1. Summary Information

Country

India

Company Name

RASHTRIYA ISPAT NIGAM LIMITED

Principal Name 1

Mr. A.P. Choudhary

Status

Good

Principal Name 2

Mr. P K Bishnoi 

Registration #

01-003404

Street Address

Administrative Building, Vishakhapatnam – 530 031, Andhra Pradesh, India

Established Date

18.02.1982

SIC Code

--

Telephone#

91-891-2518325/ 538/ 2888360/ 390/ 2888247/ 2518360

Business Style 1

Manufacturing

Fax #

91-891-2518753/ 756/ 2888316/ 2518321

Business Style 2

Marketing

Homepage

http://www.vizagsteel.com

Product Name 1

Steel Products

# of employees

Not Available

Product Name 2

--

Paid up capital

Rs.77,273,200,000/-

Product Name 3

--

Shareholders

Not Divulged

Banking

State Bank of India

Public Limited Corp.

No

Business Period

31 Years

IPO

No

International Ins.

-

Public Enterprise

No

Rating

A (67)

Related Company

Relation

Country

Company Name

CEO

Joint Ventures

--

RINMOIL Ferro Alloys Private Limited

--

Note

-

 

2. Summary Financial Statement

Balance Sheet as of

31.03.2012

(Unit: Indian Rs.)

Assets

Liabilities

Current Assets

53,412,200,000

Current Liabilities

41,192,600,000

Inventories

34,031,100,000

Long-term Liabilities

25,751,400,000

Fixed Assets

18,018,500,000

Other Liabilities

11,511,500,000

Deferred Assets

0,000

Total Liabilities

78,455,500,000

Invest& other Assets

109,586,600,000

Retained Earnings

59,319,700,000

 

 

Net Worth

136,592,900,000

Total Assets

215,048,400,000

Total Liab. & Equity

215,048,400,000

 Total Assets

(Previous Year)

190,534,500,000

 

 

P/L Statement as of

31.03.2012

(Unit: Indian Rs.)

Sales

132,510,400,000

Net Profit

7,514,600,000

Sales(Previous yr)

105,704,900,000

Net Profit(Prev.yr)

6,584,900,000

 

MIRA INFORM REPORT

 

 

Report Date :

16.09.2013

 

IDENTIFICATION DETAILS

 

Name :

RASHTRIYA ISPAT NIGAM LIMITED

 

 

Registered Office :

Administrative Building, Vishakhapatnam – 530 031, Andhra Pradesh

 

 

Country :

India

 

 

Financials (as on) :

31.03.2012

 

 

Date of Incorporation :

18.02.1982

 

 

Com. Reg. No.:

01-003404

 

 

Capital Investment / Paid-up Capital :

Rs.77273.200 Millions

 

 

CIN No.:

[Company Identification No.]

U27109AP1982GOI003404

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

VPNR00283D / VPNR00392A / VPNR00010D / VPNR00393B / VPNR00389E

 

 

Legal Form :

A Closely Held Public Limited Liability Company

 

 

Line of Business :

Manufacturing and Marketing of steel products

 

 

No. of Employees :

Not Available

 

 

RATING & COMMENTS

 

MIRA’s Rating :

A (67)

 

RATING

STATUS

PROPOSED CREDIT LINE

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

Fairly Large

 

Maximum Credit Limit :

USD 5400000

 

 

Status :

Good

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Exist

 

 

Comments :

Subject is wholly-owned company of government of India.

 

It is a well established and reputed company having a good track record.

 

The company seems to have healthy financial risk profile, comfortable capital structure and strong liquidity profile.

 

Trade relations are reported to be fair. Business is active. Payments are reported to be regular and as per commitment.

 

The company can be considered 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

Restricted

 

C2

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

AA (Long Term Fund Based Banking Limits)

Rating Explanation

Very high credit quality and very low default risk.

Date

05.04.2013

 

Rating Agency Name

FITCH

Rating

A1+ (Commercial Paper Programme)

Rating Explanation

Strong degree of safety and lowest credit risk.

Date

05.04.2013

 

 

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.

 

 

LOCATIONS

 

Registered Office :

Administrative Building, Vishakhapatnam – 530 031, Andhra Pradesh, India

Tel. No.:

91-891-2518325/ 538/ 2888360/ 390/ 2888247/ 2518360

Fax No.:

91-891-2518753/ 756/ 2888316/ 2518321

E-Mail :

cmdvsp@itpvis.ap.nic.in

rinlexp@itpvis.ap.nic.in

mtls.vsp@rmj.sprintrpg.ems.vsnl.net.in

dir.fin@vizagsteel.com

pmr.cs@vizagsteel.com

Website

http://www.vizagsteel.com

Area:

22685 sq. m.

Location:

Owned

 

 

Regional Office 1  :

1, Acharya J.C. Bose Road, Kolkata - 700 020, West Bengal, India

 

 

Regional Office 2 :

101, Free Press House, Nariman Point, Mumbai - 400 021, Maharashtra, India

 

 

Regional Office 3 :

184, Anna Salai, Chennai - 600 006, Tamilnadu, India

 

 

Regional Office 4 :

15, NBCC Tower, UG Floor, Bhikaji Cama Place, New Delhi – 110 066, India

 

 

Factory 1 :

Vishakhapatnam, District Vishakhapatnam, Andhra Pradesh, India

 

 

Factory 2 :

Jaggayyapeta, District Krishna, Andhra Pradesh, India

 

 

Factory 3 :

Madharam, District Khamman, Andhra Pradesh, India

 

 

Guest House:

1, Acharya J.C. Bose Road, Kolkata - 700 020, West Bengal, India

Tel. No.:

91-33-2242 2856 / 2242 1968 / 2334 4034 (Res.)

Fax No.:

91-33-2242 7896

 

 

Guest House:

Khanji Bhavan, 10-3-311/A, Masab Tank, Ground Floor, NMDC Building, Hyderabad - 500 028, Andhra Pradesh, India

Tel. No.:

91-40-2353 5167 / 6267 / 2406 9207 (Res.)

Fax No.:

91-40-2353 2167

 

 

Northern Region :

·         6TH Floor, Prakash Deep Building 7, Tolstoy Marg, New Delhi - 110 001, India

 

·         Block No.38/4-B, F-10 and 11, Near Punjab and Sind Bank, Friends Centre, Sanjay Place, Agra - 282 002, Delhi, India

 

·         117/L/452,Channi House, 1st Floor, Naveen Nagar, Near Double Pullia, Kanpur - 208 025, Uttar Pardesh, India

 

·         S.C.O.No.141-142, 2nd Floor, Sector 8-C, Chandigarh - 160 018, Punjab, India

 

·         SCO-3, 1st Floor, HUDA Complex,Sec-19, Mathura Road(NH-2), Faridabad - 121 001, Haryana, India

 

·         B-5, RDC, Shri Ravi Shankar Plaza, Rajnagar, Ghaziabad - 201 001 (Uttar Pradesh), India

 

·         Meghalaya Towers, 3rd Floor, Opposite  All Saint Church, C-300, Sansarvilla, MI Road, Jaipur - 302 001, Rajasthan, India

 

·         Master Chambers, 5th Floor, 19, Firoz Gandhi Market, Ludhiana - 141 001, Punjab, India

 

·         33/20,Ganapati Kunj, Circular Road Dalanwala, Dehradun-248 001, Uttarakhand, India

 

 

Eastern Region:

·         1, Acharya J.C.Bose Road, Kolkata - 700 020, West Bengal, India

 

·         IPICOL House, Annexe Building, 2nd Floor ,Janpath, Bhubaneswar - 751 022, Orissa, India

 

·         West Boring Canal Road, Patna - 800 001, Bihar, India

 

 

Western Region:

·         101, Free Press House, Free Press Journal Road, Mumbai - 400 021, Maharashtra, India

 

·         NBCC Hours, 1st Floor, Near Sahajanand College, Opposite Kamadhenu, Complex, Ambawadi, Ahmedabad - 380 015, Gujarat, India

 

·         107-109, Rafael Towers, 812,Old Palasia, Indore - 452 001, Madhya Pradesh, India

 

·         3025/8, Shreenidhi Chambers, 1st Floor, Senapati Bapat Marg, Pune - 411 016, Maharashtra, India

 

·         317, Rabindranath Tagore Road, Civil Lines, Nagpur - 440 001, Maharashtra, India

 

 

Southern Region:

·         India Garage Building, 184, Anna Salai, Chennai - 600 006, Tamilnadu, India

 

·         303, 3rd Floor, Mohan Towers, 50, Residency Road, Bangalore - 560 025, Karnataka, India

 

·         Suguna Building,1st Floor, 707,Avanashi Road, Coimbatore - 641 037, Tamilnadu, India

 

·         Chakos Tower, 2nd Floor, Padma Junction, Padma Pulleppady Road
Ernakulam, Cochin - 682 035, Kerala, India

 

·         457/1B1, Deshpande Nagar, Hubli - 580 029, Karnataka, India

 

 

Andhra Region:

·         10-3-311/a, Khanij Bhavan, NMDC Building, Hyderabad - 500 028, Andhra Pradesh, India

·         D-Block, Project Office Complex, Visakhapatnam - 530 031, Andhra Pradesh, India

 

 

By-Products Division:

D-Block, Project Office , Visakhapatnam - 530 031, Andhra Pradesh, India

 

 

Exports Division :

Marketing Department

Visakhapatnam Steel Plant Main Administrative Building, Visakhapatnam – 530 031, Andhra Pradesh, India

 

 

DIRECTORS

 

As on: 31.03.2012

 

Name :

Mr. A.P. Choudhary

Designation :

Chairman-Cum-Managing Director (w.e.f. 01.08.2011)

Address :

Kalyani Apartments, A-108, Sector – 6, Vasundhara,  Gaziabad – 201012, Andhra Pradesh, India

Date of Birth/Age :

26.12.1953

Qualification :

Post Graduate in Design Engg.

Experience :

Over all 36 years of experience out of which

1. 19 years in various positions at RSP, SAIL;

2. 13 years worked in Corporate office of SAIL.

3.Director (Projects) RINL since Aug 2009 to 31st July, 2011;

4. CMD RINL from 1st Aug, 2011 onwards.

Date of Appointment :

01.06.2009

 

 

Name :

Mr. P K Bishnoi 

Designation :

Chairman-Cum-Managing Director (upto 31.07.2011)

Address :

Steel House, Directors Bungalow , Sector – 7, Ukkunagaram, India 

Date of Birth/Age :

03.07.1951

Qualification :

1.B Tech from Indian School of Mines

2.MBA from IIM Ahmadabad

Experience :

27 years at various positions at Management level.

11 years at Board level as Director and CMD from 1.5.2007 onwards (both in Public and Private Sectors).

Date of Appointment :

01.04.2004

 

 

Name :

Mr. Umesh Chandra

Designation :

Director – (Operations)

Address :

D-1, Ukkunagaram, Vishakhapatnam, India

Date of Birth/Age :

02.07.1954

Qualification :

Graduate in Mechanical Engg

Experience :

12 years in various positions at RSP, SAIL;

20 years in various positions at RINL Director (Operations) RINL since 1st Nov 2008.

Date of Appointment :

01.11.2008

 

 

Name :

Mr. N S Rao

Designation :

Director – (Projects) (w.e.f. 19th April, 2012)

Qualification :

Bachelor's degree in Metallurgical Engineering with Honors and Master's Degree in Metallurgical Engineering from Regional Engineering College, Rourkela.

Experience :

1.He has 32 years of experience in the steel industry.

2.lecturer at Regional Engineering College, Sri Nagar

3.Research Scholar at Regional Research Laboratory, Bhubaneswar.

4.GM (O) I/c, ED( Projects and Commissioning)

5.Director (Projects) from April 19, 2012

 

 

Name :

Mr. A.P. Choudhary

Designation :

Director – (Projects)  (upto 31.07.2011)

Address :

Kalyani Apartments, A-108, Sector – 6, Vasundhara,  Gaziabad – 201012, Andhra Pradesh, India

Date of Birth/Age :

26.12.1953

Date of Appointment :

01.06.2009

 

 

Name :

Mr. P. Madhusudhan

Designation :

Director – (Finance)

Address :

D-3, Director’s Bunglow, Sector – 7, Ukkunagaram, Vishakhapatnam, India

Date of Birth/Age :

09.04.1958

Qualification :

ACA, AICWA and ACS

Experience :

24 years in various positions in BSP/SAIL

3 years as General Mgr (Finance) in IISCO,Burnpur. Director (Finance) RINL since 2nd Nov 2009.

Date of Appointment :

02.11.2009

 

 

Name :

Mr. T K Chand

Designation :

Director – (Commercial)  (w.e.f. 22nd September, 2010)

Qualification :

BA (Hons), MA (History), MA (Public Admn), BL, Certificate on Advanced Mgmt, Corporate Governance & International HR Prospective

Experience :

24 years of experience in Steel Industry in different capacities in RINL/VSP, more than 3 years as a Board Member in Central Coalfields Limited, a Subsidiary Company of Coal India Limited. Director (Commercial) RINL since 22nd Sep 2010.

 

 

Name :

Mr. Y R Reddy

Designation :

Director – (Personnel) (w.e.f. 22nd December, 2010)

Qualification :

¨MA (IRPM) with Gold Medal MBA, Andhra University Diploma in German Language

Experience :

33 years of experience in Steel Industry in different capacities in RINL/ VSP. Director (Personnel) RINL since 22nd Dec 2010.

 

 

Name :

Mr. S. Machendra Nathan

Designation :

Government Director (w.e.f. 24th May, 2010)

Address :

A-1-5, Koyembedu, South Asia Games, Vishakhapatnam, India

Date of Birth/Age :

07.03.1954

Qualification :

Post Graduate in Business Admn

Experience :

31 years in various positions in different Ministries, Govt of India

Date of Appointment :

24.05.2010

 

 

Name :

Mr. Dalip Singh

Designation :

Government Director

Address :

L-31, Nevedita Kunj, Sector – 10, R.K. Puram, New Delhi – 110022, Delhi, India

Date of Birth/Age :

09.04.1956

Qualification :

Doctorate in Management Post Graduate & M Phil in Psychology

Experience :

29 years in various positions in different Ministries, Govt of India , Director RINL

from 2nd March 2010

Date of Appointment :

07.11.2008

 

 

Name :

Mr. A P V N Sarma

Designation :

Independent Director - (w.e.f. 30th September, 2010)

Qualification :

B.E. from NIT Warangal & Law Degree from OU

Experience :

More than 35 years of experience in the top echelons of Govt of India and the State Govt in leadership positions; Director, RINL since 30th Sep 2010.

 

 

Name :

Mr. H S Chahar

Designation :

Independent Director - (w.e.f. 30th September, 2010)

Qualification :

MA (Economics)

Experience :

18 years of experience as Secretary in the Deptts of Agriculture, Transport & Commerce, Housing and Urban Dev. Steel & Mines, Forest & Environment. Director, RINL since 30th Sep 2010

 

 

Name :

Mr. Swashpawan Singh

Designation :

Independent Director - (w.e.f. 1st October, 2010)

Qualification :

BA (Hons) English; MA English Lit; Certificate Course in Diplomacy; M.Phil in Defence Studies

Experience :

More than 30 years of experience in Indian Foreign Service. Director, RINL since 1st Oct 2010

 

 

Name :

Dr. Upendra Dutta Choubey

Designation :

Independent Director - (w.e.f. 11th October, 2010)

Qualification :

M.Sc., MBA, LLB Ph. D from Indian Institute of Mines Indian Institute of Business Management

Experience :

Ex CMD GAIL More than 37 years of experience in Public Sector Enterprises. Director, RINL since 11th Oct 2010

 

 

Name :

Shri V S Jain

Designation :

Independent Director (w.e.f. 14th May, 2012)

Qualification :

Graduate degree incommerce from Delhi University Fellow member of the Institute of Chartered Accountants of India and the Institute of Cost Accountants of India.

Experience :

1. He was the chairman of SAIL from Sep, 2002 to July 2006.

2. Served at I OC Limited for 26 years in various capacities.

3. Member of Public Enterprises Selection Board from Mar 08 to July 2011.

 

 

Name :

Shri Ashhok Kumar Jain

Designation :

Independent Director (w.e.f. 14th May, 2012)

Qualification :

Fellow associate of the Institute of Chartered Accountants of India

Experience :

34 years of experience as an income tax practitioner

 

 

Name :

Professor Sushil

Designation :

Independent Director (w.e.f. 14th May,2012)

Qualification :

BE mechanical engineering and M Tech in industrial engineering from IIT Delhi. Phd from IIT Delhi in systems modelling of waste management in national planning.

Experience :

24 years of experience as a professor. Authored on topics  like core competence and flexibility in strategic formulation and flexible enterprise for global business

 

 

KEY EXECUTIVES

 

Name :

Mr. P. Mohan Rao

Designation :

Company Secretary

 

 

Name :

P.N. Rao and Company

Designation :

Company Secretaries

Address :

Flat No. 102, I Floor, Door No. 9-42 19 1, Swamy Prasad Vinayagar, Balajinagar, Siripuram, Adjacent to State Bank of India Administrative Office Main Entrance, Visakhapatnam-530 003, Andhra Pradesh, India

E-Mail :

pnraoandco@gmail.com

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

NOT DIVULGED

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturing and Marketing of steel products

 

PRODUCTION STATUS ( AS ON 31.03.2011)

 

Particulars

Unit

Installed Capacity

Actual Production

Wire Rods

Tonnes in ‘000s

850

1016

Light and Medium Merchant Products-Bar Mill

Tonnes in ‘000s

710

868

Saleable Billets

Tonnes in ‘000s

246

35

Medium Merchant Structural Mill

Tonnes in ‘000s

850

1044

 

 

 

 

Pig Iron

Tonnes in ‘000s

556

318

Granulated Slag

Tonnes in ‘000s

1440

1336

Coke Ovens By-products

Tonnes in ‘000s

186

167

 

Note: Licensed capacity not applicable in terms of Government of India notification No. S.O.477(E), dated 25Th  July, 1991.

 

 

GENERAL INFORMATION

 

Customers :

Wholesalers, Retailers, End Users, OEM’s and Others

 

 

No. of Employees :

Information declined by the management.

 

 

Bankers :
  • State Bank of India
  • Bank of Baroda
  • Canara Bank
  • State Bank of Hyderabad
  • IDBI Bank Limited
  • UCO Bank
  • Axis Bank
  • IndusInd Bank
  • HDFC Bank
  • Deutsche Bank
  • Bank of Tokyo
  • Bank of America
  • Citi Bank
  • Standard Chartered Bank
  • HSBC Bank
  • Andhra Bank
  • Vijaya Bank
  • Royal Bank of Scotland
  • Kotak Mahindra Bank Limited.
  • JP Morgan Chase Bank N.A.
  • Union Bank of India

 

 

Facilities :

(Rs. In Millions)

Secured Loan

As on

31.03.2012

As on

31.03.2011

SHORT TERM BORROWINGS

 

 

Working Capital Borrowings

(Secured by hypothecation of Current Assets)

7552.200

1966.100

Short Term Loans

(Secured by Term Deposits)

2471.800

782.800

Total

10024.000

2748.900

 

 

 

Banking Relations :

--

 

 

Statutory Auditors :

 

Name :

B. V. Rao and Company 

Chartered Accountants

Address :

Flat No. FF-01, Satyalaxmi Vinayaka Towers, H. No. 49-28-12, Madhura Nagar, Visakhapatanam -530016, Andhra Pradesh, India 

Tel. No.:

0891-2549707 / 2549561/ 2799234 / 2551827/

Mobile :

9391 03175 / 93931 00103

E-Mail :

bvraoandco@gmail.com

 

 

Cost Auditors :

 

Name :

Shri Jugal Kishore Puri

Chartered Accountant

Address :

New Delhi, India

 

 

Joint Ventures :
  • RINMOIL Ferro Alloys Private Limited
  • International Coal Ventures Private Limited

 

 

CAPITAL STRUCTURE

 

As on: 20.09.2012

 

Authorised Capital : Rs.80000.000 Millions

 

Issued, Subscribed & Paid-up Capital : Rs.62383.462 Millions

 

 

As on: 31.03.2012

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

48900000

Equity Shares

Rs.1000/- each

Rs.48900.000 Millions

31100000

Preference Shares

Rs.1000/- each

Rs.31100.000 Millions

 

Total

 

Rs.80000.000 Millions

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

48898462

Equity Shares

Rs.1000/- each

Rs.48898.500 Millions

28374700

7 % Non-Cumulative redeemable Preference Shares

Rs.1000/- each

Rs.28374.700 Millions

 

Total

 

Rs.77273.200 Millions

 

 

STATEMENT OF RECONCILIATION OF ISSUED, SUBSCRIBED AND FULLY PAID-UP SHARE CAPITAL

 

Particulars

Equity Shares

7% Non-Cumulative Redeemable Preference Shares

 

 

Number

Face Value (Rs.)

Rs. in Millions

Number

Face Value (Rs.)

Rs. in Millions

Shares outstanding as at the beginning of the year

4,88,98,462

1000

4889.85

2,93,74,700

1000

2937.47

Add : Issue of Shares

--

---

--

--

--

 

Less : Reduction of shares

--

--

--

10,00,000

1000

100.00

On Redemption

 

 

 

(0)

 

(0.00)

Shares outstanding as at the end of the year

4,88,98,462

1000

4889.85

2,83,74,700

1000

2837.47

 

 

 

DETAILS OF SHAREHOLDERS HOLDING MORE THAN 5% OF SHARE HOLDING AS AT 31.03.2012

 

Type of Shares

Name of the Shareholder

% of Shares held

No of Shares Held

Equity

President of India

100%

4,88,98,462

Preference

President of India

100%

2,83,74,700

 

 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

 

31.03.2012

31.03.2011

I.              EQUITY AND LIABILITIES

 

 

 

(1)Shareholders' Funds

 

 

 

(a) Share Capital

 

77273.200

78273.200

(b) Reserves & Surplus

 

59319.700

54019.000

(c) Money received against share warrants

 

0.000

0.000

 

 

 

 

(2) Share Application money pending allotment

 

0.000

0.000

Total Shareholders’ Funds (1) + (2)

 

136592.900

132292.200

 

 

 

 

(3) Non-Current Liabilities

 

 

 

(a) long-term borrowings

 

0.000

0.000

(b) Deferred tax liabilities (Net)

 

609.800

799.700

(c) Other long term liabilities

 

832.300

485.900

(d) long-term provisions

 

4797.300

5778.200

Total Non-current Liabilities (3)

 

6239.400

7063.800

 

 

 

 

(4) Current Liabilities

 

 

 

(a) Short term borrowings

 

25751.400

11358.800

(b) Trade payables

 

3901.900

5409.500

(c) Other current liabilities

 

36458.400

27502.500

(d) Short-term provisions

 

6104.400

6907.700

Total Current Liabilities (4)

 

72216.100

51178.500

 

 

 

 

TOTAL

 

215048.400

190534.500

 

 

 

 

II.            ASSETS

 

 

 

(1) Non-current assets

 

 

 

(a) Fixed Assets

 

 

 

(i) Tangible assets

 

17836.500

15268.900

(ii) Intangible Assets

 

31.900

30.000

(iii) Capital work-in-progress

 

105960.800

94550.100

(iv) Intangible assets under development

 

150.100

0.000

(b) Non-current Investments

 

3625.800

3616.000

(c) Deferred tax assets (net)

 

0.000

0.000

(d)  Long-term Loan and Advances

 

2418.900

2973.000

(e) Other Non-current assets

 

103.300

79.700

Total Non-Current Assets

 

130127.300

116517.700

 

 

 

 

(2) Current assets

 

 

 

(a) Current investments

 

0.000

0.000

(b) Inventories

 

34031.100

32547.100

(c) Trade receivables

 

4271.500

3302.700

(d) Cash and cash equivalents

 

20683.400

19988.900

(e) Short-term loans and advances

 

23665.400

16338.900

(f) Other current assets

 

2269.700

1839.200

Total Current Assets

 

84921.100

74016.800

 

 

 

 

TOTAL

 

215048.400

190534.500

 

SOURCES OF FUNDS

 

 

 

31.03.2010

SHAREHOLDERS FUNDS

 

 

 

1] Share Capital

 

 

78273.200

2] Share Application Money

 

 

0.000

3] Reserves & Surplus

 

 

54019.000

4] (Accumulated Losses)

 

 

0.000

NETWORTH

 

 

132292.200

LOAN FUNDS

 

 

 

1] Secured Loans

 

 

2748.900

2] Unsecured Loans

 

 

8618.700

TOTAL BORROWING

 

 

11367.600

DEFERRED TAX LIABILITIES

 

 

799.700

 

 

 

 

TOTAL

 

 

144459.500

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

 

 

15298.900

Capital work-in-progress

 

 

0.300

 

 

 

95367.100

INVESTMENT

 

 

 

DEFERREX TAX ASSETS

 

 

3616.000

 

 

 

0.000

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories
 

 

32547.100

 

Sundry Debtors
 

 

3306.100

 

Cash & Bank Balances
 

 

19988.900

 

Other Current Assets
 

 

759.600

 

Loans & Advances
 

 

19650.400

Total Current Assets
 

 

76252.100

Less : CURRENT LIABILITIES & PROVISIONS
 

 

 

 

Sundry Creditors
 

 

11176.900

 

Other Current Liabilities
 

 

21537.400

 

Provisions
 

 

13360.600

Total Current Liabilities
 

 

46074.900

Net Current Assets
 

 

30177.200

 

 

 

 

MISCELLANEOUS EXPENSES

 

 

0.000

 

 

 

 

TOTAL

 

 

144459.500

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2012

31.03.2011

31.03.2010

 

SALES

 

 

 

 

 

Income

132510.400

105704.900

98091.500

 

 

Other Income

3283.900

4259.500

7368.100

 

 

TOTAL                                     (A)

135794.300

109964.400

105459.600

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Cost of materials consumed

84722.200

71883.600

89435.900

 

 

Changes in Inventories of Semi-finished/Finished goods

453.700

(5323.200)

 

 

 

Employees' benefits

14666.700

12730.000

 

 

 

Other expenses

20059.700

17393.700

 

 

 

Prior period items - Net credit

(62.400)

(349.600)

 

 

 

Inter account adjustments-raw material mining cost

(500.300)

(491.000)

 

 

 

TOTAL                                     (B)

119339.600

95843.500

89435.900

 

 

 

 

 

Less

PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B)     (C)

16454.700

14120.900

16023.700

 

 

 

 

 

Less

FINANCIAL EXPENSES                                    (D)

1906.000

1644.900

775.500

 

 

 

 

 

 

PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D)                                       (E)

14548.700

12476.000

15248.200

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

3448.600

2659.400

2771.700

 

 

 

 

 

 

PROFIT BEFORE TAX (E-F)                              (G)

11100.100

9816.600

12476.500

 

 

 

 

 

Less

TAX                                                                  (H)

3585.500

3231.700

4509.800

 

 

 

 

 

 

PROFIT AFTER TAX (G-H)                                (I)

7514.600

6584.900

7966.700

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

24608.100

21178.300

16538.300

 

 

 

 

 

Less

APPROPRIATIONS

 

 

 

 

 

Interim Dividend

NA

0.000

1000.100

 

 

Proposed Dividend (Final)

NA

2714.700

1852.800

 

 

Tax on Interim Dividend

NA

0.000

166.100

 

 

Tax on Proposed Dividend (Final)

NA

440.400

307.700

 

BALANCE CARRIED TO THE B/S

NA

24608.100

21178.300

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

 

 

 

 

 

Export of Goods

4200.500

4209.800

3509.400

 

 

Other Earnings

1244.600

613.700

7.900

 

TOTAL EARNINGS

5445.100

4823.500

3517.300

 

 

 

 

 

 

IMPORTS

 

 

 

 

 

Raw Materials

52187.300

39667.800

26898.800

 

 

Components and Spare parts

767.200

405.600

1121.900

 

 

Capital Goods

1926.000

4428.400

7555.300

 

TOTAL IMPORTS

54880.500

44501.800

35576.000

 

 

 

 

 

 

Earnings Per Share (Rs.)

126.18

85.79

223.93

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2012

31.03.2011

31.03.2010

PAT / Total Income

(%)
5.53

5.99

7.55

 

 
 

 

 

Net Profit Margin

(PBT/Sales)

(%)
8.38

9.29

12.72

 

 
 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)
10.54

10.63

11.33

 

 
 

 

 

Return on Investment (ROI)

(PBT/Networth)

 
0.08

0.07

0.10

 

 
 

 

 

Debt Equity Ratio

(Total Debt /Networth)

 
0.19

0.09

0.09

 

 
 

 

 

Current Ratio

(Current Asset/Current Liability)

 
1.18

1.45

2.22

 

 

LOCAL AGENCY FURTHER INFORMATION

 

Sr. No.

Check List by Info Agents

Available in Report (Yes / No)

1]

Year of Establishment

Yes

2]

Locality of the firm

Yes

3]

Constitutions of the firm

Yes

4]

Premises details

No

5]

Type of Business

Yes

6]

Line of Business

Yes

7]

Promoter's background

Yes

8]

No. of employees

No

9]

Name of person contacted

No

10]

Designation of contact person

No

11]

Turnover of firm for last three years

Yes

12]

Profitability for last three years

Yes

13]

Reasons for variation <> 20%

----------------------

14]

Estimation for coming financial year

No

15]

Capital in the business

Yes

16]

Details of sister concerns

Yes

17]

Major suppliers

No

18]

Major customers

No

19]

Payments terms

No

20]

Export / Import details (if applicable)

No

21]

Market information

----------------------

22]

Litigations that the firm / promoter involved in

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

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:

 

A.P. HIGH COURT

 

WP 13614 / 2013

WPSR 69884 / 2013

CASE IS:PENDING

 

PETITIONER

 

RESPONDENT

M/S. M. KURMA RAO AND COMPANY VISAKHAPATNAM

  VS

M/S. RASHTRIYA ISPAT NIGAM LIMITED, VISAKHAPATNAM AND ANO

PET.ADV. : RAVISHANKAR RAO

 

RESP.ADV. : 

SUBJECT: CENTRAL GOVT. UNDERTAKINGS

 

DISTRICT:  VISAKHAPATNAM

 

FILING DATE:  25-04-2013

POSTING STAGE: ADMISSION (CENTRAL GOVT.)

REG. DATE    :   29-04-2013

LISTING DATE :  19-07-2013

 

HON'BLE JUDGE(S):

C.V.NAGARJUNA REDDY    

 

 

UNSECURED LOAN

(Rs. in Millions)

Particulars

As on

31.03.2012

As on

31.03.2011

SHORT TERM BORROWINGS

 

 

Working Capital Borrowings

852.500

0.000

Short Term Loans

2231.200

1851.200

Short Term Foreign currency facilities

11161.600

6758.700

Other Loans and Advances

1482.100

0.000

Total

15727.400

8609.900

 

 

YEAR 2011-12

 

In the year 2011-12, the company excelled on all fronts securing "Excellent" rating as per MOU with Government of India. A record Turnover of Rs. 144620.000 Millions was achieved in the year with a growth of 26 %.The input raw material prices continued to be on the rise compared to previous year. The prices of major raw materials viz Coking coal and Iron ore have increased by about 26% and 6% respectively. A growth of 18% that could be achieved in the Net Sales Realization per tonne of Saleable Steel, in spite of difficult market conditions and its volatility and better efficiencies achieved on the production front helped the Company to achieve a Profit After Tax of Rs. 7510.000 Millions with a growth of 14%.

 

The first phase of Expansion for almost doubling its capacity to 6.3 Million tonnes of liquid steel was brought to the stage of hot commissioning. With this expansion, RINL will be producing a higher volume of Rebars, Wire rods, Bars, Channels, Angles, Beams etc. and make the products available for use by the common man. In addition to increase in capacity, the adoption of new technologies will also help improving environmental measures, reduction in energy consumption, improvement in productivity and yield etc., thereby contributing for reducing cost of production.

 

The Company continued with many Strategic initiatives including an MOU with the Government of Andhra Pradesh for an investment of Rs. 424000.000 Millions by RINL and for facilitating allotment of mines by Government of Andhra Pradesh. Some of the mining applications filed with various State governments are in advanced stage of consideration. The Company also took an initiative for installation of Transmission Line Tower (TLT) Plant with Power Grid Corporation of India Limited (PGCIL) by signing an MOU with them while achieving good progress in the initiatives for India's second biggest Axle Plant based on an MOU with Railways and Ferro Alloy plant in Joint Venture with Manganese Ore India Limited (MOIL). The pursuit for overseas assets continued as a part of Afghan Iron and Steel Consortium and International Coal Ventures Private Limited (ICVL).

 

Production

 

The production has surpassed the rated capacity for the 10th consecutive year. The newly commissioned units are getting synchronized with existing units.

 

Best ever BF Coke production at 2.2 Mt with a growth of 4% over 2010-11.

 

Captive Power generation of 208 MW with a growth of 5% over 2010-11. This helped to reduce the import of power from State Grid by 12%.

 

Met coke improved with the reduction of 1% 2010-11, saving 5 kg coke per tonne of Hot Metal production.

 

Specific Energy Consumption improved with reduction of 1% over 2010-11. Specific Water consumption improved with the reduction of 2% over 2010-11.

 

 

Raw Material Security

 

An MOU has been signed with Government of Andhra Pradesh for an investment of Rs. 424000.000 Millions in the State by RINL for which Government of Andhra Pradesh will facilitate allotment of mines. Accordingly, the matter is being pursued at all levels and submitted 9 more applications (ML/PL) and the total number of applications made were 29 for iron ore deposits during the year (Andhra Pradesh-2, Rajasthan-3, Jharkhand- 2, Uttar Pradesh-1 and Karnataka-1). Further, the efforts for acquisition of overseas assets continued as part of International Coal Ventures Private Limited and Afghan Iron and Steel Company.

 

To attain its above endeavor of growth in phases up to 20 MTPA, RINL would need further support from Government of India, Government of Andhra Pradesh and other State Governments towards of allotment of suitable Iron ore mines and coal mines. An MOU has been signed in the month of May' 12, with NMDC for Joint Venture to install 336 KM length slurry pipeline from Jagdalpur to Visakhapatnam and around 4 MTPA capacity pellet plant at Visakhapatnam.

 

RINL has been pursuing for renewal mining leases of Orissa Mineral Development Corporation (OMDC) which has become a subsidiary of RINL consequent to acquisition of 51% stake in Eastern Investments Limited, which is the holding company of OMDC and Bisra Stone Lime Company (BSLC). OMDC has received Environmental Clearance (EC) from Ministry of Environment and Forest on 23rd July, 2012 for one of its six mines viz Kolha - Roida of 254.95 Hectare.

 

Ferro alloy being a key consumable in Steel making, a Ferro Alloy Plant is being set up at Bobbili, Andhra Pradesh along with MOIL by the way of a Joint Venture Company viz., RINMOIL Ferro Alloys Limited.

 

 

Madharam Dolomite Mine (MDM):

 

The percentage growth in respect of Production is 5.25 lakh tonnes i.e. 1.5% and Dispatch is 5.29 lakh tonnes i.e. 5.5% as compared with that of last year 2010-11. Bagged 2nd prize in Waste Dump Management during Mines Environment and Mineral Conservation week (MEMC) 2011-12.

 

 

Jaggayyapeta Limestone Mine (JLM):

 

Highest ever dispatch during the year 4.70 lakh tonnes, Highest ever drilling (19664 M) during the year highest ever monthly (Jan '12) drilling (2720 M) since inception. The Production is 4.38 lakh tonnes and percentage growth is 20.5% and Dispatch is 4.70 lakh tonnes and percentage growth is 14% as compared with that of last year 2010-11.

 

 

Garbham Manganese Mine (GMM):

 

The Dispatch during the year is 11,158 tonnes and percentage growth in respect of Dispatch is 60% as compared with that of last year 2010-11. Supplies were made in line with requirement of plant.

 

 

MANAGEMENT DISCUSSION AND ANALYSIS

 

Global Economic Environment:

 

As per International Monetary Fund (IMF) report on world economic outlook - April 2012, after suffering a major setback during 2011, global prospects are gradually strengthening again, but downside risks remain elevated. IMF report further states that Global growth is projected to drop from about 4% in 2011 to about 3.5% in 2012 because of weak activity during the second half of 2011 and the first half of 2012. Policies directed at real estate markets can accelerate the improvement of household balance sheets and thus support otherwise anaemic consumption. Emerging and developing economies continue to reap the benefits of strong macroeconomic and structural policies, but domestic vulnerabilities have been gradually building up. Many of these economies have had an unusually good run over the past decade, supported by rapid credit growth or high commodity prices.

 

 

Global Steel industry:

 

As per World Steel Association, Steel Industry directly employs more than two million people worldwide, with a further two million contractors and four million people in the supporting industries. Considering steel's position as the key product supplier to industries such as automotive, construction, transport, power and machine goods, and using a multiplier of 25:1, the steel industry is at the source of employment for more than 50 million people. World crude steel production has increased from 851 Mt in 2001 to 1,527 Mt in 2011. (It was 28.3 Mt in 1900). World average steel use per capita has steadily increased from 150 kg in 2001 to 220 kg in 2010. India, Brazil, South Korea and Turkey have all entered the top 10 steel producers list in the last 40 years.

 

Global production capacity, trade policies of countries and the regional demand-supply scenario also strongly influence the industry. Steel producers may attempt to reduce the impact of cyclicality through various measures, such as diversification of manufacturing operations to various geographies (preferably emerging markets with low-cost operations), vertical integration into raw material production, diversification of customer base and focus on value-added products etc.

 

 

Global Steel Outlook:

 

Despite a series of developments in 2011, including the European sovereign debt crisis, earthquakes in Japan, the political/social unrest in some countries of the Middle East and North African (MENA) region leading to a related surge in oil prices and the tightening of government monetary measures in many emerging economies, world steel demand achieved a growth of 5.6% in 2011.

 

Apparent steel consumption in the United States is forecast to rebound by 5.7% in 2012 and 5.6% in 2013. Consumption in the EU27, however, is expected to decrease by 1.2% in 2012, with a modest recovery of 3.3% in 2013, bringing it back to 77.0% of its 2007 level. Japan's demand for steel is expected to decline by 0.6% in 2012 due to the impact of exchange rate appreciation. In 2013, apparent steel consumption in Japan is expected to further decline by 2.2%, reaching 77.0% of its 2007 level. China, on the other hand, is expected to witness a continual growth of 4.0% in 2012 and 4.0% in 2013. India is also expected to increase its steel consumption by 6.9% in 2012 and 9.4% in 2013.

 

Emerging economies are expected to continue to drive growth. By 2013, steel use in the emerging economies is forecast to be 45.0% above 2007 levels, and will account for 73.0% of world steel demand; as opposed to 61.0% in 2007 (the above are as per WSA Report).

 

 

OUTLOOK FOR THE COMPANY IN 2012-13 :

 

The year 2012-13 is very crucial for the Company since it set its targets for the year considering the production from the Expansion Units which are likely to be commissioned during the year. The MOU signed with the Government of India envisaged a turnover of Rs. 150000.000 Millions, Production of Saleable Steel of 3.55 million tonnes with a gross margin of Rs. 13000.000 Millions for "Excellent" MoU rating.

 

The Company looks forward for a stable and sustainable growth in FY 2012-13 despite the risk of slowdown in the growth of domestic steel demand having a high correlation with growth in GDP which is showing signs of slower growth in the range of 7.5% for FY 12-13 given the likelihood of India's Economy being weighed down by higher domestic interest rates and a weaker global economy.

 

The profitability margin in the first half year of 2012-13 is likely to be impacted due to increase in inputs costs (coking coal prices) and reduced steel demand thereby putting pressure on margins for the full year.

 

The rising interest costs and the over capacity are the concerns that are likely to be there in 2012-13 resulting in pressure on the bottom-line. In case, the domestic steel demand does not grow as expected then there is a need to shift the focus to exports which again is a challenging proposition given the current slowdown in the developed world. While exports would be beneficial with depreciating rupee value vis-a-vis dollar, the imported raw materials are likely to be costlier.

 

A sharp decrease in global steel prices due to a global recession and a greater than expected slowdown in China, leading to a surge in imports due to better Indian demand, could adversely affect the profitability of domestic steel producers and might result in a negative outlook. In the process, the Company need to trade off among the influencing factors to achieve an optical profit margin.

 

 

The Key Issues for 2012-13:

 

  • The demand is likely to grow at 6% to 7% only in 2012-13 consequent to growth in construction sector and deferral of corporate capital expenditure.
  • The prices of input materials like coal etc., may be stabilized around $ 235 while the depreciating Indian Rupee may eat away the advantage of stabilized prices.
  • The Steel prices are likely to remain under pressure in 2012-13 due to subdued domestic demand and global nature of the market coupled with oversupply and weak demand in the international market.
  • Sovereign concerns in Europe may also cap global steel prices as troubled nations in Europe cut spending to contain their fiscal deficits, thus hitting demand and resulting in the profitability to have a muted growth.
  • While the depreciating rupee has discouraged Steel imports, it has also made imported raw materials more expensive.
  • The capacity addition in 2012-13 is expected to be around 30 million tonnes due to completion of brown field sites which may put pressure on steel prices resulting in reduced profitability.

 

Considering the above key issues in a dynamic environment, the Company has taken few initiatives as detailed below:

 

 

Initiatives taken by the Company:

 

  • Pursuing for Iron ore assets with various State Governments (viz AP, Jharkhand, Odisha, Karnataka, Rajasthan and Uttar Pradesh)
  • MOU with Andhra Pradesh State government for Mining assets and establishing partnership with State Mineral Development Corporations for Iron ore assets.
  • Pursuing the JV route for setting up of Steel Plants with SAIL, NMDC and BHEL
  • MOU with Power Grid Corporation of India for joint venture to produce TLT.
  • Containing / Reducing Manpower Cost per Tonne of Steel produced by (a) increasing the capacity of Plant to 6.3 Mt; (b) adding further 1 Mt with revamping, (c) adding further capacity of 4 Mt subsequently; (d) next phase of Expansion to include Bigger size Blast Furnaces and other downstream units, and (e) taking full advantage of Automation etc.,
  • To enter into Flat products business while adding more capacities and making suitable changes in product mix.
  • Wider range of products like Special steel products, CRNO,CRGO, Electrical Steels, Axles for Railways etc.,
  • MOU with NMDC.

 

 

FINANCIAL OVERVIEW :

 

For the first time, in the history of RINL sales turnover has surpassed Rs.140000.000 Millions mark. RINL has clocked Rs.144620.000 Millions sales turnover during F.Y 2011-12, an increase of over 26% compared to previous year figures despite subdued domestic demand and unending increase in raw material costs. RINL was able to achieve this feat mainly due to higher sales realisation and has thus ended the 4 year down trend streak in profit levels. RINL Profit after Tax (PAT) rose to Rs. 7510.000 Millions, an increase of Rs. 930.000 Millions i.e., over 14% increase when compared to previous year PAT.

 

Ministry of Corporate Affairs (MCA) has notified revised schedule VI of the Companies Act, 1956 with effect from April 1, 2011. As a result, the comparative figures for the previous financial year have been appropriately restated.

 

 

CONTINGENT LIABILITIES

 

Claims against the company not acknowledged as debt

(Rs. in Millions)

Particulars

As at

31st March,

2012

As at

31st March,

2011

Contractors / Suppliers / Customers

5351.400

4752.900

Local Authorities - State Govt.

372.700

232.000

Sales Tax matters *

14958.300

14683.200

Income Tax

1939.800

1513.300

Customs / Excise duty

1779.000

1695.300

R and D Cess

33.800

33.800

Others

3628.800

3261.200

 

(*) No liability is expected to arise as the movement of goods were on stock transfer and Sales Tax has been paid on eventual sales.

 

Claims in Courts in connection with Land Acquisition: - Amount not ascertainable.

 

Liability towards reimbursement of excise duty on structural works wherever applicable - Amount not ascertainable.

 

Show cause notices issued by various Government Authorities are not considered as contingent liabilities.

 

 

FIXED ASSETS:

 

  • Land
  • Plant and Equipments
  • Furniture and Fixtures
  • Locomotives
  • Vehicles
  • Electrical Installations
  • Water Supply and Sewerage systems
  • Miscellaneous Assets

 

 

AS PER WEBSITE DETAILS

 

PRESS RELEASE:

 

RINL IPO MAY NOT HAPPEN THIS FISCAL BECAUSE OF WEAK MARKETS

 

August 18, 2013

 

Hyderabad: Rashtriya Ispat Nigam Limited, the corporate entity of Vizag Steel, may not go for the proposed IPO this fiscal because of the worsened market conditions, sources said.


According to a senior official of the Ministry of Steel, the company will approach the central government to extend the 'Navratna' status until it hits the market.


"We do not expect markets to recover in the short to medium term. Market sentiment is down. In these circumstances we do not expect that the Department of Disinvestment will opt to go for IPO. Not at least until the end of this fiscal," the official told PTI on condition of anonymity.


RINL was the first PSU to tap the capital market last year. The government is aiming to mop up Rs 25000.000 Millions by divesting its stake in the company. The launch has already been deferred twice, following suggestions of the merchant bankers in view of subdued market conditions and a fire accident at Vizag Steel Plant (VSP).

Earlier, the RINL management wrote a letter to the Steel Ministry requesting deferring the IPO as employees' morale touched a low after a fire that killed 19 people, including 12 staffers.


On June 13 last year, a major explosion took place during the trial of a new oxygen control unit near the steel melting shop at VSP, resulting in fire and subsequent deaths.


On October 9, the government had indefinitely deferred its proposed initial public offer (IPO) due to differences with the merchant bankers on the price band.


The Steel Ministry official said the Department of Public Enterprises may consider extension of 'Navratna' status to Vizag Steel once again as the extension that was granted last year will expire in November.

 

 

 

CMT REPORT (Corruption, Money Laundering & Terrorism]

 

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

 

1]         INFORMATION ON DESIGNATED PARTY

No exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

 

2]         Court Declaration :

No exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

 

3]         Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

 

4]         Record on Financial Crime :

            Charges or conviction registered against subject:                                                           None

 

5]         Records on Violation of Anti-Corruption Laws :

            Charges or investigation registered against subject:                                                        None

 

6]         Records on Int’l Anti-Money Laundering Laws/Standards :

            Charges or investigation registered against subject:                                                        None

 

7]         Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

 

8]         Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

 

9]         Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

 

10]        Press Report :

            No press reports / filings exists on the subject.

 

 

CORPORATE GOVERNANCE

 

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

 

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

 

 

CONTRAVENTION

 

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.63.79

UK Pound

1

Rs.100.70

Euro

1

Rs.84.67

 

 

INFORMATION DETAILS

 

Information Gathered by :

PDT

 

 

Report Prepared by :

RAJ

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

8

PAID-UP CAPITAL

1~10

8

OPERATING SCALE

1~10

7

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

7

--PROFITABILIRY

1~10

7

--LIQUIDITY

1~10

7

--LEVERAGE

1~10

7

--RESERVES

1~10

8

--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

NO

--OTHER MERIT FACTORS

YES/NO

YES

DEFAULTER

 

 

--RBI

YES/NO

NO

--EPF

YES/NO

NO

TOTAL

 

67

 

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

 

Financial condition (40%)            Ownership background (20%)                  Payment record (10%)

Credit history (10%)                   Market trend (10%)                                Operational size (10%)

 

 

RATING EXPLANATIONS

 

 

RATING

STATUS

 

 

PROPOSED CREDIT LINE

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

 

Unlimited

71-85

Aa

Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums

 

Large

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

 

Fairly Large

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

 

Satisfactory

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

 

Small

11-25

Ca

Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity

 

Limited with full security

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

 

Credit not recommended

-

NB

                                       New Business

-

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.