MIRA
INFORM REPORT
|
Report Date : |
04.03.2013 |
IDENTIFICATION DETAILS
|
Name : |
JINDAL STAINLESS LIMITED (w.e.f. 07.12.2011) |
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Formerly Known
As : |
JSL STAINLESS LIMITED |
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Registered
Office : |
O. P. Jindal Marg,
Hisar – 125 005, Haryana |
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Country : |
India |
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Financials (as
on) : |
31.03.2012 |
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Date of
Incorporation : |
29.09.1980 |
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Com. Reg. No.: |
05-010901 |
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Capital
Investment / Paid-up Capital : |
Rs. 379.011 Millions |
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|
|
|
CIN No.: [Company Identification
No.] |
L26922HR1980PLC010901 |
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|
TAN No.: [Tax Deduction &
Collection Account No.] |
RTKJ01831E RTKJ01408B |
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PAN No.: [Permanent Account No.] |
AABCJ1969M |
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Legal Form : |
A Public Limited Liability company. The company’s Share are Listed on
the Stock Exchange. |
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Line of Business
: |
Manufacturer
of Stainless Steel |
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No. of Employees
: |
4982
(Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
B (27) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Maximum Credit Limit : |
USD 800000000 |
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Status : |
Moderate |
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Payment Behaviour : |
Slow and Delayed |
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Litigation : |
Exist |
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Comments : |
Subject is well established company having moderate track record.
There appears loss in the current year. Subject has delayed in its debt payment.
The liquidity positions seem to be weak. However, trade relations are reported to be fair. Business is active.
Payments are reported to be slow and delayed. The company can be considered for business dealing with great caution. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – June 30, 2012
|
Country Name |
Previous Rating (31.03.2012) |
Current Rating (30.06.2012) |
|
India |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
INDIAN ECONOMIC OVERVIEW
India is developing into an open-market economy, yet traces
of its past autarkic policies remain. Economic liberalization, including
industrial deregulation, privatization of state-owned enterprises, and reduced
controls on foreign trade and investment, began in the early 1990s and has
served to accelerate the country's growth, which has averaged more than 7% per
year since 1997. India's diverse economy encompasses traditional village
farming, modern agriculture, handicrafts, a wide range of modern industries,
and a multitude of services. Slightly more than half of the work force is in
agriculture, but services are the major source of economic growth, accounting
for more than half of India's output, with only one-third of its labor force.
India has capitalized on its large educated English-speaking population to
become a major exporter of information technology services and software
workers. In 2010, the Indian economy rebounded robustly from the global
financial crisis - in large part because of strong domestic demand - and growth
exceeded 8% year-on-year in real terms. However, India's economic growth in
2011 slowed because of persistently high inflation and interest rates and
little progress on economic reforms. High international crude prices have
exacerbated the government's fuel subsidy expenditures contributing to a higher
fiscal deficit, and a worsening current account deficit. Little economic reform
took place in 2011 largely due to corruption scandals that have slowed legislative
work. India's medium-term growth outlook is positive due to a young population
and corresponding low dependency ratio, healthy savings and investment rates,
and increasing integration into the global economy. India has many long-term
challenges that it has not yet fully addressed, including widespread poverty,
inadequate physical and social infrastructure, limited non-agricultural
employment opportunities, scarce access to quality basic and higher education,
and accommodating rural-to-urban migration.
|
Source
: CIA |
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CARE |
|
Rating |
D (Short Term Bank Facilities) |
|
Rating Explanation |
Default |
|
Date |
April 26, 2012 |
|
Rating Agency Name |
CARE |
|
Rating |
D (Long Term Bank Facilities) |
|
Rating Explanation |
Default |
|
Date |
April 26, 2012 |
RBI DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available RBI Defaulters’ list.
EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of
31-03-2012.
LOCATIONS
|
Registered Office : |
O. P. Jindal
Marg, Hisar – 125 005, |
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|
Tel. No.: |
91-1662-222471- 483 (15 Lines) |
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Fax No.: |
91-1662-220476 /
220499 |
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E-Mail : |
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Website : |
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Bhubaneswar Office : |
6th Floor, INCO Tower, Janpath, Bhubaneswar – 751022, India |
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Tel. No.: |
91-647-2545561/2544846 |
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Fax No.: |
91-674-2546147 |
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E-Mail : |
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Corporate
Office : |
Jindal Centre,
12, |
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Tel. No.: |
91-11-26188345-60 |
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Fax No.: |
91-11-26161271 / 26170691 / 41659169 |
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E-Mail : |
||
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Corporate Office : |
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Factory 1 : |
P. O. Box No. 6,
O.P, Jindal Marg, Hisar – 125 005, |
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Tel. No.: |
91-1662-220471-485
(15 Lines) |
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Fax No.: |
91-1662-220476 /
220499 |
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Factory 2 : |
Kalinga Nagar
Industrial Complex, P. O. Danagadi – 755026, District Jajpur, |
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Tel. No.: |
91-672-6266001 |
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Fax No.: |
91-672-6266002 |
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Factory 3 : |
Kawasan Industry Maspion, Maspion Unit-V, Desa Sukomylyo-Manyar,
Gresik 61151, Jawa Timur-Indonesia |
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Tel. No.: |
62-31-3959565 |
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Fax No.: |
62-31-3959566 |
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Factory 4 : |
Jindal Nagar,
Kothavalasa - 535183, District Vizianagaram, |
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Tel. No.: |
91-8966-273327/273254/273335 |
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Fax No.: |
91-8966-273326 |
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E-mail : |
||
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Domestic Sales
Office : |
Located at: ·
Delhi ·
Chennai ·
Mumbai ·
Hyderabad ·
Pune ·
Bangalore ·
Vadodara ·
Vishakapatnam ·
Kolkata ·
Rudrapur ·
Surat ·
Indore ·
Jodhpur ·
Ahmadabad · Bhubaneswar |
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Overseas Sales
Office : |
Located at: ·
Turkey ·
UAE ·
Vietnam ·
South
Korea ·
China ·
Italy ·
USA ·
Spain ·
Poland ·
Russia ·
Thailand · Indonesia |
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|
Service
Centers Network : |
Located at: ·
Gurgaon ·
Mumbai ·
Chennai ·
Vadodara ·
Bangalore ·
Kolkata ·
Hyderabad ·
Pune |
|
DIRECTORS
As on: 31.03.2012
|
Name : |
Mr. Gautam Kanjilal |
|
Designation : |
Nominee Director of State Bank of |
|
|
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|
Name : |
Mr. Naveen Jindal |
|
Designation : |
Director |
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|
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|
Name : |
Ms. Suman Jyoti Khaitan |
|
Designation : |
Director |
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|
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|
Name : |
Mr. T. S. Bhattacharya |
|
Designation : |
Director (Sales and Marketing) |
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|
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|
Name : |
Mr. Jurgen Hermann Fechter |
|
Designation : |
Director |
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|
Name : |
Mr. James Alistair Kirkland Cochrane |
|
Designation : |
Director |
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Name : |
Mr. Rajeev Bakshi |
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Designation : |
Director |
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|
Name : |
Mr. Ramesh R. Nair |
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Designation : |
President and Executive Director |
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Name : |
Mr. Jitendra P. Verma |
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Designation : |
Executive Director (Finance) |
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Name : |
Mr. Subash Singh Virdi |
|
Designation : |
Executive Director and Chief Operating Officer |
KEY EXECUTIVES
|
Name : |
Mr. Jitendra Kumar |
|
Designation : |
Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on: 31.12.2012
|
Name of Shareholder |
No. of Shares |
Percentage of Holding |
|
(A) Shareholding of
Promoter and Promoter Group |
|
|
|
|
|
|
|
Individuals / Hindu Undivided Family |
749115 |
0.43 |
|
|
43141700 |
24.95 |
|
|
43890815 |
25.38 |
|
|
|
|
|
|
7426725 |
4.29 |
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|
23149710 |
13.39 |
|
|
30576435 |
17.68 |
|
Total shareholding
of Promoter and Promoter Group (A) |
74467250 |
43.06 |
|
(B) Public
Shareholding |
|
|
|
|
|
|
|
|
16358590 |
9.46 |
|
|
273841 |
0.16 |
|
|
2426624 |
1.40 |
|
|
43421080 |
25.11 |
|
|
62480135 |
36.13 |
|
|
|
|
|
|
8488072 |
4.91 |
|
|
|
|
|
|
17057610 |
9.86 |
|
|
10430146 |
6.03 |
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|
35975828 |
20.80 |
|
Total Public shareholding
(B) |
98455963 |
56.94 |
|
Total (A)+(B) |
172923213 |
100.00 |
|
(C) Shares held by Custodians and against which Depository Receipts have been issued |
0 |
0.00 |
|
|
16734984 |
0.00 |
|
|
869350 |
0.00 |
|
|
17604334 |
0.00 |
|
Total (A)+(B)+(C) |
190527547 |
0.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer
of Stainless Steel. |
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Products : |
·
Strip
Mill/Tandem Mill ·
Plate/Steckel
Mill ·
Steel
Melting ·
Cold
Rolling Mill ·
Cold
Rolled Strips ·
Cold
Rolled Special Steel ·
Oxygen
Plant ·
Oxygen
Gas ·
Argon
Gas ·
Industrial
Machinery ·
High
Carbon Ferro Chrome ·
Rolling
Mill Plant |
|||||||
PRODUCTION STATUS (AS ON
31.03.2011)
|
Particulars |
Unit |
Installed Capacity |
Production |
|
AT HISAR: 1. Strip Mill/Tandem Mill 2. Plate/Steckel Mill 3. Steel Melting 4. Cupro Nickle Melting 5. Cold Rolling Mill i) Cold Rolled Strips ii) Cold Rolled Special Steel iii) Coin Blanks 6. Oxygen Plant: i) Oxygen Gas ii) Argon Gas 7 Industrial Machinery AT VIZAG High Carbon Ferro Chrome AT ODISHA / MINES High Carbon Ferro Chrome Power Plant
|
MT MT MT MT MT MT MT M. Cum. M. Cum. Nos. MT MT MT MT |
780000 720000 250000 6000 275000 25000 10000 55.00 1.50 209 40000 250000 96000 264 430000 |
130795 534152 1363 1367 198951 22286 1292 53018572 1494400 32836
178871 |
GENERAL INFORMATION
|
No. of Employees : |
4982
(approximately) |
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Bankers : |
·
State
Bank of ·
State
Bank of ·
Punjab
National Bank ·
Canara
Bank ·
Standard
Chartered Bank ·
ICICI
Bank ·
Axis
Bank ·
Bank
of Baroda |
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Facilities : |
(Rs.
In Millions)
|
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Banking
Relations : |
-- |
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Auditors : |
|
|
|
Name : |
·
S. S.
Kothari Mehta and Company Chartered Accountants ·
Lodha
and Company Chartered Accountants |
|
|
|
|
|
|
Cost Auditors : |
Ramanath Iyer and
Company Cost Accountants |
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Associates : |
·
J.S.S. Steelitalia
Limited |
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Subsidiaries : |
|
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|
Joint Venture
: |
·
MJSJ Coal Limited |
|
CAPITAL STRUCTURE
As on: 27.09.2011
Authorised Capital : Rs.950.000 Millions
Issued, Subscribed & Paid-up Capital : Rs.381.055 Millions
As on: 31.03.2012
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
475000000 |
Equity Shares |
Rs.2/- each |
Rs.950.000 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
189505625 |
Equity Shares |
Rs.2/- each |
Rs.379.011
Millions |
|
|
|
|
|
|
a) RECONCILIATION OF THE NUMBER OF EQUITY SHARES OUTSTANDING AT THE
BEGINNING AND AT THE END OF THE REPORTING YEAR |
No. of Shares |
|
Equity Shares outstanding at the beginning of the year |
187315792 |
|
Equity Shares issued during the year |
|
|
On Conversion of Foreign Currency Convertible Bonds |
2189833 |
|
Shares outstanding at the end of the year |
189505625 |
13137179 equity shares of Rs. 2/- each fully paid up have been allotted to the holders of 7199 Foreign Currency Convertible Bonds of US $ 5000/- each at predetermined (as per scheme) conversion rate of Rs.119.872 each during the last five years
(b) TERMS/RIGHT ATTACHED TO EQUITY SHARES
The company has only one class of equity shares having a par value of Rs. 2 per share. Each holder of equity shares is entitled to one vote per share. The company declares and pays dividends in Indian rupees. The dividend proposed, if any, by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting and also has equal right in distribution of Profit/Surplus in proportions to the number of equity shares held by the shareholders.
(c) EQUITY SHARES IN
THE COMPANY HELD BY EACH SHAREHOLDER HOLDING MORE THAN 5% SHARES ARE AS UNDER
|
NAME OF THE EQUITY SHAREHOLDER |
No. of Shares |
|
Jindal Overseas Holdings Limited |
14150000 |
|
Reliance Capital Trustee Company Limited - A/C Reliance Diversified Power Sector Fund |
11939931 |
|
Citigroup Global Markets Mauritius Private Limited |
11904296 |
|
American Express Bank Limited - A/c AEB London |
9997524 |
(d) EQUITY SHARES
RESERVED FOR ISSUE UNDER OPTIONS
(i) For details of shares reserved for issue under the Employee Stock Option Scheme, 2010 of the company, please refer Note No. 46
(ii) For details of shares reserved for issue on conversion of Foreign Currency Convertible Bonds, please refer
Note No.4 (f) regarding terms of conversion.
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES
OF FUNDS |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
|
SHAREHOLDERS
FUNDS |
|
|
|
|
|
1] Share Capital |
379.011 |
374.632 |
371.164 |
|
|
2] Equity Share
Warrants |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves &
Surplus |
21442.320 |
22173.504 |
18764.754 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
NETWORTH
|
21821.331 |
22548.136 |
19135.918 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
92050.802 |
85597.835 |
72860.274 |
|
|
2] Unsecured
Loans |
389.472 |
1199.428 |
2588.934 |
|
TOTAL BORROWING
|
92440.274 |
86797.263 |
75449.208 |
|
|
DEFERRED TAX
LIABILITIES |
3945.681 |
4444.667 |
3909.777 |
|
|
|
|
|
|
|
TOTAL
|
118207.286 |
113790.066 |
98494.903 |
|
|
|
|
|
|
|
APPLICATION OF FUNDS
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block]
|
97602.406 |
41624.107 |
39031.855 |
|
Capital work-in-progress
|
4566.386 |
49009.590 |
38849.824 |
|
|
|
|
|
|
|
INVESTMENT
|
1699.020 |
1672.464 |
3514.469 |
|
DEFERREX TAX ASSETS
|
0.000 |
0.000 |
0.000 |
|
OTHER NON CURRENT ASSETS
|
221.384 |
427.522 |
0.000 |
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES
|
|
|
|
|
|
|
Inventories
|
27027.589 |
21087.218 |
16328.649 |
|
|
Sundry Debtors
|
15056.646 |
12213.276 |
10597.367 |
|
|
Cash & Bank Balances
|
1641.981 |
3078.395 |
6875.024 |
|
|
Other Current Assets
|
39.692 |
49.908 |
0.000 |
|
|
Loans & Advances
|
12786.769 |
11830.287 |
8179.561 |
Total Current Assets
|
56552.677 |
48259.084 |
41980.601 |
|
Less : CURRENT LIABILITIES & PROVISIONS
|
|
|
|
|
|
|
Sundry Creditors
|
20339.468 |
12509.535 |
7374.084 |
|
|
Current Liabilities
|
18233.978 |
10839.223 |
14795.429 |
|
|
Provisions
|
3861.141 |
3853.943 |
2990.224 |
Total Current Liabilities
|
42434.587
|
27202.701
|
25159.737
|
|
Net Current Assets
|
14118.090 |
21056.383 |
16820.864 |
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES
|
0.000 |
0.000 |
277.891 |
|
|
|
|
|
|
|
TOTAL
|
118207.286 |
113790.066 |
98494.903 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
78910.484 |
68389.732 |
57565.487 |
|
|
|
Other Income |
753.062 |
569.858 |
168.486 |
|
|
|
TOTAL (A) |
79663.546 |
68959.590 |
57733.973 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of materials consumed |
56536.364 |
44547.891 |
43784.710 |
|
|
|
Purchases of Trading Goods |
968.984 |
1534.560 |
1214.435 |
|
|
|
Changes in inventories of finished goods
work in progress and Trading goods |
(4353.362) |
(2408.930) |
1935.265 |
|
|
|
Employee benefits expenses |
1698.332 |
1518.140 |
31.768 |
|
|
|
Other Expenses |
15019.744 |
12387.754 |
|
|
|
|
TOTAL (B) |
69870.062 |
57579.415 |
44637.455 |
|
|
|
|
|
|
|
|
Less |
PROFIT
/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
9793.484 |
11380.175 |
13096.518 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
5168.003 |
3887.429 |
3993.883 |
|
|
|
|
|
|
|
|
|
|
PROFIT
/ (LOSS ) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) |
4625.481 |
7492.746 |
9102.635 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION |
4086.075 |
3561.429 |
3398.871 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
EXCEPTIONAL AND EXTRAORDINARY ITEMS AND TAX |
539.406 |
3931.317 |
5703.764 |
|
|
|
|
|
|
|
|
|
Less/ Add |
EXCEPTIONAL
ITEMS - GAIN/(LOSS |
2077.593 |
542.249 |
0.000 |
|
|
|
|
|
|
|
|
|
|
PROFIT / (LOSS)
BEFORE TAX |
(1538.187) |
4473.566 |
5703.764 |
|
|
|
|
|
|
|
|
|
Less |
TAX |
(499.072) |
1290.197 |
1918.942 |
|
|
|
|
|
|
|
|
|
|
PROFIT / (LOSS)
AFTER TAX |
(1039.115) |
3183.369 |
3784.822 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
7165.802 |
3746.533 |
0.000 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DENTURE
REDEMPTION RESERVE WRITTEN BACK |
60.100 |
235.900 |
360.000 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Debenture Redemption Reserve |
0.000 |
0.000 |
398.289 |
|
|
BALANCE CARRIED
TO THE B/S |
6186.787 |
7165.802 |
3746.533 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export Earnings |
17735.467 |
33369.600 |
11108.780 |
|
|
|
Interest |
3.091 |
2.666 |
132.632 |
|
|
|
Other Earnings |
0.000 |
11.701 |
0.000 |
|
|
TOTAL EARNINGS |
17738.558 |
33383.967 |
11241.412 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
2821.945 |
20527.825 |
14936.661 |
|
|
|
Stores & Spares |
1118.836 |
1015.738 |
779.869 |
|
|
|
Capital Goods |
2140.377 |
10682.587 |
12712.222 |
|
|
|
Others |
944.910 |
1522.305 |
117.026 |
|
|
TOTAL IMPORTS |
7026.068 |
33748.455 |
28545.778 |
|
|
|
|
|
|
|
|
|
|
Earnings /
(loss) Per Share (Rs.) |
(5.52) |
16.71 |
23.33 |
|
QUARTERLY RESULTS
|
Particulars (Rs in
Millions) |
30.06.2012 |
30.09.2012 |
31.12.2012 |
|
|
Unaudited |
Unaudited |
Unaudited |
|
|
1st Quarter |
2nd Quarter |
3rd Quarter |
|
Net Sales |
22169.000 |
24638.600 |
25842.700 |
|
Total Expenditure |
19855.200 |
23466.900 |
24635.700 |
|
PBIDT (Excl OI) |
2313.800 |
1171.700 |
1207.000 |
|
Other Income |
147.000 |
95.800 |
116.000 |
|
Operating Profit |
2460.800 |
1267.500 |
1323.000 |
|
Interest |
2071.100 |
2505.700 |
2628.200 |
|
Exceptional Items |
(2091.300) |
677.600 |
(796.700) |
|
PBDT |
(1701.600) |
(560.600) |
(2101.900) |
|
Depreciation |
1701.300 |
1713.700 |
1707.700 |
|
Profit Before Tax |
(3402.900) |
(2274.300) |
(3809.600) |
|
Tax |
(1088.800) |
(751.700) |
(1235.700) |
|
Provisions and contingencies |
0.000 |
0.000 |
0.000 |
|
Profit After Tax |
(2314.100) |
(1522.600) |
(2573.900) |
|
Net Profit |
(2314.100) |
(1522.600) |
(2573.900) |
KEY RATIOS
|
PARTICULARS |
|
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
PAT / Total Income |
(%) |
1.31 |
4.62 |
6.55
|
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
1.95 |
6.54 |
9.90
|
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
0.99 |
4.98 |
7.04
|
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.07 |
0.19 |
0.29
|
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
4.24 |
3.85 |
3.94
|
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.33 |
1.77 |
1.66
|
LOCAL AGENCY FURTHER INFORMATION
|
Sr. No. |
Check List by Info Agents |
Available in Report
(Yes / No) |
|
1] |
Year of Establishment |
Yes |
|
2] |
Locality of the firm |
Yes |
|
3] |
Constitutions of the firm |
Yes |
|
4] |
Premises details |
No |
|
5] |
Type of Business |
Yes |
|
6] |
Line of Business |
Yes |
|
7] |
Promoter's background |
No |
|
8] |
No. of employees |
Yes |
|
9] |
Name of person contacted |
No |
|
10] |
Designation of contact person |
No |
|
11] |
Turnover of firm for last three years |
Yes |
|
12] |
Profitability for last three years |
Yes |
|
13] |
Reasons for variation <> 20% |
-- |
|
14] |
Estimation for coming financial year |
No |
|
15] |
Capital in the business |
Yes |
|
16] |
Details of sister concerns |
Yes |
|
17] |
Major suppliers |
No |
|
18] |
Major customers |
No |
|
19] |
Payments terms |
No |
|
20] |
Export / Import details (if applicable) |
No |
|
21] |
Market information |
-- |
|
22] |
Litigations that the firm / promoter involved in |
Yes |
|
23] |
Banking Details |
Yes |
|
24] |
Banking facility details |
Yes |
|
25] |
Conduct of the banking account |
-- |
|
26] |
Buyer visit details |
-- |
|
27] |
Financials, if provided |
Yes |
|
28] |
Incorporation details, if applicable |
Yes |
|
29] |
Last accounts filed at ROC |
Yes |
|
30] |
Major Shareholders, if available |
Yes |
|
31] |
Date of Birth of Proprietor/Partner/Director, if available |
No |
|
32] |
PAN of Proprietor/Partner/Director, if available |
No |
|
33] |
Voter ID No of Proprietor/Partner/Director, if available |
No |
|
34] |
External Agency Rating, if available |
Yes |
LITIGATION DETAILS
|
IN THE HIGH COURT OF DELHI AT NEW DELHI
ITA 749/2009 and ITA 1424/2008
THE COMMISSIONER OF INCOME TAX ..... Appellant Through : Ms Rashmi Chopra
versus
JINDAL STAINLESS LIMITED Respondent Through : Mr Ajay Vohra with Ms Kavita Jha and Mr Sriram Krishna.
CORAM: HON'BLE MR JUSTICE BADAR DURREZ AHMED HON'BLE MR JUSTICE V.K. JAIN
O R D E R 04.05.2010 There is no time left to hear this appeal today. Renotify on 22.07.2010. BADAR DURREZ AHMED, J
V.K. JAIN, J May 04, 2010 |
UNSECURED LOAN
(Rs.
In Millions)
|
|
As on 31.03.2012 |
As on 31.03.2011 |
|
BONDS Foreign Currency Convertible Bonds |
218.784 |
459.380 |
|
PUBLIC FIXED DEPOSITS |
74.915 |
573.838 |
|
LONG TERM MATURITIES OF FINANCE LEASE OBLIGATIONS |
60.726 |
78.566 |
|
Public Fixed Deposits |
35.047 |
87.644 |
|
Total |
389.472 |
1199.428 |
|
(a) Foreign Currency Convertible Bonds (FCCB) originally issued to the Foreign investors on 24th December, 2004 with 0.50% coupon rate, amounting to USD 60 million, out of which USD 24.05 million were outstanding as on 31st March 2010. In terms of the Agreement executed with Trustee for Bondholders on 6th December 2010 for restructuring of FCCB, the Company has paid accrued YTM amounting to USD 7.20 million, outstanding as on 31st March, 2010, from 23rd December 2004 to 24th December 2009 to all outstanding USD 24.05 million FCCB holders. Pursuant to the terms of FCCB restructuring, the FCCBs amounting to USD 9.0 million were redeemed by the Company and balance remaining USD 15.05 million FCCBs were restructured with zero coupon. Unless previously redeemed, repurchased and cancelled, or converted, the Bonds are redeemable at 176.28% of their principal amount on 24th December 2019. These Bonds at the option of the holder, may be converted into Equity Shares of face value of Rs. 2/- each, at a pre-determined price of Rs. 119.872/- per share. These FCCBs would now be termed as “Convertible Bonds due December 24, 2019”. During the year, the Company has received conversion notice for 1,200 (950) FCCBs amounting to USD 6.00 million (USD 4.75 million) and subsequently their against the company has allotted 2189833 (1733620) fully paid equity shares. (b) Fixed deposits from public have a maturity period of 2 and 3 years from the date of deposits and repayable as and when due. |
||
FINANCIAL RESULTS
During the year, the Gross Revenue from operations of your Company on
standalone basis has increased by 16% at Rs. 84983.300 Millions as compared to
Rs. 73512.700 Millions during previous financial year 2010-11. The Profit
before other income, Finance Cost, Depreciation, Exceptional Items, Tax and
Amortisation on standalone basis stood at Rs. 9040.400 Millions as compared to
`Rs.10810.300 Millions during previous year.
Further, during the year, the Consolidated Gross Revenue from operations
of your Company has increased by 17% at Rs.
93642.900 Millions as compared to Rs. 80358.500 Millions during previous
financial year 2010-11. Consolidated Profit before other income, Finance Cost,
Depreciation, Exceptional Items, Tax and Amortisation stood at Rs. 9476.500
Millions as compared to Rs. 11736.600 Millions during previous year.
The financial results of The Company during the year have been adversely
impacted inter-alia on account of (i) adverse exchange fluctuation arising on
account of sharp depreciation of Indian Rupee (ii) subdued global economic
sentiments emanating from European crisis and surge in imports of stainless
steel flat products into India caused by aggressive price under cutting,
dumping and other trade restrictive practices adopted by overseas stainless
steel producers (iii) unprecedented increase in raw material prices of chrome
ore and coal.
OPERATIONS
The Company is the largest integrated stainless steel Company in India producing diversified stainless steel flat products. It has three manufacturing facilities in India, located at Hisar in the State of Haryana, Jajpur in the State of Odisha and Vizag in the State of Andhra Pradesh. The facilities include captive chromite mines, ferro-alloy facilities, captive thermal power plants and stainless steel melting, hot rolling, cold rolling and downstream value-added facilities.
(A) Hisar Division:
Hisar is having stainless steel melting capacity of 800,000 tons per annum. During the year, the plant has achieved highest ever production in most of its production facilities, steel melt shop, hot rolling, cold rolling and special product division. The steel melt shop achieved production of 723418 tons as compared to 701814 tons during financial year 2010-11. Hot rolling mill and cold rolling mill processed 540,671 tons of hot rolled products and 260447 tons of cold rolled annealed pickled products respectively. The special product division produced 24478 tons of speciality steel which represents growth of around 8% over previous year. Higher value added product with thickness of 0.10 mm was also up by around 23%. The Company is making all its efforts to serve the market needs through various planned projects like 0.10 mm thick blade steel production enhancement. 430 BA finishing facilities are under advance stage and will be commissioned by March, 2013.
To control the product cost and protect environment, modernized “Acid Recovery Systems” was successfully installed during the year. Further various cost saving initiatives like reutilization of refractory, power savings etc. have been taken throughout the year to control the product costs. There has been special focus to maximize usage of stainless steel scrap in production to reduce overall cost of production. This also enables them to contribute to the green environment through recycling.
(B) Odisha Division
The Company has successfully operated stainless steel making facility with a capacity of 800,000 tons per annum and has started rolling of stainless steel products from this facility for over a year. The ramp-up and stabilization of finishing facilities are in progress. During the year under review, steel melting shop produced 95573 tons, hot strip mill processed 114137 tons and facilities in cold rolling mill processed 67351 tons of stainless steel. The project initially conceived in SEZ has been de-notificated during the year due to the changing global business scenario. The stainless steel facilities under operations at Odisha are state of art facilities and have substantially enhanced the product portfolio of the Company including wider width products of upto 1600 mm.
The ferro alloys production during the year stood at 57316 tons. There were challenges in procuring the chrome ore from domestic sources at cost effective prices, which impacted the overall production and the capacity utilizations during the year. However, in order to reduce the costs, the Company worked on improving chromium recoveries and higher usage of hard lumpy ore and replacing usage of coke with anthracite coal. The Company has also taken up the matter with various government agencies to rationalize the chrome ore bidding process.
The operations at 250 MW thermal power plant were adversely low on account of higher input prices of thermal coal and drop in prices of surplus power sold to the state grid. Only one of the two power plants was primarily producing power and it generated around 741 million units (net), of which around 119 million units were exported to Hisar plant. The production at 14 MW power plant was 21.56 million units (net) and the plant has achieved maximum days generation of 0.34 MU at a PLF of 101.19% in December, 2011.
The chromite mines division produced 32875 MT of chromite ore concentrate which is much higher than previous year production and also achieved 66,000 MT chrome ore from Mines pit for the year.
The coke oven facility was operated under lease with work arrangement for conversion of coal into coke. The coke oven battery successfully produced metallurgical coke with gradual ramp-up. For the year, the total production out of the coke oven facility stood at 285,368 tons of coke.
(C) Vizag Division
Vizag plant produces High Carbon Ferro Chrome (HCFC) with capacity of 40,000 tons per annum. The chrome ore required for the production of HCFC is sourced from the captive mines at Sukinda and the output is transferred to Hisar plant. During the year, the plant produced 24,832 tons of HCFC as compared to 32,836 tons during the previous year. The primary reason towards the slowdown during the year was due to shutdown of 16 MVA furnace for about two months for relining work and also the power restriction imposed by the state power distributing company, APEPDCL.
MANAGEMENT
DISCUSSIONS AND ANALYSIS
Thanks to a recharging of the US economy in the second half of 2011 and emergency measures undertaken in the Euro zone, the global economic outlook is expected to be better than that feared by many. Nevertheless, growth is expected to come down from 4% in 2011 to 3.5% in 2012. Gradual recovery is likely to resume in the major advanced economies and performance is expected to remain relatively robust in most emerging and developing economies. While Asia’s rising economies account for less than 30 per cent of global GDP, they contributed close to 60 per cent of total global growth in 2011 and are expected to do so in 2012, too. At the global level, Asia is poised to take on a stronger and more dominant role in future global economic developments. It is also likely to play an ever increasing role in the stability of the international monetary system.
India is still maintaining its growth amidst the backdrop of elevated inflation and higher interest rates. The economy is likely to remain weighed down by a combination of the weaker global economy and higher domestic financing rates. As per industry sources, the GDP which was initially expected to grow at around 7.5%, is now expected to grow at a more modest rate of about 7%. However, the year ahead promises to be interesting - both, in terms of the challenges that will arise, and the policy actions that may be deployed to address them.
Stainless Steel - The
Versatile, Green Metal
Stainless steel is a value-added alloy containing a minimum of 10.5% chromium. It is corrosion-resistant, strong, hygienic and fully recyclable. These properties make it an ideal choice for a variety of demanding industrial and consumer applications. Several life-cycle studies indicate that in many applications, the total cost of stainless steel is lower than that of competing materials, since stainless steel needs low maintenance.
Stainless steel is used in various industries. The consumption of stainless steel has been growing faster than any other metal in the world. It increases with economic development, as both its properties and its aesthetic image are highly competitive in terms of matching the highest standards of utility and design. Stainless steel is classified as per the alloying elements into different categories viz. 200, 300, and 400 series. With different chemical compositions, these series possess a variety of properties and hence find varied applications.Global stainless steel demand for 2011 was estimated at 32 million tons. Over the last 5 years, global demand for stainless steel has grown at a muted CAGR of 2.2 per cent. Demand growth declined during 2008 and 2009 due to economy slow down, leading to contraction in demand especially from the developed countries. However, demand rebounded in 2010, growing by 24 per cent in tune with the recovery of end user industries. The majority of the increase in stainless steel consumption emanates from emerging markets such as China and India. China’s share in global demand has almost doubled from 18 per cent in 2004 to 35 per cent in 2011.
CRISIL Research expects the long term global demand for stainless steel to increase at a CAGR of 4 to 5 per cent. Growth will be mainly driven by strong levels of growth expected in China and India, which together accounted for around 44 per cent of the global consumption in 2011.
Indian Market
Potential
India’s favourable demographic profile and rising proportion of its working population holds significant potential for stainless steel consumption across key end-user segments. India’s per capita stainless steel consumption at around 2 kg is still significantly lower than other countries such as USA (11.5kg), China (8.4 kg), and even the world average (4.6 kg). However, in the last 5 years, India’s stainless steel consumption increased at a healthy CAGR of 11 per cent against the paltry growth in global consumption at a CAGR of 2.2 per cent. In recent years, stainless steel demand from the Automotive, Railways and Transport (ART) segment has been rising owing to strong growth in the automobile industry and rising penetration of stainless steel in railway rolling stock. Architecture, Building and Construction (ABC) segment is expected to register the fastest growth largely due to rapid urbanisation and increasing modernisation along with an increasing usage of stainless steel in Metro stations, as well as commercial and retail complexes. Both the ART and ABC segments together accounted for around 14 per cent share in consumption. Emergence of cost-effective 200 series (chrome-manganese) of stainless steel made it affordable for average households to increase their appetite for stainless steel kitchenware, leading to a sustained demand for this metal in the kitchenware segment.
The process industry accounts for second largest share - 16 per cent of the consumption of stainless steel. Its growth is also aligned with the investments in end-user industries such as pharmaceuticals, food processing and petrochemicals.
With strong growth anticipated in ABC and ART segments, CRISIL Research expects that the demand growth for stainless steel in India will remain steady at a CAGR of 7.8 per cent over the period 2011-16.
India’s stainless steel demand currently stands at around 2.5 million tons, with imports accounting for almost 13 per cent of the demand. However, India has been a net exporter of stainless steel with exports accounting for 17 per cent of the production in 2010-11.
With 800,000 tons of new additional capacity in Odisha, Jindal Stainless now has the capability to produce 1.6 million tons of stainless steel and is now fully geared to capture the growth of the Indian market.
Strengths
• Experienced management team
• Capability to execute strategy and projects
• Innovation and technology (200 series)
• Efficient cost of capital
• Wide range of finished products
Opportunities
• Growing domestic demand
• Unexplored rural market and rapid urbanisation
• Increasing consumption of stainless steel in all sectors
• Investment of US$ 490 billion allocated in and also in the Eleventh Five Year Plan (2007-12) for core
Infrastructure sector such as power, road, railways, ports and airports
• Strong growth in heavy industries such as the automotive industry, infrastructure and oil and gas sectors
Threats
• China becoming a net exporter
• Protection of domestic industry in the West/ other countries
• Dumping by competitors
• Global economic slow down
• Market fluctuation
• Low import duty on stainless steel in India
• Higher power tariff in India
Key Challenges
• Global slowdown
• Delay in allocation of resources by regulatory authorities to enjoy the full benefit of the integration chain
OPERATIONAL
PERFORMANCE (STANDALONE)
The Company has for financial year ended 31st March 2012, achieved gross revenue of Rs. 84980.000 Millions as compared to Rs. 73510.00 Millions during the previous financial year, representing growth of around 16%. Domestic sales grew by around 14% and export sales grew by around 22%. EBIDTA for the financial year ended 31st March, 2012 was at Rs. 9040.000 Millions which is around 16% lower than the previous year figures of Rs 10810.000 Millions. Interest for the year ended 31st March, 2012 was Rs. 5170.000 Millions as against Rs. 3890.000 Millions for the previous financial year representing an increase of around 33%. The increase in interest is on account of start of operations of Phase II of the Odisha project. The exceptional gain/(loss) during the financial year ended 31st March, 2012 was at ( Rs. 2080.000) Millions as compared to last year corresponding figures of Rs. 540.000 Millions. The exceptional losses during the year ended 31st March, 2012 include losses on
account of fluctuation in foreign currency assets/liabilities amounting to Rs. 1570.000 Millions, provision of Rs. 360.000 Millions on account of outstanding legal dispute and write-off of earlier years amounting to Rs. 150.000 account of outstanding legal dispute and write-off of earlier years amounting to ` 150.000 Millions on account of modifications in electricity tariff calculation methodology. The profit/(loss) before tax and profit/(loss) after tax for the year stood at ( Rs.1540.000 Millions) and ( Rs. 1040.000 Millions) as compared to previous financial year’s comparative figures of Rs. 4470.000 Millions and Rs. 3180.000 Millions respectively. on account of modifications in electricity tariff calculation methodology. The profit/(loss) before tax and profit/(loss) after tax for the year stood at ( Rs.1540.000 Millions) and ( Rs. 104 Millions) as compared to previous financial year’s comparative figures of Rs. 4470.000 Millions and Rs. 3180.000 Millions respectively.
CONTINGENT LIABILITIES NOT PROVIDED FOR IN RESPECT OF
(Rs in millions)
|
Particular |
31.03.2012 |
31.03.2011 |
|
Counter Guarantee given to Company’s Bankers for the Guarantee given
by them on behalf of Company |
649.427 |
429.315 |
|
Letter of Credit outstanding |
9821.598 |
8113.232 |
|
Bills discounted with Banks |
3800.159 |
2629.073 |
|
Sales Tax demands against which company has preferred appeals. Excise Duty/Service Tax Show Cause Notices/Demands against which company has preferred appeals. Income tax demands against which Company has preferred appeals Claims and other liabilities against the company not acknowledge as debt |
1725.781 1081.649 705.566 385.975 |
28.068 954.441 662.138 954.730 |
|
Demand made by Sr. Dy. Director of Mines, Notified Authority Jaipur Road Circle, Orissa as cess on Chromite Ore production. The matter being pending with Honble Supreme Court. |
32.049 |
32.049 |
|
Demand made by Dy. Director of Mines, Jaipur Road Circle Orissa against which company has preferred appeal |
60.084 |
0.000 |
|
Guarantee given to custom authorities for import under EPCG Scheme. {Custom duty saved/to be saved as on 31st March, 2012 Rs. 25,23.508 Millions ( Rs. 23,14.454 Millions)} |
8934.334 |
8093.471 |
|
Letter of Comfort to banks against credit facilities/financial assistance availed by subsidiaries |
6610.368 |
3071.045 |
FIXED
ASSETS
·
Land
·
Building
·
Plant and Machinery
·
Electric Installation
·
Vehicles
·
Furniture, fixtures and
equipments
·
Power line and bay
extension
UNAUDITED STANDLONE
FINANCIAL RESULTS FOR THE QUARTER AND NINE MONTHS ENDED 31.12.2012
Rs. In Millions
|
|
Particulars |
Unaudited for the
quarter ended |
Unaudited for the
nine months ended |
|
|
|
|
31.12.2012 |
30.09.2012 |
31.12.2012 |
|
1 |
Income from
Operations: |
|
|
|
|
|
Gross Sales / Income from Operations |
27844.600 |
26644.300 |
78519.400 |
|
|
Less: Excise Duty on sales |
2079.100 |
2071.400 |
6114.100 |
|
|
(a) Net Sales / Income from Operations |
25765.500 |
24572.900 |
72405.300 |
|
|
(b) Other Operating Income |
77.200 |
65.700 |
245.000 |
|
|
Total Income from
Operations (net) [1 (a)+1 (b)] |
25842.700 |
24638.600 |
72650.300 |
|
2 |
Expenses |
|
|
|
|
|
(a) Cost of Material Consumed |
18538.200 |
18650.500 |
53996.100 |
|
|
(b) Purchase of Stock in Trade |
71.400 |
39.500 |
263.000 |
|
|
(c) Changes in Inventories of finished goods, work in progress and stock in trade |
247.300 |
(709.300) |
(2836.400) |
|
|
(d) Employee benefits expense |
593.300 |
600.500 |
1793.200 |
|
|
(e) Depreciation and amortisation expense |
1707.700 |
1713.700 |
5122.700 |
|
|
(f) Stores and Spares consumed |
1320.100 |
1232.600 |
3647.700 |
|
|
(g) Power & Fuel |
2270.100 |
2016.000 |
6464.900 |
|
|
(h) Other expenditure |
1595.300 |
1637.100 |
4629.300 |
|
|
Total Expenses |
26343.400 |
25180.600 |
73080.500 |
|
3 |
Profit / (Loss)
from Operations before other Income, Finance Cost and Exceptional Items (1-2) |
(500.700) |
(542.000) |
(430.200) |
|
4 |
Other Income |
116.000 |
95.800 |
358.800 |
|
5 |
Profit / (Loss) from
Ordinary Activities before finance cost and exceptional items (3+4) |
(384.700) |
(446.200) |
(71.400) |
|
6 |
Finance cost |
2628.200 |
2505.700 |
7205.000 |
|
7 |
Profit / (Loss) from
Ordinary Activities after finance cost but before exceptional items (5-6) |
(3012.900) |
(2951.900) |
(7276.400) |
|
8 |
Exceptional items - Gain / (Loss) - Refer note no 3 |
(796.700) |
677.600 |
(2210.400) |
|
9 |
Profit /(Loss) from
Ordinary Activities before tax (7+8) |
(3809.600) |
(2274.300) |
(9486.800) |
|
10 |
Tax expense |
(1235.700) |
(751.700) |
(3076.200) |
|
11 |
Net profit / (Loss)
from Ordinary Activities after tax (9-10) |
(2573.900) |
(1522.600) |
(6410.600) |
|
12 |
Extraordinary items |
- |
- |
- |
|
13 |
Net profit / (Loss)
for the period (11-12) |
(2573.900) |
(1522.600) |
(6410.600) |
|
14 |
Paid-up Equity Share Capital (face value of Rs. 2/- each) |
381.100 |
381.100 |
381.100 |
|
15 |
Reserves excluding revaluation reserve as per balance sheet of previous accounting year |
|
|
|
|
16 |
Earning per share
(EPS) (of Rs 2/-each) |
|
|
|
|
|
a) - Basic |
(13.55) |
(8.02) |
(33.74) |
|
|
b) - Diluted |
(13.55) |
(8.05) |
(33.74) |
|
|
(EPS for the quarter and nine months not annualised) |
|
|
|
|
A |
PARTICULARS OF
SHAREHOLDING |
|
|
|
|
1 |
Public Shareholding |
|
|
|
|
|
- Number of Shares |
98455963 |
98455963 |
98455963 |
|
|
- Percentage of Shareholding |
56.94 |
56.94 |
56.94 |
|
2 |
Promoters and
promoter group shareholding (a )
Pledged / Encumbered : |
|
|
|
|
|
Number of shares# |
65306625 |
65306625 |
65306625 |
|
|
% of shares (as a % of the total shareholding of promoter and promoter group) |
87.70 |
87.70 |
87.70 |
|
|
% of shares ( as a % of the total share capital* of the company) |
34.28 |
34.28 |
34.28 |
|
|
(b) Non -encumbered: |
|
|
|
|
|
Number of shares |
9160625 |
9,160625 |
9160625 |
|
|
% of shares (as a % of the total shareholding of promoter and promoter group) |
12.30 |
12.30 |
12.30 |
|
|
% of shares ( as a % of the total share capital* of the company) |
4.81 |
4.81 |
4.81 |
|
|
Particulars |
3 months ended
(31st Dec 2012) |
|
B |
INVESTOR COMPLAINTS |
|
|
|
Pending at the beginning of the quarter |
- |
|
|
Received during the quarter |
2 |
|
|
Disposed of during the quarter |
2 |
|
|
Remaining unresolved at the end of the quarter |
- |
Notes:
1The financial results of the Company for the
quarter and nine months ended 31st Dec 2012 have been reviewed by the Audit committee
and taken on record by the Board of Directors at their respective meetings held
on 4th & 5th February, 2013 and the limited review of the same has been
carried out by the statutory auditors.
2 The Board of Directors on 24th December,
2012, has, subject to approval of shareholders under Section 81(1A) of the
Companies Act, 1956 through postal ballot, approved the issuance upto
2,71,00,000 equity shares in aggregate on preferential basis in two tranches of
1,35,50,000 equity shares each, (i) on or before 31st March, 2013 and (ii) on
or before 30th June, 2013 at a price of Rs.74/- per share, determined as per
applicable SEBI (ICDR) Regulations 2009, to an existing Promoter Group Company
"Jindal Overseas Holdings Limited".
3 Due to volatile movement in value of the
rupee against US Dollar, the net foreign exchange gain/loss has been considered
by the Company as exceptional in nature.
4 Results have been adversely impacted during
the quarter ended 31st December 2012 on account of:
i) Stress on margins due to continuing subdued
global economic conditions
ii) Adverse exchange fluctuation arising on
account of depreciation of Indian Rupee
iii) Presently Stainless steel production
facility at Odisha is under ramp up.
5 The scheme for reworking of company's rupee
debt under the CDR mechanism has been implemented by majority of the lenders.
The restructuring of syndicated ECB facility of USD 250 million is under
process.
6 As the Company's business activity falls
within a single primary business segment viz. 'stainless steel', the disclosure
requirement of Accounting Standard (AS-17) on "Segment Reporting" is
not applicable.
7 The previous quarter/year figures have been
regrouped wherever necessary.
AS PER WEBSITE DETAILS
Press Release:
JINDAL STAINLESS GROSS SALES UP BY 35% TO RS. 26640.000 MILLIONS
(Wednesday, October 31, 2012)
Highlights for the Quarter:
·
Stainless Steel melting
production volume up by 38% to 245603 tons
·
Stainless Steel sales
volume up by 34% to 219541tons
·
Production and sales
volume are up due to ramping up of Jajpur unit
·
Gross Sales up by 35% to
Rs.26640.000 Millions
·
EBITDA down by 45%
(y-o-y) to Rs.1170.000 Millions
·
After Tax Loss of
Rs.1520.000 Millions
During the 2nd quarter ended 30th September
2012 the company has achieved Stainless Steel melting production of 245,603
tons, ferro alloys production of 26,616 tons and net power generation of 311 MU
which is around 38%, 30% and 102% up respectively from the previous year’s corresponding figures.
Further, the Stainless Steel sales volume also witnessed increase of around 34%
(y-o-y) to 219541 tons. Gross sales for the 2nd quarter ended 30th September,
2012 grew by 35% to Rs. 26640.000 Millions as compared to Rs.19760.000 Millions
in corresponding quarter ended 30th September, 2011.
EBITDA for the quarter is down by 45% in
comparison to corresponding quarter. One
of the major reasons for fall in EBITDA margin has been cheap imports of Stainless
Steel material into India. Besides, phase 2 of the Jajpur plant being in the
ramping up stage and the slack economic conditions both in India and abroad
also had a negative bearing on the profit margins of the company.
Jindal Stainless Limited is country’s largest
and one of the leading players in stainless steel business worldwide. Being
fully recyclable, low-maintenance and durable material, stainless steel is one
of the key building blocks for a sustainable future.
Considering the versatility and beauty of
Stainless steel, the company is continuously striving for better safety
standards in construction, innovation, new products, and better usage of
existing technology. Jindal Stainless is heralding a revolution in the ABC and
ART sectors and looks forward to moving ahead, with its stakeholders’ support.
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Decaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent
government authority for any violation of anti-corruption laws or international
anti-money laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government official
or a family member or close business associate of a Government official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on Corporate
Governance to identify management and governance. These factors often have been
predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms and
conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs. 54.48 |
|
|
1 |
Rs. 82.72 |
|
Euro |
1 |
Rs. 71.27 |
INFORMATION DETAILS
|
Report Prepared
by : |
VRN |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
3 |
|
PAID-UP CAPITAL |
1~10 |
3 |
|
OPERATING SCALE |
1~10 |
3 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
3 |
|
--PROFITABILIRY |
1~10 |
3 |
|
--LIQUIDITY |
1~10 |
3 |
|
--LEVERAGE |
1~10 |
3 |
|
--RESERVES |
1~10 |
3 |
|
--CREDIT LINES |
1~10 |
3 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
YES |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
DEFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
27 |
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a composite
of weighted scores obtained from each of the major sections of this report. The
assessed factors and their relative weights (as indicated through %) are as
follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest capability
for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
- |
NB |
New Business |
- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.