MIRA INFORM REPORT

Report No. :	318237
Report Date :	20.04.2015

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 :	India

Financials (as on) :	31.03.2014

Date of Incorporation :	15.03.1994

Com. Reg. No.:	11-152925

Capital Investment / Paid-up Capital :	Rs.10671.900 Million

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 :	11,099 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

A (69)

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

Status :	Good

Payment Behaviour :	Regular

Litigation :	Exist

Comments :	Subject is a part of “JSW Group”, which inturn is part of the “O.P. Jindal Group” as a result of the merger of “JSW Ispat Steel Limited” with the subject, it is one of the largest steel producers in India. It is a well-established and a reputed company having fine track. The company possesses a decent financial profile marked by healthy networth along with improvement in operational performance whereas, has witnessed a moderation in its capital structure during FY 14. The ratings also take into consideration the susceptibility of profit margins to volatility in input cost due to lack of raw material integration as well as exposure to foreign exchange risk which may be further mitigated by gradual improvement in availability of iron ore in Karnataka. Trade relations are fair. Business is active. Payment terms are reported as regular and as per commitments. In view of experienced management with well-established track brownfield projects and significant presence in the Indian steel sector, the subject 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 – December 31, 2014

Country Name

Previous Rating

(30.09.2014)

Current Rating

(31.12.2014)

India

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

EXTERNAL AGENCY RATING

Rating Agency Name	CARE
Rating	Long term bank facilities: “AA”
Rating Explanation	High degree of safety and very low credit risk.
Date	17.10.2014

Rating Agency Name	CARE
Rating	Short term bank facilities: “A1+”
Rating Explanation	Very strong degree of safety and lowest credit risk.
Date	17.10.2014

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 31-03-2014.

INFORMATION DENIED BY

Name :	Mr. Ghanshyam
Designation :	Accounts Manager
Contact No.:	91-22-42861000
Date :	18.04.2015

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 :	jvsl.blr@sm3.sprintrpg.ems.vsnl.net.in admin.vijayanagar@jvsl.com lancy.varghese@jsw.in jvsl@jvsl.com ketan.patel@jsw.in paresh.tewary@jsw.in
Website :	http://www.jsw.in

Corporate Office 1:	Victoria House, 2^nd Floor, Pandurang Budhkar Marg, Lower Parel, Mumbai – 400013, Maharashtra, India
Tel No. :	91-22-24927000 / 43437800
Email :	natalie.barretto@jsw.in

Corporate Office 2:	The Enclave, Maratha Udhog Bhavan, New Prabhadevi Road, Prabhadevi, Mumbai – 400025, Maharashtra, India
Tel No. :	91-22-67838000
Fax No. :	91-22-24320740

Factory 1 :	Vijayanagar Works P.O. Vidyanagar, Toranagallu Village, Sandur Taluk, District Bellary - 583275, Karnataka, India
Tel. No.:	91-8395-250120 to 30
Fax No.:	91-8395-250138 / 250665

Factory 2 :	Vasind Works Shahapur Taluk, District Thane - 421604, Maharashtra, India
Tel. No.:	91-2527-220022 to 025
Fax No.:	91-2527-220020 / 84 / 92

Factory 3 :	Tarapur Works MIDC Boisar, District Thane – 401506, Maharashtra, India
Tel. No.:	91-2525-270147 / 270149
Fax No.:	91-2525-270148

Factory 4 :	Salem Works Pottaneri, M. Kalipatti Village, Mecheri Post, Mettur Taluk, District Salem - 636453, Tamilnadu, India
Tel. No.:	91-4298-278400 to 404
Fax No.:	91-4298-278618

Factory 5 :	PO Vidyanagar, Toranagallu, District Bellary – 583275, Karnataka, India
Tel No.:	91-8395-250120 to 30
Fax No.:	91-8395-250138 / 250665

Works :	Geetapuram, Taluka-Pen, District: Dolvi – 402107, Maharashtra, India

Branch Office :	123/124, BM Tower, NPII, New Palasia, Indore, Madhya Pradesh, India

Other Branch Offices :	Located At: · Karnataka · Tamilnadu · Andhra Pradesh · Coimbatore · New Delhi · Madhya Pradesh

Additional Main Office :	Located At: · Mumbai · Bangalore · Rajasthan

Overseas Office :	JSW Steel (USA) Inc. 5200 East Mc Kinney Road, Baytown , TEXAS 77523, U.S.A. Office : 1 - 281 - 383 - 5100 Fax : 1 - 281 - 383 - 1803 Website : www.jswsteelusa.com JSW Steel Service Centre (UK) Limited Lake Road , Leeway Industrial Estate, Newport, NP19 4WN, United Kingdom Tel: 44 - 1633290260 Fax: 44 - 1633290911 Website: www.jswsteel.co.uk

DIRECTORS

AS ON 31.03.2014

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 :	Mr. V. P. Baligar
Designation :	Nominee Director of KSIIDC

Name :	Mr. Hiromu Oka
Designation :	Nominee Director of JFE Steel Corporation, Japan

Name :	Dr. S K Gupta
Designation :	Director

Name :	Mr. Anthony Paul Pedder
Designation :	Director

Name :	Dr. Vijay Kelkar
Designation :	Director

Name :	Mr. Uday M Chitale
Designation :	Director

Name :	Mr. Sudipto Sarkar
Designation :	Director
Date of Birth/Age :	21.03.1946
Qualification :	B.Sc. (Maths - Hons), BA (Law Tripos), LLM (International Law), MA (Law) Barrister, Gray’s Inn. London.
Date of Appointment :	09.05.2005

Name :	Mr. Kannan Vijayaraghavan
Designation :	Director
Date of Birth/Age :	04.05.1959
Qualification :	Fellow Member of the Institute of Chartered Accountants of India, Certified Management Consultant and Fellow of the Institute of Management Consultants.
Date of Appointment :	16.06.2008

Name :	Mrs. Punita Kumar Sinha
Designation :	Director

KEY EXECUTIVES

Name :	Lancy Varghese
Designation :	Company Secretary

Name :	Mr. Ghanshyam
Designation :	Accounts Manager

SHAREHOLDING PATTERN

As on 31.03.2015

Category of Shareholder	Total No. of Shares	Total Shareholding as a % of Total No. of Shares
		As a % of (A+B)
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	4051047	1.68
Central Government / State Government(s)	907952	0.38
Bodies Corporate	86092335	35.62
Sub Total	91051334	37.67
(2) Foreign
Individuals (Non-Residents Individuals / Foreign Individuals)	11099	0.00
Bodies Corporate	5704612	2.36
Sub Total	5715711	2.36
Total shareholding of Promoter and Promoter Group (A)	96767045	40.03
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	4612402	1.91
Financial Institutions / Banks	4309133	1.78
Central Government / State Government(s)	1237500	0.51
Foreign Institutional Investors	45896595	18.99
Sub Total	56055630	23.19
(2) Non-Institutions
Bodies Corporate	17129460	7.09
Individuals
Individual shareholders holding nominal share capital up to Rs. 0.100 Million	13840286	5.73
Individual shareholders holding nominal share capital in excess of Rs. 0.100 Million	10311315	4.27
Any Others (Specify)	47618308	19.70
Trusts	2571668	1.06
Overseas Corporate Bodies	32158	0.01
Non Resident Indians	3219816	1.33
Foreign Corporate Bodies	41794666	17.29
Sub Total	88899369	36.78
Total Public shareholding (B)	144954999	59.97
Total (A)+(B)	241722044	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued
(1) Promoter and Promoter Group	0	0.00
(2) Public	0	0.00
Sub Total	0	0.00
Total (A)+(B)+(C)	241722044	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer and Seller of Iron and Steel Products.

Products :

Item Code (ITC Code)	Product Description
72.08	Hot Rolled Steel Strips/ Sheets/ Plates
72.09	MS Cold Rolled Coils/ Sheet
72.10	MS Galvanized Plain/ Corrugated/Colour coated Coils/ Sheet
720690	Steel Billet
721490	Bar And Rods

Brand Names :

Not Available

Agencies Held :

Not Available

Exports :

Not Divulged

Imports :

Not Divulged

Terms :

Selling :

Not Divulged

Purchasing :

Not Divulged

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

Suppliers :

Reference :	Not Divulged
Name of the Person :	Not Divulged
Contact No.:	Not Divulged
Since How Long Known :	Not Divulged
Experience :	Not Divulged
Maximum Limit Dealt :	Not Divulged

Customers :

Reference :	Not Divulged
Name of the Person :	Not Divulged
Contact No.:	Not Divulged
Since How Long Known :	Not Divulged
Experience :	Not Divulged
Maximum Limit Dealt :	Not Divulged

No. of Employees :

11,099 (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 :

SECURED LOANS	31.03.2014 Rs. In Million	31.03.2013 Rs. In Million
Long Term Borrowings
10.55% Non-Convertible Debentures of Rs.10 Lacs Each	1500.000	0.000
10.50% Non-Convertible Debentures of Rs.10 Lacs Each	1500.000	0.000
10.55% Non-Convertible Debentures of Rs.10 Lacs Each	10000.000	0.000
10.02% Non-Convertible Debentures of Rs.10 Lacs Each	10000.000	0.000
10.34% Non-Convertible Debentures of Rs.10 Lacs Each	10000.000	10000.000
11% Non-Convertible Debentures of Rs.10 Lacs Each	10000.000	10000.000
10.25% Non-Convertible Debentures of Rs.10 Lacs Each	5000.000	5000.000
10.60% Non-Convertible Debentures of Rs.10 Lacs Each	3500.000	3500.000
10.10% Non-Convertible Debentures of Rs.10 Lacs Each	7187.500	9687.500
11.93% Non-Convertible Debentures of Rs.10 Lacs Each	0.000	62.800
11.93% Non-Convertible Debentures of Rs.10 Lacs Each	97.500	175.500
Term Loans
Rupee Term Loans from Banks	91347.700	61725.300
Foreign Currency Term Loans from Banks	6037.000	6956.000
Rupee Term Loans from Financial Institution	30.000	142.300

Short Term Borrowings
Working Capital Loans from Banks	10656.600	2666.100
Foreign Currency Loan from Bank	0.000	8429.200
Rupee Term Loans from Banks	18550.000	0.000
Commercial Paper	10000.000	0.000

Total	195406.300	118344.700


Auditors :
Name :	Deloitte Haskins and Sells Chartered Accountants

Membership :	--

Associates :	· Jindal Praxair Oxygen Company Private Limited · JSW Ispat Steel Limited

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 Ltda · Santa Fe Mining · Santa Fe Puerto S.A. · JSW Natural Resources Limited · JSW Natural Resources Mozambique Ltda · 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) · 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 31.03.2014

Authorised Capital :

No. of Shares	Type	Value	Amount

6015000000	Equity Shares	Rs.10/- each	Rs.60150.000 Million
3000000000	Preference Shares	Rs.10/- each	Rs.30000.000 Million

	Total		Rs.90150.000 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount

241722044	Equity Shares	Rs.10/- each	Rs.2417.200 Million
279034907	Preference Shares	Rs.10/- each	Rs.2790.300 Million
485414604	0.01% Cumulative Redeemable Preference Share Fully Paid-up		Rs.4854.100 Million
	Equity Shares Forfeited [Amount originally paid-up]		Rs.610.300 Million
	Total		Rs.10671.900 Million

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

Equity Shares	Number of Shares
Outstanding at the beginning of the year	223117200
Shares issued during the year	18604844
Outstanding at the end of the year	241722044

Preference Shares	Number of Shares
10% Cumulative Redeemable Preference Shares
Outstanding at the beginning and at the end of the year	279034907
0.01% Cumulative Redeemable Preference Shares
Outstanding at the beginning of the year	--
Issued during the year	485414604
Outstanding at the end of the year	485414604

Rights, preferences and restrictions attached to Equity shares

The Company has a single lass of equity shares each shareholder IS eligible for one vote per share held.

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 mounts, In proportion to their shareholding.

Rights, preferences and restrictions attached to Preference shares

The Company has two classes of preference shares i.e. 10% Cumulative Redeemable Preference Shares (CRPS1] of Rs.10 per share and 0.1% Cumulative Redeemable Preference Shares (CRPS2) of Rs.10 per share. CRPS1 are redeemable at par in four equal 'quarterly Installments commencing from 15 December 2017. The shares carry a right to receive 10% dividend very year till redemption.

Each holder of CRPS2 is entitled to one vote per share, In proportion to the amount paid on CRPS2 held, only on resolutions placed before the Company which directly affect the rights attached to CRPS2. It carries dividend Id 0.01% p.a., when declared. CRPS2 is redeemable at par eight quarterly Installments commencing from 15th June 2018. In the event of liquidation, the preference shareholders are eligible to receive the outstanding amount including dividend after distribution of all other preferential amounts, in proportion to their shareholding. In the event of winding-up of the Company before redemption of preference shares, the holders of CRPSI and CRPS2 will have priority over equity’s hares in the payment of dividend and repayment of capital.

Shareholders holding more than 5% shares in the company is set out below:

Equity Shares	Number of Shares	% of Holding
JSW Steel International Europe B.V	36258307	15.00%
JSW Holdings Limited	17284923	7.15%
JSW Investment Private Limited	12599601	5.21%
JSW Energy Investments Private Limited	6184200	2.56%

Preference Shares	Number of Shares	% of Holding
10% Cumulative Redeemable Preference Shares
ICICI Bank Limited	125707730	45.05%
IDBI Bank Limited	69734847	24.99%
Life Insurance Corporation of India	36348783	13.03%
IFCI Limited	21262362	7.62%
0.01% Cumulative Redeemable Preference Shares
JSW Logistics Infrastructure Private Limited	338586951	69.75%

Shares allotted as fully paid-up pursuant to contracts without payment being received in cash during the period of five years immediate preceding the date of the balance sheet are as under:

1,86,04,844 equity shares to the shareholders of the erstwhile JSW Ispat Steel Limited pursuant to a composite scheme of amalgamation and arrangement.

48,54,14,604 0.01% cumulative redeemable preference shares fully paid upto the shareholders of the erstwhile JSW Ispat Steel Limited pursuant to a composite scheme of Amalgamation and Arrangement.

FINANCIAL DATA

[all figures are in Rupees Million]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2014	31.03.2013	31.03.2012
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	10671.900	5631.800	5631.800
(b) Reserves & Surplus	232169.900	193741.900	179343.100
(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)	242841.800	199373.700	184974.900

(3) Non-Current Liabilities
(a) long-term borrowings	210543.200	154342.600	115280.900
(b) Deferred tax liabilities (Net)	19085.100	34502.300	30120.900
(c) Other long term liabilities	4664.000	1940.600	827.200
(d) long-term provisions	406.700	395.100	329.000
Total Non-current Liabilities (3)	234699.000	191180.600	146558.000

(4) Current Liabilities
(a) Short term borrowings	39206.600	11095.300	7741.300
(b) Trade payables	99912.500	92743.600	91844.500
(c) Other current liabilities	64159.700	48739.800	71825.200
(d) Short-term provisions	3437.200	3020.500	2269.200
Total Current Liabilities (4)	206716.000	155599.200	173680.200

TOTAL	684256.800	546153.500	505213.100

II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	372251.200	276044.700	270716.900
(ii) Intangible Assets	699.600	343.200	188.900
(iii) Capital work-in-progress	67896.600	50339.700	24767.700
(iv) Intangible assets under development	678.100	405.700	270.400
(b) Non-current Investments	43128.500	44956.100	42122.000
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	49614.700	30839.900	26514.400
(e) Other Non-current assets	0.000	0.800	15.800
Total Non-Current Assets	534268.700	402930.100	364596.100

(2) Current assets
(a) Current investments	677.000	1404.500	2012.200
(b) Inventories	61965.700	47991.000	51790.800
(c) Trade receivables	22187.400	18622.000	12846.200
(d) Cash and cash equivalents	4657.200	14017.900	29560.200
(e) Short-term loans and advances	60500.800	61188.000	44407.600
(f) Other current assets	0.000	0.000	0.000
Total Current Assets	149988.100	143223.400	140617.000

TOTAL	684256.800	546153.500	505213.100

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2014	31.03.2013	31.03.2012
	SALES
		Income	452977.200	354918.100	321226.600
		Other Income	3310.500	2608.800	1793.000
		TOTAL (A)	456287.700	357526.900	323019.600

Less	EXPENSES
		Cost of materials consumed	267058.200	225903.700	209601.100
		Purchases of traded goods	4948.100	100.000	775.000
		Changes in inventories of Finished goods, Work-in-progress and Stock-in-Trade	(2441.000)	(1724.600)	(2978.100)
		Employee benefits expense	7995.800	6709.700	6258.700
		Other expenses	87590.200	60841.100	51261.900
		Exceptional Items	16923.000	3672.100	8209.600
		TOTAL (B)	382074.300	295502.000	273128.200

Less	PROFIT / (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		74213.400	62024.900	49891.400

Less	FINANCIAL EXPENSES (D)		27401.300	17244.800	11864.100

	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		46812.100	44780.100	38027.300

Less	DEPRECIATION/ AMORTISATION (F)		27258.800	19738.900	17081.700

	PROFIT / (LOSS) BEFORE TAX (E-F) (G)		19553.300	25041.200	20945.600

Less	TAX (H)		6208.200	7029.000	4687.000

	PROFIT / (LOSS) AFTER TAX (G-H) (I)		13345.100	18012.200	16258.600

Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		33060.200	19873.000	27883.600

Less	PURSUANT TO THE COMPANIES SCHEME OF AMALGAMATION AND ARRANGEMENT		3419.500	0.000	0.000

Less	APPROPRIATIONS
		Transfer to General Reserve	1340.000	1810.000	23250.000
		Dividend on Additional Equity Shares Issued	217.700	0.000	0.000
		Dividend on Preferences Shares	279.000	279.000	279.000
		Proposed Final Dividend on Equity Shares	2658.900	2231.200	1673.400
		Corporate Dividend Tax	499.300	426.600	316.800
		Transfer To Debenture Redemption Reserve	541.600	78.200	(1250.000)
	BALANCE CARRIED TO THE B/S		37449.300	33060.200	19873.000

	EARNINGS IN FOREIGN CURRENCY
		F.O.B. Value of Exports	80564.500	69693.500	53752.200
		Sale of Carbon Credits	0.000	170.700	133.700
		Commission and Fees	334.600	0.000	0.000
		Interest Income	1930.400	1808.800	1078.300
	TOTAL EARNINGS		82829.500	71673.000	54964.200

	IMPORTS
		Raw Materials	142583.800	104010.900	123970.500
		Stores & Spares	4014.100	4671.000	3723.900
		Capital Goods	15248.700	17213.900	9755.300
	TOTAL IMPORTS		161846.600	125895.800	137449.700

	Earnings / (Loss) Per Share (Rs.)		53.86	79.28	71.42

QUARTERLY / SUMMARISED RESULTS

PARTICULARS	Jun 2014	September 2014	December 2014
Net Sales	115463.300	120534.900	115051.800
Total Expenditure	90853.400	96231.000	94894.800
PBIDT (Excl Ol)	24609.900	24303.900	20157.000
Other Income	980.100	1191.600	884.600
Operating Profit	25590.00	25495.500	21041.600
Interest	7230.000	7196.300	7811.000
Exceptional Items	0.000	0.000	0.000
PBDT	18360.000	18299.200	13230.600
Depreciation	6633.800	6991.800	7124.000
Profit Before Tax	11726.200	11307.400	6106.600
Tax	3712.500	3690.500	1959.700
Provisions and contingencies	0.000	0.000	0.000
Profit After Tax	8013.700	7616.900	4146.900
Extraordinary Items	0.000	0.000	0.000
Prior Period Expenses	0.000	0.000	0.000
Other Adjustments	0.000	0.000	0.000
Net Profit	8013.700	7616.900	4146.900

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
Net Profit Margin (PAT / Sales)	(%)	2.95	5.08	5.06

Operating Profit Margin (PBDIT/Sales)	(%)	16.38	17.48	15.53

Return on Total Assets (PBT/Total Assets}	(%)	3.42	5.56	4.78

Return on Investment (ROI) (PBT/Networth)		0.08	0.13	0.11

Debt Equity Ratio (Total Debt /Networth)		1.03	0.83	0.67

Current Ratio (Current Asset/Current Liability)		0.73	0.92	0.81

FINANCIAL ANALYSIS

[all figures are in Rupees Million]

DEBT EQUITY RATIO

Particular	31.03.2012	31.03.2013	31.03.2014
	Rs. In Million	Rs. In Million	Rs. In Million
Share Capital	5631.800	5631.800	10671.900
Reserves & Surplus	179343.100	193741.900	232169.900
Net worth	184974.900	199373.700	242841.800

long-term borrowings	115280.900	154342.600	210543.200
Short term borrowings	7741.300	11095.300	39206.600
Total borrowings	123022.200	165437.900	249749.800
Debt/Equity ratio	0.665	0.830	1.028

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2012	31.03.2013	31.03.2014
	Rs. In Million	Rs. In Million	Rs. In Million
Sales	321,226.600	354,918.100	452,977.200
		10.488	27.629

NET PROFIT MARGIN

Net Profit Margin	31.03.2012	31.03.2013	31.03.2014
	Rs. In Million	Rs. In Million	Rs. In Million
Sales	321,226.600	354,918.100	452,977.200
Profit	16,258.600	18,012.200	13,345.100
	5.06%	5.08%	2.95%

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	Yes
10]	Designation of contact person	Yes
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:-06/02/2015
Lodging No.:-	CEXAL/33/2015	Filing Date:-	06/02/2015	Reg. No.: -	CEXA/82/2015	Reg. Date :-	11/03/2015

Petitioner:-

THE COMMISSIONER CENTRAL EXCISE THANE -1

Respondent:-

M/S JSW STEEL LIMITED

Petn.Adv.:-

JITENDRA BRIJBHUSHAN MISHRA (12937)

District:-

MUMBAI

Bench:-	DIVISION
Status:-	Pre-Admission	Category:-	CENTRAL EXCISE APPEAL (CEXA)
Next Date :-	27/04/2015	Stage :-	FOR ADMISSION
Coram	HON’BLE SHRI JUSTICE B.R. GAVAI HON’BLE SHRI JUSTICE A.S. GADKARI

Act :-

Central Excise & Salt Act

Under Section:-

35G

UNSECURED LOAN:

Particulars	31.03.2014 Rs. In Million	31.03.2013 Rs. In Million
Long Term Borrowings
Foreign Currency Term Loans from Banks	53326.500	45985.500
Deferred Sales Tax Loan	1017.000	1107.700

Total	54343.500	47093.200

FINANCIAL HIGHLIGHTS:

The Scheme of Amalgamation and Arrangement ("the Scheme") between the Company and JSW ISPAT Steel Limited and others, which became effective June 1, 2013 with appointed date of July 1, 2012. Therefore, the numbers of FY 2013-14 are not comparable with FY 2012-13 as the effect of implementation of the Scheme is included in the current year figures.

STANDALONE RESULTS:

The Company produced 12.17 million tonnes of crude steel in FY 2013-14, up 43% over the previous year. Its steel sales grew to 11.86 million tonnes, increasing by 34% year on year. The Company took several initiatives during the last financial year that helped in achieving impressive growth in production and sales volumes. The Company commissioned new facilities to enrich product mix, leveraged the export demand, diversified its inputs sourcing strategy and strengthened market penetration through wider distribution and newer formats.

The Gross Turnover and Net Turnover for the year under review was Rs.485270.000 Million and Rs.445290.000 Million, respectively, and showed a growth of 25% and 26%, respectively. The Operating EBITDA was Rs.387830.000 Million, and showed a growth of 39% with an improvement in EBIDTA margin from 17.8% to 19.4%. The net profit after tax was Rs.13350.000 Million after considering exceptional loss of Rs.16920.000 Million. The exceptional loss is due to the significant movement and volatility in the value of the rupee against US dollar.

The net worth of your Company increased to Rs.3242840.000 Million as on March 31, 2014 from Rs.199370.000 Million as on March 31, 2013. The Company’s net debt gearing was at 1.10 (compared to 0.82 as on March 31, 2013) and net debt to EBIDTA was at 3.03 (compared to 2.59, as on March 31, 2013).

SCHEME OF ARRANGEMENT AND AMALGAMATION:

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 was sanctioned by the Hon’ble Bombay High Court vide its Order dated May 3, 2013. The Appointed Date in terms of the Scheme is July 1, 2012. The said Scheme has become effective June 1, 2013, consequent to the filing of Hon’ble High Court’s Order with the Registrar of Companies.

PROSPECTS:

ECONOMY

In FY 2013-14, India was besieged by high inflation, rapidly depreciating Rupee, rising NPAs, declining manufacturing, stagnant investments and subdued exports with adverse downside risk to future economic growth. However, prudent and timely measures by RBI and the Government restored macroeconomic stability, lowering Current Account Deficit to below 2.5% and contained Fiscal Deficit at 4.6%.

World economy is projected to grow at 3.6% in CY3 2014 up from 3% in CY 2013 majorly aided by steady growth in Europe from 0.2% to 1.6% and US from 1.9% to 2.8%. Emerging Markets are projected to exhibit a moderate growth at 4.9%. China is focusing on ‘Quality’ engineered growth, with emphasis on increasing domestic consumption demand. Emerging countries remain vulnerable to the ongoing tapering of quantitative easing in the US, and gradual withdrawal is expected to reduce this risk.

Global commodity prices are projected to remain moderate and this could support India’s recovery. Sustained growth is expected as the Indian economy over-rides the structural impediments and policy stimulates business confidence and accelerate fiscal correction.

STEEL SECTOR

Indian steel demand grew to 73.9 million tonne during FY 2013-14 with Flat Steel down by 2% while Longs displayed a growth of 2.6%. Impacted by inadequacy and inconsistent quality of iron ore, capacity utilisation for Indian steel declined from 81% in FY 2012-13 to 78% in FY 2013-14.

Sluggish domestic demand with rising capacity and increased production resulted in growing thrust on import substitution, resulting in a sharp decline of imports by 34%. Expanding new-age steel capacities and incorporating world-class technologies and rupee depreciation helped India to increase its steel exports by 13%. This exhibits growing global competitiveness of Indian steel industry; thus transforming India into a net steel exporter.

Global crude steel capacity is projected to increase by 88 million tonnes to 2256 million tonnes during CY 2014. Steel demand in CY 2014 is expected to increase by 53 million tonnes or 3.6% to 1534 million tonnes exhibiting significant demand growth for Europe at 3.1% with Advanced Markets up by 2.5% as against -0.2% in CY 2013. Chinese steel demand projected at 728 million tonnes with its growth moderating to 4% as against 6.6% in CY 2013. There is need for the sector to restructure to increase efficiency.

The Government is undertaking proactive policy initiatives for Infrastructure development and Industrial growth, which will accelerate steel demand in line with economic growth. However, concerns like poor availability of iron ore and inconsistent quality as well as high import dependency of coking coal need to be addressed.

AWARDS AND ACCOLADES:

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

• Prime Minister`s Trophy for excellence in performance in 2012-13 for Vijayanagar Works which was adjudged the Best Integrated Steel Plant in India.

• ‘Industry Leadership Award’ at Platts Global Metals Awards for achievements in steel, metals and mining.

• Golden Peacock Eco-lnnovation Award 2013 by the National Jury.

• IMC Ramakrishna Bajaj National Quality Award 2013 for `Strong Commitment To Sustainability` under category E for Vijayanagar Works.

• IMC Ramknshna Bajaj National Quality (RBNQ) Performance Excellence Trophy 2013-14.

• Silver Prize, 14th Annual Greentech Environment Award 2013 in Metal and Mining sector.

• Tamil Nadu Government State Safety Award 2012.

• Best Supplier Award from Tata Motors and WABCO for Salem Works.

• Green Manufacturing Excellence Award `Green Challengers` 2014 from Frost & Sullivan.

• Silver Prize, India Manufacturing Excellence Award 2013 from Frost & Sullivan.

• Commendation Certificate, CII-EXIM Bank Award 2013 for Significant Achievement at Bangalore.

• Commendation Certificate, Cll ITC Sustainability Award 2013. Second Prize, National Sustainability Award 2013-14 from Indian Institute of Metals

UNAUDITED FINANCIAL RESULTS FOR QUARTER ENDED 30.06.2014

(Rs. In Million)

Sr. No.	Particular	Quarter Ended (Unaudited)		Nine Month Ended (Unaudited)
Sr. No.	Particular	31.12.2014	30.09.2014	31.12.2014

1.	Income from Operations
	Sale of Products
	Domestic Turnover	100208.000	109097.300	311422.400
	Export Turnover	23471.600	20860.700	66223.700
	Total	123679.600	129958.000	377646.100
	Less: Excise Duty	10580.000	11100.100	31984.400
	Net Sales	113099.600	118857.900	345661.700
	Other Operating Income	1952.200	1677.000	5388.300
	Total Income From Operations (Net)	115051.800	120534.900	351050.000

2.	Expenditure
	Cost of materials consumed	67779.700	75560.000	211406.200
	Purchase of stock in trade	970.200	661.200	2315.100
	Changes in inventories of finished goods, work in progress and stock in trade	(4112.000)	(9712.200)	(17667.900)
	Employee benefits expenses	2326.900	2369.700	7057.100
	Depreciation and amortization expenses	7124.00	6991.800	20749.600
	Power and Fuel	8626.200	9531.200	26425.900
	Other expenses	18287.700	15925.900	49531.500
	Total Expenses	101002.700	101327.600	299817.500

3.	Profit From Operations before Other Income, Interest and Exceptional Items (1-2)	14049.100	19207.300	51232.500
4.	Other Income	884.600	1191.600	3056.300
5.	Profit Before Interest and Exceptional Items (3+4)	14933.700	20398.900	54288.800
6.	Finance Costs	7811.000	7196.300	22237.300
7.	Profit After Interest but before Exceptional Items (5-6)	7122.700	13202.600	32051.500
8.	Exceptional Items	(1016.100)	(1895.200)	(2911.300)
9.	Profit before Tax (7+8)	6106.600	11307.400	29140.200
10.	Tax Expense	1959.700	3690.500	9362.700
11.	Net Profit after Tax (9-10)	4146.900	7616.900	19777.500
14.	Paid-up Equity Share Capital (Face Value of Rs.10/- Each)	2417.200	2417.200	2417.200
15.	Reserves Excluding Revaluation Reserve
16.	Earnings Per Share (EPS) (Rs.)-
	a) Basic	16.81	31.16	21.02
	b) Diluted	16.81	31.16	21.02

INDEX OF CHARGE:

S. No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10556047	18/02/2015	10,000,000,000.00	IDBI TRUSTEESHIP SERVICES LIMITED	ASIAN BUILDING, GROUND FLOOR, 17, R KAMINI MARG, BALLARD ESTATE, MUMBAI, MAHARASHTRA - 400001, INDIA	C46387809
2	10541935	19/12/2014	16,000,000,000.00	SBICAP TRUSTEE COMPANY LIMITED	202, MAKER TOWER E, CUFFE PARADE, MUMBAI, MAHARASHTRA - 400005, INDIA	C39902663
3	10537602	25/11/2014	2,000,000,000.00	IDBI TRUSTEESHIP SERVICES LIMITED	ASIAN BUILDING, GROUND FLOOR, 17, R KAMINI MARG, BALLARD ESTATE,, MUMBAI, MAHARASHTRA - 400001, INDIA	C36871085
4	10532797	31/10/2014	5,000,000,000.00	IDBI TRUSTEESHIP SERVICES LIMITED	ASIAN BUILDING, GROUND FLOOR, 17, R KAMINI MARG, BALLARD ESTATE,, MUMBAI, MAHARASHTRA - 400001, INDIA	C34118307
5	10530052	11/02/2015 *	10,250,000,000.00	IDBI TRUSTEESHIP SERVICES LIMITED	ASIAN BUILDING, GROUND FLOOR, 17, R. KAMANI MARG, BALLARD ESTATE, MUMBAI, MAHARASHTRA - 400001, INDIA	C46012951
6	10528989	27/09/2014	4,925,760,000.00	EXPORT IMPORT BANK OF INDIA	FLOOR 21, CENTRE ONE BUILDING, WORLD TRADE CENTRE, CUFFE PARADE, MUMBAI, MAHARASHTRA - 400005, INDIA	C32190027
7	10507492	19/09/2014 *	3,000,000,000.00	IDBI TRUSTEESHIP SERVICES LIMITED	ASIAN BUILDING, GROUND FLOOR, 17 R. KAMANI MARG, BALLARD ESTATE, MUMBAI, MAHARASHTRA - 400001, INDIA	C28356111
8	10502682	21/01/2015 *	145,542,000,000.00	SBICAP TRUSTEE COMPANY LIMITED	202, MAKER TOWER E, CUFFE PARADE, MUMBAI, MAHARASHTRA - 400005, INDIA	C41857004
9	10504341	08/08/2014 *	10,000,000,000.00	IDBI TRUSTEESHIP SERVICES LIMITED	ASIAN BUILDING, GROUND FLOOR, 17 R. KAMANI MARG, BALLARD ESTATE, MUMBAI, MAHARASHTRA - 400001, INDIA	C18343269
10	10496749	06/05/2014	12,000,000,000.00	STATE BANK OF INDIA	THE CAPITAL, 16TH FLOOR, BANDRA KURLA COMPLEX, BANDRA (EAST), MUMBAI, MAHARASHTRA - 400051, INDIA	C05211198

* Date of charge modification

FIXED ASSETS:

Tangible Assets

· Freehold Land

· Leasehold Land

· Building

· Plant and Machinery

· Furniture And Fixtures

· Vehicles and Aircrafts

Intangible Assets

· Software

PRESS RELEASE:

JSPL WORST HIT; SEE LEAST IMPACT ON TATA STEEL: P LILLADHER

Supreme Court’s verdict that 218 coal blocks allocated since 1993 to 2009 are illegal and unconstitutional has sent ripples across the mining sector with stocks like Jindal Steel and Power , Hindalco and Tata Steel taking a beating.

No clarity has been provided on deallocation of this coal mines hence there concerns cancellation of these blocks could be a possibility. The apex court would hear the consequences of illegality of coal blocks September 1, 2014.

Brokerage house Prabhudas Lilladhar belongs to the camp which expects coal blocks to be cancelled followed by auctions.

Also Read: Neutral on metals, shun JSPL; like cement, energy, says Religare

“Our interaction with legal fraternity suggests that coal blocks would eventually be cancelled given the definition provided by the Court. Simultaneously, the Court would direct the Govt to organise the auctions for these blocks in time bound manner. Operational coal blocks would be allowed to operate by the existing allocatees till the auction takes place, the report says.

On stock specific impact, Naveen Jindal promoted Jindal Steel and Power (JSPL) would be worst hit because its entire 12 million tonne of production come from mines allocated after 1993. Further, it will delay the process of securing mining rights for its much awaited Utkal B-1 mine, critical for its Angul steel cum power project, it adds.

Second in line would be Hindalco as its Talabira-I mine, which was allocated in 1994, supplies 2.5MTPA of coal to meet one-third of its coal requirement.

However, Tata Steel, SAIL and JSW Steel will be least impacted. “Our earnings estimates as well as valuations for Tata, SAIL and JSTL had not factored any contribution from any of their coal blocks given the slow pace of their clearances,” it adds.

ANALYST VIEWS: HOW WILL COAL BLOCKS RULING IMPACT METAL COS

The Supreme Court on Monday ruled that the allocation of around 200 coal blocks between 1993 and 2009 were illegal .

A snapshot of what brokerages are saying about the likely impact of the ruling on various companies:

Hindalco

CLSA: This judgement substantially reduces the probability of Hindalco getting the Mahan coal mine for the Mahan smelter or the Talabira-II coal mine for the Aditya smelter, which lowers the long-term profitability outlook for Hindalco’s India business.

BoAML: We see marginal impact from potential cancellation of Mahan and Talabira II coal block on our FY16e EPS and valuation as a) we expect limited (0.4mt) captive coal from Mahan in 2HFY16 and expect full ramp only by FY19 and b) we do not factor in Talabira II coal block in our estimates

Macquarie: Even in the worst case scenario where Hindalco is forced to import their total requirements, it remains profitable enough with interest coverage ratios in excess of 2x (two times).

JSPL

CLSA: Our estimates for JSPL don’t include any benefit from the Utkal coal mine but de-allocation of the existing coal mines will impact our consolidated FY16-17 EPS estimate by 28-30% (if the company sources entire coal via
linkage) and by a higher 50-60% (if the entire coal comes from e-auctions).

BoaML: Utkal 1B coal block is critical for profitability of its Angul Steel and captive power project. We estimate EBITDA/tonne at Angul could be hit by around USD84/t in absence of captive coal. Assuming, worst casescenario of all coal blocks being cancelled, we estimate impact on FY16 EBIDTA could be 10-23 percent.

Macquarie: Even in the worst case scenario where JSPL is forced to import their total requirements, it remains profitable enough with interest coverage ratios in excess of 2x (two times)

Tata Steel

CLSA: : No impact since its captive coking coal mines were allocated pre 1993

Goldman Sachs: Tata Steel India gets 40% of its coking coal needs through captive coal mines; however, all these coal mines (mainly in West Bokaro and Jharia regions) were allocated pre-1993.

JSW Steel

CLSA: No impact as JSW does not have any operational/upcoming coal mines.

Goldman Sachs: JSW has no captive coal or iron ore mines in India and hence is not impacted.

Sesa Sterlite

Goldman Sachs: For Sesa Sterlite the Durgapur II/Taraimar coal block (4mt capacity) for Balco’s 1,000 MW captive power plant does not impact our valuation as we assume commissioning post FY16.

CLSA: This judgement means that the probability of Balco (51% sub of Sesa Sterlite) getting the mining lease signed for its captive coal mine reduces substantially. This will impact future profitability of Sesa Sterlite’s aluminium business.

JSW STEEL TO ACQUIRE STAKE HELD BY WELSPUN ENTERPRISES IN WELSPUN MAXSTEEL

JSW Steel Ltd has informed BSE about Acquisition of entire equity stake held by Welspun Enterprises Limited ("WEL") in Welspun Maxsteel Limited ("WMSL") by JSW Steel Limited. JSW Steel has entered into a definitive agreement with Welspun Enterprises (WEL) pursuant to which the company shall acquire the entire equity stake held by WEL in Welspun Maxsteel (WMSL) for an enterprise value of Rs 1000 crore plus net current assets as of an agreed dated of August 31, 2014.

JSW STEEL CRUDE STEEL PRODUCTION RISES 12% IN JULY' 14

JSW Steel Ltd has informed BSE regarding a Press Release dated August 08, 2014, titled "Crude Steel production growth : 12% in July' 14". JSW Steel reported crude steel production for July 2014 at 11.13 lakh tons showing a growth of 12 percent over corresponding month of previous year.

JSW STEEL PROMOTER HIKES STAKE IN CO TO 4.74%

JSW Investments, a promoter group firm of JSW Steel , has increased stake in the company by 0.13 percent to 4.74 percent for nearly Rs 320.000 Million through open market transactions. JSW Investments had 4.61 per cent stake or 11,14,55,761 shares in the steel maker before it started buying, the company said in a filing with BSE today.

On December 20, it bought 4,132 shares for Rs 1.335 Million, followed by another 12,000 shares for Rs 11.800 Million on December 23. It again bought 0.135 Million shares for Rs 133.500 Million on December 24 and 0.169 Million shares on December 26 for Rs 169.300 Million. Following the transactions, JSW Investments now holds 4.74 per cent stake or 0.113 Million shares in JSW Steel.

As on September 30, JSW Steel's promoters held 36.25 per cent stake in the firm. Jindal South West Holdings and Jindal Energy Investments have more than five per cent stake in the company. Shares of the company closed at Rs 1,020 apiece, up 1.30 per cent on the BSE today.

JSW STEEL HIKES PRICES BY 2%; EYES BETTER VOLUMES IN FY15

JSW Steel has decided to hike prices by up to 2 percent across the board from January. Seshagiri Rao, Joint MD & Group CFO, JSW Steel, said though the demand is flat, there are pressure on the cost side, particularly iron ore (there's a shortage of iron ore), thus the prices have gone up substantially. "There's a freight increase and and a cost increase which we need to pass it on. At the sametime, there had been a hike in the steel prices internationally," he said on CNBC-TV 18.

Also Read: Steel makers may to raise prices by Rs 1,000/tonne nxt mth

According to World Steel Association's estimates, the steel demand is expected to go up by 48 million tonne in 2014.

JSW Steel has USD 1.6 billion open forex payables.It intends to keep hedging costs to zero and plans to balance forex exposure. The company has a net debt of Rs 30,4350.000 Million.

JSW Steel expects the exports In FY15 to be at 4 million tonne versus 3 million tonne (YoY). The company expects sales volumes in FY15 to improve by 1 million tonne to 12.6 million tonne (YoY) and to continue to spend Rs 10000.000 Million per quarter.

Goldman Sachs rates JSW Steel as buy, as the company's major capex phase is behind it and it is set to generate FCF (free cash flow) in FY15E. "It is also one of the lowest cost convertors and highest CROCI (cash return on capital invested) generators globally and stands to benefit from better domestic iron ore availability," it said.

JSW STEEL TO ACQUIRE WELSPUN MAXSTEEL FOR RS1,000 CRORE

Mumbai: JSW Steel Ltd, India’s third largest steel maker by capacity, has agreed to buy Welspun Maxsteel Ltd (WMSL) in a transaction that values the company at Rs.10000.000 Million as JSW seeks to expand production of the alloy.

WMSL, a unit of Welspun Enterprises Ltd, has long-term debt of Rs.10870.000 Million, Welspun Enterprises said in a BSE filing on Monday.

JSW linked the acqusition to its goal of enhancing its steel production to 40 million tonnes per annum (mtpa) in the next decade, from 14.3 mtpa now.

“WMSL is situated in close proximity (within 40km) to company’s Dolvi unit (in Maharashtra), offering complementary infrastructure and location to augment the current envisaged expansion at Dolvi. In line with this objective, JSW wishes to acquire the entire equity shares of WMSL,” said JSW Steel.

WMSL has an installed capacity of 900,000 tonnes per annum at its gas-based plant, with a captive jetty and a captive railway siding, at Salav village in Raigad district of Maharashtra. The captive jetty, with an existing capacity of 2.5 mtpa, is located 1.8km from the plant, while the captive railway siding is located at Roha junction, 35km from the plant.

“This acquisition is value-accretive to JSW Steel due to synergies in supplying surplus pellets to Welspun Maxsteel and use of DRI (direct reduced iron) from WMSL in company’s steel-making operations at Dolvi plant,” said Seshagiri Rao, joint managing director and group chief financial officer, JSW Steel.

WMSL also has approximately 480 acres of vacant land available for future expansions.

“The company (JSW Steel) has surplus pellets in its subsidiary Amba River Coke Ltd which will be supplied to WMSL. The cost of production in WMSL is expected to come down due to replacement of significant portion of its bought-out pellets with captive pellets. The DRI produced by WMSL shall initially be used partly by the company’s Dolvi unit, and would be consumed in the entirety post completion of its ongoing expansion to 5 mtpa,” JSW Steel said in its statement.

EY and Luthra and Luthra carried out financial and legal due diligence for JSW Steel on the transaction.

JSW Steel Ltd gained 0.14% to Rs.1276.50 on Monday on BSE, while the exchange’s benchmark Sensex gained 1.1% to 26,390.96 points.

In 2010, the company acquired debt-laden Ispat Industries Ltd for Rs.21570.000 Million.

“The land and the port and its integration with JSW’s Dolvi unit seems the main strategy behind this acquisition,” said Goutam Chakraborty, a metal analyst at Emkay Global Financial Services Ltd. “This acquisition, together with that of Ispat one made earlier, will help JSW strengthen its position in the western Indian market.”

Chakraborty said the 480 acres of free land could be used for brownfield expansion such as putting up a pellet plant or mills for making value-added products such as a bars, wire rods and rails and that would be value-accretive since JSW has been focusing on producing more of the high-margin products.

“This is useful especially at a time when land is elusive and greenfield ventures are difficult. This is a strategy they have enforced to overcome the iron ore problems in Karnataka where their main plan operates,” Chakraborty said.

The logistical bottlenecks in the country have also prompted JSW management to invest in facilities near the ports from where shipping in raw materials and shipping out exports becomes easier.

Sajjan Jindal-promoted JSW Steel is looking for other strategic acquisitions too; in Italy, it has bid for parts of the insolvent Lucchini SpA which it can use as a processing centre to sell to Europe at a low cost. The company has also bid for UK steel trader Stemcor’s Indian assets that has mines and a plant in Odisha for $750 million, but talks have not moved further since the January bid.

CRUDE STEEL PRODUCTION GROWTH: 78% IN NOVEMBER’13

JSW Steel Limited has informed BSE regarding a Press Release dated December 09, 2013 titled "Crude Steel production growth: 78% in November'13". JSW Steel reports crude steel production foe November 2013 at 10.72 lakh tons showing a growth of 78 percent over corresponding month of previous year.

AS MINING CURBS BITE, INDIA OFFERS MARKET TO GLUT-HIT IRON ORE

An oversupplied global iron ore market may find some relief from an unlikely source as former No.3 exporter India turns into a big importer due to a cutback in domestic production.

The country may ship in up to 45 million tonnes over the next three years as home-grown iron ore output falls short of domestic steel production needs, an executive at an influential industry group said.

India imported just 0.37 million tonnes of the steelmaking raw material in 2013/14, government data showed. But already JSW Steel, India’s third-largest maker of the alloy, has said it will import 6 million tonnes of iron ore in 2014/15 against zero a year earlier.

“There’s no option but to import to meet the shortfall. We’re looking at between 10 and 15 million tonnes every fiscal year over the next three years,” Basant Poddar, vice president of the Federation of Indian Mineral Industries, the only industry group for mining firms in the country, told Reuters by phone.

“The mine closures all over India, starting from Karnataka, Goa, Odisha and Jharkhand, have created a massive disruption to supply,” Mr Poddar said.

Mining in the key iron ore states of Karnataka and Goa was banned in 2011 and 2012, respectively, following a crackdown on illegal mining by the Supreme Court and the government. Several mines in top producing Odisha state and in Jharkhand too were closed this year following government-imposed restrictions on the renewal of mining licenses.

While the bans have since been lifted, delays in restarting mining operations in Goa and Karnataka and the latest mine closures in the other states have limited local iron ore supply.

The disruptions have cut India’s iron ore production to 152 million tonnes in the year ended March 31, from about 218 million in 2009/10, according to the Indian Bureau of Mines.

The prospect of higher demand from India comes at an opportune time for global iron ore miners, whose margins have been shrunk by a 40 per cent slump in iron ore prices this year.

Iron ore fell to $81.90 a tonne last week, its lowest since September 2009.

The bulk of India’s imports may come from Australia and South Africa, said Mr Poddar, and unlikely from Brazil where shipments are usually made in big vessels. “Indian ports are not geared to handle large vessels,” he said.

But the potential import volume won’t be enough to absorb the total projected global surfeit. Morgan Stanley, which sees a global surplus of 79 million tonnes this year doubling to 158 million tonnes in 2015, expects the price to drop to $70.

In addition, any relief from Indian demand may be temporary, as the domestic shortage is due to government policy measures that could eventually be reversed.

Bureaucratic Route

For the present, resuming operations has been slow due to the long bureaucratic route to renew mining leases, said Mr Poddar.

Only 22 mines out of 122 that are eligible to restart in Karnataka have resumed operations, said Mr Poddar who owns Mineral Enterprises Ltd which has five mines in the state that have a combined capacity of 1.2 million tonnes but have remained shut. Mines in Goa have not reopened.

In Odisha, around a third of 56 iron ore mines are still closed and in Jharkhand, the third biggest producer in the past fiscal year, 12 out of 17 mines are shut.

India used to be the world’s No.3 iron ore exporter until higher costs along with the mining bans slashed shipments by 85 per cent, or 100 million tonnes, over the past two years.

Amid the shortage in local supply, iron ore prices in India are defying the global weakness.

In Odisha, 63 per cent grade iron ore would cost about $105 a tonne, including taxes and the royalty, to export, way above the current global market price of $67-$68, said Dhruv Goel, managing partner at industry consultancy SteelMint.

But miners make a profit of $15-$20 a tonne selling the same grade to local steelmakers, said Mr Goel.

“It is certainly profitable to sell in the domestic market.”

JSW STEEL BIDS FOR LUCCHINI'S ASSETS

Private steel giant JSW Steel confirmed that it is bidding for assets of Italy’s Lucchini plant. JSW is yet to receive a response to its bid. This USD 100 million deal will mark JSW’s entry into Europe. CNBC-TV18 broke this news three months ago.

Lucchini is Italy's second-largest steel plant by capacity. It was declared insolvent in 2012. The company is engaged in producing speciality long products like rolling mills manufacturing for European railways, bars for specialised auto industry and wire rod mills.

JSW INTERESTED IN BUYING ITALY'S ILVA STEEL PLANT - SOURCES

JSW Steel is considering buying the Ilva steel plant in Italy, union sources said on Thursday.

Ilva, privately-owned by the Riva family, is Europe's largest steel plant by output capacity and is of strategic importance to the southern European steel sector, where it supplies carmakers and other manufacturers.

The Taranto plant, however, is at the centre of an environmental scandal which led the Italian government to place it under "special administration", a procedure designed to save large companies and avoid big job losses.

JSW Steel, controlled by Sajjan Jindal wrote a letter to Ilva's special commissioner Piero Gnudi to express interest in Ilva, according to the sources.

A JSW delegation is expected to visit the plant, one of the largest employers in the southern Italian region of Puglia, in the next few days.

Ilva declined to comment.

JSW did not immediately reply to a request for comment.

ArcelorMittal, the world's largest steelmaker last month sent a letter to express its interest in Ilva to Gnudi and is expected to propose an industrial plan for the plant by the end of September, according to sources.

JSW is also in talks to buy parts of another steel plant, Lucchini, Italy's second-largest.

JSW STEEL PROMOTER HIKES STAKE IN COMPANY TO 4.74%

NEW DELHI: JSW Investments, a promoter group firm of JSW Steel, has increased stake in the company by 0.13 per cent to 4.74 per cent for nearly Rs 32 crore through open market transactions.

JSW Investments had 4.61 per cent stake or 11,14,55,761 shares in the steel maker before it started buying, the company said in a filing with BSE today.

JSW STEEL LAUNCHES NEW RETAIL FORMAT - JSW EXPLORE

Bangalore, 8 September 2014: With an aim to efficiently cater the customized steel needs of end consumer pan-India, JSW Steel, the flagship company of $11 billion Indian conglomerate JSW Group, launched its branded retail format - "JSW explore" in Bangalore.

The franchise-based authorized retail format will create a sustainable differentiator for JSW Steel’s exclusive value added products and service offerings. This win-win partnership shall further strengthen JSW’s bond with its committed JSW Shoppe channel partners taking the association to the next level.

Mr. Vinay Shroff, Sr. Vice President- Retail, JSW Steel said, “This new branded retail format will cater to end consumers requirements through value added products and services, initially in the construction sector. The branded format will be scaled up in future to cater to customised needs across product categories and sectors. viz, Hot Rolled, Cold Rolled, Colour Coated, TMT etc. It will sell superior quality products to brand conscious consumers at the retail level nurturing innovation and growth.”

The company has a unique strength in terms of reach to the customers, particularly in Retail segment. This initiative will further enhance its retail penetration.

The state of the art retail format adhering to JSW prescribed quality norms and processing standards will provide an opportunity for select channel partners to open and brand their processing facilities enhancing their capabilities to create a new benchmark in customer experience.

JSW STEEL FALL OVER 4% AFTER CBI ENQUIRY ON OFFICIALS

Shares of JSW Steel fell by over 4 percent in the backdrop of the CBI registering a Preliminary Enquiry (PE) against unknown officials of the company over alleged diversion of forest land for a mining project in Jharkhand.

Following this, JSW Steel's scrip lost 4.43 percent to Rs 1,180 on the BSE. On the NSE, it was down 4.32 percent to Rs 1,180.

The CBI had yesterday registered a PE against unknown officials of JSW Steel Private Limited and the Ministry of Environment and Forests over alleged diversion of forest land for a mining project in Jharkhand.

Sources in the CBI said the clearance for the project for mining in Ankua reserve forest was given in 2013.

The allegation made by the CBI in the PE was that unknown officials of JSW and the Ministry of Environment and Forests entered into a criminal conspiracy for getting approval for this mining activity.

A JSW spokesperson, when asked to comment on the CBI move, had said yesterday, "We are not aware of any such move nor have we received any official communication to this effect."

LOOKING FOR TRANSPARENT E-AUCTION OF COAL BLOCKS: JSW STEEL

JSW Steel has turned profitable in the quarter ended September 2014 and beat street expectations on all parameters. The company’s consolidated net profit stood at Rs 7487.000 Million during the quarter as against loss of Rs 1155.000 Million in the year-ago period. Consolidated total income from operations grew by 7 percent to Rs 138950.000 Million in July-September quarter compared to Rs 129840.000 Million in same quarter last year, even operating profit jumped 18.9 percent on yearly basis to Rs 27910.000 Million. In an interview to CNBC-TV18, Seshagiri Rao, joint MD & Group CFO of JSW Steel, discusses the company’s earnings and its future plans.

Below is the transcript of Seshagiri Rao’s interview with Kritika Saxena on CNBC-TV18.

Q: Will you participate in e-auctions?

A: Any steel company is looking for backward integration as a long-term strategy. So JSW Steel - even though we expanded our capacities based on backward integration, which has been committed both in terms of iron ore and coal by various governments in India, we have invested a huge amount of money in the steel sector. So we are very anxiously looking for a transparent policy where the steel companies, which are doing value addition, creating employment and contributing taxes to the exchequer, they should get the iron ore mining concessions and the coal concessions. So if they are available in a transparent manner in e-auction, I think JSW Steel will definitely participate.

Q: What is the conversation that you have with the government with respect to the coal block e-auction or rather what are the demands that you have put forth specifically, any option from their side that they have given with respect to concessions?

A: JSW Steel has got some coal concessions but even though they have not reached a stage where it is in operations but we have invested money in the coal mining concessions, which have been allotted to JSW Steel and its associates and subsidiaries. So as a policy, we have been advocating right from beginning that the coal or iron ore or any natural resource should be allocated in a transparent manner as long as there is a discretion that is given either to the state government or the central government, the problem remains that the real user is not getting the mining concessions. Therefore, I think we welcome the step of the government of India to do the auction of the coal mining concessions in a transparent manner. I think JSW Steel will definitely participate in that.

Q: In the race for pretty much most of the attractive assets available internationally or domestically, break it up for me, there is the Italian plant that you are looking at, actively what are the plants that you are looking at so far, how much would you be open to spending for that?

A: Today, generally what is happening any acquisition which is there in the steel sector, JSW Steel name is attributed to that but we have been clarifying from time to time that JSW Steel strategy is to backward and forward integration and we continue to expand our capacities in India. First through Brownfield expansion and balance through either inorganic growth or through Greenfield expansions, so we are sticking to that. We have been continuously scanning various opportunities either forward or backward. Unless it is value accretive and it gives the long-term benefits to the company and the stakeholders, I don’t think we will go and do the acquisitions just like that. So we are very careful in acquisitions. Therefore I don’t want to comment any specific target right now. Once it matures to a stage where we can share, definitely we will share the information.

Q: This would be largely international that you are looking at or are there domestic assets that you are also exploring. If yes, what areas? If you could tell me the areas that you need to fit the company’s strategy?

A: Even in India or overseas, we are looking at backward and forward but India there are opportunities today because of the stress in the steel sector for inorganic growth, the way we have done Ispat industries and turned around and managed with JSW Steel today. So there are opportunities in India also in the steel sector. So we continue to evaluate those options but only one very important point as per inorganic growth in India is concerned, we are able to set up capacities at a very low specific investment cost per tonne. We can set up a million tonne capacity in the steel sector by investing only Rs 30000.000 Million whereas today, the companies which have invested in the steel sector for creating capacity is close to Rs 6,0000.000-70000.000 Million or even Rs 80000.000 Million. So that is too expensive for us to do any inorganic growth acquisitions. Therefore it should be attractive and they should fit in our strategy then definitely we will continue to look at even in India the inorganic growth opportunities.

JSW STEEL IN ADVANCED STAGES OF ACQUIRING LONDON MINING

NEW DELHI: Set to expand its global footprint, the country's third-largest steelmaker JSW Steel is close to acquiring embattled West African iron ore miner London Mining in a bid to secure raw material for its plant.

"JSW Steel is very close to finalising a deal to acquire London Mining which is battling big debts amid crashing iron-ore prices and the Ebola outbreak in Africa, where it operates a mine," a source privy to the information said.

The announcement of acquisition may be made on October 21 along with the financial results, the source said without divulging details of the deal or financial considerations.

Queries sent to the company about any possible acquisition of London Mining remained unanswered.

However, the Sajjan Jindal-led firm last week had said that it is open to expansions through acquisitions besides augmenting present capacities.

The statement had followed reports that the steel major is in advanced stages of acquiring London Mining.

"As a long term strategy, we would like to expand both organically by means of brownfield and greenfield expansions and inorganically by acquiring some existing assets," the company had said in a filing to the BSE.

It had said that the company kept on scanning suitable opportunities, which have a strategic fit.

The debt-ridden UK-firm London Mining operates a small mine in Sierra Leone producing high grade iron-ore but is expensive to run. Sierra Leone is one of the worst-affected African nations by the ebola pandemic.

JSW Steel is about $ 9 billion global conglomerate spread over six locations in India and a footprint that extends to the US, South America and Africa.

The flagship company of about $ 11 billion JSW Group, JSW Steel has steel plants in Karnataka, Tamil Nadu and Maharashtra with a combined installed capacity of 14.3 million tonnes per annum (MTPA) which it plans to take to 40 MTPA in the next decade.

Set to foray into European market with the acquisition of an Italian steel firm, JSW Steel has on its radar a handful of potential companies for takeover both in the space of steel making as well as raw material.

Last month Sajjan Jindal had said there are many such units which are potential takeover targets, adding, "We are looking at iron ore assets all over -- in Australia, Africa, North America and South America."

'MAKE IN INDIA' PUSH TO DEPEND ON CHINESE STEEL

India's steel consumption is expected to grow at its fastest pace in five years next year on Prime Minister Narendra Modi's infrastructure push, but a scarcity of raw materials means it will be at the expense of another key goal - curbing imports.

In his triumphant election campaign, Modi criticised the last government for exporting iron ore but importing steel. But his first five months as the prime minister has coincided with a surge in imports of both, denting his high-decibel drive to make India an export powerhouse.

India's steel imports from China, the world's biggest producer of the alloy, doubled in April-September from a year ago though the country has enough capacity to meet its demand.

While India's consumption is expected to rise, China will continue to see a downtrend, likely leading to a flood of cheap steel from China just as Modi pushes ahead with a signature 'Make in India' initiative to boost industry.

Charged by the strongest electoral mandate in three decades, Modi has staked his reputation on making India an export hub, launching his pet campaign with much fanfare in September with a lion as its logo.

Soaring steel imports, however, underscore the challenges Modi faces in realising his dream. Steelmakers, such as JSW, are clamouring for higher import tariffs.

"The 'Make in India' slogan has to be true for steel also," said Ravinder Bhan, deputy general manager of marketing at state-owned Steel Authority of India. "Let steel firms get iron ore and other raw materials. But that's not happening."

India, Asia's third-largest economy, has become a major importer of iron ore and coal despite having big reserves of both at home. Once a top exporter, India is now bringing in shiploads of iron ore due to court action against illegal mining that has stifled supply, while coal behemoth Coal India is struggling to boost production.

The shortages mean that India's steel industry is running at 80 percent of capacity. But the World Steel Association expects Modi's pro-business plans - building 100 new 'smart' cities, creating new logistic hubs and residential townships - to spur steel demand that has been weak in recent years.

CHINA IMPORTS JUMP

World Steel expects India's demand to rise 3.4 percent to 76.2 million tonnes in 2014, after growth of 1.8 percent in 2013. Structural reforms and improving confidence will support a further 6 percent growth in 2015, it said.

Indian steelmakers such as JSW, Tata Steel and Jindal Steel and Power Ltd, however, run the risk of being priced out by their Chinese competitors.

"The global market is such that the only thing that you can do is take some protective action to save the (Indian) industry," said A.S. Firoz, chief economist at a Steel Ministry unit. "Otherwise you can't decide what the global prices will be or at what price China will export steel."

A Steel Ministry spokesman said he had no immediate comment on whether authorities would consider raising tariffs, although a government official who spoke on condition of anonymity said the issue was being looked into.

China, the world's largest steel producer, rolls more steel in a month than India, the fourth largest producer, manages in nine months. But a slowdown in China means it is set to end with a surplus of about 100 million tonnes a year.

"MADE OUTSIDE INDIA"

A tonne of reinforcement steel produced in India for use in buildings can cost up to 15,000 rupees ($244) more than that from China, according to Firoz.

Shipments into India jumped 33 percent to 4.19 million tonnes in April-September from a year ago, with imports from China leaping 108 percent to 1.34 million tonnes. Total steel imports in the fiscal year to next March 31 could nearly double to 9 million tonnes, JSW predicts.

"Through 'Make in India', Modi is saying that India should be the hub for the rest of the world and of course to meet our full demand," said N.C. Mathur, president of the Indian Stainless Steel Development Association.

"Instead something made outside India is coming into the country. That's a big threat. It's a week after week, month after month survival issue."

JSW PLANS TO RAISE USD 500 MN TO PART-REFINANCE RUPEE DEBT

With the aim to refinance a part of its rupee debt, JSW Steel is planning to raise USD 500 million through a bond sale to investors in Asia and Europe, investment banking sources said.

The roadshows for the bond sale would start next week and the company representatives would visit Singapore, Hong Kong and London to woo investors, they added.

Confirming the schedule of the roadshows, JSW Steel's Joint Managing Director and Group CFO M V S Seshagiri Rao told PTI that the proposed bond sale was aimed at refinancing part of the rupee debt and aimed at reducing the interest outgo.

He, however, did not confirm the amount, tenor and timing of the bond, saying the call would be taken on the movement of the market which is "a little stable" now.

JSW Steel has Rs 357500.000 Million net debt out of which 35 percent is in foreign currency.

In a statement to the stock exchanges, JSW Steel said it "is contemplating issuing of debt instruments in the form of US Dollar denominated senior notes. The notes, if issued, will be listed on the Singapore Stock Exchange."

"A preliminary offering circular has been prepared and shall be made available to prospective investors in relation to the contemplated issue of notes. The notes will not be offered or sold in India or in the US," JSW Steel added.

Meanwhile, the company has been assigned Ba 1 rating with stable outlook by Moody's and BB+ rating with stable outlook by Fitch.

Moody's said JSW Steel's Ba1 rating reflects its large scale and competitive conversion costs and its track record of managing growth, both organic and by acquisition, while at the same time controlling consolidated leverage to moderate levels relative to its steel industry peers.

Fitch assigned JSW Steel a senior unsecured rating of 'BB+' and the company's proposed US dollar denominated notes an expected rating of 'BB+'.

Fitch said JSW Steel benefits from its low cost base due to its low conversion costs. It's efficient operations were reflected in its strong profitability, with EBITDA margin of 17.9 percent in FY'14.

The rating agency expects JSW Steel's profitability to remain strong over the medium term because it would continue initiatives to reduce costs.

JSW STEEL FALL OVER 4% AFTER CBI ENQUIRY ON OFFICIALS

Following this, JSW Steel's scrip lost 4.43 percent to Rs 1,180 on the BSE. On the NSE, it was down 4.32 percent to Rs 1,180.

Sources in the CBI said the clearance for the project for mining in Ankua reserve forest was given in 2013.

A JSW spokesperson, when asked to comment on the CBI move, had said yesterday, "We are not aware of any such move nor have we received any official communication to this effect."

JSW STEEL IN MEDIA NEWS

JSW STEEL CUTS PRICES IN FACE OF CHEAP IMPORTS

The Economic Times, 1 Oct 2014

JSW Steel, one of India's largest steelmakers, cut prices by up to Rs. 1,000 per tonne to thwart increasing imports from China as global raw material prices slide amid weak demand.

JSW Steel cut flat steel prices in the range of Rs. 500-750 per tonne and long steel prices by Rs. 1,000 per tonne. This is likely to hurt margins of the company, which makes Rs. 8,500 per tonne at operating level` Globally, iron ore and coking coal prices have been on a decline with demand faltering in China. Oversupply of both iron ore and coal has also led to weak prices of the commodities. In the absence of strong demand, global steel prices have also tumbled along with falling raw material prices.

These weak global prices are obviously putting a pressure on domestic steelmakers to cut prices in order to compete with imports, even though iron ore prices are firm domestically on the back of supply constraints. "We are forced to cut prices. The issue is that demand is sluggish. On top of that, heavy imports are coming into the country," said Jayant Acharya, director (commercial & marketing) at JSW Steel. "China is one of the main countries exporting to India. It is troubling many other countries too."

Other steelmakers are likely to follow JSW's move.

JSW Steel mainly produces flat steel, which is used in cars and consumer durables. Acharya also said that Chinese steel producers are dumping cheap alloy steel in the name of TMT steel bars to evade taxes back in their country. TMT steel bars are used in construction and infrastructure.

JSW Steel complained that while global iron ore prices are falling, prices of the same commodity has actually risen in India due to scarcity and hike in government royalty. "If India wants to push manufacturing and create jobs, the government should make sure India does not become a dumping ground," Acharya said.

JSW STEEL, CEVITAL SUBMIT FINAL BIDS FOR ASSETS OF ITALY'S LUCCHINI

NEW DELHI: Having placed its binding offer to acquire Lucchini's core assets, JSW Steel BSE -0.04 % is now waiting to hear from the Italian steel-maker for making a foray into the European market.

"We have placed the binding bid to acquire the finishing lines of Lucchini more than a month ago. Now, they have to get back to us," JSW Steel's Joint Managing Director and Group CFO Seshagiri Rao told PTI.

Rao, however, did not divulge the details of the bid. JSW Steel Chairman and Managing Director Sajjan Jindal had earlier said the cost of Lucchini acquisition would be sub-USD 100 million.

JSW Steel, which has been on an acquisition spree in the recent times, intends to use the 1.3 million tonnes per annum finishing line of Lucchini for processing steels manufactured in its facilities in India for sale in the European market.

An Algerian steel maker is also reportedly in the race. Lucchini, Italy's second-largest steel plant by capacity, was declared insolvent in 2012 and placed under special administration after plunge in European demand for steel since 2008.

It is engaged in producing speciality long products like rolling mills manufacturing for European railways, bars for specialised auto industry and wire rod mills.

JSW Steel's interest on acquiring Lucchini stems from its aim of having an overall steel capacity to 40 mtpa by 2025 from 14.3 mtpa now.

Apart from acquiring a couple of assets in recent times, the company proposes to raise capacity of its Bellary plant in Karantaka by six mtpa to 16 mtpa.

JSW STEEL DEFERS ITALIAN STEEL CO ACQUISITION

JSW Steel Ltd, the third largest Indian steel maker, today said it has deferred the proposed acquisition of Italy'sLucchini SpV.

"For the time being, plans for India is much stronger and larger. We want to focus in India.... We have deferred our decision to invest in the Italian project," JSW Steel chairman and managing director Sajjan Jindal said.

He was speaking on the sidelines of inauguration of Ispat Pragati Bhawan, the new office of Institute of Steel Development & Growth (Insdag) in the city.

In September, Jindal had told reporters that JSW has offered less than $100 million for three mills of the insolvent Lucchini and it was in a position to win it.

The company recently also gave a clarification in the bourses saying, "In line with our long-term strategy to acquire finishing mills near to the market, we have submitted a binding bid for takeover of Rolling Mills of the Piombini Plant of Lucchini in Italy subject to certain terms and conditions. We are yet to get the response on this bid."

Lucchini, with a steel capacity of about 2.5 mt, was owned by Russia's Severstal but had to be declared insolvent in 2012 following which the government placed it under special administration and started the process to find buyers.

JSW currently has a total installed steel making capacity of 14.3 million tonnes in India.

INDIA IRON ORE IMPORTS HIT RECORD 6.8 MT AS PRICES FALL

India's iron ore imports rose to a record 6.76 million tonnes in the first seven months of its fiscal year as sliding global prices and limited supply at home pushed steel producers to buy the raw material overseas, industry data showed on Friday.

Formerly the world's No. 3 supplier of iron ore, India has been importing over the last two years due to court-imposed restrictions aimed at curbing illegal mining in the key producing states of Karnataka and Goa.

The shortage deepened this year as some mines in the states of Odisha and Jharkhand were ordered closed after the expiry of licences.

But analysts say India is unlikely to absorb a big chunk of the global surplus that has halved iron ore prices this year.

Global seaborne iron ore supply will grow by around 330 million tonnes over the next three years, far outpacing demand that will rise by just 194 million tonnes in the same period, Morgan Stanley said in October.

JSW Steel, India's third largest steel producer, imported 4.6 million tonnes of iron ore in April-November, followed by Tata Steel with nearly 1 million tonnes, according to data from industry consultancy SteelMint, which tracked shipments at 12 ports.

"Looking at the current scenario, it does not look like mining will resume soon in Odisha and Jharkhand. Imports are expected to hit 11-12 million tonnes this financial year," said Dhruv Goel, managing partner at SteelMint.

JSW said in September it was planning to import 10 million tonnes or more this fiscal year if the domestic shortage continued and prices stayed low.

The company this week put on hold plans to build a steel plant in eastern India due to uncertainty in sourcing iron ore and coal.

South Africa was the top source of iron ore imports, accounting for 40 percent of the April-November volume, with Australia supplying 15 per cent of the total.

Official Indian government data only covers April-August, with imports totalling 2 million tonnes.

Increased output of iron ore from top producers Australia and Brazil has helped widen a global glut at a time of slower economic growth in China which buys around two-thirds of seaborne supply.

Iron ore has fallen 47 per cent this year, touching $68 a tonne last week, its weakest since June 2009.

'GOVT FAVOURS AUCTION ROUTE FOR MINES ALLOCATION'

The Centre appears to be in favour of auction route for allocation of mines as has been earlier proposed in the draft MMDR Bill, which it intends to bring in the ongoing session of Parliament for passage.

"Based on discussions, I think that Mines Ministry has decided to take the auction route for allocation of mines even as some industry representatives voiced their reservations," a source present in a deliberation with Mines Minister NarendraSingh Tomar said today.

The minister held deliberations with representatives of miners, end-users and other stakeholders on the draft Mines and Minerals (Development and Regulation) (Amendment) Bill, 2014, seeking inputs, feedback and suggestions on omission and commission in the proposed Bill.

Apart from industry bodies such as Ficci and Assocham, captains of steel industry like T V Narendran of Tata Steel, C S Verma of SAIL, Sajjan Jindal of JSW Steel and Naveen Jindalof JSPL took part in the deliberation.

An official release, following the discussions, said Tomar stated that the auction route suggested in the proposed Bill had been included after active discussions and inputs from the state governments.

The proposed auction route has already had its share of criticism from Federation of Indian Mineral Industries (FIMI). It said auctioning of mines as proposed in the draft Bill will sound the death knell of the industry. It has also written to the Prime Minister Narendra Modi airing its apprehension.

Contending that the auction route was not pursued in any resource-rich country, FIMI said, they follow the time-tested principle of 'first-cum-first-served'.

Tomar also emphasised that the objective of the Bill was to kick-start the mining sector by removing bottlenecks that are preventing the industry from becoming a growth-multiplier in the country.

Government was working towards bringing in transparency in the systems, ensuring fair share of value for government and creating an investor-friendly environment in the mining industry, he added.

"Government's intention is to bring the Bill in the ongoing session of Parliament," the statement said.

JSW STEEL SAYS WILL CONTINUE TO WORK WITH WEST BENGAL TO IMPLEMENT SUSPENDED PROJECT

MUMBAI: JSW Steel said it would continue to work with the West Bengal government to find alternatives to establishraw material linkages so as to implement its long-delayed steel project in the state.

The Sajjan Jindal-led company decided to return 294 acres of land it acquired for the project to farmers at no cost after it was unable to secure iron ore and coal linkages to its proposed steelmaking factory.

"At this backdrop, financing a capital-intensive greenfield project will be very challenging. Consequently, the company decided to put the project implementation on hold until raw material linkages for the project are reliably established," it said in a statement.

The 10-million tonne project has been on hold since 2007. The company had planned an investment of Rs 35,000 crore.

JSW STEEL IS BACK TO INCREMENTAL GROWTH STRATEGY

When billionaire Sajjan Jindal put his plan to build a 10 million tonne (mt) greenfield steel plant at Salboni in West Bengal on hold, he knew he had a back up to protect his growth ambitions.

JSW Steel is the largest private sector steel maker in the country with 14.3 mt capacity. It reached this position on the strength of turning around sick units and by growing incrementally.

“For JSW Steel incremental growth strategy has worked better than a big bang approach and this is what they are getting back to when the plans for greenfield projects are not working out,” says an analyst with an international brokerage who didnot want to identified.

The company that started with a single steel plant in 1982 never had captive raw material such as iron ore and coking coal. It always sourced it from domestic and international producers. JSW planned its greenfield plants close to raw material sources expecting allocation of mines. But that attempt has so far not been successful.

Its plan to set up another greenfield plant of 10 mt in Jharkhand has also not taken off in the absence of security of raw material.

However, this has not deterred the company to scale down its ambition to reach 40 mt capacity by 2025 as it is ready with alternatives. To compensate for the greenfield plants, the company now plans to double the capacity of its Vijaynagar plant in Karnataka to 20 mt by 2022, through brown field expansion.

“Given the hugely constrained domestic iron ore scenario, JSW Steel has resorted to large scale imports. Any relaxation in iron ore availability will be a further positive for the company,” said Ankur Kulshrestha, analyst with HDFC Securities.

“It is also envisaging a slurry pipeline from Jaigarh (Goa) to Vijayanagar plant to de-risk from domestic iron ore concerns,” he said. The 500 km long slurry pipeline will come at a cost of Rs 2,000 crore, but it would address the constraint of iron ore for expansion at Vijaynagar.

The company is also discreetly working on another brown field expansion plan at Dolvi in Maharashtra. It acquired 3.3 mt plant of Ispat Industries in 2010 for Rs 21570.000 Million. Since then it has turned around the loss making unit and now it is expanding it to 5 mt capacity. This expansion is expected to be completed early next year.

But Sajjan Jindal has a much bigger plan for Dolvi. He plans to make it a mega complex with 15 million tonne capacity. The company has already started working on this, and acquired a sponge iron facility of Welspun Maxsteel in August. This facility is very close to the existing steel plant of the company at Dolvi and has a large land parcel and a private jetty attached to it. The acquisition has synergy in terms of supplying surplus pellets to WMSL and use of direct reduced iron from this plant for steel making operations.

But beyond this, the proximity of these two plants means it could be developed into a huge plant complex. And the jetty can help in transportation of raw material. The company has already applied to the environment ministry for clearance to increase the capacity of Dolvi plant to 10 mt from 5 mt. So if the plan for green field expansion in Jharkhand does not work out, the company knows how to compensate it to meet its growth ambition.

The company has another 1 mt capacity plant at Salem in Tamil Nadu, which is another example of the company turning around sick units. It acquired 0.3 mt capacity from Southern Iron and Steel Company in 2004 when it was a loss making unit.

With this, the company comes close to achieving 36 million tonne, a striking distance from the ambition to achieve 40 million tonne capacity by 2025. Addition of another 4 million tonne capacity for the billionaire promoter will not be tough as it keeps the route for inorganic growth open.

JSW STEEL OFFERS TO RETURN LAND AS A GOODWILL GESTURE

Two days after Chief Minister Mamata Banerjee announced the return of a parcel of land that JSW Steel had acquired directly from farmers in West Bengal, the company said that it had offered to return land voluntarily as a goodwill gesture.

In a filing on the stock exchanges this morning, the company reiterated its commitment to the project saying that it will continue to work with the State government to find alternatives to establish raw material linkages so as to take up the project’s implementation in due course.

Making its first official statement on the land return, JSW said that considering the hardship of the erstwhile landowners the company decided to give up "equivalent land out of the total project land “( of 4268 acres) “ to original owners free of cost as a gesture of goodwill through state government as per applicable laws.”

Ms. Banerjee had announced the group’s decision to return land on Tuesday saying that the Jindals were doing this as a "token of respect to the farmers who had given their land.” Ms Banerjee had raised the pitch on land-return in June, after inaugurating another project at Salboni, once a hot-bed of ultra left extremism in the state.

The development opened a new chapter in industry-government `bonhomie’. However there were reports that the industry group was cajoled into this decision by the government which too was looking for face savers in the wake of growing agitation by the land losers who were promised jobs at the new project as well as equity shares of the new company.

Industry-watchers contrasted the development with the Singur imbroglio, where the entire matter is deadlocked over the issue of returning 400 acres to farmers described as unwilling (to part with their land), by Ms Banerjee and her party.

Ms. Banerjee said on Monday that land-return at Salboni was the first step. In the second step they will decide what to do with the balance land which is vested government land. The project is on hold now and industry experts felt that the development does not send a very positive message to prospective investors.

JSW said on Wednesday that its proposed 10 million ton green field steel plant had made good progress in land acquisition, site development and coal mine exploration but had stumbled on iron ore linkages in wake of ban on mining of the mineral. The recent cancellation of coal block allocation further clouded the project’s prospect. In view of the difficulties in bank-rolling such a project, JSW decided to put it on hold the company said.

Total iron ore production in FY 15 Seen sub-105 MT: JSW

Currency devalution has been putting pressure on global steel prices, says Seshagiri Rao, Joint MD & Group CFO of JSW Steel, adding that domestic prices, which have corrected 5-6 percent in Q3, fell in line with international prices. He however feels stability is coming back and further corrections are unlikely. The company’s current annual coking coal requirement stands at 7-8 million tonnes. Rao feels sourcing coking coal locally will reduce operational cost. He however, feels that the state of iron ore production is worrisome. “There is hope that more production will come into operation, but nothing has been happening on the ground. This is leading to an increase in imports. This year around 10-15 million tonnes of iron ore has been imported, which is a matter of concern,” he said. With domestic steel industry not getting adequate iron ore to produce, he expects total iron ore production for FY15 to be sub-105 million tonnes against against 135 million tonne last year.

Stable profit outlook for JSW Steel

Ujjval Jauhari | Mumbai Sep 18, 2014 10:46 PM IST

The market’s nervousness over mining issues is evident from the volatility in metal and mining stocks, some of which have fallen as much as 25 per cent in the past two months. Nevertheless, JSW Steel continues trading firm and, at Rs 0.001,336 (up seven per cent), is near its 52-week high of Rs 1,365.35, seen this month.

While the company does not face risks on the profitability front, unlike many of its peers, its sales continue to increase, rising 12-13 per cent in the first five months of this financial year. Also, while the acquisition of Maxsteel assets in August bodes well, talks to acquire the facilities of Italian steelmaker Lucchini are being looked at positively. The timing of such expansion is opportune, as these come at reasonable valuations and are seen adding to JSW’s profitability.

Analysts say in this backdrop, JSW remains the preferred pick in the steel segment. The consensus target price for the stock, according to analysts polled by Bloomberg in September, is Rs 1,463, though some analysts also have target prices as high as Rs 1,647.

Strong profitability outlook

While most leading steel makers are facing profitability risks due to concerns about coal blocks and recent iron ore mining issues in Jharkhand, this isn’t the case with JSW Steel.

Coal block issues have hurt investor sentiment. For instance, Jindal Steel and Power faces the risks of profitability plummeting in the event of adverse decisions on its coal blocks. Analysts at Jefferies feel return on capital employed on its investment in the 2.5-million-tonne (mt) steel plant and 810-Mw captive power plant at Angul, Odisha, are likely to be low in the absence of captive coal from the Utkal B1 coal block.

For Tata Steel and SAIL, the rise in royalty on iron ore mining and some mines in Jharkhand seeing mining restrictions don’t bode well. Analysts at Motilal Oswal estimate Tata Steel and SAIL’s earnings before interest, tax, depreciation and amortisation (Ebitda) per tonne taking a hit of Rs 5,940 and Rs 6,400, respectively, post the captive iron-ore mine closures. They add for every Rs 1,000 fall in Ebitda per tonne, the target price of Tata Steel and SAIL will be impacted by 10 per cent and 20 per cent, respectively. Non-integrated steel producers as JSW Steel might not see significant pressure on margins, as cheaper iron ore and coking coal will mean reduced costs for them. For JSW, which is expected to import 25 per cent of its requirement, declining global iron ore prices will mean additional gains. Currently, global prices stand at about $80 a tonne.

Acquisitions to give boost

After acquiring smaller rival Welspun Maxsteel for about Rs 1,100 crore in August, JSW Steel is now eyeing the facilities of Italy-based Lucchini. The Maxsteel acquisition was thought to be a good move, one that would not only improve profitability at the Dolvi plant (acquired from Ispat), but also increase JSW’s presence in the northern and western markets. The facilities included a 900,000-tonnes-per-annum (TPA), gas-based direct reduced iron (DRI) plant, a captive jetty, railway siding, and vacant land of 480 acres. Analysts say JSW Steel will send pellets from the recently commissioned four million TPA Dolvi plant (to Maxsteel’s facilities) to substitute expensive imports and transport DRI back to Dolvi for use in Conarc furnaces for steel-making.

JSW Steel has also bid for three Piombino-based facilities of Lucchini, declared insolvent in 2012 and placed under special administration. JSW’s move is a positive, says Goutam Chakraborty at Emkay Global. He feels while valuations are cheap (deal value estimated at sub-$100 million, or about Rs 600 crore), the company can turn around the unit and use the facilities to manufacture value-added products.

The only risk on the profitability front is posed by domestic steel prices. International steel prices remain low, alleviating the threat of imports. The demand growth during April-August, too, has been tepid. But with increasing automobile sales and an expected pick-up in construction activity, there is optimism demand will improve.

Mineral-based projects will get sorted in 2 yrs: JSW Steel

The new Narendra Modi government is doing a lot to make it easier to do business in the country. But it has miles to go before India's ranking in this area improves significantly. That's the word from captains of Indian industry including Sajjan Jindal, Dilip Shanghvi and Tulsi Tanti, who together command a market capitalisation of nearly Rs 5 lakh crore.

However, speaking at a conference on how to build a new India organised by Antique, these captains agreed that the government's efforts would not amount to much unless corporate India pitched in.

Here's a list of areas the industry bigwigs believe have seen some progress, and some areas where a lot still needs to be done.

Sajjan Jindal, Chairman & MD, JSW Steel - On govt boosting industry confidence

Prop up the confidence level that we are with you, we want to support you, we want industry, we want manufacturing and that is what this government has done - whether it is the Prime Minister or his colleagues -they are giving this confidence back to the investor community and that is the first very important step.

In the UPA-II where we suffered, there was no clarity of thought whether the government wanted projects to happen. One wing or one arm was saying we have to move forward and the other one was saying no we have to go back.

This government is putting all these things into order. Similarly on the ordinances that they issued on iron-ore and mining minerals, it has become very clear that now it will be through the auction route, through a transparent route. So, I think over the next two years my belief is that all these large projects which are mineral based will get sorted out.

Ashwin Dani, VC & MD, Asian Paints - On demand on the ground

Signals are very clear that on the ground demand is yet to pick up and until the demand really picks up I think the consumer industry is still not feeling the positive vibes that we see in the environment.

Dilip Shanghvi, Founder, Sun Pharma - On employable and skilled youth

We see that availability of graduates from college who are employable is limited. So, typically most of the people that we hire they go through an extensive training programme .So, I think the important focus before we can become a supplier of products globally is to look at education and create capacity in our education system to generate employable youth.

On the other side, you have industry problem of not getting enough people of the skill that they require. We have to find a way to bridge this because manufacturing unlike services require specific skills and capability for us to succeed and to be able to compete globally. The other issue is the issue of innovation for our business. Philosophically, as a country we have never given premium for original thinking. It is easier to copy, safer to copy because you have less risk of failure.

Sajjan Jindal, Chairman & MD, JSW Steel - On dumping

We don't have very quick redressal system on dumping. So when, for example lets take an example of Russia and Ukraine where their currencies have crashed by nearly 100 percent they have become double of what it used to be. Demand within Russia and Ukraine has collapsed. So, they are now dumping steel into India. Our government does not have a very quick mechanism or even the industry is not prepared to apply to the government to take a very quick action on this redressal to bring in countervailing duties or bringing in anti-dumping or safeguard duties. So, now the industry is working together to create this concept. We are already in discussion with the government.

Dilip Shanghvi, Founder, Sun Pharma - On R&D

I think there are lot of bureaucratic restrictions in research. So, for doing animal experiments, for import of large animals, for doing lets say phase 1, phase 2 studies, human studies, lets say when you are doing clinical trial for cancer drug. So there would be some deaths in clinical trial possibly because of the drug, the number of deaths would be lower than it would have been otherwise if they were not treated. However, the regulatory process that is now in place for any company to do clinical trial in India and the kind of responsibility on the sponsor for any kind of potential - say like normally in India you can't do a placebo control study. Globally you can do placebo control study. So, large number of unrealistic restrictions prevent the industry to be able to invest in research.

Tulsi Tanti, Chairman & MD, Suzlon Group - On policy initiative and target versus momentum

Two, three policy initiatives already government has taken which has accelerated investment into the industry. However, when we see the size of the target versus the momentum it is not good enough.

200 gigawatt target and even countries future requirement, 30 percent energy we have home resources – green and solar. Huge potential is there. We have technology within the country. We are exporting technology to developed economies also. More focus is required on financeable PPA and security of the payment. That is the key bottleneck to unlock the size of the market.

JSW's Bengal project on 'hold'

JSW Steel has put its West Bengal steel and power plant on 'hold' over uncertainty of raw material linkages for the proposed Rs 35,000 crore project.

"We have put the project on hold. Without both raw material (coal and iron-ore) it is very difficult to go ahead with the project," JSW Steel Chairman and Managing Director Sajjan Jindal said here today on the sidelines of inauguration of Ispat Pragati Bhavan of Insdag.

He said as JSW Bengal has already invested Rs 7000.000 Million into the project at Salboni, in West Midnapur, it was keen about the project but given the unclear situation about coal and iron-ore it was not practical to go ahead with the project.

JSW Bengal currently do not have either coal or iron-ore linkages for the Salboni project. However, Jindal said they will bid for the three coal mines, if put on auction, which were offered by the West Bengal government agencies for the proposed 10 million tonne integrated steel plant.

Asked whether JSW will go ahead with the power project in case it won back the coal mines, Jindal said everything will be looked afresh and definitely "We have hope and desire to build industry here (Bengal)."

He says even Bellary's plant situation is better as it has atleast 50 per cent of iron-ore linkages and setting up a slurry pipeline to pump imported iron-ore into plant was not feasible. JSW was awaiting "minor changes" in its agreement with the West Bengal government before kick-starting construction at its 600 MW power plant at Salboni.

JSW had proposed to sell power to state utilities to the tune of 60 per cent of the generation capacity but West Bengal government had scrapped the power purchase agreement. The other demand was to change in agreement to allow use of captive coal for power generation.

NMDC slashes iron ore prices

In a relief to major domestic steel firms, state-run iron ore miner NMDC has reduced price of lumps by Rs 200 a tonne and Rs 100 per tonne for fines for the current month on tumbling global prices and lower demand.

NMDC, India's largest iron ore producer, had reduced the price for lumps by Rs 200 per tonne in November. It, however, did not change the price for fines last month.

Following the reduction, the price of lump ore, which has more iron content and is used mostly by domestic steel makers, now stands at Rs 4,200 per tonne. The prices of fines, having less content of iron or the inferior grade, now comes down to Rs 3,060 per tonne.

The miner reviews the prices of the key steel-making raw material every month going by the global prices and domestic demand, had not tweaked rates during the July-October period.

Global iron ore prices have nosedived to five-year low at around USD 70 per tonne mainly because of subdued demand from China, the largest producer of steel in the world. The holding on of the price by NMDC during the four-month period coupled with inadequate availability within the country have forced JSW Steel, a major customer of NMDC, to import the raw material. Essar Steel also buys large quantity of iron ore from NMDC.

The price cut, which might be followed by other miners, would benefit domestic steel firms which are now in a precarious situation now with rising imports from China, Japan and Korea. The price cut could help them to better their margins.

The demand for iron ore has also come down in line with the fall in steel production. NMDC's sales in October actually fell from the previous month even as its sales in first seven months of current fiscal rose to 17.65 million tonnes against 16.03 MT during the corresponding period last year.

Domestic crude steel production also declined by 0.5 percent in October, 2014 from the immediate past month, mainly by a decline of 0.9 percent in production by major producers and a 0.1 percent decline in production by non-major producers.

The price cut might impact NMDC's net sales realisation a little during the current quarter, although it is confident of imporving the bottom-line for the entire fiscal.

NMDC had clocked Rs 64200.000 Million net profit in the 2013-14 fiscal. In the first two quarters of the current fiscal, it has reported Rs 3,482 crore. The company also hopes to improve its sales volume to around 32 million tonnes for the current fiscal.

India's steel consumption grows by 1.3% in Apr-Nov

India's steel consumption grew by a moderate 1.3 per cent to 48.62 million tonnes during the April-November period of current fiscal on lingering effect of the economic slowdown and slow growth in production.

The country, the world's fourth largest steel producer, had consumed 48 MT steel in the corresponding period of the last fiscal, Joint Plant Committee (JPC), a unit under Steel Ministry, said today.

"The slow growth numbers appear to reflect the lingering effect of the economic slowdown and is further depressed by the slow growth in production for sale in April-November, 2014 as compared to the same period of last year," it said in a note sent to the Ministry.

Domestic real consumption of steel in November 2014 at 5.488 MT was down by 9 per cent compared to October. Year-on-year, it increased by 8 per cent, it said.

Production of crude steel during April-November period of the current fiscal was higher by 2.5 per cent at 55.29 MT to which main producers SAIL, RINL, Tata Steel, Essar, JSW and & JSPL together contributed 29.769 MT. The rest produced 25.52 MT during the period.

The production in November at 6.81 MT was higher by 3.5 per cent over the same month last year.

Export of total finished steel was down by 5.3 per cent during the first eight months of the current fiscal at 3.5 MT over the same period last year.

Also Read: WTO issues mixed ruling in Indian challenge on steel duties

Imports, however, zoomed to 5.5 MT, a 49 per cent growth during the April-November period. "India remained a net importer of total finished steel in April-November, 2014," JPC said.

JSW Steel in talks to buy Bhushan Steel's Odisha plant

Mail Today Bureau New Delhi Last Updated: December 2, 2014 | 08:26 IST

Sajjan Jindal-controlled JSW Steel is reported to be in talks to acquire Bhushan Steel 's Odisha plant and also looking at picking up the company's stake in Orissa Sponge Iron and Steel Limited.

The total value of the deal could be around Rs 300000.00 Million, according to banking sources.

The move is reported to have been initiated by the consortium of banks that have lent money to Bhushan Steel, which has a total debt of around Rs 350000.000 Million on its books. Bhushan Steel has been asked by the banks to sell its Odisha steel plant, which has a capacity of 5.6 million tonnes per annum.

However, promoters of Bhushan Steel have been trying to find ways of bringing down the Odisha unit is up for sale.

Bhushan Steel had informed the Bombay Stock Exchange recently that the Board of Directors at its meeting held on November 14 inter alia approved the draft notice of postal ballot for passing special resolutions for payment of managerial remuneration, appointment of Ajoy Kumar Deb nominated as nominee director by the State Bank of India (SBI) and accepted the resignation of Sushant Jain as independent additional director.

Sources pointed out that this reflects that the banks are strengthening their control over running the company. JSW Steel neither confirmed or denied the move. "We do not want to comment on market rumour or speculation," a JSW spokesman told Mail Today.

Bhushan Energy has about 15 per cent stake in Orissa Sponge, in which Monnet Ispat holds 41-per cent stake. JSW Steel has put its West Bengal steel and power plant on hold due to uncertainty of raw material linkages for the proposed Rs 35,000-crore project. JSW Bengal has already invested Rs 700 crore in the project, at Salboni, West Midnapur.

"It was keen about the project but given the unclear situation about coal and iron ore, it was not practical to go ahead with the project," Jindal had told journalists on Sunday. According to industry sources, JSW would be looking for alternative expansion through the merger and acquisition route and acquisition of the Bhushan Steel assets would be a good strategic fit for the company.

India's iron ore imports jump to record 15 MT in FY'15

India's iron ore imports jumped manifold to a record 15 million tonnes in the financial year 2014-15 owing to ban on mining activities and declining global prices, a report said on Monday.

A report by industry consultancy SteelMint said that FY'15 marked an all time high of 15 MT iron ore imports into India.

The huge import of Iron ore last fiscal, ended March 31, by an iron ore rich India is attributed to the bans on various mines by the Supreme Court and declining global prices of the commodity.

In 2013-14, the imports stood at a mere 0.320 Million tonne. The report said the imports last fiscal were largely from South Africa (5.9 MT) followed by Brazil (3.7 MT), Australia (1.9 MT) and Oman (1.4 MT) among others. Exports were recorded at 4.5 MT during the fiscal.

JSW Steel, India's third largest steel producer imported 8.4 MT iron ore followed by Tata Steel at 3.04 MT.

Other major importers were Tata International, Essar Steel and Jindal Saw. Mining ban in mineral rich states like Odisha and Jharkhand forced the largest buyer of raw material, JSW, to import the principal steel making commodity.

JSW Steel’s crude steel production for Feb 2015 at 9.47 lakh tones

JSW Steel Ltd has informed BSE regarding a Press Release dated March 13, 2015 titled "Crude Steel Production: 0.95 Million tons in Febâ€™15".Source: BSE

Read all announcements in JSW Steel

Welspun Enterprises completes sale of WMSL to JSW Steel

Welspun Enterprises (WEPL), part of the USD 3 billion Welspun Group, said here today that it has completed the sale of Welspun Maxsteel (WMSL) to JSW Steel (JSW) in follow up to the definitive agreement between the two companies on August 18.

The deal, which included the sale of the entire shareholding of WMSL held by WEPL to JSW Steel, was cleared by 'the Competition Commission of India' on September 23, the company said in a release issued here.

The deal concluded with further infusion of about Rs 1940.000 Million by WEPL after adjusting the value of net current assets receivable by it to fulfill the gap between the current long term loan liabilities of WMSL and amount infused by JSW in WMSL.

As a result, WMSL's long term loan liability of about Rs 10950.000 Million stands fully repaid.

Welspun Group had earlier identified Welspun Maxsteel, as its non-core business, hence has accordingly exited the same.

CMT REPORT (Corruption, Money Laundering & Terrorism]

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

1] INFORMATION ON DESIGNATED PARTY

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

2] Court Declaration :

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

3] Asset 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. 62.35
UK Pound	1	Rs. 93.10
Euro	1	Rs. 67.13

INFORMATION DETAILS

Information Gathered by :	DIP

Analysis Done by :	SUB

Report Prepared by :	TRU

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	9
PAID-UP CAPITAL	1~10	8
OPERATING SCALE	1~10	8
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	8
--PROFITABILITY	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	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		68

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

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MIRA INFORM REPORT

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