MIRA
INFORM REPORT
|
Report Date : |
16.08.2011 |
IDENTIFICATION DETAILS
|
Name : |
JSW ISPAT STEEL LIMITED (w.e.f. 28.06.2011) |
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Formerly Known
As : |
ISPAT INDUSTRIES
LIMITED |
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Registered
Office : |
“ |
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Country : |
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Financials (as
on) : |
30.06.2010 |
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Date of
Incorporation : |
23.05.1984 |
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Com. Reg. No.: |
21-037519 |
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Paid-up Capital : |
Rs. 22250.900 Millions
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CIN No.: [Company
Identification No.] |
L27106WB1984PLC037519
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TAN No.: [Tax
Deduction & Collection Account No.] |
CALI01452D |
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PAN No.: [Permanent
Account No.] |
AAACI6293E |
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Legal Form : |
Public Limited
Liability Company. The company’s
shares are listed on the Stock Exchanges. |
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Line of
Business : |
Manufacturing and
Selling of galvanized coils/ sheets, cold rolled carbon steel sheets/coils, direct
reduced iron and PVC coated sheets |
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No. of Employees : |
3000
(approximately) |
RATING & COMMENTS
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MIRA’s Rating : |
Ba (50) |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Maximum Credit Limit : |
USD 63000000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Usually Correct |
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Litigation : |
Clear |
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Comments : |
Subject is a part of Jindal Group. It is a well established and reputed company having satisfactory
track. Trade relations are reported as fair. Business is active. Payments are
reported to be usually correct and as per commitments. The company can be considered normal for business dealing 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
|
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 |
LOCATIONS
|
Registered
Office : |
“ |
|
Tel. No.: |
91-33-2249 2213 /
3119 / 5102 / 5104 / 2249 1011 / 30265000 |
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Fax No.: |
91-33-22491956 |
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E-Mail : |
ispat.park@ndil.sprintrpg.ems.vsnl.net.in |
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Website : |
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Central
Marketing Office : |
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Tel. No.: |
91-22-2758 2500 / 2600 / 2700 |
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Fax No.: |
91-22-2757 7959 / 7972 |
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E-Mail : |
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Corporate Office : |
7th Floor, Nirmal, Nariman Point, Mumbai - 400 021, |
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Tel. No.: |
91-22-66542222 |
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Fax No.: |
91-22-22855519 |
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E-Mail : |
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Factory 1 : |
Cold Rolling Mill and Coating Plant
Complex: A-10/1 and 10/ 2, MIDC
Industrial Area, Kalmeshwar – 441 501, District |
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Factory 2 : |
Sponge Iron Plant: Geetapuram, Dolvi – 402
107, Taluka Pen, District Raigad, |
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Factory 3 : |
Hot Strip Mill Plant: Gettapuram, Dolvi – 402
107, Taluka Pen, District Raigad, |
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Factory 4 : |
Blast Furnace Plant: Geetapuram,
Dolvi-402 107, Taluka Pen, District Raigad, |
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Branches/
Depots/ Consignment Agents : |
Located at: ·
·
Guwahati ·
Kolkata ·
·
·
·
Mumbai ·
Pune ·
·
·
·
·
·
·
·
Karnal ·
·
Parwanoo ·
·
Chennai ·
·
·
Hubli |
DIRECTORS
As On 30.06.2010
|
Name : |
Mr. Pramod M.
Mittal |
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Designation : |
Chairman |
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Name : |
Mr. Vinod Mittal |
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Designation : |
Vice Chairman and
Managing Director |
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|
Name : |
Mr. Udipi Mahesh
Rao |
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Designation : |
Director |
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Name : |
Dr. Basudeb Sen |
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Designation : |
Director |
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Date of Birth/Age : |
16.06.1948 |
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Qualification : |
M.A. (Economics), Ph. D |
|
Expertise in
specific functional areas : |
Strategic Planning, Risk Management Systems, Investment
Porfolio Management, Fund Marketing, Credit/Project appraisal etc. |
|
Date of Appointment : |
30.06.2008 |
|
Other Directorship : |
·
ITC Limited ·
South Asian
Petrochem Limited ·
Gujarat NRE
Coke Limited ·
Sumedha Fiscal
Services Limited ·
SREI Venture
Capital Limited ·
Mahanagar Gas
Limited ·
Synergy
Insurance Broking Services (private) Limited |
|
|
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Name : |
Mr. Vinod Garg |
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Designation : |
Executive Director (Commercial) |
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Date of Birth/Age : |
05.06.1956 |
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Qualification : |
B.Com., FCA |
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Expertise in
specific functional areas : |
Marketing and Operations |
|
Date of Appointment : |
21.04.1998 |
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Other Directorship : |
Steelscape Consultancy
Private Limited |
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Name : |
Mr. Anil Sureka |
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Designation : |
Executive Director (Finance) |
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Date of Birth/Age : |
19.11.1955 |
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Qualification : |
B.Com, ACS |
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Expertise in specific
functional areas : |
Finance, Accounts and Secretarial |
|
Date of Appointment : |
01.02.2001 |
|
Other Directorship : |
·
Ispat Energy
Limited ·
Andhra Global
Pellets Limited ·
Halla Energy
and Environment ( ·
Ispat Jharkhand
Steels Limited ·
Hasya Trading
and Investments Private Limited |
|
|
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|
Name : |
Mr. B.K. Singh |
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Designation : |
Executive Director (Steel Plant) |
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Date of Birth/Age : |
02.02.1944 |
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Qualification : |
B.E. (Mechanical) |
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Experience : |
Plannning, Operations, Project
implementation, Quality assurance etc. |
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Date of Appointment : |
01.05.2008 |
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Name : |
Mr. M.
Sankaranarayanan |
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Designation : |
Nominee - UTI |
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Name : |
Ms. Manju Jain |
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Designation : |
Nominee (IFCI Limited) |
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Name : |
Mr. S |
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Designation : |
Nominee (IDBI Bank Limited) |
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Name : |
Mr. Mayank Agrawal |
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Designation : |
Nominee (ICICI Bank Limited) |
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Name : |
Mr. Vinod Kothari |
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Designation : |
Director |
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Name : |
Mohan Lal Mittal |
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Designation : |
Chairman Emeritus |
KEY EXECUTIVES
|
Name : |
Mr. T. P.
Subramanian |
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Designation : |
President and Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As On 30.06.2011
|
Names of
Shareholders |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
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|
6,441,236 |
0.27 |
|
|
1,394,274,230 |
58.42 |
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|
1,400,715,466 |
58.69 |
|
|
|
|
|
|
677,576 |
0.03 |
|
|
269,071,893 |
11.27 |
|
|
269,749,469 |
11.30 |
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Total shareholding of Promoter and Promoter Group (A) |
1,670,464,935 |
69.99 |
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(B) Public Shareholding |
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|
|
|
|
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1,823,464 |
0.08 |
|
|
105,914,590 |
4.44 |
|
|
12,768 |
- |
|
|
48,308,107 |
2.02 |
|
|
74,197,457 |
3.11 |
|
|
230,256,386 |
9.65 |
|
|
|
|
|
|
102,451,967 |
4.29 |
|
|
|
|
|
|
283,748,972 |
11.89 |
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|
62,168,785 |
2.60 |
|
|
37,601,173 |
1.58 |
|
|
28,075,624 |
1.18 |
|
|
1,732,800 |
0.07 |
|
|
1,264,740 |
0.05 |
|
|
30,145 |
- |
|
|
2,238,308 |
0.09 |
|
|
4,228,756 |
0.18 |
|
|
300 |
- |
|
|
30,500 |
- |
|
|
485,970,897 |
20.36 |
|
Total Public shareholding (B) |
716,227,283 |
30.01 |
|
Total (A)+(B) |
2,386,692,218 |
100.00 |
(1) Indian
Individuals / Hindu Undivided Family
Individual shareholders holding nominal share
capital up to Rs.0.100 Million BUSINESS DETAILS
|
Line of Business : |
Manufacturing and
Selling of galvanized coils/ sheets, cold rolled carbon steel sheets/coils, direct
reduced iron and PVC coated sheets. |
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Product : |
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PRODUCTION STATUS (As on 30.06.2010)
|
Particulars |
Unit |
Installed
Capacity |
Actual
Production |
|
Direct Reduced
Iron |
MT |
2000000 |
1683919 |
|
Hot Rolled Coils |
MT |
4125000 |
3314677 |
|
Cold Rolled
Carbon Steel Sheets/Coils |
MT |
412500 |
303649 |
|
Galvanised
Coils/Sheets# |
MT |
281250 |
202686 |
|
Galvalume
Coils/Sheets# |
MT |
125000 |
32039 |
|
PVC Coated Sheets |
MT |
75000 |
75840 |
|
Tubes and Pipes |
MT |
70000 |
28891 |
|
Pig Iron/ Hot
Metal |
MT |
2500000 |
2131184 |
Notes:
(a) Licensed Capacity is not applicable as the industry is delicensed.
(b) Certified by the Company’s Technical Experts.
# During the period, 100,000 MT installed capacity of Galvanising unit has
been converted into Galvalume line, which has started its commercial production
w.e.f. 25.062009
GENERAL INFORMATION
|
No. of Employees : |
3000
(approximately) |
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Bankers : |
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Facilities : |
Notes: A. During the
period, the Company has fully redeemed the remaining portion of Rs 810.300
millions with respect to 8% Non-Convertible Debentures of the face value of
Rs. 4277.800 millions, which were secured by a first legal mortgage/equitable
mortgage on the Company’s immovable properties and pari-passu first charge by
way of hypothecation of all the moveable properties of the Company (save and
except book debts) including moveable machinery, machinery spares, tools and
accessories both present and future, subject to prior charges created in
favour of the Company’s bankers on the stock of raw materials, finished
goods, work in process, consumable stores and book debts for securing borrowings
for working capital requirements. The trustees for
debenture holders have released the above securities on redemption of
debentures. B. (i) The Rupee
and Foreign Currency Term Loans from Financial Institutions and Banks, are secured
by way of equitable mortgage by deposit of title deeds of the Company’s
immovable properties at Geetapuram (Dolvi) and by mortgage of leasing rights
in the immovable properties at Kalmeshwar (Nagpur) both in the State of
Maharashtra and a first charge by way of hypothecation of the Company’s
movables (save and except book debts) including movable machinery, machinery
spares, tools and accessories, (both present and future), subject to prior
charges created in favour of the Company’s bankers on the stock of raw
materials, finished goods, process stock, consumable stores and book debts
for securing working capital facilities. (ii) The above
Term Loans are also secured by way of english mortgage of the title in the
Landed property at Mumbai, which was sold by the Company to Peddar Realty
Private Limited (PRPL) in an earlier year. The Company’s title is subject to
the rights and interest of PRPL. The indenture of mortgage has been jointly
signed by the Company and PRPL. These term loans are further secured by the corporate
guarantee and pledge of entire shareholdings of PRPL. (iii) All the
mortgages and charges created in favour of the Financial Institutions and
Banks rank pari-passu inter se, except where specifically stipulated
otherwise. (iv) A second
charge on the fixed and current assets has been created in favour of the
working capital lenders and term loan lenders respectively. (v) Term Loans
are also secured by the pledge of a part of the shareholding of the promoters
as well as by the personal guarantees of Mr. Pramod Mittal and Mr. Vinod
Mittal, directors of the Company. Term loans aggregating to Rs. 1430.000
millions (Rs. 1430.000 millions) are also secured by personal guarantee of
Mr. M. L. Mittal, a former director of the Company. (vi) Term Loans
of Rs. 1436.800 millions (Rs 1436.800 millions) are further secured by the
Corporate Guarantee of Navoday Consultants Limited C. Cash Credit
and other working capital facilities from Banks are secured by the
hypothecation of raw materials, finished goods, process stock, consumable
stores, book debts, etc. (both present and future), and second charge over
the entire fixed assets of the Company. The working capital facilities from
banks, are also secured by personal guarantees of Mr. Pramod Mittal and Mr.
Vinod Mittal, directors of the Company. A part of the cash credit and other
facilities from Punjab National Bank and Bank of India are also secured by
personal guarantee of Mr. M. L. Mittal, a former director of the Company. D. Term Loans
aggregating to Rs. 8696.800 millions (Rs. 1189.900 millions) are repayable
within one year.
* Includes amount falling due for payment within one year Rs.14.600 millions
(Rs. 1780.500 Millions) |
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Banking
Relations : |
-- |
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|
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Auditors : |
|
|
Name : |
S. R. Batliboi
and company Chartered
Accountants |
|
Address : |
22, |
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Subsidiary
Companies : |
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Associates Companies : |
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Joint Venture Company : |
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Enterprises over which Key Management Personnel / Share Holders / Relatives have significant influence |
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CAPITAL STRUCTURE
As On 30.06.2010
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
4000000000 |
Equity Shares |
Rs.10/- each |
Rs.40000.000 millions |
|
100000000 |
Preference Shares
|
Rs.100/- each |
Rs.10000.000 millions |
|
1000000000 |
Preference Shares
|
Rs.10/- each |
Rs.10000.000 millions |
|
|
Total
|
|
Rs.60000.000
millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
1222442218 |
Equity Shares |
Rs.10/- each |
Rs.12224.400
millions |
|
|
Less : Allotment and Call Money
in Arrears |
|
Rs.7.300 millions
|
|
|
Due from other
than Directors) (A) |
|
Rs.12217.100
millions |
|
4,31,99,500 |
12% Cumulative Redeemable Preference Shares (CRPS)of Rs.100 each fully
paid-up (Redeemable at par in Thirteen annual installments commencing from
31.03.2020) Less: Redeemed |
Rs.100/- each |
Rs.4319.900
millions Rs.691.200
millions |
|
|
|
|
Rs.3628.700
millions |
|
15,51,12,156 |
10% Cumulative Redeemable Preference Shares (CRPS) of Rs.10 each fully
paid-up (Redeemable at par in Eight quarterly installments commencing from 15.06.2018) |
Rs.10/- each |
Rs.1551.100
millions |
|
48,59,08,844 |
0.01% Cumulative Redeemable Preference Shares (CRPS)of Rs.10 each
fully paid-up (Redeemable at par in Eight quarterly installments commencing
from 15th June 2018) |
Rs.10/- each |
Rs.4859.100
millions |
|
|
|
|
Rs.10038.900 millions |
|
|
Less :Allotment and Call Money
in Arrears |
|
Rs.5.100 millions |
|
|
(Due from other
than Directors) (B) |
|
Rs.10033.800 millions |
|
|
(A+B) |
|
Rs.22250.900 millions |
Note:
Out of above 18,31,09,080
equity shares of Rs. 10 each, 1,36,00,000 12 % CRPS of Rs. 100 each and
12,20,72,720 0.01% CRPS of Rs. 10 each, fully paid up, were issued for
consideration other than cash.
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES
OF FUNDS
|
30.06.2010 (15th
Months) |
31.03.2009 |
31.03.2008 |
|
|
SHAREHOLDERS
FUNDS |
|
|
|
|
|
1] Share Capital |
22250.900 |
22725.100 |
22940.300 |
|
|
2] Share
Application Money |
180.000 |
519.800 |
0.000 |
|
|
3] Reserves &
Surplus |
14718.300 |
15444.800 |
16535.800 |
|
|
4] (Accumulated
Losses) |
(21342.300) |
(18321.500) |
(10460.000) |
|
NETWORTH
|
15806.900 |
20368.200 |
29016.100 |
|
|
|
|
|
|
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
71569.000 |
71512.800 |
69400.500 |
|
|
2] Unsecured
Loans |
248.500 |
2002.400 |
2849.900 |
|
TOTAL BORROWING
|
71817.500 |
73515.200 |
72250.400 |
|
|
DEFERRED TAX
LIABILITIES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
TOTAL
|
87624.400 |
93883.400 |
101266.500 |
|
|
|
|
|
|
|
APPLICATION OF FUNDS
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block]
|
79273.500 |
88878.100 |
92060.100 |
|
Capital work-in-progress
|
637.300 |
985.200 |
1082.500 |
|
|
|
|
|
|
|
|
Pre-operative & Trial Run Expenses |
0.000 |
41.900 |
0.000 |
|
INVESTMENT
|
2293.700 |
2328.900 |
1180.400 |
|
DEFERREX TAX ASSETS
|
9642.800 |
9501.300 |
5465.700 |
|
Foreign Currency Monetary Item Translation Difference
Account
|
20.800 |
49.400 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
19341.700 |
13829.300 |
13683.800 |
|
|
Sundry Debtors |
7589.700 |
5641.800 |
5798.300 |
|
|
Cash & Bank Balances |
2030.600 |
793.900 |
925.200 |
|
|
Other Current Assets |
0.000 |
0.000 |
0.000 |
|
|
Loans & Advances |
7968.700
|
9273.300
|
8340.600
|
|
Total
Current Assets |
36930.700
|
29538.300
|
28747.900
|
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
18289.700
|
18348.900
|
|
|
|
Other Current Liabilities |
22519.600
|
18740.800
|
26936.700
|
|
|
Provisions |
365.100
|
350.00
|
333.400
|
|
Total
Current Liabilities |
41174.400
|
37439.700
|
27270.100
|
|
|
Net Current Assets |
(4243.700)
|
(7901.400)
|
1477.800
|
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
87624.400 |
93883.400 |
101266.500 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
30.06.2010 (15th
Months) |
31.03.2009 |
31.03.2008 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
101327.300 |
81319.800 |
82841.400 |
|
|
|
Other Income |
4459.600 |
4058.600 |
4268.600 |
|
|
|
TOTAL (A) |
105786.900 |
85378.400 |
87110.000 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Increase/Decrease in Finished Goods |
(2695.300) |
1050.500 |
1591.600 |
|
|
|
Excise Duty & Cess on Stocks
|
295.400 |
(189.300) |
(9.700) |
|
|
|
Raw Materials Consumed |
58952.500 |
46508.400 |
45358.300 |
|
|
|
Purchases of Finished Goods |
0.000 |
0.000 |
107.100 |
|
|
|
Personal Cost |
2733.600 |
2076.000 |
2026.000 |
|
|
|
Manufacturing,
Selling & Distribution &
Administrative Expenses |
29271.300 |
21625.500 |
22006.800 |
|
|
|
TOTAL (B) |
88557.500 |
71071.100 |
71080.100 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
17229.400 |
14307.300 |
16029.900 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
12854.500 |
11593.000 |
8492.500 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
4374.900 |
2714.300 |
7537.400 |
|
|
|
|
|
|
|
|
|
Less |
DEPRECIATION/
AMORTISATION (F) |
7739.500 |
6466.200 |
6381.200 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
(3364.600) |
(3751.900) |
1156.200 |
|
|
|
|
|
|
|
|
|
Less |
TAX (I) |
(141.200) |
3129.200 |
808.200 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-I) (J) |
(3223.400) |
(6881.100) |
348.000 |
|
|
|
|
|
|
|
|
|
Add / Less |
DEBENTURE
REDEMPTION RESERVE WRITTEN BACK |
(202.600) |
(277.100) |
|
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
(18321.500) |
(10460.000) |
|
|
|
|
|
|
|
|
|
|
Add |
ADJUSTMENTS |
|
|
|
|
|
|
(A) TOWARDS EXCHANGE DIFFERENCES OF 2007-08
TRANSFERRED TO FIXED ASSETS (NET OF DEPRECIATION RS. 64.400 MILLIONS AND DEFERRED
TAX CREDIT OF RS. 632.300 MILLIONS) |
0.000 |
(1228.100) |
NA |
|
|
|
|
|
|
|
|
|
|
(B) TOWARDS EXCHANGE DIFFERENCES OF 2007-08
TRANSFERRED TO FOREIGN CURRENCY MONETARY ITEM TRANSLATION DIFFERENCE ACCOUNT (NET
OF AMORTISATION RS. 14.800 MILLIONS AND DEFERRED TAX CREDIT OF RS. 15.200
MILLIONS) |
0.000 |
(29.400) |
NA |
|
|
|
|
|
|
|
|
|
|
BALANCE CARRIED
TO THE B/S |
(21342.300) |
(18321.500) |
NA |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export Earnings |
4334.400 |
7198.500 |
|
|
|
|
Vessel Rentals |
0.000 |
24.100 |
|
|
|
TOTAL EARNINGS |
4334.400 |
7222.600 |
8644.600 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
30464.700 |
25669.200 |
21905.300 |
|
|
|
Stores & Spares |
2896.000 |
1843.600 |
1418.300 |
|
|
|
Capital Goods |
737.900 |
102.400 |
393.900 |
|
|
TOTAL IMPORTS |
34098.600 |
27615.200 |
23717.500 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
(3.37) |
(6.25) |
(0.36) |
|
QUARTERLY
RESULTS
|
PARTICULARS |
30.09.2010 |
31.12.2010 |
31.03.2011 |
|
Type |
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
|
Sales Turnover |
21845.800 |
9783.700 |
27218.800 |
|
Total Expenditure |
22611.700 |
11478.700 |
23151.400 |
|
PBIDT (Excl
OI) |
(765.900) |
(1695.000) |
4067.400 |
|
Other Income |
0.000 |
0.000 |
0.000 |
|
Operating
Profit |
(765.900) |
(1695.000) |
4067.400 |
|
Interest |
2645.000 |
2744.300 |
1880.000 |
|
Exceptional
Items |
0.000 |
0.000 |
0.000 |
|
PBDT |
(3410.900) |
(4439.300) |
2187.400 |
|
Depreciation |
1544.100 |
1462.200 |
1482.900 |
|
Profit
Before Tax |
(4955.000) |
(5901.500) |
704.500 |
|
Tax |
(1638.800) |
(18.08.400) |
2.700 |
|
Reported PAT |
(3316.200) |
(4093.100) |
701.800 |
|
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 |
(3316.200) |
(4093.100) |
701.800 |
KEY RATIOS
|
PARTICULARS |
|
30.06.2010 (15 Months) |
31.03.2009 |
31.03.2008 |
|
PAT / Total Income |
(%) |
(3.05)
|
(8.06)
|
0.40
|
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
(3.32)
|
(4.61)
|
1.40
|
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
(2.90)
|
(3.17)
|
0.94
|
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
(0.21)
|
(0.18)
|
0.04
|
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
7.15
|
5.45
|
3.43
|
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
0.90
|
0.79
|
1.05
|
LOCAL AGENCY FURTHER INFORMATION
HISTORY
Subject is one of the integrated steel makers and the
largest private sector producer of hot rolled coils in
FINANCIAL RESULTS:
Income from
operations during the fifteen-month period was Rs.109831.400 millions and
profit before interest, finance charges and depreciation was Rs.17229.400
millions. After providing for interest and finance charges of Rs.12854.500
millions, profit before depreciation was Rs.4374.900 millions. After providing
for depreciation of Rs.7739.500 millions, loss before tax provisions was
Rs.3364.600 millions for the period.
After considering
deferred tax credit of Rs.141.500 millions and providing for wealth tax
Rs.0.300 millions, net loss during the period was Rs.3223.400 millions.
Considering Debenture Redemption Reserve written back Rs.202.600 millions and
accumulated losses of Rs.18321.500 millions brought forward from the previous
year, the accumulated losses as at 30.06.2010 was Rs.21342.300 millions. The
losses are proposed to be carried to next year’s accounts.
FINANCIAL YEAR
The financial year
of the Company has been extended by a period of 3 (three) months upto
30.06.2010. Accordingly, the Company’s financial year 2009-10 is for a period
of 15 (fifteen) months, 01.04.2009 to 30.06.2010.
OPERATIONS
The deep economic
recession had resulted in a negative global GDP during the year 2009. World
economy has since regained certain stability and modest growth rates are being
witnessed in the economies of developed countries. On the other hand, countries
in the developing world have, however, registered relatively high levels of
economic growth and robust domestic markets.
Global steel
industry had witnessed an unprecedented dip in demand and sharp decline in
prices during the period of economic meltdown. Global steel production had
declined by 8% during 2009 and consumption was lower by 6%, notwithstanding the
visible rebound during second half of 2009. Backed by fiscal stimulus-led
global economic recovery, steel industry has since demonstrated visible signs
of demand pick-up and price stabilization during the last quarter of year 2009.
The current year, so far, has seen a marked increase in domestic steel demand
led by impressive growth in vital end-user segments, such as, automobile and
consumer goods. While developed economies had faced slow economic recovery,
During the period,
the Company sought to consolidate its efforts towards optimizing productivity
and innovating its product basket. Production of Hot Rolled Coils at 3.31
Million MTs was higher by 24% compared to the previous financial year, on an
annualized basis. Capacity utilization was over 80% of the enhanced annual
capacity of 3.3 Million MTs. Production of Direct Reduced Iron (Sponge Iron) at
1.68 Million MTs was higher by 23% over the previous financial year, on an
annualized basis. Efforts undertaken by the Company towards securing additional
supplies of Natural Gas had resulted in improved production of Direct Reduced
Iron during the year.
Production of Hot
Metal was higher at 2.13 Million MTs. Up gradation of Blast Furnace during 2009
has resulted in significant improvement in process efficiencies and new
benchmarks are being set on all production parameters. Production of Cold
Rolled Steel Coils/Sheets and Galvanized Coils/Sheets had registered increase
at 0.31 Million MTs and 0.20 Million MTs, respectively. In its endeavour to
continually offer superior products, the Company has added Galvalume, a premium
metallic-coated steel product, to its product-basket. Galvaume finds extensive
application in corrosion and temperature resistance. Production of Galvalume
Coils/Sheets has been streamlined during the period. Production of Tubes and
Pipes had also stabilized during the period. Production of PVC coated sheets
during the period was at 101% of installed capacity. Sales of Hot Rolled Coils
at 2.88 Million MTs was higher by 19%, compared to previous year, on an
annualized basis. Sales of Cold Rolled Steel Coils/Sheets was higher by 11%,
whereas sales of Galvanized Coils/Sheets was lower by 7%, compared to previous
year, on an annualized basis. Sales of Tubes and Pipes was commensurate with
production achieved during the period.
During the period,
prices of basic inputs, namely, iron ore, coke and pellets had increased
substantially. Simultaneously, prices of utilities, such as, natural gas and
energy, had also gone up. This had resulted in lower margins with consequential
impact on the Company’s financial results.
EXPORTS:
Export earnings
during the period was Rs.4334.400 Millions. Exports were lower during the
period due to slack demand conditions in the
PROJECTS:
The coke oven
project of the annual capacity of 1 Million MTs, undertaken in joint venture,
has been appraised at a cost of Rs.11240.000 Millions. Debt component of the project
is expected to be tied-up shortly. The project is expected to be commissioned
within a period of 24 months from achievement of financial closure. Initial
development activities have already commenced in the proposed iron ore pellet
project of 2 Million MTs. The Company has, simultaneously, entered into
long-term supply contract with a major producer of iron ore pellets, so as to
effectively secure its input requirements. The Company has obtained a
prospective license for mining of iron ore in Damkodwadvi area of Bhamragarh in
the state of
Initial activities
have also been undertaken by the respective Wholly-Owned Subsidiaries in the
proposed iron ore and coal mining projects overseas. The Company had entered
into separate Memoranda of Understanding (MOU) with the respective Governments
of Jharkhand and Chattisgarh for setting-up an integral steel plant (annual
capacity of 2.8 Million MTs) and coal-based thermal power plant (annual
combined capacity of 1200 MW). Site selection activities are in the progress
for the integrated steel plant proposed in the state of Jharkhand. The state
government has been approached to allocate alternate iron ore mines,
commensurate with the size of the project. Progress in implementation of the
coal-based thermal power plant in the state of Chattisgarh has slowed down due
to delays in grant of coal linkage by the government.
CAPTIVE POWER
PLANT OF ISPAT ENERGY LIMITED:
Due to certain
unforeseen delays in achieving financial closure, the schedule for
implementation of the 110 MW Power Plant by Ispat Energy Limited, the Company’s
wholly-owned subsidiary, has been further delayed. The project, proposed to be
implemented in two separate phases of 55 MW each, is now scheduled to be
commissioned during early 2012. The cost of the project is estimated at
Rs.4910.000 Millions. Financial closure of the project is expected to be
achieved shortly.
MANAGEMENT
DISCUSSION AND ANALYSIS:
INDUSTRY STRUCTURE
AND DEVELOPMENTS:
Global Steel
Industry
After two years of
deep economic recession, signs of economic stability are now visible in the
developed world. Though growth rates in the economies of developed world are
still moderate, countries in the developing region, in contrast, have been
registering high GDP growth. IMF estimates a positive economic trend in 2010
and the global economy to register a sharp 4% growth. The WTO also projects
world trade to expand by 9%, with the developed regions growing by nearly 8%
and the emerging regions by over 11%. Following the world-wide economic crisis,
the steel industry had demonstrated visible signs of demand pick-up and price
stabilization during the last quarter of 2009. However, as a result of the deep
recession through most of the year, global crude steel production had dipped by
8% during 2009 in comparison to the previous year. Major steel producing
countries, such as,
Due to the
widespread economic recession, global steel consumption had declined by nearly
7% during 2009, in comparison to the previous year. Finished steel consumption
during 2009 was 1121 Million Tons. Steel consumption in
Indian Steel Scenario:
Latest projections
of steel consumption by World Steel Association peg finished steel consumption
in
PRODUCT / SEGMENT
PERFORMANCE:
Production of Hot
Rolled Coils at 3.31 Million MTs was higher by 24% compared to the previous
financial year, on an annualized basis. Capacity utilization was over 80% of
the enhanced annual capacity of 3.3 Million MTs. Production of Direct Reduced
Iron (Sponge Iron) at 1.68 Million MTs was higher by 23% over the previous
financial year, on an annualized basis. Securing additional supplies of Natural
Gas had resulted in improved production of Direct Reduced Iron during the
period. Production of Hot Metal was higher at 2.13 Million MTs. The upgradation
of Blast Furnace during 2009 had resulted in significant improvement in process
efficiencies. Production of Cold Rolled Steel Coils/Sheets and Galvanized
Coils/Sheets had registered increase at 0.31 Million MTs and 0.20 Million MTs,
respectively. In its endeavour to continually offer superior products, the
Company has added Galvalume, a premium metallic-coated steel product, to its
product-basket. Galvaume finds extensive application in corrosion and
temperature resistance. Production of Galvalume Coils/Sheets has been streamlined
during the period. Production of Tubes and Pipes had also stabilized during the
period. Production of PVC coated sheets during the period was at 101% of
installed capacity. Sales of Hot Rolled Coils at 2.88 Million MTs was higher by
19%, compared to previous year, on an annualized basis. Sales of Cold Rolled
Steel Coils/Sheets was higher by 11%, whereas sales of Galvanized Coils/Sheets
was lower by 7%, compared to previous year, on an annualized basis. Sales of
Tubes and Pipes was commensurate with production achieved during the period.
EXPORTS
Export earnings
during the period was Rs.4334.400 Millions. Exports were lower during the
period due to slack demand conditions prevailing in world markets. Export realizations
were significantly low leading to fall in the Company’s export earnings.
FINANCIAL
PERFORMANCE (STANDALONE) IN RELATION TO OPERATIONAL PERFORMANCE
Income from
operations during the fifteen-month period was Rs.109831.400 millions and
profit before interest, finance charges and depreciation was Rs.17229.400
millions. After providing for interest and finance charges of Rs.12854.500
millions, profit before depreciation was Rs.4374.900 millions.
After providing
for depreciation of Rs.7739.500 millions, loss before tax provisions was
Rs.3364.600 millions for the period. After considering deferred tax credit of
Rs.141.500 millions and providing for wealth tax Rs.0.300 million, net loss
during the period was Rs.3223.400 millions. Considering Debenture Redemption
Reserve written back Rs.202.600 millions and accumulated losses of Rs.18321.500
millions brought forward from the previous year, the accumulated losses as at
30.06.2010 was Rs.21342.300 millions.
AWARDS AND
ACCOLADES
The Company has
been conferred with the following prestigious awards during the year :-
_ Fe-EVI Green
Business Leadership Award 2009-10 initiated by Financial Express and Emergent
Ventures Limited
_ Dr R J Rathi
Award 2010 for Environment and Pollution Control
_
_ Golden Peacock
Award for Corporate Social Responsibility-2010
_ Special
Commendation for Golden Peacock Award for Excellence in Corporate Governance
2009.
Contingent
liabilities not provided for in respect of: (As on 30.06.2010)
Rs.
In Millions
|
a) |
Claims against the Company not acknowledged as debts |
159.700 |
|
b) |
Excise and Custom Demands under
dispute/ appeal |
90.300 |
|
c) |
Income Tax demands under appeal |
33.800 |
|
d) |
Sales Tax matters (under dispute/appeal) |
16.300 |
|
e) |
Letters of Credit, Bills discounted and Bank Guarantees outstanding |
2506.600 |
|
f) |
Corporate Guarantees issued to Financial Institutions and others on
behalf of various bodies corporate |
2904.400 |
|
g) |
Custom Duty on import of equipments and spare parts under EPCG-scheme
(including Rs.382.200 Millions
(Rs.382.200 Millions) relating to Ispat Energy Limited., a subsidiary
company) |
2139.400 |
UNAUDITED
FINANCIAL RESULTS FOR THE QUARTER ENDED 31.03.2011
(Rs.
In Millions)
|
|
2011 |
2011 |
|
|
|
|
Unaudited |
Unaudited |
|
1 |
Sales/Income from Operations |
29014.900 |
63168.900 |
|
|
Less : Excise Duty |
2542.100 |
5536.900 |
|
|
a) Net Sales/Income from Operations |
26472.800 |
57632.000 |
|
|
b) Other Operating Income |
746.000 |
1133.500 |
|
|
Total |
27218.800 |
58765.500 |
|
2 |
Expenditure |
|
|
|
|
a) Decrease/ (Increase) in stock in
trade and work in progress |
(2505.400) |
(770.000) |
|
|
b) Consumption of raw materials |
18724.800 |
39788.900 |
|
|
c) Power & Fuel Cost |
4343.800 |
10368.300 |
|
|
d) Employees cost |
561.800 |
1696.700 |
|
|
e) Depreciation |
1482.900 |
4489.200 |
|
|
f) Other expenditure |
2026.400 |
5827.900 |
|
|
Total |
24634.300 |
61401.000 |
|
|
|
|
|
|
3 |
Profit / (Loss) from
Operations before Other Income & Interest (1-2) |
2584.500 |
(2635.500) |
|
|
|
|
|
|
4 |
Other Income |
-- |
-- |
|
|
|
|
|
|
5 |
Profit / (Loss)
before Interest (3+4) |
2584.500 |
(2635.500) |
|
|
|
|
|
|
6 |
Interest |
1880.000 |
7516.500 |
|
|
|
|
|
|
7 |
Profit / (Loss)
from Ordinary Activities before tax (5-6) |
704.500 |
(10152.000) |
|
|
|
|
|
|
8 |
Tax Expenses |
|
|
|
|
-
Current Tax |
0.300 |
0.300 |
|
|
-
Deferred Tax Charge/ (Credit) [Refer Note No. 1(a) below] |
2.400 |
(3444.800) |
|
|
-
Fringe Benefit Tax |
-- |
-- |
|
|
|
|
|
|
9 |
Net
Profit/(Loss) (7-8) |
701.800 |
(6707.500) |
|
|
|
|
|
|
10 |
Paid-Up Equity Share Capital |
23860.800 |
23860.800 |
|
|
(Face Value of Rs.10/- each) |
|
|
|
|
|
|
|
|
11 |
Reserves excluding Revaluation Reserves |
-- |
-- |
|
|
|
|
|
|
12 |
Earning Per Share (EPS) (not annualised) |
|
|
|
|
Basic and Diluted EPS (Rs.) (Refer Note
No. 9 below) |
0.37 |
(4.72) |
|
|
|
|
|
|
13 |
Public shareholding |
|
|
|
|
- Number
of shares * |
797168173 |
797168173 |
|
|
- Percentage of shareholding * |
33.40% |
33.40% |
|
|
|
|
|
|
14 |
Promoters & Promoter Group
shareholding |
|
|
|
|
a) Pledged/ Encumbered |
|
|
|
|
-
Number of shares |
477730463 |
477730463 |
|
|
- Percentage of share (as a % of the
total shareholding of Promoters & |
30.05% |
30.05% |
|
|
- Percentage of share (as a % of the
total share capital of the Company) |
20.02% |
20.02% |
|
|
b) Non-Encumbered |
|
|
|
|
-
Number of shares |
1171793582 |
1171793582 |
|
|
- Percentage of share (as a % of the
total shareholding of Promoters & |
69.95% |
69.95% |
|
|
- Percentage of share (as a % of the
total share capital of the Company) |
46.58% |
46.58% |
* excluding 106912 Shares (0.01%) represented
by Global Depository Receipts, which are held by custodians.
Notes:
1.
(a) The Auditors had drawn attention in their audit
report on the Company's Accounts for fifteen months period ended 30th June,
2010 and limited review report for the quarter ended 31st December, 2010,
regarding their inability to express any opinion on the recognition of net
Deferred Tax Asset of Rs. 9642.800 millions up to 30th June, 2010 and Rs.
13090.000 millions up to 31st December, 2010.
In view of the process improvements carried out for enhancing the
steel-making capacity and operating efficiency, Company's Business Plans and
strategies, improvement in net worth consequent on issue of equity shares to
JSW Steel Limited, approval of the company's proposals by its lenders through
CDR mechanism, the company is virtually certain that there would be sufficient
taxable income in the future to claim the deferred tax credit. The financial
results for the period have, therefore, been drawn as per going concern
assumption.
(b) The Auditors had also drawn attention in their audit report on the
Company's Accounts for fifteen months period ended 30th June, 2010, and limited
review report for the quarter ended 31st December, 2010, regarding
remuneration of Rs. 155.200 millions and Rs. 171.900 millions respectively paid to the Managing and
other Whole-time Directors, which is in excess of the approvals received from
the Ministry of Corporate Affairs. Representation has been made by the Company
to Ministry of Corporate Affairs for reconsideration of the above approvals
and, hence, no adjustment towards recovery of the above excess managerial
remuneration has been made in the accounts.
2.
There were no extraordinary and exceptional items
during the respective periods reported above.
3.
Pursuant to the Subscription cum Shareholders
Agreement entered into by the Company on 20th December, 2010 with
its promoters and JSW Steel Ltd., and upon receipt of various
consents/approvals, the Company has allotted to JSW Steel Ltd., on preferential
basis, 108,66,49,874 equity shares of Rs. 10/- each, at a premium of Rs. 9.85
per share, aggregating to Rs. 21570.000 millions. The said equity shares have
been allotted to JSW Steel Limited. on 24th January, 2011.
4.
Details of utilization of proceeds of preferential
issue of equity shares to JSW Steel Limited aggregating to Rs. 21570.000 millions
are as follows :-
|
|
Period ended 31st March, 2011 (Rs. In Millions) |
|
i.
Working capital requirement and general corporate
purposes |
11570.000 |
|
ii.
Debt reduction 1 redemption of Preference Shares |
5150.000 |
|
iii.
Balance held in Fixed Deposits with banks pending
ultimate utilization |
4850.000 |
|
Total |
21570.000 |
5.
Pursuant to the approval of CDR Empowered Group at
its meeting held on 12th January 2011 and subsequent notices given to the Company
by certain lenders for conversion of part of their outstanding dues into equity
shares in the Company, the Securities Issue Committee of the Board of Directors
of the Company, at its meeting held on 31st March 201 1, had decided to allot
10,24,17,239 Equity Shares of Rs 10 each at a premium of Rs 4.74 per share to
the respective lenders, subject to receipt of 'in principle' approval from the
Stock Exchanges in terms of Clause 24(a) of the Listing Agreement. 'In
principle' approval of Bombay Stock Exchange Limited has since been received,
while approval of National Stock Exchange of India Limited is still awaited.
6.
Other Operating Income includes a sum of Rs.702.800
millions for the quarter and nine months ended 31st March 2011 (Rs 1022.400
millions and Rs 1875.200 millions for the quarter and nine months ended 31st
March 20101, being gain arising during the quarter on account of pre-payment on
Net Present Value basis of a portion
of deferred Value Added I Sales Tax liability, in terms of Section 94(2) of
Maharashtra Value Added Tax Act 2002
read with Rule 84 of Maharashtra Value Added Tax Rules 2005.
7.
Basic and Diluted EPS have been computed after
considering the impact of proportionate arrear dividends on Cumulative
Redeemable Preference Shares on the profit/ loss for the respective periods in
terms of Accounting Standard 20 'Earnings Per Share".
8.
The Company has identified Iron & Steel
products as its sole operating segment and hence no further disclosure is
required under Accounting Standard 17 'Segment Reporting'.
9.
Previous period1 year figures have been re-grouped
/ re-arranged wherever necessary.
10.
At the beginning of the quarter, there were no
complaints from investors pending for disposal. During the quarter, 171
complaints were received and these were appropriately disposed off. Thus, there
were no complaints from investors pending for disposal at the end of the
quarter.
11.
The above unaudited financial results for the
Quarter ended 31st March, 2011 were reviewed by the Audit Committee and
approved by the Board of
Directors at their respective meetings held on 11th May, 2011.
FIXED ASSETS:
·
·
·
Buildings
·
Railways Sidings and Locomotives
·
Plant and Machinery
·
Vessels
·
Electrical Installations
· Vehicles
· Furniture and Fixtures
· Office Equipment
· Computers
WEBSITE DETAILS:
PROFILE:
Subject is one of the integrated steel makers and the largest private
sector producer of hot rolled coils in
Headquartered at Mumbai, subject employs a total of 3000 people and is
the leader in the national speciality steel market. The company's core
competency is the production of high quality steel, for which it employs
cutting edge technologies and stringent quality standards. It produces
world-class sponge iron, galvanized sheets and cold rolled coils, in addition
to hot rolled coils, through its two state-of-the art integrated steel plants,
located at Dolvi and Kalmeshwar in the state of
The sprawling 1,200 acres Dolvi complex houses the 3 million tonne per annum
hot rolled coils plant, that combines the latest technologies - the Conarc
process for steel making and the compact strip process (CSP) - introduced for the
first time in Asia.
The complex also has a 1.6 million tonne per annum sponge iron (DRI) plant,
which was commissioned in 1994 as the world's largest and most efficient
gas-based single mega module plant. Moreover, the Dolvi complex is home to a 2
million tonne blast furnace and also boasts a mechanised multi-functional jetty
situated nearby, that facilitates the automation of raw material handling. A
new 2.24 million tonnes per annum sinter plant, a 1260 tonnes per day oxygen
and a new electric arc furnace have also been commissioned at subject Dolvi.
Ispat is the only steel maker in India and among a few in the world to have
total flexibility in choice of steel making route, be it the conventional blast
furnace route or the electric arc furnace route. Its dual technology allows
Ispat the freedom to choose its raw material feed, be it pig iron, sponge iron,
iron ore, scrap or any combination of various feeds. It also has total
flexibility in choosing its energy source, be it electricity, coal or gas.
The Kalmeshwar complex houses Ispat's 0.4 million tonnes cold rolling complex,
which also includes the galvanized plain/ galvanized corrugated (GP/GC) lines
and India's first colour coating mill.
Technology and innovation have always been the cornerstones of subject's quest
for excellence and these state-of-the-art plants facilitate the company's
mission to attain and sustain market leadership, through technological and
product superiority.
The company's strengths lie in its integrated process management, knowledge
management and control systems. And its seamless supply chain management
systems further the efficient use of raw materials, while its staff of highly
skilled engineers, technicians and managers with specialised domain knowledge,
ensure the choice of the relevant technology and the ability to produce
international quality products at a competitive price.
In line with its vision for the future, subject is expanding its HRC capacity
to 3.6 million. Moreover, it aims to complete its vertical integration process,
increase the proportion of high-grade and value-added steel products in its
product mix and leverage the advantage the modern design and the size of the
facilities offers.
With investments of over US $2 billion, subject is the seventh largest Indian
private sector company in terms of fixed assets. It aims to consolidate its
market leadership in the national specialty steel market by capitalizing on the
proximity of its manufacturing facilities to major consumers of flat steel
products in
In the short span of time since its inception, Ispat Industries has
steadily raised the bar - in terms of its relentless pursuit of technological
advancement, unwavering focus on innovation, strident emphasis on quality
products and its constant initiatives aimed at ensuring customer satisfaction.
As it rapidly forges ahead on all these fronts, subject has successfully
reinforced its position as market leader, while simultaneously making
technological breakthroughs and setting even higher standards for itself.
Milestones
Since its inception, the Ispat Group has been moving from strength to
strength, consistently breaking new grounds and spearheading new developments
in iron and steel. Ispat Industries, the flagship of the Ispat Group, has taken
expansive technological strides to emerge as one of
1952
Mr. M L Mittal, the founder
chairman of the Ispat Group, begins his foray into the iron and steel business
with the takeover of an ailing rolling mill in
1953
A combination of technological
vision and management leads Mr. M L Mittal to experiment with an electric arc
furnace at a steel plant in
1974
Mr. M L Mittal enters the
international steel arena by setting up PT Ispat Indo in
1980
This decade witnesses a series
of acquisitions around the world and hectic expansion in
1984
Nippon Denro Ispat Limited was
incorporated in 1984 and was granted the first Industrial License by Government
of India for manufacturing Galvanised Plain/Corrugated Sheets.
1985
Nippon Denro Ispat Limited, now
known as Ispat Industries (IIL), is established and it rapidly emerges as the
largest manufacturer of galvanised steel products in the private sector.
1988
To better provide steel
solutions to an increasingly sophisticated marketplace, Subject sets up a
highly advanced cold rolling reversing mill, in collaboration with Hitachi of
Japan, to manufacture a wide range of cold rolled carbon steel strips.
1988
Subject instals a colour
coating line – the first of its kind in
1988
Nippon Denro Ispat Limited was
granted Industrial License for Cold Rolled Sheets.
1994
Business interests within the
Ispat Group are demarcated. The eldest son, Mr. L N Mittal continues to manage
the international operations while Mr. Pramod Mittal and Mr. Vinod Mittal, the
younger brothers focus on steel and other businesses in India.
1994
Subject commissions the world’s
largest gas-based single mega module plant for manufacturing direct reduced
iron (sponge iron), at its Maharashtra-based Dolvi plant. Within three months,
the plant exceeds its capacity of 1 million tonnes per annum (MTPA) of high
quality DRI.
1995
A 1.5 MTPA hot strip mill with
Continuous Strip Processing (CSP) technology is installed at Dolvi. A
mechanised multi-functional jetty situated close to the plant facilitates the
automation of raw material handling.
1998
A world-class integrated steel
plant for the production of hot rolled coils is launched, armed with cutting
edge technologies, such as the Conarc Process for steel making and the Compact
Strip Process, both introduced for the first time in
2000
The new millennium is witness to the erection and commissioning of a 2
MTPA blast furnace at the Dolvi steel complex in record time.
2003
» Blast Furnace commissioned
» Sponge iron capacity increased from 1.2 mtpa to 1.4 mtpa
2004
» Hot rolled coil steel-making
capacity increased from 1.5 mtpa to 2.4 mtpa
» Sponge iron capacity increased from 1.4 mtpa to 1.6 mtpa
2005
» Further expansion of Hot rolled coil steel capacity under implementation
Press Release:
FOR IMMEDIATE RELEASE I December 21, 2010
JSW ISPAT STRIKE
LANDMARK STRATEGIC
Consolidation is
very rarely witnessed among Indian Corporate Houses. However, JSW Steel and
Ispat Industries Ltd are writing a new chapter in the book of Indian corporate
history. JSW Steel will acquire a controlling stake in Ispat Industries Ltd.
The deal that has an enterprise value of around US $3 billion will make JSW
India’s largest steel producer with a combined capacity of 14.3 mtpa by March
2011. This monumental deal was announced today at a joint press conference held
by Mr Sajjan Jindal and Mr Vinod Mittal.
ROBUST FUTURE FOR STEEL:
High rates of
growth to the tune of 9% per annum, compounded with huge infrastructure
investments, have ensured that the demand for steel will remain robust in the
near future. JSW Steel is therefore continuously on the lookout for both
organic and inorganic growth opportunities. The collaboration with Ispat
Industries fits in very well with JSW’s bullish outlook on the emerging steel
scenario.
ISPAT’s UNIQUE FEATURES:
Ispat Industries,
with a production capacity of 3.3 mtpa, is inherently seen as a pioneering company
that brought new technologies into
STRATEGIC PLAN FOR PERFORMANCE ENHANCEMENT:
The current
difficulties of Ispat Industries emanate from a financial imbalance and lack of
integration in key inputs of coke, pellet and power. JSW’s infusion of equity removes
this financial stress, and the proposed linkages of key inputs will reduce the
operating cost. By taking over the management of Ispat Industries, JSW will
address these concerns, creating value for all Ispat stakeholders.
Ispat Industries
will issue, on a preferential basis, 108.66 crores equity shares at Rs 19.85
per share for a consideration of Rs 2157 crores. In addition, JSW will make an
open offer to the minority shareholders of Ispat Industries as per SEBI
guidelines.
While JSW’s
holding will be at 41.29% on completion of preferential allotment, with a scope
to go up, based on the outcome of the open offer, the existing promoters will
hold 26% on completion of transaction. Dilution of holding for both the parties
will occur if there is a capital raising in the future. JSW will further
refinance the entire outstanding debt of Ispat.
JSW will also put
in a systematic plan to turnaround Ispat Industries by developing synergies in
the competitive steel market. JSW Steel will facilitate the sourcing of key
inputs like coke, pellet and power, which will bring down the cost of
production substantially. JSW’s extensive pan
Besides this,
Ispat Industries will set up a captive coke oven plant, pellet plant and power
plant, to achieve complete integration of steel making facilities, over a
period of 36-48 months, in order to reduce cost of production. Along with this,
various operational efficiency projects shall be taken up, with debottlenecking
of existing facilities, for capacity enhancement from 3.3 mtpa to 4.2 mtpa.
Ispat Industries
will be renamed JSW Ispat Steel Ltd. Mr. Sajjan Jindal will be the Non
Executive Chairman of the Company. Mr. Vinod Mittal will be Executive Vice
Chairman of the Company during the transition period, and subsequently function
as a Non-Executive Vice Chairman.
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.45.37 |
|
|
1 |
Rs.73.53 |
|
Euro |
1 |
Rs.64.36 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
6 |
|
--CREDIT LINES |
1~10 |
5 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
50 |
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.