Balance Sheet Project - FINAL007

8/3/2019 Balance Sheet Project - FINAL007

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GROUP MEMBERS

NAMES ROLL NO.

KUNAL BHAROCHA 6

ANKIT DEDHIA 15

VANDITA DOSHI 20

CHETAN GHULE 27

RITIKA JAGGI 33

NEHA JAIN 35

SHWETA KOLE 47

HAFSA MOOSA 60



ACKNOWLEDGEMENT

We would like to thank Mr. Navin Rohatgi for providing us with this

opportunity, to study the insights of how a Small Scale Industry is to be setup.

We would also like to thank the following people for their guidance and co-operation and to provide us with all the possible information and support.

With this project we have been able to realize that starting up of anybusiness is not an easy task. We got to know the different formalities onehas to fulfill, face fierce competition and have to look into minute details

before taking any decision.

We are certainly more grateful, to all those who have directly or indirectlyhelped us in our project.



TABLE OF CONTENTS

NO. PARTICULARS PAGENO.1 ABOUT THE COMPANY

2 NAME OF THE SUBSIDIARIES AND ITSLOCATION

3 SHARE HOLDING PATTERN

4 ANALYSES OF CONSOLIDATED BALANCESHEET

5 ANALYSES OF CONSOLIDATED PROFIT ANDLOSS ACCOUNT

6 IMPORTANT RATIOS

7 AUDITOR’S REPORT

8 DIRECTOR’S REPORT

9 CORPORATE GOVERNANCE

10 MANAGEMENT DISCUSSION

11 VICE CHAIRMAIN’s SPEECH

12 NAME OF DIRECTORS’AND AUDITORS’OF THECOMPANY

13 NAMES OF COMMITTEES OF THE COMPANY

14 FUTURE STRATEGIES

15 CONCLUSION

16 BIBLIOGRAPHY



ABOUT THE COMPANY:

Grit of steel. Value of gold. India’s third largest steelmaker, JSW Steel Ltdis today a fully integrated steel plant having units across Karnataka and

Maharashtra producing from pellets to colour coated steel. JSW Steel Ltdis a company driven by the demands of its customers and it cares to meettheir needs. A nation-wide marketing network and consignment agentsensure availability of JSW Steel Ltd products in every nook and corner of the country. JSW STEEL LTD. is also the only company to receive all threecertificates:

ISO:9001 for quality management system

ISO:14001 for environment management system

OHSAS:18001 for occupational health and safety management system

HISTORY:

JSW's history can be traced back to 1982, when the Jindal Group acquiredPiramal Steel Ltd which operated a mini steel mill at Tarapur inMaharashtra. The Jindals, who had wide experience in the steel industry,renamed it as Jindal Iron and Steel Co Ltd (JISCO) now known as JSWSteel Limited (Downstream)

In 1994, to achieve the vision of moving up the value chain and building astrong, resilient company, JISCO promoted Jindal Vijayanagar Steel Ltd(JVSL) now known as JSW Steel Limited (Upstream) .Its plant is located atToranagallu in the Bellary-Hospet area of Karnataka, the heart of the high-grade iron ore belt, and spread over 3,700 acres of land. It is just 340 kmsfrom Bangalore, and well connected to Goa and Chennai ports.

The steel industry then was on the threshold of adopting new technology,and the Jindal Group took a lead in adopting the latest technology of steelmaking, known as 'COREX,' developed by Voest Alpine of Austria. The thenJVSL was the first Greenfield project to have 'COREX' as a mainstream

facility.



THE SUBSIDIARIES:

$ 2 billion Jindal Organisation has expanded and diversified into corebusiness areas ensuring synergy amongst its various business ventures,spreading over 13 plants at 10 pivotal locations in India and two plants inUSA.

The Jindal team embodies one of the most coveted talent pools of technological acumen available in the country today. With experience thathas enabled the Organisation to put up large scale projects in record time.

GROUP COMPANIES:

JINDAL STAINLESS STEEL LIMITED:

India's largest integrated manufacturer of Stainless Steel catering to about 40% of Indiandemand.

• Plant Location - Hisar, Harayana

• Capacity - 500,000 tpa

• High Carbon Ferro Chrome plant at Vishakhapatnam, Andhra Pradesh

JINDAL IRON AND STEEL COMPANY LIMITED:

India's largest integrated galvanising facilities in India accounting for 17% of totalgalvanising production in the country. It is engaged in hot Rolling, cold Rolling andgalvanising business. Export of 75% of production to over 45 countries.

• Plant Locations - Vasind and Tarapur, Maharashtra • Capacity - GP/GC 710,000 tpa, HR 280,000 tpa, CR 750,000 tpa

SAW PIPES LIMITED:

Manufacturer of large diameter U-O-E submerged arc welded pipes. Also has protectivecoating application facilities viz. Polyethylene, Polypropylene, Fusion Bond Epoxy, CoalTar enamel / Bitumen and Concrete coating.

• Plant Location - Kosikalan, Uttar Pradesh, Gujarat


• Manufactures Seamless pipes at Nashik. • Swastik Foils, a division of SPL manufactures cold rolled steel coils in thin and

ultra thin gauges.

http://www.jindalstainless.com/

http://www.jisco.com/

http://www.sawpipes.com/

http://www.jisco.com/

http://www.sawpipes.com/

http://www.jindalstainless.com/



JINDAL VIJAYANAGAR STEEL LIMITED:

An environment friendly integrated steel plant manufacturing HR coils using therevolutionary Corex technology for iron making. Supplies HR coils to group companyJISCO for value addition and to South India. Only HR coil manufacturer in South India. Tieup with world steel leaders gives unique advantage in manufacturing and technology.

• Plant Location - Toranagallu, Karnataka • Capacity - 1.6 million tpa

JINDAL STEEL AND POWER LIMITED:

Asia's largest and world's second largest coal based sponge iron plant.

• Plant Location - Raigarh, Madhya Pradesh


• 95 MW Power plant also at Raigarh. Iron ore mining in Orissa and coal mining inMadhya Pradesh ensure quality raw material at a lower cost.

SAW PIPES USA INC.:

Manufacture large diameter DSAW pipes using the U-O-E process.

• Location - Bay Town, Texas, USA

• Capacity - 500,000 tonnes

JINDAL UNITED STEEL CORPORATION:

Manufacture steel plates for use in large diameter pipes, construction and fabricationindustries.

• Plant Location - Bay Town, Texas, USA

• Capacity - 1.2 million tpa

VIJAYANAGAR MINERALS PRIVATE LIMITED: It is a joint venture with State Government, Karnataka for mining of iron ore.

• Plant Location - 20 km from JVSL plant• Capacity - 3 million tpa

http://www.jvsl.com/

http://www.jindalsteelpower.com/

http://www.jindalusa.com/

http://www.jvsl.com/

http://www.jindalsteelpower.com/

http://www.jindalusa.com/



JOINT VENTURES:

JINDAL THERMAL POWER COMPANY LIMITED:

A Company to produce power from both coal and Corex off gas of JVSL steel plant.

• Plant Location - Toranagallu, Karnataka

• Capacity - 2 x 130 MW

JINDAL PRAXAIR OXYGEN COMPANY LIMITED:

It has entered into joint venture with Praxair Inc. World's largest air separation plant. ItSupplies necessary oxygen for JVSL plant for both iron and steel making.

• Location - Toranagallu, Karnataka

• Capacity - 2 x 2500 tpd

http://www.jtpcl.com/

http://www.jtpcl.com/



SHARE HOLDING PATTERN:

THE DISTRIBUTION OF SHAREHOLDING AS ON 31st MARCH, 2007

NO.

NO.OFEQUITYSHARES

NO.OFSHAREHOLDERS

% OFSHAREHOLDERS

NO. OFSHARES

HELD% OF

SHAREHOLDIN

1 0 - 5000 558730 99.3 12097551 7.38

2 5001 - 10000 2138 0.38 1524479 0.93

3 10001 - 20000 865 0.15 1206873 0.74

4 20001 - 30000 283 0.05 691799 0.42

5 30001 - 40000 116 0.02 409511 0.25

6 40001 - 50000 87 0.02 402639 0.25

7 50001 - 100000 143 0.03 980005 0.6

8 > 100001 274 0.05 146665956 89.43

TOTAL 562636 100% 163978813 100%



CATEGORIES OF SHAREHOLDERSAS ON 31st MARCH, 2007

CATEGORY NO. OF HOLDERS NO. OF SHARES % OF HOLDING

PROMOTER 114 76300727 46.53

NRI 13009 2759865 1.68

FII 80 30722456 18.74

OCB 8 41674 0.03

FBC 2 8218685 5.01

IFI 9 7085958 4.32

IMF 75 10640908 6.49

BANKS 21 326845 0.2

EMPLOYEES 2835 72860 0.04

BODIES CORPORATE 2847 11442408 6.98

PUBLIC 543622 16013432 9.77

TRUST 14 352995 0.22

TOTAL 562636 163978813 100%



ANALYSES OF CONSOLIDATED BALANCE SHEET:

If we see the Balance sheet of the company, particularly Debt Equity Ratio,we could find that it is 0.74 : 1

i.e.: 4173.03 = 0.74 : 15658.82

It means company is giving more importance to the debt fund, which isresulting in more interest payment at the time of liquidation. It would havemore obligations to pay-off. Entire surplus and reserves will be wiped out.Therefore shareholder will have very little amount in their hand. If we seethe current ratio of the company, it is 1.08 : 1.

i.e.: 2485.81 = 1.08 : 12287.31

It means current assets are slightly higher than the current liabilities and inthat also 50% of the current assets are formed by the inventory, whichadverses the liquid ratio. It indicates that the company will not be able tomeet its short term obligations. It could not be able to finance its day to daytransaction because of shortage of cash balance which is hardly 14% of thetotal current assets. Companies 50% of the current assets is blocked up ininventory.

Which may be due to inability of the company to sell its stock

Low demand for companies product

Slow moving items

Dead stock etc



ANALYSES OF CONSOLIDATED PROFIT AND LOSSACCOUNT:

If we see the Profit & Loss A/c we could see that almost 42% of the total

turnover of the company is through exports.

i.e.: 3593.64 * 1008594.44

= 0.41813 * 100

= 41.81%

Under the expenditure materials, manufacturing and other expenses are

the major expenditure forming almost 83% of total expenditure.

i.e.: 5601.12 * 1006784.45

= 0.82558 * 100

= 82.55%

Company is appropriate in profit towards transferred from Debenture

Redemption Reserve. It is paying dividend on Preference Shares, Interimdividend on Equity Shares, Corporate Dividend Tax and transfer to GeneralReserve. It’s earning per share is 8 times it’s face value.



IMPORTANT RATIOS:

RETURN ON CAPITAL EMPLOYEED :

EBIT / CAPITAL EMPLOYEED * 100

Current Year 2007:

1915.18 + 374.68 * 10010779.74

= 21.24%

Previous Year 2006:

1301.89 + 339.01 * 1009194.3

= 17.85%

EARNING PER SHARE :

Current Year 2007:

• Basic = 80.11

• Diluted = 78.88

Previous Year 2006:

• Basic = 55.57

• Diluted = 55.57



DEBT EQUITY RATIO :

DEBT / EQUITY

Current Year 2007:

4173.035594.05

= 0.75 : 1

Previous Year 2006:

4096.054356.22

= 0.94 : 1

RETURN OF PROPRITORS FUNDS :

NET PROFIT AFTER TAX * 100PROPRITORS FUNDS /SHAREHOLDERS FUNDS

Current Year 2007:

1292 * 1005594.05

= 23.1%

Previous Year 2006:

856.53 * 1004356.22

= 19.66%



AUDITOR’S REPORT

They have audited the attached consolidated Balance Sheet of JSWSTEEL LTD and its subsidiaries as at March 31, 2007, the

consolidated Profit and Loss Account for the year ended on that dateannexed thereto and the consolidated Cash Flow Statement for theyear ended on that date, which they have signed under reference tothis report. These consolidated financial statements are theresponsibility of the Company’s management. JSW STEEL LTDresponsibility is to express an opinion on these consolidatedfinancial statements based on audit.

They conducted their audit in accordance with auditing standardsgenerally accepted in India. Those Standards require that they plan

and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are prepared, in all materialrespects, in accordance with an identified financial reportingframework and are free of material misstatement. An audit includesexamining, on a test basis, evidence supporting the amounts anddisclosures in the consolidated financial statements. An audit alsoincludes assessing the accounting principles used and significantestimates made by management, as well as evaluating the overallconsolidated financial statement presentation. They believe that their audit provides a reasonable basis for their opinion.

They report that the consolidated financial statements have beenprepared by the Company in accordance with the requirements of Accounting Standard 21 Consolidated Financial Statements issuedby the Institute of Chartered Accountants of India and on the basis of separate audit of financial statements of JSW STEEL LTD and itssubsidiaries included in the consolidated financial statements.



On the basis of the information and explanations given to them, andon consideration of the separate audit reports of individual auditedfinancial statements of JSW STEEL LTD and its aforesaidsubsidiaries, in their opinion, consolidated financial statements givea true and fair view in conformity with the accounting principles

generally accepted in India:

in the case of the consolidated Balance Sheet, of the consolidatedstate of affairs of JSW STEEL LTD and its subsidiaries as at March31, 2007;

in the case of the consolidated Profit and Loss Account, of theconsolidated results of operations of JSW STEEL LTD and itssubsidiaries for the year ended on that date;

in the case of the consolidated Cash Flow Statement, of the

consolidated cash flows of JSW STEEL LTD and its subsidiaries for the year ended on that date.

For Deloitte Haskins & SellsChartered accountants

P.B.PardiwallaPartner Membership no. 40005

Place: MumbaiDate: April 30, 2007



DIRECTOR’S REPORT

The directors' report is an annual communication to the shareholdersabout the financial results, business operations and future outlook of thecompany. This report is prepared and circulated among the shareholders

along with the financial statements before the annual general meeting. Thefollowing are the details about the company’s director’s report.

1. FINANCIAL RESULT:

(a) The company has seen a growth in total revenue as well as in the netprofit earned in the current year as compared to the previous year.The net profit has increase from 12.59% to 13.83%. Therefore theincrease in net profit margin is 1.24%.

(b) In the financial year, there has been increase in capacity of crudesteel, hot strip mill and pellet plant production.

(c) The company has also showed a production growth of 18%.

2. DIVIDEND:

(a) On 13- 3- 2007 the directors declared an interim dividend of Rs 12.50per equity share of Rs 10.00.

(b) With Corporate tax on dividend, the total outflow was Rs 233.73crore, that is, increase of 63% as compared to previous financialyear.

(c) The dividend pay out comes to be 18.09%.(Calculation: 233.73/1292.00*100).

3. PROJECTS AND EXPANSION PLANS:

(a) 1 MTPA Cold Rolling Mill complex to be in operation from thefinancial year 07-08.

(b) Also, the Phase II of Modernization of Hot Strip Mill that will increasethe capacity from 2.5 to 3.2 MTPA and blast Furnace I to increase thecapacity from 0.9 to 1.2 MTPA to be ready till 07-09.

(c) Other such projects are under way and improvements in product mixare taking place.

(d) Steel consumption in previous year grew at 12% and total steelconsumption is expected to reach 70 MT by 2011.

(e) Hot Strip Mill with initial capacity of 2 MTPA can be increased to 5MTPA. The cost of this project is estimated to be Rs 7000 crore.



4. OTHER DEVELOPMENTS:

(a) A Memorandum of Understanding (MOU) is signed with the stategovernment of Jharkhand for setting up a 10 MTPA green field steelplant with an initial investment of Rs 35000 crore.

(b) A Development Agreement has been signed with the Government of West Bengal on 11th January, 2007 for setting up 10 MTPA steel plantwhich cost Rs 35000 crore. This plant will be named JSW BengalSteel Ltd.

(c) As a part of Clean Development Mechanism (CDM) project, a 100 MWcaptive power plant is planned to be set up for using waste gases. Ithas been registered by the CDM Executive board on 12 th January,2007. The Certified Emission Reductions (CER) will be issued after examination by the CDM Executive board.

5. PROSPECTS:

(a) The global finished steel consumption is expected to touch 1.178 bntones in 2007 with the growth of 5.8%.

(b) The world economy is expected to grow at 3.7% in 07 and therefore,2007 is expected to be a good year for steel industry.

6. FORMATION OF SUBSIDIARIES:

(a) A wholly owned subsidiary overseas by the name of JSW NaturalResource Limited to pursue acquiring coal assets or other assetsrelating to steel industry.

(b) A wholly owned subsidiary company in London (UK) by the name of JSW Steel (UK) Limited to strengthen and widen the company’spresence in the international market to identify and speed up theacquisition in steel related business.

(c) A wholly owned subsidiary company in India by the name of JSWSteel Processing Centers Limited to set up service centers to meetthe demand of user industry.



7. ASSOCIATED COMPANIES FOR POWER, OXYGEN ANDMINING:

(a) JSW Energy (Vijaynagar) Limited (JEVL) is setting up a 600 MWpower plant adjacent to steel plant of the company in the state of

Karnataka. A long term Power Purchase Agreement has being signedby the company.

(b) As per last Audited Financial Statement for the year ended 31st

march, 2006 of Jindal Praxair Oxygen Company Private Limited(JPOCL), the reported turnover and net profit after tax were Rs296.48 crores and Rs 54.00 crores respectively.

(c) During the financial year 2006-07, Vijaynagar Minerals private Limited(VMPL) has supplied 1.20 mt of iron ore which is 10% higher thanearlier years. VMPL has secured an approval for 2.5 MTPA for production from the Government of Karnataka.

8. CREDIT RATING:

Credit Analysis & Research Ltd. (CARE) has assigned a rating of “CAREAA- (Double A minus)” to the secured Non- Convertible debentures.

9. FIXED DEPOSITS:

The company has not accepted any Fixed Deposit s from the public.

10. SHARE CAPITAL:

(a) 500000 equity share of Rs 10 each to Mr. Sajjan Jindal and 6500000equity shares of Rs. 10 each to JSW Investments Private Limitedwere allotted at Rs 272 per share.

(b) During the year under review the company’s paid up equity sharehas increased from Rs 1,56,97,55,170 to Rs 1,63,97,88,130.

11. DIRECTORS:

(a) Two directors have retired as per the rotation and are now eligible frotheir reappointment. Their proposals are placed for approval.

(b) Also, Mr. Sajjan Jindal has been reappointed by the Directors as theChairman and Managing Director for the period of 5 years.



12. AUDITORS:

M/s Deloitte Haskins & Sells, Chartered Accountants, has retired andhas expressed their willingness of being the Auditor of the company.

13. PARTICULARS REGARDING CONSERVATION OF ENERGY ANDTECHNOLOGY ABSORPTION:

(a) The company has taken many steps so as to conserve naturalresources and other form of energy.

(b) Replacement of few machines and improvements in the existingmachinery is included in their current and future prospects.

14. PARTICULARS OF EMPLOYEES:

All the information regarding the designation, remuneration, experienceetc of the employees along with their name has been provided.

15. AWARDS AND RECOGNITION:

(a) The company has received various awards and recognition fromdifferent organizations.

(b) The awards include that of National Sustainability Award and CII

Award for Business Excellence among others.

16. CORPORATE GOVERNANCE:

The company has complied with the requirements of clause 49 of thelisting agreement regarding Corporate Governance.

17. DIRECTOR’S RESPONSIBILITY STATEMENT:

(a) The directors of the company are responsible and trustworthy andhave followed the required accounting standards along with theexplanation.

(b) They have provided to the shareholders with the fair informationregarding the state of affair of the company.



CORPORATE GOVERNANCE

JSW steel ltd has complied with the requirements of clause 49 of the listingagreement with stock exchange regarding its corporate governance.

1. Company’s philosophy

The board members consisting of experts make sure that the laws andrules regulations are strictly followed. They believe not merely ondrafting a code of corporate governance but also in practicing it.

2. Board of Directors :

I. Composition: The board of directors consists of 12 Directors out of which 9 are non executive including the chairman. There are 6independent directors which are in compliance with the stipulated1/3rd. None of the directors is a member on more than 10 committeesand chairman of more than 5 committees.

II. Meetings and attendance: 5 meetings of the board were held duringthe year 31st march 2007 and a proper record of their attendance ismaintained.

3. Audit Committee :

I. The audit committee met 4 times during the year. This meetingconsisted of 2 independent directors and 1 non independent director

having complete knowledge of accounts audit and finance.II. Terms for the audit committee:

• To review the financial statements before submission to theboard.

• To review reports of management auditors and internal auditdepartments.

• To review the weakness in internal control

4. Remuneration Committee :

I. It is not mandatory as per the clause 49. it was formed on 23/3/02. For

the year 31/3/07 remuneration committee met once.II. Functions:

• The main function of remuneration committee is to determinethe specific remuneration to be paid to the executive directorson behalf of the board and shareholders.

• Remuneration is paid on the basis of appraisal system and theremuneration policy followed by the companies of similar sizeand industry standards.



• Present remuneration structure of executive directorscomprises of salary, allowances, performance linked incentiveand contributions to PF and gratuity.

• Non executive directors are paid Rs 20000 for each meeting of the board.

5. Shareholders/investors grievance committee:

I. Grievance committee met 2 during the year.II. Terms of this committee are as follows:

• To review the reports submitted by the registrars and sharetransfer agent at half yearly intervals.

• Follow up on implementations of suggestions for improvement.

• Periodically report to the board about the serious concerns if any.

6. Disclosures:

I. JSW has always been disclosing information regarding the facts andworking status of the company to its shareholders.

II. There are no transactions taking place between with its promoters,directors or relatives which are against the company’s interest.

III. No penalties have been imposed by the stock exchange or SEBI or anyother statutory authority on any matter related to capital market duringthe last 3 years.

IV. The funds raised has been utilize towards the objects of the issue.

V. JSW has been following the Whistle Blower Policy which specifies theprocedure, reporting authority for reporting unethical behavior or fraud. It also provides safeguards against victimization or unfair treatment.

7. Means of Communication :

I. The financial results of the company are sent to stock exchangeimmediately after they are approved by the board. They are alsopublished in the leading newspapers, one in English and one in thevernacular language of the state where the registered office of thecompany is situated.

II. As per the requirements of clause 51 of the listing agreement, all thedata relating to quarterly financial results are being electronically filedon the EDIFAR website within the time frame.

III. Management discussion and analysis report is a part of the annualreport.



MANAGEMENT DISCUSSION AND ANALYSIS

Steel Scenario:

Global Steel Scenario

Growth in Global Crude Steel production, 2007:1

World +8 .4%

China +17.8%

Rest of World + 3.6%

Visible Slow down in US Economy (Q-1, 2007 GDP: +0.7% v/s 5.6%)

Decelerating construction / Rising housing inventory (May-07: +23.5%)

Lower Auto production. (May-07: -1.6%)

Rise in demand for Plates and Pipes driven by booming Oil and Gasindustry

1 Depreciating US$ => Pressure on Domestic prices across all

products

Monsoon in Asia …Slowdown in construction activities

Increase in M & A activity

It is Information revolution taking place in the World.

Higher need of Fixed Asset Investment in the world as the Worldeconomy is expanding.

40 %of Global Steel demand ties up to capital spending and 40% toconstruction activity.

ANALYSIS: Growing Steel Demand



Chinese Element:

Chinese exports higher in first six months at 35 Mn T. Net Exports at25 Mn T.

Production at 237.5 Mn (2007). Growth from 2006 by 18 %

The Chinese government actions to restrain steel exports – includingintroducing export taxes, licensing and withdrawal of rebates, areexpected to slow down Chinese steel product’s exports.

Robust growth of Chinese GDP at 11.5% in 2007.

Chinese steel demand expected to rise by 13% in the second half of 2007(WSD Estimates).

ANALYSIS:

Positive to Steel demand



Steel: Domestic Scene:

Indian Steel Demand Growth is fuelled by the strong wave of

Economic Development: Indian GDP growth rate in FY 2007 is 9.4%.

Industrial production growth rate at 11.7 %( April 06–May 07) from10.8% (April 05-May 06)

DEPB rates increased by 3% to ease the impact of RupeeAppreciation.

Rupee appreciation coupled with correction in international priceshas resulted in price adjustment of Rs. 600 to Rs. 800 per ton from1st July 2007.

Falling Inflation is expected to bring down interest rate which ispositive in creating demand in Retail & Automobile Sector.

ANALYSIS:

Steel Demand in India is growing



Performance highlights:

Key Highlights:

Crude Steel production grew by 26%

Saleable steel sold grew by 16%

Net Sales grew by 37%

EBIDTA grew by 68%

Net Profit grew by 121%

Diluted EPS grew by 112%

* Excluding non recurring Income

Financial Highlights:

Debt repayment of 234 crores

The Weighted Avg.rate of Interest at 7.86% (8.06% without FCCB)

Adjusted Debt Equity ratio at 0.69

Adjusted Long Term Debt to EBITDA at 1.14



MARKETING:

Growth in saleable steel by 26%

Increased efforts in the marketing of galvanized products under the“Jindal Vishwas” brands

Marketed colour-coated sheets in the International and Indianmarket

Nearly 35% of the steel marketed was value-added

The mix was spread across a number of products, varieties andgrades

The mix was influenced by the evolving demand in India and Abroad

RESEARCH AND DEVLOPMENT:

More than 20 process improvements were successfully

implemented at various departments at Vijayanagar Works.

Of the process improvements, four compared well withinternational operational benchmarks

Infrastructural support for R&D department, includingstrengthening of R&D set-up and research facilities



VICE CHAIRMAN’S SPEECH

Mr. Sajjan Jindal is the principal promoter of the company. He is also thechairman of the other group companies and director in several other companies. He ha san experience of 25 years. With the global economywhich is expected to have a boost in the year 2007, the production andsales of the steel sector is also expected to increase at a wider margin. Themain aspects on which the vice chairman, Mr. Sajjan Jindal emphasized inhis speech are as follows:

• The vice chairman stated that the wealth of the company has

increased considerably as compared to that of last year.• Also, the sales have increased and the company has able to capture

a higher market share in this sector.

• The vice chairman states that India has a large hematite reservewhich makes this country one of the best places in the world for production of crude steel

• The company has increased the capacity of crude steel productionso as to capitalize the Indian advantage.

• India is one of the fastest growing economies in the world and theamount of infrastructure and other developments which are takingplace makes India one of the highest consumers of steel in the years

to come.• Mr. Sajjan Jindal ha also said in his speech that the company is

planning to increase its capacity to produce steel to 6 MTPA by theyear 2008 and will continue to increase it.

• The company has extended its vision beyond India to ensure it hascorporate sustainability through creation of subsidiary.

• The vice chairman is very optimistic about the company’s future andhe wants to provide the best of the service to its consumers andshareholders.



NAME OF THE DIRECTORS:

MRS. SAVITRI DEVI JINDALCHAIRPERSON

MR. SAJJAN JINDALVICE CHAIRMAN & MANAGING DIRECTOR

MR.Y SIVA SAGAR RAOJT. MANAGING DIRECTOR & CEO

MR. SESHAGIRI RAO M.V.S.DIRECTOR - FINANCE

DR. S.K. GUPTA - DIRECTOR

MR. ANTHONY PAUL PEDDER -DIRECTOR



MR.UDAY M CHITALE -DIRECTOR

MR.VIJAY KELKAR -DIRECTOR

MR.SUDIPTO SARKAR -DIRECTOR

MR.VINOD NOWALDIRECTOR -COMMERCIAL

MS. ZARIN DARUWALA -NOMINEE DIRECTOR - ICICI BANK LTD.

MRS. SHOBHA NAMBISAN, IAS -NOMINEE DIRECTOR - KSIIDC

MR. JAMBUNATHAN, IAS RETD. -

NOMINEE DIRECTOR - UTI ASSETS MANAGEMENT CO. PVT. LTD.



MR.BISWADIP GUPTADIRECTOR

NAME OF THE AUDITORS:

Deloitte Haskins & Sells

Chartered accountants

NAME OF THE COMMITTEES:

AUDIT COMMITTEE

REMUNERATION COMMITTEE

SHAREHOLDERS/INVESTORS GRIEVIENCE

COMMITTEE



FUTURE STRATEGIES:

Their efforts to keep up the momentum of growth will see them

setting up more facilities and adding to their operations.

On the threshold of major expansion plan, they have now set their sights on a target of augmenting capacity at Vijaynagar works to 10million tones per annum by 2010.

SISCOL, Salem works is being expanded to one million ton capacityin 2007. The plant will make premium quality long products for construction and engineering applications.

10 million tonnes capacity integrated steel plants in West Bengal and

Jharkhand are on the anvil.

Securitization of raw materials through acquiring stakes in iron ore,coking and non coking coal mines in India and abroad.

Targeting a turnover of Rs 20000 crores by March 2009, they aregoing all out to create value for all their stakeholders while retainingtheir consistent performance and even improve it year after year.



CONCLUSION :

Crude Steel Production 26.52 lacs tonnes: Up by18%

Saleable Steel Sold 26.74 lacs tonnes: Up by 26 %

Net Turnover Rs. 8594 Crores: Up by 38 %

EBIDTA Rs. 2922 Crores: Up by 37 %

PBT Rs. 1915 Crores: Up by 47 %

PAT Rs. 1292 Crores: Up by 51 %

Diluted EPS Rs. 78.88: Up by 42 %

Debt gearing 0.75 (0.96 as on 31.03.2006)



BIBLIOGRAPHY

Annual Report of JSW Steel Ltd. 2006-2007

Members of the company at its Bombay office

Website of JSW Steel Ltd.

Balance Sheet Project - FINAL007

Documents

Transcript of Balance Sheet Project - FINAL007