Companies & Industry »Directors' Report
Jindal Steel & Power Ltd - Directors' Report

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Code: JINDALSTEL
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Dear Members,

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

FINANCIAL RESULTS

The financial performance of your Company for the Financial Year ended March 31, 2016 is 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 12,852.46 13,686.79 18,632.26 19,626.27
Profit before finance cost and depreciation 2,481.31 4,018.63 3,633.03 5,707.52
Profit/(Loss) before tax (1,659.72) (639.41) (2,674.93) (1,542.75)
Less: Provision of Tax 640.84 (328.73) (676.30) (88.16)
Profit/(Loss) after tax (1,018.88) (310.68) (1,998.63) (1,454.59)
Balance brought forward from previous year 9,755.39 10,385.18 16,718.39 18,501.07
Profit available forAppropriations 8,736.51 10,074.50 14,816.38 17,222.95
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 8,498.97 9,755.39 13,987.60 16,718.39

MATERIAL CHANGES AFFECTING FINANCIAL POSITION

Your Board of Directors in its meetingheld on May 03, 2016, subject to customary regulatory approval and other condition precedents had approved the Divestment of 1000MW power unit of the Subsidiary Company .e.JindalPowerLimitedlocatedin related party i.e. JSW Energy Limited through a process of scheme or other mechanisms including transfer through special purpose vehicle ("SPV") and thereafter sale of entire share capital and other securities of the said SPV in terms of Share Purchase Agreement for an enterprise value of Rs 6,500 crore plus value of Net Current Assets as on the closing date. The valuation may vary based upon the achievement of Power Purchase Agreement(s), Fuel sourcing tie-ups as prescribed in the Agreement subject to the minimum of Rs 4,000 crore plus value of Net Current Assets as on the closing date.

FINANCIAL HIGHLIGHTS

On standalone basis the total revenue (net of excise) was Rs 12,852.46 crore as against Rs 13,686.79 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 previous year showing an increase of 20.3% and total export was 2.41 Lakh MT as compared to 4.50 Lakh MT in the previous year showing a decrease of 46.4%.

Profit before tax (PBT) was Rs (-) 1,659.72 crore as against Rs (-) 639.41 crore in the previous year and profit after Rs (-) 1,018.88 crore against Rs (-) 310.68 crore in the previous year.

OPERATIONAL HIGHLIGHTS

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

Power: During the year under review, 6,870 million Kwh of power was generated as against 7,340 million Kwh of power in the previous year.

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

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

Machinery: Machinery division in Raipur unit produced 1,931 MT of castings and has done machining of 14,088 MT, as against 1,832 MT previous year. and10,592MT

Mining: The mining of calibrated iron ore at captive mine at Tensa in Odisha was 6.22 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 MTPA integrated 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 Steel production 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 from Coal) plantintheworldwhich and improved its operational efficiency through various drives and hence doubled the production.

c) Plate Mill: Your Company has one of the widest plate mill (5mtrs. wide) plant with 1.2 MTPA capacity and is producing different types of value added plates for sectors such 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) and Process Boilers (3x1800 TPH).

Steel Plant at Raigarh, Chhattisgarh

To enhance the plant’s productivity and output, your Company has completed the following 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 thus resultingin improved yield % and reduced conversion cost. The technology has been supplied by Tenova SPA, Italy.

2. Long Rail Welding facility at RUBM which is now welding 3 nos. of 87 Mtr Rails into 260 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 and coils.

Pellet Plant at Barbil, Odisha

Your Company has completed Rapid Loading System and Fines ConveyingSystemfromwagontippler

Machinery Division at Raipur, Chhattisgarh

Your Company has implemented following facilitiesduring the Financial Year under review:

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 for Universal Testing Machine, Brinell Hardness Tester, Notch Broching Machine and Profile Projector to meet NABL requirements.

Shadeed Iron & Steel, Oman

Shadeed Iron & Steel LLC, Oman, a Subsidiary Company has commissioned the world’s largest and most modern state-of-the-art 1.4 MTPA Rebar Mill on January 17, 2016 to supply finished steels, the first time in its five-year-history with the imminent production of Rebar’s for the constructionindustry to cater mainly to domestic and Middle East countries. The Steel-making and Rolling Complex was dedicated to the nation on March 20, 2016.

PROJECTS UNDER IMPLEMENTATION

Chhattis SteelPlant Raigarh,

Your Company has the following projects under implementation with a view to increase the 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 increase throughput.

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

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 the present 1.5 MTPA to 5 MTPA through the conventional integrated steel plant route i.e Coke Oven and ByProduct Plant, Sinter Plant, Blast Furnace, Steel Melting Shop - II, Bar Mill and other allied units.

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

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

Machinery Division at Raipur, Chhattisgarh

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

1. Plate Bending Machine for higher thickness bending of Plates upto 120 mm (Thk) and 4000 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 type Boring 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 not recommended any Dividend.

During the year, the unclaimed dividend of Rs 25,84,017/- (Rupees Twenty Five Lakh Eighty Four Thousand and Seventeen Only) pertaining to interim dividend of Financial Year 2007-08 and Rs 42,65,953/- (Rupees Forty Two Lakh Sixty Five Thousand Nine Hundred and Fifty Three Only) pertaining to final dividend of the Financial Year 2007-08, have been transferred to the Investor Education and Protection Fund, (IEPF), Government of India. The details including last date of claiming of unclaimed / unpaid dividend amount are given at the end of the Notice of the Annual General

CREDIT RATING

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

CONSOLIDATED FINANCIAL STATEMENTS

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

SHARE CAPITAL

The Authorised Share Capital of the Company is Rs 2,00,00,00,000/- (Rupees Two Hundred crore only) divided into 2,00,00,00,000 (Two Hundred crore) equity shares of Rs 1/- (Rupee One) each. The paid up equity share capital as on March 31, 2016 was Rs 91,49,03,800/- (Rupees Ninety One crore Forty Nine Lakh Three Thousand and Eight Hundred only) comprising 91,49,03,800 (Ninety One crore Forty Nine Lakh Three Thousand and Eight Hundred) equity shares of Rs 1/- (Rupee One) each.

Your Company has an Employee Share Purchase Scheme namely JSPL ESPS 2013. Relevant Disclosure pursuant to Securitiesand Exchange Board of India (Share Based Employee Benefits) 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 as on March 31, 2016 was Rs 3,912 crore. Out of Rs 3,912 crore, the NCDs amounting to Rs 300 crore were redeemed on April 4, 2016.

DEPOSITS

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

RELATED PARTY TRANSACTIONS

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

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

Moreover, on the recommendations of the Audit Committee, your Board had revised the Policy on Related Party Transactions in accordance with Securitiesand Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 and as per the amended 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 provisions of 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 quality steel solutions, expertise and with a view of expansion and diversification, it has created multiple subsidiaries, domestic and abroad, associates and joint ventures for facilitating these operations in various countries. A separate statement containing salient features of Financial Statements of Subsidiaries, Associates and Joint Ventures of your Company forms part of Consolidated Financial Statements in terms of Section 129 of the Companies Act, 2013.

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

The Financial Statements of Subsidiary Companies are kept open for inspection by the shareholders at the Registered Office your Company during business hours on all days except 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 of obtaining a copy of the said Financial Statements may write to the Company at its Registered Office or Corporate Office. The Financial Statements including Consolidated Financial Statements and all other documents required be attached to this Report have been uploaded on the website of your Company viz. www.jindalsteelpower.com

Your Company has framed a policy for determining "Material Subsidiary", in terms of Regulation Board of India (Listing Obligations and Disclosure Requirements) Regulation, 2015. Jindal Power Limited is a material subsidiary of the Company in terms of the said policy. The Policy on Material Subsidiary has been uploaded on the Company’s website 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 2,800 MW power plant at Tamnar, Chhattisgarh.

During the year under review, 1,000 MW (4x250 MW) power plant generated 5,169 million units of power representing Plant Load Factor (PLF) as against 8,113 million units of power representing 92.61% PLF in the previous year.

Commercial operation of first the 2,400 MW (4x600 MW) thermal power project being set up in Tamnar, Raigarh, Chhattisgarh was declared in March 2014.

third unit of 600 MW of the 2,400 MW Commercialoperation

(4x600 MW) thermal power project was declared on January 15, 2015. With this, the installed power generation capacity of JPL has increased to 2,800 MW. During Financial Year 2015-16, these units generated 4,372 million units of power.

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

During the year under review, JPL has recorded total revenue of Rs 3,513.19 crore and the 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., is operating 1.5 MTPA or Brigutted Iron plant and Steel melt shop. It has recorded sales of Rs 2,815.77 crore, in the Financial Year 2015-16 and earned a profit after tax of the Rs 6.18 crore.

JINDAL MINING SA (PTY) LIMITED, SOUTH AFRICA

The operating coal mine, recorded sales ofRs 110.69 crore in Financial Year 2015-16 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 and incurred 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 and incurred a loss of Rs 420.50 crore.

With a view to ensure availability of coal and other raw materials, the Company has, through its other subsidiaries, acquired exploration/ mining interests in Botswana, Indonesia, 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 an AdditionalDirector and Whole-time Director by the Board of Directors in its meeting heldonMay27,2015.Subsequently, ees of the Board of Directors. the Shareholders of the Company in the Annual General Meeting held on Septemberee Committ 18, 2015 approved the appointment of Director Mr. Rajeev Rupendra BhadauriaasDirectorandWhole-time emuneration Committee of the Company. mittee

Key Managerial Personnel

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

During the year under review, Mr. Harish Dua was appointed as the Acting Chief Financial Officer November 30, 2015. Mr. Kannabiran Rajagopal has been appointed as Group Chief 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 the Company w.e.f. 30, 2016 and Mr. Chandan Roy has resigned from the position of Independent Director of the Company w.e.f. June 07, 2016.

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

Retirement by Rotation

In accordance with the provisions of Section 152 of the Companies Act, 2013 and in terms 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 ensuing Annual General Meeting and being eligible, seek re-appointment. Your Board of Directors recommends their reappointment.

BOARD EVALUATION

The Companies Act, 2013 mandates formal annual evaluation by the Board of its own performance and that of its committees and Individual Directors. Schedule IV to the Companies Act, 2013 provides that the performance evaluation of Independent Directors shall 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 Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Board has carried out annual evaluation of performance of Directors individually, Board as a wholeandfollowing

i) Audit

ii) Nominationand

iii) Health,Safety,CSRandEnvironmentCommittee

iv) Stakeholders’Relationship

v) Risk Management Committee and

vi) Investment Committee

The manner in which the evaluationhas been carried out is explained in the Corporate Governance Report. The Board approved the Committ.evaluation made by the Nomination and Remuneration

SEPARATE MEETING OF INDEPENDENT DIRECTORS

In term of requirements of Schedule IV of the Companies Act, 2013 and Regulation 25 of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, a separate meeting of the Independent Directors was held on March 25, 2016 for the Financial Year 2015-16. oftheCompany from April 01, 2015 till

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

b. Performance of the Chairman of the Company, taking into e Executiv accounttheviewsofExecutiveDirectorsandNon-Directors; and

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

MEETINGS OF THE BOARD AND COMMITTEES

The details meetings of the Board and various the number Committees of your Company are set out inof the Company, Corporate Governance Report which forms part of this Report. The intervening gap between the meetings was within the period prescribed under the Companies Act, 2013 and Securities and Exchange Board of India (Listing Obligationsand Disclosure Requirements) Regulations, 2015.

DECLARATION BY INDEPENDENT DIRECTORS

Your Company has received necessary declarations Independent Director that he/she meets the criteria of independence as laid down under the Companies Act, 2013 read with Schedule IV and Rules made thereunder, as well as Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. The Board considered the independence of each of the Independent Directors in terms of the above provisions and is of 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 with Rules made thereunder and Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Company’s policy on Nomination and Remuneration of Directors, t may be decided byKMPs and Senior Management of your Company is 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 Section 197 of 5 of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, is being sent to the members and others entitled thereto both electronically, who have registered their email address with the Company and physically to those, who have not registered their email address with the Company.

Members and other entitled persons who have not registered their e-mail address with the Company may access the full version of the Annual Report on the website of the Company or by physically inspectingthe full version of the Annual Report at the Registered office or Corporate office of the Company on all working days the Company, between 10.00 am and 1.00 pm or by requesting a physical copy by writing to the Company Secretary. disclosure is 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 as the Auditors of the Company and therefore resigned upon the conclusion of the ensuing Annual General Meeting.

The Company has received a Special Notice under Section 140 (4) read with Section 115 of the Companies Act, 2013 from M/s Opelina Finance and Investment Limited in the capacity of a member of the Company proposing a resolutionat the ensuing Annual General Meeting for appointment 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, Chartered Accountants. M/s Lodha & Co., Chartered Accountants, have agreed to and given their consent 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 and substantially contributed to the efforts of the Company towards strengthening the internal controls, processes and procedures in line with expanding size of operations. The Board places on record its deep sense of appreciation for the services rendered and guidance given by them as the Statutory Auditors of the Company. In terms of Section 139(2) of the Companies 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 five consecutive years from the conclusion of the Thirty Seventh Annual General Meeting up to the conclusion of the Forty Second Annual General Meeting, subject to ratification at each Annual General Meeting, at shareholders. remuneration Comments/Qualifications of the Auditors 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 its CompaniesAct,2013readwithRule judgement dated August 25, 2014 read with its order dated September 24, 2014 had cancelled the allocation of certain Coal Blocks, which were allotted from year 1993 onwards through Screening directed the Coal block allottees to pay an additional levy of Rs 295 per MT on the coal extracted from the operational mines. The review petition filed by the Company and its subsidiary company JPL before the Hon’ble Supreme Court of India against the order challenging cancellation of coal blocks and imposing additional levyof Rs 295 per MT on coal extracted with retrospective effect, is still pending.

In the meanwhile, the Company has paid Rs 3,267.43 crore The aforesaid (including Rs 1,185.20 crore paid by its subsidiary company JPL) under protest on the Run of Mine coal extracted from the operational mines from the commencement of coal mining in the year 1993 to September 30, 2014. Out of the said amount, on the basis of the legal advice obtained by the Company that additional levy of Rs 295 per MT is payable only on coal extracted and is not payable on shale, rejects and ungraded middlings, an amount of Rs 1,911.64 crore (including Rs 1,103.87 crore related to its subsidiary company JPL) computed on coal extracted excluding shale, rejects and ungraded middling has been shown an exceptional item in the Statement of Profit and Loss. The balance amount of Rs 1,355.79 crore (including Rs 81.33 crore related to its subsidiary company JPL) being additionallevy of Rs 295 per MT on shale, rejects and ungraded middlings has, accordingly, been shown as recoverable. On the same principle, the Company has accrued additional levy of Rs 178.18 crore (including Rs 85.78 crore payable by its subsidiary company JPL) based on coal extracted excluding shale, rejects and ungraded middling from October 1, 2014 to June 30, 2015.

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

B. The Board is of the view that as of now there is no requirement for adjustment to the carrying value of investment made in mining assets by the Company and difference, if any 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 for auditingthe 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 and Auditors) Rules 2014, appropriate resolution seeking your ratification of the remuneration of M/s Ramanath & Co., (FRN 00019), Cost Accountants, is included in the Notice convening 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 the Financial Year 2015-16. The Secretarial Audit Report is annexed herewith as Annexure - C to this Report. The Secretarial Audit Report does not contain any qualification, reservation or adverse Directors has appointed M/s RSMV & Co. Company Secretaries for the 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 and evaluates business risks and opportunities The Company recognises that these risks need to be managed and mitigated to protect the interest of the shareholders and stakeholders, to achievebusinessobjectives and enable sustainable growth. The risk management framework is aimed at effectively mitigating the Company’s various business and operational through strategic actions.Risk management is embedded in our critical and processes. The risks business activities, are reviewed for change in the nature and extent of the major risks identified since the last measures for risk and future action plans.

Pursuant to the provisions of the Companies Act, 2013 and Securities and Exchange Board of India (Listing Obligations Disclosure Requirements) Regulations, 2015, the Company has a Risk Management CommitteeoftheBoard,whichlooksafter the identification of risks and their mitigation planning. More about this Committee and its role and responsibilities are givenin of total 59 the Corporate Governance Report.

INTERNAL FINANCIAL CONTROLS

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

CORPORATE SOCIAL RESPONSIBILITY (CSR)

The Annual Report on the Corporate Social Responsibility (CSR) required under Sections 134 and 135 of the Companies Act, 2013 read with Rule 8 of the Companies (Corporate Social Responsibility Policy) Rules, 2014 and Rule 9 of the Companies (Accounts) Rules, 2014 is attached 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 future operation during the year under review except the following significant orders passed by the Regulators/courts in previous year.

De-Allocation of Coal Blocks

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

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

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

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

Despite the aforesaid challenges faced by the Company during the previous year, your Company is fully geared to cater to the coal requirement of its entire planned generation through Coal Linkage and e-auctionetc. The Board of the Company is sanguine about winning more 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, the applicable accounting standards and Schedule III to the Companies Act, 2013, have been followed and there are no material departures from the same;

(b) that the Directors has selected such accounting policies and applied them consistently and made judgements and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of your Company as at March 31, 2016 and of 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 adequate accounting records in accordance with the provisions of Companies Act, 2013 for safeguarding 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 by the Company and that such Internal Financial Controls are adequate and were operating effectively; and

(f) that proper systems to ensure compliance with the provisions of all applicable laws were 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 and Disclosure Requirements) Regulations, 2015, Business Responsibility Report describing the initiatives taken by Company from environmental, social and governance perspective is attached as a part of the Annual Report.

Management Discussion and Analysis Report

Management Discussion and Analysis Report for the year under review, as stipulated under Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) 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 exchange earnings and outgo as 134(3)(m) read with Rule 8 of the Companies (Accounts) Rules, 2014 is annexed herewith as Annexure - G to this Report.

Certificate on Corporate Governance

The Company is committed to maintain the highest standards Corporate Governance and adhere to the Corporate Governance requirements set out by Securitiesand Exchange Board of India. The Company has also implemented several best Corporate Governance practices as prevalent globally. The report on Corporate Governance as stipulated under the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 forms an integral part of this Report. The requisite from M/s RSMV & Co., Company Secretaries in practice compliance with the conditions of Corporate Governance is annexed herewith as Annexure -I to this Report.

Whistle Blower and Vigil Mechanism

Your Company has formulated a vigil mechanism in place namely, Group Whistle Blower Policy (GWB) to deal with instances of unethical behaviour, actual or suspected, fraud or violation of Company’s code of conduct or ethics policy. The details of policy is explained in Corporate Governance Report and also uploaded on Company’s website under the 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, the Rules made thereunder,yourCompanyhasconstituted Internal Complaints Committee having designated 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 dated September 02, 2015 issued SEBI (Listing Obligations and Disclosures Requirements) Regulations, 2015 with the aim to consolidate and streamline the provisions of Listing Agreement for different segments of Capital Markets to ensure better enforceability. The said regulations were effective from December 01, 2015. Accordingly, all listed entities were required to enter into the Listing Agreement within six months from the effective date. The Company entered into Listing Agreement with BSE Limited and National Stock Exchange of India Limited in the month of January.

Both these Stock Exchanges have nationwide terminals and therefore, shareholders/Investorsarenotfacinganydifficultyin trading in the shares of the Company from any part of the country. The Company has paid annual listing fee for the Financial Year 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 in accordance with the provisions of Section 92 of the Companies Act, 2013 read with the Companies (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 & Analysis Report describing the Company’s objectives, expectations or forecasts may be forward-looking within the meaning of applicable Securities Laws and Regulations. Actual results may differ materially from those expressed in the statement. Important factors that could influence the Company’s operations include global and domestic demand and supply conditions finished goods, input availability and prices, changes in Government Regulations,tax laws, economic developments within the country and other factors such as litigation and industrial relations.

ACKNOWLEDGEMENTS

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

The Directors wish to place on record their appreciation for the sincere services rendered by employees of the Company at all levels. Your Directors also wish to place on record their appreciation for the valuable co-operation and support received from the Government of India, various State Governments, the Banks/Financial Institutions and other stakeholders such as, shareholders, customers and suppliers, among others. The Directors also commend the continuing commitment and dedication of the employees at all levels, which has been sellingpricesof critical for the Company’s success. The Directors look forward 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) of the Companies

Form for disclosure of particulars of contracts/arrangements entered into by the company with related parties referred to in sub-section(1) certain arm’s length ofsection 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 2,658 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 the Companiesread with Rule 5(1) of Act, 2013 the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014

(i) Ratio of the remuneration of each Director to the median remuneration 2015-16, the percentage increase in remuneration of Chief Executive Officer, Chief Financial Officer, other 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 1,317.20 - 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 2,525.84 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 Director and Group Chief Financial Officer w.e.f. May 27, 2015 and February 13, 2016 respectively. Remuneration details of Mr. Rajeev Bhadauria, Wholetime Director includes remuneration paid during April 01, 2015 to May 26, 2015.

* Disclosures with respect to percentage increase in remuneration have not been made due to following reasons: - there is no increase in remuneration of Mr. Naveen Jindal, Chairman, Mr. Ravi Uppal, Managing Director & Group CEO, Mr. Dinesh Kumar Saraogi, Wholetime Director and Mr. Jagdish Patra, VP & Group Company Secretary of the Company during 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 6,842 and the median remuneration wasRs 6.08 Lakhs. Average of remuneration of employees excluding above Directors and KMPs has increased by 7% as the Company had set an aggressive business targets and expansions for the year ahead. The average increase was also in line with the projected increase, approx. 10.4% average increase in salaries across engineering/manufacturing organizations.

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

(iv) No employee’s remuneration for the year 2015-16 exceeded the remuneration of any 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 part of the Annual Report.

(vi) Market Capitalisation wasRs 5512.29 crore and PE ratio as at March 31, 2016 as against 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 Chairman is linked with Company performance. In case of other key managerial personnel(s) the same is linked with Company performance and Individual performance.

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

Employed throughout the year and were in receipt of remuneration of not less thanRs 60,00,000 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 1,25,39,640 BA, CA-Final. 01-03-1989 27 Delux Fabrics Pvt. Ltd. Account Manager
2 Damodar Mittal 49 Executive Vice President 87,45,201 B.E / Mechanical 30-06-1989 31 Jindal Strips Ltd. -
3 Rohit Choudhri 47 Vice President 68,42,897 PG Foreign Trade, Master Mgt Studies 16-06-2008 25 Concept Hr Director
4 Neeraj Agrawal 44 Associate Vice President 63,02,412 B.E. (Mech) 15-09-2007 23 Kone Elevetors India Pvt. Ltd. Business Manager
5 Ajay Sehgal 47 Associate Vice President 86,11,928 CA, CS, B.Com 08-12-2007 27 Samtel Color Ltd. Director-Finance
6 Anand Goel 63 Chief Advisor 2,29,84,469 B.Com 01-09-1976 40 - -
7 Rajesh Bhatia 49 CEO-Global Ventures 2,07,42,328 B Com, CA 29-04-2008 28 Oswal Chemicals & Fertilisers Director-Finance
8 Anand Prakash 52 Associate Vice President 62,49,089 BE 22-03-2010 29 Adhunik Steel Ltd Vice President
9 Deb Prasad Ghosh 60 Executive Vice President 86,74,722 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 69,07,683 B. Sc., MBA 21-06-2010 36 Jaypee Spa Infocom Sr. Vp- Marketing
11 Kapil Rawat 55 Executive Director 90,58,028 BE (Civil) 04-08-2010 31 "Words Window International & Logistics Pvt Ltd" President
12 Hervinder Singh 55 Executive Vice President 80,34,870 BE Mining 27-12-2010 34 Essar GM-EMRL
13 Mariam J Carter 56 General Manager 95,81,824 MBA, M.A. 11-07-2011 - - -
14 Susheel Kumar Mehrotra 52 Executive Vice President 73,91,723 B.Com Hons,CA 09-08-2011 30 Dharampur Sugar Mills Financial Controller
15 Hemant Kumar 48 Executive Vice President 87,86,147 B.Com Hons, ICWA, CA 20-08-2010 28 Omaxe India President-Finnace
16 Valluri Venkata Madhava Ram 56 Executive Vice President 72,24,305 B.E. Mechanical 07-10-2011 27 KSS/ Kazohoy Srevice Project Director
17 Manish Kharbanda 46 Executive Director 1,35,51,780 MBA-HR, M.SC. Geology, LLB 30-09-2011 24 MTS Head HR
18 Virendra Kumar Mehta 64 Director-Sales & Marketing 1,40,15,496 B.Sc. Hons, MA (Eco) 01-12-2011 41 SAIL Executive Director
19 Suresha G 45 Vice President 62,61,824 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 67,68,332 B.E (Metallurgy) 28-01-2013 25 Kalyani Steels Ltd Sr. VP
21 Nirmalendu Purohit 50 President 84,04,488 B.Tech. (Metallurgy) 16-04-2013 22 Hospet Steels Chief Operating Officer.
22 Peter Johannes Erasmus 65 General Manager 98,64,802 Project Manager Technical Certificate, N3 & N4 (Fitter & Turner) 28-05-2013 43 Durab Engineering Engineering Manager
23 Kapil Dhagat 54 Executive Vice President 67,26,400 B Tech Mining 10-07-2013 29 Bhushan Steel Limited Sr. General Manager
24 Subrahmanya Shanbhogue Tantradi 56 Executive Vice President 61,58,115 B.E. Mechanical 09-08-2013 34 ESSAR Vice President
25 Anand Mohan Shukla 53 Executive Vice President 91,50,584 PG Diploma(Personal Mgmg & Human Resorce) & B.Com. 13-09-2013 29 Dodsal Group Global Director.
26 Parikshit Oberai 45 Vice President 61,92,649 B. Com, CWA 22-10-2013 21 ACC Limited Vice President
27 Ashish Jasoria 47 Vice President 79,38,940 B Com (H), ICAI, ICWAI 17-12-2013 16 MCCS VP,CFO
28 Ashish Aggarwal 36 General Manager 61,22,327 B.Com, Chartered Accountant 04-03-2014 15 ICICI Bank AGM
29 Pankaj Gautam 63 Executive Director 1,38,99,747 BE Electrical, PGDBM- Business Managemnt 03-03-2014 42 Visa Steel Limited JMD & CEO
30 Gaurav Wahi 43 Vice President 65,98,460 B.E. (Mech.), P.G.D.B.M. (Corporate Communications) 23-04-2014 19 PE Cube Partner
31 Miniya Chatterji 37 Vice President 61,66,723 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 77,61,992 Level 4 - 2002 19-06-2014 38 Sasol Level 4 SPC
33 Sandeep Kumar Singhal 59 Executive Vice President 71,34,372 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 69,82,453 BE-Computer Engg. 01-10-2014 26 Aditya Birla Group VP-IT
35 Bharat Rohra 59 President 1,08,97,800 B. Tech. (Civil Engineering) 01-03-2015 36 Universal Infra Sr. V.P.
36 Ranjit Budhai 57 Executive Vice President 2,37,69,065 MBA 12-03-2015 35 Sasol Synfuels Sr. Manager

Employed part of the year and were in receipt of remuneration of not less thanRs 5,00,000 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 9,28,941 Bcom & LLB 27-01-2014 18 Bharat Aluminium Company Ltd. General Manager
2 Naresh Pattanaik 45 Sr Dy Gen 8,02,762 - 01-05-2012 - - -
Manager
3 V Karthikeyan 51 General Manager 11,71,079 M.Sc. 17-03-2004 24 Bata India Ltd. -
4 Moreshwar G Borkar 44 General Manager 6,43,676 B.E. 16-10-2012 22 Welspun Corp Ltd. GM
5 Susanta Kumar Pattnaik 50 Dy General Manager 5,87,465 - 19-02-2013 29 AIG -
6 Seelam Vasudev Rao 59 Executive Director 44,34,358 BE-Mech, M.Tech 16-01-2012 35 Kirbi Building Systems Managing Director
7 Debasis Maiti 42 Dy General Manager 6,61,558 B.E. 23-08-2011 20 Ingenero Specialist
8 Saroj Kumar Mahapatra 55 Vice President 19,15,404 Ph.D. - HR Planning 18-04-2011 34 Posco India AVP
9 Ravindra Kumar Khaitan 59 General Manager 8,08,932 Bcom & LLB 01-04-2011 12 Hscci India Architecture
10 Manoj Kumar Singh 52 General Manager 12,07,949 ME 18-03-1996 28 Tata Iron & Steel Co. -
11 Maneesh Shankar Mathur 47 Dy General Manager 7,41,807 Intermediate 20-07-2011 21 Yansa B Process Trainer
12 Sudip Kumar Dwivedi 42 Dy General Manager 7,70,853 M.Sc. 03-09-2001 26 Parinika Harvest Floratech Ltd. -
13 Saroj Kumar Jain 61 Executive Director 34,45,861 Industrial Engg Grad- Metallurgy Engg, PG Dip Mgt 22-05-2009 39 Essar Steel Limited VP-Projects & Technology
14 Parveen Brar 53 General Manager 18,88,213 B.Sc. 08-08-2011 32 Jayasl Neco GM
15 Randeep Bhardwaj 44 Senior Manager 12,65,369 BA 19-07-2010 10 Barclay’s Shared Services Manager
16 Karuna Mahajan 36 Assistant Gen Manager 11,66,193 PG Diploma in Management 26-12-2014 9 Usha International Ltd. Department Manager
17 Gopal Singh Rathore 54 Associate Vice President 14,42,311 Bcom & CA Final 09-08-2010 29 JSIS. Oman Sr. Genaral Manager
18 Arshad Mohammed Sayed 54 Associate Vice President 14,95,342 B.Sc (Engg.) / Mechanical 31-08-2010 30 Indalco Industries Ltd. -
19 KrishnaKumar YV 44 Vice President 20,61,701 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 57,16,365 B.Com, LLB 22-04-2011 35 Bhatia Interntional Sr. VP-Corporate Affairs
21 Hari Easwaran 56 Associate Vice President 27,31,283 BSc. Physics, B.Tech 16-07-2013 34 Punj Lloyd Ltd Sr. General Manager
22 Kumar Manish 48 General Manager 25,92,372 MA, M.Phil 01-11-2014 23 Bahwan Building Materials LLC Head Steel & Basic Materials
23 Nicolaas Jacobus Brand 49 Assistant Gen Manager 32,30,425 - 14-05-2012 - Siq Survey -
24 Mias Oliver 49 Assistant Gen Manager 37,27,965 - 14-05-2012 - Sasol Technologies -
25 Velidi Shiva Kumar 42 General Manager 28,52,046 BE 01-01-2007 14 Hari Machines Ltd -
26 Prakash Tarey 60 Executive Vice President 43,16,831 BE 28-12-2010 - - -
27 Manoj Kumar Fakey 47 Associate Vice President 40,06,217 B.Com, ICWAI (Inter) 10-12-2013 - Ranbaxy lab Limited GM
28 Sunil Sharma 52 Vice President 50,51,163 BE Metallurgy,MBA- Mktg. 09-12-2010 26 Essar Steel Head - Coated Products
29 Pradeep Tandon 53 Executive Vice President 67,50,303 MBA, MA 13-01-2007 35 Essar Steel, Raipur General Manager(Corporate Affairs)
30 Ashish Kumar 46 President 97,09,541 B.E. (Indus) 20-04-2007 23 Reliance Industries limited Procurement & Contract
31 Lewis Stone 49 Assistant Gen Manager 91,26,159 CHIETA-NQF-4 / Production 14-05-2012 27 Sasol Technologies -
32 Neal Strydom 38 Assistant Gen Manager 83,13,778 Diploma / Drawing 01-10-2013 19 Sasol Technologies -
33 Mohammad Asif 52 Associate Vice President 68,95,204 BE-Civil, Diploma- Engineering 19-07-2011 27 Mesc LLC Projects Manager
34 Pankaj Garg 49 Vice President 56,48,231 B Com, CA 03-12-2013 21 Surya Roshni Limited Vice President
35 Roopali Mehra 41 Executive Vice President 1,06,62,588 Eng Hons,Dip in Business Admn,Middle Mgt Programe 18-09-2001 21 " Top Source Technologies Pvt Limted" Manager
36 Chanchal Kumar Mitra 59 Vice President 69,18,873 B.Tech, Ist Class Mines Manager 18-02-2010 36 Coal India Ltd GM
37 Prakash Tewari 54 Vice President 75,55,403 BA, M Sc., MDBA 07-09-2012 16 Tata Power Head-CSR & R&R

Notes:

1. Remuneration includes basic salary, allowances, leave travel allowances, company’s contribution to provident fund and superannuation fund, leave encashment, gratuity, reimbursements, monetary value of perquisites, share in net profit/incentives on net profit, wherever applicable, target variable pay etc. Target variable pay for Financial Year 2014-15 was paid in Financial Year 2015-16 and is included in the above details.

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

3. All appointments are/were contractual in accordance with terms & conditions as per 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 the Board 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 (Appointment and 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 statutory provisions and the adherence to good corporate practices by Jindal Steel & Power Limited (hereinafter called the Company). Secretarial Auditwasconductedin of Insider Trading) Regulations, manner that provided us a reasonable basis for evaluating the corporate conducts/statutory compliances and expressing our opinion thereon.

Based on our verification of the books, papers, minute books, forms and returns filed s, agents officer alsotheinformation providedbytheCompany,its and authorized representatives during the conduct of secretarial audit, We hereby report that in our opinion, the Company has, during the audit period covering the Financial Year ended on March 31, 2016 complied with the statutory provisions listed hereunder and also that the Company has proper Board-processes and compliance-mechanism in place to the extent, in the manner and subject to the reporting made hereinafter:

We have examined the books, papers, minute books, forms and returns filed and other records maintained by the Company for the financial year ended on March 31, 2016 according to 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 made thereunder;

(v) The following Regulations and Guidelines prescribed under the Securities and Exchange Board of India Act, 1992 (‘SEBI Act’):- (a) The Securities and Exchange Board 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 Disclosure Requirements)Regulations, 2009;

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

(e) The Securities and Exchange Board of India (Issue and Listing of Debt Securities) Regulations,2008;

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

(g) The Securities and Exchange Board of India (Listing Obligations and Disclosures Requirements) 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 Act, 1961 (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 Boilers Act, 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 General Laws excluding Taxation Laws.

During the period under review the Company has complied with the provisions of the Act Rules 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 the National

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

We further report that

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

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

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

There are adequate systems and processes in the Company commensurate with the size and operations of the company to monitor and ensure compliance with applicable laws, rules, regulations and guidelines.

Further, we report that there were no other instances having a major bearing on the company’s affairs, under above referred laws, rules, regulations, guidelines, standards 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 FINANCIAL YEAR 2015-16

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

Brief of the Company’s CSR Policy:

The Company strongly believes that sustainable community development is essential for harmony between the community and the industry. The Company endeavours to make a positive contribution especially to the underprivileged communities by wide range of socio-economic, educational and health initiatives.

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

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

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 of Independent 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 the Financial Year: Rs 26.71 crore b. Amount unspent, if any: Nil c. Manner in which the amount 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 Augustus Prison & Social Welfare Services Athgarh, NRDC Sonepur, DAV College Managing Committee, SAAKH Foundation Ranchi, Ramgarh Football Association, SARDA Ramgarh, STEP by STEP Institute Ramgarh, JEWS Raigarh, Adivasi Vikas Samiti, Joda.

RESPONSIBILITY STATEMENT

The Responsibility Statement of the Health, Safety, CSR and Environment Committee of the 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

17,816

11,750

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 17,816 Mr. Ravi Uppal 11,750
(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 17,816 Rs 11,750
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 Earnings and 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 Eight Different Bays in MLSM. Energy Saving:744000 kWh/Year.

6. Furnace Charging Hydraulic Automatic Pump Stoppage in MLSM. Energy Saving:74160 kWh/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 in the year 2015-16 due to increased production by capacity enhancement (Sinter Plant).

Angul

9. Electrical power saving of 2,715 MWh/year is achieved by keeping one additional pump out of operation. However, the same has been kept as standby.

10. Trimming down of make up water pump. Electric power saving of 1,200MWh/year is achieved.

11. Modification of Primary Cooling Circuit Pump P2& P3 (510& 125 kW) at SMS has been implemented effectively on all 6 pumps. Electrical power saving of 2142MWh/ year and easy operation of the Pumps is achieved after modification. measures adopted across 12. Power Plant & Steel Plant have separate Raw Water Pumps (315 & 180 kW) : As per present condition, only power plant RW Pump has been kept in operation (meeting the requirement of both the plants) with lesser power consumption (from 285 to 230 kW) due to reduction in line pressure by taking a branch and valves installation in interconnected lines resulting power saving of 945MWh/year.

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

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

15. Process Boiler Compressor (2x132 kW): As centralized Compressors (3x1700 kW) runs continuously requirements of entire Plant and requirement of Process Boiler is considerably less,hence a branch line from main supply header has been taken and operation of less efficient Compressors at saving of 1256 MWh/year is achieved by keeping spare of the Compressors.

16. 1-Stage impeller removed out of 6, from condensate extraction pump (315 kW) in power plant for optimization of supply pressure. Modification is effectively implemented in 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 Plant resulted minimisation of blackout, production loss & disturbances.

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

19. Oxygen Plant Cooling Tower: Available flow of CW Pumps (670kW) was higher, so optimized 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% of the rated capacity at same power consumption. Electrical power saving of 2500 MWh/month is achieved for additional nitrogen production.

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

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

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

23. Intake Water Pump House (6 x 2.2 MW): As per original design, power consumption of motors was higher than the rated capacity, so trimmed-down the Impellers for optimal operation 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 process boiler. Reduction in DM water consumption by 1500 Ton/day and electrical power saving 462 MWh/year is achieved.

25. Compressed Air Station-1: CT Pumps (75 kW) were Hence, trimmed- running in throttled 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 reduce finesgeneration 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 in power plant resulted power saving of 724.9 MWh/year.

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

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

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

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

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

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

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

35. Solar DaylightinstalledinED-Officetoutilized renewable (solar) energy to light-up office 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/NESCO resulting intosavingof Rs 78,00,000/- per month.

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

38. Auto Day Night switching system introduced in furnace area of Pellet Plant 2 reduces 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 inside the plant premises for the conservation of

42. Monitoring of individual area wise and building wise effectiv conservation.energyconsumptionfor

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

Patratu

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

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

46. Energy management system has been implemented by installing KWH meters to reduce the 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 of energy 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 two blowers in earlier burner design resulting consumption.

52. One combustion blower and two booster pump has been installed with A.C. drive control 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 possible by combining loads of Heat treatment furnace located in different shops. This helped to reduce fuel consumption.

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

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

57. Steel Melting carried out during night shifts since power consumption rates are less 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 energy conservations 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 same is 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 the same 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:inreduction Rs 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 of Pigcasting

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

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

Patratu:

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

b) The benefits derived like product improvement, cost reduction, product development or import substitution:

Raigarh

Rail Head Hardened System

Product Improvement: Head-hardened rails can withstand increased wear from trains travelling faster, at greater frequencies and with heavier cargo. These rails are used for tracks that carry heavy loads, for acceleration and deceleration sections of railway lines, for railway switches, crossings or expansion joints, and in small-radius curves.

Product Development Head Hardened Rail Manufactured with steel grades - 1080 HH, 880 HH

Flatness Measurement Gauge

Product Improvement FMG measures the horizontal & vertical flatness of the rail head by means of the light section measurement method. It’s a non-destructive quality testing 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 Schlatter Industries, Switzerland uses highly dynamic joining method allowing a large number of welds to be performed quickly, accurately, cleanly, economically and with reproducible quality.

Plate Mill

Product quality improvement in terms dimensional tolerances, shape, surface finish and metallurgical 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 done successfully & supplied.

Downtime 2. Development of ASTM A517 Grade F/ EN 10025 -S 690 Of Turbo-Blower In Case 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 Shipping grade 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 dish forming facility for higher thickness jobs and thereby avoid outsourcing and related costs.

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

3. Reduced diesel consumption in heat treatment furnace from about 55 litres / ton to 36 litres/ ton through energy audit.

Product Development:

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

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

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

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

Patratu:

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

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

Raigarh: Auto Casting

a) The detailsoftechnologyImported-AutoCastingstart in Beam blank and Bloom in Combi Caster at SMS-2. b) Supplier - RAMON SCIENCE & TECHNOLOGY CO LTD, China c) The year of import 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, It is 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 on 31.08.2015

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 of the rail head supplied by Next Sense, Austria

• Up gradation of Flash Butt Welding by Original Equipment manufacturer Schlatter Industries, 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 mechanical, hydraulic, 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 the reasons 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 gasification Process, followed by cooling and purification of gas. The purified gas is boosted to higher pressure using booster Pumps & is then fed to the reheating furnaces. The capacity of the Plant is 80,000Nm3 of gas/hour. There are 10 dia. Each. The input coal has a GCV of 4600kCal/kg and the output gas has a CV of 1,400 kCal/Nm3.This Plant is basedonzeroeffluent 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 the reasons 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, 45C8, En18D, MSL-IB, En15A, 27MCB5,HC61/65(NVD), 1527J-VT, En18D, E550BR, JSL-7B, S35C-N, Grade F-65, ISMT 110, ISMTV/20MNV6,JSL36, 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 heavy thickness pressure vessel plates in 100 mm thickness with impact guarantee at -46 degree centigrade: ASME SA 516grade 70

2. NewSection

2.a: RUBM: Angle 250x250x 20 mm, UIC-60 (Long Rail) 260 Mtrs, UC 152x152x 51 kg/m, W 14x14.5 inch (109 lbs/ft), UC 203x203x 37 kg/m 2.b: MLSM: UB_254x146, AL_150x150x19, UB 254x146 (31Kg/Mtr), UC_152x152 (23,30&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 ready to existing valve

5. Use of solid wastes (DRI accretion and SMS Slag) in Submerged Arc Furnace for Silico manganese 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 successfully developed variety of new products/ grades/ sections, thereby increasing its product band width to meet customer requirements.

2. Installed at all circulation ladles at SMS 2. The result is satisfactory and till date 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 reduce Sp. Power consumption of SiMn.

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

C) Future Plan of Action:

1) Use of L.C. Castable as safety lining for ladle for energy saving & to maximize ladle 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 raw material 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) for developing Cementitious LSA(Ligno-Silico-Aluminious) Material for Non-Structural Applications.

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

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