File_2012_Document1

132 Jindal Steel & Power Limited Business Leadership Sustainable Operations Excellent Governance Robust FinancialsStandaloneAnnual Report 2011-12133NOTES 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, 2012(` in Crore)Gross Carrying Value Depreciation Net Carrying ValueBalance as at31st March,2011Balance as at31st March,2012Balance as at31st March,2012OtherAdjustmentsDepreciationfor theperiodBalance as at1st April,2011Balance as at31st March,2012OtherAdjustmentsAdditions Disposals/AdjustmentsParticulars Balance as at1st April,201112 FIXED ASSETSTangible AssetsLand Freehold 162.72 34.42 0.13 - 197.01 - - - - 197.01 162.72Land Leasehold 294.57 26.76 - - 321.33 7.53 4.03 - 11.56 309.77 287.04Live Stock 0.14 - - - 0.14 - - - - 0.14 0.14Buildings 1,358.26 366.44 1.99 11.34 1,734.05 116.42 43.84 0.62 159.64 1,574.41 1,241.84Plant and10,016.39 1,639.98 54.71 314.97 11,916.64 2,467.22 769.01 15.13 3,221.09 8,695.55 7,549.17EquipmentElectrical Fittings 352.84 42.71 5.76 - 389.78 33.22 17.36 0.87 49.71 340.07 319.6252.84 13.46 0.97 - 65.32 12.54 4.63 0.19 16.99 48.33 40.30Furniture andFixturesVehicles 185.34 18.78 3.68 - 200.44 71.42 18.65 1.14 88.92 111.52 113.92Air Craft285.18 - - - 285.18 44.17 15.97 - 60.14 225.04 241.01(Owned)Officeequipment29.64 7.48 0.57 - 36.55 4.52 1.71 0.14 6.09 30.46 25.12Total 12,737.92 2,150.03 67.81 326.31 15,146.44 2,757.04 875.20 18.09 3,614.14 11,532.30 9,980.88Previous Year 8,773.33 3,864.24 152.74 253.10 12,737.92 2,088.46 687.12 18.54 2,757.04 9,980.88 6,684.87(` in Crore)Gross Carrying Value Depreciation Net Carrying ValueBalance as at31st March,2011Balance as at31st March,2012Balance as at31st March,2012OtherAdjustmentsDepreciationfor theperiodBalance as at1st April,2011Balance as at31st March,2012OtherAdjustmentsAdditions Disposals/AdjustmentsParticulars Balance as at1st April,201110.64 2.41 - - 13.05 4.08 2.16 - 6.24 6.81 6.56Intangible AssetsComputersoftware-Boughtout38.79 5.13 - - 43.92 25.81 9.05 - 34.86 9.06 12.98Services andoperating rights- 0.84 - - 0.84 - 0.01 - 0.01 0.84 -Designs anddrawingsTotal 49.43 8.38 - - 57.81 29.89 11.22 - 41.11 16.71 19.54Previous Year 40.88 8.55 - - 49.43 21.69 8.20 - 29.89 19.54 19.19Net Block 12,787.35 2,158.41 67.81 326.31 15,204.25 2,786.93 886.42 18.09 3,655.25 11,549.01 10,000.42Previous Year 8,814.21 3,872.79 152.74 253.10 12,787.35 2,110.15 695.32 18.54 2,786.93 10,000.42 6,704.06Capital work in progress (including pre-operative expenses pending allocation/ capitalisation and capital goods lying in stores) 10,479.86 7,077.87Notes:a) Statement Showing the details of Pre-operative Expenditure as at 31st March, 2012DescriptionTotal(` in Crore)2011-12 2010-11Amount brought forward from last year 383.42 440.21Add: Expenses during the YearPersonnel Expenses 100.09 62.05Consultancy Charges 68.27 85.29Financial Expenses 11.47 69.20Foreign Exchange Fluctuations 27.26 7.62Depreciation 19.24 7.55Miscellaneous Expenses 143.84 111.67Less: Capitalised as part of753.59 783.59Plant & machinery 144.92 354.19Building 10.37 45.18Other fixed assets 1.15 0.80Amount carried forward in CWIP 597.15 383.42Depreciation during the year includes ` 19.24 crore (Previous year ` 7.55 crore) transferred to pre-operative expenses.b) Freehold land includes ` 5.85 crore jointly owned with a Company with 50% share and pending registration.c) Capital Work in Progress includes ` 597.14 crore (Previous year ` 383.42 crore) being Pre-operative expenditure and ` 1,079.40crore (Previous year ` 1,083.39 crore) Capital stores.d) Addition to Fixed Assets includes ` 4.84 crore (Previous year ` 3.29 crore) and addition to Capital Work in Progress includes` 0.48 crore (Previous year ` 3.16 crore) being expenditure incurred on Research & Development Activities. The Capital Work inProgress accumulated balance as on 31st March, 2012 the is ` 0.84 crore (Previous year ` 3.16 crore)e) Additions / (Adjustments) to Plant and Machinery/Capital work-in-progress includes addition of ` 332.22 crore (Previous yearaddition of ` 165.92 crore) on account of foreign exchange fluctuation on long-term liabilities relating to acquisition of FixedAssets pursuant to the notifications issued by the Ministry of Corporate Affairs relating to Accounting Standard ( AS-11) ‘TheEffects of Changes in Foreign Exchange Rates’.f) Borrowing cost incurred during the year and capitalised is ` 50.48 crore (Previous year ` 71.02 crore). Borrowing cost incurredduring the year and transferred to Capital Work in Progress is ` 372.33 crore (Previous year ` 202.69 crore).g) Expenditure during Trial Run period has been capitalised/decapitaised with Fixed Assets as under