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நிறுவன பெயரின் முதல் சில எழுத்துக்களை நிரப்பி 'கோ' பட்டனை கிளிக் செய்யவும்

Jindal Steel & Power Ltd. இன் கணக்கு குறிப்புகள்

Mar 31, 2023

1) During the year the company has issued letter of comfort to the borrower for investment in equity shares of Jindal Steel Chhattisgarh Ltd, (wholly owned subsidiary) of amounting to H 100 Crores for an amount equivalent to the facility provided .

2) Pari Passu charges over pledge / non disposal undertaking (NDU) of shares of Jindal Steel Odisha Limited (JSOL) held by the Company (pledge of 30% of the shares and NDU for remaining 70% shares). As on 31st March 2023, Company has pledged 21,91,00,000 nos. of fully paid up equity shares and 22,03,92,000 nos. of fully paid up preference shares of JSOL (out of 26,09,82,000 nos. of preference shares) and pledge for balance 4,05,90,000 nos. of preference shares, is in process. Further Company has given undertaking/ commitment to the bank/lenders for investment in JSOL upto H 6,741 crore.

3) Partly paid up H 48.80 (Previous year H 48.80) per debenture.

4) During the earlier years, the Company has Invoked 2,00,00,000 share of H 10 each of Bharat NRE Coke Limited, pledge against advance given to a vendor @ Nil Value.

5) During the year company has made provision for diminution in Investment of Jindal Steel & Power (Mauritius) Limited and Ivy Cap Ventures Trust Fund amounting to H 575.73 crore and H 0.89 crore respectively; and reversal of provision of H 22.01 crore.

(f) (i) Employees Stock Option Scheme (JSPL ESOP Scheme-2017)

The Board of Directors in its meeting held on 8th August, 2017 approved the JSPL Employee Stock Option Plan 2017(JSPL ESOP Scheme-2017) and the same was approved by the shareholders in the Annual General Meeting held on 22nd September 2017, in accordance with SEBI (Share Based Employee Benefits) Regulations 2014.

Pursuant to the JSPL ESOP Scheme-2017 , the Company may grant upto 4,50,00,000 options convertible into equal number of equity shares of H 1 each.

The Nomination and Remuneration Committee of the Board in its meeting held on 5th January, 2018 granted 51,21,735 options convertible into equal number of equity shares of the Company, to the eligible employees of the Company and its subsidiaries, at an exercise price of H 244.55 per option. As per JSPL ESOP Scheme-2017 the vesting period shall not be less than one year and maximum period will be three years. The employee shall exercise his options within a period of six months from respective vesting. 50,45,222 options have been surrendered/lapsed and balance outstanding as on 31st March 2021 was 76,513 options(vesting schedule is over and period of exercise is six month from respective vesting schedule). During the year ended 31st March 2022, the Company has allotted 72,126 equity shares at an exercise price of H 244.55 per share including premium of H 243.55 per share to the eligible employees of the Company and its subsidiaries, under JSPL ESOP Scheme - 2017 and balance outstanding is NIL option as on 31st March 2023.

(ii) Employee Stock Option Scheme/ Employee Share Purchase Scheme

The Board of Directors in its meeting held on 25th April, 2013 and 9th August, 2018 approved JSPL ESPS-2013 and JSPL ESPS-2018 respectively and the same were approved by the shareholders through Postal Ballot on June 21, 2013 and in the Annual General Meeting held on September 28, 2018 respectively, in accordance with the Securities and Exchange Board of India (Share Based Employee Benefits ) Regulations, 2014.

Equity Shares/ grants as per JSPL ESPS-2013 and JSPL ESPS-2018 will be allotted in upcoming financial years.

(c) Terms/rights attached to equity shares

The Company has only one class of equity shares having par value of H 1 per share. Each holder of equity share is entitled to one vote per share. The Company declares dividend in Indian Rupees. The dividend, if any, proposed by the Board of Directors is subject to approval of the Shareholders in the ensuing Annual General Meeting.

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company after payment of all liabilities. The distribution will be in proportion to the number of equity shares held by the shareholders.

(d) Aggregate number of bonus shares issued, shares issued for consideration other than cash and shares bought back during the period of five years immediately preceding the reporting date:

In accordance with Section 68 of the Companies Act,2013 and buy back regulations of SEBI, the Company has not buy back any equity shares during the five years immediately preceding 31st March, 2023.

During the five years immediately preceding 31st March, 2023, the Company has not allotted any equity shares as bonus shares and also not issued any share for consideration other than cash.

(iii) In March 2022, the Company instituted Jindal Steel & Power Employee Benefit Scheme - 2022 ("Scheme") to provide equity based remuneration to all its eligible employees of the Group Company(ies) including subsidiary company(ies) or its Associate company(ies), in India or outside India, of the Company. The Scheme is administered by the Nomination and Remuneration Committee of the Directors of the Company and is implemented through JSP Employee Benefit ("Trust"). A maximum of 5,10,00,798 options may be granted under the Scheme. Each option granted under the Scheme entitles the holder to one fully paid up equity share of the Company (JSP) at an exercise price, which will be decided by the Board of Directors.

Till 31st March 2023, the Trust has acquired 1,50,60,427 ( Previous year 93,51,748 ) nos. of equity shares of the Company were acquired through secondary acquisition by the JSP Employee Benefit Trust under Part A of Chapter III of Securities and Exchange Board of India (Share Based Employee Benefits and Sweat Equity) Regulations, 2021, for grant of options to its eligible employees, by March 31, 2023.

The Nomination & Remuneration Committee, in its meeting held on March 28, 2023, accorded to appropriate the aforementioned equity shares beyond March 31, 2023, which shall not extend beyond the second subsequent financial year post their acquisition i.e. FY 2023-24.

(i) Securities Premium Reserve represents the amount received in excess of par value of securities issued by the company. This reserve is utilised/to be utilised in accordance with provisions of the Act.

(ii) Capital Redemption Reserve represents the statutory reserve created on buy back of shares. It is not available for distribution.

(iii) Share Option Outstanding Account relate to stock option granted by the company to employee under JSPL employee stock option plan, 2017 of H Nil (31st March-22 H Nil). This reserve is transferred to retained earning on cancellation of vested option. (Refer note 20(f)(i)).

(iv) Other Comprehensive income represents the balance in equity for items to be accounted in classified into i) Items that will not be reclassified to profit & loss ii) Items that will be reclassified to profit & loss including unbundling of certain convertible instruments and read with note no. 59.

Notes:

I Term Loans from Banks

(i) Term Loans of K 2,032.98 crore (March 31,2022 K 7,088.20 crore) are secured as under

- First pari-passu charge over the immovable fixed assets (except immovable properties at Tensa mines, leasehold land having aggregate area of 551.49 acres at Patratu, Jharkhand and leasehold land having aggregate area of 2,246.12 acres at Angul, Odisha), both present and future of the company and

- First pari-passu charge movable fixed assets of the company by way of hypothecation, both present and future and

- Second ranking pari-passu charge by way of hypothecation over all the current assets, both present and future, of the company; Repayment schedule of these loans is as follows:

Loans of H 399.36 crores is repayable in 5 quarterly instalments and the next instalment is due on 15th April, 2023.

Loan of H 474.64 crores is repayable in 9 quarterly instalments and the next instalment is due on 30th June, 2023.

Loans of H 230.84 crores is repayable in 8 quarterly instalments and the next instalment is due on 30th June, 2023.

Loans of H 263.16 crores is repayable in 5 quarterly instalments and the next instalment is due on 30th June, 2023.

Loans of H 664.98 crores has been prepaid in full subsequent to Balance sheet date on 17th April, 2023

(ii) Term Loans K 3,690.91 crores (March 31, 2022 K NIL) are secured (security created/to be created) by way of:

During Financial Year 2022-23, Company has refinanced the existing project loan of H 3,825 crore (with cut off date of 30th September 2022), Outstanding as on 31st March 2023 H 3,690.91 crore are secured as under

- First pari-passu charge over entire immovable fixed assets (except leasehold land having aggregate area of 2,246.12 acres at Angul, Odisha) of the company situated at Angul, Odisha, both present and future of the company and

- First pari-passu charge movable fixed assets of the company situated at Angul, Odisha by way of hypothecation, both present and future and

- Second ranking pari-passu charge by way of hypothecation over all the current assets, both present and future, of the company; Repayment schedule of these Refinanced Project Term loans are as follows:

Loans of H 3,690.91 crores is repayable in 26 quarterly instalments and the next instalment is due on 30th June, 2023.

(iii) Loans ofH NIL (March 31, 2022 H 840.91 crores) was secured by Pooled Security i.e first pari-passu charge over the immovable fixed assets (except immovable properties at Tensa mines and immovable leasehold properties having aggregate area of 551.49 acres at Patratu, Jharkhand) & movable fixed assets and second pari-passu charge on the current assets, both present & future, of the Company in favour of the Term Loan Lenders with priority over cash flows under TRA agreement and security in case of liquidation.

II Term Loans of K 742.86 crores (March 31, 2022 K NIL) are secured (security created/to be created) by way of:

During Financial Year 2022-23, Company has refinanced the existing priority loan of H 800 crore, Outstanding as on 31st March 2023 H 742.86 crore are secured as under:

- First pari-passu charge over entire immovable fixed assets (except leasehold land having aggregate area of 2,246.12 acres at Angul, Odisha) of the company situated at Angul, Odisha , both present and future of the company and

- First pari-passu charge movable fixed assets of the company situated at Angul, Odisha by way of hypothecation, both present and future and

- Second ranking pari-passu charge by way of hypothecation over all the current assets, both present and future, of the company; Repayment schedule of this Refinanced Term loan are as follows:

Loans of H 742.86 crores is repayable in 16 quarterly instalments and the next instalment is due on 30th June, 2023.

III Loans of K 1,889.36 crores (March 31, 2022 K 2,108.44 crores ) are secured by way of:

- First pari-passu charge over the immovable fixed assets (except immovable properties at Tensa mines, leasehold land having aggregate area of 551.49 acres at Patratu, Jharkhand and leasehold properties having aggregate area of 2,246.12 acres at Angul, Odisha), both present and future of the company and

- First pari-passu charge movable fixed assets of the company by way of hypothecation, both present and future and

- First ranking pari-passu charge by way of hypothecation over all the current assets, both present and future, of the company;" Repayment schedule of these loans is as follows:

(i) Loans of H 658.73 crores is repayable in 19 quarterly instalments and the next instalment is due on 30th June, 2023.

(ii) Loans of H 409.97 crores has been prepaid in full subsequent to balance sheet date on 3rd April 2023

(iii) Loans of H 820.66 crores has been prepaid in full subsequent to balance sheet date on 17th April 2023

IV Loans of K 1,352.40 crores (March 31, 2022 K Nil) are secured (created/to be created) by way of:

- First pari-passu charge over entire immovable fixed assets (except leasehold land having aggregate area of 2,246.12 acres at Angul, Odisha) of the company situated at Angul, Odisha, both present and future of the company and

- First pari-passu charge movable fixed assets of the company situated at Angul, Odisha by way of hypothecation, both present and future and

- Second ranking pari-passu charge by way of hypothecation over all the current assets, both present and future, of the company;

- Additionally, term loan of H 217.35 crore is also secured over first pari-passu mortgage over the newly allocated coal mines

(i.e Utkal BI & B2 and Utkal C coal mines in Odisha and Gare Palma IV/6 coal mine in Chhattisgarh), etc.

Repayment schedule of this Term loans are as follows:

Loans of H 1,352.40 crores is repayable in 26 quarterly instalments and the next instalment is due on 30th June, 2023.

V Secured Term Loan Lenders mentioned in Note No 22(i) and Working Capital Lenders mentioned in Note No 26(i) & (ii) are further secured by way of pledge over 4.31 crore equity shares of Jindal Steel & Power Limited held by OPJ Trading Private Limited (The Promoter Company).

VI Opelina Sustainable Services Private Limited (Promoter Company) has created Non Disposal Undertaking (NDU) over 9.13 crore equity shares of Jindal Steel & Power Limited (JSPL) held by the promoter company in favour of State Bank of India, the Lead Bank for the benefit of all the Secured Term Loan Lenders mentioned in Note No 22(i) and Working Capital Lenders mentioned in Note No 26(i) & (ii).

I Cash Credit from Banks and Buyer''s Credit

The working capital facility mentioned in 26 (i) & 26 (ii) of H 1,454.82 crores (March 31, 2022 H 1,754.34 crores) are secured through following

- second pari-passu charge over the immovable fixed assets (except immovable properties at Tensa mines, immovable leasehold properties having aggregate area of 551.49 acres at Patratu, Jharkhand and immovable leasehold properties having aggregate area of 2,246.12 acres at Angul, Odisha), both present and future of the company, and

- second pari-passu charge over the movable fixed assets of the company situated at Angul, Odisha, by way of hypothecation, both present and future of the company and

- first pari-passu charge on the current assets, both present & future, of the Company

40 (a) Contingent liabilities and claims against the company

(to the extent not provided for & certified by the management)

(I in crores)

Particulars

As at 31.03.2023

As at 31.03.2022

Contingent Liabilities

i) GUARANTEES AND UNDERTAKINGS:

a) Guar.inlees issued by the ( ompany''s Bankers on behalf of the ( ompany *

i,6i/.(M

2,889.29

b) C orporate guarantees,/undertakings issued on behalf of third parties

7 76.81

895.78

ii) DEMAND/LITIGATIONS:

a) Disputed Statutory and Other demands,;,''

1,6)9.94

2,926.76

(Ixcise Duty, C entral Sales tax, C ustoms Duty, Inergy Development C ess,

Electricity Duty, Entry Tax, Service Tax, Value Added Tax, Royalty)

b) Income Tax demands where the cases are pending at various stages of appeal with the appellate authorities

1,135.91

1,135.91

c) Claims by suppliers, other parties and Government

289.44

324.97

iii) Bonds executed for machinery imports under EPCG Scheme

50.04

53.12

9,529.18

8,225.83

It is not possible to predict the outcome of the pending litigations with accuracy, the Company believes, based on legal opinions received and/or internal assessment, that it has meritorious defences to the claims. The management believe the pending actions will not require outflow of resources embodying economic benefits and will not have a material adverse effect upon the results of the operations, cash flows or financial condition of the Company.

OTHERS

@ (i) During the year, the Company has received show cause notices followed by Demand notices from Joint Director of Mines, in relation to its mining operations at Kasia Iron & Dolomite Block, Odisha, alleging loss of royalty and other levies aggregating to H 442.65 crores inter-alia alleging shortfall in despatch for the period from November 11, 2021 to February 19, 2022, visa a vis minimum dispatch required as per Mine Development and Production Agreement (MDPA). The Company has contested the said demand by filing revision applications before Revisional Authority, Ministry of Mines, Government of India, since the Company couldn''t commence mining activities as a group of people approached the subject Mine and illegally and unlawfully obstructed the entry of employees and machinery, demanding unreasonable rates for transportation. Also in this regard, the Company had approached Hon''ble High Court of Odisha in December 2021 praying for their direction to concerned parties to take necessary steps to remove illegal blockade from and around the Mining area and shift the assessment date under the MDPA for the above stated period and Hon''ble High Court was pleased to issue notice on the matter. The Company has evaluated the matter and concluded that the outflow of resources is remote and accordingly, no provision is made in this regard.

@ (ii) The Directorate of Enforcement had passed a Provisional Attachment order in earlier year to attach fixed deposits of H 60 Crore. [to the extent of H 58.01 Crore with interest accrued as on date of taking possession after confirmation of this order] in relation to the alleged excess mining from Gare Palma IV/1 which was granted to Jindal Steel & Power (the Company). The Company has filed a Writ Petition challenging the said Provisional Attachment order and the Hon''ble High Court of Delhi had stayed the proceedings before the Adjudicating Authority. Further the Company had paid the royalty amount as per the applicable rates, in terms of the lease agreement and had also filed returns with the authorities in time. Further, in the opinion of the company also the attachment is bad in law as attachment pertains to alleged unauthorized mining which is not a Scheduled Offence under the PMLA. Based on above and as per the advise of an expert the management believes that it has a creditable case in its favour.

@ (iii) During the year, the Company has received Order of Seizure dated March 24, 2023 from Assistant Director, Directorate of Enforcement, (Prevention of Money Laundering Act 2002 & Foreign Exchange Management Act, 1999) alleging contravention of provisions of FEMA on account of non-repatriation of foreign exchange (held outside India) to India and subsequent to the Balance Sheet date, the authority has attached Bank fixed deposits of H 109.55 crores. The Company believes that it has a creditable case in its favour and there will be no material impact of this on standalone financial statement.

Due to the restrictions in the type of investment that can be held by the gratuity and the pension fund regulation, it''s not possible to explicitly follow on assets-liability matching strategy to manage risk actively.

The estimate of future salary increases, considered in actuarial valuation, takes into account inflation, seniority, promotions and other relevant factors. The above information has been certified by the actuary and has been relied upon by the auditors.

45. The Company is primarily engaged in the business of manufacture steel products. In accordance with Ind AS 108 "Operating Segments", the Company has presented segment information on the basis of its consolidated financial statements

46. a) Pursuant to the Judgment dated 25.08.2014 read with Order dated 24.09.2014 passed by the Hon''ble Supreme Court the allocation

of the coal blocks, Gare Palma IV/1 (operational); Utkal B-1, Amarkonda Murgadangal, Gare Palma IV/6, Ramchandi, Urtan North and Jitpur (non-operational) to the Company/its joint ventures stand de-allocated. Prior to the said de-allocation by the Hon''ble Supreme Court, the Government had invoked bank guarantees provided by the Company to the extent of H 155 crore with respect to Ramchandi, Amarkonda Murhadangal, Urtan north and Jitpur Coal Blocks. These matters were contested by the Company at various levels and the invocation of the said bank guarantees had been stayed by the respective Hon''ble High Courts. Bank guarantees amounting to H 155 crore were earlier provided by the Company for the above mentioned four non- operational coal blocks. During the previous year, Office of Coal Controller has returned the bank guarantee amounting to H 16.59 crore related to the Jitpur coal block.

Pursuant to the said de-allocation by the Hon''ble Supreme Court and pending the decision/s of the Hon''ble High Courts on the challenge to the show cause notices issued by the Ministry of Coal, calling upon the Company to show cause as to why the delay in the development of the non-operational coal blocks should not be held as violation of the terms and conditions of the allocation letters of the said stated coal blocks, the respective Hon''ble High Courts have required the Company to keep the said Bank Guarantees alive. In the meantime, the invocation of the bank guarantees has been stayed by the Hon''ble High Courts.

The final adjudication of the subsequent show cause notices on the issue is pending before the Ministry of Coal and the Company believes that it has good case in its favour in respect to this matter and hence no provision is considered necessary.

b) During previous year, the Company has also won in the auction held, for the coal blocks at Utkal C, Utkal B1 and Utkal B2 in State of Odisha; and the Gare Palma IV/6 mine in Chattisgarh State. Execution of lease deeds in respect of these mines are pending.

d) Securities given

i) Fixed Deposits of H Nil (previous year H 1158.56 crore ) was under lien with banks against issue of letter of credit to Jindal Steel Odisha Limited (JSO), Wholly Owned Subsidiary.

ii) Capex LC facility of H4,000 crores sanctioned to JSO and amount outstanding as on 31st March, 2023 is H 3397 crores, is secured by way of:

1. Pledge/NDU over 100% shares of JSO held by the Company.

2. Pari passu charge over the cash flows with working capital lenders of the Company under TRA arrangement.

The above capex LC limit has been availed by the subsidiary Company for its project which is under implementation (wholly owned subsidiary Jindal Steel Odisha Limited)

iii) Rupee Term Loan facility of H 15,727 Crores availed/to be availed by JSO is secured by way of Corporate Guarantee from JSP, (Yet to be created as at 31st March 2023). The same is also be secured by way of Pledge of 51% of Equity shares and 100% of CCPS (Not yet created as at 31 March 2023).

iv) Capex LC facility of H 2,150 crores availed/to be availed by JSO is secured by way of Corporate Guarantee from JSP, amount outstanding as on 31st March 2023 is H 489.40 crores.

49. (i) Company has investment in its wholly owned subsidiary, Jindal Steel & Power (Mauritius) Limited ("JSPML") of H 575.73 crores in the form of equity shares and also in the form of loans amounting to H 13,022.02 crores as on March 31, 2023, JSPML in turn has investments in stepdown subsidiaries (incorporated in various countries) which are operating in the activities of coal mining (including subsidiaries in Australia which is engaged in coal mining), mining of iron ore and also some of the stepdown subsidiaries are holding mining assets which are under development stage. JSPML has been incurring losses and recorded loss of H 7,890.92 crores for the year ended March 31, 2023. The net worth of the Company JSPML has become negative by H 9,729.06 crores as on March 31, 2023 and auditors of JSPML have drawn attention in their audit report on "Going Concern Basis" issue.

(ii) During the year, the management of the Company has decided on prudent basis not to recognise interest w.e.f. July 1, 2022, and also made provision against outstanding interest of H 765.45 crores recoverable from JSPML. Further, considering the assessment carried out by an independent valuer and based on the report of a valuer, the Company had made provision for diminution in value against investment of H 444 crores (net of Deferred tax assets of H 131.73 crores) and also made provision against loan of H 4,904.48 crores (net of Deferred tax assets of H 1,772.39 crores (excluding provision made against foreign exchange fluctuation (net) of H 898.48 crores. In the opinion of the management the balance amount considered good is recoverable.

52. FINANCIAL RISK MANAGEMENT

The Company''s principal financial liabilities, other than derivatives, comprise borrowings, trade and other payables, and financial guarantee contracts. The main purpose of these financial liabilities is to manage finances for the Company''s operations. The Company''s financial assets comprise investments, loan and other receivables, trade and other receivables, cash, and deposits that arise directly from its operations.

The Company''s activities are exposed to market risk, credit risk and liquidity risk. In order to minimise adverse effects on the financial performance of the Company, derivative financial instruments such as forward contracts are entered into to hedge foreign currency risk exposure. Derivatives are used exclusively for hedging purposes and not as trading and speculative purpose. Further, this to be read with note 50a.

I. Market risk

Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Market prices comprise three types of risk: currency rate risk, interest rate risk and other price risks, such as equity price risk and commodity risk. Financial instruments affected by market risk include loans and borrowings, deposits, investments, and derivative financial instruments.

The sensitivity analysis in the following sections relate to the position as at 31st March 2023 and 31st March 2022.

The analysis exclude the impact of movements in market variables on: the carrying values of gratuity and other post-retirement obligations; provisions. The sensitivity of the relevant profit or loss item is the effect of the assumed changes in respective market risks. The Company uses derivative financial instruments such as foreign exchange forward contracts of varying maturity depending upon the underlying contract and risk management strategy to manage its exposures to foreign exchange fluctuations.

(a) Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. In order to optimize the Company''s position with regard to interest income and interest expenses and to manage the interest rate risk, the Company performs a comprehensive corporate interest rate risk management by balancing the proportion of the fixed rate and floating rate financial instruments in its total portfolio.

Fair valuation of financial guarantees

Financial guarantees issued by the company on behalf of its overseas subsidiary have been measured at fair value through profit and loss

account. Fair value of said guarantees as at March 31, 2023 is Nil (March 31, 2022 H Nil) have been considered by the management on the basis

of valuation carried out by an independent professional.

Fair valuation techniques

The Company maintains policies and procedures to value financial assets or financial liabilities using the best and most relevant data available.

The fair values of the financial assets and liabilities are included at the amount that would be received to sell an asset or paid to transfer a

liability in an orderly transaction between market participants at the measurement date.

The following methods and assumptions were used to estimate the fair values:

1) Fair value of cash and deposits, trade receivables, trade payables, and other current financial assets and liabilities approximate their carrying amounts largely due to the short-term maturities of these instruments.

2) Long-term fixed-rate and variable-rate receivables / borrowings are evaluated by the Company based on parameters such as interest rates, specific country risk factors, credit risk and other risk characteristics. Fair value of variable interest rate borrowings approximates their carrying values. For fixed interest rate borrowing fair value is determined by using the discounted cash flow (DCF) method using discount rate that reflects the issuer''s borrowings rate. Risk of non-performance of the Company is considered to be insignificant in valuation.

3) The fair values of derivatives are estimated by using pricing models, where the inputs to those models are based on readily observable market parameters basis contractual terms, period to maturity, and market parameters such as interest rates, foreign exchange rates, and volatility. These models do not contain a high level of subjectivity as the valuation techniques used do not require significant judgement, and inputs thereto are readily observable from actively quoted market prices. Management has evaluated the credit and non-performance risks associated with its derivative counterparties and believe them to be insignificant and not warranting a credit adjustment.

(b) Foreign currency risk

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. The Company transacts business primarily in Indian Rupees and US dollars. The Company has obtained foreign currency loans and has foreign currency trade payables and receivables and is therefore exposed to foreign exchange risk. Certain transactions of the Company act as a natural hedge as a portion of both assets and liabilities are denominated in similar foreign currencies. For the remaining exposure to foreign exchange risk the Company adopts a policy of selective hedging based on risk perception of the management. Foreign exchange contracts are carried at fair value.

The Company hedges its exposure to fluctuations by using foreign currency forwards contracts on the basis of risk perception of the management.


(c) Commodity Price Risk

Commodity Price Risk is the risk that future cash flow of the Company will fluctuate on account of changes in market price of key raw materials.

The Company is exposed to the movement in price of key raw materials in domestic and international markets. The Company has in place policies to manage exposure to fluctuations in the prices of the key raw materials used in operations. The Company enters into contracts for procurement of materials, most of the transactions are short term fixed price contract and a few transactions are long term fixed price contracts.

II. Credit risk

Credit risk arises from the possibility that the counterparty will default on its contractual obligations resulting in financial loss to the Company. To manage this, the Company periodically assesses the financial reliability of customers, taking into account the financial conditions, current economic trends, and analysis of historical bad debts and ageing of accounts receivable.

The Company considers the probability of default upon initial recognition of assets and whether there has been a significant increase in credit risk on an ongoing basis through each reporting period. To assess whether there is significant increase in credit risk, it considers reasonable and supportive forward looking information such as:

III. Liquidity Risk

Liquidity risk refers to risk of financial distress or extra ordinary high financing cost arising due to shortage of liquid funds in a situation where business conditions unexpectedly deteriorate and require financing. The Company''s objective is to maintain at all times optimum levels of liquidity to meet its cash and collateral requirements. Processes and policies related to such risk are overseen by senior management and management monitors the Company''s net liquidity position through rolling forecast on the basis of expected cash flows.

55. IMPAIRMENT REVIEW

Assets are tested for impairment whenever there are any internal or external indicators of impairment.

Impairment test is performed at the level of each Cash Generating Unit (''CGU'') or groups of CGUs within the Company at which the goodwill or other assets are monitored for internal management purposes, within an operating segment.

The impairment assessment is based on higher of value in use and value from sale calculations.

During the year, the testing did not result in any impairment in the carrying amount of assets except as disclosed in exceptional item (Refer Note 57).

The measurement of the cash generating units'' value in use is determined based on financial plans that have been used by management for internal purposes. The planning horizon reflects the assumptions for short to- mid term market conditions.

Key assumptions used in value-in-use calculations:

• Operating margins (Earnings before interest and taxes)

• Discount Rate

• Growth Rates

• Capital expenditures

Operating margins: Operating margins have been estimated based on past experience after considering incremental revenue arising out of adoption of valued added and data services from the existing and new customers, though these benefits are partially offset by decline in tariffs in a hyper competitive scenario. Margins will be positively impacted from the efficiencies and initiatives driven by the Company; at the same time, factors like higher churn, increased cost of operations may impact the margins negatively.

Discount rate: Discount rate reflects the current market assessment of the risks specific to a CGU or group of CGUs. The discount rate is estimated based on the weighted average cost of capital for respective CGU or group of CGUs.

Growth rates: The growth rates used are in line with the long term average growth rates of the respective industry and country in which the Company operates and are consistent with the forecasts included in the industry reports.

Capital expenditures: The cash flow forecasts of capital expenditure are based on past experience coupled with additional capital expenditure required.

57. EXCEPTIONAL ITEMS INCLUDES :-

Exceptional items for the year ended 31st March 2023 of H 3,258.26 crores (Previous Year H 323.71 Crore) represents :

a) Gain of H 5,804.69 crores, against sale of stake (equity capital and preference investment) of the Company in Jindal Power Limited. Accordingly, fair value gain recognized earlier, on preference bonus shares of H 2,363.03 crores has been de-recognised under ''Other Comprehensive Income (Refer Note No.59);

b) In respect of JSPML (Refer Note No. 49): (i) provision against diminution in value against investment of H 575.73 crores and against loan of H 6,676.87 crores [excluding provision made against foreign exchange fluctuation (net) of H 898.48 crores]; (ii) provision against interest of H 765.45 crores; and (iii) provision made against exchange fluctuation (net) of H 898.48 crores.

c) Write off Capital work-in-progress/ project advances of H 146.42 crores.

58. The Company has filed legal suits /notices or in the process of filing legal case /sending legal notices / making efforts for recovery of debit balances of H 178.00 crore (PY. 2021-22 H 178.68 crore) plus interest, wherever applicable,which are being carried as long term /short term advances, trade receivables and other recoverable. Pending outcome of legal proceedings/Company ''s efforts for recovery and based on legal advise in certain cases , the Company has considered aforesaid amounts as fully recoverable. Hence, no provision has been made in respect of these balances.

59. The shareholders of the Company had approved the sale of Company''s entire 96.42% stake in equity capital and preference investment in Jindal Power Limited (''JPL'' or ''Target Company'') for a total consideration of H 7,401.29 crores, out of which (i) H 3,015 crores payable in cash, and (ii) the balance of H 4386.29 crores by inter corporate deposit and capital advance of H 1532.29 cores and H 2854 crores respectively extended by JPL to the company. On receipt of full cash consideration of H 3015 crore, the transaction has been concluded during the year and gain (exceptional item) on the above transaction is H 5,804.69 crores has been accounted for. Accordingly, fair value gain recognized earlier, on preference bonus shares of H 2,363.03 crores is de-recognized under ''Other Comprehensive Income''.

61. The Code on Social Security, 2020 (''Code'') has been notified in the Official Gazette in September 2020 which could impact the contribution by the Company towards certain employment benefits. The effective date from which the changes and rules would become applicable is yet to be notified. Impact of the changes will be assessed and accounted in the relevant period of notification of relevant provisions.

62. Balances of certain advances, creditors (including MSME) and receivables are in process of confirmation/reconciliation. Management believe that on reconciliation/ confirmation there will not be any material impact on statement of financial statements.

63. INFORMATION RELATED TO CONSOLIDATED FINANCIAL

The company is listed on stock exchanges in India, the Company has prepared consolidated financial as required under IND AS 110, Sections 129 of Companies Act, 2013 and as per the listing requirements. The consolidated financial statement is available on company''s web site for public use.

64. OTHER STATUTORY INFORMATION

a) The Company does not have any benami property, where any proceeding has been initiated or pending against the Company for holding any benami property.

b) The Company has not traded or invested in Crypto currency or Virtual currency during the financial year.

c) The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (intermediaries) with the understanding that the intermediary shall:

(i) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company (ultimate beneficiaries) or

(ii) provide any guarantee, security or the like on behalf of the ultimate beneficiaries.

d) The Company has not received any fund from any person(s) or entity(ies), including foreign entities (funding party) with the understanding (whether recorded in writing or otherwise) that the Company shall:

(i) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the funding party (ultimate beneficiaries) or

(ii) provide any guarantee, security or the like on behalf of the ultimate beneficiaries.

66. Previous year figures have been regrouped/ rearranged, wherever considered necessary to conform to current year''s classification. Figures less than 50000 have been shown as absolute number.

67. Notes 1 to 67 are annexed to and form an integral part of financial statements.

e) The Company does not have any such transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961).

f) The Company has complied with the number of layers prescribed under clause (87) of section 2 of the Act read with the Companies (Restriction on number of Layers) Rules, 2017

g) The Company is not declared wilful defaulter by and bank or financial institution or lender during the year.

h) The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period except the charges yet to be created as stated in footnotes to note no. 22

i) Quarterly returns or statements of current assets filed by the Company with banks or financial institutions are in agreement with the books of accounts.

j) The Company has used the borrowings from banks and financial institutions for the specific purpose for which it was obtained.

k) The title deeds of all the immovable properties, (other than immovable properties where the Company as the lessee and the lease agreements are duly executed in favour of the Company) disclosed in the financial statements included in property, plant and equipment and capital work-in progress are held in the name of the Company as at the balance sheet date except as stated in footnote no 2 of note no. 5.

l) The Company does not have any transactions with companies which are struck off.


Mar 31, 2022

Terms/rights attached to equity shares

The Company has only one class of equity shares having par value of per share. Each holder of equity share is entitled to one vote per share. The Company declares dividend in Indian Rupees. The dividend, if any, proposed by the Board of Directors is subject to approval of the Shareholders in the ensuing Annual General Meeting.

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company after payment of all liabilities. The distribution will be in proportion to the number of equity shares held by the shareholders.

Aggregate number of bonus shares issued, shares issued for consideration other than cash and shares bought back during the period of five years immediately preceding the reporting date:

In accordance with Section 68 of the Companies Act,2013 and buy back regulations of SEBI,the Company has not buy back any equity shares during the five years immediately preceding 31st March, 2022.

During the five years immediately preceding 31st March, 2022, the Company has not allotted any equity shares as bonus shares and also not issued any share for consideration other than cash.

As per records of the Company, including its register of shareholders/members and other declarations received from shareholders regarding beneficial interest, the above shareholding represents both legal and beneficial ownership of shares.

(f) (i) Employees Stock Option Scheme (JSPL ESOP Scheme-2017)

The Board of Directors in its meeting held on 8th August, 2017 approved the JSPL Employee Stock Option Plan 2017(JSPL ESOP Scheme-2017) and the same was approved by the shareholders in the Annual General Meeting held on 22nd September 2017, in accordance with SEBI (Share Based Employee Benefits) Regulations 2014.

Pursuant to the JSPL ESOP Scheme-2017 , the Company may grant upto 4,50,00,000 options convertible into equal number of equity shares of C1 each.

The Nomination and Remuneration Committee of the Board in its meeting held on 5th January, 2018 granted 51,21,735 options convertible into equal number of equity shares of the Company, to the eligible employees of the Company and its subsidiaries, at an exercise price of C244.55 per option. As per JSPL ESOP Scheme-2017 the vesting period shall not be less than one year and maximum period will be three years. The employee shall exercise his options within a period of six months from respective vesting. 50,45,222 options have been surrendered/lapsed and balance outstanding as on 31st March 2021 was 76,513 options(vesting schedule is over and period of exercise is six month from respective vesting schedule). During the year ended 31st March 2022, the Company has allotted 72,126 equity shares at an exercise price of C244.55 per share including premium of C243.55 per share to the eligible employees of the Company and its subsidiaries, under JSPL ESOP Scheme - 2017 and balance outstanding is NIL option as on 31st March 2022.

(f) (ii) Employee Stock Option Scheme/ Employee Share Purchase Scheme

The Board of Directors in its meeting held on 25th April,2013 and 9th August,2018 approved JSPL ESPS-2013 and JSPL ESPS-2018 respectively and the same were approved by the shareholders through Postal Ballot on June 21, 2013 and in the Annual General Meeting held on September 28, 2018 respectively, in accordance with the Securities and Exchange Board of India (Share Based Employee Benefits) Regulations, 2014.

(f) (iii) In March 2022, the Company instituted Jindal Steel & Power Employee Benefit Scheme - 2022 ("Scheme") to provide equity based remuneration to all its eligible employees of the Group Company(ies) including subsidiary company(ies) or its Associate company(ies), in India or outside India, of the Company. The Scheme is administered by the Nomination and Remuneration Committee of the Directors of the Company and is implemented through JSP Employee Benefit Trust. A maximum of 5,10,00,798 options may be granted under the Scheme. Each option granted under the Scheme entitles the holder to one fully paid up equity share of the Company (JSP) at an exercise price, which will be decided by the Board of Directors.

Till 31st March 2022, the Trust has acquired 93,51,748 nos. of equity shares of the Company from secondary market for the purposes of implementation of the Scheme, against which options are pending to be granted.

Notes:

I Pooled Security

''The Company has entered into a pooling agreement with all the Secured Lenders and Security Trustee on 26th February''2020, whereby

the following security structure was agreed upon in terms of sanctioned facilities:

(a) first pari passu charge over the immovable fixed assets (except immovable properties at Tensa mines and immovable leasehold properties having aggregate area of 551.49 acres at Patratu, Jharkhand) & movable fixed assets and second pari passu charge on the current assets, both present & future, of the Company in favour of the Term Loan Lenders ; and

(b) second pari passu charge over the immovable fixed assets (except immovable properties at Tensa mines and immovable leasehold land admeasuring 551.49 acres at Patratu, Jharkhand) & movable fixed assets and first pari passu charge on the current assets, both present & future, of the Company in favour of the Working Capital Lenders.

The above security constitutes as ""Pooled Security"".

II Debentures

Security

Debentures of C Nil (March 31, 2021 C12.40 crore) were placed initially with SBI Life Insurance Company Limited on private placement basis.

Above debentures were secured by Pooled Security as described in Note 22(I)(a).

III Term Loans from Banks

(a) Loans of C7,088.20 crores (March 31, 2021 C11,295.03 crore) are secured by Pooled Security as described in Note 22(I) (a).

Repayment schedule of these loans is as follows:

Loan of C274.48 crores is repayable in 47 quarterly instalments and the next instalment is due on 30th June, 2022.

Loans of C3,619.42 crores is repayable in 45 quarterly instalments and the next instalment is due on 30th June, 2022.

Loans of C1,002.52 crores is repayable in 13 quarterly instalments and the next instalment is due on 30th June, 2022.

Loans of C634.49 crores is repayable in 10 quarterly instalments and the next instalment is due on 30th June, 2022.

Loan of C346.98 crores is repayable in 12 quarterly instalments and the next instalment is due on 30th June, 2022.

Loan of C474.54 crores is repayable in 9 quarterly instalments and the next instalment is due on 30th June, 2022.

Loans of C620.06 crores is repayable in 9 quarterly instalments and the next instalment is due on 15th Apr, 2022.

Loans of C37.51 crores has been repaid in full on 04th April 2022.

Loans of C78.20 crores is repayable in 2 quarterly instalments and the next instalment is due on 30th June, 2022.

(b) Loans of C840.91 crores (March 31, 2021 C1,352.35 crore) are secured by Pooled Security as described in Note 22(I) (a) with priority over cash flows under TRA agreement and security in case of liquidation. Loan is repayable in 20 quarterly instalments and the next instalment is due on 30th June, 2022.

(c) ''Loans of C2,108.44 crores (March 31, 2021 C2,537.23 crores) are secured through following:

(a) first pari passu charge over the immovable fixed assets (except immovable properties at Tensa mines and

immovable leasehold properties having aggregate area of 551.49 acres at Patratu, Jharkhand ) & movable fixed assets.

(b) first pari passu charge on the current assets, both present & future, of the Company.

Repayment schedule of these loans is as follows:

(i) Loans of C728.48 crores is repayable in 23 quarterly instalments and the next instalment is due on 30th June, 2022.

(ii) Loans of C459.98 crores is repayable in 22 quarterly instalments and the next instalment is due on 30th June, 2022.

(iii) Loans of C919.98 crores is repayable in 22 quarterly instalments and the next instalment is due on 30th Apr, 2022.

IV OTHER LOANS

(a) Other Loan of C Nil (March 31, 2021 C191.24 crores) was

secured by Pooled Security as described in Note 22(I)(a).

(b) Other Loans of C Nil (March 31,2021 C225 crores ) are secured

through following:

(a) first pari passu charge over the immovable fixed assets (except immovable properties at Tensa mines and immovable leasehold properties having aggregate area of 551.49 acres at Patratu, Jharkhand) & movable fixed assets

(b) first pari passu charge on the current assets, both present & future, of the Company.

V Secured Term Loan Lenders & Debenture holders mentioned in Note No 22(1) and Working Capital Lenders mentioned in Note No 26(1) are further secured by way of pledge over 4.31 crore equity shares of Jindal Steel & Power Limited held by OPJ Trading Private Limited (The Promoter Company).

VI The Company has also created Non Disposal Undertaking (NDU) over 9.13 crore equity shares of Jindal Steel & Power Limited (JSPL) held by Opelina Sustainable Services Limited (Promoter Company) in favour of State Bank of India, the Lead Bank for the benefit of all the Secured Term Loan Lenders & Debentureholders mentioned in Note No 22(1) and Working Capital Lenders mentioned in Note No 26(1).

VIII In terms of RBI Circular No. DOR.No.BP.BC. 47/21.04.048/2019-20 dated March 27, 2020 & Circular No. DOR.No.BP.BC.71/21.04.048/2019-20 dated May 23, 2020, the Company had availed moratorium for its term loan, NCD and working capital facilities. Accordingly, interest of C709.83 crore for the period March 2020 to August 2020 on the term loan facilities had been capitalised with the term loans . Also the instalment of term loan due for payment of C632.70 crore from 27th March, 2020 to 31st August, 2020 has been deferred and all the subsequent repayment schedule and due date has been shifted across the board.

It is not possible to predict the outcome of the pending litigations with accuracy, the Company believes, based on legal opinions received and / or internal assessment, that it has meritorious defences to the claims. The management believe the pending actions will not require outflow of resources embodying economic benefits and will not have a material adverse effect upon the results of the operations, cash flows or financial condition of the Company.

Others

(i) Duty saved on import of raw material under Advance License pending fulfilment of export obligation is amounting to Nil (previous year C52.43 crore). The Management is of the view that considering the past export performance and future prospects there is certainty that pending export obligation under advance licenses, will be fulfilled before expiry of the respective advance licenses.

(ii) @ During the year, the Company has remitted C 1770.72 crore (USD 241.18 million) to the lenders of Jindal Steel & Power (Mauritius) Limited (C 1752.28 crore) and Jindal Steel & Power (Australia) Limited (C18.44 crore), wholly owned subsidiary companies, against the invocation of corporate guarantees given by the Company pursuant to extension of time and waiver of conditions

(iii) The Directorate of Enforcement had passed a Provisional Attachment order to attach fixed deposits of C60,00,00,000 [to the extent of ?58,00,75,194 with interest accrued as on date of taking possession after confirmation of this order] in relation to the alleged excess mining from Gare Palma IV/1 which was granted to Jindal Steel & Power (the Company). The Company has filed a Writ Petition challenging the said Provisional Attachment order and the Hon''ble High Court of Delhi had stayed the proceedings before the Adjudicating Authority. Further the Company had paid the royalty amount as per the applicable rates, in terms of the lease agreement and had also filed returns with the authorities in time. Also the attachment is bad in law as attachment pertains to alleged unauthorized mining which is not a Scheduled Offence under the PMLA. The management believes that it has a creditable case in its favour.

42. CSREXPENSES

As per Section 135 of the Companies Act 2013, a company, meeting the applicability threshold, needs to spend at least 2% of its average net profit for the immediately preceding three financial years on corporate social responsibility (CSR) activities. The areas for CSR activities are eradication of hunger and malnutrition, promoting education, art and culture, healthcare, destitute care and rehabilitation, environment sustainability, COVID-19 relief and rural development projects. A CSR committee has been formed by the company as per the Act. The funds were primarily utilized through the year on these activities which are specified in Schedule VII of the Companies Act 2013:

44. ''EMPLOYEE BENEFITS'', IN ACCORDANCE WITH ACCOUNTING STANDARD (IND AS-19)

A. The Company has a defined benefit gratuity plan. Every employee who has completed five years or more of service gets a gratuity on departure at 15 days'' salary (last drawn salary) for each completed year of service.

B. The actuary has provided a valuation of Provident Fund Liability and based on the below assumptions Provident Fund Liability of C13.45 Crore as at 31st March, 2022 (Previous Year C6.91 Crore ).

C. The following tables summarise the components of net benefit expense recognised in the Statement of Profit and Loss and the funded status and amounts recognised in the balance sheet for the respective plans.

The above sensitivity analysis is based on a change in an assumption while holding all other assumption constant. In practice, this is unlikely to occur and changes in some of the assumptions may be correlated. When calculating the sensitivity of the defined benefit obligation to significant actuarial assumptions the same method (projected unit credit method has been applied as when calculating the defined benefit obligation recognised within the Balance Sheet.

Pursuant to the said de-allocation by the Hon''ble Supreme Court and pending the decision/s of the Ministry of Coal on the show cause notices issued by the Ministry of Coal, calling upon the Company to show cause as to why the delay in the development of the non-operational coal blocks should not be held as violation of the terms and conditions of the allocation letters of the said stated coal blocks, the respective Hon''ble High Courts have required the Company to keep the said Bank Guarantees alive pending the decision of the Government (Ministry of Coal) in individual case. The High Courts have restrained the Ministry of Coal to act in furtherance of its subsequent decision/s, to invoke the bank guarantee/s, for a further period of two weeks'' time from the date of the communication of such decision/s in order to enable the Company to challenge such decision/s of the Ministry of Coal. In the meantime, the invocation of the bank guarantees has been stayed by the Hon''ble High Courts.

The Company believes that it has good case in its favour in respect to this matter and hence no provision is considered necessary.

b) During the year, the Company has also won in the auction held, the coal blocks at Utkal C, Utkal B1 and Utkal B2 in State of Odisha; and the Gare Palma IV/6 mine in Chattisgarh State. Execution of lease deeds in respect of these mines are pending and estimated payments, as per assessment done by the management, total outlay for mines would be C963.14 crores (refer note no. 40(b)(i)).

Due to the restrictions in the type of investment that can be held by the gratuity and the pension fund regulation, it''s not possible to explicitly follow on assets-liability matching strategy to manage risk actively.

The estimate of future salary increases, considered in actuarial valuation, takes into account inflation, seniority, promotions and other relevant factors. The above information has been certified by the actuary and has been relied upon by the auditors.

45. As per IND AS 108 Operating Segment, segment information has been provided in notes to consolidated financial statements.

46. a) Pursuant to the Judgment dated 25.08.2014 read with Order dated 24.09.2014 passed by the Hon''ble Supreme Court the allocation

of the coal blocks, Gare Palma IV/1 (operational); Utkal B-1, Amarkonda Murgadangal, Gare Palma IV/6, Ramchandi, Urtan North and Jitpur (non-operational) to the Company/its joint ventures stand de-allocated. Prior to the said de-allocation by the Hon''ble Supreme Court, the Government had invoked bank guarantees provided by the Company to the extent of C155 crore with respect to Ramchandi, Amarkonda Murgadangal, Urtan north and Jitpur Coal Blocks. These matters were contested by the Company at various levels and the invocation of the said bank guarantees had been stayed by the respective Hon''ble High Courts. Bank guarantees amounting to C138.41 crore (previous year C155 crore) have been provided by the Company for the above mentioned four non- operational coal blocks.During the year Office of Coal Controller has returned the bank guarantee amounting to C16.59 crore related to the Jitpur coal block.

Notes:

i) All the above loans and advance are interest bearing.

ii) Above stated loans have not been utilised for the purpose of investments in shares of the company.

49. One of the subsidiary company Jindal Steel & Power (Mauritius) Limited (''JSPML'') is having negative net worth of C1,003.06 crores as at 31st March 2022 (C401.95 crores as at 31st March 2021) and the Company has extended unsecured loan (including interest of C647.09 crores) of C12,407.59 crores and also made investment in share capital of JSPML (C575.73 crores as at 31st March 2022). As per the audited financial statements of JSPML for the year ended 31st March 2022, it has investment in mining/ other assets mainly in South Africa, Mozambique, Australia, etc. Further, during the year, one of the subsidiary, WCL (Wollongong Coal Limited, Australia), has commenced operations. The accounts of JSPML have been prepared on going concern basis by the management of JSPML as at 31st March 2022, in view of the committed financial support from the Company, the above said investments and loans given are of long term and strategic in nature. Accordingly, these are considered good by the management..

b) Foreign Currency Exposure:-The principal component of monetary foreign currency loans/debts and payable amounting to C4,882.20 crore (31st March 2021 C2,648.26 crore) and receivables (including Loans to WOS considering amount of C647.09 crores amounting to C12,407.59 crore and excluding investment into WOS of C914.60 crore at cost price) amounting to C12,992.71 crore (31st March 2021 C5,746.69 crore) not hedged by forwards/derivative instruments.

During the year ended March 31, 2022 and March 31, 2021, there were no transfers between Level 1 and Level 2 fair value measurements, and no transfer into and out of Level 3 fair value measurements.

Fair valuation of financial guarantees

Financial guarantees issued by the company on behalf of its overseas subsidiary have been measured at fair value through profit and loss account. Fair value of said guarantees as at March 31, 2022 is Nil (March 31, 2021 C8.53 Crore) have been considered by the management on the basis of valuation carried out by an independent professional.

Fair valuation techniques

The Company maintains policies and procedures to value financial assets or financial liabilities using the best and most relevant data available. The fair values of the financial assets and liabilities are included at the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

The following methods and assumptions were used to estimate the fair values:

1) Fair value of cash and deposits, trade receivables, trade payables, and other current financial assets and liabilities approximate their carrying amounts largely due to the short-term maturities of these instruments.

Fair value hierarchy

The Company uses the following hierarchy for fair value measurement of the company''s financials assets and liabilities:

Level 1: Quoted prices/NAV (unadjusted) in active markets for identical assets and liabilities at the measurement date.

Level 2: Other techniques for which all inputs which have a significant effect on the recorded fair value are observable, either directly or indirectly.

Level 3: Techniques which use inputs that have a significant effect on the recorded fair value that are not based on observable market data.

52. FINANCIAL RISK MANAGEMENT

The Company''s principal financial liabilities, other than derivatives, comprise borrowings, trade and other payables, and financial guarantee contracts. The main purpose of these financial liabilities is to manage finances for the Company''s operations. The Company''s financial assets comprise investments, loan and other receivables, trade and other receivables, cash, and deposits that arise directly from its operations.

The Company''s activities are exposed to market risk, credit risk and liquidity risk. In order to minimise adverse effects on the financial performance of the Company, derivative financial instruments such as forward contracts are entered into to hedge foreign currency risk exposure. Derivatives are used exclusively for hedging purposes and not as trading and speculative purpose. Further, this to be read with note 50a.

I. Market risk

Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Market prices comprise three types of risk: currency rate risk, interest rate risk and other price risks, such as equity price risk and commodity risk. Financial instruments affected by market risk include loans and borrowings, deposits, investments, and derivative financial instruments.

The sensitivity analysis in the following sections relate to the position as at 31st March 2022 and 31st March 2021.

The analysis exclude the impact of movements in market variables on: the carrying values of gratuity and other postretirement obligations; provisions. The sensitivity of the relevant profit or loss item is the effect of the assumed changes in respective market risks. The Company uses derivative financial instruments such as foreign exchange forward contracts of varying maturity depending upon the underlying contract and risk management strategy to manage its exposures to foreign exchange fluctuations.

(a) Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. In order to optimize the Company''s position with regard to interest income and interest expenses and to manage the interest rate risk, the Company performs a comprehensive corporate interest rate risk management by balancing the proportion of the fixed rate and floating rate financial instruments in its total portfolio.

2) Long-term fixed-rate and variable-rate receivables / borrowings are evaluated by the Company based on parameters such as interest rates, specific country risk factors, credit risk and other risk characteristics. Fair value of variable interest rate borrowings approximates their carrying values. For fixed interest rate borrowing fair value is determined by using the discounted cash flow (DCF) method using discount rate that reflects the issuer''s borrowings rate. Risk of non-performance of the Company is considered to be insignificant in valuation.

3) The fair values of derivatives are estimated by using pricing models, where the inputs to those models are based on readily observable market parameters basis contractual terms, period to maturity, and market parameters such as interest rates, foreign exchange rates, and volatility. These models do not contain a high level of subjectivity as the valuation techniques used do not require significant judgement, and inputs thereto are readily observable from actively quoted market prices. Management has evaluated the credit and non-performance risks associated with its derivative counterparties and believe them to be insignificant and not warranting a credit adjustment.

(b) Foreign currency risk

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. The Company transacts business primarily in Indian Rupees and US dollars. The Company has obtained foreign currency loans and has foreign currency trade payables and receivables and is therefore exposed to foreign exchange risk. Certain transactions of the Company act as a natural hedge as a portion of both assets and liabilities are denominated in similar foreign currencies. For the remaining exposure to foreign exchange risk the Company adopts a policy of selective hedging based on risk perception of the management. Foreign exchange contracts are carried at fair value.

The Company hedges its exposure to fluctuations by using foreign currency forwards contracts on the basis of risk perception of the management.

II. Credit risk

Credit risk arises from the possibility that the counterparty will default on its contractual obligations resulting in financial loss to the Company. To manage this, the Company periodically assesses the financial reliability of customers, taking into account the financial conditions, current economic trends, and analysis of historical bad debts and ageing of accounts receivable.

The Company considers the probability of default upon initial recognition of assets and whether there has been a significant increase in credit risk on an ongoing basis through each reporting period. To assess whether there is significant increase in credit risk, it considers reasonable and supportive forward looking information such as:

(i) Actual or expected significant adverse changes in business.

(ii) Actual or expected significant changes in the operating results of the counterparty.

(iii) Financial or economic conditions that are expected to cause a significant change to the counterparty''s ability to meet its obligation.

(iv) Significant increase in credit risk and other financial instruments of the same counterparty.

(v) Significant changes in the value of collateral supporting the obligation or in the quality of third party guarantees or credit enhancements.

The Company makes provision against credit impairment of trade receivable based on expected credit loss (ECL) model.

III. Liquidity Risk

Liquidity risk refers to risk of financial distress or extra ordinary high financing cost arising due to shortage of liquid funds in a situation where business conditions unexpectedly deteriorate and require financing. The Company''s objective is to maintain at all times optimum levels of liquidity to meet its cash and collateral requirements. Processes and policies related to such risk are overseen by senior management and management monitors the Company''s net liquidity position through rolling forecast on the basis of expected cash flows.

(c) Commodity Price Risk

Commodity Price Risk is the risk that future cash flow of the Company will fluctuate on account of changes in market price of key raw materials.

The Company is exposed to the movement in price of key raw materials in domestic and international markets. The Company has in place policies to manage exposure to fluctuations in the prices of the key raw materials used in operations. The Company enters into contracts for procurement of materials, most of the transactions are short term fixed price contract and a few transactions are long term fixed price contracts.

53. CAPITAL RISK MANAGEMENT

The Company manages its capital structures and makes adjustment in light of changes in economic conditions and requirements of financing covenants. To this end the Company may adjust the dividend payment to shareholders, return capital to shareholders or issue new shares.

The primary objective of the Company''s Capital Management is to maximize the shareholder value by maintaining an efficient capital structure and healthy ratios and safeguard Company''s ability to continue as a going concern. The Company also works towards maintaining optimal capital structure to reduce the cost of capital. No changes were made in the objectives,policies, process during the year ended 31st March, 2022.

55. IMPAIRMENT REVIEW

Assets are tested for impairment whenever there are any internal or external indicators of impairment.

Impairment test is performed at the level of each Cash Generating Unit (''CGU'') or groups of CGUs within the Company at which the goodwill or other assets are monitored for internal management purposes, within an operating segment.

The impairment assessment is based on higher of value in use and value from sale calculations.

During the year, the testing did not result in any impairment in the carrying amount of assets except as disclosed in exceptional item (Refer Note 57).

The measurement of the cash generating units'' value in use is determined based on financial plans that have been used by management for internal purposes. The planning horizon reflects the assumptions for short to- mid term market conditions.

Key assumptions used in value-in-use calculations:

- Operating margins (Earnings before interest and taxes)

- Discount Rate

- Growth Rates

- Capital expenditures

Operating margins: Operating margins have been estimated based on past experience after considering incremental revenue arising out of adoption of valued added and data services from the existing and new customers, though these benefits are partially offset by decline in tariffs in a hyper competitive scenario. Margins will be positively impacted from the efficiencies and initiatives driven by the Company; at the same time, factors like higher churn, increased cost of operations may impact the margins negatively.

Discount rate: Discount rate reflects the current market assessment of the risks specific to a CGU or group of CGUs. The discount rate is estimated based on the weighted average cost of capital for respective CGU or group of CGUs.

Growth rates: The growth rates used are in line with the long term average growth rates of the respective industry and country in which the Company operates and are consistent with the forecasts included in the industry reports.

Capital expenditures: The cash flow forecasts of capital expenditure are based on past experience coupled with additional capital expenditure required.

57 (a) Exceptional Items includes

In standalone financial statements ''Exceptional items'' for the year ended 31st March 2022 of C323.71 crores,(Previous Year C171.81 Crore) represents write off of:

(i) investment in mining assets of C87.76 crores(previous year C171.81 Crores - refer note no.57(b) below);

(ii) Property, Plant & equipment (including assets held for sale) and Capital work-in-progress of C104.56 crores;

(iii) Relinquishment charges for surrender of the long term agreement of power transmission C31.88 crores;

(iv) Water charges demand for earlier years C99.51 crores

57 (b) During the year 2014-15, Hon''ble Supreme Court of India

had cancelled number of coal blocks in India including

allocated to the Company by the Ministry of Coal, Government of India. During the previous year ended 31st March 2021, the Company had made necessary provision against its investment in mining assets in respect of above cancelled mines of C171.81 crore (Exceptional Item). The Company''s claim for its investment in mining assets which was filed with Ministry of Coal in earlier years is still pending for settlement and C22.72 crore received in earlier year has been accounted for as an advance.

58. The Company has filed legal suits /notices or in the process of filing legal case /sending legal notices / making efforts for recovery of debit balances of C178.68 Crore (P.Y. 2020-21 C212.38 crore) plus interest, wherever applicable,which are being carried as long term /short term advances, trade receivables and other recoverable. Pending outcome of legal proceedings/Company ''s efforts for recovery and based on legal advise in certain cases , the Company has considered aforesaid amounts as fully recoverable. Hence, no provision has been made in respect of these balances.

59. a) The shareholders of the Company had approved the sale

of Company''s entire 96.42% stake in equity capital and preference investment (390,17,25,000 nos. of 5% Cumulative, Non-convertible RPS and 290,12,82,692 nos. of 5% Noncumulative Non-convertible RPS of face value of C10/- each) in Jindal Power Limited (''JPL'' or ''Target Company'') for a total consideration of C7,401.29 crores. Out of which (i) C 3,015 crores payable in cash; and (ii) the balance C4,386.29 crores, by way of assumption and takeover of liabilities of inter-corporate deposits and capital advances of C1,532.29 crores and C2,854 crores respectively extended by JPL to the Company .

b) The above proposed sale is subject to necessary regulatory and other approvals/ consents/ permissions as may be necessary, accordingly, above investments are treated as held for sale as at 31st March 2022.

c) Subsequent to the balance sheet date, the Company has realised full balance cash consideration of C3,005 crores and transaction concluded.

61. The Company (JSP) has acquired Kasia Iron Ore and Dolomite Block, Keonjhar, Odisha in the Auction held by the Government of Odisha. The Company has executed the lease deed with Government of Odisha in November 2021 and has also started mining operations at the above stated block during the quarter. The Company has incurred an amount of C870.92 crores (including upfront premium payment) towards acquisition cost.

62. During the earlier year , the Board of Directors of the Company had approved the sale of certain captive power plants (CPP) to Jindal Power Limited (JPL) subsidiary company situated at Angul, Odisha (6 X 135 MW) and at Raigarh, Chhattisgarh (2 X 55 MW) aggregating to 920 MW at a fair market value determined by independent valuer appointed by the Board of Directors amounting to C5,275 crore; which is subject to necessary approvals to be arranged by the company. The company had received advance against above of C2,854 crore (previous year C2,854 crore) (to be read with note no 59) and pending final sales has provided Interest for on stated advance.

63. Impact of COVID-19:- In March 2020, the WHO declared COVID-19 outbreak as a pandemic. The Company has assessed the possible impact of COVID-19 on its standalone financial statements based on the internal and external information available and concluded that no adjustment is required in these financial statements. However, subsequent to the Balance Sheet date, the Second wave of COVID again continues to spread across the country. The management has considered the future cash flows, current expansion and future plans, evaluated the operations of the Company, order booking and revenue, assets and liabilities and factored in the impact of it up to the date of approval of these financial statements on the carrying value of its assets and liabilities and no major change in the financial performance of the Company on long term basis. The impact of this pandemic may be different from that estimated as at the date of approval of these standalone financial statements and the Company will continue to closely monitor any material changes to future economic conditions.

64. The Code on Social Security, 2020 (''Code'') has been notified in the Official Gazette in September 2020 which could impact the contribution by the Company towards certain employment benefits. The effective date from which the changes and rules would become applicable is yet to be notified. Impact of the changes will be assessed and accounted in the relevant period of notification of relevant provisions.

65. Balances of certain advances,creditors (including MSME) and receivables are in process of confirmation/reconciliation. Management believe that on reconciliation/ confirmation there will not be any material impact on statement of financial statements.

66. INFORMATION RELATED TO CONSOLIDATED FINANCIAL

The company is listed on stock exchange in India, the Company has prepared consolidated financial as required under IND AS 110, Sections 129 of Companies Act, 2013 and listing requirements. The consolidated financial statement is available on company''s web site for public use.

67. OTHER STATUTORY INFORMATION

a) The Company does not have any benami property, where any proceeding has been initiated or pending against the Company for holding any benami property.

b) The Company has not traded or invested in Crypto currency or Virtual currency during the financial year.

c) The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (intermediaries) with the understanding that the intermediary shall:

(i) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company (ultimate beneficiaries) or

(ii) provide any guarantee, security or the like on behalf of the ultimate beneficiaries.

d) The Company has not received any fund from any person(s) or entity(ies), including foreign entities (funding party) with the

understanding (whether recorded in writing or otherwise) that the Company shall:

(i) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the funding party (ultimate beneficiaries) or

(ii) provide any guarantee, security or the like on behalf of the ultimate beneficiaries.

e) The Company does not have any such transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961).

f) The Company has complied with the number of layers prescribed under clause (87) of section 2 of the Act read with the Companies (Restriction on number of Layers) Rules, 2017

g) The Company is not declared wilful defaulter by and bank or financial institution or lender during the year.

h) The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.

i) Quarterly returns or statements of current assets filed by the Company with banks or financial institutions are in agreement with the books of accounts.

j) The Company has used the borrowings from banks and financial institutions for the specific purpose for which it was obtained.

k) The title deeds of all the immovable properties, (other than immovable properties where the Company as the lessee and the lease agreements are duly executed in favour of the Company) disclosed in the financial statements included in property, plant and equipment and capital work-in progress are held in the name of the Company as at the balance sheet date except as stated in footnote no 2 of note no.5.

l) The Company does not have any transactions with companies which are struck off.

69. Previous year figures have been regrouped/ rearranged/recast,wherever considered necessary to conform to current year''s classification. Figures less than 50000 have been shown as absolute number.

70. Notes 1 to 70 are annexed to and form an integral part of financial statements.



Mar 31, 2021

Terms/rights attached to equity shares

The Company has only one class of equity shares having par value of '' 1 per share. Each holder of equity share is entitled to one vote per share. The Company declares dividend in Indian Rupees. The dividend, if any, proposed by the Board of Directors is subject to approval of the Shareholders in the ensuing Annual General Meeting.

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company after payment of all liabilities. The distribution will be in proportion to the number of equity shares held by the shareholders.

Aggregate number of bonus shares issued, shares issued for consideration other than cash and shares bought back during the period of five years immediately preceding the reporting date:

In accordance with Section 68 of the Companies Act, 2013 and buy back regulations of SEBI, the Company has not buy back any equity shares during the five years immediately preceding 31st March, 2021.

During the five years immediately preceding 31st March, 2021, the Company has not allotted any equity shares as bonus shares and also not issued any share for consideration other than cash.

In addition the Company allotted 41,90,026 equity shares during the preceding five years under its various Employees Stock Option Schemes / Employee Stock Purchase Scheme.

Employees Stock purchase Scheme

The Board of Directors in its meeting held on 25th January, 2018 approved the JSPL Employee Stock Purchase Scheme 2018 (JSPL ESPS Scheme-2018) and the same was approved by the shareholders in the Annual General Meeting held on 28th September 2018, in accordance with SEBI (Share Based Employee Benefits) Regulations 2014. In accordance with SEBI (Share Based Employees Benefits) Regulations 2014 and pursuant to Jindal Steel & Power Limited Employee Stock Purchase Scheme-2018, the Company has on 23rd March 2019 and on 27th April 2019 granted 20,32,007 nos. and 20,56,704 nos. equity shares of '' 1 each at an exercise price of '' 166.65/- per share and '' 175.15/- per share respectively under Jindal Steel & Power Limited Employee Stock Purchase Scheme- 2018 to the employees of the Group (Jindal Steel & Power Limited and its subsidiaries). Subsequently the Company allotted 20,15,597 Equity shares of ''1/- each on May 13, 2019 (out of options granted on 23rd March, 2019) to the eligible employees and allotted 20,53,995 Equity shares of ''1/- each on July 06, 2019 (7,677 shares out of options granted on 23rd March, 2019 and 20,46,318 shares out of options granted on 27th April, 2019) to the eligible employees.

Employees Stock Option Scheme

The Board of Directors in its meeting held on 8th August, 2017 approved the JSPL Employee Stock Option Plan 2017 (JSPL ESOP Scheme-2017) and the same was approved by the shareholders in the Annual General Meeting held on 22nd September 2017, in accordance with SEBI(Share Based Employee Benefits) Regulations 2014.

Pursuant to the JSPL ESOP Scheme-2017 the Company may grant upto 4,50,00,000 options convertible into equal number of equity shares of '' 1 each.

The Nomination and Remuneration Committee of the Board in its meeting held on 5th January, 2018 granted 51,21,735 options convertible into equal number of equity shares of the Company, to the eligible employees of the Company and its subsidiaries, at an exercise price of '' 244.55 per option. As per JSPL ESOP Scheme-2017 the vesting period shall not be less than one year and maximum period will be three years. The employee shall exercise his options within a period of six months from respective vesting. 50,45,222 options have been surrendered/lapsed and balance outstanding is 76,513 options as on 31st March, 2021.

(i) Securities Premium Reserve represents the amount received in excess of par value of securities issued by the Company. This reserve is utilised/to be utilised in accordance with provisions of the act.

(ii) The Company is required to create Debenture Redemption Reserve out of the profits which is available for the purpose of redemption of debentures.

(iii) Capital Redemption Reserve represents the statutory reserve created on buy back of shares. It is not available for distribution.

(iv) During the previous year the Company has allotted 4,80,00,000 nos. fully paid up equity shares of '' 1/- each at issue price of '' 140.31 per share (including premium of '' 139.31 per share), on exercise of option (against equal number of warrant held), to a promoter group company on receipt of balance 75% amount of '' 505.12 crores. Money received have been fully utilized for the purpose the issue was made.

(v) Share Option Outstanding Account relate to stock option granted by the Company to employee under JSPL employee stock option plan, 2017 of '' 0.22 crore (31st March-20''0.32 crore). This reserve is transferred to retained earning on cancellation of vested option. (Refer note 20(f)).

(vi) Other Comprehensive income reserve represents the balance in equity for items to be accounted in classified into i) Items that will not be reclassified to profit & loss ii) Items that will be reclassified to profit & loss (read with note 62).

I. Pooled Security

The Company has entered into a pooling agreement with all the Secured Lenders and Security Trustee on 26th February''2020, whereby the following security structure was agreed upon in terms of sanctioned facilities:

a) first pari passu charge over the immovable fixed assets (except immovable properties at Tensa mines and immovable leasehold properties having aggregate area of 551.49 acres at Patratu, Jharkhand) & movable fixed assets (Bank of Baroda has exclusive charge on movable fixed assets of 4.5 MTPA Pellet Plant- II situated at Barbil, Odisha upto 125% of '' 81.95 crores Bank Guarantee facility. Other lenders will have pari passu charge on these assets which will be subservient to the charge of Bank of Baroda) and second pari passu charge on the current assets, both present & future, of the Company in favour of the Term Loan Lenders; and

b) second pari passu charge over the immovable fixed assets (except immovable properties at Tensa mines and immovable leasehold land admeasuring 551.49 acres at Patratu, Jharkhand) & movable fixed assets (Bank of Baroda has exclusive charge on movable fixed assets of 4.5 MTPA Pellet Plant- II situated at Barbil, Odisha upto 125% of ? 81.95 crores Bank Guarantee facility. Other lenders will have pari passu charge on these assets which will be subservient to the charge of Bank of Baroda) and first pari passu charge on the current assets, both present & future, of the Company in favour of the Working Capital Lenders.

The above security constitutes as "Pooled Security"

II. Debentures

Security

a) Debentures of? Nil (March 31,2020 ? 500 crore) were placed

initially with Life Insurance Corporation of India on private placement basis.

b) Debentures of ? Nil (March 31,2020 ? 160 crore) were placed initially with Life Insurance Corporation of India on private placement basis.

c) Balance amount of debentures of ? 12.40 Crore (March 31, 2020 ? 24.80 crore) placed initially with SBI Life Insurance Company Limited on private placement basis is redeemable at par on 29 December 2021.

Above debentures are secured by Pooled Security as described in Note 22(I)(a).

III. Term Loans from Banks

a) Loans of? 11, 295.03 crores (March 31,2020 ? 11,463.30 crore) are secured by Pooled Security as described in Note 22(I)(a). Repayment schedule of these loans is as follows:

Loan of '' 999.60 crores is repayable in 62 quarterly instalments and the next instalment is due on 30th June, 2021.

Loans of '' 5,810.45 crores is repayable in 61 quarterly instalments and the next instalment is due on 30th June, 2021.

Loans of? 1,250.89 crores is repayable in 17 quarterly instalments and the next instalment is due on 30th June, 2021.

Loans of ? 851.30 crores is repayable in 14 quarterly instalments and the next instalment is due on 30th June, 2021.

Loan of ? 465.50 crores is repayable in 16 quarterly instalments and the next instalment is due on 30th June, 2021.

Loan of ? 686.92 crores is repayable in 13 quarterly instalments and the next instalment is due on 30th June, 2021.

Loans of '' 735.67 crores is repayable in 13 quarterly instalments and the next instalment is due on 15th April, 2021.

Loans of '' 93.76 crores is repayable in 6 quarterly instalments and the next instalment is due on 27th June, 2021.

Loans of '' 277.36 crores is repayable in 6 quarterly instalments and the next instalment is due on 30th June, 2021.

Loans of '' 123.58 crores is repayable in 2 quarterly instalments and the next instalment is due on 30th June, 2021.

b) Loans of'' 1,352.35 crores (March 31, 2020''1,315.63 crore) are secured by Pooled Security as described in Note 22(I) (a) with priority over cash flows under TRA agreement and security in case of liquidation. Loan is repayable in 30 quarterly instalments and the next instalment is due on 30th June, 2021.

c) Loans of'' 2,537.23 crores (March 31, 2020 '' Nil ) are secured through following:

(a) first pari passu charge over the immovable fixed assets (except immovable properties at Tensa mines and immovable leasehold properties having aggregate area of 551.49 acres at Patratu, Jharkhand) & movable fixed assets (Bank of Baroda has exclusive charge on movable fixed assets of 4.5 MTPA Pellet Plant- II situated at Barbil, Odisha upto 125% of '' 81.95 crores Bank Guarantee facility. Lenders will have pari passu charge on these assets which will be subservient to the charge of Bank of Baroda)

(b) first pari passu charge on the current assets, both present & future, of the Company.

Repayment schedule of these loans is as follows:

(i) Loans of '' 300.00 crores is repayable in 28 quarterly instalments and the next instalment is due on 30th June, 2021.

(ii) Loans of '' 767.25 crores is repayable in 27 quarterly instalments and the next instalment is due on 30th June, 2021.

(iii) Loans of '' 489.99 crores is repayable in 26 quarterly instalments and the next instalment is due on 30th June, 2021.

(iv) Loans of '' 979.99 crores is repayable in 26 quarterly instalments and the next instalment is due on 30th April 2021 *

*The company has further provided security by way of pledge over 40,46,40,000 nos. and Non Disposal Undertaking ("NDU") over 6,74,40,000 nos. of equity shares of Jindal Power Limited (subsidiary) ("JPL") held by the Company as an interim security till the completion of full tie up of corporate loan of ''2800 crores in favour of SBICAP Trustee Company Limited for the benefit of State Bank of India in respect of corporate loan of '' 979.99 crores outstanding as on 31st March 2021. The company has complied with the necessary compliances to release the above mentioned interim security and charge satisfaction is in process.

IV. Other Loans

a) Other Loan of '' 191.24 crores (March 31, 2020 '' 185.00 crores) is secured by Pooled Security as described in Note 22(I)(a). Loan is repayable in 61 quarterly instalments and the next instalment is due on 30th June, 2021.

b) Other Loans of '' 225 crores (March 31, 2020 '' Nil ) are secured through following:

(a) first pari passu charge over the immovable fixed assets (except immovable properties at Tensa mines and immovable leasehold properties having aggregate area of 551.49 acres at Patratu, Jharkhand) & movable fixed assets (Bank of Baroda has exclusive charge on movable fixed assets of 4.5 MTPA Pellet Plant- II situated at Barbil, Odisha upto 125% of '' 81.95 crores Bank Guarantee facility. Lenders will have pari passu charge on these assets which will be subservient to the charge of Bank of Baroda)

(b) first pari passu charge on the current assets, both present & future, of the Company.

I t is repayable in 28 quarterly instalments and the next instalment is due on 31st May, 2021.

V. Secured Term Loan Lenders & Debenture holders mentioned in Note No. 22(1) and Working Capital Lenders mentioned in Note No. 26(1) are further secured by way of pledge over 4.31 crore equity shares of Jindal Steel & Power Limited held by OPJ Trading Private Limited (The Promoter Company).

VI. The Company has also created Non Disposal Undertaking (NDU) over 9.13 crore equity shares of Jindal Steel & Power Limited (JSPL) held by Opelina Sustainable Services Limited (Promoter Company) in favour of State Bank of India, the Lead Bank for the benefit of all the Secured Term Loan Lenders & Debentureholders mentioned in Note No. 22(1) and Working Capital Lenders mentioned in Note No. 26(1).

VIII. I n terms of RBI Circular No. DOR.No.BP.BC. 47/21.04.048/2019-20 dated March 27, 2020 & Circular No. DOR.No.BP.BC.71/21.04.048/2019-20 dated May 23, 2020, the Company has availed moratorium for its term loan, NCD and working capital facilities. Accordingly, interest of ''709.83 Crores for the period March 2020 to August 2020 on the term loan facilities has been capitalised with the term loans .Also the instalment of term loan due for payment of ''632.70 Crores from 27th March, 2020 to 31st August, 2020 has been deferred and all the subsequent repayment schedule and due date has been shifted across the board.

Others

It is not possible to predict the outcome of the pending litigations with accuracy, the Company believes, based on legal opinions received and/or internal assessment, that it has meritorious defences to the claims. The management believe the pending actions will not require outflow of resources embodying economic benefits and will not have a material adverse effect upon the results of the operations, cash flows or financial condition of the Company.

Duty saved on import of raw material under Advance License pending fulfilment of export obligation is amounting to '' 52.43 crore (Previous year '' 65.08 crore). The Management is of the view that considering

the past export performance and future prospects there is certainty that pending export obligation under advance licenses, will be fulfilled before expiry of the respective advance licenses.

* also refer note 46

** excluding corporate guarantee amount which is pending for execution/ RBI approval.

@Subsequent to the Balance Sheet date, the Company has remitted '' 1770.72 crore (USD 241.18 million) to the lenders of Jindal Steel & Power (Mauritius) Limited (''1752.28 crore) and Jindal Steel & Power (Australia) Limited (''18.44 crore) against the invocation of corporate guarantees given by the Company pursuant to extension of time and waiver of conditions.

44. ''EMPLOYEE BENEFITS'', IN ACCORDANCE WITH ACCOUNTING STANDARD (IND AS-19)

A. The Company has a defined benefit gratuity plan. Every employee who has completed five years or more of service gets a gratuity on departure at 15 days'' salary (last drawn salary) for each completed year of service.

B. The actuary has provided a valuation of Provident Fund Liability and based on the below assumptions Provident Fund Liability of '' 6.91 Crore as at 31st March, 2021 (Previous Year '' 4.55 Crore ).

C. The following tables summarise the components of net benefit expense recognised in the Statement of Profit and Loss and the funded status and amounts recognised in the balance sheet for the respective plans.

The estimate of future salary increases, considered in actuarial valuation, takes into account inflation, seniority, promotions and other relevant factors. The above information has been certified by the actuary and has been relied upon by the auditors.

45. As per IND AS 108 Operating Segment, segment information has been provided in notes to consolidated financial statements.

46. Pursuant to the Judgment dated 25.08.2014 read with Order dated 24.09.2014 passed by the Hon''ble Supreme Court the allocation of the coal blocks, Gare Palma IV/1 (operational); Utkal B-1, Amarkonda Murgadangal, Gare Palma IV/6, Ramchandi, Urtan North and Jitpur (non-operational) to the Company/its joint ventures stand de-allocated. Prior to the said de-allocation by the Hon''ble Supreme Court, the Government had invoked bank guarantees provided by the Company to the extent of '' 155 crore with respect to Ramchandi, Amarkonda Murhadangal, Urtan north and Jitpur Coal Blocks. These matters were contested by the Company at various levels and the invocation of the said bank guarantees had been stayed by the respective Hon''ble High Courts. Bank guarantees amounting to '' 155.00 crore (Previous year '' 155 crore) have been provided by

the Company for the above mentioned four non- operational coal blocks.

Pursuant to the said de-allocation by the Hon''ble Supreme Court and pending the decision/s of the Ministry of Coal on the show cause notices issued by the Ministry of Coal calling upon the Company to show cause as to why the delay in the development of the nonoperational coal blocks should not be held as violation of the terms and conditions of the allocation letters of the said coal blocks, the respective Hon''ble High Courts have required the Company to keep the said Bank Guarantees alive pending the decision of the Government (Ministry of Coal) in individual case. The High Courts have restrained the Ministry of Coal to act in furtherance of its subsequent decision/s, to invoke the bank guarantee/s, for a further period of two weeks'' time from the date of the communication of such decision/s in order to enable the Company to challenge such decision/s of the Ministry of Coal. In the meantime, the invocation of the bank guarantees has been stayed by the Hon''ble High Courts.

The Company believes that it has good case in respect to this matter and hence no provision is considered necessary.

49. One of the subsidiary Company Jindal Steel & Power (Mauritius) Limited (''JSPML'') is having negative net worth of '' 401.95 crore as at 31st March 2021 ('' 1,710.16 crore as at 31st March 2020) and has significant direct and indirect investments in companies. As per audited financial statements of JSPML for the year ended 31st March 2021, it has investment in mining and other assets in various overseas investments mainly in Australia, South Africa, Mozambique, etc. During the year coal mines in South Africa and Mozambique are operating on EBITDA positive basis and the subsidiary M/s Wollongong Coal Limited in Australia, has now received approval to start mining. As stated above and committed financial support from JSPL (the Holding Company) to meet its financial obligation as and when due, the management of JSPML has prepared the accounts on going concern basis. Also, in the opinion of the management of the Company (JSPL), the outstanding unsecured loan (including interest) from the Company to JSPML of '' 4,423.20 crore and investment in JSPML of '' 575.73 crore, are good and these are fully recoverable/ realisable.

b) Foreign Currency Exposure:-The principal component of monetary foreign currency loans/debts and payable amounting to '' 2,648.26 crore (March 2020''2,529.32 crore) and receivables (including Loans to WOS amounting to '' 4423.2 crore) amounting to ''5,746.69 crore (March 2020 ''2,746.53 crore). The net amount of monetary foreign currency loans/debts and payable is '' 2,648.26 crores (March 2020 '' 1,703.71 crore net of forward contract import of '' NIL (March 2020''825.61 crores).

During the year ended March 31, 2021 and March 31, 2020, there were no transfers between Level 1 and Level 2 fair value measurements, and no transfer into and out of Level 3 fair value measurements.

Fair valuation of financial guarantees

Financial guarantees issued by the Company on behalf of its overseas subsidiaries have been measured at fair value through profit and loss account. Fair value of said guarantees as at March 31, 2021 is '' 8.53 Crore (March 31, 2020 NIL) have been considered as estimated by the management and an independent professional.

Fair valuation techniques

The Company maintains policies and procedures to value financial assets or financial liabilities using the best and most relevant data available. The fair values of the financial assets and liabilities are included at the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

The following methods and assumptions were used to estimate the fair values:

1. Fair value of cash and deposits, trade receivables, trade payables, and other current financial assets and liabilities approximate their carrying amounts largely due to the short-term maturities of these instruments.

2. Long-term fixed-rate and variable-rate receivables / borrowings are evaluated by the Company based on parameters such as interest rates, specific country risk factors, credit risk and other risk characteristics. Fair value of variable interest rate borrowings approximates their carrying values. For fixed interest rate borrowing fair value is determined by using the discounted cash

flow (DCF) method using discount rate that reflects the issuer''s borrowings rate. Risk of non-performance of the Company is considered to be insignificant in valuation.

3. The fair values of derivatives are estimated by using pricing models, where the inputs to those models are based on readily observable market parameters basis contractual terms, period to maturity, and market parameters such as interest rates, foreign exchange rates, and volatility. These models do not contain a high level of subjectivity as the valuation techniques used do not require significant judgement, and inputs thereto are readily observable from actively quoted market prices. Management has evaluated the credit and non-performance risks associated with its derivative counterparties and believe them to be insignificant and not warranting a credit adjustment.

52. FINANCIAL RISK MANAGEMENT

The Company''s principal financial liabilities, other than derivatives, comprise borrowings, trade and other payables, and financial guarantee contracts. The main purpose of these financial liabilities is to manage finances for the Company''s operations. The Company''s financial assets comprise investments, loan and other receivables, trade and other receivables, cash, and deposits that arise directly from its operations.

The Company''s activities are exposed to market risk, credit risk and liquidity risk. In order to minimise adverse effects on the financial performance of the Company, derivative financial instruments such as forward contracts are entered into to hedge foreign currency risk exposure. Derivatives are used exclusively for hedging purposes and not as trading and speculative purpose. Further, this to be read with Note 50a.

I. Market risk

Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Market prices comprise three types of risk: currency rate risk, interest rate risk and other price risks, such as equity price risk and commodity risk. Financial instruments affected by market risk include loans and borrowings, deposits, investments, and derivative financial instruments.

The sensitivity analysis in the following sections relate to the position as at 31st March 2021 and 31st March 2020.

The analysis exclude the impact of movements in market variables on: the carrying values of gratuity and other postretirement obligations; provisions. The sensitivity of the relevant profit or loss item is the effect of the assumed changes in

respective market risks. The Company uses derivative financial instruments such as foreign exchange forward contracts of varying maturity depending upon the underlying contract and risk management strategy to manage its exposures to foreign exchange fluctuations.

(a) Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. In order to optimize the Company''s position with regard to interest income and interest expenses and to manage the interest rate risk, the Company performs a comprehensive corporate interest rate risk management by balancing the proportion of the fixed rate and floating rate financial instruments in its total portfolio.

(b) Foreign currency risk

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. The Company transacts business primarily in Indian Rupees and US dollars. The Company has obtained foreign currency loans and has foreign currency trade payables and receivables and is therefore exposed to foreign exchange risk. Certain transactions of the Company act as a natural hedge as a portion of both assets and liabilities are denominated in similar foreign currencies. For the remaining exposure to foreign exchange risk the Company adopts a policy of selective hedging based on risk perception of the management. Foreign exchange contracts are carried at fair value.

The Company hedges its exposure to fluctuations by using foreign currency forwards contracts on the basis of risk perception of the management.

The assumed movement in exchange rate sensitivity analysis is based on the currently observable market environment by the management.

(c) Commodity Price Risk

Commodity Price Risk is the risk that future cash flow of the Company will fluctuate on account of changes in market price of key raw materials.

The Company is exposed to the movement in price of key raw materials in domestic and international markets. The Company has in place policies to manage exposure to fluctuations in the prices of the key raw materials used in operations. The Company enters into contracts for procurement of materials, most of the transactions are short term fixed price contract and a few transactions are long term fixed price contracts.

II. Credit risk

Credit risk arises from the possibility that the counterparty will default on its contractual obligations resulting in financial loss to the Company. To manage this, the Company periodically assesses the financial reliability of customers, taking into account the financial conditions, current economic trends, and analysis of historical bad debts and ageing of accounts receivable.

The Company considers the probability of default upon initial recognition of assets and whether there has been a significant increase in credit risk on an ongoing basis through each reporting period. To assess whether there is significant increase in credit risk, it considers reasonable and supportive forward looking information such as

(i) Actual or expected significant adverse changes in business.

(ii) Actual or expected significant changes in the operating results of the counterparty.

(iii) Financial or economic conditions that are expected to cause a significant change to the counterparty''s ability to meet its obligation.

(iv) Significant increase in credit risk and other financial instruments of the same counterparty.

(v) Significant changes in the value of collateral supporting the obligation or in the quality of third party guarantees or credit enhancements.

The Company makes provision against credit impairment of trade receivable based on expected credit loss (ECL) model.

The ageing analysis of the trade receivables (gross) has been considered from the date the invoice falls due:

III. Liquidity Risk

Liquidity risk refers to risk of financial distress or extra ordinary high financing cost arising due to shortage of liquid funds in a situation where business conditions unexpectedly deteriorate and require financing. The Company''s objective is to maintain at

all times optimum levels of liquidity to meet its cash and collateral requirements. Processes and policies related to such risk are overseen by senior management and management monitors the Company''s net liquidity position through rolling forecast on the basis of expected cash flows.

(a) Managerial remuneration excludes provision for gratuity and compensated absences, since these are provided on the basis of an actuarial valuation for the Company as a whole.

(b) Managerial Remuneration paid/ provided (to director) of '' 26.09 crore is subject to the approval of members by special resolution.

55. The Hon''ble Supreme Court of India allowed the Company to lift and transport its legally procured, royalty and taxes paid stock of iron ore lump/fines vide order dated 30.01.2020 in CA No. 850 of 2020. This Stock of work in progress (note 12) includes stock of Iron Ore/Fines Nil (Previous year 11.11 Million MT) lying with a third party amounting to Nil ( Previous year '' 133.61 Crore). The estimated realisable value of such stock is Nil (Previous Years '' 1,950.15 Crore) as per Management, on the basis of valuation report of an independent Valuer. The management has lifted entire stock during financial year 2020-21.

56. IMPAIRMENT REVIEW

Assets are tested for impairment whenever there are any internal or external indicators of impairment.

Impairment test is performed at the level of each Cash Generating Unit (''CGU'') or groups of CGUs within the Company at which the goodwill or other assets are monitored for internal management purposes, within an operating segment.

The impairment assessment is based on higher of value in use and value from sale calculations.

During the year, the testing did not result in any impairment in the carrying amount of assets except as disclosed in exceptional item(Refer Note 65).

The measurement of the cash generating units'' value in use is determined based on financial plans that have been used by management for internal purposes. The planning horizon reflects the assumptions for short to- mid term market conditions.

Operating margins: Operating margins have been estimated based on past experience after considering incremental revenue arising out of adoption of valued added and data services from the existing and new customers, though these benefits are partially offset by decline in tariffs in a hyper competitive scenario. Margins will be positively impacted from the efficiencies and initiatives driven by the Company; at the same time, factors like higher churn, increased cost of operations may impact the margins negatively.

Discount rate: Discount rate reflects the current market assessment of the risks specific to a CGU or group of CGUs. The discount rate is estimated based on the weighted average cost of capital for respective CGU or group of CGUs.

Growth rates: The growth rates used are in line with the long term average growth rates of the respective industry and country in which the Company operates and are consistent with the forecasts included in the industry reports.

Capital expenditures: The cash flow forecasts of capital expenditure are based on past experience coupled with additional capital expenditure required.

57. ASSETS HELD FOR SALE

The Company has identified certain assets for disposal. The management is in discussions with potential buyers. Based on preliminary discussions with potential buyers/ external valuation, the carrying value of these assets has been considered as fair value:-

The management is confident about the recoverable value of the assets stated above.

58. During the year 2014-15, Hon''ble Supreme Court of India had cancelled number of coal blocks in India including allocated to the Company by the Ministry of Coal, Government of India. During the year ended 31st March 2021, the Company has made necessary provision against its investment in mining assets in respect of above cancelled mines of '' 171.81 crore (Exceptional Item). However, in earlier years, the Company has filed claim for its investment in mining assets with Ministry of Coal. In respect of above claim, the Company has received '' 22.72 crore towards the same. Pending for final settlement of the aforesaid claim, this amount received has been accounted for as an advance.

59. The Company has filed legal suits /notices or in the process of filing legal case /sending legal notices / making efforts for recovery of debit balances of '' 212.38 Crore (Previous year 2019-20''236.36 crore) plus interest, wherever applicable,which are being carried as long term /short term advances, trade receivables and other recoverable. Pending outcome of legal proceedings/Company ''s efforts for recovery and based on legal advise in certain cases , the Company has considered aforesaid amounts as fully recoverable. Hence, no provision has been made in respect of these balances.

60. Subsequent to the Balance Sheet date, the Board of Directors of the Company, at its meeting held on April 26, 2021, approved the divestment by way of sale, by the Company of up to its entire equity interest in Jindal Power Limited (JPL) (representing 96.42% of paid-up equity share capital of JPL) to Worldone Private Limited, a promoter group company, for a total consideration of '' 3,015 crore against carrying cost of equity investment of '' 867.05 crore. The proposed sale is subject to necessary approvals of the shareholders of the Company, regulatory approvals, approvals of lenders of the Company and JPL, contractual approvals and such other approvals,

consents, permissions and sanctions as may be necessary in line with extant relevant guidelines.

61. The agreement for divestment of 1,000 MW Power unit of Jindal Power Limited (a subsidiary of the Company (JPL)), located in Chhattisgarh into a separate purpose vehicle (SPV), for the purpose of transferring the same to JSW Energy Limited through sale of the entire share capital and other securities of the aforesaid entity in terms of the share purchase agreement for an enterprise value of '' 6,500 Crore plus the value of Net Current Assets was terminated on 30th June 2019 mutually by all parties to the agreement. Accordingly, the Advance received of '' 331.13 crore has become payable to JSW Energy Limited and the amount outstanding as on 31st March 2021 is Nil (Previous Year '' 261.13 crore).

62. During the financial year 2020-21 subsidiary Jindal Power Limited (JPL) has allotted to the Company (JSPL) fully paid up Redeemable Preference Shares (RPS) of '' 6,803.01 crore (Redeemable in maximum 20 years) as Bonus Shares by way of capitalization of retained earnings (390,17,25,000 nos. of 5% Cumulative, NonConvertible RPS of face value of '' 10/- each and 290,12,82,692 nos. of 5% Non-cumulative, Non-convertible RPS), impact of above has been accounted for as per the IND AS 109 and accordingly '' 2,315.05 crore and '' 648.87 crore has been credited to Other Comprehensive Income and Other Income respectively (Deferred Tax '' 529 crore and '' 148.46 crore respectively).

63. The company has paid advance to one of the vendor against purchase of Raw Material, who has been allowed to operate it''s mine by virtue of order dated 15.01.2020 passed by the Hon''ble Supreme Court of India in W.P(C) 114 of 2014. The company has now started lifting raw material from the vendor and advance has started adjusting accordingly. The outstanding amount as on March 31, 2021 is '' 1122.77 crore (Previous year '' 1252.45 crore). In the opinion of the management, the amount is good and fully recoverable.

66. Subsequent to the Balance Sheet date, on 26th April 2021, the Company has entered into a loan agreement with Jindal Power Limited, a subsidiary company (''JPL''), to convert the existing capital advances amounting to '' 28,54,00,00,000/- (refer note no. 62) and intercorporate deposits amounting to '' 1532,28,55,824/- availed by the Company from JPL (total aggregating to '' 4386,28,55,824/-) into 9.7% p.a. unsecured loan for a period of 7 years, repayable in 3 equal instalment 5th, 6th and 7th year. The stated Loan Agreement is subject to the necessary approvals of shareholders of the Company, lenders of the Company and JPL and such other approvals, consents, permissions and sanctions as may be necessary.

67. During the earlier year, the Board of Directors of the Company had approved the sale of certain captive power plants (CPP) to Jindal Power Limited (JPL) subsidiary company situated at Angul, Odisha (6 X 135 MW) and at Raigarh, Chhattisgarh (2 X 55 MW) aggregating to 920 MW at a fair market value determined by independent valuer appointed by the Board of Directors amounting to '' 5,275 crore; which is subject to necessary approvals to be arranged by the Company. The company had received advance against above of '' 2,854 crore (Previous year '' 2,854 crore) and Interest provided for on stated advance '' 276.83 crore(previous period '' 276.96 crore) .

68. The tax expenses for the year ended 31st March, 2020 are not comparable due to one-time adjustment made during previous year, arising on account of exercise of lower tax rate under Section 115BAA of the Income-tax Act, 1961 as introduced by the Taxation Laws (Amendment) Act, 2019.

69. Impact of COVID-19:- In March 2020, the WHO declared COVID-19 outbreak as a pandemic. The Company has assessed the possible impact of COVID-19 on its standalone financial statements based on the internal and external information available and concluded that no adjustment is required in these financial statements. However, subsequent to the Balance Sheet date, the Second wave of COVID again continues to spread across the country. The management has considered the future cash flows, current expansion and future plans, evaluated the operations of the Company, order booking and revenue, assets and liabilities

and factored in the impact of it up to the date of approval of these financial statements on the carrying value of its assets and liabilities and no major change in the financial performance of the Company on long term basis. The impact of this pandemic may be different from that estimated as at the date of approval of these standalone financial statements and the Company will continue to closely monitor any material changes to future economic conditions.

70. The Code on Social Security, 2020 (''Code'') has been notified in the Official Gazette in September 2020 which could impact the contribution by the Company towards certain employment benefits. The effective date from which the changes and rules would become applicable is yet to be notified. Impact of the changes will be assessed and accounted in the relevant period of notification of relevant provisions.

71. Balances of certain advances, creditors (including MSME) and receivables are in process of confirmation/reconciliation. Management believe that on reconciliation/confirmation there will not be any material impact on statement of financial statements.

72. The company is in the process of reconciling the data of GSTR 2A with GSTR 3B. In the view of the management, on final reconciliation the impact will not be material.

73. Information related to Consolidated financial

The company is listed on stock exchange in India, the Company has prepared consolidated financial as required under IND AS 110, Sections 129 of Companies Act, 2013 and listing requirements. The consolidated financial statement is available on company''s web site for public use.

74. Previous year figures have been regrouped/ rearranged/ recast, wherever considered necessary to conform to current year''s classification. Figures less than 50,000 have been shown as absolute number.

75. Notes 1 to 75 are annexed to and form an integral part of financial statements.


Mar 31, 2018

1. OVERVIEW

Jindal Steel & Power Limited (“the Company”) is one of the India’s leading steel producers with significant presence in sectors like mining and power generati on. It is listed on the National Stock Exchange of India and Bombay Stock Exchange in India. Its business is spread across India and overseas. The registered office is situated in the state of Haryana, the corporate office is situated in New Delhi and the manufacturing plants in India are in the states of Chhaffisgarh, Odisha, Jharkhand etc. The Company has global presence through subsidiaries, mainly in Australia, Botswana, Cameroon, Dubai, Indonesia, Liberia, Mauritania, Mauritius, Mozambique, Madagascar, Namibia, South Africa, Sultanate of Oman, Tanzania and Zambia and representative office in China. There are several business initiatives running simultaneously across continents.

These financial statements were approved and adopted by the Board of Directors of the Company in their meeting held on 09th May, 2018.

2. BASIS OF PREPARATION OF FINANCIAL STATEMENTS

The financial statements have been prepared in accordance with accounting standards as prescribed under Section 133 of the Companies Act, 2013 (the ‘Act’) read with Companies (Accounts) Rules, 2015 (Indian Accounting Standards(IND AS)). The Company has consistently applied the accounting policies used in the preparation of its financial statements.

The standalone financial statements provide comparative information in respect of previous year.

The significant accounting policies used in preparing the financial statements are set out in Note no. 3 of the Notes to the Standalone Financial Statements.

The preparation of the financial statements in conformity with Indian Accounting Standards (Ind AS) requires management to make judgments, esti mates and assumpti ons that affect the reported amounts of revenues, expenses, assets and liability es, and the accompanying disclosures at the date of the financial statements. The judgments, estimates and underlying assumpti ons are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision effects only that period or in the period of the revision and future periods if the revision affects both current and future years and, if material, their effects are disclosed in the notes to the financial statements. Actual results could vary from these estimates. (Refer Note no. 4 on critical accounting estimates, assumptions and judgments).

3. CRITICAL ACCOUNTING ESTIMATES,ASSUMPTIONS AND JUDGEMENTS

3.1 Property, plant and equipment

External advisor and/or internal technical team assess the remaining useful life and residual value of property, plant and equipment. Management believes that the assigned useful lives and residual values are reasonable.

3.2 Intangibles

Internal technical and user team assess the remaining useful lives of Intangible assets. Management believes that assigned useful lives are reasonable. All Intangibles are carried at net book value on transition.

3.3 Mine restoration obligation

In determining the cost of the mine restoration obligation the Company uses technical estimates to determine the expected cost to restore the mines and the expected timing of these costs.

3.4 Liquidated damages

Liquidated damages payable or receivable are estimated and recorded as per contractual terms/management assertion; estimate may vary from actuals as levy by customer/vendor.

3.5 Other estimates

The Company estimates the un-collectability of accounts receivable by analyzing historical payment patterns, customer concentrations, customer credit-worthiness and current economic trends. If the financial condition of a customer deteriorates, additional allowances may be required. Similarly, the Company provides for inventory obsolescence, excess inventory and inventories with carrying values in excess of net realizable value based on assessment of the future demand, market conditions and specific inventory management initiatives. In all cases inventory is carried at the lower of historical cost and net realizable value.

3.6 Standards issued but not effective

On March 28, 2018 the Ministry of Corporate Affairs (MCA) has notified Ind AS 115 - Revenue from Contract and Customers and certain amendment to existing Ind AS. These amendments shall be applicable to the company from April 01, 2018.

a) Issue of Ind As 115 - Revenue from Customers and Contracts

Ind AS 115 will supersede the current revenue recognition guidance including Ind AS 18 Revenue, Ind AS 11 Construction Contracts, and the related interpretations. Ind AS 115 provides a single model of accounti ng for revenue arising from contracts with customers based on the identification and satisfaction of performance obligations.

b) Amendment to existing issued Ind As

The MCA has also carried out amendments of the following accounting standards:

i) Ind AS 21 - The effect of changes in Foreign Exchange Rates

ii) Ind AS 40 - Investment Property

iii) Ind AS 12 - Income Taxes

iv) Ind AS 28 - Investment in Associates and Joint Ventures, and

v) Ind AS 112 - Disclosure of Interest in other entities.

Application of above standards is not expected to have any significant impact on the Company’s Financial Statements.

During the year the company has issued equity shares of Rs.1 each as follows :

14,20,000 equity shares at issue price of Rs.140.31 each (including premium of Rs.139.31 per share) to the promoter group company and 5,15,02,145 equity shares of Rs.1 each at issue price of Rs.233 each (including premium of Rs.232 per share) by way of Qualified Institutions Placement (QIP).

b) Terms/rights attached to equity shares

The Company has only one class of equity shares having par value of Rs.1 per share. Each holder of equity share is entitled to one vote per share. The Company declares dividend in Indian Rupees. The dividend, if any, proposed by the Board of Directors is subject to approval of the Shareholders in the ensuing Annual General Meeting.

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company after payment of all liabilities. The distribution will be in proportion to the number of equity shares held by the shareholders.

c) Aggregate number of bonus shares issued, shares issued for consideration other than cash and shares bought back during the period of five years immediately preceding the reporting date:

In accordance with Section 77 of the Companies Act, 1956 and buy back regulations of SEBI, the Company during the financial year 2013-14 bought back and extinguished 19,959,584 equity shares of Rs.1 each and created a Capital Redemption Reserve of Rs.2.00 Crore out of surplus in the Statement of Profit and Loss. The premium on buy back of Rs.498.80 Crore had been utilised from Securities Premium Account Rs.122.96 Crore and out of surplus in Statement of Profit and Loss Rs.375.84 Crore.

During the five years immediately preceding 31st March, 2018, the Company has not allotted any equity shares as bonus shares and also not issued any share for consideration other than cash.

In addition the Company allotted 1,50,000 equity shares during the preceding five years under its various Employees Stock Option Schemes / Employee Stock Purchase Scheme

d) Details of shareholders holding more than 5% shares in the Company

As per records of the Company, including its register of shareholders/members and other declarations received from shareholders regarding beneficial interest, the above shareholding represents both legal and beneficial ownership of shares.

e) Employees Stock purchase Scheme

In accordance with SEBI (Share Based Employees Benefits) Regulations 2014 and pursuant to JSPL ESPS 2013 Scheme, the Nomination and Remuneration Committee has vide its resolution dated 27.01.2017 offered and the Corporate Management Committee of the Board vide its resolution dated 03.02.2017 allotted 1,20,434 nos. equity shares of Rs.1 each at a premium of Rs.81.20 each to Mr Ravi Uppal, the then Managing Director & Group CEO during previous year. Out of total offered 150000 nos. equity shares so far, the Company had during the earlier years allotted 29,566 nos. equity shares of Rs.1 each.

f) Employees Stock Option Scheme

The Board of Directors in its meeting held on 8th August, 2017 approved the JSPL Employee Stock Option Plan 2017(JSPL ESOP Scheme-2017) and the same was approved by the shareholders in the Annual General Meeting held on 22nd September 2017, in accordance with SEBI (Share Based Employee Benefits) Requlations 2014.

Pursuant to the JSPL ESOP Scheme-2017, the Company may grant upto 4,50,00,000 options convertible into equal number of equity shares of Rs.1 each.

The Nomination and Remuneration Committee of the Board in its meeting held on 5th January, 2018 granted 51,21,735 options convertible into equal number of equity shares of the Company, to the eligible employees of the Company and its subsidiaries, at an exercise price of Rs.244.55 per option. As per JSPL ESOP Scheme-2017 the vesting period shall not be less than one year and maximum period will be three years. The employee shall exercise his options within a period of six months from respective vesting. No options have been vested/ exercised as on date. 28,934 options have lapsed as on 31st March, 2018.

Notes-

(i) On account of substantial investment made by the Company in seffing up/ expansion of industrial unit(s) at Raigarh (Chhattisgarh), including investment in acquisition of capital assets, one of the Company’s unit is eligible for sales tax exemption under the State Industrial Policy which aims towards industrialization of the State and development of backward areas. The Company had earlier treated the amount relating to sales tax exemption as capital receipt and credited the same to “Sales tax subsidy / Capital reserve” shown under the head “Reserve and Surplus” up to the Financial year ended 31st March, 2015. During the previous year Rs.316.70 Crore as stated above was credited to and considered as part of “other operating revenue”.

(ii) Securities Premium Reserve represents the amount received in excess of par value of securities issued by the company. This reserve is utilised in accordance with provisions of the act.

(iii) The Company is required to create Debenture Redemption Reserve out of the profits which is available for the purpose of redemption of debentures.

(iv) Capital Redemption Reserve represents the statutory reserve created on buy back of shares. It is not available for distribution.

(v) During the year, the company has issued 4,80,00,000 converti ble warrants at issue price of Rs.140.31 each to a promoter group company on preferential basis. These warrants are convertible into equal number of fully paid equity shares of Rs.1 each upon exercise of the option of conversion of the warrants held by the holder(s), within a period of 18 months from the date of allotment of warrants. Out of Rs.168.37 Crore (i.e. 25% of the total consideration of Rs.673.49 Crore) received, Rs.4.80 Crore has been shown as ‘Money Received against Share Warrants’ and balance amount of Rs.163.57 Crore has been included under ‘Securities premium account.

Debentures

Security

i) Balance amount of debentures of Rs.650 Crore (net of Rs.100 Crore redeemed during the year) (March 31, 2017 NIL) placed initially with HDFC Bank Limited on private placement basis are redeemable at par on 11.03.2021 as unsecured. During the year, the company has created security by way of first and exclusive pledge, in favour of Debenture trustee, over 5,78,05,714 nos. equity shares of Jindal Power Limited held by the Company.

ii) Debentures of Rs.1000 Crore (March 31, 2017 Rs.1000 Crore) placed initially with Life Insurance Corporation of India on private placement basis are redeemable at par in 2 equal annual instalments at the end of 9.5 and 10.5 years from the date of respective allotments i.e. Rs.100 Crore (12.10.2009), Rs.150 Crore (22.10.2009), Rs.150 Crore (24.11.2009), Rs.150 Crore (24.12.2009), Rs.150 Crore (25.01.2010), Rs.150 Crore (19.02.2010) and Rs.150 Crore (26.03.2010). The debentures are to be secured (charge to be modified) by way of first ranking pari passu charge over the both movable and immovable fixed assets, both present & future, and other related miscellaneous assets etc.of the Angul Phase 1A Plant (Angul Phase 1A plant means collectively the Angul Integrated Steel Plant (ISP) and Plate Mill (PM) Project, the Angul Direct Reduced Iron (DRI) Project and the Angul Captive Power Plant (CPP) Project) at Angul, Odisha of the Company in favour of the Debenture Trustees.

iii) Debentures of Rs.500 Crore (March 31, 2017 Rs.500 Crore) placed initi ally with Life Insurance Corporation of India on private placement basis are redeemable at par in 2 equal annual instalments at the end of 9.5 and 10.5 years from the date of respective allotments i.e. Rs.100 Crore (24.08.2009), Rs.80 Crore (08.09.2009), Rs.80 Crore (08.10.2009), Rs.80 Crore (09.11.2009), Rs.80 Crore (08.12.2009) and Rs.80 Crore (08.01.2010). The debentures are secured on pari-passu charge basis by way of hypothecati on of movable fixed assets of the Company (excluding assets charged on exclusive basis) in favour of the Debenture Trustees. In addition a first pari passu mortgage on a part of immovable property pertaining to unit located at Kharsia Road, Raigarh and a part of the immovable property pertaining to unit located at 13 KM Stone, G E Road, Mandir Hasaud, Raipur in favour of the Debenture Trustees.

iv) Debentures of Rs.1000 Crore (March 31, 2017 NIL) placed initi ally with Kotak Mahindra Bank on private placement basis are redeemable at par in 3 instalments, Rs.330 Crore at the end of 4 years, Rs.330 Crore at the end of 5 years and Rs.340 Crore at the end of 6 years from the date of allotment i.e. 18th December, 2014 as unsecured. During the year, the Company has created security by way of first and exclusive pledge, in favour of Debenture trustee, over 7,70,74,285 nos. equity shares of Jindal Power Limited held by the Company.

v) Balance amount of debentures of Rs.49.60 Crore (March 31, 2017 Rs.62 Crore) placed initially with SBI Life Insurance Company Limited on private placement basis are redeemable at par in 4 equal annual instalments. The debentures are to be secured (charge to be modified) by way of first ranking pari passu charge over the both movable and immovable fixed assets, both present & future, and other related miscellaneous assets etc. of the Angul Phase 1A Plant (Angul Phase 1A plant means collectively the Angul ISP and PM Project, the Angul DRI Project and the Angul CPP Project) at Angul, Odisha of the company in favour of the Debenture Trustees.

Term Loans from Banks

Security

i) Loans of Rs.5,983.03 Crore (March 31, 2017 Rs.6,118.22 Crore) are repayable in 71 quarterly instalments are to be secured by way of first ranking pari passu charge over the both movable and immovable fixed assets, both present & future, and other related miscellaneous assets etc. of the Angul Phase 1A Plant (Angul Phase 1A plant means collectively the Angul ISP and PM Project, the Angul DRI Project and the Angul CPP Project) at Angul, Odisha of the Company. The next instalment is due on 30th June, 2018.

ii) a. Loans of Rs.1,508.72 Crore (March 31, 2017 Rs.1,559.61 Crore) repayable in 27 quarterly instalments are secured by way of a first charge on pari passu basis over all the movable and immovable fixed assets (plate mill & ISP facility, DRI, Captive Power Plant and other misc. assets etc.), both present and future, of plant phase 1A at Angul, Odisha. The next instalment is due on 30th June, 2018.

b. Loans of Rs.475.00 Crore (March 31, 2017 Rs.500.00 Crore) repayable to HDFC bank in 27 quarterly instalments are secured by way of a first charge on pari passu basis over all movable fixed assets (plate mill & ISP facility, DRI, CPP and other misc. assets etc.), both present and future, of phase 1A at Angul, Odisha. Further, charge in favor of HDFC Bank in respect of said loan by way of a first charge on immovable fixed assets, both present and future, of Phase 1A at Angul, Odisha is to be created. The next instalment is due on 30th June, 2018.

iii) Loans of Rs.1055.05 Crore (March 31, 2017 Rs.1,340 Crore) initi ally taken from ICICI bank on bilateral basis are repayable by way of ballooning instalments in two tranches. An amount of Rs.190.05 Crore shall be repayable in 3 quarterly instalment and an amount of Rs.865 Crore shall be repayable in 23 quarterly instalments; the next instalment is due on 15th April, 2018.

Loans of Rs.799.95 Crore (March 31, 2017 Rs.956.24 Crore) initially taken from HDFC Bank on bilateral basis are repayable in 16 quarterly instalments; the next instalment is due on 30th June, 2018.

Loans of Rs.1,274.66 Crore (March 31, 2017 Rs.1,465.94 Crore) from State Bank of India are repayable in 24 quarterly instalments; the next instalment is due on 30th June, 2018.

Above loans are secured by way of a first pari passu charge on all the present movable Fixed Assets of units located at Balkudra, Patratu, District Ramgarh, Jharkand; 13 KM Stone, G E Road, Mandir Hasaud, Raipur; 201 to 204, Industrial Park SSD, Punjipatra, Raigarh, Chhattisgarh; Bhikaji Cama Place, New Delhi; and all movable Fixed Assets (present as well as future) located at Kharsia Road, Raigarh, Chhattisgarh. In addition a first ranking mortgage and pari passu charge on immovable property pertaining to unit located at Kharsia Road, Raigarh and a part of the immovable property pertaining to unit located at 13 KM Stone, G E Road, Mandir Hasaud, Raipur.

iv) Loans of Rs.366.86 Crore (March 31, 2017 Rs.360.22 Crore) are repayable in 71 quarterly instalments and are to be secured by way of first ranking pari passu charge over both the immovable and movable assets, both present and future, (including related rights, titles claims and demands in the contracts etc.) of Dongamahua Captive Power Plant (CPP) Project A. (Dongamahua CPP Project A means the 2*135 MW (Phase -1) captive power plant situated at village Dongamahua, Chaffisgarh). The next instalment is due on 30th June, 2018.

v) Loans of Rs.472.53 Crore (March 31, 2017 Rs.483.16 Crore) are repayable in 71 quarterly instalments and are to be secured by way of a first ranking pari passu charge over both the immovable and movable assets, both present and future, (including related rights, titles claims and demands in the contracts etc.) of the Dongamahua CPP Project B. (Dongamahua CPP Project B means the 2*135 MW (Phase -2) captive power plant situated at village Dongamahua, Chattisgarh). The next instalment is due on 30th June, 2018.

OTHER LOANS

Security

Other loan of Rs.191.91 Crore (March 31, 2017 Rs.196.21 Crore) is repayable in 71 quarterly instalments and are to be secured by way of first ranking pari passu charge over the both movable and immovable fixed assets, both present & future, and other related miscellaneous assets etc. of the Angul Phase 1A Plant. (Angul Phase 1A plant means collectively the Angul ISP and PM Project, the Angul DRI Project and the Angul CPP Project) at Angul, Odisha of the Company.

Note-

Project Loan of Rs.7215.34 Crore outstanding as on 30th Nov 2015 were elongated under the 5/25 Scheme (outstanding as on 31st March 2018 Rs.7014.33 Crore). The Company has executed Joint Documentation with lenders to effect the sanctioned restructuring scheme. Security against some of the stated loans along with debentures (refer para: “Debenture” ii & v, “Term Loan from Banks” i and “other Loans”) is to be modified to first ranking pari passu charge over the both movable and immovable fixed assets, both present & future, and other related miscellaneous assets etc. of the Angul Phase 1A Plant (Angul Phase 1A plant means collectively the Angul ISP and PM Project, the Angul DRI Project and the Angul CPP Project) at Angul, Odisha of the Company in favour of the debenture trustees/ security trustee and security against other stated loans (refer para; “term loan from banks” iv & v) is to be modified by way of first ranking pari passu charge over both the immovable and movable assets, both present and future, of the Dongamahua CPP project A and project B respectively (including related rights, titles claims and demands in the contracts etc.). (Dongamahua CPP Project A means the 2*135 MW (Phase-1) captive power plant and Dongamahua CPP project B means the 2*135 MW (Phase-2) captive power plant; both situated at village Dongamahua, Chaffisgarh). Security against loans pertaining to Dongamahua CPP project A is to be modified in favor of security trustee and security pertaining to Dongamahua CPP project B is to be modified in favour of the Lender.

Buyer’s credit

Loans Rs.592.12 Crore (Previous Year Rs.660.10 Crore) are secured by first ranking pari-passu charge by way of hypothecation over all of the Company’s current assets, both present and future and second ranking pari passu charge (charge created/to be created) over the entire fixed assets, both movable & immovable, of the Company, both present and future.

The interest rate for the above term loans from banks and others (excluding penal interest) varies from 9.75% to 13% p.a The weighted average rate of interest for buyers’ credit is 2.00%p.a.

In respect of certain loan, charges are in process of satisfaction/modification

Debentures

Debentures of Rs.300 Crore (Previous Year Rs.300 Crore) placed initi ally with ICICI Bank Limited on private placement basis are redeemable at par at the end of 5 years from the date of allotment i.e. 11.08.2014.

@Shown as secured during the year (previous year unsecured)

External Commercial Borrowings

The balance amount of ECA from Credit Agricole CIB of Rs.50.59 Crore (Previous Year : ECA of Rs.94.32 Crore from Credit Agricole CIB and ECB of 107.14 Crore from ICICI Bank Limited) repayable in 5 half yearly instalments. The next instalment is due on 9th September, 2018.

Repayments and Interest rates for the above Unsecured Debenture & External Commercial Borrowings are as follows:

i) Loan of Rs.562.50 Crore (Previous year Rs.562.50 Crore) is secured by subservient charge by way of hypothecation of current assets of the Company comprising of book debts and stocks.

Cash Credit from Bank and Buyer’s Credit

These are secured by first ranking pari-passu charge by way of hypothecation over all of the Company’s current assets, both present and future and second ranking pari passu charge (charge created/to be created) over the entire fixed assets, both movable & immovable, of the Company, both present and future. The cash credit is repayable on demand.

Note

The Weighted average rate of interest for Cash credit is 10.94% p.a.

The Weighted average rate of interest for WCDL loan is 10.15% p.a.

The Weighted average rate of interest on Buyer’s credit is 2% p.a.

The Weighted average rate of interest for Secured term loan is 12.50% p.a.

The Weighted average rate of interest for Unsecured term loan from bank is 11.52% p.a.

The Weighted average rate of interest for Unsecured term loan from others is 10.88% p.a.

The Weighted average rate of interest for Loan from related parties is 9.73%

5. CSR Expenses

In view of the losses in previous three years the Company is not required to spend on corporate social responsibility (CSR) as per section 135 of the Companies Act, 2013. However company has voluntarily spend following amount on CSR expenses:-

“Provision during the year” for asset retirement obligation is after considering the impact of change in discount rate.

The expected outflow of provisions for asset retirement obligation is 45 to 47 years.

6. ‘Employee Benefits’, in accordance with Accounting Standard (Ind AS-19) :

A. The Company has a defined benefit gratuity plan. Every employee who has completed five years or more of service gets a gratuity on departure at 15 days’ salary (last drawn salary) for each completed year of service.

B. The actuary has provided a valuation of Provident Fund Liability and based on the below assumptions made a provision of Rs.12.35 Crore as at 31st March, 2018 (Previous Year Rs.13.88 Crore).

C. The following tables summarise the components of net benefit expense recognised in the Statement of Profit and Loss and the funded status and amounts recognised in the balance sheet for the respective plans.

The above sensitivity analysis is based on a change in an assumption while holding all other assumption constant. In practice, this is unlikely to occur and changes in some of the assumptions may be correlated. When calculating the sensitivity of the defined benefit obligation to significant actuarial assumpti ons the same method (projected unit credit method has been applied as when calculating the defined benefit obligation recognised within the Balance Sheet.

7. As per IND AS 108 Operating Segment, segment information has been provided in notes to consolidated financial statements.

8. Pursuant to the Judgment dated 25.08.2014 read with Order dated 24.09.2014 passed by the Hon’ble Supreme Court the allocation of the coal blocks, Gare Palma IV/1 (operational); Utkal B-1, Amarkonda Murgadangal, Gare Palma IV/6, Ramchandi, Urtan North and Jitpur (non-operational) to the Company/its joint ventures stand de-allocated. Prior to the said de-allocation by the Hon’ble Supreme Court, the Government had invoked bank guarantees provided by the Company to the extent of Rs.153.55 Crore (previous year Rs.153.55 Crore) with respect to Ramchandi, Amarkonda Murgadangal and Jitpur Coal Blocks. These matters, besides the matters with respect to Urtan North and Gare Palma IV/6 coal blocks, were contested by the Company at various levels and the invocation of the said bank guarantees had been stayed by the respective Hon’ble High Courts. Bank guarantees amounting to Rs.155 Crore (previous year Rs.155 Crore) have been provided by the Company for the above mentioned non- operational coal blocks.

Pursuant to the said de-allocation by the Hon’ble Supreme Court and pending the decision/s of the Ministry of Coal on the show cause notices issued by the Ministry of Coal calling upon the Company to show cause as to why the delay in the development of the non-operational coal blocks should not be held as violation of the terms and conditions of the allocation letters of the said coal blocks, the respective Hon’ble High Courts have required the Company to keep the said Bank Guarantees alive pending the decision of the Government (Ministry of Coal) in individual case. The High Courts have restrained the Ministry of Coal to act in furtherance of its subsequent decision/s, to invoke the bank guarantee/s, for a further period of two weeks’ time from the date of the communication of such decision/s in order to enable the Company to challenge such decision/s of the Ministry of Coal. In the meantime, the invocation of the bank guarantees has been stayed by the Hon’ble High Courts.

The Company believes that it has good case in respect to this matter and hence no provision is considered necessary.

9. Interest in Joint Ventures:

The Company’s interest as a venturer, in jointly controlled entities (Incorporated Joint Ventures) is as under:

The Company’s interests in the above Joint Ventures is reported as Non-Current Investments (Note-8(c)) and stated at cost. However, the Company’s share of assets, liabilities, income and expenses, etc. (each without elimination of the effect of transactions between the Company and the joint ventures) related to its interest in the Joint Ventures are:

Notes:

i) All Inter corporate deposits are given to unrelated corporate entities at an interest ranging from 7.65% to 13.25% p.a.

ii) All the loans are provided for business purpose of respective entities, repayable on demand with repayment option to the borrower.

b) Investment Made:

There are no investment made by the Company other than those stated under note 8 in the financial statements

d) Securities given

There are no securities given during the year

10. Financial and Derivative Instruments:

a) The Company uses foreign currency forward and Interest rate swap contracts to manage some of its transactions exposure. The details of derivative financial instruments are as follows:

b) The principal component of monetary foreign currency loans/debts and payable amounting to Rs.2021.76 Crore (Previous year Rs.2457.69 Crore) and receivable amounting to Rs.970.36 Crore (Previous year Rs.950.51 Crore) not hedged by derivative instruments.

11. Fair value of financials assets and liabilities

Class wise compositi on of carrying amount and fair value of financial assets and liabilities that are recognised in the financials statements is given below:

Fair value hierarchy

The Company uses the following hierarchy for fair value measurement of the company’s financials assets and liabilities:

Level 1: Quoted prices/NAV (unadjusted) in active markets for identical assets and liabilities at the measurement date.

Level 2: other techniques for which all inputs which have a significant effect on the recorded fair value are observable, either directly or indirectly.

Level 3: techniques which use inputs that have a significant effect on the recorded fair value that are not based on observable market data.

During the year ended March 31, 2018 and March 31, 2017, there were no transfers between Level 1 and Level 2 fair value measurements, and no transfer into and out of Level 3 fair value measurements.

Fair valuation of financial guarantees

Financial guarantees issued by the company on behalf of its overseas subsidiaries have been measured at fair value through profit and loss account. Fair value of said guarantees as at March 31, 2018 and March 31, 2017 have been considered at nil as estimated by the management and an independent professional.

Fair valuation techniques

The Company maintains policies and procedures to value financial assets or financial liabilities using the best and most relevant data available. The fair values of the financial assets and liabilities are included at the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

The following methods and assumptions were used to estimate the fair values:

1) Fair value of cash and deposits, trade receivables, trade payables, and other current financial assets and liabilities approximate their carrying amounts largely due to the short-term maturities of these instruments.

2) Long-term fixed-rate and variable-rate receivables / borrowings are evaluated by the Company based on parameters such as interest rates, specific country risk factors, credit risk and other risk characteristics. Fair value of variable interest rate borrowings approximates their carrying values. For fixed interest rate borrowing fair value is determined by using the discounted cash flow (DCF) method using discount rate that reflects the issuer’s borrowings rate. Risk of non-performance of the Company is considered to be insignificant in valuation.

3) The fair values of derivatives are estimated by using pricing models, where the inputs to those models are based on readily observable market parameters basis contractual terms, period to maturity, and market parameters such as interest rates, foreign exchange rates, and volatility. These models do not contain a high level of subjectivity as the valuation techniques used do not require significant judgement, and inputs thereto are readily observable from actively quoted market prices. Management has evaluated the credit and non-performance risks associated with its derivative counterparties and believe them to be insignificant and not warranting a credit adjustment.

12. Financial Risk Management

The Company’s principal financial liabilities, other than derivatives, comprise borrowings, trade and other payables, and financial guarantee contracts. The main purpose of these financial liabiliti es is to manage finances for the Company’s operations. The Company’s financial assets comprise investments, loan and other receivables, trade and other receivables, cash, and deposits that arise directly from its operations.

The Company’s activities are exposed to market risk, credit risk and liquidity risk. In order to minimise adverse effects on the financial performance of the Company, derivative financial instruments such as forward contracts are entered into to hedge foreign currency risk exposure. Derivatives are used exclusively for hedging purposes and not as trading and speculative purpose.

I. Market risk

Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Market prices comprise three types of risk: currency rate risk, interest rate risk and other price risks, such as equity price risk and commodity risk. Financial instruments affected by market risk include loans and borrowings, deposits, investments, and derivative financial instruments.

The sensitivity analysis in the following sections relate to the position as at 31st March, 2018 and 31st March, 2017.

The analysis exclude the impact of movements in market variables on: the carrying values of gratuity and other post-retirement obligations; provisions. The sensitivity of the relevant profit or loss item is the effect of the assumed changes in respective market risks. The Company uses derivative financial instruments such as foreign exchange forward contracts of varying maturity depending upon the underlying contract and risk management strategy to manage its exposures to foreign exchange fluctuations.

(a) Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. In order to optimize the Company’s position with regard to interest income and interest expenses and to manage the interest rate risk, the Company performs a comprehensive corporate interest rate risk management by balancing the proportion of the fixed rate and floating rate financial instruments in its total portfolio.

The Assumed movement in basis point for interest rate sensitivity analysis is based on currently observable market environment.

(b) Foreign currency risk

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. The Company transacts business primarily in Indian Rupees and US dollars. The Company has obtained foreign currency loans and has foreign currency trade payables and receivables and is therefore exposed to foreign exchange risk. Certain transactions of the Company act as a natural hedge as a portion of both assets and liabilities are denominated in similar foreign currencies. For the remaining expore to foreign exchange risk the Company adopts a policy of selective hedging based on risk perception of the management. Foreign exchange contracts are carried at fair value.

The Company hedges its exposure to fluctuati ons by using foreign currency forwards contracts on the basis of risk perception of the management.

The carrying amounts of the Company’s net foreign currency exposure (net of forward contracts) denominated monetary assets and monetary liabilities at the end of the reporting period as follows:

Foreign currency sensitivity

5% increase or decrease in foreign exchange rates vis- a -vis Indian Rupees, with all other variables held constant, will have the following impact on profit before tax and other comprehensive income:

The assumed movement in exchange rate sensitivity analysis is based on the currently observable market environment by the management.

(c) Commodity Price Risk

Commodity Price Risk is the risk that future cash flow of the Company will fluctuate on account of changes in market price of key raw materials.

The Company is exposed to the movement in price of key raw materials in domestic and internati onal markets. The Company has in place policies to manage exposure to fluctuations in the prices of the key raw materials used in operations. The Company enters into contracts for procurement of materials, most of the transactions are short term fixed price contract and a few transactions are long term fixed price contracts.

II. Credit risk

Credit risk arises from the possibility that the counterparty will default on its contractual obligations resulting in financial loss to the Company. To manage this, the Company periodically assesses the financial reliability of customers, taking into account the financial conditions, current economic trends, and analysis of historical bad debts and ageing of accounts receivable.

The Company considers the probability of default upon initial recognition of assets and whether there has been a significant increase in credit risk on an ongoing basis through each reporting period. To assess whether there is significant increase in credit risk, it considers reasonable and supportive forward looking information such as:

(i) Actual or expected significant adverse changes in business.

(ii) Actual or expected significant changes in the operating results of the counterparty.

(iii) Financial or economic conditions that are expected to cause a significant change to the counterparty’s ability to meet its obligation

(iv) Significant increase in credit risk and other financial instruments of the same counterparty

(v) Significant changes in the value of collateral supporting the obligation or in the quality of third party guarantees or credit enhancements.

III. Liquidity Risk

Liquidity risk refers to risk of financial distress or extra ordinary high financing cost arising due to shortage of liquid funds in a situation where business conditions unexpectedly deteriorate and require financing. The Company’s objective is to maintain at all times optimum levels of liquidity to meet its cash and collateral requirements. Processes and policies related to such risk are overseen by senior management and management monitors the Company’s net liquidity position through rolling forecast on the basis of expected cash flows.

The table below provides details regarding the remaining contractual maturities of financial liabilities at the reporting date based on contractual undiscounted payments:

13. Capital Risk Management

The Company manages its capital structures and makes adjustment in light of changes in economic conditions and requirements of financing covenants. To this end the Company may adjust the dividend payment to shareholders, return capital to shareholders or issue new shares.

The primary objective of the Company’s Capital Management is to maximize the shareholder value by maintaining an efficient capital structure and healthy ratios and safeguard Company’s ability to continue as a going concern. The Company also works towards maintaining optimal capital structure to reduce the cost of capital. No changes were made in the objectives,policies, process during the year ended 31st March, 2018.

Notes-

(i) Debt is defined as long-term and short-term borrowings including current maturiti es (excluding derivatives and financial guarantee contracts) as described in notes 23 and 27.

(ii) Equity includes all capital and reserves of the Company that are managed as capital.

14. Related Party Disclosures as per Ind AS 24

A. List of Related Parties and Relationships

a) Subsidiaries, Step down Subsidiaries

I Subsidiaries

1 Jindal Power Limited

2 Jindal Steel Bolivia SA

3 Jindal Steel & Power (Mauritius) Limited

4 Skyhigh Overseas Limited

5 Everbest Steel and Mining Holdings Limited

6 Jindal Angul Power Limited

7 JB Fabinfra Limited

8 Trishakti Real Estate Infrastructure and Developers Limited

9 Raigarh Pathalgaon Expressway Ltd

II Subsidiaries of Jindal Power Limited

1 Attunli Hydro Electric Power Company Limited

2 Etalin Hydro Electric Power Company Limited

3 Jindal Hydro Power Limited

4 Jindal Power Distribution Limited

5 Ambitious Power Trading company Limited

6 Jindal Power Transmission Limited

7 Jindal Power Ventures (Mauritius) Limited

8 Kamala Hydro Electric Power Co. Limited

9 Kineta Power Limited

10 Uttam Infralogix Limited

11 Jindal Realty Limited

III Subsidiary of Skyhigh Overseas Limited Gas to Liquids International S.A

IV Subsidiary of Jindal Power Ventures (Mauritius) Limited Jindal Power Senegal SAU

V Subsidiary of Uttam Infralogix Limited Panther Transfreight Limited

VI Subsidiary of Jindal Realty Limited

Jagran Developers Private Limited (w.e.f. January 11, 2018)

VII Subsidiary of JB Fabinfra Pvt Limited

All Tech Building System Limited (ceased to be subsidiary w.e.f. October 1, 2017)

VIII Subsidiaries of Jindal Steel & Power (Mauritius) Limited

1 Blue Castle Ventures Limited

2 Brake Trading (Pty) Limited

3 Enduring Overseas Inc (ceased to be subsidiary w.e.f. June 26, 2017)

4 Fire Flash Investments (Pty) Limited

5 Harmony Overseas Limited

6 Jin Africa Limited

7 Jindal (BVI) Limited

8 Jindal Africa Investments (Pty) Limited

9 Jindal Africa SA

10 Jindal Botswana (Pty) Limited

11 Jindal Investimentos LDA

12 Jindal Investment Holding Limited.

13 Jindal KZN Processing (Pty) Limited

14 Jindal Madagascar SARL

15 Jindal Mining & Exploration Limited

16 Jindal Mining Namibia (Pty) Limited

17 Jindal Steel & Minerals Zimbabwe Limited

18 Jindal Steel & Power (BC) Limited

19 Jindal Steel & Power (Australia) Pty Limited

20 Jindal Tanzania Limited

21 Jindal Zambia Limited

22 JSPL Mozambique Minerals LDA

23 Jublient Overseas Limited

24 Landmark Mineral Resources (Pty) Limited

25 Osho Madagascar SARL

26 PT Jindal Overseas

27 Jindal Shaded Iron & Steel L.L.C

28 Sungu Sungu Pty limited

29 Trans Asia Mining Pty. Limited

30 Vision Overseas limited

31 Wollongong Coal Limited

32 Jindal Steel DMCC

33 Jindal Mauritania SARL

34 Jindal Africa Liberia Limited

IX Others

1 Belde Empreendimentos Mineiros LDA, a subsidiary of JSPL Mozambique Minerals LDA

2 Eastern Solid Fuels (Pty) Limited, a subsidiary of Jindal Mining & Exploration Limited

3 PT BHI Mining Indonesia, a subsidiary of Jindal Investment Holding Limited

4 PT Sumber Surya Gemilang, a subsidiary of PT. BHI Mining Indonesia

5 PT Maruwai Bara Abadi, a subsidiary of PT. BHI Mining Indonesia

6 Jindal Mining SA (Pty) Limited, a subsidiary of Eastern Solid Fuels (Pty) Limited

7 Bon-Terra Mining (Pty) Limited, a subsidiary of Jindal Energy SA (Pty) Limited

8 Jindal (Barbados) Holding Corp, a subsidiary of Jindal (BVI) Limited

9 Jindal Energy (Bahamas) Limited, a subsidiary of Jindal (BVI) Limited

10 Jindal Energy (Botswana) Pty Limited, a subsidiary of Jindal (BVI) Limited

11 Jindal Energy (SA) Pty Limited, a subsidiary of Jindal Africa Investments (Pty) Limited

12 Jindal Transafrica (Barbados) Corp, a subsidiary of Jindal (BVI) Limited

13 Jindal Resources (Botswana) Pty Limited, a subsidiary of Jindal Transafrica (Barbados) Corp

14 Trans Africa Rail (Pty) Limited, a subsidiary of Jindal Transafrica (Barbados) Corp

15 Sad-Elec (Pty) Limited, a subsidiary of Jindal Energy (SA) Pty Limited

16 Jindal (Barbados) Mining Corp, a subsidiary of Jindal (Barbados) Holding Corp

17 Jindal (Barbados) Energy Corp, a subsidiary of Jindal (Barbados) Holding Corp

18 Meepong Resources (Mauritius) (Pty) Limited, a subsidiary of Jindal (Barbados) Mining Corp

19 Meepong Resources (Pty) Limited, a subsidiary of Meepong Resources (Mauritius) (Pty) Limited

20 Meepong Energy (Mauritius) (Pty) Limited, a subsidiary of Jindal (Barbados) Energy Corp

21 Meepong Energy (Pty) Limited, a subsidiary of Meepong Energy (Mauritius) (Pty) Limited

22 Meepong Service (Pty) Limited, a subsidiary of Meepong Energy (Pty) Limited

23 Meepong Water (Pty) Limited, a subsidiary of Meepong Energy (Pty) Limited

24 Peerboom Coal (Pty) Limited, a subsidiary of Jindal Africa Investment (Pty) Limited

25 Shadeed Iron & Steel Company Limited, a subsidiary of Jindal Shadeed Iron & Steel LLC

26 Southbulli Holding Pty Limited, a subsidiary of Wollongong Coal Limited

27 Oceanic Coal Resources NL, a subsidiary of Wollongong Coal Limited

28 Wongawilli Coal Pty Limited, a subsidiary of Oceanic Coal Resources NL

29 Koleko Resources (Pty) Limited, a subsidiary of Jindal Africa Investment (Pty) Limited

30 Legend Iron Limited, a subsidiary of Jindal Mining & Exploration Limited

31 Cameroon Mining Action (CAMINA) SA, a subsidiary of Legend Iron Limited

32 Enviro Waste Gas Services Pty Ltd., Subsidiary of Wollongong Coal Limited

b) Associates

1 Nalwa Steel & Power Limited (ceased to be associate w.e.f. March 27, 2018)

2 Prodisyne (Pty) Limited

3 Thuthukani Coal (Pty) Limited

c) Joint Ventures

1 Jindal Synfuels Limited

2 Shresht Mining and Metals Private Limited

3 Urtan North Mining Private Limited

d) Other Significant influences OPJ Trading Private Limited

e) Key Managerial person

1 Shri Naveen Jindal (Chairman)

2 Shri Ravi Uppal (MD & CEO) Upto September 30, 2017

3 Shri D.K. Saraogi (Wholetime Director)

4 Shri Rajeev Bhadauria (Wholetime Director)

5 Shri Rajesh Bhatia (Chief Financial Officer) Upto June 27, 2017

6 Shri Deepak Sogani (Chief Financial Officer) w.e.f. December 19, 2017

7 Shri Murli Manohar Purohit (Company Secretary Upto May 31, 2017)

8 Shri Jagdish Patra (Company Secretary w.e.f. August 8, 2017)

f) Enterprises over which Key Management Personnel and their relatives exercise significant influence and with whom transaction have taken place during the year

1 Jindal Stainless Limited

2 Jindal Industries Limited

3 Bir Plantation Limited

4 India Flysafe Aviation Limited

5 Minerals Management Services (India) Private Limited

6 Jindal Saw Limited

7 JSW Steel Limited

8 Rohit Tower Building Limited

9 JSW Projects Limited

10 JSW Energy Limited

11 JSW Steel Coated Product Limited

12 JSW Severfield Structures Limited

13 JSW International Tradecorp Pte Limited

14 Jindal Coke Limited

15 Jindal Stainless Steelway Limited

16 Ambitious Power Trading Company Limited

17 Jindal United Steel Limited

18 JSW Steel Processing Centres Limited

19 JSW Cement Limited

20 Opelina Finance & Investment Limited

21 Nalwa Steel & Power Limited (w.e.f. March 27, 2018)

g) Post Employment Benefit Entity Jindal Steel & Power Ltd EPF Trust

15. Stock of work in progress (note 13) includes Stock of Iron Ore/ Fines of 12.22 Million MT lying with third party. The value of such stock is Rs.2,310.94 Crore as per Management on the basis of valuation report of Independent Valuer.

16. Impairment Review

Assets are tested for impairment whenever there are any internal or external indicators of impairment.

Impairment test is performed at the level of each Cash Generating Unit (‘CGU’) or groups of CGUs within the Company at which the goodwill or other assets are monitored for internal management purposes, within an operating segment.

The impairment assessment is based on higher of value in use and value from sale calculations.

During the year, the testing did not result in any impairment in the carrying amount of goodwill and other assets.

The measurement of the cash generating units’ value in use is determined based on financial plans that have been used by management for internal purposes. The planning horizon reflects the assumptions for short to- mid term market conditions.

Key assumptions used in value-in-use calculations:

- Operating margins (Earnings before interest and taxes)

- Discount Rate

- Growth Rates

- Capital expenditures

Operating margins: Operating margins have been estimated based on past experience after considering incremental revenue arising out of adopti on of valued added and data services from the existing and new customers, though these benefits are partially offset by decline in tariffs in a hyper competitive scenario. Margins will be positively impacted from the efficiencies and initiatives driven by the Company; at the same time, factors like higher churn, increased cost of operations may impact the margins negatively.

Discount rate: Discount rate reflects the current market assessment of the risks specific to a CGU or group of CGUs. The discount rate is estimated based on the weighted average cost of capital for respective CGU or group of CGUs.

Growth rates: The growth rates used are in line with the long term average growth rates of the respecti ve industry and country in which the Company operates and are consistent with the forecasts included in the industry reports.

Capital expenditures: The cash flow forecasts of capital expenditure are based on past experience coupled with additional capital expenditure required.

17. The Hon’ble Supreme Court of India by its Order dated 24 September 2014 cancelled number of coal blocks allocated to the Company by Ministry of Coal, Government of India and directed to pay an additional levy of Rs.295 per MT on gross coal extracted. The Company has paid under protest such levy on coal extracted during the period from 1993 to 31st March, 2015 of Rs.2,082.23 Crore. The management based on legal opinion has charged to the statement of profit and loss, as exceptional item during the year 2014-15 for Rs.807.77 Crore computed on net extraction (run of mines less shale, rejects and ungraded middling) of coal by the Company. The balance amount of Rs.1,274.46 Crore has been shown as recoverable from the Government Authority since the entire amount of additional levy has been paid under protest.

18. The Company has net book value of investment made in mining assets including land, infrastructure and clearance etc. of Rs.425 Crore and filed claim for the same pursuant to directive vide letter dated 26th December, 2014 given by the Ministry of Coal on such mines. Meanwhile the Ministry of Coal has made interim payment to the Company of Rs.22.72 Crore towards the same. Pending final settlement of the aforesaid claim, this amount has been accounted for as advance.

19. The Company has filed legal suits /notices or in the process of filing legal case /sending legal noti ces / making efforts for recovery of debit balances of Rs.180.28 Crore (P.Y. 2016-17 Rs.218.62 Crore) plus interest wherever applicable, which are being carried as long term /short term advances, trade receivables and other recoverable. Pending outcome of legal proceedings/Company ‘s efforts for recovery and based on legal advise in certain cases, the Company has considered aforesaid amounts as fully recoverable. Hence, no provision has been made in respect of these balances.

20. Subject to customary regulatory approvals and other conditions precedent(s), the Board of Directors at its meeting held on 3rd May,2016 has approved the agreement for divestment of 1,000 MW Power unit of Jindal Power Limited (a subsidiary of the Company (JPL)), located in Chhaffisgarh into a separate purpose vehicle (SPV), for the purpose of transferring the same to JSW Energy Limited through sale of the enti re share capital and other securiti es of the aforesaid entity in terms of the share purchase agreement for an enterprise value of Rs.6,500 Crore plus the value of Net Current Assets as on the Closing Date. The valuation may vary based upon the achievement of PPA’s before the closing date 30th June, 2018 and as prescribed in the Agreement subject to minimum of Rs.4,000 Crore plus the value of Net Current Assets as on the Closing Date.The Company has received advance of Rs.381.13 Crore (previous year Rs.373 Crore) from JSW Energy against the same.

In order to streamline cash flows of the group and create SPV amenable for, the Board of Directors of the Company and JPL have in principle approved the restructuring involving parent Company and JPL and formed a committee of directors (“Restructuring Committee”), to explore and evaluate various restructuring opti ons available including a scheme of arrangement. The restructuring will entail that 1000 MW Power Plant owned by JPL is hived off into an separate purpose vehicle, being subsidiary of the parent company, creati on of other SPV amenable for monetizati on by way of divestments as well as achieve better synergy across the parent company and its subsidiaries, and to ensure that the businesses of these entities are operated in the most efficient and cost effective manner, including by pooling of technical, distribution and marketing skills, creating optimal utilisation of resources, better administration and cost reduction. Upon completion of evaluation of the possible arrangement options, the Restructuring Committee is to submit its recommendations to the Board of Directors and to such other committee(s) of the Board, including the Audit Committee, shareholders as may be required by applicable laws.

21. During the previous financial year, the Board of Directors of the Company approved sale of certain captive power plants (CPP) to Jindal Power Limited (JPL) a subsidiary company situated at Angul, Odisha (6x135 MW) and at Raigarh, Chattisgarh (2x55 MW) aggregating to 920 MW at a fair market value determined by independent valuer appointed by the Board of Directors amounting to Rs.5,275 Crore; which is subject to necessary approvals to be arranged by the Company. The Company has received interest free advance against above of Rs.2,854 Crore (previous year Rs.2854 Crore).

22. Exceptional items:

i) During the year, the Company divested its oxygen plant assets at its integrated steel plants at Raigarh (Chattisgarh) and Angul (Odisha), resulting in loss of Rs.149.72 Crore, which has been included in exceptional items.

ii) Pursuant to the judgement of the Hon’ble Supreme Court of India in Common Cause Vs Union of India and others dated 2.8.2017, the Company was again heard on 14.12.2017 and directed to pay additional compensation of Rs.137.82 Crore for its iron ore mines at Tensa, which has been included in exceptional items.

iii) The Company had been making payment of royalty on iron ore fines at the rate of royalty applicable on iron ore lumps (differential royalty). In view of the adverse judgment dated 16.12.2015 of the Hon’ble Odisha High Court in the case of Mideast Integrated Steel Co. Ltd. Vs. State of Odisha (W.P.(C) No. 17403 of 2012) taking a contrary view, against which they (MESCO) had filed Special Leave Petition in Hon’ble Supreme Court. The Company is also facing similar issue and thus intervened in the above petition filed by MESCO which is currently sub judice. The Company has thus charged the demand raised on account of differential royalty by the Mining Authority of Rs.223.70 Crore to the profit and loss account as an exceptional item.

iv) The Rajasthan High Court in the case of Udaipur Chambers of Commerce and Industry & Ors. Vs. The Union of India & Anr (Civil Writ Petition No. 14578 / 2016) vide order dated 24.10.2017 has held that service tax is applicable on amount of royalty payable on mining of natural resources. Special Leave Petition against the said judgment are presently pending before the Hon’ble Supreme Court. The company has been advised in view of adverse judgment of the Rajasthan High Court, unless reversed/ set aside by the Supreme Court, the Company shall be required to pay service tax of Rs.14.87, which had accordingly been charged to the profit and loss account as exceptional item.

v) Pursuant to the judgement of the Hon’ble Supreme Court dated 9.10.2017, the Company has paid/ provided for entry tax on import of goods in the state of Odisha. The amount of entry tax Rs.67.31 Crore (including interest Rs.42.07) has been included in the exceptional items.

vi) During the year, the Company sold its entire stake in M/s. Nalwa Steel & Power Limited, an Associate Company and the profit on its sale amounting to Rs.249.40 Crore is included under exceptional item.

23. Revenue from operations for the period up to 30th June, 2017 includes excise duty, which is discontinued effective from 1st July 2017 upon implementation of Goods and Services Tax (GST). In accordance with IND AS-18, Revenue Recognition, GST is not included in the revenue from operations during the period 1st July, 2017 to 31st March, 2018. The revenue for the year ended 31st March, 2017 is inclusive of excise duty. In view of the aforesaid change, revenue form operation for the year ended 31st March, 2018 is not comparable with previous year.

24. During the year Blast furnance and Coke Oven Plant at Angul, Odisha have been commissioned.

25. Operating lease commitments

The company has divested its oxygen plant assets at its interegated steel plant at Raigarh (Chaffisgarh) and Angul (Odisha). The company has also entered into lease back agreement for operating lease with the buyer of the oxygen plant assets for continued operation by the company for manufacturing of steel at respective plants. The Future minimum lease payment are as follows:-

On expiry of lease term the Company will have option to renew the agreement, or purchase the equipment at fair value or return the equipment to the lessor.

In case of renewal of the agreement the rent shall be mutually agreed with the lessor.

26. Balances of certain advances, creditors and receivables are in process of confirmation/reconciliation.

27. The Company has raised Rs.1200 Crore (Rs.11,99,99,99,785) by way of Qualified Institutions Placement (QIP) of 5,15,02,145 equity shares of Rs.1 each fully paid up at issue price of Rs.233 each (including premium of Rs.232 per share). The net proceeds of the issue have been utilised for the purposes for which the issue was made and unutilised amount of Rs.482 Crore has been parked in working capital.

28. Information related to Consolidated financial

The company is listed on stock exchanges in India. The Company has prepared consolidated financial statements as required under IND AS 110, Sections 129 of Companies Act, 2013 and listing requirements. The consolidated financial statements are available on the Company’s website for public use.

29. Previous year figures have been regrouped/ rearranged / recast, wherever considered necessary to conform to current year’s classification. Figures less than 50000 have been shown as absolute number.

30. Notes 1 to 70 are annexed to and form an integral part of the financial statements.


Mar 31, 2017

Note-

Project Loan of Rs, 7215.34 crore outstanding as on 30th Nov 2015 (including loan of Rs, 57.26 crore from IDBI Bank where documentation under 5/25 scheme of RBI is in progress as on balance sheet date) were elongated under the 5/25 Scheme (outstanding as on 31st March, 2017 Rs, 7,157.81 crore). The company is in process of execution of Joint Documentation with lenders to effect the sanctioned restructuring scheme. On completion of Joint Documentation, security against the stated loans along with debentures (refer para: ""Debenture""

i & ii, ""Term Loan from Bank"" i, iv, v and ""other Loans"") shall be modified to first charge on pari-passu basis over the movable and immovable fixed assets (ISP, DRI, CPP and other miscellaneous assets etc.) {including all the project contracts (including insurance policies, rights, titles etc.)} both present and future of Plant Phase 1A at Angul, Odisha of the company in favour of the Debenture Trustees/lenders.

External Commercial Borrowings

ECB from Mizuho Bank Limited of Rs, 113.47 crore (Previous year Rs, 149.24 crore) repayable in a period of 2 years, in 9 quarterly installments starting from March 30, 2016 are secured (Charge to be created) by way of a first pari passu charge on all the present movable and immovable fixed assets of 1.5 MTPA Integrated Steel Plant including 1.2 MTPA Plate Mill project ,

1.8 MTPA DRI facility, 810 MW Captive Power Plant at Angul including movable plant & machinery, spares, tools and accessories, furniture, fixtures and the miscellaneous fixed assets of the plant phase 1A at Angul.

Buyer''s credit

Loans Rs, 660.10 crore ( Previous Year Rs,798.10 crore) are secured by First ranking pari-passu charge by way of hypothecation over all of the company''s current assets, including aggregate rupee value of the company''s cash and bank balances, investments (of which return of principal is guaranteed), advance paid, raw materials, finished and semi-finished goods, consumable stores, spares, stock in progress, bills of lading, airways bills, railways receipt (RR), good receipt (GR), motor transport receipts (MTR) or such other receipts (issued by approved carrier carrying consignment of raw material/consumable spares), irrevocable letter of credit, receivables, book debts and consumable stores (including those stored at company''s work at Raigarh and Raipur, Chhattisgarh) and include any money owing to it and payable on demand or within 1 (one) year from the date of computation, in whatsoever currency denominated or as otherwise defined/classified by guidelines of the RBI from time to time in force or any other applicable law and all other current assets which are required to be classified as such as per applicable law, both present and future and second ranking pari passu charge (charge created/ to be created) over the entire fixed assets, both movable & immovable of the company [except the fixed assets related to 1x368 tonnes per day, 2x380 tonnes per day (both at Raigarh) and 2x1200 tonnes per day (at Angul) Oxygen Plants of the Company]. The Company is availing the buyer''s credit for capex as per the guidelines of RBI.

The interest rate for the above term loans from banks and others (excluding penal interest) varies from 10.50% to 13% p.a The interest rate for the above External Commercial Borrowings is 3.24%.p.a The weighted average rate of interest for buyers credit is 1.59%p.a.

Debentures

1. Debentures of '' NIL (Previous Year Rs, 300 crore) placed initially with HDFC Bank Limited on private placement basis are redeemable at par at the end of 3 years from the date of allotment i.e. 05.04.2013.

2. Debentures of Rs, 300 crore (Previous Year Rs, 300 crore) placed initially with ICICI Bank Limited on private placement basis are redeemable at par at the end of 5 years from the date of allotment i.e. 11.08.2014.

3. Debentures ofRs, 1000 crore (Previous Year Rs, 1000 crore) placed initially with Kotak Mahindra Bank on private placement basis are redeemable at par in 3 installments, Rs, 330 crore at the end of 4 years, Rs, 330 crore at the end of 5 years and Rs, 340 crore at the end of 6 years from the date of allotment i.e. 18th December, 2014.

4. Debentures of Rs, 750 crore (Previous Year Rs, 750 crore) placed initially with HDFC Bank Limited on private placement basis are redeemable at par at the end of 6 years from the date of allotment i.e. 11.03.2015.

External Commercial Borrowings

1. ECA from Credit Agricole CIB of Rs, 1.51 crore (Previous Year Rs, 4.92 crore) at year end rate repayable in 14 half yearly installments starting from October 21, 2010.

2. ECA from Credit Agricole CIB of Rs, 23.28 crore (Previous Year Rs, 50.50 crore) at year end rate repayable in 16 half yearly installments starting from May 25, 2010.

3. ECA from Credit Agricole CIB of Rs, 69.53 crore (Previous Year Rs, 84.83 crore) at year end rate repayable in 20 half yearly installments starting from March 9, 2011.

4. ECA from Credit Agricole CIB of Rs, NIL (Previous Year Rs, 3.77 crore) at year end rate repayable in 14 half yearly installments starting from June 21, 2010.

5. ECB from ICICI Bank Limited of Rs, 107.14 crore (Previous Year Rs, 145.56 crore) at year end rate repayable in 15 half yearly installments starting from March 11, 2011.

Cash Credit from Bank and Buyer''s Credit

i) First ranking pari-passu charge by way of hypothecation over all of the company''s current assets, including aggregate rupee value of the company''s cash and bank balances, investments (of which return of principal is guaranteed), advance paid, raw materials, finished and semi-finished goods, consumable stores, spares, stock in progress, bills of lading, airways bills, railways receipt (RR), good receipt (GR), motor transport receipts (MTR) or such other receipts (issued by approved carrier carrying consignment of raw material/consumable spares), irrevocable letter of credit, receivables, book debts and consumable stores (including those stored at company''s work at Raigarh and Raipur, Chhattisgarh) and include any money owing to it and payable on demand or within 1 (one) year from the date of computation, in whatsoever currency denominated or as otherwise defined/classified by guidelines of the RBI from time to time in force or any other applicable law and all other current assets which are required to be classified as such as per applicable law, both present and future and second ranking pari passu charge (charge created/ to be created) over the entire fixed assets, both movable & immovable of the company [except the fixed assets related to 1x368 tonnes per day, 2x380 tonnes per day (both at Raigarh) and 2x1200 tonnes per day (at Angul) Oxygen Plants of the Company]. The cash credit is repayable on demand.

ii) Loans of Rs, 562.50 crore (Previous year Rs, 562.50 crore) are secured by subservient charge by way of hypothecation of current assets of the Company comprising of book debts and stocks.

Note

The weigthed average rate of interest for cash credit is 10.90% p.a.

The weigthed average rate of interest for secured short term loans is 12.00 % p.a.

The weigthed average rate of interest for Other Loans from Bank (Buyer''s Credit) is 1.64 % p.a.

The average rate of interest for Inter Corporate Deposit is 10.05% p.a.

The weigthed average rate of interest for unsecured short term loans is 10.89 % p.a.

1. As per Ind AS 108 Operating Segment, segment information has been provided in notes to consolidated financial statements.

2. Pursuant to the Judgment dated 25.08.2014 read with Order dated 24.09.2014 passed by the Hon''ble Supreme Court the allocation of the coal blocks, Gare Palma IV/1 (operational); Utkal B-1, Amarkonda Murgadangal, Gare Palma IV/6, Ramchandi, Urtan North and Jitpur (non-operational) to the Company/its joint ventures stand de-allocated. Prior to the said de-allocation by the Hon''ble Supreme Court, the Government had invoked bank guarantees provided by the Company to the extent of Rs, 153.55 crore with respect to Ramchandi, Amarkonda Murgadangal and Jitpur Coal Blocks. These matters, besides the matters with respect to Urtan North and Gare Palma IV/6 coal blocks, were contested by the Company at various levels and the invocation of the said bank guarantees had been stayed by the respective Hon''ble High Courts. Bank guarantees amounting to '' 155.00 crore have been provided by the Company for the above mentioned non-operational coal blocks.

Pursuant to the said de-allocation by the Hon''ble Supreme Court and pending the decision/s of the Ministry of Coal on the show cause notices issued by the Ministry of Coal calling upon the Company to show cause as to why the delay in the development of the non-operational coal blocks should not be held as violation of the terms and conditions of the allocation letters of the said coal blocks, the respective Hon''ble High Courts have required the Company to keep the said Bank Guarantees alive pending the decision of the Government (Ministry of Coal) in individual case. The High Courts have restrained the Ministry of Coal to act in furtherance of its subsequent decision/s, to invoke the bank guarantee/s, for a further period of two weeks'' time from the date of the communication of such decision/s in order to enable the Company to challenge such decision/s of the Ministry of Coal. In the meantime, the invocation of the bank guarantees has been stayed by the Hon''ble High Courts.

The Company believes that it has good case in respect to this matter and hence no provision is considered necessary.

The Company''s interests in the above Joint Ventures is reported as Non-Current Investments (Note-8(a)) and stated at cost. However, the Company''s share of assets, liabilities, income and expenses, etc. (each without elimination of the effect of transactions between the Company and the joint ventures) related to its interest in the Joint Ventures are:

Fair value hierarchy

The Company uses the following hierarchy for fair value measurement of the company''s financial assets and liabilities :

Level 1: Quoted prices/NAV (unadjusted) in active markets for identical assets and liabilities at the measurement date.

Level 2: Other techniques for which all inputs which have a significant effect on the recorded fair value are observable, either directly or indirectly.

Level 3: techniques which use inputs that have a significant effect on the recorded fair value that are not based on observable market data. The following table provides the fair value measurement hierarchy of Company''s asset and liabilities, grouped into Level 1 to Level 3:

During the year ended March 31, 2017 and March 31, 2016, there were no transfers between Level 1 and Level 2 fair value measurements, and no transfer into and out of Level 3 fair value measurements.

Fair valuation of financial guarantees

Financial guarantees issued by the company on behalf of its overseas subsidiaries have been measured at fair value through profit and loss account. Fair value of said guarantees as at March 31, 2017, March 31, 2016 and April 1, 2015 have been considered at nil as estimated by the management and an independent professional.

Fair valuation techniques

The Company maintains policies and procedures to value financial assets or financial liabilities using the best and most relevant data available. The fair values of the financial assets and liabilities are included at the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

The following methods and assumptions were used to estimate the fair values:

1) Fair value of cash and deposits, trade receivables, trade payables, and other current financial assets and liabilities approximate their carrying amounts largely due to the short-term maturities of these instruments.

2) Long-term fixed-rate and variable-rate receivables / borrowings are evaluated by the Company based on parameters such as interest rates, specific country risk factors, credit risk and other risk characteristics. Fair value of variable interest rate borrowings approximates their carrying values. For fixed interest rate borrowing fair value is determined by using the discounted cash flow (DCF) method using discount rate that reflects the issuer''s borrowings rate. Risk of non-performance of the Company is considered to be insignificant in valuation.

3) The fair values of derivatives are estimated by using pricing models, where the inputs to those models are based on readily observable market parameters basis contractual terms, period to maturity, and market parameters such as interest rates, foreign exchange rates, and volatility. These models do not contain a high level of subjectivity as the valuation techniques used do not require significant judgment, and inputs thereto are readily observable from actively quoted market prices. Management has evaluated the credit and non-performance risks associated with its derivative counterparties and believe them to be insignificant and not warranting a credit adjustment.

4) Ind AS 101 allow Company to fair value property, plant and machinery on transition to Ind AS, the Company has fair valued property, plant and equipment, and the fair valuation is based on replacement cost approach.

3. Financial Risk Management

The Company''s principal financial liabilities, other than derivatives, comprise borrowings, trade and other payables, and financial guarantee contracts. The main purpose of these financial liabilities is to manage finances for the Company''s operations. The Company''s financial assets comprise investments, loan and other receivables, trade and other receivables, cash, and deposits that arise directly from its operations.

The Company''s activities are exposed to market risk, credit risk and liquidity risk. In order to minimize adverse effects on the financial performance of the Company, derivative financial instruments such as forward contracts are entered into to hedge foreign currency risk exposure. Derivatives are used exclusively for hedging purposes and not as trading and speculative purpose.

I. Market risk

Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Market prices comprise three types of risk: currency rate risk, interest rate risk and other price risks, such as equity price risk and commodity risk. Financial instruments affected by market risk include loans and borrowings, deposits, investments, and derivative financial instruments. The sensitivity analysis in the following sections relate to the position as at 31st March 2017 and 31st March 2016. The analysis exclude the impact of movements in market variables on: the carrying values of gratuity and other post-retirement obligations; provisions. The sensitivity of the relevant profit or loss item is the effect of the assumed changes in respective market risks. The Company uses derivative financial instruments such as foreign exchange forward contracts of varying maturity depending upon the underlying contract and risk management strategy to manage its exposures to foreign exchange fluctuations.

(a) Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. In order to optimize the Company''s position with regard to interest income and interest expenses and to manage the interest rate risk, the Company performs a comprehensive corporate interest rate risk management by balancing the proportion of the fixed rate and floating rate financial instruments in its total portfolio .

The Assumed movement in basis point for interest rate sensitivity analysis is based on currently observable market environment

(b) Foreign currency risk

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. The Company transacts business primarily in Indian Rupees and US dollars. The Company has obtained foreign currency loans and has foreign currency trade payables and receivables and is therefore exposed to foreign exchange risk. Certain transactions of the Company act as a natural hedge as a portion of both assets and liabilities are denominated in similar foreign currencies. For the remaining expore to foreign exchange risk the Company adopts a policy of selective hedging based on risk perception of the management. Foreign exchange contracts are carried at fair value. The Company hedges its exposure to fluctuations by using foreign currency forwards contracts on the basis of risk perception of the management.

The assumed movement in exchange rate sensitivity analysis is based on the currently observable market environment by the management.

(c) Commodity Price Risk

Commodity Price Risk is the risk that future cash flow of the Company will fluctuate on account of changes in market price of key raw materials.

The Company is exposed to the movement in price of key raw materials in domestic and international markets. The Company has in place policies to manage exposure to fluctuations in the prices of the key raw materials used in operations. The Company enters into contracts for procurement of materials, most of the transactions are short term fixed price contract and a few transactions are long term fixed price contracts.

Credit risk

Credit risk arises from the possibility that the counterparty will default on its contractual obligations resulting in financial loss to the Company. To manage this, the Company periodically assesses the financial reliability of customers, taking into account the financial conditions, current economic trends, and analysis of historical bad debts and ageing of accounts receivable. The Company considers the probability of default upon initial recognition of assets and whether there has been a significant increase in credit risk on an ongoing basis through each reporting period. To assess whether there is significant increase in credit risk, it considers reasonable and supportive forward looking information such as:

(i) Actual or expected significant adverse changes in business.

(ii) Actual or expected significant changes in the operating results of the counterparty.

(iii) Financial or economic conditions that are expected to cause a significant change to the counterparty''s ability to meet its obligation

(iv) Significant increase in credit risk and other financial instruments of the same counterparty

(v) Significant changes in the value of collateral supporting the obligation or in the quality of third party guarantees or credit enhancements.

III. Liquidity Risk

Liquidity risk refers to risk of financial distress or extra ordinary high financing cost arising due to shortage of liquid funds in a situation where business conditions unexpectedly deteriorate and require financing. The Company''s objective is to maintain at all times optimum levels of liquidity to meet its cash and collateral requirements. Processes and policies related to such risk are overseen by senior management and management monitors the Company''s net liquidity position through rolling forecast on the basis of expected cash flows.

4. Capital Risk Management

The Company manages its capital structures and makes adjustment in light of changes in economic conditions and requirements of financing covenants. To this end the Company may adjust the dividend payment to shareholders, return capital to shareholders or issue new shares.

The primary objective of the Company''s Capital Management is to maximize the shareholder value by maintaining an efficient capital structure and healthy ratios and safeguard Company''s ability to continue as a going concern. The Company also works towards maintaining optimal capital structure to reduce the cost of capital. No changes were made in the objectives, policies, process during the year ended 31st March, 2017 and 31st March, 2016.

Notes-

(i) Debt is defined as long-term and short-term borrowings including current maturities (excluding derivatives and financial guarantee contracts) as described in notes 23 and 27.

(ii) Equity includes all capital and reserves of the Company that are managed as capital.

5. Related Party disclosures as per Ind AS 24

A. List of Related Parties and Relationships

a) Subsidiaries, Step down Subsidiaries

I. Subsidiaries

1 Jindal Power Limited

2 Jindal Steel Bolivia SA

3 Jindal Steel & Power (Mauritius) Limited

4 Skyhigh Overseas Limited

5 Everbest Steel and Minings Holdings Limited

6 Jindal Angul Power Limited

7 JB FabInfra Limited

8 Trishakti Real Estate Infrastructure and Developers Limited

9 Raigarh Pathalgaon Expressway Ltd. [w.e.f. 18th 0ctober,2016

II. Subsidiaries of Jindal Power Limited

1 Attunli Hydro Electric Power Company Limited

2 Etalin Hydro Electric Power Company Limited

3 Jindal Hydro Power Limited

4 Jindal Power Distribution Limited

5 Ambitious Power Trading Company Limited

6 Jindal Power Transmission Limited

7 Jindal Power Ventures (Mauritius) Limited

8 Kamala Hydro Electric Power Co. Limited

9 Kineta Power Limited

10 Uttam Infralogix Limited

11 Jindal Realty Private Limited [w.e.f. 31st March 2017]

12 Panther Transfreight Limited, a subsidiary of Uttam Infralogix limited

III. Subsidiary of Skyhigh Overseas Limited

1 Gas to Liquids International S.A

IV. Subsidiary of Jindal Power Ventures (Mauritius) Limited

1 Jindal Power Senegal SAU

V. Subsidiary of JB FabInfra Private Limited

1 All tech Building System Limited

VI. Subsidiaries of Jindal Steel & Power (Mauritius) Limited

1 Blue Castle Ventures Limited

2 Brake Trading (Pty) Limited

3 Enduring Overseas Inc

4 Fire Flash Investments (Pty) Limited

5 Harmony Overseas Limited

6 Jin Africa Limited

7 Jindal (BVI) Limited

8 Jindal Africa Investments (Pty) Limited

9 Jindal Africa Liberia Limited

10 Jindal Africa SA

11 Jindal Botswana (Pty) Limited

12 Jindal Investimentos LDA

13 Jindal Investment Holding Limited.

14 Jindal KZN Processing (Pty) Limited

15 Jindal Madagascar SARL

16 Jindal Mining & Exploration Limited

17 Jindal Mining Namibia (Pty) Limited

18 Jindal Steel & Minerals Zimbabwe Limited

19 Jindal Steel & Power (BC) Limited

20 Jindal Steel and Power(Australia) Pty Limited

21 Jindal Tanzania Limited

22 Jindal Zambia Limited

23 JSPL Mozambique Minerais LDA

24 Jublient Overseas Limited

25 Landmark Mineral Resources (Pty) Limited

26 Osho Madagascar SARL

27 PT Jindal Overseas

28 Jindal Shadeed Iron & Steel L.L.C

29 Sungu Sungu Pty Limited

30 Trans Asia Mining Pte. Limited

31 Vision Overseas Limited

32 Wollongong Coal Limited

33 Jindal Steel DMCC

34 Jindal Mauritania SARL

VII. Others

1 Belde Empreendimentos Mineiros LDA, a subsidiary of JSPL Mozambique Minerais LDA

2 Eastern Solid Fuels (Pty) Limited, a subsidiary of Jindal Mining

& Exploration Limited

3 PT BHI Mining Indonesia, a subsidiary of Jindal Investment Holding Limited

4 PT Sumber Surya Gemilang, a subsidiary of PT.BHI Mining Indonesia

5 PT Maruwai Bara Abadi, a subsidiary of PT.BHI Mining Indonesia

6 Jindal Mining SA (Pty) Limited, a subsidiary of Eastern Solid Fuels (Pty) Limited

7 Bon-Terra Mining (Pty) Limited,a subsidiary of Jindal (BVI) Limited

8 CIC (Barbados) Holding Corp,a subsidiary of Jindal (BVI) Limited

9 CIC Energy (Bahamas) Limited,a subsidiary of Jindal (BVI) Limited

10 Jindal Energy (Botswana) Pty Limited,a subsidiary of Jindal (BVI) Limited

11 Jindal Energy (SA) Pty Limited, a subsidiary of Jindal (BVI) Limited

12 CIC Transafrica (Barbados) Corp,a subsidiary of Jindal (BVI) Limited

13 Jindal Resources (Botswana) Pty Limited,a subsidiary of CIC Transafrica (Barbados) Corp

14 Trans Africa Rail (Pty) Limited, a subsidiary of CIC Transafrica (Barbados) Corp

15 Sad-Elec (Pty) Limited, a subsidiary of Jindal Energy (SA) Pty Limited

16 CIC (Barbados) Mining Corp, a subsidiary of CIC (Barbados) Holding Corp

17 CIC (Barbados) Energy Corp,a subsidiary of CIC (Barbados) Holding Corp

18 Meepong Resources (Mauritius) (Pty) Limited, a subsidiary of CIC (Barbados) Mining Corp

19 Meepong Resources (Pty) Limited, a subsidiary of Meepong Resources (Mauritius) (Pty) Limited

20 Meepong Energy (Mauritius) (Pty) Limited, a subsidiary of CIC (Barbados) Energy Corp

21 Meepong Energy (Pty) Limited, a subsidiary of Meepong Energy (Mauritius) (Pty) Limited

22 Meepong Service (Pty) Limited, a subsidiary of Meepong Energy (Pty) Limited

23 Meepong Water (Pty) Limited, a subsidiary of Meepong Energy (Pty) Limited

24 Peerboom Coal (Pty) Limited ,a subsidiary of Jindal Africa Investment (Pty) Limited

25 Shadeed Iron & Steel Company Limited, a subsidiary of Jindal Shadeed Iron & Steel LLC

26 Southbulli Holding Pty Limited, a subsidiary of Wollongong Coal Limited

27 Oceanic Coal Resources NL, a subsidiary of Wollongong Coal Limited

28 Wongawilli Coal Pty Limited, a subsidiary of Oceanic Coal Resources NL

29 Koleko Resources (Pty) Limited, a subsidiary of Jindal Africa Investment (Pty) Limited

30 Legend Iron Limited, a subsidiary of Jindal Mining & Exploration Limited

31 Cameroon Mining Action (CAMINA) SA, a subsidiary of Legend Iron Limited

32 Enviro Waste Gas Services Pty Ltd., a subsidiary of Wollongong Coal Limited

b) Associates

1 Nalwa Steel & Power Limited

2 Prodisyne (Pty) Limited

3 Thuthukani Coal (Pty) Limited

c) Joint Ventures

1 Jindal Synfuels Limited

2 Shresht Mining and Metals Private Limited

3 Urtan North Mining Private Limited

d) Other Significant influences

1 OPJ Trading Private Limited

e) Key Managerial person

1 Shri Naveen Jindal (Chairman )

2 Shri Ravi Uppal (Managing Director & Group CEO )

3 Shri D.K. Saraogi (Wholetime Director)

4 Shri Rajeev Bhadauria (Wholetime Director)

5 Shri Rajesh Bhatia (Chief Financial Officer w.e.f 22 Nov 2016)

6 Shri K Rajagopal (Group Chief Financial Officer till 21 Nov 2016)

7 Shri Murli Manohar Purohit (Company Secretary w.e.f 10 Oct 2016)

8 Shri Jagdish Patra (Company Secretary till 11 Jul 2016)

f) Enterprises over which Key Management Personnel and their relatives excercise significant influence and with whom transactions have taken place during the year

1 Jindal Stainless Ltd

2 Jindal Industries Limited

3 Bir Plantation Limited

4 India Flysafe Aviation Limited

5 Minerals Management Service (India) Pvt. Ltd.

6 Jindal Saw Limited

7 JSW Steel Limited

8 Rohit Tower Building Limited

9 JSW Energy Limited

10 JSW Projects Limited

11 JSW Steel Coated Product Ltd.

12 JSW Severfield Structures Ltd.

13 Jindal Realty Private Limtied (Upto 30 March 2017, subsidiary wef 31 March 2017)

g) Post-Employment Benefit entity

1 Jindal Steel & Power Ltd EPF Trust

6. Impairment Review

Assets are tested for impairment whenever there are any internal or external indicators of impairment.

Impairment test is performed at the level of each Cash Generating Unit (''CGU'') or groups of CGUs within the Company at which the goodwill or other assets are monitored for internal management purposes, within an operating segment.

The impairment assessment is based on higher of value in use and value from sale calculations.

During the year, the testing did not result in any impairment in the carrying amount of goodwill and other assets.

The measurement of the cash generating units'' value in use is determined based on financial plans that have been used by management for internal purposes. The planning horizon reflects the assumptions for short to- mid term market conditions.

Key assumptions used in value-in-use calculations:

- Operating margins (Earnings before interest and taxes)

- Discount Rate

- Growth Rates

- Capital expenditures

Operating margins: Operating margins have been estimated based on past experience after considering incremental revenue arising out of adoption of valued added and data services from the existing and new customers, though these benefits are partially offset by decline in tariffs in a hyper competitive scenario. Margins will be positively impacted from the efficiencies and initiatives driven by the Company; at the same time, factors like higher churn, increased cost of operations may impact the margins negatively.

Discount rate: Discount rate reflects the current market assessment of the risks specific to a CGU or group of CGUs. The discount rate is estimated based on the weighted average cost of capital for respective CGU or group of CGUs.

Growth rates: The growth rates used are in line with the long term average growth rates of the respective industry and country in which the Company operates and are consistent with the forecasts included in the industry reports.

Capital expenditures: The cash flow forecasts of capital expenditure are based on past experience coupled with additional capital expenditure required.

7. The Hon''ble Supreme Court of India by its Order dated 24 September 2014 cancelled number of coal blocks allocated to the Company by Ministry of Coal, Government of India and directed to pay an additional levy of Rs, 295 per MT on gross coal extracted. The Company has paid under protest such levy on coal extracted during the period from 1993 to 31 March 2015 of Rs, 2,082.23 crore. The management based on legal opinion has charged to the statement of profit and loss ,as exceptional item during the year 2014-15 for Rs, 807.77 crore computed on net extraction (run of mines less shale, rejects and ungraded middling) of coal by the Company. The balance amount of Rs, 1,274.46 crore has been shown as recoverable from the Government Authority since the entire amount of additional levy has been paid under protest.

8. The Company has net book value of investment made in mining assets including land, infrastructure and clearance etc. of Rs, 425 crore and filed claim for the same pursuant to directive vide letter dated 26 December , 2014 given by the Ministry of Coal on such mines . Meanwhile the Ministry of Coal has made interim payment to the Company of Rs, 22.72 crore towards the same. Pending final settlement of the aforesaid claim, this amount has been accounted for as advance.

9. The Company has filed legal suits /notices or in the process of filing legal case /sending legal notices / making efforts for recovery of debit balances of Rs, 218.62 crore (P.Y. 2015 16 Rs, 498.64 crore) plus interest wherever applicable, which are being carried as long term /short term advances, trade receivables and other recoverable. Pending outcome of legal proceedings/Company ''s efforts for recovery and based on legal advice in certain cases , the Company has considered aforesaid amounts as fully recoverable. Hence, no provision has been made in respect of these balances.

10. Subject to customary regulatory approvals and other conditions precedent(s), the Board of Directors at its meeting held on 3rd May,2016 has approved the agreement for divestment of 1,000 MW Power unit of Jindal Power Limited (a subsidiary of the Company (JPL)), located in Chhattisgarh into a separate purpose vehicle (SPV), for the purpose of transferring the same to JSW Energy Limited through sale of the entire share capital and other securities of the aforesaid entity in terms of the share purchase agreement for an enterprise value of Rs, 6,500 crore plus the value of Net Current Assets as on the Closing Date. The valuation may vary based upon the achievement of PPA''s before the closing date 30th June, 2018 and as prescribed in the Agreement subject to minimum of Rs, 4,000 crore plus the value of Net Current Assets as on the Closing Date. The Company has received advance of Rs, 373.00 crore from JSW Energy against the same.

In order to streamline cash flows of the group and create SPV amenable for, the Board of Directors of the Company and JPL have in principle approved the restructuring involving parent Company and JPL and formed a committee of directors ("Restructuring Committee"), to explore and evaluate various restructuring options available including a scheme of arrangement. The restructuring will entail that 1000 MW Power Plant owned by JPL is hived off into an separate purpose vehicle, being subsidiary of the parent company, creation of other SPV amenable for monetization by way of divestments as well as achieve better synergy across the parent company and its subsidiaries, and to ensure that the businesses of these entities are operated in the most efficient and cost effective manner, including by pooling of technical, distribution and marketing skills, creating optimal utilization of resources, better administration and cost reduction. Upon completion of evaluation of the possible arrangement options, the Restructuring Committee is to submit its recommendations to the Board of Directors and to such other committee(s) of the Board, including the Audit Committee, shareholders as may be required by applicable laws.

11. During the previous financial year, the Board of Directors of the Company approved sale of certain captive power plants (CPP) to Jindal Power Limited (JPL) a subsidiary company situated at Angul, Odisha (6x135 MW) and at Raigarh, Chattisgarh (2x55 MW) aggregating to 920 MW at a fair market value determined by independent valuer appointed by the Board of Directors amounting to Rs, 5,275 crore; which is subject to necessary approvals to be arranged by the Company. The Company has received interest free advance against above of Rs, 2,854 crore.

12. The company has considered fair value of Property plant and equipment (fair value as assessed by independent valuer) i.e. Land, Building and plant & machinery (PPE) in accordance with stipulation of Ind AS 101 with resulted impact been given and accounted for in reserves, Accordingly on fair value of assets as cost on transition date (1st April 2015) as per option available in Ind AS and being increase in value (net) in PPE of Rs, 16,520.53 crore and useful life (as assessed and estimated by the management and a technical valuer), depreciation reflected in statement of profit & loss of current year is higher by Rs, 590.52 crore for the year ended 31st March 2017 and to that extent loss is higher.

13. Hon''ble Supreme Court of India, in its recent judgment has upheld constitutional validity of entry tax levied by the different State Governments and referred the same to divisional/ regular benches for testing and determination of validity of state legislation vis a vis the Article 304 (a) of the constitution and left open levy of entry tax on goods entering the landmass of India from another country to be determined in appropriate proceedings. Full provision has been made in this regard except in case of import of goods from outside India, where part amount ('' 55.83 crore) of entry tax has been deposited (shown under loans and advances) based on the Order of High Court in other assessor’s case and as advised by an expert (against amount calculated till 31.03.2017 of Rs, 113.96 crore). As advised, no material provision is required to be made on this account . Further Rs, 0.64 crore has been paid subsequent to balance sheet date.

14. Balances of certain advances, creditors and receivables are in process of confirmation/reconciliation.

15. Information related to Consolidated financial

The company is listed on stock exchanges in India. The Company has prepared consolidated financial statements as required under Ind AS 110, Sections 129 of Companies Act, 2013 and listing requirements. The consolidated financial statements are available on the Company''s website for public use.

16. Transition to Ind AS

These Financial Statements, for the year ended 31st March 2017 are the first, the Company has prepared in accordance with Ind AS.

Accordingly, the Company has prepared its financial statement to comply with the Ind AS for the year ending 31st March,

2017, together with the comparative data as at and for the year ended 31st March, 2016, as described in note no. 2. In preparing these financial statements, the Company''s opening balance sheet was prepared as at 1st April, 2015, the date of transition to Ind AS. This note explains the principal adjustments made by the Company in restating its Indian GAAP financial statements, including the balance sheet as at 1st April, 2015 and the financial statements as at and for the year ended 31st March, 2016.

Exemptions Applied

Ind AS 101 First time adoption of Indian Accounting Standards allows first-time adopters certain exemptions from the retrospective application of certain requirements under Ind AS, effective for 1st April 2015 opening balance sheet. The Company has applied the exemptions which have been explained below:

1 Deemed Cost of Property, Plant & Equipment

The Company has elected to measure items of Property, Plant & Equipment (PPE) at the date of transition to Ind AS at their fair value. The Company has used the fair value of PPE, which is considered as deemed cost on transition. Fair valuations are assessed as on 1st April, 2015.

2 Fair value of financial assets and liabilities

The Company has financial receivables and payables that are non-derivative financial instruments. Under previous GAAP, these were carried at transactions cost less allowances for impairment, if any. Under Ind AS, these financial assets and liabilities are initially recognized at fair value and subsequently measured at mortised cost, less allowance for impairment, if any. For transactions entered into on or after the date of transition to Ind AS, the requirement of initial recognition at fair value is applied prospectively.

3 Long Term Foreign Currency Monetary items

The Company has opted to continue the policy adopted for accounting for exchange differences arising from translation of long term foreign currency monetary items recognized in the financial statements for the period ending immediately before the beginning of the first Ind AS financial reporting period as per the previous GAAP, accordingly the Company has continued the capitalization of foreign exchange gain/loss on long term loan outstanding on the date of transition i.e April 1st 2015 and such capitalized amount is mortised over the remaining useful life of the asset.

4 Investments in Subsidiaries, joint ventures and associates

The Company has elected to apply previous GAAP carrying amount of its investment in equity shares in subsidiaries, associates and joint ventures as deeemed cost as on the date of transition to Ind AS. However, the debt instruments in subsidiaries, associates and joint ventures are recognized at amortized cost.

5 Leases

The Company has applied the transition provision in Appendix C of Ind AS 17, "Determining whether an arrangement contains a Lease", and has assessed all arrangement as at the date of transition.

Estimates

The estimates at 1st April, 2015 and at 31st March, 2016 are consistent with those made for the same dates in accordance with Indian GAAP (after adjustments to reflect any differences if any, in accounting policies) apart from the following items where application of Indian GAAP did not require estimation:

- Impairment of financial assets based on expected credit loss method.

- Investment in debt instruments carried at Amortized Cost.

- Investment in equity instruments carried at Fair value through profit or loss

The estimates used by the Company to present these amounts in accordance with Ind AS reflect conditions as at the transition date and as of 31st March, 2016.

Exceptions to retrospective application of Ind AS

1 Classification and measurement of financial assets

The Company has classified the financial assets in accordance with Ind AS 109 on the basis of facts and circumstances that exists at the date of transition to Ind AS.

2 Derecognistion of financial assets & financial liabilities

The Company has elected to apply the derecognition requirements for financial assets & financial liabilities in accordance with Ind AS 109 prospectively for transactions occurring on or after the date of transition to Ind AS.

Impact of transition to Ind AS

The following is a summary of the effects of the differences between Ind AS and Indian GAAP on the Company''s total equity shareholders'' funds and profit and loss for the financial period for the periods previously reported under Indian GAAP following the date of transition to Ind AS.

17. Notes to the reconciliation of equity as at 1st April 2015 and 31st March 2016 and total comprehensive income for the year ended 31st March 2016

Property, Plant and Equipments carried at deemed cost

The Company has considered fair value as deemed cost of Property Plant and Equipments i.e Land, building and Plant & machinery and re assessed useful life (as assessed and estimated by the management & technical valuer) as on the date of transition to Ind AS i.e 1st April 2015 and impact of Rs, 16520.53 crore in accordance with said stipulations with resulted impact being accounted for in reserves. The depreciation as per Ind AS has been accounted on fair value and on revised useful life.

Investments

Investments other than investment in subsidiaries, joint ventures and associates has been considered at fair value through profit & loss. Investments in subsidiaries, joint ventures and associates: (i) in equity shares has been considered at carrying value as deemed cost;

(ii) other than equity shares has been considered at mortised cost. Difference between the instruments carrying value and mortised cost as at the date of transition has been recognized in retained earnings.

Defined benefit obligation

The impact of change in actuarial assumption and experience adjustments for defined benefit obligation is accounted in Other Comprehensive Income with reversal in profit & loss.

Deferred Tax

The Company has accounted for deferred tax on various adjustment between Indian GAAP and Ind AS as well as on temporary differences between the carrying amount of assets and liabilities in the balance sheet and corresponding tax bases at the tax rate at which they are expected to be reversed. Corresponding net impact has been recognized in retained earnings/profit & loss/Other Comprehensive Income as applicable.

Excise Duty

Under Ind AS, Excise duty on sale of goods is separately presented as expenses. Thus sale of goods under Ind AS for the year ended 31st March 2016 has increased by Rs, 1,996.90 crore with a corresponding increase in other expense.

Foreign currency translation

Under Ind AS, translation difference which were earlier shown as part of equity has been transferred to retained earnings as at 1st April 2015 with reclassification from profit & loss for the year ended 31st March 2016.

Financial assets and Financial Liabilities

Financial assets and financial liabilities have been classified as per Ind AS 109 read with Ind AS 32.

Statement of Cash Flows

The transition from Indian GAAP to Ind AS has not had a material impact on the statement of cash flows.

Discounts

Under Indian GAAP, discounts were recognized as expenses which has been adjusted against the revenue under Ind AS during the year ended 31st March 2016.

Standards issued but not effective yet

In March 2017, the Ministry of Corporate Affairs issued the Companies (Indian Accounting Standards) (Amendments) Rules, 2017, notifying amendments to Ind AS 7, ''Statement of cash flows'' and Ind AS 102, ''Share-based payment.'' These amendments are in accordance with the recent amendments made by International Accounting Standards Board (IASB) to IAS 7, ''Statement of cash flows'' and IFRS 2, ''Share-based payment,'' respectively. The amendments are applicable to the Company from April 1, 2017.

The amendment to Ind AS 7 requires the entities to provide disclosures that enable users of financial statements to evaluate changes in liabilities arising from financing activities, including both changes arising from cash flows and non-cash changes, suggesting inclusion of a reconciliation between the opening and closing balances in the balance sheet for liabilities arising from financing activities, to meet the disclosure requirement.

The Company is evaluating the requirements of the amendment and the effect on the financial statements is being evaluated.

The amendment to Ind AS 102 provides specific guidance to measurement of cash-settled awards, modification of cash-settled awards and awards that include a net settlement feature in respect of withholding taxes.

The Company has an Employee Share Purchase Scheme namely JSPL ESPS 2013; however the said amendment does not have any possible impact on the financials of the Company..

18. Previous year figures have been regrouped/ rearranged / recast, wherever considered necessary to conform to current year''s classification. Figures less than 50000 have been shown as absolute number.

19. Notes 1 to 68 are annexed to and form an integral part of the financial statements.


Mar 31, 2016

1 DISCLOSURE AS REQUIRED BY ACCOUNTING STANDARD (AS-18) ''RELATED PARTY DISCLOSURES''

A. List of Related Parties and Relationships

a) Subsidiaries, Step down Subsidiaries

I. Subsidiaries

1 Jindal Power Limited

2 Jindal Steel Bolivia SA

3 Jindal Steel & Power (Mauritius) Limited

4 Skyhigh Overseas Limited

5 Everbest Steel and Mining Holdings Limited (formerly known as Everbest Infrastructure & Development) (w.e.f. 04.12.2015)

6 Jindal Angul Power Limited (formerly known as JSPL Mining and Steel Limited

7 JB FabInfra Limited (w.e.f 10.10.2014)

8 Trishakti Real Estate Infrastructure and Developers Limited formerly known as Trishakti Real Estate Infrastructure and Developers Private Limited (w.e.f 29.04.2014)

II. Subsidiaries of Jindal Power Limited

1 Attunli Hydro Electric Power Company Limited

2 Etalin Hydro Electric Power Company Limited

3 Jindal Hydro Power Limited

4 Jindal Power Distribution Limited

5 Ambitious Power Trading Company Limited

6 Jindal Power Transmission Limited

7 Jindal Power Ventures (Mauritius) Limited

8 Kamala Hydro Electric Power Co. Limited

9 Kineta Power Limited (formerly known as Kineta Power Private Limited)

10 Uttam Infralogix Limited

III. Subsidiaries of Skyhigh Overseas Limited

1 Gas to Liquids International S.A

IV. Subsidiaries of Jindal Power Ventures (Mauritius) Limited

1 Jindal Power Senegal SAU

V. Subsidiaries of JB FabInfra Private Limited

1 All tech Building System Limited formerly known as JB Fab Green Horizon Infra Limited

VI. Subsidiaries of Jindal Steel & Power (Mauritius) Limited

1 Blue Castle Ventures Limited

2 Brake Trading (Pty) Limited

3 Enduring Overseas Inc

4 Fire Flash Investments (Pty) Limited

5 Harmony Overseas Limited

6 Jin Africa Limited

7 Jindal (BVI) Limited

8 Jindal Africa Investments (Pty) Limited

9 Jindal Africa Liberia Limited

10 Jindal Africa SA

11 Jindal Botswana (Pty) Limited

12 Jindal Investimentos LDA

13 Jindal Investment Holding Limited.

14 Jindal KZN Processing (Pty) Limited

15 Jindal Madagascar SARL

16 Jindal Mining & Exploration Limited

17 Jindal Mining Namibia (Pty) Limited

18 Jindal Steel & Minerals Zimbabwe Limited

19 Jindal Steel & Power (BC) Limited

20 Jindal Steel and Power(Australia) Pty Limited

21 Jindal Tanzania Limited

22 Jindal Zambia Limited

23 JSPL Mozambique Minerais LDA

24 Jublient Overseas Limited

25 Landmark Mineral Resources (Pty) Limited

26 Osho Madagascar SARL

27 PT Jindal Overseas

28 Rolling Hills Resources LLC (under liquidation)

29 Shadeed Iron & Steel L.L.C

30 Sungu Sungu Pty Limited

31 Tablet Blue Trade and Invest (Pty) Limited (Ceased to exist as subsidiary during the current year)

32 Trans Asia Mining Pte. Limited

33 Vision Overseas Limited

34 Wollongong Coal Limited

35 Jindal Steel DMCC (w.e.f 25.08.2014)

36 Jindal Maauritania SARL

Note: Following entities ceased to exist in previous year

JINDAL Brasil Mineragao S/A (ceased to exist as subsidiary w.e.f. 25.03.2015)

Panacore Investment Limited, Mauritius (ceased to exist as subsidiary w.e.f 08.04.2014)

Trans Atlantic Trading Limited (ceased to exist as subsidiary w.e.f. 07.04.2014)

VII. Others

1 Belde Empreendimentos Mineiros LDA, a subsidiary of JSPL Mozambique Minerais LDA

2 Eastern Solid Fuels (Pty) Limited, a subsidiary of Jindal Mining & Exploration Limited

3 Ericure (Pty) Limited, a subsidiary of Tablet blue Trade and Investment (Pty) Limited (Ceased to exist as subsidiary during the current year)

4 PT BHI Mining Indonesia, a subsidiary of Jindal Investment Holding Limited

5 PT Sumber Surya Gemilang, a subsidiary of PT.BHI Mining Indonesia

6 PT Maruwai Bara Abadi, a subsidiary of PT.BHI Mining Indonesia

7 Jindal Mining SA (Pty) Limited, a subsidiary of Eastern Solid Fuels (Pty) Limited

8 Bon-Terra Mining (Pty) Limited,a subsidiary of Jindal (BVI) Limited

9 CIC (Barbados) Holding Corp,a subsidiary of Jindal (BVI) Limited

10 CIC Energy (Bahamas) Limited,a subsidiary of Jindal (BVI) Limited

11 Jindal Energy (Botswana) Pty Limited,a subsidiary of Jindal (BVI) Limited

12 Jindal Energy (SA) Pty Limited, a subsidiary of Jindal (BVI) Limited

13 CIC Transafrica (Barbados) Corp,a subsidiary of Jindal (BVI) Limited

14 Jindal Resources (Botswana) Pty Limited,a subsidiary of CIC Transafrica (Barbados) Corp

15 Trans Africa Rail (Pty) Limited, a subsidiary of CIC Transafrica (Barbados) Corp

16 Sad-Elec (Pty) Limited, a subsidiary of Jindal Energy (SA) Pty Limited

17 CIC (Barbados) Mining Corp, a subsidiary of CIC (Barbados) Holding Corp

18 CIC (Barbados) Energy Corp,a subsidiary of CIC (Barbados) Holding Corp

19 Meepong Resources (Mauritius) (Pty) Limited, a subsidiary of CIC (Barbados) Mining Corp

20 Meepong Resources (Pty) Limited, a subsidiary of Meepong Resources (Mauritius) (Pty) Limited

21 Meepong Energy (Mauritius) (Pty) Limited, a subsidiary of CIC (Barbados) Energy Corp

22 Meepong Energy (Pty) Limited, a subsidiary of Meepong Energy (Mauritius) (Pty) Limited

23 Meepong Service (Pty) Limited, a subsidiary of Meepong Energy (Pty) Limited

24 Meepong Water (Pty) Limited, a subsidiary of Meepong Energy (Pty) Limited

25 Peerboom Coal (Pty) Limited, a subsidiary of Jindal Africa Investment (Pty) Limited

26 Shadeed Iron & Steel Company Limited, a subsidiary of Shadeed Iron & Steel LLC

27 Southbulli Holding Pty Limited, a subsidiary of Wollongong Coal Limited

28 Oceanic Coal Resources NL, a subsidiary of Wollongong Coal Limited

29 Wongawilli Coal Pty Limited, a subsidiary of Oceanic Coal Resources NL

30 Koleko Resources (Pty) Limited, a subsidiary of Jindal Africa Investment (Pty) Limited

31 Legend Iron Limited, a subsidiary of Jindal Mining & Exploration Limited (became subsidiary w.e.f 05.08.2014)

32 Cameroon Mining Action (CAMINA) SA, a subsidiary of Legend Iron Limited (became subsidiary w.e.f 05.08.2014)

33 Legend Cameroon Pty. Limited

Note: Following entities ceased to exist in previous year

Core Ambition Limited, a subsidiary of Panacore Investment Limited (ceased to exist as subsidiary w.e.f 08.04.2014)

Core Forte Limited, a subsidiary of Panacore Investment Limited (ceased to exist as subsidiary w.e.f. 08.04.2014)

Core Integrity Limited, a subsidiary of Panacore Investment Limited (ceased to exist as subsidiary w.e.f. 08.04.2014)

Core Vision Limited, a subsidiary of Panacore Investment Limited (ceased to exist as subsidiary w.e.f. 08.04.2014)

b) Associates

1 Nalwa Steel & Power Limited

2 Prodisyne (Pty) Limited

3 Thuthukani Coal (Pty) Limited

4 Everbest Steel and Mining Holdings Limited (formerly known as Everbest Infrastructure & Development) (ceased to exist as associate w.e.f 03.12.2015)

Note: Following entities ceased to exist in previous year Angul Sukinda Railway Limited (ceased to exist as associates w.e.f 31.03.2015)

Panacore Shipping Pte Limited, Singapore (ceased to exist as subsidiary w.e.f. 20.11.2014)

JB FabInfra Private Limited (became subsidiary w.e.f. 10.10.2014)

Koleko Resources (Pty) Limited (became subsidiary w.e.f. 12.10.2014)

c) Joint Ventures

1 Jindal Synfuels Limited

2 Shresht Mining and Metals Private Limited

3 Urtan North Mining Private Limited

d) Key Managerial person

1 Shri Naveen Jindal (Chairman)

2 Shri Ravi Uppal (MD & CEO)

3 Shri D.K. Saraogi (Wholetime director)

4 Shri Rajeev Bhadauria

e) Enterprises over which Key Management Personnel and their relatives excercise significant influence and with whom transactions have taken place during the year

1 Minerals Management Services (India) Private Limited

2 Jindal Stainless Ltd

3 Jindal Industries Limited

4 Bir Plantation Limited

5 India Flysafe Aviation Limited

6 Jindal Realty Private Limtied

7 Jindal Saw Limited

8 JSW Steel Limited

9 Rohit Tower Building Limited

10 JSW Energy Limited

11 JSW Coated Product Limited

12 JSW Projects Limited

2. During the current year, the Company has paid managerial remuneration of Rs.14.75 crore to the Chairman and Rs.7.30 crore to Managing Director and Group CEO of the Company. The Company had taken the shareholders'' approval by way of special resolution for payment of minimum managerial remuneration as per Schedule V to the Companies Act, 2013 subject to the approval of Central Government. The Company has filed necessary application(s) with the Central government for excess remuneration paid of Rs.8.01 crore and approval is awaited.

3. The Company has, as on 31st March 2016, outstanding loan in foreign currency of US$ 109.95 million (equivalent Rs.729.35 crore) in the name of an overseas subsidiary. The said loan, being long term was earlier treated as part of quasi equity and hence exchange difference arising on the translation of the said loan was accumulated in foreign currency translation reserve.As a consequence of the Company rescheduling the terms of re-payment, said loan is to be repaid by the overseas subsidiary by 31st March, 2017. Accordingly, accumulated balance appearing in the foreign currency translation reserve of Rs.70.89 crore as at close of the year, has been credited to the statement of profit and loss during the current year.

4. The Company has filed legal suits /notices or in the process of filing legal case /sending legal notices / making efforts for recovery of debit balances of Rs.498.64 crore plus interest wherever applicable,which are being carried as long term / short term advances, trade receivables and other recoverable. Pending outcome of legal proceedings/Company ''s efforts for recovery and based on legal advise in certain cases, the Company has considered aforesaid amounts as fully recoverable. Hence, no provision has been made in respect of these balances.

5. Subject to customary regulatory approvals and other conditions precedent(s), the Board of Directors at its meeting held on 3rd May,2016 has approved the agreement for divestment of 1,000 MW Power unit of Jindal Power Limited (a subsidiary of the Company (JPL)), located in Chhattisgarh into a separate purpose vehicle (SPV), for the purpose of transferring the same to JSW Energy Limited through sale of the entire share capital and other securities of the aforesaid entity in terms of the share purchase agreement for an enterprise value of Rs.6,500 crore plus the value of Net Current Assets as on the Closing Date. The valuation may vary based upon the achievement of PPA''s before the closing date 30th June, 2018 and as prescribed in the Agreement subject to minimum of Rs.4,000 crore plus the value of Net Current Assets as on the Closing Date.

In order to streamline cash flows of the group and create SPV amenable for, the Board of Directors of the Company and JPL have in principle approved the restructuring involving parent company and JPL and formed a committee of directors ("Restructuring Committee"), to explore and evaluate various restructuring options available including a scheme of arrangement. The restructuring will entail that 1,000 MW Power Plant owned by JPL is hived off into an separate purpose vehicle, being subsidiary of the parent company, creation of other SPV amenable for monetization by way of divestments as well as achieve better synergy across the parent company and its subsidiaries, and to ensure that the businesses of these entities are operated in the most efficient and cost effective manner, including by pooling of technical, distribution and marketing skills, creating optimal utilisation of resources, better administration and cost reduction. Upon completion of evaluation of the possible arrangement options, the Restructuring Committee is to submit its recommendations to the Board of Directors and to such other committee(s) of the Board, including the Audit Committee, shareholders as may be required by applicable laws.

6. During the current year, the Board of Directors of the Parent Company has approved the sale of certain captive power plants (CPP) to Jindal Power Limited (JPL) subsidiary company situated at Angul, Odisha (6 X 135 MW) and at Raigarh, Chhattigarh (2 X 55 MW) aggregating to 920 MW at a fair market value determined by independent valuer appointed by the Board of Directors amounting to Rs.5,275 crore; which is subject to necessary approvals to be arranged by the parent company. The parent company has received interest free advance against above of Rs.2,658 crore which is included under other current liabilities.

7. Previous year''s figures have been regrouped wherever necessary to conform with this year''s classification.

8. Amounts disclosed under abridged financial statements are same as that shown in the corresponding aggregated heads in the financial statement prepared in accordance with Schedule III to the Companies Act, 2013 or as near thereto as possible.

9. Complete balancesheet, statement of profit and loss, other statements and notes thereto prepared as per the requirements of schedule III to the Act are available at the Company''s website at link:http;//www.jindalsteelpower.com/ investors/annual-report.html.


Mar 31, 2015

1. OVERVIEW

Jindal Steel & Power Limited is one of the India''s leading steel producers with significant presence in sector like mining and power generation. It is listed on the National Stock Exchange of India and Bombay Stock Exchange in India. Its business is spread across India and overseas. The corporate office is situated in New Delhi and the manufacturing plants in India are in the states of Chhattisgarh, Odisha, Jharkhand etc. The Company has global presence mainly in Australia, Botswana, Cameroon, China, Dubai, Indonesia, Mauritius, Mozambique, Madagascar, Namibia, South Africa, Sultanate of Oman, Tanzania and Zambia. There are several business initiatives running simultaneously across continents.

2. SHARE CAPITAL

a) Terms/rights attached to equity shares

The Company has only one class of equity shares having par value of Rs.1 per share. Each holder of equity share is entitled to one vote per share. The Company declares dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the Shareholders in the ensuing Annual General Meeting.

during the year ended 31st March 2015, the amount of per share dividend proposed, subject to approval of shareholders in annual general meeting, for distribution to equity shareholders is Rs. NIL (Previous Year Rs. 1.50)

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company after payment of all liabilities. The distribution will be in proportion to the number of equity shares held by the shareholders.

b) Aggregate number of bonus shares issued, shares issued for consideration other than cash and shares bought back during the period of five years immediately preceding the reporting date:

c) Forfeited shares:

Pursuant to the resolution passed at the extra ordinary general meeting dated 4th September,2009, the Company reclassified the authorized share capital of the Company by cancellation of 10,000,000 Preference Shares of Rs. 100 each and simultaneous creation of 1,000,000,000 fresh Equity Shares of Rs. 1 each and increased the authorized share capital to Rs. 2,000,000,000.

"Consequently, the Company had cancelled 20,00,000 preference shares of Rs. 100 each ( Rs. 5 paid up) which were forefeited earlier. Upon cancellation of such shares, the amount of Rs. 10,000,000 was transferred to General Reserve.

d) Buy back of equity shares :

In accordance with Section 77 of the Companies Act,1956 and buy back regulations of SEBI, the Company during the financial year 2013-14 bought back and extinguished 19,959,584 number of equity shares of Rs. 1 each and created a Capital Redemption Reserve of Rs. 2.00 crores out of surplus in the Statement of Profit and Loss. The premium on buy back of Rs. 498.80 crores has been utilised from Securities Premium Account by Rs. 122.96 crores and out of surplus in Statement of Profit and Loss by Rs. 375.84 crores.

e) Employee stock purchase scheme :

a) In accordance with SEBI(Employee Stock Option Scheme and Employee Stock Purchase Scheme)Guidelines 1999 and pursuant to JSPL ESPS 2013 Scheme, the Compensation Committee of the Board vide its resolution dated 29.08.2013 offered 21,000 equity shares of Rs. 1/- each at a premium of Rs. 295.95 each to Mr Ravi Uppal, Managing Director & Group CEO. Out of the total offered equity shares the Company has during the year issued 17,816 equity shares of Rs. 1/- each.

b) As per resolution passed by the Compensation Committee held on 22.07.2013, during the previous year, 11750 Equity Shares of Rs. 1/- each at a premium of Rs. 201.55 were allotted to Mr Ravi Uppal, Managing Director & Group CEO, as per the provisions of Employee Stock Purchase Scheme 2013(hereinafter referred to as JSPL ESPS 2013 Scheme) duly approved through postal ballot as on 21.06.2013.

3. DEBENTURES

i) Debentures of Rs. 1,000 crore (March 31, 2014 Rs. 1,000 crore) placed initially with Life Insurance Corporation of India on private placement basis are redeemable at par in 2 equal annual instalments at the end of 9.5 and 10.5 years from the date of respective allotments i.e. Rs. 100 crore (12.10.2009), Rs. 150 crore (22.10.2009), Rs. 150 crore (24.11.2009), Rs. 150 crore (24.12.2009), Rs. 150 crore (25.01.2010), Rs. 150 crore (19.02.2010) and Rs. 150 crore (26.03.2010). The debentures are secured on pari-passu charge basis by way of mortgage of immovable properties and hypothecation of movable fixed assets created/to be created on the 6x135 MW Power Plant Project at Angul, Odisha in favour of the debenture Trustees.

ii) debentures of Rs. 62 crore (March 31, 2014 Rs. 62 crore) placed initially with SBI Life Insurance Company Limited on private placement basis are redeemable at par in 5 equal annual instalments commencing from the end of 8 years from the date of allotment i.e. 29.12.2009. The debentures are secured on pari passu basis by way of mortgage of immovable properties and hypothecation of movable assets created/to be created on the 6x135 MW Power Plant Project at Angul, Odisha in favour of the debenture Trustees.

iii) debentures Rs. NIL (March 31, 2014 Rs. 25 crore) placed initially with ICICI Lombard General Insurance Company Limited on private placement basis were redeemable at par at the end of 5 years from the date of allotment i.e. 03.12.2009. The debentures were secured on pari-passu charge basis by way of hypothecation of movable fixed assets of the Company (excluding assets charged on exclusive basis) in favour of the Debenture Trustees. In addition a first pari passu charge on a part of immovable property pertaining to unit located at Kharsia Road, Raigarh and a part of the immovable property pertaining to unit located at 13 KM Stone, G E Road, Mandir Hasaud, Raipur.

iv) debentures of Rs. NIL (March 31, 2014 Rs. 75 crore) placed initially with ICICI Prudential Life Insurance Company Limited on private placement basis were redeemable at par at the end of 5 years from the date of allotment i.e. 03.12.2009. The debentures were secured on pari-passu charge basis by way of hypothecation of movable fixed assets of the Company (excluding assets charged on exclusive basis) in favour of the debenture Trustees. In addition a first pari passu charge on a part of immovable property pertaining to unit located at Kharsia Road, Raigarh and a part of the immovable property pertaining to unit located at 13 KM Stone, G E Road, Mandir Hasaud, Raipur.

v) debentures of Rs. 500 crore (March 31, 2014 Rs. 500 crore) placed initially with Life Insurance Corporation of India on private placement basis are redeemable at par in 2 equal annual instalments at the end of 9.5 and 10.5 years from the date of respective allotments i.e. Rs. 100 crore (24.08.2009), Rs. 80 crore (08.09.2009), Rs. 80 crore (08.10.2009), Rs. 80 crore (09.11.2009), Rs. 80 crore (08.12.2009) and Rs. 80 crore (08.01.2010) . The debentures are secured on pari-passu charge basis by way of hypothecation of movable fixed assets of the Company (excluding assets charged on exclusive basis) in favour of the debenture Trustees. In addition a first pari passu charge on a part of immovable property of the pertaining to unit located at Kharsia Road, Raigarh and a part of the immovable property pertaining to unit located at 13 KM Stone, G E Road, Mandir Hasaud, Raipur.

TERM LOANS

Security

i) Loans of Rs. NIL (March 31, 2014 Rs. 30.13 crore) repayable in 28 quarterly instalments starting from September 30, 2007 were secured by first pari passu charge on all movable and immovable fixed assets, both present and future under Steel expansion project at Raigarh, Chhattisgarh.

ii) Loans of Rs. NIL (March 31, 2014 Rs. 17.14 crore) repayable in 28 quarterly instalments starting from October 1, 2007 were secured pari passu charge on all movable and immovable fixed assets, both present and future created under 3x25 MW Power Plant at Raigarh, Chhattisgarh.

iii) Loans of Rs. 11.20 crore (March 31, 2014 Rs. 57.62 crore) repayable in 28 quarterly instalments starting from September 2008 are secured by way of a first pari passu charge on all the present movable Fixed Assets of units located at Balkudra, Patratu, district Ramgarh, Jharkand; 13 KM Stone, G E Road, Mandir Hasaud, Raipur; 201 to 204, Industrial Park SSD, Punjipatra, Raigarh, Chhattisgarh; Bhikaji Cama Place, New delhi; village Pachwad district Satara, Maharashtra and all movable Fixed Assets (present as well as future) located at Kharsia Road, Raigarh, Chhattisgarh. In addition a first ranking mortgage and pari passu charge on immovable property pertaining to unit located at Kharsia Road, Raigarh.

iv) Loans of Rs. 3,080.44 crore (March 31, 2014 Rs. 3483.38 crore) repayable in 32 quarterly instalments starting from June, 2014 are secured by first pari passu charge on all movable plant & machinery, spare parts including all insurance policies, project contracts, movable contracts and immovable fixed assets, both present and future under the 1.8 MTPA DRI facility at Angul, Odisha.

v) Loans of Rs. 434.63 crore (March 31, 2014 Rs. 523.79 crore) repayable in 38 quarterly instalments starting from October, 2010 are secured by way of first pari passu charge on all movable and immovable fixed assets both present and future under 2X135 MW Power Plant (Phase- 1) at dongamauha, Raigarh, Chhattisgarh.

vi) Loans of Rs. 485.89 crore (March 31, 2014 Rs. 583.07 crore) repayable in 8 equal annual instalments starting from September 30, 2013 are secured by first pari passu charge on all movable plant & machinery, spares, vehicles etc. and immovable fixed assets, both present and future under 2X135 MW Power Plant (Phase- 2) at dongamauha, Raigarh, Chhattisgarh.

vii) Loans of Rs. 2,575.87 crore (March 31, 2014 Rs. 3,022.33 crore) repayable in 28 quarterly instalments starting from december 2013 are secured by first pari passu charge on all movable (including project contracts) and immovable fixed assets, both present and future under 1.5 MTPA Integrated Steel Plant and 1.2 MTPA Plate Mill project at Angul, Odisha.

viii) Loans of Rs. 1,268.74 crore (March 31, 2014 Rs. 1,480.49 crore) repayable in 33 quarterly instalments starting from March, 2013 are secured by first pari passu charge on all movable plant & machinery, spare parts, furniture & fixtures including all the project contracts (including insurance policies, rights and titles) and immovable fixed assets, both present and future under 6x135 MW Power Plant Project at Angul, Odisha.

ix) Loans of Rs. 109.12 crore (March 31, 2014 Rs. 171.63 crore) repayable in 16 quarterly instalments starting from March 2013 are secured by subservient charge on fixed assets of the Company.

x) Loans of Rs. 1,485 crore(March 31, 2014 Rs. 1,500 crore) initially taken from ICICI bank on bilateral basis are repayable by way of ballooning instalments in two tranches. An amount of Rs. 500 crore shall be repayable in a period of 5 (five)years in 16 (sixteen) quarterly instalment, as per repayment schedule whereas an amount of Rs. 1000 crore shall be repayable in a period of 10 (Ten) years in 36 (thirty six) quarterly instalment starting from January, 2015. Loans of Rs. 1,000 crore (March 31, 2014 Rs. 300 crore) initially taken from HDFC Bank on bilateral basis are repayable in a period of 8 (eight) years in 28 (twenty eight) quarterly installments starting from June, 2015. Loans of Rs. 1,500 crore (March 31, 2014 NIL) from State Bank of India are repayable in a period of 8 (eight) years in 32 (Thirty Two) quarterly instalments starting from June, 2016. Above loans are secured by way of a first pari passu charge on all the present movable Fixed Assets of units located at Balkudra, Patratu, district Ramgarh, Jharkand; 13 KM Stone, G E Road, Mandir Hasaud, Raipur; 201 to 204, Industrial Park SSD, Punjipatra, Raigarh, Chhattisgarh; Bhikaji Cama Place, New delhi; village Pachwad district Satara, Maharashtra and all movable Fixed Assets (present as well as future) located at Kharsia Road, Raigarh, Chhattisgarh. In addition a first ranking mortgage and pari passu charge on immovable property pertaining to unit located at Kharsia Road, Raigarh and a part of the immovable property pertaining to unit located at 13 KM Stone, G E Road, Mandir Hasaud, Raipur.

xi) Loans of Rs. 3,075 crore (March 31, 2014 NIL) repayable in a period of 8 (eight) years in 31 (Thirty One) quarterly installments, as per repayment schedule starting from June, 2017 are secured by way of a first pari passu charge on all the present movable and immovable Fixed Assets of 1.5 MTPA Integrated Steel Plant including 1.2 MTPA Plate Mill project , 1.8 MTPA dpi facility, 810 MW Captive Power Plant at Angul including movable plant & machinery, spares, tools and accessories, furniture, fixtures and the miscellaneous fixed assets of the units at Angul.

OTHER LOANS Security

i) Loans of Rs. 302.49 crore (March 31, 2014 Rs. 53.80 crore) are secured by hypothecation by way of first pari passu charge over all of the borrower''s current assets, including agreegate rupee value of the borrower''s cash and bank balances, investments (of which return of principal is guaranteed), advance paid, raw material, finished and semi finished goods, consumable stores, spares stock in progress, bills of lading, airways bills, railways receipt (RR) good receipt (GR) motor transport receipts (MTR) or such other receipts (issued by approved carrier carrying consignment of raw material/ consumable spares), irrevovcable letter of credit, receivables, book debts and consumable stores (including those stored at borrowers''s work at Raigarh and Raipur, Chhatisgarh) and include any money owing to it and payable on demand or within 1 (one) year from the date of computation, in whatsoever currency demoninated or as otherwise defined/classified by guidelines of the RBI from time to time in force or any other appliable law and shall exclude those categorised as non current assets as per applicable law both present and future ("the Hypothicated current asstes"); and second pari passu charge by way of hypothecation, inter alia, on all the movable fixed asstes (except current asstes) to the extent of value of Rs. 467.50 crore including but not limited to plant and machinery, machinery spares, tools and accessories of the borrower, wheresoever in the possession of the borrower, both present and future (''The hypothecation movables'').

The Company is constantly rolling over the buyer''s credit for capex as per guidelines of RBI. Futher, the Company has raised long term loans to provide liquidity for payment of current portion of buyer''s credit for capex. Average rate of interest is 0.84% p.a.

4. DEBENTURES

i) Debentures of Rs. 300 crore (March 31, 2014 Rs. 300 crore) placed initially with HDFC Bank Limited on private placement basis are redeemable at at par at the end of 3 years from the date of allotment i.e. 05.04.2013.

ii) debentures of Rs. 300 crore (March 31, 2014 NIL) placed initially with ICICI Bank Limited on private placement basis are redeemable at par at the end of 5 years from the date of allotment i.e. 11.08.2014.

iii) debentures of Rs. 1,000 crore (March 31, 2014 NIL) placed initially with Kotak Mahindra Bank Limited on private placement basis are redeemable at par in 3 instalments, Rs. 330 crore at the end of 3 years , Rs. 330 crore at the end of 4 years and Rs. 340 crore at the end of 5 years from the date of allotment i.e. 18th december, 2014.

iv) debentures of Rs. 750 crore (March 31, 2014 NIL) placed initially with HDFC Bank Limited on private placement basis are redeemable at par at the end of 6 years from the date of allotment i.e. 11.03.2015.

Other Loans & Advances

External Commercial Borrowings

i) ECA from Credit Agricole CIB of Rs. 7.37 crore (March 31, 2014 Rs. 12.63 crore) repayable in 14 half yearly instalments starting from October 21, 2010.

ii) ECA from Credit Agricole CIB of Rs. 68.09 crore (March 31, 2014 Rs. 11.05 crore) repayable in 16 half yearly instalments starting from May 25, 2010.

iii) ECA from Credit Agricole CIB of Rs. 93.20 crore (March 31, 2014 Rs. 134.73 crore) repayable in 20 half yearly instalments starting from March 9, 2011.

iv) ECA from Credit Agricole CIB of Rs. 6.78 crore (March 31, 2014 Rs. 12.43 crore) repayable in 14 half yearly instalments starting from June 21, 2010.

v) ECB from Mizuho Bank Limited of Rs. 156.48 crore (March 31, 2014 Rs. 150.25 crore) repayable on May 19, 2015.

vi) ECB from DBS Bank Limited of Rs. 312.95 crore (March 31, 2014 Rs. 300.50 crore) repayable on June 17, 2015.

vii) ECB from Mizuho Bank Limited of Rs. 156.48 crore (March 31, 2014 Rs. 150.25 crore) repayable on January 22, 2016.

viii) ECB from ICICI Bank Limited of Rs. 192.65 crore (March 31, 2014 Rs. 289.99 crore) repayable in 15 half yearly instalments starting from March 11, 2011.

The interest rate for the above External Commercial Borrowings varies from 0.43% to 2.37% p.a

Unsecured Term Loans from Banks

Other Loans

The Company is constantly rolling over the buyer''s credit for capex as per guidelines of RBI. Futher, the Company has raised long term loans to provide liquidity for paymnent of current portion of buyer''s credit for capex. Average rate of interest is 0.86% p.a.

5. a) Capital Work in Progress includes Rs. 232.25 crore (Previous year Rs. 692.98 crore) being Pre-operative expenditure and Rs. 344.00 crore ( Previous year Rs. 818.80 crore) being Capital stores.

b) Additions to Fixed Assets includes Rs. 14.22 crore ( Previous year Rs. 4.81 Crore) and addition to Capital work- in- progress includes Rs.10.22 Crore( Previous year Rs. 4.00 crore) being expenditure incurred on Research & Development Activities. The Capital Work in Progress accumulated balance as on 31st March,2015 is Rs. Nil crore (Previous year Rs. 4.00 crore). Additions to Fixed Assets includes Rs. 14.22 Crore ( Previous year Rs. 4.05 crore) being capitalized from Capital work in progress.

c) Additions /(adjustments) to plant and machinery/ capital work-in-progress includes addition of (Rs. 101.13 Crore) (Previous year Rs. (4.12) crore) on account of foreign exchange fluctuation and other adjustments of Rs. (2.64) crore (Previous Year Nil).

d) Borrowing cost incurred during the year and capitalized is Rs. 389.84 Crore ( Previous year Rs. 310.98 crore) . Borrowing cost incurred during the year and transferred to capital work-in-progress is Rs. 9.66 Crore (Previous year Rs. 428.54 crore)

e) Intangible assets under development include Rs. 0.24 crore depreciation during the year (Previous year Rs. Nil crore ).

(Rs. in Crore)

Year ended Year ended 31st March 31st March 2015 2014

6. CONTINGENT LIABILITIES AND COMMITMENTS

Contigent Liabilities and commitments as on 31st March, 2015

Description

Guarantees, Undertakings & Letter of Credit

a) Guarantees issued by the Company''s Bankers on behalf of the Company 794.08 822.90

b) Letter of credit opened by banks 963.64 474.13

c) Corporate guarantees/undertakings issued on behalf of third parties. 3,813.75 6,827.48

Statutory demands

d) Disputed Excise Duty and Other demands 1,515.63 1,432.00

e) Income Tax demands where the cases are pending at various stages of 904.74 555.84 appeal with the authorities

f) Bonds executed for machinery imports under EPCG Scheme 3,098.44 2,470.22

Others

g) Future liability on account of lease rent for unexpired period 3.46 10.05

h) Claims against the company,not acknowledge as debt 111.10 78.13

i) Uncalled liability towards partly paid up shares 10.20 60.15

j) The company has provided a shortfall undertaking to fund the debt service reserve account (DSRA) of a subsidiary. As the subsidiary continues to maintain succeeding 3 months interest and principle in DSRA, hence the company does not have any present liability to fund the said account

II Commitmments

Estimated amount of contracts remaining to be executed on capital account and 3,842.11 2,618.70 not provided for (net of advances)

7. The Company has till date recognized Rs. 795.01 crore (Previous year Rs. 130.01 crore) as Minimum Alternate Tax (MAT) credit entitlement which represents that portion the MAT Liability, the credit of which would be available based on the provision of Section 115JAA of the Income Tax Act, 1961. The management based on the future profitability projections is confident that there would be sufficient taxable profit in future which will enable the Company to utilize the above MAT credit entitlement.

8. ''Employee Benefits'', in accordance with Accounting Standard (AS-15):

A. The Company has a defined benefit gratuity plan. Every employee who has completed five years or more of service gets a gratuity on departure at 15 days'' salary (last drawn salary) for each completed year of service.

B. The Guidance on Implementing AS 15, Employee Benefits ( Revised 2005) issued by Accounting Standards Board (ASB) of the ICAI states that benefits involving employer established provident funds, which require interest shortfalls to be recompensed are to be considered as defined benefit plans. The Actuarial Society of India has issued the final guidance for measurement of provident fund liabilities. The actuary has accordingly provided a valuation and based on the below assumptions made a provision of Rs. 11.41 Crore as at 31st March, 2015 (Previous Year Rs. 10.93 Crore )

The Company contributed/ provided Rs. 20.58 Crore and Rs. 19.59 Crore towards provident fund during the year ended 31st March, 2015 & 31st March, 2014 respectively.

The following tables summarise the components of net benefit expense recognised in the Statement of Profit and Loss and the funded status and amounts recognised in the balance sheet for the respective plans.

9. Pursuant to the Judgment dated 25.08.2014 read with Order dated 24.09.2014 passed by the Hon''ble Supreme Court the allocation of the coal blocks, Gare Palma Iv/1 (operational); Utkal B-1, Amarkonda Murgadangal, Gare Palma Iv/6, Ramchandi, Urtan North and Jitpur (non-operational) to the Company/its joint ventures stand de-allocated.

Prior to the said de-allocation by the Hon''ble Supreme Court, the Government had invoked bank guarantees provided by the Company to the extent of Rs. 153.55 crore with respect to Ramchandi, Amarkonda Murhadangal and Jitpur Coal Blocks. These matters, besides the matters with respect to Urtan North and Gare Palma Iv/6 coal blocks, were contested by the Company at various levels and the invocation of the said bank guarantees had been stayed by the respective Hon''ble High Courts. Bank guarantees amounting to Rs. 267.00 crore have been provided by the Company for the above mentioned non- operational coal blocks.

Pursuant to the said de-allocation by the Hon''ble Supreme Court and pending the decision/s of the Ministry of Coal on the show cause notices issued by the Ministry of Coal calling upon the Company to show cause as to why the delay in the development of the non-operational coal blocks should not be held as violation of the terms and conditions of the allocation letters of the said coal blocks, the respective Hon''ble High Courts have required the Company to keep the said Bank Guarantees alive pending the decision of the Government (Ministry of Coal) in individual case. The High Courts have restrained the Ministry of Coal to act in furtherance of its subsequent decision/s, to invoke the bank guarantee/s, for a further period of two weeks'' time from the date of the communication of such decision/s in order to enable the Company to challenge such decision/s of the Ministry of Coal. In the meantime, the invocation of the bank guarantees has been stayed by the Hon''ble High Courts.

10. Disclosure as required by Accounting Standard (AS-17) '' Segment Reporting'':

The primary reportable segments are the business segments namely Iron & Steel and Power. The secondary reportable segments are geographical segments which are based on the sales to customers located in India and outside India. Segment accounting policies are in line with the accounting policies of the Company. In addition, the following specific accounting policies have been followed for segment reporting:

a) Segment revenue includes sales and other income directly identifiable with/allocable to the segment including inter- segment revenue.

b) Expenses that are directly identifiable with/allocable to segments are considered for determining the segment results.

c) Expenses/Incomes which relates to the Company as a whole and not allocable to segments are included under Other Un-allocable Expenditure (net of Un-allocable Income).

d) Segment assets and liabilities include those directly identifiable with respective segments. Un-allocable assets and liabilities represent the assets and liabilities that relate to Company as a whole and not allocable to any segment.

11. FINANCIAL AND DERIVATIVE INSTRUMENTS:

a) Derivatives contracts entered into by the Company and outstanding as on 31st March, 2015, for hedging currency and interest rate related risks:

b) The principal component of monetary foreign currency loans/debts and payable amounting to Rs. 2,272.66 crore (Previous year Rs. 4,094.42 crore) and receivable amounting to Rs. 90.77 crore (Previous year Rs. 241.32 crore) not hedged by derivative instruments

c) In accordance with the accounting policy on financial derivative instruments, during the year, the company has recognized mark to market losses of Rs. NIL (Previous year Rs. NIL).

12. In accordance with the Companies Act 2013, the Company has revised the useful life of their fixed assets to comply with the useful life as mentioned in Schedule II of the said Act. As per the transitional provisions the Company has adjusted Rs. 106.57 crore (net of tax of Rs. 56.40 crore) from the opening balance of retained earnings. Had the Company continue to follow earlier useful life the depreciation expense for the year would have been lower by Rs. 145 crore.

13. The Hon''ble Supreme Court of India by its Order dated 24 September 2014 has cancelled number of coal blocks allocated to the Company by Ministry of Coal, Government of India and directed to pay an additional levy of Rs. 295 per MT on gross coal extracted from the operational mines from 1993 to till date. The final hearing of the Hon''ble Supreme Court of India for review petition filed by the Company towards order relating to challenging cancellation of coal blocks is still pending.

i. The Company has paid under protest such levy on coal extracted during the period from 1993 to 24 September 2014 of Rs. 1,989.83 crore. The management based on legal opinion has accounted for Rs. 768.91 Crore computed on net extraction (run of mines less shale, rejects and ungraded middling) of coal by the Company. The said amount has been shown as exceptional item in the result and balance amount of Rs. 1,220.92 crore has been shown as recoverable from the Government Authority since the entire amount of additional levy has been paid under protest.

ii. Consequent to above, the Company has also provided Rs. 38.86 Crore as levy against coal extracted (run of mines less shale, rejects and ungraded middling) from 25 September 2014 till 31 March 2015. The said amount has also been shown as exceptional item.

iii. The Company has net book value of investment made in mining assets including land, infrastructure and clearance etc. of Rs. 419.72 crore. The difference, if any, between book value of investment and compensation to be determined, shall be accounted for when the final compensation is received pursuant to directive vide letter dated 26 December, 2014 given by the Ministry of Coal on such mines.

14. DISCLOSURES AS REQUIRED BY ACCOUNTING STANDARD (AS-18) RELATED PARTY DISCLOSURES

A List of Related Parties and Retainership

a) Subsidiaries, Step down Subsidiaries

I. Subsidiaries

1 Jindal Power Limited

2 Jindal Steel Bolivia SA

3 Jindal Steel & Power (Mauritius) Limited

4 Skyhigh Overseas Limited

5 Everbest Steel and Mining Holdings Limited (formerly known as Everbest Infrastructure & Development) (upto 05.02.2015)

6 Jindal Angul Power Limited (formerly known as JSPL Mining and Steel Limited)

7 JB FabInfra Private Limited (w.e.f 10.10.2014)

8 Trishakti Real Estate Infrastructure and developers Private Limited (w.e.f 29.04.2014)

II. Subsidiaries of Jindal Power Limited

1 Attunli Hydro Electric Power Company Limited

2 Etalin Hydro Electric Power Company Limited

3 Jindal Hydro Power Limited

4 Jindal Power distribution Limited

5 Ambitious Power Trading Company Limited

6 Jindal Power Transmission Limited

7 Jindal Power ventures (Mauritius) Limited

8 Kamala Hydro Electric Power Co. Limited

9 Kineta Power Limited (formerly known as Kineta Power Private Limited)

10 Uttam Infralogix Limited

III. Subsidiaries of Skyhigh Overseas Limited

1 Gas to Liquids International S.A

Iv. Subsidiaries of Jindal Power ventures (Mauritius) Limited

1 Jindal Power Senegal SAU

v. Subsidiaries of JB FabInfra Private Limited

1 JB Fab Green Horizon Infra Limited

vI. Subsidiaries of Jindal Steel & Power (Mauritius) Limited

1 Blue Castle ventures Limited

2 Brake Trading (Pty) Limited

3 Enduring Overseas Inc

4 Fire Flash Investments (Pty) Limited

5 Harmony Overseas Limited

6 Jin Africa Limited

7 Jindal (BvI) Limited

8 Jindal Africa Investments (Pty) Limited

9 Jindal Africa Liberia Limited

10 Jindal Africa SA

11 Jindal Botswana (Pty) Limited

12 JINDAL Brasil Mineragao S/A (ceased to exist as subsidiary w.e.f. 25.03.2015)

13 Jindal Investimentos LDA

14 Jindal Investment Holding Limited.

15 Jindal KZN Processing (Pty) Limited

16 Jindal Madagascar SARL

17 Jindal Mining & Exploration Limited

18 Jindal Mining Namibia (Pty) Limited

19 Jindal Steel & Minerals Zimbabwe Limited

20 Jindal Steel & Power (BC) Limited

21 Jindal Steel and Power(Australia) Pty Limited

22 Jindal Tanzania Limited

23 Jindal Zambia Limited

24 JSPL Mozambique Minerais LDA

25 Jublient Overseas Limited

26 Landmark Mineral Resources (Pty) Limited

27 Osho Madagascar SARL

28 Panacore Investment Limited, Mauritius (ceased to exist as subsidiary w.e.f 08.04.2014)

29 PT Jindal Overseas

30 Rolling Hills Resources LLC (under liquidation)

31 Shadeed Iron & Steel L.L.C

32 Sungu Sungu Pty Limited

33 Tablet Blue Trade and Invest (Pty) Limited

34 Trans Asia Mining Pte. Limited

35 Trans Atlantic Trading Limited (ceased to exist as subsidiary w.e.f. 07.04.2014)

36 vision Overseas Limited

37 Wollongong Coal Limited

38 Jindal Steel DMCC (w.e.f 25.08.2014)

39 Jindal Mauritania SARL

VII Others

1 Belde Empreendimentos Mineiros LDA, a subsidiary of JSPL Mozambique Minerais LDA

2 Eastern Solid Fuels (Pty) Limited, a subsidiary of Jindal Mining & Exploration Limited

3 Ericure (Pty) Limited, a subsidiary of Tablet blue Trade and Investment (Pty) Limited

4 PT BHI Mining Indonesia, a subsidiary of Jindal Investment Holding Limited

5 PT Sumber Surya Gemilang, a subsidiary of PT.BHI Mining Indonesia

6 PT Maruwai Bara Abadi, a subsidiary of PT.BHI Mining Indonesia

7 Jindal Mining SA (Pty) Limited, a subsidiary of Eastern Solid Fuels (Pty) Limited

8 Bon-Terra Mining (Pty) Limited,a subsidiary of Jindal (BVI) Limited

9 CIC (Barbados) Holding Corp,a subsidiary of Jindal (BVI) Limited

10 CIC Energy (Bahamas) Limited,a subsidiary of Jindal (BVI) Limited

11 Jindal Energy (Botswana) Pty Limited,a subsidiary of Jindal (BVI) Limited

12 Jindal Energy (SA) Pty Limited, a subsidiary of Jindal (BVI) Limited

13 CIC Transafrica (Barbados) Corp,a subsidiary of Jindal (BVI) Limited

14 Jindal Resources (Botswana) Pty Limited,a subsidiary of CIC Transafrica (Barbados) Corp

15 Trans Africa Rail (Pty) Limited, a subsidiary of CIC Transafrica (Barbados) Corp

16 Sad-Elec (Pty) Limited, a subsidiary of Jindal Energy (SA) Pty Limited

17 CIC (Barbados) Mining Corp, a subsidiary of CIC (Barbados) Holding Corp

18 CIC (Barbados) Energy Corp,a subsidiary of CIC (Barbados) Holding Corp

19 Meepong Resources (Mauritius) (Pty) Limited, a subsidiary of CIC (Barbados) Mining Corp

20 Meepong Resources (Pty) Limited, a subsidiary of Meepong Resources (Mauritius) (Pty) Limited

21 Meepong Energy (Mauritius) (Pty) Limited, a subsidiary of CIC (Barbados) Energy Corp

22 Meepong Energy (Pty) Limited, a subsidiary of Meepong Energy (Mauritius) (Pty) Limited

23 Meepong Service (Pty) Limited, a subsidiary of Meepong Energy (Pty) Limited

24 Meepong Water (Pty) Limited, a subsidiary of Meepong Energy (Pty) Limited

25 Core Ambition Limited, a subsidiary of Panacore Investment Limited (ceased to exist as subsidiary w.e.f 08.04.2014)

26 Core Forte Limited, a subsidiary of Panacore Investment Limited (ceased to exist as subsidiary w.e.f. 08.04.2014)

27 Core Integrity Limited, a subsidiary of Panacore Investment Limited (ceased to exist as subsidiary w.e.f. 08.04.2014)

28 Core vision Limited, a subsidiary of Panacore Investment Limited (ceased to exist as subsidiary w.e.f. 08.04.2014)

29 Peerboom Coal (Pty) Limited ,a subsidiary of Jindal Africa Investment (Pty) Limited

30 Shadeed Iron & Steel Company Limited, a subsidiary of Shadeed Iron & Steel LLC

31 Southbulli Holding Pty Limited, a subsidiary of Wollongong Coal Limited

32 Oceanic Coal Resources NL, a subsidiary of Wollongong Coal Limited

33 Wongawilli Coal Pty Limited, a subsidiary of Oceanic Coal Resources NL

34 Koleko Resources (Pty) Limited, a subsidiary of Jindal Africa Investment (Pty) Limited (ceased to exist as associates w.e.f.

11.10.2014)

35 Legend Iron Limited, a subsidiary of Jindal Mining & Exploration Limited ( became subsidiary w.e.f 05.08.2014)

36 Cameroon Mining Action (CAMINA) SA, a subsidiary of Legend Iron Limited ( became subsidiary w.e.f 05.08.2014)

b) Associates

1 Angul Sukinda Railway Limited (ceased to exist as associates w.e.f 31.03.2015)

2 JB FabInfra Private Limited (became subsidiary w.e.f.

10.10.2014)

3 Koleko Resources (Pty) Limited (became subsidiary w.e.f.

12.10.2014)

4 Nalwa Steel & Power Limited

5 Panacore Shipping Pte Limited , Singapore (ceased to exist as subsidiary w.e.f. 20.11.2014)

6 Prodisyne (Pty) Limited

7 Thuthukani Coal (Pty) Limited

8 Everbest Steel and Mining Holdings Limited (formerly known as Everbest Infrastructure & Development) (w.e.f 06.02.2015)

c) Joint Ventures

1 Jindal Synfuels Limited

2 Shresht Mining and Metals Private Limited

3 Urtan North Mining Company Limited

d) Key Management Personnel

1 Shri Naveen Jindal (Chairman )

2 Shri Ravi Uppal (MD & CEO)

3 Shri K.Rajagopal (Group CFO & director)

4 Shri D.K. Saraogi (wholetime director)

(e) Enterprises over which Key Management Personnel and their relatives excercise significant influence and with whom transactions have taken place during the year

1 Opelina Finance and Investment Limited

2 Gagan Infraenergy Limited

3 Jindal Systems Private Limited

4 Minerals Management Services (India) Private Limited

5 YNO finvest Private Limited

6 Jindal Rex Exploration Private Limited

7 OPJ Trading Private Limited

8 Templar Investments Limited

9 Dantra Enterprises Private Limited

10 Glebe Trading Private Limtied

11 Groovy Trading Private Limited

12 Sahyog Tradcorp Private Limited

13 virtuous Tradcorp Private Limited

14 Sonabheel Tea Ltd

15 Jindal Stainless Ltd

16 Jindal Industries Limited

17 Worldone Trading Private Limited formerly (Jindal Coal pvt Ltd)

18 Abhinandan Investment Limited

19 Bir Platation Limited

20 Bonanaza Trading Company P Limited

21 Colorado Trading Co Limited

22 India Flysafe Aviation Limited

23 India venture Advisors Private Limited

24 Jindal Realty Private Limtied

25 Jindal Saw Limited

27 JSW Steel Limited

28 Nalwa Engineering Company Limited

29 Nalwa Investment Limited

30 Rohit Tower Building Limited

15. During the current year, the Company has paid excess managerial remuneration of Rs. 7.01 crore to the Chairman and Rs. 0.62 crore to Managing director and CEO of the Company. The Company had taken the shareholders'' approval by way of special resolution for payment of minimum managerial remuneration as per Schedule v to the Companies Act, 2013 subject to the approval of Central Government. The Company has filed/in the process of filing of necessary application(s) for payment / ratify and confirm the waiver of recovery of excess managerial remuneration paid to them, with the Central Government, the approval of the Central Government is pending, wherever application is filed.

16. Investments Mode

There are no investments by the company other than thoes stated under Note no. 13 (i) &(ii) in the financial Statements

Securities given

There are no securities given during the year.

17. Previous year''s figures have been regrouped whenever necessary to conform with this year''s classification.


Mar 31, 2014

1. OVERVIEW

Jindal Steel & Power Limited is one of the India''s leading steel producers with significant presence in sector like mining and power generation.. It is listed on the National Stock Exchange of India and Bombay Stock Exchange in India. Its business is spread across India and overseas. The corporate office is situated in New Delhi and the manufacturing plants in India are in the states of Chhattisgarh, Odisha, Jharkhand etc. The Company has global presence in Australia, Botswana, China, Dubai, Indonesia, Liberia, Mauritania, Mauritius, Mozambique, Madagascar, Namibia, South Africa, Sultanate of Oman, Tanzania and Zambia. There are several business initiatives running simultaneously across continents.

OTHER LOANS

Security

i) Loans of Rs. 53.80 crore (Previous year Rs. 95.75 crore) are Secured by hypothecation by way of First Pari passu Charge over all current assets namely stock of raw materials, semi finished and finished goods, stores and spares not related to plant and machinery, all export benefits, bills receivables and book debts and second pari passu charge over all other movable fixed asstes of the company (both present and future, including plant machinery) to the extent of value of Rs. 467.50 crore.

ii) Loans of NIL (Previous year Rs. 54.17 crore) are secured by hypothecation of book debts and stocks.

(Rs.in Crore) Year ended 31st March, Year ended 2014 31st March, 2013

2. CONTINGENT LIABILITIES AND COMMITMENTS

I. Contigent Liabilities not provided for in respect of:

Description

Guarantees, Undertakings & Letter of Credit

a) Guarantees issued by the Company''s Bankers on behalf of the Company 822.90 430.05

b) Letter of credit opened by banks 474.13 786.72

c) Corporate guarantees/undertakings issued on behalf of third parties. 6827.48 5044.15 Statutory Demands

d) Disputed Excise Duty and Other demands 1432.00 937.17

e) Income Tax demands where the cases are pending at various stages of 555.84 191.94 appeal with the authorities

f) Bonds executed for machinery imports under EPCG Scheme 2470.22 3081.41 Others

g) Future liability on account of lease rent for unexpired period 10.05 10.05

h) Claims against the company, not acknowledge as debt 78.13 36.16

i) Uncalled liability towards partly paid up shares 60.15 73.27

j) The company has provided a shortfall undertaking to fund the debt service reserve account (DSRA) of a subsidiary. As the subsidiary continues to maintain succeeding 3 months interest and principle in DSRA, hence the company does not have any present liability to fund the said account

II Commitmments

Estimated amount of contracts remaining to be executed on capital 2,618.70 2765.83 account and not provided for (net of advances)

* The Company has paid lease rentals of Rs. 9.17 crore (previous year Rs. 8.34 crore) under cancellable operating leases. There are no non-cancellable operating leases

** Exceptional item (refer note no.34 to financial statements)

*** Expenditure on research & development activities, incurred during the year, is Rs. 14.23 crore (including capital expenditure of Rs. 4.76 crore) (previous year Rs.28.57 crore, including capital expenditure of Rs. 14.32 crore)

3. In the opinion of the Board, Current Assets, Loans and Advances have a value on realisation in the ordinary course of business at least equal to the amount at which they are stated and provision for all known liabilities has been made and considered adequate..

4. a) Provision for current income tax has been made considering various benefits and allowances available to the Company under the provisions of the Income Tax Act, 1961..

B. PROVIDENT FUND

The Company contributed/ provided Rs. 19.59 crore and Rs. 13.94 crore towards provident fund during the year ended 31st March, 2014 & 31st March, 2013 respectively.

The Guidance on Implementing AS 15, Employee Benefits (Revised 2005) issued by Accounting Standards Board (ASB) of the ICAI states that benefits involving employer established provident funds, which require interest shortfalls to be recompensed are to be considered as defined benefit plans. The Actuarial Society of India has issued the final guidance for measurement of provident fund liabilities. The actuary has accordingly provided a valuation and based on the below assumptions made a provision ofRs. 10.93 crore as at 31st March, 2014 (Previous Year Rs. 9.36 crore)

5. The Company has over the years, expanded and invested in its steel, power & mining businesses, both in India and internationally. In note 28 "Other expenses" in the Statement of Profit and Loss, Rs. Nil (previous year - Rs. 233.03 crore) represents "Loss arising from business investment" andRs. Nil (previous year- Rs. 341.09 crore) represents, as a matter of prudence, "Provision for diminution in the value of business investments"; of aforesaid business investments.

6. DISCLOSURES AS REQUIRED BY ACCOUNTING STANDARD (AS-18) ''RELATED PARTY DISCLOSURES''

The names of related parties where control exist and/or with whom transactions have taken place during the year and description of relationship as identified and certified by the management are:

A. List of Related Parties and Relationships a) Subsidiaries, Step down Subsidiaries

I. Subsidiaries

1. Jindal Power Limited

2. Jindal Steel Bolivia SA

3. Jindal Steel & Power (Mauritius) Limited

4. Skyhigh Overseas Limited

5. Everbest Infrastructure & Development (w.e.f 01.03.2014)

6. JSPL Mining and Steel Limited (w.e.f 31.12.2013)

II. Subsidiaries of Jindal Power Limited

1. Attunli Hydro Electric Power Company Limited

2. Etalin Hydro Electric Power Company Limited

3. Jindal Hydro Power Limited

4. Jindal Power Distribution Limited

5. Ambitious Power Trading Company Limited

6. Jindal Power Transmission Limited

7. Jindal Power Ventures (Mauritius) Limited (w.e.f 18.02.2014)

8. Kamala Hydro Electric Power Co. Limited

9. Kineta Power Private Limited (w.e.f 06.09.2013)

10. Uttam Infralogix Limited (w.e.f 07.10.2013)

III. Subsidiaries of Skyhigh Overseas Limited 1. Gas to Liquids International S.A

IV. Subsidiaries of Jindal Steel & Power (Mauritius) Limited

1. Blue Castle Ventures Limited (with effect from 17.02.2014)

2. Brake Trading (Pty) Limited (with effect from 29.07.2013)

3. Enduring Overseas Inc

4. Fire Flash Investments (Pty) Limited (with effect from 20.06.2013)

5. Harmony Overseas Limited

6. Jin Africa Limited

7. Jindal (BVI) Limited

8. Jindal Africa Investments (Pty) Limited 9 Jindal Africa Liberia Limited

10. Jindal Africa SA

11. Jindal Botswana (Pty) Limited

12. JINDAL Brasil MineracaoS/A

13. Jindal Investimentos LDA

14. Jindal Investment Holding Limited.

15. Jindal KZN Processing (Pty) Limited ( with effect from 01.04.2013)

16. Jindal Madagascar SARL

17. Jindal Mining & Exploration Limited

18. Jindal Mining Namibia (Pty) Limited

19. Jindal Steel & Minerals Zimbabwe Limited

20. Jindal Steel & Power (BC) Limited

21. Jindal Steel and Power(Australia) Pty Limited

22. Jindal Tanzania Limited

23. Jindal Zambia Limited

24. JSPL Mozambique Minerals LDA

25. Jublient Overseas Limited

26. Landmark Mineral Resources (Pty) Limited (with effect from 01.04.2013)

27. Osho Madagascar SARL

28. Panacore Investment Limited, Mauritius

29. PTJindal Overseas

30. Rolling Hills Resources LLC (under liquidation)

31. Shadeed Iron & Steel LLC

32. Sungu Sungu Pty Limited (with effect from 14.05.2013)

33. Tablet Blue Trade and Invest (Pty) Limited

34. Trans Asia Mining Pte. Limited

35. Trans Atlantic Trading Limited

36. Vision Overseas Limited

37. Wollongong Coal Limited (with effect from 15.11. 2013)

V. Others

1. Belde Empreendimentos Mineiros Limited, a subsidiary of JSPL Mozambique Minerals LDA

2. Eastern Solid Fuels (Pty) Limited, a subsidiary of Jindal Mining & Exploration Limited

3. Ericure (Pty) Limited, a subsidiary of Tablet blue Trade and Investment (Pty) Limited

4. PT BHI Mining Indonesia, a subsidiary of Jindal Investment Holding Limited

5. PTSumber Surya Gemilang, a subsidiary of PT.BHI Mining Indonesia

6. PT Maruwai Bara Abadi, a subsidiary of PT.BHI Mining Indonesia

7. Jindal Mining SA (Pty) Limited, a subsidiary of Eastern Solid Fuels (Pty) Limited

8. Bon-Terra Mining (Pty) Limited,a subsidiary of Jindal (BVI) Limited

8. CIC (Barbados) Holding Corp,a subsidiary of Jindal (BVI) Limited

9. CIC Energy (Bahamas) Limited,a subsidiary of Jindal (BVI) Limited

10. Jindal Energy (Botswana) Pty Limited,a subsidiary of Jindal (BVI) Limited

11. Jindal Energy (SA) Pty Limited, a subsidiary of Jindal (BVI) Limited

12. CIC Transafrica (Barbados) Corp,a subsidiary of Jindal (BVI) Limited

13. Jindal Resources (Botswana) Pty Limited,a subsidiary of CIC Transafrica (Barbados) Corp

14. Trans Africa Rail (Pty) Limited, a subsidiary of CIC Transafrica (Barbados) Corp

15. Sad-Elec (Pty) Limited, a subsidiary of Jindal Energy (SA) Pty Limited

16. CIC (Barbados) Mining Corp, a subsidiary of CIC (Barbados) Holding Corp

17. CIC (Barbados) Energy Corp,a subsidiary of CIC (Barbados) Holding Corp

17. Meepong Resources (Mauritius) (Pty) Limited, a subsidiary of CIC (Barbados) Mining Corp

18. Meepong Resources (Pty) Limited, a subsidiary of Meepong Resources (Mauritius) (Pty) Limited

19. Meepong Energy (Mauritius) (Pty) Limited, a subsidiary of CIC (Barbados) Energy Corp

20. Meepong Energy (Pty) Limited, a subsidiary of Meepong Energy (Mauritius) (Pty) Limited

21. Meepong Service (Pty) Limited, a subsidiary of Meepong Energy (Pty) Limited

22. Meepong Water (Pty) Limited, a subsidiary of Meepong Energy (Pty) Limited

23. Core Ambition Limited, a subsidiary of Panacore Investment Limited

24. Core Forte Limited, a subsidiary of Panacore Investment Limited

25. Core Integrity Limited, a subsidiary of Panacore Investment Limited

26. Core Vision Limited, a subsidiary of Panacore Investment Limited

27. Peerboom Coal (Pty) Limited ,a subsidiary of Jindal Africa Investment (Pty) Limited

28. Shadeed Iron & Steel Company Limited, a subsidiary of Shadeed Iron & Steel LLC

29. Southbulli Holding Pty Limited, a subsidiary of Wollongong Coal Limited

30. Oceanic Coal Resources NL, a subsidiary of Wollongong Coal Limited

31. Wongawilli Coal Pty Limited, a subsidiary of Oceanic Coal Resources NL

b) Associates

1. Angul Sukinda Railway Limited

2. JB Fablnfra Private Limited

3. Koleko Resources (Pty) Limited

4. Nalwa Steel & Power Limited

5. Panacore Shipping Pte Limited , Singapore

6. Prodisyne (Pty) Limited

7. Thuthukani Coal (Pty) Limited

c) Joint Ventures

1. Jindal Synfuels Limited

2. Shresht Mining and Metals Private Limited

3. Urtan North Mining Private Limited

d) Key Management Personnel

1. Shri Naveen Jindal

2. Shri Ravi Uppal

3. Shri AnandGoel (Up to 31.05.2013)

4. Shri Sushil Maroo ( Up to 31.08.2013)

5. Shri K. Rajagopal (with effect from 30.08.2013)

6. Shri D KSaraogi

e) Enterprises over which Key Management Personnel and their relatives exercise significant influence and with whom transactions have taken place during the year

1. Abhinandan Investments Limited.

2. Bir Plantations Private Limited

3. Bonanaza Trading Company Private Limited

4. Colorado Trading Co. Limited.

5. Gagan Infraenergy Limited.

6. India Flysafe Aviation Limited

7. IndiaVenture Advisors Private Limited.

8. Jindal Coal Private Limited

9. Minerals Management Services (India) Private Limited.

10. Jindal Industries Limited

11. Jindal Reality Private Limited.

12. Jindal Rex Exploration Private Limited.

13. Jindal Saw Limited.

14. Jindal Stainless Limited.

15. Jindal System Private Limited.

16. JSW Energy Limited

17. JSW Steel Limited

18. Nalwa Engineering Co. Limited.

19. Nalwa Investment Limited.

20. Opelina Finance and Investment Limited

21. Rohit Towers Buildings Limited

22. Trishakti Real Estate Private Limited

23. Uttam Vidyut Transmission Private Limited

24. YNO Finvest Private Limited.

7. Coal Blocks allocated by the Government of India to the Company or its subsidiaries or joint ventures or associates are being reviewed by the regulatory agencies and the Government, amongst the coal blocks allocated to various other companies in India. Pursuant to the same, the Government has since de-allocated Company''s coal blocks at Amarkonda Murgadangal, Gare IV/6, Ramchandi, Urtan North and Jitpur and has also invoked bank guarantees provided by the Company in this behalf to the extent of Rs. 153.55 crore. These matters are being contested by the Company at various levels, including the appropriate Hon''ble Courts of Judicature. The invocation of bank guarantees has been stayed by the appropriate Hon''ble High Courts. Bank guarantees amounting to Rs. 390.40 crore were provided by the Company for the above mentioned coal blocks.

8. DISCLOSURE AS REQUIRED BY ACCOUNTING STANDARD (AS-17)'' SEGMENT REPORTING'':

The primary reportable segments are the business segments namely Iron & Steel and Power. The secondary reportable segments are geographical segments which are based on the sales to customers located in India and outside India.

Segment accounting policies are in line with the accounting policies of the Company. In addition, the following specific accounting policies have been followed for segment reporting:

a) Segment revenue includes sales and other income directly identifiable with/allocable to the segment including inter-segment revenue.

b) Expenses that are directly identifiable with/allocable to segments are considered for determining the segment results.

c) Expenses/Incomes which relates to the Company as a whole and not allocable to segments are included under Other Un-allocable Expenditure (net of Un- allocable Income).

d) Segment assets and liabilities include those directly identifiable with respective segments. Un-allocable assets and liabilities represent the assets and liabilities that relate to Company as a whole and not allocable to any segment.

9. Previous year figures have been regrouped /recast wherever considered necessary to facilitate comparison.


Mar 31, 2013

1. OVERVIEW

Jindal Steel & Power Limited which commenced operations in the year 1991 is one of the India''s leading steel producers with significant presence in sector like mining, powergeneration and infrastructure. It is listed on the National Stock Exchange of India and Bombay Stock Exchange in India. Its business is spread across India and overseas. The corporate office is situated in New Delhi and the manufacturing plants in India are in the states of Chhattsgarh, Odisha, Jharkhand etc. The Company has global presence in Australia, Botswana, China, Liberia, Mauritania, Mozambique, Madagascar, Indonesia, South Africa, Sultanate of Oman, Tanzania and Zambia. There are several business initiatives running simultaneously across continents.

2. In the opinion ofthe Board, Current Assets, Loans and Advances have a value on realisation in the ordinary course of business at least equal to the amount at which they are stated and provision for all known liabilities has been made and considered adequate.

3. a) Provision for current income tax has been made considering various benefits and allowances available to the Company underthe provisionsofthe IncomeTax Act, 1961.

b) Movement of deferred tax provision/adjustment in accordance with Accounting Standard (AS-22) ''Accounting for Taxes on Income'' is as under:

4. The Company has over the years, expanded its steel, power & mining businesses, both in India and internationally. The Company, as part of global expansion of its core steel and mining business and on being awarded the El Mutun Iron Ore contract ("Contract") by the Government of Bolivia, made strategic business investment in Bolivia, through its subsidiaries in Bolivia. In view of various recent developments, including termination of the aforesaid Contract with the Bolivian Government, the entire business investment made by the Company in Bolivia had impaired. Considering the same, it was decided to dispose off 49% of such investment in accordance with the terms of the said Contract in order to prevent any further business loss. Accordingly, in note 28 "Other expenses" in the Statement of Profit and Loss, "Loss arising from business investment" ofRs. 233.03 crore represents loss on disposal; and Rs. 341.09 crore, as a matter of prudence, represents "Provision for diminution in the value of business investments"; of aforesaid business investments. The previous year figure represents loss on certain other investment.

5. Disclosure as Required by Accounting Standard (AS-17) ''Segment Reporting''

The primary reportable segments are the business segments namely Iron & Steel and Power. The secondary reportable segments are geographical segments which are based on the sales to customers located in India and outside India.

Segment accounting policies are in line with the accounting policies ofthe Company. In addition, the following specific accounting policies have been followed for segment reporting:

a) Segment revenue includes sales and other income directly identifiable with/allocable to the segment including inter-segment revenue.

b) Expenses that are directly identifiable with/allocable to segments are considered for determining the segment results.

c) Expenses/Incomes which relates to the Company as a whole and not allocable to segments are included under Other Un-allocable Expenditure (net of Un-allocable Income).

d) Segment assets and liabilities include those directly identifiable with respective segments. Un-allocable assets and liabilities represent the assets and liabilities that relate to Company as a whole and not allocable to any segment.

6. DISCLOSURES AS REQUIRED BY ACCOUNTING STANDARD (AS-18) ''RELATED PARTY DISCLOSURES''

A. List of Related Parties and Relationships

a) Subsidiaries, Step down Subsidiaries

I. Subsidiaries

1. JindalPowerLimited

2. Jindal Steel Bolivia SA

3. JindalSteel&Power(Mauritius) Limited

4. Skyhigh Overseas Limited (Demerged from JSPML)

II. Subsidiaries of Jindal Power Limited

1. Attunli Hydro Electric Power Company Limited

2. Etalin Hydro Electric Power Company Limited

3. JindalHydroPowerLimited

4. Jindal Power Distribution Limited

5. AmbitiousPowerTradingCompany Limited (Formerly Jindal Power Trading Company Limited)

6. Jindal PowerTransmission Limited

7. Kamala Hydro Electric Power Co. Ltd (FormerlySubansiri Hydro Electric Power Company Limited)

III. Subsidiaries of Skyhigh Overseas Limited

1. GastoLiquidslnternationalS.A

IV. Subsidiaries of Jindal Steel & Power (Mauritius) Limited

1. EnduringOverseasInc

2. HarmonyOverseasLimited

3. Jin Africa Limited

4. Jindal Africa Investments (Pty) Limited

5. Jindal Africa Liberia Limited

6. Jindal Africa SA

7. Jindal Botswana (Pty) Limited

8. JindalBrasilMineragaoS/A

9. Jindal (BVI) Ltd

10. Jindal Investimentos LDA

11. Jindal Investment Holding Limited

12. JindalMadagascarSARL

13. Jindal Mining & Exploration Limited

14. Jindal Mining Namibia (Pty) Limited

15. Jindal Power LLC (ceased to exist as subsidiaryw.e.f6th December, 2012)

16. JindalSteel&MineralsZimbabwe Limited

17. JindalSteel&Power(BC)Limited

18. Jindal Steel and Power(Australia) Pty Limited

19. JindalTanzaniaLimited

20. JindalZambiaLimited

21. Jindal Mining Industry LLC (ceased to exist as subsidiary w.e.f 6th December, 2012)

22. JSPLMozambique MineraisLDA

23. JublientOverseasLimited

24. OshoMadagascarSARL

25. PTJindalOverseas

26. Rolling Hills Resources LLC (Under liquidation)

27. Shadeed Iron & Steel LLC

28. Tablet Blue Trade and Invest (Pty) Limited

29. TransAsiaMiningPte.Limited

30. TransAtlanticTradingLimited

31. Vision Overseas Limited

32. WorthOverseasLimited (Merged with JSPML)

33. Panacore Investment Limited

V. Others

1. BeldeEmpreendimentosMineiros Limited, a subsidiary ofJSPL MozambiqueMinerais LDA

2. Eastern Solid Fuels (Pty) Limited, a subsidiary ofJindal Mining & Exploration Limited

3. PTBHIMining lndonesia,asubsidiary ofJindal Investment Holding Ltd

4. PTSumberSuryaGemilang,a subsidiary of PT.BHI Mining Indonesia

5. PT Maruwai Bara Abadi, a subsidiary of PT.BHI Mining Indonesia

6. Jindal Mining (Pty) Limited, a subsidiary ofEastern Solid Fuels (Pty) Limited

7. Bon-TerraMining(Pty)Limited,a subsidiary ofJindal (BVI) Ltd

8. CIC(Barbados)HoldingCorp,a subsidiary ofJindal (BVI) Ltd

9. CICEnergy(Bahamas)Limited,a subsidiary ofJindal (BVI) Ltd

10. Jindal Energy (Botswana) Pty Limited,a subsidiary ofJindal (BVI) Ltd

11. Jindal Energy (SA) Pty Limited,a subsidiary ofJindal (BVI) Ltd

12. CICTransafrica (Barbados) Corp,a subsidiary ofJindal (BVI) Ltd

13. Jindal Resources (Botswana) Pty Limited,a subsidiary ofCICTransafrica (Barbados) Corp

14. Trans Africa Rail (Pty) Limited, a subsidiary of CIC Transafrica (Barbados) Corp

15. Sad-Elec (Pty) Limited, a subsidiary of Jindal energy (SA) pty Ltd

16. CIC (Barbados) Mining Corp, a subsidiary ofCIC (Barados) Holding Corp

17. CIC (Barbados) Energy Corp,a subsidiary ofCIC (Barados) Holding Corp

18. Meepong Resources (Mauritus) (Pty) Limited, a subsidiary ofCIC (Barbados) Mining Corp

19. Meepong Resources (Pty) Limited, a subsidiary of Meepong Resources (Mauritus) (Pty) Limited

20. Meepong Energy (Mauritus) (Pty) Limited, a subsidiary ofCIC (Barbados) Energy Corp

21. Meepong Energy (Pty) Limited, a subsidiary of Meepong Energy (Mauritus) (Pty) Limited

22. MeepongService(Pty)Limited,a subsidiary of Meepong Energy (Pty) Limited

23. MeepongWater(Pty)Limited,a subsidiary of Meepong Energy (Pty) Limited

24. Core Ambition Ltd, a subsidiary of Panacore Investment Ltd

25. Core Forte Ltd, a subsidiary of Panacore Investment Ltd

26. Core Integrity Ltd, a subsidiary of Panacore Investment Ltd

27. CoreVisionLtd,asubsidiaryof Panacore Investment Ltd

b) Associates

1. AngulSukindaRailwayLimited

2. GujaratNRECokingCoalLimited

3. JB Fablnfra Private Limited

4. Jindal Infosolutions Limited (ceased to exist as subsidiaryw.e.f24th September, 2012)

5. KolekoResources

6. NalwaSteel&PowerLimited

7. Panacore Shipping Pte Ltd , Singapore

8. Prodisyne (Pty) Ltd

9. SunguSunguPtyLimited

c) Joint Ventures

1. Jindal Synfuels Limited

2. Shresht Mining and Metals Private Limited

3. Urtan North Mining Private Limited

d) Key Management Personnel

1. ShriNaveenJindal

2. Shri Ravi Uppal (w.e.f. 1st October, 2012)

3. ShriAnandGoel

4. Shri Vikrant Gujral (upto 9th November, 2012)

5. Shri DKSaraogi (w.e.f. 9th November, 2012)

6. Shri Naushad Akhtar Ansari (upto 30th April, 2012)

7. Shri M.L. Gupta (w.e.f. 27th April, 2012 upto 9th November, 2012)

e) Enterprises over which Key Management Personnel and their relatives exercise significant influence and with whom transactions have taken place during the year

1. JSWSteelLimited

2. JSWEnergyLimited

3. JindalSawLtd.

4. Jindal Stainless Ltd.

5. IndiaFlysafeAviationLimited

6. Jindal Reality Pvt. Ltd.

7. TriShakti Real Estate Pvt.Limited

8. Abhinandan Investments Ltd.

9. JindalSystemPvt.Ltd.

10. GaganlnfraenergyLtd.

11. ColoradoTradingCo.Ltd.

12. NalwaEngineeringCo.Ltd.

13. Opelina Finance and Investment Limited

14. Jindal Industries Limited

15. Jindal Coal Pvt. Limited

16. Minerals ManagementServices (India) Pvt. Ltd.

17. YNO Finvest Pvt. Ltd.

18. Jindal Rex Exploration Pvt. Ltd.

19. Bir Plantations Pvt Ltd

20. Nalwa Investment Ltd.

21. RohitTowersBuildingsLtd

22. Uttam Vidyut Transmission Pvt Ltd

23. IndiaVenture Advisors Pvt. Ltd.

24 Bonanaza Trading Company Private Limited

7. Previous year figures have been regrouped/recast wherever considered necessary to facilitate comparison.


Mar 31, 2012

The accompanying notes form an integral part of financial statements

NOTES to the financial statements as at and for the year ended 31st March, 2012

1. OVERVIEW

Jindal Steel & Power Limited which commenced operations in the year 1991 is one of the India's leading steel producers with significant presence in sector like mining, power generation and infrastructure. It is listed on the National Stock Exchange of India and Bombay Stock Exchange in India. Its business is spread across India and overseas. The corporate office is situated in New Delhi and the manufacturing Plants in India are in the states of Chhattisgarh, Odisha, Jharkhand etc. The Company has global presence in Australia, Brasil, Bolivia, China, Mongolia, Mozambique, Madagascar, Indonesia, South Africa, Sultanate of Oman, Tanzania and Zambia. There are several business initiatives running simultaneously across continents.

(Rs. in Crore) Current Year Previous Year

2 CONTINGENT LIABILITIES AND COMMITMENTS

I. Contingent Liabilities not provided for in respect of:

Description

a) Guarantees issued by the Company's Bankers on behalf of the Company 376.02 351.11

b) Letter of credit opened by banks 628.90 1,453.12

c) Corporate guarantees/undertakings issued on behalf of third parties. 3,333.79 3,359.50

d) Disputed Excise Duty and Other demands 780.96 684.77

e) Bonds executed for machinery imports under EPCG Scheme 2773.22 3,039.99

f) Income Tax demands where the cases are pending at various stages of appeal 187.76 187.21 with the authorities

g) Claims against the Company, not acknowledge as debt

30 In the opinion of the Board, Current Assets, Loans and Advances have a value on realisation in the ordinary course of business at least equal to the amount at which they are stated and provision for all known liabilities has been made and considered adequate.

3 a) Provision for current income tax has been made considering various benefits and allowances available to the Company under the provisions of the Income Tax Act, 1961.

B. PROVIDENT FUND

The Company contributed/ provided Rs. 22.97 crore and Rs. 7.83 crore towards provident fund during the year ended 31st March, 2012 & 31st March, 2011 respectively.

The Guidance on Implementing AS 15, Employee Benefits ( Revised 2005) issued by Accounting Standards Board (ASB) of the ICAI states that benefits involving employer established provident funds, which require interest shortfalls to be recompensed are to be considered as defined benefit plans. The Actuarial Society of India has issued the final guidance for measurement of provident fund liabilities. The actuary has accordingly provided a valuation and based on the below assumptions made a provision of Rs. 10.38 crore as at 31st March, 2012 (Previous Year Rs. nil)

4 The Company has over the years, expanded its steel power & mining businesses, both in India and internationally. The Company had expanded its diamond exploration business by making business investment in the diamond mines in the Democratic Republic of Congo, so as to be part of global production & marketing hub in Africa. Since the diamond exploration business was making continuous losses and the business investment(s) made by the Company had impaired, it was decided to dispose off such investment(s), in order to prevent any further business losses. Accordingly, an amount of Rs. 167.20 crore has been disclosed as "Loss arising from Business investment(s)" under Note no. 28 Other Expenses in the Statement of Profit & Loss.

5 Disclosure as required by Accounting Standard (AS-17)' Segment Reporting':

The primary reportable segments are the business segments namely Iron & Steel and Power. The secondary reportable segments are geographical segments which are based on the sales to customers located in India and outside India.

Segment accounting policies are in line with the accounting policies of the Company. In addition, the following specific accounting policies have been followed for segment reporting:

a) Segment revenue includes sales and other income directly identifiable with/allocable to the segment including inter- segment revenue.

b) Expenses that are directly identifiable with/allocable to segments are considered for determining the segment results.

c) Expenses/Incomes which relates to the Company as a whole and not allocable to segments are included under Other Un- allocable Expenditure (net of Un-allocable Income).

d) Segment assets and liabilities include those directly identifiable with respective segments. Un-allocable assets and liabilities represent the assets and liabilities that relate to Company as a whole and not allocable to any segment.

6 DISCLOSURES AS REQUIRED BY ACCOUNTING STANDARD (AS-18) 'RELATED PARTY DISCLOSURES':

A. List of Related Parties and Relationships

a) Subsidiaries, Step down Subsidiaries I. Subsidiaries

1. Jindal Minerals & Metals Africa Limited (Cease to exist as subsidiary w.e.f. 26.03.2012)

2. Jindal Power Limited

3. Jindal Steel & Power (Mauritius) Limited

4. Jindal Steel Bolivia SA

II. Subsidiaries of Jindal Power Limited

1. Attunli Hydro Electric Power Company Limited

2. Etalin Hydro Electric Power Company Limited,

3. Jindal Hydro Power Limited,

4. Jindal Power Distribution Limited

5. Jindal Power Trading Company Limited

6. Jindal Power Transmission Limited

7. Subansiri Hydro Electric Power Company Limited,

III. Subsidiaries of Jindal Minerals & Metals Africa Limited

1. Jindal Minerals and Metals Africa Congo SPRL(Cease to exist as subsidiary w.e.f. 26.03.2012)

IV. Subsidiaries of Jindal Steel & Power (Mauritius) Limited

1. Affiliate Overseas Limited (Cease to exist as subsidiary w.e.f. 28.10.2011)

2. Enduring Overseas Limited

3. Harmony Overseas Limited

4. Jindal Africa Investments (Pty) Limited

5. Jindal Brasil Mineracao SA

6. Jindal DRC SPRL(Cease to exist as subsidiary w.e.f. 26.03.2012)

7. Jindal Investimentos LDA

8. Jindal Investment Holdings Limited

9. Jindal Madagascar SARL

10. Jindal Mining & Exploration Limited

11. Jindal Mining Industry LLC

12. Jindal Power LLC

13. Jindal Steel & Power (Australia) Pty Limited

14. Jindal Steel & Power Zimbabwe Limited

15. JSPL Mozambique Minerais LDA

16. Jubilant Overseas Limited

17. Jindal Zambia Limited

18. Jin Africa Limited

19. Jindal Tanzania Limited

20. Osho Madagascar SARL

21. PT Jindal Overseas

22. Rolling Hills Resources LLC

23. Shadeed Iron & Steel Co. LLC

24. Skyhigh Overseas Limited

25. Trans Atlantic Trading Limited

26. Vision Overseas Limited

27. Worth Overseas Limited

V Others

1. Belde Empreendimentos Mineiros Limited, a subsidiary of JSPL Mozambique Minerais LDA

2. Eastern Solid Fuels (Pty) Limited, a subsidiary of Jindal Mining & Exploration Limited

3. Gas to Liquids International S.A., a subsidiary of Worth Overseas Limited

4. Jindal Mining (Pty) Limited, a subsidiary of Eastern Solid Fuels (Pty) Limited

5. Kasai Sud Diamant, a subsidiary of Jindal DRC SPRL(Cease to exist as subsidiary w.e.f. 26.03.2012)

b) Associates

1. Angul Sukinda Railway Limited

2. Nalwa Steel & Power Limited

3. FB Infra Private Limited (w.e.f. 17.01.2012)

4. Jindal Infosolutions Limited

c) Joint Ventures

1. Jindal Synfuels Limited

2. Shresht Mining and Metals Private Limited

3. Urtan North Mining Private Limited

d) Key Management Personnel

1. Shri Naveen Jindal (Chairman & Managing Director)

2. Shri Vikrant Guj'ral (Group Vice Chairman & Head Global Ventures)

3. Shri Anand Goel (Jt. Managing Director, Corporate Affairs)

4. Shri Naushad Akhter Ansari (Wholetime Director)

e) Enterprises over which Key Management Personnel and their relatives exercise significant influence and with whom transactions have taken place during the year

1. Advance Sporting Arms Private Limited

2. Bir Plantation Private Limited

3. Gagan Infraenergy Limited

4. India Flysafe Aviation Limited

5. Jindal Coal Private Limited

6. Jindal Realty Private Limited

7. Jindal Rex Exploration Private Limited

8. Jindal Saw Limited

9. Jindal Stainless Limited

10. Jindal System Private Limited

11. Minerals Management Services (India) Private Limited

12. Nalwa Sons Investment Limited

13. Opelina Finance and Investment Limited

14. Trishakti Real Estate Infrastructure and Developers (P) Limited

15. Uttam Vidyut Transmission Private Limited

16. Yno Finvest Private Limited

f) Relative of Key Management Personnel Shri Paras Goel


Mar 31, 2011

1. Contingent Liabilities not provided for in respect of:

(Rs. in Crores)

Description Current Year Previous Year

a) Guarantees issued by the Company's Bankers on behalf of the Company 351.11 323.39

b) Letter of credit opened by banks 1,453.12 1,234.89

c) Corporate guarantees/undertakings issued on behalf of third parties. 3,359.50 1,825.95

d) Disputed excise duty and other demands 684.77 632.30

e) Future liability on account of lease rent for unexpired period. - 8.85

f) Bonds executed for machinery imports under EPCG Scheme 3,039.99 2,529.15

g) Income Tax demands where the cases are pending at various stages of 187.21 111.03 appeal with the authorities

2. Estimated amount of contracts remaining to be executed on capital account and not provided for (net of advances): Rs. 3,763.48 crores (Previous year Rs. 6,163.80 crores).

3. one of the Company's expansion units at Raigarh (Chhattisgarh) is eligible for sales tax exemption owing to its investment in capital assets under the State industrial policy which aims towards the objective of industrialisation of the State and development of backward areas. The period of exemption is linked to the quantum of investment. The Company has been advised that the element of sales tax included in the sales price of products sold out of this Unit is in the nature of sales tax subsidy granted by the State Government. Accordingly, the same amounting to Rs. 32.23 crores (Previous year Rs. 33.33 crores) has been credited during the year to Sales Tax Subsidy Reserve Account. The cumulative amount credited to Sales tax Subsidy Reserve Account up to 31st march, 2011 is Rs.197.19 crores (Previous year Rs. 164.96 crores).

4. in accordance with Accounting Standard (AS-29) 'Provisions, Contingent Liabilities and Contingent Assets' and based on management assessment, the Company had made a provision for contingencies on account of duties and taxes payable under various laws. At the beginning of the financial year, there was an outstanding provision of Rs. 156.02 crores (Previous year Rs. 156.02 crores) included in 'other outstanding Liabilities'. No provision/utilisation was made either in the current year or in the previous year. At the end of the financial year, there is an outstanding provision of Rs. 156.02 crores (Previous year Rs.156.02 crores).

5. the employees Stock option Scheme - 2005 (eSoS- 2005) was approved by the shareholders of the Company in their Annual General meeting held on 25th July, 2005 and amended by shareholders on 27th September, 2006. under eSoS-2005, a maximum of 11,00,000 (Eleven lacs) equity shares of Rs. 5 each could be granted to the employees of the Company and its subsidiary company(ies). in-principle approval from National Stock exchange of india Limited and Bombay Stock exchange Limited was given on 01.02.2006. A Compensation Committee was constituted by the Board of directors of the Company in their meeting held on 12th may, 2005 for the administration of eSoS-2005. under eSoS-2005, the Compensation Committee has granted stock options as follows:

a) 8,59,400 (eight lacs ffty nine thousand four hundred) stock options on 26.11.2005 at an exercise price of Rs. 1,014 per share (Series I) which would vest after 2 years from the date of grant to the extent of 50% (Part 1), after 3 years from the date of grant to the extent of 25% (Part 2) and after 4 years from the date of grant to the extent of 25% (Part 3);

b) 1,29,550 (one lac twenty nine thousand five hundred fifty) stock options on 02.09.2006 at an exercise price of Rs. 1,121 per share (Series II) which would vest after 2 years from the date of grant to the extent of 50% (Part 1), after 3 years from the date of grant to the extent of 25% (Part 2) and after 4 years from the date of grant to the extent of 25% (Part 3); and

c) 1,36,950 (one lac thirty six thousand nine hundred fifty) stock options on 27.04.2007 at an exercise price of Rs.1,819 per share (Series III) which would vest after 2 years from the date of grant to the extent of 50% (Part 1), after 3 years from the date of grant to the extent of 25% (Part 2) and after 4 years from the date of grant to the extent of 25% (Part 3).

Pursuant to Clause 5.3 (f) of SEBI (Employees Stock option Scheme and employees Stock Purchase Scheme) Guidelines, 1999 and Para 18 of the eSoS- 2005 of the Company, the Compensation Committee is authorised to make a fair and reasonable adjustment to the number of options and to the exercise price in respect of options granted to the employees under the Scheme in case of corporate actions such as right issue, bonus issue, merger etc. on 27.12.2007, sub-division of the face value of each equity share of the Company from Rs. 5 to 5 equity shares of Re. 1 each was approved by the shareholders in their General meeting. thereafter, the Compensation Committee has, in its meeting held on 27.01.2008, made an adjustment to the exercise price by reducing it in case of Series I to Rs. 203 Series II to Rs. 225 and Series III to Rs. 364 per equity share of Re. 1 each and to the number of options by increasing it 5 times the original grant consequent to which the number of maximum options that could be issued under the eSoS-2005 increased to 55,00,000 (Fifty five lacs) [originally 11,00,000 (Eleven lacs)]

Thereafter, the following allotments of equity shares were made under eSoS-2005 on the exercise of options:

a) 6,91,343 (Six lacs ninety one thousand three hundred forty three) equity shares of Re. 1 each were allotted on 16th June, 2008 on exercise of options granted under Part 1 of Series I of eSoS-2005;

b) 57,136 (Fifty seven thousand one hundred thirty six) equity shares of Re. 1 each were allotted on 13th April, 2009 on exercise of options granted under Part 1 of Series ii of eSoS-2005;

c) 4,20,487 (Four lacs twenty thousand four hundred eighty seven) equity shares of Re. 1 each were allotted on 21st July, 2009 on exercise of options granted under Part 2 of Series i of eSoS-2005.

The remaining 43,31,034 (Forty three lacs thirty one thousand thirty four) equity shares of Re. 1 each were available for allotment under eSoS-2005 after the above 3 allotments.

On 4th September, 2009, issue of 5 equity shares of Re. 1 each as bonus shares on each existing equity share of the Company was approved by the shareholders in their General meeting and on 19th September, 2009, fully paid-up bonus shares were allotted.

Thereafter, pursuant to clause 5.3 (f) of SEBI (employees Stock option Scheme and employees Stock Purchase Scheme) Guidelines, 1999 and Para 18 of the eSoS-2005 of the Company, the Compensation Committee has, in its meeting held on 31st october, 2009 made the following adjustments:-

a) The number of unexercised options and options yet to be granted is increased by 5 times consequently increasing the number of unexercised and options yet to be granted from 43,31,034 (Forty three lacs thirty one thousand thirty four) to 2,59,86,204 (two Crores fifty nine lacs eighty six thousand two hundred four);

b) The price of unexercised options was reduced in case of Series I to Rs. 34, Series II to Rs. 38 and Series III to Rs. 61 per equity share of Re. 1 each.

In-principle approval for listing of additional 2,16,55,170 (two Crores sixteen lacs fifty five thousand one hundred seventy) equity shares were obtained from National Stock exchange of india Limited and Bombay Stock exchange Limited.

Thereafter, the following allotments of equity shares were made under eSoS-2005 on exercise of options:-

a) 4,52,246 (Four lacs fifty two thousand two hundred forty six) equity shares of Re. 1 each were allotted on 30th January, 2010 on exercise of options granted under Part 1 of Series III of eSoS-2005;

b) 2,52,006 (two lacs fifty two thousand six) equity shares of Re. 1 each were allotted on 13th April, 2010 on exercise of options granted under Part 2 of Series ii of eSoS-2005;

c) 24,56,922 (twenty four lacs fifty Six thousand nine hundred twenty two) equity shares of Re. 1 each were allotted on 23rd June, 2010 on exercise of options granted under Part 3 of Series I of eSoS-2005;

6. a) Provision for current income tax has been made considering various benefits and allowances available to the Company under the provisions of the Income Tax Act, 1961.

7. Additions/(Adjustments) to Plant and machinery/Capital work-in-progress includes addition of Rs. 165.92 crores [Previous year adjustment of Rs. (149.87) crores] on account of foreign exchange fluctuation on long-term liabilities relating to acquisition of Fixed Assets pursuant to the Notification issued by the ministry of Corporate Affairs relating to Accounting Standard (AS-11) 'the effects of Changes in Foreign exchange Rates'.

8. Sales/Adjustments in gross block and depreciation under Schedule 5 includes the assets taken out of active use during the financial year of Rs. Nil and Rs. Nil (Previous year Rs. 19.80 crores and Rs. 1.89 crores) respectively. these items of fixed assets are included in the inventory of stores & spares at estimated realisable value.

9. expenditure on Research & development Activities, incurred during the year, is Rs. 12.25 crores (including capital expenditure of Rs. 6.45 crores) (Previous year Rs. 3.71 crores, including capital expenditure of Rs. 0.50 crores).

10. The Company has unquoted investments of Rs. 1,219.25 crores in body corporates (Previous year Rs. 1,075.78 crores). The management had made a provision for diminution in the value of investments of Rs. 11.54 crores during the earlier years. Based on the financial position of the investee companies, the management is of the view that the provision created is adequate.

11. in the opinion of the Board, Current Assets, Loans and Advances have a value on realisation in the ordinary course of business at least equal to the amount at which they are stated and provision for all known liabilities has been made.

12. Advances recoverable in cash or in kind or for value to be received includes Rs. 0.18 crores (Previous year Rs. 0.16 crores) being the amount due from directors/officers of the Company. maximum amount outstanding at anytime during the year was Rs. 0.45 crores (Previous year Rs. 0.48 crores).

13. the Company has so far not received information from vendors regarding their status under the micro, Small and medium enterprises development Act, 2006 and hence disclosure relating to amounts unpaid as at the year-end together with interest paid/payable under this Act has not been given.

14. The Company has paid lease rentals of Rs. 7.87 crores (Previous year Rs. 6.84 crores) under cancellable operating leases. there are no non-cancellable operating leases.

15. donations include Rs. Nil (Previous year Rs. 0.50 crores) to Haryana Pradesh Congress Committee, being a political party.

16. Borrowing cost incurred during the year and capitalised by the Company is Rs. 71.02 crores (Previous year Rs. 0.28 crores). Borrowing Cost incurred during the year and transferred to Capital Work in Progress by the Company is Rs. 202.69 crores (Previous year Rs. 108.81 crores).

17. in the previous year, dividend proposed relating to the shares under eSoP was made on the basis of options vested but not exercised till the end of the financial year. Provision made in respect of options lapsed and not exercised in the current year has been adjusted with the dividend proposed for the year ended on 31st march, 2011.

18. The Company has made a provision of Rs. 3.75 crores (Previous year Rs. 4.28 crores) net of reversal of Rs. 0.02 crores (Previous year Rs. Nil) for Corporate dividend tax on the amount of dividend proposed for the year ended 31st march, 2011 after considering the set-off of interim dividend declared by a subsidiary company for the same financial year, as per the provisions of section 115-o of the income tax Act, 1961.

19. disclosures as required by Accounting Standard (AS-17) 'Segment Reporting':

The primary reportable segments are the business segments namely iron & Steel and Power. the secondary reportable segments are geographical segments which are based on the sales to customers located in India and outside India.

Segment accounting policies are in line with the accounting policies of the Company. in addition, the following specific accounting policies have been followed for segment reporting:

a) Segment revenue includes sales and other income directly identifiable with/allocable to the segment including inter-segment revenue.

b) expenses that are directly identifiable with/allocable to segments are considered for determining the segment results.

c) Expenses/Incomes which relates to the Company as a whole and not allocable to segments are included under other un-allocable expenditure (net of un-allocable income).

d) Segment assets and liabilities include those directly identifiable with respective segments. un-allocable assets and liabilities represent the assets and liabilities that relate to Company as a whole and not allocable to any segment.

20. disclosure as required by Accounting Standard (AS-18) 'Related Party disclosures':

The names of related parties where control exist and/or with whom transactions have taken place during the year and description of relationship as identified and certifed by the management are:

A. List of Related Parties and Relationships

a) Subsidiaries & Step-down Subsidiaries

I. Subsidiaries

1. Jindal minerals & metals Africa Limited

2. Jindal Power Limited

3. Jindal Steel & Power (mauritius) Limited

4. Jindal Steel Bolivia SA

ii. Subsidiaries of Jindal Power Limited

1. Attunli Hydro electric Power Company Limited

2. etalin Hydro electric Power Company Limited

3. Jindal Hydro Power Limited

4. Jindal Power distribution Limited

5. Jindal Power trading Company Limited (formerly Chhattisgarh energy trading Company Limited)

6. Jindal Power transmission Limited

7. Subansiri Hydro electric Power Company Limited

iii. Subsidiaries of Jindal minerals & metals Africa Limited

1. Jindal minerals and metals Africa Congo SPRL

iv. Subsidiaries of Jindal Steel & Power (mauritius) Limited

1. Affiliate overseas Limited

2. enduring overseas Limited

3. Harmony overseas Limited

4. Jindal Africa investments (Pty) Limited

5. Jindal Brasil mineracao SA

6. Jindal dRCSPRL

7. Jindal Investments LdA

8. Jindal investment Holdings Limited

9. Jindal madagascar SARL

10. Jindal minerals mining Limited (till 03.11.2010)

11. Jindal mining & exploration Limited

12. Jindal mining industry LLC

13. Jindal Power LLC

14. Jindal Steel & Power (Australia) Pty Limited (w.e.f. 15.06.2010)

15. Jindal Steel & Power Zimbabwe Limited (w.e.f. 06.05.2010)

16. JSPL mozambique Minerals LdA

17. Jubilant overseas Limited

18. osho madagascar SARL

19. Pt Jindal overseas

20. Rolling Hills Resources LLC

21. Shadeed iron & Steel Co. LLC (w.e.f. 29.06.2010)

22. Skyhigh overseas Limited

23. trans Atlantic trading Limited

24. Vision overseas Limited

25. worth overseas Limited V. others

1. Belde empreendimentos mineiros Limited, a subsidiary of JSPL mozambique Minerals LdA

2. eastern Solid Fuels (Pty) Limited, a subsidiary of Jindal mining & exploration Limited

3. Gas to Liquids international SA, a subsidiary of worth overseas Limited

4. Jindal mining (Pty) Limited, a subsidiary of eastern Solid Fuels (Pty) Limited

5. Kasai Sud diamant, a subsidiary of Jindal dRC SPRL

b) Associates

1. Angul Sukinda Railway Limited

2. Nalwa Steel & Power Limited

3. Saras mineracao de Ferro S.A. (Associate of Jindal Steel & Power mauritius Limited) (till 02.06.2010)

4. Jindal infosolutions Private Limited (w.e.f. 30.03.2011)

c) Joint Ventures

1. Jindal Synfuels Limited (formerly Jindal Coal to Liquid Limited)

2. Shresht mining and metals Private Limited

3. urtan North mining Private Limited

d) Key Management Personnel

1. Shri Naveen Jindal (exec. Vice Chairman & managing director)

2. Shri Vikrant Gujral (Group Vice Chairman & Head Global Ventures)

3. Shri Anand Goel (Jt. managing director, Corporate Affairs)

4. Shri Arun K. mukherji (whole time director upto 23.11.2010)

5. Shri Naushad Akhter Ansari (whole time director from 01.12.2010)

e) Enterprises over which Key Management Personnel and their relatives exercise significant infuence and with whom transactions have taken place during the year

1. Advance Sporting Arms Private Limited

2. Bir Plantation Private Limited

3. Gagan infraenergy Limited (formerly Gagan Sponge iron Limited)

4. india Flysafe Aviation Limited

5. Jindal Coal Private Limited

6. Jindal Realty Private Limited

7. Jindal Rex exploration Private Limited

8. Jindal Saw Limited

9. Jindal Stainless Limited

10. Jindal System Private Limited

11. minerals management Services (india) Private Limited (formerly minerals management Services (india) Limited)

12. Nalwa Sons investment Limited

13. opelina Finance and investment Limited

14. trishakti Real estate infrastructure and developers (P) Limited

15. uttam Vidyut transmission Private Limited

16. YNo Finvest Private Limited

21. Financial and derivative instruments:

a) Derivatives contracts entered into by the Company and outstanding as on 31st march, 2011, for hedging currency and interest rate related risks:

c) In accordance with the accounting policy on financial derivative instruments, during the year, the company has recognised mark to market losses of Rs. 21.62 crores (Previous year Rs. Nil being market to market gains).

22. Previous year figures have been regrouped and/or rearranged wherever considered necessary to facilitate comparison with current year figures.


Mar 31, 2010

1. Contingent Liabilities not provided for in respect of:

(Rs.in Crores) Description Current Year Previous Year

a) Guarantees issued by the Companys Bankers on behalf of the Company 323.39 332.91

b) Letter of credit opened by banks 1234.89 1315.35

c) Corporate guarantees / undertakings issued on behalf of third parties. 1825.95 126.41

d) Disputed Excise Duty and Other demands 632.30 213.77

e) Future liability on account of lease rent for unexpired period. 8.85 -

f) Bonds executed for machinery imports under EPCG Scheme 2529.15 1103.10

g) Income Tax demands where the cases are pending at various 111.03 109.81 stages of appeal with the authorities

2. Estimated amount of contracts remaining to be executed on capital account and not provided for (net of advances): Rs. 6163.80 Crores (Previous year Rs. 4517.09 Crores).

3. In accordance with the guiding principles enunciated in Accounting Standard (AS-29) Provisions, Contingent Liabilities and Contingent Assets and based on management assessment, the Company has made a provision for contingencies on account of duties and taxes payable under various laws. At the beginning of the financial year, there was an outstanding provision of Rs. 156.02 Crores (Previous year Rs. 107.49 Crores).The Company made an additional provision of Rs. Nil during the year (Previous year Rs. 48.53 Crores) and the amount utilised during the year was Rs. Nil (Previous year Rs. Nil). At the end of the financial year, there is an outstanding provision of Rs. 156.02 Crores (Previous year Rs. 156.02 Crores).

4. One of the Companys expansion units at Raigarh (Chhattisgarh) is eligible for sales tax exemption owing to its investment in capital assets under the State industrial policy which aims towards the objective of industrialisation of the State and development of backward areas. The period of exemption is linked to the quantum of investment. The Company has been advised that the element of sales tax included in the sales price of products sold out of this Unit is the nature of sales tax subsidy granted by the State Government. Accordingly, the same amounting to Rs. 33.33 Crores (Previous year Rs. 50.04 Crores) has been credited during the year to Sales Tax Subsidy Reserve Account. The cumulative amount credited to Sales Tax Subsidy Reserve Account up to 31st March, 2010 is Rs. 164.96 Crores (Previous year Rs. 131.63 Crores).

5. a) Provision for current income tax has been made considering various benefits and allowances available to the Company under the provisions of the Income Tax Act, 1961.

6. Additions / (Adjustments) to Plant and Machinery/Capital work-in-progress includes adjustment of Rs. 149.87 Crores (Previous year Rs. (377.39) Crores) on account of foreign exchange fluctuation on long-term liabilities relating to acquisition of Fixed Assets.

7. Donations include Rs. 0.50 Crores (Previous year Rs. Nil) to Haryana Pradesh Congress Committee and Rs. Nil (Previous year Rs. 0.02 Crores) to Keonjhar District Congress Committee as contribution to political parties.

8. Sales / Adjustments in gross block and depreciation under Schedule 5 includes the assets taken out of active use during the financial year of Rs. 19.80 Crores and Rs. 1.89 Crores (Previous year Rs. Nil and Rs. Nil) respectively. The resultant net block of Rs. 17.91 Crores (Previous year Rs. Nil) has been considered under inventory of stores & spares.

9. The Employees Stock Option Scheme - 2005 (ESOS-2005) was approved by the shareholders of the Company in their Annual General Meeting held on 25th July, 2005 and amended by shareholders on 27th September, 2006. Under ESOS-2005, a maximum of 1,100,000 (Eleven lacs) equity shares of Rs. 5/- each could be granted to the employees of the Company and its subsidiary company(ies). In-principle approval from National Stock Exchange of India Limited and Bombay Stock Exchange Limited was given on 01.02.2006. A Compensation Committee was constituted by the Board of Directors of the Company in their meeting held on 12th May, 2005 for the administration of ESOS-2005. Under ESOS-2005, the Compensation Committee has granted stock options as follows:-

a) 859,400 (Eight lacs fifty nine thousand four hundred) stock options on 26.11.2005 at an exercise price of Rs. 1,014/- per share (Series - I) which would vest after 2 years from the date of grant to the extent of 50% (Part 1), after 3 years from the date of grant to the extent of 25% (Part 2) and after 4 years from the date of grant to the extent of 25% (Part 3);

b) 129,550 (One lac twenty nine thousand five hundred fifty) stock options on 02.09.2006 at an exercise price of Rs. 1,121/- per share (Series - II) which would vest after 2 years from the date of grant to the extent of 50% (Part 1), after 3 years from the date of grant to the extent of 25% (Part 2) and after 4 years from the date of grant to the extent of 25% (Part 3); and

c) 136,950 (One lac thirty six thousand nine hundred fifty) stock options on 27.04.2007 at an exercise price of Rs. 1,819/- per share (Series - III) which would vest after 2 years from the date of grant to the extent of 50% (Part 1), after 3 years from the date of grant to the extent of 25% (Part 2) and after 4 years from the date of grant to the extent of 25% (Part 3).

Pursuant to Clause 5.3 (f) of SEBI (Employees Stock Option Scheme and Employees Stock Purchase Scheme) Guidelines, 1999 and para 18 of the Employees Stock Option Scheme -2005 of the Company, the Compensation Committee is authorised to make a fair and reasonable adjustment to the number of options and to the exercise price in respect of options granted to the employees under the Scheme in case of corporate actions such as right issue, bonus issue, merger etc.

On 27.12.2007, sub-division of the face value of each equity share of the Company from Rs. 5/- to 5 equity shares of Re. 1/- each was approved by the shareholders in their General Meeting. Thereafter, the Compensation Committee has, in its meeting held on 27.01.2008, made an adjustment to the exercise price by reducing it in case of Series I to Rs. 203/- Series II to Rs. 225/- and Series III to Rs. 364/- per equity share of Re. 1/- each and to the number of options by increasing it 5 times the original grant consequent to which the number of maximum options that could be issued under the Employees Stock Option Scheme-2005 increased to 5,500,000 (Fifty five lacs) [originally 1,100,000 (Eleven lacs)]

Thereafter, the following allotments of equity shares were made under ESOS-2005 on the exercise of options:-

a) 691,343 (Six lacs ninety one thousand three hundred forty three) equity shares of Re. 1/- each were allotted on 16th June, 2008 on exercise of options granted under Part 1 of Series I of ESOS 2005;

b) 57,136 (Fifty seven thousand one hundred thirty six) equity shares of Re. 1/- each were allotted on 13th April, 2009 on exercise of options granted under Part 1 of Series II of ESOS 2005;

c) 420,487 (Four lacs twenty thousand four hundred eighty seven) equity shares of Re. 1/- each were allotted on 21st July, 2009 on exercise of options granted under Part 2 of Series I of ESOS 2005.

The remaining 4,331,034 (Forty three lacs thirty one thousand thirty four) equity shares of Re. 1/- each were available for allotment under ESOS -2005 after the above 3 allotments.

On 4th September, 2009, issue of 5 equity shares of Re. 1/- each as bonus shares on each existing equity share of the Company was approved by the shareholders in their General Meeting and on 19th September, 2009, fully paid-up bonus shares were allotted.

Thereafter, pursuant to Clause 5.3 (f) of SEBI (Employees Stock Option Scheme and Employees Stock Purchase Scheme) Guidelines, 1999 and para 18 of the Employees Stock Option Scheme - 2005 of the Company, the Compensation Committee has, in its meeting held on 31st October, 2009 made the following adjustments:-

a) The number of unexercised options and options yet to be granted is increased by 5 times consequently increasing the number of unexercised and options yet to be granted from 4,331,034 (Forty three lacs thirty one thousand thirty four) to 25,986,204 (Two Crores fifty nine lacs eighty six thousand two hundred four);

b) The price of unexercised options was reduced in case of Series I to Rs. 34/-, Series II to Rs. 38/- and Series III to Rs. 61/- per equity share of Re. 1/- each.

In-principle approval for listing of additional 21,655,170 (Two Crores sixteen lacs fifty five thousand one hundred seventy) equity shares were obtained from National Stock Exchange of India Limited and Bombay Stock Exchange Limited.

Thereafter, the following allotments of equity shares were made under ESOS-2005 on exercise of options:-

452,246 (Four lacs fifty two thousand two hundred forty six) equity shares of Re. 1/- each were allotted on 30th January, 2010 on exercise of options granted under part 1 of Series III of ESOS 2005.

10. The Company has unquoted investments of Rs. 1075.78 Crores in body corporates (Previous year Rs. 1071.88 Crores). Considering that the fall in the value of some of the investments had been a continuing one, the management had made a provision for diminution in the value of investments of Rs. 11.54 Crores during the earlier years. Based on the financial position of the investee companies, the management is of the view that the provision created as aforesaid is adequate.

11. In the opinion of the Board, Current Assets, Loans and Advances have a value on realisation in the ordinary course of business at least equal to the amount at which they are stated and provision for all known liabilities has been made.

12. The Company has so far not received information from vendors regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006 and hence disclosure relating to amounts unpaid as at the year-end together with interest paid / payable under this Act has not been given.

13. In the Previous year, dividend proposed relating to the shares under ESOP was made on the basis of options vested but not exercised till the end of the financial year. Provision made in respect of options lapsed and not exercised in the current year has been adjusted with the dividend proposed for the year ended on 31st March, 2010.

14. The Company has made a provision of Rs. 4.28 Crores (Previous year Rs. Nil) for Corporate Dividend Tax on the amount of dividend proposed for the year ended 31st March, 2010 after considering the set-off against corporate dividend tax payable by a subsidiary company on the interim dividend declared by it for the same financial year, as per the provisions of section 115-O of the Income Tax Act, 1961.

15.Segment Repoting as required by Accounting Standard (As-17) issued by the institute of chartered Accountants of india:

16. Related party disclosure as required by Accounting Standard (AS-18) issued by the Institute of Chartered Accountants of India:

A. List of Related Parties and Relationships

a) Subsidiaries, Step down Subsidiaries, Associates and Joint Ventures:

Subsidiaries

1. Jindal Minerals & Metals Africa Limited (JMMAL)

2. Jindal Power Limited (JPL)

3. Jindal Power Trading Company Ltd. [formerly Chhattisgarh Energy Trading Company Ltd (CETCL)], (Till 02.05.2009)

4. Jindal Steel & Power (Mauritius) Limited (JSPML)

5. Jindal Steel Bolivia SA (JSB)

Step down Subsidiaries

1. Affiliate Overseas Limited, a subsidiary of JSPML

2. Attunli Hydro Electric Power Company Limited, a subsidiary of JPL (w.e.f. 19.05.2009)

3. Belde Empreendimentos Mineiros Limited, a subsidiary of JSPL Mozambique Minerais LDA

4. Eastern Solid Fuels Pty. Limited, a subsidiary of Jindal Mining & Exploration Limited (w.e.f. 17.06.2009)

5. Enduring Overseas Limited, a subsidiary of JSPML

6. Etalin Hydro Electric Power Company Limited, a subsidiary of JPL (w.e.f. 16.05.2009)

7. Gas to Liquids International S.A., a subsidiary of WOL

8. Harmony Overseas Limited, a subsidiary of JSPML

9. Jindal Africa Investments (Pty) Limited, a subsidiary of JSPML

10. Jindal Brasil Mineracao SA, a subsidiary of JSPML

11. Jindal DRC SPRL, a subsidiary of JSPML (w.e.f. 30.06.2009)

12. Jindal Hydro Power Limited, a subsidiary of JPL

13. Jindal Investimentos LDA, a subsidiary of JSPML (w.e.f. 13.11.2009)

14. Jindal Investment Holdings Limited, a subsidiary of JSPML

15. Jindal Madgascar SARL, a subsidiary of JSPML (w.e.f. 01.09.2009)

16. Jindal Minerals and Metals Africa Congo SPRL, a subsidiary of JMMAL

17. Jindal Minerals Mining Limited, a subsidiary of JSPML (w.e.f. 04.06.2009)

18. Jindal Mining & Exploration Limited, a subsidiary of JSPML

19. Jindal Mining Industry LLC, a subsidiary of JSPML

20. Jindal Mining Pty. Limited, a subsidiary of Eastern Solid Fuels PTY Limited (w.e.f. 17.06.2009)

21. Jindal Petroleum (Georgia) Limited, a subsidiary of Jindal Petroleum (Mauritius) Limited, (Till 30.06.2009)

22. Jindal Petroleum (Mauritius) Limited, a subsidiary of Jindal Petroleum Limited, (Till 30.06.2009)

23. Jindal Petroleum Limited, a subsidiary of JPL, (Till 30.06.2009)

24. Jindal Petroleum Operating Company LLC, a subsidiary of Jindal Petroleum (Georgia) Ltd., (Till 30.06.2009)

25. Jindal Power Distribution Limited, a subsidiary of JPL

26. Jindal Power LLC, a subsidiary of JSPML

27. Jindal Power Trading Company Limited [formerly Chhattisgarh Energy Trading Company Limited (CETCL)], (From 02.05.2009), a subsidiary of JPL

28. Jindal Power Transmission Limited, a subsidiary of JPL

29. Jindal Steel & Power LLC, a subsidiary of JSPML, (wound up during 2009-10)

30. JSPL Mozambique Minerais LDA, a subsidiary of JSPML

31. Jubilant Overseas Limited, a subsidiary of JSPML

32. Kasai Sud Diamant, a subsidiary of Jindal DRC SPRL (w.e.f. 30.06.2009)

33. Osho Madagascar SARL, a subsidiary of JSPML

34. Power Plant Engineers Limited, a subsidiary of JPL, (Till 30.06.2009)

35. PT Jindal Overseas, a subsidiary of JSPML

36. Rolling Hills Resources LLC, a subsidiary of JSPML

37. Skyhigh Overseas Limited, a subsidiary of JSPML

38. Subansiri Hydro Electric Power Company Limited, a subsidiary of JPL

39. Trans Atlantic Trading Limited, a subsidiary of JSPML

40. Vision Overseas Limited, a subsidiary of JSPML

41. Worth Overseas Limited (WOL), a subsidiary of JSPML

Associates and Joint Ventures

1. Angul Sukinda Railway Limited

2. Globleq Singapore Pte. Limited, (Till 21.12.2009)

3. Jindal Synfuels Limited (formerly Jindal Coal to Liquid Limited)

4. Nalwa Steel & Power Limited (formerly known as Nalwa Sponge Iron Limited)

5. Saras Mineracao De Ferro SA (Under Process of Winding up) [Associate of Jindal Steel & Power (Mauritius) Limited]

6. Shresht Mining and Metals Private Limited, incorporated Joint Venture

b) Key Management Personnel:

1. Shri Naveen Jindal (Exec. Vice Chairman & Managing Director)

2. Shri Vikrant Gujral (Group Vice Chairman & Head Global Ventures)

3. Shri Anand Goel (Jt. Managing Director, Corporate Affairs)

4. Shri Arun K. Mukherji (Whole Time Director)

5. Shri Ashok Alladi (Whole Time Director upto 31.08.2009)

c) Enterprises over which Key Management Personnel and their relatives exercise significant influence and with whom transactions have taken place during the year:

1. Advance Sporting Arms Private Limited

2. Bir Plantation Private Limited

3. Gagan Infraenergy Limited (formerly Gagan Sponge Iron Limited)

4. India Flysafe Aviation Limited

5. Jindal Coal Private Limited

6. Jindal Realty Private Limited

7. Jindal Rex Exploration Private Limited

8. Jindal Saw Limited

9. Jindal Stainless Limited

10. Jindal System Private Limited

11. Minerals Management Services (India) Private Limited [formerly Minerals Management Services (India) Limited]

12. Nalwa Sons Investment Limited

13. Opelina Finance and Investment Limited

14. Trishakti Real Estate Private Limited

15. Uttam Vidyut Transmission Private Limited

16. Yno Finvest Private Limited

17. Advances recoverable in cash or in kind or for value to be received includes Rs. 0.16 Crores (Previous year Rs. Nil) being the amount due from directors/officers of the Company. Maximum amount outstanding at any time during the year was Rs. 0.48 Crores (Previous year Rs. 0.14 Crores).

18. Financial and Derivative Instruments:

a) Derivative contracts entered into by the Company and outstanding as on 31st March, 2010. For hedging currency and interest rate related risks:

c) As a measure of prudence, the Company has decided not to recognise any mark to market gains in respect of any outstanding derivative contracts.

The Companys interests in the above Joint Ventures is reported as Long Term Investment (Schedule 6) and stated at cost. However, the Companys share of assets, liabilities, income and expenses, etc. (each without elimination of the effect of transactions between the Company and the joint ventures) related to its interest in the Joint Ventures are:

19. Previous Year figures have been regrouped and/or rearranged wherever considered necessary to facilitate comparison with Current Year figures.

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