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

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6. Mechanism for evaluating non-executive Board MembersNot adopted.7. Whistle Blower PolicyWhistle Blower Policy is not a mandatory requirement. Company is yet to frame a policy inthis regard. However, Guidelines / Instructions issued by Govt. of India and CVC are beingfollowed.MANAGEMENT DISCUSSION AND ANALYSIS64i) INDUSTRY STRUCTURE AND DEVELOPMENTThe Company operates in the international Iron Ore market which is highly competitive andvolatile. The demand for Iron Ore is a derived demand linked to the fortunes of the steelindustry, which in turn, depends on the steel consumption pattern. Continued emphasis givenby Govt. towards development of various infrastructure projects is boosting the demand forIron and Steel consumption.The Global recession which has a severe impact on the performance of the Companyduring the year 2009-10 has receded during 2010-11. The price of Pellets has shown signsof improvement from January 2010 onwards and has prompted the Company to increaseproduction. The Company has produced 2.124 million tonnes and sold 2.09 million tonnesof Pellets during the financial year 2010-11 which have surpassed the previous performanceparticularly after the close of captive mine.ii) SWOT AnalysisIn the changing environment, the Company has identified the following strengths, weakness,opportunities and threats:Strength• Strong brand image for KIOCL Pellets.• 100% EOU status.• Production of Pellets from locally available Hematite ore replacing Magnatite ore.• In-house R&D initiatives. Augmentation of production capacity of grinding and filtercircuit to increase production & productivity.• Logistics -• Shore based Pellet plant with dedicated birth and automatic ship loading facility.• Private Railway Siding.• Proximity to NH 17.• Captive Power plant• Skilled Manpower.• Zero Debt / Positive net worth.
WeaknessCorporate Governance (Contd.)• Production units are generally located at mine head or consumption head.The stoppage of Kudremukh mines has denied this.• No Captive mine w.e.f 01-01-2006.• Inadequate quantity of Iron Ore being supplied by M/s NMDC.• Though there is Long Term Agreement with NMDC, prices are revised every quarterthereby, Long Term Contract acquiring the characteristics of Spot Contract.• Blast Furnace Unit with no forward and backword integration.• Holding mining & beneficiation assets at closed Kudremukh unit.Opportunities• Expansion of mining activities with core competence.• Assets and skilled manpower readily available.• Ban on Export of Iron Ore made Ore available at competitive rates as compared toNMDC.• Chikkanayakanahalli mines already allotted, Boundary dispute is being settled.• GOK has made formal commitment for allotment of Ramanadurga mines.Threats• Water availability to our plants from Lakhya Dam, Kudremukh• Low priority for availability of Rakes for Ore movement.• Disputes/Delays in getting new mining leases.• Migration of trained manpower.• Expansion of production capacities by other Pellet plants in Private & Public Sector.• Removal of ban on Iron Ore export.iii)PRODUCT-WISE PERFORMANCEThe following table summarises the production performance during the past three years:-PP: Pellet Plant PI: Pig Iron Plant (Qty. in million tonnes)Year MOU target Actual production Capacity utilisation ofinstalled capacity in %PP PI PP PI PP PI2010-11 2.780 0.100 2.124 - 61 -2009-10 2.650 0.170 1.273 0.062 36 292008-09 2.850 0.196 1.316 0.118 38 5565
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ContentsBoard of Directors 3Notice
Page 10 and 11:
EXPLANATORY STATEMENT PURSUANT TO S
Page 13:
Form of ProxyKIOCL LIMITEDRegd. Fol
Page 16 and 17: Production for Asia was 897.9 milli
Page 18 and 19: PROJECTS UNDER CONSTRUCTION :In my
Page 20 and 21: 18Captive Iron Ore Mine:The Company
Page 22 and 23: Directors’ ReportDear Shareholder
Page 24 and 25: 4.3 The following table summarises
Page 26 and 27: efforts to cool down the overheatin
Page 28 and 29: Plant at Mangalore, KIOCL has to ge
Page 30 and 31: Consultant recommended that KIOCL c
Page 32 and 33: mortar manufacture. This can also b
Page 34 and 35: Other Mining /Prospecting Leases9.4
Page 36 and 37: either from the recognised Union or
Page 38 and 39: Visit of Third Sub-Committee of Par
Page 40 and 41: Former Secretary (Steel) Shri Atul
Page 42 and 43: Groups on rolls of the Company as o
Page 44 and 45: 23.4 Your Company has also nominate
Page 46 and 47: 25.3 Inspections: 7 CTE type inspec
Page 48 and 49: 27. BOARD OF DIRECTORSAppointmenti)
Page 50 and 51: energy audit to quantify the target
Page 53 and 54: Annexure-IICORPORATE GOVERNANCECOMP
Page 55 and 56: is not practical to send the releva
Page 57 and 58: Corporate Governance (Contd.)c) To
Page 59 and 60: Corporate Governance (Contd.)Detail
Page 61 and 62: Corporate Governance (Contd.)(iii)
Page 63 and 64: Corporate Governance (Contd.)(xii)
Page 65: Corporate Governance (Contd.)(xx) R
Page 69 and 70: Corporate Governance (Contd.)local
Page 71 and 72: KIOCL Limited(Formerly Kudremukh Ir
Page 73 and 74: Annexure-IIIASA & ASSOCIATESCharter
Page 75 and 76: C. a. Confirmations of Balances hav
Page 77 and 78: Auditors' Report (Contd.)5. a. In o
Page 79 and 80: Auditors'ReportPara No.COMMENTS/OBS
Page 81 and 82: COMMENTS OF THE COMPTROLLER AND AUD
Page 83 and 84: 3.2 Depreciation in respect of Asse
Page 85 and 86: 7.2 Provision for Leave Encashment
Page 87 and 88: Profit and Loss Account for the yea
Page 89 and 90: Schedule 3FIXED ASSETSG R O S S B L
Page 91 and 92: Schedules (Contd.)Schedule 6CURRENT
Page 93 and 94: Schedules (Contd.)Schedule 7CURRENT
Page 95 and 96: Schedule 10ACCRETION/(-)DEPLETION T
Page 97 and 98: Schedules (Contd.)Schedule 14PRIOR
Page 99 and 100: Schedules (Contd.)Schedule 16NOTES
Page 101 and 102: 5. In pursuance of the directive of
Page 103 and 104: y the Govt of India and is binding
Page 105 and 106: Schedules (Contd.)Year ended Year e
Page 107 and 108: Details of measurement of present v
Page 109 and 110: TYPE OF PLANLONG TERM COMPENSATEDAB
Page 111 and 112: TYPE OF PLANLONG TERM COMPENSATEDAB
Page 113 and 114: Balance Sheet Abstract and Company'
Page 115 and 116: Cash Flow Statement for the year en
Page 117 and 118:
SEGMENT REPORTING FOR THE YEAR ENDE
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