The Directors are pleased to present the 33rd Annual Report together
with the Statement of Accounts for the year ended on 31st March, 2012.
AUDITED FINANCIAL RESULTS
(Rs. in Crore)
Particulars Standalone Consolidated
Financial financial Financial Financial
Year ended Year ended Year ended Year ended
31.03.2012 31.03.2011 31.03.2012 31.03.2011
Sales & other income 13,518.43 9,717.34 18,350.53 13,193.60
depreciation 4,246.95 3,725.72 6,935.11 6,398.17
Profit before tax 2,843.01 2,753.36 5,188.60 4,988.02
Profit after tax 2,110.65 2,064.12 4,002.26 3,804.01
Interim dividend - - 4.82 4.29
Final dividend 149.46 140.19 149.46 140.19
on dividend 3.15 3.75 25.03 23.44
General reserve 220.00 210.00 222.54 211.65
FURTHER ISSUE OF CAPITAL
During the period under report the Company has allotted 3,24,223 equity
shares of Rs. 1/- each on 12th December, 2011 against options granted
under the Company''s Employee Stock Option Scheme- 2005.
Your Directors recommend a dividend of Rs. 1.60 per equity share of Rs. 1/-
each i.e. 160% for the financial year 2011-12. The total dividend
pay-out for the year will amount to Rs. 149.46 crore (excluding dividend
The Company has, on a consolidated basis, achieved an aggregate income
of Rs. 18,350.53 crore compared to previous year''s Rs. 13,193.60 crore.
Profit before tax has increased to Rs. 5,188.60 crore in 2011-12 from Rs.
4,988.02 crore in 2010-11. Profit after tax has also grown to Rs.
4,002.26 crore in the year under report from Rs. 3,804.01 crore in the
previous year. The Reserves and Surplus have touched Rs. 18,017.63 crore.
The Company produced 13,19,940 MT of Sponge Iron during the year under
report as against previous year''s production of 13,19,840 MT and
achieved a capacity utilisation of 96.35%.
The production of steel products during the year under report, compared
to previous year is given below:
No. Product Production in MT
1. Finished steel products 19,44,434 15,85,327
2. Semi steel products 27,56,881 22,72,692
The Company produced 37,36,915 MT of pellets during the year under
report as against 27,87,285 MT in the previous year.
The Company generated 4,634 million Kwh of power during the year under
report as against last year''s 3,420 million Kwh of power.
Raipur Unit produced 1,778 metric tons of castings and has done
machining of 9,060 metric tons during the year under report as against
1,569 metric tons and 8,613 metric tons respectively in the previous
The production of calibrated iron ore at captive mine at Tensa in
Odisha was 5.06 lacs MT as against previous year''s production of 6.69
lacs MT. The Company has exported 2.45 lacs MT of iron ore fines as
against 8.42 lacs MT in the previous year. Coal production at captive
mine was 59.98 lacs MT as against previous year''s production of 59.99
Following projects were completed during the year under report:
1. Power Plants
(i) 540 MW (4X135 MW) power plant at Dongamahua, Raigarh Chhattisgarh:
Under Phase—II, Unit I and II of 135 MW each power generation capacity
were commissioned in January, 2012. Both the Units have stabilised
their operations. With this, all the four Units of 135 MW each power
generation capacity set up at Dongamahua, Raigarh, Chhattisgarh are
operational and generating power.
(ii) 810 MW (6x135 MW) power plant at Angul, Odisha: The Company is
setting up 810 MW (6x135 MW) captive power plant at Angul, Odisha for
meeting power requirement of its upcoming 6 MTPA integrated steel
plant. Second Unit of 135 MW power generation capacity was commissioned
in February, 2012. With this, two units of 135 MW each are operational
and generating power. Third Unit of 135 MW power generation capacity is
expected to be commissioned in July, 2012.
2. Machinery Division, Raipur, Chhattisgarh
The production capacity of Machinery Division of Raipur Unit has been
enhanced from 5,100 metric tons per annum to 10,000 metric tons per
annum by making investment in machine tools, expansion of covered area
and material handling equipment. The Company has received IBR
Certification as manufacturer of headers of Boilers and foundry items.
This Division is envisaging further expansion of its capacity by
inclusion of more covered area and material handling facility and has
planned to install Alfa Set Sand System in foundry for further
improvement in product quality. The Pressure Vessel Division with a
capacity of 2,500 metric tons per annum has started commercial
PROJECTS UNDER IMPLEMENTATION 1. Steel Plant at Angul, Odisha
The Company is setting up 6 MTPA steel plant at Angul in the state of
Odisha. The following facilities are, at present, under installation:
1.1) Coal Washery(2x 600 TPH)
1.2) Sponge Iron Plant based on Coal Gasification (1.8 MTPA)
1.3) Steel Melting Shop (1.64 MTPA)
1.4) Plate Mill (1.5 MTPA)
1.5) Captive Power Plant (6x135 MW)
Out of the above facilities under implementation, the construction of
Plate Mill has been completed and is expected to be commissioned in
financial year 2012-13. Apart from this, work on raw material handling
plant, beam welding plant, cross country pipeline, raw water reservoir,
in-take pump house and a housing colony is at an advanced stage of
The following facilities are also being set up at Angul:
1.1) Coke Oven Plant (2.0 MTPA)
1.2) Sinter Plant (4.0 MTPA)
1.3) Pellet Plant (4.0 MTPA)
1.4) Blast Furnace (3.2 MTPA)
1.5) Sponge Iron Plant (2.0 MTPA)
1.6) Steel Melting Shop (4.36 MTPA)
1.7) Hot Strip Mill (4.5 MTPA)
Department of Water Resources, Government of Odisha has given
permission for drawing of 95.16 cusecs of water from river Bramhani for
the plant. Ministry of Environment & Forests, Government of India has
issued environmental clearance and Odisha State Pollution Control Board
has issued consent to establish for setting up of said steel plant.
Technology suppliers for Sinter Plant (4.0 MTPA), Blast Furnace (3.2
MTPA) and Sponge Iron Plant (2.0 MTPA) have been finalised and
discussions are under progress for finalising technology suppliers for
2) Steel Plant at Patratu, Jharkhand
The Company envisages setting up of 6 MTPA integrated steel plant at
Patratu in the state of Jharkhand and in its first phase, is
implementing 3 MTPA steel plant.
Agreement has been signed with Government of Jharkhand for supply of
66.54 mem of water from Damodar Basin for
the plant and an agreement with Jharkhand State Electricity Board is
under process of renewal for supply of 20 cusecs of water. Ministry of
Environment & Forests, Government of India has issued environmental
clearance and State Pollution Control Board, Jharkhand has issued
consent to establish for setting up of said steel plant. The Company
has already acquired 1,039 acres of land and process is on for
acquiring balance 2,205 acres of land.
3) Steel plant, Raigarh, Chhattisgarh
The existing steelmaking capacity at Raigarh Works is 3 MTPA.
Considering the increasing demand for steel in coming years, the
Company plans to enhance steelmaking capacity at Raigarh Works to 11
MTPA and is in the process of seeking various approvals. The Company
has entered into memoranda of understanding with the State Government
of Chhattisgarh in terms of which the State Government of Chhattisgarh
will extend necessary assistance to the Company in expeditiously
obtaining various approvals, coal and iron ore linkages, environmental
clearances, acquisition of land etc. for implementing the said
expansion plan. Ministry of Environment and Forests, Government of
India has issued Terms of Reference (TOR) for the proposed expansion in
terms of which the Company has submitted draft Environment Impact
Assessment and Environment Management Plan to the Chhattisgarh
Environment Conservation Board, Raipur, Chhattisgarh.
In order to further improve and strengthen the present operations, the
following facilities are being added:-
3.1) Additional mill for pulverised coal injection is being set up
which will help in increasing the coal injection in Blast Furnace
thereby reducing the consumption of coal as well as improving the
3.2) Third Turbo-blower is being installed which will act as standby to
the existing two turbo blowers and ensure continuity of hot blast air
to Blast Furnace in case of shut down of any turbo.
3.3) Slab Caster upgradation is being done to increase the width of the
slabs. This will help in rolling the increased width plates from the
3.4) Additional 6 Silos are being set up to blend different kinds of
coal. Low cost coal is blended with high grade coking coal to reduce
the cost of blended coal and thus reduces the cost of coke. This will
reduce the cost of conversion of hot metal in Blast Furnace.
3.5) Second Ladle Refining Furnace is being installed in Steel Melting
Shop - III which will increase steel- making capacity by increasing the
capacity of secondary steel making.
4. Pellet Plant at Barbil, Odisha
The Company is setting up one more 4.5 MTPA Iron Ore Pellet Plant with
wet grinding process at Barbil for which basic engineering and
proprietary equipment have been ordered. Water approval, environmental
clearance and consent to establish for setting up 10 MTPA Pellet plant
at Barbil have already been received. Detailed engineering agency has
been finalised and critical packages ordering is in progress. The
pelletisation will be a value added process of iron ore fines and
better utilisation of powdery ore available in the mines.
5. Shadeed Sponge Iron Plant
Asa part of expansion, Shadeed Iron & Steel Co. LLC, Oman, a subsidiary
company, is setting up a 2 MTPA Steel Melting Shop. M/sDanieli, Italy
has been finalised as the technology and core equipment supplier and
M/s Idom, Spain has been finalised as the Engineering Consultant.
SUBSIDIARY COMPANIES AND THEIR
Jindal Power Limited (JPL), operating 1,000 MW (4 X 250 MW) power plant
in Raigarh (Chhattisgarh) has closed financial year 2011-12 with a
total sales of Rs. 3,040.35 crore and earned a profit after tax of Rs.
1,764.99 crore. JPL is expanding its power generation capacity by
setting up 2,400 MW (4 X 600 MW)
power plant adjacent to its existing works. JPL envisages setting up
hydro projects in the State of Arunachal Pradesh in Joint Venture with
Hydro Power Development Corporation of Arunachal Pradesh Limited and
thermal power projects in the states of Jharkhand and Odisha. Shadeed
Iron & Steel LLC, Oman, operating 1.5 MTPA Hot Briquette Iron plant
achieved sales of Rs. 2,794.30 crore in the financial year 2011-12 and
earned a profit after tax of Rs. 244.17 crore. Jindal Mining SA (Pty)
Limited, South Africa, operating coal mines achieved a sales of Rs.
451.02 crore in the financial year 2011-12 and earned a profit after
tax of Rs. 38.18 crore.
Africa continent and Australia are rich in mineral resources and your
Company, through its subsidiary companies, is expanding its business
activities by acquiring, exploring and operating iron, coal, limestone
and base metals. The operations in Kiepersol Colliery in South Africa
stabilised over the last year enabling a ramp up of production in the
coming years. The Company also continues to pursue more opportunities
in mining of coal, iron ore and manganese in this country. In
Mozambique, the coking coal project is in the final stages of
development. The sale is likely to start in financial year 2012-13.
TRANSFER TO INVESTOR EDUCATION AND PROTECTION FUND
Pursuant to Section 205C of the Companies Act, 1956, the Company has
transferred unpaid / unclaimed final dividend for financial year
2003-04 and interim dividend for financial year 2004-05 amounting to Rs.
20,03,753/- (Rupees twenty lacs three thousand seven hundred and fifty
three only) and Rs. 16,77,124/- (Rupees sixteen lacs seventy seven
thousand one hundred twenty four only) respectively to Investor
Protection Fund of Government of India. The details including last date
for claiming of unclaimed / unpaid dividend amount is given at the end
of the Notice of the Annual General Meeting.
EMPLOYEES STOCK OPTION
Details of allotment of shares made pursuant to Employees Stock Option
Scheme-2005 to the employees of the Company and its subsidiary, Jindal
Power Limited during the period under report is given below:
S.No. Series No. of Equity Date of
Shares Allotted Allotment
1 Series III (Part III) 3,24,223 12th
As required by clause 12 of SEBI (Employee Stock Option Scheme and
Employee Stock Purchase Scheme) Guidelines, 1999 information with
respect to active Stock Options as on 31st March, 2012 is given in a
separate statement as Annexure-I forming part of this Report.
The equity shares continue to be listed on BSE Limited (BSE) and the
National Stock Exchange of India Limited (NSE). Both these stock
exchanges have nation-wide terminals and therefore, shareholders /
Investors are not facing any difficulty in trading in the shares of the
Company from any part of the country. The Company has paid annual
listing fee for the financial year 2012- 13 to BSE & NSE and annual
custody fee to National Securities Depository Limited and Central
Depository Services (India) Limited. Shares issued against stock
options have been listed and trading permission has been granted by
these stock exchanges.
The Company has not received any fresh deposits during the year under
report. The aggregate amount outstanding in respect of fixed deposits
as on 31st March, 2012 was Rs. 37.22 crore against 6,938 fixed deposit
holders. Amount of deposits that have matured but were unclaimed as on
31st March, 2012 was Rs. 1.11 crore representing 384 deposit holders.
Since then 39 deposits totaling Rs. 16.28 lacs have been paid.
IDBI Bank Limited has withdrawn nomination of Shri S. Ananthakrishnan
from the Directorship from the close of business hours on 27th
February, 2012 and nominated Shri Inderpal Singh Kalra as Director
w.e.f. 28th February, 2012. Smt. Savitri Jindal and Shri Naushad
Akhter Ansari have resigned from the Directorship of the Company w.e.f.
26th April, 2012 and 01st May, 2012 respectively. Shri Haigreve
Khaitan, Shri Hardip Singh Wirk, Shri Rahul Mehra and Shri Sushil
Maroo, Directors of the Company will retire by rotation at the
forthcoming Annual General Meeting and being eligible have offered
themselves for re-appointment as Directors of the Company, liable to
retire by rotation, in the said meeting.
PARTICULARS OF CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND
FOREIGN EXCHANGE EARNINGS AND
Information pursuant to Section 217(1) (e) of the Companies Act, 1956
read with Rule 2 of the Companies (Disclosure of Particulars in the
Report of Board of Directors) Rules, 1988 regarding conservation of
energy, technology absorption and foreign exchange earnings and outgo
is given in Annexure II forming part of this report.
PARTICULARS OF EMPLOYEES
In terms of the provisions of Section 217(2A) of the Companies Act,
1956, read with the Companies (Particulars of Employees) Rules, 1975 as
amended from time to time, the particulars of employees are set out in
Annexure-lll to this Report. However, as per provisions of Section
219(l)(b)(iv) of the said Act read with Clause 32 of the Listing
Agreement, the Annual Report excluding the aforesaid information is
being sent to all the members of the Company and others entitled
thereto. Any member interested in obtaining such particulars may write
to the Company.
Your Company has implemented the conditions of Corporate Governance as
contained in Clause 49 of listing agreement. Separate reports on
Corporate Governance and Management Discussion and Analysis along with
necessary certificates are given elsewhere in this Annual Report as
Annexure IV & V.
BUSINESS RESPONSIBILITY REPORT
Ministry of Corporate Affairs (MCA), Government of India has, in July
2011, issued National Voluntary Guidelines on Social, Environmental and
Economic Responsibilities of Business (Guidelines). The Guidelines list
out nine principles and core elements on ethics, transparency and
accountability, sustainability, employee well being, responsiveness
towards stakeholders, promotion of human rights, environment
protection, influencing public policy, inclusive growth and equitable
development, value to customers and consumers.
The Companies in India are adviced to follow these Guidelines for
reporting their initiatives and activities relating to corporate social
responsibilities (CSR). The Company''s vision, mission and core values
enshrine these principles which are integral to the business of the
Company. The Company engages in elaborate CSR initiatives, conducts
business with transparency and accountability, looks after well being
and protection of the employees with a human face, is responsive to the
needs of all its stakeholders and takes care of quality of the products
manufactured by it, gives priority to preservation and protection of
environment and prevention of pollution and believes that business is
also a medium to contribute to the social development. Initiatives
undertaken during the year under report in respect of corporate social
responsibility, environment protection, industrial relations and human
resource management etc. are mentioned in detail in the Management
Discussion and Analysis Report which forms a part of this report as
M/s S.S.Kothari Mehta & Co. (Firm Registration Number - 0000756N),
Auditors of the Company hold office upto the conclusion of the ensuing
Annual General Meeting. The Company has received communication from
them to the effect that their appointment, if made, would be within the
limits prescribed under Section 224(1B) of the Companies Act, 1956.
They are proposed to be appointed as Auditors of the Company for the
financial year 2012-13.
DIRECTORS'' RESPONSIBILITY STATEMENT
Pursuant to the requirement under sub Section 2AA of Section 217 of the
Companies Act, 1956, with respect to the Directors Responsibility
Statement, it is hereby confirmed:-
i) that in preparation of the annual accounts for the financial year
ended on 31st March, 2012, the applicable accounting standards had been
followed along with proper explanations relating to material
ii) that the Directors had selected such accounting policies and
applied them consistently and made judgments and estimates that are
reasonable and prudent so as to give a true and fair view of the state
of affairs of the Company at the end of the financial year and of the
profit of the Company for the year under report.
iii) that the Directors had taken proper and sufficient care for the
maintenance of adequate accounting records in accordance with the
provisions of the Companies Act, 1956 for safeguarding the assets of
the Company and by preventing and detecting fraud and other
iv) that the Directors had prepared the accounts for the financial year
ended on 31st March, 2012 on a ''going concern basis''.
Your Directors wish to place on record their gratitude for the valuable
guidance and support rendered by the Government of India, various State
Government departments, Financial Institutions, Banks and various
stakeholders, such as, shareholders, customers and suppliers, among
others. The Directors also commend the continuing commitment and
dedication of the employees at all levels, which has been critical for
the Company''s success. The Directors look forward to their continued
support in future.
For and on behalf of the Board
Place: New Delhi NaveenJindal
Dated: 27th April, 2012 Chairman and Managing Director