|
|
|
MIRA
INFORM REPORT
|
Report No. : |
496980 |
|
Report Date : |
12.03.2018 |
IDENTIFICATION DETAILS
|
Name : |
JINDAL STEEL AND POWER LIMITED |
|
|
|
|
Registered
Office : |
O. P. Jindal Marg Hisar-125005 Haryana |
|
Tel. No.: |
91-1662-222471-84 |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as
on) : |
31.03.2017 |
|
|
|
|
Date of
Incorporation : |
28.09.1979 |
|
|
|
|
Com. Reg. No.: |
05-009913 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
INR 915.024 Million |
|
|
|
|
CIN No.: [Company Identification
No.] |
L27105HR1979PLC009913 |
|
|
|
|
IEC No.: [Import-Export Code No.] |
3399000197 |
|
|
|
|
TIN No.: |
21172000530/ 20021905607/ 22484901419 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
AAACJ7097D |
|
|
|
|
GSTN : [Goods & Service Tax
Registration No.] |
27AAACJ9917A1ZP 22AAACJ7097D1ZQ |
|
|
|
|
PAN No.: [Permanent Account No.] |
AAACJ9917A |
|
|
|
|
Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchanges. |
|
|
|
|
Line of Business
: |
Subject
is engaged primarily into manufacturing of Iron and steel products and power.
(Registered activity) |
|
|
|
|
No. of Employees
: |
6071 (Approximately) |
RATING & COMMENTS
(Mira Inform has adopted New Rating mechanism w.e.f. 23rd
January 2017)
|
MIRA’s Rating : |
C |
|
Credit Rating |
Explanation |
Rating Comments |
|
C |
Medium High Risk |
Business dealings permissible preferably
on secured basis |
|
Status : |
Poor |
|
|
|
|
Payment Behaviour : |
Slow and Delayed |
|
|
|
|
Litigation : |
Exist |
|
|
|
|
Comments : |
Subject was incorporated in the year 1979 and is a part of the
diversified OP Jindal group which is one of India’s key steel producers and
has a sizeable presence in power generation and mining. For the financial year ended 2017 revenue of the company has been
increased by 23.47% but it has incurred loss from its operations during the
year under a review. Rating takes into consideration the delays in the debt servicing by
the company. The delays was largely attributable to stretched liquidity
position of the company following the delays in its debt refinancing plans
and materialization of its investment plans with weak cash flows from
operations. The company’s operational cash flows have deteriorated sharply
following the steel fall in realizations which coupled with continued high
debt servicing obligation has affected the liquidity position of the company. Rating further constrained by the cyclicality inherent in the steel
industry and regulatory risks related to the mining sector. Payment terms are slow and delayed. In view of aforesaid the company can be considered for business
dealings on safe and secured 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 (30.09.2017) |
Current Rating (31.12.2017) |
|
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 Borrowing = D |
|
Rating Explanation |
Lowest-credit-quality and very low prospects
of recovery. |
|
Date |
15.05.2017 |
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 12.03.2018
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 BY
|
Name : |
Mr. Abdul Sadique Ali |
|
Designation : |
Not Divulged |
|
Contact No.: |
91-9827478470 |
MANAGEMENT NON-COOPERATIVE: Tel. No.: 91-1662-222471 / 91-11-26188340
LOCATIONS
|
Registered Office : |
O. P. Jindal Marg, Hisar-125005, Haryana, India |
|
Tel. No.: |
91-1662-222471-84 |
|
Fax No.: |
91-1662-222476 |
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E-Mail : |
|
|
Website : |
|
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|
|
|
Corporate Office: |
Jindal Centre 12,
Bhikaiji Cama Place, New Delhi – 110066, India |
|
Tel. No.: |
91-11-26188340-50/
4146000/ 41462000 |
|
Fax No.: |
91-11-26161271 |
|
E-Mail : |
|
|
|
|
|
Factory 1: |
Village
Nisa, Chendipada Road, Angul – 759130, Odisha, India |
|
|
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Factory 2: |
Plot No. 751, Near Panchpukhi Chhaka, Simplipada, Angul – 759122, Odisha, India |
|
|
|
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Factory 3: |
Brick Making Plant, Khairpur Kharsia Road, Rajgarh, Chhattisgarh, India |
|
|
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Factory 4 : |
Karsia Road, Post Box No.16 Raigarh – 496001, Chhattisgarh, India |
|
Tel. No.: |
91-7762-304300/ 227001-10 |
|
Fax No.: |
91-7762-227021-23/ 227050 |
|
|
|
|
Factory 5 : |
13 KM Stone, G.E. Road, Mandir Hasaud, Raipur – 492001, Chhattisgarh, India |
|
Tel. No.: |
91-771-2471205/ 07/ 3054600 |
|
Fax No.: |
91-771-2471404/ 2471214/ 3054666 |
|
|
|
|
Factory 6 : |
Patratu At and Post- Balkudra, District - Ramgarh – 829143, Jharkhand, India |
|
Tel. No.: |
91-6553-275724/ 275726 |
|
Fax No.: |
91-6553-275744 |
|
|
|
|
Factory 7 : |
Iron Ore Pellet Plant, Commercial Office, Plot No. 507/365, Barbil, Joda – Highway Barbil, District - Keonjhar – 758035, Odisha, India |
|
|
|
|
Factory 8 : |
TRB Iron Ore Mines At P.O. BSE Tensa, District Sundergarh – 770042, Odisha, India |
|
Tel. No.: |
91-6625-236023/ 24 |
|
Fax No.: |
91-6625-236022 |
|
|
|
|
Factory 9 : |
Jindal Open Cast Coal Mine, Dhorabatta Dongamahua, Raigarh – 496001, Chhattisgarh, India |
|
|
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Structural Steel
Division/ Factory 10 : |
201 to 204 O.P. Jindal Industrial Park, SSD Punjipatra, Raigarh – 496001 Chhattisgarh, India |
|
|
|
|
Factory 11 : |
Chhendipada Road SH-63 At/Po: Jindal Nagar, District - Angul– 759111, Odisha, India |
|
|
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Factory 12 : |
PO Jindal Nagar, SH63 Chhendipada Road, Village Nisha, District - Angul-759111, Odisha, India |
|
|
|
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Branch Office 1 : |
Post Box No-86, Joda Barbil Highway, Barbil-758035, Odisha, India |
|
|
|
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Branch Office 2 : |
Jindal Enclave, 1st Floor, Behind Marathe Udyog Bhawan, New Prabhadevi
Road, Prabhadevi, Mumbai-400025, Maharashtra, India |
|
|
|
|
Marketing Office 1
: |
SCO-24, Sector 26, Madhya Marg, Chandigarh – 160019, India |
|
|
|
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Marketing Office 2
: |
Room No. 61 and 63, 6th Floor, Circular Court, 8 A.J.C. Bose Road, Kolkata – 700017, West Bengal, India |
|
|
|
|
Marketing Office 3
: |
#102, 1st Floor, Cyber Heights Road, No.2, Banjara Hills,
Hyderabad-500 034 Telangana, India |
|
|
|
|
Regional Offices : |
Located at: · Gurgaon · Ahmedabad · Pune · Kolkata · Patna · Visakhapatnam · Jaipur · Nagpur · Chennai · Chandigarh · Kanpur · Ludhiana · Jammu · Raipur · Bhubaneswar ·
Mumbai |
|
|
|
|
Retail Sales Team : |
Located at: · Gurgaon · Ahmedabad · Pune · Kolkata · Patna · Chennai · Trichy · Nagpur · Hyderabad · Bengaluru · Visakhapatnam · Cochin · Jaipur · Shimla · Jamshedpur · Guwahati · Kanpur · Ludhiana · Chandigarh · Jammu · Raipur · Srinagar · Bhubaneshwar ·
Mumbai |
|
|
|
|
Other Marketing
Offices : |
Located At: ·
Gurgaon
·
Raipur ·
Ranchi
·
Bhopal
·
Kochi ·
Kolkata
·
Jamshedpur
·
Bengaluru
·
Kanpur
·
Mumbai ·
Bhubaneswar
·
Chennai
·
Jaipur
·
Ludhiana ·
Ahmedabad
·
Pune
·
Nagpur
·
Patna
· Visakhapatnam |
DIRECTORS
As on 31.03.2017
|
Name : |
Mr. Naveen Jindal |
|
Designation : |
Wholetime Director |
|
Address : |
6 Prithviraj Road, New Delhi – 110001, India |
|
Date of Appointment : |
09.05.1998 |
|
DIN No.: |
00001523 |
|
|
|
|
Name : |
Mr. Ravikant Uppal |
|
Designation : |
Managing Director |
|
Address : |
841, 15th Main, 3rd Block, Koramangla, Bangalore – 560034, Karnataka, India |
|
Date of Appointment : |
01.10.2012 |
|
DIN No.: |
00025970 |
|
|
|
|
Name : |
Mr. Arun Kumar Purwar |
|
Designation : |
Director |
|
Address : |
C - 2303/4, Floor – 23, Ashok Tower, 63/7-4 Dr. SS Rao Road, Parel, Mumbai -400012, Maharashtra India |
|
Date of Appointment : |
30.07.2007 |
|
DIN No.: |
00026383 |
|
|
|
|
Name : |
Mr. Sudershan Kumar Garg |
|
Designation : |
Director |
|
Address : |
111, Akash Neem Marg, DLF, Phase II, Gurugram – 122002, Haryana, India |
|
Date of Appointment : |
09.11.2012 |
|
DIN No.: |
00055651 |
|
|
|
|
Name : |
Mr. Rajeev Rupendra Bhadauria |
|
Designation : |
Wholetime Director |
|
Address : |
A-103 Kshitij C/O Mahindra Gesco Ram Mandir Road, Opposite Movie Star Theatre, Goregaon (West), Mumbai – 400104, Maharashtra, India |
|
Date of Appointment : |
27.05.2015 |
|
DIN No.: |
00376562 |
|
|
|
|
Name : |
Mr. Hardip Singh Wirk |
|
Designation : |
Director |
|
Address : |
2 Andheria, Morh Mehrauli, New Delhi – 110030, India |
|
Date of Appointment : |
14.01.2009 |
|
DIN No.: |
00995449 |
|
|
|
|
Name : |
Mr. Shallu Jindal |
|
Designation : |
Director |
|
Address : |
6, Prithvi Raj Road, New Delhi – 110011, India |
|
Date of Appointment : |
27.04.2012 |
|
DIN No.: |
01104507 |
|
|
|
|
Name : |
Mr. Kuldip Chander Sood |
|
Designation : |
Additional Director |
|
Address : |
A-14/28A, DL,F Qutub Enclave, Phase – I, Gurugram – 122001, Haryana, India |
|
Date of Appointment : |
25.04.2017 |
|
DIN No.: |
01148992 |
|
|
|
|
Name : |
Mr. Anjan Barua |
|
Designation : |
Additional Director |
|
Address : |
H. No. 26, WNO 54 Nilgiri Path, Baghorbari Tiniali Po-Panjabari PS- Dispur Kamrup, Guwahati – 781037, Assam, India |
|
Date of Appointment : |
14.02.2017 |
|
DIN No.: |
01191502 |
|
|
|
|
Name : |
Mr. Ram Vinay Shahi |
|
Designation : |
Director |
|
Address : |
14 Factory Road, Block No. 1, Ground Floor, ADJ. Vardhman Mahavir Medical College, Safdarjung, Delhi – 110029, India |
|
Date of Appointment : |
15.10.2007 |
|
DIN No.: |
01337591 |
|
|
|
|
Name : |
Mr. Arun Kumar |
|
Designation : |
Director |
|
Address : |
E-202, Som Vihar, Sector – 10, R.K. Puram, New Delhi - 110022, India |
|
Date of Appointment : |
28.09.2010 |
|
DIN No.: |
01772163 |
|
|
|
|
Name : |
Mr. Dinesh Kumar Saraogi |
|
Designation : |
Wholetime Director |
|
Address : |
Plot No – 751, Similipada, Near Panchmukhi Chhak, Angul – 759122, Orissa, India |
|
Date of Appointment : |
09.11.2012 |
|
DIN No.: |
06426609 |
|
|
|
|
Name : |
Mr. Singh Dramar |
|
Designation : |
Additional Director |
|
Address : |
H. No. 18 Harnam Colony Vill - Gill Teh-Ludhiana West, District-Ludhiana, Ludhiana – 142028, Punjab, India |
|
Date of Appointment : |
25.04.2017 |
|
DIN No.: |
07800513 |
KEY EXECUTIVES
|
Name : |
Mr. Jagdish Patra |
|
Designation : |
Company Secretary |
|
Address : |
301 Kailash Tower, Kaushambi, Ghaziabad – 201010, Uttar
Pradesh, India |
|
Date of Appointment : |
08.08.2017 |
|
PAN No.: |
AHDPP2428H |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on December 2017
|
Category of
shareholder |
No.
of fully paid up equity shares held |
Shareholding
as a % of total no. of shares |
|
|
(A) Promoter & Promoter Group |
567784037 |
61.96 |
|
|
(B) Public |
348660197 |
38.04 |
|
|
Grand
Total |
916444234 |
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 |
18589884 |
2.03 |
|
|
NAVEEN JINDAL HUF |
2248230 |
0.25 |
|
|
R K JINDAL & SONS HUF |
791370 |
0.09 |
|
|
S K JINDAL AND SONS HUF |
1664610 |
0.18 |
|
|
PRITHVI RAJ JINDAL |
285150 |
0.03 |
|
|
URMILA BHUWALKA |
35960 |
0.00 |
|
|
PARTH JINDAL |
220620 |
0.02 |
|
|
ARTI JINDAL |
115080 |
0.01 |
|
|
URVI JINDAL |
92880 |
0.01 |
|
|
SMINU JINDAL |
64500 |
0.01 |
|
|
SEEMA JAJODIA |
7200 |
0.00 |
|
|
ABHYUDAY JINDAL |
177600 |
0.02 |
|
|
TRIPTI JINDAL |
97440 |
0.01 |
|
|
TARINI JINDAL HANDA |
96000 |
0.01 |
|
|
SANGITA JINDAL |
757290 |
0.08 |
|
|
SAVITRI DEVI JINDAL |
1116540 |
0.12 |
|
|
DEEPIKA JINDAL |
1010100 |
0.11 |
|
|
TANVI SHETE |
96000 |
0.01 |
|
|
NAVEEN JINDAL |
7871596 |
0.86 |
|
|
SUSHIL BHUWALKA |
37488 |
0.00 |
|
|
P R Jindal HUF |
1804230 |
0.20 |
|
|
Any Other
(specify) |
481135587 |
52.50 |
|
|
GOSWAMIS CREDITS & INVESTMENTS LIMITED |
1874400 |
0.20 |
|
|
OPELINA FINANCE AND INVESTMENT LIMITED |
91300393 |
9.96 |
|
|
SUN INVESTMENTS PVT LTD |
16800 |
0.00 |
|
|
JSW HOLDINGS LIMITED |
3685800 |
0.40 |
|
|
GAGAN INFRAENERGY LIMITED |
49709952 |
5.42 |
|
|
OPJ TRADING PRIVATE LIMITED |
187637898 |
20.47 |
|
|
JSL LIMITED |
2607453 |
0.28 |
|
|
DANTA ENTERPRISES PRIVATE LIMITED |
62238816 |
6.79 |
|
|
GLEBE TRADING PRIVATE LIMITED |
16246108 |
1.77 |
|
|
VIRTUOUS TRADECORP PRIVATE LIMITED |
64395867 |
7.03 |
|
|
NALWA STEEL AND POWER LIMITED |
1420000 |
0.15 |
|
|
NAVEEN JINDAL (AS A TRUSTEE OF GLOBAL
WISDOM TRUST) |
500 |
0.00 |
|
|
NAVEEN JINDAL (AS A TRUSTEE OF GLOBAL
VISION TRUST) |
500 |
0.00 |
|
|
NAVEEN JINDAL (AS A TRUSTEE OF GLOBAL
GROWTH TRUST) |
500 |
0.00 |
|
|
SAJJAN JINDAL, SANGITA JINDAL, PARTH
JINDAL (AS A TRUSTEE OF PARTH JINDAL FAMILY TRUST) |
100 |
0.00 |
|
|
SAJJAN JINDAL, SANGITA JINDAL (AS A
TRUSTEE OF SAJJAN JINDAL LINEAGE TRUST) |
100 |
0.00 |
|
|
SAJJAN JINDAL, SANGITA JINDAL (AS A
TRUSTEE OF SAJJAN JINDAL FAMILY TRUST) |
100 |
0.00 |
|
|
SAJJAN JINDAL, SANGITA JINDAL (AS A
TRUSTEE OF SANGITA JINDAL FAMILY TRUST) |
100 |
0.00 |
|
|
SAJJAN JINDAL, SANGITA JINDAL, TANVI SHETE
( AS A TRUSTEE OF TANVI JINDAL FAMILY TRUST) |
100 |
0.00 |
|
|
SAJJAN JINDAL, SANGITA JINDAL, TARINI
JINDAL (AS A TRUSTEE OF TARINI JINDAL FAMILY TRUST) |
100 |
0.00 |
|
|
Sub Total A1 |
499725471 |
54.53 |
|
|
A2) Foreign |
0.00 |
||
|
Individuals
(NonResident Individuals/ Foreign Individuals) |
825470 |
0.09 |
|
|
RATAN JINDAL |
203070 |
0.02 |
|
|
SARIKA JHUNJHNUWALA |
622400 |
0.07 |
|
|
Any Other
(specify) |
67233096 |
7.34 |
|
|
ESTRELA INVESTMENT COMPANY LIMITED |
7176000 |
0.78 |
|
|
JARGO INVESMENTS LIMITED |
7430400 |
0.81 |
|
|
NACHO INVESTMENTS LIMITED |
7440000 |
0.81 |
|
|
TEMPLAR INVESTMENTS LIMITED |
7437840 |
0.81 |
|
|
VAVASA INVESTMENTS LIMITED |
7404480 |
0.81 |
|
|
BEAUFIELD HOLDINGS LIMITED |
5991720 |
0.65 |
|
|
PENTEL HOLDING LIMITED |
3235496 |
0.35 |
|
|
MENDEZA HOLDINGS LIMITED |
7431060 |
0.81 |
|
|
SARMENTO HOLDINGS LIMITED |
7156740 |
0.78 |
|
|
JSL OVERSEAS LIMITED |
6529360 |
0.71 |
|
|
Sub Total A2 |
68058566 |
7.43 |
|
|
A=A1+A2 |
567784037 |
61.96 |
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/ |
37139570 |
4.05 |
|
|
L and T Mutual Fund Trustee Ltd-L And T
Monthly Income Plan |
10774414 |
1.18 |
|
|
Alternate
Investment Funds |
695200 |
0.08 |
|
|
Foreign
Portfolio Investors |
161036304 |
17.57 |
|
|
HSBC Pooled Investment Fund - HSBS Pooled
Asia Pacific Ex Japan Equity Fund |
10693417 |
1.17 |
|
|
Blackrock Global Funds Asian Dragon Fund |
21150771 |
2.31 |
|
|
HSBC Global Investment Funds - Indian
Equity |
11749818 |
1.28 |
|
|
Kotak Funds - India Midcap Fund |
9824897 |
1.07 |
|
|
Financial
Institutions/ Banks |
1950367 |
0.21 |
|
|
Insurance
Companies |
15453112 |
1.69 |
|
|
Any Other
(specify) |
8770 |
0.00 |
|
|
Sub Total B1 |
216283323 |
23.60 |
|
|
B2) Central
Government/ State Government(s)/ President of India |
0 |
0.00 |
|
|
Central
Government/ State Government(s)/ President of India |
3563500 |
0.39 |
|
|
Sub Total B2 |
3563500 |
0.39 |
|
|
B3)
Non-Institutions |
0 |
0.00 |
|
|
Individual share
capital upto INR 0.200 Million |
84628829 |
9.23 |
|
|
Individual share
capital in excess of INR 0.200 Million |
5827985 |
0.64 |
|
|
NBFCs registered
with RBI |
98250 |
0.01 |
|
|
Any Other
(specify) |
38258310 |
4.17 |
|
|
Clearing Members |
3360883 |
0.37 |
|
|
Bodies Corporate |
23241289 |
2.54 |
|
|
Foreign Individuals |
33480 |
0.00 |
|
|
NRI |
8910287 |
0.97 |
|
|
HUF |
2305575 |
0.25 |
|
|
Trusts |
406796 |
0.04 |
|
|
Sub Total B3 |
128813374 |
14.06 |
|
|
B=B1+B2+B3 |
348660197 |
38.04 |
|
BUSINESS DETAILS
|
Line of Business : |
Subject
is engaged primarily into manufacturing of Iron and steel products and power.
(Registered activity) |
||||||
|
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|
||||||
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Products : |
|
||||||
|
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Brand Names : |
Not Divulged |
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Agencies Held : |
Not Divulged |
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Exports : |
Not Divulged |
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Imports : |
Not Divulged |
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Terms : |
Not Divulged |
PRODUCTION STATUS NOT AVAILABLE
GENERAL INFORMATION
|
Suppliers : |
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Customers : |
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No. of Employees : |
6072 (Approximately) |
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Bankers : |
· Bank of Baroda 1st Floor, Bank of Baroda, Building 16, Sansad Marg, New Delhi-110001, India · ICICI Bank Limited Landmarkrace
Cource Circle, Alkapuri, Vadodara- 390015, Gujarat, India ·
Punjab
National Bank ·
State Bank
of Patiala ·
IDBI Bank
Limited ·
Axis Bank
Limited ·
HDFC Bank
Limited ·
Canara Bank · State Bank of India |
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Facilities : |
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Financial Institutions : |
· SBICAP Trustee Company Limited 711 7th Floor Ashoka Estate 24 Barakhamba Road New Delhi - 110001 India ·
Axis Trustee Services Limited Axis House
Bombay Dyeing Mills Compound Pandhurang Budhkar Marg Worli Mumbai – 400025
Maharashtra India |
|
|
|
|
Auditors : |
|
|
Name : |
Lodha and Company Chartered Accountants |
|
Address : |
12
Bhagat Singh Marg New Delhi - 110001 India |
|
Tel. No.: |
91-11-23710176/
23710177/ 23364671/ 2414 |
|
Fax No.: |
91-11-23345168/
23314309 |
|
E-Mail : |
|
|
|
|
|
Memberships : |
Not Available |
|
|
|
|
Collaborators : |
Not Available |
|
|
|
|
Subsidiaries : |
·
Jindal
Power Limited ·
Jindal
Steel Bolivia SA ·
Jindal
Steel and Power (Mauritius) Limited ·
Skyhigh
Overseas Limited ·
Everbest
Steel and Minings Holdings Limited ·
Jindal
Angul Power Limited ·
JB
FabInfra Limited ·
Trishakti
Real Estate Infrastructure and Developers Limited · Raigarh Pathalgaon Expressway Limited. [w.e.f. 18th October2016 |
|
|
|
|
Subsidiaries of
Jindal Power Limited : |
·
Attunli
Hydro Electric Power Company Limited ·
Etalin
Hydro Electric Power Company Limited ·
Jindal
Hydro Power Limited ·
Jindal
Power Distribution Limited ·
Ambitious
Power Trading Company Limited ·
Jindal
Power Transmission Limited ·
Jindal
Power Ventures (Mauritius) Limited ·
Kamala
Hydro Electric Power Co. Limited ·
Kineta
Power Limited ·
Uttam
Infralogix Limited ·
Jindal
Realty Private Limited [w.e.f. 31st March 2017] ·
Panther
Transfreight Limited a subsidiary of Uttam Infralogix Limited |
|
|
|
|
Subsidiary of
Skyhigh Overseas Limited : |
· Gas to Liquids International S.A |
|
|
·
|
|
Subsidiary of
Jindal Power Ventures (Mauritius) Limited: |
· Jindal Power Senegal SAU |
|
|
|
|
Subsidiary of JB
FabInfra Private Limited : |
· All tech Building System Limited |
|
|
·
|
|
Subsidiaries of
Jindal Steel and Power (Mauritius) Limited: |
·
Blue
Castle Ventures Limited ·
Brake
Trading (Pty) Limited ·
Enduring
Overseas Inc ·
Fire
Flash Investments (Pty) Limited ·
Harmony
Overseas Limited ·
Jin
Africa Limited ·
Jindal
(BVI) Limited ·
Jindal
Africa Investments (Pty) Limited ·
Jindal
Africa Liberia Limited ·
Jindal
Africa SA ·
Jindal
Botswana (Pty) Limited ·
Jindal
Investimentos LDA ·
Jindal
Investment Holding Limited. ·
Jindal
KZN Processing (Pty) Limited ·
Jindal
Madagascar SARL ·
Jindal
Mining and Exploration Limited ·
Jindal
Mining Namibia (Pty) Limited ·
Jindal
Steel and Minerals Zimbabwe Limited ·
Jindal
Steel and Power (BC) Limited ·
Jindal
Steel and Power(Australia) Pty Limited ·
Jindal
Tanzania Limited ·
Jindal
Zambia Limited ·
JSPL
Mozambique Minerais LDA ·
Jublient
Overseas Limited ·
Landmark
Mineral Resources (Pty) Limited ·
Osho
Madagascar SARL ·
PT
Jindal Overseas ·
Jindal
Shadeed Iron and Steel L.L.C ·
Sungu
Sungu Pty Limited ·
Trans
Asia Mining Pte. Limited ·
Vision
Overseas Limited ·
Wollongong
Coal Limited ·
Jindal
Steel DMCC · Jindal Mauritania SARL |
|
|
|
|
Associates : |
·
Nalwa
Steel and Power Limited ·
Prodisyne
(Pty) Limited · Thuthukani Coal (Pty) Limited |
|
|
·
|
|
Joint Ventures: |
·
Jindal
Synfuels Limited ·
Shresht
Mining and Metals Private Limited · Urtan North Mining Private Limited |
|
|
|
|
Other Significant
influences: |
· OPJ Trading Private Limited |
|
|
|
|
Post-Employment
Benefit entity: |
· Jindal Steel and Power Limited EPF Trust |
|
|
|
|
Enterprises over
which Key Management Personnel and their relatives exercise significant
influence and with whom transactions have taken place during the year: |
·
Jindal
Stainless Limited ·
Jindal
Industries Limited ·
Bir
Plantation Limited ·
India
Flysafe Aviation Limited ·
Minerals
Management Service (India) Private Limited. ·
Jindal
Saw Limited ·
JSW
Steel Limited ·
Rohit
Tower Building Limited ·
JSW
Energy Limited ·
JSW
Projects Limited ·
JSW
Steel Coated Product Limited. ·
JSW
Severfield Structures Limited. ·
Jindal
Realty Private Limited (Upto 30 March 2017 subsidiary wef 31 March 2017) |
|
|
|
|
Others: |
·
Belde
Empreendimentos Mineiros LDA a subsidiary of JSPL Mozambique Minerais LDA ·
Eastern
Solid Fuels (Pty) Limited a subsidiary of Jindal Mining Exploration Limited ·
PT
BHI Mining Indonesia a subsidiary of Jindal Investment Holding Limited ·
PT
Sumber Surya Gemilang a subsidiary of PT.BHI Mining Indonesia ·
PT
Maruwai Bara Abadi a subsidiary of PT.BHI Mining Indonesia ·
Jindal
Mining SA (Pty) Limited a subsidiary of Eastern Solid Fuels (Pty) Limited ·
Bon-Terra
Mining (Pty) Limited a subsidiary of Jindal (BVI) Limited ·
CIC
(Barbados) Holding Corpa subsidiary of Jindal (BVI) Limited ·
CIC
Energy (Bahamas) Limited a subsidiary of Jindal (BVI) Limited ·
Jindal
Energy (Botswana) Pty Limited a subsidiary of Jindal (BVI) Limited ·
Jindal
Energy (SA) Pty Limited a subsidiary of Jindal (BVI) Limited ·
CIC
Transafrica (Barbados) Corpa subsidiary of Jindal (BVI) Limited ·
Jindal
Resources (Botswana) Pty Limited a subsidiary of CIC Transafrica (Barbados)
Corp ·
Trans
Africa Rail (Pty) Limited a subsidiary of CIC Transafrica (Barbados) Corp ·
Sad-Elec
(Pty) Limited a subsidiary of Jindal Energy (SA) Pty Limited ·
CIC
(Barbados) Mining Corp a subsidiary of CIC (Barbados) Holding Corp ·
CIC
(Barbados) Energy Corp a subsidiary of CIC (Barbados) Holding Corp ·
Meepong
Resources (Mauritius) (Pty) Limited a subsidiary of CIC (Barbados) Mining
Corp ·
Meepong
Resources (Pty) Limited a subsidiary of Meepong Resources (Mauritius) (Pty)
Limited ·
Meepong
Energy (Mauritius) (Pty) Limited a subsidiary of CIC (Barbados) Energy Corp ·
Meepong
Energy (Pty) Limited a subsidiary of Meepong Energy (Mauritius) (Pty) Limited ·
Meepong
Service (Pty) Limited a subsidiary of Meepong Energy (Pty) Limited ·
Meepong
Water (Pty) Limited a subsidiary of Meepong Energy (Pty) Limited ·
Peerboom
Coal (Pty) Limited a subsidiary of Jindal Africa Investment (Pty) Limited ·
Shadeed
Iron and Steel Company Limited a subsidiary of Jindal ·
Shadeed
Iron and Steel LLC ·
Southbulli
Holding Pty Limited a subsidiary of Wollongong Coal Limited ·
Oceanic
Coal Resources NL a subsidiary of Wollongong Coal Limited ·
Wongawilli
Coal Pty Limited a subsidiary of Oceanic Coal Resources NL ·
Koleko
Resources (Pty) Limited a subsidiary of Jindal Africa Investment (Pty)
Limited ·
Legend
Iron Limited a subsidiary of Jindal Mining & Exploration Limited ·
Cameroon
Mining Action (CAMINA) SA a subsidiary of Legend Iron Limited · Enviro Waste |
CAPITAL STRUCTURE
After 22.09.2017
Authorised Capital : INR 3000.000
Million
Issued Subscribed & Paid-up Capital : INR 916.444 Million
As on 31.03.2017
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
2000000000 |
Equity Shares |
INR 1/- each |
INR 2000.000 Million |
|
|
|
|
|
Issued Subscribed & Paid-up Capital :
|
No. of Shares |
Typ0065 |
Value |
Amount |
|
|
|
|
|
|
915024234 |
Equity Shares |
INR 1/- each |
INR 915.000
Million |
|
|
|
|
|
(a) Reconciliation of the number of shares
outstanding at the beginning and end of the year
|
Equity Shares |
As at 31st March 2017 |
|
Shares outstanding at the beginning of the year |
914903800 |
|
Add: Equity Shares issued under Employees Stock Purchase Scheme |
120434 |
|
Shares outstanding at the end of the year |
915024234 |
(b) Terms/rights
attached to equity shares
The
Company has only one class of equity shares having par value of INR 1 per share. Each holder of
equity share is entitled to one vote per share. The Company declares dividend
in Indian Rupees. The dividend if any proposed by the Board of Directors is
subject to approval of the Shareholders in the ensuing Annual General Meeting.
In the
event of liquidation of the Company the holders of equity shares will be
entitled to receive remaining assets of the Company after payment of all
liabilities. The distribution will be in proportion to the number of equity
shares held by the shareholders.
c) Aggregate number
of bonus shares issued shares issued for consideration other than cash and
shares bought back during the period of five years immediately preceding the
reporting date:
In
accordance with Section 77 of the Companies Act1956 and buy back regulations of
SEBI the Company during the financial year 2013-14 bought back and extinguished
19959584 equity shares of INR 1
each and created a Capital Redemption Reserve of INR 20.000 Million out of surplus in
the Statement of Profit and Loss. The premium on buy back of INR 4988.000 Million had been
utilised from Securities Premium Account INR 1229.600 Million and out of surplus in Statement of Profit and
Loss INR 3758.400 Million.
During
the five years immediately preceding 31st March 2017 the Company has not
allotted any equity shares as bonus shares and also not issued any share for
consideration other than cash.
In
addition the Company allotted 594353 nos. equity shares during the preceding
five years under its various Employees Stock Option Schemes / Employee Stock
Purchase Scheme.
d) Details of
shareholders holding more than 5% shares in the Company
|
Name of the
shareholder |
As at 31st March 2017 |
|
|
Equity Shares of
INR 1 each fully paid |
No. of Shares |
% holding |
|
Danta Enterprises Private Limited |
62238816 |
5.43% |
|
Gagan Infraenergy Limited |
49709952 |
5.43% |
|
Opelina Finance and Investment Limited |
91300393 |
9.98% |
|
OPJ Trading Private Limited |
187637898 |
20.51% |
|
Virtuous Tradecorp Private Limited |
64395867 |
7.04% |
As per
records of the Company including its register of shareholders/members and other
declarations received from shareholders regarding beneficial interest the above
shareholding represents both legal and beneficial ownership of shares.
e) Employees Stock
purchase Scheme
In
accordance with SEBI (Share Based Employees Benefits) Regulations 2014 and
pursuant to JSPL ESPS 2013 Scheme the Nomination and Remuneration Committee has
vide its resolution dated 27.01.2017 offerred and the Corporate Management
Committee of the Board vide its resolution dated 03.02.2017 allotted 120434
nos. equity shares of INR 1
each at a premium of INR 81.20
each to Mr. Ravi Uppal Managing Director and Group CEO. Out of total offerred
150000 nos. equity shares so far the Company had during the earlier year
allotted 29566 nos. equity shares of INR 1 each.
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 |
915.000 |
914.900 |
914.900 |
|
(b) Reserves & Surplus |
216747.000 |
229741.800 |
124197.200 |
|
(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) |
217662.000 |
230656.700 |
125112.100 |
|
|
|
|
|
|
(3) Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
164038.800 |
164115.700 |
185074.200 |
|
(b) Deferred tax liabilities
(Net) |
39836.300 |
44527.300 |
16585.900 |
|
(c) Other long term
liabilities |
35376.200 |
2907.000 |
2445.200 |
|
(d) long-term provisions |
376.000 |
278.100 |
318.900 |
|
Total
Non-current Liabilities (3) |
239627.300 |
211828.100 |
204424.200 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a) Short term borrowings |
77594.600 |
75034.700 |
76076.300 |
|
(b) Trade payables |
23875.600 |
19478.400 |
14430.200 |
|
(c) Other current liabilities |
42023.100 |
68584.900 |
40730.700 |
|
(d) Short-term provisions |
385.500 |
384.700 |
928.800 |
|
Total
Current Liabilities (4) |
143878.800 |
163482.700 |
132166.000 |
|
|
|
|
|
|
TOTAL |
601168.100 |
605967.500 |
461702.300 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i) Tangible assets |
414023.800 |
429399.400 |
271346.900 |
|
(ii) Intangible Assets |
736.400 |
835.100 |
803.900 |
|
(iii) Capital work-in-progress |
75046.500 |
56529.900 |
35327.700 |
|
(iv) Intangible assets under
development |
245.800 |
327.500 |
303.500 |
|
(b) Non-current Investments |
14852.500 |
14769.400 |
14869.600 |
|
(c) Deferred tax assets (net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
0.000 |
0.000 |
23159.100 |
|
(e) Other Non-current assets |
8481.900 |
9485.700 |
10.800 |
|
Total
Non-Current Assets |
513386.900 |
511347.000 |
345821.500 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a) Current investments |
0.000 |
0.000 |
10000.000 |
|
(b) Inventories |
18869.700 |
24390.600 |
37200.300 |
|
(c) Trade receivables |
7972.000 |
8308.600 |
13212.700 |
|
(d) Cash and cash equivalents |
1801.700 |
3486.200 |
2889.700 |
|
(e) Short-term loans and
advances |
7875.000 |
8040.100 |
45040.400 |
|
(f) Other current assets |
51262.800 |
50395.000 |
7537.700 |
|
Total
Current Assets |
87781.200 |
94620.500 |
115880.800 |
|
|
|
|
|
|
TOTAL |
601168.100 |
605967.500 |
461702.300 |
PROFIT
& LOSS ACCOUNT - STANDALONE
|
|
PARTICULARS |
31.03.2017 |
31.03.2016 |
31.03.2015 |
|
|
SALES |
|
|
|
|
|
Income |
154936.100 |
146933.400 |
133903.500 |
|
|
Other Income |
88.800 |
234.700 |
2964.400 |
|
|
TOTAL
|
155024.900 |
147168.100 |
136867.900 |
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
Cost of Materials Consumed |
50266.500 |
50709.900 |
43715.600 |
|
|
Purchases of Stock-in-Trade |
1320.400 |
2413.600 |
2846.900 |
|
|
Changes in inventories of
finished goods work-in-progress and Stock-in-Trade |
3323.000 |
2965.300 |
(1537.200) |
|
|
Employees benefits expense |
5316.000 |
5538.200 |
6505.200 |
|
|
Excise Duty |
16455.100 |
19969.000 |
0.000 |
|
|
Captive Sales for own projects |
(6010.700 |
(10738.200) |
(7090.200) |
|
|
Exceptional Items |
0.000 |
0.000 |
8077.700 |
|
|
Other expenses |
55683.900 |
51664.800 |
52241.300 |
|
|
TOTAL |
126354.200 |
122522.600 |
104759.300 |
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) BEFORE INTEREST TAX
DEPRECIATION AND AMORTISATION |
28670.700 |
24645.500 |
32108.600 |
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES |
22804.000 |
26464.800 |
20647.100 |
|
|
|
|
|
|
|
|
PROFIT
/ (LOSS) BEFORE TAX DEPRECIATION AND AMORTISATION |
5866.700 |
(1819.300) |
11461.500 |
|
|
|
|
|
|
|
Less/
Add |
DEPRECIATION/
AMORTISATION |
20436.500 |
21481.400 |
17855.600 |
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) BEFORE TAX |
(14569.800) |
(23300.700) |
(6394.100) |
|
|
|
|
|
|
|
Less |
TAX |
(4705.300) |
(9115.400) |
(3287.300) |
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) AFTER TAX |
(9864.500) |
(14185.300) |
(3106.800) |
|
|
|
|
|
|
|
|
EARNINGS
IN FOREIGN CURRENCY |
|
|
|
|
|
F.O.B. Value of Exports |
23396.800 |
6587.300 |
16617.500 |
|
|
Others |
0.000 |
1.100 |
17.200 |
|
|
TOTAL
EARNINGS |
23396.800 |
6588.400 |
16634.700 |
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
Raw Material & Fuel |
19186.000 |
19129.800 |
20297.900 |
|
|
Components and Stores parts |
903.400 |
1779.000 |
2432.700 |
|
|
Capital Goods |
2473.300 |
6151.900 |
2144.000 |
|
|
TOTAL
IMPORTS |
22562.700 |
27060.700 |
24874.600 |
|
|
|
|
|
|
|
|
Earnings
/ (Loss) Per Share (INR) |
(10.78) |
(15.50) |
(3.40) |
CURRENT MATURITIES OF LONG TERM DEBT DETAILS
|
Particulars |
31.03.2017 |
31.03.2016 |
31.03.2015 |
|
Current Maturities of Long term debt |
11627.500 |
18268.300 |
21981.700 |
|
Cash generated from operations |
NA |
NA |
16847.700 |
|
Net cash flow from operating activity |
40638.900 |
44215.100 |
14483.100 |
QUARTERLY RESULTS
|
Particulars |
30.06.2017 |
30.09.2017 |
31.12.2017 |
|
Audited / Unaudited |
Unaudited |
Unaudited |
Unaudited |
|
|
1ST Quarter |
2nd Quarter |
3rd Quarter |
|
Net Sales |
40992.300 |
37836.60 |
43843.200 |
|
Total Expenditure |
33497.100 |
29999.40 |
34632.600 |
|
PBIDT (Excl OI) |
7495.200 |
7837.20 |
9210.600 |
|
Other Income |
NA |
NA |
NA |
|
Operating Profit |
7495.200 |
7837.20 |
9210.600 |
|
Interest |
5323.000 |
5782.80 |
5942.000 |
|
Exceptional Items |
NA |
(1497.200) |
NA |
|
PBDT |
2172.200 |
557.20 |
3268.600 |
|
Depreciation |
4806.300 |
4957.60 |
4650.200 |
|
Profit Before Tax |
(2634.100) |
(4400.400) |
(1381.600) |
|
Tax |
(856.800) |
(1848.100) |
(644.200) |
|
Provisions and contingencies |
NA |
NA |
NA |
|
Profit After Tax |
(1777.300) |
(2552.300) |
(737.400) |
|
Extraordinary Items |
NA |
NA |
NA |
|
Prior Period Expenses |
NA |
NA |
NA |
|
Other Adjustments |
NA |
NA |
NA |
|
Net Profit |
(1777.300) |
(2552.300) |
9737.400) |
KEY
RATIOS
EFFICIENCY RATIOS
|
PARTICULARS |
31.03.2017 |
31.03.2016 |
31.03.2015 |
|
Average Collection Days (Sundry Debtors / Income * 365 Days) |
18.78 |
20.64 |
36.02 |
|
|
|
|
|
|
Account Receivables Turnover (Income / Sundry
Debtors) |
19.44 |
17.68 |
10.13 |
|
|
|
|
|
|
Average Payment Days (Sundry Creditors
/ Purchases * 365 Days) |
168.93 |
133.83 |
113.12 |
|
|
|
|
|
|
Inventory Turnover (Operating Income
/ Inventories) |
1.52 |
1.01 |
0.86 |
|
|
|
|
|
|
Asset Turnover (Operating Income
/ Net Fixed Assets) |
0.06 |
0.05 |
0.10 |
LEVERAGE RATIOS
|
PARTICULARS |
31.03.2017 |
31.03.2016 |
31.03.2015 |
|
Debt Ratio ((Borrowing + Current Liabilities) / Total
Assets) |
0.53 |
0.57 |
0.73 |
|
|
|
|
|
|
Debt Equity Ratio (Total Liability
/ Networth) |
1.16 |
1.12 |
2.26 |
|
|
|
|
|
|
Current Liabilities to Networth (Current
Liabilities / Net Worth) |
0.66 |
0.71 |
1.06 |
|
|
|
|
|
|
Fixed Assets to Networth (Net Fixed Assets
/ Networth) |
2.25 |
2.11 |
2.46 |
|
|
|
|
|
|
Interest Coverage Ratio (PBIT / Financial
Charges) |
1.26 |
0.93 |
1.56 |
PROFITABILITY RATIOS
|
PARTICULARS |
|
31.03.2017 |
31.03.2016 |
31.03.2015 |
|
Net Profit Margin ((PAT / Sales) *
100) |
% |
(6.37) |
(9.65) |
(2.32) |
|
|
|
|
|
|
|
Return on Total Assets ((PAT / Total
Assets) * 100) |
% |
(1.64) |
(2.34) |
(0.67) |
|
|
|
|
|
|
|
Return on Investment (ROI) ((PAT / Networth)
* 100) |
% |
(4.53) |
(6.15) |
(2.48) |
SOLVENCY RATIOS
|
PARTICULARS |
31.03.2017 |
31.03.2016 |
31.03.2015 |
|
Current Ratio (Current Assets / Current Liabilities) |
0.61 |
0.58 |
0.88 |
|
|
|
|
|
|
Quick Ratio ((Current Assets
– Inventories) / Current Liabilities) |
0.48 |
0.43 |
0.60 |
|
|
|
|
|
|
G-Score Ratio Financial (Networth / Total
Assets) |
0.36 |
0.38 |
0.27 |
|
|
|
|
|
|
G-Score Ratio Debt (Debts / Equity
Capital) |
276.79 |
281.36 |
309.47 |
|
|
|
|
|
|
G-Score Ratio Liquidity (Total Current
Assets / Total Current Liabilities) |
0.61 |
0.58 |
0.88 |
Total Liability = Short-term Debt + Long-term
Debt + Current Maturities of Long-term debts
STOCK PRICES
|
Face Value |
INR 1.00/- |
|
Market Value |
INR 221.70/- |
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 |
914.900 |
914.900 |
915.000 |
|
Reserves & Surplus |
124197.200 |
229741.800 |
216747.000 |
|
Share Application money pending allotment |
0.000 |
0.000 |
0.000 |
|
Net
worth |
125112.100 |
230656.700 |
217662.000 |
|
|
|
|
|
|
Long Term borrowings |
185074.200 |
164115.700 |
164038.800 |
|
Short Term borrowings |
76076.300 |
75034.700 |
77594.600 |
|
Current Maturities of Long term debt |
21981.700 |
18268.300 |
11627.500 |
|
Total
borrowings |
283132.200 |
257418.700 |
253260.900 |
|
Debt/Equity
ratio |
2.263 |
1.116 |
1.164 |
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
|
133903.500 |
146933.400 |
154936.100 |
|
|
|
9.731 |
5.446 |
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
|
133903.500 |
146933.400 |
154936.100 |
|
Profit |
(3106.800) |
(14185.300) |
(9864.500) |
|
|
(2.32%) |
(9.65%) |
(6.37%) |
ABRIDGED
BALANCE SHEET – (CONSOLIDATED)
|
SOURCES
OF FUNDS |
|
31.03.2017 |
31.03.2016 |
|
|
|
|
|
|
I.
EQUITY AND LIABILITIES |
|
|
|
|
(1)Shareholders' Funds |
|
|
|
|
(a) Share Capital |
|
915.000 |
914.900 |
|
(b) Reserves & Surplus |
|
299590.300 |
323446.100 |
|
(c) Money received against
share warrants |
|
0.000 |
0.000 |
|
|
|
|
|
|
(2) Share Application money
pending allotment |
|
0.000 |
0.000 |
|
(3) Non controlling interest |
|
6467.100 |
8998.300 |
|
Total
Shareholders’ Funds (1) + (2) |
|
306972.400 |
333359.300 |
|
|
|
|
|
|
(3) Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
|
325983.400 |
363539.000 |
|
(b) Deferred tax liabilities (Net) |
|
53586.300 |
58723.700 |
|
(c) Other long term
liabilities |
|
6734.800 |
937.000 |
|
(d) long-term provisions |
|
3072.100 |
1957.300 |
|
Total
Non-current Liabilities (3) |
|
389376.600 |
425157.000 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a) Short term borrowings |
|
73601.000 |
77779.500 |
|
(b) Trade payables |
|
30287.000 |
23177.400 |
|
(c) Other current liabilities |
|
105118.000 |
63862.700 |
|
(d) Short-term provisions |
|
624.300 |
648.000 |
|
Total
Current Liabilities (4) |
|
209630.300 |
165467.600 |
|
|
|
|
|
|
TOTAL |
|
905979.300 |
923983.900 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i) Tangible assets |
|
621895.200 |
612122.200 |
|
(ii) Intangible Assets |
|
37102.200 |
38258.800 |
|
(iii) Capital work-in-progress |
|
87139.800 |
107027.000 |
|
(iv) Intangible assets under
development |
|
10021.900 |
11241.000 |
|
(b) Non-current Investments |
|
3995.500 |
3917.700 |
|
(c) Deferred tax assets (net) |
|
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
|
912.500 |
9503.800 |
|
(e) Other Non-current assets |
|
15203.700 |
13926.400 |
|
Total
Non-Current Assets |
|
776270.800 |
795996.900 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a) Current investments |
|
3.800 |
0.300 |
|
(b) Inventories |
|
35992.600 |
32541.000 |
|
(c) Trade receivables |
|
17166.200 |
14291.800 |
|
(d) Cash and cash equivalents |
|
5140.300 |
6872.800 |
|
(e) Short-term loans and
advances |
|
3874.300 |
2115.200 |
|
(f) Other current assets |
|
67531.300 |
72165.900 |
|
Total
Current Assets |
|
129708.500 |
127987.000 |
|
|
|
|
|
|
TOTAL |
|
905979.300 |
923983.900 |
PROFIT
& LOSS ACCOUNT– (CONSOLIDATED)
|
|
PARTICULARS |
|
31.03.2017 |
31.03.2016 |
|
|
SALES |
|
|
|
|
|
Income |
|
226962.400 |
203681.300 |
|
|
Other Income |
|
99.900 |
1566.900 |
|
|
TOTAL
|
|
227062.300 |
205248.200 |
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
Cost of Materials Consumed |
|
65354.600 |
60762.700 |
|
|
Purchases of Stock-in-Trade |
|
2653.900 |
205.800 |
|
|
Changes in inventories of
finished goods work-in-progress and Stock-in-Trade |
|
2826.200 |
4481.900 |
|
|
Employees benefits expense |
|
9135.500 |
9465.700 |
|
|
Excise Duty |
|
16457.300 |
19969.000 |
|
|
Captive Sales for own projects |
|
(6049.900) |
(10975.100) |
|
|
Exceptional items |
|
3723.000 |
2358.300 |
|
|
Other expenses |
|
90004.500 |
85402.600 |
|
|
TOTAL |
|
184105.100 |
171670.900 |
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) BEFORE INTEREST TAX
DEPRECIATION AND AMORTISATION |
|
42957.200 |
33577.300 |
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES |
|
33895.900 |
32535.600 |
|
|
|
|
|
|
|
|
PROFIT
/ (LOSS) BEFORE TAX DEPRECIATION AND AMORTISATION |
|
9061.300 |
1041.700 |
|
|
|
|
|
|
|
Less/
Add |
DEPRECIATION/
AMORTISATION |
|
39490.200 |
40678.800 |
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) BEFORE TAX |
|
(30428.900) |
(39637.100) |
|
|
|
|
|
|
|
Less |
TAX |
|
(5026.700) |
(8774.600) |
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) AFTER TAX |
|
(25402.200) |
(30862.500) |
|
|
|
|
|
|
|
|
Share in Profit / (Loss) of associates (Net of tax) |
|
(27.000) |
10.000 |
|
|
|
|
|
|
|
|
Total
Profit/(Loss) |
|
(25375.200) |
(30872.500) |
|
|
|
|
|
|
|
|
Other
Comprehensive income(OCI) |
|
|
|
|
|
(i) Items that will not be reclassified to profit or Loss |
|
|
|
|
|
Remeasurement of the defined benefit plans |
|
40.100 |
359.900 |
|
|
(ii) Income Tax relating to Items that will not be reclasiffied
to profit or loss |
|
13.900 |
124.600 |
|
|
(iii) Items that will be reclassified to profit or Loss |
|
|
|
|
|
Foreign Currency translation reserve (FCTR) |
|
(1275.200) |
(7678.100) |
|
|
(iv) Income Tax relating to Items that will be reclassified
to profit or loss |
|
0.000 |
0.000 |
|
|
|
|
|
|
|
|
Total
comprehensive income |
|
(26624.200) |
(38315.400) |
|
|
|
|
|
|
|
|
Net
Profit attributable to: |
|
|
|
|
|
a) Owners of the equity |
|
(22812.800) |
(29662.400) |
|
|
b) Non- Controlling interest |
|
(2562.400) |
(1210.200) |
|
|
Other
Comprehensive Income attributable to: |
|
|
|
|
|
a) Owners of the equity |
|
(1276.000) |
(6991.600) |
|
|
b) Non- Controlling interest |
|
27.000 |
(451.200) |
|
|
Total
Comprehensive Income attributable to: |
|
|
|
|
|
a) Owners of the equity |
|
(24088.700) |
(36654.000) |
|
|
b) Non- Controlling interest |
|
(2535.500) |
(1661.400) |
|
|
|
|
|
|
|
|
Earnings
/ (Loss) Per Share (INR) |
|
(27.73) |
(33.74) |
LEGAL CASE
|
High Court of
Orissa |
|
Case Status
Information System |
Case
Status :
Pending
Status of : Petitions under Indian Arbitration Act. 30 of 2014
Litigation : ECI ENGINEERING Vs. JINDAL STEEL AND POWER
Pet’s Adv : M/A.
CHANDRAFAKANTA NANDA
Res’s Adv : M/S. SUDARSHAN NANDA
Bench : HON”BLE MR. JUSTICE S.C. PARIJA
--
--
Last
Date of Hearing : Thursday March 10 2016
Next/Final
Date of Hearing: Thursday March 17 2016
Case
Updated on: Wednesday March 16 2016
Category
: ARBITRATION MATTER
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 |
OVERVIEW
Subject
is one of the India’s leading steel producers with significant presence in
sectors like mining and power generation. It is listed on the National Stock
Exchange of India and Bombay Stock Exchange in India. Its business is spread
across India and overseas. The registered office is situated in the state of
Haryana the corporate office is situated in New Delhi and the manufacturing
plants in India are in the states of Chhattisgarh Odisha Jharkhand etc. The
Company has global presence through subsidiaries mainly in Australia Botswana
Cameroon China Dubai Indonesia Liberia Mauritania Mauritius Mozambique
Madagascar Namibia South Africa Sultanate of Oman Tanzania and Zambia. There
are several business initiatives running simultaneously across continents.
BASIS OF PREPARATION
OF FINANCIAL
STATEMENTS
The
Company has adopted Indian Accounting Standards (the Ind AS) prescribed under
section 133 of the Companies Act 2013 (the Act) read with the Companies (Indian
Accounting Standards) Rules 2015 and the Companies (Indian Accounting Standards)
(Amendment) Rules 2016 with effect from 1st April 2016 with 1st April 2015 as
the date of transition. Accordingly the financial statements have been prepared
in accordance with the said Ind AS and Rules and other recognized accounting
practices and policies to the extent applicable.
For all
periods up to and including the year ended 31st March 2016 the Company had
prepared its financial statements in accordance with accounting standards as
prescribed under Section 133 of the Companies Act 2013 (the Act) read with Rule
7 of the Companies (Accounts) Rules 2014 (referred to as Indian GAAP). The
Company has consistently applied the accounting policies used in the
preparation of its opening Ind AS Balance Sheet at April 1 2015 throughout all
periods presented as if these policies had always been in effect and are
covered by Ind AS 101 (First-time adoption of Indian Accounting Standards). The
transition was carried out from accounting principles generally accepted in
India (Indian GAAP) which is considered as the previous GAAP as defined in Ind
AS 101. The reconciliation of effects of the transition from Indian GAAP on the
equity as at April 1 2015 and March 31 2016 and on the net profit and material
adjustments to cash flows for the year ended March 31 2016 is disclosed in Note
no 66 to these financial statements.
The
standalone financial statements provide comparative information in respect of
previous year. In addition the company presents balance sheet as at the
beginning of previous year which is the transition date to Ind AS.
The
significant accounting policies used in preparing the financial statements are
set out in Note no 3 of the Notes to the Standalone Financial Statements.
The
preparation of the financial statements in conformity with Indian Accounting
Standards (Ind AS) requires management to make judgments estimates and
assumptions that affect the reported amounts of revenues expenses assets and
liabilities and the accompanying disclosures at the date of the financial
statements. The judgments estimates and underlying assumptions are reviewed on
an ongoing basis. Revisions to accounting estimates are recognised in the
period in which the estimate is revised if the revision effects only that
period or in the period of the revision and future periods if the revision
affects both current and future years and if material their effects are
disclosed in the notes to the financial statements. Actual results could vary
from these estimates.
INDIAN ACCOUNTING
STANDARDS
Ministry
of Corporate Affairs (MCA) has vide its notification dated February 16 2015
notified the applicability of Indian Accounting Standards (“Ind AS”) to be applicable
on listed companies and certain class of companies for the Accounting period
beginning from April 1 2016 with comparatives to be provided for the period
ended on March 31 2016.
The
Company has adopted Indian Accounting Standard (Ind AS) with effect from April
1 2016 and accordingly these financial results along with the comparatives have
been prepared in accordance with the recognition and measurement principles
stated therein prescribed under Section 133 of the Companies Act 2013 read with
the relevant rules issued thereunder.
OPERATIONAL
HIGHLIGHTS
The
Company has always aspired to enhance its participation in the socio- economic
development of the nation and will continue to dream bigger with continuously
working towards building a nation of their dreams. In May 2017 the Company
dedicates to the nation 6 MTPA Integrated Steel Plant at Angul Odisha.
Sale of
Steel Product in the domestic market was 2.841 Million MT as compared to 3.059 Million
MT in the previous year showing a decrease of 7% and total export was 5.09
Lakhs MT as compared to 0.235 Million MT in the previous year showing an
increase of 117%.
The
Company completed all major iron and steel making installations at the 6 MTPA
Integrated Steel Plant at Angul Odisha.
It comprises :
- India’s largest 4
MTPA Sinter Plant 4554 cum Blast Furnace and 0.9 MTPA Coke Oven.
- World’s first 1.8
MTPA Direct Reduced Iron (DRI) Plant based on Coal Gasification Process (CGP).
- World’ largest
225000 Nm3/ HR Coal Gasification Plant for Steel making.
- Steel
Melting Shop (SMS) with 250 T EAF.
- A 1.4
MTPA Bar Mill.
- India’s most
advanced 1.2 MTPA Plate Mill capable of producing plates upto 5 Meter width.
- World’s fastest
2.3 MTPA Billet Castor (capacity speed 3.6 Meters/ Minute).
- A 810
MW Captive Power Plant.
- Air
Separation Unit (2x1200 TPD)
- Lime
Dolomite Plant (2x500 TPD)
- Coal
Washery (6 MTPA) and
-
Process Boilers (3x1800 TPH)
The
completion of the 4554 cum Blast Furnace was done at a significantly lower
capital investment as compared to projects of similar scale. The capacity
addition would further enhance the cost efficiencies of steel making. The
economies of scale imparted by the capacity additions and their optimum
utilization would effectuate Company’s debt reduction roadmap.
PRODUCTION HIGHLIGHTS
Steel: Production of finished Steel
products during the year was 2.971 Million MT as against 2.948 Million MT in
the previous year whereas production of semi steel products was 3.475 Million MT
as against 3.465 Million MT in the previous year.
Power: During the year 5465 million Kwh
of Power was generated as against 5882 million Kwh of power in the previous
year.
Sponge Iron: Production of Sponge Iron during
the year was 1.766 Million MT as against previous year’s production
of 1.994 Million MT.
Pellet: 6.463 Million MT of Pellets were
produced during the year as against 4.589 Million MT in the previous year.
Machinery: Machinery division in Raipur unit
produced 998 MT of castings and has done production of 11317 MT as against 1931
MT and 13966 MT respectively in the previous year.
Mining: The Mining of sized ore and fines
at Tensa in Odisha was 0.596 Million Ton and 2.127 Million Ton respectively as
against previous year mining of 0.622 Million Ton and 2.301 Million Ton
respectively.
MANAGEMENT DISCUSSION AND ANALYSIS
Economic Growth
Global economic
outlook
World
economic growth is projected to rise from 3.1% in 2016 to 3.5% in 2017 and 3.6%
in 2018 with buoyant financial markets and a long-awaited cyclical recovery in
manufacturing and trade under way. But binding structural impediments continue
to hold back a stronger recovery and the balance of risks remains tilted to the
downside especially over the medium term.
United States of
America:
The US economy grew once firms had more clarity about the future demand and
inventories started contributing positively to growth. It is expected to grow
consistently due to a resilient household consumption and a surge in capital
outlays supported by upbeat business sentiment. The onus of growth lies in the
potential policy shifts in the country which will drive the strength of the US
dollar as well.
United Kingdom: Despite Brexit the United
Kingdom showed signs of growth due to an unaffected spend in the country.
However unemployment is a huge challenge which the country continues to face.
The manufacturing sector continued to expand at a reduced rate as British firms
were impacted due to the lower exchange rate on exports.
Euro zone: Germany and Spain grew as a
result of strong domestic demand. A robust domestic demand has aided recovery
in the second half of 2016. An improving labour market high confidence levels
and moderating monetary policy are acting as tailwinds for the domestic
economies. However rising inflation remains a concern for customer spending.
Emerging market and
Developing Economies (EMDEs): There was an uneven growth
across emerging market and developing economies. China’s growth was stronger
due to a continued policy support whereas India was slightly impacted due to
the demonetisation drive. Brazil was impacted due to a recession and various
geopolitical factors affected the Middle East and Turkey. The EMDEs are
projected to grow by 4.5% in 2017.
Indian economy
The
Indian economy grew at a GDP of 7.1% in FY 2016-17 despite a humble global
growth. Foreign direct investments (FDIs) continued to pour in despite global
uncertainties. India witnessed a reduction in inflation and interest rates
fiscal stability and an uneven but decent monsoon. The Government rolled out
several bold reforms to enable the country reach its true potential and a
balance inflation and an improvement in both its current and fiscal deficits.
- Fiscal Deficit of India: In 2016-17 India’s
debt-to-GDP ratio for the
- Central Government was 49.4% and fiscal deficit at 3.5% of
GDP
- Current Account Deficit (as % of GDP): 0.9% in FY 2016-17
(expected)
- Inflation Rate: CPI inflation has fallen to
3.0% in April 2017 from 3.81% in March 2017
- Repo rate: RBI keeps Repo Rate
unchanged at 6.25% in the last monetary policy review in April 2017
Demonetisation
The
Government of India announced demonetisation of high value currency in Q3 of FY
2016-17 to curb corruption circulation of fake currency and black money.
Besides the process strove to increase flow of financial savings into the
banking system. It had a short-term impact on the economy’s growth. Retail
trade was somewhat affected in the months of November and December. Demand
started to ease from January onwards. In the longer run demonetisation is
expected to have a positive impact on the GDP growth with greater tax obedience
digitalisation and formal channelling of the savings system.
Goods and Services
Tax (GST)
The
announcement of a Goods and Service Tax (GST) also had a positive impact on the
Indian economy. The policy has been rolled out on 1st July 2017 with a view to
reinforce the indirect taxation system increase transparency and consolidation
of disintegrated Indian market.
Make in India
Manufacturing
sector is the core driver of economic growth for any country and the Government
has shown strong intent to make India a global manufacturing hub through the ‘Make in
India’
initiative launched in 2014. The initiative aims to build best-in-class
manufacturing infrastructure by enabling investments boosting innovation
encouraging skill development and strengthening intellectual property
protection. India is expected to become the fifth largest manufacturing country
in the world by the end of year 2020.
Wholesale Price Index
(WPI)
The
Indian wholesale price index rose 5.6% year-on-year in March 2017 following a
6.55% gain in February and below market estimates of a 5.98% rise. There was a
slowdown in manufactured products which offset a faster increase in the cost of
food and petrol. However the WPI dropped to 3.85% in April 2017.
CPI inflation
The
average CPI inflation rate in India for FY2016-17 was the lowest at 3.8% since
2012. It was mainly driven by a slowdown in food prices. The controlled
inflation rates contributed to a 6% reverse repo rate in April 2017.
Industrial Production
The
industrial production of India increased by 2.7% year-on-year in March 2017.
The output for manufacturing production grew at a 1.2% compared to 1.4% in
February 2017. The industrial output expanded by 5% in FY 2016-17.
The Indian
crude oil consumption increased to 196.5 million tons in FY 2016-17 as compared
to 177.5 million tons in FY 2015-16. The increase was driven by a rising income
which encouraged people to buy more passenger cars scooters and three-wheelers.
The road transportation sector is also growing rapidly with focus on
constructing roads and highways.
OUTLOOK
The
Indian economy holds a bright future led by an increased domestic consumption
and greater digitalisation. The implementation of Goods and Service Tax (GST)
is likely to spur the GDP to a 7.4% in FY 2017-18. Also Government initiatives
such as Digital India Skill India and Make in India are leading the country to
a digitalised platform and empowering domestic manufacturing.
STEEL INDUSTRY
Global steel industry
The
global crude steel production increased 0.8% in CY16 visà- vis the previous
year to reach 1628.5 million tonnes (MT). While crude steel production declined
in Europe the Americas and Africa it picked up pace in the Commonwealth of Independent
States (CIS) the Middle East Asia and Oceania. China India Turkey and Ukraine
were the top four countries that witnessed growth in steel production in CY
2016.
In CY
2016 global steel production was dictated by uncertainties arising out of
geo-political tensions Brexit and
skeptism
over monetary policies and structural reforms in developed economies.
OUTLOOK
Going
forward the global steel demand growth for CY 2017 is expected to rise by 0.5%.
Weakness in global investment continues to hold back a stronger steel demand
recovery. However a better than expected forecast for China and continued
growth in emerging economies will help the global steel industry move on a
positive trajectory.
DEVELOPED ECONOMIES
The
steel demand in developed economies increased by 0.2% in 2016 and is expected
to increase by 1.1% in 2017.
Demand
for steel manufactured in the US has declined owing to a strong dollar which
negatively impacts the manufacturing sector. Besides there has been a decline
in shale related investments. In Japan demand for steel remained subdued due to
structural issues; and appreciation of the Yen post Brexit had a negative
impact on it. However Government stimulus implementation of delayed projects
and works on Tokyo Olympic facilities encouraged domestic demand for steel in
Japan.
Despite
Brexit demand for steel improved in EU due to a resilient consumption and mild
recovery in construction sector. Demand for steel in the UK for 2016 and 2017
is expected to tone down due to the referendum; however long-term effects of
Brexit cannot be predicted at the moment. Additionally the refugee crisis poses
serious challenges for EU but immediate impact on steel demand appears to be
minimal.
Emerging Economies
The
emerging and developing economies (except China) were the primary growth
drivers for world steel demand. During 2016 these economies overcame various
challenges like geopolitical factors internal national political tensions and
others while showing strong signs of growth compared to the developed nations.
Among the emerging economies Asia steered the growth drive of steel.
Going
forward the overall global steel demand is expected to maintain a modest growth
momentum in 2017.
Indian steel industry
India’s crude
steel production in FY 2016-17 grew by 8.5% year-on-year to 97.400 million
tonnes. While India’s steel sector witnessed an intense internal competition due to
increased production the industry had to withstand cheaper steel imports. The
Government undertook various initiatives like imposing the ‘Minimum
Import Price’ (MIP) in Feb 2016 on some steel and iron products to curtail
unfair steel imports.
Moreover
the Government levied anti-dumping duties on steel products such as hot rolled
sheets and plates among others in FY 2016-17. This was an important step
towards safeguarding the industry from excessive steel imports and bolstering
the domestic steel production. Despite all trade measures India imported 8
million tonnes of steel by the end of FY17.
India’s
steel consumption increased by 2.6% year-on-year in FY17. It was expected to
pick up pace in the second half of FY 2016-17 owing to several Government
measures and reforms. A decent monsoon and the Seventh Pay Commission were
expected to drive India’s consumer spend on whitegoods and realty sector
thereby creating an upswing in the steel industry. However
demonetisation-induced liquidity crunch led to reduced demand in both market
segments. Thus the steel industry did not grow as predicted.
Going
forward India’s steel industry has immense long-term potential for growth
despite the challenges. Both private and public-sector steel manufacturers are
taking adequate measures to achieve sustainable long-term growth.
India
became the highest net exporter of steel during FY 2016-17 with an increase of
102% year-on-year (YoY) after a gap of three years. Besides there was a 2.6%
increase in the demand for the real consumption and the crude steel production
increased by 8.5% vis-à-vis 0.9% in FY 2015-16.
Government
Initiatives
The
Government of India initiated several steps to protect the steel industry from
the external threats of dumping and uniform trade. Following were the measures
taken:
Bureau of Indian
Standards (BIS) Norms
Compulsory
BIS norms were laid down for the steel industry and production of steel. The
norms were also applied to overseas firms which are licensed steel exporters to
India. This reform was thoughtfully imposed to maintain consistency and improve
the quality of steel to compete with international standards.
Annulling
Classification
The
Government removed classification of steelmakers in their projects to avoid any
discrimination arising due to classification. Further it served to provide
equal opportunity for all steel manufacturers.
Anti-dumping Measures
India imposed
strict anti-dumping duties on China the United States and other countries to
protect the interests of domestic steel producers. A ‘Minimum
Import Price’ (MIP) was imposed on certain steel imports which was a key
factor in reducing low-priced steel imports to India.
The
Safeguard duty is another measure by the Government that will eventually
replace the MIP.
Railway Freight
Reforms
The
Government of India has withdrawn the differential railway freight policy for
domestic consumption and exports of iron ore and pellets. This reform will help
to bolster iron ore exports.
Domestic Finished
Steel price trend
Domestic
prices for both hot rolled coil and plate increased between 15% and 19% since
April 2016. They reached peak price in January 2017. However there has been a
downward trend in the last few months. Additionally price of long steel reached
its apex in March and April 2017 thereafter facing a downward trend. Further
prices of TMT and wire rod have increased upto 9% since April 2016.
OUTLOOK
According
to the World Steel Association India is expected to contribute 5.1 million
tonnes of the 20 million tonnes global steel demand during CY 2017. India’s Government
has been guarding the country’s steel industry with agile
policy making creating opportunities for steel producers to grow. Moreover the
Union Budget 2017 has created a more conducive environment for the steel
industry to flourish. As per the CRISIL report India’s steel
industry is slated to grow between 6% and 6.5% CAGR in the short and medium
term. The Make in India campaign along with the Government deliver the
necessary impetus to the industry.
RAW MATERIAL SCENARIO
Iron ore
The
international prices for pellet were at their peak at US$93.65/MT and iron ore
was at its highest at US$117/MT in February 2017. However both witnessed a
sharp decline in the prices since then due to the plummeting demand from Chinese
steel producers.
Coking coal
The
international Hard Coking Coal prices rose by $64/MT (FOB Australia) in FY
2016-17.
OPERATIONAL REVIEW
JSPL
produces one of the widest variety of flat products and a whole range of long
products. The Company produces the world’s longest single piece Rail of
121 metre length and is a pioneer in manufacturing large-size parallel flange
beams in India.
UNSECURED LOAN
|
Unsecured Loan |
31.03.2017 (INR
in Million) |
31.03.2016 (INR
in Million) |
|
Long-term
Borrowings |
|
|
|
Debentures : |
|
|
|
3000
(Previous Year 3000) 9.63% Unsecured Redeemable Non Convertible Debentures of
INR 1000000 each |
0.000 |
3000.000 |
|
(Privately placed initially with HDFC Bank Limited) |
|
|
|
3000
(Previous Year 3000) 10.48% Unsecured Redeemable Non Convertible Debentures
of INR 1000000 each |
3000.000 |
3000.000 |
|
(Privately placed initially with ICICI Bank Limited) |
|
|
|
10000
(Previous Year 10000) 10.25% Unsecured Redeemable Non Convertible Debentures
of INR 1000000 each (Privately placed initially with Kotak Mahindra Bank) |
10000.000 |
10000.000 |
|
7500
(Previous Year 7500) 9.75% Unsecured Redeemable Non Convertible Debentures of
INR 1000000 each |
7500.000 |
7500.000 |
|
(Privately placed initially with HDFC Bank Limited) |
|
|
|
- Other Loans from Banks (Buyer’s Credit) |
0.000 |
629.400 |
|
- External Commercial Borrowings |
2014.600 |
2895.700 |
|
Less current maturities presented |
(1580.000) |
(4239.300) |
|
|
|
|
|
Short-term borrowings |
|
|
|
Term Loans From Banks |
14669.000 |
15930.100 |
|
Other Loans from Banks (Buyer’s Credit) |
0.000 |
206.000 |
|
Loans from related parties |
17424.400 |
19082.700 |
|
Total |
53028.000 |
58004.600 |
|
Note: Long-term
Borrowings Debentures 1.
Debentures of INR NIL
(Previous Year INR 3000.000
Million) placed initially with HDFC Bank Limited on private placement basis are
redeemable at par at the end of 3 years from the date of allotment i.e.
05.04.2013. 2.
Debentures of INR 3000.000 Million (Previous Year INR 3000.000 Million) placed initially
with ICICI Bank Limited on private placement basis are redeemable at par at
the end of 5 years from the date of allotment i.e. 11.08.2014. 3.
Debentures of INR 10000.000 Million (INR 10000.000 Million) placed initially
with Kotak Mahindra Bank on private placement basis are redeemable at par in
3 instalments INR 3300.000 Million at the end of 4 years INR 3300.000 Million
at the end of 5 years and INR 3400.000 Million at the end of 6 years from the
date of allotment i.e. 18th December 2014. 4.
Debentures of INR 7500.000 Million (Previous Year INR 7500.000 Million)
placed initially with HDFC Bank Limited on private placement basis are
redeemable at par at the end of 6 years from the date of allotment i.e.
11.03.2015. External Commercial
Borrowings 1. ECA
from Credit Agricole CIB of INR 15.100 Million (Previous Year INR 49.200 Million) at year end
rate repayable in 14 half yearly instalments starting from October 21 2010. 2. ECA
from Credit Agricole CIB of INR 232.800 Million (Previous Year INR 505.000 Million) at year end
rate repayable in 16 half yearly instalments starting from May 25 2010. 3. ECA
from Credit Agricole CIB of INR 695.300 Million (Previous Year INR 848.300 Million) at year end
rate repayable in 20 half yearly instalments starting from March 9 2011. 4. ECA
from Credit Agricole CIB of INR NIL (Previous Year INR 37.700 Million) at year end rate repayable in 14 half yearly
instalments starting from June 21 2010. 5. ECB
from ICICI Bank Limited of INR 1071.400 Million (Previous Year INR 1455.600 Million) at year end
rate repayable in 15 half yearly instalments starting from March 11 2011. |
||
INDEX OF CHARGES:
|
SNo |
SRN |
Charge Id |
Charge Holder Name |
Date of Creation |
Date of
Modification |
Date of
Satisfaction |
Amount |
Address |
|
1 |
G46562294 |
100104634 |
SBICAP TRUSTEE COMPANY LIMITED |
25/05/2017 |
- |
- |
84000000000.0 |
711 7th Floor Ashoka Estate 24Barakhamba RoadNew DelhiDL110001IN |
|
2 |
G29420858 |
100065241 |
AXIS TRUSTEE SERVICES LIMITED |
30/11/2016 |
- |
- |
15750000000.0 |
AXIS HOUSE BOMBAY DYEING MILLSCOMPOUND PANDHURANG BUDHKAR MARG WORLIMUMBAIMa400025IN |
|
3 |
G03553690 |
10623746 |
Bank of Baroda |
03/03/2016 |
03/05/2016 |
- |
1229100000.0 |
1st Floor Bank of Baroda Building16 Sansad MargNew DelhiDL110001IN |
|
4 |
C64907967 |
10565016 |
SBICAP TRUSTEE COMPANY LIMITED |
30/03/2015 |
08/09/2015 |
- |
40000000000.0 |
202 MAKER CHAMBER E CUFEE PARADECOLABAMUMBAIMH400005IN |
|
5 |
C42667832 |
10547420 |
ICICI BANK LIMITED |
06/02/2015 |
- |
- |
5000000000.0 |
LANDMARKRACE COURCE CIRCLEALKAPURIBARODAGJ390015IN |
|
6 |
C41229204 |
10544612 |
State Bank of India |
31/12/2014 |
- |
- |
6000000000.0 |
CAG Branch Jawahar Vyapar Bhawan11th and 12th Floor 1 Tolstoy MargNew DelhiDL110001IN |
|
7 |
C40476665 |
10543093 |
HDFC BANK LIMITED |
29/12/2014 |
- |
- |
5000000000.0 |
HDFC Bank House Vatika Atrium A-Wing 2nd FloorGolf Course Road Sector-53GurgaonHR122002IN |
|
8 |
C38982104 |
10540233 |
Axis Bank Limited |
29/12/2014 |
- |
- |
5000000000.0 |
13TH FLOOR STATESMAN HOUSE148 BARAKHAMBA ROADNEW DELHIDL110001IN |
|
9 |
C06004147 |
10501763 |
State Bank of India |
06/05/2014 |
- |
- |
15000000000.0 |
STATE BANK OF INDIA CAG BRANCH12TH FLOOR JAWAHAR VYAPAR BHAWAN 1 TOLSTOY MARGNEW DELHIDL110001IN |
|
10 |
C53736716 |
10487119 |
HDFC BANK LIMITED |
26/03/2014 |
27/04/2015 |
- |
10000000000.0 |
HDFC BANK HOUSE SENAPATI BAPAT MARGLOWER PAREL WMUMBAIMH400013IN |
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 |
|
|
|
(Unaudited) |
(Unaudited) |
(Unaudited) |
|
1. |
Income from operations |
|
|
|
|
|
a)
Net Sales/Income from Operations |
43266.800 |
37211.800 |
121123.000 |
|
|
b)
Other Operating Income |
576.400 |
624.800 |
1549.100 |
|
|
Less:
Captive Sales for own projects |
(1122.000) |
(1158.900) |
(4952.800) |
|
|
Total revenue from Operations |
42721.200 |
36677.700 |
117714.300 |
|
|
Other
income |
-- |
-- |
-- |
|
|
Total Income |
42721.200 |
36677.700 |
117714.300 |
|
|
|
|
|
|
|
2. |
Expenses |
|
|
|
|
|
a)
Cost of materials consumed |
16837.300 |
15031.500 |
46358.100 |
|
|
b)
Purchase of traded goods |
269.400 |
578.400 |
1555.500 |
|
|
c)
Changes in inventories of finished goods work-in-progress and traded goods |
143.300 |
(179.100) |
(1649.100) |
|
|
d)
Employee benefits expense |
1300.000 |
1372.700 |
4011.200 |
|
|
e)
Finance Cost |
5942.000 |
5782.800 |
17047.700 |
|
|
f)
Depreciation and amortisation expense |
4550.200 |
4957.600 |
14414.100 |
|
|
g)
Excise Duty |
-- |
-- |
4578.700 |
|
|
h)
Other expenses |
16082.600 |
13195.900 |
43274.700 |
|
|
i)
Cost of Captive sales |
(1122.000) |
(1158.900) |
(4957.800) |
|
|
Total Expenses |
44102.800 |
39580.900 |
124633.100 |
|
|
|
|
|
|
|
3. |
Profit/ (Loss) before exceptional items and tax |
(1381.600) |
(2903.200) |
(6918.800) |
|
4. |
Exceptional
Items |
-- |
1497.200 |
1497.200 |
|
5. |
Profit/ (Loss) before tax |
(1381.600) |
(4400.400) |
(8416.000) |
|
6. |
Tax
expenses |
|
|
|
|
|
Current
tax |
-- |
-- |
-- |
|
|
Deferred
tax |
(644.200) |
(1848.100) |
(3349.100) |
|
7. |
Net Profit/ (Loss) after tax |
(737.400) |
(2552.300) |
(5066.900) |
|
8. |
Share of Profit/
(Loss) of associates (net of tax) |
-- |
-- |
-- |
|
9. |
Total Profit/ (Loss) |
(737.400) |
(2552.300) |
(5066.900) |
|
10. |
Other Comprehensive Income (OCI) |
|
|
|
|
|
i)
Items that will not be reclassified to profit or loss |
10.300 |
10.300 |
30.900 |
|
|
Income
tax relating to items that will not be reclassified to profit or loss |
3.600 |
3.600 |
10.800 |
|
|
ii)
Items that will be reclassified to profit or loss |
|
|
|
|
11. |
Total Comprehensive Income |
(730.700) |
(2545.600) |
(5046.800) |
|
12. |
Net profit
attributable to: |
|
|
|
|
|
a)
Owners of the equity |
--- |
--- |
--- |
|
|
b)
Non-controlling Interest |
--- |
--- |
--- |
|
13. |
Other Comprehensive
Income attributable to: |
|
|
|
|
|
c)
Owners of the equity |
--- |
--- |
--- |
|
|
d)
Non-controlling Interest |
--- |
--- |
--- |
|
14. |
Total
Comprehensive Income attributable to: |
|
|
|
|
|
e)
Owners of the equity |
--- |
--- |
--- |
|
|
f)
Non-controlling Interest |
--- |
--- |
--- |
|
15. |
Earnings before Interest Taxes and
Depreciation (EBITDA) |
9210.600 |
7837.200 |
24543.000 |
|
16. |
Earnings
BEFORE Interest Taxes and Depreciation (EBITDA) (%) |
22% |
21% |
21% |
|
17. |
Paid up Equity Share
Capital (Face value of INR 1 per share) |
916.400 |
915.00 |
916.400 |
|
18. |
Other Equity |
|
|
|
|
18. |
Earnings Per Share (EPS) (for the Quarter not annualised) |
|
|
|
|
|
a)
Basic |
(0.81) |
(2.79) |
(5.54) |
|
|
b)
Diluted |
(0.81) |
(2.79) |
(5.54) |
Note:
1. The unaudited financial results for the quarter/nine months ended 31st December 2017 have been reviewed by the Company's Statutory auditors. These have been reviewed by the Audit Committee and taken on record by the Board of Directors at their meetings held on 25th January, 2018.
2. The Hon’ble Supreme Court of India by its Order dated 24 September, 2014
cancelled number of Coal blocks allocated to the Company by Ministry of Coal,
Government of India and directed to pay an additional levy of INR 295 per Mt on
gross coal extracted. The Company had paid under protect such levy on coal
extracted during the period from 1993 to 31st March 2015 of INR 20822.300
Million (INR 32674.300 Million incline a subsidiary). The management based on
legal opinion had charged to the Statement of profit and loss as exceptional
item, during the year 2014-15 INR 8077.700 Million (INR 19116.400 Million including
a subsidiary) Computed on net extraction ( run of mines less shale, rejects and
upgraded medding) of coal by the Company. The balance amount of INR 12744.600
Million (INR 13557.900) Million including a sub diary has been shown as
recoverable from the Government Authority Since the entire amount of additional
ley has been paid under protect.
3. The Company has net block value of investment made in mining assets
including land, infrastructure and clearance etc. of INR 4250.000 Million ( INR
6085.800 Million including a subsidiary) and filed claim for the same pursuant
to directive vide letter dated 26 December, 2014 given by the Ministry of Coal
on such mines. Meanwhile the Ministry of Coal has made interim payment to the
Company of INR 227.200 Million towards the same.
4. Higher finance cost due to borrowing for payment of additional coal levy of
INR 33000.000 Million ( approve) and higher fuel cost, consequent to
cancellation of coal blocks by Hon'ble Supreme Court of India continued to
contribute to loss in financial results.
5. Hon'ble Supreme Court of India leviee compensation on lessess of mines of
iron, Ore and manganese in the State of Odisha for excess production ( above
environmental and /or forest clearances) Accordingly the Company has deposited
INR 1378.200 Million in December 2017, against the demand notice issued by the
Department of Mines, Odisha, post separate hearing before Hon'ble Supreme
Court. The Company did not agree to excess quantity as assessed by the State
Government and Central Empowered Committee and filed review petition, pending
disposal of the same and based on the opinion of an export, the Company
believes that it has a credible case in the its favour . Therefore amount paid
is shown as recoverable.
6. During the quarter the Company has issued 14,20,000 equity shares of INR 1
each at issue price of INR 140.31 each (including premium of INR 139.31 per
share) and 4,80,00,000 convertible warrants at issue price of INR 140.31 each
to the promoter group companies warrants are convertible into equal number of
fully paid equity shares of INR1 each.
7. Effective 1st July, 2017 sales are recorded net of GST whereas earlier sales
were recorded gross of excise duty which formed part of expenses. Hence revenue
from operation for quarter/nine months ended 31st December, 2017 are net
comparable with previous period corresponding figures.
8. Figures period figures have been regrouped/reclassified /recasted to make
them comparable.
CONTINGENT
LIABILITIES:
(INR in million)
|
PARTICULARS |
31.03.2017 |
31.03.2016 |
|
Guarantees
Undertakings and Letter of Credit |
|
|
|
Guarantees issued by the Company’s Bankers on behalf of the Company |
9154.200 |
6991.800 |
|
Letter of credit opened by banks |
6262.900 |
8545.700 |
|
Corporate guarantees/undertakings issued on behalf of third parties |
52179.800 |
51920.100 |
|
Demand: |
|
|
|
Disputed Statutory and Other demands |
14299.800 |
14769.300 |
|
Income
Tax demands where the cases are pending at various stages of appeal with the authorities |
16658.000 |
14753.600 |
|
Bonds
executed for machinery imports under EPCG Scheme |
18307.400 |
28488.900 |
|
Note: It is
not possible to predict the outcome of the pending litigations with accuracy
the Company believes based on legal opinions received that it has meritorious
defences to the claims. The management believe the pending actions will not
require outflow of resources embodying economic benefits and will not have a
material adverse effect upon the results of the operations cash flows or
financial condition of the Company. |
||
FIXED ASSETS
Tangible assets
· Freehold Land
· Leasehold land
· Buildings
· Plant and Equipments
· Electrical Fittings
· Furniture and Fixtures
· Vehicles
· Aircraft
· Office Equipment
Intangible assets
· Licenses
· Design and Drawings
· Computer software
PRESS RELEASE
PARADISE PAPERS:
ARGENTINA FIRM ROPED IN APPLEBY ON $2-MN DUES FROM JINDAL
The arbitration was
for payment due to Ultrapetrol for the work it did as a contractor engaged by
JSPLM for its business in Bolivia.
As on November 9 2017
In March 2015 Ultrapetrol SA registered in Argentina approached Appleby for advice on enforcing a London arbitral award against JSPLM Limited
APPLEBY DOCUMENTS show that Ultrapetrol SA a service provider to Jindal Steel and Power Limited (JSPL) in Bolivia obtained an arbitral award in London in 2015 against Jindal Steel and Power Limited Mauritius (JSPLM) a 100 per cent subsidiary of JSPL related to dues of approximately $2 million.
In March 2015 Ultrapetrol SA registered in Argentina approached Appleby for advice on enforcing a London arbitral award against JSPLM Limited. Documents show the arbitration was for payment due to Ultrapetrol for the work it did as a contractor engaged by JSPLM for its business in Bolivia.
Ultrapetrol had asked Appleby on the avenues available to enforce of the arbitral award against the assets of Jindal outside Mauritius. It further asked for the procedures that needed to be followed for winding up of Jindal in the event the arbitral award remains unsatisfied.
Appleby suggested that since Mauritius is a signatory to the Convention on the Recognition and Enforcement of Foreign Arbitral Awards (New York Convention) a ruling by a foreign tribunal against a local company may be recognised and enforced by the Supreme Court of Mauritius.
It further said that while the court may exercise its discretion to turn down the enforcement of an arbitral award at the request of the party against whom it is invoked. But it pointed out the UK is a party to the New York Convention and that an arbitral award obtained in London was capable of being recognised and enforced in courts there.
However Appleby noted the winding-up procedures of a Mauritian company were governed under the Insolvency Act 2009. Therefore a liquidator appointed pursuant to the Act will not be able to take control of assets of Jindal outside the jurisdiction of Mauritius Appleby said.
Later in 2015 a report by Minter Ellison a legal and consulting firm based in Australia said that a Federal Court of Australia where Jindal has business interests has ordered that the foreign arbitral award against JSPLM be enforced and that “the non-appearance formed the basis for an order by default”.
RESPONSE
Jindal Steel and Power responds: The matter pertains to JSPL’s Bolivia project where Ultra Petrol SA was engaged as a contractor for regular course of operations. In 2012 the company had to withdraw from Bolivia project. All matters between subsidiaries of JSPL and Ultra Petrol SA stand amicably resolved and settled.
COAL SCAM: ED TO FILE
PROSECUTION COMPLAINT AGAINST JINDAL STEEL AND POWER
The Enforcement
Directorate in its status report also told the Supreme Court it has lodged
seven more cases in the coal block allocation scam
October 20 2017
The Enforcement Directorate (ED) has told the Supreme Court that it had lodged seven more cases in the coal block allocation scam and was in the process of filing prosecution complaints against two firms including Naveen Jindal-owned Jindal Steel and Power Limited.
In its tenth status report filed in the apex court for the period from January 2016 to September 30 this year ED said it had earlier received 55 FIRs from the CBI and registered enforcement case information report (ECIR) in all of them. “Subsequent to the ninth status report the Directorate of Enforcement has received seven more FIRs from the CBI and it has registered ECIR in respect of these seven cases” the agency told a bench headed by Justice M B Lokur.
The agency told the bench which also comprised Justices Kurian Joseph and A K Sikri that provisional attachment orders have been issued in 11 cases. “There has been a slight increase in the number of provisional attachment orders from the earlier status report” the court noted in its order adding “Prosecution complaint has been filed in two cases (AMR Iron and Steel Private Limited and Nav Bharat Power Private Limited). Filing of prosecution complaints are in process in respect of Jindal Steel and Power Limited and Grace Industries Limited” the order said.
Naveen Jindal was granted bail in September by a special court in a case related to the allocation of a coal block in Madhya Pradesh. ED also told the top court Kamal Sponge Steel and Power Limited was being investigated. The apex court has asked ED to file the next status report before December 4 while asking the agency and the CBI to expedite their probe in the coal scam cases.
The apex court had on January 23 constituted a special investigation team (SIT) to probe the allegations of “abuse of authority” prima facie committed by former CBI Director Ranjit Sinha to scuttle investigation and enquiries in the coal block allocation cases. It had later directed that no CBI officer who is probing coal scam cases or officials from SIT probing allegations of “abuse of authority” against the former CBI director would be transferred without its prior permission.
HDFC BANK WORLD’S
MOST RICHLY VALUED LENDER HAS AN UNHAPPY SECRET
As on December 04
2017
HDFC Bank must
acknowledge the divergence between its self-reported and RBI-assessed NPAs
Bad things don’t happen to good banks. Or that’s the carefully crafted image projected by the world’s priciest lender.
Assiduously shielding its loan book from the flying debris of India’s $207 billion bad-debt crisis HDFC Bank Limited has kept its balance sheet in a near-pristine condition. The aura of invincibility bestowed by a 1.26% soured-loan ratio—compared with almost 10% for State Bank of India and 25% for IDBI Bank Limited — also explains why HDFC Bank has a price-to-book multiple of 5.2. Among lenders with at least $50 billion in market value anywhere none is as expensive.
So it was a surprise last month when HDFC Bank reported a hefty provision against an unnamed corporate account that it said wasn’t a non-performing asset then one day later marked the loan down to NPA because the Reserve Bank of India (RBI) the regulator had told it to do so.
The matter would have rested there were it not for an independent banking analyst Hemindra Hazari. In a note on Smartkarma a research website Hazari reproduced last week a letter from the bank to Jindal Steel and Power Ltd allowing it to sell and lease back its oxygen plant provided the proceeds were “utilized towards clearing overdues to make our account absolutely regular.”
This opens a Pandora’s Box. Jindal Steel had net debt of INR 440000.000 Million ($6.8 billion) at the end of September. Was the steel company indeed the unidentified shaky account? If so was HDFC Bank on the hook to that borrower for more than 15% of its reported non-performing assets on 31 March the end of its financial year? Hazari believes so.
In that case the correct thing to do would be for HDFC Bank to acknowledge the “divergence” between its self-reported and RBI-assessed NPAs. But doing so would also mean admitting that those soured loans net of provisions were 95% more than disclosed in the full-year accounts.
Its halo would thus slip and the charge of being less than truthful that I’ve levelled at other non-state Indian lenders—Axis Bank Limited ICICI Bank Limited and Yes Bank Limited —would apply equally to HDFC Bank.
Questions might also arise about the RBI. Axis Bank chief executive officer Shikha Sharma told the Economic Times that she was compelled by the central bank to reclassify standard borrowers as NPAs and did so because “we are obedient children.” Jindal Steel has been named by local media as one of those accounts. The RBI can’t arbitrarily force some lenders to appear less than truthful while sparing others the humiliation of a mea culpa.
The fairness of the RBI’s assessment is one thing its correctness is another. For now India’s bloated steelmakers are enjoying an uptick in domestic demand and operating profitability. But they aren’t out of the woods.
Suppose sometime after March next year Jindal Steel struggled to pay rentals on its expensive sale-and-leaseback deal with Srei Equipment Finance Limited and the latter dragged it to the insolvency tribunal. By then the firm would have been an NPA for a year and India recently prohibited borrowers with non-performing loans overdue a year or longer—or parties connected to such debtors—from bidding for assets in bankruptcy.
Not only would Naveen Jindal chairman of Jindal Steel stand to forfeit the firm; even his brother Sajjan Jindal’s JSW Energy Limited which is already bailing out the sibling’s company by buying one of its power plants would be unable to help him win it back because it’s a connected party.
With the stakes this high the RBI needs to crack the whip of asset classification with a steady hand—one that treats creditors fairly and borrowers correctly. Meanwhile HDFC Bank must present a more accurate picture of its soured loans. After all bad things can happen even to great banks.
COAL SCAM: CBI
PRESSES FOR BRIBERY CHARGE AGAINST JINDAL OTHERS
JANUARY 10 2018
The case pertains to
the allocation of the Amarkonda Murgadangal coal block in Jharkhand.
The CBI on Wednesday told a special court that the charge of bribery be also framed against Congress leader and industrialist Naveen Jindal and others in a case pertaining to irregularities in the allocation of a Jharkhand coal block.
The agency made the submission before special judge Bharat Parashar who granted the last opportunity to accused Jindal and others to file their written submissions by February 16 before the pronouncement of its order on framing of charges in the case.
The case pertains to the allocation of the Amarkonda Murgadangal coal block in Jharkhand.
“The charges for offer and acceptance of bribe to the public servant described and punishable under section 7 and 12 of Prevention of Corruption Act should be framed” senior public prosecutor V K Sharma appearing for CBI said.
The court had in April 2016 ordered framing of charges against Jindal former MoS for Coal Dasari Narayan Rao (since deceased) former Jharkhand Chief Minister Madhu Koda former Coal Secretary H C Gupta and 11 others for the alleged offences of criminal conspiracy cheating criminal breach of trust under the IPC and sections of Prevention of Corruption Act in the case. However the bribery charge was not framed then.
An additional charge sheet was later filed against Jindal Steel’s adviser Anand Goel Gurgaon-based Green Infra’s vice-president Siddharth Madra Nihar Stocks Limited Director BSN Suryanarayan Mumbai-based KE International’s Chief Financial Officer Rajeev Aggarwal and Mumbai’s Essar Power Limited Executive Vice-Chairman Sushil Kumar Maroo.
During today’s proceedings the court which was hearing arguments on framing of charges based on the second charge sheet asked the accused named in the initial charge sheet whether they wanted to advance arguments on the point of charge.
CBI had alleged that Koda had favoured Jindal group firms — Jindal Steel and Power Limited (JSPL) and Gagan Sponge Iron Private Limited (GSIPL) — in allocation of Amarkonda Murgadangal block.
It had alleged that five accused named in the second charge sheet tried to hamper the investigation and threatened Suresh Singhal a chartered accountant who was earlier arrayed as an accused but later turned approver.
All the accused have denied the allegations levelled against them and said there was no evidence to show that there was any conspiracy during the coal block allocation process.
The CBI recently filed another charge sheet against Jindal and others including Goel and Maroo for allegedly cheating the government by misrepresenting facts to get the Madhya Pradesh based Urtan North coal block.
CMT REPORT (Corruption Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts
1] INFORMATION ON
DESIGNATED PARTY
No 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 65.07 |
|
|
1 |
INR 89.85 |
|
Euro |
1 |
INR 80.16 |
INFORMATION DETAILS
|
Analysis Done by
: |
PRY |
|
|
|
|
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)
This report is issued at
your request without any risk and responsibility on the part of MIRA INFORM
PRIVATE LIMITED (MIPL) or its officials.