MIRA INFORM REPORT
|
Report Date : |
30.03.2013 |
IDENTIFICATION DETAILS
|
Name : |
BHUSHAN POWER AND STEEL LIMITED |
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Registered
Office : |
4th Floor, Tolstoy House, 15-17, Tolstoy Marg, Connaught
Place, New Delhi - 110001 |
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Country : |
India |
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Financials (as
on) : |
31.03.2012 |
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Date of
Incorporation : |
22.02.1999 |
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Com. Reg. No.: |
55-108350 |
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Capital
Investment / Paid-up Capital : |
Rs. 1937.150
Millions |
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|
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CIN No.: [Company Identification
No.] |
U27100DL1999PLC108350 |
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|
|
Legal Form : |
A Closely Held Public Limited Liability Company |
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Line of Business
: |
Manufacturers of Flat, Round and Value Added Products in Steel. |
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No. of Employees
: |
Not Available |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (55) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD 218000000 |
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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 an The company can be considered good for business dealings at usual
trade terms and conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – June 30, 2012
|
Country Name |
Previous Rating (31.03.2012) |
Current Rating (30.06.2012) |
|
|
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
INDIAN ECONOMIC OVERVIEW
|
Source
: CIA |
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CARE |
|
Rating |
A- (Long Term Bank Facilities) |
|
Rating Explanation |
Adequate degree of safety It carry low
credit risk. |
|
Date |
30.08.2012 |
|
Rating Agency Name |
CARE |
|
Rating |
A1 (Short Term Bank Facilities) |
|
Rating Explanation |
Very strong degree of safety It carry lowest
credit risk. |
|
Date |
30.08.2012 |
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
|
Registered/ Corporate Office : |
4th Floor, Tolstoy House, 15-17, Tolstoy Marg, Connaught Place, New
Delhi - 110001, India |
|
Tel. No.: |
91-11-30451000 |
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Fax No.: |
91-11-23712737/ 30451101 |
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E-Mail : |
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Website : |
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Head Office : |
F – Block 1st Floor, |
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Manufacturing
Units : |
v Plot No 03, Industrial Area, Phase-1, Chandigarh, India v Plot No 71, Industrial Area, Phase-1, Chandigarh, India v Plot No 83, Industrial Area, Phase-1, Chandigarh, India v Plot No 141 – 142, Industrial Area, Phase-1, Chandigarh, India v Village Haripur
Khura, Ambala-Chandigarh Road, Derabassi, District Mohali, Punjab, India v NH-2,
Bangihatti, Mallickpara (Hooghly) Serampore, Kolkata, West Bengal, India v Village
Thelkoloi and Dhubenchapper Tehsil Rengali District Sambalpur, Orissa, India |
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Marketing Offices : |
Located at: v Andhra Pradesh v Amritsar v Assam v Bihar v Baddi v Bhiwadi v Bangalore v Chandigarh v Chennai v Delhi v Damtal v Derabassi v Faridabad v Indore v Jammu v Jalandhar v Jaipur v Gujarat v Haryana v Hosur v Himachal v Jammu and
Kashmir v Kanpur v Karnataka v Kullu v Kerala v Ludhiana v Maharashtra v Manesar v Madhya Pradesh v Odisha v Punjab v Panchkula v Rudrapur v Mandi Gobindgarh v Parwanoo v Rajasthan v Tamilnadu v Uttar Pradesh v Una v West Bengal v Jharkhand v Chhattisgarh v Tripura v Uttrakhand |
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Network Offices : |
Located at: CHANDIGARH OFFICE Plot No. 3, Industrial Area, Phase – I, Chandigarh - 160002, India Phone : 91-172-3911702/ 3911703 Fax : 91-172-3911704 E-mail : chandigarh@bpsl.net ORISSA OFFICE Village Thelkoloi, P.O.
Lapanga, Tehsil - Rengoli, District Sambalpur - 768232 Phone: 91-663-2535000/ 2562026-32 Fax: 91-663-2562007/ 2562011 E-mail : orissa@bpsl.net DERABASSI OFFICE Chandigarh Ambala Road, Derabassi - 140507, District
Patiala, Punjab, India Fax: 91-1762-307902 E-mail : bhushandrb@bpsl.ne KOLKATA OFFICE J.K. Millennium Center, 6th Floor, 46-D, Jawahar Lal Nehru Road, Kolkata - 700071, West Bengal, India Phone : 91-33-30512299/ 30512332/ 3052333 Fax: 91-33-30512235/ 30512297 E-mail : kolkata@bpsl.net |
DIRECTORS
AS ON 17.09.2012
|
Name : |
Mr. Sanjay Singal |
|
Designation : |
Chairman and
Managing Director |
|
Address : |
61, Sector 5, |
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Date of Birth/Age : |
19.06.1960 |
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Qualification : |
Graduate |
|
Experience : |
32 Years |
|
Date of Appointment : |
30.06.2008 |
|
DIN No.: |
00006579 |
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|
Name : |
Mrs. Aarti Singal |
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Designation : |
Vice Chairperson and Whole Time Director (Admin) |
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Address : |
61, Sector 5, |
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Date of Birth/Age : |
08.03.1961 |
|
Date of Appointment : |
20.09.2010 |
|
DIN No.: |
00007698 |
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|
Name : |
Mr. Ravi Prakash Goyal |
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Designation : |
Whole Time
Director (Commercial) |
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Address : |
House No. 157, Sector 16, Panchkula – 134112, |
|
Date of Birth/Age : |
09.09.1951 |
|
Date of Appointment : |
01.03.2011 |
|
DIN No.: |
00006595 |
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Name : |
Mr. Hardev Chand Verma |
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Designation : |
Whole Time
Director (Marketing) |
|
Address : |
House No. 1258, Near old Post Office, Mani Majra, |
|
Date of Birth/Age : |
15.11.1952 |
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Date of Appointment : |
01.03.2011 |
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DIN No.: |
00007681 |
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|
|
|
Name : |
Mr. Ram Naresh Yadav |
|
Designation : |
Whole Time
Director (Technical) |
|
Address : |
Flat No. 35, Vasant Apartment, Mayur Vihar, Phase – 1, |
|
Date of Birth/Age : |
16.07.1959 |
|
Date of Appointment : |
14.06.2003 |
|
DIN No.: |
00006697 |
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|
Name : |
Mr. Ram Dev Batra |
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Designation : |
Director |
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Address : |
4148, Pocket 4, Sector D, Vasant Kunj, |
|
Date of Birth/Age : |
16.05.1936 |
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Date of Appointment : |
01.03.2001 |
|
DIN No.: |
00007769 |
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Name : |
Mr. Dinesh Kumar Behal |
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Designation : |
Director |
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Address : |
House No. 3235, Phase – II, |
|
Date of Birth/Age : |
19.02.1958 |
|
Date of Appointment : |
19.06.2006 |
|
DIN No.: |
00011735 |
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|
Name : |
Mr. Jimmy Lachmandas Mahtani |
|
Designation : |
Director |
|
Address : |
APT BLKI, |
|
Date of Birth/Age : |
27.10.1976 |
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Date of Appointment : |
23.05.2012 |
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DIN No.: |
00996110 |
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|
|
Name : |
Mr. Anil S. Supanekar |
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Designation : |
Director |
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Address : |
694/2, Swami Kripa Apartments, |
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Date of Birth/Age : |
24.10.1940 |
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Date of Appointment : |
20.07.2007 |
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DIN No.: |
00023254 |
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|
Name : |
Mr. Aniket Singal |
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Designation : |
Director w.e.f. 27.06.2012 |
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|
Name : |
Mr. Melwyn Rego |
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Designation : |
Nominee Director - IDBI |
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Name : |
Mr. R. D. Batra |
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Designation : |
Director |
KEY EXECUTIVES
|
Name : |
Mr. Ravinder Kumar Gupta |
|
Designation : |
Secretary |
|
Address : |
2147/3, Sector 45 C, Chandigarh – 160002, Punjab, India |
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Date of Birth/Age : |
31.05.1958 |
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Date of Appointment : |
21.09.2000 |
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PAN No.: |
ADOPG2712Q |
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|
Name : |
Mr. R K Rastogi |
|
Designation : |
Vice President Finance |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
NOT AVAILABLE
AS ON 17.09.2012
|
Equity Share Breakup |
|
Percentage of Holding |
|
Category |
|
|
|
Individuals – Promoters |
|
11.65 |
|
Body
Corporate - Promoters |
|
82.82 |
|
FII |
|
5.53 |
|
Total |
|
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturers of Flat, Round and Value Added Products in Steel. |
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Products : |
v
HR Coil v
Steel Billets v
Alloy Steel Rounds v
Tor Steel v
Wire Rods v
Pig Iron v
Sponge Iron v
Power v
CR Coils v
Narrow CR Coils v
CR Sheets v
Precision Tubes (ERW and CEW) v
Cable Tapes v
Black Pipe v
GI Pipe v
GP Coils / Sheets v
GP Corrugated Sheets
|
PRODUCTION STATUS (AS ON 31.03.2010)
|
Particulars |
Unit |
Installed
Capacity |
Actual
Production |
|
Sinter |
M.T. |
1000000 |
503965 |
|
H.R. Coil |
M.T. |
900000 |
591785 |
|
Sponge Iron |
M.T. |
900000 |
490535 |
|
Pig Iron |
M.T. |
700000 |
309692 |
|
Metallurgical Coke |
M.T. |
450000 |
404053 |
|
Cold Rolled Steel Strips/Sheets/Coils |
M.T. |
400000 |
529213 |
|
Iron and Non Alloy Steel Ingots/Billets and Other Hot Rolled Products. |
M.T. |
335000 |
175896 |
|
Bars, Rods of Alloys Steel, Iron and Non Alloy Steel and Other Hot
Rolled Products |
M.T. |
125000 |
137639 |
|
Galvanised Steel Strips/Sheets |
M.T. |
120000 |
124788 |
|
Black and Galvanised Steel Tubes and Pipes and ERW Precision Tubes |
M.T. |
120000 |
145957 |
|
Cable Tape |
M.T. |
20000 |
16068 |
GENERAL INFORMATION
|
No. of Employees : |
Not Available |
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Bankers : |
v Axis Bank
Limited v Allahabad Bank v Andhra Bank v Bank of Baroda v Bank of India v Bank of
Maharashtra Bayem-LB, Germany v Canara Bank v Central Bank of
India Corporation Bank v Dena Bank v Export Import
Bank of India v ICICI Bank v IDBI Limited. v Indian Bank v Indian Overseas
Bank v Indusind Bank
Limited v IKB Deutsche
Industriebank, Germany v KarurVysya Bank v KFW Bank,
Germany v Life Insurance
Corporation of India v Oriental Bank of
Commerce v Punjab National
Bank v Punjab and Sind
Bank v State Bank of
Bikaner and Jaipur v State Bank of
Hyderabad v State Bank of
India v State Bank of
Mysore v State Bank of
Patiala v State Bank of
Travancore v Syndicate Bank v The Jammu and
Kashmir Bank Limited v UCO Bank v United Bank of
India v Union Bank of
India v Unicredit,
Germany v Vijaya Bank |
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Facilities : |
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Banking
Relations : |
-- |
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Auditors : |
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|
Name : |
Mehra Goel and Company Chartered Accountants |
|
Address : |
505, |
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E-Mail : |
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Website : |
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Cost Auditors : |
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|
Name : |
J. K. Kabra and Company Cost Accountants |
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Address : |
New Delhi, India |
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Joint Venture : |
v Rohne Coal
Company Private Limited |
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|
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Associates : |
v Nova Iron and
Steel Limited (from 11.06.2011) v Ambey Steel and Power
Private Limited (from 17.06.2011) |
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|
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|
Enterprise over which key managerial personnel have significant
influence: |
v Atma Ram House
Investment Private Limited |
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|
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Subsidiaries Companies : |
v Aarti Minerals
(Australia) Pty Limited v Aarti Resources
Mozambique Limitada v Skap Electronics
Private Limited |
CAPITAL STRUCTURE
AS ON 17.09.2011
Authorised Capital : Rs.3500.000 Millions
Issued, Subscribed & Paid-up Capital : Rs.1937.150 Millions
AS ON 31.03.2012
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
200000000 |
Equity Shares |
Rs.10/- each |
Rs. 2000.000 Millions |
|
5000000 |
Preference Shares |
Rs.100/- each |
Rs. 500.000 Millions |
|
|
Total |
|
Rs. 2500.000
Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
193715000 |
Equity Shares |
Rs.10/- each |
Rs. 1937.150
Millions |
|
|
|
|
|
Above includes 3,51,52,240 Equity Shares of Rs.10/- each fully paid up issued pursuant to the scheme of Amalgamation of Bhushan Industries Limited, Bhushan Metallics Limited and Decor Steel Limited with the company.
Note:
1 - Details of Shareholders
holding more than 5% shares in the Company
Equity shares of Rs.10 each
fully paid
|
Particular |
No. of shares |
% holding in the class |
|
Vision
Steel Limited |
41068673 |
21.20% |
|
Diyajyoti
Steel Limited |
40032750 |
20.67% |
|
Jasmine
Steel Trading Limited |
39772500 |
20.53% |
|
Marsh
Steel Trading Limited |
39553500 |
20.42% |
|
Sh.
Sanjay Singal |
12585436 |
6.50% |
|
Baring Private Equity Asia III Mauritius Holdings (3) Limited |
10714285 |
5.53% |
2 - Reconciliation of share
outstanding at the beginning and at the end of the reporting period
|
Particular |
No. of shares |
Rs. In Millions |
|
Equity
shares at the beginning of the period |
136051665 |
1360.517 |
|
Add:
Fresh issue of equity shares during the period |
57663335 |
576.633 |
|
Equity
shares outstanding at the end of the period |
193715000 |
1937.150 |
3 - Terms/Rights attached to
equity shares
The
Company has only one class of equity shares having a par value of Rs.10 per
share. Each holder of equity shares is entitled to one vote per share. Dividend
shall be paid proportionately to the amounts paid on shares. The dividend
proposed by the Board of Directors is subject to the approval of the
shareholders in the ensuing Annual General Meeting.
During
the year ended 31st March 2012, the amount of per share dividend recognized as
distributions to equity shareholders was Rs.0.05 (Previous year Rs.0.05).
In
the event of liquidation of the company, the holders of equity shares will be
entitled to receive remaining assets of the company, after distribution of all
preferential amounts. The distribution will be in proportion to the number of
equity shares held by the shareholders.
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 |
1937.150 |
1360.517 |
1360.517 |
|
|
2] Share Application Money |
0.000 |
11032.200 |
0.000 |
|
|
3] Reserves & Surplus |
52652.758 |
24831.769 |
20461.114 |
|
|
4] Advance Received for the Share Capital |
0.000 |
0.000 |
5739.000 |
|
|
5] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
54589.908 |
37224.486 |
27560.631 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
151516.799 |
110444.569 |
89477.429 |
|
|
2] Unsecured Loans |
17083.379 |
15223.205 |
15610.842 |
|
|
TOTAL BORROWING |
168600.178 |
125667.774 |
105088.271 |
|
|
DEFERRED TAX LIABILITIES |
7958.309 |
5158.309 |
3538.309 |
|
|
|
|
|
|
|
|
TOTAL |
231148.395 |
168050.569 |
136187.211 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
125476.255 |
78342.430 |
61042.898 |
|
|
Capital work-in-progress |
84419.515 |
66285.003 |
50298.744 |
|
|
|
|
|
|
|
|
INVESTMENT |
1467.645 |
884.029 |
5791.306 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
17648.281
|
23462.840
|
10589.104
|
|
|
Sundry Debtors |
11090.131
|
8590.260
|
7983.572
|
|
|
Cash & Bank Balances |
8604.496
|
4510.672
|
4814.384
|
|
|
Other Current Assets |
65.233
|
37.713
|
0.000
|
|
|
Loans & Advances |
21844.418
|
14646.535
|
7119.121
|
|
Total
Current Assets |
59252.559
|
51248.020
|
30506.181
|
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
9491.993
|
10269.441
|
10911.905
|
|
|
Other Current Liabilities |
29572.305
|
18057.438
|
393.754
|
|
|
Provisions |
403.281
|
382.034
|
146.259
|
|
Total
Current Liabilities |
39467.579
|
28708.913
|
11451.918
|
|
|
Net Current Assets |
19784.980
|
22539.107
|
19054.263
|
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
231148.395 |
168050.569 |
136187.211 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
67510.904 |
46784.390 |
40085.259 |
|
|
|
Other Income |
29.236 |
330.041 |
560.409 |
|
|
|
TOTAL (A) |
67540.140 |
47114.431 |
40645.668 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of Raw Materials Consumed |
29374.474 |
28280.309 |
|
|
|
|
Purchases of Traded Stock |
856.140 |
2551.930 |
|
|
|
|
(Increase)/Decrease in Inventories of Finished Goods, Work-in-Progress and Stock-in-Trade |
4016.266 |
(8248.088) |
29473.619 |
|
|
|
Employee Benefits Expense |
2967.019 |
2592.053 |
|
|
|
|
Other Expenses |
9765.342 |
7773.493 |
|
|
|
|
TOTAL (B) |
46979.241 |
32949.697 |
29473.619 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
20560.899 |
14164.734 |
11172.049 |
|
|
|
|
|
|
|
|
|
Less |
INTEREST &
FINANCIAL EXPENSES (D) |
7360.448 |
4424.106 |
4062.927 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
13200.451 |
9740.628 |
7109.122 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
5059.775 |
3729.227 |
3752.615 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
8140.676 |
6011.401 |
3356.507 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
2800.000 |
1632.840 |
800.460 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H)
(I) |
5340.676 |
4378.561 |
2556.047 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
7878.110 |
5507.449 |
5334.361 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transferred to General Reserve |
2000.000 |
2000.000 |
1000.000 |
|
|
|
Transferred to Debenture Redemption Reserve |
0.000 |
0.000 |
1375.000 |
|
|
|
Proposed Dividend |
7.200 |
6.800 |
6.803 |
|
|
|
Dividend Tax |
1.200 |
1.100 |
1.156 |
|
|
BALANCE CARRIED
TO THE B/S |
11210.386 |
7878.110 |
5507.449 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export Earnings |
13849.910 |
11496.834 |
8345.148 |
|
|
|
Interest |
8.472 |
23.213 |
52.093 |
|
|
TOTAL EARNINGS |
13858.382 |
11520.047 |
8397.241 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
7486.365 |
10925.479 |
6459.127 |
|
|
|
Stores & Spares |
334.782 |
486.667 |
819.354 |
|
|
|
Capital Goods |
6195.772 |
8159.115 |
4771.640 |
|
|
TOTAL IMPORTS |
14016.919 |
19571.261 |
12050.121 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
|
|
|
|
|
|
- Basic |
37.00 |
32.18 |
18.79 |
|
|
|
- Diluted |
32.26 |
26.17 |
17.62 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
PAT / Total Income |
(%) |
7.91
|
9.29
|
6.29
|
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
12.06
|
12.85
|
8.37
|
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
4.41
|
4.64
|
3.67
|
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.15
|
0.16
|
0.12
|
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
3.09
|
3.38
|
3.81
|
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.50
|
1.79
|
2.66
|
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 |
Yes |
|
8] |
No. of employees |
No |
|
9] |
Name of person contacted |
No |
|
10] |
Designation of contact
person |
No |
|
11] |
Turnover of firm for last
three years |
Yes |
|
12] |
Profitability for last
three years |
Yes |
|
13] |
Reasons for variation
<> 20% |
-- |
|
14] |
Estimation for coming financial
year |
No |
|
15] |
Capital in the business |
Yes |
|
16] |
Details of sister
concerns |
Yes |
|
17] |
Major suppliers |
No |
|
18] |
Major customers |
No |
|
19] |
Payments terms |
No |
|
20] |
Export / Import details
(if applicable) |
No |
|
21] |
Market information |
-- |
|
22] |
Litigations that the firm
/ promoter involved in |
-- |
|
23] |
Banking Details |
Yes |
|
24] |
Banking facility details |
Yes |
|
25] |
Conduct of the banking
account |
-- |
|
26] |
Buyer visit details |
-- |
|
27] |
Financials, if provided |
Yes |
|
28] |
Incorporation details, if
applicable |
Yes |
|
29] |
Last accounts filed at
ROC |
Yes |
|
30] |
Major Shareholders, if
available |
Yes |
|
31] |
Date of Birth of
Proprietor/Partner/Director, if available |
Yes |
|
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 |
UNSECURED LOANS
|
Unsecured Loans |
31.03.2012 |
31.03.2011 |
|
|
(Rs. In Millions) |
|
|
From Corporate Bodies |
146.000 |
0.000 |
|
Commercial Paper |
2850.000 |
500.000 |
|
Rupee Loan |
9476.137 |
13747.234 |
|
Foreign Currency Loans |
4611.242 |
975.971 |
|
Total |
17083.379 |
15223.205 |
HIGHLIGHTS OF INDUSTRY
REVIEW
In
the year 2012 the world steel production reached 1,527 million tonnes and
showed a growth of 6.8% over 2012. China remained the world's largest crude steel
producer in 2011 with total production of 695.5 million tonnes followed by
Japan (107.6 million tonnes) and USA (86.2 million tonnes). India occupied the
4th position with total production of 72.2 million tonnes for the second
consecutive year.
World
Steel Association has projected that apparent steel use will increase by 5.4%
in 2012. Such growth will be largely driven by China and India with China
apparent steel use in 2012 is expected to grow by 6%. For India, growth in
apparent steel use is expected to go up by 7.9% in 2012. Per capita consumption
of steel at world level is estimated at 206 kg, 427kg for China and 35kg for
India. Going forward much of global steel demand, growth is expected to be
driven by the developing economies of China and India and steel demand is
expected to be robust for the period 2010-14.
Chinese
Government continue to spend in infrastructure projects to develop rural
western China. It is expected to drive future growth, while policies like
raising minimum purchase price and subsidies to rural household on consumer
durables are expected to boost the share of rural consumption in total domestic
demand.
Consumption
growth in flat steel products was higher as compared to long steel products on
account of growth in the Indian automobile industry. Flat steel products
consumption rose by 9.7% (y-o-y) while that for long steel products increased
by 6.7% thereafter.
The
liberalisation of Industrial Policy and other initiatives taken by the
Government have given a definite impetus for entry, participation and growth of
the private sector in the steel industry. While the existing units are being
modernized / expanded, a large no. of units have also come up in the different
parts of the country based on modern, cost effective, state-of-the art
technologies. In the last few years, rapid and stable growth of the demand side
has also promoted domestic entrepreneurs to set up fresh Green field projects
in different states of the country. The country is expected to become second
largest producer of crude steel in the world by 2015-16, provided all
requirements for creation of fresh capacity are adequately met.
It
is expected that Indian crude steel Industry will grow at CAGR of around 10%
during 2010-2013. Moreover, with the Government proactive incentive plans to
boost economic growth by injecting funds in various industries, such as
construction, infrastructure, automobile and power will drive the Steel
Industry in future.
The
National Steel Policy has set up the target of 110 million tonnes of steel
production by 2018 whereas total steel production in 2012 was 72.2 million
tonnes. Major steel producers in India are planning to expand their capacities
in tune with the National Steel Policy.
HIGHLIGHTS OF OPERATIONAL
PERFORMANCE
The
Company continues to manage effectively supply chain management, product mix
enrichment, improvement in quality and productivity. The performance and the
Company achieved turnover of Rs.72816.500 Millions as compared to Rs.50203.500
Millions last year recording growth of 45.04%. Net Profit after taxes increased
by 21.97% to Rs. 5340.700 Millions. Cash Profit increased by 35.70% to Rs. 13200.500 Millions.
Better market demand, higher exports and better realization during the year has
resulted into increased financial performance.
EXPORTS
The
Company is making consistent efforts to mark presence in international market.
Growing response, quality consciousness and greater market acceptability in
global market has resulted into achieving the growth in the international
market. Exports turnover of the Company has increased by 23.88% over last year
to Rs. 15203.500 Millions by exporting its products to various countries i.e.
to Austria, Bhutan, Beinhoa City, Belgium, Congo, Cotondu, Dubai, England,
France, Freetown, Gambia, Kuwait, Lebanon, Liberia, Luanda, Malaysia, Monrovia,
Nepal, Nigeria, Oman, Singapore, Saudi Arabia, Sudan, Sri Lanka, South Africa,
Senegal, Sierra Leone, Switzerland, Tanzania, Tamatave, UA.E and Vietnam. Their
products confirm international quality standards coupled with efficacy of
sternest delivery tests applied worldwide which are key factors of higher
realization in international market.
MINES
COKING COAL
The
price of coking coal in global market has fallen compared with the last year prices.
However, the steel producers without captive mines are likely to see margins
contraction. The volatile exchange fluctuation on higher side has further
squeezed the margins. Demand of coking coal is expected to be higher while
supplies are most likely going to be less. Indian steelmakers will continue to
import coking coal. It is expected that import will increase to 60 million
tonnes by 2017 and 90 million tonnes by 2020 as to meet increasing capacities
each year.
THERMAL COAL
Global
coal prices of thermal coal have fallen down to a two year low of $87 per
tonnes in June 2012. It was trading at around $ 142 per tonnes at the beginning
of the year 2012. However, the slash in prices are offset by rupee
depreciation. Sudden supply of coal is outpacing the demand. High cost of
mining in countries like US may lead to supply cut. Coal is a critical input
for industries like steel, power and cement.
Mining
plan for coal mines at Jamkhani and Bijhan has been approved by Government of
India and the company expects mining lease will be executed at the earliest.
Necessary approvals are in place. Company's coal mines at Jamkhani in the State
of Odisha are expected to be operational shortly. Till that time, Company has
to depend on market supply and supply from Coal India Limited and other
available sources. The Company has been allotted coal block in Patal East block
in the State of Jharkhand for its proposed Integrated Steel and Power Project
in the State of Jharkhand.
ROHNE COAL BLOCK- A JOINT
VENTURE
Company
holds 24.09% shareholding in Joint Venture with JSW Steel Limited and Jai
Balaji Steel Limited under the name Rohne Coal Company Private Limited. Rohne
Coal Block in the State of Jharkhand has been allotted. The said joint venture
has acquired 204.47 acres land. Total allocated land is 3076.39 Acres. Mining
closure Plan has been approved by the Government of India. Government of India
has accorded prior approval under MMDRA for mining lease over coal bearing area
of 778 Hectare and prospecting Licence over an unexplored area of 420 Hectare.
Public hearing has been completed.
IRON ORE
Iron
ore prices are steadily increasing in recent year. Steel production in China
has been at the core of that country's growth story and the price of iron ore
has been a major component driving steel costs across the rest of the
industrial landscape.
Hon'ble
Supreme Court of India vide its order dated 14th March 2012 has directed State
of Odisha to recommend to Government of India the allotment of iron ore mines
in the State of Odisha to the Company. The Company has been allotted iron ore
block in Chatuburu block in the State of Jharkhand and taking necessary steps
for execution of mining lease.
POWER
Present
installed capacity in power sector in India is about X 1.99 lacs MW, out of
which thermal capacity constitute 65.84% (Coal based 56.04%, Gas based 9.19%
and oil based 0.60%), 19.50% capacity comprising from hydro, nuclear based
power capacity is 2.39% and renewal energy sources constitute about 12.25% of
the total installed power capacity.
Number
of power plants will increase in the years to come with various State
Government inviting private players to invest in the power sector. It is
estimated that Indian Power Sector will add around 45000 MW by 2013-14.
Renewable energy creates huge opportunities for power generation, however,
thermal based power sector will remain the dominant source for energy in India.
Investments in power sector are expected to be high in the next five years. The
total demand for electricity in India is still more than its generation and
there is huge gap of demand and supply.
Supply
of indigenous coal to power sector may not be adequate. Government has
intervened for supply of coal to private power players for more generation of
power. Company has successfully commissioned 506 MW captive power plants.
PROJECTS - ODISHA EXPANSION
The
Company has successfully commissioned the facilities envisaged in various
Phases i.e. I, II, III and IV. All phases were completed within time schedule and
cost estimates.
PHASE –V
To achieve total integration of primary and secondary products, the Company is implementing the facilities under Phase V consisting facilities of Iron Ore Beneficiation Plant of 6.50 MTPA (feed) and Pellet Plant of 3.85 MTPA capacity. With the completion, the entire value chain of products fully integrated will be at one place to take further advantage of the present market scenario. The commissioning of the facilities under Phase V shall facilitate low grade iron ore to be upgraded in the Beneficiation Plant by increasing the iron contents of iron ore fines near to 63.1 %. The upgraded fines, thereafter, will be processed in the Pellet Plant and converted into Pellets and subsequently, these pellets will be used in DRI kilns and Blast Furnace as a substitute to high grade lump ore to reduce the cost of production. Low grade iron ore is available in abundance in India at low cost.
INTEGRATED STEEL AND
POWER PLANT – JHARKHAND
The Company has initiated steps for setting up of Integrated Steel and Power Plant of steel making facilities of 3 million tonnes and 900 MW captive power plant at an envisaged estimated capital outlay of X10,500 Millions in the State of Jharkhand. About 400 acres of land has been purchased and civil activities started. Government of Jharkhand has allotted Iron Ore Mines to the Company at Chattu Bum Ghatkuri Reserves and Coal mines has been allotted at Patal East.
INTEGRATED STEEL AND
POWER PLANT – CHHATTISGARH
The Company foresees the growth potential in the State of Chhattisgarh and has entered into a MOU for setting up an Integrated Steel and Power Plant of steel making facilities of 1.2 million tonnes and 300 MW captive power plants have been planned with an estimated capital outlay of Rs.5500 Millions. In furtherance of implementation of facilities under MOU, the Company has acquired substantial stake in a Chhattisgarh based steel company - Nova Iron and Steel Ltd for synergic business interest.
POWER PROJECT –
CHHATTISGARH
The Company is planning 1000 MW Power Project based on waste heat recovery in the State of Chhattisgarh. Initially the project cost estimated to be Rs.40000.000 Millions. Land and other infrastructure facilities yet to be identified.
FINANCE
TERM LENDING
During the year, Company has availed Term Loan of Rs.8530.000 Millions out of sanctioned Rupee Term loan of 2,853 Millions, ECA of Rs.448.600 Millions from sanctioned ECA of Rs.3565.000 Millions from KFWIPEX Bank Gmbh, Frankfurt, Germany for Odisha Phase-IV project.
Axis Bank has appraised Odisha Phase V Project and syndicated rupee term loan of Rs.32500.000 Millions, ECB $410 million (equivalent to Rs. 18450.000 Millions) out of the total loan requirement of Rs.52750.000 Millions, sub ordinate debt of Rs.650 Millions and ECA of Euro 28.73 million (equivalent of X180 Millions) has been tied up with Bayern LB, Germany. Out of this, the Company has availed rupee loan of 1,144.62 Millions, ECB of Rs. 10575.000 Millions, sub ordinate debt of Rs.6500.000 Millions and ECA of Rs. 1069.500 Millions.
During the year, the Company has received Long Term Loan/ECB of Rs.9825.000 Millions.
MANAGEMENT DISCUSSION AND
ANALYSIS
INDUSTRY OVERVIEW - GLOBAL
SCENARIO
Steel
makers prospects till 2015 are mixed, given consolidations in most parts of the
old industrial world, a resurgence of steelmaking capacity addition in the Far
East particularly in India, in Latin America (Brazil) and in the Middle East, a
revitalization of the Russian steel industry and continued massive expansion in
China. One factor stimulating new capacity is the technological revolution
which is sweeping in the industry.
Despite
the slowdown in late 2011, global economy is recovering in 2012 and the growth
is expected to pick up in part of the globe in the second half of this year.
Growth for Asia and Pacific region as a whole is projected to be 6% in 2012 and
should pick up to 6.5% in 2013.
Steel
demand growth in China to moderate but continue to grow at a healthy CAGR of
8-9% for 2010-2014. China is expected to drive future growth to boost the share
of rural consumption in total domestic demand by raising minimum purchase price
and subsidies to rural household on consumer durables.
The
iron ore, coking coal prices are witnessing instability in global market.
Greece debt crises further deepend the financial market. Nuclear sumani in
Japan also impacted in industrial sector.
OVERVIEW OF INDIAN
STEEL INDUSTRY
Indian steel industry plays a significant role in the country's economic growth. The major contribution directs the attention that steel is having a stronghold in the traditional sectors, such as infrastructure and construction, automobile, transportation, industrial application etc. Moreover steel variant stainless steel is finding innovative application due to its corrosion resistance property. India is the fourth largest steel producer of the world and struggling to become the second largest producer in the coming years after China. In India, GDP growth is projected to moderate 6.9% in 2012 picking up slightly to 7.3% in 2013. Global uncertainty has hurt the domestic business sentiments and has encouraged the firms and investors to delay the implementation of investments proposals. Country has acquired a central position on the global steel industry with its giant steel mills, continuous modernization and upgradation of old plants, expansion of production capacity, improving energy efficiency and backward integration into global raw material sources. Global steel giant across the world has shown its interest in the steel industry due to its phenomenal performance.
In domestic market the steel demand is expected to grow at CAGR of 10-12% between 2009-10 to 2014-15. Govt. more focusing on Public Private Participation projects for infrastructure development are being implemented with speedy growth. Construction industry has earmarked investment between 2010-11 to 2014-15 to the tune of Rs. 16809 billion almost 1.9 times of previous 5 years. Power, roads, irrigation and urban infrastructure, housing sector are considered to be key drivers of growth and is likely to contribute to a significant portion of long steel demand in India.
Sector consumption pattern of steel in domestic market was 12% by automobile sector, 32% in pipe sector, 13% in oil and gas sector, 10% in capital goods sector, 10% in consumer durables and 23% in other sector. Similarly, the long steel end use consumption pattern in India for 2009-10 was 43% by infrastructure, construction 31%, Capital goods 6%, automobiles 4%, pipes 2%, Railways 2% and others 12%.
Indian steel industry needs to address its own opportunities and challenges some of which are unique. The issues around social licences to operate and growing resources nationalism are very visible with their impact on growth of steel industry. India's iron ore resources and surplus iron ore production capacity are significant strengths that the steel industry has been unable to fully utilize due to host of issues, many being external to the industry as such. The Industry needs iron ore for survival since it is the lifeline and inadequate supply of quality ore affects the industry and its future growth.
Good quality deposits of iron ore, particularly in the eastern region located in Odisha, Jharkhand and Chhattisgarh is prime destination of steel industry. The Company visualizes the potential of growth in steel sector.
OVERVIEW OF INDIAN
POWER SECTOR
The total installed capacity of Indian power sector is approx. 1.99 Lacs MW. The total fuel based power installed capacity is about 1.32 Lacs MW. Hydro (Renewable) capacity is 0.39 Lacs MW, nuclear based power capacity is 0.05 Lacs MW. Indian power sector suggest that the installed capacity will add around 45,000 MW by 2013-14. Renewal energy sources have the capacity of 0.25 Lacs MW. However, coal based power will remain the dominant source for energy in India. The next five years should ramp up the markets even more with high end investments.
Waste heat recovery process has been recognized as the competitive generation cost of power. In the Indian scenario, electricity sector is predominantly controlled by Public Sector Undertakings of Govt. of India in generation of electricity. Nuclear based power generation in the near future in the country shall bridge the gap of generation and demand of power sector. State level Corporations are also involved in the generation of electricity. The intra state distribution is managed by the State Electricity Boards (SEBs) and private companies. Power Grid Corporation of India is responsible for the inter-state transmission of electricity and the development of national grid.
COMPANY'S
PROSPECTS
The facilities
under Phase- IV of Odisha Project have been successfully commissioned. After
commissioning of facilities under Phase V, your Company will have unique
integrated steel complex having total integration of primary steel products
i.e. sponge iron, pig iron/ hot metal, Steel Billets, HR Coils and secondary
steel products CR Coils/Sheets, Galvanized Plain/Corrugated Sheets, Galvalume Sheets,
Colour Coated Sheets, Black Pipes, GI Pipes, Precision Tubes, Cable Tapes and
Special Alloy Steel, Bars, Wire Rod, Wires and Bright Bars with total control
on raw material supplies including own railway siding.
Mining of
Company's coal blocks at Jamkhani and Bijhan and generation of additional power
will further reduce the cost of inputs and saving in cost of production and
increase in profitability. Hon'ble Supreme Court of India in its decision has
also directed State of Odhisha to recommend for allotment of iron ore mines to
Govt of India. Rohne Coal Block in the State of Jharkhand will supplement to
meet the coal demand of the Company, further enhancing the self reliance.
Allocation of Patal (E) coal block and Chatuburu Iron Ore Mines in the State of
Jharkhand to the Company for its proposed Integrated Steel & Power Project
will further make the Company truly integrated. 1000 MW Power project in the
State of Chhatisgarh is envisaged for uninterrupted supply of Power.
FINANCIAL OPERATIONAL
PERFORMANCE
TERM LENDING
During
the year, Company has availed Term Loan of Rs. 853 Millions out of sanctioned
rupee term loan of Rs.28530.000 Millions, ECA of Rs. 448.600 Millions from sanctioned ECA
of Rs. 3565.000 Millions from KFW IPEX Bank Gmbh, Frankfurt, Germany for Odisha
Phase IV project.
Axis
Bank has appraised Odisha Phase V Project and syndicated rupee term loan of
Rs.32500.000
Millions, ECB $410 million (equivalent to Rs. 18450.000 Millions) out of the total
loan requirement of Rs. 52750.000 Millions, sub-ordinate debt of Rs. 6500.000 Millions, and ECA of Euro
28.73 million (equivalent of Rs. 1800.000 Millions) has been tied up with Bayern LB, Germany. Out of
this, the company has availed rupee loan of 1,144.62 Millions, ECB of
Rs.10575.000 Millions, sub ordinate debt of Rs. 6500.000 Millions and ECA of Rs.
1069.500 Millions.
During
the year, the Company has received Long Term Loans/ECB of Rs. 9825.000
Millions.
CONTINGENT
LIABILITIES:
(Rs. In Millions)
|
Particular |
31.03.2012 |
31.03.2011 |
|
Outstanding guarantees furnished to Banks and Financial Institutions including in respect of letters of credit (availed by the company) |
5059.419 |
2506.518 |
|
Cheque / DD and bills discounted with banks |
2037.276 |
1757.438 |
|
Claims against the Company not acknowledged as debt |
0.368 |
0.368 |
|
Central / State Sales Tax Act |
286.570 |
199.308 |
|
Orissa Entry Tax Act |
309.549 |
23.452 |
|
Central Excise Act,1944 |
299.153 |
1441.842 |
|
Income Tax Act,1961 |
537.305 |
241.169 |
FIXED ASSETS
Tangible Assets
v Freehold Land
v Leasehold Land
v Building
v Railway Siding
v Plant and Equipment
v Furniture and Fixture
v Office Equipment
v Vehicles
v Assets not owned by the Company
Intangible Assets
v Technical Knowhow
v Computer Software
WEBSITE DETAILS:
HISTORY
Growing from strength to strength
1970 - Started with very small initial outlay for manufacturing Door Hinges and later on, Rail Track Fasteners.
1973 - Manufacturing facilities set up for Tor Steel and Wire Rod in Chandigarh.
1981 - Rolling Mill Project commissioned at Chandigarh for Round and Narrow Strips.
1985 - Backward Integration Project for Steel Melting facilities.
1986 - Upgrading of Mini Steel Plant with continuous casting and ladle furnace facilities. 1997 - Commissioning of Narrow Width Cold Rolling Project at Chandigarh.
1998 - Commissioning of Precision Pipe Project at Chandigarh.
2001 - Commissioning of Cold Rolling and Galvanizing Complex at Kolkata.
2002 - Addition of narrow width Cold Rolling facilities at Kolkata.
2003 - Expansion of wide width Cold Rolling facilities, ERW Water Pipes and Tubes downstream facilities at Kolkata.
2004 - Further expansion of Cold Rolling facilities at Kolkata.
2005 - Commissioning of Orissa Project consisting of 4 DRI Kilns, Steel Making Facilities, Coal Washery and 100 MW Power Plant.
2007 - Commissioning of further expansion of Orissa Project consisting of HR Coil Mill, Steel making, Blast Furnance, Sinter plant, Coke oven plant, Oxygen plant and Lime and Calcining Plant.
2009 - Commissioning of 3.5 million tpa Coal Washery, 146 MW Power Plant and 0.3 million tpa Sponge Iron under Phase III of Orissa Project.
2010 - Commissioning of 130 MW Power Plant and Electric Arc Furnace under Phase III of Orissa Project and further expansion of Orissa Project under Phase IV consisting of 6 DRI Kilns, 130 MW Power Plant, Steel Making Facilities, 6th strand, 2nd CSP Caster and Tunnel Furnace, Oxygen Plant, Lime Calcining with downstream facilities - Cold Rolling, Galvanizing, Galvalume, Colour Coating, Precision Tube and Black Pipe/GI Pipe.
2011 - Commissioning of two DRI Kilns, Electric Arc Furnace, 2nd CSP Caster
and 6th Strand along with Tunnel Furnace, Cold Rolling Mill Complex and
Galvanising under Phase-IV of Orissa Project.
2012 - Commissioning of DRI Kilns, Power Plant, Oxygen Plant, Lime Calcining Plant, Galvalume, Color Coating, Precision Tube and Pipe Plant under Odisha Phase-IV Project, and implementation of further expansion of Odisha Project under Phase V, consisting of DRI Kilns, Iron Ore Benefication Plant, Pellet Plant, Cold Rolling, Pickling Line, Precision Tube Mill, Black Pipe Plant and Bright Bar finishing lines.
PROFILE:
Subject is a fully integrated 2.8 Million TPA Steel Making Company having turnover of INR 5020 Crores (USD 1000 Million) FY11.
The Company is certified to ISO 9001:2008 and TS-16949 Quality Standards and ISO 14001:2004 Environment Management Standards.
Subject is a leading manufacturer of flat and long products and has state-of the-art plants at Chandigarh, Derabassi, Kolkata and Orissa in India. These plants manufacture value added products covering entire steel value chain right from Coal Mining to manufacturing Pig Iron, DRI, Billets, HR Coils, CR Coils, GP/GC Sheets, Precision Tubes, Black Pipe/GI Pipe, Cable Tapes, Tor Steel, Carbon and Special Alloy Steel Wire Rods and Rounds conforming to IS and international standards.
The Company has successfully commissioned a 2.8 Million TPA Greenfield Steel and Power Plant in Orissa with HR Coil making facility - First in Private Sector in the State of Orissa. For this plant, technology and equipments were sourced from leading world-renowned company’s viz., Lurgi, ABB Limited, SMS Siemag, SMS Meer Danieli, LOI Tenova, Kocks etc. Subject has a wide marketing network in both India (comprising 35 sales offices) and abroad for selling its value added product range.
The rock-solid foundation combined with continuous upgradation and innovation has enabled the Company to surpass its goals constantly. Subject’s end-to-end portfolio has enabled it to offer a wide spectrum of products at superior quality consistently surpassing customers' specifications. In addition to export thrust, Subject cater to the domestic steel requirements of fast-growing sectors like automotive, white goods, construction / infrastructure, furniture, fasteners, telecommunication, power etc.
With a view to make its presence in a big way in Special Alloy Steel Long Product business, Subject has commissioned a most modern state of the art Wire Rod-cum-Bar Mill and is commissioning a host of downstream finishing facilities viz., Heat Treatment facilities, Bright Bar manufacture etc.
PRESS RELEASES:
SUPREME COURT
UNTANGLES BHUSHAN KNOT OVER ODISHA RESOURCES
Kolkata, May 2:
What's in a name? A lot, if it is a name of a corporate entity; more so, if it represented change in control. It took the apex court years to untangle complex legal knots created by the change of name of a company.
Bhushan Limited signed an MoU with the Government of Orissa, now Odisha, for setting up a 4-million-tonne steel plant in two phases. The State committed iron ore reserves in Keonjhar and Sundargarh districts and recommended allocation of coal blocks and facilitated a captive power plant in the State.
In February 2006, Bhushan Limited altered its name to Bhushan Power and Steel Limited (BPSL). The State Government rejected its claim for mining lease on the basis of MoU with Bhushan Limited.
The Supreme Court in a judgment on March 14 (Bhushan Power and Steel Limited and Ors vs State of Orissa) directed the State Government to stand by the MoU and ensure raw material security for BPSL. The State has allotted the agreement-specific reserve to some other firms.
The apex court noted that “trouble began to brew” in 2003.
“A decision had been taken to merge Bhushan Limited with Bhushan Steel and Strips Limited (BSSL) which had an identity that was separate from that of Bhushan Limited, though treated to be a family concern under the Bhusan family umbrella,” the judgment recorded. But on February 21, 2003, Mr Brij Bhusan Singhal, Chairman of the Group, said Bhushan Limited would not be merging with BSSL.
On March 17, 2003, BSSL also wrote to the Chief Minister, informing him that two companies had decided not to merge, with retrospective effect from April 1, 2002, as had been decided earlier.
On May 5, 2003, BSSL informed it was unable to process the setting up of the steel plant and “in order to minimise the friction” between the two family groups, BSSL had decided to set up a separate plant at a different location in Dhankanal district.
BHUSHAN POWER AND STEEL MAY LOSE COAL BLOCK OVER DELAY
BS Reporter / Bhubaneswar Jul 04, 2011, 00:39 IST
Coal ministry warning follows a show cause
notice issued on September 23 last year.
The Union coal ministry has threatened to
de-allocate the coal block allotted to Bhusan Power and Steel Limited (BPSL)
for inordinate delay by the company to develop the block. The block is located
at Jamkhani in Sundergarh district of Orissa.
The ministry’s warning follows a show cause
notice issued to the company on September 23 last year to explain the delay.
The review committee of the ministry noted the reasons given by the steel
company in response is not convincing.
Accordingly, the ministry, in a letter on June
29, has directed the company to develop the block immediately. Any further
failure in this regard would lead to necessary action as per the terms and
conditions of the allocation including de-allocation, it warned.
The Jamkhani coal block was allocated to the
allocatee under Section 3(3) (a) (iii) of the Coal Mines (Nationalisation)
Act-1973 vide letter no- 47011/1(13)/2001-CPAM/CA dated November 12, 2003 for
supply of coal to meet the requirement of 2.6 mtpa (million tonne per annum) of
coal for the company’s 0.68 mpa sponge iron plant and 135 Mw (mega watt) CPP.
In order to expedite the development of the
coal block, various review meetings were held from time to time with the
representatives of BPSL. The company had assured the ministry to commence coal
production from March, 2010.
In the review meeting held on July 20/21 last
year, it was noted that no serious efforts had been made by the company to
develop the coal block.
It was also found that some of the important
milestones such as land acquisition and R and R (rehabilitation and
resettlement) are still pending since allocation of the coal block, the
ministry said.
ARCELORMITTAL IN TALKS TO BUY STAKE IN BHUSHAN POWER AND STEEL – PAPER
MUMBAI | Thu Mar 18, 2010 9:32am IST
(Reuters) - ArcelorMittal, the world's
largest steelmaker, is in talks to buy a stake in unlisted Indian steel
producer Bhushan Power and Steel Limited to gain access to its plant and mining
rights, the Economic Times said.
Christophe Cornier, a member on the board of ArcelorMittal, and Chief Technology Officer Pierre Gugliermina were in New Delhi recently and met senior Bhushan Power officials, the newspaper said on Thursday, quoting people familiar with the development.
Bhushan Power Chairman Sanjay Singal told the paper there was no such plan. "ArcelorMittal hasn't approached us and we are not talking to the company," he was quoted as saying.
Officials at ArcelorMittal could not immediately be reached for comment.
Bhushan Power has seven steel plants with a combined annual capacity of 1.5 million tonnes, according to its website. It posted a turnover of 38.73 billion rupees ($850 million) in 2008.
The Economic Times said ArcelorMittal, which has about 8 percent of the global market, would gain access to a steel mill and some mining rights in eastern Indian state of Orissa if it succeeds in buying a stake.
MCNALLY BH ENGG
10th-Apr-2012
Mcnally Bh Engg - Received Order from Bhushan Power and Steel Limited (At a price of Rs. 1500.000 Millions)
McNally Bharat Engineering Company Limited has informed BSE that the Company have received an order from Bhushan Power and Steel Limited for Supply of Equipments (Shop Manufactured Mechanical Items) and Technological Structures, Detail Design, Engineering (Mechanical), Erection and Construction of Civil, Structural and Mechanical Work of the Recovery Coke Oven Plant and By Product Plant of Bhushan Power and Steel Limited, Rengali, Sambalpur, Orissa at a price of Rs. 1500.000 Millions
BHUSHAN POWER REVISES
OPEN OFFER
Kolkata, June 25:
Bhushan Power and Steel Limited, along with Titanic Steel Industries Limited and Olympian Finvest Limited (formerly Olympian Steel Industries Limited), termed ‘Person Acting in Concert’, has revised its open offer to shareholders of Orissa Sponge Iron and Steel Limited. The intending acquirers have raised the size of the offer. In an announcement, the offer manager, Centrum Capital Limited, said that the offer size was revised from 52 lakh to 79.3 lakh shares of Orissa Sponge, the target company.
The earlier offer, in 2009, for 20 per cent of the target company’s paid-up capital has now been raised to 26 per cent. This is the second revision of the open offer and is in connection with the original public announcement published on February 7, 2009. On July 26, 2010, Bhushan had made its first revision to the offer. According to the revised schedule, though the specified date remains unchanged (February 27, 2009), the offer reopens on June 28 and closes on July 17. In the last few years, the Bhubaneswar-located company has seen multi-cornered moves for acquisition of its control.
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No 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 exist to suggest that subject is or was
the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent
government authority for any violation of anti-corruption laws or international
anti-money laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on Corporate
Governance to identify management and governance. These factors often have been
predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs. 54.39 |
|
|
1 |
Rs. 82.32 |
|
Euro |
1 |
Rs. 69.54 |
INFORMATION DETAILS
|
Report Prepared
by : |
BVA |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
4 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
7 |
|
--CREDIT LINES |
1~10 |
7 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
DEFAULTERS |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
55 |
This score serves as a reference to assess
SC’s credit risk and to set the amount of credit to be extended. It is
calculated from a composite of weighted scores obtained from each of the major
sections of this report. The assessed factors and their relative weights (as
indicated through %) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend (10%) Operational size
(10%)
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General unfavourable
factors will not cause fatal effect. Satisfactory capability for payment of
interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with full
security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
- |
NB |
New Business |
- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.