BUSINESS INFORMATION REPORT
1. Summary Information
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Country |
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Company Name |
JINDAL SAW LIMITED |
Principal Name 1 |
MRS. SAVITRI DEVI JINDAL |
|
Status |
GOOD |
Principal Name 2 |
MR. PRITHVI R. JINDAL |
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|
|
Registration # |
20-023979 |
|
Street Address |
A-1,
UPSIDC INDUSTRIAL AREA, |
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Established Date |
31.10.1984 |
SIC Code |
-- |
|
Telephone# |
91-5662-252277 |
Business Style 1 |
MANUFACTURING
|
|
Fax # |
91-5662-232577 |
Business Style 2 |
-- |
|
Homepage |
Product Name 1 |
THICK
WALLED PIPES, SUBMERGED-ARC-WELDED PIPES |
|
|
# of employees |
1500 (APPROXIMATELY) |
Product Name 2 |
COLD-ROLLED
STEEL COILS |
|
Paid up capital |
RS.552,458,000/- |
Product Name 3 |
SEAMLESS
TUBES. |
|
Shareholders |
PROMOTER AND PROMOTER GROUP-46% PUBLIC SHAREHOLDING-54% |
Banking |
STATE BANK OF |
|
Public Limited Corp. |
YES |
Business Period |
27 YEARS |
|
IPO |
YES |
International Ins. |
-- |
|
Public |
YES |
Rating |
A (64) |
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Related
Company |
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Relation
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Country
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Company
Name |
CEO |
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DIRECT SUBSIDIARIES |
-- |
HEXA SECURITIES AND FINANCE COMPANY LIMITED |
-- |
|
Note |
--
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2. Summary
Financial Statement
|
Balance Sheet as of |
31.03.2011 |
(Unit: Indian Rs.) |
|
|
Assets |
Liabilities |
||
|
Current Assets |
21,788,767,000
|
Current Liabilities |
9,135,020,000
|
|
Inventories |
16,482,032,000
|
Long-term Liabilities |
16,116,598,000 |
|
Fixed Assets |
19,255,181,000 |
Other Liabilities |
2,857,783,000
|
|
Deferred Assets |
0,000 |
Total Liabilities |
28,109,401,000 |
|
Invest& other Assets |
10,795,295,000 |
Retained Earnings |
39,659,416,000 |
|
|
|
Net Worth |
40,211,874,000 |
|
Total Assets |
68,321,275,000 |
Total Liab. & Equity |
68,321,275,000 |
|
Total Assets (Previous year – For 15 months)) |
54,846,533,000 |
|
|
|
P/L Statement as of |
31.03.2011 |
(Unit: Indian Rs.) |
|
|
Sales |
41,879,465,000 |
Net Profit |
4,640,661,000 |
|
Sales (Previous year – For 15 months) |
67,774,635,000 |
Net Profit
(Previous year – For 15 months) |
7,231,682,000 |
MIRA
INFORM REPORT
|
Report Date : |
03.10.2011 |
IDENTIFICATION DETAILS
|
Name : |
JINDAL SAW LIMITED (w.e.f. February 07, 2005) |
|
|
|
|
Formerly Known
As : |
SAW PIPES LIMITED |
|
|
|
|
Registered
Office : |
A-1,
UPSIDC Industrial Area, |
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|
|
|
Country : |
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Financials (as
on) : |
31.03.2011 |
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|
|
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Date of
Incorporation : |
31.10.1984 |
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|
|
|
Com. Reg. No.: |
20-023979 |
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|
|
|
Capital
Investment / Paid-up Capital : |
Rs.552.458 millions |
|
|
|
|
CIN No.: [Company Identification No.] |
L27104UP1984PLC023979 |
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|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
AGRS10410B |
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|
|
|
Legal Form : |
A
Public Limited Liability Company. The company’s shares are Listed on the
Stock Exchanges. |
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|
|
|
Line of Business
: |
Manufacturing
of Thick Walled Pipes, Submerged-Arc-Welded Pipes, Cold-Rolled Steel Coils
and Seamless Tubes. |
|
|
|
|
No. of Employees
: |
1500 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
A (64) |
|
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 160847000 |
|
|
|
|
Status : |
Good |
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|
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Payment Behaviour : |
Regular |
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|
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Litigation : |
Clear |
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|
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Comments : |
Subject is a part
of Jindal Group, a reputed industrial house. It is a well established company
having fine track records. Financial position of the company appears to be
sound. 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) |
|
|
A1 |
A1 |
|
Risk Category |
ECGC Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
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High |
B2 |
|
Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
LOCATIONS
|
Registered Office/ Factory 1 : |
A-1 UPSIDC Industrial Area, |
|
Tel. No.: |
91-5662-252277/ 252224/ 232426/ 232001/ 02/ 03 |
|
Fax No.: |
91-5662-232577 |
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E-Mail : |
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Website : |
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Corporate Office : |
‘Jindal Centre’, 12, |
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Tel. No.: |
91-11-26188360–74/ 26188345 |
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Fax No.: |
91-11-26170691/ 41659575 |
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E-Mail : |
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Factories : |
MUNDRA - IPU Village: Samaghogha, Pragpar - Phone : 91-2838-240755-756, 240773 Fax : 91-2838-240700 MUNDRA - JCO S.No. 94/1, 94/2 and 96, Village: Nanakapaya Taluka: Mundra, District
Kutch – 370 415, Phone: 91-2838-287305-06 Fax : 91-2838-22700 NASHIK A-59-60 Fax : 91-2551-230967 |
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|
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Regional Offices : |
MUMBAI Phone : 91-22-23513000 Fax : 91-22-23521889 AHMEDABAD 601, Phone : 91-79-26431323 Fax : 91-79-26431433 H. No. 8-2-618/2/2/A, Plot No. 25, Road No. 10 , Classic Emerald Lane,
Near Rainbow Hospital, Banjara Hills, Hyderabad, Andhra Pradesh, India Phone : 91-40-55778694 / 95 6th Floor, East Wing, Phone : 91-80-25559869/ 73 Fax : 91-80-25598898 CHENNAI 4-B, Phone : 91-44-4213 2033, 4204 3737 Fax : 91-44-4204 3737 |
DIRECTORS
As on 31.03.2011
|
Name : |
Mrs. Savitri Devi Jindal |
|
Designation : |
Chairperson |
|
|
|
|
Name : |
Mr. Prithvi R. Jindal |
|
Designation : |
Vice Chairman |
|
|
|
|
Name : |
Mr. Indresh Batra |
|
Designation : |
Managing Director |
|
|
|
|
Name : |
Ms. Sminu Jindal |
|
Designation : |
Managing Director |
|
|
|
|
Name : |
Mr. Devi Dayal |
|
Designation : |
Director |
|
|
|
|
Name : |
Dr. S.K. Gupta |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Kuldip Bhargava |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Raj Kamal Agarwal |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Ravinder Nath Leekha |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. H.S. Chaudhary |
|
Designation : |
Whole Time Director |
KEY EXECUTIVES
|
Name : |
Mr. Sunil Jain |
|
Designation : |
Compliance Officer, Company Secretary |
|
|
|
|
Name : |
O. P. Sharma |
|
Designation : |
Chief Operating Officer - Large Dia. Pipe-SBU |
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|
|
|
Name : |
Vikram Puri |
|
Designation : |
Vice President-Human Resources |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 30.06.2011
|
Category of Shareholder |
No. of Shares |
Percentage of Holding |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
1,643,300 |
0.59 |
|
|
93,800,500 |
33.96 |
|
|
95,443,800 |
34.55 |
|
|
|
|
|
|
98,700 |
0.04 |
|
|
31,514,985 |
11.41 |
|
|
31,613,685 |
11.44 |
|
Total shareholding of Promoter and Promoter Group (A) |
127,057,485 |
46.00 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
24,626,010 |
8.92 |
|
|
181,269 |
0.07 |
|
|
7,042,436 |
2.55 |
|
|
59,836,710 |
21.66 |
|
|
91,686,425 |
33.19 |
|
|
|
|
|
|
41,191,205 |
14.91 |
|
|
|
|
|
|
14,316,476 |
5.18 |
|
|
715,505 |
0.26 |
|
|
1,260,425 |
0.46 |
|
|
507,660 |
0.18 |
|
|
738,945 |
0.27 |
|
|
13,820 |
0.01 |
|
|
57,483,611 |
20.81 |
|
Total Public shareholding (B) |
149,170,036 |
54.00 |
|
Total (A)+(B) |
276,227,521 |
100.00 |
|
(C) Shares held by Custodians and against which Depository Receipts
have been issued |
- |
- |
|
|
- |
- |
|
|
- |
- |
|
|
- |
- |
|
Total (A)+(B)+(C) |
276,227,521 |
- |
(1) Indian
Individuals / Hindu Undivided Family
Individual shareholders holding nominal share
capital up to Rs.0.100 millionBUSINESS DETAILS
|
Line of Business : |
Manufacturing
of Thick Walled Pipes, Submerged-Arc-Welded Pipes, Cold-Rolled Steel Coils
and Seamless Tubes. |
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Products : |
|
PRODUCTION STATUS (AS ON 31.03.2011)
|
Particulars |
Unit |
Installed
Capacity per Annum |
Actual
Production |
|
(a) Iron and Steel Pipes |
MT |
2,260,000 |
692,309 |
|
(b) Anti-Corrosion Coating on Pipes |
Sq.Mtr |
12,000,000 |
4,255,903 |
|
(c) Pig Iron |
MT |
200,000 |
375 |
|
(d) Power |
KWH in lacs |
1971 |
938 |
Notes:
1. The above production also includes goods
manufactured for outside parties on job work basis as follows:
|
|
Unit |
Year ended 31st
March, 2011 |
|
i) Steel Pipes |
MT |
2,117 |
|
|
|
|
2. Above Production includes production before
start of Commercial production.
3. The above production of Anti Corrosion
coating of Pipes includes the coating done for Steel Pipes Division
4. Licensed capacity is not applicable in view
of the Company’s products having been delicensed as per the Liberalised
Licensing Policy announced by the Government of India.
5. Installed capacity is as certified by the
management.
6. The above production of Power includes
Captive consumption of 898 lacs KWH.
GENERAL INFORMATION
|
Customers : |
Domestic Customers v Aban Constructions Limited v
Bharat
Petroleum Corporation Limited v
Assam
Gas Company Limited v
Engineers
India Limited v
Engineers
India Limited v
GAIL
( v
Indian
Oil Tanking Limited v
Hindustan
Petroleum Corporation Limited v
Gujarat
Gas Company Limited v
Indian
Oil Corporation v
IBP
Limited v
IBP
Limited v
Oil
and Natural Gas Corporation Limited v
SHELL
Hazira LNG Private Limited International Customers v
AGIP,
v
Abu
Dhabi Gas Industries Limited (GASCO), UAE v
Center
Point Energy Gas Transmission, v
Burullus
Gas Co., v
China
National Petroleum Company, v
DODSAL,
UAE v
International
Petroleum Investment Company, v
Kuwait
Oil Company, v
Man
GHH Oil And v
PEDCO
v
Oman
Gas Company – v
PETRONAS
– v
v
TECHNIP
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No. of Employees : |
1500 (Approximately) |
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Bankers : |
v
State Bank of v
Canara Bank, 6, v
State Bank of v Standard Chartered Bank v ICICI Bank Limited v Axis Bank Limited v
State Bank of v Calyon Bank Limited v Karnataka Bank v Punjab National Bank v ING Vysya Bank Limited v
Bank of v Axis Bank Limited v
Bank of v HDFC Bank Limited v Syndicate Bank v State Bank of Travancore v
United Bank of v Karnataka Bank Limited |
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Facilities : |
Notes: A. Term Loans from Banks include: (i) Loans of Rs.0.824 million (Previous period Rs.2.636 millions) for purchase of vehicles are secured by way of hypothecation of vehicles. (ii) Term Loan of Rs.335.580 millions (Previous period Rs.666.700 millions) is secured by way of mortgage of Company’s immovable properties and hypothecation of moveable fixed assets both present and future and also by way of personal guarantee of a director. (iii) Housing loan of Rs.3.116 millions (Previous period
46.613 millions) which is secured by way of exclusive charge on the Company’s
House Property situated in B. Working Capital Loans and Buyer Credit are secured by hypothecation of finished goods, raw-materials, work-in-progress, stores and spares, book debts and secured! to be secured by second charge in respect of other moveable and immoveable properties of the Company.
Notes: (i) Deferred Sales Tax loans amounting to Rs.212.299 millions are guaranteed
by one of the Directors. (ii) External Commercial Borrowing were repaid on 29th
September 2010. (iii) The Foreign Currency Convertible Bonds (FCCB) were convertible
upto the close of business on 24th June 2011 by holders of the
Bonds into newly issued equity shares of Rs.2 each of the company at the
option of the Bondholder, at a base conversion price of Rs.135 per share with
a fixed rate of exchange on conversion of JPY 2.533 Re.1.00 after adjustments
as per terms and conditions of issue of bonds and the same have since been
redeemed on 29th June, 2011. |
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Banking Relations
: |
-- |
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Statutory Auditors
: |
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|
Name : |
N.C. Aggarwal and Company Chartered
Accountants |
|
Address : |
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Internal Auditors :
|
Singhi
and Company Chartered
Accountants T.R.
Chadha and Company Chartered
Accountants |
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Subsidiaries : |
Direct
Subsidiaries: v
Hexa Securities and Finance Company Limited v
Jindal ITF Limited v
IUP Jindal Metal and Alloys Limited v
S.V. Trading Limited v
Jindal Saw Holdings FZE v
Hexa Tradex Limited (w.e.f. 28th
October, 2010) Indirect
Subsidiaries (Control Exist): v
Jindal Saw v
Jindal Saw Middle v
Jindal Intellicom Limited (formerly known as
Jindal Intellicom Private Limited) v
JITF Water Infrastructure Limited (formerly known
as Jindal Water Infrastructure Limited) v
JITF Urban Infrastructure Limited (formerly known
as Jindal Urban Infrastructure Limited) v
JITE Shipyards Limited (formerly known as Jindal
Shipyards Limited) v
Jindal Rail Infrastructure Limited v
JITF Waterways Limited (formerly known as Jindal
Waterways Limited) v
JITF Infralogistics Limited (formerly known as
Jindal Infralogistics Limited) v
JITF Water Infra (Naya Raipur) Limited (formerly
known as Jindal Water Infra (Naya Raipur) Limited v
JITF ESIPL CETP (Sitarganj) Limited (formerly
known as Jindal ESIPL CETP (Sitarganj) Limited) v
Timarpur-Okhla Waste Management Company Private
Limited v
Jindal Saw Gulf LLC v
Ralael Holdings Limited (w.e.f. 9th
July, 2010) v
Jindal Saw Italia S.r,l (w.e.f. 1st
October, 2010) v
JITF Urban Infrastucture Services Limited (w.e.f.
6th July, 2010) v
Intellicom Insurance Advisors Limited (w.e.f. 9th
August, 2010) |
|
|
|
|
Joint Venture : |
v
JITF Manila Water Development Company Limited
(w.e.f. 3rd May, 2010) v
Jindal Sigma Limited (w.e.f. 26th
July, 2010) |
CAPITAL STRUCTURE
As on 31.03.2011
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
500000000 |
Equity Shares |
Rs.2/- each |
Rs.1000.000 millions |
|
10000000 |
Redeemable Non
Convertible Cumulative Preference Shares |
Rs.100/- each |
Rs.1000.000 millions |
|
|
Total |
|
Rs.2000.000 millions |
Issued & Subscribed Capital:
|
No. of Shares |
Type |
Value |
Amount |
|
276230771 |
Equity Shares |
Rs.2/- each |
Rs.552.462
millions |
|
10000000 |
7.85% Redeemable
Non Convertible Cumulative Preference Shares (Note 4) |
Rs.100/- each |
-- |
|
|
Total |
|
Rs.552.462 millions |
Paid-up Capital:
|
No. of Shares |
Type |
Value |
Amount |
|
276226771 |
Equity Shares |
Rs.2/- each |
Rs.552.454 millions |
|
|
Add: Forfeited 4000
Equity Shares of Rs.2/- each (Partly Paid up Re.1/- each) |
|
Rs.0.004 million |
|
10000000 |
7.85% Redeemable Non Convertible Cumulative Preference Shares (Note 4)
|
Rs.100/- each |
-- |
|
|
Total |
|
Rs.552.458 millions |
NOTES:
1. OF THE ABOVE EQUITY SHARES:
(a) 10040000 and 33069680 were allotted
pursuant to contract and schemes of Amalgamation respectively without payment
being received in cash.
(b) 128980860 were allotted as bonus shares by
capitalising Reserves and Securities Premium.
(c) 3250 shares have been held in abeyance and
not allotted as a result of attachment orders by Government authorities, lost
share certificates and other disputes.
2. During the year, 8932 Foreign Currency
Convertible Bonds were converted into 2612036 equity shares of Rs.2/- each at
the option of Bondholders.
3. Options on Un-issued Share Capital
Foreign Currency Convertible Bond holders
holding Bonds for aggregate amount of JPY 5896800000 had an option to convert
the same upto 24.06.2011 into equity shares of Rs.2/- each at conversion price
of Rs.135/- per equity share with a fixed rate of exchange on conversion of JPY
2.533 Rs.1.00 after adjustment as per terms and conditions of issue of bonds.
4. Preference Shares have been redeemed during
the year.
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2011 (12 Months) |
31.03.2010 (15 Months) |
31.12.2008 (12 Months) |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
552.458 |
1547.234 |
1521.225 |
|
|
2] Share Application Money |
0.000 |
0.000 |
212.940 |
|
|
3] Reserves & Surplus |
39659.416 |
34865.264 |
21772.900 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
40211.874 |
36412.498 |
23507.065 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
7857.624 |
891.890 |
7205.830 |
|
|
2] Unsecured Loans |
8258.974 |
6478.698 |
9159.828 |
|
|
TOTAL BORROWING |
16116.598 |
7370.588 |
16365.658 |
|
|
DEFERRED TAX LIABILITIES |
2266.478 |
1858.078 |
1106.161 |
|
|
|
|
|
|
|
|
TOTAL |
58594.950 |
45641.164 |
40978.884 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
19255.181 |
18665.434 |
10852.698 |
|
|
Capital work-in-progress |
4252.211 |
2666.760 |
8004.513 |
|
|
|
|
|
|
|
|
INVESTMENT |
6543.084 |
6198.712 |
2153.149 |
|
|
DEFERRED TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
16482.032
|
7902.667
|
16429.858
|
|
|
Sundry Debtors |
12346.114
|
7940.611
|
11886.054
|
|
|
Cash & Bank Balances |
932.328
|
1656.094
|
1408.153
|
|
|
Other Current Assets |
0.000
|
0.000
|
0.585
|
|
|
Loans & Advances |
8510.325
|
9816.255
|
4168.537
|
|
Total Current Assets |
38270.799
|
27315.627
|
33893.187
|
|
|
Less : CURRENT LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
2533.868
|
2372.423
|
2690.582
|
|
|
Other Current Liabilities |
6601.152
|
5956.099
|
10443.946
|
|
|
Provisions |
591.305
|
876.847
|
790.135
|
|
Total Current Liabilities |
9726.325
|
9205.369
|
13924.663
|
|
|
Net Current Assets |
28544.474
|
18110.258
|
19968.524
|
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
58594.950 |
45641.164 |
40978.884 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2011 (12 Months) |
31.03.2010 (15 Months) |
31.12.2008 (12 Months) |
|
|
|
SALES |
|
|
|
|
|
|
|
Sales and Operational Income |
41879.465 |
67774.635 |
50031.855 |
|
|
|
Other Income |
363.513 |
175.951 |
100.657 |
|
|
|
TOTAL (A) |
42242.978 |
67950.586 |
50132.512 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of Material Consumed/ Sold |
25003.927 |
41374.499 |
36334.770 |
|
|
|
Manufacturing Expenses |
4344.075 |
4936.118 |
3852.774 |
|
|
|
Employees Remuneration and Benefits |
2050.179 |
2090.668 |
1323.734 |
|
|
|
Administrative and Other Expenses |
584.678 |
968.939 |
464.677 |
|
|
|
Selling Expenses |
1783.914 |
3490.097 |
3018.220 |
|
|
|
Increase/Decrease in Stock |
(180.436) |
2207.190 |
(1968.175) |
|
|
|
Excise Duty on Increase/ Decrease in Stock |
44.746 |
49.447 |
(1.601) |
|
|
|
TOTAL (B) |
33631.083 |
55116.958 |
43034.399 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
8611.895 |
12833.628 |
7108.113 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
1190.665 |
1841.849 |
1758.408 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
7421.230 |
10991.779 |
5349.705 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
1366.644 |
1312.695 |
705.805 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
6054.586 |
9679.084 |
4643.900 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
1413.925 |
2447.402 |
1220.634 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
4640.661 |
7231.682 |
3423.266 |
|
|
|
|
|
|
|
|
|
Add |
DEBENTURE REDEMPTION
RESERVE WRITTEN BACK |
-- |
187.500 |
187.500 |
|
|
|
|
|
|
|
|
|
Add |
FOREIGN EXCHANGE
TRANSLATION DIFFERENCE |
0.092 |
0.665 |
(71.545) |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS YEARS’
DEPRECATION WRITTEN BACK |
-- |
11.823 |
5.091 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS YEAR
TAXATION ADJUSTMENT |
(25.055) |
60.041 |
(98.900) |
|
|
|
|
|
|
|
|
|
Add |
SURPLUS BROUGHT
FORWARD ON AMALGMATION |
-- |
34.885 |
0.000 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
2191.203 |
2181.712 |
4133.039 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Interim Dividend paid on Preference Shares |
35.701 |
94.415 |
56.563 |
|
|
|
Corporate dividend tax on above |
5.930 |
16.046 |
9.614 |
|
|
|
Proposed Dividend-On Equity Shares |
276.228 |
345.284 |
260.607 |
|
|
|
-On Preference Shares |
-- |
3.441 |
21.937 |
|
|
|
Corporate Tax on Proposed Dividend Tax |
44.811 |
57.919 |
48.018 |
|
|
|
General Reserve |
4000.000 |
7000.000 |
5000.000 |
|
|
|
Capital Redemption Reserve |
1000.000 |
-- |
-- |
|
|
BALANCE CARRIED
TO THE B/S |
1444.231 |
2191.203 |
2181.712 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
F.O.B. Value of Exports |
15792.493 |
25916.066 |
23455.755 |
|
|
|
Revenue from Overseas Branch |
0.000 |
35.224 |
2796.637 |
|
|
|
Interest |
22.413 |
37.703 |
67.450 |
|
|
|
Conversion Charges |
2.780 |
0.000 |
0.000 |
|
|
|
Carbon Credits |
59.952 |
0.000 |
0.000 |
|
|
|
Others |
0.780 |
0.000 |
0.000 |
|
|
TOTAL EARNINGS |
15878.418 |
25988.993 |
26319.842 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
21385.261 |
23783.918 |
23823.337 |
|
|
|
Stores & Spares |
391.650 |
255.056 |
283.907 |
|
|
|
Capital Goods |
507.355 |
973.509 |
3314.268 |
|
|
TOTAL IMPORTS |
22284.266 |
25012.483 |
27421.512 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
|
|
|
|
|
|
- Basic |
16.57 |
27.01 |
12.49 |
|
|
|
- Diluted |
16.00 |
25.12 |
12.16 |
|
QUARTERLY RESULTS
|
PARTICULARS |
|
|
30.06.2011 |
|
Type |
|
|
1st
Quarter |
|
Net Sales |
|
|
11356.400 |
|
Total Expenditure |
|
|
9574.800 |
|
PBIDT (Excl OI) |
|
|
1781.600 |
|
Other Income |
|
|
13.900 |
|
Operating Profit |
|
|
1795.500 |
|
Interest |
|
|
256.200 |
|
Exceptional Items |
|
|
0.000 |
|
PBDT |
|
|
1539.300 |
|
Depreciation |
|
|
353.900 |
|
Profit Before Tax |
|
|
1185.400 |
|
Tax |
|
|
357.400 |
|
Provisions and contingencies |
|
|
0.000 |
|
Profit After Tax |
|
|
828.000 |
|
Extraordinary Items |
|
|
0.000 |
|
Prior Period Expenses |
|
|
0.000 |
|
Other Adjustments |
|
|
0.000 |
|
Net Profit |
|
|
828.000 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2011 (12 Months) |
31.03.2010 (15 Months) |
31.12.2008 (12 Months) |
|
PAT / Total Income |
(%) |
10.99
|
10.64
|
6.83
|
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
14.46
|
14.28
|
9.28
|
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
10.52
|
21.05
|
10.38
|
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.15
|
0.27
|
0.20
|
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
0.64
|
0.46
|
1.29
|
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
3.93
|
2.97
|
2.43
|
LOCAL AGENCY FURTHER INFORMATION
HISTORY
Subject (erstwhile SAW Pipes Limited) is a part of the Jindal
Group and one of the country's largest producers of Submerged Arc Welded (SAW)
pipes, which is widely used in the energy sector for the transportation of oil
and gas. The Company was incorporated in 31st October of the year
1984 at Mathura (U.P.) and obtained the Certificate of Commencement of Business
in 28th November of the same year. Subject has diversified from a
single product company to a multi-product company, manufacturing large diameter
submerged arc pipes and spiral pipes and bends for the energy transportation
sector; carbon, alloy and stainless steel seamless pipes and tubes manufactured
by conical piercing process used for industrial applications; and Ductile iron
(DI) pipes for water and sewage transportation. At subject, the business operations
are highly structured with four strategic business units: Large Diameter Pipes,
Seamless Tubes, DI (Ductile Iron) Pipes and the US Operations. The
state-of-the-art manufacturing facilities of the company are located at three
places in
Subject is reassured through the ISO 9001, ISO 14001 and ISO
18001 certifications. The technical collaboration agreement was made with USS
Engineers and Consultants Inc (UEC), U.S.A., a subsidiary of United States
Steel Corporation in the incorporated year itself for transfer of know how and
technical assistance.
During the year 1986, the Country's first Longitudinal SAW
Pipes (U-O-E) Mill for Line Pipes commissioned at Kosi Kalan with API and ISO
accreditation. Bevelling Unit Commissioned at Kosi Kalan in the year 1992 and
also SAW Pipes,
During the year 1996, subject commissioned its CTE Mobile
Coating Plant at Kosi Kalan. After a year, in 1997, the Hot Induction Bends Unit
of the company was established at Kosi Kalan and also start up of 4 meter wide
Plate Mill at Baytown, USA and also had sets up a joint venture company to
market its products in the US. During the year 1999, Port-based 100% Export
Oriented LSAW and HSAW Line Pipe Plants of the company was commissioned at
Mundra with API and ISO accreditation and also in the same year an Internal
Coating Plant commissioned at Kosi Kalan. The 3 LPE/FBE Coating Plant
commissioned at Mundra in the year 2000 and another one Internal Coating Plant
of the company was commissioned at Mundra. In 2002, company re-commissioned its
concrete Weight Coating Plant at Mundra and the Bevelling Unit was commissioned
at Mundra. An additional Plant for 3LPE/FBE was commissioned in the year 2003
at Mundra. In the year 2004, the third LSAW manufacturing facility was
specially made at Samaghogha near Port Mundra with accreditation from API and
ISO. Also in the same year 2004, subject entered into a Joint Venture Agreement
with Imphy Ugine Precision, France, one of the divisions of Arcelor Group for
manufacturing of High Precision Metal Equipments to be used in Electronic
Industries and other applications and had set up the JV Company under the name
of IUP Jindal Hexa Metals Limited, the Company has transferred its Swastik
Foils Division into the joint venture company and it is holding 73% in the
joint venture company.
During the year 2005, the company had start up an Integrated
Pipe Unit Ductile Iron Pipe manufacturing plant of 200,000 MT per annum
capacity along with Blast Furnace of 250,000 MT per annum capacity and a Coke
Oven Plant. In the year 2004-05, the company had created four separate
strategic business units (SBU) to improve and maximize the operational
efficiency. The name of the company was changed from Saw Pipes Limited to
subject with effect from 11th January of the year 2005. During the year
2005-06, the new capacitors were installed on each welding station to improve
the power factor resulting into less consumption of electricity. During the
year 2006-07, the company successfully completed/commissioned its Sinter Plant,
de-bottlenecking of the DI pipe facility for increase in pipe production. Slag
Granulation plant also put into trial use. subject forayed into urban
infrastructure projects in February of the year 2008, company sees the urban
infrastructure projects contributing a greater share of company's revenue in
the next five years as the country increases spending on infrastructure
projects to sustain high level of economic growth. The company secured a
contract from NDWPCL - a joint venture between the Delhi Government and ILandFS
- to develop a 16 MW waste based power plant.
As of March 2008, company vsigned on Grey Worldwide as its
creative partner. The Company recently secured the Cairn Energy contract for
supply of pipes covering 600 kilometers, worth $200 million. Company will
expand the capacity of its plant to 220000 tonnes a year, with an investment of
Rs.3500.000 Millions. 'The Company will expand its seamless tube making plant
in
REVIEW OF OPERATIONS
Review of operations of the Company;
The accounting year 2010-11 ended as on March 31, 2011 reflects the operations of 12 months period as against 15 months during the previous period which ended as on March 31, 2010.
The slowdown in the pipe demand, increase in competition and higher input prices affected the operations of the Company during the year. The Company witnessed lower volumes of production and sales which led to lower turnover and profits after tax. However, the Company was able to maintain the operating profits per metric ton, to a large extent.
The turnover of Rs.43452.600 millions during 2010-11 was lower by approx. 22% as against 2009-10, on pro-rata basis. Similarly the profit after tax was also lower by almost 20% on prorata basis. The profit after tax was at 10.68% during 2010-11 as against 10.37% in 2009-10.
New Projects / Note
on working and review of subsidiaries including JV and Associate Companies;
The company is in the process of executing projects in
During the year the Company executed Mine Lease Agreement with the Government of Rajasthan for iron ore mines in Bhilwara District. The Company has initiated steps to commercially exploit the Iron Ore Mines as per the policy prevalent in this regard.
The Company is
executing a Ductile Iron Pipe facility
in
Jindal ITF Limited
In 2008, the Company
set up 100% subsidiary, Jindal ITF (JITF))
Limited, which operates in four
broad segments, Water Infrastructure,
Urban Solid Waste Management, Coastal Shipping and Fabrication
of Railway wagons. All the businesses
are in growing/ implementation stage and will take sometime to scale up. JITF has also signed a
Tripartite Agreement for transportation of
coal from east coast of
JITF Water Infrastructure Limited (JWIL) provides infrastructure for solid waste and potable water, targeting EPC, BOOT (Build-Own-Operate-Transfer) and OEM projects. JWIL is implementing one of the most prestigious projects in water sector for Naya Raipur development authority on BOT basis.
JITF Waterways Infrastructure Limited (JWWL) was incorporated to cant' business activities in the coastal shipping as well as in the inland waterways sector. Currently JWWL owns seven cargo ships and one barge with a total capacity of Approx. 45000 DWT.
JITF Urban Infrastructure Limited (JUIL) provides
infrastructure for solid waste management.
JUIL is implementing a municipal
solid waste-to-power project in
Jindal ITF received
Frost and Sullivan award for Waste to Energy Deal of the
Year for the Year 2010 in the
Municipal Waste to Energy Segment in lieu of the
Jindal Rail
Infrastructure Limited (JRIL) is currently setting up a wagon manufacturing facility at Karjan in
Other Subsidiaries/
Joint ventures/ Affiliates
IUP Jindal Metal and Alloys Limited, (IUP Jindal) manufactures stainless steel and nickel alloy precision foils at IUP-Jindal.
The company has few subsidiaries and affiliates which are in the nature of special purpose vehicles. In subsequent periods, the Company may have operations / marketing activities through these vehicles.
REDEMPTION OF FCCB/
PREFERENCE SHARE CAPITAL
Foreign Currency Convertible Bond (FCCB) holders holding Bonds for aggregate amount of JPY 5896800000 had an option to convert the same upto 24.06.2011 into equity shares of Rs. 2/- each at conversion price of Rs.135/- per equity share with a fixed rate of exchange on conversion of JPY 2.533= Re.1.00 (after adjustment as per terms and conditions of issue of Bonds). Since the option to convert the Bonds was not exercised, these Bonds have since been redeemed fully on June 29, 2011. Presently, there are no outstanding options on un-issued share capital.
Preference Shares aggregating upto Rs.1000.000 millions have been redeemed during the year.
DEMERGER OF
INVESTMENT DIVISION
The conformation petition to sanction the Scheme of Arrangement and Demerger proposing to demerge Investment Undertaking of the Company w.e.f. 1st January, 2011 (Appointed Date) to Hexa Tradex Limited is pending before Hon'ble High Court of judicature at Allahabad.
MANAGEMENT DISCUSSION
AND ANALYSIS
Overview:
They are a leading
Indian and most diversified manufacturer and supplier of pipe
products for the energy and water Industry and for other
Industrial applications. Their customers Include most of the world's
leading oil and gas companies, municipal corporations as well as engineering
campaniles engaged In constructing oil
and gas gathering, water transportation system,
power and automobiles facilities.
Their principal products Include
(a) large diameter SAW
pipes (LSAW and HSAW), (b) seamless pipes and tubes,
and (c) ductile Iron
(DI) pipes. Their
manufacturing facilities are
located In various parts In western, northern and southern part
of
In DI Pipe segment, so far they were focussed on the growing domestic market. However, they now Intend to have presence In global market space as well. To achieve the same, following steps have been taken: (a) setting up a DI pipe plant In India with focus on export markets; (b) setting up a state-of-the-art DI pipe plant In Abu Dhabi (UAL) primarily for MLNA region and West Asia and (c) executed a business lease transaction with an Italian (Larrup) DI Pipe producer for operations and sales In Lurope and other markets.
They have also executed a Mines Lease Agreement with
Government of Rajasthan In relation
to Iron Ore Mines, In Bhilwara
District. To commercially exploit the
same, the Company Is In the process of setting up
necessary Infrastructure
Including the beneficiation plant which Is expected to be
operational In next few months' time. The availability of
Pipe Industry
Dynamics
The oil and gas companies are the largest consumers of steel pipes that are used for both oil and gas exploration and transportation purposes. Hence, demand from the global oil and gas sector Is a major driver of growth for this Industry. Other key economic drivers for the steel pipe Industry Include water and sewage Infrastructure, power, automobile and general engineering Industries.
Whereas the demand for seamless pipes Is primarily driven by exploration activity In petroleum producing countries, the demand for welded pipes Is manly driven by oil and natural gas transportation activity In petroleum exporting and key consumer countries. Ductile Iron pipes demand Is driven by spend on water and sewage Infrastructure as they are mainly used In transportation of water and sewage.
In
The pipeline Infrastructure In India has been poor despite It being more eco-friendly, safe and cost-effective mode of transportation
Demand Drivers for
SAW pipe segment
The construction of pipeline Infrastructure In India has seen a major spurt In the last few years as the spending on exploration and production has Increased. The strategy of enhancing domestic exploration and production (L and P) through New Exploration and Licensing Policy (NLLP) has resulted In major Investment In the exploration of oil and gas reserves In the country. The commencement of production of natural gas from Reliance Industries Limited's Krishna Godavarl (KG) fields and commencement of production of crude oil from Cairn India Limited's field In Rajasthan are major achievements of this Policy.
This along with the changing energy map towards Increasing
natural gas usage Is
likely to give an Impetus to the
demand for pipeline
network expansion. Though natural
gas forms only 9% of
In the International markets, the business potential for the pipes segment In the oil and gas transportation space Is estimated to be around USE) 69 billion (as per market study done by Simdex). This well be mainly driven by:
v Replacement of the old pipelines In US and Middle Last. As per estimates from American Gas Association, close to 500,000 km of oil and gas pipeline was laid In the US during the 1960s. Since, the useful Life of pipelines ranges from 30 to 50 years, replacement for old pipelines Is expected to generate substantial demand for welded pipes.
v
New Gas
is required to replace annual decline in existing gas supplies in
v Shale Gas gradually increase its share in total gas requirement in US
v Alaska Pipeline project -another boost to the demand for pipes
Demand Drivers for DI
segment
Likewise, the present
low penetration level of water supply in
In
v Non-uniform distribution of water;
v Contamination;
v Leakages; and
v Short life span of equipment
Currently, 10% of the global population does not have access
to water supply. In
in the water
quality, cost and time over-runs
in the completion
of irrigation and multi-purpose
projects and poor maintenance of
the existing systems. Of
course, the most important challenge
is to appropriately address the natural disasters
related to water i.e. flood and drought. As a result of growing population, the
per capita water availability of
Government of
JNNURM is envisaged for implementation over 7 years period starting from 2005 to 2012 with a tentative out lay of Rs.1000000.000 millions, which includes contribution of Rs.500000.000 millions to be made by the States. Water supply and sanitation is accorded priority under the programme and is likely to receive 40% of plan funds. The 10th Five Year Plan provides Rs.621 bn for water supply and sanitation, which is at all time high.
The total outlays in the Eleventh Five Year Plan (2008-12) for Rural Water Supply and Sanitation sector would be close to Rs.1000000.000 millions. The total outlay for Urban Water Supply and Sanitation sector would be Rs.750000.000 millions. However, the results achieved so far under the various government schemes have not been commensurate with the huge investments made and, as a result, water scarcity still persists.
This provides a
significant business opportunity
for usage of
more sustainable and efficient modes of water transportation in
Demand Drivers for
Seamless Pipes and Tubes
Demand for seamless
pipes and tube is driven by oil
and gas exploration drilling (OCTG), and applications
like boilers, autos and other industrial
segments. It is expected that, global
seamless pipe demand will increase gradually. Demand should be driven by
The increase/decrease of the rig counts is a reasonable indicator and important business barometer for the drilling industry and also for the demand of the seamless pipes. As per Baker Hughes, the average rig counts for the world for 2009 was 2304 which increased to 2985 in 2010 and the average for January 2011 to July 2011, the same stands at 3328. This reflects a consistent improvement in rig counts which should have a positive impact of the demand of the seamless pipes.
Subject’s Operations
and strategy
Jindal Saw currently carries out its business in two distinct undertakings including (a) Pipe manufacturing business undertakng and (b) Investment business undertaking. Both the activities are distinct and diverse in their business characteristics, growth trajectories, risk profiles and require entirely different approaches.
Pipe manufacturing
business undertaking
Jindal Saw Limited is the most diversified Indian pipe Company with capacity that caters for oil and gas utility companies (SAW pipes), exploratory drilling and industrial capex-related industries (seamless pipes), and water infrastructure (DI pipes). The Company follows a strategy to de-risk its business model by way of horizontal expansion as well as by diversifying in the high value added business areas. Company' Initiative in Iron ore mining would not only provide a stable source of Iron ore for Its DI pipe making facilities in India but the value addition is expected to boost Its profitability, in the time to come.
The Company believes that a right blend of sales in domestic and global markets with low cost of operations would Improve the credit quality and provide superior returns to Its shareholders. The Company is also mindful of short to medium term market challenges and thus Intends to create a model for long term sustainability. Jindal Saw- strategic vision The Company' strategic vision includes:
Focus on manufacturing higher-growth and higher-margin products (seamless pipes, especially OCTG).
Enhancing seamless and welded pipe product mix to Increase product margins and revenues per tonne.
Expanding seamless pipe production by Investing in technologically advanced production processes.
Increasing output of large-diameter welded pipes for the oil and gas Industry.
Positioning the Company as a global producer and supplier of DI Pipes by having capacities in various parts of the world and through strategic alliances.
Capitalize on Iron Ore mines for long term sustainable benefits while complying to all the regulations Jindal Saw - Competitive Strengths The Company's main competitive strengths include:
a) Its multi-location and primarily port based production facilities;
b) Its most diversified product range;
c) Its solid and diversified customer base and historic relationships with major International oil and gas companies around the world;
d) Its proximity to customers;
e) Its human resources;
f) Its low-cost operations, primarily at state-of-the art, strategically located production facilities with favorable access to raw materials, energy and labour, and 26 years of operating experience; and
g) Its strong financial condition.
Business Outlook:
Demand for energy, particularly natural gas with low emission of CO2, is expected to Increase in the medium to long-term; in line with economic growth in emerging countries. Energy development projects are becoming severer, with more vigorous product requirements to with stand depth, high pressure, and corrosive environments. Given this trend, customers are demanding higher performance and reliability of pipes. Jindal Saw has, consistently, made efforts to Improve the production facilities and processes to match with global standards. The Company has Invested in technology and high efficient processes in all the segments.
Given the global economic scenarios and uncertainties in the financial and economic conditions of major part of the world, the new demand of the tubular products especially from the developed world is expected to remain volatile. However, the demand of tubular products, in the medium to long term, is likely to remain supported as heavy Investments are being made by the operators in shale and other natural gas developments.
The demand for DI Pipes remains stronger in the domestic markets. However significant Increase in the competition in Indian market and the Increase in the Input prices has kept pressure on the revenues and profitability. The Company, besides focussing on the domestic market, is now targeting the global markets. These efforts are Likely to make the Company one of the largest global DI pipe players. The Company expect gradual Improvements in Its profitability in DI pipe segments. The commencement of operations in Iron ore vertical shall give additional boost to the DI pipe segment.
Investment business
undertaking
The Company is also engaged in Investment business by way of making Investments in shares and other securities as well as other financing activities of group companies and strategic Investments in new ventures.
These activities are carried out directly and/or through Its NBFC Subsidiary.
During the year, the
Company had initiated the process of demerger of Its Investment Undertaking. The Board of Directors approved
the de-merger of the
Investment Undertaking. Pursuant to this, a Scheme of Arrangement and
Demerger (Scheme) proposing to demerge
the Investment Undertaking of the Company Into wholly-owned subsidiary
Company, namely Hexa Tradex Limited
(HTL) was filed with the Hon'ble High Court of
Judicature at
As per the said Scheme, with effect from the Appointed Date I.e. 1st January, 201 I , the Investment Undertaking shall stand transferred to and vested In HTL on a going concern bases without any further act, deed or matter and In compliance with the provisions of section 2(1 9AA) of the Income-tax Act 1961, pursuant to the provisions contained In Sections 391 to 394 and other applicable provisions of the Companies Act 1956. Since Scheme Is pending before the High Court for confirmation, the effect of the Scheme has not been given In the financial results for the year ended 31st March, 2011.
Once the Scheme Is made effective, HTL will Issue and allot to the equity shareholders of the Company 1 equity share of face value of Rs. 2/- (credited as fully paid-up) for every 5 fully paid-up equity shares of Rs.2/- each held by them In the Company as on the record date. The shares so allotted will be listed on NSE and BSE.
Jindal ITF -
Nurturing the future
Through Its wholly owned subsidiary, Jindal ITF Limited, the Company has ventured Into businesses like water and waste water management, urban waste management, coastal and inland water transport and rail wagon manufacturing. Jindal ITF Is the driving Impetus behind development of sustainable Infrastructure that matches global standards. Having been Involved In laying a strong foundation for a secure and sustainable future, Jindal ITF adds economic and social value to the Indian as well as the global economy. Considering the extent of urbanization and expected growth In Indian economy, the management Is focusing on urban utility services. Therefore to meet the targets Jindal ITF Is working towards strengthening the team for market segments and territories. Jindal ITF bagged three major municipal solid waste processing projects In Punjab and has Invested In the largest waste to energy faculty In India at Okhla, New Delhi which Is expected to commission In 2011. Jindal ITF received Frost and Sullivan award for Waste to Energy Deal of the Year for Year 2010 In the Municipal Waste to Energy Segment In lieu of this project. Jindal ITF Is eyelng similar opportunities In other parts of the country as well. The revenues have started flowing for jindal ITF businesses and It Is poised for exponential growth.
In an effort to become foremost urban utility partner, Jindal ITF alms on taking significant Initiatives to Improve cost competitiveness, diversify Into new geographies and Introduce new business. Some of the key Initiatives taken up In this regard are:
Focus on Process Excellence Initiatives to strengthen Proposals, Engineering and project Execution and Contract management teams.
Acquiring Pre Qualifications for water management projects
by setting up a Joint Venture with
Kobelco Eco Solution,
Setting up an environment friendly state of the art manufacturing facility of railway wagons at Vadodara District In Gujarat
Entering Into a strategic agreement with NTPC for creating and operating the infrastructure for transportation of Coal through Inland waterways for Its power plants.
Setting up of Corporate Centre of Excellence and SAP Implementation for Jindal ITF businesses will be the key areas of focus to achieve competitive advantage.
CONTINGENT LIABILITIES
|
Particulars |
31.03.2011 (Rs. In
Millions) |
|
a) Guarantee issued by the Company’s bankers on behalf of
the Company |
9326.313 |
|
b) Letter of Credit Outstanding |
9036.715 |
|
c) Bills discounted by banks |
893.000 |
|
d) Claims against the company not acknowledged as debts |
85.600 |
|
e) Corporate guarantees/ undertaking issued to lenders of
subsidiary companies |
1287.851 |
|
f) Disputed Excise Duty, Custom Duty and Service Tax |
16.229 |
|
g) Income tax demands against which company has preferred
appeals |
122.466 |
|
h) Disputed Sales Tax |
59.593 |
|
i) Liability in respect of Corporate Guarantee/ Duty Saved
for availing various export based incentive schemes |
1024.926 |
A
Scheme of Arrangement and Demerger (Scheme) entailing de-merger of Investment
Undertaking into Hexa Tradex Limited (HTL) was filed by the Company with the Hon’ble
High Court of judicature at
As per the
said Scheme, with effect from the Appointed Date i.e. 1st January,
2011, the Investment Undertaking shall stand transferred to and vested in HTL
on a going concern basis pursuant to the provisions contained in Sections 391
to 394 and other applicable provisions of the Companies Act 1956. The Scheme is
pending before the Hon’ble High Court of Allahabad for confirmation and hence
the effect of the Scheme has not been given in the financial results for the
year ended 31st March, 2011.
As per
the Scheme, the following assets and liabilities of the Investment Division of
the Company as appearing on 1st January, 2011 i.e., the appointed
date would be transferred to HTL:
(Rs. in millions)
|
a) Liabilities |
|
|
Current
Liabilities |
0.082 |
|
Provisions |
0.143 |
|
Total |
0.225 |
|
b) Assets |
|
|
Investments |
255.891 |
|
Advances
recoverable |
0.137 |
|
Loan
to Subsidiary |
1927.291 |
|
Total |
2183.319 |
Once the
Scheme is made effective, as a consideration of transfer of Investment
Undertaking. HTL will issue and allot to the Equity Shareholders of subject 1
(one) equity share of face value of Rs.2/- (credited as fully paid-up) for
every 5 (five) fully paid-up equity shares of Rs.2/- each held by them in
subject as on the Record Date (to be fixed). The equity shares so allotted by
HTL shall be listed on NSE and BSE.
Had the
effect of the Scheme after approval of the Hon’ble High Court of Allahabad and
filing a certified copy with
Registrar
of Companies, Utter Pradesh, being taken, the Profit after tax would have been
Rs.4641.776 millions (instead of Rs.4640.661 millions), Reserves and Surplus
Rs.37476.937 millions (instead of Rs.39659.416 millions), Investments
Rs.6286.693 millions (instead of Rs.6543.084 millions), Current Assets and
Loans and Advances Rs.36344.363 millions (instead of Rs.38270.799 millions)
Current liabilities and provision Rs.9725.976 millions (instead of Rs.9726.325
millions).
UNAUDITED FINANCIAL
RESULTS FOR THE QUARTER ENDED 30TH JUNE, 2011
(Rs. In Millions)
|
Particulars |
Quarter
Ended 30.06.2011
Unaudited |
|
1. Gross sales/ Income from Operations |
11885.200 |
|
Less: Excise Duty |
(554.500) |
|
Net sales/Income from Operations |
11330.700 |
|
2. Other operating income |
25.700 |
|
3. Total Income
(1+2) |
11356.400 |
|
4. Expenditure |
|
|
a) (Increase)/decrease in stock in trade and work in progress |
(3995.300) |
|
b) Consumption of raw material |
11021.700 |
|
c) Purchase of traded goods |
76.400 |
|
d) Employee Cost |
560.000 |
|
e) Depreciation |
353.900 |
|
f) Other expenditure |
1912.000 |
|
g) Total |
9928.700 |
|
5. Profit/ (Loss) from operations before other income, interest and
other exceptional items (3-4) |
1427.700 |
|
6. Other income |
13.900 |
|
7. Profit / (Loss) before interest and exceptional items (5+6) |
1441.600 |
|
8. Interest and Financial Charges |
256.200 |
|
9. Profit after interest but before Exceptional Items (7-8) |
1185.400 |
|
10. Exceptional Items |
-- |
|
11. Profit / (Loss) from
Ordinary Activities before taxation (9-10)
|
1185.400 |
|
12. Tax Expenses (Note 3) |
357.400 |
|
13. Net Profit / Loss form Ordinary Activities After Tax (11-12) |
828.000 |
|
14. Extraordinary Item (Net of Taxes) |
-- |
|
15. Net Profit / Loss for the period (13-14) |
828.000 |
|
16. Preference Dividend and Corporation Tax thereon |
-- |
|
17. Net profit attributable to equity shares |
828.000 |
|
18. Paid up equity share capital (Face value of Rs.2 per share) |
552.500 |
|
19. Reserves excluding revaluation reserves as per balance sheet of
previous accounting year |
-- |
|
20. Earning Per Shares (EPS) On Face Value of Rs.2 |
|
|
a) Basic and diluted EPS before Extraordinary items for the period
year, for the year to date and to for the previous year (not annualized) |
|
|
Basic EPS (Rs.) |
3.00 |
|
Diluted EPS (Rs.) |
3.00 |
|
b) Basic and diluted EPS after Extraordinary items for the year to
date and to for the previous year (not annualized) |
|
|
Basic EPS (Rs.) |
3.00 |
|
Diluted EPS (Rs.) |
3.00 |
|
21. Public
shareholding |
|
|
- Number of shares |
149170036 |
|
- Percentage of shareholding |
54.00% |
|
22. Promoters and Promoter
Group Shareholding |
|
|
a)
Pledge/ Encumbered - Number of shares |
100000 |
|
- Percentage of shareholding of promoter and promoter group |
0.08% |
|
- Percentage of shareholding of the total share capital of the company
|
0.04% |
|
b)
Non Encumbered - Number of shares |
126957485 |
|
- Percentage of shareholding of promoter and promoter group |
99.92% |
|
- Percentage of shareholding of the total share capital of the company
|
45.96% |
Notes:
1 These
results were reviewed by the Audit Committee and approved by the Board of
Directors in their meeting held on 12th August, 2011.
2
During this quarter, the company has adopted principles of AS 30, Financial
Instruments:
Recognition
and Measurement with regard to forward, currency swap and option contracts.
Transitional effect of fair value of the outstanding contracts on the date of
adopting AS 30 is adjusted against opening balance of General Reserve/ Profit
and Loss Account. Subsequent change in fair value (loss/gain) after
transitional date shall be charged to profit and loss account. Till 31st
March 2011, such gain/loss was being provided for in profit and loss account,
on cash settlement.
3 Tax
Expense consists of Income Tax and Deferred Tax.
4 The
Confirmation Petition to sanction Scheme of Arrangement and Demerger (Scheme)
proposing to demerge Investment Undertaking of the Company w.e.f. 1st
January, 2011 (Appointed Date) to Hexa Tradex Limited is pending before Hon’ble
High Court of Judicature at Allahabad. Pending sanction of above Scheme, the
aforesaid results are inclusive of results of Investment Undertaking.
5 The
Company has only one business segment namely ‘Iron and Steel Products” as
primary segment.
6
Previous period figures have been re-grouped/re-arranged wherever necessary.
7 The
Company did not have any investors complaints as at 1st April, 2011
and 4 complaints were received during the quarter. There was no complaint
pending as at 30th June, 2011.
8 The
Statutory Auditors have carried out Limited Review of these financial results.
FIXED ASSETS
Tangible Assets
v
v
v Buildings
v Plant and Machinery
v Furniture and Fixtures
v
Vehicles
Intangible Assets
v
Computer Software
WEBSITE DETAILS
CORPORATE OVERVIEW
Subject is a part of the USD $ 15 billion O.P. Jindal Group, one of the
country's topmost industry houses and the foremost indigenous steel producers
and exporters. It started operation in the year 1984, when it became the first
company in
Subject is in a commanding position in
With integrated facilities at multiple locations and an ever expanding market
opportunity, subject has diversified from a single product company to a
multi-product company, manufacturing large diameter submerged arc pipes and
spiral pipes and bends for the energy transportation sector; carbon, alloy and
stainless steel seamless pipes and tubes manufactured by conical piercing
process used for industrial applications; and Ductile iron (DI) pipes for water
and sewage transportation. Besides these, the company also provides various
value added products like pipe coatings, bends and connector castings to its
clients.
At subject, the business operations are highly structured with three strategic
business units: Large Diameter Pipes, Seamless Tubes, and DI (Ductile Iron)
Pipes. Every SBU has its own dedicated sales and marketing targets and
operations.
In 2006, subject realigned itself by disposing off non-core business in the
The company has consistently created value by creating low-cost capacities in
capital-intensive industries in businesses largely overlooked by other
corporate. Subject has recently launched its Jindal ITF (Infrastructure,
Transportation, Fabrication) subsidiary.
BUSINESS
DESCRIPTION
Subject is a pipe manufacturing company in
THE MANAGEMENT
Mr. Prithvi Jindal
Vice-Chairman
Pioneering the production of SAW pipes three decades ago Mr. Prithvi Jindal
is at the helm of affairs as the Vice Chairman of subject a part of the fourth
largest industrial house in
A perfectionist to the core Mr. Jindal guided the company’s global ambitions.
His sharp business acumen complemented by a futuristic vision and a hands on
approach has made subject a force to reckon with not only on the home turf but
has left global footprints by entering into the highly competitive
Under Mr. Jindals able stewardship the company has grown multi-fold and has
diversified its product line, offering total pipe solutions to a wide array of
sectors - energy, water and sewage transportation and industrial application.
The credit of transforming the single product company into a dynamic multi-product
transnational organization goes to his single-minded dedication. Today subject
is the proud exporter of finished products range that provides total pipe
solutions.
A firm believer of delivering not just quality but value to its clients the
organization has adopted corporate practices that are guiding beckons to others
and make subject stakeholder and shareholder friendly organization.
Today Mr. Jindals untiring efforts have firmly placed
Ms. Sminu Jindal
Managing-Director
Sminu Jindal is the first lady entrant in the country to do her gender
proud by breaking the glass ceiling in the Steel, Oil and Gas sector in
An alumnus of Shri Ram College of Commerce Sminu Jindal went on to pursue MBA
from Fore School of Management, with specialization in Finance. Her outstanding
academic performance won her a Silver Medal and later on
Ms. Jindal is a completely hands on person and she joined the family business
at the fag end of her teens. To her credit she turned around a sick unit into a
profitable venture in the very first year of joining. She then trained her
sight on subject in 1997. Soon she was at the helm of affairs as the MD where
her acute business acumen positioned the company as a global player bagging
major international contracts, and rolled out business strategies, which
resulted in higher profitability.
A completely hands on person Ms. Jindal joined the family business as a trainee
at the fag end of her teens in Swastik Foils a unit of subject to her credit
she turned around the sick unit into a profitable venture in the very first
year of joining by pioneering the production of ultra thin gauge steel that was
unheard of in that era and time. She then trained her sight on subject in 1997.
Soon she was at the helm of affairs as the MD where her acute business acumen
positioned the company as a global player bagging major international
contracts, and rolled out business strategies, which resulted in higher profitability.
She initiated environment protection steps like affluent treatment plants and
environment friendly processes much before the government regulatory
authorities drive. Subject was one of the very first companies to be awarded
all environmental clearances. This is not all ISO 9002,14001,18001
certification awarded bespeak of her continued commitment to the welfare,
safety and security of her employees as well as the custodian of best business
practices.
Corporate Social Responsibility is engrained in Ms. Jindals’s corporate DNA.
Having overcome physical challenges this gritty corporate player has undertaken
the sole responsibility of taking up the cause of ensuring accessible and
barrier free public infrastructure for the greying as well as the physically
challenged population. Svayam - an initiative of Sminu Jindal Charitable Trust
that gives wings to people with reduced mobility provides expression to the
social responsibility that is whole heartedly supported by subject. Her
single-minded dedication to the cause has not only given it the right impetus
but also highlighted the tribulations of the mobility challenged at various
platforms - government, public or corporate.
Svayam is committed towards making India Accessible to all. To this effect it has
initiated a host of activities that is set to kick off a chain of events that
would make
Yet another dimension of this multifaceted corporate persona is her passion for
art. She dons the mantle of not a mere collector but a promoter who has set the
stage for a dialogue between master craftsmen and artists, which would result
in exclusive pieces of art. Her office space reflects this where artistic
expression of leading alongside budding artists in varying forms finds display.
Ms. Sminu Jindal is an exceptional and exemplary woman of substance who does
not shy away from challenges in all walks of life.
At the helm of affairs of subject as the Managing Director Mr. Indresh
Batra contributed phenomenally to make the operations profitable in record
time. He successfully positioned subject as a key player in the Global
Infrastructure Development of the Emerging World.
An Economics graduate from
Social Responsibility complements the corporate outlook of Mr. Batra. He is the
founder of Corporate Social Responsibility initiative that promotes
self-reliance amongst people from different strata of society.
Mr. Indresh Batra exhibits a rare combination of dedicated professionalism and
gentlemanly suave personality. Man of few words he understands the language of
sincere hard work and hard work alone, and yet excels in communication skills
at all levels. The cross-cultural skills honed during his assignments across
the continents with diverse ethnic and cultural backgrounds add yet another
dimension to his interpersonal capabilities.
JINDAL
ORGANIZATION
The O.P. Jindal Group is a US $15 billion
conglomerate. In a short span of three decades, the Group has emerged as one of
most dynamic business houses in
Founded in 1952 by Late Shri O. P. Jindal, a
first-generation entrepreneur, The Group today, a leading steel producer, with
interests spanning across the spectrum, from mining iron ore, to manufacturing
value-added steel products.
The core team of the group comprises the four sons
of the founder.
v Mr. Prithviraj Jindal is the Vice Chairman of subject
v Mr. Sajjan Jindal is the Vice Chairman and Managing Director of JSW Steel Limited
v Mr. Ratan Jindal is the Vice Chairman and Managing Director of Jindal Stainless Limited
v Mr. Naveen Jindal is the Executive Vice Chairman and Managing Director of Jindal Steel and Power Limited (JSPL)
The O.P. Jindal Group has charted out an aggressive growth plan over the next
decades.
All the Group companies are well poised to take advantage of the huge
opportunities presented by
MILESTONES:
|
1986 |
Country's first LSAW
Pipes (U-O-E) Mill for Line Pipes commissioned at Kosi Kalan with API and ISO
accreditation. |
|
1992 |
Bevelling Unit Commissioned
at Kosi Kalan. SAW Pipes, |
|
1993 |
First major supply of
NACE Pipes for Offshore line. |
|
1994 |
Seamless Pipes and
Tubes Division Commissioned at Nashik. 3LPE/FBE Coating Plant commissioned at
Kosi Kalan. |
|
1995 |
First Export order is
executed for Line Pipes. |
|
1996 |
CTE Mobile Coating
Plant commissioned at Kosi Kalan. |
|
1997 |
Hot Induction Bends
Unit established at Kosi Kalan. Start up of 4 meter wide Plate Mill at |
|
1999 |
Port-based 100%
Export Oriented LSAW and HSAW Line Pipe Plants commissioned at Mundra with
API and ISO accreditation. Internal Coating Plant commissioned at Kosi Kalan. |
|
2000 |
3 LPE/FBE Coating Plant
commissioned at Mundra. Internal Coating Plant commissioned at Mundra. |
|
2002 |
concrete Weight
Coating Plant re-commissioned at Mundra. Bevelling Unit commissioned at
Mundra. |
|
2003 |
Additional Plant for
3LPE/FBE commissioned at Mundra. |
|
2004 |
Third LSAW
manufacturing facility commissioned at Samaghogha near Port Mundra with
accreditation from API and ISO . |
|
2005 |
Start up of
Integrated Pipe Unit Ductile Iron Pipe manufacturing plant of 200,000 MT per
annum capacity along with Blast Furnace of 250,000 MT per annum capacity and
a Coke Oven Plant. |
PRESS RELEASES:
JINDAL SAW LIMITED Q4 PAT AT RS.801.900 MILLIONS
New Delhi, May 12, 2011: Jindal SAW Limited, a total pipe solution company
in the country, today announced the unaudited (standalone) financial results
for the fourth quarter ended March 31st, 2011.
Blended EBITDA of the quarter ended 31st March, 2011, is
approximately Rs. 8,212 PMT of total pipes sold whereas the EBITDA for full
year 2010 – 11 is at Rs.11,350 PMT of pipes sold. This quarter witnessed lower
production and higher sales.
As per the company release the profitability of the Company for the
March 2011 quarter remains under pressure due to (i) execution of low margin
orders including HSAW orders of GAIL (ii) Higher freight cost on few export
consignments (iii) Higher input and other costs for all the segments.
Even though the demand for pipe products is expected to improve gradually,
the increase in supply has outpaced the growth in demand. Further, the prices
for inputs is increasing on the back of higher cocking coal prices, higher
petroleum prices as well as increasing financing costs. Therefore in the coming
quarters too the company expects pressure on revenue and profitability. To
counter the impact of these issues, the company is working towards cost
control, improvement in operational efficiency, effective utilization of
resources and on the top of that giving high priority to the implementation of
the iron ore segment.
Order Book Position
As at April, 2011, the order book is above US$ One Billion, slated to be
executed by end of March 2012:
o Large Diameter Pipes – US$ 790 Millions
o Ductile Iron Pipes – US$ 185 Millions
o Seamless Pipes – US$ 25 Millions
The company has participated in various bids and is likely to get orders
in phases. The current order book includes export orders of app. 55%. The major
exports orders are from Middle East, Gulf region and South East Asia, China and
Highlights of Unaudited financial and operational performance (stand
alone) for the 4th Quarter ended March 31, 2011
May 12, 2011
|
Particulars |
12 months 2010-11 |
Q4 FY-11 |
Q5 FY10 |
Q3 FY 11 |
|
(Unaudited) |
(Unaudited) |
(Unaudited) |
(Unaudited) |
(Unaudited) |
|
Rs/ Millions |
Rs/ Millions |
Rs/ Millions |
Rs/ Millions |
Rs/ Millions |
|
Quarter ended as at |
Mar 31, 2011 |
Mar 31, 2011 |
Mar 31, 2010 |
Dec 31, 2010 |
|
Gross Turnover |
43,122.50 |
12,186.70 |
11,395.80 |
11,001.60 |
|
Less: Excise Duty |
1,576.10 |
633.20 |
533.10 |
367.50 |
|
Net Turnover |
41,546.40 |
11,553.50 |
10,862.70 |
10,634.10 |
|
Total Expenditure: |
|
|
|
|
|
(Increase)/Decrease in Stock in trade and WIP |
(665.30) |
541.10 |
(1,631.90) |
(221.70) |
|
Consumption of Raw Material and Purchase of traded goods |
25,385.80 |
6,628.60 |
8,065.50 |
6,552.30 |
|
Outsourcing |
351.40 |
68.00 |
|
88.10 |
|
Total Raw Material Cost |
25071.90 |
7,237.70 |
6,433.60 |
6,388.70 |
|
Staff Cost |
1,965.40 |
640.40 |
468.60 |
459.70 |
|
Other Expenditure |
6,274.00 |
1,996.10 |
1,080.40 |
1,592.80 |
|
EBITDA |
8,235.10 |
1,679.30 |
2,880.10 |
2,192.90 |
|
Other Income (Including other operating income) |
359.70 |
90.10 |
45.90 |
66.20 |
|
Financial Charges |
1,148.60 |
291.20 |
217.80 |
310.70 |
|
Depreciation |
1,365.80 |
353.90 |
339.10 |
334.90 |
|
PBT |
6,080.40 |
1,124.30 |
2369.10 |
1,613.50 |
|
Provision for Tax |
1,495.80 |
322.40 |
566.40 |
363.40 |
|
PAT |
4,584.60 |
801.90 |
1,802.70 |
1,250.10 |
|
Blended EBITDA- Rs/ MT |
11,350 |
8,212 |
12,997 |
12,308 |
|
RATIOS |
|
|
|
|
|
EBITDA to Net Sales |
19.82% |
14.53% |
26.51% |
20.62% |
|
RM to Net Sales |
60.35% |
62.65% |
59.23% |
60.08% |
|
Finance cost to Net Sales |
2.77% |
2.52% |
2.01% |
2.92% |
|
PBT to Net Sales |
14.64% |
9.73% |
21.81% |
15.17% |
|
PAT to Net Sales |
11.03% |
6.94% |
16.60% |
11.76% |
About Jindal SAW Limited: Jindal SAW Limited is a part of USD 12
billion O.P. Jindal Group, the fourth largest industrial house in
Jindal SAW Limited is the leading production hub of SAW Pipes primarily
used for transportation of oil and gas. With integrated facilities at multiple
locations Jindal SAW has diversified into a multi-product company,
manufacturing large diameter Submerged Arc Welded pipes and spiral pipes and
bends for energy transportation sector; Carbon, alloy and stainless steel
Seamless tubes manufactured by conical piercing process for industrial
application and Ductile Iron pipes for water and sewage transportation. Besides
this Company provides value added products and services like anti-corrosion
coatings for pipe and bends, induction bends and connector casings. ISO 9002,
14001, 18001 certification awarded bespeak of Company’s continued commitment to
the welfare, safety and security of employees as well as the custodian of best
business practices.
CHARTERED LOGISTICS ZOOMS
ON FORAYING INTO RAIL AND SEA LOGISTICS BUSINESS
28 September 2011
EURO-ZONE DEBT WOES AND
DISMAL IIP DATA RATTLES MARKET AGAIN
12 September 2011
India, Sept. 12 -- The fifty stock index -- Nifty -- continued its
southward journey for second consecutive day on Monday and finished the choppy
day of trade with triple digit cut after witnessing bloodbath for the day on
the back of Euro-zone debt worries while, dismal July IIP data on domestic
front too dampened the sentiments. Earlier, the Indian equity market made a gap
down start and got butchered in the early trade as investors remained concern
over debt worries in Euro-zone and breached its crucial 5,000 mark. Moreover,
the resignation of a top German central bank board member casted further doubt
on
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] 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.48.93 |
|
|
1 |
Rs.76.52 |
|
Euro |
1 |
Rs.66.65 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT LINES |
1~10 |
6 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
64 |
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.