File_2012_Document1

144 Jindal Steel & Power Limited Business Leadership Sustainable Operations Excellent Governance Robust FinancialsStandaloneAnnual Report 2011-12145NOTES 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, 201231 a) Provision for current income tax has been made considering various benefits and allowances available to the Companyunder the provisions of the Income Tax Act, 1961.b) Movement of deferred tax provision/adjustment in accordance with Accounting Standard (AS–22) ‘Accounting for Taxeson Income’ is as under:(` in Crore)As on1st April,2010Charge/(Credit) during2010-11As on1st April,2011Charge/(Credit) duringthe yearAs on31st March,2012A. Deferred Tax Assetsa) Disallowance u/s 43-B of the (87.01) (13.81) (100.82) (12.87) (113.69)Income Tax Act, 1961b) Provision for Doubtful Debts (1.52) 0.01 (1.51) (0.78) (2.29)Deferred Tax Assets (88.53) (13.80) (102.33) (13.65) (115.98)B. Deferred Tax Liabilitiesa) Difference between book802.50 177.13 979.63 204.16 1,183.79and tax depreciationb) Miscellaneous Expenditure1.03 - 1.03 (1.03) -written offDeferred Tax Liabilities 803.53 177.13 980.66 203.13 1,183.79C. Total Deferred Tax Liabilities (Net) 715.00 163.33 878.33 189.48 1,067.81(` in Crore, except per share data)Current Year Previous Year32 ‘Earnings per share’, in accordance with Accounting Standard (AS–20):Profit for the year after taxation 2,110.65 2,064.12Profit attributable to ordinary shareholders 2,110.65 2,064.12Number of Equity Shares (in nos.)a) Issued and subscribed 934,599,380 933,428,727b) Number of potential equity shares (under Employees’ stock option scheme) - 901,250Total number of shares including potential equity shares 934,599,380 934,329,977Basic earnings per Share (`) 22.58 22.11Diluted earnings per Share (`) 22.58 22.0933 ‘Employee Benefits’, in ACCORDANCE withACCOUNTING STANDARD (AS-15) :Current YearPrevious Year(` in Crore)Gratuity Leave Encashment Gratuity Leave EncashmentFunded Non-Funded Funded Non-FundedA. Gratuity & Leave EncashmentI Components of Employer Expense1 Current Service Cost 4.45 8.37 3.57 7.452 Interest Cost 2.20 2.93 1.80 2.593 Expected Return on Plan Assets (1.63) - (1.13) -4 Curtailment Cost/ (Credit) - - - -5 Settlement Cost/ (Credit) - - - -6 Past Service Cost (1.54) 2.14 0.66 -7 Actuarial Losses/ (Gains) 0.58 4.81 1.72 (0.33)8 Total expense recognised in the Profit4.06 18.25 6.62 9.71and Loss AccountII Actual Returns for the year ended 31st1.66 - 1.26 -March, 2012III Net Assets/ (Liability) recognised in theBalance Sheet1 Present value of Defined Benefit(30.45) (50.21) (26.30) (36.98)Obligation2 Fair Value of Plan Assets 21.44 - 16.48 -3 Status {Surplus/(Deficit)} (1-2) (9.01) (50.21) (9.82) (36.98)4 Unrecognised Past Service Cost 0.67 - 1.33 -Net Assets/ (Liability) recognised in the (8.34) (50.21) (8.49) (36.98)Balance Sheet (3+4)IV Change in Defined Benefit Obligation (DBO)Present Value of DBO at the beginning of (26.30) (36.98) (21.13) (31.92)the year1 Current Service Cost (4.45) (8.37) (3.57) (7.45)2 Interest Cost (2.20) (2.93) (1.80) (2.59)3 Curtailment Cost/(Credit) - - - -4 Settlement Cost/ (Credit) - - - -5 Plan Amendments 2.21 (2.14) - -6 Acquisitions (0.02) - 1.29 1.817 Actuarial (Losses)/Gains (0.62) (4.81) (1.84) 0.338 Benefits Paid 0.93 5.03 0.75 2.84Present Value of DBO at the end of theyear(30.45) (50.21) (26.30) (36.98)