JSW Steel understated debt by Rs 11,900cr: Credit Suisse

Credit Suisse has accused JSW Steel of understating its debt by Rs 11,900 crore, reports CNBC-TV18's Kritika Saxena.

Basically the reported net debt was around Rs 16,600 crore while the overall debt as estimated by Credit Suisse comes up to around Rs 28,500 crore.
Now there are three grounds which Credit Suisse maintains – one is that acceptances have gone up by around Rs 6,800 to Rs 7,500 crore on a YoY basis. That has been included in accounts payable and not under net debt as per Credit Suisse.
The brokerage also says that foreign currency except acceptances have gone up by USD 1.2 billion to around USD 1.5, which hasn’t been included as well.
The second and important point is that securitized receivables have gone up by around 19% to Rs 3,100 crore while according to Credit Suisse this should have been mentioned in the net debt of the group companies, aside from that un-hedged position of dollar liabilities close to USD 3 billion.
The brokerage has maintained a target price at around Rs 465 per share, which is crucial. Also watch the accompanying video.