Better lives.

Brighter smiles.

Jindal Power Limited

ANNUAL REPORT | 2009-10
Our new logo - The Jindal Flag is a symbol of all the characteristics we stand for: integrity,
quality and a strong bias for action. The flag’s fluid lines reflect the agility and dynamism
that is part of our brand’s essential character. The colours of the Jindal Flag are derived
from the tricolour of the Indian flag. They are a symbol of our commitment to the
nation’s development and the pride we take in its progress.

Contents
Tribute to a Legend 1
About JPL 2
Chairman’s Review 10
Our Corporate Strategy 14
Our Competencies 16
Overview of the Operational Tamnar Plant 18
Future Projects 20
Corporate Social Responsibility 28
Our Green Initiatives 32
JSPL, a Glimpse 34
The Board 36
Directors’ Report 44
Financial Statements 57
 Tribute to a Legend
Successful industrialist.
Social reformer. Political
thinker. Philanthropist.
A man who defied all easy
definitions and inspired a
generation to follow in his
footsteps.

Late Shri O. P. Jindal, Founding Chairman

 Corporate Strengths
About JPL Chairman’s Review Future Projects
and Strategies

India’s average energy deficit

is 8.9% and the peak power deficit averaged 12.8% during 2003-09.
India’s total energy requirement is expected to touch 1,392,066 million
unit (MU) by 2017.

India’s energy requirement

will grow at a CAGR of 7.1% to 1,392,066 Million Units between 2007
and 2017 according to the 17th Electric Power Survey, May 2007.

This will mean that India needs

to have installed generating capacity of approximately 300,000 MW by
2017. That is, almost twice the 159,398 MW total installed generating
capacity as on March, 2010, to be created in the next seven years.

There is action on the ground.

The total capacity addition over the preceding five Five-Year Plan was a
mere 91,000 MW. Against this, the planned capacity addition for the
Eleventh Five-Year Plan alone is 78,700 MW.

Complicated?
Aerial view of 1000 MW Thermal Power Plant at Tamnar, Raigarh, Chhattisgarh

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All movement depends on energy. And all progress depends on

movement. Progress improves the quality of life. And a better life
means happier people and brighter smiles.

Therefore, as a natural corollary, energy brings smiles.

As more than a billion people in India move forward in unison, their

happiness depends on energy that lights up homes, irrigates farms,
powers factories and illuminates villages and cities.

For this to happen, India needs power.

Power is energy. Energy is life. Life is smiles.

Simple.

Annual Report 2009-10 3

 Corporate Strengths
About JPL Chairman’s Review Future Projects
and Strategies

Whichever way you

look at it, India’s
need for a significant
amount of additional
power to propel its
dreams and
ambitions is obvious.
Jindal Power Limited
is a company that
strives to address this
acute need.

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We have a plan
-to set up 14,894 MW of power generating capacity.

We are backed by experience

-having already demonstrated it through the efficient operation
of a 1,000 MW power plant at Tamnar, Chhattisgarh.

and credibility
-being part of the about US$12 billion O. P. Jindal Group that
has a proven track record in a number of industries.

We don’t just think of what we do, but also

how to do it
-taking effective steps to minimise the impact of our operations
and setting up hydro power projects that lead to minimal
resource depletion.

We are committed to a happier community,

society and nation
-devoting resources and efforts to help improve healthcare,
education and income generation in our area of presence.

We seek to generate progressively incremental

value for all our stakeholders
-through backward linkages for coal and water, and efficient
operations that guarantee returns on capital invested.

And, by doing all this, we

endeavour to help lives become
better and smiles brighter.

Annual Report 2009-10 5

 Corporate Strengths
About JPL Chairman’s Review Future Projects
and Strategies

JPL is committed to
help uplift lives and
widen smiles through
the implementation
of 10,480 MW
(thermal and hydro)
power projects,
while 4,414 MW is at
planning stage.

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Committed since inception

Incorporated in 1995, JPL a company promoted by Jindal Steel &
Power Limited (“JSPL”), which currently holds 96.43% in JPL. We
are present across the value chain of power sector, from power
generation to power trading with a 1,000 MW operational thermal
power project at Tamnar in Raigarh, Chhattisgarh, operating since
September 2008.

Focused for a cause

The certifications that we have won reaffirm our commitments: the
ISO 9001:2000 certification ensures quality management discipline;
ISO 14001:2004 certification entails environment management
protocol and OHSAS 18001:2007, demonstrating commitment to
safety standards.

Respected as a brand
We have received ‘LAA’ rating by ICRA for long-term credit and
PRI+ by CARE for short-term credit. We were awarded at the Annual
Coal Mines Safety Fortnight 2008 hosted by the South Eastern
Coalfields Limited for safety management plan under Group - E
(Mega Projects), dust suppression under Group - E (Mega Projects)
and (Special Award) for coal loading and transport in OC Mines under
Group - E (Mega Projects).

Clean and Green surroundings at the power plant in Tamnar

Annual Report 2009-10 7

8
2008 (Q1) 962
About JPL

2008 (Q2) 1,490

2008 (Q3) 1,951

Jindal Power Limited

2008 (Q4) 1,965

2009 (Q1) 2091

2009 (Q2) 1851

2009 (Q3) 2120

2009 (Q4) 2086

Gross power generation

Chairman’s Review

(million units)

2008 (Q1) 59

2008 (Q2) 70

2008 (Q3) 88
and Strategies
Corporate Strengths

2008 (Q4) 91
Our Performance

2009 (Q1) 96
Plant load factor

2009 (Q2) 84

2009 (Q3) 96

2009 (Q4) 97
(%)
Future Projects
 2008 (Q1) 293.60
Responsibility

2008 (Q2) 653.85

Corporate Social

2008 (Q3) 1160.67

Net sales
2008 (Q4) 1149.36

2009 (Q1) 1213.53

2009 (Q2) 891.08

2009 (Q3) 965.33

The Board

2009 (Q4) 851.96

(Rs. in crores)

2008 (Q1) 41.31

2008 (Q2) 314.71

2008 (Q3) 574.62

Directors’ Report

2008 (Q4) 651.29

2009 (Q1) 700.29

Profit after tax

2009 (Q2) 514.71

2009 (Q3) 582.39

2009 (Q4) 521.37

(Rs. in crores)
Financial

Annual Report 2009-10

Statements

9
 Corporate Strengths
About JPL Chairman’s Review Future Projects
and Strategies

Chairman’s Review
Dear Stakeholders,
These are probably the best times that India has
seen. Robust growth and exemplary resilience have
now firmly established our nation as an important
participant in the global economic environment. There
are external and internal drivers to this phenomenon,
but no promise can be transformed into performance
without policy intent. Which is where, the role of the
Indian Government needs to be commended. It has
moved swiftly, and displayed determination and resolve
to ensure that the pace or potential of our economy is
not impeded.

Changing scenarios and perceptions

This is especially true for the energy sector. The
Our strategy is aligned Government of India recognizes the energy sector
to our vision and we as key to sustain India’s economic growth and has
initiated various power sector reforms to attract
are capitalising on our private participation, increase competition and reduce
inherent strengths and aggregate technical and commercial losses. On account
of significant supply deficits, high growth potential
experience acquired and favourable government policy, an attractive
through our first opportunity exists for private players to enter the

project to accelerate power segment. At the same time, the projected

incremental of power cannot be met by government
the setting up of our or its undertakings alone. The initial reluctance of the
other ventures. private sector owing to higher gestation and pay back

10 Jindal Power Limited

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periods are now a thing of the past, and there is clear

intent for participation in this opportunity. I am certain
that the level of private participation will go up from
the present 18 per cent, and given the expanding
generating capacity, the difference in absolute terms is
a mammoth one.

This represents JPL’s business optimism and also the

supreme challenge to contribute in some measure to
the national priority.

Harnessing homegrown potential

We have been early movers in the power generation
business in India by private players and that has
stood us in good stead. We are now pressing forward
with a strategy to create more than 14,000 MW
of power in the forthcoming years. All our current
power generation projects under implementation and
planning will translate this overarching vision into a
ground reality. Our strategy is therefore aligned to our
vision and we are capitalising on our inherent strengths
and experience acquired through our first project to
accelerate the setting up of our other ventures. We
are also focusing on creating a diversified portfolio,
harnessing environment friendly generation sources
such as hydro power, where we have made moderate
progress on the projects announced.

Our own resoluteness has seen us take a number of

steps. Our Tamnar project was the first to be awarded a
‘mega project status’ in the private sector. We used our
own engineering skills and execution abilities to carry
out the EPC and O&M activities. And our plant has been
operating at high load factors consistently, signifying
efficient operations and minimal downtimes.

In doing so, we have also created intellectual capital

and a team of professionals that is self motivated,
technically competent and adept at managing
operations effectively. Therefore, even if power may
be the critical resource we are generating, our people
competence represents an equally important asset at

Annual Report 2009-10 11

 Corporate Strengths
About JPL Chairman’s Review Future Projects
and Strategies

JPL. We continue to emphasize on sustaining, growing,

nurturing and retaining our qualified human resource.

Turning greener
India’s carbon emissions, accounting for almost 6%
of the world’s total, will more than triple within the
next 20 years, warranting enhanced focus on green
energy for a safer, cleaner and a sustainable planet.
Thermal power generation has to therefore, ensure it
impacts the environment minimally, and newer sources
of energy will be growing in capacity, owing to this
unavoidable reality. At JPL, we have been proactive in
our response towards a sustainable power generation
business. We have invested our plant with environment
management practices that include regular monitoring
of our impact across all parameters and minimizing
incidence.

We are focusing on hydroelectric projects with an

aggregate installed generation capacity of 6,554 MW.
The advantages of hydro electric power are multiple:
this energy is not dependent upon depleting fossil
fuels, which makes electricity costs affordable; the
pollution created by hydroelectric energy generation
is quite minimal. Besides, a 500 MW solar power
project is also on the anvil. We are also examining
the feasibility of nuclear power generation. The big
message is that ‘green’ is not a rhetoric, but a passion
The big message is for us at JPL, which involves a lot of planning and
decision-making to help make a greener tomorrow for
that ‘green’ is not ourselves and our children.
a rhetoric, but a
passion for us at JPL, Performing to create value for all
stakeholders
which involves a lot At JPL, we enhanced our cumulative thermal power
of planning and generation to 8,148 MU in 2009-10 and Plant Load

decision-making to Factor to 93.01%. Our bilateral power purchase

arrangements with state-owned utilities facilitate
help make a greener accelerated response to market conditions and develop
tomorrow for a deeper insight into India’s energy dynamics. The
result is that we scaled up operations and achieved
ourselves and Rs. 3921.90-crores net revenue in 2009-10 and net
our children. profit of Rs. 2318.76 crores. Our operations also

12 Jindal Power Limited

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generate a social dividend. We are conscious investors

in the betterment of lives around our operations, and
our CSR arms are active in promoting the development
of regional resources, enhance local employability and
uplift the quality of life in villages adopted for focused
intervention. We are also focusing on community
education, social infrastructure and healthcare.

It is pertinent to mention in this context that we

have undertaken rebranding initiatives with a new
logo to reposition ourselves as a dynamic Indian
multinational. This logo communicates a contemporary
mindset, tremendous surge of energy and commitment
to harness our energies to create enhanced
stakeholder value.

Moving ahead
We intend to capitalise on emerging opportunities
in India’s power sector, which are being driven by
an acute demand-supply imbalance. But this cannot
happen unless we build capabilities for sustainable
growth. We have started in right earnest, now the
focus should be to sustain the momentum and
align our organisational objectives with our nation’s
priorities. Only then can we justifiably claim as having
contributed in bettering the lives of India’s teeming
millions and bringing the sunshine of an enduring
smile to their lives. It will also lead to a better operating
performance and value creation for our shareholders.
Our strategy is therefore, not an end in itself, but
a carefully thought out approach to national and
stakeholder delight.

I thank all stakeholders for their contribution towards We have started in

organisational growth, and seek your continuing
support in our journey ahead. right earnest, now
the focus should
be to sustain the
Naveen Jindal momentum and align
Chairman, Jindal Power Limited
our organisational
objectives with our
nation’s priorities.

Annual Report 2009-10 13

 Corporate Strengths
About JPL Chairman’s Review Future Projects
and Strategies

View of Central Control Room inside the power plant

Our Corporate
Strategy
Capitalise on India’s power Secure and benefit from low-cost
sector growth fuel supplies
India’s power sector has historically been characterized One of the key success factors in the power generation
by power shortages that have consistently increased business is securing low-cost fuel supplies and the
over time. According to the CEA October 2009 Report, Company is strongly placed to be able to satisfy
the total peak shortage was 14,672 MW from April our current fuel requirements. JPL intends to secure
2009 to October 2009. In the 11 Plan (2007-2012), a fuel by acquiring coal assets or through captive coal
capacity addition of 71 GW and 84 GW was estimated allocations in India, or through fuel linkages, to reduce
assuming an 8% and 9% GDP growth rate, respectively, power generation cost.
would be required by 2012. In the 12th Plan (2012-
2017), a capacity addition of 82 GW and 94 GW was
Flexible power offtake
estimated assuming an 8% and 9% GDP growth,
agreements
respectively, would be required by 2017. Leveraging
JPL plans to maintain a combination of long, medium
the experience in project management, the Company
and short-term PPAs with a mix of state distribution
believes that it is well-positioned to capitalise on this
companies, industrial consumers and power trading
growth through the projects under implementation
companies as part of our credit risk management
and will continue to look at further opportunities to set
and achieve high profitability. Selling power through
up new power projects.

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The Company plans to enter into power transmission,

distribution and trading business, in addition to our
presence in power generation, captive fuel supplies and
mining. It also established a subsidiary, Jindal Power
Trading Company Ltd. (formerly known as Chhattisgarh
Energy Trading Company Ltd.), to engage in power
trading activities and have a ‘Category II’ license, which
allows it to trade power produced by third parties.

Diversify geographical presence

The Company is planning to construct power plants
arrangements of varying durations and terms helps us
in Chhattisgarh, Jharkhand, Odisha and Arunachal
respond quickly to market conditions and benefit from
Pradesh. It also has a project under planning in Nepal.
the favourable demand/supply dynamics of the Indian
We intend to further diversify geographical presence
power sector. This strategy enabled the Company in
across India and outside. In the future, the Company
achieving robust profitability in the past and will help
may acquire additional power generation development
to sustain the same in the future.
projects, existing power plants or related businesses.
The Company intends to acquire and develop projects
Focus on green energies closer to fuel sources and coastal based power projects
JPL’s vision is to establish a presence in other forms of to take advantage of imported coal. It is actively
power generation such as gas, hydro, wind, nuclear looking for opportunities to acquire, develop and
and solar power, with a focus on hydro and other operate power plants outside India.
forms of environment-friendly renewable energy
sources. The Company is evaluating options with Recruit, train and retain quality
respect to setting up a wind power facility including personnel
discussions with suppliers of wind power plants.
The Company’s success depends upon our ability to
Apart from the various hydro electricity projects, the
recruit, train and retain high quality professionals. We
Company has applied to the regulatory authorities
conduct on-campus recruitment at top engineering
in Rajasthan for power capacity allocations for a 500
institutes in India, such as IIT Roorkee, IIT Kanpur,
MW solar power project and is exploring technology
IIT Chennai and IIT Kharagpur. Furthermore, we also
options and suppliers. JPL is also examining the
train our engineers in the operation and maintenance
feasibility of nuclear power generation.
of thermal power projects at Jindal Academy and
the Jindal Institute of Power Technology, which were
Establish presence across the established by the Jindal Education and Welfare
value chain Society. JPL’s continued focus on performance, quality,
JPL intends to build an integrated energy business by training and growth will facilitate in attracting and
establishing presence across the value chain of the retaining highly skilled employees.
power sector and become India’s major power player.

Annual Report 2009-10 15

 Corporate Strengths
About JPL Chairman’s Review Future Projects
and Strategies

Our Competencies

Captive fuel sources

Flexible off-take arrangements

Strategic locational presence

Benefits of parentage

Robust financials

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JPL operates the Gare Palma IV/2 and IV/3 captive coal mines in Chhattisgarh. The lease has been taken from the
government of Chhatisgarh for a 30-year period. It possesses geological reserves of around 246 MT. The Dumka
and Godda Projects* are under implementation in Jharkhand and were allotted Amarkonda Murgadangal and
Jitpur captive coal blocks, respectively. These coal blocks possess geological reserves of around 205 MT and 81
MT, respectively**.

JPL’s flexible off-take arrangements demonstrate revenue visibility. The Company’s customers include JSPL, state-
owned utilities and power distribution and trading companies. Of the proposed 11,480-MW capacity (either
operational or under implementation) JPL has already entered into definitive off-take arrangements for 2,125
MW. During 2009, JPL sold all the power generated from Tamnar I Project under PPAs.

JPL’s projects are located in the Western, Eastern and North - Eastern regions of India, which reported peak
energy deficit of 17.7%, 6.3% and 17.9% respectively, for the financial year ended on 31 March, 2010. The
Company’s Dumka, Godda and Tamnar II thermal power projects are proposed to be located in Chhattisgarh and
Jharkhand, accounting for around 45% of India’s coal resources. The hydroelectric power projects are located in
Arunachal Pradesh, enjoying abundant water supply.

JPL, a company promoted by JSPL, derives the following benefits: access to managerial talent; competitive
commercial terms; access to critical equipment and supplies; access to technical expertise and knowledge;
spearhead JSPL’s all future independent power generation projects in India.

JPL’s reserves and surplus grew from Rs. 1,499.84 crore as on 31 March 2009 to Rs. 3,258.90 crore
as on 31 March, 2010. The Company’s net worth grew from Rs. 2,367.54 crore as on 31 March 2009 to
Rs. 4,603.11 crore as on 31 March, 2010. The Company’s debt equity stood at 0.23 in 2009-10,
compared to 1.32 in 2008-09.

* These projects were being developed previously by JSPL and are being assigned to JPL subject to various
regulatory approvals.

** Based on information provided by the Ministry of Coal.

Annual Report 2009-10 17

 Corporate Strengths
About JPL Chairman’s Review Future Projects
and Strategies

Overview of the
Operational Tamnar Plant
JPL has set up India’s first mega power project in the private sector –
the 1,000 MW thermal power plant at Tamnar, Raigarh, Chhattisgarh.
The Company has invested around Rs. 4,338 crore for setting up the
1,000 MW power plant, which commenced commercial operations of
the first unit in December 2007 and all four units (250 MW each) were
commissioned within a nine-month span.

Gateway to Tamnar Power Plant

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Turbine Floor of 4x250 MW power plant at Tamnar View of Boiler at Tamnar power plant

Prominent features

The Company has constructed a 258 km, 400 kV double circuit transmission line from the
plant to the Power Grid Corporation of India Limited network in Raipur through which
power can be sold anywhere in India.

Water is supplied from the Kurket river, 25 kilometers away.

18 metre high dam was built on the Kurket River.

Coal is transported from the mines (having geographical reserves of approximately

246 million tons) to the power plant via a 6.9 kilometers pipe conveyer belt.

1,000 MW power plant was set up with four sets of boiler turbine generator packages
(250 MW each) supplied by BHEL.

Annual Report 2009-10 19

 Corporate Strengths
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Future
Projects
First Mega Power Project in the private sector

Under implementation – Thermal

Tamnar II Project Dumka Project (*)

Location Tamnar, Raigarh, Location Dumka, Jharkhand
Chhattisgarh

Capacity (MW) 2,400 (4x600) Capacity (MW) 1,320 (2x660)

Fuel and technology Coal/Sub-critical Fuel and technology Coal/Super-critical

Expected COD of 1st unit / December 2012/
Expected COD of 1st unit / January 2014/
Expected COD (•) December 2013
Expected COD (•) May 2014
Estimated cost 13,410
Estimated cost 7,224
(Rs. crores) (#)
(Rs. crores) (#)
Debt : Equity 75:25
Debt : Equity 70:30
Fuel source / supplier • For 1200 MW M/s
Coal India Limited has Fuel source / supplier Fuel supply agreement
issued the Letter of the with a JV company of
Assurance (LOA) for JSPL for access to its
Coal linkage captive mine

• Coal linkage applied for EPC Invited bids from

remaining 1,200 MW various EPC and BTG
contractors
EPC • To be implemented by
procuring equipment in
various packages
• BTG contract awarded
to BHEL

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18 m high Dam over River Kurket 6.9 km long pipe conveyor belt

(*) These projects were being developed previously

Godda Project (*) by JSPL under captive power capacity and are
being assigned to JPL subject to various regulatory
Location Godda, Jharkhand
approvals.

(•) Based on the respective financing documents for

Capacity (MW) 660 (1x660)
each of the projects. For the Tamnar II Project, as
Fuel and technology Coal/Super-critical per the contract agreement with BHEL effective
December 27, 2008, for the supply of the main BTG
Expected COD of 1st unit / January 2014/
plant package, the equipment shall be supplied so
Expected COD (•) January 2014
as to enable commissioning of unit I and II of the
Estimated cost 3,666 first phase of the project within 41 and 45 months
(Rs. crores) (#) of the effective date of the contract, and unit I and
II of the second phase of the project within 49 and
Debt : Equity 70:30
53 months of the effective date of the contract.
Fuel source / supplier Fuel supply agreement However, as per the information memorandums for
with JSPL for access to debt financing for the first phase and the second
JSPL captive mines phase, and the Tamnar II clarification letter, the
implementation schedule has been conservatively
EPC Invited bids from various
assumed to be 47, 51, 55 and 59 months
EPC and BTG contractors
respectively for the units of the Tamnar II Project.

(#) Estimated costs for projects under implementation

as appraised by SBI Capital Markets Limited. Actual
cost is given for our operational Tamnar I plant.

( ) As per the certificate of Lodha & Co., Chartered

Accountants dated December 22, 2009.

Annual Report 2009-10 21

 Corporate Strengths
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and Strategies

Aerial view of 4000 MW Etalin HEP in Arunachal Pradesh

Under implementation – Hydro

Etalin Project Attunli Project

Etalin, Arunachal Attunli, Arunachal
Location Location
Pradesh Pradesh

Capacity (MW) 4,000 Capacity (MW) 500

Fuel Hydro Fuel Hydro

Expected COD 2020 Expected COD 2020

Estimated cost (Rs. crores) 21,820(*) Estimated cost (Rs. crores) 4,172(*)

Debt:Equity 70:30 Debt:Equity 70:30

Detailed Project report in Detailed Project report

Current Status Current Status
progress in progress

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Site for 4000 MW Etalin HEP in Arunachal Pradesh

(*) Estimated costs based on preliminary project

Subansiri Middle Project feasibility reports dated April 2004 and updated
based on the Company’s internal estimates as of
Subansiri Middle, Arunachal
Location June 30, 2009.
Pradesh
(#) In the nature of loans and advances to
Capacity (MW) 1,600
subsidiaries, including for the payment of an
upfront fee (including processing fee) to GoAP
Fuel Hydro
for these projects.

Expected COD 2018

Estimated cost (Rs. crores) 11,203 (*)

Debt:Equity 70:30

Detailed Project report in

Current Status
progress

Annual Report 2009-10 23

 Corporate Strengths
About JPL Chairman’s Review Future Projects
and Strategies

Open Cast Coal Mines at Tamnar, Raigarh, Chhattisgarh

Under planning

Jharkhand Project Angul Project (*)

Location Jharkhand Location Angul, Odisha

Capacity (MW) 2,640 Capacity (MW) 1,320

Fuel Coal Fuel Coal

Memorandum of Memorandum of
Understanding signed Understanding signed
Current Status Current Status
with the Government with the Government
of Jharkhand of Odisha

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View of Turbine at Tamnar power plant Transmission lines

(*) This project was being developed previously by

Nepal Project JSPL and is being assigned to JPL subject to various
regulatory approvals.
Location Chainpur Seti, Nepal

Capacity (MW) 454

Fuel Hydro

Granted a survey
Current Status license from Ministry
of Energy, Nepal

Annual Report 2009-10 25

 Corporate Strengths
About JPL Chairman’s Review Future Projects
and Strategies

Rabo Dam 258 km, 400 KV Transmission Line

Highlights of the 258 km, 400

Dam features on Kurket River KV double circuit transmission
line from Raigarh to the PGCIL
sub-station at Raipur

• Catchment area: 783 sq km • Total length: 258 km

• Submergence area: 681 ha • Total towers: 701

• Top level of dam: RL 261.50 m • Forest: 5.920 hectare at village Rabo (Raigarh)

• Max height of spillway: 18 m • 400 KV crossing: 5 (PGCIL)

• Length of right dyke : 1133 m • 220 KV crossing: 6 (4 CSEB+1 PGCIL)

• Length of main earth dam: 244.25 m • 132 KV crossing: 3 (CSEB)

• Length of spillway: 144.75 m • Railway crossing: 2 (SECR)

• Length of left dyke: 210 m • River crossing: 4 (Mand, Asdeo, Sheonath)

• Total gates in spillway: 10

• Size of spillway gates: 12 m x 8.5 m

• Size of pump house: 13.5 m x 19.5 m

• Reservoir capacity: 36 m.cu.m

• Number of pumps: 3

• Pump capacity: 4000 (Cum/hr)

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Turbine Overhauling of 4 x 250 MW power plant at Tamnar, Chhattisgarh

Initiatives taken to achieve high PLF

• Daily plant performance monitoring meeting • Appropriate coal quality through proper blending
chaired by unit head; followed by monthly of coal from different seams from our captive
performance review coal mine

• Follows maintenance practices like scheduled • Ensure maximum availability of transmission line
preventive maintenance through patrolling and hot line maintenance

• Assessment of the equipment through condition • For further improvement of the various
monitoring like vibration analysis, wear debris performance parameters by forming committees
analysis, thermo vision and DGA among others like heat rate improvement task force, auxiliary
power improvement task force, specific oil
• Root cause analysis of unusual occurrences and
improvement task force and outage committee
implementation of the findings/recommendations
on highest priority basis

• Units and equipments are operated at design

parameters

• Strict adherence to the practice of interlock

and protection checking after minor/major
overhauling as well as during any opportunity

• Maintain water chemistry

Annual Report 2009-10 27

 Corporate Strengths
About JPL Chairman’s Review Future Projects
and Strategies

Corporate with a
Conscience

28 Jindal Power Limited

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At JPL, corporate
social responsibility
is a philosophy to
drive community
uplift.

Annual Report 2009-10 29

 Corporate Strengths
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and Strategies

Pulse Polio campaign in Tehlirampur,Tamnar

Our O. P. Jindal Samaj Kalyan Samiti group works with underprivileged

communities to develop resources in the region, support local
professional development and enhance the quality of life in adopted
villages through education, healthcare and civic amenities.

Community development Healthcare

In 2005, O P Jindal Samaj Kalyan Samiti adopted JPL also focused on providing proper healthcare to

six villages in Tamnar, and 32 more villages were villagers to eradicate diseases like malaria and filaria.
In addition, we have organized various mobile medical
subsequently adopted and included in different
camps, family planning camps and AIDS awareness
welfare programmes. These programs focused on
camps in the adopted villages.
the development of education, building, health and
family welfare, animal husbandry, infrastructure Education
development, along with women empowerment and We have also undertaken various initiatives in the
income generation. education industry, including the establishment of

30 Jindal Power Limited

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Anganwadi Centres and the OP Jindal Merit Scholarship,

distribution of furniture to different schools, establishment
of the Navjyoti Programme, Adult Education Centers and
the Dattak Putri Programme. We also founded the OP
Jindal Thermal Power School in 2006.

Jindal Institute of Power

Technology
The Jindal Institute of Power Technology or JIPT was
established by the Jindal Education and Welfare Society, an
entity associated with JSPL to contribute towards creating
a national pool of trained workforce on power generation
and management. The institute’s objective is to develop
competent and skilled manpower of world standards
by imparting technical and vocational training skills in
Medical Camp at Pata, Tamnar
appropriate occupations. JIPT conducts specialized and
need-based training programmes, as well as power specific
graduate and post-graduate programmes, involving
research, renovation, refurbishment and modernisation of
power plant processes and equipment.

Continual improvement measures

Our power project in Tamnar, Raigarh has been awarded
the following certifications:

ISO 9001:2000: Certificate of Registration (Certificate

No. CI/10752) for Thermal Power Plant, Tamnar, Raigarh,
Chhattisgarh for operating a Quality Management System
conforming to ISO 9001:2000 for the generation of
electricity by operating coal based thermal power plant
(4x250 MW) and transmission of power to the grid by
Community Initiative at Kurket Dam, Tamnar
Certification International (UK) Limited

ISO 14001:2004: Certificate of Registration (Certificate

No. CI/10752E) for Thermal Power Plant, Tamnar, Raigarh,
Chhattisgarh for operating an Environmental Management
System, conforming to ISO 14001:2004 for the generation
of electricity by operating coal based thermal power
plant (4x250 MW) and power transmission to the grid by
Certification International (UK) Limited

OHSAS 18001:2007: Certificate of Registration (Certificate

No. CI/10752HS) for Thermal Power Plant, Tamnar, Raigarh,
Chhattisgarh for operating a Safety Management System
conforming to OHSAS 18001:2007 for the generation of
electricity by operating coal-based thermal power plant
(4x250 MW) and transmission of power to the grid by
Jindal Institute of Power Technology
Certification International (UK) Limited

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Our Green At JPL, we intend to develop our power projects under

assignment in a 660 MW configuration, using super-

Initiatives critical technology in order to take advantage of lower

fuel costs. This technology uses higher temperature
and pressure of steam for thermal power generation
in comparison to other conventional coal fired power
plants. Power plants using super critical technology
offer higher thermodynamic efficiency and lower
fuel consumption, leading to lower carbon dioxide
emissions and lower ash production.

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JPL is committed to developing

extensive green belts in the
plant vicinity. These endeavours
were undertaken in coordination
with local forest departments.
Installed efficient air pollution
control devices, using recycled
wastewater, possess wet and
dry ash collection systems
for fly ash management and
organise environment awareness
campaigns.

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JSPL, a Glimpse
Jindal Steel and Power Limited (JSPL) is a leading player in steel, power,
mining, coal to liquid, and infrastructure.

Jindal Steel and Power Limited (JSPL), is a leading coal-based sponge iron industry within India.
player in steel, power, mining and infrastructure sector
The Company’s product portfolio includes parallel
with an annual turnover of over US$ 2.3 billion
flange beams, rails, coils and plates, wire rods,
(Rs. 11,000 crore) and forms a part of about US$
pellets, sponge iron, power and ferro alloys including
12 billion O P Jindal Group. The Company began
manufacturing of widest plates in coil form that
its business with steel production, captive coal and
cater to each and every need in the steel market. The
iron-ore mines, along with 358 MW captive power
group enjoys a global presence in Bolivia, Georgia,
plant. Today, it is the largest private sector investor in
Chhattisgarh. With a total investment commitment of China, Mozambique, Democratic Republic of Congo,

over US$ 6 billion (Rs. 30,000 crores) over a decade, a Indonesia, Mongolia, Madagascar, South Africa and
consistent focus on backward and forward integration Oman. The Group includes Jindal Power Ltd., Jindal
helps it to optimise costs and maximize profits. Petroleum Ltd., Jindal Steel Bolivia and Jindal Cement.
JSPL has the world’s largest coal based sponge iron Investment plans in steel, power and mining have
manufacturing facility and is a market leader in the touched more than US$30 billion.

Aerial view of JSPL steel plant at Raigarh, Chhattisgarh

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Expansion projects
India Global
Chhattisgarh: JSPL is establishing a 7 MTPA steel Bolivia
plant in phases, 2 MTPA cement plant and a 1600 • 1.7 MTPA integrated steel plant
MW captive power plant with a total investment of
• 6.0 MTPA sponge iron plant
US$ 6 billion (Rs. 30,000 crores).
• 10.0 MTPA iron ore pellet plant
Jharkhand: An 11 MTPA integrated steel plant and
• 450 MW power plant
a 2600 MW captive power plant in phases, with a
total investment of US$ 9 billion (Rs. 45,000 crores).

Odisha: A 12.5 MTPA integrated steel plant and

2600 MW captive power plant in phases, with
a cumulative US$ 10 billion (Rs. 50,000 crores)
investment.

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Mr. Naveen Jindal

The Board Non-executive Chairman

Mr. Naveen Jindal, 40, drives the JPL brand, leveraging

his 16 year experience and expertise in the steel
and power business. He has been instrumental in
contributing to the growth of JSPL as its Executive
Vice-Chairman and Managing Director. Mr. Jindal was
listed among 25 Indians who were part of the annual list
of 250 Global Young Leaders in 2007 prepared by the
World Economic Forum. He is a Member of Parliament,
first elected to the Indian Parliament in
2004 (14th Lok Sabha) from the Kurukshetra
constituency in Haryana, India. He was re-elected to
the 15th Lok Sabha in 2009. He is a member of the
Public Accounts Committee, the Standing Committee on
Home Affairs, consultative committee of the Ministry of
Defence, Parliamentary Forum on Children and a special
invitee of the Consultative Committee of the Ministry
of Road Transport and Highways. By petitioning the
Supreme Court of India, he also played a pivotal role in
providing Indian citizens the fundamental right to fly the
national flag on all days with dignity and honor.

An avid sportsman, he loves to play the polo and Jindal

Steel & Power Polo team has won several laurels under
his captaincy. In addition, he is a national record holder
in skeet shooting and has also captained the Indian
shooting team that won the silver medal in the South
Asian Federation Games in 2004. He has also represented
the country in the Asian Games held in Busan, South
Korea in 2002 in the Skeet shooting competition and
various other world events in shooting.

Mr. Jindal holds a bachelor’s degree in commerce from

Hansraj College, Delhi University and a Master’s degree
in business management from the University of Texas at
Dallas, USA. At the University of Texas, he served as the
President of the Student Government and was a recipient
of the ‘Student Leader of the Year’ award.

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Dr. Rajendra Prasad Singh Mr. Sushil Kumar Maroo

Executive Vice Chairman Deputy Managing Director

Dr. Rajendra Prasad Singh, 61, is the Executive Vice Mr. Sushil Kumar Maroo, 48, is the Deputy Managing
Chairman of JPL. In a career spanning approximately Director of JPL. He is also a Director on the Board of
40 years, he has served in the power sector in the fields two of our Promoters, JSPL and Gagan Infraenergy
of generation, transmission, large system operation and Ltd. He was instrumental in the financial planning
distribution. Prior to joining JPL, he was the Chairman and in achieving financial closure for the 1,000 MW
and Managing Director, Power Grid Corporation of India Mega Power Project of the Company and successfully
Limited. Besides, he has served in companies including implementing it. He has previously served in companies
NTPC Limited and Tata Iron & Steel Company and also like JSPL, Voltas Limited, Nippon Denro Ispat Limited,
served as a consultant to the World Bank. He was also Chambal Fertilizers and Chemicals Limited (Birla Group)
the Chairman and founder member of the International and RPG Dholpur Power Company Private Limited.
Group of Very Large System Operators (i.e. countries He served in JSPL from January 2001 to June 2008 in
with 60,000 MW or more generation capacity) and the various capacities and prior to joining our Company
President of the International Council of Large Electric was its whole-time director. During that period, he was
Systems, India. responsible for mobilisation of funds for JSPL’s enhanced
production capacity of sponge iron, steel and captive
He has received several awards including the Green
generation of power. As the Deputy Managing Director
Award 2006 from the World Bank, the EPRI Power
of our Company, he is responsible for implementing the
Delivery Individual Product Champion Award for 2005
strategy for the financial planning, project expansion,
from the Electric Power Research Institute, USA and the
resource mobilisation and the operation of the Tamnar I
Eminent Engineer Award by the Institution of Engineers,
Project and the day-to-day operations of the Company.
India. He was also honored with the Dr. Shrikrishna
Sinha Award 2005 for outstanding contribution in the Mr. Maroo oversees JPL’s foray into non-conventional
Indian power sector in general and for the development energy and our Promoters’ foray into the oil and gas
of the rural and urban electricity infrastructure in Bihar sector.
in particular. As the Executive Vice Chairman of the Mr. Maroo is a member of the Associated Chambers of
Company, he is responsible for the overall management Commerce and Industry of India’s expert committee on
of the Company. power (hydro, thermal and nuclear power), the expert
committee of Bank in the Federation of Indian Chambers
Mr. Singh holds a bachelor’s of science degree in
of Commerce and Industry and is the Chairman of the
engineering (mechanical) and a master’s of science
Indo-Georgian Chambers of Commerce.
degree in engineering (machine design) from the
Banaras Hindu University. He was conferred the degree He holds a bachelor’s degree in commerce from the
of doctor of science (Honoris Causa) from the Banaras University of Rajasthan and is an experienced chartered
Hindu University. accountant with over 24 years of experience in finance,
accounts and corporate affairs.

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Mr. Anand Goel Mr. Pradip Kumar Chakraborty

Non-executive Director Whole-time Director

Mr. Anand Goel, 57, is JPL’s non-Executive Director. He Mr. Pradip Kumar Chakraborty, 61, is JPL’s whole-time
has served JSL Limited (formerly Jindal Strips Limited) Director. His career spans over three decades in the
for 35 years in various managerial capacities. He is also power sector in relation to erection, commissioning,
the joint managing director of our Promoter company, operation and maintenance and overall management
JSPL. As the joint managing director of JSPL, he has been of modern thermal power stations. He has previously
involved in conceptualisation and execution of projects served as the Executive Director of NTPC Limited and
at Raigarh, Chhattisgarh for the manufacture of rails, the Chief Executive Officer of Kanti Bijli Utpadan Nigam
parallel flange beams, columns, plates and coils, the Limited, a joint venture of NTPC Limited and BSEB, on
setting up of the secondment basis as Executive Director, NTPC Limited.
6 MTPA capacity steel project at Angul, Odisha and the He was also the Managing Director of Indraprastha
6 MTPA capacity steel project at Patratu, Jharkhand Power Generation Company Limited and Pragati Power
and the expansion of the Raigarh plant from 3 MTPA Corporation Limited, on deputation from NTPC Limited,
to 6 MTPA. where he was responsible for the overall management of
these companies.
Mr. Goel holds a bachelor‘s degree in science from the
Punjab University and a master‘s degree in business Mr. Chakraborty holds a bachelor‘s degree in science
administration from BITS, Pilani. (physics) from Guwahati University, a bachelor‘s and
a master’s degree in technology with specialisation in
instrumentation from the Calcutta University.

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Mr. Kishore Kumar Sinha Mr. Ram Vinay Shahi

Whole-time Director Independent Director

Mr. Kishore Kumar Sinha, 62, is the whole-time Director Mr. Ram Vinay Shahi, 65, is JPL’s independent Director.
of JPL, leveraging 40 years of experience in the field of He has administrative and management experience
human resources/personnel and administration. He has of over 39 years. He has served as Secretary, Ministry
served for around 14 years with Hindustan Steel Limited of Power, Government of India, from April 2002 to
(now Steel Authority of India Limited) and its subsidiary, January 2007, prior to which he was the Chairman and
Hindustan Steel Construction Limited. He has also Managing Director of BSES Limited from 1994 to 2002.
worked for about 21 years with NTPC Limited serving During his tenure as the Secretary to GoI, the Indian
for seven years as their Director (Human Resources). power sector witnessed major restructuring through
Before JPL, he worked as an Executive President (Human the formulation and implementation of legislative and
Resources) with Navi Mumbai Special Economic Zone policy initiatives, aimed at creating a competitive market
Company Limited, a Reliance Industries group company. structure. These included, among others, the Electricity
Act (2003), National Electricity Policy (2005); Electricity
Mr. Sinha holds a bachelor‘s degree in economics and a
Tariff Policy (2006); Accelerated Power Development
post graduate degree in personnel management/labour
Reform Programme (2002) and Ultra Mega Power Project
and social welfare from Patna University.
Policy (2006). He has also worked in various capacities
with Hindustan Steel Limited (now Steel Authority of
India Limited) and NTPC Limited.

He has received several awards which include, among

others, the Eminent Engineer Award by the Institution
of Engineers; Best Power Man of the Millennium Year
2000 Award by the National Foundation of Indian
Engineers and Power-Telecom Convergence Award 2000
by the Independent Power Producers Association of
India and National Power Training Institute. He is also
an independent director on the board of one of our
Promoters, JSPL.

Mr. Shahi holds a bachelor‘s degree in mechanical

engineering from the National Institute of Technology,
Jamshedpur, a post graduate degree in industrial
engineering from National Productivity Council, Madras,
a post graduate degree in business management from
the Xavier Institute, Ranchi and a diploma in advanced
industrial management from Delft, Holland. He is a
fellow of the World Academy of Productivity Sciences,
Institution of Engineers (India), International Institute
of Electrical Engineers and also a fellow of the Indian
National Academy of Engineering.

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Mr. Arun Kumar Purwar Mr. Shardul Suresh Shroff

Independent Director Independent Director

Mr. Arun Kumar Purwar, 64, is JPL’s independent Director. Mr. Shardul Suresh Shroff, 54, is JPL’s independent
He possesses over 30 years experience in the banking Director. He is the Managing Partner of the law firm
and finance sector. He joined the State Bank of India as a Amarchand & Mangaldas and Suresh A. Shroff & Co. As
probationary officer in 1968 and held several important a corporate attorney for 29 years, he has an extensive
positions in retail, corporate and international banking. experience in areas of infrastructure, projects and
He was appointed as the managing director of the project finance, privatisation and disinvestment, mergers
State Bank of Patiala in December 2000 and played and acquisitions, joint ventures, banking and finance,
an important part in the integration of its treasury capital markets and commercial contracts. He is also a
operations, computerisation of all branches and product leading authority on legal matters related to corporate
innovation. Mr. Purwar took charge at the helm of the governance, media law, technology law and policy and
State Bank of India in November 2002. During his tenure regulatory practices. He has been a member of several
with the State Bank of India, he contributed towards committees appointed by the Government of India,
bringing in technological advances in the bank such including the J.J. Irani Committee (2006) on corporate
as computerisation of branches, introduction of core governance.
banking and trade finance solutions and the expansion
He serves on a number of committees of the
of the ATM network. He retired from the State Bank
Confederation of Indian Industry (CII) and the Federation
of India in May 2006 and has served on the Board
of Indian Chambers of Commerce and Industry (FICCI).
of governors of the Indian Institute of Management,
Lucknow and Xavier Labour Relations Institute, Mr. Shroff holds a bachelor’s degree in commerce
Jamshedpur. from Sydenham College, Mumbai and an L.L.B. from
Government Law College, Mumbai.
He was awarded ‘CEO of the Year’ award from the
Institute for Technology & Management in 2004,
‘Outstanding Achiever of the Year’ award from Indian
Banks Association in 2004 and ‘Finance Man of the Year’
award from the Bombay Management Association in
2006.

Mr. Purwar holds a master’s degree in commerce

from Allahabad University and a diploma in business
administration.

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Mr. Hardip Singh Wirk Mr. Pradeep Kumar Tripathi

Independent Director Independent Director

Mr. Hardip Singh Wirk, 41, is JPL’s independent Director. Mr. Pradeep Kumar Tripathi, 57, is JPL’s independent
In a career spanning over 11 years in the legal advisory Director. In a career spanning approximately 30 years
field, he has handled various cases in Delhi High Court, he has worked with companies including Haryana State
Company Law Board, Consumer Forum and Supreme Industrial & Infrastructure Development Corporation
Court of India. Specialising in foreign investments, real Limited, AT&T India Private Limited, Edutech Informatics
estate and general corporate advice, Mr. Wirk is also an India Limited, Unitech Limited and Unitech Sai Private
Independent Director on JSPL’s Board. Limited. As the President of Unitech Limited and the
Chief Executive Officer of Unitech Sai Private Limited, he
Mr. Wirk holds a bachelor’s degree in law from the Delhi
is responsible for setting up of the proposed integrated
University.
industrial model township in Farukhnagar, Haryana.

Mr. Tripathi holds a bachelor’s degree in arts from the

University of Allahabad and a master’s degree in business
management from the University of Dayton, U.S. He also
holds diplomas in ‘management information system’
and ‘international finance and banking’ from the World
Center for Training & Development, Washington, U.S.

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Mr. Dhirendra Singh

Independent Director

Mr. Dhirendra Singh, 65, is JPL’s independent Director. As

a member of the Indian Administrative Service, he has
served in various capacities with the state Government
of Karnataka and the Government of India and has over
40 years of administrative and public sector experience.
He has previously served as the Chairman and Managing
Director of Mysore Electrical Industries and Vikrant
Tyres Limited; Secretary, Department of Agriculture and
Department of Rural Development and Panchayati Raj,
Government of Karnataka; Joint Secretary, Ministry of
Defence, Additional Secretary, Department of Defence
Production, Secretary, Ministry of Disinvestment and
Union Home Secretary, Government of India. He has
been a consultant with the World Bank in Nigeria to
rationalise schemes on agricultural development and
received the UNESCO fellowship to study adult literacy
programmes in Tanzania, Ethiopia, South Korea and
the Phillipines. Post retirement, he was appointed as
a member of the second commission on Centre-State
Relations in April 2007 in the status of Minister of
State of the Government of India, which completed its
term on March 30, 2010. He is a member of the Indian
Institute of Public Administration and the United Services
Institution of India and the President of the Executive
Committee of the Institute of Peace and Conflict Studies.

Mr. Singh holds a bachelor of science degree from

University of Allahabad, master of arts degree in political
science from the Indian Institute of Public Administration
and a master’s diploma in public administration from the
Institute of Development Studies from the University of
Sussex, United Kingdom.

42 Jindal Power Limited

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A new dawn of
growth and prosperity

Annual Report 2009-10 43

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and Strategies

Directors’ Report
To
The Members,

Your Directors are pleased to present the 15th Annual Report together with the Statement of
Accounts for the year ended on March 31, 2010.

FINANCIAL RESULTS
The financial performance of the Company is given hereunder.

(Rs. in Crores)
Particulars Financial year Financial year
ended 31.03.2010 ended 31.03.2009
Sales & other income 4,054.93 3,314.27
Profit before interest and depreciation 3,517.91 2,764.31
Profit before exceptional item and tax 2,809.68 1,920.44
Profit after tax 2,318.76 1,581.93
Appropriations:
Equity Dividend
(i) Interim 94.42 -
(ii) Final - 86.77
Corporate Tax on Dividend
(i) Interim 15.68 -
(ii) Final - 14.75
Capitalisation of Profit by Bonus Issue 449.60 -
Balance of profit brought forward from previous year 1,499.84 19.43
Balance carried to Balance Sheet 3,258.90 1,499.84

The figures for the current financial year are not comparable with that of previous financial year
as the full plant (4 x 250 MW) had become operational during the financial year 2008-09.

DIVIDEND
Interim dividend of 7% i.e. Re. 0.70/- per share was paid on equity shares of the Company. The
total outlay on account of dividend was Rs. 94.42 Crores. In view of the requirement of funds for
future projects of the Company, your Directors have not recommended final dividend for the year
2009-10 and the interim dividend paid may be treated as final dividend.

OPERATIONAL REVIEW
The Company has achieved Plant Load factor (PLF) of 93.01% and has generated 8,148.07 million
units of power during the year under report. The Plant Availability Factor was 93.17 %. The

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Company has achieved an aggregate income of Rs. 4,054.93 Crores. The profit before tax was Rs. 2,809.68
Crores and profit after tax was Rs. 2,318.76 Crores. Reserves and surplus stood at Rs. 3,258.90 Crores.

The Company’s 1,000 MW plant is a fully integrated plant with captive coal mines where coal is transported
through a 6.9 km pipe conveyor belt and power is evacuated through a 258 km long 400 kv double circuit
dedicated transmission line to the national grid. The plant has its own pipeline and a 18 meter high dam on
the Kurket river to transport the water to, and store the water at the plant. The Company is maintaining and
operating the plant internally. The power is sold through bilateral power purchase agreements, through power
exchanges and to Jindal Steel & Power Limited and other state owned utilities and power distribution and
trading companies.

EXPANDING HORIZONS
The Company has drawn up plans for future expansion and proposes to set up 2,400 MW (4 x 600 MW)
thermal power project at an estimated project cost of Rs. 13,410 Crores in Tamnar, Chhattisgarh adjacent to
the 1,000 MW power plant of the Company. For this purpose, the Company has entered into two Memoranda
of Understanding with the Government of Chhattisgarh (GoC) wherein the GoC has agreed to provide all
necessary assistance and cooperation to the Company for the successful implementation of the project
including provision of coal linkage and allocation of captive coal block.

The project will be implemented by procuring equipment in various packages rather than through a turnkey
project EPC contract. The contract for supply of the main Boiler, Turbine and Generator (BTG) plant package
for 4 x 600MW units and for the erection, testing and transportation of the main plant package has been
placed with Bharat Heavy Electricals Limited (BHEL). Development Consultants Private Limited (DCPL) has been
appointed for providing engineering consultancy services for the project.

The Company is in the process of acquiring land required for the project. The requirement of water for the
project is intended to be sourced from the Mahanadi river for which approval from Water Resource Department
has been received. The application for long term coal linkage has been submitted with the Ministry of Coal,
Government of India and coal linkage for 1200 MW (2X600 MW) has already been granted to the Company.
Environmental clearance is in process and approval for the terms of reference for the project has been received.
The power evacuation will be done through the proposed pooling station to be built by Power Grid Corporation
of India Limited about 10 km from the plant site. The project will be financed on a 3:1 debt equity ratio. The
project has achieved financial closure and the loan documents have been executed with lenders in March,
2010. As per contract agreement with BHEL, the equipment shall be supplied so as to enable commissioning
of 1st Unit by June 2012 and the balance three units after every four months.

LOOKING TO THE FUTURE

Power is the backbone for growth and development of a country. The quality of life of people as well as the
industrial growth and the growth of the economy as a whole are dependent on availability of and access to
affordable and quality power. The Government of India has recognised the power sector as a key infrastructure
sector to sustain the growth of the Indian economy. India is one of the fastest growing large economies in the
world with a GDP growth of 6.7% in fiscal 2009 and 7.2% (estimated) in fiscal 2010. With the growth of Indian
economy, the power sector is also growing continuously.

However, the growth in power sector has been far behind the growth in demand for power which has resulted
in energy and peaking shortages. Today, the country is facing an energy shortage of 10.1% and peak deficit of
13.3% (as per Central Electricity Authority (CEA) Monthly Power Sector Report for March 2010). As compared
to targets, capacity addition has been slow. During the 10th plan period (Fiscal 2002 to Fiscal 2007), capacity

Annual Report 2009-10 45

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and Strategies

addition achieved compared to target capacity addition was 51.5%. During the 11th plan period
(Fiscal 2008 to Fiscal 2012), capacity addition achieved was 56.7% of the target capacity addition
in Fiscal 2008, while in Fiscal 2009 capacity addition achieved was 31.2% of the target capacity
addition. The magnitude of power shortage in India may be gauged from the fact that 56% of
rural India has no access to electricity (as per National Electricity Policy notified in February 2005).
Per capita consumption of power in India is one of the lowest in the world.

This demand-supply gap has provided an opportunity to developers to set up power projects
and sell power on merchant basis (on short term basis) without entering into long-term power
purchase agreements. Such short-term power sale fetches higher premiums, providing attractive
returns to developers of merchant power projects. However, considering the substantial increase
in generation capacity in near future, it is desirable to enter into medium to long term power
purchase agreements for sale of power. With the implementation of the Electricity Act, 2003, the
power sector has thrown open its doors to the private sector for various business opportunities in
the field of generation, transmission, distribution, trading and consultancy.

In line with the above, the Company has drawn aggressive plans to add generation capacity
expeditiously and contribute towards achieving the Government of India’s goal of “power for all
by 2012”.

In addition to the expansion of capacity by setting up 2,400 MW power project at Tamnar,

Chhattisgarh, the Company is developing 1,320 MW (2 x 660 MW) coal-fired power plant based
on super critical technology at Dumka, Jharkhand. This project was being developed previously
by Jindal Steel & Power Limited (JSPL), the holding Company, as a captive power plant pursuant
to the Memorandum of Understanding signed by JSPL with the Government of Jharkhand in
November 2007. However, pursuant to an assignment agreement dated 30th November, 2009,
JSPL has agreed to assign this project to the Company. Ministry of Coal has allocated to JSPL, 205
million tonnes of geological reserves in Amarakonda- Murgadangal coal block for this project.
The first unit of this project is expected to achieve commercial operation by January 2014 and the
entire power plant is expected to achieve full commercial operation by May 2014.

The Company is developing 660 MW coal fired power plant based on super critical technology
at Godda, Jharkhand. This project was being developed previously by Jindal Steel & Power
Limited (JSPL), the holding Company, as a captive power plant pursuant to the Memorandum of
Understanding signed by JSPL with the Government of Jharkhand in July 2005. However, pursuant
to an assignment agreement dated 30th November, 2009, JSPL has agreed to assign this project
to the Company. Ministry of Coal has allocated to JSPL the Jitpur coal block in Godda which has
81 million tonnes of geological reserves for this project. The entire power plant is expected to
achieve full commercial operation by January 2014.

The Company is developing three hydroelectric power projects namely, Etalin hydroelectric
power project (4000MW power generation capacity), Attunli hydroelectric power project (500
MW power generation capacity) and Subansiri Middle hydroelectric power project (1600 MW
power generation capacity) in the state of Arunachal Pradesh in joint venture with Hydro Power
Development Corporation of Arunachal Pradesh Limited (HPDCAPL), a public sector undertaking
set up by the Government of Arunachal Pradesh. The Company has entered into joint venture
agreements with HPDCAPL on 8th December, 2008 for Etalin project and Attunli project and

46 Jindal Power Limited

 Corporate Social Financial
The Board Directors’ Report
Responsibility Statements

on 29th August, 2009 for Subansiri Middle project. Joint venture companies namely Etalin Hydro Electric
Power Company Limited, Attunli Hydro Electric Power Company Limited and Subansiri Hydro Electric Power
Company Limited have been incorporated for development of above projects. Detailed site investigations for
preparation of detailed project report, drilling work and environmental impact assessment and environmental
management studies have been started for Etalin project and Attunli project. The projects are expected to
commence commercial production by 2020.

The Company has received survey license from the Ministry of Energy, Nepal to survey the feasibility of setting
up 454 MW hydroelectric power plant in Chainpur Seti, Nepal. The Company has appointed consultants for
providing optimisation studies and consultancy services for this project. Site investigation work has been
completed and for initial feasibility studies the survey work is progressing.

The Company has also signed a Memorandum of Understanding with the Government of Jharkhand (GoJ)
for 2,640 MW (4 x 660 MW) capacity power plant in that state. Pursuant to the agreement, the GoJ will
extend all reasonable help and cooperation to construct, commission and operate the project and assist in
acquiring land, recommending to the Government of India for allocation of coal blocks for captive coal mining,
permitting drawing of water, connectivity to the Power Grid, infrastructure development and obtaining
necessary clearances.

The Company also proposes to develop a 1,320 MW coal fired power plant in the State of Odisha. JSPL had
entered into a Memorandum of Understanding with the Government of Odisha for setting up this project.
However, pursuant to an assignment agreement dated 30th November, 2009 and subject to regulatory
approvals, JSPL agreed to assign this project to the Company.

The Company has also applied to the Rajasthan Renewable Energy Corporation, Jaipur for grant of approval
for setting up a 500 MW solar power plant and is exploring technology options and suppliers.

BONUS ISSUE AND CHANGES IN THE CAPITAL STRUCTURE

During the year under review, 31,500,000 fresh equity shares were issued and allotted. In view of the proposed
initial public offering (IPO) of equity shares of the Company, the authorised share capital of the Company was
increased to Rs. 3,000 Crores. On 4th December, 2009, 449,600,000 bonus shares were allotted to shareholders
in the ratio of one equity share for every two equity shares held on 27th November, 2009 being the record
date. Consequently, the paid up capital of the Company has increased to Rs. 1,348.80 Crores.

FINANCING
Pursuant to the shareholders approval for initial public offering (IPO) of equity shares of the Company for
raising upto Rs. 7,200 Crores, the Company has filed Draft Red Herring Prospectus (DRHP) with Securities
and Exchange Board of India (SEBI). The funds raised through the IPO will be utilised towards part financing
the cost of construction and development of projects viz. 2,400MW power project at Tamnar, Chhattisgarh,
1,320MW power project at Dumka, Jharkhand and 660MW power project at Godda, Jharkhand and general
corporate purposes.

AN ECOLOGICALLY SENSITIVE COMPANY

The Company is committed to protection of the environment and the promotion of responsible corporate
policies that conserve and optimally utilise resources and at the same time, sustain its economic growth. The
Company intends to focus on developing environment friendly projects.

Prior to the commencement of any project, environmental and social impact studies are undertaken to
determine the effect of the construction and operation of the project at the selected site. Generally, the major

Annual Report 2009-10 47

 Corporate Strengths
About JPL Chairman’s Review Future Projects
and Strategies

pollutants likely to affect the environment at the projects currently under implementation include
carbon dioxide, sulphur dioxide, nitrogen oxide emissions, thermal pollution, liquid effluents and
noise generated during project operations. The Company is committed to complying with all
statutory requirements, environmental regulations and quality standards as per the guidelines
published by the Ministry of Environment and Forest and Government of India from time to
time. The power projects are equipped with devices for the control of pollutants to levels within
required norms. The effluent water generated is treated to be used within the plant boundaries for
watering plantation, gardening, and for various non-critical applications such as dust suppression
systems. Fly ash produced during power generation is supplied to cement manufacturing units
and brick making units.

VALUING OUR HUMAN RESOURCE

The Company believes in attracting, nurturing and developing the best talent and foster a culture
of excellence in performance, continuous learning, promoting creativity and team spirit at the
work place. The Company’s respect and trust in its human resource stems from its time-honoured
legacy that considers employees as true stakeholders. The Company believes in the philosophy
of nurturing talent in-house, promoting a culture of meritocracy and recognising and rewarding
performance.

The Company’s growth, fuelled by the infusion of outstanding human capital, combines talent
and expertise with a passion for excellence. The Company is today employing the top quartile
talent from the industry. The Company’s talent pool that stood at 531 last year touched 818
as on 31st March 2010. Fresh talent is being infused into the company by way of Management
Trainees (MTs) in different disciplines; and also Graduate Engineering Trainees (GETs), attracting
engineering graduates from across the country. Last year, the Company visited the campuses
of the Indian Institute of Technologies (IITs) and took a good number of engineering graduates
to blend with ongoing all Indian selection of GETs. The company has set up a Jindal Institute of
Power Technology to meet the needs of power professionals and it is in its area of operation to
meet the demand of technical manpower.

The Company needs to build a work culture to attract, retain and motivate such a workforce. A
human resource (HR) department has been set up headed by a whole-time director, assisted by
professional and experienced team. The HR department continuously works on developing the
skills and talent of the workforce by means of technical, professional, emotional and personality
development programmes. The Company has set up a system of performance evaluation to
reward deserving colleagues with higher responsibilities. Merit, performance, domain knowledge,
managerial abilities, initiative and leadership qualities are given their due importance. The employee
benefit policies have been revamped/ revisited based on feedback received from a cross-section
of employees. This includes restructuring of the remuneration structure in consultation with
Hewitt Associates. The Company has also partnered with Mercer Consulting for the formulation
of HR policies and systems catering to its International business requirements. Besides, employee
welfare schemes, safety measures and other facilities at the factory premises are in compliance
with applicable laws.

CITIZEN OF SOCIETY
As part of its corporate and social responsibility philosophy, the Company believes that overall
sustainable community development is essential for the growth of the power industry. A Samiti,
named O.P.Jindal Samaj Kalyan Samiti (Samiti), has been formed to improve living conditions of the
underprivileged and make a positive difference in their lives. The Samiti works with underprivileged
communities to develop resources in the region, support locals to develop professional skills and

48 Jindal Power Limited

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The Board Directors’ Report
Responsibility Statements

enhance the quality of life in adopted villages through education, healthcare and civic amenities. In 2005,
the Samiti adopted six villages in Tamnar, and a further 32 villages were subsequently adopted and included
in different welfare programmes. These programmes focused on the development of education, building,
health and family welfare, animal husbandry, infrastructure development, the empowerment of women and
income generation. The Company has also focused on providing proper healthcare to villagers and eradicating
diseases, such as malaria and filaria. In addition, the Company has organised various mobile medical camps,
family planning camps and AIDS awareness camps in these villages.

The Company has also undertaken various initiatives in the education industry, including the establishment of
Anganwadi Centres and the OP Jindal Merit Scholarship, the distribution of furniture to different schools, the
establishment of the Navjyoti Programme, Adult Education Centers and the Dattak Putri Programme. The OP
Jindal Thermal Power School was also founded in 2006.

The Jindal Institute of Power Technology, or JIPT, was established by Jindal Education and Welfare Society,
an entity associated with Jindal Steel & Power Limited to contribute towards creating a national pool of
trained workforce on power generation and management. The institute’s objective is to develop a competent
and skilled manpower of world standards by imparting technical and vocational training skills in appropriate
occupations. JIPT conducts specialised need-based training programmes as well as power specific graduate
and post graduate programmes, involving research, renovation, refurbishment and modernisation of power
plant processes and equipment.

The Company is committed to developing extensive green belts in the plant vicinity. These endeavours have
been carried out in coordination with the local forest departments. The Company has also installed efficient
air pollution control devices, is using recycled wastewater, have wet and dry ash collection systems for fly ash
management and carry out environmental awareness campaigns.

FIXED DEPOSITS
Your Company has not accepted fixed deposits from the public within the meaning of section 58A of The
Companies Act, 1956 read with Companies (Acceptance of Deposits) Rules, 1975.

AUDIT COMMITTEE
The Audit Committee comprises of Shri R. V. Shahi, Shri Arun Kumar Purwar and Shri Hardip Singh Wirk,
independent directors and Shri Sushil K. Maroo, Dy. Managing Director as its members. Shri R. V. Shahi is
Chairman of the Committee. The Audit Committee has been vested with role and powers as mentioned in
section 292A of the Companies Act, 1956 and clause 49 of the listing agreement. During the year under
review, the Committee met six times on 26th May, 2009, 28th July, 2009, 30th October, 2009, 12th November,
2009, 18th December, 2009 and 27th January, 2010.

DIRECTORS
The Board of Directors comprises of twelve directors, of which six are independent directors.
Shri Arun Kumar Purwar, Shri Shardul Suresh Shroff, Shri Pradeep Kumar Tripathi, Shri Hardip Singh Wirk and
Shri Ashok Kumar Basu were appointed as Additional Directors on 18th December, 2009. Shri Ashok Kumar
Basu resigned from directorship with effect from 28th January, 2010. Shri Dhirendra Singh was appointed
as an Additional Director (independent) on 27th April, 2010. Dr. Rajendra Prasad Singh was re-designated as
Executive Vice Chairman with effect from 24th March, 2010.

As per provisions of Section 260 of the Companies Act, 1956, Shri Arun Kumar Purwar, Shri Shardul Suresh
Shroff, Shri Pradeep Kumar Tripathi, Shri Hardip Singh Wirk and Shri Dhirendra Singh hold office as Additional
Directors upto the ensuing Annual General Meeting. The Company has received notices from these directors
proposing their respective candidature as Director liable to retire by rotation in terms of Section 257 of the
Companies Act, 1956.

Annual Report 2009-10 49

 Corporate Strengths
About JPL Chairman’s Review Future Projects
and Strategies

As per Section 256 of the Companies Act, 1956, Shri Ram Vinay Shahi and Shri Anand Goel will
retire by rotation at ensuing Annual General Meeting and, being eligible, have offered themselves
for reappointment.
AUDITORS
M/s Lodha & Co., Chartered Accountants, Statutory Auditors of the Company retire at the
ensuing Annual General Meeting of the Company and being eligible have offered themselves
for reappointment. The Company has received communication from them to the effect that
their appointment, if made, would be within the limits prescribed under section 224 (1B) of the
Companies Act, 1956. It is recommended that they may be reappointed as Statutory Auditors of
the Company for the financial year 2010-2011.
PARTICULARS OF CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN
EXCHANGE EARNINGS AND OUTGO
Information pursuant to Section 217 (1) (e) of the Companies Act, 1956 read with Rule 2 of the
Companies (Disclosure of Particulars in the Report of Board of Directors) Rules, 1988, regarding
conservation of energy, technology absorption and foreign exchange earnings and outgo is given
in Annexure I forming part of this report.
PARTICULARS OF EMPLOYEES
The particulars of employees as required under Section 217 (2A) of the Companies Act 1956 read
with Companies (Particulars of Employees) Rules 1975, as amended, for the year ended 31st
March 2010, are given in Annexure II forming part of this report.
DIRECTORS’ RESPONSIBILITY STATEMENT
Pursuant to the requirement under sub section 2AA of Section 217 of the Companies Act, 1956
with respect to the Directors Responsibility Statement, it is hereby confirmed:
i) that in preparation of the annual accounts for the financial year ended March 31, 2010, the
applicable accounting standards had been followed along with proper explanations relating
to material departures.
ii) that the Directors had 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 the Company at the end of financial year and of the profit
of the Company for that year.
iii) that the Directors had taken proper and sufficient care for the maintenance of adequate accounting
records in accordance with the provisions of the Companies Act, 1956 for safeguarding the
assets of the Company and by preventing and detecting fraud and other irregularities.
iv) that the Directors had prepared the accounts for the financial year ended March 31, 2010,
on a ’going concern basis’.
ACKNOWLEDGEMENT
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 Banks, the Government
of India, the Government of Chhattisgarh, the Government of Jharkhand, the Government of
Odisha and also the suppliers of the machinery and equipment.

For & on Behalf of the Board

Place: New Delhi Naveen Jindal

Date: 3rd May, 2010 Chairman

50 Jindal Power Limited

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The Board Directors’ Report
Responsibility Statements

Annexure-I
PARTICULARS REQUIRED UNDER THE COMPANIES (DISCLOSURE OF PARTICULARS IN THE REPORT OF
BOARD OF DIRECTORS) RULES, 1988
A. Conservation of energy:
a) Energy conservation measures taken:
1. Cross Country Pipe Conveyor loading was gradually increased from 907 TPH (September 2009)
to 1015.38 TPH (February 2010) as a result of which energy was saved by 0.2648 Mus during
the financial year.
2. Water Treatment Plant: Alum & Lime dozing operation has been replaced with Poly Aluminum
Chloride (PAC) for the treatment of clarified water. Power consumption of PAC dozing pump is
very less as compared with Alum & Lime dozing pumps. As a result energy was saved by 0.2244
Mus during the financial year.
3. Water Treatment Plant: Energy saving in Pre-treatment plant at Flash mixer agitators by using
natural turbulence of water. As a result energy was saved by 0.05892 Mus during the financial
year.
4. Unit no. 4: Two condenser vacuum pumps were running. Helium Leak detection test carried
out to examine ingress air in the condenser vacuum system. Leakages were arrested and one
vacuum pump was made off. As a result energy was saved by 0.0324 Mus during the financial
year.
5. Installation and commissioning of 25 Kw solar power generators (20 Kw on the roof of TG
Building and 5Kw on the roof of Guest House) has been done in March, 2010.
6. Energy Audit was carried out during the year by an agency approved by Chhattisgarh Renewable
Energy Development Authority.
7. Automatic ON/OFF of outdoor lightings is photocell control hence reducing power consumption
as compared to Timer based control.
8. Electronic chokes are used instead of copper chokes for indoor lighting resulted in energy
saving.
9. Variable Frequency Drives are used in selected application resulted in energy saving.
10. Improved operation & maintenance practices are adopted. Idle & parallel running of equipment
during unit shutdown is avoided, Optimum loading of equipment closer to the design capacity
by improving the unit loading factor & plant availability to improve efficiency.
11. Units are being operated very near to rated parameters to maintain optimum efficiency.
12. For air conditioning, vapour absorption machine (VAM) are used which is very energy efficient.
13. Water from ash dyke is being recycled for its reuse in wet ash handling system. So energy
consumption for feeding of raw water from Dam to plant is reduced and goal of water
conservation is also achieved.
b) Additional investments and proposals, if any, being implemented for reduction of consumption
of energy:
1. Energy audit of compressors, coal handling plant, performance study of cooling towers, thermal
audit of insulations are identified to be carried out during 2010-2011 by National Productivity
Council.
2. Study to provide VFD in condensate extraction pump and ID Fan are under progress.

Annual Report 2009-10 51

 Corporate Strengths
About JPL Chairman’s Review Future Projects
and Strategies

c) Impact of the measures at (a) and (b) for reduction of energy consumption
and consequent impact on the cost of production of goods:
1. Auxiliary energy consumption of plant is reduced.
2. Water conservation through recycling of water.
3. Renewable Energy development.
d) Total energy consumption and energy consumption per unit of production: N.A.
B. Technology Absorption
e) Efforts made in technology absorption as per Form B given below:
FORM B
(Form for disclosure of particulars with respect to absorption)
Research and Development (R&D):
1. Specific areas in which R&D carried out by the company:
Being a new project, all the available methods of energy conservation
were incorporated at the design stage itself. Further work in R&D for
energy conservation is not yet started.
2. Benefits derived as a result of the above R&D: N.A.
3. Future Plan of action:
Use of solar energy for other areas in plant/ Rabo Dam/ Washery/ Colony etc.
4. Expenditure on R&D:
a. Capital: N.A.
b. Recurring: N.A.
c. Total N.A.
d. Total R&D expenditure as a percentage of total turnover: N.A.
Technology Absorption, Adaptation and Innovation:
1. Efforts in brief, made towards technology absorption, adaptation and innovation: N.A.
2. Benefits derived as a result of the above efforts: N.A.
3. In case of imported technology (imported during the last 5 years reckoned from
the beginning of the financial year) following information may be furnished.
a) Technology Imported: N.A.
b) Year of Import: N.A.
c) Has technology been fully absorbed: N.A.
d) If not fully absorbed, areas where this has not taken
place, reason therefore and future plans of action. N.A.
C. Foreign Exchange Earnings and Outgo
i. Activities relating to export: N.A.
ii. Initiatives taken to increase export: N.A.
iii. Development of new export market for products and services
and export plans: N.A.
iv. Foreign Currency Used: Rs. 2.46 Crores
Foreign Currency Earned: Nil

52 Jindal Power Limited

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The Board Directors’ Report
Responsibility Statements

Annexure II
PARTICULARS OF EMPLOYEES

Information as per Section 217 (2A) of the Companies Act 1956 read with Companies (Particulars of Employees)
Rules 1975 and forming part of Directors’ Report for the year ended on 31st March, 2010.
A. Employed throughout the year and were in receipt of remuneration of not less than Rs. 24,00,000
per annum.

Sl. No. Name Age Designation/ Remuneration Qualification Date of Experience Last Designation Period for
(Yrs.) Nature of (In Rs.) Commencement (Yrs.) Employment which Post
Duties of Employment held held
1 Dr. Rajendra 61 Executive Vice 1,49,29,048 PG (Mech. Engg.), PG Dip. 28.01.2009 38 Power Grid Chairman & 17 years
Prasad Singh Chairman in Iron & Steel, Conferred Corporation Managing 5 months
Degree of Doctor of Science of India Ltd. Director
(Honoris Causa)By BHU
2 Sushil Kumar 48 Dy. Managing 3,06,66,396 Chartered Accountant 18.06.2008 25 Jindal Steel Wholetime 7 years
Maroo Director & Power Director 6 months
Limited
3 Kishore 62 Wholetime 1,50,24,293 M.A. Pers. Mgt./Labour & 01.09.2008 38 Navi Mumbai Executive 2 years
Kumar Sinha Director Social Welfare Special President 8 months
Economic – HR
Zone
4 Pradip Kumar 61 Wholetime 38,17,009 B.Sc. (Phy. Hons.), 01.03.2009 34 NTPC Ltd. Executive 26 years
Chakraborty Director B.Tech., M.Tech. (Instt.) and Kanti Director 5 months
Bijlee & Chief
Utpadan Executive
Nigam Ltd. Officer
5 Anil Kumar 58 Executive 93,09,432 B.E. (Mech. Engg.) 01.08.2008 33 Punj Llyod Executive 5 years
Khanna Director Ltd. Vice 10 months
President
6 Bibekanand 55 Sr. Vice 44,32,524 B. Tech. - Civil 26.12.2008 33 Navi Mumbai President 10 months
Yadav President Special
Economic
Zone
7 Bharat Rohra 53 Sr. Vice 55,24,704 B. Tech. - Civil 18.02.2009 31 Universal Sr. Vice 4 months
President Infra President
Consultants
8 Himadri 59 Vice President 37,05,300 B.Tech. - Electrical 26.02.2009 35 Jaypee Vice 1 year
Biswanath Karcham President 7 months
Ganguly Hydro Power
Corporation
Ltd.
9 Vishnu 53 Assistant Vice 43,00,932 B. Tech - Electrical 06.09.2007 30 NTPC Ltd. DGM (O&M) 24 years
Chandra President 5 months
Vishwakarma
10 Gautam Pal 54 Assistant Vice 38,24,928 B.E - Mechanical 01.07.2008 28 NTPC Ltd. DGM 21 years
President 1 month
11 Mukesh 44 Sr. General 37,69,392 B.Tech - Mech. 11.11.2008 22 Lanco Deputy 8 months
Kumar Sinha Manager Infratech General
Ltd. Manager
12 M. K. Prasad 52 Sr. General 40,48,536 B. Tech Electrical 04.12.2008 29 Suzlon Head 2 years
Manager Infrastructure Operations 2 months
Services Ltd.
13 Sanjeev 45 Sr. General 42,39,504 MBA 15.01.2009 22 Essar General 3 years
Kumar Manager – HR Investment Manager
Ltd. - HR

Annual Report 2009-10 53

 Corporate Strengths
About JPL Chairman’s Review Future Projects
and Strategies

Sl. Name Age Designation/ Remuneration Qualification Date of Experience Last Designation Period for
No. (Yrs.) Nature of (In Rs.) Commencement (Yrs.) Employment which Post
Duties of Employment held held
14 K.R. Nagendra 51 Sr. General 35,09,628 M.Tech (Power 09.02.2009 24 Universal Vice 1 month
Kumar Manager System), Infra President
B.Tech (Elec. & Consultants
Electronics)
15 Jasbir Singh 43 Sr. General 37,09,956 B.E. – 09.02.2009 22 Universal Vice 4 months
Manager Electrical, Infra President
MBA Consultants
16 Ashok Sharma 50 General 24,97,872 CA, CS 01.02.2008 24 BPTP General 1 year
Manager Manager 7 months
17 Debasis 51 General 28,67,844 B.Tech - 14.10.2008 28 Hindustan Manager 10 years
Chattopadhyay Manager Mechanical Cables 1 month
18 Sanjay Kaul 45 Sr. Dy. 31,88,136 B.E. 01.05.2008 19 Reliance Chief 2 years
General (Mechanical), Energy Manager 2 months
Manager MBA
(Marketing)
19 Joy Dev 44 General 30,34,704 B.E. - 09.07.2007 23 NTPC Ltd. Sr. Manager 20 years
Chakravarti Manager Mechanical 10 months
20 Sunil Agrawal 41 Sr. Dy. 32,48,316 C.A. 16.06.2007 17 SL Sarda & DGM 3 years
General ML Sarda 6 months
Manager Mines
21 Girdhari Lal 54 Sr. Dy. 31,20,276 M.E. - Water 15.11.2004 33 Narmada Assistant 6 years
Dwivedi General Resource Valley Dev. Manager 2 months
Manager Development, Auth.
B.E. Civil,
PG Diploma
- Water
Resource
Development
22 Shishir Sinha 52 Sr. Dy. 26,16,000 B.Sc- 12.05.2007 26 Central Coal SE - CP 26 years
General Engineering, Field Ltd. 8 months
Manager PG Diploma
- Electrical &
Electronics
23 V.N. Bangde 44 Sr. Dy. 24,44,424 B.E. - 26.09. 2007 19 Reliance Manager 1 year
General Mechanical Energy Ltd. 6 months
Manager
24 S.L. Prabhu 42 Sr. Dy. 24,44,412 B.E - 12.10. 2007 18 Dahanu TPS, Manager 1 year
General Mechanical, Reliance
Manager B.O.E - Energy Ltd.
Mechanical
25 B.N. Nellikwar 54 Sr. Dy. 24,87,900 B.E - Electrical 03.12.2007 30 MSPGCL Dy. Executive 4 years
General Engineer 5 months
Manager
26 Debashish 48 Dy. General 25,68,168 B.E. Electrical, 14.04.2008 23 NTPC Ltd. Sr. Manager 26 years
Banerjee Manager MBA Finance, 8 months
B.O.E.
Electrical
27 Rajeev Jain 38 Dy. General 34,00,308 CS, CA, ICWA 01.05.2004 15 Bharat Group Manager 1 years
Manager 2 months
28 Devendra Nath 55 Dy. General 26,51,664 Diploma 01.12.2004 32 Ronuk Production 4 years
Rajput Manager Mechanical Industries Engineer 6 months
29 Hemlata Vyas 38 Dy. General 25,66,632 B.E. (Power 09.02.2009 17 Universal Dy. General 4 months
Manager System), MBA Infra Manager
Consultants
30 Atul Garg 38 Deputy 28,02,426 M.Tech 17.01.2005 14 Hindalco Dy. Manager 8 years
General (Mechanical) Ind. Ltd 10 months
Manager
31 Prakash 40 Asst. General 24,16,377 B.E. 12.12.2005 16 Reliance Addl. 1 year
Chandra Manager (Electrical) Energy Manager 2 months
Pandey

54 Jindal Power Limited

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The Board Directors’ Report
Responsibility Statements

B. Employed for part of the year and were in receipt of remuneration of not less than Rs. 2,00,000
per month.

Sl. Name Age Designation/ Remuneration Qualification Date of Experience Last Designation Period
No. (Yrs.) Nature of Duties (in Rs.) commencement (Yrs.) employment for
of employment held which
post held
1 Vinod Kumar 60 Chief Executive 46,82,221 B.Sc. (Mechanical) 03.08.2009 38 North East Chairman & 1 year
Abbey Officer – Hydro Electric Power Managing
Projects Ltd. Director
2 Chokkanna 60 President - Hydro 33,26,074 B.E. (Electrical) 26.08.2009 35 TCE Consulting Vice President 1 year
Doreswamy 11
Prahlad months
3 Umesh 50 President - Projects 46,21,677 B.Sc. Engg. (Mech.) 16.03.2009 28 Eta-Ascon Director 4
Chopra Group, UAE (Project) months
4 Mahim Singh 47 Sr. Vice President – 47,93,159 ICWA, CA 01.09.2009 23 Jindal Steel & Sr. Vice 1 year
Mehta Finance & Accounts Power Ltd. President – 5
Finance & months
Accounts
5 Surinder Pal 54 Sr. Vice President 55,26,699 B.E. – Mech. 24.03.2008 32 Reliance Energy Vice President 1 year
Anand 2
months
6 Sanjiv Kumar 55 Sr. Vice President 29,15,791 B.Sc. (Mech Engg.) 12.09.2008 31 Lanco Infratech ED-Projects 6
Prasad - EPC Ltd. months
7 Ram Niwas 58 Sr. Vice President 30,82,712 B.Tech - Mechanical 29.06.2009 34 NTPC Ltd. Assistant 27 years
General
Manager-OS
8 R.S. Tanwar 56 Sr. Vice President 22,42,613 PG Diploma 26.09.2009 36 Mundra Port VP-HR & 2 years
- Personnel & SEZ Admin. 2
Management, months
Labour Law & Labour
Welfare, Personnel
(Admin. Mgt.),
Diploma - Training &
Development, LLB
9. Raj Kishore 64 Sr. Vice President 8,71,792 B.Sc. Engineering 1.12.2009 42 Jindal Steel & Sr. Vice 1 year
Singh (Power) (Mechanical) Power Ltd. President – 9
Power months
10 Prem Bijoy 53 Sr. Vice 15,15,716 Bachelor of Business 1.12.2009 31 Jindal Steel & Sr. Vice 1 year
Kumar President (HR & administration (BBM), Power Ltd. President
Charan Administration) MBA - HR - HR &
Administration
11 A.N. Sar 52 Vice President 27,42,585 B.Sc. - Electronics 17.07.2009 27 NTPC Ltd. Assistant 22 years
General 9
Manager months
12 Basant Singh 54 Vice President 39,57,049 B. E. (Civil) 14.04.2009 34 NTPC Ltd. General 3 years
Bisht Manager 6
months
13 Mahesh 50 Vice President 10,78,868 B.E. (Mechanical), 16.12.2009 28 Essar General 2 years
Chandra MBA Manager 5months
Bhardwaj
14 Amitava 50 Vice President 11,48,149 B. E. (Civil) 09.12.2009 27 Punj Lloyd Sr. General 1 year
Samanta Manager 5
months
15 Arun Kumar 55 Vice President 21,32,964 M.Sc.-Engg(Civil) 24.08.2009 29 WAPCOS Ltd Chief Engg. 21 years
Gaur 2
months
16 Harpal Singh 51 Vice President 10,58,687 A.M.I.E (Civil) 18.01.2010 25 HCC GM 3 years
11
months

Annual Report 2009-10 55

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Sl. Name Age Designation/ Remuneration Qualification Date of Experience Last Designation Period for
No. (Yrs.) Nature of (in Rs.) commencement (Yrs.) employment which post
Duties of employment held held
17 C. Kanan 47 Vice President 28,95,678 B.E. Mech., 13.02.2009 25 Universal Infra Vice President 10 months
– Finance & ICWA Consultants
Accounts
18 Ravi Sankar 50 Assistant Vice 15,50,274 M.Sc (Tech) 29.10.2009 25 Maytas Head - Design 11 months
Kommu President - C&I Infrastructure Engg.
19 Manoj Sinha 51 Sr. General 16,90,998 B.E. (Elec) 01.10.2009 28 EAS India General 1 year
Manager Manager 9 months
20 Pravash 42 General 18,56,169 B.E. (Mech), 01.09.2009 20 Reliance Power Assistant Vice 1 year
Kumar Biswal Manager MBA President 1 month
21 Subhash 48 General 16,98,277 B.E. 01.09.2009 23 WAPCOS Ltd. Addl. Chief 17 years
Chand Manager (Electric & Engg. 3 months
Electronics)
22 Pradeep 39 Sr. Dy. General 13,30,645 Chartered 21.10.2009 13 Essar Dy. General 2 years
Mehta Manager Accountant Manager 3 months
23 Gopi Ram 53 Sr. Dy. General 17,50,002 M.Sc (Tech), 01.10.2009 28 Geopatro Chief Engg. 10 months
Saini Manager MBA
24 Durga Prasad 50 Sr. Dy. General 17,88,886 B.Sc. - 11.08.2009 24 BGR Energy Sr. Dy. General 11 months
Deogam Manager (Mech) Manager
25 K. R. 41 Sr. Dy. General 26,23,092 B.E. - 03.07.2009 19 BALCO Assistant 1 year
Murugan Manager Mechanical General 3 months
Manager
26 Sukhbir 37 Dy. General 24,47,354 B.Tech. 21.08.1997 15 Modern Systems Sales Cum 2 years
Singh Manager (Electrical Ltd Service
& Commu), Engineer
PGDTPP
27 Kapil Mantri 29 Asst. General 18,83,945 PGP in 01.09.2009 6 Jindal Steel & Asst. General 2 years
Manager Mgmt, B.E. Power Ltd. Manager 2 months
(Computer
Science)

Notes:

1. Remuneration includes salary, allowances, medical benefits, leave travel allowance, bonus,
Company’s contribution to PF and Superannuation funds, leave encashment and monetary value
of perquisites at cost to the Company and commission on net profits, if any, Individual variable pay,
Group variable pay, management incentive etc. Individual variable pay and Group variable pay for
2009-10 will be paid in 2010-11.

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. The services of all the employee are contractual in nature. Other terms and conditions are as per
Company’s Rules.

4. None of the employees mentioned above is a relative of any Director of the Company.

For & on Behalf of the Board

Place: New Delhi Naveen Jindal

Date: 3rd May, 2010 Chairman

56 Jindal Power Limited

 Corporate Social Financial
The Board Directors’ Report
Responsibility Statements

Financial Statements

Standalone
Auditors’ Report 58

Annexure to Auditors’ Report 59

Balance Sheet 62

Profit & Loss Account 63

Schedules to Financial Statements 64

Significant Accounting Policies and Notes to Accounts 72

Balance Sheet Abstract 84

Cash Flow Statement 85

Statement Pursuant to Section 212 (8) 86

Consolidated
Auditors’ Report 87

Balance Sheet 88

Profit & Loss Account 89

Schedules to Financial Statements 90

Significant Accounting Policies and Notes to Accounts 98

Cash Flow Statement 104

Statement Pursuant to Section 212 105

Annual Report 2009-10 57

 Corporate Strengths
About JPL Chairman’s Review Future Projects
and Strategies

Auditors’ Report to the Members of Jindal Power Limited

We have audited the attached Balance Sheet of JINDAL POWER LIMITED, as at 31st March, 2010 and the Profit and Loss
Account and also the Cash Flow Statement of the Company for the year ended on that date, annexed thereto. These
financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on
these financial statements based on our audit.
We conducted our audit in accordance with the auditing standards generally accepted in India. Those standards require
that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of
material misstatements. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures
in the financial statements. An audit also includes assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall financial statement presentation. We believe that our audit
provides a reasonable basis for our opinion.
1. As required by the Companies (Auditors’ Report) Order, 2003 (as amended) (herein after called The Order) issued
by the Central Government of India in terms of Section 227 (4A) of the Companies Act, 1956, and on the basis of
such checks of the books and records of the Company as we considered appropriate, we enclose in the Annexure
a statement on the matters specified in paragraphs 4 and 5 of the said Order.
2. Further to our comments in the Annexure referred to in Paragraph 1 above, we report that:-
(a) We have obtained all the information and explanations, which to the best of our knowledge 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 the Company so far as appears
from our examination of those books;
(c) The Balance Sheet, Profit & Loss Account and Cash Flow Statement referred to in this report are in agreement
with the books of account;
(d) In our opinion, the Balance Sheet and Profit & Loss Account and Cash Flow Statement referred to in this report
comply with the Accounting Standards referred to in sub section (3C) of section 211 of the Companies Act,
1956;
(e) On the basis of written representations received from the Directors and taken on records by the board of
Directors, we report that none of the Directors of the Company is disqualified as on 31st March 2010 from
being appointed as a Director of the Company in terms of clause (g) of sub section (1) of section 274 of the
Companies Act, 1956;
In our opinion and to the best of our information and according to the explanations given to us, the said accounts read
together with Significant Accounting Policies and Notes thereon, give the information required by the Companies Act,
1956 in the manner so required and give a true and fair view in conformity with the accounting principles generally
accepted in India:
i) In the case of Balance Sheet, of the state of affairs of the Company as at 31st March 2010;
ii) In the case of the Profit & Loss Account, of the Profit of the Company for the year ended on that date; and
iii) In the case of Cash Flow Statement, of the Cash Flows of the Company for the year ended on that date.

For LODHA & CO.

Chartered Accountants

(Saurabh Chhajer)
Partner
Place: New Delhi Membership No.: - 403325
Date: 3rd May, 2010 Firm Registration No.: 301051E

58 Jindal Power Limited

 Corporate Social Financial
The Board Directors’ Report
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Annexure to the Auditors’ Report

Referred to in paragraph 1 of our Report of even date to the Members of JINDAL POWER LIMITED on the Financial Statements for
the year ended 31st March 2010.

1. (a) The Company has maintained proper records in respect of its fixed assets showing full particulars, including
quantitative details and situation of fixed assets.
(b) We have been informed that certain fixed assets of the Company have been physically verified by the
Management according to a phased programme of periodical verification which, in our opinion, is reasonable
having regard to the size of the Company and nature of fixed assets. As informed, no material discrepancies
between book records and physical inventory have been noticed in respect of fixed assets physically verified
during the year.
(c) As per records and information and explanations given to us, no substantial part of fixed assets has been
disposed off during the year.
2. (a) As informed, the inventory and stores & spares of the company, have been physically verified by the
management at the end of the year, and in respect of stores & spares there is perpetual inventory system
and a substantial portion of the stocks have been verified during the year. In our opinion, the frequency of
verification is reasonable.
(b) According to information and explanation given to us, the procedures of physical verification of inventory
followed by the management are reasonable and adequate in relation to the size of the company and nature
of its business.
(c) In our opinion and according to the information and explanation given to us, the company is maintaining
proper records of inventory and the discrepancies noticed on such physical verification of inventory as
compared to book records were not material.
3. As informed to us, the Company has neither taken nor granted any loan, secured or unsecured, to companies, firms
or other parties covered in the register maintained under section 301 of the Companies Act, 1956. Accordingly, the
provisions of clause 4 (iii) (b) to (d) and (f) & (g) of the Order are not applicable.
4. In our opinion and according to the information and explanations given to us, having regard to the explanations
that certain items purchased/sold are of special nature for which, as explained, suitable alternatives sources do not
exist for obtaining comparative quotations, taking in to consideration the quality, usage and such other factors,
there are adequate internal control systems commensurate with the size of the company and nature of its business
with regard to purchase of inventory, fixed assets and for the sale of energy /goods and services. Further on the
basis of examination of the books and records of the company, carried out in accordance with the generally
accepted auditing principles in India, and according to the information and explanation given, we have neither
come across nor have we been informed of any instance of major weakness in internal control systems.
5. (a) To the best of our knowledge and belief and according to the information and explanations given to us, we
are of the opinion that the particulars of contracts or arrangements that need to be entered in the register
maintained under section 301 of the Companies Act, 1956 have been so entered.
(b) In our opinion and having regard to our comments in paragraph 4 above, and according to the information
and explanations given to us, transactions made in pursuance of contracts or arrangements entered into the

Annual Report 2009-10 59

 Corporate Strengths
About JPL Chairman’s Review Future Projects
and Strategies

register maintained under section 301 of the Companies Act, 1956 and exceeding the value of rupees five
lacs in respect of each party during the year have been made at prices which are reasonable having regard to
prevailing market prices at the relevant time where such market prices are available.
6. The company has not accepted any deposits from public with in the meaning of section 58A, 58AA and other
relevant provisions of the Companies Act, 1956 and the rules framed there under. We have been informed that no
order has been passed by the Company Law Board or National Company Law Tribunal or Reserve Bank of India or
any Court or any other tribunal in this regard.
7. In our opinion, the Company has an internal audit system commensurate with the size of the company and nature
of its business.
8. On the basis of records produced to us, we are of the opinion that, prima facie, the cost records prescribed by the
Central Government of India under Section 209(1) (d) of the Companies Act, 1956 have been maintained. However,
we are not required to make a detailed examination of such books and records.
9. (a) In our opinion and according to the information and explanations given to us, undisputed statutory dues
including Provident Fund, Investor Education and Protection Fund, Employees’ State Insurance, Sales Tax,
Income Tax, Wealth Tax, Service Tax, Custom duty, Excise duty, Cess and other material statutory dues, to the
extent applicable, have generally been regularly deposited during the year with the appropriate authorities.
Read with note no. 7(I) of Notes to Accounts, no undisputed amount payable in respect of the aforesaid
statutory dues were outstanding as at the last day of the financial year for a period of more than six months
from date they became payable.
(b) In our opinion and information and explanations given to us, there are no dues in respect of Income Tax,
Sales Tax, Service Tax, Custom duty, Wealth tax, Excise duty and Cess that have not been deposited with the
appropriate authorities on account of any dispute.
10. The Company does not have accumulated losses at the end of financial year and has not incurred cash losses during
the current financial year and in the immediately preceding financial year.
11. In our opinion, on the basis of books and records examined by us and according to the information and explanations
given to us, the company has not defaulted in repayment of dues to financial institution or banks. The Company
does not have any dues to debenture holders during the year.
12. In our opinion and according to the information and explanations given to us, the company has not granted any
loans and advances on the basis of security by way of pledge of shares, debentures and other securities.
13. The Company is not a chit fund or a nidhi /mutual benefit fund /society, therefore, the provisions of clause 4 (xiii)
of the said Order are not applicable to the company.
14. According to the information and explanations given to us, the Company is not dealing in or trading in shares,
securities, debentures and other investments, therefore, the provisions of clause 4 (xiv) of the said Order are not
applicable to the company.
15. In our opinion and according to the information and explanations given to us, the company has not given any
guarantee for loans taken by others from banks or financial institutions.
16. In our opinion and on the basis of information and explanations given to us, the term loans raised during the

60 Jindal Power Limited

 Corporate Social Financial
The Board Directors’ Report
Responsibility Statements

year by the Company were applied for the purposes for which loans were obtained where such end use has
been stipulated by the lender, however pending utilisation during the course of the year the loan fund has been
temporarily deployed in mutual funds.
17. According to the information and explanations given to us and on the basis of an overall examination of the
balance sheet of the company, no funds raised on short term basis have been used for long term investment.
18. During the year the Company has made preferential allotment of equity shares to a party covered in the register
maintained under section 301 of the Companies Act, 1956. Based on management representation and according
to information and explanations given to us, read with note no. 19 of notes to accounts, the price at which such
shares have been issued is not prejudicial to the interest of the Company.
19. The company has neither issued nor had any outstanding debentures during the year.
20. The company has not raised any money through public issue during the year. However, this is to be read with
note no. 1 of notes to accounts.
21. During the course of our examination of the books and records of the Company carried out in accordance with
generally accepted auditing principles in India, we have neither come across any instances of material fraud on or by
the Company, noticed or reported during the year, nor we have been informed of such case by the management.

For LODHA & CO.

Chartered Accountants

(Saurabh Chhajer)
Partner
Place: New Delhi Membership No.: - 403325
Date: 3rd May, 2010 Firm Registration No.: 301051E

Annual Report 2009-10 61

 Corporate Strengths
About JPL Chairman’s Review Future Projects
and Strategies

Balance Sheet as at 31st March 2010

(Rs. in Crores)
Schedule As at As at
Particulars
No. 31.03.2010 31.03.2009
SOURCES OF FUNDS
Shareholders’ Funds
Share Capital 1 1,348.80 867.70
Reserve & Surplus 2 3,258.90 1,499.84
4,607.70 2,367.54
Loans Fund
Secured Loans 3 1,065.26 3,132.76
Unsecured Loans 4 300.00 -
Deferred Tax Liabilities ( Net) (Refer note no.11 of schedule 17 B) 130.48 117.27
1,495.74 3,250.03
TOTAL 6,103.44 5,617.57
APPLICATION OF FUNDS
Fixed Assets 5
Gross Block 4,174.71 4,135.06
Less: Depreciation 1,141.17 623.36
Net Block 3,033.54 3,511.70
Capital Work in Progress (including Capital advances) 6 890.30 810.33
(Refer Note No. 4 of Schedule 17B)
TOTAL 3,923.84 4,322.03
Investments 7 64.67 244.43
Current Assets, Loans & Advances 8
Inventories 73.54 27.27
Sundry Debtors 178.91 182.65
Cash and Bank balances 16.02 334.13
Loans & Advances 2,786.66 994.14
TOTAL (A) 3,055.13 1,538.19
Less : Current Liabilities & Provisions 9
Current Liabilities 236.67 156.83
Provisions 708.12 330.25
TOTAL (B) 944.79 487.08
Net Current Assets (A-B) 2,110.34 1,051.11
Miscellaneous Expenditure 10 4.59 -
(To the extent not written off or adjusted)
TOTAL 6,103.44 5,617.57
Significant Accounting Policies & Notes to Accounts 17
The Schedules referred herein above form an integral part of the Balance Sheet

As per our report of even date For & on behalf of the Board
For Lodha & Co.
Chartered Accountants

Saurabh Chhajer (Naveen Jindal) (Dr. R.P. Singh) (Sushil K. Maroo)

Partner Chairman Executive Vice Chairman Dy. Managing Director
Membership No. 403325

Place : New Delhi (Dhiraj Kumar Maggo)

Date : 3rd May, 2010 Dy. Company Secretary

62 Jindal Power Limited

 Corporate Social Financial
The Board Directors’ Report
Responsibility Statements

Profit & Loss Account for the year ended 31st March 2010

(Rs. in Crores)
Schedule For the Year ended For the Year ended
Particulars
No. 31.03.2010 31.03.2009
INCOME
Sales and Operational Income 11 3,921.90 3,258.48
Less : Electricity Duty - 1.00
3,921.90 3,257.48
Other Income 12 133.03 56.79
4,054.93 3,314.27
EXPENDITURE
Material, Manufacturing and Other Expenses 13 350.10 293.10
Personnel Expenses 14 42.17 26.46
Administration, Distribution and Other Expenses 15 144.75 173.89
Financial Charges 16 232.40 313.14
Miscellaneous Expenditure written off - 56.51
Depreciation 5 475.83 530.73
1,245.25 1,393.83
PROFIT BEFORE TAXATION 2,809.68 1,920.44
Less: Provison for Taxation
Income Tax 477.46 220.66
Deferred Tax Charge/(Credit) (Refer note no. 11 of schedule 17B) 13.21 117.27
Wealth Tax 0.25 0.08
Fringe Benefit Tax - 0.50
PROFIT AFTER TAXATION 2,318.76 1,581.93
Add: Surplus Brought Forward from Previous Year(s) 1,499.84 19.43
PROFIT AVAILABLE FOR APPROPRIATION 3,818.60 1,601.36
Capitalisation of Profit by Bonus Issue 449.60 -
Interim Dividend on Equity Shares 94.42 -
Corporate Tax on Interim Dividend 15.68 -
Proposed Dividend on Equity Shares - 86.77
Corporate Tax on Proposed Dividend - 14.75
Balance carried to Balance Sheet 3,258.90 1,499.84
Basic/Diluted Earning per Equity Share
(Refer note no. 28 of schedule 17B) 17.32 12.01
Significant Accounting Policies & Notes to Accounts 17
The Schedules referred to above form an integral part of Profit & loss Account

As per our report of even date For & on behalf of the Board
For Lodha & Co.
Chartered Accountants

Saurabh Chhajer (Naveen Jindal) (Dr. R.P. Singh) (Sushil K. Maroo)

Partner Chairman Executive Vice Chairman Dy. Managing Director
Membership No. 403325

Place : New Delhi (Dhiraj Kumar Maggo)

Date : 3rd May, 2010 Dy. Company Secretary

Annual Report 2009-10 63

 Corporate Strengths
About JPL Chairman’s Review Future Projects
and Strategies

Schedules
forming part of Balance Sheet as at 31st March 2010 and Profit & Loss Account for the year ended 31st March 2010

(Rs. in Crores)
As at As at
31.03.2010 31.03.2009
SCHEDULE -1
Share Capital
Authorised
3,000,000,000 Equity Shares (Previous Year 1,000,000,000 Equity Shares) 3,000.00 1,000.00
of Rs. 10 each
Unclassifed Share Capital - 500.00
TOTAL 3,000.00 1,500.00
Issued, Subscribed & Paid up
1,348,800,000 Equity Shares (Previous Year 867,700,000) of Rs. 10 each 1,348.80 867.70
fully paid
Note:
Of the above 1,300,575,000 Equity Shares (Previous Year 867,050,000) are
held by the Holding Company - Jindal Steel & Power Limited
Of the above 449,600,000 Equity Shares were alloted as fully paid bonus
shares by capitalisation of Profit
1,348.80 867.70
SCHEDULE - 2
Reserve & Surplus
Surplus in Profit & Loss Account 3,258.90 1,499.84
3,258.90 1,499.84
SCHEDULE - 3
Secured Loans
Term Loans:
From Financial Institution - 498.75
From Banks 1,065.26 2,634.01
TOTAL 1,065.26 3,132.76
SCHEDULE - 4
Unsecured Loans
Short Term Loan from Bank 300.00 -
TOTAL 300.00 -

Notes : Secured Loans

I. Term loans from banks and financial institution includes loans of Rs. 1,065.26 Crores (Previous Year
Rs. 2,824.36 Crores), which are secured/ to be secured by way of first pari passu mortgage /charge on all the fixed
assets (tangible and intangible), uncalled capital of the company, receivables accounts, book debts and all rights,
titles and interest in accounts of the company both present and future, and are further secured/ to be secured by
way of hypothecation of all promoter’s receivables realised by sale of energy purchased by the promoters from the
company and deposit in the escrow account/designated account both present and future.

II. Term loans from Banks includes loans of Rs. Nil (Previous Year Rs. 308.40 Crores), which are secured/ to be secured
by way of mortgage/charge on pari passu basis which is second, subsequent and subservient to mortgage/charge
as stated above in note ( I )

III. The above said loans are further secured/ to be secured by way of pledge of 51% of the equity share capital issued/
to be issued by the company which are held by the promoter on pari passu basis.

64 Jindal Power Limited

 SCHEDULE - 5
Fixed Assets
Schedules
Responsibility
Corporate Social

(Rs. in Crores)
Gross Block (At Cost) Depreciation Net Block
Particulars As at Additions Sales / As at upto For the Sales/ As at As at As at
01.04.2009 Adjustments 31.03.2010 31.03.2009 Year* Adjustments 31.03.2010 31.03.2010 31.03.2009
Tangible Assets
Freehold Land 12.64 1.57 - 14.21 - - - - 14.21 12.64
The Board

Leasehold Land 50.56 - - 50.56 2.43 0.84 - 3.27 47.29 48.13

Buildings 580.97 29.48 (8.67 ) 619.12 63.34 50.21 (0.40 ) 113.95 505.17 517.63
Plant & Machinery 3,470.71 9.94 22.05 3,458.60 549.76 465.70 4.20 1,011.26 2,447.34 2,920.95
Office Equipment 6.64 3.32 (0.14 ) 10.10 3.08 0.57 (0.01) 3.66 6.44 3.56
Furniture & Fixtures 6.54 2.75 0.06 9.23 2.69 1.42 0.02 4.09 5.14 3.85
Vehicles 6.58 5.15 0.60 11.13 1.64 1.81 0.27 3.18 7.95 4.94
Intangible Assets
Software 0.42 1.34 - 1.76 0.42 1.34 - 1.76 - -
TOTAL 4,135.06 53.55 13.90 4,174.71 623.36 521.89 4.08 1,141.17 3,033.54 3,511.70
Previous Year 1,949.24 2,186.05 0.23 4,135.06 32.68 590.78 0.10 623.36 3,511.70 1,916.56
Directors’ Report

*Depreciation for the Year 521.89

Depreciation of coal handling plant considered seperately 46.06
Balance as per Profit & Loss Account 475.83
Financial

Annual Report 2009-10

Statements

forming part of Balance Sheet as at 31st March 2010 and Profit & Loss Account for the year ended 31st March 2010 (Contd.)

65
 Corporate Strengths
About JPL Chairman’s Review Future Projects
and Strategies

Schedules
forming part of Balance Sheet as at 31st March 2010 and Profit & Loss Account for the year ended 31st March 2010 (Contd.)

(Rs. in Crores)
As at As at
31.03.2010 31.03.2009
SCHEDULE - 6
Capital Work in Progress
Includes Expenditure During Construction Period (Pending Allocation/
Capitalisation)
Cost of Fuel - 48.34
Salary, Wages, Bonus and Other benefits 3.28 1.22
Contribution to Provident & Other funds 0.13 0.05
Travelling and Conveyance 7.87 -
Legal, Professional & Consultancy Fees 7.76 -
Vehicle Running and Maintenance 0.49 -
Power & Fuel 0.01 -
Bank Charges 29.36 -
Interest on Term Loans - 28.29
Other Expenses 5.76 -
TOTAL (A) 54.66 77.90
Less:
Sale of Power - 118.98
Interest on Others [Including TDS Rs. Nil (Previous Year Rs. 0.47 Crores)] - 2.06
Other Income - 1.41
TOTAL (B) - 122.45
TOTAL (A) - (B) = (C) 54.66 (44.55)
Add: Expenditure incurred upto previous year - 262.10
54.66 217.55
Less: Allocated to Fixed Assets - 217.55
54.66 -
Add: Capital Work in Progress ( Including Capital Advances) Refer Note no 835.64 810.33
4 of Schedule 17 B
Balance Carried to the Balance Sheet 890.30 810.33

66 Jindal Power Limited

 Corporate Social Financial
The Board Directors’ Report
Responsibility Statements

Schedules
forming part of Balance Sheet as at 31st March 2010 and Profit & Loss Account for the year ended 31st March 2010 (Contd.)

(Rs. in Crores)
As at As at
31.03.2010 31.03.2009
SCHEDULE - 7
Investment (Unquoted) (Fully Paid Up)
Long Term Investment (At cost)
In Subsidiaries (Trade)
Jindal Power Distribution Limited [(49,400 (Previous Year 49,400) Equity 0.05 0.05
Shares of Rs. 10 each)]
Jindal Power Transmission Limited [(49,400 (Previous Year 49,400) Equity 0.05 0.05
Shares of Rs. 10 each)]
Jindal Hydro Power Limited [(49,400 (Previous Year 49,400) Equity Shares 0.05 0.05
of Rs. 10 each)]
Jindal Power Trading Company Limited (formerly known as Chattisgarh 6.05 -
Energy Trading Company Ltd.) [(6,030,000 (Previous Year Nil) Equity Shares
of Rs. 10 each)]
Attunli Hydro Electric Power Company Limited [(740,000 (Previous Year Nil) 0.74 -
Equity Shares of Rs. 10 each)]
Etalin Hydro Electric Power Company Limited [(740,000 (Previous Year Nil) 0.74 -
Equity Shares of Rs. 10 each)]
Subhansiri Hydro Electric Power Company Limited [(740,000 (Previous 0.74 -
Year Nil) Equity Shares of Rs. 10 each)]*
* Pending allotment
In Subsidiaries (Non-Trade)
Jindal Petroleum Limited [(Nil (Previous Year 60,950,000) Equity Shares of - 60.95
Rs. 10 each)]
Power Plant Engineers Limited [(Nil (Previous Year 49,600) Equity Shares of - 0.05
Rs. 10 each)]
Current Investment
In Equity shares (Non-Trade) (At cost)
Indian Energy Exchange Limited [(1,250,000 (Previous Year 1,250,000) 1.25 1.25
Equity Shares of Rs. 10 each)]
In Mutual Fund (At cost or market value which ever is lower)
8,895,161.625 units (Previous Year Nil Units) of LIC MF Liquid Fund - 15.00 -
Growth
323,448.008 Units (Previous Year Nil Units) of UTI Treasury Advantage 40.00 -
Fund - Institutional Plan - Growth
Nil Units (Previous Year 35,651,010.501 Units) of Birla Sunlife Dividend - 50.01
option
Nil Units (Previous Year 22,759,675.445 Units) of HDFC Liquid Mutual Fund - 40.02
Nil Units (Previous Year 13,124,068.770 Units) of Prudendial ICICI - 37.00
Institutional liquid Dividend
Nil Units (Previous Year 15,160,473.613 Units) of Reliance Liquidity Fund - 20.00
Nil Units (Previous Year 2,548,640.810 Units) of SBI Magnum Insta Cash - 5.00
Fund
Nil Units (Previous Year 184,909.157 Units) of Tata Mutual Fund - 30.00
TOTAL 64.67 244.43

Annual Report 2009-10 67

 Corporate Strengths
About JPL Chairman’s Review Future Projects
and Strategies

Schedules
forming part of Balance Sheet as at 31st March 2010 and Profit & Loss Account for the year ended 31st March 2010 (Contd.)

(Rs. in Crores)
As at As at
31.03.2010 31.03.2009
SCHEDULE - 8
Current Assets, Loans & Advances
Inventories
(As taken, valued and certified by the management)
i ) Coal & Fuel (At lower of cost and net realisable value) 10.77 11.76
ii) Stores and Spares 62.77 15.51
TOTAL 73.54 27.27
Sundry Debtors
(Unsecured, Considered good unless otherwise stated)
Exceeding six months - 0.30
Others [(including due from Holding Company Rs. 48.59 Crores (Previous 178.91 182.35
Year Rs. 32.41 Crores)]
TOTAL 178.91 182.65
Cash & Bank Balances
Cash in Hand 0.11 0.16
Cheques in Hand 5.82 66.42
Balances with Scheduled Banks
(i) In current account 10.08 15.54
(ii) In Fixed Deposit account 0.01 252.01
TOTAL 16.02 334.13
Loans & Advances
(Unsecured, Considered Good unless otherwise stated)
- Advance recoverable in cash or in kind or for value to be received 1,691.28 770.42
(Includes amount due From Subsidiaries Rs. 0.30 Crores (Previous Year
Rs. 0.02 Crores)
- Advance against Share Application money, pending Allotment 378.50 0.50
- Security Deposits 0.09 1.34
- Balances with Government Authorities and Others 4.90 1.50
- Advance Income Tax, Tax deducted at Source & Tax collected at source 681.70 211.24
- Advance Fringe Benefit Tax 0.82 0.68
- Interest accrued on Fixed Deposits - 1.93
- Interest accrued on others 29.37 6.53
2,786.66 994.14

68 Jindal Power Limited

 Corporate Social Financial
The Board Directors’ Report
Responsibility Statements

Schedules
forming part of Balance Sheet as at 31st March 2010 and Profit & Loss Account for the year ended 31st March 2010 (Contd.)

(Rs. in Crores)
As at As at
31.03.2010 31.03.2009
SCHEDULE - 9
Current Liabilities
Sundry Creditors
- Due to Micro & Small Enterprises* 0.16 -
- Due to Others 75.28 131.75
Duties & Taxes 4.11 2.65
Interim Dividend on Equity Shares Payable 94.42 -
Corporate Tax on Interim Dividend Payable 15.68 -
Other Liablilties 47.02 22.43
TOTAL 236.67 156.83
(* To the extent information available and identified by the management)
(Refer Note no. 13 of Schedule 17B)
Provision
- For Proposed Dividend - 86.77
- For Corporate Tax on Dividend - 14.75
- For Gratuity and Leave Encashment 4.97 3.05
- For Income Tax 702.34 224.87
- For Fringe Benefit Tax 0.81 0.81
TOTAL 708.12 330.25
SCHEDULE - 10
Miscellaneous Expenditure
(To the extent not written off or adjusted)
(a) Share Issue Expenses 4.59 -
Less: Written off during the period - -
TOTAL (A) 4.59 -
(b) Mines Development Expenses
Opening Balances - 56.51
Add: Increased during the year - -
- 56.51
Less: Written off during the period - 56.51
TOTAL (B) - -
TOTAL (A +B) 4.59 -

Annual Report 2009-10 69

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About JPL Chairman’s Review Future Projects
and Strategies

Schedules
forming part of Balance Sheet as at 31st March 2010 and Profit & Loss Account for the year ended 31st March 2010 (Contd.)

(Rs. in Crores)
For the Year For the Year ended
ended 31.03.2010 31.03.2009
SCHEDULE - 11
Sales And Operational Income
Sale of Power 3,921.90 3,258.48
Less: Electricity Duty - 1.00
Net Sales 3,921.90 3,257.48
SCHEDULE - 12
Other Income
Liabilities no longer required written back 0.08 0.01
Profit on Sale of Fixed Assets 3.93 -
Profit on Sale of Current Investments (Net) 10.03 1.49
Dividend - 0.07
Interest on Others [(Including TDS Rs. 11.94 Crores (Previous Year Rs. 7.90 101.64 34.86
Crores)]
Interest on Fixed Deposits [(Including TDS Rs. 0.52 Crores (Previous Year 2.57 8.70
Rs. 1.92 Crores))
Income from Technical Services (Including TDS Rs. 1.17 Crores (Previous 11.71 11.03
Year Rs. 1.25 Crores)]
Miscellaneous Receipts 3.07 0.63
TOTAL 133.03 56.79
SCHEDULE - 13
Material, Manufacturing And Others Expenses
Cost of Fuel 288.22 250.03
Stores and Spares consumed 3.98 4.95
Repairs to Buildings 6.14 12.91
Repairs to Plant and Machinery 46.39 16.61
Other Expenses 5.37 8.60
TOTAL 350.10 293.10
SCHEDULE - 14
Personnel Expenses
Salary, Wages, Bonus and Other Benefits 37.55 23.19
Contribution to Provident and Other Funds 1.67 0.89
Workman & Staff Welfare Expenses 2.95 2.38
TOTAL 42.17 26.46

70 Jindal Power Limited

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The Board Directors’ Report
Responsibility Statements

Schedules
forming part of Balance Sheet as at 31st March 2010 and Profit & Loss Account for the year ended 31st March 2010 (Contd.)

(Rs. in Crores)
For the Year ended For the Year ended
31.03.2010 31.03.2009
SCHEDULE - 15
Administration, Distribution And Other Expenses
Travelling and Conveyance 3.61 1.57
Legal, Professional & Consultancy Fees 6.49 4.66
Repair and Maintenance - Others 3.96 11.99
Vehicles Running and Maintenance 2.61 1.69
Rates & Taxes 0.31 0.52
Insurance 6.24 1.69
Rent 0.17 0.93
Green Belt Development Expenses 5.69 7.39
Office Maintenance 3.30 3.94
Security Expenses 4.51 3.91
Loss on sale of Fixed Assets 0.01 0.05
Selling & Distribution Expenses 89.00 122.97
Other Expenses 18.85 12.58
TOTAL 144.75 173.89
SCHEDULE - 16
FINANCIAL CHARGES
Interest on
Term Loans 227.96 311.38
Others 1.24 0.01
Bank Charges 3.20 1.75
TOTAL 232.40 313.14

Annual Report 2009-10 71

 Corporate Strengths
About JPL Chairman’s Review Future Projects
and Strategies

Schedules
forming part of Balance Sheet as at 31st March 2010 and Profit & Loss Account for the year ended 31st March 2010 (Contd.)

SCHEDULE - 17
Significant Accounting Policies & Notes To Accounts
A. Significant Accounting Policies
1. Basis of Accounting
The accounts of the Company are prepared under the historical cost convention and in accordance with
applicable Accounting Standards except where otherwise stated. For recognition of income and expenditure,
mercantile system of accounting is followed.
2. Revenue Recognition Policy
Revenue from sale or sale of power is accounted for on the basis of billing to consumers. Generally, all
consumers are billed on the basis of recording of consumption of energy by installed meters/Contracted
quantum & terms with Customers.

Income from Technical Services is recognised on accrual basis as per agreement.

3. Fixed Assets
Fixed assets are stated at cost less accumulated depreciation. The cost of an asset comprises its purchase price
and any attributable cost of bringing the asset to working condition for its intended use i.e. cost of acquisition
of assets and incidental expenditure incurred up to the date of installation/ use.

Certain Plant & Machineries have been considered as continuous plant on the basis of the technical assessment
of the management.
4. Expenditure During Construction Period
Expenditure incurred during construction/ erection period are carried forward and allocated appropriately at
the time of completion/installation of fixed assets.
5. Depreciation/Amortisation & Impairment of Assets
Depreciation/Amortisation

Depreciation on fixed assets is provided on Written Down Value method at the rates specified in Schedule XIV
to the Companies Act, 1956.

Assets costing upto Rs. 5,000/- are depreciated fully in the year of purchase/ capitalisation.

Leasehold Land is amortised over the period of lease.

Intangible assets are being amortised over the expected duration of benefits.

Impairment

The carrying amount of the assets is reviewed at each Balance Sheet date. An impairment loss is recognised
wherever the carrying amount of an asset exceeds its recoverable amount.
6. Investment
Long term investments are carried at cost, less provision for diminution other than temporary, if any, in the
value of such investments. Current investments are carried at lower of cost or fair value.
7. Inventories
Inventories are valued at lower of cost or net realisable value except waste/ scrap which is valued at net
realisable value. The cost is computed on weighted average basis.
8. Foreign Exchange Transactions
Transactions in foreign currency are recorded at the rates prevailing on the date of transaction. Outstanding
foreign currency monetary assets and liabilities are translated at the exchange rate prevailing at year-end.
Exchange difference is charged to the Profit & Loss account. Premium/ discount in respect of forward contract
is recognised over the life of contract.

72 Jindal Power Limited

 Corporate Social Financial
The Board Directors’ Report
Responsibility Statements

Schedules
forming part of Balance Sheet as at 31st March 2010 and Profit & Loss Account for the year ended 31st March 2010 (Contd.)

9. Employees Benefits
a) Contribution to Gratuity is made with Life Insurance Corporation of India and provision for Gratuity &
Leave Encashment benefits are accounted on the basis of actuarial valuation.

b) Short term employee benefits are recognised as an expense at the undiscounted amount in the profit and
loss account of the period in which the related service is rendered.

c) Defined benefit Plan: The Provident Fund Contribution, in excess of minimum statutory contribution
and excluding some employees, is made to Trust administered by the trustees. The interest rate to the
members of the trust shall not be lower than the statutory rate declared by the Central Government
under Employees’ Provident Fund and Miscellaneous Provision Act, 1952. Any shortfall, if any, shall be
made good by the Company.

d) Other than as referred to in para (C) above, the provident fund are defined contribution plan and the
contribution to the same are expenses recognised in the Profit and Loss Account during the period in
which services have been rendered and are measured at cost.

Post employment and other long term employee benefits are recognised as an expense in the profit and
loss account for the year in which the employee has rendered services. The expense is recognised at the
present value of the amounts payable determined using actuarial valuation techniques. Actuarial gains
and losses in respect of post employment and other long term benefits are charged to the profit and loss
account.
10. Miscellaneous Expenditure
The following expenditure shown under miscellaneous expenditure is amortised as follows:

a) Preliminary expenses are written off in the year of start of production.

b) Mines Development Expenditure (Comprises of Initial expenditure for coalmines and expenditure for
removal of overburden) is charged to the profit & loss in the year in which the same is incurred

c) Share Issue Expenses are adjusted against the securities premium Account as permitted by section 78(2)
of the Companies Act, 1956
11. Taxes on Income
Current tax is the amount of tax payable on the taxable income for the current Period as per the provisions of
Income tax Act, 1961. Credit in respect of Minimum Alternate Tax paid is recognised only if there is convincing
evidence of realisation of the same.

Deferred tax is recognised at rates in force/substantively enacted subject to the consideration of prudence,
on timing difference, being the difference between taxable income and accounting income that originate in
one period and are capable of reversal in one or more subsequent periods. Deferred tax assets on unabsorbed
depreciation and carried forward losses are recognised only if there is virtual certainty that they will be
reversed in subsequent years. Deferred tax assets on other reversible differences are recognised only if there is
reasonable certainty that they will be realised.
12. Borrowing Costs
Interest and other costs in connection with the borrowing of the funds to the extent related/attributed to the
acquisition/ construction of qualifying fixed assets are capitalised up to the date when such assets are ready
for its intended use and on account of others are charged to the Profit & Loss account.
13. Contingent Liabilities
Contingent liabilities are not provided for in the books of accounts and are disclosed by way of notes.

Annual Report 2009-10 73

 Corporate Strengths
About JPL Chairman’s Review Future Projects
and Strategies

Schedules
forming part of Balance Sheet as at 31st March 2010 and Profit & Loss Account for the year ended 31st March 2010 (Contd.)

B. Notes to Accounts

1. Pursuant to the process of Initial Public offering, the company has filled the Draft Red Herring Prospectus with
Securities and Exchange Board of India, National Stock Exchange of India Limited and Bombay Stock Exchange
Limited for approval.

2. Operational result of the company for the current year are strictly not comparable with the figures of
corresponding previous year since plant is operating at full capacity of 1,000 MW since 5th September 2008.

3. During the previous year company has initiated implementation of 2,400 MW Thermal Power Plant at Raigarh
in the State of Chattisgarh and during the year also initiated 1,320 MW Thermal power project located at
Dumka and 660 MW Thermal power project located at Godda in Jharkhand.

4. Capital work in progress includes, fencing of site area, roads, construction/capital material at site, temporary
construction, site development expenses, plant & machinery in transit /under erection/under trial run and
capital advance against project. As part of the project is under implementation, the expenses incurred in
relation thereof have been shown under schedule 6 (Capital work in progress) as part of “Expenditure during
Construction Period” (Pending Allocation/Capitalisation).

5. The Company had sold its stake in its two subsidiary companies namely Jindal Petroleum Limited & Power Plant
Engineers Limited at Price of Rs. 10 per equity shares. Further Company has received Rs. 36.00 Crores against
the advance given for application money and this amount stand reduced to Rs. 39.50 Crores.

6. Sales include Rs. 49.13 Crores pertaining to supply of power for the year ended March 31, 2009, as per the
terms of settlement agreed in current period.

7. Contingent Liabilities not provided for in respect of (as certified by the management):

(Rs. in Crores)
Particulars As at 31.03.10 As at 31.03.09
I) Exemption from Electricity Duty Pending for final Approval 6.38 2.68
Development and Environment cess 2.12 1.06
II) Bank Guarantee 124.00 -
Letter of credit 5.00 -

8. (a) Estimated amount of contracts remaining to be executed on Capital Account and not provided for
Rs. 5617.09 Crores (net of capital advance of Rs. 639.59 Crores) [Previous Year Rs. 4957.26 Crores (net of
capital advance of Rs. 735.72 Crores)].

(b) Company has, for a project in Nepal, agreed to subscribe 48% equity capital in joint venture Company
namely Synergy Infrastructure Pvt. Ltd. amounting to Rs. 1.78 Crores (Nepali Rupees 2.88 Crores).

9. (a) Amount of Rs. 240.00 Crores and Rs. 12.50 Crores given to Arunachal Government on behalf M/s Etalin
Hydro Electric Power Company Limited & M/s Attunli Hydro Electric Power Company Limited respectively
during last year has been treated as advance against share application as agreed with the said JV
companies.

(b) During the year the company has given Rs. 80.00 Crores to Arunachal Government on behalf of Subansiri
Hydro Electric Power Company Limited and the same has been treated as advance against share application
money as agreed with the said JV company.

74 Jindal Power Limited

 Corporate Social Financial
The Board Directors’ Report
Responsibility Statements

Schedules
forming part of Balance Sheet as at 31st March 2010 and Profit & Loss Account for the year ended 31st March 2010 (Contd.)

10. Employees Benefits

(Rs. in Crores)
Gratuity (Funded) Leave Encashment
(Unfunded)
I Expenses recognised during the Period 31.03.10 31.03.09 31.03.10 31.03.09
1.Current Service Cost 0.63 0.13 0.98 0.13
(Including Risk Premium for fully insured benefits)
2.Interest Cost 0.10 0.02 0.19 0.02
3.Expected Return on planned assets (0.11) (0.03) 0.00 0.00
4.Past Service Cost 0.21 0.00 0.00 0.07
5.Actuarial (gain)/loss 0.19 0.93 1.36 2.01
6.Total Expense 1.02 1.05 2.53 2.23
II Net Asset/(Liability) recognised in the balance sheet
as at year end
1.Present value of defined benefit obligation 2.66 1.27 4.66 2.34
2.Fair Value of Plan asset. 1.93 0.56 0.00 0.00
3.Funded status [Surplus/(Deficit)] (0.73) (0.71) (4.66) (2.34)
4.Unrecognised past service cost 0.42 0.00 0.00 0.00
5. Net Asset / (Liability). (0.31) (0.71) (4.66) (2.34)
III Change in Obligation For the Period ended
1.Present Value of Defined Benefit Obligation at the 1.27 0.28 2.34 0.33
beginning of the Year
2.Current Service Cost 0.63 0.13 0.98 0.13
3.Interest Cost 0.10 0.02 0.19 0.02
4.Plan Amendments ( Past service cost) 0.63 0.00 0.00 0.07
5.Acturial (Gain) /Losses 0.08 0.94 1.36 2.01
6.Benefit Payments (0.05) (0.10) (0.21) (0.22)
7.Present Value of defined Benefit Obligation at the 2.66 1.27 4.66 2.34
end of Year
IV Change in Assets During the Period
1.Fair Value of Plan assets at beginning of the Year 0.56 0.25 0.00 0.00
2.Expected Return of Plan assets 0.11 0.03 0.00 0.00
3.Actual Company Contribution 1.42 0.37 0.21 0.22
4.Actual Benefit Paid (0.05) (0.10) (0.21) (0.22)
5.Acturial Gain /(Losses) (0.11) 0.01 0.00 0.00
6.Fair Value of Plan assets at the end 1.93 0.56 0.00 0.00
V Investment Detail
All the investments are made with Life Insurance 100% 100%
Corporation of India Limited
VI Actuarial Assumption
1.Discount Rate 8.50% 8.30% 8.50% 8.30%
2.Expected Rate of Return on plan assets 9.15% 9.15% N.A. N.A.
3.Salary escalation 12.00% 12.00% 12.00% 12.00%
4.Mortality LIC (1994-96) ultimate
5.Turnover rate Age Up to 25-0.5%, up to 30- 0.3%, up to
35- 0.2%, up to 50-0.1% up to 55- 0.2%, up to
58-0.3%

Annual Report 2009-10 75

 Corporate Strengths
About JPL Chairman’s Review Future Projects
and Strategies

Schedules
forming part of Balance Sheet as at 31st March 2010 and Profit & Loss Account for the year ended 31st March 2010 (Contd.)

a) Defined Benefit Plan

The employee’s gratuity fund managed by life Insurance Corporation of India is a defined benefit plan.
The present value of obligation is determined based on actuarial valuation using the Projected Unit Credit
Method, which recognises each period of service as giving rise to addition unit of employee benefit
entitlement and measures each unit separately to build up the final obligation. The obligation for leave
encashment is recognised in the same manner as gratuity.

b) Amount recognised as an expense

Gratuity- Rs. 1.02 Crores (Previous Year Rs. 1.05 Crores), Leave Encashment–Rs. 2.53 Crores (Previous Year
Rs. 2.23 Crores), PF Funded Rs.0.74 Crores (Previous Year Rs. 0.42 Crores)

Pending the issuances of the Guidance note from the Acturial Society of India, the company’s actuary has
expressed his inability to reliably measure the provident fund liability.

c) Defined Contribution plans

The company has recognised an expense of Rs. 0.93 Crores (Previous Year Rs. 0.56 Crores) towards defined
contribution plan.

d) The expected return on plan assets is determined considering several applicable factors mainly composition
of the plan asset held, assessed risks of asset management, historical results of return on plan assets.

e) The estimate of future salary increase considered in actuarial valuation, take account of inflation, seniority,
promotion and other relevant factors, such as supply and demand in the employment market. The above
information is certified by the actuary.
11. Deferred Tax Assets / Liabilities
The Company operates in power sector which is eligible for 100% deduction under Section 80 IA of the Income
Tax Act 1961 of the profits and gains derived from the business for ten consecutive years in the fifteen years
block. In accordance with Accounting Standard Interpretation (ASI)-3 Issued by the Institute of Chartered
Accountant of India, the deferred tax in respect of timing difference which is reversible during the tax holiday
period have not been recognised based on the management assessment on future taxable income. Deferred
tax liability recognised for the year is Rs. 13.21 Crores (Previous Year Rs. 117.27 Crores) on timing difference
arising on depreciation.

12. Provision for Taxation represents Minimum Alternate Tax computed u/s 115JB of the Income Tax Act, 1961.
Tax calculation has been made considering certain allowances/adjustments available, as assessed by the
management.
13. As required by section 22 of The Micro, Small and Medium Enterprises Development Act, 2006 the
following information is disclosed:
(Rs. in Crores)
S.No Particular 31.03.10 31.03.09
a) i) Principal amount remaining unpaid at the end of the accounting year 0.16 -
ii) Interest due on above - -
b) The amount of interest paid by the buyer along with amount of - -
payment made to the suppliers beyond the appointed date
c) The amount of interest accrued and remaining unpaid at the end of - -
financial year
d) The amount of interest due and payable for the period of delay in - -
making payment (which have been paid but beyond the due date during
the year) but without adding interest specified under this Act
e) The amount of further interest due and payable in succeeding year, until - -
such interest is actually paid.

76 Jindal Power Limited

 Corporate Social Financial
The Board Directors’ Report
Responsibility Statements

Schedules
forming part of Balance Sheet as at 31st March 2010 and Profit & Loss Account for the year ended 31st March 2010 (Contd.)

14. Software (other than specified software) under Intangible Assets is depreciated fully in the year of purchase.

15. (a) Loans and advances includes Rs. 1,198.56 Crores (Previous Year Rs. 39.63 Crores) Inter Corporate Deposits
given to Jindal Steel & Power Limited (The Holding Company), maximum balance outstanding during the
year Rs. 1,229.77 Crores (Previous Year Rs. 407.89 Crores).

(b) Loans and advances include Rs. 0.30 Crores (Previous Year Rs. Nil) to Subansiri Hydro Electric Power
Company Limited (subsidiary company) maximum balance outstanding during the year Rs. 0.30 Crores
(Previous Year Rs. Nil).

(c) Loans and advances includes dues from directors Rs. 0.22 Crores (Previous Year Rs. 0.39 Crores) and
maximum balance outstanding during the year Rs. 0.39 Crores (Previous Year Rs. 0.50 Crores).

16. (a) Balances with Scheduled Banks in fixed deposit account include fixed deposit of Rs. 50,000 (Previous Year
Rs. 50,000) pledged with Government Authorities.

(b) Maximum outstanding balance of commercial paper during the year is Rs. 120.00 Crores.
17. Expenses debited to the other heads of accounts:
(Rs. in Crores)
For the Year ended For the Year ended
Particulars
31.03.10 31.03.09
Job Work Charges 55.49 52.38
Stores & Spares Consumed 15.90 10.36
Coal Handling Expenses 2.17 2.68
Power & Fuel Expenses 35.65 26.89
Operation & Maintenance – Coal Mines 14.52 18.45
Salary, wages, bonus and other benefits 3.39 2.22
Contribution to Provident Fund 0.16 0.10
Other Expenses 4.46 4.44
Depreciation 46.06 60.05
Freight & Transportation 1.15 4.22
Royalty 41.46 35.93
Rates & Taxes 3.22 4.61
Excise Duty on Coal 5.25 4.61
Repair & Maintenance – Others 41.60 -

18. In the opinion of the Board, Current Assets, loan & Advances have a value on realisation/ recoverable in the
ordinary course of business at least equal to the amount at which they are stated and provisions for all known
liabilities have been made.

19. During the year the company has issued & allotted 31,500,000 fully paid up equity shares at Rs. 10 each, to a
body corporate being constituent of promoter group in pursuance of Section 81 (1A) of The Companies Act.
1956.

20. The Company has only one business segment i.e. Power Generation, Sale and related Technical services. The
company has one geographical reportable segment i.e. operations within India, hence segment reporting as
defined in Accounting Standard (AS-17) is not given.

Annual Report 2009-10 77

 Corporate Strengths
About JPL Chairman’s Review Future Projects
and Strategies

Schedules
forming part of Balance Sheet as at 31st March 2010 and Profit & Loss Account for the year ended 31st March 2010 (Contd.)

21. During the Year the company has purchased and sold the following investments:

Purchases Sales
Description Units Value (Rs. in Crores) Units Value (Rs. in Crores)
LIC Liquid Fund - Growth 598,281,271.69 991.06 598,281,271.69 992.29
LIC Income Plus Fund - Growth 372,424,950.28 455.33 372,424,950.28 456.09
Reliance Liquidity Fund – Growth 234,573,541.39 317.00 234,573,541.39 317.75
Reliance Money Manager Fund –
924,259.62 114.14 924,259.62 114.51
Growth
ICICI Prudential Liquid Super
167,805,149.90 307.00 167,805,149.91 307.85
Instt. Plan – Growth
ICICI Prudential Flexi Income Plan
21,555,133.03 142.08 21,555,133.03 142.15
Premium - Growth
Birla Sunlife Cash Plus Instt.
265,297,464.94 383.04 265,297,464.94 384.02
Premium Fund - Growth
Birla Sunlife Saving Fund Instt.
110,923,003.77 190.26 110,923,003.77 190.78
Fund – Growth
HDFC Liquid Fund Premium Plan
244,976,410.25 441.00 244,976,410.25 441.94
– Growth
HDFC Cash Management Fund
88,354,849.89 175.23 88,354,849.89 175.65
Treasury Adv.Plan - Growth
Tata Liquid Super High
909,909.17 150.00 909,909.17 150.64
Investment Fund – Appreciation
Tata Mutual Fund - Liquid Plus
14,908,105.41 20.06 14,908,105.41 20.08
Fund
Axis Liquid Fund - Growth 49,652.59 5.00 49,652.59 5.00
Axis Treasury Advantage Fund –
11,156,043.26 20.02 11,156,043.26 20.05
Growth
Kotak Liquid Instt. Premium –
49,279,461.31 91.00 49,279,461.31 91.02
Growth
Kotak Flexi Debt Scheme - Instt.
54,467,614.59 61.01 54,467,614.59 61.27
– Growth
SBI Liquid Fund - Growth 123,288,923.53 244.00 123,288,923.53 244.54
UTI Liquid Cash Plan Institutional
2,221,179.78 329.00 2,221,179.78 329.48
Fund – Growth
UTI Treasury Advantage Fund
1,352,228.52 165.06 1,352,228.52 165.44
Instt. Plan - Growth
JM High Liquidity Fund - Growth 86,459,262.39 124.02 86,459,262.39 124.04
JM Money Manager Fund -
65,043,161.65 84.01 65,043,161.66 84.11
Growth
Canara Robeco Liquid Fund Instt.
10,790,202.50 12.00 10,790,202.50 12.00
Plan – Growth
Canara Robeco treasury Adv.
8,690,403.79 12.00 8,690,403.79 12.02
Super Instt. Plan - Growth

78 Jindal Power Limited

 Corporate Social Financial
The Board Directors’ Report
Responsibility Statements

Schedules
forming part of Balance Sheet as at 31st March 2010 and Profit & Loss Account for the year ended 31st March 2010 (Contd.)

22. Related Party Disclosure as required by Accounting Standard - 18 prescribed under Companies (Accounting
Standards) Rules, 2006 (As identified & certified by Management)

A. List of Related Parties & Relationships:

a) Holding Company

Jindal Steel & Power Limited (JSPL)

b) Associates

Nalwa Steel & Power Limited (ceased to be Associate w.e.f. 01.04.09)

c) Key Management Personnel

Dr. Rajendra Prasad Singh Executive Vice Chairman

Sh. Sushil Kumar Maroo Deputy Managing Director

Sh. K.K. Sinha Whole Time Director

Sh. Pradip Kumar Chakraborty Whole Time Director

d) Subsidiary Companies

1. Jindal Power Transmission Limited (w.e.f. 23.06.2008)

2. Jindal Hydro Power Limited (w.e.f. 18.08.2008)

3. Jindal Power Distribution Limited (w.e.f. 27.08.2008)

4. Jindal Petroleum Limited #

5. Power Plant Engineers Limited #

6. Jindal Power Trading Company Limited (formerly known as Chattisgarh Energy Trading
Company Limited) (w.e.f. 02.05.2009)

7. @Attunli Hydro Electric Power Company Limited (w.e.f. 19.05.2009)

8. @Etalin Hydro Electric Power Company Limited (w.e.f. 16.05.2009)

9. @Subansiri Hydro Electric Power Company Limited (w.e.f. 12.03.2010)

@Joint Venture (Note No.9)

Subsidiaries of Subsidiary

a. Jindal Petroleum (Mauritius) Limited (Subsidiary of Jindal Petroleum Limited)#

b. Jindal Petroleum (Georgia) Limited (Subsidiary of Jindal Petroleum (Mauritius Limited ) #

# ceased to be subsidiary w.e.f 30.06.2009

Annual Report 2009-10 79

 Corporate Strengths
About JPL Chairman’s Review Future Projects
and Strategies

Schedules
forming part of Balance Sheet as at 31st March 2010 and Profit & Loss Account for the year ended 31st March 2010 (Contd.)
B) Transactions with Related Parties
(Rs. in Crores)
Sl Nature of Holding Company Key Management Associates Subsidiaries
No. Transactions Personnel
Particulars Current Previous Current Previous Current Previous Current Previous
Year Year Year Year Year Year Year Year
1. Sale of Power 197.85 59.67 Nil Nil Nil Nil Nil Nil
2. Sale- Scrap 0.01 0.02 Nil Nil Nil 0.25 Nil Nil
3. Rendering of 12.91 11.03 Nil Nil Nil Nil Nil Nil
Technical Services
4. Purchases-Capital 11.13 6.47 Nil Nil Nil 5.64 Nil Nil
Goods & other
goods
5. Sales- Capital 13.29 Nil Nil Nil Nil Nil Nil Nil
Goods & other
goods
6 Service charges 8.07 Nil Nil Nil Nil Nil 0.06 0.06
paid
7 Loans & advances Nil 402.52 0.10 0.50 Nil Nil Nil Nil
Given for Capital
Purchases/Services
& others
8. Advance against 6.03 Nil Nil Nil Nil Nil 416.22* 61.65*
share application
money/ Shares
Purchased
9 Reimbursement 5.50 1.28 Nil Nil Nil Nil Nil 0.06
of expenses
incurred on our
behalf
10. Recovery of 0.54 0.39 Nil Nil Nil Nil 2.25 0.04
expenses incurred
11. Inter Corporate 1,746.02 1,715.58 Nil Nil Nil Nil Nil Nil
deposit given
12 Inter Corporate 587.09 1,675.95 Nil Nil Nil Nil Nil Nil
deposit refunded
13. Interest Income 61.37 28.48 Nil Nil Nil Nil Nil Nil
14. Remuneration Nil Nil See Note See Note Nil Nil Nil Nil
No. No.
24(a) 24(a)
15 Payment made 15.95 6.58 Nil Nil Nil 6.16 Nil Nil
for capital
purchase/ services
Outstanding Balance As on 31.03.10
16.. Creditors 0.36 1.97 Nil Nil Nil Nil Nil Nil
17. Debtors 48.59 32.41 Nil Nil Nil 0.04 Nil Nil
18. Loan & advances Nil 402.52 0.22 0.39 Nil Nil 0.30 0.02
Receivable
19. Inter Corporate 1,198.56 39.63 Nil Nil Nil Nil Nil Nil
Deposit
19. Advance against Nil Nil Nil Nil Nil Nil 339.00* 0.50*
Share Application
Money
*Details of Advance against share application money

80 Jindal Power Limited

 Corporate Social Financial
The Board Directors’ Report
Responsibility Statements

Schedules
forming part of Balance Sheet as at 31st March 2010 and Profit & Loss Account for the year ended 31st March 2010 (Contd.)

(Rs. in Crores)
Sl No. Name of Subsidiaries Current Year Previous Year
A Transactions
Jindal Power Distribution Limited - 0.05
Jindal Power Transmission Limited - 0.05
Jindal Hydro Power Limited - 0.05
Jindal Petroleum Limited 75.00 61.45
Attunli Hydro Electric Power Company Limited 14.74 -
Etalin Hydro Electric Power Company Limited 245.74 -
Power Plant Engineers Limited - 0.05
Subansiri Hydro Electric Power Company Limited 80.74 -
B Outstanding Balance As on 31.03.10
Jindal Petrolium Limited - 0.50
Attunli Hydro Electric Power Company Limited 14.00
Etalin Hydro Electric Power Company Limited 245.00
Subansiri Hydro Electric Power Company Limited 80.00

23. Auditors’ Remuneration (including Service Tax / Cess):

(Rs. in Crores)
Particulars For the Year ended For the Year ended
31.03.10 31.03.09
Audit Fees 0.08 0.08
Tax Audit Fees 0.01 0.01
Certification & Other services 0.45 0.01
TOTAL 0.54 0.10

24. a) Managerial Remuneration includes the following, paid to Whole time and Managing Director:

(Rs. in Crores)
Particulars For the Year ended For the Year ended
31.03.10 31.03.09
Salary, Incentives & Allowances 5.25 2.82
Contribution to Provident Fund 0.16 0.08
Gratuity 0.22 0.03
Other Perquisites* 0.65 0.02
Reimbursement of Expenses 0.15 0.03
TOTAL 6.43 2.98

* Include ESOP of the Holding Company, Valuation as per Income Tax Rules.

Annual Report 2009-10 81

 Corporate Strengths
About JPL Chairman’s Review Future Projects
and Strategies

Schedules
forming part of Balance Sheet as at 31st March 2010 and Profit & Loss Account for the year ended 31st March 2010 (Contd.)
b) Computation of net profit in accordance with Section 349 of the Companies Act, 1956 for the
purpose of Managerial Remuneration:

(Rs. in Crores)
Particulars For the Year ended For the Year ended
31.03.10 31.03.09
Profit before Taxation and Adjustments 2,809.68 1,920.44
Add:
Managerial Remuneration 5.93 2.98
Misc. Expenses Written Off - 56.51
Loss on Sale of Fixed Assets 0.01 0.05
Less:
Profit on Sale of Current Investments 10.03 1.49
Profit on Sale of Fixed Assets 3.93 -
Net Profit for the Year 2,801.66 1,978.49
1% of the Net Profit 28.02 19.78
10% of the Net Profit 280.17 197.85

25. Expenditure In Foreign Currency:

(Rs. in Crores)
Particulars For the Year ended For the Year ended
31.03.10 31.03.09
Travelling Expenses 0.42 0.11
Purchase of Stores & Spares 0.31 -
Professional Services 1.35 -
Membership & Subscription 0.07 -
TOTAL 2.15 0.11

26. Quantitative Information:

Generation and Supply of Electricity [(as certified by the management)]:

(In Million units KWH)

Particulars For the Year ended For the Year
31.03.10 ended 31.03.09
Generation of Energy [(Including generation during trial run-Nil 8,148.07 6,368.41
(Previous Year 215.920 MU)]
Internal/Captive consumption [(Net of Consumption during trial 833.59 642.76
run-Nil (Previous Year 36.31)]
Sale of Energy [(Including sale during trial run-Nil (Previous Year 7,314.48 5,725.65
101.80 MU) amounting to Rs. Nil [(Previous Year Rs. 118.98 Crores)].

82 Jindal Power Limited

 Corporate Social Financial
The Board Directors’ Report
Responsibility Statements

Schedules
forming part of Balance Sheet as at 31st March 2010 and Profit & Loss Account for the year ended 31st March 2010 (Contd.)
27. Consumption of Stores & Spares:

Value of Components, Stores and parts consumed (including stores consumption included in Repair and
maintenance – Plant & Machinery)

(Rs. in Crores)
For the Year ended 31.03.10 For the Year ended 31.03.09
Particulars Amount % Amount %
Indigenous 28.74 98.66 21.21 100
Imported 0.39 1.34 - -

28. Earning per share (EPS):

(Rs. in Crores)
For the Year ended For the Year ended
Particulars
31.03.10 31.03.09
Profit attributable to equity share holders 2,318.76 1,581.93
Weighted number of equity shares 1,338,443,836 1,317,300,000*
Basic/ Diluted EPS (Rs.) 17.32 12.01*
*Restated due to Bonus Shares

29. C.I.F Value of Imports:

(Rs. in Crores)
Particulars For the Year ended For the Year ended
31.03.10 31-03-09
Capital goods - 0.59
Other Goods 0.31 -
TOTAL 0.31 0.59

30. Previous year/ period figures have been regrouped/ rearranged wherever considered necessary.

Signature to Schedules 1 to 17

As per our report of even date For & on behalf of the Board
For Lodha & Co.
Chartered Accountants

Saurabh Chhajer (Naveen Jindal) (Dr. R.P. Singh) (Sushil K. Maroo)

Partner Chairman Executive Vice Chairman Dy. Managing Director
Membership No. 403325

Place : New Delhi (Dhiraj Kumar Maggo)

Date : 3rd May, 2010 Dy. Company Secretary

Annual Report 2009-10 83

 Corporate Strengths
About JPL Chairman’s Review Future Projects
and Strategies

Balance Sheet Abstract and Company’s General Business Profile

I. REGISTRATION DETAILS
Registration No. U04010CT1995PLC008985 State Code 1 0
Balance Sheet Date 3 1 . 0 3 . 2 0 1 0
II. CAPITAL RAISED DURING THE YEAR (AMOUNT IN RS. THOUSAND)
Public Issue N I L Rights Issue N I L
Bonus Issue 4 4 9 6 0 0 0 Private Placement 3 1 5 0 0 0
III. POSITION OF MOBILISATION AND DEPLOYMENT OF FUNDS (AMOUNT IN RS. THOUSAND)
Total Liabilities 6 1 0 3 4 4 0 5 Total Assets 6 1 0 3 4 4 0 5
Sources of Funds
Paid-up Capital 1 3 4 8 8 0 0 0 Reserves & Surplus 3 2 5 8 9 0 3 1
Secured Loans 1 0 6 5 2 5 5 0 Unsecured Loans 3 0 0 0 0 0 0
Advance agt. Share Application money N I L
Application of Funds
Net Fixed Assets 3 0 3 3 5 4 0 5 Investments 6 4 6 7 3 3
Capital Advances 6 3 9 5 7 0 0 Misc Expenditure 4 5 9 4 6
Expenditure during Construction period 2 5 0 7 3 4 0
Net Current Assets 2 1 1 0 3 2 8 1
Accumulated Losses N I L
IV. PERFORMANCE OF COMPANY
Turnover (Sales & Other Income) 4 0 5 4 9 2 5 3 Total Expenditure 1 2 4 5 2 5 2 0
Profit before tax 2 8 0 9 6 8 3 3 Profit after tax 2 3 1 8 7 5 7 5
Earning per share (In Rs.) 1 7 . 3 2 Dividend rate (In %) 7
V. GENERIC NAMES OF PRINCIPAL PRODUCT OF THE COMPANY
Item Code No. N I C COD E 4 0 0 . 2
Product Description Generation and Transmission
of Electric Energy Produced
in Coal Based Thermal Power
Plant

For & on behalf of the Board

(Naveen Jindal) (Dr. R.P. Singh) (Sushil K. Maroo)

Chairman Executive Vice Chairman Dy. Managing Director

Place : New Delhi (Dhiraj Kumar Maggo)

Date : 3rd May, 2010 Dy. Company Secretary

84 Jindal Power Limited

 Corporate Social Financial
The Board Directors’ Report
Responsibility Statements

Cash Flow Statement for the year ended 31st March 2010
(Rs. in Crores)
Particulars For the Year ended For the Year ended
31.03.2010 31.3.2009
A CASH INFLOW(OUTFLOW) FROM OPERATING ACTIVITIES
Net Profit Before Tax And Extraordinary Items 2,809.68 1,920.44
Adjustment For:-
Depreciation 521.89 590.78
Miscellaneous expnditure written off during the year - 56.51
Loss/(Profit) on sale of Fixed Assets (Net) (3.92) 0.05
Dividend received on Investment - (0.07)
Interest Paid (Net) 124.99 267.83
Profit on Sale of Current Investments (Net) (10.03) -
Operating Profit before working capital changes 3,442.61 2,835.54
Adjustment for:-
Inventories (46.27) (12.75)
Loans & Advances 23.68 (17.23)
Sundry Debtors 3.74 (105.45)
Income Tax Paid (470.46) (205.86)
Current Liabilities & Provisions (28.59) (181.90)
Cash outflow from working capital changes 2,924.71 2,312.35
B CASH INFLOW / (OUTFLOW) FROM INVESTMENT ACTIVITIES
Purchases of Fixed Assets (53.55) (2,186.05)
Sale Proceeds of Fixed Assets 13.74 0.08
Loans & Advances (1,324.81) (761.56)
(Increase)/Decrease in current Investment 137.06 (147.43)
Additions to Capital work in progress (79.97) 1,308.96
Dividend received on Investment - 0.07
Sale of Investment in Subsidiary 61.00 -
Investment in Subsidiary (8.27) -
Interest Income 83.30 22.65
Cash outflow from Investing Activities (1,171.50) (1,763.28)
C CASH INFLOW / (OUTFLOW) FROM FINANCING ACTIVITIES
Issue of Equity Share Capital 31.50 -
Dividend Paid (86.77) -
Miscellaneous expanditure (4.59) -
Corporate tax on Dividend (14.75) -
Interest Paid (229.20) (290.48)
Proceeds from Borrowings 476.94 128.90
Repayment of Borrowings (2,244.45) (81.07)
Net cash inflow/(outflow) from Financing Activities (2,071.32) (242.65)
Net Changes In Cash & Cash Equivalents (A+B+C) (318.11) 306.42
Cash & Cash equivalents (Opening Balance) 334.13 27.71
Cash & Cash equivalents (Closing Balance) 16.02 334.13
Notes:
- Cash & Cash Equivalents represents Cash, Cheques in hand & Bank balances.
- Previous year figures have been regrouped / rearranged wherever necessary to facilitate comparison with current year figures.

As per our report of even date For & on behalf of the Board
For Lodha & Co.
Chartered Accountants

Saurabh Chhajer (Naveen Jindal) (Dr. R.P. Singh) (Sushil K. Maroo)

Partner Chairman Executive Vice Chairman Dy. Managing Director
Membership No. 403325

Place : New Delhi (Dhiraj Kumar Maggo)

Date : 3rd May, 2010 Dy. Company Secretary

Annual Report 2009-10 85

86
About JPL

Jindal Power Limited

Name of Subsidiary Currency Issued & Reserves Total Total Investments Total Turnover Profit/ Provision Profit/ Proposed
Company Subscribed assets liabilities (Loss) for (Loss) Dividend
share before Taxation After
capital Taxation Taxation
Long Current
Term
Jindal Power INR in
Chairman’s Review

0.05 Nil 0.05 0.05 Nil Nil Nil Nil Nil Nil Nil -
Transmission Limited Crores
Jindal Power INR in
0.05 Nil 0.05 0.05 Nil Nil Nil Nil Nil Nil Nil -
Distribution Limited Crores
Jindal Hydro Power INR in
0.05 Nil 0.05 0.05 Nil Nil Nil Nil Nil Nil Nil -
Limited Crores
Jindal Power Trading INR in
7.60 0.33 7.93 7.93 Nil 0.00 0.00 0.06 0.36 0.11 0.25 -
Company Limited Crores
Etalin Hydro Electric INR in
and Strategies

1.00 Nil 246.00 246.00 Nil Nil Nil Nil Nil Nil Nil -
Power Company Limited Crores
Corporate Strengths

Attunli Hydro Electric INR in

1.00 Nil 15.00 15.00 Nil Nil Nil Nil Nil Nil Nil -
Power Company Limited Crores
Future Projects

Statement Pursuant to exemption under Section 212 (8) of Companies Act, 1956 relating to Subsidiary Companies
 Corporate Social Financial
The Board Directors’ Report
Responsibility Statements

Auditors’ Report on the Consolidated Financial Statement

To the Board of Directors of Jindal Power Limited on the Consolidated Financial Statements of Jindal Power Limited and
its Subsidiaries
We have examined the attached Consolidated Balance Sheet of Jindal Power Limited and its subsidiaries as at 31st March
2010, and the Consolidated Profit and Loss Account and also the Consolidated cash flow statement for the year then
ended, annexed thereto.
1. These Consolidated Financial Statements are the responsibility of the Jindal Power Limited’s management. Our
responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in
accordance with generally accepted auditing principles in India. These standards require that we plan and perform
the audit to obtain reasonable assurance about whether the financial statements are prepared, in all material
respect, in accordance with an identified financial reporting framework and are free of material misstatement.
An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the Financial
Statements. An audit also includes assessing the accounting principles used and significant estimates made by the
management, as well as evaluating the overall financial statement presentation. We believe that our audit provide
a reasonable basis for our opinion.
2. (a) We did not audit the financial statements of subsidiaries namely, Jindal Power Distribution Limited, Jindal
Hydro Power Limited, Jindal Power Trading Company Limited, Attunli Hydro Electric Power Company Limited,
Etalin Hydro Electric Power Company Limited and Subansiri Hydro Electric Power Company Limited for the
year/period ended March 31, 2010, whose financial statement reflects total assets of Rs. 350.48 Crore at
31st March 2010 and total revenue Rs. 0.52 Crore for the year/period then ended, and financial statements
of Jindal Petroleum Limited and Power Plant Engineers Limited for the three months period ended June 30,
2009, whose financial statement reflects total assets of Rs. 136.52 Crore as at 30th June 2009. These financial
statements of above subsidiaries has been audited by other auditors whose report have been furnished to us,
and our opinion, in so far as it relates to the amounts included in respect of the subsidiaries, is based solely on
the report of the other auditors.
(b) We did not audit the financial statements of foreign subsidiaries namely, Jindal Petroleum (Georgia) Limited
and Jindal Petroleum (Mauritius) Limited for the three months period ended 30th June 2009, whose financial
statements reflect total assets of Rs. 253.40 Crore as on 30th June 2009 and total revenue of Rs. 0.003 Crore
for the period then ended. The said financial statements, which were furnished to us by the management,
were unaudited. We are unable to express an opinion on true and fair view insofar as it relates to amounts
considered in the Consolidated Financial Statements of subsidiaries for the reason as stated above.
3. We report that the Consolidated Financial Statements have been prepared by the Jindal Power Limited in accordance
with the requirements of Accounting Standard (AS) 21 on ‘Consolidated Financial Statements’, prescribed by the
Companies (Accounting Standards) Rules, 2006, on the basis of the separate audited financial statements of Jindal
Power Limited and its aforementioned subsidiaries.
4. On the basis of the information and explanations given to us and on the consideration of the separate audit
reports on individual audited financial statement of the Jindal Power Limited and its subsidiary (including unaudited
financial statement of two foreign subsidiaries) included in the consolidated financial statement, we are of the
opinion that the said consolidated financial statements read together with Notes on Accounts of Consolidated
Financial Statements, we are of the opinion that:-
a) In the case of the Consolidated Balance Sheet gives a true and fair view of the consolidated state of affairs of
the Jindal Power Limited and its subsidiaries as at 31st March 2010;
b) In the case of the Consolidated Profit and Loss Account gives a true and fair view of the consolidated results
of operations of the Jindal Power Limited and its subsidiaries for the year then ended; and
c) In the case of the Consolidated Cash Flow Statement gives a true and fair view of the consolidated cash flow
of the Jindal Power Limited and its subsidiaries for the period then ended.

For LODHA & CO.

Chartered Accountants

(Saurabh Chhajer)
Partner
Place: New Delhi Membership No.: - 403325
Date: 3rd May, 2010 Firm Registration No.: 301051E

Annual Report 2009-10 87

 Corporate Strengths
About JPL Chairman’s Review Future Projects
and Strategies

Consolidated Balance Sheet as at 31st March 2010

(Rs. in Crores)
Schedule As at As at
Particulars
No. 31.03.2010 31.03.2009
SOURCES OF FUNDS
Shareholders’ Funds
Share Capital 1 1,348.80 867.70
Reserve & Surplus 2 3,259.12 1,501.32
4,607.92 2,369.02
Minority Interest 1.64 0.05

Loans Funds
Secured Loans 3 1,065.26 3,132.76
Unsecured Loans 4 300.00 -
1,365.26 3,132.76
Deferred Tax Liabilities (Net) (Refer note no.9 of schedule 17 B) 130.48 117.27
TOTAL 6,105.30 5,619.10
APPLICATION OF FUNDS
Fixed Assets 5
Gross Block 4,175.33 4,184.39
Less: Depreciation 1,141.18 623.36
Net Block 3,034.15 3,561.03
Capital Work in Progress (including Capital advances) 6 1,225.78 811.92
(Refer Note No. 4 of Schedule 17B)
TOTAL 4,259.93 4,372.95
Investments 7 56.25 183.28
Current Assets, Loans & Advances 8
Inventories 73.54 27.27
Sundry Debtors 178.91 182.65
Cash and Bank balances 18.45 338.75
Loans & Advances 2,458.54 1,001.24
TOTAL (A) 2,729.44 1,549.91
Less: Current Liabilities & Provisions 9
Current Liabilities 236.87 156.91
Provisions 708.27 330.25
TOTAL (B) 945.14 487.16
Net Current Assets (A-B) 1,784.30 1,062.75
Miscellaneous Expenditure 10 4.82 0.12
(To the extent not written off or adjusted)
TOTAL 6,105.30 5,619.10
Significant Accounting Policies & Notes to Accounts 17
The Schedules referred herein above form an integral part of the Balance Sheet

As per our report of even date For & on behalf of the Board
For Lodha & Co.
Chartered Accountants

Saurabh Chhajer (Naveen Jindal) (Dr. R.P. Singh) (Sushil K. Maroo)

Partner Chairman Executive Vice Chairman Dy. Managing Director
Membership No. 403325

Place : New Delhi (Dhiraj Kumar Maggo)

Date : 3rd May, 2010 Dy. Company Secretary

88 Jindal Power Limited

 Corporate Social Financial
The Board Directors’ Report
Responsibility Statements

Consolidated Profit & Loss Account for the year ended 31st March 2010

(Rs. in Crores)
Particulars Schedule For the Year ended For the Year ended
No 31.03.2010 31.03.2009
INCOME
Sales and Operational Income 11 3,921.90 3,258.48
Less : Electricity Duty - 1.00
3,921.90 3,257.48
Other Income 12 133.51 58.40
4,055.41 3,315.88
EXPENDITURE
Material, Manufacturing and Other Expenses 13 350.10 293.10
Personnel Expenses 14 42.17 26.46
Administration, Distribution and Other Expenses 15 144.92 174.02
Financial Charges 16 232.41 313.14
Miscellaneous Expenditure written off - 56.51
Depreciation 5 475.82 530.73
1,245.42 1,393.96
PROFIT BEFORE TAXATION 2,809.99 1,921.92
Less: Provison for Taxation
Income Tax 477.57 220.66
Deferred Tax liability/ (assets) (Refer note no. 9 of schedule 17B) 13.21 117.27
Wealth Tax 0.25 0.08
Fringe Benefit Tax - 0.50
PROFIT AFTER TAXATION 2,318.96 1,583.41
Less: Minority Interest* 0.05 0.00
*(Previous Year Rs. 12,150)
Net Profit after Taxation and Minority Interest 2,318.91 1,583.41
Add: Surplus Brought Forward from Previous Year(s) 1,501.32 19.43
Less: Transfer to Foreign Exchange Translation Account (1.61) -
Add: Accumulated Loss of Subsidiaries (On account of disposal 0.15 -
of Subsidiaries)
PROFIT AVAILABLE FOR APPROPRIATION 3,818.77 1,602.84
Capitalisation of Profit by Bonus Issue 449.60 -
Interim Dividend on Equity Shares 94.42 -
Corporate Tax on Interim Dividend 15.68 -
Proposed Dividend on Equity Shares - 86.77
Corporate Tax on Proposed Dividend - 14.75
Balance Carried to Balance Sheet 3,259.07 1,501.32
Basic/Diluted Earning per Equity Share
(Refer note no. 18 of schedule 17B) 17.33 12.02
Significant Accounting Policies & Notes to Accounts 17
The Schedules referred to above form an integral part of Profit & loss Account

As per our report of even date For & on behalf of the Board
For Lodha & Co.
Chartered Accountants

Saurabh Chhajer (Naveen Jindal) (Dr. R.P. Singh) (Sushil K. Maroo)

Partner Chairman Executive Vice Chairman Dy. Managing Director
Membership No. 403325

Place : New Delhi (Dhiraj Kumar Maggo)

Date : 3rd May, 2010 Dy. Company Secretary

Annual Report 2009-10 89

 Corporate Strengths
About JPL Chairman’s Review Future Projects
and Strategies

Schedules
Consolidated Balance Sheet as at 31st March 2010 and Consolidated Profit & Loss Account for the year ended 31st March 2010

(Rs. in Crores)
As at As at
31.03.2010 31.03.2009
SCHEDULE - 1
Share Capital
Authorised
3,000,000,000 Equity Shares (Previous Year 1,000,000,000 Equity Shares) 3,000.00 1,000.00
of Rs. 10 each
Unclassifed Share Capital - 500.00
TOTAL 3,000.00 1,500.00
Issued, Subscribed & Paid up
1,348,798,500 Equity Shares (Previous Year 867,700,000) of Rs. 10 each 1,348.80 867.70
fully paid
Note:
Of the above 1,300,575,000 Equity Shares (Previous Year 867,050,000) are
held by the Holding Company - Jindal Steel & Power Limited
Of the above 449,600,000 Equity Shares were alloted as fully paid bonus
shares by capitalisation of Profit
1,348.80 867.70
SCHEDULE - 2
Reserve & Surplus
Profit & Loss A/c
Surplus in Profit & Loss Account 3,259.07 1,501.32
3,259.07 1,501.32
Foreign Exchange Fluctuation Reserve
Transfer From Profit & Loss Account 1.61 -
Addition During the Year (5.05) -
Less : Deduction on Account of disposal of Subsidiary 3.44 -
- -
Capital Reserve (on Consolidation) 0.05 -
0.05 -
TOTAL 3,259.12 1,501.32
Minority Interest
Opening Balance 0.05 -
Addition on acquisiton of Subisidiaries 1.59 0.05
Deletion on disposal of Subsidiaries 0.05 -
Share of profit for the year (Previous Year Rs. 12,150) 0.05 -
Closing balance 1.64 0.05

90 Jindal Power Limited

 Corporate Social Financial
The Board Directors’ Report
Responsibility Statements

Schedules
Consolidated Balance Sheet as at 31st March 2010 and Consolidated Profit & Loss Account for the year ended 31st March 2010 (Contd.)

(Rs. in Crores)
As at As at
31.03.2010 31.03.2009
SCHEDULE - 3
Loans Fund
Secured Loans
Term Loans:
From Financial Institution - 498.75
From Banks 1,065.26 2,634.01
TOTAL 1,065.26 3,132.76
SCHEDULE - 4
Unsecured Loans
Short Term Loan from Bank 300.00 -
TOTAL 300.00 -

Notes : Secured Loans

I. Term loans from banks and financial institution includes loans of Rs. 1,065.26 Crores (Previous Year Rs. 2,824.36
Crores), which are secured/ to be secured by way of first pari passu mortgage/ charge on all the fixed assets
(tangible and intangible), uncalled capital of the company, receivables accounts, book debts and all rights, titles
and interest in accounts of the company both present and future, and are further secured/ to be secured by way
of hypothecation of all promoter’s receivables realised by sale of energy purchased by the promoters from the
company and deposit in the escrow account/designated account both present and future.

II. Term loans from Banks includes loans of Rs. Nil (Previous Year Rs. 308.40 Crores), which are secured/ to be secured
by way of mortgage / charge on pari passu basis which is second, subsequent and subservient to mortgage/charge
as stated above in note (I)

III. The above said loans are further secured/ to be secured by way of pledge of 51% of the equity share capital issued/
to be issued by the company which are held by the promoter on pari passu basis.

Annual Report 2009-10 91

92
Schedules
About JPL

SCHEDULE - 5

Jindal Power Limited

Fixed Assets (Rs. in Crores)
Gross Block (At Cost) Depreciation Net Block
Particulars As at Additions Sales/ As at Upto For the Sales/ As at As at As at
01.04.2009 Adjustments* 31.03.2010 31.03.2009 Year Adjustments* 31.03.2010 31.03.2010 31.03.2009
Tangible Assets
Freehold Land 12.64 1.57 - 14.21 - - - - 14.21 12.64
Chairman’s Review

Leasehold Land 50.56 - - 50.56 2.43 0.84 - 3.27 47.29 48.13

Buildings 580.97 29.48 (8.67) 619.12 63.34 50.21 (0.40) 113.95 505.17 517.63
Plant & Machinery 3,470.71 9.94 22.05 3,458.60 549.76 465.70 4.20 1,011.26 2,447.34 2,920.95
Office Equipment* 6.65 3.50 (0.13) 10.28 3.08 0.58 (0.01) 3.67 6.61 3.57
Furniture & Fixtures 6.54 3.08 0.06 9.56 2.69 1.42 0.02 4.09 5.47 3.85
Vehicles 6.58 5.26 0.60 11.24 1.64 1.81 0.27 3.18 8.06 4.94
Intangible Assets
Software 0.42 1.34 - 1.76 0.42 1.34 - 1.76 - -
and Strategies

Rights in Oil Blocks* 49.32 46.95 96.27 - - - - - - 49.32

Corporate Strengths

TOTAL 4,184.39 101.12 110.18 4,175.33 623.36 521.90 4.08 1,141.18 3,034.15 3,561.03
Previous Year 1,949.24 2,235.38 0.23 4,184.39 32.68 590.78 0.10 623.36 3,561.03
Depreciation for the Year 521.90
Depreciation of coal handling plant considered seperately 46.06
Capitalisation of Depreciation 0.02
Balance as per Profit & Loss Account 475.82
* Includes on account of disposal of Subsidiaries
Consolidated Balance Sheet as at 31st March 2010 and Consolidated Profit & Loss Account for the year ended 31st March 2010 (Contd.)
Future Projects
 Corporate Social Financial
The Board Directors’ Report
Responsibility Statements

Schedules
Consolidated Balance Sheet as at 31st March 2010 and Consolidated Profit & Loss Account for the year ended 31st March 2010 (Contd.)

(Rs. in Crores)
As at As at
31.03.2010 31.03.2009
SCHEDULE - 6
Capital Work in Progress
Includes Expenditure During Construction Period (Pending Allocation/
Capitalisation)
Cost of Fuel - 48.34
Salary, Wages, Bonus and other benefits 5.16 1.22
Contribution to Provident & Other funds 0.13 0.05
Travelling and Conveyance 8.02 -
Legal, Professional & Consultancy Fees 8.05 0.01
Vehicle Running and Maintenance 0.49 -
Power & Fuel 0.01 -
Depreciation 0.02 -
Rates & Taxes 0.81 0.65
Bank Charges 29.39 0.86
Interest on Term Loans - 28.34
Upfront Fees on Projects 332.50 -
Rent 0.05 -
Other Expenses 6.42 0.02
TOTAL (A) 391.05 79.49
Less:
Sale of Power - 118.98
Interest on Others [(Including TDS Rs. Nil (Previous Year Rs. 0.47 Crores)] - 2.06
Other Income - 1.41
TOTAL (B) - 122.45
TOTAL (A) - (B) = (C ) 391.05 (42.96)
Add: Expenditure incurred upto previous year 1.59 262.10
392.64 219.14
Less: Allocated to Fixed Assets - 217.55
392.64 1.59
Add: Capital Work in Progress (Including Capital Advances) Refer Note no 835.64 810.33
4 of Schedule 17 B
Less: on account of disposal of investment in Subsidiaries 2.50 -
Balance Carried to the Balance Sheet 1,225.78 811.92

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Schedules
Consolidated Balance Sheet as at 31st March 2010 and Consolidated Profit & Loss Account for the year ended 31st March 2010 (Contd.)

(Rs. in Crores)
As at As at
31.03.2010 31.03.2009
SCHEDULE - 7
Investment (Unquoted) (Fully Paid up)
In Equity shares (Non-Trade) (At cost)
Indian Energy Exchange Limited [(1,250,000 (Previous Year 1,250,000) 1.25 1.25
Equity Shares of Rs. 10 each)]
In Mutual Fund (At cost or market value which ever is lower)
323,448.008 Units (Previous Year Nil Units) of UTI Treasury Advantage Fund 40.00 -
- Institutional Plan - Growth
8,895,164,072 Units (Previous Year Nil Units) of LIC MF Liquid Fund - 15.00 -
Growth
Nil Units (Previous Year 35,651,010.501 Units) of Birla Sunlife Dividend - 50.01
option
Nil Units (Previous Year 22,759,675.445 Units) of HDFC Liquid Mutual Fund - 40.02
Nil Units (Previous Year 13,124,068.770 Units ) of Prudendial ICICI - 37.00
Institutional liquid Dividend
Nil Units (Previous Year 15,160,473.613 Units) of Reliance Liquidity Fund - 20.00
Nil Units (Previous Year 2,548,640.810 Units) of SBI Magnum Insta Cash - 5.00
Fund
Nil Units (Previous Year 184,909.157 Units) of Tata Mutual Fund - 30.00
TOTAL 56.25 183.28
SCHEDULE - 8
Current Assets, Loans & Advances
Inventories
(As taken, valued and certified by the management)
i ) Coal & Fuel (At lower of cost and net realisable value) 10.77 11.76
ii) Stores and Spares 62.77 15.51
TOTAL 73.54 27.27
Sundry Debtors
(Unsecured, Considered good unless otherwise stated)
- 0.30
Exceeding six months 178.91 182.35
Others [(including due from Holding Company Rs. 48.59 Crores (Previous
Year Rs. 32.41 Crores)]
TOTAL 178.91 182.65
Cash & Bank Balances
Cash in Hand 0.11 0.16
Cheques in Hand 6.56 66.47
Balances with Scheduled Banks
(i) In current account 11.77 20.11
(ii) In Fixed Deposit Account 0.01 252.01
TOTAL 18.45 338.75
Loans & Advances
(Unsecured, Considered Good unless otherwise stated)
Advance recoverable in cash or in kind or for value to be received 1,701.96 777.52
Advance against Share Application money, pending Allotment 39.50 0.50
Security Deposits 0.09 1.34
Balances with Government Authorities and Others 4.90 1.50
Advance Income Tax, Tax deducted at Source & Tax collected at source 681.90 211.24
Advance Fringe Benefit Tax 0.82 0.68
Interest accrued on Fixed Deposits - 1.93
Interest accrued on Others 29.37 6.53
TOTAL 2,458.54 1,001.24

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Schedules
Consolidated Balance Sheet as at 31st March 2010 and Consolidated Profit & Loss Account for the year ended 31st March 2010 (Contd.)

(Rs. in Crores)
As at As at
31.03.2010 31.03.2009
SCHEDULE - 9
Current Liabilities
Sundry Creditors
Due to Micro, Small & Medium Enterprises* 0.16 -
Due to Others 75.47 131.82
Duties & Taxes 4.11 2.65
Interim Dividend on Equity Shares Payable 94.42 -
Corporate Tax on Interim Dividend Payable 15.68 -
Other Liablilties 47.03 22.44
TOTAL 236.87 156.91
(* To the extent information available and identified by the management)
(Refer Note no.11 of Schedule 17B)
Provisions
For Proposed Dividend - 86.77
For Corporate Tax on Dividend - 14.75
For Gratuity and Leave Encashment 4.97 3.05
For Income Tax 702.49 224.87
For Fringe Benefit Tax 0.81 0.81
TOTAL 708.27 330.25
SCHEDULE - 10
Miscellaneous Expenditure (To the extent not written off or adjusted)
(a) Share Issue Expenses 4.59 -
Less: Written off during the period - -
TOTAL (A) 4.59 -
(b) Preliminary Expenses
Opening Balances 0.23 0.12
Add: Increased during the year - -
0.23 0.12
Less: Written off during the period - -
TOTAL (B) 0.23 0.12
(c) Mine Development Expenses
Opening Balances - 56.51
Add: Increased during the year - -
- 56.51
Less: Written off during the period - 56.51
TOTAL (C) - -
TOTAL (A) + (B)+ ( C )= (D) 4.82 0.12

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Schedules
Consolidated Balance Sheet as at 31st March 2010 and Consolidated Profit & Loss Account for the year ended 31st March 2010 (Contd.)

(Rs. in Crores)
For the Year ended For the Year ended
31.03.2010 31.03.2009
SCHEDULE - 11
Sales and Operational Income
Sale of Power 3,921.90 3,258.48
Less: Electricity Duty - 1.00
Net Sales 3,921.90 3,257.48
SCHEDULE - 12
Other Income
Liabilities no longer required written back 0.08 0.01
Profit on Sale of Fixed Assets 3.93 -
Profit on Sale of Current Investments (Net) 10.03 1.49
Dividend - 0.07
Interest on Others [(Including TDS Rs. 11.94 Crores (Previous Year Rs. 7.90 102.06 34.86
Crores)]
Interest on Fixed Deposits [(Including TDS Rs. 0.52 Crores (Previous Year 2.57 8.70
Rs. 1.92 Crores)]
Income from Technical Services [(Including TDS Rs. 1.17 Crores (Previous 11.71 11.03
Year Rs. 1.25 Crores)]
Foreign Exchange Fluctuation (Net) - 1.61
Miscellaneous Receipts 3.13 0.63
TOTAL 133.51 58.40
SCHEDULE - 13
Material, Manufacturing and Others Expenses
Cost of Fuel 288.22 250.03
Stores and Spares consumed 3.98 4.95
Repairs to Buildings 6.14 12.91
Repairs to Plant and Machinery 46.39 16.61
Other Expenses 5.37 8.60
TOTAL 350.10 293.10
SCHEDULE - 14
Personnel Expenses
Salary, Wages, Bonus and Other Benefits 37.55 23.19
Contribution to Provident and Other Funds 1.67 0.89
Workman & Staff Welfare Expenses 2.95 2.38
TOTAL 42.17 26.46

96 Jindal Power Limited

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Schedules
Consolidated Balance Sheet as at 31st March 2010 and Consolidated Profit & Loss Account for the year ended 31st March 2010 (Contd.)

(Rs. in Crores)
For the Year ended For the Year ended
31.03.2010 31.03.2009
SCHEDULE - 15
Administration, Distribution and Other Expenses
Travelling and Conveyance 3.61 1.57
Legal, Professional & Consultancy Fees 6.49 4.71
Repair and Maintenance - Others 3.96 11.99
Vehicles Running and Maintenance 2.61 1.69
Rates & Taxes 0.31 0.52
Insurance 6.24 1.69
Rent 0.17 0.95
Green Belt Development Expenses 5.69 7.39
Office Maintenance 3.31 3.94
Security Expenses 4.51 3.91
Loss on sale of Fixed Assets 0.01 0.05
Selling & Distribution Expenses 89.00 122.97
Other Expenses 19.01 12.64
TOTAL 144.92 174.02
SCHEDULE - 16
FINANCIAL CHARGES
Interest on
Term Loans 227.96 311.38
Others 1.24 0.01
Bank Charges 3.21 1.75
TOTAL 232.41 313.14

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Schedules
Consolidated Balance Sheet as at 31st March 2010 and Consolidated Profit & Loss Account for the year ended 31st March 2010 (Contd.)

SCHEDULE 17
Significant Accounting Policies & Notes to Accounts
A. Significant Accounting Policies
1. Basis of Accounting
a) The Consolidated financial statements are prepared under the historical cost convention, on going concern
concept and in accordance with the Companies Accounting Standards Rules, 2006. The company follow
mercantile system of accounting and recognised Income and Expenditure on accrual basis to the extent
measurable and where there is certainty of ultimate realisation in respect of Incomes. Accounting Policies
not specifically referred to otherwise, are consistent and in consonance with the generally accepted
accounting principles.

b) The Financial statement of the company and its subsidiary companies has been combined on a line by line
basis by adding together the book value of like item of assets, liabilities, income and expenses, after fully
eliminating intra-group balances and intra group transactions resulting in unrealised profits or losses as
per Accounting Standard -21 ‘Consolidated Financial Statement’ as prescribed in Companies Accounting
Standards Rules 2006.

c) The Consolidated Financial Statement comprises the financial statement of Jindal Power Limited and
financial statements/ consolidated financial statements of its subsidiaries as on 31st March 2010. List
of all subsidiaries including name, country of incorporation, proportion of ownership interest are as
under:-

S.L. Name of Subsidiaries Country of Percentage of Date from which

No. Incorporation Shareholding as become subsidiary
on 31st March,
2010 (%)
1 Jindal Power Transmission Limited India 98.80% 23rd June 2008
2 Jindal Hydro Power Limited India 98.80% 18th August 2008
3 Jindal Power Distribution Limited India 98.80% 27th August 2008
4 Jindal Petroleum Limited@ India 99.92% 10th February
2009
5 Power Plant Engineers Limited @ India - 13th January 2009
6 Attunli Hydro Electric Power Company India 74% 19th May 2009
Limited #
7 Etalin Hydro Electric Power Company India 74% 16th May 2009
Limited #
8 Subansiri Hydro Electric Power India 74% 12th March 2010
Company Limited #
9 Jindal Power Trading Company Limited India 79.34% 2nd May 2009
(formerly known as Chhattisgarh
Energy Trading Company Limited)
10 Jindal Petroleum (Mauritius) Limited*@ Mauritius - 10th February
2009
11 Jindal Petroleum (Georgia) Limited^ Georgia - 10th February
2009
*Subsidiary of Jindal Petroleum Limited
^ Subsidiary of Jindal Petroleum (Mauritius) Limited
# Being special purpose vehicle (SPV), founded by the company and Hydro Power Development
Corporation of Arunachal Pradesh Limited.
@ Ceased to be subsidiary w.e.f 30th June, 2009 and financial statement of these subsidiary companies
have been considered in consolidated financial statements for the period that they were subsidiary
companies during the period.

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Schedules
Consolidated Balance Sheet as at 31st March 2010 and Consolidated Profit & Loss Account for the year ended 31st March 2010 (Contd.)

d) As far as possible, the consolidated financial statements are prepared using uniform accounting policies
for like transactions and other events in similar circumstances and are presented in the same manner as
the company’s separate financial statements.

e) Minority Interest’s share of net profit of consolidated subsidiaries for the year is identified and adjusted
against the income of the group in order to arrive at the net income attributable to shareholders of the
company.

f) Minority Interest’s share of net assets of consolidated subsidiaries is identified and presented in the
consolidated balance sheet separate from liabilities an the equity of the Company’s shareholders.

g) Investments other than in subsidiaries have been accounted as per Accounting Standard (AS) 13
“Accounting for Investments”

h) The difference between the costs to the Holding Company of its investment in the subsidiary companies
over the holding company’s portion of equity of the subsidiary is recognised in the financial statements
as Goodwill or Capital Reserve as the case may be.

i) Other significant accounting policies and Notes to Accounts :

These are set out under “Significant Accounting Policies and Notes to Accounts” as given in the respective
Standalone Financial Statements of the Company and its subsidiaries.

j) Operations of foreign subsidiaries have been considered Non integral by the management; Foreign
exchange transactions are translated at the exchange rates prevailing at the date of transactions.
Difference in exchange resulting from the settlement of such transactions is recognised in the Balance
Sheet as Foreign Currency Translation Reserve Account. Monetary assets and liabilities denominated in
foreign currencies are translated at year end exchange rates. Difference in exchange thereon is recognised
in Balance Sheet as Foreign Currency Translation Reserve Account.
2. Preliminary Expenses:
Preliminary expenses will be written off in the year of start of commercial operation.
B. Notes To Accounts

1. Pursuant to the process of Initial Public Offering, the company has filled the Draft Red Herring Prospectus/
Prospectus with Securities and Exchange Board of India, National Stock Exchange of India and Bombay Stock
Exchange for approval.

2. Operational result of the company for the current year are strictly not comparable with the figures of
corresponding previous year since plant is operating in full capacity of 1,000 MW since 5th September 2008.

3. During the previous year company has initiated implementation of 2,400 MW Thermal Power Plant at Raigarh
in the State of Chhattisgarh and during the year also initiated 1,320 MW Thermal power project located at
Dumka and 660 MW Thermal power project located at Godda in Jharkhand.

4. Capital work in progress includes, fencing of site area, roads, construction/ capital material at site, temporary
construction, site development expenses, plant & machinery in transit/ under erection/ under trial run and
capital advance against project. As part of the project is under implementation, the expenses incurred in
relation thereof have been shown under schedule 6 (Capital work in progress) as part of “Expenditure during
Construction Period” (Pending Allocation/ Capitalisation).

5. Sales include Rs. 49.13 Crores pertaining to supply of power for the year ended March 31, 2009, as per the
terms of settlement agreed in current period.

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Schedules
Consolidated Balance Sheet as at 31st March 2010 and Consolidated Profit & Loss Account for the year ended 31st March 2010 (Contd.)

6. (a) Contingent Liabilities not provided for in respect of (as certified by the management)

(Rs. in Crores)
Particulars As at 31.03.10 As at 31.03.09
I) Exemption from Electricity Duty Pending for final
Approval 6.38 2.68
Development and Environment cess 2.12 1.06
II) Bank Guarantee 124.00 56.05
Letter of credit 5.00 -

7. (a) Estimated amount of contracts remaining to be executed on Capital Account and not provided for
Rs. 5617.09 Crores (net of capital advance Rs. 639.59 Crores) [Previous Year Rs. 4,957.26 Crores (net of
capital advance Rs. 735.72 Crores)].

(b) Company has, for a project in Nepal, agreed to subscribe 48% equity capital in joint venture Company
namely Synergy Infrastructure Pvt. Ltd. amounting to Rs. 1.78 Crores (Nepali Rupees 2.88 Crores).

8. The company has treated net investment in its subsidiary i.e., Jindal Petroleum (Mauritius) Limited as a non-
integral operation from current year and accordingly foreign exchange gain of Rs. 1.61 Crores pertaining to
previous year has been transferred to Foreign Exchange Translation Reserve Account and Foreign exchange
loss of current year amounting Rs. 5.05 Crores has been also debited to such account, to that extent profit has
been higher by amount of Rs. 3.44 Crores.

9. Deferred Tax Assets / Liabilities

The Company operates in power sector is eligible for 100% deduction under Section 80 IA of the Income Tax
Act 1961 of the profits and gains derived from the business for ten consecutive years in the fifteen years block.
In accordance with Accounting Standard Interpretation (ASI)-3 Issued by the Institute of Chartered Accountant
of India, the deferred tax in respect of timing difference which is reversible during the tax holiday period have
not been recognised based on the management assessment on future taxable income. Deferred tax liability
recognised for the year is Rs. 13.21 Crores (Previous Year Rs. 117.27 Crores) on timing difference arising on
depreciation.

10. Provision for Taxation represents Minimum Alternate Tax computed u/s 115JB of the Income Tax Act, 1961.
Tax calculation has been made considering certain allowances/adjustments available, as assessed by the
management.

11. As required by section 22 of The Micro, Small and Medium Enterprises Development Act, 2006 the following
information is disclosed:
Rs. in Crores)
SL.
Particular 31.03.10 31.03.09
No
a) i) Principal amount remaining unpaid at the end of the accounting year 0.16 -
ii) Interest due on above - -
b) The amount of interest paid by the buyer along with amount of payment - -
made to the suppliers beyond the appointed date
c) The amount of interest accrued and remaining unpaid at the end of - -
financial year
d) The amount of interest due and payable for the year of delay in making - -
payment (which have been paid but beyond the due date during the year)
but without adding interest specified under this Act
e) The amount of further interest due and payable in succeeding year, until - -
such interest is actually paid.

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Consolidated Balance Sheet as at 31st March 2010 and Consolidated Profit & Loss Account for the year ended 31st March 2010 (Contd.)

12. (a) Loans and advances includes Rs. 1,198.56 Crores (Previous Year Rs. 39.63 Crores) Inter Corporate Deposits
given to Jindal Steel & Power Limited (The Holding Company), maximum balance outstanding during the
year Rs. 1,229.77 Crores (Previous Year Rs. 407.89 Crores).

(b) Loans and advances includes dues from directors Rs. 0.22 Crores (Previous Year 0.39 Crores) and maximum
balance outstanding during the year Rs. 0.39 Crores (Previous Year Rs. 0.50 Crores).

13. (a) Balances with Scheduled Banks in fixed deposit account include fixed deposit of Rs. 50,000 (Previous Year
Rs. 50,000) pledged with Government Authorities.

(b) Maximum outstanding balance of commercial paper during the year is Rs. 120.00 Crores.

14. Expenses debited to the other heads of accounts:

(Rs. in Crores)
Particulars For the Year ended For the Year ended
31.03.10 31.03.09
Job Work Charges 55.49 52.38
Stores & Spares Consumed 15.90 10.36
Coal Handling Expenses. 2.17 2.68
Power & Fuel Expenses 35.65 26.89
Operation & Maintenance – Coal Mines 14.52 18.45
Salary, wages, bonus and other benefits 3.39 2.22
Contribution to Provident Fund 0.16 0.10
Other Expenses 4.46 4.44
Depreciation 46.06 60.05
Freight & Transportation 1.15 4.22
Royalty 41.46 35.93
Rates & Taxes 3.22 4.61
Excise Duty on Coal 5.25 4.61
Repair & Maintenance –Others 41.60 -

15. In the opinion of the Board, Current Assets, Loan & Advances have a value on realisation in the ordinary course
of business at least equal to the amount at which they are stated and provision for all known liabilities been
made.

16. The Company has only one business segment i.e. Power Generation, Sale & its related Technical Consultancy
and one geographical reportable segment i.e. operations within India, hence segment reporting as defined in
Accounting Standard (AS-17) is not given.

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Schedules
Consolidated Balance Sheet as at 31st March 2010 and Consolidated Profit & Loss Account for the year ended 31st March 2010 (Contd.)

17. Related Party Disclosure as required by Accounting Standard - 18 prescribed under Companies
(Accounting Standards) Rules, 2006 (As certified by Management)
A) List of Related Parties & Relationships

a) Holding Company
Jindal Steel & Power Limited (JSPL)

b) Associates
Nalwa Steel & Power Limited (ceased to be Associates w.e.f. 01.04.09)

c) Key Management Personnel

Dr. Rajendra Prasad Singh Executive Vice Chairman

Sh. Sushil Kumar Maroo Deputy Managing Director
Sh. K. K. Sinha Whole Time Director
Sh. Pradip Kumar Chakraborty Whole Time Director
Sh. Anand Goel Director

B) Transactions with Related Parties

(Rs. in Crores)
Sl Nature of Transactions Key Management
Holding Company Associates
No. Personnel
Particulars Current Previous Current Previous Current Previous
Year Year Year Year Year Year
1. Sale of Power 197.85 59.67 Nil Nil Nil Nil
2. Sale - Scrap 0.01 0.02 Nil Nil Nil 0.25
3. Technical Services 12.91 11.03 Nil Nil Nil Nil
charged
4. Purchases - Capital 11.13 6.47 Nil Nil Nil 5.64
Goods & other goods
5. Sales - Capital Goods 13.29 Nil Nil Nil Nil Nil
& other goods
6 Service charges Paid 8.07 Nil Nil Nil Nil Nil
7. Loans & advances
Given for Capital Nil 402.52 0.10 0.50 Nil Nil
Purchases/Services &
others
8. Advance against share
application money/ 6.03 Nil Nil Nil Nil Nil
Shares Purchased
9. Reimbursement of
expenses incurred on 5.50 1.28 Nil Nil Nil Nil
our behalf
10. Recovery of expenses 0.54 0.39 Nil Nil Nil Nil
incurred
11. Inter Corporate 1,746.02 1,715.58 Nil Nil Nil Nil
deposit given
12. Inter Corporate 587.09 1,675.95 Nil Nil Nil Nil
deposit refunded
13. Interest Income 61.37 28.48 Nil Nil Nil Nil
14. Remuneration Nil Nil 6.43 2.98 Nil Nil
15 Loans & advances
Taken Nil 0.80 Nil Nil Nil Nil
Refunded Nil 0.80 Nil Nil Nil Nil
16 Payment made for
capital purchase/ Nil Nil Nil Nil Nil Nil
services
Outstanding Balance As on 31.03.10
17. Creditors 0.36 1.97 Nil Nil Nil Nil
18. Debtors 48.59 32.41 Nil Nil Nil 0.04
19. Loan & advances Nil 402.52 0.22 0.39 Nil Nil
Receivable
20. Inter Corporate 1,198.56 39.63 Nil Nil Nil Nil
Deposit

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Consolidated Balance Sheet as at 31st March 2010 and Consolidated Profit & Loss Account for the year ended 31st March 2010 (Contd.)

18. Earning per share (EPS):

(Rs. in Crores)
Particulars For the Year ended For the Year ended
31.03.10 31.03.09
Profit/ (loss) attributable to equity share holders 2,318.95 1,583.41
Weighted number of equity shares 1,338,442,463 1,317,300,000*
Basic/ Diluted EPS (Rs.) 17.33 12.02*

* Restated due to Bonus shares.

19. Figures pertaining to the subsidiary companies have been reclassified wherever necessary to bring them in line
with parent Company’s Financial Statements.

Signature to Schedules 1 to 17

As per our report of even date For & on behalf of the Board
For Lodha & Co.
Chartered Accountants

Saurabh Chhajer (Naveen Jindal) (Dr. R.P. Singh) (Sushil K. Maroo)

Partner Chairman Executive Vice Chairman Dy. Managing Director
Membership No. 403325

Place : New Delhi (Dhiraj Kumar Maggo)

Date : 3rd May, 2010 Dy. Company Secretary

Annual Report 2009-10 103

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Consolidated Cash Flow Statement for the year ended 31st March 2010
(Rs. in Crores)
For the Year ended For the Year ended
Particulars
31.03.2010 31.03.2009
A CASH INFLOW(OUTFLOW) FROM OPERATING ACTIVITIES
Net Profit Before Tax And Extraordinary Items 2,809.99 1,921.92
Adjustment For:-
Depreciation 521.90 590.78
Miscellaneous expenditure written off during the year - 56.51
Loss/ (Profit) on sale of Fixed Assets (Net) (3.92) 0.05
Dividend received on Investment - (0.07)
Interest Paid (Net) 124.57 267.83
Profit on Sale of Current Investments (Net) (10.03) -
Operating Profit before working capital changes 3,442.51 2,837.02
Adjustment for:-
Inventories (46.27) (12.75)
Loans & Advances 82.15 (8.36)
Sundry Debtors 3.74 (105.45)
Income Tax Paid (470.51) (205.86)
Current Liabilities & Provisions (29.21) (181.77)
Cash outflow from working capital changes 2,982.41 2,322.83
B CASH INFLOW/ (OUTFLOW) FROM INVESTMENT ACTIVITIES
Purchases of Fixed Assets (101.12) (2,235.38)
Sale Proceeds of Fixed Assets 13.74 0.08
Loans & Advances (985.53) (777.52)
(Increase)/ Decrease in Current Investment 137.06 (86.28)
Additions to Capital work in progress (416.36) 1,307.36
Dividend received on Investment - 0.07
Sale of investment in Subsidiary 61.00 -
Investment in Subsidiary (6.05) -
Transfer to Foreign Exchange Fluctuation Reserve (5.05) -
Interest Income 83.72 -
Miscellaneous expenses (0.11) (0.12)
Cash outflow from Investing Activities (1,218.70) (1,791.79)
C CASH INFLOW/ (OUTFLOW) FROM FINANCING ACTIVITIES
Issue of Equity Share Capital 31.50 -
Dividend Paid (86.77) -
Corporate tax on Dividend (14.75) -
Share Issue Expenses (4.59) -
Interest Paid (229.20) (267.83)
Proceeds from Borrowings 476.94 128.90
Repayment of Borrowings (2,244.44) (81.07)
Cash inflow/ (outflow) from Financing Activities (2,071.31) (220.00)
Net Changes In Cash & Cash Equivalents (A+B+C) (307.60) 311.04
Cash & Cash equivalents (Opening Balance) 338.75 27.71
On account of acquisition/ disposal of Subsidiaries (Net) (12.70) -
Cash & Cash equivalents (Closing Balance) 18.45 338.75
Notes:

- Cash & Cash Equivalents represents Cash, Cheques in hand & Bank balances.
- Previous year figures have been regrouped / rearranged wherever necessary to facilitate comparison with current
year figures.

As per our report of even date For & on behalf of the Board
For Lodha & Co.
Chartered Accountants

Saurabh Chhajer (Naveen Jindal) (Dr. R.P. Singh) (Sushil K. Maroo)

Partner Chairman Executive Vice Chairman Dy. Managing Director
Membership No. 403325

Place : New Delhi (Dhiraj Kumar Maggo)

Date : 3rd May, 2010 Dy. Company Secretary

104 Jindal Power Limited

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Statement Pursuant to Section 212 (1) of the companies Act, 1956 relating to Subsidiary Company
1 Name of the Subsidiary Subansiri Hydro Electric Power Company Ltd
2 Financial year of the Company 12.03.2010 to 31.03.2010
3 Shares held in the Subsidiary Company at the end of the 7,40,000 Equity Shares of Rs. 10/- each
financial year of the Subsidiary Company
4 Extent of holding 74%
5 Change in the Company’s interest in the Subsidiary between Financial year of the company and the
the end of the Financial Year of the Subsidiary and the end of subsidiary ended on 31.03.2010
the Company’s Financial Year.

6 Net aggregate amount of subsidiary company’s profits after

deducting its losses or vice versa, so far as it concerns the
members of the holding company which are not dealt with in
the company’s accounts
a) For the year ended March 31, 2010 NA
b) For previous financial years of the subsidiary since it NA
became the holding company’s subsidiary
7 Net aggregate amount of subsidiary company’s profits after
deducting its losses or vice versa, so far as it concerns the
members of the holding company which are dealt with in the
company’s accounts
a) For the year ended March 31, 2010 NA
b) For previous financial years of the subsidiary since it NA
became the holding company’s subsidiary
8 Material changes which have occurred between the end
of the Financial year of the Subsidiary and the end of the
Company’s Financial year in respect of :
a) Fixed Assets NA
b) Investments NA
c) Money lent by the Subsidiary Company NA
d) Moneys borrowed by the Subsidiary Company other than NA
for meeting the Current Liabilities.

For & on behalf of the Board

(Naveen Jindal) (Dr. R.P. Singh) (Sushil K. Maroo)

Chairman Executive Vice Chairman Dy. Managing Director

Place : New Delhi (Dhiraj Kumar Maggo)

Date : 3rd May, 2010 Dy. Company Secretary

Annual Report 2009-10 105

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Financial Statements
of Subsidiary

Subansiri Hydro Electric Power

Company Limited
Directors’ Report 107

Secretarial Compliance Certificate 109

Auditors’ Report 112

Annexure to Auditors’ Report 113

Balance Sheet 115

Schedules to Financial Statements 116

Significant Accounting Policies and Notes to Accounts 117

Balance Sheet Abstract 119

Cash Flow Statement 120

106 Jindal Power Limited

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Directors’ Report

To,

The Members,

Your Directors have the pleasure in presenting First Annual Report of the Company together with the Audited Statement
of Accounts for the period ended on 31st March, 2010.

FINANCIAL RESULTS

The Company was incorporated on 12th March, 2010 as a joint venture company by Jindal Power Limited (JPL) and
Hydro Power Development Corporation of Arunachal Pradesh Limited (HPDCAPL) a public sector undertaking set up by
the Government of Arunachal Pradesh (“GoAP”). JPL and HPDCAPL hold shares in the Company in ratio of 74:26. The
Company is a subsidiary company of JPL. The Company has not commenced its commercial operations during the period
under report.

DIVIDEND

In view of absence of profits during the period under report, your Directors have not recommended any dividend.

STATUS OF THE PROJECT

The Company is developing a 1600 MW run of the river hydroelectric power project (“Subansiri Middle Project”) on the
Kamla River, a tributary of Subansiri River in the state of Arunachal Pradesh.

On 28th August, 2009, JPL entered into Memorandum of Agreement (”MOA”) with GoAP and HPDCAPL for execution
of Subansiri Middle Project in the state of Arunachal Pradesh. On 29th August, 2009, JPL entered into a Joint Venture
Agreement (“JV Agreement“) with HPDCAPL for development of Subansiri Middle project through a Joint Venture
Company pursuant to which the company was incorporated.

The estimated cost of Subansiri Middle Project is Rs. 11,203 crores. This cost includes an upfront fee (including a
processing fee) to GoAP of Rs. 80 crores, which has been paid by JPL on behalf of the company. The project will be
financed through a mixture of debt and equity. The project is expected to complete by 2018.

The detailed investigation for preparation of detailed project report for this project has already been completed by NHPC
Ltd. and the Company is in the process of acquiring hydrological, geological, meteorological, topography and other
site investigation data/ records from NHPC Ltd. Draft detailed project report was also prepared by NHPC Ltd. which
will be obtained and updated by the Company. The Company is in process of engaging consultants for carrying out
environment impact assessment study, environment management plan, social impact assessment study and updation of
detailed project report for the project.

COMPLIANCE CERTIFICATE

In accordance with the provisions of section 383A of the Companies Act, 1956 read with Companies (Compliance
Certificate) Rules, 2001, the Company has obtained Compliance Certificate from a company secretary in wholetime
practice and a copy of the same is annexed with this Report.

AUDITORS

M/s B. M. Chatrath & Co., Chartered Accountants, D-26, Sector -3, Noida – 201301, auditors of the Company will
retire at the conclusion of the forthcoming Annual General Meeting and being eligible have offered themselves for re-
appointment. The Company has received communication from them to the effect that their re-appointment, if made,
would be within the limits prescribed under section 224(1B) of the Companies Act, 1956.

Your directors recommend their re-appointment as Statutory Auditors of the Company for the financial year 2010-11.

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FIXED DEPOSITS

Your Company has not accepted fixed deposits from public within the meaning of section 58A of the Companies Act,
1956 read with the Companies (Acceptance of Deposits) Rules, 1975.

DIRECTORS

Dr. Rajendra Prasad Singh, Shri Vinod Kumar Abbey, Shri Rajeev Jain, Shri Kapil Mantri and Shri Taru Siga were appointed
as first directors of the Company through Articles of Association. They hold directorship upto ensuing Annual General
Meeting. The Company has received notices for offering their candidature for appointment as director in the ensuing
Annual General Meeting of the Company.

PARTICULARS OF CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS

AND OUTGO

There is no information to be provided in terms of Section 217 (1) (e) of the Companies Act, 1956 read with Rule 2 of the
Companies (Disclosure of Particulars in the Report of Board of Directors) Rules, 1988, regarding conservation of energy and
technology absorption. There has not been any foreign exchange earnings or outgo during the period under report.

PARTICULARS OF EMPLOYEES

During the period under under review, the Company did not have any employee drawing remuneration more than the limits
prescribed in Section 217 (2A) of the Companies Act 1956 read with Companies (Particulars of Employees) Rules, 1975.

DIRECTORS’ RESPONSIBILITY STATEMENT

Pursuant to the requirement under sub section 2AA of Section 217 of the Companies Act, 1956 with respect to the
Directors Responsibility Statement, it is hereby confirmed:

i) that in preparation of the annual accounts for the period ended March 31, 2010, the applicable accounting
standards had been followed along with proper explanations relating to material departures.

ii) that the Directors had selected such accounting policies and applied them consistently and made judgments and
estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company
at the end of the financial year.

iii) that the Directors had taken proper and sufficient care for the maintenance of adequate accounting records in
accordance with the provisions of the Companies Act, 1956 for safeguarding the assets of the Company and by
preventing and detecting fraud and other irregularities.

iv) that the Directors had prepared the accounts for the period ended March 31, 2010, on a `going concern basis’.

By Order of the Board of Directors

Place : New Delhi V. K. Abbey Rajeev Jain

Date : 1st May, 2010 Director Director

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Secretarial Compliance Certificate form (see rule 3)

To,
The Members,
Subansiri Hydro Electric Power Company Limited
Tahung Tatak Building, Near APPSC,
MLA Cottage Road, Itanagar,
A. P. - 791111
CIN: U40102AR2010PLC008301
Authorised Capital Rs. 500.00 Lacs
Paid up Capital Rs. 74.00 Lacs
Date of Incorporation – 12th March 2010

We have examined the registers, records, books and papers of M/s. Subansiri Hydro Electric Power Company Limited as
required to be maintained under the Companies Act, 1956, and the rules made there under and also the provisions as
contained in the Memorandum and Articles of Association of the Company for the period ended on 31st March, 2010.
In our opinion and to the best of the information available to us and according to the examinations carried out by us and
explanations furnished to us by the Company and the management, we certify that in respect of the aforesaid period:

1. The Company has kept and maintained the registers as stated below, as per the applicable provisions of the Act and
the rules laid thereon and all entries therein have been duly recorded.

S. No. Registers as maintained by the Company U/s

1. Register of Members 150
2. Registers and Returns 163
3. Minutes Book of Meetings 193
4. Books of Accounts 209
5. Register of Directors’ Shareholding 307
6. Register of Directors, Managing Directors, Managers and Secretary 303
7. Register of Particulars of Contracts in which Directors are Interested 301

2. The Company has not filed any form and return with the Registrar of Companies during the period under
scrutiny.

3. The company being a public limited company has fulfilled the minimum paid up capital requirement and its number
of members was not less than seven during the period under scrutiny.

4. The Board of Directors had met once on March 12, 2010 during the period under scrutiny. In respect of this meeting
proper notice was given and the proceedings were properly recorded in the Minutes Book maintained for the
purpose.

5. The Company was not required to close its Register of Members during the period under scrutiny.

6. As the company was incorporated on March 12, 2010, hence the company was not required to conduct the Annual
General Meeting for the financial year ended on March 31, 2009.

7. No Extraordinary General Meeting of the Company was held during the period under scrutiny.

8. The Company has not advanced any loans to its directors, or the persons as referred to under Section 295 of the Act.

9. The Company has not entered into any contract falling within the purview of Section 297 of the Act.

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10. The Company has made all the requisite entries in the register as maintained under section 301 of the Act.

11. There are no instances falling within the purview of Section 314 of the Act & hence the Company was not required
to obtain any approval from the Board of Directors, Members or Central Govt., as the case may be, during the
period under scrutiny.

12. The Company has not issued any duplicate shere certificates during the period under scrutiny.

13. The Company:

i. has not deposited any amount in separate bank account as no dividend was declared during the period under
scrutiny.

ii. was not required to post warrants to any member of the Company as no dividend was declared during the
period under scrutiny.

iii. has not transferred any amount to Investor Education and Protection Fund since there was no
unpaid dividend, application money due for refund, matured deposits, matured debentures
and the interest accrued thereon which have remained unclaimed or unpaid for a period of
seven years;

iv. has duly complied with the requirements of section 217 of the Act.

14. The Board of Directors of the Company is duly constituted with five directors and there was no change in the
directorship of the company during the period under scrutiny.

15. The provisions of section 269 of the Act with regard to appointment of Managing Director/ Whole time Director/
Managers are not applicable to the company.

16. The Company has not appointed any sole-selling agents during the period under scrutiny.

17. The Company was not required to obtain any approval of the Central Government, Company Law Board, Regional
Director, Registrar or such other authorities prescribed under the various provisions of the Act during the period
under scrutiny.

18. All the directors have disclosed their interest in other firms/companies to the Board of Directors pursuant to the Act
and the rules made there under.

19. The Company has not issued any equity shares during the period under scrutiny.

20. The Company has not bought back any shares during the period under scrutiny.

21. There was no redemption of preference shares or debentures during the period under scrutiny.

22. There was no transaction necessitating the Company to keep in abeyance rights to dividend, rights shares and
bonus shares pending registration of transfer of shares.

23. The Company has not invited/ accepted any deposits including any unsecured loans falling with in the purview of
Section 58A during the period under scrutiny.

24. The Company does not attract provisions of section 293(1) (d) of the Act.

110 Jindal Power Limited

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25. The provisions of section 372A are not applicable to the company.

26. The Company has not altered the provisions of the Memorandum with respect to situation of the Company’s
registered office from one state to another during the period under scrutiny.

27. The Company has not altered the provisions of the Memorandum with respect to the object of the Company during
the period under scrutiny.

28. The Company has not altered the provisions of the Memorandum with respect to name of the Company during the
period under scrutiny.

29. The Company has not altered the provisions of the Memorandum with respect to share capital of the Company
during the period under scrutiny.

30. The Company has not altered its Articles of Association during the period under scrutiny.

31. There was no prosecution initiated against or show cause notices received by the Company and no fines or penalties
or any other punishment was imposed on the Company during the period under scrutiny, for the offences under
the Act.

32. The Company has not received any money as security from its employees during the period under scrutiny.

33. The Company has not constituted a separate Provident Fund Trust for its employees/ class of officers as contemplated
under section 418 of the Act.

Place : New Delhi Signature : Sd/-

Date : 1st May, 2010 Name of the Company Secretary : Anchal Mittal
Membership No. : 21446
C.P. No. : 7825

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Auditors’ Report To the Members of M/s. Subansiri Hydro Electric Power Company Limited

We have audited the attached Balance Sheet of M/s Subansiri Hydro Electric Power Company Limited as at 31st March,
2010 and also Cash Flow Statement of the company for the period ended on that date. These Financial Statements
are the responsibility of the Company’s management. Our responsibility is to express an opinion on these Financial
Statements based on our Audit.

We conducted our Audit in accordance with Auditing Standards generally accepted in India. Those standards require
that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from
material misstatement. An Audit includes examining, on a test basis, evidence supporting the amounts and disclosures
in the financial statements. An Audit also includes assessing the accounting principles used and significant estimates
made by management as well as evaluating the overall financial statement presentation. We believe that our audit
provides a reasonable basis for our opinion and we report that:

1. As required by the Companies (Auditor’s Report) order, 2003 issued by the Central Government of India in terms of
sub-section (4A) of section 227 of the Companies Act, 1956, we enclose in the annexure a statement on the matters
specified in paragraphs 4 and 5 of the said order.

2. Further to our comments in the annexure referred to above, we report that:

(i) We have obtained all the information and explanations, which to the best of our knowledge and belief were
necessary for the purpose of our audit.

(ii) In our opinion, proper books of accounts as required by law have been kept by the company, so far as appears
from our examination of those books.

(iii) The Balance Sheet and Cash Flow Statement dealt with by this report are in agreement with the books
of accounts.

(iv) In our opinion, the Balance Sheet and Cash Flow Statement comply with the accounting standards referred to
in sub-section (3C) of section 211 of the Companies Act, 1956.

(v) On the basis of written representations received from the Directors, as on 31st March, 2010 and taken
on record by the Board of Directors, we report that none of the Director is disqualified as on 31st March,
2010 from being appointed as a Director in terms of clause (g) of sub-section (1) of section 274 of the
Companies Act, 1956.

(vi) In our opinion and to the best of our information and according to the explanations given to us, the said
accounts give the information required by the Companies Act, 1956, in the manner so required and give a true
and fair view in conformity with the Accounting Principles Generally Accepted in India.

a) In the case of the Balance Sheet, of the state of affairs of the company as at 31st March, 2010;

b) In the case of Cash Flow Statement, of the cash flows for the period ended on that date.

For B. M. Chatrath & Co.,

Chartered Accountants

Place: New Delhi Umesh C. Pandey

Date: 1st May, 2010 Partner

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Annexure to the Auditor’s Report (Referred to in Paragraph 1 of our Report of even date of accounts of
M/s Subansiri Hydro Electric Power Company Limited for the period ended 31st March, 2010)

i. (a) The Company does not have fixed assets therefore maintenance of reasonable proper records showing
particulars including quantitative details and situation of fixed assets are not applicable.

(b) As the company does not have any fixed assets, hence physical verification to be done by the management
during the year at reasonable intervals is not applicable.

(c) According to information and explanation given to us, since the company does not have any fixed assets,
hence company has not disposed off a substantial part of the fixed assets during the year.

ii. (a) The Company does not have inventory therefore physically verification during the period has not been
done by the management.

(b) As the Company does not have any Inventory, hence the applicability of procedures of physical verification
followed by the management in relation to the size of the Company and the nature of its business does
not arise.

(c) As the Company does not have any Inventory, hence the company is not maintaining proper records of
inventory and therefore no Discrepancies noticed on verification between physical stocks and the book
records.

iii. In our opinion and according to the information and explanations given to us, the Company has not granted
or taken unsecured loan to and from parties covered in the register maintained under section 301 of the Act.

iv. In our opinion and according to the information and explanations given to us, there are adequate internal
control procedures commensurate with the size of the Company and the nature of its business with regard to
purchases of inventory and fixed assets and for the sale of goods. During the course of our audit we have not
observed any continuing failure to correct major weakness in internal controls.

v. According to information and explanation given to us, we are of opinion that transactions that need to be
entered into the register maintained in pursuance of section 301 of the Companies Act, 1956 have been so
entered.

vi. In our opinion and according to the information & explanations given to us, the company has not accepted
deposits from the public. Hence Provisions of section 58A, 58AA or other relevant provisions of the companies
Act 1956 and the Companies (Acceptance of Deposit) Rules, 1975 with regards to the deposits accepted from
the public is not applicable.

vii. In our opinion and according to the information and explanation given to us, the company has an internal
control system commensurate with the size and nature of its business.

viii. According to the information and explanation given to us maintenance of cost records has not been prescribed
by the Central Government under clause (d) of sub section (1) of the section 209 of the Act.

ix. (a) The company is regular in depositing with appropriate authorities undisputed statutory dues including
the Provident Fund, Investor Education Protection Fund, Employees State Insurance, Income Tax, Sales
Tax, Cess and any other statutory dues applicable to it.

(b) According to the information and explanation given to us, no undisputed amount payable in respect of
Income Tax, Sales Tax and Cess were in arrears as at 31st March 2010 for a period of more than six months
from the date they became payable.

(c) According to the information and explanation given to us there are no dues of Sales Tax, Income Tax and
Cess, which have not been deposited on account of any dispute.

x. In our opinion, the company does not have any accumulated losses. The company has not incurred cash losses
in the current period under audit.

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xi. In our opinion and according to the information and explanation given to us, the company has not defaulted
in repayment of dues to a financial institution or bank and /or debenture holders.

xii. In our opinion and according to the information and explanation given to us, the company has not granted
any loan and advances on the basis of security by way of pledge of shares, debentures and others securities.

xiii. In our opinion and according to the information and explanation given to us, the company is not a Chit Fund
or a Nidhi Mutual Benefit Fund/ Society therefore the provisions of clause 4 (xiii) of the Companies (Auditors’
Report) Order, 2003 are not applicable to the company.

xiv. In our opinion, the company is not dealing in or trading in shares, securities, debentures and other investments.
Accordingly the provisions of clause 4(xiv) of the Companies (Auditors’ Report) Order, 2003 are not applicable
to the company.

xv. In our opinion the company has not given any guarantee for loan taken by others from bank or financial
institutions, accordingly the provisions of clause 4 (xv) of the Companies (Auditors’ Report) Order, 2003 are
not applicable to the company.

xvi. The company has not obtained Term Loan during the period under audit. Therefore, the utilization for the
purposes for which they were taken does not arise.

xvii. According to the information and explanation given to us, no funds have been raised on short term basis and
therefore have not been utilized for long term investment.

xviii. According to the information and explanations given to us, the company has not made any preferential
allotment of shares to the parties and companies covered in the register maintained under section 301
of the Act.

xix. According to the information and explanations given to us, the company has not issued debentures.

xx. According to the information and explanations given to us, the company has not raised money by
public issue.

xxi. According to the information and explanations given to us, no fraud on or by the company, noticed and
reported during the period.

For B. M. Chatrath & Co.,

Chartered Accountants

Place: New Delhi Umesh C. Pandey

Date: 1st May, 2010 Partner

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Balance Sheet as at 31st March 2010

(Amount in Rs.)
Schedule As at
Particulars
No. 31st March 2010
SOURCES OF FUNDS
Shareholders’ Fund
Share Capital 1 10,000,000
Advance Against Share Application Money pending allotment 800,000,000
TOTAL 810,000,000
APPLICATION OF FUNDS
Fixed Assets
- Capital Work in Progress 2 802,668,444
802,668,444
Current Assets, Loans & Advances
- Cash & Bank Balance 3 7,400,000
- Loans & Advances 4 2,600,000
10,000,000
Less: Current Liabilities & Provisions
- Current Liabilities 5 3,071,826
3,071,826
Net Current Assets 6,928,174
Miscellaneous Expenditure 6 403,382
(To the extent not written off or adjusted)
TOTAL 810,000,000
Significant accounting policies & notes to accounts 7 -
The accompanying schedules 1 to 7 form an integral part of this Balance Sheet.

In terms of our report of even date

For B.M.CHATRATH & CO.
Chartered Accountants

(Umesh C.Pandey) (Dr. R.P. Singh) (Vinod K.Abbey)

Partner Director Director
Membership No. 55252

Place : New Delhi

Date : 1st May, 2010

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Schedules
forming part of Balance Sheet as at 31st March 2010

(Amount in Rs.)
As at 31st March
2010
SCHEDULE 1
Share Capital
Authorised
5,000,000 Equity Shares of Rs. 10/- each 50,000,000
Issued & Subscribed Share Capital
1,000,000 Equity Shares of Rs. 10/-each fully paid 10,000,000
Paid Up Share Capital
(740,000 Equity Shares of Rs. 10/- each fully paid up) 7,400,000
Subscribed But Not Paid
260,000 Equity Shares of Rs. 10/- each 2,600,000
(Being share subscribed by Hydro Power Development
Corporation of Arunachal Pradesh for which subscription has not been received)

TOTAL 10,000,000
SCHEDULE 2
Fixed Assets
Capital Work -in Progress
Preoperative Expenditure
Professional Charges 694,900
Audit fees 5,515
Salary Expenses 1,447,991
Travelling Expenses 520,038
Upfront Fees 800,000,000
TOTAL 802,668,444
SCHEDULE 3
Cash & Bank Balances
- Cash in Hand -
- Balance with Scheduled Banks in Current Account -
- Cheques in Hand 7,400,000
TOTAL 7,400,000
SCHEDULE 4
Loans & Advances
Receivables (Against Share Capital) 2,600,000
SCHEDULE 5
Current Liabilities & Provisions
Sundry Creditors 45,167
TDS Payable 5,020
Expenses Payable 3,021,639
TOTAL 3,071,826
SCHEDULE 6
Miscellaneous Expenditure
Preliminary Expenses
Registration Fees 358,500
Stamping Charges of MOA 710
Professional Fees for Incorporation 44,172
TOTAL 403,382

116 Jindal Power Limited

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Schedules
forming part of Balance Sheet as at 31st March 2010 (Contd.)

SCHEDULE - 7
Significant Accounting Policies & Notes to Accounts
A. Significant Accounting Policies.

1. Basis of Preparation of Financial Statements:

The accounts of the Company are prepared under the historical cost convention and in accordance with
applicable Accounting Standards except where otherwise stated. For recognition of income and expenditure,
mercantile system of accounting is followed. Accounting policies not specifically referred to otherwise, are
consistent and in consonance with the generally accepted accounting principles.

2. Miscellaneous Expenditure:

Preliminary expenses shown under Misc. Expenditure will be written off from the date of start of commercial
operation.

3. Related Party Disclosure

Related party disclosure as required by Accounting Standard - 18 issued by Institute of Chartered Accountants
of India: -

I. List of Related Parties & Relationships

(a) Holding Company: - Jindal Power Ltd.

(b) Companies having substantial interest:- Hydro Power Development Corporation of Arunachal Pradesh
Limited

II. Transactions with Related Parties

(Amount in Rs.)
Nature of Holding Fellow Corporate Key Associates
Transactions Company Subsidiary having Management
Companies Significant Personnels
Influence
Current Current Current Current Current
Period Period Period Period Period
Amount received 74,00,000/- Nil Nil Nil Nil
against Share Capital
Receivable
(Against share Nil Nil 26,00,000/- Nil Nil
capital)
Advance Against 80,00,00,000/- Nil Nil Nil Nil
Share Application
Money (Pending
Allotment)
Reimbursement of 30,21,639/- Nil Nil Nil Nil
Expenses
B. Notes to Accounts

5. As the Company has not commenced commercial operations, no Profit & Loss Account for the current period
has been prepared.The accounts for the current period have been prepared for the period ending 31st March,
2010.

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Schedules
forming part of Balance Sheet as at 31st March 2010 (Contd.)

6. Detail of Preliminary Expenditure: (Amount in Rs.)

Stamping Charges of MOA 710.00
Registration Charges 3,58,500.00
Professional Fees 44,172.00
Total 4,03,382.00

7. The details of Auditor’s Remuneration are as under: As on 31.03.2010

Audit Fees 5,515.00

8. This being the first year of the company (company incorporated on 12th March, 2010), previous year figures
is not there.

9. Jindal Power Limited and Hydro Power Development Corporation of Arunachal Pradesh Limited have entered
into a Joint Venture Agreement to develop and operate Subansiri Hydro Electric Power Project and have
subscribed 74% and 26% of the share capital of the Joint Venture Company respectively.

10. Capital work in progress includes Rs. 80,00,00,000/- paid to the Government of Arunachal Pradesh on account
of upfront fees including processing fees for setting of 1600 MW hydro electric power plant.

For B.M.Chatrath & Co.

(Umesh C.Pandey) (Dr. R.P. Singh) (Vinod K.Abbey)

Partner Director Director
Membership No. 55252

Place : New Delhi

Date : 1st May, 2010

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Balance Sheet Abstract and Company’s Business Profile Pursuant to Part IV of Schedule VIto the Companies Act, 1956.

I. REGISTRATION DETAILS
Registration No. U40102AR2010PLC008301 State Code 2 3
Balance Sheet Date 3 1 0 3 2 0 1 0
Date Month Year
II. CAPITAL RAISED DURING THE YEAR (AMOUNT IN RS. THOUSANDS)
Public Issue N I L Rights Issue N I L
Bonus Issue N I L Private Placement N I L
III. POSITION OF MOBILISATION AND DEPLOYMENT OF FUNDS (AMOUNT IN RS. THOUSANDS)
Total Liabilities 8 1 0 0 0 0 Total Assets 8 1 0 0 0 0
Sources of Funds
Paid-up Capital 1 0 0 0 0 Reserves & Surplus N I L
Share Application Money 8 0 0 0 0 0
Secured Loans N I L Unsecured Loans N I L
Application of Funds
Net Fixed Assets 8 0 2 6 6 9 Investments N I L
Net Current Assets 6 9 2 8 Misc Expenditure 4 0 3

IV. PERFORMANCE OF COMPANY (AMOUNT IN RS. THOUSANDS)

Turnover N I L Total Expenditure N I L
+ - Profit/ Loss Before Tax N I L Profit/ Loss After Tax N I L
(Please tick appropriate box+ for Profit and – for Loss)
Earning Per Share in Rs. N I L Dividend % N I L
V. GENERIC NAMES OF THREE PRINCIPAL PRODUCTS/ SERVICES OF COMPANY (AS PER MONETARY ITEMS)
Item Code no. (ITC Code) NA
Production Description NA
Item Code No. (ITC Code) NA
Production Description NA
Item Code No. (ITC Code) NA
Product Description NA

For & on behalf of the Board

Place : New Delhi (Dr. R.P.Singh) (Vinod K.Abbey)

Date : 1st May, 2010 Director Director

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Cash Flow Statement for the period ended 31st March 2010

(Amt. in Rs.)
For the period ended
Particulars
31st March 2010
A CASH INFLOW / (OUTFLOW) FROM OPERATING ACTIVITIES
Cash flow before working capital changes
Adjustments For :-
Current Liabilities & Provisions 3,071,826
Cash outflow from Operating Activities 3,071,826
B CASH INFLOW / (OUTFLOW) FROM INVESTMENT ACTIVITIES
Miscellaneous Expenditure (403,382)
Addition to capital work in progress (2,668,444)
Cash outflow from Investing Activities (3,071,826)
C CASH INFLOW / (OUTFLOW) FROM FINANCING ACTIVITIES
Issue of Equity Share Capital 7,400,000
Net cash inflow/(outflow) from Financing Activities 7,400,000
NET CHANGES IN CASH & CASH EQUIVALENTS(A+B+C) 7,400,000
Cash & Cash equivalents (Opening Balance) -
Cash & Cash equivalents (Closing Balance) 7,400,000

Note:

1. Cash & Cash Equivalents including Cheques in hand represents Cash & Bank balances.

2. Rs. 80,00,00,000/- paid as upfront fees is cash Neutral.

In terms of our report of even date

For B.M.CHATRATH & CO.
Chartered Accountants

(Umesh C.Pandey) (Dr. R.P. Singh) (Vinod K.Abbey)

Partner Director Director
Membership No. 55252

Place : New Delhi

Date : 1st May, 2010

120 Jindal Power Limited

Corporate Information
Board of Directors Registered office
Mr. Naveen Jindal, Non-executive Chairman Jindal Power Limited
Dr. Rajendra Prasad Singh, Executive Vice Chairman Tamnar 496 107, District Raigarh
Mr. Sushil Kumar Maroo, Deputy Managing Director Chhattisgarh, India
Mr. Anand Goel, Non-executive Director Tel.: (91 7767) 302 000
Mr. Kishore Kumar Sinha, Whole-time Director Fax: (91 7767) 281 995
Mr. Pradip Kumar Chakraborty, Whole-time Director
Mr. Ram Vinay Shahi, Independent Director Corporate Office
Mr. Arun Kumar Purwar, Independent Director Jindal Power Limited
Mr. Shardul Suresh Shroff, Independent Director Jindal Centre
Mr. Pradeep Kumar Tripathi, Independent Director 12, Bhikaji Cama Place
Mr. Hardip Singh Wirk, Independent Director New Delhi 110 066, India
Mr. Dhirendra Singh, Independent Director Tel.: (91 11) 2618 8340 - 50
Fax: (91 11) 2616 1271
Deputy Company Secretary
Mr. Dhiraj Kumar Maggo Works
Tamnar 496107, District Raigarh
Bankers Chhattisgarh, India
State Bank of India Tel.: (91 7767) 302 000
Punjab National Bank Fax: (91 7767) 281 995
IDBI Bank Limited

Statutory Auditors
M/s. Lodha & Co.
12, Bhagat Singh Marg
New Delhi 110 001, India
Registered office Corporate Office
Jindal Power Limited Jindal Power Limited
Tamnar 496 107, District Raigarh Jindal Centre
Chhattisgarh, India 12, Bhikaiji Cama Place
Tel.: (91 7767) 302 000 New Delhi 110 066, India
Fax: (91 7767) 281 995 Tel.: (91 11) 2618 8340 - 50
Fax: (91 11) 2616 1271

www.jindalpower.com