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Notes to Accounts of Jindal Steel & Power Ltd.

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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