The stock traded 1.4 per cent lower at Rs 712.10 on the BSE, while the Sensex traded flat at 17,529.
The brokerage firm says JSW Steel has understated debt on three counts:
1) Its acceptances went up from Rs 6,800 crore in FY11 to Rs 7,500 crore in FY12. While the rupee fall played a role, foreign currency acceptances increased from $1.2 billion to $1.5 billion year-on-year. These are classified under accounts payable, and not included in debt.
2) Securitised receivables are now Rs 3,100 crore, up 19 per cent YoY. Contingent liabilities are now Rs 5,600 crore. Other components are Rs 1,100 crore of subsidiary loans guaranteed, and Rs 500 crore of FDT-related disputes.
3) Un-hedged portion of dollar liabilities is now close to $3 billion. Every one rupee fall in dollar-rupee would hurt book value by 1.8 per cent.