Department of Disinvestment, Ministry of Finance, Govt. of India

30 October 2014 6:26:03 PM

PRELIMINARY INFORMATION MEMORANDUM (‘PIM’)

BURN STANDARD COMPANY LTD.(BSCL) 

 

 

MINISTRY OF DISINVESTMENT  

 

 

TABLE OF CONTENTS

DISCLAIMER

SUBMISSION OF EXPRESSION OF INTEREST

BRIEF PROFILE OF BSCL

ANNEXURES

Abbreviations

BBUNL

Bharat Bhari Udyog Nigam Ltd.

BBVL

Bharat Brakes & Valves Ltd.

BIFR

Board of Industrial & Financial Reconstruction

BSCL

Burn Standard Co. Ltd

BW

Burnpur Works

CA

Confidentiality Agreement

CAPEXCIL

Chemical & Allied Products Export Promotion Council

CEO

Chief Executive Officer

CED

Central Excise Duty

CIM

Confidential Information Memorandum

CPD

Central Project Division

EoI

Expression of Interest

FWU

Four Wheeler Unit

GOI

Government of India

HW

Howrah Works

LRU

Loss-making Refractory Units

NALCO

National Aluminium Company Ltd.

NTPC

National Thermal Power Corporation

OCB

Overseas Corporate Bodies

ONGC

Oil and Natural Gas Corporation

OSD

Offshore Division

PIM

Preliminary Information Memorandum

PSE

Public Sector Enterprise

PSU

Public Sector Undertaking

QIP

Qualified Interested Party

RBL

Reyroll Burn Ltd.

RFQ

Request for Qualification

RSEB

Rajasthan State Electricity Board

SAIL

Steel Authority of India Ltd.

SEBI

Securities & Exchange Board of India

SW

Salem Works

UTIBL

UTI Bank Ltd.

VRS

Voluntary Retirement Scheme

WB

West Bengal


DISCLAIMER

 

1.      UTI Bank Limited (“UTIBL” or the Advisor) in association with Deloitte Touche & Tohmatsu India Pvt. Ltd., have been retained as Advisor by Bharat Bhari Udyog Nigam Limited (BBUNL) for locating a Strategic Joint Venture Partner for its 100% subsidiary, Burn Standard Company Limited (“BSCL” or “the Company”) by disinvestment of 60% of the stake of BBUNL.

 

2.      The sole purpose of this Preliminary Information Memorandum (PIM) is to assist the party interested in being the ‘Strategic Joint Venture Partner’ to participate in the disinvestment process. 

 

3.      This PIM does not constitute an offer or invitation or solicitation of an offer, to subscribe to or purchase BBUNL’s stake in BSCL.

 

4.      This document is not intended to form the basis of any investment decision and accordingly, interested parties are advised to carry out their own due diligence, investigations and analysis of any information contained or referred to herein or made available at any stage in the disinvestment process and satisfy about the authenticity of the same. This PIM has been delivered to interested parties for information purposes only and upon the express understanding that such parties will use it only for the purpose set forth above.

 

5.      While this document has been prepared in good faith, no representation or warranty, express or implied, is or will be made, and no responsibility or liability will be accepted by BSCL, BBUNL, Advisor and its associate, or the Government of India (GOI) or any of their employees, advisors or agents as to or in relation to the accuracy or completeness of this document or any other oral or written information made available to any interested recipient or its advisors at any time during the disinvestment process and any liability thereof is hereby expressly disclaimed.  This PIM may contain / include certain estimates, projections, statements, targets and forecasts with respect to the Company. These are based on the various assumptions made by the management, employees of the Company and BBUNL and/or Advisor or its associate, which, as well as the information on which they are based may or may not be accurate. The opinions in this memorandum have been expressed in good faith. Neither of the Company, BBUNL or Advisor or its associate, management or employees of the Company, make any representations and / or warranty in respect of, and no reliance should be placed on any estimates, projections, statements, targets and forecasts or the assumptions on which they may be based. Any liability of whatsoever in nature, is accordingly expressly declined even if any loss or damage is caused by any act or omission on part of the aforesaid information or data, whether negligent or otherwise.

 

6.      Neither this document nor anything contained herein shall form a basis of any contract or commitment whatsoever. Any prospective purchaser will be required to acknowledge in the purchase contract that he has not relied on or been induced to enter such agreements by any representation or warranty, save as expressly set out in such an agreement.


 

7.      Any information contained in this document, will be superceded by any later written information on the same subject made available to the recipient by or on behalf of BSCL, BBUNL or the Advisor. BSCL, BBUNL and Advisor undertake no obligation to provide the recipient with any additional information or update this document and reserve the right, at any time and without notice, to change or modify the procedure or process for disinvestment, terminate the due diligence or negotiations or any part of or the entire disinvestment process prior to signing of any binding share purchase agreement.

 

8.      This document has not been filed, registered or approved in any jurisdiction. Recipients of this document, particularly in jurisdiction outside India, should inform themselves of and observe any applicable legal requirements.


 

PART I

 

SUBMISSION OF EXPRESSION OF INTEREST

 

1.         INTRODUCTION

 

1.1              Burn Standard Company Limited (“BSCL” or “the Company”) which is a 100% subsidiary of Bharat Bhari Udyog Nigam Ltd.(BBUNL) is a Government Company under the administrative jurisdiction of the Department of Heavy Industries, Ministry of Heavy Industries and Public Enterprises, Government of India. The Company is located at Kolkata in the State of West Bengal (about 15 kms from the Netaji Subhas Chandra Bose Airport).

 

1.2              The Company went into commercial production about two centuries ago. Two of its main engineering units are located at Howrah and at Burnpur in Burdwan district of West Bengal. The Refractory units are located in West Bengal, Bihar, Madhya Pradesh and Tamil Nadu. Besides, BSCL has an Off-shore Platform Fabrication yard at Jellingham in the Midnapore district of West Bengal.

 

1.3              BSCL was incorporated in 1976 as a PSU. Management of the erstwhile two private companies viz. Burn & Company Ltd. and The Indian Standard Wagon Company Ltd. was taken over by the Govt. of India on and from 19.12.1973 followed by nationalisation thereof effective from 01.04.1975. With effect from September, 1986, BSCL became a wholly owned subsidiary of BBUNL.

 

1.4              As a part of its disinvestment programme, BBUNL intends to disinvest 60% equity in BSCL to a Strategic Partner along with transfer of management control.

 

1.5              UTI Bank Limited in association with Deloitte Touche and Tohmatsu India Pvt. Ltd., have been retained as Advisors to BBUNL for the proposed disinvestment process and matters relating thereto.

 

2.         ADVERTISEMENT INVITING EOI

 

2.1              An advertisement has been issued in Business Standard, The Economic Times, The Financial Express (all editions), Ananda Bazar Patrika, Navbharat, Prabhat Khobor, and Daily Thanthi on 26th March, 2003 inviting interested parties to submit their ‘Expression of Interest’ (EoI) to participate in the disinvestment process, a copy of which is enclosed as Annexure I .

 

3.         EXPRESSION OF INTEREST

 

3.1              This section describes the outlines of participation in the disinvestment process and the requirements relating to information to be provided by interested parties, when submitting their Expression of Interest (EoI).


 

4.         ELIGIBILITY / PRE QUALIFICATION CRITERIA

 

4.1              The interested party(ies) must have ;

 

(i)                  Networth  of Rs.100 million and above;

(ii)                Annual turnover of Rs.1000.00 million and above;

 

as per audited accounts of 31st March, 2002 or any other subsequent annual closure of accounts date, as applicable.

 

4.2              For a consortium bid, all members of the consortium should meet the above mentioned eligibility criteria 4.1(i) and the latest combined audited turnover of the constituent entities of the consortium of Companies  should meet the above mentioned eligibility criteria 4.1(ii), out of which the leader of the consortium should have atleast 51% turnover.

 

4.3              Where the financial statement is expressed in currency other than Indian Rupee, the eligible amount as described above shall be computed by taking the equivalent US dollars at the exchange rates (as stipulated by Foreign Exchange Dealers Association of India) prevailing on the date(s) of such financial statement.

 

4.4              Government is considering formulation of a policy for bids by management employees. This also would be applicable, as and when announced, to any EoIs received in response to this advertisement for management buy-out. It may, however, be clarified that the process of disinvestment would not be delayed in case the policy announcement in this regard is delayed.

 

4.5              Definition of Networth :

 

Networth will be calculated as per definition u/s. 3(1)(ga) of The Sick Industrial Companies (Special Provision) Act, 1985, as amended upto date.

 

4.6              The PIM along with its enclosures does not constitute a commitment on the part of the GOI or BBUNL or Advisor, whether in respect of the disinvestment process or otherwise. Furthermore, the invitation confers neither any right nor expectation to any party to participate in the said process.

 

4.7              The GOI and BBUNL reserve the right to withdraw from the process or any part thereof, to accept or reject any or all offers at any stage of the process and/or modify the process or any part thereof or to vary any terms at any time without assigning any reason whatsoever. No financial obligation whatsoever shall accrue to the GOI or BBUNL or the Advisor in such an event.           

 

5.         INITIAL PROCESS

 

5.1              Following receipt of this PIM, interested party(ies) will be required to submit an EoI Package comprising an Expression of Interest, a Statement of Legal Capacity and a Request for Qualification (RFQ) in the format specified in Annexure II, III and IV.

 

5.2              Based on an evaluation of the EoI Package received, Interested Parties which are deemed fit (“Qualified Interested Parties” or “QIPs”) will be allowed to participate in the subsequent selection process (without conferring any right or expectation whatsoever to the QIPs).

 

5.3              Following signing of a Confidentiality Agreement (“CA”) by duly authorized personnel, QIPs will be provided with the Confidential Information Memorandum (“CIM”) and invited to participate further in the process as detailed in the CIM.

 

6.         FILING REQUIREMENTS

 

6.1              Interested party(ies) must submit, in duplicate, their EoI accompanied by a Statement of Legal Capacity and Request for Qualification (“RFQ”) the {“EoI Package”}, as per the formats given in Annexure II, III & IV of this PIM.

 

6.2              EoIs must be duly signed by the authorised representative of the interested party(ies) / designated lead bidder of the consortium of Companies. However, the RFQ and the Statement of Legal Capacity will have to be submitted by each member of the consortium, duly signed by an authorised official of the member.

 

6.3              All EoI Packages must be in English and each copy shall be bound in a separate volume.  Submission of the aforesaid documents by fax, e-mail or other electronic mode will not be acceptable.  It is the responsibility of the interested party(ies) alone to ensure that its EoI with required documents is delivered at the address given below by the stated time and date.  The covering envelope containing the aforesaid document should be clearly marked “Private and Confidential - Expression of Interest for participation in disinvestment in BSCL”. Neither BBUNL nor the Advisor shall be responsible for non-receipt of correspondence.

 

6.4              The EoI Package must be submitted by no later than 17.30 hours (Indian Standard Time), 7th May, 2003 at either of the following addresses:

Shri Pradeepta Bhattacharyya

Sr. Vice President

Merchant Banking

UTI Bank Limited

Maker Towers ‘F’,

Cuffe Parade, Mumbai – 400 005

E-mail: pradeepta.bhattacharya@utibank.co.in

Tel : +91 022 5638 1444

Fax : +91 022 2216 2467

 
 

Shri Shaji John

Manager

Merchant Banking

UTI Bank Limited

7, Shakespeare Sarani

Kolkata - 700 071

E-mail : shaji.john@utibank.co.in

Tel :+91 033 2282 4973/9832/33/34/2933

Fax : +91 033 2282 6463 / 7611

 

 

 

7.       EOI FILED BY CONSORTIA/JOINT VENTURES OF COMPANIES

 

7.1              If a Consortium or Joint Venture of Companies is formed, or proposed to be formed, specifically for the purpose of this investment, details of the members of the Consortium or Joint Venture and the extent of their interest herein must be provided in the EoI Package.

 

7.2              Any subsequent change by way of withdrawal/substitution of any member of the consortium or joint venture of Companies or any change affecting the composition of the consortium or joint venture may be permitted, but only with the specific approval of the GoI.  The GoI or BBUNL or the Advisor have the sole discretion to determine the impact of the change in membership on the structure and quality of the Consortium or joint venture of Companies and reject a proposal without assigning any reason whatsoever.

 

8.         RFQ DETAILS

 

8.1       The RFQ should be duly filled in and accompanied by the following details:

 

Ø       In case of a sole bidder

·         The Audited Balance Sheet and Profit & Loss Account of the sole bidder (Indian company/ OCB/ Foreign company) for the last 3 financial years.

·         Write-up on :

a)     Profile of the sole bidder

b)     A statement of reasons for strategic interest in BSCL

c)     Any other information considered material

 

Ø       In case of a consortium bid

·         The Audited Balance Sheet and Profit & Loss Account for the last 3 financial years of the lead bidder and other member companies associated in the bid.

·         Write-up on :

¨       Lead bidder

a)     Profile of the lead bidder

b)     A statement of reasons for strategic interest in BSCL

c)     Any other information considered material by the lead bidder

¨       Other member companies

a)     Profile of member companies in the consortium of Companies

b)     Any other information considered material by the lead bidder

 

9.         DISQUALIFICATIONS

 

9.1              The GOI/BBUNL/Advisor shall not consider for the purpose of qualification, the EoI which has been found to be incomplete in content or attachment or authenticity.

 

9.2              Without prejudice to any other rights or remedies available to the GOI/BBUNL/Advisor, a company/consortium/association of employees may be disqualified and its EOI dropped from further considerations for any of the reasons listed below:

 

ü      Material misrepresentation by such company/member of consortium/ association of employees in the EoI and/or RFQ or otherwise.

 

ü      Failure by such company/consortium/association to provide the information required to be provided in the EoI and RFQ, and

ü      Submission of EoI and RFQ in respect of any company/consortium/ association of Companies, where such company or member had already submitted an EoI or is a member of a consortium of Companies , which has already submitted an EoI and the earlier EoI has not been withdrawn.

 

9.3              If any information becomes known after the interested party has been qualified to receive the Confidential Information Memorandum (CIM), which would have entitled the GOI/BBUNL/Advisor to reject or disqualify the relevant company/consortium of Companies , the GOI/BBUNL/ Advisor reserves the right to reject the interested party at the time or at any time after such information becomes known to the GOI/BBUNL/ Advisor.

 

9.4              Further, Government of India have issued guidelines for disqualification of bidders seeking to acquire any public sector enterprises through the process of disinvestment vide Department of Disinvestment OM No. 6/4/2001– DD-II dated 13th July 2001, a copy of which is enclosed as Annexure V. The interested entities should not have been convicted by a Court of Law or indicted/have any adverse order passed against them by any Court of Law, or any other regulatory authority in any matter involving a grave offence and / or which casts a doubt on their ability to manage BSCL. Further such persons or companies, entities and / or their sister concern(s) should not have any chargesheets against them by any agency of the GOI or any Court of Law, which involves the matter concerning the security and integrity of India. The final decision in this regard would be taken by the GOI. The GOI, vide its circular F.NO.4/95/2000-DD (Vol. V), has clarified which offence can be treated as a “grave offence” as under:

 

a)     Only those orders of SEBI are to be treated as coming under the category of “grave offences” which directly relate to “fraud” as defined in the SEBI Act and/or regulations.

 

b)     Only those orders of SEBI that cast a doubt on the ability of the bidder to manage the public sector unit when it is disinvested, are to be treated as adverse.

 

c)     Any conviction by Court of Law.

 

d)     In cases in which SEBI also passes a prosecution order, disqualification of the bidder

 

The interested party(ies) are required to read the guidelines and satisfy themselves that they are qualified to bid for the stake in BSCL through the process of disinvestment and give an undertaking to the effect that they are qualified to bid for the stake in BSCL in the EoI to be submitted by them. Further, interested parties would be required to provide the information on the criteria, laid down in the guidelines of 13.07.2001 along with their EoI. The bidders shall be required to provide with their EoI an undertaking to the effect that no investigation by a regulatory authority is pending against them. In case any investigation is pending against the concern or its sister concern or against its CEO or any of its Directors/Managers/employees/members, full details of such investigation including the name of the investigating agency, the charge/offence for which the investigation has been launched, name and designation of persons against whom the investigation has been launched and other relevant information should be disclosed, to the satisfaction of the Government. For other criteria also, regarding the matters concerning the security and integrity of India, a similar undertaking shall be provided along with EoI.

 

9.5              Where the interested party is a consortium/association of Companies, BBUNL may disqualify the entire consortium/association for any of the reasons specified in paragraph numbers 9.1, 9.2, 9.3 and 9.4, even if it is applied to only one member of the consortium/ association.

 

9.6              The companies/consortia/association of Companies not satisfying the eligibility and requisite qualification criteria specified in the above sections are not eligible.

 

10.       FUTURE PROCESS

 

10.1          The EoI submitted by interested parties shall be evaluated on the basis of the criteria specified elsewhere in this document. If at any time, during the evaluation process, BBUNL/Advisor require any clarification, it reserves the right to request for such information from any or all of the companies/consortia/association of Companies and the companies/consortia/associations will be obliged to provide the same within reasonable time frame.

 

10.2     Based on an evaluation of EoIs received, interested parties, which are deemed fit (“qualified interested parties” “QIP”), will be qualified to participate in the subsequent selection process (without conferring any right or expectation whatsoever to QIP). QIP will be provided with the Confidential Information Memorandum (CIM) and shall be invited to participate further in the process described in details in the CIM. QIP will get an opportunity to conduct due diligence and take up site visits and will also have access to data rooms and to hold discussions with the management of BSCL/BBUNL/officials of Ministry of Heavy Industry and Public Enterprises/ Ministry of Disinvestment, Government of India. The rules regarding access to information in the data rooms will be provided to QIPs later. QIPs will be invited to submit their proposal and a binding price bid.

 

10.3     This document constitutes no form of commitment on the part of the GOI or BBUNL or the Advisor other than to provide further information on BSCL.  Furthermore, this document confers neither the right nor an expectation on any party to participate in the proposed divestment process.  The GOI/BBUNL/Advisor reserve the right to withdraw from the process or any part thereof or vary any terms at any time without assigning any reasons.  The GOI /BBUNL reserves the right to accept or reject any/all offer(s) without assigning any reasons.

 

10.4          The GOI may consider financial restructuring of BSCL at a later date if considered necessary.

 

10.5          BSCL has been referred to the Board of Industrial & Financial Reconstruction (BIFR) and the entire process of joint venture formation in BSCL will be subject to the approval of the BIFR.

 

 

11.       ENQUIRIES

 

11.1          The GOI/BBUNL/Advisor reserve the right not to respond to question raised or provide clarifications sought, in their sole discretion, if it is considered that it would be inappropriate to do so. Nothing in this document shall be taken or read as compelling or requiring the GOI/BBUNL/Advisor to respond to any question or to provide any clarification. No extension of any time and date referred to in this PIM shall be granted on the basis or grounds that the GOI/BBUNL/Advisor has not responded to any question / provided any clarification.

 

12.       GOVERNING LAWS / JURISDICTION

 

12.1          The laws of  India shall govern all matters relating to the joint venture formation process and the bidding procedure. Only Courts at Kolkata (with exclusion of all other Courts) shall have the jurisdiction to decide or adjudicate on any matter, which may arise out of or in connection with the joint venture participation.


 

PART II

 

BRIEF PROFILE OF BURN STANDARD COMPANY LIMITED (BSCL)

 

 

1.            INTRODUCTION

 

1.1              BURN STANDARD COMPANY LIMITED (“BSCL” or “the Company”) is a Government company under the administrative jurisdiction of the Department of Heavy Industries, Ministry of Heavy Industries and Public Enterprises, Government of India.

 

1.2              The Company (BSCL) was incorporated as a PSU in West Bengal as BURN STANDARD  COMPANY LIMITED on 01.12.1976. The management of the company was taken over by the Govt. of India on December, 1973 and the company was subsequently nationalised w.e.f. April, 1975. BSCL became a wholly owned subsidiary of the holding company Bharat Bhari Udyog Nigam Ltd., (BBUNL) upon its formation in September, 1986. BSCL was referred to BIFR in November, 1994.

 

1.3              BSCL is one of the largest wagon manufacturers in India with an installed capacity of 8661 Four Wheeler Units. It is backed by composite infrastructure for manufacture of special wagons for transporting Alumina Powder, cement, fertilizer, milk (in stainless steel tank) etc., besides tank wagon for transportation of liquid petroleum gas. It also has a steel foundry for manufacture of Cast steel bogies for wagon, couplers for wagons etc. BSCL delivers wide range of other engineering and refractory products & services viz. Tram Cars, Bridge Girders, Steel Plant Equipments, Mining equipments, Misc.Forged, Pressed, Cast, Machined & Fabricated Items, CMS Points & Crossings, Steel Sleepers, Rolling Stocks for Steel Plants, wide range of Refractory Bricks and ramming mass for Steel, Cement and Glass Industries.

 

1.4              The manufacturing units for wagon are located at Howrah and Burnpur in Burdwan District in West Bengal & refractory units at Salem in Tamil Nadu and  the registered office of the Company is located at Kolkata in West Bengal.

 

1.5              The company also has seven refractory units (non-operational) located in the State of West Bengal, Bihar and Madhya Pradesh and one Off-shore Platform Fabrication yard (non-operational) at Midnapore, West Bengal.

 

1.6              BSCL posseses ISO9002 certification manufacturing facilities for Wagons, Foundry, Refractory items manufacturing.

 

1.7              BSCL has been referrred to the Board of Industrial & Financial Reconstruction (BIFR) and the rehabilitation package is under consideration.

 

2.         KEY STRENGTHS OF BSCL

 

The key strengths of BSCL include :

 

v      All manufacturing units have been awarded ISO: 9002 accredition Certificate.

v      All manufacturing units contributed towards Export Promotion and Salem Works received Export Contribution Award from CAPEXCIL for the year 2001-2002.

v   All manufacturing Units have been modernized recently with an investment of Rs.513.10 millions for substantial improvement of quality & productivity and reduction in costs of operations.

v      One of the largest wagon manufacturer in the country, having complete infrastructure for the same.

v      Strategically located with close proximity to Kolkata port, airport as well as railway stations.

v      Exports wagons & Refractory products to many countries of the world.

v      Diversified range of engineering products and services.

v      Adequate power supply.

v      Technologically advanced production systems with the installation of plant and equipment necessary for modernisation of Wagon manufacturing, refractory and foundry facilities in operations and other systems are in place.

v      Large pool of skilled and experienced manpower.

v      Cordial industrial relations with no company specific closure on account of labour unrest in its history of operations.

 

3.         BSCL’S CLIENT PROFILE

 

In India, the clients of BSCL include The Indian Railways, SAIL, NTPC, NALCO, RSEB etc., amongst others, and major steel makers of the country. BSCL’s refractory products are exported to various countries of the world in Middle East & Africa.

 

4.            MANPOWER

 

BSCL has a large pool of qualified and experienced managerial and technical personnel with total staff strength of 2365 permanent employees as on 31.01.2003 of which 1828 employees (i.e. 77% of the total manpower) are workmen. The company has successfully completed a Voluntary Retirement Scheme in March, 2002 which was availed of by 3823 employees. The company has also successfully rolled back retirement age of employee from 60 to 58 years. Fresh VRS have been launched at Burnpur & Salem works in December, 2002.

 

5.            FINANCIALS

 

EQUITY BASE

 

 

Rupees in Millions

As on 31.03.2002

SHARE CAPITAL

 

 

AUTHORISED

 

12,10,000 Equity Shares of Rs. 1000/- each

1210.00

ISSUED AND SUBSCRIBED

 

1074652 Equity Shares of Rs. 1000/- each fully paid up. Of the above issued and subscribed Equity Shares 88,283 Shares were issued pursuant to a contract for consideration other than cash.

1074.65

 

SHARE DEPOSIT – PENDING ALLOTMENT

 

200.41

All shares are held by BBUNL being Holding Company and its nominees.

(a) Profitability

1.      During the period April’02 - January'03, performance of the operating units of BSCL have been significantly better as compared to that of the last two years. Result for the period April - January'03 vis-à-vis  2000-2001 and 2001-2002 are tabulated below:

            (Rs. In millions)

Particulars

2000-2001

2001-2002

2002-2003

 

Audited

Audited

Apr-Jan

Unaudited

Sales

1663.02

917.59

1001.29

Gross Profit / (Loss)

(Ex-interest & depreciation)

(356.16)

(502.59)

(206.95)

Cash Profit/ (Loss)

(416.11)

(751.15)

(404.74)

Net Profit/ (Loss)

(452.22)

(783.50)

(438.06)

 

2. Summary of BSCL’s Balance Sheet and Profit and Loss Account for the last three years is given below.

Balance Sheet

(Rupees In millions)

As on

 

31st March 2000

31st March 2001

31st March 2002

LIABILITIES

Paid-up Capital

 

Government of India / BBUNL

460.67

1074.65

1074.65

ii) Share Deposit (Government of India/BBUNL)

613.97

3.44

200.41

Borrowings from

 

i)                    Government of India / BBUNL

Plan 

Non-Plan

 

170.93

778.80

 

256.08

986.68

 

256.08

2702.53

ii)                   Banks/Financial Institution

Long Term

Cash Credit

Working Capital Demand Loan

 

--

40.19

176.00

 

--

64.95

222.91

 

---

52.06

299.00

iii)                 Restructuring Debenture Deposit (Govt. of India/BBUNL)

 

893.31

 

893.31

 

893.31

iv)               Sales Tax Loan (Govt. of W.B.)

41.07

41.07

41.07

v)                 Interest Accrued and due

3.45

--

8.75

Current Liabilities & Provisions

1964.41

2013.92

2417.17

TOTAL

5142.80

5557.01

7945.03

ASSETS

Gross Block

960.76

999.54

991.84

Less : Cumulative Depreciation

609.63

635.57

654.11

Net Block

351.13

363.97

337.73

Capital Work-in-Progress

90.32

176.88

310.04

Investments

202.27

202.33

202.33

Current Assets, Loans and Advances

1526.98

1389.51

1802.02

Misc.Exp. (to the extent not written off)

--

--

1085.09

Accumulated Losses

2972.10

3424.32

4207.82

TOTAL

5142.80

5557.01

7945.03

 

 

PROFIT & LOSS ACCOUNT

                                                                                                                             (Rs. in millions)

Financial Year Ended

1999-00

2000-01

2001-02

2002-03

Apr’02-Jan’03 (unaudited)

Income

 

 

 

 

Sales

1648.82

1663.02

917.59

1001.29

Cost of own mined materials

84.87

88.71

88.00

--

Other Revenue

41.55

40.63

26.29

7.29

Accretion/(Decretion) to Work-in-Progress

 

2.71

 

(17.12)

 

(12.73)

 

74.67

Grant-in-aid (VRS)

132.26

213.77

54.43

--

TOTAL

1910.21

1989.01

1073.58

1083.25

Expenditure

 

 

 

 

Consumption of raw materials

756.49

783.40

379.13

512.69

Manufacturing Expenses & Other Direct Costs

29.82

67.16

46.92

54.44

Stores, Spares Parts and Loose Tools Consumed

94.77

86.32

48.81

47.19

Employees’ Remuneration

721.25

712.26

435.45

233.28

Power & Fuel

167.80

197.08

137.54

125.62

Other Expenses

79.61

85.34

60.48

51.93

Excise Duty

132.94

72.38

23.22

34.95

Loss on disposal of Stores / Raw Materials

--

0.08

--

--

VRS Expenses (out of grant)

132.26

213.77

54.43

--

TOTAL

2114.94

2217.79

1185.98

1060.10

Profit/Loss before prior period adjustment, depreciation, interest, provisions and extra-ordinary items

(204.73)

(228.78)

(112.40)

23.15

Prior Period Adjustment Net

(34.28)

(53.70)

(28.05)

--

Depreciation

40.87

36.11

32.35

33.33

Interest

61.67

59.95

248.56

197.78

Provisions

12.56

5.00

55.05

4.04

Extra-ordinary items

--

(68.68)

(35.82)

--

VR Expenses (Amortised)

--

--

271.27

226.06

Profit/(Loss) before Tax

(354.11)

(452.22)

(783.50)

(438.06)

Provision for Tax

--

--

--

--

Net Profit/ (Loss) after Tax

(354.11)

(452.22)

(783.50)

(438.06)

Loss brought forward from previous year

2617.99

2972.10

3424.32

4207.82

Balance carried to Balance Sheet

(2972.10)

(3424.32)

(4207.82)

4645.88

 


 

6.            DETAILS ON THE UNITS

 

6.1              BSCL possesses three operational manufacturing units spread over States of West Bengal and Tamil Nadu. The Company’s Engineering units are located at Howrah and Burnpur and its Refractory units are  located at Salem, Tamil Nadu. BSCL also possesses seven non-operational refractory units located at West Bengal, Bihar and Madhya Pradesh and one non operational heavy fabrication yard at West Bengal for manufacture of off-shore well head platforms, which have been closed down w.e.f. 31.12.2000 and the employees were separated under VRS. BSCL also possess two non-operational subsidiary companies namely M/s. Bharat Brakes & Valves Ltd. and M/s. RBL Ltd. located at Kolkata, where all employees have been separated under VRS.

 

6.2              Engineering units at Howrah and Burnpur are engaged in manufacturing Rolling Stocks, Steel Castings, Forgings, Structural and Wagon Components. BSCL is the largest Rolling Stock manufacturer in the country and has an annual capacity of 8661 Four Wheeler Units (FWU). Its product range includes various types of Broad Gauge Rolling Stocks, Track accessories, Alloy Steel Castings, Steel Forgings, Bogies and Couplers, Steel Plant Equipment viz. Slag Cars, Hot Metal Transfer Cars, Charging Box Cars etc., Power Plant equipment, Bottom Discharge Hopper Wagons, BTAP Wagons for transportation of powder materials etc.

 

6.3       BSCL’s Steel Foundry is located at its Howrah unit. The facilities provided are capable for producing high quality castings having annual capacity of approx. 8400 tons. The Foundry has been equipped with  a modern Plant and Equipment to meet stringent specifications keeping in view the current global demand. BSCL’s foundry fully complies with the quality system of IS-12117 of 1987 in context to all foundry operations and has been termed as Grade ‘A’ Foundry in India by Research Design and Standards Organisation, Lucknow, a premier quality assurance institution of Indian Railway System.

 

BSCL’s Forge Shops are located at Howrah and Burnpur, having rated capacity of approx. 14400 tons and 12600 tons per annum respectively. Both the Units have Drop Stamping Hammers and Hydraulic Presses for producing good quality forgings and pressings.

 

6.4       BSCL’s operating Refractory Unit is situated at Salem, Tamil Nadu. The exacting and varying working conditions to which refractories are frequently subjected to and special high-grade qualities for successful operation have been developed after long experience and through Research and Development over the years. Products of Salem Unit has already received ISO 9002 accredition. Mag Carbon Bricks supplied by the unit to Bokaro Steel achieved record lining life in SMS-I Convertor exceeding 1000 Heats.

 

6.5       BSCL also has a Central Project Division at Kolkata. A separate Division has been set up to execute turnkey projects. The division has its own design, contract, purchase, sales, maintenance and erection sections. The Company has executed a number of Coal Handling Plants and Ash Handling Plants around the Country.

 

 

6.6       Unit-wise details of capacity, production performance are given in the tables below :

 

 

INSTALLED CAPACITY

 

Works

Major Products

 

Installed Capacity

Howrah

Wagon

Structural Steel Works/Pressed Steel Tank

Casnub

Steel Casting

Forging / Stamping / Pressing

Coupler

PTS & Xings

FWU

MT

 

Nos.

MT

MT

Nos.

SET

4750

12000

 

6000

8400

14400

12600

6000

Burnpur

Wagon

Forging / Stamping / Pressing / Springs Shop **

FWU

MT

3911

12600

Salem

Calcined Magnesite

Basic Bricks

DBM/ROK Sinter

MT

MT

MT

24000

15600

21692

 

**   Springs Shop is non-operational

 

 

Production Performance for the period April’02 - January'03 vis-à-vis financial year

2000-2001  and  2001-2002

 

                                               (Value in Rs. millions)

   Unit       FY  2000-01      FY  2001-02

Apr’02-Jan’03(02-03)

Gross Billable Gross Billable Gross Billable
Howrah Works

744.31

292.52

165.53

66.85

466.61

209.48

Burnpur Works

1144.16

738.60

686.04

388.33

757.51

439.90

Central Projects Division

20.69

20.69

10.12

10.12

55.29

55.29

Salem Works

441.09

441.09

326.24

326.24

308.06

308.06

Other Refractory  Units

--

--

--

--

--

--

Total BSCL

2350.25

1492.90

1187.93

791.54

1587.47

1012.73


 

 

6.7            MODERNISATION OF UNITS

 

BSCL have made substantial investments towards modernisation of the units, as per the rehabilitation scheme approved by BIFR. The details of the investment made are as under:

 

 

Howrah Works

 

Investment of Rs.174.70 millions have been made at Howrah Works towards infrastructural restructuring, which include installation of Continuous Sand Mixer Machine, H.P. Moulding Machine, H.P. Mould Handling Equipment, Sand Reclamation Plant etc. for modernisation of Foundry, which will substantially improve productivity and quality and reduce the cost of production of Foundry Division.

 

 

Burnpur Works

 

Investment of Rs.68.60 millions have been made towards modernisation of Burnpur Works for improvement of productivity and quality standard.

 

 

Salem Works

 

Investment of Rs.269.80 millions have been made towards modernisation of Salem Works which include 2500 MT Press, Co-clinker Project, Bulk Section Mechanisation, Dust Extraction System, etc. which will improve quality of bricks,  reduce cost of production and above all, diversify the product portfolio for entry into the cement and glass sector.

 

 

6.8            OPERATING UNITS OF BSCL

A. Howrah Works : BSCL

 

 Location Nityadhan Mukherjee Road,

Howrah –711 101,

Tel No :  (033) 2660 – 2601  to  2607

Fax No : (033) 2660 – 4869

Main Products Railway Rolling Stock, Railway Track accessories,  Alloy Steel Castings &  Forgings, Bogie & Couplers, Structural Fabrication.
Main Industries served Railways, Steel Plants, Power Plants, Fertilisers
Production : Phy Unit

2002-03

April –Jan

2001-02

2000-01 

1999-2000

- Wagon

- Bogie

- Coupler

- Points & Crossing          

- CMS Crossing

- Structural    

FWUs                                    Nos

Nos

Nos                   MT

MT                  

1202.50

224

394

-

-

-

372.5

232

347

3

-

-

1485

1249

1817

30

-

-

1825

922

2232

42

35

96

Profit / (Loss) :  

2002-03

April –Jan (provisional)

2001-02

2000-01 

1999-2000

- Sales Turn over

- Contribution

Rs. Milo

Rs. Milo

178.73

55.20

91.70

22.40

320.73

143.60

677.17

238.60

Foreign Tie ups  Present / Past :  Technical Collaboration with Miner, INC, USA for manufacture of Coupler.
   Manpower ( Nos) :   As on  31. 01. 03 
    Officer

    Staff

    Sub-Staff

    Workmen

      Total

               4

             31

             11

           206

           252

Land Area

 

Free hold ( Acres)

- Covered  Area

  - Open   Area

     Total   :

Lease Hold (Acres)

 

  24.48 

      --

  24.48

 30.02

 

Other Information  ISO accredited manufacturing facilities:

·         Manufacturing of  Wagon

·         Manufacturing  of  Steel Foundry products

Installed Capacity :

· Wagon   : 4750.0    FWUs.   

· Foundry:  10 000 MT. per annum approx.  

 

 

 

 

 

B.  Burnpur Works : BSCL

 

 Location Burnpur Works

Burnpur – 713325

District : Burdwan

Tel No :  (0341) 2230 – 521  to  526

Fax No : (0341)  2230531 

Main Products Railway Rolling Stock, Alloy Steel  Forgings.
Main Industries served Railways, Steel Plants, Power Plants.
Production : Phy Unit

2002-03

April –Jan

2001-02

2000-01 

1999-2000

- Wagon

- Forging       

FWUs

MT                  

1390

44

1247.5

    53

2160

82

1327.5

95

Profit / (Loss) :  

2002-03

April –Jan

(provisional)

2001-02

2000-01 

1999-2000

- Sales Turn Over

- Contribution

Rs. Milo

Rs. Milo

415.68

144.76

427.60

198.50

826.04

299.50

481.39

131.80

Foreign Tie ups  Present / Past :

 

   Manpower ( Nos) :   As  on  31.01. 03 
    Officer

    Staff

    Sub-Staff

    Workmen

      Total

            79

          175

            67

          988

        1309

Land Area

 

Free hold ( Acres)

- Covered  Area

-  Vacant   Area

Leased Land

    Total          :

 

      -- 

   88.80

 103.64

 192.44

 

Other Information  ISO accredited manufacturing facilities:

·         Manufacturing of  Wagon

 

Installed Capacity :

    Wagon   :     3911   FWUs.

 

Further drive for downsizing through VRS launched.   

 

 


 

 

 

C. Salem Works : BSCL

 

 Location Salem  Works

Tamil Nadu

Pin – 636 005

Tel No :  (0427) 2341 400 to 09

Fax No : (0427)  2341 407 

Main Products Full range of refractory items.
Main Industries served Steel Plants, Copper & Aluminium Plants etc.
Production : Phy Unit

2002-03

April –Jan

2001-02

2000-01 

1999-2000

- Refractory Item      MT

39024

 41114

44850

40491

Profit / (Loss) :  

2002-03

April –Jan

(provisional)

2001-02

2000-01 

1999-2000

- Sales Turn Over

 

- Contribution

Rs. Milo

Rs. Milo

351.59

 

197.56

392.10

 

90.70

495.18

 

101.50

426.70

 

127.10

Foreign Tie ups  Present / Past :

 

   Manpower ( Nos) :  As on  31. 01. 03 
    Officer

    Staff

    Sub-Staff

    Workmen

      Total

            62

            30

            29

           633

           754

Land Area

 

Free hold ( Acres)

- Covered  Area

-  Vacant   Area

    Total          :

Lease Hold(Acres)

 

     85.55 

     69.57

   155.12

   1882.56

Other Information  ISO accredited manufacturing facilities:

·         Manufacturing of  Magnesite fire bricks.

·       Preferred supplier of refractory bricks to  SAIL for highest number of Heat.

 

Further drive for downsizing through VRS launched.

             

 


 

 

D. Central Project Division : BSCL

 

 Location Central Project Division

Burn Standard  Company Limited.

22, Raja Santosh Road

Kolkata – 700 027

Tel No :  (033) 2479 – 9464, 2449 -  8418

Fax No : (033)  2479 – 7294

Main Products Turnkey projects on Ash and Coal Handling at Thermal Power Plants, fabrication of off shore drilling platforms.
Main Industries served Thermal Power Plants, ONGC.
Production : Phy Unit

2002-03

April –Jan

2001-02

2000-01 

1999-2000

Projects Rs. Milo

55.29

10.12

20.70

31.60

Profit / (Loss) :  

2002-03

April –Jan

(provisional)

2001-02

2000-01 

1999-2000

 - Sales Turn Over

 

- Contribution

Rs. Milo

Rs. Milo

55.29

 

3.42

20.32

 

11.80

20.32

 

11.80

35.10

 

23.60

Foreign Tie ups  Present / Past : McDormet USA for Platform Fabrication tecnology.
   Manpower ( Nos) :  As on 31. 01. 03 
    Officer

    Staff

    Sub-Staff

    Workmen

      Total

          6

          3

          -

           1

         10

Land Area

 

 

Leased Land

 

 

134.16  Acres

 

 

 

 

 

 

 

 


 

 

6.9       NON-OPERATING UNITS OF BSCL

 

 

BSCL has seven non-operating refractory units and one non-operating off-shore Platform Fabrication yard at Jellingham. All employees of these units have been seperated through VRS/Transfer. A brief details is given hereunder:

 

REFRACTORY UNITS

 

1.                  Jabalpur Works

 

 

Product

a)     Bricks to IS-6, b) Unikast Bricks, c) A.R. Bricks

Capacity Licensed – 30584 MT

Installed – 22144 MT

Land Free hold    – 8.8646 acres with 7 Bungalow.

Lease hold – 60.216 acres with factory area of 20 acres.

Mines Lametaghat Felspar Mines on leasehold land of 20.37 acres.

 

 

2.                  Niwar Works

 

 

Product

a)     Fire Bricks including High Alumina, b) Fireclay,

c) Monolithics

Capacity Licensed – 18000 MT

Installed – 18000 MT

Land Free hold    – 49.25 acres

Lease hold – 38.52 acres

Mines

1.      Pondi Limestone Mines with freehold land of 96.85 acres and leasehold land of 122.35 acres.

2.      Singhanpuri Fireclay Mines on leasehold land of 20 acres.

 

 

            3.            Ranigunj – II Works

 

           

Product Fireclay Bricks, b) Fireclay Mortar, c) Insulation bricks & mortar
Capacity ----
Land Free hold    – 35 acres approx. including factory area of 12 acres approx.
Mines Chandidaspur Plastic Clay Mines.

 

 

 

4.            Andal Works

 

 

Product Fireclay Bricks, b) Fireclay Mortar, c) Insulation bricks & mortar
Capacity ---
Land Free hold    – 6.12 acres.
Mines ---

 

 

5.             Durgapur Works

 

 

Product a) Fireclay Bricks, b) Mortar, c) Nozzle, d) Bottom Pouring Refractory 
Capacity ----
Land Free hold    – 36.54 acres approx. including factory area of 12 acres approx.
Mines ----

 

 

            6.            Ranigunj – Lalkoti Works

 

 

Product a) Silica Coke-oven Bricks, b) Silica Mortar, c) Silica Straight Bricks, d) Roof Set, e) Silica Nozzle Bricks,

f) Glass Tank Furnace Bricks, g) Insulation Bricks (Silica)

Capacity Licensed – 16800 MT

Installed –  9000 MT

Land Free hold    – 76.052 acres covering factory, colony, vacant land.
Mines

1.      Sumri-Satpahari Silica Stone Mines with freehold land 104 acres.

2.      Baisa Silica Stone Mines with lease hold land 5 acres. 

 

 

            7.            Gulfurbari Works

 

 

Product a) Fire Bricks, b) Bauxite Base high alumina, c) High Grog Bricks, d) Super Insulo Bricks, e) Low Iron High Alumina Bricks, f) Tailor-made High Alumina Bricks,

g) Ramming Mass, h) Mortars

Capacity Licensed – 30000 MT

Installed –  21000 MT

Land Lease hold    – 341.52 acres approx. covering factory, colony, Khudia Mines etc.
Mines Khudia Mines.

JELLINGHAM FABRICATION YARD (JFY)

 

 

Product Well Head Platforms & its allied components.
Capacity Licensed – 28000 MT
Land JFY (Gangrachar) – Leasehold land 130 acres.

Labour Camp – Leasehold land 4.16 acres.

Vacant (Khejuri) – Leasehold land 3 acres.

 

7.            SUBSIDIARY UNITS OF BSCL

 

BSCL has two subsidiary companies viz. RBL & BBVL, which are not in operation since 01.04.2001 & 01.04.2002 respectively. All the employees of these two companies had been separated through VRS. Salient features of these two companies are as follows:

 

 

   Bharat Brakes & Valves Limited :

 

Location

22, Gobra Road, Kolkata – 700 014

Tel No :  (033) 2244 – 4803

Fax No : (033) 2244 – 0855

 

Main Products Air Brake Equipment, Slack Adjuster, Exhauster.

Compressor, DOM, Valves Projects.

 

Main Industries served Railways Industry, Oil sector, Fertilisers, Power Sectors etc.

 

Production : Phy. Unit

2001-02

2000-01

1999-00

- Air Brake

- Slack Adjustor

- Exhauster

   Nos.

   Nos.

   Nos.

20

339

-

283

3398

-

   629

6099

    20

Profit/(Loss) :  

2001-02

2000-01

1999-00

- Sales Turn over

- Contribution

Rs. Milo.

Rs. Milo.                         

5.30

1.30

42.20

(0.90)

76.10

17.00

Foreign Tie ups  Present / Past :  M/s. SAB-WABCO, Sweden.
   Manpower (Nos.) :  As on 01. 04. 02  
    Officer

    Staff

    Sub-Staff

    Workmen

      Total

                   

 

ß-----------------NIL ---------------------à

                

Land Area

 

(Acres)

Free hold

Lease hold

Total

 

5.186

0.656

5.842

Other Information Operation ceased after separation of all employees through VRS. Recommended winding up by BIFR and is awaiting appointment of liquidator.
           

 

 

 

 

Reyroll Burn Limited (RBL Ltd.)

 

 Location 99, Dr. Abani Dutta Road, 

Howrah –711 101,

Tel No :  (033) 2666 – 4317

Fax No : (033) 2666 – 3647

 

Main Products Electrical Equipment for distribution and control of power, Switch Gear, Air Circuit Breaker , Control Panel etc.

 

Main Industries served Coal Sector, Chemical, Cement, Fertiliser and Oil Industries.

 

Production : Phy. Unit

 

2001-02

2000-01

1999-00

- Switch Gear

- Spare & Services

Nos.

Rs. Milo.

---

---

167

3.15

362

2.82

Performance :  

2001-02

2000-01

1999-00

- Sales Turn over

- Contribution

Rs. Milo.

Rs. Milo.

---

---

0.23

0.11

0.40

0.10

   Manpower (Nos.) :  As on 01. 04. 02
    Officer

    Staff

    Sub-Staff

    Workmen

      Total

                  

 

ß-----------------NIL ---------------------à                

 

 Area of works

 (in  Sq. Meter)

 

  Salkia  Works Ramkristopur Works
Land Area  - 1904

 

Built Up Area  - 6329

Land Area  -  422

 

Built Up Area – 1940

 

Other Information

Operation ceased after separation of all employees through VRS. Recommended winding up by BIFR. Liquidation process is in progress.

 


8.             UNITWISE PERFORMANCE

 

8.1            Unitwise Financial Performance (audited) for the year ended  31.03.2002 is as under :

(Rs. in millions)

Description

HW

BW

CPD/OSD

SW

LRU/Oth

    Total

 

 

 

 

 

 

 

Gross Production

165.60

686.10

10.10

326.20

-  

1188.00

Billable Production

66.90

388.40

10.10

326.20

-  

791.60

SALES W/O CED

91.40

426.10

6.20

365.50

-  

889.20

CED

0.30

1.50

-  

26.60

-  

28.40

TURNOVER

91.70

427.60

6.20

392.10

-  

917.60

Accr./(Deccr.)

3.90

18.70

0.60

-35.90

-  

(12.70)

OUTTURN

95.60

446.30

6.80

356.20

-  

904.90

OTHER INCOME

2.20

2.10

8.10

7.60

6.30

26.30

OWN MINE / CAP

-  

-  

-  

88.00

-  

88.00

GROSS OUTTURN

97.80

448.40

14.90

451.80

6.30

1019.20

VRS Grant

34.10

-  

0.90

-  

19.40

54.40

Consumption Total

44.50

189.90

4.90

235.50

0.05

474.85

as (%) of BV-Prodn

66.5%

48.9%

48.5%

72.2%

 

60.0%

Employment Cost

196.40

199.10

15.40

111.70

10.70

533.30

as (%) of BV-Prodn

-54.70

-5.00

-27.00

-9.40

-1.80

-97.90

EMPLOYMENT COST

141.70

194.10

-11.60

102.30

8.90

435.40

POWER & FUEL

24.00

18.20

0.07

90.50

4.80

137.57

REPAIR & MAINTENANCE

0.70

0.90

0.20

2.50

0.60

4.90

OVERHEADS/OTHER COSTS

15.30

15.30

5.10

15.20

4.70

55.61

CED ON SALES

0.70

1.50

-  

21.00

-  

23.20

GROSS MARGIN   before Prior Pd. / Prov./Extra Ord. Items 

(129.10)

28.50

16.23

(15.20)

(12.75)

(112.33)

Pr. Period

4.40

24.10

4.50

-0.20

-4.70

28.10

Provision

2.60

11.40

14.50

21.80

4.76

55.06

Extra Ord. Items etc.

-  

-  

35.80

-  

-  

35.80

Total of  Prior Pd / Prov. / Extra Ord. Items

7.00

35.50

54.80

21.60

0.06

118.96

GROSS MARGIN after

(136.10)

(7.00)

(38.57)

(36.80)

(12.81)

(231.29)

Prior Pd./Prov./Extra Ord. Items

 

 

 

 

 

 

BANK and Other  Int.

2.40

0.60

2.50

3.90

90.00

99.40

CASH P/L  w/o  GOI Int.

(138.50)

(7.60)

(41.07)

(40.70)

(102.81)

(330.69)

GOVERNMENT INT.

44.80

44.80

14.80

44.80

-  

149.20

CASH P/L after GOI INT.

(183.30)

(52.40)

(55.87)

(85.50)

(102.81)

(479.89)

DEPRECIATION

10.00

7.00

5.80

8.20

1.30

32.30

VRS Amort. / Def. Rev. Expenses

182.10

35.90

11.80

41.50

-  

271.30

NET PROFIT/(LOSS)

(375.40)

(95.30)

(73.47)

(135.20)

(104.11)

(783.49)

NO. OF EMPLOYEES

253

1395

10

777

41

2476

HW : Howrah Works, BW : Burnpur Works, CPD : Central Projects Div, SW : Salem Works, LRU: Loss-making Refractory Units, OSD : Off-Shore Division


 

8.2              Unaudited Unitwise Financial Performance for the period April, 2002 to January, 2003 (2002-03) is as under :

 

(Rs. in millions)

Description

HW

BW

CPD/OSD

SW

LRU/Oth

    Total

 

 

 

 

 

 

 

Gross Production

466.61

757.51

55.29

308.06

-  

1587.47

Billable Production

209.48

439.90

55.29

308.06

-  

1012.73

SALES W/O CED

178.67

401.47

55.29

322.44

-  

957.87

CED

0.06

14.22

-  

29.15

-  

43.43

TURNOVER

178.73

415.69

55.29

351.59

-  

1001.30

Accr./(Deccr.)

54.03

46.75

-  

-26.12

-  

74.66

OUTTURN

232.76

462.44

55.29

325.47

-  

1075.96

OTHER INCOME

1.37

2.68

-  

3.24

-  

7.29

OWN MINE / CAP

-  

-  

-  

-  

-  

-  

GROSS OUTTURN

234.13

465.12

55.29

328.71

-  

1083.25

Consumption Total

154.28

295.14

51.87

110.49

2.55

614.33

as (%) of BV-Prodn

73.6%

67.0%

93.81%

35.86%

 

60.66%

Employment Cost

14.99

150.05

2.32

61.82

4.10

233.28

as (%) of BV-Prodn

-  

-  

-  

-  

-  

-  

EMPLOYMENT COST

14.99

150.05

2.32

61.82

4.10

233.28

POWER & FUEL

27.57

15.95

0.03

80.32

1.75

125.62

REPAIR & MAINTENANCE

1.28

3.45

0.15

2.12

-  

7.00

OVERHEADS/OTHER COSTS

12.23

14.35

1.30

14.10

2.95

44.93

CED ON SALES

0.02

5.78

-  

29.15

-  

34.95

GROSS MARGIN   before Prior Pd. / Prov./Extra Ord. Items

 23.76

(19.60)

(0.38)

30.71

(11.35)

23.14

Pr. Period

-  

-  

-  

-  

-  

-  

Provision

-  

-  

  -

4.00

0.04

4.04

EOI etc

-  

-  

-  

-  

-  

-  

Total of  Prior Pd / Prov. / Extra Ord. Items

-  

-  

   -

4.00

0.04

4.04

GROSS MARGIN after Prior Pd./Prov. / Extra Ord. Items

23.76

(19.60)

(0.38)

26.71

(11.39)

19.10

BANK and Other  Int.

13.50

21.80

1.00

13.80

1.86

51.96

CASH P/L  w/o  GOI Int.

10.26

(41.40)

(1.38)

12.91

(13.25)

(32.86)

GOVERNMENT INT.

43.75

43.75

14.58

43.75

 

145.83

CASH P/L after GOI INT.

(33.49)

(85.15)

(15.96)

(30.84)

(13.25)

(178.69)

DEPRECIATION

8.65

5.90

-  

12.12

6.66

33.33

VRS Amort / Def. Rev. Expenses

151.76

29.90

9.84

34.55

-  

226.05

NET PROFIT/(LOSS)

(193.90)

(120.95)

(25.80)

(77.51)

(19.91)

(438.07)

NO. OF EMPLOYEES

252

1309

10

754

40

2365

 

HW : Howrah Works, BW : Burnpur Works, CPD : Central Projects Div, SW : Salem Works, LRU: Loss-making Refractory Units, OSD : Off-Shore Division

 

 

ANNEXURE – I: ADVERTISEMENT

 

Bharat Bhari Udyog Nigam Limited

(A Govt. of India Undertaking)

 

Burn Standard Company Limited

 

This announcement is neither a prospectus nor an offer or invitation to the public for sale of securities

 Expression of Interest

 

Bharat Bhari Udyog Nigam Limited (BBUNL) intends to sell, 60%, of its holding in its wholly owned subsidiary Burn Standard Company Limited (“BSCL” or “The Company”) to a strategic investor with transfer of management control. UTI Bank Ltd. in association with Deloitte Touche and Tohmatsu India Pvt. Ltd., has been retained as Advisors by BBUNL in connection with the proposed strategic sale.

 

BSCL is engaged in manufacturing Heavy Engineering Products like Wagons (General & Special Purpose), Foundry Products (steel casting Bogies, Couplers etc., for wagon), Mag Carb Bricks & other refractory items. The company has its manufacturing facilities at Howrah & Burnpur in West Bengal & Salem of Tamil Nadu.

 

Company(ies)/Joint Venture(s) of Companies/Consortium(s) of Companies (incorporated or to be incorporated) interested in participating in the proposed disinvestment are required to submit Expression of Interest (EoI) at either of the undermentioned addressess, not later than (IST) 17.30 hours by 7th May, 2003.

 

The Preliminary Information Memorandum (PIM) containing further information about BSCL, qualification requirements, formats for EoI and RFQ can be obtained from either of the undermentioned officers or accessed at  www.bbunl.com/ www.divest.nic.in/ www.dhi.nic.in

 


 

 

   

GoI/BBUNL reserves the right to withdraw from the process or any part thereof, to accept or reject any or all offers at any stage of the process and/or modify the process or any part thereof or to vary any terms at any time without assigning any reason whatsoever. No financial obligation, whatsoever shall accrue to GoI/BBUNL in such an event. Neither GoI nor BBUNL shall be responsible for non receipt of correspondence sent by post/courier/e-mail/fax.

ANNEXURE – II : EXPRESSION OF INTEREST

 

(To be forwarded on the letterhead of the interested party/lead bidder/member of the consortium of Companies  submitting the EoI)

 

Reference No…………….                                                               Date ……………..

 

Shri Pradeepta Bhattacharyya                             Shri Shaji John

Sr. Vice President (Merchant Banking)                Manager (Merchant Banking)

UTI Bank Ltd., Maker Towers ‘F’,                OR       UTI Bank Ltd.

11th Floor, Cuffe Parade,                                        7, Shakespeare Sarani

Mumbai – 400 005                                                    Kolkata 700 071

 

Sub : INVITATION OF EXPRESSIONS OF INTEREST FOR DISINVESTMENT OF 60% STAKE OF BHARAT BHARI UDYOG NIGAM LTD. (BBUNL)  IN BURN STANDARD COMPANY LTD. (BSCL), A WHOLLY OWNED SUBSIDIARY

 

Sir,

 

This is with reference to the advertisement dated ……….. inviting Expression of Interest for Burn Standard Company Limited (BSCL).

 

As specified in the advertisement, we have read and understood the contents of the Preliminary Information Memorandum (PIM) and are desirous of participating in the above disinvestment process, and for this purpose :

 

We propose to submit our EoI in individual capacity as ……………………… (insert company name)

 

OR

 

We have formed/propose to form a consortium of Companies  comprising  ……… members as follows :

 

1.                  …………………………………………  (insert company name)

2.                  …………………………………………  (insert company name)

3.                  …………………………………………  (insert company name)

 

OR

We are an association of BBUNL/its subsidiary/employees.

 

We confirm that we/our consortium/proposed consortium of Companies satisfies the eligibility criteria set out in relevant sections of the PIM including the guidelines for qualification of bidders seeking to acquire stakes in Public Sector Enterprises through the process of disinvestment issued by the Government of India vide Department of Disinvestment OM No.6/4/2001-DD-II dated 13th July, 2001 and subsequent amendments/clarifications thereto. The Statement of Legal Capacity and Request for Qualification as per formats indicated hereinafter, duly signed by us/respective members, who jointly satisfy the eligibility criteria, are enclosed.

 

 

We certify that in regard to matters other than security and integrity of the country, we have not been convicted by a Court of law or indicted or adverse orders passed by a regulatory authority which would cast a doubt on our ability to manage the public sector unit when it is disinvested or which relates to a grave offences that outrages the moral sense of the community.

 

We further certify that in regard to matters relating to security and integrity of the country, we have not been charge-sheeted by any agency of the Government or convicted by a Court of Law for any offence committed by us or by any of our sister concerns.

 

We further certify that no investigation by a regulatory authority is pending either against us or against our sister concerns or against our CEO or any of our Directors/Managers/employees.

 

We undertake that in case due to any change in facts or circumstances during the pendency of the disinvestment process, we are attracted by the provisions of disqualification in terms of the subject guidelines, we would intimate the BBUNL of the same immediately.

 

We shall be glad to receive further communication on the subject.

 

Yours faithfully,

 

Authorised Signatory

 

                                    For and on behalf of the party/consortium of Companies

                       

Enclosure :

 

1.      Statement of Legal Capacity

2.      Request for Qualification


 

ANNEXURE – III : STATEMENT OF LEGAL CAPACITY

 

(To be forwarded on the letterhead of the interested party/each member of the consortium submitting the EoI)

 

 

Reference No……………………………..                                       Date……………..

 

Shri Pradeepta Bhattacharyya                             Shri Shaji John

Sr. Vice President (Merchant Banking)                Manager (Merchant Banking)

UTI Bank Ltd., Maker Towers ‘F’,                OR       UTI Bank Ltd.

11th Floor, Cuffe Parade,                                        7, Shakespeare Sarani

Mumbai – 400 005                                                    Kolkata 700 071

 

 

Sub : INVITATION OF EXPRESSION OF INTEREST FOR DISINVESTMENT OF 60%  STAKE IN BURN STANDARD COMPANY LIMITED (BSCL), A WHOLLY OWNED SUBSIDIARY OF BHARAT BHARI UDYOG NIGAM LIMITED (BBUNL)

 

Sir,

 

This is with reference to the advertisement dated …………… inviting Expression of Interest for Burn Standard & Company Ltd. (BSCL).

 

We have read and understood the contents of the PIM and the advertisement and pursuant to this hereby confirm that :

 

We satisfy the eligibility criteria laid out in the PIM and the advertisement.

 

We are a member of the Consortium of Companies  (constitution of which has been described in the Expression of Interest) which jointly satisfies the eligibility criteria as detailed in the PIM.*

 

We have agreed that ………………….(insert member’s name) will act as the lead member of our Consortium of Companies .*

 

We have agreed that …………………. (insert individual’s name) will act as our representative on our behalf and has been duly authorized to submit the EoI. Further, the authorized signatory is vested with requisite powers to furnish such letter and Request for Qualification and authenticate the same.*

 

Yours faithfully,

 

 

Authorised Signatory

 

For and on behalf of (party/member)

 

* Strike off whichever clause is not applicable.


 

ANNEXURE – IV : REQUEST FOR QUALIFICATION

 

(To be submitted in respect of interested party/each member of the Co