Jindal Steel & Power Ltd


BSE: 532286 | NSE: JINDALSTEL | ISIN: INE749A01030 
Market Cap: [Rs.Cr.] 24,945 | Face Value: [Rs.] 1
Industry: Steel - Sponge Iron

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Auditor's Report

Independent Auditors

To the Board of Directors of Jindal Steel & Power Limited

We have audited the accompanying financial statements of Jindal Steel & PowerLimited ('the Company') which comprises the Balance Sheet as at 31st March, 2013,andthe Statement of Profit and Loss and the Cash Flow Statement for the year then ended, andNotes to the Financial Statements comprising of a summary of significant accountingpolicies and other explanatory information.

MANAGEMENT'S RESPONSIBILITY FOR THE FINANCIAL STATEMENTS

Management is responsible for the preparation of these financial statements that give atrue and fair view of the financial position, financial performance and cash flows of theCompany in accordance with the Accounting Standards referred to in subsection (3C) ofsection 211 of the Companies Act, 1956 ('the Act'). This responsibility includes thedesign, implementation, and maintenance of internal controls relevant to the preparationand presentation of the financial statements that give a true and fair view and are freefrom material misstatements, whether due to fraud or error.

AUDITOR'S RESPONSIBILITY

Our responsibility is to express an opinion on these financial statements based on ouraudit. We conducted our audit in accordance with the Standards on Auditing issued by theInstitute of Chartered Accountants of India. Those Standards require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the financial statements. The procedures selected depend on the auditor'sjudgment, including the assessment of the risks of the material misstatement of thefinancial statements, whether due to fraud or error. In making those risk assessments, theauditor considers internal control relevant to the Company's preparation and fairpresentation of the financial statements in order to design audit procedures that areappropriate in the circumstances. An audit also includes evaluating the appropriateness ofaccounting policies used and reasonableness of the accounting estimates made bymanagement, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion.

OPINION

In our opinion and to the best of our information and according to the explanationsgiven to us, the said accounts give the information required by the Act, in the manner sorequired and give a true and fair view in conformity with the accounting principlesgenerally accepted in India:

i) In the case of the Balance Sheet, of the state of affairs of the Company as at 31stMarch, 2013;

ii) In the case of Statement of Profit and Loss, of the profit of the Company for theyear ended on that date; and

iii) In the case of the Cash Flow Statement, of the cash flows for the year ended onthat date.

EMPHASIS OF MATTER

We draw attention to sub note (a) of Note 4 regarding accounting for sales tax includedin sales price of products sold out of sales tax exempted unit under Sales Tax Subsidy/Capital Reserve Account in the circumstances as explained in the Note. Our opinion is notqualified in respect of this matter.

REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS

1. As required by the Companies (Auditor's Report) Order, 2003 ('the Order') issued bythe Central Government of India in terms of section 227 of the Act, we give in theAnnexure a statement on the matters specified in paragraphs 4 and 5 of the Order;

2. As required by section 227(3) of the Act, we report that:

a. We have obtained all the information and explanations which to the best of ourknowledge and belief were necessary for the purpose of our audit;

b. In our opinion proper books of account as required by law have been kept by theCompany so far as appears from our examination of those books;

c. The Balance Sheet, Statement of Profit and Loss and Cash Flow Statement dealt withby this Report are in agreement with the books of account;

d. In our opinion, the Balance Sheet, Statement of Profit and Loss and Cash FlowStatement comply with the Accounting Standards referred to in sub-section (3C) of section211 of the Act;

e. On the basis of written representations received from the Directors as on 31stMarch, 2013, and taken on record by the Board of Directors, none of the Directors isdisqualified as on 31st March, 2013, from being appointed as a Director in terms of clause(g) of sub-section (1) of section 274 of the Act.

For S. S. KOTHARI MEHTA & COMPANY
Chartered Accountants
Firm Registration No. 000756N
K. K. Tulshan
Place : New Delhi Partner
Date : 25th April, 2013 Membership No. 85033

Annexure

Re: Jindal Steel & Power Limited

Referred to in clause 1 of paragraph on 'Report on Other Legal and RegulatoryRequirements of our report of even date,

1. (a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.

(b) The Company has a phased programme of physical verification of its fixed assetswhich, in our opinion, is reasonable having regard to the size of the Company and thenature of its assets. As part of this programme, the management has physically verifiedcertain fixed assets during the year. Discrepancies noticed on such verification ascompared to book records were not material, and have been properly adjusted in the booksof account.

(c) Fixed assets disposed off during the year were not substantial so as to impactgoing concern status of the Company.

2. (a) As explained to us, physical verification has been conducted by the managementat reasonable intervals in respect of finished goods, stores and spare parts and rawmaterials. Further, stocks in the possession and custody of third parties and stock intransit as at 31st March, 2013 have been verified by the management with reference toconfirmation or statement of account or correspondence with the third parties orsubsequent receipts of goods. In our opinion, the frequency of such verification isreasonable.

(b) The procedures for the physical verification of inventories followed by themanagement are, in our opinion, reasonable and adequate in relation to the size of theCompany and the nature of its business.

(c) In our opinion, the Company is maintaining proper records of inventory. Thediscrepancies noticed on physical verification of inventory as compared to book recordswere not material and have been properly dealt with in the books of account.

3. (a) The Company has neither granted nor taken any loans, secured or unsecured, to/from companies, firms or other parties listed in the register maintained under section 301of the Companies Act, 1956. Accordingly, clauses (iii) (a) to (g) of paragraph 4 of CAROare not applicable.

4. In our opinion and according to the information & explanations given to usduring the course of audit, there are adequate internal control systems commensurate withthe size of the Company and the nature of its business with regard to purchase ofinventories and fixed assets and for the sale of goods and services. Further, on the basisof our examination of the books and records of the Company, carried out in accordance withthe generally accepted auditing practices in India, we have neither come across nor havewe been informed of any instance of a major weakness in the aforesaid internal controlsystems.

5. (a) To the best of our knowledge and according to the information and explanationsgiven to us, we are of the opinion that the particulars of contracts or arrangements thatneed to be entered into the register maintained under section 301 of the Companies Act,1956 have been so entered.

(b) In our opinion and according to the information and explanations given to us, thetransactions entered into in pursuance of contracts or arrangements, with whomtransactions exceeding the value of Rupees five lacs in respect of each party have takenplace during the financial year, are at prices which are reasonable having regard to theprevailing market prices at the relevant time where such market prices are available.

6. In respect of fixed deposits accepted from the public in earlier years, theprovisions of section 58A and 58AA or any other relevant provisions of the Companies Act,1956 including the Companies (Acceptance of Deposits) Rules, 1975 have been complied with.We have been informed that no Order has been passed by the Company Law Board or NationalCompany Law Tribunal or Reserve Bank of India or any Court or any other Tribunal in thisregard.

7. In our opinion, the Company has an internal audit system commensurate with the sizeand nature of its business.

8. We have broadly reviewed the cost accounting records maintained by the Companypursuant to the companies (Cost Accounting Records) Rules, 2011 prescribed by the CentralGovernment under section 209 (l)(d) of the Companies Act, 1956 and are of the opinionthat, prima facie, the prescribed records have been made & maintained. We are,however, not required to carry out a detailed examination of the same.

9. (a) In our opinion and according to the information and explanations given to us andaccording to the records of the Company, undisputed statutory dues including ProvidentFund, Investor Education and Protection Fund, Employees State Insurance, Income tax, Salestax, Wealth tax, Service tax, Custom duty, Excise duty, Cess and other material statutorydues, wherever applicable, have been regularly deposited with the appropriate authoritiesduring the year and there are no such undisputed statutory dues payable for a period ofmore than six months from the date they became payable as at 31st March, 2013 except forcollection of Sales tax which have been collected pending receipt of necessarycertificates from the customers.

(b) According to the information and explanations given to us and as per the books andrecords examined by us, there are no dues of Income tax, Sales tax, Wealth tax, Servicetax, Custom duty, Excise duty and Cess which have not been deposited on account of anydispute, except the following which have not been deposited as on 31st March, 2013 onaccount of disputes are given below:

Name of Statute Nature of Dues Amount Rs. in Crore Forum where dispute is pending Amount Deposited Rs in Core Period to which the amount relates
Central Excise and Salt Act, 1944 Excise Duty 0.04 Appellate Commissioner, Raipur NIL FY 11-12 to 12-13
156.69 CESTAT, New Delhi 13.93 FYs 99-13
1.03 Chhattisgarh High Court, Bilaspur NIL FY 94-95 to 07-08
0.10 Madhya Pradesh High Court, Jabalpur NIL FY 95-96
Central Sales Tax Act / Local Sales Tax Act/ Entry Tax Entry Tax 48.46 Deputy Commissioner, Commercial Tax (Appeals), Rourkela 16.06 FY 10-11
0.01 Deputy Commissioner, Commercial tax ( Appeals), Cuttack 0.00 FY 06-07
0.15 Additional Commissioner, Commercial tax ( Appeals), Cuttack 0.02 FY 07-08
Central Sales Tax Act / State Sales Tax/ Value added Tax 0.20 Deputy Commissioner, Commercial Tax (Appeals), Cuttack 0.04 FY 06-07
Local Sales Tax Act/ Entry Tax 0.60 Additional Commissioner, Commercial tax ( Appeals), Cuttack 0.09 FY 07-08
Central Sales Tax Act / Central Sales 0.45 Orissa High Court, Cuttack 0.45 FY 04-05
Local Sales Tax Act/ Tax 0.48 Deputy Commissioner, Commercial Tax, Cuttack 0.14 FY 05-06
Entry Tax 0.24 Deputy Commissioner, Commercial Tax, Rourkela 0.15 FY 06-07
Chattisgarh State Govt. Law Energy Deveploment Cess 183.19 Honourable Supreme Court NIL FY 04-05 to 12-13
Business & Other Construction workers welfare cess Act, 1996 Cess 2.94 Orissa High Court, Cuttack 0.05 FYs 08-13
Income Tax Act, 1961 Income Tax 11.38 Punjab and Haryana High Court NIL AY 04-05
176.86 Income Tax Appellate Tribunal, New Delhi 2.90 AY 05-06 to 08-09
4.75 Commissioner of Income Tax (Appelas), Rohtak NIL AY 05-06 & 07-08

10. The Company does not have accumulated losses as at the end of the financial year.There are no cash losses during the financial year and in the immediately precedingfinancial year.

11. According to the information and explanations given to us and as per the books andrecords examined by us, the Company has not defaulted in repayment of dues to anyfinancial institution or bank or debenture holders.

12. According to the information and explanations given to us, the Company has notgranted any loans and advances on the basis of security by way of pledge of shares,debentures and other securities.

13. The Company does not fall within the category of Chit fund / Nidhi/Mutual Benefitfund / Society and hence the related reporting requirements of the Order are notapplicable.

14. According to the information and explanations given to us, the Company is notdealing or trading in shares, securities, debentures and other investments and hence therelated reporting requirements of the Order are not applicable.

15. The Company has given guarantees against loans taken by others from banks andfinancial institutions; the terms and conditions of such guarantees are not, prima facie,prejudicial to the interest of the Company.

16. In our opinion and according to the information and explanations given to us, theterm loans raised during the year by the Company have been applied for the purpose forwhich the said loans were obtained, where the lenders have stipulated such end use.

17. According to the information and explanations given to us and as per the books andrecords examined by us, on an overall examination of the Balance Sheet of the Company, thefunds raised by the Company on short-term basis have not been applied for long-terminvestment.

18. The Company has not made any preferential allotment of shares to parties andcompanies covered in the register maintained under section 301 of the Companies Act, 1956.

19. According to the information and explanations given to us and on the basis of therecords examined by us, the Company has created necessary securities for the debenturesissued in earlier years.

20. The Company has not raised any money by way of public issue during the years.

21. During the course of our examination of the books and records of the Companycarried out in accordance with the generally accepted auditing practices in India, we haveneither come across any instance of fraud on or by the Company, noticed and reportedduring the year, nor have we been informed of such case by the management.

For S. S. KOTHARI MEHTA & COMPANY
Chartered Accountants
Firm Registration No. 000756N
K. K. Tulshan
Place : New Delhi Partner
Date : 25th April, 2013 Membership No. 85033
   

Peer Comparison

Company Market Cap
(Rs. in Cr.)
P/E (TTM)
(x)
P/BV (TTM)
(x)
EV/EBIDTA
(x)
ROE
(%)
ROCE
(%)
D/E
(x)
Jindal Steel 24,945.26 18.64 2.02 12.48 13.7 10.6 1.56
Gallantt Ispat 895.66 53.40 3.88 7.80 -2.0 3.7 1.03
Tata Sponge Iron 735.04 10.49 1.15 1.48 14.1 22.0 0.00
Monnet Ispat 599.71 2.82 0.23 12.00 10.1 6.1 1.95
Orissa Sponge 193.05 0.00 5.95 0.00 0.0 0.0 3.32
MSP Steel & Pow. 152.41 13.52 0.28 7.00 3.8 8.1 1.76
Lloyds Metals 102.84 0.00 0.83 4.11 1.6 6.7 0.24
Ankit Met.Power 100.11 32.80 0.17 5.31 10.8 11.5 1.51
Jai Balaji Inds. 99.04 0.00 0.20 0.00 0.0 0.0 3.67
Nova Iron &Steel 62.52 7.24 2.65 20.36 0.0 0.0 2.90
Bihar Sponge 27.08 0.00 0.24 0.00 0.0 0.0 0.00
S.A.L Steel 19.20 0.00 0.20 26.86 0.0 0.0 1.85
Suraj Products 13.11 18.55 0.49 2.98 5.0 9.8 1.37
Kumar's Metallur 7.58 150.00 0.33 118.90 0.1 0.6 2.77
Vaswani Inds. 6.02 0.00 0.07 0.00 -13.1 -6.1 0.55

Futures & Options Quote

 
Expiry Date
272.15 1.50  (0.6%)
Instrument: FUTSTK
Expiry Date: 24 Apr 2014
Open Price: 0.00
Average Price: 0.00
No. of Contracts Traded: 0
Open Interest: 7,689,000
Underlying: JINDALSTEL
Market Lot: 1000
Previous Close: 270.65
Day’s High | Low: 0.00 | 0.00
Turnover (Cr.): 0.00
Open Int. Change: 0.00 (0.0% )
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Key Information

Key Executives:

Naveen Jindal , Chairman & Wholetime Director  

Ratan Jindal , Director  

Anand Goel , Joint Managing Director  

R V Shahi , Director  


Company Head Office / Quarters:
O P Jindal Marg,
,
Hisar,
Haryana-125005
Phone : 91-1662-222471-84
Fax : 91-1662-220476
E-mail : investor.grievance@jindalsteel.com
Web : http://www.jindalsteelpower.com
Registrars:

No data found

Fund Holding


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