MIRA
INFORM REPORT
|
Report Date : |
04.10.2013 |
IDENTIFICATION DETAILS
|
Name : |
JSW STEEL LIMITED |
|
|
|
|
Formerly Known
As : |
JINDAL VIJAYNAGAR STEEL LIMITED |
|
|
|
|
Registered
Office : |
JSW Centre, Bandra Kurla Complex, Bandra (East), Mumbai - 400051, Maharashtra |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as
on) : |
31.03.2013 |
|
|
|
|
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
: |
9574
(Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
A (60) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
Maximum Credit Limit : |
USD 797000000 |
|
|
|
|
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 31st, 2013
|
Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
|
India |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
INDIAN ECONOMIC OVERVIEW
We are living in a world
where volatility and uncertainty have become the New Normal. We saw a
change of government in countries like
There is another
megatrend happening. The World order is changing as economic power shifts from
West to East. According to McKinsey study, it took
The years after the
outbreak of the global financial crisis, the world economy continues to remain
fragile. The Indian economy demonstrated remarkable resilience in the initial
years of the contagion but finally lost ground last year. GDP growth slowed
down. Currency has been weakening. There is a marked deceleration in
agriculture, industry and services. Dampening sentiment led to a cut-back in
investment as well as private consumption expenditure. Inflation remained
at high levels fuelled by the pressure from the food and fuel sectors. The
large fiscal and current account deficit s continued to cause grave concern. It
is imperative that
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CARE |
|
Rating |
A1+ = Commercial Paper Issue |
|
Rating Explanation |
Very strong degree of safety and lowest credit risk. |
|
Date |
14.06.2013 |
RBI DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter in
the publicly available RBI Defaulters’ list.
EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of
31-03-2012.
LOCATIONS
|
Registered/ Regional Office: |
JSW Centre, Bandra Kurla Complex, Bandra (East), Mumbai - 400051,
Maharashtra, India |
|
Tel. No.: |
91-22-42861000 |
|
Fax No.: |
91-22-42863000 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Corporate Office 1: |
Victoria House, 2nd Floor, Pandurang Budhkar Marg, Lower
Parel, Mumbai – 400013, Maharashtra, India |
|
Tel No. : |
91-22-24927000 / 43437800 |
|
Email : |
|
|
|
|
|
Corporate Office 2: |
The Enclave, Maratha
Udhog Bhavan, New Prabhadevi Road, Prabhadevi, |
|
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 : |
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 |
|
|
|
|
Branch Office : |
123/124, BM Tower, NPII, New Palasia, Indore, Madhya Pradesh, India |
|
|
|
|
Other Branch Offices : |
Located At:
· Karnataka · Tamilnadu · Andhra Pradesh ·
·
· Madhya Pradesh |
|
|
|
|
Additional Main Office : |
Located At: · Mumbai ·
· Rajasthan |
|
|
|
|
Overseas Office : |
JSW Steel (USA) Inc. JSW Steel Service Centre
(UK) Limited |
DIRECTORS
As on 31.03.2013
|
Name : |
Mrs. Savitri Devi Jindal |
|
Designation : |
Chairperson |
|
|
|
|
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 : |
Mrs. Punita Kumar Sinha |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Hiromu Oka |
|
Designation : |
Nominee Director of JFE Steel Corporation,
Japan |
|
|
|
|
Name : |
Mr. P.B. Ramamurthy |
|
Designation : |
Nominee Director of KSIIDC |
|
|
|
|
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 |
|
Date of Appointment : |
09.05.2005 |
|
|
|
|
Name : |
Mr. Kannan Vijayaraghavan |
|
Designation : |
Director |
|
Date of Birth/Age : |
04.05.1959 |
|
Qualification : |
Fellow Member of the |
|
Date of Appointment : |
16.06.2008 |
KEY EXECUTIVES
|
Name : |
Lancy
Varghese |
|
Designation : |
Company
Secretary |
SHAREHOLDING PATTERN
As on 30.06.2013
|
Category of Shareholder |
Total No. of Shares |
Total Shareholding as a % of Total No. of Shares |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
3997003 |
1.65 |
|
|
907952 |
0.38 |
|
|
76008304 |
31.44 |
|
|
80913259 |
33.47 |
|
|
|
|
|
|
5704612 |
2.36 |
|
|
5704612 |
2.36 |
|
Total shareholding of Promoter and Promoter Group (A) |
86617871 |
35.83 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
2337883 |
0.97 |
|
|
11172285 |
4.62 |
|
|
1237500 |
0.51 |
|
|
43485005 |
17.99 |
|
|
58232673 |
24.09 |
|
|
|
|
|
|
16078172 |
6.65 |
|
|
|
|
|
|
18156425 |
7.51 |
|
|
8193495 |
3.39 |
|
|
54443408 |
22.52 |
|
|
5344882 |
2.21 |
|
|
1205632 |
0.50 |
|
|
3345438 |
1.38 |
|
|
44547456 |
18.43 |
|
|
96871500 |
40.08 |
|
Total Public shareholding (B) |
155104173 |
64.17 |
|
Total (A)+(B) |
241722044 |
100.00 |
|
(C) Shares held by Custodians and against which Depository Receipts
have been issued |
|
|
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
Total (A)+(B)+(C) |
241722044 |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer and Seller of Iron and Steel Products. |
||||||||||||
|
|
|
||||||||||||
|
Products : |
|
PRODUCTION STATUS (AS ON 31.03.2013)
|
Particulars |
Unit |
Installed
Capacity |
Actual
Production |
|
MS Slabs |
Tonnes |
8300000 |
6541921 |
|
Hot Rolled Coils/Steel Plates/Sheets |
Tonnes |
8200000 |
6202129 |
|
Hot Rolled Steel Plates |
Tonnes |
320000 |
79308 |
|
Cold Rolled Coils/Sheets |
Tonnes |
1825000 |
1658906 |
|
Galvanised/Galvalum Coils/Sheets |
Tonnes |
925000 |
996530 |
|
Colour Coating Coils / Sheets |
Tonnes |
426000 |
188569 |
|
Steel Billets and Bloom |
Tonnes |
2500000 |
1977543 |
|
Long Rolled Products |
Tonnes |
2450000 |
1798173 |
NOTES:
1) As certified by
the management and accepted by auditors, being a technical matter.
2) Production of
Cold Rolled Coils/Sheets includes 59,483 tonnes (previous year 53,438 tonnes)
from a third party on a job work basis.
3) Production of
Galvanized/Galvalum Coils/Sheets includes 61,107 tonnes (previous year 55,734
tonnes) from a third party on a job work basis.
GENERAL INFORMATION
|
No. of Employees : |
9574
(Approximately) |
||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Bankers : |
· Allahabad Bank · Bank of Baroda · Bank of India · ICICI Bank Limited · IDBI Bank Limited · Indian Bank · Indian Overseas Bank · Punjab National Bank · State Bank of India · State Bank of Mysore · State Bank of Patiala · Union Bank of India · Vijaya Bank |
||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Facilities : |
NOTES: Long Term
Borrowings: Details of
Security: (i)
The 10.34% NCDs aggregating to Rs. 10000.000 Millions
are secured / to be secured by way of first pari passu charge on fixed assets
related to 2.8 mtpa expansion project located at Vijaynagar works and a flat
at Vasind situated in the state of Maharashtra. (ii)
The 11% NCDs aggregating to Rs. 10000.000 Millions
are secured by way of first pari passu charge on movable and immovable
properties of 2.8 mtpa expansion project located at Vijayanagar works and a
flat at Vasind situated in the state of Maharashtra. (iii)
The 10.25% NCDs aggregating to Rs. 5000.000 Millions
are secured by way of mortgage in respect of all immovable and movable
properties both present and future located at Tarapur Works and Vasind Works
in the State of Maharashtra. (iv)
The 10.60% NCDs aggregating to Rs. 3500.000
Millions are secured by: -
pari passu first charge by way of legal mortgage
on land situated in the State of Gujarat -
pari passu first charge by way of equitable
mortgage on fixed assets of the new 5 mtpa Hot Strip Mill at Toranagallu
village in the State of Karnataka. (v)
The 10.10 % NCDs aggregating to Rs. 10000.000
Millions are secured by: -
pari passu first charge by way of legal mortgage
on all immovable properties both present and future located at Tarapur Works
and Vasind Works in the State of Maharashtra. -
pari passu first charge on all immovable
properties and movable assets both present and future located at Salem Works
in the State of Tamil Nadu. -
(vi)
The 11.82% NCDs aggregating to Rs. 146.600
Millions are secured by: -
First charge on land situated in the state of
Gujarat. -
First charge on Fixed Assets situated at Salem
Works in the state of Tamilnadu. -
(vii)
The 11.82 % NCDs aggregating to Rs. 253.500
Millions are secured by -
Pari passu first charge by way of legal mortgage
on a flat situated at Mumbai, in the State of Maharashtra. -
Pari passu first charge by way of equitable
mortgage of the Company’s immovable properties relating to the 100MW and
130MW Power Plants at Toranagallu village in the State of Karnataka -
(viii)
Rupee Term Loans from Banks / Foreign Currency
Term Loan from Bank are secured / to be secured as under : -
Rupee Term Loans aggregating to Rs. 67.600
Millions and Foreign Currency Term Loans aggregating to Rs. 813.900 Millions
are secured by a first charge supported by an equitable/ registered Mortgage
of movable and immovable properties and assets situated at Salem Works in the
state of Tamilnadu and a second pari passu charge on the current assets at
Salem Works. -
Foreign Currency Term Loans aggregating to Rs.
2209.600 Millions by exclusive first charge by way of equitable mortgage in
respect of all movable and immovable properties of Cold Rolling Mill Complex
at Toranagallu village in the State of Karnataka. -
Rupee Term Loans aggregating to Rs. 247.500
Millions and Foreign Currency Term Loans aggregating to Rs. 1594.200 Millions
by exclusive first charge by way of equitable mortgage in respect of all
movable and immovable properties both present and future of 2.8 mtpa
expansion project at Toranagallu village, in the State of Karnataka. -
Foreign Currency Term Loans aggregating to Rs.
6662.700 Millions by exclusive first charge by way of equitable mortgage in
respect of all movable and immovable properties of Hot Strips Mill at
Toranagallu village in the State of Karnataka. -
Rupee Term Loans aggregating to Rs. 44590.900
Millions by pari passu first charge by way of mortgage in respect of all
movable and immovable properties both present and future, first
charge/Assignment of all the assets and first charge on all the Bank Accounts
of 3.2 mtpa expansion project at Toranagallu village in the State of
Karnataka. -
Rupee Term Loan aggregating to Rs. 4950.000
Millions by exclusive first mortgage and charge on all movable and immovable
properties both present and future, and first charge on the Bank Accounts of
the 300 MW Power Plant - CPP IV at Toranagallu village in the State of
Karnataka. -
Rupee Term Loan aggregating to Rs. 8357.100
Millions by first mortgage and charge of all immovable properties both
present and future, and a first charge by way of hypothecation of all movable
properties both present and future of the Beneficiation Plant (6 x 500 tph)
and Pellet Plant (4.2 mtpa) at Toranagallu village in the State of Karnataka. -
Rupee Term Loan aggregating to Rs. 10000.000
Millions by first pari passu charge on 3.8 mtpa upstream assets (other than
assets specifically carved out) at Vijaynagar works, Toranagallu village in
the State of Karnataka. -
(ix)
Rupee Term Loan from Financial Institution
aggregating to Rs. 254.500 Millions are secured by exclusive first charge by
way of hypothecation of Bombardier Challenger 300 aircraft. Terms of Repayment/ Redemption/ Conversion: Terms of
Conversion/ Redemption of Bonds/ Non-Convertible Debentures (NCDs ): (i)
The 10.34% Secured NCDs of Rs. 10 lacs each
aggregating Rs.10000.000 Millions are redeemable in three tranches as under : -
Rs. 3300.000 Millions on 18.1.2022 -
Rs. 3300.000 Millions on 18.1.2023 -
Rs. 3400.000 Millions on 18.1.2024 (i)
The 11% Secured NCDs of Rs. 10 lacs each
aggregating Rs. 10000.000 Millions are redeemable with call and put option
excersiable on 16.03.17 and 16.03.19 as under: -
Rs. 3300.000 Millions each on 16.3.2021 -
Rs. 3300.000 Millions each on 16.3.2022 -
Rs. 3400.000 Millions each on 16.3.2023 (ii)
The 10.25% Secured NCDs of Rs. 10 lacs each
aggregating Rs. 5000.000 Millions are redeemable in 3 equal annual
installments of Rs. 1666.700 Millions each from 17.02.2016 to 17.02.2018. (iii)
The 10.60% Secured NCDs of Rs. 10 lacs each
aggregating Rs. 3500.000 Millions are redeemable in two tranches as under : -
8 half yearly installments of Rs. 218.750
Millions each from 02.01.2016 to 02.07.2019 -
8 half yearly installments of Rs. 218.750
Millions each from 02.08.2016 to 02.02.2020. (iv)
The 10.10% Secured NCDs of Rs. 10 lacs each
aggregating Rs. 10000.000 Millions are redeemable in two tranches as under : -
16 quarterly installments of Rs. 312.500 Millions
each from 04.02.2014 to 04.11.2017 -
16 quarterly installments of Rs. 312.500 Millions
each from 15.06.2014 to 15.03.2018. (v)
The 11.82% Secured NCDs of Rs. 10 lacs each aggregating
Rs. 146.600 Millions are redeemable in 7 quarterly installments of Rs. 20.900
Millions each from 01.07.2013 to 01.01.2015. (vi)
The 11.82% Secured NCDs of Rs. 10 lacs each
aggregating Rs. 253.500 Millions is redeemable in 13 quarterly installments of
Rs. 19.500 Millions each from 15.04.2013 to 15.04.2016. Terms of Repayment of Secured Term Loans: (A)
Rupee Term Loan
from Banks of : (i)
Rs. 247.500 Millions is repayable in 12 quarterly
installments of Rs. 20.600 Millions each from 30.4.2013 to 31.1.2016. (ii)
Rs. 44.600 Millions is repayable in 3 quarterly
installment of Rs. 10.900 Millions each from 30.6.2013 to 31.12.2013 and 1
quarterly installment of Rs. 11.700 Millions on 31.3.2014. (iii)
Rs. 23.000 Millions is repayable in 3 quarterly
installments of Rs. 05.700 Millions each from 30.6.2013 to 31.12.2013 and 1
quarterly installment of Rs. 05.900 Millions on 31.3.2014. (iv)
Rs. 28604.600 Millions is repayable as under : -
8 quarterly installments of Rs. 752.800 Millions
from 30.6.2013 - 31.3.2015 -
8 quarterly installments of Rs. 1881.900 Millions
from 30.6.2015 - 31.3.2017 -
2 quarterly installments of Rs. 2509.100 Millions
from 30.6.2017 - 30.9.2017 -
1 quarterly installments of Rs. 2509.400 Millions
on 31.12.2017 (v)
Rs. 12187.500 Millions is repayable as under : -
4 quarterly installments of Rs. 78.100 Millions
each from 30.6.2013 - 31.3.2014 -
8 quarterly installments of Rs. 312.500 Millions
each from 30.6.2014 - 31.3.2016 -
12 quarterly installments of Rs. 781.300 Millions
each from 30.6.2016 - 31.3.2019. (vi)
Rs. 3798.800 Millions is repayable as under : -
8 quarterly installments of Rs. 100.000 Millions
each from 1.4.2013 - 1.1.2015 -
8 quarterly installments of Rs. 250.000 Millions
each from 1.4.2015 - 1.1.2017 -
3 quarterly installments of Rs. 333.200 Millions
each from 1.4.2017 - 1.10.2017. (vii)
Rs. 8357.100 Millions is repayable in 26
quarterly installments of Rs. 321.400 Millions each from 1.7.2013 to
1.10.2019. (viii)
Rs. 4950.000 Millions is repayable in 12
quarterly installments of Rs. 412.500 Millions each from 1.4.2013 to 1.1.2016. (ix)
Rs. 10000.000 Millions is repayable as under : -
16 quarterly installments of Rs. 125.000 Millions
each from 30.6.2014 - 31.3.2018 -
12 quarterly installments of Rs. 375.000 Millions
each from 30.6.2018 - 31.3.2021 -
4 quarterly installments of Rs. 437.500 Millions
each from 30.6.2021 - 31.3.2022 -
2 quarterly installments of Rs. 875.000 Millions
each from 30.6.2022 - 30.9.2022 (B)
Foreign Currency
Term Loan from Banks of : (i)
Rs. 475.900 Millions is repayable in 5 half yearly
installments of Rs. 95.200 Millions each from 16.6.2013 to 16.6.2015. (ii)
Rs. 1733.7000 Millions is repayable in 5 half
yearly installments of Rs. 346.700 Millions each from 8.4.2013 to 7.4.2015. (iii)
Rs. 1529.700 Millions is repayable in 3 half
yearly installments of Rs. 509.900 Millions each from 8.7.2013 to 6.7.2014. (iv)
Rs. 64.500 Millions is repayable on 23.9.2013. (v)
Rs. 6662.700 Millions is repayable in 2 half
yearly installments of Rs. 951.800 Millions each from 28.5.2013 to 27.11.2013
and 1 half yearly installment of Rs. 4759.100 Millions on 27.5.2014 (vi)
Rs. 271.900 Millions is repayable on 8.6.2013. (vii)
Rs. 542.000 Millions is repayable in 6 half
yearly installments of Rs. 90.300 Millions each from 9.9.2013 to 9.3.2016. (C)
Rupee Term Loan
from Financial Institutions of : (i)
Rs. 102.900 Millions is repayable in 27 monthly
installments of Rs. 03.800 Millions each from 11.4.2013 to 11.6.2015. (ii)
Rs. 50.800 Millions is repayable in 27 monthly
installments of Rs. 01.900 Millions each from 20.4.2013 to 20.6.2015. (iii)
Rs. 54.600 Millions is repayable in 28 monthly
installments of Rs. 01.950 Millions each from 2.4.2013 to 02.7.2015. (iv)
Rs. 46.200 Millions is repayable in 27 monthly
installments of Rs. 01.700 Millions each from 15.4.2013 to 15.7.2015. Details of Security Working capital loans of Rs. 2666.100 Millions
are secured by : -
pari passu first charge by way of hypothecation
of Stocks of Raw Materials, Finished Goods, Work-in-Process, Consumable
Stores and Spares and Book Debts / Receivables of the Company, both present
and future. -
pari passu second charge on movable properties
and immovable properties forming part of the Fixed/Blocked assets of the
company, both present and future except such properties as may be
specifically excluded. |
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
Deloitte Haskins
and Sells Chartered
Accountants |
|
|
|
|
Associates/Subsidiaries : |
· JSW Steel (Netherlands) B.V. · JSW Steel (UK) Limited · Argent Independent Steel (Holdings) Limited · JSW Steel Service Centre (UK) Limited · JSW Steel Holding (USA) Inc. · JSW Steel (USA) Inc. · Periama Holdings, LLC · Purest Energy, LLC · Meadow Creek Minerals, LLC · Hutchinson Minerals, LLC · R.C. Minerals, LLC · Keenan Minerals, LLC · Peace Leasing, LLC · Prime Coal, LLC · Planck Holdings, LLC · Rolling S Augering, LLC · Periama Handling, LLC · Lower Hutchinson Minerals, LLC · Caretta Minerals, LLC · JSW Panama Holdings Corporation · Inversiones Eroush Limitada · Santa Fe Mining · Santa Fe Puerto S.A. · JSW Natural Resources Limited · JSW Natural Resources Mozambique Limitada · JSW ADMS Carvo Lda · JSW Mali Resources SA (w.e.f. 18.02.2013) · JSW Steel Processing Centres Limited · JSW Bengal Steel Limited · JSW Natural Resources India Limited · Barbil Beneficiation Company Limited · JSW Jharkhand Steel Limited · JSW Building Systems Limited · JSW Steel East Africa Limited · Amba River Coke Limited · JSW Energy (Bengal) Limited · JSW Natural Resource Bengal Limited (w.e.f. 03.04.2012) · JSW Steel Coated Products Limited (w.e.f. 31.08.2012) · Jindal Praxair Oxygen Company Private Limited · JSW Ispat Steel Limited · JSW Energy (Bengal) Limited (upto 04.03.2012) |
|
|
|
|
Joint Venture : |
· Vijayanagar Minerals Private Limited · Rohne Coal Company Private Limited · JSW Severfield Structures Limited · Gourangdih Coal Limited · Toshiba JSW Turbine and Generator Private Limited · MJSJ Coal Limited · GEO Steel LLC · JSW Structural Metal Decking Limited · JSW MI Steel Service Center Private Limited |
|
|
|
|
Other Related Parties : |
· JSW Energy Limited · JSL Limited · JSW Realty and Infrastructure Private Limited · Jindal Saw Limited · Jindal Steel and Power Limited · JSOFT Solutions Limited · Jindal Industries Limited · Jindal Aluminum Limited · JSW Cement Limited · JSW Jaigarh Port Limited · Reynold Traders Private Limited · Raj West Power Limited · JSW Power Trading Company Limited · JSW Aluminim Limited · P Jindal Foundation · JSW Infrastructure Limited · South West Port Limited · JSW Techno Projects Management Limited · South West Mining Limited · JSL Architecture Limited · JSW Projects Limited · Sapphire Technologies Limited · Jindal Technologies and Management Services Private Limited |
CAPITAL STRUCTURE
As on 31.03.2013
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
2000000000 |
Equity Shares |
Rs.10/- each |
Rs.20000.000 Millions |
|
1000000000 |
Preferences Shares |
Rs.10/- each |
Rs.10000.000 Millions |
|
|
TOTAL
|
|
Rs.30000.000
Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
223117200 |
Equity Shares |
Rs.10/- each
|
Rs.2231.200
Millions |
|
|
Equity Shares Forfeited (Amount Originally
Paid-Up) |
|
Rs.610.300
Millions |
|
279034907 |
10% Cumulative Redeemable Preferences Shares
Full Paid Up |
Rs.10/- each
|
Rs.2790.300
Millions |
|
|
TOTAL |
|
Rs.5631.800 Millions |
Notes:
Rights, preferences and restrictions attached to
Equity shares:
The company has a
single class of equity shares. Each shareholder is eligible for one vote per
share held (other than the shares that were represented by underlying GDR’s
which did not carry a voting right) . The dividend proposed by the Board of
Directors is subject to the approval of the shareholders. In the event of
liquidation, the equity shareholders are eligible to receive the remaining
assets of the company after distribution of all preferential amounts, in
proportion to their shareholding. Nil (previous year 26,00,938) equity shares
represent the shares underlying outstanding Global Depository Receipts (GDRs).
Each GDR represents 1 underlying equity share. The GDRs have been converted to
equity shares during the year.
Rights, preferences and restrictions attached to
Preference shares:
The company has a
single class of preference shares. They are redeemable at par in four equal
‘quarterly installments commencing from 15 December 2017. The shares carry a
right to receive 10% dividend every year till redemption. In the event of
liquidation, the preference shareholders are eligible to receive the
outstanding amount after distribution of all other preferential amounts, in
proportion to their shareholding.
Shareholders
holding more than 5% shares in the company are set out below:
|
Particular |
No. of Shares |
% |
|
Equity
(excluding shares represented by underlying GDRs) |
|
|
|
JFE Steel International Europe B.V |
36068518 |
16.17 |
|
JFE Steel Corporation |
-- |
-- |
|
Jindal South West Holdings Limited |
17284923 |
7.75 |
|
JSW Energy Investments Private Limited |
13764364 |
6.17 |
|
|
|
|
|
Preference
Shares |
|
|
|
ICICI Bank Limited |
12707730 |
45.05 |
|
IDBI Bank Limited |
69734847 |
24.99 |
|
Life Insurance Corporation of India |
36348783 |
13.03 |
|
IFCI Limited |
21262362 |
7.62 |
FINANCIAL DATA
[all figures are
in Rupees Millions]
|
SOURCES
OF FUNDS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
I.
EQUITY
AND LIABILITIES |
|
|
|
|
(1)Shareholders' Funds |
|
|
|
|
(a) Share Capital |
5631.800 |
5631.800 |
5631.800 |
|
(b) Reserves & Surplus |
193741.900 |
179343.100 |
161327.100 |
|
(c) Money received against share
warrants |
0.000 |
0.000 |
5293.800 |
|
|
|
|
|
|
(2) Share Application
money pending allotment |
0.000 |
0.000 |
0.000 |
|
Total Shareholders’ Funds (1) + (2) |
199373.700 |
184974.900 |
172252.700 |
|
|
|
|
|
|
(3) Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
154342.600 |
115280.900 |
88679.000 |
|
(b) Deferred tax liabilities (Net) |
34502.300 |
30120.900 |
23170.400 |
|
(c) Other long term liabilities |
1940.600 |
827.200 |
4499.000 |
|
(d) long-term provisions |
395.100 |
329.000 |
218.200 |
|
Total Non-current Liabilities (3) |
191180.600 |
146558.000 |
116566.600 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a) Short term borrowings |
11095.300 |
7741.300 |
18794.300 |
|
(b) Trade payables |
92743.600 |
91844.500 |
60098.200 |
|
(c) Other current
liabilities |
48739.800 |
71825.200 |
44284.200 |
|
(d) Short-term provisions |
3020.500 |
2269.200 |
3587.800 |
|
Total Current Liabilities (4) |
155599.200 |
173680.200 |
126764.500 |
|
|
|
|
|
|
TOTAL |
546153.500 |
505213.100 |
415583.800 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i) Tangible assets |
276044.700 |
270716.900 |
210891.100 |
|
(ii) Intangible Assets |
343.200 |
188.900 |
130.400 |
|
(iii) Capital
work-in-progress |
50339.700 |
24767.700 |
56899.400 |
|
(iv) Intangible assets under development |
405.700 |
270.400 |
181.200 |
|
(b) Non-current Investments |
44956.100 |
42122.000 |
38318.100 |
|
(c) Deferred tax assets (net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
30839.900 |
26514.400 |
19820.100 |
|
(e) Other Non-current assets |
0.800 |
15.800 |
0.800 |
|
Total Non-Current Assets |
402930.100 |
364596.100 |
326241.100 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a) Current investments |
1404.500 |
2012.200 |
2670.000 |
|
(b) Inventories |
47991.000 |
51790.800 |
41384.100 |
|
(c) Trade receivables |
18622.000 |
12846.200 |
8386.500 |
|
(d) Cash and cash
equivalents |
14017.900 |
29560.200 |
18868.000 |
|
(e) Short-term loans and
advances |
61188.000 |
44407.600 |
18034.100 |
|
(f) Other current assets |
0.000 |
0.000 |
0.000 |
|
Total Current Assets |
143223.400 |
140617.000 |
89342.700 |
|
|
|
|
|
|
TOTAL |
546153.500 |
505213.100 |
415583.800 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
354918.100 |
321226.600 |
233671.100 |
|
|
|
Other Income |
2608.800 |
1793.000 |
2345.100 |
|
|
|
TOTAL (A) |
357526.900 |
323019.600 |
236016.200 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of materials consumed |
225903.700 |
209601.100 |
148030.900 |
|
|
|
Purchases of traded goods |
100.000 |
775.000 |
1822.300 |
|
|
|
Employee benefits expense |
6709.700 |
6258.700 |
5344.700 |
|
|
|
Other expenses |
60841.100 |
51261.900 |
37534.000 |
|
|
|
Exceptional Items |
3672.100 |
8209.600 |
0.000 |
|
|
|
Changes in
inventories of Finished goods, Work-in-progress and Stock-in-Trade |
(1724.600) |
(2978.100) |
(6829.800) |
|
|
|
TOTAL (B) |
295502.000 |
273128.200 |
185902.100 |
|
|
|
|
|
|
|
|
Less |
PROFIT
/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
62024.900 |
49891.400 |
50114.100 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
17244.800 |
11864.100 |
8541.700 |
|
|
|
|
|
|
|
|
|
|
PROFIT
/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
44780.100 |
38027.300 |
41572.400 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
19738.900 |
17081.700 |
13787.100 |
|
|
|
|
|
|
|
|
|
|
PROFIT / (LOSS)
BEFORE TAX (E-F) (G) |
25041.200 |
20945.600 |
27785.300 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
7029.000 |
4687.000 |
7678.600 |
|
|
|
|
|
|
|
|
|
|
PROFIT / (LOSS)
AFTER TAX (G-H) (I) |
18012.200 |
16258.600 |
20106.700 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
19873.000 |
27883.600 |
53277.800 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
1810.000 |
23250.000 |
42000.000 |
|
|
|
Dividend on Preferences Shares |
279.000 |
279.000 |
279.000 |
|
|
|
Proposed Final Dividend on Equity Shares |
2231.200 |
1673.400 |
2733.200 |
|
|
|
Corporate Dividend Tax |
426.600 |
316.800 |
488.700 |
|
|
|
Transfer From/To Debenture Redemption Reserve |
78.200 |
(1250.000) |
0.000 |
|
|
BALANCE CARRIED
TO THE B/S |
33060.200 |
19873.000 |
27883.600 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN FOREIGN
CURRENCY |
|
|
|
|
|
|
|
F.O.B. Value of Exports |
69693.500 |
53752.200 |
33282.500 |
|
|
|
Sale of Carbon Credits |
170.700 |
133.700 |
386.700 |
|
|
|
Interest Income |
1808.800 |
1078.300 |
457.600 |
|
|
TOTAL EARNINGS |
71673.000 |
54964.200 |
34126.800 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
104010.900 |
123970.500 |
87326.400 |
|
|
|
Stores & Spares |
4671.000 |
3723.900 |
2784.400 |
|
|
|
Capital Goods |
17213.900 |
9755.300 |
14829.900 |
|
|
TOTAL IMPORTS |
125895.800 |
137449.700 |
104940.700 |
|
|
|
|
|
|
|
|
|
|
Earnings /
(Loss) Per Share (Rs.) |
|
|
|
|
|
|
-
Basic |
79.28 |
71.42 |
97.17 |
|
|
|
-
Diluted |
79.28 |
71.42 |
96.33 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
PAT / Total Income |
(%) |
5.04
|
5.03 |
8.52
|
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
7.05
|
6.52 |
11.89
|
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
7.15
|
4.78 |
8.68
|
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.13
|
0.11 |
0.16
|
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
0.83
|
0.67 |
0.62
|
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
0.92
|
0.81 |
0.70
|
LOCAL AGENCY FURTHER INFORMATION
|
Sr. No. |
Check List by Info Agents |
Available in Report
(Yes / No) |
|
1] |
Year of Establishment |
Yes |
|
2] |
Locality of the firm |
Yes |
|
3] |
Constitutions of the firm |
Yes |
|
4] |
Premises details |
No |
|
5] |
Type of Business |
Yes |
|
6] |
Line of Business |
Yes |
|
7] |
Promoter's background |
Yes |
|
8] |
No. of employees |
Yes |
|
9] |
Name of person contacted |
No |
|
10] |
Designation of contact
person |
No |
|
11] |
Turnover of firm for last
three years |
Yes |
|
12] |
Profitability for last
three years |
Yes |
|
13] |
Reasons for variation
<> 20% |
-- |
|
14] |
Estimation for coming
financial year |
No |
|
15] |
Capital in the business |
Yes |
|
16] |
Details of sister
concerns |
Yes |
|
17] |
Major suppliers |
No |
|
18] |
Major customers |
No |
|
19] |
Payments terms |
No |
|
20] |
Export / Import details
(if applicable) |
No |
|
21] |
Market information |
-- |
|
22] |
Litigations that the firm
/ promoter involved in |
-- |
|
23] |
Banking Details |
Yes |
|
24] |
Banking facility details |
Yes |
|
25] |
Conduct of the banking
account |
-- |
|
26] |
Buyer visit details |
-- |
|
27] |
Financials, if provided |
Yes |
|
28] |
Incorporation details, if
applicable |
Yes |
|
29] |
Last accounts filed at
ROC |
Yes |
|
30] |
Major Shareholders, if
available |
No |
|
31] |
Date of Birth of Proprietor/Partner/Director,
if available |
Yes |
|
32] |
PAN of
Proprietor/Partner/Director, if available |
Yes |
|
33] |
Voter ID No of
Proprietor/Partner/Director, if available |
No |
|
34] |
External Agency Rating,
if available |
Yes |
UNSECURED LOANS:
|
Particular |
31.03.2013 Rs. In Millions |
31.03.2012 Rs. In Millions |
|
Long Term
Borrowings |
|
|
|
Rupee Term Loans from Banks |
0.000 |
0.000 |
|
Foreign Currency Term Loans from Banks |
45985.500 |
22373.300 |
|
Long Term Advance from a Customer |
0.000 |
1284.800 |
|
Deferred Payment
Liabilities |
|
|
|
Deferred Sales Tax Loan |
1107.700 |
1116.500 |
|
Short Term
Borrowings |
|
|
|
Foreign Currency Loan from Bank |
8429.200 |
4577.800 |
|
TOTAL
|
55522.400 |
29352.400 |
Terms of Repayment of Unsecured Term Loans:
(A)
Foreign Currency
Term Loan from Banks of :
(i)
Rs. 15229.000 Millions is repayable in 5 half yearly
installments of Rs. 3045.800 Millions each from 28.8.2015 to 27.8.2017.
(ii)
Rs. 7689.800 Millions is repayable in 17 half
yearly installments of Rs. 452.300 Millions each from 30.5.2013 to 31.3.2021.
(iii)
Rs. 4096.400 Millions is repayable as under :
-
Rs. 582.500 Millions on 30.4.2014
-
Rs. 3495.600 Millions is repayable in 12 half
yearly installments of Rs. 291.300 Millions each from 30.10.2014 to 30.4.2020
-
Rs. 18.300 Millions on 30.10.2020
(iv)
Rs. 229.800 Millions is repayable in 4 half yearly
installments of Rs. 48.600 Millions each from 3.1.2014 to 3.7.2015 and last
installment of Rs. 35.400 Millions on 3.1.2016.
(v)
Rs. 12237.600 Millions is repayable in on
26.6.2017.
(vi)
Rs. 2385.500 Millions is repayable in 3 yearly
installments of Rs. 795.200 Millions each from 26.7.2016 to 26.7.2018.
(vii)
Rs. 863.100 Millions is repayable in 16 half yearly
installments of Rs. 53.400 Millions each and final installment of Rs. 08.700
Millions falling due every 6 months after the actual commissioning date.
(viii)
Rs. 2022.800 Millions is repayable in 11 half
yearly installments of Rs. 173.300 Millions each from 19.7.2014 to 19.7.2019
and 1 half yearly installment of Rs. 116.500 Millions on 19.1.2020.
(ix)
Rs.2184.700 Millions is repayable in 14 half yearly
installments of Rs. 149.300 Millions each from 19.7.2014 to 19.1.2021 and 1
half yearly installment of Rs. 94.500 Millions on 19.7.2021.
Long Term Advance from a Customer of Rs. 1284.900
Millions is repayable as under :
-
5 monthly installments of Rs. 214.700 Millions each
from 30.4.2013 to 31.8.2013.
-
1 monthly installment of Rs. 211.400 Millions on
1.9.2013.
-
Deferred Sales tax of Rs. 1116.500 Millions is
repayable in 101 varying monthly installments starting from 30.4.2013 to
31.8.2021.
INDEX OF CHARGE:
|
Sr .No. |
Charge ID |
Date of Charge Creation/Modification |
Charge amount secured |
Charge Holder |
Address |
Service Request Number (SRN) |
|
1 |
10428403 |
03/05/2013 |
10,000,000,000.00 |
STATE BANK OF
INDIA |
CORPORATE ACCOUNTS GROUP - MUMBAI, NEVILLE HOUSE,
3RD FLOOR, J.N. HEREDIA MARG, BALLARD ESTATE, MUMBAI - 400001, MAHARASHTRA,
INDIA |
B75979476 |
|
2 |
10423803 |
12/04/2013 |
10,000,000,000.00 |
IDBI TRUSTEESHIP
SERVICES LIMITED |
ASIAN BUILDING, GROUND FLOOR, 17, R. KAMANI MARG,
BALLARD ESTATE, MUMBAI - 400001, MAHARASHTRA, INDIA |
B74391319 |
|
3 |
10362658 |
20/07/2012 * |
10,000,000,000.00 |
IDBI TRUSTEESHIP
SERVICES LIMITED |
ASIAN BUILDING, GROUND FLOOR, 17, R. KAMANI MARG,
BALLARD ESTATE, MUMBAI - 400001, MAHARASHTRA, INDIA |
B44716967 |
|
4 |
10360372 |
26/02/2013 * |
37,460,000,000.00 |
SBICAP TRUSTEE
COMPANY LIMITED |
202, MAKER TOWER, 'E', CUFFE PARADE, COLABA,
MUMBAI - 400005, MAHARASHTRA, INDIA |
B70638770 |
|
5 |
10358176 |
31/05/2012 * |
8,910,000,000.00 |
SBICAP TRUSTEE
COMPANY LIMITED |
202, MAKER TOWER, 'E', CUFFE PARADE, COLABA,
MUMBAI - 400005, MAHARASHTRA, INDIA |
B41688649 |
|
6 |
10343108 |
13/03/2012 |
37,600,000,000.00 |
SBICAP TRUSTEE COMPANY
LIMITED |
202, MAKER TOWER, 'E', CUFFE PARADE, COLABA,
MUMBAI - 400005, MAHARASHTRA, INDIA |
B35431519 |
|
7 |
10298721 |
31/05/2012 * |
52,850,000,000.00 |
SBICAP TRUSTEE
COMPANY LIMITED |
202, MAKER TOWER, 'E', CUFFE PARADE, COLABA,
MUMBAI - 400005, MAHARASHTRA, INDIA |
B41688144 |
|
8 |
10272434 |
23/12/2011 * |
9,000,000,000.00 |
IDBI TRUSTEESHIP
SERVICES LIMITED |
ASIAN BUILDING, GROUND FLOOR, 17, R. KAMANI
MARG, BALLARD ESTATE, MUMBAI - 400001, MAHARASHTRA, INDIA |
B28534402 |
|
9 |
10233825 |
30/06/2010 |
340,970,000.00 |
State Bank of
India |
15 KING STREET, EC2V 8EA, LONDON, - NA,
UNITED K INGDOM |
A91481903 |
|
10 |
10233501 |
25/06/2010 |
3,500,000,000.00 |
PUNJAB NATIONAL
BANK |
LARGE CORPORATE BRANCH, MAKER TOWER, 'E',CUFFE
PRADE, MUMBAI - 400005, MAHARASHTRA, INDIA |
A91267377 |
* Date of Charge Modification
SCHEME OF
AMALGAMATION:
The Directors in their
meeting held on September 1, 2012, have considered and approved a ‘Composite
Scheme of Arrangement and Amalgamation’ under Sections 391-394 of the Companies
Act, 1956 (the “Scheme”) amongst the Company, JSW ISPAT Steel Limited (“JSW
ISPAT”), JSW Building Systems Limited (“JSW Building”), JSW Steel Coated
Products Limited (“JSW Steel Coated”) (formerly known as Maharashtra Sponge
Iron Limited.) and their respective shareholders and creditors relating to the
following matters (to be effected in the sequence set forth herein below), with
1 July 2012 being the appointed date:
(a)
Transfer of the ‘Kalmeshwar’ undertaking of JSW
ISPAT to JSW Steel Coated (an indirect wholly owned subsidiary of the Company).
(b)
Transfer of the ‘Vasind’ and ‘Tarapur’ undertaking
of the Company to JSW Steel Coated.
(c)
Amalgamation of JSW Building (a wholly owned
subsidiary of the Company) with the Company.
(d)
Amalgamation of Residual JSW ISPAT with the
Company, pursuant to which the shareholders of JSW ISPAT will be entitled to
shares of the Company as under:
(i)
The equity shareholders of JSW ISPAT will be
entitled to 1 (One) fully paid-up equity share of face value Rs. 10/- (Rupees
Ten Only) each of the Company for every 72 (Seventy Two) fully paid up equity
shares of Rs. 10/- (Rupees Ten Only) each of JSW ISPAT held by them (“Share
Exchange Ratio”); and
(ii)
The preference shareholders of JSW ISPAT will be
entitled to 1 (One) fully paid up non-convertible cumulative redeemable
preference share of face value Rs. 10/- (Rupees Ten Only) each of the Company
for every 1 (One) fully paid up non-convertible cumulative redeemable
preference share of face value Rs. 10/- (Rupees Ten Only) each of JSW ISPAT
held by them.
following
implementation of the Scheme and the issue of shares as above, the Company’s
aggregate equity capital would stand increased from Rs. 2231.172 Millions to
Rs. 2417.220 Millions consisting of 241.722 Millions equity shares of Rs. 10
each, subject to minor changes, if any, upon rounding off of fractional
entitlements. Besides, the Company’s aggregate preference capital would stand
increased from Rs. 2790.349 Millions to Rs. 7644.495 Millions comprising of
279.034 Millions - 10% cumulative redeemable preference shares of Rs. 10/- each
and 485.414 Millions - 0.01% non-convertible cumulative redeemable preference
shares of Rs. 10/- each, subject to minor changes, if any, upon rounding off of
fractional entitlements.
The Company’s
shareholding in JSW ISPAT will stand cancelled under the Scheme. Upon allotment
of the new shares, the shareholding of JFE Steel International Europe B.V, the
affiliate of the Company’s Foreign Collaborator, JFE Steel Corporation, Japan
will stand diluted to 14.92% of the equity share capital of the Company from
16.17%.
The said Scheme
has been approved by the requisite majority of shareholders on January 30, 2013
and the Competition Commission of India (CCI) and has the No-objection of the
National Stock Exchange of India Limited and that of BSE Limited. On May 3,
2013 the Bombay High Court sanctioned the said Scheme with effect from July 1,
2012, being the appointed date. The certified copy of the Court Order is
awaited, on receipt of which the Company will initiate requisite formalities to
give effect to the Scheme. Accordingly, the accounting treatment laid out in
the Scheme and consequential adjustments that would arise will be dealt with by
the Company in the financial statements, once the Scheme is implemented.
FINANCIAL
HIGHLIGHTS:
STANDALONE
RESULTS:
The Company produced
8.52 million tonnes of crude steel in FY 2012-13, up 15% over the previous
year. Its steel sales grew to 8.87 million tonnes, increased by 14% year on
year. The Company took several initiatives during the last financial year viz;
2nd phase of Beneficiation plant, augmented in-bound and out-bound logistics
infrastructure to enhance flexibility in utilization of inputs and dispatch of
finished products, commissioning of 4th Stove of BF 3 and enhanced product
portfolio by completing 2nd phase of HSM II, increased capacities of Colour
coated products at Vasind and Tarapur Works and also achieved increased sales
volumes through its retail outlets ‘JSW Shoppe’. These initiatives helped in
achieving impressive growth of volume production and sales.
The Gross Turnover
and Net Turnover for the year was Rs. 387630.000 Millions and Rs. 353880.000
Millions respectively, showed a growth of 12% and 10% respectively. The
Operating EBITDA was Rs. 63090.000 Millions, showed a growth of 12% with an
improvement in EBIDTA margins to 17.8%. The net profit after tax was Rs.
18010.000 Millions showing a growth of 11%, after considering exceptional loss
of Rs. 3670.000 Millions, due to the significant movement and volatility in the
value of the rupee against US dollar. The net worth of the Company increased to
Rs. 199370.000 Millions as on March 31, 2013, from Rs. 184970.000 Millions as
on March 31, 2012. The Company’s net debt gearing was at 0.82 (compared to
0.69, as on March 31, 2012) and net debt to EBIDTA was at 2.59 (compared to
2.27, as on March 31, 2012).
PROSPECTS:
Indian economy
witnessed one of its most challenging times during FY’13 with high inflation,
elevated interest rates, low industrial production, depreciating Indian Rupee
which adversely affected its external trade resulting in skewed trade and
fiscal deficits and subdued economic growth estimated at 5%. Country’s under
performance was partly due to the muted and uneven Global economic recovery in
2012 with World GDP slowing down to 3.2%.
Outlook for Global
economy is expected to progressively improve with more accommodative monetary
policies, improving fiscal stability and assuming absence of any adverse events
resulting in a gradual restoration of confidence during 2013 through 2014. In
accordance, IMF has projected World GDP to grow at 3.3% during 2013 and
increasing to 4% in 2014. Positive influence of Global economy coupled with
gaining prospects for proactive Reformatory Policy measures is expected to help
Indian economy recover with an estimated growth of 6-6.5% during FY’14. Current
account deficit is expected to witness a further reduction under a modest
recovery of exports, improved inflows and remittances assuming stability in Oil
/ Gold import basket.
Global Steel
sector witnessed a destocking during C.Y. 2012 influenced by growing economic
uncertainties coupled with a soft lending for Chinese economy – resulting in a
marginal growth of 1.2% each for Global steel production as well as demand.
During FY’13, Indian crude steel capacity increased by production increased by
5.4% to 78 million tonnes while domestic demand saw a growth of 3.3% to 73
million tonne. The demand was majorly affected by underperforming investment
growing @ 1.7%, depressed industrial growth at 1%, decelerating auto production
growing at 2% and Rupee witnessing a sharp depreciation of 14% putting further
pressure on margins.
World steel demand
is projected to witness an increment of 41 million tonnes moderately up by 2.9%
to 1454 million tonnes in C.Y. 2013 with China expected to grow by 3.5% to 669
million tonnes – contributing 46% to World steel demand. However, the large
“Effective Surplus” capacity of approximately 350 million tonne coupled with
almost stagnant domestic demand projected for major exporting economies including
Japan, Korea, Russia and Ukraine remains a major challenge for a sustainable
growth of Global steel industry.
In expectation of
a normal monsoon, the growing income of farm sector is expected to translate
into rising consumption. Further, accelerated approach to reformatory policy
initiatives with reducing subsidies, expanding FDI limits in Multiple-brand
retail, Insurance, Banking etc., proactive role of Cabinet Committee for
Investment for timely clearances of projects coupled with improving industrial
production and growing focus on Infrastructure development is expected to
witness a more sustainable economic development and growth with a moderate
inflation and declining deficits. At the back of a modest economic recovery
Indian Steel industry remains optimistically cautious with demand expected to
complement the country’s economic performance in FY’14. However, surging
imports at incentivized duty rates under the Free Trade Agreements with Korea
and Japan coupled with depreciating Indian Rupee remain major challenges for
the Indian steel industry.
PROJECTS AND
EXPANSION PLANS:
PROJECTS
COMMISSIONED DURING FY 2012-13:
VIJAYANAGAR WORKS:
- Revamped Corex 2
with added feature of Aerial Gas Distribution system (AGD) to increase its capacity
from 0.80 MTPA to 0.85 MTPA.
- Enhanced the hot
metal capacity in Blast Furnace II from current 1.3 MTPA to 1.4 MTPA by
distributing feed burden better and replacing top charging system with improved
design.
- Enhanced
capacity of HSM II by 1.5 MTPA from 3.5 MTPA to 5 MTPA.
- Completed second
phase of Beneficiation Plant, taking the capacity to 20 MTPA.
- Commenced dry
quenching of coke from the CDQ project commissioned by JSW Projects Limited.
- Commissioned 60
tonnes per hour (tph) Blast Furnace gas-fired boiler to minimize flaring of
gases from furnaces.
SALEM WORKS:
- Commissioned 75
tph coke drying unit to reduce coke moisture, leading to substantial savings.
VASIND/TARAPUR
WORKS:
- Enhanced capacity
of colour coating line at Tarapur from 0.232 MTPA to 0.276 MTPA.
- Commissioned
state-of-the-art new colour coating line with capacity of 0.15 MTPA at Vasind.
- Commissioned a
new 300 KL per day capacity effluent treatment plant.
The benefits on
commissioning these projects during FY 2012-13 are expected to accrue during FY
2013-14.
PROJECTS UNDER
IMPLEMENTATION:
1) CAPACITY ENHANCEMENT PROJECTS
Vijayanagar Works
a) Revamping and
enhancing capacity of Corex-1 from 0.80 MTPA to 0.85 MTPA.
b) Augmenting
casting capacity at steel melting shop No. 1 by adding 1,600 mm wide caster.
c) Augmenting
secondary steel melting capacity by adding one ladle heating furnace.
d) Installing
Nodulizer for better granulometry of low-grade iron ore in Sinter Plant No. 1,
2 and 3.
e) Increasing the
capacity of Blast Furnace-I from 0.9 MTPA to 1.8 MTPA.
f) Expected
commissioning 0.2 MTPA non-grain oriented electrical steel project in FY
2014-15.
Salem Works
a) Installation of
Kocks block for reducing and sizing block capacity and quality of bar and rod
mill.
b) Automatic
inspection line for Blooming Mill, de-bundling, de-barring and second
straightener.
Vasind/Tarapur Works
a) Appliance grade
Colour Coating Line with a capacity of 0.075 MTPA at Vasind
b) New Galvanising
Line with dual pot of Galvalume cum Galvanising line with capacity of 0.2 MTPA
at Tarapur.
c) Upgradation of
Cold Rolling Mill TM – I and II at Tarapur.
2) EFFICIENCY, PRODUCTIVITY IMPROVEMENT AND COST
REDUCTION INITIATIVES
VIJAYNAGAR WORKS
a) Installed waste
heat recovery system at Sinter Plant 2, 3 and 4.
b) Installed waste
heat recovery system at Blast Furnace 4.
c) Utilized
surplus gases within the plant to generate power and to achieve zero flaring of
gases.
d) Used BOF sludge
and fine dust fumes for micro pellet plant.
e) Used mill scale
generated from various mills for mill scale briquetting.
f) Installed
burner system in existing CPP 3 and 4 boiler for increasing the utilization of
waste gas.
SALEM WORKS
a) Installed 32
tph waste heat recovery boiler.
b) Commissioned
new wagon tippler to reduce demurrage and handling loss.
VASIND/TARAPUR WORKS
a) Converted LPG
heating system to natural gas system.
b) Commissioned railway siding at Vasind
3) OTHER PROJECTS
VIJAYANAGAR WORKS
CRM II 1st phase,
comprising 2.30 MTPA of pickling line, and Tandem Cold rolling Mill (PLTCM),
Continuous Annealing Line (CAL) of 0.95 MTPA and Continuous Galvanizing Line
(CGL) of 0.4 MTPA, is scheduled to be commissioned in the third quarter of
2013. Moreover, in Phase II, the second CAL line is expected to be commissioned
by December 31, 2014. The Company is also setting up a new melting shop with
1.5 MTPA capacity, comprising Electric Arc Furnace with a 1.5 MTPA billet
caster. This new melting shop, along with a new Bar Mill with a capacity of 1.2
MTPA, is scheduled to be commissioned in FY 2014- 15. This project will enable
the Company to produce 10 MTPA finished steel at Vijayanagar works.
MANAGEMENT DISCUSSION AND ANALYSIS
GLOBAL ECONOMY
· The world witnessed a major economic slowdown in 2012 due to the uncertainties of fiscal imbalance in the AME’s coupled with reduced trade and investments.
· Signs of improvement in USA on account of falling unemployment, growing savings and investments.
· The Chinese economy witnessed a gradual cooling of investments and industrial growth which were substituted by increasing consumer spending.
· Frequent Government stimulus and the depreciating yen along with the fiscal consolidation in the EU are positive signs for the global economy.
· Lower commodity prices, falling inflation and abundant liquidity are favourable for the EMEs.
· Global trade volumes are projected to increase from 2.5% in 2012 to 3.6% in 2013.
· Global GDP recovery is projected at 3.3% in 2013 as against 3.2% in 2012.
· Long term challenges – Fiscal Balancing for AME’s coupled with improved monetary measures in part of EMEs.
The global economy
continues to face significant uncertainties. Anaemic rates of economic growth in
the developed world, coupled with slowdown in developing countries, pose
challenges to both policymakers and companies. Data from the International
Monetary Fund (IMF) shows that global GDP expanded at 3.2% in 2012, with
average growth rates of 1.3% and 5.1% in advanced and developing economies,
respectively. Global inflation was 3.9% in 2012 [Source: The World Bank].
In 2012, European
countries, such as France, Italy Portugal, Ireland, Greece and Spain, remained
afflicted with high levels of public debt and rising youth unemployment.
Political uncertainty surrounding the implementation of austerity measures,
such as debt restructuring and budgetary tightening, was opposed severely by
the citizens of these countries. Across the Atlantic, the US witnessed slow
economic recovery and a gradual creation of more private sector jobs. Japan
witnessed economic contraction for two consecutive quarters. The nation
recovered gradually from the devastating tsunami in the previous year, which
disrupted manufacturing supply-chains. However, the rising yen, a diplomatic
row with China and subdued global demand affected exports, which are crucial
for the nation’s economic stability.
Major developing countries, the beacons of rising prosperity over the
past few years, slowed down as well. Economic growth in China, India, Brazil
and South Korea decelerated due to a combination of domestic policies, which
hampered capital formation, and sluggish export demand. Despite the slowdown,
emerging markets expanded at a rate significantly higher than the developed
countries. This showed that the shift of economic power to emerging markets is
well and truly underway.
INDIAN ECONOMY
· High inflation in addition to the global economic slowdown were the major factors resulting in the monetary and fiscal imbalance adversely impacting economic growth in FY 2012-13 estimated at 5%.
· Capital accumulated in projects as past investment has failed to yield commensurate output depressing economic growth.
· Declining inflation combined with improving liquidity and reducing benchmark rates are expected to gradually improve domestic economic activities providing impetus to industrial production, investments and consumer expenditure.
· The Prime Minister’s Economic Advisory Council has projected the GDP to grow at 6.4% during FY 2013-14. Fiscal deficit is expected to be maintained at 4.8%, Current Account Deficit (CAD) at 4.7% and inflation at 6%.
· Reformative measures in the form of reducing fuel subsidies with Direct Cash Transfer of subsidies, FDI in retail and growing rural income through MGNREGA will also aid economic growth.
· An improved monsoon with growing rural income could provide the necessary support to improve economic prospects.
Headwinds in
developed nations and domestic supply bottlenecks affected India’s economic
growth in FY 2012-13. Moreover, RBI’s monetary tightening, especially the
successive hikes in repo rate, increased the cost of capital and lowered
business investment. As a result, the Indian economic output growth was estimated
at 5% in FY 2012-13, compared to 6.2% in the previous fiscal year.
OUTLOOK
GLOBAL ECONOMY
The global economic outlook continues to be weak with tight liquidity, contracting demand, declining trade and reducing investments. World witness bold and challenging fiscal measures in terms of monetary easing and stimulus measures to secure and stimulate economic recovery.
International Monetary Fund projects a modest economic recovery in 2013 with world GDP expected to grow at 3.3%, an increase from 3.2% in 2012. The US economy is expected to adopt a more moderate fiscal consolidation than envisaged and is projected to sustain its GDP growth at 1.9% in 2013 as against 2.2% estimated for 2012. European economic growth is projected to continue to contract by 0.3% in 2013 after witnessing an estimated economic deceleration of 0.6% in 2012. Japan is expected to overcome its recession stimulated by monetary-easing with GDP growth for 2013 projected with a downside risk at 1.6% visà-vis 2% estimated for 2012.
China’s economic growth softened in 2012 with GDP growth at 7.8%, impacted by the slowing down of Investment, industrial growth and exports on one hand and domestic consumption growing only moderately, on the other Nonetheless, China continues to remain the major global economic engine and is slated to retain economic growth momentum, projected to grow at 8.0% in 2013. Global steel outlook – growth amidst uncertainties Global steel demand is expected to witness a moderate improvement vis-à-vis 2012 led by low inventory levels duly supported by improving economic performance across geographies. Raw material prices are slated to remain less volatile as compared to FY 2012-13. In view of the above, the World Steel Association has projected a global steel demand growth at 2.9% with China at 3.5% for CY 2013.
However, the world is reeling under the pressure of large surplus capacity which will remain a serious cause of concern, especially in times of subdued global demand.
INDIAN ECONOMY
The Indian economy is expected to witness a moderate recovery in the medium term on account of ongoing reformatory measures, fiscal consolidation, improved prospects of liquidity which are envisaged to improve industrial and manufacturing growth duly supported by reducing inflation.
In accordance, economic growth is projected to increase by around 6.4% in FY 2013-14 as per the projection given by the Prime Minister’s Economic Advisory Council while the Hon’ble Finance Minister has projected the same at 6.1% to 6.7% in the Union Budget speech for FY 2013-14.
INDIAN STEEL OUTLOOK
Indian steel demand is expected to boost by Infrastructure & Construction development, sustained by industrial, manufacturing and capital goods and be stimulated by the automotive and consumer durable sectors. The USD 1 trillion investment in to infrastructure and construction planned during the 12th Five Year will drive demand. Direct demand for infrastructure and construction is pegged at approximately 40 MnT with per capita steel demand projected to increase from 60 kg in FY 2012-13 to 88 kg by FY 2016-17. The Indian Steel Industry is expected to achieve a growth of 5.9% during FY 2013-14 as per the projection given by World Steel Association.
CONTINGENT
LIABILITIES NOT PROVIDED FOR IN RESPECT OF (AS ON 31.03.2013):
a) Bills Discounted Rs. 30129.200 Millions (Previous year Rs. 31171.300 Millions).
b) Guarantees provided to banks on behalf of subsidiaries Rs. 12239.500 Millions (Previous year Rs. 10962.700 Millions).
c) Disputed claims/levies (excluding interest, if any), in respect of:
(i) Excise Duty Rs. 1998.200 Millions (Previous year Rs. 2002.700 Millions);
(ii) Custom Duty Rs. 6327.600 Millions (Previous year Rs. 4774.400 Millions);
(iii) Income Tax Rs. 14.700 Millions (Previous year Rs. 14.700 Millions);
(iv) Sales Tax / Special Entry tax Rs. 2269.300 Millions(Previous year Rs. 1703.000 Millions);
(v) Service Tax Rs. 981.000 Millions (Previous year Rs. 700.800 Millions);
(vi) Miscellaneous Rs. 0.500 Millions (Previous year Rs. 0.500 Millions);
(vii) Levies by local authorities Rs. 30.400 Millions (Previous year Rs. 30.400 Millions); and
(viii) Claims etc. by suppliers and other parties (including for Forest Development Tax) Rs. 8727.900 Millions(Previous year Rs. 5090.000 Millions)
In 2008, the State of Karnataka levied a Forest Development Tax (FDT) treating iron ore as a forest produce. Writ
Petitions challenging the levy of FDT filed before Karnataka High Court by various stakeholders are pending
for disposal. Accordingly, the Company has disclosed in the financial statements FDT paid under protest of Rs.
6507.500 Millions (including under e auction) as an advance and Rs. 8660.300 Millions(above) as a contingent liability.
FIXED ASSETS:
Tangible Assets
· Freehold Land
· Leasehold Land
· Building
· Plant and Machinery
· Furniture And Fixtures
· Vehicles and Aircrafts
Intangible Assets
· Software
PRESS RELEASE
JSW STEEL TO HIKE PRICE BY 4-6% AS COAL GETS COSTLIER
Following a steep hike in raw material cost, (especially coal) JSW Steel has decided to raise steel price by 4-6 percent from September 1, reports CNBC-TV18. Imported coal price has moved up over 8 percent to USD 136/tonne and since the rupee depreciated around 9 percent during the June quarter, the firm reported forex loss of Rs 850 crore.
Meanwhile, brokerages don’t seem bullish on steel sector, as not only rupee, but weak demand from infrastructure segment will continue to haunt steel makers throughout FY14.
For instance, a recent report by Bank of America Merill Lynch stated that amid bleak economic environment, domestic steel outlook remains weak with lesser possibility of turnaround in the current financial year. The firm also pointed out that many delayed steel projects are likely to be commissioned during the year leading to overcapacity.
Ernst and Young had in its June report said that global steel demand is unlikely to improve significantly in 2013 and sluggish demand combined with factors such as excess steelmaking capacity will challenge the sustainability of high-cost manufacturers.
India Ratings and Research has revised its outlook on Indian steel producers to ‘negative’ from ‘stable’ for H2FY13. “The negative outlook is in view of the higher-than-expected deterioration in the financial and liquidity profiles of rated issuers. The continuous weak macro-economic environment in India has resulted in muted demand for steel products from the end-user industries,” the credit rating agency said.
Steel makers are going through rough whether as is evident from the 13-share metals index falling over 30 percent year-to-date, compared to only 3 percent fall in Sensex
NEW STEEL IMPORT NORMS TO DENT CAPACITY USAGE: EXPERTS
The recent government notification to ease steel import norms will not only increase inward shipment of the metal, but also add to woes of domestic firms battling demand slowdown, industry experts said today. The industry called for an review of the decision, saying the quality of domestic steel is of global standards.
"The government's latest move will further increase import of steel, resulting in idling of local production capacity, further adding to the woes of ballooning current account deficit," JSW Steel Joint MD, and Group Chief Financial Officer Seshagiri Rao told PTI in an email.
"The long-term implication is dangerous, as the domestic industry is facing demand slowdown and domestic surplus will further go up," he added. In its August 7 order, the government had exempted steel and steel products imported for mega industrial projects with investment over Rs 10000.000 Millions from the quality control regulation known as the 'Steel and steel products (quality control) second order of 2012'.
The government's move has caused consternation within domestic steel companies about import of a lot of inferior quality steel products into the country. "The main worry is that apart from plates, a lot of plain-vanilla low-grade structural steel like rebars and TMT bars will also get into the country. It will strike at the very heart of our steel industry where currently a lot of idle capacity exists. The industry needs a curb on imports to stop dumping," Rao added.
Essar Steel India Chief Commercial Officer H Shivramkrishnan said, "The steel industry is already hit from all sides, including high input cost, cheap FTA imports, proposed reduction in export duty on iron ore and the weakening domestic demand.
"The new rule has the potential to jeopardise the domestic steel industry due to threat of cheap imports from countries like Ukraine and China and would add to the woes of the already struggling industry besides adding to the high CAD". He also termed the government move as surprising and retrograde.
JSW, JFE SIGN AGREEMENT TO PRODUCE ELECTRICAL STEEL
JSW Steel today said it has inked an agreement with JFE Steel Corporation of Japan to produce electrical steel sheets used mainly in the power sector. The two companies already have an alliance for making steel meant for the auto sector.
JFE Steel Holdings, the parent company of JFE Steel Corporation, has 15 per cent stake in Sajjan Jindal-led JSW Steel, as on September-end 2012. "...a joint agreement (has been) signed where JFE will provide technology for production of non-oriented electrical steel sheets (CRNGO) at the JSW's Vijayanagar plant in Karnataka," the domestic steel maker said in a statement.
However, JSW Steel did not give details of the terms of the agreement. "By leveraging JFE Steel's well-established manufacturing technology for electrical steel, shall produce CRNGO grade electrical steel and supply to its customers, including local companies as well as Japanese, European and US-affiliated companies doing business in India," JSW Steel said.
India does not have the technology to produce electrical steel sheet products and entirely depend on imports, which according to an industry source, could be valued at around Rs 130000.000 Millionse each year. "JSW Steel plans to start up its new annealing and coating line for electrical steel sheets in latter half of 2014. The initial annual output is projected to be 200,000 tonnes, which will be increased to 0.6 million tonnes per year in phases," it said.
The company would also take sight on the production of Cold Rolled Grain Oriented (CRGO) grade in future, the release said, adding the company envisages becoming the largest electrical steel producer in the country. Shares of JSW Steel were last trading at Rs 766.9 apiece, up 2.95 per cent on the BSE.
CCI gives
approval to proposed JSW Steel-JSW Ispat merger
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No exist to suggest that subject is or was
the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent
government authority for any violation of anti-corruption laws or international
anti-money laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs. 61.93 |
|
|
1 |
Rs. 100.44 |
|
Euro |
1 |
Rs. 84.24 |
INFORMATION DETAILS
|
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 |
-- |