1. Contingent Liabilities not provided for in respect of:
a) Bills Discounted Rs. 2,621.86 crores (Previous year Rs. 1,275.88
crores).
b) Guarantees provided to banks on behalf of subsidiaries (including
step down subsidiaries) and others Rs. 1,620.51 crores (Previous year Rs.
1,818.24 crores).
c) Disputed statutory claims/levies including those pending in Courts
(excluding interest, if any), in respect of:
(i) Excise Duty Rs.179.70 crores (Previous year Rs. 96.67 crores);
(ii) Customs Duty Rs. 242.87 crores (Previous year Rs. 108.07 crores);
(iii) Income Tax Rs. 12.47 crores (Previous year Rs. 12.47 crores);
(iv) Sales Tax / Special Entry taxRs. 72.36 crores (Previous year Rs.
0.35 crores);
(v) Service Tax Rs. 45.18 crores (Previous year Rs.24.86 crores);
(vi) Miscellaneous Rs. 0.05 crore (Previous year Rs. 0.05 crore); and
(vii) Levies by local authorities Rs. 3.04 crores (Previous year Rs. 3.04
crores).
d) Claims by Suppliers and other third parties not acknowledged as
debts Rs. 207.41 crores (Previous year Rs. 6.31 crores).
2. Estimated amount of contracts remaining to be executed on capital
account and not provided for (net of advances) Rs. 3,865.45 crores
(Previous year Rs. 3,644.94 crores).
3. During the year, the Company issued 1,75,00,000 optional
convertible warrants on a preferential basis, convertible into
1,75,00,000 equity shares at the option of the holder on or before 15
December 2011. At 31 March 2011, 25% of the issue price of the
warrants has been paid by the holders in accordance with the terms of
the issue.
4. Details of utilization of funds received on preferential allotment:
5. Derivatives:
a) The Company uses foreign currency forward contracts to hedge its
risks associated with foreign currency fluctuations relating to certain
firm commitments and highly probable forecast transactions. The use of
foreign currency forward contracts is governed by the Companys
strategy approved by the Board of Directors, which provide principles
on the use of such forward contracts consistent with the Companys Risk
Management Policy.
b) The Company also uses derivative contracts other than forward
contracts to hedge the interest rate and currency risk on capital
account. Such transactions are governed by the strategy approved by the
Board of Directors, which provide principles on the use of these
instruments, consistent with the Companys Risk Management Policy. The
Company does not use these contracts for speculative purposes.
c) The year end foreign currency exposures that have not been hedged by
a derivative instrument or otherwise are given below:
6. Research and Development Activities:
Disclosure as required under Section 35(2AB) of the Income Tax Act,
1961.
b) The manufacturing and other expenses and depreciation include Rs. 3.85
crores (previous year Rs. 3.23 crores) and Rs. 1.38 crores (Previous Year Rs.
0.83 crore), respectively, in respect of Research and Development
activities undertaken during the year.
7. Employee Benefits:
a) Defined Contribution Plan:
Companys contribution to Provident Fund Rs. 17.05 crores. (previous
year Rs. 12.89 crores)
The Company expects to contribute Rs. 12.22 crores to its Gratuity Plan
for the next year.
In assessing the Companys Post Retirement Liabilities, the Company
monitors mortality assumptions and uses up-to-date mortality tables,
the base being the LIC 1994-96 ultimate tables.
Expected return on plan assets is based on expectation of the average
long term rate of return expected on investments of the fund during the
estimated term of the obligations.
The estimates of future salary increase, considered in actuarial
valuation, take account of inflation, seniority, promotion and other
relevant factors, such as supply and demand in the employment market.
8. Segment Reporting:
The Company is primarily engaged in the business of manufacture and
sale of I ron and Steel Products. The Company has identified two
primary business segments, namely Steel and Power (used mainly for
captive consumption), which in the context of Accounting Standard 17 on
Segment Reporting constitute reportable segments.
9. Related Parties disclosure as per Accounting Standard (AS)-18:
A. List of Related Parties
Parties with whom the Company has entered into transactions during the
period where control exists :
1. Subsidiaries
JSW Steel (UK) Limited
JSW Steel Service Centre (UK) Limited
Argent Independent Steel (Holdings) Limited
JSW Natural Resources Limited
JSW Natural Resources Mozambique Limitada
JSW Steel (Netherlands) B.V.
JSW Steel Holding (USA) Inc.
JSW Steel (USA) Inc.
Periama Holdings LLC (West Virginia LLC) (w.e.f. 3.05.2010)
Planck Holdings LLC (w.e.f. 3.05.2010)
Rolling S Augering LLC (w.e.f. 3.05.2010)
Carreta Minerals LLC (w.e.f. 3.05.2010)
Periama Handling LLC (w.e.f. 3.05.2010)
Lower Hutchinson Minerals LLC (w.e.f. 3.05.2010)
Purest Energy LLC (w.e.f. 3.05.2010)
Meadow Creek Minerals LLC (w.e.f. 3.05.2010)
Keenan Minerals LLC (w.e.f. 3.05.2010)
Hutchinson Minerals LLC (w.e.f. 3.05.2010)
RC Minerals LLC (w.e.f. 3.05.2010)
Peace Leasing LLC (w.e.f. 3.05.2010)
Prime Coal LLC
JSW Panama Holdings Corporation
Inversiones Eurosh Limitada
Santa Fe Mining
Santa Fe Puerto S.A.
JSW Steel Processing Centres Limited
JSW Jharkhand Steel Limited
JSW Bengal Steel Limited
Barbil Benefication Company Limited
JSW Building Systems Limited
JSW Natural Resources India Limited
JSW ADMS Carvo Limited
2. Associates
Jindal Praxair Oxygen Company Private Limited
JSW Energy (Bengal) Limited
Ispat Industries Limited (w.e.f. 24.01.2011)
3. Joint Ventures
Vijayanagar Minerals Private Limited
Rohne Coal Company Private Limited
JSW Severfield Structures limited
Gourangdih Coal Limited
Toshiba JSW Turbine and Generator Private Limited
MJSJ Coal Limited
4. Key Management Personnel (KMP)
Mr. Sajjan Jindal
Mr. Seshagiri Rao M V S
Dr. Vinod Nowal
Mr. Y Siva Sagar Rao (Upto 15.05.2009)
Mr. Jayant Acharya
5. Relatives of Key Management Personnel
Mrs. Savitri Devi Jindal
6. Enterprises over which Key Management Personnel and Relatives of
such personnel exercise significant influence
JSW Energy Limited
JSL Limited
JSW Realty & Infrastructure Private Limited
Jindal Saw Limited
Jindal Steel & Power Limited
Jindal South West Holdings Limited
JSOFT Solutions Limited
Jindal Industries Limited
JSW Energy (Ratnagiri) Limited
JSW Cement Limited
JSW Jaigarh Port Limited
Nalwa Sons & Investments Limited
JSW Investments Private Limited
Reynold Traders Private Limited
Raj West Power Limited
JSW Power Trading Company Limited
JSW Aluminium Limited
O P Jindal Foundation
JSW Infrastructure & Logistic Limited
South West Port Limited
JSW Techno Projects Management Limited
Sapphire Technologies Limited
10. Operating Lease
a) As Lessor:
i. The Company has entered into lease arrangements, for renting :
- 2,279 houses (admeasuring approximately 1,410,997 square feet) at the
rate of Rs. 100/- per house per annum, for a period of 180 months.
- 662 houses (admeasuring approximately 330,453 square feet) at the
rate of Rs. 24/- per square feet per annum, for a period of 36 to 60
months.
- 1 house at the rate of Rs. 0.72 lacs per annum, for a period of 11
months.
- 9 houses (admeasuring approximately 645.15 square feet) at the rate
of Rs. 40/- per square feet per month per house, for a period of 60
months.
The agreements are renewable at the option of the lessee after the end
of the lease term.
The agreements are executed for a period of 11 to 60 months with a
renewable clause and also provide for termination at will by either
party giving a prior notice period of 1 to 3 months.
11. The Company has the following Joint venture interest in India as
at 31 March 2011:
Interest as Venturer
Vijayanagar Minerals Private Limited: Percentage of holding - 40%
(Previous year 40%)
Rohne Coal Company Private Limited: Percentage of holding -49%
(Previous year 49%)
JSW Severfield Structures Limited : Percentage of holding - 50%
(Previous Year 50%)
Gaurangdih Coal Limited : Percentage of holding - 50% (Previous Year
50%)
Interest as Investor
MJSJ Coal Limited: Percentage of holding - 11% (Previous year 11%)
Toshiba JSW Turbine and Generator Private Limited - 5% (Previous year
5%)
12. Comparative financial information (i.e. the amounts and other
disclosure for the preceding year) presented above, is included as an
integral part of the current years financial statements, and is to be
read in relation to the amounts and other disclosures relating to the
current year. Figures of the previous year are regrouped and
reclassified wherever necessary to correspond to figures of the current
year. |