MIRA INFORM REPORT

 

 

Report Date :

22.12.2012

 

IDENTIFICATION DETAILS

 

Name :

JSW PROJECTS LIMITED

 

 

Registered Office :

5A, Jindal Mansion, Dr. G. Deshmukh Marg, Mumbai – 400026, Maharashtra

 

 

Country :

India

 

 

Financials (as on) :

31.03.2011

 

 

Date of Incorporation :

21.08.2006

 

 

Com. Reg. No.:

11-163924

 

 

Capital Investment / Paid-up Capital :

Rs. 2750.000 millions

 

 

CIN No.:

[Company Identification No.]

U74999MH2006PLC163924

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

MUMJ12925D

 

 

PAN No.:

[Permanent Account No.]

AABCJ8131F

 

 

Legal Form :

Private Limited Liability Company

 

 

Line of Business :

Power Generation

 

 

No. of Employees :

Not Available

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba (43)

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

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

Satisfactory

 

Maximum Credit Limit :

USD 420000

 

 

Status :

Project under Implementation

 

 

Payment Behaviour :

Unknown

 

 

Litigation :

Clear

 

 

Comments :

Subject is a subsidiary of ‘JSW Investments Private Limited’. Even though the subject was incorporated during August 2006, it is yet to commence its commercial activities.

 

The project is under implementation stage and is scheduled to be commissioned by March 2013

 

The Net worth of the company appears to be strong and healthy.

 

Payment terms are unknown.

 

In view of strong holding company, the subject can be considered for 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 – June 30, 2012

 

Country Name

Previous Rating

(31.03.2012)

Current Rating

(30.06.2012)

India

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

INDIAN ECONOMIC OVERVIEW

 

India is developing into an open-market economy, yet traces of its past autarkic policies remain. Economic liberalization, including industrial deregulation, privatization of state-owned enterprises, and reduced controls on foreign trade and investment, began in the early 1990s and has served to accelerate the country's growth, which has averaged more than 7% per year since 1997. India's diverse economy encompasses traditional village farming, modern agriculture, handicrafts, a wide range of modern industries, and a multitude of services. Slightly more than half of the work force is in agriculture, but services are the major source of economic growth, accounting for more than half of India's output, with only one-third of its labor force. India has capitalized on its large educated English-speaking population to become a major exporter of information technology services and software workers. In 2010, the Indian economy rebounded robustly from the global financial crisis - in large part because of strong domestic demand - and growth exceeded 8% year-on-year in real terms. However, India's economic growth in 2011 slowed because of persistently high inflation and interest rates and little progress on economic reforms. High international crude prices have exacerbated the government's fuel subsidy expenditures contributing to a higher fiscal deficit, and a worsening current account deficit. Little economic reform took place in 2011 largely due to corruption scandals that have slowed legislative work. India's medium-term growth outlook is positive due to a young population and corresponding low dependency ratio, healthy savings and investment rates, and increasing integration into the global economy. India has many long-term challenges that it has not yet fully addressed, including widespread poverty, inadequate physical and social infrastructure, limited non-agricultural employment opportunities, scarce access to quality basic and higher education, and accommodating rural-to-urban migration.

Source : CIA

 

 

EXTERNAL AGENCY RATING

 

Rating Agency Name

CARE

Rating

BBB+ (Long term Bank facility)

Rating Explanation

Moderate degree of safety and moderate credit risk

Date

April 9, 2012

 

 

RBI DEFAULTERS’ LIST STATUS

 

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

 

 

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

 

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2012.

 

 

INFORMATION DECLINED

 

Management Non-Cooperative (Date: 20.12.2012)

 

 

LOCATIONS

 

Registered Office :

5A, Jindal Mansion, Dr. G. Deshmukh Marg, Mumbai – 400026, Maharashtra, India

Tel. No.:

91-22-43437674

Fax No.:

91-22-23534942

E-Mail :

naveen.rawat@jsw.in

Website:

www.jsw.in

 

 

DIRECTORS

 

As on 10.07.2012 

 

Name :

Balwant Ranka Kumar

Designation :

Director

Address :

B2, Kurgaon, Kundan, Panch Marg, Thane-401502, Maharashtra, India

Date of Birth/Age :

09.11.1966

Date of Appointment :

10.10.2008

DIN No.:

00672052

 

 

Name :

Sriram Kavassery Subbaram Narayanaswamy

Designation :

Director

Address :

Flat No.1, Padmalaya Intercity CHS, Plot No.5, Sector 16A, Vashi, Navi Mumbai - 400705, Maharashtra, India

Date of Birth/Age :

01.09.1969

Date of Appointment :

10.10/2008

DIN No.:

00023208

 

 

Name :

Kanwal Sarover

Designation :

Whole-time director

Address :

10 Bunglow, 10 JSW Township, Inspection Bunglow, Vidyanagar. Bellary-583275, Karnataka, India

Date of Birth/Age :

15.11.1953

Date of Appointment :

28.03.2011

DIN No.:

03498756

 

 

KEY EXECUTIVES

 

Name :

Mr. Naveen Kumar Rawat

Designation :

Secretary

Address :

A2, 603, Shri Dharmendra CHSL, Holyx Road, IC Colony, Borivali (West), Mumbai-400103, Maharashtra, India

Date of Birth/Age :

23.01.1982

Date of Appointment :

20.01.2011

PAN No.:

AGTPR0040C

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

As on 10.07.2012  

 

Names of Shareholders

 

No. of Shares

Sangita Jindal

 

49400

Kantilal N Patel

 

100

JSW Investments Private Limited, India

 

217050000

Sapphire Technologies Limited

 

100

Maharashtra Sponge Iron Limited, India

 

100

Ranka Balwantkumar

 

100

K.S.N. Sriram

 

100

Bhat Yashwant Deepak

 

100

Total

 

217100000

 

Allottee as on 27.08.2012

 

Names of Allottee

 

No. of Shares

JSW Investments Private Limited, India

 

1000000

Total

 

1000000

 

Allottee as on 29.08.2012

 

Names of Allottee

 

No. of Shares

JSW Investments Private Limited, India

 

2000000

Total

 

2000000

 

Allottee as on 06.09.2012

 

Names of Allottee

 

No. of Shares

JSW Investments Private Limited, India

 

5000000

Total

 

5000000

 

Allottee as on 21.09.2012

 

Names of Allottee

 

No. of Shares

JSW Investments Private Limited, India

 

10000000

Total

 

10000000

 

Allottee as on 01.10.2012

 

Names of Allottee

 

No. of Shares

JSW Investments Private Limited, India

 

1000000

Total

 

1000000

 

Allottee as on 15.10.2012

 

Names of Allottee

 

No. of Shares

JSW Investments Private Limited, India

 

4500000

Total

 

4500000

 

 

Allottee as on 23.11.2012

 

Names of Allottee

 

No. of Shares

JSW Investments Private Limited, India

 

2500000

Total

 

2500000

 

 

Equity Share Break up (Percentage of Total Equity)

 

As on 10.07.2012 

 

Category

Percentage

Bodies corporate

99.98

Others

0.02

Total

100.00

 

BUSINESS DETAILS

 

Line of Business :

Power Generation

 

 

GENERAL INFORMATION

 

No. of Employees :

Not Available

 

 

Bankers :

Not Available

 

 

 

 

 

Banking Relations :

--

 

 

Financial Institution:

Axis Trustee Services Limited

Axis House, 2nd Floor, Bombay Dyeing Mills Compound, Pandurang Budhkar Marg, Worli,, Mumbai - 400025, Maharashtra, India

 

 

Auditors :

 

Name :

Shah Gupta and Company

Chartered Accountants

Address :

38, Bombay Mutual Building, 2nd Floor, Dr. D.N Road, Fort, Mumbai -400001, Maharashtra, India

PAN No.:

AAAFS7702F

 

 

Holding Company:

  • JSW Investments Private Limited

CIN No.: U65993MH2005PTC152325

PAN No.: AAJCS2498G

 

 

Fellow Subsidiary :

  • JSW Aluminium Limited

CIN No.: U27203MH2005PLC154612

PAN No.: AABCJ5919R

 

  • JSW Energy Investments Private Limited

CIN No.: U65923MH2007PTC167960

PAN No.: AABCJ9185F

 

  • JSW Green Private Ltd.

CIN No.: U01117MH2007PTC216973

PAN No.: AADCT3544L

 

  • JSW Infrastructure Fintrade Private Limited

CIN No.: U45206MH2010PTC203280

PAN No.: AACCJ3550F

 

  • JSW Cement Limited

CIN No.: U26957MH2006PLC160839

PAN No.: AABCJ6731B

 

  • Sapphire Technologies Limited

CIN No.: U72900MH2000PLC129020

PAN No.: AAFCS6749C

 

  • South-West Mining Limited

CIN No.: U85110KA1996PLC021242

PAN No.: AAFCS9792M

 

 

Associates/Enterprises where control/significant influence exists :

  • JSW Steel Limited

CIN No.: L27102MH1994PLC152925

PAN No.: AAACJ4323N

 

  • JSoft Solutions Limited

CIN No.: U72200KA2006PLC040034

PAN No.: AABCJ7274P

 

 

CAPITAL STRUCTURE

 

As on 31.03.2011

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

250000000

Equity Shares

Rs.10/- each

Rs. 2400.000 Millions

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

10880000

Equity Shares

Rs.10/- each

Rs. 108.800 Millions

 

 

 

 

 

As on 10.07.2012

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

240000000

Equity Shares

Rs.10/- each

Rs. 2400.000 Millions

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

217100000

Equity Shares

Rs.10/- each

Rs. 2171.000 Millions

 

 

 

 

 

After 10.07.2012

 

Authorised Capital : Rs. 3000.000 millions

 

Issued, Subscribed & Paid-up Capital : Rs. 2750.000 millions

 

 


 

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

108.800

0.500

0.500

2] Share Application Money

0.000

0.000

0.000

3] Reserves & Surplus

0.000

0.000

0.000

4] (Accumulated Losses)

(2.111)

(0.065)

(0.053)

NETWORTH

106.689

0.435

0.447

LOAN FUNDS

 

 

 

1] Secured Loans

0.000

0.000

0.000

2] Unsecured Loans

0.000

0.000

0.000

TOTAL BORROWING

0.000

0.000

0.000

DEFERRED TAX LIABILITIES

0.000

0.000

0.000

 

 

 

 

TOTAL

106.689

0.435

0.447

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

0.000

0.000

0.000

Capital work-in-progress

4.440

0.000

0.000

Expenditure pending allocation, net

95.753

0.000

0.000

 

 

 

 

INVESTMENT

0.000

0.000

0.000

DEFERRED TAX ASSETS

0.000

0.000

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories

0.000

0.000

0.000

 

Sundry Debtors

0.000

0.000

0.000

 

Cash & Bank Balances

0.193

0.416

0.425

 

Other Current Assets

10.229

0.025

0.025

 

Loans & Advances

0.000

0.000

0.000

Total Current Assets

10.422

0.441

0.450

Less : CURRENT LIABILITIES & PROVISIONS

 

 

 

 

Sundry Creditors

4.735

0.006

0.003

 

Other Current Liabilities

0.191

0.000

0.000

 

Provisions

0.000

0.000

0.000

Total Current Liabilities

4.926

0.006

0.003

Net Current Assets

5.496

0.435

0.447

 

 

 

 

MISCELLANEOUS EXPENSES

0.000

0.000

0.000

 

 

 

 

TOTAL

105.689

0.435

0.447

 

 


PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2011

31.03.2010

31.03.2009

 

SALES

 

 

 

 

 

Income

0.000

0.000

0.000

 

 

Other Income

0.000

0.000

0.000

 

 

TOTAL                                    

0.000

0.000

0.000

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Administrative selling other expenses

2.045

0.012

0.022

 

 

TOTAL                                    

2.045

0.012

0.022

 

 

 

 

 

 

PROFIT BEFORE TAX             

(2.045)

(0.012)

(0.022)

 

 

 

 

 

Less

TAX                                                                 

0.000

0.000

0.000

 

 

 

 

 

 

PROFIT AFTER TAX                            

(2.045)

(0.012)

(0.022)

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

(0.065)

(0.053)

(0.031)

 

 

 

 

 

 

BALANCE CARRIED TO THE B/S

(2.110)

(0.065)

(0.053)

 

 

 

 

 

 

Earnings Per Share (Rs.)

(0.19)

(0.24)

(0.45)

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2011

31.03.2010

31.03.2009

Return on Total Assets

(PBT/Total Assets}

(%)

(19.62)

(2.72)

(4.89)

 

 

 

 

 

Return on Investment (ROI)

(PBT/Networth)

 

(0.02)

(0.03)

(0.05)

 

 

 

 

 

Debt Equity Ratio

(Total Liability/Networth)

 

0.05

0.01

0.01

 

 

 

 

 

Current Ratio

(Current Asset/Current Liability)

 

2.12

73.50

150.00

 

 

LOCAL AGENCY FURTHER INFORMATION

 

Sr. No.

Check List by Info Agents

Available in Report (Yes / No)

1]

Year of Establishment

Yes

2]

Locality of the firm

Yes

3]

Constitutions of the firm

Yes

4]

Premises details

No

5]

Type of Business

Yes

6]

Line of Business

Yes

7]

Promoter's background

Yes

8]

No. of employees

No

9]

Name of person contacted

No

10]

Designation of contact person

No

11]

Turnover of firm for last three years

Yes

12]

Profitability for last three years

Yes

13]

Reasons for variation <> 20%

-----

14]

Estimation for coming financial year

No

15]

Capital in the business

Yes

16]

Details of sister concerns

Yes

17]

Major suppliers

No

18]

Major customers

No

19]

Payments terms

No

20]

Export / Import details (if applicable)

No

21]

Market information

-----

22]

Litigations that the firm / promoter involved in

-----

23]

Banking Details

No

24]

Banking facility details

No

25]

Conduct of the banking account

-----

26]

Buyer visit details

-----

27]

Financials, if provided

Yes

28]

Incorporation details, if applicable

Yes

29]

Last accounts filed at ROC

No

30]

Major Shareholders, if available

Yes

31]

Date of Birth of Proprietor/Partner/Director, if available

Yes

32]

PAN of Proprietor/Partner/Director, if available

No

33]

Voter ID No of Proprietor/Partner/Director, if available

No

34]

External Agency Rating, if available

Yes

 

 

FINANCIAL RESULTS

 

The Company's project is under implementation stage and the commercial production has not yet commenced. During the year the Company has incurred the loss of Rs.2.045 millions.

 

 

NEW PROJECTS AND INITATIVES

 

The Company is implementing a CDQ Plant of 3.42 MTPA, DRI Plant of 1.2 MTPA and Captive Power Plant of 70MW at location adjacent to the integrated steel plant of JSW Steel Limited (JSWSL) at Vijaynagar, District Bellary in the state of Karnataka. Detailed Project Report has been prepared. The Company has commenced civil and mechanical activities at Vijaynagar site. The Company has also entered into an agreement with JSWSL for sub-lease of 9.49 acres of land.

 

The Project is scheduled to be commissioned by March 2013.The project cost is estimated to Rs. 24000.000 millions. The Company intends to finance the Project Cost by way of equity contribution of Rs. 6000.000 millions  and Rs.18000.000 millions by way of debt.

 

The Company has tied up for entire debt of Rs.18000.000 millions in October 2010 from ICICI Bank and is in the process of tying up equity contribution for the project.

 


 

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 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 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.55.09

UK Pound

1

Rs.89.54

Euro

1

Rs.72.77

 

 

INFORMATION DETAILS

 

Information Gathered by :

SVA

 

 

Report Prepared by :

MRI

 


 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

3

PAID-UP CAPITAL

1~10

6

OPERATING SCALE

1~10

4

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

6

--PROFITABILIRY

1~10

5

--LIQUIDITY

1~10

6

--LEVERAGE

1~10

5

--RESERVES

1~10

3

--CREDIT LINES

1~10

5

--MARGINS

-5~5

--

DEMERIT POINTS

 

 

--BANK CHARGES

YES/NO

NO

--LITIGATION

YES/NO

NO

--OTHER ADVERSE INFORMATION

YES/NO

NO

MERIT POINTS

 

 

--SOLE DISTRIBUTORSHIP

YES/NO

NO

--EXPORT ACTIVITIES

YES/NO

NO

--AFFILIATION

YES/NO

YES

--LISTED

YES/NO

NO

--OTHER MERIT FACTORS

YES/NO

YES

TOTAL

 

43

 

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.