You are here » Home » Companies » Company Overview » Jindal Steel & Power Ltd

Jindal Steel & Power Ltd.

BSE: 532286 Sector: Metals & Mining
NSE: JINDALSTEL ISIN Code: INE749A01030
BSE LIVE 15:40 | 22 Aug 128.90 -2.80
(-2.13%)
OPEN

133.65

HIGH

134.35

LOW

128.15

NSE 15:59 | 22 Aug 129.00 -2.70
(-2.05%)
OPEN

133.50

HIGH

134.35

LOW

128.10

OPEN 133.65
PREVIOUS CLOSE 131.70
VOLUME 1110077
52-Week high 159.00
52-Week low 62.55
P/E
Mkt Cap.(Rs cr) 11,794
Buy Price 129.00
Buy Qty 2424.00
Sell Price 0.00
Sell Qty 0.00
OPEN 133.65
CLOSE 131.70
VOLUME 1110077
52-Week high 159.00
52-Week low 62.55
P/E
Mkt Cap.(Rs cr) 11,794
Buy Price 129.00
Buy Qty 2424.00
Sell Price 0.00
Sell Qty 0.00

Jindal Steel & Power Ltd. (JINDALSTEL) - Director Report

Company director report

Dear Members

Your Directors have pleasure in presenting the 37th Annual Report on the business andoperations of your Company along with the Audited Financial Statements for the FinancialYear ended March 31 2016.

FINANCIAL RESULTS

The financial performance of your Company for the Financial Year ended March 31 2016is summarised below:

Rs

Particulars Standalone Consolidated
Financial Year ended 31.03.2016 Financial Year ended 31.03.2015 Financial Year ended 31.03.2016 Financial Year ended 31.03.2015
Sales & other income 12852.46 13686.79 18632.26 19626.27
Profit before finance cost and depreciation 2481.31 4018.63 3633.03 5707.52
Profit/(Loss) before tax (1659.72) (639.41) (2674.93) (1542.75)
Less: Provision of Tax 640.84 (328.73) (676.30) (88.16)
Profit/(Loss) after tax (1018.88) (310.68) (1998.63) (1454.59)
Balance brought forward from previous year 9755.39 10385.18 16718.39 18501.07
Profit available forAppropriations 8736.51 10074.50 14816.38 17222.95
Appropriations:
Debenture Redemption Reserve 237.54 212.54 237.54 337.54
General Reserve - - 0.70 32.68
Other Reserves - 106.57 590.54 134.34
Surplus carried to Balance Sheet 8498.97 9755.39 13987.60 16718.39

MATERIAL CHANGES AFFECTING FINANCIAL POSITION

Your Board of Directors in its meetingheld on May 03 2016 subject to customaryregulatory approval and other condition precedents had approved the Divestment of 1000MWpower unit of the Subsidiary Company .e.JindalPowerLimitedlocatedin related party i.e. JSWEnergy Limited through a process of scheme or other mechanisms including transfer throughspecial purpose vehicle ("SPV") and thereafter sale of entire share capital andother securities of the said SPV in terms of Share Purchase Agreement for an enterprisevalue of Rs 6500 crore plus value of Net Current Assets as on the closing date. Thevaluation may vary based upon the achievement of Power Purchase Agreement(s) Fuelsourcing tie-ups as prescribed in the Agreement subject to the minimum of Rs 4000 croreplus value of Net Current Assets as on the closing date.

FINANCIAL HIGHLIGHTS

On standalone basis the total revenue (net of excise) was Rs 12852.46 crore as againstRs 13686.79 crore in the previous year showing a decline of 6.1%.

Sale of Steel products in the domestic as compared to 22.74 Lakh MT in the previousyear showing an increase of 20.3% and total export was 2.41 Lakh MT as compared to 4.50Lakh MT in the previous year showing a decrease of 46.4%.

Profit before tax (PBT) was Rs (-) 1659.72 crore as against Rs (-) 639.41 crore in theprevious year and profit after Rs (-) 1018.88 crore against Rs (-) 310.68 crore in theprevious year.

OPERATIONAL HIGHLIGHTS

Steel: Production of Finished Steel products during the year under review was 25.10Lakh MT as against 23.19 Lakh MT in the previous year whereas production of semi steelproducts was 34.82 Lakh MT as against 30.82 Lakh MT in the previous year.

Power: During the year under review 6870 million Kwh of power was generated asagainst 7340 million Kwh of power in the previous year.

Sponge Iron: Production of Sponge Iron during the year under review was 19.94 LakhMT as against previous year production of 16.61 Lakh MT.

Pellet: 45.89 Lakh MT of pellets were produced during the year under review asagainst 32.19 Lakh MT in the previous year.

Machinery: Machinery division in Raipur unit produced 1931 MT of castings and hasdone machining of 14088 MT as against 1832 MT previous year. and10592MT

Mining: The mining of calibrated iron ore at captive mine at Tensa in Odisha was6.22 Lakh MT as against previous year’s mining of 4.90 Lakh MT. stock yard.

The detailed discussions on the operations have been given elsewhere in the report.

PROJECTS COMPLETED

Steel Plant at Angul Odisha

Your Company has completed following operational facilities under Phase - I of 6 MTPAintegrated Steel Plant at Angul in the State of Odisha:

a) Steel Melting Shop: Your Company has implemented 250 T

Electric Arc Furnace which is one of the largest in India. This has doubled the Steelproduction in this Financial Year in comparison to the previous year.

b) Direct Reduced Iron Plant: 1.8 MTPA DRI Plant is a unique utiliz(Produced fromCoal) plantintheworldwhich and improved its operational efficiency through various drivesand hence doubled the production.

c) Plate Mill: Your Company has one of the widest plate mill (5mtrs. wide) plantwith 1.2 MTPA capacity and is producing different types of value added plates for sectorssuch as Defence Hydel Projects Oil Exploration etc.

These plants are supported by 810 MW Captive Power Plant (6x135 MW) Air SeparationUnit(2x1200 TPD) Lime Dolomite Plant (2x500 garh TPD) Coal Washery (6 MTPA) andProcess Boilers (3x1800 TPH).

Steel Plant at Raigarh Chhattisgarh

To enhance the plant’s productivity and output your Company has completed thefollowing new projects in Raigarh during the Financial Year under review:

1. Modification of EAF#01 of SMS-2 to NEOF which uses 85% HM and 15% DRI thusresultingin improved yield % and reduced conversion cost. The technology has been suppliedby Tenova SPA Italy.

2. Long Rail Welding facility at RUBM which is now welding 3 nos. of 87 Mtr Rails into260 Mtr panels. The Company has now started dispatch of 260 Mtr long rails to DFCC.

3. Upgradation of Plate Mill for improvement in productivity and quality of plates andcoils.

Pellet Plant at Barbil Odisha

Your Company has completed Rapid Loading System and FinesConveyingSystemfromwagontippler

Machinery Division at Raipur Chhattisgarh

Your Company has implemented following facilitiesduring the Financial Year underreview:

1. Installed CNC Oxyfuel Plate Cutting shop to enhance fabrication capability.

2. Automated Annealing furnace through new Proportional Integral Derivate (PID)Controller to increase the efficiency of the furnace.

3. Enhanced capacity of Quality Lab by procuring equipment such as Extensometer forUniversal Testing Machine Brinell Hardness Tester Notch Broching Machine and ProfileProjector to meet NABL requirements.

Shadeed Iron & Steel Oman

Shadeed Iron & Steel LLC Oman a Subsidiary Company has commissioned theworld’s largest and most modern state-of-the-art 1.4 MTPA Rebar Mill on January 172016 to supply finished steels the first time in its five-year-history with the imminentproduction of Rebar’s for the constructionindustry to cater mainly to domestic andMiddle East countries. The Steel-making and Rolling Complex was dedicated to the nation onMarch 20 2016.

PROJECTS UNDER IMPLEMENTATION

Chhattis SteelPlant Raigarh

Your Company has the following projects under implementation with a view to increasethe efficiency ofsteel plants at Raigarh:

1. Head hardened rails for high speed applications and Metro rails and exports.

2. Installation of new reheating furnace in Rail and Universal Beam Mill to increasethroughput.

3. Upgradation of Rail Finishing Facility at RUBM for Capacity and DispatchEnhancement.

Steel Plant (Phase 1B) at Angul in the state of Odisha

Your Company is expanding the steel plant (Phase 1B) at Angul at brisk pace from thepresent 1.5 MTPA to 5 MTPA through the conventional integrated steel plant route i.e CokeOven and ByProduct Plant Sinter Plant Blast Furnace Steel Melting Shop - II Bar Milland other allied units.

In Phase 1B units viz. Blast Furnace Coke Oven and By-Product Plant Sinter PlantSteel Melting Shop II; majority of civil work (~ 80%) has been completed. StructuralFabrication and Erection work is in progress and over 60% Fabrication and 50% Erection hasbeen completed. Equipment erection has also commenced. Your Company is expecting tocommission India’s biggest Blast Furnace (4554 cu.m) in the third quarter ofFinancial Year 2016-17.

The Bar Mill situated at Angul Odisha has been commissioned in first quarter of theFinancial Year 2016-17.

Machinery Division at Raipur Chhattisgarh

In order to enhance the capacity and productivity of the division your Company hasplanned the following additional equipment facilities:

1. Plate Bending Machine for higher thickness bending of Plates upto 120 mm (Thk) and4000 mm (Wid).

2. Plateshearingmachineforcutting SS Plates upto 6mm.

3. Upgradation of EOT Crane 25/08 MT in Machine shop (bay no 3).

4. Equipment for Machine shop and assembly shop like Milling Head for CNC floor typeBoring Machine (PAMA) In-situ Machine Induction heater for

5. New Pit Furnace for Hardening facility.

DIVIDEND

In view of the losses incurred during the FY 2015-16 your Board of Directors has notrecommended any Dividend.

During the year the unclaimed dividend of Rs 2584017/- (Rupees Twenty Five LakhEighty Four Thousand and Seventeen Only) pertaining to interim dividend of Financial Year2007-08 and Rs 4265953/- (Rupees Forty Two Lakh Sixty Five Thousand Nine Hundred andFifty Three Only) pertaining to final dividend of the Financial Year 2007-08 have beentransferred to the Investor Education and Protection Fund (IEPF) Government of India.The details including last date of claiming of unclaimed / unpaid dividend amount aregiven at the end of the Notice of the Annual General

CREDIT RATING

Your Company’s domestic credit rating is "D" (single D) for thelong-term debt/facilities/NCDs rated by Credit Analysis & Research Ltd. (CARE) CRISILand ICRA Limited. CARE CRISIL Ratings as well as ICRA Limited rated the Company’sshort term debt/facilities at the level of "D".

CONSOLIDATED FINANCIAL STATEMENTS

The Consolidated Financial Statements of your Company for the Financial Year 2015-16is prepared in compliance with the applicable provisions of the Companies Act 2013Accounting Standards and the Securities and Exchange Board of India (Listing Obligationsand Disclosure Requirements) Regulations 2015.

SHARE CAPITAL

The Authorised Share Capital of the Company is Rs 2000000000/- (Rupees Two Hundredcrore only) divided into 2000000000 (Two Hundred crore) equity shares of Rs 1/- (RupeeOne) each. The paid up equity share capital as on March 31 2016 was Rs 914903800/-(Rupees Ninety One crore Forty Nine Lakh Three Thousand and Eight Hundred only) comprising914903800 (Ninety One crore Forty Nine Lakh Three Thousand and Eight Hundred) equityshares of Rs 1/- (Rupee One) each.

Your Company has an Employee Share Purchase Scheme namely JSPL ESPS 2013. RelevantDisclosure pursuant to Securitiesand Exchange Board of India (Share Based EmployeeBenefits) Regulation 2014 are given as Annexure - E to this report.

NON-CONVERTIBLE DEBENTURES

The aggregate outstanding amount of Non-Convertible Debentures (NCDs) of the Company ason March 31 2016 was Rs 3912 crore. Out of Rs 3912 crore the NCDs amounting to Rs 300crore were redeemed on April 4 2016.

DEPOSITS

The Company has not accepted/received any deposits during the year under report fallingwithin the ambit of Section 73 of the Companies Act 2013 and the Companies (Acceptance ofDeposits) shrinkfitting. Rules 2014.

RELATED PARTY TRANSACTIONS

Particulars of contracts or arrangements entered into by the Company with the relatedparties referred to the Companies Act 2013 in prescribed Form AOC-2 is attachedherewith as Annexure - A to this Report.

All the related party transactions that were entered and executed during the year underreview were in the ordinary course of business and at arm’s length basis. As per theprovisions of Section 188 of the Companies Act 2013 and Rules made thereunder read withRegulation 23 of Securities and Exchange Board of India (Listing Obligations andDisclosure Requirements) Regulations 2015 your Company had obtained the prior approvalof the Audit Committee transactions. .

Moreover on the recommendations of the Audit Committee your Board had revised thePolicy on Related Party Transactions in accordance with Securitiesand Exchange Board ofIndia (Listing Obligations and Disclosure Requirements) Regulations 2015 and as per theamended provisions of the Companies Act 2013.

The policy is uploaded at the below web link:http://www.jindalsteelpower.com/img/admin/report/pdf/RPT_ Policy.pdf

PARTICULARS OF LOANS GUARANTEES OR INVESTMENTS

Details of Loans Guarantees Securities and Investments covered under the provisionsof Section 186 of the Companies Act 2013 are given in the Notes to Financial Statements.of

SUBSIDIARIES ASSOCIATES AND JOINT VENTURES

Your Company follows its global ambition to build a premium brand name for its qualitysteel solutions expertise and with a view of expansion and diversification it hascreated multiple subsidiaries domestic and abroad associates and joint ventures forfacilitating these operations in various countries. A separate statement containingsalient features of Financial Statements of Subsidiaries Associates and Joint Ventures ofyour Company forms part of Consolidated Financial Statements in terms of Section 129 ofthe Companies Act 2013.

The names of companies which have become or ceased to be its Subsidiaries AssociateCompanies or Joint Ventures are also disclosed in that statement.

The Financial Statements of Subsidiary Companies are kept open for inspection by theshareholders at the Registered Office your Company during business hours on all daysexcept Saturdays Sundays and public holidays upto the date of the Annual General Meeting(AGM) as required under Section 136 of the Companies Act 2013. Any member desirous ofobtaining a copy of the said Financial Statements may write to the Company at itsRegistered Office or Corporate Office. The Financial Statements including ConsolidatedFinancial Statements and all other documents required be attached to this Report have beenuploaded on the website of your Company viz. www.jindalsteelpower.com

Your Company has framed a policy for determining "Material Subsidiary" interms of Regulation Board of India (Listing Obligations and Disclosure Requirements)Regulation 2015. Jindal Power Limited is a material subsidiary of the Company in terms ofthe said policy. The Policy on Material Subsidiary has been uploaded on the Company’swebsite at the following link: http://www.jindalsteelpower.com/img/admin/report/pdf/Policy_on_determining_material_subsidiary.pdf

The details of business operations/performance of major subsidiaries are as below:

JINDAL POWER LIMITED

Jindal Power Limited a subsidiary company (JPL) is operating 2800 MW power plant atTamnar Chhattisgarh.

During the year under review 1000 MW (4x250 MW) power plant generated 5169 millionunits of power representing Plant Load Factor (PLF) as against 8113 million units ofpower representing 92.61% PLF in the previous year.

Commercial operation of first the 2400 MW (4x600 MW) thermal power project being setup in Tamnar Raigarh Chhattisgarh was declared in March 2014.

third unit of 600 MW of the 2400 MW Commercialoperation

(4x600 MW) thermal power project was declared on January 15 2015. With this theinstalled power generation capacity of JPL has increased to 2800 MW. During FinancialYear 2015-16 these units generated 4372 million units of power.

Jindal Power Limited (JPL) 258 km 400 kV double-circuit transmission line is beingused as an interstate transmission line belonging to the Western Region InterstateTransmission System. The Central Electricity Regulatory Commission (CERC) has granted atransmission license to the Company for carrying on business activity and has fixedprovisional tariff for its use. During the year under review JPL has earned transmissionincome of Rs 45.44 crore from this line.

During the year under review JPL has recorded total revenue of Rs 3513.19 crore andthe loss after tax was Rs 102.49 crore. of

SHADEED IRON & STEEL LLC OMAN

Shadeed Iron & Steel LLC Oman a subsidiary of Jindal Steel & Power Ltd. isoperating 1.5 MTPA or Brigutted Iron plant and Steel melt shop. It has recorded sales ofRs 2815.77 crore in the Financial Year 2015-16 and earned a profit after tax of the Rs6.18 crore.

JINDAL MINING SA (PTY) LIMITED SOUTH AFRICA

The operating coal mine recorded sales ofRs 110.69 crore in Financial Year2015-16 and incurred a loss of Rs 39.64 crore.

JSPL MOZAMBIQUE MINERALS LDA MOZAMBIQUE

The operatingcoal mine recorded sales of Rs 10.60 crore in Financial Year 2015-16 andincurred a loss of Rs 267.07 crore.

WOLLONGONG COAL LIMITED (FORMERLY GUJARAT NRE COKING COAL AUSTRALIA LIMITED)

The operating coal mine recorded sales ofRs 37.02 crore in Financial Year 2015-16 andincurred a loss of Rs 420.50 crore.

With a view to ensure availability of coal and other raw materials the Company hasthrough its other subsidiaries acquired exploration/ mining interests in BotswanaIndonesia Madagascar Namibia Liberia Mauritania Zambia and Tanzania.

DIRECTORS AND KEY MANAGERIAL PERSONNEL

Appointment

During the period under review Mr. Rajeev Rupendra Bhadauria was appointed as anAdditionalDirector and Whole-time Director by the Board of Directors in its meetingheldonMay272015.Subsequently ees of the Board of Directors. the Shareholders of theCompany in the Annual General Meeting held on Septemberee Committ 18 2015 approved theappointment of Director Mr. Rajeev Rupendra BhadauriaasDirectorandWhole-time emunerationCommittee of the Company. mittee

Key Managerial Personnel

Mr. Naveen Jindal Chairman Mr. Ravi Kant Uppal Managing Director & Group CEOMr. Rajeev Rupendra Bhadauria Whole-time Director Mr. Dinesh Kumar Saraogi Whole-timeDirector Mr. Kannabiran Rajagopal Group Chief Financial Officer and Mr. Jagdish PatraVice President & Group Company Secretary are the Key Managerial Personnel of yourCompany in accordance with the provisions of Sections 2(51) and 203 of the Companies 2013read with Companies (Appointment and Remuneration of Managerial Personnel) Rules 2014.

During the year under review Mr. Harish Dua was appointed as the Acting ChiefFinancial Officer November 30 2015. Mr. Kannabiran Rajagopal has been appointed as GroupChief Financial

Resignation

Mr. Harish Dua resigned from the position of Acting Chief Financial Officerw.e.f.November 30 2015 Mr. Ratan Jindal resigned the position of Non-Executive Director of theCompany w.e.f. 30 2016 and Mr. Chandan Roy has resigned from the position of IndependentDirector of the Company w.e.f. June 07 2016.

Your Directors would like to record their deep sense of appreciation for the enormouscontributionsmade by them during their

Retirement by Rotation

In accordance with the provisions of Section 152 of the Companies Act 2013 and interms of the Articles of Association Ms. Shallu Jindal Non-Executive Director and Mr.Dinesh Kumar Saraogi Whole-time Director are liable to retire by rotation at the ensuingAnnual General Meeting and being eligible seek re-appointment. Your Board of Directorsrecommends their reappointment.

BOARD EVALUATION

The Companies Act 2013 mandates formal annual evaluation by the Board of its ownperformance and that of its committees and Individual Directors. Schedule IV to theCompanies Act 2013 provides that the performance evaluation of Independent Directorsshall be done by the entire Board of Directors excluding the Directors being evaluated.

Pursuant to the provisions of the Companies Act 2013 and Securities and Exchange Boardof India (Listing Obligations and Disclosure Requirements) Regulations 2015 the Boardhas carried out annual evaluation of performance of Directors individually Board as awholeandfollowing

i) Audit

ii) Nominationand

iii) HealthSafetyCSRandEnvironmentCommittee

iv) Stakeholders’Relationship

v) Risk Management Committee and

vi) Investment Committee

The manner in which the evaluationhas been carried out is explained in the CorporateGovernance Report. The Board approved the Committ.evaluation made by the Nomination andRemuneration

SEPARATE MEETING OF INDEPENDENT DIRECTORS

In term of requirements of Schedule IV of the Companies Act 2013 and Regulation 25 ofSecurities and Exchange Board of India (Listing Obligations and Disclosure Requirements)Regulations 2015 a separate meeting of the Independent Directors was held on March 252016 for the Financial Year 2015-16. oftheCompany from April 01 2015 till

The Independent Directors at the meeting reviewed the following: a. Performanceof Non-Independent Directors and the Board as a whole;

b. Performance of the Chairman of the Company taking into e ExecutivaccounttheviewsofExecutiveDirectorsandNon-Directors; and

c. Assess the quality quantity and timeliness of flow of information between theCompany Management and the Board that is necessary for the Board to effectively andreasonably perform their duties. .

MEETINGS OF THE BOARD AND COMMITTEES

The details meetings of the Board and various the number Committees of your Company areset out inof the Company Corporate Governance Report which forms part of this Report. Theintervening gap between the meetings was within the period prescribed under the CompaniesAct 2013 and Securities and Exchange Board of India (Listing Obligationsand DisclosureRequirements) Regulations 2015.

DECLARATION BY INDEPENDENT DIRECTORS

Your Company has received necessary declarations Independent Director that he/she meetsthe criteria of independence as laid down under the Companies Act 2013 read with ScheduleIV and Rules made thereunder as well as Securities and Exchange Board of India (ListingObligations and Disclosure Requirements) Regulations 2015. The Board considered theindependence of each of the Independent Directors in terms of the above provisions and isof the view that they fulfil/meet the criteria of independence.

REMUNERATION POLICY

In accordance with the provisions of Section 178 of the Companies Act 2013 read withRules made thereunder and Securities and Exchange Board of India (Listing Obligations andDisclosure Requirements) Regulations 2015 the Company’s policy on Nomination andRemuneration of Directors t may be decided byKMPs and Senior Management of your Companyis uploaded on website of the Company: http://www.jindalsteelpower.com/img/admin/report/pdf/Remuneration_Policy.pdf.

Remuneration of Directors Key Managerial Personnel and Particulars of

The informationrequired to be disclosed in the Board’s Report pursuant to Section197 of 5 of the Companies (Appointment and Remuneration of Managerial Personnel) Rules2014 is being sent to the members and others entitled thereto both electronically whohave registered their email address with the Company and physically to those who have notregistered their email address with the Company.

Members and other entitled persons who have not registered their e-mail address withthe Company may access the full version of the Annual Report on the website of the Companyor by physically inspectingthe full version of the Annual Report at the Registered officeor Corporate office of the Company on all working days the Company between 10.00 am and1.00 pm or by requesting a physical copy by writing to the Company Secretary. disclosureis also set out in Annexure-B to this report.

STATUTORY AUDITORS

M/S S.R.Batliboi & Co. LLP Chartered Accountants (Firm Regn. No. 301003E)Statutory Auditors of the Company have shown their inability for their re-appointment asthe Auditors of the Company and therefore resigned upon the conclusion of the ensuingAnnual General Meeting.

The Company has received a Special Notice under Section 140 (4) read with Section 115of the Companies Act 2013 from M/s Opelina Finance and Investment Limited in the capacityof a member of the Company proposing a resolutionat the ensuing Annual General Meeting forappointment of M/s Lodha & Co. Chartered Accountants (ICAI Firm Registration No.301051E) as Statutory Auditors in place of M/s S. R. Batliboi & Co. LLP CharteredAccountants. M/s Lodha & Co. Chartered Accountants have agreed to and given theirconsent for their appointment as the Statutory Auditors of the Company. M/s S. R. Batliboi& Co. LLP Chartered Accountants have maintained the highest level of governance andsubstantially contributed to the efforts of the Company towards strengthening the internalcontrols processes and procedures in line with expanding size of operations. The Boardplaces on record its deep sense of appreciation for the services rendered and guidancegiven by them as the Statutory Auditors of the Company. In terms of Section 139(2) of theCompanies Act 2013 the Board has recommended the appointment of M/s Lodha & Co.Chartered Accountants as the Statutory Auditors of the Company for a period of fiveconsecutive years from the conclusion of the Thirty Seventh Annual General Meeting up tothe conclusion of the Forty Second Annual General Meeting subject to ratification at eachAnnual General Meeting at shareholders. remuneration Comments/Qualifications of theAuditors in their report and the notes forming part of the Accounts are self-explanatory.Management representations to these qualifications/comments are as follows:

A. During the previous year the Hon’ble Supreme Court vide itsCompaniesAct2013readwithRule judgement dated August 25 2014 read with its orderdated September 24 2014 had cancelled the allocation of certain Coal Blocks which wereallotted from year 1993 onwards through Screening directed the Coal block allottees to payan additional levy of Rs 295 per MT on the coal extracted from the operational mines. Thereview petition filed by the Company and its subsidiary company JPL before theHon’ble Supreme Court of India against the order challenging cancellation of coalblocks and imposing additional levyof Rs 295 per MT on coal extracted with retrospectiveeffect is still pending.

In the meanwhile the Company has paid Rs 3267.43 crore The aforesaid (including Rs1185.20 crore paid by its subsidiary company JPL) under protest on the Run of Mine coalextracted from the operational mines from the commencement of coal mining in the year 1993to September 30 2014. Out of the said amount on the basis of the legal advice obtainedby the Company that additional levy of Rs 295 per MT is payable only on coal extracted andis not payable on shale rejects and ungraded middlings an amount of Rs 1911.64 crore(including Rs 1103.87 crore related to its subsidiary company JPL) computed on coalextracted excluding shale rejects and ungraded middling has been shown an exceptionalitem in the Statement of Profit and Loss. The balance amount of Rs 1355.79 crore(including Rs 81.33 crore related to its subsidiary company JPL) being additionallevy ofRs 295 per MT on shale rejects and ungraded middlings has accordingly been shown asrecoverable. On the same principle the Company has accrued additional levy of Rs178.18 crore (including Rs 85.78 crore payable by its subsidiary company JPL) based oncoal extracted excluding shale rejects and ungraded middling from October 1 2014 to June30 2015.

The Board of the Company based on the legal advice is sanguine of obtainingappropriate relief in respect of the same.

B. The Board is of the view that as of now there is no requirement for adjustment tothe carrying value of investment made in mining assets by the Company and difference ifany shall be accounted for when the matter is finally settled.

COST AUDITORS

Your Board on the recommendation of the Audit Committee appointed M/s Ramanath Iyer& Co.(FRN00019)CostAccountants activities for the Financial Year 2015-16 as forauditingthe cost records of the Company for the Financial Year 2016-17.

In terms of Section 148 of the Companies Act 2013 read with the Companies (Audit andAuditors) Rules 2014 appropriate resolution seeking your ratification of the remunerationof M/s Ramanath & Co. (FRN 00019) Cost Accountants is included in the Noticeconvening the 37th AGM of theCompany. ant material orders passed by the

SECRETARIAL AUDITORS

Your Board on the recommendation of the Audit Committee appointed M/s MZ &Associates Company Secretaries to conduct the Secretarial Audit of your Company for theFinancial Year 2015-16. The Secretarial Audit Report is annexed herewith as Annexure - Cto this Report. The Secretarial Audit Report does not contain any qualificationreservation or adverse Directors has appointed M/s RSMV & Co. Company Secretaries forthe Financial Year 2016-17 to conduct the Secretarial Audit of the Company.

RISK MANAGEMENT

The Company has in place a robust risk management framework which identifies andevaluates business risks and opportunities The Company recognises that these risks need tobe managed and mitigated to protect the interest of the shareholders and stakeholders toachievebusinessobjectives and enable sustainable growth. The risk management framework isaimed at effectively mitigating the Company’s various business and operationalthrough strategic actions.Risk management is embedded in our critical and processes. Therisks business activities are reviewed for change in the nature and extent of the majorrisks identified since the last measures for risk and future action plans.

Pursuant to the provisions of the Companies Act 2013 and Securities and Exchange Boardof India (Listing Obligations Disclosure Requirements) Regulations 2015 the Company hasa Risk Management CommitteeoftheBoardwhichlooksafter the identification of risks andtheir mitigation planning. More about this Committee and its role and responsibilities aregivenin of total 59 the Corporate Governance Report.

INTERNAL FINANCIAL CONTROLS

The Company has in place adequate Internal Financial Controls with reference tofinancial statements. During the year were tested and no reportable material weakness inthe design or operations were observed. The report on the Internal Financial Controlissued by M/s S. R. Batliboi & Co. LLP Chartered Accountants the Statutory Auditorsof the Company in view of the provisions under the Companies Act 2013 is given elsewherein this report.

CORPORATE SOCIAL RESPONSIBILITY (CSR)

The Annual Report on the Corporate Social Responsibility (CSR) required under Sections134 and 135 of the Companies Act 2013 read with Rule 8 of the Companies (Corporate SocialResponsibility Policy) Rules 2014 and Rule 9 of the Companies (Accounts) Rules 2014 isattached to this Report as Annexure - D.

SIGNIFICANT AND MATERIAL ORDERS PASSED BY THE REGULATORS OR COURTS

Courts which would impact the going concern status of the Company and its futureoperation during the year under review except the following significant orders passed bythe Regulators/courts in previous year.

De-Allocation of Coal Blocks

Following the petition by M L Sharma vs The Principal Secretary & Ors.Your andsubsequent other Writs the Hon’ble Supreme Court of Board of India vide itsjudgement dated August 25 2014 read with its order dated September 24 2014 had cancelledthe allocation of Coal Blocks those were allotted from 1993 onwards through ScreeningCommittee. Following the order of the Hon’ble Supreme Court the Central Governmenthad promulgated The Coal Mines (Special Provisions) Ordinance 2014 [now an Act]conferring power upon .the Government to auction the Coal Blocks falling into Scheduleconsisting of 204 Coal Blocks as mentioned in the said Act.

Subsequently the Government proceeded with the auction of Coal Blocks falling underSchedule II consisting of total 42 Coal Blocks and as notified through circular ofMinistry of Coal. The sale of tender document took place from December 27 2014 andCompany and its subsidiary Jindal Power Limited (JPL) participated in the said auctionprocess where the Electronic Bidding commenced from February 14 2015 and ended onFebruary 22 2015 in which JPL won Gare Palma .Italsoprovidescontrol IV/2 & IV/3 CoalBlock. Likewise after going through all procedural formalitiesas mentioned in the TenderDocument and as prescribed in The Coal Mines (Special Provision) Ordinance JPL made thewinning bid for Tara Coal Block and the result was declared via MSTC web-site (the CoalBlock Auction Platform).

Similarly the tender document sale of Schedule-III Coal Blocks Coal Blocks started onJanuary 7 2015 and the consisting Electronic Auction took place from March 4 2015 toMarch 9 2015 consisting of only 13 coal blocks in the 1st phase. The Company and JPLparticipated in the said auction process.

However on March 20 2015 JPL received a letter via E-mail from the office ofNominated Authority wherein it was conveyed that JPL was not declared successful bidderfor Gare IV/2 and IV/3 and Tara Coal Block on the ground that the highest bidder does notreflect fair value which has been challenged in Hon’ble High Court of Delhi and thematter is sub-judice.

Despite the aforesaid challenges faced by the Company during the previous year yourCompany is fully geared to cater to the coal requirement of its entire planned generationthrough Coal Linkage and e-auctionetc. The Board of the Company is sanguine about winningmore Coal Blocks whichareplannedtobeauctionedin the subsequent rounds.

DIRECTORS’ RESPONSIBILITY STATEMENT

Pursuant to Section 134(3) (c) of the Companies Act 2013 the Directors state: (a)that in the preparation of the annual accounts for the year ended March 31 2016 theapplicable accounting standards and Schedule III to the Companies Act 2013 have beenfollowed and there are no material departures from the same;

(b) that the Directors has selected such accounting policies and applied themconsistently and made judgements and estimates that are reasonable and prudent so as togive a true and fair view of the state of affairs of your Company as at March 31 2016 andof the loss of the Company for the year ended on that date;

(c) that proper and sufficient care has been taken for the maintenance of adequateaccounting records in accordance with the provisions of Companies Act 2013 forsafeguarding the assets of your Company and for preventing and detecting fraudandother

(d) that the annual accounts have been prepared on a going concern basis;

(e) that proper Internal Financial Controls laid down by the Directors were followed bythe Company and that such Internal Financial Controls are adequate and were operatingeffectively; and

(f) that proper systems to ensure compliance with the provisions of all applicable lawswere in place and that such systems were adequateandoperating

OTHER INFORMATION

Business Responsibility Report

As stipulated under the Securities and Exchange Board of India (Listing Obligations andDisclosure Requirements) Regulations 2015 Business Responsibility Report describing theinitiatives taken by Company from environmental social and governance perspective isattached as a part of the Annual Report.

Management Discussion and Analysis Report

Management Discussion and Analysis Report for the year under review as stipulatedunder Securities and Exchange Board of India (Listing Obligations and DisclosureRequirements) Regulations 2015 is annexed herewith as Annexure -F to this Report.

Conservation

Exchange Earnings and Outgo

The information on conservation of energy technology absorption and foreign exchangeearnings and outgo as 134(3)(m) read with Rule 8 of the Companies (Accounts) Rules 2014is annexed herewith as Annexure - G to this Report.

Certificate on Corporate Governance

The Company is committed to maintain the highest standards Corporate Governance andadhere to the Corporate Governance requirements set out by Securitiesand Exchange Board ofIndia. The Company has also implemented several best Corporate Governance practices asprevalent globally. The report on Corporate Governance as stipulated under the Securitiesand Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations2015 forms an integral part of this Report. The requisite from M/s RSMV & Co. CompanySecretaries in practice compliance with the conditions of Corporate Governance is annexedherewith as Annexure -I to this Report.

Whistle Blower and Vigil Mechanism

Your Company has formulated a vigil mechanism in place namely Group Whistle BlowerPolicy (GWB) to deal with instances of unethical behaviour actual or suspected fraud orviolation of Company’s code of conduct or ethics policy. The details of policy isexplained in Corporate Governance Report and also uploaded on Company’s website underthe web link: http://www.jindalsteelpower.com/img/ admin/report/pdf/whistle.pdf

Prevention Sexual Harassment at Workplace of

As per the requirement of the Sexual Harassment of Women at Workplace (Prevention theRules made thereunderyourCompanyhasconstituted Internal Complaints Committee havingdesignated independent member(s) to redress complaints regarding sexual harassments.During the year no complaint regarding sexual harassment has been reported.

Listing

The Securities and Exchange Board of India (SEBI) vide their notification datedSeptember 02 2015 issued SEBI (Listing Obligations and Disclosures Requirements)Regulations 2015 with the aim to consolidate and streamline the provisions of ListingAgreement for different segments of Capital Markets to ensure better enforceability. Thesaid regulations were effective from December 01 2015. Accordingly all listed entitieswere required to enter into the Listing Agreement within six months from the effectivedate. The Company entered into Listing Agreement with BSE Limited and National StockExchange of India Limited in the month of January.

Both these Stock Exchanges have nationwide terminals and thereforeshareholders/Investorsarenotfacinganydifficultyin trading in the shares of the Companyfrom any part of the country. The Company has paid annual listing fee for the FinancialYear 2016-17 to the BSE Ltd. and the National Stock Exchange of India Ltd.

Extract of the Annual Return

The details forming part of the extract of the Annual Return in Form No. MGT 9 inaccordance with the provisions of Section 92 of the Companies Act 2013 read with theCompanies (Management and Administration) Rules 2014 are set out herewith as Annexure -H to this Report.

CAUTIONARY STATEMENT

Statements in the Board’s Report and the Management Discussion & AnalysisReport describing the Company’s objectives expectations or forecasts may beforward-looking within the meaning of applicable Securities Laws and Regulations. Actualresults may differ materially from those expressed in the statement. Important factorsthat could influence the Company’s operations include global and domestic demand andsupply conditions finished goods input availability and prices changes in GovernmentRegulationstax laws economic developments within the country and other factors such aslitigation and industrial relations.

ACKNOWLEDGEMENTS

Your Company’s organisational culture upholds professionalism integrity andcontinuousimprovement across all functions as well as efficient utilisation of theCompany’s resources for sustainable and profitable growth.

The Directors wish to place on record their appreciation for the sincere servicesrendered by employees of the Company at all levels. Your Directors also wish to place onrecord their appreciation for the valuable co-operation and support received from theGovernment of India various State Governments the Banks/Financial Institutions and otherstakeholders such as shareholders customers and suppliers among others. The Directorsalso commend the continuing commitment and dedication of the employees at all levelswhich has been sellingpricesof critical for the Company’s success. The Directors lookforward to their continued support in future.

For and on behalf of the Board of Directors
Naveen Jindal
Place: New Delhi Chairman
Dated : June 21 2016 DIN : 00001523

ANNEXURE - A

Form No AOC-2

(Pursuant to clause (h) of sub-section (3) of section 134 of the Act and Rule 8(2) ofthe Companies

Form for disclosure of particulars of contracts/arrangements entered into by thecompany with related parties referred to in sub-section(1) certain arm’s lengthofsection 188of the CompaniesAct 2013 including transactions under third proviso thereto

1. Details of contracts or arrangements or transactions not at arm’s length basis Not applicable
2. Details of material contracts or arrangement length basis ortransactions
a) Name(s) of the related party and nature of relationship Jindal Power Limited (JPL) Material Subsidiary Company
b) Nature of contracts / arrangements / transactions Memorandum of Understanding dated November 16 2015 as amended from time to time
c) Duration of the contracts / arrangements/transactions Business Transfer Agreement (BTA) to be executed upon receiving of the Shareholders approval through Postal Ballot.
d) Salient terms of the contracts or arrangements or transactions including the value if any: Sale of Captive Power Plants(CPP) aggregating to 920 MW capacity (i.e. 810 MW (6x135) Captive Power Plant located at Angul Odisha and 110MW (2x55) Captive Power Plant located at Raigarh Chhattisgarh) to JPL wherein JSPL owns 96.43% shareholding at a fair market value determined by an Independent valuer appointed by the Board. Value of transaction
e) Date(s) of approval by the Board if any: November 14 2015
f) Amount paid as advances if any: Rs 2658 crore

 

For and on behalf of the Board of Directors
Naveen Jindal
Place: New Delhi Chairman
Dated : June 21 2016 DIN : 00001523

ANNEXURE - B

Details pertaining to Remuneration as required under Section 197(12) of theCompaniesread with Rule 5(1) of Act 2013 the Companies (Appointment and Remuneration ofManagerial Personnel) Rules 2014

(i) Ratio of the remuneration of each Director to the median remuneration 2015-16 thepercentage increase in remuneration of Chief Executive Officer Chief Financial Officerother Company Secretary during the Financial Year 2015-16:

Name of Director/KMP and Designation Remuneration of Director/KMP for Financial Year 2015-16 (Rs in Lakhs) % increase in Remuneration in FY 2015-16* Ratio of Remuneration of Director to Median Remuneration of employees Comparison of Remuneration of KMP against the performance of the Company
1 Mr. Naveen Jindal Chairman 1317.20 - 216.64
2 Mr. Ravi Uppal Managing Director & Group CEO 707.51 - 116.37 During the year under review the Company has paid the remuneration to the KMPs aggregating to Rs 2525.84 lakhs comprising 0.20% of the total revenue.
3 Mr. K. Rajagopal Group CFO# 30.77 - N.A.
4 Mr. Rajeev Bhadauria Wholetime Director# 213.98 - 35.19
5 Mr. Dinesh Kumar Saraogi Wholetime Director 133.67 - 21.99
6 Mr. Harish Dua Acting CFO** 63.74 - N.A.
7 Mr. Jagdish Patra Vice President & Group Company Secretary 58.97 - N.A.

# Mr. Rajeev Bhadauria and Mr. K Rajagopal have been appointed as Wholetime Directorand Group Chief Financial Officer w.e.f. May 27 2015 and February 13 2016 respectively.Remuneration details of Mr. Rajeev Bhadauria Wholetime Director includes remunerationpaid during April 01 2015 to May 26 2015.

* Disclosures with respect to percentage increase in remuneration have not been madedue to following reasons: - there is no increase in remuneration of Mr. Naveen JindalChairman Mr. Ravi Uppal Managing Director & Group CEO Mr. Dinesh Kumar SaraogiWholetime Director and Mr. Jagdish Patra VP & Group Company Secretary of the Companyduring the Financial Year 2015-16.

** Mr. Harish Dua has resigned as Acting CFO w.e.f. November 30 2015.

(ii) The number of permanent employees as on March 31 2016 was 6842 and the medianremuneration wasRs 6.08 Lakhs. Average of remuneration of employees excluding aboveDirectors and KMPs has increased by 7% as the Company had set an aggressive businesstargets and expansions for the year ahead. The average increase was also in line with theprojected increase approx. 10.4% average increase in salaries acrossengineering/manufacturing organizations.

(iii) The remuneration of Directors KMPs and other employees is in accordance with theRemuneration Policy of the Company provided under the section "Corporate Governancewhich forms part of the Board Report.

(iv) No employee’s remuneration for the year 2015-16 exceeded the remuneration ofany of the Directors except the details of employees forming part of this annexure.

(v) Company’s performance has been provided in the Board Report which forms partof the Annual Report.

(vi) Market Capitalisation wasRs 5512.29 crore and PE ratio as at March 31 2016 asagainst Rs 14345.69 crore and PE ratio (46.12) as at March 31 2015. Report"

(vii) The key parameter for the variable component of remuneration in case of Chairmanis linked with Company performance. In case of other key managerial personnel(s) the sameis linked with Company performance and Individual performance.

Statement Containing the particulars of employees in accordance with Section 197 of theCompanies Act 2013 read with Rule 5 of the Companies (Appointment and Remuneration ofManagerial Personnel) Rules 2014 and forming part of Board Report for the Financial Yearended March 31 2016

Employed throughout the year and were in receipt of remuneration of not less thanRs6000000 per annum

Name Age (in Years) Designation Remuneration (in Rs ) Qualification Date of commencement of Employment Total Experience (No. of Years) Previous Employment Designation
1 Rakesh Kumar 54 Executive Director 12539640 BA CA-Final. 01-03-1989 27 Delux Fabrics Pvt. Ltd. Account Manager
2 Damodar Mittal 49 Executive Vice President 8745201 B.E / Mechanical 30-06-1989 31 Jindal Strips Ltd. -
3 Rohit Choudhri 47 Vice President 6842897 PG Foreign Trade Master Mgt Studies 16-06-2008 25 Concept Hr Director
4 Neeraj Agrawal 44 Associate Vice President 6302412 B.E. (Mech) 15-09-2007 23 Kone Elevetors India Pvt. Ltd. Business Manager
5 Ajay Sehgal 47 Associate Vice President 8611928 CA CS B.Com 08-12-2007 27 Samtel Color Ltd. Director-Finance
6 Anand Goel 63 Chief Advisor 22984469 B.Com 01-09-1976 40 - -
7 Rajesh Bhatia 49 CEO-Global Ventures 20742328 B Com CA 29-04-2008 28 Oswal Chemicals & Fertilisers Director-Finance
8 Anand Prakash 52 Associate Vice President 6249089 BE 22-03-2010 29 Adhunik Steel Ltd Vice President
9 Deb Prasad Ghosh 60 Executive Vice President 8674722 B.E.(Mettalurgy) M.Tech. 27-05-2010 33 T S P D L Faridabad General Manager
10 Vijay Kumar Chama 58 Executive Vice President 6907683 B. Sc. MBA 21-06-2010 36 Jaypee Spa Infocom Sr. Vp- Marketing
11 Kapil Rawat 55 Executive Director 9058028 BE (Civil) 04-08-2010 31 "Words Window International & Logistics Pvt Ltd" President
12 Hervinder Singh 55 Executive Vice President 8034870 BE Mining 27-12-2010 34 Essar GM-EMRL
13 Mariam J Carter 56 General Manager 9581824 MBA M.A. 11-07-2011 - - -
14 Susheel Kumar Mehrotra 52 Executive Vice President 7391723 B.Com HonsCA 09-08-2011 30 Dharampur Sugar Mills Financial Controller
15 Hemant Kumar 48 Executive Vice President 8786147 B.Com Hons ICWA CA 20-08-2010 28 Omaxe India President-Finnace
16 Valluri Venkata Madhava Ram 56 Executive Vice President 7224305 B.E. Mechanical 07-10-2011 27 KSS/ Kazohoy Srevice Project Director
17 Manish Kharbanda 46 Executive Director 13551780 MBA-HR M.SC. Geology LLB 30-09-2011 24 MTS Head HR
18 Virendra Kumar Mehta 64 Director-Sales & Marketing 14015496 B.Sc. Hons MA (Eco) 01-12-2011 41 SAIL Executive Director
19 Suresha G 45 Vice President 6261824 B.E-Electronics & Telecommunication MBA-Operation Management 06-07-2012 20 Crest Steel And Pvt. Ltd. Vice President
20 Samar Suri 46 Executive Vice President 6768332 B.E (Metallurgy) 28-01-2013 25 Kalyani Steels Ltd Sr. VP
21 Nirmalendu Purohit 50 President 8404488 B.Tech. (Metallurgy) 16-04-2013 22 Hospet Steels Chief Operating Officer.
22 Peter Johannes Erasmus 65 General Manager 9864802 Project Manager Technical Certificate N3 & N4 (Fitter & Turner) 28-05-2013 43 Durab Engineering Engineering Manager
23 Kapil Dhagat 54 Executive Vice President 6726400 B Tech Mining 10-07-2013 29 Bhushan Steel Limited Sr. General Manager
24 Subrahmanya Shanbhogue Tantradi 56 Executive Vice President 6158115 B.E. Mechanical 09-08-2013 34 ESSAR Vice President
25 Anand Mohan Shukla 53 Executive Vice President 9150584 PG Diploma(Personal Mgmg & Human Resorce) & B.Com. 13-09-2013 29 Dodsal Group Global Director.
26 Parikshit Oberai 45 Vice President 6192649 B. Com CWA 22-10-2013 21 ACC Limited Vice President
27 Ashish Jasoria 47 Vice President 7938940 B Com (H) ICAI ICWAI 17-12-2013 16 MCCS VPCFO
28 Ashish Aggarwal 36 General Manager 6122327 B.Com Chartered Accountant 04-03-2014 15 ICICI Bank AGM
29 Pankaj Gautam 63 Executive Director 13899747 BE Electrical PGDBM- Business Managemnt 03-03-2014 42 Visa Steel Limited JMD & CEO
30 Gaurav Wahi 43 Vice President 6598460 B.E. (Mech.) P.G.D.B.M. (Corporate Communications) 23-04-2014 19 PE Cube Partner
31 Miniya Chatterji 37 Vice President 6166723 Phd Pol Sc. Masters-Int'l Studies BA-French Lit. 16-06-2014 16 World Economic Forum Senior Manager
32 John McLennan 57 Assistant Gen Manager 7761992 Level 4 - 2002 19-06-2014 38 Sasol Level 4 SPC
33 Sandeep Kumar Singhal 59 Executive Vice President 7134372 B.Tech.(Mech.Engg.)PG Diploma(Operation & Finance Mgmt.) 13-08-2014 35 Monnet Ispat & Energy Ltd Chief Commercial Officer
34 Vipul Anand 48 Executive Vice President 6982453 BE-Computer Engg. 01-10-2014 26 Aditya Birla Group VP-IT
35 Bharat Rohra 59 President 10897800 B. Tech. (Civil Engineering) 01-03-2015 36 Universal Infra Sr. V.P.
36 Ranjit Budhai 57 Executive Vice President 23769065 MBA 12-03-2015 35 Sasol Synfuels Sr. Manager

Employed part of the year and were in receipt of remuneration of not less thanRs500000 per month

Name Age (in Years) Designation Remuneration (in Rs ) Qualification Date of commencement of Employment Total Experience (No. of Years) Previous Employment Designation
1 Nasir Ahmed 43 Associate Vice President 928941 Bcom & LLB 27-01-2014 18 Bharat Aluminium Company Ltd. General Manager
2 Naresh Pattanaik 45 Sr Dy Gen 802762 - 01-05-2012 - - -
Manager
3 V Karthikeyan 51 General Manager 1171079 M.Sc. 17-03-2004 24 Bata India Ltd. -
4 Moreshwar G Borkar 44 General Manager 643676 B.E. 16-10-2012 22 Welspun Corp Ltd. GM
5 Susanta Kumar Pattnaik 50 Dy General Manager 587465 - 19-02-2013 29 AIG -
6 Seelam Vasudev Rao 59 Executive Director 4434358 BE-Mech M.Tech 16-01-2012 35 Kirbi Building Systems Managing Director
7 Debasis Maiti 42 Dy General Manager 661558 B.E. 23-08-2011 20 Ingenero Specialist
8 Saroj Kumar Mahapatra 55 Vice President 1915404 Ph.D. - HR Planning 18-04-2011 34 Posco India AVP
9 Ravindra Kumar Khaitan 59 General Manager 808932 Bcom & LLB 01-04-2011 12 Hscci India Architecture
10 Manoj Kumar Singh 52 General Manager 1207949 ME 18-03-1996 28 Tata Iron & Steel Co. -
11 Maneesh Shankar Mathur 47 Dy General Manager 741807 Intermediate 20-07-2011 21 Yansa B Process Trainer
12 Sudip Kumar Dwivedi 42 Dy General Manager 770853 M.Sc. 03-09-2001 26 Parinika Harvest Floratech Ltd. -
13 Saroj Kumar Jain 61 Executive Director 3445861 Industrial Engg Grad- Metallurgy Engg PG Dip Mgt 22-05-2009 39 Essar Steel Limited VP-Projects & Technology
14 Parveen Brar 53 General Manager 1888213 B.Sc. 08-08-2011 32 Jayasl Neco GM
15 Randeep Bhardwaj 44 Senior Manager 1265369 BA 19-07-2010 10 Barclay’s Shared Services Manager
16 Karuna Mahajan 36 Assistant Gen Manager 1166193 PG Diploma in Management 26-12-2014 9 Usha International Ltd. Department Manager
17 Gopal Singh Rathore 54 Associate Vice President 1442311 Bcom & CA Final 09-08-2010 29 JSIS. Oman Sr. Genaral Manager
18 Arshad Mohammed Sayed 54 Associate Vice President 1495342 B.Sc (Engg.) / Mechanical 31-08-2010 30 Indalco Industries Ltd. -
19 KrishnaKumar YV 44 Vice President 2061701 B.Tech. (Operation & Research)PG Diploma in Management(Operation) 27-11-2014 22 Binani Cement Limited Vice President - Strategy
20 Parminder Singh Jassal 55 Executive Vice President 5716365 B.Com LLB 22-04-2011 35 Bhatia Interntional Sr. VP-Corporate Affairs
21 Hari Easwaran 56 Associate Vice President 2731283 BSc. Physics B.Tech 16-07-2013 34 Punj Lloyd Ltd Sr. General Manager
22 Kumar Manish 48 General Manager 2592372 MA M.Phil 01-11-2014 23 Bahwan Building Materials LLC Head Steel & Basic Materials
23 Nicolaas Jacobus Brand 49 Assistant Gen Manager 3230425 - 14-05-2012 - Siq Survey -
24 Mias Oliver 49 Assistant Gen Manager 3727965 - 14-05-2012 - Sasol Technologies -
25 Velidi Shiva Kumar 42 General Manager 2852046 BE 01-01-2007 14 Hari Machines Ltd -
26 Prakash Tarey 60 Executive Vice President 4316831 BE 28-12-2010 - - -
27 Manoj Kumar Fakey 47 Associate Vice President 4006217 B.Com ICWAI (Inter) 10-12-2013 - Ranbaxy lab Limited GM
28 Sunil Sharma 52 Vice President 5051163 BE MetallurgyMBA- Mktg. 09-12-2010 26 Essar Steel Head - Coated Products
29 Pradeep Tandon 53 Executive Vice President 6750303 MBA MA 13-01-2007 35 Essar Steel Raipur General Manager(Corporate Affairs)
30 Ashish Kumar 46 President 9709541 B.E. (Indus) 20-04-2007 23 Reliance Industries limited Procurement & Contract
31 Lewis Stone 49 Assistant Gen Manager 9126159 CHIETA-NQF-4 / Production 14-05-2012 27 Sasol Technologies -
32 Neal Strydom 38 Assistant Gen Manager 8313778 Diploma / Drawing 01-10-2013 19 Sasol Technologies -
33 Mohammad Asif 52 Associate Vice President 6895204 BE-Civil Diploma- Engineering 19-07-2011 27 Mesc LLC Projects Manager
34 Pankaj Garg 49 Vice President 5648231 B Com CA 03-12-2013 21 Surya Roshni Limited Vice President
35 Roopali Mehra 41 Executive Vice President 10662588 Eng HonsDip in Business AdmnMiddle Mgt Programe 18-09-2001 21 " Top Source Technologies Pvt Limted" Manager
36 Chanchal Kumar Mitra 59 Vice President 6918873 B.Tech Ist Class Mines Manager 18-02-2010 36 Coal India Ltd GM
37 Prakash Tewari 54 Vice President 7555403 BA M Sc. MDBA 07-09-2012 16 Tata Power Head-CSR & R&R

Notes:

1. Remuneration includes basic salary allowances leave travel allowancescompany’s contribution to provident fund and superannuation fund leave encashmentgratuity reimbursements monetary value of perquisites share in net profit/incentives onnet profit wherever applicable target variable pay etc. Target variable pay forFinancial Year 2014-15 was paid in Financial Year 2015-16 and is included in the abovedetails.

2. None of the employees hold by himself or along with his/her spouse and dependentchildren 2% or more of equity shares of the Company.

3. All appointments are/were contractual in accordance with terms & conditions asper company rules.

4. None of the employee is a relative of any Director of the Company.

5. Details of Remuneration of Key Managerial Personnel(s) are given else where in theBoard Report & Corporate Governance Report.

Form No. MR-3

SECRETARIAL AUDIT REPORT

For the Financial Year ended March 31 2016

[Pursuant to Section 204(1) of the Companies Act 2013 and Rule 9 of the (Appointmentand Remuneration of Managerial Personnel) Rules 2014]

To The Members

Jindal Steel & Power Limited (CIN: L27105HR1979PLC009913)

We have conducted the Secretarial Audit of the compliance of applicable statutoryprovisions and the adherence to good corporate practices by Jindal Steel & PowerLimited (hereinafter called the Company). Secretarial Auditwasconductedin of InsiderTrading) Regulations manner that provided us a reasonable basis for evaluating thecorporate conducts/statutory compliances and expressing our opinion thereon.

Based on our verification of the books papers minute books forms and returns fileds agents officer alsotheinformation providedbytheCompanyits and authorizedrepresentatives during the conduct of secretarial audit We hereby report that in ouropinion the Company has during the audit period covering the Financial Year ended onMarch 31 2016 complied with the statutory provisions listed hereunder and also that theCompany has proper Board-processes and compliance-mechanism in place to the extent in themanner and subject to the reporting made hereinafter:

We have examined the books papers minute books forms and returns filed and otherrecords maintained by the Company for the financial year ended on March 31 2016 accordingto the provisions of:

(i) The Companies Act 2013 (the Act) and the rules made thereunder; 1956(‘SCRA’)

(ii) The Securities Contracts (Regulation) and the rules made thereunder; and Bye-

(iii) The Depositories Act 1996 and the Regulations laws framed thereunder;

(iv) Foreign Exchange Management Act 1999 and the rules and regulations madethereunder;

(v) The following Regulations and Guidelines prescribed under the Securities andExchange Board of India Act 1992 (‘SEBI Act’):- (a) The Securities and ExchangeBoard of India (Substantial Regulations

(b) The Securities and Exchange Board of India 1992 (Prohibition and 2015.

(c) The Securitiesand Exchange Board of India (Issue of Capital and DisclosureRequirements)Regulations 2009;

(d) The Securities and Exchange Board of India (Employee Stock Option Scheme andEmployee Stock Purchase Scheme) Guidelines 1999;

(e) The Securities and Exchange Board of India (Issue and Listing of Debt Securities)Regulations2008;

(f) The Securities and Exchange Board of India (Registrars to an Issue and ShareTransfer Agents) Regulations 2006 regarding the Companies Act and dealing with client;

(g) The Securities and Exchange Board of India (Listing Obligations and DisclosuresRequirements) Regulations 2015

(vi) Electricity Act 2003

(vii) The Employees State Insurance Act 1948

(viii) Employees Provident Fund and Miscellaneous Provisions Act 1952

(ix) Employers Liability Act 1938

(x) Environment Protection Act 1986 and other environmental laws

(xi) Air(Preventionand

(xii) Water (Prevention and Control of Pollution) Cess Act (xiii) Water(Preventionand(xiv) Equal Remuneration Act 1976 (xv) Factories Act 1948 (xvi) Maternity Benefits Act1961 (xvii) Industrial Dispute Act 1947

(xviii) Payment of Wages Act 1936 and other applicable labour laws

(xix) National Tariff Policy

(xx) Essential Commodities Act 1955 (xxi) Explosives Act 1884 (xxii) Indian BoilersAct 1923 (xxiii) Mines Act 1952

(xxiv) Mines and Mineral (Regulation and Development) Act 1957

(xxv) Competition Act 2002 (xxvi) The Indian Stamp Act 1899 (xxvii) Other GeneralLaws excluding Taxation Laws.

During the period under review the Company has complied with the provisions of the ActRules Regulations Guidelines Standards etc. mentioned above except:

We have also examined compliance with the applicable clauses of the following:

i. Secretarial Standards issued by The Institute of Company Secretaries of India.

ii. The Listing Agreements entered into by the Company with the BSE Limited and theNational

During the period under review the Company has complied with the provisions of the ActRules Regulations Guidelines Standards etc. mentioned above:

We further report that

The Board of Directors of the Company is duly constituted with proper balance ofExecutive Directors Non-Executive Directors and Independent Directors. The changes in thecompositionof the Board of Directors that took place during the period under review werecarried out in compliance with the provisions of the Act.

Adequate notice is given to all directors to schedule the Board Meetings agenda anddetailed notes on agenda were sent at least seven days in advance and a system exists forseeking and obtaining further information and clarifications on the agenda items beforethe meeting and for meaningful participation at the meeting. In case of shorter noticethecompany has complied with the provisions of section 173 of the Companies Act 2013

Majority decision is carried through while the dissenting member’s views arecaptured and recorded as part of the minutes.

There are adequate systems and processes in the Company commensurate with the size andoperations of the company to monitor and ensure compliance with applicable laws rulesregulations and guidelines.

Further we report that there were no other instances having a major bearing on thecompany’s affairs under above referred laws rules regulations guidelinesstandards etc.

For MZ & Associates
Company Secretaries
CS Anurag Jain
Place: New Delhi Partner
Dated : 28th April 2016 FCS-6001 CP: 5750

ANNEXURE - D

ANNUAL REPORT ON CORPORATE SOCIAL RESPONSIBILITY (CSR) ACTIVITIES FOR THE FINANCIALYEAR 2015-16

1. A brief outline of the Company’s CSR policy including overview of projectsor programmes proposed to be undertaken and a reference to the web-link to the CSR policyand projects or programmes.

Brief of the Company’s CSR Policy:

The Company strongly believes that sustainable community development is essential forharmony between the community and the industry. The Company endeavours to make a positivecontribution especially to the underprivileged communities by wide range ofsocio-economic educational and health initiatives.

In line with the provisions of the Companies Act 2013 and on the recommendations ofthe Health Safety CSR & Environment Committee the Board of Directors had in itsmeeting held on April 29 2014 approved the CSR Policy of the Company. 

Detailed CSR Policy of the Company has been uploaded on thewebsiteoftheCompanyandcanbeviewedatbelowmentionedlink:

http://www.jindalsteelpower.com/sustainabilities/csr-overview.html

Proposed Programs to be Undertaken:

Activity Area
Mobile Health Van Multispecialty Health Camps Drinking water tanks to villages Telemedicine Health Water and Sanitation
1 centres Population stabilization programs Medical referral supports Anaemia control in Adolescent girls Low cost sanitary napkins Community Teachers support to Government Schools Merit-cum-need based Scholarships Adult Community Education & Skill
2 literacy programs Pre-school for under privileged and tribal children Vocational training for Physically challenged Skill development through community colleges Development
3 Need based community infrastructure Community Infrastructure
4 Watershed development Sustainable livelihood option & Women Empowerment (Jan Jeevika Kendra) Stabilising Farm livelihood & NTFP Entrepreneurship Development
5 Sports training support to youths of community- Wushu Boxing Football Kabaddi Kho-Kho Hockey and capacity building for National level competition Sports Art & Culture
6 Community driven Plantation & Creating Carbon Sinks Control of Soil Erosion Ground water recharge on Ridge to valley basis & encouraging Bio degradable Products Environment & Community driven Natural Resources Management

2. Composition of the CSR Committee:

The Health Safety CSR & Environment Committee of the Company comprises majority ofIndependent Directors as under:-

1. Mr. Arun Kumar - Chairman

2. Mr. Hardip Singh Wirk - Member

3. Mr. Ravi Uppal Member

4. Mr. D.K. Saraogi - Member

3. Average net profit of the Company for last three Financial Years:

Rs 1220.82 crore

4. Prescribed CSR Expenditure (two percent of the amount as in item 3 above):

Rs 24.42 crore

5. Details of CSR spend for the Financial Year: a. Total amount spent for theFinancial Year: Rs 26.71 crore b. Amount unspent if any: Nil c. Manner in which theamount spent during the Financial Year is detailed below:

CSR Project or Activity Identified Sector in which the project is covered Project or Programme (1) Local Area or Other (2) Specify the State and district where projects or programmes was undertaken Amount Outlay (Budget) Project or Program wise Amount Spent on the project or programme Sub Heads: (1) Direct Expenditure on projects or programmes. (2) Overheads Cumulative Expenditure upto reporting period Amount Spent*: Direct or through implementing agency
Rs in crore Rs in crore Rs in crore Rs in crore
1 Anemia Control in Adolescent Girls Mobile Health camps for safe motherhood & controlling IMR & MMR Multispecialty Health Camps Medical referral support Vatsalya Telemedicine HIV/AIDS awareness & Screening Low cost sanitary napkins Drinking water in villages Healthcare Sanitation & Drinking Water Angul Barbil Tensa (Odisha) Raigarh (Chattisgarh) Patratu Jeraldabaru Godda (Jharkhand) 6.28 5.00 5.00 5.00
2 Community Teachers support to Government Schools Merit-cum- means scholarship Aarambh & Prarambh Pre-schools & Primary schools for underprivileged tribal & vulnerable children Vocational Training of Physically challenged Skill Building through Community Colleges Strengthening of Anganwadi & Balwadi Adult Literacy Community Education & Skill Development Angul Barbil Tensa (Odisha) Raigarh (Chattisgarh) Patratu Jeraldabaru (Jharkhand) 13.15 12.01 12.01 12.01
3 Capacity Building of farmers non-farm livelihood Strengthening & Capacity Building of SHGs for supplementary income generation Integrated Watershed development Jan Jeevika Kendra (Sustainable Livelihood & Women Empowerment) Stabilizing & augmenting income of Farming families & Promoting Non Timber Forest Produces (Lac cultivation) Dairy Farming Livelihood Angul Barbil Tensa (Odisha) Raigarh (Chattisgarh) Patratu Jeraldabaru (Jharkhand) 4.33 3.38 3.38 3.38
4 Construction of Roads and Community Buildings Deepening & Cleaning of Ponds and Micro Water harvesting structures Installation of hand pumps & bore wells Rural Electrification Rural Development Projects Angul Barbil Tensa (Odisha) Raigarh (Chattisgarh) Patratu Jeraldabaru (Jharkhand) 0.45 0.46 0.46 0.46
5 a. Training & Promotion of Hockey & Football & ethnic sports and capacity building of youths for state / national level Sports Arts & Culture Environment Angul Barbil Tensa (Odisha) Patratu Jeraldabaru (Jharkhand) 0.61 0.51 0.51 0.51
b. Formation of Youth clubs Community Plantation Construction Renovation of Water harvesting structures & Maintenance of Avenue Plantation Sports Arts & Culture Environment
6 Personnel Administration Consultancy Concurrent Monitoring Coordination Field Animators Training & Capacity Building Project Delivery Angul Barbil Tensa (Odisha) Raigarh (Chattisgarh) Patratu Jeraldabaru (Jharkhand) 5.80 5.35 5.35 5.35
Total 30.62 26.71 26.71 26.71

*Details of Implementing Agencies: Maulana Azad Samajik Evam Shaikshnik Parishad(MASSP) Deoghar Ekutir Rural Management Services Pvt Ltd Bhubaneswar John AugustusPrison & Social Welfare Services Athgarh NRDC Sonepur DAV College ManagingCommittee SAAKH Foundation Ranchi Ramgarh Football Association SARDA Ramgarh STEP bySTEP Institute Ramgarh JEWS Raigarh Adivasi Vikas Samiti Joda.

RESPONSIBILITY STATEMENT

The Responsibility Statement of the Health Safety CSR and Environment Committee ofthe Board of Directors of the Company is reproduced below:

‘The implementation and monitoring of Corporate Social Responsibility (CSR)Policy is in compliance with CSR objectives and policy of the Company.’

Sd/- Sd/-
Ravi Uppal Arun Kumar
Managing Director & Group CEO Chairman
Health Safety CSR and Environment Committee

ANNEXURE - E

Statement as at March 31 2016 pursuant to Securities and Exchange Board of India(Share Based Employee Benefits) Regulations

Particulars Details
2015-16

2014-15

2013-14

1 Number of shares issued under ESPS 2013 Nil

17816

11750

2 Issue Price NA Rs 1/- per equity share Rs 1/- per equity share
Employee wise details of the shares issued to: Name of Employee No. of shares allotted Name of Employee No. of shares allotted
(i) Senior Managerial Personnel NA Mr. Ravi Uppal 17816 Mr. Ravi Uppal 11750
(ii) any other employee who is issued shares in any one year amounting to 5% or more shares issued during that year yees who were issued shares during any emplo NA NA NA
(iii)identified one year equal to or exceeding 1% of the issued capital of the company at the time of issuance NA NA NA
4 Diluted Earnings Per Share pursuant to issue of Equity Shares under ESPS 2013 NA (3.40) 13.89
5 Consideration received against allotment of Equity Shares NA Rs 17816 Rs 11750
6 Loan repaid by Trust during the year from exercise price received NA NA NA

 

For & on behalf of the Board of Directors
Naveen Jindal
Place: New Delhi Chairman
Dated : June 21 2016 DIN: 00001523

ANNEXURE - G

Particulars of Energy Conservation Technology Absorption and Foreign Exchange Earningsand Outgo required under the Companies (Accounts) Rules 2014

A. CONSERVATION OF ENERGY ener

(i) Stepstaken&Impactonconservation of

Some of the energy conservation the Company were:

Raigarh

1. Modification of FD fan suction duct for remaining 7 fans in 2x25 MW power plant.Electrical power saving of 361152 kWh/year.

2. Modification of EAF-1 to new oxygen furnace (NOF). Energy Saving :0.15 GCal/TCS.

3. Replacement of conventionalC.T. fan of 2x25 MW power plant by Energy efficient fan.Energy Saving: 48312 kWh/ Year.

4. Installation of LV VF drives inAFBC-3IDfansofPP-2. coating’ inside casing &Energy Saving:744000 kWh/Year.

5. Installation of Timer for total 588 nos. 400W Shed & Flood Lights in EightDifferent Bays in MLSM. Energy Saving:744000 kWh/Year.

6. Furnace Charging Hydraulic Automatic Pump Stoppage in MLSM. Energy Saving:74160kWh/Year.

7. Automatic Start/Stop of Dilution Fan in MLSM. Energy Saving: 32400 kWh/Year.

8. Specific Power consumption came down 2 kwh/ton of Sinter from 32 kwh to 30 kwh inthe year 2015-16 due to increased production by capacity enhancement (Sinter Plant).

Angul

9. Electrical power saving of 2715 MWh/year is achieved by keeping one additional pumpout of operation. However the same has been kept as standby.

10. Trimming down of make up water pump. Electric power saving of 1200MWh/year isachieved.

11. Modification of Primary Cooling Circuit Pump P2& P3 (510& 125 kW) at SMShas been implemented effectively on all 6 pumps. Electrical power saving of 2142MWh/ yearand easy operation of the Pumps is achieved after modification. measures adopted across12. Power Plant & Steel Plant have separate Raw Water Pumps (315 & 180 kW) : Asper present condition only power plant RW Pump has been kept in operation (meeting therequirement of both the plants) with lesser power consumption (from 285 to 230 kW) due toreduction in line pressure by taking a branch and valves installation in interconnectedlines resulting power saving of 945MWh/year.

13. Modification of Power Plant & Process Boiler DMCW Pump (110 & 30 kW) bytrimmed-down the impellers resulting power saving of 1255 MWh/year.

14. Effective implementation of CGP Cooling Tower: Utilization of ‘glass flakeimpellers of CW Pumps (1.1 MW) in 4-pumps resulted power saving of 2540 MWh/year isachieved.

15. Process Boiler Compressor (2x132 kW): As centralized Compressors (3x1700 kW) runscontinuously requirements of entire Plant and requirement of Process Boiler isconsiderably lesshence a branch line from main supply header has been taken and operationof less efficient Compressors at saving of 1256 MWh/year is achieved by keeping spare ofthe Compressors.

16. 1-Stage impeller removed out of 6 from condensate extraction pump (315 kW) inpower plant for optimization of supply pressure. Modification is effectively implementedin all the pumps. Power saving of 1008MWh/year is achieved by the modification.

17. Islanding (House Load Operation) in 2 Units of 6 X 135 MW Captive Power Plantresulted minimisation of blackout production loss & disturbances.

18. RMHS Compressor (450 kW): As centralized Compressors run continuously for entirePlant so a branch line has been taken from main supply header and operation of thecompressor is stopped. Power saving of 1360 MWh/ year is achieved by keeping spare of thecompressor.

19. Oxygen Plant Cooling Tower: Available flow of CW Pumps (670kW) was higher sooptimized the flow as per actual requirement. Power saving of 792MWh/year is achieved.

20. Oxygen Plant:

a) By re-configuringthe production to parameters Gaseous Nitrogen Production 140% ofthe rated capacity at same power consumption. Electrical power saving of 2500 MWh/month isachieved for additional nitrogen production.

b) By reducing the pressure (by 35 kg/cm2 to 20 kg/cm2) of liquid oxygen back up standby pump electrical power saving of 1240 MWh/year is achieved including saving from boiloff loss.

21 Ash Cooler Fan (132 kW) at Process Boiler: Faced continuous problem in system due togap in speed of fan with motor. Hence took a branch from FD Fan duct as ample margin wasavailable in the FD fan and isolated Ash Cooler Fan from the system. Effectivelyimplemented in Boiler-1. Electrical power saving of 410 MWh/year is achieved by isolationof Ash Cooler Fan in PB-1.

22. Studied and optimized fuel (Propane) consumption by reorganizing operation timingof torch cutting machines in Billet Caster at SMS. Propane saving of 100 Ton/year isachieved by reduction in operation

23. Intake Water Pump House (6 x 2.2 MW): As per original design power consumption ofmotors was higher than the rated capacity so trimmed-down the Impellers for optimaloperation of pumps. Power saving of 588 MWh/ year is achieved by the modification.

24. Utilization of condensate generated after heat at DRI in dearator of processboiler. Reduction in DM water consumption by 1500 Ton/day and electrical power saving 462MWh/year is achieved.

25. Compressed Air Station-1: CT Pumps (75 kW) were Hence trimmed- running inthrottled down the impeller to run pumps in full valve condition and increase flow.Effectively Electrical power saving of 571MWh/year is achieved by the pump modification.

26. Modification done at junction houses for main RMHS Conveyors to reducefinesgeneration of raw materials resulted power saving of 628 MWh/year is achieved

27. Replacement of cooling tower fan (4 no’s) with energy efficient FRP blades inpower plant resulted power saving of 724.9 MWh/year.

28. Utilization of centralized compressed air instead of less efficient compressor (90kW motor) installed at Coal Washery resulted power saving of 594MWh/year.ation ofunutilized LP steam in the place of electrical Utiliz

29. vaporizer for supply of propane at storage area of Central Utility resulted powersaving of 122MWh/year.

30. Already installed spare &old filters have also been utilized with set of newfilters in drinking water filtration plant to run the supply Pump (55kW) in full capacitywith desired flow. Power saving of 92.7MWh/year is achieved by reduction in system runninghours.

31. Drinking water supply pump (2x30kW) for Township at Central Utility: Pressure ofsupply line has been optimized to increase flow. Power saving of 65.7 MWh/year is achievedby reduction in running hour of supply pumps

32. AtCentral only 1-pump is kept in operation at full valve position with 1-fan andsecond pump with fan are kept as standby in cooling tower of packaged A/C which isfulfills the requirement. Power saving of 22.8 MWh/year is achieved by keeping one pumpwith fan out of operation which is available as standby

33. Utilization of centralized compressed air instead of small compressor (22 kWmotor) installed at RMHS track hopper. Power saving of 61 MWh/year is achieved by keepingspare of the compressor.

34. Lighting power consumption in CGP is optimized through installation of timers. Tapposition of lighting Transformers is also reduced to optimize the supply voltage. Powersaving of 286 MWh/year is achieved.

35. Solar DaylightinstalledinED-Officetoutilized renewable (solar) energy to light-upoffice for 8 10 hrs per day during day time to save electrical

Barbil

36. Reduction of contract demand from 50 MW to 15 MW in twopumps. with OPTCL/NESCOresulting intosavingof Rs 7800000/- per month.

37. APFC (Automatic Power Factor Correction) has been installed at Pellet Plant 2 forthe improvement of power factor reduce power loss.

38. Auto Day Night switching system introduced in furnace area of Pellet Plant 2reduces power consumption.Hostel and other areas of Executiv

39. LEDlightsinstalledat colony to save energy.

40. Monitoring of power through Open Access and production for generating .minimizingspecificconsumption

41. Incorporating timers for switching off the street lights and unused lights insidethe plant premises for the conservation of

42. Monitoring of individual area wise and building wise effectivconservation.energyconsumptionfor

43. The ID Fan RAV Fan and Purge System of the Bag Filters of Pellet Plant 1 PelletPlant 2 and IOLC (Iron Ore Loading if the Complex) are now stopped after some time tosaving of energy. concernedprocessstopsresulting

Patratu

44. Transparent sheets are beingusedasceilingatBRMand acturing. WRM to utilize daylight. High bay

45 Capacitor banks are being used at BRM and WRM to increase the power factor forminimizing the energy wastage.

46. Energy management system has been implemented by installing KWH meters to reducethe unnecessary end usage of electricity.

Average per day KWH consumption before implication Average per day KWH consumption after implication
10724 6415

47. Use of energy efficient LED Lamps in Producer Gas Plant (PGP).

48. 3000 no’s of 36w tube light had been replaced by 9w LED Lamp thus saving ofenergy by 75 %.

49. Use of energy efficient LED Lamps in Producer Gas Plant (PGP) Area

a) Replacing 45 no. of 36 x 3 watt lamps by 20 x 2 watt LED lamps.

b) Replacing 60 no. of 36 x 3 watt lamps by 42 watt LED lamps.

c) Replacing 25 no. of 36 x 3 watt lamps by 25 watt LED lamps.

51. The present burners installed can be run on single combustion blower instead of twoblowers in earlier burner design resulting consumption.

52. One combustion blower and two booster pump has been installed with A.C. drivecontrol in place of soft starter resulting in power saving of approx 25%.

Raipur

53. Ensuring Optimum Load size at time of using Heat Treatment facility made possibleby combining loads of Heat treatment furnace located in different shops. This helped toreduce fuel consumption.

54. Material Handling facilities available at all shops are used judiciously and properchecks & logs have been put in place to track usability of the same so as to avoid anymisuse / over-use.

55. Monitoring mechanism put in place to avoid wastage and optimise consumption of LPGDA CO2 cylinders for fabrication/ Lights in certain shops during 56. Switchingoff nighthours helped conserve energy.

57. Steel Melting carried out during night shifts since power consumption rates areless during the night.

58. Replacement of sodium vapour lamps with LED lights in residential areas.

59. Third Party Energy Audit carried out to ensure all systems put in place for energyconservations are duly effective and functional.

ernate source of energy: alt (ii) Stepstakenforutilizing

Raipur:

1. Utilization of Solar plant of 15 KWP installed on top of Training center. The sameis being used for power Street Lights on the adjoining road within the unit

Patratu:

2. Installation of Producer Gas Plant which converts bituminous coal to gas and thesame is being used in reheating furnaces as fuel substituting Heavy Furnace Oil (HFO).

3. Use of energy efficient LED lamps in Producer Gas Plant (PGP) area.

(iii) The capital investment on energy conservation equipment: Raigarh:inreductionRs 18.00 crore

B. TECHNOLOGY ABSORPTION:

a) Major efforts made towards technology absorption: Raigarh:

1) Usage of DRI accretion & SMS slag in SAF as a resource

2) Reduce the consumption granulation conveying system

3) Stablizing the PCI System in BF1

4) Utilization of Waste settling pond fines

5) Retrieval of Mole Sieves & Re-use in VPSA Oxygen Plant

6) Use of Steel Claded Lip bricks (MCB)

7) Reduction of Sudden Grid / House Load Failure machine 8) Reducethedowntime ofPigcasting

9) Commissioning of Rail Head Hardening System. 10) Commissioning of FlatnessMeasurement Gauge at NDT Centre.

11) Up gradation of Flash Butt Welding Machine. 12) Revamping of equipment for Platemill was undertaken in order to enhance product quality.

Patratu:

13) People have been identified for on the job training being organized at similarProducer Gas Plants in China.

b) The benefits derived like product improvement cost reduction product developmentor import substitution:

Raigarh

Rail Head Hardened System

Product Improvement: Head-hardened rails can withstand increased wear fromtrains travelling faster at greater frequencies and with heavier cargo. These rails areused for tracks that carry heavy loads for acceleration and deceleration sections ofrailway lines for railway switches crossings or expansion joints and in small-radiuscurves.

Product Development Head Hardened Rail Manufactured with steel grades - 1080 HH880 HH

Flatness Measurement Gauge

Product Improvement FMG measures the horizontal & vertical flatness of the railhead by means of the light section measurement method. It’s a non-destructive qualitytesting machine with better accuracy.

Flash Butt Welding Machine

Product Development Long Rail Panels (UIC 60) 260 Mtrs.

Product Improvement The Flash butt welding machine Model: GAAS80 Make SchlatterIndustries Switzerland uses highly dynamic joining method allowing a large number ofwelds to be performed quickly accurately cleanly economically and with reproduciblequality.

Plate Mill

Product quality improvement in terms dimensional tolerances shape surface finish andmetallurgical properties. It will enable rolling of value added grades like APIx70 APIx80& Micro alloys etc. of return idler in slag

Angul

Product Development:

1. Development of ASTM A204 Grade B & A for Boiler Quality Plate donesuccessfully & supplied.

Downtime 2. Development of ASTM A517 Grade F/ EN 10025 -S 690 Of Turbo-Blower InCase Of QL (Quench & tempered) for Boiler Quality Plate done successfully &supplied.

3. Development of ASTM A572 Gr 65 & 50 for Structural application done successfully& supplied.

Future Plan of Product Development:

1. Development of ASTM A516 Grade 70 Higher thickness up to 150 mm Plate.

2. Development of S 355 NL for Higher thickness up to 100mm Plate.

3. Development of ABS Grade & EH/DH - 40 up to 80 mm thickness plates for Shippinggrade applications.

Raipur

Product Improvements: Open & closed E-panel construction of EOT Cranes

Cost Reduction:

1. Entailed Saving of Rs 15 Lakh in fabrication shop by exploiting in-house dishforming facility for higher thickness jobs and thereby avoid outsourcing and relatedcosts.

2. Entailed saving of Rs 9 Lakh by undertaking assembly in-house and avoidingoutsourcing of the same.

3. Reduced diesel consumption in heat treatment furnace from about 55 litres / ton to36 litres/ ton through energy audit.

Product Development:

1. 32 metre long Coker Extractor Plus Column for UOP LLC (a Honeywell company) for itsMerox Unit in Argentina

2. 300 MT Four Girder Hot Metal Cranes (open and closed panel construction) with E-roominside main Girder

3. Grab Bucket of capacity 18m3 for Handling coal and Iron ore supplied to JITFKolkata

Import Substitution of Flash Butt Welding - Generated savings of Rs 9.5 crorethrough import substitution of products.

Patratu:

Many of the Mill spare Parts were imported from USA by OEM now many of these spareshave been developed and getting manufactured in India reducing the import.

C) IN CASE OF IMPORTED TECHNOLOGY (IMPORTED DURING THE LAST THREE YEARS RECKONED FROMTHE BEGINNING OF THE FINANCIAL YEAR):

Raigarh: Auto Casting

a) The detailsoftechnologyImported-AutoCastingstart in Beam blank and Bloom in CombiCaster at SMS-2. b) Supplier - RAMON SCIENCE & TECHNOLOGY CO LTD China c) The year ofimport April 2014 d) Whether the technology been fully absorbed - Yes 100% absorbed.Commissioned on 15.04.2015.

New Oxy Furnace (NOF)

a) The details of technology Imported New Oxy Furnace (NOF) commissioned at SMS-2 Itis different from Electric Arc Furnace as no electricity is used in this furnace.

b) Supplier - TENOVA Group Italy.

c) The year of import June 2015

d) Whether the technology been fully absorbed Yes 100% absorbed. Commissioned on31.08.2015

Rail Head Hardening System etc.

a) The details of technology imported and supplier:

• Rail Head Hardening System- RHH Induction heaters for heating head of Rail &Selective Cooling Line from SMS Group Germany

• Flatness Measurement Gauge for horizontal & vertical flatness measurement ofthe rail head supplied by Next Sense Austria

• Up gradation of Flash Butt Welding by Original Equipment manufacturer SchlatterIndustries Switzerland.

b) The year of import:

• Rail Head Hardening- 2013-14

• Flatness Measurement Gauge 2014

• Up gradation of Flash Butt Welding - 2013-14

c) Whether the technology been fully absorbed: Yes

• Rail Head Hardening- It has been successfully commissioned

• Flatness Measurement Gauge It has been successfully commissioned

Up gradation Upgradation has been done successfully.

Plate Mill Raigarh

a) The details of technology imported: Engineering and equipment (including mechanicalhydraulic electrical & automation) from Danieli Mill equipment at Raigarh.

• MV motor and drives from GE Power Conversion UK

• Profile gauge and flatness gauge from IMS Germany

b) The year of import: FY 14-15 and 15-16

c) Whether the technology has been fully absorbed: No

d) If not fully absorbed areas where the absorption has not taken place and thereasons thereof: Equipment was commissioned in January 2016.

The equipment stabilization and process Product development is being done.

Producer Gas Plant Patratu

a) The details of technology imported:

The Producer Gas Plant is based on Chinese Technology. It is a two stage gasificationProcess followed by cooling and purification of gas. The purified gas is boosted tohigher pressure using booster Pumps & is then fed to the reheating furnaces. Thecapacity of the Plant is 80000Nm3 of gas/hour. There are 10 dia. Each. The input coal hasa GCV of 4600kCal/kg and the output gas has a CV of 1400 kCal/Nm3.This Plant isbasedonzeroeffluent discharge.

b) The year of import: 2014-15

c) Whether the technology has been fully absorbed: No

d) If not fully absorbed areas where the absorption has not taken place and thereasons thereof: The Producer gas Plant has not been operated at its full capacity yet.The desired operational parameters are yet to be achieved.

D. RESEARCH AND DEVELOPMENT (R&D)

Raigarh:

a) Specific areas in which R&D carried out by the Company:

1. New Grade Development:

1.a: Semis: 16MnCr5 S53C 100CR6 Gr880(H) CL-1 S460NH(SPLIB) JSL-80 40Cr4 45C8En18D MSL-IB En15A 27MCB5HC61/65(NVD) 1527J-VT En18D E550BR JSL-7B S35C-N GradeF-65 ISMT 110 ISMTV/20MNV6JSL36 MSLIB(MOD) EA2 JSL3

1.b: RUBM: IS 2062 E 550BR Grade (High -Strength Steel beam with Minimum Yield Strength(YS) of 550MPa

1.c: MLSM: IS2062 E410 IS2062 E450 BSEN S460N 1.d: Plate Mill: Development of heavythickness pressure vessel plates in 100 mm thickness with impact guarantee at -46 degreecentigrade: ASME SA 516grade 70

2. NewSection

2.a: RUBM: Angle 250x250x 20 mm UIC-60 (Long Rail) 260 Mtrs UC 152x152x 51 kg/m W14x14.5 inch (109 lbs/ft) UC 203x203x 37 kg/m 2.b: MLSM: UB_254x146 AL_150x150x19 UB254x146 (31Kg/Mtr) UC_152x152 (2330&37 Kg/Mtr) MB_305x78 (17.6/16.1 Kg/Mtr)AL_75x75x5 AL_65x65x6 AL_65x65x8 Al_80x80x6 AL_200x200x28 AL_80x80x8/10

3. Use of non-returning valve for ladle purging at SMS-II to ensure better safety.

4. Above burden probe 0 (DRI plant side) to be replaced with new one & make readyto existing valve

5. Use of solid wastes (DRI accretion and SMS Slag) in Submerged Arc Furnace for Silicomanganese production

6. Usage of Anthracite as Solid fuel at Sinter Plant

B) Benefits derived as a result of the above R&D:

1. New Grade development and New Section development: Your Company has successfullydeveloped variety of new products/ grades/ sections thereby increasing its product bandwidth to meet customer requirements.

2. Installed at all circulation ladles at SMS 2. The result is satisfactory and tilldate no failure recorded.

3. No need to procure costly probes. Monetary benefits. Better operational

4. This helped in cost saving of SiMn Production and further it has helped to reduceSp. Power consumption of SiMn.

5. Successfully replaced coke fines by Anthracite coal (as a fuel) to reduce the costof sinter making.

C) Future Plan of Action:

1) Use of L.C. Castable as safety lining for ladle for energy saving & to maximizeladle safety refractory lining life.

2) Quality improvement of SS Injection pipe at DRI

3) Quality Improvement of SS Air Tube at DRI

4) Repairing of Worn Out Refractory Lining at DRI

5) Use of EPDM HR750mm Belt in Cooler Discharge Conveyor at DRI

6) Use of Polymide 750mm Belt in Cooler Discharge Conveyor at DRI

7) Screen facility from single deck to double deck to reduce fines % in Feeding rawmaterial in DRI Kilns

8) Utilization of FC % In char to reduce coal consumptionat DRI

9) Utilization of variety of Fly Ashes available at M/S JSPL Raigarh (CG) fordeveloping Cementitious LSA(Ligno-Silico-Aluminious) Material for Non-StructuralApplications.

10) Head Hardening of Rails

D. Expenditure on R & D during 2015-16:

a. Capital : Rs 1.52 crore
b. Recurring : Rs 7.04 crore
c. Total : Rs 8.56 crore

E. FOREIGN EXCHANGE EARNINGS & OUTGO:

(Rs in crore)
Particulars 2015-16 2014-15
1 Earnings in Foreign Currency . 658.84 1663.47
2 Expenditure in Foreign Currency 206.38 241.49

 

For and on behalf of the Board of Directors
Place: New Delhi Naveen Jindal
Dated : June 21 2016 Chairman
DIN : 00001523