MIRA
INFORM REPORT
|
Report Date : |
01.08.2013 |
IDENTIFICATION DETAILS
|
Name : |
JSW STEEL LIMITED (w.e.f. 16.06.2005) |
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|
|
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Formerly Known
As : |
JINDAL VIJAYNAGAR STEEL LIMITED |
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Registered
Office : |
JSW Centre, Bandra Kurla Complex, Bandra (East), Mumbai-400051,
Maharashtra |
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Country : |
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Financials (as
on) : |
31.03.2013 |
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Date of
Incorporation : |
15.03.1994 |
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|
Com. Reg. No.: |
11-152925 |
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|
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Capital Investment
/ Paid-up Capital : |
Rs.5631.800
Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L27102MH1994PLC152925 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
MUMJ05285A / PNEJ05353F |
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PAN No.: [Permanent Account No.] |
AAACJ4323N / AACT4323N |
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Legal Form : |
A Public Limited
Liability Company. The Company's Shares are Listed on the Stock Exchanges |
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Line of Business
: |
Manufacturer and Seller of Iron and Steel Products. |
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|
|
|
No. of Employees
: |
9574
[Approximately] |
RATING & COMMENTS
|
MIRA’s Rating : |
A (60) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
56-70 |
A |
Financial & operational base are regarded healthy. General unfavourable
factors will not cause fatal effect. Satisfactory capability for payment of
interest and principal sums |
Fairly Large |
|
Maximum Credit Limit : |
USD 797000000 |
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|
|
|
Status : |
Excellent |
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|
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a well established and a reputed company having a fine
track record. The financial position of the company appears to be sound and healthy.
Directors are reported as well-experienced and knowledgeable businessmen. Trade relations are reported as trustworthy. Business is active.
Payment terms are reported as regular and as per commitment. The company can be considered good 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 – March 31st, 2013
|
Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
|
India |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very
High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CARE |
|
Rating |
A1+ [Commercial Paper] |
|
Rating Explanation |
Very strong degree of safety and lowest credit risk. |
|
Date |
14.06.2013 |
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/ Regional Office: |
JSW Centre, Bandra Kurla Complex, Bandra (East), Mumbai-400051,
Maharashtra |
|
Tel. No.: |
91-22-42861000 |
|
Fax No.: |
91-22-42863000 |
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E-Mail : |
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Website : |
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Corporate Office 1: |
Victoria House, 2nd Floor, Pandurang Budhkar Marg, Lower
Parel, Mumbai – 400013, Maharashtra, India |
|
Tel No. : |
91-22-24927000 / 43437800 |
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Email : |
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Corporate Office 2: |
The Enclave, Maratha
Udhog Bhavan, New Prabhadevi Road, Prabhadevi, |
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Tel No. : |
91-22-67838000 |
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Fax No. : |
91-22-24320740 |
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|
|
|
Factory 1 : |
Vijayanagar
Works P.O. Vidyanagar, Toranagallu Village, Sandur Taluk,
District Bellary- 583275, Karnataka, India |
|
Tel. No.: |
91-8395-250120 to 30 |
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Fax No.: |
91-8395-250138 / 250665 |
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|
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Factory 2 : |
Vasind
Works Shahapur Taluk, District Thane- 421604, Maharashtra, India |
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Tel. No.: |
91-2527-220022 to 025 |
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Fax No.: |
91-2527-220020 / 84 / 92 |
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|
|
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Factory 3 : |
Tarapur
Works MIDC Boisar, District Thane– 401506, Maharashtra, India |
|
Tel. No.: |
91-2525-270147 / 270149 |
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Fax No.: |
91-2525-270148 |
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|
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Factory 4 : |
Pottaneri, M. Kalipatti Village, Mecheri Post, Mettur
Taluk, District Salem- 636453, Tamilnadu, India |
|
Tel. No.: |
91-4298-278400 to 404 |
|
Fax No.: |
91-4298-278618 |
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Factory 5 : |
PO Vidyanagar,
Toranagallu, District Bellary – 583275, Karnataka, India |
|
Tel No.: |
91-8395-250120 to 30 |
|
Fax No.: |
91-8395-250138 / 250665 |
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Branch Office : |
Located At:
· Karnataka · Tamilnadu · Andhra Pradesh ·
·
· Madhya Pradesh |
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|
|
Additional Main Office : |
Located At: · Mumbai ·
· Rajasthan |
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|
|
|
Overseas Office : |
JSW Steel (USA) Inc. JSW Steel Service Centre
(UK) Limited |
DIRECTORS
AS ON 31.03.2013
|
Name : |
Mrs. Savitri Devi Jindal |
|
Designation : |
Chairperson |
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|
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|
Name : |
Mr. Sajjan Jindal |
|
Designation : |
Vice Chairman and Managing Director |
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|
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Name : |
Mr. Seshagiri Rao M.V.S. |
|
Designation : |
Joint Managing Director and Group Chief
Finance Officer |
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Date of Birth/Age : |
15.01.1958 |
|
Qualification : |
AICWA, LCS, CAIIB, Diploma in Business
Finance. |
|
Date of Appointment : |
06.04.1999 |
|
|
|
|
Name : |
Dr. Vinod Nowal |
|
Designation : |
Director and Chief Finance Officer |
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|
|
|
Name : |
Mr. Jayant Acharya |
|
Designation : |
Director (Commercial and Marketing) |
|
Date of Birth/Age : |
25.01.1963 |
|
Qualification : |
BE (Chemical), M. Sc (Physics), MBA
(Marketing). |
|
Date of Appointment : |
07.05.2009 |
|
|
|
|
Name : |
Mrs. Punita Kumar Sinha |
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Designation : |
Director |
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|
|
|
Name : |
Mr. Hiromu Oka |
|
Designation : |
Nominee Director of JFE Steel Corporation,
Japan |
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|
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|
Name : |
Mr. P.B. Ramamurthy |
|
Designation : |
Nominee Director of KSIIDC |
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|
Name : |
Mrs. Zarin Daruwala |
|
Designation : |
Nominee Director of ICICI Bank Limited |
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|
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|
Name : |
Dr. S K Gupta |
|
Designation : |
Director |
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|
Name : |
Mr. Anthony Paul Pedder |
|
Designation : |
Director |
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|
|
|
Name : |
Dr. Vijay Kelkar |
|
Designation : |
Director |
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|
|
|
Name : |
Mr. Uday M Chitale |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Sudipto Sarkar |
|
Designation : |
Director |
|
Date of Birth/Age : |
21.03.1946 |
|
Qualification : |
B.Sc. (Maths - Hons), BA (Law Tripos), LLM
(International Law), MA (Law) Barrister, Gray’s |
|
Date of Appointment : |
09.05.2005 |
|
|
|
|
Name : |
Mr. Kannan Vijayaraghavan |
|
Designation : |
Director |
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Date of Birth/Age : |
04.05.1959 |
|
Qualification : |
Fellow Member of the |
|
Date of Appointment : |
16.06.2008 |
KEY EXECUTIVES
|
Name : |
Lancy
Varghese |
|
Designation : |
Company
Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 30.06.2013
|
Category of Shareholder |
Total No. of Shares |
Total Shareholding as a % of Total No. of Shares |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
3997003 |
1.65 |
|
|
907952 |
0.38 |
|
|
76008304 |
31.44 |
|
|
80913259 |
33.47 |
|
|
|
|
|
|
5704612 |
2.36 |
|
|
5704612 |
2.36 |
|
Total shareholding of Promoter and Promoter Group (A) |
86617871 |
35.83 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
2337883 |
0.97 |
|
|
11172285 |
4.62 |
|
|
1237500 |
0.51 |
|
|
43485005 |
17.99 |
|
|
58232673 |
24.09 |
|
|
|
|
|
|
16078172 |
6.65 |
|
|
|
|
|
|
18156425 |
7.51 |
|
|
8193495 |
3.39 |
|
|
54443408 |
22.52 |
|
|
5344882 |
2.21 |
|
|
1205632 |
0.50 |
|
|
3345438 |
1.38 |
|
|
44547456 |
18.43 |
|
|
96871500 |
40.08 |
|
Total Public shareholding (B) |
155104173 |
64.17 |
|
Total (A)+(B) |
241722044 |
100.00 |
|
(C) Shares held by Custodians and against which Depository Receipts
have been issued |
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
Total (A)+(B)+(C) |
241722044 |
0.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer and Seller of Iron and Steel Products. |
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Products : |
|
PRODUCTION STATUS [AS ON 31.03.2013]
|
Particulars |
Unit |
Installed
Capacity |
Actual
Production |
|
MS Slabs |
Tonnes |
8300000 |
6541921 |
|
Hot Rolled Coils/Steel Plates/Sheets |
Tonnes |
8200000 |
6202129 |
|
Hot Rolled Steel Plates |
Tonnes |
320000 |
79308 |
|
Cold Rolled Coils/Sheets |
Tonnes |
1825000 |
1658906 |
|
Galvanised/Galvalum Coils/Sheets |
Tonnes |
925000 |
996530 |
|
Colour Coating Coils / Sheets |
Tonnes |
426000 |
188569 |
|
Steel Billets & Bloom |
Tonnes |
2500000 |
1977543 |
|
Long Rolled Products |
Tonnes |
2450000 |
1798173 |
NOTES:
1) As certified by
the management and accepted by auditors, being a technical matter.
2) Production of
Cold Rolled Coils/Sheets includes 59,483 tonnes (previous year 53,438 tonnes)
from a third party on a job work basis.
3) Production of
Galvanized/Galvalum Coils/Sheets includes 61,107 tonnes (previous year 55,734
tonnes) from a third party on a job work basis.
GENERAL INFORMATION
|
No. of Employees : |
9574
[Approximately] |
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Bankers : |
·
Allahabad Bank ·
Bank of Baroda ·
Bank of India ·
ICICI Bank Limited ·
IDBI Bank Limited ·
Indian Bank ·
Indian Overseas Bank ·
Punjab National Bank ·
State Bank of India ·
State Bank of Mysore ·
State Bank of Patiala ·
Union Bank of India ·
Vijaya Bank |
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Facilities : |
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|
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Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
Deloitte Haskins
and Sells Chartered
Accountants |
|
|
|
|
Associates/Subsidiaries : |
·
JSW Steel (Netherlands) B.V. ·
JSW Steel (UK) Limited ·
Argent Independent Steel (Holdings) Limited ·
JSW Steel Service Centre (UK) Limited ·
JSW Steel Holding (USA) Inc. ·
JSW Steel (USA) Inc. ·
Periama Holdings, LLC ·
Purest Energy, LLC ·
Meadow Creek Minerals, LLC ·
Hutchinson Minerals, LLC ·
R.C. Minerals, LLC ·
Keenan Minerals, LLC ·
Peace Leasing, LLC ·
Prime Coal, LLC ·
Planck Holdings, LLC ·
Rolling S Augering, LLC ·
Periama Handling, LLC ·
Lower Hutchinson Minerals, LLC ·
Caretta Minerals, LLC ·
JSW Panama Holdings Corporation ·
Inversiones Eroush Limitada ·
Santa Fe Mining ·
Santa Fe Puerto S.A. ·
JSW Natural Resources Limited ·
JSW Natural Resources Mozambique Limitada ·
JSW ADMS Carvo Lda ·
JSW Mali Resources SA (w.e.f. 18.02.2013) ·
JSW Steel Processing Centres Limited ·
JSW Bengal Steel Limited ·
JSW Natural Resources India Limited ·
Barbil Beneficiation Company Limited ·
JSW Jharkhand Steel Limited ·
JSW Building Systems Limited ·
JSW Steel East Africa Limited ·
Amba River Coke Limited ·
JSW Energy (Bengal) Limited ·
JSW Natural Resource Bengal Limited (w.e.f.
03.04.2012) ·
JSW Steel Coated Products Limited (w.e.f.
31.08.2012) ·
Jindal Praxair Oxygen Company Private Limited ·
JSW Ispat Steel Limited ·
JSW Energy (Bengal) Limited (upto 04.03.2012) |
|
|
|
|
Joint Venture : |
·
Vijayanagar Minerals Private Limited ·
Rohne Coal Company Private Limited ·
JSW Severfield Structures Limited ·
Gourangdih Coal Limited ·
Toshiba JSW Turbine and Generator Private Limited ·
MJSJ Coal Limited ·
GEO Steel LLC ·
JSW Structural Metal Decking Limited ·
JSW MI Steel Service Center Private Limited |
|
|
|
|
Other Related Parties : |
·
JSW Energy Limited ·
JSL Limited ·
JSW Realty and Infrastructure Private Limited ·
Jindal Saw Limited ·
Jindal Steel and Power Limited ·
JSOFT Solutions Limited ·
Jindal Industries Limited ·
Jindal Aluminum Limited ·
JSW Cement Limited ·
JSW Jaigarh Port Limited ·
Reynold Traders Private Limited ·
Raj West Power Limited ·
JSW Power Trading Company Limited ·
JSW Aluminim Limited ·
P Jindal Foundation ·
JSW Infrastructure Limited ·
South West Port Limited ·
JSW Techno Projects Management Limited ·
South West Mining Limited ·
JSL Architecture Limited ·
JSW Projects Limited ·
Sapphire Technologies Limited ·
Jindal Technologies and Management Services
Private Limited |
CAPITAL STRUCTURE
AS ON 31.03.2013
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
2000000000 |
Equity Shares |
Rs.10/- each |
Rs.20000.000 Millions |
|
1000000000 |
Preferences Shares |
Rs.10/- each |
Rs.10000.000 Millions |
|
|
TOTAL
|
|
Rs.30000.000
Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
223117200 |
Equity Shares |
Rs.10/- each
|
Rs.2231.200
Millions |
|
|
Equity Shares Forfeited (Amount Originally
Paid-Up) |
|
Rs.610.300
Millions |
|
279034907 |
10% Cumulative Redeemable Preferences Shares
Full Paid Up |
Rs.10/- each
|
Rs.2790.300
Millions |
|
|
TOTAL |
|
Rs.5631.800 Millions |
NOTES:
Rights, preferences and restrictions attached to
Equity shares:
The company has a
single class of equity shares. Each shareholder is eligible for one vote per
share held (other than the shares that were represented by underlying GDR’s
which did not carry a voting right) . The dividend proposed by the Board of
Directors is subject to the approval of the shareholders. In the event of
liquidation, the equity shareholders are eligible to receive the remaining
assets of the company after distribution of all preferential amounts, in
proportion to their shareholding. Nil (previous year 26,00,938) equity shares
represent the shares underlying outstanding Global Depository Receipts (GDRs).
Each GDR represents 1 underlying equity share. The GDRs have been converted to
equity shares during the year.
Rights, preferences and restrictions attached to
Preference shares:
The company has a
single class of preference shares. They are redeemable at par in four equal
‘quarterly installments commencing from 15 December 2017. The shares carry a
right to receive 10% dividend every year till redemption. In the event of
liquidation, the preference shareholders are eligible to receive the
outstanding amount after distribution of all other preferential amounts, in
proportion to their shareholding.
Shareholders
holding more than 5% shares in the company is set out below:
|
Particular |
No. of Shares |
% |
|
Equity
(excluding shares represented by underlying GDRs) |
|
|
|
JFE Steel International Europe B.V |
36068518 |
16.17 |
|
JFE Steel Corporation |
-- |
-- |
|
Jindal South West Holdings Limited |
17284923 |
7.75 |
|
JSW Energy Investments Private Limited |
13764364 |
6.17 |
|
|
|
|
|
Preference |
|
|
|
ICICI Bank Limited |
12707730 |
45.05 |
|
IDBI Bank Limited |
69734847 |
24.99 |
|
Life Insurance Corporation of India |
36348783 |
13.03 |
|
IFCI Limited |
21262362 |
7.62 |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES
OF FUNDS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
I.
EQUITY AND LIABILITIES |
|
|
|
|
(1)Shareholders' Funds |
|
|
|
|
(a) Share Capital |
5631.800 |
5631.800 |
5631.800 |
|
(b) Reserves & Surplus |
193741.900 |
179343.100 |
161327.100 |
|
(c) Money received
against share warrants |
0.000 |
0.000 |
5293.800 |
|
|
|
|
|
|
(2)
Share Application money pending allotment |
0.000 |
0.000 |
0.000 |
|
Total Shareholders’ Funds (1) + (2) |
199373.700 |
184974.900 |
172252.700 |
|
|
|
|
|
|
(3) Non-Current
Liabilities |
|
|
|
|
(a) long-term
borrowings |
154342.600 |
115280.900 |
88679.000 |
|
(b) Deferred tax liabilities (Net) |
34502.300 |
30120.900 |
23170.400 |
|
(c) Other long
term liabilities |
1940.600 |
827.200 |
4499.000 |
|
(d) long-term
provisions |
395.100 |
329.000 |
218.200 |
|
Total Non-current
Liabilities (3) |
191180.600 |
146558.000 |
116566.600 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a)
Short term borrowings |
11095.300 |
7741.300 |
18794.300 |
|
(b)
Trade payables |
92743.600 |
91844.500 |
60098.200 |
|
(c) Other
current liabilities |
48739.800 |
71825.200 |
44284.200 |
|
(d) Short-term
provisions |
3020.500 |
2269.200 |
3587.800 |
|
Total Current
Liabilities (4) |
155599.200 |
173680.200 |
126764.500 |
|
|
|
|
|
|
TOTAL |
546153.500 |
505213.100 |
415583.800 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a)
Fixed Assets |
|
|
|
|
(i)
Tangible assets |
276044.700 |
270716.900 |
210891.100 |
|
(ii)
Intangible Assets |
343.200 |
188.900 |
130.400 |
|
(iii)
Capital work-in-progress |
50339.700 |
24767.700 |
56899.400 |
|
(iv) Intangible assets under development |
405.700 |
270.400 |
181.200 |
|
(b) Non-current
Investments |
44956.100 |
42122.000 |
38318.100 |
|
(c) Deferred tax
assets (net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
30839.900 |
26514.400 |
19820.100 |
|
(e) Other
Non-current assets |
0.800 |
15.800 |
0.800 |
|
Total Non-Current
Assets |
402930.100 |
364596.100 |
326241.100 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a)
Current investments |
1404.500 |
2012.200 |
2670.000 |
|
(b)
Inventories |
47991.000 |
51790.800 |
41384.100 |
|
(c)
Trade receivables |
18622.000 |
12846.200 |
8386.500 |
|
(d) Cash
and cash equivalents |
14017.900 |
29560.200 |
18868.000 |
|
(e)
Short-term loans and advances |
61188.000 |
44407.600 |
18034.100 |
|
(f)
Other current assets |
0.000 |
0.000 |
0.000 |
|
Total
Current Assets |
143223.400 |
140617.000 |
89342.700 |
|
|
|
|
|
|
TOTAL |
546153.500 |
505213.100 |
415583.800 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
354918.100 |
321226.600 |
233671.100 |
|
|
|
Other Income |
2608.800 |
1793.000 |
2345.100 |
|
|
|
TOTAL (A) |
357526.900 |
323019.600 |
236016.200 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of materials consumed |
225903.700 |
209601.100 |
148030.900 |
|
|
|
Purchases of traded goods |
100.000 |
775.000 |
1822.300 |
|
|
|
Employee benefits expense |
6709.700 |
6258.700 |
5344.700 |
|
|
|
Other expenses |
60841.100 |
51261.900 |
37534.000 |
|
|
|
Exceptional Items |
3672.100 |
8209.600 |
0.000 |
|
|
|
Changes in
inventories of Finished goods, Work-in-progress and Stock-in-Trade |
(1724.600) |
(2978.100) |
(6829.800) |
|
|
|
TOTAL (B) |
295502.000 |
273128.200 |
185902.100 |
|
|
|
|
|
|
|
|
Less |
PROFIT
/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
62024.900 |
49891.400 |
50114.100 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
17244.800 |
11864.100 |
8541.700 |
|
|
|
|
|
|
|
|
|
|
PROFIT
/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
44780.100 |
38027.300 |
41572.400 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
19738.900 |
17081.700 |
13787.100 |
|
|
|
|
|
|
|
|
|
|
PROFIT / (LOSS)
BEFORE TAX (E-F) (G) |
25041.200 |
20945.600 |
27785.300 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
7029.000 |
4687.000 |
7678.600 |
|
|
|
|
|
|
|
|
|
|
PROFIT / (LOSS)
AFTER TAX (G-H) (I) |
18012.200 |
16258.600 |
20106.700 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
19873.000 |
27883.600 |
53277.800 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
1810.000 |
23250.000 |
42000.000 |
|
|
|
Dividend on Preferences Shares |
279.000 |
279.000 |
279.000 |
|
|
|
Proposed Final Dividend on Equity Shares |
2231.200 |
1673.400 |
2733.200 |
|
|
|
Corporate Dividend Tax |
426.600 |
316.800 |
488.700 |
|
|
|
Transfer From/To Debenture Redemption Reserve |
78.200 |
(1250.000) |
0.000 |
|
|
BALANCE CARRIED
TO THE B/S |
33060.200 |
19873.000 |
27883.600 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN FOREIGN
CURRENCY |
|
|
|
|
|
|
|
F.O.B. Value of Exports |
69693.500 |
53752.200 |
33282.500 |
|
|
|
Sale of Carbon Credits |
170.700 |
133.700 |
386.700 |
|
|
|
Interest Income |
1808.800 |
1078.300 |
457.600 |
|
|
TOTAL EARNINGS |
71673.000 |
54964.200 |
34126.800 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
104010.900 |
123970.500 |
87326.400 |
|
|
|
Stores & Spares |
4671.000 |
3723.900 |
2784.400 |
|
|
|
Capital Goods |
17213.900 |
9755.300 |
14829.900 |
|
|
TOTAL IMPORTS |
125895.800 |
137449.700 |
104940.700 |
|
|
|
|
|
|
|
|
|
|
Earnings /
(Loss) Per Share (Rs.) |
|
|
|
|
|
|
- Basic |
79.28 |
71.42 |
97.17 |
|
|
|
- Diluted |
79.28 |
71.42 |
96.33 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
PAT / Total Income |
(%) |
5.04
|
5.03 |
8.52
|
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
7.05
|
6.52 |
11.89
|
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
5.55
|
4.78 |
9.19
|
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.13
|
0.11 |
0.16
|
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
0.83
|
0.67 |
0.62
|
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
0.92
|
0.81 |
0.70
|
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 |
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 involved in |
-- |
|
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] |
PAN of Proprietor/Partner/Director, if available |
No |
|
32] |
Date
of Birth of Proprietor/Partner/Director, if available |
Yes |
|
33] |
Voter ID No of Proprietor/Partner/Director, if available |
No |
|
34] |
External Agency Rating, if available |
Yes |
INDEX OF CHARGES:
|
S. No. |
Charge ID |
Date of Charge
Creation/Modification |
Charge amount
secured |
Charge Holder |
Address |
Service Request
Number (SRN) |
|
1 |
10428403 |
03/05/2013 |
10,000,000,000.00 |
STATE BANK OF
INDIA |
CORPORATE
ACCOUNTS GROUP - MUMBAI, NEVILLE HOUSE,, |
B75979476 |
|
2 |
10423803 |
12/04/2013 |
10,000,000,000.00 |
IDBI TRUSTEESHIP
SERVICES LIMITED |
ASIAN BUILDING,
GROUND FLOOR, 17, R. KAMANI MARG, BALLARD ESTATE, MUMBAI - 400001,
MAHARASHTRA, INDIA |
B74391319 |
|
3 |
10362658 |
20/07/2012 * |
10,000,000,000.00 |
IDBI TRUSTEESHIP
SERVICES LIMITED |
ASIAN BUILDING, GROUND
FLOOR, 17, R. KAMANI MARG, BALLARD ESTATE, MUMBAI - 400001, MAHARASHTRA,
INDIA |
B44716967 |
|
4 |
10360372 |
26/02/2013 * |
37,460,000,000.00 |
SBICAP TRUSTEE
COMPANY LIMITED |
202, MAKER TOWER,
'E', CUFFE PARADE, COLABA,, MUMBAI - 400005, MAHARASHTRA, INDIA |
B70638770 |
|
5 |
10358176 |
31/05/2012 * |
8,910,000,000.00 |
SBICAP TRUSTEE
COMPANY LIMITED |
202, MAKER
TOWER, 'E', CUFFE PARADE, COLABA,, MUMBAI - 400005, MAHARASHTRA, INDIA |
B41688649 |
|
6 |
10343108 |
13/03/2012 |
37,600,000,000.00 |
SBICAP TRUSTEE
COMPANY LIMITED |
202, MAKER
TOWER, 'E', CUFFE PARADE, COLABA,, MUMBAI - 400005, MAHARASHTRA, INDIA |
B35431519 |
|
7 |
10298721 |
31/05/2012 * |
52,850,000,000.00 |
SBICAP TRUSTEE
COMPANY LIMITED |
202, MAKER
TOWER, 'E', CUFFE PARADE, COLABA,, MUMBAI - 400005, MAHARASHTRA, INDIA |
B41688144 |
|
8 |
10272434 |
23/12/2011 * |
9,000,000,000.00 |
IDBI TRUSTEESHIP
SERVICES LIMITED |
ASIAN BUILDING, GROUND
FLOOR, 17, R. KAMANI MARG, BALLARD ESTATE, MUMBAI - 400001, MAHARASHTRA,
INDIA |
B28534402 |
|
9 |
10233825 |
30/06/2010 |
340,970,000.00 |
State Bank of
India |
15 KING STREET,
EC2V 8EA, LONDON, - NA, UNITED K |
A91481903 |
|
10 |
10233501 |
25/06/2010 |
3,500,000,000.00 |
PUNJAB NATIONAL
BANK |
LARGE CORPORATE
BRANCH, MAKER TOWER, 'E',CUFFE |
A91267377 |
SCHEME OF
AMALGAMATION:
The Directors in
their meeting held on September 1, 2012, have considered and approved a
‘Composite Scheme of Arrangement and Amalgamation’ under Sections 391-394 of
the Companies Act, 1956 (the “Scheme”) amongst the Company, JSW ISPAT Steel
Limited (“JSW ISPAT”), JSW Building Systems Limited (“JSW Building”), JSW Steel
Coated Products Limited (“JSW Steel Coated”) (formerly known as Maharashtra
Sponge Iron Ltd.) and their respective shareholders and creditors relating to
the following matters (to be effected in the sequence set forth herein below),
with 1 July 2012 being the appointed date:
(a) Transfer of
the ‘Kalmeshwar’ undertaking of JSW ISPAT to JSW Steel Coated (an indirect
wholly owned subsidiary of the Company).
(b) Transfer of
the ‘Vasind’ and ‘Tarapur’ undertaking of the Company to JSW Steel Coated.
(c) Amalgamation
of JSW Building (a wholly owned subsidiary of the Company) with the Company.
(d) Amalgamation
of Residual JSW ISPAT with the Company, pursuant to which the shareholders of
JSW ISPAT will be entitled to shares of the Company as under:
(i) The equity
shareholders of JSW ISPAT will be entitled to 1 (One) fully paid-up equity
share of face value Rs. 10/- (Rupees Ten Only) each of the Company for every 72
(Seventy Two) fully paid up equity shares of Rs. 10/- (Rupees Ten Only) each of
JSW ISPAT held by them (“Share Exchange Ratio”); and
(ii) The
preference shareholders of JSW ISPAT will be entitled to 1 (One) fully paid up
non-convertible cumulative redeemable preference share of face value Rs. 10/-
(Rupees Ten Only) each of the Company for every 1 (One) fully paid up
non-convertible cumulative redeemable preference share of face value Rs. 10/-
(Rupees Ten Only) each of
JSW ISPAT held by them.
following
implementation of the Scheme and the issue of shares as above, the Company’s
aggregate equity capital would stand increased from Rs. 2231.172 Millions to
Rs. 2417.220 Millions consisting of 241.722 Millions equity shares of Rs. 10
each, subject to minor changes, if any, upon rounding off of fractional entitlements.
Besides, the Company’s aggregate preference capital would stand increased from
Rs. 2790.349 Millions to Rs. 7644.495 Millions comprising of 279.034 Millions -
10% cumulative redeemable preference shares of Rs. 10/- each and 485.414
Millions - 0.01% non-convertible cumulative redeemable preference shares of Rs.
10/- each, subject to minor changes, if any, upon rounding off of fractional
entitlements.
The Company’s
shareholding in JSW ISPAT will stand cancelled under the Scheme. Upon allotment
of the new shares, the shareholding of JFE Steel International Europe B.V, the
affiliate of the Company’s Foreign Collaborator, JFE Steel Corporation, Japan
will stand diluted to 14.92% of the equity share capital of the Company from
16.17%.
The said Scheme has
been approved by the requisite majority of shareholders on January 30, 2013 and
the Competition Commission of India (CCI) and has the No-objection of the
National Stock Exchange of India Limited and that of BSE Limited. On May 3,
2013 the Bombay High Court sanctioned the said Scheme with effect from July 1,
2012, being the appointed date. The certified copy of the Court Order is
awaited, on receipt of which the Company will initiate requisite formalities to
give effect to the Scheme. Accordingly, the accounting treatment laid out in
the Scheme and consequential adjustments that would arise will be dealt with by
the Company in the financial statements, once the Scheme is implemented.
FINANCIAL
HIGHLIGHTS:
STANDALONE
RESULTS:
The Company
produced 8.52 million tonnes of crude steel in FY 2012-13, up 15% over the
previous year. Its steel sales grew to 8.87 million tonnes, increased by 14%
year on year. The Company took several initiatives during the last financial
year viz; 2nd phase of Beneficiation plant, augmented in-bound and out-bound
logistics infrastructure to enhance flexibility in utilization of inputs and
dispatch of finished products, commissioning of 4th Stove of BF 3 and enhanced
product portfolio by completing 2nd phase of HSM II, increased capacities of
Colour coated products at Vasind and Tarapur Works and also achieved increased
sales volumes through its retail outlets ‘JSW Shoppe’. These initiatives helped
in achieving impressive growth of volume production and sales.
The Gross Turnover
and Net Turnover for the year was Rs. 387630.000 Millions and Rs. 353880.000
Millions respectively, showed a growth of 12% and 10% respectively. The
Operating EBITDA was Rs. 63090.000 Millions, showed a growth of 12% with an
improvement in EBIDTA margins to 17.8%. The net profit after tax was Rs.
18010.000 Millions showing a growth of 11%, after considering exceptional loss
of Rs. 3670.000 Millions, due to the significant movement and volatility in the
value of the rupee against US dollar. The net worth of the Company increased to
Rs. 199370.000 Millions as on March 31, 2013, from Rs. 184970.000 Millions as
on March 31, 2012. The Company’s net debt gearing was at 0.82 (compared to
0.69, as on March 31, 2012) and net debt to EBIDTA was at 2.59 (compared to 2.27,
as on March 31, 2012).
PROSPECTS:
Indian economy
witnessed one of its most challenging times during FY’13 with high inflation,
elevated interest rates, low industrial production, depreciating Indian Rupee
which adversely affected its external trade resulting in skewed trade and
fiscal deficits and subdued economic growth estimated at 5%. Country’s under
performance was partly due to the muted and uneven Global economic recovery in
2012 with World GDP slowing down to 3.2%.
Outlook for Global
economy is expected to progressively improve with more accommodative monetary
policies, improving fiscal stability and assuming absence of any adverse events
resulting in a gradual restoration of confidence during 2013 through 2014. In
accordance, IMF has projected World GDP to grow at 3.3% during 2013 and
increasing to 4% in 2014. Positive influence of Global economy coupled with
gaining prospects for proactive Reformatory Policy measures is expected to help
Indian economy recover with an estimated growth of 6-6.5% during FY’14. Current
account deficit is expected to witness a further reduction under a modest
recovery of exports, improved inflows and remittances assuming stability in Oil
/ Gold import basket.
Global Steel
sector witnessed a destocking during C.Y. 2012 influenced by growing economic
uncertainties coupled with a soft lending for Chinese economy – resulting in a
marginal growth of 1.2% each for Global steel production as well as demand.
During FY’13, Indian crude steel capacity increased by production increased by
5.4% to 78 million tonnes while domestic demand saw a growth of 3.3% to 73
million tonne. The demand was majorly affected by underperforming investment
growing @ 1.7%, depressed industrial growth at 1%, decelerating auto production
growing at 2% and Rupee witnessing a sharp depreciation of 14% putting further
pressure on margins.
World steel demand
is projected to witness an increment of 41 million tonnes moderately up by 2.9%
to 1454 million tonnes in C.Y. 2013 with China expected to grow by 3.5% to 669
million tonnes – contributing 46% to World steel demand. However, the large
“Effective Surplus” capacity of approximately 350 million tonne coupled with
almost stagnant domestic demand projected for major exporting economies
including Japan, Korea, Russia and Ukraine remains a major challenge for a
sustainable growth of Global steel industry.
In expectation of
a normal monsoon, the growing income of farm sector is expected to translate
into rising consumption. Further, accelerated approach to reformatory policy
initiatives with reducing subsidies, expanding FDI limits in Multiple-brand
retail, Insurance, Banking etc., proactive role of Cabinet Committee for
Investment for timely clearances of projects coupled with improving industrial
production and growing focus on Infrastructure development is expected to
witness a more sustainable economic development and growth with a moderate
inflation and declining deficits. At the back of a modest economic recovery
Indian Steel industry remains optimistically cautious with demand expected to
complement the country’s economic performance in FY’14. However, surging
imports at incentivized duty rates under the Free Trade Agreements with Korea
and Japan coupled with depreciating Indian Rupee remain major challenges for
the Indian steel industry.
PROJECTS AND
EXPANSION PLANS:
PROJECTS
COMMISSIONED DURING FY 2012-13:
VIJAYANAGAR WORKS:
- Revamped Corex 2
with added feature of Aerial Gas Distribution system (AGD) to increase its
capacity from 0.80 MTPA to 0.85 MTPA.
- Enhanced the hot
metal capacity in Blast Furnace II from current 1.3 MTPA to 1.4 MTPA by
distributing feed burden better and replacing top charging system with improved
design.
- Enhanced
capacity of HSM II by 1.5 MTPA from 3.5 MTPA to 5 MTPA.
- Completed second
phase of Beneficiation Plant, taking the capacity to 20 MTPA.
- Commenced dry
quenching of coke from the CDQ project commissioned by JSW Projects Ltd.
- Commissioned 60
tonnes per hour (tph) Blast Furnace gas-fired boiler to minimize flaring of
gases from furnaces.
SALEM WORKS:
- Commissioned 75
tph coke drying unit to reduce coke moisture, leading to substantial savings.
VASIND/TARAPUR
WORKS:
- Enhanced
capacity of colour coating line at Tarapur from 0.232 MTPA to 0.276 MTPA.
- Commissioned
state-of-the-art new colour coating line with capacity of 0.15 MTPA at Vasind.
- Commissioned a
new 300 KL per day capacity effluent treatment plant.
The benefits on
commissioning these projects during FY 2012-13 are expected to accrue during FY
2013-14.
PROJECTS UNDER
IMPLEMENTATION:
1) CAPACITY ENHANCEMENT PROJECTS
VIJAYANAGAR WORKS
a) Revamping and
enhancing capacity of Corex-1 from 0.80 MTPA to 0.85 MTPA.
b) Augmenting casting
capacity at steel melting shop No. 1 by adding 1,600 mm wide caster.
c) Augmenting
secondary steel melting capacity by adding one ladle heating furnace.
d) Installing
Nodulizer for better granulometry of low-grade iron ore in Sinter Plant No. 1, 2
and 3.
e) Increasing the
capacity of Blast Furnace-I from 0.9 MTPA to 1.8 MTPA.
f) Expected
commissioning 0.2 MTPA non-grain oriented electrical steel project in FY
2014-15.
SALEM WORKS
a) Installation of
Kocks block for reducing and sizing block capacity and quality of bar and rod
mill.
b) Automatic
inspection line for Blooming Mill, de-bundling, de-barring and second
straightener.
VASIND/TARAPUR WORKS
a) Appliance grade
Colour Coating Line with a capacity of 0.075 MTPA at Vasind
b) New Galvanising
Line with dual pot of Galvalume cum Galvanising line with capacity of 0.2 MTPA
at Tarapur.
c) Upgradation of
Cold Rolling Mill TM – I and II at Tarapur.
2) EFFICIENCY, PRODUCTIVITY IMPROVEMENT AND COST
REDUCTION INITIATIVES
VIJAYNAGAR WORKS
a) Installed waste
heat recovery system at Sinter Plant 2, 3 and 4.
b) Installed waste
heat recovery system at Blast Furnace 4.
c) Utilized
surplus gases within the plant to generate power and to achieve zero flaring of
gases.
d) Used BOF sludge
and fine dust fumes for micro pellet plant.
e) Used mill scale
generated from various mills for mill scale briquetting.
f) Installed
burner system in existing CPP 3 and 4 boiler for increasing the utilization of
waste gas.
SALEM WORKS
a) Installed 32
tph waste heat recovery boiler.
b) Commissioned
new wagon tippler to reduce demurrage and handling loss.
VASIND/TARAPUR WORKS
a) Converted LPG
heating system to natural gas system.
b) Commissioned railway siding at Vasind
3) OTHER PROJECTS
VIJAYANAGAR WORKS
CRM II 1st phase,
comprising 2.30 MTPA of pickling line, and Tandem Cold rolling Mill (PLTCM),
Continuous Annealing Line (CAL) of 0.95 MTPA and Continuous Galvanizing Line
(CGL) of 0.4 MTPA, is scheduled to be commissioned in the third quarter of
2013. Moreover, in Phase II, the second CAL line is expected to be commissioned
by December 31, 2014. The Company is also setting up a new melting shop with
1.5 MTPA capacity, comprising Electric Arc Furnace with a 1.5 MTPA billet
caster. This new melting shop, along with a new Bar Mill with a capacity of 1.2
MTPA, is scheduled to be commissioned in FY 2014- 15. This project will enable
the Company to produce 10 MTPA finished steel at Vijayanagar works.
SUBSIDIARY, JOINT VENTURE AND ASSOCIATE COMPANIES:
In the context of
globalizing Indian economy and the increase in the number of subsidiaries, the
Ministry of Corporate Affairs, vide its General Circular No. 2/2011 dated
08.02.2011 has granted General Exemption to all companies from attaching the
Balance Sheet, Profit and Loss Account and other documents of the subsidiary
companies to the Balance Sheet of the Company as required under Section 212(1)
of the Companies Act, 1956, subject to fulfillment of certain standard
conditions generally prescribed while giving specific approvals. The Company
will make available these documents/details upon request by any member or
investor of the Company/subsidiary companies. Further, the Annual Accounts of
the subsidiary companies will be kept open for inspection by any investor at
the registered office of the Company and also that of the subsidiary companies.
DETAILS OF MAJOR SUBSIDIARIES, JOINT VENTURE AND
ASSOCIATE COMPANIES ARE GIVEN BELOW:
1. JSW BENGAL STEEL LIMITED (JSW BENGAL), ITS
SUBSIDIARIES BARBIL BENEFICIATION COMPANY LIMITED, JSW NATURAL RESOURCES INDIA
LIMITED AND JSW ENERGY (BENGAL) LIMITED (JSWEBL)
JSW Bengal
progressed significantly towards setting up an integrated 10 MTPA-capacity
steel plant at Salboni, Paschim Medinipur District, West Bengal, in phases (Project).
As against the proposed first phase, approval has
been received from
Ministry of Environment and Forest (MOEF) and Pollution Control Board, for
setting up a 3 MTPA integrated steel plant and associated power plant. The
first phase also includes development of 2.4 MTPA Kulti- Sitarampur coal blocks
and 2.6 MTPA Ichapur coal block, through the Company’s wholly owned
subsidiaries.
2. JSW JHARKHAND STEEL LIMITED
JSW Jharkhand
Steel Limited was incorporated to set up a steel plant in the state of Jharkhand.
The company is pursuing various approvals/ clearances for raw material
linkages, land acquisition, environmental clearances, among others, for this
project.
3. JSW STEEL PROCESSING CENTRES LIMITED (JSWSPCL)
JSW Steel
Processing Centres Limited (JSWSPCL) is a 100% subsidiary of the Company.
JSWSPCL was set up as a Steel Service Centre, comprising of HR/CR Slitter and
cut-to-length facility, with an annual slitting capacity of 6,50,000 tonnes.
The Company processed 5,22,647 tonnes of steel during FY 2012-13, as compared
to 4,99,218 tonnes in the previous year.
4. AMBA RIVER COKE LIMITED (ARCL)
The Company has
acquired 100% holding in ARCL to set up 1 MTPA Coke oven to be supplied to JSW
ISPAT Steel Limited (JISL) under long-term take or pay contract with return on
equity of 25% to the Company. The Coke oven plant, is expected to be completed
in two phases commencing from March 2014. It is also in the process of setup a
4 MTPA Pellet Plant which is expected to be commissioned in FY 2014-15.
5. JSW STEEL COATED PRODUCTS LIMITED (JSW STEEL
COATED)
JSW Steel Coated
(formerly known as Maharashtra Sponge Iron Ltd.) was acquired by wholly owned
subsidiary of the company during the year. Upon the scheme referred to in para
4 of this report becoming effective, ‘Kalmeshwar’ undertaking of JSW ISPAT and
‘Vasind’ and ‘Tarapur’ undertaking of JSW Steel will be transferred to JSW
Steel Coated
B. OVERSEAS SUBSIDIARIES
1. JSW STEEL (NETHERLANDS) B.V. (JSW NETHERLANDS)
JSW Steel (Netherlands)
B.V. is a holding Company for subsidiaries based in USA, UK, Chile and East
Africa. It also has 49% equity holding of Georgia-based Geo Steel LLC,
incorporated under the laws of Georgia. The Company also invested in the US in
the plate and pipe mill and coal mining assets. Besides, it also invested in
iron ore mining concessions in Chile and fixed assets at the UK through the
following step-down subsidiaries.
(a) JSW Steel
Holding (USA) Inc. and its subsidiaries viz. JSW Steel (USA) Inc – Plate and
Pipe Mill Operation and Periama Holdings LLC and its subsidiaries – West
Virginia, USAbased Coal Mining Operation.
PLATE AND PIPE MILL OPERATION
During FY 2012-13,
the US plate and pipe mill’s performance continued to be impacted due to
challenging economic environment in USA, resulting in lower capacity
utilisation. For FY 2012-13, 339,165 net tonnes of plates and 84,874 net tones
of pipes were produced with capacity utilisation of 35% and 15%, respectively.
During FY 2014, the US operations are expected to progress in terms of
operational performance with enhanced capacity utilisation.
COAL MINING OPERATION
JSW Steel Holding
(USA) Inc. has 100% equity interest in coal mining concessions and integrated
rail and barge load out facility in West Virginia, USA. While some of the mines
are currently operational, statutory clearance/permits for other mines are in
advanced stage of approval.
(b) JSW Panama
Holdings Corporation and Chilean subsidiaries, namely Inversiones Eurosh
Limitada (IEL), Santa Fe Mining (SFM) and Santa Fe Puerto S.A (SFP)
During FY 2012-13,
contract mining activity with a capacity of 1 MTPA through dry process route
was undertaken. The Company received 12 shipments of iron ore concentrate,
aggregating to 0.94 million tonnes. Work on establishing a wet beneficiation
plant is currently being pursued and necessary statutory and environmental
approvals are awaited.
(c) JSW Steel East
Africa Limited (JSWSEAL)
JSWSEAL has rights
to explore manganese ore in Coast Province, Kenya, under Memorandum of
Understanding (MoU) with the Government of Kenya. The Company has completed
Phase-I exploration activities for identifying prospective area for manganese
ore in Coast Province, Kenya. The Phase-I final report is under preparation,
which will indicate the probable areas with the potential of manganese ore
occurrence. The Company is also identifying manganese bearing areas outside
Coastal Province to enhance its exploration portfolio in Kenya.
2. JSW NATURAL RESOURCES LIMITED (JSWNRL) AND ITS
SUBSIDIARIES JSW NATURAL RESOURCES MOZAMBIQUE LDA (JSWNRML), JSW ADMS CARVAO
LDA
JSW Natural
Resources Limited was incorporated in Mauritius to acquire coal assets/other
assets relating to the steel business. JSW Natural Resources Limited formed a
wholly owned subsidiary – JSW Natural Resources Mozambique Lda in Mozambique –
to acquire coal assets and engage in prospecting and exploring coal, iron ore
and manganese ore. JSW Natural Resources Mozambique Lda, along with its
subsidiary JSW ADMS Carvăo Lda, has a coal mining licences in Mutarara and
Zumbo District of Tete Province. The Company has carried out general
exploration activities for preliminary evaluation of the quantity and quality
of coal in this area. It has also initiated activities, like pre-feasibility
study, EIA report and others, which are necessary to apply for mining license.
A step-down
subsidiary of JSW Natural Resources Limited, Mauritius, has been incorporated in
Mali under the name of JSW Mali Resources SA. It aims to invest in and / or
acquire iron ore assets in the country through
Exploration Permits/Licenses.
C. JOINT VENTURE COMPANIES
1. GEO STEEL LLC
Georgia-based
Joint Venture, Geo Steel LLC, in which the Company holds 49% equity through JSW
Steel (Netherlands) B.V., set up a steel rolling mill in Georgia, with a
production capacity of 175,000 tonnes. Geo Steel produced 1,17,127 tonnes of
rebars and 1,40,780 tonnes of billets during 2012-13. The net turnover was USD
73.42 million.
2. ROHNE COAL COMPANY PRIVATE LIMITED
Rohne Coal Company
Pvt. Ltd. is a joint venture with three other partners. Forest clearance and
mining lease proposals are being pursued with government authorities. Jharkhand
State Pollution Control Board has accorded NOC for Consent to Establish. Prior
approval by Ministery of Coal has been received for Mining Lease and
Prospecting Lease.
3. MJSJ COAL LIMITED (MJSJ)
In terms of the
Joint Venture Agreement to develop Utkal-A and Gopal Prasad (West) thermal coal
block in Odisha, the Company, along with four other partners, agreed to
participate in the 11% equity of MJSJ Coal Limited, Odisha. The Government of
India decided to allot 1522 acres of Gopal Prasad west area to MJSJ. Mahanadi Coalfields
Limited, a Public Sector Company holds 60% of the Equity.
4. GOURANGDIH COAL LIMITED
Gourangdih Coal
Ltd (GCL) is a 50:50 Joint Venture between JSW Steel Limited and Himachal EMTA
Power Corporation Ltd (HEPL). It has been incorporated to develop and mine coal
from West Bengal’s Gourangdih, ABC thermal coal block. It is currently having
pre-mining activities. A mining plan was submitted to the government
authorities and is under consideration.
In November 2012,
the Ministry of Coal, Government of India, issued de-allocation letter citing
the recommendations of the Inter-Ministerial Group (IMG) of unsatisfactory
progress, both in development of coal mine and implementation of end-use
plants. The Ministry intimated its decision to de-allocate the Gourangdih ABC
coal block in the state of West Bengal from the joint allocates, i.e. HEPL and
JSW. It also aimed to forfeit 50% of Bank Guarantee amounting to Rs. 66.700
Millions. Further, the co-allocates shall not be eligible for allocation of any
alternative coal block in lieu of the de-allocated coal block.
Both the
co-allocatees (HEPL and JSW Steel) have filed separate legal proceedings
challenging the recommendation of the IMG. In the Writ Petition filed by JSW
Steel before Delhi High Court, the High Court passed an interim order that if
Ministry of Coal intends to encash the Bank Guarantee, three working days prior
notice shall be given to JSW Steel. Himachal EMTA filed a separate Writ
Petition before High Court of Himachal
Pradesh and
obtained stay of operation of the recommendation of IMG.
5. TOSHIBA JSW TURBINE AND GENERATOR PRIVATE
LIMITED
Toshiba JSW
Turbine and Generator Private Limited is a Joint Venture with a shareholding of
75% by Toshiba Corporation Limited, Japan, 22.46% by JSW Energy Limited and
2.54% by the Company. This Joint Venture aims to design, manufacture, market
and maintain services of mid to large-size supercritical steam turbines and
generators of size 500 MW to 1,000 MW.
The company has
commenced the production activity for supply of 3 X 800 MW Supercritical
Turbine and Generators sets for Kudgi Power plant, Karnataka and 2 X 660 MW
Supercritical Turbine sets for Meja Power Project, Uttar Pradesh, under the orders
recently received from National Thermal Power Corporation. The Company has
decided to expand the Manufacturing facility to enhance annual production
capacity from 3,000 MW to 6,000 MW and construction work for the same is under
progress.
6. VIJAYANAGAR MINERALS PRIVATE LIMITED (VMPL)
According to the
order of the Hon’ble Supreme Court to stop all mining operations in Bellary
District in Karnataka, activities from Thimmappanagudi Iron Ore Mines (TIOM)
operated by VMPL was halted since July 2011. VMPL operations and financial
results were affected due to the above reasons during FY 2012-13. TIOM mines
are classified under category A by the Central Empowered Committee (CEC).
7. JSW SEVERFIELD STRUCTURES LIMITED AND ITS
SUBSIDIARY JSW STRUCTURAL METAL DECKING LIMITED
JSW Sever field
Structures Limited (JSSL) is operating a structural steelwork facility to
design, fabricate and erect structural steelwork and ancillaries for
construction projects with a total capacity of 35,000 TPA at Bellary,
Karnataka. The Company has produced 36,067 tonnes during the year. Its order
book stood at Rs. 2280.000 Millions (21,751 tonnes), as on March 31, 2013. The
Company is implementing an expansion of its facility with estimated cost of Rs.
560.000 Millions to increase the production capacity from 35,000 TPA to 55,000
TPA which to be commissioned in FY 2013-14.
JSW Structural
Metal Decking Limited (JSWSMD), a subsidiary company of JSSL is engaged in the
business of designing, roll forming and installation of structural metal
decking and ancillaries. These include deals in shear connectors for
construction projects, with a total plant capacity of 10,000 TPA at Bellary,
Karnataka. The Company has orders of around 1,50,000 square meters, as on March
31, 2013.
8. JSW MI STEEL SERVICE CENTER PRIVATE LIMITED
(MISI JV)
JSW Steel and
Marubeni-Itochu Steel signed a Joint Venture Agreement on September 23, 2011,
to set up Steel Service Centres in India. The JV Company, JSW MI Steel Service
Center Pvt. Ltd., proposes to set up its Steel Service Centres in North India
(NCR) and in West India (Near Pune) with an initial installed capacity of 0.18
MTPA (Phase-I), which will subsequently be enhanced to 500,000 TPA. The project
is estimated to be completed within 12 months from the date of land
acquisition. The Service Centres will be equipped to process flat steel
products, such as hot rolled, cold rolled and coated products, to offer justin-
time solutions to the automotive, white goods, construction and other
value-added segments.
D. ASSOCIATE COMPANIES
1. JINDAL PRAXAIR OXYGEN COMPANY PRIVATE LIMITED
(JPOCL)
The oxygen plants
of JPOCL have been working satisfactorily with the primary aim to meet the
requirements of steel plant operations at Vijayanagar Works. During FY 2012-13,
the production of the oxygen plant of JPOCL was as follows: gaseous oxygen –
887 million Nm3; gaseous nitrogen – 302 million Nm3; Liquid oxygen – 40 million
Nm3; Liquid nitrogen – 24 million Nm3; and Argon – 11 million Nm3.
2. JSW ISPAT STEEL LIMITED (JISL)
Revenue (net) from
operations (standalone) for the financial year (9 months) ended 31st
March 2013 was Rs. 81130.000 Millions and EBIDTA was Rs. 7370.000 Millions .
After providing for finance cost and depreciation and considering other income
and exceptional items as well as deferred tax asset, net profit for the
financial year was Rs. 860.000 Millions, compared to net loss of Rs. 3170.000
Millions during the previous financial year (12 months) ended 30th June 2012.
Highest production
of Hot Metal and Sinter was recorded during the period. Production of Hot
Rolled Coils at Dolvi Unit was 1.95 MnT, registering a capacity utilization of
79%.
The auditors of
JISL have qualified recognition of net deferred tax assets of Rs. 23810.000
Millions as at 31st March 2013. In view of various measures undertaken by JISL
for enhancing operating efficiency, tie-up of reliable alternate sources of
power and critical inputs, setting-up of crucial projects aimed at achieving
raw material integration, major savings in input costs as well as future
profitability projections and the envisaged Composite Scheme of Amalgamation
and Arrangement, JISL is virtually certain that there would be sufficient
taxable income in future, to claim the tax credit. Company holds 46.75% stake
in JISL as on March 31, 2013. Company has not considered deferred tax assets
while recognizing its proportionate share of profit/ losses from JISL
AWARDS AND
ACCOLADES
THE COMPANY AND ITS EMPLOYEES RECEIVED THE
FOLLOWING AWARDS DURING THE YEAR:
1. Conferred the
Excellent Energy-efficient Unit award by CII at the 13th National Award for
Excellence in Energy Management 2012 on August 22 and 23, 2012 at HICC,
Hyderabad.
2. Awarded the CII-EXIM
Bank Award for Business Excellence in the category, Commendation Certificate
for Significant Achievement towards Business Excellence, for JSW Steel,
Vijayanagar Works on November 5, 2012, at Bangalore.
3. Conferred the
National Sustainability Award on November 16, 2012, when the Company emerged as
first among India’s Integrated Steel Plants by Indian Institute of Metals.
4. Awarded in the
Commendation Certificate in the Manufacturing Category of the IMC Ramkrishna
Bajaj National Quality Award 2012 by Indian Merchant Chambers on March 13,
2013.
5. Ranked fourth
among the best 34 operating steel plants globally according to the World Steel
Dynamics, World Class Steelmakers Ranking, on January 2013.
6. Emerged first
in the Best Fuel-efficient Boiler Category 2012 (JSW Steel, Captive Power Plant
-2. Toranagallu, Bellary) at the State Level Safety Competition on March 4,
2013, on the eve of 42nd National Safety Day Celebrations.
7. Received the
Business world – FICCI CSR recgonisation for 2011-12 for commendable work in
CSR.
MANAGEMENT DISCUSSION AND ANALYSIS
GLOBAL ECONOMY
·
The world witnessed a major economic slowdown in
2012 due to the uncertainties of fiscal imbalance in the AME’s coupled with
reduced trade and investments.
·
Signs of improvement in USA on account of falling
unemployment, growing savings and investments.
·
The Chinese economy witnessed a gradual cooling of
investments and industrial growth which were substituted by increasing consumer
spending.
·
Frequent Government stimulus and the depreciating
yen along with the fiscal consolidation in the EU are positive signs for the
global economy.
·
Lower commodity prices, falling inflation and
abundant liquidity are favourable for the EMEs.
·
Global trade volumes are projected to increase from
2.5% in 2012 to 3.6% in 2013.
·
Global GDP recovery is projected at 3.3% in 2013 as
against 3.2% in 2012.
·
Long term challenges – Fiscal Balancing for AME’s
coupled with improved monetary measures in part of EMEs.
The global economy
continues to face significant uncertainties. Anaemic rates of economic growth
in the developed world, coupled with slowdown in developing countries, pose
challenges to both policymakers and companies. Data from the International
Monetary Fund (IMF) shows that global GDP expanded at 3.2% in 2012, with
average growth rates of 1.3% and 5.1% in advanced and developing economies,
respectively. Global inflation was 3.9% in 2012 [Source: The World Bank].
In 2012, European
countries, such as France, Italy Portugal, Ireland, Greece and Spain, remained
afflicted with high levels of public debt and rising youth unemployment.
Political uncertainty surrounding the implementation of austerity measures,
such as debt restructuring and budgetary tightening, was opposed severely by
the citizens of these countries. Across the Atlantic, the US witnessed slow
economic recovery and a gradual creation of more private sector jobs. Japan
witnessed economic contraction for two consecutive quarters. The nation
recovered gradually from the devastating tsunami in the previous year, which
disrupted manufacturing supply-chains. However, the rising yen, a diplomatic
row with China and subdued global demand affected exports, which are crucial
for the nation’s economic stability.
Major developing countries, the beacons of rising prosperity over the
past few years, slowed down as well. Economic growth in China, India, Brazil
and South Korea decelerated due to a combination of domestic policies, which
hampered capital formation, and sluggish export demand. Despite the slowdown,
emerging markets expanded at a rate significantly higher than the developed
countries. This showed that the shift of economic power to emerging markets is
well and truly underway.
INDIAN ECONOMY
·
High inflation in addition to the global economic
slowdown were the major factors resulting in the monetary and fiscal imbalance
adversely impacting economic growth in FY 2012-13 estimated at 5%.
·
Capital accumulated in projects as past investment
has failed to yield commensurate output depressing economic growth.
·
Declining inflation combined with improving
liquidity and reducing benchmark rates are expected to gradually improve
domestic economic activities providing impetus to industrial production,
investments and consumer expenditure.
·
The Prime Minister’s Economic Advisory Council has
projected the GDP to grow at 6.4% during FY 2013-14. Fiscal deficit is expected
to be maintained at 4.8%, Current Account Deficit (CAD) at 4.7% and inflation
at 6%.
·
Reformative measures in the form of reducing fuel
subsidies with Direct Cash Transfer of subsidies, FDI in retail and growing
rural income through MGNREGA will also aid economic growth.
·
An improved monsoon with growing rural income could
provide the necessary support to improve economic prospects.
Headwinds in
developed nations and domestic supply bottlenecks affected India’s economic
growth in FY 2012-13. Moreover, RBI’s monetary tightening, especially the
successive hikes in repo rate, increased the cost of capital and lowered
business investment. As a result, the Indian economic output growth was
estimated at 5% in FY 2012-13, compared to 6.2% in the previous fiscal year.
FIXED ASSETS:
·
Freehold Land
·
Leasehold
Land
·
Building
·
Plant and
Machinery
·
Furniture And
Fixtures
·
Vehicles and
Aircrafts
·
Software
PRESS RELEASE:
JSW STEEL WINS PRESTIGIOUS PLATTS GLOBAL METALS AWARD
MUMBAI, 3 JUNE
2013: JSW Steel, the flagship company of $11 billion Indian conglomerate JSW
Group, has won the prestigious “The Industry Leadership Award” at Platts
Global Metals Awards, which recognizes achievements in steel, metals and
mining. The award ceremony was recently held in London.
Mr. Seshagiri Rao,
Joint MD, JSW Steel and Group CFO said, “It gives us immense pleasure to get this
prestigious global award. The company remains committed to the pursuit of
challenging targets, safety, environmental protection, transparency, openness
and social responsibility in every aspect of business around the world.”
Platts has ranked
the Industry Leadership Award category on five parameters – Financial Results,
Innovation, Product Quality, Safety and Strategic Vision. Under Financial
Results, it scanned Annual Report, Company Growth figures and projections,
Credit rating, Capital assets whereas in Innovation, it checked technology,
processes, cost effectiveness and sustainability. On Product Quality aspect, it
evaluated record of reliability based on low percentage of load rejections,
consistency of product specifications and in time delivery. On strategic
vision, Platts evaluated vision of company.
ABOUT JSW STEEL
JSW Steel Ltd.,
part of the O P Jindal Group, is one of the lowest cost steel producers in the
world. The group has diversified interest in mining, carbon steel, power,
industrial gases, and port facilities, Aluminium, Cement and Information
Technology. JSW Steel Limited is engaged in manufacture of flat and long
products viz. H R Coils, C R Coils, Galvanised products, Galvalume products,
auto grade/ white goods grade CRCA Steel, Bars and Rods. Incorporated in 1994,
it has grown to about US $11 billion in little over fifteen years. JSW Steel
Limited is one of the largest producers and exporters of coated flat products
in the country with presence in over 100 countries across five continents.
JSW
ENERGY PUTS EXPANSION ON HOLD; EYE ON ORGANIC GROWTH
JSW Energy, in its AGM on Thursday, said it has put expansion plans on hold due to the poor policy and regulatory environment. However, the company is scouting to acquire domestic assets under stress in order to strengthen its portfolio.
ALSO READ:
STERLITE'S Q1 NET DOWN 22% ON FINANCE COST, FOREX LOSS
Speaking to CNBC-TV18, Sajjan Jindal, MD, JSW Steel said, "After a year of awaiting clarity on policy and regulatory issues, the company has decided to consolidate its operations and has put most of its expansion plans on hold with exception of the Kutehr plant in Himachal Pradesh. The company will now focus on strengthening its balance-sheet.We plan to grow organically by reducing exposure to merchant capacities."
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No 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.61.12 |
|
|
1 |
Rs.92.97 |
|
Euro |
1 |
Rs.80.95 |
INFORMATION DETAILS
|
Report Prepared
by : |
TPT |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
7 |
|
--CREDIT LINES |
1~10 |
7 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
60 |
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a composite
of weighted scores obtained from each of the major sections of this report. The
assessed factors and their relative weights (as indicated through %) are as
follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest capability
for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
- |
NB |
New Business |
- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.