annual report - Jindal Group of Companies

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Chairman’s StatementD.P. JindalChairmanDear Shareholders,It gives me immense pleasure in presenting the resultsfor the year 2010-11.The year 2010-11 had been a steady year afterrecovery from the economic slow-down in the previousyears. The major economies in the world were showingimprovement. The steps taken by different countriesto recover from the meltdown had proven to be effectiveand the economic indicators were giving positivesignals to the world inspite of recent jitters on the debtfront particularly in U.S.A. and Europe.Looking into the Global energy arena, the crudewitnessed increasing demand to fulfill the growth indemand of petroleum products. The crude oil priceshave been quite volatile and were hovering betweenthe levels of $ 70-80 per barrel in August, 2010 to$ 115-125 per barrel in January, 2011. The increaseof almost 40% in crude oil prices significantly increasedthe revenues & profits for the Exploration & ProductionCompanies enabling them to invest more in exploitingthe reserves and enhance their risk taking capabilities.However, recent incident of BP oil disaster in Gulf ofMexico and the resultant catastrophic oil spill, affectingseveral coastal zones of U.S.A., and the subsequentsinking of Aban's rig off Venezuela coast, have impactedthe overall sentiment of the industry, particularly, indeep sea operations. All these incidents, once againhave highlighted the vagaries of oil exploration andthere is a renewed focus on operational safety. In fact,these incidents are going to become game changerfor the industry.In Jindal, our credo always is "Safe Operation" andwe do not spare anything to compromise our qualityof operations and safe work culture.As a precaution, we have revisited all our offshoreoperations and practices to further reinforce the 'safetyaudit' in our rig operations. We are happy to sharewith you that because of our continued focus, committedand dedicated operational crew, we have againachieved an "Incident Free" year, and look ahead withconfidence for maintaining incident-free operationaltrack record.In the Indian Oil & Gas market, the year was quite aneventful year with the bold decision taken by theGovernment to remove the subsidies in petrol. Theremoval of subsidy has enhanced the net realizationof the Oil & Gas companies during the period. The04
Upstream giant, Oil & Natural Gas Corporation(ONGC) has also been benefited with this move andis more strengthened financially with enhanced risktakingcapability. This move has also forced thedownstream PSUs like HPCL, BPCL & IOCL to forayinto E&P business with more aggression. In the years,it is expected that E&P investments are going to increaseconsiderably as demand has been growing withexcellent performance of Indian Economy in the pastfew years and new players are foraying in the IndianOil & Gas market.In the Indian Oil & Gas services business, the industryhas been maturing and demanding the latest technologyservices. The industry is also moving away from thetraditional business models and adopting the integratedbusiness models in the services business. Thesedevelopments have provided immense opportunitiesfor the Indian Oil & Gas services Industry to expandinto integrated services business.Also, the Indian Oil & Gas industry is expanding itsreach to more challenging environments like CoalBed Methane and Shale gas which were noteconomically and technically feasible in the past. Thiswould attract lot of new opportunities for theOil & Gas Service providers, like your Company, inthe Indian market in near future.In the year 2010-11, your Company has given excellentperformance in all of its business units, Rig Services,Directional Drilling Services & Mud Logging Services.The Company's all 5 rigs, Discovery I, Virtue I, NobleCharlie Yester, Noble Ed Holt & Noble George McLeodhave been operating efficiently without any lost timein operation. In the Directional Drilling Services unit,your company has been awarded 4 new long termcontracts with ONGC in the year 2010-11. TheDirectional Drilling Services unit is strategically focusingto the niche market of small & medium sized E&Pprivate players.Your Company is also looking into new opportunitiesfor integration in the changed business scenario ofIndian Oil & Gas services business. Our focus will beon enhancing the value of your Company and achievesustainable growth by integrating into the Oil & Gasservices business. We are committed to provide excellentservices to our valued customers with greater operatingefficiency, competitive price offerings and enhancedproductivity. We have been continuously focusing onimprovement of our systems & procedures for improvingthe customer satisfaction levels.As you have observed from the financial results, theCompany achieved significant growth during theyear 2010-11 and is committed to enhance the valueof its shareholders in the coming years. I look forwardto continued support, trust and participation of all inthe growth of the Company.I take this opportunity to thank all esteemed shareholdersand employees of the Company, our bankers, ourvaluable clients, suppliers and contractors for theirunstinted support and guidance for which I am deeplyobliged.Thank you,D.P. Jindal05
Page 3 and 4: Putting thingstogether in astrategi
Page 5: 03During the year, a few majorcontr
Page 9 and 10: any lost time incident clocking a r
Page 11 and 12: BOARD OF DIRECTORSD.P. JindalRaghav
Page 13 and 14: NOTES:1. A MEMBER ENTITLED TO ATTEN
Page 15 and 16: 10. In case of joint holders attend
Page 17 and 18: DIRECTORS' RESPONSIBILITY STATEMENT
Page 19 and 20: CORPORATE GOVERNANCE REPORTThe purs
Page 21 and 22: The broad terms of reference of Aud
Page 23 and 24: (II) Special Resolutions passed in
Page 25 and 26: Distribution of shareholding as on
Page 27 and 28: CERTIFICATE ON CORPORATE GOVERNANCE
Page 29 and 30: Unlike other parts of the world whe
Page 31 and 32: ANNEXURE TO THE AUDITORS' REPORT(As
Page 33 and 34: 18. According to the information an
Page 35 and 36: PROFIT & LOSS ACCOUNT FOR THE YEAR
Page 37 and 38: SCHEDULES FORMING PART OF THE FINAN
Page 39 and 40: SCHEDULE : 4 - FIXED ASSETS as at 3
Page 41 and 42: As at 31.03.2011As at 31.03.2010Sha
Page 43 and 44: NAME OF THE COMPANY NUMBER OF PURCH
Page 45 and 46: SCHEDULE : 6 - INVENTORIESAs At As
Page 47 and 48: Year Ended Year Ended31.03.2011 31.
Page 49 and 50: h. Revenue RecognitionRevenue is re
Page 51 and 52: B. NOTES ON ACCOUNTS1. Estimated am
Page 53 and 54: (c)Foreign Currency Exposure that a
Page 55 and 56: (v)Investment detailsParticulars(Am
Page 57 and 58:
8.6 In view of the Accounting Stand
Page 59 and 60:
9. Additional Information pursuant
Page 61 and 62:
JINDAL DRILLING & INDUSTRIES LIMITE
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annual report - Jindal Group of Companies

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