New Changed Report

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PROJECT REPORT ON CASH MANAGEMENT SYSTEM AND INLAND DISCOUNTING ORGANIZATION BHUSHAN STEEL LIMITED, SAHIBABAD (Formerly Bhushan Steels and Strips Limited) Submitted to:- Submitted by:- Mr General Manager (Finance) Student of college 1

Transcript of New Changed Report

PROJECT REPORT ON

CASH MANAGEMENT SYSTEM AND INLAND DISCOUNTING

ORGANIZATION

BHUSHAN STEEL LIMITED, SAHIBABAD(Formerly Bhushan Steels and Strips Limited)

Submitted to:Mr General Manager (Finance) BHUSHAN STEEL LIMITED,

Submitted by:-

Student of college

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CONTENTS1. ACKNOWLEDGEMENT.. 2. PREFACE............... 3. INTRODUCTION.. -

Cash Management Service..

4. OBJECTIVE AND SCOPE OF RESEARCH 5. METHODOLOGY. 6. OVERVIEW OF STEEL SECTOR 7. PROFILE OF THE ORGANIZATION.. -

About the Company.. Research and Development.. Products from group Companies.. Companys Performance at a glance Cash Flow Statement Performance Spotlight..

- Comparitive Analysis of Financial Statement - Ratio analysis

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8. ACTIVITIES ENGAGED IN 9. BUSINESS GOALS AND STRATEGIES 10. S.W.O.T. ANALYSIS 11. CASH MANAGEMENT -

Importance of Cash for Company

- Cash Management at BHUSHAN STEEL LIMITED 12.LETTER OF CREDIT(INLAND DISCOUNTING. 13.TYPES OF CREDIT & IMPORTANCE14. ANALYSIS AND FINDINGS 15. CONCLUSION.. 16. RECOMMENDATION. 17. BIBLIOGRAPHY..

ACKNOWLEDGEMENT3

In pursuit of MBA , internship is a critical component of the entire package. Bhushan Steel limited has given me the opportunity to gain invaluable experience under the guidance of Mr. Pankaj Tiwari, (GM Finance). His continuous support and co-operation along with his invaluable in hand experience about the Cash Management Service provided me with the conceptual understanding and practical approach needed to work efficiently for this project. I am also indebted to him for sharing vital information critical to the accomplishment of the project objectives and providing direction in the pursuance of the project. The constant support rendered not only by him, but by the entire Bhushan Steel Limited family is praiseworthy. Last but not the least; I would like to take the opportunity to thank my trainer Mr. Harish Tiwari ,Mr.Vineet Nandedkar,Ms.Vimla Pandeyfor his intellectual stimulation and moral support through out my project.I hope this report reflecting my learning in the past 8 weeks is as beneficial to the organization as it has been to me. Again, I sincerely thank all of them. Sneha Srivastav

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PREFACEAs a part of PGDM Programme, a student has to pursue a project duly approved by the Director of the Institute. I had the privilege of undertaking a project on Cash Management at BHUSHAN STEEL LIMITED. Steel industry had been facing difficulties over the past few years. Lately however, it has witnessed a boom as a result of infrastructure development in the country and increasing demand in the world market. Cash management is very important for a company for its day to day operation. For cash management the very first requirement is the procurement of funds at lowest possible cost. Banks have realized this need of corporate and have come up with CASH MANAGEMENT SERVICES (CMS). This project evaluates the cost benefits of CMS to BHUSHAN STEEL LIMITED as compared to the conventional collection method when sale is on cash basis.

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INTRODUCTION

CASH MANAGEMENT SYSTEM:Cash management system (CMS) is one of the product ranges under the Collection & Production Services (CAPS) offered by banks in the country. CMS envisages elimination of one leg of movement of cheque from drawer to beneficiarys place and travel bank to speed up the process. The corporate can access the collections effected at meaning (around 170/ corp. banks & 488 locations by ICICI bank) locations across the country covered under the management within 24 to 48 hours at the location of corporate choice. CASH MANAGEMENT SERVICES: Cash management service, as the name suggest is intended at management of cash with corporate entities. It is a service provided by banks to corporate which enables them to have collection from their debtors/receivables with in a period of time earlier than mentioned on the instrument (check/DD). Every organization has receivables to collect from its dealers/ debtors/ customers. Every revenue collected by the organizations gets paid in one form or the other. CMS provides customized solutions to corporate needs in the liquidity management. A CMS facility in any organization will enable that organization to have prompt collection from its debtors who are located at distant places from the corporate office. Had this facility not been there, collection would have meant collection either through outstation cheque or through Demand Draft. In that case DDs worth corers of rupees would have brought substantial amount of DD charges to the

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companys P/L a/c or in the other case, the outstation would take days to reach the companys accounts department & then some more days to get cleared with deduction of some bank charges from the cheque amount. Both of these options shall mean that neither we get our collection quickly nor we get the full amount as banks would charges (deduct) some commission on the amount of cheque. Here CMS comes to our rescue. It is a beautiful facility giving us the desired liquidity in the shortest period of time. This service saves enormous amount places where the transaction volume is high.

The Cash Management System manages the transfer of funds between your cash accounts, cash management investment accounts, asset based revolving line of credit and line of credit accounts, according to the rules you set up for them. For each account, you must establish minimum and maximum balances and determine the relative priority for applying cash to the account, or using cash from the account. The Cash Management System applies these rules automatically throughout the Plan Period, using the other /miscellaneous cash account as a balancing account. The balance in the Other/Miscellaneous cash account will be calculated as containing whatever cash is available after all of the Cash Management System rules have been applied for the other accounts in the Cash Management System. If there is inadequate cash in the system, this will result in Other/Miscellaneous cash having a negative balance. Applying Extra Cash to the Cash Management Accounts - Cash is first applied

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to put enough cash in each of the Cash Management accounts so that their minimum balance requirements are met. This will occur even if it leaves the Other/Misc Cash account with a negative balance. If additional cash exists after the minimum balance requirements are met for all of the Cash Management Accounts, then cash is first applied to 'fill up' the Priority 1 account until it reaches its maximum allowed balance. If additional cash exists, it is next applied to the Priority 2 account, and so on until all Cash Management accounts have been filled to their maximum allowed balance, or the Other/Misc Cash account has run out of cash to apply. If the system runs out of extra cash to apply, the disbursement ends, leaving the Other/Misc Cash account with a zero balance. If all of the Cash Management accounts are filled to their maximum allowed balance, or the Other/Misc Cash account has run out of cash to apply. If the system runs out of extra cash to apply, the disbursement ends, leaving the Other/Misc Cash account with a zero balance. If all of the Cash Management accounts are filled to their maximum limits, then all remaining cash will be left in the Other/Misc. Cash account.

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Using Needed Cash from the Cash Management Accounts - If the other/Misc. Cash account has a positive balance; cash is first used from it until it is reduced to a zero balance. If more cash is required, it is then taken from the Priority 1 account, until it is reduced to the minimum amount, or no more cash is required. Next, cash is used from the Priority 2 account, and so on in similar fashion, until no more cash is needed or until all Cash Management Accounts have been reduced to their minimum amounts and more cash is required, then cash is removed from the Other/Misc. Account even if this results in a negative balance.

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The Cash Management System, located under the Assumptions/ Assumption Tools branch of the Organization Tree, allows us to view and set the cash management priorities for all of the Cash Accounts BBB's and Lines of Credit BBB's that is set up in the model.

ADVANTAGES OF CMS: 1. Saves a huge amount in form of DD commission and clearing charges.2.

All high value cheque gets cleared and credit is given the same day. there is a saving of interest on the amount that would have remained blocked under the normal course of clearing and credit by banks.

3. We desired the desired liquidity in form of cash very quickly. This means

4. Even if the cheque gets dishonored we can use the amount till the banks get to know it. During this time we can use this money. 5. When credit is given same day, we have our cash position by evening we

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can accordingly plan our investment and expenditures accordingly for coming days. 6. We can have an accurate figure of what were our collections from which place. LIMITATIONS OF CMS: 1. Collection would have meant collection either through outstation cheque or through DD. 2. DDs worth crores of rupees would have brought substantial amount of DD charges to the companys P/L account. 3. The outstation cheque would take days to reach to the companys account s department and some more days to get cleared with deduction of some bank charges from the cheque amount.

HOW DOES CMS WORKS:

Banks offering CMS allow the debtors of a corporate to deposit cheque for payment to the corporate at their place of origin. For example, if BSSL has an account with ICICI bank at Delhi and debtors at Chennai who wants to send this payment to BSSL through bank, CMS would allow him to deposit the cheque at ICICI Chennai in the account of BSSL. ICICI would not charge anything from the depositor and would give the credit of the cheque amount of BSSL in the evening at the same day. ICICI would charge a very nominal amount from BSSL, which is charged according to the cheque amount.

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Now this means that the cheque that would have taken 3 days to reach us through some courier and 3 more days to get cleared and involving some real transit costs, now gets cleared the same day it is deposited and involving nominal charges. At the same time the DD commission and clearing charges would no longer be deducted from the collectable amount. This CMS facility may seem convincing while going through this part of the report, but it is very useful and efficient as would be seen in the later part of the report.

LETTER OF CREDIT

A letter of credit is a document issued mostly by a financial institution which usually provides an irrevocable payment undertaking (it can also be revocable, confirmed, unconfirmed, transferable or others e.g. back to back: revolving but is most commonly irrevocable/confirmed) to a beneficiary against complying documents as stated in the credit. Letter of Credit is abbreviated as an LC or L/C, and often is referred to as a documentary credit, abbreviated as DC or D/C, documentary letter of credit, or simply as credit (as in the UCP 500 and UCP600). Once the beneficiary or a presenting bank acting on its behalf, makes a presentation to the issuing bank or confirming bank, if any, within the expiry date of the LC, comprising documents complying with the terms and conditions of the LC, the applicable UCP and international standard banking practice, the issuing bank or confirming bank, if any, is obliged to honor irrespective of any instructions12

from the applicant to the contrary. In other words, the obligation to honor (usually payment) is shifted from the applicant to the issuing bank or confirming bank, if any. Non-banks can also issue letters of credit however parties must balance potential risks.

The LC can also be the source of payment for a transaction, meaning that an exporter will get paid by redeeming the letter of credit. Letters of credit are used nowadays primarily in international trade transactions of significant value, for deals between a supplier in one country and a wholesale customer in another. They are also used in the land development process to ensure that approved public facilities (streets, sidewalks, storm water ponds, etc.) will be built. The parties to a letter of credit are usually a beneficiary who is to receive the money, the issuing bank of whom the applicant is a client, and the advising bank of whom the beneficiary is a client. Since nowadays almost all letters of credit are irrevocable, (i.e. cannot be amended or cancelled without prior agreement of the beneficiary, the issuing bank and the confirming bank, if any). However, the applicant is not a party to the letter of credit. In executing a transaction, letters of credit incorporate functions common to giros and Traveler's cheque. Typically, the documents a beneficiary has to present in order to avail himself of the credit are commercial invoice, bill of lading, insurance documents. However, the list and form of documents is open to imagination and negotiation and might contain requirements to present documents issued by a neutral third party evidencing the quality of the goods shipped.

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DIAGRAMATIC REPRESENTATION OF THE WORKING OF LETTER OF CREDIT

OBJECTIVE AND SCOPE OF RESEARCH BSL has saved huge amount of cost after adopting CMS. Had BSL not adopted this system of collection it would have received the amount in not less than 4-5 days. And for the same period it would have to avail the Cash Credit (CC) facilities

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granted to it by various banks. But in order to use the funds available through CC account it had to pay an interest of 9-10% and in some cases up to 12%. Use of CMS has brought down the cost considerably and BSL has been able to save the interest amount because now it receives the fund within 24-48 hrs. For calculating the cost saving for BSL the data set for the month of Ist quarter end (April 07-May 07) is considered for ICICI bank, Corporation Bank, HDFC Bank, UTI Bank and HSBC Bank. The cost incurred by BSL would include the draft charges, Postage charges and interest forgone. While calculating the draft charges it has been assumed that BSL bears the cost of draft sent by customers all the time, this might not hold true in all cases but for its major customers it would have to do so because of the competition in the industry. If BSL received cash in 4 days it had to avail the CC limit and paid interest for the same period that would also add to the cost incurred by BSL. BSL also would have to bear courier charge which is assumed to be Rs 35 per day per location which is equal to what DTDC charges. Interest is calculated @ 11% p.a. Interest Forgone = Total cash in a week * .11/365*(4- days taken in CMS) Where 4 are the days taken by the draft to reach Delhi & gets realized i.e. 2 days in transit & 2 days clearing The Objective was to gather information about the collection charges charged by different banks at different locations for the given period and find out which Bank provides better services at minimum cost. The scope of research is spread over the comparison of the collection charges under the Cash Management System availed by Bhushan Steel Limited through the above stated Banks.

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METHODOLOGY

For the research work, the data used for the project was both primary as well as secondary in nature. For collecting the primary data, the source was the company which provided the necessary data which would be needed for the project .For instance, for companys profile the company provided its annual report through which we gathered the necessary data and followed and prepared the companys performance for past few years. Even for calculating charges for the payment received by the company, which is being charged by the different banks for the CMS for different locations, as well as penalty charges in case of any default payment was provided by the company. We gathered the following subject matter from Company: Bank Reconciliation Statement Sheet. Statement of Accounts. Companys Balance Sheet. Statement of collection charges. Statement of Cheque These constituted the primary data for the project material of the research objective.

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The Secondary Data constitutes the Bank Profile and the services provided by them. The Steel Industry overview and the comparatives with the other steel industry constitute the Secondary data. The analysis is done on the basis of the various Statements of the Cash Management Services provided by the bank to Bhushan Steel Limited. The total collection from various locations is calculated for the respective banks. The collection charge is sought from the provided documents. In case of default of payments the penalty charges are taken into consideration. AN OVERVIEW OF STEEL SECTOR

Global Scenario "In 2005 World Crude Steel output at 1129.4 million metric tonne was 5.9% more than the previous year. (Source: IISI) "China remained the world's largest Crude Steel producer in 2005 also (349.4 million metric tonne) followed by Japan (112.47 million metric tons) and USA (93.89 million metric tons). India occupied the 8th position (38.08 million metric tons). (Source: IISI) The International Iron & Steel Institute (IISI) in its forecast for 2006 has confirmed the trend of recent years of an increase in steel use in-line with general economic growth and with the fastest growth occurring in the countries with the highest GDP growth such as India and China. Apparent world-wide Steel Demand is forecast to grow to between 1,040 and 1,053 million tonnes in 2006 from a total of 972 million tonnes in 2004. This is a growth of 4-5% over the two year period.

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However, according to IISI the cost of raw materials and energy would continue to represent a major challenge for the world steel industry. Market Scenario

After liberalization, there have been no shortages of iron and steel materials in the country. Apparent consumption of finished (carbon) steel increased from 14.84 Million Tonnes in 1991-92 to 43.471 million tonnes (Provisional) in 200607. Steel industry that was facing a recession for some time has staged a turnaround since the beginning of 2002. Efforts are being made to boost demand. China has been an important export destination for Indian steel. The steel industry is buoyant due to strong growth in demand particularly by the demand for steel in China.

Production

Steel industry was delicensed and decontrolled in 1991 & 1992 respectively. Today, India is the 7th largest crude steel producer of steel in the world. In 2007-08(Apri-May''07), production of Finished (Carbon) Steel was 8.250 million tonnes (Prov). Production of Pig Iron in 2007-08(April-May'07) was 0.803 Million Tonnes (Prov). The share of Main Producers (i.e. SAIL, RINL and TSL) and secondary producers in the total production of Finished (Carbon) steel was 33% and 67% respectively during the period 2007-08 (April, 2007).

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Last 4 year's production of pig iron and finished (carbon) steel is given below: (in million tonnes) Category 200304 2006-07 2007-08 (Provisional) May'07) Estimated) 3.764 3.228 4.695 4.960 0.803 36.957 40.055 44.544 49.391 8.250 200405 200506 (April(Prov.

Pig Iron Finished Carbon Steel (Source: Joint Plant Committee)

Demand - Availability Projection

Demand Availability of iron and steel in the country is projected by Ministry of Steel annually. Gaps in Availability are met mostly through imports. Interface with consumers by way of a Steel Consumer Council exists, which is conducted on regular basis. Interface helps in redressing availability problems, complaints related to quality.

Pricing & Distribution

Price regulation of iron & steel was abolished on 16.1.1992. Distribution controls on iron & steel removed except 5 priority sectors, viz. Defence, Railways, Small Scale Industries Corporations, Exporters of Engineering Goods and North Eastern Region. Allocation to priority sectors is made by Ministry of Steel. Government has no control over prices of iron & steel. Open market prices are generally on rise. Price increases of late have taken place mostly in long products than flat products.

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Imports of Iron & Steel

Iron & Steel are freely importable as per the extant policy. Last four years import of Finished (Carbon) Steel is given below:-

Year

2003-2004 2004-2005 2005-2006 2006-07(Prov. estimated) 2007-08 (Apr-May, 0.400 2007) (Prov. estimated) (Source: JPC)

Qty. (In Tonnes) 1.540 2.109 3.850 4.100

Million

Exports of Iron & Steel Iron & Steel are freely exportable. Advance Licensing Scheme allows duty free import of raw materials for exports.

Duty Entitlement Pass Book Scheme (DEPB) introduced to facilitate exports. Under this scheme exporters on the basis of notified entitlement rates, are granted due credits which would entitle them to import duty free goods. The DEPB scheme was temporarily suspended from 27th March 2004 to 12 July, 2004 for export of steel items. The Scheme has since been restarted. The DEPB rates have also been substantially reduced.

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Exports of finished carbon steel and pig iron during the last four years and the current year is as : (Qty. in Million Tonnes) 2002-2003 2003-2004 2004-2005 2005-2006 20062007(Prov.estimated) 2007-2008(April-May 0.850 07) (Prov.estimated) Finished (Carbon) Pig Iron Steel 4.506 0.629 4.835 0.518 4.381 0.393 4.478 0.440 4.750 0.350 0.073

(Source: Joint Plant Committee)

Duties & Levies on Iron & Steel Customs Duty Peak rate for non-agricultural products reduced from 15 % to 12.5 %. Customs Duty on stainless steel and other alloy steel has been reduced from 10 % to 7.5 %. Duty on non- alloy steel remains unchanged at 5%. Duty for ferro alloys reduced from 10% to 7.5%

Customs Duty on primary and secondary forms of non-ferrous metals viz. Zinc has been reduced from 10% to 7.5%. Duty on steel melting scrap has been raised to 5%.

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Duty on refractories reduced to 7.5 %. Duty most of the raw material for manufacture of refractories has also been reduced to 7.5%. Duty on ores and concentrates reduced from 5 % to 2 %. In respect of Ministry of Steel this would mean a reduction in duty of 3% on iron ore, manganese ore and chrome ore.

The Special Countervailing Duty (CVD) of 4 % to be imposed on all imports with a few exceptions viz. ships for breaking, coal and coke etc. Full credit to be allowed to manufacturers of excisable goods. Service tax: Service tax rate increased from 10% to 12%. Direct Taxes: No change in rates of personal income tax or corporate income tax. No new taxes are also being imposed.

Levies on Iron & Steel: SDF LEVY- This was a levy started for funding modernization, expansion and development of steel sector. The Fund, inter-alia, supports: 1) Capital expenditure for modernization, rehabilitation, diversification, renewal & replacement of Integrated Steel Plants. 2) Research & Development 3) Rebates to SSI Corporations

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4) Expenditure on ERU of JPC

SDF levy was abolished on 21.4.94 Cabinet decided that corpus could be recycled for loans to Main producers Interest on loans to Main Producers be set aside for promotion of R&D on steel etc. An Empowered Committee has been set up to guide the R&D effort in this sector. EGEAF Was a levy started for reimbursing the price differential cost of inputs used for engineering exporters. Fund was discontinued on 19.2.96.

Opportunities for growth of Iron and Steel in Private Sector The New Industrial Policy Regime: The New Industrial policy has opened up the iron and steel sector for private investment by (a) removing it from the list of industries reserved for public sector and (b) exempting it from compulsory licensing. Imports of foreign technology as well as foreign direct investment are freely permitted up to certain limits under an automatic route. Ministry of Steel plays the role of facilitator, providing broad directions and assistance to new and existing steel plants, in the liberalized scenario. The Growth Profile (I) Steel The liberalization of industrial policy and other initiatives taken by the Government have given a definite impetus for entry, participation and growth of the private sector in the steel industry. While the existing units are being modernized/expanded, a large number of new/Greenfield steel plants have also

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come up in different parts of the country based on modern, cost effective, state ofthe-art technologies. At present, total (crude) steel making capacity is over 34 million tonnes and India, the 8th largest producer of steel in the world, has to its credit, the capability to produce a variety of grades and that too, of international quality standards. As per the ratings of the prestigious World Steel Dynamics", Indian HR Products are classified in the Tier II category quality products a major reason behind their acceptance in the world market. EU, Japan has qualified for the top slot, while countries like South Korea, USA share the same class as India. (II) Pig Iron In pig iron also, the growth has been substantial. Prior to 1991, there was only one unit in the secondary sector. Post liberalization, the AIFIs has sanctioned 21 new projects with a total capacity of approx 3.9 million tonnes. Of these, 16 units have already been commissioned. The production of pig iron has also increased from 1.6 million tonnes in 1991-92 to 5.28 million tonnes in 2002-03. During the year 200304, the production of Pig Iron was 5.221 million tonnes.

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PROFILE OF THE ORGANISATION

BHUSHAN STEEL LIMITED:Bhushan Steel Limited, is an ISO 9002, QS 9000 certified and a company of Rs. 2868 crores ($650 million approx.). As one of the prime movers of the Technological Revolution in the Indian Cold Rolled Steel Industry, BSL has emerged as the countrys largest and the only CR steel plant with an independent line for manufacturing Cold Rolled coils and sheets up to a width of 1700 mm, as well as Galvanized Steel Coils & Sheets up to width of 1350mm. The Company currently has capacity to produce ALMOST ONE MILLION MT/Annum of Cold Rolled Steel at Sahibabad and Khopoli Works. The Company is a single-point source for a wide variety of products such as CRCA, Galvanized and Color coated sheets, High tensile steel trapping, hardened and tempered steel strips (HTSS) and Precision tubes.

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Bhushan Steel Ltd. (BSL) is in the process of setting up one of the most advanced Hot Rolling Plants of the world in Orissa. The construction of the first phase is being carried out with speed and is nearing completion. Together with its state-ofthe-art Cold Rolling Plant at Sahibabad and another one at Khopoli, the company is well poised in the industry. The company has recently launched Galume, zinc and aluminium coated sheet, for the first time in India. Thereby, it is all set to revolutionize the industry and demand patterns. BSL is currently exporting to Europe, USA, Canada, Africa, China and the Middle East, in addition to the Asian markets. And, is eagerly looking ahead, steadily defining the future of steel day by day.

Cold

Rolled

Steel:

The Cold Rolling Mill Complex is a towering citadel the first of its kind in the Steel sector of the country having equipments supplied by Global leaders.26

The state-of-the-art 6 Hi 1700 mm Universal Crown Cold Rolling Mill from Hitachi, Japan ranks as the widest CR mill in India along with additional features of both side auto shape control with automatic spot cooling system for better shape & flatness with the most advanced Level-II adaptive control computerization. It is the first mill of its kind in the whole of Asia.

(6HiUCM Hitachi, Japan) The mill is capable of maintaining extremely close thickness tolerances and can produce ultra-thin CR Steel for inner shield of Picture Tube and Battery application i.e. up to a thickness of 0.10mm in close tolerances.

The company has also installed Electrolytic Cleaning Line (ECL) with technology from Nippon Denro, Japan to remove surface contaminants. The27

100% Hydrogen based (Hicon) high convection annealing furnaces from world leader Ebner, Austria are yet another exclusive feature of our identity.

(ECL Ebner, Austria) The Skin Pass mill from Calcim, France with tension leveler and Electrostatic Oiling for uniform spray of rust preventive oil provides world standard quality of material suitable to manufacture Automotive Skin panels.

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(Skin Pass Clecim, France) The Roll Grinding machine and the Electrical Discharge Texturizing machine (EDT) for the rolls from the world leaders Waldrich Siegen, Germany ensures uniform Mirror finish material for Automobile Head lamp reflectors and other Electroplated items & Matte surface finish, which in turn improves the paintability, suitable for automobile skin panels,respectively. The CR Slitters from Fimi, Italy and Daehyun, Korea with most advanced features like 3 M tension roll and computerized shim-less tooling ensure absolute scratch-free material with a very close tolerance and width as low as 10mm. These machines are the first other kind in the country.

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(CR Slitters FIMI, Italy)

The Cut-to-length lines from Heinrich George, Germany; Fimi, Italy and Daehyun, Korea are milestones of precision engineering. These machines provide a very close tolerance on length as low as +2/-0mm (even less can be achieved). The on-line washing, oiling, electromagnetic sheet stacker and on-line packing system attached to these lines ensure International Quality Standards. These are the first lines of their kind in the country where handling of sheets are completely automated during shearing and packing.

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(CTL Daehyun, Korea) To ensure the right quality input of HR Coils to the mill, the company has the most modern Push-Pull Pickling line with technology back up from Proeco, Canada. In addition to the above the company also has one latest 6 Hi 1020mm & one 20 Hi 1250mm wide Sendziemer mill with automatic gauge control and

8 CR Slitters and 14 Cut-to-length lines. The company enjoys uninterrupted power supply from the UPSEB on 220KV, which is the first of its kind in the State of Uttar Pradesh. Further to have captive and better quality of power for the smooth operation of the complex, company has installed 24MW Captive Power Plant imported from MAN B&W, Germany. This ensures consistent supplies of material to our customers even in times of acute power shortage.

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Galvanized steel: The Galvanized sheets & coils manufactured by the company have excellent Zinc adhesion and corrosion resistance achieved by applying a special coating of Zinc & Zinc alloys. This is further enhanced by giving a special chemical treatment on the zinc-coated surface to prevent the formation of white rust. The Company has three Galvanizing lines consisting of most modern continuous annealing furnaces based on the design of Stein Heurty, France.

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(Continuous Galvanizing Line) One of the Galvanizing line has on line 4 Hi skin passing cum tension leveling facility to produce Galvanized skin passed Material with zero spangles for White Goods, Domestic appliances & Automotive applications. The on line coating thickness control equipment from Valmet, Canada and Radiometric, Germany attached to the galvanizing lines ensure uniform zinc coating mass. The Galvanized skin passed sheets & coiled has an excellent surface finish suitable for manufacturing products of aesthetic importance. This product is widely accepted and extensively used for the manufacture of Air Conditioners, Washing Machines, Refrigerators, Dish Washers, Visi Coolers, Microwave Ovens, Computers, Bus body, Automobile Components, Color coated sheets & coils. The company is the largest supplier to these industries-in fact single source suppliers to many of the customers. Recently, the company has also introduced Galvanneal material, which is most suitable for Appliances and Automobiles industry.

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The Galvanized sheets, coils and corrugated sheets manufactured by the company are globally accepted especially in important international markets of Europe, USA, Canada, South Africa, Kenya, Ethiopia, UAE, Qatar, Oman, Nepal, Myanmar, Taiwan, Vietnam, China, Uganda, Singapore, Tanzania, and Bangladesh.

Research & Development The Company has a latest state of the art R&D Center and has many firsts to its credit including development of High Tensile & IF Steel for passenger car skin

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panel application. Development of panel grade material for Refrigerator. Visi Coolers & Chest Coolers of Coca-Cola & Pepsi, ultra-thin CR Steel for picture tube & battery application etc. A fully equipped Quality Control laboratory has test equipments of unmatched standards- Polyvac 2000 Emission Spectrometer from Hilger, England, fully computerized Universal Testing machine, Micro Hardness tester from Zwick, Germany, Drawability tester from Tinius Olsen, USA, Ionometer from Orion, USA, surface Finish tester from innovation, product quality and product range supported by an extensive network of branch offices, dynamic dealers and distribution network, BHUSHAN is today a familiar name in the country. STRATEGIC ALLIANCE In order to acquire the latest know-how to establish the quality requirements of all customers in Automobile, White Goods Appliances & General Engineering industry, the company has entered in to a technical collaboration with the world's one of the largest steel producer Sumitomo Metal Industries, Japan.

Products from Group Companies Group Companies Products Section / Dimension Grades Standard Applications Used

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Bhushan Industries Limited, Chandigarh

Width: 12-535 mm EDD,DD,D Narrow Thickness: 0.30- High Carbon IS / JIS Width CR 4.00 mm Steel Width: 20-70 mm Thickness:0.500.80 mm 'Zn' Cable Tape D coating: 210 gm/m* & above on each Side

Automobile, white goods and General Engg. Industry

Bhushan Metallics Limited, Derabassi (Punjabi)

IS

XLPE Cables

Outside Diameter: M.S ERW IS/BS/ 1/2"-4" (15 mm to Black & GI Pipes ASTM 100 mm N.B.) Outside Diameter: 8.80 - 50.80 mm Thickness: 0.35 3.25 mm Length: Bright 3.0 - 9.0 mtr in Oiled long length. 150 2500 mm in cut length.

Water, air and gas Application

Bhushan Metallics Limited, Chandigarh

Precision Tubes

&

IS/BS/ JIS/DIN/ ASTM

Automobile, Bycycle, Process, Electrical & General Engg. Industry.

Bhushan Industries Limited, Calcutta.

Width:1250 mm CR/GP/ GC (max.) Thickness : EDD, DD, D IS/ JIS 0.12 - 1.60 mm

Roofing, Construction &General Engg. Application

COLD ROLLED STEEL COILS/SHEETS SPECIFICATIONS

Thickness(mm)

0.10 to 4.0036

Width (mm) Cut-to-Length (mm) + OUTER Coil Weight (MT) DIAMETER(MM) Surface Finish THICKNESS(MM) LENGTH APPLICATIONS Grades

10 to 1700(Max) Up to 4500mm with tolerance of +2/-0 mm. ERW TUBES CEW TUBES (12.70 TO 114.00MM available on request ) Further close tolerance 09.00 TO 110.00 Up to 30 MT ( 7 to 18 Kg/mm width ) Super TO6.00Bright, Dull & 0.80 TO 6.00 Matte. 0.40. Bright, UPTO 12 MTRS. (UPTO 12 MTRS. R Value with controlled Rmax on request). Automotive, Boiler & JIS/BIS/ASTM/EN Automotive, Boiler, Standards Shock Specifications-As per Heat Low Exchangers ,Air Absorbers, Textiles, General Carbon CRCA Grades Heater, GEN. EGG., Engg. Propeller Shafts, Super EDD/EDD/DD/D (SPCX, SPCEN, SPCD, SPCC) of nonBicycle & Propeller Cylinder bore tubes for ageing, IF-Height Strength steel (IF-HSS), High Strength Low Shafts special applications & front Alloy steel (HSLA). viz., ST-42, ST-45, ST-52, SAPH-400/410, fork tube for two wheeler. Steel for Porcelein Enameling, Corrosion Resistant Steel viz. Tin