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MIRA INFORM REPORT
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Report No. : |
484045 |
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Report Date : |
01.01.2018 |
IDENTIFICATION DETAILS
|
Name : |
TATA STEEL LIMITED
(w.e.f.12.08.2005) |
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Formerly Known
As : |
TATA IRON AND STEEL COMPANY LIMITED |
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Registered
Office : |
Bombay House, 24, Homi Mody Street, Fort, Mumbai - 400001, Maharashtra |
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Tel. No.: |
91-22-66658282/ 26850373 |
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Country : |
India |
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Financials (as
on) : |
31.03.2017 |
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Date of
Incorporation : |
26.08.1907 |
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Com. Reg. No.: |
11-000260 |
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Capital
Investment / Paid-up Capital : |
INR 9714.100 Million |
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CIN No.: [Company Identification
No.] |
L27100MH1907PLC000260 |
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IEC No.: |
0388039124 |
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GST No.: |
Not Divulged |
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TAN No.: [Tax Deduction &
Collection Account No.] |
Not Available |
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PAN No.: [Permanent Account No.] |
AAACT2803M |
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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
: |
The Company’s operations predominantly related to Manufacturer
of Steel, Steel Products and Ferro Alloys and Minerals business. Other
business segments comprise Tubes and Bearings. (Registered Activity) |
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No. of Employees
: |
34989 (Approximately) |
RATING & COMMENTS
(Mira Inform has adopted New Rating mechanism w.e.f. 23rd
January 2017)
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MIRA’s Rating : |
A++ |
|
Credit Rating |
Explanation |
Rating Comments |
|
A++ |
Minimum Risk |
Business dealings permissible with minimum
risk of default |
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Maximum Credit Limit : |
USD 1480000000 |
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Status : |
Excellent |
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Payment Behaviour : |
Regular |
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Litigation : |
Exist |
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Comments : |
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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
|
Country Name |
Previous Rating (30.06.2017) |
Current Rating (30.09.2017) |
|
India |
A1 |
A1 |
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Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
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Low Risk |
A2 |
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Moderately Low Risk |
B1 |
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Moderate Risk |
B2 |
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Moderately High Risk |
C1 |
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High Risk |
C2 |
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Very High Risk |
D |
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
31-03-2016.
BIFR (Board for Industrial & Financial Reconstruction) LISTING
STATUS
Subject’s name is not listed as a Sick Unit in
the publicly available BIFR (Board for Industrial & Financial
Reconstruction) list as of 01.01.2018.
IBBI (Insolvency and Bankruptcy Board of India) LISTING STATUS
Subject’s name is not listed in the publicly
available IBBI (Insolvency and Bankruptcy Board of India) list as of report
date.
LOCATIONS
|
Registered Office : |
Bombay House, 24, Homi Mody Street, Fort, Mumbai - 400001,
Maharashtra, India |
|
Tel. No.: |
91-22-66658282/ 26850373/ 67496000/ 66650522 |
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Mobile No.: |
91-8336971888 [Mr. Raghu Vara Teja] |
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Fax No.: |
91-22-66657724/ 22049522 |
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E-Mail : |
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Website : |
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Sales Offices: |
Chettinad Sigapi Achi Balding, 8th Floor, 18/3 Rukmani Lakshmipathy Road, Egmore, Chennai - 600 008, Tamilnadu, India Also Located at: EAST · Bhubaneshwar · Guwahati · Jamshedpur · Kolkata · Patna · Raipur · Siliguri WEST · Ahmedabad · Indore · Aurangabad · Mumbai · Nagpur · Pune NORTH · Chandigarh · Faridabad · Delhi · Kanpur · Ghaziabad · Jaipur · Ludhiana · Uttarakhand SOUTH · Bangalore · Coimbatore · Hyderabad · Kochi · Vijaywada |
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Plant Locations : |
TATA STEEL
JAMSHEDPUR PLANT Tata Steel Limited Bistupur, Jamshedpur – 831001, Jharkhand, India TATA STEEL
KALINGANAGAR PLANT Tata Steel Limited Kalinganagar Industrial Complex Duburi, Dist. Jajpur– 755026, Odisha, India STEEL WORKS CRM
BARA CRM Bara, Bara Area Near Timken India Ltd. P.O. Agrico, Jamshedpur - 831 009, Jharkhand, India TATA GROWTH SHOP Tata Steel Growth Shop P.O. Gamharia, Jamshedpur, East Singhum - 832 101, Jharkhand, India TUBES DIVISION Tata Steel Limited P.O. Burma Mines Jamshedpur - 831 007, Jharkhand, India JODA EAST IRON ORE
MINE Joda Central Organisation Tata Steel Limited, Joda Dist. Keonjhar- 758 034, Odisha, India KHONDBOND IRON MINE Joda Central Organisation Tata Steel Limited, Joda Dist. Keonjhar- 758 034, Odisha, India COLD ROLLING
COMPLEX Tata Steel Cold Rolling Mill Complex Plot No S 76, Tarapur MIDC, P.O. Boisar, Dist. Palghar - 401 506, Maharashtra, India WIRE DIVISION,
TARAPUR Tata Steel Limited – Wire Division Plot F8 & A6, Tarapur MIDC, P.O. Boisar, Dist. Palghar - 401 506, Maharashtra, India WIRE DIVISION, INDORE Indore - Tata Steel Limited – Wire Division Plot 14/15/16 & 32 Industrial Estate Laxmibai Nagar, Fort Indore- 452 006, Madhya Pradesh, India WIRE DIVISION,
PITHAMPUR Pithampur Wire Division Plot 158 & 158A, Sector III, Industrial Estate, Pithampur- 454 774, Madhya Pradesh, India BEARINGS DIVISION Tata Steel Limited P.O. Rakha Jungle Nimpura Industrial Estate Kharagpur- 721 301, West Bengal, India CHROMITE MINE,
SUKINDA Tata Steel Limited-Sukinda Chromite Mine P.O. Kalarangiatta, Dist. Jajpur- 755 028, Odisha, India IRON ORE MINES Tata Steel Limited West Singbhum, Noamundi- 833 217, Jharkhand, India KATAMATI IRON MINE Tata Steel Limited PO Deojhar, Dist. Keonjhar- 758 034, Odisha, India FERRO ALLOYS PLANT Tata Steel Limited P.O. Bamnipal, Dist. Keonjhar- 758 082, Odisha, India JODA WEST MANGANESE
MINES Tata Steel Limited P.O. Bichakundi, Joda, Dist- 758 034. Keonjhar, Odisha, India BAMEBARI MANGANESE
MINES Tata Steel Limited P.O. Bamebari, Via: Joda, Dist. Keonjhar- 758 086, Odisha, India GOMARDIH DOLOMITE
QUARRY Tata Steel Limited P.O. Tunmura, Dist. Sundergarh- 770 070, Odisha, India JHARIA COLLIERIES
DIVISION Tata Steel Limited Jamadoba, Dhanbad- 828 112, Jharkhand, India WEST BOKARO
DIVISION Tata Steel Limited Ghatotand. Dist. Ramgarh- 825 314, Jharkhand, India HOOGHLY MET COKE
DIVISION Tata Steel Limited Patikhali, Haldia, Purba, Medinipur- 721 606, West Bengal, India FERRO ALLOY PLANT,
JODA Tata Steel Limited – Joda Dist. Keonjhar- 758034, Odisha, India
FERRO CHROME PLANT Tata Steel Limited – Gopalpur Project PO – Chamakhandi, Chatrapur Tahsil Dist. Ganjam– 761020, Odisha, India FERRO ALLOYS AND
MINERALS DIVISION Tata Centre, Ferro Alloys And Minerals Division, 12th Floor, 43, Jawaharlal Nehru Road, Kolkata-700071, West Bengal, India |
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Marketing
Headquarters : |
Tata Centre, 3rd Floor, 43 Jawaharlal Nehru Road, Kolkata-700071, West Bengal, India |
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Tel. No.: |
91-33-22887051/ 9251/ 3061/ 1851 |
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Fax No.: |
91-33-22886996 |
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Regional Office : |
Jeevan Bharti Building, Tower 1, 7th Floor, 124, Connaught Circus, New Delhi – 110001, India |
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Other Regional
Offices : |
Located at: East · Kolkata · Jamshedpur · Patna · Bhubaneshwar · Guwahati West · Ahmedabad · Indore ·
Mumbai North · Ludhiana · Haryana ·
Kanpur South · Bangalore · Chennai ·
Secunderabad |
DIRECTORS
AS ON 31.03.2017
|
Name : |
Mr. Dinesh Kumar Mehrotra |
|
Designation : |
Director |
|
Address: |
C-1, Jeevan Jyot, Setalvad Lane, Nepean Sea Road, Mumbai - 400026,
Maharashtra, India |
|
Date of Appointment : |
22.10.2012 |
|
Profile : |
Mr. Mehrotra (63) served
as the Chairman of Life Insurance Corporation of India. He serves on several
Boards including Tata AIA Life Insurance, Multi Commodity Exchange of India and NSE
Strategic Investment Corporation. Mr. Mehrotra holds an Honours Graduate
Degree in Science from the University of Patna. |
|
DIN No.: |
00142711 |
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Name : |
Mr. Om Prakash Bhatt |
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Designation : |
Director |
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Address: |
03, Ground Floor, Seagull, M L Dahanukar Marg, Mumbai - 400026,
Maharashtra, India |
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Date of Appointment : |
10.06.2013 |
|
Profile : |
Mr. Bhatt (65) served as the
Chairman of State Bank of India, India’s largest commercial bank. He serves
on several Boards including Tata Consultancy Services, Hindustan Unilever and
Standard Chartered. Mr. Bhatt holds a Graduate Degree in Science and a
Master’s in English Literature. |
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DIN No.: |
00548091 |
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Name : |
Mr. Narendran Viswanath Thachat |
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Designation : |
Managing Director |
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Address: |
Bungalow No. 5 C Road, Northern Town, Jamshedpur-831001,
Jharkhand, India |
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Date of Appointment : |
14.08.2014 |
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DIN No.: |
03083605 |
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Name : |
Mr. Aman Mehta |
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Designation : |
Additional Director |
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Address: |
115A, Jor Bagh, New Delhi - 110003, India |
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Date of Appointment : |
29.03.2017 |
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DIN No.: |
00009364 |
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Name : |
Mr. Chandrasekaran Natarajan |
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Designation : |
Additional Director |
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Address: |
201/202 Sagar Darshan 8, Worli Seaface Mumbai - 400030, Maharashtra, India |
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Date of Appointment : |
13.01.2017 |
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DIN No.: |
00121863 |
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Name : |
Mr. Koushik Chatterjee |
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Designation : |
Group Executive Director (F&C) and
Executive Director – Europe |
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Address: |
NCPA Residential Apts. A Wing, 22nd Floor , Flat No. 221 , Nariman
Point, Mumbai - 400021, Maharashtra, India |
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Date of Appointment : |
09.11.2012 |
|
Profile : |
Mr. Chatterjee (47) is in
charge of Finance and all Corporate Functions. He is also the Executive
Director for our European Operations. Since 1995, he has served the Company and Tata Sons in
various roles. Mr. Chatterjee holds an Honours Graduate Degree in Commerce
from the Calcutta University and is a Fellow Member of the Institute of
Chartered Accountants of India. |
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DIN No.: |
00004989 |
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Name : |
Mr. Andrew
Mackenzie Robb |
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Designation : |
Director |
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Address: |
16, Hillgate Place, London, W87SJ, United Kingdom |
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Date of Appointment : |
12.11.2014 |
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Profile : |
Mr. Robb (73) is the
Chairman of Tata Steel Europe and serves as Director on the Board of Jaguar Land
Rover. In the past, he served as the Director (Finance) of the Peninsular
& Oriental Steam Navigation Co. and Pilkington Group. He is a Fellow
Member of the Chartered Institute of Management Accountants and holds a Joint
Diploma in Management Accounting. |
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DIN No.: |
01911023 |
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Name : |
Mrs. Mallika Srinivasan |
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Designation : |
Director |
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Address: |
Westside House, 3, Adyar Club Gate Road, Chennai - 600028, Tamilnadu,
India |
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Date of Birth/Age: |
56 Years |
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Date of Appointment : |
21.05.2012 |
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Profile : |
Ms. Srinivasan (56) is
the Chairperson and CEO of Tractors and Farm Equipment Limited. She serves on
several Boards including AGCO Corporation and Tata Global Beverages. Ms.
Srinivasan holds an MBA from the Wharton School of Business, University of
Pennsylvania and Master’s Degree in Econometrics from the University of
Madras. |
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DIN No.: |
00037022 |
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Name : |
Mr. Narendran Viswanath Thachat |
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Designation : |
Managing Director |
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Address: |
Bungalow No. 5 C Road, Northern Town, Jamshedpur - 831001, Jharkhand, India |
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Date of Appointment : |
14.08.2014 |
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DIN No.: |
03083605 |
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Name : |
Mr. Nusli Neville Wadia |
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Designation : |
Director |
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Address: |
Beach House, P. Balu Marg, Prabhadevi, Mumbai - 400025, Maharashtra,
India |
|
Profile : |
Mr. Wadia (72) is
foremost amongst famous Indian industrialists. He is the Chairman of the Wadia
Group and Bombay Dyeing, companies that are amongst the most respected and
widely diversified business houses in the corporate world. He serves on the
Board of several companies including Tata Motors, Tata Chemicals and
Britannia Industries. |
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Date of Appointment : |
29.08.1979 |
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DIN No.: |
00015731 |
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Name : |
Mr. Ishaat Hussain |
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Designation : |
Director |
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Address: |
222-A NCPA Apartments, Nariman Point, Mumbai - 400021, Maharashtra,
India |
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Profile : |
Mr. Hussain (68) serves on
the Board of several Tata Group Companies including Tata Sons, Tata
Consultancy Services, Voltas and Tata Sky. In the past, he was the Executive
Director (Finance) at Tata Steel. Mr. Hussain graduated in Economics from St.
Stephen's College, New Delhi. He is a Fellow of the Institute of Chartered
Accountants in England and Wales. |
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Date of Appointment : |
15.07.1999 |
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DIN No.: |
00027891 |
KEY EXECUTIVES
|
Name : |
Mr. Kanchinadham Parvatheesam |
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Designation : |
Company Secretary |
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Address: |
A 203, Nagarjuna Gardens, F Block Sahakaranagar, Bangalore-560092, Karnataka, India |
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Date of Appointment : |
12.01.2015 |
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PAN No.: |
AGRPK4646B |
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|
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|
Name : |
Mr. Koushik Chattrejee |
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Designation : |
Chief Financial Officer |
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Address: |
NCPA Residential Apartments, A Wing, 22nd Floor, Flat No.221, Nariman Point, Mumbai - 400021, Maharashtra, India |
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Date of Appointment : |
14.05.2014 |
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PAN No.: |
AETPC4136N |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 30.09.2017
|
Category
of shareholder |
Total nos. shares held |
Shareholding as a % of total no. of shares (calculated as per SCRR,
1957)As a % of (A+B+C2) |
|
(A) Promoter & Promoter Group |
304502341 |
31.35 |
|
(B) Public |
651756051 |
68.65 |
|
|
|
|
|
Grand Total |
955905756 |
100.00 |
STATEMENT SHOWING
SHAREHOLDING PATTERN OF THE PROMOTER AND PROMOTER GROUP
|
Category of shareholder |
Total nos. shares held |
Shareholding as a % of total no. of shares
(calculated as per SCRR, 1957)As a % of (A+B+C2) |
|
|
A1) Indian |
0.00 |
||
|
Any Other
(specify) |
304502341 |
31.35 |
|
|
TATA SONS LIMITED |
288898245 |
29.75 |
|
|
TATA MOTORS
LIMITED |
4432497 |
0.46 |
|
|
TATA INVESTMENT
CORPORATION LIMITED |
3385885 |
0.35 |
|
|
TATA CHEMICALS LTD |
2491977 |
0.26 |
|
|
EWART INVESTMENTS
LIMITED |
1795142 |
0.18 |
|
|
RUJUVALIKA
INVESTMENTS LIMITED |
1168393 |
0.12 |
|
|
SIR DORABJI TATA
TRUST |
842460 |
0.09 |
|
|
TATA INDUSTRIES LIMITED |
791675 |
0.08 |
|
|
SHEBA PROPERTIES
LIMITED |
491542 |
0.05 |
|
|
SIR RATAN TATA
TRUST |
189000 |
0.02 |
|
|
TATA CAPITAL LTD |
13500 |
0.00 |
|
|
TITAN COMPANY
LIMITED |
2025 |
0.00 |
|
|
Sub Total A1 |
304502341 |
31.35 |
|
|
A2) Foreign |
0.00 |
||
|
A=A1+A2 |
304502341 |
31.35 |
STATEMENT SHOWING
SHAREHOLDING PATTERN OF THE PUBLIC SHAREHOLDER:
|
Category & Name of the Shareholders |
No. of fully paid up equity shares held |
Shareholding % calculated as per SCRR, 1957
As a % of (A+B+C2) |
|
|
|||
|
|||
|
|||
|
B1) Institutions |
0 |
0.00 |
|
|
Mutual Funds/ |
135766749 |
13.98 |
|
|
Hdfc Trustee
Company Limited |
41507497 |
4.27 |
|
|
Reliance Capital
Trustee Co Limited |
25922649 |
2.67 |
|
|
ICICI Prudential
Mutual Fund |
21754261 |
2.24 |
|
|
DSP Blackrock Mutual
Funds |
12155457 |
1.25 |
|
|
Alternate
Investment Funds |
108968 |
0.01 |
|
|
Foreign Portfolio
Investors |
152064557 |
15.66 |
|
|
Government Pension
Fund Global |
10768995 |
1.11 |
|
|
Financial
Institutions/ Banks |
4370634 |
0.45 |
|
|
Insurance
Companies |
147466019 |
15.18 |
|
|
Life Insurance
Corporation of India |
103054313 |
10.61 |
|
|
The New India
Assurance Co Ltd |
9951058 |
1.02 |
|
|
Any Other
(specify) |
440737 |
0.05 |
|
|
Foreign National
-DR |
164 |
0.00 |
|
|
Foreign Bodies -
DR |
433414 |
0.04 |
|
|
Foreign Portfolio
Investments-Individual |
892 |
0.00 |
|
|
Foreign- National |
642 |
0.00 |
|
|
Overseas Corporate
Bodies |
5625 |
0.00 |
|
|
Sub Total B1 |
440217664 |
45.33 |
|
|
B2) Central
Government/ State Government(s)/ President of India |
0 |
0.00 |
|
|
Central Government/
State Government(s)/ President of India |
731259 |
0.08 |
|
|
Sub Total B2 |
731259 |
0.08 |
|
|
B3)
Non-Institutions |
0 |
0.00 |
|
|
Individual share
capital upto INR 0.200 Million |
162801728 |
16.76 |
|
|
Individual share capital
in excess of INR 0.200 Million |
23999209 |
2.47 |
|
|
NBFCs registered
with RBI |
43257 |
0.00 |
|
|
Overseas
Depositories (holding DRs) (balancing figure) |
0 |
1.54 |
|
|
Citibank N.A. New
York, Nyadr Dept |
0 |
1.54 |
|
|
Any Other
(specify) |
23962934 |
2.47 |
|
|
Bodies Corporate |
23962934 |
2.47 |
|
|
Sub Total B3 |
210807128 |
23.25 |
|
|
B=B1+B2+B3 |
651756051 |
68.65 |
BUSINESS DETAILS
|
Line of Business : |
The Company’s operations predominantly related to
Manufacturer of Steel, Steel Products and Ferro Alloys and Minerals business.
Other business segments comprise Tubes and Bearings. (Registered Activity) |
|
|
|
|
Brand Names : |
· Tiscon · Tata Astrum · Galvano · Tata Steelium · Tata Structura · Tata Shaktee · Pravesh · Tata Wiron · TATA |
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Agencies Held : |
Not Available |
|
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Exports : |
Not Available |
|
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|
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Imports : |
Not Available |
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|
|
Terms : |
|
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Selling : |
Not Available |
|
|
|
|
Purchasing : |
Not Available |
PRODUCTION STATUS: (NOT AVAILABLE)
GENERAL INFORMATION
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Suppliers : |
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Customers : |
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No. of Employees : |
34,989 (Approximately) |
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Bankers : |
· State Bank of India · Bank of America · Central Bank of India · Bank of Baroda · Canara Bank · Central Bank of India · Union Bank of India |
|||||||||||||||||||||||||||
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Facilities : |
|
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Financial Institutions : |
· Power Finance Corporation Limited 'Urjanidhi', 1, Barakhamba Lane, Connaught Place, New Delhi -110001, India · IDBI Trusteeship Services Limited Asian Building, Ground Floor, 17, R. Kamani Marg, Ballard Estate, Mumbai-400001, Maharashtra, India |
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|
|
Auditors : |
|
|
Name : |
Deloitte Haskin and Sells LLP Chartered Accountants |
|
Address : |
Indiabulls Finance Centre Tower 3, 27th – 32nd
Floor, Senapati Bapat Marg, Elphinstone Road (West), Mumbai – 400013,
Maharashtra, India |
|
Tel. No.: |
91-22-61854000 |
|
Fax No.: |
91-22-61854101 |
|
|
|
|
Memberships : |
Not Available |
|
|
|
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Collaborators : |
Not Available |
|
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|
Associates/ Subsidiaries : |
NOTE: RELATED
PARTY DETAILS FILE ATTACHED |
CAPITAL STRUCTURE
AFTER 08.08.2017
Authorised Capital : INR 83500.000 Million
Issued Subscribed & Paid-up Capital : INR 9712.159
Million
AS ON 31.03.2017
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
1750000000 |
Ordinary Shares |
INR 10/- each |
INR 17500.000 Million |
|
350000000 |
"A" Ordinary Shares |
INR 10/- each |
INR 3500.000 Million |
|
25000000 |
Cumulative Redeemable Preference Shares |
INR 100/- each |
INR 2500.000 Million |
|
600000000 |
Cumulative Convertible Preference Shares |
INR 100/- each |
INR 60000.000 Million |
|
Total |
|
|
INR 83500.000
Million |
Issued Capital:
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
972126020 |
Ordinary Shares |
INR 10/- each |
INR 9721.300
Million |
|
|
|
|
|
Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
971215439 |
Ordinary Shares |
INR 10/- each |
INR 9712.100
Million |
|
|
Amount paid up on 389516 Ordinary Shares forfeited |
INR 10/- each |
INR 2.000
Million |
|
|
Total |
|
INR 9714.100 Million |
Subscribed and
paid up capital excludes 11,68,393 Ordinary shares (March 31, 2016: 11,68,393 shares
and April 1, 2015: Nil) were held by a wholly owned subsidiary.
The movement in
subscribed and paid up share capital is as below:
|
Particulars |
As at March
31, 2017 |
|
|
Ordinary
shares of INR 10 each |
No. of
shares |
INR in
Million |
|
Balance at the beginning of the year |
971215439 |
9712.100 |
|
Balance at the end of the year |
971215439 |
9712.100 |
As at March 31, 2017: 301183 Ordinary
Shares (March 31, 2016: 301183 Ordinary Shares; April 1, 2015: 301183 Ordinary Shares)
are kept in abeyance in respect of rights issue of 2007.
Details of
shareholders holding more than 5 percent shares in the Company are as below:
15510420 shares (March 31, 2016: 22514584 shares; April 1, 2015: 17907847 shares) of face value of INR 10 per share represent the shares underlying GDRs which were issued during 1994 and 2009. Each GDR represents one underlying Ordinary share.
The rights, powers and preferences relating to each class of share capital and the qualifications, limitations and restrictions thereof are contained in the Memorandum and Articles of Association of the Company.
FINANCIAL DATA
[all figures are
in INR Million]
ABRIDGED
BALANCE SHEET
|
SOURCES OF FUNDS |
31.03.2017 |
31.03.2016 |
31.03.2015 |
|
I.
EQUITY AND LIABILITIES |
|
|
|
|
(1)Shareholders' Funds |
|
|
|
|
(a) Share Capital |
9714.100 |
9714.100 |
9714.100 |
|
(b) Reserves & Surplus |
486876.000 |
456659.700 |
492179.000 |
|
(c) Money received against share warrants |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
(2) Share
Application money pending allotment |
0.000 |
0.000 |
0.000 |
|
(3) Hybrid Perpetual
Securities |
22750.000 |
22750.000 |
22750.000 |
|
Total
Shareholders’ Funds (1) + (2) |
519340.100 |
489123.800 |
524643.100 |
|
|
|
|
|
|
(3)
Non-Current Liabilities |
|
|
|
|
(a) Long-term borrowings |
246943.700 |
239267.600 |
24316100 |
|
(b) Deferred tax liabilities (Net) |
61112.700 |
56107.000 |
62315.500 |
|
(c)
Other long term liabilities |
36446.900 |
40702.400 |
47873.400 |
|
(d)
long-term provisions |
20247.400 |
18620.500 |
13209.900 |
|
Total
Non-current Liabilities (3) |
364750.700 |
354697.500 |
366559.800 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a)
Short term borrowings |
32396.700 |
58880.00 |
8197.400 |
|
(b)
Trade payables |
107174.400 |
61968.800 |
49359.600 |
|
(c)
Other current liabilities |
83986.200 |
83668.100 |
105743.600 |
|
(d)
Short-term provisions |
7006.00 |
2806.400 |
1829.900 |
|
Total
Current Liabilities (4) |
230563.300 |
207323.300 |
165130.500 |
|
|
|
|
|
|
TOTAL |
1114654.100 |
1051144.600 |
1056333.400 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a)
Fixed Assets |
|
|
|
|
(i)
Tangible assets |
717789.700 |
495610.500 |
508824.800 |
|
(ii)
Intangible Assets |
7881.800 |
5273.400 |
1771.400 |
|
(iii)
Capital work-in-progress |
61253.500 |
281740.100 |
241537.800 |
|
(iv) Intangible assets under development |
386.100 |
318.700 |
164.600 |
|
(b) Non-current
Investments |
83559.000 |
74604.200 |
140020.200 |
|
(c) Deferred tax assets
(net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan
and Advances |
11593.300 |
10813.400 |
9670.100 |
|
(e)
Other Non-current assets |
31216.400 |
33251.800 |
28458.700 |
|
Total
Non-Current Assets |
913679.800 |
901612.100 |
930447.600 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a)
Current investments |
53098.100 |
43250.00 |
10011.500 |
|
(b)
Inventories |
102368.500 |
71373.800 |
80233.500 |
|
(c)
Trade receivables |
20065.200 |
11331.700 |
10570.200 |
|
(d)
Cash and cash equivalents |
9703.100 |
10361.300 |
5518.200 |
|
(e)
Short-term loans and advances |
271.400 |
187.500 |
820.400 |
|
(f)
Other current assets |
15468.00 |
13028.200 |
18732.00 |
|
Total
Current Assets |
200974.300 |
149532.500 |
125885.800 |
|
|
|
|
|
|
TOTAL |
1114654.100 |
1051144.600 |
1056333.400 |
PROFIT
& LOSS ACCOUNT
|
|
PARTICULARS |
31.03.2017 |
31.03.2016 |
31.03.2015 |
|
|
|
SALES |
|
|
|
|
|
|
|
Revenue from Operations |
532609.600 |
426974.400 |
417850.000 |
|
|
|
Other Income |
4144.600 |
3911.600 |
5827.800 |
|
|
|
TOTAL (A) |
536754.200 |
430886.000 |
423677.800 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of Materials Consumed |
124967.800 |
97000.100 |
116786.000 |
|
|
|
Purchases of Stock-in-Trade |
8811.800 |
9915.400 |
6883.200 |
|
|
|
Changes in inventories of
finished goods, work-in-progress and Stock-in-Trade |
(13296.500) |
707.500 |
(7159.400) |
|
|
|
Employees benefits expense |
46051.300 |
43198.900 |
46019.200 |
|
|
|
Other expenses |
249490.900 |
206023.500 |
161099.900 |
|
|
|
Expenditure (other than
interest) transferred to Capital and Other Accounts |
(2175.200) |
(5988.900) |
(5866.900) |
|
|
|
Exceptional Items |
7033.800 |
16492.800 |
(18908.500) |
|
|
|
TOTAL (B) |
420883.900 |
367349.300 |
298853.500 |
|
|
|
|
|
|
|
|
|
PROFIT/(LOSS)
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
115870.300 |
63536.700 |
124824.300 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
26885.500 |
18480.500 |
19759.500 |
|
|
|
|
|
|
|
|
|
|
PROFIT/(LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION
(C-D) (E) |
88984.800 |
45056.200 |
105064.800 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
35415.500 |
29622.800 |
19975.900 |
|
|
|
|
|
|
|
|
|
|
PROFIT/(LOSS) BEFORE TAX (E-F) (G) |
53569.300 |
15433.400 |
85088.900 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
19123.800 |
5876.900 |
20697.700 |
|
|
|
|
|
|
|
|
|
|
PROFIT/(LOSS) AFTER TAX (G-H) (I) |
34445.500 |
9556.500 |
64391.200 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export
of steel and other materials |
|
10013.700 |
8837.900 |
|
|
|
Interest
received |
|
225.800 |
787.700 |
|
|
|
Others |
|
656.500 |
258.200 |
|
|
TOTAL EARNINGS |
39965.500 |
10896.000 |
9883.800 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw
materials |
|
44068.700 |
75706.600 |
|
|
|
Semi-finished
products |
|
6852.600 |
3987.000 |
|
|
|
Components,
stores and spare parts |
|
6799.300 |
6187.500 |
|
|
|
Capital
Goods |
|
5982.900 |
6962.100 |
|
|
TOTAL IMPORTS |
102980.000 |
63703.500 |
92843.200 |
|
|
|
|
|
|
|
|
|
|
Earnings/(Loss) Per Share (INR) |
33.67 |
8.05 |
64.49 |
|
CURRENT MATURITIES OF LONG TERM DEBT DETAILS
|
Particulars |
31.03.2017 |
31.03.2016 |
31.03.2015 |
|
Current Maturities of Long term Borrowings |
2379.000 |
9287.700 |
42631.900 |
|
|
|
|
|
|
Cash Generated from Operations |
126721.300 |
86159.000 |
69051.700 |
|
|
|
|
|
|
Net Cash Flow from/(used in) Operating Activities |
111312.600 |
73718.000 |
48518.900 |
KEY
RATIOS
EFFICIENCY RATIOS
|
PARTICULARS |
31.03.2017 |
31.03.2016 |
31.03.2015 |
|
Average Collection Days (Sundry
Debtors / Income * 365 Days) |
13.75 |
9.69 |
9.23 |
|
|
|
|
|
|
Account Receivables Turnover (Income / Sundry Debtors) |
26.54 |
37.68 |
39.53 |
|
|
|
|
|
|
Average Payment Days (Sundry Creditors / Purchases * 365 Days) |
292.41 |
211.56 |
171.24 |
|
|
|
|
|
|
Inventory Turnover (Operating Income / Inventories) |
1.13 |
0.89 |
1.55 |
|
|
|
|
|
|
Asset Turnover (Operating Income / Net Fixed Assets) |
0.15 |
0.08 |
0.26 |
LEVERAGE RATIOS
|
PARTICULARS |
31.03.2017 |
31.03.2016 |
31.03.2015 |
|
Debt Ratio ((Borrowing
+ Current Liabilities) / Total Assets) |
0.43 |
0.43 |
0.43 |
|
|
|
|
|
|
Debt Equity Ratio (Total Liability / Networth) |
0.54 |
0.63 |
0.56 |
|
|
|
|
|
|
Current Liabilities to Networth (Current Liabilities / Net Worth) |
0.44 |
0.42 |
0.31 |
|
|
|
|
|
|
Fixed Assets to Networth (Net Fixed Assets / Networth) |
1.52 |
1.60 |
1.43 |
|
|
|
|
|
|
Interest Coverage Ratio (PBIT / Financial Charges) |
4.31 |
3.44 |
6.32 |
PROFITABILITY RATIOS
|
PARTICULARS |
|
31.03.2017 |
31.03.2016 |
31.03.2015 |
|
Net Profit Margin ((PAT / Sales) * 100) |
% |
10.06 |
3.61 |
20.36 |
|
|
|
|
|
|
|
Return on Total Assets ((PAT / Total Assets) * 100) |
% |
4.81 |
1.47 |
8.06 |
|
|
|
|
|
|
|
Return on Investment (ROI) ((PAT / Networth) * 100) |
% |
10.31 |
3.16 |
16.22 |
SOLVENCY RATIOS
|
PARTICULARS |
31.03.2017 |
31.03.2016 |
31.03.2015 |
|
Current Ratio (Current
Assets / Current Liabilities) |
0.87 |
0.72 |
0.76 |
|
|
|
|
|
|
Quick Ratio ((Current Assets – Inventories) / Current
Liabilities) |
0.43 |
0.38 |
0.28 |
|
|
|
|
|
|
G-Score Ratio Financial (Networth / Total Assets) |
0.47 |
0.47 |
0.50 |
|
|
|
|
|
|
G-Score Ratio Debt (Debts / Equity Capital) |
29.00 |
31.65 |
30.26 |
|
|
|
|
|
|
G-Score Ratio Liquidity (Total Current Assets / Total Current Liabilities) |
0.87 |
0.72 |
0.76 |
STOCK
PRICES
|
Face Value |
INR 10.00/- |
|
|
|
|
Market Value |
INR 729.40/- |
FINANCIAL DATA
[all figures are in
INR Million]
DEBT EQUITY RATIO
|
Particulars |
31.03.2015 |
31.03.2016 |
31.03.2017 |
|
|
INR
In Million |
INR
In Million |
INR
In Million |
|
Share Capital |
9714.100 |
9714.100 |
9714.100 |
|
Reserves & Surplus |
492179.000 |
456659.700 |
486876.000 |
|
Share Application money
pending allotment |
0.000 |
0.000 |
0.000 |
|
Hybrid Perpetual Securities |
22750.000 |
22750.000 |
22750.000 |
|
Net
worth |
524643.100 |
489123.800 |
519340.100 |
|
|
|
|
|
|
Long-term borrowings |
243161.000 |
239267.600 |
246943.700 |
|
Short term borrowings |
8197.400 |
58880.000 |
32396.700 |
|
Current Maturities of Long
term debt |
42631.900 |
9287.700 |
2379.000 |
|
Total
borrowings |
293990.300 |
307435.300 |
281719.400 |
|
Debt/Equity
ratio |
0.560 |
0.629 |
0.542 |
YEAR-ON-YEAR GROWTH
|
Year
on Year Growth |
31.03.2015 |
31.03.2016 |
31.03.2017 |
|
|
INR
In Million |
INR
In Million |
INR
In Million |
|
Sales |
417850.000 |
426974.400 |
532609.600 |
|
|
|
2.184 |
24.740 |
NET PROFIT MARGIN
|
Net
Profit Margin |
31.03.2015 |
31.03.2016 |
31.03.2017 |
|
|
INR
In Million |
INR
In Million |
INR
In Million |
|
Sales |
417850.000 |
426974.400 |
532609.600 |
|
Profit |
85088.900 |
15433.400 |
53569.300 |
|
|
20.36% |
3.61% |
10.06% |
LEGAL CASES
|
Bench:- Bombay |
|||||
|
Presentation Date:- 24.02.2016 |
|||||
|
|
|||||
|
Lodging No:- |
ITXAL/142/2016 |
Failing Date:- 24.02.2016 |
Reg. No.: - ITXA/725/2016 |
Reg. Date:- 29.04.2016 |
|
|
|
|||||
|
Petitioner:- |
THE PR. COMMISSIONER OF INCOME TAX |
Respondent:- |
TATA STEEL LIMITED – |
||
|
Petn.Adv:- |
SURESH KUMAR (I2100) |
||||
|
District:- |
MUMBAI |
||||
|
Bench:- |
DIVISION |
Category: |
TAX APPEALS |
||
|
Status:- |
Pre-Admission |
Stage:- |
- |
||
|
Last Date:- |
08/02/2017 |
||||
|
Last Coram:- |
ACCORDING TO SITTING LIST ACCORDING TO SITTING LIST |
||||
|
Act:- |
Income Tax Act, 1961 |
Under Section |
260A |
||
LOCAL AGENCY FURTHER INFORMATION
|
Sr. No. |
Check list by
info agents |
Available in
Report (Yes/No) |
|
1 |
Year of establishment |
Yes |
|
2 |
Constitution of the entity -Incorporation
details |
Yes |
|
3 |
Locality of the entity |
Yes |
|
4 |
Premises details |
No |
|
5 |
Buyer visit details |
-- |
|
6 |
Contact numbers |
Yes |
|
7 |
Name of the person contacted |
No |
|
8 |
Designation of contact person |
No |
|
9 |
Promoter’s background |
Yes |
|
10 |
Date of Birth of Proprietor / Partners / Directors |
Yes |
|
11 |
Pan Card No. of Proprietor / Partners |
No |
|
12 |
Voter Id Card No. of Proprietor / Partners |
No |
|
13 |
Type of business |
Yes |
|
14 |
Line of Business |
Yes |
|
15 |
Export/import details (if applicable) |
No |
|
16 |
No. of employees |
Yes |
|
17 |
Details of sister concerns |
Yes |
|
18 |
Major suppliers |
No |
|
19 |
Major customers |
No |
|
20 |
Banking Details |
Yes |
|
21 |
Banking facility details |
Yes |
|
22 |
Conduct of the banking account |
-- |
|
23 |
Financials, if provided |
Yes |
|
24 |
Capital in the business |
Yes |
|
25 |
Last accounts filed at ROC, if applicable |
Yes |
|
26 |
Turnover of firm for last three years |
Yes |
|
27 |
Reasons for variation <> 20% |
-- |
|
28 |
Estimation for coming financial year |
No |
|
29 |
Profitability for last three years |
Yes |
|
30 |
Major shareholders, if available |
Yes |
|
31 |
Litigations that the firm/promoter
involved in |
Yes |
|
32 |
Market information |
-- |
|
33 |
Payments terms |
No |
|
34 |
Negative Reporting by Auditors in the
Annual Report |
No |
INDEX OF CHARGES
|
SNo |
SRN |
Charge Id |
Charge Holder Name |
Date of Creation |
Date of Modification |
Date of Satisfaction |
Amount |
Address |
|
1 |
C79999967 |
10523027 |
POWER FINANCE CORPORATION LIMITED |
23/09/2014 |
20/01/2016 |
- |
6907500000.0 |
'URJANIDHI', 1,BARAKHAMBA LANE,CONNAUGHT
PLACE,NEW DELHIDL110001IN |
|
2 |
B09107665 |
10275985 |
IDBI TRUSTEESHIP SERVICES LIMITED |
22/03/2011 |
- |
- |
25000000000.0 |
Asian Bldg., Ground Floor, 17, R.Kamani
Marg,Ballard Estate,MUMBAIMH400001IN |
|
3 |
B09107228 |
10284537 |
IDBI TRUSTEESHIP SERVICES LIMITED |
21/03/2011 |
- |
- |
5000000000.0 |
Asian Bldg., Ground Floor, 17, R.Kamani
Marg,Ballard Estate,MUMBAIMH400001IN |
|
4 |
A85590131 |
10221539 |
STATE BANK OF INDIA |
23/03/2010 |
- |
- |
900000000.0 |
CORPORATE ACCOUNTS GROUP BRANCH2ND FLOOR,
RELIANCE HOUSE, 34 JAWAHARLAL NEHRU RDKOLKATAWB700071IN |
|
5 |
A64008121 |
10162776 |
IDBI TRUSTEESHIP SERVICES LIMITED |
03/06/2009 |
- |
- |
15000000000.0 |
Asian Bldg., Ground Floor, 17, R.Kamani
Marg,Ballard Estate,MUMBAI- 400 001.MH400001IN |
|
6 |
A55101307 |
10139603 |
IDBI TRUSTEESHIP SERVICES LIMITED |
22/01/2009 |
- |
- |
32500000000.0 |
Asian Bldg., Ground Floor, 17, R.Kamani
Marg,Ballard Estate,MUMBAI- 400 001.MH400001IN |
|
7 |
A35934983 |
10087868 |
STATE BANK OF INDIA - LEAD BANK |
22/01/2008 |
31/03/2008 |
- |
2250000000.0 |
CORPORATE ACCOUNTS GROUP BRANCH34, J L NEHRU
ROADKOLKATAWB700071IN |
|
8 |
A88501382 |
10022079 |
STATE BANK OF INDIA |
03/10/2006 |
15/06/2010 |
- |
20000000000.0 |
STATE BANK BHAVANMADAME CAMA
ROADMUMBAIMH400021IN |
|
9 |
A18062745 |
80032265 |
STATE BANK OF INDIA (LEAD BANK) |
06/01/2006 |
14/06/2007 |
- |
3370000000.0 |
CORPORATE ACCOUNTS GROUP BRANCH 2ND
FLOORRELIANCE HOUSE, 34 J L NEHRU ROADKOLKATAWB700071IN |
|
10 |
Y10326183 |
90223392 |
STATE BANK OF INDIA |
03/11/2002 |
21/03/2002 |
- |
3000000000.0 |
CORPORATE ACCOUNTS GROUP BRANCH; 20TH
FLOOREXPREE TOWER; NARIMAN POINTBOMBAYMH400021IN |
UNSECURED LOANS:
|
PARTICULARS |
31.03.2017 (INR
In Million) |
31.03.2016 (INR
In Million) |
|
LONG-TERM BORROWINGS |
|
|
|
Non-convertible debentures |
101757.000 |
90230.300 |
|
|
|
|
|
SHORT TERM BORROWINGS |
|
|
|
Term loans from banks and financial institutions |
99594.900 |
110319.500 |
|
Finance lease obligations |
21385.300 |
15328.700 |
|
Loans from banks and financial institutions |
8341.900 |
26316.900 |
|
Commercial papers |
22743.600 |
32348.500 |
|
|
|
|
|
Total |
253822.700 |
274543.900 |
ECONOMIC OUTLOOK
According to International Monetary Fund (‘IMF’), global growth is projected to rise to 3.5% in 2017 and 3.6% in 2018, moving closer to the long-term growth trend of 4%. The outlook indicates a likely up cycle of modest recovery after three successive shocks – the global financial crisis of 2007-09, the Eurozone crisis of 2009-13 and decline in commodity prices during 2014-15. However, the uncertainty with respect to sustainable growth remains. While the continued recovery and gradual closing of output gaps are likely to maintain growth momentum in the advanced economies over the next few years, supportive policy and adjusting to current price levels by commodity exporting countries are expected to aid growth in emerging and developing economies.
US growth is expected to recover as investments increase and domestic policies aid growth. The euro area recovery is expected to proceed at a broadly similar pace in 2017–18 as in 2016. The modest recovery is projected to be supported by a mildly expansionary fiscal stance, accommodative financial conditions and a weaker euro. The medium-term outlook for the euro area is likely to be impacted by weak productivity, adverse demographics, and, in some countries, unresolved legacy problems of public and private debt overhang, with a high level of non-performing loans. Further, uncertainty about the European Union’s future relationship with the United Kingdom (‘UK’) is expected to weigh on economic activity. China is expected to continue its gradual economic transition to a more service economy and coupled with partial recovery in commodity prices, it is expected to drive growth in certain emerging and developing economies.
As per IMF, India is expected to grow at 7.2% in 2017 and surpass the UK and France in 2017 to become the world’s fifth largest economy. The macro-economic stability with inflation below 5% continues to be the foundation of economic success which is reflected by growth in its key sectors - agriculture, industrial and services. Government initiatives like Make-in-India, Invest India, Start Up India and e-biz Mission Mode Project under the national e-governance plan are helping to improve ease of doing business in the country. In addition, the biggest tax reform since Independence, Goods and Services Tax (‘GST’) will help simplify India’s tax regime and is likely to boost GDP and reduce inflation in the long-term despite the threat of a potential slowdown in economic activity during the transition to the GST in the near term.
However, structural issues continue to pose a significant risk to the growth cycle. Firstly, initiative of the US Government of advancing ‘Buy American Hire American’ and political trends in Europe and elsewhere suggest a rising wave of protectionism which may lead to reversals of trade liberalization and geo-political conflicts. Secondly, economic policy uncertainty continues to be high, given USA’s expansive pro-growth reforms and China taking lead in globalization 2.0. This poses a risk of high level of volatility in the financial markets. Thirdly, debt and deficits among emerging market and developing economies are on the rise making them susceptible to increase in borrowing costs. Fourthly, outcome of the Brexit negotiations is likely to impact the pace of recovery in
UK as well as Eurozone economy.
STEEL INDUSTRY
Global Steel Industry
Global steel markets recovered during Financial Year 2016-17 registering better than estimated production & demand growth. During the year, the global steel demand grew by 1% to 1.52 billion tonnes on the back of stronger than expected demand growth in China (1.3%) coupled with optimism on supply-side structural reforms and restocking. The crude steel production was 1.63 billion tonnes, up by 0.8% compared to the previous year. China remains the world’s largest crude steel producer with the production at 0.8 billion tonnes. China’s apparent steel consumption has continued to remain structurally below its production level leading to exports of 0.1 billion tonnes in spite of global protectionism. The global capacity utilization ratio remained around 70% in spite of proactive measures being undertaken in China and Europe. For instance, Chinese Government intends to reduce steel production capacity by 100-150 million tonnes by 2020, and has also announced merger of two major Chinese steel producers in the previous year.
The overcapacity of steel production in the developing world particularly in China has weighed on global steel prices for quite some time. During the year under review, the raw material prices remained volatile especially for coking coal due to supply related issues. In addition, prolonged oversupply in iron ore has led to lower level for raw material prices despite steel realizations getting support from cost push as raw material prices fluctuated on supply issues in the second half of 2016. However, regulatory measures announced by the Indian Government during the year have continued to aid domestic steel prices. The Indian steel industry has increased its capacity in the recent years, though the demand growth has remained muted. This has resulted in financial stress in the balance sheet of the steel players. The Government of India and the Reserve Bank of India is currently deeply engaged to find a structural solution to the above issue. The domestic crude steel capacity rose to 122 million tonnes, an increase of 11% year-onyear while the production of finished steel was around 101 million tonnes. The Financial Year 2016-17, saw a modest consumption growth of 3% due to low growth in construction sector and impact of demonetisation and a sharp decline in imports as domestic supply rebounded to the extent that India became a net exporter of steel, after a gap of three years.
In Europe, anti-dumping legislation, currency movement, growth in apparent demand and low inventory levels have led to an increase in demand by 2% to 155 million tonnes compared to 2015. During the year, the total activity in the steel end use sectors especially automotive rose by 1.7%, similar to the previous two years.
Outlook for Steel Industry
As per the World Steel Association (‘WSA’), global steel demand is expected to grow at 1.3% in 2017 to 1.54 billion tonnes and a further 0.9% in 2018 to 1.55 billion tonnes. Recovery in developed economies and accelerating growth in emerging and developing markets especially Russia, Brazil and India is expected to aid demand growth and keep inventory levels low which in turn is expected to support global steel prices. However, low level of capacity reduction than targeted by nations and continued oversupply in raw materials especially iron ore are likely to weigh down on the prices in the absence of effective trade measures and/ or increase in steel demand. China’s steel demand which accounts for 45% of global steel demand is expected to be flat this year at 681 million tonnes while falling by 2% to 667 million tonnes in 2018. However, as per WSA, steel demand in emerging and developing economies excluding China is expected to grow at 4-5% per annum in the next two years to 475 million tonnes. In addition, the advanced economies are expected to grow at 1% for the next two years.
India’s prospects continue to remain bright albeit with few short-term headwinds in the form of imports and surplus capacity. Proactive policy measures by the Government are expected to address most of these concerns. For instance, a Steel Price Monitoring Committee was formed by the Government with an aim to monitor price rationalization, analyse price fluctuations and advise all concerned regarding any irrational price behaviour of steel commodity. As per WSA, steel demand in India is expected to grow at 6-7% per annum in the next two years, compared to 4% in 2016.
European prospects for 2017 and 2018 are mildly positive. As per WSA, EU is expected to grow at 0.5–1.5% per annum in the next two years due to improving domestic demand with private consumption as key driver in 2017 and investment taking over the lead in 2018. The Government measures to counter cheap imports would support domestic prices in the near term. In addition, weaker euro is expected to improve domestic competitiveness against imports.
OPERATIONS AND
PERFORMANCE
1. Tata Steel
Group
During the year, the Tata Steel Group (‘the Group’) recorded total deliveries of 23.88 million tonnes (previous year - 23.54 million tonnes). The steel deliveries increased at Tata Steel India by 15%, primarily due to ramp up of the Kalinganagar Steel Plant. This increase was offset by lower deliveries at Tata Steel Europe by 9% due to sale of the long products business and closure of Llanwern mill to focus on higher value sales mix.
During the year, the turnover for the Group was at INR 1174200.000 million, an increase of 10% over the previous year. he growth is largely driven by strong performance from Indian Operations with volume growth in steel and ferro alloys business and supportive global pricing environment. The Group EBITDA was `17,025 crore, an increase of 114% ompared to previous year EBITDA of `7,951 crore. This improvement comes on the back of strong global market conditions, strong volume growth in India and the impact of the implementation of transformation program and estructuring efforts in Europe to improve the underlying performance. During the year, the industry witnessed recovery in steel prices mainly driven by increase in coking coal and iron ore prices improvement in underlying global demand and lower seaborne imports. However, the timing and extent of continued price recovery or the sustenance of the current demand cycle is uncertain. In response to recent declines and higher volatility in steel and raw material prices, the Company has implemented a number of cost-saving measures intended to improve operating income as well as measures to enhance cash generation from the business.
The Group reported a consolidated loss after tax (including discontinuing operations) of INR 41690.000 million as against a loss of INR 4970.000 million in the previous year. The year’s loss includes an exceptional charge of INR 43240.000 million mainly due to British Steel Pension Scheme (‘BSPS’) curtailment charges, while an exceptional gain of INR 39900.000 million was recorded in the Financial Year 2015-16.
STANDALONE FINANCIAL RESULT FOR THE QUARTER ENDED ON 30TH
JUNE 2017
|
Sr. No.: |
Particulars |
Quarter
ended |
Quarter
ended |
Six
moths ended |
|
|
|
30.09.2017 |
30.06.2017 |
30.09.2017 |
|
1 |
Revenue from
operations |
|
|
|
|
|
a) Gross sales/income from operations |
139103.600 |
142867.300 |
281970.900 |
|
|
b) Other operating income |
3105.700 |
1349.900 |
4455.600 |
|
|
Total revenue from
operation |
142209.300 |
144217.200 |
286426.500 |
|
|
|
|
|
|
|
2 |
Other Income |
2494.800 |
1121.400 |
3616.200 |
|
3 |
Total Income (1+2) |
144704.100 |
145338.600 |
290042.700 |
|
|
|
|
|
|
|
4 |
Expenses |
|
|
|
|
|
a) Raw material consumed |
44489.800 |
42195.800 |
86685.600 |
|
|
Purchase of finished, semi-finished steel and other products |
812.600 |
2625.700 |
3438.300 |
|
|
c) Changes in inventories of finished goods, work-in-progress and Stock-in-Trade |
9188.900 |
(9045.700) |
143.200 |
|
|
d) Employees benefits expense |
11151.100 |
11576.900 |
22728.000 |
|
|
e) Finance cost |
7091.600 |
7001.400 |
14093.000 |
|
|
f) Depreciation and amortization expenses |
9124.200 |
9664.100 |
18788.300 |
|
|
g) Excise duty |
0.000 |
13585.800 |
13585.800 |
|
|
h) Other expenses |
428.144 |
53615.900 |
96430.300 |
|
|
Total Expenses |
124672.600 |
131219.900 |
255892.500 |
|
|
|
|
|
|
|
5 |
Profit/(Loss)
before exceptional item |
20031.500 |
14118.700 |
3415.200 |
|
|
|
|
|
|
|
6 |
Exceptional
items: |
|
|
|
|
|
a) Provision for diminution in value of investment/doubtful advances |
(266.500) |
0.000 |
(50.000) |
|
|
b) Provision for demands and claims |
0.000 |
(6144.100) |
0.000 |
|
|
c) Employee separation compensation |
0.000 |
(23.800) |
(592.900) |
|
|
d) Restructuring and other provisions |
0.000 |
0.000 |
0.000 |
|
|
Total
exceptional items |
(266.500) |
(6167.900) |
(6434.400) |
|
|
|
|
|
|
|
7 |
Profit/(Loss)
before tax |
19765.000 |
7950.800 |
27715.800 |
|
|
|
|
|
|
|
8 |
Tax expense |
|
|
|
|
|
a) Current tax |
4893.600 |
2195.000 |
7088.600 |
|
|
b) Deferred tax |
1930.600 |
691.300 |
2621.900 |
|
|
Total tax
expense |
6824.200 |
2886.300 |
9710.500 |
|
|
|
|
|
|
|
9 |
Net
profit/(Loss) for the period |
12940.800 |
5064.500 |
18005.300 |
|
|
|
|
|
|
|
10 |
Other
comprehensive income |
|
|
|
|
|
A i) Items will not be reclassified to profit or loss |
(755.900) |
(1147.900) |
(1903.800) |
|
|
ii) Income tax relating to items that will not be reclassified to profit or loss |
(64.100) |
(115.700) |
(179.800) |
|
|
B i) Items will be reclassified to profit or loss |
16.300 |
(42.700) |
(26.400) |
|
|
ii) Income tax on items that will be reclassified to profit or loss |
(5.700) |
14.800 |
9.100) |
|
|
Total other
comprehensive income |
(809.400) |
(1291.500) |
(2100.900) |
|
|
|
|
|
|
|
11 |
Total
comprehensive income for period |
12131.400 |
3773.000 |
15904.400 |
|
|
|
|
|
|
|
12 |
Paid-up equity
share capital |
971.41 |
971.41 |
971.41 |
|
|
|
|
|
|
|
13 |
Reserves
excluding revaluation reserves |
|
|
|
|
14 |
Earning per
equity share |
|
|
|
|
|
Basic Earnings
per share |
12.87 |
4.77 |
7.60 |
|
|
Diluted Earnings
per share |
12.87 |
4.77 |
7.60 |
STATEMENT BALANCE
SHEET AS AT 30TH SEPTEMBER 2017
|
Sr. No.: |
Particulars |
|
|
30.09.2017 |
|
|
|
|
|
|
|
|
A Assets |
|
|
|
|
1 |
Non-current
assets |
|
|
|
|
|
Plant, property and equipment |
|
|
715064.800 |
|
|
Capital work-in-progress |
|
|
55819.200 |
|
|
Intangible assets |
|
|
7747.100 |
|
|
Intangible assets under development |
|
|
493.000 |
|
|
Investments in subsidiaries, associates and joint ventures |
|
|
34465.700 |
|
|
Financial assets |
|
|
|
|
|
(i) Investments |
|
|
57815.100 |
|
|
(ii) Investments |
|
|
2111.900 |
|
|
(iii) Derivative assets |
|
|
18.400 |
|
|
(iv) Other financial assets |
|
|
181.300 |
|
|
Current tax assets (net) |
|
|
8840.500 |
|
|
Other assets |
|
|
21631.900 |
|
|
Sub-total - Non
current assets |
|
|
904188.900 |
|
|
|
|
|
|
|
2 |
Current assets |
|
|
|
|
|
Inventories |
|
|
102585.800 |
|
|
Financial assets |
|
|
|
|
|
(i) Investments |
|
|
87812.500 |
|
|
(ii) Trade receivables |
|
|
17497.100 |
|
|
(iii) Cash and cash equivalents |
|
|
3125.400 |
|
|
(iv) Other balances with banks |
|
|
1000.400 |
|
|
(v) Loans |
|
|
1086.500 |
|
|
(vi) Derivative assets |
|
|
345.000 |
|
|
(vii) Other financial assets |
|
|
452.800 |
|
|
Other assets |
|
|
25817.700 |
|
|
Sub-total - Current
assets |
|
|
243823.200 |
|
|
|
|
|
|
|
|
TOTAL - ASSETS |
|
|
1148012.100 |
|
|
|
|
|
|
|
|
B EQUITY AND
LIABILITIES |
|
|
|
|
|
|
|
|
|
|
1 |
Equity |
|
|
|
|
|
Equity share capital |
|
|
9714.100 |
|
|
Hybrid perpetual securities |
|
|
22750.000 |
|
|
Other equity |
|
|
490311.600 |
|
|
Sub-total - Total
Equity |
|
|
522775.700 |
|
|
|
|
|
|
|
2 |
Non-current
liabilities |
|
|
|
|
|
Financial liabilities |
|
|
|
|
|
(i) Borrowings |
|
|
269976.100 |
|
|
(ii) Derivative liabilities |
|
|
1136.500 |
|
|
(iii) Other financial liabilities |
|
|
195.500 |
|
|
Provisions |
|
|
10232.800 |
|
|
Retirement benefit obligations |
|
|
15164.700 |
|
|
Deferred income |
|
|
17266.400 |
|
|
Deferred tax liabilities (net) |
|
|
56385.700 |
|
|
Other liabilities |
|
|
762.700 |
|
|
Sub-total - Non
current liabilities |
|
|
371120.400 |
|
|
|
|
|
|
|
3 |
Current liabilities |
|
|
|
|
|
Financial liabilities |
|
|
|
|
|
(i) Borrowings |
|
|
37731.900 |
|
|
(ii) Trade payables |
|
|
102147.800 |
|
|
(iii) Derivative liabilities |
|
|
297.200 |
|
|
(iv) Other financial liabilities |
|
|
39871.100 |
|
|
Provisions |
|
|
16500.200 |
|
|
Retirement benefit obligations |
|
|
539.000 |
|
|
Current tax liabilities (net) |
|
|
10303.600 |
|
|
Other liabilities |
|
|
46725.200 |
|
|
Sub-total - Current
liabilities |
|
|
254116.000 |
|
|
|
|
|
|
|
|
TOTAL - EQUITY AND
LIABILITIES |
|
|
1148012.100 |
NOTES:
1. The results have been reviewed by the Audit Committee in its meeting held on October 29, 2017 and were approved by the Board of Directors in its meeting of date.
2. Post the applicability of Goods and Service Tax (GST)
with effect from July 01, 2017, revenue from operations is disclosed net of
GST. Accordingly, the revenue from operations and other expenses for the
quarter / six months ended on September 30, 2017 are not comparable with the
previous periods presented in the results.
3. Exceptional item 6(a) and 8(c) in the standalone and consolidated financial
results respectively represents provision for advances given for repurchase of
equity shares in Tata Teleservices Limited from NTT Docomo Inc.
4. On August 11, 2017, Tata Steel UK announced it had signed the documentation
for a Regulated Apportionment Arrangement (RAA) with the Trustee of the British
Steel Pension Scheme (BSPS). Subsequently, on September 11, 2017, Tata Steel UK
received confirmation from The Pensions Regulator that it had approved the RAA,
consequent to which the BSPS has now been separated from Tata Steel UK.
5. On September 19, 2017, Tata Steel Limited and thyssenkrupp AG signed a
memorandum of understanding to create a new 50:50 joint venture company called
thyssenkrupp Tata Steel. Due diligence has commenced and is currently expected
to run for several months prior to signing definitive shareholder agreements
and other binding commitments. Completion is currently expected to take place
towards the end of 2018 following anti-trust approvals.
6. The consolidated financial results have been subjected to limited review and
the standalone financial results have been audited by the statutory auditors.
7. Figures for the previous periods have been regrouped and reclassified to
conform to the classification of the current period, where necessary.
FIXED ASSETS:
Tangible Assets
· Freehold Land and Roads
· Leasehold Land
· Buildings
· Plant and Machinery
· Furniture and Fixture
· Office Equipments
· Vehicle
· Railway Sidings
PRESS RELEASES:
TATA STEEL APPOINTS I-BANKS
FOR $2 BILLION RIGHTS ISSUE TO BE LAUNCHED IN JANUARY
Dec 28 2017
Mumbai: Tata Steel Ltd has appointed a bunch of domestic investment banks to manage its proposed rights issue of about $2 billion (Rs12,800 crore), three people aware of the development said.
On 19 December, the steel maker’s board had approved the plan to raise up to INR 128000.000 million.
“Tata Steel has appointed domestic investment banks Axis Capital, ICICI Securities, Kotak Mahindra Capital and SBI Capital Markets Ltd to manage the $2 billion rights issue,” said the first of three people cited above, requesting anonymity, as he is not authorized to speak to reporters.
According to the second person cited above, the company is looking to launch the deal in the coming quarter, as early as January.
He, too, requested anonymity.
“They are moving fast on the transaction and are targeting to raise the funds in the next quarter. The deal could be launched as early as before end of January. Usually all Tata deals are underwritten by the bankers and that could be one of the reasons for the company wanting to work with these merchant bankers as they are all backed by respective group banks,” he said.
Emails sent to Axis Capital, ICICI Securities and Kotak Mahindra Capital were not answered. SBI Capital declined to comment.
“The Tata Steel Board reviews the company’s financing strategy from time to time as part of its overall growth strategy. In keeping with the strategic decisions being implemented with respect to its future growth strategy, the company also implements various long term financing plans. The company also engages with its lenders and investors to evaluate financing and refinancing transactions in line with business requirements,” Tata Steel said in an email response.
The approval to the rights issue by the board is part of the financing strategy to de-leverage and for general corporate purposes, the email added.
“For the purpose of the issue, the Board authorized the Executive Committee of the Board to decide the structure, terms and conditions of the issue including the instrument options, rights entitlement ratio, issue price, record date, timing of issue and other related matters. The company will make appropriate disclosures regarding this at an appropriate time,” it added.
As of 30 September, Tata Steel’s gross debt stood at INR 902590.000 million.
In its 19 December board meeting, the company also approved an expansion of 5 million tonnes per annum (Mtpa) for its Kalinganagar plant, which currently has a capacity of 13Mtpa.
The proposed expansion will cost the company INR 235000.000 million, which will be funded through a mix of debt and equity.
The expansion is expected to meet the requirements of automotive, general engineering and other value added segments, the company said in its stock exchange filings.
The steel maker is also planning to raise funds from the overseas debt market.
On Tuesday, Bloomberg reported that Tata Steel Ltd has sounded out banks about raising the equivalent of $5.1 billion through loan facilities and a bond issue to help refinance debt.
The Indian steel maker plans a $2.15 billion six-year syndicated facility to refinance loans in the books of units, TS Global Holdings Pte. and NatSteel Asia Pte., Bloomberg reported.
A separate €2.5 billion borrowing is planned to refinance debt remaining after the transfer of Tata Steel Europe Ltd’s existing obligations into its proposed joint venture with Germany’s Thyssenkrupp AG. The new fundraising will be backed by a letter of comfort from Tata Steel, the report said.
The last Tata group company to raise equity capital through a rights issue was Tata Motors Ltd. In 2015, the auto maker raised around INR 90000.000 million through a rights issue which was subscribed 1.21 times.
TATA STEEL SELLS
STAKE IN TATA MOTORS TO TATA SONS FOR $586.3 MILLION
Jun 23,
2017
Tata Steel Limited BSE 0.93 % said on Friday it sold its stake in Tata Motors LtdBSE-0.43 % to Tata Sons, the holding company of India's salt-to-software Tata conglomerate, for 37.83 billion rupees ($586.3 million).
Tata Steel sold about 83.54 million shares at 452.80 rupees apiece, it said in
a stock exchange filing.
As of End-March, the steelmaker owned a 2.9 percent stake or about 83.64
million shares in Tata Motors, according to stock exchange data. Last week,
Tata Steel said it would sell the stake to Tata Sons on or after June 23.
Indian media had reported that Tata Sons planned to reduce crossholdings among
group companies.
GST GIVES RELIEF TO
TATA STEEL UNDER ODISHA AGREEMENT
As per the recent findings, Tata Steel is now capable of selling Kalinganagar products across India under GST Regime. GST is going to roll out from 1st July 2017, and the year is good for Tata Steel also as it will bring more liberal operations in its company. Along with the introduction of new indirect taxation structure, TATA steel can now sell their finished products from its Kalinganagar steel plant in Odisha outside the state across the nation.
Tata Steel signed the Memorandum of Understanding (MoU) agreement with the Odisha Government in November 2004 and was bound to sell products only in Odisha. Due to this restrictive agreement, TATA Steel was not allowed to export finished products to the country (outside Odisha).
The Kalinganagar steel plant of Tata commenced its operation in May 2016. Products such as Tata Ferroshots and HR (hot rolled) coils are brought forth under the Kalinganagar unit and exported primarily to South East Asian countries.
Though Odisha has a nameplate capacity of 21 million ton (mt) annually in steel making in which hardly 2.6 mt is consumed within the state. The consumption of finished steel points to the lack of downstream industries despite the presence of steel majors like Tata Steel, Jindal Steel & Power Ltd (JSPL), Jindal Stainless Ltd (JSL) and Bhushan Steel.
A Tata Steel source said, “Now, we see no hurdle to selling products from out Kalinganagar facility with the announcement of the introduction of GST from July 1. The GST rollout will ensure us a seamless transportation of our products. Though we were shipping the products overseas, we preferred to sell more in the domestic market to ensure better margins.”
According to Senior Official of Odisha Government said, “After GST, Tata Steel to sell its products within the state. We would not oppose their sales.” Since from the commencement date, Kalinganagar unit of Tata Steel has approximately crossed 2.23 ton and 1.61 million ton of hot metal production and HR coils respectively.
Apart from Hot Rolled coils, Kalinganagar unit of Tata Steel has also manufactured Tata Ferro-shots. It is granulated with pig iron and solidified by cooling in water. TATA steel products are made with the induction furnaces, cupolas, basic oxygen furnaces, electric arc furnaces, cupolas and foundries as a replacement of pig iron, scrap or DRI. Tata Ferro-shot product has been recognized or accepted in both markets international as well as domestic. The product has demanded in South East and Middle- East Asia, Far- East, Europe, and the US.
TATA STEEL, THYSSENKRUPP LOOKING AT REDUCING PORT TALBOT'S CAPACITY
Tata Steel and Thyssenkrupp are looking at
reducing the size of Britain's largest steel plant in Port Talbot, Wales,
industry sources said, as the two firms press ahead with plans to merge their
European steel operations and deal with the overcapacity afflicting the
industry.
The move could see one of Port Talbot's two
blast furnaces shut, halving the plant's capacity. Up to 4,000 people are
employed at the site.
An industry source close to Thyssenkrupp's
board said the German group expected the struggling plant to be downsized in
the event of a merger, without specifying by how much.
Two senior officials from the Community
labour union said in a message emailed to union members last week and seen by
Reuters, that Tata has only pledged to keep the two blast furnaces at Port
Talbot running for three years, at which point one of them is due to close in
the absence of further investment.
"Three years is nowhere near enough. Our
line in the sand has always been keeping two blast furnaces running (long
term). We want guarantees and besides, they've given us guarantees before that
haven't materialised," said a union source.
Indian-owned Tata Steel, which employs 11,000
people in Britain, said it could not comment on speculation over its merger
plans, while Thyssenkrupp declined to comment.
"The most important thing for us is that
by a consolidation and by the underlying plan we can address the issues of
overcapacity," Thyssenkrupp's chief financial officer Guido Kerkhoff said
last week, in reference to the merger.
The fate of the Port Talbot plant has been up
in the air since Tata Steel said in March it planned to sell all of its
loss-making British assets. In July, however, it announced it was in talks with
ThyssenKrupp about creating a joint venture for its European operations.
Port Talbot was losing 1 million pounds a day
in the financial year which ended in March but has been making an operating
profit since then, thanks to a weaker pound, higher steel prices and cost
cutting. Separately, the union chiefs said in their email that Tata Steel
planned to start formal talks "within weeks" about closing its costly
defined benefit UK pension scheme to future accruals.
The Thyssenkrupp merger plan hinges on Tata
striking a deal with the British government to separate itself from the
deficit-laden pension scheme.
Union leaders said in the email that they
would ballot for industrial action if Tata unilaterally triggered a 60-day
consultation on closing the scheme without their agreement on outstanding
matters.
The union is seeking assurances on the
long-term future of Port Talbot and is opposed to the pension scheme being spun
off due to concerns that it would be taken over by the Pension Protection Fund
(PPF), which would cut current employees' pension benefits.
Tata and the UK government are looking at the
PPF option, and pensions experts say closing the scheme to future accruals is a
necessary first step to achieving that end and plugging the scheme's deficit.
Tata's British Steel Pension Scheme is one of
Britain's largest defined benefit schemes with over 130,000 members.
Its deficit was estimated at 50 million
pounds last October, though it stood at 700 million pounds earlier this year
and could easily balloon again, depending on market conditions.
Thyssenkrupp, which has long been seeking to
reverse the decline in its own steel business, has insisted it is not prepared
to take on Tata's pension liabilities.
Tata announced on Monday that it was
investing 85 million pounds in its UK business this year but the plan did not
include any investment in Port Talbot, other than funds for an environmental
scheme for its power plants.
Union leaders said Tata Steel was planning to
invest 100 million pounds in the UK going forward, but only if the business,
which has consistenly posted losses since the financial crisis, makes 200
million pounds worth of profits.
A pensions expert said any promise of
investment from Tata Steel could be used as a negotiating tool to encourage the
government to shift the pensions scheme into the PPF.
Tata's view would be "they will invest -
the do your part of the bargain," said Richard Farr, managing director at
Lincoln Pensions.
"There has to be some sort of compromise
over the deficit. They are doing their bit, now its the government's
turn."
Tata's parent, Tata Sons, is embroiled in a
bitter boardroom battle putting it under even more pressure to stem the
billions of dollars of losses it has made since entering the EU steel sector in
2007, a year before the financial crisis.
TATA STEEL'S UK REVAMP STILL ON TRACK
Nov 29 2016
When elephants fight, it is the grass that gets trampled goes a saying.
The tussle to retain management control over Tata group’s listed companies has
seen investors getting hurt. The chart alongside shows that Tata Steel Ltd
underperformed the BSE Metal index since 24 October, when the dispute between
Cyrus P. Mistry and the Tata group came out in the open. While the publicity
has been adverse, doubts arose about whether listed companies may shift course
in their strategy.
Tata Steel’s announcement of successfully
finding a buyer, the Liberty House Group, for its speciality steels business
should put those fears to rest, for now. Monday also saw S&P Global Ratings
issue a statement that the Tata group companies are professionally managed, and
while decision-making may get delayed, the companies will deliver on their
business and financial plans.
The sale announcement by Tata Steel lends
some credibility to their belief. News reports had indicated that this sale may
be put on hold. This was despite the speciality steel assets in the UK, along
with the Hartlepool steel pipes facility, being clearly demarcated as for-sale
assets. A reversal could mean going back to business as usual in Europe.
Putting the sale on hold would have been a blow to investor confidence.
The September quarter results, for instance,
showed an improvement in profitability, which Tata Steel partially attributed
to the exit from the long products business, effective 31 May. The full impact
was thus visible in the September quarter. Now, output declined as a result by
9% sequentially, but Ebitda per tonne rose by 33%. Ebitda is short for earnings
before interest, taxes, depreciation and amortization.
The improvement was not only due to the sale
but also other factors such as better spreads and favourable currency
movements. The company’s Netherlands facility continues to deliver good results
and its focus is to invest more over there.
The UK speciality steel unit employs 1,700
people, of the 11,000 people employed in Tata Steel UK. The enterprise value of
the business is £100 million, although details of its turnover or output are
not available. However, it is a value-added products business supplying to
high-end applications in industries such as aerospace, automotive, and oil and
gas. Being a value-added business, its disposal may not be as beneficial to
profitability, as the long products’ sale was.
The improvement in the steel industry’s
prospects too means its contribution would have improved. Some clarity on this
should become visible in the March quarter results, by when the full impact of
the sale should be visible. Physical sales are likely to decline but what
investors will be watching for is the impact on profitability. Tata Steel’s
ability to compensate by higher sale of value-added products from its other
facilities could make up for lower sales or profits.
Next in line should be news about the sale of
the company’s pipe-making facilities in Hartlepool. That will complete sale of
its assets put up for disposal. Once that is done, what remains will largely be
its strip products business, where discussions are on for a possible joint
venture with ThyssenKrupp AG. Whether this will happen and how long before it
is announced is uncertain, but investors can take heart from the fact that its
Europe strategy is still on track. That could help narrow the gap between Tata
Steel’s share and that of its peers.
TATA STEEL
SAYS STILL IN EUROPEAN MERGER TALKS WITH THYSSENKRUPP
Tue, Mar 07 2017
The statement comes after news reports said the Tata Steel - Thyssenkrupp merger deal could be called off due to German pension liabilities.
Tata Steel and
Thyssenkrupp AG, have maintained that the merger talks for the former’s UK
assets would not necessarily lead to a transaction.
Mumbai: Tata Steel Ltd said on Monday that it remains in “constructive discussions” with Germany’s Thyssenkrupp AG for a potential merger of the two companies’ steel businesses in Europe.
There can, however, be no
assurance that the discussions will result in a transaction, Tata Steel said in
a BSE filing on Monday. The statement comes a day after The Sunday Times of the
UK reported that Tata Steel could break off the merger talks.
The paper reported that the deal,
which has been slow to progress, could be called off due to German pension
liabilities.
Thyssenkrupp did not respond to an
email query sent on Monday morning.
Tata Steel had, a year ago,
decided to put its entire UK business on sale in the face of a slump in steel
demand and prices, but the plan hit a roadblock due to uncertainty stemming
from Britain’s decision to exit the European Union (EU).
The group eventually halted the
sale process in July in favour of discussions for a joint venture with
“strategic players in the steel industry, including Thyssenkrupp AG”.
The talks, however, have not yet
led to a transaction.
Both companies have maintained
that the discussions would not necessarily lead to a transaction.
For Tata Steel, the deal with
Thyssenkrupp has been hanging fire for over a year as there were complications
in negotiations over its huge pension deficit in the UK. The situation improved
in December, when Tata Steel UK made some progress with its trade unions to
replace its defined benefit pension scheme, British Steel Pension Scheme (BSPS),
with a defined contribution plan.
Tata Steel’s European operations
have been consistently losing money, prompting the firm to shutter some plants
in Europe over the past two years.
Tata Sons Ltd’s ousted chairman
Cyrus Mistry had warned that Tata Steel’s European steel business faced potential writedowns of more
than $10 billion, only some of which have been booked, according to
a 25 October email he sent to the board of the holding company. Tata Steel has
denied this.
Last month, Tata Steel agreed to sell its UK specialty steels business to Liberty
House Group for £100 million (INR 8380.000 Million). The company
also said that thousands of workers at Tata Steel’s sites in the UK had
accepted its offer to move from a “final salary pension” to a less generous
scheme, potentially saving their jobs and assuring the future of its plants.
TATA STEEL RISES 4% ON BUZZ OF UK BIZ MERGER COMPLETITION
BY MAY
Mar 16, 2017
Tata Group firm said to be in talks
with Thyssenkrupp and the deal has reached price negotiation phase. Due
diligence between the companies have been completed.
Moneycontrol News
Tata Steel
added over 4 percent intraday on reports of the firm finalising a decision on
UK business’ merger by May.
Sources have told CNBC-TV18 that Tata Steel and Thyssenkrupp’s talks are in
final stages of price negotiation. The operational due diligence between the
firms have been completed.
The merger of UK business is set to include Tata Steel’s largest plant in Port
Talbot. A crucial point for the deal to go through is the closure of pension
scheme.
The stock has risen over 8 percent in the past one month, while its three-day
gain stands at 6.49 percent. At 14:57 hrs, the stock was quoting at INR 498.15,
up INR 19.60, or 4.10 percent on the BSE. It touched an intraday high of INR
498.95 and an intraday low of INR 481.75.
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts, India Prisons Service,
Interpol, etc.
1] INFORMATION ON
DESIGNATED PARTY
No exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No 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
|
INR |
|
US Dollar |
1 |
INR 63.93 |
|
|
1 |
INR 86.07 |
|
Euro |
1 |
INR 76.39 |
INFORMATION DETAILS
|
Analysis Done by
: |
PRY |
|
|
|
|
Report Prepared
by : |
ARC |
SCORE FACTORS
|
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 |
RATING EXPLANATIONS
|
Credit Rating |
Explanation |
Rating Comments |
|
A++ |
Minimum Risk |
Business dealings permissible with minimum
risk of default |
|
A+ |
Low Risk |
Business dealings permissible with low
risk of default |
|
A |
Acceptable Risk |
Business dealings permissible with
moderate risk of default |
|
B |
Medium Risk |
Business dealings permissible on a regular
monitoring basis |
|
C |
Medium High Risk |
Business dealings permissible preferably
on secured basis |
|
D |
High Risk |
Business dealing not recommended or on
secured terms only |
|
NB |
New Business |
No recommendation can be done due to
business in infancy stage |
|
NT |
No Trace |
No recommendation can be done as the
business is not traceable |
NB is stated where there is insufficient information to facilitate rating. However, it is not to be considered as unfavourable.
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 are as follows:
·
Financial
condition covering various ratios
·
Company
background and operations size
·
Promoters
/ Management background
·
Payment
record
·
Litigation
against the subject
·
Industry
scenario / competitor analysis
·
Supplier
/ Customer / Banker review (wherever available)
This report is issued at
your request without any risk and responsibility on the part of MIRA INFORM
PRIVATE LIMITED (MIPL) or its officials.