Mar 31, 2023
The Board of Directors are pleased to present the Company''s 44th Annual Report and the Company''s audited financial statements (Standalone & Consolidated) for the Financial Year ended March 31, 2023.
FINANCIAL RESULTS
The Company''s financial results for the year ended March 31, 2023, are summarized below:
(''in Crore) |
||||
Standalone |
Consolidated |
|||
2022-23 |
2021-22 | |
2022-23 |
2021-22 |
|
Total Income |
51,228.99 |
49,533.46 |
52,768.23 |
51,135.92 |
IBIIDA |
9,533.14 |
15,036.73 |
9,9)4.89 |
15,5 15.44 |
Depreciation & Amortisation Expenses |
2,165.94 |
2,232.16 |
2,690.95 |
2,096.78 |
Finance Costs (Net) |
1,285.78 |
1,414.79 |
1,445.89 |
1,887.71 |
Other Income |
48.91 |
102.01 |
57.05 |
50.36 |
Profit / (loss) before tax, exceptional items and associate profit/loss from continuing operations |
6130.33 |
11491.79 |
5855.10 |
11579.31 |
Share in loss of associates (Net of Tax) |
0.15 |
0.23 |
||
Exceptional Items(Net) |
3258.26 |
323.71 |
1369.46 |
406.24 |
Profit/ (Loss) before tax after exceptional items and associate profit/loss from continuing operations |
2,872.07 |
11,168.08 |
4,485.49 |
11,172.84 |
1 ess: Provision of tax |
445.24 |
2,884.66 |
1,292.28 |
2,924.53 |
Profit/ (Loss) after tax and associate profit/loss |
2,426.83 |
8,283.42 |
3193.21 |
8,248.31 |
Profit/ (Loss) before tax after exceptional Items from discontinued operations |
981.68 |
(255.65) |
||
Less: Provision of tax |
200.80 |
1,226.93 |
||
Profit/ (Loss) after tax from discontinued operations |
780.88 |
(1,482.58) |
KEY DEVELOPMENTS
Divestment of stake in Jindal Power Limited, a subsidiary company
On May 30, 2022, the Company concluded the divestment of its entire 96.42% stake in equity capital and preference investment in Jindal Power Limited.
DIVIDEND
The Board of Directors of your Company is pleased to recommend a Final Dividend of ''2/- per equity share of face value ''1/- each for the financial year ended March 31, 2023.
The Company has framed Dividend Distribution Policy in accordance with Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 ("Listing Regulations"). The Policy may be accessed on the website of the Company at: www.jindalsteelpower.com
The objective of this policy is to establish the parameters to be considered by the Board of Directors of your Company before declaring or recommending dividend.
TRANSFER TO RESERVES
The Company has not transferred any amount to reserves for the financial year ended March 31, 2023.
DEPOSITS
The Company has not accepted/received any deposits during the year under report, falling within the ambit of Section 73 of the Companies Act, 2013 (the act) and the Companies (Acceptance of Deposits) Rules, 2014.
MATERIAL CHANGES AND COMMITMENTS AFFECTING FINANCIAL POSITION AND CHANGE IN BUSINESS
There have been no material change(s) and commitment(s), except elsewhere stated in this report, affecting the financial position of the Company between the end of the financial year of the Company i.e., March 31, 2023, and the date of this Report.
There has been no change in the nature of business of the Company during the financial year ended on March 31, 2023.
Notwithstanding massive disruption caused by the Russia-Ukraine Crisis in late FY''22, the Company''s wide product profile and geographical diversification stood the Company in good stead. For the full year, standalone production (incl. pig iron) decreased by 1% Y-o-Y (7.89 MT vs. 8.01 MT in FY'' 22) ,however, standalone Steel (incl. pig iron) sales reached the highest ever level of 7.68 MT (up 1% Y-o-Y). Despite turbulent export markets, Company''s sales efforts resulted in export volumes at 1 MT. Exports share declined to 13% in FY''23 compared to 33% in FY''22 owing to export duty imposed on Steel & Iron Ore by Government of India during May''22 to Nov''22.
Improved steel realisations and higher sales resulted in Gross revenues rising by 8% Y-o-Y to ''59,470 crore. Standalone EBITDA decreased by 37% Y-o-Y to ''9,533 on account of increase in Raw Material prices, primarily coking coal. Company''s net profit landed at ''2,427 crore in FY'' 23.
The Pellet production of 7.57 MT in FY'' 23 fell 2% Y-o-Y. Higher captive consumption and export duty imposition resulted in 69% fall in pellet external sales (0.23 MT vs. 0.75 MT in FY''22).
Your Company''s domestic credit ratings, as on March 31, 2023, are as follows:
Rating Agencies |
Long - term debt facilities |
Short-term debt facilities |
Credit Analysis & Research Ltd. ("CARE") |
AA(-), Positive Outlook |
A1( ) |
ICRA Limited |
AA(-), Positive Outlook |
A1( ) |
India Ratings & Research |
- |
A1( ) |
During FY''23, Credit Ratings of the Company were revised from AA(-), Stable/A1( ) to AA(-), Positive /A1( ) for Long Term/Short Term debt facilities of JSP by CARE & ICRA both and India Ratings & Research assigned the credit Rating of A1( ) for short term debt facilities during the year.
CONSOLIDATED FINANCIAL STATEMENTS
In accordance with the provisions of the Companies Act, 2013 ("the Act"), the Listing Regulations and Ind AS, the audited consolidated financial statements are provided in the Annual Report.
The Company''s Authorised Share capital during the financial year ended March 31, 2023, remained at ''3,00,00,00,000/- (Rupees Three Hundred crore only) consisting of 2,00,00,00,000 (Two Hundred crore) equity shares of ''1/- (Rupee One only) each and 1,00,00,000 (One crore) Preference Shares of ''100/- (Rupees One Hundred only) each.
The Company''s paid-up equity share capital remained at ''1,02,00,88,097/- (Rupees One Hundred Two crore Eighty-Eight Thousand and Ninety Seven only) comprising of 1,02,00,88,097 (One Hundred Two crore Eighty Eight Thousand and Ninety Seven) equity shares of ''1/- (Rupee One only) whereas the paid-up preference share capital of the Company for the financial year ending March 31, 2023, was Nil.
EMPLOYEE STOCK OPTION SCHEME/ EMPLOYEE SHARE PURCHASE SCHEME
In order to motivate, incentivize and reward employees, your Company instituted Employee Share Purchase Schemes namely JSPL ESPS-2013, JSPL ESPS-2018 and Employee Stock Option Scheme namely JSPL ESOP Scheme-2017 and Jindal Steel & Power Employee Benefit Scheme-2022.
The Nomination and Remuneration Committee ("NRC") monitors the implementation of JSPL ESPS-2013, JSPL ESPS-2018 and Employee Stock Option Scheme namely JSPL ESOP Scheme-2017 and Jindal Steel & Power Employee Benefit Scheme-2022, which are in compliance with the Securities and Exchange Board of India (Share Based Employee Benefits and Sweat Equity) Regulations, 2021 ("SEBI SBEB Regulations").
Relevant disclosures pursuant to SEBI SBEB Regulations, as on March 31, 2023, are available on the website of the Company at www.jindalsteelpower.com
Certificate from M/s RSMV & Co., Company Secretaries, New Delhi (CP No. 11571), Secretarial Auditors, with respect to the implementation of JSPL ESPS-2013, JSPL ESPS-2018 and Employee Stock Option Scheme namely JSPL ESOP Scheme-2017 and Jindal Steel & Power Employee Benefit Scheme-2022 and will be available on the website of the Company at wwwjindalsteelpower.com.
There were no outstanding Non-Convertible Debentures as on March 31, 2023.
In terms of Section 188 of the Act read with rules framed thereunder and Regulation 23 of the Listing Regulations, your Company has in place Related Party Transactions Policy dealing with related party transactions. The policy may be accessed at: www.jindalsteelpower. com
During the year under review, all related party transactions entered into by the Company, were approved by the Audit Committee and were at arm''s length and in the ordinary course of business. Prior omnibus approval is obtained for related party transactions which are of repetitive nature and entered in the ordinary course of business and on an arm''s length basis.
The Company did not have any contracts or arrangements with related parties in terms of Section 188(1) of the Companies Act, 2013. Accordingly, the disclosure of related party transactions as required under Section 134(3)(h) of the Act in Form AOC-2 is not applicable to the Company for FY 2022-23 and hence does not form part of this report.
Details of related party transactions entered into by the Company, in terms of Ind AS-24 and Listing Regulations have been disclosed in the notes to the standalone/consolidated financial statements forming part of this Integrated Annual Report.
PARTICULARS OF LOANS, GUARANTEES, SECURITIES AND INVESTMENTS
The particulars of loans, guarantees, securities and investments, covered under the provisions of Section 186 of the Companies Act 2013, are furnished in the financial statements.
SUBSIDIARIES, ASSOCIATE AND JOINT VENTURE COMPANIES
A separate statement containing performance and highlights of Financial Statements of subsidiary, associate and joint venture companies is provided in the prescribed form AOC-1, attached to the Consolidated Financial Statements and forms part of this report.
The names of companies which have become or ceased to be subsidiary or joint venture or associate companies, if any, during FY'' 23 have been mentioned in the notes to the accounts.
The financial statements of subsidiary companies are kept open for inspection by the shareholders at the registered office of the Company during business hours on all days except on Saturdays, Sundays and on public holidays upto the date of the Annual General Meeting ("AGM") as required under Section 136 of the Act. Any member desirous of obtaining a copy of the said financial statements may write to the Company at its Registered Office or Corporate Office.
The audited financial statements including the consolidated financial statements and all other documents required to be attached thereto and financial statements of each of the subsidiaries have been uploaded on the website of your Company at www.jindalsteelpower.com.
Your Company has framed a policy for determining "Material Subsidiary" in terms of Regulation 16(c) of Listing Regulations. The policy may be accessed on the website of the Company at: www.jindalsteelpower.com
Key Managerial Personnel:
In terms of Section 203 of the Act, Mr. Ramkumar Ramaswamy has been appointed as the Chief Financial Officer of the Company, effective from May 21, 2022.
BOARD EVALUATION
The Board carried out an annual performance evaluation of its own performance, the performance of the Directors individually as well as the evaluation of the various Committees of the Board. Details of the same are given in the Corporate Governance Report which forms part of this report.
DECLARATION BY INDEPENDENT DIRECTORS
The Company has received declarations from each of the Independent Directors that they, respectively, meet the criteria of independence prescribed under Section 149 read with Schedule IV of the Act and rules made thereunder, as well as Regulations 16 and 25(8) of the Listing Regulations. Based on the declarations received, the Board considered the independence of each of the Independent Directors in terms of above provisions and is of the view that they fulfil the criteria of independence and are independent from the management.
In the opinion of the Board, there has been no change in the circumstances which may affect their status as Independent Directors of the Company and the Board is satisfied of the integrity, expertise, and experience (including proficiency in terms of Section 150(1) of the Act and applicable rules thereunder) of all Independent Directors on the Board. Further, in terms of Section 150 read with Rule 6 of the Companies (Appointment and Qualification of Directors) Rules, 2014, as amended, Independent Directors of the Company have included their names in the data bank of Independent Directors maintained with the Indian Institute of Corporate Affairs and will undergo the online proficiency self-assessment test within the specified timeline, unless exempted under the aforesaid Rules.
MEETINGS OF THE BOARD AND COMMITTEES
The Board of Directors met 8 (Eight) times during the period under review. The details of number of meetings of the Board and various Committees of the Board of your Company are set out in the Corporate Governance Report, which forms part of this report.
SECRETARIAL STANDARDS
The Directors state that applicable secretarial standards i.e., SS-1 and SS-2, relating to meetings of the Board of the Directors and General Meetings have been duly followed by the Company.
REMUNERATION POLICY
In accordance with the provisions of Section 178 of the Act and Part D of Schedule II of the Listing Regulations, the policy on Nomination and Remuneration of Directors, KMPs and Senior Management of your Company is uploaded on the website of the Company and may be accessed at: www.jindalsteelpower.com. During the year under review, there has been no change to the Policy.
PARTICULARS OF EMPLOYEES AND RELATED DISCLOSURES
In terms of the provisions of Section 197(12) of the Act read with Rule 5 of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, as amended, a statement showing the names and other particulars of the employees drawing remuneration in excess
DIRECTORS AND KEY MANAGERIAL PERSONNEL Directors:
The Board of Directors appointed Mr. Ramkumar Ramaswamy and Mr. Sunil Agrawal as Additional Directors, with effect from July 15, 2022, to hold the office upto the AGM of the Company. Subject to the approval of shareholders of the Company, Mr. Ramkumar Ramaswamy and Mr. Sunil Kumar Agrawal were also appointed as Whole-time Directors of the Company for a period of 3 years with effect from July 15, 2022.
Mrs. Shallu Jindal, Non-Executive Director decided to step-down from the Board with effect from July 16, 2022 and Mr. Anil Wadhwa, Independent Director completed his term on the Board and ceased to be Independent Director with effect from July 29, 2022.
Mr. V.R. Sharma completed his three-year term as Managing Director on August 13, 2022 and ceased to be director w.e.f the said date.
The Board approved the appointment of Mr. Bimlendra Jha as an Additional Director with effect from August 14, 2022, to hold the office upto AGM of the Company, subject to the approval of shareholders of the Company. Mr. Bimlendra Jha was appointed as Managing Director for a period of 5 years w.e.f. August 14, 2022.
The Board of Directors appointed Mr. Rohit Kumar as an Additional Director in the category of Independent Director with effect from September 20, 2022, to hold the office up to the AGM of the Company.
Subsequently, the Shareholders of the Company in the AGM held on September 30, 2022, approved the appointments of, Mr. Ramkumar Ramaswamy and Mr. Sunil Agrawal as Directors and Wholetime Directors for a term of 3 years with effect from July 15, 2022, Mr. Bimlendra Jha as Director and Managing Director with effect from August 14, 2022, for a term of 5 years and Mr. Rohit Kumar, as Independent Director for a term of consecutive 5 years with effect from September 20, 2022.
The Board approved the appointments of Mr. Damodar Mittal and Mr. Sabyasachi Bandyopadhyay as Additional Directors with effect from March 28, 2023, to hold the office upto AGM of the Company, subject to the approval of shareholders of the Company. Mr. Damodar Mittal and Mr. Sabyasachi Bandyopadhyay were also appointed as Wholetime Directors of the Company for a period of 3 years with effect from March 28, 2023.
Mr. Dinesh Kumar Saraogi and Mr. Sunil Agrawal stepped down from the position of Wholetime Directors of the Company with effect from March 29, 2023.
The Board of Directors places on record their deep appreciation for the contributions and guidance provided by the outgoing directors during their respective tenures on the Board.
In accordance with the provisions of Section 152 of the Act and in terms of the Articles of Association of the Company, Mr. Naveen Jindal and Mr. Ramkumar Ramaswamy, Directors of the Company are retiring by rotation at the ensuing AGM of the Company and are eligible for re-appointment. Your Board recommends the re-appointment of Mr. Naveen Jindal and Mr. Ramkumar Ramaswamy, as Directors of the Company.
The particulars in respect of Mr. Naveen Jindal and Mr. Ramkumar Ramaswamy as required under Regulation 36(3) of Listing Regulations and SS-2, are mentioned in the Notice of AGM.
of the limits set out in the said rules and the disclosures relating to remuneration and other details, is annexed as Annexure - A to this report.
M/s Lodha & Co., Chartered Accountants (ICAI Firm Registration No. 301051E), New Delhi, were appointed as the Statutory Auditors for a period of 5 years from the conclusion of 42nd AGM till the conclusion of 47th AGM of the Company.
The Statutory Auditors have confirmed that they are not disqualified from continuing as the auditors of the Company.
The Statutory Auditors have issued an unmodified opinion on the Company''s Financial Statements for the financial year ended March 31, 2023.
There are no instances of any fraud reported by the Statutory Auditors to the Audit Committee or the Board pursuant to section 143(12) of the Act.
M/s RSMV & Co., Company Secretaries, New Delhi (CP No. 11571) were appointed to conduct the Secretarial Audit of the Company for the financial year 2022-23.
Secretarial Audit Report issued by M/s. RSMV & Co., Company Secretaries, New Delhi of the Company is annexed herewith as Annexure - B to this Report.
In terms of sub-section (1) of Section 148 of the Act read with Companies (Cost Records and Audit) Rules, 2014, as amended from time to time, the Company is required to maintain the cost records. Accordingly, such accounts and records have been maintained by the Company.
M/s Ramanath Iyer & Co., (FRN 000019), Cost Accountants, were appointed as the Cost Auditors of the Company for auditing the cost records of the Company for the financial year 2023-24, subject to ratification of their remuneration by the Shareholders of the Company in the 44th AGM of the Company. Accordingly, an appropriate resolution seeking ratification of the remuneration for the financial year 2023-24 of M/s Ramanath Iyer & Co., Cost Auditors, is included in the Notice convening the 44th AGM of the Company.
The Company has in place a robust risk management framework which identifies and evaluates business risks and opportunities. The Company recognises that the applicable risks need to be managed and mitigated to protect the interest of the shareholders and stakeholders, to achieve business objectives and enable sustainable growth. The risk management framework is aimed at effectively mitigating the Company''s various business and operational risks, through strategic and tactical actions. Risk management is embedded in our critical business activities, functions and processes. The risks are reviewed for the change in the nature and extent of the major risks identified since the last assessment. It also provides control measures for risks and future action plans.
The Company has in place adequate internal financial controls with reference to financial statements and such internal financial controls are operating effectively. Your Company has adopted policies and procedures for ensuring the orderly and efficient conduct of its business, including adherence to the Company''s policies, safeguarding of its assets, prevention and detection of frauds and errors, accuracy and completeness of the accounting records, and timely preparation of reliable financial disclosures.
CORPORATE SOCIAL RESPONSIBILITY
The Company strongly believes that sustainable community development is essential for harmony between the community and the industry. The Company endeavours to make a positive contribution especially to the underprivileged communities by supporting a wide range of socio-economic, educational and health initiatives.
The Health, Safety, CSR, Sustainability and Environment Committee ("HSCSE Committee") of the Board of Directors of the Company oversees the implementation of CSR Policy of the Company.
In line with the provisions of the Act and on the recommendations of the HSCSE Committee, the Board of Directors has approved the CSR Policy of the Company. Detailed CSR Policy of the Company has been uploaded on the website of the Company at www.jindalsteelpower. com.
The Annual Report on the CSR activities for the financial year 2022-23 is annexed herewith as Annexure - C to this report.
SIGNIFICANT AND MATERIAL ORDERS PASSED BY THE REGULATORS OR COURTS
No significant material order(s) were passed by the regulators/ courts which would impact the going concern status of the Company and its future operations during the year under review.
DIRECTORS'' RESPONSIBILITY STATEMENT
Pursuant to Section 134(3) (c) of the Act, your Directors state that:
(a) in the preparation of the annual accounts for the year ended March 31, 2023, the applicable accounting standards and Schedule III to the Act, have been followed and there are no material departures from the same;
(b) the Directors have selected such accounting policies and applied them consistently and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of your Company as at March 31, 2023 and of the profit of the Company for the year ended on that date;
(c) the Directors have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities;
(d) The Directors have prepared the annual accounts on a going concern basis;
(e) The Directors have laid down internal financial controls to be followed by the Company and that such internal financial controls are adequate and are operating effectively; and
(f) The Directors have devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems are adequate and operating effectively.
OTHER DISCLOSURES / REPORTINGBusiness Responsibility and Sustainability Report
As stipulated under Listing Regulations, a separate section titled "Business Responsibility and Sustainability Report" forms part of this Annual Report which offers more detailed information on your Company''s actions and initiatives related to environmental, social, and governance matters.
MANAGEMENT DISCUSSION AND ANALYSIS REPORT
As stipulated under Listing Regulations, a separate section titled "Management Discussion and Analysis Report", forms part of this Annual Report.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS AND OUTGO
The particulars related to conservation of energy, technology absorption and foreign exchange earnings and outgo as required to be disclosed under Section 134(3) (m) of the Act read with Rule 8 of the Companies (Accounts) Rules, 2014, is annexed herewith as Annexure - D to this Report.
In accordance with the provisions of Sections 92 and 134(3)(a) of the Act read with the Companies (Management and Administration) Rules, 2014, the Annual Return in e-form MGT-7 for the financial year ended March 31, 2023 has been uploaded on the website of the Company i.e. www.jindalsteelpower.com.
Your Company is committed to achieve the highest standards of Corporate Governance and adhere to the Corporate Governance requirements set out by the Securities and Exchange Board of India. Your Company has also implemented several best Corporate Governance practices as prevalent globally.
The report on Corporate Governance as stipulated under the listing regulations for the Financial Year 2022-23 and a certificate issued by M/s Navneet K. Arora & Co. LLP, Company Secretaries in Practice confirming compliance with the conditions of Corporate Governance is annexed herewith as Annexure - E to this report.
WHISTLE BLOWER POLICY/VIGIL MECHANISM
Your Company has formulated a robust vigil mechanism to deal with instances of unethical behaviour, actual or suspected fraud or violation of Company''s code of conduct or ethics policy. The details of policy are explained in the Corporate Governance Report and also uploaded on website of the Company at: www.jindalsteelpower.com
PREVENTION OF SEXUAL HARASSMENT AT WORKPLACE
As per the requirement of the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 and the Rules made thereunder, your Company has constituted an Internal Complaints Committee having designated independent member(s) to redress complaints regarding sexual harassment. For details of the complaints received etc. during the period under review please refer the Corporate Governance Report (Annexure -E).
DISCLOSURE UNDER THE INSOLVENCY AND BANKRUPTCY CODE, 2016
There was no application made by the Company initiating insolvency proceedings against any other entity nor are any proceedings pending against the Company under the Insolvency and Bankruptcy Code, 2016 (31 of 2016) during the year under review.
DIFFERENCE IN VALUATION IN THE CASE OF ONE TIME SETTLEMENT OF LOAN FROM BANK OR FINANCIAL INSTITUTION
There was no one time settlement of loan from banks or financial institutions by the Company during the year under review. Accordingly, there are no details regarding difference between amount of the valuation done at the time of one time settlement and the valuation done while taking loan from the Banks or Financial Institutions.
Statements in the Board''s Report and the Management Discussion & Analysis describing the Company''s objectives, expectations or forecasts may be forward looking within the meaning of applicable Securities Laws and Regulations. Actual results may differ materially from those expressed in the statement. Important factors that could influence the Company''s operations include global and domestic demand and supply conditions affecting selling prices of finished goods, input availability and prices, changes in Government Regulations, Tax Laws, Economic Developments within the country and other factors such as litigation and industrial relations.
The Directors wish to place on record their appreciation for the sincere services rendered by Company''s staff and workers at all levels. Your Directors also wish to place on record their appreciation for the valuable co-operation and support received from the Government of India, various State Governments, the Banks/ Financial Institutions and other stakeholders such as shareholders, customers and suppliers, among others. The Directors also commend the continuing commitment and dedication of the employees at all levels, which has been critical for the Company''s success. The Directors look forward to their continued support in future.
For & on behalf of the Board of Directors Naveen Jindal
Place : New Delhi Chairman
Date : May 16, 2023 DIN : 00001523
Mar 31, 2022
The Board of Directors are pleased to present the Company''s 43rd Annual Report and the Company''s audited financial statements (standalone and consolidated) for the Financial Year ended March 31, 2022.
The Company''s financial results for the year ended March 31, 2022, are summarized below:
(? in Crore) |
||||
Standalone |
Consolidated |
|||
2021-22 |
2020-21 |
2021-22 |
2020-21* |
|
lot.il Income |
49.vii.46 |
;;.9/;.94 |
51,135.92 |
35,072.55 |
IBIIDA |
15.056./; |
13,054.91 |
15,513.44 |
13,091.25 |
Depreciation & Amortisation Expenses |
2,2 52.16 |
//4!.45 |
2,096.78 |
2,414.13 |
Finance Costs (Net) |
1,414.79 |
2,186.54 |
1,887.71 |
2,753.34 |
Profit/ (Loss) before tax after exceptional Items from continuing |
11,168.09 |
9,119.22 |
11,173.07 |
8,251.88 |
operations |
||||
1 ess: Provision of tax |
2,884.66 |
1,964.91 |
2,924.53 |
1,810.81 |
Profit/ (Loss) after tax |
8,283.42 |
7,154.31 |
8,248.54 |
6,441.07 |
Profit/ (Loss) before tax after exceptional Items from discontinued |
(255.65) |
(2,172.84) |
||
operations |
||||
1 ess: Provision ol tax |
1,226.93 |
1.19 |
||
Profit/ (Loss) after tax from discontinued operations |
(1,482.58) |
(2,174.03) |
||
*Please refer note no. 53 (A) to the consolidated financial statement for the year ended March 31, 2022. |
The Pellet production of 7.76 MT in FY'' 22 was broadly in line with prior year. However, higher crude steel production resulted in two-third fall in external sales (0.75 MT vs. 2.25 MT in FY''21).
DIVIDEND AND RESERVES
The Board of Directors of your Company is pleased to recommend a Final Dividend of H2 per Equity Share of face value HI/- each for the financial year ended March 31, 2022.
Apart from the above, the Board of Directors in its meeting held on March 10, 2022 had also approved the payment of Interim Dividend of H1/- per Equity Share of face value H1/- each for the financial year ended March 31, 2022.
The Company has framed Dividend Distribution Policy in accordance with Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations,2015 ("Listing Regulations"). The Policy may be accessed on the website of the Company at: https://www.jindalsteelpower.com/policies.html.
The objective of this policy is to establish the parameters to be considered by the Board of Directors of your Company before declaring or recommending dividend.
There was no transfer to reserves during the year.
MATERIAL CHANGES AND COMMITMENTS AFFECTING FINANCIAL POSITION AND CHANGE IN BUSINESS
There have been no material change(s) and commitment(s), except elsewhere stated in this report, affecting the financial position of the Company between the end of the financial year of the Company i.e. March 31, 2022 and the date of this Report.
There has been no change in the nature of business of the Company during the financial year ended on March 31, 2022.
Notwithstanding massive disruption caused by the pandemic in early FY'' 22, unfavourable weather and several logistical challenges, the Company''s wide product profile and geographical diversification stood the Company in good stead. For the full year, standalone production (incl. pig iron) increased by 7% Y-o-Y to hit a record for the fifth consecutive year (8.01 MT vs. 7.51 MT in FY'' 21). Standalone Steel (incl. pig iron) sales also reached the highest ever level of 7.64 MT (up 5% YoY). Buoyant export markets continued to support Company sales efforts with volumes maintained at 2.5 MT. Exports share declined marginally to 33% in FY'' 22 compared to 35% in FY''21.
Improved steel realisations and higher sales resulted in Gross revenues rising by 49% Y-o-Y to H55,264 Crores. Standalone EBITDA increased by 15% Y-o-Y to a record H15,037 crores. EBITDA growth is noteworthy as the year saw a steep increase in coking coal prices and limited benefit accruing due to low cost iron ore inventory as compared to FY'' 21. Record operating profit and declining interest expense contributed in the Company net profit reaching the highest ever level of H8,283 Crores in FY'' 22.
During the FY''22, Credit Ratings of the Company were revised from A(-), Stable/A2( ) to AA(-), Stable /A1( ) by CARE Rating, BBB( ), Stable /A2 to AA(-), Stable /A1( ) by ICRA and Crisil Rating Limited has withdrawn its credit rating during the year.
CONSOLIDATED FINANCIAL STATEMENTS
In accordance with the provisions of the Companies Act, 2013 ("the Act"), the Listing Regulations and Ind AS, the audited consolidated financial statements are provided in the Annual Report.
SHARE CAPITAL
During the FY''22, there was no change in the Authorised Share Capital of the Company. As at March 31, 2022, the Authorised Share Capital of the Company was H300,00,00,000/- (Rupees Three Hundred Crore only) divided into 200,00,00,000 (Two Hundred Crore) equity shares of HI/- (Rupee One only) each and 1,00,00,000 (One Crore) Preference Shares of H100/- (Rupees One Hundred only) each. The Paid-up Share Capital of the Company was increased from HI ,02,00,15,971/- (Rupees One Hundred Two Crore Fifteen Thousand Nine Hundred and Seventy one only) comprising of 1,02,00,15,971 (One Hundred Two Crore Fifteen Thousand Nine Hundred and Seventy one) equity shares of HI/- (Rupee One only) to H 1,02,00,88,097/- (Rupees One Hundred Two Crore Eighty Eight Thousand and Ninety Seven only) comprising of 1,02,00,88,097 (One Hundred Two Crore Eighty Eight Thousand and Ninety Seven) equity shares of H1/- (Rupee One only).
EMPLOYEE STOCK OPTION SCHEME/ EMPLOYEE SHARE PURCHASE SCHEME
In order to motivate, incentivise and reward employees, your Company instituted Employee Share Purchase Schemes namely JSPL ESPS-2013, JSPL ESPS-2018 and Employee Stock Option Schemes namely JSPL ESOP Scheme-2017 and Jindal Steel & Power Employee Benefit Scheme-2022.
The Nomination and Remuneration Committee ("NRC") monitors the implementation of JSPL ESPS-2013, JSPL ESPS-2018, JSPL ESOP Scheme-2017 and Jindal Steel & Power Employee Benefit Scheme-2022. JSPL ESPS-2013, JSPL ESPS-2018, JSPL ESOP Scheme-2017 and Jindal Steel & Power Employee Benefit Scheme-2022 are in compliance with the Securities and Exchange Board of India (Share Based Employee Benefits and Sweat Equity) Regulations, 2021 ("SEBI SBEB Regulations").
Relevant disclosures pursuant to SEBI SBEB Regulations, as on March 31, 2022, are available on the website of the Company at www.jindalsteelpower.com
Certificate from M/s RSMV & Co., Company Secretaries, New Delhi (CP No. 11571), Secretarial Auditors, with respect to the implementation of JSP ESPS-2013, JSP ESPS-2018, JSP ESOP Scheme-2017 and Jindal Steel & Power Employee Benefit Scheme-2022 will be available on the website of the Company at www.iindalsteelpower.com.
Your Company''s domestic credit ratings, as on March 31, 2022, are as follows:
Rating Agencies |
Long-term debt/ facilities/NCD |
Short term debt/ facilities |
Credit Analysis & Research Ltd ("CARE Ratings") |
AA(-) |
A1 |
ICRA Limited |
AA(-) |
A1 |
During the FY''22, your Company has redeemed Non-Convertible Debentures ("NCDs") amounting to H12.40 Crore. There were no outstanding NCDs as on March 31, 2022.
The Company has not accepted/received any deposits during the year under report, falling within the ambit of Section 73 of the Act and the Companies (Acceptance of Deposits) Rules, 2014.
In terms of Section 188 of the Act read with rules framed thereunder and Regulation 23 of the Listing Regulations, your Company has in place Related Party Transactions Policy for dealing with related party transactions. The policy may be accessed at: https://www.jindalsteelpower.com/policies.html
All the related party transactions that were entered and executed during the year under review were on arm''s length basis and in the ordinary course of business and within permissible framework of Section 188 of the Act and Rules made thereunder, read with Regulation 23 of Listing Regulations.
The details of the transactions with the related parties are provided in the accompanying financial statements.
The details of the related party transactions that are required to be disclosed in Form AOC - 2 is annexed herewith as Annexure-A to this report.
PARTICULARS OF LOANS, GUARANTEES, SECURITIES AND INVESTMENTS
Details of Loans, Guarantees, Securities and Investments covered under the provisions of Section 186 of the Act are given in the notes to Financial Statements.
SUBSIDIARY, ASSOCIATE AND JOINT VENTURE COMPANIES
A separate statement containing performance and highlights of Financial Statements of subsidiary, associate and joint venture companies is provided in the prescribed form AOC-1 attached to the Consolidated Financial Statements and forms part of this report.
The name of companies which have become or ceased to be subsidiary or joint venture or associate companies, if any, during FY''22 have been mentioned in the notes to the accounts.
The financial statements of subsidiary companies are kept open for inspection by the shareholders at the registered office of the Company during business hours on all days except on Saturdays, Sundays and on public holidays upto the date of the Annual General Meeting ("AGM") as required under Section 136 of the Act. Any member desirous of obtaining a copy of the said financial statements may write to the Company at its Registered Office or Corporate Office.
The audited financial statements including the consolidated financial statements and all other documents required to be attached thereto and financial statements of each of the subsidiaries have been uploaded on the website of your Company at www.jindalsteelpower.com.
Your Company has framed a policy for determining "Material Subsidiary" in terms of Regulation 16(1 )(c) of Listing Regulations. The policy may be accessed on the website of the Company at: https://www.iindalsteelpower.com/policies.html.
DIRECTORS AND KEY MANAGERIAL PERSONNEL Directors:
Mr. Ram Vinay Shahi, Mr. Arun Kumar Purwar, Mr. Sudershan Kumar Garg and Mr. Hardip Singh Wirk, ceased to be Independent Directors w.e.f. July 29, 2021, consequent to the completion of their second term as Independent Directors on the Board. Your Board regrets to inform you of the sad demise of Mr. Anjan Barua, Nominee Director -State Bank of India on May 22, 2021.
On the recommendation of NRC, the Board of Directors appointed Dr. Bhaskar Chatterjee, Mr. Anil Wadhwa, Mrs. Shivani Wazir Pasrich and Ms. Kanika Agnihotri, as Additional Directors in the category of Independent Directors with effect from July 29, 2021 and Mr. Sunjay Kapur, as an Additional Director in the category of Independent Director with effect from August 10, 2021, respectively to hold the office up to the AGM of the Company. Subsequently, the shareholders of the Company approved the appointments of Dr. Bhaskar Chatterjee for a term of consecutive 2 years, Mr. Anil Wadhwa for a term of 1 year, Mrs. Shivani Wazir Pasrich for a term of consecutive 2 years and Ms. Kanika Agnihotri for a term of consecutive 2 years, as Independent Directors with effect from July 29, 2021 and Mr. Sunjay Kapur, for a term of consecutive 5 years as independent director with effect from August 10, 2021.
Dr. Aruna Sharma and Mr. Anil Wadhwa, Independent Directors completed their respective terms on the Board and ceased to be Independent Directors w.e.f. September 2, 2021 and July 29, 2022, respectively.
On the recommendations of NRC, the Board approved the appointments of Mr. Ramkumar Ramaswamy, Mr. Sunil Kumar Agrawal as Additional Directors w.e.f. July 15, 2022 to hold the office upto AGM of the Company. Subject to the approval of shareholders of the Company, Mr. Ramkumar Ramaswamy and Mr. Sunil Kumar Agrawal were also appointed as Whole-time Directors of the Company for a period of 3 years w.e.f. July 15, 2022.
Mrs. Shallu Jindal, Non-Executive Director decided to step-down from the Board w.e.f. July 16, 2022.
Mr. V.R. Sharma completed his three-year term as Managing Director on August 13, 2022. On the recommendations of NRC, the Board approved the appointment of Mr. Bimlendra Jha as an Additional Director w.e.f. August 14, 2022 to hold the office upto AGM of the Company. Subject to the approval of shareholders of the Company, Mr. Bimlendra Jha was appointed as Managing Director for a period of 5 years w.e.f. August 14, 2022.
The Board places on record its deep appreciation of the contributions made by Mrs. Shallu Jindal, Mr. V.R. Sharma, Mr. Ram Vinay Shahi, Mr. Arun Kumar Purwar, Mr. Sudershan Kumar Garg, Mr. Hardip Singh Wirk, Mr. Anjan Barua, Dr. Aruna Sharma and Mr. Anil Wadhwa during their respective tenures on the Board.
In accordance with the provisions of Section 152 of the Act and in terms of the Articles of Association of the Company, Mr. Dinesh Kumar Saraogi, Wholetime Director of the Company is retiring by rotation at the ensuing AGM and being eligible, offers himself for re-appointment.
In terms of Rule 6 of the Companies (Appointment and Qualification of Directors) Rules, 2014, all Independent Directors of the Company have enrolled themselves on the Independent Directors'' Databank as on the date of this Report and will undergo the online proficiency self assessment test within the specified timeline unless exempted under the aforesaid Rules.
The particulars in respect of Directors to be appointed/ re-appointed as required under Regulation 36(3) of Listing Regulations and Secretarial Standard -2 are mentioned elsewhere in the Notice of AGM.
Mr. Ramkumar Ramaswamy was appointed as Chief Financial Officer of the Company w.e.f. May 21, 2022 to fill the vacancy caused due to resignation of Mr. Hemant Kumar.
The Board carried out an annual performance evaluation of its own performance, the performance of the Directors individually as well as the evaluation of the various Committees of the Board. Details of the same are given in the Corporate Governance Report which forms part of this report.
DECLARATION BY INDEPENDENT DIRECTORS
The Company has received declarations from each of the Independent Directors that they, respectively, meet the criteria of independence prescribed under Section 149 read with Schedule IV of the Act and rules made thereunder, as well as Regulations 16 and 25(8) of the Listing Regulations. Based on the declarations received, the Board considered the independence of each of the Independent Directors in terms of above provisions and is of the view that they fulfil the criteria of independence and are independent from the management.
MEETINGS OF THE BOARD AND COMMITTEES
The Board of Directors met 14 times during the period under review. The details of number of meetings of the Board and various Committees of the Board of your Company are set out in the Corporate Governance Report which forms part of this report.
The Directors state that applicable secretarial standards i.e. SS-1 and SS-2, relating to meetings of the Board of the Directors and General Meetings have been duly followed by the Company.
In accordance with the provisions of Section 178 of the Act and Part D of Schedule II of the Listing Regulations, the policy on Nomination and Remuneration of Directors, KMPs and Senior Management of your Company is uploaded on the website of the Company and may be accessed at: https://www.jindalsteelpower.com/policies.html
PARTICULARS OF EMPLOYEES AND RELATED DISCLOSURES
In terms of the provisions of Section 197(12) of the Act read with Rules 5(2) and 5(3) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, as amended, a statement
showing the names and other particulars of the employees drawing remuneration in excess of the limits set out in the said rules and the disclosures relating to remuneration and other details required under the provisions of Section 197(12) of the Act read with Rule 5(1) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 is annexed as Annexure-B to this report.
M/s Lodha & Co., Chartered Accountants (ICAI Firm Registration No. 301051E), New Delhi, were appointed as the Statutory Auditors for a period of 5 years from the conclusion of 42nd AGM till the conclusion of 47th AGM of the Company.
The Statutory Auditors have confirmed that they are not disqualified from continuing as the auditors of the Company.
The Statutory Auditors have issued an unmodified opinion on the Company''s Financial Statements for the financial year ended March 31, 2022.
There are no instances of any fraud reported by the Statutory Auditors to the Audit Committee or the Board pursuant to section 143(12) of the Act.
M/s RSMV & Co., Company Secretaries, New Delhi (CP No. 11571) were appointed to conduct the Secretarial Audit of the Company for the financial year 2021-22.
In terms of Regulation 24A of the Listing Regulations, M/s RSMV & Co., Company Secretaries were also appointed as Secretarial Auditors of Jindal Power Limited, a material unlisted subsidiary of the Company.
Secretarial Audit Reports issued by M/s. RSMV & Co., Company Secretaries, New Delhi are annexed herewith as Annexure-C to the Report.
In terms of sub-section (1) of Section 148 of the Act read with Companies (Cost Records and Audit) Rules, 2014, as amended from time to time, the Company is required to maintain the cost records. Accordingly, such accounts and records have been maintained by the Company.
M/s Ramanath Iyer & Co., (FRN 000019), Cost Accountants, were appointed as the Cost Auditors of the Company for auditing the cost records of the Company for the financial year 2022-23, subject to ratification of remuneration by the Shareholders of the Company in the 43rd AGM of the Company. Accordingly, an appropriate resolution seeking ratification of the remuneration for the financial year 2022-23 of M/s Ramanath Iyer & Co., Cost Auditors, is included in the Notice convening the 43rd AGM of the Company.
The Company has in place a robust risk management framework which identifies and evaluates business risks and opportunities. The Company recognises that these risks need to be managed and mitigated to protect the interest of the shareholders and stakeholders, to achieve business objectives and enable sustainable growth. The risk management framework is aimed at effectively mitigating the
Company''s various business and operational risks, through strategic actions. Risk management is embedded in our critical business activities, functions and processes. The risks are reviewed for the change in the nature and extent of the major risks identified since the last assessment. It also provides control measures for risk and future action plans.
The Company has in place adequate internal financial controls with reference to financial statements and such internal financial controls are operating effectively. Your Company has adopted policies and procedures for ensuring the orderly and efficient conduct of its business, including adherence to the Company''s policies, safeguarding of its assets, prevention and detection of frauds and errors, accuracy and completeness of the accounting records, and timely preparation of reliable financial disclosures.
CORPORATE SOCIAL RESPONSIBILITY
The Company strongly believes that sustainable community development is essential for harmony between the community and the industry. The Company endeavours to make a positive contribution especially to the underprivileged communities by supporting a wide range of socio-economic, educational and health initiatives.
The Health, Safety, CSR, Sustainability and Environment Committee ("HSCSE Committee") of the Board of Directors of the Company oversees the implementation of CSR Policy of the Company.
In line with the provisions of the Act and on the recommendations of the HSCSE Committee, the Board of Directors has approved the CSR Policy of the Company. Detailed CSR Policy of the Company has been uploaded on the website of the Company at www.jindalsteelpower.com.
The Annual Report on the CSR activities for the financial year 2021-22 is annexed herewith as Annexure-D to this report.
SIGNIFICANT AND MATERIAL ORDERS PASSED BY THE REGULATORS OR COURTS
No significant material order(s) were passed by the regulators/ courts which would impact the going concern status of the Company and its future operations during the year under review.
DIRECTORS'' RESPONSIBILITY STATEMENT
Pursuant to Section 134(3) (c) of the Act, your Directors state that:
(a) in the preparation of the annual accounts for the year ended March 31, 2022, the applicable accounting standards and Schedule III to the Act, have been followed and there are no material departures from the same;
(b) the Directors have selected such accounting policies and applied them consistently and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of your Company as at March 31, 2022 and of the profit of the Company for the year ended on that date;
(c) t he Directors have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities;
(d) The Directors have prepared the annual accounts on a going concern basis;
(e) The Directors have laid down internal financial controls to be followed by the Company and that such internal financial controls are adequate and are operating effectively; and
(f) The Directors have devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems are adequate and operating effectively.
OTHER INFORMATION Business Responsibility Report
As stipulated under Listing Regulations, a separate section titled âBusiness Responsibility Report" forms part of this Annual Report which describes the initiatives taken by your Company from environmental, social and governance perspective.
Management Discussion and Analysis Report
As stipulated under Listing Regulations, a separate section titled âManagement Discussion and Analysis Report", forms part of this Annual Report.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS AND OUTGO
The particulars related to conservation of energy, technology absorption and foreign exchange earnings and outgo as required to be disclosed under Section 134(3) (m) of the Act read with Rule 8 of the Companies (Accounts) Rules, 2014, is annexed herewith as Annexure-E to this Report.
In accordance with the provisions of Sections 92 and 134(3)(a) of the Act read with the Companies (Management and Administration) Rules, 2014, the Annual Return in e-form MGT-7 for the financial year ended March 31, 2022 has been uploaded on the website of the Company i.e. www.jindalsteelpower.com
Your Company is committed to achieve the highest standards of Corporate Governance and adhere to the Corporate Governance requirements set out by the Securities and Exchange Board of India. Your Company has also implemented several best Corporate Governance practices as prevalent globally.
The report on Corporate Governance as stipulated under the listing regulations for the Financial Year 2021-22 and a certificate issued by M/s Navneet K. Arora & Co. LLP, Company Secretaries in Practice confirming compliance with the conditions of Corporate Governance is annexed herewith as Annexure- F to this report.
WHISTLE BLOWER POLICY/VIGIL MECHANISM
Your Company has formulated a robust vigil mechanism to deal with instances of unethical behavior, actual or suspected fraud or violation of Company''s code of conduct or ethics policy. The details of policy are explained in the Corporate Governance Report and also uploaded on website of the Company at: https://www.jindalsteelpower.com/ policies.html
Details of the impact of Covid-19, have been provided in the notes to financial statements forming part of this report.
PREVENTION OF SEXUAL HARASSMENT AT WORKPLACE
As per the requirement of the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 and the Rules made thereunder, your Company has constituted an Internal Complaints Committee having designated independent member(s) to redress complaints regarding sexual harassment. During the year, no complaint regarding Sexual Harassment has been reported.
DISCLOSURE UNDER THE INSOLVENCY AND BANKRUPTCY CODE, 2016
There was no application made by the Company initiating insolvency proceedings against any other entity nor are any proceedings pending against the Company under the Insolvency and Bankruptcy Code, 2016 (31 of 2016) during the year under review.
DIFFERENCE IN VALUATION IN THE CASE OF ONE TIME SETTLEMENT OF LOAN FROM BANK OR FINANCIAL INSTITUTION
There was no one time settlement of loan from banks or financial institutions by the Company during the year under review. Accordingly, there are no details regarding difference between amount of the valuation done at the time of one time settlement and the valuation done while taking loan from the Banks or Financial Institutions.
Statements in the Board''s Report and the Management Discussion & Analysis describing the Company''s objectives, expectations or forecasts may be forward looking within the meaning of applicable Securities Laws and Regulations. Actual results may differ materially from those expressed in the statement. Important factors that could influence the Company''s operations include global and domestic demand and supply conditions affecting selling prices of finished goods, input availability and prices, changes in Government Regulations, Tax Laws, Economic Developments within the country and other factors such as litigation and industrial relations.
The Directors wish to place on record their appreciation for the sincere services rendered by Company''s staff and workers at all levels. Your Directors also wish to place on record their appreciation for the valuable co-operation and support received from the Government of India, various State Governments, the Banks/ Financial Institutions and other stakeholders such as shareholders, customers and suppliers, among others. The Directors also commend the continuing commitment and dedication of the employees at all levels, which has been critical for the Company''s success. The Directors look forward to their continued support in future.
For & on behalf of the Board of Directors Naveen Jindal
Place: New Delhi Chairman
Date: August 30, 2022 DIN: 00001523
Mar 31, 2021
The Board of Directors are pleased to present the Company''s 42nd Annual Report and the Company''s audited financial statements (standalone and consolidated) for the Financial Year ended March 31, 2021.
The Company''s financial results for the year ended March 31, 2021, are summarized below:
('' in Crore) |
||||
Particulars | |
Standalone |
Consolidated |
||
2020-21 |
2019-20 | |
2020-21 |
2019-20* |
|
lot.il Income |
33,973.94 |
26,228.25 |
39,527.55 |
30,490.80 |
IBIIDA |
13,054.91 |
5,777.31 |
14,444.25 |
6,814.66 |
Depreciation and amortisation expenses |
2,243.45 |
2,287.08 |
3,453.34 |
3,428.87 |
Finance Cost (Net) |
2,186.54 |
2,610.61 |
3,093.33 |
3,767.88 |
Profit/ (Loss) before tax after exceptional Items from continuing operations |
9,119.22 |
879.62 |
7,295.64 |
(465.24) |
1 ess: Provision of tax |
1,964.91 |
261.95 |
1,768.71 |
108.45 |
Profit/ (Loss)after tax from continuing operations |
7,154.31 |
617.67 |
5,526.93 |
(573.69) |
Profit/ (Loss) before tax after exceptional Items from discontinued operations |
- |
- |
(1,216.60) |
219.40 |
1 ess: Provision ol tax |
- |
- |
43.29 |
45.41 |
Profit/ (Loss) after tax from discontinued operations |
- |
- |
(1,259.89) |
173.99 |
* Please refer note no. 55 to the consolidated financial statements as at and for the year ended March 31, 2021. |
Rating Agencies |
Long-term debt/facilities/NCD |
Short term debt/ facilities |
Credit Analysis & Research Ltd. |
A(-) |
A2( ) |
("CARI") |
||
(RISIl |
A( ) |
A2( ) |
ICRA Limited |
BBB(i) |
A2 |
MATERIAL CHANGES AND COMMITMENTS AFFECTING FINANCIAL POSITION AND CHANGE IN BUSINESS
There have been no material change(s) and commitment(s), except elsewhere stated in this report, affecting the financial position of the Company between the end of the financial year of the Company i.e. March 31, 2021 and the date of this Report.
There has been no change in the nature of business of the Company during the financial year ended on March 31, 2021.
Notwithstanding the massive disruption caused by the pandemic in early FY''21, the Company''s wide product profile and geographical diversification helped the Company report higher production and sales on year-on-year basis. During FY''21, production of crude steel increased by 19% (y-o-y) to hit a record of 7.51 MT as against 6.30 MT in FY''20, whereas the sales of various steel products during FY''21, also reached the highest ever level of 7.28 MT, an increase of 20% (y-o-y) as compared to 6.06 MT in FY''20.
Better export markets during the FY''21, resulted in the Company''s exports rising by 226% to 2.53 MT accounting for 35% of its overall sales. The pellet operations at the Barbil Plant of the Company also reported record production of 7.76 MT in FY''21 as compared to 7.28 MT in FY''20.
During FY''21, the power generation was 13,075 MU as against 9,583 MU in FY''20.
The Board of Directors of your Company had approved the Dividend Distribution Policy in accordance with Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations,
2015 (âListing Regulations''). The Policy may be accessed on the website of the Company at: https://www.iindalsteelpower.com/policies.html
The objective of this policy is to establish the parameters to be considered by the Board of Directors of your Company before declaring or recommending dividend.
The Board of Directors of your Company has not recommended any dividend during the year. There was no transfer to reserves during the year.
Your Company''s domestic credit ratings, as on March 31, 2021, are as follows:
During the FY''21, Credit Ratings of the Company were upgraded to "A(-) with Stable outlook'' by CRISIL from "BBB with positive outlook'', CARE has upgraded the credit rating to "A(-)" with Stable outlook from "BBB(-) with Stable outlook". ICRA has also upgraded the credit rating to "BBB( ) with Stable outlook" from "BBB(-) with Positive outlook".
Further, subsequent to the close of FY''21, the credit ratings of the Company have been further upgraded, as follows:
Rating Agencies |
Long-term debt/facilities/NCD |
Short term debt/ facilities |
CARE |
A( ) |
A1( ) |
ICRA Limited |
A |
A1 |
CRISIL |
A(-) |
A2( ) |
CONSOLIDATED FINANCIAL STATEMENTS
In accordance with the provisions of the Companies Act, 2013 ("the Act"), the Listing Regulations and Ind AS, the audited consolidated financial statements are provided in the Annual Report.
SHARE CAPITAL
During FY''21, there was no change in the Authorised Share Capital and Paid-up Share Capital of the Company. As at March 31, 2021, the Authorised Share Capital of the Company was '' 300,00,00,000/-(Rupees Three Hundred Crore only) divided into 200,00,00,000 (Two Hundred Crore) equity shares of '' 1/- (Rupee One only) each and 1,00,00,000 (One Crore) Preference Shares of '' 100/- (Rupees One Hundred only) each and Paid-up Share Capital of the Company was '' 1,02,00,15,971/-(Rupees One Hundred Two Crore Fifteen Thousand Nine Hundred and Seventy One only) comprising of 1,02,00,15,971 (One Hundred Two Crore Fifteen Thousand Nine Hundred and Seventy One) equity shares of '' 1/- (Rupee One only).
Subsequent to the closure of FY''21, the Company has allotted 72,126 equity shares to the eligible employees of the Company and its subsidiary, on exercise of the options granted under JSPL ESOP Scheme-2017
EMPLOYEE STOCK OPTION SCHEME/ EMPLOYEE SHARE PURCHASE SCHEME
In order to motivate, incentivize and reward employees, your Company instituted Employee Share Purchase Schemes namely JSPL ESPS-2013, JSPL ESPS-2018 and Employee Stock Option Scheme namely JSPL ESOP Scheme-2017.
The Nomination and Remuneration Committee ("NRC") monitors the implementation of JSPL ESPS-2013, JSPL ESPS-2018 and JSPL ESOP Scheme-2017. JSPL ESPS-2013, JSPL ESPS-2018 and JSPL ESOP Scheme-2017 are in compliance with the Securities and Exchange Board of India (Share Based Employee Benefits) Regulations, 2014 ("SEBI SBEB Regulations").
Relevant disclosures pursuant to SEBI SBEB Regulations, as on March 31, 2021, are available on the website of the Company at www. jindalsteelpower.com.
Certificate from M/s. Lodha & Co., Chartered Accountants, Statutory Auditors, with respect to the implementation of JSPL ESPS-2013, JSPL ESPS-2018 and JSPL ESOP Scheme-2017 will be available on the website of the Company at www.jindalsteelpower.com.
NON-CONVERTIBLE DEBENTURES
The aggregate outstanding amount of Non-Convertible Debentures ("NCDs") of the Company as on March 31, 2021 was '' 12.40 Crore.
During FY''21, NCDs amounting to '' 672.40 Crores have been redeemed. There was no delay in servicing of interest and principal of NCDs during FY''21, in terms of the schedule of payment agreed with the Debenture holders from time to time. Necessary Disclosures in this regard under Listing Regulations have been made to the Stock Exchange where the debentures of the Company are listed.
Subsequent to the closure of FY''21, the Company has repaid the outstanding amount of '' 12.40 Crore, towards the NCDs.
The Company has not accepted/received any deposits during the year under report, falling within the ambit of Section 73 of the Act and the Companies (Acceptance of Deposits) Rules, 2014.
In terms of Section 188 of the Act read with rules framed thereunder and Regulation 23 of the Listing Regulations, your Company has in place Related Party Transactions Policy dealing with related party transactions. The policy may be accessed at: https://www. iindalsteelpower.com/policies.html
All the related party transactions that were entered and executed during the year under review were on arm''s length basis and in the ordinary course of business and within permissible framework of Section 188 of the Act and Rules made thereunder, read with Regulation 23 of Listing Regulations. There were no materially significant related party transactions made by the Company during the year that would have required the approval of the shareholders under regulation 23 of the Listing Regulations.
The details of the transactions with the related parties are provided in the accompanying financial statements. There were no related party transactions entered by the Company during the year under review that are required to be disclosed in Form AOC-2.
PARTICULARS OF LOANS, GUARANTEES, SECURITIES AND INVESTMENTS
Details of Loans, Guarantees, Securities and Investments covered under the provisions of Section 186 of the Act are given in the notes to Financial Statements.
SUBSIDIARIES, ASSOCIATE AND JOINT VENTURE COMPANIES
A separate statement containing performance and highlights of Financial Statements of subsidiary, associate and joint venture companies is provided in the prescribed form AOC-1 attached to the Consolidated Financial Statements forms part of this report.
The name of companies which have become or ceased to be subsidiary or joint venture or associate companies, if any, have been mentioned in the notes to the accounts.
The financial statements of subsidiary companies are kept open for inspection by the shareholders at the registered office of the Company during business hours on all days except on Saturdays, Sundays and on public holidays upto the date of the Annual General Meeting ("AGM") as required under Section 136 of the Act. Any member desirous of obtaining a copy of the said financial statements may write to the Company at its Registered Office or Corporate Office.
The audited financial statements including the consolidated financial statements and all other documents required to be attached thereto and financial statements of each of the subsidiaries have been uploaded on the website of your Company at www.iindalsteelpower.com.
Your Company has framed a policy for determining "Material Subsidiary" in terms of Regulation 16(c) of Listing Regulations. The policy may be accessed on the website of the Company at: https:// www.iindalsteelpower.com/policies.html
During FY'' 21, the shareholders of the Company, in the Extra-ordinary General Meeting held on July 28, 2020, subject to the approval of lenders of Jindal Shadeed Iron and Steel LLC, Oman ("Jindal Shadeed") and such other approvals, consents, permissions and sanction as may be necessary, approved the divestment by Jindal Steel & Power (Mauritius) Limited ("JSPML"), upto its entire stake in Jindal Shadeed, by way of sale of shares to Templar Investments Limited or any of its subsidiaries, in one or more tranches.
In terms of the said approval of the shareholders, during the year JSPML completed the sale of its entire stake in the Jindal Shadeed to Vulcan Steel.
Subsequent to the closure of FY''21, the Board of Directors of the Company, subject to approval of the shareholders, and regulatory approvals, approvals from lenders of the Company and Jindal Power Limited, contractual approvals and such other approvals, consents, permissions and sanctions as may be necessary in line with extant relevant guidelines, approved the divestment of its entire stake, both Equity Shares and Preference Shares, in Jindal Power Limited, a material subsidiary of the Company, by way of sale of Equity Shares and Preference Shares, to Worldone Private Limited ("Worldone"), a Promoter Group Company and a related party to the Company, for an aggregate consideration of '' 7401,28,55,824 (Indian Rupees Seven Thousand Four Hundred and One Crore Twenty Eight Lakh Fifty Five Thousand Eight Hundred and Twenty Four) payable partly by way of cash consideration of '' 3015,00,00,000 (Indian Rupees Three Thousand and Fifteen Crores) and partly by way of Worldone taking over and assuming all the liabilities and obligations in relation to the intercorporate deposits and capital advances paid by Jindal Power Limited to the Company, aggregating to '' 4386,28,55,824 (Indian Rupees Four Thousand Three Hundred and Eighty Six Crores Twenty Eight Lakhs Fifty Five Thousand Eight Hundred and Twenty Four). The long stop date for completion of the proposed divestment, as detailed above, is 12 (twelve) months which may be mutually extended by the parties thereto, failing which the proposed divestment shall terminate.
DIRECTORS AND KEY MANAGERIAL PERSONNEL Directors:
On the recommendations of NRC, the Board, subject to the approval of the shareholders, approved the re-appointments of Mr. Naveen Jindal, Wholetime Director designated as the Chairman and Mr. Dinesh Kumar Saraogi, Wholetime Director for a further period of 3 years w.e.f. October 1, 2020 and November 9, 2020, respectively. Subsequently, the Shareholders of the Company, in the AGM of the Company held on September 30, 2020, approved the re-appointments of Mr. Naveen Jindal, Wholetime Director designated as the Chairman and Mr. Dinesh Kumar Saraogi, Whole time for a further period of 3 years w.e.f. October 1, 2020 and November 9, 2020, respectively.
Your Board regrets to inform you of the sudden and sad demise of Mr. Anjan Barua, Nominee Director -State Bank of India on May 22, 2021.
The second term of appointment of Mr. Ram Vinay Shahi, Mr. Arun Kumar Purwar, Mr. Sudershan Kumar Garg and Mr. Hardip Singh Wirk, Independent Directors was completed on July 29, 2021. Accordingly, Mr. Ram Vinay Shahi, Mr. Arun Kumar Purwar, Mr. Sudershan Kumar Garg and Mr. Hardip Singh Wirk, ceased to be Independent Directors w.e.f. July 29, 2021.
The Board places on record its deep appreciation of the contributions made by Mr. Barua, Mr. Shahi, Mr. Purwar, Mr. Garg and Mr. Wirk, during their respective tenures on the Board.
On the recommendation of NRC, the Board of Directors has appointed Dr. Bhaskar Chatterjee, Mr. Anil Wadhwa, Mrs. Shivani Wazir Pasrich and Ms. Kanika Agnihotri, as Additional Directors in the category of Independent Directors with effect from July 29, 2021 and Mr. Sunjay Kapur, as an Additional Director in the category of Independent Director with effect from August 10, 2021, respectively to hold the office up to the AGM of the Company. The Board recommends their appointment as Independent Directors.
In accordance with the provisions of Section 152 of the Act and in terms of the Articles of Association of the Company, Mrs. Shallu Jindal, Director of the Company is retiring by rotation at the ensuing AGM and is eligible for re-appointment. Your Board recommends the reappointment of Mrs. Shallu Jindal, Director of the Company.
The particulars in respect of Mrs. Shallu Jindal, Dr. Bhaskar Chatterjee, Mr. Anil Wadhwa, Mrs. Shivani Wazir Pasrich, Ms. Kanika Agnihotri and Mr. Sunjay Kapur as required under Regulation 36(3) of Listing Regulations and SS-2, are mentioned in the Notice of AGM.
Mr. Hemant Kumar was appointed as Chief Financial Officer of the Company w.e.f. December 15, 2020 to fill the vacancy caused due to resignation of Mr. Deepak Sogani.
The Board carried out an annual performance evaluation of its own performance, the performance of the Directors individually as well as the evaluation of the various Committees of the Board. Details of the same are given in the Corporate Governance Report which forms part of this report.
DECLARATION BY INDEPENDENT DIRECTORS
The Company has received declarations from each of the Independent Directors that they, respectively, meet the criteria of independence prescribed under Section 149 read with Schedule IV of the Act and rules made thereunder, as well as Regulations 16 and 25(8) of the Listing Regulations. Based on the declarations received, the Board considered the independence of each of the Independent Directors in terms of above provisions and is of the view that they fulfil the criteria of independence and are independent from the management.
MEETINGS OF THE BOARD AND COMMITTEES
The Board of Directors met 8 times during the period under review. The details of number of meetings of the Board and various Committees of the Board of your Company are set out in the Corporate Governance Report which forms part of this report.
The Directors state that applicable secretarial standards i.e. SS-1 and SS-2, relating to meetings of the Board of the Directors and General Meetings have been duly followed by the Company.
In accordance with the provisions of Section 178 of the Act and Part D of Schedule II of the Listing Regulations, the policy on Nomination and Remuneration of Directors, KMPs and Senior Management of your Company is uploaded on the website of the Company and may be accessed at: https://www.iindalsteelpower.com/policies.html
PARTICULARS OF EMPLOYEES AND RELATED DISCLOSURES
In terms of the provisions of Section 197(12) of the Act read with Rules 5(2) and 5(3) of the Companies (Appointment and Remuneration
of Managerial Personnel) Rules, 2014, as amended, a statement showing the names and other particulars of the employees drawing remuneration in excess of the limits set out in the said rules and the disclosures relating to remuneration and other details required under the provisions of Section 197(12) of the Act read with Rule 5(1) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 is annexed as Annexure-A to this report.
M/s Lodha & Co., Chartered Accountants (ICAI Firm Registration No. 301051E), New Delhi, who had been appointed as the Statutory Auditors for a period of 5 years from the conclusion of 37th AGM, will complete their present term on the conclusion of 42nd AGM of the Company. The Board of Directors, on the recommendation of the Audit Committee, recommended for the approval of the members of the Company, the re-appointment of M/s Lodha & Co., Chartered Accountants (ICAI Firm Registration No. 301051E), New Delhi, as Statutory Auditors for the second term of 5 years, from the conclusion of 42nd AGM of the Company till the completion of 47th AGM of the Company.
The Company has received confirmation from the Statutory Auditors to the effect that their re-appointment, if made, will be in accordance with the limits specified under the Act and they satisfy the criteria with respect to their eligibility, provided in Section 141 of the Act read with rules made thereunder.
The Statutory Auditors have issued an unmodified opinion on the Company''s Financial Statements for the financial year ended March 31, 2021.
There are no instances of any fraud reported by the Statutory Auditors to the Audit Committee or the Board pursuant to section 143(12) of the Act.
M/s RSMV & Co., Company Secretaries, New Delhi (CP No. 11571) were appointed to conduct the Secretarial Audit of the Company for the financial year 2020-21. In terms of Regulation 24A of the Listing Regulations, M/s RSMV & Co., Compa ny Secreta ries were also a ppoi nted as Secretarial Auditors of Jindal Power Limited, a material unlisted subsidiary of the Company.
Secretarial Audit Reports issued by M/s. RSMV & Co., Company Secretaries, New Delhi of the Company as well as Jindal Power Limited are annexed herewith as Annexure-B to the Report. The report of the Secretarial Auditors are self explanatory.
In terms of sub-section (1) of Section 148 of the Act read with Companies (Cost Records and Audit) Rules, 2014, as amended from time to time, the Company is required to maintain the cost records. Accordingly, such accounts and records have been maintained by the Company.
M/s Ramanath Iyer & Co., (FRN 000019), Cost Accountants, were appointed as the Cost Auditors of the Company for auditing the cost records of the Company for the financial year 2021-22, subject to ratification of remuneration by the Shareholders of the Company in the 42nd AGM of the Company. Accordingly, an appropriate resolution seeking ratification of the remuneration for the financial year 2021-22 of M/s Ramanath Iyer & Co., Cost Auditors, is included in the Notice convening the 42nd AGM of the Company.
The Company has in place a robust risk management framework which identifies and evaluates business risks and opportunities. The Company recognizes that these risks need to be managed and mitigated to protect the interest of the shareholders and stakeholders, to achieve business objectives and enable sustainable growth. The risk management framework is aimed at effectively mitigating the Company''s various business and operational risks, through strategic actions. Risk management is embedded in our critical business activities, functions and processes. The risks are reviewed for the change in the nature and extent of the major risks identified since the last assessment. It also provides control measures for risk and future action plans.
The Company has in place adequate internal financial controls with reference to financial statements and such internal financial controls are operating effectively. Your Company has adopted policies and procedures for ensuring the orderly and efficient conduct of its business, including adherence to the Company''s policies, safeguarding of its assets, prevention and detection of frauds and errors, accuracy and completeness of the accounting records, and timely preparation of reliable financial disclosures.
CORPORATE SOCIAL RESPONSIBILITY
The Company strongly believes that sustainable community development is essential for harmony between the community and the industry. The Company endeavours to make a positive contribution especially to the underprivileged communities by supporting a wide range of socio-economic, educational and health initiatives.
The Health, Safety, CSR, Sustainability and Environment Committee ("HSCSE Committee") of the Board of Directors of the Company oversees the implementation of CSR Policy of the Company.
In line with the provisions of the Act and on the recommendations of the HSCSE Committee, the Board of Directors has approved the CSR Policy of the Company. Detailed CSR Policy of the Company has been uploaded on the website of the Company at www.jindalsteelpower.com.
The Annual Report on the CSR activities for the financial year 2020-21 is annexed herewith as Annexure-C to this report.
SIGNIFICANT AND MATERIAL ORDERS PASSED BY THE REGULATORS OR COURTS
No significant material order(s) passed by the regulators/ courts which would impact the going concern status of the Company and its future operations during the year under review.
DIRECTORS'' RESPONSIBILITY STATEMENT
Pursuant to Section 134(3) (c) of the Act, your Directors state that:
(a) in the preparation of the annual accounts for the year ended March 31, 2021, the applicable accounting standards and Schedule III to the Act, have been followed and there are no material departures from the same;
(b) the Directors have selected such accounting policies and applied them consistently and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of your Company as at March 31, 2021 and of the profit of the Company for the year ended on that date;
(c) the Directors have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities;
(d) The Directors have prepared the annual accounts on a going concern basis;
(e) The Directors have laid down internal financial controls to be followed by the Company and that such internal financial controls are adequate and are operating effectively; and
(f) The Directors have devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems are adequate and operating effectively.
OTHER INFORMATION Business Responsibility Report
As stipulated under Listing Regulations, a separate section titled âBusiness Responsibility Report" forms part of this Annual Report which describes the initiatives taken by your Company from environmental, social and governance perspective.
Management Discussion and Analysis Report
As stipulated under Listing Regulations, a separate section titled "Management Discussion and Analysis Report", forms part of this Annual Report.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS AND OUTGO
The particulars related to conservation of energy, technology absorption and foreign exchange earnings and outgo as required to be disclosed under Section 134(3) (m) of the Act read with Rule 8 of the Companies (Accounts) Rules, 2014, is annexed herewith as Annexure-D to this Report.
In accordance with the provisions of Sections 92 and 134(3)(a) of the Act read with the Companies (Management and Administration) Rules, 2014, the Annual Return in e-form MGT-7 for the financial year ended March 31, 2021 has been uploaded on the website of the Company i.e. www.jindalsteelpower.com
Your Company is committed to achieve the highest standards of Corporate Governance and adhere to the Corporate Governance requirements set out by the Securities and Exchange Board of India. Your Company has also implemented several best Corporate Governance practices as prevalent globally.
The report on Corporate Governance as stipulated under the listing regulations for the Financial Year 2020-21 and a certificate issued by M/s Navneet K. Arora & Co. LLP, Company Secretaries in Practice confirming compliance with the conditions of Corporate Governance is annexed herewith as Annexure-E to this report.
WHISTLE BLOWER POLICY/VIGIL MECHANISM
Your Company has formulated a robust vigil mechanism to deal with instances of unethical behavior, actual or suspected fraud or violation of Company''s code of conduct or ethics policy. The details of policy are explained in the Corporate Governance Report and also uploaded on website of the Company at: https://www.iindalsteelpower.com/ policies.html
Details of the impact of Covid-19, have been provided in the notes to financial statements forming part of this report.
PREVENTION OF SEXUAL HARASSMENT AT WORKPLACE
As per the requirement of the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 and the Rules made thereunder, your Company has constituted an Internal Complaints Committee having designated independent member(s) to redress complaints regarding sexual harassment. During the year, no complaint regarding Sexual Harassment has been reported.
Statements in the Board''s Report and the Management Discussion & Analysis describing the Company''s objectives, expectations or forecasts may be forward looking within the meaning of applicable Securities Laws and Regulations. Actual results may differ materially from those expressed in the statement. Important factors that could influence the Company''s operations include global and domestic demand and supply conditions affecting selling prices of finished goods, input availability and prices, changes in Government Regulations, Tax Laws, Economic Developments within the country and other factors such as litigation and industrial relations.
The Directors wish to place on record their appreciation for the sincere services rendered by Company''s staff and workers at all levels. Your Directors also wish to place on record their appreciation for the valuable co-operation and support received from the Government of India, various State Governments, the Banks/ Financial Institutions and other stakeholders such as shareholders, customers and suppliers, among others. The Directors also commend the continuing commitment and dedication of the employees at all levels, which has been critical for the Company''s success. The Directors look forward to their continued support in future.
For & on behalf of the Board of Directors Naveen Jindal
Place: New Delhi Chairman
Date: August 10, 2021 DIN: 00001523
Mar 31, 2018
Dear Members,
The Board of Directors are pleased to present the Companyâs 39th Annual Report and the Companyâs audited financial statements (standalone and consolidated) for the Financial Year ended March 31, 2018.
FINANCIAL RESULTS
The Companyâs financial results for the year ended March 31, 2018 is summarized below:
(Rs. in Crore)
Particulars |
Standalone |
Consolidated |
||
2017-18 |
2016-17 |
2017-18 |
2016-17 |
|
Total Income |
17,523.04 |
15,502.49 |
27,844.25 |
22,706.23 |
EBITDA |
3,973.05 |
2,901.77 |
6,469.11 |
4,709.18 |
Profit/ (Loss) before tax after exceptional items |
(671.78) |
(1,456.98) |
(1,864.05) |
(3,042.90) |
Less: Provision of tax |
310.17 |
470.53 |
239.81 |
502.68 |
Profit/ (Loss) after tax |
(361.61) |
(986.45) |
(1,624.24) |
(2,540.22) |
Balance brought forward from previous year |
18,962.89 |
20,112.44 |
25,809.24 |
28,254.16 |
Surplus carried to Balance Sheet |
(361.80) |
(983.76) |
(1,671.69) |
(2,662.42) |
MATERIAL CHANGES AND COMMITMENTS AFFECTING FINANCIAL POSITION AND CHANGE IN BUSINESS
There have been no material change(s) and commitment(s) affecting the financial position of the Company between the end of the financial year of the Company i.e. March 31, 2018 and the date of this Report.
There has been no change in the nature of business of the Company during the financial year ended on March 31, 2018.
PRODUCTION HIGHLIGHTS
Steel:
1) Standalone:
During FYâ18, production of crude steel was 4.02 Million MT as against 3.47 Million MT in FYâ17, whereas the sales of various steel products during FYâ18, was 3.77 Million MT as compared to 3.35 Million MT in FYâ17.
2) Consolidated:
During FYâ18, production of crude steel was 5.70 Million MT, as against 4.80 Million MT in FYâ17, whereas the sales of various steel products during FYâ18, was 5.44 Million MT as compared to 4.65 Million MT in FYâ17.
Power:
During FYâ18, the power generati on increased by 9,176 MU in FYâ17 to 10,905 MU in FYâ18.
DIVIDEND
The Board of Directors of your Company had approved the Dividend Distribution Policy in accordance with Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 (âListing Regulationsâ), The Policy may be accessed under the corporate governance section on the website of the Company at https://www.jindalsteelpower.com/img/admin/ report/pdf/dividend_distribution_policy.pdf
The objective of this policy is to establish the parameters to be considered by the Board of Directors of your Company before declaring or recommending dividend.
The Board of Directors of your Company has not recommended any dividend during the year in view of losses.
CREDIT RATING
Your Companyâs domesti c credit rati ng is âBBB- Outlook Stableâ for the long-term bank facilities non-convertible debentures, and A3 for short term bank facilities rated by CARE, CRISIL and ICRA Limited.
CONSOLIDATED FINANCIAL STATEMENTS
In accordance with the provisions of the Companies Act, 2013 (âthe Actâ), the Listing Regulati ons and Ind AS 110-Consolidated Financial Statements read with Ind AS 28-Investments in Associates & Ind AS 31-Interests in Joint Ventures, the audited consolidated financial statements are provided in the Annual Report.
SHARE CAPITAL
During FYâ18, the Authorized Share Capital of your Company has been increased from Rs.200,00,00,000/- (Rupees Two Hundred Crore only) divided into 200,00,00,000 (Two Hundred Crore) equity shares of Rs.1/- (Rupee One only) each to Rs.300,00,00,000/-(Rupees Three Hundred Crore only) divided into 200,00,00,000 (Two Hundred Crore) equity shares of Rs.1/- (Rupee One only) each and 1,00,00,000 (One Crore) Preference Shares of Rs.100/- (Rupees One Hundred only) each.
Your Company has raised additional equity capital through allotment of 14,20,000 (Fourteen Lakh Twenty Thousand) equity shares of Rs.1/- (Rupee One only) each of the Company at an issue price of Rs.140.31/- (Rupees One Hundred Forty and Thirty One paisa only) each to the promoter group entity, on preferential basis and 5,15,02,145 (Five Crore Fifteen Lakh Two Thousand One Hundred and Forty Five) equity shares of Rs.1/- (Rupee One only) each of the Company at an issue price of Rs.233/- (Rupees Two Hundred and Thirty Three only) each to the various Qualified Institutional Buyers under the Qualified Institutional Placement route.
Consequent to the above, the paid up share capital of the Company has increased from Rs.91,50, 24,234/- (Rupee Ninety One Crore Fifty Lakh Twenty Four Thousand Two Hundred and Thirty Four Only) comprising of 91,50,24,234 (Ninety One Crore Fifty Lakh Twenty Four Thousand Two Hundred and Thirty Four) equity shares of Rs.1/- (Rupee One only) each to Rs.96,79,46,379/- (Rupee Ninety Six Crore Seventy Nine Lakh Forty Six Thousand Three Hundred and Seventy Nine only) comprising of 96,79,46,379 (Ninety Six Crore Seventy Nine Lakh Forty Six Thousand Three Hundred and Seventy Nine) equity shares of Rs.1/- (Rupee One only) each.
WARRANTS
During FYâ18, your Company has also issued/ allotted 4,80,00,000 (Four Crore Eighty Lakhs) converti ble warrants, convertible into equal number of equity shares of the Company, at a price of Rs.140.31/- (Rupees One Hundred Forty and Thirty One paisa only) to the promoter group entity, on preferenti al basis. These convertible warrants are exercisable within a period of 18 months from the date of its allotment.
EMPLOYEE STOCK OPTION SCHEME/ EMPLOYEE SHARE PURCHASE SCHEME
In order to motivate, incentivize and reward employees, your Company instituted Employee Share Purchase Scheme namely JSPL ESPS-2013 and Employee Stock Option Scheme namely JSPL ESOP Scheme-2017.
The Nomination and Remuneration Committee monitors JSPL ESPS-2013 and JSPL ESOP Scheme-2017. JSPL ESPS-2013 and JSPL ESOP Scheme-2017 are in compliance with the Securities and Exchange Board of India (Share Based Employee Benefits) Regulations, 2014 (SEBI SBEB Regulations).
Relevant disclosures pursuant to SEBI SBEB Regulations, as on March 31, 2018 are available on the website of the Company at www.jindalsteelpower.com.
Certificates from M/s. Lodha & Co., Chartered Accountants, Statutory Auditors, with respect to the implementati on of JSPL ESPS-2013 and JSPL ESOP Scheme-2017 would be placed before the members at the ensuing Annual General Meeting (âAGMâ) of the Company and copy of the same shall be available for inspection at the registered office of the Company.
NON-CONVERTIBLE DEBENTURES
The aggregate outstanding amount of Non-Convertible Debentures (NCDâs) of the Company as on March 31, 2018 was Rs.3,499.60 Crore.
During FYâ18, NCDâs amounting to Rs.112.40 Crore have been redeemed and paid on due date. There is no continuing delay in servicing of NCDâs interest as on 31st March, 2018. The Company had paid all the dues including interest on NCDâs during FYâ18. Necessary disclosures in this connection under Listing Regulations have been made to the Stock Exchanges where the shares of the Company are listed.
DEPOSITS
The Company has not accepted/received any deposits during the year under report falling within the ambit of Section 73 of the Act and the Companies (Acceptance of Deposits) Rules, 2014.
RELATED PARTY TRANSACTIONS
In terms of Section 188 of the Act read with rules framed thereunder and Regulation 23 of the Listing Regulations, your Company has in place Related Party Transactions Policy dealing with related party transactions. The policy may be accessed under the Corporate Governance secti on on the website of the Company at: https:// www.jindalsteelpower.com/img/admin/report/pdf/RPT_Policy.pdf
All the related party transactions that were entered and executed during the year under review were on armâs length basis and in the ordinary course of business and within permissible framework of Secti on 188 of the Act and Rules made thereunder read with Regulation 23 of Listing Regulations. There were no materially significant related party transactions made by the Company during the year that would have required the approval of the shareholders.
The details of the transactions with the related parties are provided in the accompanying financial statements. There were no transactions during the year required to be disclosed in the Form AOC-2.
The long stop date of the securities purchase agreement entered with JSW Energy Limited for the divestment of 1000 MW (4x250 MW) thermal power plant of Jindal Power Limited, a subsidiary company, located at Village Tamnar, District Raigarh, Chhaffisgarh has been extended upto June 30, 2019.
PARTICULARS OF LOANS, GUARANTEES AND INVESTMENTS
Details of Loans, Guarantees, Securities and Investments covered under the provisions of Secti on 186 of the Act are given in the notes to Financial Statements.
SUBSIDIARIES, ASSOCIATE AND JOINT VENTURE COMPANIES
Your Company follows its global ambition to build a premium brand name for its quality steel solutions, expertise and with a view of expansion and diversification; it has created subsidiary(ies), associate and joint venture companies for facilitating these operations in various countries.
A separate statement containing salient features of Financial Statements of subsidiary(ies), associate and joint venture companies in terms of Section 129 of the Act is provided in the Consolidated Financial Statements.
The name of companies which have become or ceased to be subsidiary(ies) or joint venture or associate companies have been mentioned in the notes to the accounts.
The financial statements of subsidiary companies are kept open for inspection by the shareholders at the registered office of the Company during business hours on all days except in Saturdays, Sundays and in public holidays upto the date of the AGM as required under Section 136 of the Act. Any member desirous of obtaining a copy of the said financial statements may write to the Company at its Registered Office or Corporate Office.
The audited financial statements including the consolidated financial statements and all other documents required to be attached thereto and financial statements of each of the subsidiaries have been uploaded on the website of your Company at www.jindalsteelpower.com.
Your Company has framed a policy for determining âMaterial Subsidiaryâ in terms of Regulation 16(c) of Listing Regulations. The policy may be accessed under the Corporate Governance section on the website of the Company at: https://www.jindalsteelpower. com/img/admin/report/pdf/Policy_on_determining_material_ subsidiary.pdf
The details of business operations / performance of major subsidiaries are as below:
JINDAL POWER LIMITED
Jindal Power Limited, a subsidiary company (JPL) is operating 3,400 MW (4x250 MW and 4X600 MW) thermal power plant at Tamnar, Chhattisgarh.
During the year under review:
- 1000 MW (4x250 MW) power plant generated 4,221 million units of power.
- 600 MW of the 2,400 MW (4X600 MW) power plant generated 6,684 million units of power.
The 258 km, 400 kV double-circuit transmission line is being used as an interstate transmission line belonging to the Western Region Interstate Transmission System. The Central Electricity Regulatory Commission has granted a transmission license to the JPL for carrying on business activity and has fixed provisional tariff for its use. During FYâ18, JPL has earned transmission income of Rs.45.44 Crore from this line.
Total revenue of JPL during FYâ18, was Rs.4,358.30 Crore and loss after tax was Rs.673.29 Crore.
JINDAL SHADEED IRON & STEEL LLC, OMAN
Jindal Shadeed Iron & Steel LLC, Oman, a subsidiary of Jindal Steel & Power Ltd. production jumped by 26% in FY 18 (y-o-y). It produced 1.67 Mt of steel during FY18, as against 1.33 Mt FY17. Value added products like Rebar and Round production jumped by 114% and 144% respectively. The Rebar sales jumped by 117% during FYâ18 (to 973 K MT), round sales also jumped by 143% during FYâ18 (to 349 K MT) It has recorded sales of Rs.5,686.54 Crore and earned a profit after tax of Rs.832.03 Crore in the Financial Year 2017-18.
With a view to ensure availability of coal and other raw materials, the Company has, through its other subsidiaries, acquired exploration / mining interests in Botswana, Indonesia, Madagascar, Namibia, Liberia, Mauritania, Zambia and Tanzania.
DIRECTORS AND KEY MANAGERIAL PERSONNEL
Directors:
Dr. Amar Singh and Mr. Kuldip Chander Sood were appointed as Additi onal Directors in the category of Independent Director w.e.f. April 25, 2017. The Shareholders of the Company at the AGM held on September 22, 2017, approved their appointment in the category of Independent Director for a period of three years effective from April 25, 2017.
Mr. Kulip Chander Sood ceased to be the Director of the Company consequent to his demise on December 2, 2017 and Dr. Amar Singh resigned from the directorship due to his personal grounds w.e.f. May 2, 2018.
Mr. Pradyumna Singh Dubey, was appointed as Nominee Director of IDBI Bank Limited w.e.f. October 3, 2017 in place of Mr. Deepak Sood, who resigned from the office of Director w.e.f. August 10, 2017 consequent to withdrawal of Nomination by IDBI Bank Limited. Mr. Pradyumna Singh Dubey also resigned from the directorship due to his personal grounds w.e.f. May 2, 2018.
The Shareholders of the Company, at the AGM held on September 22, 2017, also approved the re-appointment of Mr. Naveen Jindal as the Wholeti me Director designated as Chairman, Mr. Dinesh Kumar Saraogi and Mr. Rajeev Bhadauria as Wholetime Directors of the Company for a period of 3 years w.e.f. October 1, 2017, November 9, 2017 and May 27, 2018 respectively and appointment of Mr. Anjan Barua, Nominee Director of State Bank of India and Mr. Deepak Sood, Nominee Director of IDBI Bank Limited, who were appointed as Additional Directorâs by the Board, as Directors of the Company.
Upon completion of 5 year term, Mr. Ravi Uppal, ceased to be in the office of Managing Director and Group CEO w.e.f. September 30, 2017.
In accordance with the provisions of Section 152 of the Act and in terms of the Articles of Association of the Company, Mr. Dinesh Kumar Saraogi is retiring by rotation at the ensuing AGM and is eligible, for re-appointment.
Your Board recommends the re-appointment of Mr. Dinesh Kumar Saraogi. The parti culars in respect of Mr. Dinesh Kumar Saraogi as required under Regulation 36(3) of Listing Regulations, are mentioned elsewhere in the Notice of AGM.
Key Managerial Personnel:
During the period under review:
i. Mr. Jagadish Patrra, appointed as Vice President & Company Secretary w.e.f. August 8, 2017 to fill the vacancy caused by the resignation of Mr. Murli Manohar Purohit.
ii. Mr. Deepak Sogani, was appointed as Chief Financial Officer of the Company w.e.f. December 19, 2017 to fill the vacancy caused by the resignation of Mr. Rajesh Bhatia.
DECLARATION BY INDEPENDENT DIRECTORS
The Company has received declarati ons from each Independent Directors that they meet the criteria of independence prescribed under Secti on 149 read with Schedule IV of the Act and rules made thereunder, as well as Regulati on 16(1)(b) of the Listing Regulations. The Board considered the independence of each of the Independent Director in terms of above provisions and is of the view that they fulfill/meet the criteria of independence.
MEETINGS OF THE BOARD AND COMMITTEES
The Board of Directors met 9 (Nine) times during the period under review. The details of number of meetings of the Board and various Committees of your Company are set out in the Corporate Governance Report which forms part of this report.
SECRETARIAL STANDARDS
The Directors state that applicable secretarial standards i.e. SS-1 and SS-2, relating to meetings of the board of the directors and general meetings, have been duly followed by the Company.
REMUNERATION POLICY
In accordance with the provisions of Section 178 of the Act and Part D of Schedule II of the Listing Regulations, the policy on Nomination and Remuneration of Directors, KMPs and Senior Management of your Company is uploaded on the website of the Company and may be accessed under the Corporate Governance section at: https://www.jindalsteelpower.com/img/admin/report/ pdf/ Remuneration_Policy.pdf
PARTICULARS OF EMPLOYEES AND RELATED DISCLOSURES
In terms of the provisions of Section 197(12) of the Act read with Rules 5(2) and 5(3) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, as amended, a statement showing the names and other particulars of the employees drawing remunerati on in excess of the limits set out in the said rules and the disclosures relating to remuneration and other details required under the provisions of Section 197(12) of the Act read with Rule 5(1) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 is annexed as Annexure-A to this report.
STATUTORY AUDITORS
M/s Lodha & Co., Chartered Accountants (ICAI Firm Registration No. 301051E), New Delhi, were appointed as the Statutory Auditors for a period of 5 years from the conclusion of 37th AGM till the conclusion of 42nd AGM of the Company, subject to ratification at each AGM by the shareholders of the Company.
Provisions of sub section 1 of the Section 139 of the Act provided that the appointment of Statutory Auditors shall be ratified at the each AGM of the Company. Ministry of Corporate Affairs vide its notification dated May 7, 2018, appointed May 7, 2018, as the date of the Commencement of the provisions of Section 40 of the Companies (Amendment) Act, 2017 and accordingly, omitted the proviso to sub-section 1 of the Section 139 of the Act. Therefore, the appointment of Statutory Auditors need not to be ratified at every AGM. The Statutory Auditors have confirmed that they are not disqualified from continuing as the auditor of the Company.
Explanations on qualification, reservation or adverse remark by the Statutory Auditors:
A) During the Financial Year 2014-15, the Honâble Supreme Court vide its judgement dated August 25, 2014 read with its order dated September 24, 2014 had cancelled the allocation of certain Coal Blocks, which were allotted from year 1993 onwards through Screening Committee. The Honâble Supreme Court also directed the Coal Block allottees to pay an additional levy of Rs.295 per MT on the coal extracted from the operational mines. The Honâble Supreme Court of India declined to review the petitions filed by the Company and its subsidiary company JPL against the order challenging cancellation of coal blocks and imposing additional levy of Rs.295 per MT on coal extracted with retrospective effect.
In the meanwhile, the Company has paid Rs.3,267.43 Crore (including Rs.1,185.20 Crore paid by its subsidiary company JPL) under protest on the Run of Mine coal extracted from the operational mines right from the commencement of coal mining operations till March 31, 2015. Out of the said amount, on the basis of the legal advice obtained by the Company that additi onal levy of Rs.295 per MT is payable only on coal extracted and is not payable on shale, rejects and ungraded middlings, an amount of Rs.1,911.64 Crore (including Rs.1,103.87 Crore related to its subsidiary company JPL) computed on coal extracted excluding shale, rejects and ungraded middlings has been shown as an exceptional item in the Statement of Profit and Loss. The balance amount of Rs.1,355.79 Crore (including Rs.81.33 Crore related to its subsidiary Company JPL) being additional levy of Rs.295 per MT on shale, rejects and ungraded middlings has, accordingly, been shown as recoverable.
The Board of the Company, based on the legal advice, is sanguine of obtaining appropriate relief in respect of the same.
B) The Board is of the view that as of now there is no requirement for adjustment to the carrying value of investment made in mining assets by the Company and difference, if any shall be accounted for when the matter is finally settled.
SECRETARIAL AUDITORS
M/s RSMV & Co., Company Secretaries, New Delhi (CP No. 11571) were appointed to conduct the Secretarial Audit for the financial year 2017-18 The Secretarial Audit Report is annexed herewith as Annexure-B to this Report.
The Secretarial Audit Report does not contain any qualification, reservation, adverse remark or disclaimer.
COST AUDITORS
In terms of sub-section (1) of Section 148 of the Act read with Companies (Cost Records and Audit) Rules, 2014, as amended from time to time, the Company is required to maintain the cost records and accordingly such accounts and records are made and maintained.
M/s Ramanath Iyer & Co., (FRN 000019), Cost Accountants, were appointed as the Cost Auditors of the Company for auditing the cost records of the Company for the financial year 2018-19, subject to ratification of remuneration by the Shareholders of the Company in the 39th AGM of the Company. Accordingly, an appropriate resolution seeking ratification of the remuneration for the financial year 2018-19 of M/s Ramanath Iyer & Co. is included in the Notice convening the 39th AGM of the Company.
RISK MANAGEMENT
The Company has in place a robust risk management framework which identifies and evaluates business risks and opportunities. The Company recognizes that these risks need to be managed and mitigated to protect the interest of the shareholders and stakeholders, to achieve business objectives and enable sustainable growth. The risk management framework is aimed at effectively mitigating the Companyâs various business and operational risks, through strategic acti ons. Risk management is embedded in our critical business activities, functions and processes. The risks are reviewed for the change in the nature and extent of the major risks identified since the last assessment. It also provides control measures for risk and future action plans.
INTERNAL FINANCIAL CONTROLS
The Company has in place adequate internal financial controls with reference to financial statements and such internal financial controls are operating effectively. Your Company has adopted policies and procedures for ensuring the orderly and efficient conduct of its business, including adherence to the Companyâs policies, safeguarding of its assets, preventi on and detection of frauds and errors, accuracy and completeness of the accounting records, and timely preparation of reliable financial disclosures.
CORPORATE SOCIAL RESPONSIBILITY
During FYâ18, your Company has won the following awards for its corporate social responsibility (âCSRâ) initiatives, in particular for Women Empowerment, Health, Environment Management Services and Social Development In itiati ves work done by JSPL Foundation, the CSR arm of the Company. Under the able leadership of Mrs. Shallu Jindal , JSPL Foundation has touched the lives of 1.5 million people across India covering more than 9 locations.
(i) Odisha Inc CSR Leadership Award 2017 for its outstanding work in implementing social development initiatives
(ii) Best CSR practices Award by Odisha CSR forum
(iii) 2nd Kalinga CSR Excellence Awards by IQEMS (Institute of Quality and Environment Management Services)
(iv) Mediabytes CSR Excellence Awards 2017 for sustainable CSR Projects (Women Empowerment and Health).
The Health, Safety, CSR and Environment Committee of the Board of Directors of the Company overseas the implementation of CSR Policy of the Company.
The Annual Report on the CSR activities for the financial year 2017-18 is annexed herewith as Annexure-C to this report.
SIGNIFICANT AND MATERIAL ORDERS PASSED BY THE REGULATORS OR COURTS
No significant material order(s) passed by the regulators/ courts which would impact the going concern status of the Company and its future operation during the year under review.
The matter related to the Company Subsidiary, Jindal Power Limited, with respect to auction of Gare Palma IV/2 and IV/3 coal mine continues to be sub-judice before the Honâble Supreme Court, wherein direction for maintaining status quo has been passed. Since, earlier de-allocation of coal blocks, the Company has been fully geared and catering to its coal requirements through coal linkage, e-auctions etc. Further, the Company also intends to participate in future coal block auctions.
DIRECTORSâ RESPONSIBILITY STATEMENT
Pursuant to Section 134(3) (c) of the Act, your Directors state that:
(a) In the preparation of the annual accounts for the year ended March 31, 2018, the applicable accounting standards and Schedule III to the Act, have been followed and there are no material departures from the same;
(b) The Directors have selected such accounting policies and applied them consistently and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of your Company as at March 31, 2018 and of the loss of the Company for the year ended on that date;
(c) The Directors have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities;
(d) The Directors have prepared the annual accounts on a going concern basis;
(e) The Directors have laid down internal financial controls to be followed by the Company and that such internal financial controls are adequate and are operating effectively; and
(f) The Directors have devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems are adequate and operating effectively.
OTHER INFORMATION
Business Responsibility Report
As stipulated under Listing Regulations, a separate section titled âBusiness Responsibility Reportâ forms part of this Annual Report which describes the initiatives taken by your Company from environmental, social and governance perspective.
Management Discussion and Analysis Report
As stipulated under Listing Regulations, a separate section titled âManagement Discussion and Analysis Reportâ, is annexed herewith as Annexure-F to this report.
Conservation of Energy, Technology Absorption and Foreign Exchange Earnings and Outgo
The particulars related to conservation of energy, technology absorption and foreign exchange earnings and outgo as required to be disclosed under Section 134(3) (m) of the Act read with Rule 8 of the Companies (Accounts) Rules, 2014 is annexed herewith as Annexure - D to this Report.
Corporate Governance
Your Company is committed to achieve the highest standards of Corporate Governance and adhere to the Corporate Governance requirements set out by the Securities and Exchange Board of India. Your Company has also implemented several best Corporate Governance practices as prevalent globally.
The report on Corporate Governance as stipulated under the Listing Regulations for the Financial Year 2017-18 and a certificate issued by M/s RSMV & Co., Company Secretaries in Practice confirming compliance with the conditions of Corporate Governance is annexed herewith as Annexure - G to this report.
Whistle Blower Policy/Vigil Mechanism
Your Company has formulated a robust vigil mechanism to deal with instances of unethical behavior, actual or suspected, fraud or violation of Companyâs code of conduct or ethics policy. The details of policy is explained in Corporate Governance Report and also uploaded on website of the Company under Corporate Governance section at: https://www.jindalsteelpower.com/img/admin/report/ pdf/whistle.pdf.
Prevention of Sexual Harassment at Workplace
As per the requirement of the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 and the Rules made thereunder, your Company has constituted an Internal Complaints Committee having designated independent member(s) to redress complaints regarding sexual harassment. During the year, no complaint regarding Sexual Harassment has been reported.
Extract of the Annual Return
In accordance with the provisions of Sections 92 and 134(3)(a) of the Act read with the Companies (Management and Administration) Rules, 2014, the extract of the Annual Return in Form No. MGT - 9, is annexed herewith as Annexure-E to this report.
Cautionary Statement
Statements in the Boardâs Report and the Management Discussion & Analysis describing the Companyâs objectives, expectations or forecasts may be forward looking within the meaning of applicable Securities Laws and Regulations. Actual results may differ materially from those expressed in the statement. Important factors that could influence the Companyâs operations include global and domestic demand and supply conditions affecting selling prices of finished goods, input availability and prices, changes in Government Regulations, Tax Laws, Economic Developments within the country and other factors such as litigation and industrial relations.
Acknowledgements
The Directors wish to place on record their appreciation for the sincere services rendered by companyâs staffs and workers at all levels. Your Directors also wish to place on record their appreciation for the valuable co-operation and support received from the Government of India, various State Governments, the Banks/ Financial Institutions and other stakeholders such as, shareholders, customers and suppliers, among others. The Directors also commend the continuing commitment and dedication of the employees at all levels, which has been critical for the Companyâs success. The Directors look forward to their continued support in future.
For and on behalf of the Board of Directors
Place: New Delhi Naveen Jindal
Date : August 9, 2018 Chairman
DIN: 00001523
Mar 31, 2017
Dear Members,
The Board of Directors are pleased to present the Company''s 38th Annual Report along with the Audited Financial Statements, both standalone and consolidated, for the Financial Year ended March 31, 2017.
FINANCIAL RESULTS
The Company''s financial performance for the year ended March 31, 2017 is summarized below:
_(Rs,in crore)
Particulars |
Standalone |
Consolidated |
||
2015-16 |
2015-16 |
|||
Total Income |
15,502.49 |
14,716.81 |
22,706.23 |
20,524.82 |
EBITDA |
2,441.08 |
1,552.05 |
4,658.03 |
3,436.87 |
Profit/(Loss) before tax after exceptional items |
(1,456.98) |
(2,330.07) |
(3,042.90) |
(3,963.71) |
Less: Provision of Tax |
470.53 |
911.54 |
502.68 |
877.46 |
Profit/(Loss) after tax |
(986.45) |
(1,418.53) |
(2,540.22) |
(3,086.25) |
Balance brought forward from previous year |
20,112.44 |
21,768.51 |
28,254.16 |
32,049.18 |
Surplus carried to Balance Sheet |
(983.76) |
(1,407.69) |
(2,662.42) |
(3,831.54) |
INDIAN ACCOUNTING STANDARDS
Ministry of Corporate Affairs (MCA) has vide its notification dated February 16, 2015, notified the applicability of Indian Accounting Standards ("Ind AS") to be applicable on listed companies and certain class of companies, for the Accounting period beginning from April 1, 2016, with comparatives to be provided for the period ended on March 31, 2016.
The Company has adopted Indian Accounting Standard (''Ind AS'') with effect from April 1, 2016 and accordingly these financial results along with the comparatives have been prepared in accordance with the recognition and measurement principles stated therein, prescribed under Section 133 of the Companies Act, 2013 read with the relevant rules issued there under.
MATERIAL CHANGES AFFECTING FINANCIAL POSITION
There have been no material change(s) and commitment(s) affecting the financial position of the Company between the end of the financial year and date of this Report. There has been no change in the nature of business of the Company.
OPERATIONAL HIGHLIGHTS
Your Company has always aspired to enhance its participation in the socio- economic development of the nation and will continue to dream bigger with continuously working towards building a nation of our dreams. In May 2017, your Company dedicates to the nation 6 MTPA Integrated Steel Plant at Angul, Odisha.
Sale of Steel Product in the domestic market was 28.41 Lakhs MT as compared to 30.59 Lakhs MT in the previous year showing a decrease of 7% and total export was 5.09 Lakhs MT as compared to 2.35 Lakhs MT in the previous year showing an increase of 117%.
The Company completed all major iron and steel making installations at the 6 MTPA Integrated Steel Plant at Angul, Odisha.
It comprises :
- India''s largest 4 MTPA Sinter Plant, 4554 cum Blast Furnace and
0.9 MTPA Coke Oven.
- World''s first 1.8 MTPA Direct Reduced Iron (DRI) Plant based on Coal Gasification Process (CGP).
- World'' largest 225,000 Nm3/ Hr Coal Gasification Plant for Steel making.
- Steel Melting Shop (SMS) with 250 T EAF.
- A 1.4 MTPA Bar Mill.
- India''s most advanced 1.2 MTPA Plate Mill, capable of producing plates unto 5 Meter width.
- World''s fastest 2.3 MTPA Billet Castor, (capacity speed 3.6 Meters/ Minute).
- A 810 MW Captive Power Plant.
- Air Separation Unit (2x1200 TPD)
- Lime Dolomite Plant (2x500 TPD)
- Coal Washery (6 MTPA) and
- Process Boilers (3x1800 TPH)
The completion of the 4554 cum Blast Furnace was done at a significantly lower capital investment as compared to projects of similar scale. The capacity addition would further enhance the cost efficiencies of steel making. The economies of scale imparted by the capacity additions and their optimum utilization would effectuate Company''s debt reduction roadmap.
PRODUCTION HIGHLIGHTS
Steel: Production of finished Steel products during the year under review was 29.71 Lakh MT, as against 29.48 Lakh MT in the previous year whereas production of semi steel products was 34.75 Lakh MT as against 34.65 Lakh MT in the previous year.
Power: During the year under review, 5465 million Kwh of Power was generated, as against 5882 million Kwh of power in the previous year.
Sponge Iron: Production of Sponge Iron during the year under review was 17.66 Lakh MT, as against previous year''s production of 19.94 Lakh MT.
Pellet: 64.63 Lakh MT of Pellets were produced during the year under review, as against 45.89 Lakh MT in the previous year
Machinery: Machinery division in Raipur unit produced 998 MT of castings and has done production of 11317 MT, as against 1931 MT and 13966 MT respectively in the previous year
Mining: The Mining of sized ore and fines at Tensa in Odisha was 5.96 Lakh Ton and 21.27 Lakh Ton respectively as against previous year mining of 6.22 Lakh Ton and 23.01 Lakh Ton respectively.
Detailed discussion on the operations have been given elsewhere in the report.
PROJECTS COMPLETED
Steel Plant at Angul, Odisha- Phase- l
Your Company has completed following operational facilities under Phase - l of 6 MTPA integrated Steel plant at Angul in the state of Odisha:
a) Steel Melting Shop: Your Company has 250 T capacity Electric Arc Furnace, is one of the largest in India. This art of technology Steel melt shop is equipped with Laddle furnace, RH, VD, Billet Caster and Slab Caster facility which can produce most of the grades available in the world.
b) Direct Reduced Iron Plant (DRI) and Coal Gasification Plant:
The 1.8 MTPA DRI Plant is unique one in the world which utilizes Syngas (Gas produced from Non coking coal through Coal Gasification Plant) for reduction process and has facilities for discharging Hot DRI as well as Cold DRI.
c) Plate Mill: Your Company has one of the widest plate mill (5mtrs. wide) plants with 1.2 MTPA capacity. This plate mill has various certification for different grades of Plates for sectors such as Defense, Wind Mill, Ship Building, Sour Application Pipe Lines, Yellow Goods etc. Plate mill has successfully developed number of different special grade plates. There are very few manufacturers available in the world who can produce similar kind of grade plates.
These plants are supported by 810MW Captive Power Plant (6x135 MW), Air Separation Unit (2x1200 TPD), Lime Dolomite
Plant (2x500 TPD), Coal Washery (6 MTPA) and Process Boilers (3x1800 TPH).
Steel Plant at Angul, Odisha -Phase lB
Your Company is expanding the steel plant (Phase IB) at Angul at brisk pace from the present 1.5 MTPA to 6 MTPA through the conventional integrated steel plant route i.e Coke Oven and by product plant, sinter plant, blast furnace, steel melting shop - II, bar mill and other allied units.
Following operational facilities under Phase - IB were commissioned during the FY 2016-17:
a) Bar Mill: State of the art 1.4 Million Ton per annum Bar Mill with Integrated Hot Charging Billet arrangement which can produce Rebar''s from 8mm to 40 mm. It was commissioned on July 9, 2016.
b) Coke Oven: 1st Battery of 2 MTPA Coke Oven was commissioned on February 16, 2017 and being set up with latest technology supplied by Sinosteel Equipment & Engineering Co. Ltd., China. The technology is suitable of handling Coal blend VM up-to 2930% and maximum Sulphur of 1.2%. This will help in reducing the cost of Blend and provide us with wider options for coal sourcing.
Also, India''s biggest Blast Furnace (4554 M3) along with Sinter Plant and 2nd Coke Oven Battery Plant have been commissioned in May, 2017.
Your Company is in advance stage of completion for our BOF Plant and expected to be completed in September, 2018.
Steel Plant at Raigarh, Chhattisgarh
To enhance the plant''s productivity and output, your Company has completed the following new project in Raigarh during the financial year under review:
Rail Head Hardening project for producing rail of high speed application and metro rails and for export market . The technology has been supplied by SMS Meer of Germany.
Machinery Division at Raipur, Chhattisgarh
Your Company has implemented following facilities during the financial year under review:
1. Installed shield (steel door) to safeguard the welding process at time of production in Process Equipment Division .
2. Installed new 90 degree attachment for Sanco Machine in Machine Shop to cater to burgeoning requirements of Machinery Equipment Division customers.
3. Sewage Treatment plant (of capacity 500 KLD) has been installed at Machinery Division, Raipur. The treated water is utilized for Green belt development in and around the unit.
4. Enhanced capability of Quality Lab by procuring equipment such as 360 degree Laser Machine.
5. Enhanced capability of Paint Shop by procuring equipment to carry out Salt contamination test and Dolly test.
Shadeed Iron & Steel, Oman Rolling Mill:
Jindal Shadeed Iron & Steel LLC, Oman, a Subsidiary Company, has started commercial production of the world''s largest and most modern state-of-the-art 1.4 MTPA Rebar Mill from May 1, 2016 to supply finished steels, the first time in its five-year-history with the imminent production of Rebar''s for the construction industry to cater mainly to domestic and middle east countries.
Highlights:
- Total production of Steel Melting Shop (SMS) increased from 10.54 lakh tons in FY 2015-16 to 13.26 lakh tons in FY 2016-17;
- Production of value added grade rounds increased from 0.83 lakh tons in FY 2015-16 to 1.43 lakh in FY 2016-17;
- Highest monthly production in SMS was recorded in March 2017 at 143,831 tons whereas highest monthly production till end of FY 2015-16 was 126,311 tons;
- Rejection in SMS reduced from 0.93% in FY 2015-16 to 0.54% in FY 2016-17;
- Rebar mill started commercial production in April 2016 and total production was 4.54 lakh tons in FY 2016-17;
- Rebar mill has received product certification from Cares U.K., Dubai Commercial Laboratories (DCL), SASO and BIS which enables rebar product to qualify for prestigious projects and command premium in the market;
- Highest monthly production in Rebar mill was recorded in March, 17 at 71,302 ton. Jindal Shadeed has established itself as Oman''s largest rebar producer and seller in Q4 FY 2016-17;
- DRI Production decreased slightly from 15.09 lakh tons in FY 2015-16 to 14.39 lakh tons in FY 2016-17. This was due to sharing of allocated natural gas quota with Rebar mill;
- Cut & Bend Plant of 3,000 tons per month capacity commissioned in February 2017.
Patratu, Jharkhand
- Successfully completed "Railway Overhead Electrification Project" from Bhurkunda to Plant premises resulting in reduction by 8 Hours during inward rake movement;
- PGP plant fully completed (automation and balance erection jobs). All the 10 asifiers successfully commissioned and both mill furnaces are successfully fed by Producer Gas.
- WRM furnace maintenance carried out in 28 days against a plan of 35 days with in-house fabrication of skids and posts. Modification of burners for feeding producer gas also completed during the same period.
- Coil straightening and cutting machine installed in rebar service centre which resulted in increase in production by 200%.
PROJECTS UNDER IMPLEMENTATION
Steel Plant at Raigarh, Chhattisgarh
Your Company has the following projects under implementation with a view to increase the efficiency of steel plants at Raigarh:
1. Installation of new reheating furnace in Rail and Universal Beam Mill to increase the output. The furnace shall be using Blast Furnace gas to reduce the fuel cost.
2. Up gradation of Rail Finishing Facility at RUBM for Capacity and dispatch Enhancement.
Machinery Division at Raipur, Chhattisgarh
In order to enhance the capacity and productivity of the division, your Company has planned the following additional equipment/ facilities:
- Plate Bending Machine for Higher Thickness bending of plates up to 90 mm (Thk) & 3100 mm (Wid)
DIVIDEND
The Board of Directors of your Company had approved the Dividend Distribution Policy in line with the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. The Policy is uploaded on the Company''s website at http:// www.jindalsteelpower.com.
The Board of Directors of your Company has not recommended any Dividend during the year in view of losses.
The unclaimed dividend of '' 93,57,733/- (Rupees Ninety Three Lakh Fifty Seven Thousand Seven Hundred and Thirty Three Only) pertaining to the Financial Year 2008-09, has been transferred to the Investor Education and Protection Fund, (IEPF), Government of India. The details including last date for claiming of unclaimed / unpaid dividend amount are given at the end of the Notice of the Annual General Meeting.
CREDIT RATING
Your Company''s domestic credit rating is "D" for the long-term debt/facilities/non-convertible debentures, short term debt/ facilities including working capital facilities rated by Credit Analysis & Research Ltd. (CARE), CRISIL and ICRA Limited.
CONSOLIDATED FINANCIAL STATEMENTS
The Consolidated Financial Statements of your Company for the Financial Year 2016-17, is prepared in compliance with the applicable provisions of the Companies Act, 2013, Indian Accounting Standards (Ind AS) and SEBI (LODR) Regulations, 2015.
SHARE CAPITAL
The Authorized Share Capital of the Company is '' 200,00,00,000/-(Rupees Two Hundred Crore only) divided into 200,00,00,000 (Two Hundred Crore) equity shares of '' 1/- (Rupee One) each.
As the Company is exploring various possibilities of raising funds including issuance of capital through various means and modes, the Board of Directors of your Company has recommended to increase the Authorized Share Capital from Rs, 200,00,00,000/- (Rupees Two Hundred Crore only) divided into 200,00,00,000 (Two Hundred Crore) equity shares of Rs, 1/-(Rupee One) each to Rs, 300,00,00,000 (Rupees Three Hundred Crore only) comprising 200,00,00,000 (Two Hundred Crore) equity shares of Rs, 1/-(Rupee One) each and 1,00,00,000 (One Crore) Preference Shares of Rs, 100/- (Rupees One Hundred) each.
Necessary resolutions in this regard have been included in the notice convening the ensuing Annual General Meeting of the Company.
During the year the paid up share capital of the Company has increased from Rs, 91,49,03,800/- (Rupees Ninety One Crore Forty Nine Lakh Three Thousand and Eight Hundred only) comprising of 91,49,03,800 (Ninety One Crore Forty Nine Lakh Three Thousand and Eight Hundred) equity shares of Rs, 1/- (Rupee One) each to Rs, 91,50,24,234/- (Rupees Ninety One Crore Fifty Lakh Twenty Four Thousand Two Hundred and Thirty Four only) comprising of 91,50,24,234 (Ninety One Crore Fifty Lakh Twenty Four Thousand Two Hundred and Thirty Four) equity shares of Rs, 1/- (Rupee One) each.
Your Company has an Employee Share purchase Scheme namely JSPL ESPS 2013. Relevant disclosures pursuant to Securities and Exchange Board of India (Share Based Employee Benefits) Regulation, 2014 are given as Annexure - A to this report.
NON-CONVERTIBLE DEBENTURES
The aggregate outstanding amount of Non-Convertible Debentures (NCDs) of the Company as on March 31, 2017 was Rs, 3612 crore.
During the year under review, NCDs amounting to Rs, 300 crore have been redeemed and paid on due date. There are delays in servicing the interest on NCDs The Company had paid all the dues including interest on the NCDs during the financial year 2016-17. Necessary disclosures in this connection under SEBI (LODR) Regulations, 2015 have been made to the Stock Exchanges where the shares of the Company are listed.
DEPOSITS
The Company has not accepted/received any deposits during the year under report falling within the ambit of Section 73 of the Companies Act, 2013 and the Companies (Acceptance of Deposits) Rules, 2014.
RELATED PARTY TRANSACTIONS
In terms of Section 188 of the Companies Act, 2013 read with rules framed thereunder and Regulation 23 of SEBI (LODR) Regulations,
2015 your Company has a Related Party Policy in dealing with related party transactions. The policy may be accessed under corporate governance section on the website at the following link:
http://www.jindalsteelpower.com/img/admin/report/pdf/RPT_
Policy.pdf
Particulars of Contracts or arrangements entered into by the Company with the related parties referred to in Section 188(1) of the Companies Act, 2013 read with Regulation 23 of SEBI (LODR) Regulations, 2015, in prescribed Form AOC - 2 is attached herewith as Annexure - B.
All the related party transactions that were entered and executed during the year under review were on arm''s length basis and in the ordinary course of business and within the permissible framework of Section 188 of the Companies Act, 2013, and Rules made thereunder read with Regulation 23 of SEBI (LODR) Regulations, 2015.
PARTICULARS OF LOANS, GUARANTEES OR INVESTMENTS
Details of Loans, Guarantees, Securities and Investments covered under the provisions of Section 186 of the Companies Act, 2013 are given in the Notes to the Financial Statements.
SUBSIDIARIES, ASSOCIATES AND JOINT VENTURES
Your Company follows its global ambition to build a premium brand name for its quality steel solutions, expertise and with a view of expansion and diversification; it has created multiple subsidiaries, domestic and abroad, associates and joint ventures for facilitating these operations in various countries.
A separate statement containing salient features of Financial Statements of Subsidiaries, Associates and Joint Ventures of your Company forms part of the Consolidated Financial Statements in terms of Section 129 of the Companies Act, 2013.
Name of the Companies which have become or ceased to be its subsidiaries, joint ventures or associate companies have been mentioned in the notes to the accounts.
The Financial Statements of Subsidiary Companies are kept open for inspection by the shareholders at the Registered Office of your Company during business hours on all days except Saturdays, Sundays and public holidays upto the date of the Annual General Meeting (AGM) as required under Section 136 of the Companies Act, 2013. Any member desirous of obtaining a copy of the said financial statements may write to the Company at its Registered Office or Corporate Office. The Financial statements including the consolidated Financial statements and all other documents required to be attached to this report have been uploaded on the website of your Company viz. www.jindalsteelpower.com
Your Company has framed a policy for determining "Material Subsidiary" in terms of Regulation 16(c) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The policy on Material Subsidiary has been uploaded on the Company''s website at the following link:
http://www.jindalsteelpower.com/img/admin/report/pdf/Policy_
on_determining_material_subsidiary.pdf
The details of business operations / performance of major subsidiaries are as below:
JINDAL POWER LIMITED
Jindal Power Limited, a subsidiary company (JPL) is operating 3,400 MW power plant at Tamnar, Chhattisgarh.
During the year under review :
- 1000 MW (4x250 MW) power plant generated 4,483 million units of power representing 51.17% Plant Load Factor (PLF) as against 5,169 million units of power representing 58.85% PLF in the previous year.
- 600 MW of the 2,400 MW (4X600 MW) thermal power plant generated 4694 million units of power in FY 2016-17.
Jindal Power Limited (JPL) 258 km, 400 kV double-circuit transmission line is being used as an interstate transmission line belonging to the Western Region Interstate Transmission System. The Central Electricity Regulatory Commission (CERC) has granted a transmission license to the Company for carrying on business activity and has fixed provisional tariff for its use. During the year under review, JPL has earned transmission income of Rs, 45.44 crore from this line.
Total revenue of JPL during the year under review was Rs, 3,516.27 crore and the loss after tax was Rs, 667.84 crore.
SHADEED IRON & STEEL LLC, OMAN
Shadeed, Iron & Steel LLC, Oman, a subsidiary of Jindal Steel & Power Ltd., is operating 1.5 MTPA Brigutted Iron plant and Steel Melt Shop. It has recorded sales of Rs, 3,487.50 crore in the Financial Year 201617 and earned a profit after tax of Rs, 191.57 crore.
JINDAL MINING SA (PTY) LIMITED, SOUTH AFRICA
The operating coal mine, recorded sales of Rs, 202.75 crore in Financial Year 2016-17 and incurred a loss of Rs, 13.75 crore.
JSPL MOZAMBIQUE MINERALS LDA, MOZAMBIQUE
The operating coal mine, recorded sales of Rs, 129.84 crore in Financial Year 2016-17 and incurred a loss of Rs, 2.45 crore.
WOLLONGONG COAL LIMITED (FORMERLY GUJARAT NRE COKING COAL AUSTRALIA LIMITED)
The operating coal mine recorded sales of Rs, 181.44 crore in Financial Year 2016-17 and incurred a loss of Rs, 290.46 crore.
With a view to ensure availability of coal and other raw materials, the Company has, through its other subsidiaries, acquired exploration / mining interests in Botswana, Indonesia, Madagascar, Namibia, Liberia, Mauritania, Zambia and Tanzania.
DIRECTORS AND KEY MANAGERIAL PERSONNEL APPOINTMENT/RE- APPOINTMENT
Directors
The Board of Directors of your Company co-opted:
i. Mr. Deepak Sood (DIN: 02331191) as Nominee Director of IDBI Bank Limited w.e.f. December 8, 2016.
ii. Mr. Anjan Barua, (DIN: 01191502) as a Nominee Director of State Bank of India w.e.f. February 14, 2017
iii. Dr. Amar Singh (DIN: 07800513) as an Additional Director in the category of Independent Director w.e.f. April 25, 2017
iv. Mr. Kuldip Chander Sood (DIN: 01148992) as an Additional Director in the category of Independent Director w.e.f. April 25, 2017
Wholetime Directors
On the recommendation of the Nomination & Remuneration Committee and in terms of Sections 196, 197, 198 and 203 read with Schedule V and all other applicable provisions of the Companies Act, 2013 and the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, the Board of Directors of your Company recommends the re-appointment of :
i. Mr. Naveen Jindal (DIN: 0001523) as Wholetime Director, designated as Chairman of the Company, for a period of 3 (three) years w.e.f. October 1, 2017.
ii. Mr. Rajeev Rupendra Bhadauria (DIN 00376562) as Wholetime Director of the Company for a period of 3 (three) years w.e.f., May 27, 2018.
iii. Mr. Dinesh Kumar Saraogi (DIN 06426609) as Wholetime Director of the Company for a period of 3 (three) years w.e.f., November 9, 2017.
Retirement by Rotation
In accordance with the provisions of Section 152 of the Companies Act, 2013 and in terms of the Articles of Association of the Company, Mr. Naveen Jindal and Mr. Rajeev Rupendra Bhadauria are retiring by rotation at the ensuing Annual General Meeting and being eligible, seek re-appointment.
Necessary Resolutions in respect of the appointment of Directors mentioned above are included in the Notice convening the ensuing Annual General Meeting. Your Board recommends the appointment/ re-appointment of Mr. Naveen Jindal, Mr. Rajeev Rupendra Bhadauria, Mr. Dinesh Kumar Saraogi, Mr. Kuldip Chander Sood, Dr. Amar Singh, Mr. Deepak sood and Mr. Anjan Barua. The particulars in respect of these Directors as required under Regulations 36(3) of SEBI (LODR) Regulations 2015, are mentioned elsewhere in the Notice of Annual General Meeting.
RESIGNATIONS
Directors
i. Mr. Chandan Roy and Mr. Haigreve Khaitan resigned from the position of Independent Directors of the Company w.e.f. June, 7, 2016 and December 7, 2016 respectively.
ii. Mr. Shalil Mukund Awale, Nominee Director of IDBI Bank Ltd., resigned from the Board of the Company w.e.f December 8,
2016 consequent to withdrawal of his nomination from IDBI Bank Limited.
Key Managerial Personnel
During the period under review:
i. Mr. Murli Manohar Purohit was appointed as Company Secretary & Compliance Officer of the Company w.e.f. October
10, 2016 to fill the vacancy caused by the resignation of the Company Secretary appointed earlier. He subsequently resigned from the Company w.e.f. May 31, 2017.
ii. Mr. Kannabiran Rajagopal, resigned from the position of Group Chief Financial Officer of the Company w.e.f. November 21,
2016. Mr. Rajesh Bhatia, who was appointed in his place as the Chief Financial Officer of the Company resigned from the Company w.e.f. June 27, 2017.
Your Directors would like to record their deep sense of appreciation for the contributions made by the above Directors and Key Managerial Personnels during their respective tenures.
MEETINGS OF THE BOARD AND COMMITTEES
The Board of Directors met 10 (ten) times during the period under review. The details of number of Meetings of the Board and various Committees of your Company are set out in the Corporate Governance Report which forms part of this report. The intervening gap between the meetings was within the period prescribed under the Companies Act, 2013, the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 and Secretarial Standards on Meeting of the Board of Directors as issued by The Institute of Company Secretaries of India.
REMUNERATION POLICY
In accordance with the provisions of Section 178 of the Companies Act, 2013 and Part D of Schedule II of SEBI (LODR) Regulations,
2015, the policy on Nomination and Remuneration of Directors, KMPs and Senior Management of your Company is uploaded on the website at the following link:
http://www.jindalsteelpower.com/img/admin/report/pdf/
Remuneration_Policy.pdf
PARTICULARS OF EMPLOYEES RELATED DISCLOSURES
Details as required under Section 197(2) read with Rule 5(2) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 and the statement showing the name of the employees drawing remuneration in excess of the limits set out in Section 197(12) of the Companies Act, 2013 read with Rule 5(2) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 is annexed as Annexure-C.
Members and other entitled persons who have not registered their email address with the Company may access the full version of the Annual Report of the Company or by physically inspecting the full version of the Annual Report at the Registered office and at the Corporate office of the Company on all working days of the Company between 10.00 a.m. to 1.00 p.m. or by requesting a physical copy by writing to the Company Secretary.
STATUTORY AUDITORS
M/s Lodha & Co., Chartered Accountants (ICAI Firm Registration No. 301051E), New Delhi, were appointed as the Statutory Auditors at previous Annual General Meeting (AGM) for a period of 5 years from the conclusion of 37th Annual General Meeting till 42nd Annual General Meeting of the Company, subject to ratification at each Annual General Meeting by the shareholders of the Company.
In terms of the first proviso to Section 139 of the Companies Act, 2013, appointment of M/s Lodha & Co., Chartered Accountants, as the Statutory Auditors of the Company, is recommended for ratification at the ensuing AGM.
Explanations on qualification, reservation or adverse remark by Statutory Auditors
A) During the financial year 2014-15, the Hon'' ble Supreme Court vide its judgment dated August 25, 2014 read with its order dated September 24, 2014 had cancelled the allocation of certain Coal Blocks, which were allotted from year 1993 onwards through Screening Committee. The Supreme Court also directed the Coal block allottees to pay an additional levy of Rs, 295 per MT on the coal extracted from the operational mines. The review petition filed by the Company and its subsidiary company JPL before the Hon''ble Supreme Court of India against the order challenging cancellation of coal blocks and imposing additional levy of Rs, 295 per MT on coal extracted with retrospective effect, is still pending.
I n the meanwhile, the Company has paid Rs, 3,267.43 crore (including Rs, 1,185.20 crore paid by its subsidiary company JPL) under protest on the Run of Mine coal extracted from the operational mines from the commencement of coal mining in the year 1993 to September 30, 2014. Out of the said amount, on the basis of the legal advice obtained by the Company that additional levy of Rs, 295 per MT is payable only on coal extracted and is not payable on shale, rejects and ungraded middlings, an amount of Rs, 1,911.64 crore (including Rs, 1,103.87 crore related to its subsidiary company JPL) computed on coal extracted excluding shale, rejects and ungraded middling has been shown as an exceptional item in the Statement of Profit and Loss. The balance amount of Rs, 1,355.79 crore (including Rs, 81.33 crore related to its subsidiary company JPL) being additional levy of Rs, 295 per MT on shale, rejects and ungraded middlings has, accordingly, been shown as recoverable. On the same principle, the Company has accrued additional levy of Rs, 178.18 crore (including Rs, 85.78 crore payable by its subsidiary company JPL) based on coal extracted excluding shale, rejects and ungraded middling from October 1, 2014 to June 30, 2015.
The Board of the Company, based on the legal advice, is sanguine of obtaining appropriate relief in respect of the same.
B) The Board is of the view that as of now there is no requirement for adjustment to the carrying value of investment made in mining assets by the company and difference, if any shall be accounted for when the matter is finally settled.
SECRETARIAL AUDITORS
M/s RSMV & Co., Company Secretaries, New Delhi (CP No. 11571) were appointed to conduct the Secretarial Audit of the Company as required under Section 204 of the Companies Act, 2013 and Rules there under. The Secretarial Audit Report i.e. MR-3 forms part of the Annual Report as Annexure-D to the Board''s Report.
Observation of Secretarial Auditors on composition of Board is explained elsewhere in the report.
COST AUDITORS
M/s Ramanath Iyer & Co., (FRN 00019), Cost Accountants, were appointed as Cost Auditors of the Company for auditing the cost records of the Company for the Financial Year 2017-18.
The Cost Audit Report for the Financial Year ended March 31, 2016 of the Company was filed on September 7, 2016.
In terms of Section 148 of the Companies Act, 2013 read with the Companies (Audit and Auditors) Rules, 2014, appropriate resolution seeking ratification of the remuneration of M/s Ramanath Iyer & Co., (FRN 00019), Cost Accountants, approved by the Board, is included in the Notice convening the 38th AGM of the Company.
RISK MANAGEMENT
The Company has in place a robust risk management framework which identifies and evaluates business risks and opportunities. The Company recognizes that these risks need to be managed and mitigated to protect the interest of the shareholders and stakeholders, to achieve business objectives and enable sustainable growth. The risk management framework is aimed at effectively mitigating the Company''s various business and operational risks, through strategic actions. Risk management is embedded in our critical business activities, functions and processes. The risks are reviewed for the change in the nature and extent of the major risks identified since the last assessment. It also provides control measures for risk and future action plans.
The Company has a Risk Management Committee of the Board, which looks after the identification of risks and their mitigation planning. More details about this Committee and its role and responsibilities are given in the Corporate Governance Report.
INTERNAL FINANCIAL CONTROLS
The Company has in place adequate Internal Financial Controls with reference to financial statements and such internal financial controls are operating effectively. Your Company has adopted policies and procedures for ensuring the orderly and efficient conduct of its business, including adherence to the Company''s policies, the safeguarding of its assets, prevention and detection of frauds and errors, accuracy and completeness of the accounting records, and timely preparation of reliable financial disclosures.
CORPORATE SOCIAL RESPONSIBILITY (CSR)
As per the provisions of Section 135 of the Act, the Company has constituted a committee to formulate, implement and monitor the CSR Policy of the Company.
The Annual Report on the Corporate Social Responsibility (CSR) activities for the Financial Year 2016-17 as required under Section 134 and 135 of the Companies Act, 2013 read with Rule 8 of the Companies (Corporate Social Responsibility Policy) Rules, 2014 and Rule 9 of the Companies (Accounts) Rules, 2014 is attached to this Report as Annexure-E.
SIGNIFICANT AND MATERIAL ORDERS PASSED BY THE REGULATORS OR COURTS
There are no significant material orders passed by the Regulators/ Courts which would impact the going concern status of the Company and its future operation during the year under review except the following:
De-Allocation of Coal Blocks:
Following the petition in M L Sharma vs The Principal Secretary & Ors and subsequent other Writs, the Hon''ble Supreme Court vide its judgment dated August 25, 2014 read with its order dated September 24, 2014 had cancelled the allocation of Coal Blocks allotted from 1993 onwards through Screening Committee Route.
Subsequently, the Company''s subsidiary, Jindal Power Limited (JPL), despite having made winning bids during the auction of Gare Palma IV/2 and IV/3 Coal Mine in February, 2015, was not declared a successful bidder by the office of Nominated Authority. This was challenged by JPL before Hon''ble Delhi High Court, which decided the matter on March 9, 2017 and the proceedings arising from the same are presently sub-judice before the Hon''ble Supreme Court.
However, since de-allocation of Coal Blocks, the Company is fully geared and catering to its coal requirements through coal linkage, e-auctions etc. Further, the Company also intends to participate in future Coal Block Auctions.
DIRECTORS'' RESPONSIBILITY STATEMENT
Pursuant to Section 134(3) (c) of the Companies Act, 2013, the Directors state:
(a) that in the preparation of the annual accounts for the year ended March 31, 2017, the applicable accounting standards and Schedule III to the Companies Act, 2013, have been followed and there are no material departures from the same;
(b) that the Directors have selected such accounting policies and applied them consistently and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of your Company as at March 31,
2017 and of the loss of the Company for the year ended on that date;
(c) that proper and sufficient care has been taken for the maintenance of adequate accounting records in accordance with the provisions of Companies Act, 2013 for safeguarding the assets of your Company and for preventing and detecting fraud and other irregularities;
(d) that the annual accounts have been prepared on a going concern basis;
(e) that proper internal financial controls laid down by the Directors were followed by the Company and that such internal financial controls are adequate and were operating effectively; and
(f) that proper systems to ensure compliance with the provisions of all applicable laws were in place and that such systems were adequate and operating effectively.
OTHER INFORMATION
Business Responsibility Report
As stipulated under the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Business Responsibility Report describing the initiatives taken by the Company from environmental, social and governance perspective is attached as part of the Annual Report.
Management Discussion and Analysis Report
Management Discussion and Analysis Report for the year under review, as stipulated under SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, is annexed herewith as Annexure - F to this Report.
Conservation of Energy, Technology Absorption and Foreign Exchange Earnings and Outgo
The information on conservation of energy, technology absorption and foreign exchange earnings and outgo as stipulated under Section 134(3) (m) read with Rule 8 of the Companies (Accounts) Rules, 2014 is annexed herewith as Annexure - G to this Report.
Certificate on Corporate Governance
The Company is committed to maintain the highest standards of Corporate Governance and adhere to the Corporate Governance requirements set out by Securities and Exchange Board of India. The Company has also implemented several best corporate governance practices as prevalent globally. The report on Corporate Governance as stipulated under the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 forms an integral part of this Report. The requisite certificate issued by M/s RSMV & Co., Company Secretaries in Practice confirming compliance with the conditions of Corporate Governance (Annexure - I) is annexed with Corporate Governance Report.
Whistle Blower and Vigil Mechanism
Your Company has formulated a vigil mechanism to deal with instances of unethical behavior, actual or suspected, fraud or violation of Company''s code of conduct or ethics policy. The details of policy is explained in Corporate Governance Report and also uploaded on Company''s website at the following link: http://www.jindalsteelpower.com/img/admin/report/pdf/whistle.pdf
Prevention of Sexual Harassment at Workplace
As per the requirement of the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 and the Rules made there under, your Company has constituted Internal Complaints Committee having designated independent member(s) to redress complaints regarding sexual harassment. During the year, no complaint regarding Sexual Harassment has been reported.
Extract of the Annual Return
The details forming part of the extract of the Annual Return in Form No. MGT - 9 in accordance with the provisions of Section 92 of the Companies Act, 2013 read with the Companies (Management and Administration) Rules, 2014, are set out herewith as Annexure-H to this Report.
Cautionary Statement
Statements in the Board''s Report and the Management Discussion & Analysis describing the Company''s objectives, expectations or forecasts may be forward looking within the meaning of applicable Securities Laws and Regulations. Actual results may differ materially from those expressed in the statement. Important factors that could influence the Company''s operations include global and domestic demand and supply conditions affecting selling prices of finished goods, input availability and prices, changes in Government Regulations, Tax Laws, Economic Developments within the country and other factors such as litigation and industrial relations.
Acknowledgements
The Directors wish to place on record their appreciation for the sincere services rendered by employees of the Company at all levels. Your Directors also wish to place on record their appreciation for the valuable co-operation and support received from the Government of India, various State Governments, the Banks/ Financial Institutions and other stakeholders such as, shareholders, customers and suppliers, among others. The Directors also commend the continuing commitment and dedication of the employees at all levels, which has been critical for the Company''s success. The Directors look forward to their continued support in future.
For and on behalf of the Board of Directors
Naveen Jindal
Place: New Delhi Chairman
Dated: August 8, 2017 DIN: 00001523
Mar 31, 2016
Dear Members,
The Directors have pleasure in presenting the 37th Annual Report on the
business and operations of your Company along with the Audited
Financial Statements for the Financial Year ended March 31, 2016.
FINANCIAL RESULTS
The financial performance of your Company for the Financial Year ended
March 31, 2016 is summarised below:
(Rs.in crore)
Particulars Standalone Consolidated
Financial Financial Financial Financial
Year ended Year ended Year ended Year ended
31.03.2016 31.03.2015 31.03.2016 31.03.2015
Sales & other income 12,852.46 13,686.79 18,632.26 19,626.27
Profit before finance
cost and depreciation 2,481.31 4,018.63 3,633.03 5,707.52
Profit/(Loss) before
tax (1,659.72) (639.41) (2,674.93) (1,542.75)
Less: Provision of Tax 640.84 (328.73) (676.30) (88.16)
Profit/(Loss) after tax (1,018.88) (310.68) (1,998.63) (1,454.59)
Balance brought
forward from previous
year 9,755.39 10,385.18 16,718.39 18,501.07
Profit available for
Appropriations 8,736.51 10,074.50 14,816.38 17,222.95
Appropriations:
Debenture Redemption
Reserve 237.54 212.54 237.54 337.54
General Reserve - - 0.70 32.68
Other Reserves - 106.57 590.54 134.34
Surplus carried to
Balance Sheet 8,498.97 9,755.39 13,987.60 16,718.39
MATERIAL CHANGES AFFECTING FINANCIAL POSITION
Your Board of Directors in its meeting held on May 03, 2016, subject to
customary regulatory approval and other condition precedents had
approved the Divestment of 1000MW power unit of the Subsidiary Company
i.e. Jindal Power Limited located in Chhattisgarh to a related party
i.e. JSW Energy Limited through a process of scheme or other mechanisms
including transfer through special purpose vehicle ("SPV") and
thereafter sale of entire share capital and other securities of the
said SPV in terms of Share Purchase Agreement for an enterprise value
of Rs.6,500 crore plus value of Net Current Assets as on the closing
date. The valuation may vary based upon the achievement of Power
Purchase Agreement(s), Fuel sourcing tie-ups as prescribed in the
Agreement subject to the minimum of Rs.4,000 crore plus value of Net
Current Assets as on the closing date.
FINANCIAL HIGHLIGHTS
On standalone basis the total revenue (net of excise) was Rs.12,852.46
crore as against Rs.13,686.79 crore in the previous year showing a
decline of 6.1%.
Sale of Steel products in the domestic market was 27.36 Lakh MT as
compared to 22.74 Lakh MT in the previous year showing an increase of
20.3% and total export was 2.41 Lakh MT as compared to 4.50 Lakh MT in
the previous year showing a decrease of 46.4%.
Profit before tax (PBT) was Rs.(-) 1,659.72 crore as against Rs.(-)
639.41 crore in the previous year and profit after tax (PAT) stood at
Rs. (-) 1,018.88 crore against Rs.(-) 310.68 crore in the previous
year.
OPERATIONAL HIGHLIGHTS
Steel: Production of Finished Steel products during the year under
review was 25.10 Lakh MT as against 23.19 Lakh MT in the previous year
whereas production of semi steel products was 34.82 Lakh MT as against
30.82 Lakh MT in the previous year.
Power: During the year under review, 6,870 million Kwh of power was
generated as against 7,340 million Kwh of power in the previous year.
Sponge Iron: Production of Sponge Iron during the year under review was
19.94 Lakh MT as against previous year production of 16.61 Lakh MT.
Pellet: 45.89 Lakh MT of pellets were produced during the year under
review as against 32.19 Lakh MT in the previous year.
Machinery: Machinery division in Raipur unit produced 1,931 MT of
castings and has done machining of 14,088 MT, as against 1,832 MT and
10,592 MT respectively in the previous year.
Mining: The mining of calibrated iron ore at captive mine at Tensa in
Odisha was 6.22 Lakh MT as against previous year''s mining of 4.90 Lakh
MT.
The detailed discussions on the operations have been given elsewhere in
the report.
PROJECTS COMPLETED
Steel Plant at Angul, Odisha
Your Company has completed following operational facilities under Phase
- I of 6 MTPA integrated Steel Plant at Angul in the State of Odisha:
a) Steel Melting Shop: Your Company has implemented 250 T Electric Arc
Furnace which is one of the largest in India. This has doubled the
Steel production in this Financial Year in comparison to the previous
year.
b) Direct Reduced Iron Plant: 1.8 MTPA DRI Plant is a unique plant in
the world which utilizes syngas (Produced from Coal) and improved its
operational efficiency through various drives and hence doubled the
production.
c) Plate Mill: Your Company has one of the widest plate mill (5mtrs.
wide) plant with 1.2 MTPA capacity and is producing different types of
value added plates for sectors such as Defence, Hydel Projects, Oil
Exploration etc.
These plants are supported by 810 MW Captive Power Plant (6x135 MW),
Air Separation Unit (2x1200 TPD), Lime Dolomite Plant (2x500 TPD), Coal
Washery (6 MTPA) and Process Boilers (3x1800 TPH).
Steel Plant at Raigarh, Chhattisgarh
To enhance the plant''s productivity and output, your Company has
completed the following new projects in Raigarh during the Financial
Year under review:
1. Modification of EAF#01 of SMS-2 to NEOF which uses 85% HM and 15%
DRI thus resulting in improved yield % and reduced conversion cost. The
technology has been supplied by Tenova SPA, Italy.
2. Long Rail Welding facility at RUBM which is now welding 3 nos. of
87 Mtr Rails into 260 Mtr panels. The Company has now started dispatch
of 260 Mtr long rails to DFCC.
3. Upgradation of Plate Mill for improvement in productivity and
quality of plates and coils.
Pellet Plant at Barbil, Odisha
Your Company has completed Rapid Loading System and Fines Conveying
System from wagon tippler to stock yard.
Machinery Division at Raipur, Chhattisgarh
Your Company has implemented following facilities during the Financial
Year under review:
1. Installed CNC Oxyfuel Plate Cutting Machine in Fabrication shop to
enhance fabrication capability.
2. Automated Annealing furnace through new Proportional Integral
Derivate (PID) Controller to increase the efficiency of the furnace.
3. Enhanced capacity of Quality Lab by procuring equipment such as
Extensometer for Universal Testing Machine, Brinell Hardness Tester,
Notch Broching Machine and Profile Projector to meet NABL requirements.
Shadeed Iron & Steel, Oman
Shadeed Iron & Steel LLC, Oman, a Subsidiary Company has commissioned
the world''s largest and most modern state-of-the-art 1.4 MTPA Rebar
Mill on January 17, 2016 to supply finished steels, the first time in
its five-year-history with the imminent production of Rebar''s for the
construction industry to cater mainly to domestic and Middle East
countries. The Steel-making and Rolling Complex was dedicated to the
nation on March 20, 2016.
PROJECTS UNDER IMPLEMENTATION
Steel Plant at Raigarh, Chhattisgarh
Your Company has the following projects under implementation with a
view to increase the efficiency of steel plants at Raigarh:
1. Head hardened rails for high speed applications and Metro rails and
exports.
2. Installation of new reheating furnace in Rail and Universal Beam
Mill to increase throughput.
3. Upgradation of Rail Finishing Facility at RUBM for Capacity and
Dispatch Enhancement.
Steel Plant (Phase 1B) at Angul in the state of Odisha
Your Company is expanding the steel plant (Phase 1B) at Angul at brisk
pace from the present 1.5 MTPA to 5 MTPA through the conventional
integrated steel plant route i.e Coke Oven and By- Product Plant,
Sinter Plant, Blast Furnace, Steel Melting Shop- II, Bar Mill and other
allied units.
In Phase 1B units viz. Blast Furnace, Coke Oven and By-Product Plant,
Sinter Plant, Steel Melting Shop - II; majority of civil work (~ 80%)
has been completed. Structural Fabrication and Erection work is in
progress and over 60% Fabrication and 50% Erection has been completed.
Equipment erection has also commenced. Your Company is expecting to
commission India''s biggest Blast Furnace (4554 cu.m) in the third
quarter of Financial Year 2016-17.
The Bar Mill situated at Angul, Odisha has been commissioned in first
quarter of the Financial Year 2016-17.
Machinery Division at Raipur, Chhattisgarh
In order to enhance the capacity and productivity of the division, your
Company has planned the following additional equipment facilities:
1. Plate Bending Machine for higher thickness bending of Plates upto
120 mm (Thk) and 4000 mm (Wid).
2. Plate shearing machine for cutting of CS plates upto 12 mm and SS
Plates upto 6mm.
3. Upgradation of EOT Crane 25/08 MT in Machine shop (bay no 3).
4. Equipment for Machine shop and assembly shop like Milling Head for
CNC floor type Boring Machine (PAMA), In-situ Machine, Induction heater
for shrink fitting.
5. New Pit Furnace for Hardening facility.
DIVIDEND
In view of the losses incurred during the FY 2015-16, your Board of
Directors has not recommended any Dividend.
During the year, the unclaimed dividend of Rs.25,84,017/- (Rupees
Twenty Five Lakh Eighty Four Thousand and Seventeen Only) pertaining to
interim dividend of Financial Year 2007-08 and Rs.42,65,953/- (Rupees
Forty Two Lakh Sixty Five Thousand Nine Hundred and Fifty Three Only)
pertaining to final dividend of the Financial Year 2007-08, have been
transferred to the Investor Education and Protection Fund, (IEPF),
Government of India. The details including last date of claiming of
unclaimed / unpaid dividend amount are given at the end of the Notice
of the Annual General Meeting.
CREDIT RATING
Your Company''s domestic credit rating is "D" (single D) for the
long-term debt/facilities/NCDs rated by Credit Analysis & Research Ltd.
(CARE), CRISIL and ICRA Limited. CARE, CRISIL Ratings as well as ICRA
Limited rated the Company''s short term debt/facilities at the level of
"D".
CONSOLIDATED FINANCIAL STATEMENTS
The Consolidated Financial Statements of your Company for the Financial
Year 2015-16, is prepared in compliance with the applicable provisions
of the Companies Act, 2013, Accounting Standards and the Securities and
Exchange Board of India (Listing Obligations and Disclosure
Requirements) Regulations, 2015.
SHARE CAPITAL
The Authorised Share Capital of the Company is Rs.2,00,00,00,000/-
(Rupees Two Hundred crore only) divided into 2,00,00,00,000 (Two
Hundred crore) equity shares of Rs.1/- (Rupee One) each. The paid up
equity share capital as on March 31, 2016 was Rs.91,49,03,800/- (Rupees
Ninety One crore Forty Nine Lakh Three Thousand and Eight Hundred only)
comprising 91,49,03,800 (Ninety One crore Forty Nine Lakh Three
Thousand and Eight Hundred) equity shares of Rs.1/- (Rupee One) each.
Your Company has an Employee Share Purchase Scheme namely JSPL ESPS
2013. Relevant Disclosure pursuant to Securities and Exchange Board of
India (Share Based Employee Benefits) Regulation, 2014 are given as
Annexure - E to this report.
NON-CONVERTIBLE DEBENTURES
The aggregate outstanding amount of Non-Convertible Debentures (NCDs)
of the Company as on March 31, 2016 was Rs.3,912 crore. Out of
Rs.3,912 crore, the NCDs amounting to Rs.300 crore were redeemed on
April 4, 2016.
DEPOSITS
The Company has not accepted/received any deposits during the year
under report falling within the ambit of Section 73 of the Companies
Act, 2013 and the Companies (Acceptance of Deposits) Rules, 2014.
RELATED PARTY TRANSACTIONS
Particulars of contracts or arrangements entered into by the Company
with the related parties referred to in Section 188(1) of the Companies
Act, 2013, in prescribed Form AOC-2, is attached herewith as Annexure -
A to this Report.
All the related party transactions that were entered and executed
during the year under review were in the ordinary course of business
and at arm''s length basis. As per the provisions of Section 188 of the
Companies Act, 2013 and Rules made thereunder read with Regulation 23
of Securities and Exchange Board of India (Listing Obligations and
Disclosure Requirements) Regulations, 2015, your Company had obtained
the prior approval of the Audit Committee under omnibus approval route
before entering into such transactions.
Moreover, on the recommendations of the Audit Committee, your Board had
revised the Policy on Related Party Transactions in accordance with
Securities and Exchange Board of India (Listing Obligations and
Disclosure Requirements) Regulations, 2015 and as per the amended
provisions of the Companies Act, 2013.
The policy is uploaded at the below web link:
http://www.jindalsteelpower.com/img/admin/report/pdf/RPT_ Policy.pdf
PARTICULARS OF LOANS, GUARANTEES OR INVESTMENTS
Details of Loans, Guarantees, Securities and Investments covered under
the provisions of Section 186 of the Companies Act, 2013 are given in
the Notes to Financial Statements.
SUBSIDIARIES, ASSOCIATES AND JOINT VENTURES
Your Company follows its global ambition to build a premium brand name
for its quality steel solutions, expertise and with a view of expansion
and diversification, it has created multiple subsidiaries, domestic and
abroad, associates and joint ventures for facilitating these operations
in various countries. A separate statement containing salient features
of Financial Statements of Subsidiaries, Associates and Joint Ventures
of your Company forms part of Consolidated Financial Statements in
terms of Section 129 of the Companies Act, 2013.
The names of companies which have become or ceased to be its
Subsidiaries, Associate Companies or Joint Ventures are also disclosed
in that statement.
The Financial Statements of Subsidiary Companies are kept open for
inspection by the shareholders at the Registered Office of your Company
during business hours on all days except Saturdays, Sundays and public
holidays upto the date of the Annual General Meeting (AGM) as required
under Section 136 of the Companies Act, 2013. Any member desirous of
obtaining a copy of the said Financial Statements may write to the
Company at its Registered Office or Corporate Office. The Financial
Statements including the Consolidated Financial Statements and all
other documents required be attached to this Report have been uploaded
on the website of your Company viz. www.jindalsteelpower.com
Your Company has framed a policy for determining "Material Subsidiary",
in terms of Regulation 16(c) of Securities and Exchange Board of India
(Listing Obligations and Disclosure Requirements) Regulation, 2015.
Jindal Power Limited is a material subsidiary of the Company in terms
of the said policy. The Policy on Material Subsidiary has been uploaded
on the Company''s website at the following link:
http://www.jindalsteelpower.com/img/admin/
report/pdf/Policy_on_determining_material_subsidiary.pdf
The details of business operations/performance of major subsidiaries
are as below:
JINDAL POWER LIMITED
Jindal Power Limited, a subsidiary company (JPL) is operating 2,800 MW
power plant at Tamnar, Chhattisgarh.
During the year under review, 1,000 MW (4x250 MW) power plant generated
5,169 million units of power representing 58.85% Plant Load Factor
(PLF) as against 8,113 million units of power representing 92.61% PLF
in the previous year.
Commercial operation of first and second unit of 600 MW each of the
2,400 MW (4x600 MW) thermal power project being set up in Tamnar,
Raigarh, Chhattisgarh was declared in March 2014.
Commercial operation of third unit of 600 MW of the 2,400 MW (4x600 MW)
thermal power project was declared on January 15, 2015. With this, the
installed power generation capacity of JPL has increased to 2,800 MW.
During Financial Year 2015-16, these units generated 4,372 million
units of power.
Jindal Power Limited (JPL) 258 km, 400 kV double-circuit transmission
line is being used as an interstate transmission line belonging to the
Western Region Interstate Transmission System. The Central Electricity
Regulatory Commission (CERC) has granted a transmission license to the
Company for carrying on business activity and has fixed provisional
tariff for its use. During the year under review, JPL has earned
transmission income of Rs.45.44 crore from this line.
During the year under review, JPL has recorded total revenue of
Rs.3,513.19 crore and the loss after tax was Rs.102.49 crore.
SHADEED IRON & STEEL LLC, OMAN
Shadeed Iron & Steel LLC, Oman, a subsidiary of Jindal Steel & Power
Ltd., is operating 1.5 MTPA or Brigutted Iron plant and Steel melt
shop. It has recorded sales of Rs.2,815.77 crore, in the Financial Year
2015-16 and earned a profit after tax of Rs.6.18 crore.
JINDAL MINING SA (PTY) LIMITED, SOUTH AFRICA
The operating coal mine, recorded sales of Rs.110.69 crore in Financial
Year 2015-16 and incurred a loss of Rs.39.64 crore.
JSPL MOZAMBIQUE MINERALS LDA, MOZAMBIQUE
The operating coal mine, recorded sales of Rs.10.60 crore in Financial
Year 2015-16 and incurred a loss of Rs.267.07 crore.
WOLLONGONG COAL LIMITED (FORMERLY GUJARAT NRE COKING COAL AUSTRALIA
LIMITED)
The operating coal mine recorded sales of Rs.37.02 crore in Financial
Year 2015-16 and incurred a loss of Rs.420.50 crore.
With a view to ensure availability of coal and other raw materials, the
Company has, through its other subsidiaries, acquired exploration/
mining interests in Botswana, Indonesia, Madagascar, Namibia, Liberia,
Mauritania, Zambia and Tanzania.
DIRECTORS AND KEY MANAGERIAL PERSONNEL
Appointment
During the period under review, Mr. Rajeev Rupendra Bhadauria was
appointed as an Additional Director and Whole-time Director by the
Board of Directors in its meeting held on May 27, 2015. Subsequently,
the Shareholders of the Company in the Annual General Meeting held on
September 18, 2015 approved the appointment of Mr. Rajeev Rupendra
Bhadauria as Director and Whole-time Director of the Company.
Key Managerial Personnel
Mr. Naveen Jindal, Chairman, Mr. Ravi Kant Uppal, Managing Director &
Group CEO, Mr. Rajeev Rupendra Bhadauria, Whole- time Director, Mr.
Dinesh Kumar Saraogi, Whole-time Director, Mr. Kannabiran Rajagopal,
Group Chief Financial Officer and Mr. Jagdish Patra, Vice President &
Group Company Secretary are the Key Managerial Personnel of your
Company in accordance with the provisions of Sections 2(51) and 203 of
the Companies Act, 2013 read with Companies (Appointment and
Remuneration of Managerial Personnel) Rules, 2014.
During the year under review, Mr. Harish Dua was appointed as the
Acting Chief Financial Officer of the Company from April 01, 2015 till
November 30, 2015. Mr. Kannabiran Rajagopal has been appointed as Group
Chief Financial Officer of the Company w.e.f. February 13, 2016.
Resignation
Mr. Harish Dua resigned from the position of Acting Chief Financial
Officer w.e.f. November 30, 2015, Mr. Ratan Jindal resigned from the
position of Non-Executive Director of the Company w.e.f. March 30, 2016
and Mr. Chandan Roy has resigned from the position of Independent
Director of the Company w.e.f. June 07, 2016.
Your Directors would like to record their deep sense of appreciation
for the enormous contributions made by them during their respective
tenures.
Retirement by Rotation
In accordance with the provisions of Section 152 of the Companies Act,
2013 and in terms of the Articles of Association of the Company, Ms.
Shallu Jindal, Non-Executive Director and Mr. Dinesh Kumar Saraogi,
Whole-time Director are liable to retire by rotation at the ensuing
Annual General Meeting and being eligible, seek re-appointment. Your
Board of Directors recommends their re- appointment.
BOARD EVALUATION
The Companies Act, 2013 mandates formal annual evaluation by the Board
of its own performance and that of its committees and Individual
Directors. Schedule IV to the Companies Act, 2013 provides that the
performance evaluation of Independent Directors shall be done by the
entire Board of Directors, excluding the Directors being evaluated.
Pursuant to the provisions of the Companies Act, 2013 and Securities
and Exchange Board of India (Listing Obligations and Disclosure
Requirements) Regulations, 2015, the Board has carried out annual
evaluation of performance of Directors individually, Board as a whole
and following Committees of the Board of Directors.
i) Audit Committee
ii) Nomination and Remuneration Committee
iii) Health, Safety, CSR and Environment Committee
iv) Stakeholders'' Relationship Committee
v) Risk Management Committee and
vi) Investment Committee
The manner in which the evaluation has been carried out is explained in
the Corporate Governance Report. The Board approved the evaluation made
by the Nomination and Remuneration Committee.
SEPARATE MEETING OF INDEPENDENT DIRECTORS
In term of requirements of Schedule IV of the Companies Act, 2013 and
Regulation 25 of Securities and Exchange Board of India (Listing
Obligations and Disclosure Requirements) Regulations, 2015, a separate
meeting of the Independent Directors was held on March 25, 2016 for the
Financial Year 2015-16.
The Independent Directors at the meeting reviewed the following:
a. Performance of Non-Independent Directors and the Board as a whole;
b. Performance of the Chairman of the Company, taking into account the
views of Executive Directors and Non-Executive Directors; and
c. Assess the quality, quantity and timeliness of flow of information
between the Company Management and the Board that is necessary for the
Board to effectively and reasonably perform their duties.
MEETINGS OF THE BOARD AND COMMITTEES
The details of the number of meetings of the Board and various
Committees of your Company are set out in the Corporate Governance
Report which forms part of this Report. The intervening gap between the
meetings was within the period prescribed under the Companies Act, 2013
and Securities and Exchange Board of India (Listing Obligations and
Disclosure Requirements) Regulations, 2015.
DECLARATION BY INDEPENDENT DIRECTORS
Your Company has received necessary declarations from each Independent
Director that he/she meets the criteria of independence as laid down
under the Companies Act, 2013 read with Schedule IV and Rules made
thereunder, as well as Securities and Exchange Board of India (Listing
Obligations and Disclosure Requirements) Regulations, 2015. The Board
considered the independence of each of the Independent Directors in
terms of the above provisions and is of the view that they fulfil/meet
the criteria of independence.
REMUNERATION POLICY
In accordance with the provisions of Section 178 of the Companies Act,
2013 read with Rules made thereunder and Securities and Exchange Board
of India (Listing Obligations and Disclosure Requirements) Regulations,
2015, the Company''s policy on Nomination and Remuneration of Directors,
KMPs and Senior Management of your Company is uploaded on website of
the Company: http://www.jindalsteelpower.com/img/admin/report/
pdf/Remuneration_Policy.pdf.
Remuneration of Directors, Key Managerial Personnel and Particulars of
Employees
The information required to be disclosed in the Board''s Report pursuant
to Section 197 of the Companies Act, 2013 read with Rule 5 of the
Companies (Appointment and Remuneration of Managerial Personnel) Rules,
2014, is being sent to the members and others entitled thereto both
electronically, who have registered their email address with the
Company and physically to those, who have not registered their email
address with the Company.
Members and other entitled persons who have not registered their e-mail
address with the Company may access the full version of the Annual
Report on the website of the Company or by physically inspecting the
full version of the Annual Report at the Registered office or Corporate
office of the Company on all working days of the Company, between 10.00
am and 1.00 pm or by requesting a physical copy by writing to the
Company Secretary. The aforesaid disclosure is also set out in
Annexure-B to this report.
STATUTORY AUDITORS
M/S S.R.Batliboi & Co. LLP, Chartered Accountants (Firm Regn. No.
301003E), Statutory Auditors of the Company, have shown their inability
for their re-appointment as the Auditors of the Company and therefore
resigned upon the conclusion of the ensuing Annual General Meeting.
The Company has received a Special Notice under Section 140 (4) read
with Section 115 of the Companies Act, 2013 from M/s Opelina Finance
and Investment Limited in the capacity of a member of the Company
proposing a resolution at the ensuing Annual General Meeting for
appointment of M/s Lodha & Co., Chartered Accountants (ICAI Firm
Registration No. 301051E) as Statutory Auditors in place of M/s S. R.
Batliboi & Co. LLP, Chartered Accountants. M/s Lodha & Co., Chartered
Accountants, have agreed to and given their consent for their
appointment as the Statutory Auditors of the Company. M/s S. R.
Batliboi & Co. LLP, Chartered Accountants have maintained the highest
level of governance and substantially contributed in to the efforts of
the Company towards strengthening the internal controls, processes and
procedures in line with expanding size of operations. The Board places
on record its deep sense of appreciation for the services rendered and
guidance given by them as the Statutory Auditors of the Company. In
terms of Section 139(2) of the Companies Act, 2013, the Board has
recommended the appointment of M/s Lodha & Co., Chartered Accountants
as the Statutory Auditors of the Company for a period of five
consecutive years from the conclusion of the Thirty Seventh Annual
General Meeting up to the conclusion of the Forty Second Annual General
Meeting, subject to ratification at each Annual General Meeting, at a
remuneration that may be decided by the shareholders.
Comments/Qualifications of the Auditors in their report and the notes
forming part of the Accounts are self-explanatory. Management
representations to these qualifications/comments are as follows:
A. During the previous year, the Hon''ble Supreme Court vide its
judgement dated August 25, 2014 read with its order dated September 24,
2014 had cancelled the allocation of certain Coal Blocks, which were
allotted from year 1993 onwards through Screening Committee. The
Supreme Court also directed the Coal block allottees to pay an
additional levy of Rs.295 per MT on the coal extracted from the
operational mines. The review petition filed by the Company and its
subsidiary company JPL before the Hon''ble Supreme Court of India
against the order challenging cancellation of coal blocks and imposing
additional levy of Rs.295 per MT on coal extracted with retrospective
effect, is still pending.
In the meanwhile, the Company has paid Rs.3,267.43 crore (including
Rs.1,185.20 crore paid by its subsidiary company JPL) under protest on
the Run of Mine coal extracted from the operational mines from the
commencement of coal mining in the year 1993 to September 30, 2014. Out
of the said amount, on the basis of the legal advice obtained by the
Company that additional levy of Rs.295 per MT is payable only on coal
extracted and is not payable on shale, rejects and ungraded middlings,
an amount of Rs.1,911.64 crore (including Rs.1,103.87 crore related to
its subsidiary company JPL) computed on coal extracted excluding shale,
rejects and ungraded middling has been shown an exceptional item in the
Statement of Profit and Loss. The balance amount of Rs.1,355.79 crore
(including Rs.81.33 crore related to its subsidiary company JPL) being
additional levy of Rs.295 per MT on shale, rejects and ungraded
middlings has, accordingly, been shown as recoverable. On the same
principle, the Company has accrued additional levy of Rs.178.18 crore
(including Rs.85.78 crore payable by its subsidiary company JPL) based
on coal extracted excluding shale, rejects and ungraded middling from
October 1, 2014 to June 30, 2015.
The Board of the Company, based on the legal advice, is sanguine of
obtaining appropriate relief in respect of the same.
B. The Board is of the view that as of now there is no requirement for
adjustment to the carrying value of investment made in mining assets by
the Company and difference, if any shall be accounted for when the
matter is finally settled.
COST AUDITORS
Your Board, on the recommendation of the Audit Committee, has appointed
M/s Ramanath Iyer & Co., (FRN 00019), Cost Accountants, for auditing
the cost records of the Company for the Financial Year 2016-17.
In terms of Section 148 of the Companies Act, 2013 read with the
Companies (Audit and Auditors) Rules 2014, appropriate resolution
seeking your ratification of the remuneration of M/s Ramanath Iyer &
Co., (FRN 00019), Cost Accountants, is included in the Notice convening
the 37th AGM of the Company.
SECRETARIAL AUDITORS
Your Board, on the recommendation of the Audit Committee, has appointed
M/s MZ & Associates, Company Secretaries to conduct the Secretarial
Audit of your Company for the Financial Year 2015-16. The Secretarial
Audit Report is annexed herewith as Annexure- C to this Report. The
Secretarial Audit Report does not contain any qualification,
reservation or adverse remark. Your Board of Directors has appointed
M/s RSMV & Co. Company Secretaries for the Financial Year 2016-17 to
conduct the Secretarial Audit of the Company.
RISK MANAGEMENT
The Company has in place a robust risk management framework which
identifies and evaluates business risks and opportunities. The Company
recognises that these risks need to be managed and mitigated to protect
the interest of the shareholders and stakeholders, to achieve business
objectives and enable sustainable growth. The risk management framework
is aimed at effectively mitigating the Company''s various business and
operational risks, through strategic actions. Risk management is
embedded in our critical business activities, functions and processes.
The risks are reviewed for change in the nature and extent of the major
risks identified since the last assessment. It also provides control
measures for risk and future action plans.
Pursuant to the provisions of the Companies Act, 2013 and Securities
and Exchange Board of India (Listing Obligations and Disclosure
Requirements) Regulations, 2015, the Company has a Risk Management
Committee of the Board, which looks after the identification of risks
and their mitigation planning. More details about this Committee and
its role and responsibilities are given in the Corporate Governance
Report.
INTERNAL FINANCIAL CONTROLS
The Company has in place adequate Internal Financial Controls with
reference to financial statements. During the year, such controls were
tested and no reportable material weakness in the design or operations
were observed. The report on the Internal Financial Control issued by
M/s S. R. Batliboi & Co. LLP, Chartered Accountants, the Statutory
Auditors of the Company in view of the provisions under the Companies
Act, 2013 is given elsewhere in this report.
CORPORATE SOCIAL RESPONSIBILITY (CSR)
The Annual Report on the Corporate Social Responsibility (CSR)
activities for the Financial Year 2015-16 as required under Sections
134 and 135 of the Companies Act, 2013 read with Rule 8 of the
Companies (Corporate Social Responsibility Policy) Rules, 2014 and Rule
9 of the Companies (Accounts) Rules, 2014 is attached to this Report as
Annexure - D.
SIGNIFICANT AND MATERIAL ORDERS PASSED BY THE REGULATORS OR COURTS
There are no significant material orders passed by the Regulators/
Courts which would impact the going concern status of the Company and
its future operation during the year under review except the following
significant orders passed by the Regulators/courts in the previous
year.
De-Allocation of Coal Blocks
Following the petition by M L Sharma vs The Principal Secretary & Ors
and subsequent other Writs, the Hon''ble Supreme Court of India vide its
judgement dated August 25, 2014 read with its order dated September 24,
2014 had cancelled the allocation of Coal Blocks those were allotted
from 1993 onwards through Screening Committee. Following the order of
the Hon''ble Supreme Court, the Central Government had promulgated The
Coal Mines (Special Provisions) Ordinance, 2014 [now an Act],
conferring power upon the Government to auction the Coal Blocks falling
into Schedule-I consisting of 204 Coal Blocks as mentioned in the said
Act.
Subsequently, the Government proceeded with the auction of Coal Blocks
falling under Schedule II consisting of total 42 Coal Blocks and as
notified through circular of Ministry of Coal. The sale of tender
document took place from December 27, 2014 and Company and its
subsidiary Jindal Power Limited (JPL) participated in the said auction
process where the Electronic Bidding commenced from February 14, 2015
and ended on February 22, 2015 in which JPL won Gare Palma IV/2 & IV/3
Coal Block. Likewise after going through all procedural formalities as
mentioned in the Tender Document and as prescribed in The Coal Mines
(Special Provision) Ordinance, JPL made the winning bid for Tara Coal
Block and the result was declared via MSTC web-site (the Coal Block
Auction Platform).
Similarly the tender document sale of Schedule-III Coal Blocks,
consisting of total 59 Coal Blocks started on January 7, 2015 and the
Electronic Auction took place from March 4, 2015 to March 9, 2015
consisting of only 13 coal blocks in the 1st phase. The Company and JPL
participated in the said auction process.
However, on March 20, 2015, JPL received a letter via E-mail from the
office of Nominated Authority wherein it was conveyed that JPL was not
declared successful bidder for Gare IV/2 and IV/3 and Tara Coal Block
on the ground that the highest bidder does not reflect fair value,
which has been challenged in Hon''ble High Court of Delhi and the matter
is sub-judice.
Despite the aforesaid challenges faced by the Company during the
previous year, your Company is fully geared to cater to the coal
requirement of its entire planned generation through Coal Linkage and
e-auction etc. The Board of the Company is sanguine about winning more
Coal Blocks, which are planned to be auctioned in the subsequent
rounds.
DIRECTORS'' RESPONSIBILITY STATEMENT
Pursuant to Section 134(3) (c) of the Companies Act, 2013, the
Directors state:
(a) that in the preparation of the annual accounts for the year ended
March 31, 2016, the applicable accounting standards and Schedule III to
the Companies Act, 2013, have been followed and there are no material
departures from the same;
(b) that the Directors has selected such accounting policies and
applied them consistently and made judgements and estimates that are
reasonable and prudent so as to give a true and fair view of the state
of affairs of your Company as at March 31, 2016 and of the loss of the
Company for the year ended on that date;
(c) that proper and sufficient care has been taken for the maintenance
of adequate accounting records in accordance with the provisions of
Companies Act, 2013 for safeguarding the assets of your Company and for
preventing and detecting fraud and other irregularities;
(d) that the annual accounts have been prepared on a going concern
basis;
(e) that proper Internal Financial Controls laid down by the Directors
were followed by the Company and that such Internal Financial Controls
are adequate and were operating effectively; and
(f) that proper systems to ensure compliance with the provisions of all
applicable laws were in place and that such systems were adequate and
operating effectively.
OTHER INFORMATION
Business Responsibility Report
As stipulated under the Securities and Exchange Board of India (Listing
Obligations and Disclosure Requirements) Regulations, 2015, the
Business Responsibility Report describing the initiatives taken by the
Company from environmental, social and governance perspective is
attached as a part of the Annual Report.
Management Discussion and Analysis Report
Management Discussion and Analysis Report for the year under review, as
stipulated under Securities and Exchange Board of India (Listing
Obligations and Disclosure Requirements) Regulations, 2015, is annexed
herewith as Annexure-F to this Report.
Conservation of Energy, Technology Absorption and Foreign Exchange
Earnings and Outgo
The information on conservation of energy, technology absorption and
foreign exchange earnings and outgo as stipulated under Section
134(3)(m) read with Rule 8 of the Companies (Accounts) Rules, 2014 is
annexed herewith as Annexure - G to this Report.
Certificate on Corporate Governance
The Company is committed to maintain the highest standards of Corporate
Governance and adhere to the Corporate Governance requirements set out
by Securities and Exchange Board of India. The Company has also
implemented several best Corporate Governance practices as prevalent
globally. The report on Corporate Governance as stipulated under the
Securities and Exchange Board of India (Listing Obligations and
Disclosure Requirements) Regulations, 2015 forms an integral part of
this Report. The requisite certificate from M/s RSMV & Co., Company
Secretaries in practice confirming compliance with the conditions of
Corporate Governance is annexed herewith as Annexure-I to this Report.
Whistle Blower and Vigil Mechanism
Your Company has formulated a vigil mechanism in place namely, Group
Whistle Blower Policy (GWB) to deal with instances of unethical
behaviour, actual or suspected, fraud or violation of Company''s code of
conduct or ethics policy. The details of policy is explained in
Corporate Governance Report and also uploaded on Company''s website
under the web link: http://www.jindalsteelpower.com/img/
admin/report/pdf/whistle.pdf
Prevention of Sexual Harassment at Workplace
As per the requirement of the Sexual Harassment of Women at Workplace
(Prevention, Prohibition and Redressal) Act, 2013 and the Rules made
thereunder, your Company has constituted Internal Complaints Committee
having designated independent member(s) to redress complaints regarding
sexual harassments. During the year, no complaint regarding sexual
harassment has been reported.
Listing
The Securities and Exchange Board of India (SEBI), vide their
notification dated September 02, 2015 issued SEBI (Listing Obligations
and Disclosures Requirements) Regulations, 2015 with the aim to
consolidate and streamline the provisions of Listing Agreement for
different segments of Capital Markets to ensure better enforceability.
The said regulations were effective from December 01, 2015.
Accordingly, all listed entities were required to enter into the
Listing Agreement within six months from the effective date. The
Company entered into Listing Agreement with BSE Limited and National
Stock Exchange of India Limited in the month of January.
Both these Stock Exchanges have nationwide terminals and therefore,
shareholders/investors are not facing any difficulty in trading in the
shares of the Company from any part of the country. The Company has
paid annual listing fee for the Financial Year 2016-17 to the BSE Ltd.
and the National Stock Exchange of India Ltd.
Extract of the Annual Return
The details forming part of the extract of the Annual Return in Form
No. MGT - 9 in accordance with the provisions of Section 92 of the
Companies Act, 2013 read with the Companies (Management and
Administration) Rules, 2014, are set out herewith as Annexure - H to
this Report.
CAUTIONARY STATEMENT
Statements in the Board''s Report and the Management Discussion &
Analysis Report describing the Company''s objectives, expectations or
forecasts may be forward-looking within the meaning of applicable
Securities Laws and Regulations. Actual results may differ materially
from those expressed in the statement. Important factors that could
influence the Company''s operations include global and domestic demand
and supply conditions affecting selling prices of finished goods, input
availability and prices, changes in Government Regulations, tax laws,
economic developments within the country and other factors such as
litigation and industrial relations.
ACKNOWLEDGEMENTS
Your Company''s organisational culture upholds professionalism,
integrity and continuous improvement across all functions, as well as
efficient utilisation of the Company''s resources for sustainable and
profitable growth.
The Directors wish to place on record their appreciation for the
sincere services rendered by employees of the Company at all levels.
Your Directors also wish to place on record their appreciation for the
valuable co-operation and support received from the Government of
India, various State Governments, the Banks/Financial Institutions and
other stakeholders such as, shareholders, customers and suppliers,
among others. The Directors also commend the continuing commitment and
dedication of the employees at all levels, which has been critical for
the Company''s success. The Directors look forward to their continued
support in future.
For and on behalf of the Board of Directors
Naveen Jindal
Place: New Delhi Chairman
Dated : June 21, 2016 DIN : 00001523
Mar 31, 2015
Dear Members,
The Directors have pleasure in presenting the 36th Annual Report and
Audited Financial Statements for the Financial Year ended March 31,
2015.
FINANCIAL RESULTS
The financial performance of your Company for the Financial Year ended
March 31, 2015 is summarized below:
(Rs. in Crore)
Particulars Standalone
Financial Year Financial Year
ended ended
31.03.2015 31.03.2014
Sales & other income 13,686.79 14,001.79
Profit before finance cost and 4,002.12 3,905.71
depreciation
Profit/(Loss) before tax (639.41) 1,600.64
Less: Provision of Tax (328.73) 308.69
Profit/(Loss) after tax (310.68) 1,291.95
Balance brought forward from 10,385.18 9,884.71
previous year
Profit available for Appropriations 10,074.50 11,176.66
Appropriations:
Interim Equity dividend - -
Proposed Final Equity dividend - 137.23
Corporate Tax on dividend - 1.22
debenture Redemption Reserve 212.54 146.00
General Reserve - 129.19
Other Reserves 106.57 377.84
Surplus carried to Balance Sheet 9,755.39 10,385.18
Particulars Consolidated
Financial Year Financial Year
ended ended
31.03.2015 31.03.2014
Sales & other income 19,626.27 1,9351.94
Profit before finance cost and 5,685.42 5,522.46
depreciation
Profit/(Loss) before tax 368.89 2,512.01
Less: Provision of Tax (88.16) (618.21)
Profit/(Loss) after tax (1,454.59) 1,893.80
Balance brought forward from 18,501.07 17,735.07
previous year
Profit available for Appropriations 17,222.95 19,645.43
Appropriations:
Interim Equity dividend - 4.82
Proposed Final Equity dividend - 137.23
Corporate Tax on dividend - 24.14
debenture Redemption Reserve 337.54 33.50
General Reserve 32.68 156.83
Other Reserves 134.34 787.84
Surplus carried to Balance Sheet 16,718.39 18,501.07
There are no material changes and commitments affecting the financial
position which have occurred between the end of the Financial Year 2014
-15 and the date of this report.
RESULTS OF OPERATIONS
Steel : Production of finished steel
products during the year under review was 23,18,830 MT, as against
21,53,613 MT in the previous year, whereas production of semi steel
products was 30,82,302 MT, as against 28,85,779 MT in the previous
year.
Power : during the year under review, 7,339.82 million Kwh of power was
generated, as against 5,643.95 million Kwh of power in the previous
year.
Sponge Iron : Production of Sponge Iron during the year under review
was 16,60,913 MT, as against previous year''s production of 13,19,985
MT.
Pellets : 32,18,677 MT of pellets were produced during the year under
review, as against 41,48,974 MT in the previous year.
Machinery : Machinery division in Raipur unit produced 1,832 MT of
castings and has done machining of 11,564 MT, as against 1,791 MT and
14,033 MT, respectively in the previous year.
Mining : The mining of calibrated iron ore at captive mine at Tensa in
Odisha was 4.90 Lakhs MT as against previous year''s mining of 5.41
Lakhs MT. Coal mining at captive mine was 122.37 Lakhs MT as against
previous year''s mining of 122.25 Lakhs MT.
PROJECTS COMPLETED
Steel plant at Angul, Odisha
1. Your Company has following operational facilities under phase-I of
6 MTPA integrated steel plant at Angul in the state of Odisha:
a) 810 MW Power Plant (6x135MW), Plate mill (1.2 MTPA) and plate
leveller, Steel Melting Shop (1.5 MTPA) including 1x250 T EAF and ladle
furnace, RH Degasser and other associated facilities, along with 2300
MM wide Slab Caster, Oxygen Plant (2x1200 Tonnes/day), Lime & dolomite
Plant (2x500 Tonnes/day), Coal Washery (6 MTPA ROM), process boiler (I
& II) (3x180TPH), material handling system and housing colony.
b) direct Reduced Iron (DRI) Plant (1.8 MTPA) along with Coal
Gasification Plant 225,000 Nm3/HrBF (CGP). CGP is a unique facility
which converts indigenous high ash coal to syngas and used for steel
production in DRI Plant, which is first-of-its-kind technology used in
the world.
c) 29.4 Km cross country pipeline was commissioned in May 2014 which
supplies water from Samal barrage at Brahmani river to Angul Plant.
Steel plant at Raigarh, Chhattisgarh
1. Coal Washery with the annual capacity of 1.2 MTPA has been
modernized with an objective to upgrade it with the latest technology
in Coal Washeries and Energy conservation. This project was completed
in April 2014.
2. SMS-II and SMS-III has commissioned the most advanced technology of
EAF slag processing Slag Atomization Plant (SAP) in month of May 2014
and April 2015, respectively. The technology has been supplied by M/s
Ecomaister Co. Ltd.
3. The work towards the upgradation of Blast Furnace-I is being
expedited. various new facilities have been added to the system for
enhancing the performance. The technology for the modernization project
has been provided by M/s SDM, China and Mecon Limited.
4. Blast Pressure Recovery Turbine (BPRT) system has been installed
for utilizing the kinetic energy of top gas of blast furnace for
minimizing the energy consumption required for producing per ton of hot
metal. dry gas cleaning plant has been installed in place of the wet
system.
5. Slab Caster Project with maximum 3000mm wide has been commissioned
in the month of September, 2014 and has many state-of-the-art features.
Pellet plant at Barbil, Odisha
Pellet Plant - II having capacity of 4. 5 MTPA has been completed and
commissioned with wet grinding circuit.
Machinery division at Raipur, Chhattisgarh
Centrifugal casting machine has been commissioned which is capable of
casting pipe from ID 100 to 860 mm and Length 3000 to 6600 mm, EOT
Crane (10 MT) with 23 meter span in Foundry shop and Shell core shooter
machine for making mould for small object in Foundry Shop have also
been commissioned. CNC oxyfuel gas cutting machine for site work at
Angul, Bevelling machine, Embossing machine, UT machine for Quality
laboratory have also been installed for enhancing production capacity.
Shadeed Iron & Steel, Oman
Shadeed Iron & Steel LLC, Oman, a subsidiary company has commissioned a
2 MTPA steel melting shop, which includes a 200T capacity EAF, Ladle
Furnace, Vacuum Degassing and 1x8 strand Billet-cum-round caster.
PROJECTS Under IMPLEMENTATION
Steel plant at Raigarh, Chhattisgarh
With a view to increase the efficiency of the steel plant at Raigarh,
the following facilities are under implementation viz. head hardened
rails will be produced for high speed applications and Metro rails as
well as for exports; upgradation of plate mill for improvement in plate
and coil quality; and installation of new reheating furnace in Rail and
Universal Beam Mill.
Pellet plant at Barbil, Odisha
Rapid loading system and Fines conveying system from wagon tippler to
stock yard are under implementation.
Machinery Division at Raipur, Chhattisgarh
To enhance the capacity and productivity of unit following additional
equipment/ facilities are planned:
1. Upgradation of EOT crane-25/08 MT in bay no.-03
2. Load testing facility for EOT cranes
3. Reconditioning/up gradation of old equipment of sub-station and
control room
4. Plate bending machine for higher thickness bending of plate up to
120 mm thick
5. CNC Lathe machine for machining of higher diameter rope drum for
EOT Cranes
6. Equipment for QA laboratory for NABL accreditation of laboratory
7. Plate shearing machine
8. New pit furnace for hardening
9. Equipment for machine shop & assembly shop like Milling Head for
CNC floor type boring machine (PAMA), Milling head for CNC Sanko
machine, In-situ machine, Induction heater for shrink fitting
Shadeed Iron & Steel, Oman
Bar Mill of 1.4 MTPA capacity will be setup to make the Oman works as
fully integrated steel plant and the mill will be commissioned by the
year-end. The order has been placed with M/s Danieli.
DIVIDEND
In view of the losses during the Financial Year 2014-15, your Directors
have not recommended any dividend.
During the year, the unclaimed dividend of Rs. 36,33,996 pertaining to
the Financial Year 2006-07 has been transferred to the Investor
Education and Protection Fund, Government of India. The details
including last date of claiming of unclaimed / unpaid dividend amount
are given at the end of the Notice of the Annual General Meeting.
CREDIT RATING
Your Company''s domestic credit rating is ''AA'' (Under Watch) for the
long-term debt/ facilities/NCDs by Credit Analysis & Research Ltd.
(CARE). Your Company is also rated as ''AA-/Negative Outlook'' by CRISIL
Ratings and ''AA-'' Ratings watch with negative implications) by ICRA
Limited. CARE, CRISIL Ratings as well as ICRA Limited rated the
Company''s short term debt/facilities at the highest level of ''A1 ''
The ratings derive strength from the operational track record of the
group, cost competitiveness, flexibility derived from diversified
product portfolio and the Company''s efforts to reduce its dependence on
thermal coal, improve cost efficiency and de-leverage its balance
sheet.
CONSOLIDATED FINANCIAL STATEMENT
The Consolidated Financial Statement of your Company for the Financial
Year 2014- 15, is prepared in compliance with the applicable provisions
of the Companies Act, 2013, Accounting Standards and Listing Agreement
as prescribed by Securities and Exchange Board of India (SEBI).
SHARE CAPITAL
The paid up equity share capital as on March 31, 2015 was Rs. 91.49
crore. During the year under report, your Company has, on July 21,
2014, allotted 17,816 equity shares of Rs.1/- each in terms of
Company''s Employees Share Purchase Scheme - 2013. Relevant disclosures
in terms of SEBI (Share Based Employee Benefits) Regulations, 2014 are
given as Annexure - A to this report.
NON-CONVERTIBLE DEBENTURES
During the year under review, your Company has issued on private
placement basis 20,500 Listed Rated Non-Convertible Debentures (NCDs)
of Rs. 10,00,000/- (Rupees Ten Lakh only) each in 3(three) tranches
aggregating to Rs. 2,050 Crore. The said debentures have been listed on
BSE Limited under WDM segment.
The aggregate outstanding amount of NCDs of the Company as on March 31,
2015 was at Rs. 3,912 crore.
DEPOSITS
The Company has not accepted/received any deposits during the year
under report falling within the ambit of Section 73 of the Companies
Act, 2013 and the Companies (Acceptance of Deposits) Rules, 2014.
RELATED PARTY TRANSACTIONS
All related party transactions that were entered into during the year
were in the ordinary course of business and at an arm''s length basis.
During the year under review, the Company had not entered into any
contract / arrangement / transaction with related parties, which could
be considered as material in accordance with the provisions of the
Listing Agreement. Your Directors draw attention of the members to Note
41 to the financial statement which sets out related party disclosures.
Based on the recommendations of the Audit Committee, your Board of
Directors had approved the Policy on Related Party Transactions in
accordance with Clause 49 of the Listing Agreement and as per the
provisions of the Companies Act, 2013. The policy is uploaded at the
below weblink: http://www.jindalsteelpower.com/img/admin/report/pdf/
RPTpolicyJSPL.pdf
PARTICULARS OF LOANS, GUARANTEES OR INvESTMENTS
Details of Loans, Guarantees, Securities and Investments covered under
the provisions of Section 186 of the Companies Act, 2013 are given in
the notes to Financial Statement.
SUBSIDIARIES, ASSOCIATES AND JOINT VENTURES
A separate statement containing the salient features of Financial
Statements of Subsidiaries, Associates and Joint Ventures of your
Company forms a part of consolidated financial statement in terms of
Section 129 of the Companies Act, 2013. The names of companies which
have become or ceased to be its Subsidiaries, Joint Ventures or
Associate Companies are also disclosed in that statement.
The Financial Statements of Subsidiary Companies are kept open for
inspection by the shareholders at the Registered Office of your Company
during business hours on all days except Saturdays, Sundays and public
holidays upto the date of the Annual General Meeting (AGM) as required
under Section 136 of the Companies Act, 2013. Any member desirous of
obtaining a copy of the said financial statements may write to the
Company at its Registered Office. The financial statement including
the consolidated financial statement and all other documents required
be attached to this report have been uploaded in the website of your
Company viz. www. jindalsteelpower.com
Your Company does not have any material subsidiary companies as defined
under Clause 49 (V) (E) of the Listing Agreement. However, your
Company has framed a policy for determining ''material subsidiary'' and
the same is uploaded in the Company''s website at the following link:
http://www.jindalsteelpower.com/img/
admin/report/pdf/policy_on_material_ subsidiary.pdf
The details of major subsidiary companies are given below:
Jindal Power Limited
Jindal Power Limited, a subsidiary company (JPL) is operating 2,800 MW
power plant at Tamnar, Chhattisgarh.
1,000 MW (4x250MW) power plant generated 8,113 million units of power
representing 92.6% Plant Load Factor (PLF) as against 8,225.58 million
units of power representing 93.9% PLF in the previous year. This plant
has been ranked as fourth best performing power station among 25 major
operating stations in the country by Central Electricity Authority
(CEA) on PLF during the Financial Year 2014-15.
Commercial operation of first and second unit of 600 MW each of the
2400 MW (4X600 MW) thermal power project being set up in Tamnar,
Raigarh, Chhattisgarh was declared in March 2014. During Financial Year
2014-15, these units generated 2,523 million units of power.
Commercial operation of third unit of 600 MW of the 2400 MW (4X600 MW)
thermal power project was declared on January 15, 2015. With this, the
installed power generation capacity of JPL has increased to 2800 MW.
Test synchronization of fourth unit of 600 MW was achieved on March
26, 2015 and the unit achieved full load on March 28, 2015.
JPL''s 258 km, 400 kv double-circuit transmission line is being used as
an inter state transmission line belonging to the Western Region
Inter-state Transmission System. The Central Electricity Regulatory
Commission (CERC) has granted a
transmission license to the Company for carrying on business activity
and has fixed provisional tariff for its use. During the year under
review, JPL has earned transmission income of Rs. 45.44 crore from this
line.
during the year under review, JPL has recorded total revenue of Rs.
3,610.55 crore and the loss after tax was Rs. 170.83 crore.
Shadeed Iron & Steel LLC, Oman
Shadeed Iron & Steel LLC, Oman is operating 1.5 MTPA Hot Briquette Iron
plant and 2 MTPA Steel Melt Shop. It has recorded sales of Rs. 3,132.87
crore in the Financial Year 2014-15 and earned a profit after tax of
Rs. 316.57 crore.
Jindal Mining SA (Pty) Limited, South Africa
The Company, operating coal mine, recorded sales of Rs. 217.32 crore in
Financial Year 2014-15 and incurred a loss of Rs. 37.37 crore.
JSPL Mozambique Minerals LDA, Mozambique
The Company, operating coal mine, recorded sales of Rs. 232.39 crore in
Financial Year 2014-15 and incurred a loss of Rs. 191.72 crore.
Wollongong Coal Limited (formerly Gujarat NRE Coking Coal Australia
Limited)
The Company, operating the coal mine recorded sales of Rs. 46.31 crore
in Financial Year 2014-15 and incurred a loss of Rs. 761.82 crore.
With a view to ensure availability of coal and other raw materials, the
Company has, through its other subsidiaries, acquired exploration /
mining interests in Botswana, Indonesia, Madagascar, Namibia, Liberia,
Mauritania, Zambia and Tanzania.
DIRECTORS AND KEY MANAGERIAL PERSONNEL
Appointments
During the period under review, the Board of Directors of your Company
appointed four additional directors viz. Mr. Chandan Roy (Independent
Director), Mr. Rajiv Sharma and Mr. Shalil Mukund Awale (Nominee
Directors appointed by IDBI) and Mr. Rajeev Rupendra Bhadauria as
Additional and Wholetime Director. Mr. Ajit M. Ingle was appointed as
Nominee Director by IDBI Bank Ltd. w.e.f. May 3, 2014.
Your Directors recommend the appointment of Mr. Chandan Roy as an
Independent Director for a period of five years w.e.f December 19,
2014, Mr. Shalil Mukund Awale as a Non-Executive Director/ Nominee
Director and Mr. Rajeev Rupendra Bhadauria as a Director and Wholetime
Director for a period of three years w.e.f May 27, 2015 at the ensuing
AGM.
Key Managerial Personnel
Mr. Naveen Jindal, Chairman, Mr. Ravi Kant Uppal, Managing Director &
Group CEO, Mr. Rajeev Rupendra Bhadauria, Wholetime Director, Mr.
Dinesh Kumar Saraogi, Wholetime Director, Mr. Harish Dua, Acting CFO
and Mr. Jagdish Patra, Vice President & Group Company Secretary are the
Key Managerial Personnel of your Company in accordance with the
provisions of Section 2(51) and 203 of the Companies Act, 2013 read
with Companies (Appointment and Remuneration of Managerial Personnel)
Rules, 2014.
Mr. Jagdish Patra was appointed as Vice President & Group Company
Secretary of your Company w.e.f August 1, 2014 and Mr. Rajeev Rupendra
Bhadauria was appointed as an Additional Director and Wholetime
Director w.e.f May 27, 2015.
The details of the remuneration paid to the Key Managerial Personnel
appointed by your Company in accordance with the provisions of Section
203 of the Companies Act, 2013 are set out in this Report.
Resignations/Retirement
Mr. Rajiv Sharma and Mr. Ajit M. Ingle ceased to be the Nominee
Directors consequent to withdrawal of their Nomination by the IDBI Bank
Limited w.e.f. March 04, 2015 and October 20, 2014 respectively. Mr.
K. Rajagopal resigned from the position of Group CFO & Director of the
Company from the close of business hours of March 31, 2015.
Mr. T.K. Sadhu, Company Secretary superannuated from the services of
the Company w.e.f. July 31, 2014.
Your Directors would like to record their appreciation for the services
rendered by them.
Retirement by Rotation
In accordance with the provisions of Section 152 of the Companies Act,
2013 and in terms of the Articles of Association of the Company, Mr.
Naveen Jindal, Chairman and Mr. Ravi Kant Uppal, Managing Director &
Group CEO will retire by rotation at the ensuing AGM of your Company
and being eligible offer themselves for re- appointment as Directors of
your Company. The Board of Directors of the Company has recommended
their re-appointment.
BOARD EVALUATION
Pursuant to the provisions of the Companies Act, 2013 and Clause 49 of
the Listing Agreement, the Board has carried out an annual performance
evaluation of its own performance, the Directors individually and the
following Committees of the Board of Directors:
i) Audit Committee
ii) Nomination and Remuneration Committee
iii) Health, Safety, CSR and Environment Committee
iv) Stakeholders Relationship Committee and
v) Investment and Risk Management Committee.
The manner in which the evaluation has been carried out is explained in
the Corporate Governance Report.
MEETINGS OF THE BOARD AND AUDIT COMMITTEE
The details of the number of Board and Audit Committee Meetings of your
Company are set out in the Corporate Governance Report which forms part
of this report. The intervening gap between the meetings was within the
period prescribed under the Companies Act, 2013.
DECLARATION OF INDEPENDENCE
Your Company has received declarations from all the Independent
Directors that they meet the criteria of independence as laid down
under the Companies Act, 2013 read with Schedule and Rules made
thereunder, as well as Clause 49 of the Listing Agreement. The Board
considered the independence of each of the Independent directors in
terms of above provisions and is of the view that they fulfill the
criteria of independence.
REMUNERATION POLICY
In accordance with the provisions of Section 178 of the Companies Act,
2013 read with rules made thereunder and Clause 49 of the Listing
Agreement, the Board of directors have, on the recommendations of
Nomination and Remuneration Committee, formulated the policies for
Nomination and Remuneration of directors, KMP and Senior Management of
your Company. Remuneration policy of your Company is forming part of
the Corporate Governance Report.
Remuneration of Directors, Key Managerial Personnel and Particulars of
Employees
The information required to be disclosed in the directors'' Report
pursuant to Section 197 of the Companies Act, 2013 read with Rule 5 of
the Companies (Appointment and Remuneration of Managerial Personnel),
Rules, 2014, is set out in as an Annexure-B to this Report.
Having regard to the provisions of the first proviso to Section 136(1)
of the Companies Act, 2013, an abridged version of the Annual Report,
excluding the aforesaid information, is being sent to the members of
the Company and others entitled thereto. For those persons who have
registered their email addresses with the Company, the full version of
the Annual Report containing the aforesaid information is being sent to
them electronically. Members and other entitled persons who have not
registered their email addresses with the Company may access the full
version of the Annual Report upto the date of the ensuing Annual
General Meeting on the website of the Company or by physically
inspecting the full version of the Annual Report at the Registered
Office of the Company on all working days of the Company, between 10.00
am and 1.00 pm or by requesting a physical copy by writing to the
Company Secretary.
STATUTORY AUDITORS
M/s S. R. Batliboi & Co. LLP, Chartered Accountants (ICAI Firm
Registration No. 301003E), the Statutory Auditors of the Company, hold
office till the conclusion of the 40th Annual General Meeting. The
Board in terms of Section 139 of the Companies Act, 2013, on the
recommendation of the Audit Committee, has recommended for the
ratification by the Members, the appointment of M/s S. R. Batliboi &
Co. LLP, Chartered Accountants, Statutory Auditors from the conclusion
of the ensuing AGM till the conclusion of 37th AGM.
Comments/Qualification of the Auditors in their report and the notes
forming part of the Accounts are self-explanatory. Management
representation to these qualifications/comments are as follows:
(A) during the previous year, the Hon''ble Supreme Court vide its
judgement dated 25th August, 2014 read with its order dated 24th
September, 2014 had cancelled the allocation of certain Coal Blocks,
which were allotted from year 1993 onwards through Screening Committee.
The Supreme Court also directed the Coal block allottees to pay an
additional levy of Rs. 295 per MT on the coal extracted from the
operational mines. The review petition filed by the Company
and its subsidiary company JPL before the Hon''ble Supreme Court of
India against the order challenging cancellation of coal blocks and
imposing additional levy of Rs. 295 per MT on coal extracted with
retrospective effect, is still pending.
In the meanwhile, the Company has paid Rs. 3,089.25 crore (including
Rs. 1,099.42 crore paid by its subsidiary company JPL) under protest on
the Run of Mine coal extracted from the operational mines from the
commencement of coal mining in the year 1993 to September 30, 2014. Out
of the said amount, on the basis of the legal advise obtained by the
Company that additional levy of Rs. 295 per MT is payable only on coal
extracted and is not payable on shale, rejects and ungraded middlings,
an amount of Rs. 1,793.63 crore (including Rs. 1,024.72 crore related
to its subsidiary company JPL) computed on coal extracted excluding
shale, rejects and ungraded middling has been shown an exceptional item
in the Statement of Profit and Loss. The balance amount of Rs. 1,295.62
crore (including Rs. 74.70 crore related to its subsidiary company JPL)
being additional levy of Rs. 295 per MT on shale, rejects and ungraded
middlings has, accordingly, been shown as recoverable. On the same
principle, the Company has accrued additional levy of Rs. 118.01 crore
(including Rs. 79.15 crore payable by its subsidiary company JPL) based
on coal extracted excluding shale, rejects and ungraded middling from
1st October 2014 to 31st March 2015.
The Board of the Company, based on the legal advice, is sanguine of
obtaining appropriate relief in respect of the same.
(B) The Board is of the view that as of now there is no requirement for
adjustment to the carrying value of investment made in mining assets by
the company and difference, if any shall be accounted for when the
matter is finally settled.
COST AUDITORS
Your Board, on the recommendation of the Audit Committee, has appointed
M/s Ramanath Iyer & Co., (FRN 00019), Cost Accountants, for audit of
cost records of the Company for the Financial Year 2015-16.
In terms of Section 148 of the Companies Act, 2013 read with the
Companies (Audit and Auditors) Rules 2014, appropriate resolution
seeking your ratification of the remuneration of M/s Ramanath Iyer &
Co., (FRN 00019), Cost Accountants, is included in the Notice convening
the 36th AGM of the Company.
SECRETARIAL AUDITORS
Your Board, on the recommendation of the Audit Committee, has appointed
M/s MZ & Associates, Company Secretaries to conduct the Secretarial
Audit of your Company. The Secretarial Audit Report is annexed herewith
as Annexure - C'' to this Report. The Secretarial Audit Report does not
contain any qualification, reservation or adverse remark.
RISK MANAGEMENT
The Company has in place a robust risk management framework which
identifies and evaluates business risks and opportunities. The Company
recognizes that these risks need to be managed and mitigated to protect
the interest of the shareholders and stakeholders, to achieve business
objectives and enable sustainable growth. The risk management framework
is aimed at effectively mitigating the Company''s various business and
operational risks, through strategic actions. Risk management is
embedded in our critical business activities, functions and processes.
The risks are reviewed for the change in the nature and extent of the
major risks identified since the last assessment. It also provides
control measures for risk and future action plans.
Pursuant to the provisions of the Companies Act, 2013 and Clause 49 of
the Listing Agreement, the Company has a Risk Management Committee of
the Board, which looks after the identification of risks and their
mitigation planning. More details about this Committee and its role and
responsibilities are given in the Corporate Governance Report.
INTERNAL FINANCIAL CONTROLS
The Company has in place adequate internal financial controls with
reference to financial statements. During the year, such controls were
tested and no reportable material weakness in the design or operations
were observed.
CORPORATE SOCIAL RESPONSIBILITY (CSR)
The Annual Report on the Corporate Social Responsibility (CSR)
activities for the Financial Year 2014-15 as required under Section 134
and 135 of the Companies Act, 2013 read with Rule 8 of the Companies
(Corporate Social Responsibility Policy) Rules, 2014 and Rule 9 of the
Companies (Accounts) Rules, 2014 is attached to this Report as
Annexure-F''.
SIGNIFICANT AND MATERIAL ORDERS PASSED BY THE REGULATORS OR COURTS
There are no other significant material orders passed by the
Regulators/Courts which would impact the going concern status of the
Company and its future operation except as follows:
De-Allocation of Coal Blocks
Following the petition by M L Sharma vs The Principal Secretary & Ors
and subsequent other Writs, the Hon''ble Supreme Court vide its
judgement dated 25th August, 2014 read with its order dated 24th
September, 2014 had cancelled the allocation of Coal Blocks those were
allotted from 1993 onwards through Screening Committee. Following the
order of the Hon''ble Supreme Court, the Central Government had
promulgated The Coal Mines (Special Provisions) Ordinance, 2014 [now an
Act], conferring power upon the Government to auction the Coal Blocks
falling into Schedule-1 consisting of 204 Coal Blocks as mentioned in
the said Act.
Subsequently, the Government proceeded with the Auction of Coal Blocks
falling under Schedule II consisting of total 42 Coal Blocks and as
notified through circular of Ministry of Coal. The sale of tender
document took place from 27th december 2014 and Company and its
subsidiary Jindal Power Limited (JPL) participated in the said auction
process where the Electronic Bidding commenced from 14th February 2015
and ended on 22nd February 2015 in which JPL won Gare Palma Iv/2 & Iv/3
Coal Block. Likewise after going through all procedural formalities as
mentioned in the Tender document and as prescribed in The Coal Mines
(Special Provision) Ordinance, JPL made the winning bid for Tara Coal
Block and the result was declared via MSTC web-site (the Coal Block
Auction Platform).
Similarly the tender document sale of Schedule-III Coal Blocks,
consisting of total 59 Coal Blocks started on 07th January 2015 and the
Electronic Auction took place from 04th March 2015 to 09th March 2015
consisting of only 13 coal blocks in the 1st phase. The Company and JPL
participated in the said auction process.
However, on 20th March 2015, JPL received a letter via E-mail from the
office of Nominated Authority wherein it was conveyed that JPL was not
declared successful bidder for Gare Iv/2 & Iv/3 and Tara Coal Block on
ground that the highest bidder does not reflect fair value, which has
been challenged in Hon''ble High Court of delhi and the matter is
sub-judice.
despite the aforesaid challenges faced by the Company during the
previous year, your Company is fully geared to cater to the coal
requirement of its entire planned generation though Coal Linkage and
e-auction etc. The Board of the Company is sanguine about winning more
Schedule- III Coal Blocks, which are planned to be auctioned in the
subsequent rounds.
DIRECTORS'' RESPONSIBILITY STATEMENT
Pursuant to Section 134(3)(c) of the Companies Act, 2013, the directors
state:-
(a) that in the preparation of the annual accounts for the year ended
March 31, 2015, the applicable accounting standards and Schedule III to
the Companies Act, 2013, have been followed and there are no material
departures from the same;
(b) that the directors have selected such accounting policies and
applied them consistently and made judgments and estimates that are
reasonable and prudent so as to give a true and fair view of the state
of affairs of your Company as at March 31, 2015 and of the loss of the
Company for the year ended on that date;
(c) that proper and sufficient care has been taken for the maintenance
of adequate accounting records in accordance with the provisions of
Companies Act, 2013 for safeguarding the assets of your Company and for
preventing and detecting fraud and other irregularities;
(d) that the annual accounts have been prepared on a going concern
basis;
(e) that proper internal financial controls laid down by the Directors
were followed by the Company and that such internal financial controls
are adequate and were operating effectively; and
(f) that proper systems to ensure compliance with the provisions of all
applicable laws were in place and that such systems were adequate and
operating effectively.
OTHER INFORMATION
Business Responsibility Report
As stipulated under the Listing Agreement, the Business Responsibility
Report describing the initiatives taken by the Company from
environmental, social and governance perspective is attached as part of
the Annual Report.
Compliance with Clause 49 of the Listing Agreement- Corporate
Governance
The Company is committed to maintain the highest standards of corporate
governance and adhere to the corporate governance requirements set out
by SEBI. The Company has also implemented several best corporate
governance practices as prevalent globally. The report on Corporate
Governance as stipulated under the Listing Agreement forms an integral
part of this Report. The requisite certificate from M/s MZ &
Associates, Company Secretaries in practice confirming compliance with
the conditions of corporate governance is annexed herewith as ''Annexure
H'' to this Report.
Management Discussion and Analysis Report
Management Discussion and Analysis Report for the year under review, as
stipulated under Clause 49 of the Listing Agreement with the Stock
Exchanges in India, is annexed herewith as ''Annexure G'' to this Report.
Audit Committee and other Committees
The Composition of Audit Committee and other Committees is provided in
the Corporate Governance Report forming part of this Report.
Whistle Blower & vigil Mechanism
Your Company has a vigil mechanism in place namely, Group Whistle
Blower Policy (GWB) to provide platform to Directors and Employees to
raise concerns regarding any discrimination, victimisation,
irregularity, misconduct, unethical matters and other unfair practices.
The Group Whistle Blower policy as approved by the Board of Directors
is uploaded on the Company''s website under the weblink:
http://www.jindalsteelpower. com/img/admin/governance/pdf/whistle.
pdf
Conservation of Energy, Technology Absorption and Foreign Exchange
Earnings and Outgo
The information on conservation of energy, technology absorption and
foreign exchange earnings and outgo as stipulated under Section
134(3)(m) read with Rule 8 of the Companies (Accounts) Rules 2014 is
annexed herewith as ''Annexure D'' to this Report.
Prevention of Sexual Harassment at Workplace
As per the requirement of the Sexual Harassment of women at Workplace
(Prevention, Prohibition and Redressal) Act, 2013 and the Rules made
thereunder, your Company has constituted Internal Complaints Committee
having designated independent member to redress complaints regarding
sexual harassments. During the year, one complaint was received by the
ICC and the same was investigated and resolved as per the provisions of
the Act.
Listing
The equity shares are listed on the BSE Limited (BSE) and the National
Stock Exchange of India Limited (NSE). Both these stock exchanges have
nation-wide terminals and therefore, shareholders / Investors are not
facing any difficulty in trading in the shares of the Company from any
part of the country. The Company has paid annual listing fee for the
financial year 2015-16 to the BSE & the NSE.
Extract of the Annual Return
The details forming part of the extract of the Annual Return in Form
No. MGT - 9 in accordance with the provisions of Section 92 of the
Companies Act, 2013 read with the Companies (Management and
Administration) Rules, 2014, are set out herewith as ''Annexure-E'' to
this Report.
Cautionary Statement
Statements in the Board''s Report and the Management Discussion &
Analysis describing the Company''s objectives, expectations or forecasts
may be forward- looking within the meaning of applicable securities
laws and regulations. Actual results may differ materially from those
expressed in the statement. Important factors that could influence the
Company''s operations include global and domestic demand and supply
conditions affecting selling prices of finished goods, input
availability and prices, changes in government regulations, tax laws,
economic developments within the country and other factors such as
litigation and industrial relations.
Acknowledgements
The Directors wish to place on record their appreciation for the
sincere services rendered by employees of the Company at all levels.
Your directors also wish to place on record their appreciation for the
valuable co-operation and support received from the Government of India
various State Governments, the Banks/ Financial Institutions and other
stakeholders such as, shareholders, customers and suppliers, among
others. The directors also commend the continuing commitment and
dedication of the employees at all levels, which has been critical for
the Company''s success. The directors look forward to their continued
support in future.
For and on behalf of the Board of directors
Naveen Jindal
Chairman
Place: New Delhi
Dated: May 27, 2015
Mar 31, 2014
Dear Members,
The Directors are pleased to present the 35th Annual Report together
with the Statement of Accounts for the year ended on 31st March, 2014.
AUDITED FINANCIAL RESULTS
(Rs. in Crore)
Particulars Standalone Consolidated
Financial Financial Financial Financial
Year ended Year ended Year ended Year ended
31.03.2014 31.03.2013 31.03.2014 31.03.2013
Sales & other income 14,690.87 15,113.98 20,069.67 19,943.20
Profit before finance
cost 3,905.71 4,097.73 5,522.46 6,130.83
and depreciation
Profit before tax 1,600.64 2,228.50 2,512.01 3,833.45
Profit afer tax 1,291.95 1,592.55 1,893.80 2,911.62
Appropriations:
Interim dividend - - 4.82 4.82
Final dividend 137.23 149.57 137.23 149.57
Corporate tax on
dividend 1.22 3.32 24.14 25.20
General reserve 129.19 175.00 156.83 175.00
DIVIDEND
Your Directors recommend a dividend of Rs. 1.50/- per equity share of Rs.
1/- each i.e. 150% for the financial year 2013-14. The total dividend
pay-out for the year will amount to Rs. 137.23 crore (excluding dividend
tax).
BUYBACK OF SHARES
The Board of Directors of the Company had, in its meeting held on 30th
August, 2013, approved the Buyback of its fully paid-up Equity Shares
of the face value of Rs. 1/- each, from the open market through stock
exchanges for a total consideration not exceeding Rs. 1,000 crore, and at
a price not exceeding Rs. 261/- per Equity Share, payable in cash. The
Company commenced its scheme of buy-back of Equity Shares from 16th
September, 2013 and closed on 18th February, 2014. The Company has
bought back a total of 1,99,59,584 Equity Shares (2.13%) from its
shareholders at an average price of Rs. 250.91. All shares bought back
under buyback were duly extnguished. The paid up capital of the Company
afer buyback is Rs. 91,48,85,984.
ISSUING OF SHARES
The Company has, in terms of Company''s Employees Share Purchase
Scheme-2013, alloted 11,750 equity shares of Rs. 1/- each on 31st July,
2013. Relevant disclosures in terms of Clause 19 of the Securites and
Exchange Board of India (Employee Stock Option Scheme and Employee Stock
Purchase Scheme) Guidelines, 1999 is given as annexure  I to this
report
OPERATIONAL REVIEW
The Company has, on a consolidated basis, achieved an aggregate income
of Rs. 20,069.67 crore compared to previous year''s Rs. 19,943.20 crore.
Profit before tax is Rs. 2,512.01 crore in 2013-14 as compared to Rs.
3,833.45 crore in 2012-13. Profit afer tax is Rs. 1,893.80 crore in
2013-14 as compared to Rs. 2,911.62 crore in 2012-13. The Reserves and
Surplus have touched Rs. 22,519.05 crore.
Sponge Iron
The Company produced 13,19,985 MT of Sponge Iron during the year under
report as against previous year''s production of 13,19,976 MT and
achieved a capacity utlisation of about 96.35%.
Pellet
The Company produced 41,48,974 MT of pellets during the year under
report as against 40,42,025 MT in the previous year.
power
The Company generated 5,643.95 million Kwh of power during the year
under report as against last year''s 6,027.82 million Kwh of power.
Raipur Unit
Raipur Unit produced 1,791 MT of castngs and has done machining of
14,033 MT as against 1,933 MT and 12,510 MT respectvely in the previous
year.
Mining
The production of calibrated iron ore at captve mine at Tensa in Odisha
was 5.41 lacs MT as against previous year''s production of 5.64 lacs MT.
Coal production at captve mine was 59.99 lacs MT and was close to last
year''s production.
PROJECTS COMPLETED
1. Steel Plant at Angul, Odisha
Your Company has completed the following facilites under phaseÂI of
integrated steel plant being set up at Angul in the state of Odisha
viz. 810 MW Power Plant (6x135MW),
Plate Mill (1.2 MTPA) and plate leveller, Steel Melting Shop including
1x250 T EAF and ladle furnace, RH Degasser and other associated
facilites along with 2300 MM wide Slab Caster, Oxygen Plant (2x1200
Tones/day), Lime & Dolomite Plant (2x500 Tones/day), Coal Washery (6
MTPA ROM), process boiler (I & II) (3x180TPH), material handling system
and housing colony. Plate mill is in operation since August, 2013 and
its products are well accepted in the market.
All other facilites like normalising and quenching furnace & tempering
furnace in the Plate Mill, intake pump house with 30 K.M. long cross
country water pipeline from Samal Barrage to the plant and light weight
aggregate plant will be commissioned by end of June, 2014 and the plant
will be fully operational during the current year.
2. Steel Plant at Raigarh, Chhatisgarh
With a view to overhaul and upgrade the existng 3 MTPA steel plant at
Raigarh, some facilites have been modernised / added, such as,
normalising furnace (200 TPH) and Cold leveler in the Plate Mill,
Sinter plant capacity enhancement from 204m2 to 224m2, modernisation of
EAF-1 & FES system for increasing the capacity for beter operational
efficiency and emission control, 1.2 MTPA coal washery (revamping) has
also been commissioned. A major repair of Blast Furnace No. 2 was also
undertaken successfully.
3. Pellet plant at Barbil, Odisha
4.5 MTPA pellet plant has been completed and trial run is being
conducted. It will be fully operational by June, 2014.
4. Steel Melting shop at Oman
Shadeed Iron and Steel LLC, Oman, a subsidiary company, has completed
the construction of 2 MTPA steel Melting shop which includes a 200 t
capacity EAF, Ladle Furnace, Vacuum Degassing and 1x8 strand
Billet-cum-round caster. This is now under commissioning and will be
fully operational by June, 2014.
5. Machinery division at Raipur, Chhatisgarh
EOT crane 25x8 T(2 nos) have been commissioned, radial drill machine
(7.5 KW, 50MM), tools and tackles / electric sprayer / Magnetc power
drill for assembly, portable stress reliving machine for fabrication and
universal tool and cuter grinding machine have been installed. This
will further enhance the productvity of the division.
PROJECTS UNDER IMPLEMENTATION
1. Steel Plant at Angul, Odisha
As a part of current expansion to reach plant capacity of 6 MTPA, the
following additional facilites have been planned at Angul, viz. Billet
Caster (1x8 strand), Coke Making Plant (2.0 MTPA), Sinter Plant (4.0
MTPA), Blast Furnace (3.2 MTPA), DRI Plant based on coke oven gas &
synthesis gas (2.0 MTPA), Steel Melting Shop-II, NSM-Combined, Thin Slab
Castng and Rolling Plant, Lime & Dolomite Plant (1,800 tonnes/day) and
Oxygen Plant (2x1,800 tonnes/day).
2. Steel plant, Raigarh, Chhatisgarh
With a view to increase the efficiency of the steel plant at Raigarh, the
following facilites are planned viz. increase in inner volume of BF-1
from 446 Cub Mt to 686 Cub Mt, modernisation of slab caster, upgradation
of plate mill to improve capacity from 1 MTPA to 1.2 MTPA and Coil
rolling upto 3000 MM width, upgradation of rail head hardening and setng
up of 100% BF gas based reheatng furnace with a capacity of 225 TPH
which will result in eliminatng use of liquid fuel in Rail and
Universal Beam Mill.
3. Machinery Division, Raipur
EOT crane of 10 Ton capacity for improving centrifugal castng
productvity and centrifugal castng machine for increasing the capacity
of manufacturing of centrifugally casted products will be commissioned
during the current fnancia year.
4. Shadeed Iron & Steel, Oman
Shadeed Iron & Steel Co. LLC, Oman, a subsidiary company is operating
1.5 MTPA Hot Briquete Iron ore Plant at Sohar Oman. It has commissioned
a 2 MTPA Steel Melting Shop a its existng works on 23rd April, 2014.
Further, a Bar Mill o 1.4 MTPA capacity has been ordered on M/s Danieli
in order to make the Oman works as fully integrated steel plant. The
project is under implementation.
DE-ALLOCATION OF COAL BLOCKS
The Ministry of Coal, Government of India, (MoC) is making periodical
review of the development of allocated coal blocks as well as that of
associated end use projects. Recently Cabinet Commitee on Investments
(CCI) also specified a certain tme line for obtaining statutory
clearances and in case same were not obtained by any of the project
proponents, the coal blocks were de-allocated by MoC. Accordingly,
following coal blocks, alloted to the Company individually or jointly
with other Companies, have been recommended for de-allocation and/or
de-allocated:
SUBSIDIARY COMPANIES AND THEIR BUSINESS Jindal Power Limited:
The Company is operating 1,000 MW (4 X 250 MW) power plant in Raigarh
(Chhatisgarh) and has closed the Financial Year 2013- 14 with a total
revenue of Rs. 2,736.21 crore and earned a Profit afer tax of Rs. 1,106.72
crore. It is expanding its power Generation capacity by setng up 2,400
MW (4 X 600 MW) power plant adjacent to its existng 1000 MW Power
Plant. Three units of 600 MW each have been completed. It is
implementng hydro power projects in the State of Arunachal Pradesh in a
Joint Venture with Hydro Power Development Corporation of Arunachal
Pradesh Limited and exploring setng up thermal power plants in West
Africa. JPL has also acquired 74% stake in Kineta Power Limited
(formerly known as Kineta Power Private Ltd.) which has received EC for
setng up a 1980 MW (3 units of 660 MW each) Thermal Power Plant in the
State of Seemandhra.
Supply of coal for 1000 MW power plant is sourced from its captve coal
mines which are located in close proximity to the power plant and which
have geological reserves of approximately 246 million tons. The Gare
Palma IV/2 and IV/3 mines have been leased to JPL for 30 years by the
Ministry of Coal, Govt. of India from the date of the lease agreement,
dated 7th October, 2005 and are operated by the Company. Coal is
transported from these mines to the power plant over a distance of
approx 6.9 Km through conveyor pipe.
JPL from 1000 MW power plant has signed medium term Power Purchase
Agreement (PPA) with The Tamil Nadu Generation and Distribution
Corporation Limited for 200 MW. Balance power is sold through a mix of
(medium-term and short-term PPAs), power exchanges, state-owned utlites
and power Distribution and trading companies.
Coal linkage for coal requirements for two units of 600MW each of 2400
MW power plant has been received and fuel supply agreements have been
signed with South Eastern Coalfields Ltd. and Mahanadi Coalfields Ltd for
supply of 4.812 MTPA of coal. The company plans to meet the coal
requirements of the remaining two units of 600MW each initally by
importng the coal requirement tll domestc coal linkage from the
Ministry of Coal is granted. The company''s coal linkage request for
these two units is pending with Long Term Standing Linkage Commitee of
the Ministry of Coal. Company has long term PPA with The Tamil Nadu
Generation and Distribution Corporation Limited for 400 MW power. The
balance power will be sold through bilateral contracts (both medium
term and short term) and power exchanges and tll the tme company enters
into long term PPAs.
Shadeed Iron & Steel LLC, Oman:
The Company, operating 1.5 MTPA Hot Briquete Iron ore plant achieved a
sales of Rs. 3,200.41 crore in the financial year 2013-14 and earned a
Profit afer tax of Rs. 274.38 crore.
Jindal Mining SA (Pty) Limited, South Africa:
The Company, operating coal mine, achieved sales of Rs. 351.11 crore in
financial year 2013-14 and earned a Profit afer tax of Rs. 21.93 crore.
JSPL Mozambique Minerals LDA, Mozambique:
The Company, operating coal mine, achieved a sales of Rs. 244.54 crore in
financial year 2013-14 and incurred a loss of Rs. 183.46 crore.
Wollongong Coal Limited (formerly Gujarat NRE Coking Coal Australia
Limited):
The Company, operating coal mine, became subsidiary of the Company from
15th November, 2013. It achieved a sales of Rs. 277.36 crore during the
period from 15th November, 2013 to 31st March, 2014 and incurred a loss
of Rs. 175.64 crore.
With a view to ensure availability of coal and other raw materials, the
Company has, through its other subsidiaries, acquired exploration /
mining interests in Botswana, Indonesia, Madagascar, Namibia, Liberia,
Mauritania, Zambia, Tanzania.
TRANSFER TO INVESTOR EDUCATION AND PROTECTION FUND
Pursuant to Section 205C of the Companies Act, 1956, the Company has
transferred unpaid / unclaimed fnal dividend for Financial Year 2005-06
and interim dividend for financial year 2006-07 amountng to Rs.
31,19,980/- (Rupees thirty one lac nineteen thousand nine hundred
eighty only) and Rs. 19,76,856/- (Rupees nineteen lac seventy six
thousand eight hundred ffy six only) respectvely to Investor Education
and protection Fund of the Government of India. Company has also
transferred Rs. 27,527/- (Rupees twenty seven thousand fve hundred twenty
seven only) in respect of unclaimed repayment and interest on fixed
deposit to the said fund. The details including last date of claiming
of unclaimed / unpaid dividend amount is given at the end of the Notce
of the Annual General meeting.
LISTING
The equity shares contnue to be listed on the BSE Limited (BSE) and the
national Stock Exchange of India Limited (NSE). Both these stock
exchanges have nation-wide terminals and therefore, shareholders /
Investors are not facing any difficulty in trading in the shares of the
Company from any part of the country. The Company has paid annual
listng fee for the financial year 2014- 15 to BSE & NSE.
FIXED DEPOSITS
The Company has not accepted/received any fresh deposits during the
year under report. There was no amount outstanding in respect of fixed
deposits as on 31st March, 2014.
DIRECTORS
Shri Ratan Jindal and Smt. Shallu Jindal, Directors of the Company will
retre by rotation at the forthcoming Annual General meeting and being
eligible have ofered themselves for re-appointment as Directors of the
Company, liable to retre by rotation, in the said meeting. Shri K.
Rajagopal was appointed as director in casual vacancy and holds office up
to the ensuing Annual General meeting. The Company has received a notce
under Section 160 the Companies Act, 2013 from a member signifying the
candidature of Shri K. Rajagopal for appointment as director of the
Company, liable to retre by rotation in the ensuing annual general
meeting.
INDEPENDENT DIRECTORS
Pursuant to Section 149 of the Companies Act, 2013 (new Act) read with
the Rules made thereunder, the Independent Directors shall hold office
for a period of up to 5 consecutve years and shall not be liable to
retre by rotation. They may be appointed for a maximum of two consecutve
terms of up to 5 years each. In terms of revised clause 49 of the
listng agreement which will be applicable from 01st October, 2014, in
case the Independent Director has already served for 5 or more years,
he can be appointed for only one term of 5 years. As per new Act, the
Nominee Director is not considered to be an Independent Director.
Presently, Shri R. V. Shahi, Shri A K Purwar, Shri Arun Kumar, Shri S K
Garg, Shri Haigreve Khaitan and Shri Hardip Singh Wirk are the
Independent Directors of the Company. As per their existng terms of
appointment, all of them are liable to retre by rotation. However, under
the new Act and Clause 49 of listng agreement, they may be appointed
afresh with a fixed period of up to 5 years.
The Board considered the independence of each of the above mentioned
Directors in terms of Section 149 and Schedule IV to the Companies Act,
2013 and Clause 49 of the listng agreement and was of the view that the
proposed directors fulfill the criteria of independence as mentioned in
the above provisions and can be appointed as Independent Directors. All
the proposed directors possess requisite qualifcations, appropriate
skills, experience and knowledge in one or more fields of finance, law
management, marketng, administration, technical operations and other
disciplines related to Company''s business. Keeping in view, the
Educational / professional qualifcations, working experience, expertse in
line with Company''s business, positve atributes, already being on the
Board of the Company and benefits that the Company will derive with
their appointment, the Board has recommended their appointment as
Independent Directors of the Company to hold office for a term of fve
consecutve years commencing from the date of 35th Annual General meeting
of the Company.
PARTICULARS OF CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND
FOREIGN EXCHANGE EARNINGS AND OUTGO
Information pursuant to Section 217(1) (e) of the Companies Act, 1956
read with Rule 2 of the Companies (Disclosure of Partculars in the
Report of Board of Directors) Rules, 1988 regarding conservation of
energy, technology absorption and foreign exchange earnings and outgo is
given in Annexure-II forming part of this report.
PARTICULARS OF EMPLOYEES
In terms of the provisions of Section 217(2A) of the Companies Act,
1956, read with the Companies (Partculars of Employees) Rules, 1975 as
amended from tme to tme, the partculars of employees are set out in
Annexure-III to this Report. However, as per provisions of Section
219(1)(b)(iv) of the said Act read with Clause 32 of the Listng
Agreement, the Annual Report excluding the aforesaid Information is
being sent to all the members of the Company and others enttled
thereto. Any member interested in obtaining such partculars may write
to the Company.
CORPORATE GOVERNANCE
Your Company has implemented the conditions of Corporate Governance as
contained in Clause 49 of listng agreement. Separate reports on
Corporate Governance and Management Discussion and Analysis along with
necessary certificates are given elsewhere in this Annual Report as
Annexure IV & V. In terms of Clause 55 of listng agreement, a Business
Responsibility Report describing initatve taken by the Company from
environmental, social and governance perspectve is also included
elsewhere in this Annual Report as Annexure VI.
AUDITORS
M/s S. S. Kothari Mehta & Co., Chartered Accountants, (Firm registration
No. 000756N) Statutory Auditors of the Company, will retre at the
conclusion of ensuing Annual General meeting of the Company. They have
been statutory auditors of the Company since 1998. They have informed
the Board that with a view to uphold the highest standards of corporate
governance and changes under the Companies Act, 2013, they would not
like to ofer themselves to be re-appointed as auditors in the
forthcoming Annual General meeting of the Company. The Company has
received a Special Notce under Section 140 (4) read with Section 115 of
the Companies Act, 2013 from M/s Gagan Infraenergy Limited in the
capacity as a member of the Company proposing a resolution at the
ensuing Annual General meeting for appointment of M/s. S. R. Batliboi &
Co. LLP, Chartered Accountants as statutory auditors in place of M/s
S.S. Kothari Mehta & Co. Chartered Accountants, the retring statutory
auditors. M/s. S. R. Batliboi & Co. LLP, have agreed to and given their
consent for their appointment as statutory auditors of the Company.
M/s S. S. Kothari Mehta & Co. have maintained the highest level of
governance and substantally contributed in to the efforts of the Company
towards strengthening the internal controls, processes and procedures
in line with expanding size of operations. The
Board places on record its deep sense of appreciation for the services
rendered and guidance given by them as statutory auditors of the
Company.
In terms of Section 139(2) of the Companies Act, 2013, the Board has
recommended that M/s S. R. Batliboi & Co. LLP may be appointed as
statutory auditors of the Company for a period of fve consecutve years
from the conclusion of the Thirty fifth Annual General meeting up to the
conclusion of the Forteth Annual General meeting, subject to ratfication
at each Annual General meeting, at a remuneration that may be decided by
the shareholders
DIRECTORS'' RESPONSIBILITY STATEMENT
Pursuant to the requirements under sub Section 2AA of Section 217 of the
Companies Act, 1956, with respect to the Directors Responsibility
Statement, it is hereby confirmed:-
i) that in preparation of the annual accounts for the financial year
ended on 31st March, 2014, the applicable accountng standards had been
followed along with proper explanations relatng to material departures.
ii) that the Directors had selected such accountng policies and applied
them consistently and made judgments and estmates that are reasonable
and prudent so as to give a true and fair view of the state of afairs
of the Company at the end of the financial year and of the Profit of the
Company for the year under report.
iii) that the Directors had taken proper and sufcient care for the
maintenance of adequate accountng records in accordance with the
provisions of the Companies Act, 1956 for safeguarding the assets of
the Company and by preventng and detectng fraud and other
irregularites.
iv) that the Directors had prepared the accounts for the financial year
ended on 31st March, 2014 on a ''going concern basis''.
APPRECIATION
Your Directors wish to place on record their grattitude for the valuable
guidance and support rendered by the Government of India, various State
Government departments, Financial Institutions, Banks and various
stakeholders, such as, shareholders, customers and suppliers, among
others. The Directors also commend the contnuing commitment and
dedication of the employees at all levels, which has been critcal for
the Company''s success. The Directors look forward to their contnued
support in future.
For & on behalf of the Board
Naveen Jindal
Chairman
Place: New Delhi
Dated: 29th April, 2014
Mar 31, 2012
The Members,
The Directors are pleased to present the 33rd Annual Report together
with the Statement of Accounts for the year ended on 31st March, 2012.
AUDITED FINANCIAL RESULTS
(Rs. in Crore)
Particulars Standalone Consolidated
Financial financial Financial Financial
Year ended Year ended Year ended Year ended
31.03.2012 31.03.2011 31.03.2012 31.03.2011
Sales & other income 13,518.43 9,717.34 18,350.53 13,193.60
Profit before
interest and
depreciation 4,246.95 3,725.72 6,935.11 6,398.17
Profit before tax 2,843.01 2,753.36 5,188.60 4,988.02
Profit after tax 2,110.65 2,064.12 4,002.26 3,804.01
Appropriations:
Interim dividend - - 4.82 4.29
Final dividend 149.46 140.19 149.46 140.19
Corporate tax
on dividend 3.15 3.75 25.03 23.44
General reserve 220.00 210.00 222.54 211.65
FURTHER ISSUE OF CAPITAL
During the period under report the Company has allotted 3,24,223 equity
shares of Rs. 1/- each on 12th December, 2011 against options granted
under the Company's Employee Stock Option Scheme- 2005.
DIVIDEND
Your Directors recommend a dividend of Rs. 1.60 per equity share of Rs. 1/-
each i.e. 160% for the financial year 2011-12. The total dividend
pay-out for the year will amount to Rs. 149.46 crore (excluding dividend
tax).
OPERATIONAL REVIEW
The Company has, on a consolidated basis, achieved an aggregate income
of Rs. 18,350.53 crore compared to previous year's Rs. 13,193.60 crore.
Profit before tax has increased to Rs. 5,188.60 crore in 2011-12 from Rs.
4,988.02 crore in 2010-11. Profit after tax has also grown to Rs.
4,002.26 crore in the year under report from Rs. 3,804.01 crore in the
previous year. The Reserves and Surplus have touched Rs. 18,017.63 crore.
Sponge Iron
The Company produced 13,19,940 MT of Sponge Iron during the year under
report as against previous year's production of 13,19,840 MT and
achieved a capacity utilisation of 96.35%.
Steel
The production of steel products during the year under report, compared
to previous year is given below:
SI.
No. Product Production in MT
(2011-12) (2010-11)
1. Finished steel products 19,44,434 15,85,327
2. Semi steel products 27,56,881 22,72,692
Pellet
The Company produced 37,36,915 MT of pellets during the year under
report as against 27,87,285 MT in the previous year.
Power
The Company generated 4,634 million Kwh of power during the year under
report as against last year's 3,420 million Kwh of power.
Raipur Unit
Raipur Unit produced 1,778 metric tons of castings and has done
machining of 9,060 metric tons during the year under report as against
1,569 metric tons and 8,613 metric tons respectively in the previous
year.
Mining
The production of calibrated iron ore at captive mine at Tensa in
Odisha was 5.06 lacs MT as against previous year's production of 6.69
lacs MT. The Company has exported 2.45 lacs MT of iron ore fines as
against 8.42 lacs MT in the previous year. Coal production at captive
mine was 59.98 lacs MT as against previous year's production of 59.99
lacs MT.
PROJECTS COMPLETED
Following projects were completed during the year under report:
1. Power Plants
(i) 540 MW (4X135 MW) power plant at Dongamahua, Raigarh Chhattisgarh:
Under PhaseÃII, Unit I and II of 135 MW each power generation capacity
were commissioned in January, 2012. Both the Units have stabilised
their operations. With this, all the four Units of 135 MW each power
generation capacity set up at Dongamahua, Raigarh, Chhattisgarh are
operational and generating power.
(ii) 810 MW (6x135 MW) power plant at Angul, Odisha: The Company is
setting up 810 MW (6x135 MW) captive power plant at Angul, Odisha for
meeting power requirement of its upcoming 6 MTPA integrated steel
plant. Second Unit of 135 MW power generation capacity was commissioned
in February, 2012. With this, two units of 135 MW each are operational
and generating power. Third Unit of 135 MW power generation capacity is
expected to be commissioned in July, 2012.
2. Machinery Division, Raipur, Chhattisgarh
The production capacity of Machinery Division of Raipur Unit has been
enhanced from 5,100 metric tons per annum to 10,000 metric tons per
annum by making investment in machine tools, expansion of covered area
and material handling equipment. The Company has received IBR
Certification as manufacturer of headers of Boilers and foundry items.
This Division is envisaging further expansion of its capacity by
inclusion of more covered area and material handling facility and has
planned to install Alfa Set Sand System in foundry for further
improvement in product quality. The Pressure Vessel Division with a
capacity of 2,500 metric tons per annum has started commercial
operations.
PROJECTS UNDER IMPLEMENTATION 1. Steel Plant at Angul, Odisha
The Company is setting up 6 MTPA steel plant at Angul in the state of
Odisha. The following facilities are, at present, under installation:
1.1) Coal Washery(2x 600 TPH)
1.2) Sponge Iron Plant based on Coal Gasification (1.8 MTPA)
1.3) Steel Melting Shop (1.64 MTPA)
1.4) Plate Mill (1.5 MTPA)
1.5) Captive Power Plant (6x135 MW)
Out of the above facilities under implementation, the construction of
Plate Mill has been completed and is expected to be commissioned in
financial year 2012-13. Apart from this, work on raw material handling
plant, beam welding plant, cross country pipeline, raw water reservoir,
in-take pump house and a housing colony is at an advanced stage of
implementation.
The following facilities are also being set up at Angul:
1.1) Coke Oven Plant (2.0 MTPA)
1.2) Sinter Plant (4.0 MTPA)
1.3) Pellet Plant (4.0 MTPA)
1.4) Blast Furnace (3.2 MTPA)
1.5) Sponge Iron Plant (2.0 MTPA)
1.6) Steel Melting Shop (4.36 MTPA)
1.7) Hot Strip Mill (4.5 MTPA)
Department of Water Resources, Government of Odisha has given
permission for drawing of 95.16 cusecs of water from river Bramhani for
the plant. Ministry of Environment & Forests, Government of India has
issued environmental clearance and Odisha State Pollution Control Board
has issued consent to establish for setting up of said steel plant.
Technology suppliers for Sinter Plant (4.0 MTPA), Blast Furnace (3.2
MTPA) and Sponge Iron Plant (2.0 MTPA) have been finalised and
discussions are under progress for finalising technology suppliers for
remaining facilities.
2) Steel Plant at Patratu, Jharkhand
The Company envisages setting up of 6 MTPA integrated steel plant at
Patratu in the state of Jharkhand and in its first phase, is
implementing 3 MTPA steel plant.
Agreement has been signed with Government of Jharkhand for supply of
66.54 mem of water from Damodar Basin for
the plant and an agreement with Jharkhand State Electricity Board is
under process of renewal for supply of 20 cusecs of water. Ministry of
Environment & Forests, Government of India has issued environmental
clearance and State Pollution Control Board, Jharkhand has issued
consent to establish for setting up of said steel plant. The Company
has already acquired 1,039 acres of land and process is on for
acquiring balance 2,205 acres of land.
3) Steel plant, Raigarh, Chhattisgarh
The existing steelmaking capacity at Raigarh Works is 3 MTPA.
Considering the increasing demand for steel in coming years, the
Company plans to enhance steelmaking capacity at Raigarh Works to 11
MTPA and is in the process of seeking various approvals. The Company
has entered into memoranda of understanding with the State Government
of Chhattisgarh in terms of which the State Government of Chhattisgarh
will extend necessary assistance to the Company in expeditiously
obtaining various approvals, coal and iron ore linkages, environmental
clearances, acquisition of land etc. for implementing the said
expansion plan. Ministry of Environment and Forests, Government of
India has issued Terms of Reference (TOR) for the proposed expansion in
terms of which the Company has submitted draft Environment Impact
Assessment and Environment Management Plan to the Chhattisgarh
Environment Conservation Board, Raipur, Chhattisgarh.
In order to further improve and strengthen the present operations, the
following facilities are being added:-
3.1) Additional mill for pulverised coal injection is being set up
which will help in increasing the coal injection in Blast Furnace
thereby reducing the consumption of coal as well as improving the
productivity.
3.2) Third Turbo-blower is being installed which will act as standby to
the existing two turbo blowers and ensure continuity of hot blast air
to Blast Furnace in case of shut down of any turbo.
3.3) Slab Caster upgradation is being done to increase the width of the
slabs. This will help in rolling the increased width plates from the
Plate Mill.
3.4) Additional 6 Silos are being set up to blend different kinds of
coal. Low cost coal is blended with high grade coking coal to reduce
the cost of blended coal and thus reduces the cost of coke. This will
reduce the cost of conversion of hot metal in Blast Furnace.
3.5) Second Ladle Refining Furnace is being installed in Steel Melting
Shop - III which will increase steel- making capacity by increasing the
capacity of secondary steel making.
4. Pellet Plant at Barbil, Odisha
The Company is setting up one more 4.5 MTPA Iron Ore Pellet Plant with
wet grinding process at Barbil for which basic engineering and
proprietary equipment have been ordered. Water approval, environmental
clearance and consent to establish for setting up 10 MTPA Pellet plant
at Barbil have already been received. Detailed engineering agency has
been finalised and critical packages ordering is in progress. The
pelletisation will be a value added process of iron ore fines and
better utilisation of powdery ore available in the mines.
5. Shadeed Sponge Iron Plant
Asa part of expansion, Shadeed Iron & Steel Co. LLC, Oman, a subsidiary
company, is setting up a 2 MTPA Steel Melting Shop. M/sDanieli, Italy
has been finalised as the technology and core equipment supplier and
M/s Idom, Spain has been finalised as the Engineering Consultant.
SUBSIDIARY COMPANIES AND THEIR
BUSINESS
Jindal Power Limited (JPL), operating 1,000 MW (4 X 250 MW) power plant
in Raigarh (Chhattisgarh) has closed financial year 2011-12 with a
total sales of Rs. 3,040.35 crore and earned a profit after tax of Rs.
1,764.99 crore. JPL is expanding its power generation capacity by
setting up 2,400 MW (4 X 600 MW)
power plant adjacent to its existing works. JPL envisages setting up
hydro projects in the State of Arunachal Pradesh in Joint Venture with
Hydro Power Development Corporation of Arunachal Pradesh Limited and
thermal power projects in the states of Jharkhand and Odisha. Shadeed
Iron & Steel LLC, Oman, operating 1.5 MTPA Hot Briquette Iron plant
achieved sales of Rs. 2,794.30 crore in the financial year 2011-12 and
earned a profit after tax of Rs. 244.17 crore. Jindal Mining SA (Pty)
Limited, South Africa, operating coal mines achieved a sales of Rs.
451.02 crore in the financial year 2011-12 and earned a profit after
tax of Rs. 38.18 crore.
Africa continent and Australia are rich in mineral resources and your
Company, through its subsidiary companies, is expanding its business
activities by acquiring, exploring and operating iron, coal, limestone
and base metals. The operations in Kiepersol Colliery in South Africa
stabilised over the last year enabling a ramp up of production in the
coming years. The Company also continues to pursue more opportunities
in mining of coal, iron ore and manganese in this country. In
Mozambique, the coking coal project is in the final stages of
development. The sale is likely to start in financial year 2012-13.
TRANSFER TO INVESTOR EDUCATION AND PROTECTION FUND
Pursuant to Section 205C of the Companies Act, 1956, the Company has
transferred unpaid / unclaimed final dividend for financial year
2003-04 and interim dividend for financial year 2004-05 amounting to Rs.
20,03,753/- (Rupees twenty lacs three thousand seven hundred and fifty
three only) and Rs. 16,77,124/- (Rupees sixteen lacs seventy seven
thousand one hundred twenty four only) respectively to Investor
Education and
Protection Fund of Government of India. The details including last date
for claiming of unclaimed / unpaid dividend amount is given at the end
of the Notice of the Annual General Meeting.
EMPLOYEES STOCK OPTION
Details of allotment of shares made pursuant to Employees Stock Option
Scheme-2005 to the employees of the Company and its subsidiary, Jindal
Power Limited during the period under report is given below:
S.No. Series No. of Equity Date of
Shares Allotted Allotment
1 Series III (Part III) 3,24,223 12th
December
2011
As required by clause 12 of SEBI (Employee Stock Option Scheme and
Employee Stock Purchase Scheme) Guidelines, 1999 information with
respect to active Stock Options as on 31st March, 2012 is given in a
separate statement as Annexure-I forming part of this Report.
LISTING
The equity shares continue to be listed on BSE Limited (BSE) and the
National Stock Exchange of India Limited (NSE). Both these stock
exchanges have nation-wide terminals and therefore, shareholders /
Investors are not facing any difficulty in trading in the shares of the
Company from any part of the country. The Company has paid annual
listing fee for the financial year 2012- 13 to BSE & NSE and annual
custody fee to National Securities Depository Limited and Central
Depository Services (India) Limited. Shares issued against stock
options have been listed and trading permission has been granted by
these stock exchanges.
FIXED DEPOSITS
The Company has not received any fresh deposits during the year under
report. The aggregate amount outstanding in respect of fixed deposits
as on 31st March, 2012 was Rs. 37.22 crore against 6,938 fixed deposit
holders. Amount of deposits that have matured but were unclaimed as on
31st March, 2012 was Rs. 1.11 crore representing 384 deposit holders.
Since then 39 deposits totaling Rs. 16.28 lacs have been paid.
DIRECTORS
IDBI Bank Limited has withdrawn nomination of Shri S. Ananthakrishnan
from the Directorship from the close of business hours on 27th
February, 2012 and nominated Shri Inderpal Singh Kalra as Director
w.e.f. 28th February, 2012. Smt. Savitri Jindal and Shri Naushad
Akhter Ansari have resigned from the Directorship of the Company w.e.f.
26th April, 2012 and 01st May, 2012 respectively. Shri Haigreve
Khaitan, Shri Hardip Singh Wirk, Shri Rahul Mehra and Shri Sushil
Maroo, Directors of the Company will retire by rotation at the
forthcoming Annual General Meeting and being eligible have offered
themselves for re-appointment as Directors of the Company, liable to
retire by rotation, in the said meeting.
PARTICULARS OF CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND
FOREIGN EXCHANGE EARNINGS AND
OUTGO
Information pursuant to Section 217(1) (e) of the Companies Act, 1956
read with Rule 2 of the Companies (Disclosure of Particulars in the
Report of Board of Directors) Rules, 1988 regarding conservation of
energy, technology absorption and foreign exchange earnings and outgo
is given in Annexure II forming part of this report.
PARTICULARS OF EMPLOYEES
In terms of the provisions of Section 217(2A) of the Companies Act,
1956, read with the Companies (Particulars of Employees) Rules, 1975 as
amended from time to time, the particulars of employees are set out in
Annexure-lll to this Report. However, as per provisions of Section
219(l)(b)(iv) of the said Act read with Clause 32 of the Listing
Agreement, the Annual Report excluding the aforesaid information is
being sent to all the members of the Company and others entitled
thereto. Any member interested in obtaining such particulars may write
to the Company.
CORPORATE GOVERNANCE
Your Company has implemented the conditions of Corporate Governance as
contained in Clause 49 of listing agreement. Separate reports on
Corporate Governance and Management Discussion and Analysis along with
necessary certificates are given elsewhere in this Annual Report as
Annexure IV & V.
BUSINESS RESPONSIBILITY REPORT
Ministry of Corporate Affairs (MCA), Government of India has, in July
2011, issued National Voluntary Guidelines on Social, Environmental and
Economic Responsibilities of Business (Guidelines). The Guidelines list
out nine principles and core elements on ethics, transparency and
accountability, sustainability, employee well being, responsiveness
towards stakeholders, promotion of human rights, environment
protection, influencing public policy, inclusive growth and equitable
development, value to customers and consumers.
The Companies in India are adviced to follow these Guidelines for
reporting their initiatives and activities relating to corporate social
responsibilities (CSR). The Company's vision, mission and core values
enshrine these principles which are integral to the business of the
Company. The Company engages in elaborate CSR initiatives, conducts
business with transparency and accountability, looks after well being
and protection of the employees with a human face, is responsive to the
needs of all its stakeholders and takes care of quality of the products
manufactured by it, gives priority to preservation and protection of
environment and prevention of pollution and believes that business is
also a medium to contribute to the social development. Initiatives
undertaken during the year under report in respect of corporate social
responsibility, environment protection, industrial relations and human
resource management etc. are mentioned in detail in the Management
Discussion and Analysis Report which forms a part of this report as
Annexure V.
AUDITORS
M/s S.S.Kothari Mehta & Co. (Firm Registration Number - 0000756N),
Auditors of the Company hold office upto the conclusion of the ensuing
Annual General Meeting. The Company has received communication from
them to the effect that their appointment, if made, would be within the
limits prescribed under Section 224(1B) of the Companies Act, 1956.
They are proposed to be appointed as Auditors of the Company for the
financial year 2012-13.
DIRECTORS' RESPONSIBILITY STATEMENT
Pursuant to the requirement under sub Section 2AA of Section 217 of the
Companies Act, 1956, with respect to the Directors Responsibility
Statement, it is hereby confirmed:-
i) that in preparation of the annual accounts for the financial year
ended on 31st March, 2012, the applicable accounting standards had been
followed along with proper explanations relating to material
departures.
ii) that the Directors had selected such accounting policies and
applied them consistently and made judgments and estimates that are
reasonable and prudent so as to give a true and fair view of the state
of affairs of the Company at the end of the financial year and of the
profit of the Company for the year under report.
iii) that the Directors had taken proper and sufficient care for the
maintenance of adequate accounting records in accordance with the
provisions of the Companies Act, 1956 for safeguarding the assets of
the Company and by preventing and detecting fraud and other
irregularities.
iv) that the Directors had prepared the accounts for the financial year
ended on 31st March, 2012 on a 'going concern basis'.
APPRECIATION
Your Directors wish to place on record their gratitude for the valuable
guidance and support rendered by the Government of India, various State
Government departments, Financial Institutions, Banks and various
stakeholders, such as, shareholders, customers and suppliers, among
others. The Directors also commend the continuing commitment and
dedication of the employees at all levels, which has been critical for
the Company's success. The Directors look forward to their continued
support in future.
For and on behalf of the Board
Place: New Delhi NaveenJindal
Dated: 27th April, 2012 Chairman and Managing Director
Mar 31, 2011
To
The members,
The Directors are pleased to present the 32nd Annual Report together
with the Statement of Accounts for the year ended 31st March, 2011.
FINANCIAL RESULTS (Rs. in Crores)
Particulars Standalone Consolidated
Financial Financial Financial Financial
Year ended Year ended Year
ended Year ended
31.03.2011 31.03.2010 31.03.2011 31.03.2010
Sales & other income 9,717.34 7,484.90 13,193.60 11,151.82
Profit before interest
and depreciation 3,726.14 2,612.13 6,398.59 5,907.99
Profit before tax 2,753.36 1,907.50 4,988.02 4,553.45
Profit after tax 2,064.12 1,479.68 3,804.01 3,634.56
Appropriations:
Interim dividend - - 4.29 3.38
Final dividend 140.19 116.52 140.19 116.52
Corporate tax on dividend 3.75 4.28 23.44 19.96
General reserve 210.00 150.00 211.65 150.00
FURTHER ISSUE OF CAPITAL
The Company has allotted 30,23,507 equity shares of Re.1/- each on
various dates against options granted under the Company's Employee
Stock Option Scheme- 2005 during the period under report.
DIVIDEND
Your Directors recommend a dividend of 150% i.e. Rs. 1.50 per equity
share of Re. 1/- each. Stock Options under Series III (Part III) will
vest in the employees on 27th April, 2011 and shares will be allotted
against these Options in due course. These shares will rank pari-passu
with the existing shares in all respects. Accordingly, provision for
payment of dividend for the financial year 2010-11 has also been made in
respect of 7,40,625 equity shares being the maximum number of shares
that may be allotted on exercise of these Options.
OPERATIONAL REVIEW
The Company has, on a consolidated basis, achieved an aggregate income
of Rs. 13,193.60 crores, compared to previous year's Rs. 11,151.82
crores. Profit before tax has increased to Rs. 4,988.02 crores in
2010-11 from Rs. 4,553.45 crores in 2009-10. Profit after tax has also
grown to Rs. 3,804.01 crores in the year under review, from Rs.
3,634.56 crores in the previous year. The Reserves and Surplus have
touched Rs. 14,015.08 crores.
Sponge Iron
The Company produced 13,19,840 MT of Sponge Iron in the year under
report as against previous year's production of 13,09,408 MT and
achieved a capacity utilisation of 96.3%.
Steel
The production of steel products during the year under report, compared
to previous year is given below:
Sl No. Product Production in MTs
(2010-11) (2009-10)
1 Finished steel products 15,85,327 12,14,583
2 Semi steel products 22,72,692 19,64,032
Ferro Chrome
The Company produced 17,149 MT of HC Ferro Chrome/ silico manganese
during the year as against 540 MT in the previous year.
Power
The Company generated 2,942 million Kwh of power during the year under
report as against last year's 2,976 million Kwh of power.
Raipur Unit
Raipur Unit produced 1,579 MT of casting and has done machining of
8,613 MT as against 1,665 MT and 8,885 MT respectively of previous
year.
Mining
The production of calibrated iron ore at captive mine at Tensa in
Orissa was 29.09 lacs MT as against previous year's production of 12.34
lacs MT. The Company has exported 8.42 lacs MT of iron ore fines as
against 6.09 lacs MT in the previous year. Coal production at captive
mine was 59.99 lacs MT, as against previous year's production of 59.98
lacs MT.
PROJECTS COMPLETED
Following projects were completed during the year under report:
1. Steel Melting Shop: With the modifcation in mini blast furnace and
by commissioning of steel melting shop (SMS - III) in May 2010, the
production capacity of Hot Metal / Pig Iron has increased from 1.5 MTPA
to 1.67 MTPA and of Mild Steel from 2.4 MTPA to 3.0 MTPA.
2. Captive Power Plant: Out of the four captive power generating units
of 135 MW each to be set up in two phases at Dongamahua, Raigarh, two
units of 135 MW each under Phase à I were synchronised in May and
September 2010 respectively and are generating power. Both the units
have stabilised their operations and power generated is utilised for
Raigarh works.
810 MW (6x135 MW) captive power plant is a part of steel plant proposed
to be set up at Angul, Orissa. The first unit of 135 MW has been
commissioned in March 2011.
The Company's total power generation capacity has increased to 782 MW
which includes 24 MW of windmill power plant at Satara, Maharashtra.
3. Cement Plant: A 0.5 MTPA capacity slag grinding unit at Raigarh,
Chhattisgarh has been completed and is operating since May 2010. This
plant is utilising the slag produced by blast furnace I and II and
clinker, purchased from outside, is mixed with slag to produce cement.
A part of the production is used in-house for various civil works and
balance is sold in the market.
4. Medium and Light Section Mill: A 0.6 MTPA medium and light section
mill at Raigarh, Chhattisgarh has been completed and commenced
production from January 2011. This mill has the capacity to produce 400
mm beams, 300 mm channels and 200 mm channels which are in great
demand. This mill will complement the product range of rail and
universal beam mill (RUBM) which produces 100 mm beams and 400 mm
columns and rails. The capacity to produce a range of products has
provided the Company a strong market edge.
5. 6 Strand Billet caster: This unit is a part of SMS- III and started
commercial production from March 2011. The billets are used as raw
material for the production of medium sections, beams, channels, wire
rods used by construction sector and angels used for construction of
transmission towers.
6. Wire Rod Mill and Bar Mill: A 0.6 MTPA capacity wire rod mill and
1.0 MTPA capacity bar mill, at Patratu, Jharkhand has commenced
production on 29th March, 2010 and 30th March, 2011 respectively. Wire
rod mill produces wire rods of 5.2 mm to 22 mm and rebars of 6, 8 10 &
12 mm, which are used in the manufacture of springs, high tension
fasteners, electrodes, nails, concrete wires. Bar mill produces rebars
of 8 mm to 40 mm size, angels of 50x50x5 mm to 90x90x9 mm and rounds of
20-63 mm diameter and RCS of 40-63 mm diameter. These products are used
in civil construction, fabrication and structural work and for the
production of fasteners and bolts, among others.
7. Shadeed Sponge Iron Plant: The Company through its 100% subsidiary
Jindal Steel & Power (Mauritius) Limited, Mauritius (JSPLM), has
acquired Shadeed Iron & Steel Co. LLC (SISCO), a Company incorporated
under the laws of the Sultanate of Oman, in June 2010. SISCO has a 1.5
MTPA gas-based Hot Briquetted Iron (HBI) plant at the industrial port
area of Sohar, Oman. The plant has been commissioned in record time and
commercial operations started in December 2010, three months ahead of
its schedule. The plant has a 600 meter long quay with 19 meter draught
capable to handle cape size vessels. The Company proposes to set up a
1X200 T/hr EAF and a billet caster and the orders for the same will be
placed in the current financial year.
8. Producer Gas Plant: 2x48500 Nm3/hr producer gas plant has been set
up at Barbil, Orissa and is operating since March 2010. The gas
produced by this plant is a substitute for furnace oil, which is used
in the pellet plant.
PROJECTS UNDER IMPLEMENTATION
1. Captive Power Plant in Raigarh, Chhattisgarh: Under Phase à II, 270
MW (2 x 135 MW) captive power plant, is being set up at Dongamahua,
Raigarh. Environment clearance and consent to establish have been
obtained. Complete BOP packages like CHP, AHP and Water Treatment
Plant, Switchyard, C&I Packages etc. have been awarded to different
vendors. Target date for the synchronisation of the Unit I of Phase II
is September 2011 and for Unit II is December 2011.
2. Steel Plant in Angul, Orissa: The Company is at an advanced stage
of implementation of this project. All major orders for engineering,
equipment supply and construction works have been placed. Out of 4,331
acres of land required for the project, 4,067 acres of land have
already been acquired. The following facilities are being set up viz.,
plate mill (1.5 MTPA), coal Gasification plant (225,000Nm3/hr), sponge
iron plant (1.8 MTPA), steel melting shop (1.64 MTPA), slab caster
(1.62 MTPA), oxygen plant (2x1200 TPD), lime and dollime plant
(2x500 TPD), coal washery (2x600 TPH) and captive power plant (6x135
MW). Target date of commissioning of the steel plant is March 2012.
3. Steel plant in Patratu, Jharkhand: The Company is setting up an
integrated steel plant in Patratu in the state of Jharkhand with the
following key facilities viz. Blast Furnace (10,000 TPD), Sinter Plant
(5.04 MTPA), Coke Ovens (1.70 MTPA), billet caster (2 X 8 strands),
Oxygen Plant (2 X 1300 TPD), Lime & Dollime Plant (3 X 600 TPD), BOF
Shop (2 X 180/200 Tons). Orders for major technological packages have
been fnalised/are in the advanced stages of finalisation. The steel
plant is expected to be commissioned in second half of 2013.
4. Machinery Division, Raipur, Chhattisgarh: The Company is expanding
production capacity of this division from 5,100 to 10,000 metric tons
per annum. During the year under report, two sheds were completed and
the CNC machines have been commissioned enhancing the production
capacity to 9,000 metric tons per annum. During the current financial
year, two more sheds will be constructed in which cranes will be
installed thereby increasing the production capacity to 10,000 metric
tons per annum. This division is capable of manufacturing equipment for
steel melting shop, blast furnace, sponge iron plant, sinter plant etc.
The production capacity of foundry division has been increased to 4,600
metric tons. Work for setting up of Pressure Vessel Division with
production capacity of 2,500 metric tons per annum is going ahead and
sheds have been completed.
5. El-Mutun Iron Ore Mine, Bolivia: Jindal Steel Bolivia S.A (JSB), a
subsidiary of the Company, has been allotted land for setting up of an
integrated 1.7 MTPA steel plant, a 6 MTPA sponge iron plant, a 10 MTPA
iron ore pellet plant and a 450 MW power plant. EIA clearance for
mining and beneficiation plant has been obtained and the mining activity
is progressing smoothly. Engineering consultant for the project has
been appointed. All major packages for the project are in the process
of finalisation. The dispatch of the ore being produced is expected to
start by June 2011.
SUBSIDIARY COMPANIES AND THEIR BUSINESS
Jindal Power Limited (JPL) is operating 1,000 MW (4 X 250 MW) power
plant in Raigarh (Chhattisgarh). JPL has closed financial year 2010-11
with a total income of Rs. 3,564.35 crores and earned a Profit after tax
of Rs. 2,001.60 crores. The Company is expanding its power generation
capacity by setting up 2,400 MW (4 X 600 MW) power plant adjacent to
the existing site at Tamnar, Raigarh. JPL envisages setting up of 1,320
MW thermal power plant in Dumka, Jharkhand and 1,320 MW thermal power
plant in Godda, Jharkhand and Hydro Electric Power Plants of 6,100 MW
power generation capacity in the state of Arunachal Pradesh in Joint
Venture with Hydro Power Development Corporation of Arunachal Pradesh
Limited.
The Company has deepened and expanded its roots in the African
continent and has its presence in Mozambique, South Africa, Congo,
Madagascar, Zimbabwe, Tanzania and Zambia through subsidiary companies
for undertaking the mining activities related to coal, limestone, base
metals and precious metals.
TRANSFER TO INVESTOR EDUCATION AND PROTECTION FUND
Pursuant to Section 205C of the Companies Act, 1956, the Company has
transferred unclaimed matured fixed deposit amounting to Rs. 1,07,296/-
(Rupees one lac seven thousand two hundred ninety six only) and unpaid
/ unclaimed fnal dividend for financial year 2002-03 and interim
dividend for financial year 2003-04 amounting to Rs. 22,82,910/- (Rupees
twenty two lacs eighty two thousand nine hundred ten only) and Rs.
14,00,114/- (Rupees fourteen lacs one hundred fourteen only)
respectively to Investor Education and Protection Fund of Government of
India. The details including last date of claiming unclaimed / unpaid
dividend amount is given at the end of the Notice of the Annual General
Meeting.
As required by Clause 12 of SEBI (Employee Stock Option Scheme and
Employee Stock Purchase Scheme) Guidelines, 1999 information with
respect to active Stock Options as on 31st March, 2011 is given in a
separate statement as Annexure-I forming part of this Report.
LISTING
The equity shares continue to be listed on The Bombay Stock Exchange
Limited (BSE) and the National Stock Exchange of India Limited (NSE).
Both these stock exchanges have nation-wide terminals and therefore,
shareholders / Investors are not facing any difficulty in trading in the
shares of the Company from any part of the Country. The Company has
paid annual listing fee for the financial year 2011-12 to BSE & NSE and
annual custody fee to National Securities Depository Limited and
Central Depository Services (India) Limited. Shares issued against
stock options have been listed and trading permission has been granted
by these stock exchanges.
FIXED DEPOSITS
The Company has received Rs. 11.01 crores as fresh deposits from 2,099
applicants during the year under report. The aggregate amount
outstanding in respect of fixed deposits as on 31st March, 2011 was Rs.
59.67 crores against 11,522 fixed deposit holders. Amount of deposits
that have matured but were unclaimed as on 31st March, 2011 was Rs.1.28
crores representing 441 deposit holders. Since then 71 deposits
totalling Rs. 23.02 lacs have been paid.
DIRECTORS
Shri Arun Kumar Mukherji, resigned from the Directorship and Wholetime
Directorship of the Company from close of business hours of 23rd
November, 2010. Shri Naushad Akhter Ansari was appointed as an
Additional Director and Wholetime Director of the Company w.e.f 1st
December, 2010. Smt. Savitri Jindal, Shri Ratan Jindal, Shri Arun Kumar
Purwar and Shri Anand Goel, Directors of the Company will retire by
rotation at the forthcoming Annual General Meeting and being eligible
have offered themselves for re-appointment.
PARTICULARS OF CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND
FOREIGN EXCHANGE EARNINGS AND OUTGO
Information pursuant to Section 217(1) (e) of the Companies Act, 1956
read with Rule 2 of the Companies (Disclosure of Particulars in the
Report of Board of Directors) Rules, 1988 regarding conservation of
energy, technology absorption and foreign exchange earnings and outgo
is given in Annexure II forming part of this report.
PARTICULARS OF EMPLOYEES
In terms of the provisions of Section 217(2A) of the Companies Act,
1956 read with the Companies (Particulars of Employees) Rules, 1975 as
amended from time to time, the particulars of employees are set out in
Annexure-III to this Report. However, as per provisions of Section
219(1)(b)(iv) of the said Act read with Clause 32 of the Listing
Agreement, the Annual Report excluding the aforesaid information is
being sent to all the members of the Company and others entitled
thereto. Any member interested in obtaining such particulars may write
to the Company.
CORPORATE GOVERNANCE
Your Company has implemented the conditions of Corporate Governance as
contained in Clause 49 of listing agreement. Separate reports on
Corporate Governance and Management Discussion and Analysis along with
necessary certificates are given elsewhere in this Annual Report as
Annexure IV & V.
AUDITORS
M/s S.S.Kothari Mehta & Co. (Firm Registration Number - 0000756N),
Auditors of the Company hold office upto the conclusion of the ensuing
Annual General Meeting. The Company has received communication from
them to the effect that their appointment, if made, would be within the
limits prescribed under Section 224(1B) of the Companies Act, 1956.
They are proposed to be appointed as Auditors of the Company for the
financial year 2011-12.
DIRECTORS' RESPONSIBILITY STATEMENT
Pursuant to the requirement under Sub Section 2AA of Section 217 of the
Companies Act, 1956, with respect to the Directors Responsibility
Statement, it is hereby confirmed:- i) that in preparation of the annual
accounts for the financial year ended on 31st March, 2011, the
applicable accounting standards had been followed along with proper
explanations relating to material departures.
ii) that the Directors had selected such accounting policies and
applied them consistently and made judgements and estimates that are
reasonable and prudent so as to give a true and fair view of the state
of affairs of the Company at the end of the financial year and of the
Profit of the Company for the year under report.
iii) that the Directors had taken proper and sufficient care for the
maintenance of adequate accounting records in accordance with the
provisions of the Companies Act, 1956 for safeguarding the assets of
the Company and by preventing and detecting fraud and other
irregularities.
iv) that the Directors had prepared the accounts for the financial year
ended on 31st March, 2011 on a 'going concern basis'.
APPRECIATION
Your Directors wish to place on record their gratitude for the valuable
guidance and support rendered by the Government of India, various State
Government departments, Financial Institutions, Banks and various
stakeholders, such as, shareholders, customers and suppliers, among
others. The Directors also commend the continuing commitment and
dedication of the employees at all levels, which has been critical for
the Company's success. The Directors look forward to their continued
support in future.
For and on behalf of the Board
Place: New Delhi Savitri Jindal
Date: 21st April, 2011 Chairperson
Mar 31, 2010
The Directors are pleased to present the 31st Annual Report together
with the Statement of Accounts for the year ended 31st March, 2010.
FINANCIAL RESULTS
(Rs. in Crores)
Standalone Consolidated
Financial Financial Financial Financial
Particulars Year ended Year ended Year ended Year ended
31.03.2010 31.03.2009 31.03.2010 31.03.2009
Sales & other income 7,484.90 7,799.43 11,151.82 10,913.37
Profit before interest 2,612.13 2,603.82 5,907.99 5,231.81
and depreciation
Profit before tax 1,907.50 2,001.88 4,553.45 3,811.10
Profit after tax 1,479.68 1,536.48 3,634.56 3,007.15
Appropriations:
Interim dividend - - 3.38 -
Final dividend 116.52 85.33 116.52 85.28
Corporate tax on 4.28 - 19.96 14.75
dividend
General reserve 150.00 155.00 150.00 155.00
FURTHER ISSUE OF CAPITAL
Company has allotted 77,56,51,530 Bonus shares of Re.1/- each on 19th
September, 2009 in the ratio of 5 bonus shares for each existing equity
share of Re. 1/- 11,81,875 equity shares of Re. 1/- each were also
allotted on various dates against options granted under the Companys
Employee Stock Option Scheme - 2005.
DIVIDEND
Your Directors recommend a dividend of 125% i.e. Rs. 1.25 per equity
share of Re. 1/- each. Stock Options under Series I (Part III) and
Series III (Part II) have vested in the employees and shares will be
allotted against these Options in due course. These shares will rank
pari - passu with the existing shares in all respects. Accordingly,
provision for payment of dividend for 2009-10 has also been made in
respect of 32,29,029 equity shares being the number of shares that may
be allotted on exercise of these Options.
OPERATIONAL REVIEW
The Company, on a consolidated basis, has achieved an aggregate income
of Rs. 11,151.82 Crores as compared to previous years Rs. 10,913.37
Crores. Profit before tax has increased to Rs. 4,553.45 Crores from
previous years Rs. 3,811.10 Crores. Profit after tax has increased to
Rs. 3,634.56 Crores from previous years Rs. 3,007.15 Crores. Reserves
and Surplus have increased to Rs.10,301.32 Crores.
Sponge Iron
The Company has produced 13,09,408 MT of Sponge Iron in the year under
report as against previous years production of 12,48,511 MT and
achieved capacity utilisation of 95.6%.
Steel
The production of steel products during the year under report as
compared to previous year is given below:
Sl. No. Product Production in MTs
(2009-10) (2008-09)
1 Finished steel products 12,14,583 9,98,205
2 Semi steel products 19,64,032 15,78,790
Ferro Chrome
The Company has produced 540 MT of HC Ferro Chrome during the year as
against 16,143 MT in the previous year.
Power
The Company generated 2,976 million Kwh during the year as against
2,831 million Kwh of the previous year.
Raipur Unit
Raipur Unit produced 973 MT of MS ingots, 1,665 MT of casting and has
done machining of 8,885 MT as against previous years figures of 937
MT, 1,964 MT and 4,210 MT respectively.
Mining
The production of calibrated iron ore at captive mine at Tensa in
Odisha was 12.34 lac MT as against previous years production of 10.41
lacs MT. The Company has exported 6.09 lacs MT of iron ore fines as
against previous years 9.08 lacs MT. The production of coal at captive
mine was 59.98 lac MT registering a marginal increase over previous
years production.
PROJECTS UNDER IMPLEMENTATION
a) Projects at Raigarh, Chhattisgarh
1. 4 x 135 MW Captive Power Plant
The Company is setting up 540 MW (4 x 135 MW) captive power plant at
its coal mine at Tamnar, Raigarh in two phases which will cater to the
increasing power requirement of the steel complex at Raigarh.
Environment clearance has been obtained for 2x150 MW (1st phase) Power
Plant and Company has applied for environment clearance for 2x150 MW
(2nd phase) Power Plant. The estimated project cost of Phase I (2x135
MW) is Rs. 1,179 Crores and Phase II (2x135 MW) is Rs.1,080 Crores. The
entire land required for the project has been acquired. The order for
Boiler Turbine Generator (BTG) Package has been placed on M/S Shanghai
Electric Company, China. Complete BOP packages like CHP, AHP and Water
Treatment Plant System, Electrical System like HT/LT Switchgears, Bus
Ducts, Transformers, Switchyard, C&I Packages etc. have also been
awarded. The first unit (135 MW) has been synchonised on May 03, 2010
and is expected to be commissioned in June 2010. The second unit (135
MW) of 1st phase will be commissioned by the end of 2010.
2. 2.0 MTPA Cement Plant
The Company is setting up 2.0 MTPA cement plant at Raigarh in two
phases. Slag Grinding Unit of 0.5 MTPA has been set up in first phase
at a cost of Rs.125 Crores and will utilise the slag generated by steel
plant which will help in solid waste management. The Company has
acquired most of the required land and balance is under acquisition.
Prospecting license of Banipather Mines, Kharsia, Raigarh has been
obtained for Gudeli C & Gudeli A block. Letter of intent for mining
lease for Godadih Block of Chilhati mines has been received and mining
plan of the same is under progress.
3. 0.6 MTPA Medium and Light Section Mill
A Medium and Light Section Mill is being set up at Raigarh for rolling
100 to 300 MM Beams & Channels with a provision to extend up to 400 MM
in future at an estimated cost of Rs. 500 Crores. This Mill along with
Rail and Universal Beam Mill will be able to roll 100-900 MM wide
Structurals at Raigarh works. It would also have the capability to roll
100 to 200 MM Angles, Rails (small) and Flats of various sizes. The
critical equipment and technology has been supplied by M/s Danieli
Morgard Shammer of Italy. Korus Engineering Solutions, New Delhi has
been working as the Engineering Consultant for this project. M/s Gannon
Dunkerley & Co. Limited is the main civil & structural contractor. The
project is expected to be commissioned in 2010.
b) Steel Plant in Angul, Odisha
The Company has taken steps for implementation of this project. Orders
have been placed for equipment and civil structure. Out of 4,331 acres
of land required for the project, 4,000 acres of land has already been
acquired. The integrated steel plant is expected to be commissioned by
2012.
c) Steel plant in Patratu, Jharkhand
The Company is setting up 6.0 MTPA integrated steel plant at Patratu in
the state of Jharkhand. The facility envisaged, in first phase, is 2
Rebar Mills of 1.0 MTPA each, Wire Rod Mill of 0.6 MTPA, Coke Oven of
1.5 MTPA, Sinter Plant of 4.27 MTPA and Blast furnace of 3.0 MTPA.
Major orders for various equipments have been finalised. Wire Road Mill
of 0.6 MTPA has been commissioned on 29th March 2010. The integrated
steel plant is expected to be commissioned by 2012.
d) Projects at Barbil, Odisha
As a part of mineral conservation, the Company is setting up iron ore
washing plant (Phase - II) with 9.6 MTPA capacity with an investment of
Rs. 289 Crores. This plant is expected to be commissioned by the end of
2010. Management is considering enhancing the production capacity of
existing Pellet plant from 4.5 MTPA to 10.5 MTPA.
e) Raipur Machinery Division, Chhattisgarh
Raipur Machinery Division has successfully commissioned following
facilities during the year under report, viz, two new 6 ton induction
furnace, three CNC lathe machines, two new horizontal machining
centers, one new CNC horizontal boring machine, two new CNC plano
miller. Three horizontal boring machines and two HMT conventional
boring machines will be installed by September, 2010. After completion
of expnasion, the production capacity of the workshop will increase to
8,200 MTPA and foundary to 4,200 MTPA.
Raipur Machinery Division is also setting up facilities for
manufacturing pressure vessels. The estimated cost of this project is
Rs. 31.70 Crores. Required land has been acquired and environment
clearance has also been obtained. The Unit will be commissioned in
2011.
f) Wind Mill Power, Maharashtra
The Company had decided to establish 16 wind mills each having power
generation capacity of 1.5 MW, in technical collaboration with Vensys
of Germany at a cost of Rs. 163 Crores in village Bhud and Amberi in
District Satara in the state of Maharashtra. Ten wind mills have
started generating power from March 2009. Remaining six mills have
become operational in the year under report. Power generated by these
wind mills is supplied to Maharashtra State Electricity Transmission
Company Limited.
g) El-Mutun Iron Ore Mine, Bolivia
A Joint Venture Contract has been executed between Jindal Steel Bolivia
S. A.(JSB), a subsidiary of the Company and the entities of Government
of Republic of Bolivia subsequent to the awarding of exploitation
rights by the Government of Republic of Bolivia over an area of El
Mutun Mine. This contract has also been approved by the Bolivian
parliament. The Company proposes to invest US$ 2.10 billion in next 8
years for development of the mine in the granted concession and setting
up mining facilities, steel making facilities and the requisite
infrastructure through JSB.
SUBSIDIARY COMPANIES AND THEIR BUSINESS
Jindal Power Limited (JPL) is operating 1000 MW (4 X 250 MW) power
plant in Raigarh (Chhattisgarh). JPL has closed financial year 2009-10
with a total income of Rs. 4,054.93 Crores (Previous year Rs. 3,314.27
Crores) and earned profit after tax of 2,318.76 Crores (Previous year
Rs. 1,581.93 Crores). JPL is expanding its power generation capacity by
setting up 2,400 MW (4 X 600 MW) power plant at the existing site at
Tamnar, Raigarh. JPL also envisages setting up 4,000 MW Etalin hydro
electric power plant, 500 MW Attunli hydro electric power plant and
1600 MW middle Subhansiri hydro electric power plant in the state of
Arunachal Pradesh in Joint Venture with Hydro Power Corporation of
Arunchal Pradesh Limited. JPL is a member of Indian Energy Exchange
Limited and its subsidiary, Jindal Power Trading Company Limited has
obtained ÃC category power trading license and is a member of Power
Exchange of India Limited and both are trading in power on their
respective power exchanges.
Company is working actively in African Continent to explore different
business opportunities to be undertaken through subsidiaries.
Presently, it is active in four countries in Africa. Kasai Sud Diamant
SPRL, Congo, possessed mining rights for diamond and has till end of
April 2010 produced 12,000 carats of diamonds. Drilling has been
started at Banalia Site to prove Diamond kimberlite. In sourth Africa,
Jindal Mining SA (Pty) Limited is operating a coal mine namely
Keipersol Collinery in Piet Retief. TiIl April 2010 end, total coal
produced was about 2,25,000 tonnes and presently this mine is producing
70,000 tonnes per month. The Coal is being sold in local market as well
as being exported. The Company is targeting to produce one million
tonne coal in the year 2010-11. In Mozambique, JSPL Mozambique Minerais
LDA has applied for mining concession for coal block after completing
first phase drilling. The second phase drilling to convert the reserve
into the category of measured reserves has been started. Efforts are
being made to get more mining concessions in Mozambique. In Madagascar,
the Company is operating through two subsidiaries, namely Osha
Madgascar SARL and Jindal Madgascar SARL which has acquired three
Limestone blocks and is currently exploring these blocks. The Company
is stepping up its efforts to expand its business activities in Africa
and substantially increase the investment.
TRANSFER TO INVESTOR EDUCATION AND PROTECTION FUND
Pursuant to Section 205C of the Companies Act, 1956, the Company has
transferred unpaid / unclaimed dividend for 2001-02 amounting to Rs.
13,94,928/- to Investor Education and Protection Fund of Government of
India. The details including dates with respect to transfer of
unclaimed / unpaid dividend amounts to Investor Education and
Protection Fund of Central Government is given at the end of the Notice
of the Annual General Meeting.
EMPLOYEES STOCK OPTION
Details of allotment of shares made pursuant to Employees Stock Option
Scheme-2005 to the employees of the Company and its subsidiary, Jindal
Power Limited is given below:
S.No.Series No.of equity Date of allotment
Shares allotted
1 Series II (Part I) 57,136 13th April,2009
2 Series I (Part II) 4,20,487 21st July 2009
3 Series III (Part - I) 4,52,246 30th January 2010
4 Series II (Part II) 2,52,006 13th April 2010
Options under Series I (Part-III) and Series III (Part II) have vested
in the employees on 26th November, 2009 and 27th April, 2010
respectively and employees are entitled to exercise their options
during their respective exercise periods of six months from the date of
vesting.
As required by Clause 12 of SEBI (Employee Stock Option Scheme and
Employee Stock Purchase Scheme) Guidelines, 1999 information with
respect to active Stock Options as on 31st March, 2010 is given in a
separate statement as Annexure-I forming part of this Report.
LISTING
The equity shares continue to be listed on The Bombay Stock Exchange
Limited (BSE) and the National Stock Exchange of India Limited (NSE).
Both these stock exchanges have nation wide terminals and therefore,
shareholders / Investors are not facing any difficulty in trading in
the shares of the Company from any part of the country. The Company has
paid annual listing fee for 2010-11 to The Bombay Stock Exchange
Limited and The National Stock Exchange of India Limited and annual
custody fee to National Securities Depository Limited and Central
Depository Services (India) Limited. Shares issued against stock
options and bonus shares have been listed and trading permission have
been granted by these stock exchanges.
FIXED DEPOSITS
The Company has received Rs. 41.63 Crores as fresh deposits from 7,055
applicants during the year under report. The aggregate amount
outstanding in respect of fixed deposits as on 31st March, 2010 was Rs.
70.58 Crores representing 14,689 fixed deposit holders. Amount of
deposits that have matured but were unclaimed as on 31st March, 2010
was Rs. 73.06 lacs representing 315 deposit holders. Since then 65
deposits totaling Rs. 17.20 lacs have been paid / renewed.
DIRECTORS
Shri Arun Kumar, Additional Director will cease to be a director on the
date of forthcoming Annual General Meeting. A member has given notice
under section 257 of the Companies Act, 1956 for his appointment as
director of the Company. Shri Asok K. Mohapatra and Shri Ashok Alladi
resigned from the directorship of the Company from 26th June, 2009 and
31st August, 2009 respectively. Shri Naveen Jindal, Shri Vikrant
Gujral, Shri R.V. Shahi and Shri Arun Kumar Mukherji, Directors of the
Company will retire by rotation at the forthcoming Annual General
Meeting and being eligible have offered themselves for re-appointment.
PARTICULARS OF CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND
FOREIGN EXCHANGE EARNINGS AND OUTGO
Information pursuant to Section 217(1)(e) of the Companies Act, 1956
read with Rule 2 of the Companies (Disclosure of Particulars in the
Report of Board of Directors) Rules, 1988 regarding conservation of
energy, technology absorption and foreign exchange earnings and outgo
is given in Annexure II forming part of this report.
PARTICULARS OF EMPLOYEES
In terms of the provisions of Section 217(2A) of the Companies Act,
1956, read with the Companies (Particulars of Employees) Rules, 1975,
the particulars of employees are set out in Annexure-III to this
Report. However, as per the provisions of Section 219(1)(b)(iv) of the
said Act read with Clause 32 of the Listing Agreement, the Annual
Report excluding the aforesaid information is being sent to all the
members of the Company and others entitled thereto. Any member
interested in obtaining such particulars may write to the Company.
CORPORATE GOVERNANCE
Your Company has implemented the conditions of Corporate Governance as
contained in clause 49 of listing agreement. A separate report on
Corporate Governance and Management Discussion and Analysis along with
necessary certificates are given elsewhere in this report as Annexures
IV & V and form a part of this report.
AUDITORS
M/s S.S.Kothari Mehta & Co., Auditors of the Company hold office upto
the conclusion of the ensuing Annual General Meeting. The Company has
received communication from them to the effect that their
re-appointment, if made, would be within the limits prescribed under
Section 224(1B) of the Companies Act, 1956. They are proposed to be
re-appointed as Auditors of the Company for the financial year 2010-11.
DIRECTORS RESPONSIBILITY STATEMENT
Pursuant to the requirement under Sub Section 2AA of Section 217 of the
Companies Act, 1956 with respect to the Directors Responsibility
Statement, it is hereby confirmed:- i) that in preparation of the
annual accounts for the financial year ended 31st March, 2010 the
applicable accounting standards had been followed along with proper
explanations relating to material departures.
ii) that the Directors had selected such accounting policies and
applied them consistently and made judgements and estimates that are
reasonable and prudent so as to give a true and fair view of the state
of affairs of the Company at the end of the financial year and of the
profit of the Company for the year under report.
iii) that the Directors had taken proper and sufficient care for the
maintenance of adequate accounting records in accordance with the
provisions of the Companies Act, 1956 for safeguarding the assets of
the Company and by preventing and detecting fraud and other
irregularities.
iv) that the Directors had prepared the accounts for the financial year
ended 31st March, 2010 on a Ãgoing concern basis.
APPRECIATION
Your Directors wish to place on record their gratitude for the valuable
guidance and support given by Government of India, various State
Government departments, Financial Institutions, Banks, and various
stake holders, such as, shareholders, customers, suppliers etc. The
Directors also commend the continuing commitment and dedication of the
employees at all levels which has been critical for the Companys
growth. The Directors look forward to their continued support in
future.
For & on behalf of the Board
Savitri Jindal
Chairperson
Place : New Delhi
Date : 4th May, 2010
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