Copy (2) of Bhushan Power

8/9/2019 Copy (2) of Bhushan Power

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NAME VINEET SACHDEVAENROLLMENT NO-03220803909 Page 1

Bhushan power & steel ltd.

The companyBhushan Power & Steel Limited, a fully integrated 1.5 Million TPA Steelmaking Company with turnover of INR3873 Crores (USD 950 Million) and 7 World Class ISO9000 Certified State of the Art Plants at Chandigarh, Derabassi, Kolkata and Orissa in India.

A leading manufacturer of flat, rounds and long products including value added products withtotal steel value chain right from Coal Mining, Billets, HR Coils, Pig Iron, CR Coils, GP/GC,

Precision Tubes, Black Pipe/GI Pipe, Cable Tapes, Tor Steel, Wire Rod and Special Alloy Steel.

Successfully commissioned 1.5 Million TPA Greenfield Steel and Power Plant in Orissa withHR

Coilmaking facilityFirst in Private Sector in the State of Orissa. For the Orissa plant, technology and equipments

are procured from world-renowned companies like Lurgi from Germany, ABB Ltd., SMSDemag, Siemens etc. Bhushan is selling its Value added range of products in Secondary Steel

through a large distribution network in India (comprising more than 35 sales offices) andAbroad.

A rock-solid foundation combined with continuous upgradation and innovation has ensured thatwe have constantly surpassed our goals. Our end-to-end portfolio offers a wide spectrum of

products with consistently superior quality. In addition to our export thrust, we supply to fast-growing sectors like automotive, white goods, construction, furniture, fasteners,

telecommunication, etc.

Bhushan Steel Ltd formerly known as Bhushan Steel & Strips Ltd. is a globally renowned one ofthe leading prominent player in Steel Industry. Backed by more than two decades, of experience

in Steel making, Bhushan Steel is now Indias 3rd largest Secondary Steel Producer company

with an existing steel production capacity of 2 million tones per annums (approx.).

It was the vision of the founder; Brij Bhushan Singal, that the first stake was driven into the soilof Sahibabad (Uttar Pradesh) in 1987. His vision helped BSL overcome several periods of

adversity and strive to improve against all odds.

The company has three manufacturing units in the state of Uttar Pradesh (Sahibabad Unit),

Maharashtra (Khopoli unit), and Orissa Plant (Meramandali unit) in India and sales network is

across many countries.

The company is a source for vivid variety of products such as Cold Rolled Closed Annealed,

Galvanized Coil and Sheet, High Tensile Steel Strapping, Colour Coated Coils , Galume Sheetsand Coils, Hardened & Tempered Steel Strips , Billets, Sponge Iron, Precision Tubes and Wire

Rod.


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As one of the prime movers of the technological revolutions in Indian Cold Rolled SteelIndustry, BSL has emerged as the countrys largest and the only Cold Rolled Steel Plant with an

independent line for manufacturing Cold Rolled Coil and Sheet up to a width of 1700mm, aswell as Galvanized Coil and Sheet up to a width of 1350 mm.

In due course of time, BSL has grown incredibly its turnover and production capacity bysuccessive expansions as well as improved realizations with these manufacturing units.

The dynamic reason of awesome and unparallel growth of BSL, is rapid integration on the Steelvalue chain; conceivably, it would be its unwavering focus on acquiring the latest technology

and know how, also the BSLs commitment to provide its customers with the best qualityproducts.

Given a vibrant Steel industry dynamics in India, we are on a course to become a fully Integrated

Steel & Power Company with market leading offerings in value added Steel in Automotive andWhite Good Segment with the quality been approved by ISO 9002 and QS 9000.

Vision & mission

The vision of evolving into a totally Integrated Steel Producer by committing to achieve the

highest standards of Quality through Cutting-Edge Technology.

The key to Vision is to use rigorous conceptual framework and to understand how thatframework connects to the underlying DNA of enduring great companies.

A well-conceived vision consists of two major componentsCORE IDEOLOGY and an

ENVISIONED FUTURE. A good vision builds on the interplay between these twocomplementary Yin-and-Yang forces; it defines What we stand for and Why we exist that does

not change the Core Ideology and sets forth What we aspire to become, to achieve, to createthat will require significant change and progress to attain the Envisioned Future.

Our Vision


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About Culture: -To make it a place where all the people can thrive living, learning andworking in a clean, safe and healthy environment.

About Values:-To corporate values as the rules or guidelines by which a corporation exhorts its

members to behave consistently with its order, security and growth.

About People: - See the good in people and try to develop those qualities i.e. preparation andgrooming of the next generation of the young thinkers.

About Customers: - Sell good merchandise at reasonable price; treat our customer like wewould treat our friends and the business will take care of itself. Bhushan Steels endeavor is to

attain the highest level of Customer Satisfaction.

About Products: - We should always be the pioneers with our products out front leading themarket.

It is true to say that most of our vision statements express an element of ambition.BSLs visionof total integration is a lot closer to realization today. Through seamless backward integration,BSL is consolidating its position on the entire steel value chain from iron ore to specialized is

surging ahead.

Our mission is to grow our company by providing innovative strong and high

performance products and solutions to meet our global customer needs.

MANAGEMENT OF THE COMPANY

Mr. Brij Bhushan Singal

FOUNDER& CEO

Sh. Sanjay Singal

Chairman & Managing Director

Sh.V.R.Sharma

Joint Managing Director

MsRadhikaSingal

Whole Time Director (Admin)Sh.R.P.Goyal

Whole Time Director (Commercial)

Sh.H.C.Verma

Whole Time Director (Marketing)


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Sh.R.N.Yadav

Whole Time Director (Technical)

Sh. R.D. Batra

Director

Sh. Dinesh Kumar Behal

Director

Sh. Jimmy Mahtani

Director

Sh. Anil S. Supanekar

Director

Sh. Aloke Sengupta

Nominee Director of IDBI

History

1970 - Started with very small initial outlay for manufacturing Door Hinges & later on, Rail

Track Fasteners.

1973 - Manufacturing facilities set up for Tor Steel and Wire Rod in Chandigarh.

1981 - Rolling Mill Project commissioned at Chandigarh for Round and Narrow Strips.

1985 - Backward Integration Project for Steel Melting facilities.

1986 - Upgrading of Mini Steel Plant with continuous casting and ladle furnace facilities. 1997 -

Commissioning of Narrow Width Cold Rolling Project at Chandigarh.

1998 - Commissioning of Precision Pipe Project at Chandigarh.

2001 - Commissioning of Cold Rolling & Galvanizing Complex at Kolkata.

2002 - Addition of narrow width Cold Rolling facilities at Kolkata.

2003 - Expansion of wide width Cold Rolling facilities, ERW Water Pipes & Tubes down stream

facilities at Kolkata.

2004 - Further expansion of Cold Rolling facilities at Kolkata.

2005 - Commissioning of Orissa Project consisting of 4 DRI Kilns, Steel Making Facilities, Coal

Washery and 100 MW Power Plant.2007 - Commissioning of further expansion of Orissa Project consisting of HR Coil Mill, Steelmaking, Blast Furnance, Sinter plant, Coke oven plant, Oxygen plant and Lime & Calcining

Plant.

2008 - Implementation of further expansion in Orissa Project in progress. Consisting of DRIKilns, Coal Washery, Coal Mining, Power Plant & Steel Making facilities.


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Products of the company

Bhushan Power & Steel Ltd., produces a number of steel products for domestic users, Industrial

concerns etc. for infrastructure development at its manufacturing bases at Chandigarh, Derabassi(Punjab), Kolkata and Orissa.

ALL OUR PRODUCTS CONFORM TO INDIAN AND INTERNATIONAL

SPECIFICATION.

HR COIL STEEL BILLETS ALLOY STEELROUNDS

TOR STEEL

WIRE RODS PIG IRON SPONGE IRON POWER

CR COILS NARROW CR COILS CR SHEETS PRECISION TUBES(ERW and CEW)

CABLE TAPES BLACK PIPE GI PIPES GP COILS / SHEETS


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Capital structure of the company

From

Year

To

Year

Class Of

Share

Authorized

Capital

Issued

Capital

Paid Up Shares

(Nos)

Paid Up

Face Value

Paid Up

Capital2008 2009 Equity

Share80.00 43.29 42471662 10 42.47

2007 2008 EquityShare

80.00 43.29 42471662 10 42.47


80.00 43.29 42471662 10 42.47


80.00 42.09 41271662 10 41.27


80.00 41.29 40471662 10 40.47


80.00 41.29 40471662 10 40.47

2002 2003 Equity

Share

80.00 41.29 40471662 10 40.47


50.00 33.04 33039600 10 33.04


50.00 33.04 33039600 10 33.04


50.00 33.04 33039600 10 33.04

1997 1998 Equity

Share

50.00 33.04 33039600 10 33.04


50.00 33.04 31954920 10 31.95


50.00 261.45 26144800 10 26.14


50.00 11.00 11000000 10 11.00


15.00 11.00 11000000 10 11.00


15.00 8.36 8356400 10 8.36


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Share holding

Share holding

pattern as on : 31/03/2010 31/12/2009 30/09/2009Face value 10.00 10.00 10.00

No. Of

Shares%

HoldingNo. Of

Shares%

HoldingNo. Of

Shares%

Holding

Promoter's holding

Indian Promoters 29371099 69.15 29371099 69.15 29371099 69.15

Sub total 29371099 69.15 29371099 69.15 29371099 69.15

Non promoter's holding

Institutionalinvestors

Banks Fin. Inst. and

Insurance347467 0.82 513449 1.21 513449 1.21

FII's 882318 2.08 840174 1.98 983783 2.32

Sub total 1441183 3.39 1491654 3.51 1498132 3.53

Other investors

Private Corporate

Bodies10033184 23.62 9992736 23.53 9935021 23.39

NRI's/OCB's/Foreign

Others33369 0.08 35663 0.08 49431 0.12

Others 98965 0.23 82207 0.19 141257 0.33

Sub total 10165518 23.93 10110606 23.81 10125709 23.84

General public 1493862 3.52 1498303 3.53 1476722 3.48Grand total 42471662 100.00 42471662 100.00 42471662 100.00

Ownership Pattern


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Performance of thecompany

The above graph shows that there is always cumulative growth of 20 %.so we can say that

CAGRof sales is 20%

There is growth in both operating income & net profit which is a good indication.

0

500

1000

1500

2000

2500

3000

3500

4000

4500

5000

mar'04 mar'05 mar'06 mar'07 mar'08 mar'09

Gross Sales

Gross Sales

0

1000

2000

3000

4000

5000

6000

Mar ' 05 Mar ' 06 Mar '

07

Mar ' 08 Mar ' 09

net profit

operating income


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Profit loss account

Mar '

09Mar '

08Mar '

07Mar '

06Mar '

05

Income

Operating income 4,985.72 4,180.23 3,829.60 2,793.99 2,674.99

Expenses

Material consumed 3,475.23 3,035.76 2,909.65 2,187.63 2,082.85

Manufacturing expenses 217.02 209.10 154.32 130.45 113.05

Personnel expenses 100.86 73.87 51.01 36.43 23.61

Selling expenses 140.12 86.10 102.22 59.94 48.27

Adminstrative expenses 99.25 44.30 37.76 24.35 17.74

Expenses capitalized -140.13 -104.26 -53.46 -41.03 -15.85

Cost of sales 3,892.35 3,344.88 3,201.50 2,397.77 2,269.68

Operating profit 1,093.37 835.35 628.10 396.21 405.31

Other recurring income 17.22 16.76 18.01 12.17 6.57

Adjusted PBDIT 1,110.59 852.11 646.12 408.38 411.89

Financial expenses 117.27 107.80 85.82 75.38 79.39

Depreciation 234.41 211.41 208.92 165.76 164.72

Other write offs - - - - -Adjusted PBT 758.92 532.89 351.38 167.24 167.78

Tax charges 139.48 115.20 59.11 5.21 12.30

Adjusted PAT 619.44 417.69 292.27 162.04 155.48

Non recurring items -198.13 6.04 20.99 -7.58 -2.12

Other non cash adjustments - - - -0.11 -

Reported net profit 421.30 423.73 313.26 154.34 153.35

Earnigs before

appropriation

605.35 441.22 349.30 194.27 279.12

Equity dividend 10.62 10.62 10.62 10.32 10.12

Preference dividend - - - - -

Dividend tax 1.80 1.80 1.80 1.45 1.32

Retained earnings 592.93 428.80 336.88 182.50 267.68


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Balance sheet(Rs in crores)

Mar ' 09 Mar '

08

Mar '

07

Mar '

06

Mar '

05

Sources of funds

Owner's fund

Equity share capital 42.47 42.47 42.47 41.27 40.47

Share application money 400.44 - - 3.60 -

Preference share capital - - - - -Reserves & surplus 1,985.59 1,582.85 1,172.03 848.40 690.12

Loan funds

Secured loans 5,136.32 3,333.11 2,412.84 1,650.91 1,089.79

Unsecured loans 2,929.93 2,385.02 829.14 385.27 227.68

Total 10,494.75 7,343.46 4,456.48 2,929.45 2,048.06

Uses of funds

Fixed assets

Gross block 3,281.86 2,927.09 2,693.73 1,795.91 1,657.81

Less : revaluation reserve - - - - -

Less : accumulated depreciation 1,395.89 1,168.07 970.27 775.83 610.81Net block 1,885.97 1,759.02 1,723.46 1,020.08 1,047.01

Capital work-in-progress 7,400.13 4,567.97 1,892.11 1,295.22 385.70

Investments 107.73 58.46 20.85 19.17 18.99

Net current assets

Current assets, loans & advances 2,746.40 2,420.14 1,763.88 1,202.51 1,069.44

Less : current liabilities & provisions 1,645.48 1,462.14 943.82 607.53 473.07

Total net current assets 1,100.92 958.01 820.06 594.98 596.36

Miscellaneous expenses not written - - - - -

Total 10,494.75 7,343.46 4,456.48 2,929.45 2,048.06

Notes:

Book value of unquoted investments 58.98 52.71 18.81 18.81 18.81

Market value ofquoted investments 0.56 1.25 1.94 0.39 0.19

Contingent liabilities 2,424.34 2,545.91 1,551.57 1,931.44 930.37

Number of equity sharesoutstanding

(Lacs)

424.72 424.72 424.72 412.72 404.72


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Key Financial Indicators

Key ratios

2004 2005 2006 2007 2008

EBIDTA to Net Sales 14.09 13.30 15.92 17.08 20.93

Debt Equity Ratio 0.99 1.56 2.08 1.91 2.21

Total Debt to Equity 1.23 1.78 2.82 2.81 2.71

TOL/TNW 1.84 2.51 3.51 3.28 3.05

Current Ratio 1.41 1.34 1.36 1.36 1.34

FACR 1.74 1.54 1.46 1.69 1.62

DSCR 1.78 1.69 1.79 1.58 1.68

Interest Coverage Ratio 3.52 3.98 4.79 4.38 4.20

0

20

40

60

80

100

120

140

160

2004 2005 2006 2007 2008

EPS (Rs.)

Book Value (Rs.)


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Performance of dividend

Date Purpose

21/09/2009 Dividend - Rs. 2.50

19/09/2008 Dividend - Rs. 2.50

13/09/2007 Dividend - Rs. 2.50

18/09/2006 Dividend - Rs. 2.50

12/09/2005 Final Dividend - Rs. 1.50

The above graph shows that the is using fixed dividend method because the company is

giving only Rs 2.5 per share as dividend from last 4 years. Company is the remaing profits

as retained earnings for growth & loan payments.

0

0.5

1

1.5

2

2.5

3

12/9/2005 18/09/2006 13/09/2007 19/09/2008 21/09/2009

Dividend

Dividend


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Index Comparison

Share performance

1-4-2009 -31-3-2010

Highest price -1804Lowest price -407 .


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Copy (2) of Bhushan Power