File_2012_Document1

172 Jindal Steel & Power LimitedBusiness Leadership Sustainable Operations Excellent Governance Robust FinancialsAnnual Report 2011-12173ConsolidatedNOTES to the consolidated financial statements as at and for the year ended 31st March, 2012 NOTES to the consolidated financial statements as at and for the year ended 31st March, 2012Name of Subsidiary Country of Incorporation Proportion of Ownership (%) as on31.03.2012 31.03.2011Jindal Power Distribution Limited India 98.80 98.80Jindal Power Limited India 96.43 96.43Jindal Power LLC Mongolia 100.00 100.00Jindal Power Trading Company Limited India 79.34 79.34Jindal Power Transmission Limited India 98.80 98.80Jindal Steel & Power (Australia) Pty Limited Australia 100.00 100.00Jindal Steel & Power (Mauritius) Limited Mauritius 100.00 100.00Jindal Steel & Power Zimbabwe Limited Zimbabwe 100.00 100.00Jindal Steel Bolivia S.A. Bolivia 99.99 99.99Jin Africa Limited Zambia 90.00 -Jindal Zambia Limited Zambia 98.00 -Jindal Tanzania Limited Tanzania 100.00 -JSPL Mozambique Minerais LDA Mozambique 97.50 97.50Jubilant Overseas Limited Mauritius 100.00 100.00Kasai SUD Diamant SPRL Congo - 70.00Osho Madagascar SARL Madagascar 99.33 99.33PT Jindal Overseas Indonesia 99.00 99.00Rolling Hills Resources LLC Mongolia 100.00 100.00Shadeed Iron & Steel Co. LLC Oman 99.99 99.99Skyhigh Overseas Limited Mauritius 100.00 100.00Subansiri Hydro Electric Power Co. Limited India 74.00 74.00Trans Atlantic Trading Limited Guernsey 100.00 100.00Vision Overseas Limited Mauritius 100.00 100.00Worth Overseas Limited Mauritius 100.00 100.002. The associate companies considered in consolidated financial statements are:Name of Associate Country of Incorporation Proportion of Ownership (%) as on31.03.2012 31.03.2011Angul Sukinda Railway Limited India 25.00 25.00Nalwa Steel & Power Limited India 40.00 40.00Saras Mineracao de Ferro S.A Brazil 49.00 49.00FB Infra Private Limited India 49.00 -3. The joint venture companies considered in consolidated financial statements are:iv)Name of Joint Venture Country of Incorporation Proportion of Ownership (%) as on31.03.2012 31.03.2011Jindal Synfuels Limited India 70.00 70.00Shresht Mining and Metals Private Limited India 50.00 50.00Urtan North Mining Company Limited India 66.67 -@ Control exists indirectly through subsidiaryOther accounting policiesThese are set out under “Significant Accounting Policies” asgiven in the standalone financial statements of Jindal Steel& Power Limited.v) Fixed Assets and Depreciationa) Fixed AssetsFixed Assets are stated at cost less accumulateddepreciation and impairment losses, if any. Costsinclude cost of acquisitions or constructions, includingincidental expenses thereto and other attributablecosts of bringing the asset to its working conditionfor its intended use and are net of available duty/taxcredits.b) Expenditure during construction periodExpenditure related to and incurred duringimplementation of new/expansion-cum-modernisationprojects is included under capital work-in-process andthe same is allocated to the respective Fixed Assets oncompletion of its construction/erection.c) Intangible AssetsIntangible Assets are recognised on the basis ofrecognition criteria as set out in Accounting Standard(AS-26) ‘Intangible Assets’.d) Depreciation and AmortisationDepreciation on fixed assets is provided on straightlinemethod (SLM) at the rates and in the mannerspecified in Schedule XIV to the Companies Act,1956. Leasehold Land and Aircraft are amortisedover the period of lease. In the case of assets whereimpairment loss is recognised, the revised carryingamount is depreciated over the remaining estimateduseful life of the asset.Certain Plant and Machinery have been consideredas continuous process plant on the basis of technicalassessment and depreciation on the same is providedfor accordingly.In case of Jindal Power Limited, a subsidiary, fixedassets are depreciated on written down value methodvi)vii)(WDV) at the rates and in the manner specified inSchedule XIV to the Companies Act, 1956.In case of foreign subsidiaries, fixed assets aredepreciated on straight-line method (SLM) based uponestimated useful life of the assets. The depreciationrates so computed do not substantially and materiallydiffer from the rates adopted by the parent company.Intangible Assets are amortised on straight-linemethod (SLM) over the expected duration of benefitsnot exceeding ten years.Impairment of AssetsThe carrying amount of assets is reviewed for impairmentat each balance sheet date wherever events or changes incircumstances indicate that the carrying amount may notbe recoverable. An impairment loss is recognised for theamount for which the asset’s carrying amount exceedsits recoverable amount being the higher of the assets netselling price and its value in use. Value in use is based on thepresent value of the estimated future cash flows relatingto the asset. For the purpose of assessing impairment,assets are grouped at the lowest levels for which thereare separately identifiable cash flows (i.e. cash generatingunits).Previously recognised impairment losses are reversedwhere the recoverable amount increases because offavourable changes in the estimates used to determinethe recoverable amount since the last impairment wasrecognised. A reversal of an asset’s impairment lossis limited to its carrying amount that would have beendetermined (net of depreciation or amortisation) had noimpairment loss been recognised in prior years.Accounting for Leasesa) Finance lease, is recognised as an asset and a liabilityto the lessor at fair value at the inception of the lease.b) The lease payments under operating lease as perrespective lease agreements are recognised asexpense in the statement of profit and loss on astraight line basis over the lease term.