MIRA INFORM REPORT

 

 

Report No. :

323291

Report Date :

20.05.2015

 

IDENTIFICATION DETAILS

 

Name :

JINDAL STEEL AND POWER LIMITED

 

 

Registered Office :

O.P. Jindal Marg, Hisar – 125005, Haryana

Tel No.:

91-1662-222471-84

 

 

Country :

India

 

 

Financials (as on) :

31.03.2014

 

 

Date of Incorporation :

28.09.1979

 

 

Com. Reg. No.:

05-009913

 

 

Capital Investment / Paid-up Capital :

Rs. 914.900 Million

 

 

CIN No.:

[Company Identification No.]

L27105HR1979PLC009913

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

Not Available

 

 

PAN No.:

[Permanent Account No.]

Not Available

 

 

Legal Form :

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

 

 

Line of Business :

Manufacturer of Iron and Steel Products and also Power Generation.

 

 

No. of Employees :

Not Divulged

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Aa (72)

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

Status :

Good

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Exist 

 

 

Comments :

Subject is a part of Jindal group and it is one of India’s key steel producers and has a sizeable presence in power generation and mining. It is well-established company having fine track record.

 

For the financial year ended 2014, the company has reported some dip in sales turnover which has resulted into dip in profit of the company.

 

However, the rating takes into consideration JSPL’s healthy business risk profile supported by strong market position in the steel industry and adequate operational base of the company.

 

Trade relations are reported as fair. Payments are reported to be regular and as per commitment.

 

In view being a part of “Jindal Group” backed by experience and resources promoters, the company can be considered good for normal business dealings at usual trade terms and conditions. 

 

NOTES :

Any query related to this report can be made on e-mail: infodept@mirainform.com while quoting report number, name and date.

 

 

ECGC Country Risk Classification List – March 31, 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

CRISIL

Rating

Long Term Rating  = AA-

Rating Explanation

High degree of safety and very low credit risk.

Date

April 10, 2015

 

 

Rating Agency Name

CRISIL

Rating

Short Term Rating = A1+

Rating Explanation

Very strong degree of safety and carry lowest credit risk.

Date

April 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 31-03-2014.

 

 

INFORMATION PARTED BY (PARTIAL DETAILS)

 

Name :

Mr. Rajeev

Designation :

Finance Department

Contact No.:

91-11-41462000

 

 

LOCATIONS

 

Registered Office :

O.P. Jindal Marg, Hisar – 125005, Haryana, India

Tel. No.:

91-1662-222471-84

Fax No.:

91-1662-222476/ 499

E-Mail :

jslhsr@nde.vsnl.net.in

jagdish.patra@jindalsteel.com

tksadhu@ngr.jindalsteel.com

tksadhu@jindalsteel.com

sustainability@jindalsteel.com

Website :

http://www.jindalsteelpower.com

Location :

Owned

 

 

Corporate Office :

Jindal Centre, 12, Bhikaiji Cama Place, New Delhi - 110066, India

Tel. No.:

91-11-26188340-50

Fax No.:

91-11-26161271/ 26170691

E-Mail :

jindlorg@del2.vsnl.net.in

info@jindalsteel.com

 

 

Factory 1 :

Karsia Road, Post Box No.16, Raigarh – 496001, Chhattisgarh, India

Tel. No.:

91-7762-304300/ 227001-05

Fax No.:

91-7762-227022-23/ 227050

 

 

Factory 2 :

13 KM Stone, G.E. Road, Mandir Hasaud, Raipur – 492001, Chhattisgarh, India 

Tel. No.:

91-771-2471205/ 07/ 3054600

Fax No.:

91-771-2471404/ 2471214/ 3054666

 

 

Factory 3 :

Plot No. 751, Near Panchpukhi Chhaka, Simplipada, Angul – 759122, Odisha, India

 

 

Factory 4 :

Balkudra, Patratu, District Ramgarh – 829143, Jharkhand, India

Tel. No.:

91-6553-275724/ 275726

Fax No.:

91-6553-275744

 

 

Factory 5 :

Iron Ore Pellet Plant, Commercial Office, Plot No. 507/365, Barbil Joda –  Highway, Barbil, District Keonjhar – 758035, Odisha, India

 

 

Factory 6 :

TRB Iron Ore Mines, At P.O. Tensa, District Sundergarh – 770042, Orissa, India

Tel. No.:

91-6625-236023/ 24

Fax No.:

91-6625-236022  

 

 

Factory 7 :

Jindal Open Cast Coal Mine, Dhorabatta, Dongamahua, Raigarh – 496001, Chattisgarh, India

 

 

Factory 8 :

201 to 204 Industrial Park SSD, Punjipatra, Raigarh - 496001, Chhattisgarh, India

 

 

Marketing Office :

SCO-24, Sector 26, Madhya Marg, Chandigarh – 160019, India

 

 

Regional Offices :

Located at:

 

·         Gurgaon

·         Ahmedabad

·         Pune

·         Kolkata

·         Patna

·         Visakhapatnam

·         Jaipur

·         Nagpur

·         Chennai

·         Chandigarh

·         Kanpur

·         Ludhiana

·         Jammu

·         Raipur

·         Bhubaneswar

·         Mumbai

 

 

Retail Sales Team :

Located at:

 

·         Gurgaon

·         Ahmedabad

·         Pune

·         Kolkata

·         Patna

·         Chennai

·         Trichy

·         Nagpur

·         Hyderabad

·         Bengaluru

·         Visakhapatnam

·         Cochin

·         Jaipur

·         Shimla

·         Jamshedpur

·         Guwahati

·         Kanpur

·         Ludhiana

·         Chandigarh

·         Jammu

·         Raipur

·         Srinagar

·         Bhubaneshwar

·         Mumbai

 

 

Other Marketing Offices :

Located At:

 

·         Gurgaon

·         Raipur

·         Bhopal

·         Kochi

·         Kolkata

·         Jamshedpur

·         Bangalore

·         Kanpur

·         Mumbai

·         Bhubaneswar

·         Chennai

·         Jaipur

·         Hyderabad

·         Ludhiana

·         Ahmedabad

·         Telangana

·         Nagpur

·         Patna 

·         Ranchi 

·         Visakhapatnam

 

 

International Locations :

Located at:

 

·         China

·         Oman

·         South Africa

·         Indonesia

·         Madagascar

·         Mozambique

·         Zambia

·         Namibia 

·         Dubai

·         Tanzania 

·         Botswana

·         Australia

 

 

DIRECTORS

 

AS ON 31.03.2014

 

Name :

Mrs. Savitri Jindal

Designation :

Chairperson Emeritus

 

 

Name :

Mr. Naveen Jindal

Designation :

Chairman

DIN:

00001523

 

 

Name :

Mr. Ravi Uppal

Designation :

Managing Director and Group CEO

DIN:

00025970

 

 

Name :

Mrs. Shallu Jindal

Designation :

Director

 

 

Name :

Mr. Ratan Jindal

Designation :

Director

 

 

Name :

Mr. K. Rajagopal

Designation :

Group Chief Financial Officer and Director

DIN:

00135666

 

 

Name :

Mr. Dinesh Kumar Saraogi

Designation :

Whole time Director

 

 

Name :

Mr. R.V. Shahi

Designation :

Independent Director

 

 

Name :

Mr. A.K. Purwar

Designation :

Independent Director

 

 

Name :

Mr. Arun Kumar

Designation :

Independent Director

 

 

Name :

Mr. Haigreve Khaitan

Designation :

Independent Director

 

 

Name :

Mr. Hardip Singh Wirk

Designation :

Independent Director

 

 

Name :

Mr. Sudershan Kumar Garg

Designation :

Independent Director

 

 

Name :

Mr. Ajit M. Ingle

Designation :

Independent Director (Nominee Director, IDBI Bank Limited)

 

 

KEY EXECUTIVES

 

Name :

Mr. T. K. Sadhu

Designation :

Company Secretary

 

 

Name :

Mr. Rajeev

Designation :

Finance Department

 

 

SHAREHOLDING PATTERN

 

AS ON 31.03.2015

 

Category of Shareholder

No. of Shares

Percentage of Holding

(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

15581228

1.70

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

476314058

52.06

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

491895286

53.76

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

 

 

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

775470

0.08

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

68033096

7.44

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

68808566

7.52

Total shareholding of Promoter and Promoter Group (A)

560703852

61.29

(B) Public Shareholding

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

 

 

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

14486985

1.58

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

1537209

0.17

http://www.bseindia.com/include/images/clear.gifInsurance Companies

20547206

2.25

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

170753918

18.66

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

207325318

22.66

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

 

 

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

31843324

3.48

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

77915324

8.52

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

2916405

0.32

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

34199577

3.74

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

365238

0.04

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

7980800

0.87

http://www.bseindia.com/include/images/clear.gifForeign Nationals

33480

0.00

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

25820059

2.82

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

146874630

16.05

Total Public shareholding (B)

354199948

38.71

Total (A)+(B)

914903800

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)

914903800

100.00

 

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturer of Iron and Steel Products and also Power Generation.

 

 

Products :

Product Description

 

Item Code No. (ITC Code)

Sponge Iron

72.03

Mild Steel

72.07

 

 

Brand Names :

Jindal Panther™

 

 

Agencies Held :

Not Available

 

 

Exports :

Not Divulged 

 

 

Imports :

Not Divulged 

 

 

Terms :

 

Selling :

L/C

 

 

Purchasing :

L/C

 

 

PRODUCTION STATUS (AS ON 31.03.2014)

 

INSTALLED CAPACITY

 

SR. NO.

PARTICULARS

 

UNIT

INSTALLED CAPACITY

 

AT RAIGARH

 

 

1

Sponge Iron

M.T.

13,70,000

2

Mild Steel

M.T.

30,00,000

3

Ferro Alloys

M.T.

36,000

4

Power

MW

851

5

Hot Metal/Pig Iron

M.T.

16,70,000

6

Rail & Universal Beam Mill

M.T.

7.50.000

7

Plate Mill

M.T.

10,00,000

8

Fabricated Structures

M.T.

1,20,000

9

Cement Plant

M.T.

5,00,000

10

Medium & Light Section Mill

M.T.

6,00,000

 

AT RAIPUR

M.T.

 

11

Steel Casting and Fabrication

M.T.

30,000

12

CF Castings

M.T.

--

 

AT BARBIL

M.T.

 

13

Pelletisation Plant

M.T.

45,00,000

 

AT SATARA (MAHARASHTRA)

M.T.

 

14

Wind Energy

MW

24

 

AT PATRATU

M.T.

 

15

Wire Rod

M.T.

6,00,000

16

Bar Mill

M.T.

10,00,000

 

AT ANGUL

M.T.

 

17

Power

MW

810

18

Fabricated Structures

M.T.

84,000

19

Plate Mill

M.T.

12,00,000

20

Mild Steel

M.T.

15,00,000

 

NOTE:

Installed capacity is as certified by the management and relied upon by the auditors being a technical matter.

 

PRODUCTION

 

SR. NO.

PARTICULARS

 

UNIT

PRODUCTION

1

Sponge Iron

M.T.

13,19,985

2

M.S. Round

M.T.

5,68,120

3

H.C. Ferro Chrome/Silico Mangnese

M.T.

35,008

4

Power

MILLION KWH

5,589

5

Hot Metal/Pig Iron

M.T.

16,69,799

6

Parallel Flange Beam/Columns

M.T.

2,52,054

7

Universal Plate/Coil

M.T.

7,99,888

8

Other Finished Steel Products

M.T.

1,00,911

9

Other Semi Steel Products

M.T.

23,17,659

10

Machineries

M.T.

14,033

11

Wire Rod

M.T.

3,67,265

12

Bars

M.T.

3,79,963

13

Fabricated Structures

M.T.

87,401

14

Cement

M.T.

4,76,197

15

Medium & Light Sections

M.T.

2,53,532

16

Iron Ore Pellets

M.T.

41,48,974

17

Wind Energy

M.T.

54.95

 

 

GENERAL INFORMATION

 

Suppliers :

Reference:

Not Divulged 

Name of the Person (Designation):

Not Divulged 

Contact Number:

Not Divulged 

Since how long known:

Not Divulged 

Maximum limit dealt:

Not Divulged 

Experience:

Not Divulged 

Remark

Not Divulged 

 

 

Customers :

Reference:

Not Divulged 

Name of the Person (Designation):

Not Divulged 

Contact Number:

Not Divulged 

Since how long known:

Not Divulged 

Maximum limit dealt:

Not Divulged 

Experience:

Not Divulged 

Remark

Not Divulged 

 

 

No. of Employees :

Not Divulged 

 

 

Bankers :

Bank Name:

State Bank of India

Branch:

Not Divulged 

Person Name (with Designation):

Not Divulged 

Contact Number:

Not Divulged 

Name of Account Holder:

Not Divulged 

Account Number:

Not Divulged 

Account Since (Date/ Year of A/c Opening):

Not Divulged 

Average Balance Maintained (Optional):

Not Divulged 

Credit Facilities Enjoyed (CC/OD/Term Loan):

Not Divulged 

Account Operation:

Not Divulged 

Remarks:

Not Divulged 

 

·         Punjab National Bank

·         State Bank of Patiala

·         ICICI Bank Limited

·         Canara Bank

·         IDBI Bank Limited

·         Axis Bank Limited

·         HDFC Bank Limited

 

 

Facilities :

SECURED LOANS

31.03.2014

Rs. In Million

31.03.2013

Rs. In Million

LONG TERM BORROWINGS

 

 

9.80% Secured Redeemable Non-Convertible Debentures of Rs. 10,00,000 each

(Privately placed initially with Life Insurance Corporation of India)

10000.000

10000.000

9.80% Secured Redeemable Non-Convertible Debentures of Rs. 10,00,000 each

(Privately placed initially with Life Insurance Corporation of India)

5000.000

5000.000

9.80% Secured Redeemable Non-Convertible Debentures of Rs. 10,00,000 each

(Privately placed initially with SBI Life Insurance Company Limited)

620.000

620.000

8.50% Secured Redeemable Non-Convertible Debentures of Rs. 10,00,000 each

(Privately placed initially with ICICI Lombard General Insurance Company Limited)

0.000

250.000

8.50% Secured Redeemable Non-Convertible Debentures of Rs. 10,00,000 each

(Privately placed initially with ICICI Prudential Life Insurance Company Limited)

0.000

750.000

Term Loans from Banks

96960.000

85642.100

Other Loans from banks

538.000

1499.200

SHORT TERM BORROWINGS

 

 

Loan Repayable on Demand

 

 

Cash Credit from Banks

430.900

5044.900

Other Loans and Advances

 

 

From Banks

13524.200

6968.000

 

 

 

Total

 

127073.100

115774.200

 

LONG TERM BORROWINGS

 

Debentures

 

·         Debentures of Rs 10000.000 Million placed initially with Life Insurance Corporation of India on private placement basis are redeemable at par in 2 equal annual instalments at the end of 9.5 and 10.5 years from the date of respective allotments i.e. Rs.1000.000 Million (12.10.2009), Rs.1500.000 Million (22.10.2009), Rs.1500.000 Million (24.11.2009), Rs.1500.000 Million (24.12.2009), Rs.1500.000 Million (25.01.2010), Rs.1500.000 Million (19.02.2010) and Rs.1500.000 Million (26.03.2010)

The debentures are secured on pari passu charge basis by way of mortgage of immovable properties and hypothecation of movable fixed assets created/to be created on the 6x135 MW Power Plant Project at Angul, Odisha in favour of the Debenture Trustees.

 

·         Debentures of Rs. 5000.000 Million placed initially with Life Insurance Corporation of India on private placement basis are redeemable at par in 2 equal annual instalments at the end of 9.5 and 10.5 years from the date of respective allotments i.e. Rs.1000.000 Million (24.08.2009), Rs.800.000 Million (08.09.2009), Rs.800.000 Million (08.10.2009), Rs.800.000 Million (09.11.2009), Rs. 800.000 Million (08.12.2009) and Rs.800.000 Million (08.01.2010). The debentures are secured on pari-passu charge basis by way of mortgage of immovable properties and hypothecation of movable fixed assets of the Company in favor of the Debenture Trustees.

 

·         Debentures of Rs. 620.000 Million placed initially with SBI Life Insurance Company Limited on private placement basis are redeemable at par in 5 equal annual instalments commencing from the end of 8 years from the date of allotment i.e. 29.12.2009. The debentures are secured on pari passu basis by way of mortgage of immovable properties and hypothecation of movable assets created/to be created on the 6x135 MW Power Plant Project at Angul, Odisha in favour of the Debenture Trustees.

 

·         Debentures of Rs. 250.000 Million placed initially with ICICI Lombard General Insurance Company Limited on private placement basis are redeemable at par at the end of 5 years from the date of allotment i.e. 03.12.2009. The debentures are secured on pari-passu basis by way of mortgage of immovable properties and hypothecation of movable fixed assets of the Company in favor of the Debenture Trustees.

 

·         Debentures of Rs. 750.000 Million placed initially with ICICI Prudential Life Insurance Company Limited on private placement basis are redeemable at par at the end of 5 years from the date of allotment i.e. 03.12.2009. The debentures are secured on pari-passu basis by way of mortgage of immovable properties and hypothecation of movable fixed assets of the Company in favor of the Debenture Trustees.

 

TERM LOANS

 

Security

  • Loans of Rs. 301.300 Million (Previous year Rs. 979.800 Million) are secured by exclusive charge on fixed assets created under Steel expansion project at Raigarh, Chhattisgarh;

 

  • Loans of Rs. 576.200 Million (Previous year Rs. 1040.400 Million) are secured by exclusive charge on fixed assets created under Plate Mill project at Raigarh, Chhattisgarh;

 

  • Loans of Rs.171.400 Million (Previous year Rs. 428.600 Million) are secured by exclusive charge on fixed assets created under 3x25 MW Power Plant at Raigarh, Chhattisgarh;

 

  • Loans of Rs. 34833.800 Million (Previous year Rs. 27994.000 Million) are secured by exclusive charge on fixed assets created/to be created under the DRI project at Angul, Odisha;

 

  • Loans of Rs. 5237.900 Million (Previous year Rs. 6095.900 Million) are secured by exclusive charge on fixed assets created under 2X135 MW Power Plant (Phase-1) at Dongamahua, Raigarh, Chhattisgarh;

 

  • Loans of Rs. 5830.700 Million (Previous year Rs. 6802.500 Million) are secured by exclusive charge on fixed assets created/ to be created under 2X135 MW Power Plant (Phase - 2) at Dongamauha, Raigarh, Chhattisgarh;

 

  • Loans of Rs. 30223.300 Million (Previous year Rs. 31545.500 Million) are secured by exclusive charge on fixed assets created/to be created under 1.6 MTPA Integrated Steel Plant and 1.5 MTPA Plate Mill project at Angul, Odisha;

 

  • Loans of Rs. 14805.000 Million (Previous year Rs. 1,6922.000 Million) are secured/to be secured by exclusive charge on fixed assets created/to be created under 6x135 MW Power Plant Project at Angul, Odisha;

 

  • Loan of Rs. 1716.300 Million (Previous year Rs. 2341.400 Million) are secured by subservient charge on fixed assets of the Company.

 

  • Loan of Rs. 15000.000 Million (Previous year NIL) initially placed with ICICI bank on bilateral basis are redeemable by way of ballooning instalments in two tranches. An amount of Rs. 5000.000 Million shall be repayable in a period of 5 (five) years in 16 (sixteen) quarterly instalment whereas an amount of Rs. 10000.000 Million shall be repayable in a period of 10 (Ten) years in 36 (thirty six) quarterly instalment. Above loans are secured by way of a first pari passu charge on all the Borrower’s present movable Fixed Assets of units located at Patratu, District Ramgarh, Jharkand; G E Road, Mandir Hasaud, Raipur; Punjipatra, Raigarh Chhattisgarh; Bhikaji Cama Place, New Delhi; at Village Pachwad, District Satara, Maharashtra and all movable Fixed Assets (present as well as future) located at Kharsia Road, Post Box No. 16, Raigarh, Chhattisgarh. In addition a first ranking mortgage and pari passu charge on part of immovable property of the Borrower pertaining to its unit located at Kharsia Road, Post Box No. 16, Raigarh and part of the immovable property of the Borrower pertaining to its unit located at 13 KM Stone, G E Road, Mandir Hasaud, Raipur;

 

  • Loan of Rs.3000.000 Million (Previous year NIL) initially placed with HDFC Bank on bilateral basis are redeemable in a period of 8 (eight) years in 28 (twenty eight) quarterly installments. Above loans are secured by way of a fi its located at Pataratu, District Ramgarh, Jharkand; G E Road, Mandir Hasaud, Raipur; Punjipatra, Raigarh Chhattisgarh; Bhikaji Cama Place, New Delhi; at Village Pachwad District Satara, Maharashtra and all movable Fixed Assets (present as well as future) located at Kharsia Road, Post Box No. 16, Raigarh, Chhattisgarh. In addition a first ranking mortgage and pari passu charge on part of immovable property of the Borrower pertaining to its unit located at Kharsia Road, Post Box No. 16, Raigarh and part of the immovable property of the Borrower pertaining to its unit located at 13 KM Stone, G E Road, Mandir Hasaud, Raipur.

 

Repayments and Interest rates for the above Debentures and Term Loans from banks are as follows:

 

Year

2014-15

2015-16

2016-17

2017-18 and Above

Amount (Rs. In Million)

15735.900

14535.800

14715.200

83329.000

 

OTHER LOANS

 

Security

  • Loans of Rs. 538.000 Million (Previous year Rs. 957.500 Million) are Secured by hypothecation by way of First Pari passu Charge over all current assets namely stock of raw materials, semi-finished and finished goods, stores and spares not related to plant and machinery, all export benefits, bills receivables and book debts and second pari passu charge over all other movable fixed assets of the company (both present and future, including plant machinery) to the extent of value of Rs. 4675.000 Million.

 

  • Loans of NIL (Previous year Rs.541.700 Million) are secured by hypothecation of book debts and stocks.

 

SHORT TERM BORROWINGS

 

Cash Credit from Banks

 

  • Secured by hypothecation by way of First Pari passu Charge over all current assets namely stock of raw materials, semi-finished and finished goods, stores and spares not related to plant and machinery, all export benefits, bills receivables and book debts and second pari passu charge over all other movable fixed assets of the company (both present and future, including plant machinery) to the extent of value of Rs. 4675.000 Million. The cash credit is repayable on demand.

 

Other Loans

 

  • Loans of Rs. 2524.200 Million (Previous year Rs. 2014.300 Million) are Secured by hypothecation by way of First Pari passu Charge over all current assets namely stock of raw materials, semi-finished and finished goods, stores and spares not related to plant and machinery, all export benefits, bills receivables and book debts and second pari passu charge over all other movable fixed assets of the company (both present and future, including plant and machinery) to the extent of value of Rs. 4675.000 Million.

 

  • Loans of Rs.5500.000 Million (Previous year Rs. 2953.700 Million) secured by subservient charge by way of Hypothecation of currents assets of the company comprising book debts and stocks.

 

  • Loans of Rs. 5000.000 Million (Previous year Rs. 2000.000 Million) are secured by Subservient charge by way of hypothecation of current assets namely stock of raw materials, semi-finished and finished goods, stores and spares not related to plant and machinery (consumable stores and spares), bills receivables and book debts and all movable current assets up to any amount of Rs. 5000.000 Million.

 

  • Loans of Rs. 500.000 Million (Previous year NIL) are secured by residual charge on all current assets of the company including stock in trade consisting of raw material, finished goods etc.

 

 

 

Banking Relations :
  • Axis Trustee Services Limited, Axis House, 2nd Floor, Bombay Dyeing Mills Compound, Pandurang Budhkar Marg, Worli, Mumbai - 400025, Maharashtra, India
  • Infrastructure Development Finance Company Limited, KRM Tower, 8th Floor, No. 1, Harrington Road, Chetpet, Chennai - 600031, Tamil Nadu, India

 

 

Statutory Auditors :

 

Name :

S.S. Kothari Metha and Company

Chartered Accountants

Address :

145-149, Tribhuwan Complex, Ishwar Nagar, Mathura Road, New Delhi – 110065, India

Tel. No.:

91-11-46708888

Fax No.:

91-11-66628889

E-Mail :

delhi@sskmin.com

 

 

Cost Auditors :

 

Name :

Ramanath Iyer and Company

Cost Accountants

Address :

808, Pearls Business Park, Netaji Subhash Place, Delhi - 110034, India

 

 

Subsidiaries, Step Down Subsidiaries:

 

Subsidiaries

 

·         Jindal Power Limited

·         Jindal Steel Bolivia SA

·         Jindal Steel and Power(Mauritius) Limited

·         Skyhigh Overseas Limited

·         Everbest Infrastructure and Development (w.e.f 01.03.2014)

·         JSPL Mining and Steel Limited (w.e.f 31.12.2013)

 

Subsidiaries of Jindal Power Limited

 

·         Attunli Hydro Electric Power Company Limited

·         Etalin Hydro Electric Power Company Limited

·         Jindal Hydro Power Limited

·         Jindal Power Distribution Limited

·         Ambitious Power Trading Company Limited

·         Jindal Power Transmission Limited

·         Jindal Power Ventures (Mauritius) Limited (w.e.f 18.02.2014)

·         Kamala Hydro Electric Power Company Limited

·         Kineta Power Private Limited (w.e.f 06.09.2013)

·         Uttam Infralogix Limited (w.e.f 07.10.2013)

 

Subsidiaries of Sky high Overseas Limited

 

·         Gasto Liquids lnternational S.A

 

Subsidiaries of Jindal Steel and Power (Mauritius) Limited

 

·         Blue Castle Ventures Limited (with effect from 17.02.2014)

·         Brake Trading (Private) Limited (with effect from 29.07.2013)

·         Enduring Overseas Inc

·         Fire Flash Investments (Private) Limited (with effect from 20.06.2013)

·         Harmony Overseas Limited Jindal Steel and Power Limited

·         Jin Africa Limited

·         Jindal (BVI) Limited

·         Jindal Africa Investments (Private) Limited

·         Jindal Africa Liberia Limited

·         Jindal Africa SA

·         Jindal Botswana (Private) Limited

·         JINDAL Brasil Mineração S/A

·         Jindal Investimentos LDA

·         Jindal Investment Holding Limited.

·         Jindal KZN Processing (Private) Limited (with effect from 01.04.2013)

·         Jindal Madagascar SARL

·         Jindal Mining and Exploration Limited

·         Jindal Mining Namibia (Private) Limited

·         Jindal Steel and Minerals Zimbabwe Limited

·         Jindal Steel and Power (BC) Limited

·         Jindal Steel and Power(Australia) Private Limited

·         Jindal Tanzania Limited

·         Jindal Zambia Limited

·         JSPL Mozambique Minerais LDA

·         Jublient Overseas Limited

·         Landmark Mineral Resources (Private) Limited (with effect from 01.04.2013)

·         Osho Madagascar SARL

·         Panacore Investment Limited, Mauritius

·         PT Jindal Overseas

·         Rolling Hills Resources LLC (under liquidation)

·         Shadeed Iron and Steel L.L.C

·         Sungu Sungu Private Limited (with effect from 14.05.2013)

·         Tablet Blue Trade and Invest (Private) Limited

·         Trans Asia Mining Private. Limited

·         Trans-Atlantic Trading Limited

·         Vision Overseas Limited

·         Wollongong Coal Limited (with effect from 15.11. 2013)

 

Others

 

·         Belde Empreendi Mentos Mineiros Limited, a subsidiary of JSPL Mozambique Minerais LDA

·         Eastern Solid Fuels (Private) Limited, a subsidiary of Jindal Mining and Exploration Limited

·         Ericure (Private) Limited, a subsidiary of Tablet blue Trade and Investment (Private) Limited

·         PTBHI Mining lndonesia, asubsidiary of Jindal Investment Holding Limited

·         PT Sumber Surya Gemilang, a subsidiary of PT.BHI Mining Indonesia

·         PT Maruwai Bara Abadi, a subsidiary of PT.BHI Mining Indonesia

·         Jindal Mining SA (Private) Limited, a subsidiary of Eastern Solid Fuels (Private) Limited

·         Bon-Terra Mining (Private) Limited, a subsidiary of Jindal (BVI) Limited

·         CIC(Barbados) Holding Corp, a subsidiary of Jindal (BVI) Limited

·         CIC Energy (Bahamas) Limited, a subsidiary of Jindal (BVI) Limited

·         Jindal Energy (Botswana) Private Limited, a subsidiary of Jindal (BVI) Limited

·         Jindal Energy (SA) Private Limited, a subsidiary of Jindal (BVI) Limited

·         CIC Transafrica (Barbados) Corp, a subsidiary of Jindal (BVI) Limited

·         Jindal Resources (Botswana) Private Limited, a subsidiary of CIC Transafrica (Barbados) Corp

·         Trans Africa Rail (Private) Limited, a subsidiary of CIC Transafrica (Barbados) Corp

·         Sad-Elec (Private) Limited, a subsidiary of Jindal energy (SA) Private Limited

·         CIC (Barbados) Mining Corp, a subsidiary of CIC (Barbados) Holding Corp

·         CIC (Barbados) Energy Corp, a subsidiary of CIC (Barbados) Holding Corp

·         Meepong Resources (Mauritius) (Private) Limited, a subsidiary of CIC (Barbados) Mining Corp

·         Meepong Resources (Private) Limited, a subsidiary of Meepong Resources (Mauritius) (Private) Limited

·         Meepong Energy (Mauritius) (Private) Limited, a subsidiary of CIC (Barbados) Energy Corp

·         Meepong Energy (Private) Limited, a subsidiary of Meepong Energy (Mauritius) (Private) Limited

·         Meepong Service (Private) Limited, a subsidiary of Meepong Energy (Private) Limited

·         Meepong Water (Private) Limited, a subsidiary of Meepong Energy (Private) Limited

·         Core Ambition Limited, a subsidiary of Panacore Investment Limited

·         Core Forte Limited, a subsidiary of Panacore Investment Limited

·         Core Integrity Limited, a subsidiary of Panacore Investment Limited

·         Core Vision Limited, a subsidiary of Panacore Investment Limited

·         Peerboom Coal (Private) Limited ,a subsidiary of Jindal Africa Investment (Private) Limited

·         Shadeed Iron and Steel Company Limited, a subsidiary of Shadeed Iron and Steel LLC

·         Southbulli Holding Private Limited, a subsidiary of Wollongong Coal Limited

·         Oceanic Coal Resources NL, a subsidiary of Wollongong Coal Limited

·         Wongawilli Coal Private Limited, a subsidiary of Oceanic Coal Resources

 

 

Associates :

·         Angul Sukinda Railway Limited

·         JB Fab lnfra Private Limited

·         Koleko Resources (Private) Limited

·         Nalwa Steel and Power Limited

·         Panacore Shipping Private Limited , Singapore

·         Prodisyne (Private) Limited

·         Thuthukani Coal (Private) Limited

 

 

Joint Ventures:

·         Jindal Synfuels Limited

·         Shresht Mining and Metals Private Limited

·         Urtan North Mining Private Limited

 

 

Enterprises over which Key Management Personnel and their relatives exercise significant influence and with whom transactions have taken place during the year :

·         Abhinandan Investments Limited.

·         Bir Plantations Private Limited

·         Bonanaza Trading Company Private Limited

·         Colorado Trading Company Limited.

·         Gagan Infraenergy Limited.

·         India Flysafe Aviation Limited

·         IndiaVenture Advisors Private Limited.

·         Jindal Coal Private Limited

·         Minerals Management Services (India) Private Limited.

·         Jindal Industries Limited

·         Jindal Reality Private Limited

·         Jindal Rex Exploration Private Limited

·         Jindal Saw Limited.

·         Jindal Stainless Limited.

·         Jindal System Private Limited

·         JSW Energy Limited

·         JSW Steel Limited

·         Nalwa Engineering Company Limited

·         Nalwa Investment Limited

·         Opelina Finance and Investment Limited

·         Rohit Towers Buildings Limited

·         Trishakti Real Estate Private Limited

·         Uttam Vidyut Transmission Private Limited

·         YNO Finvest Private Limited

 

 

CAPITAL STRUCTURE

 

AS ON 31.03.2014

 

Authorised Capital:

No. of Shares

Type

Value

Amount

 

 

 

 

2000000000

Equity Shares

Re.1/- each

Rs. 2000.000 Million

 

 

 

 

 

Issued, Subscribed & Paid-up Capital:

No. of Shares

Type

Value

Amount

 

 

 

 

914885984

Equity Shares

Re.1/- each

Rs. 914.900 Million

 

 

 

 

 

 

a)     Reconciliation of the number of shares outstanding at the beginning and at the end of the reporting period:

 

Equity Shares

Number of Shares

Rs. In Million

Equity Shares outstanding at the beginning of the year

934833818

934.800

Add: Equity Shares issued under Employees Stock Purchase Scheme

11750

0.000

Less: Equity Shares extinguished as per buy back scheme (see note f below)

19959584

20.000

Equity Shares outstanding at the close of the year

914885984

914.900

 

b)    Terms/rights attached to equity shares

 

The Company has only one class of equity shares having par value of Rs.1 per share. Each holder of equity share is entitled to one vote per share. The Company declares dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the Shareholders in the ensuing Annual General Meeting.

 

During the year ended 31st March, 2014, the amount of per share dividend proposed, subject to approval of shareholders in annual general meeting, for distribution to equity shareholders is Rs. 1.50 (Previous Year Rs.1.60)

 

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive assets of the Company. The distribution will be in proportion to the number of equity shares held by the shareholders.

 

c)     Aggregate number of bonus shares issued, shares issued for consideration other than cash and shares bought back during the period of five years immediately preceding the reporting date:

 

During five years immediately preceeding 31st March, 2014, the Company has bought back equity shares as under:

 

During the Year ended

 

No of shares

31st March, 2014

19959584

31st March, 2013

-

31st March, 2012

-

31st March, 2011

-

31st March, 2010

-

31st March, 2009

-

 

 

Total

 

19959584

 

During the year ended 31st March, 2010, the Company allotted 775,651,530 equity shares as fully paid bonus shares by capitalizing securities premium reserve.

 

In addition the Company allotted the following equity shares during the preceding five years under its various Employees Stock Option Schemes / Employee Stock Purchase Scheme

 

During the Year ended

 

Scheme

No. of Shares

31st March, 2014

Employee Stock Purchase Scheme

11750

31st March, 2013

 

-

31st March, 2012

Employee Stock Option Scheme

564787

31st March, 2011

Employee Stock Option Scheme

3034949

31st March, 2010

Employee Stock Option Scheme

929869

31st March, 2009

Employee Stock Option Scheme

691343

 

 

 

Total

 

 

5232698

 

 

d)    Details of shareholders holding more than 5% shares in the Company

 

Name of Shareholders

Number of Shares

% holding

Danta Enterprises Private Limited

62238816

6.80%

Gagan Infraenergy Limited

49709952

5.43%

Opelina Finance and Investment Limited

79838960

8.73%

OPJ Trading Private Limited

187937898

20.51%

Virtuous Tradecorp Private Limited

62238816

6.80%

 

 

As per of the Company, including its register of shareholders/members and other declarations received from shareholders regarding beneficial interest, the above shareholding represents both legal and beneficial ownership of shares.

 

e)     Forfeited shares:

 

Pursuant to the resolution passed at the extra ordinary general meeting dated 4th September, 2009, the Company reclassified the authorized share capital of the Company by cancellation of 10,000,000 Preference Shares of Rs. 100 each and simultaneous creation of 1,000,000,000 fresh Equity Shares of Rs. 1 each and increased the authorized share capital to Rs. 2000.000 Million.

 

“Consequently, the Company had cancelled 2000000 preference shares of Rs. 100 each (Rs. 5 paid up) which were forfeited earlier. Upon cancellation of such shares, the amount of Rs. 10,000,000 was transferred to General Reserve.

 

f)      Buy back of equity shares:

 

In accordance with Section 77 of the Companies Act,1956 and buy back regulations of SEBI, the Company during the financial year 2013-14 bought back and extinguished 19,959,584 number of equity shares of Re. 1 each and created a Capital Redemption Reserve of Rs.20.000 Million out of surplus in the Statement of Profit and Loss. The premium on buy back of Rs.4988.000 Million has been utilized from Securities Premium Account by Rs.1229.600 Million and out of surplus in Statement of Profit and Loss by Rs.3758.400 Million.

 

g)    Employees Stock purchase Scheme

 

In accordance with SEBI(Employee Stock Option Scheme and Employee Stock Purchase Scheme) Guidelines 1999, a) As per resolution passed by the Compensation Committee held on 22.07.2013, during the year on 31.07.2013, 11,750 Equity Shares of Re. 1/- at a premium of Rs. 2015.500 Million were allotted to Mr. Ravi Uppal, Managing Director and Group CEO, as per the provisions of Employee Stock Purchase Scheme 2013 (hereinafter referred to as JSPL ESPS 2013 Scheme), duly approved through postal ballot as on 21.06.2013.

 

h)    As per the resolution passed by Compensation

 

Committee dated 29.08.2013, it is proposed to offer 21000 equity shares of Re. 1/- equivalent of Rs. 5.000 Million at an average price of Rs. 2368.300 Million to Mr. Ravi Uppal, Managing Director and Group CEO as per JSPL ESPS 2013 Scheme. This offer will be for one year from the date of this offer letter as per his entitlement of Employee Stock Option worth Rs. 50 Lacs per annum.

 

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

914.900

934.800

934.800

(b) Reserves & Surplus

129,728.400

122,545.900

107,519.300

(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)

130,643.300

123,480.700

108,454.100

 

 

 

 

(3) Non-Current Liabilities

 

 

 

(a) long-term borrowings

135,207.800

118,609.200

84,939.200

(b) Deferred tax liabilities (Net)

13,454.600

12,149.600

10,678.100

(c) Other long term liabilities

6,951.100

5,605.800

1,412.400

(d) long-term provisions

195.900

209.400

187.200

Total Non-current Liabilities (3)

155,809.400

136,574.000

97,216.900

 

 

 

 

(4) Current Liabilities

 

 

 

(a) Short term borrowings

91,461.300

76,400.200

58,785.400

(b) Trade payables

16,373.400

6,282.000

9,983.100

(c) Other current liabilities

34,549.500

25,843.900

36,615.300

(d) Short-term provisions

32,659.700

29,518.500

24,526.300

Total Current Liabilities (4)

175,043.900

138,044.600

129,910.100

 

 

 

 

TOTAL

461,496.600

398,099.300

335,581.100

 

 

 

 

II.            ASSETS

 

 

 

(1) Non-current assets

 

 

 

(a) Fixed Assets

 

 

 

(i) Tangible assets

181,923.200

141,421.800

115,323.000

(ii) Intangible Assets

670.100

140.100

167.100

(iii) Capital work-in-progress

116,402.500

114,661.200

104,798.600

(iv) Intangible assets under development

229.200

178.200

141.000

(b) Non-current Investments

13,505.200

13,307.200

14,121.700

(c) Deferred tax assets (net)

0.000

0.000

0.000

(d)  Long-term Loan and Advances

16,157.100

12,254.600

9,971.000

(e) Other Non-current assets

6.300

5.500

46.300

Total Non-Current Assets

328,893.600

281,968.600

244,568.700

 

 

 

 

(2) Current assets

 

 

 

(a) Current investments

0.000

0.000

0.000

(b) Inventories

39,362.500

35,985.200

30,513.100

(c) Trade receivables

14,609.600

14,261.300

9,050.600

(d) Cash and cash equivalents

7,620.000

367.700

309.400

(e) Short-term loans and advances

65,436.500

59,435.400

48,062.900

(f) Other current assets

5,574.400

6,081.100

3,076.400

Total Current Assets

132,603.000

116,130.700

91,012.400

 

 

 

 

TOTAL

461,496.600

398,099.300

335,581.100

 

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2014

31.03.2013

31.03.2012

 

SALES

 

 

 

 

 

Income

145,440.200

149,547.000

133,339.500

 

 

Other Income

1,468.500

1,592.800

1,844.800

 

 

TOTAL                                     (A)

146,908.700

151,139.800

135,184.300

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Cost of Materials Consumed

42,657.100

49,433.000

45,298.400

 

 

Purchases of Stock-in-Trade

2,733.100

2,865.800

4,527.500

 

 

Changes in inventories of finished goods, work-in-progress and Stock-in-Trade

3,860.300

(1,482.000)

(3,792.400)

 

 

Employees benefits expense

5,523.200

4,478.900

3,854.400

 

 

Other expenses

53,077.900

54,866.800

42,826.700

 

 

TOTAL                                     (B)

107,851.600

110,162.500

92,714.600

 

 

 

 

 

Less

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

39,057.100

40,977.300

42,469.700

 

 

 

 

 

Less

FINANCIAL EXPENSES                                    (D)

10,836.300

8,207.700

5,367.700

 

 

 

 

 

 

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

28,220.800

32,769.600

37,102.000

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

12,214.400

10,484.600

8,671.900

 

 

 

 

 

 

PROFIT BEFORE TAX (E-F)                              (G)

16,006.400

22,285.000

28,430.100

 

 

 

 

 

Less

TAX                                                                  (H)

3,086.900

6,359.500

7,323.600

 

 

 

 

 

 

PROFIT AFTER TAX (G-H)                                (I)

12,919.500

15,925.500

21,106.500

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

98,847.100

87,470.500

71,120.100

 

 

 

 

 

Less

APPROPRIATIONS

 

 

 

 

 

Transfer to Debenture Redemption Reserve

1,460.000

1,270.000

1,030.000

 

 

Transfer to General Reserve

1,291.900

1,750.000

2,200.000

 

 

Transfer to Capital Redemption Reserve

20.000

0.000

0.000

 

 

Utilized for premium on buy-back of equity shares

3,758.400

0.000

0.000

 

 

Proposed dividend on equity shares

1,372.300

1,495.700

1,494.600

 

 

Corporate tax on proposed dividend

12.200

33.200

31.500

 

BALANCE CARRIED TO THE B/S

103,851.800

98,847.100

87,470.500

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

 

 

 

 

 

F.O.B. Value of Export Sales

28320.200

15985.300

14288.400

 

 

Others

0.000

226.000

0.000

 

TOTAL EARNINGS

28320.200

16211.300

14288.400

 

 

 

 

 

 

IMPORTS

 

 

 

 

 

Raw Material & Fuel

19763.800

25304.500

29521.800

 

 

Components & Spare Parts

2774.300

2487.400

1719.800

 

 

Capital Goods & Others

13459.700

6737.800

8652.200

 

TOTAL IMPORTS

35997.800

34529.700

39893.800

 

 

 

 

 

 

Earnings Per Share (Rs.)

13.89

17.04

22.58

 

 

CURRENT MATURITIES OF LONG TERM DEBT DETAILS

 

Particulars

 

31.03.2014

31.03.2013

31.03.2012

Current Maturities of Long term debt

21383.600

9693.400

13418.600

Cash generated from operations

NA

NA

NA

 

 

 

QUARTERLY RESULTS

 

Particulars

 

30.06.2014

(Unaudited)

30.09.2014

(Unaudited)

31.12.2014

(Unaudited)

 

1st Quarter

2nd Quarter

3rd Quarter

Net Sales

3,5839.100

31969.100

35410.100

Total Expenditure

2,3919.600

22324.400

25410.200

PBIDT (Excl OI)

1,1919.500

9644.700

9999.900

Other Income

218.700

1634.300

346.300

Operating Profit

1,2138.200

11279.000

10346.200

Interest

4283.100

4471.700

5548.700

Exceptional Items

0.000

0.000

(7871.400)

PBDT

7855.100

6807.300

(3073.900)

Depreciation

4154.800

4439.900

4593.200

Profit Before Tax

3700.300

2367.400

(7667.100)

Tax

637.600

(505.400)

(971.100)

Provisions and contingencies

0.000

0.000

0.000

Profit After Tax

3062.700

2872.800

(6696.000)

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

3062.700

2872.800

(6696.000)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2014

31.03.2013

31.03.2012

Net Profit Margin

(PAT/Sales)

(%)

8.88

10.65

15.83

 

 

 

 

 

Operating Profit Margin

(PBIDT/Sales)

(%)

26.85

27.40

31.85

 

 

 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)

4.83

8.26

13.13

 

 

 

 

 

Return on Investment (ROI)

(PBT/Networth)

 

0.12

0.18

0.26

 

 

 

 

 

Debt Equity Ratio

(Total Debt /Networth)

 

1.90

1.66

1.45

 

 

 

 

 

Current Ratio

(Current Asset/Current Liability)

 

0.76

0.84

0.70

 

 

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

934.800

934.800

914.900

Reserves & Surplus

107519.300

122545.900

129728.400

Net worth

108454.100

123480.700

130643.300

 

 

 

 

long-term borrowings

84939.200

118609.200

135207.800

Short term borrowings

58785.400

76400.200

91461.300

Current Maturities of Long Term Debt

13418.600

9693.400

21383.600

Total borrowings

157143.200

204702.800

248052.700

Debt/Equity ratio

1.449

1.658

1.899

 

 

 

 

 

 

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

133,339.500

149,547.000

145,440.200

 

 

12.155

(2.746)

 

 

 

 

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

133,339.500

149,547.000

145,440.200

Profit

21,106.500

15,925.500

12,919.500

 

15.83%

10.65%

8.88%

 

 

 

 

LOCAL AGENCY FURTHER INFORMATION

 

 

Sr. No.

Check List by Info Agents

Available in Report

(Yes / No)

1]

Year of Establishment

Yes

2]

Locality of the firm

Yes

3]

Constitutions of the firm

Yes

4]

Premises details

No

5]

Type of Business

Yes

6]

Line of Business

Yes

7]

Promoter's background

No

8]

No. of employees

No

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

Yes

20]

Export / Import details (if applicable)

No

21]

Market information

----------

22]

Litigations that the firm / promoter involved in

Yes

23]

Banking Details

Yes

24]

Banking facility details

Yes

25]

Conduct of the banking account

----------

26]

Buyer visit details

----------

27]

Financials, if provided

Yes

28]

Incorporation details, if applicable

Yes

29]

Last accounts filed at ROC

Yes

30]

Major Shareholders, if available

Yes

31]

Date of Birth of Proprietor/Partner/Director, if available

No

32]

PAN of Proprietor/Partner/Director, if available

No

33]

Voter ID No of Proprietor/Partner/Director, if available

No

34]

External Agency Rating, if available

Yes

 

 

LITIGATION DETAILS

 

IN THE HIGH COURT OF DELHI AT NEW DELHI

O.M.P.(I) 182/2015

 

SARA INTERNATIONAL PRIVATE LIMITED..... PETITIONER THROUGH: MR. VIRENDRA GANDA, SENIOR ADVOCATE WITH MR. GYANENDRA KUMAR, MR. VIPUL GANDA, MR. ABHIJIT MITTAL AND MS. SHREYA, ADVOCATES.

 

VERSUS

 

JINDAL STEEL AND POWER LIMTED AND ORS. ..... RESPONDENTS THROUGH: MR. RAJIV NAYAR, SENIOR ADVOCATE WITH MR. RAJAT JARIWAL AND MS. ANISHA SOMAL, ADVOCATES FOR RESPONDENT NO.1. MR. ARUN KATHPALIA AND MR. RAJNISH SINHA, ADVOCATES FOR RESPONDENTS 2 AND 3.

 

CORAM: JUSTICE S. MURALIDHAR

 

ORDER

23.04.2015

 

IA NO. 8294/2015 (FOR EXEMPTION)

 

1. EXEMPTION ALLOWED SUBJECT TO ALL JUST EXCEPTIONS.

2. THE APPLICATION IS DISPOSED OF.

 

O.M.P.(I) 182/2015

 

3. NOTICE. MR. RAJAT JARIWAL, LEARNED COUNSEL FOR RESPONDENT NO.1 AND MR. ARUN KATHPALIA, LEARNED COUNSEL FOR RESPONDENT NOS. 2 AND 3 ACCEPT NOTICE. REPLIES, IF ANY, BE FILED WITHIN FOUR WEEKS. REJOINDER THERETO, IF ANY, BE FILED BEFORE THE NEXT DATE.

 

4. LIST ON 14TH JULY 2015.

 

APRIL 23, 2015/DN

                                                                                                                   S. MURALIDHAR, J

 

 

 

 

OVERVIEW

 

Subject is one of the India’s leading steel producers with significant presence in sector like mining and power generation. It is listed on the National Stock Exchange of India and Bombay Stock Exchange in India. Its business is spread across India and overseas. The corporate office is situated in New Delhi and the manufacturing plants in India are in the states of Chhattisgarh, Odisha, Jharkhand etc. The Company has global presence in Australia, Botswana, China, Dubai, Indonesia, Liberia, Mauritania, Mauritius, Mozambique, Madagascar, Namibia, South Africa, Sultanate of Oman, Tanzania and Zambia. There are several business initiatives running simultaneously across continents.

 

 

 

OPERATIONAL REVIEW

 

The Company has, on a consolidated basis, achieved an aggregate income of Rs. 200696.700 Million compared to previous year’s Rs. 199432.000 Million. Profit before tax is Rs. 25120.100 Million in 2013-14 as compared to Rs. 38334.500 Million in 2012-13. Profit after tax is Rs. 18938.000 Million in 2013-14 as compared to Rs. 29116.200 Million in 2012-13. The Reserves and Surplus have touched Rs. 225190.500 Million.

 

Sponge Iron

 

The Company produced 1319985 MT of Sponge Iron during the year as against previous year’s production of 1319976 MT and achieved a capacity utilization of about 96.35%.

 

Steel

 

The production of steel products during the year under report, compared to previous year is given below:

 

Sr.

No.

Product

Production in MTs

 

 

(2013-14)

(2012-13)

1

Finished steel products

21,53,613

21,43,750

2

Semi steel products

28,85,779

30,23,974

 

 

Pellet

 

The Company produced 4148974 MT of pellets during the year as against 4042025 MT in the previous year.

 

Power

 

The Company generated 5,643.95 million Kwh of power during the year as against last year’s 6,027.82 million Kwh of power.

 

Raipur Unit

 

Raipur Unit produced 1,791 MT of castings and has done machining of 14,033 MT as against 1,933 MT and 12,510 MT respectively in the previous year.

 

Mining

 

The production of calibrated iron ore at captive mine at Tensa in Odisha was 5.41 lacs MT as against previous year’s production of 5.64 lacs MT. Coal production at captive mine was 59.99 lacs MT and was close to last year’s production.

 

 

MANAGEMENT DISCUSSION AND ANALYSIS

 

GLOBAL ECONOMY

 

The year 2013 witnessed changing global dynamics with a renewed focus on the developed nations. The developed economies gathered momentum even as consumer demand recovered modestly in the US and Japan. However, emerging economies experienced external and localised vulnerabilities and market turmoil.

 

There has been a reduction in the fiscal cliff in the US recently, coupled with encouraging economic data about the region’s housing and employment scenario. It is likely that structural policies across emerging nations like China and India will bolster the investment climate. Owing to these developments, globally economies are estimated to grow at an average rate of 3.6% in 2014 compared to 3% in 2013.

 

 

INDIAN ECONOMY

 

India faced significant portfolio equity outflows in FY 2013-14 due to the US announcement for withdrawal of the fiscal stimulus. On the industry front, sluggishness in the Indian economy continued with contraction in the industrial output and services sector. High inflation and high interest rates affected all economic sectors.

 

Inflation has, since then, moderated, along with an improvement in the fiscal and current account deficit. A good monsoon also enhanced rural demand. The government’s clearance of stalled infrastructure projects in the last quarter of FY 2013-14 has improved business sentiments. The outlook for FY 2014-15 is positive as order books are being filled up and iron ore projects have been unlocked. Going forward, it is estimated that GDP will grow by 5.5% in FY 2014-15 compared to 4.7% in FY 2013-14.

 

Any external vulnerabilities should be reduced considerably due to an improved export environment, easing of supply bottlenecks to shrink import demand, and a lower fiscal deficit. Exchange flexibility will be necessary only if capital account pressures begin to re-emerge. Removing barriers to investment should be the new government’s top-most priority.

 

 

GLOBAL STEEL INDUSTRY

 

SUPPLY AND DEMAND

 

World crude steel production stood at 1,607 million tonnes (MT) for the year 2013, higher by 3.5% compared to 2012. Supply increased from Asia and the Middle East, whereas crude steel production in other regions decreased in 2013 compared to 2012.

 

Global steel demand rose by around 3.6% in 2013 compared to 2012 due to increased infrastructural and construction related activity, especially in Asia. China’s global steel demand grew by 6.1% in 2013 compared to 2.9% in 2012. The demand for steel for the rest of the world in 2013 remained much lower than expected. The majority of demand came from the emerging economies (+4.9%), whereas demand in the EU continued to contract (–3.8%). There was, however, a minor rise in apparent steel usage in North America (+0.2%) [Source: World Steel, October 2013 and World Steel Association, May 2014].

 

The crude steel capacity utilisation ratio for 65 countries in March 2014 was 79.0%, which is 0.4% lower than that for March 2013.

 

The steel producers are facing a problem of overcapacity, besides cost concerns, repair and maintenance and labour costs. The producers have invested capital in upstream raw material security and reduced costs with considerable vertical integration in 2013-14. The steelmakers have also bought financial instruments for hedging and margin protection.

 

The operational efficiencies and flexibility of production across the value chain is another way to tame the volatility. Steelmakers are now expected to produce high-end differentiated products to capture a greater share of the downstream value chain.

 

In 2013, global seaborne iron ore demand increased by about 9% Year on Year due to strong Chinese steel production. Global prices averaged US$133 per tonne during the year. However, an oversupplied iron ore market is slowly expected to move from a deficit of over 8% of seaborne demand in 2013 to a likely surplus of almost 9% by 2018.

 

The downward pressure on iron ore and coking coal prices is expected, going ahead. However, global trade in iron ore and coking coal is dominated by some large players who can lower production to influence prices.

 

 

OUTLOOK

 

Steel usage is expected to grow by 3.1% to 1,527 MT in 2014. It is estimated that world steel demand will grow by a further 3.3% in 2015 to reach 1,576 MT. A continued steady recovery in advanced economies and improvement in emerging economies is further expected in 2015. However, downside risks remain in the form of the Euro zone’s fragile economic recovery, structural constraints in emerging economies and China’s debt and real estate concerns.

 

In 2013, world steel demand grew at 3.6% because of the strengthened recovery in the US markets in the second half of the year. Steel demand in the Euro zone is likely to rise with a 4.5% increase in steel usage in Germany in 2014, 2.6% in Italy, 1.0% in France and 3.0% in Spain.

 

India’s steel demand is estimated to grow by 3.3% to 76.2 MT in 2014-15, following 1.8% growth in 2013-14. This is due to improved sentiments for the construction and manufacturing sectors, even though structural issues and persistent inflation continue to pose challenges.

 

Overall steel demand in developed economies will be above 2% in 2014 and 2015, while that in developing economies will continue to grow faster [Source: World Steel Association, Short

Range Outlook, 2014-15].

 

 

INDIAN STEEL INDUSTRY

 

In 2013-14 crude steel production was 81.5 MT and consumption was 73.9 MT [Source: JPC]. Steel production is expected to grow at 5.2% and demand estimated to grow at over 3%.

 

The industry has integrated as well as standalone steel players in the market. Capacity additions are being planned in the industry. The constrained iron ore availability in 2013-14 affected some players. Exports surged due to a depreciating currency. Steel exports grew by 4.2%, while steel imports crashed by 31.3% during the period [Source: JPC February 2014].

 

 

OPERATIONAL REVIEW

 

The Company operates the largest coal-based sponge iron plant in the world. It has an installed capacity of 3 MTPA of crude steel and is operating a 0.6 MTPA medium and light structural mill, a 1.0 MTPA plate mill and a 0.75 MTPA rail and universal Beam mill at Raigarh in Chhattigarh. It is also operating a 1.5 MTPA steel melting shop and a 1.2 MTPA plate mill to produce plates up to 5.00 metres in width at Angul in Odisha. The Company also has a 0.6 MTPA wire rod mill and a 1.0 MTPA capacity bar mill at Patratu in Jharkhand. It has 1,685 MW of power generation capacity i.e. 851 MW in Raigarh (Chhattisgarh), 810 MW in Angul (Odisha) and 24 MW wind power in Satara (Maharashtra). The Company, through its subsidiary, operates a 1.5-MTPA gas-based Hot Briquetted Iron (HBI) plant and has completed a 2 MTPA Steel Melting Shop in Oman (Middle East).

 

The Company produces the world’s longest (121-metre) rails and it is the first in the country to manufacture large-size parallel flange beams. The Company also has the distinction of producing high strength angle iron for transmission towers and high strength earthquake-resistant construction TMT rebars. The Company has recently launched a new retail brand, “Jindal Panther™” in India. The first product launched under the brand is Jindal Panther™ TMT Rebars.

 

 

INDEX OF CHARGES

 

S.NO.

CHARGE ID

DATE OF CHARGE CREATION/MODIFICATION

CHARGE AMOUNT SECURED

CHARGE HOLDER

ADDRESS

SERVICE REQUEST NUMBER (SRN)

1

10547420

06/02/2015

5,000,000,000.00

ICICI BANK LIMITED

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

C42667832

2

10544612

31/12/2014

6,000,000,000.00

STATE BANK OF INDIA

CAG BRANCH, JAWAHAR VYAPAR BHAWAN, 11TH AND 12TH FLOOR, 1, TOLSTOY MARG, NEW DELHI - 110001, INDIA

C41229204

3

10541962

31/12/2014

10,000,000,000.00

YES BANK LIMITED

48, NYAYA MARG, CHANAKYAPURI, NEW DELHI - 110021, INDIA

C39914171

4

10540233

29/12/2014

5,000,000,000.00

AXIS BANK LIMITED

13TH FLOOR, STATESMAN HOUSE, 148, BARAKHAMBA ROAD, NEW DELHI - 110001, INDIA

C38982104

5

10543093

29/12/2014

5,000,000,000.00

HDFC BANK LIMITED

HDFC BANK HOUSE, VATIKA ATRIUM, A-WING, 2ND FLOOR, 
GOLF COURSE ROAD, SECTOR-53, GURGAON - 122002, HARYANA, INDIA

C40476665

6

10501763

06/05/2014

15,000,000,000.00

STATE BANK OF INDIA

STATE BANK OF INDIA CAG BRANCH, 12TH FLOOR, JAWAH 
AR VYAPAR BHAWAN 1, TOLSTOY MARG, NEW DELHI - 110001, INDIA

C06004147

7

10487119

27/06/2014 *

10,000,000,000.00

HDFC BANK LIMITED

HDFC BANK HOUSE SENAPATI BAPAT MARG, LOWER PAREL W, MUMBAI - 400013, MAHARASHTRA, INDIA

C15409733

8

10487226

29/03/2014 *

15,000,000,000.00

ICICI BANK LIMITED

ICICI BANK LIMITED, ALKAPURI, BARODA - 390015, GUJARAT, INDIA

C03329216

9

10366407

14/02/2014 *

35,030,000,000.00

AXIS TRUSTEE SERVICES LIMITED

AXIS HOUSE, 2ND FLOOR, BOMBAY DYEING MILLS COMPOUND, PANDURANG BUDHKAR MARG, WORLI, MUMBAI - 400025, MAHARASHTRA, INDIA

B98001043

10

10363335

13/06/2012

8,100,000,000.00

INFRASTRUCTURE DEVELOPMENT FINANCE COMPANY LIMITED

KRM TOWER, 8TH FLOOR, NO. 1, HARRINGTON ROAD, CHETPET, CHENNAI - 600031, TAMIL NADU, INDIA

B42761205

 

* Date of charge modification

 

 

UNSECURED LOANS:

 

PARTICULARS

31.03.2014

Rs. In Million

31.03.2014

Rs. In Million

LONG TERM BORROWINGS

 

 

Term Loans

 

 

Debenture

3000.000

0.000

Loan from Banks

 

 

Other Loans

8758.900

4280.900

Others Loans and Advances

 

 

External Commercial Borrowings

10330.900

10567.000

SHORT TERM BORROWINGS

 

 

From Banks

 

 

Short Term Loans

30513.000

18079.900

Other Loans

7442.600

17612.400

Commercial Papers

15000.000

11250.000

Loans and advances from related parties

 

 

Inter Corporate Deposits (from subsidiary)  

24550.600

17385.600

Fixed Deposits from Public

0.000

59.400

 

 

 

Total

99596.000

79235.200

 

LONG TERM BORROWINGS

 

Repayments and Interest rates for the above unsecured debentures and External Commercial Borrowings are as follows:

 

Year

2014-15

2015-16

2016-17

2017-18 and Above

Amount (Rs. In Million)

1287.400

7297.400

4287.400

1746.100

 

The interest rate for the unsecured debentures is 9.63% p.a. The interest rate for the above term External Commercial Borrowings varies from 0.5730 % to 2.4829 % p.a.

 

 

 

 

UNAUDITED FINANCIAL RESULTS FOR THE QUARTER AND NINE MONTHS ENDED ON 31.12.2014

 

[RS. IN MILLION]

 

Particulars

3 Months Ended

9 Months Ended

 

31.12.2014

[Unaudited]

30.09.2014

[Unaudited]

31.12.2014

[Unaudited]

 

 

 

 

Net Sales / Income from Operations (net of excise duty)

36200.800

34135.200

105576.000

Captive sales for own projects

(1196.300)

(2306.800)

(5759.100)

Other Operating Income

405.600

140.700

800.800

Total Income from Operations (net) [1(a) + 1(b)]

35410.100

31969.100

100617.700

Expenses

 

 

 

Cost of materials consumed

12077.300

9898.600

32040.000

Purchase of stock-in-trade

763.000

832.300

2250.400

Change in inventories of finished goods, work-in-progress and stock-in-trade

(1136.600)

(183.900)

(1822.100)

Employee benefits expenses

1802.300

1628.300

4812.900

Depreciation and amortisation expenses

4593.200

4439.900

13187.900

Stores & Spares consumed

3689.100

4048.200

12223.500

Foreign Exchange

3556.300

2457.300

8464.400

Power & Fuel

(258.700)

(1382.500)

(1985.800)

Other Expenditure

5855.100

5950.400

17188.200

Cost of Octave Sales

(1196.300)

(2306.800)

5759.100)

Total expenses

29744.700

125381.800

80600.800

Profit /(Loss) from Operations before other income, finance costs and exceptional items

5665.400

6587.300

20017.400

Other Income

87.600

251.800

558.100

Profit / (Loss) from ordinary activities before finance costs and Exceptional Items

5753.000

6839.100

20575.500

Finance costs

5548.700

4471.700

14303.500

Profit / (Loss) from ordinary activities after finance cost but before exceptional Items

204.800

2367.400

6272.000

Exceptional Items

7871.400

0.000

7871.400

Profit / (Loss) from ordinary activities before tax

(7667.100)

2367.400

(1599.400)

Tax expense

(971.100)

(505.400)

(838.900)

Net Profit / (Loss) from ordinary activities after tax

(6696.000)

2872.800

(760.500)

Extraordinary item

-

-

-

Net Profit/ (Loss) for the period

(6696.000)

2872.800

(760.500)

Share of profit / (loss) of associates

-

-

-

Minority interest

-

-

-

Other Related Items

-

-

-

Net Profit / (Loss) after taxes, minority interest and shares of profit / (loss) of associates

(6696.000)

2872.800

(760.500)

Cash Profit

(3049.500)

9445.300

14250.900

Paid up equity share capital (Face Value Re. 1/- per share)

914.900

914.900

914.900

Paid up debt capital of the company

 

 

 

Reserves excluding Revaluation Reserves as per balance sheet of previous accounting year

 

 

 

Debenture Redemption Reserves

 

 

 

Earnings Per Share (EPS) (before Extraordinary items) (of Re. 1/- each) (not annualised):

 

 

 

Basic

(7.32)

3.14

(0.83)

Diluted

(7.32)

3.14

(0.83)

Earnings Per Share (EPS) (after Extraordinary items) (of Re. 1/- each) (not annualised):

 

 

 

Basic

(7.32)

(3.14

(0.83)

Diluted

(7.32)

(3.14

(0.83)

 

 

Particulars

31.12.2014

[Unaudited]

30.09.2014

[Unaudited]

31.12.2014

[Unaudited]

A. Particulars of shareholding

 

 

 

1. Public Shareholding

 

 

 

- Number of shares

355911364

361596452

355911364

- Percentage of shareholding

38.90

39.52

38.90

2. Promoters and Promoters group Shareholding-

 

 

 

a) Pledged /Encumbered

 

 

 

Number of shares

64855263

40448

64855263

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

11.60

0.01

11.60

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

7.09

0.00

7.09

 

 

 

 

b) Non  Encumbered

 

 

 

Number of shares

494137173

553266900

494137173

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

88.40

99.99

88.40

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

54.01

60.48

54.01

 

 

 

 

B. Investor Complaints

 

 

Pending at the beginning of the quarter

0

 

Receiving during the quarter

5

 

Disposed of during the quarter

5

 

Remaining unreserved at the end of the quarter

0

 

 

 

SEGMENT WISE REPORTING OF REVENUE, RESULTS AND CAPITAL EMPLOYED FOR THE QUARTER AND NINE MONTHS ENDED ON 31.12.2014

 

Particulars

31.12.2014

[Unaudited]

30.09.2014

[Unaudited]

31.12.2014

[Unaudited]

 

 

 

 

Segment Revenue

 

 

 

a) Iron & Steel

32784.100

30389.700

94487.800

b) Power

7772.400

6131.700

19742.600

c) Others

538.500

352.600

1456.100

Sub Total

41095.000

36874.000

115686.500

Less: Inter-segment Revenue

5684.900

4904.900

15068.800

Net Sales/Income from Operations

35410.100

31969.100

100617.700

 

 

 

 

Segment Results (Profit(+)/Loss(-) before Tax and interest from each segment)

 

 

 

a) Iron & Steel

3860.900

4673.000

14029.100

b) Power

3109.100

2447.200

9013.600

c) Others

9.800

(123.300)

(16.800)

Sub Total

6979.700

6996.900

23025.900

Less : Finance Cost (net)

5548.700

4471.700

14303.500

Other un-allocable expenditure (net off Un-allocable income)

1226.700

157.800

2450.400

Exceptional Items

7871.400

0.000

7871.400

Total Profit Before Tax

(7667.100)

2367.400

(1599.400)

 

 

 

 

Capital Employed (Segment Assets - Segment Liabilities)

 

 

 

a) Iron & Steel

265939.200

248662.100

265939.200

b) Power

57052.400

56761.400

57052.400

c) Others

4695.300

5127.200

5695.300

d) Unallocated

(200727.700)

(176648.300)

(200727.700)

Total Segment Capital Employed

126959.200

133902.400

126959.200

 

NOTES:

 

1)     During the quarter, one of the subsidiaries of the Company has acquired an additional 7.65% stake in Wollongong Coal Limited, Australia, for AUD 49.60 Million (Rs. 2738.000 Million).

 

2)     In accordance with the companies Act 2013, the Company and its subsidiaries/Joint Ventures have revised the useful life of their fixed assets to comply with the useful life as mentioned in Schedule II of the said Act. As per the transitional provisions the Company and its subsidiaries/joint ventures have adjusted Rs. 1537.200 Million and Rs.1815.000 Million from the opening balance of retained earnings from the standalone and consolidated financial results respectively. Had the Company and its subsidiaries/joint ventures continue to follow earlier useful lifes the depreciation expense for the quarter would have been by lower by Rs. 309.100 Million (Rs. 1187.500 Million for nine months period ended 31 December, 2014) and Rs. 153.200 Million (Rs. 717.000 Million for nine months period ended 31 December, 2014) in the standalone and consolidated Financials respectively.

 

3)     The Hon'ble Supreme Court of India by its Order dated 24 September 2014 has cancelled number of coal blocks allocated to various entities which include nine coal blocks consisting of three operational and six under development allotted to the Company and its group companies by Ministry of Coal, Government of India and directed to pay an additional levy of Rs. 295 per MT on gross coal extracted from the operational mines from 1993 to till date. The final hearing of the Hon'ble Supreme Court of India for review petition filed by the Company and its group companies towards order relating to challenging cancellation of coal blocks is still pending.

 

  1. The Company has paid such levy on coal extracted during the period from 1993 to 24 Sep 2014 of Rs. 30892.200 Million (including Rs. 10994.200 Million by a subsidiary). The management based on legal opinion has accounted for Rs. 17936.300 Million (including Rs. 10247.200 Million by a subsidiary) computed on net extraction (run of mines less shale, rejects and ungraded middling) of coal by the Company and subsidiary company during the current quarter. The said amount has been shown as exceptional item in the result and balance amount of Rs. 12955.900 Million has been shown as recoverable from the Government Authority since the entire amount of additional levy has been paid under protest.

  2. Consequent to above, The Company has also provided Rs 615.200 Million (including Rs. 432.900 Million by a subsidiary) as levy against coal extracted (run of mines less shale, rejects and ungraded middling) from 25th September 2014 till 31st December 2014. The said amount has also been shown as exceptional item in the result.

  3. The Company and its group companies having book value of investment made in mining assets including land, infrastructure and clearance etc. of Rs. 8766.400 Million. The difference if any, shall be accounted for when the final compensation is received pursuant to directive vide letter dated December 26, 2014 given by the Ministry of Coal on such mines.

 

4)     The consolidated net trade receivable of the group includes disputed debts receivable by an overseas subsidiary Company of AUD 61 Million (Rs. 3169.300 Million) which is due from the former ultimate parent company and its associated entities. No provision for such disputed debts has been made as the Company is confident that the above amount is fully recoverable based on legal advice obtained.

 

5)     Previous period/year figures have been regrouped and reclassified to make them comparable.

 

6)     The above unaudited results were reviewed by the audit committee and have taken on record by the Board of Directors in their meeting held on 3rd February 2015.

 

7)     The above unaudited results have been reviewed by auditors as per clause 41 of the listing agreement.


# Cash Profit = Profit after Tax + Deferred Tax + Depreciation and Amortization expenses.

 

 

CONTIENT LIABILITIES:

 

PARTICULARS

31.03.2014

(Rs. In Million)

31.03.2013

(Rs. In Million)

Guarantees, Undertakings and Letter of Credit

 

 

a) Guarantees issued by the Company’s Bankers on behalf of the Company

8229.000

4300.500

b)Letter of credit opened by banks

4741.300

7867.200

c) Corporate guarantees/undertakings issued on behalf of third parties.

68274.800

50441.500

Statutory Demands

 

 

d) Disputed Excise Duty and Other demands

14320.000

9371.700

e) Income Tax demands where the cases are pending at various stages of

appeal with the authorities

5558.400

1919.400

f) Bonds executed for machinery imports under EPCG Scheme

24702.200

30814.100

Others

 

 

g) Future liability on account of lease rent for unexpired period

100.500

100.500

h) Claims against the company, not acknowledge as debt

781.300

361.600

i) Uncalled liability towards partly paid up shares

601.500

732.700

j) The company has provided a shortfall undertaking to fund the debt service reserve account (DSRA) of a subsidiary. As the subsidiary continues to maintain succeeding 3 months interest and principle in DSRA, hence the company does not have any present liability to fund the said account

 

 

 

FIXED ASSETS:

 

Tangible Assets

·         Land

·         Live Stock

·         Building

·         Plant and Equipment

·         Electrical Fittings

·         Computer

·         Vehicles

·         Air Craft (GE Lease)

·         Air Craft (Owned)

·         Office equipment

·         Furniture and Fixture

 

Intangible Assets

·         Computer software

·         Copyrights, and patents and other intellectual property rights, services and operating rights

·         Design and Drawings

·         Licenses and franchise

 

 

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 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.63.69

UK Pound

1

Rs.99.73

Euro

1

Rs.71.90

 

 

INFORMATION DETAILS

 

Information Gathered by :

NYA

 

 

Analysis Done by :

KRN

 

 

Report Prepared by :

MTN

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

8

PAID-UP CAPITAL

1~10

8

OPERATING SCALE

1~10

9

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

8

--PROFITABILITY

1~10

6

--LIQUIDITY

1~10

8

--LEVERAGE

1~10

9

--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

 

72

 

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.