JINDAL STEEL AND POWER LIMITED
ANNUAL REPORT 2009-2010
NOTES ON ACCOUNTS
A. Significant Accounting Policies:
i) Basis of Preparation of Financial Statements
The financial statements are prepared under the historical cost convention,
on going concern basis and in terms of the Accounting Standards issued by
the Institute of Chartered Accountants of India and in compliance with
Section 211(3C) of the Companies Act, 1956. The Company follows the
mercantile system of accounting and recognises income and expenditure on
accrual basis to the extent measurable and where there is certainty of
ultimate realisation in respect of incomes. Accounting policies not
specifically referred to otherwise are consistent and in consonance with
the generally accepted accounting principles in India.
ii) Fixed Assets and Depreciation
a) Fixed Assets
Fixed Assets are stated at cost of acquisition inclusive of incidental
expenses related thereto and are net of CENVAT/VAT credit. Fixed assets
acquired by the Company pursuant to a Scheme of Arrangement are stated at
their transfer values.
b) Expenditure during construction period
Expenditure related to and incurred during implementation of new/expansion-
cum-modernisation projects is included under capital work-in-progress and
the same is allocated to the respective Fixed Assets on completionof its
construction/erection. Interest on borrowing costs related to a qualifying
asset is worked out on the basis of actual utilisation of funds out of
project specific loans and/or other borrowings to the extent identifiable
with the qualifying asset and is capitalised with the cost of the
qualifying asset.
c) Intangible Assets
Intangible Assets are recognised on the basis of recognition criteria as
set out in Accounting Standard (AS-26) Intangible Assets'.
d) Depreciation and Amortisation
Depreciation on fixed assets is provided on straight-line method (SLM) at
the rates and in the manner specified in Schedule XIV to the Companies Act,
1956. Leasehold Land and Aircraft are being amortised over the period of
lease. In the case of assets where impairment loss is recognised, the
revised carrying amount is depreciated over the remaining estimated useful
life of the asset.
Certain Plant and Machinery have been considered as continuous process
plant on the basis of technical assessment and depreciation on the same is
provided for accordingly. Intangible Assets are amortised over the expected
duration of benefits not exceeding ten years.
iii) Foreign Currency Transactions
Foreign currency transactions are recorded at the rate of exchange
prevailing at the date of the transaction. Monetary foreign currency assets
and liabilities are translated at the year-end exchange rates and resultant
gains / losses are recognised in the profit & loss account for the year,
except to the extent that they relate to new projects till the date of
capitalisation which are carried to pre-operative expenses and those
relating to fixed assets which are adjusted to the carrying cost of the
respective assets.
In case of forward foreign exchange contracts, exchange differences are
dealt with in the profit & loss account over the life of the contract
except those relating to fixed assets in which case they are capitalised
with the cost of respective fixed assets. Non-monetary foreign currency
items are carried at historical cost.
In case of foreign subsidiaries, with non-integral foreign operations,
revenue items are converted at the average rate prevailing during the year.
All assets and liabilities are converted at the rates prevailing at the end
of the year. Exchange difference arising on conversion is recognised in
Foreign Currency Translation Reserve.
iv) Investments
Long-term investments are carried at cost. Provision is made when, in the
opinion of the management, diminution in the value of investment is other
than temporary in nature. Current investments are carried at the lower of
cost or market / fair value.
v) Valuation of Inventories
Raw Materials and Stores & Spares are valued at lower of cost, computed on
weighted average basis, and net realisable value. Cost includes the
purchase price as well as incidental expenses. Scrap is valued at estimated
realisable value.
Work-in-progress is valued at lower of estimated cost and net realisable
value and finished goods are valued at lower of cost and net realisable
value. Cost for this purpose includes direct cost and appropriate
administrative and other overheads.
vi) Inter-Division Transfers
Inter-division transfer of goods, as independent marketable products
produced by separate divisions for captive consumption, is transferred at
approximate prevailing market price. The same is shown as a contra item to
reflect the true working of the respective divisions in the Profit and Loss
Account. Any unrealised profit on unsold stocks is eliminated while valuing
the inventories. The value of such inter-divisional transfer is netted off
from sales and operational income and expenses under materials,
manufacturing and others.
Inter-divisional transfer/captive consumption to Fixed Assets is at cost.
vii) Employee Benefits
Expenses & liabilities in respect of employee benefits are recorded in
accordance with Accounting Standard (AS)-15 -Employee Benefits (revised
2005) issued by ICAI.
a) Provident Fund
The Company makes contribution to statutory provident fund in accordance
with the Employees Provident Fund & Miscellaneous Provisions Act, 1952
which is a defined contribution plan and contribution paid or payable is
recognised as an expense in the period in which services are rendered by
the employee.
b) Gratuity
Gratuity is a post employment benefit and is in the nature of a defined
benefit plan. The liability recognised in the Balance Sheet in respect of
gratuity is the present value of the defined benefit/obligation at the
Balance Sheet date less the fair value of plan assets, together with
adjustment for unrecognised actuarial gains or losses and past service
costs. The defined benefit/obligation is calculated at or near the Balance
Sheet date by an independent Actuary using the projected unit credit
method.
c) Compensated absences
Liability in respect of Compensated absences due or expected to be availed
within one year from the Balance Sheet date is recognised on the basis of
undiscounted value of estimated amount required to be paid or estimated
value of benefit expected to be availed by the employees. Liability in
respect of compensated absences becoming due or expected to be availed more
than one year after the Balance Sheet date is estimated on the basis of an
actuarial valuation performed by an independent Actuary using the projected
unit credit method.
d) Other short term benefits
Expense in respect of other short term benefits is recognised on the basis
of the amount paid or payable for the period during which services are
rendered by the employee.
viii) Excise Duty and Customs Duty
Excise Duty liability on finished goods manufactured and lying in the
factory is accounted for and the corresponding amount is considered for
valuation thereof. Customs duty in respect of materials lying in bonded
premises and in transit is accounted for as and when the property in the
goods passes to the Company.
ix) Miscellaneous Expenditure
The following expenditure shown under 'miscellaneous expenditure' is
amortised as follows:
a) Share issue expenses are written off over a period of ten years.
b) Debenture/Bonds issue expenses and premium on redemption are written off
over the period of Debentures/Bonds.
c) Iron Ore mines/Coal mines development expenditure and Railway plot
development expenditure etc., are written off over a period of ten years.
x) Revenue Recognition
a) Sales and Operational income is inclusive of excise duty, export
benefits and inter-divisional transfer but net of returns, rebates and
sales tax. Materials returned/rejected are accounted for in the year of
return/rejection. Sales net of excise duty and inter-divisional transfer is
also disclosed separately.
b) Export sales are accounted for on the basis of the date of bill of
lading / airways bill.
c) Income from job charges is accounted for at the time of billing.
d) Since it is not possible to ascertain with reasonable certainty, the
quantum of accruals in respect of certain claims of Railways, Insurance,
Electricity, Customs and Excise, the same continue to be accounted for on
acceptance basis.
xi) Export benefits
Export benefits available under the Export Import policy of the Government
of India are accounted for in the year of export, to the extent measurable.
xii) Accounting for Leases
In respect of finance lease, the same is recognised as an asset and a
liability to the lessor at fair value at the inception of the lease.
In respect of operating lease, the lease payments as per respective lease
agreements are recognised as expense in the profit and loss account on a
straight-line basis.
xiii) Research and Development Expenditure
Research and Development expenditure not fulfilling the recognition
criteria as set out in Accounting Standard (AS-26) on Intangible Assets'
is charged to the profit and loss account while capital expenditure is
added to the cost of fixed assets in the year in which it is incurred.
xiv) Taxes on Income
Provision for current tax is made considering various allowances and
benefits available to the Company under the provisions of the Income Tax
Act, 1961.
In accordance with Accounting Standard (AS-22) 'Accounting for Taxes on
Income' issued by the Institute of Chartered Accountants of India, deferred
taxes resulting from timing differences between book and tax profits are
accounted for at the tax rate substantively enacted by the Balance Sheet
date to the extent the timing differences are expected to be crystallised.
Deferred tax assets are recognised to the extent there is
reasonable/virtual certainty of realising such assets against future
taxable income.
xv) Impairment of Assets
Specified assets are reviewed for impairment wherever events or changes in
circumstances indicate that the carrying amount may not be recoverable. An
impairment loss is recognised for the amount for which the asset's carrying
amount exceeds its recoverable amount being the higher of the assets net
selling price and its value in use. Value in use is based on the present
value of the estimated future cash flows relating to the asset. For the
purpose of assessing impairment, assets are grouped at the lowest level for
which there are separately identifiable cash flows (i.e. cash generating
units).
Previously recognised impairment losses, relating to assets other than
goodwill, are reversed where the recoverable amount increases because of
favourable changes in the estimates used to determine the recoverable
amount since the last impairment was recognised. A reversal of an asset's
impairment loss is limited to its carrying amount that would have been
determined (net of depreciation or amortisation) had no impairment loss
been recognised in prior years.
xvi) Provisions and Contingent Liabilities
Provisions are recognised for present obligations of uncertain timing or
amount arising as a result of a past event where a reliable estimate can be
made and it is probable that an outflow of resources embodying economic
benefits will be required to settle the obligation. Where it is not
probable that an outflow of resources embodying economic benefits will be
required or the amount cannot be estimated reliably, the obligation is
disclosed as a contingent liability, unless the probability of outflow of
resources embodying economic benefits is remote. Possible obligations,
whose existence will only be confirmed by the occurrence or non-occurrence
of one or more uncertain events, are also disclosed as contingent
liabilities unless the probability of outflow of resources embodying
economic benefits is remote.
xvii) Employee Stock Option Scheme
Stock options granted to the employees of the Company and its subsidiary
under the Company's Stock Option schemes are evaluated as per the
accounting treatment prescribed by the Employee Stock Option Scheme and
Employee StockPurchase Scheme Guidelines, 1999 issued by the Securities and
Exchange Board of India. Accordingly, excess of market value of the stock
option as on date of grant over the exercise price of the options is
recognised as deferred employee compensation and is charged to the profit
and loss account as employee cost on straight line method over the vesting
period of the options.
B. Notes to Accounts
1. Contingent Liabilities not provided for in respect of:
(Rs. in Crores)
Description Current Year Previous Year
a) Guarantees issued by the Company's
Bankers on behalf of the Company 323.39 332.91
b) Letter of credit opened by banks 1234.89 1315.35
c) Corporate guarantees/undertakings issued
on behalf of third parties. 1825.95 126.41
d) Disputed Excise Duty and Other demands 632.30 213.77
e) Future liability on account of
lease rent for unexpired period. 8.85 -
f) Bonds executed for machinery imports
under EPCG Scheme 2529.15 1103.10
g) Income Tax demands where the cases are
pending at various stages of appeal with
the authorities 111.03 109.81
2. Estimated amount of contracts remaining to be executed on capital
account and not provided for (net of advances): Rs. 6163.80 Crores
(Previous year Rs. 4517.09 Crores).
3. In accordance with the guiding principles enunciated in Accounting
Standard (AS-29) Provisions, Contingent Liabilities and Contingent Assets'
and based on management assessment, the Company has made a provision for
contingencies on account of duties and taxes payable under various laws. At
the beginning of the financial year, there was an outstanding provision of
Rs. 156.02 Crores (Previous year Rs. 107.49 Crores). The Company made an
additional provision of Rs. Nil during the year (Previous year Rs. 48.53
Crores) and the amount utilised during the year was Rs. Nil (Previous year
Rs. Nil). At the end of the financial year, there is an outstanding
provision of Rs. 156.02 Crores (Previous year Rs. 156.02 Crores).
4. One of the Company's expansion units at Raigarh (Chhattisgarh) is
eligible for sales tax exemption owing to its investment in capital assets
under the State industrial policy which aims towards the objective of
industrialisation of the State and development of backward areas. The
period of exemption is linked to the quantum of investment. The Company has
been advised that the element of sales tax included in the sales price of
products sold out of this Unit is the nature of sales tax subsidy granted
by the State Government. Accordingly, the same amounting to Rs. 33.33
Crores (Previous year Rs. 50.04 Crores) has been credited during the year
to Sales Tax Subsidy Reserve Account. The cumulative amount credited to
Sales Tax Subsidy Reserve Account up to 31st March, 2010 is Rs. 164.96
Crores (Previous year Rs. 131.63 Crores).
5. a) Provision for current income tax has been made considering various
benefits and allowances available to the Company under the provisions of
the Income Tax Act, 1961.
b) Movement of deferred tax provision/adjustment in accordance with
Accounting Standard (AS-22) 'Accounting for Taxes on Income' issued by the
Institute of Chartered Accountants of India is as under:
(Rs. in Crores)
A B C D E
A. Deferred Tax Assets
a) Disallowance u/s 43-B
of the Income Tax Act, 1961 (52.18) (25.89) (78.07) (8.94) (87.01)
b) Provision for Doubtful
Debtors (2.31) 0.52 (1.79) 0.27 (1.52)
Total Deferred Tax Assets (54.49) (25.37) (79.86) (8.67) (88.53)
B. Deferred Tax Liabilities
1) Difference between Book
and Tax Depreciation 549.08 129.52 678.60 123.90 802.50
2) Miscellaneous Expenditure
written off 0.08 0.95 1.03 - 1.03
Total Deferred Tax
Liabilities 549.16 130.47 679.63 123.90 803.53
C. Total Deferred Tax (Net) 494.67 105.10 599.77 115.23 715.00
A = As on 1st April, 2008
B = Charge/(Credit) during 2008-09
C = As on 1st April, 2009
D = Charge/(Credit) during the year
E = As on 31st March, 2010
6. Additions / (Adjustments) to Plant and Machinery/Capital work-in-
progress includes adjustment of Rs. 149.87 Crores (Previous year Rs.
(377.39) Crores) on account of foreign exchange fluctuation on long-term
liabilities relating to acquisition of Fixed Assets.
7. Donations include Rs. 0.50 Crores (Previous year Rs. Nil) to Haryana
Pradesh Congress Committee and Rs. Nil (Previous year Rs. 0.02 Crores) to
Keonjhar District Congress Committee as contribution to political parties.
8. Sales / Adjustments in gross block and depreciation under Schedule 5
includes the assets taken out of active use during the financial year of
Rs. 19.80 Crores and Rs. 1.89 Crores (Previous year Rs. Nil and Rs. Nil)
respectively. The resultant net block of Rs. 17.91 Crores (Previous year
Rs. Nil) has been considered under inventory of stores & spares.
9. The Employees Stock Option Scheme - 2005 (ESOS-2005) was approved by the
shareholders of the Company in their Annual General Meeting held on 25th
July, 2005 and amended by shareholders on 27th September, 2006. Under ESOS-
2005, a maximum of 1,100,000 (Eleven lacs) equity shares of Rs. 5/- each
could be granted to the employees of the Company and its subsidiary
company(ies). In-principle approval from National Stock Exchange of India
Limited and Bombay Stock Exchange Limited was given on 01.02.2006. A
Compensation Committee was constituted by the Board of Directors of the
Company in their meeting held on 12th May, 2005 for theadministration of
ESOS-2005. Under ESOS-2005, the Compensation Committee has granted stock
options as follows:
a) 859,400 (Eight lacs fifty nine thousand four hundred) stock options on
26.11.2005 at an exercise price of Rs. 1,014/- per share (Series - I) which
would vest after 2 years from the date of grant to the extent of 50% (Part
1), after 3 years from the date of grant to the extent of 25% (Part 2) and
after 4 years from the date of grant to the extent of 25% (Part 3);
b) 129,550 (One lac twenty nine thousand five hundred fifty) stock options
on 02.09.2006 at an exercise price of Rs. 1,121/- per share (Series - II)
which would vest after 2 years from the date of grant to the extent of 50%
(Part 1), after 3 years from the date of grant to the extent of 25% (Part
2) and after 4 years from the date of grant to the extent of 25% (Part 3);
and
c) 136,950 (One lac thirty six thousand nine hundred fifty) stock options
on 27.04.2007 at an exercise price of Rs. 1,819/- per share (Series - III)
which would vest after 2 years from the date of grant to the extent of 50%
(Part 1), after 3 years from the date of grant to the extent of 25% (Part
2) and after 4 years from the date of grant to the extent of 25% (Part 3).
Pursuant to Clause 5.3 (f) of SEBI (Employees Stock Option Scheme and
Employees Stock Purchase Scheme) Guidelines, 1999 and para 18 of the
Employees Stock Option Scheme -2005 of the Company, the Compensation
Committee is authorised to make a fair and reasonable adjustment to the
number of options and to the exercise price in respect of options granted
to the employees under the Scheme in case of corporate actions such as
right issue, bonus issue, merger etc.
On 27.12.2007, sub-division of the face value of each equity share of the
Company from Rs. 5/- to 5 equity shares of Re. 1/- each was approved by the
shareholders in their General Meeting. Thereafter, the Compensation
Committee has, in its meeting held on 27.01.2008, made an adjustment to the
exercise price by reducing it in case of Series I to Rs. 203/- Series II to
Rs. 225/- and Series III to Rs. 364/- per equity share of Re. 1/- each and
to the number of options by increasing it 5 times the original grant
consequent to which the number of maximum options that could be issued
under the Employees Stock Option Scheme-2005 increased to 5,500,000 (Fifty
five lacs) [originally 1,100,000 (Eleven lacs)]
Thereafter, the following allotments of equity shares were made under ESOS-
2005 on the exercise of options:-
a) 691,343 (Six lacs ninety one thousand three hundred forty three) equity
shares of Re. 1/- each were allotted on 16th June, 2008 on exercise of
options granted under Part 1 of Series I of ESOS 2005;
b) 57,136 (Fifty seven thousand one hundred thirty six) equity shares of
Re. 1/- each were allotted on 13th April, 2009 on exercise of options
granted under Part 1 of Series II of ESOS 2005;
c) 420,487 (Four lacs twenty thousand four hundred eighty seven) equity
shares of Re. 1/- each were allotted on 21st July, 2009 on exercise of
options granted under Part 2 of Series I of ESOS 2005.
The remaining 4,331,034 (Forty three lacs thirty one thousand thirty four)
equity shares of Re. 1/- each were available for allotment under ESOS -2005
after the above 3 allotments.
On 4th September, 2009, issue of 5 equity shares of Re. 1/- each as bonus
shares on each existing equity share of the Company was approved by the
shareholders in their General Meeting and on 19th September, 2009, fully
paid-up bonus shares were allotted.
Thereafter, pursuant to Clause 5.3 (f) of SEBI (Employees Stock Option
Scheme and Employees Stock Purchase Scheme) Guidelines, 1999 and para 18 of
the Employees Stock Option Scheme - 2005 of the Company, the Compensation
Committee has, in its meeting held on 31st October, 2009 made the following
adjustments:-
a) The number of unexercised options and options yet to be granted is
increased by 5 times consequently increasing the number of unexercised and
options yet to be granted from 4,331,034 (Forty three lacs thirty one
thousand thirty four) to 25,986,204 (Two Crores fifty nine lacs eighty six
thousand two hundred four);
b) The price of unexercised options was reduced in case of Series I to
Rs.34/-, Series II to Rs. 38/- and Series III to Rs. 61/- per equity share
of Re. 1/- each.
In-principle approval for listing of additional 21,655,170 (Two Crores
sixteen lacs fifty five thousand one hundred seventy) equity shares were
obtained from National Stock Exchange of India Limited and Bombay Stock
Exchange Limited.
Thereafter, the following allotments of equity shares were made under ESOS-
2005 on exercise of options:- 452,246 (Four lacs fifty two thousand two
hundred forty six) equity shares of Re. 1/- each were allotted on 30th
January, 2010 on exercise of options granted under part 1 of Series III of
ESOS 2005.
The details of ESOS-2005 are as under:
ESOS-2005
Series-I Series-II Series-III
1. Grant Price-Rupees 34 38 61
2. Grant Date 26.11.2005 02.09.2006 27.04.2007
3. Vesting commences on 26.11.2007 02.09.2008 27.04.2009
4. Vesting Schedule 50% of grant 50% of grant 50% of grant
on 26.11.2007, on 02.09.2008, on 27.04.2009,
subsequent subsequent subsequent
25% of grant 25% of grant 25% of grant
on 26.11.2008 on 02.09.2009 on 27.04.2010
and balance and balance and balance
25% of grant on 25% of grant 25% of grant
26.11.2009 on 2.9.2010 on 27.4.2011
5. Option granted and
outstanding at the
beginning of the year 1,692,750 376,250 496,750
6. Option enhanced during
the year (due to adjustment
on account of bonus shares) 4,128,425 864,375 2,483,750
7. Option lapsed and/or
withdrawn during the period 446,578 146,239 1,047,004
8. Option exercised during
the year against which
shares were allotted 420,487 57,136 452,246
9. Option granted and 4,954,110 1,037,250 1,481,250
outstanding at the end
of the year of which
- Options vested
- Options yet to vest 4,954,110 518,625 -
- 518,625 1,481,250
10. As per Accounting Standard (AS-15) 'Employee Benefits', the disclosure
of employee benefits as defined in the Accounting Standard is given below:
(Monetary figures Rs. in Crores)
Current Year Previous Year
Gratuity Leave Gratuity Leave
Encashment Encashment
I. Components of Employer Expense Funded Unfunded Funded Unfunded
1 Current Service Cost 1.51 6.35 1.17 4.96
2 Interest Cost 0.76 2.07 0.64 1.09
3 Expected Return on Plan Assets (0.76) - (0.49) -
4 Curtailment Cost / (Credit) - - - -
5 Settlement Cost / (Credit) - - - -
6 Past Service Cost 8.37 - - -
7 Actuarial Losses/(Gains) (0.54) (1.00) 0.13 7.93
8 Total expense recognised in
the Profit and Loss Account 9.34 7.43 1.45 13.98
II. Actual Returns for the year
ended March 31, 2010 0.66 - 0.78 -
III. Net Assets/(Liability)
recognised in the Balance
Sheet as at March 31, 2010:
1 Present value of Defined
Benefit Obligation (21.13) (31.92) (9.51) (26.15)
2 Fair Value of Plan Assets 9.97 - 7.04 -
3 Status {Surplus/
(Deficit)} (1-2) (11.16) (31.92) (2.47) (26.15)
4 Unrecognised Past Service Cost 2.00 - - -
Net Assets/(Liability) recognised
in the Balance Sheet (3+4) (9.16) (31.92) (2.47) (26.15)
IV. Change in Defined Benefit
Obligation (DBO) during the year
ended March 31, 2010
Present Value of DBO at the
beginning of the year (9.51) (26.15) (7.56) (13.15)
1 Current Service Cost (1.51) (6.35) (1.17) (4.96)
2 Interest Cost (0.76) (2.07) (0.64) (1.09)
3 Curtailment Cost/(Credit) - - - -
4 Settlement Cost/(Credit) - - - -
5 Plan Amendments (10.37) - - -
6 Acquisitions - - - -
7 Actuarial Losses / (Gains) (0.65) (1.00) 0.41 7.93
8 Benefits Paid 0.37 1.65 0.27 0.98
Present Value of DBO at the
end of the year (21.13) (31.92) (9.51) (26.15)
V. Change in Fair Value of
Assets during the year
ended March 31, 2010:
Plan Assets at the beginning
of the year 7.04 - 4.37 -
1 Acquisition Adjustment - - - -
2 Expected Return on Plan Assets 0.76 - 0.49 -
3 Actuarial Losses / (Gains) 0.10 - (0.29) -
4 Actual Company Contribution 2.64 1.65 2.16 0.98
5 Benefit Paid (0.37) (1.65) (0.27) (0.98)
Plan Assets at the
end of the year 9.97 - 7.04 -
VI. Actuarial Assumptions
1 Discount Rate (%) 8.50 8.50 8.20 8.20
2 Expected Return on
Plan Assets (%) 9.00 - 9.25 -
11. A. Pre-operative expenditure forming part of capital work in-progress
is as under:
(Rs. in Crores)
Current Year Previous Year
Amount brought forward from last year 274.54 33.55
Add: Expenditure incurred during the year
Personnel expenses 52.25 12.89
Consultancy charges 20.18 48.91
Financial expenses 39.99 38.61
Depreciation 5.48 1.28
Foreign exchange fluctuation (Net) 28.33 377.39
Miscellaneous expenses 40.81 29.33
461.58 541.96
Less: Capitalised as part of
Plant and Machinery 10.77 259.29
Building 9.92 0.02
Other fixed assets 0.68 8.11
Amount carried forward under capital
work-in-progress 440.21 274.54
B. Expenditure during Trial Run period relating to Wire Rod Mill has been
capitalised as Fixed Asset as under:
Description Current Year Previous Year
Income
Sales 1.79 -
Increase/Decrease in Stock 8.87 -
Total Income (A) 10.66 -
Less :- Expenditure
Raw materials consumed 8.98 -
Power and Fuel 2.57 -
Personnel expenses 3.24 -
Stores and spare parts consumed 0.24 -
Repairs and Maintenance 0.04 -
Excise duty paid 0.31 -
Depreciation 0.09 -
Other Expenses 1.23 -
Total Expenditure (B) 16.70 -
(A-B) Loss during Trial run period during the
current financial year 6.04 -
Add: amount brought forward - -
TOTAL 6.04 -
Capitalised with the cost of fixed assets. 6.04 -
12. Accounting for Leases:
Finance Lease
The Company has one aircraft acquired under finance lease. The lease has a
primary period which is fixed and non-cancelable. The agreement provides
for revision of lease rentals in the event of changes in (a) taxes, if any,
leviable on the lease rental, (b) the rates of depreciation under the
Income Tax Act, 1961 and (c) change in the lessor's cost of borrowing.
There are no exceptional / restrictive covenants in the lease agreement.
The minimum lease rentals as at March 31, 2010 and the present value as at
March 31, 2010 of minimum lease payments inrespect of assets acquired under
finance lease are as follows:
(Rs. in Crores)
Minimum Lease Present value of
Payment Minimum Lease
payment
As at As at
31st 31st 31st 31st
March, March, March, March,
2010 2009 2010 2009
I) Payable not later than 1 year - 2.06 - 1.84
II) Payable later than 1 year
and not later than 5 years - 2.56 - 2.45
III) Payable later than 5 years - - - -
Total (I+II+III) - 4.62 - 4.29
Less: Future Finance Charges - 0.33
Present Value of Minimum
Lease Payments - 4.29 - -
As per the terms of the lease agreement, the lease agreement has been
terminated during the year.
13. The Company has unquoted investments of Rs. 1075.78 Crores in body
corporates (Previous year Rs. 1071.88 Crores). Considering that the fall in
the value of some of the investments had been a continuing one,
themanagement had made a provision for diminution in the value of
investments of Rs. 11.54 Crores during the earlier years. Based on the
financial position of the investee companies, the management is of the view
that the provision created as aforesaid is adequate.
14. In the opinion of the Board, Current Assets, Loans and Advances have a
value on realisation in the ordinary course of business at least equal to
the amount at which they are stated and provision for all known liabilities
has been made.
15. The Company has so far not received information from vendors regarding
their status under the Micro, Small and Medium Enterprises Development Act,
2006 and hence disclosure relating to amounts unpaid as at the year-end
together with interest paid / payable under this Act has not been given.
16. In the Previous year, dividend proposed relating to the shares under
ESOP was made on the basis of options vested but not exercised till the end
of the financial year. Provision made in respect of options lapsed and not
exercised in the current year has been adjusted with the dividend proposed
for the year ended on 31st March, 2010.
17. The Company has made a provision of Rs. 4.28 Crores (Previous year Rs.
Nil) for Corporate Dividend Tax on the amount of dividend proposed for the
year ended 31st March, 2010 after considering the set-off against corporate
dividend tax payable by a subsidiary company on the interim dividend
declared by it for the same financial year, as per the provisions of
section 115-O of the Income Tax Act, 1961.
18. Segment Reporting as required by Accounting Standard (AS-17) issued by
the Institute of Chartered Accountants of India:
(Rs. in Crores)
Particulars Current Year Previous Year
1. Segment Revenue
a) Iron and Steel 7,590.16 8,279.16
b) Power 1,049.87 868.61
c) Others 108.86 67.55
Sub-Total 8,748.89 9,215.32
Less: Inter-segment Revenue 853.31 757.78
Net Segment Revenue 7,895.58 8,457.54
2. Segment Results (Profit(+)/Loss(-) before
Tax and interest from each segment)
a) Iron and Steel 1,874.66 2,012.08
b) Power 486.92 474.87
c) Others 6.05 8.73
Sub-Total 2,367.63 2,495.68
Less: Interest, financial expenses and lease rent 239.95 203.99
Other un-allocable expenditure
(net of un-allocable income) 220.18 289.81
Profit before Tax 1,907.50 2,001.88
Provision for Taxation
- Income Tax and FBT 312.52 360.11
- Deferred Tax 115.23 105.10
- Wealth Tax 0.07 0.19
Profit after tax 1,479.68 1,536.48
3. Other Information
I. Segment Assets
a) Iron and Steel 13,689.26 9,207.55
b) Power 2,747.18 1,646.04
c) Others 183.52 144.86
d) Un-allocated Assets* 3,466.42 3,411.30
Total Assets 20,086.38 14,409.75
II. Segment Liabilities
a) Iron and Steel 2,290.82 2,370.06
b) Power 31.31 29.64
c) Others 16.52 16.88
d) Un-allocated Liabilities 2,618.47 1,615.20
Total Liabilities 4,957.12 4,031.78
III. Capital Expenditure
(Including Capital work in Progress)
a) Iron and Steel 4,702.70 2,999.39
b) Power 1,016.13 91.01
c) Others 22.89 12.77
Total 5,741.72 3,103.17
IV. Depreciation
a) Iron and Steel 443.08 365.69
b) Power 64.82 64.22
c) Others 4.26 3.12
Total 512.16 433.03
V. Non-Cash expenditure other than depreciation
a) Iron and Steel (5.03) (5.24)
b) Power - -
c) Others - -
Total (5.03) (5.24)
*Unallocated assets include capital work in progress relating to ongoing
projects with corresponding liabilities under unallocated liabilities.
19. Related party disclosure as required by Accounting Standard (AS-18)
issued by the Institute of Chartered Accountants of India:
A. List of Related Parties and Relationships
a) Subsidiaries, Step down Subsidiaries, Associates and Joint Ventures:
Subsidiaries:
1. Jindal Minerals & Metals Africa Limited (JMMAL)
2. Jindal Power Limited (JPL)
3. Jindal Power Trading Company Ltd. [formerly Chhattisgarh Energy Trading
Company Ltd (CETCL)], (Till 02.05.2009)
4. Jindal Steel & Power (Mauritius) Limited (JSPML)
5. Jindal Steel Bolivia SA (JSB)
Step down Subsidiaries:
1. Affiliate Overseas Limited, a subsidiary of JSPML
2. Attunli Hydro Electric Power Company Limited, a subsidiary of JPL
(w.e.f. 19.05.2009)
3. Belde Empreendimentos Mineiros Limited, a subsidiary of JSPL Mozambique
Minerais LDA
4. Eastern Solid Fuels Pty. Limited, a subsidiary of Jindal Mining &
Exploration Limited (w.e.f. 17.06.2009)
5. Enduring Overseas Limited, a subsidiary of JSPML
6. Etalin Hydro Electric Power Company Limited, a subsidiary of JPL (w.e.f.
16.05.2009)
7. Gas to Liquids International S.A., a subsidiary of WOL
8. Harmony Overseas Limited, a subsidiary of JSPML
9. Jindal Africa Investments (Pty) Limited, a subsidiary of JSPML
10. Jindal Brasil Mineracao SA, a subsidiary of JSPML
11. Jindal DRC SPRL, a subsidiary of JSPML (w.e.f. 30.06.2009)
12. Jindal Hydro Power Limited, a subsidiary of JPL
13. Jindal Investimentos LDA, a subsidiary of JSPML (w.e.f. 13.11.2009)
14. Jindal Investment Holdings Limited, a subsidiary of JSPML
15. Jindal Madgascar SARL, a subsidiary of JSPML (w.e.f. 01.09.2009)
16. Jindal Minerals and Metals Africa Congo SPRL, a subsidiary of JMMAL
17. Jindal Minerals Mining Limited, a subsidiary of JSPML (w.e.f.
04.06.2009)
18. Jindal Mining & Exploration Limited, a subsidiary of JSPML
19. Jindal Mining Industry LLC, a subsidiary of JSPML
20. Jindal Mining Pty. Limited, a subsidiary of Eastern Solid Fuels PTY
Limited (w.e.f. 17.06.2009)
21. Jindal Petroleum (Georgia) Limited, a subsidiary of Jindal Petroleum
(Mauritius) Limited, (Till 30.06.2009)
22. Jindal Petroleum (Mauritius) Limited, a subsidiary of Jindal Petroleum
Limited, (Till 30.06.2009)
23. Jindal Petroleum Limited, a subsidiary of JPL, (Till 30.06.2009)
24. Jindal Petroleum Operating Company LLC, a subsidiary of Jindal
Petroleum (Georgia) Ltd., (Till 30.06.2009)
25. Jindal Power Distribution Limited, a subsidiary of JPL
26. Jindal Power LLC, a subsidiary of JSPML
27. Jindal Power Trading Company Limited [formerly Chhattisgarh Energy
Trading Company Limited (CETCL)], (From 02.05.2009), a subsidiary of JPL
28. Jindal Power Transmission Limited, a subsidiary of JPL
29. Jindal Steel & Power LLC, a subsidiary of JSPML, (wound up during 2009-
10)
30. JSPL Mozambique Minerais LDA, a subsidiary of JSPML
31. Jubilant Overseas Limited, a subsidiary of JSPML
32. Kasai Sud Diamant, a subsidiary of Jindal DRC SPRL (w.e.f. 30.06.2009)
33. Osho Madagascar SARL, a subsidiary of JSPML
34. Power Plant Engineers Limited, a subsidiary of JPL, (Till 30.06.2009)
35. PT Jindal Overseas, a subsidiary of JSPML
36. Rolling Hills Resources LLC, a subsidiary of JSPML
37. Skyhigh Overseas Limited, a subsidiary of JSPML
38. Subansiri Hydro Electric Power Company Limited, a subsidiary of JPL
39. Trans Atlantic Trading Limited, a subsidiary of JSPML
40. Vision Overseas Limited, a subsidiary of JSPML
41. Worth Overseas Limited (WOL), a subsidiary of JSPML
Associates and Joint Ventures:
1. Angul Sukinda Railway Limited
2. Globleq Singapore Pte. Limited, (Till 21.12.2009)
3. Jindal Synfuels Limited (formerly Jindal Coal to Liquid Limited)
4. Nalwa Steel & Power Limited (formerly known as Nalwa Sponge Iron
Limited)
5. Saras Mineracao De Ferro SA (Under Process of Winding up) [Associate of
Jindal Steel & Power (Mauritius) Limited]
6. Shresht Mining and Metals Private Limited, incorporated Joint Venture
b) Key Management Personnel:
1. Shri Naveen Jindal (Exec. Vice Chairman & Managing Director)
2. Shri Vikrant Gujral (Group Vice Chairman & Head Global Ventures)
3. Shri Anand Goel (Jt. Managing Director, Corporate Affairs)
4. Shri Arun K. Mukherji (Whole Time Director)
5. Shri Ashok Alladi (Whole Time Director upto 31.08.2009)
c) Enterprises over which Key Management Personnel and their relatives
exercise significant influence and with whom transactions have taken place
during the year:
1. Advance Sporting Arms Private Limited
2. Bir Plantation Private Limited
3. Gagan Infraenergy Limited (formerly Gagan Sponge Iron Limited)
4. India Flysafe Aviation Limited
5. Jindal Coal Private Limited
6. Jindal Realty Private Limited
7. Jindal Rex Exploration Private Limited
8. Jindal Saw Limited
9. Jindal Stainless Limited
10. Jindal System Private Limited
11. Minerals Management Services (India) Private Limited [formerly Minerals
Management Services (India) Limited]
12. Nalwa Sons Investment Limited
13. Opelina Finance and Investment Limited
14. Trishakti Real Estate Private Limited
15. Uttam Vidyut Transmission Private Limited
16. Yno Finvest Private Limited
B. Transactions with Related Parties:
(Rs. in Crores)
Description A B C D E F
Purchase of Goods/
Services 284.31 191.76 - - 46.47 172.03
Sales of Goods (incl.
capital goods) 136.99 463.83 - - 446.77 475.56
Rendering of Services 8.23 2.67 - - 0.08 -
Sale of Investments 6.03 - - - - -
Investment in
Equity Shares 10.05 77.16 - - - -
Advance against share
Application money 36.71 12.30 - - - -
Rent and other
expenses Paid - - - - 0.04 0.07
Interest received/(paid) (17.79) (7.34) - - 25.58 -
Dividend received/(paid) 91.04 86.70 (0.17) (0.01) (13.06) (5.94)
Remuneration - - 76.27 35.05 - -
Lease rent received - - - - 5.40 5.40
Hire charges paid - - - - 21.72 -
Guarantees / Corporate
guarantees obtained/
(given) (1701.39) (71.75) - - (16.66) -
Inter-corporate
deposits given 325.57 398.35 - - 39.69 -
Inter-corporate
deposits taken 1746.02 1715.58 - - - -
Inter-corporate
deposits refunded 587.09 1675.95 - - - -
Outstanding Balance
at the year end:
Inter Corporate
Deposits Taken 1,198.56 39.63 - - - -
Advance from customer
& Others - 405.20 - - - -
Loans and Advances
(including Interest) 853.28 477.65 0.16 - 394.20 10.50
Advance against Share
Application money 38.98 12.30 - - - -
Debtors - Dr. Balance 0.58 (3.82) - - 36.56 29.92
Creditors - Dr. Balance 0.02 - - - 0.03 21.38
Cr. Balance 53.67 38.47 - - 1.64 0.07
A = Subsidiary, Step down Subsidiaries, Associates and Joint ventures -
Current Year
B = Subsidiary, Step down Subsidiaries, Associates and Joint ventures -
Previous Year
C = Key Management Personnel - Current Year
D = Key Management Personnel - Previous Year
E = Enterprises controlled by Key Management personnel and their
relatives - Current Year
F = Enterprises controlled by Key Management personnel and their
relatives - Previous Year
Note: The above transactions do not include 433,525,000 fully paid-up Bonus
Shares issued by Jindal Power Limited, a subsidiary company.
20. Earning per Share as required by Accounting Standard (AS-20) issued by
the Institute of Chartered Accountants of India:
(Rs. in Crores, except per share data)
Current Year Previous Year
Profit after Taxation 1479.68 1536.48
Profit attributable to ordinary shareholders 1479.68 1536.48
Number of Equity Shares (in nos.)
Issued and subscribed 930,727,664 154,508,732
Number of Potential Equity Shares (under
Employees' stock option scheme) 7,030,687 1,354,125
Total no. of shares including potential
equity shares 937,758,351 155,862,857
Basic earning per Share (Rs.) 15.90 99.44
Diluted earning per Share (Rs.) 15.78 98.58
21. Advances recoverable in cash or in kind or for value to be received
includes Rs. 0.16 Crores (Previous year Rs. Nil) being the amount due from
directors/officers of the Company. Maximum amount outstanding at any time
during the year was Rs. 0.48 Crores (Previous year Rs. 0.14 Crores).
22. Prior period adjustment (net) includes:
(Rs. in Crores)
Current Year Previous Year
Expenses relating to earlier years
- Miscellaneous Expenses 0.12 0.07
23. A. Auditors' Remuneration includes the following:
Current Year Previous Year
Payments towards
- Audit fee 0.30 0.20
- Tax Audit fee 0.02 0.02
- Out of Pocket expenses 0.04 0.01
0.36 0.23
Cost Auditors' Remuneration includes the following:
Current Year Previous Year
Payments towards
- Audit fee 0.01 0.01
- Out of Pocket expenses 0.00 0.00
0.01 0.01
Schedules
B. Managerial Remuneration:
1) Computation of Net profit in accordance with section 349 of the
Companies Act, 1956 for the purpose of managerial remuneration.
(Rs. in Crores)
Current Year Previous Year
Profit for the year before taxation as per
profit and loss account: 1,907.50 2,001.88
Add:
-Director's remuneration 76.28 35.05
-Miscellaneous Expenditure written off - 0.20
-Provision for doubtful debts and advances (0.18) (1.52)
-Loss on sale of Fixed Assets 2.49 0.16
-Loss on sale of Investments - -
Less:
- Profit on sale/discard of fixed assets 0.12 0.01
- Profit on sale of Investments 0.44 0.13
Net profit on which commission is payable 1,985.53 2,035.63
Share in Profits @ 2% of Net Profit
(Previous year @ 1% of Net Profit) 39.71 20.36
2) Director's Remuneration includes the following:
Current Year Previous Year
Remuneration paid to Directors including
the Managing Director and Whole time Directors
-Salary 12.54 13.06
- Share in Profits to Executive Vice Chairman
and Managing Director* 60.07 20.36
-Incentive to Vice Chairman and CEO 1.00 0.70
-Contribution to Provident Fund and Other funds 1.17 0.89
-Monetary value of perquisites** 1.50 0.04
*Additional 1% commission amounting to Rs. 20.36 Crores has been paid
relating to FY 2008-09 which has been approved in the Annual General
Meeting dated 29.09.2009
**Valuation as per the provisions of the Income Tax Act, 1961
24. Financial and Derivative Instruments:
a) Derivative contracts entered into by the Company and outstanding as on
31st March, 2010.
For hedging currency and interest rate related risks:
Nominal amounts of derivative contracts entered into by the Company and
outstanding is Rs. 2177.89 Crores (Previous year Rs. 2,250.11 Crores).
Category wise break-up is given below:
(Rs. in Crores)
Current Year Previous Year
Interest rate Swaps 568.17 804.3
(USD 125.86 Million) (USD 157.86 Million)
Options 148.96 290.42
(USD 33 Million) (USD 57 Million)
Forward Contracts 1,460.76 1,155.39
(USD 315.05 Million) (USD 226.77 Million)
b) The principal component of foreign currency loans/debts not hedged by
derivative instruments amount to Rs.1,569.51 Crores (Previous year
Rs.2,101.75 Crores) which in respective currencies is as under:
Current Year Previous Year
US Dollars 64.28 Million 81.83 Million
Japanese Yen 22,647.58 Million 31,196.34 Million
Euro 30.09 Million 9.88 Million
c) As a measure of prudence, the Company has decided not to recognise any
mark to market gains in respect of any outstanding derivative contracts.
25. Interest in Joint Ventures:
The Company's interest as a venturer, in jointly controlled entities
(Incorporated Joint Ventures) is as under:
Name Country of Percentage of ownership
Incorporation interest as at 31st
March, 2010
Shresht Mining And Metals Private
Limited India 50
Jindal Synfuels Limited (formerly
Jindal Coal to Liquid Limited) India 70
The Company's interests in the above Joint Ventures is reported as Long
Term Investment (Schedule 6) and stated at cost. However, the Company's
share of assets, liabilities, income and expenses, etc. (each without
elimination of the effect of transactions between the Company and the joint
ventures) related to its interest in the Joint Ventures are:
(Rs. in Crores)
As at As at
31 March, 2010 31 March, 2009
I. Assets
1. Fixed Assets - -
2. Current Assets, Loans and Advances
a) Cash and Bank Balances 0.12 -
II. Liabilities
1. Unsecured Loans 0.49 0.23
2. Current Liabilities 0.00 0.02
III. Miscellaneous Expenditure (To the extent
not written off or adjusted) 0.04 0.03
For the period ended For the period ended
31st March, 2010 31st March, 2009
IV. Income - -
V. Expenses
Administrative and Other expenses
(under pre-operative account) 0.48 0.24
26. Previous Year figures have been regrouped and/or rearranged wherever
considered necessary to facilitate comparison with Current Year figures.
27. Additional Information:
Pursuant to paragraphs 3 & 4 of Part II of Schedule VI to the Companies
Act, 1956
[A] Installed Capacity:
(monetary figures in Rs. Crores)
Sl. Particulars Unit Installed Capacity (Per Annum)
No.
Current Year Previous Year
At Raigarh
1 Sponge Iron M.T. 1,370,000 1,370,000
2 Mild Steel M.T. 2,400,000 2,400,000
3 Ferro Alloys M.T. 36,000 36,000
4 Power MW 353 358
5 Hot Metal/Pig Iron M.T. 1,500,000 1,500,000
6 Rail & Universal Beam Mill M.T. 750,000 750,000
7 Plate Mill M.T. 1,000,000 1,000,000
8 Fabricated Structures M.T. 45,000 -
At Raipur
9 Machinery and Castings M.T. 11,500 11,500
10 Ingots M.T. 30,000 30,000
11 CF Castings M.T. 3,000 3,000
At Barbil
12 Pelletization Plant M.T. 4,500,000 4,500,000
At Satara (Maharashtra)
13 Wind Energy MW 24 15
At Patratu
14 Wire Rod M.T. 600,000 -
Note: Installed capacity is as certified by the management.
[B] Raw Material Consumption:
Sl. Description Unit Current Year Previous Year
No. Quantity (MT) Amount Quantity (MT) Amount
(Rs. in (Rs. in
Crores) Crores)
1 Iron Ore M.T. 4,680,896 643.44 4,258,356 532.28
2 Coking Coal M.T. 1,021,581 1,000.83 979,923 979.69
3 Others 581.44 1,160.08
Grand Total 2,225.71 2,672.05
[C] Quantitative Information of Stock of Manufactured Finished Goods:
(Rs. in Crores)
Sl. Particulars Unit Opening Stock Opening Stock Closing Stock
No. As at As at As at
01.04.2008 01.04.2009 31.03.2010
Qty. Amt. Qty. Amt. Qty. Amt.
1 Sponge Iron M.T. 21,377 14.91 5,366 2.67 4,225 2.28
2 M.S.Round M.T. 6,838 12.15 3,406 6.93 6,005 11.42
3 H.C. Ferro Chrome M.T. 264 1.25 5,397 27.09 - -
4 Hot Metal/Pig Iron M.T. 28,916 35.07 3,448 5.01 2,795 3.90
5 Parallel Flange
Beam/Columns M.T. 68,292 141.84 32,703 84.68 61,592 150.04
6 Other Finished
Steel Products M.T. 21,248 43.06 28,695 72.82 15,309 36.01
7 Other Semi Steel
Products M.T. 54,510 93.10 96,901 195.41 59,807 112.15
8 Machineries M.T. 194 2.68 891 8.94 767 6.80
9 Universal Plate/Coil M.T. 61,468 140.08 50,629 153.94 60,963 141.87
10 Wire Rod M.T. - - - - 4,153 12.66
11 Fabricated
Structures M.T. - - 90 0.27 8,762 28.57
12 Iron Ore Pellets M.T. - - 450 0.06 87,978 12.65
13 Others 10.98 12.50 42.08
495.12 570.32 560.43
(D) Production:
Sl. Particulars Unit Current Year Previous Year
No. Quantity Quantity
1 Sponge Iron M.T. 1,309,408 1,248,511
2 M.S.Round M.T. 162,282 148,813
3 H.C. Ferro Chrome M.T. 540 16,143
4 Power Million KWH 2,942 2,831
5 Hot Metal / Pig Iron M.T. 1,508,502 1,262,261
6 Parallel Flange Beam/Columns M.T. 369,367 345,408
7 Universal Plate /Coil M.T. 736,600 558,040
8 Other Finished Steel Products M.T. 69,232 94,757
9 Other Semi Steel Products M.T. 1,801,750 1,429,977
10 Machineries M.T. 8,885 4,210
11 Wire Rod M.T. 4,804 -
12 Fabricated Structures M.T. 34,580 -
13 Iron Ore Pellets M.T. 226,818 -
14 Wind Energy Million KWH 34 -
(E) The Following Items Were Used For Internal/ Captive Consumption During
The Year:
Sl. Particulars Unit Current Year Previous Year
No. Quantity Quantity
1 Sponge Iron M.T. 967,180 878,925
2 M.S.Round M.T. 959 175
3 H.C. Ferro Chrome M.T. 2,069 1,156
4 Power Million KWH 1,954 1,818
5 Hot Metal / Pig Iron M.T. 1,263,961 1,007,282
6 Parallel Flange Beam/Columns M.T. 5,478 1,228
7 Other Semi Steel Products M.T. 1,414,204 1,056,028
8 Machineries M.T. - 519
9 Universal Plate /Coil M.T. 32,429 3,139
10 Other Finished Steel Products M.T. 1,575 1,124
(Rs. in Crores)
(F) Sales & Inter Divisional Transfer:
[a] Sales
Sl. Particulars Unit Current Year Previous Year
No. Quantity Amount Quantity Amount
I) Manufactured Finished Goods:
1 Sponge Iron M.T. 343,369 452.25 385,583 637.67
2 M.S. Round M.T. 158,724 423.91 152,069 551.34
3 H.C. Ferro Chrome M.T. 3,858 14.22 9,841 71.83
4 Power Million KWH 945 216.56 1,012 246.18
5 Pig Iron M.T. 245,193 474.13 280,419 701.77
6 Parallel Flange
Beam/Columns M.T. 334,804 1,142.30 379,770 1,666.74
7 Universal Plate/ Coil M.T. 693,526 2,177.07 565,740 2,188.05
8 Other Finished
Steel Products M.T. 81,041 284.89 86,185 360.41
9 Other Semi Steel
Products M.T. 422,276 1,063.41 331,516 1,071.90
10 Machineries M.T. 8,274 103.05 149.322 26.18
11 Iron Ore/ Iron
Ore Fines M.T. 1,572,941 537.59 1,325,328 524.28
12 Wire Rod M.T. 121 0.37 - -
13 Fabricated Structures M.T. 25,909 98.24 - -
14 Iron Ore Pellets M.T. 11,893 7.15 - -
15 Wind Energy Million KWH 33 11.56 - -
16 Others 721.78 376.19
TOTAL 7728.48 8422.54
II) Traded Goods
1 Power Million KWH 607 159.07 112 28.26
TOTAL 159.07 28.26
TOTAL SALES 7887.55 8450.80
[b] Inter Divisional Transfers:
Sl. Particulars Unit Current Year Previous Year
No. Quantity Amount Quantity Amount
1 Sponge Iron M.T. - - 15 0.02
2 H.C. Ferro Crome M.T. 10 0.04 12 0.09
3 Power Million KWH 42 5.81 - -
4 Pig Iron M.T. - - 28 0.08
5 Parallel Flange Beam/
Columns M.T. 197 0.37 - -
6 Universal Plate/ Coil M.T. 311 0.60 - -
7 Iron Ore M.T. 5,803,406 439.72 4,914,841 276.13
8 Coal & Job Charges M.T. 4,412,975 197.15 4,333,470 205.45
9 Other Finished Steel
Products M.T. 2 0.00 - -
10 Other Semi Steel
Products M.T. 2,363 6.35 42 0.50
11 Machineries M.T. 736 17.63 2,845 33.68
12 Iron Ore Pellets M.T. 127,397 25.34 - -
13 Others 7.08 4.01
TOTAL 700.09 519.96
(Rs. in Crores)
[c] Other Operations
Current Year Previous Year
Job Charges 0.07 0.06
Export Benefits Received 7.96 6.67
8.03 6.73
TOTAL OF [a]+[b]+[c] 8,595.67 8,977.49
(G) Sales Includes Goods Issued For Projects/ Captive (During Trial Run
Period) Consumption as Detailed Below:
Sl. No. Particulars Unit Current Year Previous Year
Quantity Amount Quantity Amount
1 Parallel Flange Beam/Columns M.T. 29,591 68.57 7,996 17.09
2 Plate & Coil M.T. 60,097 132.08 14,561 33.04
3 Other Semi Steel Products
(Trial Period) M.T. 530 1.59
4 Other Finished
Steel Products M.T. 7,339 14.61 1,312 2.61
5 Other Semi Steel Products M.T. 3,743 9.26 45 0.05
6 Fabricated Structures M.T. 14,652 43.85 - -
7 Machineries M.T. 1,375 5.71 519 3.33
8 Others 186.61 - -
TOTAL 462.28 56.12
(H) C.I.F. Value of Imports:
Sl. Particulars Current Year Previous Year
No. Amount Amount
1 Raw Material & Fuel 1,112.94 913.21
2 Components & Spare Parts 199.81 87.92
3 Capital Goods and Others 1,813.24 618.66
TOTAL 3,125.99 1,619.79
(I) Break up of Consumption of Raw Materials and Stores & Spares Into
Imported & Indigenous :
Sl. Particulars Current Year Previous Year
No. Amount % Amount %
[a] Raw Material
i) Imported (includes purchased 1,029.02 46.23 854.46 31.98
through canalising agencies,
High Sea Sales and Others)
ii) Indigenous 1,196.69 53.77 1,817.59 68.02
2,225.71 100.00 2,672.05 100.00
[b] Stores And Spares
i) Imported (includes purchased
through canalising agencies,
High Sea Sales and Others) 197.52 24.26 91.10 11.10
ii) Indigenous 616.58 75.74 729.37 88.90
814.10 100.00 820.47 100.00
[c] Coke And Coal
i) Imported (includes purchased 173.10 77.90 139.71 55.67
through canalising agencies,
High Sea Sales and Others)
ii) Indigenous 49.12 22.10 111.26 44.33
222.22 100.00 250.97 100.00
(J) Expenditure In Foreign Currency (As Remitted):
Sl. Particulars Current Year Previous Year
No. Amount Amount
1 Travelling 0.97 4.82
2 Interest and Arrangement charges - 82.03
3 Dividend 0.03 3.01
4 Technical Knowhow fees 18.89 -
5 Others 1.50 28.98
21.39 118.84
(K) Earnings In Foreign Currency:
Sl. Particulars Current Year Previous Year
No. Amount Amount
1 FOB Value of Export Sales 410.41 1021.37
2 Others - -
410.41 1,021.37
In terms of our report of even date For & on behalf of the Board
For S.S. Kothari Mehta & Co. Naveen Jindal
Chartered Accountants Executive Vice Chairman
& Managing Director
J. Krishnan
Partner Anand Goel
Membership No. 84551 Joint Managing Director
Sushil K. Maroo
Director
Place : New Delhi T.K. Sadhu
Date : 4th May, 2010 Company Secretary
|