THE COMPANY CHITTAGONG STEEL MILLS LTD.
Company Description Chittagong Steel Mills Ltd. was established as a trunkey project by M/S. Kobe Steel Ltd. Japan & was commissioned in 1967. It has a land area of 215.95 acres and covered space of about 0.90 million sq.m.

The plant comprises of 4 (four) oil/gas Fired Basic Open Hearth Furnace (OHF), Ingot Casting Facilities, Blomming Mill, Sheet & Thin Plate Mill & Galvanizing Shop with necessary backup services. It has production facilities of Steel Ingot, Billet, Angles, Section Bar, BP Sheet, Thin Plate, Heavy Plate, GI/CGI Sheet etc.
History of the Company The plant was commissioned in 1967. At the time of commissioning of the plant it had 3 nos. 60 Ton Open Hearth Furnace & the plant rated capacity was 150,000 Tons of Ingot per year. In 1970 an additional 60 Ton OHF was built making the total number to 4 (four) furnaces.
Heavy Plate Mill was installed. The plant suppliers rate capacity was thus raised to 2,50,000 Tons Steel Ingot per year.
Operational Structure It is a process type Industry. As per market demand product mix are prepared. Ingot are casted in Melting Shops in OHF. For making MS Plate, BP Sheet, CGI/GP Sheet ingot are processed through Heavy Plate Mill, Sheet/Thin Plate Mill/Galvanizing Shop. For making Billet, Angle & Rod Ingot are passed through Blooming Mill/Bar Mill.
Human Officers Technical Non-Technical Staff Workers Total
Resources - 135 44 312 1440 1931
Organisation The limited company with authorised capital of TK. 50.00 core and Issued and Paid up capital of TK. 25.00 core divided into 2,50,00,000 nos. of ordinary shares of TK. 100.00 each. The Company is run by a Board Of Directors appointed by Govt. under Company Act. Operation of Company is controlled by a Managing Director appointed by BSEC. (Bangladesh Steel & Engineering Corporation). He is also a Director of the Company Board.
Sector Industrial Sector of the Country : Shipbuilding & Engineering Sector.
Regulatory Environment The mill is controlled by Bangladesh Steel & Engineering Corporation (BSEC), which is an autonomouse organization under the Ministry of Industry, Government of Bangladesh.

Bangladesh provides wide range of incentive packages for private investors-both local and foreign. The industrial policy of 1991, reforms in trade and fiscal policies are all geared towards encouraging and promoting private investment. Deregulation and liberalisation of the economy have been adopted as the cardinal principles of the economic policies of the Government of Bangladesh.
Current Status Running
Shareholders Govt of Peoples Republic of Bangladesh. Percentage(%) 100 %

Income Statement (1996-97)
Financial Statement as on 30th June 1997 One US$=TK. 47
Particulars - Particulars IN US dollar
Sales (net of Taxes) 46.43 Total Sales & Income 98,78,723.00
Less : Cost of Sales 46.61 Net Total Expenses 281,12,765.00
Gross Profit : (0.18)
Less Admn. & Selling Expenses 18.93 Profit/(Loss) (182,34,042.00)
Financial Expenses 66.59 Accumulated profit/(Loss) (11,17,44,680.00)
Net Profit/(Loss) (85.70)

Balance Sheet (1996-97)
Particulars Taka in Core In US dollar
Assets - Fixed Assets 636,00,000.00
Current Assets 110.20
Fixed Assets 298.92 Current Assets 234,46,808.00
Total Assets 409.12
Liabilities and Capital - Current Liabilities 10,16,89,360.00
Current Liabilities 477.94
Long Term Liabilities 431.38 Long Term Loan 917,82,978.00
Capital 25.00
Total Liabilities & Capital 934.32
Accumulated Loss (525.20)
Total 409.12

Key Balance Sheet Features 1. Current Ratio 0.25:1 2. Quick Ratio 0.09:1 3. Gross Profit to Sales -

Prequalification Conditions for Potential Bidders Nill

Current Status The mill is running and scheduled for Privatization in the year 1998-99.

Financial Adviser Director (Finance) of BSEC.

The Offer 100% equity with management is controlled by the Government.

Key Contacts Privatization Commission, 10 Dilkusha C/A, Jibon Bima Tower (14th Floor), Dhaka-1000, Bangladesh. Tel: 88-02-9551986 Fax: 88-02-9556433 Email : pb@bdonline.com

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