MIRA INFORM REPORT
|
Report
Date : |
25.11.2006 |
IDENTIFICATION
DETAILS
|
Name : |
JINDAL
STEEL AND POWER LIMITED |
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Registered
Office : |
O.P. Jindal Marg, Delhi Road, Hisar-125005, Haryana, |
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Country: |
India |
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Financials
(as on): |
31.03.2006 |
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Date
of Incorporation : |
28.09.1979 |
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Com.
Reg. No.: |
05-9913 |
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CIN
No.: [Company Identification No.] |
L27105HR1979PLC009913 |
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TAN
No.: (Tax
Deduction & Collection Account No.) |
JBPJ00181G / DELJ03437A |
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Legal
Form : |
Public
Limited Liability Company. The company’s shares are listed on the Stock Exchanges. |
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Line
of Business : |
Manufacturers of Sponge Iron and Mild Steel Slabs, Mining
of Ferro Chrome and Generation of Electricity. |
RATING & COMMENTS
|
MIRA’s
Rating : |
Aa |
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
71-85 |
Aa |
Possesses adequate working
capital. No caution needed for credit transaction. It has above average
(strong) capability for payment of interest and principal sums |
Large |
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Maximum
Credit Limit : |
USD
73500000 |
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Status
: |
Good |
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Payment
Behaviour : |
Regular |
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Litigation
: |
Clear |
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Comments
: |
Subject is a
well-established and multi product Company of the Jindal Group, reputed
industrial house in India. The Company is making
steady progress in its turnover and profits. Directors are very resourceful and
respectable businessmen. Trade relations are fair. Payments are usually
correct and as per commitments. The Company can be considered normal for business dealings
at usual trade terms and conditions. |
LOCATIONS
|
Registered
Office : |
O.P. Jindal Marg, Delhi Road, Hisar-125005, Haryana, India |
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Tel.
No.: |
91-1662-222471/83 |
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Fax
No.: |
91-1662-222476 |
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E-Mail
: |
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Website
: |
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Area : |
Owned |
|
Location : |
Industrial Area |
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Corporate
Office : |
Jindal Centre 12, Bhikaiji Cama Place, New Delhi - 110
066, India |
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Tel.
No.: |
91-11-26188345-60 |
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Fax
No.: |
91-11-26161271/26170691 |
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E-Mail
: |
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Marketing Office : |
v
Jindal
Enclave, Old Standard Mill Compound, Behind Maratha Udyog Bhawan, Prabha Devi
Marg, Mumbai - 400 025, Maharashtra Tel. No. 91-22-24328000 Fax. No. 91-22-24238312 E-mail jindal@bom2.vsnl.net.in v
4C, Century Plaza, 560-562, Anna Salai, Chennai –
600018 Tel. No. : 91-44-52132134, Fax No. : 91-44-52132334 E-mail : jsplchennai@vsnl.net |
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Factory
1 : |
·
Karsia
Road, Post Box No. 16, Raigarh - 496 001, Chhattisgarh Tel. No.:91-7762-227001-5 Fax No.:91-7762-227021-23 Telex : 0650-1202
JSL-R IN E-Mail : jsplrgh@gwr1.dot.net.in
·
30
KM Stone, G.E. Road, Mandir Hasaud, Raipur - 492001, Chhattisgarh Tel. No.: 91-771-2471205-07 Fax No.: 91-771-2471404-2471214 ·
TRB
Iron Ore Mines, P O Tensa - 770 042, Dist. Sundergarh, Orissa Telfax. No. 91-6614-2736023/24 ·
Jindal
Open Cast Coal Mines Village, Dongamauha, P.O. Dhaurabhata, Tal. Gharghoda,
Dist. Raigarh, Chhattisgarh Tel. No. 91-7767-247484-85
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Area : |
Owned |
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Location : |
Industrial area |
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Branches
: |
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DIRECTORS
|
Name : |
Ms. Savitri Jindal |
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Designation
: |
Chairman |
|
|
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|
Name : |
Mr.
Naveen Jindal |
|
Designation
: |
Executive
Vice Chairman and Managing Director |
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Qualification: |
M.B.A.
from University of Texas at Dallas U.S.A and B.com (Hons) from Delhi
University. |
|
Profile: |
He was the Joint Managing Director of Jindal Strips
Limited for three and half years and the managing director of Jindal Overseas (ME) FZE, Dubai for a
period of nine months. He is the Managing Director of the Company for the
past six years and possesses vast knowledge and experience in managing the
affairs of the business and industry. He is mainly responsible for enhancing
production capacity of Sponge Iron, Steel and generation of Power. During the
period of six years and under his leadership, supervision and guidance, the
Company has grown manifold. In his maiden attempt, he won Loksabha seat from
Kurukshetra Constituency in the state of Haryana on 13.05.04 with a very high
margin and is one of the young members of Parliament. |
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|
|
|
Name : |
Mr.
Vikrant Gujral |
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Designation
: |
Vice
Chairman & Chief Executive Officer |
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Qualification: |
Mechanical
Engineer |
|
Experience
: |
40 years
experience in Steel Plants of India Limited. |
|
Profile: |
He was Executive Director and Chairman of Indian Iron and
Steel Co. Limited (IISCO), Chairman of Maharashtra Elektrosmet Limited. In
November 2003 he was awarded the coveted “National Metallurgist” award for
the year 2003 by Ministry of Steel, Govt. of India in recognition of his
outstanding contribution in Iron and Steel Plant modernizing projects
technology. He was also Director of Hindustan Steel Works Construction
Limited and Bhilai Oxygen Private Limited. He joined the Company In April
2001. Rail and Universal Beam Mill Project was completed and commissioned
under his guidance. |
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|
|
|
Name : |
Mr. Ratan
Jindal |
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Designation
: |
Director |
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|
Name : |
Mr.
Suresh Baid |
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Designation
: |
Director |
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Name : |
Mr.
Rajendra Singh |
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Designation
: |
Director |
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Name : |
Mr. S.
Ananthakrishnan |
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Designation
: |
Director
(Nominee – IDBI Bank Limited) |
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|
|
|
Name : |
Mr. Ashok
Alladi |
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Designation
: |
Director
(Nominee - ICICI Bank Limited) |
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Name : |
Mr. Anand
Goel |
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Designation
: |
Whole-time
Director |
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Name : |
Mr.
Sushil K. Maroo |
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Designation
: |
Vice
President (Corporate Finance) |
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|
|
|
Name : |
Mr. T. K.
Sadhu |
|
Designation
: |
Company
Secretary |
MAJOR SHAREHOLDERS
|
Names of Shareholders |
No. of Shares |
Percentage of Holding |
|
Promoters |
18211329 |
59.14 % |
|
FIs/Banks/MFs/UTI |
1711665 |
5.56 % |
|
Corporate
Bodies |
738949 |
2.40 % |
|
NRIs/OCBs/FII |
6655205 |
21.61 % |
|
Public |
3475120 |
11.29 % |
|
Total |
30792268 |
100.00 % |
BUSINESS DETAILS
|
Line
of Business : |
Manufacturers
of Sponge Iron and Mild Steel Slabs, Mining of Ferro Chrome and Generation of
Electricity. |
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|
|
Products
: |
Item Code No. Product Description 72.03 Sponge Iron 72.02 Ferro
Chrome 72.07 Mild
Steel |
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Terms
: |
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Selling : |
Credit (60 days) |
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Purchasing : |
Credit (60 days) |
PRODUCTION STATUS
|
Particulars |
Unit
|
Installed Capacity |
|
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At Raigarh |
|
|
|
|
Sponge
Iron |
M.T. |
1370000 |
|
|
Mild
Steel |
M.T. |
2400000 |
|
|
Ferro
Alloys |
M.T. |
36000 |
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|
Oxygen
Gas |
M.CUM |
198930 |
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|
Power |
M.W. |
290 |
|
|
Hot
Metal/Pig Iron |
M.T |
250000 |
|
|
Rail
& Universal Beam Mill |
M.T |
750000 |
|
|
Coke |
M.T |
400000 |
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|
Lime
& Dolomite |
M.T |
108000 |
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At Raipur |
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|
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Machinery
and Castings |
M.T. |
11500 |
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Ingots |
M.T. |
30000 |
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|
CF
Castings |
M.T. |
3000 |
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GENERAL INFORMATION
|
Suppliers
: |
·
Southern
Eastern Coal Fields Limited, Bilaspur ·
TISCO,
Kolkata, West Bengal ·
Naaraayani
Sons, Orissa |
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Customers
: |
·
Sunflag
Iron and Steel Company Limited ·
Aarti
Steels Limited ·
Garg
Furnace Limited ·
Jindal
Iron and Steel Company, Mumbai, Maharashtra ·
Jindal
Strips Limited, Hisar, Haryana ·
Madhya
Pradesh Electricity Board |
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No. of
Employees : |
1366 |
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Bankers
: |
P Block,
Connaught Circus, New Delhi - 110 001
B.O. 7,
Bhikaji Cama Place, New Delhi - 110 066
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Facilities
: |
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Banking Relations : |
Satisfactory
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Auditors
: |
STATUTORY AUDITORS:
S.S. Kothari Mehta & Company Chartered
Accountants 9A, Atma
Ram House, 1, Tolstoy Marg, New Delhi – 110 001 COST AUDITORS:
Ramanath
Iyer & Company Cost
Accountants, 4/4 Singh
Sabha Road, Shakti Nagar, Delhi – 110 007 |
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Associates: |
·
Jindal
Strips Limited ·
Infovergix
Technologies Limited ·
Jindal
Iron and Steel Company Limited ·
Brahamputra
Capital and Finance Limited ·
Nalwa
Sponge Iron Limited ·
Bir
Plantation Private Limited ·
Jindal
Systems Private Limited |
CAPITAL STRUCTURE
Authorised
Capital :
|
No. of
Shares |
Type |
Value |
Amount |
|
40,000,000 |
Equity
Shares |
Rs. 5/- each |
Rs. 200.000 millions |
|
10,000,000 |
Redeemable
Cumulative Preference Shares |
Rs. 100/- each |
Rs. 1000.000 millions |
|
|
Total |
|
Rs. 1200.000 millions |
|
|
|
|
|
Issued,
Subscribed & Paid-up Capital :
|
No. of
Shares |
Type |
Value |
Amount |
|
32,792,268 |
Equity
Shares |
Rs. 5/- each |
Rs. 154.000 millions |
|
2000000 |
13 %
Redeemable Preference Shares |
Rs. 100/- each |
Rs. 10.000 millions |
|
|
Total |
|
Rs. 164.000 Millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED
BALANCE SHEET
|
SOURCES
OF FUNDS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
SHAREHOLDERS FUNDS |
|
|
|
|
1] Share Capital |
164.000 |
164.00 |
163.961 |
|
2] Reserves & Surplus |
18232.600 |
13029.800 |
8397.498 |
NETWORTH
|
18396.600 |
13193.800 |
8561.459 |
|
|
|
|
|
|
LOAN FUNDS |
|
|
|
|
1] Secured Loans |
17807.700 |
11595.100 |
9885.323 |
|
2] Unsecured Loans |
9646.000 |
3363.500 |
374.250 |
|
TOTAL BORROWING |
27453.700 |
14958.600 |
10259.573 |
|
Employees'
Stock Options Outstanding |
50.500 |
-- |
-- |
|
Deferred Tax Liability |
2802.900 |
2142.600 |
1285.844 |
|
|
|
|
|
TOTAL
|
48703.700 |
30295.000 |
20106.876 |
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
27007.200 |
21685.200 |
14309.435 |
|
Capital work-in-progress |
11462.700 |
3457.000 |
2890.252 |
|
|
|
|
|
|
INVESTMENTS |
4303.000 |
333.800 |
496.573 |
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
Inventories |
5686.500 |
2575.500 |
1965.090 |
|
Sundry Debtors |
2995.400 |
1729.100 |
2111.629 |
|
Cash & Bank Balances |
313.000 |
332.900 |
218.983 |
|
Loans & Advances |
5910.100 |
5725.400 |
2180.788 |
|
Total Current Assets |
14905.000 |
10362.900 |
6476.490 |
|
Less : |
|
|
|
|
Current Liabilities |
6260.200 |
3754.200 |
3193.623 |
Provisions
|
2721.400 |
1800.00 |
885.509 |
Total Current Liabilities
|
8981.600 |
5554.200 |
4079.132 |
Net
Current Assets
|
5923.400 |
4808.800 |
2397.358 |
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
7.400 |
10.200 |
13.258 |
|
|
|
|
|
TOTAL
|
48703.700 |
30295.000 |
20106.876 |
PROFIT & LOSS ACCOUNT
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
Sales Turnover [including other income]
|
26177.600 |
24843.600 |
14304.100 |
|
|
|
|
|
Profit/(Loss) Before Tax
|
7278.500 |
6776.200 |
3552.565 |
Provision for Taxation
|
1549.100 |
1619.100 |
497.936 |
Profit/(Loss) After Tax
|
5729.400 |
5157.100 |
3054.629 |
|
|
|
|
|
Export Value
|
3718.500 |
3251.100 |
814.350 |
|
|
|
|
|
Import Value
|
6690.400 |
3072.100 |
1496.576 |
|
|
|
|
|
Total Expenditure
|
18899.100 |
15665.700 |
10751.571 |
QUARTERLY RESULTS
|
Particular |
|
30.06.2006 |
30.09.2006 |
|
Type |
|
1st Qtr |
2nd Qtr |
|
Sales Turnover |
|
6661.900 |
7896.400 |
|
Other Income |
|
32.100 |
32.600 |
|
Total Income |
|
6694.000 |
7929.000 |
|
Total Expenditure |
|
3412.800 |
4811.500 |
|
Operating Profit |
|
3281.200 |
3117.500 |
|
Interest |
|
557.600 |
330.100 |
|
Gross Profit |
|
2723.600 |
2787.400 |
|
Depreciation |
|
621.100 |
642.100 |
|
Tax |
|
237.600 |
239.000 |
|
Reported PAT |
|
1530.900 |
1572.300 |
200606 Quarter 1 –
Gross Sales Includes
Domestic Rs 6496.70 million Exports Rs 930.30 million Expenditure Includes
(Increase)/Decrease in Stock in Trade Rs (664.00) million Consumption of Raw
Materials Rs 1431.00 million Stores & Spares consumed Rs 717.00 million
Power & Fuel Rs 667.90 million Staff Cost Rs 226.50 million Other Expenditure
Rs 1034.40 million Tax Includes Provision for Taxation Rs 237.60 million
Deferred Tax Rs 334.00 million EPS is Basic Status of Investor Complaints for
the quarter ended June 30, 2006 Complaints Pending at the beginning of the
quarter Nil Complaints Received during the quarter 21 Complaints disposed off
during the quarter 21 Complaints unresolved at the end of the quarter Nil 1.
Power plant of 25 MW capacity has been commissioned during the quarter ending
June 30, 2006. Other projects are progressing as per schedule. 2. The Rail
Universal Beam Mill is currently under shut down since June end for upgradation
and is slated to recommence production by September 2006. 3. The above
unaudited results were reviewed by the Audit meeting and taken on record by the
Board of Directors in its meeting held on July 31, 2006. 4. Previous
Quarter/Period figures have been regrouped and reclassified to make them
comparable with figures of the Current Quarter/Period.
200609 Quarter 2 –
EPS is Basic Status of
Investor Complaints for the quarter ended September 30, 2006 Complaints Pending
at the beginning of the quarter Nil Complaints Received during the quarter 41
Complaints disposed off during the quarter 41 Complaints unresolved at the end
of the quarter Nil 1.Sinter Plant with an installed capacity of 2.5 million tpa
has been commissioned in September, 2006. 2.Blast Furnace with an installed
capacity of 1.25 million tpa has also been commissioned in October, 2006. 3.The
Rail & Universal Beam Mill, which was under shutdown for upgradation during
September, 06 quarter, has started production from end-October, 2006. 4.
Consequent upon setting up of the Coke Oven Plant, the Company has started
buying coking coal instead of metallurgical coking coke and is converting
coking coal into metallurgical coking coke for captive consumption in the Blast
Furnace. Accordingly, consumption of coking coal is treated as raw material as
against the previous practice of treating the metallurgical coking coke as an
item of Power & Fuel. 5. The above un-audited results are subject to
limited review by the Auditors of the Company, the same have been reviewed by
the Audit Committee and have been taken on record by the Board in their meeting
held on October 30, 2006. 6. Previous Quarter / Period figures have been
regrouped and reclassified to make them comparable with the figures of the
current Quarter/Period.
KEY
RATIOS
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
Debt-Equity Ratio |
1.34 |
1.16 |
1.33 |
|
Long Term Debt-Equity Ratio |
1.19 |
1.06 |
1.20 |
|
Current Ratio |
1.03 |
1.10 |
1.03 |
|
TURNOVER RATIOS |
|
|
|
|
Fixed Assets |
1.00 |
1.16 |
1.04 |
|
Inventory |
6.97 |
10.78 |
9.34 |
|
Debtors |
12.18 |
12.75 |
7.41 |
|
Interest Cover Ratio |
8.12 |
8.73 |
5.28 |
|
Operating Profit Margin(%) |
36.46 |
37.49 |
39.07 |
|
Profit Before Interest And Tax Margin(%) |
28.84 |
31.26 |
31.44 |
|
Cash Profit Margin(%) |
27.53 |
27.29 |
29.55 |
|
Adjusted Net Profit Margin(%) |
19.91 |
21.07 |
21.92 |
|
Return On Capital Employed(%) |
22.43 |
32.60 |
26.17 |
|
Return On Net Worth(%) |
36.30 |
47.45 |
42.76 |
STOCK PRICES
|
Face Value |
Rs. 10/- |
|
High |
Rs. 2140.00/- |
|
Low |
Rs. 2085.00/- |
LOCAL AGENCY FURTHER INFORMATION
The company has ISO 9002 certifications for its plants at
Raigarh. The Raigarh and Raipur
Divisions are being managed by Mr. Naveen Jindal.
The company’s fixed assets of important value include land
(freehold and leasehold), live stock, buildings, plant & machinery,
electrical installation, furniture & fixture and vehicles
History
Persuant to a scheme of arrangement, Raigarh and Raipur
Divisions of Jindal Strips Limited have been hived off into subject company
with effect from 2nd April, 1998.
Jindal Strips was restructured and the Raigarh and Raipur
divisions of the company were hived off to give birth to the company.
From being the Asia's largest and the world's second largest
coal based Sponge Iron Plant with a capacity of 500000 MTPA, it has now been
expanded to 650000 MTPA by addition of a 6th Kiln to become the
world's largest coal based Sponge Iron Plant.
The second core strength of the company is Power. From the
captive power generation capacity of 28 MW in 1995-96, the present generating
capacity is 95 MW. The company is presently generating approximately 75 MW
power out of which about 30 MW power is being supplied to Chhatisgarh
Electricity Board on regular basis. It uses hot gases (generated during
manufacture of sponge iron), coal washery rejects, char and coal fines for
generation of power and this makes the operations highly economical and
environment friendly. The captive power plant capacity is being further
expanded by 110 MW. The company also has facility to manufacture Mild Steel
Slabs and Ferro Chrome. The company has gone in for backward integration by
acquiring Iron Ore Mines at Tensa, Orissa and Coal Mines at Gare Coal fields,
Raigarh, Chattisgarh.
It is also increasing its power generation capacity and
proposes to set up a rail and universal beam mill that would manufacture high
quality, high value rails for Indian Railways with a production capacity of
550000 TPA at its existing plant at Raigarh, Chhattisgarh at a cost of Rs. 4000
millions.
It stabilised the Steel Melting Shop after a gap of 2 years
in the fiscal 2001. During the same period, the Round Caster unit in Raigarh
was commissioned. It is also setting up a Mini Blast Furnace with a capacity of
0.250 millions MT of Hot metal and 2.5 millions MT of Coal Washery to reduce
the variable cost.
During February, 2002 at Raigarh the 120 Mtr Rail &
Universal Beam Mill project was commenced with a production capacity of 550,000
MT per annum of rails, H beams, columns and sheet piles. The total cost of the
project was Rs.4000.00 millions. In August, 2002 the Coal Washery Plant with
annual capacity of 2.5 million was commissioned. The company has started the 55
MW power proejct at Raigarh in September, 2002. The estimated outlay for the
project is Rs.2070.00 millions and the project was expected to commission by
September,2004. After completion of the project the total enhanced capacity
will be 250 MW.
The company has plans to expand the capacity of Sponge Iron by setting up
additional four kilns each of 1.65 lac MT capacity at Raigarh. The estimated
outlay for the project will be Rs. 2000 millions and the project work is being
taken up in phased manner. The Phase I and Phase II will be completed by March
2005 and September, 2005 respectively. Since the Sponge Iron Plant will
generate flue gases, the company propose to utilize the flue gases by way of
setting up 2 power plants of 25 MW each at a cost of Rs. 1500 millions. After
installation the enhanced power generation capacity will be 50 MW. Out of the 2
power plants one 25 MW will be set up by March,2005 and the another will be by
September,2005.
Jindal Strips was
restructured and the Raigarh and Raipur divisions of the company were hived off
to give birth to Jindal Steel & Power Limited.
From being the Asia's largest and the world's second largest coal based Sponge
Iron Plant with a capacity of 5,00,000 MTPA, it has now been expanded to
6,50,000 MTPA by addition of a 6th Kiln to become the world's largest coal
based Sponge Iron Plant.
The second core strength of the company is Power. From the captive power
generation capacity of 28 MW in 1995-96, the present generating capacity is 95
MW. The company is presently generating approx. 75 MW power out of which about
30 MW power is being supplied to Chhattisgarh Electricity Board on regular
basis. It uses hot gases (generated during manufacture of sponge iron), coal
washery rejects, char and coal fines for generation of power and this makes the
operations highly economical and environment friendly. The captive power plant
capacity is being further expanded by 110 MW. The company also has the facility
to manufacture Mild Steel Slabs and Ferro Chrome. The company has gone in for
backward integration by acquiring Iron Ore Mines at Tensa, Orissa and Coal
Mines at Gare Coal fields, Raigarh, Chhattisgarh.
During February,2002 at Raigarh the 120 Mtr Rail & Universal Beam Mill
project was commenced with a production capacity of 550,000 MT per annum of
rails,H beams,columns and sheet piles. The total cost of the project was
Rs.4000 Millions. In august,2002 the Coal Washery Plant with annual capacity of
2.5 million was commissioned. The company has started the 55 MW power proejct
at Raigarh in September,2002. The estimated outlay for the project is Rs.2070
Million s and the project is expected to commission by September,2004. After
completion of the project the total enhanced capacity will be 250 MW.
The company is proposed to expand the capacity of Sponge Iron by setting up
additional four kilns each of 1.65 lac MT capacity at Raigarh. The estimated
outlay for the project will be Rs.2000 Million s and the project work is being
taken up in phased manner. The Phase I and Phase II will be completed by March
2005 and September,2005 respectively. Since the Spong Iron Plant will generate
flue gases,the company propose to utilize the flue gases by way of setting up 2
power plants of 25 MW each at a cost of Rs.1500 Million. After installtion the
enhanced power generation capacity will be 50 MW. Out of the 2 power plants one
25 MW will be set up by March,2005 and the another will be by September,2005.
OPERATIONAL REVIEW :
Operational Review During the year, the Company has achieved an aggregate
income of Rs.2,6177.6 Millions registering an increase of about 15% over the
previous year. Profit before tax has increased to Rs.7278.5 Millions from
previous year's Rs.6777.6 Millions registering a increase of 7%. Profit after
tax has increased to Rs.5729.4 Millions from previous year's Rs. 5157.0 Millions
representing an increase of 11%. The Reserves and Surplus have increased to
Rs.18232.6 Millions.
Sponge Iron :
The Company has
produced 10,17,746 MT of Sponge Iron in the year under report as against last
years production of 6,92,682 MT. All Kilns operated during the year without any
major breakdown.
Steel
:
The
production of steel products during the year under report as compared to last
year is given below:-
|
|
Production in MT |
|
Finished
Steel Products |
287389 |
|
Semi
Steel Products |
524369 |
Ferro
Chrome
The Company has produced 32,452 MT
of HC Ferro Chrome during the year as against 35,656 MT in the previous
year.
Power
The Company has increased generation of power to 2,225 million Kwh during the
year as against1,898 million Kwh of the last year registering an increase of
17.23%. Additional 25 MW capacity power plant was commissioned during the
year. 3
Raipur Unit
Raipur Unit produced 779 MT of MS
ingots,1,256 MT of casting and has done machining of 2,501 MT as against last
year's figures of 1,196 MT,1,912 MT and 9,433 MT respectively.
Mining
The production of Calibrated Iron Ore at captive mine at Tensa in Orissa was
5.04 lac MT as against last years' production of 4.69 lac MT. The Company has
sold 29,55,818.15 MT of Iron Ore Fines / Lumps in the market, out of which
15,09,327 MT of iron ores fines were exported. The Coal mining operations in
Captive Coal Mine in Mand - Raigarh area are running smoothly.
FUTURE OUTLOOK :
The year under review witnessed constant pressure on price of sponge iron and
steel products. However, from the beginning of the current year, prices of
sponge iron and steel started rising on the back of firm demand. Iron Ore
prices are expected to remain firm in the current year. Steel demand is rising
in the country and the same is expected to rise in future years due to renewed
emphasis of the Government on the infrastructure development. The enhanced
production capacities will help in meeting additional demand in the
market.
Government of India is accelerating pace of Power sector reforms and
encouraging setting up of new power generation facilities to tide over the
shortfall. A subsidiary of the Company, Jindal Power Limited, is implementing
1000 MW capacity power plant at Raigarh in the State of Chhattisgarh and the
same is expected to be commissioned in financial year 2007-08. The present
power generation capacity of the Company is 290 MW which will increase to 340
MW after commissioning of another two units of 25 MW each by September, 2006.
The management perceives a great business opportunity in Power sector and is
therefore, increasing its presence in power sector. 3
Business Review
The year under report has witnessed a turnaround in overall economy of the
country. Manufacturing, Service, Trading and allied sectors of economy are
reporting excellent performance. Foreign capital and enterprise are increasing
their participation. Despite strong resistance from Left political parties, the
Central Government is pushing forward economic reforms whether it be Insurance,
Aviation, Retail trade, Banking, Pension Funds or Infrastructure under dynamic
leadership of Prime Minister Dr. Manmohan Singh. Financial Institutions and
Banks are extending credit facilities on competitive terms. Information
Technology, Information Technology enabled services and Business Process
Outsourcing industry has created tremendous job opportunities increasing
purchasing power of younger population. Indian entrepreneurs are either
acquiring or setting up business interests abroad. Foreign exchange resources
are at its peak and Foreign Direct Investment is increasing day by day.
Demand and production of Iron & Steel has increased in 2005-06 but prices
remained by and large subdued putting pressure on profit margins. Steel
industry has slowly come out of this temporary trough in price realizations and
prices are now showing marked improvement. Demand for iron and steel products
is bound to increase in coming years due to strong emphasis of the Government
on development of infrastructure in the country. Asian countries are trying to
form a type of Free Trade Zone for free flow of trade among Asian countries.
This will immensely benefit Indian trade and industry. Foreign steel behemoths,
like, Mittal Steel and POSCO of South Korea have announced plans to set up
steel making facilities in India which shows that there is a great potential
for steel industry in this country.
Performance Review of the Company
The overall operational performance of the Company has been satisfactory. The
plants have operated optimally and there were no major break downs or
shutdowns. Product wise performance, in brief, is given below:-
Sponge Iron
The production of Sponge Iron was 10,17,746 MT as compared to 6,92,682 MT in
the last year registering an increase of 47%. The increase in production is
attributable to working of 4 additional rotary kilns commissioned last year.
The Company sold 6,20,327 MTs in the open market, and 3,66,937 MT of sponge
iron was captively consumed for steel making.
Ferro Chrome
The production of Ferro Chrome was 32,452 MT as compared to
35,656 MT last year. The loss of production was due to problems in procurement
of chrome ore.
Steel
The production of finished steel products and semi steel products has increased
to 8,11,758 MT as against last year's production of 5,97,504 MT registering a
growth of 36%.
Power
2,225 million Kwh of power were generated as against 1,898 million Kwh in the
last year registering an increase of 17%.
Minning
The production of Calibrated Iron Ore was 5.04 lac MTs as against last year's
4.69 lac MTs. 1.51 million MT of Iron Ore fines were exported during the
year.
Opportunities and Threats
Opportunities abound in growing economies and opening of economy in India has
created opportunities for Indian enterprise to move beyond national boundaries
as well to create productive assets. Presently, the Company is not
contemplating diversification but consolidating its gains out of creating
additional production capacities. Sponge Iron and Steel making capacity has
increased to 1.37 million TPA and 2.4 million million TPA per annum
respectively. The Company has capacity to produce a range of steel products,
such as, parallel flange Beams and Columns, Crane rails & track rails, Beam
Blanks, MS rounds, Billets, Blooms, which are in great demand and also realise
better prices. The National Steel Policy has set a two phase target for
increasing steel production in the country to 60 million MT by 2010 and to 100
million MT by 2018 and the Company is gearing itself to increase its market
share.
The Company has already commissioned Steel Melting Shop III of 1.25 million
TPA, Billet caster of 0.8 million TPA, one module of Coke Oven of 0.4 million
TPA, one Lime and Dolomite Kiln of 0.01 million TPA, Oxygen plant of 760 TPD
and 25 MW Power plant.
Blast Furnace of 1.25 million TPA, Sinter plant of 2.5 million TPA, one more
module of Coke Oven of 0.4 million TPA, Plate Mill of 1.0 million TPA, two
units of 25 MW each power plant and two kilns of Lime and Dolomite of 0.325
million TPA each are at an advanced stage of implementation.
Capacity to produce various steel products will ultimately make the Company
resilient to adverse market forces. The Company has set an ambitious target of
becoming an important player in steel industry in the country by 2010 and for
reaching that coveted position, two integrated steel plants of 6 million TPA
and 5 million TPA will be set up in the state of Orissa and Jharkhand for which
memorandum of understanding (MOU) has been signed with the state government of
Orissa and Jharkhand.
Competition in steel industry in escalating and technological changes will spur
or drag the forward march of individual units in steel industry. Supply side
could also be an issue in next few years because of increase in production
capacity by steel industry in India and expression of interest by foreign
companies to set up new steel making units. Total finished steel making
capacity in India is about 40 million tons per year and about 20 million tons
are slated to be added by the year 2010. The finished steel consumption is
expected to grow in India by about 8%, driven mainly by Automobile,
Construction, Capital goods, Pipes and Tubes sectors.
Global crude steel production crossed one billion tons in 2005. The requirement
is expected to be about 1040 million tons in 2007 and about 1413 million tons
in 2015. However, coming years are also going to witness substantial additions
particularly in the Asian regions. The Company's thrust on improving
productivity and reducing cost of production will, in such a scenario, help in
forging ahead in a globally competitive environment.
The greatest impediment to the ongoing march of economy is poor infrastructural
facilities in the country. There is a huge gap between demand and supply of
power. The roads are congested and unworthy of high speed heavy vehicles.
Handling of material / goods at ports takes long time. Airport modernization is
yet to begin and cannot manage increasing number of flights and cargo.
Maintaining of delivery schedules has become very difficult. Exports suffer
increasingly due to delay in transportation of goods from ports. Central
Government has taken definitive steps for upgradation of existing
infrastructural facilities with participation of private sector which will show
results in the near future.
Outlook
The present production capacity of the Company is as under:
Sponge Iron : 1.37 million TPASteel Melting Shop : 2.40
million TPARail & Universal Beam Mill : 0.75 million TPACoke oven : 0.4
million TPACoal Washery : 6.0 million TPAPower : 290 MW
Besides, setting up of following projects will create production capacities as
mentioned below:
Blast furnace : 1.25 million TPASinter plant : 2.5 million TPAPlate Mill : 1.0
million TPACoke Oven : 0.4 million TPAPower Plant : 50 MW
The basic aim of the Company is to be able to produce Sponge Iron and steel
products as per market requirements and be able to manage market trends to it's
advantage.
Power is vital input to producing Steel products. The Company has sufficient
power generation capacity which will not only meet captive requirement but will
meet our agreed supply commitment to the Government of Chhattisgarh. As the
power is generated from flue gases of Coke Oven / rotary kilns and washery
middlings, the cost of generation is low. 3
Sufficient quantity of coal is made available by the captive coal mines. The
Company has been allocated coal block Gare IV/6 which will meet requirement of
additional 4 rotary kilns commissioned last year. With a view to ensure
adequate availability of iron ore and coal for proposed steel plants to be set
up in the state of Orissa and Jharkhand applications have been submitted for
grant of mining leases for Iron Ore and Coal to the concerned authorities which
are under active consideration. Coal washery with a capacity of 6.0 million TPA
is providing quality coal for sponge iron and steel making. The Company is
making concerted efforts for setting up of integrated steel plants in the state
of Orissa and Jharkhand.
Jindal Power Limited, a subsidiary of the Company, is setting up 1,000 MW power
plant in Raigarh (Chhattisgarh) which will be commissioned in phased manner
from June, 2007 to March 2008. India is facing acute shortage of power and
supply of energy is in great demand. Therefore, selling of power will not face
any problem. However, arrangements for sale of power are being worked out by
JPL with State Electricity Boards and other agencies.
Financial Performance
The Company has improved its performance in the year 2005-06 compared to the
year 2004-05. The total income has gone up from Rs.22710.3 Millions to Rs.26177.6 Millions and net profit after tax from
Rs.5157 Millions to Rs.5729.4 Millions. The cash profit has also increased
from Rs.7657.6 Millions to Rs.8584.1 Millions. Earning per share has also
increased from Rs.167.48 in the year 2004-05 to Rs.186.07 in the year 2005-06.
The reserves are also steadily growing and after making provision of Rs.2802.9 Millions
for deferred tax liability, stand at Rs.18232.6 Millions on 31st March, 2006. The Company's
gross asset stand at Rs.438.932 Millions and are adequately insured against
risks.
PRESS RELEASES
Jindal Steel & Power Wins The Tender For El Mutun Mines In Bolivia
PRESS RELEASE, Friday, June 02, 2006, New Delhi: Press Release
Jindal
Steel & Power Limited headed by Mr. Naveen Jindal, part of USD 4Bn OP
Jindal group today announced that it has been granted the mining rights for 20
Bn tonnes of iron ore reserves from El Mutun iron ore Mines, Bolivia, which is
one of the largest iron ore reserves in the world. The company plans to invest
USD 2.3 bn over the next 8 years in creating an integrated steel plant, which
would be capable of producing 1.7MTPA of long products of steel, and will also
have DRI (Direct Reduced Iron /Sponge iron) Plant of capacity 6MTPA and a
pellet plant of capacity 10MTPA. The company will also be setting up supporting
infrastructure for the proposed plant including a 400 MW Power Plant. The deal
was signed after extensive negotiations between the Bolivian Government and a
senior team from JSPL led by Mr. Vikrant Gujral Vice Chairman & CEO, and
Mr. Sushil Maroo, Director Finance.
JSPL emerged as the only company which met the qualifying criteria set by the
Bolivian Government for this international tender. JSPL in line with its
philosophy of creating value for its stakeholders and local communities in
which it operates will be setting up an ultra modern, environmentally friendly
steel plant in Bolivia.
As regards the company’s presence in India, it operates the world's largest
coal-based Sponge Iron Plant while pioneering a revolution in self-sufficiency.
The company is operating captive coal and iron ore mine. By producing
economical and efficient steel and power the company is passing the benefits to
the consumer. In this endeavor, the company is actively involved in developing
basic infrastructure.
JSPL is dedicated to protecting the environment by adopting eco-friendly
processes and activities. JSPL is an ISO 14001 certified Company, committed to
environment protection as an integral part of their business activities. JSPL
has been showered with awards praising almost all its operational aspects. An
ISO-9002 certified company; JSPL is committed to conducting business safely,
ethically and in an environmentally responsible manner that protects the
natural resources and environment.
Bolivian Breakthrough
Business Standard, July 11, 2006 Bhupesh Bhandari / New
Delhi
LUNCH WITH BS: Naveen Jindal
Jindal Steel & Power's executive VC and MD on bagging
the biggest iron ore mines deal in Bolivia. Naveen Jindal is not a rock star.
Neither is he a post-modern guru, nor a soccer sensation. Still, on June 2, it
was because of the 36-year-old youngest son of the late O P Jindal that the
people in faraway Bolivia were dancing and jiving on the streets. News agencies
were full of reports of the celebrations that went on till late in the day at
La Paz and other cities of Bolivia, writes Business Standard.
Jindal’s flagship, Jindal Steel & Power, had been
selected by the Bolivian government to develop the coveted El Mutun iron ore
mines in the country. Jindal, who is the executive vice-chairman and managing
director of the company, had, in turn, announced that he would invest $2.3
billion in developing the mines and in a brand new sponge iron and steel plant.
This is the biggest foreign investment in the country and will provide direct
employment to 2,000 Bolivians and indirect employment to another 10,000. The
merrymaking in Bolivia does make sense.
A month later, any talk of the Bolivian acquisition is
enough to bring a satisfied smile on his youthful face. “I am learning Spanish
these days. I always liked the language,” he says, adding, on a more serious note:
“It is the only place on earth where you have iron ore as well as gas in
abundance.”
We are at TK’s, the oriental grill at the Hyatt Regency, seated at the
Tapenyaki counter. Jindal has ordered an appetiser of green salad and I have
asked for Miso soup. The deal gives Jindal control over 20 billion tonnes of
iron ore. To put it in perspective, India’s total reserves add up to around 13
billion tonnes. There were several global players in the race for the mines
that began some two years ago, including L N Mittal. But it was Jindal who
bagged the mines.
La Paz had attached stringent conditions to the bid. But, in
the last two months of negotiations, Jindal’s team was able to dilute many of
these conditions. Jindal hopes to begin work on the mines early next year. The
logistical challenges, Jindal admits, are strong. The mines are 800 km from the
nearest port; Jindal plans to evacuate the steel and sponge iron made at the
pithead plants through the river Paraguay. The investment proposed by Jindal in
Bolivia is almost four times of his 2005-06 turnover of Rs 2,6170 Million ($580
million). Not to forget, he has made an investment commitment of more than Rs
100000 Million in Chhatisgarh, lined up a six million tonne steel plant in
Orissa that could cost around Rs 135000 Million and signed a MoU with the
Jharkhand government for another five million tonne plant at a cost of Rs
115000 Million. Not a small amount of money.
“How will you find the money,” I ask Jindal as he deftly
balances the salad with chopsticks. (He has asked for a knife and fork as well,
in case his fingers get tired.) “Just like L N Mital does,” says Jindal,
adding: “I am fully committed to the Orissa plant. And there are enough people
who would like to invest through debt in the Bolivian venture.” He might also
look at listing the venture at a later date, Jindal says.
As they speak, the cook, wearing a karate shirt and a
headband, starts doing our orders: assorted vegetables and a generous helping
of cottage cheese for Jindal and salmon for me. While Jindal watches the salmon
change colour from pink to a golden brown, my mind races back to a few years
ago when Jindal used to say he wasn’t interested in expanding outside India as
the country offered enough opportunities for growth. The traces of Swadeshi
were unmistakable. “Mindsets keep changing,” says Jindal. “But isn’t there a
scare that the Areclor-Mittal combine may devour more steel companies,” I
probe. “Yes, there is. But I think it is good for the industry. In case of a
downside, the larger players will scale down output to hold prices,” says he.
Apart from a steel baron, Jindal is also a Parliamentarian,
an ace shooter (he will be leaving for Croatia shortly as a part of the Indian
contingent), a polo player and a public crusader for the tricolor (let’s see if
he hoists the national flag at his factory gate in Bolivia). The various
avatars leave him with little time for himself. “I haven’t been able to take a
shower since last evening,” says Jindal. About time he wore one of the other hats.
A day before our lunch, the DMK had arm-twisted New Delhi to give up its
disinvestment programme. “Hasn’t it sullied the image of the party,” I ask the
Lok Sabha MP from Kurukshetra. He dismisses the suggestion with a shake of his
head: “What was there to give up? It happens everywhere. Like in business,
plans keep changing.”
How about a nice trap for him? “The Congress is pressing
hard for job reservations in the private sector, while industry is resisting
it. Where do you stand?,” I ask him. “I think industry should be consulted
before such a step is taken,” the keep-everybody-happy line is delivered to
perfection. But he did create a flutter after getting the Congress ticket in
the last general elections when he praised the then prime minister, Atal Bihari
Vajpayee. “I see it differently. Just because I am contesting somebody in an
elections, doesn’t mean that I shouldn’t speak well of him,” says Jindal.
Our lunch is over. Jindal decides to brave the Delhi sun and
walk to his office next door, accompanies by an armed guard from Haryana
Police.
Jspl Net Up 2.63 Per Cent At Rs 1510 Millions
Business Standard, June 08, 2006 Our Corporate Bureau /
New Delhi
Steel manufacturer Jindal Steel and Power Limited reported
2.63 per cent rise in net profit at Rs 1506.6 Millions for the
quarter ended March 31, 2006, compared with Rs 1467 Millions in the year-ago quarter. Total income grew
by 7.03 per cent to Rs 6804.8 Millions as against Rs 6326.7 Millions ,
according to a company release.
The board has recommended a final dividend of Rs 10 per
equity share on shares of Rs 5 each (200 per cent). It had also announced an
interim dividend of Rs 5 per share on shares of Rs 5 each.
For the full year, the company’s net profit stood at Rs
5729.4 Millions
compared with Rs 5157 Millions in the previous financial year. Total income rose to Rs 2,6177.6 Millions from Rs
22821.5 Millions
for the previous fiscal.
The group’s net profit for 2005-06 stood at Rs 5829.3 Millions , while
total income at Rs 26176.4 Millions . The company has done
better than both Tata Steel and SAIL in the last quarter of 2005-06 with both
the steel majors reporting decline in net profit.
Jindal Steel Q4 Net Up 2.69 Pc, To Pay Rs 10
Hindu Business Line, June 08, 2006 Our Bureau, New
Delhi
Jindal Steel and Power Limited (JSPL) today announced a net
profit of Rs 5729.4 Millions for 2005-06, posting an
increase of 11 per cent over Rs 5157.0 Million
in 2004-05. Net sales grew by 14 per cent to Rs 25902.5 Million .
For the fourth quarter ended March 2006, the company posted
2.69 per cent increase in net profit to Rs 1506.6 Million . Total income grew
7.55 per cent to Rs 6804.8 Million.
The company has also announced a final dividend of 200 per
cent amounting to Rs 10 per equity share on shares of Rs 5 each. Along with the
interim dividend of 100 per cent, the total dividend stands at 300 per cent for
the fiscal.
On Wednesday, the JSPL scrip closed at Rs 1,506.90 on the
BSE, down Rs 183.25 or 10.84 per cent.
Jindal Steel Gets Mining Rights In Bolivia
Indian Express, June 03, 2006 ENS ECONOMIC BUREAU, NEW
DELHI
Bolivia has awarded Jindal Steel and Power the development
rights to a massive iron mine in the eastern town of Puerto Suarez next to the
Brazilian border. The company will invest $2.3 billion in the production of
iron and steel plates at the Mutun mine.
According to ministry of external affairs (MEA) officials,
this is the biggest project ever awarded to an Indian company in South America.
The announcement has come a month after President Evo Morales nationalised
Bolivia’s natural gas industry, and the Mutun bid was seen as a test of how the
government would handle mining investments.
The mine is estimated to hold 40 billion metric tons (44
billion tons) of iron ore. Government officials say the deal could earn the
poor Andean nation more than $250 million a year in exports and employ over
1,800 people. Bidding on the contract has dragged out through decades of
delays, the most recent of which came last December when Bolivia’s outgoing government
left the final decision to Morales’ new leftist government. The Morales
administration required bidders to not only extract the iron but also
industrialise its production into steel using Bolivia’s natural gas.
Jindal became the lone bidder after the government
disqualified an offer by Netherlands-based Mittal Steel Co. Details of the
contract will be finalised in the next 60 days.
Jindal Steel Wins Rights In Bolivia To Invest $2.3b
Times of India, June 03, 2006 New Delhi:
Here’s another example of the growing global might of
Corporate India. Jindal Steel & Power Limited on Friday won the development
rights for 20 billion tones of iron ore reserves in Bolivia and announced plans
to invest $2.3 billion over the next 10 years for mining and setting up a steel
plant there.
The award to Jindal Steel, incidentally comes just a week
after the Bolivian government ruled out a second bid for the project by Mittal
Steel on the grounds that it did not meet the demands of the tender.
Jindal Steel MD Naveen Jindal said the firm has been awarded
rights to develop half of El Mutun Mine, a site believed to contain one of the
world’s biggest iron-ore deposites. “We would invest $1.5 billion in the next
five years and $ 2.3 billion in the next 10 years,” Jindal said. This will be
the biggest-ever investment in a single project in Bolivian history.
Jindal
Steel & Power Wins The Tender For El Mutun Mines In Bolivia
PRESS RELEASE, Friday, June 02, 2006, New Delhi: Press Release
Jindal Steel & Power Limited headed by Mr. Naveen Jindal, part of USD 4Bn
OP Jindal group today announced that it has been granted the mining rights for
20 Bn tonnes of iron ore reserves from El Mutun iron ore Mines, Bolivia, which
is one of the largest iron ore reserves in the world. The company plans to
invest USD 2.3 bn over the next 8 years in creating an integrated steel plant,
which would be capable of producing 1.7MTPA of long products of steel, and will
also have DRI (Direct Reduced Iron /Sponge iron) Plant of capacity 6MTPA and a
pellet plant of capacity 10MTPA. The company will also be setting up supporting
infrastructure for the proposed plant including a 400 MW Power Plant. The deal
was signed after extensive negotiations between the Bolivian Government and a
senior team from JSPL led by Mr. Vikrant Gujral Vice Chairman & CEO, and
Mr. Sushil Maroo, Director Finance.
JSPL emerged as the only company which met the qualifying criteria set by the
Bolivian Government for this international tender. JSPL in line with its
philosophy of creating value for its stakeholders and local communities in
which it operates will be setting up an ultra modern, environmentally friendly
steel plant in Bolivia.
As regards the company’s presence in India, it operates the world's largest
coal-based Sponge Iron Plant while pioneering a revolution in self-sufficiency.
The company is operating captive coal and iron ore mine. By producing
economical and efficient steel and power the company is passing the benefits to
the consumer. In this endeavor, the company is actively involved in developing
basic infrastructure.
JSPL is dedicated to protecting the environment by adopting eco-friendly
processes and activities. JSPL is an ISO 14001 certified Company, committed to
environment protection as an integral part of their business activities. JSPL
has been showered with awards praising almost all its operational aspects. An
ISO-9002 certified company; JSPL is committed to conducting business safely,
ethically and in an environmentally responsible manner that protects the
natural resources and environment.
Rise
In Sales, Production Buoys Jspl Profit 8 Percent
Business Standard, October 31, 2006
BS Reporter / New Delhi
The Naveen Jindal-controlled Jindal Steel and Power (JSPL), a part of the $4
billion Jindal group, reported 8 per cent rise in net profit at Rs 1572.3 Million for the second quarter
ended September 2006 compared with Rs 1455.3 Million for the corresponding
quarter of the previous financial year on the back of increased production and
sales.
The company’s net sales rose 23 per cent to Rs 7896.4 Million for the quarter under
review from Rs 6424.8 Million for the corresponding quarter of 2005-06. The
company attributed the fall in profitability vis-a-vis turnover to the fact
that its profitable rail and universal beam mill was shut down during the
entire September quarter.
JSPL’s exports also shot up 54 per cent to Rs 1703.4 Million in the second quarter
of 2006-07 from Rs 1108.1 Million for the same quarter last year.
During the quarter, JSPL commissioned a sinter plant with a capacity of 2.5
million tonne at its plant at Raigarh in September. It also commissioned a
blast furnace with an installed capacity of 1.25 million tonne in October.
CMT REPORT
[Corruption, Money laundering & Terrorism]
The Public Notice information has been collected from
various sources including but not limited to: The Courts, India Prisons
Service, Interpol, etc.
1] INFORMATION ON DESIGNATED PARTY
No
exist designating subject or any of its beneficial owners, controlling
shareholders or senior officers as terrorist or terrorist organization or whom
notice had been received that all financial transactions involving their assets
have been blocked or convicted, found guilty or against whom a judgement or
order had been entered in a proceedings for violating money-laundering,
anti-corruption or bribery or international economic or anti-terrorism sanction
laws or whose assets were seized, blocked, frozen or ordered forfeited for
violation of money laundering or international anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that
subject is or was the subject of any formal or informal allegations,
prosecutions or other official proceeding for making any prohibited payments or
other improper payments to government officials for engaging in prohibited
transactions or with designated parties.
3] Asset Declaration :
No
records exist to suggest that the property or assets of the subject are derived
from criminal conduct or a prohibited transaction.
4] Record on Financial Crime :
Charges or
conviction registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l Anti-Money
Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No available
information exist that suggest that subject or any of its principals have been
formally charged or convicted by a competent governmental authority for any
financial crime or under any formal investigation by a competent government
authority for any violation of anti-corruption laws or international anti-money
laundering laws or standard.
8] Affiliation with Government :
No record exists to
suggest that any director or indirect owners, controlling shareholders,
director, officer or employee of the company is a government official or a
family member or close business associate of a Government official.
9] Compensation Package :
Our market survey
revealed that the amount of compensation sought by the subject is fair and
reasonable and comparable to compensation paid to others for similar services.
10] Press Report
:
No press reports / filings exists on the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments
on Corporate Governance to identify management and governance. These factors
often have been predictive and in some cases have created vulnerabilities to
credit deterioration.
Our Governance Assessment focuses principally on the
interactions between a company’s management, its Board of Directors,
Shareholders and other financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local
laws, regulations or policies that prohibit, restrict or otherwise affect the
terms and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.44.87 |
|
UK Pound |
1 |
Rs.85.99 |
|
Euro |
1 |
Rs.58.15 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP
CAPITAL |
1~10 |
8 |
|
OPERATING
SCALE |
1~10 |
8 |
|
FINANCIAL
CONDITION |
|
|
|
--BUSINESS
SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
8 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
8 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT
LINES |
1~10 |
8 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT
POINTS |
|
|
|
--BANK
CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER
ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT
POINTS |
|
|
|
--SOLE
DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT
ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER
MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
67 |
This
score serves as a reference to assess SC’s credit risk and to set the amount of
credit to be extended. It is calculated from a composite of weighted scores
obtained from each of the major sections of this report. The assessed factors
and their relative weights (as indicated through %) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit
history (10%) Market
trend (10%) Operational
size (10%)
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound
financial base with the strongest capability for timely payment of interest
and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working
capital. No caution needed for credit transaction. It has above average (strong)
capability for payment of interest and principal sums |
Large |
|
56-70 |
A |
Financial & operational base
are regarded healthy. General unfavourable factors will not cause fatal
effect. Satisfactory capability for payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered
normal. Capable to meet normal commitments. |
Satisfactory |
|
26-40 |
B |
Unfavourable & favourable
factors carry similar weight in credit consideration. Capability to overcome
financial difficulties seems comparatively below average/normal. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent.
Repayment of interest and principal sums in default or expected to be in
default upon maturity |
Limited with full security |
|
<10 |
C |
Absolute credit risk exists.
Caution needed to be exercised |
Credit not recommended |