MIRA INFORM REPORT
|
Report Date : |
26.07.2014 |
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) : |
31.03.2014 |
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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 |
|
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 |
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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 |
|
Designation : |
DPT Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 30.06.2014
|
Category of
Shareholder |
Total
No. of Shares |
As a % |
|
(A) Shareholding of Promoter and
Promoter Group |
|
|
|
|
|
|
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|
3304293713 |
80.01 |
|
|
3304293713 |
80.01 |
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|
|
|
|
Total shareholding of Promoter
and Promoter Group (A) |
3304293713 |
80.01 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
27120207 |
0.66 |
|
|
118731100 |
2.87 |
|
|
298593156 |
7.23 |
|
|
243464158 |
5.89 |
|
|
687908621 |
16.66 |
|
|
|
|
|
|
24652720 |
0.60 |
|
|
|
|
|
|
86202675 |
2.09 |
|
|
17350249 |
0.42 |
|
|
9663126 |
0.23 |
|
|
4924493 |
0.12 |
|
|
4738633 |
0.11 |
|
|
137868770 |
3.34 |
|
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) |
4130071104 |
100.00 |
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 : |
NOTE SHORT TERM
BORROWINGS (a) Secured by hypothecation of all Current Assets. (b) The Company does not have any continuing default in
repayment of Loans and interest on the Balance Sheet date. |
|
|
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Banking
Relations : |
-- |
|
|
|
|
Financial Institution : |
IDBI Trusteeship Services Limited, Asian Building, Ground Floor, 17, R. Kamani Marg, Ballard Estate, Mumbai - 400001, Maharashtra, India |
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|
|
|
Statutory Auditors : |
|
|
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 31.03.2014
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 |
|
|
|
|
|
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES
OF FUNDS |
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
|
|
|
|
|
I.
EQUITY AND LIABILITIES |
|
|
|
|
(1)Shareholders' Funds |
|
|
|
|
(a) Share Capital |
41305.300 |
41305.300 |
41305.300 |
|
(b) Reserves & Surplus |
385358.200 |
368941.100 |
356807.900 |
|
(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) |
426663.500 |
410246.400 |
398113.200 |
|
|
|
|
|
|
(3) Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
136322.200 |
134855.500 |
115866.600 |
|
(b) Deferred tax liabilities
(Net) |
20404.600 |
17285.300 |
16444.800 |
|
(c) Other long term
liabilities |
13813.000 |
12711.200 |
13460.000 |
|
(d) long-term provisions |
39012.800 |
42041.600 |
35251.900 |
|
Total
Non-current Liabilities (3) |
209552.600 |
206893.600 |
181023.300 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a) Short term borrowings |
106344.800 |
80150.200 |
45105.500 |
|
(b) Trade payables |
32053.400 |
33220.400 |
32197.500 |
|
(c) Other current liabilities |
124785.100 |
86547.000 |
83960.300 |
|
(d) Short-term provisions |
20219.500 |
25127.000 |
22970.400 |
|
Total
Current Liabilities (4) |
283402.800 |
225044.600 |
184233.700 |
|
|
|
|
|
|
TOTAL |
919618.900 |
842184.600 |
763370.200 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
|
|
152346.300 |
157483.400 |
|
(ii) Intangible Assets |
|
15427.700 |
14099.300 |
|
(iii) Capital work-in-progress |
604211.900 |
358908.500 |
280491.400 |
|
(iv) Intangible assets under
development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current Investments |
7202.000 |
7183.600 |
6850.400 |
|
(c) Deferred tax assets (net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
37943.200 |
31651.700 |
26144.300 |
|
(e) Other Non-current assets |
1354.300 |
507.000 |
779.100 |
|
Total
Non-Current Assets |
650711.400 |
566024.800 |
485847.900 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a) Current investments |
0.000 |
0.000 |
0.000 |
|
(b) Inventories |
152008.200 |
160082.100 |
137423.700 |
|
(c) Trade receivables |
54819.800 |
44241.800 |
47487.700 |
|
(d) Cash and cash equivalents |
28559.500 |
38503.500 |
64157.000 |
|
(e) Short-term loans and
advances |
11605.100 |
9906.900 |
7846.100 |
|
(f) Other current assets |
21914.900 |
23425.500 |
20607.800 |
|
Total
Current Assets |
268907.500 |
276159.800 |
277522.300 |
|
|
|
|
|
|
TOTAL |
919618.900 |
842184.600 |
763370.200 |
PROFIT & LOSS ACCOUNT
|
|
PARTICULARS |
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
466984.100 |
445982.600 |
463351.200 |
|
|
|
Other Income |
8338.000 |
9644.400 |
16294.500 |
|
|
|
TOTAL (A) |
475322.100 |
455627.000 |
479645.700 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of Materials Consumed |
192711.600 |
211984.800 |
230208.200 |
|
|
|
Purchase of Stock in Trade |
7.800 |
32.100 |
48.800 |
|
|
|
Power and Fuel |
49421.500 |
86372.000 |
79320.500 |
|
|
|
Employee Benefits Expense |
95785.100 |
|
|
|
|
|
Other Expenses |
78952.200 |
121608.100 |
107071.700 |
|
|
|
Exceptional Items |
-9591.200 |
2293.200 |
2620.200 |
|
|
|
Adjustments pertaining to Earlier Years |
0.000 |
(415.300) |
105.400 |
|
|
|
Changes in Inventories of Finished Goods, Work in Progress
and Stock in Trade |
8946.300 |
(20160.900) |
(13685.100) |
|
|
|
TOTAL (B) |
416233.300 |
401714.000 |
405689.700 |
|
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) BEFORE INTEREST, TAX,
DEPRECIATION AND AMORTISATION (A-B) (C) |
59088.800 |
53913.000 |
73956.000 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
9676.400 |
7476.600 |
6777.000 |
|
|
|
|
|
|
|
|
|
|
PROFIT
/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
49412.400 |
46436.400 |
67179.000 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
17166.900 |
14029.800 |
15670.300 |
|
|
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) BEFORE TAX (E-F) (G) |
32245.500 |
32406.600 |
51508.700 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
6080.700 |
10703.100 |
16081.500 |
|
|
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) AFTER TAX (G-H) (I) |
26164.800 |
21703.500 |
35427.200 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export of goods(Calculated on FOB basis) |
NA |
11579.500 |
12300.100 |
|
|
TOTAL EARNINGS |
NA |
11579.500 |
12300.100 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
NA |
128862.600 |
160738.000 |
|
|
|
Stores, Spares and Components |
NA |
5083.500 |
4251.300 |
|
|
|
Capital Goods |
NA |
13692.200 |
12269.600 |
|
|
TOTAL IMPORTS |
NA |
147638.300 |
177258.900 |
|
|
|
|
|
|
|
|
|
|
Earnings /
(Loss) Per Share (Rs.) |
6.33 |
5.25 |
8.58 |
|
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.
KEY RATIOS
|
PARTICULARS |
|
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
PAT / Total Income |
(%) |
5.50 |
4.76 |
7.39 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
6.91 |
7.27 |
11.12 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
10.46 |
6.81 |
10.82 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.08 |
0.08 |
0.13 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
0.57 |
0.52 |
0.40 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
0.95 |
1.23 |
1.51 |
FINANCIAL ANALYSIS
[all figures are
in Rupees Millions]
DEBT EQUITY RATIO
|
Particular |
31.03.2012 |
31.03.2013 |
31.03.2014 |
|
|
(Rs.
In Millions) |
(Rs.
In Millions) |
(Rs.
In Millions) |
|
Share Capital |
41305.300 |
41305.300 |
41305.300 |
|
Reserves & Surplus |
356807.900 |
368941.100 |
385358.200 |
|
Net
worth |
398113.200 |
410246.400 |
426663.500 |
|
|
|
|
|
|
long-term borrowings |
115866.600 |
134855.500 |
136322.200 |
|
Short term borrowings |
45105.500 |
80150.200 |
106344.800 |
|
Total
borrowings |
160972.100 |
215005.700 |
242667.000 |
|
Debt/Equity
ratio |
0.404 |
0.524 |
0.569 |
YEAR-ON-YEAR GROWTH
|
Year
on Year Growth |
31.03.2012 |
31.03.2013 |
31.03.2014 |
|
|
(Rs.
In Millions) |
(Rs.
In Millions) |
(Rs.
In Millions) |
|
Sales |
463351.200 |
445982.600 |
466984.100 |
|
|
|
-3.748 |
4.709 |
NET PROFIT MARGIN
|
Net
Profit Margin |
31.03.2012 |
31.03.2013 |
31.03.2014 |
|
|
(Rs.
In Millions) |
(Rs.
In Millions) |
(Rs.
In Millions) |
|
Sales |
463351.200 |
445982.600 |
466984.100 |
|
Profit |
35427.200 |
21703.500 |
26164.800 |
|
|
7.65% |
4.87% |
5.60% |
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
ITA 342/2013
COMMISSIONER OF INCOME TAX-III
..... Appellant
Through Mr. Sanjeev Rajpal, Sr. Standing Counsel.
versus
STEEL AUTHORITY OF INDIA
LIMITED
..... Respondent
Through Ms. Monika Garg, Advocate.
CORAM:
HON'BLE MR. JUSTICE SANJIV KHANNA
HON'BLE MR. JUSTICE SANJEEV SACHDEVA
ORDER
11.10.2013
Having heard learned counsel for the parties, we admit the following
substantial questions of law for decision:
(1) Whether the Income Tax Appellate Tribunal was correct in
deleting the addition of Rs.6.580 Millions made to the income of
the respondent rejecting its claim for depreciation on water supply and
sewage treatment plant
(2) Whether the Income Tax Appellate Tribunal was correct in deleting the addition of Rs.144.500 Millions made to the income of the respondent on account of disallowance of fluctuation in the foreign exchange
(3) Whether the Income Tax Appellate Tribunal was correct in deleting the
addition of Rs.2186 lac made to income of the respondent rejecting its
claim for provision for long service award during the relevant year
With regard to depreciation on computer fibre network systems, we do not think
any substantial question of law arises for consideration as fibre network
system is a computer peripheral as held by the tribunal and depreciation at the
rate of 60% is applicable to computer and computer peripherals.
Filing of printed paper book is dispensed with. Parties are, however,
given liberty to file documents/papers, which were filed before the
authorities/tribunal in accordance with Delhi High Court Rules.
To be listed in due course along with connected appeals.
SANJIV KHANNA, J.
SANJEEV SACHDEVA, J.
OCTOBER 11, 2013
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) |
|
LONG TERM
BORROWINGS |
|
|
Taxable Redeemable Non-convertible Bonds |
0.000 |
|
Term Loans |
52663.200 |
|
Others |
2042.300 |
|
SHORT TERM
BORROWINGS |
|
|
Other Loans and
Advances |
|
|
Other Loans |
4000.000 |
|
Commercial Paper |
0.000 |
|
Foreign Currency Loans |
68838.600 |
|
Total |
127544.100 |
CONTINGENT
LIABILITIES:
|
PARTICULARS |
31.03.2013 (Rs. in
millions) |
|
(i) Claims against the Company pending appellate/judicial decisions : |
|
|
a) Excise Duty |
11207.300 |
|
b) Sales Tax on inter-state stock transfers from plants to stockyards* |
7409.400 |
|
c) Other sales tax matters |
1721.900 |
|
d) Income Tax |
7973.000 |
|
e) Other duties, cess and levies |
21518.200 |
|
f) Civil matters ** |
8316.100 |
|
g) Entry Tax |
11661.800 |
|
h) Miscellaneous ** |
4494.100 |
|
* 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 |
|
b) Duties, cess and levies |
2503.800 |
|
c) Civil Matters |
230.300 |
|
d) Miscellaneous $ |
54987.100 |
|
$ 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 |
|
|
|
|
(iv) Bills drawn on customers and discounted with banks |
668.900 |
|
|
|
|
(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 exist to suggest that subject is or was
the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial Crime
:
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or investigation
registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent
government authority for any violation of anti-corruption laws or international
anti-money laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws, regulations
or policies that prohibit, restrict or otherwise affect the terms and
conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs. 60.14 |
|
|
1 |
Rs. 102.22 |
|
Euro |
1 |
Rs. 81.02 |
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.