MIRA INFORM REPORT

 

 

Report Date :

03.04.2012

 

IDENTIFICATION DETAILS

 

Name :                                

JINDAL STEEL AND POWER LIMITED

 

 

Registered Office :

O. P. Jindal Marg, Hisar – 125005, Haryana

 

 

Country :

India

 

 

Financials (as on) :

31.03.2011

 

 

Date of Incorporation :

28.09.1979

 

 

Com. Reg. No.:

05-009913

 

 

Capital Investment / Paid-up Capital :

Rs. 934.300 Millions

 

 

CIN No.:

[Company Identification No.]

L27105HR1979PLC009913

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

JBPJ00181G

DELJ03437A

 

 

Legal Form :

A Public Limited Liability company. The company’s Share are Listed on the Stock Exchange.

 

 

Line of Business :

Manufacturers of Sponge Iron and Mild Steel Slabs, Mining of Ferro Chrome and Generation of Electricity.

 

 

No. of Employees :

15000 (Approximately)

RATING & COMMENTS

 

MIRA’s Rating :

A (66)

 

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 340000

 

 

Status :

Good

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

Comments :

Subject is a part of Jindal Group. It is a well established and a reputed company having fine track. 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 normal for business dealing at usual trade terms and conditions.

 

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

 

ECGC Country Risk Classification List – September 30, 2011

 

Country Name

Previous Rating

(30.06.2011)

Current Rating

(30.09.2011)

India

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

 

 

 

 

 

 

 

 

 

 

 

LOCATIONS

 

Registered Office :

O. P. Jindal Marg, Hisar – 125005, Haryana, India

Tel. No.:

91-1662-222471-75/ 83/ 84

Fax No.:

91-1662-222476

E-Mail :

jslhsr@nde.vsnl.net.in

tksadhu@ngr.jindalsteel.com

Website :

http://www.jindalsteelpower.com

Area :

Owned  

Location :

Industrial Area

 

 

Corporate Office :

Jindal Centre 12, Bhikaiji Cama Place, New Delhi - 110 066, India

Tel. No.:

91-11-26188340-50

Fax No.:

91-11-26161271/26170691

E-Mail :

jindlorg@del2.vsnl.net.in

 

 

Factory :

·         Karsia Road, Post Box No. 16, Raigarh-496001, Chhattisgarh, India

Tel. No.:91-7762-304300/227001-05

Fax No.:91-7762-227022-23/227050

 

·         13 KM Stone, G. E. Road, Mandir Hasaud, Raipur-492001, Chhattisgarh, India

Tel. No.: 91-771-2471205/07/3054600

Fax No.: 91-771-2471404/2471214/3054666

 

·         Jindal Nagar, Village Nisha, SH 63, Chhendipada Road, Angul – 759111, Orissa, India

Tel No.: 91-6761-254191/95

Fax No.: 91-6761-25414/144

 

·         Balkudra, Patratu, District – Ramgarh – 829143, Jharkhand, India

Tel No.: 91-6553-275724/275726

Fax No.: 91-6553-275744

 

·         Iron Ore Pellet Plant, P O Box No. 86, Joda – Barbil Highway, Barbil, District – Keonjhar – 758035, Orissa, India

Tel No.: 91-6767-248817

Fax No.: 91-6767-248620

 

·         Jindal Open Cast Coal Mines, Village Dongamahua, P.O. Dhorabhatta (Tamnar), District Raigarh – 496107, Chhattisgarh, India

Tel No.: 91-7767-203538/203485

Fax No.: 91-7767-281611

 

·         TRB Iron Ore Mines, At P.O Tensa, District Sundergarh – 770042, Orissa, India

Tel No.: 91-6625-236023/24

Fax No.: 91-6625-236022  

 

 

Marketing Offices :

Located at :

 

·         Chennai

·         Jameshdpur

·         Bhopal

·         Bhubaneswar

·         Kolkata

·         Raipur

·         Mumbai

·         Hyderabad

·         Bangalur

·         Ahmedabad

 

 

Branch Offices :

Located at :

 

·         Ahmedabad

·         Bangalore

·         Bhubaneshwar

·         Hyderabad

·         Ranchi

·         Kolkata

 

 

Stock Yards :

Located at :

 

·         Ahemabad

·         Bhopal

·         Chennai

·         Faridabad

·         Ghaziabad

·         Hyderabad

·         Kolkata

·         Ludhiana

·         Rahuri

·         Nagpur

·         Raipur

·         Cuttack

 

 

International Locations :

 

 

Located at :

 

·         Bolivia

·         China

·         Democratic Republic of Congo

·         Indonesia

·         Madagascar

·         Mozambique

·         South Africa

·         Oman

·         Zimbabwe

·         Australia

 

 

DIRECTORS

 

As on 31.03.2011

 

Name :

Mrs. Savitri Jindal

Designation :

Chairperson Emeritus

 

 

Name :

Mr. Naveen Jindal

Designation :

Chairman and Managing Director

 

 

Name :

Mr. Ratan Jindal

Designation :

Director

 

 

Name :

Mr. Vikrant Gujral

Designation :

Group Vice Chairman and Head Global Ventures

 

 

Name :

Mr. Anand Goel

Designation :

Anand Goel Joint Managing Director

 

 

Name :

Sushil Maroo

Designation :

Director

 

 

Name :

Mr. Naushad A. Ansari

Designation :

Wholetime Director

 

 

Name :

Mr. S. Ananthakrishnan

Designation :

Nominee Director, Independent - IDBI Bank Limited

 

 

Name :

Mr. R. V. Shahi

Designation :

Director, Independent

 

 

Name :

Mr. Arun K. Purwar

Designation :

Director, Independent

 

 

Name :

Mr. Arun Kumar

Designation :

Director, Independent

 

 

Name :

Mr. Haigreve Khaitan

Designation :

Director, Independent

 

 

Name :

Mr. Hardip Singh Wirk

Designation :

Director, Independent

 

 

Name :

Mr. Rahul Mehra

Designation :

Director, Independent

 

 

KEY EXECUTIVES

 

Name :

Mr. T. K. Sadhu

Designation :

Company Secretary

 

 

MANAGEMENT TEAM

 

Name :

Mr. V R Sharma

Designation :

Dy. Managing Director and CEO (Steel Business)

 

 

Name :

Mr. John C. Elmore

Designation :

Director, Strategy and Business Coordination

 

 

Name :

Mr. Rajeev Bhadauria

Designation :

Director Group HR

 

 

Name :

Mr. Jasper Marias

Designation :

Director, Coal Gasification

 

 

Name :

Mr. Rajesh Jha

Designation :

Executive Director, Angul

 

 

Name :

Mr. Jona Pillay

Designation :

Executive Director, CTL

 

 

Name :

Mr. Ramesh Raina

Designation :

Executive Director, Sales and Marketing

 

 

Name :

Mr. Lalji Dwivedi

Designation :

Executive Director Sales, South and West

 

 

Name :

Mr. GDS Sohal

Designation :

Executive Director, Cement

 

 

Name :

Mr. D N Abrol

Designation :

Executive Director, Raw Materials

 

 

Name :

Mr. DK Saraogi

Designation :

Executive President and Head, Jindal Shadeed Oman

 

 

Name :

Mr. Pravin Purang

Designation :

Advisor-Supply Chain Management

 

 

Name :

Mr. J.B. Karamchandani

Designation :

President, Architectural Cell

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

As on 31.12.2011

 

Category of Shareholders

No. of Shares

Percentage of Holding

(A) Shareholding of Promoter and Promoter Group

 

 

(1) Indian

 

 

Individuals / Hindu Undivided Family

13643572

1.46

Bodies Corporate

461403550

49.36

Sub Total

475047122

50.82

(2) Foreign

 

 

Individuals (Non-Residents Individuals / Foreign Individuals)

572400

0.06

Bodies Corporate

71997600

7.70

Sub Total

72570000

7.76

Total shareholding of Promoter and Promoter Group (A)

 

 

(B) Public Shareholding

 

 

(1) Institutions

 

 

Mutual Funds / UTI

28501534

3.05

Financial Institutions / Banks

344093

0.04

Central Government / State Government(s)

9930

--

Insurance Companies

44046127

4.71

Foreign Institutional Investors

199082105

21.30

Sub Total

271983789

29.09

(2) Non-Institutions

 

 

Bodies Corporate

30482042

3.26

Individuals

 

 

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

71635911

7.66

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

3313564

0.35

Any Others (Specify)

9801390

1.05

Trusts

286511

0.03

Non Resident Indians

9514657

1.02

Foreign Nationals

222

--

Sub Total

115232907

12.33

Total Public shareholding (B)

387216696

41.42

Total (A)+(B)

934833818

100.00

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

-

-

(1) Promoter and Promoter Group

-

-

(2) Public

-

-

Sub Total

-

-

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

934833818

-

 

 

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturers of Sponge Iron and Mild Steel Slabs, Mining of Ferro Chrome and Generation of Electricity.

 

 

Products :

Product Description

Item Code No.                        

Sponge Iron

72.03

Mild Steel

72.07

 

PRODUCTION STATUS AS ON 31.03.2011

 

Particulars

Unit

Installed Capacity

 

At Raigarh

 

 

Sponge Iron

M.T.

1370000

Mild Steel

M.T.

3000000

Ferro Alloys

M.T.

36000

Power

M.W.

623

Hot Metal/Pig Iron

M.T

1670000

Rail and Universal Beam Mill

M.T

750000

Plate Mill

M.T

1000000

Fabricated Structures

M.T.

60000

Cement Plany

M.T

500000

Medium and Light Section Mill

M.T

600000

At Raipur

 

 

Machinery and Castings

M.T.

11500

Ingots

M.T.

30000

CF Castings

M.T.

3000

AT Barbil

 

 

Pelletization Plant

M.T

4500000

At Satara (Maharashtra)

 

 

Wind Energy

MW

24

At Patratu

 

 

Wire Rod

M.T.

600000

Bar Mill

M.T.

1000000

At Angul

 

 

Power

M.T.

135

 

Note: Installed capacity is as certified by the management and relied upon by the auditors being a technical matter.

 

Particulars

Unit

Production

 

Sponge Iron

M.T.

1319840

M S Round

M.T.

367787

H.C. Ferro Crome

M.T.

17149

Power

KWH

3420

Hot Metal/Pig Iron

M.T

1652592

Parallel Flange Beam / Columns

M.T

372581

Universal Plate / Coil

M.T

735596

Other Finished Steel Products

  M.T. 

64653

Other Semi Steel Products

M.T.

1907083

Machineries

M.T.

8613

Wire Rod

M.T.

154734

Bars

M.T

128

Fabricated Structures

M.T.

56094

Cement

M.T

145054

Medium and Light Sections

M.T

31411

Iron Ore Pellets

M.T.

2787285

Wind Energy

Million KW/H

46

 

 

GENERAL INFORMATION

 

No. of Employees :

15000 (Approximately)

 

 

Bankers :

·         State Bank of India

·         Punjab National Bank

·         State Bank of Patiala

·         ICICI Bank Limited

·         Canara Bank

·         Industrial Development Bank of India

·         Export - Import Bank of India

·         Jammu and Kashmir Bank Limited

·         Indian Overseas Bank

·         Bank of Bahrain and Kuwait B.S.C

·         Lord Krishna Bank Limited

 

 

Facilities :

Secured Loans

As on 31.03.2011

(Rs. In Millions)

As on 31.03.2010

(Rs. In Millions)

Debentures

 

 

9.80% Secured Redeemable Non Convertible Debentures of Rs.1.000 Million each

10000.000

10000.000

9.80% Secured Redeemable Non Convertible Debentures of Rs.1.000 Million each

5000.000

5000.000

9.80% Secured Redeemable Non Convertible Debentures of Rs.1.000 Million each

620.000

620.000

8.50% Secured Redeemable Non Convertible Debentures of Rs.1.000 Million each

250.000

250.000

8.50 % Secured Redeemable Non Convertible Debentures of Rs.1.000 Million each

750.000

750.000

6.75 Secured Redeemable Non Convertible Debentures of Rs.1.000 Million each

1000.000

1000.000

Term Loans

 

 

From Banks and others

36133.400

22163.600

Others

0.000

54.600

Working capital Borrowings From Banks

1555.900

2513.400

Total

55309.300

42351.600

 

Notes :

 

(A) DEBENTURES

 

i)         Debentures placed with Life Insurance Corporation of India on private placement basis are redeemable at par in 2 equal annual installments at the end of 9.5 and 10.5 years from the date of respective allotments i.e. Rs.1000.000 Millions (12.10.2009), Rs.1500.000 Millions (22.10.2009), Rs.1500.000 Millions (24.11.2009), Rs.1500.000 Millions (24.12.2009), Rs.1500.000 Millions (25.01.2010), Rs.1500.000 Millions (19.02.2010) and Rs.150 Millions (26.03.2010). The debentures are secured on pari-passu charge basis by way of mortgage of immovable properties and hypothecation of movable fixed assets created/to be created on the 6x135 MW Power Plant Project at Angul, Orissa in favour of the Debenture Trustees.

 

ii)       Debentures placed with Life Insurance Corporation of India on private placement basis are redeemable at par in 2 equal annual installments at the end of 9.5 and 10.5 years from the date of respective allotments i.e. Rs.1000.000 Millions (24.08.2009), Rs.800.000 Millions (08.09.2009), Rs.800.000 Millions (08.10.2009), Rs.800.000 Millions (09.11.2009), Rs.800.000 Millions (08.12.2009) and Rs.800.000 Millions (08.01.2010). T he debentures are secured on pari-passu charge basis by way of mortgage of immovable properties and hypothecation of movable fixed assets of the Company in favour of the Debenture Trustees.

 

iii)      Debentures placed with SBI Life Insurance Company Limited on private placement basis are redeemable at par in 5 equal annual installments commencing from the end of 8 years from the date of allotment i.e. 29.12.2009. The debentures are secured on pari passu basis by way of mortgage of immovable properties and hypothecation of movable assets created/to be created on the 6x135 MW Power Plant Project at Angul, Orissa in favour of the Debenture Trustees.

 

iv)      Debentures placed with ICICI Lombard General Insurance Company Limited on private placement basis are redeemable at par at the end of 5 years from the date of allotment i.e. 03.12.2009. The debentures are secured on pari-passu basis by way of mortgage of immovable properties and hypothecation of movable fixed assets of the Company in favour of the Debenture Trustees.

 

v)        Debentures placed with ICICI Prudential Life Insurance Company Limited on private placement basis are redeemable at par at the end of 5 years from the date of allotment i.e. 03.12.2009. The debentures are secured on pari-passu basis by way of mortgage of immovable properties and hypothecation of movable fixed assets of the Company in favour of the Debenture Trustees.

 

vi)      Debentures placed with LIC Mutual Fund Asset Management Company Limited on private placement basis are redeemable at par at the end of 23 months from the date of allotment i.e. 22.01.2010. The debentures are secured on pari-passu basis by way of mortgage of immovable properties and hypothecation of movable fixed assets of the Company in favour of the Debenture Trustees.

 

(B) TERM LOANS

 

Loans and Advances from Banks and Others

i)         Loans of Rs.2551.100 Millions (Previous year Rs.3790.800 Millions) are secured by exclusive charge on fixed assets created under Steel expansion project at Raigarh, Chhattisgarh;

 

ii)       Loans of Rs.1968.700 Millions (Previous year Rs.2872.700 Millions) are secured by exclusive charge on fixed assets created under Plate M ill project at Raigarh, Chhattisgarh;

 

iii)      Loans of Rs.1114.300 Millions (Previous year Rs.1457.100 Millions) are secured by exclusive charge on fixed assets created under 3x25 MW Power Plant at Raigarh, Chhattisgarh;

 

iv)      Loans of Rs.4549.900 Millions (Previous year Rs.3499.100 Millions) are secured by exclusive charge on fixed assets created/ to be created under the D RI project at Angul, Orissa;

 

v)        Loans of Rs.7889.700 Millions (Previous year Rs.4144.600 Millions) are secured by exclusive charge on fixed assets created under 2X135 MW Power Plant (Phase - 1) at Dongamauha, Raigarh, Chhattisgarh;

 

vi)      Loans of Rs.1405.500 Millions (Previous year Rs.670.000 Millions) are secured by exclusive charge on fixed assets created/to be created under 2X135 MW Power Plant (Phase - 2) at Dongamauha, Raigarh, Chhattisgarh;

 

vii)     Loans of Rs.10549.700 Millions (Previous year Rs.200.000 Millions) are secured by exclusive charge on fixed assets created/ to be created under 1.6 MT PA Integrated Steel Plant and 1.5 MT PA Plate M ill project at Angul, Orissa;

 

viii)   Loans of Rs.1000.000 Millions (Previous year Rs. Nil) are secured/to be secured by exclusive charge on fixed assets created/to be created under 6x135 MW Power Plant Project at Angul, Orissa;

 

ix)     Loan of Rs.5104.600 Millions (Previous year Rs.5347.900 Millions) are secured by subservient charge on current assets of the Company

 

x)       Loans of Rs. Nil (Previous year Rs.181.400 Millions) were secured by first pari - passu charge in favour of Banks by way of mortgage of the Company’s immovable properties and hypothecation of fixed assets; out of which loans of Rs. Nil (Previous year Rs.40.800 Millions) were also secured by a personal guarantee given by a Director of the Company.

 

Repayment due within one year Rs.4421.600 Millions (Previous year Rs.2726.400 Millions)

 

(C) OTHERS

 

Secured by hypothecation of the specific assets financed.

 

(D) WORKING CAPITAL BORROWING FROM BANKS

 

Secured by hypothecation by way of first charge on stocks of finished goods, raw materials, work in progress, stores and spares and book debts and second charge in respect of other movable and immovable assets.

 

Unsecured Loans

As on 31.03.2011

(Rs. In Millions)

As on 31.03.2010

(Rs. In Millions)

Fixed Deposits from Public

596.700

705.800

Short Term Loans from Banks / Mutual Funds

7958.200

2500.000

Non-Convertible Debentures

0.000

750.000

Inter Corporate Deposits (from Subsidiary)

15185.600

11985.600

Buyers’ Credit from Banks

21218.700

9844.500

External commercial Borrowing from Banks (ECB)

20878.200

15695.100

Total

65837.400

41481.000

 

 

 

Banking Relations :

--

 

 

Statutory Auditors :

 

Name :

S. S. Kothari Metha and Company

Chartered Accountants

Address :

145-149, Tribhuwan Complex, Ishwar Nagar, Mathura Road, New Delhi – 110065, India

 

 

Cost Auditors :

 

Name :

Ramanath Iyer and Company

Address :

BL- 4, (Paschmi) Shalimar Bagh, New Delhi – 110088, India

 

 

Subsidiaries and Step-down Subsidiaries :

Subsidiaries

·         Jindal M inerals and Metals Africa Limited

·         Jindal Power Limited

·         Jindal Steel and Power (Mauritius) Limited

·         Jindal Steel Bolivia SA

 

 

Subsidiaries of Jindal Power Limited :

·         Attunli Hydro Electric Power Company Limited

·         Etalin Hydro Electric Power Company Limited

·         Jindal Hydro Power Limited

·         Jindal Power  Distribution Limited

·         Jindal Power Trading Company Limited (formerly Chhattisgarh Energy Trading Company Limited)

·         Jindal Power Transmission Limited

·         Subansiri Hydro Electric Power Company Limited

 

 

Subsidiaries of Jindal Minerals and Metals Africa Limited :

Jindal Minerals and Metals Africa Congo SPRL

 

 

Subsidiaries of Jindal Steel and Power (Mauritius) Limited :

·         Affiliate Overseas Limited

·         Enduring Overseas Limited

·         Harmony Overseas Limited

·         Jindal Africa Investments (Pty) Limited

·         Jindal Brasil Mineracao SA

·         Jindal D RC SPRL

·         Jindal  Investimentos  LDA

·         Jindal  Investment Holdings Limited

·         Jindal Madagascar SARL

·         Jindal Minerals M ining Limited (Till 03.11.2010)

·         Jindal Mining and Exploration Limited

·         Jindal Mining Industry LLC

·         Jindal Power LLC

·         Jindal Steel and Power (Australia) Pty Limited (w.e.f. 15.06.2010)

·         Jindal Steel and Power Zimbabwe Limited (w.e.f. 06.05.2010)

·         JSPL Mozambique Minerals LDA

·         Jubilant Overseas Limited

·         Osho Madagascar SARL

·         PT Jindal Overseas

·         Rolling Hills Resources LLC

·         Shadeed Iron and Steel Company LLC (w.e.f. 29.06.2010)

·         Skyhigh Overseas Limited

·         Trans Atlantic Trading Limited

·         Vision Overseas Limited

·         Worth Overseas Limited

 

 

Others :

·         Belde Empreendimentos Mineiros Limited, a subsidiary of JSPL Mozambique Minerais LDA

·         Eastern Solid Fuels (Pty) Limited, a subsidiary of Jindal Mining and Exploration Limited

·         Gas to Liquids International S.A., a subsidiary of Worth Overseas Limited

·         Jindal Mining (Pty) Limited, a subsidiary of E astern Solid Fuels (Pty) Limited

·         Kasai Sud Diamant, a subsidiary of Jindal D RC SPRL

 

·          

Associates

·         Angul Sukinda Railway Limited

·         Nalwa Steel and Power Limited

·         Saras Mineracao de Ferro S.A. (Associate of Jindal Steel and Power Mauritius Limited) (Till 02.06.2010)

·         Jindal Infosolutions Private Limited (w.e.f. 30.03.2011)

 

·          

Joint Ventures

·         Jindal Synfuels Limited (formerly Jindal Coal to Liquid Limited)

·         Shresht Mining and Metals Private Limited

·         Urtan North Mining Private Limited

 

 

Enterprises over which Key Management Personnel and their relatives exercise significant influence

and with whom transactions have taken place during the year :

·         Advance Sporting Arms Private Limited

·         Bir Plantation Private Limited

·         Gagan Infraenergy Limited (formerly Gagan Sponge Iron Limited)

·         India Flysafe Aviation Limited

·         Jindal Coal Private Limited

·         Jindal Realty Private Limited

·         Jindal Rex Exploration Private Limited

·         Jindal Saw Limited

·         Jindal Stainless Limited

·         Jindal System Private Limited

·         Minerals Management Services (India) Private Limited (formerly Minerals Management Services (India) Limited)

·         Nalwa Sons Investment Limited

·         Opelina Finance and Investment Limited

·         Trishakti Real E state Infrastructure and Developers (Private) Limited

·         Uttam Vidyut Transmission Private Limited

·         YNO Finvest Private Limited

 

 

CAPITAL STRUCTURE

 

After 28.09.2010

 

Authorised Capital :

 

No. of Shares

Type

Value

Amount

2000000000

Equity Shares

Re.1/- each

Rs. 2000.000 Millions

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

 

No. of Shares

Type

Value

Amount

934833818

Equity Shares

Re.1/- each

Rs. 934.834 Millions

 

 

 

 

 

 

As on 31.03.2011

 

Authorised Capital :

 

No. of Shares

Type

Value

Amount

2000000000

Equity Shares

Re.1/- each

Rs. 2000.000 Millions

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

 

No. of Shares

Type

Value

Amount

934269031

Equity Shares

Re.1/- each

Rs. 934.300 Millions

 

 

 

 

 

 

Notes:

(A)    12,61,22,840 (Previous year 12,61,22,840) Equity shares of Re. 1 each have been allotted as fully paid up to the erstwhile shareholders of Jindal Strips Limited pursuant to the Scheme of Arrangement sanctioned by the Hon’ble High Court of Punjab and Haryana.

 

(B)    30,34,949 (Previous year 9,29,869) Equity Shares of Re. 1 each have been allotted as fully paid up to the employees (including those of subsidiary company) under the Employees Stock Option Scheme.

 

(C)    77,56,51,530 shares of face value of Re. 1 per share were allotted as fully paid bonus shares by utilization of Rs.775.651 Millions from Securities Premium Account during the earlier year.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

ABRIDGED BALANCE SHEET

 

SHAREHOLDERS FUNDS

31.03.2011

31.03.2010

31.03.2009

 

 

 

 

1] Share Capital

934.300

931.200

164.700

2] Share Application Money

0.000

0.000

0.000

3] Reserves & Surplus

85941.200

66305.400

53716.600

4] (Accumulated Losses)

0.000

0.000

0.000

NETWORTH

86875.500

67236.600

53881.300

LOAN FUNDS

 

 

 

1] Secured Loans

55309.300

42351.600

21054.900

2] Unsecured Loans

65837.400

41481.000

28571.600

TOTAL BORROWING

121146.700

83832.600

49626.500

Employee’s Stock Options  outstanding

18.000

226.700

298.200

Less : Deferred employee compensation expenditure

(0.100)

(3.300)

(26.300)

DEFERRED TAX LIABILITIES

8783.300

7150.000

5997.700

 

 

 

 

TOTAL

216823.400

158442.600

109777.400

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

100004.200

67040.600

57459.000

Capital work-in-progress

70778.700

64352.800

23180.100

 

 

 

 

INVESTMENT

12100.100

10671.100

12334.000

DEFERREX TAX ASSETS

0.000

0.000

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories

22041.200

13285.000

12099.600

 

Sundry Debtors

7371.200

6223.600

3914.600

 

Cash & Bank Balances

515.600

601.000

3089.600

 

Other Current Assets

0.000

0.000

0.000

 

Loans & Advances

51050.000

38659.400

31990.400

Total Current Assets

80978.000

58769.000

51094.200

Less : CURRENT LIABILITIES & PROVISIONS
 
 
 

 

Sundry Creditors

20493.200

22117.100

14715.700

 

Other Current Liabilities

7612.900

6866.900

9746.300

 

Provisions

18963.400

13437.100

9858.100

Total Current Liabilities

47069.500

42421.100

34320.100

Net Current Assets

33908.500

16347.900

16774.100

 

 

 

 

MISCELLANEOUS EXPENSES

31.900

30.200

30.200

 

 

 

 

TOTAL

216823.400

158442.600

109777.400

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2011

31.03.2010

31.03.2009

 

SALES

 

 

 

 

 

Income

95736.300

73675.900

76531.900

 

 

Other Income

1437.100

1173.100

1462.400

 

 

TOTAL                                     (A)

97173.400

74849.000

77994.300

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Materials, Manufacturing and others

48279.200

40621.600

42191.900

 

 

Administrative, Selling and Others

8855.000

5978.600

7986.900

 

 

Personnel

2777.800

2127.500

1775.300

 

 

Miscellaneous Expenses

0.000

0.000

2.000

 

 

TOTAL (B)

59912.000

48727.700

51956.100

 

 

 

 

 

Less

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

37261.400

26121.300

26038.200

 

 

 

 

 

Less

FINANCIAL EXPENSES                         (D)

2850.100

1924.700

1689.100

 

 

 

 

 

 

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

34411.300

24196.600

24349.100

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

6877.700

5121.600

4330.300

 

 

 

 

 

 

PROFIT BEFORE TAX (E-F)                               (G)

27533.600

19075.000

20018.800

 

 

 

 

 

Less

TAX                                                                  (H)

6892.400

4278.200

4654.000

 

 

 

 

 

 

PROFIT AFTER TAX (G-H)                                (I)

20641.200

14796.800

15364.800

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

54788.300

43189.500

30478.000

 

 

 

 

 

Less

APPROPRIATIONS

 

 

 

 

 

Proposed Dividend on Equity Shares

1401.900

1165.200

853.300

 

 

Corporate tax on Proposed Dividend

37.500

42.800

0.000

 

 

General Reserve

2100.000

1500.000

1550.000

 

 

Debenture Redemption Reserve

770.000

490.000

250.000

 

BALANCE CARRIED TO THE B/S

71120.100

54788.300

43189.500

 

 

 

 

 

 

FOB Value of Export Sales

10736.100

4104.100

10213.700

 

 

 

 

 

 

IMPORTS

 

 

 

 

 

Raw Materials

18715.700

1129.400

9132.100

 

 

Components & Spares Parts

1969.600

1998.100

879.200

 

 

Capital Goods and Others

12629.400

18132.400

6186.600

 

TOTAL IMPORTS

33314.700

21259.900

16197.900

 

 

 

 

 

 

Earnings Per Share (Rs.)

 

 

 

 

Basic

22.11

15.90

99.44

 

Diluted

22.09

15.78

98.58

 

 

QUARTERLY RESULTS

 

PARTICULARS

 

30.06.2011

30.09.2011

31.12.2011

Type

1st Quarter

2nd Quarter

3rd Quarter

Net Sales

25265.300

33338.100

32983.200

Total Expenditure

15631.100

22471.000

23028.500

PBIDT (Excl OI)

9634.200

10867.100

9954.700

Other Income

166.500

77.200

202.200

Operating Profit

9800.700

10944.300

10156.900

Interest

1324.700

1458.700

1553.000

Exceptional Items

0.000

(1477.500)

0.000

PBDT

8476.000

8008.100

8603.900

Depreciation

2065.900

2139.200

2102.800

Profit Before Tax

6410.100

5868.900

6501.100

Tax

1708.500

1911.000

1890.400

Provisions and contingencies

0.000

0.000

0.000

Profit After Tax

4701.600

3957.900

4610.700

Extraordinary Items

0.000

0.000

0.000

Prior Period Expenses

0.000

0.000

0.000

Other Adjustments

0.000

0.000

0.000

Net Profit

4701.600

3957.900

4610.700

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2011

31.03.2010

31.03.2009

PAT / Total Income

(%)

21.24

19.76
19.70

 

 

 

 
 

Net Profit Margin

(PBT/Sales)

(%)

28.76

25.89
26.16

 

 

 

 
 

Return on Total Assets

(PBT/Total Assets}

(%)

15.21

15.16
18.44

 

 

 

 
 

Return on Investment (ROI)

(PBT/Networth)

 

0.32

0.28
0.37

 

 

 

 
 

Debt Equity Ratio

(Total Liability/Networth)

 

1.94

1.87
1.56

 

 

 

 
 

Current Ratio

(Current Asset/Current Liability)

 

1.72

1.38
1.49

 

 

LOCAL AGENCY FURTHER INFORMATION

 

OPERATIONAL REVIEW

 

The Company has, on a consolidated basis, achieved an aggregate income of Rs.131936.000 Millions, compared to previous year’s Rs.111518.200 Millions. Profit before tax has increased to Rs.49880.200 Millions in 2010-11 from Rs.45534.500 Millions in 2009-10. Profit after tax has also grown to Rs.38040.100 Millions in the year, from Rs.36345.600 Millions in the previous year. The Reserves and Surplus have touched Rs.140150.800 Millions.

 

Sponge Iron

 

The Company produced 13,19,840 MT of Sponge Iron in the year under report as against previous year’s production of 13,09,408 MT and achieved a capacity utilisation of 96.3%.

 

Ferro Chrome

 

The Company produced 17,149 MT of HC Ferro Chrome/ silico manganese during the year as against 540 MT in the previous year.

 

Power

 

The Company generated 2,942 million Kwh of power during the year under report as against last year’s 2,976 million Kwh of power.

 

Raipur Unit

 

Raipur Unit produced 1,579 MT of casting and has done machining of 8,613 MT as against 1,665 MT and 8,885 MT respectively of previous year.

 

Mining

 

The production of calibrated iron ore at captive mine at Tensa in Orissa was 29.09 lacs MT as against previous year’s production of 12.34 lacs MT. The Company has exported 8.42 lacs MT of iron ore fines as against 6.09 lacs MT in the previous year. Coal production at captive mine was 59.99 lacs MT, as against previous year’s production of 59.98 lacs MT.

 

PROJECTS COMPLETED

 

Following projects were completed during the year under report:

 

1. Steel Melting Shop: With the modification in mini blast furnace and by commissioning of steel melting shop (SMS - III) in May 2010, the production capacity of Hot Metal / Pig Iron has increased from 1.5 MTPA to 1.67 MTPA and of Mild Steel from 2.4 MTPA to 3.0 MTPA.

 

2. Captive Power Plant: Out of the four captive power generating units of 135 MW each to be set up in two phases at Dongamahua, Raigarh, two units of 135 MW each under Phase – I were synchronised in May and September 2010 respectively and are generating power. Both the units have stabilised their operations and power generated is utilised for Raigarh works.

 

810 MW (6x135 MW) captive power plant is a part of steel plant proposed to be set up at Angul, Orissa.

The first unit of 135 MW has been commissioned in March 2011.

 

The Company’s total power generation capacity has increased to 782 MW which includes 24 MW of windmill power plant at Satara, Maharashtra.

 

3. Cement Plant: A 0.5 MTPA capacity slag grinding unit at Raigarh, Chhattisgarh has been completed and is operating since May 2010. This plant is utilising the slag produced by blast furnace I and II and clinker, purchased from outside, is mixed with slag to produce cement. A part of the production is used in-house for various civil works and balance is sold in the market.

 

4. Medium and Light Section Mill: A 0.6 MTPA medium and light section mill at Raigarh, Chhattisgarh has been completed and commenced production from January 2011. This mill has the capacity to produce 400 mm beams, 300 mm channels and 200 mm channels which are in great demand. This mill will complement the product range of rail and universal beam mill (RUBM) which produces 100 mm beams and 400 mm columns and rails. The capacity to produce a range of products has provided the Company a strong market edge.

 

5. 6 Strand Billet caster: This unit is a part of SMS- III and started commercial production from March 2011. The billets are used as raw material for the production of medium sections, beams, channels, wire rods used by construction sector and angels used for construction of transmission towers.

 

6. Wire Rod Mill and Bar Mill: A 0.6 MTPA capacity wire rod mill and 1.0 MTPA capacity bar mill, at Patratu, Jharkhand has commenced production on 29th March, 2010 and 30th March, 2011 respectively. Wire rod mill produces wire rods of 5.2 mm to 22 mm and rebars of 6, 8 10 and 12 mm, which are used in the manufacture of springs, high tension fasteners, electrodes, nails, concrete wires. Bar mill produces rebars of 8 mm to 40 mm size, angels of 50x50x5 mm to 90x90x9 mm and rounds of 20-63 mm diameter and RCS of 40-63 mm diameter. These products are used in civil construction, fabrication and structural work and for the production of fasteners and bolts, among others.

 

7. Shadeed Sponge Iron Plant: The Company through its 100% subsidiary Jindal Steel and Power (Mauritius) Limited, Mauritius (JSPLM), has acquired Shadeed Iron and Steel Company LLC (SISCO), a Company incorporated under the laws of the Sultanate of Oman, in June 2010. SISCO has a 1.5 MTPA gas-based Hot Briquetted Iron (HBI) plant at the industrial port area of Sohar, Oman. The plant has been commissioned in record time and commercial operations started in December 2010, three months ahead of its schedule. The plant has a 600 meter long quay with 19 meter draught capable to handle cape size vessels. The Company proposes to set up a 1X200 T/hr EAF and a billet caster and the orders for the same will be placed in the current financial year.

 

8. Producer Gas Plant: 2x48500 Nm3/hr producer gas plant has been set up at Barbil, Orissa and is operating since March 2010. The gas produced by this plant is a substitute for furnace oil, which is used in the pellet plant.

 

PROJECTS UNDER IMPLEMENTATION

 

1. Captive Power Plant in Raigarh, Chhattisgarh: Under Phase – II, 270 MW (2 x 135 MW) captive power plant, is being set up at Dongamahua, Raigarh. Environment clearance and consent to establish have been obtained. Complete BOP packages like CHP, AHP and Water Treatment Plant, Switchyard, CandI Packages etc. have been awarded to different vendors. Target date for the synchronisation of the Unit I of Phase II is September 2011 and for Unit II is December 2011.

 

2. Steel Plant in Angul, Orissa: The Company is at an advanced stage of implementation of this project. All major orders for engineering, equipment supply and construction works have been placed. Out of 4,331 acres of land required for the project, 4,067 acres of land have already been acquired. The following facilities are being set up viz., plate mill (1.5 MTPA), coal gasification plant (225,000Nm3/hr), sponge iron plant (1.8 MTPA), steel melting shop (1.64 MTPA), slab caster (1.62 MTPA), oxygen plant (2x1200 TPD), lime and dollime plant

 

(2x500 TPD), coal washery (2x600 TPH) and captive power plant (6x135 MW). Target date of commissioning of the steel plant is March 2012.

 

3. Steel plant in Patratu, Jharkhand: The Company is setting up an integrated steel plant in Patratu in the state of Jharkhand with the following key facilities viz. Blast Furnace (10,000 TPD), Sinter Plant (5.04 MTPA), Coke Ovens (1.70 MTPA), billet caster (2 X 8 strands), Oxygen Plant (2 X 1300 TPD), Lime and Dollime Plant (3 X 600 TPD), BOF Shop (2 X 180/200 Tons). Orders for major technological packages have been finalised/are in the advanced stages of finalisation. The steel plant is expected to be commissioned in second half of 2013.

 

4. Machinery Division, Raipur, Chhattisgarh: The Company is expanding production capacity of this division from 5,100 to 10,000 metric tons per annum. During the year under report, two sheds were completed and the CNC machines have been commissioned enhancing the production capacity to 9,000 metric tons per annum. During the current financial year, two more sheds will be constructed in which cranes will be installed thereby increasing the production capacity to 10,000 metric tons per annum. This division is capable of manufacturing equipment for steel melting shop, blast furnace, sponge iron plant, sinter plant etc. The production capacity of foundry division has been increased to 4,600 metric tons. Work for setting up of Pressure Vessel Division with production capacity of 2,500 metric tons per annum is going ahead and sheds have been completed.

 

5. El-Mutun Iron Ore Mine, Bolivia: Jindal Steel Bolivia S.A (JSB), a subsidiary of the Company, has been allotted land for setting up of an integrated 1.7 MTPA steel plant, a 6 MTPA sponge iron plant, a 10 MTPA iron ore pellet plant and a 450 MW power plant. EIA clearance for mining and beneficiation plant has been obtained and the mining activity is progressing smoothly. Engineering consultant for the project has been appointed. All major packages for the project are in the process of finalization. The dispatch of the ore being produced is expected to start by June 2011.

 

SUBSIDIARY COMPANIES AND THEIR BUSINESS

 

Jindal Power Limited (JPL) is operating 1,000 MW (4 X 250 MW) power plant in Raigarh (Chhattisgarh). JPL has closed financial year 2010-11 with a total income of Rs.35643.500 Millions and earned a profit after tax of Rs.20016.000 Millions. The Company is expanding its power generation capacity by setting up 2,400 MW (4 X 600 MW) power plant adjacent to the existing site at Tamnar, Raigarh. JPL envisages setting up of 1,320 MW thermal power plant in Dumka, Jharkhand and 1,320 MW thermal power plant in Godda, Jharkhand and Hydro Electric Power Plants of 6,100 MW power generation capacity in the state of Arunachal Pradesh in Joint Venture with Hydro Power Development Corporation of Arunachal Pradesh Limited.

 

The Company has deepened and expanded its roots in the African continent and has its presence in Mozambique, South Africa, Congo, Madagascar, Zimbabwe, Tanzania and Zambia through subsidiary companies for undertaking the mining activities related to coal, limestone, base metals and precious metals.

 

 

 

MANAGEMENT DISCUSSION AND ANALYSIS

 

BUSINESS REVIEW

 

Indian economy has demonstrated remarkable resilience in countering the global financial crisis. Although the impact was felt on some critical economic indicators, such as declining GDP growth and shrinking global trade, the recovery was faster than most people expected. Improvement in agriculture and manufacturing sectors has shifted the growth trajectory back to 8.6% in 2010-11, although the performance of the service sector was not that impressive. The performance of the infrastructure sector in 2010-11 was mixed. While some sectors performed well, others failed to put up an impressive show; Telecommunication has performed well, but railways, road and power sectors could not achieve their targets. In addition, momentum in domestic savings and investment has accelerated the GDP growth. However, inflationary pressure continues to be a matter of considerable concern, triggered by high food and energy costs. With global crude prices crossing the $100 mark, the domestic inflationary pressure is bound to aggravate. The political unrest in the Middle East and North Africa had moderate impact on the country’s economy.

 

The exports have picked up during 2010-11 and are expected to achieve the growth target. Foreign exchange reserves have increased during the year but the exchange rate has depreciated. The Reserve Bank of India (RBI) has begun withdrawing the accommodating policy announced during the economic crisis as the shadows of the recession quickly became a thing of the past. India’s financial market has remained steady and continues to strengthen the economy.

 

In sharp contrast, advanced economies are still grappling with uncertainty on account of deficit, high public debt and unemployment. The process of recovery was jeopardized by sovereign debt crisis in the euro zone, concerns about the US fiscal policy and the sharp increase in commodity prices – food and energy. The rate of recovery for matured economies has been gradual in 2010. The economic recovery experienced in the US and EU during the second half of calendar year 2010 is expected to be reinforced in 2011.

 

OPPORTUNITIES AND THREATS

 

Steel represents the essential foundation, which anchors the modern world and its consumption provides a credible index to measuring the growth of an economy and the quality of life in a particular country. Steel consumption is crucial to enable the economy to move towards a more sustainable future. As the world is moving towards greener paradigms of economic growth, steel has acquired more importance; whether in the manufacture of lighter and more efficient transport vehicles, renewable energy generation, highly efficient power stations, construction of smart electrical grids, transport infrastructure development or high-energy efficient residential housing and commercial buildings.

 

India became the world’s fifth largest steel producer in 2010, compared to the eighth position in 2003, and is expected to become the second largest producer of crude steel by 2015 globally. The country has also maintained its leadership as the world’s largest producer of Direct Reduced Iron (DRI) or sponge iron.

 

Global steel production recovered strongly in 2010 to reach 1,414 million tons, registering a 15% rise over 2009, which is expected to sustain in 2011. Apparent steel use has increased by 13.1% to 1,272 million tons in 2010 after contracting by 6.6% in 2009. In 2011, it is expected that world steel demand will grow by 5.3% to reach a record 1,340 million tons. In India steel use is expected to increase by 13.6%; in China by 3.5%; Commonwealth of Independent States (CIS) countries by 11.1%; in European Union by 5.7% and North American Free Trade Agreement (NAFTA) countries by 8.7%.

 

The steel prices started rising steadily after June–July 2010 but increased sharply from January 2011 onwards on account of rising raw material costs and strengthening international demand. Prices of HR coil, HR plates, TMT and Billets, in particular, have increased sharply. International steel prices are expected to rise further in the financial year 2011-12 and are expected to drive domestic steel prices by 5-6%.

 

The Finance Bill 2011-12 is likely to have a neutral impact on the Indian Steel Industry. The export duty on iron ore fines and lumps has been hiked to 20% each from 5% and 15%, respectively. This will curtail iron ore exports, and is likely to benefit Indian steel industry in the long term as it will help India to be self reliant in iron ore.

 

Growth in the Indian steel sector will continue to be driven by construction, oil and gas, transportation, refining, telecom, ship building, power, automobiles, capital goods, consumer durables and infrastructure sector. Infrastructure sector is a priority sector for the Government and plan funds are sufficiently made available for its growth.

 

The steel industry faces major hurdles relating to project implementation and raw material security. The capacity expansion plans of major steel players (domestic and international) are facing issues related to land acquisition, raw material linkages and environmental clearances resulting in inordinate delay in project implementation, cost overruns and low investor confidence. The industry is facing shortage of coking coal and is largely dependent upon its import.

 

OUTLOOK

 

India’s steel industry plays a significant role in the country’s economic growth and enjoys a stronghold in the traditional sectors, such as infrastructure and construction, automobile, transportation, industrial applications, among others. With economic expansion, application of diverse steel grades and varieties will grow. The country’s steel sector has acquired considerable prestige on the global steel map with its giant steel mills, acquisition of global scale capacities, continuous modernisation and upgradation of old plants, improving energy efficiency and backward integration into global raw material sources. Global steel giants have shown interest in the industry due to its phenomenal performance and growth potential. The industry is poised for a quantum growth through sustained performance, which will elevate it to the next level.

 

The steel consumption in India is expected to grow significantly in the coming years as per capita finished steel consumption is far less than its regional counterparts. Demand for steel in India is expected to grow at a CAGR of 10-12% in the financial year 2010-11 to financial year 2014-15.

 

The Company envisages setting up of steel plants in Angul (Orissa) and Patratu (Jharkhand). It has set up 0.6 MTPA wire rod mill and 1.0 MTPA bar mill at Patratu, which were commissioned in March 2010 and March 2011 respectively. It plans to increase its sale through MoU customers and by selling value-added products and increase its market share particularly in structurals, plates, TMT rebars and Wire Rods. Additional stock yards and marketing offices are being set up in the country to enhance geographic reach and proximity to customers.

 

Power is one of the key inputs for steel making. The Company has commissioned 270 MW (2x135MW) phase–I out of 600 MW (4x150 MW) power project at Dongamahua, Chhattisgarh and this will meet the additional requirements of power of the Company. Units under phase-II will be commissioned during the current year. The setting up of captive power plants is part of the integrated steel plants being set up at Angul (Orissa) and Patratu (Jharkhand) for meeting their power requirement.

 

Apart from power, iron ore and coal are two other main inputs of steel making. The Company has captive iron ore and coal mines and is consistently making efforts for seeking allotment of such mines/ raw material linkages from the Central/ State Governments.

 

India’s power sector growth lags far behind the exponential escalation in demand, resulting in energy and peak shortages. Energy deficit averaged 9% and the peak power deficit averaged 12.6% during Fiscal 2003 to Fiscal 2011. The demand for power will grow in direct correlation with country’s economic growth. In line with this, the Company’s subsidiary, Jindal Power Limited (JPL), is directly as well as through its subsidiaries planning to set up thermal and hydro power projects in various parts of the country with an aggregate power generation capacity of 10,480 MW.

 

FINANCIAL PERFORMANCE

 

The Company’s overall operational performance has been satisfactory. During the financial year 2010-11, it achieved sales and other income of Rs.97173.400 Millions as against last year’s Rs.74849.000 Millions, registering an impressive growth of about 30%. Profit before interest and depreciation increased from Rs.26121.300 Millions to Rs.37261.400 Millions, registering a remarkable growth of about 43%. Profit before tax increased from Rs.19075.000 Millions to Rs.27533.600 Millions, registering an impressive growth of about 44%. Net profit increased by about 39% from Rs.14796.800 Millions to Rs.20641.200 Millions. Cash profit increased from Rs.21070.700 Millions to Rs.29152.200 Millions growing by about 38%. Reserves and surplus stood at Rs.85941.200 Millions. Net block of assets including capital work in progress stood at Rs.170782.900 Millions.

 

 

FINANCIAL MANAGEMENT

 

The Company’s expansion of production capacities at existing works and setting up of new plants have resulted in increased borrowings from banks, financial institutions and other lenders nationally and internationally. It has been availing multiple financial facilities from banks, financial institutions and other lenders to meet fund requirements for working capital and project implementation. Available credit options are thoroughly examined and sufficient care is taken to avail of these facilities at competitive terms and conditions. Financial facilities are appropriately secured as per terms of sanction. The Company’s senior management monitors the arrangement of funds, servicing of debts and management of internal accruals. The Company has arranged Rs.27170.000 Millions from banks and FIs to meet capital expenditure during the financial year 2010-11.

 

 

 

UNAUDITED STANDALONE FINANCIAL RESULTS FOR THE QUARTER ENDED ON 31st DECEMBER 2011

 

 (Rs. In Millions)

 

PARTICULARS

 

For The Quarter Ended

For The Nine Months Ended

 

31.12.2011

Unaudited

30.09.2011

Unaudited

31.12.2011

Unaudited

1. a) Net Sales / Income from Operations

32951.400

33172.200

91349.500

b) Other Operating Income

31.800

165.900

237.100

Total Income

32983.200

33338.100

91586.600

2. Expenditure

 

 

 

a) (Increase)/decrease in stock in trade and work in progress

(3676.000)

(46.900)

(5853.300)

b) Consumption of raw materials

14430.600

10257.400

32749.000

c) Purchase of traded goods

1267.300

797.400

2815.700

d) Employee cost

915.100

933.400

2729.200

e) Depreciation

2102.800

2139.200

6307.900

f) Stores and Spares consumed

3701.900

3794.900

10431.700

g) Power and Fuel

2328.600

2316.200

6533.000

h) Other Expenditure

4061.000

4418.600

11725.300

Total

25131.300

24610.200

67438.500

3. Profit from Operations before Other Income, Interest and Exceptional Items (1-2)

7851.900

8727.900

24148.100

4. Other Income

202.200

77.200

445.900

5. Profit before Interest and Exceptional Items (3+4)

8054.100

8805.100

24594.000

6. Interest and other Financial Expenses

1553.000

2458.700

4336.400

7. Profit after Interest but before Exceptional Items (5-6)

6501.100

7346.400

20257.600

8. Exceptional Items

--

1477.500

1477.500

9. Profit (+)/ Loss (-) from ordinary activities before tax (7-8)

6501.100

5868.900

18780.100

10. Tax expense

1890.400

1911.000

5509.900

11. Net Profit (+)/ Loss (-) from ordinary activities after tax (9-10)

4610.700

3957.900

13270.200

12. Extraordinary item (net of tax expense Rs. Nil )

--

--

--

13. Net Profit(+)/ Loss(-) for the period (11-12)

4610.700

3957.900

13270.200

14. Minority Interest

--

--

--

15. Share of Associates

--

--

--

16. Other Related Items

--

--

--

17. Consolidated Net Profit (+) / Loss (-) for the period 

--

--

--

18. Cash Profit

7303.200

6612.200

21108.900

19. Paid-up Equity Share Capital (Face Value of Rs.1/- Each)

934.800

934.500

934.800

20. Reserves Excluding Revaluation Reserve

--

--

--

21. Earning Per Share

 

 

 

a) Basic and diluted EPS before extraordinary items

4.93

4.24

14.20

b) Basic and diluted EPS after extraordinary items

4.93

4.23

14.20

22. Public Shareholding

 

 

 

-Number of Shares

387216696

386882453

387216696

- Percentage of Shareholding

41.42

41.40

41.42

 

 

 

 

23. Promoters and Promoter Group Shareholding

 

 

 

a) Pledged/Encumbered

 

 

 

- Number of Shares

6000

6000

6000

- Percentage of Shares (as a % of the Total Shareholding of promoter and promoter group)

0.00

0.00

0.00

- Percentage of Shares (as a % of the Total Share Capital of the Company)

0.00

0.00

0.00

 

 

 

 

b) Non Encumbered

 

 

 

- Number of Shares

547611122

547621142

547611122

- Percentage of Shares (as a % of the Total Shareholding of Promoter and Promoter Group)

100.00

100.00

100.00

- Percentage of Shares (as a % of the Total Share Capital of the Company)

58.58

58.60

58.58

 

 

SEGMENT WISE REPORTING OF REVENUE, RESULTS AND CAPITAL EMPLOYED FOR THE QUARTER ENDED ON 31st DECEMBER, 2011

 

                                                                                                                                                       (Rs. In Millions)

Particulars

 

 

For The Quarter Ended

For The Nine Months Ended

 

31.12.2011

Unaudited

30.09.2011

Unaudited

31.12.2011

Unaudited

1. Segment Revenue

 

 

 

a) Iron and Steel

31426.200

31944.400

87468.300

b) Power

4251.000

3518.100

11375.100

c) Others

549.200

672.300

1517.700

Sub Total

36226.400

36134.800

100361.100

Less: Inter-segment Revenue

3243.200

2796.700

8774.500

Net Sales/Income from Operations

32983.200

33338.100

91586.600

2. Segment Results

(Profit(+)/Loss(-) before Tax and interest from each segment)

 

 

 

a) Iron and Steel

8286.600

9740.800

25698.000

b) Power

1412.700

1044.200

3769.700

c) Others

(55.400)

0.700

(84.400)

Sub Total

9643.900

10785.700

29383.300

Less : Interest and Other Financial Charges

1553.000

1458.700

4336.400

Other un-allocable expenditure (net of un-allocable income)

1589.800

1980.600

4789.300

Exceptional Items

--

1477.500

1477.500

Total Profit Before Tax

6501.100

5868.900

18780.100

3. Capital Employed

(Segment Assets - Segment Liabilities)

 

 

 

a) Iron and Steel

88237.400

85721.000

88237.400

b) Power

29383.100

30501.000

29383.100

c) Others

5150.200

5127.200

5150.200

Total Segment Capital Employed

122770.700

121349.200

122770.700

 

NOTES:

 

(A)    4th Unit of 135 MW Power Plant at Dongamahua, Raigarh, Chhattisgarh and 2nd Unit of 135 MW Power Plant at Angul, Odisha have been commissioned on 18.01.2012, with this total 6 units are commissioned in series of 10 units of 135 MW.

 

(B)    Consolidated Profit for the Quarter ended 31.12.2011, includes Net Profit of Rs. 4813.200 Millions of Jindal Power Limited, a subsidiary company (Previous Year Rs. 4870.000 Millions).

 

(C)    No investor complaint was pending on 01.10.2011. During the quarter ended on 31.12.2011, 5 complaints were received and resolved.

 

(D)    The above results were reviewed by the Audit Committee and have been taken on record by the Board of Directors in their meeting held on 18.01.2012.

 

(E)    The above standalone results have been reviewed by auditors as per clause 41 of the listing agreement.

 

 

CONTINGENT LIABILITIES NOT PROVIDED FOR IN RESPECT OF (AS ON 31.03.2011):

 

a) Guarantees issued by the Company’s Bankers on behalf of the Company – Rs.3511.100 Millions

b) Letter of credit opened by banks – Rs.14531.200 Millions

c) Corporate guarantees/undertakings issued on behalf of third parties – Rs.33595.000 Millions

d) Disputed Excise Duty and Other demands – Rs.6847.700 Millions

e) Future liability on account of lease rent for unexpired period Rs. Nil

f) Bonds executed for machinery imports under EPCG Scheme – Rs.30399.900 Millions

g) Income Tax demands where the cases are pending at various stages of appeal with the authorities – Rs.1872.100 Millions

 

 

FIXED ASSETS

 

·         Land – Freehold

·         Land – Leasehold

·         Live Stock

·         Building

·         Plant and Machinery

·         Electrical Installation

·         Furniture and Fixtures

·         Vehicles

·         Air Craft (GE Lease)

·         Air Craft (Owned)

 

 

WEBSITE DETAILS

 

BUSINESS DESCRIPTION

 

Subject is a sponge iron manufacturer in India. As of March 31, 2011, the Company’s installed capacity at its Raigarh Unit include: 13,70,000 metric tons of sponge Iron; 30,00,000 metric tons of mild steel; 36, 000 metric tons of ferro alloys; 623 megawatts of power; 16,70,000 metric tons of hot metal/pig iron; 7,50,000 metric tons of rail and universal beam mill; 10,00,000 metric tons of plate mill, 60,000 metric tons of fabricated structures; 5,00,000 metric tons of cement plant and 6,00,000 metric tons of medium and light section mill. The Company’s segments include iron and steel; power, and others. The Company’s manufacturing plants are located at Raigarh in Chhattisgarh, Angul in Orissa and Patratu in Jharkhand. Its machinery division is located in Raipur. Its coal mines are located at Dongamahua and Tamnar, Chhattisgarh, iron ore mine at Tensa, Orissa and iron ore pelletisation plant at Barbil, Orissa. For the three months ended 30 June 2011, Jindal Steeland Power Limited's revenues increased 24% to RS39.73B. Net income decreased 3% to RS9.19B. Revenues reflects an increase in income from Iron and Steel and higher income from other business segments. Net income was offset by an increase in consumption of raw materials, higher employee costs, an increase in depreciation expenses and higher other expenses.

 

 

 

 

BOARD OF DIRECTORS

 

Savitri Jindal (Chairperson Emeritus)

 

Smt. Savitri Jindal serves as the Chairperson Emeritus of subject. She is Chairperson of JSW Steel Limited, Jindal Saw Limited, Jindal Stainless Limited, Jindal Industries Limited, Jindal ITF Limited and JITF Water Infrastructure Limited and Director on the Board of Rohit Tower Building Limited and Sonabheel Tea Limited. She is a member of Haryana Legislative Assembly since 2005 and she was reelected as member of Haryana Legislative Assembly in 2010.

 

Naveen Jindal (Executive Chairman of the Board, Managing Director)

 

Shri. Naveen Jindal has been appointed as the Executive Chairman of the Board, Managing Director of subject. He has done his M.B.A in 1992 from University of Texas at Dallas, U.S.A. and B.com (Hons) from Hans Raj College, Delhi University. He was the Joint Managing Director of Jindal Strips Limited for three and a half years and the Managing Director of Jindal Overseas (ME) FZE, Dubai for a period of nine months. He is the Managing director of the Company for the past nine years and possesses knowledge and experience in managing the affairs of the business and industry. In his capacity as Managing Director, he is managing all the affairs of the Company and international business activities. During the period of nine years and under his leadership, the Company has completed various expansion plans, completed new projects and achieved higher levels of growth. He is the Director of Jindal Stainless Limited, Jindal Power Limited, Salasar Finvest Limited, Jindal Synergy Investment Limited. and Nalwa Farms Private Limited. In his maiden attempt, he won Lok Sabha seat from Kurukshetra Constituency in the State of Haryana on 13.05.04 with a very high margin and is one of the young members of Parliament.

 

Vikrant Gujral (Group Executive Vice Chairman of the Board, Head - Global Ventures)

 

Shri. Vikrant Gujral is Group Executive Vice Chairman of the Board, Head - Global Ventures of subject. He is Mechanical Engineer and possesses 48 years experience of working in Steel industry out of which he has worked in Plants of Steel Authority of India Limited (SAIL) for 38 years. He has made substantial contribution towards growth of the Company during the last ten years.

 

S. Ananthakrishnan (Non-Executive Independent Director)

 

Shri S. Ananthakrishnan is Non-Executive Independent Director of subject. He is a qualified Company Secretary and a Cost Accountant. He is also a Certified Associate of the Indian Institute of Bankers. He has to his credit over 30 years of banking experience. He joined IDBI in 1983 and has held different portfolios in the Bank. He is at present Chief General Manager, Corporate Branch (LCB) of IDBI. He has also worked in Central Bank of India before joining IDBI. He is on the Board of Pratibha Syntex Limited.

 

Naushad Akhter Ansari (Whole Time Director)

 

Shri. Naushad Akhter Ansari is the Whole Time Director of subject. He is B.Sc. Engineering (Mechanical) from Aligarh Muslim University, Aligarh and has completed Management courses from Wharton School of Business, USA, and INSEAD, Singapore and from Indian School of Business, Hyderabad. He has experience of 36 years in steel industry. He joined the Company on 1st September, 2008 as an Executive Director - Patratu works and was later on transferred to Raigarh works. Prior to joining the Company he had worked with Tata Steel Limited, Jamshedpur for 34 years in various capacities.

 

Anand Goel (Joint Managing Director, Executive Director)

 

Mr. Anand Goel is Joint Managing Director, Executive Director of subject. He is MBA from BITS Pilani and has thirty six years of working experience in steel industry. He has served Jindal Strips Limited for 26 years in various managerial capacities. He was appointed on the Board of the Company on 9th May, 1998. He was appointed as a Wholetime Director of the Company w.e.f. 1st August, 2000 and was promoted to Deputy Managing Director from 1st August, 2006 and Joint Managing Director from 27th May, 2009. He is Director of Jindal Power Limited, Subansiri Hydro Electric Power Company Limited, Etalin Hydro Electric Power Company Limited, Attunli Hydro Electric Power Company Limited, Minerals Management Services (India) Private Limited, Gagan Power Limited, Power Plant Engineers Limited, Opelina Finance and Investment Limited, Shresht Mining and Metals Private Limited, Jindal Petroleum Limited, Jindal Synfuels Limited, Worth Overseas Limited, Jindal Minerals and Metals Africa Congo SPRL, Jindal Steel and Power (Mauritius) Limited, Jindal Mineral and Metals Africa Limited, Jindal Petroleum (Georgia) Limited, Jindal Petroleum (Mautitius) Limited, Enduring Overseas Limited and Synergy Infrastructure Private Limited (Nepal).

 

Ratan Jindal (Non-Executive Director)

 

Mr. Ratan Jindal is Non-Executive Director of subject. He is a commerce graduate and has attended the Advanced Management Programme at Wharton Business School, USA. He was appointed as Director of Jindal Strips Limited in 1979 and became its Managing Director in 1989. After restructuring of this company he became Vice Chairman and Managing Director of JSL Stainless Limited (formerly JSL Limited) in July, 2003. He has wide knowledge and working experience of steel industry. He is Director of Nalwa Farms Private Limited, Shalimar Paints Limited, Jindal Stainless Mauritius Limited, Sonabheel Tea Limited, Jindal Stainless, FZE, Jindal Industries Limited, OPJ Investments and Holdings Limited, Nalwa Financial Services Limited, JSL Group Holding Pte. Limited, JSL Ventures Pte. Limited, JSL Europe SA. He is on the Board of the International Stainless Steel Forum (“ISSF”), a forum established to focus on the development of stainless steel worldwide. He is currently the chairman of the Economics and Statistics Committee of the ISSF. He is a member of various national and international organisations, including the US based Young President’s Organisation, the CII, FICCI, the Punjab, Haryana and Delhi Chamber of Commerce and Industry, International Iron and Steel Institute, ISSDA and Nickel Development Institute. He is member of Board of Management of CCS Haryana Agriculture University.

 

Haigreve Khaitan (Non-Executive Independent Director)

 

Shri. Haigreve Khaitan serves as Non-Executive Independent Director of subject. He is a law graduate from Kolkata University and a member of Bar Council of West Bengal; Incorporated Law Society, Kolkata; International Bar Association, London; The Indian Council of Arbitration; The India Law Institute; The Bar Association of India and Young Entrepreneurs Association. He has experience in mergers and acquisitions, cross border transactions, project finance, takeovers, buy backs, foreign investments, joint ventures and foreign collaborations across various business sectors. He is practicing as an Advocate since 1995. He is also on Board of Ceat Limited, Dhunseri Tea and Industries Limited, Harrisons Malayalam Limited, Hindustan Composites Limited, Inox Leisure Limited, Rama Newsprint and Papers Limited, National Engineering Industries Limited, Sterlite Technologies Limited, TCPL Packaging Limited, Khaitan Consultants Limited, I.G.E. (India) Limited, Great Eastern Energy Corporation Limited, Bennett, Coleman and Co Limited, AVTEC Limited, Xpro India Limited, The Oudh Sugar Mills Limited, The Madras Aluminium Company Limited, BTS Investment Advisors Private Limited, Vinar System Private Limited, Millipore India Private Limited and a partner in Khaitan and Company. He is member of 8 committees in the above mentioned companies.

 

 

 

 

Sushil Kumar Maroo (Non-Executive Director)

 

Shri. Sushil Kumar Maroo serves as Non-Executive Director of subject. He is a chartered accountant and has over 24 years of working experience. Before joining the Company he has worked with Hindustan Lever Limited, Voltas Limited, RPG Dholpur Power Company Limited and Chambal Fertilizers and Chemicals Limited and possesses financial and managerial experience. He joined the Company in January 2001 as Vice President- Finance and was elevated to the position of Wholetime Director on 20.05.2004 and is currently working as Deputy Managing Director of Jindal Power Limited. He is also Director of Gagan Sponge Iron Limited, Jindal Power Transmission Limited, Jindal Power Distribution Limited, Jindal Hydro Power Limited, Nalwa Steel and Power Limited, Shresht Mining and Metals Private Limited, Uttam Vidyut Transmission Private Limited, Jindal Petroleum Limited, MMS Energy Limited, Gagan Power Limited, Jindal Coal To Liquid Limited, Power Plant Engineers Limited, Chhattisgarh Energy Trading Company Limited, Jindal Rex Exploration Private Limited, Jindal Minerals and Metals Africa Limited, Worth Overseas Limited, Jindal Petroleum (Mauritius) Limited, Jindal Petroleum (Georgia) Limited, Jindal Mining and Exploration Limited, Jindal Investment Holdings Limited and Jindal Africa Investments (Pty) Limited. He is member of 2 committees and chairman of 1 committee in the above mentioned companies.

 

Rahul Mehra (Non-Executive Independent Director)

 

Shri. Rahul Mehra serves as Non-Executive Independent Director of subject. He is a law graduate from Delhi University, is a member of Bar Council of Delhi and is practicing as an Advocate in Supreme Court and High Court, Delhi since 1998. He is on the panel of lawyers of Union of India for Supreme Court matters and also for the Ministry of External Aff airs, Government of India for extradition matters.

 

Ram Vinay Shahi (Non-Executive Independent Director and member of the Audit Committee of Directors)

 

Shri. Ram Vinay Shahi has been appointed as Non-Executive Independent Director and member of the Audit Committee of Directors of subject with effect from 15.10.2007.He is Post Graduate in Industrial Engineering and in Business Management and Graduate in Mechanical Engineering. He was Secretary, Ministry of Power, Government of India from April 2002 - January 2007. Prior to his appointment as Secretary, Ministry of Power, he was Chairman and Managing Director of BSES Limited from 1994 to 2002. He has also worked with NTPC for 16 years at various positions including member on the Board of Directors of NTPC. Prior to this, he worked with Hindustan Steel Limited and Steel Authority of India Limited for over 10 years. Presently he is Chairman (Executive) of Energy Infratech Private Limited, an Engineering and Project development company and Chairman of Advisory Group on Energy set up by Infrastructure Development Finance Company Limited (IDFC). He is Director on the Board of Global Heavy Electricals Limited, Asian Infrastructure Private Limited and Jindal Power Limited.

 

Hardip Singh Wirk (Non-Executive Independent Director)

 

Shri. Hardip Singh Wirk serves as Non-Executive Independent Director of subject. He is a law graduate from Delhi University and started his career in 1998 as a lawyer with Shri P. V. Kapur, Sr. Advocate and has handled various cases in Delhi High Court, Company Law Board, Consumer Forum and Supreme Court of India. Thereafter, he joined M/s Trilegal, a Corporate Law firm where he specialized in foreign investments, real estate and general corporate advice. In 2005 he started his independent practice specializing in foreign investment and real estate. He is also director in Mandira Wirk Design Private Limited.

PRESS RELEASES

 

Mr. Naveen Jindal conferred with Justice P.N. Bhagwati Award for his outstanding contribution to legal education

 

New Delhi, December 06, 2011: The Chancellor of O.P. Jindal Global University, Mr. Naveen Jindal has been conferred with the Justice P.N. Bhagwati Award in recognition of his outstanding contribution to legal education and corporate philanthropy.

 

Instituted by the Capital Foundation, this award  was presented by Dr. A.P.J. Abdul Kalam, former President of India, at a  function in New Delhi on Dec. 6th evening at which Supreme Court Judge, Mr.  Justice Altamas Kabir was also present.

 

Mr. Naveen Jindal is the Founding Chancellor of the O.P. Jindal Global University. He is a Member of Parliament, the Chairman and Managing Director of Jindal Steel and Power Limited (JSPL), and a sports enthusiast. The O.P. Jindal Global University has four schools: Jindal Global Law School (JGLS); Jindal Global Business School (JGBS); Jindal School of International Affairs (JSIA); and Jindal School of Government and Public Policy (JGSP).

 

The citation of the award notes that Mr.  Jindal’s contribution to legal education and higher education has been truly extraordinary. Commenting on this development, Professor Stephen P. Marks from the Harvard University and Member, Governing Body, O.P. Jindal Global University said, “Friends of India - and I certainly count myself among them—have lamented with enlightened Indians the gap between India's leadership in legislation and judicial review, on    the one hand, and the quality of legal education in India, on the other.  The best of India's young   jurists have reached the summits of legal education outside of India. However, this gap is   closing and one of the most outstanding agents of this change has been Mr. Naveen Jindal and   his funding of the Jindal Global Law School.  Mr. Naveen Jindal has seen the future and has    understood how a significant investment in legal education through JGLS will pay great   dividends for India and the world. Through this extraordinary and inspired act of corporate   philanthropy, Mr. Jindal threw down the gauntlet for other industrialists to make similar   philanthropic contribution to legal education. I hope they will.”

 

In his reaction, Professor Peter Schuck, Emeritus Professor of Law, Yale Law School and Chair, International Board of Advisors, Jindal Global Law School said, “Mr. Naveen Jindal is an institution builder and pioneering figure in the new India. The future generations who flourish through his generosity and vision will be his greatest legacy and gift to his country.”

 

In relation to the working of the Jindal Global Law School, the Bar Council of India’s Legal Education Committee observed:  “Having regard to the material as well as the inspection report, there is no manner of doubt that the Jindal Law School is maintaining standards and imparting legal education of high quality…”

 

In a recent report relating to higher education  in India entitled: “New Realities, New Possibilities: The Changing Face of  Indian Higher  Education” published by  Ernst and Young and FICCI, the Jindal Global   Law School (JGLS) of O.P. Jindal Global University (JGU) has been  recognised along with the Indian School of  Business (ISB), Hyderabad  as the only  two key institutions in India, which have been classified  as “Premium Higher Education Institutes”  (HEIs).

 

The Ernst and  Young-FICCI report has observed in relation to the recognition  of our institution that, “Premium HEIs have  evolved over the last  decade and are  comparable to the best in the world...offering their  students with the best of global standards in terms of  infrastructure,  curriculum, faculty,  systems and processes.” 

 

The other recipient of the Justice P.N. Bhagwati award was Dr. Arun Mohan, Senior Advocate, Supreme Court of India who was given the award in recognition of his outstanding contribution to access to justice.

 

Mr. Kapil Sibal, Union Minister for Human Resource Development and Communications and Information Technology and Mr.  Salman Khurshid, Union Minister for Law and Justice and Minority Affairs were conferred with the Justice V. R. Krishan Iyer Award at the same ceremony.

 

Delivering the Capital Foundation Annual Lecture  on the theme `Empowering three billion’, Dr. A.P.J. Abdul Kalam stressed the  need to address poverty, lack of education, ill health and other such  challenges in rural areas worldwide. In this connection, he called for new type of leaders to usher in global prosperity.

 

The Capital Foundation Society is a registered, non-governmental, non-profit, voluntary organisation which brings together persons of thought and learning to deliberate and articulate public opinion on vital issues. It promotes free flow of information and ideas from diverse sources to influence decision-making.

 

JSPL to invest Rs.200.000-250.000 Millions

Ranchi, December 27 -- Corporate major Jindal Steel and Power Limited (JSPL) will invest about Rs.200.000-250.000 Millions for developing and renovating the airstrip at Dumka and also set up a flying school over there. A Memorandum of Understanding in this regard was signed between the company and Jharkhand Government on Monday in presence of Chief Minister Arjun Munda and JSPL chairman and managing director Naveen Jindal.

As per the agreement the Government would hand over the present 4,000 feet long airstrip to JSPL for its development and maintenance at its own cost for the period of ten years, subject to renewal. The company would ensure the airworthiness of the strip within six months time and in the next two years the length and breadth of the runway, lighting facilities and other facilities would be installed.

The company would also build air traffic control building after the two years of extension of the airstrip and a hanger and administrative building would be also be constructed without any investment from the State Government. The Government in its part would pave way for developing the strip by facilitating various clearances involving Centre and various Departments of the State.

Speaking on the occasion, the Chief Minister said that the cooperation between the two parties would connect the second capital of the State from rest of the country and different parts of Jharkhand more easily. "Development of airstrip would also make night landing facility at Dumka. Under its CSR activity or otherwise the JSPL would enhance the length and its airworthiness. The capital of Santhal Pargana and the entire region apart from rail and road would now be connected through airways," he said.

He also added that the initiative would infuse better economic growth for the entire region as the process of connecting Giridih, Dumka, Deoghar and Rampur Haat by National Highway was on progress. The CM said the 1000 km of National Highway had been allocated to the State and a notification in this regard from the Center was due.

Naveen Jindal said that the strip would be elongated up to 6,000 ft for its commercial utilisation and hangers would also be developed at Dumka. "The airstrip was of 2,500 feet long during the Second World War and developed up to 4,000 feet in 2005. We will develop it to 6,000 feet and develop other facilities required for that. The company is committed for the State and wants to be partner in the growth path of Jharkhand. We are also coming up with 6,000 MT steel plant at Patratu and power plants at Dumka and Godda."

The airstrip can be used by the Government for its owned or hired aircrafts and helicopters free of cost whereas the company would collect charges from other private and commercial aircrafts at the Government approved rates.

Jindal visits Essar plant at Paradip

PARADIP, December 26 -- Managing Director of Jindal Steel and Power Limited (JSPL) and Member of Parliament Naveen Jindal on Monday came to the Paradip Port and visited Essar Steel Plant which is under construction.

Interacting with mediapersons, Jindal said the purpose of his visit to the Essar plant was to see the plant as the Jindal Steel and Power Limited is also establishing a 6-million-tonne-per-annum steel plant at Anugul in Odisha.

He expressed his satisfaction about the expeditious construction and utilistation of modern technology in the Essar plant with minimum environmental damaging effect.

Sources said the Jindal Steel and Power Limited is also contemplating to acquire a cargo berth of the Paradip Port Trust as a captive berth to handle exclusively the import and export cargo of the Jindal Steel and Power Limited at Paradip.

Expansion of Dumka airport to bring in new era of dev: CM

 

Ranchi, December 26 -- Chief Minister Arjun Munda today said the expansion of the Dumka airport will not only help in to usher a new era of development in the Santhal Pargana region but will also help boost up industrial development in the area. Speaking at the Memorandum of Understanding (MoU) signing ceremony between his government and Jindal Steel and Power Limited at the state hangar located at Birsa Munda Airport here, the chief minister said the development of air strip at Dumka will also fecilitate air traffic movement in the night. The state government welcomes all steps being taken by the industrial houses for the betterment of this state and it is only possible that by combined efforts Jharkhand can be brought in the league of developed states, Mr. Munda said. As per the MoU, the Jindal group will be responsible for developing the air strip and maintaing it for the next 10 years alongwith two years of maintance of the ATC building. The steel major will also be responsible for construction of the hangar at the airport. Deputy Chief Minister Hemant Soren was also present during the occasion.

 

CMT REPORT (Corruption, Money Laundering & Terrorism]

 

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

 

1]         INFORMATION ON DESIGNATED PARTY

No records exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

 

2]         Court Declaration :

No records exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

 

3]         Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

 

4]         Record on Financial Crime :

            Charges or conviction registered against subject:                                                              None

 

5]         Records on Violation of Anti-Corruption Laws :

            Charges or investigation registered against subject:                                                          None

 

6]         Records on Int’l Anti-Money Laundering Laws/Standards :

            Charges or investigation registered against subject:                                                          None

 

7]         Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

 

8]         Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

 

9]         Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

 

10]        Press Report :

            No press reports / filings exists on the subject.

 

 

CORPORATE GOVERNANCE

 

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

 

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

 

 

CONTRAVENTION

 

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.51.15

UK Pound

1

Rs.81.79

Euro

1

Rs.68.34

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

6

PAID-UP CAPITAL

1~10

7

OPERATING SCALE

1~10

7

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

8

--PROFITABILIRY

1~10

8

--LIQUIDITY

1~10

8

--LEVERAGE

1~10

7

--RESERVES

1~10

8

--CREDIT LINES

1~10

7

--MARGINS

-5~5

-

DEMERIT POINTS

 

 

--BANK CHARGES

YES/NO

YES

--LITIGATION

YES/NO

NO

--OTHER ADVERSE INFORMATION

YES/NO

NO

MERIT POINTS

 

 

--SOLE DISTRIBUTORSHIP

YES/NO

NO

--EXPORT ACTIVITIES

YES/NO

NO

--AFFILIATION

YES/NO

YES

--LISTED

YES/NO

YES

--OTHER MERIT FACTORS

YES/NO

YES

TOTAL

 

66

 

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

 

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

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

 

 

RATING EXPLANATIONS

 

 

RATING

STATUS

 

 

PROPOSED CREDIT LINE

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

 

Unlimited

71-85

Aa

Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums

 

Large

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

 

Fairly Large

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

 

Satisfactory

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

 

Small

11-25

Ca

Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity

 

Limited with full security

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

 

Credit not recommended

-

NB

                                       New Business

-

 

 

 

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

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