File_2012_Document1

124 Jindal Steel & Power Limited Business Leadership Sustainable Operations Excellent Governance Robust FinancialsStandaloneAnnual Report 2011-12125NOTES to the financial statements as at and for the year ended 31st March, 2012 NOTES to the financial statements as at and for the year ended 31st March, 2012Thereafter, the following allotments of equity shares weremade under ESOS-2005 on the exercise of options:‐a) 691,343 (Six lacs ninety one thousand three hundredforty three) equity shares of ` 1/- each were allottedon 16th June, 2008 on exercise of options grantedunder Part 1 of Series I of ESOS 2005;b) 57,136 (Fifty seven thousand one hundred thirty six)equity shares of ` 1/- each were allotted on 13thApril, 2009 on exercise of options granted under Part1 of Series II of ESOS 2005;c) 420,487 (Four lacs twenty thousand four hundredeighty seven) equity shares of ` 1/- each were allottedon 21st July, 2009 on exercise of options grantedunder Part 2 of Series I of ESOS 2005.The remaining 4,331,034 (Forty three lacs thirty onethousand thirty four) equity shares of ` 1/- each wereavailable for allotment under ESOS -2005 after theabove 3 allotments.On 4th September, 2009, issue of 5 equity shares of` 1/- each as bonus shares on each existing equity shareof the Company was approved by the shareholders in theirGeneral Meeting and on 19th September, 2009, fully paidupbonus shares were allotted.Thereafter, pursuant to clause 5.3 (f) of SEBI (EmployeesStock Option Scheme and Employees Stock PurchaseScheme) Guidelines, 1999 and para 18 of the EmployeesStock Option Scheme - 2005 of the Company, theCompensation Committee has, in its meeting held on 31stOctober, 2009 made the following adjustments:-a) The number of unexercised options and options yetto be granted is increased by 5 times Consequentlyincreasing the number of unexercised options andoptions yet to be granted from 4,331,034 (Forty threelacs thirty one thousand thirty four) to 25,986,204(Two Crore fifty nine lacs eighty six thousand twohundred four);b) The price of unexercised options was reduced in caseof Series I to ` 34/-, Series II to ` 38/- and Series III to` 61/- per equity share of ` 1/- each.In-principle approval for listing of additional 21,655,170(Two crore sixteen lacs fifty five thousand one hundredseventy) equity shares were obtained from NSE andBSEs.Thereafter, the following allotments of equity shareswere made under ESOS-2005 on exercise of options:-452,246 (Four lacs fifty two thousand two hundredforty six) equity shares of ` 1/- each were allottedon 30th January, 2010 on exercise of options grantedunder part 1 of Series III of ESOS 2005.2,52,006 (Two lacs fifty two thousand six) equityshares of ` 1/- each were allotted on 13th April, 2010on exercise of options granted under part 2 of Series IIof ESOS 2005.24,56,922 (Twenty four lacs fifty Six thousand ninehundred twenty two) equity shares of ` 1/- each wereallotted on 23rd June, 2010 on exercise of optionsgranted under part 3 of Series I of ESOS 2005.3,26,021 (Three lacs twenty Six thousand twentyone) equity shares of ` 1/- each were allotted on1st February, 2011 on exercise of options grantedunder part 2 of Series III of ESOS 2005.2,40,564 (Two lacs forty thousand five hundred sixtyfour) equity shares of ` 1/- each were allotted on 14thApril, 2011 on exercise of options granted under part3 of Series II of ESOS 2005.3,24,223 (Three lacs twenty four thousand twohundred twenty three) equity shares of ` 1/- eachwere allotted on 12th December, 2011 on exerciseof options granted under part 3 of Series III of ESOS2005.The Details of ESOS-2005 are as under:ESOS-2005Series-I Series-II Series-III1 Grant Price – Rupees 34 38 612 Grant Date 26.11.2005 02.09.2006 27.04.20073 Vesting commences on 26.11.2007 02.09.2008 27.04.20094 Vesting Schedule 50% of grant on 26.11.2007,subsequent 25% of granton 26.11.2008 and balance25% of grant on 26.11.20095 Option granted andoutstanding at the beginningof the year6 Option granted during theyear (due to bonus shares)7 Option lapsed and/orwithdrawn during the period8 Option exercised during theyear against which shareswere allotted9 Option granted andoutstanding at the end of theyear of which- Options vested- Options yet to vest50% of grant on 02.09.2008,subsequent 25% of granton 02.09.2009 and balance25% of grant on 02.09.201050% of grant on 27.04.2009,subsequent 25% of granton 27.04.2010 and balance25% of grant on 27.04.2011- 2,40,564 7,40,625- - -- - 4,16,402- 2,40,564 3,24,223- - -As at31st March, 2012(` in Crore)As at31st March, 20114 RESERVES AND SURPLUSa) Sales Tax Subsidy/Capital ReserveAs per last financial statements 198.75 166.52Add: During the year 38.92 32.23Closing Balance 237.67 198.75One of the Company’s expansion units at Raigarh (Chhattisgarh) is eligible for sales tax exemption owing to its investmentin capital assets under the State industrial policy which aims towards the objective of industrialisation of the State anddevelopment of backward areas. The period of exemption is linked to the quantum of investment. The Company has beenadvised that the element of sales tax included in the sales price of products sold out of this Unit is in the nature of salestax subsidy granted by the State Government. Accordingly, the same amounting to ` 38.92 crore (Previous year ` 32.23crore) has been credited during the year to Sales Tax Subsidy Reserve Account. The cumulative amount credited to SalesTax Subsidy Reserve account up to 31st March, 2012 is ` 236.11 crore (Previous year ` 197.19 crore).b) Capital Redemption ReserveAs per last financial statements 70.00 70.00Add: During the year - -Closing Balance 70.00 70.00c) Securities Premium ReserveAs per last financial statements 118.93 92.24Add: Additions during the year on account of Employees' stock optionschemes2.83 11.01