MIRA INFORM REPORT
|
Report Date : |
07.07.2014 |
IDENTIFICATION DETAILS
|
Name : |
STEEL AUTHORITY OF INDIA LIMITED |
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Registered
Office : |
Ispat Bhawan, |
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Country : |
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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) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
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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 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
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
N E W S
The economy grew 4.7 %in 2013/14, marking a
second straight year of sub-5 % growth – the worst slowdown in more than a
quarter of a century. The data was below an official estimate of 4.9 % annual growth
and compared with 4.5 % in the last fiscal year. However, the current account
deficit narrowed sharply to $ 32.4 billion at 1.7 % of gross domestic product,
in 2013/14 from a record high of $ 98.8 billion or 4.7 %, the year before.A sharp fall in gold imports due to restrictions on
overseas purchases and muted import of capital goods helped shrink the current
account deficit.
Online retailer Flipkart
has acquired fashion portal Myntra as it prepares to
battle with the rapidly expanding India arm of the global e-commerce giant
Amazon. The company raised $ 210 million from Russian Investment firm DST
Global which has also invested in companies like Facebook,
Twitter and Alibaba Group.
General Motors will start exporting vehicles
from its Talegaon plant near Pune
in the second half of 2014. GM was one of the few global carmakers that was
using its India plant only for the domestic market.
Google has overtaken Apple as the world’s top
brand in terms of value, according to global market research agency Millward Brown. Google’s brand value shot up 40 % in a year
to $ 158.84 billion. The top 10 of the 100 slots were dominated by US
companies.
Infosys lost another heavy weight when B G Srinivas,
a board member put in his papers. He is the third CEO-hopeful to quit after
Chairman N R Narayana Murthy’s return to the company
– Ashok Vemuri and V Balakrishnan being the other two.While
Vemuri went on to lead IGate,
Balakrishnan joined politics.
Naresh Goyal – promoted Jet Airways posted biggest
quarterly loss – Rs 2153.37 crore
– in the three months ended March 31, mainly because it has been offering
discounts to passengers to fill planes.
William S Pinckney – Chairman and CEO of
Amway India was arrested by the Andhra Pradesh Police in connection with a
complaint against the direct selling firm. This is the second time that he has
been taken into custody. A year, ago the Kerala
Police had arrested Pinckney and two company directors on charges of financial
irregularities.
China has told its state-owned enterprises to
sever links with American consulting firms after the United States charged five
Chinese military officers wih hacking US companies.
China’s action which targets consultancies like McKinsey & Co. and the
Boston Consulting Group, sterns from fears that the first are providing trade
secrets to the US governments.
India has emerged as a country with some of
the highest unregistered businesses in the world. Indonesia has the maximum
number of shadow businesses, says a study of 68 countries by Imperial College
Business School in London.
Pfizer has abandoned its attempt to buy AstraZeneca for nearly $ 118 billion after the latter
refused an offer of 55 pounds a share.
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 |
|
Rating Agency Name |
CARE |
|
Rating |
Short term CP/ICD Programme
: A1+ |
|
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 |
|
Contact No.: |
91-11-24368092 |
LOCATIONS
|
Registered/ Corporate Office : |
Ispat Bhawan, Lodhi Road, New Delhi – 110003, India |
|
Tel. No.: |
91-11-24367481
(14 lines) |
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Fax No.: |
91-11-24367015 |
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E-Mail : |
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Website : |
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Factory : |
Integrated Steel
Plants
· Bhilai Steel Plant, Bhilai – 49000, Chhattisgarh, India · Durgapur Steel Plant, Bardhaman – 713203, West Bengal, India · Rourkela Steel Plant, Sundergarh – 769011, Orissa, India · Bokaro Steel Plant, Bokaro – 827001, Jharkhand, India · P. O. Hinoo, Ranchi – 834002, Jharkhand, India
Special Steel
Plants
· Alloy Steel Plants, Durgapur – 713208, West Bengal, India · Salem Steel Plant, Salem – 636013, Tamilnadu, India ·
Visvesvaraya Iron and Steel Plant, Bhadravati, |
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Sail Refractory
Unit : |
Bokaro Steel City, Bokaro – 827004, Jharkhand, India |
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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 |
|
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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|
|
|
|
|
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|
3304293713 |
80.01 |
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|
3304293713 |
80.01 |
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|
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Total shareholding of Promoter and Promoter Group (A) |
3304293713 |
80.01 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
29263779 |
0.71 |
|
|
129513499 |
3.14 |
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|
292953452 |
7.09 |
|
|
241684645 |
5.85 |
|
|
693415375 |
16.79 |
|
|
|
|
|
|
19146284 |
0.46 |
|
|
|
|
|
|
87704879 |
2.12 |
|
|
16525520 |
0.40 |
|
|
8985333 |
0.22 |
|
|
4805700 |
0.12 |
|
|
4179633 |
0.10 |
|
|
132362016 |
3.20 |
|
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 |
|
|
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 |
|
|
|
|
Pig Iron |
Tonnes |
2397000 |
260829 |
|
Crude Steel (i) |
Tonnes |
12487000 |
13453059 |
|
Saleable Steel |
Tonnes |
10740000 |
12324973 |
|
|
|
|
|
|
ALLOY STEELS
PLANTS |
|
|
|
|
Pig Iron |
Tonnes |
58000 |
2341 |
|
Crude Steel |
Tonnes |
352000 |
308733 |
|
Saleable Steel |
Tonnes |
457000 |
550238 |
NOTES:
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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|
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Statutory Auditors : |
|
|
Name : |
S.K. Mittal and Company Chartered Accountants O.P. Totla and Company Chartered
Accountants B.N. Misra and Company Chartered
Accountants |
|
|
|
|
Joint Venture : |
· SAIL Bansal Service Centre Limited Mjunction Services Limited UEC-SAIL
Information Technology Limited Romelt SAIL (India) Limited N.E
Steel and Galvanising Private Limited Bhilai Jaypee
Cement Limited Bokaro Jaypee
Cement Limited S
and T Mining Company Private Limited SAIL
Kobe Iron India Private Limited TMTSAL
SAIL JV Limited SAL
SAIL JVC Limited |
CAPITAL STRUCTURE
AS ON 31.03.2013
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
5000000000 |
Equity Shares |
Rs.10/- each |
Rs. 50000.000 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
4130525289 |
Equity Shares |
Rs.10/- each |
Rs. 41305.300 Millions |
|
|
|
|
|
NOTE
(i)
Reconciliation of equity shares at the end of the year
|
Particulars |
31st March, 2013 |
|
|
Numbers |
Rs. In millions |
|
|
– Equity shares with voting rights |
|
|
|
Shares outstanding at the beginning of the year |
4129934944 |
41299.349 |
|
Shares Issued / Converted into shares with Voting Rights during the year # |
136160 |
1.362 |
|
Shares bought back during the year |
-- |
-- |
|
Shares outstanding at the end of the year |
4130071104 |
41300.711 |
|
|
|
|
|
– Equity shares without voting rights * |
|
|
|
Shares outstanding at the beginning of the year |
590345 |
5.903 |
|
Shares Issued during the year |
|
|
|
Shares Issued / Converted into shares with Voting Rights during the year # |
136160 |
1.362 |
|
Shares outstanding at the end of the year |
454185 |
4.542 |
* Represented by one Global Depository Receipt (GDR) issued @ US$ 29.55 each for an aggregate amount of US $ 125 million
# Includes 124744 shares issued to shareholders of MEL on merger with the Company and 23900 shares arising out of conversion of GDR into ordinary shares during the previous year.
(ii) All shares rank equally with regard to the repayment of capital in the event of liquidation of the Company.
(iii) The Company does not have a holding Company
(iv) Details of the
shareholders holding more than 5% of the shares in the Company
|
Particulars |
31st March, 2013 |
|
|
No. of Shares held |
% of Holding |
|
|
President of India |
3304293713 |
80.00 |
(v) 1,24,43,82,900 equity shares of Rs.10 each (net of adjustment on reduction of capital) were allotted as fully paid up for consideration other than cash
(vi) The Company has neither issued bonus shares nor has
bought back any shares during the last 5 years
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES
OF FUNDS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
|
|
|
|
|
I.
EQUITY AND LIABILITIES |
|
|
|
|
(1)Shareholders' Funds |
|
|
|
|
(a) Share Capital |
41305.300 |
41305.300 |
41304.000 |
|
(b) Reserves & Surplus |
368941.100 |
356807.900 |
329390.700 |
|
(c) Money received against share
warrants |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
(2) Share Application money
pending allotment |
0.000 |
0.000 |
0.000 |
|
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 |
31.03.2014 |
|
Type |
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
4th
Quarter |
|
Net Sales |
102679.100 |
115355.100 |
114587.200 |
135092.100 |
|
Total Expenditure |
93006.500 |
106686.200 |
103267.400 |
122883.700 |
|
PBIDT (Excl OI) |
9672.600 |
8668.900 |
11319.800 |
12208.400 |
|
Other Income |
2261.700 |
1527.100 |
2088.000 |
1751.100 |
|
Operating Profit |
11934.300 |
10196.000 |
13407.800 |
13959.500 |
|
Interest |
1918.200 |
2164.800 |
2467.700 |
3125.700 |
|
Exceptional Items |
(878.800) |
9881.200 |
199.200 |
389.600 |
|
PBDT |
9137.300 |
17912.400 |
11139.300 |
11223.400 |
|
Depreciation |
3928.500 |
3988.000 |
4087.400 |
5163.000 |
|
Profit Before Tax |
5208.800 |
13924.400 |
7051.900 |
606.400 |
|
Tax |
699.700 |
2120.500 |
1725.900 |
1534.600 |
|
Provisions and contingencies |
0.000 |
0.000 |
0.000 |
0.000 |
|
Profit After Tax |
4509.100 |
11803.900 |
5326.000 |
4525.800 |
|
Extraordinary Items |
0.000 |
0.000 |
0.000 |
0.000 |
|
Prior Period Expenses |
0.000 |
0.000 |
0.000 |
0.000 |
|
Other Adjustments |
0.000 |
0.000 |
0.000 |
0.000 |
|
Net Profit |
4509.100 |
11803.900 |
5326.000 |
4525.800 |
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 AUDITED FINANCIAL RESULTS FOR THE QUARTER AND YEAR ENDED
31ST MARCH, 2014
PART I
(RS.
IN MILLIONS)
|
Sl. No |
Particulars |
Standalone Quarter ended |
Standalone Year ended |
||
|
3st March, 2014 |
31st December, 2013 |
31st March, 2014 |
|||
|
|
|
(Audited) |
(Unaudited) |
(Audited) |
|
|
1 |
(a) Net Sales / Income from operations |
|
|
|
|
|
|
i) Gross Sales |
149865.800 |
127162.800 |
518659.900 |
|
|
|
ii) Less : Excise Duty |
16765.700 |
13535.800 |
56772.900 |
|
|
|
Subtotal (a) (i-ii) |
133100.100 |
113627.000 |
461887.000 |
|
|
2 |
(b) Other operating income |
1992.000 |
635.400 |
5097.100 |
|
|
Total Income from Operations (net) |
135092.100 |
114262.400 |
466984.100 |
||
|
Expenses a) Changes in Inventories of Finished
Goods, Work in Progress and Stock-in-Trade |
14239.900 |
(3738.900) |
8946.300 |
||
|
|
b) Cost of Materials Consumed |
48295.800 |
50818.100 |
192711.600 |
|
|
|
c) Purchase of Stock in Trade |
1.400 |
0.700 |
7.800 |
|
|
|
d) Employee Benefits Expense |
25205.800 |
22678.000 |
95785.100 |
|
|
|
e) Power & Fuel |
12620.700 |
12298.300 |
49421.500 |
|
|
|
f) Depreciation and Amortisation
Expenses |
5163.000 |
4087.400 |
17166.900 |
|
|
|
g) Other Expenses |
22520.100 |
21211.200 |
78952.200 |
|
|
Total Expenses |
128046.700 |
107354.800 |
442991.400 |
||
|
|
|
|
|
||
|
3 |
Profit from Operations before Other Income, Finance Costs and Exceptional Items ( 1-2) |
7045.400 |
6907.600 |
23992.700 |
|
|
4 |
|
|
|
|
|
|
Other Income i) Interest Earned |
1563.200 |
1489.800 |
5841.300 |
||
|
|
ii) Other Income |
187.900 |
923.000 |
2496.700 |
|
|
Subtotal (i+ii) |
1751.100 |
2412.800 |
8338.000 |
||
|
|
|
|
|
||
|
5 6 |
Profit from ordinary activities before Finance Costs and
Exceptional Items ( 3+4) |
8796.500 |
9320.400 |
32330.700 |
|
|
Finance Cost |
3125.700 |
2467.700 |
9676.400 |
||
|
|
|
|
|
||
|
7 8 |
Profit from ordinary activities after Finance Costs but before
Exceptional Items ( 5-6) |
5670.800 |
6852.700 |
22654.300 |
|
|
Exceptional items |
|
|
|
||
|
|
Foreign Exchange Loss (-)/ Gain(+) |
389.600 |
199.200 |
(971.400) |
|
|
9 10 |
Compensation Received for Non-Performance
of Contract. |
0.000 |
0.000 |
1056.260 |
|
|
Profit from Ordinary Activities before Tax ( 7+8) |
|
|
|
||
|
Tax Expense |
|
|
|
||
|
|
(a) Current Tax |
1474.700 |
1391.800 |
6832.600 |
|
|
|
(b) Deferrred Tax Liability /
Assets ( - ) |
213.500 |
294.100 |
3319.700 |
|
|
|
(c) MAT Credit |
(1275.000) |
40.000 |
(5201.100) |
|
|
|
(d) Earlier
Years
|
1121.400 |
0.000 |
1129.500 |
|
|
Sub-Total ( a to d
) |
1534.600 |
1725.900 |
6080.700 |
||
|
|
|
|
|
||
|
11 |
Net Profit from Ordinary Activities after Tax ( 9-10 ) |
4525.800 |
5326.000 |
26164.800 |
|
|
12 |
Extraordinary Items (net of Tax Expense Rs. Nil) |
0.000 |
0.000 |
0.000 |
|
|
13 |
Net Profit for the Period (11-12) |
4525.800 |
5326.000 |
26164.800 |
|
|
14 |
Share of profit/(Loss) of Associate |
|
|
|
|
|
15 |
Minority Interest |
|
|
|
|
|
16 |
Net Profit after taxes, minority interest and share of profit/(Loss) of Associates |
4525.800 |
5326.000 |
26164.800 |
|
|
17 |
Paid up Equity Share Capital ( Face value : Rs.
10 per share ) |
41305.300 |
41305.300 |
41305.300 |
|
|
18 |
Reserves (Excluding Revaluation Reserve ) as per Balance Sheet of Previous Accounting Year |
|
|
|
|
|
19 |
Basic and Diluted Earnings per Share (of
Rs.10/- each) before and after
Extraordinary Items ( Not Annualised ) ( Rupees ) |
1.10 |
2.86 |
6.33 |
|
|
20 |
Debt Service Coverage Ratio (Number of times) |
|
|
3.86 |
|
|
21 |
Interest Service Coverage Ratio (Number of times) |
|
|
2.31 |
|
|
Sl. No |
Particulars |
Standalone Quarter ended |
Standalone Year ended |
||
|
3st March, 2014 |
31st December, 2013 |
3st March, 2014 |
|||
|
|
|
(Audited) |
(Unaudited) |
(Audited) |
|
|
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 |
80.00 |
80.00 |
|
|
|
Particulars
|
Quarter ended
31st Dec 2014 |
|
B
|
INVESTOR COMPLAINTS (Nos.) Pending at the
beginning of the quarter |
0 |
|
|
Received during the
quarter |
14 |
|
|
Disposed off during
the quarter |
14 |
|
|
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 its meeting held on 28th May, 2014. The
Audited Accounts are subject to review by the Comptroller and Auditor General
of India under section 619(4) of the Companies Act, 1956.
2. The
figures for the quarter ended 31st March, 2014, are the balancing
figures between the audited figures in respect of full financial year ended 31st
March, 2014 and the published year to date figures upto
the 3rd quarter ended 31st December, 2013.
3. The
Company has four Subsidiary Companies: a) IISCO Ujjain
Pipe and Foundry Co. Limited (IISCO-Ujjain), b) SAIL Jagdishpur Power Plant Limited, c) SAIL Refractory Company
Limited, d) SAIL Sindri Projects Limited. Except Rs. IISCO-Ujjain’, which is under
liquidation, the financial results of other subsidiary companies have been
considered in the preparation of consolidated financial results. The accounts
of joint ventures and associate companies have not been considered in the
preparation of consolidated financial results.
4. The
Board of Directors, in its meeting held on 14th February, 2014,
declared interim dividend of Rs.2.02 per equity share of Rs.10 each. No further
dividend is recommended by the Board for the Financial Year 2013-14.
5. Net
Sales include sales to Government agencies recognised
on provisional contact prices during the year ended 31st March, 2014:
Rs.32574.000 million (previous year: Rs.36179.000 million) and cumulatively upto 31st March, 2014: Rs.69001.900 million (upto previous year : Rs.182883.800 million).
6.
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 (EBE) and Expenditure during Construction (EDC) for the year ended 31st
March, 2014 are inclusive of wage revision arrears of non-executives upto 31st March, 2013, amounting to Rs.4313.000
million and Rs.19.200 million respectively.
7. Due to determination of contribution rate to
post-retirement medical benefit schemes for executive employees, based on
actuarial valuation, the provision for pension benefit component of
superannuation benefits for executives has been reduced. As a result, an excess
amount of other benefits for executives of Rs.2012.100 million in EBE and
Rs.96.300 million in EDC provided upto 31st March
2013, has been written back during the current quarter/year.
8. The
auditors in their limited review report for the Nine Months ended 31st
December, 2013 have brought out that the Company has not provided for :
a. entry tax amounting to Rs.882.000 million in the state of
Uttar Pradesh, Rs.10261.800 million in the state of Chhattisgarh
and Rs.2138.800 million in the state of Odisha;
b. claims of Rs.2667.200 million by DVC for supply of Power;
c.
income tax demand of Rs.876.200 million;
In
respect of items stated at (a) and (b) above, the Company’s views are 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 March, 2014. 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. In respect of item stated at (c) above, the Company has made the
provision towards the disputed income tax demands in the current quarter.
9. In
accordance with Companies (Accounting Standards) Amendment Rules, 2009,
relating to Accounting Standard – 11, notified on 31st March 2009 and amended
from time to time, the foreign exchange fluctuation loss on long-term foreign
currency loans of Rs.3404.400 million (net debit) for the current year
[Previous year- Rs.1345.300 million (net debit)], has been adjusted in the
carrying cost of the Fixed Assets/Capital Work-in-progress.
10.
Formulas used for computation of coverage ratios: Debt Service Coverage Ratio =
Earnings before interest, exceptional items and tax/principal and interest
repayment of long terms loans; and Interest Service Coverage Ratio = Earnings
before interest, exceptional items and tax/interest including transferred to
Capital Work in Progress.
11. The figures of previous periods have been re-grouped,
wherever necessary, to conform to current quarter/year’s 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.
MORE THAN 90,000 SAIL EMPLOYEES TO BENEFIT FROM HISTORIC WAGE AGREEMENT
New Delhi, 07/02/2014
New Delhi: In a significant move, the National Joint Committee for Steel Industry (NJCS) finalised wage settlement for non-executive employees of SAIL on 1st July, 2014 in the presence of Sri C.S. Verma, Chairman, SAIL. The wage settlement shall be effective from 01.01.2012 and would benefit more than 92,000 employees. The wage settlement was cleared pursuant to the Memorandum of Understanding dated 25.01.2014 and approval of the SAIL Board as well as clearance of Ministry of Steel, Govt. of India. Around a fortnight ago, Hon’ble Steel Minister – Sri Narendra Singh Tomar had approved the wage revision for SAIL employees which paved way for finalization of the wage settlement. The payment of wage arrears shall be made in two equal installments. The first installment shall be paid by 15th July, 2014
SAIL has enjoyed a healthy tradition of robust participative fora and has enjoyed harmonious industrial relations for more than forty years. In SAIL, wage revision for non-executive employees is finalised through negotiations at national level bi-partite forum namely NJCS which has been in existence since 1969 and has now successfully effected nine wage settlements.The signatories to the Agreement included Dr. Sanjeeva Reddy, INTUC, Sri Tapan Sen, CITU, Sri Gaya Singh, AITUC, Sri Rajendra Prasad Singha, HMS and several others representing the workmen and Sri H.S. Pati, Director (Personnel), SAIL, Sri Anil Kumar Chaudhary, Director (Finance),SAIL, Dr G.B.S. Prasad, Director (Personnel), RINL and other senior officers from the Management side.
SAIL REGISTERS 11% GROWTH IN MAY’14 SALES
Mon, 06/02/2014
New Delhi: Maintaining emphasis on higher sales, Steel Authority of India Limited (SAIL) registered an aggressive sales growth of 11% in May 2014, at 1.06 million tonnes (MT), compared to 0.96 MT in same month last year (SMLY). Rise in exports was to the tune of 76% on a y-o-y basis during the month. Production at SAIL plants kept pace with Hot Metal production of 1.26 MT achieved in May ’14, registering a y-o-y growth of 4%.
Optimistic about the ensuing period in current financial year, Chairman SAIL Mr CS Verma said, “We foresee the present thrust on infrastructure growth translate into higher demand of steel in the country. This certainly augurs very well for the industry, and SAIL is geared to meet this resurgent demand.”
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. 59.79 |
|
|
1 |
Rs. 102.66 |
|
Euro |
1 |
Rs. 81.32 |
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.