MIRA
INFORM REPORT
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Report Date : |
30.11.2013 |
IDENTIFICATION DETAILS
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Name : |
TATA STEEL LIMITED |
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Formerly Known
As : |
TATA IRON AND STEEL COMPANY LIMITED |
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Registered
Office : |
Bombay House, 3rd Floor, 24, Homi Mody Street,
Mumbai – 400 001, Maharashtra |
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Country : |
India |
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Financials (as on)
: |
31.03.2013 |
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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. 9714.100 Millions |
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CIN No.: [Company Identification
No.] |
L27100MH1907PLC000260 |
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TAN No.: [Tax Deduction and
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 Shares are Listed on
the Stock Exchanges. |
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Line of Business
: |
Manufacturer of Steel and Steel Products. |
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No. of Employees
: |
35905 (Approximately) |
RATING and COMMENTS
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MIRA’s Rating : |
Aa (79) |
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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 2299000000 |
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Status : |
Excellent |
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Payment Behaviour : |
Regular |
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Litigation : |
Exist |
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Comments : |
Subject is among the top ten global steel companies and now the world’s second most geographically-diversified steel producers, with operations in 26 countries and a commercial presence in over 50 countries. It is an old and well-established and a reputed company having an excellent track record. There appears slight dip in profit of the company in 2013 over a previous year. However, the financial position of the company appears to be strong and healthy. The management is known to be well-qualified and knowledgeable, experienced businessmen. Trade relations are reported as trustworthy. Business is active. Payment terms are regular and as per commitment. The company can be considered excellent 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 – March 31st, 2013
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Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
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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
We are living in a
world where volatility and uncertainty have become the New Normal. We saw
a change of government in countries like Tunisia, Egypt, Libya and Vietnam.
Once powerful countries in Europe are now fighting for bankruptcy. We have
taken growth in the developing part of the world for granted but economic
growth in China and India has begun to slow. Companies that were synonymous
with their product categories just a few years ago are now no longer in
existence. Kodak, the inventor of the digital camera had to wind up its
operations, HMV, the British entertainment retailing company and Borders, once
the second largest bookstore have shut down due to their inability to evolve
their business models with the changing time. Readers’ Digest, Thomson Register
are no more !
There is another
megatrend happening. The World order is changing as economic power shifts from
West to East. According to McKinsey study, it took Britain more than 100 years
to double its economic output per person during its industrial revolution and
the US later took more than 50 years to do the same. More than a century later,
China and India have doubled their GDP per capital in 12 and 18 years
respectively. By 2020, emerging Asia will become the world’s largest consuming
block, overtaking North America.
The years after the
outbreak of the global financial crisis, the world economy continues to remain
fragile. The Indian economy demonstrated remarkable resilience in the initial
years of the contagion but finally lost ground last year. GDP growth slowed
down. Currency has been weakening. There is a marked deceleration in
agriculture, industry and services. Dampening sentiment led to a cut-back in
investment as well as private consumption expenditure. Inflation remained
at high levels fuelled by the pressure from the food and fuel sectors. The
large fiscal and current account deficit s continued to cause grave concern. It
is imperative that India regains its growth trajectory of 8-9 % sooner than
later. This is crucially important given the need to create gainful livelihood
opportunities for the millions living in poverty as also the large contingent
of young people joining the job market every year.
EXTERNAL AGENCY RATING
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Rating Agency Name |
CARE |
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Rating |
Non Convertible Debentures: AA+ |
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Rating Explanation |
High degree of safety and carry very low credit risk |
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Date |
October 2013 |
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Rating Agency Name |
CARE |
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Rating |
Perpetual Bond Issue : AA |
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Rating Explanation |
High Degree of safety and carry very low
credit risk |
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Date |
October 2013 |
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Rating Agency Name |
CARE |
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Rating |
Long Term Borrowings : AA+ |
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Rating Explanation |
High degree of safety and carry very low
credit risk. |
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Date |
October 2013 |
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.
INFORMATION DECLINED
MANAGEMENT NON-COOPERATIVE (91-33-22881560)
LOCATIONS
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Registered Office : |
Bombay House, 3rd Floor, 24, Homi Mody Street,
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/ 25/ 66658113 |
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Email : |
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Website : |
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Corporate Office : |
Design Call, 3rd Floor, General Office, Tata Steel, Bistupur, Jamshedpur – 831001, Jharkhand, India |
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Tel. No.: |
91-657-2426992 |
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Email : |
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Commercial Head Office : |
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: · Jamshedpur · Guwahati · Mumbai · Ahmedabad · Indore · Nagpur · Pune · Aurangabad · Faridabad · Chadigarh · Kanpur · Ludhiana · Jaipur · Chennai · Bangalore · Secunderabad 52, Jawaharlal Nehru Road, Kolkata-700071, West Bengal, India Tel. No.: 91-33-22887051/ 9251 Fax. No.: 91-33-22882079 |
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Factory : |
Located at: · Company’s Steel Works and Tubes Division - Jamshedpur (Jharkhand) · Ferro Manganese Plant - Joda (Odisha) · Cold Rolling Complex - Tarapur (Maharashtra) · Wire Division - Tarapur (Maharashtra), Bengaluru (Karnataka) · Bearings Division - Kharagpur (West Bengal) · Charge Chrome Plant - Bamnipal (Odisha) ·
Mines, Collieries and Quarries - States of
Jharkhand, Odisha and Karnataka |
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Overseas Office : |
Located at: · 30 Millbank, London, SW 1P 4 WY · 22 Tanjong Kling Road, Singapore – 628048 · Public Company Limited, Rasa Tower 2, 20th Floor, 555 Phaholyothin Road, Chatuchak, Bangkok 10900, Thailand · Europe |
DIRECTORS
AS ON 31.03.2013
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Name : |
Mr. Cyrus P. Mistry |
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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. H. M. Nerurkar |
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Designation : |
Managing Director |
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DIN No.: |
00265887 |
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Name : |
Dr. Karl-Ulrich Koehler |
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Designation : |
Managing Director and Chief Executive Officer |
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Date of Birth/ Age : |
01.04.1956 |
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Qualifications : |
Doctorate from Clausthal University of Technology, Germany |
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Expertise in
specific functional areas : |
Wide experience in steel industry |
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Date of Appointment : |
12.11.2010 |
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Name : |
Mr. Koushik Chatterjee |
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Designation : |
Executive Director and Group Chief Financial Officer |
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Date of Birth/
Age : |
03.09.1968 |
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Qualifications : |
B.Com (Hons) from Calcutta University and Fellow Member of the Institute of Chartered Accountants of India |
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Expertise in
specific functional areas : |
Wide experience in the field of Finance and Management |
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Date of
Appointment : |
09.11.2012 |
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Directorship
held in other public companies (excluding foreign companies) : |
· Tata Services Limited · The Tinplate Company of India Limited · Tata Metaliks Limited · Tata Steel Odisha Limited |
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Name : |
Mr. Nusli N. Wadia |
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Designation : |
Director |
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Date of Birth/ Age : |
15.02.1944 |
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Qualifications : |
Educated in UK |
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Expertise in
specific functional areas : |
Industrialist with rich business experience in general |
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Date of Appointment : |
29.08.1979 |
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Directorship
held in other public companies (excluding foreign companies) : |
· The Bombay Dyeing and Manufacturing Company Limited · Wadia Techno Engineering Services Limited · The Bombay Burmah Trading Corporation · Britannia Industries Limited · Tata Chemicals Limited · Tata Motors Limited · Go Airlines (India) Limited |
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Name : |
Mr. Jacobus Schraven |
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Designation : |
Director |
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Date of Birth/ Age : |
08.02.1942 |
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Qualifications : |
Masters Degree in Law |
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Expertise in
specific functional areas : |
Lawyer |
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Date of Appointment : |
17.05.2007 |
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Name : |
Mr. Andrew Robb |
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Designation : |
Director |
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Name : |
Mr. O. P. Bhatt |
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Designation : |
Director |
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Date of Birth/
Age : |
07.03.1951 |
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Qualifications : |
Graduate in Science and Post Graduate in English Literature (Gold Medal) |
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Expertise in
specific functional areas : |
Wide experience in Banking and Financial Markets |
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Date of
Appointment : |
10.06.2013 |
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Directorship held
in other public companies (excluding foreign companies) : |
· Oil and Natural Gas Corporation Limited · Hindustan Unilever Limited · Tata Consultancy Services Limited |
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Name : |
Mr. Ishaat Hussain |
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Designation : |
Director |
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Name : |
Mr. Subodh Bhargava |
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Designation : |
Director |
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Date of Birth/ Age : |
30.03.1942 |
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Qualifications : |
Mechanical Engineer from University of Roorke |
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Expertise in
specific functional areas : |
Wide experience across various industries |
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Date of Appointment : |
29.05.2006 |
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Directorship
held in other public companies (excluding foreign companies) : |
· Tata Communications Limited · TRF Limited · Carborundum Universal Limited · GlaxoSmithKline Consumer Healthcare Limited · Batliboi Limited · Larsen and Toubro Limited · Tata Motors Limited |
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Name : |
Ms. Mallika Srinivasan |
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Designation : |
Director |
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Name : |
Mr. D. K. Mehrotra |
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Designation : |
Director |
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Date of Birth/
Age : |
05.05.1953 |
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Qualifications : |
Honours Graduate in Science from Patna University. |
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Expertise in
specific functional areas : |
Rich and varied experience in Insurance Sector |
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Date of
Appointment : |
22.10.2012 |
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Directorship held
in other public companies (excluding foreign companies) : |
· ITC Limited · Axis Bank Limited |
KEY EXECUTIVES
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Name : |
Mr. A. Anjeneyan |
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Designation : |
Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 30.09.2013
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Category of Shareholder |
No. of Shares |
Percentage of Holding |
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(A) Shareholding of Promoter and Promoter Group |
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Bodies Corporate |
303482902 |
32.12 |
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1031460 |
0.11 |
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1031460 |
0.11 |
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304514362 |
32.22 |
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Total shareholding of Promoter and Promoter Group (A) |
304514362 |
32.22 |
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(B) Public Shareholding |
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30924770 |
3.27 |
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|
5235010 |
0.55 |
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122659 |
0.01 |
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216875410 |
22.95 |
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|
131298459 |
13.89 |
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|
356220 |
0.04 |
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|
263282 |
0.03 |
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|
89488 |
0.01 |
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|
3450 |
0.00 |
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384812528 |
40.72 |
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|
29120897 |
3.08 |
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|
197853325 |
20.94 |
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|
28668235 |
3.03 |
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|
5625 |
0.00 |
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|
5625 |
0.00 |
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|
255648082 |
27.05 |
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Total Public shareholding (B) |
640460610 |
67.78 |
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Total (A)+(B) |
944974972 |
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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|
26240257 |
0.00 |
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|
26240257 |
0.00 |
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Total (A)+(B)+(C) |
971215229 |
0.00 |
(1) Indian
BUSINESS DETAILS
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Line of Business : |
Manufacturer of Steel and Steel Products. |
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Products : |
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PRODUCTION STATUS (AS ON 31.03.2011)
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Particulars |
Unit |
Installed
Capacity |
Actual
Production |
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Crude Steel ( |
Tonnes |
6800000 |
6855424 |
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Wire Rods (Tarapur, |
Tonnes |
300000 |
296566 |
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Wires (Borivali, Tarapur; Maharashtra), ( |
Tonnes |
213900 |
191128 |
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Ferro Manganese and Silico Manganese (Joda, Odisha) |
Tonnes |
50000 |
49500 |
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Charge Chrome (Bamnipal, Odisha) |
Tonnes |
50000 |
45054 |
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Welded Steel Tubes ( |
Tonnes |
288000 |
281623 |
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Metallurgical Machinery ( |
Tonnes |
-- |
13515 |
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Bearings (Kharagpur, |
Numbers |
25000000 |
33085368 |
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 6690996 tonnes including
semi-finished steel produced 1533806 tonnes
and steel transferred for manufacture into Tubes/C.R. Strips at the Company’s
Tubes Division 390690 tonnes /
steel transferred for manufacture of Cold Rolled Coils at the Company’s Cold
Rolling Mill Division (West) 229701 tonnes
and steel transferred for manufacture of Wire Rods 291234 tonnes and wires 270163
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 : |
35905 (Approximately) |
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Bankers : |
· State Bank of India, Madame Came Road, Mumbai – 400021, Maharashtra, India · Central Bank of India, Madras Stock Exchange Building, 11, 2nd Line Beach, Chennai – 600001, Tamilnadu, India · Standard Chartered Bank, 4, Netaji Subhas Road, Kolkata – 700001, West Bengal, India ·
Industrial Development Bank of ·
Citibank International P.L.C. |
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Facilities : |
Note: (1) Details of outstanding secured
borrowings are as follows: (a) Loan from Joint Plant Committee – Steel Development Fund which includes funded interest Rs. 4064.500 millions (31.03.2012: Rs. 3161.300 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 on the Company's immovable properties situated at Jamshedpur, Dhanbad/West Bokaro and Adityapur in the state of Bihar (currently the State of Jharkhand) together with all buildings and structures thereon to the extent permitted to be mortgaged and all plant and machinery attached to the earth or permanently fastened to the earth. 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. 15170.700 millions (31.03.2012: Rs. 14118.400 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. (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 December, 2028. (iii) 2.00% p.a. interest bearing 15,000 debentures of face value Rs. 10,00,000 each are redeemable at a premium of 85.03% of the face value on 23rd April, 2022. (iv) 9.15% p.a. interest bearing 5,000 debentures of face value Rs. 10,00,000 each are redeemable at par on 24th January, 2021. (v) 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. (vi) 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. (vii) 9.15% p.a. interest bearing 5,000 debentures of face value Rs. 10,00,000 each are redeemable at par on 24th January, 2019. (viii) 10.20% p.a. interest bearing 6,200 debentures of face value Rs. 10,00,000 each are redeemable on 7th May, 2015. (ix) 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) USD 335.00 million equivalent to Rs. 18185.500 millions (31.03.2012: USD 335.00 million equivalent to Rs. 17044.800 millions) loan is repayable on 10th June, 2015. (ii) GBP 100.00 million equivalent to Rs. 822.14 millions (31.03.2012: GBP 100.00 million equivalent to Rs. 8150.500 millions) loan is repayable on 4th April, 2015. (iii) JPY 4.50 million equivalent to Rs. 2.600 crore (31.03.2012: Nil) loan is repayable in 20 equal semi-annual installments commencing from 27th July, 2014. (iv) USD 19.59 million equivalent to Rs. 1063.600 millions (31.03.2012: Nil) loan is repayable on 4th June, 2014. (v) Indian rupee loan amounting Rs. 15000.000 millions (31.03.2012: Rs. 15000.000 millions) is repayable on 28th July, 2013. (vi) Euro 48.63 million equivalent to Rs. 3384.600 millions (31.03.2012: Euro 54.04 million equivalent to Rs. 3670.300 millions) loan is repayable in 18 equal semi-annual installments; the next installment is due on 6th July, 2013. (vii) Euro 28.16 million equivalent to Rs. 1959.500 millions (31.03.2012: Euro 32.85 million equivalent to Rs. 2231.100 millions) loan is repayable in 12 equal semi-annual installments; the next installment is due on 1st July, 2013. (viii) Euro 4.85 million equivalent to Rs. 337.500 millions (31.03.2012: Euro 5.82 million equivalent to Rs. 395.200 millions) loan is repayable in 10 equal semi-annual installments; the next installment is due on 2nd May, 2013. (ix) Euro 181.50 million equivalent to Rs. 12631.500 millions (31.03.2012: Euro 183.01 million equivalent to Rs. 12430.300 millions) loan is repayable in 19 equal semi-annual installments; the next installment is due on 30th April, 2013. (x) Indian rupee loan amounting Rs. 20000.000 millions (31.03.2012: Rs. 5000.000 millions) is repayable in 9 semi-annual installments commencing from 30th April, 2013. (xi) JPY 35,799.00 million equivalent to Rs. 20613.000 millions (31.03.2012: JPY 71,598.00 million equivalent to Rs. 44376.400 millions) syndicated loan is repayable in 2 equal semi-annual installments; the next installment is due on 11th April, 2013. (c) Term loans from financial
institutions and others (i) Indian rupee loan amounting Rs. 6500.000 millions (31.03.2012: Rs. 6500.000 millions) is repayable on 16th June, 2019. (ii) Indian rupee loan amounting Rs. 1990.000 millions (31.03.2012: Rs. 1990.000 millions) is repayable on 30th June, 2016. |
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Banking
Relations : |
-- |
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Auditors : |
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Name : |
Deloittee Haskins and Sells Chartered Accountants |
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Subsidiaries : |
i) Adityapur
Toll Bridge Company Limited, India ii) Gopalpur
Special Economic Zone Limited, India iii) Jamshedpur
Utilities and Services Company Limited, India 1. Haldia Water
Management Limited, India 2. Naba Diganta
Water Management Limited, India 3. SEZ Adityapur
Limited, India iv) Kalimati
Investment Company Limited, India 1. Bangla Steel
and Mining Company Limited,
Bangladesh v) Lanka
Special Steels Limited, Sri Lanka vi) NatSteel
Asia Pte. Limited, Singapore 1. Tata Steel
Asia (Hong Kong) Limited,
Hongkong S.A.R. 2. Tata Steel
Resources Australia Pty. Limited,
Australia vii) Sila
Eastern Limited, * A Thailand viii) T S
Alloys Limited, India ix) Tata
Incorporated, USA x) Tata
Korf Engineering Services Limited, India xi) Tata
Metaliks Limited, India 1. Tata Metaliks
Kubota Pipes Limited, India xii) Tayo
Rolls Limited, India xiii) Tata
Steel (KZN) (Pty) Limited, South Africa xiv) Tata
Steel Holdings Pte. Limited, Singapore 1. Tata
Steel Global Holdings Pte. Limited, Singapore I. Orchid
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 Philippines, Inc., Philippines 7. Eastern Steel
Services Pte. Limited,
Singapore 8. Eastern Wire
Pte. Limited, Singapore 9. NatSteel
(Xiamen) Limited, China 10. NatSteel
Asia (S) Pte. Limited,
Singapore 11. NatSteel
Australia Pty. Limited,
Australia 12. NatSteel
Equity IV Pte. Limited,
Singapore 13. NatSteel
Recycling Pte Limited,
Singapore 14. NatSteel
Trade International (Shanghai) Company Limited, China 15. NatSteel
Trade International Pte. Limited,
Singapore 16. NatSteel
Vina Company Limited, Vietnam 17. PT Material
Recycling Indonesia, Indonesia 18. The Siam
Industrial Wire Company Limited,
Thailand 19. TSN Wires
Company Limited,* Thailand 20. Wuxi Jinyang
Metal Products Company Limited,*
China III. 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 and
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 Limited, UK 15. Bore Steel Limited, UK 16. British
Guide Rails Limited, UK 17. British
Steel Corporation Limited, 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 Nederland International B.V., Netherlands 23. British
Steel Samson Limited, UK 24. British
Steel Service Centres Limited,
UK 25. British
Steel Tubes Exports Limited,
UK 26. British
Tubes Stockholding Limited, UK 27. Bs Quest
Trustee Limited, UK 28. Burgdorfer
Grundstuecks GmbH, Germany 29. C V Benine
Netherlands 30. C Walker and
Sons Limited, UK 31. Catnic GmbH,
Germany 32. Catnic
Limited, UK 33. Cbs
Investissements SAS, France 34. Cladding and
Decking (UK) Limited, UK 35. Cogent Power
Electrical Steels Limited, UK 36. Cogent Power
Inc., Canada 37. Cogent Power
SA DE CV, Mexico 38. Cogent Power
Inc., USA 39. Cogent Power
Limited, UK 40. Cold drawn
Tubes Limited,* UK 41. Color Steels
Limited, UK 42. Corbeil Les
Rives SCI, France 43. Corby
(Northants) and District Water Company, UK 44. Cordor (Cand
B) Limited, UK 45. Corus
Aerospace Service Centre Suzhou Company Limited, China 46. Corus
Aluminium Verwaltungsgesellschaft Mbh, Germany 47. Corus Beteiligungs GmbH, Germany 48. Corus
Building Systems Bulgaria AD, Bulgaria 49. Corus
Building Systems N.V., Belgium 50. Corus
Building Systems SAS, France 51. Corus
Byggsystem AB, Sweden 52. Corus CNBV
Investments, UK 53. Corus
Coatings Usa Inc., USA 54. Corus Cold
drawn Tubes Limited, UK 55. Corus
Consulting B.V.,* Netherlands 56. Corus
Engineering Steels (UK) Limited, UK 57. Corus
Engineering Steels Holdings Limited, UK 58. Corus
Engineering Steels Limited, UK 59. Corus
Engineering Steels Overseas Holdings Limited, UK 60. Corus
Finance Limited*, UK 61. Corus Group
Limited, UK 62. Corus
Holdings Limited, UK 63. Corus
International (Overseas Holdings) Limited, UK 64. Corus
International Bulgaria Limited,* Bulgaria 65. Corus
International Limited, UK 66. Corus
International Romania SRL,. Romania 67. Corus
Investments Limited, UK 68. Corus
Ireland Limited, Ireland 69. Corus Large
Diameter Pipes Limited, UK 70. Corus
Liaison Services (India) Limited, UK 71. Corus
Management Limited, UK 72. Corus Norge
A/S*, Norway 73. Corus
Packaging Plus Norway AS, Norway 74. Corus
Primary Aluminium B.V., Netherlands 75. Corus
Properties (Germany) Limited, UK 76. Corus
Property, UK 77. Corus
Republic Of Ireland Subsidiaries Pension Scheme Trustee Limited, Ireland 78. Corus
Service Center Milano Spa, Italy 79. Corus
Service Centre Limited, N Ireland 80. Corus Sheet
and Tube Inc., USA 81. Corus Steel
Service STP LLC, Russia 82. Corus Trico
Holdings Inc., USA 83. Corus Tubes
Poland Spolka Z.O.O, Poland 84. Corus UK
Healthcare Trustee Limited, UK 85. Corus
Ukraine LLC, Ukraine 86. Cpn (85)
Limited, UK 87. Crucible
Insurance Company Limited, I
of Man 88. Degels GmbH,
Germany 89. Demka B.V.,
Netherlands 90. Dsrm Group
Plc., UK 91. Eric Olsson
and Soner Forvaltnings AB, Sweden 92. Esmil B.V.,
Netherlands 93.
Euro-Laminations Limited, UK 94.
Europressings Limited, UK 95. Firsteel
Group Limited, UK 96. Firsteel Holdings Limited, UK 97. Firsteel
Strip Mill Products Limited, UK 98. Fischer
Profil GmbH, Germany 99. Gamble Simms
Metals Limited, Ireland 100. Grant Lyon
Eagre Limited, UK 101. H E Samson Limited, UK 102. Hadfields
Holdings Limited, UK 103. Hammermega
Limited, UK 104. Harrowmills
Properties Limited, UK 105. Hille and
Muller GmbH, Germany 106. Hille and
Muller Usa Inc., USA 107. Hoogovens
(UK) Limited, UK 108. Hoogovens
Aluminium UK Limited, UK 109. Hoogovens
Finance B.V., Netherlands 110. Hoogovens
Technical Services Mexico De S. De R.L. De C.V.,* Mexico 111. Hoogovens
Usa Inc., USA 112. Huizenbezit
“Breesaap” B.V., Netherlands 113. Ickles
Cottage Trust, UK 114.
Immobilliere De Construction De Maubeuge Et Louvroil SAS, France 115. Industrial
Steels Limited*, UK 116. Inter Metal
Distribution SAS, France 117. Kalzip Asia
Pte Limited, Singapore 118. Kalzip
FZE*, UAE 119. Kalzip
GmbH, Germany 120. Kalzip
GmbH, Austria 121. Kalzip
Guangzhou Limited, China 122. Kalzip Inc,
USA 123. Kalzip
India Private Limited, India 124. Kalzip
Italy SRL, Italy 125. Kalzip
Limited, UK 126. Kalzip
Spain S.L.U., Spain 127. Layde Steel
S.L., Spain 128. Lister
Tubes Limited, Ireland 129. London
Works Steel Company Limited,
UK 130. Midland
Steel Supplies Limited, UK 131. Mistbury
Investments Limited, UK 132. Montana
Bausysteme AG, Switzerland 133. Myriad
Deutschland GmbH, Germany 134. Myriad
Espana Sl, Spain 135. Myriad
Nederland B.V., Netherlands 136. Namascor
B.V., Netherlands 137. Nationwide
Steelstock Limited, UK 138. Oostflank
B.V., Netherlands 139. Orb
Electrical Steels Limited, UK 140. Ore
Carriers Limited, UK 141. Oremco
Inc., USA 142. Plated
Strip International Limited, UK 143. Precoat
International Limited, UK 144. Precoat
Limited, UK 145.
Rafferty-Brown Steel Company Inc Of Conn., USA 146. Richard
Thomas And Baldwins 1978 Limited, New Zealand 147. Round Oak
Steelworks Limited, UK 148. Runblast
Limited, UK 149. Runmega
Limited, UK 150. S A B
Profiel B.V., Netherlands 151. S A B
Profil GmbH, Germany 152. Scrap
Processing Holding B.V., Netherlands 153. Seamless
Tubes Limited, UK 154. Service
Center Gelsenkirchen GmbH, Germany 155. Service
Centre Maastricht B.V., Netherlands 156. SIA Corus
Building Systems, Latvia 157. Simiop
Investments Limited, UK 158. Simiop Limited, UK 159. Skruv Erik
AB, Sweden 160. Societe
Europeenne De Galvanisation (Segal) Sa, Belgium 161.
Staalverwerking En Handel B.V., Netherlands 162. Stainless
Velsen-Noord BV, Netherlands 163. Steel
StockHoldings Limited, UK 164. Steelstock Limited, UK 165. Stewarts
and Lloyds Of Ireland Limited,
Ireland 166. Stewarts
And Lloyds (Overseas) Limited,
UK 167. Stocksbridge
Works Cottage Trust Limited, UK 168.
Stuwadoorsbedrijf Velserkom B.V., Netherlands 169. Surahammar
Bruks AB, Sweden 170. Swinden
Housing Association, UK 171. Tata Steel
Belgium Packaging Steels N.V., Belgium 172. Tata Steel
Belgium Services N.V., Belgium 173. Tata Steel
Denmark Byggsystemer A/S, Denmark 174. Tata Steel
Europe Distribution BV, Netherlands 175. Tata Steel
Europe Metals Trading BV, Netherlands 176. Tata Steel
France Batiment et Systemes SAS, France 177. Tata Steel
France Holdings SAS, France 178. Tata Steel
France Rail SA, France 179. Tata Steel
Germany GmbH, Germany 180. Tata Steel
Hungary LLC, Hungary 181. Tata Steel
Ijmuiden BV, Netherlands 182. Tata Steel
International (Americas) Holdings Inc, USA 183. Tata Steel International
(Americas) Inc, USA 184. Tata Steel
International (Australasia) Limited, New Zealand 185. Tata Steel
International (Benelux) BV, Netherlands 186. Tata Steel
International (Canada) Holdings Inc, Canada 187. Tata Steel
International Czech (Czech Republic) S.R.O Republic 188. Tata Steel
International (Denmark) A/S, Denmark 189. Tata Steel
International (Finland) OY, Finland 190. Tata Steel
International (France) SAS, France 191. Tata Steel
International (Germany) GmbH, Germany 192. Tata Steel
International (South America) Representações LTDA, Brazil 193. Tata Steel
International Hellas SA, Greece 194. Tata Steel
International (Italia) SRL, Italy 195. Tata Steel
International (Middle East) FZE ,UAE 196. Tata Steel
International (Nigeria) Limited,
Nigeria 197. Tata Steel
International (North America) Limited,*
USA 198. Tata Steel
International (Poland) sp Z.O.O., Poland 199. Tata Steel
International (Schweiz) AG, Switzerland 200. Tata Steel
International (Sweden) AB, Sweden 201. Tata Steel
International (UK) Limited,*
UK 202. Tata Steel
International (India) Limited India 203. Tata Steel
International Iberica SA, Spain 204. Tata Steel
Istanbul Metal Sanayi ve Ticaret AS, Turkey 205. Tata Steel
Logistics and Shipping BV, Netherlands 206. Tata Steel
Maubeuge SAS, France 207. Tata Steel
Nederland BV, Netherlands 208. Tata Steel
Nederland Consulting and Technical Services BV, Netherlands 209. Tata Steel
Nederland Investment BV, Netherlands 210. Tata Steel
Nederland Perfo BV, Netherlands 211. Tata Steel Nederland
Services BV, Netherlands 212. Tata Steel
Nederland Star-Frame BV, Netherlands 213. Tata Steel
Nederland Technology BV, Netherlands 214. Tata Steel
Nederland Tubes BV, Netherlands 215. Tata Steel
Netherlands Holdings B.V., Netherlands 216. Tata Steel
Norway Byggsystemer A/S, Norway 217. Tata Steel
Speciality Service Centre Xian Company Limited, China 218. Tata Steel
UK Consulting Limited, UK 219. Tata Steel
UK Holdings Limited, UK 220. Tata Steel
UK Limited, UK 221. Tata Steel
UK Rail Consultancy Limited, UK 222. Tata Steel
Usa Inc., USA 223. The Newport
And South Wales Tube Company Limited,
UK 224. The Stanton
Housing Company Limited, UK 225. The Steel
Company Of Ireland Limited Ireland 226. The
Templeborough Rolling Mills Limited,
UK 227. Thomas Processing
Company, USA 228. Thomas
Steel Strip Corp., USA 229. Tinsley
Trailers Limited, UK 230. Toronto
Industrial Fabrications Limited,
UK 231. Trierer
Walzwerk GmbH Germany 232. Tulip UK
Holdings (No.2) Limited, UK 233. Tulip UK
Holdings (No.3) Limited, UK 234. Tuscaloosa
Steel Corporation, USA 235. U.E.S.
Bright Bar Limited, UK 236. UK Steel
Enterprise Limited, UK 237. Ukse Fund
Managers (General Partner) Limited, UK 238. Ukse Fund
Managers Limited, UK 239. Unitol SAS,
France 240. Vlietjonge BV*,
Netherlands 241. Walker
Manufacturing And Investments Limited,
UK 242.
Walkersteelstock Ireland Limited, Ireland 243.
Walkersteelstock Limited, UK 244. Westwood
Steel Services Limited, UK 245. Whitehead
(Narrow Strip) Limited, UK IV. 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 8. T S Canada
Capital Limited,* Canada V. 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 Hong Kong (Asia) Limited, S.A.R 8. Tata Steel
International Hong Kong (Hongkong) Limited,* S.A.R 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 VII. Tata
Steel Global Procurement Company Pte. Limited, Singapore 1. ProCo Issuer
Pte. Limited, Singapore xv) Tata
Steel Processing and Distribution Limited, India xvi) 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 xvii) Indian
Steel and Wire Products Limited, India xviii) The
Tata Pigments Limited India xix) T M
Mining Company Limited India xx) Jamshedpur
Continuous Annealing and Processing Company Private Limited India xxi) The
Tinplate Company of India Limited, India xxii) Tata
Sponge Iron Limited, # India 1. TSIL Energy
Limited,* India xxiii) Tata Steel Odisha Limited, * India |
|
|
|
|
Joint Ventures |
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 Cladding Industry SA, Greece 8. Danieli Corus
Technical Services B.V., Netherlands 9. Fabsec
Limited, UK 10. Hks Scrap
Metals B.V.*, Netherlands 11. Ijzerhandel
Geertsema Staal B.V.,* Netherlands 12. Industrial
Rail Services Ijmond B.V., Netherlands 13. Laura Metaal
Holding B.V., Netherlands 14. Norsk Stal
AS, Norway 15. Norsk Stal
Tynnplater AS, Norway 16. Ravenscraig
Limited, UK 17. Redcar Bulk
Terminal Limited, UK 18. Tata
Elastron Steel Service Center SA, Greece 19. Tata Steel
Ticaret AS, Turkey 20. Texturing
Technology Limited, UK II. Tata
Steel Global Minerals Holdings Pte. Limited 1. Rio Tinto Benga (Mauritius) Limited, Mauritius |
|
|
|
|
Associate |
i) Kalimati
Investment Company Limited 1. Rujuvalika
Investments Limited, India ii) NatSteel
Asia Pte. Limited 1. SteelAsia
Development and Management Corp., Philippines 2. SteelAsia
Industries Inc., Philippines 3. SteelAsia
Manufacturing Corporation, Philippines iii) Tata
Incorporated 1. TKM Overseas Limited, UK iv) 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. TRF Limited, India v) Tata
Steel Holdings Pte. Limited a) Tata
Steel Global Holdings Pte Limited I. Tata
Steel International (Singapore) Holdings Pte. Limited 1. European Profiles
(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
Corus 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. Richard Lees
Steel Decking Asia Snd. Bhd., Malaysia 25. Rsp Holding
B.V.,* Netherlands 26. Schreiner
Fleischer AS, Norway 27. Shanghai Bao
Yi Beverage Can Making Company Limited,*
China 28. Thoresen and
Thorvaldsen AS, Norway 29. Trico LLC,
USA 30. Weirton/Hoogovens
GP, USA 31. Wupperman
Staal Nederland B.V., Netherlands III. Tata
Steel Global Minerals Holdings Pte Limited 1. New
Millennium Iron Corp., Canada vi) Indian
Steel and Wire Products Limited 1. Metal Corporation of India Limited, India |
|
|
|
|
Promoters
holding together with its subsidiary is more than 20% : |
Tata Sons Limited |
* Part of the
year.
# Earlier an
associate, became subsidiary during the year.
A By virtue of management control.
CAPITAL STRUCTURE
AS ON 31.03.2013
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
1,75,00,00,000 |
Ordinary Shares |
Rs.10/- each |
Rs. 17500.000 Millions |
|
35,00,00,000 |
"A" Ordinary Shares |
Rs.10/- each |
Rs. 3500.000 Millions |
|
2,50,00,000 |
Cumulative Redeemable Preference Shares |
Rs.100/- each |
Rs. 2500.000 Millions |
|
60,00,00,000 |
Cumulative Convertible Preference Shares |
Rs.100/- each |
Rs. 60000.000 Millions |
|
|
Total |
|
Rs. 83500.000
Millions |
Issued Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
97,21,26,020 |
Ordinary Shares |
Rs.10/- each |
Rs. 9721.300 Millions |
|
|
|
|
|
Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
97,12,15,229 |
Ordinary Shares |
Rs.10/- each |
Rs. 9712.100 Millions |
|
|
Amount paid up on 3,89,516 Ordinary Shares forfeited |
Rs.10/- each |
Rs. 2.000 Millions |
|
|
Total |
|
Rs. 9714.100
Millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
I.
EQUITY
AND LIABILITIES |
|
|
|
|
(1)Shareholders' Funds |
|
|
|
|
(a) Share Capital |
9714.100 |
9714.100 |
9594.100 |
|
(b) Reserves & Surplus |
542382.700 |
512450.500 |
458070.200 |
|
(c) Money
received against share warrants |
0.000 |
0.000 |
1782.000 |
|
|
|
|
|
|
(2) Share Application money pending allotment |
0.000 |
0.000 |
0.000 |
|
(3) Hybrid Perpetual Securities |
22750.000 |
22750.000 |
15000.000 |
|
Total
Shareholders’ Funds (1) + (2) |
574846.800 |
544914.600 |
484446.300 |
|
|
|
|
|
|
(3)
Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
235655.700 |
213532.000 |
244990.500 |
|
(b) Deferred tax liabilities (Net) |
18437.400 |
9705.100 |
9368.000 |
|
(c) Other long term liabilities |
3808.700 |
2980.300 |
3738.800 |
|
(d) long-term provisions |
21134.200 |
18513.000 |
22014.700 |
|
Total Non-current Liabilities (3) |
279036.000 |
244730.400 |
280112.000 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a) Short term borrowings |
709.400 |
656.200 |
1491.300 |
|
(b) Trade payables |
63699.100 |
58839.200 |
44648.100 |
|
(c) Other current
liabilities |
85035.400 |
87165.700 |
62621.000 |
|
(d) Short-term provisions |
15442.600 |
21723.800 |
22198.500 |
|
Total Current Liabilities (4) |
164886.500 |
168384.900 |
130958.900 |
|
|
|
|
|
|
TOTAL |
1018769.300 |
958029.900 |
895517.200 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i) Tangible assets |
246505.400 |
111423.600 |
115325.800 |
|
(ii) Intangible Assets |
2245.100 |
2239.000 |
2725.200 |
|
(iii) Capital
work-in-progress |
87222.900 |
160467.500 |
56122.800 |
|
(iv)
Intangible assets under development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current Investments |
499848.000 |
490783.500 |
435651.500 |
|
(c) Deferred tax assets (net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
65741.500 |
63010.800 |
104534.100 |
|
(e) Other Non-current assets |
1900.400 |
1909.800 |
27.600 |
|
Total Non-Current Assets |
903463.300 |
829834.200 |
714387.000 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a) Current investments |
4340.00 |
12041.700 |
29997.900 |
|
(b) Inventories |
52579.400 |
48589.900 |
39537.600 |
|
(c) Trade receivables |
7969.200 |
9040.800 |
4240.200 |
|
(d) Cash and cash
equivalents |
22181.100 |
39469.900 |
41387.800 |
|
(e) Short-term loans and
advances |
22078.300 |
18292.500 |
64589.400 |
|
(f) Other current assets |
6158.000 |
760.900 |
1377.300 |
|
Total Current Assets |
115306.000 |
128195.700 |
181130.200 |
|
|
|
|
|
|
TOTAL |
1018769.300 |
958029.900 |
895517.200 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
|
|
SALES |
|
|
|
|
|
|
|
Revenue from operations |
381994.300 |
339334.600 |
293963.500 |
|
|
|
Other Income |
9020.400 |
8864.300 |
5283.600 |
|
|
|
TOTAL (A) |
391014.700 |
348198.900 |
299247.100 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Raw materials consumed |
98774.000 |
80143.700 |
62440.100 |
|
|
|
Purchase of finished, semi-finished and other products |
4533.400 |
2095.200 |
1802.000 |
|
|
|
Employee benefits expense |
36085.200 |
30472.600 |
28374.600 |
|
|
|
Other expenses |
144146.600 |
118244.900 |
90248.200 |
|
|
|
Exceptional items |
6745.300 |
(5110.100) |
(6480.900) |
|
|
|
Expenditure (other than interest) transferred to capital and other accounts |
(8761.300) |
(4782.300) |
(1987.800) |
|
|
|
Changes in inventories of finished goods, work-in-progress and stock-in-trade |
(4046.000) |
(2207.200) |
(1736.500) |
|
|
|
TOTAL
(B) |
277477.200 |
218856.800 |
172659.700 |
|
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) BEFORE INTEREST, TAX,
DEPRECIATION AND AMORTISATION (A-B) (C) |
113537.500 |
129342.100 |
126587.400 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
18767.700 |
19254.200 |
17357.000 |
|
|
|
|
|
|
|
|
|
|
PROFIT
/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
94769.800 |
110087.900 |
109230.400 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/ AMORTISATION (F) |
16403.800 |
11514.400 |
11461.900 |
|
|
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) BEFORE TAX (E-F) (G) |
78366.000 |
98573.500 |
97768.500 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
27736.300 |
31609.300 |
29111.600 |
|
|
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) AFTER TAX (G-H) (I) |
50629.700 |
66964.200 |
68656.900 |
|
|
Less |
DISTRIBUTION ON
HYBRID PERPETUAL SECURITIES |
1798.400 |
1733.000 |
45.400 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
211450.400 |
166394.600 |
127726.500 |
|
|
|
|
|
|
|
|
|
Less |
BALANCE OF
CENTENNIAL STEEL COMPANY LIMITED ON AMALGAMATION |
-- |
8.700 |
-- |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Proposed Dividends |
7769.700 |
11654.600 |
11510.600 |
|
|
|
Tax on Dividends |
1287.300 |
1815.700 |
1567.100 |
|
|
|
General Reserve |
5063.000 |
6696.400 |
6865.700 |
|
|
|
Debenture Redemption Reserve |
0.000 |
0.000 |
10000.000 |
|
|
BALANCE CARRIED
TO THE B/S |
246161.700 |
211450.400 |
166394.600 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export of steel and other materials (F.O.B.) (including value of exports through export houses) |
23410.800 |
18048.700 |
22523.700 |
|
|
|
Interest received |
251.700 |
755.500 |
579.000 |
|
|
|
Others |
72.000 |
(299.500) |
637.000 |
|
|
TOTAL EARNINGS |
23734.500 |
18504.700 |
23739.700 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
56895.600 |
59121.400 |
43695.400 |
|
|
|
Semi-Finished Products |
1328.000 |
358.500 |
235.500 |
|
|
|
Components, Stores and Spare Parts |
8806.600 |
4663.400 |
3534.800 |
|
|
|
Capital Goods |
16544.600 |
14252.300 |
7124.500 |
|
|
TOTAL IMPORTS |
83574.800 |
78395.600 |
54590.200 |
|
|
|
|
|
|
|
|
|
|
Earnings /
(Loss) Per Share (Rs.) |
|
|
|
|
|
|
Basic
|
50.28 |
67.84 |
75.63 |
|
|
|
Diluted |
50.28 |
66.62 |
70.99 |
|
QUARTERLY RESULTS
|
PARTICULARS |
|
|
|
30.06.2013 |
|
Type |
|
|
|
1st
Quarter |
|
Net Sales |
|
|
|
94553.900 |
|
Total Expenditure |
|
|
|
66210.600 |
|
PBIDT (Excl OI) |
|
|
|
28343.300 |
|
Other Income |
|
|
|
1442.100 |
|
Operating Profit |
|
|
|
29785.400 |
|
Interest |
|
|
|
4664.400 |
|
Exceptional Items |
|
|
|
0.000 |
|
PBDT |
|
|
|
25121.000 |
|
Depreciation |
|
|
|
4595.800 |
|
Profit Before Tax |
|
|
|
20525.200 |
|
Tax |
|
|
|
6964.100 |
|
Provisions and contingencies |
|
|
|
0.000 |
|
Profit After Tax |
|
|
|
13561.100 |
|
Extraordinary Items |
|
|
|
0.000 |
|
Prior Period Expenses |
|
|
|
0.000 |
|
Other Adjustments |
|
|
|
0.000 |
|
Net Profit |
|
|
|
13561.100 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
PAT / Total Income |
(%) |
12.95
|
19.23 |
22.94 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
20.51
|
29.05 |
32.14 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
18.15
|
32.13 |
24.22 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.14
|
0.18 |
0.20 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
0.41
|
0.39 |
0.51 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
0.70
|
0.76 |
1.38 |
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 |
Yes |
|
9] |
Name of person contacted |
No |
|
10] |
Designation of contact person |
No |
|
11] |
Turnover of firm for last three years |
Yes |
|
12] |
Profitability for last three years |
Yes |
|
13] |
Reasons for variation <> 20% |
-- |
|
14] |
Estimation for coming financial year |
No |
|
15] |
Capital in the business |
Yes |
|
16] |
Details of sister concerns |
Yes |
|
17] |
Major suppliers |
No |
|
18] |
Major customers |
No |
|
19] |
Payments terms |
No |
|
20] |
Export / Import details (if applicable) |
No |
|
21] |
Market information |
-- |
|
22] |
Litigations that the firm / promoter
involved in |
-- |
|
23] |
Banking Details |
Yes |
|
24] |
Banking facility details |
Yes |
|
25] |
Conduct of the banking account |
-- |
|
26] |
Buyer visit details |
-- |
|
27] |
Financials, if provided |
Yes |
|
28] |
Incorporation details, if applicable |
Yes |
|
29] |
Last accounts filed at ROC |
Yes |
|
30] |
Major Shareholders, if available |
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 |
LITIGATION DETAILS:
|
UNSECURED LOANS
|
UNSECURED LOANS |
31.03.2013 (Rs.
in Millions) |
31.03.2012 (Rs.
In Millions) |
|
LONG TERM
BORROWINGS |
|
|
|
(a)
Bonds/Debentures |
|
|
|
(i) Non-convertible debentures |
114428.700 |
73284.000 |
|
(ii) 4.5% Foreign Currency Convertible Bonds |
29690.400 |
27828.100 |
|
(b) Term
loans |
|
|
|
(i) From banks |
62686.400 |
84737.200 |
|
(ii) From financial institutions and others |
8490.000 |
8490.000 |
|
(c) Deferred payment liabilities |
0.000 |
38.000 |
|
SHORT TERM
BORROWINGS |
|
|
|
Other loans |
709.400 |
656.200 |
|
Total |
216004.900 |
195033.500
|
GLOBAL ECONOMIC
CONDITIONS
The world Gross Domestic Product (GDP), as reported by the International Monetary Fund, witnessed a moderate growth of 3.2% in 2012 as compared to a growth of 4.0% in 2011. While the growth in the advanced economies was 1.2% in 2012 in contrast to 1.6% in 2011, growth in the emerging and developing economies fell to 5.1% in 2012 compared to 6.4% in 2011. There was a noticeable slowdown in the emerging market and developing economies during 2012, a reflection of the sharp deceleration in demand from key advanced economies. Global prospects have improved but the road to recovery in the advanced economies is still uncertain and volatile.
The US GDP increased by 2.2% in 2012 reflecting significant legacy effects from the financial crisis, continued fiscal consolidation, a weak external environment and disruptions in the northeast following Superstorm Sandy. The recovery is beginning to show some bright spots as credit growth has picked up and bank lending conditions have been easing slowly from tight levels. However, the impact of recent recovery is yet to show material impact on the economy. In comparison to the US, the euro zone economy contracted by 0.6% in 2012 over 2011. Amongst the euro zone countries, Germany posted a marginal growth of 0.9% while Italy and Spain posted a decrease of 2.4% and 1.4% respectively. Decisive policy actions at the European level–including Outright Monetary Transactions, the completion of the European Stability Mechanism, the Greek debt relief programme and the agreement on the Single Supervisory Mechanism–have increased confidence in the viability of the Economic and Monetary Union. However, lower sovereign spreads and improved bank liquidity are yet to translate into either improved private sector borrowing conditions or stronger economic activity. Emerging economies of eastern Europe experienced a sharp growth slowdown in 2012 reflecting spillover effect from the euro area crisis and domestic policy tightening in the larger economies. For 2012 as a whole, EU apparent steel consumption is estimated to have decreased by -9.7% to 140 million tonnes, with lower demand due to poor economic situation in the euro zone and reduced global trade. Output in the main EU27 steel using sectors declined in 2012 (Construction -5%, Automotive -4%, Mechanical Engineering -1%).
The GDP of Association of South East Asian Nation (ASEAN) (Indonesia, Malaysia, the Philippines, Thailand and Vietnam) grew at 6.1% reflecting resilient domestic demand. Thailand economy grew at 6.4% while that of Indonesia grew by 6.2% in 2012. It is estimated that the public spending by the Government especially in infrastructure and public reconstruction will sustain the growth in Thailand in the future. It is expected that continued remittance flows and low interest rates should continue to support the private consumption and investments in the region.
Steel consumption in the ASEAN region (Indonesia, Malaysia, the Philippines, Singapore, Thailand, Brunei, Burma, Cambodia, Laos and Vietnam) have surged by 7.6% year on year to 56.4 million tonnes in 2012. Thailand registered the highest growth rate of 13.9% year on year followed by Vietnam at 9.9%, and Indonesia at 8.8%. Malaysia and Philippines both registered marginal increases in steel demand of 1.7% and 2.2%, respectively, while steel demand in Singapore declined marginally during the year.
The domestic economy in India witnessed a significant slowdown during the year with certain sectors like automotive, capital goods showing a marked slowdown in demand. The moderation in the industrial growth particularly in the manufacturing sector is largely attributed to sluggish growth in investments and tighter monetary policy. Growth in services was 6.6% as compared to a growth of 8.2% in 2011-12. Amongst the key macro-economic indicators, the current account deficit is currently at a very high level which would put significant pressure on the economy especially on the currency.
In India the flat steel consumption grew by 4.3% in the fiscal, while long steel consumption grew by 4.7%. Amongst the main steel consuming sectors, the construction sector grew at around 5.9% and the consumer durables sector grew by 4.5% while the capital goods is expected to have declined significantly by around 10.1% and the automotive sector grew by 1.2%.
TATA STEEL GROUP
PERFORMANCE:
In the backdrop of a weak global economy and a challenging market situation, the gross deliveries of the Tata Steel Group at 24.1 million tonnes in 2012-13 were almost at the similar levels as the previous year of 24.2 million tonnes. The turnover of the Tata Steel India operations increased by 13% primarily due to enhanced volume from the newly commissioned facilities of the 2.9 million tonnes per annum capacity expansion in Jamshedpur and enhanced product mix in the Long Products segment. However, there was a decrease in the turnover in Tata Steel Europe by 15% (in its reporting currency) primarily due to weaker market conditions and lower operating volume in Europe.
The consolidated profit before finance costs, depreciation, exceptional items and taxes of the Group was Rs.128000.000 Millions in the Financial Year 2012-13 lower by 9% over the previous year primarily due to lower operating performance in Europe, relatively weaker steel prices across all geographies. Consequently, the consolidated Profit before exceptional items and taxes were Rs.32570.000 Millions in the Financial Year 2012-13 compared to Rs.52230.000 Millions in the previous year.
INDIAN OPERATIONS:
The Financial Year 2012-13 marked a major milestone in operating history of Tata Steel as the capacity expansion at Jamshedpur was completed with most of the facilities of 2.9 mtpa brownfield expansion being commissioned for production. The expansion project includes the commissioning of the 6 mtpa Pellet Plant, a 3.05 mtpa Blast Furnace (I Furnace), a new LD Shop (LD#3) and the 2.54 mtpa Thin Slab Caster and Rolling (TSCR), and two new Lime Kilns (Nos. 8 and 9) (600 tpd each). The other capital projects commissioned during the Financial Year 2012-13 were the augmentation of Noamundi and Joda Iron Ore Mines and setting up of one 0.7 mtpa Coke Ovens Battery (No.10) along with the By-Product Plant.
In order to prepare for marketing the additional volume of production from the new expansion, the Company has been working on significant initiatives on the marketing front which included (a) the launch of the Astrum brand (HR coils) to serve the large SME market, (b) acquisition and expansion of large commercial accounts in tubing, cold rolling, packaging and LPG segments, (c) developing international markets for the products and (d) initiating new product development process for securing customer approvals in the automotive segment.
The Company completed the Financial Year 2012-13 with an overall increase of approximately 14% in production and sales volumes. The production of Hot Metal (8.86 million tonnes), Crude Steel (8.13 million tonnes) and Saleable Steel (7.94 million tonnes) reached their respective highest levels till date. Correspondingly, the deliveries recorded new highs at 7.48 million tonnes for the year.
There were also several best performances recorded by many of the other operating units of the Company during the Financial Year 2012-13 some of which are as follows:
a) The Ferro Alloys and Mineral Division (FAMD) achieved the highest ever Ferrochrome production (218k tonnes) and sales (223k tonnes). FAMD launched “Tata Silcomag”, India's first branded Ferro Alloy for the SME segment.
b) Global Wires achieved its highest ever total wires production of 315,000 tonnes.
c) The Tubes Division production at 391,000 tonnes and sales at 387,000 tonnes in the Financial Year 2012-13 was the highest ever. The Division developed new products like Red Oxide Pipes, Thin Organic Coated galvanised tubes and GP tubes for retail segment. Tata Pipes also won the Zee Business 'Good Home Award' 2012 in pipes category.
d) The Bearings Division commissioned a new line of Bearings – 'HUB Bearings', specifically used in passenger vehicles. The Division also inaugurated a state of art ‘testing and validation centre’ based on latest technology to meet the increasing expectations of the automotive customers. The Bearings Division production was 33.73 million numbers and sales was 32.03 million numbers in the Financial Year 2012-13. The Bearings Division won the ‘Economic Times – Frost and Sullivan – IMEA’ Gold Award excellence in manufacturing and supply chain, and the Bajaj Gold Consistency Award for QCD, second year in a row in the Financial Year 2012-13.
e) The Agrico Division has launched two new products ‘Seed Drill’ and ‘Cultivator’ under the Grasshopper sub brand, and has achieved its best ever sales of Rs.1620.000 Millions (a growth of ~5%) in the Financial Year 2012-13.
The Company achieved a savings of approximately Rs.16250.000 Millions by improving operational excellence through focused initiatives in the Financial Year 2012-13. The special improvement initiative ‘KVHS’ (Kar Vijay Har Shikhar – Conquer Every Peak) launched during the Financial Year 2011-12, contributed approximately Rs. 10570.000 Millions in the Financial Year 2012-13. This initiative is focused on Tata Steel’s aspiration to improve its earnings through generation of new ideas and deploying the same through a structured framework. It is a multi-unit, multi-location and a cross functional improvement programme that aims to excel across the entire value chain – from the raw materials mining to the operating units across all divisions.
Inspite of very challenging market conditions and weak steel prices in India, the Company sold an additional 850,000 tonnes during the Financial Year 2012-13. During the fourth quarter of the financial year, the Company sold around 2.2 million tones of steel that is the highest quarterly volume in the history of the Company. This was possible due to the successful ramp up of the new facilities in Jamshedpur and the marketing initiatives taken by the Company to gear up to sell the additional volume of the expanded capacity. The profit before finance costs, depreciation, exceptional items and taxes for the stand alone Tata Steel was Rs.12,028 Millions for the Financial Year 2012-13 which was marginally lower by about 3% compared to the previous financial year.
EUROPEAN OPERATIONS:
Tata Steel Europe’s (TSE) turnover for the Financial Year 2012-13 was 15% lower than the previous year. This was due to lower deliveries by about 7% compared to the previous year and a 8% lower average revenue per tonne caused by the deterioration in the market conditions and volatile currency exchange rates in the Financial Year 2012-13. The deliveries in Financial Year 2012-13 were impacted by the lower volume of production due to the rebuilding of Blast Furnace 4 (Port Talbot, United Kingdom), and hearth issues at Blast Furnace 7 in IJmuiden (Netherlands). The blast furnace #4 rebuild, was completed and the furnace was relighted in February 2013. The company continued to press forward with its structured improvement programme OGSM (Objectives Goals Strategies and Measurement) and posted significant gains from the success of this programme. The above improvement programme along with the other short-term management interventions could offset some of the adverse impact of the external market deterioration.
In order to enhance customer service levels, TSE is implementing a major ‘supply chain transformation’ project aimed at allocating customer demand in the most efficient and timely manner (thereby reducing inventory levels, reducing costs to serve, and improving delivery and availability standards), whilst at the same time improving customer service levels. The company has also been accelerating its new product development programme as 17 new products were introduced in the market.
SOUTH-EAST ASIAN
OPERATIONS:
NatSteel achieved its best ever performances in Singapore and China driven by capacity expansion in China. NatSteel’s Singapore downstream domestic sales achieved a new high of 500,000 tonnes, a 19% increase over the Financial Year 2011-12. This makes it one of the largest reinforcement solutions business in the world with an enhanced product mix of 66% value added products. Other operating entities like NatSteel Vina in Vietnam and China also showed improved performance compared to the previous year. NatSteel’s operations in Australia have also undergone a major transformation, with the restructuring of its Queensland operations in Australia.
Tata Steel Thailand (TSTH) production in the Financial Year 2012-13 at 1.167 million tonnes was at par with the previous financial year though it recorded an increase in the finished goods sales by 3% during the year. The enhanced growth in construction sector in Thailand helped in the increase of rebars sales though the wire rods product line was adversely affected by the cheaper imports from China. TSTH further strengthened its leadership position in rebars by increasing its market share from 25% to 29% and also established a stronger foothold of its brand Tata Tiscon in the regional markets of Thailand. The year also saw the launch of Seismic rebars, an earthquake resistant rebar for the first time in Thailand.
EXPANSION PROJECTS:
BROWNFIELD PROJECTS:
JAMSHEDPUR EXPANSION
PROJECT (2.9 MILLION TONNES)
Tata Steel India has completed implementation of the 2.9 mtpa expansion project at Jamshedpur Works to increase its crude steel capacity from 6.8 mtpa to 9.7 mtpa. The expansion project also entailed augmentation of Noamundi and Joda Iron Ore Mines and related facilities along with a By-Product Plant. Besides the main production units, the expansion project also included setting up the required support systems such as power, water, utilities, raw material handling and plant logistics. All the production facilities have been commissioned in phases. The facilities are currently in various stages of ramp up.
CONTINUOUS ANNEALING
AND PROCESSING LINE
Jamshedpur Continuous Annealing and Processing Company Private Limited (JCAPCPL), a joint venture company between Nippon Steel and Sumitomo Metal Corporation (NSSMC) and Tata Steel was formed in early 2012 for producing high end cold rolled coils and sheets for the Indian automotive market. It is currently undertaking the construction of a 0.6 mtpa Continuous Annealing and Processing Line (CAPL). The construction of the CAPL and all other related facilities is progressing as per schedule.
GREENFIELD PROJECT
The greenfield project execution in Odisha to produce flat steel products with an ultimate capacity of 6 mtpa in two phases has made significant progress on all fronts during the year. Major orders for all zones of the phase 1 of the project have been placed and construction work is in full swing.
The new facility coming up at Kalinganagar will augment Tata Steel’s product range to meet the changing customer needs in segments that the Company serves currently. These include Automotive, Packaging, Tubing, Construction, Appliances and Railways.
The Kalinganagar facility will also enable Tata Steel to enter and have a significant presence in segments such as Oil and Gas, Lifting and Excavation, Infrastructure, Defence, Shipbuilding, Energy, Power, etc. This will help Tata Steel to improve its market share in the domestic market in the future. The first phase is expected to be completed by 2015.
MANAGEMENT DISCUSSION
AND ANALYSIS
OVERVIEW
The following operating and financial review is intended to convey the management’s perspective on the financial condition and on the operating performance of the Company as at the end of the Financial Year 2012-13. The following discussion of the Company’s financial condition and result of operations should be read in conjunction with the Company’s financial statements, schedules and notes thereto and the other information included elsewhere in the Annual Report. The Company’s financial statements have been prepared in compliance with the requirements of the Companies Act, 1956, guidelines issued by the Securities and Exchange Board of India (SEBI) and the Generally Accepted Accounting Principles (GAAP) in India.
INDUSTRY STRUCTURE
GLOBAL STEEL
INDUSTRY:
While global industrial production in 2012 dropped to its lowest level since 2009, global steel production reached a record high of 1.55 billion tonnes, up by 1.2% as compared to 2011. The growth came mainly from Asia and North America while production in the European Union and South America decreased in 2012 compared to 2011. Global steelmakers continued to witness supply growth outpacing demand, with capacity utilisation rates remaining consistently below 80%. Subdued steel prices and a slowdown in demand growth from China continued to weigh on the global steel sector in the past year.
Annual production for Asia was 1.01 billion tonnes of crude steel in 2012, an increase of 2.6% as compared to 2011. China’s crude steel production in 2012 reached 716.5 million tonnes, an increase of 3.1% on 2011, resulting in a hike in the country’s share of world crude steel production from 45.4% in 2011 to 46.3% in 2012. The EU meanwhile recorded a decrease of 4.7% compared to 2011, producing 169.4 million tones of crude steel in 2012. Among specific countries, Germany produced 42.7 million tonnes of crude steel, a decrease of 3.7% on 2011. Italy produced 27.2 million tonnes, a 5.2% decrease over 2011. France’s crude steel production in 2012 was 15.6 million tonnes, a decrease of 1.1%. Spain produced 13.6 million tonnes of crude steel in 2012, a 12.1% decrease on 2011. In 2012, crude steel production in North America was 121.9 million tonnes, an increase of 2.5% on 2011 while that for South America was 46.9 million tonnes, a decrease of 3.0% on 2011. The US produced 88.6 million tonnes of crude steel, 2.5% higher than 2011.
The past year proved to be a challenge for the steel industry with apparent steel usage increasing at the slowest rate since 2009. The euro zone crisis persisted throughout 2012 and macro-economic pressures in major economies contributed significantly to the global slowdown. Lower industrial production and reduced investment in large scale infrastructure projects resulted in a marked decrease in the growth of steel demand from both the developed and emerging markets. Apparent global steel usage in 2012 had grown by only 1.2%. A modest pick-up in global steel demand is expected in 2013. Global apparent steel usage is forecasted to increase by 2.9% to 1.45 billion tonnes in 2013, following the slower-than-expected growth in 2012. Demand is likely to improve faster in emerging markets. Apparent steel use in China, the largest steel producer and consumer, is expected to grow by 3.5% in 2013 to 668.8 million tonnes following a 1.9% increase in 2012. There are trends of demand recovery in the property sector and the demand for infrastructure has also been strong since June, 2012. However, underlying demand in the EU is not expected to improve much in 2013 despite moderate restocking seen in the beginning of the year. Overall, steel demand is expected to remain weak due to the continuing economic crisis in the developed countries and the structural shift in the Chinese economy.
STEEL INDUSTRY IN
INDIA:
During 2012, India maintained its ranking as the 4th largest steel producing country in the world behind China, Japan and the US with a crude steel production of 76.7 million tonnes representing a 4.3% growth over 2011.
The Indian steel industry continued to showcase trends of higher consumption of finished steel and continued to be a net importer on account of increased demand for special grades of steel in the country.
As GDP growth weakened more than expected in 2012 on account of stalled investment against the backdrop of tightening policies, widening trade and fiscal deficit, high inflation and weak FDI inflows, the Financial Year 2012-13 was a year of subdued activity for steel using sectors in particular the auto segment; it is expected that 2013 will continue to remain a challenging year for the automotive sector as high interest rates and fuel expenses will continue to act as a drag on demand. However, the construction sector remained relatively resilient in 2012 and is expected to remain stable.
Steel demand has remained sluggish so far in 2013 amidst weak activity and poor sentiment; however, activity is expected to accelerate modestly in the coming months. Steel demand is expected to grow by 5.9% to 75.8 million tonnes in 2013 following 2.5% growth in 2012 as monetary easing is expected to support investment activities. Strengthening domestic consumption and improving external conditions will also help underpin the growth of steel using sectors.
UK AND EUROPEAN STEEL
INDUSTRY:
With the debt crisis having weighed heavily on economic activity, especially during the last quarter of 2012 due to continued uncertainty, apparent steel use in EU 27 during 2012 fell by 9.3% with a widening gap seen at the country level. Economic growth remained uneven among major European countries, and steel demand continued to be depressed. Most of the countries in the EU witnessed contraction in steel usage during 2012. It was not only the debt-ridden countries such as Spain and Italy that experienced a decline in apparent steel consumption, but also resilient economies such as Germany that also faced demand pressure. In particular, in Italy and Spain, the apparent steel use contracted by over 18% in 2012. Slow domestic demand in the EU was characterised by a further drop in business sentiment and intensifying financing restraints resulting in a further decline in activity in the steel using sectors with automotive and construction showing the worst trend. Export demand had also come under pressure due to the slowdown in global economic growth. The outlook for 2013 remains bleak. Steel demand in EU 27 is expected to contract further by 0.5% in 2013, but is forecasted to return to a growth of 3.3% in 2014 to reach 144.1 million tonnes. Total activity in the steel using sectors is expected to register a decline in 2013 due to the continuation of difficult operating conditions across most sectors. Domestic demand is expected to remain sluggish due to austerity, weak confidence and difficult access to finance. However, stimulus packages in major global economies, measures from the European Central Bank to contain the debt crisis and signs of stabilization in the overall economic situation are expected to improve steel outlook by late 2013 but the sentiment of uncertainty continues to dominate the market.
SOUTH EAST ASIAN
STEEL INDUSTRY:
The South East Asian region continues to show signs of economic resilience, backed by strong domestic demand. All the ASEAN member countries of SEAISI (South East Asian Iron and Steel Institute), with the exception of Singapore, registered growth rates of more than 5% in 2012. Philippines headed the pack with a strong growth rate of 6.6%, followed by Thailand (6.4%), Indonesia (6.2%), Malaysia (5.6%) and Vietnam (5.1%). Singapore, the most advanced country in the region, recorded a slow growth rate of 1.3% in 2012.
Thailand’s economy had rebounded strongly from 0.1% in 2011 to register a growth rate of 6.4% last year. As a result of the strong economic recovery in the country, Thailand’s apparent steel consumption also surged significantly in 2012, rising by 13.9% year on year (y-o-y), the highest in the region followed by Vietnam at 9.9% and Indonesia at 8.8%. Malaysia and Philippines both registered marginal increases in steel demand of 1.7% and 2.2% respectively while steel demand in Singapore declined by 4.9% y-o-y. Thailand’s total steel consumption rose from 14.5 million tonnes in 2011 to 16.6 million tonnes in 2012, driven mainly by robust demand in the construction, automotive and appliance sectors. The country continued to remain one of the top 10 steel importing countries in the world having imported a total of 15 million tonnes of steel products in 2012 while exports stagnated at 1.2 million tonnes. Import of flat products was in excess of 8.8 million tonnes.
Production in the region is estimated to have declined slightly, by 2% y-o-y to 25.5 million tonnes in 2012 as a result of a decline in steel output in most of the countries in the region, except Philippines. Imports surged significantly, by 8% y-o-y to 36.9 million tonnes in 2012 while exports from the region are estimated to have declined by 22% y-o-y to 6 million tonnes in 2012. All countries in the region except Singapore registered a decline in the volume of exports.
OUTLOOK
Global economy continues on the recovery path although the macro-economic risks have remained. The major risks of euro area breakup and sharp fiscal consolidation in the US were averted with timely political intervention. While the unemployment still remains high in the US, growth is expected to continue on the back of stronger private demand and low policy rates. Forecasts for the euro area continue to remain depressing with weakening core countries apart from the already weak peripheries. Japan is expected to move on the growth path with strong monetary easing and fiscal stimulus. China is expected to have moderation in their growth as it continues to rebalance the economy in the near future. According to the forecasts of the International Monetary Fund, the World GDP is expected to grow by 3.3% in 2013 with advanced economies growing by 1.2% and the emerging and developing economies growing by a much faster rate of 5.3%; while the euro area continues to contract mildly by 0.3%.
Steel prices bottomed out around October 2012 and increased across regions until about February 2013 when overcapacity issues and weaker demand prospects dampened the sentiment. Indian domestic steel prices, however, did not improve due to slowing demand and gradually increasing production. Prices of iron ore in the seaborne market have stabilised in the recent months while there has been a downward trend for the coking coal prices. With the reopening of more iron ore mines in Karnataka, domestic supply of iron ore is expected to increase gradually and prices are expected to fall in the domestic market.
Steel demand growth globally is expected to continue due to growth in the emerging and developing economies. As per the forecasts from World Steel Association (WSA), worldwide apparent steel demand is expected to grow by 2.9% to 1,454 mt in 2013 and by 3.2% in 2014 to 1,500 mt (following the 1.2% growth in 2012). Steel demand in China is expected to grow by 3.5% and by 2.5% in 2013 and 2014 respectively as the country tries to rebalance the growth model and gradually focuses on the service sectors. Growth in the NAFTA region is expected to be slow following the strong growth in 2012, mainly due to fiscal consolidation measures in the US. Continuing worries concerning the euro zone may reduce the steel demand by 0.5% in 2013 before growth resumes in the next year. India’s steel demand growth is projected at 5.9% and 7.0% in 2013 and 2014 respectively with expected support from the reform measures and narrowing of fiscal deficits.
FINANCE
In the context of the difficult macro-economic environment, the Company adopted a financing strategy for the year focused on two key components – (a) maintenance of a liquidity buffer for continued global operations (the total liquidity headroom of the company was Rs.166440.000 Millions as of 31st March, 2013, comprising cash and cash equivalents and undrawn lines) and (b) sustenance of leverage pressures on account of increasing volumes and capital expenditure requirements in India. With this objective, a new unsecured rupee term loan facility of Rs.20000.000 Millions tied up in March 2012 was utilised through the year while two short term commercial papers for Rs.9750.000 Millions each were issued and repaid post September 2012. The Company also issued two series of debentures – (a) non-convertible debentures worth Rs.15000.000 Millions carrying a coupon of 2% with redemption premium for a tenor of 10 years on a private placement basis in April 2012 and (b) non-convertible unsecured debentures worth Rs.10000.000 Millions carrying a coupon of 9.15% repayable in equal instalments in January 2019 and January 2021. The Company set up a buyers credit facility of Yen 1,198 mn (approx. US$15 mn) with Japan Bank for International Co-operation and The Bank of Tokyo- Mitsubishi UFJ Ltd., in September 2012. Further, the Company has also raised Rs.13000.000 Millions (SGD 300 million) in April 2013 through 4.95% senior unsecured notes due in 2023 through its wholly owned subsidiary in Singapore, Abja Investments Pte Limited. The bonds are listed on the Singapore stock exchange. The Company plans to utilise these amounts towards funding its capital expenditure requirements.
The financing initiatives of the Company have been closely linked as enablers of various operational and business requirements. This has been endorsed by multiple independent ratings agencies as reflected in their existing ratings of the Company being maintained for the year despite the declining external environment. In August 2012, Fitch reaffirmed Tata Steel Limited’s rating at BB+ while changing its outlook from “Stable” to “Negative”. The Domestic Rating of Tata Steel Limited and the loans availed from banks has been reaffirmed at AA. Short term facilities have also been reaffirmed at A+. Further, Moody’s Investors Service reaffirmed Tata Steel Limited’s Corporate Family Rating at Ba3 while changing its outlook from “Stable” to “Negative” while S and P revised Tata Steel Outlook to Negative from Stable and re-affirmed ‘BB’ Rating. The decline in the near term outlook across the agencies are due to a challenging external environment for the global steel industry. However, the Company remains geared to meet these challenges through an increased emphasis on deleveraging the balance sheet, reconfiguring capital expenditure requirements and adopting a flexible financing strategy. The full benefit of the 3 mtpa expansion in Jamshedpur is also expected to accrue in the future which will further strengthen the performance of the Company.
STANDALONE FINANCIAL RESULTS FOR THE QUARTER / SIX MONTHS ENDED ON 30TH
SEPTEMBER 2013
PART I
(Rs. In millions)
|
Particulars |
Quarter ended on 30.09.2013 |
Quarter ended on 30.06.2013 |
Six Months ended on 30.09.2013 |
|
|
Audited |
Audited |
Audited |
|
1 Income from operations |
|
|
|
|
a) Net sales / income from operations (net of excise duty) |
98259.500 |
93630.000 |
191889.500 |
|
b) Other operating income |
950.900 |
923.900 |
1874.800 |
|
Total income from operations (net) [1(a) + 1(b)] |
99210.400 |
94553.900 |
193764.300 |
|
2 Expenses |
|
|
|
|
a) Changes in inventories of finished goods, work-in-progress and stock-in-trade |
(1586.200) |
(3294.400) |
(4880.600) |
|
b) Purchases of finished, semi-finished steel & other products |
907.200 |
1430.700 |
2337.900 |
|
c) Raw materials consumed |
24139.200 |
23055.100 |
47194.300 |
|
d) Employee benefits expense |
9773.300 |
10027.800 |
19801.100 |
|
e) Purchase of power |
6568.800 |
6525.300 |
13094.100 |
|
f) Freight and handling charges |
6340.100 |
6348.200 |
12688.300 |
|
g) Depreciation and amortisation expense |
5510.300 |
4595.800 |
10106.100 |
|
h) Other expenses |
23688.800 |
22117.900 |
45806.700 |
|
Total expenses [(2(a) to 2(h)] |
75341.500 |
70806.400 |
146147.900 |
|
3. Profit / (Loss) from operations before other income, finance costs, exceptional items and tax [1-2] |
23868.900 |
23747.500 |
47616.400 |
|
4 Other income |
3256.600 |
1442.100 |
4698.700 |
|
5 Profit / (Loss) from
operations before finance costs, exceptional items and tax [3 + 4] |
27125.500 |
25189.600 |
52315.100 |
|
6 Finance costs |
4365.800 |
4664.400 |
9030.200 |
|
7 Profit / (Loss) before exceptional items
and tax [5 - 6] |
22759.700 |
20525.200 |
43284.900 |
|
8 Exceptional items : |
|
|
|
|
a) Profit on sale of non current investments |
- |
- |
- |
|
b) Provision for diminution in value of investments/doubtful advances |
- |
- |
- |
|
Total exceptional items [(8(a) + 8(b)] |
- |
- |
- |
|
9 Profit / (Loss) before tax [7 + 8 ] |
22759.700 |
20525.200 |
43284.900 |
|
10 Tax expense |
|
|
|
|
a) Current tax |
7354.600 |
6657.900 |
14012.500 |
|
b) MAT credit |
- |
- |
- |
|
c) Deferred tax |
(181.600) |
306.200 |
124.600 |
|
Total tax expense [(10(a) to 10(c)] |
7173.000 |
6964.100 |
14137.100 |
|
11 Net Profit / (Loss) for the period [9 - 10] |
15586.700 |
13561100 |
29147.800 |
|
12 Paid-up equity share capital [Face value ?10 per share] |
9714.100 |
9714.100 |
9714.100 |
|
13 Reserves excluding revaluation reserves |
|
|
148680.500 |
|
15 Debenture redemption reserve |
|
|
20460.000 |
|
14 Basic earnings per share (not annualised) - in Rupees (after exceptional items) |
15.59 |
13.51 |
29.11 |
|
15 Diluted earnings per share (not annualised) - in Rupees (after exceptional items) |
15.59 |
13.51 |
29.11 |
|
16 Net Debt equity Ratio |
|
|
0.43 |
|
17 Debt service coverage ratio |
|
|
1.47 |
|
18 Interest service coverage ratio |
|
|
6.79 |
PART II
SELECT INFORMATION FOR THE QUARTER ENDED ON 30THSEPTEMBER 2013
|
|
Quarter ended on 30.09.2013 |
Quarter ended on 30.06.2013 |
Six Months ended on 30.09.2013 |
|
A Particulars of Shareholding |
|
|
|
|
1 Aggregate of public shareholding |
|
|
|
|
Number
of shares |
640460610 |
640,850,241 |
640,850,241 |
|
% of
shareholding |
67.77% |
67.79% |
67.79% |
|
2 Promoters and promoter group shareholding |
|
|
|
|
a) Pledged / encumbered |
|
|
|
|
- Number
of shares |
20,000,000 |
20,000,000 |
20,000,000 |
|
- % of
shares to total share holding of promoter & promoter group |
6.57% |
6.57% |
6.57% |
|
- % of
shares to total share capital of the company |
2.06% |
2.06% |
2.06% |
|
b)
Non-encumbered |
|
|
|
|
- Number
of shares |
284514362 |
284,514,362 |
284,514,362 |
|
- % of
shares to total share holding of promoter & promoter group |
93.43% |
93.43% |
93.43% |
|
- % of
shares to total share capital of the company |
29.29% |
29.29% |
29.29% |
|
Particulars |
Quarter ended on 30.09.2013 |
|
B Investor complaints (Nos.) |
|
|
Pending at the beginning of the Quarter |
3 |
|
Received during the quarter |
72 |
|
Disposed off during the quarter |
51.24 |
|
Remaining unresolved at the end of the quarter |
|
STANDALONE SEGMENT REVENUE, RESULTS AND CAPITAL EMPLOYED
(Rs. In millions)
|
Particulars |
Quarter ended on 30.09.2013 |
Quarter ended on 30.06.2013 |
Six Months ended on 30.09.2013 |
|
|
Audited |
Audited |
Audited |
|
Revenue by Business
Segment: |
|
|
|
|
Steel business |
91183.300 |
89660.900 |
180844.200 |
|
Ferro Alloys and Minerals |
7953.500 |
4927.500 |
12881.000 |
|
Others |
5414.400 |
5221.200 |
10635.600 |
|
Total |
104551.200 |
99809.600 |
204360.800 |
|
Less: Inter segment revenue |
5340.800 |
5255.700 |
10596.500 |
|
Net sales / income
from operations |
99210.400 |
94553.900 |
193764.300 |
|
|
|
|
|
|
Segment results
before finance costs, exceptional items and tax: |
|
|
|
|
Steel business |
23396.700 |
24774.500 |
48171.200 |
|
Ferro Alloys and Minerals |
2098.000 |
1079.500 |
3177.500 |
|
Others |
15.200 |
75.300 |
90.500 |
|
Unallocated income / (expenditure) |
1615.600 |
(739.700) |
875.900 |
|
Total Segment results
before finance costs, exceptional items and tax |
27125.500 |
25189.600 |
52315.100 |
|
Less: Finance costs |
4365.800 |
4664.400 |
9030.200 |
|
Profit / (Loss)
before exceptional items and tax |
22759.700 |
20525.200 |
43284.900 |
|
Exceptional items: |
|
|
|
|
Profit on sale of non current investments |
- |
- |
- |
|
Provision for diminution in value of investments/doubtful advances |
- |
- |
- |
|
Profit / (Loss)
before tax |
22759.700 |
20525.200 |
43284.900 |
|
Less: Tax expense |
7173.000 |
6964.100 |
14137.100 |
|
Net Profit / (Loss) |
15586.700 |
13561.100 |
29147.800 |
|
|
|
|
|
|
Segment Capital
Employed: |
|
|
|
|
Steel business |
344089.400 |
330714.400 |
344089.400 |
|
Ferro Alloys and Minerals |
2249.900 |
2606.600 |
2249.900 |
|
Others |
2088.700 |
2250.700 |
2088.700 |
|
Unallocated |
22003.600 |
17824.300 |
22003.600 |
|
Total |
370431.600 |
353396.000 |
370431.600 |
Notes:
1. The results have been reviewed by the Audit Committee in its meeting held on August 12, 2013 and were approved by the Board of Directors in its meeting of date.
2. The actuarial gains and losses on funds for employee benefits (pension plans) of Tata Steel Europe Limited for the period from April 1, 2008 have been accounted in “Reserves and Surplus” in the consolidated financial statements in accordance with IFRS/IND AS principles and as permitted by Accounting Standard 21. Had the Company recognised changes in actuarial valuations of pension plans of Tata Steel Europe in the statement of profit and loss, the consolidated profit after taxes, minority interest and share of profit of associates for the quarter ended June 30, 2013 would have been higher by Rs.8549.900 Millions and the consolidated profit after taxes, minority interest and share of profit of associates for the quarter ended June 30, 2012 would have been lower by Rs.14396.900 Millions.
3. The Committee of Directors in their meeting held on April 10, 2013 approved the scheme of amalgamation of the following subsidiaries with the Company:
(a) Kalimati Investment Company Limited with an appointed date of January 1, 2013. The Scheme is subject to the approval of the High Court of Judicature at Bombay.
(b) Tata Metaliks Limited and Tata Metaliks Kubota Pipes Limited with an appointed date of April 1, 2013. The Scheme is subject to the approval of the High Courts of Judicature at Bombay and Calcutta. The standalone results of the company for the quarter ended June 30, 2013 do not include the results of these companies.
4. Figures for the quarter ended March 31, 2013 represent the difference between the audited figures in respect of the full financial year and the published figures of nine months ended December 31, 2012.
5. Figures for the previous periods have been regrouped and reclassified to conform to the classification of the current period, where necessary.
CONTINGENT
LIABILITIES:
|
Particulars |
31.03.2013 |
31.03.2012 |
|
|
(Rs. in Millions) |
|
|
(a) Claims not acknowledged by the Company |
|
|
|
(i) Excise and Service Tax |
4662.100 |
3208.100 |
|
(ii) Customs |
137.000 |
136.900 |
|
(iii) Sales Tax and VAT |
3868.500 |
4022.900 |
|
(iv) State Levies |
2668.700 |
1497.100 |
|
(v) Suppliers and Service Contract |
775.200 |
743.100 |
|
(vi) Labour Related |
452.300 |
416.900 |
|
(vii) Income Tax |
81.100 |
179.200 |
|
(viii) Royalty |
1346.700 |
1329.600 |
|
(b) The Company has given guarantees aggregating Rs.5799.100 Millions (31.03.2012: Rs.3915.800 Millions) on behalf of
others. As at 31st March, 2013, the contingent liabilities under these
guarantees amounts to Rs.5799.100 Millions
(31.03.2012: Rs.3915.800 Millions). (c) Claim by a party arising out of conversion arrangement - Rs.1958.200 Millions (31.03.2012: Rs.1958.200 Millions). The Company has
not acknowledged this claim and has instead filed a claim of Rs.1396.500 Millions (31.03.2012: 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 (31.03.2012: 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, 2013, will be approximately Rs.2988.800
Millions (31.03.2012: Rs.2988.800 Millions). However, the
Company has already paid duty amounting to Rs.1964.800 Millions (31.03.2012:
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 Orissa challenging the validity of
the Act. Orissa 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 Orissa High Court and the case is
pending with Supreme Court. The potential liability, as of 31st March, 2013
would be approximately Rs.30064.600 Millions
(31.03.2012: Rs.20858.800 Millions). (g) In terms of the agreements entered into between Tata Teleservices
Limited (TTSL), Tata Sons Limited (TSL) and NTT DoCoMo, Inc. of Japan
(Strategic Partner-SP), the Company was given by Tata Sons an option to sell
5246590 equity shares in TTSL to the SP. Pursuant to the Rights Issue made in
2010-11, SP’s shareholding in TTSL has increased from 1172617866 equity
shares of Rs.10 each to 1248974378 equity shares of Rs.10 each as on 31st
March, 2013. 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 of Rs.60.000
Millions. (h) The Company has been paying royalty on coal extracted from its
quarries pursuant to the judgment 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.4134.600 Millions (31.03.2012:
Rs.3846.400 Millions) and
has been considered as a contingent liability. (i) The Company availed CENVAT credit on the invoices issued by Input
Service Distributors (ISD) i.e. by Head office and Sales offices during the
period 2006-07 to 2011-12. The Excise department issued show cause cum demand
notices disallowing Rs.2155.900 Millions
(31.03.2012: Nil) including
penalty alleging that CENVAT credit can be distributed by an office of the
manufacturer only. Accordingly, the head office can only distribute the
CENVAT credit of input services and sales offices are not authorized to issue
ISD invoices. The Company believes that as per rule any office of the
manufacturer can issue ISD invoices for availment of CENVAT credit. The
Company has filed appeals before CESTAT. (j) Billets are being sent to Stockyard for onward transfer to external
processing agents (EPA) for further manufacture on behalf of the Company.
Since this transfer is for subsequent manufacture and not for sale, excise
duty is paid on 110% of cost which is applicable for transfer of materials
directly for manufacture. Excise department, Jamshedpur issued show cause
notices demanding differential duty of Rs.1095.200 Millions (31.03.2012:
Nil) including penalty for the period June 2007 to March 2012. Excise
department has considered the price of the billets sold by Steel Authority of
India (SAIL) as the price at which the duty should have been paid by the
Company. The Company is in the process of filing an appeal before CESTAT. (k) Commercial taxes department has issued demand of Rs.1383.400 Millions
by treating 30% of the stock transfers as interstate sales to unregistered
dealer and imposed tax @ 8%. The Company has filed a revision petition before
the Commissioner Commercial Taxes, Ranchi (Jharkhand) and the hearing on
merit is pending before the Commissioner Commercial Taxes, Ranchi (Jharkhand).
The potential liability, as of 31st March, 2013, is Rs.1377.000 Millions (31.03.2012: Rs.1377.000 Millions). (l) Bills discounted Rs.4695.800 Millions (31.03.2012: Rs.1747.800 Millions). |
||
FIXED ASSETS:
· Freehold Land and Roads
· Leasehold Land
· Buildings
· Leasehold Buildings
· Plant and Machinery
· Furniture and Fixtures
· Office Equipments
· Vehicles
· Railway Sidings
· Software
· Development of property
PRESS RELEASES
TATA STEEL RAIL
CONTRACT TO LINK SAUDI ARABIA’S TWO HOLY
August 08, 2013
Tata Steel has won an order to manufacture 60,000 tonnes of high-quality rail for a new high-speed line linking the two holy cities of Mecca and Medina in Saudi Arabia.
The new railway will allow millions of pilgrims to cross the 276 miles (444km) between the two cities at speeds of 200mph (320kmh). The line will cross the desert, withstanding temperatures ranging from freezing to 50oC, as well as sandstorms, flash flooding and shifting dunes.
Gérard Glas, rail sector head for Tata Steel, said: “This is a prestigious project which will see the holy cities being linked by rail for the first time.
“Tata Steel is delighted to be contributing to this high-speed line, which will have to overcome some major challenges presented by building a high-capacity rail line across some of the most extreme terrain in the world.”
Steel for the project will be made at Tata Steel’s Scunthorpe plant before being rolled into rail in lengths of 25m both there and at the company’s plant in Hayange, Northern France.
Work on producing the rail will start at the end of this year and is expected to continue throughout 2014.
Tata Steel rail has already been used successfully in similarly challenging conditions for projects in Brazil and Mauritania.
Last year, the Saudi Railways Organization awarded the contract for the final phase of completing, running and maintaining the Haramain High-Speed Rail Project to a group of Spanish infrastructure, construction and technology companies.
Haramain means ‘two holy places’ in Arabic: Mecca is the location of the revelation of the Quran and Medina is the birthplace of the Prophet Muhammad. The new line is expected to carry around 160,000 people a day — and even more during the Hajj pilgrimage. They will be transported on a fleet of 35, new, high-speed trains.
The project started in 2009, with an estimated cost of more than €12 billion. The new rail line is set to open to the public in late 2014 or early 2015.
Besides the two holy cities, the line will have three other stops, two in Jeddah for commuters and one in Saudi Arabia’s new King Abdullah Economic City, a residential, industrial and commercial macro-complex that is still being built.
Spanish construction companies Copasa, Imathia and OHL are responsible for building the line’s superstructure and the track bases, as well as for the line’s mechanisms.
TATA STEEL STRONG
TURNAROUND IN NET PROFIT FOR THE QUARTER ENDING JUNE 30, 2013
August 13, 2013
Tata Steel group today declared its consolidated financial results for the first quarter ended June 30, 2013. Group profits for the quarter were Rs 11390.000 Millions compared to a loss of Rs 65290.000 Millions in Q4 FY13 and profit of Rs 5980.000 Millions in Q1 FY13. This improvement was on the back of robust performance by the Indian operations and improved performance at the European operations.
Tata Steel group today declared its consolidated financial results for the first quarter ended June 30, 2013. Group profits for the quarter were Rs 11390.000 Millions compared to a loss of Rs 65290.000 Millions in Q4 FY13 and profit of Rs 5980.000 Millions in Q1 FY13. This improvement was on the back of robust performance by the Indian operations and improved performance at the European operations.
Group performance highlights
· Group steel deliveries in Q1 FY14 were 6.08 million tonnes versus 6.56 million tonnes in Q4 FY13, and 5.68 million tonnes in Q1 FY13.
·
· Group consolidated turnover was Rs 328050.000 Millions in Q1 FY14 compared to Rs 346500.000 Millions in Q4 FY13 and Rs 338210.000 Millions in Q1 FY13.
·
· Group EBITDA was Rs 37550.000 Millions in Q1 FY14 compared to Rs 43680.000 Millions in Q4 FY13 and Rs 35810.000 Millions in Q1 FY13.
·
· Group profit before tax for Q1 FY14 was Rs 14940.000 Millions versus a loss of Rs 55760.000 Millions in Q4 FY13 and a profit of Rs 14160.000 Millions in Q1 FY13. The Q4 FY13 loss included non-cash impairment charges of Rs 83560.000 Millions.
· Group profit after tax (after minority interest and share of profit of associates) for Q1 FY14 improved by Rs 76680.000 Millions to Rs 11390.000 Millions from the loss of Rs 65290.000 Millions in Q4 FY13. Group profit was Rs 5980.000 Millions in Q1 FY13.
· Cash and cash equivalents as on June 30, 2013, were Rs 101780.000 Millions and net debt was Rs 612890.000 Millions. Total liquidity including undrawn credit lines was Rs 171440.000 Millions.
India
The Indian operations recorded robust performance despite softer markets, weakening economic conditions and a seasonally weak quarter.
· Best-ever production was achieved for hot metal and from the thin slab casting and rolling plant, while several facilities such as LD#3, the cold rolling mill, the new bar mill and the merchant mill achieved best-ever quarterly production.
· Deliveries totalled 2 million tonnes in Q1 FY 2013-14 (Q1 FY14) compared to 1.59 million tonnes in Q1 FY 2012-13 (Q1 FY13), an increase of 25.8 percent primarily due to the ramp up of capacity at Jamshedpur. Deliveries in Q4 FY13 were 2.28 million tonnes. Q1 FY14 volumes were lower on quarter-on-quarter basis due to seasonal effects.
· Turnover in Q1 FY14 was Rs 94550.000 Millions, an increase of 6.1 percent over Q1 FY13 turnover of Rs 89080.000 Millions.
· Turnover in Q4 FY13 was Rs 107710.000 Millions. Net realisation increased in Q1 FY14 compared to Q4 FY13 across both flat and long products.
· The company’s focus on customers and strong relationships helped to increase sales across sectors, including automotive, general engineering and the SME segment. Flat product sales volume increased by 44 percent y/y with value-added products sales increasing by 15 percent. The long products segment continued to expand its retail reach and provide higher value-added products to its customers.
· On the back of strong operating performance, the Indian operations generated EBITDA of Rs 28970.000 Millions for Q1 FY14 compared to Rs 27910.000 Millions in Q1 FY13. EBITDA was Rs 37140.000 Millions in Q4 FY13. The underlying EBITDA margin in Q1 FY14 was 30.6 percent, an improvement from the underlying EBITDA margin of 29.3 percent in Q4 FY13.
· Profit after tax in Q1 FY14 was Rs 13560.000 Millions. Profit after tax was Rs 13570.000 Millions in Q1 FY13 and Rs 13090.000 Millions in Q4 FY13.
Europe
The European operations maintained the improvement in underlying performance on the back of upgrades at key production facilities at Port Talbot and Ijmuiden in Q4, which helped strengthen the operating platform.
· Deliveries totalled 3.14 million tonnes in Q1 FY14, slightly lower than the 3.21 million tonnes in Q1 FY13 largely due to soft market demand. Deliveries were 3.42 million tonnes in Q4 FY13.
· The increase in production was accompanied by an improvement of 5 percent in the proportion of differentiated products in the June quarter alone and closer relationships with global OEMs in core home and regional markets. This focus was complemented by further rigorous management of costs and cash flows.
· Turnover in Q1 FY14 was Rs 184320.000 Millions versus Rs 191660.000 Millions in Q4 FY13 and Rs 204060.000 Millions in Q1 FY13. Average revenue per tonne increased in Q1 FY14 compared to Q4 FY13.
· Q1 FY14 EBITDA was Rs 7770.000 Millions, an increase over the Q4 FY13 EBITDA of Rs 6130.000 Millions and the Rs 6200.000 Millions in Q1 FY13 due to improved core capabilities.
South East Asia
The South East Asian operations were affected by a two-month shutdown for a plant upgrade in Singapore. The profitability was also affected by the sharply narrowing spread in the region witnessed during the last quarter. The Singapore operations have resumed since August.
· Deliveries totalled 0.86 million tonne in Q1 FY14, up from 0.72 million tonne in Q1 FY13 and 0.8 million tonne in Q4 FY13.
· Volumes in China have been ramped up to a run rate of 1mtpa.
· Turnover in Q1 FY14 was Rs 39080.000 Millions compared to Rs 34860.000 Millions in Q4 FY13 and Rs 33720.000 Millions in Q1 FY13.
· Q1 FY14 EBITDA was Rs 930.000 Millions versus Q4 FY13 EBITDA of Rs 2240.000 Millions and Rs 950.000 Millions in Q1 FY13.
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 exist designating subject or any of its
beneficial owners, controlling shareholders or senior officers as terrorist or
terrorist organization or whom notice had been received that all financial
transactions involving their assets have been blocked or convicted, found
guilty or against whom a judgement or order had been entered in a proceedings
for violating money-laundering, anti-corruption or bribery or international
economic or anti-terrorism sanction laws or whose assets were seized, blocked,
frozen or ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the
property or assets of the subject are derived from criminal conduct or a
prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent
government authority for any violation of anti-corruption laws or international
anti-money laundering laws or standard.
8] Affiliation with
Government :
No
record exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our
market survey revealed that the amount of compensation sought by the subject is
fair and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs. 62.39 |
|
|
1 |
Rs. 102.06 |
|
Euro |
1 |
Rs. 84.98 |
INFORMATION DETAILS
|
Information
Gathered by : |
PLV |
|
|
|
|
Report Prepared
by : |
NKT |
SCORE and RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
9 |
|
OPERATING SCALE |
1~10 |
9 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
9 |
|
--PROFITABILIRY |
1~10 |
8 |
|
--LIQUIDITY |
1~10 |
9 |
|
--LEVERAGE |
1~10 |
9 |
|
--RESERVES |
1~10 |
9 |
|
--CREDIT LINES |
1~10 |
9 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
YES |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
DEFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
|
|
|
|
TOTAL |
|
79 |
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 |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.