You are here » Home » Companies » Company Overview » Jindal Stainless Ltd

Jindal Stainless Ltd.

BSE: 532508 Sector: Metals & Mining
NSE: JSL ISIN Code: INE220G01021
BSE LIVE 15:40 | 17 Nov 109.20 0.95
(0.88%)
OPEN

109.35

HIGH

110.70

LOW

108.65

NSE 15:59 | 17 Nov 109.45 1.50
(1.39%)
OPEN

109.00

HIGH

110.60

LOW

108.90

OPEN 109.35
PREVIOUS CLOSE 108.25
VOLUME 28523
52-Week high 126.00
52-Week low 31.10
P/E 19.89
Mkt Cap.(Rs cr) 5,024
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 109.35
CLOSE 108.25
VOLUME 28523
52-Week high 126.00
52-Week low 31.10
P/E 19.89
Mkt Cap.(Rs cr) 5,024
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Jindal Stainless Ltd. (JSL) - Director Report

Company director report

TO

THE MEMBERS

Your Directors have pleasure in presenting the 37th Annual Report on the business andoperations of your Company together with the Audited Statement of Accounts for thefinancial year ended 31st March 2017.

FINANCIAL RESULTS

Your Company's performance for the financial year ended 31st March 2017 is summarizedbelow:

(Rs. in Crores)

Particulars

Standalone

Consolidated

Year ended 31.03.2017 Year ended 31.03.2016 Year ended 31.03.2017 Year ended 31.03.2016
Revenue from operations 8957.40 7028.24 9924.78 7643.86
Other Income 25.55 25.89 25.69 26.15
Total Income 8982.95 7054.13 9950.47 7670.01
Expenses:
Cost of materials consumed 4953.76 3888.43 5792.62 4324.10
Purchase of trading goods 146.72 357.40 146.72 357.40
Changes in Inventories of finished goods stock in trade and work in progress and trading goods (123.93) (124.36) (205.50) (153.92)
Employee benefits expense 102.46 91.02 154.05 134.34
Excise Duty 646.12 500.25 646.12 500.25
Finance costs 761.69 1006.23 787.88 1029.97
Depreciation and amortisation expenses 307.98 298.46 325.21 316.16
Stores and Spares consumed 429.42 363.73 458.33 404.40
Power & Fuel 529.71 508.56 565.02 541.94
Other expenditure 1166.44 922.27 1201.83 962.62
Total Expenses 8920.37 7811.99 9872.28 8417.26
Profit/(Loss) before exceptional Items and tax 62.58 (757.86) 78.19 (747.25)
Share of Profit/(Loss) of an Associate - - 11.48 0.03
Share of Profit/(Loss) of Minority - - (1.47) (0.71)
Exceptional items - Gain /(Loss) 26.13 (34.35) 25.84 (40.37)
Profit /(Loss) after exceptional items but before tax 88.71 (792.21) 114.04 (788.30)
Tax expense 30.37 (233.09) 32.47 (231.51)
Profit/(Loss) for the year 58.34 (559.12) 81.57 (556.79)
Other Comprehensive Income:
(A) Items that will not be reclassified to profit/(loss)
(i) Re-measurement gains/(losses) on defined benefit plans (0.40) (0.89) (0.70) (0.89)
(ii) Income tax effect on above 0.14 0.31 0.21 0.31
(B) Items that will be reclassified to profit or loss
(i) Exchange differences in translating the financial statements of foreign operation - - (31.14) 7.47
(ii) Non-controlling interest in Associates (' 26000) - - 0.00 -
Total Comprehensive Income for the year (comprising Profit/(Loss) and other Comprehensive Income for the year) 58.08 (559.70) 49.94 (549.90)

FINANCIAL HIGHLIGHTS

Your Company has adopted Indian Accounting Standards (Ind AS) prescribed under Section133 of the Companies Act 2013 read with the Companies (Accounting Standard) Rules 2015as amended w.e.f. April 1 2016 and the above results have been prepared in compliancewith Ind AS. Ind AS has replaced the existing Indian GAAP prescribed under Section 133 ofthe Companies Act 2013 read with Rule 7 of Companies (Accounts) Rules 2014.

The financial results for the year ended March 31 2016 have been restated to complywith Ind AS to make them comparable.

A Composite Scheme of Arrangement (the 'Scheme') amongst the Company Jindal Stainless(Hisar) Limited Jindal United Steel Limited Jindal Coke Limited and their respectiveshareholders and creditors under the provision of Sec 391-394 of the Companies Act 1956and other applicable provisions of Companies Act 1956 and/ or Companies Act 2013 wassanctioned by the Hon'ble High Court of Punjab & Haryana Chandigarh (High Court)pursuant to its Order dated 21st September 2015 (as modified on 12th October 2015). Thecertified copy of the said order was filed with the office of the Registrar of Companieson 1st November 2015. Consequent thereupon Sections I and II of the Scheme becameoperative with effect from the Appointed Date 1 i.e. close of business hours beforemidnight of 31st March 2014. Further the Company received approval from the OrissaIndustrial and Infrastructure Development Corporation Limited (OIIDCO) on 24th September2016 with respect to transfer/right to use the land on which Hot Strip Mill (HSM) and CokeOven Plant is located from the Company to Jindal United Steel Limited and Jindal CokeLimited respectively and consequent thereupon Sections III and IV of the Scheme becameoperative with effect from the Appointed Date 2 i.e. close of business hours beforemidnight of 31st March 2015. The impact of the implementation of the Scheme has beenreflected in the financial results for the years ended on 31st March 2016 and on 31stMarch 2017.

During the year the Revenue from operations of your Company on standalone basis hasincreased by 27.45% at Rs.8957.40 Crore as compared to Rs.7028.24 Crore during previousfinancial year 2015-16. The Profit before other income Finance Cost DepreciationExceptional Items Tax & Amortisation (EBIDTA) on standalone basis stood atRs.1106.70 Crore as compared to Rs.520.94 Crore during previous year. The Net profit onstandalone basis stood at Rs.58.34 Crore as compared to a net loss of Rs.559.12 Croreduring previous year.

Further during the year the consolidated Revenue from operations of your Company hasincreased by 29.84% at Rs.9924.78 Crore as compared to Rs.7643.86 Crore during previousfinancial year 2015-16. Consolidated Profit before other income Finance CostDepreciation Exceptional Items Tax & Amortization (EBIDTA) stood at Rs.1165.59Crore as compared to Rs.572.73 Crore during previous year. The Net profit on consolidatedbasis stood at Rs.81.57 Crore as compared to a net loss of Rs.556.79 Crore during previousyear.

During the year under review the operations of your Company improved significantly andthe EBIDTA of the Company on standalone basis increased by 102% over the last financialyear. However the high interest burden continued to put pressure on the profitability ofthe Company.

OUTLOOK

The world economy is gaining momentum after a dull outturn in 2016. Economic growth isexpected to increase to 3.5% in 2017 from 3.1% in 2016 as per International Monetary Fund(IMF). Improved economic activity is likely to push the growth further. Economicperformance across most regions is recovering but US policy uncertainty poses a concern.

Growth in emerging markets including India remains subdued. IMF projects slowdown inIndian economy on account of demonetisation with GDP growth rate estimates revised to 7.2% for 2017-18. Further outlook for the Asian region remains sluggish with an exception ofChina.

As per International Stainless Steel Forum global stainless steel production increasedto 45.8 MT in 2016 China being the highest contributor. According to estimate by Steeland Metals Market Research (SMR) global stainless steel demand will increase by 4% in2017. In India domestic demand will grow by over 9% in next five years as per IndianStainless Steel Development Association (ISSDA). Major demand is expected from theArchitecture Building and Construction (ABC) segment while Automobile Railway andTransport (ART) will also provide stimulus. Prospects of normal monsoon project a GDPgrowth of above 7% in 2017-18.

OPERATIONS

Your Company has been able to improve its performance significantly during the year2016-17 despite the adverse global position of Stainless Steel industry. Steel MeltingShop produced 722995 MT as compared to 603852 MT in the last year having rolled bothstainless steel material (704680 MT) and mild steel material (341798 MT) PlateFinishing Shop produced 46966 MT against 33082 MT in last year HAPL in CRM produced592113 MT against 534138 MT in last year and CAPL in CRM produced 344725 MT against311923 MT produced in last year.

The production at Ferro Alloys during the year was 205510 MT against 154309 MTduring last year.

The captive Power Plants (2X125MW) generated 1784.92 million units (net) of power ascompared to 1620.26 million units (net) in the last year. Your Company is certified forvarious product and system certifications including integrated management systemcomprising of ISO 9001:2008 Quality Management System (ISO 9001:2008) EnvironmentManagement System (ISO 14001:2004) and Health and Safety Management System as per BS OHSAS18001:2007. And further up-gradation of ISO 9001 & 14001 for 2015 version is underprocess.

Your Company is now in receipt of REACH/RoHS certification for 200 300 & 400series stainless steel grades. This includes compliance to the 7 new additions ofsubstances of very high concern (SVHC) in the REACH regulation 1907/2006. Scope ofConstruction Product Directive (CE Marking) certification is expanded to include grades -EN 1.4003 1.4016 1.4512 and 1.4372. This has enabled your Company to be the preferredand certified manufacturers of stainless for construction field in European market with 10grades covered under CE marking scope. Validity of AD/ PED certification has been extendedto Feb 2019 along with the grade additions of EN 1.4003. Your Company's Jajpur unit hasalso successfully completed DNV audit against DNV guidelines for Manufacturer ProductQuality Assessment (Level 4) and Marine approvals.

Asset Monetization and Business Reorganization Plan (AMP) and Composite Scheme ofArrangement

The Company after having various rounds of discussions with the CDR Lenders hadfinalized a comprehensive plan of Asset Monetization cum Business Reorganisation Plan("AMP") which entailed monetization of identified business undertaking(s) ofthe Company through demerger/slump sale(s) and utilization of the proceeds of the slumpsale(s) in reduction of debt of the Company.

As a part of the above said AMP a Composite Scheme of Arrangement among the Companyand its three wholly owned subsidiary companies viz. Jindal Stainless (Hisar) Limited("JSHL") Jindal United Steel Limited ("JUSL") and Jindal Coke Limited("JCL") and their respective creditors and shareholders was undertaken which wasapproved by the Hon'ble High Court of Punjab and Haryana at Chandigarh vide its orderdated 21st September 2015 (as modified on 12th October 2015) Certified true copy of thesaid Order was filed on 1st November 2015 with the office of Registrar of Companies NCTof Delhi and Haryana. Consequently Section I (pertaining to demerger of Mining Divisionand Ferro Alloys Division and vesting the same in JSHL) and Section II (pertaining toslump sale of manufacturing facility at Hisar from the Company to JSHL) of the Schemebecame operative from the Appointed Date 1 i.e. close of business hours before midnight of31st March 2014. The Scheme envisaged demerger of Mining Division including the ChromiteMines located at Sukinda and vesting the same in JSHL however the Company did notreceive approval from the Ministry of Mines Government of Odisha for transfer of the saidMines to JSHL therefore the Board of Directors of the Company in its meeting held on23rd November 2016 in terms of clause 1.10 of Section V of the Scheme decided not totransfer the Mines to JSHL.

Section III and IV of the Scheme with respect to JUSL and JCL respectively becameoperative from Appointed Date 2 i.e. close of business hours before midnight of 31stMarch 2015 and became effective upon receipt of approval from Orissa Industrial andInfrastructure Development Corporation Limited (OIIDCO) on 24th September 2016 withrespect to the transfer/right to use the land on which Hot Strip Mill and Coke Oven Plantis located from the Company to JUSL and JCL respectively.

Post implementation of the Scheme the Company has already received an amount ofRs.2600 Crore as consideration for slump sale from JSHL which has been utilized to prepaythe debts of the Company and accordingly the debt of the Company as on date has beenreduced to that extent. The Company has further received an amount of Rs.2355 Crore fromJUSL and Rs.490 Crore from JCL towards consideration of slump sale and interest freesecurity deposit for sharing infrastructure facilities in due course and that amount shallalso be utilized to prepay the debts of the Company.

On 26th May 2017 the Company has allotted (I) 60570320 equity shares of face valueof Rs.2 each ("Equity Shares") and (ii) 142830637 - 0.01% OptionallyConvertible Redeemable Preference Shares of face value of Rs.2 each ("OCRPS) to thelenders of the Company upon conversion of the Funded Interest Term Loan I and the FundedInterest Term Loan II at a price of Rs.39.10 (including premium of Rs.37.10) perShare/OCRPS aggregating to Rs.2368299512; and Rs.5584677906.70 respectively.

In view of above the AMP scheme implementation is substantially complete.

DIVIDEND & TRANSFER TO RESERVES

The Board considering your Company's performance and financial position for the yearunder review has not recommended any dividend on equity shares of your Company for thefinancial year ended 31st March 2017. Accordingly no amount is proposed to betransferred to the reserves of your Company.

SHARE CAPITAL

As on 31st March 2016 the paid up share capital of your Company was Rs.462370890(Rupees Forty Six Crore Twenty Three Lacs Seventy Thousand Eight Hundred Ninety) dividedinto 231185445 (Twenty Three Crore Eleven Lacs Eighty Five Thousand Four Hundred FortyFive) equity shares of Rs.2 each.

Your Company has on 3rd July 2016 allotted 168284309 (Sixteen Crore Eighty TwoLakhs Eighty Four Thousand Three Hundred Nine) equity shares of Rs.2 each at a price ofRs.21.76 (including premium of Rs.19.76 per share) per share to Jindal Stainless (Hisar)Limited ("JSHL") on preferential basis against Rs.3661866570 (Rupees ThreeHundred Sixty Six Crore Eighteen Lakhs Sixty Six Thousand Five Hundred Seventy only)being the amount due and payable by your Company to JSHL as of the 'Appointed Date 1' i.e.close of business hours before midnight of March 31 2014 as specified in the Scheme.These shares have already been listed and permitted for trading on the BSE Ltd. andNational Stock Exchange of India Ltd.

Further your Company has on 26th May 2017 allotted: (a) 60570320 (Six Crore FiveLacs Seventy Thousand Three Hundred Twenty) equity shares to the lenders of your Companyupon conversion of the Funded Interest Term Loan I and the Funded Interest Term Loan II ata price of Rs.39.10 (including premium of Rs.37.10) per share aggregating toRs.2368299512 (Rupees Two Hundred Thirty Six Crore Eighty Two Lacs Ninety Nine ThousandFive Hundred Twelve); and (b) 142830637 (Fourteen Crore Twenty Eight Lacs ThirtyThousand Six Hundred Thirty Seven) 0.01% Optionally Convertible Redeemable PreferenceShares of your Company having face value of Rs.2 each ("OCRPS") to the lendersof your Company upon conversion of the Funded Interest Term Loan I and the Funded InterestTerm Loan II at a price of Rs.39.10 (including premium of Rs.37.10) per OCRPS aggregatingto Rs.5584677906.70 (Rupees Five Hundred Fifty Eight Crore Forty Six Lacs Seventy SevenThousand Nine Hundred Six and Seventy paise).

Consequent upon the said allotments paid up share capital of your Company hasincreased from Rs.462370890 (Rupees Forty Six Crore Twenty Three Lacs Seventy ThousandEight Hundred Ninety) to Rs.1205741422 (Rupees One Hundred Twenty Crore Fifty SevenLacs Forty One Thousand Four Hundred Twenty Two) divided into 460040074 (Forty SixCrore Forty Thousand Seventy Four) equity shares of Rs.2 each and 142830637 (FourteenCrore Twenty Eight Lacs Thirty Thousand Six Hundred Thirty Seven) OCRPS of Rs.2 each.

MANAGEMENT DISCUSSION AND ANALYSIS REPORT

Management Discussion and Analysis Report as required under the Securities and ExchangeBoard of India (Listing Obligations and Disclosure Requirements) Regulations 2015("SEBI LODR") forms part of this Annual Report.

BUSINESS RESPONSIBILITY REPORT

Your Company is committed to grow the business responsibly with a long term perspectiveas well as to the nine principles enshrined in the National Voluntary Guidelines (NVGs) onsocial environmental and economic responsibilities of business as notified by theMinistry of Corporate Affairs Government of India in July 2011.

The Business Responsibility Report ("BRR") of the Company as per therequirements of Regulation 34(f) of the SEBI (Listing Obligations and DisclosureRequirements) Regulations 2015 describing the initiatives taken by the Company from anenvironmental social and governance perspective alongwith all the related policies canbe viewed on the Company's website at www.jslstainless.com .

TRANSFER TO INVESTOR EDUCATION AND PROTECTION FUND

Your Company has transferred unclaimed and unpaid amounts aggregating to Rs.130304.During the financial year 2016-17 there was no unclaimed dividend which was required tobe transferred to Investor Education and Protection Fund of Government of India.

EMPLOYEES STOCK OPTION SCHEME

During the year under review no stock options were vested in eligible employees. Thedisclosure under Regulation 14 of the Securities and Exchange Board of India (Share BasedEmployee Benefits) Regulations 2014 is set out in Annexure - I to this Report.

INFORMATION TECHNOLOGY

Your Company has already embarked on the journey of digitization. The achievements ofIT and SAP in 2016-2017 is earmarked for its effort and contribution in making smoothtransition of the transactions and processes according to the business restructuring.Powered with the knowledge of SAP system and experience of Company's business process theteam has studied designed and mapped the confluence of changed business processes in SAPfor carrying out critical restructuring activities within target timeline.

The team has also contributed in enhancing several business functionalities andincorporating multiple controls and checks to achieve valued Business benefits. Theintegrated IT and SAP support framework is enabling Management team in making timelyinformed business decisions based on MIS which is directly derived from real timetransactional data. The IT team is also able to provide timely secured integratedreliable services throughout the year.

Apart from the sustained support rendered major concurrent additional IT facilitiesextended and applications were developed to meet dynamic needs of various businessfunctions.

Going forward the IT and SAP department plans to explore the new and technologicallyadvanced horizon of SAP architecture and functionalities to meet upcoming businessrequirements.

CONSOLIDATED FINANCIAL STATEMENTS

In accordance with the Companies Act 2013 SEBI LODR and Ind-AS on ConsolidatedFinancial Statements read with AS- 23 on Accounting for investments in Associates andAS-27 on Financial Reporting of interests in Joint Ventures the Audited ConsolidatedFinancial Statements are provided in the Annual Report.

SUBSIDIARY COMPANIES/JOINT VENTURES/ASSOCIATE COMPANIES

Your Company follows its global ambition to build a premium brand name for its qualityStainless Steel solutions and expertise with the ambition and with a view of expansion anddiversification it has created multiple subsidiaries associates and joint ventures. Ason the date of this Report your Company has 5 direct subsidiaries namely (i) JindalStainless UK Limited; (ii) Jindal Stainless FZE Dubai; (iii) PT Jindal StainlessIndonesia; (iv) JSL Group Holdings Pte. Ltd. Singapore; and (v) Iberjindal S.L. Spain.

Your Company also has two joint venture companies namely MJSJ Coal Limited and JindalSynfuels Limited and three associate companies namely Jindal United Steel Limited JindalCoke Limited and Jindal Stainless Corporate Management Services Pvt. Ltd. Further yourCompany is an associate company of Jindal Stainless (Hisar) Limited.

During the financial year ended 31st March 2017 Jindal United Steel Limited andJindal Coke Limited ceased to be subsidiaries of your Company and the followingsubsidiaries of your Company were closed down: (i) Jindal Stainless Italy S.r.l. (ii) JSLGroup Holdings Pte. Ltd. Singapore (iii) JSL Ventures Pte. Ltd. Singapore and (iv)Jindal Aceros Inoxidables S. L. Spain.

The Financial Statements of Subsidiary Companies are kept open for inspection by theshareholders at the Registered Office of your Company during business hours on all daysexcept Saturdays and Sundays and public holidays up to the date of Annual General Meeting(AGM) as required under Section 136 of the Companies Act 2013. The members if theydesire may write to the Secretarial Department of the Company at O.P. Jindal Marg Hisar- 125005 (Haryana) to obtain the copy of the annual report of the subsidiary companies.The Financial Statements including the Consolidated Financial Statements and all otherdocuments required to be attached with this Report have been uploaded on the website ofyour Company viz. www.jslstainless.com.

A statement containing the salient features of the financial statement of thesubsidiaries and associate companies in the prescribed Form AOC - 1 is attached alongwithfinancial statement. The statement also provides the details of performance and financialposition of each of the subsidiary company.

Your Company has framed a policy for determining "Material Subsidiary" interms of Regulation 16(6) of SEBI LODR. The Policy for determining material subsidiariesas approved may be accessed on your Company's website at the link:http://jslstainless.com/pdf/Policy%20on%20Material%20Subsidiaries.pdf DIRECTORS AND KEYMANAGERIAL PERSONNEL

Post last AGM held on 30th December 2016 Ms. Ishani Chattopadhyay has ceased to beDirector w.e.f. 9th May 2017. The Board places on record its sincere appreciation for thevaluable contributions made by her during her tenure. The Board has appointed Mr.Kanwaljit Singh Thind Ms. Bhaswati Mukherjee and Mr. Abhyuday Jindal as AdditionalDirectors w.e.f. 11th May 2017 15th July 2017 and 9th August 2017 respectively. Therequisite resolutions for the appointment of Ms. Bhaswati Mukherjee as an IndependentDirector and for the appointment of Mr. Abhyuday Jindal as a Director and Non-ExecutiveVice-Chairman will be placed before the shareholders for their approval.

Further Mr. Raajesh Kumar Gupta has ceased to be the Company Secretary and ComplianceOfficer of your Company w.e.f. 31st March 2017. The Board places on record its sincereappreciation for the valuable contributions made by him during his tenure.

The Board of Directors has appointed Mr. Anurag Mantri as the Chief Financial Officerw.e.f. 7th February 2017. The Board has also designated him as the Key ManagerialPersonnel (KMP) of your Company. Mr. Ashish Gupta has relinquished the position of ChiefFinancial Officer of the Company w.e.f. 7th February 2017.

Mr. Ratan Jindal who retires by rotation at the ensuing Annual General Meeting underthe provisions of the Companies Act 2013 and being eligible offers himself forre-appointment.

Brief resumes of the abovementioned Directors nature of their expertise in specificfunctional areas details of Directorship in other companies membership/chairmanship ofcommittees of the board and other details as stipulated under Regulation 36(3) of SEBILODR and Secretarial Standard - 2 issued by the Institute of Company Secretaries of Indiaare given in the Notice forming part of the Annual Report.

All Independent Directors have given declaration to the Company that they meet thecriteria of independence as provided in Section 149(6) of the Companies Act 2013.

Your Company has also devised a Policy on Familiarization Programme for IndependentDirectors which aims to familiarize the Independent Directors with your Company nature ofthe industry in which your Company operates business operations of your Company etc. Thesaid Policy may be accessed on your Company's website at the link:

http://jslstainless.com/pdf/DETAILS%20OF%20FAMILIARIZATION%20%20PROGRAMMES%20IMPARTED%20TO%20INDEPENDENT%20DIREC

TORS%20JSL.pdf

BOARD EVALUATION

An annual performance evaluation of all Directors the Committees of Directors and theBoard as a whole was carried out during the year. For the purpose of carrying outperformance evaluation assessment questionnaires were circulated to all Directors andtheir feedback was obtained and recorded.

POLICY ON DIRECTORS' APPOINTMENT AND REMUNERATION POLICY

Pursuant to the provisions of Section 178 of the Companies Act 2013 and the SEBI LODRthe Board of Directors has approved the (i) Policies for nomination and selection ofIndependent Directors and Non-Executive Non-Independent Directors and (ii) RemunerationPolicy on the recommendation of the Nomination and Remuneration Committee of your Company.The said policies may be accessed on your Company's website at the link:

http://www.jslstainless.com/pdf/JSL%20Remuneration%20Policy.pdf

FIXED DEPOSITS

Your Company had stopped accepting/renewing deposits from 1st April 2014. In responseto a petition filed by your Company the Company Law Board ("CLB") had vide itsOrder dated 6th May 2015 allowed extension of time upto 30th June 2016 for repaymentof the entire outstanding Deposits along with interest due thereon and also directed yourCompany to make payments to those depositors who approach your Company before 30th June2016.

As on 31st March 2017 your Company had total outstanding unclaimed Deposits ofRs.5576684 (including unclaimed deposits). In compliance of the CLB Order your Companyhas repaid the entire outstanding deposits on 30th June 2016.

The details relating to deposits covered under Chapter V of the Companies Act 2013are provided hereunder:

(a) accepted during the year: Nil

(b) remained unpaid or unclaimed as at the end of the year due to pending clearance ofcheques including interest : Rs.5576684

(c) whether there has been any default in repayment of deposits or payment of interestthereon during the year and if so number of such cases and the total amount involved:-

(i) at the beginning of the year: Not Applicable

(ii) maximum during the year: Not Applicable

(iii) at the end of the year: Not Applicable

The details of deposits not in compliance with the requirements of Chapter V of theAct: Nil

PARTICULARS REGARDING THE CONSERVATION OF ENERGY TECHNOLOGY ABSORPTION FOREIGNEXCHANGE EARNINGS AND OUTGO

The information on conservation of energy technology absorption and foreign exchangeearnings and outgo stipulated under Section 134(3)(m) of the Companies Act 2013 read withRule 8 of the Companies (Accounts) Rules 2014 is annexed herewith as Annexure - II formingpart of this Report.

PARTICULARS OF EMPLOYEES

In terms of the provisions of Section 197(12) of the Companies Act 2013 read withRules 5(2) and 5(3) of the Companies (Appointment and Remuneration of ManagerialPersonnel) Rules 2014 a statement showing the names and other particulars of theemployees drawing remuneration in excess of the limits set out in the said Rules areprovided in the Annual Report which forms part of this Report.

Disclosure pertaining to remuneration and other details as required under Section197(12) of the Companies Act 2013 read with Rule 5(1) of the Companies (Appointment andRemuneration of Managerial Personnel) Rules 2014 are provided in the Annual Report whichforms part of this Report.

Having regard to the provisions of the first proviso to Section 136(1) of the Act theAnnual Report excluding the aforesaid information is being sent to the members of theCompany. The said information is available for inspection at the Registered Office of theCompany during working hours and any member interested in obtaining such information maywrite to the Secretarial Department of the Company and the same will be furnished onrequest.

STATUTORY AUDITORS AND AUDITORS' REPORT

As per provisions of the Companies Act 2013 read with the Companies (Audit andAuditors) Rules 2014 M/s. Lodha & Co. and M/s. S.S. Kothari Mehta & Co. havingheld office as Joint Statutory Auditors for a period of more than ten years prior to thecommencement of the Companies Act

2013 were eligible to be appointed as Joint Statutory Auditors for a period of threemore years and were accordingly appointed by the members in the 34th Annual GeneralMeeting of your Company held on 22nd September 2014 for a period of three consecutiveyears until the conclusion of the 37th Annual General Meeting of your Company.Accordingly M/s. Lodha & Co. and M/s. S.S. Kothari Mehta & Co. CharteredAccountants will hold office till the conclusion of the ensuing Annual General Meeting ofyour Company.

After evaluating the Country's leading Audit Firms the Board of Directors hasidentified and recommended the appointment of Walker Chandiok & Co. LLP CharteredAccountants as Statutory Auditors of your Company for a period of five consecutive yearsfrom the conclusion of 37th Annual General Meeting upto the conclusion of the 42nd AnnualGeneral Meeting of your Company subject to ratification by members at every AnnualGeneral Meeting. Walker Chandiok & Co. LLP was established in 1935. It is anindependent Indian partnership firm that provides audit tax and advisory services. It has43 partners and more than 900 staff out of 12 offices across India. It is registered withthe Institute of Chartered Accountants of India as well as the PCAOB (US Public CompanyAccountancy Oversight Board).

Walker Chandiok & Co. LLP Chartered Accountants have expressed their willingnessto be appointed as Statutory Auditors of the Company. They have further confirmed that thesaid appointment if made would be within the prescribed limits as per the provisions ofthe Companies Act 2013 and that they are not disqualified for appointment. Accordinglyrequisite resolution for appointment of Walker Chandiok & Co. as Statutory Auditors ofyour Company is placed for your approval.

The Notes on financial statement referred to in the Auditors' Report areself-explanatory and do not call for any further comments. The Auditors' Report does notcontain any qualification reservation or adverse remark.

COST AUDITORS

In accordance with the provisions of Section 148 of the Companies Act 2013 read withthe Companies (Cost Records and Audit) Rules 2014 as amended from time to time yourCompany is required to get its cost accounting records audited by a Cost Auditor and hasaccordingly appointed M/s. Ramanath Iyer & Co. Cost Accountants for this purpose forFY 2017-18. The Cost Auditors' Report for the FY 2016-17 does not contain anyqualification reservation or adverse remark.

The remuneration of the Cost Auditors shall be placed for ratification by members interms of Section 148 of the Companies Act 2013 read with Rule 14 of the Companies (Auditand Auditors) Rules 2014.

SECRETARIAL AUDITORS

The Board has appointed M/s. Vinod Kothari & Company Practicing CompanySecretaries to conduct Secretarial Audit for the financial year 201718. The SecretarialAudit Report for the financial year ended March 31 2017 is annexed herewith marked as Annexure- III to this Report. The Secretarial Audit Report does not contain any qualificationreservation or adverse remark.

CORPORATE SOCIAL RESPONSIBILITY

The Corporate Social Responsibility Committee has formulated and recommended to theBoard a Corporate Social Responsibility Policy ("CSR Policy") indicating thefocus areas of Company's CSR activities.

In line with the CSR philosophy and the focus areas your Company has plannedinterventions in the fields of education & vocational training integrated healthcare women empowerment social projects rural infrastructure development environmentsustainability sports preservation of art and culture. The Disclosure as per Rule 9 ofthe Companies (Corporate Social Responsibility Policy) Rules 2014 is annexed to thisReport at Annexure - IV.

The CSR Policy can be accessed on your Company's website at the link:http://jslstainless.com/pdf/JSL%20CSR%20Policy.pdf INTERNAL FINANCIAL CONTROLS

Your Company has in place adequate internal financial controls with reference tofinancial statements. During the year such controls were tested and no reportablematerial weakness in the design or operation was observed.

SEXUAL HARASSMENT POLICY

Your Company has in place a policy on prevention of sexual harassment at workplace inaccordance with the provisions of Prevention Prohibition and Redressal of SexualHarassment of Women at Workplace Act 2013. The policy aims at prevention of harassment ofemployees and lays down the guidelines for identification reporting and prevention ofsexual harassment. There is an Internal Complaints Committee (ICC) which is responsiblefor redressal of complaints related to sexual harassment and follows the guidelinesprovided in the policy.

During the year ended 31st March 2017 no complaints were received pertaining tosexual harassment.

AUDIT COMMITTEE

The Audit Committee comprises of the following four Directors out of which three areIndependent Directors:

Sl. No. Name Status Category
1 Mr. Suman Jyoti Khaitan Chairman Independent Director
2 Mr. T. S. Bhattacharya Member Independent Director
3 Mr. Kanwaljit Singh Thind * Member Independent Director
4 Mr. Gautam Kanjilal Member Nominee Director Non-Independent

* Mr. Kanwaljit Singh Thind was inducted as a Member of the Audit Committee w.e.f.11th May 2017. Ms. Ishani Chattopadhyay ceased to be a Member of the Audit Committeew.e.f. 9th May 2017.

All the recommendations made by the Audit Committee during the financial year 2016-17were accepted by the Board.

CORPORATE SOCIAL RESPONSIBILITY COMMITTEE

The Corporate Social Responsibility Committee comprises of the following threeDirectors out of which one is Independent Director:

Sl. No. Name Status Category
1 Mr. Ratan Jindal Chairman Executive Non Independent
2 Mr. S. Bhattacharya Member Executive Non Independent
3 Mr. T.S. Bhattacharya Member Non-Executive Independent

STOCK EXCHANGES WHERE THE SHARES ARE LISTED

National Stock Exchange of India Ltd. ("NSE") BSE Ltd.
Exchange Plaza 5th Floor Plot No. C/1 Phiroze Jeejeebhoy Towers
G - Block Bandra-Kurla Complex Dalal Street
Bandra (E)Mumbai - 400 051 Mumbai - 400 001

The annual listing fee was paid to both the stock exchanges. No shares of your Companywere delisted during the financial year 2016-17.

EXTRACT OF ANNUAL RETURN

The details forming part of the extract of the Annual Return in form MGT 9 is annexedherewith as Annexure -V.

NUMBER OF BOARD MEETINGS

The Board of Directors met 5 (five) times during the financial year ended on 31stMarch 2017. The details of Board Meetings and the attendance of the Directors areprovided in the Corporate Governance Report forming part of this Annual Report.

WHISTLE BLOWER POLICY/VIGIL MECHANISM

Pursuant to the provisions of Section 177(9) of the Companies Act 2013 read with theCompanies (Meetings of Board and its Powers) Rules 2014 and Regulation 22 of the SEBILODR your Company has a Vigil Mechanism namely Whistle Blower Policy for directorsemployees and business partners to report genuine concerns about unethical behavioractual or suspected fraud or violation of your Company's code of conduct or ethics policy.The Whistle Blower Policy is posted on the website of your Company and can be accessed atthe link: http://jslstainless.com/pdf/WB%20Policy.pdf

PARTICULARS OF LOANS GUARANTEES OR INVESTMENTS BY THE COMPANY UNDER SECTION 186

The particulars of loans guarantees or investments by your Company under Section 186are stated in Notes to Accounts forming part of this Annual Report.

CONTRACTS OR ARRANGEMENTS WITH RELATED PARTIES

Particulars of contracts or arrangements entered into by your Company with the relatedparties referred to in Section 188(1) of the Companies Act 2013 in prescribed formAOC-2 is attached as Annexure - VI to this Report.

All related party transactions that were entered and executed during the year underreview were at arms' length basis. As per the provisions of Section 188 of the CompaniesAct 2013 and Rules made thereunder read with Regulation 23 of SEBI LODR your Company hadobtained prior approval of the Audit Committee under omnibus approval route and/or underspecific agenda before entering into such transactions.

Your Directors draw attention of the members to Note 47 to the financial statementswhich sets out related party disclosures. The Policy on materiality of related partytransactions and dealing with related party transactions as approved by the Board may beaccessed on your Company's website at the link:http://jslstainless.com/pdf/Policy%20on%20dealing%20with%20Related%20Party%20Transactions.pdf In terms of Regulation 23 of the SEBI LODR all transactions withrelated parties which are material in nature are subject to the approval of the Membersof your Company. The requisite resolution in order to comply with the aforesaidrequirements of Regulation 23 of SEBI LODR as detailed at Item No. 7 of the Notice andrelevant Explanatory Statement is commended for the members' approval.

RISK MANAGEMENT

Your Company has laid down procedures to inform Board members about the risk assessmentand minimization procedures. These procedures are periodically reviewed to ensure thatexecutive management controls risk through means of a properly defined framework. YourCompany has also devised a Risk Management Policy for identification of elements of risksand procedures for reporting the same to the Board.

The change in the nature of business if any

There has been no change in the nature of Company's business during the financial yearended on 31st March 2017.

Material Changes and Commitments if any affecting the financial position of theCompany.

During the quarter ended 30th June 2017 your Company has achieved total gross incomeof Rs.2203.86 Crore with EBIDTA of Rs.250.52 Crore. Your Company incurred earned netprofit of Rs.41.50 Crore during this period.

On 26th May 2017 the Company has allotted (I) 60570320 equity shares of Rs.2 eachfully paid up ("Equity Shares") and (ii) 142830637- 0.01% OptionallyConvertible Redeemable Preference Shares of Rs.2 each fully paid up ("OCRPS") tothe Lenders of the Company upon conversion of Funded Interest Term Loan I & II at aprice of Rs.39.10 (including premium of Rs.37.10) per share aggregating to Rs.236.83 Croreand Rs.558.47 Crore respectively. The conversion rights of balance FITL into EquityShares/OCRPS stands lapsed.

Any significant and material orders passed by the regulators or courts or tribunalsimpacting the going concern status and company's operations in future.

During the financial year there is no such significant material orders passed by theregulators or courts or tribunals impacting the going concern status and Company'soperations in future.

DIRECTORS' RESPONSIBILITY STATEMENT

Pursuant to the requirement under Section 134(5) of the Companies Act 2013 withrespect to directors' responsibility statement it is hereby confirmed that:

(a) in the preparation of the annual accounts the applicable accounting standards hadbeen followed along with proper explanation relating to material departures;

(b) the Directors had selected such accounting policies and applied them consistentlyand made judgments and estimates that are reasonable and prudent so as to give a true andfair view of the state of affairs of the Company as at 31st March 2017 and of the profitand loss of the Company for the year ended on that date;

(c) the Directors had taken proper and sufficient care for the maintenance of adequateaccounting records in accordance with the provisions of the Companies Act 2013 forsafeguarding the assets of the Company and for preventing and detecting fraud and otherirregularities;

(d) the Directors had prepared the annual accounts on a going concern basis;

(e) the Directors had laid down internal financial controls to be followed by theCompany and such internal financial controls are adequate and were operating effectively;and

(f) the Directors had devised proper systems to ensure compliance with the provisionsof all applicable laws and that such systems were adequate and operating effectively.

CORPORATE GOVERNANCE

A separate section on Corporate Governance and a certificate from the practicingCompany Secretary regarding compliance of conditions of Corporate Governance as stipulatedunder the SEBI LODR form part of this Annual Report.

ACKNOWLEDGEMENT

Your Directors would like to express their gratitude for the valuable assistance andco-operation received from shareholders banks government authorities customers andvendors. Your Directors also wish to place on record their appreciation for the committedservices of all the employees of the Company.

For and on behalf of the Board of Directors
Place : New Delhi Ratan Jindal
Date : 9th August 2017 Chairman and Managing Director

ANNEXURE II TO DIRECTORS' REPORT

CONSERVATION OF ENERGY TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS AND OUTGOPURSUANT TO PROVISIONS OF SECTION 134 OF THE COMPANIES ACT 2013 READ WITH THE COMPANIES(ACCOUNTS) RULES 2014.

(A) CONSERVATION OF ENERGY

The steps taken for conservation of energy:

1. Ferro Alloy Plant Energy Conservation

• Utilizing waste heat out of gases generated from 60 MVA furnaces by passingthrough WHRB & generating steam which is supplied to CRM. Approx 118901 tones of steamgenerated in FY 2016-17 utilizing waste heat of flue gases. To generate equivalent amountof steam quantity approx 31290 metric tons of coal is required thereby saving ofRs.84483000 per annum.

• Modification of bottom blower circuit at SAF-5 which provides energy saving of33288 KWh per annum. Annual Savings- Rs.1.9 Lakhs with an investment of Zero.

2. Captive Power Plant Energy Conservation

• Cooling Tower fan-6 Shaft Blade & Gear box modification carried outresulting a substantial reduction of energy consumption for achieving the same coolingeffect with saving of 287021 KWh/Year .Annual saving- Rs.16.5 Lakhs Cost incurred -Rs.4.9 Lakhs

• Installation of electronic actuator instead of pneumatic actuator in BFP#1A& BFP#2A resulted in process optimization as well as a saving on compressed air whichis around 38914 KWh/Year. Annual saving- Rs.2.24 Lakhs Cost incurred - Rs.7.4 Lakhs

• Installation of electronic actuator instead of pneumatic actuator in PA Fan # 2A& PA Fan # 2B resulted in process optimization as well as a saving on compressed airwhich is around 27337 KWh/Year. Annual saving- Rs.1.57 Lakhs Cost incurred - Rs.5.48Lakhs

3. Cold Rolling Mill Energy Conservation

• Replacement of 250 watt HPMV lights with 35 watt LED lights at HAPL Lopper inorder to save energy. Annual Savings - Rs.7.9 Lakhs Cost incurred- Rs.1.85 Lakhs.

• Replacement of 250 watt HPMV shed lights with 150 watt LED lights at CAPL inorder to save energy. Annual Savings - Rs.5.03 Lakhs Cost incurred - Rs.4.92 Lakhs.

• Installation of 180KVA Energy Saver panel for shed lights at finishing line toreduce the energy consumption due to lighting. Annual Savings - Rs.3.82 Lakhs Costincurred - Rs.2.75 Lakhs.

4. Steel Melt Shop Energy Conservation

• Reduction in EAF power consumption achieved by (a) Use of cleaner scrap and highyield material (b) Trials with AOD slag addition (c) Increased use of liquid Ferro Chrometo an extent of 3628238 KWh per annum. Annual Savings - Rs.208.62 Lakhs Cost incurred -Nil.

• Energy Savings achieved in LRF by Minimal purging in lead heats of longersequences to an extent of 1451295 KWh per annum. Annual Savings - Rs.83.5 Lakhs Costincurred - Nil.

FORM OF DISCLOSURE OF PARTICULARS WITH RESPECT TO TECHNOLOGY ABSORPTION

1. Specific areas in which the Company carried out Research and DevelopmentCertifications:

Jindal Stainless Limited is certified for various product and system certificationsincluding integrated management system comprising of ISO 9001:2008 Quality ManagementSystem (ISO 9001:2008) Environment Management System (ISO 14001:2004) and Health andSafety Management System as per BS OhSaS 18001:2007. And further up-gradation of ISO 9001& 14001 for 2015 version is under process.

The Company is now in receipt of REACH/RoHS certification for 200 300 & 400 seriesstainless steel grades. This includes compliance to the 7 new additions of substances ofvery high concern (SVHC) in the REACH regulation 1907/2006. Scope of Construction ProductDirective (CE Marking) certification is expanded to include grades - EN 1.4003 1.40161.4512 and 1.4372. This has enabled the Company to be the preferred and certifiedmanufacturers of stainless for construction field in European market with 10 gradescovered under CE marking scope. Validity of AD/ PED certification has been extended to Feb2019 along with the grade additions of EN 1.4003. The Company's unit has also successfullycompleted DNV audit against DNV guidelines for Manufacturer Product Quality Assessment(Level 4) and Marine approvals.

Quality Assurance Steel Melt shop & Material laboratory have availed NABLaccreditation as per ISO 17025: 2005. Also Metallurgical & Mechanical testingfacility of Quality Assurance laboratory is in process of enhancing the testing standardsin line with the requirements of NABL as per ISO 17025: 2005. The Company's Jajpur unit isin the process of incorporating Energy Management System (ISO 50001:2011) to the existingintegrated management system comprising of QMS eMs and OHSAS.

The Company is in receipt of ISI mark/ BIS certification for Stainless Steel grades forAustenitic & Ferritic series as per IS 6911: 1992 (Stainless steel plate sheet andstrips). This has enabled the Company to be first stainless steel manufacturer to receiveBIS license for stainless steel as per IS 6911: 1992. Furthermore the Company has alsoavailed ISI mark/ BIS certification of stainless steel standards as per IS 5522: 2014(Stainless Steel Sheets and Strips for Utensils) & IS 15997:2012 (Low NickelAustenitic Stainless Steel and Strip for Utensils and Kitchen Appliances). The Company'shas also successfully carried out marking of product as per IS 6911:1992 IS 5522:2015& IS 15997:2012 thus meeting the mandatory requirements of Government of India in theministry of Steel.

The Company has also successfully completed audit & testing as per JapaneseIndustrial standard & certification is awaited from Japan Quality AssuranceOrganization (JQA) soon. This will enable to dispatch material in Export market with JISCertification as per JIS G 4304(Hot-Rolled Stainless Steel Plate Sheet and Strip) JIS G4305(Cold-Rolled Stainless Steel Plate Sheet and Strip) & JIS G 4312(Heat-resistingSteel Plate Sheet and Strip).

Development of new products:

Additions of various Developmental SS grades at Jajpur unit in FY 2016-17 UNS S32205for fabrication purpose for further usage in marine applications 410 for materialhandling in coal industries 321H for high temperature tube applications EN 1.4306 forgeneral application and HNS for use in defence as material for Mine Protected Vehicle.Developmental achievements include 2J finish supply in grade 304L to customer Bombardierin 2mm thickness.

2. Developmental achievements & Process Improvement:

Developmental Achievements

• Major developmental achievements includes substitution of 2B finish throughdouble 2E+SPM instead of processing at CAPL in grade 304 JT in suitable thickness &applications.

• Modification of chemistry in grade JSLUDD in order to minimize Sliver-B.

• Improvement in polishability of grades - JSLSD/ DD.

• Reduced surface roughness in grade 430 by controlling de-scalling practices andpickling parameters in continuous annealing & pickling line.

Process Achievements:

• Major Process improvement achievements include minimization of Ferriticsegregation in grades 304/304L through optimization of chemistry grinding practices &HSM practices.

• Minimization of defect slab scale in grades 304/304L through slab grinding

• Minimization of slab edge in 300sr grades through slab de-burring & edgerroll practice change.

• Improvement in productivity in grade 409L at HAPL/CAPL through increased coldreduction & optimization of CRM processing parameters.

• Minimization of Roll Thermal Crack in grade 410DB & 410S by optimizingcasting parameters.

3. Cost reduction:

• Minimising slab grinding in grade 304.

4. Benefits derived:

• Scope of construction and Product directive certification (CE marking) -Preferred and certified manufacturers of stainless for construction field in Europeanmarket with 10 grades covered under CE marking scope.

• Incorporation of ISI/BIS certification as per IS 6911:1992 has also enabled theCompany to be the first stainless steel manufacturer to receive BIS license for stainlesssteel.

• Receipt of REACH/RoHS certification for 200/300/400 series grades.

• ISI/BIS certification in carbon steel IS 10748:2004 and IS 2062:2011 and mildsteel standard IS 11513:2011 & IS 6240:2008.

• Value addition of Grade - 304L 2J finish-new application include making ofmetro coaches by Bombardier.

5. Future action plan:

• Development & stabilisation of new grades such as 904L 409Ni 444 445347 UNS 32101.

• Development of value-added products in 2J Hairline finish.

6. Expenditure on R&D:

2016-17 (' in Lakhs)
Capital 100
Revenue 45
Total 145
Total R&D expenditure as percentage of turnover 0.002%

A. Cold Rolling Mill

I. Efforts made in brief towards technological absorption adaptation and innovation:

Jajpur CRM plant comprises the latest technology from Europe any and every increase inyield or decrease in consumables has a large effect on the carbon foot print & alsocost to the company. Being one of the leading producers of the SS in the country &even with the state-of-the-art technology and equipments we have made continual efforts tofurther reduce wastages and improve beyond the designed capabilities.

Taking a step forward to the mission of the Company CRM also catered materials tocustomers like Bombardier this year and have been successfully acknowledged by thecustomer regarding our superior product quality.

CRM has also been continually making efforts in making out maximum from the existingresource like:

- Commissioning of a new In-house constructed container/ packet loading device inCRM.

- Faster Loading

- Capacity optimization

Other facilities/developments are done for better environment & cost effectiveness.

• Successfully provided 100 MT of 2J finish material to Bombardier customer.

• Installation of lime handling project as a statutory requirement for healthimprovement and safety compliance.

• Successfully processed 2EE finish in grades like 304 JT & 409L

• Achieved success in rolling weld joint at CAPL which will bring forth high yieldand cost optimization in future.

• Formed teams to target masses to create awareness in safety housekeeping andfor self development : Special 26 to connect masses on safety Crazy CRM for encouragingHousekeeping and 10 Ka Dum for skill developments by imparting training.

II. Benefits derived as a result of the above efforts:

The overall benefits from the initiatives taken are apparent. To name some:

• In view of Social responsibility for better environment & cost effectivenessreduction in steel wastage by Overall Yield improvement.

• Increased energy efficiency through Power saving by 40%.

• Reduced carbon footprint by minimizing propane consumption by 40%.

• Improved productivity led to rise in finish production in FY'16-17 by 19% wrtFY'15-16

Production Quantity (MT) for FY'2016-17 is as below:

• HAPL: 0.592 million ton

• CAPL: 0.345 million ton

• HR FIN: 0.239 million ton

• CR FIN: 0.434 million ton

B. Steel Melting Shop

I. Efforts made in brief towards technological absorption adaptation and innovation:

• Steel melting shop with its augmented state of the art facility has shownstupendous performance by increasing its annual production by 17% to 725.6 KT from 603.9KT in last fiscal. Significant efforts have been made towards reduction of both conversioncost and raw material cost by continual improvement of operating practices which led todecline of costs incurred for refractory power fuel and electrode and use of cheaper rawmaterial sources like LMS and Solumet sinters. As initiative to utilize low variant of Nisuccessful de-phosphorization of Nickel pig iron has also been carried out in electric arcfurnace.

• Pollution dust and mill scale sample has been tested at IMMT Bhubaneswar forextraction of valuable metal from above by product of SMS thereby showing its commitmenttowards resource saving and re-utilization.

• Alongside production the commitment towards environment and safety has been ofhighest order. A positive trend is also evident in the energy utilization of thedepartment with reduction in usage of both electrical energy and fuel sources as comparedto the previous years. New grades like UNS 2205 HNS 321H were produced which added newdimension stainless steel market segment.

• The Company has tied up with IMMT Bhubaneswar in recovering valuable metal frompollution dust and mill scale thereby showing its commitment towards resource saving andre-utilization.

II. Benefits derived as a result of the above efforts:

• Efforts towards continual improvement have resulted in 20% increase in capacityutilization of plant compared to last fiscal.

• EAF operated at highest life of 497 heats without repair.

• Significant improvement in AOD achieving ever highest of 174 Heats with highestproductivity of tapping of 19 heats in a day is an evidence of our efforts towards processefficiency.

• As cast achieved upto 97% and operated caster with ever highest speed of 1.35m/min.

• In house roller table extension of caster has been carried out which reduced theload of caster bay crane load by 10%.

C. Ferro Alloys

The production at Ferro Chrome during the year FY 2016-17 was 0.205 million ton against0.142 million ton in FY 2015-16.

I. Efforts made in brief :

• Commissioning of second press of capacity 30 TPH in Briquetting plant -2

• Ferro Chrome conversion agreement for 7000 MT per month entered with M/s TATASteel for four years to ensure supply of raw material

• A dedicated team was engaged optimize the liquid Ferro Chrome transfer to SMSfrom 60 MVA as well as 27.6 MVA furnaces too.

• Effective utilization of storage shed -2 for proper storage of green briquettes.

• 100% utilization of domestic electrode carbon paste also conversion &stabilization of 27.6 MVA furnaces with M/s Carbon Resource paste.

II. Benefits derived as a result of the above efforts:

• Continuous availability of raw materials paved the way to run all five furnacesthroughout the year producing 66515 MT of TATA Ferro Chrome & reach a totalproduction of 205510 MT Ferro Chrome production resulting in capacity utilization of FerroAlloys & continuous utilization of power from CPP.

• The transfer of liquid Ferro Chrome to SMS is 58092 MT in FY 16-17 against 50488MT in the FY 2015-16.

• Briquette fines generation has come down to 20% in FY16-17 compared to 29% in FY15-16 at higher production volume also.

• Alternate supplier availability & also the cost of M/s Carbon resource pasteis less about Rs.1000 than M/s Hindalco paste giving a benefit of about Rs.18 per tonne ofproduction from 27.6 MVA furnaces.

D. Captive Power Plant

Captive Power Plant (2X125MW) generated 1784.923 million units (gross) of power. Outof the total generation 1587.215 million units were consumed at Jajpur plant and 55.923million units sold through exchange. Total plant load factor gross generation achieved 85%in 2016-17.

Efforts made:-

• Energy savings potential of 214566 units/year achieved by modifying CT Fan-6at required vacuum effecting low power consumption in auxiliaries.

• Energy savings potential of 3600 units/year achieved by modifying RO PlantHRSCC sludge discharge system by replacing motorize system to gravity system.

• Energy savings potential of 27337 units/year achieved by application ofelectronic actuator instead of pneumatic actuator in U#2 both PA fans.

• Energy savings potential of 38948 units/year achieved by application ofelectronic actuator instead of pneumatic actuator in BFP#1A & BFP#2A.

• By commissioning of Reverse Osmosis plant for effective reuse of Cooling TowerBlow down water 500 m3/Day Cooling Tower Blow down water is recycled & equivalent makeup water is reduced.

Future action plan:

• APH main motor to be replaced by energy efficient motor.

• All CT fan except Fan - 6 to be modified by fiber materials with effecting oflow power consumption.

• U#1 both PA Fans to be modified by application of electronic actuator instead ofpneumatic actuator.

• Energy to be saved /year achieved by application of electronic actuator insteadof pneumatic actuator in BFP#1B & BFP#2B.

II. Benefits derived as a result of the above efforts:-

(b) CRMHS (Central Raw material handling system)

Efforts made:

In order to minimize the cost of unloading truck tippler 1&2 project has beencommissioned with total unloading of 140343 MT from 7486 trucks up to Mar'17. Parallelconveyor J4C2 has also been commissioned which helps in direct stacking of coking coalwithout hampering Truck Tippler unloading and CPP feeding. By installation of Pre wettingand Water Mist System in Wagon Tippler fugitive dust emission from coal unloading has beensuppressed.

II. Benefits derived as a result of the above efforts

• The transportation cost of coal reduced.

• The generation cost of power reduced.

• The Handling losses during transportation reduced.

• The mixing of foreign materials with coal in the general railway siding hasminimized.

• The cost of coal feeding has reduced as feeding is directly from the wagontippler to bunkers of coke oven and CPP.

Future action plan:

Installation of parallel conveyor J12C2 which will reduce the risk of single conveyorfeeding to CPP and ensure redundant conveyor line for continuous coal feeding.

Benefits derived as a result of the above efforts

The unloading cost of coal reduced by Rs 40/MT by truck tippler over manualunloading.

The generation cost of power reduced due to lower coal handling cost (Avg.1.2p/Unit).

The penalty for delay in unloading of rake imposed by Railways is avoided.

The environmental impact due to fugitive dust emission has reduced.

E. Railway Siding

I. Efforts made in brief towards technological absorption adaptation and innovation:

(a) After starting operations in November 2015 the JSL Railway Siding has been on acontinuous path of increasing traffic volume catering to different commodities likecontainerized cargo and bulk cargo like coal fluxes and also carbon steel slabs and HRcoils. Multimodal concept for despatch of SS has also been incorporated successfully. Thehighest traffic volume reached 103 rakes in November 2016.

(b) For lashing and choking of FG export containers an innovative method usingExpandable Polystyrene blocks (EPS) has been adopted. Presently about 500 containers arebeing stuffed using this method.

II. JSL-Railway Siding Benefits derived as a result of the above efforts:

(a) Consistent operations of railway siding have resulted in substantial savings onfreight in addition to effective control on transit losses and pilferage. This has alsoresulted in reducing road congestion inside and outside the plant thereby improvingvehicle turnaround time and enhancing safety.

(b) Lashing and choking using EPS blocks has resulted in significant reduction invehicle turnaround time and also cost of container stuffing.

FUTURE PLAN FOR THE RAILWAY SIDING

The ICD project is in and advanced stage and due for completion and commissioning inthe next three months. This will improve container availability and also reducetransportation and detention costs.

Foreign Exchange Earnings & Outgo 2016-17 (' in Crore)
Foreign Exchange Earnings 2304.52
Foreign Exchange Outgo 3082.56