File_2012_Document1

142 Jindal Steel & Power Limited Business Leadership Sustainable Operations Excellent Governance Robust FinancialsStandaloneAnnual Report 2011-12143NOTES 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, 201227 FINANCE COSTa) Interest ExpenseFor the year ended31st March, 2012(` in Crore)For the year ended31st March, 2011Debentures and other term-loans 370.73 258.20Others 314.16 155.01b) Less: Interest Income684.89 413.21Interest on Inter-corporate deposits (132.42) (115.72)Others (15.70) (12.49)(148.12) (128.21)Total Finance Cost 536.77 285.0028 OTHER EXPENSESFor the year ended31st March, 2012(` in Crore)For the year ended31st March, 2011a) Consumption of stores and spares 1,457.17 1,135.45b) Consumption of power and fuel 838.37 568.47c) Other manufacturing expenses 259.66 214.67d) Repair and MaintenancePlant and machinery 140.99 94.63Building 35.67 24.36Others 112.99 96.93e) Royalty 172.96 119.70f) Rent* 12.27 7.88g) Rates and Taxes 16.65 16.24h) Insurance 14.46 11.16i) Payment to Statutory AuditorsAudit fees 0.50 0.30Taxation matters 0.10 0.03Company law matters 0.03 -Other services 0.14 0.12Reimbursement of expenses 0.07 0.07j) Miscellaneous expenses 419.05 320.51k) Loss arising from business investment** 167.20 -l) Research and Development expenses*** 6.46 5.80m) Loss on sale/discard of fixed assets 5.33 2.40n) Donation 87.98 73.9628 OTHER EXPENSES (c0ntd.)o) Directors sitting fees 0.08 0.06p) Selling expenses 349.91 358.58q) Bad debts/provision for doubtful debts 0.10 (0.61)r) Financial expenses 139.07 62.73s) Foreign exchange fluctuation (net) 45.46 26.70[net of income of ` 97.19 crore (Previous year ` 43.80 crore)]Total Other Expenses 4,282.68 3,140.14* The Company has paid lease rentals of ` 12.27 crore (Previous year ` 7.88 crore) under cancellable operating leases. There are nonon-cancellable operating leases.** An exceptional item(Refer Note no.34 to financial statements)*** Expenditure on Research & Development Activities, incurred during the year, is ` 8.97 crore (including capital expenditure of` 2.51 crore) (Previous year ` 12.25 crore, including capital expenditure of ` 6.45 crore)29 CONTINGENT LIABILITIES AND COMMITMENTSI. Contingent Liabilities not provided for in respect of:II.DescriptionCurrent Year(` in Crore)Previous Yeara) Guarantees issued by the Company’s Bankers on behalf of the Company 376.02 351.11b) Letter of credit opened by banks 628.90 1,453.12c) Corporate guarantees/undertakings issued on behalf of third parties. 3,333.79 3,359.50d) Disputed Excise Duty and Other demands 780.96 684.77e) Bonds executed for machinery imports under EPCG Scheme 2773.22 3,039.99f) Income Tax demands where the cases are pending at various stages of appealwith the authorities187.76 187.21g) Claims against the Company, not acknowledge as debt - -CommitmentsEstimated amount of contracts remaining to be executed on capital account andnot provided for (net of advances)For the year ended31st March, 2012(` in Crore)For the year ended31st March, 20113,104.16 3,763.4830 In the opinion of the Board, Current Assets, Loans and Advances have a value on realisation in the ordinary course of businessat least equal to the amount at which they are stated and provision for all known liabilities has been made and consideredadequate.