Jindal Steel & Power Ltd

BSE: 532286 | NSE: JINDAL STE | ISIN: INE749A01030 
Market Cap: [Rs.Cr.] 22,328.23 | Face Value: [Rs.] 1
Industry: Steel - Sponge Iron

Auditor's Report
Independent Auditors

To The Members of Jindal Steel & Power Limited

REPORT ON THE FINANCIAL STATEMENTS

We have audited the accompanying financial statements of Jindal Steel & PowerLimited ('the Company') which comprises the Balance Sheet as at 31st March, 2014 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') read with the General circular 15/2013dated 13th September, 2013 of the Ministry of Corporate Affairs in respect of section 133of the Companies Act, 2013. This responsibility includes the design, implementation, andmaintenance of internal controls relevant to the preparation and presentation of thefinancial statements that give a true and fair view and are free from materialmisstatements, 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 but not for the purpose of expressing an opinion on theeffectiveness of entity's internal control. An audit also includes evaluating theappropriateness of accounting policies used and reasonableness of the accounting estimatesmade by management, as well as evaluating the overall presentation of the financialstatements.

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 financial statements give the information required by the Act, in themanner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India:

i) In the case of the Balance Sheet, of the state of affairs of the Company as at 31stMarch, 2014;

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 TaxSubsidy/Capital Reserve Account in the circumstances as explained in the Note. Our opinionis not qualified 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'), asamended, issued by the Central Government of India in terms of subsection(4A) of section227 of the Companies Act, 1956, we give in the Annexure a statement on the mattersspecified in paragraphs 4 and 5 of the Order;

2. As required by section 227(3) of the Companies Act, 1956, 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 Companies Act, 1956, read with the General circular 15/2013 dated 13thSeptember, 2013 of the Ministry of Corporate Affairs in respect of section 133 of theCompanies Act, 2013,

e. On the basis of written representations received from the directors as on 31stMarch, 2014, and taken on record by the Board of Directors, none of the directors isdisqualified as on 31st March, 2014, 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 & Co.
Chartered Accountants
Firm Registration No. 000756N
K. K. Tulshan
Place : New Delhi Partner
Dated: 29th April, 2014 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 particularsincludingquantitative 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, 2014 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 not granted any loans, secured or unsecured, to companies, firmsor other parties listed in the register maintained under section 301 of the Companies Act,1956. Accordingly, clauses (iii) (a) to (d) of paragraph 4 of order are not applicable tothe company.

(b) The Company has taken an unsecured loan (year-end balance Rs. 2,455 crore) from acompany covered in the register maintained under section 301 of the Act.

(c) In our opinion and according to the information and explanation given to us, therate of interest and other terms and conditions of such unsecured loan taken by theCompany is, prima facie, not prejudicial to the interest of the Company.

d) The Company is regular in payment of interest on such loan which is payable ondemand.

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 Rs. 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 (1)(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, 2014 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, 2014 onaccount of disputes are given below:

Name of the statue Nature of dues Amount (Rs. in Crore) Forum where dispute is pending Amount deposited (Rs. in crore) period to which the amount relates
Income tax Act,1961 Income Tax 11.38 Punjab & Haryana High Court NIL AY 04-05
Income tax Act,1961 Income Tax 539.59 Income Tax Appellate Tribunal, New Delhi 214.93 AY 05-06 to 09-10
Income tax Act,1961 Income Tax 4.2 Commissioner of income tax(Appeals), Rohtak 4.2 AY 05-06
Building & Other Construction Workers Welfare Cess Act, 1996. Building cess 3.35 Odisha High Court 0.05 FYs 08-14
Odisha Entry Tax Act & Rules Entry tax 5.44 Supreme Court NIL FY 13-14
Odisha Entry Tax Act & Rules Entry tax 28.83 Odisha High Court 2.84 FYs 10-14
Odisha Entry Tax Act & Rules Entry tax on imported goods 84.14 Commissioner of Commercial Taxes, Cuttack, Odisha 12.52 FYs07-10
Odisha Entry Tax Act & Rules Entry Tax 0.07 Additional Commissioner,Commercial tax (Appeals), Cuttack 0.02 FY 07-08
Odisha Entry Tax Act & Rules Entry Tax 0.01 Deputy Commissioner, Commercial Tax(Appeals), Cuttack 0.00 FY 06-07
Central Excise & Salt Act,1944 Excise duty 1.03 High Court, Bilaspur NIL FY 94-95 to 07-08
Central Excise & Salt Act,1944 Excise duty 0.10 Madhya Pradesh High Court, Jabalpur NIL FY 95-96
Central Excise & Salt Act,1944 Excise duty 168.95 CESTAT, New Delhi 13.74 FY 02-03 to 13-14
Central Sales Tax Act,1956 Central Sales Tax 0.45 Odisha High Court 0.45 FY 04-05
Central Sales Tax Act,1956 Central Sales Tax 0.24 Deputy Commissioner, Commercial Tax, Rourkela 0.15 FY 05-06
Central Sales Tax Act,1956 Central Sales Tax 0.48 Deputy Commissioner, Commercial Tax, Cuttack 0.14 FY 06-07
Odisha Value added tax State Sales Tax 0.20 Deputy Commissioner, Commercial Tax (Appeals), Cuttack 0.04 FY 06-07
Odisha Value added tax State Sales Tax 0.30 Additional Commissioner Commercial Tax (Appeals), Cuttack 0.09 FY 07-08
Chhattisgarh State Govt. Law Energy Development cess 227.17 Supreme Court Nil FY 04-05 to 12-14

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 and as per the books andrecords examined by us, adequate documents and records are maintained in cases where theCompany has granted loan and advances on the basis of security by way of pledge of shares.The Company has not granted any loans and advances on the basis of security of debenturesor 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 andother records including sanctions by the lenders examined by us, on an overall examinationof the Balance Sheet of the Company combined with underlying nature, movement, maturitypattern of the funds and funds deployment policy of the Company, the funds raised by theCompany on short term basis during the yearhave not been applied for long-term investment.

18 The Company has made preferential allotment of equity shares under an employee stockpurchase scheme to its Managing Director, being a party covered in the register maintainedunder section 301 of the Companies Act, 1956, the terms whereof are not prejudicial to theinterest of the Company.

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 secureddebentures.

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

21 During the course of our examination of the books and records of the Company carriedout in accordance with the generally accepted auditing practices in India, we have neithercome across any instance of fraud on or by the Company, noticed and reported during theyear, nor have we been informed of such case by the management.

For S. S. Kothari Mehta & Co.
Chartered Accountants
Firm Registration No. 000756N
K. K. Tulshan
Place : New Delhi Partner
Dated: 29th April, 2014 Membership No. 85033
   
Futures & Options Quote
Expiry Date :
281.90    [2.05] ([0.72]%)
Instrument: FUTSTK
Expiry Date: 31-Jul-2014
Open Price: 284.50
Average Price: 281.36
No. of Contracts Traded: 8,717
Open Interest: 1,10,71,000
Underlying: JINDALSTEL
Market Lot: 1,000
Previous Close: 281.90
Day's High | Low: 288.80 | 276.15
Turnover (Cr.): 245.26
Open Int. Change: 0,42,22,000 ([27.61]% )
Key Information

Key Executives:

Naveen Jindal , Chairman

Ratan Jindal , Director

R V Shahi , Director

Arun K Purwar , Director


Company Head Office / Quarters:

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

Registrars:


 
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