MIRA
INFORM REPORT
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Report Date : |
06.04.2011 |
IDENTIFICATION DETAILS
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Name : |
JSW STEEL LIMITED |
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Registered
Office : |
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Country : |
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Financials (as
on) : |
31.03.2010 |
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Date of
Incorporation : |
15.03.1994 |
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Com. Reg. No.: |
11-152925 |
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CIN No.: [Company Identification
No.] |
L27102MH1994PLC152925 |
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TAN No.: [Tax Deduction &
Collection Account No.] |
MUMJ05285A / PNEJ05353F |
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PAN No.: [Permanent Account No.] |
AAACJ4323N / AACT4323N |
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Legal Form : |
A Public Limited
Liability Company. The Company's Shares are Listed on the Stock Exchanges. |
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Line of Business
: |
Manufacturers of
Hot Rolled Coils/Steel Plates. |
RATING & COMMENTS
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MIRA’s Rating : |
A (66) |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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 |
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Maximum Credit Limit : |
USD 390000000 |
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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 a reputed company having fine track.
Financial position of the company appears to be sound. Fundamentals are strong
and healthy. Trade relations are reported as fair. Business is active.
Payments are reported to be regular and as per commitments. The company can be considered normal for business dealings at usual
trade terms and conditions. |
NOTES:
Any query related to this report can be made
on e-mail: infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – April 1, 2010
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Country Name |
Previous Rating (31.12.2009) |
Current Rating (01.04.2010) |
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A1 |
A1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
INFORMATION DECLINED BY
Management Non Co Operative (Name Not Disclosed)
LOCATIONS
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Registered Office / Regional Office: |
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Tel. No.: |
91-22-23513000 / 23520980 / 43437199 |
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Fax No.: |
91-22-23526400 / 23522600 |
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E-Mail : |
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Website : |
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Corporate Office 1: |
JSW Foundation: Victoria House, 2nd Floor, Pandurang Budhkar Marg, Lower
Parel, Mumbai – 400013, |
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Tel No. : |
91-22-24927000/ 43437800 |
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Fax No. : |
91-22-24917960 |
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Email : |
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Corporate Office 2: |
The Enclave, Maratha
Udhog Bhavan, New |
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Tel No. : |
91-22-6783 8000 |
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Fax No. : |
91-22-2432 0740 |
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Factory 1 : |
Vijayanagar
Works P.O. Vidyanagar, |
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Tel. No.: |
91-8395 - 250120 to 30 |
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Fax No.: |
91-8395 - 250138/250665 |
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Factory 2 : |
Vasind
Works Shahapur Taluk, Thane District, Maharashtra - 421 604, |
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Tel. No.: |
91-2527 - 220022 to 025 |
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Fax No.: |
91-2527 - 220020/84/92 |
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Factory 3 : |
Tarapur
Works MIDC Boisar, Thane District, Maharashtra - 401506, |
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Tel. No.: |
91-2525 - 270147 / 270149 |
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Fax No.: |
91-2525 - 270148 |
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Factory 4 : |
Pottaneri, M. Kalipatti Village, Mecheri Post, Mettur
Taluk, Salem District, Tamilnadu - 636 453, |
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Tel. No.: |
91-4298 - 278400 to 404 |
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Fax No.: |
91-4298 - 278618 |
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Factory 5 : |
Vijayanager Minerals
Private Limited P.O. Vidyhanager, Toranagallu, Distrcit Ballary- 583275, |
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Tel. No.: |
91-8395-350120 |
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Fax No.: |
91-8395-240365 |
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Factory 4 : |
JSW Bengal Steel
Limited Tower A 3rd Floor, DLF IT Park, |
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Tel. No.: |
91-33-400002020 |
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Fax No.: |
91-33-40002021 |
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Factory 5 : |
Jindal Praxair
Oxygen Company Private Limited Post Box No. 16, Vidyangar, District Ballary – 583275, |
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Tel. No.: |
91-8395-250856 to 858 |
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Fax No.: |
91-8395-250781 |
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Factory 6 : |
South West Port
Limited 1st Floor, Port Users Complex, |
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Tel. No.: |
91-832-2523000 |
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Fax No.: |
91-832-2523006 |
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Factory 7 : |
JSW Aluminium
Limited Opposited NSTL, 58-17-1/1, Sanjevaya Nagar, Near |
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Factory 8 : |
JSW Energy –
Ratnagiri Limited |
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Factory 9: |
Raj West Power 308-311, |
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Factory 10 : |
JSW Cement
Limited R O Vidyanagar, Torangallu District Ballary-583275, |
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Tel. No.: |
91-8395-250120 to 30 |
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Fax No.: |
91-8395-250138/ 250665 |
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Branches : |
Located at :-
· Karnataka · Tamilnadu · Andhra Pradesh ·
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· Madhya Pradesh |
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Additional Main Office : |
Located at: · Mumbai ·
· Rajasthan |
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Overseas Office : |
JSW Steel (
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DIRECTORS
As on 31.03.2010
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Name : |
Mrs. Savitri Devi Jindal |
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Designation : |
Chairperson |
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Date of Birth
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30.03.1949 |
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Date of Appointment
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18.04.2005 |
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Qualification
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Under graduate |
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Other
Directorship : |
Rohit Towers Building Limited |
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Name : |
Mr. Sajjan Jindal |
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Designation : |
Vice Chairman and Managing Director |
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Age : |
45 years |
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Experience : |
24 years |
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Qualification
: |
B. Engineering (Mech.) |
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Date of
Appointment : |
04.07.1922 |
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Name : |
Mr. Seshagiri Rao M.V.S |
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Designation : |
Joint Managing Director and Group CFO |
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Name : |
Dr. S.K. Gupta |
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Designation : |
Director |
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Date of Birth
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18.03.1938 |
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Date of
Appointment : |
25.04.1994 |
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Qualification
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B.Sc (Met. Engg), Ph. D(Tech) and D.ScfTech) |
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Other
Directorship / Chairmanship in other
Indian Public Limited Companies |
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Name : |
Mr. Anthony Paul Pedder |
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Designation : |
Director |
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Date of Birth
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28.06.1949 |
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Date of
Appointment : |
18.04.2005 |
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Qualification
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B.Sc (Maths) M.Sc (Operation Research and
Management Studies) |
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Designation : |
Nominee Director Of (KSIDC) |
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Name : |
Dr. Vijay Kelkar |
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Designation : |
Director |
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Date of Birth
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15.05.1942 |
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Date of
Appointment : |
09.05.2005 |
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Qualification
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BS MS and PhD |
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Other
Directorship : |
IDFC Asset Management Company Limited Tata Chemicals Limited Jet 'Airways ( Development Credit Bank Hero Honda Motors Limited |
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Name : |
Mr. Sudipto Sarkar |
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Designation : |
Director |
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Date of Birth
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21.03.1946 |
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Date of Appointment
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09.05.2005 |
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Qualification
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B.Sc. (Maths-Hons) BA (Law Tripos) LL.M. (International Law) M.A. (Law) Barrister, Gray's |
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Name : |
Mr. Mrs. Vandita Sharma, IAS |
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Designation : |
Nominee Director of KSIIDC |
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Name : |
Mr. K. Vijayaraghavan |
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Designation : |
Director |
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Name : |
Mrs. Zarin Daruwala |
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Designation : |
Nominee Director of ICICI Bank Limited |
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Name : |
Mr. Uday Chitale |
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Designation : |
Director |
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Name : |
Dr. Vinod Nowal |
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Designation : |
Director And CEO (Vidayanagar Works) |
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Name : |
Mr. Jayant Acharya |
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Designation : |
Director |
KEY EXECUTIVES
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Key Person : |
·
S. S. Rao (JMD and CEO
– JSW Energy Limited) ·
Captain B. V. J. K. Sharma
(JMD and CEO – JSWIL and SWPL) ·
K. N. Patel (JMD and
CEO – JSW Holdings Limited) ·
D. Ravichander (CEO –
·
Biswadip Gupta (JMD
and CEO - JSW ·
Sandeep Gokhale
(President - Business Development, JSW Steel ) ·
R. C. Sodani (CEO –
JSW Cement Limited) ·
Pankaj Kulkarni (CEO
– Special Projects) ·
J. K. Tandon (CEO -
Corporate Sustainability) ·
Tuhin Mukherjee
(Executive Director - Mining) ·
Rajiv Garg (Director
– ·
Krishna Deshika
(Director Finance - ·
Pawan Kedia (Group
President - Commercial) ·
Rajinder Sharma
(President - Legal and Group General Counsel) ·
Sanjay Sagar
(President – Project Development, JSW Energy) ·
P. Sasindran (COO –
Vijayanagar works) ·
R.R. Pillai (COO –
JSWEL) ·
Upinder Singh (COO –
RWPL) ·
Raghu Bhargava (CEO –
JSW Services) ·
C. T. Nadarajah Nagappa
(CEO – ·
Rajesh Asher (Sr.
Vice President – Finance and Investor Relations) ·
Anirudh Singh (Sr. Vice
President – Corporate HR) ·
Sunil Prakash (Sr.
Vice President - Business Development and Operational Excellence) ·
Rajeev Pai (CFO, JSW
Steel Limited) ·
Pramod Menon (CFO -
JSW Energy Limited) ·
R.G Ramchandran (CFO
- SWPL and JSWIL.) ·
Manoj Mohta (CFO –
JSW Cement Limited) ·
Sharmila Banerjee
(Group Head - Corporate Communications) ·
Prashant Jain (Head
Corporate Strategy) |
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Name : |
Mr. Lancy
Varghese |
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Designation : |
Company
Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
(AS ON 31.12.2010)
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Names of
Shareholders |
No. of Shares |
Percentage of
Holding |
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(A) Shareholding of Promoter and Promoter Group |
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3970588 |
1.80 |
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907952 |
0.41 |
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73561502 |
32.43 |
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78440042 |
34.65 |
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5704612 |
2.59 |
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5704612 |
2.59 |
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Total shareholding of Promoter and Promoter Group (A) |
84144654 |
38.24 |
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(B) Public Shareholding |
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1056957 |
0.48 |
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9289569 |
4.22 |
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1237500 |
0.56 |
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58249489 |
26.47 |
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69833515 |
31.74 |
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7295592 |
3.32 |
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12920904 |
5.87 |
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998779 |
0.45 |
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44837942 |
20.38 |
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549375 |
0.25 |
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41201389 |
18.73 |
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40712 |
0.02 |
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3046466 |
1.38 |
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66053217 |
30.02 |
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Total Public shareholding (B) |
135886732 |
61.76 |
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Total (A)+(B) |
220031386 |
100.00 |
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(C) Shares held by Custodians and against which Depository Receipts
have been issued |
- |
- |
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(1) Promoter and Promoter Group |
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(2) Public |
3085814 |
1.38 |
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3085814 |
1.38 |
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Total (A)+(B)+(C) |
187,048,682 |
100.00 |
(1) Indian
Individuals / Hindu Undivided Family
Individual shareholders holding nominal
share capital up to Rs. 0.100 MillionBUSINESS DETAILS
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Line of Business : |
Manufacturers of
Hot Rolled Coils/Steel Plates. |
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Products : |
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Exports : |
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Products : |
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Countries : |
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Imports : |
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Products : |
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Countries : |
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PRODUCTION STATUS (AS ON 31.03.2010)
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Particulars |
Unit |
Installed Capacity |
Actual Production |
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Ms Slabs |
Tonnes |
5300000 |
4497592 |
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Hot Rolled Coils/Steel
Plated/Sheets |
Tonnes |
3200000 |
3399183 |
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Hot Rolled Steel
Plates |
Tonnes |
320000 |
309950 |
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Cold Rolled Coils
/ Sheet |
Tonnes |
1825000 |
1500150 |
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Galvanized Coils
/ Sheet |
Tonnes |
900000 |
904644 |
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Colour Coating Coils/Sheets |
Tonnes |
232000 |
148195 |
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Steel Billets And Bloom |
Tonnes |
2500000 |
1488963 |
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Long Rolled Products |
Tonnes |
1950000 |
957448 |
NOTE:
1. Licensed capacity is not applicable in view of the Company’s
products having been delicensed as per the licensing policy of the Government
of India.
2. Installed capacity is as certified by the management and
accepted by auditors, being a technical matter.
3. Production of Galvanized/ Galvalume Coils/ Sheets
includes 58,392 tonnes from a third party on a job work basis.
GENERAL INFORMATION
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No. of Employees : |
2500
(Approximately) |
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Bankers : |
· Allahabad Bank ·
Bank of ·
Bank of · ICICI Bank Limited · IDBI Bank Limited · Indian Bank · Indian Overseas Bank · Punjab National Bank ·
State Bank of ·
State Bank of ·
State Bank of ·
State Bank of ·
Union Bank of ·
Vijaya Bank |
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Facilities : |
NOTES: 1.
Terms of Redemption of Non Convertible Debentures (NCDs): (i) The 8.00% Redeemable Secured NCDs of Rs.10,00,000 each
aggregating to Rs.2500.000 Millions are redeemable on 07.05.2010. (ii) The 8.10% Redeemable Secured NCDs of Rs.10,00,000
each aggregating to Rs.2500.000 Millions are redeemable on 19.05.2010. (iii) The 10.10% Redeemable Secured NCDs of
Rs.10,00,000each are partly redeemable in 16 quarterly installments of
Rs.312.500 Millions each from 04.02.2014 to 04.11.2017 and partly redeemable
in 16 quarterly installments of Rs.312.500 Millions each from 15.06.2014 to
15.03.2018 (iv) The 10.20% Redeemable Secured NCDs of Rs.10,00,000
each are redeemable in 25 quarterly installments of Rs.19.500 Millions each
from 15.04.2010 to 15.04.2016. (v) The 10.20% Redeemable Secured NCDs of Rs.10,00,000
each are redeemable in 19 quarterly installments of Rs.20.900 Millions each
from 01.07.2010 to 01.01.2015. (vi) The 10.25% Redeemable Secured NCDs of Rs.10,00,000
each are redeemable in 3 equal annual installments of Rs.1666.700Millions
each from 17.02.2016 to 17.02.2018. (vii) The 10.60% Redeemable Secured NCDs of Rs.10,00,000
each are partly redeemable in 8 half yearly installments of Rs.218.750
Millions each from 02.01.2016 to 02.07.2019 and partly redeemable in 8 half
yearly installments of Rs.218.750 Millions each from 02.08.2016 t0
02.02.2020. 2.
Details of Security: (a) The 8% NCDs aggregating to Rs.2500.000 Millions along
with the 8.10% NCDs aggregating to Rs.2500.000 Millions are secured by pari
passu first charge by way of legal mortgage on land situated in the State of
Gujarat. (b) The 10.10% NCDs aggregating to Rs.10000.000 Millions
are secured/ to be secured by: - pari passu first charge by way of legal mortgage on all
immovable properties both present and future located at Tarapur Works and
Vasind Works in the State of Maharashtra. - pari passu first charge on all immovable properties and
movable assets both present and future located at Salem Works in the State of
Tamil Nadu. (c) The 10.20% NCDs aggregating to Rs.487.500 Millions
along with Rupee Term Loans from Banks aggregating to Rs.937.500 Millions are
secured by: - pari passu first charge by way of legal mortgage on a
flat situated at Mumbai, in the State of - pari passu first charge by way of equitable mortgage of
the Company’s immovable properties relating to the 100MW and 130MW Power
Plants at Toranagallu village in the State of Karnataka. (d) The 10.20% NCDs aggregating to Rs.397.800 Millions are
secured by: - First charge on land situated in the State of - Second charge on Fixed Assets situated at Salem Works in
the State of (e) The 10.25% NCDs aggregating to Rs.5000.000 Millions
are secured by way of mortgage in respect of all immovable and movable
properties both present and future located at Tarapur Works and Vasind Works
in the State of (f) The 10.60% NCDs aggregating to Rs.3500.000 Millions
are secured/ to be secured by: - pari passu first charge by way of legal mortgage on land
situated in the State of - pari passu first charge by way of equitable mortgage on
fixed assets of the new 5 mtpa Hot Strip Mill at Toranagallu village in the
State of Karnataka. (g) Certain Foreign Currency Loans aggregating to
Rs.43.500 Millions are secured by way of Guarantee Assistance by a consortium
of Banks/ Financial Institutions. (h) The said Guarantee Assistance aggregating to Rs.43.500
Millions, Rupee Term Loans from Banks aggregating to Rs.10146.500 Millions,
Rupee Term Loan from financial Institution aggregating to Rs.65.000 Millions and
Foreign Currency Term Loans from Banks aggregating to Rs.2963.100 Millions
are secured by: - pari passu first charge by way of equitable mortgage in
respect of immovable properties of Upstream Division situated at Vaddu,
Kurekuppe and Toranagallu villages in the State of Karnataka and - pari passu first charge by way of hypothecation of
movable properties of Upstream Division both present and future excluding
inventories and book debts. (i) The Rupee Term Loans from banks aggregating to
Rs.5166.100 Millions, Foreign Currency Term Loans from banks aggregating to
Rs.2253.800 Millions and Rupee Term Loan from Financial Institution
aggregating to Rs.300.600 Millions are secured by a first charge supported by
an equitable/ registered Mortgage of movable and immovable properties and
assets situated at Salem Works in the State of Tamil Nadu and a second pari
passu charge on the current assets at Salem Works and Pledge of 438,955
equity shares of the Company held by promoters. (j) Rupee Term Loan aggregating to Rs.4000.000 Millions
from banks is secured by: - pari passu first charge by way of equitable mortgage on
the entire fixed assets consisting of Land and Buildings as well as Plant and
Machineries relating to 230MW Power Plant, Blast Furnances I and Coke Oven I
at Toranagallu village, in the State of Karnataka. - pari passu first charge on the immovable property of a
third party situated at Mumbai, in the State of (k) Rupee Term Loans from Banks/Foreign Currency Term Loan
from Bank are secured/to be secured as under: - Rupee Term Loans aggregating to Rs.158.200 Millions by
first charge by way of equitable mortgage in respect of all movable and
immovable properties of Coke Oven Plant II at Toranagallu village in the
State of - Rupee Term Loans aggregating to Rs.2900.000 Millions and
Foreign Currency Term Loans aggregating to Rs.2934.100 Millions by exclusive
first charge by way of equitable mortgage in respect of all movable and
immovable properties of Cold Rolling Mill Complex at Toranagallu village in
the State of - Rupee Term Loans aggregating to Rs.7478.300 Millions and
Foreign Currency Term Loans aggregating to Rs.3653.300 Millions by exclusive
first charge by way of equitable mortgage in respect of all movable and immovable
properties both present and future of 2.8 mtpa expansion project at
Toranagallu village, in the State of - Foreign Currency Term Loans aggregating to Rs.7899.500
Millions by exclusive first charge by way of equitable mortgage in respect of
all movable and immovable properties of Hot Strips Mill at Toranagallu
village in the State of Karnataka. - Rupee Term Loans aggregating to Rs.1323.000 Millions by
first charge by mortgage of the Office Complex constructed or being
constructed at village Kole Kalyan, Mumbai, in the State of - Rupee Term Loans aggregating to Rs.1,1850.000 Millions
by pari passu first charge by way of equitable mortgage in respect of all
movable and immovable properties both present and future, first charge/Assignment
of all the assets and first charge on all the Bank Accounts of 3.2 mtpa
expansion project at Toranagallu village in the State of (l) Foreign Currency Term Loans from Bank aggregating to
Rs.245.300 Millions are secured by way of equitable mortgage in respect of
all immovable and movable properties both present and future located at
Tarapur Works and Vasind Works, in the State of (m) Rupee Term Loan from Financial Institution aggregating
to Rs.589.300 Millions are secured by exclusive first charge by way of
hypothecation of Bombardier Challenger 300 aircraft. (n) Working capital loans aggregating to Rs.582.800
Millions by: - pari passu first charge by way of hypothecation of
Stocks of Raw Materials, Finished Goods, Work-in-Process, Consumable Stores
and Spares and Book Debts/Receivables of the Company, both present and
future. - pari passu second charge on movable properties and
immovable properties forming part of the Fixed/Blocked assets of the company,
both present and future except such properties as may be specifically
excluded. (o) Certain Working capital loans are collaterally secured
by: - pledge of 1,10,00,000 equity shares of Jindal Coated
Steel Limited and 1,20,75,000 equity shares of the Company held by promoters. - pari passu second charge on the immovable property of a
third party. 3. Out
of the above, Rupee/Foreign Currency Term Loans from Banks aggregating to
Rs.403.500 Millions along with interest there on are personally guaranteed by
the Vice Chairman and Managing Director of the Company.
NOTE: The FCCB’s are convertible into Equity Shares at the
option of the bondholders at any time on or after 7 August, 2007 and prior to
the close of business on 21 June, 2012 at an initial conversion of Rs.953.40
per share at a fixed exchange conversion ratio of Rs.40.28 = 1 US$. |
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
STATUTORY AUDITORS Deloitte Haskins
and Sells Chartered
Accountants. |
|
|
|
|
Group : |
· JSW Energy Limited · JDW Holdings Limited · JSW Infrastructure And Logistic Limited · Vijayanagar Minerals Private Limited · JSoft Solutions Limited · Jindal Prazair Oxygen Company Limited · JSW Building Systems Limited |
|
|
|
|
Joint Ventures : |
· Vijayanagar Minerals Private Limited · Rohne Coal Company Private Limited · JSW Severfield Structures limited · Gourangdih Coal Limited · Toshiba JSW Turbine and Generator Private Limited ·
MJSJ Coal Limited |
|
|
|
|
Subsidiaries: |
·
JSW Steel ( ·
JSW Steel Service Centre ( · Argent Independent Steel (Holdings) Limited · JSW Natural Resources Limited ·
JSW Natural Resources ·
JSW Steel ( ·
JSW Steel Holding ( ·
JSW Steel ( · JSW Panama Holdings Corporation · Inversiones Eurosh Limited ·
· Santa Fe Puerto S.A. · JSW Steel Processing Centres Limited · JSW Jharkhand Steel Limited · JSW Bengal Steel Limited · Barbil Benefication Company Limited ·
JSW Building Systems Limited |
|
|
|
|
Associates: |
·
Jindal Paraxier Oxygen Company Private
Limited. ·
JSW Enery ( |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
2000000000 |
Equity shares |
Rs.10/- each |
Rs.20000.000 millions |
|
1000000000 |
Preference Shares |
Rs.10/- each |
Rs.10000.000 millions |
|
|
Total |
|
Rs.30000.000
millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
187048635 |
Equity shares |
Rs.10/-each |
Rs.1870.500
millions |
|
|
Add: Equity shares Forfeited |
|
Rs. 610.300
millions |
|
27,90,34,907 |
10%
Cumulative Redeemable Preference
Shares |
Rs.10/-each |
Rs.2790.300
millions |
|
|
Total |
|
Rs.5271.100 Millions |
NOTES:
1. Of the above, 7,70,27,049 equity shares are allotted as fully paid-up pursuant to Schemes of Arrangement and/or Amalgamation without payment being received in cash as follows:
a) 4,39,98,500 equity shares to the shareholders of erstwhile Jindal Iron and Steel Company Limited.
b) 65,57,070 equity shares to the shareholders of erstwhile Euro Ikon Iron and Steel Private Limited.
c) 50,35,767 equity shares to the shareholders of erstwhile Euro Coke and Energy Private Limited.
d) 64,00,000 equity shares to the shareholders of erstwhile JSW Power Limited.
e) 1,50,35,712 equity shares to the shareholders of erstwhile Southern Iron and Steel Company Limited.
2 The 10% Cumulative Redeemable Preference Shares are
redeemable at par in four equal quarterly installments commencing from 15
December 2017.
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
5271.100 |
5370.100 |
5370.100 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
91792.300 |
74222.400 |
71402.400 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
97063.400 |
79592.500 |
76772.500 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
89875.100 |
82146.100 |
54970.800 |
|
|
2] Unsecured Loans |
25975.900 |
30580.200 |
20494.500 |
|
|
TOTAL BORROWING |
115851.000 |
112726.300 |
75465.300 |
|
|
DEFERRED TAX LIABILITIES |
19649.500 |
14211.600 |
12518.400 |
|
|
|
|
|
|
|
|
TOTAL |
232563.900 |
206530.400 |
164756.200 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
168661.400 |
130864.400 |
109554.900 |
|
|
Capital work-in-progress |
66842.700 |
92420.600 |
56124.300 |
|
|
|
|
|
|
|
|
INVESTMENT |
17683.500 |
12501.100 |
9235.300 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
25857.700
|
20514.200
|
15491.600
|
|
|
Sundry Debtors |
5632.500
|
3981.400
|
3373.900
|
|
|
Cash & Bank Balances |
2871.100
|
4199.600
|
3392.200
|
|
|
Other Current Assets |
21233.900
|
17448.800
|
186.200
|
|
|
Loans & Advances |
0.000
|
172.400
|
8421.500
|
|
Total
Current Assets |
55595.200
|
46316.400 |
30865.400 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditor |
73576.700
|
74762.800
|
36663.600
|
|
|
Other Current Liabilities |
0.000
|
0.000
|
0.000
|
|
|
Provisions |
2642.200
|
809.300
|
4360.100
|
|
Total
Current Liabilities |
76218.900
|
75572.100
|
41023.700
|
|
|
Net Current Assets |
(20623.700)
|
(29255.700)
|
(10158.300)
|
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
232563.900 |
206530.400 |
164756.200 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.
2010 |
31.03.2009 |
31.03.2008 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
182024.800 |
140012.500 |
114200.000 |
|
|
|
Other Income |
5328.400 |
2595.600 |
2571.400 |
|
|
|
TOTAL (A) |
187353.200 |
142608.100 |
116771.400 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Manufacturing Expenses |
31037.000 |
24292.900 |
20975.700 |
|
|
|
Raw Material Consumed |
104606.800 |
84501.000 |
56938.500 |
|
|
|
Managerial Remuneration |
3652.000 |
2887.500 |
2739.800 |
|
|
|
Exceptional Items |
0.000 |
7901.300 |
0.000 |
|
|
|
TOTAL (B) |
139295.800 |
119582.700 |
80654.000 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
48057.400 |
23025.400 |
36117.400 |
|
|
|
|
|
|
|
|
|
Less |
INTERESTS (D) |
8626.800 |
7972.500 |
4404.400 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
39430.600 |
15052.900 |
31713.000 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
11234.100 |
8276.600 |
6871.800 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
28196.500 |
6776.300 |
24841.200 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
7969.100 |
2191.300 |
7559.300 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
20227.400 |
4585.000 |
17281.900 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
38831.500 |
35058.600 |
22675.600 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer (to)/from Debenture Redemption Reserve |
(1250.000) |
204.500 |
233.000 |
|
|
|
Transfer to Capital Redemption reserve |
(99.000) |
-- |
|
|
|
|
Dividend on Preference Shares |
(289.200) |
(289.900) |
(290.600) |
|
|
|
Proposed Final Dividend on Equity Shares |
(1777.000) |
(187.100) |
(2618.700) |
|
|
|
Corporate Dividend Tax |
(343.100) |
(81.100) |
(494.400) |
|
|
|
Transfer to General Reserve |
(2022.800) |
(458.500) |
(1728.200) |
|
|
BALANCE CARRIED
TO THE B/S |
53277.800 |
38831.500 |
35058.600 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
F.O.B Value of Export |
26837.800 |
41131.500 |
31584.500 |
|
|
|
|
602.100 |
485.800 |
1111.100 |
|
|
|
Interest income |
280.300 |
329.700 |
291.000 |
|
|
TOTAL EARNINGS |
27720.200 |
41947.000 |
32986.600 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
64044.600 |
60321.900 |
26531.500 |
|
|
|
Stores & Spares |
1728.200 |
1825.600 |
679.600 |
|
|
|
Capital Goods |
19358.500 |
16040.000 |
3843.300 |
|
|
TOTAL IMPORTS |
85131.300 |
78187.500 |
42846.700 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
106.34 |
22.70 |
95.26 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2010 1st
Quarter |
30.09.2010 2nd
Quarter |
31.12.2010 3rd
Quarter |
|
Net Sales |
46802.100 |
57759.000 |
58075.500 |
|
Total Expenditure |
36457.500 |
47837.500 |
48073.800 |
|
PBIDT |
10344.600 |
9921.500 |
10001.700 |
|
Other Income |
31.400 |
1633.800 |
78.900 |
|
Operating Profit |
10376.000 |
11555.300 |
10080.600 |
|
Interest |
2141.600 |
1993.400 |
1319.800 |
|
Exceptional Items |
0.000 |
0.000 |
0.000 |
|
PBDT |
8234.400 |
9561.900 |
8760.800 |
|
Depreciation |
3172.200 |
3324.400 |
3463.600 |
|
Profit Before Tax |
5062.200 |
6237.500 |
5297.200 |
|
Tax |
1559.500 |
1783.100 |
1474.200 |
|
Provision and Contingencies |
0.000 |
0.000 |
0.000 |
|
Profit After TAx |
3502.700 |
4454.400 |
3823.000 |
|
Extraordinary Items |
0.000 |
0.000 |
0.000 |
|
Prior Period Expenses |
0.000 |
0.000 |
0.000 |
|
Other Adjustments |
0.000 |
0.000 |
0.000 |
|
Net Profit |
3502.700 |
4454.400 |
3823.000 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
PAT / Total Income |
(%) |
10.80
|
3.22 |
14.80 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
15.49
|
4.84 |
21.75 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
12.57
|
3.82 |
17.69 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.29
|
0.09 |
0.32 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
1.98
|
2.37 |
1.52 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
0.73
|
0.61 |
0.75 |
LOCAL AGENCY FURTHER INFORMATION
SUNDRY CREDITORS
DETAILS
Rs. In Millions
|
Particulars |
31.03.2010
|
31.03.2009
|
31.03.2008
|
|
|
|
|
|
|
Sundry Creditor |
73576.700
|
74762.800
|
36663.600
|
HISTORY
Subject was incorporated on 15th March 1994 at
Subject
was promoted by Jindal Iron and Steel Company (JISCO) and its associated
companies of the Jindal Group, together with the Karnataka State Industrial
Investment and Development Corporation (KSIIDC), has set up an integrated steel
plant to manufacture 1.65 mtpa of hot-rolled coils at Torangallu (Ballary),
Karnataka (estimated cost Rs.33000.000 millions), which includes a pellet plant
at an estimated cost of Rs.3000.000 millions.
The
company will use the Corex-BOF (basic oxygen furnance) process developed by
Voest Alpine, Austia, for this mega project. The project was part financed by
the proceeds of the successful Rs.12250 millions equity-cum-debenture issues in
February, 1995.
In 1994-95,
a joint venture company – Jindal Tracteble Power Company, was established for
supply of power, in collaboration with Tractebel, Belgium, Another joint
venture company Jindal Praxair Oxygen Company (Private) Limited was established
in 1995-96, in collaboration with Praxair, USA, for setting up oxygen plants.
1999-2000,
it completed the Corex-01, BOF-01 ontinous Slab Claster – 01 and Lime
Calcination plant. The pelletisation plant and Corex-02 is under implementation
and is expected to be completed by the end of 2000.
It
has entered into a technical collaboration with Voest Alpine, for technical
details with respect to productivity etc.
It
has also entered into joint venture agreements for power supply, oxygen plant
and mining.
The total hot rolled coils produced in 2000-01 was 788336
tonnes and the company made full effort to complete the balance project viz.
Pelletisation plant, Corex-02 and continuous casting plant-02 in the same year.
The re-circulation system for the SGP, extension of the coil yard of HM and CTL
bays, gasholder of 100000-m3 capacity was the projects completed in
2001-02.
FINANCIAL RESULTS
The fiscal year would be marked as an important year for the
domestic steel industry. When the year began, the Indian economy, invalidating
the theory of coupling, started showing signs of growth, amidst the global
slowdown that was still prevailing, however, during the course of FY 2009-10,
the export dependency on the advanced world declined substantially, driven by
stimulated domestic demand.
The Company took various strategic initiatives to improve
its volumes and profitability, which helped the Company to post an impressive
performance for the year.
The 2.8 MTPA Crude Steel Expansion Project at Vijayanagar
Works commenced commercial production on 10th April 2009 enhancing the Crude
Steel manufacturing capacity to 6.8 MTPA and scaling up the overall steel
manufacturing capacity of the Company to 7.8 MTPA. With the completion of this
expansion project, the Company has scaled new heights as a leading player in
the steel industry in the country. The Expansion facilities stabilized quickly
and achieved hot metal production of 2.2 Million tonnes during the current year,
which worked out to around 78% of the Installed capacity.
Consequently, the Company achieved a significant volume
growth of 61% in crude steel production and 67% in saleable steel during the
current year, compared to that of last year, despite disruptions in the plant
operations at Vijayanagar Works due to unprecedented and incessant rains
followed by floods in southern part of
The production of Rolled Products, both Long and Flat
(including Value Added Flat), went up significantly compared to last fiscal. HR
Coil production has reached highest levels at 3.399 Million tones during the
year, which is around 106% of enhanced rated capacity of 3.2 Million tonnes.
The HR Coil production is expected to go up further, on stabilization of the
state-of-the-art new Hot Strip Mill, commissioned at Vijayanagar Works in March
2010.
The domestic sales volume continued to show rising trend,
constituting 84% of the total sales for current year as against 72% in the last
year, in line with Company’s strategy of increased focus in the domestic
markets. The number of JSW Shoppe outlets went up to 174 and the Retail sales
for the current fiscal, through JSW Shoppe, accounted for 16% of domestic
sales, excluding semis.
The various cost reduction initiatives taken by the Company,
such as, increased coal injection in blast furnace, lower usage of fluxes,
higher captive power generation, increase in utilization of Corex Gas, usage of
Coke Oven Gas from Recovery Type Coke Ovens, etc., along with lower input costs
led to reduction in cost of production.
The Gross Turnover and Net Turnover for the year stood at
Rs.19,4566.400 Millions and Rs.18,2024.800 Millions, respectively, showing a
growth of 28% and 30% over the previous year mainly driven by growth in
volumes, in spite of drop in blended sales realizations by 21%, relative to
that of previous fiscal year.
The EBIDTA for the year was Rs.4,8057.400 Millions inclusive
of forex gains of Rs.4129.500 Millions. The EBIDTA margin for the year was
26.2% as against 21.8% in the previous year.
The Company posted a highest ever Profit after Tax of
Rs.2,0227.400 Millions, up 341% over the last year.
PROJECTS AND EXPANSION PLANS
VIJAYANAGAR WORKS
(a) Projects commissioned during FY 2009-10
• The implementation of the Crude Steel capacity expansion
project by 2.8 MTPA to reach 6.8 MTPA at Vijayanagar Works was completed, with
the commissioning of Pulverized Coal Injection Unit and Top Gas Recovery
Turbine in Blast Furnace #3 and RH Degasser unit and LHF #2 in Steel Melt
Shop#2, during first quarter of FY 2009-10.
• All major facilities such as Blast Furnace #3, SMS #2
comprising of Converters, Slab Caster and Billet Caster, Long Product Mills
comprising of Wire Rod Mill and Bar Rod Mill along with the other support
facilities such as Coke Oven#3, Sinter Plant#2, Raw Material Handling systems,
Utilities and other infrastructural facilities forming part of this expansion
project, which were commissioned during last fiscal 2008-09, achieved its full
capacity production levels during the current year.
• The state-of-the-art new Hot Strip Mill with a capacity of
5 MTPA is being implemented in two phases. The Phase-I with a capacity of 3.5
MTPA has been successfully commissioned on March 28, 2010. After successful
trial runs, the Mill commenced commercial operations on 10 April 2010. Phase-II
is under implementation.
(b) Projects under Progress
• Further expansion of crude Steel capacity by 3.2 MTPA to
reach 10 MTPA at Vijayanagar Works along with associated facilities is under
implementation and targeted for completion by March 2011.
(c) Other Projects
• Beneficiation
plant of 20 MTPA is being executed in two phases. One of the three units of
first phase came in operation in December 2009. 2nd and 3rd units will be
completed by July 2010 and December 2010, respectively. Phase II is planned for
completion in FY 2011-12.
• To
enhance productivity levels in the Blast Furnaces, one more Pellet
Plant of 4.2 MTPA capacity is being added and is planned for commissioning by
March 2011.
• The new captive power plant of 300 MW is also expected to be commissioned in FY 2011-12 to achieve self sufficiency in power at 10 MTPA stage.
(a) Major
modifications undertaken during FY 2009-10. ]
The following modifications/improvements were made during FY 2009-10:
• Adapted tuyere gas control and a “Jugad” slag-splash technique for
improving the refractory life of EOF.
• Introduced Economizer in captive power plant (CPP) to enhance fuel
efficiency.
• Islanding scheme was implemented in the electrical power system.
• Imposed loop-control rolling mill giving enhanced productivity for
special steel.
(b) Projects under
progress
Blooming Mill Phase I and Phase II, 300 TPD lime kiln, third railway
line and Wagon Tippler will be commissioned during FY 2010-11. With the
commissioning of Blooming Mill in FY 2010-11, Salem Works will complete
expansion of rolling capacity, matching with the existing cast steel production
capacity.
VASIND
AND TARAPUR WORKS
(a)
Projects commissioned during FY 2009-10
30 MW Power Plant has been commissioned at Tarapur in
December 2009, equipped with latest ESP system and designed for zero affluent
discharge. This has not only helped the Company in reducing the cost of
production vis-à-vis procuring costly power from the state electricity grid for
the manufacturing operations but the Company has also entered into an agreement
with Maharashtra State Electricity Distribution Company Limited (MSEDCL) for
sale of the surplus power. Since December 2009, the Company has been selling
the surplus power to MSEDCL.
(b)
Projects under progress
• Railway Siding at Vasind – expected to be commissioned in
January 2011.
• RLNG Project at Vasind to replace costly fuels being used (Furnace
Oil in HRM and LPG in Galvanizing Lines) – expected to be commissioned in
January 2011.
• Galvalume Project – For conversion of existing CGL 1 and
CSD II Galvanizing lines, equipment procurement in progress.
SUBSIDIARY,
JOINT VENTURE AND ASSOCIATE COMPANIES
A.
INDIAN SUBSIDIARIES
1. JSW Bengal Steel
Limited (JSW Bengal), its Subsidiary Barbil Beneficiation Company Limited and
Associate JSW Energy (
JSW Bengal Steel Limited was incorporated for setting up a
Steel Plant in the State of
The first phase will be 4 MTPA Integrated Steel Plant with an estimated project cost of Rs.15,0000.000 Millions. The Company is drawing up plans to take up implementation of the project in FY 2010-11 on achieving financial closure.
JSW Bengal has entered into sole and exclusive long term
Coal Supply Agreement in March 2010, with West Bengal Mineral Development
Corporation Limited (WBMDTC), for supply of coal from the Kulti and Sitarampur
coal blocks.
A new SPV namely JSW Energy (Bengal) Limited (JSWEBL) has
been incorporated on 8th February 2010, with 26% of share holding by JSW Bengal
and 74% by JSW Energy Limited. JSWEBL proposes to set up a 2X800 MW captive
power plant to meet the power requirement of JSW Bengal and sell excess power
to WBEPCL/ JSW Power Trading Company Limited, at an estimated project cost of Rs.9,6800.000
Millions, including investment for Coal Mine development of Rs.2,0000.000
Millions, which is proposed to be funded by way of Debt and Equity in the ratio
of 3:1. Target date for completion is FY 2014-15.
2. JSW Jharkhand Steel Limited
JSW Jharkhand Steel Limited was incorporated for setting up
a steel plant in the State of
3. JSW Steel Processing Centres Limited (JSWSPCL)
JSW Steel Processing Centres Limited (JSWSPCL) is a 100%
subsidiary of the Company. The subsidiary company was set up as Steel Service
Centre consisting of HR/CR Slitter and cut to length facility with annual slitting
capacity of 500,000 tonnes. The Company processed 3,04,718 tonnes of steel
during the FY 2009-10, as compared to 1,04,110 tonnes in the previous year.
4. JSW Building Systems Limited (JSWBSL)
JSWBSL, a 100% subsidiary, was incorporated on 28 March,
2008 with its main objects as to design, make, prepare, develop, create, alter,
replace, repair pre-fabricated building systems and technologies. It was
envisaged that JSWBSL will be participating in the 50% equity capital of JSW
Severfield Structures Limited, a JV Company incorporated in March 2009 with
50:50 Equity participation by JSWBSL and Severfield-Rowen Mauritius Limited.
The Company has directly invested 50% Equity in the JV Company, instead of
through JSWBSL.
B.
OVERSEAS SUBSIDIARIES
1.
JSW
Steel (
JSW Netherlands is a holding Company for
(a)
JSW
Steel Holding (USA) Inc. and its subsidiary JSW Steel (USA) Inc.
During the financial year 2009-10, the performance of Plate
and Pipe Mill in
There has been improvement in US operations during the last
quarter i.e. Q4 FY 2009-10, with increase in capacity utilization at the back
of improved market demand and lower costs. The US Subsidiary achieved positive
EBIDTA of US$ 2.08 Million during Q4 FY 2009-10.
It is expected that during the next fiscal FY 2010-11, US
operations will show progress in terms of operational performance with improved
capacity utilization and also improved financial performance with better
realizations.
(b) JSW Steel (UK) Limited and its Subsidiaries namely
Argent Independent Steel (Holdings) Limited and JSW Steel Service Centre (UK)
Limited
JSW Steel Service Centre (UK) Limited has slitting and
blanking facilities to cater to specific customer requirements. The latest
demand forecasts indicate massive processing overcapacity, in the industry as a
whole, reduced consumer demand and poor margins in the first half of FY 2010.
Given this situation, the Company has to respond to these market pressures and
at the same time generate revenues from the lowest possible cost base. It has
been decided that until the market improves significantly, the Company will
explore alternate Markets and opportunities.
During the year, JSW Steel Service Centre (UK) Limited
processed 11,143 tonnes of steel.
(c) JSW Panama Holdings Corporation and Chilean subsidiaries
namely Inversiones Eurosh Limitada,
During the financial year 2009-10, the feasibility studies
were carried out by the Subsidiary Company for starting beneficiation
operations using wet process. Preparation of Feasibility report for
beneficiation operations is in progress.
Considering rebound in commodity market leading to increase
in long-term Annual Price for FY 2010-11, the Subsidiary Company has decided to
commence mining under the dry method by contractual mining route.
Parallelly, the Subsidiary Company contemplates to commence
work on putting up wet beneficiation plant of 2.5 to 3 MTPA beneficiated ore to
be operational in FY 2011-12.
2. JSW Natural Resources Limited (JSWNRL) and its Subsidiary
JSW Natural Resources
JSW Natural Resources Limited was incorporated in
C.
JOINT VENTURE COMPANIES
1. Geo
Steel LLC
Georgia based Joint Venture Geo Steel LLC in which your
Company holds 49% equity through JSW Steel (Netherlands) B.V, has set up a
steel rolling mill in Georgia with annual production capacity of 175000 tonnes
in the industrial area of Rustavi in Georgia. Theplant became operational
during current year 2009-10. It is designed to produce rebar through hot
rolling process by using steel billets produced through the
Geo Steel had started commercial production with effect from
January 2010 and has produced 16260 tonnes of Billets and 7435 tonnes of Rebar
during the quarter January – March 2010. The Gross Turnover was USD 7.3 Million.
2.
Rohne Coal Company Private Limited
TheCompany holds 49% equity in Rohne Coal Company Private
Limited (JSW group is holding 69%, including that of the Company), which is a
joint Venture with three other partners (two partners from outside the Group).
This JV Company received the final allotment letter from the Government of
India for development of Rohne Coal Block. Mining plan has been approved by
Ministry of Coal. The application for Mining Lease is under consideration.
In-principle approval for railway siding for Coal Mine has been obtained from
East Central Railway. Environmental clearance has been recommended by the
Expert Appraisal Committee and the final clearance from Ministry of Environment
and Forests (MoEF) is awaited.
3. MJSJ Coal Limited
In terms of the Joint Venture Agreement to develop Utkal – A and Gopal Prasad (West) thermal coal block in Orissa, the Company agreed to participate in the 11% equity of newly formed MJSJ Coal Limited, Orissa along with four other partners. The Government of India has decided to allot 1,522 acres of Gopal Prasad west area to MJSJ Coal Limited. Mahanadi Coalfields Limited, a Public Sector Company holds 60% of the equity. Land acquisition is under progress.
4. Gourangdih Coal Limited
Ministry of Coal (MoC), Government of India has allocated
Gourangdih ABC Thermal coal block in the State of West Bengal having a
geological reserve of 131.7 million tonnes of thermal coal for captive mining
jointly by the Company and Himachal EMTA Power Corporation Limited (HEPL) by
working through a 50:50 Joint Venture Company for meeting their proportionate
share of requirement of coal. To pursue this objective, a JV Company,
Gourangdih Coal Limited (GCL), has been incorporated on 26th October 2009 with
its Registered Office in Kolkata.
5. Toshiba JSW Turbine and Generator Private
Limited
Toshiba JSW Turbine and Generator Private Limited was
incorporated with a shareholding of 75% by Toshiba Corporation Limited Japan,
20% by JSW Energy Limited and 5 % by the Company, to design, manufacture,
marketing and maintenance services of mid to large sized Supercritical Steam
Turbines and Generators of size 500 MW to 1000 MW.
Land lease agreement has been signed with Government of
Tamil Nadu for setting up of manufacturing facility of JV Company near Ennore
port, Chennai. Technology transfer agreement has been signed between Toshiba
Corporation,
6. Vijayanagar Minerals Private Limited (VMPL)
During the financial year 2009-10, VMPL supplied 1.76
million tones of
7. JSW
Severfield Structures Limited (JSSL) and its Subsidiary JSW Structural Metal
Decking Limited (JSWSMD)
JSSL a Joint Venture Company was incorporated on 19 March
2009, with 50:50 Equity participation by the Company and Severfield- Rowen
Mauritius Limited.
The Project having a capacity of 35000 tonnes per annum of
Structural Steelwork facility is being set up at Vijayanagar Works and is under
implementation.
JSSL will be engaged in design, fabrication and erection of
structural steelwork and ancillaries, including decking for construction
projects in
JSWSMD a downstream subsidiary company of JSSL being 67:33
joint venture with SMD Asia LLP,
D.
ASSOCIATE COMPANIES
Jindal
Praxair Oxygen Company Private Limited (JPOCL):
The oxygen plants of JPOCL have been working satisfactorily
primarily to meet the requirement of the steel plant operations at Vijayanagar
Works. During the financial year 2009-10, the combined production of the oxygen
plant module #1 and module # 2 of JPOCL was: gaseous oxygen – 1,009 million
Nm3; gaseous nitrogen – 309 million Nm3; Liquid oxygen – 8.8 million Nm3;
Liquid nitrogen – 14.8 million Nm3 and Argon – 12.5 million Nm3.
MANAGEMENT
DISCUSSION AND ANALYSIS
1] GLOBAL ECONOMY
The year 2009 witnessed the turbulence pain and panic from
the unprecedented Economic and Financial Crisis adversely impacting the Global
Economic growth. As per the IMF’s April-10 estimates, Global Economic growth in
2009 is estimated to contract by approx. 0.6%.
• Global Economy as per the IMF estimates of April10
contracted by approx. US$ 3.3 trillion while Chinese and Indian Economy
expanded by 8.7% & 7.2% respectively.
• Real Global Trade decelerated by 10.7% with Merchandize
Exports down in value-terms by approx. 23% to $ 12,147 Billion and Services by
13% to $ 3,312 Billion while China graduated from the 2nd rank to the highest
global merchandize exporter at US$ 1,201 Billion in 2009.
• Global automobile production contracted by approx. 15% to
60 Million units while China qualified as the World’s largest Producer at 13.6
Million units with highest ever domestic sale of Passenger cars of 10.3 Million
units up by 52.9%. Similarly, Indian Passenger Vehicle production and domestic
sales rose by 28% and 26% respectively in FY 2009-10.
The timely, cumulative stimulated economic efforts of all
Governments significantly curtailed the depth, span and intensity of the
economic catastrophic spread – although the possibility of few noted and
sovereign defaults continue to haunt the world in the near term.
The IMF estimates suggest a positive economic rebound in
2010 with the Global economy registering a 4.2% growth; Advanced economies and
the Emerging world growing by 2.3% and 6.3% respectively. Further the WTO
projects world trade to expand by 9.5% with the Advanced world growing by 7.5%
and the Emerging world by 11%.
2] GLOBAL STEEL INDUSTRY
Steel being at the core of economic progress witnessed an
unprecedented downturn in 2009. Advanced economies buckled under pressure of
large inventories coupled with stand still demand; the rest of the world
(excluding
CRUDE STEEL PRODUCTION
World crude steel production declined 8% from 1,329 million
tonnes in 2008 to 1,223 million tonnes for the year of 2009. Steel production
declined in nearly all the major steel producing countries and regions
including the EU, North America,
STEEL
CONSUMPTION
The global economic and financial crisis impacted steel
consumption – consumption declined 6.7% from 1,202 mn tonnes in 2008 to 1,121
mn tones in 2009. Of the consumption, 50% was flats (largely consumption led
demand) and 50% was long products (largely infrastructure driven demand). World
consumption of finished steel excluding BRIC countries registered a decline of
26.8% in 2009. Steel consumption of BRIC countries grew 18% largely due to the
massive consumption of steel from
Global Steel Trade
The impact of the global crisis loomed large on global trade
of steel which declined about 30% (estimated at 300 mn tonnes). This was
largely due to the relatively high dependence of the emerging world on advanced
world which collapsed under the pressure of the global meltdown. As a result,
the export dependency on the advanced world declined substantially which was
compensated by stimulated domestic demand in emerging economies especially
(3)
In 2009, the Chinese economy was driven largely by public
investment. The Chinese Government pumped in US$ 1.4 trillion as loan to the
economy (to industry and individuals) against US$ 0.6 trillion in 2008 which
facilitated infrastructure creation. Consequently, the fixed investment to GDP
ratio grew 58% in 2009 against 49% in 2008, the highest in three decades. In
line with the global meltdown,
The focus on the domestic market was reflected in a number
of statistics. Real incomes grew 9.8% in urban areas and 8.5% in rural areas.
Further, government incentivized car purchase scheme accelerated automotive
sales to 13.6 mn units (
Intelligent crisis management by the Chinese Government
strengthened its brand as the preferred investment destination, owing to which,
FDI into China declined only US$ 2 billion (from US$ 92 billion 2008 to US$ 90
billion 2009) compared with a 39% world-over decline and 47% collapse in
advanced economies. Consequently, even in a gloomy global scenario,
CHINESE
STEEL INDUSTRY
A large economy, building of world-class infrastructure with
the advantage of cheap labour is driving economic growth further fuelling mega
investments in
Chinese steel sector in 2009 – moving against the global
tide China’s net addition to its installed capacity in 2009 was 39 MTPA taking
its cumulative installed capacity to an estimated 716 MTPA; when more than 30%
of world steel capacity remaining non-operational across the globe. Chinese
steel manufacturers produced 568 mn tonnes of steel in 2009, an increase of 14%
from the 500 mn tonnes in 2008, setting a new benchmark for annual crude steel
production figure for a single country. As a result,
Domestic steel consumption grew 25% from 435 mn tonnes in
2008 to 542 mn tonnes in 2009 – due to sustained demand from the
infrastructure, automotive and housing sectors. The increased domestic
consumption resulted in a huge decline in steel exports – net exports declined
from 45 mn tonnes in 2008 to 2.4 mn tonnes in 2009.
In
Intensify restructuring: The steel sector is expected to stick
to market orientation, thus directing production when there is a demand.
Besides expansion and green field projects are forbidden.
Strengthen elimination campaign: Guide the steel makers to eliminate
obsolete capacity by law.
Standardize operation: Constituting
a regulation to meet standard qualifications of operation. This is expected to
decrease number of qualified steel makers; improve management efficiency and
promote healthy growth of the steel sector.
Actively promote MandA: Create
an environment conducive to MandA between steel makers voluntarily on fair and
legal basis. Superior and competitive Enterprises with competitive strengths
are encouraged to grow.
Increase effective steel supply: Rebar,
anti-quake steel, new structural steel that can replace low-end steel products
should be encouraged; and on the other, to strengthen awareness of the people
to save materials and increase comprehensive use of steel products.
(4) INDIAN ECONOMY
• Strong IIP Growth: 10.4%
• Core Infrastructure Industry Growth: 5.5%
• Automobile Production: 26%
Capitalizing on the high degree of domestic dependency, low
credit leverage and debt exposure and the Government’s thrust on infrastructure
creation are expected to accelerate the Indian economy in 2010-11 and beyond.
Preliminary guidance by the Central Government for the economic growth in
2010-11 is estimated at 8.2% and 9% in 2011-12.
(5) INDIAN STEEL
INDUSTRY
Indian steel industry stood out in the global steel industry due to its resilience during the downturn. While the steel production in the world dipped by 8% in 2009, it registered a growth of around 4% in this period.
This clearly demonstrates
UNAUDITED
FINANCIAL RESULTS FOR THE QUARTER ENDED 31.12.2010
(Rs.
In Millions)
|
Particulars |
Standalone Quarter Ended |
Standalone Half year ended |
|
31.12.2010 |
31.12.2010 |
|
|
Income
|
|
|
|
Domestic Turnover |
55281.300 |
149806.200 |
|
Export Turnover |
7583.300 |
24966.200 |
|
|
-- |
386.700 |
|
Total
|
62864.600 |
175159.100 |
|
Less: Excise Duty |
5150.400 |
13847.400 |
|
Net Sales |
57714.200 |
161311.700 |
|
(b) Other Operating Income |
361.300 |
1324.900 |
|
Total Income |
58075.500 |
162636.600 |
|
|
|
|
|
Expenditure |
|
|
|
a) (Increase) / Decrease in stock in trade and work in
progress |
1313.100 |
(4119.500) |
|
b) Consumption of raw materials |
35979.300 |
104198.600 |
|
c) Power and Fuel |
3008.600 |
8741.800 |
|
d) Employees cost |
1276.900 |
3977.500 |
|
e) Depreciation |
3463.600 |
9960.200 |
|
f) Other expenditure |
6495.900 |
18597.400 |
|
Total |
51537.400 |
141356.000 |
|
|
|
|
|
Profit from operations before other income and interest |
6538.100 |
21280.600 |
|
Other income |
78.900 |
740.000 |
|
Profit before interest |
6617.000 |
22020.600 |
|
Interest and Finance Charges |
1319.800 |
5423.700 |
|
Profit
before tax |
5297.200 |
16596.900 |
|
Tax expense |
1474.200 |
4816.800 |
|
Net
Profit after tax |
3823.000 |
11780.100 |
|
Paid up equity share capital (Face value of Rs.10/- per
share) |
2231.200 |
2231.200 |
|
Reserves excluding revaluation reserves |
-- |
-- |
|
Earning per share (EPS) |
|
|
|
(a)
Basic |
17.21 |
58.50 |
|
(b) Diluted |
16.97 |
57.62 |
|
Public shareholding |
|
|
|
Number of
shares |
138972546 |
138972546 |
|
Percentage
of shareholding |
62.29% |
62.29% |
|
|
|
|
|
Promoters and Promoters group Shareholding |
|
|
|
a) Pledged /Encumbered |
84144654 |
84144654 |
|
Number of shares |
15156886 |
15156886 |
|
Percentage of shares (as a % of total shareholding of the
promoter and promoter group) |
18.01% |
18.01% |
|
Percentage of shares (as a % of total share capital of the
company) |
6.79% |
6.79% |
|
|
|
|
|
b) Non Encumbered |
|
|
|
Number of shares |
68987768 |
68987768 |
|
Percentage of shares (as a % of total shareholding of the
promoter and promoter group) |
81.99% |
81.99% |
|
Percentage of shares (as a % of total share capital of the
company) |
30.92% |
30.92% |
SEGMENT
WISE REVENUE, RESULTS AND OTHER INFORMATION
(Rs.
In Millions)
|
Particulars |
Unaudited Quarter
Ended 31.12.2010 |
Unaudited Half
Year Ended 31.12.2010 |
|
1. Revenue by Business Segment |
|
|
|
Steel |
59677.300 |
166486.800 |
|
Power |
2671.900 |
8047.100 |
|
Total |
62349.200 |
174533.900 |
|
Less: Inter Segment revenue |
4273.700 |
11897.300 |
|
Total Income |
58075.500 |
162636.600 |
|
|
|
|
|
2. Segment results before Net
Finance Charges and Tax |
|
|
|
Steel |
5980.700 |
19362.900 |
|
Power |
636.300 |
2596.900 |
|
Total |
6617.000 |
21959.800 |
|
Less: Unallocable Items |
-- |
-- |
|
Net Finance Charge |
1319.800 |
5423.700 |
|
Unallocable Expenses net of
unallocable income |
0.000 |
(60.800) |
|
Profit before tax |
5297.200 |
16596.900 |
|
|
|
|
|
3. Segment Capital Employed (Segment assets less segment
liabilities) |
|
|
|
Steel |
231712.800 |
231712.800 |
|
Power |
16061.400 |
16061.400 |
|
Unallocated |
(80159.600) |
(80159.600) |
|
Total |
167614.600 |
167614.600 |
CONTINGENT
LIABILITIES NOT PROVIDED FOR IN RESPECT OF:
A) Bills Discounted Rs.12758.800 Millions
B) Guarantees provided on behalf of subsidiaries (including
step down subsidiaries) and others Rs.18182.400 Millions
C) Disputed statutory claims/levies including those pending
in courts (excluding interest leviable, if any), in respect of:
(i) Excise Duty Rs.966.700 Millions
(ii) Customs Duty Rs.1080.700 Millions
(iii) Income Tax Rs.124.700 Millions
(iv) Sales Tax/Special Entry tax Rs.3.500 Millions
(v) Service Tax Rs.244.600 Millions
(vi) Miscellaneous Rs.0.500 Millions
(vii) Levies by local authorities Rs.30.400 Millions
D) Claims by Suppliers and other third parties not
acknowledged as debts Rs.63.100 Millions
FIXED ASSETS:
·
·
·
Building
·
Plant and
Machinery
·
Furniture And
Fixtures
·
Vehicles and
Aircraft
·
Software
WEBSITE
DETAILS:
PROFILE:
JSW Steel, the flagship company of the JSW Group, is the largest
integrated private steel manufacturer in
In 1994, in order to achieve the vision of moving up the value chain and
building a strong, resilient company, Jindal Vijayanagar Steel (JVSL) was setup
with its plant located at Toranagallu in the Bellary-Hospet area in the State
of Karnataka, the heart of the high-grade iron ore belt and spread over 3,700
acres of land. JSW Steel, is today one of the low cost steel producers in the
world. It has grown to USD 2.50 billion in little
over a decade. It is been ranked 2nd among top 32 ‘World Class’ steelmakers by
World Steel Dynamic (June 2010). It also has a plant at
JSW Steel offers the entire gamut of steel products, pellets, slabs, HR
coils/ sheets, HR plates, CR coils, Galvanized coils/ sheets, Colour coated
coils/ sheets. It is the leading manufacturer of cold rolled, galvanized and
colour coated steel with manufacturing facilities at Vasind and Tarapur in
Forging ahead, Subject is one among the largest Indian Steel
Companies in
· ISO:9001 for Quality Management System
· ISO:14001 for Environment Management System
· OHSAS:18001 for Occupational Health and Safety Management System
PRESS
RELEASE:
Net profit (standalone) 4450.000 Millions on Highest ever sales in Q2
JSW Steel reported highest ever Sales both in volume
and value in second quarter of FY 2010-11. The Company’s flat steel production
showed a growth of 38% on the back of robust demand from Consumer durables and
Automobiles with declining sale of semis.
The key performance highlights are as under:
Q2 FY11 Vs Q2 FY10
Volume growth (Crude Steel Production) : 2%
Saleable Steel sold (Highest-ever) 9%
Net sales (Highest-ever) 25%
EBIDTA : 11560.000 Millions
Profit after tax : 4450.000 Millions
Total Net Debt gearing (Standalone) 0.48
Total Net Debt gearing (Consolidated) : 080
Operational Performance:
The Break-up of sales and production volumes
are as under:
|
|
(Million MT) |
(Million MT) |
Growth % |
|||
|
Products |
Q2 FY 11 |
Q2 FY 10 |
H1 FY11 |
H1 FY10 |
Q2 |
H1 |
|
Production: - Crude Steel |
1.571 |
1.541 |
3.144 |
2.917 |
2% |
8% |
|
Sales: |
|
|
|
|
|
|
|
- Semis |
0.086 |
0.405 |
0.193 |
0.716 |
-79% |
-73% |
|
- Rolled : Flat |
1.215 |
0.870 |
2.074 |
1.725 |
40% |
20% |
|
- Rolled : Long |
0.281 |
0.179 |
0.506 |
0.334 |
57% |
52% |
|
Total Saleable Steel |
1.583 |
1.454 |
2.774 |
2.775 |
9% |
-- |
During the quarter, sales of flat rolled
products was the quarterly highest at 1.215 million tons, mainly due to
additional production from the Phase I (3.5 MTPA) of the state-of-the art largest
and widest new Hot Strip Mill at Vijayanagar, which commenced commercial
production from April 10, 2010. Consequently, the Company achieved favorable
product- mix by reducing semis (cast products) sales.
The domestic sales constitutes 83% of the total
sales volumes as against 79% in the corresponding period of last year which is
in line with company’s strategy of increased focus in the domestic market. This
has been aided by higher sales through JSW Shoppe. The Retail Sales through
Shoppe accounted for 26% of domestic sales excluding semis. Value added
products sales volumes also went up during the quarter
Financial Performance:
The Turnover and Net Sales for the quarter
stood at 61839.000 Millions and 57128.400 Millions , respectively, showing a growth
of 28% and 25% over the corresponding quarter of previous year, mainly driven
by better product-mix and volumes. The EBIDTA for the quarter was 1,1555.300
Millions, including translation gain on foreign exchange amounting to ‘
1570.000 Millions and the EBIDTA margin for the quarter was 20%. The Company
posted a Profit after Tax of 4454.400 Millions
The Company’s total net debt gearing was at
0.48 (as against 1.15 as of 30t June 2010) and the weighted average interest
cost of Debt was lower at 6.25% (as against 7.67% as of 30th June 2010).
The Company reported Consolidated .Turnover,
EBIDTA and Profit after Tax of 63791.400 Millions, 11860.500 Millions and
3732.600 Millions, showing a growth of 27%, 10% and 16%,respectively, after incorporating
the financials of subsidiaries, joint ventures and associate.
The company prepaid Rupee term loan of
23300.000 Millions during the quarter and is planning to prepay further
5700.000 Millions in Q3 FY 11. The balance amount of 19010.000 Millions
received out of FCD issue to JFE is being used in lieu of drawal of tied up
expensive rupee loans to complete the 3.2 expansion project at Vijayanagar
Works The consolidated total net debt gearing was at 0.80 (as against 1.60 as
on 30.06.2010).
Projects:
The 3.2 MTPA expansion project at Vijayanagar
Works is progressing in full swing to expand the overall crude steel capacity
of the Company to 11 MTPA by March 2011. The company has started generation of
power at its 300 MW captive power plant (CPP3) and heating of two blocks out of
four blocks of Coke Oven-4, as part of 3.2 MTPA expansion project at
Vijayanagar works.
The implementation of another 300 MW Captive
Power Plant (CPP4) at Vijayanagar Works is also progressing satisfactorily, to
be commissioned in FY 2012.
Key developments:
1. Issue of Equity shares and GDR to JFE Steel Corporation,
During the quarter, pursuant to the terms of
the Subscription agreement entered into between the Company and JFE Steel
Corporation,
The Board has, subject to the approval of the
shareholders of the Company, approved the following:
a) Issue of upto 9,77,906 Equity Shares
(‘Investor Trariche 2 Shares”) to JFE on a preferential basis, without offering
the same to any other person, at a price per Investor Share equal to the higher
of; a price being a 10% premium to the minimum price at which the Shares are
permitted to be issued, as per the provisions of Chapter VII of the SEBI (Issue
of Capital and Disclosure Requirements) Regulations, 2009, (“SEBI
Regulations”); and 1,500
b) Issue of upto 3,085,814 non-voting,
non-transferable Global Depository Receipts (“Investor GDRs”) to JFE and issued
by the depository against 3,085,814 underlying Equity Shares issued by the
Company in the name of the custodian, at a price, which assuming 1 (One)
Investor GDR represents 1 (One) Equity Share, means a price per Investor GDR at
which the GDRs are permitted to be issued as per the Issue of Foreign Currency
Convertible Bonds and Ordinary Shares (Through Depository Receipt Mechanism)
Scheme, 1993, being the higher of the Indian rupee equivalent of:
• a 10% premium to the minimum price payable
under Applicable Law: and
• 1,500
The aforesaid issue of Equity Shares and GDRs
on a preferential basis would be subject to receipt of the approval of the
shareholders of the Company, SEBI Regulations as also of any other applicable
laws, rules, regulations, and guidelines, and such other consents and approvals
as may be required.
The Board of Directors has also approved to
obtain the consent of shareholders for the proposed issue of Equity Shares and
GDRs by way of a postal ballot.
2. Implementation of 4.5 MTPA Steel Plant in
Following the execution of Development Agreement
on January 11, 2007 with the Government of West Bengal (“GOWB”) to set up an
integrated iron and steel plant with a capacity of 10 MTPA in phases in the
State of
The Board has therefore approved the
Implementation of a 4.5 MTPA Steel plant in
The project will be planned to be commissioned
by 31/03/2014.
Outlook
The latest IMF
estimates once again upgrades the world GDP forecast to 4.8% for 2010,
supported by economic rebound in Emerging and developing economies at 7.1% and
turnaround in advanced economies with positive growth of 2.7%. Indian GDP
growth also remains above 8.5% with emphasis on domestic consumption.
Global consumption
is expected to increase by 13.1% in 2010 over 2009 as per latest Wortdsteel
estimates. The world crude steel production is showing declining trend from
peak level of May 2010. With the increase in real demand for steel products,
the steel prices are expected to remain stable.
About JSW Steel Limited
JSW Steel Limited, belonging to JSW group,
part of the 0 P Jindal Group, is one of the lowest cost steel producers in the
world. The group has diversified interest in mining, carbon steel, power,
industrial gases, port facilities, Aluminium, Cement and Information
Technology. JSW Steel Limited is engaged in manufacture of flat and long
products viz H R toils, C R Coils, Galvanised products, Galvalume products,
auto grade I white goods grade CRCA Steel, Bars and Rods. Incorporated in 1994,
it has grown to US $ 5 billion in little over a decade. JSW Steel Limited has the
largest galvanizing and colour coating production capacity in the country and
is the largest exporter of galvanized products with presence in over 100
countries across five continents.
The Board of JSW Energy Limited (JSWEL) in its
meeting held today at Mumbai approved the Results of quarter ended September
30, 2010 (Q2 FY2O1 1).
Key highlights for Q2’ FY 2011
• Achieved Commercial Operation Date (COD) of
the First Unit of 300 MW at Ratnagiri
• Achieved COD of Jaigad — New Koyna 400 KV
Double Circuit (Quad) Transmission line
• Refinanced high cost debt of Rs.10030.000
Millions achieving a reduction of 1.47%p.a in interest cost
• Net generation of 1 .78 billion kwh, up 47%
from previous corresponding period
• Total Income of Rs. 8460.000 Millions, up 50%
from previous corresponding period
• Consolidated net profit of Rs 1850.000
Millions, up 6% from previous corresponding period
• Awarded NDTV Profit Business Leadership
Award in Power Sector for 2010.
Key highlights for half year ended September 30, 2010 (
The company declared a consolidated net profit
of Rs 4830.000 Millions, highest ever net generation of 3.61 billion kwh,
highest ever Total Income of Rs. 17790.000 Milions for Hi FY20 1 1. that are
higher than that for the corresponding period of the pervious year by 81%. 1OB%
and 106% respectively
The performance highlights on consolidated
basis:
|
|
UOM |
Q2 FY 2011 |
Growth Over Q2 FY 2010 |
H1 FY 2011 |
Growth Over HY FY 2010 |
|
Net Generation |
Million Kwh |
1781.33 |
47.13% |
3607.88 |
108.38% |
|
Sales and Other Operating Income |
Rs. Millions |
8461.700 |
50.45% |
17785.600 |
105.95% |
|
EBITDA |
Rs. Millions |
3739.900 |
15.26% |
8568.100 |
70.44% |
|
PAT |
Rs. Millions |
1845.600 |
6.09% |
4832.000 |
80.58% |
Operational Performance
The PLF achieved by the company’s power plant
for Q2 FY 2011 is as under:
o Vijayanagar unit (860 MW) demonstrated their
consistent high level performance with PLF of 91%, despite taking shutdown for
the annual maintenance in July 2010 (130 MW) and Sept 2010 (300 MW). The
average PLF for Hi FY2O1 1 was 95%.
o The Ratnagiri Unit operated at PLF of 63%,
after achieving COD on September 1, 2010. This is due to line tripping and
teething troubles in stabilization of auxiliary facilities.
o Barmer unit was under annual maintenance and
other repairs from June 27, 2010 to August 23, 2010. After resuming generation,
the unit is operating at nearly 100% capacity.
The company achieved consolidated net
generation of 1,781 million units for the Q2 FY 2011 of which 1,141 million
units (64%) were sold in short term and the balance 640 million units were sold
under long term PPAs.
The net generation (million units) across the
different Plants was as under:
|
|
Q2 FY 11 |
H1FY 11 |
|
- Vijaynagar |
1595 |
3323 |
|
- Barmer |
63 |
161 |
|
- Ratnagiri |
123 |
123 |
Fuel
During Q2 FY2OI1, the company sourced the fuel
primarily through imported coal from
Financial Performance
The company has refinanced part of the debt
aggregating to RS. 10030.000 Millions as at September 30, 2010. The refinancing
of debt provides the company moratorium for repayment of debt and increased
tenure for repayment besides reduction in the interest rates of approx 1.47%
The Consolidated Net Worth and the
consolidated total debt as at September 30, 2010 were Rs. 52640.000 Millions
and Rs. 86340.000 Millions respectively, indicating a debt to equity ratio of
1.64.1.
Key Developments
A) The Board had approved the merger of 1200
MW power plant of JSWERL (JSW Energy Ratnagiri Limited) with the company under
section 391-394 of the Companies Act, 1956 subject to approval from lenders,
statutory authorities and Hon. High Courts. The Mumbai High Court has approved
the merger vide its order dated September 24, 2010 with appointed date as April
1, 2010.
B) 660 MW Expansion project at Vijayanagar
The Board has approved setting up of a660 MW
super critical technology based power plant at Vijayanagar. The expansion
project will be set up adjacent to the existing facility of 860MW. The company
is in the pross of obtaining necessary statutory consents / approvals.
The project will be based on imported coal and
will be designed to also use domestic coal, for which allotment linkage is
being sought. The existing infrastructural facilities will be adequate to meet
the enhanced fuel handling and water requirements for the proposed expansion.
The project cost is estimated at Rs. 33000.000
Millions, to be financed with a debt equity mix of 3:1. The zero date for the
project is envisaged to be April 2011 and the project is expected to be
completed in about 42 months.
C) Employee Stock Option Scheme (ESOS), 2010:
The Board has approved an ESOS, subject to
approval of shareholders through postal ballot, for issue of upto 2,00,00,000
stock options, convertible into equal number of Equity shares to the present and
future employees of the company and its subsidiaries and also to eligible
Directors of the company.
Projects Update:
a) Status of projects under Construction and
Implementation
(4 X 300) 1,200 MW — at Ratnagiri,
The second unit of 300 MW is expected to be
commissioned in November, 2010 and the progress for commissioning the third and
fourth units in the current financial year is progressing satisfactorily. The
total Project cost is estimated at Rs 56500.000 Millions, including the cost of
Flue Gas Desuiphuriser Unit being installed as per requirement of MOEF
approval. Project expenditure spent till September 30, 2010 is Rs. 40560.000
Millions.
(8 X 135) 1,080 MW — at Barmer, Rajasthan
The work on the other six units is progressing
satisfactorily, keeping in view the difficult site conditions the company is
targeting to achieve commissioning of the balance units by July. 2011. Total
Project cost is estimated at Rs 60850.000 Millions, including costs of increase
in unit size and elongated implementation period resulting in higher IDC.
Project expenditure spent till September 30, 2010 is Rs. 47900.000 Millions.
The approval for expansion projects of (2 x
135) 270MW at Barmer is awaited
(3 X 80) 240 MW — at Kutehr, Himachal Pradesh
The Project received Techno-Economic Clearance
from Central Electricity Authority (CEA) in August, 2010. The public hearing
for environmental clearance has already been held successfully and pre
qualification of vendors completed for main civil works. Land acquisition is
under progress. Total Project cost is approved by CEA at Rs 17980.000 Millions
(excluding cost of transmission line and premium payable to state government).
Project expenditure (including premium paid to state government) spent till
September 30, 2010 is Rs. 910.000 Millions
Jaigad Power Transco Limited
The work on 112 Km Transmission Line from
Jaigad to Karad is expected to be completed by February, 2011. The Project Cost
is appraised at Rs. 5800.000 Millions and as at September 30, 2010, an amount
of Rs. 3370.000 Millions has been spent. Barmer Lignite Mining Company Limited
Mine development activity has commenced at
Kapurdi mines and the first lignite is expected to be extracted in the 4th
quarter of FY2O1 1. The approval of land acquisition rates for the Jalipa Mines
from Government of Rajasthan (G0R) is awaited and the acquisition is expected
to be completed by December, 2010.
(b) Projects under Development
A 1320 MW Chattisgarh Project
The public hearing for the project was
successfully completed in August 2010 and application is being submitted to
seek MOEF approval. Land acquisition activity is progressing satisfactorily.
B 1620 MW
JSW Energy Bengal Limited, a SPV formed as
74:26 joint venture between JSWEL and JSW Bengal Steel Limited is planning to
implement 660MW Power plant under Phase-i, subject to receipt of necessary
approvals.
The key features are as under:
• 650 acres of land to be leased from JS’VBSL
• Atleast 51% of the power from the project
will be sold to JSWBSL and the remaining power will be available for sale.
• Thermal coal from lchhapur mines, to be
developed by JSW Natural Resources Bengal Limited, will be available as primary
fuel for the plant.
• The power project is estimated to cost Rs.
33000.000 Millions, while the mining project is expected to cost Rs. 15000.000
Millions.
• The entire project cost of 4,800 is to be
financed with a debt equity rates of 3. 1.
• Investment of Rs. 8880.000 Millions
estimated by JSWEL.
C 3200 MW Ratnagiri Project,
Land acquisition activity is progressing
satisfactorily.
Outlook:
The domestic growth continues to be robust, driven
by strong consumption lead growth on the back of good monsoon, while the global
recovery continues to be tepid. The domestic consumption led growth is expected
to increase the demand for power, even as capacity additions gather pace with
the participation of private sector. With incremental generation capacities
expected to come on stream, the outlook on availability of incremental domestic
fuel is not encouraging, necessitating increased import of thermal coal. Long
term fuel security is necessary to insulate against increase in the imported
coal prices which may put pressure on the margins.
About JSW Energy Limited:
JSW Energy Limited, part of the JSW Group is a
growing energy company. The Group has diversified interests in mining, carbon
steel, power, industrial gases, port facilities, aluminum, cement and
information technology. JSW Energy is working on power solutions in the states
of Karnataka,
PRESS RELEASE
19.02.2011
STEEL PRICE VOLATILITY LED BY DEMAND AND COST
PUSH
The global steel demand
has seen a growth in excess of 13% in the year 2010.
The revival in the
advanced economies and the consumption levels across all continents in the
world is propelling the demand for steel worldwide.
The Indian manufacturing growth remains positive driven by the
demand from key consumption sectors such as infrastructure, automotive,
consumer goods and housing, to name a few.
The demand for steel in
Rapid urbanization and spending on infrastructure within
The international market also has seen a steady rise in
steel demand and prices, and the global supply of finished steel also remains
well balanced.
The deluge in the Australian coal mines coupled with low
supplies of iron ore from
Going forward, due to this cost push of the input raw
materials, steel prices are likely to see further increase in the coming
months.
Forward looking and Cautionary Statements:
Certain statements in this release concerning our future growth
prospects are forward looking statements, which involve a number of risks, and
uncertainties that could cause actual results to differ materially from those
in such forward looking statements. The risks and uncertainties relating to
these statements include, but are not limited to, risks and uncertainties
regarding fluctuations in earnings, our ability to manage growth, intense
competition within Steel Industry including those factors which may affect our
cost advantage, wage increases in India, our ability to attract and retain
highly skilled professionals, time and cost overruns on fixed-price, fixed-time
frame contracts, client concentration, restrictions on immigration, our ability
to manage our internal operations, reduced demand for steel, our ability to
successfully complete and integrate potential acquisitions, liability for
damages on our service contracts, the success of the companies in which – has
made strategic investments, withdrawal of fiscal governmental incentives,
political instability, legal restrictions on raising capital or acquiring
companies outside India, unauthorized use of our intellectual property and
general economic conditions affecting our industry. The Company does not
undertake to update any forward looking statements that may be made from time
to time by or on behalf of the Company.
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No records 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.44.45 |
|
|
1 |
Rs.71.59 |
|
Euro |
1 |
Rs.63.01 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
8 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT LINES |
1~10 |
7 |
|
--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 |
|
66 |
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 |
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 |
|
-- |
NB |
New Business |
-- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.