MIRA INFORM REPORT
|
Report Date : |
04.09.2013 |
IDENTIFICATION DETAILS
|
Name : |
STEEL AUTHORITY OF INDIA LIMITED |
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Registered
Office : |
Ispat Bhawan, Lodhi Road, New Delhi – 110 003 |
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Country : |
India |
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Financials (as
on) : |
31.03.2013 |
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Date of
Incorporation : |
24.01.1973 |
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Com. Reg. No.: |
55-006454 |
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Capital
Investment / Paid-up Capital : |
Rs. 41305.300 Millions |
|
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CIN No.: [Company Identification
No.] |
L27109DL1973GOI006454 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
DELS20873G / DELS27448B / DELS23314E / DELS23327D / DELS22351A /
DELS21126A / DELS06268D / DELS23804E / DELS22350G / DELS22349F / DELS21127B |
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PAN No.: [Permanent Account No.] |
AAACS7062F / AAALS7062F / AAAC57062F |
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Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchanges. |
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Line of Business
: |
Manufacturer of Steel and Steel Products. |
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No. of Employees
: |
101878 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
Aa (77) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
Maximum Credit Limit : |
USD 1640000000 |
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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 a Government of India company, having excellent track
record. Directors are reported to be experienced and respectable businessmen.
Fundamentally the company appears to be strong. Trade relations are
reported as fair. Business is active. Payments are reported to be regular and
as per commitments. Company can be considered good for normal business dealings at usual
trade terms and conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – March 31st, 2013
|
Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
|
India |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
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
|
Rating Agency Name |
FITCH |
|
Rating |
AAA (Long Term Rating) |
|
Rating Explanation |
It indicates lowest expectation of default
risk. They are assigned only in cases of exceptionally strong capacity for payment
of financial commitments. This capacity is highly unlikely to be adversely
affected by foreseeable events. |
|
Date |
July, 2012 |
RBI DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter in
the publicly available RBI Defaulters’ list.
EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of
31-03-2012.
LOCATIONS
|
Registered/ Corporate Office : |
Ispat Bhawan,
Lodhi Road, New Delhi – 110003, India |
|
Tel. No.: |
91-11-24367481
(14 lines) |
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Fax No.: |
91-11-24367015 |
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E-Mail : |
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Website : |
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Factory : |
Integrated Steel Plants
· Bhilai Steel Plant, Chhattisgarh – 490001, India · Durgapur Steel Plant – 713203, West Bengal, India · Rourkela Steel Plant – 769011, Orissa, India · Bokaro Steel Plant – 827001, Jharkhand, India · P. O. Hinoo, Ranchi – 834002, Bihar, India
Special Steel
Plants
· Alloy Steel Plants, Durgapur – 713208, West Bengal, India · Salem Steel Plant – 636013, Tamilnadu, India ·
Visvesvaraya Iron and Steel Plant, Bhadravati, |
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Sail Refractory
Unit : |
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DIRECTORS
AS ON 31.03.2013
|
Name : |
Mr. C S Verma |
|
Designation : |
Chairman |
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FUNCTIONAL
DIRECTORS |
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Name : |
Mr. Anil Kumar Chaudhary |
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Designation : |
Director (Finance) |
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Name : |
Mr. S. S. Mohanty |
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Designation : |
Director (Technical and Commercial (Additional Charge)) |
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Name : |
Mr. H. S. Pati |
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Designation : |
Director (Personnel) |
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Name: |
Mr. T. S. Suresh |
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Designation : |
Director (Projects and Business Planning ) |
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Tel No.: |
91-11-24362897 |
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Name: |
Mr. Kalyan Maity |
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Designation : |
Director (Raw Materials and Logistics) |
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GOVERNMENT
DIRECTORS |
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|
Name : |
Mr. Vinod Kumar Thakral |
|
Designation : |
Additional Secretary and Financial Adviser Ministry of Steel,
Government of India |
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Name : |
Mr. Upendra Prasad Singh |
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Designation : |
Joint Secretary Ministry of Steel, Government of India |
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INDEPENDENT
DIRECTORS |
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|
Name : |
Dr. Atmanand |
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Designation : |
Independent Director |
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Name : |
Mr. A K Goswami |
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Designation : |
Independent Director |
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Name : |
Dr. Jagdish Khattar |
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Designation : |
Independent Director |
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Name : |
Prof. Subrata Chaudhuri |
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Designation : |
Independent Director |
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Name : |
Mr. P. K. Sengupta |
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Designation : |
Independent Director |
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Name : |
Mr. P. C. Jha |
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Designation : |
Independent Director |
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Name: |
Dr. Isher Judge Ahluwalia |
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Designation : |
Independent Director |
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Name: |
Mr. Sujit Banerjee |
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Designation : |
Independent Director |
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Name: |
Mr. Arun Kumar Srivastava |
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Designation : |
Independent Director |
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Name: |
J.M. Mauskar |
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Designation : |
Independent Director |
KEY EXECUTIVES
|
CHIEF EXECUTIVE
OFFICERS (PERMANENT INVITEES) |
|
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Bhilai Steel Plant : |
Mr. S. Chandrasekaran |
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IISCO Steel Plant |
Mr. N. Kothari |
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Rourkela Steel Plant : |
Mr. G. S. Prasad |
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Bokaro Steel Plant : |
Mr. Anutosh Maitra |
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Durgapur Steel Plant : |
Mr. P. K. Bajaj |
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Name: |
Mr. M.C. Jain |
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Designation : |
Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 30.06.2013
|
Category of Shareholder |
Total No. of Shares |
As
a % |
||
|
(A) Shareholding of Promoter and Promoter Group |
|
|
||
|
|
|
|
||
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|
3304293713 |
80.00 |
||
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|
3304293713 |
80.00 |
||
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|
|
|
||
|
Total shareholding of Promoter and Promoter Group (A) |
3304293713 |
80.00 |
||
|
(B) Public Shareholding |
|
|
||
|
|
|
|
||
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|
29538719 |
0.72 |
||
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|
141193457 |
3.42 |
||
|
|
296226539 |
7.17 |
||
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|
216160203 |
5.23 |
||
|
|
683118918 |
16.54 |
||
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|
|
|
||
|
|
22329601 |
0.54 |
||
|
|
|
|
||
|
|
92255440 |
2.23 |
||
|
|
19106486 |
0.46 |
||
|
|
8966946 |
0.22 |
||
|
|
5489788 |
0.13 |
||
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|
3477158 |
0.08 |
||
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|
142658473 |
3.45 |
||
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Total Public shareholding (B) |
825777391 |
19.99 |
||
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Total (A)+(B) |
4130071104 |
99.99 |
||
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(C) Shares held by Custodians and against which Depository Receipts have been issued |
|
|
||
|
|
0 |
0.00 |
||
|
|
454185 |
0.01 |
||
|
|
454185 |
0.01 |
||
|
Total (A)+(B)+(C) |
4130525289 |
100.00 |
||
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BUSINESS DETAILS
|
Line of Business : |
Manufacturer of Steel and Steel Products. |
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Products/ Services : |
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PRODUCTION STATUS (AS ON 31.03.2011)
|
Particulars |
Unit |
Installed Capacity |
Actual Production |
|
MAIN STEEL
PLANTS |
|
|
|
|
Pig Iron |
Tonnes |
2397000 |
260829 |
|
Crude Steel (i) |
Tonnes |
12487000 |
13453059 |
|
Saleable Steel |
Tonnes |
10740000 |
12324973 |
|
|
|
|
|
|
ALLOY STEELS
PLANTS |
|
|
|
|
Pig Iron |
Tonnes |
58000 |
2341 |
|
Crude Steel |
Tonnes |
352000 |
308733 |
|
Saleable Steel |
Tonnes |
457000 |
550238 |
NOTES:
i)
Crude Steel installed capacity is in terms of solid
steel as per International Iron and steel Institute.
ii)
"Licensed Capacity" Not applicable (N.A.)
in terms of Government of India Notification No.S.O.477 (E) dated 25th July,
1991.
GENERAL INFORMATION
|
No. of Employees : |
101878 (Approximately) |
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Bankers : |
· Allahabad Bank · Andhra Bank · Australia and New Zealand Banking Group Limited · Axis Bank Limited · Bank of America · Bank of Baroda · Bank of India · Bank of Maharashtra · Bank of Tokyo-Mitsubishi UFJ Limited · Baraclays Bank PLC · BNP Paribas · Canara Bank · Central Bank of India · Citi Bank · Corporation Bank · Credit Agricole Corporate and Investment Bank · Dena Bank · Deutsche Bank · Development Bank of Singapore · Federal Bank Limited · HDFC Bank Limited · ICICI Bank Limited · IDBI Bank · Indian Bank · Indian Overseas Bank · IndusInd Bank Limited · ING Vysya Bank Limited · Jammu and Kashmir Bank Limited · JP Chase Morgan · Kotak Mahindra Bank Limited · Mizuho Corporate Bank · Oriental Bank of Commerce · Punjab and Sind Bank · Punjab National Bank · Royal Bank of Scotland · Standard Chartered Bank · State Bank of Bikaner and Jaipur · State Bank of Hyderabad · State Bank of India · State Bank of Mysore · State Bank of Patiala · State Bank of Travancore · Sumitomo Mitsui Banking Corporation · Syndicate Bank · UCO Bank · Union Bank of India · United Bank of India · Vijaya Bank ·
Yes Bank Limited |
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Facilities : |
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Banking
Relations : |
-- |
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Statutory Auditors : |
|
|
Name : |
S.K. Mittal and
Company Chartered Accountants O.P. Totla and
Company Chartered
Accountants B.N. Misra and
Company Chartered
Accountants |
|
|
|
|
Joint Venture : |
· SAIL Bansal Service Centre Limited · Mjunction Services Limited · UEC-SAIL Information Technology Limited · Romelt SAIL (India) Limited · N.E Steel and Galvanising Private Limited · Bhilai Jaypee Cement Limited · Bokaro Jaypee Cement Limited · S and T Mining Company Private Limited · SAIL Kobe Iron India Private Limited · TMTSAL SAIL JV Limited · SAL SAIL JVC Limited |
CAPITAL STRUCTURE
AS ON 31.03.2013
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
5000000000 |
Equity Shares |
Rs.10/- each |
Rs. 50000.000 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
4130525289 |
Equity Shares |
Rs.10/- each |
Rs. 41305.300 Millions |
|
|
|
|
|
Note
(i) Reconciliation of
equity shares at the end of the year
|
Particulars |
31st March, 2013 |
|
|
Numbers |
Rs. In millions |
|
|
– Equity shares with voting rights |
|
|
|
Shares outstanding at the beginning of the year |
4129934944 |
41299.349 |
|
Shares Issued / Converted into shares with Voting Rights during the year # |
136160 |
1.362 |
|
Shares bought back during the year |
-- |
-- |
|
Shares outstanding at the end of the year |
4130071104 |
41300.711 |
|
|
|
|
|
– Equity shares without voting rights * |
|
|
|
Shares outstanding at the beginning of the year |
590345 |
5.903 |
|
Shares Issued during the year |
|
|
|
Shares Issued / Converted into shares with Voting Rights during the year # |
136160 |
1.362 |
|
Shares outstanding at the end of the year |
454185 |
4.542 |
* Represented by one Global Depository Receipt (GDR) issued @ US$ 29.55 each for an aggregate amount of US $ 125 million
# Includes 124744 shares issued to shareholders of MEL on merger with the Company and 23900 shares arising out of conversion of GDR into ordinary shares during the previous year.
(ii) All shares rank equally with regard to the repayment of capital in the event of liquidation of the Company.
(iii) The Company does not have a holding Company
(iv) Details of the
shareholders holding more than 5% of the shares in the Company
|
Particulars |
31st March, 2013 |
|
|
No. of Shares held |
% of Holding |
|
|
President of India |
3304293713 |
80.00 |
(v) 1,24,43,82,900 equity shares of Rs.10 each (net of adjustment on reduction of capital) were allotted as fully paid up for consideration other than cash
(vi) The Company has neither issued bonus shares nor has
bought back any shares during the last 5 years
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
I.
EQUITY AND LIABILITIES |
|
|
|
|
(1)Shareholders'
Funds |
|
|
|
|
(a) Share Capital |
41305.300 |
41305.300 |
41304.000 |
|
(b) Reserves & Surplus |
368941.100 |
356807.900 |
329390.700 |
|
(c) Money received against share warrants |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
(2) Share
Application money pending allotment |
0.000 |
0.000 |
0.0000 |
|
Total
Shareholders’ Funds (1) + (2) |
410246.400 |
398113.200 |
370694.700 |
|
|
|
|
|
|
(3) Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
134855.500 |
115866.600 |
90525.600 |
|
(b) Deferred tax liabilities (Net) |
17285.300 |
16444.800 |
14910.700 |
|
(c)
Other long term liabilities |
12711.200 |
13460.000 |
10965.200 |
|
(d)
long-term provisions |
42041.600 |
35251.900 |
31916.800 |
|
Total
Non-current Liabilities (3) |
206893.600 |
181023.300 |
148318.300 |
|
|
|
|
|
|
(4)
Current Liabilities |
|
|
|
|
(a)
Short term borrowings |
80150.200 |
45105.500 |
100032.400 |
|
(b)
Trade payables |
33220.400 |
32197.500 |
31865.400 |
|
(c)
Other current liabilities |
86547.000 |
83960.300 |
83084.600 |
|
(d)
Short-term provisions |
25127.000 |
22970.400 |
26834.500 |
|
Total
Current Liabilities (4) |
225044.600 |
184233.700 |
241816.900 |
|
|
|
|
|
|
TOTAL |
842184.600 |
763370.200 |
760829.900 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1)
Non-current assets |
|
|
|
|
(a)
Fixed Assets |
|
|
|
|
(i)
Tangible assets |
152346.300 |
157483.400 |
136890.700 |
|
(ii)
Intangible Assets |
15427.000 |
14099.300 |
13694.400 |
|
(iii)
Capital work-in-progress |
358908.500 |
280491.400 |
220753.100 |
|
(iv) Intangible assets under development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current
Investments |
7183.600 |
6850.400 |
6841.400 |
|
(c) Deferred tax assets
(net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan
and Advances |
31651.700 |
26144.300 |
16915.400 |
|
(e)
Other Non-current assets |
507.000 |
779.100 |
298.400 |
|
Total
Non-Current Assets |
566024.100 |
485847.900 |
395393.400 |
|
|
|
|
|
|
(2)
Current assets |
|
|
|
|
(a)
Current investments |
0.000 |
0.000 |
0.000 |
|
(b)
Inventories |
160082.100 |
137423.700 |
113027.900 |
|
(c)
Trade receivables |
44241.800 |
47487.700 |
41302.700 |
|
(d)
Cash and cash equivalents |
38503.500 |
64157.000 |
174800.900 |
|
(e)
Short-term loans and advances |
9906.900 |
7846.100 |
12460.900 |
|
(f)
Other current assets |
23425.500 |
20607.800 |
23844.100 |
|
Total
Current Assets |
276159.800 |
277522.300 |
365436.500 |
|
|
|
|
|
|
TOTAL |
842183.900 |
763370.200 |
760829.900 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
445982.600 |
463351.200 |
433073.600 |
|
|
|
Other Income |
9644.400 |
16294.500 |
14858.800 |
|
|
|
TOTAL (A) |
455627.000 |
479645.700 |
447932.400 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of Materials Consumed |
211984.800 |
230208.200 |
202479.100 |
|
|
|
Purchase of Stock in Trade |
32.100 |
48.800 |
42.200 |
|
|
|
Employee Benefits Expense |
86372.000 |
79320.500 |
76233.300 |
|
|
|
Other Expenses |
121608.100 |
107071.700 |
93447.000 |
|
|
|
Exceptional Items |
2293.200 |
2620.200 |
(1254.300) |
|
|
|
Adjustments pertaining to Earlier Years |
(415.300) |
105.400 |
(1037.000) |
|
|
|
Changes in Inventories of Finished Goods, Work in Progress and Stock in Trade |
(20160.900) |
(13685.100) |
(13526.700) |
|
|
|
TOTAL (B) |
401714.000 |
405689.700 |
356383.600 |
|
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) BEFORE INTEREST, TAX,
DEPRECIATION AND AMORTISATION (A-B) (C) |
53913.000 |
73956.000 |
91548.800 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
7476.600 |
6777.000 |
4747.700 |
|
|
|
|
|
|
|
|
|
|
PROFIT
/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
46436.400 |
67179.000 |
86801.100 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
14029.800 |
15670.300 |
14858.000 |
|
|
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) BEFORE TAX (E-F)
(G) |
32406.600 |
51508.700 |
71943.100 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
10703.100 |
16081.500 |
22895.700 |
|
|
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) AFTER TAX (G-H) (I) |
21703.500 |
35427.200 |
49047.400 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export of goods(Calculated on FOB basis) |
11579.500 |
12300.100 |
9804.600 |
|
|
TOTAL EARNINGS |
11579.500 |
12300.100 |
9804.600 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
128862.600 |
160738.000 |
126773.900 |
|
|
|
Stores, Spares and Components |
5083.500 |
4251.300 |
4566.200 |
|
|
|
Capital Goods |
13692.200 |
12269.600 |
23520.200 |
|
|
TOTAL IMPORTS |
147638.300 |
177258.900 |
154860.300 |
|
|
|
|
|
|
|
|
|
|
Earnings /
(Loss) Per Share (Rs.) |
5.25 |
8.58 |
11.87 |
|
QUARTERLY RESULTS
|
PARTICULARS |
|
|
30.06.2013 |
|
Type |
|
|
1st
Quarter |
|
Net Sales |
|
|
102679.100 |
|
Total Expenditure |
|
|
93006.500 |
|
PBIDT (Excl OI) |
|
|
9672.600 |
|
Other Income |
|
|
2261.700 |
|
Operating Profit |
|
|
11934.300 |
|
Interest |
|
|
1918.200 |
|
Exceptional Items |
|
|
(878.800) |
|
PBDT |
|
|
9137.300 |
|
Depreciation |
|
|
3928.500 |
|
Profit Before Tax |
|
|
5208.800 |
|
Tax |
|
|
699.700 |
|
Provisions and contingencies |
|
|
0.000 |
|
Profit After Tax |
|
|
4509.100 |
|
Extraordinary Items |
|
|
0.000 |
|
Prior Period Expenses |
|
|
0.000 |
|
Other Adjustments |
|
|
0.000 |
|
Net Profit |
|
|
4509.100 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
PAT / Total Income |
(%) |
4.76
|
7.39 |
10.95 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
7.27
|
11.12 |
16.61 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
6.81
|
10.82 |
13.49 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.08
|
0.13 |
0.19 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
0.52
|
0.40 |
0.51 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.23
|
1.51 |
1.51 |
LOCAL AGENCY FURTHER INFORMATION
|
Sr. No. |
Check List by Info Agents |
Available in
Report (Yes / No) |
|
1] |
Year of Establishment |
Yes |
|
2] |
Locality of the firm |
Yes |
|
3] |
Constitutions of the firm |
Yes |
|
4] |
Premises details |
No |
|
5] |
Type of Business |
Yes |
|
6] |
Line of Business |
Yes |
|
7] |
Promoter's background |
No |
|
8] |
No. of employees |
Yes |
|
9] |
Name of person contacted |
No |
|
10] |
Designation of contact
person |
No |
|
11] |
Turnover of firm for last
three years |
Yes |
|
12] |
Profitability for last
three years |
Yes |
|
13] |
Reasons for variation
<> 20% |
-- |
|
14] |
Estimation for coming
financial year |
No |
|
15] |
Capital in the business |
Yes |
|
16] |
Details of sister
concerns |
Yes |
|
17] |
Major suppliers |
No |
|
18] |
Major customers |
No |
|
19] |
Payments terms |
No |
|
20] |
Export / Import details
(if applicable) |
No |
|
21] |
Market information |
-- |
|
22] |
Litigations that the firm
/ promoter involved in |
Yes |
|
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 |
No |
|
32] |
PAN of Proprietor/Partner/Director,
if available |
No |
|
33] |
Voter ID No of
Proprietor/Partner/Director, if available |
No |
|
34] |
External Agency Rating,
if available |
Yes |
LITIGATION DETAILS
IN THE HIGH COURT
OF DELHI AT NEW DELHI
ITA 342/2013
COMMISSIONER OF INCOME TAX-III
..... Appellant
Through Mr. Sanjeev Rajpal, Sr. Standing Counsel.
versus
STEEL AUTHORITY OF INDIA LIMITED
..... Respondent
Through Nemo.
CORAM:
HON'BLE MR. JUSTICE SANJIV KHANNA
HON'BLE MR. JUSTICE SANJEEV SACHDEVA
O R D E R
19.07.2013
Issue notice
returnable on 11th October, 2013.
SANJIV KHANNA, J.
SANJEEV SACHDEVA,
J.
JULY 19, 2013
VKR
$ 17.
INDEX OF CHARGES
|
S.NO. |
CHARGE ID |
DATE OF CHARGE CREATION/MODIFICATION |
CHARGE AMOUNT SECURED |
CHARGE HOLDER |
ADDRESS |
SERVICE REQUEST NUMBER (SRN) |
|
1 |
10445797 |
01/08/2013 |
8,000,000,000.00 |
IDBI TRUSTEESHIP
SERVICES LIMITED |
ASIAN BUILDING,
GROUND FLOOR, 17, R. KAMANI MARG, |
B82978529 |
|
2 |
10407999 |
18/04/2013 * |
5,000,000,000.00 |
IDBI TRUSTEESHIP
SERVICES LIMITED |
ASIAN BUILDING,
GROUND FLOOR, 17, R. KAMANI MARG, |
B74443508 |
|
3 |
10395101 |
18/04/2013 * |
3,000,000,000.00 |
IDBI TRUSTEESHIP
SERVICES LIMITED |
ASIAN BLDG.,
GROUND FLOOR, 17, R.KAMANI MARG, BALLARD ESTATE, MUMBAI, MAHARASHTRA -
400001, INDIA |
B74443938 |
|
4 |
10373662 |
18/04/2013 * |
3,600,000,000.00 |
IDBI TRUSTEESHIP
SERVICES LIMITED |
ASIAN BUILDING,
GROUND FLOOR, 17, R. KAMANI MARG, |
B74444290 |
|
5 |
10322416 |
16/05/2012 * |
4,000,000,000.00 |
IDBI TRUSTEESHIP
SERVICES LIMITED |
ASIAN BUILDING,
GROUND FLOOR, 17, R. KAMANI MARG, |
B40010092 |
|
6 |
10322417 |
16/05/2012 * |
4,550,000,000.00 |
IDBI TRUSTEESHIP
SERVICES LIMITED |
ASIAN BUILDING,
GROUND FLOOR, 17, R. KAMANI MARG, |
B40013989 |
|
7 |
10229692 |
12/08/2010 * |
5,450,000,000.00 |
IDBI TRUSTEESHIP
SERVICES LIMITED |
ASIAN BUILDING,
GROUND FLOOR, 17, R. KAMANI MARG, |
A93701563 |
|
8 |
10230323 |
12/08/2010 * |
6,600,000,000.00 |
IDBI TRUSTEESHIP
SERVICES LIMITED |
ASIAN BUILDING,
GROUND FLOOR, 17, R. KAMANI MARG, |
A93700938 |
|
9 |
10209543 |
28/04/2010 * |
2,420,000,000.00 |
IDBI TRUSTEESHIP
SERVICES LIMITED |
ASIAN BUILDING,
GROUND FLOOR, 17, R. KAMANI MARG, |
A85166627 |
|
10 |
10211081 |
28/04/2010 * |
4,500,000,000.00 |
IDBI TRUSTEESHIP
SERVICES LIMITED |
ASIAN BUILDING,
GROUND FLOOR, 17, R. KAMANI MARG, |
A85166759 |
|
11 |
10207558 |
23/02/2010 |
6,000,000,000.00 |
AXIS BANK
LIMITED |
4/10, OPG HOUSE,
ASAF ALI ROAD, NEW DELHI - 110002, INDIA |
A80960453 |
|
12 |
10199378 |
16/01/2010 |
1,680,000,000.00 |
IDBI TRUSTEESHIP
SERVICES LIMITED |
ASIAN BUILDING,
GROUND FLOOR, 17, R. KAMANI MARG, |
A77846889 |
|
13 |
10199380 |
16/01/2010 |
1,500,000,000.00 |
IDBI TRUSTEESHIP
SERVICES LIMITED |
ASIAN BUILDING,
GROUND FLOOR, 17, R. KAMANI MARG, |
A77848109 |
|
14 |
10199381 |
16/01/2010 |
3,350,000,000.00 |
IDBI TRUSTEESHIP
SERVICES LIMITED |
ASIAN BUILDING, GROUND
FLOOR, 17, R. KAMANI MARG, |
A77847499 |
|
15 |
10187049 |
10/11/2009 |
1,500,000,000.00 |
IDBI TRUSTEESHIP
SERVICES LIMITED |
ASIAN BUILDING,
GROUND FLOOR, 17, R. KAMANI MARG, |
A73811770 |
|
16 |
10187050 |
10/11/2009 |
7,000,000,000.00 |
IDBI TRUSTEESHIP
SERVICES LIMITED |
ASIAN BUILDING,
GROUND FLOOR, 17, R. KAMANI MARG, |
A73812182 |
|
17 |
10187051 |
10/11/2009 |
3,000,000,000.00 |
IDBI TRUSTEESHIP
SERVICES LIMITED |
ASIAN BUILDING,
GROUND FLOOR, 17, R. KAMANI MARG, |
A73812729 |
|
18 |
10181866 |
06/10/2009 |
6,500,000,000.00 |
UNITED BANK OF
INDIA |
12/4, ASAF ALI
ROAD, NEW DELHI - 110002, INDIA |
A71934996 |
|
19 |
10178438 |
19/09/2009 |
8,250,000,000.00 |
IDBI TRUSTEESHIP
SERVICES LIMITED |
ASIAN BUILDING,
GROUND FLOOR, 17, R. KAMANI MARG, |
A70730296 |
|
20 |
10172177 |
01/05/2012 * |
5,250,000,000.00 |
IDBI TRUSTEESHIP
SERVICES LIMITED |
ASIAN BUILDING,
GROUND FLOOR, 17, R. KAMANI MARG, |
B39399712 |
|
21 |
10172179 |
01/05/2012 * |
9,500,000,000.00 |
IDBI TRUSTEESHIP
SERVICES LIMITED |
ASIAN BUILDING,
GROUND FLOOR, 17, R. KAMANI MARG, |
B39435912 |
|
22 |
10117687 |
27/03/2007 |
160,000,000.00 |
CENTRAL BANK OF
INDIA |
MOMINPUR BRANCH,
KOLKATA - 700023, WEST BENGAL, INDIA |
A24332082 |
|
23 |
80048211 |
04/07/2013 * |
135,000,000,000.00 |
STATE BANK OF
INDIA |
CORPORATE ACCOUNTS
GROUP BRANCH, JAWAHAR VYAPAR BHAWAN, 11 AND12 FLOOR, TOLSTOY MARG, NEW DELHI
- 110001, INDIA |
B82452848 |
|
24 |
80065021 |
01/05/2012 * |
582,000,000.00 |
IDBI TRUSTEESHIP
SERVICES LIMITED |
ASIAN BUILDING,
GROUND FLOOR, 17, R. KAMANI MARG, |
B39400213 |
|
25 |
90043261 |
06/07/2004 * |
65,000,000.00 |
BANK OF
MAHARASHTRA |
LEGAL
DEPARTMENT, LOKMANGAL; 1501; SHIVAJINAGAR, |
- |
|
26 |
90062090 |
06/11/2000 |
350,000,000.00 |
STATE BANK OF
BIKANER & JAIPUR |
NEW DELHI HOUSE,
BARAKHMBA ROAD, NEW DELHI, INDIA |
- |
|
27 |
90061463 |
30/05/2001 * |
622,000,000.00 |
STATE BANK OF
INDIA |
NEW DELHI, INDIA |
- |
|
28 |
90061442 |
21/03/2001 * |
6,220,000,000.00 |
STATE BANK OF
INDIA |
NEW DELHI, INDIA |
- |
|
29 |
90061118 |
10/12/2001 * |
2,000,000,000.00 |
BANK OF
MAHARASHTRA |
LOKMANGAL ,
1501, SHIVAJI NAGAR, PUNE - 411005, MAHARASHTRA, INDIA |
- |
|
30 |
80032318 |
20/12/1993 |
110,000,000.00 |
STATE BANK OF INDIA |
BOKARO STEEL
CITY BRANCH, BOKARO - 827004, JHARKHAND, INDIA |
- |
|
31 |
90263457 |
19/12/1998 * |
245,000,000.00 |
STATE BANK OF
INDIA |
BOKARO STEEL
CITY BRANCH, BOKARO - 827004, JHARKHAND, INDIA |
- |
UNSECURED LOANS
|
Unsecured Loans |
31.03.2013 |
31.03.2012 |
|
|
(Rs. In Millions) |
|
|
LONG TERM
BORROWINGS |
|
|
|
Taxable Redeemable Non-convertible Bonds |
0.000 |
160.000 |
|
Term Loans |
52663.200 |
40031.500 |
|
Others |
2042.300 |
2043.100 |
|
SHORT TERM
BORROWINGS |
|
|
|
Other Loans and
Advances |
|
|
|
Other Loans |
4000.000 |
6400.700 |
|
Commercial Paper |
0.000 |
6675.800 |
|
Foreign Currency Loans |
68838.600 |
30841.900 |
|
Total |
127544.100 |
86153.000 |
FINANCIAL REVIEW
The Company achieved a turnover of Rs.493500.000 Millions during the
Financial Year 2012-13 which was almost at the same level as that of last year
(Rs.503480.000 Millions). The profit after tax of the Company for the Financial
Year 2012-13 was Rs.21703.500 Millions compared to Rs.35427.200 Millions in the
previous Financial Year. Net profit was down largely due to the lower Net Sales
Realization resulting from a subdued market. Higher usage of external inputs
like BF Coke and pellets and higher salary and wages were other key factors
impacting profitability adversely.
SAIL continued its thrust on optimum utilisation of funds by better fund
management. This included replacement of high cost short term loans with low
cost debts, timely Repayment of loans including interest, strategic parking of
surplus funds with scheduled banks, actions for future fund raising etc. to
meet their growth objectives. Further, the Company hedged the foreign currency
risk on Buyer's Credit and repayment of External Commercial Borrowing depending
on market conditions. The Company had liquid assets of Rs.34000.000 Millions as
on 31st March, 2013 invested in short term deposits with scheduled banks
against borrowings of Rs.215970.000 Millions as on 31st March, 2013. The debt
equity ratio of the Company was 0.53:1 as on 31st March, 2013 as against 0.41:1
as on 31st March, 2012 which went up on account of increase in borrowings
during the year to fund the ongoing capital expenditure.
The net worth of the Company improved from Rs.398110.000 Millions as on
31st March, 2012 to Rs.410250.000 Millions as on 31st March, 2013 and this
helped in generation of internal resources for funding expansion plans of SAIL.
During the Financial Year 2012-13, SAIL's relentless drive to fast track its
modernization and expansion plan resulted in commissioning of projects worth
Rs. 55000.000 Millions. A capital expenditure of Rs. 97310.000 Millions was
made during the year.
The Company paid interim dividend @ 16% of the paid-up equity share
capital during the year. The Board of Directors has further recommended a final
dividend @ 4%, subject to approval of shareholders, thus making the total
dividend @ 20% of the paid up equity share capital for the Financial Year
2012-13. A sum of Rs.1630.000 Millions has been transferred to the general
reserves during the Financial Year 2012-13 (previous year Rs.2750.000
Millions).
PRODUCTION REVIEW
Notwithstanding the challenging market conditions in 2012-13 arising from
demand stagnation, the Company produced 13.4 million tones (MT) of crude steel
by operating at 103% of its capacity, marking an improvement of 1% over CPLY.
In line with its long term objective of increasing the proportion of value
added steel in the overall product basket of SAIL, the production of special
steels was scaled up to 5 MT, up by 4% over last Financial Year. Best ever
power generation of 690 MW was achieved during the Financial Year 2012-13, with
a growth of 4% over last year. Improvement was also achieved in the production
of Hot Metal, Finished Steel and Continuous Cast Steel with a growth of 1% each
over last year.
SAIL plants have taken various initiatives to enhance production
processes, by improving operational discipline and minimizing equipment
downtime. This has led to a significant improvement in operating parameters,
leading to best ever techno-economic efficiency. SAIL Plants recorded the best
ever specific energy consumption of 6.68 Gcal/tcs, an improvement of 3% over
last year. This was achieved, as production through energy efficient CC route
went up by 1% as compared to last year. Lowest ever coke rate at 512 kg/thm was
achieved, with an improvement of 1% over last year. This was possible primarily
because of higher usage of CDI (Coal Dust Injection) at 54 kg/thm as compared
to 51 kg/thm achieved last year. Best ever BF-Productivity of 1.58 T/m3/day was
achieved, with an improvement of 5% over last year, by consistent operation of
Blast furnaces at BSP, DSP
and RSP where 2%, 8% and 3% growth was achieved in BF-Productivity.
The Company has strived to enhance its product basket by developing
several new products during the year. Bhilai Steel Plant developed special soft
iron magnetic plates for the prestigious India-based Neutrino Observatory (INO)
Project of Bhabha Atomic Research Centre (BARC). Their Plants at Bokaro and
Salem started production of IS 2062 E450 and E 350 HR Coils, tailor-made for
wagons used by the Indian Railways. For the petrochemicals industry, Bhilai and
Rourkela developed a new grade of ASTM 537 plates, which finds application in
pressure vessels. Another product which caters to petrochemical industry is the
NACE quality plate developed by SAIL Bhilai. These crack-resistant plates are
ideal for transportation of gases having high Hydrogen-Sulphide content. SAIL
Bokaro came out with ultra high strength HR and CR steel with Mn-B, especially
for auto body components, thereby enhancing their presence in that sector.
Besides catering to large scale industry, their penetration also improved in
the medium and small scale industries with 31 CrV3 grade billets rolled out in
Durgapur Steel Plant for the first time in India; a product which finds a
growing market among makers of spanners and hand tools.
Several initiatives have been undertaken for implementation of R and D
Master Plan of SAIL. An exhaustive Master Plan for R and D was prepared aiming
at integrating R and D activities towards business and operational goals of the
Company. The implementation of this Master Plan; besides giving a competitive
advantage to SAIL by improving efficiencies, reducing costs, meeting market
demands and upgrading current steel technologies; will also help in gradually
increasing R and D expenditure to a level of 1% of sales turnover, which is an
international benchmark.
R and D Master Plan is envisaged to have positive impact on the existing
operations through implementation of centralized and decentralized projects.
Centralized projects consist of High Impact Projects (HIP) and Technology
Mission Projects (TMP). The projects which are of common interest to all
integrated steel Plants viz. coal and coke beneficiation, pelletisation,
environmental projects etc. will come in the category of HIP,
Development/acquisition of radically new technologies which are of strategic
importance for SAIL viz. thin strip casting and inline rolling, CRGO etc. will
be pursued through TM Projects. Under the decentralized category, all the
Plants/Units of SAIL have Centres of Excellence (CoE) in selected
areas/products. Centre of Excellence projects mainly focus on augmenting
product volume and product attribute.
Centres of Excellence have been created at all plants and RDCIS. 13
projects have been identified as CoE Projects, 2 each at BSP, RSP, ISP and SSP
and one each at BSL, DSP, ASP, VISL and RDCIS. These projects have taken shape
in terms of formulation of objective, scope, duration, budget and deliverables.
A few examples are better quality plates and rails at Bhilai, high performance
Cold Rolled Sheets at Bokaro, CRNO and API pipes at RSP etc. Three HIPs are
being pursued with specific objectives of beneficiation and pelletisation of
iron ore at mines, assimilation of new technologies for coke oven, sinter
making and blast furnace at ISP and identification of new uses of BF and BOF
sludge and slag for improving solid waste utilisation. Under the Technology
Mission (TM) projects, discussions have been initiated with technology
suppliers for acquiring technology for Thin Slab Casting and Direct Rolling
(TSCDR) and CRGO Steel production.
RAW MATERIALS
During the Financial Year 2012-13, total requirement of iron ore was met
from captive sources. The Company's captive iron ore mines produced about 21.48
million tonnes. However, in case of coking coal, around 24% requirement was met
from indigenous sources and balance through imports. During the Financial Year
2012-13, production in captive collieries of the Company was about 0.82 million
tonnes. In case of fluxes, around 1.26 million tonnes of limestone and 0.96
million tonnes of dolomite was produced resulting in total production of 2.22
million tonnes from captive sources. For thermal coal, the Company depends
entirely on purchases from Coal India Limited (CIL) except small quantity
produced from captive mines.
During the Financial Year 2012-13, the Company got the final forest
clearance for Bolani, Barsua and Stage-I forest clearance for Gua Iron Ore
Mines. Environment clearance for the capacity expansion of Gua and Bolani Iron
Ore Mines and renewal of Dhobil mine were also obtained from MoEF, Government
of India (GoI). Two mining leases of Kuteshwar Limestone mines got renewed for
further period of twenty years.
For ensuring regular supplies of iron ore, capacities of existing iron
ore mines are being expanded and new iron ore mines are being developed. In
addition, new iron ore deposits in the States of Rajasthan, Chhattisgarh, MP,
Maharashtra, Odisha and Karnataka are being explored.
For improving coking coal security, the Company is also making efforts
for development of new coking coal blocks at Tasra and Sitanala. At Tasra Coal
Block, Letter of Acceptance (LoA) has been issued to the M/s Lanco Infratech on
26th July'13 for development of 4 MTPA (ROM) coal capacity mine through open
cast mining and production of washed coal through establishing a washery of 3.5
MTPA input capacity and further, setting up of 200-300 MW Power Plant through
JV route based on secondary product available from Tasra Washery. Production is
likely to start by mid 2015 after completing pre-development activities such as
land acquisition, RandR, setting up infrastructure like Coal Handling Plant,
Heavy Earth Moving Machineries (CHP, HEMM), etc. M/s Lanco Infratech was
selected as the H-I bidder (on Net Present Value basis) for development of
Tasra coking coal block as Mine developer cum operator (MDO).
For allotment of new thermal coal blocks applications have been
submitted to Ministry of Coal, GoI and for coking coal Ministry of Coal, GoI
has been approached for allotment of 2-3 coking coal blocks under Government
dispensation route.
SALES AND
MARKETING REVIEW
· SAIL achieved a total sales volume of 11.35 million tonnes during the Financial Year 2012-13. Exports during the year at 0.368 million tonnes achieved 10.1% growth over previous year. Major categories where growth was recorded in home sales included: HR Coils: 2.1%, CR Coils/Sheets: 4.6%, GP/GC: 5.3%, Wire Rods: 1.7% and Electrical Steel Sheets: 16.8%. New were also set in supplies of Wheels to Indian Railways during the year.
· Highest ever sales of LPG grade HR Coils were achieved at 2.07 lac tonnes during the Financial Year 2012-13 registering 6.8% growth over the previous best achieved during 2011-12.
· Supplies were started to rural dealers appointed under "SAIL Rural Dealership Scheme" which was launched in the year 2011-12 with the primary objective of meeting the steel demands of the small rural consumers at block, tehsil and taluka levels. Under this scheme 562 rural dealers were appointed during the Financial Year 2012-13.
· Process for further appointments is under progress. As on 1st April, 2013 SAIL has a wide network of 2896 dealers spread over 629 districts of the country.
· The Company maintained its presence in neighbouring and traditional markets and exported 0.368 million tonnes steel during the year. DSP Blooms and Chequered Coils were exported for the first time by the Company.
AWARDS AND
ACCOLADES WON DURING THE YEAR
· The company has been conferred with "Excellent" Rating for the year 2011-12 for the 10th consecutive year.
· SAIL bagged SCOPE Award for Best Practices in Human Resource Management for the year 2011-12 presented by the Hon'ble President of India on Public Sector Day function held on 26th April'13.
·
· SAIL won 13 out of 28 Viswakarma Awards declared in the country, which is the highest for any organization amongst both private and public sector.
· SAIL employees were awarded 11 out of 32 Prime Minister's Shram Awards declared in the country. This is also the highest number for any organization amongst both private and public sector.
· Two out of the five Olympics medal winners of the country were supported by SAIL (Sushil Kumar and Yogeshwar Dutt). In recognition of SAIL's initiatives, Rashtriya Khel Protsahan Puraskar - 2012 was conferred to the Company by Hon'ble President of India.
· Indira Gandhi Rajbhasha Award for the best implementation of official language in 'A' (Hindi-speaking) region was conferred to SAIL. SAIL's Hindi magazine 'Ispat Bhasha Bharti' was also adjudged First prize winner amongst the in-house journals published in 'A' region in the country. These awards were conferred by Hon'ble President of India on Hindi Diwas i.e. 14th Sept'12.
· In the International Convention on Quality Circle 2012 held at Kuala Lumpur, Malaysia during 14th-17th October, 2012, all the six participating teams from SAIL won the highest honour (3-star awards) in their respective categories.
· SAIL was awarded CII - Sustainability Award 2012 [Certificate of Commendation], which was given by Hon'ble President of India on 14th January, 2013.
· Adjudged as most efficient and largest Maharatna employer at the Dalal Street Investment Journal PSU Awards-2012.
· SKOCH Financial Inclusion Award for 2013 for initiatives in corporate social responsibility.
· Institution of Engineers (India)- Industry Excellence Award -2012 under the award category A-"Manufacturing and Processing".
· Indira Gandhi Award (First prize) for excellence in implementation of Rajbhasha.
· 'Ispat Bhasha Bharti'- in-house Rajbhasha journal, won the first prize under the Home Ministry's All India House Journal Award Scheme.
· 'Sahasrabdi Rajbhasha Shield' from Rashtriya Hindi Academy, Rupambara, Kolkata.
· It is also noteworthy to mention that Chairman, SAIL was conferred SCOPE Award for Excellence and Outstanding contribution to the Public Sector Management - Individual Leadership Category-I (Maharatna/Navratna PSEs) for 2010-11.
BHILAI STEEL PLANT
(BSP)
· Prime Minister's Trophy for the tenth time for emerging as the best performing steel plant in the country.
· Steel Minister's Trophy for the year 2010-11 and 2008-09.
· CII-ITC Sustainability Awards-2012 - Certificate of commendation for significant achievement in its category.
BOKARO STEEL PLANT
(BSL)
· Greentech HR Awards 2013 (Gold) under the Category of Training Excellence.
· Golden Peacock National Training Award 2012 in steel sector for excellence in training practices.
· "Jharkhand CSR Award" in the category of "Regulation of Corporate Social and Environment Behaviour".
· 'Golden Peacock HR Excellence Award' for the year 2012.
DURGAPUR STEEL
PLANT (DSP)
· Certificate of Strong Commitment to Excel from CII-EXIM Bank under Business Excellence Award.
· Rajiv Gandhi National Quality Award 2011 - Certificate of Commendation.
· Greentech Safety Award 2012 (Gold) and Greentech CSR Award 2012 (Silver) in Metal and Mining Sector.
· Greentech HR Award 2013 (Silver Trophy).
ROURKELA STEEL
PLANT (RSP)
· Award for "Best Practices in Training and HRD-2012" from ISTD, Hyderabad Chapter.
· 'Greentech Environment Gold Award' in the field of eco-friendly steel making.
· Awards under three categories - Best CSR Practices, Concern for Health and Women Empowerment in the World CSR Day Global CSR Leadership and Excellence Awards.
RAW MATERIALS
DIVISION (RMD)
· "No Fatal Accident in Collieries / Mines" Award by the Annual Joint Committee on Safety, Health and Environment (JCSSI).
· National Safety Awards (Mines) won by Kalta Iron Mine for Lowest Injury Frequency Rate and by Tulsidamar and Dalli mines for Longest Accident Free period.
ALLOY STEELS PLANT
(ASP)
· Ispat Suraksha Puraskar from JCSSI for no fatalities for two consecutive years.
· Green Tech Environment Excellence (Silver) Award 2012.
SALEM STEEL PLANT
(SSP)
· Award for "Excellence in Suggestion Scheme 2012" from INSSANSIC.
· National Sustainability Award (First Prize) for the year 2011-12 from IIM, Kolkata amongst the Secondary Steel Plants / Alloy Steel Plants category.
RDCIS
· Golden Peacock Innovation Management Award for the year 2012.
BUSINESS
EXCELLENCE – INITIATIVES
ENTERPRISE
SCORECARD (ESC)
Enterprise Scorecard (ESC) of SAIL was prepared for the Financial Year
2012-13. Enterprise Scorecard not only brought integration with Memorandum of
Understanding (MoU) with Government of India and Annual Business Plan (ABP) of
the Company but also facilitated deployment of these across various leadership
levels. It facilitated deployment of organisational strategy through Strategic
Objectives and Key Initiatives. ESC 2012-13 was aligned upwards with ABP and
MOU; deployed downwards through Unit Scorecards, Functional Scorecards and
Departmental Scorecards and addressed the long term and short term issues.
Process for formulation of Enterprise Scorecard for 2013-14 has also been
commenced.
EXCELLENCE MODEL
The Company has adopted European Foundation of Quality Management (EFQM)
Model which is implemented in India through CII EXIM Bank Award for Business
Excellence. Four SAIL plants i.e. BSP, DSP, BSL and RSP participated for
CII-EXIM Bank Award for Business Excellence 2012. Three of these plants i.e.
BSP, DSP and RSP got following Recognition awards:
· BSP - Commendation award for Strong Achievement
· DSP - Commendation award for Strong Commitment to Excel
· RSP - Commendation award for Strong Commitment to Excel
TOTAL QUALITY
MANAGEMENT (TQM)
Most of their Plants and Units are certified to ISO 9000, ISO 14000,
OHSAS 18000 and SA 8000 Management Standards. During the financial year
2012-13, RSP was certified to Social Accountability Standard (SA 8000) and DSP
was certified to Information Security Standard (ISO 27000).
MANAGEMENT
DISCUSSION AND ANALYSIS REPORT
INDUSTRY STRUCTURE
and DEVELOPMENTS
WORLD ECONOMIC
ENVIRONMENT
According to IMF, World economic output declined to 3.2% in 2012 from 4%
in 2011. In its latest World Economic Outlook update, IMF projects a 3.3%
growth for 2013. The mild recovery in 2013 would be supported mainly by
emerging markets and developing economies, while growth in advanced economies
would remain flat.
Growth in the advanced economies shrunk from 1.6% in 2011 to 1.2% in
2012, mainly on account of the Euro area which is in the midst of an economic
crisis. Economic output growth in the Euro area was (-) 0.6% in 2012 and is
projected to remain subdued at (-) 0.3% in 2013. USA showed signs of recovery
with 2.2% growth in 2012 from 1.8% in 2011. Overall, growth in the advanced
economies in 2013 will remain flat at 1.2% as projected by IMF.
The emerging and developing economies also experienced lower growth of
5.1% in 2012 as against 6.4% in 2011. China which had grown at 9.3% in 2011
slowed down to 7.8% in 2012, but is expected to recover to 8% in 2013. Brazil
is expected to bounce back to 3% growth in 2013, from 0.9% in 2012. Russia
recorded 3.4% growth in 2012 as compared to 4.3% in 2011. For 2013, IMF
projects 5.3% growth for the developing and emerging economies.
Economic slowdown impacted world trade growth which slowed down to 2.5%
in 2012 in comparison to 6% in 2011. However, a recovery to 3.6% is expected in
2013 with imports and exports projected to pick up in emerging as well as
advanced economies.
WORLD STEEL
SCENARIO
World crude steel production grew at 0.7% reaching 1547 Million Tonnes
(MT) in 2012, as per World Steel Association (WSA). The growth in production,
coming mainly from Asia and North America, was considerably subdued as compared
to 7.3% growth in 2011. Japan, the second largest steel producer in the world,
after China, recorded negative 0.4% growth in crude steel production in 2012
over 2011. US produced 88.7 MT of crude steel in 2012, growing at 2.7% over
2011. Of the BRIC nations, only Brazil recorded a decline in crude steel production
in 2012 at (-) 2%; Russian and Indian crude steel production grew by 2.2% and
5.6% respectively. China accounted for 46% of the world's total crude steel
production in 2012, reaching 716.5 MT, an increase of 2% over 2011. The
European Union saw crude steel production decline by (-) 4.7% in 2012 to 169
million tonnes.
As per WSA estimates the global steel demand during 2012 grew by around
1.2% to 1413 million tonnes, moderating from a 7.3% growth in 2011. It is
expected to grow by around 3% to 1454 million tonnes in
2013.
INDIAN ECONOMIC
ENVIRONMENT
The Indian economy is going through a rough phase with GDP growth
moderating to 5% in the financial year 2012-13 as per CSO provisional
estimates. Of primary concern are the Fiscal Deficit, which although contained
at 5.1% for the financial year 2012-13, is still on the higher side, and the
Current Account Deficit (CAD). Inflation also remained on the higher side.
Industrial activity has been sluggish, growth in manufacturing has declined
further to 1% in the financial year 2012-13 while construction remained
moderated at 4.3%.
In the Union Budget 2013, the Finance Minister has laid emphasis on the
need for 'sustainable growth' backed by increase in domestic and foreign
investments. Measures such as investment allowance of 15% on investment of
Rs.1000.000 Millions or more on plant and machinery, plan for seven new cities
on Mumbai-Delhi industrial corridor and two new industrial corridors from
Chennai to Bangalore and from Bangalore to Mumbai, and the plan to develop two
new ports in West Bengal and Andhra Pradesh will have ripple effects for
heightened industrial activity, and consequently boost steel demand.
The measures envisaged in the Union Budget particularly for
infrastructure sector augur well for the steel industry.
INDIAN STEEL
SCENARIO
India maintained its ranking as the 4th largest steel producer in the
World (after China, Japan and USA) with a production of 77.6 million tones
(estimated figures) of crude steel in 2012, registering a growth rate of 5.6%
over 2011. The country has also been the largest sponge iron producer in the
world since 2002.
Finished steel demand in India, as per JPC estimates, softened as
reflected in a 3.3% growth in real consumption of finished steel during the
financial year 2012-13 to 73.3 million tonnes. The moderation in demand was
mainly due to deteriorating global and domestic growth conditions. Finished
steel production for the financial year 2012-13 at 77.6 million tonnes (JPC
provisional figures), shows a growth of 2.5% over the previous year.
The future outlook for the Indian steel industry is optimistic. The
World Steel Association has forecast a steel demand growth of 5.9% and 7% for
2013 and 2014 respectively, which is higher than the growth projected for
developed countries and China.
OUTLOOK
· The Government plans to invest around Rs.50 lakh crore (~USD 0.83 trillion) in development of physical Infrastructure during 12th Five Year Plan (2012-13 to 2016-17). This will propel growth of the Infrastructure and Construction sector, which will in turn increase steel demand.
· Union Budget 2013 lays down plans for seven new cities on Mumbai-Delhi industrial corridor and two new industrial corridors from Chennai to Bangalore and from Bangalore to Mumbai, and the plan to develop two new ports in West Bengal and Andhra Pradesh. This will have ripple effects for heightened industrial activity, and consequently boost steel demand.
· India's current per capita finished steel consumption at 57 kg is well below the world average of 217 kg. With rising Income levels expected to make steel increasingly affordable, there is vast scope for increasing per capita consumption of steel.
STATEMENT OF STANDALONE UNAUDITED FINANCIAL RESULTS FOR THE
QUARTER ENDED 30TH JUNE 2013
(Rs.
in Millions)
|
|
Quarter ended |
|
|
Sl. No |
Particulars |
30th June 2013 (Unaudited) |
|
|
(a) Net Sales /
Income from operations |
|
|
1 |
i) Gross sales |
113611.400 |
|
|
ii) Less : Excise Duty |
12550.200 |
|
|
Sub total (a) (i-ii) |
101061.200 |
|
|
(b) Other operating income |
1617.900 |
|
|
Total Income from
Operations (net) |
102679.100 |
|
|
Expenses |
|
|
2 |
a) Changes in Inventories of Finished Goods, Work in Progress |
(6109.800) |
|
|
and Stock-in-Trade |
|
|
|
b) Cost of Materials Consumed |
46672.900 |
|
|
c) Purchase of Stock in Trade |
2.800 |
|
|
d) Employee Benefits Expense |
22947.900 |
|
|
e) Power and Fuel |
11525.700 |
|
|
f) Depreciation and amortisation expenses |
3928.500 |
|
|
g) Other Expenses |
17967.000 |
|
|
Total Expenses |
96935.000 |
|
3 |
Profit from operations before other income, Finance costs and exceptional items ( 1-2) |
5744.100 |
|
|
Other Income |
|
|
4 |
i) Interest earned |
1287.300 |
|
|
ii) Other Income |
974.400 |
|
|
Sub total (i+ii) |
2261.700 |
|
5 |
Profit from ordinary activities before Finance Costs and Exceptional Items ( 3+4) |
8005.800 |
|
6 |
Finance Cost |
1918.200 |
|
7 |
Profit from ordinary
activities after Finance Costs but before Exceptional Items ( 5-6) |
6087.600 |
|
8 |
Exceptional items |
|
|
|
Foreign Exchange Loss (-)/ Gain(+) |
(878.800) |
|
9 |
Profit from
ordinary activities before tax ( 7+8) |
5208.800 |
|
10 |
Tax Expense |
|
|
|
(a) Current Tax |
1079.000 |
|
|
(b) Deferred Tax Liability / Assets ( - ) |
699.700 |
|
|
(c) MAT Credit |
(1079.000) |
|
|
(d) Earlier years |
0.000 |
|
|
Sub-Total ( a to d ) |
699.700 |
|
11 |
Net Profit from ordinary
activities after Tax ( 9-10 ) |
4509.100 |
|
12 |
Extraordinary items (net of tax expense Rs. Nil) |
0.000 |
|
13 |
Net Profit for the
period (11-12) |
4509.100 |
|
14 |
Paid up Equity Share Capital |
41305.300 |
|
|
( Face value : Rs. 10 per share ) |
|
|
15 |
Reserves (Excluding Revaluation Reserve ) as per Balance Sheet of Previous Accounting Year |
|
|
16 |
Basic and Diluted Earnings per Share (of Rs.10/- each) before and after Extraordinary Items ( Not Annualised ) ( Rupees ) |
1.09 |
|
Sl. No |
Particulars |
Quarter ended |
|
30th June2013 (Unaudited) |
||
|
A |
PARTICULARS OF
SHAREHOLDING |
|
|
1 |
Public share holding |
|
|
- Number of shares |
82,57,77,391 |
|
|
- Percentage of share holding |
19.99 |
|
|
2 |
Promoters and Promoter group shareholding |
|
|
(a) Pledged / Encumbered |
|
|
|
- Number of Shares |
|
|
|
- Percentage of shares (as a % of the total shareholding of the promoter and promoter group) |
|
|
|
- Percentage of shares (as a % of the total share capital of the company) |
|
|
|
(b) Non-Encumbered |
|
|
|
- Number of Shares |
330,42,93,713 |
|
|
- Percentage of shares (as a % of the total shareholding of the promoter and promoter group) |
100.00 |
|
|
- Percentage of shares (as a % of the total share capital of the company) |
80.00 |
|
|
Particulars |
Quarter ended 30th June 2013 |
|
B |
INVESTOR COMPLAINTS |
|
|
|
Pending at the beginning of the quarter |
0 |
|
|
Received during the quarter |
14 |
|
|
Disposed off during the quarter |
12 |
|
|
Remaining unresolved at the end of the quarter |
2 |
NOTES TO FINANCIAL RESULTS
1. The above results have been reviewed by the Audit Committee and taken on record by the Board of Directors in their Meeting held on 14th August, 2013.
2. The above results have been reviewed by the Statutory Auditors, as required under Clause 41 of the Listing Agreement.
3. The figures for the Quarter ended 31st March, 2013, are the balancing figures between the Audited figures in respect of full Financial Year ended 31st March, 2013 and the published year to date figures upto the 3rd Quarter ended 31st December, 2012.
4. The wage revision of the non-executives of the company is due w.e.f 1st January, 2012. Pending finalisation of fresh agreements, cumulative amount of Rs.7395.5 million upto the quarter ended 30th June, 2013 (for current quarter-Rs.1278.600 millions), have been provided towards Employee Benefits, on estimated basis for the period 1st January, 2012 to 30th June, 2013.
5. Net Sales include sales to Government Agencies recognised on provisional contract prices during the Quarter ended 30th June 2013: Rs.10101.600 millions (corresponding quarter of previous year: Rs.10017.500 millions) and upto 30th June, 2013: Rs.192580.700 millions (upto the corresponding quarter of previous year : Rs.157888.300 millions).
6. Pending decisions by the Honourable Supreme Court of India on levy of entry tax in the states of Chattisgarh, Odisha, and Uttar Pradesh, the entry tax demands, under dispute, of Rs.9309.500 millions, Rs.1799.100 millions and Rs.824.600 millions in respective states, have been treated as contingent liabilities.
7. Pending decision by the Honourable Supreme Court of India, on the issue of allowance of depreciation on the original value of fixed assets without reducing value of assets by Rs.25781.300 millions, consequent to waiver of loans from Steel Development Fund, the income-tax demands of Rs.876.200 millions have been treated as contingent liabilities.
8. Pending decision by the Honourable Supreme Court of India in the determination of the electricity tariff, claims of Rs.2346.400 millions made by Damodar Valley Corporation in respect of electricity supplied to one of the Plants of the Company, have been treated as contingent liabilities.
9. In accordance with Companies (Accounting Standards) Amendment Rules, 2009, relating to Accounting Standard – 11, notified on 31st March 2009 and amended from time to time, the foreign exchange fluctuation loss on long-term foreign currency loans of Rs.2714.200 millions (net debit) for the current quarter [Corresponding quarter of previous year- Rs.1345.300 millions (net debit)], has been adjusted in the carrying cost of the Fixed Assets/ Capital Work-in-progress.
10. The figures of previous periods have been re-grouped, wherever necessary, so as to conform to the current Quarters classification.
CONTINGENT
LIABILITIES:
|
PARTICULARS |
31.03.2013 |
31.03.2012 |
|
|
(Rs. in
millions) |
|
|
(i) Claims against the Company pending appellate/judicial decisions : |
|
|
|
a) Excise Duty |
11207.300 |
19254.700 |
|
b) Sales Tax on inter-state stock transfers from plants to stockyards* |
7409.400 |
7619.100 |
|
c) Other sales tax matters |
1721.900 |
1539.100 |
|
d) Income Tax |
7973.000 |
5186.800 |
|
e) Other duties, cess and levies |
21518.200 |
6458.800 |
|
f) Civil matters ** |
8316.100 |
4909.400 |
|
g) Entry Tax |
11661.800 |
9095.700 |
|
h) Miscellaneous ** |
4494.100 |
3659.100 |
|
* No liability is expected to arise, as sales tax has been paid on eventual sales. ** includes claims of Rs. 225.400 Millions (Rs.241.400 Millions), against which there are counter-claims of Rs.184.100 Millions (Rs.184.100 Millions). |
|
|
|
|
|
|
|
(ii) Other claims against the Company not acknowledged as debt: |
|
|
|
a) Sales Tax |
173.200 |
103.800 |
|
b) Duties, cess and levies |
2503.800 |
1154.700 |
|
c) Civil Matters |
230.300 |
222.000 |
|
d) Miscellaneous $ |
54987.100 |
6724.100 |
|
$ includes claims of Rs.1009.400 Millions (Rs.731.600 Millions), against which there are counter-claims of Rs.1039.500 Millions (Rs.624.200 Millions). |
|
|
|
|
|
|
|
(iii) Disputed income tax/service tax/other demand on joint venture Company for which Company may be contingently liable under the joint venture agreement |
293.300 |
361.900 |
|
|
|
|
|
(iv) Bills drawn on customers and discounted with banks |
668.900 |
1109.500 |
|
|
|
|
|
(v) Price escalation claims by contractors/suppliers and claims by certain employees, extent whereof is not ascertainable |
-- |
-- |
FIXED ASSETS:
Tangible Assets
· Freehold Land
· Leasehold Land
· Buildings
· Plant and Machinery
· Steel Plant
· Furniture and Fittings
· Vehicles
· Office Equipments
· Miscellaneous Articles
· Roads, Bridges and Culverts
· Water Supply and Sewerage
· EDP Equipments
· Railway Lines and Sidings
Intangible Assets
· Computer Software
· Mining Rights
PRESS RELEASE
LOWER PRICE, OUTDATED
TECHNOLOGY HIT SAIL’S PROFIT: VERMA
August 29, 2013
Sharp decline in steel prices, high operation cost and outdated technology are the primary reasons for lower profit of Steel Authority of India (SAIL), Steel Minister Beni Prasad Verma said on Thursday.
Profit after tax of came down to Rs. 21700.000 Millions in 2012-13 from Rs. 35430.000 Millions a year earlier, Mr. Verma said in a written question to Rajya Sabha.
Over-capacity and adverse market conditions, particularly in alloy and stainless steel, increase in prices of major inputs like coal, railway freight, power and fuel, manganese ore and royalty on minerals have also impacted the bottom line.
Besides, high fixed cost of operations of loss-making plants like Issco Steel Plant (ISP), Alloy Steels Plant (ASP), Salem Steel Plant (SSP) and Chandrapur Ferro alloy plant (CFP) was also responsible for lower profits, he said.
Sharp depreciation in the value of rupee and impact of capitalisation of modernized facilities at SSP also hit the bottom line of SAIL.
SSP’s loss widened in the last fiscal to Rs. 4200.000 Millions from Rs. 1550.000 Millions, the Minister said. ISP on the other hand minimised loss to Rs. 1590.000 Millions in 2012-13 compared to Rs. 4110.000 Millions a year earlier.
ASP registered Rs. 1200.000 Millions loss and VISL Rs. 1170.000 Millions loss last fiscal. Profit from SAIL’s raw material division also shrunk to Rs. 8130.000 Millions last fiscal from Rs. 13130.000 Millions a year ago.
SAIL has embarked on a Rs. 618700.000 Millions modernisation and expansion programme to jack up its steel production capacity to 21.4 million tonnes per annum (mtpa) from 12.8 mtpa now.
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. 66.89 |
|
|
1 |
Rs. 103.95 |
|
Euro |
1 |
Rs. 88.10 |
INFORMATION DETAILS
|
Report Prepared
by : |
MRI / BVA |
SCORE and RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
8 |
|
OPERATING SCALE |
1~10 |
9 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
9 |
|
--PROFITABILIRY |
1~10 |
9 |
|
--LIQUIDITY |
1~10 |
9 |
|
--LEVERAGE |
1~10 |
8 |
|
--RESERVES |
1~10 |
9 |
|
--CREDIT LINES |
1~10 |
8 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
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 |
|
DEFAULTERS |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
77 |
This score serves as a reference to assess
SC’s credit risk and to set the amount of credit to be extended. It is
calculated from a composite of weighted scores obtained from each of the major
sections of this report. The assessed factors and their relative weights (as
indicated through %) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend (10%) Operational size
(10%)
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
|
56-70 |
A |
Financial and operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively below
average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
- |
NB |
New Business |
- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.