MIRA INFORM REPORT

Report Date :

01.07.2013

IDENTIFICATION DETAILS

Name :	JSW STEEL LIMITED (w.e.f. 16.06.2005)
Formerly Known As :	JINDAL VIJAYNAGAR STEEL LIMITED
Registered Office :	JSW Centre, Bandra Kurla Complex, Bandra (East), Mumbai-400051, Maharashtra
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	15.03.1994
Com. Reg. No.:	11-152925
Capital Investment / Paid-up Capital :	Rs. 5631.800 Millions
CIN No.: [Company Identification No.]	L27102MH1994PLC152925
TAN No.: [Tax Deduction & Collection Account No.]	MUMJ05285A / PNEJ05353F
PAN No.: [Permanent Account No.]	AAACJ4323N / AACT4323N
Legal Form :	A Public Limited Liability Company. The Company's Shares are Listed on the Stock Exchanges
Line of Business :	Manufacturer and Seller of Iron and Steel Products.
No. of Employees :	8925 (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 740000000
Status :	Excellent
Payment Behaviour :	Regular
Litigation :	Clear
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 31^st, 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	Long term bank facilities: AA
Rating Explanation	High degree of safety and low credit risk
Date	07.01.2013

Rating Agency Name	CARE
Rating	Short term bank facilities: A1+
Rating Explanation	Very strong degree of safety and lowest credit
Date	07.01.2013

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.

INFORMATION DECLINED

MANAGEMENT NON-COOPERATIVE (Tel. No.: 91-22-42861000)

LOCATIONS

Registered/ Regional Office:	JSW Centre, Bandra Kurla Complex, Bandra (East), Mumbai-400051, Maharashtra
Tel. No.:	91-22-42861000
Fax No.:	91-22-42863000
E-Mail :	jvsl.blr@sm3.sprintrpg.ems.vsnl.net.in admin.vijayanagar@jvsl.com lancy.varghese@jsw.in jvsl@jvsl.com ketan.patel@jsw.in
Website :	http://www.jsw.in
Corporate Office 1:	Victoria House, 2^nd Floor, Pandurang Budhkar Marg, Lower Parel, Mumbai – 400013, Maharashtra, India
Tel No. :	91-22-24927000 / 43437800
Email :	natalie.barretto@jsw.in
Corporate Office 2:	The Enclave, Maratha Udhog Bhavan, New Prabhadevi Road, Prabhadevi, Mumbai – 400025, Maharashtra, India
Tel No. :	91-22-67838000
Fax No. :	91-22-24320740
Factory 1 :	Vijayanagar Works P.O. Vidyanagar, Toranagallu Village, Sandur Taluk, District Bellary- 583275, Karnataka, India
Tel. No.:	91-8395-250120 to 30
Fax No.:	91-8395-250138 / 250665
Factory 2 :	Vasind Works Shahapur Taluk, District Thane- 421604, Maharashtra, India
Tel. No.:	91-2527-220022 to 025
Fax No.:	91-2527-220020 / 84 / 92
Factory 3 :	Tarapur Works MIDC Boisar, District Thane– 401506, Maharashtra, India
Tel. No.:	91-2525-270147 / 270149
Fax No.:	91-2525-270148
Factory 4 :	Salem Works 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
Factory 5 :	PO Vidyanagar, Toranagallu, District Bellary – 583275, Karnataka, India
Tel No.:	91-8395-250120 to 30
Fax No.:	91-8395-250138 / 250665
Branches :	Located at : · Karnataka · Tamilnadu · Andhra Pradesh · Coimbatore · New Delhi · Madhya Pradesh
Additional Main Office :	Located at: · Mumbai · Bangalore · Rajasthan
Overseas Office :	JSW Steel (USA) Inc. 5200 East Mc Kinney Road, Baytown , TEXAS 77523, U.S.A. Office : 1 - 281 - 383 - 5100 Fax : 1 - 281 - 383 - 1803 Website : www.jswsteelusa.com JSW Steel Service Centre (UK) Limited Lake Road , Leeway Industrial Estate, Newport, NP19 4WN, United Kingdom Tel: 44 - 1633290260 Fax: 44 - 1633290911 Website: www.jswsteel.co.uk

DIRECTORS

(AS ON 31.03.2011)

Name :	Mrs. Savitri Devi Jindal
Designation :	Chairperson
Name :	Mr. Sajjan Jindal
Designation :	Vice Chairman and Managing Director
Name :	Mr. Seshagiri Rao M.V.S.
Designation :	Joint Managing Director and Group Chief Finance Officer
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
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 :	Dr. Rajneesh Goel
Designation :	Nominee Director of KSIIDC
Name :	Mr. Yasushi Kurokawa
Designation :	Nominee Director of JFE Steel Corporation, Japan
Name :	Mrs. Zarin Daruwala
Designation :	Nominee Director of ICICI Bank Limited
Name :	Dr. S K Gupta
Designation :	Director
Name :	Mr. Anthony Paul Pedder
Designation :	Director
Name :	Dr. Vijay Kelkar
Designation :	Director
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 Inn. London.
Date of Appointment :	09.05.2005
Name :	Mr. Kannan Vijayaraghavan
Designation :	Director
Date of Birth/Age :	04.05.1959
Qualification :	Fellow Member of the Institute of Chartered Accountants of India, Certified Management Consultant and Fellow of the Institute of Management Consultants.
Date of Appointment :	16.06.2008

KEY EXECUTIVES

Name :	Lancy Varghese
Designation :	Company Secretary

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 31.03.2013

Category of Shareholder	No. of Shares	% of No. of Shares
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	3995003	1.79
Central Government / State Government(s)	907952	0.41
Bodies Corporate	74285508	33.29
Sub Total	79188463	35.49
(2) Foreign
Bodies Corporate	5704612	2.56
Sub Total	5704612	2.56
Total shareholding of Promoter and Promoter Group (A)	84893075	38.05
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	2784293	1.25
Financial Institutions / Banks	7178781	3.22
Central Government / State Government(s)	1237500	0.55
Foreign Institutional Investors	43842602	19.65
Sub Total	55043176	24.67
(2) Non-Institutions
Bodies Corporate	11656891	5.22
Individuals
Individual shareholders holding nominal share capital up to Rs. 0.100 million	13590047	6.09
Individual shareholders holding nominal share capital in excess of Rs. 0.100 million	5743570	2.57
Any Others (Specify)	52190441	23.39
Trusts	4998331	2.24
Overseas Corporate Bodies	37650	0.02
Non Resident Indians	2867257	1.29
Foreign Bodies - D R	44287203	19.85
Sub Total	83180949	37.28
Total Public shareholding (B)	138224125	61.95
Total (A)+(B)	223117200	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued	0	0.00
(1) Promoter and Promoter Group	0	0.00
(2) Public	0	0.00
Sub Total	0	0.00
Total (A)+(B)+(C)	223117200	0.00

BUSINESS DETAILS

Line of Business :

Manufacturer and Seller of Iron and Steel Products.

Products :

Item Code No. (ITC Code)	Product Description
72.08	Hot Rolled Steel Strips/ Sheets/ Plates
72.09	MS Cold Rolled Coils/ Sheet
72.10	MS Galvanized Plain/ Corrugated/Colour coated Coils/ Sheet
720690	Steel Billet
721490	Bar And Rods

PRODUCTION STATUS (AS ON 31.03.2012)

Particulars	Unit	Installed Capacity	Actual Production
Ms Slabs	Tonnes	8300000	5659244
Hot Rolled Coils/Steel Plated/Sheets	Tonnes	6700000	5268577
Hot Rolled Steel Plates	Tonnes	320000	96210
Cold Rolled Coils / Sheet	Tonnes	1825000	1624572
Galvanised/Galvalum Coils / Sheet	Tonnes	925000	917328
Colour Coating Coils/Sheets	Tonnes	232000	176850
Steel Billets And Bloom	Tonnes	2500000	1769758
Long Rolled Products	Tonnes	2450000	1521867

NOTE:

1. Licensed capacity is not applicable in view of the Company’s products having been delicensed as per the licensing policy of the Government of India.

2. Installed capacity is as certified by the management and accepted by auditors, being a technical matter.

3. Production of Galvanized/ Galvalume Coils/ Sheets includes 85381 tonnes from third parties on a job work basis.

GENERAL INFORMATION

No. of Employees :

8925 (Approximately)

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 Indore

· State Bank of Mysore

· State Bank of Patiala

· Union Bank of India

· Vijaya Bank

Facilities :

Secured Loan	As on 31.03.2012 (Rs. in Millions)	As on 31.03.2011 (Rs. in Millions)
Long Term Borrowing
Debentures
11 % Non Convertible Debentures of Rs.1.000 Million each	10000.000	0.000
10.25 % Non Convertible Debentures of Rs.1.000 Million each	5000.000	5000.000
10.60 % Non Convertible Debentures of Rs.1.000 Million each	3500.000	3500.000
10.10 % Non Convertible Debentures of Rs.1.000 Million each	10000.000	10000.000
11.82 % (Previous Year 10.20%) Non Convertible Debentures of Rs.1.000 Million each	146.600	230.300
11.82 % (Previous Year 10.20%) Non Convertible Debentures of Rs.1.000 Million each	253.500	331.500
7.10 % Non Convertible Debentures of Rs.1.000 Million each	0.000	5000.000
Term Loan
Rupee Term Loans from Banks	50734.500	28330.000
Foreign currency Term loans from Banks	10617.200	13639.100
Rupee Term Loans from Financial Institution	254.500	376.100
Short Term Borrowing
Working Capital Loans from Banks	1628.900	3342.400
Foreign currency loan from Banks	1534.600	0.000
Total	93669.800	69749.400

Banking Relations :	--
Auditors :
Name :	Deloitte Haskins and Sells Chartered Accountants
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 East Africa Limited · JSW Steel Processing Centres Limited · JSW Bengal Steel Limited · JSW Natural Resources India Limited · Barbil Beneficiation Company Limited · JSW Energy (Bengal) Limited · JSW Jharkhand Steel Limited · JSW Building Systems Limited · Amba River Coke Limited
Joint Venture :	Vijayanagar Minerals Private Limited Rohne Coal Company Private Limited Geo Steel LLC JSW Severfield Structures Limited JSW Structural Metal Decking Limited Gourangdih Coal Limited JSW MI Steel Service Center Private Limited
Associates:	· Jindal Praxair Oxygen Company Private Limited. · JSW Ispat Steel Limited
Other Related Parties :	JSW Energy Limited JSL Limited JSW Realty and Infrastructure Private Limited Jindal Saw Limited Jindal Steel and Power Limited Jindal South West Holdings Limited JSOFT Solutions Limited Jindal Industries Limited JSW Cement Limited JSW Jaigarh Port Limited JSW Investments Private Limited Reynold Traders Private Limited Raj West Power Limited JSW Power Trading Company Limited JSW Aluminium 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

CAPITAL STRUCTURE

After 25.07.2011

Authorised Capital : Rs.30000.000 Millions

Issued, Subscribed & Paid-up Capital : Rs.5021.521 Millions

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
2000000000	Equity shares	Rs.10/- each	Rs. 20000.000 millions
1000000000	Preference 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
	Add: Equity shares Forfeited		Rs. 610.300 millions
279034907	10% Cumulative Redeemable Preference Shares	Rs.10/-each	Rs. 2790.300 millions
	Total		Rs. 5631.800 Millions

Reconciliation of number of shares outstanding at the beginning and end of the year:

Particulars	31.03.2012
Equity (including shares represented by underlying GDRs)	223117200
Outstanding at the beginning of the year
Preference:
Outstanding at the beginning and at the end of the year	279034907

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 represented by underlying GDR’s which do 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.

26,00,938 (previous year 30,85,814) equity shares represent the shares underlying outstanding Global Depository Receipts (GDRs). Each GDR represents 1 underlying equity share.

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 alvanized. 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:

Equity (excluding shares represented by underlying GDRs)

JFE Steel Corporation	No of Shares %	33,467,580 15.00%	32,982,704 14.78%
Jindal South West Holdings Limited	No of Shares %	17,284,923 7.75%	17,284,923 7.75%
JSW Energy Investments Private Limited	No of Shares %	13,764,364 6.17%	13,764.364 6.17%
Preference
ICICI Bank Limited	No of Shares %	125,707,730 45.05%	125,707,730 45.05%
IDBI Bank Limited	No of Shares %	69,734,847 24.99%	69,734,847 24.99%
Life Insurance Corporation of India	No of Shares %	36,348,783 13.03%	36,348,783 13.03%
IFCI Limited	No of Shares %	21,262.362 7.62%	21.262,362 7.62%

Equity shares alvaniz as fully paid-up pursuant to contracts without payment being received in cash during the period of five years immediate preceding the date of the Balance Sheet are as under:

1,50,35,712 equity shares to the shareholders of the erstwhile Southern Iron and Steel Company Limited pursuant to a scheme of Amalgamation.

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2012	31.03.2011
I. EQUITY AND LIABILITIES
(1)Shareholders’ Funds
(a) Share Capital	5631.800	5631.800
(b) Reserves & Surplus	179343.100	161327.100
I Money received against share warrants	0.000	5293.800
(2) Share Application money pending allotment	0.000	0.000
Total Shareholders’ Funds (1) + (2)	184974.900	172252.700
(3) Non-current liabilities
(a) Long-term borrowings	115280.900	88679.000
(b) Deferred tax liabilities (Net)	30120.900	23170.400
I Other long term liabilities	827.200	4499.000
(d) long-term provisions	329.000	218.200
Total Non-current Liabilities (3)	146558.000	116566.600
(4) Current liabilities
(a) Short term borrowings	7741.300	18794.300
(b) Trade payables	92542.500	60098.200
I Other current liabilities	71825.200	44284.200
(d) Short-term provisions	2269.200	3587.800
Total Current Liabilities (4)	174378.200	126764.500
TOTAL	505911.100	415583.800
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	270716.900	210891.100
(ii) Intangible Assets	188.900	130.400
(iii) Capital work-in-progress	24767.700	56899.400
(iv) Intangible assets under development	270.400	181.200
(b) Non-current Investments	42122.000	38318.100
I Deferred tax assets (net)	0.000	0.000
(d) Long-term Loan and Advances	24363.300	19820.100
(e) Other Non-current assets	15.800	0.800
Total Non-Current Assets	362445.000	326241.100
(2) Current assets
(a) Current investments	2012.200	2670.000
(b) Inventories	51790.800	41384.100
I Trade receivables	13620.600	8386.500
(d) Cash and cash equivalents	29560.200	18868.000
(e) Short-term loans and advances	46482.300	18034.100
(f) Other current assets	0.000	0.000
Total Current Assets	143466.100	89342.700
TOTAL	505911.100	415583.800

SOURCES OF FUNDS		31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		5271.100
2] Share Application Money		0.000
3] Share Warrants		0.000
4] Reserves & Surplus		91792.300
5] (Accumulated Losses)		0.000
NETWORTH		97063.400
LOAN FUNDS
1] Secured Loans		89875.100
2] Unsecured Loans		25975.900
TOTAL BORROWING		115851.000
DEFERRED TAX LIABILITIES		19649.500
TOTAL		232563.900
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		168661.400
Capital work-in-progress		66842.700
INVESTMENT		17683.500
DEFERREX TAX ASSETS		0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	25857.700
	Sundry Debtors	5632.500
	Cash & Bank Balances	2871.100
	Other Current Assets	0.000
	Loans & Advances	21233.900
Total Current Assets		55595.200
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	15893.500
	Other Current Liabilities	57683.200
	Provisions	2642.200
Total Current Liabilities		76218.900
Net Current Assets		(20623.700)
MISCELLANEOUS EXPENSES		0.000
TOTAL		232563.900

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	321226.600	233671.100	182024.800
		Other Income	1793.000	2345.100	5290.800
		TOTAL (A)	323019.600	236016.200	187315.600
Less	EXPENSES
		Cost of Material consumed	209601.100	148030.900	139295.800
		Purchase of traded goods	775.000	1822.300
		Changes in inventories of finished goods, work-in-progress and stock-in-trade	(2978.100)	(6829.800)
		Employee benefits expenses	6258.700	5344.700
		Other Expenses	51261.900	37534.000
		Exceptional items	8209.600	0.000
		TOTAL (B)	273128.200	185902.100	139295.800
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) I		49891.400	50114.100	48019.800
Less	NET FINANCE CHARGES (D)		11864.100	8541.700	8589.200
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		38027.300	41572.400	39430.600
Less/ Add	DEPRECIATION/ AMORTISATION (F)		17081.700	13787.100	11234.100
	PROFIT BEFORE TAX (E-F) (G)		20945.600	27785.300	28196.500
Less	TAX (H)		4687.000	7678.600	7969.100
	PROFIT AFTER TAX (G-H) (I)		16258.600	20106.700	20227.400
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		27883.600	53277.800	38831.500
Less	APPROPRIATIONS
		Transfer to Debenture Redemption Reserve	NA	0.000	1250.000
		Transfer to Capital Redemption reserve		0.000	99.000
		Dividend on Preference Shares		279.000	289.200
		Proposed Final Dividend on Equity Shares		2733.200	1777.000
		Corporate Dividend Tax		488.700	343.100
		Transfer to General Reserve		42000.000	2022.800
	BALANCE CARRIED TO THE B/S		NA	27883.600	53277.800
	EARNINGS IN FOREIGN CURRENCY
		FOB Value of Exports	53752.200	33282.500	26837.800
		Sale of Carbon Credits	133.700	386.700	602.100
		Interest Income	1078.300	457.600	280.300
	TOTAL EARNINGS		54964.200	34126.800	27720.200
	IMPORTS
		Capital Goods	9755.300	14829.900	19358.500
		Raw Materials	123970.500	87326.400	63337.200
		Stores and Spare Parts	3723.900	2784.400	1728.200
	TOTAL IMPORTS		137449.700	104940.700	84423.900
	Earnings Per Share (Rs.)
	Basic		71.42	97.17	106.34
	Diluted		71.42	96.33	105.94

QUARTERLY RESULTS

PARTICULARS	30.06.2012	30.09.2012	31.12.2012	31.03.2013
Type	1^st Quarter	2^nd Quarter	3^rdQuarter	4^th Quarter
Net Sales	90376.000	88709.000	82924.500	92908.600
Total Expenditure	72648.100	73457.500	69788.400	75935.900
PBIDT (Excl OI)	17727.900	15251.500	13136.100	16972700
Other Income	722.700	5006.400	566.100	537.400
Operating Profit	18450.600	20257.900	13702.200	17510.100
Interest	4066.600	4207.500	4545.700	4425.000
Exceptional Items	(5920.500)	0.000	(3274.100)	1298.700
PBDT	8463.500	16050.400	5882.400	14383.800
Depreciation	4677.800	4811.700	4975.100	5274.300
Profit Before Tax	3785.700	11238.700	907.300	9109.500
Tax	1095.700	3016.100	(460.000)	3377.200
Provisions and contingencies	0.000	0.000	0.000	0.000
Profit After Tax	2690.000	8222.600	1367.300	0.000
Extraordinary Items	0.000	0.000	0.000	0.000
Prior Period Expenses	0.000	0.000	0.000	0.000
Other Adjustments	0.000	0.000	0.000	0.000
Net Profit	2690.000	8222.600	1367.300	5732.300

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	5.03	8.52	10.80
Net Profit Margin (PBT/Sales)	(%)	6.52	11.89	15.49
Return on Total Assets (PBT/Total Assets}	(%)	4.77	6.68	12.57
Return on Investment (ROI) (PBT/Networth)		0.11	0.16	0.29
Debt Equity Ratio (Total Liability/Networth)		0.67	0.62	1.19
Current Ratio (Current Asset/Current Liability)		0.82	0.70	0.73

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	Yes
31]	Date of Birth of Proprietor/Partner/Director, if available	Yes
32]	PAN of Proprietor/Partner/Director, if available	No
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	Yes

NOTE

The registered office of the company has been shifted from JSW Centre, Bandra Kurla Complex, Bandra (East), Mumbai-400051, Maharashtra, India to the present address w.e.f. 20.06.2013

CHARGES

ENTITY	PERSON	COMPETENT AUTHORITY	REGULATORY CHARGES	REGULATORY ACTION(S) / DATE OF ORDER	FURTHER DEVELOPMENTS
JSW Steel Limited		CDSL	High pending demat requests	Put up on CDSL website for public notice 01-Jun-2013	--
JSW Steel Limited		NSDL	High pending demat requests	Put up on NSDL website for public notice 24-Sep-2010	Not appearing in the list dated 15/04/2011
JSW Steel Limited		NSDL	Long pending demat requests and not responding / services stopped by the registrar	Put up on NSDL website for public notice 16-Dec-2005	Not appearing in the list dated 15/04/2011

FINANCIAL RESULTS

Standalone Results

The year was challenging due to non-availability of Iron ore caused by imposition of ban on Iron ore mining by the Honourable Supreme Court of India in the State of Karnataka. Inspite of this constraint the Company achieved a volume growth over previous year of 16% in crude steel production during the current year. It had achieved crude steel production of 7.429 million tonnes and volume of sales of 7.815 million tonnes. The growth in volumes could be achieved due to commissioning of the 3.2 mtpa Crude Steel Expansion Project at Vijayanagar Works in Q2 of 2011-12 enhancing the Crude Steel manufacturing capacity to 10 mtpa. The overall steel manufacturing capacity of the Company Stood at 11 mtpa. With the completion of this expansion project, the Company has scaled new heights as a leading player in the steel industry in the country. The Expansion facilities stabilized quickly and achieved hot metal production of 1.135 million tonnes during the current year, which worked out to around 72% of the Installed capacity.

The Gross Turnover and Net Turnover for the year stood at Rs. 346580.000 Millions and Rs. 320600.000 Millions, respectively, showing a growth of 38% and 39% over the previous year mainly driven by growth in volumes.

The operating EBIDTA for the year was Rs. 56310.000 Millions and operating EBIDTA margin for the year was 17.53%. The Company posted PAT of Rs. 16260.000 Millions after considering exceptional item (Foreign exchange loss) of Rs. 8210.000 Millions. Due to the unusual depreciation in the value of the Rupee against US Dollar during the previous fiscal, the net loss of Rs. 8210.000 Millions on restatement of foreign currency monetary items at close of the year has been considered by the Company to be exceptional in nature.

In view of the rulings viz permitting National Mineral Development Corporation (NMDC) to mine 1 million tonne per month to be supplied to steel industry and sale of around 25 million tonne of Iron ore stock pile through E-Auction, the Company could operate the plant at about 80% capacity in the year. Had the constraints of Iron ore supply not been there, the performance could have been much higher.

PROJECTS AND EXPANSION PLANS

The progress made on various projects were as follows:

Vijayanagar Works

(31) Projects commissioned during FY 2011-12

The 3.2 mtpa expansion project at Vijayanagar works was completed and commissioned during the last financial year.

Other projects completed during the year include:

- 4.2 mtpa – Pellet Plant 2.

- 300 MW – Captive Power Plant (CPP 4).

(b) Projects under progress

- 2.3 mtpa – Cold Rolling Mill Complex, being executed in two phases, the first phase is expected to be commissioned in FY 2013-14 and second phase in FY 2014-15.

- 2^nd Phase (1.5 mtpa) of New Hot Strip Mill, taking the rolling capacity to 5 mtpa by September 2012.

- 2^nd Phase of Beneficiation Plant 2, taking total capacity to 20 mtpa by FY 2012-13 in phased manner.

I Projects proposed

- The Company has assessed the existing facilities at Vijayanagar works and started working on increasing plant capacity from 10 mtpa to 12 mtpa. Total project cost is about Rs. 26950.000 millions The project is expected to be commissioned in FY 2013-14.

Salem Works

(31) Projects commissioned during F.Y. 2011-12

- Blooming mill phase 2 commissioned in June 2011, taking the total capacity to 0.5 mtpa. Ramping up of production is under progress.

(b) Projects under progress

- Installation of reducing and sizing block for capacity and quality enhancement of bar and rod Mill. Expected to be commissioned in Mar 13.

- Automatic inspection for blooming mill products to cater to reputed customers. Expected to be commissioned in Feb 13.

Vasind Works

(31) Projects commissioned during FY 2011-12

- Natural Gas pipeline project (completed during Feb, 2012)

Gas pipe line of 7.6 km was laid down along the National Highway, replacing use of natural gas in lieu of LPG/Furnace oil.

(b) Projects under progress

- Colour Coating Line Project

Two colour coating line with an aggregate capacity of 0.225 mtpa are in progress and to be commissioned in FY 2012-13.

Tarapur Works

Upcoming Projects in 2012-13

- Upgradation of Cold Rolling Mill (TM1) to enhance production capacity from 0.05 mtpa to 0.225 mtpa.

- New Galvanizing Line (CSD5) with dual products of Galvanised and Galvalume Steel with an annual capacity of 0.2 mtpa.

- Upgradation of Cold Rolling Mill (TM2) to enhance production capacity from 0.06 mtpa to 0.1 mtpa.

- Upgradation of Colour Coating Lines (CCL-1 and CCL-2) to enhance production capacity from 0.180 mtpa to 0.276 mtpa.

 
SUBSIDIARY, JOINT VENTURE AND ASSOCIATE COMPANIES

Indian subsidiaries

(31) 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 Steel Limited achieved good progress in connection with setting up an integrated steel plant in the State of West Bengal. While 33 Kms boundary wall work was completed over 4300 acres of land at Salboni, JSWBSL commenced construction of residential complex named “Ankur” for employees to be accommodated during plant construction and operation. All major survey work has already been completed at the site. Power as well as water for construction are available at the site. A reputed Canadian and Chinese joint venture company, M/s. HATCH-CISDI International is preparing basic design and plant layout for a 10 mtpa integrated steel plant along with a 1,620 mw power plant at Salboni. The Company already received 75 mgd water allocation letter for sourcing water from Rupnarayana river and the route for laying a water pipeline has also been fi nalised. The work of ROW for the proposed 68 Kms water pipeline is in progress.

The drilling as well as three dimensional High Resolution Seismic Survey (3 DHRSS) have been successfully completed at Kulti-Sitarampur coal block by JSW Natural Resources India Limited In line with the MoEF clearance that has already been received for the steel plant, it is proposed to implement the project in phases, subject to satisfactory tie up of iron ore, to enable financial closure and approval of MoEF for mining activities.

Target date for start of first phase of commercial production in Bengal projects is FY 2015-16.

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 to obtain 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 HR/CR Slitter and cut to length facility with an annual slitting capacity of 5,00,000 tonnes. The Company processed 4,99,218 tonnes of steel during the FY 2011-12, as compared to 4,97,112 tonnes in the previous year.

During the previous year, JSWSPCL purchased three Slitting Lines and one Multi Strand Blanking lines from its fellow subsidiary JSW Steel Service Centre (UK) Limited. Out of which, the Company is in the process of commissioning one slitting line and identifying a suitable location to commission the remaining equipment.

4. Amba River Coke Limited (ARCL)

The Company has acquired 100% holding in ARCL to set up a 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. These projects are expected to be commissioned by March 2014.

It is also proposed to set up a 4 mtpa pellet plant in ARCL at an estimated project cost of Rs. 835 crores on similar terms as that of coke oven project. These projects will be taken up for implementation on receipt of requisite clearance and commissioned in 30 months.

Overseas Subsidiaries

(31) JSW Steel (Netherlands) B.V. (JSW Netherlands)

JSW Netherlands is a holding Company for USA, UK, Chile and Kanya based subsidiaries. It also has 49% equity holding of Georgia-based Geo Steel LLC, incorporated under the laws of Georgia. The Company also invested in the plate and pipe mill in the US, coal mining assets in the US, iron ore mining concessions in Chile and fixed assets at UK through the following step down subsidiaries.

(31) 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, USA based Coal Mining Operation.

Plate and Pipe Mill operation

During FY 2011-12, the Plate and Pipe Mill performance in the US has improved significantly as compared to that during previous year, mainly due to improvement in economic scenario, resulting in better capacity utilisation. In 2011- 12, the 3,31,763 net tones of plates and 66,168 net tones of pipes were produced with capacity utilisation of 33% and 12% respectively.

The Subsidiary Company undertook various debottlenecking and corrective measures in the production process, due to which it is expected that US operations would show improved performance.

Coal mining operation

JSW Steel Holding (USA) Inc. has 100% equity interest in coal mining concessions and barge load out facility in USA.

While some of the mines are currently operational, statutory clearance/permits for other mines are in advanced stage of approval.

It is expected to produce around 0.50 million tones of coal in the next financial year subject to approvals.

(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 2011-12, contract mining activity with a capacity of 1mtpa through dry process route was undertaken. The Company shipped twelve shipments of iron ore concentrate aggregating to 0.6 million tones. It is expected to produce around 1 million tones of iron ore concentrate in the next financial year.

Work on establishing a wet beneficiation plant is currently being pursued and necessary statutory and environmental approvals are awaited.

SFP, a subsidiary of SFM received maritime concession in April 2011 to develop a cape size port in North Caldera. The environmental and other regulatory approvals have been applied for and are being pursued with Authorities Concerned.

I JSW Steel East Africa Limited (JSWSEAL)

JSWSEAL was formed with the object of exploring mineral resources (manganese, iron ore and coal) and developing them to export in value-added form.

JSW Steel Netherlands BV holds 99% stake in JSWSEAL and JSW Steel (UK) Limited holds the balance stake of 1%.

JSWSEAL, signed MOU on January 11, 2012 for exploration of manganese ore with Government of Kenya. The agreement gives it the right to explore manganese ore in the Coastal Province of Kenya (around 22,000 sq. km.).

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.

JSW Natural Resources Mozambique Lda incorporated JSW ADMS Carvão Lda on October 8, 2010 wherein 85% stake is owned by JSWNRML. It has a mining licence in Zumbo District Tete Province. The Company initiated drilling exploration activities in this area.

C. Joint Venture Companies

(31) 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 in Georgia. Geo Steel produced 113453 tonnes of rebars and 117818 tonnes of billets during 2011-12. The net turnover was USD 79.43 million.

2. Rohne Coal Company Private Limited

The Company holds 49% equity in Rohne Coal Company Private Limited (JSW Group holds 69.01%, including that of the Company), which is a joint venture with three other partners (two partners from outside the Group). Forest clearance and mining lease proposal are being pursued with government authorities.

3. MJSJ Coal Limited

In terms of the Joint Venture Agreement to develop Utkal – A Gopal Prasad (West) thermal coal block in Odisha, the Company agreed to participate in the 11% equity of MJSJ Coal Limited, Odisha along with four other partners. The Government of India has allotted 1,520 acres of Gopal Prasad west area to MJSJ Coal Limited. Mahanadi Coalfi elds Limited, a public sector company holds 60% of the equity.

4. Gourangdih Coal Limited

Gourangdih Coal Limited (GCL) is a 50:50 Joint venture between JSW Steel Limited and Himachal EMTA Power Corporation Limited (HEPL) incorporated to develop and mine coal from Gourangdih, ABC thermal coal block in West Bengal. It is currently working on pre-mining activities. A mining plan was submitted to government authorities and is under consideration.

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, 21.33% by JSW Energy Limited and 3.67% by the Company, to design, manufacture, market and maintain services of mid to large-size supercritical steam turbines and generators of size 500 MW to 1000 MW.

The main plan was inaugurated for operation in February 2012.

6. Vijayanagar Minerals Private Limited (VMPL)

During 2011-12, VMPL supplied 0.66 million tonnes of iron ore from

Thimmappanagudi Iron Ore Mines (TIOM), vis-à-vis 2.2 million tonnes in the last FY 2010-11.

As per the Honourable Supreme Court’’s directive to stop all iron ore mining operations in Karnataka, mining activity of TIOM mines operated by VMPL has been stopped since July 29, 2011. VMPL’’s operations and financial results were affected due to the above reasons.

7. JSW Severfield Structures Limited and its subsidiary JSW Structural Metal Decking Limited

JSW Severfield Structures Limited (JSSL) set up a Greenfield project to design, fabricate and erect structural steelwork and ancillaries, including decking for construction projects with a total plant capacity of 35,000 tpa at Bellary in Karnataka. The Company produced a total of 20,384 tonnes during the year. The Company’’s order book stood at Rs. 178 crores (33,916 tonnes) as on March 31, 2012.

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, including shear connectors, for construction projects with a total plant capacity of 10,000 tpa at Bellary in Karnataka. It started its commercial production in October 2010. The Company has orders of around 1,33,914 square meters.

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 Centers in India.

The JV Company, JSW MI Steel Service Center Private Limited, proposes to set-up its first Steel Service Center in North India (NCR) with an initial installed capacity of 180,000 tpa (Phase-I) which will subsequently be enhanced to 500,000 tpa. The estimated project cost for Phase-I is pegged at Rs. 1220.000 millions and the estimated completion time is 12 months from date of completion of land acquisition.

The service centre will be equiped to process fl at products such as hot rolled and coated products with a view to offer just in time solutions to the automative, white goods, construction and other value added segments.

Associate Companies

(31) Jindal Praxair Oxygen Company Private Limited (JPOCPL)

The oxygen plants of JPOCPL have been working satisfactorily primarily to meet the requirements of steel plant operations at Vijayanagar Works. During 2011-12, the combined production of the oxygen plant module #1 and module # 2 of JPOCPL was: gaseous oxygen – 836 million Nm3; gaseous nitrogen – 275 million Nm3; Liquid oxygen – 25 million Nm3; Liquid nitrogen – 23 million Nm3 and Argon – 10 million Nm3.

2. JSW Ispat Steel Limited (JISL)

As approved by its members, the name of the Company was changed from Ispat Industries Limited to ‘’JSW Ispat Steel Limited’’ w.e.f. 28.06.2011.

During the year, the Company produced 2.39 million tones of HR coils and capacity utilisation achieved was 73%. The sales volume was 2.75 million tonnes with EBITDA of Rs. 11260.000 millions. The Net Loss for the corresponding periods after considering Exceptional items was Rs. 19300.000 millions.

The Board of Directors has taken note of the matters to which the Auditors of JISL has drawn attention in their report, regarding overdue trade receivables amounting to Rs. 2556.100 millions. The Board of Directors have also taken note that the management of JISL is confident of recovery and relying on this, no provisioning has been considered necessary by the Board in respect of this item.

AWARDS AND ACCOLADES

The Company and its employees received the following awards during the year:

(31) EEPC National Award for Export Excellence awarded by EEPC Kolkata: Gold Trophy for top Exporter for the year 2009-10, received on November 03, 2011.

2. EEPC National Award for Export Excellence awarded by EEPC Kolkata: Star Performer for the year 2010-11 received on March 24, 2012.

3. FKCCI Export Excellence Awards awarded by FKCCI Karnataka: Best District Exporter Award for the year 2010-11, awarded on June 15, 2011.

4. Visvesvaraya Industrial Trade Centre State Award awarded by VITC Karnataka for the year 2009-10 and 2010-11 Gold Trophy for Best Exporter, received on March 23, 2012.

5. SPJIMR Marketing Impact Awards (SMIA) 2012 awarded by SP Jain Institute of Management and Research: Second Prize for Best Practices and Current Thinking in Marketing, awarded on January 14, 2012.

6. Dun and Bradstreet Information Services: Best Company in Steel sector based on Total Income, Net Profit, Net Worth, Export, Market Capitalisation, Net Profit Margin, Return on Net Worth, received on April 26, 2011.

7. Ashok Leyland: Outstanding Performance Award for the year 2010-11 received on April 20, 2011.

8. Whirlpool: Certificate of Appreciation for the year 2010-11, received in November 2011.

9. Brakes India: Certificate of Performance for the year 2010-11 received on November 11, 2011.

10. Hyundai: Appreciation Award for the year 2011- 12 received on March 22, 2012.

11. National Sustainability Award awarded by Indian Institute of Metals: 2^nd prize in Integrated Steel Plants category for the year 2010-11 received on November 14, 2011.

12. CII-EXIM award 2011 awarded by Confederation of Indian Industries (CII): Commendation certificate for significant achievement, received on December 01, 2011.

13. International Convention on Quality Circle Chapters (ICQCC): Distinguished Category Award to “Genius Quality Circle” from SMS-1 received on September 14, 2011.

14. Spot Light Awards (Global Communication Competition) awarded by League of American Communication Professionals for its 2010-11 Annual Report- Bronze Award for excellence within its Competition Class.

15. EXIM Achievement Awards in the Category of Top 3 Exporter awarded by the Tamil Chamber of Commerce.

Individual and Team Recognitions:

16. 1^st Prize to Ms. Anita Dunga for Oral Presentation in ‘’Iron and Steel’’ Category for ‘’Study on Ladle Nozzle Choking during Liquid Steel Pouring from Ladle to Tundish at Continuous Casting’’ at 65^th Annual Technical Meeting, on November 16, 2011, at Hyderabad.

17. 3^rd Prize to Mr. Pranav Kumar Tripathi for Poster Presentation in ‘’Iron and Steel’’ Category for ‘’Optimisation of Submerged Entry Nozzle Design through ‘’Mathematical Modelling’’ at the 65^th Annual Technical Meeting, on November 16, 2011 at Hyderabad.

MANAGEMENT DISCUSSION AND ANALYSIS

Global economy 

Economic performance
 
From a positive beginning in 2011, the global environment turned adverse in the second half of 2011 owing to the turmoil in the euro zone and monetary imbalances in emerging economies caused mainly by surging commodity prices. Capital flows to developing nations declined by almost half in 2011 compared to 2010.
 
Europe seemed to enter a recessionary phase. The Euro Zone severely impacted economic performance of its trade partners. Growth in several major developing countries (Brazil, India, and to a lesser extent Russia, 
South Africa and Turkey) slowed partly in reaction to domestic policy tightening.
 
Despite questions being raised by rating agencies on the outlook of the US economy, it delivered a heartening performance with declining unemployment, rising retail sales and growing new home sales, among others.
 
Notwithstanding the relatively strong activity in the US and Japan, global economic trade and growth slowed sharply. Global GDP grew 3.9% in 2011, lower than 5.3% in 2010.
 
Industrial production
 
Global industrial production was impacted due to series of adversities. Industrial output growth declined in early 2011 against a marginal growth in the second half of 2010 due to adverse weather in Europe and the US. 
Besides, uncertainty relating to the sovereign debt concerns in high-income countries affected consumer confidence, delaying purchases of durable goods and businesses, which hampered an industrial recovery. Despite volatililty in the global economy, (global trade volume (merchandise and services) expanded 6.4% in 2011, which was 100 bps higher than the ten-year average)
 
Outlook
 
As per World Economic Outlook, global economic growth is expected to slow to 3.5% in 2012, largely because the euro area economy is expected to trip into a mild recession in 2012.
 
Growth in emerging and developing economies is expected to average 5.7% - a drop from the 6.2% growth in 2011. Despite a substantial downward revision, developing Asia is still projected to grow at 7.3% in 2012.
 
Inflation in the advanced economies is likely to ease to 1.9% in 2012 (2.7% in 2011) and to 6.2% in 2012 in emerging economies (7.1% in 2011) reflecting tempering of commodity prices due to subdued economic growth.
 
However latent risks of geo-political tensions affecting oil market, disruptions in global bond and currency market arising out of rising budget deficits and weather extremeties can prove deterrents to improving global 
prospects.Indian economy
 
Managing growth and price stability are the major challenges in macroeconomic policy making. In 2011-12, India found itself in the heart of these conflicting demands without corresponding initiatives towards economic growth.
 
As a result, the Indian economy grew at 6.5% in 2011-12, down from 8.4% in 2010-11. The GDP growth in 2011-12 was the lowest in the past nine years.
 
Global factors such as euro zone crisis, geopolitical disturbances and weather extremities contributed to the domestic economic slowdown. Domestic factors like monetary tightening and raising repo rate to control inflation slowed industrial investment and growth.
 
At the sectoral level, agriculture and allied sectors grew 2.8% in 2011-12 against 7% in 2010-11; the services sector grew 8.9% in 2011-12 against 9.3% in 2010-11; the industrial sector growth slowed to 3.4% in 2011-12 against 7.2% in 2010-11 and was primarily responsible for the slowdown of India`s economic progression. The economy`s resilience to shocks was owing to the services sector, which enjoyed the largest share with the most consistent growth. Industrial growth which crumbled, is likely to pickup by government`s National Manufacturing Policy to target a 25% share for Manufacturing in GDP is implemented.

Industrial sector – the stumbling block

Headline WPI inflation remained high at around 9% during 2011 for the following reasons:
 
* Higher prices of primary products (vegetables, eggs, meat and fish) due to increasing demand from growing middle class population.
 
* Persistently high international crude petroleum prices.
 
* Increasing global commodity prices.
 
To counter inflation, RBI tightened the monetary policy by hiking interest rates 13 times between March 2010 and October 2011, making borrowing expensive, consequently infrastructure projects become unviable and the manufacturing sector growth slowed during 2011-12. The fixed investment rate (Gross Domestic Fixed Capital Formation) declined to 29.5% in 2011-12 from 30.4% in 2010-11, impacting the steel demand.
 
Rupee depreciation
 
The Indian rupee was under stress as overseas investors pared their exposure to Asia`s third-largest economy, resulting in net inflows remaining under US$300 million in 2011. The rupee lost more than 14% of its value during the year, making it one of the worst performing currencies in Asia, eroding India Inc.`s profitability, widening India`s trade deficit and adversely impacting India`s Current Account Deficit.
 
Estimates for 2012-13
 
The government estimates a 7.6% GDP growth in 2012-13. However, inflation will continue to be a significant challenge for the government especially due to the recent hikes in excise duty, service tax, fuel prices and railway freight.
 
PLANT OPERATIONS
 
JSW Steel is India`s largest integrated steel manufacturer in private sector by capacity (11 mtpa) across four manufacturing locations:
 
* Vijayanagar Works (10 mtpa integrated steel facility), the world`s largest landlocked integrated steel plant
 
* Salem Works (1 mtpa integrated facility, rolling out long products for niche applications), the largest unit in India dedicated to special steels
 
* Tarapur and Vasind (value-added coated flat products), referred to as downstream facilities
 
The Company is among a few coveted integrated steel producers with a presence across the value chain of flats and longs.
 
2011-12 in retrospect
 
The government`s ban on iron-ore mining in Karnataka (July 2011) affected production at Vijayanagar and Salem units. Despite this constraint, the Company increased crude steel and rolled products (flats and longs) output.
 
The operational problem in the blast furnaces at Vijayanagar Works, primarily due to an inferior quality of iron ore, impacted volume growth. Crude steel production stood at 7.43 Million Tonnes against 6.43 Million Tonnes in 2010-11.
 
The Company, however, reported some remarkable achievements: a number of products received approvals from globally-respected customers, new high-value products were developed to substitute imported grades and the benefit of these is likely to reflect in 2012-13. Besides, a number of projects were commissioned to strengthen the Company`s operations.

(31) Vijayanagar Works – an aspiration
 
Vijayanagar Works is the Company`s flagship steel making facility with a 10 mtpa steel making capacity and unique related features.
 
* The first steel manufacturing unit with Corex technology in India.
 
* The only steel manufacturing unit to positively and responsibly alter the climatic condition of the neighbouring areas.
 
* Globally acknowledged as an innovation centre for the Indian steel sector
 
* Comprises the best technologies in every manufacturing unit, making it one of the most efficient global steel plant (in terms of conversion cost)
 
This state-of-the-art facility is driven by JSW`s corporate philosophy: `Question every convention, replace the often quoted `why` with the bolder `why not`.`
 
Preparatory section
 
Steel making has undergone a shift primarily due to an inadequate availability of quality raw materials at a reasonable cost. As a result, technologies and practices now utilise every ounce of resources.
 
The transformation is visible in a simple reality: the primary feed to the hot metal making furnaces has changed from coke/coal and iron ore lumps to prepared burden (precooked inputs). The primary role of the preparatory section is grouped under three critical heads:
 
* Improve sub-standard raw material quality to make it usable as furnace feed.
 
* Utilise inputs which were earlier considered waste, namely coal and iron ore fines.
 
* Utilise process waste to ensure that every gram of metal derives commercial value.
 
Beneficiation plant
 
JSW is the first steel company in India to develop a large-scale, low-grade iron ore beneficiation process. The unit processes low-grade ore with high gangue content. It ensures iron ore availability for steel production despite depleting reserves of high grade iron ore. The basic and process flow of beneficiation plant 2 was completed in-house with support of the equipment manufacturer.
 
Key initiatives in 2011-12
 
* Initiated process changes for the beneficiation of low grade iron ore (Fe2O3 56-57%).
 
* Improved beneficiated ore (superior chemistry and consistent grain size) which improved sinter and pellet quality.
 
Road map for 2012-13
 
Commission Beneficiation Plant phase 2, ensuring that more than 80% of the ore used in steel manufacture is beneficiated using low grade fines.
 
Coke oven
 
Vijayanagar Works boasts of the single largest coke manufacturing unit in a single facility with an annual capacity at 4.62 mtpa. In the coke making section, the Company adopted the vibro-compacting technology at its coke oven units, for improved product quality and higher productivity. Besides, the indigenously developed pilot coke oven plant – the first-of-its-kind in India - facilitated coal blending from diverse sources to develop a superior product and alvaniz production costs.
 
Achievements, 2011-12
 
* Commissioned two coke oven batteries, expanding coke production to 11,300 TPD.
 
* Increased coke production 51% over the 2010-11 level; coke purchase from the open market declined substantially saving production costs.
 
* Emerged as the first Indian steel producer to successfully produce coke with Mozambique coals and Teck coals from Canada.
 
Key initiatives in 2011-12
 
* Developed a number of coal sources (4-Countries) to de-risk an excessive dependence on a single source.
 
* Coal blend changed in coke making, which reduced ash content in coke by about 100 bps, reducing the fuel rate in the blast furnace during iron making.
 
* Improved coal: coke ratio in coke making from 1.41 in 2010-11 to 1.37.
 
Road map for 2012-13
 
* Optimise the coal mix procurement from various sources to reduce production costs.
 
Pellet plant
 
The pellet plant was originally conceived as the feeder unit for the Company`s iron making corex unit at Vijayanagar Works. Over time, pellets emerged as an important constituent of the blast furnace burden, improving productivity and output.
 
The Company possesses the capacity to manufacture 9.2 mtpa pellets across two units. This infrastructure comprises India`s first dry process pelletising plant, a technology ideally suited to soft iron in the Bellary-Hospet region. The technological superiority of the unit is reflected in the following:
 
* It is the only plant to use corex gas instead of costly furnace oil and natural gas.
 
* It is only pellet plant worldwide which makes pellets out of iron ore with high alumina content.
 
Achievements, 2011-12
 
* Commissioned Pellet Plant 2 with a capacity of 4.2 mtpa in December, 2011.
 
Key initiatives in 2011-12
 
* Stabilised operations of Pellet Plant 2.
 
* Increased the use of beneficiated ore (consistent grain size and superior chemistry), improving pellet quality and blast furnace productivity, while reducing fuel and slag rates.
 
* Increased use of pellets in the blast furnace burden feed increased the use of nut coke in the blast furnace.
 
Road map for 2012-13
 
* Achieve optimum capacity alvanized at pellet plants to increase pellet alvanized in the feed for the iron making zone.
 
Sinter plant
 
The Company can cumulatively manufacture 12.95 mtpa sinter as feed for its blast furnaces. Its third sinter plant (5.75 mtpa) is the largest of its kind in India. The cumulative sinter production can provide an average 80% feed for all four blast furnaces.
 
Achievements, 2011-12
 
* Increased sinter composition in the blast furnace burden from 67% in 2010-11 to about 80%, reducing the fuel rate in the blast furnace and improving product quality.
 
* Commissioned Sinter Plant 4 (2.60 mtpa) in July 2011 .
 
* Sinter Plant 3 production peaked at 4.9 lac tonnes in January 2012 (higher than the labeled monthly capacity).
 
Key initiatives in 2011-12
 
* Stabilised Sinter Plant 4 and ramped production to 76.5% of capacity utilisation; return fines from in-house customers decline.
 
* Commissioned a 1.4 mtpa lime plant to provide consistent and quality 
calcined lime input for improved sinter quality.
 
* Rectified issues with the process fan and ESPs in Sinter Plants 1 and 2, improving plant availability.
 
Road map for 2012-13
 
* Consolidate operations of all four units
 
* Install a mixing unit for homogenous material mixing of feed to the sinter plants.
 
* Install a waste heat recovery mechanism in the sinter cooling areas of sinter plants 1, 2 and 3, to generate steam for use in the blast furnace and other shop-floor processes.
 
Iron making zone
 
In this zone, finite natural resources namely iron ore and coal are burnt together to make iron also known as hot metal. The zone is the largest cost centre for any steel manufacturer. Hence, the focus here is to alvaniz resource consumption, reduce costs and ensure maximum plant availability for highest output.
 
JSW Steel is credited to have walked the road less traveled. When steel companies globally adopted the tried and tested blast furnace route for hot metal, JSW emerged as the first Indian company to use the untested Corex technology and only the third in the world. Today, it is the best-run Corex unit globally, emerging as a learning institution for companies ready to adopt this green technology. For successive expansions, the Company deployed blast furnaces and is credited with commissioning India`s largest blast furnaces.
 
Currently, the Vijayanagar works has a 9.80 mtpa hot metal capacity of which 1.6 mtpa is through the Corex route, the balance comes from four blast furnaces.
 
Achievements, 2011-12
 
* Increased hot metal production 16% from 6.19 million tonnes in 2010-11 to 7.21 million tonnes.
 
* Achieved highest monthly production of 92,807 tonnes (2.70 t/m3/day productivity) in BF-1.
 
* Achieved highest power generation from TRT: 12.28 MW (Nov 2011).
 
* Achieved highest monthly production of 254,869 tonnes at BF-4 in December 2011 with high PCI average rate 135 kg/thm.
 
Key initiatives in 2011-12
 
(31) The 3.8 mtpa facilities (comprising the Corex units and BF-1and2)
 
* Altered the slag regime through an optimum mix of inputs to maintain the optimum carbon rate.
 
* Re-routed the water treatment plant underground pipelines to above the ground level to eliminate underground water leakages.
 
* Commissioned Tunnel Ventilation systems (Corex-1and2) for easy operation and maintenance activities.
 
* Installed higher capacity (15 M3) softener plant at Corex-2.
 
* Used 44,000 tonnes under-size coke (Nut Coke) in hot metal manufacture in the Corex units.
 
* Introduced variable speed drives for ID fans at coal drying plant in the 
Corex unit,saving energy.
 
* Installed the copper cooling plate in BF-1 to enhance cooling and eliminate hot spot/ cracking of furnace shell.
 
* Commissioned the Boiler 1 and 2 common steam header.
 
* Upgraded the SCADA monitoring system from 250 screens to an unlimited version for real-time monitoring of the progress of ongoing projects like additional de-dusting system and sinter fines transportation conveyors at BF#2.
 
* Installed a hydraulically-operated tilting runner in Cast House #4 of BF-1 to enhance its availability.
 
* Introduced a standby hydraulic drive for furnace charging conveyor at BF-1; enhancing plant availability.
 
* Modified the air-cooling system in the main iron trough cooling system in BF-1 to enhance runner life.
 
* Increased sinter ratio in BF-1 burden to 69% and in BF-2 burden to 78%, increasing furnace productivity.
 
* Commissioned the U-seal for GCP network line to minimise shut down and start up time.
 
b) The 6.8 mtpa facilities (BF-3) – India`s largest blast furnace
 
* Used anthracite coal for PCI Injection, optimising production cost.
 
* Charged small sinter in the furnace, reducing return fines and production costs.
 
* Installed 5mm screens to improve net sinter availability.
 
* Commissioned and stabilised operations of Mill for coal grinding to improve PCI Coal availability for BF-3and4.
 
* Commissioned and stabilised operations of the Oxycoal Injection System.
 
c) The 10 mtpa facilities (BF-4)
 
* Installed diaphragm type instruments in BF-4 SGP, reducing breakdowns and 
improving equipment availability.
 
* Converted the manual ON/OFF switching system for BF-4 lighting into auto mode managed by PLC controls, alvanized energy consumption.
 
* Reduced water consumption by regularly recirculating seepage water to the cooling tower.
 
* Fine tuned the BF-4 Top Recovery Turbine to maintain steady furnace top pressure; improved power generation of TRT by maintaining a steady load on the generator.
 
* Provided emergency power supply to the common blower house from BF-3 and 
BF-4, ensuring emergency power to the blower auxiliaries during power failure.
 
Road map for 2012-13
 
(31) The 3.8 mtpa facilities
 
* Install the Aerial Gas distribution system at Corex Reduction Shaft Bustle; upgrading the DCS operating systems from UNIX to Windows-based system in Corex-1and2.
 
* Upgrade WTP MCC and DCS Remote I/O panels at Corex-2 for better plant availability
 
* Upgrade Corex-2 SGP PLC (MP200) to DCS (AC450) for better speed and plant availability 
 
* Change the charge distribution system in BF-2 to Bell less top (BLT).
 
* Upgrade the BF-1 Turbo Blower to BF-2 Turbo Blowers efficiency; upgrade BF-1 boiler.
 
b) The 6.8 mtpa facilities (BF-3)
 
* Commission Stove-4 to increase hot blast temperature.
 
* Commission online granulated slag transport system.
 
c) The 10 mtpa facilities (BF-4)
 
* Achieve more than 95% slag granulation.
 
* Replace GB-03 in SGP (EAST) with belt conveyer.
 
Steelmaking section
 
Hot metal emerging from Corex and Blast Furnace can-not be used as such. There are undesirable impurities which are present, needs to be removed. 
Also for each application separate chemistry is required.
 
A steelmaking section has two units combined into one.
 
* One, where the hot metal is cleaned of impurities -primarily sulphur, 
phosphorus and elements of air which damage the strength and other qualities of steel.
 
* Two, where like a large chemistry work shop where various grades are created by adding alloys in a particular combination to produce steel suited for specified applications.
 
The steelmaking section at Vijayanagar Works is unique for its volume management capability. It is India`s only steel melting shop which has a capacity to produces 9.80 mtpa of steel with a combination of seven converters and seven casters (SMS infrastructure under Project Cheetah and Project Falcon).
 
Achievements, 2011-12
 
* Commissioned Converters and Casters in April 2011 to enhance steelmaking capacity at Vijayanagar to 10 mtpa.
 
* Non-conformity declined from 3.93% in 2010-11 to 1.50%.
 
* Successfully completed four heats of auto grade steel earlier imported.
 
* Achieved 102 heats on January 19, 2012 in SMS 2, a benchmark in operational efficiency.
 
* Evolved the product mix in favour of value-added products.
 
* Commissioned a 0.2 mtpa mill-scale briquetting facility, which will be used as a coolant in steelmaking. It is also an important waste management and environment management initiative.
 
Key initiatives in 2011-12
 
* Introduced 22 product grades – two for long products, seven API grades, six IF grades and the rest being transport and export grades.
 
* Improved the life of the ID fan in SMS 1 from about 300400 heats to about 
2,000 heats
 
* Altered the rollers being used in the SMS units, enhancing roller life.
 
* Stabilised operations of SMS 2 through intelligent equipment management, facilitating proper material flow between ladle furnaces and casters and ensured optimum plant alvanized.
 
* Utilised slurry and dust from the SMS equipment along with flux; evaporated the mixture to generate feed for the micro-pelletisation unit.
 
* Implemented close to 50 improvement projects suggested by JFE, strengthening production process and improving performance parameters.
 
Road map for 2012-13
 
* Design software for automated equipment management (matching ladle furnaces with casters) to alvaniz steel output.
 
* Introduce a ladle furnace and a caster in SMS 1 to increase the steelmaking capacity of that unit.
 
* Increase the weight per heat to 180 kgs from the current average of 165 
kgs.
 
* Install a sub-lance online temperature and quality measurement and correction system to improve productivity by 1.5 heats per day per caster.
 
* Entered into a partnership for an improved waste processing system to scientifically separate iron content from slag in the SMS facilities - improving iron recovery.
 
* Improve the desulphurlsation process to eliminate LHF with the RH - 
resulting in superior steelmaking and cost saving.
 
Rolling section
 
These facilities add value to basic steel forms namely slabs, billets and blooms (output from the steel making units) to create user-convenient forms; product grades (thickness and sizes) are customized to user applications; mill productivity is of prime importance to product quality and organisational profitability.
 
The uniqueness of the rolling mill at Vijaynagar Works is its capability to produce the widest product range in the long and flats segments. For example:
 
* HSM 2 is the widest hot strip mill in India, capable of rolling products more than 2 metres wide and a thickness range between 1.2 mm to 25.4 mm, creating a huge product basket.
 
* The CRM complex is capable of rolling the widest product range, catering to diverse and niche applications namely auto grade steel (the outer body, IF steel, among others).
 
* The BRM/Rebar mill produces a wide TMT bars basket between 8 mm to 40 mm.
 
* The WRM produces a wide product range from 5.5mm to 22mm and highest coil weight of 2.5 tonnes.
 
Hot strip mill: The Company possesses two hot strip mills with a combined label capacity of 6.7 mtpa. The first unit (HSM 1) is capable of rolling up to 1350 mm width while the second unit (HSM 2) upto a width of 2,100 mm which is the widest mill in India, and technologically superior to the first mill, positioning it as the first mill-of-its-kind in India. These units possess capabilities that create an unmatched product basket - the largest by any Indian steel manufacturer.
 
Achievements, 2011-12
 
* Rolled auto grade steel in the unit which was otherwise imported.
 
* Optimised gas consumption from 305 Mcal per alv of steel to 285 Mcal per alv of steel largely due to better furnace operation and maintenance practices in HSM 1
 
* Improved yield by 0.2%, cobbles.
 
* HSM-2 plant operated at higher than the labeled capacity in some months.
 
* Achieved a prime yield of 98.55% against 94.94% in 2010-11; reduced the cobble rate.
 
Key initiatives in 2011-12
 
* Replaced conventional rolls with HSS rolls in HSM 1 (superior rolls), optimised roll consumption, minimising changeover time and improving product and surface quality
 
* Installed a fume exhaust system at the finishing stand in HSM 1 to capture dust generated, an environment management initiative.
 
* Installed an IMS (Isotope Measuring System) gauge at HSM-1 to minimise shape-related defects in the product.
 
* Completed Level 2 automation in reheating furnace of HSM 2 in September 2011and streamlined furnace operations which reduced heating losses.
 
* Implemented 8-10 projects in HSM 2 where manual work was replaced with automation and additional interlocks were added to streamline plant operations.
 
* Implemented SPTS module (Level 3 automation) in HSM 2 – all modules from order to dispatch – it captured realtime data on the system.
 
* Implemented the coil yard management IT solution at the HSM2 coil yard - the coil yard is monitored on a realtime basis, every finished coil is mapped, coils stacked in the stock yard are remotely identified based on diverse parameters (product specification, customer name, destination, among others), these are populated on the dashboard of the crane operator for accurate outward dispatch – eliminating incorrect material movement and improving operational safety by eliminating manual intervention.
 
Road map for 2012-13
 
* Install a 1 mtpa hot skin pass mill for rolling auto grades as customers require products with close tolerance (shape and dimension tolerance).
 
* Commission a high-end grinding machine with an online inspection and grinding facility
 
* Implement a crop-end optimisation project to improve prime yield.
 
* Implement the coil yard management solution in HSM 1 coil yard.
 
* Implement Phase II at HSM 2; add a reheating furnace, a roughing mill, a 
finishing mill and a coiler which will expand the unit`s operating capacity from 3.50 mtpa to 5 mtpa.
 
* Install an online surface inspection equipment in HSM 2 for real-time material inspection – essential for automotive customers who demand close tolerance levels.
 
* Create a slab tracking system similar to the coil tracking solution in HSM 2.
 
Cold rolling mill: This cold rolling mill is state-of-the-art with contemporary technology, positioning it as among the few of its kind globally. It is the first-of-its-kind in India with complete automation. This is the first global instance of a single-stand skin pass mill in the electrolytic line. The shape-metre in the tail end of the skin pass mill for superior flatness to the rolled products is a pioneering technology in India and a rare feature in the global steel industry.
 
Achievements, 2011-12
 
* Rolled out four new grades successfully for the outer body of automobiles for global OEMs, a first time by JSW Steel.
 
* Commercialised five new grades for internal automobile components.
 
* Certified for ISO/TS 16949:2009 quality management system – mandatory for supply to the automotive industry.
 
* Improved prime yield from 90.19% in 2010-11 to 90.79%.
 
* Optimised roll and rolling oil consumption significantly, thus optimising production costs.
 
Key initiatives in 2011-12
 
* Underwent intensive process and technology training/ know-how from JFE to produce outer body steel grades (with extremely stringent surface and quality requirement).
 
* Implemented more than 50 continual improvement projects focusing on productivity, quality, cost, delivery and safety-related issues.
 
Road map for 2012-13
 
* Increase auto grade steel volumes for internal components.
 
* Commercialise auto grade steel for outer body panels.
 
Wire rod mill: The Company`s wire rod mill has a number of unique features which positions it as a new benchmark in manufacturing wire rods in India
 
* It is the fastest of its kind in India (rolling speed at 110m/ sec in 5.5mm).
 
* It develops the largest product range (5.5 mm – 22 mm) and provides the maximum yield.
 
* It is also the only mill in India with retarded normal and accelerated cooling setups air cooling conveyor, allowing it to roll high carbon steel seamlessly.
 
* It is the only Indian unit which manufactures wire rods with a tolerance level +/- 0.10 mm in diameter and +/-0.15mm ovality.
 
* It manufactures cold headed grade for the high-end bright bar industry - making JSW the only company in India to offer this grade.
 
* It produces 2.5T/coil, the heaviest in India, and can produce 22 mm dia coil which is also the highest wire rod coil size in the country.
 
Achievements, 2011-12
 
* Increased average monthly production by 9%.
 
* Improved plant utilisation from 72.71% to 78.49%; power consumption decline by 12 kwh/tonnes and cobbles reduced by 0.27%.
 
* Launched a new grade in the electrode steel segment which received BIS certification.
 
Key initiatives in 2011-12
 
Increased the production of thinner sizes, strengthening business profitability.
 
* Increased production volumes for electrode grade steel.
 
* Adopted unique maintenance practices which significantly reduced cobbles, reduced breakdowns, increased mill availability and reduced power consumption.
 
* Increased roll hardness after collaborating with vendors, increasing roll life, reducing roll consumption and saving changeover time.
 
Road map for 2012-13
 
* Increase production of value-added products with a special focus on electrode grades and high-carbon grades.
 
* Install a wire tying compactor which will consume in-house wire against strapping (purchased from vendors) to pack finished products - a cost saving initiative.
 
* Install section gauges on the intermediate and finishing rolls, resulting in perfect sizes of the end product and lesser cobble generation.
 
Bar rod mill: This is the highest speed and widest range bar rod mill in India, capable of manufacturing a wide product mix (TMT, angle, engineered rounds, square round corners) and in multiple sizes (from 8mm to 40mm). The versatility extends to the product strength – the mill can develop products up to a maximum strength capability of 1150 mpa. Additionally, the mill is equipped with slit technology which forms a horizontal 8, which is then slit to make two re-bars at a time, doubling productivity of smaller size TMT bars (8 mm, 10 mm, 12mm and 16 mm). Through this mill, JSW pioneered this technology globally.
 
Achievements, 2011-12
 
* Grew average monthly production by 60%, gross and prime yields increased 109 bps and 229 bps respectively.
 
* Improved plant alvanized by 10%; power consumption declined by 36 
kwh/alv, and cobbles reduced by 0.66%.
 
* Manufactured 500D grade TMT rods (earthquake-resistant).
 
* Commenced commercial supply of corrosion-resistant steel grade TMT bars.
 
Key initiatives in 2011-12
 
* Added a water box in the mill for small sizes, increasing mill speed (from 25 mtrs per second to 30 mtrs per second) and productivity without generating cobbles (prevalent in manufacturing thinner sizes).
 
* Adopted a length alvanized practice, installed a software to calculate the length of the entire rod and cut the length in a manner than reduced tail ends.
 
* Reduced shear length at the multiple rolling stands, alvanized head and tail end wastage and improving yield.
 
* Optimised process parameters in maintaining closer yield strength tolerances - this increased mill speed and ensured that no product was rejected at the customers end.
 
* Changed the roll pass design and steel grade used for the roller, increasing its working life alvanized roll changing time and reducing roll consumption.
 
* Adopted unique maintenance practices. Road map for 2012-13
 
* Add a water box to the mill for thicker sizes (25 mm and above) to increase mill productivity and product quality
 
* Modify the single rolling process for thicker sized rods (20 mm) to accommodate the slitting technique - this will significantly enhance production
 
* Install a billet welder which will weld billets together, facilitating continuous rolling, eliminate tail ends and improve gross yield
 
* Expand furnace capacity to match the unit`s rolling capacity.
 
(2) Salem – India`s largest special steel unit (Rolled longs segment)
 
Salem works is a 1 mtpa integrated steel manufacturing facility, specialising in manufacturing high value-added steel for critical application in the automobile and power sectors. This unit focuses on value addition in the long steel segment.
 
Achievements, 2011-12
 
* Increased bar and rod mill production by 1.5% from 0.341 million tonnes in 2010-11 to 0.343 million tonnes; blooming and billet mill production increased by 254% from 0.028 million tonnes in 2010-11 to 0.099 million tonnes.
 
* Increased sinter productivity to 1.50 t/m2/hr (above designed capacity) from 1.23 t/m2/hr by innovative methods, reducing lump ore consumption in BF.
 
* Increased pulverised coal injection in blast furnace from 100 Kg/ tonne of hot metal in 2010-11 to 125 kg/ tonne of hot metal.
 
* Increased charge to bloom yield at steelmaking shops from 85% to 85.75%.
 
* Commissioned Phase II of the blooming mill facility in June 2011.
 
* Reduced specific plant energy consumption from 8.5 Gcal/ tonne of crude steel (April 2011) to 7.5 Gcal/ tonne of steel (February 2012) (inclusive of Captive Power Plant and Air Separation Plant).
 
* Generated 30MW of power (23MW in 2010-11) through the waste heat steam generation system by accurate process control, improved ID fans design and modified battery – 3; at coke oven plant set a new benchmark for the unit.
 
* Achieved a 99% availability of the CPP plant excluding planned stoppage through improved operation and maintenance practices.
 
* Received approvals from Indian and overseas manufacturer and from the railways for spring steels.
 
Key initiatives in 2011-12
 
Preparatory section
 
* Increased usage of low cost coal up to 15% in the coal blend (earlier 10%) for coke-making, reducing coke cost.
 
* Introduced anthracite coal as sinter feed to overcome the fuel shortage (coke breeze) in the sinter plant.
 
* Utilised settling pond dust of the coke oven (containing about 35% carbon) in sinter making.
 
* Used crushed EOF slag as hearth layer in a innovative technique (patent applied for) in December 2011, which was further increased by 30% by the end of the year.
 
* Increased the use of burnt lime in the sinter feed, improving sinter quality (permeability) and in turn increased blast furnace productivity - burnt lime powder addition stood at 40 kgs per tonne against the industry average of 25 kgs per tonne.
 
* Increased sinter usage in the blast furnace from 60% in 2010-11 to 70%, enhancing blast furnace productivity and product quality.
 
Iron and steelmaking sections
 
* Modified supersonic lance operations which improved oxygen efficiency and minimized loss; minimised metal loss during flying-tundish operations in continuous casting by accurate process control – these factors improved steel productivity.
 
* Vaccum degassed 83% of heats to increase alloy steel production in response to the growing demands from the automotive and energy sectors.
 
* Introduced the 4-port nozzle to improve centre soundness of `as cast` structure of continuous cast blooms; this reduced internal rejections of blooms at the blooming mill.
 
Rolling section
 
* Ramped up Bar and Rod Mill (BRM) production to an average of 1,050 TPD.
 
* Modified the cooling bed at the BRM, improving surface quality and increasing plant availability; overall product quality increased as rejections declined from 3% of production in 2010-11 to about 0.6%.
 
* Introduced tungsten carbide rings in the finishing stand of the BRM facility for flats which increased roll life from 100 tonnes per pass to 400 tonnes per pass.
 
* Minimised head end material loss from 3.5 mtrs to about 150 cms, enhancing plant productivity.
 
* Implemented suitable modifications in the reversible mill (part of the blooming and billet mill), strengthening its capability to generate a wider product basket.
 
* Produced 10,908 tonnes of spring steel flats in Jan 2012 -highest production volume by the unit in a single month for spring steel flats.
 
Product development in 2011-12
 
* Ultra low sulfur steel for sour gas pipelines.
 
* T 22 – alloy steel for boilers with IBR approval.
 
* Developed new grades like 2CrMo (for Ashok Leyland, Chennai), MHM+B (for BEML, Bangalore), 30MnB4 (for Blue stamping, Faridabad), 40CrMo4H (for Bharat Forge), 10B35 wire rods (for Sundaram Fasteners) and SMn443 (for Bharat Forge).
 
* Developed bearing grade steel and supplied samples to customers for approval; received approval for 2-3 grades of bearing steel from customers.
 
* Developed large global and Indian auto-component manufacturers as customers, received product approvals from them; commercial production to commence in 2012-13.
 
* Received approvals from Hyundai (through ILGIN) and Ford Motors (through 
Sundaram Fastners) for multiple special grades.
 
* Developed new sections like 101.6 x11.11mm; 76.2x26.95mm; 100x23mm - Parabolic springs - 80x28, 80x30, 80x24mm, 75x10mm; 90x20mm - for Kamaz Vectra. 30mm wire rods through GC for fastener application and 56mm bars at BRM.
 
* Established RandD sub-centre with approvals from the Indian government (three patent applications filed already).
 
Project implementation
 
* Commissioned a 120/40 T crane at the SMS unit to improve material handling of molten steel.
 
* Initiated trials of the new automatic inspection line in the BRM unit for bars <60 mm.
 
* Initiated the commissioning of a waste heat recovery boiler at the coke oven units which is expected to generate about 6-7 MW of power.
 
* Purchased a loco to facilitate hot metal transfer from the blast furnace to the steel melting shop.
 
* Extended the shed for lime storage, increasing material storage at the plant site and eliminated demurrage charges otherwise paid to port authorities.
 
* Commissioned a liquid nitrogen system in the air separation plant as a backup system for the EOF and SMS units; minimised plant stoppages due to the shutdown of the air separation unit.
 
Road map for 2012-13
 
* Receive approvals from OEMs in the automotive, heavy engineering and other sectors.
 
* Increase capacity utilisation of the blooming mill and increase special steel production.
 
* Extend the two bays at the SMS unit.
 
* Complete the shed extension at the blooming mill, facilitating the storage of increased finished products.
 
* Complete online automated inspection system (Phase II) for the blooming mill.
 
* Extend the material and finished goods storage shed.
 
* Install the reducing and sizing block (Kocks Block) at the BRM unit to ensure that size, dimensions and surface quality are within the stringent tolerance levels specified by OEMs.
 
* Concrete all roads within the plant.
 
* Install a wagon tippler and railway siding inside the plant for seamless 
movement of incoming material.
 
* Install a new boiler in the coke oven unit which will enhance the WHRB steam generation.
 
* Utilise sensible heat from coke ovens to reduce the moisture content in final coke.
 
* Secure product approvals from large global and Indian consumers of special steels which are under different stages of evaluation
 
* Enter into new special steel grades which cater to diverse sectoral applications
 
(3) Downstream units – Special steel units (Rolled flats segment)
 
JSW`s Tarapur and Vasind facilities convert steel into branded steel. These plants source steel slabs and HR Coil/ CR Coil from the flagship Vijayanagar facility and offer a diverse product basket comprising HR plates, CRCA products, galvanised, plain and corrugated products and colour-coated products for multi-sectoral applications which are sold either through the Company`s retail network.
 
JSW Steel possesses India`s one of the largest galvanised steel capacity;it is the only Indian facility with the prestigious Galvalume certification; its colour-coated facility offers more than 200 shades of colour-coated galvanised and galvalume products; it provides any material shade on-demand within three weeks.
 
Achievements, 2011-12
 
Tarapur
 
* Achieved the highest galvanising and Galvalume production at 4.66 lacs tonnes. It includes 1.20 lac tonnes Galvalume products which was also the highest ever.
 
* Produced the largest volume of galvanisin export hard steel at 1.65 lacs tones.
 
* Registered the highest production of colour coated product at 1.77 lacs tones.
 
Vasind
 
* Grew GI production by 6% from 4.03 lacs tonnes in 201011 to 4.29 lacs tones; yield improved by 0.6% over the previous year`s benchmark.
 
* Converted the furnaces of CGL1, CGL2, HRM, ARP and other utilities like alloy furnace, hot air drier to use natural gas (R-LNG) in February 2012 - a cleaner (free from CO2 and moisture) and cost-effective fuel.
 
Key initiatives in 2011-12
 
Tarapur
 
* Enhanced the capacity of CSD4 galvanising line which produces galvanized hard steel for exports.
 
* Installed VVVF drives at TM2 in fume exhaust blower, coolant pump, motor ventilation blower and fume exhaust blower in TM6; power consumption in the mills is reduced.
 
* Optimise operational process and increased efficiency with highest-ever average line speeds; reduced the power and LPG consumption by 3.8 units/tonnes and 1.6 Kgs/ tonnes respectively
 
* Achieved the highest-ever plant utilisation, installed VVVF drive in the pump house and blowers; replaced some underloaded motors from delta to star 
- as a result, power and LPG consumption reduced in the colour-coated line by 2.3 units/ tonnes and 2.6 Kgs/ tonnes respectively.
 
* Installed VVVF drive in the condensate extraction pump; reduced auxiliary power consumption in the power plant.
 
Vasind
 
* Converted the radiant tube furnace firing to pulse firing system in the galvanising lines which improved heating performance and reduced fuel consumption.
 
* Welded together the radiant tube flanges in the RTF section of the galvanising lines (earlier bolted together) which eliminated leakages and improved furnace health.
 
* Installed doctored scrappers to remove adhere zinc on briddle rolls; reduced dent defects and increased yields.
 
* Initiated work on installing two colour coating lines for appliance grade products (75,000 tpa capacity) and commercial grade products (150,000 tpa capacity) to meet the expanding market demand.
 
* Commissioned the pickling steam condensate recovery system which optimises fuel consumption.
 
*  Implemented numerous energy conservation initiatives towards energy conservation; such efforts were appreciated by the Confederation of Indian Industry during its energy audit under the `Perform, Achieve and Trade` scheme.

Tarapur
 
* Upgrade Cold Rolling Mill –TM1 with annual capacity of 0.225 mtpa.
 
* New Galvanising Line - CSD5 with dual products of alvanized and 
Galvalume Steel with annual capacity of 0.2 mtpa.
 
* Upgrade Cold Rolling Mill- TM2 from DC drives to AC drives to increase production from 0.06 mtap to 0.1 mtpa.
 
* Upgrade colour coating lines - (CCL1 and CCL2) with RT to enhance production capacity from 0.18 mtpa to 0.276 mtap.
 
Vasind
 
* Commission railway siding to facilitate seamless and cost-effective transportation of raw materials and finished goods.
 
* Commission of two new colour-coated lines by January 2013.
 
* Implement the CGL1 modification to make DD, EDD and IF grade GI to meet market needs. Commission the inline Skin Pass Mill, furnace modification and inline oiler by September 2012.
 

UNSECURED LOAN

Unsecured Loan	As on 31.03.2012 (Rs. In Millions)	As on 31.03.2011 (Rs. In Millions)
Long Term Borrowing
Bonds
2,744 Zero Coupon Foreign Currency Convertible Bonds (FCCB) of USD 1,00,000 each	0.000	12252.000
Term Loan
Rupee Term Loans from Banks	0.000	9000.000
Foreign currency Term loans from Banks	22373.300	1339.500
Long Term Advance from a Customer	1284.800	3564.000
Deferred Payment Liabilities
Deferred Sales Tax Loan	1116.500	1116.500
Short Term Borrowing
Foreign currency loan from Banks	4577.800	10451.900
Total	29352.400	37723.900

STANDALONE UNAUDITED FINANCIAL RESULTS FOR THE QUARTER AND NINE MONTHS ENDED 31^ST DECEMBER, 2012

(Rs. In Millions)

Particulars	Unaudited	Unaudited	Unaudited
	Quarter Ended	Quarter Ended	Half Year Ended
	31.12.2012	30.09.2012	31.12.2012
Income from operations
a) Sale of Products
- Domestic Turnover	76559.500	75377.900	235428.700
- Export Turnover	14649.400	21194.600	51450.300
Total	91208.900	96572.500	286879.000
Less: Excise Duly	8459.800	8235.200	25490.900
Net Sales	82749.100	88337.300	261388.100
b) Other Operating Income	175.400	371.700	621.400
Total Income from operations (net) {a+b}	82924.500	88709.000	262009.500
Expenses
a) Cost of materials consumed	53379.000	61895.800	173207.500
b) Changes in inventories of finished goods, work-in-progress and stock-in-trade	157.800	(5348.600)	(7064.700)
c) Employer benefits expense	1604.100	1758.500	5104.200
d) Depreciation and amortisation expense	4975.100	4811.700	14464.600
e) Power and Fuel	4926.200	4959.100	15005.300
f) Other Expenses	9721.300	10194.700	29641.700
Total Expenses	74763.500	78269.200	230358.600
Profit from Operations before Other income. Finance Costs and Exceptional item	8161.000	10439.800	31650.900
Other Income	566.100	782.600	2071.400
Profit before Finance Costs and Exceptional Items	8727.100	11222.400	33722.300
Finance Costs	4545.700	4207.500	12819.800
Profit after Finance Costs bat before Exceptional Items	4181.400	7014.900	20902.500
Exceptional Items	(3274.100)	4223.800	(4970.800)
Profit before Tax	907.300	11238.700	15931.700
Tax Expense	(460.000)	3016.100	3651.800
Net Profit after Tax	1367.300	8222.600	12279.900
Paid up Equity Share Capital (face value of Rs. 10 per share)	2231.200	2231.200	2231.200
Reserves excluding Revaluation Reserves
Earnings per share (EPS)
- Basic (Rs.)	5.76	36.49	53.95
- Diluted (Rs.)	5.76	36.49	53.95
Debt Service Coverage Ratio		--
Interest Service Coverage Ratio		--
Public shareholding
- Number of shares	138224074	138224074	138224074
- Percentage of shareholding	61.95%	61.95%	61.95%
- Promoters and Promoter Group Shareholding	84893126	84893126	84893126
a) Pledged/Encumbered
- Number of shares	42261673	42060673	42261673
- Percentage of shares (as a % of the total shareholding of promoter and promoter group)	49.78%	49.55	49.78%
- Percentage of shares (as a % of the total share capital of the company)	18.94%	18.85	18.94%
b) Non-encumbered
- Number of shares	42631453	42832453	42631453
- Percentage of shares (as a % of the total shareholding of promoter and promoter group)	50.22%	50.45	50.22%
- Percentage of shares (as a % of the total share capital of the company)	19.11%	19.20	19.11%

(B) INVESTOR COMPLAINTS	3 Months Ended 31.12.2012
Pending at the beginning of the quarter	-
Received during the quarter	88
Disposed of during the quarter	88
Remaining unresolved at the end of the quarter	-

Note :

1.

SEGMENT-WISE REVENUE, RESULTS AND CAPITAL EMPLOYED

(Rs. In Millions)

Particulars		Unaudited	Unaudited	Unaudited
		Quarter Ended	Quarter Ended	Half Year Ended
		31.12.2012	30.09.2012	31.12.2012
1	Revenue by Business Segment: Steel Power	84205.000 9836.700	90887.800 10154.200	266890.200 30630.900
	Total	94041.700	101042.000	297521.100
	I ,ess: In tor segment revenue	11117.200	12333.000	35511.600
	l	82924.500	88709.000	262009.500
2	Segment results before Finance Costs and tax: Steel Power	3020.000 2466.400	12245.800 2418.300	19844.400 7435.700
	Total Less: Unallocable items Finance Costs Unallocable expense net of unallocable income	5486.400 4545.700 33.400	14664.100 4207.500 (782.100)	27280.100 12819.800 (1471.400)
	Profit before Tax	907.300	11238.700	15931.700
3	Segment Capital Employed : ( Segment assets less Segment liabilities ) Steel Power Unallocated	322974.500 20050.200 (146846.200)	302769.900 19468.100 (126679.800)	322974.500 20050.200 (146846.200)
	Total	196178.500	195558.200	196178.500

The Company is primarily engaged in the business of manufacture and sale of Iron and Steel Products. The Company has identified two primary business segments, namely, Steel and Power (used mainly for captive consumption), which in the ( ontext of Acc ounting Standard 17 on "Segment Reporting" constitute reportable segments.

2. Exceptional Items :

Due to the significant movement in the value of the rupee against US dollar, the net foreign exchange gain / (loss) has been considered by the Company as exceptional in nature- Q3: Rs.(2674.100 millions), Q2:Rs. 4223.800 millions, Q3 previous year: Rs. (5001.100 millions), YTD (43708 lacs), YTD previous year Rs. (10201.300 millions), Previous financial year (82096 lacs).

In respect of the Company's long term, strategic investment in one of its subsidiaries, JSW Steel (USA) Inc., the Company periodically reviews and assesses its business plans and expected future cash flows. The Company has also considered a recent independent valuation / internal preliminary assessments of a significant portion of its underlying tangible assets and is in the process of making a detailed assessment of the fair values of the net assets. However, since the subsidiary may have a longer gestation period than originally envisaged, the Company has concluded that it will be prudent at this stage to provide for at close an amount of Rs. 600.000 millions, considered as an exceptional item, against the carrying amounts of the investment and loans of Rs. 30794.700 millions.

3. The Company has commenced commercial production of Phase II of its new Hot Strip Mill at Vijaynagar Works with effect from 15 December 2012 adding 1.5 MTPA to the existing HR Coil production capacity.

4. During the quarter, the Company has made additional investments aggregating Rs. 692.000 millions in subsidiary, associate and joint venture companies.

5. The Board of Directors of the Company on 1 September 2012 approved a Composite Scheme of Amalgamation and Arrangement under section 391 to 394 of the Companies Act, 1956 amongst JSW Steel Limited, JSW Ispat Steel Limited, JSW Building Systems Limited, JSW Steel Coated Products Limited (formerly Maharashtra Sponge Iron Limited) and their respective shareholders and creditors with 1 July 2012 being the appointed date. No accounting impact of the same has been given in the results above as the scheme is pending for approvals from shareholders and Bombay High Court and is yet to be made effective.

6. Paid up equity share capital does not include an amount of Rs. 610.300 millions being the amount originally paid up on the equity shares forfeited in an earlier year.

7. Comparative financial information has been regrouped and reclassified, wherever necessary, to correspond to the figures of the current quarter / nine months.

8. The auditors of the Company have carried out a Limited Review of the Standalone Financial Results for the quarter and nine months ended 31 December 2012 in compliance with Clause 41 of the Listing Agreement. The Standalone financial results have been reviewed by the Audit Committee and approved by the Board of Directors at its meeting held on 28 January 2013.

FIXED ASSETS

· Freehold Land

· Leasehold Land

· Building

· Plant and Machinery

· Furniture And Fixtures

· Vehicles and Aircrafts

· Software

PRESS RELEASE

JSW STEEL'S MAY PRODUCTION UP 40% ON BETTER DEMAND

Jun 17, 2013

JSW Steel  has recorded 40 percent month-on-month jump in crude steel production in May on improved demand.

The firm produced 10.13 lakh tonne of steel during the month when compared with 7.24 lakh tonne in April.

The company said, flat rolled products production was up 57 percent to 8.06 lakh tonne year-on-year, while rolled products-long was 1.68 lakh tonne, reflecting a 13 percent growth YoY.

The firm pointed out that said the production numbers for May 2012 did not include the production from Dolvi unit, as the appointed date for the scheme of amalgamation and arrangement was July 01, 2012.

Shares of the company climbed marginally up to Rs 689.60 at 14.000 hours.

JSW STEEL WINS PRESTIGIOUS PLATTS GLOBAL METALS AWARD

JUN 03, 2013

JSW Steel, the flagship company of $11bn Indian conglomerate JSW Group, has won the prestigious “The Industry Leadership Award” at Platts Global Metals Awards, which recognises achievements in steel, metals and mining. The award ceremony was recently held in London.

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.

JSW STEEL MAY MERGE WITH LOSS-MAKING JSW ISPAT

AUG 29, 2012

JSW Steel is likely to merge JSW Ispat, the loss-making subsidiary that was acquired in December 2010, with itself and an announcement is expected to be made within 15-20 days, sources said.

For the merger, share swap ratio could be somewhere between 1:65 or 1:75, they added. It means that JSW Ispat shareholders would get one share of JSW Steel for their every 65 or 75 shares held in the company.

JSW is aiming at multiple benefits through the merer, including a tax gain of about Rs 20880.000 millions on which JSW Ispat would be laying claim as it has started making profits, they further said. However, a JSW Steel spokesperson declined to comment on the matter and said, “If at all there is any development, it will be notified to the stock exchanges first.”

Shares of JSW Steel were trading at Rs 697 apiece on the BSE, down 1.80 percent, while JSW Ispat scrip was up 0.10 percent at Rs 9.81.

In July, JSW Steel Chairman Sajjan Jindal had said that merger process will begin once JSW Ispat becomes profitable and had indicated that it may happen in next fiscal.

The merger may also lead to Japan’s JFE Steel, the second largest shareholder in JSW with 15 percent stake, making additional investments in the Sajjan Jindal-led firm for retaining its holding at present levels.

The merger will lead to issuance of new shares and equity dilution for existing shareholders. “So, if JFE wants to retain its 15 percent shareholding, it will have to pump in additional money. That will be a big gain for JSW as its debt levels would increase post merger,” said a source.

JSW-promoter group, led by Sajjan Jindal, holds 38.05 percent stake in the steelmaker. The merger will also make JSW second largest domestic steel producer, with a 14.2 million tonnes per annum production capacity, after state-owned Steel Authority of India (SAIL).

The merger will also lead to increase in JSW’s debt by more than 60000.000 millions. As on March 2012, JSW had a net debt of Rs 166000.000 millions. In December 2010, the Sajjan Jindal-led firm had acquired 41 percent stake in debt-ridden Ispat Industries for about Rs 21570.000 millions from its then promoters Pramod and Vinod Mittal.

Later, JSW renamed it as JSW Ispat Steel and refinanced its Rs 60000.000 millions debt, out of a total of Rs 95000.000 millions debt at the time of acquisition, to bring it out of corporate debt restructuring. As on June 30, JSW Steel had 46.75 percent stake in JSW Ispat, while the erstwhile promoters, Pramod and Vinod Mittal hold less than 20 percent stake.

JSW Ispat, which operates 3.2 million tonnes production capacity at Dolvi, near Mumbai, posted net profit of Rs 4782.400 millions during the April-June quarter, its first profitable quarter in last few years. For the full financial year 2011-12, it has narrowed down its net loss considerably to Rs 2636.400 millions against a net loss of Rs 18722.900 millions in 2010-11.

The company, while announcing the results for the last quarter, had said that its net deferred tax asset, as on June 30, stands at Rs 2,087.94 crore and it is confident of claiming it in future, when it will have sufficient taxable income.

JSW STEEL UNDERSTATED DEBT TO THE TUNE OF RS 119000.000 MILLIONS:CREDIT SUISSE

JUL 6, 2012

According to a report by Credit Suisse, JSW Steel, has understated debt to the tune of Rs 119000.000 millions for the year ended March 2012. While the company’s

net debt is around Rs 166000.000 millions, the debt estimated by research firm Credit Suisse comes up to around Rs 285000.000 millions.

There are three grounds on which it says the debt has been understated

•Acceptances went up from Rs 68000.000 millions to Rs 75000.000 millions for the year ended March 2012. This has been classified under account payable and not under debt.

•Securitised receivables have gone up by 19 percent to Rs 31000.000 millions. According to CS, this should have been mentioned in the net debt of the group companies.

•Un-hedged portion of dollar liabilities is now close to $3 billion. With the rupee down rom the end-March level, just the translation has eroded book value by Rs 54 per share or seven percent. Every one rupee fall hurts the book value by 1.8 percent.

Overall, Credit Suisse maintains an under perform rating on the stock with a price target of Rs 465 per share. The stock closed down one percent to Rs 715 per share.

JSW STEEL COMPLETES MERGER OF JSW ISPAT

JUN 3, 2013

NEW DELHI: JSW Steel today said it has completed the merger of JSW Ispat Steel with itself and the amalgamation has become effective from June 1.

With the completion of merger, JSW Steel has become the second largest steel producer in the country after state-owned Steel Authority of India (SAIL) with 14.3 million tonnes capacity.

The company, led by Sajjan Jindal, had announced merger of JSW Ispat into itself in September last year.

"With reference to the earlier announcement... JSW Steel has now informed BSE that... the Scheme has become effective from June 1, 2013, upon filing of the certified copy of the order of the High Court of Bombay with the Registrar of Companies, Maharashtra, Bombay," it said in a BSE filing.

JSW Ispat also communicated the same to the stock exchanges through a separate filing.

The Bombay High Court had approved the composite scheme of amalgamation and arrangement amongst the two companies and their shareholders and creditors on May 3, 2013. Shareholders and creditors of the two companies had approved the merger on January 30.

As per the merger scheme, shareholders of JSW Ispat would get one JSW Steel share for every 72 shares they hold.

Moreover, JSW Ispat was to transfer its Kalmeshwar undertaking and JSW Steel was to transfer its downstream undertaking to JSW Steel Coated Products. Besides, JSW Building Systems was to be merged with JSW Steel.

Post-merger, JSW Steel promoters will now hold a little over 35 per cent stake in the company.

JSW's second largest shareholder JFE Steel holding will now come down to 14.92 per cent. JFE had about 15 per cent stake in JSW Steel till the time of merger announcement in September last year.

However, it was not clear how much stake Pramod and Vinod Mittal -- the erstwhile promoters of JSW Ispat-- will have in the merged entity as they have offloaded their significant stake in JSW Ispat in last few months.

JSW Steel had acquired 41 per cent stake in debt-ridden Ispat Industries from the Mittal brothers -- brothers of the steel czar L N Mittal-- for about Rs 21570.000 millions in December, 2010. Subsequently, Ispat was renamed as JSW Ispat.

Later, JSW increased its stake to 46.75 per cent in JSW Ispat and was the single-largest shareholder of the company.

Through merger, JSW Steel is aiming at various benefits, including synergy in operations and reducing the borrowing cost of JSW Ispat by Rs 2500.000 millions.

Post today's announcement, JSW shares rose 1.93 per cent on the BSE to close at Rs 693.90 apiece. JSW Ispat shares closed 2.15 per cent up on the BSE at Rs 9.49 apiece.

JSW STEEL STANDALONE NET PROFIT AT RS.18010.000 MILLIONS FOR FY 2012-13

23 MAY 2013

JSW Steel Limited showed resilience in withstanding the challenging environment of non-availability of sufficient quantity of quality iron ore, subdued growth in steel demand and growing imports from FTA countries like China. The company has reported a growth of 15% and 14% in volume of production and sales respectively.

The performance highlights for the 4^th quarter ended and Financial Year ended 31^st March 2013 are as under:

Performance Highlights: (Standalone)

	Q4FY13 Vs Q4FY12	FY13 Vs FY12
Volume growth (Crude Steel production )	2%	15%
Saleable Steel Sold	5%	14%
Operating EBITDA (Rs. In millions)	16970.000	63090.000
Profit after tax (Rs. In millions)	5730.000	18010.000
Net Total Debt gearing	0.82

Operational Performance:

The Company gave guidance for FY 2012-13 that it would achieve a volume of production and sales of 8.5 million tonnes and 9 million tonnes respectively. It is heartening to report that the Company exceeded the guided volume of production and achieved 98.5% of salevolume guidance.

The details of production and sales volumes are as under:

	( Million tonnes )		(Million tonnes)		Growth YoY
Products	Q4 FY 13	Q4 FY 12	FY 13	FY 12	Q4	FY
Production: Crude Steel	2.11	2.07	8.52	7.43	2%	15°%
Sales:
- Rolled: Flat	1.91	1.76	6.91	5.95	9%	16%
- Rolled: Long	0.49	0.46	1.71	1.46	6%	17%
- Semis	0.02	0.09	0.26	0.41	-78%	-37%
Total Saleable Steel	2.43	2.31	8.87	7.82	5°%	14°%

Financial Performance

While the Company's gross and net sales for the year ended 31st March 2013 showed a growth of 12% and 10% respectively, it is noteworthy that the operating EBIDTA also showed a growth of 12% with an improvement in margins to 17.8%. The net Profit After Tax (PAT) for Standalone Company was Rs.1,801 crores that too showing a growth of 11%.

The break up is as under:

Particulars	Rs. In millions		Rs. In millions		Growth YoY
	Q4 FY 13	Q4 FY 12	FY 13	FY 12	Q4	FY
Gross Sales	100760.000	102910.00	387630.000	346580.000	-2%	12%
Net Sales	92490.000	95110.000	353880.000	320600.000	-3%	10%
Operating EBIDTA	16970.000	16520.000	63090.000	56310.000	3%	12%
PAT	5730.000	7520.000	18010.000	16260.000	-24%	11%
Net Debt to Equity (x)	0.82	0.69
Weighted average interest cost	8.17%	8.19%

The operating EBIDTA margins for Q4'13 improved to 18.3% compared to 17.3% in corresponding period in spite of fall in steel prices, mainly on account of innovative coal blend and sourcing efficiency. However, the Net profit was lower by 24% due to Higher Interest and Depreciation attributed to 3 million tonnes per annum (MTPA) expansion project, which was commissioned but could not be operated due to non-availability of iron ore. Besides, the Tax Provision was higher as the surcharge was increased from 5% to 10% in the FY 2013-14 Union Budget.

In spite of paying higher prices in the e-auctions for iron ore that too for inferior quality, the Company could report improved financial performance majorly due to sourcing efficiency in coal, optimising blend of coal for coke making, and increased waste heat utilisation in various process units across plants.

The performance of overseas subsidiaries and associate company JSW Ispat Steel Limited during the FY 2012-13 is as under:

Particulars	US Plate/Pipe Mill	Chile Iron ore Mines	US Coal Mines	JSW Ispat Steel Limited (JSWISL) 12 months ended Apr'2012 to Mar'2013
Production	0.339/0.085 Mn NT	0.757 MnT	0.029 MnT	2.632 MnT *
Sales	0.261/0.078 Mn NT	0.938 MnT	0.041 MnT	2.542 MnT *
EBIDTA	$ 8.99 Mn	$ 14.21 Mn	$ (4.15) Mn	1,191 Crores

*Excluding Downstream products' production - 0.37 million tonnes and sales - 0.36 million tonnes.

While the operations in Chile iron ore mine continues to be profitable, the production in coal mines in US remain subdued during the financial year due to delay in obtaining permits. As regards to plate and pipe mill operations in US, the EBIDTA for the FY 2012-13 and for the Q4 FY 2013 was lower compared to comparative periods USD $8.99 million and US$0.47 million respectively mainly due to steep drop in prices in the US markets.

JSWISL showed a growth of 10% and 5% in H R Coil production and sales volume respectively in FY 2012-13 over corresponding period of last year. JSWISL commissioned its 55 MW power plant in Q4 2013 and its various projects viz railway siding, lime plant, coke oven battery and pellet plant are in various stages of implementation, all of which are reported to be operational in FY 2013-14.

Even after absorbing the proportionate losses from associate company viz; JSWISL, consolidation of losses from overseas subsidiaries and absorption of translation losses majorly due to exceptional foreign exchange movement, the consolidated net profit showed a growth of 79% over corresponding period of last year.

The details are as under:

Particulars	Rs. In millions		Rs. In millions		Growth YoY
	Q4 FY 13	Q4 FY 12	FY 13	FY 12	Q4	FY
Gross Sales	106750.00	109300.000	414630.000	367200.000	-2%	13%
Net Sales	98520.000	101530.000	380950.000	341240.000	-3%	12%
Operating EBIDTA	17330.000	18870.000	65040.000	61020.000	-8%	7%
PAT	2960.000	7700.000	9630.000	5380.000	-62%	79%
Net Debt to Equity (x)	1.11	0.98
Weighted average interest cost	7.60%	7.39%

The operating EBIDTA in Q4 FY13 was lower compared to corresponding periods due to lower contribution from

overseas operations. The Net profit was lower by 62% on account of higher interest and depreciation in standalone Company and the tax provision is increased as the surcharge was increased from 5 to 10% in the

India's Union Budget 2013-14. The consolidated net debt of the Company stood at Rs.19,533 crores with net debt gearing of 1.11.

Status on Scheme of Amalgamation & Arrangement

Following the approval of the Composite Scheme of Amalgamation and Arrangement (the "Scheme") under sections 391 and 394 of Companies Act 1956 by the shareholders and other requisite approvals received by the Companyon 3^rd May, 2013, the Hon'ble Bombay High Court sanctioned the said Scheme with effect from 1^st July 2012 being the appointed date. The Company is presently in the process of completing requisite formalities in due course to enable implementation of the Scheme. Pending effectiveness of the Scheme, the Company consolidated the financial results of JSWISL as an Associate pursuant to Accounting Standard (AS) 23 as is being followed consistently.

Projects Update

I.Projects commissioned during FY 2012-13:

1. 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 capacity of hot metal in Blast Furnace-2 from current 1.3 MTPA to 1.4 MTPA by better distribution of feed burden, and replacing top charging system with improved design.

- Enhanced capacity of HSM-2 by 1.5 MTPA.

- 2nd phase of Beneficiation plant completed taking the capacity to 20 million tonnes per annum.

- Commenced dry quenching of coke from the CDQ project commissioned by JSW Projects Limited.

- 60 tonnes per hour blast BF furnace gas fired boiler was commissioned to minimise flaring of gases from furnaces.

2. Salem Works:

- Commissioned 75 tonnes per hour Coke Drying unit for reducing the coke moisture, leading to substantial savings.

3. Vasind/Tarapur Works:

- Capacity of colour coating line at Tarapur enhanced from 2,32,000 to 2,76,000 tonnes per annum.

- Commissioned state-of-the-art new colour coating line with capacity of 1,50,000 tonnes per annum at Vasind

- New 300 KL per day capacity effluent treatment plant was commissioned.

The benefits on commissioning of these projects during FY 2012-13 are expected to accrue during FY 2013-14.

II.Projects under Implementation:

1) Capacity Enhancement Projects:

Vijayanagar Works:

a) Corex-1: Revamping and capacity enhancement from 0.80 to 0.85 MTPA.

b) Augmenting casting capacity at Steel Melting Shop No. 1 by addition of 1600 mm wide caster.

c) Augmenting of secondary steel melting capacity by adding one Ladle Heating Furnace.

d) Installation of Nodulizer for better granulometry of low grade iron ore in Sinter plant Nos. 1,2 & 3

e) Reconstruction of Blast Furnace –1 increasing its capacity from 0.9 mtpa to 1.8 mtpa.

f) 0.2 mtpa non-grain oriented Electrical Steel project to be commissioned 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 75,000 tonnes per annum at Vasind.

b) New Galvanising Line with dual pot of Galvalume cum Galvanising line with an annual capacity of 2,00,000 tonnes per annum at Tarapur.

c) Up gradation of Cold Rolling Mill TM – I & II at Tarapur.

2) Efficiency, Productivity improvement and Cost Reduction Iniatives

Vijayanagar Works:

a) Waste heat recovery system at Sinter Plants 2,3 & 4.

b) Waste heat recovery system at Blast Furnace 4.

c) Utilisation of surplus gases within the plant and for power generation to achieve zero flaring of gases.

d) Micro pellet plant using BOF sludge, fine dust fumes.

e) Mill scale briquetting by using mill scale generated from various mills.

f) Installation of burner system in existing CPP-3 / 4 Boiler for increasing the utilisation of waste gas.

Salem Works:

a) 32 ton per hour waste heat recovery boiler.

b) Commissioning of new wagon tippler to reduce demurrage and handling loss.

Vasind/Tarapur Works:

a) Conversion of LPG heating system to Natural gas system.

b) Commissioning of Railway siding at Vasind to achieve 100% inward rail movement.

3) Other Projects

Vijayanagar Works:

CRM –2 – 1st phase consisting of 2.30 MTPA of Pickling Line coupled with Tandem Cold Rolling Mill (PLTCM), Continuous Annealing Line (CAL) of 0.95 MTPA and Continuous Galvanising Line (CGL) of 0.4 MTPA is scheduled to be commissioned in Q3 2013. Also, in the second phase, 2nd CAL line is expected to be commissioned by 31st Dec, 2014.

The Company is also setting up a new Melting Shop with 1.5 MTPA per annum capacity comprising of electric arc furnace of 1.5 million tonne Billet Caster. This new melting shop along with a new Bar Mill, with a capacity of 1.2 MTPA is to be commissioned in FY 2014-15. This project will enable the Company to produce 10 mtpa finished steel at Vijayanagar works.

Dividend:

Considering the Company’s performance and financial position for the year under review, the Board, subject to the approval of the Members at the ensuing Annual General Meeting, has recommended a dividend of Re.1 per share on 27,90,34,907 10% Cumulative Redeemable Preference Shares (CRPS) of Rs. 10 each, for the year ended March 31st 2013.

The Board has, further, recommended a dividend at ` 10 per equity share on 22, 31, 17,200 equity shares of Rs.10 each for the year ended March 31st, 2013 , subject to the approval of the Members at the ensuing Annual General Meeting.

The total outflow on account of equity dividend including corporate tax on dividend is Rs.2610.400 millions, vis-à-vis Rs.1944.900 millions paid for FY12.

Outlook

The global market is facing significant uncertainty and volatility. The largest economy in the world viz; US is showing signs of improvement with falling un-employment rate and rising GDP. Japan is gradually recovering from a devastating tsunami and started new initiatives to revive the economy as reflected by a steep fall in the yen which augurs well for Japanese economic recovery. The austerity measures and fiscal consolidation initiatives in Europe are expected to bring stability. The developing countries, despite slow growth, are still expanding due to domestic consumption and inherent competitiveness to provide products and services at low cost to developed economies. With this back drop, the global economy is expected to show improved growth rates in CY 2013.

During the last year ,the Indian Government went ahead with a series of reforms; fuel price deregulation, FDI in retail, constitution of Cabinet Committee on Investment to revive stalled projects, etc., which augurs well for the revival of Indian economy. As inflation has been continuously falling, policy rates are expected to ease at a faster pace, which once again is positive for the investment cycle to revive. As per estimates by various independent agencies, India is expected to grow by ~6% in FY14.

The global steel production in CY 2012 across the world showed improvement except in Europe, Japan and South America. In line with the growth in global economy, the world steel production showed a growth of 1.2% in last year. A substantial portion of this growth emanated from China.

As per IMF estimates, the World economy is expected to grow by 3.2% in CY 2013. The World Steel Association estimates the demand for steel to grow by 2.9% in CY 2013. Since China is slowing down, the commodity prices are expected to be depressed which is good for India.

India’s steel demand grew at 3.3% in FY2013. With the GDP expected to grow by ~6%, in the current financial year, the steel demand will be tracking GDP in line with the revival of investment cycle. The slowing Chinese economy will keep the global commodity prices including coal and iron ore at lower levels. The Indian steel industry, while cautious from a threat of imports, particularly from FTA countries, is competitive in terms of overall cost of production.

Guidance

JSW Steel is ranked as No.4 by World Steel Dynamics amongst the top 25 steel companies globally. JSW Steel had created a capacity of 11 million tonnes at an attractive specific investment cost per ton creating a perpetual advantage in terms of capital servicing cost. It also created a wide spectrum of product mix, deep and wide sales networks across India and other geographies. The uncertainties surrounding the higher capacity utilisation are to a large extent mitigated due to lifting of ban on iron ore mining in the State of Karnataka by Hon’ble Supreme Court of India. It is expected that the iron ore availability is expected to improve in the State of Karnataka not only in terms of quantity but also in quality, thus bringing in productivity, fuel efficiency and cost efficiencies to JSW Steel operations in FY 2013-14. The guidance is predicated on the assumption that the category A & B mines as permitted by Hon’ble Supreme Court will be opened up and sufficient quantity of iron ore will be available to the Company.

Particulars	FY’13 (Actual)	FY’14 (Estimated)	Growth (YoY)
Crude Steel Production (million tonnes)	8.52	9.25	9 %
Saleable Steel Sales* (million tonnes)	8.87	9.75	10 %

*including sale of downstream products of 0.85 million tonnes manufactured from HR Coils from JSWISL.

JSW Steel Limited, belonging to JSW group, 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, 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 $ 10 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 ISPAT STEEL LIMITED - UPDATES ON SCHEME OF AMALGAMATION AND ARRANGEMENT

03 JUN 2013

With reference to earlier announcement dated May 08, 2013 informing the sanctioning of the Composite Scheme of Amalgamation and Arrangement amongst JSW ISPAT Steel Limited ("JSWISL"), JSW Building Systems Limited, JSW Steel Coated Products Limited and JSW Steel Limited and and their respective shareholders and creditors (the "Scheme") by the Hon'ble High Court of Judicature at Bombay, JSW ISPAT Steel Limited has now informed BSE that in terms of Section 391(3) read with Section 394(3) of Companies Act, 1956, he Scheme has become effective from June 01, 2013, upon<br/>filing of the certified copy of the Order of the Hon'ble High Court of Bombay with the Registrar of Companies, Maharashtra, Bombay. The Appointed Date, in terms of the Scheme, is July 01, 2012.

JSW ISPAT STEEL LIMITED - FIXES RECORD DATE FOR COMPOSITE SCHEME OF AMALGAMATION AND ARRANGEMENT

03 JUN 2013

JSW Steel Limited has informed BSE that "June 12, 2013", has been fixed as the record date (the "Record Date") for the purpose of drawing up the list of shareholders of JSW ISPAT Steel Limited ("JSWISL") to whom equity shares and 0.01% cumulative redeemable preference shares of the Company will be issued and allotted pursuant to and in terms of the Composite Scheme of Amalgamation and Arrangement amongst JSW Steel Limited, JSW ISPAT Steel Limited ("JSWISL"), JSW Building Systems Limited, JSW Steel Coated Products Limited and their respective shareholders and creditors (the "Scheme").

JSW STEEL REPORTS CONSOLIDATED PROFIT OF RS.6670.000 MILLIONS FOR 9 MONTHS ENDED DECEMBER 2012

13.02.2013

Consolidated Financial Performance:

JSW Steel reported a Net Sales of Rs. 88660.000 millions for Q3 FY 2012-13 showing a growth of 5% as compared to corresponding quarter of previous year. Net Sales during nine months ended 31^st Dec 2012 increased by 18% to Rs. 282430.000 millions relative to that of previous year.

Operating EBITDA for Q3 FY'13 and 9M FY'13 was Rs. 13310.000 millions and Rs. 47710.000 millions respectively showing growth of 1% and 13% compared to corresponding period of previous year. Net Loss for Q3 FY'13 was T 74 crores and Net profit for 9M FY'13 was Rs. 6670.000 millions. The consolidated loss of Rs. 740.000 millions for the Quarter was primarily due to losses reported by Associate company JSW Ispat Steel Limited.

The Company's consolidated net total debt gearing stood at 1.15 (as against 1.04 as on 30.09.2012).

Subsidiaries / Associates performance:

US Plate and Pipe Mill operation:

During Q3 FY'13, Capacity Utilization at US plate and pipe mill was 33% for plates and 16% for pipes. The Production in Q3 FY13 of Plates and Pipes were 0.08 million net tonnes and 0.02 million net tonnes respectively. As the realization for all steel products fell sharply in USA during the Quarter, the Company has incurred operating EBIDTA loss of US $ 0.76 Million for the Quarter. However the cumulative operating EBIDTA for 9 months ended December 2012 was positive at US S 8.52 Million.

Mining operation:

During Q3 FY'13, the Iron ore mining company in Chile made three shipments aggregating 0.22 million tonnes and the coal mining company in US made shipments of 0.008 million tonnes.

JSW Ispat Steel Limited (JSWISL):

HR Coils production during Oct'12 to Dec'12 quarter was 0.65 million tonnes with capacity utilization of 79%, Operating EBITDA was Rs. 2460.000 millions and Net loss was Rs. 1310.000 millions after considering Forex loss of t 83 crores on restatement of foreign currency monetary items which was considered by the Company as an exceptional item.

About JSW Steel Limited

JSW Steel Limited, belonging to JSW group, 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, 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/Galvalume products, Colour Coated Products, auto grade / white goods grade CRCA Steel, Bars and Rods. Incorporated in 1994, it has grown to about US $ 10 billion in less than two decades. JSW Steel Limited is one of the largest galvanizing and colour coating production capacity in the country and is the largest exporter of galvanized products with presence in over 100 countries across five continents.

MORE DOWNSIDE IN JSW ENERGY: SUDARSHAN SUKHANI

FEB 26, 2013

More downside in JSW Energy, says Sudarshan Sukhani of s2analytics.com.

Sukhani told CNBC-TV18, "The last support levels for JSW Steel have cracked. The entire Jindal group - the charts are showing that the end of the decline is not over, almost all the stocks are promising lower levels."

He further added, "JSW Energy had big rally and then a decline that was a V-shaped decline, up one day and suddenly starts falling the next day and keeps on falling. The final support levels were broken yesterday that suggests that much more downside is coming."

At 09:48 hrs JSW Energy was quoting at Rs 57.85, down Rs 0.80, or 1.36%. It has touched an intraday high of Rs 58.40 and an intraday low of Rs 57.60.

The company's trailing 12-month (TTM) EPS was at Rs 5.40 per share. (Dec, 2012). The stock's price-to-earnings (P/E) ratio was 10.71. The latest book value of the company is Rs 37.55 per share. At current value, the price-to-book value of the company was 1.54. The dividend yield of the company was 0.86%.

BUDGET 2013 LIVE: INTRODUCING DIRECT TAX CODE BILL IS GOOD, SAYS JSW STEEL

FEBRUARY 28 2013

Seshagiri Rao,Jt Managing Director, JSW Steel on Union Budget 2013-14

The budget, with the limited availability of fiscal space, attempted to bring fiscal consolidation with lower fiscal deficit of 4.8% and simultaneously made higher allocations to various schemes to spur investments.

Announcing 15 percent incentive for acquisition and installation of new plant and machinery by manufacturing companies during the period beginning from 1st April 2013 and ending 31st March 2015 is a welcome step to boost the investment.  

Higher allocation of 29.4 percent towards plan expenditure and increased outlays for social infrastructure, education, rural development, health and urban development are also expected to stimulate economic activity.

As most of the projects are stalled due to regulatory and bureaucratic delays, the  expectations from the budget to ease the  process of clearances is not met since the effectiveness of  Cabinet Committee  on Investment is yet to be  established. 

It is a matter of concern that the total   non-plan revenue expenditure particularly interest payment and subsidy remain at elevated levels.  It is also challenging to achieve an increase of 19 percent in tax revenues when the economy is slowing down and there are no immediate signs of recovery.

However, lower fiscal deficit, announcement of introduction of DTC bill in this  Steelbudget session and possible GST rollout are encouraging take outs from this budget.

AVOID JSW STEEL, TATA STEEL, SAIL: SP TULSIAN

FEBRUARY 18, 2013

SP Tulsian, sptulsian.com advises traders to avoid JSW Steel, Tata Steel  and SAIL  .

Tulsian told CNBC-TV18, “I am not firstly impressed by the Tata Steel numbers. If I place four shares in that category that is ferrous steel - SAIL, JSW Steel, Tata Steel all three are positive today and the fourth player that is Jindal Steel and Power is trading negative.”

He further added, “The sector, ferrous steel seems to have bottomed out definitely I will not advised buying Tata Steel at these level. This could be short covering because on the anticipation of the bad results, the kind of results the company has posted it was expected and because of that lot of shorts have seen build up. Same thing has happened in case of Steel Authority. There also similar pattern we are seeing now probably the stock is. So, upside we are seeing in Tata Steel by about 2 percent or so may not really last for very long time because of the negative perception continuous to remain on the sector so, definitely clear avoid for all the four stocks falling in this sector.”

WELCOME MOVE FROM RBI; NEED MORE CRR CUTS: JSW STEEL

JAN 29, 2013

Meeting expectations, the Reserve Bank of India slashed its key policy rate , the repo rate by 25 basis points to 7.75 percent in its third quarter monetary policy review. Along with this, the central bank cut cash reserve ratio (CRR) or the portion of deposits banks keep with RBI, by 25 bps to 4 percent. This reduction will inject Rs 180000.000 millions additional liquidity into the system.

Seshagiri Rao, Joint MD and Group CFO of JSW Steel  said that the rate cut was anticipated and it is a welcome move. However, he feels the need of the hour would be to inject more liquidity into the system through more CRR cuts. 

Here is the edited transcript of the interview on CNBC-TV18.

Q: Mr. Krishna Kumar of State Bank of India (SBI) as well as Mr. Seshadri of Bank of India (BOI) just said that they are both expecting rates to fall, both deposit and lending rates and probably 25 basis points. What are your first thoughts? If this is the impact that the credit policy is likely to have on your money and my money are you a happy man?

A: The expectation before yesterday was that the rate cut would be to the extent of at least 0.5 percent, but after RBI’s yesterday’s policy release it was indicating that it can be in the range of 0.25 percent. But, it is welcome that they have at least cut 0.25 percent, even though the need of the hour today is to have more cuts in interest rates and more cuts in Cash Reserve Ratio (CRR).

When the liquidity shortfall in the market is over Rs 1000.000 millions, as an industry we are seeing a huge liquidity constraint in the retail market and also small and medium enterprises (SMEs). It is quite evident and it is also decreasing the demand to a large extent. Therefore, injection of more liquidity is the need of the hour once again. So CRR cut of 0.25 percent even though is welcome, is not adequate in my view.

Q: Do you think life will become somewhat easier if the borrowing cost for you ancillary makers, SME makers, for any of your buyers and suppliers falls by 25 bps? Even companies like you and especially other infrastructure companies are ridden with debt. Will this somewhat make balance sheet management easier for you?

A: It is a feel good factor as far as this cut of 0.25 percent is concerned, but what is very important is how quickly and swiftly this will be transmitted to the borrowers by the banking system.

Banks have been reducing the deposit rates in the last few months. We are not seeing a huge amount of cut as far as the borrowing rates for the borrowers are concerned. When the RBI has already cut 0.25 percent, there can be more cuts in future, this transmission to the borrowers by way of lending at a lower rate is what is required right now.

Q: It is quite possible that in the run up to March, you are likely to get another cut from what the Governor is saying as of now. He has indicated a limited possibility of rate cuts, so another cut is certainly in the work. What do you think will be the bearing on your interest cost itself and will that spur you into spending a little more on capex?

A: Today as RBI has indicated in their policy document, there is an output gap. So there is a capacity in every sector, but there is not enough demand in the marketplace. These capacities can be used to the full extent only when the demand picks up.

How can demand pick up? Demand can pick up only by creating enough liquidity in the marketplace through monetary policy and also by reducing interest rates which can be affordable to the consumer. So these are very, very important steps. Capex is next one where investment cycle would come back and where fiscal policy also should support the monetary policy to achieve it.

As on date, in every sector, we are seeing capacities being created, there is no pricing power with the industry and at the same time demand is not there in the marketplace. So demand potentially is there, but that is getting reduced because monetary policy is not supporting, because liquidity is not adequate in the system and the interest rates are unaffordable.

Therefore, there is a need for RBI to look into these aspects and take more steps in pumping liquidity in the market and reducing interest rates is very, very important.

JSW ISPAT MERGER APPROVED BY JSW STEEL SHAREHOLDERS

JANUARY 31, 2013

JSW Steel today said its shareholders have approved merger of JSW Ispat Steel with itself, paving the way for the company to become second largest steel producer in the country.

In a filing to the BSE, the Sajjan Jindal-led company said that 99.99 percent shareholders voted in favour of merging JSW Ispat with the company in the meeting, held yesterday.

Now, a formal nod of the Bombay High Court is required to complete the merger process. Post merger, JSW Steel will have an annual production capacity of 14.3 million tonnes and become second largest domestic producer after SAIL.

According to the merger plan, shareholders of JSW Ispat will get one JSW Steel share for every 72 shares they hold. Moreover, JSW Ispat will transfer its Kalmeshwar undertaking and JSW Steel will transfer its downstream undertaking to JSW Steel Coated Products. Besides, JSW Building Systems will also be merged with JSW Steel.

Announcing the merger in September, JSW Steel chairman Sajjan Jindal had said that "this merger will give us a lot of synergy in operation and economies of scale. We can now go for brown-field expansion at Vijayanagar in Karnataka and Dolvi in Maharashtra."

Besides, it will also reduce the cost of borrowing for JSW Ispat and the merged entity is likely to get Rs 250 crore benefit from it. Moreover, the net debt level of the merged entity would be around Rs 252000.000 millions with a debt to equity ratio of 1:1.15.

Post-merger, promoters of JSW Steel will hold 35.12 percent in the merged entity, while company's second largest shareholder JFE Steel holding will come down to 14.92 percent. JFE had 15 percent stake in JSW Steel till the time of merger announcement.

JSW Steel had acquired 41 percent stake in debt-ridden Ispat Industries from Pramod and Vinod Mittal, brothers of the steel czar L N Mittal, in December 2010 for about Rs 21570.000 millions. Ispat Industries was subsequently named as JSW Ispat.

JSW Steel later increased its stake to 46.75 percent and remains the single-largest shareholder in JSW Ispat. The Mittal brothers will own around 3 percent stake in the merged entity. Before the merger announcement, the Mittal brothers had nearly 20 percent stake in JSW Ispat.

The trigger for the merger was JSW Ispat clocking a net profit of Rs 4782.400 millions during the April-June quarter of 2012, which was its first one in last few years.

After returning to profit making, JSW Ispat would now be eligible to lay claim of deferred tax benefits of about Rs 20880.000 millions, which would be a huge gain to JSW Steel.

CMT REPORT (Corruption, Money Laundering & Terrorism]

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

1] INFORMATION ON DESIGNATED PARTY

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

2] Court Declaration :

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

3] Asset Declaration :

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

4] Record on Financial Crime :

Charges or conviction registered against subject: None

5] Records on Violation of Anti-Corruption Laws :

Charges or investigation registered against subject: None

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

Charges or investigation registered against subject: None

7] Criminal Records

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

8] Affiliation with Government :

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

9] Compensation Package :

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

10] Press Report :

No press reports / filings exists on the subject.

CORPORATE GOVERNANCE

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

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

CONTRAVENTION

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

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.59.70
UK Pound	1	Rs.91.14
Euro	1	Rs.77.98

INFORMATION DETAILS

Information Gathered by :	SVA
Report Prepared by :	MRI

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
DEFAULTER
--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	-

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

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