis in
Europe and frequent increases in domestic interest rates to rein in inflation
this Fiscal, the growth rate of real consumption of domestic steel in the
current Fiscal also witnessed a slow down as compared to last year. Company
achieved the saleable steel production of 12.4 Million Tonne representing 112%
of capacity utilisation. Sales volume of saleable steel decreased by 3% at
11.42 Million Tonne as against 11.72 Million Tonne in 2010-11.
FINANCIAL
PERFORMANCE
|
Particulars |
2010-2011 (Rs. In Millions) |
% increase(+)/ decrease(-) over Previous year |
|
Sales Turnover |
503480.000 |
7% |
|
PBDIT Before
Exceptional Items |
76580.000 |
(15.2)% |
|
Profit Before
Tax (PBT) |
51510.000 |
(28.4)% |
|
Profit After Tax
(PAT) |
35430.000 |
(27.7)% |
Company achieved the turnover of Rs.503480.000 Millions
which was higher by 7% as compared to previous year, mainly due to increase in average
net sales realisation of saleable steel during 2011-12. The profit of the
Company for the year 2011-12 was affected adversely, mainly due to adverse
impact of higher prices of inputs with the average price of imported Hard
Coking coal going up to US $ 288/T (FOB) in FY’12 as compared to US $ 213/T
(FOB) in corresponding period of last year (CPLY). Another key factor affecting
the profitability was the impact of foreign exchange variation to the tune of
about Rs.9000.000
Millions during the year due to the US dollar appreciating from a level of Rs.44.68 as on 31.3.2011
to Rs.50.88
as on 31.3.2012. However, the adverse impact on profitability was partially
offset by the initiatives taken by the Company such as increase in net sales
realisation of saleable steel, interest earned on term deposits and higher
value added steel production. The profit after tax of Rs.35430.000 Millions was
lower by Rs.13620.000
Millions over last year (Rs.49050.000 Millions).
UNAUDITED FINANCIAL RESULTS FOR THE QUARTER
ENDED 30 SEPTEMBER, 2012
(RS. IN MILLIONS)
|
Particulars
|
Quarter ended |
Half Year Ended |
|
|
|
30th September 2012 (Unaudited) |
30th June 2012 (Unaudited) |
30th September 2012 (Unaudited) |
|
(a)
Net Sales / Income from Operations |
|
|
|
|
i)
Gross Sales |
119757.200 |
119124.200 |
238881.400 |
|
ii)
Less : Excise Duty |
13125.200 |
12716.900 |
25842.100 |
|
Sub
Total (a) (i-ii) |
106632.000 |
106407.300 |
213039.300 |
|
(b)
Other Operating Income |
1570.200 |
1367.700 |
2937.900 |
|
Sub
Total 1 (a) + (b) |
108202.200 |
107775.000 |
215977.200 |
|
Expenditure |
|
|
|
|
a)
Changes in Inventories of Finished Goods, Stock-in-Trade and Work in Progress |
(11208.800) |
(13073.100) |
(24281.900) |
|
b)
Cost of Materials Consumed |
57333.700 |
56415.700 |
113749.400 |
|
c)
Purchase of Stock in Trade |
8.000 |
11.200 |
19.200 |
|
d)
Employee Benefits Expense |
20898.300 |
19924.800 |
40823.100 |
|
e)
Power & Fuel |
12739.300 |
12239.600 |
24978.900 |
|
f)
Depreciation |
4206.300 |
4018.300 |
8044.600 |
|
g)
Other Expenditure |
17338.500 |
17104.000 |
34442.500 |
|
Sub
Total 2 (a) to (g) |
101135.300 |
96640.500 |
197775.800 |
|
Profit from Operations before Other
Income, Finance Cost and Exceptional Items ( 1-2) |
7066.900 |
11134.500 |
18201.400 |
|
Other
Income |
|
|
|
|
i)
Interest Earned |
2103.100 |
2072.900 |
4176.000 |
|
ii)
Other Income |
151.800 |
711.600 |
863.400 |
|
Sub
Total (i+ii) |
2254.900 |
2784.500 |
5039.400 |
|
Profit
before Finance Cost and Exceptional Items ( 3+4) |
9321.800 |
13919.000 |
23240.800 |
|
Finance
Cost |
1861.500 |
1248.800 |
3110.300 |
|
Profit
after Finance Cost but before Exceptional Items ( 5-6) |
7460.300 |
12670.200 |
20130.500 |
|
Exceptional
items |
|
|
|
|
i) Foreign
Exchange Loss (-)/ Gain(+) (Refer Note No. vi) |
418.400 |
(2569.400) |
(2151.000) |
|
ii)
Write Back of Entry Tax Liability |
0.000 |
0.000 |
0.000 |
|
Profit
from Ordinary Activities before Tax ( 7+8) |
7878.700 |
10100.800 |
17979.500 |
|
Tax
Expense |
|
|
|
|
(a)
Current Tax |
1990.900 |
2634.500 |
4625.400 |
|
(b)
Deferrred Tax Liability / Assets ( - ) |
458.100 |
502.200 |
960.300 |
|
(c)
Earlier Years |
(1.400) |
0.000 |
(1.400) |
|
Sub-Total
( a to c ) |
2447.600 |
3136.700 |
5584.300 |
|
Net
Profit from Ordinary Activities after Tax (
9-10 ) |
5431.100 |
6964.100 |
12395.200 |
|
Extraordinary
Items (net of Tax Expense Rs. Nil) |
0.000 |
0.000 |
0.000 |
|
Net
Profit for the Period (11-12) |
5431.100 |
6964.100 |
12395.200 |
|
Paid
up Equity Share Capital ( Face value : Rs. 10 per share ) |
41305.300 |
41305.300 |
41305.300 |
|
Reserves
(Excluding Revaluation Reserve ) as per Balance Sheet of Previous Accounting
Year |
-- |
-- |
-- |
|
Basic
and Diluted Earnings per Share before and after Extraordinary Items ( Not
Annualised ) |
1.31 |
1.69 |
3.00 |
|
Debt Service Coverage Ratio (Number of
times) |
-- |
-- |
1.89 |
|
Interest Service Coverage Ratio (Number of
times) |
-- |
-- |
3.07 |
|
Aggregate of public share
holding |
|
|
|
|
- Number of shares |
585338209 |
585323509 |
585338209 |
|
- Percentage of share holding |
14.17% |
14.17% |
14.17% |
|
|
|
|
|
|
Promoters and Promoter group shareholding |
|
|
|
|
(a) Pledged / Encumbered |
|
|
|
|
- Number of Shares |
-- |
-- |
-- |
|
- Percentage of shares (as a %
of the total |
-- |
-- |
-- |
|
- Percentage of shares (as a %
of the total share capital of the company) |
-- |
-- |
-- |
|
|
|
|
|
|
(b) Non-Encumbered |
|
|
|
|
- Number of Shares |
3544690285 |
3544690285 |
3544690285 |
|
- Percentage of shares (as a %
of the total shareholding of the promoter and promoter group) |
100% |
100% |
100% |
|
- Percentage of shares (as a %
of the total share capital of the company) |
85.82% |
85.82% |
85.82% |
NOTES
|
PARTICULARS |
3 months
ended 30th September, 2012 |
|
INVESTOR COMPLAINTS |
|
|
Pending at the beginning of the Quarter |
0 |
|
Received during the Quarter |
7 |
|
Disposed off during the Quarter |
7 |
|
Remaining Unresolved at the end of the
Quarter |
0 |
NOTE:
The above results have been reviewed by the Audit Committee and taken on
record by the Board of Directors in their Meeting held on 8th November, 2012.
The above results have been reviewed by the Statutory Auditors, as
required under Clause 41 of the Listing Agreement.
Net Sales include sales to Government Agencies recognised on provisional
contract prices during the Half Year ended 30th September 2012: Rs.22213.6
million (corresponding Half Year of previous year: Rs.19141.6 million) and upto
30th September, 2012: Rs.166734.7 million (upto the corresponding Half Year of
previous year : Rs.130615.4 million).
Pending final decision by the Hon’ble Supreme Court of India on levy of
Entry Tax in Uttar Pradesh, the Entry Tax demand of Rs.734.3 million upto 30th
September, 2012, under dispute, has been treated as contingent liability.
Due to unusual and steep depreciation in the value of the Rupee against
US $ during the current Half Year, the foreign exchange fluctuation loss on
short term foreign currency loans of Rs.2151.000 millions for the current Half
Year (corresponding Half Year of previous year - Rs.5203.700 millions) has been
considered as an Exceptional Item’ by the Company.
In accordance with Companies (Accounting Standards) Amendment Rules,
2009, relating to Accounting Standard – 11, notified on 31st March 2009 and
amended from time to time, the foreign exchange fluctuation loss on long-term
foreign currency loans of Rs.248.1 million (net debit) for the current Half
Year [corresponding Half Year of previous year- Rs.1632.6 million (net debit)],
has been adjusted in the carrying cost of the Fixed Assets/Capital
Work-in-progress. Also, as per Government’s Circular No.25/2012 dated 9th
August, 2012, exchange differences, arising on settlement/translation of
foreign currency loans to the extent regarded as an adjustment to interest
cost, have been adjusted in the cost of related assets, resulting in higher
profit for the current quarter/ half year by Rs.8.7 million and higher fixed
assets of Rs.8.7 million.
Formulas used for computation of coverage ratios: Debt Service Coverage
Ratio = Earnings before interest, exceptional items and tax/principal and
interest repayment of long terms loans; and Interest Service Coverage Ratio =
Earnings before interest, exceptional items and tax/interest including
transferred to Capital Work in Progress.
The figures of previous periods have been re-grouped, wherever
necessary, so as to conform to the current Quarter/Half Year’s classification.
CONTINGENT
LIABILITIES
|
Particulars |
31.03.2012 |
31.03.2011 |
|
|
(Rs. In Millions) |
|
|
|
|
|
|
I] Claims
against the Company pending appellate/judicial decisions : |
|
|
|
a) Excise Duty |
19254.700 |
19479.700 |
|
b) Sales Tax on
inter-state stock transfers from plants to stockyards*. |
7619.100 |
8363.100 |
|
c) Other sales
tax matters |
9929.400 |
2827.300 |
|
d) Income Tax |
5186.800 |
2565.600 |
|
e) Other duties,
cess and levies |
7164.200 |
4281.900 |
|
f) Civil matters
** |
2878.400 |
2667.700 |
|
g) Miscellaneous
** |
3659.100 |
3000.100 |
|
* No liability is expected to arise, as sales tax has been paid on
eventual sales. ** includes claims of Rs.241.400 Millions, against which there are
counter-claims of Rs.184.100 Million |
||
|
|
|
|
|
II] Other claims against the Company not acknowledged as debt: |
|
|
|
a) Sales Tax |
103.800 |
105.200 |
|
b) Duties, cess
and levies |
1154.700 |
147.300 |
|
c) Civil Matters |
222.000 |
145.800 |
|
d) Miscellaneous
$ |
8755.700 |
5256.700 |
|
$ includes claims
of Rs.731.600 Million against which there are counter-claims of Rs.624.200
Millions. |
||
|
|
|
|
|
Disputed income
tax/service tax/other demand on joint venture company for which company may
be contingently liable under the joint venture agreement |
361.900 |
1478.500 |
|
|
|
|
|
Bills drawn on
custom ers and discounted with banks. |
1109.500 |
105.300 |
|
|
|
|
|
Price escalation
claims by contractors/suppliers and claims by certain employees, extent whereof is not
ascertainable |
-- |
-- |
FIXED
ASSETS:
· Land (freehold and leasehold)
· Buildings
· Plant and machinery
· Furniture, fittings
· Vehicles
· Miscellaneous Articles
· Roads, Bridges and Culverts
· Water Supply and Sewerage
· EDP Equipments
· Railway Lines and Sidings
WEBSITE DETAILS
COMPANY PROFILE:
Subject is the steel-making company in India. It is a fully integrated iron and steel maker, producing both basic and special steels for domestic construction, engineering, power, railway, automotive and defence industries and for sale in export markets. Company is also among the five Maharatnas of the country's Central Public Sector Enterprises.
Company manufactures and sells a broad range of steel products, including hot and cold rolled sheets and coils, galvanised sheets, electrical sheets, structural’s, railway products, plates, bars and rods, stainless steel and other alloy steels. Company produces iron and steel at five integrated plants and three special steel plants, located principally in the eastern and central regions of India and situated close to domestic sources of raw materials, including the Company's iron ore, limestone and dolomite mines. The company has the distinction of being India’s second largest producer of iron ore and of having the country’s second largest mines network. Company’s a competitive edge in terms of captive availability of iron ore, limestone, and dolomite which are inputs for steel making.
Company’s wide range of long and flat steel products are much in demand in the domestic as well as the international market. This vital responsibility is carried out by company’s own Central Marketing Organisation (CMO) that transacts business through its network of 37 Branch Sales Offices spread across the four regions, 25 Departmental Warehouses, 42 Consignment Agents and 27 Customer Contact Offices. CMO’s domestic marketing effort is supplemented by its ever widening network of rural dealers who meet the demands of the smallest customers in the remotest corners of the country. With the total number of dealers over 2000, company’s wide marketing spread ensures availability of quality steel in virtually all the districts of the country.
Company’s International Trade Division (ITD), in New Delhi- an ISO 9001:2000 accredited unit of CMO, undertakes exports of Mild Steel products and Pig Iron from SAIL’s five integrated steel plants.
With technical and managerial expertise and know-how in steel making gained over four decades, company’s Consultancy Division (SAILCON) at New Delhi offers services and consultancy to clients world-wide.
Company has a well-equipped Research and Development Centre for Iron and Steel (RDCIS) at Ranchi which helps to produce quality steel and develop new technologies for the steel industry. Besides, company has its own in-house Centre for Engineering and Technology (CET), Management Training Institute (MTI) and Safety Organisation at Ranchi. The captive mines are under the control of the Raw Materials Division in Kolkata. The Environment Management Division and Growth Division of company operate from their headquarters in Kolkata. Almost all the plants and major units are ISO Certified.
MAJOR UNITS
Integrated Steel Plants
· Bhilai Steel Plant (BSP) in Chhattisgarh
· Durgapur Steel Plant (DSP) in West Bengal
· Rourkela Steel Plant (RSP) in Orissa
· Bokaro Steel Plant (BSL) in Jharkhand
· IISCO Steel Plant (ISP) in West Bengal
Special Steel Plants
· Alloy Steels Plants (ASP) in West Bengal
· Salem Steel Plant (SSP) in Tamil Nadu
· Visvesvaraya Iron and Steel Plant (VISL) in Karnataka
Ferro Alloy Plant
· Chandrapur Ferro Alloy Plant
SUBSIDIARY
· SAIL Refractory Company Limited
JOINT VENTURES
NTPC SAIL Power Company Private Limited (NSPCL): A 50:50 joint venture between company and National Thermal Power Corporation Limited (NTPC Limited); manages SAIL’s captive power plants at Rourkela, Durgapur and Bhilai with a combined capacity of 814 megawatts (MW).
Bokaro Power Supply Company Private Limited (BPSCL): This 50:50 joint venture between SAIL and the Damodar Valley Corporation (DVC) is managing the 302-MW power generating station and 660 tonnes per hour steam generation facilities at Bokaro Steel Plant.
Mjunction Services Limited: A 50:50 joint venture between SAIL and Tata Steel; promotes e-commerce activities in steel and related areas. Its newly added services include e-assets sales, events and conferences, coal sales and logistics, publications, etc.
SAIL-Bansal Service Centre Limited: A joint venture with BMW Industries Limited, on 40:60 basis for a service centre at Bokaro with the objective of adding value to steel.
Bhilai JP Cement Limited: A joint venture company with Jaiprakash Associates Limited, on 26:74 basis to set up a 2.2 million tonne (MT) slag-based cement plant at Bhilai.
Bokaro JP Cement Limited: Another joint venture company with Jaiprakash Associates Limited, on 26:74 basis to set up a 2.1 MT slag-based cement plant at Bokaro.
SAIL & MOIL Ferro Alloys (Private) Limited: A joint venture company with Manganese Ore (India) Limited, on 50:50 basis to produce ferro-manganese and silico-manganese required in production of steel.
S & T Mining Company Private Limited: A 50:50 joint venture company with Tata Steel for joint acquisition and development of mineral deposits; carrying out mining of minerals including exploration, development, mining and beneficiation of identified coking coal blocks.
International Coal Ventures Private Limited: A joint venture company/SPV promoted by five central PSUs, viz. SAIL, CIL, RINL, NMDC and NTPC (with respectively 28.7%, 28.7%, 14.3%, 14.3% and 14.3% shareholding) aiming to acquire stake in coal mines/blocks/companies overseas for securing coking and thermal coal supplies.
SAIL SCI Shipping Private Limited: A 50:50
joint venture with Shipping Corporation of India for provision of various
shipping and related services to company for importing of coking coal and other
bulk materials and other shipping-related business.
SAIL RITES Bengal Wagon Industry Private Limited: A 50:50 joint venture with RITES to manufacture, sell, market, distribute and export railway wagons, including high-end specialised wagons, wagon prototypes, fabricated components/parts of railway vehicles, rehabilitation of industrial locomotives, etc., for the domestic market.
SAIL SCL Limited: A 50:50 JV with Government of Kerala where SAIL has management control to revive the existing facilities at Steel Complex Limited Calicut and also to set up develop and manage a TMT rolling mill of 65,000 MT capacity along with balancing facilities and auxilliaries.
OWNERSHIP AND MANAGEMENT
The Government of India owns about 86% of company’s equity and retains
voting control of the Company. However, company by virtue of its ‘Maharatna’
status, enjoys significant operational and financial autonomy
BACKGROUND AND HISTORY
Company traces its
origin to the formative years of an emerging nation - India. After independence
the builders of modern India worked with a vision - to lay the infrastructure
for rapid industrialization of the country. The steel sector was to propel the
economic growth. Hindustan Steel Private Limited was set up on January 19,
1954.
EXPANDING HORIZON (1959-1973)
Hindustan Steel (HSL) was initially designed to manage only one plant that was
coming up at Rourkela. For Bhilai and Durgapur Steel Plants, the preliminary
work was done by the Iron and Steel Ministry. From April 1957, the supervision
and control of these two steel plants were also transferred to Hindustan Steel.
The registered office was originally in New Delhi. It moved to Calcutta in July
1956, and ultimately to Ranchi in December 1959.
The 1 MT phases of Bhilai and Rourkela Steel Plants were completed by the end
of December 1961. The 1 MT phase of Durgapur Steel Plant was completed in
January 1962 after commissioning of the Wheel and Axle plant. The crude steel
production of HSL went up from .158 MT (1959-60) to 1.6 MT. A new steel
company, Bokaro Steel Limited, was incorporated in January 1964 to construct
and operate the steel plant at Bokaro.The second phase of Bhilai Steel Plant
was completed in September 1967 after commissioning of the Wire Rod Mill. The
last unit of the 1.8 MT phase of Rourkela - the Tandem Mill - was commissioned
in February 1968, and the 1.6 MT stage of Durgapur Steel Plant was completed in
August 1969 after commissioning of the Furnace in SMS. Thus, with the
completion of the 2.5 MT stage at Bhilai, 1.8 MT at Rourkela and 1.6 MT at
Durgapur, the total crude steel production capacity of HSL was raised to 3.7 MT
in 1968-69 and subsequently to 4MT in 1972-73.
HOLDING
COMPANY
The Ministry of Steel and Mines drafted a policy statement to evolve a new
model for managing industry. The policy statement was presented to the
Parliament on December 2, 1972. On this basis the concept of creating a holding
company to manage inputs and outputs under one umbrella was mooted. This led to
the formation of Steel Authority of India Limited. The company, incorporated on
January 24, 1973 with an authorized capital of Rs. 20000.000 Millions, was made
responsible for managing five integrated steel plants at Bhilai, Bokaro,
Durgapur, Rourkela and Burnpur, the Alloy Steel Plant and the Salem Steel
Plant. In 1978 company was restructured as an operating company.
Company has been instrumental in laying a sound infrastructure for the
industrial development of the country. Besides, it has immensely contributed to
the development of technical and managerial expertise. It has triggered the
secondary and tertiary waves of economic growth by continuously providing the
inputs for the consuming industry.
PRESS RELEASE
SAIL PRODUCTION UP 7 PER CENT IN Q2
New Delhi, 01 October 2012
SAIL recorded a growth of 7 % in hot metal production in the July-September’2012 over corresponding period last year (CPLY), with a production of 3.6 million tonnes (MT) in Q2FY13. Growth in crude steel and saleable steel production was 5 % and 4 %, with production of 3.39 MT and 3.17 MT in Q2FY13 respectively. There was 6 % growth in hot metal production and 4% growth in production of crude steel as well as saleable steel in September’2012, over the same month last year. Blast Furnace productivity showed substantial increase of 8% in Q2 over CPLY.
In H-1 (April-September’12) also, 3 % growth was registered in production of
both hot metal and crude steel, over CPLY. Improved techno-economic
parameters in H-1 of current fiscal supported the growth trend with BF
productivity, specific energy consumption and coke rate registering
improvements of 4%, 3% and 2% respectively.
The production growth is in tune with the momentum that the ongoing Modernization and Expansion Plan of SAIL has attained, as it reaches the advanced stages of completion. The plan not only envisages substantial growth in production volumes in a phased manner but also producing new variety and range of products to cater to new market segments.
SAIL TARGETS CAPITAL EXPENDITURE OF
RS.120000.000 MILLIONS DURING FY’13
New Delhi, 21
September 2012
Shareholders approve provision of ‘Buyback of shares’: at AGM
“SAIL has taken various initiatives in optimizing operations, better value addition in downstream units, reducing coke consumption by enhancing alternate fuels like Coal Dust Injection in blast furnaces etc”, said Mr C.S. Verma, Chairman of Maharatna Steel Authority of India Limited (SAIL), at the company’s 40th Annual General Meeting held here today. Notwithstanding the short term dampeners in the Indian and the world economy, he expressed confidence in the growth of the Indian steel industry driven by the increased infrastructure investment and higher pace of urbanisation. “In terms of per capita consumption of finished steel, India at 57 kg lags behind the world average of 214.7 kg, indicating a huge potential for growth”, he said.
SAIL has planned a capex of Rs.120000.000 Million for FY ’13 after incurring a capital expenditure of Rs.110210.000 Millions in FY’12. Apprising shareholders on the status of modernisation and expansion, Mr. Verma informed that the completed new facilities include new Coke Oven Battery No.11 and Wire Rod Mill at IISCO Steel Plant, Sinter Plant No.3 and Coke Oven Battery No.6 at Rourkela Steel Plant and 700 tpd Air Separation Unit at Oxygen Plant-2 at Bhilai Steel Plant. SAIL’s modernisation and expansion program being implemented at an expenditure of around Rs.720000.000 Millions, besides targeting higher production, also addresses the need for eliminating technological obsolescence, achieving energy savings, enriching product-mix, reducing pollution and developing mines and collieries. Further, interacting with the shareholders Mr. Verma informed that the majority of the facilities of the on-going phase of modernisation and expansion of SAIL are likely to be completed in the current fiscal.
In the area of enhancing power capacity from present 1000 MW to nearly 1800 MW, NSPCL (a 50:50 JV of SAIL and NTPC) is preparing a Feasibility Report for setting up 2x250 MW Power Plant at Bhilai and 1x250 MW Power Plant at Rourkela.
In the AGM, a special resolution was passed wherein SAIL was authorised to purchase, acquire or hold its own shares or other specified securities as per the applicable statutes. Payment of 20% of total dividend for the year FY’12 was also approved in the meet.
To maintain its current dominance in the domestic market and to meet future challenges, Mr. Verma stated that “SAIL is working on a long term strategic plan ‘Vision 2020’ which will steer the company towards meeting its strategic objectives of achieving higher profitability through organic and inorganic growth and infusion of state of the art environmental friendly technologies”. Mr. Verma apprised SAIL shareholders that the company is determined to meet its enhanced requirement of iron ore from captive sources, by augmenting production from existing mines and by developing new mines at Rowghat in Chhattisgarh and Chiria in Jharkhand.
Besides achieving a record sales turnover of Rs 503480.000 Millions during 2011-12, a growth of 7% over previous year, SAIL also achieved production of hot metal, crude steel and saleable steel at 14.1, 13.4 and 12.4 million tonnes respectively, registering a corresponding capacity utilisation of 102%, 104% and 112%. Keeping up this trend, cumulative production of crude steel at SAIL was 5.65 million tonnes in April-August’12, up by 3 % over CPLY.
Speaking about the company’s efforts towards integrating R&D with its business and operational goals, Chairman SAIL stated that the R&D spend would be increased to the international benchmark of 1% of the sales turnover. Already, implementation of several initiatives under SAIL’s R&D Master Plan has been started.
Mr. Verma expressed satisfaction over the best ever achievements made during 2011-12 in respect of reduction in Particulate Matter emission load from 2.3 kg/tcs in 2006-07 to 1.01 kg/tcs in the year 2011-12; Specific Water Consumption from 4.58 m3/tcs in 2006-07 to 3.86 m3/tcs in the year 2011-12 and Specific effluent discharge from SAIL Plants from 2.73 m3/tfs in 2006-07 to 2.26 m3/tfs in the year 2011-12. In fact, over the last 5 years, SAIL has witnessed reduction in particulate matter emission, specific water consumption and specific effluent discharge by an impressive 56%, 16% and 17% respectively. For the same period, SAIL also achieved an improvement of 18% in solid waste utilization.
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.55.69 |
|
|
1 |
Rs.89.20 |
|
Euro |
1 |
Rs.72.10 |
INFORMATION DETAILS
|
Report Prepared
by : |
NIT |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
8 |
|
OPERATING SCALE |
1~10 |
9 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
9 |
|
--PROFITABILIRY |
1~10 |
9 |
|
--LIQUIDITY |
1~10 |
9 |
|
--LEVERAGE |
1~10 |
8 |
|
--RESERVES |
1~10 |
9 |
|
--CREDIT LINES |
1~10 |
8 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
77 |
This score serves as a reference to assess SC’s credit risk and
to set the amount of credit to be extended. It is calculated from a composite
of weighted scores obtained from each of the major sections of this report. The
assessed factors and their relative weights (as indicated through %) are as
follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively below
average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
- |
NB |
New Business |
- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or
its officials.