JSPL's interest payment delays due to cash flow mismatches: Naveen Jindal

JSPL Chairman Naveen Jindal has said that brief discrepancy in the flow of cash last fiscal led to temporary delays in meeting some interest obligations of the company.

The debt-laden firm had defaulted in December on interest payment on non-convertible debentures.

"JSPL faced short-term cash flow mismatches during FY 2016-17, which resulted in temporary delays in meeting a few interest obligations," Jindal said in the company's Annual Report 2016-17.

For suitable solutions, he said, the company continuously engaging with its long-term banking partners.

Jindal said that he acknowledges faith and trust reposed by the banking partners in the company during the challenging times.

"Since inception, JSPL (Jindal Steel and Power Ltd) has had an impeccable track record for meeting all its financial commitments; and remains committed to honour all its current and future obligations," he said.

During the challenging times, JSPL said, it was often referred to as a debt-heavy company, with a net debt of around Rs 46,000 crore.

"In isolation, the debt levels may appear significantly high. However, when seen in the right perspective, with a diversified and prudently spread out asset base of close to Rs 75,000 crore, the same debt level would appear rational and reasonable," it said.

Of a debt of Rs 46,000 crore, he said, around Rs 25,000 crore was in domestic steel-making business, Rs 8,600 crore in power generation assets and remaining Rs 12,400 crore was in integrated steel plant in Oman, along with coal mining operations in Australia, Mozambique and South Africa.

JSPL had reported consolidated net loss of Rs 420.4 crore for the quarter ended June 30, 2017.