1. Summary Information
|
|
|
Country |
India |
|
Company Name |
JINDAL STEEL AND POWER LIMITED |
Principal Name 1 |
Mrs. Savitri Jindal |
|
Status |
Excellent |
Principal Name 2 |
Mr. Naveen Jindal |
|
|
|
Registration # |
05-009913 |
|
Street Address |
O.P. Jindal Marg, Hisar – 125005, Haryana, India |
||
|
Established Date |
28.09.1979 |
SIC Code |
-- |
|
Telephone# |
91-1662-222471-75/
83/ 84 |
Business Style 1 |
Manufacturer |
|
Fax # |
91-1662-222476/
499 |
Business Style 2 |
|
|
Homepage |
Product Name 1 |
Sponge Iron |
|
|
# of employees |
15000 [Approximately] |
Product Name 2 |
Mild Steel Slabs |
|
Paid up capital |
934800000 of Rs.1 each |
Product Name 3 |
Ferro Chrome |
|
Shareholders |
Total shareholding of Promoter and Promoter Group - 59.02 % Public shareholding - 40.98% |
Banking |
State Bank of India |
|
Public Limited Corp. |
Yes |
Business Period |
34 Years |
|
IPO |
Yes |
International Ins. |
- |
|
Public |
Yes |
Rating |
Aa
(76) |
|
Related
Company |
|||
|
Relation
|
Country
|
Company
Name |
CEO |
|
Subsidiaries |
-- |
Jindal Power Limited |
-- |
|
Note |
- |
||
2. Summary
Financial Statement
|
Balance Sheet as of |
31.03.2012 |
(Unit: Indian Rs.) |
|
|
Assets |
Liabilities |
||
|
Current Assets |
70,470,300,000 |
Current Liabilities |
48,010,800,000 |
|
Inventories |
30,513,100,000 |
Long-term Liabilities |
143,724,600,000 |
|
Fixed Assets |
115,631,100,000 |
Other Liabilities |
35,391,600,000 |
|
Deferred Assets |
0,000 |
Total Liabilities |
227,127,000,000 |
|
Invest& other Assets |
118,966,600,000 |
Retained Earnings |
107,519,300,000 |
|
|
0 |
Net Worth |
108,454,100,000 |
|
Total Assets |
335,581,100,000 |
Total Liab. & Equity |
335,581,100,000 |
|
Total Assets (Previous Year) |
263,874,700,000 |
|
|
|
P/L Statement as of |
31.03.2012 |
(Unit: Indian Rs.) |
|
|
Sales |
133,339,500,000 |
Net Profit |
21,106,500,000 |
|
Sales(Previous yr) |
95,741,700,000 |
Net Profit(Prev.yr) |
20,641,200,000 |
MIRA
INFORM REPORT
|
Report Date : |
20.02.2013 |
IDENTIFICATION DETAILS
|
Name : |
JINDAL STEEL AND POWER LIMITED |
|
|
|
|
Registered
Office : |
O.P. Jindal Marg, Hisar – 125005, Haryana |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as
on) : |
31.03.2012 |
|
|
|
|
Date of Incorporation
: |
28.09.1979 |
|
|
|
|
Com. Reg. No.: |
05-009913 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs. 934.800 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, |
|
|
|
|
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 400000000 |
|
|
|
|
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 record. 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 – 125005, Haryana, India |
|
Tel. No.: |
91-1662-222471-75/
83/ 84 |
|
Fax No.: |
91-1662-222476/
499 |
|
E-Mail : |
|
|
Website : |
|
|
Location : |
Owned (Industrial Area) |
|
|
|
|
Corporate Office : |
Jindal Centre,
12, Bhikaiji Cama Place, New Delhi - 110066, India |
|
Tel. No.: |
91-11-26188340-50 |
|
Fax No.: |
91-11-26161271/
26170691 |
|
E-Mail : |
|
|
|
|
|
Factory 1 : |
Karsia Road, Post Box No.16, Raigarh – 496001, 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 – 492001, 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 – 759111, Orissa, India |
|
Tel. No.: |
91-6761-254191/
95 |
|
|
|
|
Factory 4 : |
Balkudra,
Patratu, District – Ramgarh – 829143, 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 –
758035, 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 –
496107, 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 – 770042, Orissa, India |
|
Tel. No.: |
91-6625-236023/
24 |
|
Fax No.: |
91-6625-236022 |
|
|
|
|
Marketing Office : |
Located At: ·
Chennai ·
Jameshdpur ·
·
·
Kolkata ·
·
Mumbai ·
·
·
Ahmedabad ·
Bangaluru |
|
|
|
|
Branch Offices : |
Located At: ·
Ahmedabad ·
·
Bhubaneshwar ·
·
·
Kolkata ·
Jamshedpur |
|
|
|
|
Stock Yards : |
Located At: ·
Ahmedabad ·
·
Chennai ·
·
·
·
Kolkata ·
·
Rahuri ·
·
·
|
|
|
|
|
International Locations : |
Located at: ·
·
China ·
·
·
·
Madagascar ·
·
Zimbabwe ·
Australia |
DIRECTORS
As on: 31.03.2012
|
Name : |
Mrs. Savitri Jindal |
|
Designation : |
Chairperson Emeritus |
|
|
|
|
Name : |
Mr. Naveen Jindal |
|
Designation : |
Chairman and Managing Director |
|
|
|
|
Name : |
Mr. Ratan Jindal |
|
Designation : |
Director |
|
|
|
|
Name : |
Ms. Shallu Jindal |
|
Designation : |
Additional Director |
|
|
|
|
Name : |
Mr. Vikrant Gujral |
|
Designation : |
Group Vice Chairman and Head Global Ventures |
|
|
|
|
Name : |
Mr. Anand Goel |
|
Designation : |
Joint Managing Director |
|
|
|
|
Name : |
Mr. Sushil Maroo |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. R.V. Shahi |
|
Designation : |
Director, Independent |
|
|
|
|
Name : |
Mr. Arun K. Purwar |
|
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 |
|
|
|
|
Name : |
Mr. Inderpal Singh Kalra |
|
Designation : |
Nominee Director - IDBI Bank Limited, Independent |
|
|
|
|
Name : |
Mr. M. L. Gupta |
|
Designation : |
Wholetime Director |
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. Rajeev
Bhadauria |
|
Designation : |
Director Group HR |
|
|
|
|
Name : |
Mr. B. S. Raman |
|
Designation : |
Director, Finance |
|
|
|
|
Name : |
Mr. Virendra
Kumar Mehta |
|
Designation : |
Director, Sales
Marketing |
|
|
|
|
Name : |
Mr. D. K. Saraogi |
|
Designation : |
Executive
President and Head, Jindal Shadeed |
|
|
|
|
Name : |
Mr. N. A. Ansari |
|
Designation : |
Director, Shadeed
Iron and Steel LLC, Oman |
SHAREHOLDING PATTERN
As on: 31.12.2012
|
Category of
Shareholder |
Number of Shares |
Percentage of Holding |
|
(A) Shareholding of
Promoter and Promoter Group |
|
|
|
|
|
|
|
|
14705072 |
1.57 |
|
|
464485550 |
49.69 |
|
|
479190622 |
51.26 |
|
|
|
|
|
|
575400 |
0.06 |
|
|
71997600 |
7.70 |
|
|
72573000 |
7.76 |
|
Total shareholding
of Promoter and Promoter Group (A) |
551763622 |
59.02 |
|
(B) Public
Shareholding |
|
|
|
|
|
|
|
|
17703078 |
1.89 |
|
|
369406 |
0.04 |
|
|
8660 |
0.00 |
|
|
37696096 |
4.03 |
|
|
213152852 |
22.80 |
|
|
268930092 |
28.77 |
|
|
|
|
|
|
32264517 |
3.45 |
|
|
|
|
|
|
69668891 |
7.45 |
|
|
2685560 |
0.29 |
|
|
9521136 |
1.02 |
|
|
351663 |
0.04 |
|
|
9169473 |
0.98 |
|
|
114140104 |
12.21 |
|
Total Public shareholding
(B) |
383070196 |
40.98 |
|
Total (A)+(B) |
934833818 |
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) |
934833818 |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer of Sponge Iron, Mild Steel Slabs, Ferro Chrome, |
||||||
|
|
|
||||||
|
Products : |
|
PRODUCTION STATUS (As on 31.03.2012)
|
Particulars |
Unit |
Installed Capacity |
|
At Raigarh |
|
|
|
Sponge Iron |
M.T. |
1370000 |
|
Mild Steel |
M.T. |
3000000 |
|
Ferro Alloys |
M.T. |
36000 |
|
Power |
M.W. |
893 |
|
Hot Metal/Pig Iron |
M.T |
1670000 |
|
Rail and Universal Beam Mill |
M.T |
750000 |
|
Plate Mill |
M.T |
1000000 |
|
Fabricated Structures |
M.T. |
120000 |
|
Cement Plany |
M.T |
500000 |
|
Medium and Light Section Mill |
M.T |
600000 |
|
At |
|
|
|
Machinery and
Castings |
M.T. |
11500 |
|
Ingots |
M.T. |
30000 |
|
CF Castings |
M.T. |
3000 |
|
AT Barbil |
|
|
|
Pelletization
Plant |
M.T |
4500000 |
|
At Satara ( |
|
|
|
Wind Energy |
MW |
24 |
|
At Patratu |
|
|
|
Wire Rod |
M.T. |
600000 |
|
Bar Mill |
M.T. |
1000000 |
|
At Angul |
|
|
|
Power |
MW |
270 |
|
Fabricated Structures |
M.T. |
40000 |
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. |
482496 |
|
H.C. Ferro Crome |
M.T. |
22663 |
|
Power |
KWH |
4668 |
|
Hot Metal/Pig Iron |
M.T |
1653060 |
|
Parallel Flange Beam / Columns |
M.T |
499619 |
|
Universal Plate / Coil |
M.T |
729493 |
|
Other Finished
Steel Products |
M.T. |
69618 |
|
Other Semi Steel
Products |
M.T. |
2276630 |
|
Machineries |
M.T. |
9060 |
|
Wire Rod |
M.T. |
250598 |
|
Bars |
M.T |
97145 |
|
Fabricated
Structures |
M.T. |
56284 |
|
Cement |
M.T |
308258 |
|
Medium and Light
Sections |
M.T |
185788 |
|
|
M.T. |
3736915 |
|
Wind Energy |
Million KW/H |
57 |
GENERAL INFORMATION
|
No. of Employees : |
15000 [Approximately] |
|||||||||||||||||||||||||||||||||||||||||||||
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|
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|
Bankers : |
·
State Bank of ·
Punjab National Bank ·
State Bank of ·
ICICI Bank Limited ·
Canara Bank ·
Industrial
Development Bank of ·
Export
- Import Bank of ·
Jammu
and Kashmir Bank Limited ·
Indian
Overseas Bank ·
Bank
of ·
Lord
Krishna Bank Limited |
|||||||||||||||||||||||||||||||||||||||||||||
|
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|
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|
Facilities : |
(Rs.
In Millions)
|
|||||||||||||||||||||||||||||||||||||||||||||
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
S.S. Kothari Metha and Company Chartered Accountants |
|
Address : |
145-149, Tribhuwan Complex, Ishwar Nagar, |
|
Tel. No.: |
91-11-46708888 |
|
Fax No.: |
91-11-66628889 |
|
E-Mail : |
|
|
|
|
|
Subsidiaries : |
·
Jindal Minerals and Metals Africa Limited (Cease
to exist as subsidiary w.e.f. 26.03.2012) ·
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 ·
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(Cease to exist as
subsidiary w.e.f. 26.03.2012) |
|
|
|
|
Subsidiaries of
Jindal Steel and Power (Mauritius) Limited : |
·
Affiliate Overseas Limited (Cease to exist as
subsidiary w.e.f. 28.10.2011) ·
Enduring Overseas Limited ·
Harmony Overseas Limited ·
Jindal Africa Investments (Pty) Limited ·
Jindal Brasil Mineracao SA ·
Jindal DRC SPRL(Cease to exist as subsidiary
w.e.f. 26.03.2012) ·
Jindal Investimentos LDA ·
Jindal Investment Holdings Limited ·
Jindal Madagascar SARL ·
Jindal Mining and Exploration Limited ·
Jindal Mining Industry LLC ·
Jindal Power LLC ·
Jindal Steel and Power (Australia) Pty Limited ·
Jindal Steel and Power Zimbabwe Limited ·
JSPL Mozambique Minerais LDA ·
Jubilant Overseas Limited ·
Jindal Zambia Limited ·
Jin Africa Limited ·
Jindal Tanzania Limited ·
Osho Madagascar SARL ·
PT Jindal Overseas ·
Rolling Hills Resources LLC ·
Shadeed Iron and Steel Co. LLC ·
Skyhigh Overseas Limited ·
Trans Atlantic Trading Limited ·
Vision Overseas Limited ·
Worth Overseas Limited |
|
|
|
|
Others : |
·
Belde E mpreendimentos Mineiros Limited, a
subsidiary of JSPL Mozambique Minerais LDA ·
Eastern Solid Fuels (Pty) Limited, a subsidiary
of Jindal Mining and E xploration Limited ·
Gas to Liquids International S.A., a subsidiary
of Worth Overseas Limited ·
Jindal Mining (Pty) Limited, a subsidiary of
Eastern Solid Fuels (Pty) Limited ·
Kasai Sud Diamant, a subsidiary of Jindal DRC
SPRL(Cease to exist as subsidiary w.e.f. 26.03.2012) |
|
|
|
|
Associates : |
·
Angul Sukinda Railway Limited ·
Nalwa Steel and Power Limited ·
FB Infra Private Limited (w.e.f. 17.01.2012) ·
Jindal Infosolutions Limited |
|
|
|
|
Joint Ventures : |
·
Jindal Synfuels 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 ·
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 ·
Nalwa Sons Investment Limited ·
Opelina Finance and Investment Limited ·
Trishakti Real Estate Infrastructure and
Developers Private Limited ·
Uttam Vidyut Transmission Private Limited ·
Yno Finvest Private Limited |
CAPITAL STRUCTURE
As on: 31.03.2012
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. 934.800
Millions |
|
|
|
|
|
Reconciliation of the
number of shares outstanding at the beginning and at the end of the reporting
period:
|
Particulars |
Number of Shares |
|
Equity Shares outstanding at the beginning of the year |
934269031 |
|
Add: Equity Shares issued under employees stock option scheme |
564787 |
|
Equity Shares outstanding at the close of the year |
934833818 |
Terms/rights attached
to equity shares
The Company has only one class of equity shares having par value of Rs.1 per share. E ach holder of equity share is entitled to one vote per share. The Company declares dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the Shareholders in the ensuing Annual General Meeting.
During the year ended 31st March, 2012, the amount of per share dividend recognized as distributions to equity shareholders was Rs. 1.60.
In the event of liquidation of the Company, the holders of equity shares will be entitled to receive assets of the Company. The distribution will be in proportion to the number of equity shares held by the shareholders.
Aggregate number of
bonus shares issued, shares issued for consideration other than cash and shares
bought back during the period of five years immediately preceding the reporting
date:
|
Particulars |
Number of Shares |
|
Equity shares allotted as fully paid bonus shares by capitalization of securities premium reserve |
- |
|
Equity shares allotted as fully paid-up pursuant to contracts for consideration other than cash |
- |
|
Equity shares bought back by the Company |
- |
The Company has allotted total 775,651,530 fully paid equity shares upto the year ended 31st March, 2012 as fully paid bonus shares by capitalizing securities premium reserve.
In addition the
Company has allotted the following equity shares during the preceding five
years under its various Employees Stock option schemes
|
During the year
ended |
Number of Shares |
|
31st March, 2012 |
564787 |
|
31st March, 2011 |
3034949 |
|
31st March, 2010 |
929869 |
|
31st March, 2009 |
691343 |
|
31st March, 2008 |
- |
|
Total |
5220948 |
Details of shareholders
holding more than 5% shares in the Company
|
Name of the
shareholder |
No. of Shares |
% holding |
|
Equity Shares of
Re. 1 each fully paid |
|
|
|
Gagan Infraenergy Limited |
66954060 |
7.16 |
|
Opelina Finance and Investment Limited |
79838960 |
8.54 |
|
Sun Investment Limited |
86978940 |
9.30 |
As per of the Company, including its register of shareholders/members and other declarations received from shareholders regarding beneficial interest, the above shareholding represents both legal and beneficial ownerships of shares
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
934.800 |
934.300 |
931.200 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
107519.300 |
85959.100 |
66305.400 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
108454.100 |
86893.400 |
67236.600 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
68480.900 |
50850.100 |
42351.600 |
|
|
2] Unsecured Loans |
75243.700 |
63566.900 |
41481.000 |
|
|
TOTAL BORROWING |
143724.600 |
114417.000 |
83832.600 |
|
|
Employee’s Stock Options
outstanding |
0.000 |
0.000 |
226.700 |
|
|
Less : Deferred
employee compensation expenditure |
0.000 |
0.000 |
(3.300) |
|
|
DEFERRED TAX LIABILITIES |
10678.100 |
8783.300 |
7150.000 |
|
|
|
|
|
|
|
|
TOTAL |
262856.800 |
210093.700 |
158442.600 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
115631.100 |
100036.100 |
67040.600 |
|
|
Capital work-in-progress |
104798.600 |
70778.700 |
64352.800 |
|
|
|
|
|
|
|
|
INVESTMENT |
14121.700 |
12100.100 |
10671.100 |
|
|
DEFERRED TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
OTHER NON CURRENT ASSETS |
46.300 |
60.300 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
30513.100 |
22041.200 |
13285.000 |
|
|
Sundry Debtors |
9050.600 |
7371.200 |
6223.600 |
|
|
Cash & Bank Balances |
309.400 |
437.100 |
601.000 |
|
|
Other Current Assets |
3076.400 |
3198.700 |
0.000 |
|
|
Loans & Advances |
58033.900 |
47851.300 |
38659.400 |
|
100983.400 |
80899.500 |
58769.000 |
||
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
9983.100 |
7090.000 |
22117.100 |
|
|
Other Current Liabilities |
38027.700 |
27727.600 |
6866.900 |
|
|
Provisions |
24713.500 |
18963.400 |
13437.100 |
|
Total
Current Liabilities |
72724.300 |
53781.000 |
42421.100 |
|
|
Net Current Assets |
28259.100 |
27118.500 |
16347.900 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
30.200 |
|
|
|
|
|
|
|
|
TOTAL |
262856.800 |
210093.700 |
158442.600 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
|
|
SALES |
|
|
|
|
|
|
|
Revenue from operation |
133339.500 |
95741.700 |
73675.900 |
|
|
|
Other Income |
1844.800 |
1431.600 |
1173.100 |
|
|
|
TOTAL (A) |
135184.300 |
97173.300 |
74849.000 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of materials consumed |
45298.400 |
27303.500 |
|
|
|
|
Purchase of stock-in-trade |
4527.500 |
1768.000 |
|
|
|
|
Changes in inventories of finished goods, work-in-process and stock-in-trade |
(3792.400) |
(3334.500) |
|
|
|
|
Employee benefits expense |
3854.400 |
2777.800 |
|
|
|
|
Other expenses |
42826.700 |
31401.400 |
|
|
|
|
TOTAL (B) |
92714.600 |
59916.200 |
48727.700 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
42469.700 |
37257.100 |
26121.300 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
5367.700 |
2850.000 |
1924.700 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
37102.000 |
34407.100 |
24196.600 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
8671.900 |
6877.700 |
5121.600 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
28430.100 |
27529.400 |
19075.000 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
7323.600 |
6888.200 |
4278.200 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H)
(I) |
21106.500 |
20641.200 |
14796.800 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
51248.900 |
54788.300 |
43189.500 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Final Dividend |
1494.600 |
1401.900 |
1165.200 |
|
|
|
Corporate tax on Dividend |
31.500 |
37.500 |
42.800 |
|
|
|
General Reserve |
2200.000 |
2100.000 |
1500.000 |
|
|
|
Debenture Redemption Reserve |
0.000 |
0.000 |
490.000 |
|
|
BALANCE
CARRIED TO THE B/S |
47522.800 |
51248.900 |
54788.300 |
|
|
|
|
|
|
|
|
|
|
FOB Value of
Export Sales |
14288.400 |
10736.100 |
4104.100 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
29521.800 |
18715.700 |
1129.400 |
|
|
|
Components & Spares Parts |
1719.800 |
1969.600 |
1998.100 |
|
|
|
Capital Goods and Others |
8652.200 |
12629.400 |
18132.400 |
|
|
TOTAL IMPORTS |
39893.800 |
33314.700 |
21259.900 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
|
|
|
|
|
|
Basic |
22.58 |
21.11 |
15.90 |
|
|
|
Diluted |
22.58 |
22.09 |
15.78 |
|
QUARTERLY RESULTS
|
Particular |
|
30.06.2012 |
30.09.2012 |
|
Type |
|
1st Quarter |
2nd Quarter |
|
Net Sales |
|
33310.900 |
35889.700 |
|
Total Expenditure |
|
22933.700 |
23283.200 |
|
PBIDT (Excl OI) |
|
10377.200 |
12606.500 |
|
Other Income |
|
122.000 |
74.100 |
|
Operating Profit |
|
10499.200 |
12680.600 |
|
Interest |
|
2185.700 |
1778.900 |
|
Exceptional Items |
|
(5741.200) |
0.000 |
|
PBDT |
|
2572.300 |
10901.700 |
|
Depreciation |
|
2371.700 |
2488.800 |
|
Profit Before Tax |
|
200.600 |
8412.900 |
|
Tax |
|
76.400 |
2590.800 |
|
Provisions and contingencies |
|
0.000 |
0.000 |
|
Profit After Tax |
|
124.200 |
5822.100 |
|
Extraordinary Items |
|
0.000 |
0.000 |
|
Prior Period Expenses |
|
0.000 |
0.000 |
|
Other Adjustments |
|
0.000 |
0.000 |
|
Net Profit |
|
124.200 |
5822.100 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
PAT / Total Income |
(%) |
15.61
|
21.24 |
19.76 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
21.32
|
28.75 |
25.89 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
13.13
|
15.22 |
15.16 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.26
|
0.32 |
0.28 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
1.33
|
1.32 |
1.25 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.39
|
1.51 |
1.38 |
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 |
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 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 |
Yes |
|
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. 183505.300 Millions compared to previous year’s Rs.131936.000 Millions. Profit before tax has increased to Rs. 51886.000 Millions in 2011-12 from Rs. 49880.200 Millions in 2010-11. Profit after tax has also grown to Rs. 40022.600 Millions in the year from Rs. 38040.100 Millions in the previous year. The Reserves and Surplus have touched Rs.180176.300 Millions.
SPONGE IRON:
The Company produced 1319940 MT of Sponge Iron during the year under report as against previous year’s production of 1319840 MT and achieved a capacity utilization of 96.35%.
POWER:
The Company generated 4634.000 million Kwh of power during the year under report as against last year’s 3420.000 million Kwh of power.
RAIPUR UNIT
Raipur Unit produced 1778 metric tons of castings and has done machining of 9060 metric tons during the year under report as year as against 1,569 metric tons and 8,613 metric tons respectively in the previous year.
PROJECTS COMPLETED
Following projects were completed during the year under report:
1. Power Plants
(i) 540 MW (4X135 MW) power plant at Dongamahua, Raigarh Chhattisgarh: Under Phase–II, Unit I and II of 135 MW each power generation capacity were commissioned in January, 2012. Both the Units have established their operations. With this, all the four Units of 135 MW each power generation capacity set up at Dongamahua, Raigarh, Chhattisgarh are operational and generating power.
(ii) 810 MW (6x135 MW) power plant at Angul, Odisha: The Company is setting up 810 MW (6x135 MW) captive power plant at Angul, Odisha for meeting power requirement of its upcoming 6 MTPA integrated steel plant. Second Unit of 135 MW power generation capacity was commissioned in February, 2012. With this, two units of 135 MW each are operational and generating power. Third Unit of 135 MW power generation capacity is expected to be commissioned in July, 2012.
2. Machinery
Division, Raipur, Chhattisgarh
The production capacity of Machinery Division of Raipur Unit has been enhanced from 5,100 metric tons per annum to 10,000 metric tons per annum by making investment in machine tools, expansion of covered area and material handling equipment. The Company has received IBR Certification as manufacturer of headers of Boilers and foundry items. This Division is envisaging further expansion of its capacity by inclusion of more covered area and material handling facility and has planned to install Alfa Set Sand System in foundry for further improvement in product quality. The Pressure Vessel Division with a capacity of 2,500 metric tons per annum has started commercial operations.
PROJECTS UNDER
IMPLEMENTATION
1. Steel Plant at
Angul, Odisha
The Company is setting up 6 MTPA steel plant at Angul in the state of Odisha. The following facilities are, at present, under installation:
· Coal Washery (2x 600 TPH)
· Sponge Iron Plant based on Coal Gasification
· MTPA)
· Steel Melting Shop (1.64 MTPA)
· Plate Mill (1.5 MTPA)
· Captive Power Plant (6x135 MW)
Out of the above facilities under implementation, the construction of Plate Mill has been completed and is expected to be commissioned in financial year 2012-13. Apart from this, work on raw material handling plant, beam welding plant, cross country pipeline, raw water reservoir, in-take pump house and a housing colony is at an advanced stage of implementation.
The following facilities are also being set up at Angul:
· Coke Oven Plant (2.0 MTPA)
· Sinter Plant (4.0 MTPA)
· Pellet Plant (4.0 MTPA)
· Blast Furnace (3.2 MTPA)
· Sponge Iron Plant (2.0 MTPA)
· Steel Melting Shop (4.36 MTPA)
· Hot Strip Mill (4.5 MTPA)
Department of Water Resources, Government of Odisha has given permission for drawing of 95.16 cusecs of water from river Bramhani for the plant. Ministry of Environment and Forests, Government of India has issued environmental clearance and Odisha State Pollution Control Board has issued consent to establish for setting up of said steel plant. Technology suppliers for Sinter Plant (4.0 MTPA), Blast Furnace (3.2 MTPA) and Sponge Iron Plant (2.0 MTPA) have been finalized and discussions are under progress for finalizing technology suppliers for remaining facilities
2. Steel Plant at
Patratu, Jharkhand
The Company envisages setting up of 6 MTPA integrated steel plant at Patratu in the state of Jharkhand and in its first phase, is implementing 3 MTPA steel plants. Agreement has been signed with Government of Jharkhand for supply of 66.54 mcm of water from Damodar Basin for the plant and an agreement with Jharkhand State Electricity Board is under process of renewal for supply of 20 cusecs of water. Ministry of Environment & Forests, Government of India has issued environmental clearance and State Pollution Control Board, Jharkhand has issued consent to establish for setting up of said steel plant. The Company has already acquired 1,039 acres of land and process is on for acquiring balance 2,205 acres of land.
3. Steel plant,
Raigarh, Chhattisgarh
The existing steelmaking capacity at Raigarh Works is 3 MTPA. Considering the increasing demand for steel in coming years, the Company plans to enhance steelmaking capacity at Raigarh Works to 11 MTPA and is in the process of seeking various approvals. The Company has entered into memoranda of understanding with the State Government of Chhattisgarh in terms of which the State Government of Chhattisgarh will extend necessary assistance to the Company in expeditiously obtaining various approvals,m coal and iron ore linkages, environmental clearances, acquisition of land etc. for implementing the said expansion plan. Ministry of Environment and Forests, Government of India has issued Terms of Reference (TOR) for the proposed expansion in terms of which the Company has submitted draft Environment Impact Assessment and Environment
Management Plan to the Chhattisgarh Environment Conservation Board, Raipur, Chhattisgarh.
In order to further improve and strengthen the present operations, the following facilities are being added:-
· Additional mill for pulverized coal injection is being set up which will help in increasing the coal injection in Blast Furnace thereby reducing the consumption of coal as well as improving the productivity.
· Third Turbo-blower is being installed which will act as standby to the existing two turbo blowers and ensure continuity of hot blast air to Blast Furnace in case of shut down of any turbo.
· Slab Caster up gradation is being done to increase the width of the slabs. This will help in rolling the increased width plates from the Plate Mill.
· Additional 6 Silos are being set up to blend different kinds of coal. Low cost coal is blended with high grade coking coal to reduce the cost of blended coal and thus reduces the cost of coke. This will reduce the cost of conversion of hot metal in Blast Furnace.
· Second Ladle Refining Furnace is being installed in Steel Melting Shop - III which will increase steelmaking capacity by increasing the capacity of secondary steel making.
4. Pellet Plant at
Barbil, Odisha
The Company is setting up one more 4.5 MTPA Iron Ore Pellet Plant with wet grinding process at Barbil for which basic engineering and proprietary equipment have been ordered. Water approval, environmental clearance and consent to establish for setting up 10 MTPA Pellet plant at Barbil have already been received. Detailed engineering agency has been finalized and critical packages ordering is in progress. The pelletisation will be a value added process of iron ore fines and better utilization of powdery ore available in the mines.
5. Shadeed Sponge Iron
Plant
As a part of expansion, Shadeed Iron and Steel Company LLC, Oman, a subsidiary company, is setting up a 2 MTPA Steel Melting Shop. M/s Danieli, Italy has been finalized as the technology and core equipment supplier and M/s Idom, Spain has been finalized as the Engineering Consultant.
SUBSIDIARY COMPANIES
AND THEIR BUSINESS
Jindal Power Limited (JPL), operating 1,000 MW (4 X 250 MW) power plant in Raigarh (Chhattisgarh) has closed financial year 2011-12 with a total sales of Rs. 30403.500 Millions and earned a profit after tax of Rs.17649.900 Millions JPL is expanding its power generation capacity by setting up 2,400 MW (4 X 600 MW) power plant adjacent to its existing works. JPL envisages setting up hydro projects in the State of Arunachal Pradesh in Joint Venture with Hydro Power Development Corporation of Arunachal Pradesh Limited and thermal power projects in the states of Jharkhand and Odisha. Shadeed Iron and Steel LLC, Oman, operating 1.5 MTPA Hot Briquette Iron plant achieved sales of Rs. 27943.000 Millions in the financial year 2011-12 and earned a profit after tax of Rs. 2441.700 Millions. Jindal Mining SA (Pty) Limited, South Africa, operating coal mines achieved a sales of Rs. 4510.200 Millions in the financial year 2011-12 and earned a profit after tax of Rs. 381.800 Millions.
Africa continent and Australia are rich in mineral resources and the Company, through its subsidiary companies, is expanding its business activities by acquiring, exploring and operating iron, coal, limestone and base metals. The operations in Kiepersol Colliery in South Africa stabilized over the last year enabling a ramp up of production in the coming years. The Company also continues to pursue more opportunities in mining of coal, iron ore and manganese in this country. In Mozambique, the coking coal project is in the final stages of development. The sale is likely to start in financial year 2012-13.
MANAGEMENT DISCUSSION
AND ANALYSIS
ECONOMIC REVIEW
The global economic environment, which was moving ahead steadily took adverse turn in the middle of financial year 2011-12 due to the turmoil in the euro zone and slow growth outlook on the US economy. The global economic activities have slowed down and become more uneven. European countries are facing financial turmoil because they could not reach a consensus on restructuring their economies, debt and budgetary outlays in the face of public protests. Public unrest swelled in some oil-producing countries resulting in uncertainties in oil production/ price. Rising international prices of crude oil have affected the global economies badly. Japan was struck by the devastating earthquake and tsunami affecting, in particular, developing economies.
The growth prospects have become more uncertain due to global economic slowdown. The renewed stress has undermined financial markets and institutions in developed economies. Global trade and capital flows have declined, resulting in slow growth in emerging and developing economies too. However, growth prospects in China, India, Brazil, Russia and South Korea appear better and are expected to be stronger in view of projected economic growth in these countries. The shift is clearly towards emerging markets which are expected to spearhead the growth in the global economy.
The Indian economy is expected to grow by about 6.9% in financial year 2011-12, after having registered a growth rate of 8.4% in each of the two preceding years. The agriculture and services sector performed well, but overall industrial growth has slowed down. Manufacturing growth during the financial year 2011-12 is expected to remain sluggish. Inflation remained high for most of the period during the year, but came down substantially at the year end. Supply-side factors have triggered inflation particularly in food items. The tightening of monetary policy by Reserve Bank of India in order to control inflation has resulted in slowing down of investment and growth, particularly in the industrial sector. The growth rate of investment in the Indian economy declined significantly during the year under report. Interest rates have increased resulting in higher costs of borrowings impacting profitability and internal accruals. Revenues of the Government have remained less than anticipated and with higher than budgeted expenditure; there is a strong possibility of high fiscal deficit.
Despite difficult conditions in the global economy, exports continued to do better in financial year 2011-12 and are expected to grow at 14.3% in real terms over and above 22.7% growth achieved in financial year 2010-11, as per advance estimates of Economic Survey. Imports are likely to end the year with a real growth rate of 17.5% as against 15.6% in financial year 2010-11.
.
OUTLOOK
Steel Industry in India seems to be positive despite continuing global economic slowdown. This optimism stems from many factors. The Indian steel industry is in some ways insulated from the events affecting steel industry on a global scale as it does not rely on exports to the developed markets. Despite high interest rates and marginal slowdown in economic activity, the basic economic fundamentals will ensure stable performance of the economy in coming years. The expected domestic consumption of steel in the infrastructure and consumer durables sector is likely to see an upward trend. A massive investment to the tune of about Rs. 5.000 Millions in infrastructure sector has been envisaged during the 12th Five Year Plan starting this year. At the same time, there is a greater emphasis on the manufacturing sector which is likely to witness growth in the coming years. This highlights the potential of steel consumption growth as rough estimate of incremental demand for steel in the country will be approximately 40 million tons in infrastructure sector alone
Emergence of the rural market which is currently consuming a meagre 10 kg per annum will contribute to overall consumption significantly buoyed by projects like Bharat Nirman, Pradhan Mantri Gram Sadak Yojana and Rajiv Gandhi Awaas Yojana. In 2011, India’s per capita steel consumption stood at 57 kg compared to 1,157 kg in South Korea, 507 kg in Japan, 460 kg in China, 284 kg in the US and World average of 216 kg.
The Company has built strong fundamentals over the years and is appropriately positioned to benefit from the expected increasing demand in the country for steel. The steel production capacity is being enhanced by setting up integrated steel plants in Angul (Odisha) and Patratu (Jharkhand) and by increasing present steelmaking capacity of Raigarh Unit (Chhattisgarh). The Company is procuring state-of-the-art technology for these projects. Shadeed Iron and Steel Company LLC, a subsidiary company is planning to set up steelmaking facility with an annual production capacity of 2.0 million tons. The proposed enhancement in the production capacity of steel making is in line with the increasing consumption of steel and the Company will be in a position to market its products. Marketing department has been strengthened appropriately which is exploring various market segments in India and abroad.
In view of expected overcapacity, increasing domestic market volatility and margin pressures, the Company is changing its approach to suit the changing market conditions. The Company is evolving itself to be able to respond to vagaries of emerging markets in a better manner. It includes use of improved technologies, cost efficiencies, greater partnering with key customers, innovative pricing of products, broadening product service offerings, focusing on more profitable and value added steel segments and prioritizing on markets. The Company is also taking steps to improve the supply chain efficiency and special attention is given to operational logistics. Enhancing supply chain flexibility and its robustness will not only help the Company to compete in a dynamic economic environment but will also enable it to enhance its market position. In terms of adapting to a volatile environment, the Company is also working towards flexibility in production and will also adjust its capacity utilization to match market conditions or adjust product mix to suit the demand prevailing in the market.
In view of planned enhancement of steelmaking capacity and with a view to ensure constant supply of iron ore and coal, the Company has been pursuing with Central and State Governments for allotment of iron ore and coal mines and also for raw material linkages. Vigorous efforts are also being made for acquisition of iron ore and coal mines in Australia and Africa continent. Power, which is in short supply in the country, is another key input for steel making. However, captive power generation is adequately meeting the present power requirements of the steel manufacturing facilities of the Company.
Power sector growth in the country has persistently lagged behind and acute deficiency in power supply has provided enormous opportunities to the private sector to enter this field of enterprise. The Company is also in the business of power generation through its subsidiary company, namely, Jindal Power Limited (JPL), which is operating 1,000 MW (4x250 MW) power plant at Tamnar (Chhattisgarh), the power generation capacity of which is being enhanced by setting up another 2,400 MW (4x600 MW) power project. JPL is also envisaging setting up of thermal and hydro power projects with an estimated aggregate power generation capacity of 12,700 MW. This business activity will add strength and speed to the growth of the Company and ensure rich returns to all the stakeholders.
FINANCIAL PERFORMANCE
The Company’s overall operational performance has been satisfactory. During the financial year 2011-12, it achieved sales and other income of Rs. 135184.300 Millions as against last year’s Rs. 97173.300 Millions registering an impressive growth of about 39%. Profit before interest and depreciation increased from Rs. 37257.100 Millions to Rs. 42469.700 Millions, registering a remarkable growth of about 14%. Profit before tax increased from Rs. 27529.400 Millions to Rs. 28430.100 Millions, registering a growth of about 3%. Net profit increased by about 2% from Rs. 20641.200 Millions to Rs. 21106.500 Millions. Cash profit increased from Rs. 29152.200 Millions to Rs. 31673.200 Millions growing by about 9%. Reserves and surplus stood at Rs. 107519.300 Millions. Net block of assets including capital work in progress stood at Rs. 220429.800 Millions.
FINANCIAL MANAGEMENT
The increasing requirement of funds is consistent with the growing business. Two main sources of funds are internal accruals and borrowing from lenders. Internal accruals alone cannot fund the Company’s expansion at existing works and setting up of new plants. The Company is raising funds for working capital and project implementation from banks, financial institutions and other lenders, nationally and internationally, which are providing multiple financial facilities. Various credit options offered by lenders are thoroughly examined to find out their competitiveness and based on their terms and conditions, need based funds are borrowed. The financial facilities are appropriately serviced and secured as per terms of sanction. The Company’s senior management monitors the requirement and arrangement of funds, servicing of debts and management of internal accruals. The Company has arranged Rs. 42779.300 Millions from banks and FIs to meet capital expenditure during the financial year 2011-12.
UNSECURED LOAN:
(Rs in Millions)
|
Particulars |
As
on 31.03.2012 |
As
on 31.03.2011 |
|
Term Loans |
|
|
|
Other Loans |
9204.600 |
7722.900 |
|
Fixed Deposits from public |
60.800 |
379.400 |
|
Other Loans and Advances |
|
|
|
External Commercial Borrowings |
11669.200 |
18825.000 |
|
From Banks |
|
|
|
Short Term loans |
4772.100 |
7958.200 |
|
Other Loans |
24671.400 |
13495.800 |
|
Loans and advances
from related parties |
|
|
|
Inter Corporate Deposits (from subsidiary) |
24865.600 |
15185.600 |
|
Total |
75243.700 |
63566.900 |
STATEMENT OF STANDALONE UNAUDITED FINANCIAL
RESULTS FOR THE QUARTER AND HALF YEAR ENDED ON 30TH SEPTEMBER 2012
PART I
(Rs in Millions) (Rs in Millions)
|
|
Particular |
30.09.2012 |
30.06.2012 |
30.09.2012 |
|
|
|
|
|
For Quarter Ended |
For 6 months ended |
|
||
|
1 |
Income From
Operations |
|
|
|
|
|
|
|
a |
Net Sales / Income from Operations (net of excise duty) |
35419.700 |
33118.200 |
68537.900 |
|
|
|
b |
Other Operating Income |
470.000 |
192.700 |
662.700 |
|
|
|
|
Total |
35889.700 |
33310.900 |
69200.600 |
|
|
2 |
Expenses |
|
|
|
|
|
|
|
a |
Cost of materials consumed |
10806.600 |
13038.800 |
23845.400 |
|
|
|
b |
Purchase of stock-in-trade |
428.500 |
1105.000 |
1533.500 |
|
|
|
c |
Chance In Inventories of finished goods, work-in-progress and stock-in-trade |
(423.800) |
(4442.300) |
(4868.100) |
|
|
|
d |
Employee benefits expenses |
1046.200 |
1117.300 |
2163.500 |
|
|
|
e |
Depreciation and amortisation expenses |
2488.800 |
2371.700 |
4860.500 |
|
|
|
f |
Stores and Spares consumed |
4180.900 |
4125.000 |
8305.900 |
|
|
|
g |
Power and Fuel |
2605.300 |
2954.900 |
5560.200 |
|
|
|
h |
Other Expenditure |
4641.500 |
5035.000 |
9676.500 |
|
|
|
|
Total expenses |
25772.000 |
23305.400 |
51077.400 |
|
|
3 |
Profit /(loss) from
Operations before other Income, finance torts and exceptional Hems |
10117.700 |
8005.500 |
18123.200 |
|
|
|
4 |
Other Income |
74.100 |
122.000 |
196.100 |
|
|
|
5 |
Profit / (Loss)
from ordinary activities before finance costs and exceptional Items |
10191.800 |
8127.500 |
18319.300 |
|
|
|
6 |
Finance costs |
1778.900 |
2185.700 |
3964.600 |
|
|
|
7 |
Profit / (Loss) from
ordinary activities after finance cost but before exceptional Items |
8412.900 |
5941.800 |
14354.700 |
|
|
|
8 |
Exceptional Items |
- |
5741.200 |
5741.200 |
|
|
|
9 |
Profit / (Loss)
from ordinary activities before tax |
8412.900 |
200.600 |
8613.500 |
|
|
|
10 |
Tax expense |
2590.800 |
76.400 |
2667.200 |
|
|
|
11 |
Net Profit / (Loss)
from ordinary activities after tax |
5822.100 |
124.200 |
5946.300 |
|
|
|
12 |
Extraordinary Item |
- |
- |
.- |
|
|
|
13 |
Net Profit/ (Loss) for
the period |
5822.100 |
124.200 |
5946.300 |
|
|
|
14 |
Share of profit / (loss) of associates |
- |
- |
|
|
|
|
I5 |
Minority Interest |
- |
- |
- |
|
|
|
I6 |
Other Related Items |
- |
- |
- |
|
|
|
17 |
Net Profit / (Lois)
after taxes, minority Interest and Shares of profit / (loss) of associates |
- |
- |
|
|
|
|
I8 |
Cash Profit |
9046.000 |
2528.100 |
11574.100 |
|
|
|
19 |
Paid up equity share capital |Face Value Re. 1/-per share) |
934.800 |
93.48 |
93.48 |
|
|
|
20 |
Paid Up Debt Capital of the Company" |
- |
|
16620.000 |
|
|
|
21 |
Reserves excluding revaluation reserve as per balance sheet of previous accounting year |
- |
- |
- |
|
|
|
22 |
Earnings Per Share (EPS)
(before Extraordinary Items) (of Re. 1/- each) [not annuallsed): |
|
|
|
|
|
|
|
a) Basic |
6.23 |
0.13 |
636 |
|
|
|
|
b] Diluted |
6.23 |
0.13 |
636 |
|
|
|
23 |
Debt Equity Ratio- |
- |
- |
133 |
|
|
|
24 |
Debt Service Coverage Ratio |
- |
- |
131 |
|
|
|
25 |
Interest Service Coverage Ratio |
- |
- |
4.62 |
|
|
PART II (Rs
in Millions)
|
Particular of Shareholding |
30.09.2012 |
30.06.2012 |
30.09.2012 |
|
|
For Quarter Ended |
For 6 Months Ended |
|
|
Public Shareholding |
|
|
|
|
Number of Shares |
383071196 |
383571196 |
383071196 |
|
Percentage of Shareholding |
40.98 |
41.03 |
40.98 |
|
|
|
|
|
|
Promoters and Promoter Group Shareholding |
|
|
|
|
a)
Pledged/Encumbered |
|
|
|
|
Number of shares |
15846448 |
15846448 |
15846648 |
|
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 |
1.70 |
1.70 |
|
b)
Non-encumbered |
|
|
|
|
Number of shares |
535416174 |
535416174 |
535416174 |
|
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) |
57.33 |
57.33 |
57.33 |
|
Particular |
For the Quarter
Ended |
|
|
30.09.2012 |
|
INVESTOR COMPLAINTS |
|
|
Pending at the beginning of the quarter |
Nil |
|
Received during the quarter |
6 |
|
Disposed of during the quarter |
6 |
|
Remaining unresolved at the end of the quarter |
Nil |
STANDALONE STATEMENT OF
ASSETS AND LIABILITIES
(Rs in Millions)
|
Particular |
30.09.2012 |
|
|
|
|
A EQUITY AND
LIABILITIES |
|
|
1 Shareholders
Funds |
|
|
a) Share Capital |
934.800 |
|
b) Reserves & Surplus |
113901.500 |
|
Sub-total- Shares
holders' funds |
114836.300 |
|
2 Share application money pending allotment |
|
|
3 Minority Interest |
- |
|
4 Non- Current
Liabilities |
|
|
a) Long-term borrowings |
97948.100 |
|
b) Deferred Tax-liabilities (net) |
11445.400 |
|
c) Other long-term liabilities |
1448.900 |
|
d) Long-term provisions |
174.200 |
|
Sub-total-Non-current
liabilities |
111016.600 |
|
5 Current
liabilities |
|
|
a) Short-term borrowings |
69248.800 |
|
b) Trade payables |
12625.100 |
|
c) Other current liabilities |
34986.400 |
|
d) Short-term provisions |
24980.800 |
|
Sub-total current
liabilities |
141841.100 |
|
TOTAL-EQUITY AND
LIABILITIES |
367694.000 |
|
B ASSETS |
|
|
1 Non-current
assets |
|
|
a) Fixed assets |
239771.000 |
|
b) Goodwill on consolidation |
- |
|
c) Non-current investments |
13213.700 |
|
d) Long-term loans and advances |
11339.400 |
|
e) Other non-current assets |
05.600 |
|
Sub-total-Non-current
assets |
264329.700 |
|
2 Current Assets |
|
|
a) Inventories |
38117.400 |
|
b) Trade receivables |
13041.700 |
|
c) Cash and cash equivalents |
2126.600 |
|
d) Short-term loans and advances |
46437.200 |
|
e) Other current assets |
3541.400 |
|
Sub-total-current
assets |
103364.300 |
|
TOTAL ASSETS |
367694.000 |
SEGMENT WISE REPORTING OF
REVENUE, RESULTS AND CAPITAL EMPLOYED FOR THE QUARTER ENDED 30.09.2012
(Rs in Millions)
|
Particular of Shareholding |
30.09.2012 |
30.06.2012 |
30.09.2012 |
|
|
For Quarter Ended |
For 6 Months Ended |
|
|
1 Segment Revenue |
|
|
|
|
a) Iron and Steel |
33091.800 |
30563.100 |
63654.900 |
|
b) Power |
5329.800 |
5433.100 |
10762.900 |
|
c) Others |
924.100 |
859.100 |
1783.200 |
|
Less: Inter Segment Revenue |
3456.000 |
3544.400 |
7000.400 |
|
Net Sales/
Income from operation |
35889.700 |
33310.900 |
69200.600 |
|
Segments Results |
|
|
|
|
a) Iron and Steel |
9677.200 |
8292.300 |
17969.500 |
|
b) Power |
1943.000 |
2047.000 |
1044.200 |
|
c) Others |
23.000 |
98.900 |
121.900 |
|
Less: Interest |
1778.900 |
2185.700 |
3964.600 |
|
Other Un-Allocable Expenditure (Not off unalllocable Income) |
1451.400 |
2310.700 |
3762.100 |
|
Exceptional Items |
- |
5741.200 |
5741.200 |
|
Total Profit
Before Tax |
8412.900 |
200.600 |
8613.500 |
|
Capital Employed |
|
|
|
|
Iron and Steel |
94257.900 |
95263.400 |
94257.900 |
|
Power |
51679.100 |
45281.200 |
51679.100 |
|
Others |
5519.300 |
5441.500 |
5519.300 |
|
Total Segment
Capital Employed |
151456.300 |
145986.100 |
151456.300 |
NOTES:
1. 4th Unit of 135 MW Power Plant at Angul, Odisha is commissioned today 09.11.2012. Balance 2 units at angul are expected to be commissioned in the current financial year.
2. Previous quarter/period figures have been regrouped and reclassified to make them comparable.
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 09.11.2012'
4. The above standalone results have been reviewed by auditors as per clause 41 of the listing agreement.
CONTINGENT
LIABILITIES
(Rs in Millions)
|
Particular |
31.03.2012 |
31.03.2011 |
|
Guarantees issued by the Company’s Bankers on behalf of the Company |
3760.200 |
3511.100 |
|
Letter of credit opened by banks |
6289.000 |
14531.200 |
|
Corporate guarantees/undertakings issued on behalf of third parties. |
33337.900 |
33595.000 |
|
Disputed Excise Duty and Other demands |
7809.600 |
6847.700 |
|
Bonds executed for machinery imports under E PCG Scheme |
27732.200 |
30399.900 |
|
Income Tax demands where the cases are pending at various stages of appeal with the authorities |
1877.600 |
1872.100 |
|
Claims against the Company, not acknowledge as debt |
- |
- |
FIXED ASSETS:
· Land Freehold
· Land Leasehold
· Live Stock
· Buildings
· Plant and Equipment
· Electrical Fittings
· Furniture and Fixtures
· Vehicles
· Air Craft
· Office equipment
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No records exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guiltyor against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals have
been formally charged or convicted by a competent governmental authority for
any financial crime or under any formal investigation by a competent government
authority for any violation of anti-corruption laws or international anti-money
laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.54.29 |
|
|
1 |
Rs.84.09 |
|
Euro |
1 |
Rs.72.44 |
INFORMATION DETAILS
|
Report Prepared
by : |
RAJ |
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 |
- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.