File_2012_Document1

198 Jindal Steel & Power LimitedBusiness Leadership Sustainable Operations Excellent Governance Robust FinancialsAnnual Report 2011-12199ConsolidatedNOTES 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, 201228 OTHER EXPENSESFor the year ended31st March, 2012(` in Crore)For the year ended31st March, 2011a) Consumption of stores and spares 1,491.25 1,147.91b) Consumption of power and fuel 1,129.77 805.18c) Other manufacturing expenses 497.21 266.59d) Repair and Maintenance-Plant and machinery 172.43 125.07-Building 44.10 27.78-Others 149.19 113.90e) Royalty 180.89 119.70f) Rent* 17.63 12.73g) Rates and Taxes 24.09 21.47h) Insurance 22.80 15.91i) Payment to Statutory Auditors-Audit fees 1.26 0.88-Taxation matters 0.10 0.03-Company law matters 0.03 --Other services 0.14 0.12-Reimbursement of expenses 0.07 0.07j) Miscellaneous expenses 692.96 602.21k) Loss arising from business investments** 93.62 -l) Research & Development expenses*** 6.46 5.80m) Loss on sale/discard of fixed assets 5.34 2.49n) Donation 109.37 73.96o) Directors sitting fees 0.08 0.08p) Selling expenses 671.87 474.60q) Prior Period Adjustment - 2.85r) Bad debts/provision for doubtful debts 0.10 (0.63)s) Miscellaneous Expenditure written off 1.56 14.97t) Financial expenses 163.31 64.27u) Foreign exchange fluctuation (net) 37.41 11.70[net of income of ` 105.04 crore (Previous year ` 65.22 crore)]Total Other Expenses 5,513.04 3,909.64*The Company has paid lease rentals of ` 17.63 crore (Previous year ` 12.73 crore) under cancellable operating leases. There are nonon-cancellable operating leases.** An exceptional item (Note No.36 to Consolidated 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)Current Year(` in Crore)Previous Year29 CONTINGENT LIABILITIES AND COMMITMENTSI. Contingent Liabilities not provided for in respect of:a) Guarantees issued by the Company’s Bankers on behalf of the Company 419.80 357.14b) Letter of credit opened by banks 635.52 1,707.35c) Corporate guarantees/undertakings issued on behalf of third parties. 322.53 212.68d) Disputed Excise Duty and Other demands 869.23 769.28e) Future liability on account of lease rent for unexpired period 39.30 -f) Bonds executed for machinery imports under EPCG Scheme 2773.22 3,039.99g) Income Tax demands where the cases are pending at various stages of appeal187.76 187.21with the authoritiesh) Claims against the Company, not acknowledge as debt 17.03 8.92II. CommitmentsEstimated amount of contracts remaining to be executed on capital account and notprovided for (net of advances11,981.02 10,512.6230 Jindal Power Limited, a subsidiary company, is in process of implementation of 2400 MW (4 X 600MW) Thermal Power Plant atTamnar, Raigarh in the state of Chhattisgarh. Further the Company has initiated work of 1320 MW (2 X 660MW) Thermal PowerProject located at Dumka and also another Power Project of 1320 MW (2 X 660MW) located at Godda in the state of Jharkhand.31 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.32 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) (13.40) (114.22)Income Tax Act, 1961b) Provision for Doubtful Debts (1.52) 0.01 (1.51) (0.79) (2.30)Deferred Tax Assets (88.53) (13.80) (102.33) (14.19) (116.52)B. Deferred Tax Liabilitiesa) Difference between book and932.97 173.81 1,106.78 201.69 1,308.47tax depreciationb) Miscellaneous Expenditure1.03 - 1.03 (1.03) -written offDeferred Tax Liabilities 934.00 173.81 1,107.81 200.66 1,308.47C. Total Deferred Tax Liabilities (Net) 845.47 160.01 1,005.48 186.47 1,191.95