MIRA INFORM REPORT

 

 

Report No. :

355351

Report Date :

18.12.2015

 

IDENTIFICATION DETAILS

 

Name :

JSW STEEL LIMITED (w.e.f. 2005)

 

 

Formerly Known As :

JINDAL VIJAYNAGAR STEEL LIMITED

 

 

Registered Office :

JSW Centre, Bandra Kurla Complex, Bandra (East), Mumbai – 400051, Maharashtra

Tel. No.:

91-22-42861000

 

 

Country :

India

 

 

Financials (as on) :

31.03.2015

 

 

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

 

 

IEC No.:

0794007368

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

Not Available

 

 

PAN No.:

[Permanent Account No.]

AAACJ4323N

 

 

Legal Form :

A Public Limited Liability Company. The Company's Shares are Listed on the Stock Exchanges.

 

 

Line of Business :

Subject is engaged in the business of production and distribution of iron and steel products. (Registered Activity)

 

 

No. of Employees :

12271 (Approximately)

 

 

RATING & COMMENTS

 

MIRA’s Rating :

A (68)

 

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 :

Slow but correct

 

 

Litigation :

Exist

 

 

Comments :

Subject is part of the JSW group, which in turn is part of the O.P. Jindal group. The JSW group has presence across various sectors, such as steel, energy, minerals, ports and infrastructure, cement etc. the company is engaged in manufacturing of iron and steel products. It offers mild steel hot rolled coils, plates and sheets, tolerances and downstream products include hot rolled plates, cold rolled close annealed and galvanized sheets and coils.

 

Its integrated steel manufacturing units located across three states i.e. Karnataka, Maharashtra and Tamilnadu have facilities to produce a wide range of flat and long steel products.

 

For the financial year ended 2015, the company has reported marginal growth of 2.02 in its revenue and maintain average profit margin at 5.56 % during the year under review. 

 

The ratings continue to derive strength from company’s significant presence in the Indian steel industry, strong track record of the management in project execution and cost management expertise, wide product offering with focus on enriching product mix.

 

Ratings draw comfort diversification of iron ore supply sources marked by its hedging mechanism in place mitigating foreign exchange risk to a large extent and adequate liquidity position of the company.

 

However, rating strength is partially offset by increasing financial leverage level, susceptibility of profit margins to volatility of input costs due to lack of captive sources of raw materials, commitment towards various projects and related risks, and presence in the inherently cyclical steel industry which is currently in the midst of a slowdown.

 

Payments are reported to be slow but correct.

 

In view of aforesaid, the company can be considered good for normal business dealings at usual trade terms and conditions.  

 

 

 

ECGC Country Risk Classification List – March 31, 2015

 

Country Name

Previous Rating

(31.12.2014)

Current Rating

(31.03.2015)

India

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

EXTERNAL AGENCY RATING

 

Rating Agency Name

CARE

Rating

Long term bank facilities : AA

Rating Explanation

High degree of safety and very low credit risk.

Date

30.10.2015

 

Rating Agency Name

CARE

Rating

Short term bank facilities : A1+

Rating Explanation

Very strong degree of safety and carry lowest credit risk.

Date

30.10.2015

 

 

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 31-03-2015.

 

 

INFORMATION DENIED

 

Management non-cooperative (91-22-42861000)

 

 

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

jvsl@jvsl.com

Website :

http://www.jsw.in

 

 

Corporate Office 1:

Victoria House, 2nd 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

 

 

Factory 6  :

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

 

 

Foundation :

Jindal Mansion, 5A, G. Deshmukh Marg, Next to Jaslok Hospital, Pedder Road, Mumbai – 400026, 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 31.03.2015

 

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. Naveen Raj Singh, IAS

Designation :

Nominee Director, KSIIDC

 

 

Name :

Mr. Hiromu Oka

Designation :

Nominee Director of JFE Steel  Corporation, Japan

 

 

Name :

Dr. S K Gupta

Designation :

Director

 

 

Name :

Mr. Kyoichi Kameyama

Designation :

Nominee Director, JFE Steel Corporation, Japan

 

 

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 :

Mr. Lancy Varghese

Designation :

Company Secretary

 

 

Name :

Mr. Ghanshyam

Designation :

Accounts Manager

 

 

Name :

Mr. Rajeev Madhusudan Pai

Designation :

Chief Financial officeer

 

 

SHAREHOLDING PATTERN

 

As on 30.09.2015

 

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

http://www.bseindia.com/include/images/clear.gif(1) Indian

 

 

http://www.bseindia.com/include/images/clear.gifIndividuals / Hindu Undivided Family

4051047

1.68

http://www.bseindia.com/include/images/clear.gifCentral Government / State Government(s)

907952

0.38

http://www.bseindia.com/include/images/clear.gifBodies Corporate

89518358

37.03

http://www.bseindia.com/include/images/clear.gifSub Total

94477357

39.09

http://www.bseindia.com/include/images/clear.gif(2) Foreign

 

 

http://www.bseindia.com/include/images/clear.gifIndividuals (Non-Residents Individuals / Foreign Individuals)

11099

0.00

http://www.bseindia.com/include/images/clear.gifBodies Corporate

5704612

2.36

http://www.bseindia.com/include/images/clear.gifSub Total

5715711

2.36

Total shareholding of Promoter and Promoter Group (A)

100193068

41.45

(B) Public Shareholding

http://www.bseindia.com/include/images/clear.gif(1) Institutions

 

 

http://www.bseindia.com/include/images/clear.gifMutual Funds / UTI

6549859

2.71

http://www.bseindia.com/include/images/clear.gifFinancial Institutions / Banks

4712689

1.95

http://www.bseindia.com/include/images/clear.gifCentral Government / State Government(s)

1237500

0.51

http://www.bseindia.com/include/images/clear.gifForeign Institutional Investors

41500087

17.17

http://www.bseindia.com/include/images/clear.gifSub Total

54000135

22.34

http://www.bseindia.com/include/images/clear.gif(2) Non-Institutions

 

 

http://www.bseindia.com/include/images/clear.gifBodies Corporate

18303191

7.57

http://www.bseindia.com/include/images/clear.gifIndividuals

 

 

http://www.bseindia.com/include/images/clear.gifIndividual shareholders holding nominal share capital up to Rs. 0.100 Million

13592867

5.62

http://www.bseindia.com/include/images/clear.gifIndividual shareholders holding nominal share capital in excess of Rs. 0.100 Million

12375080

5.12

http://www.bseindia.com/include/images/clear.gifAny Others (Specify)

43257703

17.90

http://www.bseindia.com/include/images/clear.gifTrusts

2473942

1.02

http://www.bseindia.com/include/images/clear.gifOverseas Corporate Bodies

2158

0.00

http://www.bseindia.com/include/images/clear.gifNon Resident Indians

3216460

1.33

http://www.bseindia.com/include/images/clear.gifOthers

37565143

15.54

http://www.bseindia.com/include/images/clear.gifSub Total

87528841

36.21

Total Public shareholding (B)

141528976

58.55

Total (A)+(B)

241722044

100.00

(C) Shares held by Custodians and against which Depository Receipts have been issued

0

0.00

http://www.bseindia.com/include/images/clear.gif(1) Promoter and Promoter Group

0

0.00

http://www.bseindia.com/include/images/clear.gif(2) Public

0

0.00

http://www.bseindia.com/include/images/clear.gifSub Total

0

0.00

Total (A)+(B)+(C)

241722044

0.00

 

 

BUSINESS DETAILS

 

Line of Business :

Subject is engaged in the business of production and distribution of iron and steel products. (Registered Activity)

 

 

Products :
  • Iron
  • steel

 

 

 

Brand Names :

Not Available

 

 

 

 

Agencies Held :

Not Available

 

 

 

 

Exports :

Not Divulged

 

 

 

 

Imports :

Not Divulged

 

 

 

 

Terms :

Not Divulged

 

 

 

PRODUCTION STATUS (AS ON 31.03.2015)

 

Particulars

Unit

Installed Capacity

Actual Production

MS Slabs

Tonnes

11600000

10387412

Hot Rolled Coils/Steel Plates/Sheets

Tonnes

11500000

10068165

Cold Rolled Coils/Sheets

Tonnes

3125000

1758799

Galvanised/Galvalum Coils/Sheets

Tonnes

400000

2247085

Steel Billets and Bloom

Tonnes

2500000

2059710

Long Rolled Products

Tonnes

2450000

354221

 

NOTES:

 

1) As certified by the management and accepted by auditors, being a technical matter.

 

 

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 :

12271 (Approximately)

 

 

Bankers :
  • ICICI Bank Limited, Landmarkrace Cource Circle, Alkapuri, Vadodara- 390015, Gujarat, India
  • State Bank of India, The Capital, 16th Floor, Bandra Kurla Complex, Bandra (East), Mumbai- 400051, Maharashtra, India
  • Allahabad Bank
  • Bank of Baroda
  • Bank of India
  • IDBI Bank Limited
  • Indian Bank
  • Indian Overseas Bank
  • Punjab National Bank
  • State Bank of Mysore
  • State Bank of Patiala
  • Union Bank of India
  • UCO Bank
  • Vijaya Bank

 

 

Facilities :

SECURED LOANS

31.03.2015

Rs. In Million

31.03.2014

Rs. In Million

Long Term Borrowings

 

 

10.34 % Non convertible debentures of Rs.1.000 Million each

10000.000

10000.000

10.02 % Non convertible debentures of Rs.1.000 Million each

10000.000

10000.000

11 % Non convertible debentures of Rs.1.000 Million each

10000.000

10000.000

10.60 % Non convertible debentures of Rs.1.000 Million each

3281.300

3500.000

9.72 % Non convertible debentures of Rs.1.000 Million each

4000.000

0.000

10.40 % Non convertible debentures of Rs. 1.000  Million each

2500.000

0.000

10.60 % Non convertible debentures of Rs. 1.000  Million each

4250.000

0.000

9.66 % Non convertible debentures of Rs.1.000 Million each

3000.000

0.000

10.50 % Non convertible debentures of Rs.10 Million each

1750.000

0.000

10.10 % Non convertible debentures of Rs.1.000 Million each

4687.500

7187.500

10.25 % Non convertible debentures of Rs.1.000 Million each

3333.300

5000.00

9.62 % Non convertible debentures of Rs.10 Million

3000.000

0.000

10.20 % Non convertible debentures of Rs. 1.000 Million each

2000.000

0.000

10.20 % Non convertible debentures of Rs.1.000  Million each

5000.000

0.000

10.40 % Non convertible debentures of Rs. 1.000  Million each

1750.000

0.000

10.55 % Non convertible debentures of Rs. 1.000 Million each

1500.000

1500.000

10.55 % Non convertible debentures of Rs. 1.000  Million each

10000.000

10000.000

10.50 % Non convertible debentures of Rs.1.000  Million each

750.000

1500.000

11.93 % Non convertible debentures of Rs. 1.000  Million each

19.500

97.500

11.93 % Non convertible debentures of Rs. 1.000  Million each

0.000

0.000

 

 

 

Term Loans

 

 

Rupee Term Loans from Banks

72213.600

91347.700

Foreign Currency Term Loans from Banks

3530.100

6037.000

Rupee Term Loans from Financial Institution

0.000

30.000

 

 

 

Short Term Borrowings

 

 

Working Capital Loans from Banks

215.300

10656.600

Foreign Currency Loan from Bank

2158.100

0.000

Total

158938.700

166856.300

 

 

 

Auditors :

 

Name :

Deloitte Haskins and Sells LLP

Chartered Accountants

Address :

Tower 3, 27th - 32nd  floor, Senapati Bapat Marg, Elphistone Road (West), Mumbai-400013, Maharashtra, India 

Tel No.:

91-22-61854000

Fax No.:

91-22-61854501/4601

 

Membership :

--

 

 

Associates :
  • JSW Praxair Oxygen Private Limited (formerly known as Jindal Praxair Oxygen Company Private Limited)
  • Dolvi Minerals & Metals Private Limited (w.e.f. 27.11.2014)
  • Dolvi Coke Projects Limited (w.e.f. 04.12.2014)

 

 

Subsidiaries:
  • JSW Steel (Netherlands) B.V.
  • JSW Steel (UK) Limited
  • Argent Independent Steel (Holdings) Limited
  • JSW Steel Service Centre (UK) Limited
  • JSW Steel Holding (USA) Inc.
  • JSW Steel (USA) Inc.
  • Periama Holdings, LLC
  • Purest Energy, LLC
  • Meadow Creek Minerals, LLC
  • Hutchinson Minerals, LLC
  • R.C. Minerals, LLC
  • Keenan Minerals, LLC
  • Peace Leasing, LLC
  • Prime Coal, LLC
  • Planck Holdings, LLC
  • Rolling S Augering, LLC
  • Periama Handling, LLC
  • Lower Hutchinson Minerals, LLC
  • Caretta Minerals, LLC
  • JSW Panama Holdings Corporation
  • Inversiones Eroush Limitada
  • Santa Fe Mining
  • Santa Fe Puerto S.A.
  • JSW Natural Resources Limited
  • JSW Natural Resources Mozambique Limitada
  • JSW ADMS Carvo Lda
  • JSW Mali Resources SA
  • JSW Steel Processing Centres Limited
  • JSW Bengal Steel Limited
  • JSW Natural Resources India Limited
  • Barbil Beneficiation Company Limited
  • Barbil Iron Ore Company Limited (w.e.f. 29.01.2014)
  • JSW Jharkhand Steel Limited
  • JSW Steel East Africa Limited
  • Amba River Coke Limited
  • JSW Energy (Bengal) Limited
  • JSW Natural Resource Bengal Limited
  • JSW Steel Coated Products Limited
  • Peddar Realty Private Limited
  • Nippon Ispat Singapore (PTE) Limited
  • Erebus Limited
  • Arima Holding Limited
  • Lakeland Securities Limited
  • JSW Steel (Salav) Limited (w.e.f 31.10.2014)
  • Everbest Steel & Mining Holdings Limited (w.e.f. 13.02.2015)

 

Joint Venture  :

  • Vijayanagar Minerals Private Limited
  • Rohne Coal Company Private Limited
  • JSW Severfield Structures limited
  • Gourangdih Coal Limited
  • Toshiba JSW Power System Private Limited
  • MJSJ Coal Limited
  • GEO Steel LLC
  • JSW Structural Metal Decking Limited
  • JSW MI Steel Service Centre Private Limited
  • JSW Vallabh Tin Plate Private Limited (w.e.f. 07.04.2014)

 

Enterprises over which key management personnel and relatives of such personnel exercise significant influence:

  • JSW Energy Limited
  • Jindal Stainless Limited
  • JSW Realty and Infrastructure Private Limited
  • Jindal Saw Limited
  • Jindal Steel and Power Limited
  • JSOFT Solutions Limited
  • Jindal Industries Limited
  • JSW Cement Limited
  • JSW Jaigarh Port Limited
  • Reynold Traders Private Limited
  • Raj West Power Limited
  • JSW Power Trading Company Limited
  • JSW Aluminium Limited (ceased from 15.10.2013 )
  • P Jindal Foundation
  • JSW Infrastructure Limited
  • South West Port Limited
  • JSW Techno Projects Management Limited
  • South West Mining Limited
  • JSW Projects Limited
  • Sapphire Technologies Limited
  • Jindal Technologies and Management Services Private Limited
  • JITF Shipping and Logistics (Singapore) PTE Limited
  • JSW Foundation
  • JSW Investment Private Limited
  • AVH Private Limited
  • JSW Bengaluru Football Club Private Limited
  • JSW International Trade Corp PTE Limited
  • JSW Dharamatar Port Private Limited
  • JSL Lifestyle Limited
  • JSL Architecture Limited
  • Jindal Power Limited
  • Jindal Fittings Limited
  • Jindal Saw USA LLC
  • M/s Shadeed Iron and Steel Company LLC

 

 

CAPITAL STRUCTURE

 

As on 31.03.2015

 

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

241722044

Shares issued during the year

--

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

485414604

Issued during the year

--

Outstanding at the end of the year

485414604

 

 

Rights, preferences and restrictions attached to Equity shares

The Company has a single class of equity shares. Each shareholder is eligible for one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.

 

 

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 each and 0.01% cumulative redeemable preference shares (CRPS2) of  Rs. 10 each. Each holder of CRPS1 is entitled to one vote per share, in proportion to the amount paid on CRPS1 held, only on resolutions placed before the Company which directly affect the rights attached to CRPS1. CRPS1 are redeemable at par in four equal ‘quarterly installments commencing from 15 December 2017. The shares carry a right to receive 10% dividend every year till redemption. 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 @ 0.01% p.a., when declared. CRPS2 is redeemable at par in 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 CRPS1 and CRPS2 will have priority over equity shares 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%

Vividh Consultancy and advisory Services Private Limited

13885669

5.74%

JSW Investment Private Limited

13516309

5.59%

 

 

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:

 

(i) 1,86,04,844 Equity shares fully paid up to the shareholders of the erstwhile JSW Ispat Steel Limited pursuant to a Composite Scheme of Amalgamation and Arrangement. (refer note 25(4)).

 

(ii) 48,54,14,604 0.01% Cumulative redeemable preference shares fully paid up to the shareholders of the erstwhile JSW Ispat Steel Limited pursuant to a composite scheme of amalgamation and arrangement. (refer note 25(4)).

 

FINANCIAL DATA

[all figures are in Rupees Million]

 

 

ABRIDGED BALANCE SHEET

 

 

SOURCES OF FUNDS

 

31.03.2015

31.03.2014

31.03.2013

I.              EQUITY AND LIABILITIES

 

 

 

(1)Shareholders' Funds

 

 

 

(a) Share Capital

10671.900

10671.900

5631.800

(b) Reserves & Surplus

246574.100

232169.900

193741.900

(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)

257246.000

242841.800

199373.700

 

 

 

 

(3) Non-Current Liabilities

 

 

 

(a) long-term borrowings

254968.900

210543.200

154342.600

(b) Deferred tax liabilities (Net)

29665.900

19085.100

34502.300

(c) Other long term liabilities

2361.000

4664.000

1940.600

(d) long-term provisions

567.800

406.700

395.100

Total Non-current Liabilities (3)

287563.600

234699.000

191180.600

 

 

 

 

(4) Current Liabilities

 

 

 

(a) Short term borrowings

2643.400

39206.600

11095.300

(b) Trade payables

125153.900

99912.500

92743.600

(c) Other current liabilities

72781.100

64159.700

48739.800

(d) Short-term provisions

3536.000

3437.200

3020.500

Total Current Liabilities (4)

204114.400

206716.000

155599.200

 

 

 

 

TOTAL

748924.000

684256.800

546153.500

 

 

 

 

II.            ASSETS

 

 

 

(1) Non-current assets

 

 

 

(a) Fixed Assets

 

 

 

(i) Tangible assets

384975.600

372251.200

276044.700

(ii) Intangible Assets

718.300

699.600

343.200

(iii) Capital work-in-progress

75938.500

67896.600

50339.700

(iv) Intangible assets under development

1960.100

678.100

405.700

(b) Non-current Investments

41972.800

43128.500

44956.100

(c) Deferred tax assets (net)

0.000

0.000

0.000

(d) Long-term Loan and Advances

53119.100

49614.700

30839.900

(e) Other Non-current assets

0.000

0.000

0.800

Total Non-Current Assets

558684.400

534268.700

402930.100

 

 

 

 

(2) Current assets

 

 

 

(a) Current investments

0.000

677.000

1404.500

(b) Inventories

85847.400

61965.700

47991.000

(c) Trade receivables

20268.300

22187.400

18622.000

(d) Cash and cash equivalents

17950.600

4657.200

14017.900

(e) Short-term loans and advances

66173.300

60500.800

61188.000

(f) Other current assets

0.000

0.000

0.000

Total Current Assets

190239.600

149988.100

143223.400

 

 

 

 

TOTAL

748924.000

684256.800

546153.500

 

 

PROFIT & LOSS ACCOUNT

 

 

 

PARTICULARS

 

31.03.2015

31.03.2014

31.03.2013

 

SALES

 

 

 

 

 

Income

460873.200

452977.200

354918.100

 

 

Other Income

4667.700

3310.500

2608.800

 

 

TOTAL                                                   (A)

465540.900

456287.700

357526.900

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Cost of materials consumed

273456.000

267058.200

225903.700

 

 

Purchases of traded goods

3856.400

4948.100

100.000

 

 

Changes in inventories of Finished goods, Work-in-progress and Stock-in-Trade

(16669.300)

(2441.000)

(1724.600)

 

 

Employee benefits expense

9468.300

7995.800

6709.700

 

 

Other expenses

102045.400

87590.200

60841.100

 

 

Exceptional Items

3963.000

16923.000

3672.100

 

 

TOTAL                                                   (B)

376119.800

382074.300

295502.000

 

 

 

 

 

Less

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

89421.100

74213.400

62024.900

 

 

 

 

 

Less

FINANCIAL EXPENSES                                    (D)

29086.900

27401.300

17244.800

 

 

 

 

 

 

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

60334.200

46812.100

44780.100

 

 

 

 

 

Less

DEPRECIATION/ AMORTISATION                     (F)

27845.000

27258.800

19738.900

 

 

 

 

 

 

PROFIT / (LOSS) BEFORE TAX (E-F)               (G)

32489.200

19553.300

25041.200

 

 

 

 

 

Less

TAX                                                                  (H)

10824.400

6208.200

7029.000

 

 

 

 

 

 

PROFIT / (LOSS) AFTER TAX (G-H)                  (I)

21664.800

13345.100

18012.200

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

37449.300

33060.200

19873.000

 

 

 

 

 

Less

PURSUANT TO THE COMPANIES SCHEME OF AMALGAMATION AND ARRANGEMENT

0.000

3419.500

0.000

 

 

 

 

 

Less

Depreciation on transition to schedule II of the Companies Act, 2013

472.900

0.000

0.000

 

 

 

 

 

Less

APPROPRIATIONS

 

 

 

 

 

Transfer to General Reserve

2170.000

1340.000

1810.000

 

 

Dividend on Additional Equity Shares Issued

0.000

217.700

0.000

 

 

Dividend on Preferences Shares

279.000

279.000

279.000

 

 

Proposed Final Dividend on Equity Shares

2658.900

2658.900

2231.200

 

 

Corporate Dividend Tax

598.100

499.300

426.600

 

 

Transfer To Debenture Redemption Reserve

643.200

541.600

78.200

 

BALANCE CARRIED TO THE B/S

52292.000

37449.300

33060.200

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

 

 

 

 

 

F.O.B. Value of Exports

78817.300

80564.500

69693.500

 

 

Sale of Carbon Credits

0.000

0.000

170.700

 

 

Commission and Fees

515.500

334.600

0.000

 

 

Interest Income

1603.100

1930.400

1808.800

 

TOTAL EARNINGS

80935.900

82829.500

71673.000

 

 

 

 

 

 

IMPORTS

 

 

 

 

 

Raw Materials

145177.400

142583.800

104010.900

 

 

Stores & Spares

6433.300

4014.100

4671.000

 

 

Capital Goods

21338.900

15248.700

17213.900

 

TOTAL IMPORTS

172949.600

161846.600

125895.800

 

 

 

 

 

 

Earnings / (Loss) Per Share (Rs.)

88.24

53.86

79.28

 

 

CURRENT MATURITIES OF LONG TERM DEBT DETAILS

 

 

Particulars

 

31.03.2015

31.03.2014

31.03.2013

Current Maturities of Long term debt

23728.800

22094.500

13645.700

Cash generated from operations

70712.700

56269.700

44069.400

Net Cash Generated From Operating Activities

63604.800

52741.800

39246.600

 

 

 

 

QUARTERLY RESULTS

 

Particulars

 

 

30.06.2015

(Unaudited)

30.09.2015

(Unaudited)

 

 

1st  Quarter

2nd Quarter

Net Sales

 

101281.500

97652.000

Total Expenditure

 

86234.400

81994.400

PBIDT (Excl OI)

 

15047.100

15657.600

Other Income

 

924.700

1059.600

Operating Profit

 

15971.800

16717.200

Interest

 

6533.600

6749.100

Exceptional Items

 

(1455.400)

(1162.000)

PBDT

 

7982.800

8806.100

Depreciation

 

7522.200

5098.800

Profit Before Tax

 

460.600

3707.300

Tax

 

153.100

1297.300

Provisions and contingencies

 

NA

NA

Profit After Tax

 

307.500

2410.000

Extraordinary Items

 

NA

NA

Prior Period Expenses

 

NA

NA

Other Adjustments

 

NA

NA

Net Profit

 

307.500

2410.000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

KEY RATIOS

 

 

PARTICULARS

 

 

31.03.2015

31.03.2014

31.03.2013

Net Profit Margin

(PAT / Sales)

(%)

4.70

6.68

6.11

 

 

 

 

 

Operating Profit Margin

(PBDIT/Sales)

(%)

19.40

20.12

18.51

 

 

 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)

4.60

6.37

6.37

 

 

 

 

 

Return on Investment (ROI)

(PBT/Networth)

 

0.13

0.15

0.14

 

 

 

 

 

Debt Equity Ratio

(Total Debt /Networth)

 

1.09

1.12

0.90

 

 

 

 

 

Current Ratio

(Current Asset/Current Liability)

 

0.93

0.73

0.92

 

 

STOCK PRICES

 

Face Value

Rs.10.00

Market Value

Rs.1013.25

 

 

FINANCIAL ANALYSIS

[all figures are in Rupees Million]

 

DEBT EQUITY RATIO

 

Particular

31.03.2013

31.03.2014

31.03.2015

 

(Rs. In Million)

(Rs. In Million)

(Rs. In Million)

Share Capital

5631.800

10671.900

10671.900

Reserves & Surplus

193741.900

232169.900

246574.100

Net worth

199373.700

242841.800

257246.000

 

 

 

 

long-term borrowings

154342.600

210543.200

254968.900

Short term borrowings

11095.300

39206.600

2643.400

Current maturities of long-term debts

13645.700

22094.500

23728.800

Total borrowings

179083.600

271844.300

281341.100

 

 

 

 

YEAR-ON-YEAR GROWTH

 

Year on Year Growth

31.03.2013

31.03.2014

31.03.2015

 

(Rs. In Million)

(Rs. In Million)

(Rs. In Million)

Sales

354918.100

452977.200

460873.200

 

 

27.629

1.743

 

 

 

 

NET PROFIT MARGIN

 

Net Profit Margin

31.03.2013

31.03.2014

31.03.2015

 

(Rs. In Million)

(Rs. In Million)

(Rs. In Million)

Sales

354918.100

452977.200

460873.200

Profit

21684.300

30268.100

25627.800

 

6.11%

6.68%

5.56%

 

 

 

LOCAL AGENCY FURTHER INFORMATION

 

Sr. No.

Check List by Info Agents

Available in Report (Yes / No)

1]

Year of establishment

Yes

2]

Constitution of the entity -Incorporation details

Yes

3]

Locality of the entity

Yes

4]

Premises details

No

5]

Buyer visit details

--

6]

Contact numbers

No

7]

Name of the person contacted

No

8]

Designation of contact person

Yes

9]

Promoter’s background

Yes

10]

Date of Birth of Proprietor / Partners / Directors

Yes

11]

Pan Card No. of Proprietor / Partners

No

12]

Voter Id Card No. of Proprietor / Partners

No

13]

Type of business

Yes

14]

Line of Business

Yes

15]

Export/import details (if applicable)

No

16]

No. of employees

Yes

17]

Details of sister concerns

Yes

18]

Major suppliers

No

19]

Major customers

No

20]

Banking Details

Yes

21]

Banking facility details

Yes

22]

Conduct of the banking account

--

23]

Financials, if provided

Yes

24]

Capital in the business

Yes

25]

Last accounts filed at ROC, if applicable

Yes

26]

Turnover of firm for last three years

Yes

27]

Reasons for variation <> 20%

--

28]

Estimation for coming financial year

No

29]

Profitability for last three years

Yes

30]

Major shareholders, if available

Yes

31]

External Agency Rating, if available

Yes

32]

Litigations that the firm/promoter involved in

Yes

33]

Market information

--

34]

Payments terms

No

35]

Negative Reporting by Auditors in the Annual Report

No

 

 

LITIGATION DETAILS:

 

LITIGATION DETAILS

Bench:- Bombay

Presentation Date:- 06/02/2015

Lodging No. :

CEXAL/33/2015

Failing Date:-

06/02/2015

Reg. No.:-

CEXA/82/2015

Reg. Date:-

11/03/2015

 

 

 

 

Petitioner:-

THE COMMISSIONER CENTRAL EXCISE THANE -1

Respondent:-

JSW STEEL LIMITED

Petn.Adv:-

JITENDRA BRIJBHUSHAN MISHRA (12937)

 

 

District:-

MUMBAI

Bench:-

DIVISION

Category:-

CENTRAL EXCISE APPEAL (CEXA)

Status:-

Pre-Admission

Stage:-

FOR ADMISSION [ORIGINAL SIDE MATTERS]

Next Date:-

20/08/2015

 

 

Coram:-

HON’BLE SHRI JUSTICE S.C. DHARMADIKARI

 

HON’BLE SHRI JUSTICE B.P. COLABAWALLA

 

 

Act. :

Central Excise and Salt Act

Under Section:

35G

 

GENERAL INFORMATION

 

The Company was incorporated on 15 March 1994. The Company is predominantly engaged in the business of production and distribution of iron and steel products.

 

 

 

 

 

 

 

 

 

 

 

 

FINANCIAL PERFORMANCE

 

Gross Turnover and Net Turnover for FY 2014-15 stood at Rs.496580.000 Million and Rs. 453520.000 Million respectively with an growth of 2% on YOY basis.

 

The Operating EBIDTA was marginally up at Rs. 8,872 Million in the FY 2014-15 The Company posted a Profit after Tax of Rs. 21660.000 crores up by 62% on YOY basis.

 

The Company’s net gearing as on 31st March 2015 stood at 1.01 (as against 1.10 as on 31st March 2014). The weighted average interest cost of Debt was at 7.75% for FY 2014-15 (as against 9.03% for FY 2013-14). FY 2014-15 was particularly challenging for the steel industry.

 

The global industry was burdened by the issue of overcapacity and surplus steel which made global steel prices weaker. The dramatic drop in crude oil prices impacted the investment cycle. Lower steel demand and the economic slowdown in China also added to the steep fall in steel prices. Further, while most global currencies depreciated against the US Dollar, the Rupee remained range bound making India’s steel exports less competitive. In this scenario, JSW Steel’s performance was relatively strong with improvement in absolute volumes. This was driven by a focus on value added and branded products and operational efficiency in addition to developing existing and new markets.

 

HIGHLIGHTS FY 2014-15

 

•       Sales of cold rolled products surged by 54% in FY 2014-15 compared to FY 2013-14.

•       TMT volumes increased by 10% compared to FY 2013-14.

•       Retail sales in the domestic market grew by 8%and Sales of branded products, grew by 7% compared to FY 2013-14.

 

RESULTS OF OPERATIONS:

 

Standalone Results

 

The Company produced 12.63 million tonnes (MnT) of crude steel in FY 2014-15, up 4% over the previous year. Its steel sales touched 12.03 MnT, increasing by 1.43% year on year. The Company took several initiatives during the last financial year that helped in achieving and consolidating growth in production and sales volumes. It commissioned new facilities to enrich product mix, leverage the export demand, diversify its inputs sourcing strategy and strengthen market penetration through branded and value added special products.

 

The gross turnover and net turnover for the year was Rs. 496580.000 Million and Rs. 453520.000 Million, respectively, and showed a growth of 2.33% and 1.85%, respectively. The operating EBITDA was Rs. 88720.000 Million, and showed a growth of 1% with marginal decline in EBIDTA margin from 19.4% to 19.3%. The net profit after tax was Rs. 21660.000 Million after considering exceptional item of Rs. 3960.000 Million. The exceptional item includes provisioning towards diminution in carrying value of investments in JSW Steel (USA) Inc. of Rs. 334 Million and balance towards other subsidiaries. The Company’s net worth touched Rs. 25725.000 Million as on March 31, 2015 from Rs. 242840.000 Million as on March 31, 2014. The Company’s net debt gearing stood at 1.02 (compared to 1.10 as on March 31, 2014) and net debt to EBIDTA was at 3.17 (compared to 3.03, as on March 31, 2014).

 

AWARDS AND ACCOLADES

 

JSW Steel continues to be recognised by the world for its expertise and capabilities. The awards won during FY 2014-15 include the following:

 

1. Vijayanagar Plant won the prestigious Prime Minister’s Trophy for excellence in performance of Integrated Steel Plants for the year 2012-13.

2. CII-EXIM Bank Business Excellence Award – 2014, awarded by the Confederation of Indian Industry (CII): Commendation Certificate for Significant Achievement received on November 20, 2014.

 

3. CII-ITC Sustainability Award 2014: Awarded Commendation Certificate for Significant Achievement received on December 19, 2014.

 

4. IMC Ramakrishna Bajaj National Quality Award 2014: Won the IMC Ramakrishna Bajaj National Quality Award in the Manufacturing Category award received on March 20, 2015.

 

5. Salem Plant has won Second prize in IIM Sustainability Award under the Alloy Steel category.

 

6. Salem Plant has won Gold Trophy from ASSOCHAM for the Best ITI Skill Development through PPP Scheme in India.

 

MANAGEMENT DISCUSSION AND ANALYSIS

 

ECONOMIC SCENARIO

 

The world economic growth remained modest at 3.4% in CY 2014 amidst divergent growth trend in advanced and emerging economies. While the developed economies led by the US & UK continued to strengthen the growth in most emerging economies slowed down during the year. Many oil exporting economies were under stress due to a sharp drop in oil prices. Despite their slower growth, emerging markets and developing economies still accounted for three-fourths of global growth in CY 2014.

 

OUTLOOK

 

Global economic growth indicators are moderately positive, but the volatility in energy prices, currency adjustments threat of hike in interest rates in USA and swings in capital flows can potentially impact emerging economies.

The IMF forecasts world economy to expand at 3.5% this year and 3.8% in 2016, terming global growth prospects as moderate and uneven in its latest April 2015 World Economic Outlook. The growth in advanced economies, aided by fall in oil prices, is projected to strengthen, for the third year in a row, to 2.4% in CY 2015 compared to 1.8% in CY 2014. The growth in emerging markets and developing economies, on the other hand, is expected to weaken to 4.3% in CY 2015 compared to 4.6% in the previous year.

 

The economic growth in the United States is expected to exceed 3.1% during 2015. The growth is aided by strong domestic demand on back of the sharp fall in oil prices, declining unemployment rate, moderate fiscal adjustment and the continuation of an extremely accommodative monetary policy stance.

 

The Eurozone, supported by lower oil prices, large monetary stimulus and a weaker euro also displayed some initial sign of recovery in the later half of the year. For Japan the IMF projects growth expansion in CY 2015 primarily due to a weaker yen and lower oil prices. The global steel demand in CY 2015 is expected to increase by 0.5% to 1,544 MnT, while in CY 2016 it is projected to grow by 1.4% to 1,566 MnT. Steel demand in the developed economies is projected to grow by 0.2% in CY 2015 and by 1.8% in CY 2016. Chinese steel demand is projected to record a negative growth of 0.5% in CY 2015 as well as in CY 2016

 

 

UNSECURED LOAN:

 

Unsecured Loan

31.03.2015

Rs. In Million

31.03.2014

Rs. In Million

Long-term Borrowings

 

 

4.75 % Foreign currency bonds

31295.400

0.000

Foreign currency term loans from banks

66179.600

53326.500

Deferred sales tax loan

928.600

1017.000

 

 

 

Short Term Borrowings

 

 

Rupee Term Loans from Banks

270.000

18550.000

Commercial Paper

0.000

10000.000

 

 

 

Total

98673.600

82893.500

 

 

CONTINGENT LIABILITIES:

 

a) Bills discounted with re-course Rs.1449.800 Million (previous year Rs.1590.900 Million).

 

b) Guarantees provided on behalf of subsidiaries Rs.12739.700 Million (previous year Rs.13725.700 Million).

 

c) Standby letter of credit facility availed from resident Indian Banks secured by specific fixed assets of the Company in relation to overseas long term borrowing by JSW Steel Holding (USA) Inc and JSW Steel (Netherlands) B.V. (wholly owned subsidiaries of the Company) is Rs. 25036.300 Million (previous year Rs.24039.900 Million) and Rs.14395.900 Million (previous year Rs.4808.000 Million) respectively.

 

d) Disputed claims/levies (excluding interest, if any), in respect of:

 

(i) Excise duty Rs.4668.800 Million (previous year Rs.4419.500 Million);

 

(ii) Custom duty Rs.4370.300 Million (previous year Rs.4601.200 Million);

(iii) Income tax Rs.1706.800 Million (previous year Rs.17.400 Million);

(iv) Sales tax / Special entry tax Rs.155.94 Million (previous year Rs.2233.700 Million);

(v) Service tax Rs.1465.400 Million (previous year Rs.1292.500 Million);

(vi) Miscellaneous Rs.0.500 Million (previous year Rs.0.500 Million);

(vii) Levies by local authorities Rs.3.040 Million (previous year Rs.30.400 Million); and

(viii) Claims by suppliers and other parties (including for Forest Development Tax of Rs.665.46 Million (previous year Rs.669.54 Million)) Rs.1016.260 Million (Previous year Rs.1039.60 Million)

 

In 2008, the State of Karnataka levied a Forest Development Tax (FDT) treating iron ore as a forest produce. Writ petitions filed by various stakeholders challenging the levy before Karnataka High Court are pending disposal. The Management of the Company has been legally advised that this is a fairly arguable case from the Company’s perspective and accordingly, the tax is considered as recoverable. Tax payments made under protest in the earlier years (refer note 14)/tax payable are considered as ‘contingent liabilities’.

 

e) Arrears of fixed cumulative dividend on preference shares (CPRS) Rs.5.100 Million (previous year Rs.4.600 Million)

 

 

INDEX OF CHARGE:

 

S.No.

Charge ID

Date of Charge Creation/Modification

Charge amount secured

Charge Holder

Address

Service Request Number (SRN)

1

10580093

22/06/2015

10,000,000,000.00

ICICI BANK LIMITED

LANDMARKRACE COURCE CIRCLE, ALKAPURI, BARODA, Gujarat - 390015, INDIA

C58998030

2

10570589

21/05/2015

10,000,000,000.00

SBICAP TRUSTEE COMPANY LIMITED

202, Maker Tower 'E', Cuffe Parade, Mumbai, Maharashtra - 400005, INDIA

C54230875

3

10570056

27/04/2015

20,000,000,000.00

State Bank of India

The Capital, 16th Floor, Bandra Kurla Complex, Bandra (East), Mumbai, Maharashtra - 400051, INDIA

C53964854

4

10556047

22/06/2015 *

10,000,000,000.00

IDBI TRUSTEESHIP SERVICES LIMITED

Asian Building, Ground Floor, 17, R. Kamani Marg, Ballard Estate, Mumbai, Maharashtra - 400001, INDIA

C58998485

5

10569419

29/01/2015

7,000,000,000.00

IDBI TRUSTEESHIP SERVICES LIMITED

Asian Bldg., Ground Floor, 17, R.Kamani Marg, Ballard Estate, Mumbai, Maharashtra - 400001, INDIA

C53636056

6

10541935

19/12/2014

16,000,000,000.00

SBICAP TRUSTEE COMPANY LIMITED

202, Maker Tower E,, Cuffe Parade, Mumbai, Maharashtra - 400005, INDIA

C39902663

7

10537602

03/03/2015 *

2,000,000,000.00

IDBI TRUSTEESHIP SERVICES LIMITED

Asian Building, Ground Floor, 17, R Kamini Marg, Ballard Estate,, Mumbai, Maharashtra - 400001, INDIA

C48646053

8

10532797

03/03/2015 *

5,000,000,000.00

IDBI TRUSTEESHIP SERVICES LIMITED

Asian Building, Ground Floor, 17, R Kamini Marg,  Ballard Estate,, Mumbai, Maharashtra - 400001, INDIA

C48644728

9

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

10

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

 

* Date of charge modification

 

 

STATEMNET OF UNAUDITES RESULTS FOR THE QUARTER AND SIX MONTHS ENDED

30TH SEPTEMBER 2015

 

(STANDALONE RESULTS)

 

(Rs. In Million)

PARTICULARS

Quarter ended

Half year ended

 

30.09.2015

30.06.2015

30.09.2015

 

(Unaudited)

1. Income from operations

 

 

 

a) Sales of Products

 

 

 

Domestic Turnover

102228.200

101365.400

203593.600

Export Turnover

5571.800

9303.600

14875.400

Total

107800.000

110669.000

218469.000

Less : Excise Duty

11275.000

10850.300

22125.300

Net Sales

96525.000

99818.700

196343.700

 

 

 

 

b) Other Operating Income

1127.000

1462.800

2589.800

 

 

 

 

Total Income from Operations(net)

97652.000

101281.500

198933.500

2.Expenditure

 

 

 

a) Cost of material consumed

50183.700

56817.500

107001.200

b) Purchases of stock in trade

423.300

910.800

1334.100

c) Changes in inventories of finished goods, work-in-progress and stock-in-trade

3969.900

1170.800

5140.700

d) Employees benefit expenses

2570.100

2612.300

5182.400

e) Depreciation and amortization expenses

5098.800

7522.200

12621.000

f)  Power and Fuel

8337.200

8427.400

16764.600

g) Other expenditure

16510.200

16295.600

32805.800

Total expenses

87093.200

93756.600

180849.800

 

 

 

 

3. Profit from operations before other income and financial costs

10558.800

7524.900

18083.700

4. Other income

1059.600

924.700

1984.300

5. Profit from ordinary activities before finance costs

11618.400

8449.600

20068.000

6. Finance costs

6749.100

6533.600

13282.700

7. Net profit/(loss) from ordinary activities after finance costs but before exceptional items

4869.300

19160.000

6785.300

8. Exceptional item

 

 

 

Provision for Diminution in value of Investments

(1162.000)

(1455.400)

(2617.400)

9. Profit from ordinary activities before tax Expense:

3707.300

460.600

4167.900

10.Tax expenses

1297.300

153.100

1450.400

11.Net Profit / (Loss) from ordinary activities after tax (9-10)

2410.000

307.500

2717.500

12.Net Profit / (Loss) for the period (11-12)

 

 

 

13.Paid-up equity share capital (Nominal value Rs.10/- per share)

2417.200

2417.200

2417.200

14. Reserve excluding Revaluation Reserves as per balance sheet of previous accounting year

 

 

 

15.i) Earnings per share (before extraordinary items) of Rs.10/- each) (not annualised):

 

 

 

(a) Basic

9.62

0.92

10.55

(b) Diluted

9.62

0.92

10.55

 

 

 

 

15. Debt Service Coverage Ratio

--

--

0.91

16. Interest Service Coverage Ratio

--

--

1.57

 

 

PARTICULARS

Quarter ended

Half year ended

 

30.09.2015

30.06.2015

30.09.2015

A. Particulars of shareholding

(Unaudited)

1. Public Shareholding

 

 

 

- Number of shares

141528976

144010219

141528976

- Percentage of shareholding

58.55%

59.58%

58.55%

 

 

 

 

2. Promoters and Promoters group Shareholding-

100193069

97711825

100193068

a) Pledged /Encumbered

 

 

 

Number of shares

45936100

42087100

45936100

Percentage of shares (as a % of total shareholding of the promoter and promoter group)

45.85%

43.07%

45.85%

Percentage of shares (as a % of total share capital of the company)

19.00%

17.41%

19.00%

 

 

 

 

b) Non  Encumbered

 

 

 

Number of shares

54256968

55624725

54256963

Percentage of shares (as a % of total shareholding of the promoter and promoter group)

51.15%

56.93%

51.15%

Percentage of shares (as a % of total share capital of the company)

22.45%

23.01%

22.45%

 

 

 

 

 

PARTICULAR

3 months ended 30.09.2015

B. Investor Complaints

 

Pending at the beginning of the quarter

Nil

Receiving during the quarter

48

Disposed of during the quarter

48

Remaining unreserved at the end of the quarter

Nil

 

 

 

REVENUE, RESULTS AND CAPITAL EMPLOYED FOR THE SEGMENTS

 

PARTICULARS

Quarter ended

Half year ended

 

30.09.2015

30.06.2015

30.09.2015

1. Segment Revenue

(Unaudited)

Steel

102380.800

104028.300

206409.100

Power

10466.500

10821.400

21287.900

Others

0.000

0.000

0.000

Total

112847.300

114849.700

227697.000

Less : Inter Segment revenue

15195.300

13568.200

28763.500

Total Income

97652.000

10281.500

198933.500

 

 

 

 

2. Segment Result (Profit Before tax and interest)

 

 

 

Steel

5891.600

2393.900

8419.400

Power

4667.700

5232.700

9766.500

Others

0.000

0.000

0.000

Total

10559.300

7626.600

18185.900

Less : Unallocable Items 

 

 

 

Finance Costs

6749.100

6533.600

13282.700

Exceptional Item 

1162.000

1455.400

2617.400

Unallocable expenses net of Unallocable Income

(1059.100)

(823.000)

(1882.100)

Total Profit Before Tax

3707.300

460.600

4167.900

 

 

 

 

3.  Capital Employed (Segment Assets-Segment Liabilities)

 

 

 

Steel

466980.000

450798.800

466980.000

Power

17470.200

18260.600

17470.200

Others

0.000

0.000

0.000

Unallocated

(227903.300)

(212313.900)

(227903.300)

Total

256546.900

256745.500

256546.900

 

 

Note :

 

1. Exceptional items include Rs. 1147.800 Million for quarter ended September 30, 2015 (Rs. 2595.800 Million for the half year ended September 30, 2015 and Rs. 3337.500 Million for the year ended March 31, 2015) being provision for diminution, other than temporary, in the value of its investments of Rs. 7665.400 Million in JSW Steel USA Inc., a subsidiary of the Company. The value of the investments is estimated by considering fair market values of the fixed assets of the subsidiary as per External Valuers reports obtained. Having regard to the said valuations, no provision is considered necessary against the loans and accrued interest thereon aggregating to Rs. 28791.500 Million and the financial guarantees of Rs. 38656.200 Million as at September 30, 2015, relating to the said subsidiary.



2. The Company has considered valuations carried out by External Valuers of the iron ore and coal mines of its subsidiaries JSW Panama Holding Corporation (Panama) and Periama Holdings, LLC (Periama) respectively and concluded that no provision is presently necessary with respect to its investments and loans including accrued interest thereon aggregating to Rs. 18546.100 Million relating Panama and Rs. 8133.200 Million relating to Periama

3. Pursuant to the requirement under Schedule II to the Companies Act, 2013 the Company has, based on the external technical advice, effective April 01, 2015, identified components (significant parts) of the main asset having different useful lives as compared to the main asset and consequently revised the estimated useful lives of Plant and Machinery and Buildings. Accordingly, the depreciation charge for the quarter and half year ended 30 September, 2015 is lower by Rs. 2511.700 Million, and amount of Rs. 1099.800 Million (net of deferred tax) being effect of componentization, has been adjusted against the retained earnings as per transitional provision in Note 7 (b) of Schedule II.


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


5. The Standalone and Consolidated financial results have been reviewed by the Audit Committee and approved by the Board of Directors at its meeting held on October 21, 2015.


6. The auditors of the Company have carried out limited review of the Standalone Financial Results for the quarter and half year ended September 30, 2015 in compliance with Clause 41 of the Listing Agreement.

 

 

 

STATEMENT OF ASSETS AND LIABILITIES

 

SOURCES OF FUNDS

30.09.2015

 

 

I.              EQUITY AND LIABILITIES

 

(1)Shareholders' Funds

 

(a) Share Capital

10671.900

(b) Reserves & Surplus

245875.000

(c) Money received against share warrants

0.000

 

 

(2) Share Application money pending allotment

0.000

Total Shareholders’ Funds (1) + (2)

256546.900

 

 

(3) Non-Current Liabilities

 

(a) long-term borrowings

275324.300

(b) Deferred tax liabilities (Net)

30534.200

(c) Other long term liabilities

2230.700

(d) long-term provisions

627.000

Total Non-current Liabilities (3)

308716.200

 

 

(4) Current Liabilities

 

(a) Short term borrowings

27131.900

(b) Trade payables

101294.400

(c) Other current liabilities

71823.400

(d) Short-term provisions

0.000

Total Current Liabilities (4)

200249.700

 

 

TOTAL

765512.800

 

 

II.          ASSETS

 

(1) Non-current assets

 

(a) Fixed Assets

 

(i) Tangible assets

476484.200

(ii) Intangible Assets

 

(iii) Capital work-in-progress

 

(iv) Intangible assets under development

 

(V) goodwill on consolidation

40230.400

(b) Non-current Investments

0.000

(c) Deferred tax assets (net)

0.000

(d)  Long-term Loan and Advances

82191.900

(e) Other Non-current assets

0.000

Total Non-Current Assets

598906.500

 

 

(2) Current assets

 

(a) Current investments

0.000

(b) Inventories

72884.900

(c) Trade receivables

31760.200

(d) Cash and cash equivalents

10289.300

(e) Short-term loans and advances

51671.900

(f) Other current assets

0.000

Total Current Assets

166606.300

 

 

TOTAL

765512.800

 

 

 

FIXED ASSETS:

 

Tangible Assets

·         Freehold Land

·         Leasehold Land

·         Building

·         Plant and Machinery

·         Furniture And Fixtures

·         Vehicles and Aircrafts

 

Intangible Assets

·         Software

 

CMT REPORT (Corruption, Money Laundering & Terrorism]

 

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

 

1]             INFORMATION ON DESIGNATED PARTY

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

 

2]             Court Declaration :

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

 

3]             Asset Declaration :

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

 

4]             Record on Financial Crime :

               Charges or conviction registered against subject:                                                                                None

 

5]             Records on Violation of Anti-Corruption Laws :

               Charges or investigation registered against subject:                                                                             None

 

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

               Charges or investigation registered against subject:                                                                             None

 

7]             Criminal Records

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

 

8]             Affiliation with Government :

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

 

9]             Compensation Package :

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

 

10]           Press Report :

               No press reports / filings exists on the subject.

 

CORPORATE GOVERNANCE

 

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

 

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

 

 

CONTRAVENTION

 

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

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs. 67.04

UK Pound

1

Rs. 101.67

Euro

1

Rs. 73.93

 

 

INFORMATION DETAILS

 

Information Gathered by :

KMN

 

 

Analysis Done by :

KAR

 

 

Report Prepared by :

JYTK

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

8

PAID-UP CAPITAL

1~10

7

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

8

--CREDIT LINES

1~10

8

--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

 

 

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

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