1. Summary Information
|
|
|
Country |
|
|
Company Name |
JSL STAINLESS LIMITED |
Principal Name 1 |
Mrs. Savitri Devi Jindal |
|
Status |
Good |
Principal Name 2 |
Mr. Ratan Jindal |
|
|
|
Registration # |
-- |
|
Street Address |
O. P. Jindal Marg, Hisar – 125 005,
Haryana, India |
||
|
Established Date |
29.09.1980 |
SIC Code |
-- |
|
Telephone# |
91-1662-222471- 485 |
Business Style 1 |
Manufacturer
of Stainless Steel. |
|
Fax # |
91-1662-220476 / 220499 |
Business Style 2 |
-- |
|
Homepage |
-- |
Product Name 1 |
-- |
|
# of employees |
54184 (approximately) |
Product Name 2 |
-- |
|
Paid up capital |
Rs.374,632,000 |
Product Name 3 |
-- |
|
Shareholders |
|
Banking |
Canara Bank |
|
Public Limited Corp. |
-- |
Business Period |
31 years |
|
IPO |
--- |
International Ins. |
- |
|
Public |
--- |
Rating |
A (67) |
|
Related
Company |
|||
|
Relation
Subsidiaries |
Country
India |
Company
Name |
JSL Lifestyle Limited |
|
Note |
- |
||
2. Summary
Financial Statement
|
Balance Sheet as of |
31.03.2011 |
(Unit: Indian Rs.) |
|
|
Assets |
Liabilities |
||
|
Current Assets |
25,663,862,000 |
Current Liabilities |
28,987,714,000 |
|
Inventories |
21,087,218,000 |
Long-term Liabilities |
85,015,288,000
|
|
Fixed Assets |
41,624,107,000 |
Other Liabilities |
4,444,667,000 |
|
Deferred Assets |
88,375,187,000 |
Total Liabilities |
118,447,669,000 |
|
Invest& other Assets |
52,620,618,000 |
Retained Earnings |
22,151,309,000 |
|
|
|
Net Worth |
22,548,136,000 |
|
Total Assets |
140,995,805,000 |
Total Liab. & Equity |
140,995,805,000 |
|
Total Assets (Previous Year) |
123,654,640,000 |
|
|
|
P/L Statement as of |
31.03.2011 |
(Unit: Indian Rs.) |
|
|
Sales |
68,178,010,000 |
Net Profit |
3,183,369,000 |
|
Sales(Previous yr) |
57,565,487,000 |
Net Profit(Prev.yr) |
3,784,822,000 |
MIRA
INFORM REPORT
|
Report Date : |
25.10.2011 |
IDENTIFICATION DETAILS
|
Name : |
JSL STAINLESS LIMITED (w.e.f 06.08.2010) |
|
|
|
|
Formerly Known
As : |
JSL LIMITED |
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|
|
|
Registered
Office : |
O. P. Jindal Marg,
Hisar – 125 005, Haryana |
|
|
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|
Country : |
|
|
|
|
|
Financials (as
on) : |
31.03.2011 |
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|
|
|
Date of
Incorporation : |
29.09.1980 |
|
|
|
|
Com. Reg. No.: |
55-10901 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs.374.632 millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L26922HR1980PLC010901 |
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|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
RTKJ01831E RTKJ01408B |
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PAN No.: [Permanent Account No.] |
AABCJ1969M |
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Legal Form : |
Public Limited
Liability Company. The company’s shares are listed on the Stock Exchanges |
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|
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Line of Business
: |
Manufacturer
of Stainless Steel. |
|
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|
|
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 10200000 |
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|
|
|
Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a 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) |
|
|
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
LOCATIONS
|
Registered
Office : |
O. P. Jindal Marg,
Hisar – 125 005, |
|
Tel. No.: |
91-1662-222471- 485 (15 Lines) |
|
Fax No.: |
91-1662-220476 /
220499 |
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E-Mail : |
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Website : |
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Corporate
Office : |
Jindal Centre,
12, |
|
Tel. No.: |
91-11-26188340-50 |
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Fax No.: |
91-11-26161271 / 26170691 / 41659169 |
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E-Mail : |
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Factory 1 : |
P. O. Box No. 6,
O.P, Jindal Marg, Hisar – 125 005, |
|
Tel. No.: |
91-1662-220471-485
(15 Lines) |
|
Fax No.: |
91-1662-220476 /
220499 |
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Factory 2 : |
58-17-1/1, Sangeevaya Nagar, Near |
|
Tel. No.: |
91-891-2558898 |
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Fax No.: |
91-891-2558996 |
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Factory 3 : |
Kalinga Nagar
Industrial Complex, P. O. Danagadi – 755026, District Jajpur, Odisha, India |
|
Tel. No.: |
91-672-6266001 |
|
Fax No.: |
91-672-6266002 |
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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 |
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Factory 5 : |
Jindal Nagar,
Kothavalasa - 535183, District Vizianagaram, |
|
Tel. No.: |
91-8966-273327/273254/273335 |
|
Fax No.: |
91-8966-273326 |
|
E-mail : |
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Branches : |
·
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 31.03.2011
|
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 State Bank of India |
|
|
|
|
Name : |
Mr. Naveen Jindal |
|
Designation : |
Director |
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|
|
|
Name : |
Mr. Arvind Parakh |
|
Designation : |
Director – Finance |
|
|
|
|
Name : |
Ms. Suman Jyoti Khaitan |
|
Designation : |
Director |
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|
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|
Name : |
Mr. T. S. Bhattacharya |
|
Designation : |
Director (Sales and Marketing) |
|
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|
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 |
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|
|
|
Name : |
Mr. Sandeep Sikka |
|
Designation : |
Head (Corporate Finance) |
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|
|
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 |
|
|
|
|
|
|
|
|
747815 |
0.44 |
|
|
43141700 |
25.31 |
|
|
43889515 |
25.75 |
|
|
|
|
|
|
7426805 |
4.36 |
|
|
23149710 |
13.58 |
|
|
30576515 |
17.94 |
|
Total shareholding of Promoter and Promoter Group (A) |
74466030 |
43.69 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
15355820 |
9.01 |
|
|
288741 |
0.17 |
|
|
2426624 |
1.42 |
|
|
40693558 |
23.88 |
|
|
9997524 |
5.87 |
|
|
9997524 |
5.87 |
|
|
68762267 |
40.34 |
|
|
|
|
|
|
7929564 |
4.65 |
|
|
|
|
|
|
18438418 |
10.82 |
|
|
845124 |
0.50 |
|
|
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 |
- |
- |
|
|
16734984 |
- |
|
|
869350 |
- |
|
|
17604334 |
- |
|
Total (A)+(B)+(C) |
188045737 |
- |
(1) Indian
Individuals / Hindu Undivided Family
Foreign BankBUSINESS DETAILS
|
Line of Business : |
Manufacturer
of Stainless Steel |
||||||
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|
||||||
|
Products : |
·
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
31.03.2011)
|
Particulars |
Unit |
Installed Capacity |
Production |
|
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 ODISHA / MINES High Carbon Ferro Chrome Power Plant |
MT MT MT MT MT MT MT M. Cum. M. Cum. Nos. MT MT MT MT |
780000 720000 250000 6000 275000 25000 10000 55.00 1.50 209 40000 250000 96000 264 430000 |
130795 534152 1363 1367 198951 22286 1292 53018572 1494400 32836
178871 |
GENERAL INFORMATION
|
No. of Employees : |
54184
(approximately) |
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Bankers : |
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Facilities : |
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 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.
Buyers Credit amounting to Rs. 13845.761 millions (Rs.10695.039 millions) are 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 charge 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. Buyers Credit amounting to Rs. 8202.872 millions (Rs.2756.959
millions) 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, bill receivable and by way of second charge in respect of
other movable and immovable properties of the Company F. 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.
Note: @ 1
Foreign Currency Convertible Bonds (FCCB) originally issued to the Foreign
investors on 24th December, 2004 with 0.50% coupon rate, amounting to USD 60 million,
out of which USD 24.05 million were outstanding as on 31st March 2010. In
terms of the Agreement executed with Trustee for Bondholders on 6th December
2010 for restructuring of FCCB, the Company has paid accrued YTM amounting to
USD 7.20 million, outstanding as on 31st March, 2010, from 23rd December 2004
to 24th December 2009 to all outstanding USD 24.05 million FCCB holders. 2
Pursuant to the terms of FCCB restructuring, the FCCBs amounting to USD 9.0
million were redeemed by the Company and balance remaining USD 15.05 million
FCCBs were restructured with zero coupon. Unless previously redeemed,
repurchased and
cancelled, or converted, the Bonds are redeemable at 176.28% of their
principal amount on 24th December 2019. These Bonds at the option of the
holder, may be converted into Equity Shares of face value of Rs. 2/- each, at
a pre-determined price of Rs.119.872 per share. These FCCBs would now be
termed as “Convertible Bonds due December 24, 2019”. Further, post FCCB
restructuring, the Company has received conversion notice for 950 FCCBs
amounting to USD 4.75 million and subsequently the company has allotted
17,33,620 fully paid equity shares on 7th January, 2011. Thus, the
outstanding FCCBs as on 31st March, 2011 were USD 10.30 million. |
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Banking
Relations : |
-- |
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|
|
|
Auditors : |
|
|
Name : |
·
S. S.
Kothari Mehta and Company Chartered Accountants ·
Lodha
and Company Chartered Accountants |
|
|
|
|
Cost Auditors : |
Ramanath Iyer and
Company Cost Accountants |
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Associates : |
·
J.S.S. Steelitalia
Limited |
|
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Subsidiaries : |
|
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|
Joint Venture
: |
·
MJSJ Coal Limited |
CAPITAL STRUCTURE
As on 31.03.2011
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 |
|
|
|
|
|
|
187315792 |
Equity Shares |
Rs.2/- each |
Rs.374.632
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) 16,734,984
and 869,350 (represented by 8,367,492 nos. and 434,675 nos. GDS) Equity shares
of Rs. 2/- each fully paid up have been allotted to the holders of 1540 and 80
Foreign Currency Convertible Bonds of US $ 5000/- each at predetermined (as per
scheme) conversion rate of Rs. 20/- each during the years ended on 31.03.2006
and 31.03.2007 respectively.
H) 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.
I)
6,800,000 and 7,150,000 and 7,550,000 Equity shares of Rs. 2/- each fully paid
up have been allotted to the holders of equity share warrants at predetermined conversion
rate of Rs. 103/- each during the years ended on 31.03.2007 and 31.03.2008 and
31.03.2009 respectively.
J)
23,447,240 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.
K)
1,733,620 Equity Shares of Rs.2/- each fully paid up allotted to the holders of
950 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
31.03.2011.
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES
OF FUNDS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
SHAREHOLDERS
FUNDS |
|
|
|
|
|
1] Share Capital |
374.632 |
371.164 |
324.270 |
|
|
2] Equity Share
Warrants |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves &
Surplus |
22151.309 |
18764.754 |
12579.054 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
5] Employees Stock Option Outstanding |
22.195 |
0.000 |
|
|
NETWORTH
|
22548.136 |
19135.918 |
12903.324 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
83622.452 |
72860.274 |
51795.735 |
|
|
2] Unsecured
Loans |
1392.836 |
2588.934 |
4775.706 |
|
TOTAL BORROWING
|
85015.288 |
75449.208 |
56571.441 |
|
|
DEFERRED TAX
LIABILITIES |
4444.667 |
3909.777 |
1991.433 |
|
|
|
|
|
|
|
TOTAL
|
112008.091 |
98494.903 |
71466.198 |
|
|
|
|
|
|
|
APPLICATION OF FUNDS
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block]
|
41624.107 |
39031.855 |
39554.969 |
|
Capital work-in-progress
|
50705.072 |
38849.824 |
20109.504 |
|
|
|
|
|
|
|
INVESTMENT
|
1672.464 |
3514.469 |
8968.579 |
|
DEFERREX TAX ASSETS
|
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES
|
|
|
|
|
|
|
Inventories
|
21087.218 |
16328.649 |
16617.554 |
|
|
Sundry Debtors
|
12570.825 |
10597.367 |
5620.924 |
|
|
Cash & Bank Balances
|
3293.792 |
6875.024 |
6572.192 |
|
|
Other Current Assets
|
0.000 |
0.000 |
0.000 |
|
|
Loans & Advances
|
9799.245 |
8179.561 |
7466.728 |
Total Current Assets
|
46751.080 |
41980.601 |
36277.398 |
|
Less : CURRENT LIABILITIES & PROVISIONS
|
|
|
|
|
|
|
Sundry Creditors
|
8322.048 |
7374.084 |
5517.593 |
|
|
Current Liabilities
|
16811.723 |
14795.429 |
25677.647 |
|
|
Provisions
|
3853.943 |
2990.224 |
2532.234 |
Total Current Liabilities
|
28987.714
|
25159.737
|
33727.474
|
|
Net Current Assets
|
17763.366 |
16820.864 |
2549.924 |
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES
|
243.082 |
277.891 |
283.222 |
|
|
|
|
|
|
|
TOTAL
|
112008.091 |
98494.903 |
71466.198 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
68178.010 |
57565.487 |
48533.071 |
|
|
|
Other Income |
227.031 |
168.486 |
197.995 |
|
|
|
TOTAL (A) |
68405.041 |
57733.973 |
48731.066 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Materials, Manufacturing and Others |
53911.966 |
43784.710 |
42283.636 |
|
|
|
Personnel |
1520.535 |
1214.435 |
1099.741 |
|
|
|
Administrative and Selling Expenses |
2114.512 |
1935.265 |
1755.879 |
|
|
|
Miscellaneous Expenses |
34.809 |
31.768 |
3.851 |
|
|
|
Exceptional Items |
(542.249) |
(2328.723) |
5949.434 |
|
|
|
Other Expenditure |
0.000 |
0.000 |
0.000 |
|
|
|
TOTAL (B) |
57039.573 |
44637.455 |
51092.541 |
|
|
|
|
|
|
|
|
Less |
PROFIT
/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
11365.468 |
13096.518 |
(2361.475) |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
3330.473 |
3993.883 |
3175.863 |
|
|
|
|
|
|
|
|
|
|
PROFIT
/ (LOSS ) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
8034.995 |
9102.635 |
(5537.338) |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
3561.429 |
3398.871 |
3130.786 |
|
|
|
|
|
|
|
|
|
|
PROFIT / (LOSS)
BEFORE TAX (E-F) (G) |
4473.566 |
5703.764 |
(8668.124) |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
1290.197 |
1918.942 |
(2869.920) |
|
|
|
|
|
|
|
|
|
|
PROFIT / (LOSS)
AFTER TAX (G-H) (I) |
3183.369 |
3784.822 |
(5798.204) |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
-- |
-- |
625.061 |
|
|
|
|
|
|
|
|
|
|
Denture
Redemption Reserve Written Back |
235.940 |
360.000 |
--- |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Debenture Redemption Reserve |
-- |
398.289 |
NA |
|
|
BALANCE CARRIED
TO THE B/S |
7165.842 |
3746.533 |
(5173.143) |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export Earnings |
14264.808 |
11108.780 |
12113.956 |
|
|
|
Interest |
2.666 |
132.632 |
194.969 |
|
|
|
Other Earnings |
0.000 |
0.000 |
3.232 |
|
|
TOTAL EARNINGS |
14267.474 |
11241.412 |
12312.157 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
20527.825 |
14936.661 |
16141.331 |
|
|
|
Stores & Spares |
1522.305 |
779.869 |
574.506 |
|
|
|
Capital Goods |
1015.738 |
12712.222 |
2032.457 |
|
|
|
Others |
10682.587 |
117.026 |
0.000 |
|
|
TOTAL IMPORTS |
33748.455 |
28545.778 |
18748.294 |
|
|
|
|
|
|
|
|
|
|
Earnings /
(loss) Per Share (Rs.) |
16.71 |
23.33 |
(35.87) |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2011 (1st
Quarter) |
|
Net Sales |
19768.800 |
|
Total Expenditure |
16754.400 |
|
PBIDT (Excl OI) |
3014.400 |
|
Other Income |
2.600 |
|
Operating Profit |
3017.000 |
|
Interest |
1025.700 |
|
Exceptional Items |
171.300 |
|
PBDT |
2162.600 |
|
Depreciation |
891.100 |
|
Profit Before Tax |
1271.500 |
|
Tax |
413.600 |
|
Provisions and contingencies |
0.000 |
|
Profit After Tax |
857.900 |
|
Extraordinary Items |
0.000 |
|
Prior Period Expenses |
0.000 |
|
Other Adjustments |
0.000 |
|
Net Profit |
857.900 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
PAT / Total Income |
(%) |
6.53 |
6.55
|
(11.90)
|
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
4.66 |
9.90
|
(17.86)
|
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
5.06 |
7.04
|
(11.43)
|
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.19 |
0.29
|
(0.67)
|
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
5.05 |
5.46
|
7.00
|
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.61 |
1.66
|
1.08
|
LOCAL AGENCY FURTHER INFORMATION
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
FINANCIAL RESULT
During the year, the consolidated Total
Sales of the Company has gone up by around 23% at Rs.80160.000 millions as
compared to Rs. 64930.000 millions during previous financial year 2009-10.
Consolidated Earnings before interest, depreciation, tax and exceptional item
stood at Rs.11750.000 millions as compared to Rs. 11220.000 millions during
previous year. Consolidated Net Profit after tax and exceptional item is Rs.
3190.000 millions in comparison to Rs.3920.000 millions during previous year
CHANGE
OF NAME
During the year, name of the Company has
been changed from JSL Limited to JSL Stainless Limited. Consequent upon change
of name, the Registrar of Companies, has issued fresh Certificate of
Incorporation on 6th August, 2010.
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 Odisha, and Vizag in the
state of Andhra Pradesh. The facilities include captive chromite mines,
ferro-alloy facilities, captive thermal power plants, coke oven and stainless
steel melting, hot rolling, cold rolling and downstream value-added facilities.
With the melting capacity of around 1.6 million tons, your company has further
strengthened its leadership position in the Asian stainless steel markets.
CHANGE
OF NAME
During
the year, name of the Company has been changed from JSL Limited to JSL
Stainless Limited. Consequent upon change of name, the Registrar of Companies,
has issued fresh Certificate of Incorporation on 6th August, 2010.
(A)
HISAR DIVISION
During
the year ended March 31, 2011, the stainless steel production has gone up to 701,814
tons as compared to previous year production of 677,841 tons. Further, the
sales volumes has also grown up to 640,404 tons as compared to previous year
sales volume of 606,854 tons. During the year, Hisar unit installed one more
Submerged Arc Furnace to recover the materials from the various processes,
bye-products and wastes like pollution dust, mill scales and pickling sludge.
In view of growing special steel and precision strips requirement your company
has initiated a project to increase its 0.10 mm blade steel capacity to 12,000
tons per annum which will be completed by the end of current financial year.
(B)
ODISHA DIVISION
INTEGRATED
STAINLESS STEEL PROJECT AT ODISHA
The company has successfully installed steel
making facility, with capacity of 8,00,000 tons per annum at Jajpur, Odisha and
has also started rolling of stainless steel products from this facility. 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-principle 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. The ramp-up and stabilization of finishing facilities
under the project is expected during financial year 2011-12.
The
company is on the point of inflexion with substantial growth in capacities
resulting from development of phase II of the Odisha project. Phase II growth
of the Odisha project has been satisfactory which will now give a big boost to
JSL Stainless total capacity.
FERRO
ALLOYS, CAPTIVE THERMAL POWER PLANT DIVISION AND CHROMITE MINES
The
Ferro Alloys production during the year was 91,372 tons. A significant feature
of this production was the successful production of Ferro Chrome from the 27.6
MVA furnaces in a more cost competitive manner, making use of higher percentage
of low cost carburisers instead of imported LAM Coke.
The
Production of Power at 250 MW thermal power plant was 1,312 (Net) million units
despite a reduced purchase of power by the State Electricity Grid during the
later half of the year. However, your company successfully commissioned a 14 MW
Boiler of Thermax design and supply, and the facility is now fully operational,
with this the total power plant capacity has reached 264 MW. The Chromite Mines
division produced 25,855 tons of Chrome Ore Concentrate which is much higher
than the previous year production and also achieved 11,033 tons of Chrome Ore
production for the year.
COKE
OVEN DIVISION
During
the financial year 2010-11 your company has leased out the coke oven facility
and has entered into long term job work arrangement for conversion of coal into
coke. The coke oven batteries have now successfully started production of
metallurgical coke with gradual ramp-up. For the year ended 31st March, 2011,
the total production out of the coke oven facility stands at 49,299 tons of
Coke.
(C)
VIZAG DIVISION
The
Vizag Plant produces High Carbon Ferro Chrome with annual capacity of 40,000
tons per annum. Vizag Unit uses Chrome Ore supplied from captive Sukhinda
Chromite Mines and transfers the output to the Hisar Plant. The division has
achieved 82.09% of the Installed capacity by producing 32,836 tons of High
Carbon Ferro Chrome during the year 2010-11 as compared to 32,681 tons during
the preceding year.
MANAGEMENT
DISCUSSION AND ANALYSIS
GLOBAL
ECONOMIC OUTLOOK
The world economy is poised to grow at about
4.5% annually over 2011 and 2012. According to International Monetary Fund
(IMF), the emerging and developing economies have shown a positive pattern of
6.5% growth whereas the advanced economies are growing at 2.5%. In most
advanced economies, the recovery remains unbalanced with their output still
running below potential. The problems of the European Union periphery, stemming
from the combined interactions of low growth, fiscal woes, and financial
pressures, are particularly acute. The challenge for most emerging market
economies is thus quite different from that of the advanced economies-how to
avoid overheating in the face of closing output gaps and higher capital flows.
For a sustained recovery, advanced economies must achieve industrial
consolidation. To accomplish this and to maintain their growth, they need to
rely more on external demand. Correspondingly, emerging market economies too
must rely less on external demand and more on domestic demand.
Economic growth in the developing countries
remains the main driver of the global recovery which has been initiated by the
large emerging economies in Asia and Latin America, particularly China, India
and Brazil. Strong GDP growth in some of these developing countries now
contributes to more than half of the expansion of the world economy. A key
factor contributing towards high growth in these developing economies is their
continuing growth in the internal demand.
INDIAN
ECONOMY
Strongly emerging as a strong manufacturing
and export oriented industrial framework, India's economic growth remains
amongst the highest in the world alongside China, Russia and Brazil. Reserve
Bank of India Annual Monetary Policy 2011-2012 has estimated Indian's economic
growth at 8.5% during 2010-11 and projected real GDP growth at around 8.2% for
2011-12. However, the primary macroeconomic concern for the India continues to
be inflation. The high inflation in the Indian economy is mainly contributed by
food, non-food primary articles and fuel. As per the baseline projections provided
for in RBI Annual Monetary Policy 2010-11, from the high level of inflation of
11.04% in March 2010, the WPI Index has moderated to 8.98% in March 2011, which
is further likely to be moderated to 6% for March 2012. The interest rates over
last one year have also firmed up substantially due to tightening of money flow
by Reserve Bank of India.
As per estimates, India's per capita GDP on
Purchasing Power Parity (PPP) basis is USD 3,300 in 2010 and is expected to
reach USD 5,398 by 2016 depicting a marked improvement in standard of living.
During last 10 years, India economy has nearly tripled from USD 480 billion to
USD 1.5 trillion which is further estimated to rise to USD 4 trillion by 2020,
elevating India to fourth place behind the US, China and Japan by size of
economy.
This growth in Indian economy demands
massive infrastructure investment largely in electricity, railways, roads,
ports, airport, irrigation and urban and rural development. As per the Planning
Commission's Eleventh Five Year Plan, the total investment in infrastructure
should rise to 9 percent of the GDP by the end of plan period i.e. 2012. The
total investment in infrastructure during the Eleventh Plan is projected at USD
514.04 billion.
Some other estimates suggest that this
spending in infrastructure would escalate to USD 1.7 trillion by 2020. This
large scale spending in infrastructure is mainly driven by urbanization whereby
India is expected to witness substantial increase in its city population. As
per UN estimates, around 500 million people would move towards urbanization
over next four decades.
GLOBAL
STAINLESS STEEL INDUSTRY
After 3 years of declining trend driven by
stock cycles and global economic crises, stainless steel is back to emerge as
the fastest growing metal globally. According to International Stainless Steel
Forum (ISSF), the global stainless steel melting production has increased by
24.9% to 30.7 million tons in 2010. This significant improvement comes on
account of global economic recovery and strong end-use demand.
As the leader in the stainless steel
production Asia covers 65% of the world's stainless steel production and China
and India will continue to be the catalysts of stainless steel demand growth
for next decade. As per ISSF, stainless steel melting in Asia (without China)
increased by 20.8% to 8.6 million tons. Japan increased its stainless
production by 31.5% with Korea (+22.1%) and India (+17.6%) achieving clear two
digit growth rates. As the main driving force towards the improved performance,
China increased its Stainless steel and crude steel production by 27.8% to
almost 11.3 million tons. Over the last few years the stainless steel market
has witnessed major changes in its grade categories with the rising importance
of Chrome-Manganese steels and more recently of chromium grades. As per ISSF
estimates the market shares of the three stainless steel product grade
categories in 2010 are as follows:
INDIAN
STAINLESS STEEL INDUSTRY
Indian markets are showing fast growing
stainless steel demand and enormous future growth potential as the industry
succeeded to sustain its positive growth momentum on the strong fundamentals of
domestic demand from construction, automobile and infrastructure sectors.
As per ISSF, the per capita consumption of
stainless steel in India is 1.2 kg as compared to the world average of 4 kg and
China's 5 kg. This low per capita consumption of stainless steel in India
presents immense opportunities for growth in domestic stainless steel market.
The stainless steel consumption in India is estimated to be around 2.0 million
tons in 2010 which is expected to grow to around 5.0 million tons by 2020 at
annual growth rate of around 9.5% as compared to expected world average growth
of 6% over the next decade. Globally, the stainless steel usage is widely
spread into infrastructure sector such as construction and transport and these
account for 10 to 15 percent of total consumption. In India, stainless steel is
mainly used in kitchenware sector which accounts for almost 70% of the stainless
steel consumption.
The demand for the infrastructure spending
is growing in India and estimated to touch around USD 1.7 trillion over the
next decade. The large part of this infrastructure spending is expected to be
in the areas of up-gradation of railways, railway stations, roads, airports and
other transportation systems as well as various other construction activities.
With the Government's focus on modernization of railways and airport systems,
the demand for the stainless steel from these sectors is expected to grow
considerably. Areas such as transport, tubing, construction which currently
accounts for around 5% each of the total demand, are expected to consume around
15% each of the overall stainless steel consumption in India.
The Indian stainless steel market faces
challenges of dumped imports of both Hot Rolled and Cold Rolled Flat Products
from several countries including China, European Union, Taiwan and Korea. While
the Government of India has already imposed anti-dumping duties on certain grades
of CR products, the domestic industry has also sought protection against
imports of Hot Rolled Flat Products of 300 Series.
JSL
STAINLESS THE FACE OF INDIAN STAINLESS STEEL INDUSTRY
From a melting capacity of 87,000 tons at Hisar
(Haryana) in the year 1978 to 780,000 tons, JSL Stainless has consolidated its
leadership position, achieving total integration in stainless steel
manufacturing. JSL Stainless's manufacturing facilities in India are located in
Hisar in the state of Haryana, Jajpur in the state of Odisha and Vizag in the
state of Andhra Pradesh and includes stainless steel melting, hot rolling, cold
rolling facilities along with an ability to produce precision blade specialty
steel, ferro alloys facilities, captive thermal power plant and chromite mines.
The Company also has overseas manufacturing operations of stainless steel cold
rolling in Indonesia and stainless steel service center in Spain
CONTINGENT
LIABILITIES NOT PROVIDED FOR IN RESPECT OF:
(Rs.
In Millions)
|
Particulars
|
31.03.2011 |
31.03.2010 |
|
Counter Guarantee given to Company’s
Bankers for the guarantee given by them on behalf of Company. |
429.315 |
575.463 |
|
Letter of Credit outstanding |
8113.232 |
6042.956 |
|
Bills discounted by banks |
2629.073 |
712.536 |
|
Sales tax Demands against which Company
has preferred appeals. |
28.068 |
28.068 |
|
Income tax Demands against which Company
has preferred appeals. |
662.138 |
338.673 |
|
Excise Duty/Service Tax Show Cause Notices/Demands
against which company has preferred appeals. |
954.441 |
578.265 |
|
Claim against the company not acknowledged
as debt |
954.730 |
926.971 |
|
Guarantee given to custom authorities for import
under EPCG Scheme. {Custom duty saved/to be saved |
8093.471 |
1700.603 |
|
Demand made by Sr. Dy. Director of Mines,
Notified Authority, Jajpur Road Circle, Odisha as cess on Chromite Ore
production. The matter being pending with Hon’ble Supreme Court. |
32.049 |
32.049 |
FIXED
ASSETS
·
Land
·
Building
·
Plant and Machinery
·
Electric Installation
·
Vehicles
·
Furniture, fixtures and
equipments
·
Power line and bay
extension
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No records exist designating subject or any of its beneficial owners, controlling
shareholders or senior officers as terrorist or terrorist organization or whom
notice had been received that all financial transactions involving their assets
have been blocked or convicted, found guilty or against whom a judgement or
order had been entered in a proceedings for violating money-laundering,
anti-corruption or bribery or international economic or anti-terrorism sanction
laws or whose assets were seized, blocked, frozen or ordered forfeited for
violation of money laundering or international anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper payments
to government officials for engaging in prohibited transactions or with
designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l Anti-Money
Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals have
been formally charged or convicted by a competent governmental authority for
any financial crime or under any formal investigation by a competent government
authority for any violation of anti-corruption laws or international anti-money
laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs. 49.87 |
|
|
1 |
Rs. 79.72 |
|
Euro |
1 |
Rs. 69.52 |
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 |
- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.