MIRA
INFORM REPORT
|
Report Date : |
15.02.2014 |
IDENTIFICATION DETAILS
|
Name : |
RASHTRIYA ISPAT
NIGAM LIMITED |
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Registered
Office : |
Administrative
Building, Vishakhapatnam – 530031, Andhra Pradesh |
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|
Country : |
India |
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|
|
Financials (as
on) : |
31.03.2013 |
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Date of
Incorporation : |
18.02.1982 |
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Com. Reg. No.: |
01-003404 |
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Capital
Investment / Paid-up Capital : |
Rs.
63468.200 Millions |
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|
|
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CIN No.: [Company Identification
No.] |
U27109AP1982GOI003404 |
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|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
VPNR00283D / VPNR00389E / VPNR00390F / VPNR00392A / VPNR00393B
/ VPNR00395D / VPNR00391G / VPNR00394C / VPNR00010D |
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|
Legal Form : |
A Closely Held Public Limited Liability Company |
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Line of Business
: |
Manufacturing of
Steel Products. |
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No. of Employees
: |
18072 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
A (64) |
|
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 499000000 |
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|
Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Exist |
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Comments : |
Subject is a wholly owned subsidiary of Government of India. It is a
well-established company having fine track record. The ratings reflect RINL’s established position in the domestic long steel
products segment marked by sound financial risk, comfortable capital
structure, robust distribution network and adequate liquidity position. Trade relations are reported as fair. Business is active. Payments are
reported to be regular and as per commitment.
In view of strong government support, the 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 – December 1, 2013
|
Country Name |
Previous Rating (30.09.2013) |
Current Rating (01.12.2013) |
|
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
The worst is over for India’s economy with gross domestic product likely
to expand 5 %to 5.5 % this year and more than 6 % in 2015, according to Moody’s
Analytics. Concerns over the rupee and current account deficit are under
control, said the agency. Ratings firm Crisil has forecast 6 % growth for
2014/15 up from the estimated 4.8 % for 2013/14. Total economic growth,
infrastructure bottlenecks and lack of transparency and consistency in foreign
direct investment policies seem to have taken a toll on India’s attractiveness
as an investment destination, says an Ernst & Young survey. Projects
with FDI component fell 16.4 % across the globe in 2012 from the previous
year. The drop in India was steeper at 21 %. State run carrier Air India
is doling out free tickets to its 24000 employees, even as it expects to incur
a loss of Rs 39000 mn this financial year and has a debt of Rs 350000 mn.
550000 number of jobs generated across India in 2013, a fall of 0.4 % as
compared to with a year earlier. The National Capital Region has a one-fourth
share in total jobs created, according to a study by industry lobby group
Assochem, Banks, real estate, automobile and telecommunications sectors are
showing a rise of job creation. $ 805 mn investments by venture capital firms
in India during 2013, registering a drop of about 18 % over the previous year.
The Information Technology and IT-Enabled Services Industry retained its
status as the favourable venture capital investors in 2013. Pakistan has
temporarily banned gold imports for the second time in six months, as it tries
to stem smuggling into India. India’s import duty on gold is 10 % and curbs on
purchases have dried up legal imports into what used to be the world’s biggest
bullion buyers. The World Gold Council puts the amount smuggled into India at
upto 200 tonnes in 2013. The Reserve Bank of India has proposed that unclaimed
bank deposits estimated to be about Rs 35000 mn be used for education and
awareness among depositors. According to the plan, deposits that have not
been claimed for at least 10 years will be transferred to the scheme.
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CRISIL |
|
Rating |
Long term debt : AA |
|
Rating Explanation |
High degree of safety and very low credit
risk. |
|
Date |
January 30, 2014 |
|
Rating Agency Name |
CRISIL |
|
Rating |
Short term debt : A1+ |
|
Rating Explanation |
Very strong degree of safety and lowest
credit risk. |
|
Date |
January 30, 2014 |
RBI DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available RBI Defaulters’ list.
EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of
31-03-2012.
INFORMATION DECLINED
MANAGEMENT NON-COOPERATIVE
(CONTACT NO.:91-891-2518325)
LOCATIONS
|
Registered
Office : |
Administrative
Building, Vishakhapatnam – 530031, Andhra Pradesh, India |
|
Tel. No.: |
91-891-2518325/ 538/
2888360/ 390/ 2888247/ 2518360 |
|
Fax No.: |
91-891-2518753/
756/ 2888316/ 2518321 |
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E-Mail : |
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Website |
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Regional
Office 1 : |
1, |
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Regional
Office 2 : |
101, Free Press
House, Nariman Point, Mumbai - 400021, |
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Regional
Office 3 : |
184, Anna Salai,
Chennai - 600006, Tamilnadu, India |
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Regional
Office 4 : |
15, NBCC Tower,
UG Floor, Bhikaji Cama Place, New Delhi – 110066, India |
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Factory 1 : |
Vishakhapatnam, District
Vishakhapatnam, |
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Factory 2 : |
Jaggayyapeta,
District Krishna, |
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Factory 3 : |
Madharam,
District Khamman, |
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Northern
Region : |
·
6TH Floor, Prakash Deep Building 7,
Tolstoy Marg, New Delhi - 110001, India ·
Block No.38/4-B, F-10 and 11, Near
Punjab and Sind Bank, Friends Centre, Sanjay Place, Agra - 282002, Delhi,
India ·
117/L/452,Channi House, 1st
Floor, Naveen Nagar, Near Double Pullia, Kanpur - 208025, Uttar Pradesh,
India ·
S.C.O.No.141-142, 2nd Floor, Sector
8-C, Chandigarh - 160018, Punjab, India ·
SCO-3, 1st Floor, HUDA
Complex,Sec-19, Mathura Road(NH-2), Faridabad - 121001, Haryana, India ·
B-5, RDC, Shri Ravi Shankar Plaza, Rajnagar,
Ghaziabad - 201001 (Uttar Pradesh), India ·
Meghalaya Towers, 3rd Floor,
Opposite All Saint Church, C-300,
Sansarvilla, MI Road, Jaipur - 302001, Rajasthan, India ·
Master Chambers, 5th Floor, 19, Firoz
Gandhi Market, Ludhiana - 141001, Punjab, India ·
33/20,Ganapati Kunj, Circular Road
Dalanwala, Dehradun-248001, Uttarakhand, India |
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Eastern
Region: |
·
1, Acharya J.C. Bose Road, Kolkata - 700020, West Bengal, India ·
IPICOL House, Annexe Building, 2nd Floor ,Janpath,
Bhubaneswar - 751022, Orissa, India ·
West Boring Canal Road, Patna - 800001, Bihar, India |
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Western
Region: |
·
101, Free Press House, Free Press
Journal Road, Mumbai - 400021, Maharashtra, India ·
NBCC Hours, 1st Floor, Near
Sahajanand College, Opposite Kamadhenu, Complex, Ambawadi, Ahmedabad -
380015, Gujarat, India · 107-109, Rafael Towers, 812,Old Palasia, Indore - 452001, Madhya Pradesh, India ·
3025/8, Shreenidhi Chambers, 1st
Floor, Senapati Bapat Marg, Pune - 411016, Maharashtra, India ·
317, Rabindranath Tagore Road, Civil
Lines, Nagpur - 440001, Maharashtra, India |
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Southern
Region: |
·
India Garage Building, 184, Anna
Salai, Chennai - 600006, Tamilnadu, India ·
303, 3rd Floor, Mohan Towers, 50,
Residency Road, Bangalore - 560025, Karnataka, India ·
Suguna Building,1st Floor,
707,Avanashi Road, Coimbatore - 641037, Tamilnadu, India ·
Chakos Tower, 2nd Floor, Padma Junction, Padma
Pulleppady Road ·
457/1B1, Deshpande Nagar, Hubli -
580029, Karnataka, India |
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Andhra Region:
|
· 10-3-311/A, Khanij Bhavan, NMDC Building, Hyderabad - 500028, Andhra Pradesh, India · D-Block, Project Office Complex, Visakhapatnam - 530031, Andhra Pradesh, India |
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D-Block, Project Office , Visakhapatnam - 530031, Andhra Pradesh, India |
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Marketing
Department Visakhapatnam Steel Plant Main Administrative Building, Visakhapatnam – 530 031, Andhra Pradesh, India |
DIRECTORS
AS ON 21.09.2013
|
Name : |
Mr. A.P. Choudhary |
|
Designation : |
Chairman-Cum-Managing Director (w.e.f. 01.08.2011) |
|
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 |
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|
|
|
Name : |
Mr. Umesh Chandra |
|
Designation : |
Director – (Operations) |
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Date of Birth/Age : |
02.07.1954 |
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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 |
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|
|
Name : |
Mr. P. Madhusudhan |
|
Designation : |
Director – (Finance) |
|
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 |
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|
|
Name : |
Mr. T K Chand |
|
Designation : |
Director – (Commercial) (w.e.f. 22nd September, 2010) |
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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. |
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|
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|
Name : |
Mr. Y R Reddy |
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Designation : |
Director – (Personnel) (w.e.f. 22nd
December, 2010) |
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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. |
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|
Name : |
Mr. N S Rao |
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Designation : |
Director – (Projects) (w.e.f. 19th April, 2012) |
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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 |
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|
Name : |
Mr. Lokesh Chandra |
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Designation : |
Government Director |
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Date of Appointment : |
13.03.2013 |
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|
Name : |
Mr. V K Thakral |
|
Designation : |
Government Director |
|
Date of Appointment : |
31.05.2013 |
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|
Name : |
Mr. A P V N Sarma |
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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. |
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|
|
|
Name : |
Mr. H S Chahar |
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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 |
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|
|
|
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 |
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|
|
|
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 |
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|
|
|
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. |
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|
Name : |
Shri Ashhok Kumar Jain |
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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 : |
Prof. Sushil |
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Designation : |
Independent Director (w.e.f. 14th May,2012) |
|
Qualification : |
BE mechanical engineering and M Tech in industrial engineering from IIT Delhi. Ph.D 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 |
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|
|
|
Name : |
Prof. Suresh Kumar Garg |
|
Designation : |
Independent Director |
KEY EXECUTIVES
|
Name : |
Mr. P. Mohan Rao |
|
Designation : |
Company Secretary and Compliance Officer |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 31.03.2013
|
Names of Equity Shareholder |
|
No. of Shares |
|
President of India |
|
4889846200 |
|
|
|
|
|
Total |
|
4889846200 |
|
Names of Preference Shareholder |
|
No. of Shares |
|
President of India |
|
1456970000 |
|
|
|
|
|
Total |
|
1456970000 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturing 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
|
No. of Employees : |
18072 (Approximately) |
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Bankers : |
· State Bank of India · Bank of Baroda · Canara Bank · State Bank of Hyderabad · Allahabad Bank · IDBI Bank Limited · UCO Bank · Axis Bank · IndusInd Bank · HDFC Bank · Deutsche Bank · Bank of Tokyo · ICICI Bank · Citi Bank · Standard Chartered Bank · HSBC Bank · Andhra Bank · Vijaya Bank · DBS Bank · SIDBI · Royal Bank of Scotland · Kotak Mahindra Bank Limited. · JP Morgan Chase Bank N.A. ·
Exim Bank |
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Facilities : |
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Banking
Relations : |
-- |
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Statutory Auditors : |
|
|
Name : |
B. V. Rao and Company Chartered Accountants |
|
Address : |
Flat No. FF-01, |
|
Tel. No.: |
91-891-2549707/ 2549561/ 2799234/ 2551827 |
|
Mobile : |
91-9393100103 |
|
E-Mail : |
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|
|
|
Cost Auditors : |
|
|
Name : |
Mr. Jugal Kishore Puri Cost Accountant |
|
Address : |
New Delhi, India |
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|
|
|
Joint Ventures : |
· RINMOIL Ferro Alloys Private Limited International Coal Ventures Private Limited |
CAPITAL STRUCTURE
AS ON 21.09.2013
Authorised Capital : Rs.
80000.000 Millions
Issued, Subscribed & Paid-up Capital : Rs. 60233.462
Millions
AS ON 31.03.2013
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
4890000000 |
Equity Shares |
Rs. 10/- each |
Rs. 48900.000 Millions |
|
3110000000 |
Preference Shares |
Rs. 10/- each |
Rs. 31100.000 Millions |
|
|
|
|
|
|
|
Total |
|
Rs. 80000.000
Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
4889846200 |
Equity Shares |
Rs. 10/- each |
Rs.
48898.500 Millions |
|
1456970000 |
7 % Non-Cumulative redeemable Preference Shares |
Rs. 10/- each |
Rs.
14569.700 Millions |
|
|
|
|
|
|
|
Total |
|
Rs. 63468.200 Millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
I.
EQUITY AND LIABILITIES |
|
|
|
|
(1)Shareholders' Funds |
|
|
|
|
(a) Share Capital |
63468.200 |
77273.200 |
78273.200 |
|
(b) Reserves & Surplus |
61305.000 |
59319.700 |
54019.000 |
|
(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) |
124773.200 |
136592.900 |
132292.200 |
|
|
|
|
|
|
(3)
Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
12415.600 |
0.000 |
0.000 |
|
(b) Deferred tax liabilities (Net) |
2,292.100 |
609.800 |
799.700 |
|
(c) Other long
term liabilities |
1050.000 |
832.300 |
485.900 |
|
(d) long-term
provisions |
4147.700 |
4797.300 |
5778.200 |
|
Total Non-current
Liabilities (3) |
19905.400 |
6239.400 |
7063.800 |
|
|
|
|
|
|
(4)
Current Liabilities |
|
|
|
|
(a)
Short term borrowings |
36584.400 |
25751.400 |
11358.800 |
|
(b)
Trade payables |
7379.400 |
3901.900 |
5409.500 |
|
(c) Other
current liabilities |
56151.800 |
36458.400 |
27502.500 |
|
(d) Short-term
provisions |
1731.000 |
6104.400 |
6907.700 |
|
Total Current
Liabilities (4) |
101846.600 |
72216.100 |
51178.500 |
|
|
|
|
|
|
TOTAL |
246525.200 |
215048.400 |
190534.500 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1)
Non-current assets |
|
|
|
|
(a)
Fixed Assets |
|
|
|
|
(i)
Tangible assets |
37870.700 |
17836.500 |
15268.900 |
|
(ii)
Intangible Assets |
27.400 |
31.900 |
30.000 |
|
(iii) Capital
work-in-progress |
99652.400 |
105960.800 |
94550.100 |
|
(iv)
Intangible assets under development |
222.000 |
150.100 |
0.000 |
|
(b) Non-current Investments |
3625.800 |
3625.800 |
3616.000 |
|
(c) Deferred tax assets (net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
4983.600 |
2418.900 |
2973.000 |
|
(e) Other
Non-current assets |
365.800 |
103.300 |
79.700 |
|
Total Non-Current
Assets |
146747.700 |
130127.300 |
116517.700 |
|
|
|
|
|
|
(2)
Current assets |
|
|
|
|
(a)
Current investments |
0.000 |
0.000 |
0.000 |
|
(b)
Inventories |
38286.000 |
34031.100 |
32547.100 |
|
(c)
Trade receivables |
10096.500 |
4271.500 |
3302.700 |
|
(d) Cash
and cash equivalents |
16250.200 |
20683.400 |
19988.900 |
|
(e) Short-term
loans and advances |
34177.500 |
23665.400 |
16338.900 |
|
(f)
Other current assets |
967.300 |
2269.700 |
1839.200 |
|
Total
Current Assets |
99777.500 |
84921.100 |
74016.800 |
|
|
|
|
|
|
TOTAL |
246525.200 |
215048.400 |
190534.500 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
|
|
SALES |
|
|
|
|
|
|
|
Revenue from operations |
121106.900 |
132326.100 |
105704.900 |
|
|
|
Other Income |
4554.200 |
3283.900 |
4259.500 |
|
|
|
TOTAL (A) |
125661.100 |
135610.000 |
109964.400 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of materials consumed |
80986.600 |
84725.800 |
71883.600 |
|
|
|
Changes in Inventories of Semi-finished/Finished goods |
(3037.400) |
453.700 |
(5323.200) |
|
|
|
Employees' benefits |
14690.700 |
14666.700 |
12730.000 |
|
|
|
Other expenses |
22967.500 |
19871.800 |
17393.700 |
|
|
|
Prior period items - Net credit |
(150.600) |
(62.400) |
(349.600) |
|
|
|
Inter account adjustments-raw material mining cost |
(521.700) |
(500.300) |
(491.000) |
|
|
|
TOTAL (B) |
114935.100 |
119155.300 |
95843.500 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
10726.000 |
16454.700 |
14120.900 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
3592.500 |
1906.000 |
1644.900 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
7133.500 |
14548.700 |
12476.000 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
1868.800 |
3448.600 |
2659.400 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
5264.700 |
11100.100 |
9816.600 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
1736.400 |
3585.500 |
3231.700 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
3528.300 |
7514.600 |
6584.900 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export of Goods |
5977.900 |
4200.500 |
4209.800 |
|
|
|
Other Earnings |
360.200 |
666.700 |
613.700 |
|
|
TOTAL EARNINGS |
6338.100 |
4867.200 |
4823.500 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
39960.600 |
50784.100 |
39667.800 |
|
|
|
Components and Spare parts |
890.200 |
767.200 |
405.600 |
|
|
|
Capital Goods |
1347.800 |
1926.000 |
4428.400 |
|
|
TOTAL IMPORTS |
42198.600 |
53477.300 |
44501.800 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
0.48 |
1.26 |
85.79 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
PAT / Total Income |
(%) |
2.81
|
5.54 |
5.99 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
4.35
|
8.39 |
9.29 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
3.68
|
10.54 |
10.65 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.04
|
0.08 |
0.07 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
0.39
|
0.19 |
0.09 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
0.98
|
1.18 |
1.45 |
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 |
78273.200 |
77273.200 |
63468.200 |
|
Reserves & Surplus |
54019.000 |
59319.700 |
61305.000 |
|
Net
worth |
132292.200 |
136592.900 |
124773.200 |
|
|
|
|
|
|
long-term borrowings |
0.000 |
0.000 |
12415.600 |
|
Short term borrowings |
11358.800 |
25751.400 |
36584.400 |
|
Total
borrowings |
11358.800 |
25751.400 |
49000.000 |
|
Debt/Equity
ratio |
0.086 |
0.189 |
0.393 |
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 |
105704.900 |
132326.100 |
121106.900 |
|
|
|
25.184 |
(8.478) |
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 |
105704.900 |
132326.100 |
121106.900 |
|
Profit |
6584.900 |
7514.600 |
3528.300 |
|
|
6.23% |
5.68% |
2.91% |
LOCAL AGENCY FURTHER INFORMATION
|
Sr. No. |
Check List by Info Agents |
Available in
Report (Yes / No) |
|
1] |
Year of Establishment |
Yes |
|
2] |
Locality of the firm |
Yes |
|
3] |
Constitutions of the firm |
Yes |
|
4] |
Premises details |
No |
|
5] |
Type of Business |
Yes |
|
6] |
Line of Business |
Yes |
|
7] |
Promoter's background |
Yes |
|
8] |
No. of employees |
Yes |
|
9] |
Name of person contacted |
No |
|
10] |
Designation of contact
person |
No |
|
11] |
Turnover of firm for last
three years |
Yes |
|
12] |
Profitability for last
three years |
Yes |
|
13] |
Reasons for variation
<> 20% |
-- |
|
14] |
Estimation for coming financial
year |
No |
|
15] |
Capital in the business |
Yes |
|
16] |
Details of sister
concerns |
Yes |
|
17] |
Major suppliers |
No |
|
18] |
Major customers |
No |
|
19] |
Payments terms |
No |
|
20] |
Export / Import details
(if applicable) |
No |
|
21] |
Market information |
-- |
|
22] |
Litigations that the firm
/ promoter involved in |
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
|
WP 18864 / 2013 |
WPSR 101634 / 2013 |
CASE IS:PENDING |
|
PETITIONER |
|
RESPONDENT |
|
M/S VENI
CONSTRUCTIONS, VISAKHAPATNAM |
VS |
CHAIRMAN &
M.D., M/S RASHTRIYA ISPAT NIGAM LTD., VIZAG & 3 O |
|
PET.ADV. : K
R SASIDHARAN NAIR |
|
RESP.ADV. :
|
|
SUBJECT: MISCELLANEOUS
MATTERS |
|
DISTRICT: VISAKHAPATNAM
|
|
FILING
DATE: 01-07-2013 |
POSTING
STAGE : ADMISSION (CENTRAL GOVT.) |
|
|
REG.
DATE : 02-07-2013 |
LISTING
DATE : 20-01-2014 |
STATUS : --------- |
|
HON'BLE
JUDGE(S): |
P NAVEEN RAO |
|
INDEX OF CHARGES
|
S.NO. |
CHARGE ID |
DATE OF CHARGE CREATION/MODIFICATION |
CHARGE AMOUNT SECURED |
CHARGE HOLDER |
ADDRESS |
SERVICE REQUEST NUMBER (SRN) |
|
1 |
80009964 |
01/07/2012 * |
2,548,500,000.00 |
BANK OF BARODA |
VADLAPUDI BRANCH,
C BLOCK, PROJECT OFFICE COMPLEX, STEEL PLANT, VISAKHAPATNAM - 530031, ANDHRA
PRADESH, INDIA |
B45537958 |
|
2 |
90139521 |
08/09/2006 * |
945,000,000.00 |
ANDHRA BANK |
VSP STEEL TOWNSHIP
BRANCH, UKKUNAGARAM, VISAKHAPATNAM - 530032, ANDHRA PRADESH, INDIA |
- |
|
3 |
80024382 |
17/02/2007 * |
500,000,000.00 |
THE HONGKONG AND
SHANGHAI BANKING CORPORATION LIMI |
NAGABRAHMA TOWERS,
7 G CATHEDRAL ROAD, CHENNAI - 600086, TAMILNADU, INDIA |
- |
|
4 |
80024384 |
08/02/2007 * |
500,000,000.00 |
IDBI BANK |
VISAKHAPATNAM
BRANCH, BALAJI'S MANGALGIRI CHAMBERS, 9/29/6 - 1, SIRIPURAM, VISAKHAPATNAM -
530003, ANDHRA PRADESH, INDIA |
- |
|
5 |
80024389 |
14/08/2007 * |
800,000,000.00 |
UCO BANK |
VSP STEEL
TOWNSHIP BRANCH, UKKUNAGARAM, VISAKHAPATNAM - 530032, ANDHRA PRADESH, INDIA |
A22538680 |
|
6 |
80003221 |
16/10/2009 * |
6,000,000,000.00 |
STATE BANK OF
HYDERABAD |
SECTOR -1, STEEL
PLANT, UKKUNAGARAM, VISAKHAPATNAM - 530032, ANDHRA PRADESH, INDIA |
A71890248 |
|
7 |
80009966 |
30/07/2012 * |
26,150,000,000.00 |
CANARA BANK |
STEEL PLANT
BRANCH, VISAKHAPATNAM - 530031, ANDHRA PRADESH, INDIA |
B58273053 |
|
8 |
90260209 |
30/11/2013 * |
63,200,000,000.00 |
STATE BANK OF
INDIA |
COMMERCIAL
BRANCH, # 43-29-54/8, NARONA ROAD, BALAJI METRO CHAMBERS, DONDAPARTHY,
VISAKHAPATNAM - 530016, ANDHRA PRADESH, INDIA |
B92563881 |
* Date of charge modification
UNSECURED LOANS
|
UNSECURED LOANS |
31.03.2013 (Rs.
In Millions) |
31.03.2012 (Rs.
In Millions) |
|
SHORT TERM BORROWINGS |
|
|
|
Working Capital Borrowings |
103.300 |
1559.500 |
|
Short Term Loans |
1934.700 |
2231.200 |
|
Short Term Foreign currency facilities |
25208.400 |
11161.600 |
|
Other Loans and Advances |
3475.800 |
1482.100 |
|
|
|
|
|
Total |
30722.200 |
16434.400 |
YEAR 2012-13
In the year 2012-13, subject excelled on all fronts securing
"Excellent" rating as per MOU with Government of India. A Turnover of
$13,553 Cr was achieved during the year despite a sluggish market in long
products. Many units including Blast Furnace3 were commissioned under the
Expansion project for expanding to 6.3 Mt of liquid steel. BF -3 has produced 1
Mt in the last one year of operation. The Company continued its strategic
initiatives, inter alia, by signing MOUs with Andhra Pradesh Mineral
Development Corporation and Railways.
MANAGEMENT DISCUSSION AND
ANALYSIS
GLOBAL ECONOMIC
ENVIRONMENT
As per International Monetary Fund (IMF) report on World Economic
Outlook (WEO) - April 2013, Global economic conditions have improved during the
past six months. The report forecasts real global GDP growth of 3.3 percent on
an annual average basis in 2013 about the same as the 3.2 percent growth seen
in 2012 and the IMF expects growth to rise to 4 percent in 2014. As per the
report, emerging market and developing economies are still going strong, but in
advanced economies, there appears to be a growing bifurcation between the
United States of America on one hand and the Euro area on the other. Private
demand in United States has been showing strength as credit and housing
.markets heal. In advanced economies, activity is expected to gradually
accelerate, starting in the second half of 2013.
OUTLOOK FOR THE
COMPANY IN 2013-14
The year 2013-14 is very crucial for the Company since the balance units of 6.3 Mtpa Expansion are set to be commissioned during the year. The MOU for the year 2013-14 signed with the Government of India envisaged a turnover of Rs. 160660.000 Millions, Production of Saleable Steel of 3.58 Mt. with a gross margin of Rs. 11810.000 Millions for "Excellent" MoU rating. This translates into an increase of about 20% in Saleable Steel production with corresponding increase in sales.
The Company looks forward for a stable and sustainable growth in FY 2013-14 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 5% for FY 2012-13 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 2013-14 is likely to be impacted due to decrease in sale prices and reduced steel demand thereby putting pressure on margins for the full year.
The rising interest costs and the excess capacity are the main concerns that are likely to continue in 2013-14 also, 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 to the neighboring countries. 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 between influencing factors to achieve an optical profit margin.
CONTINGENT
LIABILITIES:
|
Particulars |
31.03.2013 (Rs.
In Millions) |
31.03.2012 (Rs.
In Millions) |
|
Contractors / Suppliers / Customers |
5852.500 |
5334.600 |
|
Local Authorities - State Govt. |
1528.900 |
382.500 |
|
Sales Tax matters * |
16332.400 |
14958.300 |
|
Income Tax |
1955.200 |
1939.800 |
|
Customs / Excise duty |
2008.600 |
1719.000 |
|
R and D Cess |
33.800 |
33.800 |
|
Others |
4014.200 |
3635.800 |
|
|
|
|
|
Total |
31725.600 |
28003.800 |
(*) 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
Railway,
Lines and Sidings
Roads,
Bridges and Culverts
Buildings
Plant
and Equipments
Furniture
and Fixtures
Locomotives
Vehicles
Electrical
Installations
Water
Supply and Sewerage systems
Miscellaneous
Assets
Computer
Assets
Mining
Rights
PRESS RELEASE
TIME FOR RINL TO GO FOR BENCHMARKING IN STEEL MAKING: PANEL OF JUDEGES
07.02.2014
The Panel of Judges for Prime Minister’s trophy 2012-13 who are in RINL
to assess the best integrated steel plant in the country, today witnessed a
Corporate presentation of RINL highlighting the achievements during 2012-13 and
held discussions with the top management led by Sri P Madhusudan, CMD, RINL.
While complimenting the RINL’s performance, the Panel of Judges (POJ)
observed that this is the time for RINL to benchmark in areas of operations
with international standards and suggested to explore the possibility for a
foreign partner to achieve further benchmarking in Blast Furnace and other
operations. They highlighted the need to cut cost of production and mentioned that
the cost has to be controlled by departmental Heads with continuous monitoring
on daily basis to improve the bottom line. RINL has done a splendid job in
consumption of energy and water consumption, they praised.
They suggested that RINL has to give more impetus to R&D in order to
sustain and improve the technological development in steel making process. The
POJ also mentioned that hydrogen generated from Coke Oven gas is to be tapped
for utilization in Blast Furnaces for better productivity. “RINL has seen
many ups and downs from huge losses – BIFR- turn around – Mini Ratna - Navratna
and the present strong leadership should work hard to complete the projects and
ramp up the production to achieve further laurels in the Indian Steel
Industry”, observed Dr BN Singh and added that the achievements speak volumes
of muscle and mental power of entire RINL collective.
Sri P Madhusudan, CMD, RINL in his opening remarks said the Company is
in crucial juncture in completing the expansion, stabilization of new units and
ramping up of production and modernization of existing units.
Earlier, the POJ visited various production and expansion units and
witnessed the rolling of products from new Wire Rod Mill-2. The POJ also
witnessed presentations on R&D, Customer Satisfaction and on People
Management and interacted with representatives of WIPS, trade unions, SC &
ST association and Steel Executive Association.
The Panel of Judges comprising of Dr Surajit Mitra, Director, IIFT, Dr
BN Singh, Chief Technologist, Uttam Galva Metallic Ltd, Sri KAP Singh, former
MD, Bokaro Steel Plant, Dr T Mukherjee, former Dy. MD, Tata Steel, Prof PK Sen,
Dept of Metal Engg & Metal Science IIT, Kharagpur, Prof SK Singh, Head Dept
of Civil & Environment Engg, Delhi Tech University, Sri Jugal Kishore
Tandon, former CEO, JSW/Essar, Sri OP Bhutani, former Director & principal
Advisor, BHEL. Dr AS Firoz, Chief Economist, Economic Research Unit (ERU), Sri
P Prashanth, Addl Chief Economist, ERU and Sri Sunil Gupta, AGM, ERU
represented from the Prime Minister’s Trophy Secretariat.
Sri Umesh Chandra, Director (Operations), Sri YR Reddy, Director
(Personnel), Sri PC Mohapatra, Director (Projects), Executive Directors,
General Managers took part in the interaction. The POJ enthralled by “ahana”
– A cultural efflorescence conducted by the Visteel Mahila Samiti in honour
of the visiting dignitaries at Multi-Purpose Hall in Ukkunagaram later in the
evening. Members of Visteel Mahila Samiti, School Children of Ukkunagaram
presented various dance, musical & Skit. First Lady of Ukkunagaram Smt
Annapurna Gouri, President, VMS and other Vice-Presidents of VMS present on the
occasion.
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist organization
or whom notice had been received that all financial transactions involving
their assets have been blocked or convicted, found guilty or against whom a
judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No exist to suggest that subject is or was
the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent government
authority for any violation of anti-corruption laws or international anti-money
laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling shareholders,
director, officer or employee of the company is a government official or a
family member or close business associate of a Government official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs. 62.28 |
|
|
1 |
Rs. 103.67 |
|
Euro |
1 |
Rs. 85.18 |
INFORMATION DETAILS
|
Information
Gathered by : |
HTL |
|
|
|
|
Report Prepared
by : |
BVA |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--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 |
|
DEFAULTERS |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
64 |
This score serves as a reference to assess SC’s credit risk and
to set the amount of credit to be extended. It is calculated from a composite
of weighted scores obtained from each of the major sections of this report. The
assessed factors and their relative weights (as indicated through %) are as
follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively below
average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
-- |
NB |
New Business |
-- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.