MIPL-Logo

3decades

 

MIRA INFORM REPORT

 

 

Report No. :

492718

Report Date :

16.02.2018

 

 

 

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) :

31.03.2017

 

 

Date of Incorporation :

15.03.1994

 

 

Com. Reg. No.:

11-152925

 

 

Capital Investment / Paid-up Capital :

INR 10061.715  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 :

The Subject is primarily engaged in the Business of manufacture and sale of iron and steel products. (Registered Activity)

 

 

No. of Employees :

11848 (Approximately)

 

 

RATING & COMMENTS

(Mira Inform has adopted New Rating mechanism w.e.f. 23rd January 2017)

 

MIRA’s Rating :

A 

 

Credit Rating

Explanation

Rating Comments

A

Acceptable Risk

Business dealings permissible with moderate risk of default

 

Status :

Satisfactory

 

 

Payment Behaviour :

Slow

 

 

Litigation :

Exist

 

 

Comments :

Subject is a part of the JSW Group, which in turn is a part of O.P Jindal group. The JSW Group has presence across various sectors, such as steel, energy, minerals, ports and infrastructure, cement etc.

 

The company in engaged in manufacturing of iron and steel products. It offers mild steel and rolled coils, plates and sheets, tolerances and downstream products include not rolled plates, cold rolled close annealed and galvanized sheets and coils.

 

As per the financials of March 2017, the company has registered a growth of 39.29% in its revenue as compared to its previous year’s revenue and has reported good profit margin of 6.28% under review.

 

Rating takes into consideration the company’s established track record of business operations marked by sound net worth base along with average debt coverage indicators and good liquidity position.

 

Rating continues to derive strength from company’s significant presence in the Indian Steel Industry, wide product offering with focus in enriching product mix and well experienced management team.

 

Share price is quoted high on Stock Exchanges. (Shares are traded at a price of INR 309.60 against its face value of INR 1 on BSE.

 

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

 

As per quarterly financials of September 2017, the company has achieved a sound revenue of 164,530 million and has reported good profit margin of 6.84%.

 

Payments seems to be slow.

 

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

 

NOTES :

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

 

 

ECGC Country Risk Classification List

 

Country Name

Previous Rating

(30.06.2017)

Current Rating

(30.09.2017)

India

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low Risk

 

A2

Moderately Low Risk

 

B1

Moderate Risk

 

B2

Moderately High Risk

 

C1

High Risk

 

C2

Very High Risk

 

D

 

 

EXTERNAL AGENCY RATING

 

Rating Agency Name

CARE

Rating

Long Term Rating = AA-

Rating Explanation

High degree of safety and very low credit risk.

Date

28.09.2017

 

Rating Agency Name

CARE

Rating

Short Term Rating = A1+

Rating Explanation

Very strong degree of safety and carry lowest credit risk.

Date

28.09.2017

 

 

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 31-03-2016.

 

 

BIFR (Board for Industrial & Financial Reconstruction) LISTING STATUS

 

Subject’s name is not listed as a Sick Unit in the publicly available BIFR (Board for Industrial & Financial Reconstruction) list as of 16.02.2018

 

IBBI (Insolvency and Bankruptcy Board of India) LISTING STATUS

 

Subject’s name is not listed in the publicly available IBBI (Insolvency and Bankruptcy Board of India) list as of report date.

 

 

INFORMATION DENIED

 

MANAGEMENT NON-COOPERATIVE: TEL. NO.: 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

lancy.varghese@jsw.in

rajesh.choraria@jsw.in

Website :

http://www.jsw.in

 

 

Factory:

Gat No 361/362, Takwe Budrak, Pune - 410501 Maharashtra, India

 

 

Corporate Office:

The Enclave, Maratha Udhog Bhavan, New Prabhadevi Road, Prabhadevi,
Mumbai-400025, Maharashtra, India

Tel No. :

91-22-67838000

Fax No. :

91-22-24320740

 

 

Marketing Office:

Grande Palladium, 6th Floor, 175, CST Road, Kalina Santacruz (East), Mumbai, Maharashtra, India

 

 

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 :

Dolvi Works

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

Tel. No.:

91-2143-277502-15

Fax No.:

91-2143-277533-42

 

 

Factory 7 :

74, Fagun Mansion, 5th Floor, Ethiraj Salai, Egmore, Chennai – 600008, Tamilnadu, India

 

 

Foundation :

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

 

 

Branch Office 1 :

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

 

 

Group Office :

Epi Centre, 2nd Floor, CTS No. 4/6, Wakdewadi, Shivaji Nagar, Pune – 411 005, Maharashtra, India

 

 

Other Branch Offices :

Located At:

 

·         Karnataka

·         Tamilnadu

·         Andhra Pradesh

·         Coimbatore

·         New Delhi  

·         Madhya Pradesh

 

 

Additional Main Offices :

Located At:

 

·         Mumbai

·         Bangalore

·         Rajasthan

 

 

Overseas Offices :

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 31.03.2017

 

Name :

Mrs. Savitri Devi Jindal

Designation :

Chairperson

 

 

Name :

Mr. Sajjan Jindal

Designation :

Vice Chairman And Managing Director

Address :

Jindal House 32, Walkeshwar Road, Mumbai-400006, Maharashtra, India

Date of Appointment :

07.07.2007

DIN No.:

00017762

 

 

Name :

Mr. Vijay Laxman Kelkar

Designation :

Director

Address :

A - 701, Blossom Boulevard, Plot No. 421/2, South Main Road, Koregaon Park, Pune-411001, Maharashtra, India

Date of Appointment :

20.01.2010

DIN No.:

00011991

 

 

Name :

Haigreve Khaitan

Designation :

Director

Address :

1104, Sterling Seaface, Dr. Annie Besant Road, Worli, Mumbai-400018, Maharashtra, India

Date of Appointment :

30.09.2015

DIN No.:

00005290

 

 

Name :

Mr. Sheshagiri Rao M.V.S.

Designation :

Whole time Director

Address :

B 1603, Valencia, Hiranandani Gardens, Powai, Mumbai- 400076, Maharashtra, India

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

Address :

Bunglow No 11B, JVSL Township Po Vidyanagar Bellary-583275, Karnataka, India

Date of Appointment :

30.04.2007

DIN No.:

00046144

 

 

Name :

Mr. Jayant Acharya

Designation :

Wholetime Director

Address :

F-303, Great Eastern Gardens, L.B.S. Marg, Kanjur Marg West, Mumbai-400078, Maharashtra, India

Date of Birth/Age :

25.01.1963

Qualification :

Be (Chemical), M. SC (Physics), MBA (Marketing).

Date of Appointment :

07.05.2009

DIN No.:

00106543

 

 

Name :

Mr. Mahalingam Seturaman

Designation :

Director

Address :

6, Subbaraya Iyer Avenue, Abhiramapuram, Chennai – 600018, Tmilnadu, India

Date of Appointment :

27.07.2016

DIN No.:

00121727

 

 

Name :

Mr. Vijaya Kannan

Designation :

Director

Address :

6-3-1099/1100, Plot 15B Behind Babu Khan Millennium, Somajiguda Hyderabad-500082, Telangana, India

Date of Appointment :

16.06.2008

DIN No.:

00544730

 

 

Name :

Mr. Malay Mukherjee

Designation :

Additional Director

Address :

81, Templars Avenue Golders Green, London 110nr

Date of Appointment :

29.07.2015

DIN No.:

02861065

 

 

Name :

Mrs. Punita Kumar Sinha

Designation :

Director

Address :

51, Gate House Road, Newton Ma Massachusetts 024671320 US

Date of Appointment :

28.10.2012

DIN No.:

05229262

 

 

Name :

Hiroyuki Ogawa

Designation :

Nominee Director

Address :

2 Chome, 29 Ban 3 go, Takanodai, Yotsukaido shi Chiba ken 0 Japan

Date of Appointment :

17.05.2017

DIN No.:

07803839

 

 

KEY EXECUTIVES

 

Name :

Mr. Lancy Varghese

Designation :

Company Secretary

Address :

61/604, Evershine Millinium Paradise, Thakur Villa, Kandivali (East), Mumbai-400101, Maharashtra, India

Date of Appointment :

30.04.2007

PAN No.:

ABMPV9451B

 

 

Name :

Mr. Rajeev Madhusudan Pai

Designation :

Chief Financial Officer

Address :

Flat No 104, 10th Floor, Shravan - A, Tarangan Society, Pokhran Road No.1, Near  Cadbury, Thane-400606, Maharashtra, India

Date of Appointment :

27.05.2014

PAN No.:

ACBPP6303L

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

As on December 2017 

 

Category of Shareholder

No. of Shares

Percentage Holding

(A) Promoter & Promoter Group

1007504780

41.68

(B) Public

1399326800

57.89

(C) Non Promoter-Non Public

10388860

0.43

Grand Total

2417220440

100.00

 

 


STATEMENT SHOWING SHAREHOLDING PATTERN OF THE PROMOTER AND PROMOTER GROUP

 

Category of shareholder

No. of fully paid up equity shares held

Shareholding as a % of total no. of shares

A1) Indian

0.00

 

Individuals/Hindu undivided Family

14394770

0.60

 

NAVEEN JINDAL (HUF)

27790

0.00

 

SAJJAN JINDAL

1000

0.00

 

P R JINDAL HUF .

45550

0.00

 

DEEPIKA JINDAL

148650

0.01

 

SMINU JINDAL

55970

0.00

 

PRITHVI RAJ JINDAL

84580

0.00

 

NAVEEN JINDAL

27200

0.00

 

S K JINDAL AND SONS HUF .

58000

0.00

 

SAVITRI DEVI JINDAL

75300

0.00

 

TRIPTI JINDAL

50660

0.00

 

ARTI JINDAL

227550

0.01

 

SANGITA JINDAL

1000

0.00

 

TARINI JINDAL HANDA

4913890

0.20

 

URMILA BHUWALKA

260000

0.01

 

TANVI SHETE

4883630

0.20

 

AIYUSH BHUWALKA

14000

0.00

 

PARTH JINDAL

3520000

0.15

 

Central Government/ State Government(s)

9079520

0.38

 

KARNATAKA STATE INDUSTRIAL AND INFRASTRUCTURE DEVELOPMENT

9079520

0.38

 

Any Other (specify)

934008950

38.64

 

NALWA SONS INVESTMENTS LTD

45486370

1.88

 

REYNOLD TRADERS PRIVATE LIMITED

1000

0.00

 

JSW HOLDINGS LIMITED

177306230

7.34

 

JSW POWER TRADING COMPANY LIMITED

70038350

2.90

 

JSW PROJECTS LIMITED

1000

0.00

 

HEXA TRADEX LIMITED

13620

0.00

 

JSW TECHNO PROJECTS MANAGEMENT LTD

229326950

9.49

 

JSW LOGISTICS INFRASTRUCTURE PRIVATE LIMITED

17125770

0.71

 

SAJJAN JINDAL

100

0.00

 

SAJJAN JINDAL

100

0.00

 

SAJJAN JINDAL

100

0.00

 

DANTA ENTERPRISES PRIVATE LIMITED

60368250

2.50

 

GLEBE TRADING PRIVATE LIMITED

17157930

0.71

 

VIRTUOUS TRADECORP PRIVATE LIMITED

60368250

2.50

 

VIVIDH FINVEST PRIVATE LIMITED

139866690

5.79

 

JSW INVESTMENTS PRIVATE LIMITED

1000

0.00

 

SAJJAN JINDAL

100

0.00

 

SAJJAN JINDAL

100

0.00

 

SAJJAN JINDAL

100

0.00

 

SIDDESHWARI TRADEX PRIVATE LIMITED

7024580

0.29

 

SAHYOG HOLDINGS PRIVATE LIMITED

109922360

4.55

 

Sub Total A1

957483240

39.61

 

A2) Foreign

0.00

 

Any Other (specify)

50021540

2.07

 

ESTRELA INVESTMENT COMPANY LIMITED

4160070

0.17

 

NACHO INVESTMENTS LIMITED

4207380

0.17

 

BEAUFIELD HOLDINGS LIMITED

16409910

0.68

 

JSL OVERSEAS LIMITED

21026090

0.87

 

MENDEZA HOLDINGS LIMITED

4218090

0.17

 

Sub Total A2

50021540

2.07

 

A=A1+A2

1007504780

41.68

 

 

 

STATEMENT SHOWING SHAREHOLDING PATTERN OF THE PUBLIC SHAREHOLDER

 

Category & Name of the Shareholders

No. of fully paid up equity shares held

Shareholding % calculated as per SCRR, 1957 As a % of (A+B+C2)

B1) Institutions

0

0.00

 

Mutual Funds/

61666972

2.55

 

Foreign Portfolio Investors

477735159

19.76

 

LOTUS GLOBAL INVESTMENTS LTD

41709650

1.73

 

THE INDIAMAN FUND (MAURITIUS) LIMITED.

30761000

1.27

 

MORGAN STANLEY MAURITIUS COMPANY LIMITED

24845389

1.03

 

APMS INVESTMENT FUND LTD

36885000

1.53

 

Financial Institutions/ Banks

8187004

0.34

 

Any Other (specify)

362599815

15.00

 

FOREIGN BODIES CORPORATES

362584730

15.00

 

JFE STEEL INTERNATIONAL EUROPE B.V.

362583070

15.00

 

FOREIGN NATIONALS

5425

0.00

 

OVERSEAS CORPORATE BODIES

9660

0.00

 

Sub Total B1

910188950

37.65

 

B2) Central Government/ State Government(s)/ President of India

0

0.00

 

Central Government/ State Government(s)/ President of India

12375000

0.51

 

Sub Total B2

12375000

0.51

 

B3) Non-Institutions

0

0.00

 

Individual share capital upto INR 0.200 Million

110785219

4.58

 

Individual share capital in excess of INR 0.200 Million

108830077

4.50

 

NBFCs registered with RBI

24815

0.00

 

Any Other (specify)

257122739

10.64

 

Clearing Members

1191557

0.05

 

ESCROW A/C

710

0.00

 

HUF

19489641

0.81

 

IEPF

12027406

0.50

 

Bodies Corporate

193292726

8.00

 

SHAMYAK INVESTMENT PRIVATE LIMITED

25333230

1.05

 

GAGANDEEP CREDIT CAPITAL PVT LTD

45982650

1.90

 

ENAM SECURITIES PVT LTD

27051750

1.12

 

NRI

28867276

1.19

 

NRI – Non- Repat

2026364

0.08

 

Trusts

227059

0.01

 

Sub Total B3

476762850

19.72

 

B=B1+B2+B3

1399326800

57.89

 

 

 

BUSINESS DETAILS

 

Line of Business :

The Subject is primarily engaged in the Business of manufacture and sale of iron and steel products. (Registered Activity)

 

 

Products :

Item Code No.

Product Description

241
  1. Hot Rolled Steel Strips/ Sheets/ plates
  2. Rolled Long Products
  3. MS Cold Rolled Coils/ Sheets

 

 

Brand Names :

Not Divulged

 

 

Agencies Held :

Not Divulged

 

 

Exports :

Not Divulged

 

 

Imports :

Not Divulged

 

 

Terms :

Not Divulged

 

PRODUCTION STATUS NOT AVAILABLE

 

GENERAL INFORMATION

 

Suppliers :

Reference :

Not Divulged

Name of the Person :

--

Contact No.:

--

Since How Long Known :

--

Maximum Limit Dealt :

--

Experience :

--

Remark:

--

 

 

Customers :

 

Reference :

Not Divulged

Name of the Person :

--

Contact No.:

--

Since How Long Known :

--

Maximum Limit Dealt :

--

Experience :

--

Remark:

--

 

 

No. of Employees :

11848 (Approximately)

 

 

Bankers :
  • Allahabad Bank
  • Bank of Baroda
  • Bank of India
  • ICICI Bank Limited
  • IDBI Bank Limited
  • Indian Bank
  • Indian Overseas Bank
  • Punjab National Bank
  • State Bank of India
  • Union Bank of India
  • Vijaya Bank

 

 

Facilities :

Secured Loan

31.03.2017

(INR in Million)

31.03.2016

(INR in Million)

Long-term Borrowings

 

 

Bonds

32419.300

33166.500

Debentures (secured)

37031.300

63510.500

Term loans: secured

103201.000

82510.500

 

 

 

Short-term borrowings

 

 

Working capital loans from banks (secured)

 

 

Rupee loan

514.000

3693.900

Foreign currency loan

0.000

200.000

Total

173165.600

179187.500

 

Auditors 1:

 

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

 

 

Auditors 2:

 

Name :

SRBC and Company LLP

Chartered Accountants

Address :

14th Floor, The Ruby 29 Senapati Bapat Marg, Dadar (East), Mumbai – 400028, Maharashtra, India

Tel No.:

91-22-61920000

Fax No.:

91-22-61921000

Memberships :

Not Available

 

 

Collaborators :

Not Available

 

 

Subsidiaries :
  • JSW Steel (Netherlands) B.V.
  • JSW Steel (UK) Limited
  • Argent Independent Steel (Holdings) Limited (ceased w.e.f. 17.11.2015)
  • JSW Steel Service Centre (UK) Limited (ceased w.e.f. 18.10.2016)
  • JSW Steel Holding (USA) Inc. (ceased w.e.f. 28.03.2017)
  • JSW Steel (USA) Inc.
  • Periama Holdings, LLC (w.e.f. 23.01.2017)
  • Periama Holdings, LLC (ceased w.e.f. 16.03.2017)
  • 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 Eurosh Limitada
  • Santa Fe Mining
  • Santa Fe Puerto S.A.
  • JSW Natural Resources Limited
  • JSW Natural Resources Mozambique Limitada
  • JSW ADMS Carvao Lda
  • JSW Mali Resources SA (ceased w.e.f. 18.06.2015)
  • JSW Steel East Africa Limited (ceased w.e.f. 08.04.2016)
  • Nippon Ispat Singapore (PTE) Limited
  • Erebus Limited
  • Arima Holding Limited
  • Lakeland Securities Limited
  • JSW Steel Processing Centre Limited
  • JSW Bengal Steel Limited
  • JSW Natural Resources India Limited
  • JSW Energy (Bengal) Limited
  • JSW Natural Resource Bengal Limited
  • Barbil Beneficiation Company Limited (ceased w.e.f. 27.01.2017)
  • Barbil Iron Ore Company Limited (ceased w.e.f. 19.10.2016)
  • JSW Jharkhand Steel Limited
  • Amba River Coke Limited
  • JSW Steel Coated Products Limited
  • Peddar Realty Private Limited
  • JSW Steel (Salav) Limited
  • Everbest Steel and Mining Holdings Limited (ceased w.e.f. 04.12.2015)
  • Dolvi Minerals and Metals Private Limited
  • Dolvi Coke Projects Limited
  • JSW Industrial Gases Private Limited (w.e.f. 16.08.2016) (formerly JSW Praxair Oxygen Private Limited)
  • JSW Realty and Infrastructure Private Limited
  • JSW Steel Italy S.R.L.(w.e.f. 30.01.2017)

 

 

Associates :
  • JSW Industrial Gases Private Limited (ceased w.e.f. 15.08.2016) (formerly JSW Praxair Oxygen Private Limited)

 

 

Joint ventures :
  • Vijayanagar Minerals Private Limited
  • Rohne Coal Company Private Limited
  • JSW Severfield Structures Limited
  • Gourangdih Coal Limited
  • GEO Steel LLC
  • JSW Structural Metal Decking Limited
  • JSW MI Steel Service Center Private Limited
  • JSW Vallabh Tinplate Private Limited
  • AcciaItalia S.p.A. (w.e.f. 30.11.2016)

 

 

Post-Employment Benefit Entity :
  • JSW Steel EPF Trust
  • JSW Steel Group Gratuity Trust
  • JSW Steel Limited Employee Gratuity Fund

 

 

Enterprises over which Key Management Personnel and Relatives of such personnel exercise significant Influence:

 
  • JSW Energy Limited
  • Jindal Stainless Limited
  • Jindal Saw Limited
  • Jindal Saw USA LLC
  • Jindal Steel and Power Limited
  • JSoft Solutions Limited
  • Jindal Industries Private Limited
  • JSW Cement Limited
  • JSW Jaigarh Port Limited
  • Reynold Traders Private Limited
  • Raj West Power Limited
  • JSW Power Trading Company Limited
  • JSW Infrastructure Limited
  • South West Port Limited
  • JSW Techno Projects Management Limited
  • JSW Global Business Solutions Limited (formerly Sapphire Technologies Limited)
  • South West Mining Limited
  • JSL Architecture Limited
  • JSW Projects Limited
  • JSW Foundation
  • P Jindal Foundation
  • Jindal Technologies and Management Services Private Limited
  • JSW Dharamatar Port Private Limited
  • Jindal Tubular (India) Limited
  • M/s Shadeed Iron and Steel Co. LLC
  • JSW Investment Private Limited
  • JSW IP Holdings Private Limited (w.e.f. 01.04.2015)
  • Epsilon Carbon Private Limited (formerly AVH Private Limited)
  • JSW International Trade Corp PTE Limited
  • Heal Institute Private Limited (ceased w.e.f 19.10.2016)
  • JSL Lifestyle Limited
  • Jindal Power Limited
  • Jindal Fittings Limited
  • Jindal Education Trust
  • JSW Paints Private Limited
  • Khaitan and Company
  • Toshiba JSW Power System Private Limited
  • MJSJ Coal Limited

 

 

CAPITAL STRUCTURE

 

As on 31.03.2017

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

60150000000

Equity Shares

INR 1/- each

INR 60150.000 Million

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

2417220440

Issued and subscribed: (A)

Outstanding at the beginning and end of the year

INR 1/- each

INR 2417.200 Million

Less :

Shares held under ESOP Trust (B)

Treasury shares at end of the year

 

INR 14.200 Million

2,402,984,690

Equity Shares ( Net of treasury shares) (A - B)

Outstanding at the end of the year

INR 1/- each

INR 2403.000 Million

 

 

 

 

Add :

Paid-up Capital :

Equity shares forfeited (amount originally

paid-up) (C)

 

INR 610.300 Million

 

Total

 

INR 3013.300 Million

 

 

 

 

Movement in Treasury Shares:

 

Particulars

As at 31.03.2017

Shares held under ESOP Trust

Number of Shares

INR (in Million)

Equity shares of INR 1 each fully paid up as on 1 April

(18,488,170)

(18.500)

Changes during the year

4,252,420

4.300

Equity shares - closing as on 31 March

(14,235,750)

(14.200)

 

a) 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.

 

SHAREHOLDERS HOLDING MORE THAN 5% SHARES IN THE COMPANY IS SET OUT BELOW:

 

 

As at 31.03.2017

 

No of Shares

Percentage

EQUITY SHARES

 

 

JFE Steel International Europe B.V

362583070

15.00%

JSW Holdings Limited

175794230

7.27%

Vividh Consultancy and advisory Services Private Limited

139866690

5.79%

JSW Investment Private Limited

--

--

JSW Techno Projects Management Limited

229326950

9.49%

 

c) Note for shares held under esop trust:

For the details of shares reserved for issue under the employee stock option (ESOP) plan of the Company (refer note 36)

 

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

 

186,048,440 Equity shares fully paid up to the shareholders of the erstwhile JSW Ispat Steel Limited pursuant to a Composite Scheme of Amalgamation and Arrangement.

 

 

 

FINANCIAL DATA

[all figures are in INR Million]

 

ABRIDGED BALANCE SHEET - STANDALONE

 

SOURCES OF FUNDS

31.03.2017

31.03.2016

31.03.2015

 

 

 

 

I.              EQUITY AND LIABILITIES

 

 

 

(1)Shareholders' Funds

 

 

 

(a) Share Capital

3013.300

3009.000

10671.900

(b) Reserves & Surplus

237967.700

201093.500

246574.100

(c) Money received against share warrants

0.000

0.000

0.000

 

 

 

 

(2) Share Application money pending allotment

0.000

0.000

0.000

Total Shareholders’ Funds (1) + (2)

240981.000

204102.500

257246.000

 

 

 

 

(3) Non-Current Liabilities

 

 

 

(a) long-term borrowings

283578.200

301448.100

254968.900

(b) Deferred tax liabilities (Net)

13293.300

0.000

29665.900

(c) Other long term liabilities

859.100

26.200

2361.000

(d) long-term provisions

9604.600

11513.100

567.800

Total Non-current Liabilities (3)

307335.200

312987.400

287563.600

 

 

 

 

(4) Current Liabilities

 

 

 

(a) Short term borrowings

48753.700

20699.000

2643.400

(b) Trade payables

126087.600

110113.200

125153.900

(c) Other current liabilities

84634.800

86118.700

72781.100

(d) Short-term provisions

1321.300

1056.700

3536.000

Total Current Liabilities (4)

260797.400

217987.600

204114.400

 

 

 

 

TOTAL

809113.600

735077.500

748924.000

 

 

 

 

II.          ASSETS

 

 

 

(1) Non-current assets

 

 

 

(a) Fixed Assets

 

 

 

(i) Tangible assets

502151.300

464981.100

384975.600

(ii) Intangible Assets

511.100

618.200

718.300

(iii) Capital work-in-progress

27454.300

62035.400

75938.500

(iv) Intangible assets under development

2817.200

2357.800

1960.100

(b) Non-current Investments

47496.700

47640.300

41972.800

(c) Deferred tax assets (net)

0.000

4795.400

0.000

(d)  Long-term Loan and Advances

33497.400

2417.500

50123.700

(e) Other Non-current assets

17337.300

15595.900

2995.400

Total Non-Current Assets

631265.300

600441.600

558684.400

 

 

 

 

(2) Current assets

 

 

 

(a) Current investments

3000.900

0.000

0.000

(b) Inventories

92702.600

67417.400

85847.400

(c) Trade receivables

39480.000

25107.100

20268.300

(d) Cash and cash equivalents

10270.200

5985.400

17950.600

(e) Short-term loans and advances

1211.300

13253.100

65374.100

(f) Other current assets

31183.300

22872.900

799.200

Total Current Assets

177848.300

134635.900

190239.600

 

 

 

 

TOTAL

809113.600

735077.500

748924.000

 

 

PROFIT & LOSS ACCOUNT - STANDALONE

 

 

PARTICULARS

31.03.2017

31.03.2016

31.03.2015

 

SALES

 

 

 

 

Income

569132.500

408589.600

460873.200

 

Other Income

2554.600

3183.000

4667.700

 

TOTAL

571687.100

411772.600

465540.900

 

 

 

 

 

Less

EXPENSES

 

 

 

 

Cost of Materials Consumed

283998.800

187633.200

273456.000

 

Purchases of Stock-in-Trade

9446.600

1527.200

3856.400

 

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

(13895.800)

10835.600

(16669.300)

 

Employees benefits expense

11675.800

9532.900

9468.300

 

Excise duty expense

46231.400

41520.400

0.000

 

Exceptional items

0.000

58604.500

3963.000

 

Other expenses

116243.500

93851.800

102045.400

 

TOTAL

453700.300

403505.600

376119.800

 

 

 

 

 

 

PROFIT/ (LOSS)  BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION

117986.800

8267.000

89421.100

 

 

 

 

 

Less

FINANCIAL EXPENSES

36427.900

32187.300

29086.900

 

 

 

 

 

 

PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION

81558.900

(23920.300)

60334.200

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION

30246.100

28472.400

27845.000

 

 

 

 

 

 

PROFIT/ (LOSS)  BEFORE TAX

51312.800

(52392.700)

32489.200

 

 

 

 

 

Less

TAX

15547.400

(17096.000)

10824.400

 

 

 

 

 

 

PROFIT/ (LOSS)  AFTER TAX 

35765.400

(35296.700)

21664.800

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

 

 

 

 

F.O.B. Value of Exports

100513.200

24851.700

78817.300

 

Sale of Carbon Credits

0.000

0.000

0.000

 

Commission and Fees

0.000

392.400

515.500

 

Interest Income

982.600

1735.600

1603.100

 

TOTAL EARNINGS

101495.800

26979.700

80935.900

 

 

 

 

 

 

IMPORTS

 

 

 

 

Capital Goods

5269.500

15317.200

21338.900

 

Raw Materials (including Power and Fuel)

148140.900

86097.600

145177.400

 

Stores & Spare Parts

10648.100

5834.300

6433.300

 

TOTAL IMPORTS

164058.500

107249.100

172949.600

 

 

 

 

 

 

Earnings / (Loss) Per Share (INR)

14.89

(14.75)

88.24

 

 

CURRENT MATURITIES OF LONG TERM DEBT DETAILS

 

Particulars

 

31.03.2017

31.03.2016

31.03.2015

Current Maturities of Long term debt

47040.200

31785.700

23728.800

Cash generated from operations

80405.700

58233.600

91769.600

Net cash flow from operating activity

80174.500

56694.900

84661.700

 

 

QUARTERLY RESULTS

 

Particulars

31.12.2017

30.09.2017

30.06.2017

Audited / Unaudited

Unaudited

Unaudited

Unaudited

 

1ST Quarter

2nd Quarter

3RD Quarter

Net Sales

164530.000

149560.000

150960.000

Total Expenditure

128800.000

120290.000

128980.000

PBIDT (Excl OI)

35730.000

29270.000

21980.000

Other Income

430.000

490.000

480.000

Operating Profit

36160.000

29760.000

22460.000

Interest

8920.000

9190.000

9070.000

Exceptional Items

(2340.000)

NA

NA

PBDT

24900.000

20570.000

13390.000

Depreciation

7690.000

7720.000

7320.000

Profit Before Tax

17210.000

12850.000

6070.000

Tax

5950.000

4400.000

1880.000

Provisions and contingencies

NA

NA

NA

Profit After Tax

11260.000

8450.000

4190.000

Extraordinary Items

NA

NA

NA

Prior Period Expenses

NA

NA

NA

Other Adjustments

NA

NA

NA

Net Profit

11260.000

8450.000

4190.000

 

 

KEY RATIOS

 

EFFICIENCY RATIOS

 

PARTICULARS

 

31.03.2017

31.03.2016

31.03.2015

Average Collection Days

(Sundry Debtors / Operating Income * 365 Days)

122.13

1108.51

82.73

 

 

 

 

Account Receivables Turnover

(Operating Income / Sundry Debtors)

2.99

0.33

4.41

 

 

 

 

Average Payment Days

(Sundry Creditors / Purchases * 365 Days)

156.83

212.47

164.73

 

 

 

 

Inventory Turnover

(Operating Income / Inventories)

1.27

0.12

1.04

 

 

 

 

Asset Turnover

(Operating Income / Net Fixed Assets)

0.22

0.02

0.19

 

 

LEVERAGE RATIOS

 

PARTICULARS

 

31.03.2017

31.03.2016

31.03.2015

Debt Ratio

((Borrowing + Current Liabilities) / Total Assets)

0.73

0.75

0.64

 

 

 

 

Debt Equity Ratio

(Total Liability / Networth)

1.57

1.73

1.09

 

 

 

 

Current Liabilities to Networth

(Current Liabilities / Net Worth)

1.08

1.07

0.79

 

 

 

 

Fixed Assets to Networth

(Net Fixed Assets / Networth)

2.21

2.60

1.80

 

 

 

 

Interest Coverage Ratio

(PBIT / Financial Charges)

3.24

0.26

3.07

 

 

PROFITABILITY RATIOS

 

PARTICULARS

 

 

31.03.2017

31.03.2016

31.03.2015

Net Profit Margin

((PAT / Sales) * 100)

%

6.28

(8.64)

4.70

 

 

 

 

 

Return on Total Assets

((PAT / Total Assets) * 100)

%

4.42

(4.80)

2.89

 

 

 

 

 

Return on Investment (ROI)

((PAT / Networth) * 100)

%

14.84

(17.29)

8.42

 

 

SOLVENCY RATIOS

 

PARTICULARS

 

31.03.2017

31.03.2016

31.03.2015

Current Ratio

(Current Assets / Current Liabilities)

0.68

0.62

0.93

 

 

 

 

Quick Ratio

((Current Assets – Inventories) / Current Liabilities)

0.33

0.31

0.51

 

 

 

 

G-Score Ratio Financial

(Networth / Total Assets)

0.30

0.28

0.34

 

 

 

 

G-Score Ratio Debt

(Debts / Equity Capital)

125.90

117.62

26.36

 

 

 

 

G-Score Ratio Liquidity

(Total Current Assets / Total Current Liabilities)

0.68

0.62

0.93

Total Liability = Short-term Debt + Long-term Debt + Current Maturities of Long-term debts

 

 

STOCK PRICES

 

Face Value

INR 1.00/-

Market Value

INR 309.60/-

 

 

FINANCIAL ANALYSIS

[all figures are INR Million]

 

DEBT EQUITY RATIO

 

Particular

31.03.2015

31.03.2016

31.03.2017

 

INR In Million

INR In Million

INR In Million

Share Capital

10671.900

3009.000

3013.300

Reserves & Surplus

246574.100

201093.500

237967.700

Share Application money pending allotment

0.000

0.000

0.000

Net worth

257246.000

204102.500

240981.000

 

 

 

 

Long Term borrowings

254968.900

301448.100

283578.200

Short Term borrowings

2643.400

20699.000

48753.700

Current Maturities of Long term debt

23728.800

31785.700

47040.200

Total borrowings

281341.100

353932.800

379372.100

Debt/Equity ratio

1.094

1.734

1.574

 

 

 

 

YEAR-ON-YEAR GROWTH

 

Year on Year Growth

31.03.2015

31.03.2016

31.03.2017

 

INR In Million

INR In Million

INR In Million

Sales

460873.200

408589.600

569132.500

 

 

(11.344)

39.292

 

 

 

NET PROFIT MARGIN

 

Net Profit Margin

31.03.2015

31.03.2016

31.03.2017

 

INR In Million

INR In Million

INR In Million

Sales

460873.200

408589.600

569132.500

Profit

21664.800

(35296.700)

35765.400

 

4.70%

(8.64%)

6.28%

 

 

 

 

ABRIDGED BALANCE SHEET – (CONSOLIDATED)

 

SOURCES OF FUNDS

 

31.03.2017

31.03.2016

 

 

 

 

I.              EQUITY AND LIABILITIES

 

 

 

(1)Shareholders' Funds

 

 

 

(a) Share Capital

 

3013.300

3009.000

(b) Reserves & Surplus

 

223463.000

186645.500

(c) Money received against share warrants

 

0.000

0.000

 

 

 

 

(2) Non-controlling interests

 

-2457.200

-1948.000

Total Shareholders’ Funds (1) + (2)

 

224019.100

187706.500

 

 

 

 

(3) Non-Current Liabilities

 

 

 

(a) long-term borrowings

 

324157.600

354686.400

(b) Deferred tax liabilities (Net)

 

30735.700

17969.400

(c) Other long term liabilities

 

5411.900

8480.000

(d) long-term provisions

 

970.900

946.200

Total Non-current Liabilities (3)

 

361276.100

382082.000

 

 

 

 

(4) Current Liabilities

 

 

 

(a) Short term borrowings

 

48806.500

23428.400

(b) Trade payables

 

143523.300

127576.000

(c) Other current liabilities

 

2023.000

1708.600

(d) Short-term provisions

 

100759.000

102149.200

Total Current Liabilities (4)

 

295111.800

254862.200

 

 

 

 

TOTAL

 

880407.000

824650.700

 

 

 

 

II.          ASSETS

 

 

 

(1) Non-current assets

 

 

 

(a) Fixed Assets

 

 

 

(i) Tangible assets

 

577864.800

550990.900

(ii) Intangible Assets

 

9435.800

10404.300

(iii) Capital work-in-progress

 

40813.700

70350.700

(iv) Intangible assets under development

 

2817.200

2357.800

(b) Non-current Investments

 

10670.200

11946.100

(c) Deferred tax assets (net)

 

844.100

5581.700

(d)  Long-term Loan and Advances

 

1208.400

931.700

(e) Other Non-current assets

 

24139.000

24714.500

Total Non-Current Assets

 

667793.200

677277.700

 

 

 

 

(2) Current assets

 

 

 

(a) Current investments

 

3000.900

0.000

(b) Inventories

 

113949.600

83211.800

(c) Trade receivables

 

41494.400

27273.700

(d) Cash and cash equivalents

 

14851.300

10204.000

(e) Short-term loans and advances

 

1737.200

1667.000

(f) Other current assets

 

37580.400

25016.500

Total Current Assets

 

212613.800

147373.000

 

 

 

 

TOTAL

 

880407.000

824650.700

 

 

PROFIT & LOSS ACCOUNT– (CONSOLIDATED)

 

 

PARTICULARS

 

31.03.2017

31.03.2016

 

SALES

 

 

 

 

Income

 

605362.500

459767.300

 

Other Income

 

1521.300

1804.800

 

TOTAL

 

606883.800

461572.100

 

 

 

 

 

Less

EXPENSES

 

 

 

 

Cost of Materials Consumed

 

297485.800

211266.000

 

Purchases of Stock-in-Trade

 

0.000

544.200

 

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

 

(14859.200)

13657.600

 

Employees benefits expense

 

16995.900

15186.700

 

Excise duty expense

 

49316.600

44305.600

 

Exceptional items

 

0.000

21254.100

 

Other expenses

 

134681.200

110797.100

 

TOTAL

 

483620.300

417011.300

 

 

 

 

 

 

PROFIT/ (LOSS)  BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION

 

123263.500

44560.800

 

 

 

 

 

Less

FINANCIAL EXPENSES

 

37681.200

36011.800

 

 

 

 

 

 

PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION

 

85582.300

8549.000

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION

 

34298.700

33225.600

 

 

 

 

 

 

PROFIT/ (LOSS)  BEFORE TAX

 

51283.600

(24676.600)

 

 

 

 

 

Less

TAX

 

16743.100

(19662.100)

 

 

 

 

 

 

Profit / (loss) for the year

 

34540.500

(5014.500)

 

 

 

 

 

Share of (loss) / profit from an associate

 

(89.100)

217.100

 

 

 

 

 

 

Share of profit / (loss) from joint ventures (net)

 

221.000

(8.900)

 

 

 

 

 

 

TOTAL PROFIT / (LOSS) FOR THE YEAR

 

34672.400

(4806.300)

 

 

 

 

 

 

Earnings / (Loss) Per Share (INR)

 

14.66

(1.40)

 

 

LEGAL CASE

 

Bench:- Bombay

Presentation Date:23.10.2017

Lodging No:-

NMCDL/688/2017

Failing Date:-

23.10.2017

Reg. No.:-

NMCD/647/2017

Reg. Date:-

26.10.2017

Main Matter

Lodging No.:

CARBPL/454/2017

Petitioner:-

OBULAPURAM MINING COMPANY PRIVATE LIMITED

Respondent:-

JSW STEEL LIMITED

Petn.Adv:-

ASHOK SINGH (I1402)

 

District:-

OUTSIDE MAHARASHTRA

Bench:-

SINGLE 

Status:-

Pre-Admission

Category:

NOTICE OF MOTIONS IN COMMERCIAL DIVISION MATTERS

Act:-

Arbitration and Conciliation Act 1996

 

 

 

Bench:- Bombay

Presentation Date:23.10.2017

Lodging No:-

NMCDL/688/2017

Failing Date:-

23.10.2017

 

Main Matter

Lodging No.:

CARBPL/454/2017

Petitioner:-

OBULAPURAM MINING COMPANY PRIVATE LIMITED

Respondent:-

JSW STEEL LIMITED

Petn.Adv:-

ASHOK SINGH (I1402)

 

District:-

OUTSIDE MAHARASHTRA

Bench:-

SINGLE 

Status:-

Pre-Admission

Category:

NOTICE OF MOTIONS IN COMMERCIAL DIVISION MATTERS

Act:-

Code of Civil Procedure 1908

 

Bench:- Bombay

Presentation Date:23.10.2017

Lodging No:-

CARBPL/454/2017

Failing Date:-

23.10.2017

 

Main Matter

Petitioner:-

OBULAPURAM MINING COMPANY PRIVATE LIMITED

Respondent:-

JSW STEEL LIMITED

Petn.Adv:-

ASHOK SINGH (I1402)

 

District:-

OUTSIDE MAHARASHTRA

Bench:-

SINGLE  

Status:-

Pre-Admission

Category:

ARBITRATION PETITION U/S 34 OF ARBITRATION AND CONCILIATION ACT, 1996

Act:-

Arbitration and Conciliation Act 1996

Under Section:-

34

 

 

 

LITIGATION DETAILS

Bench:- Bombay

Presentation Date:15.07.2017

Lodging No:-

ITXAL/1739/2017

Failing Date:-

15.07.2017

Reg. No.:-

ITXA/1486/2017

Reg. Date:-

07.10.2017

Petitioner:-

PR. COMMISSIONER OF INCOME TAX, CENT

Respondent:-

JSW STEEL LIMITED

Petn.Adv:-

TEJVEER SINGH MASTAN SINGH (I3678)

District:-

MUMBAI

Bench:-

DIVISION

Status:-

Pre-Admission 

Category:

TAX APPEALS

Next Date:-

04.05.2018

Stage:-

FOR ADMISSION - FRESH

Coram :

ACCORSING TO SITTING LIST

ACCORSING TO SITTING LIST

Last Date:-

01.11.2017

Last Coram :

HON’BLE SHRI JUSTICE A.S. OKA

HON’BLE SHRI JUSTICE A.K. MENON

Act:-

Income Tax Act, 1961

Unser Section :-

260A

 

 

Bench:- Bombay

Presentation Date:25.05.2017

Lodging No:-

ITXAL/1353/2017

Failing Date:-

25.05.2017

 

Petitioner:-

PR. COMMISSIONER OF INCOME TAX, CENT

Respondent:-

JSW STEEL LIMITED

Petn.Adv:-

PADMA DIVAKAR (I3287)

 

District:-

NASHIK

Bench:-

SINGLE

Category:

TAX APPEAL 

Status:-

Pre-Admission

Stage:-

FOR REJECTION [ORIGINAL SIDE MATTERS]

Last Date:-

31.08.2017

Last Coram:-

REGISTRAR (OS)/PROTHONOTARY AND SR. MASTER

Act:-

Income Tax Act, 1961

Unser Section :-

260A

 

 

 

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

Yes

7

Name of the person contacted

Yes

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

 

 

GENERAL INFORMATION

 

Subject (“the Company”) is primarily engaged in the business of manufacture and sale of Iron and Steel Products.

 

The Company is an integrated manufacturer of diverse range of steel products with its manufacturing facilities located at Vijaynagar Works in Karnataka, Dolvi Works in Maharashtra and Salem works in Tamil Nadu.

 

JSW Steel Limited is a public limited company incorporated in India on March 15, 1994 under the Companies Act, 1956 and listed on the Bombay Stock Exchange and National Stock Exchange. The registered office of the Company is JSW Centre, Bandra Kurla Complex, Bandra (East), Mumbai – 400 051.

 

 

FINANCIAL RESULTS

 

INDIAN ACCOUNTING STANDARDS (Ind AS)

 

In accordance with the notification issued by the Ministry of Corporate Affairs (MCA), your Company is required to prepare financial statements under Indian Accounting Standards (Ind AS) prescribed under section 133 of the Companies Act 2013 read with rule 3 of the Companies (Indian Accounting Standards Rules, 2015 and Companies (Indian Accounting Standards) Amendment Rules, 2016 with effect from 1st April 2016. Ind AS has replaced the existing Indian GAAP prescribed under section 133 of the Companies Act, 2013, read with rule 7 of Companies (Accounts) Rules, 2014

 

Accordingly the Company has adopted Indian Accounting Standard (“Ind AS”) with effect from 1st April 2016 with the transition date of 1st April 2015 and the financial Statements for the year ended 31st March 2017 has been prepared in accordance with Ind AS. The financial statements for the year ended 31st March 2016 have been restated to comply with Ind AS to make them comparable.

 

The MCA notification also mandates that Ind AS shall be applicable to subsidiary Companies, Joint venture or associates of the Company. Hence the Company and JSW Steel group have prepared and reported financial statements under Ind AS w.e.f. April 1, 2016, including restatement of the opening balance sheet as at April 1, 2015.

 

The effect of the transition from IGAAP to Ind AS has been explained by way of an reconciliation in the Standalone Financial Statements and Consolidated Financial Statements.

 

RESULTS OF OPERATIONS

 

The financial year 2016-17 threw up challenges in terms of tepid global steel consumption growth, trade remedial actions across countries and volatile raw material prices. However steel prices recovered due to imposition of trade remedial across geographies and spike in iron ore and coal prices providing relief to the steel industry. While the Indian steel consumption grew by 2.6% there was competitive pressure in domestic market due to surge in domestic steel production and elevated level of imports. The trade remedial measures imposed by the Indian Government provided some relief to the steel industry as steel prices recovered. This steel price increase was offset by cost pressures due to raw material price volatility and availability. In these challenging conditions, the Company’s profitability improved.

 

Standalone Results

 

The Company delivered its highest ever production volumes, sales volume, EBITDA and Profit after tax during the FY 2016-2017.

 

With the ramp up of newly commissioned facilities in a record time, for the full year FY 2016-17, the Company reported Crude Steel production growth of 26%YoY at 15.80 million tonnes. Saleable Steel sales volume for the year grew by 22%YoY to 14.77 million tonnes driven by export sales, as domestic steel demand, especially for long products, was adversely impacted by demonetisation. However, sales of value added products grew by 17% YoY to 5.06 million tonnes for FY2016-17.

 

Revenue from operations for FY 2016-17 stood at INR 569130.000 Million, up 39% YoY. The Company undertook multiple performance improvement initiatives during the year from diversified sourcing strategy, optimization of logistics costs, procurement costs, to focus on yields and productivity. As a result, the Operating EBITDA for the year grew by 81%YoY to INR 115430.000 Million. The Company posted a net profit of INR 35770.000 for FY 2016-17 as compared to the net loss of INR 35300.000 Million for FY 2015-16.

 

The Company’s net worth increased to INR 240980.000 Million as on March 31, 2017 as compared to INR 204100.000 Million as on March 31, 2016. The Company’s gearing (Net Debt to Equity) at the end of the year stood at 1.53x (as against 1.71x as on March 31, 2016) and Net Debt to EBITDA stood at 3.20x (as against 5.49x as on March 31, 2016).

 

 

MANAGEMENT DISCUSSION AND ANALYSIS

 

JSW Steel- An Overview

 

JSW Steel is India’s leading integrated manufacturer of carbon steel products, with an export presence in over 100 countries across five continents. In 2016, the company was ranked tenth among the top thirty-seven world-class steelmakers according to World Steel Dynamics, based on a variety of factors. In particular, the Company achieved the full rating (10/10) on the following criterias: conversion costs and yields, expanding capacity, location in high-growth markets and labour costs. This ranking puts the Company ahead of all other steelmakers based in India.

 

The Company has significantly expanded its steelmaking capacity in India. It has increased from 1.6 MTPA in 2002 to an installed crude steel capacity of 18.0 MTPA in 2016, through organic and inorganic growth strategies. Its current operations in India comprises 12.50 MTPA (around 70% of the capacity) of flat products and 5.50 MTPA (around 30% of the capacity) of long products. JSW Steel’s extensive portfolio of flat and long products includes hot rolled coils, sheets and plates, cold rolled coils and sheets, galvanised and galvalume products, pre-painted galvanised and galvalume products, thermo mechanically treated (‘TMT’) bars, wire rods and special steel bars, rounds and blooms, plates and pipes of various sizes and cold rolled non-grain oriented products. The Company is also one of India’s largest producers and exporters of coated flat steel products.

 

The primary factors that affect JSW’s Steel operations comprise: a) sales volume and prices, and b) production costs. The Company derives its revenue primarily from the sale of finished steel products, and the steel market is substantially driven by changes in supply and demand nationally and internationally. The Company’s sales revenue also depends on the price of steel in the international markets. The global steel price, in turn, depends upon a combination of factors, including the availability and cost of raw material inputs, fluctuations in the volume of steel imports, transportation costs, protective trade measures and various social and political factors other than the worldwide steel production, capacity and demand.

 

In the recent years, the steel industry, and the key raw material (iron ore and coal mining) industries have seen significant volatility. It happened largely due to a sharp fall in demand, an outcome of the global economic crisis. While the global economy showed signs of recovery in 2010, subsequent years have been volatile primarily due to the sovereign debt crisis in certain European countries, such as Greece, Portugal and Cyprus. At present, the improving macroeconomic environment may help revive the demand cycle for steel. Despite lack of momentum in the global economy, uninspiring demand growth in India and liquidity crunch following the Government’s demonetisation initiative, JSW Steel reported a strong performance. This is the outcome of its global and domestic strategies that validate the Company’s Will to Win.

 

ECONOMIC REVIEW

 

Global Economy

 

Global economic activity improved in the second half of CY2016, especially in advanced economies. Growth picked up in the US as firms grew more confident about future demand. The economy also recorded a lower rate of unemployment and buoyant consumer demand. In the aftermath of the Brexit vote, the Euro area growth was also resilient on the back of strong domestic demand and continued easing; the growth in the United Kingdom remained robust on the back of resilient spending. Japan’s performance has also been on the upside with strong exports.

 

However, the global economic growth, at 3.1% on a y-o-y basis, fell short of expectations in CY2016 as deceleration in key emerging markets and developing economies (EMDEs) overshadowed the modest recovery in major developed countries. The EMDEs contribute to more than half of the global economic growth rate. Their deceleration was accompanied by a modest increase in commodity prices, subdued global trade, financial market volatility and weakening capital flows. Although China’s growth turned out to be better than expected on the back of policy stimulus, it was lower than CY2015. India fared better than the world in terms of growth, even though the demonetisation exercise temporarily threw a challenge. Brazil, on the other hand, remained mired in a deep recession. Activity remained weak in fuel and nonfuel commodity exporters more generally, while geopolitical factors held back growth in parts of the Middle East and Turkey.

 

Global economic challenges

 

• Recent political developments highlight a fraying consensus about the benefits of cross-border economic integration. The major policy shifts might further intensify protectionism and widen global imbalances.

 

• Stumbling oil prices triggered a global economic volatility, whose effect spilled over to other sectors. The prices of Brent Crude declined as low as USD 27.67 per barrel.

 

• The US economy is expected to run into the limits of full employment, and push inflation higher as a result of additional growth. However, this is expected to unfold in 2018 onwards

 

• Tax reforms, such as an amnesty for multinational companies that repatriate foreign profits, is expected to come to effect. These reforms will create even bigger budget deficits, which in turn will stimulate more growth and inflation.

 

 

Outlook

 

There has been an acceleration in growth in advanced economies, primarily owing to reduced inventories and marginal recovery in manufacturing output. Stronger activity and expectations of more robust global demand, coupled with agreed restrictions on oil supply, have helped commodity prices recover from their troughs in early 2016. Oil prices increased consequent to an agreement among major producers to trim supply. Activity is projected to pick up in emerging market and developing economies, because conditions in commodity exporters experiencing macroeconomic strains are gradually expected to improve. This improvement is likely to be supported by a partial recovery in commodity prices and reduced deflationary pressures. With strong infrastructure and real estate investment in China as well as expectations of probable lower outlay in infrastructure supplies in the US, prices for base metals have also strengthened. Although core inflation rates have remained broadly unchanged and generally below inflation targets. Besides, headline inflation rates have recovered in advanced economies in recent months with the bottoming out of commodity prices.

 

However, multiple geopolitical changes still create some concern. As per the World Steel Association, the US policy uncertainties, Brexit, the rising populist wave in current European elections and the potential retreat from globalisation and free trade under the pressure of rising nationalism add a new dimension of uncertainty in the investment environment.

 

According to the International Monetary Fund (IMF), the global economic activity is picking up with a long awaited cyclical recovery in investment, manufacturing, and trade. It has projected economic activities to improve in both advanced economies as well as EMDEs in CY 2017 and CY 2018, with global growth projections at 3.5% and 3.6%, respectively.

 

 

Indian Economy

 

India’s economic growth is gradually improving since 2014. The favourable policy as well as executive reforms by the Government to support strong and sustainable growth, prudent fiscal regime and calibrated monetary easing that reigned in inflation have helped to strengthen macroeconomic stability. The lower crude oil prices have also helped to reduce current account deficit, improve fiscal positions, and lower inflation. This, in turn, has helped boost economic activities in India. Driven by these positive developments, the country has emerged as the world’s fastest growing major economy.

 

However, according to estimates by the Central Statistics Office (CSO), India’s GDP growth has moderated in FY 2016-17 to 7.1% from 7.9% recorded in the previous financial year. This happened largely owing to the demonetisation initiative that led to temporary de-circulation of money. The situation has largely normalised, following the Government’s re-monetisation process.

 

Snapshot

 

• India’s economy is the third largest in the world (in PPP terms), with the GDP at USD 8 trillion (Source: World Bank)

 

• In FY 2016-17, the agricultural sector recorded an encouraging growth of 4.1% on a y-o-y basis, thanks to a normal monsoon.

 

• In contrast, the industrial sector grew by 5.2%, whereas the service sector growth was 8.8%.

 

• The performance of the external sector has shown signs of improvement from the 3rd quarter of FY 2016-17. This improvement can be attributed to economic normalisation of the global economy.

 

• The total FDI investments in India received during FY 2016-17 rose 18% on a y-o-y basis to USD 46.4 billion, indicating that the Government’s effort to improve the ease of doing business and relaxation in FDI norms are yielding positive outcomes.

 

Outlook

 

The growth momentum should rise, driven by the Government’s policy initiatives in areas such as taxation (GST), foreign direct investment (FDI), and the ease of doing business, among others Other major factors helping India stay as a bright spot in the global economic landscape include the lower global oil price, with positive impact on the country’s import bill, a well-regulated monetary policy by the Reserve Bank to stabilise prices, and improving fiscal condition. The Government’s endeavour to drive a bigger as well as a cleaner GDP is expected to augur well for the economy in the medium and long terms.

 

The growth recovery has primarily happened due to discretionary spending, public investment and FDI reforms. The introduction of GST and higher outlays in the Budget 2017 are expected to drive growth as well.

 

 

STEEL SECTOR

 

Global Steel Sector

 

The global steel consumption grew by just 1% on a y-o-y basis to 1.52 billion tonnes in CY 2016. Although the figure declined in 1Q CY 2016, it started improving from 2Q CY 2016 and accelerated during 4Q CY 2016. This happened mainly due to an improving apparent consumption in China where the Government’s mini stimulus measures drove buoyancy in infrastructure investment and the housing market. The apparent consumption in China appeared in the green than the largely expected negative 4%. However, the statistic remained depressed in CIS, Middle East, Africa and Americas.

 

The global crude steel production grew marginally at 0.8% y-o-y to 1.63 billion tonnes in CY 2016. China, India, Turkey and Ukraine were the only four countries among the top 10 steel-producing nations to witness growth in steel production in CY 2016. During the year, China recorded a 1.2% y-o-y increase in production, as the world’s largest producer reversed the decline, it witnessed in Jan-Feb 2016. Crude steel production decreased in Europe, the Americas and Africa.

 

However, the global crude steel output grew strongly at 3.3% y-o-y in second half of the year with increase in all major steel producing regions except South America, despite the fact that the global steel industry continues to face headwinds of overcapacity and weak demand. The production growth in China further accelerated to 3% y-o-y in the second half of the year.

 

The global steel prices started recovering in 1Q CY 2016 with:

 

a) broad-basing of trade remedial actions across other countries, which started in CY 2015; b) sudden spike in iron ore prices in March 2016 beginning; c) tightness in physical markets in China ahead of enforced production cuts during an international horticultural exposition; d) restocking demand led by infrastructure and construction sectors in China with Chinese Government’s thrust on stimulus. This rise in global steel prices in March-April 2016 drove a sharp increase in steel production in all major regions during 2Q CY 2016 (except Europe and South America). Global steel capacity utilisation in June 2016 jumped to 71.8%.

 

The countries with export focused steel industry like China, Japan, Korea and Russia continued to flood global steel markets with exports at predatory prices. The Japanese and Korean export prices remained at a discount, compared to the respective domestic market prices. With surge in production not being supported by underlying demand, steel prices started declining towards the end of 2Q CY 2016. However, with a sharp surge in coking coal prices from August-September 2016 on the back of tightness in physical markets, steel prices again moved up, reflecting a movement in raw material prices. The steel prices continued to firm up until March 2017 with 1Q CY 2017 coking coal contract price settling at USD 285/t and jump in seaborne iron ore prices.

 

Outlook

 

According to the World Steel Association’s forecasts, the global apparent consumption of finished steel is expected to grow by 20.2 million tonnes i.e. 1.3% to 1.54 billion tonnes in CY 2017. The apparent consumption in China is expected to remain flat at 681 million tonnes. The steel consumption in Emerging and Developing economies (ex-China) is expected to increase by 4% to 452.7 million tonnes. As for the developed economies, consumption is expected to grow by 0.7% to 401.5 million tonnes. The optimism for demand recovery is based on the following factors:

 

Developed markets

 

The new US administration has promised to unveil an ambitious infrastructure package, which will include building new roads, highways, bridges, airports, tunnels and railway lines across the country. This is expected to boost steel demand significantly. Taking a cue from a resurging global economy and a weak yen, Japan’s steel demand is also expected to recover in a stable manner. While Europe is still at the cusp of a political turnaround, positive developments are expected with the current monetary policy. Some stability in the region is bound to garner future investments.

 

The recent French election that has selected a centrist leader, who is supportive of free trade, is a welcome change.

 

China

 

China’s economy is expected to see managed growth deceleration and restriction by more than 20 cities on property market since March 2017 point to lower steel demand going forward. WSA has also forecasted only a flat demand scenario in China in CY2017

 

 

 

 

Emerging countries (ex-China):

 

Emerging countries of the world contribute to 30% of the total global steel demand. Except for the possible currency volatility risk dependent on the US dollar, the ASEAN nations are expected to throw a solid growth year. A stabilising trend is evident in BRICS nations such as Russia and Brazil, which are likely to put forth modest growth figures. India is also expected to grow encouragingly, even though growth will be marginally stunted due to demonetisation.

 

Downside risks to this outlook emanate from the high corporate debt and real estate market situation in China, Brexit uncertainties and possible further escalation of instability in some regions. Meanwhile, raw materials price volatility is expected to subside with increased availability unlike in CY2016. Trade remedial measures should continue to influence trade flows, and, in turn, regional steel price. Thus, short-term remedial actions alone will not suffice, proactive measures need to be adopted for sustainable industry growth.

 

 

Key Sectors Determining Steel Demand Oil and Gas

 

Globally, the industry is yet to witness a return to sustainable equilibrium in terms of demand and supply. However, the OPEC decision to cut production should help accelerate the drawdownof global oil inventories, even if OPEC countries do not completely deliver on their announced production cuts. With the oil price issue being tackled, the sector will see continued investments and should create opportunities for the steel industry.

 

Metal and Mining

 

The global mining industry’s value and production growth outlook for CY 2017 will gradually improve over the course of the year as metal prices are likely to trend higher over the coming quarters. According to estimates, an average growth rate of 13.5% between CY 2017 and CY 2020 will represent a significant improvement.

 

Infrastructure

 

Globally, an average USD 3.3 trillion is to be spent to sustain the current rates of growth. Emerging economies alone will account for 60% of the figure. Thus, the steel industry can expect further demand from this sector.

 

Capital Goods

 

According to the IMF’s World Economic Outlook, after several consecutive quarters of lacklustre growth, capital goods industry along with consumer durables recovered in late 2016; and the trend is expected to continue. Since steel is a major raw material for manufacturing machinery, this industry can drive steel demand sector.

 

Indian Steel Sector

 

During the year, India’s steel sector was impacted by intense competitive pressure with a surge in domestic steel production and elevated level of steel imports at predatory pricing. In FY2016-17, India’s crude steel production grew by 8.5% y-o-y to 97.4 million tonnes. India imposed ‘Minimum Import Price’ (MIP) in Feb 2016 on various iron and steel products, after seeing that the provisional safeguard duty of hot rolled sheet failed to have a desirable impact on unbridled and unfair flow of steel imports into the country. This was an emergency provision, which provided some relief to the industry.

 

Later on the Government imposed provisional anti-dumping duty on: hot rolled and cold roll products in August 2016; wire rods in November 2016; and colour coated rods in January 2017 as the industry needed adequate, swifter and longer shelf-life trade remedial measures to check unbridled and unfair steel imports. India also notified final safeguard duty on hot rolled sheets and plates in November 2016. However, steel imports remained at around 8 million tonnes on an annualised basis, despite these trade remedial measures. The domestic steel industry suspects circumvention of these trade remedial measures. Therefore, a stringent monitoring mechanism is required.

 

The situation was further aggravated by the fact that the apparent finished steel consumption in the country grew by just 2.6% y-o-y for the same period. India’s steel demand was expected to gather momentum in the second half of FY2016-17, driven by the Government’s measures to drive the economy and manage quantifiable progress on various policy reforms. Normal monsoon and the Seventh Pay Commission announcements were also likely to drive consumer discretionary spending. However, the steel demand did not to see the desirable upswing in the second half of the year, initiative. This led to a liquidity crunch and a contraction of the major consuming sectors such as real estate.

 

However, this does not negate the fact that the long-term potential of the Indian steel industry remains bright. The opportunities for the industry have been identified and efforts are being taken by both public and private entities to achieve sustainable growth.

 

Major Changes in the Regulatory Landscape in CY2016

 

2016 was the year of reforms in the Indian steel industry. The timely remedial measures by the Indian Government, shielded the Indian steel sector from succumbing to external threats of dumping and uniform trade. The measures taken comprise:

 

BIS (Bureau of Indian Standards) Norms

Last year, the BIS norms were laid down for the steel industry and production of steel adhering to those norms was made mandatory. The import of steel was also restricted to such overseas firms that had acquired the BIS license to export to India. This reform sought to bring consistency and improvement in steel quality to compete with international standards.

 

Annulling Classification

To remove the stigma of using steel produced by primary steelmakers in Government projects and provide equal opportunity to all steelmakers, the classification of steelmakers as primary, secondary and integrated was scrapped by the Government. This is widely seen as a timely measure to ensure a level-playing field to all players.

 

Railway Freight Reforms

In May 2016, the Government removed the differential railway freight for the transportation of iron ore and pellets for domestic use and exports. The reform gave the much-needed boost to iron ore exports. Such a move may not augur well for steel producers, as it does not differentiate between quality of products.

 

 

Anti-dumping Measures

 

Various trade measures were put in place by the Government in 2016. Anti-dumping duties on China, the United States and other countries proved to be a significant relief for domestic steel producers. A Minimum Import Price (MIP) imposed on certain steel imports in February last year for a period of six months was later extended. This restricted low-priced steel imports into India to a very large extent.

 

Safeguard duty is another measure adopted by the Government. The Government defended its move at the WTO by asserting that the introduction of such a measure was imminent, and that the MIP would be phased out eventually.

 

 

ADVANTAGE INDIA

 

National Steel Policy 2017 (NSP):

 

The National Steel Policy (NSP) 2017, released by the Government, aims to increase steel production. Its objective is to make India self-sufficient in steel production and projects crude steel capacity of 300 million tonnes (mt) and per capita consumption of 160kg of finished steel by 2030-31. As a part of its focus area, the policy aims to address adequate local manufacturing to meet the demand for high-grade automotive steel, electrical steel, special steels and alloys for strategic applications by the same year.

 

The NSP has nine core elements to it. These are the following:

1. 300 MnT steel-making capacity by 2030

2. 160 per capita steel consumption by 2030

3. Preference for domestically produced steel in Government procurement

4. Export 24 MnT steel (10% of production) by 2030

5. Reduction of imports to nil by 2030

6. Domestically produce value added steel-CRGO, special steel, and alloys

7. Reduce import dependence on coking coal to 65% by 2030-31

8. Focus on pelletisation and installation of slurry pipelines and conveyors

9. Emphasis on BF/BOF technology

 

Over the next five years, the share of large players are expected to rise further to 53%, with most of them adding capacities through the blast furnace route. Even in the long term, steel sector analysts expect the blast furnace route to continue its dominance.

 

The revamped National Steel Policy, with ambitious targets, expects to garner an investment to the tune of ` 10 lakh crore. However, any forecasted growth for the future would mandate scaling up of facilities at the earliest. An impediment in achieving this would be a lack of greenfield lands. In the present regulatory environment, large steel companies could be the major beneficiaries of the policy.

 

There is an inherent direct impact of the NSP on the country’s development as much of the efforts will be driven towards increasing consumption in housing and infrastructure sectors. The new policy, if properly directed, can certainly equip the domestic steel industry, making it globally competitive. With the introduction of the NSP and a supportive business environment, the steel makers of the nation can capitalise well on the same, building capacity for the forecasted demand.

 

In India, overall consumer discretionary spending, public capex on ‘Rurban’ infrastructure development and foreign direct investment have continued to improve, supporting a gradual growth recovery The increased allocation for infrastructure development at INR 4 trillion in the Union Budget with thrust on affordable housing, water and gas pipelines, renewable energy and road sector, and expected recovery in rural demand on the back of normal monsoon expectations augurs well for steel consumption growth in the country. We expect the Indian steel demand to grow by around 4 million tonnes i.e. around 5% in FY2018.

Outlook

 

According to the World Steel Association, India will contribute 5.1 million tonnes out of the forecasted growth of around 20 million tonnes in global steel demand during CY 2017. In the short and medium term, the steel industry is set to grow at a 6-6.5% CAGR according to CRISIL. This sets the stage for steel producers to grow in line with the steel demand and at the same time capitalise on Government policies. With several budgetary allocations boosting infrastructure, the demand of steel and steel products is expected to rise. Another major policy reform favouring the Indian companies is the recent ruling that domestic steel will be given preference in Government projects as part of the Make in India programme.

 

BUSINESS REVIEW

 

JSW Steel registered significant growth, despite a relatively modest industry and GDP performance. The Company recorded its highest ever crude steel production at 15.80 million tonnes during FY 2016-17, surpassing the guidance of 15.75 mt. In FY 2016-17, JSW Steel has achieved consolidated sales of 14.7 million tonnes, a growth of 20% y-o-y in overall sales driven by highest ever export sales of 3.80 million tonnes covering more than 100 countries. This achievement comes on the backdrop of a sluggish steel demand growth at 2.6% y-o-y in India.

 

In the first nine months of FY 2016-17, the Company witnessed incremental domestic growth on the back of normal monsoon, domestic reforms, improved private consumption, higher automobile demand and better rural offtake. However, during later part of the year, some market segments faced temporary negative consumption shock due to demonetisation of high- denomination currency notes. Against this backdrop, the Company strategically enhanced export sales to offset domestic slowdown, with continued focus on enriching the product mix.

 

PRODUCT PERFORMANCE

 

JSW Steel has a diversified portfolio and the Company always aims to enrich its product mix with a sharp focus on value-added and special products sales. Such a strategy translates into higher profitability.

 

Flats

Flats comprised 74% of the product portfolio in FY2016-17. Overall flat product sales has registered a growth of 17% y-o-y with increased production volume. Better opportunity in the export market led to a growth for hot rolled, cold rolled and coated products.

 

Hot Rolled

Hot Rolled (HR) coils and sheet are manufactured in Vijayanagar and Dolvi plant. HR products comprised 43% of product portfolio in FY2016-17. During the year, sales volume of hot rolled coil and cut to length sheets / plates increased by over 16% y-o-y.

 

 

Key Sectors

JSW Steel is a leading supplier of steel to construction and infrastructure, industrial - engineering, pipes and tubes, automotive and energy sectors. During the year, JSW Steel has played a key role in supplying steel to some of the major water connectivity projects in the country.

 

Cold Rolled

Cold Rolled (CR) coils and sheets are manufactured in Vijayanagar Works. CR products comprised 17% of product portfolio in FY2016-17. During the year sales volume of CRCA grew by 27% y-o-y.

 

The Company’s CR products are well accepted by customers due to their superior surface appearance, uniform mechanical properties and excellent draw ability. The Company is the only steel producer with the capability to produce wider width up to 1870 mm and advanced-high strength steels grades up to tensile strength of 980 MPa in India.

 

Key Sectors

Cold Rolled (CR) products in India is significantly consumed by Automotive and Industrial & Engineering sectors.

 

The automotive sector witnessed a moderate growth of 6% during the year, with an overall production of vehicles in India, crossing the 25-million mark. For the first time, the Indian passenger vehicle and utility vehicle production crossed the 3 million mark. JSW Steel continues to focus on the automotive sector; and has grown by 11% y-o-y in the same period. Smooth and quick approvals of CR products from automotive companies resulted in a fast ramp-up of automotive steel sales. The cold rolled coils, galvanised and galvannealed steels supplies into the automotive customers in India, both multinational and domestic, leading to commercialisation of orders.

 

The Company has a Joint Venture with Marubeni Itochu Corporation for service Centres. The service Centre in Pune has ramped up in the last financial year and a second service Centre in North at Palwal is under commissioning. This tie-up will help the Company to service the processed steel requirements of the discerning automotive customers.

 

In the Packaging Sector, CR products received good response due to its superior surface, tight thickness tolerances and uniform mechanical properties.

 

Electrical Steel products are produced at state-of-the-art facility at Vijayanagar works. This steel has usage across sectors such as electric motors, generators, nuclear power station, power generation plant and equipment, domestic appliances, transformers and automotive electricals. Swift approvals from customers has resulted in a rapid ramp-up of capacity utilisation. JSW’s Steel exclusive service Centre provides customers ready-to-use electrical steel products. The Company is prepared for India’s journey towards energy efficiency and infrastructure development with expansion of grade range to high silicon alloy content, development of customised high permeability grades and a wide range of insulation coatings.

 

Galvanised

Galvanised coils and sheets are manufactured in Vijayanagar, Vasind, Tarapur and Kalmeshwar Works. Galvanised products comprised 11% of product portfolio in FY2016-17.

 

Key Sector

Galvanised products in India are significantly consumed by the construction and infrastructure and consumer durables sectors.

 

Eco-friendly Zero Spangle Organic coated ROHS compliant GI produced at the Company’s Vijayanagar facility was introduced during the second half of the financial year. The product has been well accepted and approved by all major appliance, panel and duct manufacturers.

 

Solar Industry holds a lot of promise with the Government of India targeting 100 GW of capacity by 2022. Keeping in mind the tough operating environment of solar structures, the Company has introduced a special grade coated product- JSW GALVOS, to increase the life of the structures. Galvalume in the thickness range of 1.5 mm has been specifically developed for solar applications. Our efforts have ensured that every second solar structure is made with JSW Coated Steel. We are collaborating with few solar developers of international repute to offer customised solutions for their global projects.

 

Colour Coated

Colour coated coils, sheets and profiles are manufactured in Vasind, Tarapur and Kalmeshwar Works. Colour Coated products comprised 3% of product portfolio in FY 2016-17. During the year, the total sales volume of colour coated products increased by 15% y-o-y.

 

Key Sectors

Major consumers of Colour Coated products in India are Construction and Infra and Consumer Durables sector. JSW Colouron+ and JSW Pragati are colour coated brands of JSW Steel and enjoy high market share in semi-urban and rural region catering to the needs of Individual Home Builder (IHB) segment.

 

Appliance industry Continued to grow at more than 11%, despite effects of demonetisation faced during the third quarter of the financial year. The Company has made substantial developments in the appliance sector utilizing its state-of-the-art appliance grade coating line at Vasind. Colour coated sheets from the Company are approved by all large appliance players. As a part of the Government’s Make in India drive, focused efforts are being made to develop VCM door panels for refrigerators and washing machines. Through joint product development initiatives with few appliance players, we have introduced zinc aluminium coated products as an alternative to regular galvanised product, thereby offering longer product life cycle to its customers. Special IF grade steel was developed and commercialised to cater to the increasing demand for dish antennas.

 

Longs

Long products comprised 21% of the product portfolio in FY 2016- 17. During the year, long product sales increased by 13% y-o-y.

 

TMT

TMT Rebars are manufactured in Vijaynagar Works and Dolvi Works. It comprised 14% of product portfolio during FY 2016 17. During the year, the total sales volume increased by 19% y-o-y. JSW Neosteel, the TMT brand, has increased penetration in semi-urban and rural areas with substantial business volumes from South and West India.

 

Key Sectors

JSW Neosteel was used in major projects in the country from Metro railway projects, Indian Railway Projects, Aerospace, Defence projects, Port and Airport Projects, Expressways and Highways and Critical atomic power projects. The Company also caters to prominent educational institutions, hospitals, IT Parks and high rises.

 

JSW is also proud of being a part of India’s growth story through supplying steel to metro rail projects in various cities, Chennai, Mumbai, Delhi, Kochi, Nagpur, Ahmedabad, Jaipur and Lucknow to name a few.

 

 

Alloy Steel

Alloy steel products are manufactured at JSW Salem Works. The Company is the largest domestic producer of spring steels flats, alloy steel rounds and bars and alloy steel wire rods.

 

Product Development Highlights

Twenty new grades of special steel were approved, which included high-value alloyed and micro alloyed steel for various components of automotive engine, transmission, bearings and suspension.

 

 

Retail Initiatives

The Company’s retailer network expansion was critical during the year to reach out to large parts of India. Approximately 7,300 retail outlets, covering 575 districts across India, have created a strong foundation to leverage growth opportunities in the coming years. New distributors were further appointed to build a stronger network. As the volumes stabilise, the Company is expanding its retail footprint to further penetrate and focus into each micro market.

 

TMT Rebars received major focus during the year in retail with sales increasing, despite direct effect on demand by slow-down in real estate and demonetisation.

 

Brand Building

The Company has been undertaking focused brand-building initiatives in TMT Rebar and Coated products categories. This year, emphasis was on engineers, retailers and distributors, apart from high-impact initiatives like ad screening in cinemas during blockbuster movies, extensive rural hoarding campaign, hoardings at strategic locations, wall painting and mobile vans.

 

 

Loyalty Programmes

JSW Privilege Club for Distributors was launched during the year. The programme aims to connect the families of the distributors to the Company and encourage community activities, fulfil training needs and hold special events. A Privilege Club for Engineers was also launched, aiming to build the knowledge base of steel usage and promote usage of modern high-quality TMT Rebars. The Company conducted influencer meets across the length and breadth of the country.

 

 

FINANCIAL REVIEW

 

Standalone

 

The Company’s revenues from operations in FY 2016-17 increased by 39% from INR 408590.000 Million to INR 569130.000 Million, primarily due to an increase in realisations and increase in sales volumes by 22%. The Company undertook multiple performance improvement initiatives during the year – from diversified sourcing strategy, optimisation of logistics costs, procurement costs, to focus on yields and productivity. As a result, the Operating EBITDA for the year grew by 81% on y-o-y basis and EBITDA margin (on net revenue from operations) stood at 22.1%. The Company registered a net profit after tax of INR 35770.000 Million.

 

The Company’s total net debt gearing was at 1.53 and Net Debt to EBITDA stood at 3.20x as on 31st March, 2017 as against 1.71 and 5.49x respectively that of previous year.

 

Revenue analysis

 

FY 2016-17 was particularly challenging for India’s steel industry. However, the company’s performance was relatively strong with improvement in absolute volumes in the domestic market. The Company has also focused on the exports market and increased the value-added products sales. The sales volume stood at 14.77 million tonnes, up by 22% vis-à-vis the previous year. The Company maintained its share in the domestic market, while exploring opportunity in the export market.

 

The other operating revenue was higher by INR 1650.000 Million, compared to the previous year due to higher sales tax incentives on increase in domestic sales realisation and recognition of revenue on export obligations fulfilled during the year as per Ind AS.

 

 

Other income

 

Other income for the year was lower primarily due to non-recognition of interest income on loan, which has been provided for in the earlier year given to subsidiaries.

 

Materials

 

The Company’s expenditure on materials increased by 40% from INR 200000.000 Million in FY 2015-16 to INR 279550.000 Million in FY 2016-17, primarily owing to 26% escalation in production and rise in the prices of coal and iron ore.

 

Employee benefits expenses

 

Employee benefits expenses increased by 22% to INR 11680.000 Million in FY 2016-17 from INR 9530.000 Million in FY 2015-16, due to the employment of additional workforce for increased capacity and annual increase in compensation.

 

Manufacturing and other expenses

 

Manufacturing and other expenses increased by 24% from INR 93850.000 Million to INR 116240.000 Million in FY 2016-17. This happened primarily because of an increase in sales volumes, higher power cost and freight costs. Power and fuel costs, (a 32% increase over last year, amounting to INR 10040.000 Million) rose owing to a 26% increase in crude steel production and increase in steam coal prices over that of previous year. The escalation in freight costs (by 46% over last year, amounting to INR 6470.000 Million) was due to higher sales volumes and higher exports. Increase in other manufacturing cost mainly relate to higher consumption of stores and spares (a 12% increase amounting to INR 2510.000 Million) and job-work/processing charges (a 34% increase amounting to INR 1620.000 Million) due to an increase in the scale of operations

 

Finance cost

 

Finance cost increased by INR 4240.000 Million to INR 36430.000 Million in FY 2016-17 from INR 32190.000 Million. The escalation was primarily due to capitalisation of expenditure incurred towards the expansion of capacities at Dolvi and Vijayanagar and consequent interest charge to profit and loss account; and additional borrowing cost for working capital due to increased scale of operations, rise in the prices of raw material and steel, offset by lower interest costs due to reduction in base rates and repayment of loans. However, the weighted average interest cost of debt was lower by 10 bps, at 7.40% vis-à-vis 7.50% as on March 31, 2016

 

Depreciation and amortization

 

The Company’s depreciation and amortisation cost increased by 6% to INR 30250.000 Million in FY 2016-17 from INR 28470.000 Million in FY 2015- 16, due to additional depreciation on capitalisation of expenditure incurred towards expansion of capacities at Dolvi and Vijayanagar and maintenance capital expenditure.

 

 

 

 

 

 

 

OPERATIONAL OVERVIEW

 

Vijayanagar Works

Located 380 kilometres away from Bengaluru at a village, Toranagallu North Karnataka in the Bellary-Hospet iron ore belt, Vijayanagar Works (spread over 10,000 acres) is a fully integrated steel plant well-connected with both Goa and Chennai ports. Leveraging cutting-edge technologies Vijayanagar Works has emerged as one of the most efficient in terms of conversion cost globally. This unit produces many steel products in the flat and longs segment.

 

Key Features

 

The first integrated steel plant in India to:

• Reach 12 MTPA capacity at a single location

• Use of Corex technology for hot metal production

• Have a large scale, low-grade iron ore beneficiation process

• Pelletisation based on the dry and wet process

• Only plant with combination of both non-recovery and recovery type of coke ovens

 

Initiatives Undertaken in FY 2016-17

Project Deep Drive

The Company implemented multiple cost optimisation initiatives under ‘Project Deep Drive’ at various business critical departments (logistics, agglomeration and iron making, power and others) leading to substantial cost savings.

 

 

BULK RAW MATERIAL PROCUREMENT

 

Raw Material Overview

 

During the year, iron ore and coal costs constituted the largest share of input costs. In FY 2016-17, commodity prices witnessed a large-scale volatility, due to which the steel sector was severely impacted. Coking coal spot prices recorded a sharp escalation from the end of August 2016 to the end of November 2016. This was driven by China’s curbs in coal production, as well as constrained supply due to multiple disruptions in Australia and China. The situation further worsened by the rush of steel producers to find supplies in the spot market and better than expected steel demand in China. The coking coal prices in the spot market increased from below US $120 per tonne in August 2016 to more than US $300 tonne in November 2016.

 

However, there has been greater normalisation of coking coal prices. This eased the pressure on sourcing and kept costs under control. The Company’s consistent focus and strategy to diversify raw material sourcing has produced the desired outcome, especially amid a turbulent commodities market. The Company has been able to strike the right balance between the sourcing of key raw materials and optimising input blend and cost.

 

Iron Ore

Global iron ore prices witnessed volatility during the year. To address uncertainties in iron ore supply, the Company relied on in-house beneficiation technology to transform low-grade iron ore into higher grade usable inputs. In addition, a strategy of ensuring raw material supply security from various regions is being actively pursued. Besides, commodity prices were partially hedged, derisking the volatility associated with imports.

 

 

Coal

The Company has placed adequate safeguards to mitigate any sudden volatility in coal prices. From contract provisions linked to markets with options, to continuous buying across troughs and peaks of a business cycle, raw material security has been fortified. The Company is making concerted efforts towards sourcing from different geographies and suppliers over the preceding few years with desired outcomes, without compromising production schedules.

 

Logistics

Another significant cost attached to bulk raw material is logistics. A focused drive across plants was initiated by the Company during the year to optimise costs from customised solutions. The initiative has already started yielding results. The Company has been able to optimise shipping freight to a large extent. The development of a cape compliant port to handle imported cargo added to the Company’s efficiency and cost competitiveness.

 

Raw Material Security

Backward integration and raw material security has always been important to the Company’s strategy. During FY 2016-17, The Company undertook many initiatives to safeguard its raw material enhance the Group’s raw material security and lead to integrated and efficient operations.

 

The new MMDR Act’s transparent and competitive bidding process has provided the Company an opportunity to enhance its raw material strategy further.

 

Key Highlights

• The Company has secured the Moitra coking coal block via an auction process. This mine has total extractable coal reserve of around 30 MnT; and the coking grading coal is in advanced stage of development.

 

• The Company has won five mines in the auctions of C-category iron ore mines in Karnataka. Of these five mines, two mines (0.71 MTPA capacity) will be operational by first half of FY 2017- 18 and the remaining three mines will be operational by the end of FY 2017-18. All five iron ore mines are expected to produce approximately 4.7 MTPA iron ore.

 

 

UNSECURED LOAN

 

Unsecured Loan

31.03.2017

(INR in Million)

31.03.2016

(INR in Million)

Long-term Borrowings

 

 

Term loans: secured

61087.100

78674.600

Deferred payment liabilities

732.600

849.500

Other loans:

 

 

Finance lease obligations

45203.700

38232.900

Preference shares

5366.200

6387.800

Unamortised upfront fees on borrowing

(1463.000)

(1884.200)

 

 

 

Short-term borrowings

 

 

Foreign currency loan from bank (unsecured)

1029.700

3185.100

Rupee loans from banks (unsecured)

4050.000

13620.000

Commercial papers (unsecured)

43160.000

0.000

Total

159166.300

139065.700

 

 

INDEX OF CHARGES:

 

SNo

SRN

Charge Id

Charge Holder Name

Date of Creation

Date of Modification

Date of Satisfaction

Amount

Address

1

G41299991

100090531

UNION BANK OF INDIA

16/03/2017

-

-

10000000000.0

239, Vidhan Bhavan Marg,Nariman PointmumbaiMH400021IN

2

G37842556

100081944

EXPORT-IMPORT BANK OF INDIA

28/02/2017

-

-

5000000000.0

CENTRE ONE BUILDING, FLOOR 21, WORLD TRADE CENTRECUFFE PARADEMUMBAIMH400005IN

3

G38803433

100084512

BANK OF BARODA

28/02/2017

-

-

5000000000.0

1ST FLOOR, 3 WALCHAND HIRACHAND MARGBALLARD PIERMUMBAIMH400001IN

4

C78237534

10618506

State Bank of India

22/01/2016

-

-

12500000000.0

The Capital, 16th Floor, Bandra Kurla Complex,Bandra (East)MumbaiMH400051IN

5

C78734019

10619473

ICICI BANK LIMITED

22/01/2016

-

-

7500000000.0

LANDMARKRACE COURCE CIRCLEALKAPURIBARODAGJ390015IN

6

C78235330

10618504

Punjab National Bank

22/01/2016

-

-

3500000000.0

Maker Tower E, Ground Floor, Cuffe ParadeMumbaiMH400005IN

7

C58998030

10580093

ICICI BANK LIMITED

22/06/2015

-

-

10000000000.0

LANDMARKRACE COURCE CIRCLEALKAPURIBARODAGJ390015IN

8

C54230875

10570589

SBICAP TRUSTEE COMPANY LIMITED

21/05/2015

-

-

10000000000.0

202, Maker Tower 'E',Cuffe ParadeMumbaiMH400005IN

9

C53964854

10570056

State Bank of India

27/04/2015

-

-

20000000000.0

The Capital, 16th Floor,Bandra Kurla Complex, Bandra (East)MumbaiMH400051IN

10

C58998485

10556047

IDBI TRUSTEESHIP SERVICES LIMITED

18/02/2015

22/06/2015

-

10000000000.0

Asian Building, Ground Floor, 17, R. Kamani Marg,Ballard EstateMumbaiMH400001IN

 

 

 

STATEMENT OF STANDALONE UNAUDITED FINANCIAL RESULTS FOR THE QUARTER AND NINE MONTHS ENDED 31ST DECEMBER 2017

 

        

 

 

Particulars

quarter ended

quarter ended

Nine Months ended

 

 

 

31.12.2017

30.09.2017

31.12.2017

1

 

Income from Operations

 

 

 

 

 

Sales/Income from Operations (Gross)

164530.000

148200.000

465350.000

 

 

b) Other Operating Income

430.000

490.000

1400.000

 

Total Income from Operations (Net)

164960.000

150350.000

466750.000

2

Expenses

 

 

 

 

a)

Cost of Materials consumed

90900.000

82730.000

258280.000

 

b)

Purchase of Stock-in-trade

3250.000

470.000

7350.000

 

c)

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

1000.000

4880.000

2050.000

 

d)

Employee benefit expenses

3140.000

3000.000

9390.000

 

e)

Finance Costs

8920.000

9190.000

27180.000

 

f)

Depreciation and amortization expense

7690.000

7720.000

22730.000

 

g)

Power and Fuel

12150.000

11890.000

35010.000

 

h)

Excise Duty Expenses

0.000

0.000

12590.000

 

g)

Other expenses

18360.000

17620.000

53700.000

 

Total Expenses

145410.000

137500.000

428280.000

 

 

 

 

 

 

Profit /(Loss) from ordinary activities after finance costs but before exceptional items

19550.000

12850.000

38470.000

 

Exceptional Items

2340.000

--

2340.000

9

Profit /(Loss) before tax

17210.000

12850.000

36130.000

10

Tax Expense

 

 

 

 

a) Current Tax

3440.000

2710.000

7240.000

 

b) Deferred Tax

2510.000

1690.000

4990.000

11

Net Profit /(Loss) after tax for the period

11260.000

8450.000

23900.000

 

 

 

 

 

 

Other Comprehensive Income:

 

 

 

 

A. i. Item that will not be reclassified to profit f loss

1730.000

870.000

2680.000

 

ii. Income tax relating to items that will not be reclassified to profit or loss

(10.000)

--

10.000

 

B. i. Item that will not be reclassified to profit f loss

1710.000

(750.000)

(1280.000)

 

ii. Income tax relating to items that will not be reclassified to profit or loss

(590.000)

260.000

440.000

 

Total Other Comprehensive Income

2840.000

380.000

1850.000

 

 

 

 

 

 

Total Comprehensive Income for the period/ year (Comprising profit and other Comprehensive Income for the period/year)

14100.000

8830.000

25750.000

 

 

 

 

 

 

Paid up equity share capital (Eq. shares of  INR 10/- each)

2410.000

2410.000

2410.000

 

 

 

 

 

 

Other Equity excluding revaluation reserves

 

 

 

 

 

Earnings per share (before/after extraordinary items) of  INR 10/- each

 

 

 

 

 

Basic

4.68

3.51

9.94

 

 

Diluted

4.66

3.50

9.89

 

Note:

 

1. During the quarter, a subsidiary of the Company has surrendered one of its iron ore mines in Chile considering its economic viability and accordingly the Company has reassessed the recoverability of the loans given to and investments made in subsidiaries and recognised an impairment provision of INR 2340.000 Million which has been disclosed as an exceptional item in the above results.


2.(i) In response to a petition filed by the iron ore mine owners and purchasers (including JSW Steel Limited [the Company]) contesting the levy of Forest Development Tax (FDT), the Honourable High Court of Karnataka vide its judgement dated 3 December 2015 directed refund of the entire amount of FDT collected by Karnataka State Government on sale of iron ore by private lease operators and National Mineral Development Corporation Limited (NMDC). The Karnataka State Government has filed an appeal before the Supreme Court of India ("SCI"). SCI has not granted stay on the judgement but stayed refund of FDT amounting to INR 15170.000 Million. The matter is yet to be heard by SCI. Based on merits of the case and supported by a legal opinion, the Company has not recognised provision for FDT of INR 10430.000 Million and treated it as a contingent liability.


(ii) The State of Karnataka on 27 July 2016, has amended Section 98-A of the Forest Act retrospectively substituting the levy as Forest Development Fee (FDF) instead of FDT. In response to the writ petition filed by the Company and others, the Honourable High Court of Karnataka has vide its order dated 4 October 2017, held that the amendment is ultra-vires the Constitution of India and directed the State Government to refund the FDF collected. The State Government has filed an appeal before the SCI, and based on merits of the case duly supported by a legal opinion and a favorable order from the High Court, the Company has not recognised provision for FDF amount of INR 4700.000 Million till 4 October 2017 (including paid under protest - Rs.255 crores) pertaining to the private lease operators & NMDC and treated it as contingent liability.


3. (i) Revenue from operations for periods up to 30 June 2017 includes excise duty, which is discontinued effectively 1 July 2017 upon implementation of Goods and Service Tax (GST). In accordance with 'Ind AS 18 - Revenue', GST is not included in Revenue from operations. In view of the aforesaid change in indirect taxes, Revenue from operations for the quarter and nine months ended 31 December 2017 is not comparable to the quarter and nine months ended 31 December 2016.


(ii) The Company's unit at Dolvi in the State of Maharashtra is eligible for a deferral of VAT/CST collected on sale of finished goods under Package Scheme of Incentive (PSI) - 1993, which is accounted as a Government grant. Consequent to introduction of GST with effect from 1 July 2017, VAT/CST has been subsumed into GST. The Maharashtra Government is in the process of revising the incentive scheme under the GST regime. Based on the precedents available, the Company believes that the incentive would continue to be extended in the GST regime and, accordingly, has recognised the government grant of INR 870.000 Million and INR 1860.000 Million as per the existing incentive scheme for the quarter and nine months ended 31 December 2017 respectively.


4. The Company is in the business of manufacturing steel products and hence has only one reportable operating segment as per Ind AS 108 - Operating Segments.


5. (i) Pursuant to the approval of the members accorded on 17 December 2016 by way of a Postal ballot, the Equity Shares of the Company having a face value of INR 10/- (Rupees Ten only) each were subdivided into 10 (Ten) Equity Shares having a face value of INR 1/- (Rupee One only) each. Accordingly, 241,722,044 equity shares of face value of INR 10 each were sub-divided into 2,417,220,440 equity shares of face value of Re. 1 each.

(ii) The earnings per share in respect of all the reported periods has been restated considering the aforesaid sub-division of shares.


6. The above results have been reviewed by the Audit committee and approved by the Board of Directors at their meetings held on 30 January 2018 and 31 January 2018 respectively. The Statutory Auditors have carried out a Limited Review of the results for the quarter and nine months ended 31 December 2017.

 

 

CONTINGENT LIABILITIES:

(INR in million)

PARTICULARS

31.03.2017

31.03.2016

a) Guarantees/ Standby letter of credit facility given on behalf of subsidiaries.

 

 

Guarantees

21179.200

21241.100

Standby letter of credit facility

30603.800

31839.800

Less: Loss allowance against aforesaid

(8860.000)

(9578.500)

b) Disputed claims/levies in respect of:

 

 

Excise Duty

3068.600

3053.900

Custom Duty

5749.500

4079.200

Income Tax

1689.400

1706.800

Sales Tax / VAT / Special Entry tax

1559.400

1559.400

Service Tax

4574.600

1420.600

Miscellaneous

0.500

0.500

Levies by local authorities

95.700

30.400

Claims by Suppliers and other parties

940.700

1099.800

c) Forest Development Tax/Fee:

 

 

Claims related to Forest Development Tax/Fee

12997.200

9669.800

Amount paid under protest

7258.400

6650.000

Note:

 

The Hon’ble High Court of Karnataka has granted partial relief by a judgement dated 3 December, 2015 in response to a petition filed by the mine owners and purchasers (including JSW Steel Limited) of iron ore contesting levy of Forest Development Tax (FDT) by the State of Karnataka. The High Court vide its judgment has directed refund of the entire amount of FDT collected by State Government on sale of iron ores by Private Lease operators and NMDC. The State Government has filed an appeal before the Supreme Court of India. The Hon’ble Court has not granted stay on the operation of the judgment but only stayed refund of FDT amounting to INR 15167.600 Million. The matter is yet to be heard by the Hon’ble Supreme Court of India. Based on merits of the case and supported by a legal opinion, the Company has not recognised FDT of INR 10428.900 Million, and treated the same as a contingent liability.

 

The State of Karnataka on 27 July, 2016, has amended Section 98-A of the Forest Act retrospectively and substituting the levy as Forest Development Fee instead of FDT. In response to the writ petition filed by the Company, the Hon’ble High Court of Karnataka has restrained the State of Karnataka from collecting FDF against furnishing of Bank Guarantee for an amount of 25%of the FDF. The State Government of Karnataka filed a Special Leave Petition with the Supreme Court of India (SCI) against the said order and SCI directed the Company and other parties to pay 50% of FDF as deposit and balance to be secured through a bond, by its order dated 13th February, 2017, and remitted the appeal back to the Karnataka High court with a direction to dispose the appeal within 6 months. Based on merits of the case and supported by a legal opinion, the Company has not recognized FDF of INR 2568.300 Million (Paid under protest - INR 608.400 Million) pertaining to the private lease operators and NMDC, and treated the same as a contingent liability.

 

 

FIXED ASSETS

 

Tangible Assets

 

·         Freehold Land

·         Leasehold Land

·         Building

·         Plant and Machinery

·         Furniture and Fixtures

·         Vehicles and Aircrafts

·         Office equipments

 

Intangible Assets

 

·         Software

·         Licences

 

 

 

CMT REPORT (Corruption, Money Laundering & Terrorism]

 

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

 

1]         INFORMATION ON DESIGNATED PARTY

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

 

2]         Court Declaration :

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

 

3]         Asset Declaration :

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

 

4]         Record on Financial Crime :

            Charges or conviction registered against subject:                                                           None

 

5]         Records on Violation of Anti-Corruption Laws :

            Charges or investigation registered against subject:                                                        None

 

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

            Charges or investigation registered against subject:                                                        None

 

7]         Criminal Records

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

 

8]         Affiliation with Government :

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

 

9]         Compensation Package :

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

 

10]        Press Report :

            No press reports / filings exists on the subject.

 

CORPORATE GOVERNANCE

 

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

 

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

 

 

CONTRAVENTION

 

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

 

 

FOREIGN EXCHANGE RATES

 

Currency

 
Unit

INR

US Dollar

1

INR 64.12

UK Pound

1

INR 89.17

Euro

1

INR 79.38

 

 

INFORMATION DETAILS

 

Analysis Done by :

VIV

 

 

Report Prepared by :

SUJ

 

SCORE FACTORS

 

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

 

RATING EXPLANATIONS

 

Credit Rating

Explanation

Rating Comments

A++

Minimum Risk

Business dealings permissible with minimum risk of default

A+

Low Risk

Business dealings permissible with low risk of default

A

Acceptable Risk

Business dealings permissible with moderate risk of default

B

Medium Risk

Business dealings permissible on a regular monitoring basis

C

Medium High Risk

Business dealings permissible preferably on secured basis

D

High Risk

Business dealing not recommended or on secured terms only

NB

New Business

No recommendation can be done due to business in infancy stage

NT

No Trace

No recommendation can be done as the business is not traceable

 

NB is stated where there is insufficient information to facilitate rating. However, it is not to be considered as unfavourable.

 

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 are as follows:

 

·         Financial condition covering various ratios

·         Company background and operations size

·         Promoters / Management background

·         Payment record

·         Litigation against the subject

·         Industry scenario / competitor analysis

·         Supplier / Customer / Banker review (wherever available)

 

 

 

 

 

 

 

 

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.