File_2012_Document1

70 Jindal Steel & Power Limited Business Leadership Sustainable Operations Excellent Governance Robust FinancialsDirectors’ ReportAnnual Report 2011-1271The COMPANy has,on a consolidatedBASIS, achieved anAGGREGATE incomeof ` 18,350.53 croreCOMPARED to previousyear’s ` 13,193.60CRORE. Profit beforeTAX has increased to` 5,188.60 crore in2011-12 from` 4,988.02 crore in2010-11.Directors’ReportToThe Members,Your Directors are pleased to present the 33rd Annual Report together with the Statementof Accounts for the year ended on 31st March, 2012.AUDITED FINANCIAL RESULTSParticulars Standalone ConsolidatedFinancialYear ended31.03.2012FinancialYear ended31.03.2011FinancialYear ended31.03.2012(` in Crore)FinancialYear ended31.03.2011Sales & other income 13,518.43 9,717.34 18,350.53 13,193.60Profit before interest and depreciation 4,246.95 3,725.72 6,935.11 6,398.17Profit before tax 2,843.01 2,753.36 5,188.60 4,988.02Profit after tax 2,110.65 2,064.12 4,002.26 3,804.01Appropriations:Interim dividend - - 4.82 4.29Final dividend 149.46 140.19 149.46 140.19Corporate tax on dividend 3.15 3.75 25.03 23.44General reserve 220.00 210.00 222.54 211.65FURTHER ISSUE OF CAPITALDuring the period under report the Company has allotted3,24,223 equity shares of ` 1/- each on 12th December, 2011against options granted under the Company’s Employee StockOption Scheme- 2005.DIVIDENDYour Directors recommend a dividend of ` 1.60 per equity shareof ` 1/- each i.e. 160% for the financial year 2011-12. The totaldividend pay-out for the year will amount to ` 149.46 crore(excluding dividend tax).OPERATIONAL REVIEWThe Company has, on a consolidated basis, achieved anaggregate income of ` 18,350.53 crore compared to previousyear’s ` 13,193.60 crore. Profit before tax has increased to` 5,188.60 crore in 2011-12 from ` 4,988.02 crore in 2010-11.Profit after tax has also grown to ` 4,002.26 crore in the yearunder report from ` 3,804.01 crore in the previous year. TheReserves and Surplus have touched ` 18,017.63 crore.Sponge IronThe Company produced 13,19,940 MT of Sponge Iron duringthe year under report as against previous year’s production of13,19,840 MT and achieved a capacity utilisation of 96.35%.SteelThe production of steel products during the year under report,compared to previous year is given below:Sl. No. Product Production in MT(2011-12) (2010-11)1. Finished steel products 19,44,434 15,85,3272. Semi steel products 27,56,881 22,72,692PelletThe Company produced 37,36,915 MT of pellets during the yearunder report as against 27,87,285 MT in the previous year.PowerThe Company generated 4,634 million Kwh of power during theyear under report as against last year’s 3,420 million Kwh ofpower.Raipur UnitRaipur Unit produced 1,778 metric tons of castings and has donemachining of 9,060 metric tons during the year under report asagainst 1,569 metric tons and 8,613 metric tons respectively inthe previous year.MiningThe production of calibrated iron ore at captive mine at Tensa inOdisha was 5.06 lacs MT as against previous year’s productionof 6.69 lacs MT. The Company has exported 2.45 lacs MT ofiron ore fines as against 8.42 lacs MT in the previous year. Coalproduction at captive mine was 59.98 lacs MT as against previousyear’s production of 59.99 lacs MT.PROJECTS COMPLETEDFollowing projects were completed during the year under report:1. Power Plants(i) 540 MW (4X135 MW) power plant at Dongamahua,Raigarh Chhattisgarh: Under Phase–II, Unit I and IIof 135 MW each power generation capacity werecommissioned in January, 2012. Both the Units havestabilised their operations. With this, all the four Unitsof 135 MW each power generation capacity set up atDongamahua, Raigarh, Chhattisgarh are operationaland generating power.(ii)810 MW (6x135 MW) power plant at Angul, Odisha:The Company is setting up 810 MW (6x135 MW)captive power plant at Angul, Odisha for meetingpower requirement of its upcoming 6 MTPA integratedsteel plant. Second Unit of 135 MW power generationcapacity was commissioned in February, 2012. Withthis, two units of 135 MW each are operational andgenerating power. Third Unit of 135 MW powergeneration capacity is expected to be commissionedin July, 2012.2. Machinery Division, Raipur, ChhattisgarhThe production capacity of Machinery Division of RaipurUnit has been enhanced from 5,100 metric tons per annumto 10,000 metric tons per annum by making investmentin machine tools, expansion of covered area and materialhandling equipment. The Company has received IBRCertification as manufacturer of headers of Boilers andfoundry items. This Division is envisaging further expansionof its capacity by inclusion of more covered area andmaterial handling facility and has planned to install Alfa SetSand System in foundry for further improvement in productquality. The Pressure Vessel Division with a capacity of 2,500metric tons per annum has started commercial operations.