MIRA INFORM REPORT
|
Report Date : |
25.06.2014 |
IDENTIFICATION DETAILS
|
Name : |
JSW ENERGY LIMITED |
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Registered
Office : |
JSW Centre, Bandra Kurla Complex, Bandra (East), Mumbai – 400051, Maharashtra |
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Country : |
India |
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Financials (as
on) : |
31.03.2013 |
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Date of
Incorporation : |
10.03.1994 |
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Com. Reg. No.: |
11- 077041 |
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Capital
Investment / Paid-up Capital : |
Rs.16400.500
Millions |
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CIN No.: [Company Identification
No.] |
L74999MH1994PLC077041 |
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|
Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchanges. |
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Line of Business
: |
Subject is primarily engaged in the business of generation of power, operation
and maintenance of power plants and trading in power. |
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No. of Employees
: |
1177 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
A (63) |
|
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 270000000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Exist |
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Comments : |
Subject is a part of the JSW Group headed by Mr. Sajjan Jindal. It is a
well established company having fine track record. There appear a better increase in the sales turnover as well as the
net profitability of the company during 2013. Financial and liquidity
position seems to be sound and healthy. The rating take into consideration, the volatility in the prices of
coal and foreign exchange rates which may affect the profitability. However, trade relations are fair. Business is active. Payment terms
are reported as regular and as per commitments. In view of long standing experience of the promoters, the company can
be considered good for business dealings at usual trade terms and conditions.
|
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – March 31, 2014
|
Country Name |
Previous Rating (31.12.2013) |
Current Rating (31.03.2014) |
|
India |
A1 |
A1 |
|
Risk Category |
ECGC Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
INDIAN ECONOMIC OVERVIEW
N E W S
The economy grew 4.7 %in 2013/14, marking a second
straight year of sub-5 % growth – the worst slowdown in more than a quarter of
a century. The data was below an official estimate of 4.9 % annual growth and
compared with 4.5 % in the last fiscal year. However, the current account
deficit narrowed sharply to $ 32.4 billion at 1.7 % of gross domestic product,
in 2013/14 from a record high of $ 98.8 billion or 4.7 %, the year before.A
sharp fall in gold imports due to restrictions on overseas purchases and muted
import of capital goods helped shrink the current account deficit.
Online retailer Flipkart has acquired fashion
portal Myntra as it prepares to battle with the rapidly expanding India arm of
the global e-commerce giant Amazon. The company raised $ 210 million from Russian
Investment firm DST Global which has also invested in companies like Facebook,
Twitter and Alibaba Group.
General Motors will start exporting vehicles
from its Talegaon plant near Pune in the second half of 2014. GM was one of the
few global carmakers that was using its India plant only for the domestic
market.
Google has overtaken Apple as the world’s top
brand in terms of value, according to global market research agency Millward
Brown. Google’s brand value shot up 40 % in a year to $ 158.84 billion. The top
10 of the 100 slots were dominated by US companies.
Infosys lost another heavy weight when B G
Srinivas, a board member put in his papers. He is the third CEO-hopeful to quit
after Chairman N R Narayana Murthy’s return to the company – Ashok Vemuri and V
Balakrishnan being the other two.While Vemuri went on to lead IGate,
Balakrishnan joined politics.
Naresh Goyal – promoted Jet Airways posted
biggest quarterly loss – Rs 2153.37 crore – in the three months ended March 31,
mainly because it has been offering discounts to passengers to fill planes.
William S Pinckney – Chairman and CEO of
Amway India was arrested by the Andhra Pradesh Police in connection with a
complaint against the direct selling firm. This is the second time that he has
been taken into custody. A year, ago the Kerala Police had arrested Pinckney
and two company directors on charges of financial irregularities.
China has told its state-owned enterprises to
sever links with American consulting firms after the United States charged five
Chinese military officers wih hacking US companies. China’s action which
targets consultancies like McKinsey & Co. and the Boston Consulting Group,
sterns from fears that the first are providing trade secrets to the US
governments.
India has emerged as a country with some of
the highest unregistered businesses in the world. Indonesia has the maximum
number of shadow businesses, says a study of 68 countries by Imperial College
Business School in London.
Pfizer has abandoned its attempt to buy AstraZeneca
for nearly $ 118 billion after the latter refused an offer of 55 pounds a
share.
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CARE |
|
Rating |
Long Term Bank Facilities : “AA-” |
|
Rating Explanation |
High degree of safety and very low credit risk. |
|
Date |
07.10.2013 |
|
Rating Agency Name |
CARE |
|
Rating |
Short Term Bank Facilities : “A1+” |
|
Rating Explanation |
Very strong degree of safety and lowest credit risk. |
|
Date |
07.10.2013 |
RBI DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available RBI Defaulters’ list.
EPF (EMPLOYEE PROVIDENT FUND) DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter in
the publicly available EPF (Employee Provident Fund) Defaulters’ list as of
31-03-2012.
INFORMATION DECLINED
MANAGEMENT NON-COOPERATIVE (91-22-42861000)
LOCATIONS
|
Registered Office/ Corporate Office : |
JSW Centre, Bandra Kurla Complex, Bandra (East), Mumbai –
400051, Maharashtra, India |
|
Tel. No.: |
91-22-42861000 |
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Fax No.: |
91-22-42863000 |
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E-Mail : |
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Website : |
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Corporate/ Branch Office : |
The Enclave, Behind Marathe Udyog Bhavan, New Prabhadevi Road, Prabhadevi, Mumbai – 400025, Maharashtra, India |
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Tel. No.: |
91-22-67838000/ 23513000 |
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Fax No.: |
91-22-24320740 |
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Location : |
Owned |
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Vijayanagar Plant : |
SBU I and SBU II Post Box No. 9, Toranagallu, District |
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Tel. No.: |
91-8395-252124 |
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Fax No.: |
91-8395-250757 |
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Location : |
Owned |
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Ratnagiri Plant : |
Village Nandiwade, Post Jaigad, Taluka and District Ratnagiri – 415614, Maharashtra, India |
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Tel. No.: |
91-2357-242501 |
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Fax No.: |
91-2357-242508 |
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Location : |
Owned |
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|
|
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Hydro Project : |
Kutehr Hydroelectric Project, Village and PO Garola, Tehsil Bharmour, District Chamba – 176309, Himachal Pradesh, India |
DIRECTORS
As on: 31.03.2013
|
Name : |
Mr. Sajjan Jindal |
|
Designation : |
Chairman and Managing Director (till 31.12.2013) |
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Date of Birth/ Age : |
05.12.1959 |
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Qualification : |
Bachelor’s Degree in Mechanical Engineering |
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|
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|
Name : |
Mr. Nirmal Kumar Jain |
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Designation : |
Vice-Chairman and Whole time Director (till 20.01.2015) |
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Date of Birth/ Age : |
03.05.1946 |
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Qualification : |
B.Com., FCA, FCS |
|
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|
Name : |
Mr. Sanjay Sagar |
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Designation : |
Joint Managing Director and CEO |
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Name : |
Mr. Pramod Menon |
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Designation : |
Director – Finance |
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|
Name : |
Mr. B. Ravindranath |
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Designation : |
Nominee Director of IDBI Bank Limited |
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|
|
|
Name : |
Mr. P. Abraham, IAS (Retired) |
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Designation : |
Director |
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Date of Birth/ Age : |
01.07.1939 |
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Qualification : |
Masters degree in Arts and Diploma in System Management and an IAS |
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|
|
|
Name : |
Mr. D.J. Balaji Rao |
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Designation : |
Director |
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Date of Birth/ Age : |
15.12.1939 |
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Qualification : |
Bachelor’s degree in Mechanical Engineering and Post Graduate Diploma in Industrial Engineering |
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|
|
|
Name : |
Mr. Chandan Bhattacharya |
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Designation : |
Director |
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Date of Birth/ Age : |
13.01.1945 |
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Qualification : |
B.A (Honours) and CAIIB |
KEY EXECUTIVES
|
Name : |
Mr. Sampath Madhavan |
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Designation : |
Company Secretary |
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SENIOR MANAGEMENT TEAM |
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Name : |
Mr. Satish Jindal |
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Designation : |
Chief Operating Officer (Power Trading) |
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Name : |
Mr. Navraj Singh |
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Designation : |
Senior Vice President |
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Name : |
Mr. Kamal Kant |
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Designation : |
Senior Vice President |
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Name : |
Mr. Chhavi Nath Singh |
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Designation : |
Senior Vice President |
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Name : |
Mr. Vijay Paranjape |
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Designation : |
Senior Vice President |
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|
Name : |
Mr. Vinayak Bhat |
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Designation : |
Vice President |
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|
Name : |
Mr. Vijay Sinha |
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Designation : |
Vice President |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 31.03.2014
|
Category of
Shareholder |
No.
of Shares |
%
of No. of Shares |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
452715581 |
27.60 |
|
|
777324323 |
47.40 |
|
|
1230039904 |
75.00 |
|
|
|
|
|
|
740 |
0.00 |
|
|
740 |
0.00 |
|
Total shareholding of Promoter and Promoter Group (A) |
1230040644 |
75.00 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
10525893 |
0.64 |
|
|
94498953 |
5.76 |
|
|
68119327 |
4.15 |
|
|
173144173 |
10.56 |
|
|
|
|
|
|
27775978 |
1.69 |
|
|
|
|
|
|
47352667 |
2.89 |
|
|
47851881 |
2.92 |
|
|
113889452 |
6.94 |
|
|
8700 |
0.00 |
|
|
2641962 |
0.16 |
|
|
500 |
0.00 |
|
|
3040243 |
0.19 |
|
|
108198047 |
6.60 |
|
|
236869978 |
14.44 |
|
Total Public shareholding (B) |
410014151 |
25.00 |
|
Total (A)+(B) |
1640054795 |
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) |
1640054795 |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Subject is primarily engaged in the business of generation of power, operation
and maintenance of power plants and trading in power. |
GENERAL INFORMATION
|
No. of Employees : |
1177 (Approximately) |
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Bankers : |
· IDBI Bank Limited · ICICI Bank Limited · Punjab National Bank · State Bank of India · Vijaya Bank · Canara Bank |
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Facilities : |
(Rs.
In Millions)
Terms of Redemption
of Debentures : a) 12,000 nos. @ 9.75% Secured Redeemable Non-Convertible Debentures of Rs. 10 lakhs each redeemable at par in 10 half yearly equal installments commencing from 20th January / 30th January / 16th February, 2016 till 20th July / 30th July / 16th August, 2020. b) Coupon Rates ranging from 9.05% to 9.75% Secured Redeemable Non-Convertible Debentures of 22,800 nos of Rs. 10 lakhs each having tranches of Rs. 1200.000 Millions each aggregating to Rs. 22800.000 Millions. Each of the tranches are redeemable at par at different intervals from 30th September, 2013 and ending at 1st November, 2022. Term of Repayment
of Rupee Terms Loans: (Rs.
In Millions)
Details of Security a) Debentures aggregating to Rs. 12000.000 Millions (Previous Year Rs. 12000.000 Millions), mentioned in 1 (a) are secured on a pari passu basis by (a) a first ranking charge by way of legal mortgage on the freehold land situated at Mouje Maharajpura, Taluka Kadi, District Mehsana, in the state of Gujarat (b) a first ranking charge by way of legal mortgage of immovable assets of the Company’s SBU I and SBU II situated in the State of Karnataka (c) a first ranking charge by way of hypothecation of moveable fixed assets of the Company’s SBU I and SBU II. b) Debentures aggregating to Rs. 22800.000 Millions (Previous Year Rs. 24000.000 Millions), mentioned in 1 (b) are secured on a pari passu basis by (a) a first ranking charge by way of legal mortgage on the freehold land situated at Mouje Maharajpura, Taluka Kadi, District Mehsana, in the state of Gujarat (b) secured on a pari passu basis by a first ranking charge by way of mortgage on fixed assets of the Company’s SBU III (4 x 300 MW Power Plant situated at Dist. Ratnagiri, in the State of Maharashtra). c) Rupee Term Loan aggregating to Rs. 2157.700 Millions (Previous Year Rs. 2739.700 Millions) included in 2 (a) and (b) are secured on a pari passu basis by (a) a first ranking charge by way of equitable mortgage of immovable assets of the Company’s SBU I and SBU II situated in the State of Karnataka (b) a first ranking charge by way of hypothecation of moveable fixed assets of the Company’s SBU I and SBU II unit situated in the State of Karnataka (c) a second ranking charge by way of hypothecation on the current assets of Company’s SBU I and SBU II including stock and receivables (both present and future). d) Rupee Term Loan aggregating to Rs. 1450.300 Millions (Previous Year Rs. 1825.400 Millions) included in 2 (a) is secured on a pari passu basis by (a) a first ranking legal mortgage of immovable property of the Company’s SBU II situated in the state of Maharashtra (b) a first ranking charge by way of equitable mortgage of immovable assets of the Company’s SBU I and SBU II situated in the State of Karnataka (c) a first ranking charge by way of hypothecation of moveable fixed assets of the Company’s SBU I and II (d) a second ranking charge by way of hypothecation on the current assets of Company’s SBU I and SBU II including stock and receivables (both present and future). e) Rupee Term Loan included in 2 (a) amounting to Rs. 1966.700 Millions (Previous Year Rs. 1930.600 Millions) is secured by first ranking charge on the Company’s share (i.e. 50%) in the property being developed at Village Kole Kalyan, Taluka South Salsette, District of Mumbai Suburban, in the State of Maharashtra. f) Rupee term loan included in 2 (a) and (b) aggregating to Rs. 12523.500 Millions (Previous Year Rs. 11150.000 Millions) are secured on a pari passu basis by (a) first ranking charge by way of legal mortgage on the Company’s SBU III (4x300 MW) immovable property both present and future situated in Ratnagiri and Mumbai (b) a first ranking charge by way of Hypothecation of moveable assets both present and future of Company’s SBU III situated in Ratnagiri, in the State of Maharashtra (c) second ranking charge on current assets of the Company’s SBU III for rupee term loan included in 2 (a) aggregating of Rs. 11492.100 Millions (Previous Year Rs. 9993.600 Millions). Details of
Security: i) Working Capital Loans pertaining to the Company’s SBU
II are secured on a pari passu basis by (a) a second ranking charge by way of
equitable mortgage of immovable assets of the SBU II situated in the State of
Karnataka (b) a second ranking charge by way of hypothecation of movable
fixed asssets of the SBU II (c) a first ranking charge by way of
hypothecation on the current assets of SBU II including stock and receivables
(both present and future). |
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Banking Relations
: |
-- |
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Auditors : |
|
|
Name : |
Lodha and Company Chartered Accountants |
|
Address : |
Mumbai, Maharashtra, India |
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E-Mail : |
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Subsidiaries : |
· JSW Power Trading Company Limited · Raj WestPower Limited · Jaigad PowerTransco Limited · JSW Energy (Raigarh) Limited · JSW Green Energy Limited · JSW Energy (Kutehr) Limited (w.e.f. 20th February, 2013) · PT. Param Utama Jaya · JSW Energy Natural Resources (BVI) Limited · JSW Energy Minerals Mauritius Limited · JSW Energy Natural Resources Mauritius Limited · JSW Energy Natural Resources South Africa (Pty) Limited · South Africa Coal Mining Holdings Limited · Royal Bafokeng Capital (Pty) Limited · Ilanga Coal Mines Proprietary Limited · Jigmining Operations No.1 Proprietary Limited · Jigmining Operations No.3 Proprietary Limited · Mainsail Trading 55 (Pty) Limited · Sacm (Breyten) Proprietary Limited · Sacm (Newcastle) Proprietary Limited · South African Coal Mining Equipment Company Proprietary Limited · Umlabu Colliery Proprietary Limited · Voorslag Coal Handling Proprietary Limited · Yomhlaba Coal Proprietary Limited · South African Coal Mining Operations Proprietary Limited |
|
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|
Other Related
Parties : |
· JSW Steel Limited · JSoft Solutions Limited · Toshiba JSW Turbine and Generator Private Limited · JSW Cement Limited · Gagan Trading Company Limited · JSW Realty and Infrastructure Private Limited · JSW Techno Projects Management Limited · Barmer Lignite Mining Company Limited · JSW Jaigarh Port Limited · JSW Infrastructure Limited · Jindal Steel and Power Limited · JSW Ispat Steel Limited · JSW Energy (Bengal) Limited (Related party w.e.f. 5th March, 2012) · O.P. Jindal Foundation · JSW Foundation · JSW Green Private Limited · South West Mining Limited · JSL Lifestyle Limited · MJSJ Coal Limited · JSW Bengal Steel Limited |
CAPITAL STRUCTURE
As on 31.03.2013
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
5,000,000,000 |
Equity Shares |
Rs.10/- each |
Rs. 50000.000 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
1,640,054,795 |
Equity Shares |
Rs.10/- each |
Rs.
16400.500 Millions |
|
|
|
|
|
NOTE
Reconciliation of the
number of shares outstanding at the beginning and end of the year:
|
Particulars |
As at 31st March, 2013 |
|
Balance as at the beginning of the year |
1,640,054,795 |
|
Issued during the year |
- |
|
Balance as at the end of the year |
1,640,054,795 |
Terms and Rights
attached to equity shares :
(i) The Company has only one class of equity shares having a par value of Rs.10 each. Each holder of equity shares is entitled to one vote per share. The Company declares and pay dividend in Indian rupees. The dividend proposed by the Board of Directors is subject to approval of the Shareholders in the ensuing Annual General Meeting.
(ii) In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amount, in proportion to the shareholding. However, no such preferential amount exists currently.
Details of
shareholding more than 5%
|
Name of the
Companies |
As at 31st March, 2013 |
|
JSW Investments Private Limited |
536,201,147 |
|
|
32.69% |
|
Sun Investments Private Limited |
270,892,170 |
|
|
16.52% |
|
Vrindavan Services Private Limited |
110,146,190 |
|
|
6.72% |
Aggregate number of
Bonus shares issued and shares issued for consideration other than cash during the
last five years :
(No. of
|
Particulars |
As at 31st March, 2013 |
|
Equity Shares issued as fully paid bonus shares by capitalisation of General Reserve and Surplus |
819,856,914 |
|
Equity Shares allotted pursuant to the scheme of Amalgamation without consideration being received in cash |
31,816,044 |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
I.
EQUITY
AND LIABILITIES |
|
|
|
|
(1)Shareholders' Funds |
|
|
|
|
(a) Share Capital |
16400.500 |
16400.500 |
16400.500 |
|
(b) Reserves & Surplus |
51331.900 |
45186.700 |
43853.400 |
|
(c) Money
received against share warrants |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
(2) Share Application money pending
allotment |
0.000 |
0.000 |
0.000 |
|
Total
Shareholders’ Funds (1) + (2) |
67732.400 |
61587.200 |
60253.900 |
|
|
|
|
|
|
(3)
Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
47173.000 |
49609.900 |
51580.200 |
|
(b) Deferred tax liabilities (Net) |
1537.200 |
1381.700 |
1405.400 |
|
(c) Other long term
liabilities |
23.600 |
5.000 |
5.000 |
|
(d) long-term
provisions |
53.100 |
30.300 |
18.700 |
|
Total Non-current
Liabilities (3) |
48786.900 |
51026.900 |
53009.300 |
|
|
|
|
|
|
(4)
Current Liabilities |
|
|
|
|
(a) Short
term borrowings |
1200.000 |
0.000 |
1002.000 |
|
(b) Trade
payables |
20889.500 |
23845.200 |
8025.600 |
|
(c) Other
current liabilities |
8650.700 |
6995.900 |
6134.500 |
|
(d) Short-term
provisions |
3878.600 |
971.900 |
1938.600 |
|
Total Current
Liabilities (4) |
34618.800 |
31813.000 |
17100.700 |
|
|
|
|
|
|
TOTAL |
151138.100 |
144427.100 |
130363.900 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1)
Non-current assets |
|
|
|
|
(a) Fixed
Assets |
|
|
|
|
(i)
Tangible assets |
69444.200 |
69125.700 |
47223.900 |
|
(ii) Intangible
Assets |
16.000 |
27.000 |
22.000 |
|
(iii)
Capital work-in-progress |
7911.900 |
8010.500 |
27404.000 |
|
(iv)
Intangible assets under development |
0.000 |
0.000 |
27.200 |
|
(b) Non-current Investments |
23041.800 |
22782.000 |
20417.300 |
|
(c) Deferred tax assets (net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
18519.800 |
10059.800 |
5539.000 |
|
(e) Other
Non-current assets |
0.000 |
0.000 |
0.000 |
|
Total Non-Current
Assets |
118933.700 |
110005.000 |
100633.400 |
|
|
|
|
|
|
(2)
Current assets |
|
|
|
|
(a)
Current investments |
5909.200 |
2100.200 |
2452.700 |
|
(b)
Inventories |
4110.300 |
7051.400 |
4808.000 |
|
(c) Trade
receivables |
13201.900 |
6142.200 |
5313.500 |
|
(d) Cash
and cash equivalents |
3146.000 |
6369.500 |
8213.000 |
|
(e)
Short-term loans and advances |
5292.700 |
10848.300 |
7335.500 |
|
(f) Other
current assets |
544.300 |
1910.500 |
1607.400 |
|
Total
Current Assets |
32204.400 |
34422.100 |
29730.100 |
|
|
|
|
|
|
TOTAL |
151138.100 |
144427.100 |
130363.900 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
|
|
SALES |
|
|
|
|
|
|
|
Revenue from operations |
63964.500 |
50164.200 |
38690.500 |
|
|
|
Other Income |
3047.800 |
1140.200 |
1121.000 |
|
|
|
TOTAL (A) |
67012.300 |
51304.400 |
39811.500 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of fuel |
38942.800 |
34602.800 |
20780.500 |
|
|
|
Increase in banked energy |
(33.100) |
0.000 |
0.000 |
|
|
|
Employee benefits expense |
1065.000 |
809.000 |
669.400 |
|
|
|
Other expenses |
2932.400 |
2610.200 |
1941.800 |
|
|
|
Exceptional Items - Net foreign exchange loss |
1699.500 |
1516.100 |
0.000 |
|
|
|
TOTAL (B) |
44606.600 |
39538.100 |
23391.700 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
22405.700 |
11766.300 |
16419.800 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
5718.000 |
5081.600 |
3410.000 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
16687.700 |
6684.700 |
13009.800 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
4249.400 |
3772.200 |
2116.100 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
12438.300 |
2912.500 |
10893.700 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
2508.000 |
566.100 |
2037.600 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
9930.300 |
2346.400 |
8856.100 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
17177.100 |
17178.500 |
12044.300 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Debenture Redemption Reserve |
1352.300 |
1394.800 |
1815.700 |
|
|
|
General Reserve |
744.800 |
0.000 |
0.000 |
|
|
|
Proposed Dividend |
3280.100 |
820.000 |
1640.100 |
|
|
|
Dividend Distribution Tax |
557.500 |
133.000 |
266.100 |
|
|
BALANCE CARRIED
TO THE B/S |
21172.700 |
17177.100 |
17178.500 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
30473.200 |
27756.800 |
12498.900 |
|
|
|
Stores & Spares |
53.700 |
11.400 |
3.600 |
|
|
|
Capital Goods |
29.300 |
643.200 |
342.300 |
|
|
|
Others |
50.100 |
19.500 |
1.100 |
|
|
TOTAL IMPORTS |
30606.300 |
28430.900 |
12845.900 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
6.05 |
1.43 |
5.40 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2013 |
30.09.2013 |
31.12.2013 |
31.03.2014 |
|
|
1st Quarter |
2nd Quarter |
3rd Quarter |
4th Quarter |
|
Net Sales |
14993.100 |
12299.200 |
15480.900 |
1,5252.900 |
|
Total Expenditure |
9189.100 |
7661.600 |
10783.200 |
1,0291.900 |
|
PBIDT (Excl OI) |
5804.000 |
4637.600 |
4697.700 |
4961.000 |
|
Other Income |
669.300 |
600.500 |
588.400 |
691.200 |
|
Operating Profit |
6473.300 |
5238.100 |
5286.100 |
5652.200 |
|
Interest |
1378.700 |
1457.900 |
1801.200 |
1637.700 |
|
Exceptional Items |
(1725.200) |
(1628.900) |
(414.400) |
92.400 |
|
PBDT |
3369.400 |
2151.300 |
3070.500 |
4106.900 |
|
Depreciation |
1110.100 |
1153.800 |
1144.200 |
1120.400 |
|
Profit Before Tax |
2259.300 |
997.500 |
1926.300 |
2986.500 |
|
Tax |
586.500 |
243.700 |
584.600 |
730.000 |
|
Provisions and contingencies |
0.000 |
0.000 |
0.000 |
0.000 |
|
Profit After Tax |
1672.800 |
753.800 |
1341.700 |
2256.500 |
|
Extraordinary Items |
0.000 |
0.000 |
0.000 |
0.000 |
|
Prior Period Expenses |
0.000 |
0.000 |
0.000 |
0.000 |
|
Other Adjustments |
0.000 |
0.000 |
0.000 |
0.000 |
|
Net Profit |
1672.800 |
753.800 |
1341.700 |
2256.500 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
PAT / Total Income |
(%) |
14.82
|
4.57
|
22.25
|
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
19.45
|
5.81
|
28.16
|
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
10.35
|
2.56 |
13.20 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.18
|
0.05 |
0.18 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt /Networth) |
|
0.71
|
0.81 |
0.87 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
0.93
|
1.08 |
1.74 |
FINANCIAL ANALYSIS
[all figures are
in Rupees Millions]
DEBT EQUITY RATIO
|
Particular |
31.03.2011 |
31.03.2012 |
31.03.2013 |
|
|
(Rs.
In Millions) |
(Rs.
In Millions) |
(Rs.
In Millions) |
|
Share Capital |
16400.500 |
16400.500 |
16400.500 |
|
Reserves & Surplus |
43853.400 |
45186.700 |
51331.900 |
|
Net
worth |
60253.900 |
61587.200 |
67732.400 |
|
|
|
|
|
|
long-term borrowings |
51580.200 |
49609.900 |
47173.000 |
|
Short term borrowings |
1002.000 |
0.000 |
1200.000 |
|
Total
borrowings |
52582.200 |
49609.900 |
48373.000 |
|
Debt/Equity
ratio |
0.873 |
0.806 |
0.714 |
YEAR-ON-YEAR GROWTH
|
Year
on Year Growth |
31.03.2011 |
31.03.2012 |
31.03.2013 |
|
|
(Rs.
In Millions) |
(Rs.
In Millions) |
(Rs.
In Millions) |
|
Sales |
38690.500 |
50164.200 |
63964.500 |
|
|
|
29.655 |
27.510 |
NET PROFIT MARGIN
|
Net
Profit Margin |
31.03.2011 |
31.03.2012 |
31.03.2013 |
|
|
(Rs.
In Millions) |
(Rs.
In Millions) |
(Rs.
In Millions) |
|
Sales |
38690.500 |
50164.200 |
63964.500 |
|
Profit |
8856.100 |
2346.400 |
9930.300 |
|
|
22.89% |
4.68% |
15.52% |
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 |
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 |
Yes |
|
32] |
PAN of Proprietor/Partner/Director, if available |
No |
|
33] |
Voter ID No of Proprietor/Partner/Director, if available |
No |
|
34] |
External Agency Rating, if available |
Yes |
LITIGATION
DETAILS:
|
Case Details Bench:- Bombay |
|||||||
|
Presentation Date: 12.07.2013 |
|||||||
|
Lodging No:- |
ITXAL/1119/2013 |
Failing Date:- |
12.07.2013 |
Reg. No.:- |
ITXA/1468/2013 |
Reg. Date:- |
03.08.2013 |
|
Petitioner:- |
THE COMMISSIONER OF INCOME TAX. CENT |
Respondent:- |
JSW ENERGY LTD |
||||
|
Petn. Adv:- |
TEJVEER SINGH |
Resp. Adv.:- |
VAISH ASSOCIATES |
||||
|
District:- |
MUMBAI |
||||||
|
Bench:- |
DIVISION |
Category:- |
TAX APPEALS |
||||
|
Status:- |
Pre-Admission |
Stage:- |
|||||
|
Next Date:- |
10.07.2014 |
||||||
|
Coram:- |
ACCORDING TO SITTING LIST ACCORDING TO SITTING LIST |
||||||
|
Act:- |
Income Tax Act, 1961 |
Under Section:- |
260A |
||||
INDEX OF CHARGES
|
S. No. |
Charge ID |
Date of Charge
Creation/Modification |
Charge amount
secured |
Charge Holder |
Address |
Service Request
Number (SRN) |
|
1 |
10359150 |
30/05/2012 |
1,000,000,000.00 |
YES BANK LIMITED |
9TH FLOOR, NEHRU CENTRE, DISCOVERY OF INDIA,, DR. |
B41011966 |
|
2 |
10318837 |
13/12/2011 * |
16,500,000,000.00 |
IDBI TRUSTEESHIP SERVICES LIMITED |
Asian Bldg., Ground Floor, 17, R.Kamani Marg, Ballard Estate, MUMBAI, Maharashtra - 400001, INDIA |
B27761287 |
|
3 |
10318841 |
13/12/2011 * |
13,000,000,000.00 |
IDBI TRUSTEESHIP SERVICES LIMITED |
Asian Bldg., Ground Floor, 17, R.Kamani Marg, Ballard Estate, MUMBAI, Maharashtra - 400001, INDIA |
B27761808 |
|
4 |
10304168 |
10/08/2011 |
2,950,000,000.00 |
Punjab National Bank |
Maker Tower 'E', Ground Floor, Cuffe Parade, Mumbai, Maharashtra - 400005, INDIA |
B19618271 |
|
5 |
10267059 |
22/04/2013 * |
22,800,000,000.00 |
IDBI TRUSTEESHIP SERVICES LIMITED |
Asian Bldg., Ground Floor, 17, R.Kamani Marg, Ballard Estate,, MUMBAI, Maharashtra - 400001, INDIA |
B75398735 |
|
6 |
10242287 |
14/01/2011 * |
12,000,000,000.00 |
IDBI TRUSTEESHIP SERVICES LIMITED |
Asian Bldg., Ground Floor, 17, R.Kamani Marg, Ballard Estate, MUMBAI, Maharashtra - 400001, INDIA |
B03077666 |
|
7 |
10221262 |
23/03/2011 * |
3,065,000,000.00 |
PUNJAB NATIONAL BANK |
Vokkaligara Sangha Building, 1st Floor, Hudson Circle, Bangalore, Karnataka - 560027, INDIA |
B10321255 |
|
8 |
10218902 |
23/03/2011 * |
3,065,000,000.00 |
IDBI Bank Limited |
IDBI TOWERWTC COMPLEX, CUFFE PARADE, MUMBAI, Maharashtra - 400005, INDIA |
B10347375 |
|
9 |
10221246 |
23/03/2011 * |
1,530,000,000.00 |
CANARA BANK |
PRIME CORPORATE BRANCH NO 25, SHANKARANARAYNA BUI |
B10402303 |
|
10 |
10181865 |
26/03/2011 * |
4,000,000,000.00 |
IDBI TRUSTEESHIP SERVICES LIMITED |
Asian Bldg., Ground Floor, 17, R.Kamani Marg, Ballard Estate, MUMBAI, Maharashtra - 400001, INDIA |
B10296507 |
* Date of charge modification
FINANCIAL PERFORMANCE
STANDALONE:
The total revenue of the Company for fiscal 2013 stood at Rs. 67012.300 Millions as against Rs. 51304.400 Millions for fiscal 2012 showing an increase of 31%.
The EBIDTA (before exceptional items) increased by 81% from Rs. 13282.400 Millions in fiscal 2012 to Rs. 24105.200 Millions in fiscal 2013.
Profit for the year increased by 323% from Rs. 2346.400 Millions in fiscal 2012 to Rs. 9930.300 Millions in fiscal 2013.
The net worth of the Company increased to Rs. 67732.400 Millions at the end of fiscal 2013 from Rs. 61587.200 Millions at the end of fiscal 2012.
The debt gearing of the Company was at 0.80 times as at the end of fiscal 2013 compared to 0.87 times at the end of fiscal 2012.
NEW PROJECTS,
INITIATIVES AND JOINT VENTURES
240 mW Kutehr Hydro project The Company is implementing the 240 MW (3X80 MW) run of the river Hydro Electric Project (HEP) on the upper reaches of river Ravi in district Chamba of Himachal Pradesh. An Implementation Agreement (IA) was signed with Himachal Pradesh (HP) Government on 4th March, 2011.
Ministry of Environment and Forests (MoEF) has accorded the Environment Clearance to the project on 5th July, 2011 and Forest Stage-II clearance has been given on 19th February, 2013. Consent to establish has been accorded by the HP State Pollution Control Board on 17th December, 2012.
Kutehr HEP has been registered as carbon credit project by UNFCCC under CDM mechanism of Kyoto protocol. The project is entitled to claim carbon credits from the date of commissioning.
57 Bighas of private land required for the implementation of the project has been acquired through direct negotiations and balance is being acquired through Land Acquisition Act, 1894. The Project is progressing well.
TOSHIBA JSW TURBINE
& GENERATOR PRIVATE LIMITED (TOSHIBA JSW)
Toshiba JSW has been incorporated as a Joint Venture (JV) with a shareholding of 75% by Toshiba Corporation Limited, Japan (Toshiba) and 25% by JSW Group (the Company and JSW Steel Limited) to design, manufacture, marketing and maintenance services of large sized Supercritical Steam Turbines & Generators of size 500 MW to 1000 MW. Technology transfer agreement was signed between Toshiba and Toshiba JSW for transferring supercritical turbine manufacturing technology. The JV with Toshiba would provide the Company with an advantage of being a preferred client for sourcing of state of the art power plant equipment.
The Company has invested Rs.972.500 Millions equivalent to 22.46% of the paid up Equity in Toshiba JSW, with JSW Steel Limited holding 2.54% and Toshiba holding 75%. The Manufacturing facility of Toshiba JSW has been established and production activity commenced for supply of 3 X 800 MW Supercritical Turbine and Generators sets for Kudgi Power plant, Karnataka and 2 X 660 MW Supercritical Turbine and Generator sets for Meja Power Project, Uttar Pradesh under the orders bagged from NTPC Limited.
It is also decided to expand the Manufacturing facility to enhance annual production capacity from 3000 MW to 6000 MW and construction work for the same is in progress.
MJSJ COAL LIMITED
(MJSJ)
In terms of the Joint Venture Agreement to develop Utkal-A and Gopal Prasad (West) Thermal coal block in Odisha, the Company has participated in the 11% Equity of MJSJ, Odisha along with four other partners. The Government of India decided to allot 1,522 acres of Gopal Prasad west area to MJSJ. Mahanadi Coalfields Limited, a Public Sector Company holds 60% of the Equity. Land acquisition by Government of India under Section 9(1) of Coal Bearing Areas (Acquisition and Development) Act, 1957 has been completed. Ministry of Coal, Government of India has been requested for vesting of land in favour of MJSJ under the provisions of Section 11 of the Act. Other pre-development activities like statutory clearances are in the process of completion. The Company has invested Rs. 104.600 Millions towards its 11% stake as on 31st March, 2013.
POWER EXCHANGE OF
INDIA LIMITED (PXIL)
The Company has
invested Rs.12.500 Millions in
PXIL which provides
the platform for
trading
in electricity. PXIL
is promoted by
National Stock Exchange of
India Limited and
National Commodities & Derivatives Exchange Limited.
MANAGEMENT DISCUSSION
AND ANALYSIS
ECONOMIC REVIEW
GLOBAL OUTLOOK
Global economic prospects have improved, but the road to recovery still remains vulnerable to headwinds. Over the past several months, advanced economy policymakers have successfully defused two of the biggest short-term threats to the global recovery – the threat of euro area breakup and a sharp fiscal contraction in the United States caused by a plunge off the “fiscal cliff.” In response, the financial stability has improved, as underscored in the April, 2013 Global Financial Stability Report (GFSR). The stability helped economic recovery by improving funding conditions and supporting confidence, but the overall growth prospects are yet to change. U.S. private demand has been showing strength as credit and housing markets are healing and larger-than-expected fiscal adjustment projected real GDP growth of about 2 percent in 2013. In the euro area, banks still face challenges of poor profitability and low capital, constraining the supply of credit. Also, in many economies, economic activity is affected by continued fiscal adjustment, balance sheet weaknesses and political risks. However, Japan, by contrast, projects a rebound, driven by fiscal and monetary stimulus. Overall, the annual growth forecast for advanced economies in 2013 is a modest 1 percent.
In case of the emerging economies, there was a noticeable slowdown during 2012 – a reflection of the sharp deceleration in demand from key advanced economies, domestic policy tightening, and the end of investment booms in some of the major developing markets. Economies in the Middle East and North Africa continue to struggle with difficult internal transitions. Few economies in South America are facing high inflation and increasing exchange market pressure. However, with consumer demand resilient, macroeconomic policies on hold and exports reviving, most economies in Asia, sub Saharan Africa, Latin America and the Commonwealth of Independent States are seeing higher growth.
DOMESTIC OUTLOOK
The Indian economic growth also faced major roadblocks to economic development during fiscal 2013, due to sluggish global trade, weak foreign direct investment scenario and declining global growth. The principal reasons for the lower growth during fiscal 2013 have primarily been, a tighter monetary policy to rein in inflation, fall in domestic savings, slowdown in corporate infrastructure investment and declining exports.
However, fiscal consolidation, firming up of demand and increase in agricultural production lowered the WPI price inflation considerably to 7.6% (April-January) in 2013, compared to 8.94% in 2012. This provides RBI the headroom to reduce policy rates, which in turn will enhance investment in industry and services. The fiscal deficit also declined to 4.89 % in 2013, compared to 5.7% in 2012. The government is addressing the major concerns, in order to reduce the fiscal deficit to 3% by 2016-17. Moving forward, all the three major sectors of the economy – agriculture, industry and services project better performance in 2013-14 as compared to 2012-13, enhancing the overall economic growth estimate to
the range of 6.1% to 6.7% in 2013-14.
POWER SECTOR REVIEW
Expanding population, growing economies, new technology development and changes in the nature and 50 JSW Energy Limited scope of regulations has transformed the global power landscape. Yet even now, around 1.3 billion people don’t have access to electricity. The world electricity demand is growing rapidly with advancement of emerging economies and improved living standards. Moving forward, global population growth is expected to spur a rapid growth in the electricity demand.
Demographics also impact the demand for power. A robust working age population supports a strong economy and drives power consumption. In some places – primarily within the OECD and China – population is expected to plateau as relatively low birth rates and other factors combine to produce a rising percentage of older citizens. An exception is the United States, which sees continued population growth and thus will maintain a relatively large working-age population. India is expected to become the world’s most populous country and, unlike China, its working-age population is expected to continue to expand, providing a boost to its economic prospects. This economic growth – and the improved living standards fostered by these demographic shifts – creates an opportunity to supply power in a safe, reliable and affordable manner that enables both economic growth and social development.
THERMAL COAL
OVERVIEW
The imported coal prices witnessed a significant correction in FY 2012-13 primarily due to shift from coal to Shale gas in the USA that has made it a net exporter of coal, thereby adding to an excess of seaborne supply. Decline in import by China, depreciation in currencies of the coal exporting countries and continued weakness in Eurozone have added to the decline in coal prices.
The global seaborne trade witnessed an increase of 11.8% in Calendar Year (CY) 2012 over CY 2011 from 739 MMT to 826 MMT, while the Indian imports have shown a steady increase of 14% from 94 MMT to 107 MMT in the same period on the back of additional capacity and continued shortage of domestic coal.
On the supply front, the worldwide availability of coal increased by 12% in CY 2012. In CY 2013, the growth in coal availability at 5% is expected to outstrip growth in global sea-borne trade at 4.5%.
While Shale gas is primarily acting as a viable alternative to thermal coal, growth in China and the Eurozone are expected to remain weak. New sources of thermal coal in certain markets are also finding way into the seaborne trade. These developments are expected to rein in the prices of thermal coal in the medium term.
INDIAN POWER
SECTOR OVERVIEW
The Indian power sector has witnessed considerable progress since the initiation of planned development process of the economy in 1950. The installed capacity of power utilities has increased from a meager 1,713 MW in 1950 to 199,877 MW at the end of the Eleventh Five Year Plan. For the same period, the electricity generation has increased from about 5.1 billion KWh to 877 billion KWh, registering a growth of more than 170 times. The per capita annual electricity consumption also increased to about 59 times, from 15 KWh in 1950s to about 879 KWh in 2012, making the country the fourth largest consumer of energy in the world.
COMPANY OVERVIEW
JSW Energy Limited, a part of JSW Group, is a leading power generating company in India, and is an early entrant in the power trading and power transmission business. The Company also has lignite mining rights in Rajasthan and owns mines in South Africa. During the last 4 years, it has enhanced its power generation capacity exponentially from 260 MW to 3140 MW. The Company is present across Karnataka, Maharashtra and Rajasthan, and has plans to expand further into Himachal Pradesh, Chhattisgarh, Jharkhand and West Bengal. Leveraging its operational efficiencies, technological expertise and a highly engaged and motivated workforce, the Company targets a combined installed capacity of 11,770 MW.
CONTINGENT
LIABILITIES:
|
PARTICULARS |
31.03.2013 (Rs.
In Millions) |
31.03.2012 (Rs.
In Millions) |
|
Bank guarantees |
1159.500 |
1209.000 |
|
Corporate guarantees |
8916.600 |
5000.000 |
|
Other Money for which the company is contingently liable: |
|
|
|
Pledge of Shares |
5851.900 |
5178.200 |
|
Disputed Income Tax matters (excluding further interest leviable, if any) |
1218.100 |
784.800 |
|
Other disputed tax matters |
834.000 |
169.500 |
|
Claims not acknowledge as debts |
168.300 |
86.700 |
FIXED ASSETS:
· Freehold Land
· Leasehold Land
· Buildings
· Plant and Machinery
· Furniture and Fittings
· Motor Vehicles
· Specialized Software
PRESS RELEASES:
SELLING POWER VIA LONG-TERM PACTS AUGURS WELL FOR JSW ENERGY
MUMBAI: Lower power offtake by state distribution companies and depreciation of the rupee led to a 36% year-on-year fall in profit for JSW Energy in the September quarter.
The company on Monday reported a net profit of Rs 1620.000 Millions for the quarter. A healthy monsoon resulted in weak demand for power during the quarter. As a result, JSW Energy's plant load factor (PLF), or capacity utilisation , for the quarter dropped to 69.3% from 82% in the year-ago period.
In addition, the depreciation in rupee led to high fuel costs for the company. However, correction in international coal prices partially offset the foreign exchange loss. Overall, the company reported an exceptional loss of Rs 1680.000 Millions in the quarter to September because of depreciation in the rupee.
A positive for the investors is that the foreign exchange losses are unlikely to continue in future. During the quarter, the company completely hedged its foreign exchange exposure. While this may lead to higher operating costs, it would reduce earnings volatility in the coming quarters. Over the past few quarters, the company has been shifting its revenue mix towards long-term contracts.
As of September, the company sold 60% of its output through long-term contracts compared with 48% in the previous year.
The company intends to sell up to 80% of its power through long-term power purchase agreements . This augurs well for the company as merchant or shortterm power tariffs have been under pressure due to lower off take. State distribution companies, or discoms, have become disciplined in buying power post their restructuring.
In addition, the integration of southern grid may reduce merchant rates in south India, the company's key supply region. At present, the company has three operational power plants with a combined capacity of 3,140 MW.
In addition, it has started tendering construction for its 240 MW hydropower project. A healthy debt-to-equity ratio of 1.4 gives the company opportunity to expand its capacity through organic route or acquire distressed projects in the near future. Another development to watch out for in the coming quarters is the final tariff for its Rajasthan power plant. At present, the company sells its power at Rs 3.74 per unit.
A higher price may increase investor sentiment in the stock. At the current price, the stock has been trading at a price-to-book value of 1.2, which is lower than the three-year historic average of 1.7. International coal prices and merchant tariff rates would be the key factors to watch out for the stock movement in the near term.
ET Bureau Oct 30, 2013
RAJASTHAN SHUTS DOWN SOME BIG POWER GENERATING UNITS
Nov 11, 2013
Ahead of state elections, Rajasthan government has been able to minimise power
cuts. However, with demand for power being 10 percent lower than last year,
some big ticket power generating units, including 1,100 megawatt unit of JSW
Energy has been shut down, reports CNBC-TV18's Aastha Maheshwari.
Also Read: Power producers seek MoEF panel rejig on U'khand disaster
Power demand in Rajasthan has dipped below 11 percent and this situation has led to the state shutting down operations for some of the big ticket power projects.
JSW Energy's 1100 megawatt Raj West project has also been shut in the past few days on the back of lower power demand.
Although the plant is shut, it is likely to get capacity charges and will also be able to save fuel. Sources have indicated that the state has also raised concerns on JSW Energy's mining capacity getting exhausted and thus the state has taken this move so as to save coal from getting exhausted.
Further, some of the 6-7 state units have also faced similar shutdown and considering that Rajasthan is now power surplus and its deficit has come down considerably, if this situation is sustained then the dependence on short-term market can get reduced.
OVERHAUL OF 2 UNITS LED TO GENERATION DECLINE: JSW ENERGY
Oct 28, 2013
JSW Energy reported a decline of 2.5 percent in total income for quarter-ended September but held up its margins. In the second quarter of current financial year, the company raked in a total income of Rs 20246.300 Millions compared to Rs 20765.300 Millions in the same period a year ago.
Commenting on the decline seen in generation, Sanjay Sagar, Jt MD & CEO, JSW Energy says, "The reasons for the decline in generation were two; One, we have taken two units for annual overhaul, which are usually done in monsoon quarter, which is at Vijaynagar. Second, at Ratnagiri there was a lot of backing down because of the extend monsoon. Due to that the customers backed down our power to very great extent and that led to a fall in the generation number and in the plant-load-factor (PLF).
The company has 995 MW of operational generating capacity and 2145 MW of generating capacity in the construction or implementation phase.
JSW ENERGY GAINS 7% ON SEB DEBT RESTRUCTURING PLAN
Sep 25, 2012
JSW Energy hit the price target of Rs 60 set by the Deutsche Bank on Tuesday.
The stock rallied 6.57% after the cabinet approved debt restructuring plan for
the State Electricity boards (SEBs).
The government said states would convert all SEB loans into equity and would have to defer recovery till lenders paid. They asked states to settle power outstandings by November 2012.
Deustche Bank has put a buy rating on the stock. "The approval of the SEB restructuring package could improve short term power volumes and could impact JSW Energy positively given its exposure to merchant tariffs," the report said.
Even its trading volumes increased 97% to 10,52,151 equity shares as compared to its five day average of 5,34,947 shares.
Yesterday ahead of cabinet meeting, the share rose 4.07% to close at Rs 56.30.
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.60.11 |
|
|
1 |
Rs.102.32 |
|
Euro |
1 |
Rs.81.75 |
INFORMATION DETAILS
|
Information
Gathered by : |
PRT |
|
|
|
|
Analysis Done by
: |
SUB |
|
|
|
|
Report Prepared
by : |
MRI |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
8 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
7 |
|
--CREDIT LINES |
1~10 |
6 |
|
--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 |
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 |
|
63 |
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.