MIRA
INFORM REPORT
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Report Date : |
23.04.2014 |
IDENTIFICATION DETAILS
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Name : |
STEEL AUTHORITY OF INDIA LIMITED |
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Registered
Office : |
Ispat Bhawan, Lodhi Road, New Delhi – 110003 |
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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 |
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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 (76) |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
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Maximum Credit Limit : |
USD 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. The rating derives comfort from its established position as India’s largest
integrated steel producer with captive iron ore mines, geographical diversity
of sales and comfortable liquidity position backed by healthy cash and bank
balance. Directors are reported to be experienced and respectable businessmen. Fundamental of the company seems 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 31, 2014
|
Country Name |
Previous Rating (31.12.2013) |
Current Rating (31.03.2014) |
|
India |
A1 |
A1 |
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Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
INDIAN ECONOMIC OVERVIEW
US investment bank
Goldman Sachs has upgraded its outlook on Indian markets as it expects
positive impact of the election cycle.
India’s economy may
grow 4.7 % in the current financial year, lower than the official estimate of 4.9
%, Fitch Rating said. The global rating agency expects the economy to pick up
in the next two financial years.
Global ratings
agency Standard & Poor said increasing focus by India Inc on lowering debt
is likely to improve their credit profiles.
Singapore (1.1
million Indian tourists in 2012), Thailand (one million), the United Arab
Emirates ().98 million) and Malaysia ().82 million) emerged as the preferred
holidays hotspots for Indians. The total figure is expected to increase to 1.93
million by 2017, according to the latest Eurmonitor international report.
There is a $29.34 bn
outward foreign direct investment by domestic companies between April and
January of 2013/14 which has seen some signs of recovery according to a Care
Ratings report.
There are 264 number
of new companies being set up every day on average during 2014. Most of them
are registered in Mumbai. India had 1.38 million registered companies at the
end of January, 2014.
Twitter like
messaging service Weibo Corporation has filed to raise $ 500 million via a US
initial public offering. Alibaba, which owns a stake in Weibo is expected to
raise about $ 15 billion New York this year in the highest profile Internet IPO
since Facebook’s in 2012.
Bharti Airtel has
raised Rs.2,453.2 crore (350 million Swiss Francs) by selling six-year bonds at
a coupon rate of three per cent and maturing in 2020. This is the largest ever
bond offering by an Indian company in Swiss Francs. Bharat Petroleum
Corporation raised 175 million Swiss Francs by selling five year bonds at 2.98
% coupon rate in February.
Indian Oil
Corporation plans to invest Rs 7650 crore in setting up a petrochemical complex
at its almost complete Paradip refinery in Odhisha in three to four years. The
company board is set to consider the setting up of a 700000 tonne per annum
polypropylene plant at an estimated cost at Rs.3150 crore.
Global chief
information officers at gathering in Bangalore in April to meet Indian startups
at an event called Tech50 Watchout for Little Eye Labs-Facebook type deals in
the making.
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CARE |
|
Rating |
Long-Term Bond Programme – I : AAA |
|
Rating Explanation |
Highest credit quality and lowest credit
risk. |
|
Date |
July 02, 2013 |
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Rating Agency Name |
CARE |
|
Rating |
Short term CP/ICD Programme : A1+ |
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Rating Explanation |
Very strong degree of safety and lowest
credit risk. |
|
Date |
July 02, 2013 |
RBI DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter in
the publicly available RBI Defaulters’ list.
EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of
31-03-2012.
INFORMATION DECLINED BY
|
Name : |
Mr. Anil Kumar Chaudhary |
|
Designation : |
Finance Director |
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Contact No.: |
91-11-24368092 |
LOCATIONS
|
Registered/ Corporate Office : |
Ispat Bhawan,
Lodhi Road, New Delhi – 110003, India |
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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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CMO Regional and
Zonal Offices : |
Northern Region ·
New Delhi North-Western Region ·
Chandigarh Eastern Region · Kolkata Western Region ·
Mumbai Central Region · Indore Southern Region ·
Chennai North Eastern Zone · Guwahati |
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CMO Branch Sales
Offices : |
F-10, Sector-2, Rourkela – 769006, Orissa, India |
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Other CMO Branch
Sales Offices : |
Northern Region: ·
Agra ·
Allahabad ·
Faridabad ·
Ghaziabad ·
Kanpur ·
Lucknow · New Delhi North-West
Region: ·
Chandigarh · Jalandhar City ·
Jammu ·
Ludhiana · Mandi Gobindgarh Eastern Region: ·
Bhubaneshwar ·
Bokaro ·
Kolkata ·
Dimapur ·
Durgapur ·
Guwahati ·
Patna Western Region: ·
Ahmedabad ·
Baroda ·
Mumbai ·
Nagpur ·
Pune Central Region: ·
Bhilai ·
Gwalior ·
Indore ·
Jabalpur ·
Jaipur ·
Kota Southern Region: ·
Bangalore ·
Belgaum ·
Chennai ·
Coimbatore ·
Hyderabad ·
Kochi ·
Tiruchirapalli ·
Vijayawada · Visakhapatnam |
DIRECTORS
AS ON 31.03.2013
|
Name : |
Mr. C S Verma |
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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 |
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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 |
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Name: |
Mr. Rakesh Sharma |
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Designation : |
DPT Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 31.03.2014
|
Category of
Shareholder |
Total
No. of Shares |
As a % |
|
(A) Shareholding of Promoter and Promoter Group |
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|
3304293713 |
80.01 |
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|
3304293713 |
80.01 |
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Total shareholding of Promoter and Promoter Group (A) |
3304293713 |
80.01 |
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(B) Public Shareholding |
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|
29263779 |
0.71 |
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|
129513499 |
3.14 |
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|
292953452 |
7.09 |
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|
241684645 |
5.85 |
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|
693415375 |
16.79 |
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|
|
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|
19146284 |
0.46 |
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|
|
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|
87704879 |
2.12 |
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|
16525520 |
0.40 |
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|
8985333 |
0.22 |
|
|
4805700 |
0.12 |
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|
4179633 |
0.10 |
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|
132362016 |
3.20 |
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Total Public shareholding (B) |
825777391 |
19.99 |
|
Total (A)+(B) |
4130071104 |
100.00 |
|
(C) Shares held by Custodians and against which Depository Receipts
have been issued |
0 |
0.00 |
|
|
0 |
0.00 |
|
|
454185 |
0.00 |
|
|
454185 |
0.00 |
|
Total (A)+(B)+(C) |
4130525289 |
0.00 |
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 |
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|
Pig Iron |
Tonnes |
2397000 |
260829 |
|
Crude Steel (i) |
Tonnes |
12487000 |
13453059 |
|
Saleable Steel |
Tonnes |
10740000 |
12324973 |
|
|
|
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|
ALLOY STEELS
PLANTS |
|
|
|
|
Pig Iron |
Tonnes |
58000 |
2341 |
|
Crude Steel |
Tonnes |
352000 |
308733 |
|
Saleable Steel |
Tonnes |
457000 |
550238 |
NOTES:
1)
Crude Steel installed capacity is in terms of solid
steel as per International Iron and steel Institute.
2)
"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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Financial Institution : |
· IDBI Trusteeship Services Limited, Asian Building, Ground Floor, 17, R. Kamani Marg, Ballard Estate, Mumbai - 400001, Maharashtra, India |
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Statutory Auditors : |
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|
Name : |
S.K. Mittal and
Company Chartered Accountants O.P. Totla and
Company Chartered
Accountants B.N. Misra and
Company Chartered
Accountants |
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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 |
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Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
4130525289 |
Equity Shares |
Rs.10/- each |
Rs. 41305.300 Millions |
|
|
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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 |
0.000 |
|
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 |
15427.700 |
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 |
566024.800 |
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 |
842184.600 |
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 |
30.09.2013 |
31.12.2013 |
|
Type |
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
|
Net Sales |
102679.100 |
115355.100 |
114587.200 |
|
Total Expenditure |
93006.500 |
106686.200 |
103267.400 |
|
PBIDT (Excl OI) |
9672.600 |
8668.900 |
11319.800 |
|
Other Income |
2261.700 |
1527.100 |
2088.000 |
|
Operating Profit |
11934.300 |
10196.000 |
13407.800 |
|
Interest |
1918.200 |
2164.800 |
2467.700 |
|
Exceptional Items |
(878.800) |
9881.200 |
199.200 |
|
PBDT |
9137.300 |
17912.400 |
11139.300 |
|
Depreciation |
3928.500 |
3988.000 |
4087.400 |
|
Profit Before Tax |
5208.800 |
13924.400 |
7051.900 |
|
Tax |
699.700 |
2120.500 |
1725.900 |
|
Provisions and contingencies |
0.000 |
0.000 |
0.000 |
|
Profit After Tax |
4509.100 |
11803.900 |
5326.000 |
|
Extraordinary Items |
0.000 |
0.000 |
0.000 |
|
Prior Period Expenses |
0.000 |
0.000 |
0.000 |
|
Other Adjustments |
0.000 |
0.000 |
0.000 |
|
Net Profit |
4509.100 |
11803.900 |
5326.000 |
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 |
FINANCIAL ANALYSIS
[all figures are
in Rupees Millions]
DEBT EQUITY RATIO
|
Particular |
31.03.2011 |
31.03.2012 |
31.03.2013 |
|
|
(Rs.
In Millions) |
(Rs.
In Millions) |
(Rs.
In Millions) |
|
Share Capital |
41304.000 |
41305.300 |
41305.300 |
|
Reserves & Surplus |
329390.700 |
356807.900 |
368941.100 |
|
Net
worth |
370694.700 |
398113.200 |
410246.400 |
|
|
|
|
|
|
long-term borrowings |
90525.600 |
115866.600 |
134855.500 |
|
Short term borrowings |
100032.400 |
45105.500 |
80150.200 |
|
Total
borrowings |
190558.000 |
160972.100 |
215005.700 |
|
Debt/Equity
ratio |
0.514 |
0.404 |
0.524 |
YEAR-ON-YEAR GROWTH
|
Year
on Year Growth |
31.03.2011 |
31.03.2012 |
31.03.2013 |
|
|
(Rs.
In Millions) |
(Rs.
In Millions) |
(Rs.
In Millions) |
|
Sales |
433073.600 |
463351.200 |
445982.600 |
|
|
|
6.991 |
(3.748) |
NET PROFIT MARGIN
|
Net
Profit Margin |
31.03.2011 |
31.03.2012 |
31.03.2013 |
|
|
(Rs.
In Millions) |
(Rs.
In Millions) |
(Rs.
In Millions) |
|
Sales |
433073.600 |
463351.200 |
445982.600 |
|
Profit |
21703.500 |
35427.200 |
49047.400 |
|
|
0.050 |
0.076 |
0.110 |
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 |
Yes |
|
10] |
Designation of contact
person |
Yes |
|
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
CS(OS) 419/2009
HINDUSTAN TIMES LTD ..... Plaintiff
Through: Ms. Ritika Ahuja, Adv.
versus
M/S STEEL AUTHORITY OF INDIA LIMITED
Defendant
Through: Mr. Sharat Kapoor, and Mr. Nor
Alam Advs.
CORAM:
MS. NEELAM SINGH (DHJS),
JOINT REGISTRAR
ORDER
13.03.2014
Learned Presiding Officer is on half day leave (forenoon) today.
As per directions, put up on 10.07.2014 for the purpose already fixed.
Reader to
Joint Registrar
March 13, 2014
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, BALLARD ESTATE, MUMBAI - 400001,
MAHARASHTRA, INDIA |
B82978529 |
|
2 |
10407999 |
18/04/2013 * |
5,000,000,000.00 |
IDBI TRUSTEESHIP
SERVICES LIMITED |
ASIAN BUILDING,
GROUND FLOOR, 17, R. KAMANI MARG, BALLARD ESTATE, MUMBAI - 400001,
MAHARASHTRA, INDIA |
B74443508 |
|
3 |
10395101 |
18/04/2013 * |
3,000,000,000.00 |
IDBI TRUSTEESHIP
SERVICES LIMITED |
ASIAN BUILDING,
GROUND FLOOR, 17, R. KAMANI MARG, BALLARD ESTATE, MUMBAI - 400001,
MAHARASHTRA, INDIA |
B74443938 |
|
4 |
10373662 |
18/04/2013 * |
3,600,000,000.00 |
IDBI TRUSTEESHIP
SERVICES LIMITED |
ASIAN BUILDING,
GROUND FLOOR, 17, R. KAMANI MARG, BALLARD ESTATE, MUMBAI - 400001,
MAHARASHTRA, INDIA |
B74444290 |
|
5 |
10322416 |
16/05/2012 * |
4,000,000,000.00 |
IDBI TRUSTEESHIP
SERVICES LIMITED |
ASIAN BUILDING,
GROUND FLOOR, 17, R. KAMANI MARG, BALLARD ESTATE, MUMBAI - 400001,
MAHARASHTRA, INDIA |
B40010092 |
|
6 |
10322417 |
16/05/2012 * |
4,550,000,000.00 |
IDBI TRUSTEESHIP
SERVICES LIMITED |
ASIAN BUILDING,
GROUND FLOOR, 17, R. KAMANI MARG, BALLARD ESTATE, MUMBAI - 400001,
MAHARASHTRA, INDIA |
B40013989 |
|
7 |
10229692 |
12/08/2010 * |
5,450,000,000.00 |
IDBI TRUSTEESHIP
SERVICES LIMITED |
ASIAN BUILDING,
GROUND FLOOR, 17, R. KAMANI MARG, BALLARD ESTATE, MUMBAI - 400001,
MAHARASHTRA, INDIA |
A93701563 |
|
8 |
10230323 |
12/08/2010 * |
6,600,000,000.00 |
IDBI TRUSTEESHIP
SERVICES LIMITED |
ASIAN BUILDING,
GROUND FLOOR, 17, R. KAMANI MARG, BALLARD ESTATE, MUMBAI - 400001,
MAHARASHTRA, INDIA |
A93700938 |
|
9 |
10209543 |
28/04/2010 * |
2,420,000,000.00 |
IDBI TRUSTEESHIP
SERVICES LIMITED |
ASIAN BUILDING,
GROUND FLOOR, 17, R. KAMANI MARG, BALLARD ESTATE, MUMBAI - 400001,
MAHARASHTRA, INDIA |
A85166627 |
|
10 |
10211081 |
28/04/2010 * |
4,500,000,000.00 |
IDBI TRUSTEESHIP
SERVICES LIMITED |
ASIAN BUILDING,
GROUND FLOOR, 17, R. KAMANI MARG, BALLARD ESTATE, MUMBAI - 400001,
MAHARASHTRA, INDIA |
A85166759 |
|
11 |
10207558 |
23/02/2010 |
6,000,000,000.00 |
AXIS BANK
LIMITED |
ASIAN BUILDING,
GROUND FLOOR, 17, R. KAMANI MARG, BALLARD ESTATE, MUMBAI - 400001,
MAHARASHTRA, INDIA |
A80960453 |
|
12 |
10199378 |
16/01/2010 |
1,680,000,000.00 |
IDBI TRUSTEESHIP
SERVICES LIMITED |
ASIAN BUILDING,
GROUND FLOOR, 17, R. KAMANI MARG, BALLARD ESTATE, MUMBAI - 400001,
MAHARASHTRA, INDIA |
A77846889 |
|
13 |
10199380 |
16/01/2010 |
1,500,000,000.00 |
IDBI TRUSTEESHIP
SERVICES LIMITED |
ASIAN BUILDING,
GROUND FLOOR, 17, R. KAMANI MARG, BALLARD ESTATE, MUMBAI - 400001,
MAHARASHTRA, INDIA |
A77848109 |
|
14 |
10199381 |
16/01/2010 |
3,350,000,000.00 |
IDBI TRUSTEESHIP
SERVICES LIMITED |
ASIAN BUILDING,
GROUND FLOOR, 17, R. KAMANI MARG, BALLARD ESTATE, MUMBAI - 400001,
MAHARASHTRA, INDIA |
A77847499 |
|
15 |
10187049 |
10/11/2009 |
1,500,000,000.00 |
IDBI TRUSTEESHIP
SERVICES LIMITED |
ASIAN BUILDING,
GROUND FLOOR, 17, R. KAMANI MARG, BALLARD ESTATE, MUMBAI - 400001,
MAHARASHTRA, INDIA |
A73811770 |
|
16 |
10187050 |
10/11/2009 |
7,000,000,000.00 |
IDBI TRUSTEESHIP
SERVICES LIMITED |
ASIAN BUILDING,
GROUND FLOOR, 17, R. KAMANI MARG, BALLARD ESTATE, MUMBAI - 400001,
MAHARASHTRA, INDIA |
A73812182 |
|
17 |
10187051 |
10/11/2009 |
3,000,000,000.00 |
IDBI TRUSTEESHIP
SERVICES LIMITED |
ASIAN BUILDING,
GROUND FLOOR, 17, R. KAMANI MARG, BALLARD ESTATE, MUMBAI - 400001,
MAHARASHTRA, INDIA |
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, BALLARD ESTATE, MUMBAI - 400001, MAHARASHTRA,
INDIA |
A70730296 |
|
20 |
10172177 |
01/05/2012 * |
5,250,000,000.00 |
IDBI TRUSTEESHIP
SERVICES LIMITED |
ASIAN BUILDING,
GROUND FLOOR, 17, R. KAMANI MARG, BALLARD ESTATE, MUMBAI - 400001,
MAHARASHTRA, INDIA |
B39399712 |
|
21 |
10172179 |
01/05/2012 * |
9,500,000,000.00 |
IDBI TRUSTEESHIP
SERVICES LIMITED |
ASIAN BUILDING,
GROUND FLOOR, 17, R. KAMANI MARG, BALLARD ESTATE, MUMBAI - 400001,
MAHARASHTRA, INDIA |
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 |
B82452848 |
|
24 |
80065021 |
01/05/2012 * |
582,000,000.00 |
IDBI TRUSTEESHIP
SERVICES LIMITED |
ASIAN BUILDING,
GROUND FLOOR, 17, R. KAMANI MARG, BALLARD ESTATE, MUMBAI - 400001,
MAHARASHTRA, INDIA |
B39400213 |
|
25 |
90043261 |
06/07/2004 * |
65,000,000.00 |
BANK OF
MAHARASHTRA |
LEGAL
DEPARTMENT, LOKMANGAL; 1501; SHIVAJINAGAR, PUNE - 411005, MAHARASHTRA,
INDIA |
- |
|
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 |
DELHI, NEW
DELHI, DELHI, INDIA |
- |
|
28 |
90061442 |
21/03/2001 * |
6,220,000,000.00 |
STATE BANK OF
INDIA |
DELHI, NEW
DELHI, 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 |
- |
* Date of charge modification
UNSECURED LOANS
|
Unsecured Loans |
31.03.2013 (Rs.
In Millions) |
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 AND
NINE MONTHS ENDED 31ST DECEMBER, 2013
PART I
(RS.
IN MILLIONS)
|
Sl. No |
Particulars |
Quarter ended |
Nine Months ended |
|
|
31st Dec 2013 |
30th Sept 2013 |
31st Dec 2013 |
||
|
|
|
(Unaudited) |
(Unaudited) |
(Unaudited) |
|
1 |
(a) Net Sales / Income from operations i) Gross Sales |
127162.800 |
128019.900 |
368794.100 |
|
|
ii) Less : Excise Duty Subtotal (a) (i-ii) |
13535.800 |
13921.200 |
40007.200 |
|
113627.000 |
114098.700 |
328786.900 |
||
|
2 |
(b) Other operating income |
960.200 |
1144.000 |
3452.500 |
|
Total Income from Operations (net) |
114587.200 |
115242.700 |
332239.400 |
|
|
Expenses a) Changes in Inventories of Finished
Goods, Work in Progress and Stock-in-Trade |
(3738.900) |
4555.100 |
(5293.600) |
|
|
|
b) Cost of Materials Consumed |
50818.100 |
46924.800 |
144415.800 |
|
|
c) Purchase of Stock in Trade |
0.700 |
2.900 |
6.400 |
|
|
|
0.000 |
0.000 |
0.000 |
|
|
d) Employee Benefits Expense |
22678.000 |
24954.300 |
70580.200 |
|
|
e) Power & Fuel |
12298.300 |
12976.800 |
36800.800 |
|
|
f) Depreciation and Amortisation Expenses |
4087.400 |
3988.000 |
12003.900 |
|
|
g) Other Expenses |
21211.200 |
17272.300 |
56450.500 |
|
Total Expenses |
107354.800 |
110674.200 |
314964.000 |
|
|
|
|
|
|
|
|
3 |
Profit from Operations before Other Income, Finance Costs and Exceptional Items ( 1-2) |
7232.400 |
4568.500 |
17275.400 |
|
4 |
|
|
|
|
|
Other Income i)
Interest Earned |
1489.800 |
1501.000 |
4278.100 |
|
|
|
ii) Other Income |
598.200 |
138.500 |
1980.700 |
|
Subtotal (i+ii) |
2088.000 |
1639.500 |
6258.800 |
|
|
|
|
|
|
|
|
5 6 |
Profit from ordinary activities before Finance Costs and
Exceptional Items ( 3+4) |
9320.400 |
6208.000 |
23534.200 |
|
Finance Cost |
2467.700 |
2164.800 |
6550.700 |
|
|
|
|
|
|
|
|
7 8 |
Profit from ordinary activities after Finance Costs but before
Exceptional Items ( 5-6) |
6852.700 |
4043.200 |
16983.500 |
|
Exceptional items Foreign Exchange Loss (-)/ Gain(+) |
199.200 |
(681.400) |
(1361.000) |
|
|
9 10 |
Compensation Received for Non-Performance
of Contract. |
0.000 |
10562.600 |
|
|
Profit from Ordinary Activities before Tax ( 7+8) |
7051.900 |
13924.400 |
26185.100 |
|
|
Tax Expense (a) Current Tax |
1391.800 |
2887.100 |
5357.900 |
|
|
|
(b) Deferrred
Tax Liability / Assets ( - ) |
294.100 |
2112.400 |
3106.200 |
|
|
(c) MAT Credit |
40.000 |
(2887.100) |
(3926.100) |
|
|
(d) Earlier
Years
|
0.000 |
8.100 |
8.100 |
|
Sub-Total ( a to d
) |
1725.900 |
2120.500 |
4546.100 |
|
|
|
|
|
|
|
|
11 |
Net Profit from Ordinary Activities after Tax ( 9-10 ) |
5326.000 |
11803.900 |
21639.000 |
|
12 |
Extraordinary Items (net of Tax Expense Rs.
Nil)
|
0.000 |
0.000 |
0.000 |
|
13 |
Net Profit for the Period (11-12) |
5326.000 |
11803.900 |
21639.000 |
|
14 |
Paid up Equity Share Capital ( Face value : Rs. 10 per share ) |
41305.300 |
41305.300 |
41305.300 |
|
15 |
Reserves (Excluding Revaluation Reserve ) as per Balance Sheet of Previous Accounting Year |
|
|
0.000 |
|
16 |
Basic and Diluted Earnings per Share (of
Rs.10/- each) before and after
Extraordinary Items ( Not Annualised )
( Rupees ) |
1.29 |
2.86 |
5.24 |
|
Sl. No |
Particulars |
Quarter ended |
Nine Months ended |
|
|
31st Dec 2013 |
30th Sept 2013 |
31st Dec 2013 |
||
|
|
|
(Unaudited) |
(Unaudited) |
(Unaudited) |
|
A |
PARTICULARS
OF SHAREHOLDING |
|
|
|
|
1 |
Public share holding |
|
|
|
|
|
- Number of shares |
82,57,77,391 |
82,57,77,391 |
82,57,77,391 |
|
|
- Percentage of share holding |
19.99 |
19.99 |
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 |
330,42,93,713 |
330,42,93,713 |
|
|
- Percentage of shares (as a % of the total shareholding of the promoter and promoter group) |
100.00 |
100.00 |
100.00 |
|
|
- Percentage of shares (as a % of the total share capital of the company) |
80.00 |
85.82 |
80.00 |
|
|
Particulars
|
Quarter ended
31st Dec 2013 |
|
B
|
INVESTOR COMPLAINTS (Nos.) Pending at the
beginning of the quarter |
1 |
|
|
Received during the
quarter |
9 |
|
|
Disposed off during
the quarter |
10 |
|
|
Remaining
unresolved at the end of the quarter |
0 |
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 respective
Meetings held on 14th February, 2014.
2)
The above results have been reviewed by the
Statutory Auditors, as required under Clause 41 of the Listing Agreement.
3)
The Board of Directors, in its meeting held on 14th
February, 2014, have approved interim dividend of Rs.2.02/- per equity share
for the Financial Year 2013-14. The record date for payment of Interim Dividend
has been fixed as 20th February, 2014.
4)
Net Sales include sales to Government Agencies
recognised on provisional contract prices during the Nine Months ended 31st
December, 2013: Rs.24728.300 millions (corresponding
Nine Months of previous year: Rs. Rs.31850.700 millions) and cumulatively upto
31st December, 2013: Rs.207165.400 millions (upto the corresponding Nine Months
previous year : Rs.175184.400 millions).
5)
a)
After
expiry of long term wage agreement with non-executive employees on 31st
December, 2011, the Company has entered into a Memorandum of Understanding with
the Unions, for implementation of wage revision of non-executives w.e.f. 1st
January, 2012. Employee Benefits Expense for the quarter/nine months ended 31st
December, 2013 are inclusive of wage revision arrears of non-executives upto
31st March, 2013, amounting to Rs.3394.800 millions on estimated basis.
Further, the wage revision arrears of Rs.7085.500 millions have been charged to
Employee Benefits Expense for the nine months ended 31st December, 2013.
b)
On review,
an amount of Rs.2027.000 millions in Employee Benefits Expense (EBE) and
Rs.97.200 millions in Expenditure during construction (EDC) upto 31st March,
2013 and Rs.265.300 millions in EBE and Rs.16.500 millions in EDC for the half
year ended 30th September, 2013, excess provided in respect of other benefits
for executives, has been written back during the current quarter/nine months.
6)
The
auditors in their limited review report for the half year ended 30th September,
2013 have brought out that the Company has not provided for:
a)
Entry tax amounting to Rs.829.100 millions in the state of Uttar Pradesh,
Rs.9763.400 millions in the state of Chhatisgarh and Rs.2046.300 millions in
the state of Odisha;
b)
Income tax
demand of Rs.876.200 millions;
c)
Claims of
Rs.2538.400 millions by DVC for supply of Power;
The
Management’s view on the above mentioned points is that these cases are
sub-judice and pending for adjudication before the Hon’ble Supreme Court. The
disputed demands, contested on valid and bonafide grounds, have been disclosed
as contingent liabilities as it is not probable that present obligations exist
as on 31st December, 2013. Therefore, there is no adverse impact on profit. These
cases were sub-judice as on 31st March, 2012 also and there is no change in the
status of these cases till date.
7)
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.4510.100 millions (net debit) for the current Nine Months
[corresponding Nine Months of previous year- Rs.1890.100 millions (net debit)],
has been adjusted in the carrying cost of the Fixed Assets/Capital
Work-in-progress.
8)
The figures
of previous periods have been re-grouped, wherever necessary, so as to conform
to the current Quarter/Nine Months classification.
CONTINGENT
LIABILITIES:
|
PARTICULARS |
31.03.2013 (Rs. in
millions) |
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 RELEASES
SAIL-LED COS AWAIT AFGHAN LAW TO NEGOTIATE INVESTMENT PLAN
Sources in the seven-member consortium of Indian steel makers
AFISCO said preparations for passing the new law by the Afghan government has
been on for nearly six months now and is expected to be effected in a few
months.
The long-pending negotiations on SAIL -led
consortium's investment for a steel mill and mine development in Afghanistan
will take place only after the new Mining Law is passed by the Afghan
government.
Sources in the seven-member consortium of Indian steel
makers AFISCO said preparations for passing the new law by the Afghan
government has been on for nearly six months now and is expected to be effected
in a few months.
"Inter-Ministerial Committee of Government of
Afghanistan proposed to re-commence negotiations with AFISCO under terms of
revised proposal indicated by consortium. The negotiations are planned after
the proposed new Mining Law is passed by the Government of Afghanistan,"
said a source.
After winning bids for three iron ore mines at Hajigak
in the war-torn Afghanistan in November 2011, AFISCO had said that it would
invest USD 10.8 billion to set up a 6.2 mtpa steel plant in two equal phases
along with a 800 MW power plant, besides creating the necessary infrastructure.
Subsequently, it scaled down the plan and said will
initially invest only up to Rs 70000.000 Millions (about USD 1.14 billion) for
setting up a steel plant with an annual capacity of up to 1.5 mtpa along with
the infrastructure.
Scaling down the size of the investment and the steel
mill warrants further negotiations and the two parties have been trying to seal
that for a long time. Apart from SAIL, the other consortium members are RINL,
NMDC, JSW JSW Ispat, Jindal Steel and Power and Monnet Ispat.
SAIL
stock price
On March 26, 2014, at 13:44 hrs Steel Authority of
India was quoting at Rs 62.70, up Rs 2.95, or 4.94 percent. The 52-week high of
the share was Rs 74.80 and the 52-week low was Rs 37.65.
The company's trailing 12-month (TTM) EPS was at Rs
6.32 per share as per the quarter ended December 2013. The stock's
price-to-earnings (P/E) ratio was 9.92. The latest book value of the company is
Rs 99.32 per share. At current value, the price-to-book value of the company is
0.63.
SAIL-LED GROUP HOPES TO BUY COAL ASSETS IN POLAND
Most
steel producers in India, the world's third-largest coal importer, depend on
overseas coal shipments and are trying to buy mines in Africa and Europe
A consortium led by Steel Authority of India Limited,
the country's second-biggest steelmaker, hopes to buy coal assets in Poland in
the next few months, Chairman C.S. Verma said on Thursday.
Most steel producers in India, the world's
third-largest coal importer, depend on overseas coal shipments and are trying
to buy mines in Africa and Europe.
SAIL-led International Coal Ventures Private
Limited (ICVL), whose five participating firms are all state-owned or
state-controlled, has been scouting for mines since 2009.
Verma said they had already invested in due
diligence for the Polish assets.
JSW Steel Limited, India's third-largest steel maker,
has already bought US mines that produce the coal used in steel making.
India's coal imports rose 21 percent to 152
million tonnes last year, with most of that being thermal coal used to generate
power, according to Delhi-based research firm OreTeam.
JSW STEEL HIKES PRICES BY UP TO RS 750/ TONNE
Other producers such as SAIL, Essar Steel,
Rashtriya Ispat Nigam and Jindal Steel and Power are also expected to hike
prices in the coming days due to rise in input costs, increasing international
rates of steel and demand uptick in the current quarter, industry sources said.
JSW Steel has increased prices of its
products by up to Rs 750 per tonne, or about 1 percent, across the board for
March, its third hike in three months. Other producers such as SAIL, Essar
Steel, Rashtriya Ispat Nigam and Jindal Steel and Power are also expected
to hike prices in the coming days due to rise in input costs, increasing
international rates of steel and demand uptick in the current quarter, industry
sources said.
However, it could not be confirmed from the respective
companies. "We have roughly increased the prices of long products in the
range of Rs 500-750 per tonne for March. For flat products, the increase is Rs
500 per tonne," JSW Steel Director (Commercial and Marketing) Jayant
Acharya told PTI.
Despite three consecutive price hikes in 3 months, we
are still Rs 3,500 per tonne behind the price of April 2012 for long products
while prices of flat products have now come to the level of April 2012, he
added. "So prices are still lagging behind while input costs have
increased tremendously. On the cost side, if you see, price of iron ore sold
through e-auction has increased. Coal prices have decreased to some extent but
its benefit could not reach us due to exchange rate fluctuations," Acharya
said.
Indicating better times in the coming months, he said
there has been a surge in demand in last few months and automobile and
construction sectors have shown some growth. The trend is expected to continue
for the time being due to Interim Budget announcements of across the board duty
reductions for the automobiles and capital goods sector. This in turn will lead
to rise in steel demand, he said.
However, the company has not raised the price of its
long term contracts and accordingly, there has not been any changes in
quarterly prices, Acharya clarified. For the last two months, most of the steel
producers, including JSW Steel, had increased prices expecting demand surge
during the last quarter of the fiscal, considered as the strongest quarter as
companies rush to meet their annual targets.
The input costs, largely due to rise in iron ore prices
and logistics rates, have also led to increase in steel prices. The steel
manufacturers are also hoping a surge in demand due to the upcoming general
elections. At present, ex-factory prices of long products like TMT bars and
structures are hovering in the range of Rs 37,000-39,000 per tonne, while
prices of flat products like HR-coil and CR-coil are at about Rs 39,500 and Rs 43,500
per tonne, respectively.
Flat steel products are used in industries like
automobiles and consumer durables, while long steel products like TMT bars and
angles are used in the construction sector.
JSW operates a 10 million tonnes plant in Karnataka's
Vijayanagar (running at about 80 percent capacity) and a 3 MT plant in Dolvi,
near Mumbai. It is the second largest domestic manufacturer after state-owned
SAIL.
JSW
Steel stock price
On March 26, 2014, at 13:53 hrs JSW Steel was quoting
at Rs 993.00, up Rs 13.20, or 1.35 percent. The 52-week high of the share was
Rs 1046.75 and the 52-week low was Rs 451.50.
The company's trailing 12-month (TTM) EPS was at Rs
45.75 per share as per the quarter ended December 2013. The stock's price-to-earnings
(P/E) ratio was 21.7. The latest book value of the company is Rs 811.51 per
share. At current value, the price-to-book value of the company is 1.22.
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. 60.71 |
|
|
1 |
Rs. 102.04 |
|
Euro |
1 |
Rs. 83.77 |
INFORMATION DETAILS
|
Information
Gathered by : |
PRT |
|
|
|
|
Analysis Done by
: |
RAS |
|
|
|
|
Report Prepared
by : |
MRI |
SCORE and RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
9 |
|
PAID-UP CAPITAL |
1~10 |
8 |
|
OPERATING SCALE |
1~10 |
9 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
9 |
|
--PROFITABILIRY |
1~10 |
8 |
|
--LIQUIDITY |
1~10 |
8 |
|
--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 |
|
76 |
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.