MIRA INFORM REPORT

 

 

Report Date :

12.10.2012

 

IDENTIFICATION DETAILS

 

Name :

JINDAL STEEL AND POWER LIMITED

 

 

Registered Office :

O.P. Jindal Marg, Hisar – 125 005, 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 Shares are Listed on the Stock Exchanges.

 

 

Line of Business :

Manufacturer of Sponge Iron, Mild Steel Slabs, Ferro Chrome, Iron Ore, Mild Steel
and Coal based Sponge Iron Plant.

 

 

No. of Employees :

15000 [Approximately]

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Aa (76)

 

RATING

STATUS

 

PROPOSED CREDIT LINE

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

 

 

Maximum Credit Limit :

USD 347500000

 

 

Status :

Excellent

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

Comments :

Subject is a part of Jindal Group. It is a well established and a reputed company having excellent track. Financial position of the company appears to be sound. Trade relations are reported as praiseworthy. Business is active. Payments are reported to be regular and as per commitments.

 

The company can be considered excellent 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 – 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

ICRA

Rating

A1 + [Short Term Debt Programme]

Rating Explanation

Very strong degree of safety and lowest credit risk.

Date

20.09.2012

 

 

Rating Agency Name

ICRA

Rating

AA [Term Loan]

Rating Explanation

High degree of safety and very low credit risk.

Date

20.09.2012

 

Rating Agency Name

ICRA

Rating

AA [Fund Based Limit]

Rating Explanation

High degree of safety and very low credit risk.

Date

20.09.2012

 

 

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.

 

 

LOCATIONS

 

Registered Office :

O.P. Jindal Marg, Hisar – 125 005, 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

tksadhu@jindalsteel.com

Website :

http://www.jindalsteelpower.com

Location :

Owned  (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 1 :

Karsia Road, Post Box No.16, Raigarh – 496 001, Chhattisgarh, India

Tel. No.:

91-7762-304300/ 227001-05

Fax No.:

91-7762-227022-23/ 227050

 

 

Factory 2 :

13 KM Stone, G.E. Road, Mandir Hasaud, Raipur – 492 001, Chhattisgarh, India 

Tel. No.:

91-771-2471205/ 07/ 3054600

Fax No.:

91-771-2471404/ 2471214/ 3054666

 

 

Factory 3 :

Jindal Nagar, Village Nisha, SH 63, Chhendipada Road, Angul – 759 111, Orissa, India

Tel. No.:

91-6761-254191/ 95

 

 

Factory 4 :

Balkudra, Patratu, District – Ramgarh – 829 143, Jharkhand, India

Tel. No.:

91-6553-275724/ 275726

Fax No.:

91-6553-275744

 

 

Factory 5 :

Iron Ore Pellet Plant, P O Box No. 86, Joda – Barbil Highway, Barbil, District – Keonjhar – 758 035, Orissa, India

Tel. No.:

91-6767-248817

Fax No.:

91-6767-248620

 

 

Factory 6 :

Jindal Open Cast Coal Mines, Village Dongamahua, P.O. Dhorabhatta (Tamnar), District Raigarh – 496 107, Chhattisgarh, India

Tel. No.:

91-7767-203538/ 203485

Fax No.:

91-7767-281611

 

 

Factory 7 :

TRB Iron Ore Mines, At P.O. Tensa, District Sundergarh – 770 042, Orissa, India

Tel. No.:

91-6625-236023/ 24

Fax No.:

91-6625-236022  

 

 

Marketing Office :

Located At:

 

·         Chennai

·         Jameshdpur

·         Bhopal

·         Bhubaneswar

·         Kolkata

·         Raipur

·         Mumbai

·         Hyderabad

·         Bangalore

·         Ahmedabad

 

 

Branch Offices :

Located At:

 

·         Ahmedabad

·         Bangalore

·         Bhubaneshwar

·         Hyderabad

·         Ranchi

·         Kolkata

 

 

Stock Yards :

Located At:

 

·         Ahmedabad

·         Bhopal

·         Chennai

·         Faridabad

·         Ghaziabad

·         Hyderabad

·         Kolkata

·         Ludhiana

·         Rahuri

·         Nagpur

·         Raipur

·         Cuttack

 

 

International Locations :

Located at:

 

·         Bolivia

·         China

·         Oman

·         South Africa

·         Indonesia

·         Madagascar

·         Mozambique

·         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 :

Mr. Sushil Maroo

Designation :

Director

 

 

Name :

Mr. Naushad A. Ansari

Designation :

Whole-time 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 :

Deputy 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 30.06.2012

 

Category of Shareholders

No. of Shares

Percentage of Holding

 

 

 

(A) Shareholding of Promoter and Promoter Group

 

 

(1) Indian

 

 

Individuals / Hindu Undivided Family

14,205,072

1.52

Bodies Corporate

464,485,550

49.69

Sub Total

478,690,622

51.21

 

 

 

(2) Foreign

 

 

Individuals (Non-Residents Individuals / Foreign Individuals)

574,400

0.06

Bodies Corporate

71,997,600

7.70

Sub Total

72,572,000

7.76

 

 

 

Total shareholding of Promoter and Promoter Group (A)

551,262,622

58.97

 

 

 

(B) Public Shareholding

 

 

(1) Institutions

 

 

Mutual Funds / UTI

26,390,864

2.82

Financial Institutions / Banks

632,914

0.07

Central Government / State Government(s)

8,660

-

Insurance Companies

40,938,026

4.38

Foreign Institutional Investors

195,649,199

20.93

Sub Total

263,619,663

28.20

 

 

 

(2) Non-Institutions

 

 

Bodies Corporate

36,305,741

3.88

 

 

 

Individuals

 

 

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

70,818,220

7.58

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

3,163,852

0.34

 

 

 

Any Others (Specify)

9,663,720

1.03

Trusts

316,181

0.03

Non Resident Indians

9,347,317

1.00

Foreign Nationals

222

-

Sub Total

119,951,533

12.83

 

 

 

Total Public shareholding (B)

383,571,196

41.03

 

 

 

Total (A)+(B)

934,833,818

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)

934,833,818

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturer of Sponge Iron, Mild Steel Slabs, Ferro Chrome, Iron Ore, Mild Steel
and Coal based Sponge Iron Plant.

 

 

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 LOAN

31.03.2011

[Rs. In Millions]

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 LOAN

31.03.2011

[Rs. In Millions]

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 – 110 065, India

 

 

Cost Auditors :

 

Name :

Ramanath Iyer and Company

Address :

BL- 4, (Paschmi) Shalimar Bagh, New Delhi – 110 088, India

 

 

Subsidiaries and Step-down Subsidiaries :

Subsidiaries

·         Jindal Minerals 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  Investments  LDA

·         Jindal  Investment Holdings Limited

·         Jindal Madagascar SARL

·         Jindal Minerals Mining 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

 

AS ON 29.09.2011

 

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

 

 

 

 

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

 

SOURCES OF FUNDS

 

31.03.2011

31.03.2010

31.03.2009

SHAREHOLDERS FUNDS

 

 

 

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

DEFERRED 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

31.03.2012

Type

1st Quarter

2nd Quarter

3rd Quarter

4th Quarter

Net Sales

25265.300

33338.100

32983.200

41740.200

Total Expenditure

15631.100

22471.000

23028.500

28647.600

PBIDT (Excl OI)

9634.200

10867.100

9954.700

13092.600

Other Income

166.500

77.200

202.200

1411.600

Operating Profit

9800.700

10944.300

10156.900

14504.200

Interest

1324.700

1458.700

1553.000

2490.300

Exceptional Items

0.000

(1477.500)

0.000

0.000

PBDT

8476.000

8008.100

8603.900

12013.900

Depreciation

2065.900

2139.200

2102.800

2364.000

Profit Before Tax

6410.100

5868.900

6501.100

9649.900

Tax

1708.500

1911.000

1890.400

1813.700

Provisions and contingencies

0.000

0.000

0.000

0.000

Profit After Tax

4701.600

3957.900

4610.700

7836.300

Extraordinary Items

0.000

0.000

0.000

0.000

Prior Period Expenses

0.000

0.000

0.000

0.000

Other Adjustments

0.000

0.000

0.000

0.000

Net Profit

4701.600

3957.900

4610.700

7836.300

 

 

 

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

 

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

No

8) No. of employees

Yes

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

--

23) Banking Details

Yes

24) Banking facility details

Yes

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

Yes

30) Major Shareholders, if available

No

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

No

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

 

 

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 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 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:

 

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, 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.

 

 

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 up-gradation 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.

 

 

STATEMENT OF STANDALONE UNAUDITED FINANCIAL RESULTS FOR THE FINANCIAL YEAR ENDED ON 30th JUNE, 2012

 

RS. IN MILLIONS

PARTICULARS

 

For the quarter ended on

For The Quarter Ended

Audited Financial Results for the year ended on

 

Standalone Un-audited Financial Results

 

Standalone

 

30.06.2012

31.03.2012

31.03.2012

 

1. a) Net Sales / Income from Operations

33118.200

41508.600

132706.700

b) Other Operating Income

192.700

231.600

632.800

Total Income

33341.1612

41740.200

133339.500

 

 

 

 

2. Expenditure

 

 

 

a) Cost of Materials Consumed

13038.800

13357.100

46106.100

b) Purchase of stock-in-trade

1105.000

1711.800

4527.500

c) Change in inventories of finished goods, work-in-progress and stock-in-trade

(4442.300)

2060.900

(3792.400)

d) Employee benefits expenses

1117.300

1182.500

3911.700

e) Depreciation and amortisation expenses

2371.700

2364.000

8671.900

f) Stores & Spares consumed

4125.000

4140.000

14571.700

g) Power & Fuel

2954.900

2772.600

9305.600

h) Other Expenditure

5035.000

3422.700

15148.000

Total

25305.400

31011.600

98450.000

 

 

 

 

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

8005.500

10728.600

34889.500

4. Other Income

122.000

141.600

1844.800

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

8127.500

12140.200

36734.300

6. Finance costs

2185.700

2490.300

6826.700

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

5941.800

9649.900

29907.600

8. Exceptional Items

5741.200

--

1477.500

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

200.600

9649.900

28430.100

10. Tax expense

76.400

1813.700

7323.600

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

124.200

7836.300

21106.500

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

--

--

--

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

124.200

7836.300

21106.500

14. Minority Interest

--

--

--

15. Share of Associates

--

--

--

16. Other Related Items

--

--

--

17. Net Profit / (Loss) after taxes, minority interest and shares of profit / (loss) of associates (13+14+15+16)

124.200

7836.300

21106.500

18. Cash Profit

2528.100

10564.300

31673.200

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

934.800

934.800

934.800

20. Reserves Excluding Revaluation Reserve

--

--

--

 

 

 

 

21. Earning Per Share

 

 

 

a) Basic and diluted EPS before extraordinary items

0.13

8.38

22.58

b) Basic and diluted EPS after extraordinary items

0.13

8.38

22.58

 

 

 

 

22. Public Shareholding

 

 

 

Number of Shares

383571196

384130196

384130196

Percentage of Shareholding

41.03

41.09

41.09

 

 

 

 

23. Promoters and Promoter group

 

 

 

a) Pledged/Encumbered

 

 

 

Number of shares

15846448

15806000

15806000

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

2.87

2.87

2.87

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

1.70

1.69

1.69

b) Non-encumbered

 

 

 

Number of shares

535416174

534897622

534897622

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

97.13

97.13

97.13

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

57.27

57.22

57.22

 

 

 

STANDALONE STATEMENT OF ASSETS AND LIABILITIES

 

RS. IN MILLIONS

Particulars

 

For The Quarter Ended on

Audited Financial Results for the year ended on

 

30.06.2012

 

31.03.2012

31.03.2012

 

Standalone Un-audited Financial Results

Standalone

1. Segment Revenue

 

 

 

a) Iron and Steel

30563.100

39914.100

127382.400

b) Power

5988.200

5252.000

16627.100

c) Others

859.100

607.700

2138.100

Sub Total

37410.400

45773.800

146147.700

 

 

 

 

Less: Inter-segment Revenue

4099.500

4033.700

12808.200

Net Sales/Income from Operations

33310.900

41740.200

133339.500

 

 

 

 

2. Segment Results

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

 

 

 

a) Iron and Steel

8212.800

10956.500

36654.400

b) Power

2126.500

2283.300

6053.100

c) Others

98.900

84.600

0.300

Sub Total

10438.200

13324.400

42707.700

Less : Interest and Other Financial Charges

2185.700

2490.300

6826.700

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

2310.700

1184.300

5973.400

Exceptional Items

5741.200

--

1477.500

Total Profit Before Tax

200.600

9649.900

28430.100

 

 

 

 

3. Capital Employed

(Segment Assets - Segment Liabilities)

 

 

 

a) Iron and Steel

95263.400

82835.800

82835.800

b) Power

45281.200

56131.200

56131.200

c) Others

5441.500

5387.500

5387.500

Total Segment Capital Employed

145986.100

144354.500

144354.500

 

 

NOTES:

 

1. 3rd Unit of 135 MW Power Plant at Angul, Odisha have been commissioned on 09.07.2012, with this total 7 unit are commissioned in series of 10 units of 135 MW. Balance 3 units are expected to be commissioned in the current financial year.

 

2. The company had made strategic business investment in Bolivia through its subsidiaries in Bolivia. In view of Non fulfillment of contractual obligation by the Government of Bolivia, Jindal steel Bolivia SA forced to terminated the EI Joint Venture Contract with the Government of Bolivia. Therefore, the  investment made by company in EI Mutun Joint Venture Projects and Other Operation have been impaired. As a matter of purchase, the company has made a provision of Rs.5741.200 Millions in the Quarter ended June 30, 2012.

 

3. The above unaudited results were reviewed by the Audit Committee and have been taken on record by the Board of Directors in their meeting held on 27.04. 2012.

 

4. The above Standalone results have been reviewed by auditors as per clause 41 of the listing agreement.

 

5. Previous quarter/period figures have been regrouped and reclassified to make them comparable.

 

 

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)

 

Mrs. 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)

 

Mr. 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)

 

Mr. 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)

 

Mr. 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)

 

Mr. 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)

 

Mr. 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)

 

Mr. 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)

 

Mr. 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)

 

Mr. 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)

 

Mr. 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 Mr. 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. RAVI UPPAL TO JOIN AS MD AND CEO OF JINDAL STEEL AND POWER LIMITED WITH EFFECT FROM OCTOBER 01, 2012

 

The Management of JSPL is pleased to announce the appointment of Mr. Ravi Uppal, as its MD and CEO with effect from Oct 1, 2012. An alumni of IIT Delhi and IIM Ahmedabad, Mr. Uppal has worked with companies like ABB, Volvo and recently Larsen and Toubro.

 

Mr. Uppal’s appointment is in line with Group’s continued effort to further strengthen and professionalize its management for achieving an accelerated growth and business excellence both in the domestic and international markets. Mr. Uppal brings with him more than 35 years of experience of working in engineering and infrastructural segments in India and abroad. He has successfully set up several new businesses and also turned around low performing units in the past. Mr. Ravi Uppal will report to the Group Chairman, Mr. Naveen Jindal.

 

The appointment of a business leader like Mr. Ravi Uppal who has an impressive record of achievements in diverse business domains. I am sure that his presence would give further impetus to our growth plans “said Mr. Naveen Jindal.

 

Jindal Steel and Power Limited (JSPL) a diversified conglomerate with interests in steel, power, mining and infrastructure with an annual turnover of over US $ 3.5 billion has been consistently tapping opportunities in the domestic as well overseas markets and has committed investments exceeding US$ 30 billion in the future.

 

A burning desire to contribute substantially to the nation’ long term prosperity, has prompted the group to carefully chart out plans in the steel, power and mining sectors. An enterprising spirit coupled with well thought through backward integration and an adaptive workforce of over 15000 strong, have been the pillars on which the entire strategy for the future rests. Mr. Uppal’ path has been well laid out and he is destined to lead the Group to its rightful place in the global firmament.

 

 

JINDAL STEEL AND POWER ACQUIRES CIC’S ENERGY ASSETS OF 6 BN TONNE COAL RESOURCES IN BOTSWANA

 

• JSPL’ss acquisition of CIC Energy is worth Rs 6000.000 Millions.

 

• The acquisition will give JSPL access to CIC’s high quality thermal coal resources in SE Botswana

 

• The Minister of Minerals, Energy and Water Resources of Botswana has already approved the change of control from CIC to JBVI.

 

New Delhi, September 05, 2012: Jindal BVI Limited (JBVI), a subsidiary of steel major Jindal Steel and Power Limited (JSPL) has acquired Canadian listed coal Company CIC Energy Corp. (CIC) for about US$115 million (over Rs 6000.000 Millions) by way of a merger of JBVI and CIC.

 

The Minister of Minerals, Energy and Water Resources of Botswana where CIC has its coal mines, has already approved the change of control from CIC to JBVI and all other approvals for the merger have already been granted and the merger certificate will be issued in the next few days marking the completion of the acquisition.

 

The deal will provide JSPL access to CIC’s high quality thermal coal in Greater Mmamabula coalfield in SE Botswana which is estimated to be in excess of 6 billion tonnes (approx) (including Measured and Indicated resource of 2.4bn Tonnes).

 

The deal will provide JSPL the opportunity to tap the highly lucrative and power deficient South African Development Community (SADC) countries and given the huge resource, will also provide an opportunity to set up a Coal to Hydrocarbons project.

 

Speaking on the occasions, JSPL’s Director and Group CFO, Mr. Sushil Maroo said, “This is another step in the direction of backward integration as the coal assets will give the company self-sufficiency when it comes to dependency on natural resources. This will enable JSPL in becoming a more self-reliant and fuel secure enterprise.”

 

Pursuant to the merger of JBVI and CIC, JBVI, being the surviving company, will make cash payment of C$ 2 per share to the current CIC shareholders aggregating to C$ 116 Mn approx. JBVI has already transferred the consideration amount to the depository for onward payment to CIC shareholders.

 

CIC has already been granted water allocation for the mining and power plants and has also received the environmental approvals for its power projects. CIC has done extensive drilling in its coalfields and has drilled approx. 2100 boreholes totaling about 186000 meters. CIC has already incurred development expenditure of C$ 246 Mn on the projects including the manpower costs and overheads.

 

The ROM coal quality has ash ranging from 23% to 42% and the Gross Calorific value ranges from 3700 to 5500. The total area of the mines is 315 sq km approx.

 

CIC is the frontrunner for building a 1200 MW power plant in Botswana for supply of power to South Africa.

 

JSPL, together with Jindal Power limited, has chalked out an ambitious target of having more than 25,000 MW electricity generation capacity by 2020 and in the long run, the deal would potentially provide the company a long-term source of coal.

 

JSPL already has acquired stakes in coal mines in South Africa, Mozambique, Australia and Indonesia.

 

ABOUT JINDAL STEEL AND POWER LIMITED (JSPL)

 

Jindal Steel and Power Limited (JSPL) is one of India’s major steel producers with a significant presence in sectors like Steel, Mining, Power Generation and Infrastructure. With an annual turnover of over US $3.5 billion, JSPL is a part of the over US $ 17 billion diversified O. P. Jindal Group. In the recent past, JSPL has expanded its steel, power and mining businesses to various parts of the world particularly in Asia, Africa and Australia.

 

The company produces economical and efficient steel and power. From the widest flat products to a whole range of long products, JSPL sports a product portfolio that caters to major infrastructure and housing projects in the country. It also has the distinction of producing the world’s longest 121 metre rails and large size parallel flange beams, high strength angle irons for transmission towers and high strength earthquake resistant construction rebars.

 

The organization is equally concerned about the environment and is committed towards restoring nature’s balance by maintaining a clean and green environment. JSPL’s Corporate Social Responsibility policy aims at bringing about a radical transformation in the quality of people in and around the operation areas of the company through positive intervention in social upliftment programs.

 

 

 

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]         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.53.07

UK Pound

1

Rs.84.95

Euro

1

Rs.68.23

 

 

INFORMATION DETAILS

 

Report Prepared by :

TPT


 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

6

PAID-UP CAPITAL

1~10

8

OPERATING SCALE

1~10

9

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

9

--PROFITABILIRY

1~10

9

--LIQUIDITY

1~10

9

--LEVERAGE

1~10

8

--RESERVES

1~10

9

--CREDIT LINES

1~10

9

--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

 

76

 

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.