MIRA INFORM REPORT
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Report Date : |
05.10.2012 |
IDENTIFICATION DETAILS
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Name : |
TATA STEEL LIMITED |
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Registered Office
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Country : |
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Financials (as
on) : |
31.03.2012 |
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Date of
Incorporation : |
26.08.1907 |
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Com. Reg. No.: |
11-000260 |
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Capital
Investment / Paid-up Capital : |
Rs.9712.145 millions |
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CIN No.: [Company Identification
No.] |
L27100MH1907PLC000260 |
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TAN No.: [Tax Deduction &
Collection Account No.] |
MUMT00249E MUMT10796C |
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PAN No.: [Permanent Account No.] |
AAACT2803M AAATT0188H |
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Legal Form : |
A Public Limited Liability company. The company’s Share are Listed on
the Stock Exchange. |
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Line of Business
: |
Manufacturers of Saleable Steel, Ferro Manganese, Charge Chrome,
Welded Steel Tubes, Cold Rolled Strips, Seamless Tubes, Carbon and Alloy
Steel Bearing Rings, Annular Forgings and Flanges, Metallurgical Machinery,
Ammonium Sulphate, Ordinary Cement, Fortland Blast Furnace Slag Cement, Alloy
Steel Ball Bearing Rings and Bearings. |
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No. of Employees
: |
81251 (Approximately) |
RATING & COMMENTS
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MIRA’s Rating : |
Aa (78) |
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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 2104800000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a well established and a reputed TATA Group company. The country’s premier industrial house. Available information indicates high financial responsibility of the company. Financial position of the company is sound. Payments are reported to be regular. The company can be considered good for normal business dealings at usual 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
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Country Name |
Previous Rating (31.03.2012) |
Current Rating (30.06.2012) |
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India |
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.
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Source
: CIA |
EXTERNAL AGENCY RATING
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Rating Agency Name |
CARE |
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Rating |
AA+ (Long term bank facilities) |
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Rating Explanation |
Having high degree of safety regarding timely servicing of financial
obligation it carry low credit risk. |
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Date |
April, 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 Office : |
Bombay House, 24 - Homi Mody Street, Fort, Mumbai - 400 001,
Maharashtra, India |
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Tel. No.: |
91-22-66658282 / 66657279 /
66657306 |
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Fax No.: |
91-22-66657724 / 66657725 / 66658113 |
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E-Mail : |
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Website : |
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Corporate Office : |
Design Call, 3rd Floor, General Office, Tata
Steel, |
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Websites: |
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Commercial Head Offices: |
Tata Centre, 43 Jawaharlal Nehru Road, Kolkata-700071, West Bengal, India |
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Tel. No.: |
91-33-22887051/ 9251 |
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Fax No.: |
91-33-22882079 |
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Sales Offices : |
Located at:
52, Jawaharlal Nehru Road, Kolkata-700071 Tel. No.: 91-33-22887051/ 9251 Fax. No.: 91-33-22882079 |
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Factory 1 : |
Company’s Steel Works and Tubes Division\ Jamshedpur, Jharkhand, India |
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Factory 2 : |
Bearings Division Kharagpur, West Bengal, India |
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Factory 3 : |
Ferro Manganese Plant Joda, Odisha, India |
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Factory 4 : |
Charge Chrome Plant Bamnipal, Odisha, India |
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Factory 5 : |
Cold Rolling Complex Tarapur, Maharashtra, India |
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Factory 6 : |
Mines, Collieries and Quarries States of Jharkhand, India Odisha and Karnataka India |
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Factory 7 : |
Wire Division
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Factory 8 : |
Agrico Plant Indore, Madhya Pradesh, India |
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Overseas Offices: |
Port Talbot, UK Scunthorpe, UK Rotherham, UK IJmuiden, Netherlands |
DIRECTORS
As on 31.03.2012
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Name : |
Mr. Ratan N. Tata |
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Designation : |
Chairman |
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Name : |
Mr. B. Muthuraman |
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Designation : |
Vice Chairman |
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Name : |
Mr. Nusli N. Wadia |
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Designation : |
Director |
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Name : |
Mr. Subodh Bhargava |
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Designation : |
Director |
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Name : |
Mr. Jacobus Schraven |
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Designation : |
Director |
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Name : |
Mr. Cyrus Mistry |
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Designation : |
Director |
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Name : |
Mr. Andrew Robb |
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Designation : |
Director |
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Name : |
Mr. S. M. Palia |
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Designation : |
Director |
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Name : |
Mr. Ishaat Hussain |
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Designation : |
Director |
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Name : |
Ms. Mallika Srinivasan |
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Designation : |
Director |
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Name : |
Mr. H. M. Nerurkar |
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Designation : |
Managing Director |
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Name : |
Dr. Karl-Ulrich Koehler |
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Designation : |
Managing Director and Chief Executive
Officer |
KEY EXECUTIVES
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Name : |
Mr. A. Anjeneyan |
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Designation : |
Company Secretary |
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Group Corporate
Functions |
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Name : |
Mr. Koushik Chatterjee |
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Designation : |
Group Chief Financial Officer |
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Name : |
Mr. Kees Gerretse |
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Designation : |
Group Director (Procurement) |
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Name : |
Dr. Debashish Bhattacharjee |
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Designation : |
Director (Research Development and
Technology) |
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Name : |
Mr. Shreekant Mokashi |
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Designation : |
Chief (Group Information Services) |
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Name : |
Mr. Andrew Page |
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Designation : |
Director (Health and Safety) |
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Name : |
Dr. Paul Brooks |
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Designation : |
Director (Environment) |
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Name : |
Mr. Sandip Biswas |
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Designation : |
Group Director (Corporate Finance and M
& A) |
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Senior
Management |
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Name : |
Mr. Anand Sen |
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Designation : |
Vice President (TQM and Shared Services)
TSL |
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Name : |
Dr. Henrik Adam |
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Designation : |
Chief Commercial Officer TSE |
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Name : |
Mr. Abanindra M. Misra |
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Designation : |
Vice President (Coke, Sinter and Iron and
IR) TSL |
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Name : |
Mr. Dook van der Boer |
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Designation : |
Strip MLE Hub Director, TSE |
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Name : |
Mr. Partha Sengupta |
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Designation : |
Vice President (Raw Materials) TSL |
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Name : |
Mr. N. K. Misra |
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Designation : |
Executive Director (Finance) TSE |
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Name : |
Mr. Tor Farquhar |
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Designation : |
Director (Human Resource) TSE |
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Name : |
Mr. Varun Jha |
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Designation : |
Vice President (Engineering and Chhattisgarh
Projects) TSL |
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Name : |
Mr. Jon Bolton |
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Designation : |
Long EU Hub Director, TSE |
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Name : |
Mr. T. V. Narendran |
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Designation : |
Vice President (Safety and Flat Products)
TSL |
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Name : |
Mr. Jon Ferriman |
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Designation : |
Strip UK Hub Director, TSE |
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Name : |
Mr. Hridayeshwar Jha |
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Designation : |
Vice President (Odisha Project) TSL |
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Name : |
Mr. Bimlendra Jha |
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Designation : |
Vice President (Long Products) TSL |
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Name : |
Mr. Alastair Aitken |
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Designation : |
Supply Chain Director, TSE |
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Name : |
Mr. Sanjeev Paul |
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Designation : |
Vice President (Corporate Services) TSL |
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Name : |
Mr. Theo Henrar |
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Designation : |
Director (Sales and Marketing) TSE |
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Name : |
Mr. P. Senthil Kumar |
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Designation : |
Chief Human Resource Officer |
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Name : |
Mr. Adriaan Vollebergh |
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Designation : |
Director (Commercial Improvement projects)
TSE |
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Name : |
Ms. Helen Matheson |
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Designation : |
Director (Legal) TSE |
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Name : |
Mr. V. S. N. Murty |
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Designation : |
Chief Financial Controller (Corporate) TSL |
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Name : |
Mr. Rod Jones |
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Designation : |
Managing Director Tata Consulting, TSE |
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Name : |
Mr. Arun Misra |
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Designation : |
Principal Executive Officer TSL |
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Name : |
Mr. Vivek Kamra |
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Designation : |
President and CEO NatSteel Holdings |
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Name : |
Mr. Peeyush Gupta |
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Designation : |
President and CEO Tata Steel Thailand |
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Name : |
Mr. A. Anjeneyan |
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Designation : |
Company Secretary and Chief of Compliance,
TSL |
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Name : |
Mr. Charudatta Deshpande |
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Designation : |
Chief, Corporate Affairs and Communications
TSL |
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Name : |
Mr. Sytske Seyffert |
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Designation : |
Director (Corporate Communications and
Public Affairs) TSE |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 30.06.2012
|
Category of Shareholders |
No. of Shares |
Percentage of
Holding |
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(A) Shareholding
of Promoter and Promoter Group |
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303482902 |
31.81 |
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1031460 |
0.11 |
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1031460 |
0.11 |
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304514362 |
31.92 |
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Total
shareholding of Promoter and Promoter Group (A) |
304514362 |
31.92 |
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(B) Public
Shareholding |
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38327039 |
4.02 |
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4399002 |
0.46 |
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121659 |
0.01 |
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235632082 |
24.70 |
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136550619 |
14.31 |
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38712 |
0.00 |
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35041 |
0.00 |
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3221 |
0.00 |
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450 |
0.00 |
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415069113 |
43.50 |
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30421150 |
3.19 |
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178268546 |
18.68 |
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25799824 |
2.70 |
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5625 |
0.00 |
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5625 |
0.00 |
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234495145 |
24.58 |
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Total Public
shareholding (B) |
649564258 |
68.08 |
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Total (A)+(B) |
954078620 |
100.00 |
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(C) Shares held by
Custodians and against which Depository Receipts have been issued |
0 |
0.00 |
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0 |
0.00 |
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17135830 |
0.00 |
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17135830 |
0.00 |
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Total
(A)+(B)+(C) |
971214450 |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturers of Saleable Steel, Ferro Manganese, Charge
Chrome, Welded Steel Tubes, Cold Rolled Strips, Seamless Tubes, Carbon and
Alloy Steel Bearing Rings, Annular Forgings and Flanges, Metallurgical Machinery,
Ammonium Sulphate, Ordinary Cement, Fortland Blast Furnace Slag Cement, Alloy
Steel Ball Bearing Rings and Bearings. |
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Products: |
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PRODUCTION STATUS 31.03.2011
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Particulars |
Unit |
Installed
Capacity |
Actual
Production |
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Crude Steel ( |
Tonnes |
68,00,000 |
68,55,424 |
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Wire Rods (Tarapur, |
Tonnes |
3,00,000 |
2,96,566 |
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Wires (Borivali, Tarapur; Maharashtra), ( |
Tonnes |
2,13,900 |
1,91,128 |
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Ferro Manganese and Silico Manganese (Joda, Odisha) |
Tonnes |
50,000 |
49,500 |
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Charge Chrome (Bamnipal, Odisha) |
Tonnes |
50,000 |
45,054 |
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Welded Steel Tubes ( |
Tonnes |
2,88,000 |
2,81,623 |
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Metallurgical Machinery ( |
Tonnes |
-- |
13,515 |
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Bearings (Kharagpur, |
Numbers |
2,50,00,000 |
3,30,85,368 |
Notes :
·
As certified by the Managing Director and accepted
by the Auditors.
·
Including production for works use and for
conversion by the third parties into finished goods for sale.
·
The actual production of Saleable Steel during the
year is 66,90,996 tonnes
including semi-finished steel produced 15,33,806
tonnes and steel transferred for manufacture into Tubes/C.R. Strips at
the Company’s Tubes Division 3,90,690 tonnes
/ steel transferred for manufacture of Cold Rolled Coils at the Company’s Cold
Rolling Mill Division (West) 2,29,701 tonnes
and steel transferred for manufacture of Wire Rods 2,91,234 tonnes and wires 2,70,163
tonnes at the Company’s Wire Rod
Mill (West) division.
·
Including Tubes used in manufacture of Tubular
Steel Structures and Scaffoldings.
·
There is no separate installed capacity.
GENERAL INFORMATION
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No. of Employees : |
81251 (Approximately) |
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Bankers : |
·
State Bank of ·
Central Bank of ·
Standard Chartered Bank, 4,Netaji Subhas Road,
Kolkata – 700 001, West ·
Industrial Development Bank of ·
Citibank International P.L.C. |
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Facilities : |
Additional
information: (1) Details of
outstanding secured borrowings are as follows: (a) Represents loan
from Joint Plant Committee – Steel Development Fund which includes funded
interest 3161.300 Millions (31.03.2011: Rs.2800.600 Millions). It is repayable
in 16 equal semi-annual installments after completion of 4 years from the
date of receipt of the last tranche. It is secured by
mortgages, ranking pari passu inter se, on all present and future fixed
assets, excluding land and buildings mortgaged in favour of Government of
India for constructing a hostel for trainees at Jamshedpur and setting up a
dispensary and a clinic at collieries, land and buildings, plant and
machinery and movables of the Tubes division and the Bearings division
mortgaged in favour of the financial institutions and banks, assets of the
Ferro Alloys Plant at Bamnipal mortgaged in favour of
State Bank of India and assets of Cold Rolling Complex (West) at Tarapur and
a floating charge on other properties and assets (excluding investments) of
the Company, subject to the prior floating charge in favour of banks under
item A (b). The Company has
filed a writ petition before the High Court at Kolkata in February 2006
claiming waiver of the outstanding loan and interest and refund of the
balance lying with Steel Development Fund and the matter is sub-judice. Loan from the
Joint Plant Committee-Steel Development Fund includes Rs.14118.400 Millions (31.03.2011: Rs. 13174.900 Millions) representing
repayments and interest on earlier loans for which applications of funding
are awaiting sanction is not secured
by charge on movable assets of the Company. (b) Loan from
banks repayable on demand are secured by hypothecation of stocks, stores and
book debts, ranking in priority to the floating charge under item A (a). (2) Terms of
repayment of outstanding unsecured borrowings are as follows: (a)
Bonds/Debentures (i) 10.25% p.a.
interest bearing 25,000 debentures of face value Rs. 10,00,000 each are
redeemable at par in 3 equal annual installments commencing from 6th January,
2029. (ii) 10.25% p.a.
interest bearing 5,000 debentures of face value Rs. 10,00,000 each are
redeemable at par in 3 equal annual installments commencing from 22nd
November, 2028. (iii) 11.00%
p.a. interest bearing 15,000 debentures of face value Rs. 10,00,000 each are
redeemable at par on 19th May, 2019. (iv) 10.40% p.a.
interest bearing 6,509 debentures of face value Rs. 10,00,000 each are
redeemable at par on 15th May, 2019. (v) 10.20% p.a.
interest bearing 6,200 debentures of face value Rs. 10,00,000 each are
redeemable on 7th May, 2015. (vi) 12.50% p.a.
interest bearing 12,500 debentures of face value Rs. 10,00,000 each are
redeemable in 3 equal annual installments commencing from 19th November,
2014. (b) Term loans
from banks (i) GBP 100
million equivalent to Rs.8150.500 Millions
(31.03.2011: GBP 100 million equivalent
to Rs.7170.200 Millions) loan
is repayable on 4th April, 2015. (ii) U SD 335
million equivalent to Rs. 17044.800 Millions
(31.03.2011: USD 335 million
equivalent to Rs. 1,493.93
Millions) loan is repayable on 10th June, 2015. (iii) Euro 5.82
million equivalent to Rs. 395.200 Millions
(31.03.2011: Euro 6.30 million
equivalent to Rs. 43.02
Millions) loan is repayable in 12 equal semi-annual installments; the
next installment is due on 2nd May, 2012. (iv) Euro 32.85
million equivalent to Rs. 2231.100 Millions
(31.03.2011: Euro 35.20 million
equivalent to Rs. 237.92
Millions) loan is repayable in 14 equal semi-annual installments; the
next installment is due on 2nd July, 2012. (v) Euro 54.04
million equivalent to Rs. 3670.300 Millions
(31.03.2011: Euro 10.58 million
equivalent to Rs. 670.800
Millions) loan is repayable in 20 equal semi-annual installments
commencing from 6th July, 2012. (vi) Euro 183.01
million equivalent to Rs. 12430.300 Millions
(31.03.2011: Euro Nil million
equivalent to Rs. Nil
Millions) loan is repayable in 20 equal semi-annual installments
commencing from 31st October, 2012. (vii) JPY 71,598
million equivalent to Rs. 44376.400 Millions
(31.03.2011: JPY 89497.500 million
equivalent to Rs. 4,8194.400
Millions) syndicated loan is repayable in 4 equal semi-annual
installments; the next installment is due on 11th April,2012. (viii) Indian
rupee loan amounting Rs. 1,500.00 Millions
(31.03.2011: Rs. 2,5000.000 Millions) is repayable
on 28th July, 2013. (ix) Indian rupee
loan amounting Rs. 5000.000 Millions
(31.03.2011: Rs. Nil) is repayable in 9 semi-annual
installments commencing from 30th April, 2013. (c) Term loans
from financial institutions and others (i) Indian rupee
loan amounting Rs. 6500.000 Millions
(31.03.2011: Rs. 650.00 Millions) is repayable on
16th June, 2019. (ii) Indian
rupee loan amounting Rs. 1990.000 Millions
(31.03.2011: Rs. 1990.000 Millions) is repayable on
30th June, 2016. (d) Deferred
payment liabilities amounting Rs. 38.000
Millions (31.03.2011: Rs.
38.000 Millions) is payable
in 10 annual installments (first 5 installments are of Rs. 0.900 Millions
each and next 5 installments are of Rs. 6.700 Millions each) commencing from
29th December, 2014. |
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Banking
Relations : |
-- |
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Auditors : |
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Name : |
Messrs Deloittee Haskins and Sells Chartered Accountants |
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A. Subsidiaries: |
i) Adityapur Toll Bridge Company Limited, India ii) Centennial Steel Company Ltd, India iii) Gopalpur Special Economic Zone Limited, India iv) Jamshedpur Utilities & Services Company Limited, India 1. Haldia Water Management Limited, India 2. Naba Diganta Water Management Limited, India 3. SEZ Adityapur Limited, India v) Kalimati Investment Company Limited, India 1. Bangla Steel & Mining Co. Limited, Bangladesh vi) Lanka Special Steels Limited, Sri Lanka vii) NatSteel Asia Pte. Limited, Singapore 1. Tata Steel Asia (Hong Kong) Limited, Hongkong S.A.R. 2. Tata Steel Resources Australia Pty. Limited, Australia viii) Sila Eastern Limited, Thailand ix) T S Alloys Limited, India x) Tata Incorporated, USA xi) Tata Korf Engineering Services Limited, India xii) Tata Metaliks Limited, India 1. Tata Metaliks Kubota Pipes Limited, India xiii) TRL Krosaki Refractories Limited, India 1. TRL Asia Private Limited, Singapore 2. TRL China Limited, China xiv) Tayo Rolls Limited India xv) Tata Steel (KZN) (Pty) Limited, South Africa xvi) Tata Steel Holdings Pte. Limited, Singapore 1. Tata Steel Global Holdings Pte Limited, Singapore I. O rchid Netherlands (No.1) B.V., Netherlands II. NatSteel Holdings Pte. Limited, Singapore 1. Best Bar Pty. Limited, Australia 2. Best Bar (Vic ) Pte. Limited, Australia 3. Burwill Trading Pte. Limited, Singapore 4. Easteel Construction Services Pte. Limited, Singapore 5. Easteel Services (M) Sdn. Bhd., Malaysia 6. Eastern Steel Fabricators Phillipines, Inc., Phillipines 7. Eastern Steel Services Pte. Limited, Singapore 8. Eastern Wire Pte. Limited, Singapore 9. Materials Recycling Pte. Limited, Singapore 10. NatSteel (Xiamen) Limited, China 11. NatSteel Asia (S) Pte. Limited, Singapore 12. NatSteel Australia Pty. Limited, Australia 13. NatSteel Equity IV Pte. Limited, Singapore 14. Natsteel Recycling Pte Limited, Singapore 15. NatSteel Trade International (Shanghai) Company Limited, China 16. NatSteel Trade International Pte. Limited, Singapore 17. NatSteel Vina Co. Limited, Vietnam 18. PT Materials Recycling Indonesia, Indonesia 19. The Siam Industrial Wire Company Limited, Thailand 20. Wuxi Jinyang Metal Products Co. Limited, China III. Tata Steel International (Singapore) Holdings Pte. Limited, Singapore 1. TSIA Holdings (Thailand) Limited, Thailand 2. Tata Steel International (Guangzhou) Limited, China 3. Tata Steel International (Shanghai) Limited, China 4. Tata Steel International (Malaysia) Sdn. Bhd., Malaysia 5. Tata Steel International (Thailand) Limited, Thailand 6. Tata Steel International (Singapore) Pte. Limited, Singapore 7. Tata Steel international (Asia) Limited, Hongkong S.A.R. 8. Tata Steel International (Hongkong) Limited , Hongkong S.A.R. IV. Tata Steel Europe Limited UK 1. Almana Steel Dubai (Jersey) Limited, Jersey 2. Apollo Metals Limited, USA 3. Ashorne Hill Management College, UK 4. Augusta Grundstucks GmbH, Germany 5. Automotive Laser Technologies Limited, UK 6. B S Pension Fund Trustee Limited, UK 7. Bailey Steels Limited, UK 8. Beheermaatschappij Industriele Produkten B.V., Netherlands 9. Belfin Beheermaatschappij B.V., Netherlands 10. Bell & Harwood Limited, UK 11. Blastmega Limited, UK 12. Blume Stahlservice GmbH, Germany 13. Blume Stahlservice Polska Sp.Z.O.O, Poland 14. Bore Samson Group Ltd, UK 15. Bore Steel Limited, UK 16. British Guide Rails Limited, UK 17. British Steel Corporation Ltd, UK 18. British Steel De Mexico S.A. de C.V., Mexico 19. British Steel Directors (Nominees) Limited, UK 20. British Steel Employee Share Ownership Trustees Limited, UK 21. British Steel Engineering Steels (Exports) Limited, UK 22. British Steel Holdings B.V.,
Netherlands 23. British Steel International B.V.,
Netherlands 24. British Steel Nederland International B.V., Netherlands 25. British Steel Samson Limited, UK 26. British Steel Service Centres Limited, UK 27. British Steel Tubes Exports Limited, UK 28. British Transformer Cores Limited,
UK 29. British Tubes Stockholding Limited, UK 30. Bs Quest Trustee Limited, UK 31. Bskh Corporate Services (UK) Limited, UK 32. Burgdorfer Grundstuecks GmbH, Germany 33. C V Benine, Netherlands 34. C Walker and Sons Limited, UK 35. Catnic GmbH, Germany 36. Catnic Limited, UK 37. Cbs Investissements SAS, France 38. Cladding and Decking (UK) Limited, UK 39. Cogent Power Inc., Canada 40. Cogent Power Inc., Mexico 41. Cogent Power Inc., USA 42. Cogent Power Limited, UK 43. Cold drawn Tubes Limited, UK 44. Color Steels Limited, UK 45. Corbeil Les Rives SCI, France 46. Corby (Northants) and District Water Co., UK 47. Cordor (Cand B) Limited, UK 48. Corus Aerospace Service Centre Suzhou Co Limited, China 49. Corus Aluminium Limited, UK 50. Corus Aluminium V erwaltungsgesellschaft Mbh, Germany 51. Corus Beteiligungs GmbH, Germany 52. Corus Brokers Limited, UK 53. Corus Building Systems Bulgaria AD, Bulgaria 54. Corus Building Systems N.V., Belgium 55. Corus Building Systems SAS, France 56. Corus Byggesystemer A/S, Denmark 57. Corus Byggsystem AB, Sweden 58. Corus Byggsystemer A/S, Norway 59. Corus CNBV Investments, UK 60. Corus Coatings Usa Inc., USA 61. Corus Cold drawn Tubes Limited, UK 62. Corus Consulting B.V. Netherlands 63. Corus Electrical Limited, UK 64. Corus Engineering Limited, UK 65. Corus Engineering Steels (UK) Limited, UK 66. Corus Engineering Steels Holdings Limited, UK 67. Corus Engineering Steels Limited, UK 68. Corus Engineering Steels Overseas Holdings Limited, UK 69. Corus Finance Limited, UK 70. Corus Group Limited, UK 71. Corus Holdings Ltd,. UK 72. Corus Holdings SA, France 73. Corus India Limited, India 74. Corus International (Overseas Holdings) Limited, UK 75. Corus International Bulgaria Limited, Bulgaria 76. Corus International Limited UK 77. Corus International Representacoes Do Brasil Ltda., Brazil 78. Corus International Romania SRL., Romania 79. Corus Investments Limited, UK 80. Corus Ireland Limited, Ireland 81. Corus Large Diameter Pipes Limited, UK 82. Corus Liaison Services (India) Limited, UK 83. Corus Management Limited UK 84. Corus Metal Iberica S.A, Spain 85. Corus Metals Limited, UK 86. Corus Multi-Metals Limited, UK 87. Corus Norge A/S, Norway 88. Corus Packaging Plus Norway AS, Norway 89. Corus Primary Aluminium B.V., Netherlands 90. Corus Properties (Germany) Limited, UK 91. Corus Property UK 92. Corus Quest Trustee Limited, UK 93. Corus Rail Limited, UK 94. Corus Republic Of Ireland Subsidiaries Pension Scheme Trustee
Limited, Ireland 95. Corus Service Center Milano Spa, Italy 96. Corus Service Centre Limited, N Ireland 97. Corus Sheet and Tube Inc,. USA 98. Corus Stainless Limited, UK 99. Corus Stainless UK Limited,UK 100. Corus Steel Limited, UK 101. Corus Steel Service STP LLC, Russia 102. Corus Trico Holdings Inc. USA 103. Corus Tubes Poland Spolka Z.O.O, Poland 104. Corus UK Healthcare Trustee Limited, UK 105. Corus Ukraine LLC, Ukraine 106. Cpn (85) Limited, UK 107. Crucible Insurance Company Limited, I of Man 108. Degels GmbH, Germany 109. Demka B.V., Netherlands 110. Dsrm Group Plc., UK 111. Ees Group Services Limited, UK 112. EES Nederland B.V., * Netherlands 113. Eric Olsson and Soner Forvaltnings AB, Sweden 114. Esmil B.V., Netherlands 115. Euro-Laminations Limited, UK 116. European Electrical Steels Limited ,* UK 117. Europressings Limited, UK 118. Firsteel Group Limited, UK 119. Firsteel Holdings Limited, UK 120. Firsteel Strip Mill Products Limited, UK 121. Fischer Profielen NV, * Belgium 122. Fischer Profil GmbH, Germany 123. Gamble Simms Metals Limited, Ireland 124. Grant Lyon Eagre Limited UK 125. H E Samson Limited, UK 126. Hadfields Holdings Limited, UK 127. Hammermega Limited, UK 128. Harrowmills Properties Limited, UK 129. Hille and Muller GmbH, Germany 130. Hille and Muller Usa Inc., USA 131. Holorib GmbH * Germany 132. Hoogovens (UK) Limited, UK 133. Hoogovens Aluminium UK Limited, UK 134. Hoogovens Finance B.V., Netherlands 135. Hoogovens Technical Services Mexico De S. De R.L. De C.V,. Mexico 136. Hoogovens Usa Inc., USA 137. Huizenbezit “Breesaap” B.V. ,Netherlands 138. Ickles Cottage Trust, UK 139. Immobilliere De Construction De Maubeuge Et Louvroil SAS, France 140. Industrial Steels Limited, UK 141. Inter Metal Distribution SAS, France 142. Kalzip Asia Pte Limited, Singapore 143. Kalzip GmbH, Germany 144. Kalzip GmbH, Austria 145. Kalzip Guanhzou Limited, China 146. Kalzip Inc, USA 147. Kalzip Italy SRL, Italy 148. Kalzip Limited, UK 149. Kalzip Spain S.L.U., Spain 150. Layde Steel S.L., Spain 151. Lister Tubes Limited, Ireland 152. London Works Steel Company Limited, UK 153. Midland Steel Supplies Limited, UK 154. Mistbury Investments Limited ,UK 155. Montana Bausysteme AG, Switzerlnd 156. Myriad Deutschland GmbH, Germany 157. Myriad Espana Sl, Spain 158. Myriad Nederland B.V., Netherlands 159. Myriad SA, France 160. Myriad United Kingdom Limited, UK 161. Namascor B.V., Netherlands 162. Nationwide Steelstock Limited, UK 163. Oostflank B.V., Netherlands 164. Orb Electrical Steels Limited, UK 165. Ore Carriers Limited, UK 166. Oremco Inc., USA 167. Plated Strip International Limited, UK 168. Precoat International Limited, UK 169. Precoat Limited UK 170. Rafferty-Brown Steel Co Inc Of Conn., USA 171. Richard Thomas And Baldwins 1978. Limited, New Zealand 172. Round Oak Steelworks Limited, UK 173. Runblast Limited ,UK 174. Runmega Limited, UK 175. S A B Profiel B.V., Netherlands 176. S A B Profil GmbH ,Germany 177. Sacra-Nord SAS, France 178. Scrap Processing Holding B.V., Netherlands 179. Seamless Tubes Limited, UK 180. Service Center Gelsenkirchen GmbH, Germany 181. Service Centre Maastricht B.V., Netherlands 182. SIA Corus Building Systems, Latvia 183. Simiop Investments Limited, UK 184. Simiop Limited, UK 185. Skruv Erik AB, Sweden 186. Societe Europeenne De Galvanisation (Segal) Sa, Belgium 187. Staalverwerking En Handel B.V., Netherlands 188. Stainless Velsen-Noord BV,_Netherlands 189. Steel StockHoldings Limited, UK 190. Steelstock Limited, UK 191. Stewarts and Lloyds Of Ireland Limited, Ireland 192. Stewarts And Lloyds (Overseas) Limited, UK 193. Stocksbridge Works Cottage Trust Limited, UK 194. Stuwadoorsbedrijf Velserkom B.V. ,Netherlands 195. Surahammar Bruks AB ,Sweden 196. Swinden Housing Association, UK 197. Tata Steel Belgium Packaging Steels N.V., Belgium 198. Tata Steel Belgium Services N.V., Belgium 199. Tata Steel Europe Distribution BV,_Netherlands 200. Tata Steel Europe Metals Trading BV,_Netherlands 201. Tata Steel France Batiment et Systemes SAS, France 202. Tata Steel France Rail SA, France 203. Tata Steel Germany GmbH, Germany 204. Tata Steel Hungary LLC Hungary 205. Tata Steel Ijmuiden BV_Netherlands 206. Tata Steel International (Americas) Holdings Inc USA 207. Tata Steel International (Americas) Inc USA 208. Tata Steel International (Australasia) Limited New Zealand 209. Tata Steel International (Benelux) BV_Netherlands 210. Tata Steel International (Canada) Holdings Inc, Canada 211. Tata Steel International (Czech Republic) S.R.O, Czech Republic 212. Tata Steel International (Denmark) A/S, Denmark 213. Tata Steel International (Finland) OY, Finland 214. Tata Steel International (France) SAS, France 215. Tata Steel International (Germany) GmbH, Germany 216. Tata Steel International Hellas SA, Greece 217. Tata Steel International (Italia) SRL, Italy 218. Tata Steel International (Middle East) FZ, UAE 219. Tata Steel International (Nigeria) Limited, Nigeria 220. Tata Steel International (North America) Limited, USA 221. Tata Steel International (Poland) sp Z.o.o., Poland 222. Tata Steel International (Schweiz) AG, Switzerland 223. Tata Steel International (Sweden) AB, Sweden 224. Tata Steel International (UK) Limited, UK 225. Tata Steel International (India) Limited, India 226. Tata Steel Istanbul Metal Sanayi ve Ticaret AS, Turkey 227. Tata Steel Logistics and Shipping BV, Netherlands 228. Tata Steel Nederland BV, Netherlands 229. Tata Steel Nederland Consulting and Technical Services BV,
Netherlands 230. Tata Steel Nederland Investment BV, Netherlands 231. Tata Steel Nederland Perfo BV,_Netherlands 232. Tata Steel Nederland Services BV, Netherlands 233. Tata Steel Nederland Star-Frame BV, Netherlands 234. Tata Steel Nederland Technology BV, Netherlands 235. Tata Steel Nederland Tubes BV, Netherlands 236. Tata Steel Netherlands Holdings B.V. Netherlands 237. Tata Steel UK Consulting Limited, UK 238. Tata Steel UK Holdings Limited, UK 239. Tata Steel UK Limited, UK 240. Tata Steel UK Rail Consultancy Limited, UK 241. Tata Steel Usa Inc,. USA 242. The Newport And South Wales Tube Company Limited, UK 243. The Stanton Housing Company Limited, UK 244. The Steel Company Of Ireland Limited, Ireland 245. The Templeborough Rolling Mills Limited, UK 246. Thomas Processing Company, USA 247. Thomas Steel Strip Corp., USA 248. Tinsley Trailers Limited, UK 249. Toronto Industrial Fabrications Limited, UK 250. Trierer Walzwerk GmbH, Germany 251. Tulip Netherlands (No.1) B.V., Netherlands 252. Tulip Netherlands (No.2) B.V., Netherlands 253. Tulip UK Holdings (No.2) Limited, UK 254. Tulip UK Holdings (No.3) Limited, UK 255. Tuscaloosa Steel Corporation, USA 256. U .E.S. Bright Bar Limited, UK 257. UK Steel Enterprise Limited ,UK 258. UKse Fund Managers (General Partner) Limited, UK 259. UKse Fund Managers Limited ,UK 260. U nitol SAS, France 261. V lietjonge BV, Netherlands 262. Walker Manufacturing And Investments Limited, UK 263. Walkersteelstock Ireland Limited Ireland 264. Walkersteelstock Limited, UK 265. Westwood Steel Services Limited, UK 266. Whitehead (Narrow Strip) Limited, UK V. Tata Steel Global Minerals Holdings Pte Limited, Singapore 1. Al Rimal Mining LLC ,Oman 2. Black Ginger 461 (Proprietary) Limited, South Africa 3. Kalimati Coal Company Pty. Limited, Australia 4. Sedibeng Iron Ore Pty. Limited, South Africa 5. Tata Steel Cote D’ Ivoire S.A, Ivory Coast 6. Tata Steel Minerals UK Limited, UK 7. Tata Steel Minerals Canada Limited, Canada VI. Tata Steel (Thailand) Public Company Limited Thailand 1. N.T.S. Steel Group Plc,. Thailand 2. The Siam Construction Steel Company Limited, Thailand 3. The Siam Iron And Steel (2001) Company Limited, Thailand II. Tata Steel Global Procurement Company Pte. Limited, Singapore 1. ProCo Issuer Pte. Limited, Singapore xvii) Tata Steel Processing And Distribution Limited, India xviii) TM International Logistics Limited, India 1. International Shipping Logistics FZE, UAE 2. TKM Global China Limited, China 3. TKM Global GmbH ,Germany 4. TKM Global Logistics Limited, India 5. TM Harbour Services Private Limited, India xix) Indian Steel and Wire Products Ltd,. India xx) The Tata Pigments Limited, India xxi) T M Mining Company Limited, India xxii) Jamshedpur Continuous Annealing and Processing Company Private Limited, India xxiii) The Tinplate Company of India Limited, India |
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B. Joint Ventures of: |
i) Tata Steel Limited 1. Bhubaneshwar Power Private Limited, India 2. Himalaya Steel Mill Services Private Limited, India 3. mjunction services limited, India 4. S and T Mining Company Private Limited, India 5. Tata BlueScope Steel Limited, India 6. Tata NYK Shipping Pte Limited, Singapore 7. The Dhamra Port Company Limited, India ii) Tata Steel Holdings Pte. Limited a) Tata Steel Global Holdings Pte Limited I. Tata Steel Europe Limited 1. Afon Tinplate Company Limited, UK 2. Air Products Llanwern Limited, UK 3. B V Ijzerleew, Netherlands 4. Bsr Pipeline Services Limited, UK 5. Caparo Merchant Bar Plc, UK 6. Corus Cogifer Switches And Crossings Limited, UK 7. Corus Kalpinis Simos Rom SRL., Romania 8. Danieli Corus Technical Services B.V., Netherlands 9. Hks Scrap Metals B.V., Netherlands 10. Ijzerhandel Geertsema Staal B.V., Netherlands 11. Industrial Rail Services Ijmond B.V., Netherlands 12. Laura Metaal Holding B.V., Netherlands 13. Norsk Stal AS Norway 14. Norsk Stal Tynnplater AS, Norway 15. Ravenscraig Limited, UK 16. Tata Elastron SA, Greece 17. Tata Elastron Steel Service Center SA, Greece 18. Tata Steel Ticaret AS, Turkey 19. Texturing Technology Limited, UK 20. Redcar Bulk Terminal Limited UK II. Tata Steel Global Minerals Holdings Pte. Limited 1. Rio Tinto Benga (Mauritius) Limited, Mauritius |
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C. Associate through: |
i) Kalimati Investment Company Ltd,. India 1. Rujuvalika Investments Limited ii) NatSteel Asia Pte. Limited 1. Steel Asia Development and Management Corp., Philippines 2. Steel Asia Industries Inc., Philippines 3. Steel Asia Manufacturing Corporation, Philippines iii) Tata Incorporated 1. Tkm Overseas Limited, India iv) TRL Krosaki Refractories Limited 1. Almora Magnesite Limited, India v) Tata Steel Limited 1. Indian Steel Rolling Mills Limited, India 2. Industrial Energy Limited, India 3. Jamipol Limited, India 4. Kalinga Aquatics Limited, India 5. Kumardhubi Fireclay and Silica Works Limited, India 6. Kumardhubi Metal Casting and Engineering Limited, India 7. Nicco Jubilee Park Limited, India 8. Strategic Energy Technology Systems Private Limited, India 9. Tata Construction and Projects Limited, India 10. Tata Sponge Iron Limited India 11. TRL Krosaki Refractories Limited,India 12. The Tinplate Company of India Limited, India 13. TRF Limited, India vi) Tata Steel Holdings Pte. Limited a) Tata Steel Global Holdings Pte Limited I. Tata Steel International (Singapore) Holdings Pte. Limited 1. European Profiles Malaysia (M) Sdn.Bhd., Malaysia II. Tata Steel Europe Limited 1. Ab Norskstal AS, Norway 2. Albi Profils SRL, France 3. Appleby Frodingham Cottage Trust Limited, UK 4. Combulex B.V., Netherlands 5. Cv Gasexpansie Ijmond, Netherlands 6. Danieli Corus Canada Inc., Canada 7. Danieli Corus Asia B.V., Netherlands 8. Danieli Corus B.V., Netherlands 9. Danieli Corus Braseq Ltda., Brazil 10. Danieli Corus Construction Services B.V. Netherlands 11. Danieli Corus Construction Services Usa Inc., USA 12. Danieli Corus Do Brasil Ltda., Brazil 13. Danieli Corus Inc., USA 14. Danieli Corus Services Usa Inc. USA 15. Danieli India (Private) Limited, India 16. European Profiles (Marketing) Sdn.Bhd., Malaysia 17. Galvpro LP., USA 18. Gietwalsonderhoudcombinatie B.V. ,Netherlands 19. Hoogovens Court Roll Service Technologies Vof: ,Netherlands 20. Hoogovens Gan Multimedia S.A. De C.V., Mexico 21. Isolation Du Sud SA, France 22. Issb Limited, UK 23. MDC Sublance Probe Technology, Shanghai 24. Regionale Ontwikkelingsmaatschappij V oor Het Noordzeekanaalgebied
N.V., Netherlands 25. Richard Lees Steel Decking Asia Snd. Bhd., Malaysia 26. Rsp Holding B.V., Netherlands 27. Schreiner Fleischer AS, Norway 28. Shanghai Bao Yi Beverage Can Making Company Limited, China 29. Sms Mevac UK Limited, UK 30. Thoresen and Thorvaldsen AS, Norway 31. Trico LLC, USA 32. Weirton/Hoogovens GP, USA 33. Wupperman Staal Nederland B.V., Netherlands III. Tata Steel Global Minerals Holdings Pte
Limited 1. Riversdale Mining Limited, Australia 2. New Millennium Iron Corporation, Canada vii) The Indian Steel and Wire Products Limited 1. Metal Corporation of India Limited, India |
|
D. Promoters holding together with its subsidiary
is more than 20% |
Tata Sons Limited |
CAPITAL STRUCTURE
As on 31.03.2012
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
1750000000 |
Ordinary Shares |
Rs.10/-each |
Rs.17500.000 millions |
|
350000000 |
"A" Ordinary Shares |
Rs.10/-each |
Rs.3500.000 millions |
|
25000000 |
Cumulative Redeemable Preference Shares |
Rs.100/-each |
Rs.2500.000 millions |
|
600000000 |
Cumulative Convertible Preference Shares |
Rs.100/-each |
Rs.60000.000 millions |
|
Total |
Rs.83500.000 millions |
||
Issued Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
972126020 |
Ordinary Shares |
Rs.10/-each |
Rs.9721.300 millions |
Subscribed and Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
971214450 |
Ordinary Shares |
Rs.10/-each |
Rs.9712.100 millions |
|
Add |
Amount paid up on 3,89,516 Ordinary Shares
forfeited |
|
Rs.2.000 millions |
|
|
Total |
|
Rs.97141.000 millions |
Additional information:
(1) The movement in subscribed and paid up share capital is set out
below:
|
Ordinary Shares of ` 10 each |
No. of shares |
Rs. in Millions |
|
At beginning of the year |
959214450 |
9592.100 |
|
Shares allotted during the year |
12000000(a) |
120.000 |
(a) 1,20,00,000
Ordinary Shares of face value of Rs.10 per share were allotted on 20th
January, 2012 to Tata Sons Limited on preferential basis on conversion of
warrants at a price of Rs.594 per share.
|
Object of the issue |
31.03.2012 |
|
|
|
Rs. in Millions |
Rs. in Millions |
|
Gross Proceeds
of the issue Utilisation of funds |
|
34770.000 |
|
Part finance the capital expenditure for
expansion of the Company's existing works at Jamshedpur |
18750.000 |
18750.000 |
|
Payment of
redemption amounts on maturity of certain redeemable non-convertible
debentures issued by the Company on a private placement basis |
10900.000 |
10900.000 |
|
General corporate purposes |
3903.000 |
- |
|
Issue related expenses |
1217.000 |
1022.600 |
|
Unutilised amount represented by: |
|
|
|
Investments in Mutual Funds |
4097.400 |
10142.700 |
|
Deposits with banks |
- |
24000.000 |
|
Bank balance |
- |
56.100 |
(iii) 146 Ordinary Shares of face value of
Rs. 10 per share allotted on
3rd March, 2011 at a premium of Rs. 290
per share to shareholders whose shares were kept in abeyance in the
Rights issue made in 2007.
(iv) 108 Ordinary Shares of face value of
Rs. 10 per share allotted on
3rd March, 2011 at a premium of Rs. 590
per share to holders of CCPS in the ratio of 6:1 on conversion whose
shares were kept in abeyance in the Rights
issue made in 2007.
(c) The balance
Ordinary Shares kept in abeyance are 307807
(31.03.2011: 3,07,807) in
respect of rights issue of 2007.
(2) Shareholders holding
more than 5 percent shares in the Company:
|
Name of
shareholders |
No. of Ordinary Shares |
% |
|
(a) Tata Sons
Limited |
288898245 |
29.75 |
|
(b) Life
Insurance Corporation of India Limited |
145709733 |
15.00 |
(3) Particulars of securities convertible into Ordinary Shares:
(a) In November
2009, the Company had issued 5,469.35 numbers of 4.5% Foreign Currency
Covertible Bonds (FCCBs) aggregating to USD 546.935 million. These represent
4,21,12,300 (31.03.2011: 4,19,60,304) underlying shares and are convertible at
any time on or after 31st December, 2009 and upto 11th November, 2014 by the
holders of such FCCBs at a conversion price of Rs. 602.1022 per share
(31.03.2011: Rs. 604.2832 per share) and at a fixed USD/INR conversion rate of
46.36.
(b) In September
2007, the Company had issued 3,820 numbers of 1% Convertible Alternative
Reference Securities (CARS) aggregating to USD 382 million. These represent
2,10,47,371 (31.03.2011: 2,10,15,711) underlying shares and are convertible at
any time on or after 4th September, 2011 and upto 3.00 p.m. on 6th August, 2012
at the option of the holders at a conversion price of Rs. 730.5188 per share
(31.03.2011: Rs. 731.6193 per share) and at a fixed USD/ INR conversion rate of
40.25.
Changes to premium
payable on account of exchange fluctuation is transferred to "Foreign
Currency Monetary Item Translation Difference Account" in accordance with
Companies (Accounting Standards) Amendment Rules 2009 pertaining to Accounting
Standard 11 (AS-11) notified by the Government of India on 31st March, 2009 (as
amended on 29th December, 2011). Such exchange fluctuation on the premium
payable is amotised over the balance period of CARS, by adjusting the same to
securities premium reserve. Accordingly, an amount of Rs. 252.200 Millions (net
of deferred tax Rs. 121.100 Millions) [2010-11: Rs. 20.700 Millions (net of
deferred tax Rs.35.700 Millions)] has been adjusted against securities premium
reserve on account of amortisation.
(3) (a) 3,867 Shares
(31.03.2011: 3,867) of face value of Rs. 10 per share represent the shares
underlying GDRs which were issued during 1994. Each GDR represents one
underlying Ordinary Share.
(b) 1,80,87,222
Shares (31.03.2011: 2,39,13,921) of face value of Rs.10 per share represent the
shares underlying GDRs which were issued during 2010. Each GDR represents one
underlying Ordinary Share.
(4) The rights,
powers and preferences relating to each class of share capital and the
qualifcations, limitations and restrictions thereof are contained in the
Memorandum and Articles of Association of the Company. The principle rights are
as follows:
A. ordinary Shares
of Rs. 10 each
The Company has
only one class of share capital namely Ordinary Shares having a face value of
Rs. 10 per share.
(a) In respect of
every Ordinary Share (whether fully paid or partly paid), voting right shall be
in the same proportion as the capital paid up on such Ordinary Share bears to
the total paid up ordinary capital of the Company.
(b) The dividend
proposed by the Board of Directors is subject to the approval of the
shareholders in the ensuing Annual General Meeting, except in case of interim
dividend.
(c) In the event
of liquidation, the shareholders of Ordinary Shares are eligible to receive the
remaining assets of the Company after distribution of all preferential amounts,
in proportion to their shareholdings.
b. 'A' ordinary
Shares of Rs. 10 each
(a) (i) The
holders of 'A' Ordinary Shares shall be entitled to such rights of voting
and/or dividend and such other rights as per the terms of the issue of such
shares, provided always that:
in the case where
a resolution is put to vote on a poll, such differential voting entitlement
(excluding fractions, if any) will be applicable to holders of 'A' Ordinary
Shares.
in the case where
a resolution is put to vote in the meeting and is to be decided on a show of
hands, the holders of 'A' Ordinary Shares shall be entitled to the same number
of votes as available to holders of Ordinary Shares.
(ii) The holders
of Ordinary Shares and the holders of 'A' Ordinary Shares shall vote as a
single class with respect to all matters submitted for voting by shareholders
of the Company and shall exercise such votes in proportion to the voting rights
attached to such Shares including in relation to any scheme under Sections 391
to 394 of the Act.
(b) The holders of
'A' Ordinary Shares shall be entitled to dividend on each 'A' Ordinary Share which
may be equal to or higher than the amount per Ordinary Share declared by the
Board for each Ordinary Share, and as may be specified at the time of the
issue. Different series of 'A' Ordinary Shares may carry different entitlements
to dividend to the extent permitted under applicable law and as prescribed
under the terms applicable to such issue.
C. Preference
Shares
The Company has
two classes of preference shares i.e. Cumulative Redeemable Preference Shares
(CRPS) of Rs.100 per share and Cumulative Convertible Preference Shares (CCPS)
of Rs. 100 per share.
(a) Such Shares
shall confer on the holders thereof, the right to a fixed preferential dividend
from the date of allotment, at a rate as may be determined by the Board at the
time of the issue, on the capital for the time being paid up or credited as
paid up thereon.
(b) Such Shares
shall rank for capital and dividend (including all dividend undeclared upto the
commencement of winding up) and for repayment of capital in a winding up, pari
passu inter se and in priority to the Ordinary Shares of the Company, but shall
not confer any further or other right to participate either in Profits or
assets. However, in case of CCPS, such preferential rights shall automatically
cease on conversion of these shares into Ordinary Shares.
(c) The holders of
such Shares shall have the right to receive all notices of general meetings of
the Company but shall not confer on the holders thereof the right to vote at
any meetings of the Company save to the extent and in the manner provided in
the Companies Act, 1956, or any re-enactment thereof.
(d) CCPS shall be
converted into Ordinary Shares as per the terms, determined by the Board at the
time of issue; as and when converted, such Ordinary Shares shall rank pari pasu
with the then existing Ordinary Shares of the Company in all respects.
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 |
9714.100 |
9594.100 |
8874.100 |
|
|
2] Share Warrants |
0.000 |
1782.000 |
0.000 |
|
|
3] Reserves and Surplus |
516499.500 |
458070.200 |
360743.900 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
526213.600 |
469446.300 |
369618.000 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
19154.700 |
20091.800 |
22593.200 |
|
|
2] Unsecured Loans |
195033.500 |
226390.000 |
229798.800 |
|
|
TOTAL BORROWING |
214188.200 |
246481.800 |
252392.000 |
|
|
DEFERRED TAX LIABILITIES |
9705.100 |
9368.000 |
8676.700 |
|
|
Provision for employees separation compensation |
- |
- |
9571.600 |
|
|
Foreign currency monetary item translation difference
account |
- |
- |
2069.500 |
|
|
HYBRID PERPETUAL SECURITIES |
22750.000 |
15000.000 |
0.000 |
|
|
TOTAL |
772856.900 |
7402961.000 |
642327.800 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
113662.600 |
118051.000 |
160060.300 |
|
|
Capital work-in-progress |
160584.900 |
56122.800 |
0.000 |
|
|
|
|
|
|
|
|
INVESTMENT |
502825.200 |
465649.400 |
449796.700 |
|
|
DEFERRED TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
FOREIGN CURRENCY MONETARY ITEM TRANSLATION DIFFERENCE ACCOUNT |
4049.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS and ADVANCES |
|
|
|
|
|
|
Inventories |
48589.900
|
39537.600 |
24539.900
|
|
|
Sundry Debtors |
9040.800
|
4240.200 |
4348.300
|
|
|
Cash and Bank Balances |
39469.900
|
41387.800 |
32341.400
|
|
|
Other Current Assets |
1249.400
|
1404.900 |
6237.600
|
|
|
Loans and Advances |
82438.900
|
169123.500 |
55038.900
|
|
Total
Current Assets |
180788.900
|
255694.000 |
122506.100 |
|
|
Less : CURRENT
LIABILITIES and PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
59732.300
|
44648.100 |
7728.500
|
|
|
Other Current Liabilities |
90146.000
|
66359.800 |
58841.600
|
|
|
Provisions |
39175.400
|
44213.200 |
23465.200
|
|
Total
Current Liabilities |
189053.700
|
155221.100 |
90035.300 |
|
|
Net Current Assets |
(8264.800)
|
100472.900 |
32470.800 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
772856.900 |
7402961.000 |
642327.800 |
|
PROFIT and LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
339334.600 |
293963.500 |
250219.800 |
|
|
|
Other Income |
8864.300 |
5283.600 |
8537.900 |
|
|
|
TOTAL (A) |
348198.900 |
299247.100 |
258757.700 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Raw materials consumed |
80143.700 |
|
160698.900 |
|
|
|
Purchase of finished, semi-finished and other products |
2095.200 |
1802.000 |
|
|
|
|
Changes in inventories of finished goods, work-in-progress and
stock-in-trade |
(2207.200) |
(1736.500) |
|
|
|
|
Employee benefits expense |
30472.600 |
28374.600 |
|
|
|
|
Other expenses |
118244.900 |
90248.200 |
|
|
|
|
Expenditure (other than interest) transferred to capital and other
accounts |
(4782.300) |
(1987.800) |
|
|
|
|
TOTAL (B) |
223966.900 |
179140.600 |
160698.900 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
124232.000 |
120106.500 |
98058.800 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
19254.200 |
17357.000 |
15084.000 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
104977.800 |
102749.500 |
82974.800 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
11514.400 |
11461.900 |
10831.800 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE TAX AND EXCEPTIONAL ITEMS |
93463.400 |
91287.600 |
- |
|
|
|
|
|
|
|
|
|
Less/ Add |
EXCEPTIONAL ITEM |
5110.100 |
6480.900 |
- |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) |
98573.500 |
97768.500 |
72143.000 |
|
|
|
|
|
|
|
|
|
Less |
TAX |
31609.300 |
29111.600 |
21675.000 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-I) |
66964.200 |
68656.900 |
50468.000 |
|
|
|
|
|
|
|
|
|
Less |
DISTRIBUTION ON
HYBRID PERPETUAL SECURITIES |
1733.000 |
45.400 |
0.000 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
166394.600 |
127726.500 |
94967.000 |
|
|
|
|
|
|
|
|
|
Add |
BALANCE BROUGHT
FORWARD – |
- |
- |
122.800 |
|
|
|
|
|
|
|
|
|
Add |
BALANCE OF
CENTENNIAL STEEL COMPANY LIMITED ON AMALGAMATION |
8.700 |
- |
- |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Proposed Dividends |
11654.600 |
11510.600 |
7097.700 |
|
|
|
Dividend on Cumulative Convertible Preference
Shares |
0.000 |
0.000 |
458.800 |
|
|
|
Tax on Dividends |
1815.700 |
1567.100 |
1228.000 |
|
|
|
General Reserve |
6696.400 |
6865.700 |
5046.800 |
|
|
|
Debenture Redemption Reserve |
0.000 |
10000.000 |
4000.000 |
|
|
BALANCE CARRIED TO
THE B/S |
211467.800 |
166394.600 |
127726.500 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export of Steel and other materials |
18048.700 |
22523.700 |
20348.100 |
|
|
|
Interest received |
755.500 |
579.000 |
206.000 |
|
|
|
Others |
(299.500) |
637.000 |
440.700 |
|
|
TOTAL EARNINGS |
18504.700 |
23739.700 |
20994.800 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
59121.400 |
43695.400 |
31025.700 |
|
|
|
Semi-Finished Products |
358.500 |
235.500 |
53.800 |
|
|
|
Components, Stores and Spare Parts |
4663.400 |
3534.800 |
2618.800 |
|
|
|
Capital Goods |
14252.300 |
7124.500 |
6727.100 |
|
|
TOTAL IMPORTS |
78395.600 |
54590.200 |
40425.400 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
|
|
|
|
|
|
Basic |
67.84 |
75.63 |
60.26 |
|
|
|
Diluted |
66.62 |
70.99 |
57.31 |
|
QUARTERLY RESULTS
|
PARTICULARS |
|
|
30.06.2012 |
|
Type |
|
|
1st
Quarter |
|
Net Sales |
|
|
89080.300 |
|
Total Expenditure |
|
|
61282.100 |
|
PBIDT (Excl OI) |
|
|
27798.200 |
|
Other Income |
|
|
1518.900 |
|
Operating Profit |
|
|
29317.100 |
|
Interest |
|
|
4544.400 |
|
PBDT |
|
|
24772.700 |
|
Depreciation |
|
|
3543.900 |
|
Profit Before Tax |
|
|
21228.800 |
|
Tax |
|
|
7663.200 |
|
Profit After Tax |
|
|
13565.600 |
|
Net Profit |
|
|
13565.600 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
PAT / Total Income |
(%) |
19.23
|
22.94 |
19.50 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
29.04
|
33.26 |
28.83 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
33.48
|
26.16 |
25.53 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.19
|
0.21 |
0.20 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
0.77
|
0.86 |
0.93 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
0.96
|
1.65 |
1.36 |
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 |
No |
|
30] |
Major Shareholders, if
available |
Yes |
|
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 |
TATA STEEL GROUP PERFORMANCE
Gross steel
deliveries were at par with previous year in line with the underlying market
conditions. Tata Steel India deliveries were higher by 3% while Tata Steel
Europe and Tata Steel Thailand deliveries declined by 5% and 12% respectively.
Deliveries of NatSteel Holdings were at par with the previous year.
Tata Steel India's
turnover increased by 15% due to better market conditions and enhanced product
mix. Higher revenues from sale of automotive and branded products and increased
sale of long products in the retail segment, contributed to the increased
turnover. The turnover of Tata Steel Europe and NatSteel increased by 3% and 4%
respectively while there was a reduction in the turnover of Tata Steel Thailand
by 2% (in their respective reporting currencies).
Earnings before
interest, taxes and depreciation (EBIDTA) of the group was Rs.135330.000
Millions in Financial Year 2011-12 compared to Rs. 171160.000 Millions in
Financial Year 2010-11.
Indian operations:
Tata Steel completed
the year 2011-12 with an all-round increase in the production levels. The
production of hot metal (7.75 mt), crude steel (7.13 mt) and saleable steel
(6.97 mt) are the highest milestones for the Company till date. The production
from the larger furnaces was maximised with better productivity and lower coke
consumption while increased vessel life in the steel melting area enhanced the
liquid steel production levels.
The deliveries during
Financial Year 2011-12 were 6.63 million tonnes compared to 6.42 million tonnes
in the previous year. There were several best ever performances recorded by
many units of the Company during Financial Year 2011-12.
The special
improvement initiative, the 'Kar Vijay Har Shikhar' programme launched in
India, has resulted in savings of Rs.9450.000 Millions in Financial Year
2011-12. The program is an operations transformation exercise implemented
through a focused methodology to de-bottleneck processes in order to increase
throughput and reduce costs across functions, notably marketing, mining and
production. Application of 'Theory of Constraints' in the Marketing function has
led them to leverage Their retail network to push unique value propositions to
customers, replenishing stocks at dealer levels on a predetermined basis,
resulting in robust retail sales and better margins.
The Ferro Alloys and
Minerals Division (FAMD) registered total sales volume of 1,351k tonnes in
Financial Year 2011-12 as against 1,464k tonnes in Financial Year 2010-11.
Lower sales of Chrome concentrate and Pyroxenite resulted in lower overall FAMD
sales. Sales of Ferro alloys (Chrome and Manganese Alloys) registered an
increase of 17% (Financial Year 2011-12: 309 k tonnes; Financial Year 2010-11:
264k tonnes) and dolomite sales registered an increase of 15% (Financial Year
2011-12: 480k tonnes; Financial Year 2010-11: 417 k tonnes). FAMD continues to supplement
Profits of the Steel division, in spite of weakness in international demand
witnessed in the second half of the financial year.
The Tubes division
recorded sales of 377k tonnes in Financial Year 2011-12 compared to 366k tonnes
in Financial Year 2010-11, an increase of 3% over the previous year. This was
due to improved demand in the irrigation and infrastructure segments and
increasing order book of Tata Structure. The year also marked the unveiling of
the 'CHARKHA' at Oval Maidan, Mumbai - a symbol of the innovative and
futuristic applications of the Tata Structure hollow section.
The Bearings division
registered sales of 34.54 million numbers in Financial Year 2011-12 compared to
32.95 million numbers in Financial Year 2010-11, signifying growth of 5%,
driven primarily by robust demand from the auto segment.
European operations:
Sales volume in
Europe remained fat through the year at around 3.5 million tonnes per quarter.
The liquid steel production for the year was 14 million tonnes. Higher demand
driven by restocking resulted in a sharp increase of 12% in the first quarter
of Financial Year 2011-12, before weakening demand and stabilising raw material
costs saw average revenue per tonne fall steadily each quarter through the
year. The fourth quarter average revenue per tonne was 9% lower than the first
quarter.
The Company's
European operations were impacted on account of excess steel capacity in the
Eurozone and weak underlying demand. Each quarter witnessed steeper decline in
steel price compared to raw material prices, resulting in cost/price squeeze.
Management continued its efforts to restructure Long Products business at
Scunthorpe, aligned business operations to current and projected demand in
Speciality business, infused capital to improve asset quality and energy
efficiency while simultaneously implemented cost reduction program titled 'Step
Up and Save'.
In order to enhance
customer service, Tata Steel Europe (TSE) is implementing a 'Supply Chain
Transformation' project, aimed at allocating customer demand to the production
hubs in the most efficient and cost-effective manner. This is expected to
reduce inventory levels, improve delivery compliance and strengthen customer
relationships. During the financial year 2011-12, TSE's customer orientation
was much appreciated. The Company was selected as the preferred supplier of
choice for select automakers and was shortlisted for a prestigious Annual
Quality Improvement award.
South East Asian
operations: NatSteel marginally increased its sales level in Financial Year
2011-12 (1.81 million tonnes) over Financial Year 2010-11 (1.80 million tonnes)
resulting in increase of turnover by 4%. NatSteel Singapore increased its sales
volume from 844k tonnes in Financial Year 2010-11 to 893k tonnes in Financial
Year 2011-12, a 6% growth in volume on the back of strong construction demand.
Singapore operations are focused to add higher proportion of value added
products to their existing range of products. In China, the sales volumes
reached 540k tonnes in Financial Year 2011-12 compared to 495k tonnes in
Financial Year 2010-11. NatSteel is setting up in China a Downstream
Reinforcements Solutions operation to add depth to its product portfolio.
Operations in Australia suffered on account of poor demand, rapidly
accelerating costs and disproportionate supply in the market place.
Tata Steel Thailand
(TSTH) recorded crude steel production of 1.18 million tonnes in Financial Year
2011-12 compared to 1.30 million tonnes in Financial Year 2010-11. Sales during
the year was lower at 1.14 million tonnes compared to 1.29 million tonnes
registered in Financial Year 2010-11. Thailand's economy suffered on account of
unprecedented foods which impacted construction activity country wide. Low
capacity utilization coupled with elevated imported scrap prices led to
reduction in rebar scrap spread, impacting margins of TSTH. In spite of tough
market conditions TSTH continued to be a market leader in rebars and high end
wire rods. Tata TISCON a prominent brand in India was launched for the first
time internationally in Thailand. TSTH diversified its product portfolio by
producing Special Bar Quality product, for applications in the automotive
segment and doubled its efforts to reduce costs, optimize product-mix and
improve yield of mills.
INDUSTRY
STRUCTURE:
Global Steel
Industry:
Overall the global
steel industry witnessed steady growth during 2011. The growth in global steel
demand was driven by increased demand from key steel end-user industries
including infrastructure, construction and automotive, especially in the
emerging markets; in spite of financial turbulence in the Eurozone, weak
private demand in the United States and events in Japan and the Middle East.
In 2011, the
global steel demand is estimated to have increased by 6% to reach a new high of
1,373 million tonnes, 13% above the pre crisis levels in 2007. Growth was led
by the emerging economies, notably China (6% up) and India (4% up), where new
demand were set. In the developed economies, demand levels remained 15-25%
below 2007 levels. Europe saw steel demand increase by 5% and North America by
9% in 2011, but steel demand in Japan fell by 3%, as the impact of the
earthquake and subsequent tsunami was felt on the manufacturing activity. The
growth in 2011 can be segregated in two halves. In the first half of 2011,
global steel consumption grew relatively faster, underpinned by infrastructure
construction and manufacturing activity. In the second half of 2011, steel
consumption was lower than in the first half due to moderate economic growth in
China, the United States and Europe.
In 2011, global steel output reached 1.5
billion tonnes, an increase of 7% compared to 2010 and a new record for world
crude steel production. All major steel producing countries apart from Japan
and Spain showed growth in 2011. Growth was particularly strong in Turkey,
South Korea and Italy.
Looking ahead,
global steel market developments are likely to remain generally positive, but
with lower growth in 2012 compared to 2011. In the first few months of 2012,
apparent steel demand remained muted due to the uncertain economic climate. For
2012 as a whole, global steel demand is forecast to grow by a further 4% to
reach 1,422 million tonnes. China, India and other emerging markets will
continue to drive demand but recent market developments suggest likely
slackening of demand. This is primarily due to the recent changes in the
monetary policy in China to reduce bank credit and improve asset quality as
well as lower growth forecast in India. While USA and Japan is expected to
continue it's recovery, steel demand in Europe is expected to fall by 1%.
Steel Industry in
India:
India improved its
ranking to become the 4th largest producer of crude steel in the world during
2011 after China, Japan and the USA. The country’s production grew by around 6%
in 2011 over 2010.
There has been a
diversification in the product mix of the steel industry in India towards
sophisticated value added steel used in the automotive sector, heavy machinery
and physical infrastructure. In 2011, the industry was faced with stiff
challenges due to rising inflationary pressures and deteriorating global growth
conditions. The multiple hikes in interest rates by the central bank also
impacted the industry’s growth in rate sensitive key user industries. The
production of flat products and long products of major Indian companies is
estimated to have grown by around 7.5% and 4.5% respectively during Financial
Year 2011-12 when compared with the previous financial year. Steel consumption
of Flat products and Long products in Financial Year 2011-12 grew by 2.3% and
5.8% respectively. Flat product exports grew by 23% and Long product exports
increased to 279k tonnes in Financial Year 2011-12 compared to 155k tonnes in
Financial Year 2010-11. There was a reduction in the import of Flat and Long
Products by 5% and 8% respectively. The steel prices during Financial Year
2011-12 have increased from the average prices prevailing in the previous
financial year driven by increase in the input costs and improvement in demand.
UK and European
Steel Industry:
The recovery of
the UK economy as was witnessed in Financial Year 2010-11 slowed down to 0.5%
GDP growth in Financial Year 2011-12. Real disposable income increased only
marginally and private consumption fell by 0.8% as personal savings have
started to rise. Industrial production during the year fell by 2.2%, while
unemployment increased to 5%. The UK government continued with the execution of
its fiscal austerity package to bring the budget to a balanced position by
2015-16 and to protect its credit rating. The estimated UK demand for carbon
steel products in Financial Year 2011-12 amounted to 9.7 mt. Estimated UK
demand for the Group’s main carbon steel products at 7.5 mt, remained broadly
unchanged compared to 2010-11, reflecting the weak economic conditions in the
UK. Imports from outside Europe peaked at 21% in the first half, declining
subsequently, as importers focused on higher priced regions and buyers reduced
purchases of longlead time imports due to uncertainty In underlying demand.
Apparent steel
consumption in the EU increased strongly during the first half of 2011 as
underlying demand improved and prices increased. Customers increased stock
levels and purchases of imports to secure supply. However, the pace of
underlying growth slowed from mid-2011 mainly due to the European sovereign
debt crisis. As a result, customers became unwilling to hold too much stock and
focused buying on immediate needs only. This cautious buying behaviour
continued throughout the second half of 2011, reflecting both the ongoing cash
and credit constraints faced by businesses, and the continuing high degree of
uncertainty in the general business climate. For 2011 as a whole, apparent
steel consumption in the EU is estimated to have increased by 5% year-on-year.
In the first months of 2012, although underlying demand remained below 2011
levels, apparent steel demand increased as customers replenished stock levels
from the low levels reached in December 2011. Steel imports into the EU rose
sharply during the first half of 2011 before moderating in the second half,
though the absolute volumes were still higher by approximately 25% over 2010
levels at almost 20 mt.
South-East Asian
Steel industry:
Preliminary
numbers compiled by South East Asia Iron and Steel Institute (SEAISI) suggest
that apparent steel consumption in the Association of South East Asian Nations (ASEAN)
at 50.5 million tonnes in 2011 grew by 4% over 2010. Overall demand in the area
grew by 4% over 2010 for both Flat products as well as Long products. Flat
products demand of 27 million tonnes was largely met through imports of 25
million tonnes whereas Long products demand of 24 million tonnes was mostly
catered through domestic production of 18.5 million tonnes. In Thailand,
demand for Flat steel increased moderately by 3.5%, which was met by higher
imports as domestic output declined significantly by 14%. The Flat steel
consumption in
Indonesia was up by 12% at 6
million tonnes, met largely by imports as domestic output was only 2.6 million
tonnes. In Philippines, Flat steel demand was met mostly by domestic
output with stagnation in the imports and a significant decline in exports. A
similar situation was witnessed in Malaysia’s Flat steel market with a
substantial increase in domestic output while imports declined by 6%. Vietnam’s
Flat steel demand declined by 2.7% whereas exports increased significantly by
40% to 1.4 million tonnes and also the increase in imports was to the tune of
5.8% to reach 5.6 million tonnes. In Singapore, Flat steel consumption
increased by 23% to 1.5 million tonnes,
met by increase in imports. Long steel demand in Singapore also witnessed a
significant increase this year by almost a million tonnes. NatSteel Holdings,
the only Long steel producer, expanded its production by 4.7% which, however,
was not sufficient to meet the local demand. As a result, import showed a significant
increase of 38% during the year.
TATA STEEL GROUP
OPERATIONS:
Gross steel
deliveries were at par with the previous year due to the economic situation in
Europe and severe floods in Thailand. Deliveries of Tata Steel India were
higher by 3% while Tata Steel Europe and Tata Steel Thailand deliveries
declined by 5% and 12% respectively. Deliveries of NatSteel were at par with
the previous year. The turnover for the Group at Rs.1329000.000 Millions during
Financial Year 2011-12 was 12% higher than the turnover in Financial Year
2010-11 (` 1187530.000 Millions). This increase was primarily driven by higher
prices across the Group due to higher input costs. EBITDA for the Group in
Financial Year 2011-12 was Rs.135330.000 Millions as compared toRs.171160.000
Millions of Financial Year 2010-11 primarily due to market conditions in
Europe.
The Group reported
a consolidated profit after taxes (after minority interest and share of profit
of associates) of Rs.53900.000 Millions during Financial Year 2011-12 (`
89830.000 Millions in Financial Year 2010-11).
Tata Steel India:
The production
from the larger furnaces was maximized with better productivity and lower coke
consumption while increased vessel life in the steel melting area enhanced
crude steel production to 7.13 million tonnes, crossing the 7 million tonnes
milestone for the first time.
Sales
• Overall sales at
6.63 million tonnes grew by 3% over last year (6.42 million tonnes in Financial
Year 2010-11).
• Due date
performance (which measures delivery compliance) was sustained at 96% in Flat
Products and improved significantly from 91% to 96% in Long Products.
Flat Products
• The sales of
Flat products at 3.74 million tonnes increased by 6% in Financial Year 2011-12
(3.54 million tonnes in Financial Year 2010-11).
• The division
achieved the best ever sales performance in Skin Panel (0.06 mt) and Tata
Shaktee GC sheets (0.21 mt).
Long Products
• Sales of Long
products at 2.90 million tonnes increased by 1% in Financial Year 2011-12 (2.88
million tonnes in Financial Year 2010-11).
• The division
crossed one million tonne sales of Tata TISCON in retail segment, clocking an
increase of 40% over Financial Year 2010-11.
Ferro Alloys and
Minerals division:
Growth in
Financial Year 2011-12 was subdued in most parts of the world, especially in
H2, due to the impact of the European crisis, strong appreciation of the Yen
and a liquidity crunch in India and China. Global stainless steel production
grew 3.5% in 2011at 33.4 million tonnes (against a 24% growth in 2010 at 32.3
million tonnes), impacting demand for Ferro alloys. Accordingly, the prices of
Ferro Chrome dropped by 7% in Financial Year 2011-12 compared to Financial Year
2010-11.
Going forward, the
demand for ferro alloys is expected to improve as a result of an increase in
infrastructural spending in India and China, strong steel demand from a buoyant
auto sector in the US and the likely recovery in the Eurozone. The division has
aggressive plans to increase its production capacity in Ferro Chrome and Silico
Manganese in Financial Year 2012-13.
The division was
honoured with the CAPEXIL (Chemical and Allied Export Promotion Council of
India) and EEPC (Engineering Export Promotion Council) awards in Financial Year
2011-12 for its export performance in the recent years. The division also won
the coveted TBEM Award (Tata Business Excellence Award) in 2011 and its mines
at Sukinda were judged as the 'OverallBest Performer' during the Odisha
Metalliferous Mines Safety campaign for 2011-12.
Tubes division:
During Financial
Year 2011-12, the Tubes division consolidated its position in the market by
registering a growth in production (1%) and sales (3%), enabled by the
identification of new applications for Tata Structura. The year also marks the
unveiling of the 'CHARKHA' – a symbol of the innovative and futuristic
applications of Tata Structura's hollow section.
The key
performance highlights of the division are given below:
• ‘Tata Pipes’
continues to be the market leader in India in the conveyance tubes business for
the plumbing and irrigation segments. Sales grew by 4% over the previous year.
For the first time in the country, red oxide-coated pipes are being supplied to
customers in firefighting and the HVAC segment.
• ‘Tata Structura’
sales have been the best ever at 1,08,000 tonnes. It has also been approved for
usage in solar panels by global players like Areva. The solar energy segment
will be one of the largest consumers of steel hollow section in future. Tata
Structura has been approved by Eastern Railway for making new platforms. Over
100 new platforms are expected to be built.
• Tata Steel’s
‘Precision Tubes’ at Jamshedpur along with Thai Summit Neel Auto (India’s
largest two wheeler ancillary group) celebrated the milestone of 2 million TVS
moped frames made with precision tubes. Precision Tube mills successfully
developed 3 high strength ERW sizes for Honda Activa Model. This is a major
enabler in increasing the share of business with Honda Motorcycle and Scooter
India Private Limited (HMSI).
The Tubes division
received the award of the 'Most Innovative Environment Project' at the CII
Environmental Best Practices Competition held on 9-10 February, 2012 at
Hyderabad.
Bearings division:
The division has posted
a Y-o-Y growth of 6% and 5% in production and sales respectively, driven
primarily by a robust demand from the domestic auto segment.
The division
adopted various improvement initiatives like TOC (Theory of Constraints)
methodology and increase in Overall Equipment Efficiency (OEE) of equipments
through implementation of Total Productivity Maintenance (TPM) practices.
During Financial
Year 2011-12, the division was bestowed with a number of awards and accolades
from its customers. The division was conferred with the 'Gold Certificate of
Merit' at the India Manufacturing Excellence Awards-2011 by Frost and Sullivan
and Economic Times in recognition of the efforts in Manufacturing and the
Supply Chain. The division has also qualified in the category of ‘Emerging
Industry Leader’ in JN Tata Business Excellence Assessment, for the first time.
Tata Steel Europe
(TSE):
The EU continues
to be the most important market for the TSE Group, accounting for 82% of its
total turnover in Financial Year 2011-12.
TSE's Crude steel
production stood at 14.0 million tonnes in Financial Year 2011-12, a 4% drop
over the previous year. Deliveries at 14.0 million tonnes in Financial Year
2011-12 were lower by 5% over Financial Year 2010-11.
In Financial Year
2011-12, about 70% of TSE’s crude steel production was used in hot rolled
coils. Most of the remainder was further processed into sections, plates,
speciality steels or wire rods, or sold in a semi-finished form. Approximately
25% of the hot rolled coil was sold without further processing and 55% was
further processed in cold rolling mills and coating lines. The remainder was
transferred to TSE’s tube mills for the manufacture of welded tubes. Principal
end-user markets for the Group’s steel products are the construction,
automotive, packaging, lifting and excavating, energy and power and rail
sectors.
Excluding seasonal
effects, the sales volumes of TSE improved in the last quarter of Financial
Year 2010-11 to reach the highest level of quarterly sales since Financial Year
2008-09. However, this higher level of sales was not sustained in Financial
Year 2011-12, with quarterly sales falling back to levels seen in early
Financial Year 2010-11 and remaining reasonably flat through the year.
During Financial
Year 2011-12, TSE announced various restructuring measures to introduce greater
flexibility into costs and operations. These included closure or mothballing of
parts of the Scunthorpe site, cessation of operations at its Construction
Products business at Newport, Wales, mothballing of the hot strip mill at
Llanwern, Wales, a recovery plan for its tube-making business and opening up of
a new steel distribution centre at Lackenby, Teeside to match operations with
projected market demand in the foreseeable future.
NatSteel Holdings:
During the
financial year under review, NatSteel Holdings (NSH)m achieved a production
level of 1.63 million tonnes as compared to 1.59 million tonnes of Financial
Year 2010-11, registering an increase of 3%. Sales volume at 1.81 million tonnes
was almost at par with the previous year (1.80 million tonnes). The performance
of the major business operations of the Company are discussed below:
During Financial
Year 2011-12, the Singapore operations registered growth of 6% in sales at 893k
tonnes.
NatSteel Xiamen,
the Chinese subsidiary of NatSteel sold 545k tonnes of rolled products during
Financial Year 2011-12, registering an increase of 9% over Financial Year
2010-11. Australian operations were in the red due to a combination of poor
demand and rapidly accelerating costs. However, there was an improvement in the
average revenue per tonne across all units, except Vietnam.
Tata Steel
Thailand (TSTH):
TSTH recorded a sales
volume of 1.14 million tonnes during Financial Year 2011-12 registering a
decrease of 11% over Financial Year 2010-11 (1.29 million tonnes). The
shortfall was due to a drop in demand owing to the worst ever floods in
Thailand that affected sales in second half of Financial Year 2011-12. However,
the Company improved its product mix, resulting in an improved average
realisation per tonne. Floods and lower demand led to a lower production of
1.16 million tonnes in Financial Year 2011-12 (1.28 million tonnes in Financial
Year 2010-11). The mini blast furnace in Thailand was mothballed from August
2011 due to the higher billet cost from the hot metal route, as against the
scrap route. The Company maintained its leadership position in high-end wire
rods and became the only Thailand-based producer to make an entry in the
Special Bar Quality products.
Tata Metaliks:
Tata Metaliks
Limited (TML), a subsidiary of Tata Steel Limited, is the largest producer of
Foundry Grade Pig Iron in India. The Company has two plants in India – in
Kharagpur (West Bengal) and Redi (Maharashtra) – with a total capacity of 6.5
lakh tonnes per annum. Tata Metaliks Kubota Pipes Limited (TMKPL), is a
subsidiary of Tata Metaliks Limited engaged in the manufacturing of DI (Ductile
Iron) Pipe with a total capacity of 1.10 lakh tonnes per annum.
In Financial Year
2011-12, the sales volume was lower at 356k tonnes as compared to 473k tonnes
in Financial Year 2010-11 due to lower production at Kharagpur unit and the
shutdown of the Redi unit from November, 2011. Higher raw material costs, a
disruption in the supply of iron ore at Kharagpur and poor blast furnace health
leading to higher specific consumption of raw material have resulted in negative
operating margins.
TML is striving to
improve its operating margin by setting up a Sinter Plant at Kharagpur and
upgrading the Blast Furnace to increase the production volume. The capacity of
the Kharagpur plant would be increased to 407k tonnes. The Company is also
setting up Coke Oven plant at Kharagpur on BOOT (Built Operate Own and
Transfer) basis.
TM International
Logistics Limited:
TM International
Logistics Limited (TMILL) and its subsidiaries offer logistic services
pertaining to port-based services, shipping, freight forwarding and marine
services.
TMILL runs
terminal operations in Haldia, Kolkata and Paradip. Port management services of
TMILL include container stuffing/ destuffing facility and handling of various
types of clean cargo, both bulk and break bulk, including project cargo. The
Company owns a fleet of pay loaders, forklifts and trailers to provide port
services and also a vast open storage area along with covered warehousing
facilities.
TMILL has been
chosen as the OandM operator at Dhamra Port, in Odisha, which lies between the
existing ports of Paradip and Haldia. TMILL handles the overall operations and
maintenance activity of the mechanised cargo handling system, comprising of
ship loader, ship unloader, stackers and reclaimers, wagon tippler, rapid rail
loading system and conveyor lines with transfer stations and control centres.
The shipping
business of TMILL offers integrated solutions to customers by packaging ocean
freighting with other auxiliary services like transloading and barging for
draft-restricted ports or with port handling and ship agency services.
During Financial
Year 2011-12, there was a marginal decrease in the profit of the Company due to
a decrease in the volumes handled at Gangavaram Port. However, there has been
an overall increase in volumes handled at ports due to the commencement of
operations at Dhamra Port. There was a significant jump in the profit of the
shipping business and increase in the TEUs (Twentytonne equivalent units)
handled by the freight forwarding business.
Tayo Rolls
Limited:
Tayo Rolls
Limited, a subsidiary of Tata Steel Limited, is a leading roll manufacturer in
India, promoted by Tata Steel Limited, Yodogawa Steel Works, Japan and Sojitz
Corporation Japan in 1968.
The rolls industry,
which is largely dependent on steel industry, was worst hit by the downturn in
2008. The reduction in demand due to lower consumption of rolls was compounded
by stringent inventory control instituted by steel manufacturers, resulting in
lower off-take. This situation has improved to some extent during Financial
Year 2010-11 and Financial Year 2011-12. However, the continued sluggish demand
in USA, Europe and other developed nations last year, had an effect on the
volume of overall export of rolls from India, thereby resulting in higher
allocation of capacities for the domestic market which adversely impacted the
order volume and realisation. The Company also witnessed severe working capital
shortage during the year which adversely affected production and had to close
at a lower level of production as compared to Financial Year 2010-11.
The completion of
the integrated forging facilities for the Forged Roll and Engineer Forgings
gives enough opportunity to the Company to cater to the requirement of the Forged
Rollsegment. The excess forging capacity to be used for Engineering Forgings
will also provide the Company with an opportunity to explore newer markets,
which may isolate it from the volatility of the steel industry.
Financial Year 2011-12
saw a turnaround of the pig iron business of the Company with realisations
firming up. The furnace, which was shut down from August, 2010, was functional
again on 15th April, 2011. The Company also entered into a conversion agreement
with Tata Steel in August, 2011 wherein Tata Steel supplies iron ore and nut
coke to Tayo for conversion to pig iron. The pig iron business is expected to
grow further in Financial Year 2012-13. During Financial Year 2011-12, the
Company made a preferential allotment of 8.5% Non Cumulative Redeemable
Preference Shares amounting toRs.850.000 Millions to its promoters.
Tata Steel
Processing and Distribution Limited:
Tata Steel
Processing and Distribution Limited (TSPDL) is the largest steel service centre
in India with a steel processing capacity of around 2 million tonnes. It has 8
steel processing units and several distribution locations across the country.
During the last
few financial years, the Company has diversified its business portfolio by
entering into the manufacture of high value auto components for Auto Majors
like Caterpillar and Tata Motors through its commissioned facility at Tada,
Andhra Pradesh and Pantnagar, Uttarakhand respectively.
During Financial
Year 2011-12, the Company recorded an all-time high tolling and distribution
production volume of 1.58 million tonnes, as compared to 1.46 million tonnes in
the previous year. Higher volumes supplemented with better realisations enabled
the Company to achieve an all-time high revenue and EBITDA during Financial
Year 2011-12. Different units of the Company received reputable accolades,
notable amongst which are:
• The Pantnagar
Unit won the prestigious Northern Region Tata Innovista Award for the second
consecutive year. The unit was also declared the 'Idea Champion' at the 13th
‘National Suggestion Summit’ conducted by Indian National Suggestion Schemes
Association.
• The Pune Unit
was the recipient of the 'Best in Class Operational Excellence Award' from
Stars of the Industry Group, Mumbai.
• The Tada Unit
achieved the prestigious Silver Certification in Caterpillar’s worldwide
Supplier Quality Excellence Programme.
• The highest
number of volunteer hours (approx. 1000 hours) contributed on a single day were
recorded within the Company, on the occasion of ‘World CSR Day’.
The Tinplate
Company of India Limited:
The Tinplate
Company of India Limited (TCIL) is the largest indigenous producer of
tin-coated and tin free steel sheets in India, manufacturing various grades of
electrolytic tinplates (ETP) and tin-free steel (TFS) sheets used for metal
packaging. TCIL has also been 'value-adding' its ETP/TFS products by way of
providing printing and lacquering facility to reach closer to food
processors/fillers.
During Financial
Year 2011-12, the Company achieved a production of 256k tonnes as compared to
241k tonnes in Financial Year 2010-11, registering an increase of 6%. Turnover
for Financial Year 2011-12 at Rs.6410.000 Millions was lower by 21% as compared
to Financial Year 2010-11 (` 8100.000 Millions), primarily on account of
reductions in export volume of around 32% due to adverse international market
conditions, lower production and sale on 'own' account compensated by a higher
conversion volume by around 30%. The profits of the Company were lower as compared
to the previous year due to depressed global tinplate prices, a steep increase
in input steel and tin prices, unfavourable exchange rates, higher depreciation
and interest charge relating to the new CRM2 facilities.
TCIL was an
associate company of Tata Steel till Financial Year 2010-11 and became a
subsidiary with effect from 1st April, 2011 consequent upon the automatic and
compulsory conversion of the 3% Fully Convertible Debentures (which were issued
in September 2009) into Equity Shares.
Tata NYK Shipping
Pte Limited:
TATA NYK Shipping
Pte Limited, a 50:50 joint venture between TATA Steel Limited, India and NYK
Line, a Japanese shipping major has been incorporated to cater to the growing
sea-borne trade for the Tata group and the Indian markets.
The Company is
primarily into the business of owning, operating and chartering of ships to
carry dry bulk and break bulk cargoincluding coal, iron ore, limestone and
steel products.
The Company has steadily
grown its fleet from two ships in 2007 to a current fleet size of 20 ships (2
owned and 18 chartered).
The company has a
diversified fleet, ranging from Supramax (58,000 DWT), Panamax (75,000 DWT) and
Capesize (180,000 DWT) vessels. The vessels are deployed for the Tata Group and
Indian dry bulk cargo, based on the available port facilities and cargo
requirements across geographies.
Despite the
difficult market conditions, the Company registered a growth of 42% in the
cargo carriage (11.2 million tonnes in Financial Year 2011-12 as compared to
7.9 million tonnes in Financial Year 2010-11). However, the revenue increased
by only 6% owing to the fact that spot shipping freight rates dropped by 50%.
This substantial decline in spot freight rates resulted in a loss of
Rs.1140.000 Millions in Financial Year 2011-12 as compared to a profit of
Rs.30.000 Millions in Financial Year 2010-11.
The Company has
taken steps to restructure its long-term fleet and to create more long-term
business opportunities to minimise the impact of market volatilities.
TRL Krosaki
Refractories Limited:
During first
quarter of Financial Year 2011-12, Tata Steel Limited sold its 51% equity stake
out of total 77.46% equity stake in Tata Refractories Limited (TRL) to Krosaki
Harima Corporation, Japan. Consequently, Tata Steel and its subsidiary’s
holding in TRL (now known as TRL Krosaki Refractories Limited) has reduced to
26.62%. Accordingly, it has ceased to be a subsidiary and became an associate.
TRL Krosaki has
maintained its leadership position in refractories market in India, producing
and supplying the full range of refractories products required for Iron and
Steel and other core industries.
The Company’s
performance was impacted by the economic downturn which severely subdued the
demand for industrial goods. Gross production at 222k tonnes was lower by 5% as
compared to 235k tonnes during Financial Year 2010-11. Similarly, sales volume
was also lower by 6% at 299k tonnes as compared to 318k tones during Financial
Year 2010-11. Despite lower sales volume, the Company was able to achieve
higher revenue primarily due to better product mix leading to a higher
averagerealisation. Higher input costs of raw materials, fuel and power along
with increase in finance cost during Financial Year 2011- 12 resulted in 47%
lower profit before tax (PBT) as compared to Financial Year 2010-11.
Tata Sponge Iron
Limited:
Tata Sponge Iron
Limited, a manufacturer of sponge iron and producer of power is located at
Joda, Odisha. During the financial year 2011-12, the production volumes were
lower by 29% as compared to previous year. Lower production is mainly on
account of disruption in supply of iron ore.
In Power business,
the Company achieved a generation of 134.40 million kwh of power in Financial
Year 2011-12 as compared to 191.39 million kwh in Financial Year 2010-11. The
sale of surplus power during the Financial Year 2011-12 was 88.31 million kwh
against with 133.77 million kwh sold in the previous year. The shortfall in
generation and sale of power is also due to stoppage of sponge iron kilns due
to shortage of iron ore.
During Financial
Year 2011-12, the lower sponge iron turnover is partly offset by higher
realisation. However, the shortages of raw materials resulting in lower production
and increase in the cost of raw materials have adversely impacted the
profitability for the year.
Tata Steel KZN Pte
Limited :
Tata Steel KZN,
located at Richards Bay on the KwaZulu-Natal coast of South Africa, is in the business
of making high-carbon ferrochrome. During Financial Year 2011-12, saleable
production volume of 94k tonnes decreased by 12% as compared to 107k tonnes
registered during Financial Year 2010-11. This was aresult of the furnaces
being shut for 3.5 months during winter. The sales were lower by 20% from 116k
tonnes in Financial Year 2010-11 to 93k tonnes in Financial Year 2011-12.
Increased losses in Financial Year 2011-12 were mainly contributed by a steep
increase in electricity costs, weakening of the Rand against USD, lower
realisation per tonne of ferrochrome and lower production volumes.
The operational
highlights of the Company during the year were the following:
• Improved average
daily hot metal production during H2 Financial Year 2011-12.
• Improved furnace
availability.
• Reduction in
average monthly auxiliary power consumption.
• Lowest fines
generation in Financial Year 2011-12.
• Successful
commissioning of modified Briquette plant in February 2012.
OUTLOOK:
The global economy
is on a recovery path due to concerted policy actions around the world although
it is still looking fragile in some regions. Primary uncertainty remains with
the Eurozone, where high debt levels and austerity measures may drag the
economic improvement for a prolonged period. US has shown sustained improvement
and looks set for a slow but steady growth in the coming period. Chinese GDP
growth and targets remains strong albeit softening to some extent in the recent
quarters. Growth in the Indian economy is expected to remain strong, although
the momentum in industrial activity is losing steam. Overall, the world GDP is
expected to grow by 3.3% in 2012 with emerging and developing economies leading
the growth (+5.4% in 2012) and developed economies growing by 1.2%.
Steel prices have
recovered from the lows reached in December last year with increased buying
activity seen across regions. However, the momentum seems to have lost steam
and with the economic conditions in many parts of the world not looking strong,
steel capacity utilisation remains below 80%. Seaborne iron ore and coking coal
prices have shown resilience at lower levels and are expected to remain
relatively stable in the coming months. In view of this, the extreme mismatch
of steel price and raw material costs seen in the previous year is not expected
to recur in the current year, although the margins for steelmakers worldwide
continue to remain under pressure.
World steel
forecasts that apparent steel consumption worldwide will grow by 3.6% to 1,422
mt in 2012 and should grow by 4.5% in 2013. Steel demand in the EU in 2012 is
expected to contract by 1.2% in 2012, while growing by 3.3% in the following
year. This represents below 80% of the pre-crisis demand levels. Chinese steel
demand growth is expected to be moderate as the government pursues economic
restructuring. As such, steel demand in China is projected to grow by 4% every
year in the next two years. Indian steel demand growth is expected to remain
subdued due to slowdown in investments and delayed start-up of industrial
projects. However, the automotive segment, the focus area for the Company, is
expected to grow by 11-13% in Financial Year 2012 13. As per worldsteel
forecasts, steel demand in India should grow by 6.9% in 2012 and the growth
should accelerate to 9.4% in 2013.
FINANCE:
The chances of a
slow but continued global recovery in Financial Year 2011-12 were largely
constrained by intensifying strains in the Eurozone and fragilities elsewhere,
with heightened increase in financial volatility arising mainly from concerns
about the depth of fiscal challenges in the Euro periphery area. Against a
backdrop of unresolved structural fragilities, a barrage of shocks hit the
international economy early last year, including the devastating Japanese earthquake
and tsunami and unrest in some oil-producing countries, leading to supply-chain
disruptions and increased commodity induced inflationary pressures across the
globe. While major advanced economies like United States tried to sustain their
recovery by addressing their medium-term fiscal imbalances and reforming their
financial systems, a credit downgrade of US treasuries by major credit rating
agencies rattled the investor’s confidence in the financial markets. On the
other hand, despite a series of discussions and ratification of bail-out
programmes, the Eurozone economy was plagued by ever-rising sovereign yields,
the effects of banks deleveraging on the real economy and internal political
instability arising from the need of additional fiscal consolidation.
From fears of
overheating in the first half, emerging and developing economies have also
started to slow down in the second half of financial year possibly due to
fragile external environment, greater-than-expected effect of macro-economic
policy tightening or weaker underlying growth. In the past few months, growth
in the advanced economies managed to surprise on the upside, as consumers in
the United States unexpectedly lowered their saving rates with increasing
confidence in the economic outlook and the business fixed investment staying
strong. However, the main priority of the policy makers throughout the world,
remains to restore confidence in the capital markets, put an end to the crisis
in euro zone by supporting growth, while containing deleveraging, encouraging
reforms and providing more liquidity and monetary accommodation.
In line with the
deleveraging journey started in the previous financial year, the Company
continued to rebalance its capital structure. The Company deleveraged by prepaying
Rs.39600.000 Millions of borrowings during the year. In May 2011, Tata Steel
successfully launched the second tranche of its first ever offering of
Corporate Hybrid Perpetual Securities through an additional issuance of
Rs.7750.000 Millions. The unique features of these securities are that they are
perpetual in nature, with no maturity or redemption, and are callable only at
the option of the Company thereby incorporating equity characteristics. In
order to maintain a liquidity buffer, the Company also tied up an unsecured
long-term Rupee term loan facility of Rs.20000.000 Millions to be drawn over
the next 10 months and repaid over the next five years.
As a positive
development, SandP’s upgraded Tata Steel Ltd’s Corporate Rating to BB from BB-
with Stable outlook in August 2011 on the back of the company’s sound financial
profile and strong cash flows. The Company’s rating had been raised because the
agency expects it to sustain the significant improvement in its cash flow
protection measures in the fiscal ending 31st March, 2012. They also
anticipate that the Company’s cash flows will further improve in fiscal 2013
due to the commissioning of brown field expansion. The agency also revised the
financial risk profile of Tata Steel to ‘significant’ from ‘aggressive’ due to
its deleveraging measures and higher cash flows.
The Company had
made a preferential issue of Ordinary Shares and Warrants to Tata Sons Limited
on 23rd July, 2010. As per the preferential issue, 12 million warrants were
issued, where each Warrant entitled Tata Sons Limited to subscribe to one
Ordinary Share of the Company at a price ofRs.594 per share. Consequently, as
per the SEBI (ICDR Regulations 2009), an amount equivalent to 25% of the price
i.e.Rs.148.50 per Warrant aggregating toRs.1782.000 Millions was received from
Tata Sons Limited in July 2010. On 20th January, 2012, Tata Sons Limited
exercised the option to convert all the Warrants into Ordinary Shares atRs.594
per share and paid the Company the balance amount ofRs.5346.000 Millions. As on
31st March, 2012, the cash and cash equivalent in Tata Steel Limited, India was
Rs.39010.000 Millions and Rs.107530.000 Millions for the Group.
CONTINGENT
LIABILITIES
Claims not
acknowledged by the Company
(Rs. in Millions)
|
Particulars |
31.03.2012 |
31.03.2011 |
|
Excise |
3208.100 |
3132.600 |
|
Customs |
136.900 |
136.800 |
|
Sales Tax and VAT |
5399.900 |
4945.400 |
|
State Levies |
2021.300 |
1872.800 |
|
Suppliers and
Service Contract |
743.100 |
722.100 |
|
Labour Related |
416.900 |
388.400 |
|
Income Tax |
179.200 |
1197.900 |
|
Royalty (Iron ore) |
803.500 |
- |
(b) The Company has
given guarantees aggregating Rs.3915.800 Millions (31.03.2011:Rs.9911.100 Millions) to banks
and financial institutions on behalf of others. As at 31st March, 2012, the
contingent liabilities under these guarantees amounts to Rs.3915.800 Millions
(31.03.2011:Rs.9911.100 Millions).
(c) Claim by a party arising
out of conversion arrangement -Rs.1958.200 Millions (31.03.2011:Rs.1958.200 Millions).
the company has not acknowledged this claim and has instead filed a claim of
Rs.1396.500 Millions (31.03.2011:Rs.1396.500
Millions) on the party. The matter is pending before the Calcutta High
Court.
(d) The Excise
Department has raised a demand of Rs.2354.800 Millions (31.03.2011:Rs.2354.800 Millions) denying
the benefit of Notification No. 13/2000 which provides for exemption to the
integrated steel plant from payment of excise duty on the freight amount
incurred for transporting material from plant to stock yard and consignment
agents. The Company filed an appeal with CESTAT, Kolkata and the order of the
department was set aside. The department has filed an appeal in Supreme Court
where the matter is pending.
(e) TMT bars and rods
in coil form were sent to an external processing agent (EPA), on payment of
duty at Jamshedpur (exworks) price, for decoiling and cutting into specified
lengths and then dispatch, at assessable value to various stock yards and
depots of the Company for further sale. Differential duty was paid by the
Company after the month was over. Excise department contested this activity as
‘manufacturing’ and demanded duty from the EPA ignoring the payment of duty
made by the Company. An appeal against the order of the Commissioner of Central
Excise, Jamshedpur was filed in CESTAT, Kolkata and was allowed in favour of
the EPA. Subsequently, the department challenged the same in Jharkhand High
Court, Ranchi, which is still pending for hearing. Subsequent demand in this
regard has not been adjudicated. Meanwhile, since September 2010, the decoiling
and cutting activity with the EPA has been discontinued. The potential
liability as of 31st March, 2012, will be approximately Rs.2988.700 Millions (31.03.2011:Rs.2988.700 Millions).
However, the Company has already paid duty amounting to Rs.1964.800 Millions (31.03.2011:Rs.1964.800 Millions) till
date based on the final sale price of the material.
(f) The State
Government of Odisha introduced "Orissa Rural Infrastructure and Socio
Economic Development Act 2004" with effect from February 2005 levying tax
on mineral bearing land computed on the basis of value of minerals produced
from the mineral bearing land. The Company had filed a Writ Petition in the
High Court of Odisha challenging the validity of the Act. Odisha High Court
held in November 2005 that State does not have authority to levy tax on
minerals. The State Government of Odisha moved to the Supreme Court against the
order of Odisha High Court and the case is pending with Supreme Court. The
potential liability, as of 31st March, 2012 would be approximately Rs.2,0858.800
Millions (31.03.2011:Rs.1,5627.200
Millions).
(g) In terms of the
agreements entered into between Tata Teleservices Ltd. (TTSL), Tata Sons Ltd.
(TSL) and NTT DoCoMo, Inc. of Japan (Strategic Partner-SP), the Company was
given by Tata Sons an option to sell 52,46,590 equity shares in TTSL to the SP.
Pursuant to the
rights issue made in 2010-11, SP’s shareholding in TTSL has increased from
1,17,26,17,866 equity shares ofRs.10 each to 1,24,89,74,378 equity shares
ofRs.10 each as on 31st March, 2012. The shareholding of SP represents 26.50%
of the paid up equity share capital of TTSL on a fully diluted basis as against
26.27% prior to the issuance and allotment of rights shares to them.
If certain
performance parameters and other conditions are not met by TTSL by 31st March,
2014 and should the SP decide to divest its entire shareholding in TTSL,
acquired under the primary issue and the secondary sale, and should TSL be
unable to find a buyer for such shares, the Company is obligated to acquire the
shareholding of the SP, at the higher of fair value or 50 percent of the
subscription purchase price subject to compliance with applicable exchange
control regulations, in proportion of the number of shares sold by the company
to the aggregate of the secondary shares sold to the SP, or if the SP divests
the shares at a lower price pay a compensation representing the difference
between such lower sale price and the price referred to above.
Further, in the
event of breach of the representations and warranties (other than title and
tax) and covenants not capable of specific performance, the Company is liable
to reimburse TSL, on a pro rata basis, upto a maximum sum ofRs.787.500
Millions. The exercise of the option by SP being contingent on several
variables the liability, if any, is remote and indeterminable.
(h) The Company has
been paying royalty on coal extracted from its quarries pursuant to the
judgement and order dated 23rd July, 2002 passed by the Jharkhand High Court.
However, the State Government demanded royalty at rates applicable to processed
coal. Though the Company has contested the above demand, it has started paying,
under protest, royalty on processed coal from November 2008. The incremental
amount (including interest), if payable, for the period till October 2008 works
out to Rs.3846.400 Millions (31.03.2011: Rs.3558.300 Millions) and
has been considered as a contingent liability.
(i) Bills
discountedRs.1747.800 Millions (31.03.2011: Rs.2123.800 Millions).
STANDALONE
FINANCIAL RESULTS FOR THE QUARTER ENDED ON 30TH JUNE 2012
PART I
(Rs. in Millions)
|
Particulars |
Quarter ended on
30.06.2012 |
|
|
Audited |
|
1 Income from operations |
|
|
a) Net sales / income from operations
(net of excise duty) |
88201.900 |
|
b) Other operating income |
878.400 |
|
Total income from operations (net) [ 1(a) + 1(b) ] |
89080.300 |
|
2 Expenses |
|
|
a) Changes in inventories of
finished goods, work-in-progress and stock-in-trade |
(4965.600) |
|
b) Purchases of finished,
semi-finished steel and other products |
770.300 |
|
c) Raw materials consumed |
24226.200 |
|
d) Employee benefits expense |
8591.300 |
|
e) Purchase of power |
5477.800 |
|
f) Freight and handling
charges |
4818.800 |
|
g) Depreciation and
amortisation expense |
3543.900 |
|
h) Other expenses |
22363.300 |
|
Total expenses (2a to 2h) |
64826.000 |
|
Profit / (Loss) from operations before other income, finance costs,
exceptional 3 items and
Tax [1 - 2] |
24254.300 |
|
4 Other income |
1518.900 |
|
Profit / (Loss) from operations before finance
costs, exceptional items and tax 5 [3
+ 4] |
25773.200 |
|
6 Finance costs |
4544.400 |
|
7 Profit / (Loss) before
exceptional items and tax [5 - 6] |
21228.800 |
|
8 Exceptional items : |
|
|
a) Profit on sale of non
current investments |
- |
|
9 Profit
/ (Loss) before tax [ 7 + 8 ] |
21228.800 |
|
10 Tax expense |
7663.200 |
|
11 Net
Profit / (Loss) for the period [9 - 10] |
13565.600 |
|
12 Paid-up
equity share capital [Face value ^10 per share] |
9714.100 |
|
13 Reserves excluding
revaluation reserves |
|
|
14
Basic earnings per share (not annualised) - in Rupees 14 (after exceptional items) |
13.51 |
|
15 Diluted
earnings per share (not annualised) - in Rupees 15 (after exceptional items) |
13.51 |
PART II
SELECT INFORMATION
FOR THE QUARTER ENDED ON 30TH JUNE 2012
|
|
Quarter ended on
30.06.2012 |
|
A Particulars of Shareholding |
|
|
1
Aggregate of public shareholding |
|
|
Number of shares |
649,564,258 |
|
% of shareholding |
68.08% |
|
2 Promoters
and promoter group shareholding |
|
|
a) Pledged / encumbered |
|
|
- Number of shares |
10,000,000 |
|
- % of shares to total share holding of promoter and promoter group |
3.28% |
|
- % of shares to total share capital of the company |
1.03% |
|
b) Non-encumbered |
|
|
- Number of shares |
294,514,362 |
|
- % of shares to total share holding of promoter and promoter group |
96.72% |
|
- % of shares to total share capital of the company |
30.32% |
|
Particulars |
Quarter ended on 30.06.2012 |
|
B Investor complaints |
|
|
Pending at the beginning of the Quarter |
7 |
|
Received during the quarter |
47 |
|
Disposed off during the quarter |
49 |
|
Remaining unresolved at the end of the quarter |
5 |
STANDALONE SEGMENT
REVENUE, RESULTS AND CAPITAL EMPLOYED
I
(Rs. in Millions)
|
Particulars |
Quarter ended on 30.06.2012 |
|
|
Audited |
|
Revenue by
Business Segment: |
|
|
Steel business |
81932.000 |
|
Ferro Alloys and Minerals |
7116.000 |
|
Others |
4949.300 |
|
Total |
93997.300 |
|
Less: Inter segment revenue |
4917.000 |
|
Net sales /
income from operations |
89080.300 |
|
|
|
|
Segment results
before finance costs, exceptional items and tax: |
|
|
Steel business |
24286.200 |
|
Ferro Alloys and Minerals |
1866.600 |
|
Others |
127.200 |
|
Unallocated income / (expenditure) |
(506.800) |
|
Total Segment results
before finance costs, exceptional items and tax |
25773.200 |
|
Less: Finance costs |
4544.400 |
|
Profit / (Loss)
before exceptional items and tax |
21228.800 |
|
Exceptional
items: |
|
|
Profit on sale of non current investments |
- |
|
Profit / (Loss)
before tax |
21228.800 |
|
Less: Tax expense |
7663.200 |
|
Net Profit /
(Loss) |
13565.600 |
|
|
|
|
Segment Capital
Employed: |
|
|
Steel business |
278924.700 |
|
Ferro Alloys and Minerals |
2673.600 |
|
Others |
2605.300 |
|
Unallocated |
13737.200 |
|
Total |
297940.800 |
FIXED ASSETS
· Land and Roads
· Buildings
· Lease-hold
· Railway Sidings
· Plant and Machinery
· Furniture, Fixture and Office Equipment
· Development of Property
·
Vehicles
PRESS REALEASE:
Tata Steel bags Prime Minister’s Trophy for best performing Integrated
Steel Plant
New Delhi,0 8.27.2012
~The Ministry of Steel has awarded Tata Steel Limited with the
Prime Minister’s Trophy for 2008-09
and Certificate of Excellence for the year 2009-10~
Tata Steel Limited, Jamshedpur, was conferred with the Prime
Minister’s Trophy here today for the best performing Integrated
Steel plant in the country during the performance year 2008 - 2009 and
Certificate of Excellence for 2009 – 2010. In recognition of its
outstanding performance, the Prime Minister's Trophy was presented by the
Hon’ble Prime Minister of India, Dr Manmohan Singh, to Mr H M Nerurkar,
Managing Director, Tata Steel.
After accepting the award on behalf of the Company, Mr Nerurkar
said: "We are delighted to receive this coveted recognition. Tata
Steel’s Indian operations are one of the most robust in the global steel
industry. It has been our endeavour to achieve international standards of
efficiency, quality, economy and sustainability in our operations. This
award will greatly motivate us to create higher benchmarks in the steel
industry and excel in all our endeavors."
The Company went through three rounds of rigorous assessment,
adjudged by a panel of distinguished judges. The enthusiasm and
involvement of its employees was highly appreciated by the panel of
judges for the Prime Minister’s Trophy. This reaffirmed the belief that
Tata Steel possessed a skilled workforce that has a will to excel.
Mr. P.N. Singh, President,
Tata Works Union expressed his happiness on the occasion. "It's a
proud moment for the Company. This award recognizes the efforts put in by
our employees who work day and night to make the management's vision a
reality. We would like to thank our employees for all their good wishes
at this moment", he said.
Beni Prasad Verma,
Union Steel Minister was happy to make the announcement and said “The
Prime Minister Trophy for the year 2009-2010 is being presented to Tata
Steel Limited Tata Steel is getting this prestigious award for the sixth
time. I take this opportunity to congratulate the workforce and the
management of Tata Steel Ltd on their magnificent performance.”
The Prime Minister,
Dr. Manmohan Singh, on expressing his happiness at the award ceremony and
said “Congratulations to Tata Steel who has won the Prime Minister’s
trophy. Wish the steel industry all the best.”
DRS Chaudhary
Secretary, Ministry of Steel congratulated Tata Steel, “Receiving the
trophy is a matter of great pride. Congratulations to Tata Steel.”
Tata Steel is among
the world’s lowest cost producers of steel, and one of the few steel
companies globally that is EVA+. The Prime Minister’s Trophy for the Best
Integrated Steel Plant was earlier awarded to Tata Steel for the years
1994-95, 1998-99, 1999-2000, 2000-01, 2001-02.
As per the provision
of Prime Minister’s Trophy Scheme, any company having won the Prime
Minister’s Trophy in two successive years receives the trophy in the
first year and a Certificate of Excellence for the next year. Therefore,
Tata Steel will be receiving the Prime Minister’s Trophy for 2008-09 and
the Certificate of Excellence for 2009-10.
About Tata Steel:
Established in 1907
as Asia's first integrated private sector steel company, Tata Steel Group
is among the top-ten global steel companies with an annual crude steel
capacity of over 26.5 million tonnes per annum (mtpa). It is now the
world's second-most geographically-diversified steel producer, with
operations in 26 countries and a commercial presence in over 50 countries.
The Tata Steel Group, with a turnover of US$ 26.13 billion in FY 12, has
over 80,000 employees across five continents and is a Fortune 500
company. The Group’s vision is to be the world’s steel industry benchmark
in “Value Creation” and “Corporate Citizenship” through the excellence of
its people, its innovative approach and overall conduct.
Underpinning this
vision is a performance culture committed to aspiration targets, safety
and social responsibility, continuous improvement, openness and
transparency. In 2008, Tata Steel India became the first integrated steel
plant in the world, outside Japan, to be awarded the Deming Application
Prize 2008 for excellence in Total Quality Management.
About the Award:
The trophy,
instituted in 1992-93 on the suggestion of the then Prime Minister P V
Narasimha Rao, recognises the outstanding performance of the integrated
steel plants. The award is intended to spur steel plants to achieve
international standards of efficiency, quality and economy in their
operations. The primary objective of the scheme is to generate a sense of
competition among the steel plants so that they continuously benchmark
themselves with the best and improve their performances.
As per the
recommendations of the Expert Committee and amendments carried out by the
Government of India, 13 main parameters have been evolved for evaluating
the performance of the integrated steel plants. They are: Steel capacity
utilisation, Efficiency of operations, Financial performance, Export
performance, Quality of products, Environment Management, Corporate
Social Responsibility, Safety, Thrust on RandD, Customer Satisfaction,
Enabling Parameters, Employees’ Satisfaction Index and Observation of the
Panel of Judges based on plant visits.
CMT REPORT (Corruption, Money Laundering and 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 rohibited 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.51.97 |
|
|
1 |
Rs.83.67 |
|
Euro |
1 |
Rs.67.19 |
INFORMATION DETAILS
|
Report Prepared
by : |
MRI |
SCORE and RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
9 |
|
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 |
9 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT LINES |
1~10 |
8 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
78 |
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 and 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.