MIRA
INFORM REPORT
|
Report Date : |
17.11.2008 |
IDENTIFICATION
DETAILS
|
Name : |
JINDAL STEEL AND
POWER LIMITED |
|
|
|
|
Registered Office : |
O.P. Jindal Marg, Delhi
Road, Hisar-125 005, Haryana |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as on) : |
31.03.2008 |
|
|
|
|
Date of Incorporation : |
28.09.1979 |
|
|
|
|
Com. Reg. No.: |
05-9913 |
|
|
|
|
CIN No.: [Company
Identification No.] |
L27105HR1979PLC009913 |
|
|
|
|
TAN No.: [Tax
Deduction & Collection Account No.] |
JBPJ00181G /
DELJ03437A |
|
|
|
|
Legal Form : |
Public Limited
Liability Company. The company’s
shares are listed on the Stock Exchanges. |
|
|
|
|
Line of Business : |
Manufacturers of Sponge
Iron and Mild Steel Slabs, Mining of Ferro Chrome and Generation of
Electricity. |
RATING &
COMMENTS
|
MIRA’s Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD 190000000 |
|
|
|
|
Status : |
Satisfactory |
|
|
|
|
Payment Behaviour : |
Slow |
|
|
|
|
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 reported as slow. 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 |
|
Tel. No.: |
91-1662-222471-75
/ 83 |
|
Fax No.: |
91-1662-222476 |
|
E-Mail : |
|
|
Website : |
|
|
Area : |
Owned |
|
Location : |
Industrial Area |
|
|
|
|
Marketing Office : |
·
Jindal Enclave,
Old Standard Mill Compound, Behind Maratha Udyog Bhawan, Prabha Devi Marg,
Mumbai - 400 025, Maharashtra, India Tel. No. 91-22-24328000 Fax. No. 91-22-24238312 E-mail jindal@bom2.vsnl.net.in ·
4C, Century Plaza, 560-562, Anna Salai, Chennai – 600018, Tamilnadu,
India Tel. No. :
91-44-52132134, Fax No. :
91-44-52132334 E-mail : jsplchennai@vsnl.net |
|
|
|
|
Corporate Office : |
Jindal Centre 12,
Bhikaiji Cama Place, New Delhi - 110 066, India |
|
Tel. No.: |
91-11-26188345-60 |
|
Fax No.: |
91-11-26161271/26170691 |
|
E-Mail : |
|
|
|
|
|
Factory : |
·
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
·
13 KM Stone,
G.E. Road, Mandir Hasaud, Raipur - 492001, Chhattisgarh, India 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 ·
Gare Coal
Fields, Mand, Raigarh, Chhattisgarh ·
28, Najafgarh
Road, New Delhi 110015, India Tel. No.: 91-11-30589739-41 Fax No.: 91-11-25928677 / 25928118 ·
Plot No.
751, Near Panchpukhi Chhaka, Simplipada, Angul – 759 122, Orissa, India ·
Patratu,
District Ranchi, Jharkhand |
|
Area : |
Owned |
|
Location : |
Industrial area |
|
|
|
|
Branches : |
·
41,
Shakespeare Sarani, Room No.2, 3rd Floor, Kolkata - 700 017, West
Bengal ·
66/1, A Ge
Road, Liluah, Howrah, West Bengal ·
Flat 7,
Block A, Phase –1, Datt Arcade, South
Civil Lines, Jabalpur - 482 001, Maharashtra ·
Bhopal,
Madhya Pradesh ·
Bhubaneshwar
·
Orissa
·
Ranchi
·
Angul
|
DIRECTORS
|
Name : |
Ms. Savitri
Jindal |
|
Designation : |
Chairperson |
|
|
|
|
Name : |
Mr. Naveen Jindal
|
|
Designation : |
Executive Vice
Chairman and Managing Director |
|
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. |
|
|
|
|
Name : |
Mr. Vikrant
Gujral |
|
Designation : |
Vice Chairman and
Chief Executive Officer |
|
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 Company 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. |
|
|
|
|
Name : |
Mr. Ratan Jindal |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Suresh Baid |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Rajendra
Singh |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. S.
Ananthakrishnan |
|
Designation : |
Director (Nominee
– IDBI Bank Limited) |
|
|
|
|
Name : |
Mr. Ashok Alladi |
|
Designation : |
Director (Nominee
- ICICI Bank Limited) |
|
|
|
|
Name : |
Mr. Anand Goel |
|
Designation : |
Whole-time
Director |
|
|
|
|
Name : |
Mr. P. S. Rana |
|
Designation : |
Whole Time
Director |
|
|
|
|
Name : |
Mr. A K Purwar |
|
Designation : |
Director |
KEY EXECUTIVES
|
|
|
|
Name : |
Mr. Sushil K.
Maroo |
|
Designation : |
Vice President
(Corporate Finance) |
|
|
|
|
Name : |
Mr. T. K. Sadhu |
|
Designation : |
Company Secretary
|
SHAREHOLDING
PATTERN
(As on 31.03.2008)
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
|
Shareholding of
Promoter and Promoter Group |
|
|
|
Indian |
|
|
|
Individuals/Hindu Undivided Family |
1825760 |
1.19 |
|
Bodies Corporate |
76698855 |
49.82 |
|
Foreign |
|
|
|
Individuals(Non-Resident Individuals) |
104400 |
0.07 |
|
Bodies Corporate i.e. OCBs |
11999600 |
7.79 |
|
Public
Shareholding |
|
|
|
Institutions |
|
|
|
Mutual Funds/UTI |
7450601 |
4.84 |
|
Financial Institutions/Banks |
51930 |
0.03 |
|
Insurance Companies |
8300 |
0.01 |
|
Foreign Institutional Investors |
35177317 |
22.85 |
|
Non-Institutions |
|
|
|
Bodies Corporate |
3617765 |
2.35 |
|
Individual Shareholders holding nominal
Share Capital value upto Rs. 0.100 Million |
14993895 |
9.74 |
|
Any Other
(specify) |
|
|
|
Trust |
75965 |
0.05 |
|
NRI's |
1956507 |
1.26 |
|
OCB's |
100 |
0.00 |
|
Foreign Nationals |
345 |
0.00 |
|
Total
|
153961340 |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturers of
Sponge Iron and Mild Steel Slabs, Mining of Ferro Chrome and Generation of
Electricity. |
|
|
|
|
Products : |
Item Code No. Product Description 72.03 Sponge Iron 72.07 Mild
Steel |
|
|
|
|
Terms : |
|
|
Selling : |
Credit (60 days) |
|
|
|
|
Purchasing : |
Credit (60 days) |
PRODUCTION STATUS
(As on 31.03.2008)
Rs. In millions
|
Particulars |
Unit |
Installed
Capacity |
|
At Raigarh |
|
|
|
Sponge Iron |
M.T. |
1370000 |
|
Mild Steel |
M.T. |
2400000 |
|
Ferro Alloys |
M.T. |
36000 |
|
Power |
M.W. |
333 |
|
Hot Metal/Pig Iron |
M.T |
1500000 |
|
Rail and Universal Beam Mill |
M.T |
750000 |
|
Plate Mill |
M.T |
1000000 |
|
At Raipur |
|
|
|
Machinery and
Castings |
M.T. |
11500 |
|
Ingots |
M.T. |
30000 |
|
CF Castings |
M.T. |
3000 |
Note : Installed capacity is as certified by the
management.
|
Particulars |
Unit |
Production
|
|
Sponge Iron |
M.T. |
1185739 |
|
M S Round |
M.T. |
292275 |
|
H.C. Ferro Crome |
M.T. |
17905 |
|
Power |
Million KWH |
2665 |
|
Hot Metal/Pig Iron |
M.T |
1250636 |
|
Parallel Flange Beam / Columns |
M.T |
434788 |
|
Universal Plate / Coil |
M.T |
239702 |
|
Other Finished Steel Products |
M.T. |
72591 |
|
Other Semi Steel
Products |
M.T. |
1135781 |
|
Machineries |
M.T. |
2135 |
GENERAL
INFORMATION
|
Suppliers : |
·
Southern Eastern Coal Fields
Limited, Bilaspur ·
TISCO, Kolkata, West Bengal ·
Naaraayani Sons, Orissa |
||||||||||||||||||||||||||||||
|
|
|
||||||||||||||||||||||||||||||
|
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 |
||||||||||||||||||||||||||||||
|
|
|
||||||||||||||||||||||||||||||
|
No. of Employees : |
1366 |
||||||||||||||||||||||||||||||
|
|
|
||||||||||||||||||||||||||||||
|
Bankers : |
·
State Bank
of India, P Block, Connaught Circus, New Delhi - 110 001 ·
Punjab
National Bank, B.O. 7, Bhikaji Cama Place, New Delhi - 110 066 ·
State Bank
of Patiala ·
ICICI Bank
Limited ·
Canara Bank ·
Industrial
Development Bank of India ·
Export -
Import Bank of India ·
Jammu and
Kashmir Bank Limited ·
Canara Bank
·
Indian
Overseas Bank ·
Bank of
Bahrain & Kuwait B.S.C ·
Lord Krishna
Bank Limited |
||||||||||||||||||||||||||||||
|
|
|
||||||||||||||||||||||||||||||
|
Facilities : |
Notes From Banks and others Secured by first
pari-passu charge in favour of Banks by way of mortgage of Company’s immovable
properties and hypothecation of moveable assets except those charged in
favour of Company’s Bankers for securing working capital facilities excluding
a)
loans of
Rs.579.200 millions which are secured by exclusive charge on Assets created
under Steel expansion project, b)
loans of
Rs.3750.000 millions which are secured by exclusive chafe on assets created
under Plate Mill project at Raigarh, Chattisgarh c)
Loan of
Rs.2142.800 millions which are secured by exclusive charge on Assets created under
3*25 MW Captive Power Plant d)
Loan of
Rs.Nil which were to be secured by an exclusive charge on the specific assets
purchased by the company in Jharkhand e)
Loan of
Rs.1200.000 millions which are to be secured by exclusive charge on Assets
created under the Plate Mill project at Angul, Orissa f)
Loans of
Rs.500.000 millions which are to be secured by exclusive charge on Assets
created under the DRI project at Angul, Orissa g)
Loans of
Rs.582.100 millions which are secured by a subservient charge on current assets
of the company h)
Loans of
Rs.84.200 millions which is secured by third and residual charge of the fixed
Assets of the Company. The loans from Banks and others include a sum of US $
31.37 Million as foreign currency loans out of which a sum of US & 1.01 Million
is external commercial borrowings. Further loans of
Rs.1121.800 millions are also secured by a personal guarantee given by a
Director of the Company. Others Secured by
hypothecation of the specific assets financed. Working Capital Borrowing Form Banks Secured by
hypothecation by way of first charge on stocks of finished goods, raw
materials, work in progress, stores and spares and book debts, and guaranteed
by Directors and Second charge in respect of other movable and immovable
assets.
|
|
|
|
|
Banking
Relations : |
Satisfactory |
|
|
|
|
Auditors : |
Statutory Auditors
·
S.S. Kothari
Mehta and Company Chartered Accountants Address : 145-149, Tribhuwan Complex, Ishwar Nagar,
Mathura Road, New Delhi – 110 065, India Cost Auditors
·
Ramanath
Iyer and Company Cost Accountants Address : BL-4, (Paschmi) Shalimar Bagh, New Delhi
– 110 088, India |
|
|
|
|
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 ·
Shresht
Mining and Metals Private Limited, incorporated Joint Venture ·
Globeleq
Singapore (Pte) Limited, Singapore |
|
|
|
|
Subsidiary : |
·
Jindal
Power Limited ·
Jindal
Minerals and Metals Africa Limited, Mauritius (JMML) ·
Jindal
Minerals and Metals Africa Congo ·
Jindal
Steel and Power (Mauritius) Limited ·
Trans
Atlantic Trading Limited ·
Jindal
Steel Bolivia SA ·
Chattisgarh
Energy Trading Company Limited (CETCL) |
|
|
|
|
Fellow Subsidiaries : |
·
Jindal
Minerals and Metals Africa Congo SPRL, DPR, a subsidiary of JMMAL ·
Tans
Atlantic Trading Limited, Guernsey, a subsidiary of JSPML ·
PT
Jindal Overseas, Indonesia, a subsidiary of JSPML ·
Vision
Overseas Limited, Mauritius, a subsidiary of JSPML ·
Jubilant
Overseas Limited, Mauritius, a subsidiary of JSPML ·
Affiliate
Overseas Limited, Mauritius, a subsidiary of JSPML ·
Skyhigh
Overseas Limited, Mauritius, a subsidiary of JSPML ·
Harmony
Overseas Limited, Mauritius, a subsidiary of JSPML ·
Worth
Overseas Limited, (WOL), Mauritius, a subsidiary of JSPML ·
Gas
to Liquids International S.A. Bolivia, a subsidiary of WOL |
CAPITAL STRUCTURE
(As on 31.03.2008)
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
200000000 |
Equity Shares |
Rs.1/- each |
Rs.200.000 Millions |
|
10000000 |
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 |
|
153961340 |
Equity Shares |
Rs.1/- each |
Rs.154.000 Millions |
|
|
Shares Forfeited
Account – Preference Shares |
|
Rs.10.000 Millions |
|
|
Total |
|
Rs.164.000 Millions |
·
Out of the above 126122840 equity shares of
Rs.1/- each have been allotted as fully paid up to the erstwhile shareholders
of Jindal Strips Limited pursuant to the scheme of arrangement sanctioned by
the Hon’ble High Court of Punjab and Haryana.
·
Stock option vested in the employees including
those of subsidiary company
· Pursuant to the approval of shareholders in their extraordinary general meeting held on 27.12.2007 face value of each equity share was reduced from Rs.5/- to Re.1/- Consequently, the number of issued, subscribed and paid up Share Capital of the company has changed to 153961340 equity shares of Re.1/- each.
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SHAREHOLDERS
FUNDS |
31.03.2008 |
31.03.2007 |
31.03.2006 |
|
|
1] Share Capital |
164.000 |
164.000 |
164.000 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
37088.600 |
24620.100 |
18232.600 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
37252.600 |
24784.100 |
18396.600 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
17833.900 |
21156.100 |
17807.700 |
|
|
2] Unsecured Loans |
20799.600 |
13921.100 |
9646.000 |
|
|
TOTAL BORROWING |
38633.500 |
35077.200 |
27453.700 |
|
|
Employee’s Stock Options
outstanding |
417.800 |
371.400 |
0.000 |
|
|
Less : Deferred employee compensation expenditure |
(106.600) |
(188.200) |
0.000 |
|
|
DEFERRED TAX LIABILITIES |
4946.700 |
4150.400 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
81144.000 |
64194.900 |
45850.300 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
47358.300 |
41472.800 |
27007.200 |
|
|
Capital work-in-progress |
6604.800 |
9378.400 |
11462.700 |
|
|
|
|
|
|
|
|
INVESTMENT |
10361.900 |
7098.200 |
4303.000 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
9805.600 |
6424.400 |
5686.500 |
|
|
Sundry Debtors |
2873.800 |
3203.100 |
2995.400 |
|
|
Cash & Bank Balances |
5779.100 |
529.700 |
313.000 |
|
|
Other Current Assets |
0.000 |
0.000 |
0.000 |
|
|
Loans & Advances |
14537.200 |
7859.400 |
6063.200 |
|
Total
Current Assets |
32995.700 |
18016.600 |
15058.100 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Current Liabilities |
10388.700 |
7948.700 |
9266.700 |
|
|
Provisions |
5819.400 |
3854.800 |
2721.400 |
|
Total
Current Liabilities |
16208.100 |
11803.500 |
11988.100 |
|
|
Net Current Assets |
16787.600 |
6213.100 |
3070.000 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
31.400 |
32.400 |
7.400 |
|
|
|
|
|
|
|
|
TOTAL |
81144.000 |
64194.900 |
45850.300 |
|
PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2008 |
31.03.2007 |
31.03.2006 |
|
|
Sales Turnover |
54107.500 |
35198.100 |
28774.600 |
|
|
Other Income |
491.200 |
289.700 |
372.500 |
|
|
Total Income |
54598.700 |
35487.800 |
29147.100 |
|
|
|
|
|
|
|
|
Profit/(Loss) Before Tax |
15025.100 |
9448.400 |
7276.500 |
|
|
Provision for Taxation |
2655.500 |
2418.500 |
|
|
|
Profit/(Loss) After Tax |
12369.600 |
7029.900 |
5729.400 |
|
|
|
|
|
|
|
|
Earnings in Foreign Currency : |
6530.100 |
5928.400 |
3718.500 |
|
|
|
|
|
|
|
|
Imports : |
|
|
|
|
|
|
Raw Materials |
6772.200 |
4067.700 |
|
|
|
Stores & Spares |
882.400 |
631.800 |
6690.400 |
|
|
Capital Goods Others |
1889.900 |
3357.700 |
|
|
Total Imports |
9544.500 |
8057.200 |
|
|
|
|
|
|
|
|
|
Expenditures : |
|
|
|
|
|
|
Materials, Manufacturing and Others |
24773.900 |
16099.200 |
0.000 |
|
|
Administrative Expenses |
6746.100 |
4133.100 |
3239.900 |
|
|
Personnel |
1449.900 |
937.000 |
0.000 |
|
|
Raw Material Consumed |
0.000 |
0.000 |
4503.500 |
|
|
Excise Duty |
0.000 |
0.000 |
3129.100 |
|
|
Increase/(Decrease) in Finished Goods |
0.000 |
0.000 |
(1839.800) |
|
|
Manufacturing Expenses |
0.000 |
0.000 |
3945.900 |
|
|
Employee Cost |
0.000 |
0.000 |
728.100 |
|
|
Interest |
2085.900 |
1502.700 |
1022.400 |
|
|
Miscellaneous Expenses |
2.700 |
2.700 |
660.900 |
|
|
Power & Fuel |
0.000 |
0.000 |
4288.900 |
|
|
Depreciation & Amortization |
4515.100 |
3364.700 |
2191.700 |
|
Total Expenditure |
39573.600 |
26039.400 |
21870.600 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2008 |
30.09.2008 |
|
Type |
1st
Quarter |
2nd
Quarter |
|
Sales Turnover |
18953.100 |
22161.200 |
|
Other Income |
74.300 |
149.600 |
|
Total Income |
19027.400 |
22310.800 |
|
Total Expenditure |
11897.600 |
14716.600 |
|
Operating Profit |
7129.800 |
7594.200 |
|
Interest |
474.800 |
562.800 |
|
Gross Profit |
6655.000 |
7031.400 |
|
Depreciation |
1057.100 |
1076.900 |
|
Tax |
1574.900 |
1454.500 |
|
Reported PAT |
4023.000 |
4500.000 |
KEY RATIOS
|
PARTICULARS |
31.03.2008 |
31.03.2007 |
31.03.2006 |
|
Debt-Equity Ratio |
1.19 |
1.45 |
1.34 |
|
Long Term Debt-Equity Ratio |
1.06 |
1.23 |
1.19 |
|
Current Ratio |
1.11 |
0.88 |
1.03 |
|
TURNOVER
RATIOS |
|
|
|
|
Fixed Assets |
1.13 |
0.95 |
1.00 |
|
Inventory |
7.54 |
6.44 |
6.97 |
|
Debtors |
20.13 |
12.58 |
12.18 |
|
Interest Cover Ratio |
7.18 |
6.45 |
8.12 |
|
Operating Profit Margin(%) |
35.92 |
37.29 |
36.46 |
|
Profit Before Interest And Tax
Margin(%) |
28.54 |
28.66 |
28.84 |
|
Cash Profit Margin(%) |
27.61 |
26.65 |
27.53 |
|
Adjusted Net Profit Margin(%) |
20.23 |
18.03 |
19.91 |
|
Return On Capital Employed(%) |
25.72 |
21.15 |
22.43 |
|
Return On Net Worth(%) |
39.89 |
32.58 |
36.30 |
LOCAL AGENCY
FURTHER INFORMATION
HISTORY
Subject, part of the US $ 8 billion Jindal Organisation was came to business
in the year 1979, has business interests in steel production, steel products,
power generation, mining, sponge iron, ferro chrome and heavy machinery.
Subject continuously endeavours to increase the portfolio of the value-added
products. The product mix of the company includes Hot Rolled Parallel Flange
Beams and Columns, Rails, Channels, Plates, Cathode bar and Continuously Cast
Products that includes Billets/Blooms, Beam Blanks, Rounds and Slabs and
Metallics and Ferro Alloy. JSPL is an ISO 9002 and ISO 14001 certified Company.
Excelling the level of steel making, Subject has exceeded the production
capacity of 2.90 MTPA with its plant at Raigarh, Chhattisgarh. The Company has
a 340 MW power generation facility In Raigarh based on waste heat recovery from
rotary kilns, washery rejects and coal fines to meet the captive requirements
as well as supply to the State Electricity Boards of Chhattisgarh. Its captive
Coal Mines at Dongamahua, Chhattisgarh. Since the coal is of very poor grade
and quality it has to be beneficiated. Hence a coal washery with capacity of 6
MTPA to wash 47-48% coal ash to 26% has been commissioned and is operating
successfully. The Iron Ore Mines at Tensa, Orissa, to meet the part requirement
of its Sponge Iron Plant. Accoutered with fully mechanized techniques, it is
currently producing about 555000 MT of sponge grade ore. Subject has worlds
largest coal-based sponge iron manufacturing facility, which uses indigenously
developed rotary kilns and the Ferro chrome, manufacturing of stainless and
special steel requires an important component called Ferro chrome. Ferro chrome
is the result of a continuous smelting of chrome ore, coke, coal and quartz at
the Submerged Arc Furnace (SAF). Finally, the Subject has set up a state-of-the-art
Machinery Division at Raipur, Chhattisgarh, which caters to the in-house
machinery and components requirements of the Raigarh plant and other group
companies, has machinery-manufacturing capacity of 11,500 MT and production
capacity of 30,000 MT of steel ingots and castings.
The Company made foray in to the Power Sector during the year 1995, Jindal
Power Limited (JPL) subsidiary of Subject was started to engage the power
sector. The Steel Melting Shop of the Company was shut down in May of the year
1998 due to the explosion. The Raigarh and Raipur Divisions of Jindal Strips
Limited have been hived off to subject pursuant to the Scheme of Arrangement
during the year 1999. In October of the year 1999 again the Steel Melting Shop
was commissioned, which was shut downed in a year before. Round Caster Unit of
the company sets up in Raigarh has been commissioned in the month of May in the
year 2000 and has started producing Rounds, which import substitution product.
In the same year, Subject has entered into an agreement with Maharashtra
Seamless Limited for selling 50,000 MT of Rounds annually and the company
launched Infovergix Technologies, marking the foray of one more old economy
company into the Infotech sector. During the year 2001, the company has
introduced a new value added product Alloy Steel Rounds, which may suitable for
manufacture of seamless tubes. In the same year, Subject signed a memorandum of
understanding (MOU) with the Chattisgarh government to invest Rs.64000 millions
in various projects in the state over the seven years. A Memorandum of
Understanding was signed with the State Government of Chhattisgarh in May 2001
for various investments in the State in the power and steel sectors.
During the year 2003-04, In addition to manufacturing of value added steel
products, such as, rounds, billets, blooms and slabs, the Company has started
manufacturing Universal beams and structures. The Company signed MOU with
Government of Chhattisgarh in January 07, 2005 and also made another one MoU with
Jharkand Government on July 05, 2005. In the identical year of 2005, Subject
inked agreement with S. African, German Company for coal gasification facility
at its proposed six-million-tonne steel plant in Orissa. A revised Memorandum
of Understanding (MOU) was signed with the state Government of Orissa on
03.11.2005 to increase production capacity of proposed steel plant from 2.00
million TPA to 6.0 million TPA. Bolivia inked one JV deal with the company for
El Mutun development during the year 2006. The Company has signed a Memorandum
of Understanding with the Government of Chhattisgarh on 30.03.2007 for setting
up 2 million TPA Cement plant and 30 MW Power Plant in Raigarh at an estimated
cost of Rs.7200/- millions. The company's Plate Mill of 1.0 million TPA
capacity has been commissioned successfully and commercial production has
started in April 2007. Subject has signed a Memorandum of Understanding with
the Government of Orissa for setting up a 6 Million TPA Integrated Steel Plant
near Kerajang Railway Station in Angul District of State of Orissa at an
estimated cost of Rs.165600/- millions.
Subject set up an industrial Estate over 750 Acre land in distt. Raigarh, 25
industrial units are already in operation, supplying power from capitive power
plant on long-term basis @ Rs. 2.50 per unit. Initiation has been made in
exploration for diamond, gold and associated minerals under reconnaissance
permit (RP) over 2500 sq.km in Jahspur district of Chhattisgarh State. Jindal
Rex Exploration Private Limited has been incorporated under a joint venture
with Rex Diamond Mining Company with the headquarters in Canada and the
operational centre at Belguim. Carrying out reconnaissance and survey for
diamonds in Jahspur Chhattisgarh, in Gumla, Simdega distt in Jharkhand and in
Democratic Republic of Congo. Will be soon starting exploration for diamonds in
Democratic Republic of Congo.
The Company plans for future, it consist of expand the operations and increase
the steel production capacity to 6 MTPA at an additional investment of Rs.80000
millions in Raigarh. Subject is also investing over Rs.135000 millions in
Orissa for a steel plant with capacity of 6 MTPA and power generation of 900
MW. In Jharkhand the company is investing over Rs. 150000 millions for a steel
plant with capacity of 6 MTPA and power generation of 1000 MW. Subject has
taken over Bihar Alloys Limited in Jharkhand and re-constructing the facility
for steel production. And also the company has won the development rights for
20 billion tonnes of iron ore reserves in Bolivia (South America). The company
is planning to invest US $2.1 billion over next 8 years for mining and setting
up an integrated steel plant. This is the largest investment by an Indian
company in Latin America and the largest foreign investment in a single project
so far in Bolivia.
All the expansions and the future course of actions are a testament to the
fact, that at subject, the company working towards a bright future.
OPERATIONAL
REVIEW
During the year, the Company has achieved an aggregate income of Rs.54598.700
millions registering an increase of 54% over the previous year. Profit before
tax has increased to Rs.15025.100 millions from previous year's Rs.9448.400
millions registering an increase of 59%. Profit after tax has increased by 76%
to Rs.12369.600 millions from previous year's Rs.7029.900 millions. Reserves
and Surplus now stand increased to Rs.37544.000 millions.
Sponge Iron
The Company has produced 11,85,739 MT of Sponge Iron in the year under report
as against previous year's production of 11,96,330 MT and achieved capacity
utilization of 86.55%.
Steel
The production of steel products during the year under report as compared to
previous year is given below:
Production in MTs
|
Product |
31.03.2008 |
|
Finished steel products |
734453 |
|
Semi steel products |
1428056 |
Ferro
Chrome
The Company has produced 17,905 MT of HC Ferro Chrome during the year as
against 31,070 MT in the previous year. The production was lower due to shut down
of furnace for a period of three months.
Power
The Company generated 2,665 million Kwh during the year as against 2,668
million Kwh of the previous year.
Raipur Unit
Raipur Unit produced 1,576 MT of MS ingots, 1,352 MT of casting and has done
machining of 2,135 MT as against previous year's figures of 1,207 MT 1,166 MT
and 3,045 MT respectively.
Mining
The production of calibrated Iron Ore at captive mine at Tensa in Orissa was
8.40 lac MT as against previous years production of 6.04 lac MT. The Company
has exported 8.06 lac MT of Iron Ore Fines as against previous years 14.19 lac
MT. The production of coal at captive mine was 59.94 lac MT as against previous
years production of 59.68 lac MT.
STATUS OF PROJECTS
Completed
|
Description |
Capacity |
|
Plate Mill |
1.00 million TPA |
|
Coke Oven |
0.20 million TPA |
R.H. Degasser in SIMS 2, Beam Welding Plant, Producer Gas Plant
and Cut to Length Line in Plate Mill have been commissioned during the year
under report.
Under Implementation
Steel Plant in
Angul, Orissa
The Company is setting up 6.0 million IPA Integrated Steel Plant and 1080 MW
power plant at Angul in the state of Orissa. The technology to be adopted for
this Integrated Steel Plant will be the DRI/BF/FAF route. The DRI plant has
unique feature of using syn gas from the coal gasification plants as reductant.
The DRI/coal gasification route is being used for the first time in the world
and has the advantage of using high ash coal which is predominantly available
in the vicinity of the project site. The Company has signed an agreement with
M/s. Lurgi Sasol Technology Company, South Africa for providing technology for
coal gasification.
The major plant facilities include Sinter Plant, Pellet Plant, Coke Oven and
By-Product Plant, Coal based Reduction Gas Facility, DRI Plant, Blast Furnace,
Steel Melting Shop, Slab Caster, Plate Mill, Hot Strip Mill, Oxygen Plant, Coal
Washery, Lime and Dolomite Plant and Power Plant. The technology suppliers for
Pellet Plant, Sinter Plant, Slab Caster along with Hot Strip Mill, FAF, Hot DRI
charging system and Lime and Dolomite Plant will be finalized by August'
2008.
Work for setting up of DRI plant of 2.0 million IPA capacity, Plate Mill
of 1.5 million IPA capacity and 1080 MW Power Plant has started.
Steel plant in
Patratu, Jharkhand
The Company is setting up 6.0 million IPA Integrated Steel Plant at Patratu in
the State of Tharkhand. Work for setting up of Wire Rod mill of 0.6 million IPA
capacity and Bar mill of 1.0 million IPA capacity has started. Contract has
been finalised with MFCON for detailed engineering for setting up 3.0 million
IPA steel plant. Blast Furnace contract has been finalised with SIFMFNS VAI,
Germany. Arrangements for financial tie ups are being made.
The Company has acquired 642 acres of land out of the total requirement of
3,100 acres. State Government of Tharkhand has allocated 69 MCM water for the
project and Damodar Valley Corporation has committed to supply 175 MVA power to
the project on 220 KV line. Environment clearance for the project has been
obtained from Ministry of Environment and Forest.
EI-Mutun Iron Ore Mine, Bolivia
Consequent to the awarding of exploitation rights by the Government of Republic
of Bolivia over an area of FI Mutun Mine which has an estimated reserves of 20
billion tonnes of Iron Ore, a Joint Venture agreement has been executed on 18th
July, 2007 between Tindal Steel Bolivia S. A. (JSB), a subsidiary of the
Company and Empresa Siderurgica Del Mutun (FSM) an entity of Government of
Bolivia. This agreement has been approved by the Bolivian parliament. The Joint
Venture agreement shall be valid for a period of 40 years.
The Company proposes to invest US$ 2.10 billion in next 8 years for development
of the mine in the granted concession and setting up mining facilities, steel
making facilities and the requisite infrastructure through JSB.
MANAGEMENT
DISCUSSION AND ANALYSIS
Business Review
Indian economy is growing at a steady and sustained pace and is expected to
register a growth rate of 8-8.5% for the year 2007-08. With positive indicators
such as rising foreign exchange reserves, booming capital markets, rapidly
expanding foreign direct investment inflows, Indian economy has emerged as the
fastest growing economy in the world. Industrial and services sector have been
the major contributors to this growth backed by increasing savings and
investment rates. India's per capita income has increased at a rapid pace and
according to the advance estimates of the Central Statistical Organization
(CSO) India's Per Capita Income is estimated to be over USD 825.07 in 2007-08.
Another significant aspect has been the broad-based nature of the growth
process. While new economy industries like Information Technology and
biotechnology have been growing around 30 per cent, significantly old economy
sectors like steel have also been major contributors in the Indian growth
process. India has moved up two places to become the fifth largest steel producer
in the world. After the IT boom, a manufacturing revolution has been well
underway in the Indian economy, spurred by the increasing presence of
multinationals, scaling up of operations by the domestic companies and
expanding domestic market. The sector has been averaging 9 per cent in the last
four years (2004-08), with a record 12.3 per cent in 2006-07. India's vast
domestic market and availability of low-cost workers with advanced technical
skills has been instrumental in attracting the ever expanding number of
multinationals who are setting up their manufacturing base in the country. The
large size of the Indian market has obvious appeal and is the largest consumer
market in the world.
Indian steel industry has entered into a new growth zone considering the
average growth rate in steel output for the last 5 years. The rapid rise in
production has resulted in India becoming the world's fifth largest producer of
steel. Demand for steel will continue to grow in traditional sectors such as
infrastructure, construction, housing, automotive, steel tubes and pipes,
consumer durables and ground transportation. Demand for specialized steel which
is used in hi-tech engineering industry such as power generation,
petro-chemicals, fertilizer etc. is also increasing. World wide production of
steel was 1344 million tons in 2007-08 against 1249 million tons of last year.
The production of steel in India in 2007-08 was 53.08 million tons as against
49.45 million tons in the previous year. Consumption of steel in India grew by
11.72% to 51.80 million tons in 2007-08. Steel is yet to touch the lives of
millions of people in India. Per capita consumption of steel in India is only
29 kgs as against 400 kgs in the developed countries and world average of 140
kgs. The world apparent consumption of finished steel in 2008-09 is likely to
rise by 5-6% and increase in supply is likely to be around 3-5%.
Inflation during the first nine months of 2007-08 was under control but from
January it has been steadily rising and has reached as high as 7.61% in April
08. The Government and Reserve Bank India (RBI) have taken series of steps for
checking inflation including impressing upon steel and cement manufacturers to
reduce prices despite heavy increase in the input costs. Export of iron ore
continues from Indian shores and iron ore availability in India on per capita
basis is one of the lowest in the world. If exports are not stopped India may
not remain self sufficient in iron ore. Current shortage of inputs has
increased the cost for steel products. There is need for the Government to help
develop raw material resources for inputs like iron ore and coal and to provide
adequate enabling infrastructure such as power, roads, ports, rail transport.
Government intervention in prices is only a short term solution. Determination
of steel prices should be left to the market dynamics which ensures price
correction.
Demand for steel is continuously increasing particularly in view of growth in
infrastructure sector and new capacities are being set up in India. National
steel policy formulated by Ministry of Steel envisages that by 2019-20
production of crude steel will reach 110 million tons, demand for steel will be
90 million tons, steel exports will be 26 million tons and steel imports will
be 6 million tons. In line with the rising demand for steel your Company is
setting up two steel plants of 6 million IPA each in Angul, Orissa and Patratu,
Jharkhand.
Opportunities and
Threats
Barring slight decrease in manufacturing sector and rising inflation, Indian
economy is poised for a quantum jump in the next decade particularly steel
industry in India and world over. Major investment will be made by the
Government through budgetary allocation on infrastructure where steel is
required in large quantities. Indian steel manufacturers are employing world
class technology. New innovations are also taking place in Steel Industry for
cost minimization and production maximization. Some of the cutting edge
technologies that are being implemented in this industry are thin-slab casting,
making of steel through the use of electric furnace and vacuum degassing. Steel
from India finds growing acceptability in international markets. Present share
of Indian steel industry in world trade steel is marginal and there is
tremendous scope to increase this share further.
The steel making capacity of the Company will increase to 8.4 million IPA after
commissioning of steel plant in Angul, Orissa and will go up to 14.4 million
IPA after commissioning of steel plant in Patratu, Jharkhand. The Company has
signed a Memorandum of Understanding with Government of Chhattisgarh for
increasing the capacity of Raigarh Plant from 3 million TPA to 6 million
TPA.
Power is crucial to industrial growth of India and private and public sector
units are making huge investments in this sector. The Company is also giving
major thrust to power generation. In addition to existing captive power plant
of 333 MW, 270 MW (2X135MW) captive power plant is being set up at Raigarh to
meet growing requirement of power at Raigarh works. 1080 MW captive power
project is a part of Steel project being set up at Angul, Orissa and 1000 MW
captive power project is a part of Steel project being set up at Patratu,
Jharkhand. Tindal Power Limited, a subsidiary of the Company is implementing
1000 MW (4X250 MW) power project at Tamnar in Raigarh out of which two units of
250 MW capacity each have already started commercial generation of power. The
plant will be fully operational by the end of July 2008.
Another key raw material for power as well as steel is coal and iron ore.
Applications have been made to State and Central Governments for allotment of
additional coal and iron ore mines. During the year under report the Company
was allotted Amarkonda - Murgadangal Coal block in Tharkhand jointly with Gagan
Sponge Iron Limited and another mine namely Titpur Coal Block in Tharkhand was
also allotted to the Company for captive use in proposed power plant in the
state of Tharkhand. State Government of Tharkhand has also allotted Teralda
Burn iron ore concession in Tharkhand for captive use in the proposed steel
plant in the state of Tharkhand.
The Central Government has issued Mining Policy - 2008 which provides an
important shift from the traditional 'conservationist' to an 'appropriate use'
of resources approach. This policy focuses on reduction in delays in the grant
of mineral concession which attempts to provide level playing field for all
players which will promote development of mining sector. The policy provides
for greater certainty to the exploration companies for grant of mining licenses
for the right to exploit the mineral resources successfully explored by it.
Pursuant to this policy the Company expects to be allotted more iron ore and
coal mines for its projects.
The Company's subsidiary Tindal Steel Bolivia, SA has executed documents with
the Government of Republic of Bolivia for development of FI Mutun iron ore mine
which contains iron ore reserves of about 20 billion MT. Exploration licence
has been granted and the mining license is expected to be granted in this
financial year. The mining work will start immediately after receiving mining
licence.
The Central Government has tried to impress upon the industry to reduce prices
in order to contain inflation and has announced removal of basic customs duty
(BCD) on pig iron and mild steel products viz. sponge iron, granules and
powders, ingots, billets, semi-finished products, hot rolled coils, cold rolled
coils, coated coils/sheets, bars and rods, angle shapes and sections, and
wires. Hitherto, these items attracted BCD of 5 per cent. To rein in prices of
IMF bars and structurals, which are commonly used for construction of houses,
the Government fully exempted the import of this item from countervailing duty,
which is currently 14 per cent. Also, the Government has done away with BCD on
three critical inputs for manufacture of steel- metallurgical coke, Ferro
alloys and zinc. To disincentivise export of steel, the Finance Minister
announced the imposition of 15 per cent export duty on specified primary forms
and semi-finished products, and hot rolled coils/sheet; 10 per cent on
specified rolled products including cold-rolled coils/sheets and pipes and
tubes and 5 per cent on galvanized steel in coil/sheet form. However, no new
fiscal measures were proposed on iron ore exports. These measures are bound to
affect export of steel products and will increase domestic availability by
resorting to imports which will affect price of steel products and profit
margins of steel making Companies.
Outlook
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 are coming
up in different parts of the country based on modern, cost effective, state of
the art technologies. With 13 billion tons of iron ore deposits, 5th largest in
the world and an expanding consumer market, the Indian steel industry is likely
to receive huge domestic and foreign investments.
Riding high on the resurgent economy and rising demand, the Indian steel
industry has entered into a new development stage from 2005-06, with an average
growth rate of 12 per cent per annum in steel output, for the last two
years.
Plate mill of 1.0 million IPA has started commercial production in the Raigarh
Plant and is producing plates of various sizes which are in great demand. Work
is going on for setting up of steel plant at Angul in Orissa and Patratu in
Tharkhand. On completion of these plants, the total steel making capacity of
the Company will rise to 14.4 million IPA which will cater to the increasing demand
of steel products.
Captive availability of iron ore, power and coal provides a competitive edge to
the Company particularly at a time when the Government is trying to control
prices. Besides, manufacturing facilities for production of a range of semi -
finished and finished steel products gives leverage to the Company in deciding,
based on demand and price, which products to manufacture.
Financial
Management
Big expansion plans are under way which require huge amount of funds. The
Company has a subsisting relationship with a large number of Banks and
Financial Institutions in India and abroad. Senior managerial personnel are
looking after the arrangement of funds at competitive cost, servicing of debts,
ensure timely availability of funds for the projects, management of internally
generated funds and maintaining healthy relations with all lenders.
In view of the growing size of operations, accounts and finance department at
all factories/ offices has been reinforced by induction of experienced and
professionally qualified people and their role and responsibilities have been
well defined. All financial transactions are properly recorded by the
department and proper financial reports are periodically sent to the senior
management.
The Company arranged Rs.1700 millions from Fls and banks for meeting capital
expenditure in the year under report. Efforts are being made to avail foreign
currency funds for keeping interest charges at lower level. External Commercial
Borrowings of US$ 200 million (equivalent in JPY) were availed from foreign
banks /lenders.
Industrial Relations and Human Resource
Management
Management of human resources is crucial to the growth of the Company. Indian economy
is growing at a fast pace which has resulted in shortage of talent. The policy
initiatives are directed towards inclusive growth and retention of talent. The
Company has revised and updated its human resource policies and procedures. The
Company had engaged management consultants to identify skill sets of people and
training requirements. Various training programmes are being held for different
levels to enhance their skills and update their knowledge.
The Company is organizing safety awareness programmes to eliminate chances of
accidents and danger to lives in line with the requirements of labour laws. The
medical/ educational/ recreational facilities are available within the work
premises for all classes of employees. Proper priority isaccorded for
cleanliness of factory premises as well as its surroundings.
Senior management continuously interacts with the staff members, sorts out
their problems and provides guidance to them in order to cope up with their
work efficiently. Rotation of employees is done in order to provide job
satisfaction and increased interface with new people. Grievance redressal
system is in place and employees suggestions are being sought to improve
operational efficiency.
CONTINGENT
LIABILITIES NOT PROVIDED FOR IN RESPECT OF
|
Description |
(As
on 31.03.2008) Rs.
In millions |
|
Guarantees issued by company’s Bankers on behalf of Company |
3529.200 |
|
Letter of credit opened by banks |
9326.700 |
|
Corporate guarantees / undertakings issued on behalf of third parties |
466.800 |
|
Disputed Excise Duty and other Demands |
306.900 |
|
Future liability on account of lease rent for unexpired period |
2.000 |
|
Bonds executed for machinery imports under EPCG Scheme |
7164.500 |
|
In respect of various Income Tax cases pending at various stages of
appeal with the authorities |
422.500 |
FIXED ASSETS
·
Land – Freehold
·
Land – Leasehold
·
Live Stock
·
Building
·
Plant and Machinery
·
Electrical Installation
·
Furniture and Fixtures
·
Vehicles
·
Air Craft (GE Lease)
·
Air Craft (Owned)
WEBSITE DETAILS
Unaudited
Financial Results
Highlights
of 2nd quarter ended Sep. 30, 2008
·
Net Profit after tax up by 62% to Rs.4500 millions (Rs.2774.700
millions)*
·
Net Sales up by 75% to Rs.22161.200 millions (Rs.12690.400 millions)*
*figures
in brackets are for 2nd quarter of the financial year 2007-08
Production
JSPL has shown
growth in production of all its major products. Details of growth in production
for the quarter ended September 30, 2008 with the corresponding quarter in the
previous financial year are as under:
For the Quarter II ended September 30, 2008:
|
Product (MT) |
Quarter I |
Growth (%) |
|
|
2008-09 |
2007-08 |
||
|
Metallics (DRI
and Pig Iron) |
633549 |
566037 |
12% |
|
Steel Products |
343328 |
303120 |
13% |
|
Power (million
kWh) |
683.44 |
604.18 |
13% |
Sales
Details of
increase in sales for the quarter ended September 30, 2008 with the
corresponding quarter in the previous financial year are as under:
For the Quarter II ended September 30, 2008:
|
Product (MT) |
Quarter I |
Growth (%) |
|
|
2008-09 |
2007-08 |
||
|
Metallics (DRI and Pig Iron) |
176350 |
216177 |
(18.42%) |
|
Steel Products |
372997 |
272215 |
37% |
|
Power (million kWh) |
265.19 |
186.02 |
42% |
Jindal Power Limited
·
Jindal Power Limited, a subsidiary, has finalised financial results for
the quarter ended 30th September, 2008, which are as under :-
Net Sales - Rs.6538.500 millions
Profit after Tax - Rs.3147.100 millions
·
JPL has commissioned its 4th unit of 250 MW on 5th September, 2008 and
now all the four units are commissioned and working in full capacity of 1000
MW.
News
Jspl Bags tink Odisha Leadership award In Corporate Social
Responsibility
Orissa chief minister Navin Patnaik gave away the Think Odisha
Leadership Award in corporate social responsibility to Jindal Steel & Power
Ltd (JSPL) , a company of the $ 10 billion O P Jindal Group, here on Thursday.
The Think Odisha Leadership Awards were given in various categories, including
Arts and Culture, Literature, Sports and Industry. In the corporate social
responsibility category , JSPL was adjudged the best company in the private
sector and NALCO in the public sector.
JSPL has got the
award for its pioneering social work in the Angul district of the state where
the company is setting up a 6 million ton integrated steel plant and 1080 mw
power plant. The company has built several roads and community halls, provided
facilities for health and education and initiated employment generation schemes
in the area.
Mr Rajesh Jha,
Executive Director of the JSPL project, received the award on behalf of the
company. Talking to media, he said “Though JSPL has got many awards for
Corporate social responsibility and environment protection for works done at
our other locations, but this award is special as it has come within a few
months of our starting the project work in Angul. This award will strengthen
our resolve to do more community work and make a difference in the lives of people
who some how cannot take full advantage of the government’s development
schemes.”
He said “We firmly
believe that institutions are made up of individuals and only socially
responsible and sensitive individuals make responsible normally corporates.”
JSPL has
voluntarily ensured the compliance of the UN Global Compact Supporting 10
Principles on human rights, labour, environment and corruption, etc to
demonstrate the highest degree of corporate social responsibility.
Jspl Lines up Rs 12k Cr For Raigarh Power Plant
NEW DELHI: Naveen
Jindal-led Jindal Steel and Power (JSPL) is planning to invest close to Rs
120000 millions, through a combination of debt and equity, in its proposed
2,640 MW thermal power plant at Raigarh in Chhattisgarh. For the new project,
which will be operational by 2013-14, the firm would require coal reserves of
over 400 million tonnes.
The project would
be undertaken by JSPL's subsidiary, Jindal Power (JPL). JPL has set up a 1,000
MW power plant at the same location in Raigarh out of which 750 MW of power has
already been commissioned and the balance 250 MW would be commissioned next
month.
"Though we
own some land next to the existing power plant, we would further require
significant amount of land for the proposed project. We are in talks with the
state government and hope to take possession of essential coal blocks and land
soon," said JPL deputy managing director, Sushil Maroo. He added, besides
commercial use, the new plant would be used for captive use for steel making.
For setting up
adequate infrastructure, the company is in talks with various equipment
suppliers across Europe and China besides India and is expected to place orders
in the next 3-4 months.
The company has
roped in SBI Capital Markets for conducting financial appraisals.
“After the
appraisal work gets over, we would approach investors for funds. The
debt-equity ratio for the proposed plant would be 70:30,” Mr Maroo added.
The equity portion
of the investment will come out of internal accruals and no fresh fund raising
is planned as of now. Soon, the company would also lay down dedicated
transmission lines to carry power from substations to the national grid.
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.49.46 |
|
UK Pound |
1 |
Rs.73.17 |
|
Euro |
1 |
Rs.62.96 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
5 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
5 |
|
--CREDIT LINES |
1~10 |
5 |
|
--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 |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
47 |
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
EXPLANATIONS
|
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. |
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 |
|
NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
|