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

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66iv)OUTLOOKThe Company has a large Equity base with no long term Debt to service. This is a source ofstrength to the Company. In order to fruitfully deploy its financial and technical strength forthe future growth of the Company, your Company is exploring the possibilities of enteringinto new areas of business, acquiring new mining leases and formulation of diversificationschemes for implementation.Based on the Board’s direction, for identification of a JV between M/s KIOCL & M/s RINLtowards investment in setting up of DISP plant, Coke Oven Battery, Power plant and Oxygenplant etc., under forward and backward Integration in Blast Furnace unit, the Company hasplaced a work order on M/s ICRA Management Consulting Services Limited for updating thereport on Market Assessment study of Ductile Pipes in India. A work order has also beenplaced on M/s Ernst & Young to study the Financial Analysis for setting up of DISP plant. Awork order has been placed on M/s MECON Limited for preparation of Detailed ProjectReport.The Company proposes to take up implementation of a 0.3 million tonne per annum CokeOven project adopting non-recovery (NR) route at the Blast Furnace unit at Mangalore. Theproject is intended for supply of low Ash Metallurgical Coke for existing Blast Furnace. Theexcess Coke after meeting the demand of the Company will be sold in the market. Theproject also envisages generation of Electric power (25MW CPP) by utilizing the sensibleheat of the hot flue gas from the Ovens.Government of Karnataka had granted mining lease over an area of 116.55 ha in Hombalghattaand Hosahalli villages in favour of KIOCL. Indian Bureau of Mines has already approved mineplan on 23rd September 2008. De-reservation proposal submitted in Form “A” to Nodal officer,Forest department, Govt. of Karnataka for diversion of entire forestland for mining purposeis under process with State Forest Department. Ministry of Environment and Forest, Govt.of India accorded Environment clearance for the project for mining of 1.0 million tonne peryear of Iron Ore and 5000 tonne per annum of Manganese Ore. Karnataka State PollutionControl Board has also accorded consent for establishment of the project under Air Act,1981 and Water Act, 1974. During Joint Survey of mining lease area, it was noticed by theOfficials of Govt. of Karnataka that mining lease area of KIOCL and other two mining leaseallottees are overlapping with each other. On issue of revised mining lease area sketch anddemarcation at site by Govt. of Karnakaka, the same will be provided to State forest forgrant of forest clearance.The Company is trying to get mining leases at Ramanadurg, Karnataka and in SundargarhDistrict, Orissa subject to resolution of legal disputes. The Company is also in the processof setting up of an Integrated Steel plant in the State of Karnataka with Equity participationfrom JV partner.v) RISKS & CONCERNSThe main risks and the area of concern for the Company is non-availability of long-termmining lease. The Company is examining various options like JV in Steel sector, ContractMining, Coal Mining etc which are yet to materialise. Constant pressure is brought from
Corporate Governance (Contd.)local authorities to stop drawl of water from Lakya Dam. Stoppage of water will lead tocomplete closure of both the plants at Mangalore.Due to un-economical price of Pig Iron, BF unit was shut down from 05-08-2009 and therewas no production during 2010-11. An order has been placed on M/s MECON Limited forpreparation of DPR for DISP plant.vi)INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACYThe Internal Audit Department within the Company is strengthened with induction of Officersat senior level. The Internal Audit system is commensurate with the growing size and natureof the business of the Company. The reports of the Internal Auditor are regularly placedbefore the Audit Committee for its review and further guidance.vii) FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCEa) The Financial performance of the Company for the year 2010-11 in brief is furnished below:( ` in crores )Particulars 2010-11 2009-10Sales 1803.46 992.72Profit /(Loss) Before Tax for the year 99.95 (194.95)Profit /(Loss) After Tax 76.27 (177.27)b) Cash Flow informationAn abstract of Cash Flow statement for the year ended on 31st March, 2011 is as under:` in lakhsA) Opening cash and cash equivalents as at 1-4-2010 139348.39B) Net cash from operating activities 3673.46C) Net cash from investing activities 1953.75D) Net cash used in Financing Activities (592.61)E) Cash and Cash equivalent as at 31-03-2011 144382.99viii) MATERIAL DEVELOPMENT IN HUMAN RESOURCES/INDUSTRIAL RELATIONFRONT, INCLUDING NUMBER OF PEOPLE EMPLOYEDThe Company aims at providing motivation and growth opportunities for employees. It alsoencourages them and creates an environment for best utilisation of their skills in achieving theCompany’s objectives. Training and Development is the key word of HRD. The achievementduring the year under report was 1509 Executive and 2558 Non-executive trained man days.Industrial Relations situation remained peaceful throughout the year in all the establishmentsof the Company. Works Committees and Joint Plant and Shop Councils meet regularly andtheir discussions contribute towards improving industrial relations and resolving differences,if at all they arise.67
Page 3:
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 and 66: Corporate Governance (Contd.)(xx) R
Page 67: WeaknessCorporate Governance (Contd
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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