MIRA INFORM REPORT

 

 

Report Date :

24.08.2011

 

IDENTIFICATION DETAILS

 

Name :

JSL STAINLESS LIMITED (w.e.f August 2010)

 

 

Formerly Known As :

JSL LIMITED

 

 

Registered Office :

O. P. Jindal Marg, Hisar – 125 005, Haryana

 

 

Country :

India

 

 

Financials (as on) :

31.03.2010

 

 

Date of Incorporation :

29.09.1980

 

 

Com. Reg. No.:

55-10901

 

 

Capital Investment / Paid-up Capital :

Rs.371.164 millions

 

 

CIN No.:

[Company Identification No.]

L26922HR1980PLC010901

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

RTKJ01831E

RTKJ01408B

 

 

PAN No.:

[Permanent Account No.]

AABCJ1969M

 

 

Legal Form :

Public Limited Liability Company. The company’s shares are listed on the Stock Exchanges

 

 

Line of Business :

Manufacturer of Stainless Steel.

 

 

No. of Employees :

54184 (approximately)                                                            

 

 

RATING & COMMENTS

 

MIRA’s Rating :

A (67)

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

Maximum Credit Limit :

USD 76500000

 

 

Status :

Good

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

Comments :

Subject is a Jindal Group Company.

 

It is a well established and a reputed company having good track. Financial position of the company appears to sound. Directors are reported to be experienced and respectable businessmen. Trade relations are reported as fair. Business is active. Payments are reported to be regular and as per commitments.

 

 The company can be considered good for normal 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

 

Country Name

Previous Rating

(31.12.2009)

Current Rating

(01.04.2010)

India

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

LOCATIONS

 

Registered Office :

O. P. Jindal Marg, Hisar – 125 005, Haryana, India

Tel. No.:

91-1662-222471- 485 (15 Lines)

Fax No.:

91-1662-220476 / 220499

E-Mail :

jslhsr@nde.vsnl.net.in

hsr.harit@jslhsr.com

jindalsp@del3.vsnl.net.in

awards@jindalsteel.com

ddspace@hanmall.net 

Website :

http://www.jindalstainless.com

 

 

Corporate Office :

Jindal Centre, 12, Bhikaji Cama Place, New Delhi – 110 066, India

Tel. No.:

91-11-26188340-50

Fax No.:

91-11-26161271 / 26170691 / 41659169

E-Mail :

jindalsp@del3.vsnl.net.in

info@jindalsteel.com

 

 

Factory 1 :

P. O. Box No. 6, O.P, Jindal Marg, Hisar – 125 005, Haryana, India

Tel. No.:

91-1662-220471-485 (15 Lines)

Fax No.:

91-1662-220476 / 220499

 

 

Factory 2 :

58-17-1/1, Sangeevaya Nagar, Near Nad Kotha Road Junction, Visakhapatnam – 530 009, India

Tel. No.:

91-891-2558898

Fax No.:

91-891-2558996

 

 

Factory 3 :

Kalinga Nagar Industrial Complex, P. O. Danagadi – 755026, District Jajpur, Orissa, India

Tel. No.:

91-672-6266001

Fax No.:

91-672-6266002

 

 

Factory 4 :

Kawasan Industry Maspion, Maspion Unit-V, Desa Sukomylyo-Manyar, Gresik 61151, Jawa Timur-Indonesia

Tel. No.:

62-31-3959565

Fax No.:

62-31-3959566

 

 

Factory 5 :

Jindal Nagar, Kothavalasa - 535183, District Vizianagaram, Andhra Pradesh, India

Tel. No.:

91-8966-273327/273254/273335

Fax No.:

91-8966-273326

E-mail :

jindalkvs@sancharnet.in

 

 

Branches :

·         Jindal Mansion, 5-A, G. Deshmukh Marg, Mumbai – 400 026, Maharashtra, India

Tel. No.: 91- 22-4963000 / 4924470 - 74

Fax No.: 91-22- 4961400

E-Mail : jindal@bom2.vsnl.net.in

 

·         50, H. I. G, BBA, Jaidev Vihar, Bhubaneswar – 751013, Orissa, India

Tel. No. : 91-674-2303560/2301846

Fax : 91-674-2303147

E-mail: jslbbs@sify.com

 

 

DIRECTORS

 

AS ON 31.03.2010

 

Name :

Mrs. Savitri Devi Jindal

Designation :

Chairperson

 

 

Name :

Mr. Ratan Jindal

Designation :

Vice-Chairman and Managing Director

 

 

Name :

Mr. Gautam Kanjilal

Designation :

Nominee Director of SBI

 

 

Name :

Mr. Naveen Jindal

Designation :

Director

 

 

Name :

Mr. Arvind Parakh

Designation :

Director – Finance

 

 

Name :

Ms. Suman Jyoti Khaitan

Designation :

Director

 

 

Name :

Mr. T. S. Bhattacharya

Designation :

Director (Sales and Marketing)

 

 

Name :

Mr. S. S. Virdi

Designation :

Executive Director and Chief Operating Officer

 

 

Name :

Mr. Jurgen Hermann Fechter

Designation :

Director

 

 

Name :

Mr. James Alistair Kirkland Cochrane

Designation :

Director

 

 

KEY EXECUTIVES

 

Name :

Mr. Jitendra Kumar

Designation :

Company Secretary

 

 

Name :

Mr. Sandeep Sikka

Designation :

Head (Corporate Finance)

 

 

Name :

Mr. R. Ganesh

Designation :

Sr. Vice President (Strategic Sourcing and Integrated Logistics)

 

 

Name :

Mr. Rajiv Rajvanshi

Designation :

Vice President (Corporate Human Resource and Legal)

 

 

Name :

Mr. S. K. Jain

Designation :

Head (Hisar Unit)

 

 

Name :

Mr. S. Bhattacharya

Designation :

Director (Operations - Hisar Unit)

 

 

Name :

Mr. R. K. Goyal

Designation :

Director (Strategy and Corporate Affairs)

 

 

MAJOR SHAREHOLDERS

 

As on 30.06.2011

 

Names of Shareholders

No. of Shares

Percentage of Holding

(A) Shareholding of Promoter and Promoter Group

 

 

(1) Indian

 

 

Individuals / Hindu Undivided Family

747815

0.44

Bodies Corporate

43141700

25.31

Sub Total

43889515

25.75

(2) Foreign

 

 

Individuals (Non-Residents Individuals / Foreign Individuals)

7426805

4.36

Bodies Corporate

23149710

13.58

Sub Total

30576515

17.94

Total shareholding of Promoter and Promoter Group (A)

74466030

43.69

(B) Public Shareholding

 

 

(1) Institutions

 

 

Mutual Funds / UTI

15355820

9.01

Financial Institutions / Banks

288741

0.17

Insurance Companies

2426624

1.42

Foreign Institutional Investors

40693558

23.88

Any Others (Specify)

9997524

5.87

Foreign Bank

9997524

5.87

Sub Total

68762267

40.34

(2) Non-Institutions

 

 

Bodies Corporate

7929564

4.65

Individuals

 

 

Individual shareholders holding nominal share capital up to Rs. 0.100 million

18438418

10.82

Individual shareholders holding nominal share capital in excess of Rs. 0.100 million

845124

0.50

Sub Total

27213106

15.97

Total Public shareholding (B)

95975373

56.31

Total (A)+(B)

170441403

100.00

(C) Shares held by Custodians and against which Depository Receipts have been issued

-

-

(1) Promoter and Promoter Group

16734984

-

(2) Public

869350

-

Sub Total

17604334

-

Total (A)+(B)+(C)

188045737

-

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturer of Stainless Steel

 

 

Products :

Item Code No.

Product Description

72.19/72.20

S. S. Hot Rolled / Cold Rolled  Strips and Sheets, Flats and Plates

72.02

Ferro Chrome

 

·         Strip Mill/Tandem Mill

·         Plate/Steckel Mill

·         Steel Melting

·         Cold Rolling Mill

·         Cold Rolled Strips

·         Cold Rolled Special Steel

·         Oxygen Plant

·         Oxygen Gas

·         Argon Gas

·         Industrial Machinery

·         High Carbon Ferro Chrome

·         Rolling Mill Plant  

 

PRODUCTION STATUS  (AS ON 31.03.2010)

 

Particulars

Unit

Installed Capacity

AT HISAR:

1. Strip Mill/Tandem Mill

2. Plate/Steckel Mill

3. Steel Melting

4. Cupro Nickle Melting

5. Cold Rolling Mill

i) Cold Rolled Strips

ii) Cold Rolled Special Steel

iii) Coin Blanks

6. Oxygen Plant:

i) Oxygen Gas

ii) Argon Gas

7 Industrial Machinery

AT VIZAG

High Carbon Ferro Chrome

AT ORISSA/MINES

High Carbon Ferro Chrome

Chrome Ore Concentrate

Power Plant                                                                                        

 

MT

MT

MT

MT

 

MT

MT

MT

 

M. Cum.

M. Cum.

Nos.

 

MT

 

MT

MT

MT

 

250000

720000

720000

6000

 

275000

25000

10000

 

55.00

1.50

209

 

40000

 

250000

192000

250

 

 

GENERAL INFORMATION

 

No. of Employees :

54184 (approximately)

 

 

Bankers :
  • State Bank of India
  • State Bank of Patiala
  • Punjab National Bank
  • Canara Bank
  • Standard Chartered Bank
  • ICICI Bank Limited
  • Axis Bank Limited
  • Bank of Baroda

 

 

Facilities :

SECURED LOANS :

31.03.2010

[Rs. in Millions]

31.03.2009

[Rs. in Millions]

 

Redeemable Non-Convertible Debentures

2500.000

4300.000

Term Loans from Banks

 

 

Rupee Term Loans

32359.259

24129.679

Foreign Currency Loans

13575.547

16453.133

Buyer’s Credit in Foreign Currency

 

 

Against Capital Goods

10695.039

0.000

Against Working Capital

2756.959

0.000

 

 

 

Funded Interest Term Loans from Banks / FI

2045.531

0.000

Car Loans From Banks

15.685

18.345

Working Capital Loans from Banks

8912.254

6894.578

 

 

 

Total

72860.274

51795.735

 

NOTES :

 

A.

Debentures are to be secured by first pari-passu charge by way of mortgage of company’s immovable properties and hypothecation of movable fixed assets both present and future and second pari passu by way of hypothecation and \or pledge of current assets namely finished goods, raw materials, work in progress, consumable stores and spares, book debts, bills receivable

 

Debenture of Rs. 1000000 each are redeemable in 28 equal quarterly installments starting from 1st July, 2010 and ending on 1st April, 2019 and coupon is proposed to be revised to 9.75%.

 

Debentures are secured by pari passu charge by way of equitable mortgage on the  company’s immovable properties located in state of Gujarat, Hisar, Vizag, Orissa, and hypothecation of movable assets in faour of debenture trustee ranking pari passu with other financial institutions/banks.

 

 B.

Term Loan amounting to Rs. 39271.361 millions are to be secured by first pari passu charge by way of mortgage of company’s immovable properties and hypothecation of movable fixed assets both present and future and first pari passu by way of hypothecation and \or pledge of current assets namely finished goods, raw materials, work in progress, consumable stores and spares, book debts, bills receivable.

 

Term Loan amounting to Rs. 6663.445 millions are to be secured by second pari passu charge by way of mortgage of company’s immovable properties and hypothecation of movable fixed asse5ts both present and future and second pari passu by way of hypothecation and \or pledge of current assets namely finished goods, raw materials, work in progress, consumable stores and spares, book debts, bills receivable.

 

Term loans from Banks include loans of Rs.36206.305 millions, for which charge is created / to be created by way of mortgage of company’s immoveable properties and hypothecation of moveable assets both present and future ranking pari-passu with other Financial Institutions/Banks.

 

Term loans from Banks include loans of Rs.3000.000 millions (Rs. Nil), for which charge is created/to be created by way of second residual charge on current assets and fixed assets of the company.

 

Term loans from Banks include sub debts term loans of Rs.242.507 millions (Rs.102.789 millions) secured by way of second charge on all movable and immoveable fixed assets of the company ranking pari-passu with other Financial Institutions/ Banks.

 

Term loans from Banks include loans of Rs.500.000 millions (Rs.500.000 millions) secured by way of residual charge (ranking subservient to first and second charge holders) over movable fixed assets of the company.

 

Term Loans from Banks include loans of Rs.634.000 millions secured by residual charge by way of hypothecation of movable fixed assets of the company.

 

C. funded interest term loans amounting to Rs. 2045.531 millions are to be secured by

Second pari passu charge by way of mortgage of company’s immovable properties and hypothecation of movable fixed assets both present and future and second pari passu by way of hypothecation and \or pledge of current assets namely finished goods, raw materials, work in progress, consumable stores and spares, book debts, bills receivable

 

D. Secured by way of hypothecation of vehicles purchased there under.

 

E. Working capital loans are secured by way of hypothecation and/or pledge of  current assets namely finished goods, raw-materials, work-in-progress, consumable stores and spares, book debts, bills receivable and by way of second charge in respect of other moveable and immoveable properties of the company ranking pari-passu with other Banks/Financial Institutions.

 

UNSECURED LOANS :

31.03.2010

[Rs. in Millions]

31.03.2009

[Rs. in Millions]

 

0.50% Foreign Currency Convertible Bonds (including Premium)

1403.140

1219.816

Fixed Deposits

1020.858

382.069

Rupee Term Loans from Banks

0.000

3000.000

Security Deposits from Agents / Dealers / Other

164.936

173.821

Total

2588.934

4775.706

 

Note:

0.50% foreign currency convertible bonds were issued to foreign investors on 24.12.2004 by the company, in terms of the offering memorandum dated 17.12.2004, there bonds at the holder, may be converted into equity shares of face value of Rs. 2/- each at any time on or after 22.01.2005 at a pre determined price of Rs. 119.872 per share. Unless previously redeemed, repurchased and cancelled, or converted, the bonds were redeemable at 129.939% of their principal amount on 24.12.2009.

 

 

 

Banking Relations :

--

 

 

Auditors :

 

Name :

·         S. S. Kothari Mehta and Company

Chartered Accountants

 

·         Lodha and Company

Chartered Accountants

 

 

Cost Auditors :

Ramanath Iyer and Company

Cost Accountants

 

 

Associates :

·         Jindal Steel and Power Limited

·         JSW Steel Limited

·         Jindal Saw Limited

·         Jindal Industries Limited

·         Nalwa Steel and Power Limited (formerly Nalwa Sponge Iron Limited)

·         Bir Plantation Private Limited

·         Sona Bheel Tea Limited

·         Bharat Metals

·         Jindal Overseas Holding Limited

·         Nalwa Sons Investment Limited

 

 

Subsidiaries :
  • PT. Jindal Stainless Indonesia
  • Jindal Stainless Steelway Limited
  • Austenitic Creations Private Limited
  • Jindal Architecture Limited
  • Jindal Stainless UK Limited
  • indal Stainless FZE
  • Green Delhi BQS Limited
  • Jindal Stainless Madencilik Sanayi Ve Ticaret  Anonim Sirketi
  • Parivartan City Infrastructure Limited
  • Jindal Aceros Inoxidables S.L. (w.e.f. 23.07.2008)
  • JSL Group Holdings Pte. Limited (w.e.f. 14.10.2008)
  • JSL Logistics Limited (w.e.f. 27.03.2009)
  • Jindal Stainless Italy s.r.l.
  • JSL Ventures Pte. Limited (w.e.f. 26.08.2008)
  • JSL Europe SA (w.e.f. 15.09.2008)
  • JSL Minerals and Metals SA (w.e.f. 26.11.2008)

 

 

Joint Venture :

  • MJSJ Coal Limited

 

 

CAPITAL STRUCTURE

 

As on 31.03.2010

 

Authorised Capital :

 

No. of Shares

Type

Value

Amount

475000000

Equity Shares 

Rs.2/- each

Rs.950.000 Millions

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

 

No. of Shares

Type

Value

Amount

185582172

Equity Shares 

Rs.2/- each

Rs.371.164 millions

 

 

 

 

 

 

Of the above

 

A) 13,778,717 Equity Shares of Rs 10/-each fully paid up issued to Shareholders of Jindal Strips Limited pursuant to Scheme of‘Arrangement and Demerger.

 

B) One Equity Share of Rs.10/-each fully paid up issued to Shareholders of J - Inox Creations (P) Limited And Austenitic Creations (P) Limited pursuant to the Scheme of Amalgamation.

 

C) 5,153,293 Fully Paid Up Bonus Equity Shares of Rs.10/- each in the ratio of 253 Equity Shares of Rs.10/- each for every 679 Equity Shares of Rs.10/- each, alloted out of Share Premium and Capital Redemption Reserve to the equity shareholders of the company pursuant to Scheme of Arrangement and Demerger.

 

D) 999,752 Equity Shares of Rs.10/- each fully paid up allotted to the holders of 460 Foreign Currency Convertible Bonds of US$ 5000/- each at predetermined (as per scheme ) conversion rate of Rs.100/- each on 13.01.2004.

 

E) Company has subdivided the Equity Shares of Rs.10/- each into Equity Shares of Rs.2/- each on 10.03.2004.

 

F) 9,997,524 Equity Shares of Rs. 2/- each fully paid up allotted to the holders of 920 Foreign Currency Convertible Bonds of US $ 5000/- each at predetermined (as per scheme) conversion rate of Rs. 20/- each on 24.12.2004.

 

G) 3,907,028 Equity Shares of Rs. 2/- each fully paid up allotted to the holders of 2141 Foreign Currency Convertible Bonds of US $ 5000/- each at predetermined (as per scheme) conversion rate of Rs.119.872 each during the year ended on 31.03.2006.

 

H) 16,734,984 (represented by 8,367,492 nos. GDS) Equity Shares of Rs. 2/- each fully paid up allotted to the holders of 1540 Foreign Currency Convertible Bonds of US $ 5000/- each at predetermined (as per scheme) conversion rate of Rs. 20/- each during the year ended on 31.03.2006.

 

I) 869,350 (represented by 434,675 nos. GDS) Equity Shares of Rs. 2/- each fully paid up allotted to the holders of 80 Foreign Currency Convertible Bonds of US $ 5000/- each at predetermined (as per scheme) conversion rate of Rs. 20/- each during the year ended on 31.03.2007.

 

J) 6,800,000 Equity Shares of Rs. 2/- each fully paid up allotted to the holders of Equity Share warrants at predetermined conversion rate of Rs. 103/- each during the year ended on 31.03.2007.

 

K) 9,213,726 Equity Shares of Rs. 2/- each fully paid up allotted to the holders of 5049 Foreign Currency Convertible Bonds of US $ 5000/- each at predetermined (as per scheme) conversion rate of Rs. 119.872 each during the year ended on 31.03.2008.

 

L) 7,150,000 Equity Shares of Rs. 2/- each fully paid up allotted to the holders of Equity Share warrants at predetermined conversion rate of Rs. 103/- each during the year ended on 31.03.2008.

 

M) 7,550,000 Equity Shares of Rs. 2/- each fully paid up allotted to the holders of Equity Share warrants at predetermined conversion rate of Rs. 103/- each during the year ended on 31.03.2009.

 

N) 23447240 Equity shares of Rs. 2/-each fully paid up allotted to the qualified institutional buyers at Rs. 105.50 each during the year ended on 31.03.2010

 

 

As on 23.07.2010

 

Authorised Capital :

 

No. of Shares

Type

Value

Amount

475000000

Equity Shares 

Rs.2/- each

Rs.950.000 Millions

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

 

No. of Shares

Type

Value

Amount

188045737

Equity Shares 

Rs.2/- each

Rs.376.091 millions

 

 

 

 

 

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

371.164

324.270

309.170

2] Equity Share Warrants

0.000

0.000

526.063

3] Reserves & Surplus

18764.754

12579.054

17571.403

4] (Accumulated Losses)

0.000

0.000

0.000
NETWORTH

19135.918

12903.324

18406.636

LOAN FUNDS

 

 

 

1] Secured Loans

72860.274

51795.735

38203.441

2] Unsecured Loans

2588.934

4775.706

4857.491
TOTAL BORROWING

75449.208

56571.441

43060.932

DEFERRED TAX LIABILITIES

3909.777

1991.433

4877.020
 

 

 

 
TOTAL

98494.903

71466.198

66344.588
 

 

 

 
APPLICATION OF FUNDS

 

 

 
 

 

 

 
FIXED ASSETS [Net Block]

39031.855

39554.969

34119.746
Capital work-in-progress

38849.824

20109.504

13737.703
 

 

 

 
INVESTMENT

3514.469

8968.579

932.872
DEFERREX TAX ASSETS

0.000

0.000

0.000
 

 

 

 
CURRENT ASSETS, LOANS & ADVANCES

 

 

 
 
Inventories

16328.649

16617.554

21946.498
 
Sundry Debtors

10597.367

5620.924

7536.563
 
Cash & Bank Balances

6875.024

6572.192

7403.155
 
Other Current Assets

0.000

0.000

0.000
 
Loans & Advances

8179.561

7466.728

8782.866
Total Current Assets

41980.601

36277.398

45669.082
Less : CURRENT LIABILITIES & PROVISIONS
 
 
 
 
Sundry Creditors

7374.084

5517.593

8499.549
 
Current Liabilities

14795.429

25677.647

16898.499
 
Provisions

2990.224

2532.234

2875.517
Total Current Liabilities
25159.737
33727.474
28273.565
Net Current Assets

16820.864

2549.924

17395.517
 

 

 

 
MISCELLANEOUS EXPENSES

277.891

283.222

158.750
 

 

 

 
TOTAL

98494.903

71466.198

66344.588

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2010

31.03.2009

31.03.2008

 

SALES

 

 

 

 

 

Income

57565.487

48533.071

51643.570

 

 

Other Income

168.486

197.995

291.195

 

 

TOTAL                                     (A)

57733.973

48731.066

51934.765

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Materials, Manufacturing and Others

43784.710

42283.636

40491.222

 

 

Personnel

1214.435

1099.741

1036.178

 

 

Administrative and Selling Expenses

1935.265

1755.879

2319.632

 

 

Miscellaneous Expenses

31.768

3.851

3.851

 

 

Exceptional Items

(2328.723)

5949.434

0.000

 

 

Other Expenditure

0.000

0.000

361.327

 

 

TOTAL                                     (B)

44637.455

51092.541

44212.210

 

 

 

 

 

Less

PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B)      (C)

13096.518

(2361.475)

7722.555

 

 

 

 

 

Less

FINANCIAL EXPENSES                         (D)

3993.883

3175.863

1493.494

 

 

 

 

 

 

PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D)                                       (E)

9102.635

(5537.338)

6229.061

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

3398.871

3130.786

2523.818

 

 

 

 

 

 

PROFIT BEFORE TAX (E-F)                               (G)

5703.764

(8668.124)

3705.243

 

 

 

 

 

Less

TAX                                                                  (H)

1918.942

(2869.920)

1293.569

 

 

 

 

 

 

PROFIT AFTER TAX (G-H)                                (I)

3784.822

(5798.204)

2411.674

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

--

625.061

NA

 

 

 

 

 

 

Denture Redemption Reserve Written Back

360.000

---

NA

 

 

 

 

 

Less

APPROPRIATIONS

 

 

 

 

 

Debenture Redemption Reserve

398.289

NA

NA

 

BALANCE CARRIED TO THE B/S

3746.533

(5173.143)

NA

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

 

 

 

 

 

Export Earnings

11108.780

12113.956

16822.710

 

 

Interest

132.632

194.969

107.632

 

 

Other Earnings

0.000

3.232

534.743

 

TOTAL EARNINGS

11241.412

12312.157

17465.085

 

 

 

 

 

 

IMPORTS

 

 

 

 

 

Raw Materials

14936.661

16141.331

24997.282

 

 

Stores & Spares

779.869

574.506

1513.258

 

 

Capital Goods

12712.222

2032.457

1698.335

 

 

Others

117.026

0.000

0.000

 

TOTAL IMPORTS

28545.778

18748.294

28208.875

 

 

 

 

 

 

Earnings Per Share (Rs.)

23.33

(35.87)

19.21

 

 

QUARTERLY RESULTS

 

PARTICULARS

30.06.2010

 

30.09.2010

31.12.2010

31.03.2011

30.06.2011

Net Sales

16274.500

17394.100

17308.300

17424.500

19768.800

Total Expenditure

13062.400

14880.600

14747.800

14891.000

16754.400

PBIDT (Excl OI)

3212.100

2513.500

2560.500

2533.500

3014.400

Other Income

7.600

4.000

0.100

(8.000)

2.600

Operating Profit

3219.700

2517.500

2560.600

2525.500

3017.000

Interest

845.500

837.900

747.500

899.600

1025.700

Exceptional Items

(50.700)

199.900

331.900

61.100

171.300

PBDT

2323.500

1879.500

2145.000

1687.000

2162.600

Depreciation

868.000

914.300

890.500

888.600

891.100

Profit Before Tax

1455.500

965.200

1254.500

798.400

1271.500

Tax

474.900

318.600

354.700

142.000

413.600

Provisions and contingencies

0.000

0.000

0.000

0.000

0.000

Profit After Tax

980.600

646.600

899.800

656.400

857.900

Extraordinary Items

0.000

0.000

0.000

0.000

0.000

Prior Period Expenses

0.000

0.000

0.000

0.000

0.000

Other Adjustments

0.000

0.000

0.000

0.000

0.000

Net Profit

980.600

646.600

899.800

656.400

857.900

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2010

31.03.2009

31.03.2008

PAT / Total Income

(%)
6.55
(11.90)

4.64

 

 
 
 

 

Net Profit Margin

(PBT/Sales)

(%)
9.90
(17.86)

7.17

 

 
 
 

 

Return on Total Assets

(PBT/Total Assets}

(%)
7.04
(11.43)

4.64

 

 
 

 

 

Return on Investment (ROI)

(PBT/Networth)

 
0.29
(0.67)

0.20

 

 
 

 

 

Debt Equity Ratio

(Total Liability/Networth)

 
5.46
7.00

3.88

 

 
 

 

 

Current Ratio

(Current Asset/Current Liability)

 
1.66
1.08

1.62

 

 

LOCAL AGENCY FURTHER INFORMATION

 

The details of sundry creditors

Rs. In Millions

Particulars

31.03.2010

31.03.2009

31.03.2008

Sundry Creditors – Others

7374.084

5517.593

8499.549

 

 

HISTORY

 

Subject is an ISO: 9001, ISO: 14001 and OHSAS 18001 certified company, is the flagship company of the Jindal Organization. The Company today, has come a long way from its incorporation in 29th September of the year 1980 as Jindal Ceramics Limited. The Company is India's largest stainless steel manufacturer with integrated melting, hot rolling and cold rolling facilities. The company produce standard and specialty stainless steel, in each of the 200, 300 and 400 series grades, for Kitenware, commercial and industrial applications. The company manufactures and sells a broad range of stainless steel flat products including slabs, blooms, flat bars, hot rolled and cold rolled coils, plates and sheets and special products including, precision strips and coin blanks. The Company's plants are situated in Haryana, Andhra Pradesh and Orissa. Subject is the fully integrated manufacturer of International standard Stainless Steel flat products in Austenitic, Ferritic and Martensitic grades; the company has strong export markets in over 40 countries including US, Europe, Middle-East and South Asian countries. The Company changed its name to Jindal Int.com Limited in 29th January of the year 2001. In order to create a focused stainless steel company, the business of Jindal Strips Limited was restructured by demerging the stainless steel business from Jindal Strips Limited to the Company and all the properties, assets, rights, powers and liabilities relating to the stainless steel undertaking of Jindal Strips Limited had been transferred to the Company with effective from April 1st 2002. During 2002-03 the company completed de-bottlenecking by augmenting the Stainless Steel melting capacity to 400,000 MT. The Company's name was renamed as Jindal Stainless Limited in 28th January of the year 2003. During April of the year 2003, the Austenitic Creations Private Limited and J-Inox Creations Limited were amalgamated with the company. Both the companies are in the business of Architecture, Building Construction sector. Subject had acquired an Indonesian company, PT. Maspion Stainless Steel and formalities has been completed in December 2004. Consequent of this acquisition, PT. Maspion Stainless Steel has become the subsidiary of the company and this Indonesian company has started commercial production. The Company had launched a premium range of beverage sets in designer stainless steel under the brand name Art d'inox and also in the same year of 2004 signed a stainless steel supply contract for US $ 18.5 million. During 2004-05 the company has entered into a technical assistance with Nisshin Company Limited, Japan to assist the company in improving quality of the finished products. Further the company has set up a service center at Gurgaon by way of subsidiary company in collaboration with an Italian company Steelwat s.r.l. Italy. The Life Style Product Division and Architecture Division of the company was hived-off to Austenitic Creations Private Limited and Jindal Architecture Limited respectively with effect from 1st April of the year 2005, vide its Order dated 13th July of the year 2006. The Company had entered into MoU with the Government of Orissa for setting up Stainless Steel project at Orissa in the year 2005-06. During the year 2006-07, the company commissioned its New Tension Leveler under Cold rolling division. In April of the year 2007, a new 220-tpd-Oxygen plant had been commissioned in Hot rolling division. Subject is expanding its operations through forward and backward integration and focusing on increased levels of productivity, quality and cost competitiveness. As at May 2008, The Company signed a Joint Venture Agreement with Antam Tbk to develop a nickel smelting and stainless steel facility in North Konawe, South East Sulawesi. Antam share in project 55% with Jindal owning a 45% share. The Company awarded the second phase of DTC Bus-Q-Shelters in June of the year 2008 by Delhi Transport Corporation DTC); the Second Build Own Transfer (BOT) project envisages putting up of approximately 400 Bus-QShelters uniquely designed and modeled in Stainless Steel.

 

CHANGE OF NAME

 

In order to more appropriately connect and reflect the core activity of the company, it is proposed to change of the company from “JSL Limited” to “JSL Stainless Limited”.

 

The Registrar of Companies, Delhi and Haryana has already granted availability of the said name. Accordingly a special resolution has been proposed in the ensuing annual general meeting to obtain consent of the shareholders pursuant to the provisions of section 21 of the Companies act, 1956 to change the name of the company from JSL Limited to JSL Stainless Limited.

 

 

FINANCIAL RESULT

 

Despite another challenging year for the global stainless steel industry, the Company has made a strong comeback from the global downturn effect of the previous year. It has set new landmarks for its operational performance amidst extra-ordinary challenges faced in terms of price volatiKty and demand reduction.
 
During the year, the turnover of the company has gone up by 15.57% at Rs.61194.400 millions as compared to Rs.52950.500 millions during previous financial year 2008-09. Profit before interest, depreciation, tax and exceptional item stood at Rs.10767.800 millions, up by 200 11% as compared to Rs.3588.000 millions during previous year. Net Profit after tax and extraordinary item is Rs.3784.800 millions in comparison to loss of Rs 5798.200 millions during previous year.

 

Operations
 
The Company is the largest integrated stainless steel Company in India producing diversified stainless steel flat products. Presently, it has three manufacturing facilities in India, located at Hisar in the state of Haryana, jajpur in the state of Onssa, and Vi.ag in the state of Andhra Pradesh. The facilities include captive chromite mines, ferro-alloy facilities, captive thermal power plants and stainless steel melting, hot rolling, cold rolling and downstream value-added facilities.
 
 (A) Hisar Division
 
 During the year ended March 31, 2010, the Hisar division implemented certain capital expenditures for productivity and efficiency improvements including intelligent refining system, carbon oxygen jet injection systems an improved pollution Control system at melting facilities to optimize resource utilization, save energy costs, and reduce environmental impact. During the year Hot rolling unit produced 677,841 tons of stainless steel slabs and 652,628 tons of hot rolled products. Also, as part of the Company’s initiation for forward integration, new pickling facility has been successfully commissioned increasing the Hot Rolled Annealing and Pickling capacity by 100,000 MT per annum which would cater to both domestic and export market. During the year, Cold rolling unit produced 200,177 tons of cold rolled annealed pickled (CRAP) and 112,648 tons of hot rolled annealed pickled  (HRAP) saleable products. Further, the special product division of the Company has produced 5,093 tons of coin blanks and 20,125 tons of special steel, during the year.
 
 (B) Orissa - Ferro Alloys, Captive Thermal Power Plant Division and Chromite Mines
 
The ferro-alloy production during the year has shown substantial growth. Ferro Alloys division produced 128,712 tons of ferro-alloys, which is the highest ever achievement of the Company. The production of power at 250 MW thermal power plant has also achieved highest ever generation of 1,589 million units. The sourcing of raw materials specially chrome ore and Manganese Ore remains an issue of substantial challenge for Ferro-Alloy division.
 
Chromite mines division produced 3,946 tons of Chrome Ore and 22,833 tons of concentrate chrome Ore. The Chrome Ore Beneficiation Plant-II commissioned in August, 2009.
 
 
(C)Vi2ag Division
 
The Vizag Plant produces High Carbon Ferro Chrome (HCFC) with annual capacity of 40,000 tons per annum. The chrome ore required for the production of HCFC is sourced from our chrome ore mines at Sukinda. The majority of our HCFC product is supplied to the Hisar division and the balance is sold in the export market. This division produced 32,681 tons of High Carbon Ferro Chrome during the year 2009-10 as compared to 31,901 tons during the preceding year.

 

FIXED ASSETS

 

·         Land

·         Building

·         Plant and Machinery

·         Electric Installation

·         Vehicles

·         Furniture, fixtures and equipments

·         Power line and bay extension

 

AUDITED STANDALONE FINANCIAL RESULTS FOR THE YEAR ENDED 31.03.2011

 

(Rs. in millions)

Particulars

Year ended 31.03.2011

 

 

 

Audited

Income from Operations

 

Gross Sales

 

 - Domestic 

58591.900

 - Export

14709.000

Total Sales

73300.900

Less: Excise duty on sales

5122.900

Net Sales

68178.000

Other Operating Income

223.400

Total Income

68401.400

 

 

Expenditure

 

a. (Increase)/Decrease in stock in trade and work in progress

(2408.900)

b. Consumption of raw materials

44547.900

c. Purchase of traded goods

1534.600

d. Stores and Spares

3057.200

e. Power and Fuel

5602.400

f. Employee Cost

1520.500

g. Depreciation / Amortisation

3561.400

h. Other expenditure

3728.200

Total Expenditure

61143.300

 

 

Profit from Operations before Other Income, Interest and Exceptional Items

7258.100

 

 

Other Income

3.700

 

 

Profit before Interest & Exceptional Items

7261.800

 

 

Interest (Net)

3330.500

 

 

Profit/ (Loss) after interest but before Exceptional Items

3931.300

 

 

Exceptional Items – Gain / (Loss) (Refer note no. 3)

542.200

 

 

Profit /Loss from Ordinary Activities before tax

4473.600

 

 

Tax Expense :

 

Provision for Current Tax 

892.200

Provision for Differed tax

534.900

Previous year tax adjustment

2.600

MAT credit (Entitlement)/Reversal

(139.500)

Net Profit /Loss for the period

3183.400

 

 

Paid-up equity share capital (Face Value of Rs.2/- each )

374.600

 

 

Reserves excluding Revaluation Reserves as per balance sheet of previous accounting year

22151.300

 

 

Earnings Per Share (EPS)

 

-Basic (Rs.)

17.12

-Diluted (Rs.)

16.71

Debentures Redemption Reserve

73.98

Debt Equity Ratio

3.81

Debt Service Coverage Ratio

3.20

Interest Services Coverage Ratio

8.09

 

 

EPS for the quarter (not annualized)

 

Public shareholding

 

-Number of shares

95245428

-Percentage of shareholding

56.12

 

 

Promoters and promoter group shareholding

 

a. Pledged/Encumbered

 

Number Of shares

65306625

Percentage Of Shares (as a %of the total shareholding of promoter and promoter group)

87.70

Percentage Of Shares (as a % of the total share capital of the company)

34.86

 

 

b. Non-encumbered

 

Number Of shares

9159405

Percentage Of Shares (as a % of the total shareholding of promoter and promoter group)

12.30

Percentage Of Shares (as a % of the total share capital of the company)

4.89

 

# This includes 22465480 equity shares, placed under lodgement / negative lien. “Total share capital includes 17604334 shares represented by 8802167 GDS.

 

AUDITED STATEMENT OF ASSETS AND LIABILITIES AS AT 31.03.2011

 

Rs. In Millions

Particulars

Year ended 31.03.2011 (Audited)

Shareholder Funds

 

a) Capital

374.600

b) Reserve and Surplus

22151.300

c) Employees Stock Option Outstanding (Net)

22.200

 

 

Loans Funds

85015.300

 

 

Deferred tax liability (Net)

4444.700

Total

112008.100

 

 

Fixed Assets

92329.200

 

 

Investments

1672.500

 

 

Current assets, loans and advances

 

a) Inventories

21087.200

b) Sundry Debtors

12570.800

c) Cash and Bank Balances

3293.800

d) Loans and Advances

9799.200

 

 

Less: Current Liabilities and Provisions

 

a) Liabilities

25133.800

b) Provisions

3853.900

 

 

Miscellaneous Expenditure (not written off or adjusted)

243.100

Total

112008.100

 

Note:

 

    1. The above results have been reviewed by the Audit Committee and have been taken on record by the Board of Directors in the respective meeting held on 26th and 27th May, 2011.

 

    1. Exceptional items for the year ended 31st March, 2011 represent fluctuations on foreign currency assets/liabilities (including loans)

 

    1. Orissa Phase II project:

 

(a)           Steel making facility of the Orissa phase II project with capacity of 0.8 million tpa has been installed at Jaipur, Orissa. The company has also started rolling of stainless steel products from the project.

 

(b)           The project initially conceived in SEZ is under process of de-bonding/de-notification due to the changing global business scenario. The company has received in-principal approval for de-notification of the notified sector specific SEZ for Stainless Steel and the approval for final de-notification is awaited from the Board of Approval, Ministry of Commerce and Industry, New Delhi.

 

(c)           The ramp-up and stabilization of finishing facilities under the project is expected during current financial year.

 

    1. On 19th April, 2011, the Board of Directors of the company has decided to continue with the existing period of twelve months as duration of the financial year i. e. starting from “1st April, 2010 to 31st March, 2011” in supersession of earlier decision of the Board of Directors taken in the meeting held on 10th February, 2011 to adopt “Calendar year” ad financial year.

 

    1. No investor complaint’s was pending as on 1st January, 2011. During the quarter ended 31st March, 2011, 2 complaints were received and resolved. No investor complaint’s is outstanding.

 

 

    1. As the company’s business activity falls within a single primary business segment viz. ‘stainless steel’, the disclosure requirement of Accounting Standard (AS-17) on “Segment Reporting” is not applicable.

 

    1. Diluted EPS of previous year has been recasted on the basis of total outstanding of FCCB USD 24.05 millions as on 31st March, 2010.

 

    1. The previous year figures have been regrouped wherever necessary.

 

 

WEB DETAILS

 

Profile

 

Stainless Steel


In 1912, an English metallurgist, Harry Brearly, accidentally discovered Stainless Steel. In the process of discovering an alloy to protect cannon bores in England, what came into existence was stainless steel. Ever since, the magic of this material has become an integral part of the lives.


From underground pipes to space, dairy equipment to pharma equipment, coins to automobiles. Stainless Steel is everywhere. Like they like to say, "Tomorrow definitely belongs to stainless steel".


The Group

 

Jindal Organization, set up in 1970 by the steel visionary Mr. O.P. Jindal, has grown from an indigenous single-unit steel plant in Hisar, Haryana to the present multi-billion, multi-national and multi-product steel conglomerate. The organization is still expanding, integrating, amalgamating and growing.


The group places its commitment to sustainable development, of its people and the communities in which it operates, at the heart of its strategy and aspires to be a benchmark for players in the industry the world over.


The Jindal Organization today is a global player. It's relentless quest for excellence has reaped rich benefits and it is today one of the worlds most admired and respected groups within the steel fraternity.


Jindal Stainless


Jindal Stainless is in many ways very much like the material it produces. Like stainless steel the company is versatile in its thought process, strong and unrelenting in its operations, environment friendly in its manufacturing process, bright, shining and beautiful in its community support activities. The list of the properties of stainless steel is endless, just as our values are all encompassing.


Jindal Stainless has always been committed to innovation and progression, research and development. The innovations are admired beyond the geographical boundaries of the country. No wonder they are the strategic partners of global leaders by choice. The achievements narrate a story of the determination to succeed and the passion to win. They will continue to leverage the opportunities in creating excellence that the world cannot even think about. Today they are the largest integrated stainless steel producer in India, tomorrow they will rule the world.


Jindal Stainless is a ISO: 9001 and ISO: 14001 company is the flagship company of the Jindal Organization. The company today, has come a long way from a single factory establishment, started in 1970. As the numero uno it has taken on the task of making stainless steel a part of everybody's life by taking a 360 degrees approach from production of raw materials to supply of architecture and lifestyle related products.


Hisar Plant, India


At Hisar, Jindal Stainless has India's only composite stainless steel plant for the manufacture of Stainless Steel Slabs, Blooms, Hot rolled and Cold Rolled Coils, 60% of which are exported worldwide.

 

  • Precision Strips

The company produces stainless steel precision strips in various grades. These strips are produced in narrow 20-Hi mills in the precision cold rolling unit.

 

  • Blade Steel

The company is the exclusive producer of stainless steel strips for making razor and surgical blades in India.

 

  • Coin Blanks

Besides supplying CR Strips to the Government of India, the plant at Hisar houses a coin blanking line for supply of coin blanks to the Indian Mint and Mints in the global markets.

 

Vizag - India


Jindal Stainless has a Ferro Alloy Plant at Vizag with an installed capacity of 40,000 metric tones per annum.


Orissa Project - India


Jindal Stainless is setting up a Greenfield integrated Stainless Steel project in the state of Orissa with capacity of 1.6 million tones per annum.

 

NEWS

 

PRESS RELEASE

 

Hermann Fechter and James Alistair inducted to JSL board

April 14, 2010

 

ISL, India's largest stainless steel producer, has expanded its board of directors by Inducting Jurgen Hermann Fechter and James Alistair Kirkland Cochrane as independent directors, the company said on Wednesaay.

 

The two new members inducted to the JSL board will add to the company's strength in the stainless steel business and provide vital knowledge and experience of the international markets, JSL said.

 

Jurgen Hermann Fechter is a member of the executive board of the VDEh Steel Institute (Stahlinstitut VDEh), a member of the board of directors of the International Stainless Steel Forum (ISSF) and chairman of the ISSF's market development committee.

 

Fechter was also a member of the executive board of ThyssenKrupp Stainless, AG, Germany where he had overall responsibility of stainless steel operations in Germany, Italy, China, Mexico and the USA and the international sales network, including numerous service centers, as well as the nickel alloys business and the titanium business with production sites in Germany and Italy.

 

Cochrane, who is currently president of the International Chromium Development Association, also heads the business development division of ENRC Marketing AG, responsible for leading the ENRC group's strategic planning, focusing on the organic development of the business and mergers and acquisitions.

 

JSL is India's largest stainless steel producer with 720,000 tpy of stainless steel making capacity.

 

The company is setting up a 1.6 million tpy integrated stainless steel plant in Orissa. ISL also operates 200,000 tpy of ferro-alloy capacity in Orissa.

 

 

 

 

CMT REPORT (Corruption, Money Laundering & Terrorism]

 

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

 

1]             INFORMATION ON DESIGNATED PARTY

No 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.45.69

UK Pound

1

Rs.75.29

Euro

1

Rs.65.77

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

8

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

7

--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

 

67

 

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

 

Financial condition (40%)         Ownership background (20%)                  Payment record (10%)

Credit history (10%)                 Market trend (10%)                                 Operational size (10%)

 

 

RATING 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

-

 

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.