Rating Rationale

July 20, 2015

Mumbai

Jindal Saw Limited

Rating Withdrawn

Fixed Deposit Programme

FA+/Negative (Withdrawal)

CRISIL has withdrawn its rating on the fixed deposit programme of Jindal Saw Ltd (JSAW; a part of the Jindal SAW group) at the company's request. JSAW has repaid all the fixed deposits except Rs.28.18 million in unclaimed deposits (as on July 07, 2015), which are being maintained in a separate account; also, the company has not accepted any fresh deposit after March 31, 2014.

About the Group

JSAW, a Prithviraj Jindal group company, was incorporated in October 1984. The company manufactures submersible arc welded (SAW), seamless, and ductile iron (DI) pipes. Currently, JSAW has capacities of 1,100,000 tonnes per annum (tpa), 740,000 tpa, and 220,000 tpa for longitudinal SAW pipes, horizontal SAW pipes, and seamless pipes, respectively, along with 200,000 tpa for DI pipes, and 10,000,000 square metres per annum for anti-corrosion coating on pipes. It has recently added capacity of 200,000 tpa of DI pipe in Mundra (Gujarat) and 350,000 tpa at Abu Dhabi (the UAE) through its subsidiary. The company has also set up a beneficiation and pelletisation plant (1.2 million tpa) at its captive for iron ore mine head at Bhilwara (Rajasthan). These facilities are now operational.

In 2008, JSAW entered into the infrastructure space-water management, coastal shipping, ship building, power generation from waste, and rail infrastructure through JITF Water Infrastructure Ltd, JITF Waterways Ltd, JITF Urban Infrastructure Ltd, and JITF Rail Infrastructure Ltd, respectively; all these companies are owned through Jindal ITF Ltd, a 100 per cent subsidiary of JSAW and JITF Shipyard Ltd is 100% owned by JSAW.

JSAW, on a consolidated basis, reported profit after tax (PAT) of Rs 147.1 million on net sales of Rs.83.24 billion for 2014-15 (refers to financial year, April 1 to March 31), against net loss of Rs.1 billion on net sales of Rs.66.55 billion for 2013-14.

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July 20, 2015	http://www.crisil.com