Download the Annual Report for 2010-11. - kiocl limited

efforts to cool down the overheating economy, particularly the real estate sector, islikely to impact Chinese steel demand later this year.India is expected to show strong growth in steel consumption in the coming yearsdue to its strong domestic economy, massive infrastructure needs and expansion ofindustrial production. As per the latest forecast for 2011 the consumption of Steel inIndia will grow by 13.3% to reach 168.7 mmt.With the positive outlook for the steel market during 2011-12, the demand for the steelmaking raw materials is expected to grow. However, the increasing capacity additionsin Iron Ore mining and Pellet production around the world are likely to put pressureon pricing of these commodities.6.0 PROFIT AND DIVIDENDIn view of improvement in the financial performance of the Company, the Directors haverecommended payment of Interim Dividend @ 20% of Profit After Tax (Re. 0.08 per share)amounting to ` 5.118 crores plus Dividend distribution Tax as applicable. The Interim Dividendwas paid in January 2011. Keeping in view the good financial performance, your Directorspropose to pay final dividend @ 20.80% of Profit After Tax (Re. 0.25 per share) includingthe Interim Dividend already paid. This works out to ` 15.86 crores excluding Dividend Tax.7.0 MEMORANDUM OF UNDERSTANDING WITH GOVERNMENT OF INDIAYour Company has been signing the Memorandum of Understanding every year with itsAdministrative Ministry, Ministry of Steel. MoU between KIOCL and the Ministry of Steel forthe year 2011-12 was signed on 11.03.2011, envisaging the production target of 3.0 milliontonnes of Pellets for achieving the “Good” performance.24Secretary (Steel), Govt. of India and CMD signing MOU for 2011-12