bpsl annual report 2014

ANNEXURE-A TO THE DIRECTORS REPORT FOR THE YEAR ENDED 31ST MARCH 2014

INFORMATION AS PER SECTION 217 (2A) OF THE COMPANIES ACT, 1956 READ WITH THE COMPANIES (PARTICULARS OF EMPLOYEES) RULES, 1975 AND FORMING PART OF THE DIRECTORS REPORT FOR THE YEAR ENDED 31ST MARCH 2014.

1. Employed throughout the year and were in receipt of remuneration of not less than ` 60,00,000 per annum.

S. No

Name Designation Remuneration (` in Lacs)

Age(Years)

Experience(Years)

Date of commencement of employment

Nature of Duties Last employment & designation held

1. Mr. Sanjay Singal

Chairman & Managing Director

72.00 Graduate 54 34 30.06.2003 (Re-appointed w.e.f. 30.06.2013)

Planning, policy decision & Management of day to day working

Bhushan Steel LtdManagingDirector

2. Employed for the part of the year and were in receipt of remuneration aggregating to not less than ` 5,00,000 per month.

S. No

Name Designation Remuneration (` in Lacs)

Age (Years)

Experience (Years)

Date of commencement of employment

Nature of Duties Last employment & designation held

1. Mr. A. K. Khushu Dy Managing Director

34.00 B. Tech 63 39 07.09.2014 Project Implementation and day to day working

Allied Strips Ltd Managing Director

Notes:

1. The condition of employment of Mr. Sanjay Singal and Mr. A. K. Khushu is/was contractual and the contract of employment was approved by the members of the Company.

2. Remuneration as shown includes salary, allowances, medical expenses, house rent, taxable value of perquisites but excludes gratuity provision.

22

ANNEXURE- B TO THE DIRECTORS REPORT FOR THE YEAR ENDED 31ST MARCH 2014

INFORMATION AS PER SECTION 217 (1) (e) READ WITH COMPANIES (DISCLOSURE OF PARTICULARS IN THE REPORT OF BOARD OF DIRECTORS) RULES, 1988 AND FORMING PART OF THE DIRECTORS REPORT FOR THE YEAR ENDED 31ST MARCH 2014.

CONSERVATION OF ENERGY:

(a, b & c) Your Company has always been conscious of the need to conserve energy and has always attempted various measures for the same wherever possible to achieve reduction in the cost of production. The Company has been undertaking Energy Audit at Kolkata Plant and adopted innovative methods resulted into saving of energy consumption. Company has commissioned Captive Power Plant of 506 MW at its Integrated Steel Plant in Odisha and is open for suggestions of experts in the areas where conservation of energy is possible.

(d) The details regarding present energy consumption including captive generation are furnished as per Form A of the Annexure to the Rules.

FORM A

A. POWER & FUEL CONSUMPTION2013-14 2012-13

1. Electricity(a) Purchased

Units (No. in Lacs) * 3,593.22 4,151.77 Total Amount (` In Lacs) 24,402.87 27,600.56

Average rate per unit (`) 6.79 6.65 (b) Own Generation (i) Through Diesel Units (No. in Lacs) 155.66 161.90

Qty (Ltrs in Lacs) 43.22 44.72 Total Amount (` In Lacs) 2,219.70 1,852.59

Average rate per unit (`) 14.26 11.44 (ii) Through Steam Turbine Units Generated Kwh (No in Lacs)** 26,025.81 21,602.97 Coal Quantity (MT in Lacs) 27.08 25.15

Total Amount (` in Lacs) 26,031.58 30,098.31Average rate per MT (`) 961.32 1,196.95Average rate (` per unit) 1.00 1.39

2. Fuel OilQty (Ltrs in Lacs) 219.03 181.46

Total Amount (` in Lacs) 10,216.25 6,647.98 Average rate per litre (`) 46.64 36.64

3. LPG Propane GasQty (MT) 52,295.77 24,914.51

Total Amount (` in Lacs) 32,064.67 13,465.74Average rate per MT (` in Lacs) 0.61 0.54

B. CONSUMPTION PER UNIT OF PRODUCTION Production (MTs)*** 91,31,314 72,34,764

Electricity (Unit/MT) 303.99 339.58 Fuel Oil (Ltrs/MT) 2.40 2.51 LPG (Kg./MT) 5.73 3.44 Captive use of electric units (Nos in Lacs) 24,327.22 20,721.12

Capitalized (No. of units in Lacs) 317.47 467.08 Total Amount capitalized (` in Lacs) 2,110.66 3,046.39

* Includes 317.47 Lac Units (Previous year 467.08 Lac units) for ` 2,110.66 Lac (Previous year ` 3,046.39 Lac) capitalized.** Out of generated (Kwh) 26,025.80 Lac Units (Previous year 21,602.97 Lac Units), 1,698.59 lac Units (Previous year 881.85 Lac Units) sold.*** Includes production for capitalized/packing and captive use 68,58,478 MT (Previous year 54,02,629 MT).

23

FORM BRESEARCH & DEVELOPMENT (R & D)

1. : At Odisha Plant (CSP unit):-

develop such kind of steel through coal based DRI route.

Development of high strength low alloy steel in thinner section for automobile application.

Development of hot rolled bands for high strength low alloy CRCA application.

Development of Deep drawing hot rolled product through coal based DRI route.

At Kolkata Plant :

Successfully implemented two electrical energy saving projects based on the energy audit reports and observations. This has been done through technological up-gradation of centralized lighting system.

Successfully developed BLACK CR material with in-house R&D through process innovations. This has wide applications in export market.

2. : At Odisha Plant:

Major energy saving measures was taken up during this year, which has given substantial savings. Details are as follows:

DC drives of DRI Kiln Cooler of Kiln 1, 2, 3&4 were replaced with energy

achieved.

of Instrument and Service cum Process Air of all units of the total Plant. Which has lead to the optimum loading of Compressors and switching of other Compressors. Power savings equivalent to three Compressors i.e., 3 630=1890KW/H was achieved.

AT Kolkata Plant:

102200 Units annually.

The new product developed has been well accepted in the market of Africa and has resulted in new avenue of export growth. Repeat orders has been executed for various African markets. Company had already planned to setup one dedicated unit at our Odisha plant.

3. Future Plan of action :

products at one place. Company envisages expansion of market with Phase-

4. Expenditure on R&D (` in lacs) Capital/Recurring : Recurring. Not segregated

TECHNOLOGY ABSORPTION, ADAPTATION & INNOVATION:

1. Efforts in brief made towards technology, absorption, adaptation and innovation

: Company has adopted following technologies for its plant at Odisha:-

Lurgi Technology for Sponge iron production.

SSIT-CHINA for Blast furnace.

TECHINT-ITALY technology for steel making.

SMS-SIEMAG for six stand hot strip mill.

Danielli, Italy for Wire & Rod Mill of alloy grades.

AJAX-TOCCO, USA make High Frequency Furnace for Acrylic coating in Color Coating Line.

CMI, Belgium Technology Cold for Rolling Mills.

24

ABB, Sweden make Flatness Control System for Cold Rolling Mills.

OUTOTEC, Germany Technology Pellet Plant.

Bradley, UK make Coke and Bentonite for Grinding Mills

Metso Minerals, Sweden Technology & Allminerals , USA Technology for Iron Ore

LINDE, Germany Technology for Oxygen Plant.

The market share in narrow width segment increased as a result of capacity enhancement.

2.improvement, cost reduction, product development, import substitution etc.

:

Recovery of waste heat from Kiln of gas producing about 11MW per kiln.

combustion boiler.

as a fuel.

Cost of production shall be reduced due to its backward integrated facilities.

Reliability of operation has increased considerably at Kolkata Unit.

development.

3.furnished.

a. Technology Imported : The basic engineering of CSP Plant for HR Coil has been given by SMS Siemag, Germany.

as for requirement of export market have been carried out indigenously successfully.

b. Year of Import : Technology from SMS Siemag, Germany imported in year 2005-06

c. Has Technology been fully absorbed : Technology has been fully absorbed

d. If not fully absorbed, areas where this has not taken place reason thereof and future plan of action.

: Not Applicable

4. FOREIGN EXCHANGE EARNINGS AND OUTGO

1. Activities relating to exports, initiatives taken to increase exports, development of new export market for products and services and export plan.

: Companys products in the international market conforming to stringent international standards and quality has wide acceptance.

2. Total Foreign Exchange used and earned : Used: ` 1,962.62 crore

Earned: ` 2,265.69 crore

25

26

ANNEXURE - C TO THE DIRECTORS REPORT FOR THE YEAR ENDED 31ST MARCH 2014

REPORT ON CORPORATE GOVERNANCE

1. VISION

A focused mindset with continuous learning aimed to have completely integrated operations for self reliance and to be the global leader in the business.

2. MISSION

to compete with self, protect environment and to explore all possible means for unmatched growth.

3. COMPANYS PHILOSOPHY ON CODE OF GOVERNANCE:

Companys guiding principles are focused to achieve highest standard of Corporate Governance and has therefore Company believes in adopting the best practices in the area of Corporate Governance. Board is accountable to all the stakeholders for good governance to ensure transparency in its operations, make appropriate disclosure and enhance stakeholders value by value addition and customer satisfaction coupled with high standard of quality products without compromising anyway in compliance with laws and regulations.

4. BOARD OF DIRECTORS

has Executive Chairman. Guidelines issued by the SEBI for Composition of Board of Directors, statutorily not applicable, have been followed and Composition of Board of Directors is as follows:

Sr. No. Category Name of the Director 1. Executive Directors Mr. Sanjay Singal

Mrs. Aarti SingalMr. R. P. GoyalMr. R. N. Yadav

Whole Time Director but continue to be a Director)2. NonExecutive and Independent Directors Mr. Anil S Supanekar

Mr. R. D. Batra

Mr. Dinesh Kumar Behal3. Non Executive Nominee Directors Mr. S. N. Baheti(Nominee IDBI Bank Ltd)

Mr. Jimmy Mahtani (Investors Nominee Director)4. Non Executive Professional Director

None of the Directors on the Board is a Member of more than 10 committees and Chairman of more than 5 committees across all the Company/ies in which he is a Director.

27

Attendance of each Director at the Board Meetings, last Annual General Meeting and number of other Directorship and Chairmanship/Membership of Committee in various Companies.

S. No.

Name of Director Attendance Particulars No. of Other Directorship and Committee Member/Chairmanship

No. of Board Meetings held

No of BoardMeetings attended

Attendance at last AGM

Other Directorship

Committee Member

Committee Chairmanship

1 Mr. Sanjay Singal 4 3 Yes 6 4 4

2 Mrs.Aarti Singal 4 1 No 7 2 1

3 Mr. S. N. Baheti (Nominee of IDBI) appointed w.e.f 08.11.2013

4 2 No 2 -- --

4 Mr. Anil S. Supanekar 4 4 No -- 2 1

5 Mr. Jimmy Mahtani 4 Nil No 7 -- --

6 Mr. R. P. Goyal 4 2 Yes 5 7 1

7 4 3 No 1 4 --

8 Mr. R. N. Yadav 4 Nil No -- 2 --

9 Mr. R. D. Batra 4 3 No -- 6 1

10 Mr. Dinesh Kumar Behal 4 4 Yes 1 4 1

11. Mr. Melwyn Rego Withdrawal of Nomination w.e.f 30.08.2013

4 Nil No 1 -- --

12 Mr. A. K. KhushuResigned w.e.f 20.05.2014

4 1 No -- -- --

Number and the dates of Board Meetings

During the year 2013-2014 four (04) Board Meetings were held on 24th June 2013, 7th September 2013, 28th December 2013 and 29th March 2014.

Dates for Board Meetings are decided in advance and communicated to the Directors in writing. The agenda alongwith Explanatory notes are sent to the Directors in advance.

5. AUDIT COMMITTEE

Audit Committee of Directors presently consists four Directors as Members namely (i) Mr. Dinesh Kumar Behal (ii) Mr. Anil S. Supanekar, (iii) Mr. R. P. Goyal and (iv) Mr. R. D. Batra. Mr. Dinesh Kumar Behal is the Chairman of the Audit Committee, who is an independent Director

Section 292A of Companies Act, 1956). Members of the Audit Committee possess accounting exposure.

The terms of reference of the Committee has been amended by the Board of Directors conform to the provisions of Section 292 A of the Companies Act, 1956 as detailed hereunder: -

dependability and accuracy.

change in the accounting policies and practices and its effect on Companys working, (ii) major accounting entries based on exercise

(v) the going concern assumption, (vi) compliance with all applicable accounting standards and (vii) compliance with legal requirements

d. Any related party transactions i.e. transactions of the Company of material nature with promoters or the management, their subsidiaries

e To look into the reasons for substantial defaults in the payments to the depositors, debenture holders, shareholders (in case of non payment of declared dividends) and creditors.

During the year, the Committee held four meetings on 24th June 2013, 7th September 2013, 28th December 2013 and 29th March 2014.

28

6. COMMITTEE OF DIRECTORS ON BORROWINGS

Committee of Board of Directors on Borrowings presently consists of four Directors namely (i) Mr. Sanjay Singal, (ii) Mrs Aarti Singal (iii) Mr. R. P. Goyal and (iv) Mr. R. D. Batra. Mr. Sanjay Singal is the Chairman of the Committee.

30 Nos. of Meetings of Committee of Board of Directors on Borrowings were held during the year 2013-2014 on 30.04.2013, 16.05.2013, 03.06.2013, 10.06.2013, 18.06.2013, 22.06.2013, 26.06.2013, 28.06.2013, 02.07.2013, 09.07.2013, 19.07.2013, 23.07.2013, 30.07.2013, 05.08.2013, 21.09.2013, 25.09.2013, 21.10.2013, 25.10.2013, 01.11.2013, 07.11.2013, 19.11.2013, 26.11.2013, 07.12.2013, 29.01.2014, 13.02.2014, 19.02.2014, 27.02.2014, 07.03.2014, 10.03.2014 and 28.03.2014

7. (a) SHARE ALLOTMENT & TRANSFER COMMITTEE

The Investors Grievances, Securities Allotment & Transfer Committee has been renamed as Share Allotment and Transfer Committee

Company. Independent Director Mr. R. D. Batra is the Chairman of the Committee. The Committee has been constituted inter alia

measures to improve investors grievances. During the year under report, seven meetings of the Committee was held. Mr R.K. Gupta,

(b) SHAREHOLDERS/INVESTORS GRIEVANCE COMMITTEE

Company has constituted Shareholders/Investors Grievance Committee comprises of (i) Mrs. Aarti Singal (ii) Mr. R. P. Goyal and (iii) Mr. Dinesh Kumar Behal as members of the Committee. Mrs. Aarti Singal is the Chairperson of the Committee.

8. PUBLIC ISSUE COMMITTEE

The Committee has been constituted and authorized for taking the decisions pertaining inter-alia to public offer, issue & allotment of securities including debt instruments listed on Stock Exchanges. During the year under report, no meeting of the Committee was held. The Board has

9. REMUNERATION COMMITTEE

Committee comprises of (i) Mr. Anil S. Supanekar, (ii) Mr. R. D. Batra and (iii) Mr. Dinesh Kumar Behal as Members. Mr. Anil S. Supanekar is the Chairman of the Committee. One meeting of the Committee was held during the year under report.

10. PROJECT MANAGEMENT COMMITTEE

The Committee has been reconstituted for monitoring the progress of the Projects of the Company being set up at Odisha. The committee comprises of (i) Mr. Sanjay Singal, (ii) Mr. R.N.Yadav, (iii) Mr. R.N.Pattajoshi and (iv) Mr. Arun Agarwal as members.

11. STRATEGIC INVESTMENT COMMITTEE

The Committee has been constituted for making strategic investments interalia for acquiring any venture having raw material or technology

Goyal as members of the Committee. Mr. Sanjay Singal is the Chairman of the Committee. During the year under report, no meeting of the Committee was held during the year.

12. GENERAL BODY MEETING:

(a) Location and time for the last three (03) Annual General Meetings (AGMs):

Year Location Date Time

2010-11 4th Floor, Tolstoy House, 15-17, Tolstoy Marg, Connaught Place, New Delhi

17.09.2011 2.30 P. M.


17.09.2012 2.30 P. M.


30.09.2013 2.30 P.M

(b) No Extra Ordinary General Meeting of the Shareholders was held during the year under report.

(c) Passing of Resolution by Shareholders through Postal Ballot is not presently applicable to the Company.

29

interest of the Company at large.

stated in annual accounts.

(b) Detail of non-compliance by the Company, penalties and strictures imposed on the Company by any statutory authority, on any matter related to provisions of Companies Act, 1956, during the last three years.

None

14. MEANS OF COMMUNICATION:

Annual Report is circulated to the Shareholders.

Company has its own website. www.bhushanpowersteel.com

15. GENERAL SHAREHOLDERS INFORMATION:

(i) Financial Calendar - 1st April to 31st March

(ii) Dividend/Interim Dividend Payment Date: Within 30 days from the date of declaration.

(iii) Share Allotment & Transfer Committee: Share Allotment & Transfer Committee inter-alia has its terms of reference for approval of transfer and transmission of securities, issue of duplicate shares, allotment of shares and issue of shares after consolidation or sub-division.

(iv) Dematerialisation Mode (Demat). Company has electronic connectivity with both the depositories namely NSDL and CDSL to extend facility to its shareholders to hold shares in electronic mode. The Companys ISIN is INE 347F01016. Some of the shareholders have availed the demat facility.

(vi) Registrar for Connectivity: Link Intime India Pvt Ltd, A-40, 2nd Floor, Naraina Industrial Area, Phase-II, Near Batra Banquets, Naraina, New Delhi-110 028 has been appointed as Registrar for connectivity with NSDL & CDSL.

(vii) Distribution of Shareholding as on 31.03.2014 :

Sr. Category %age

1. Individuals Promoters 11.65

2. Body Corporate Promoters 82.82

3 FII 5.53

Total 100.00

(viii) Location of Plants:

a. Plot No. 3, 71, 83, 141-142 at Industrial Area, Phase-1, Chandigarh

c. NH-2, Bangihatti, Mallickpara (Hooghly) Serampore, Kolkata, West Bengal

e. Plot No. 55, KIADB Industrial Area, Chintamani Road, Hoskote Taluk, Bangalore (Karnataka)

(ix) Customer Service Centre

and OEMs.

a. Aurangabad, Pune, Nasik (Maharashtra)

b. Pantnagar (Uttrakhand)

c. Hosur (Tamil Nadu)

d. Ludhiana (Punjab)

e. Manesar, Faridabad (Haryana)

30

MANAGEMENT DISCUSSION & ANALYSIS

INDUSTRY OVERVIEW GLOBAL SCENARIO

Change in the Government at the Centre has wired message of growth in the manufacturing sector which was slowed down over the years. Govt has put its priority to bring the Industry on path of growth and generate employment. Steel, Power and Infrastructure industries are expecting the policies to be growth oriented. The present GDP is 4.7% p.a. in 2013-14 is expected to grow upto 5.5 - 5.6% p.a. in 2014-2015. Reserve Bank of

to be growth oriented where the Government is steering for more mineable reserve to the industry. Govt. is also giving a thought to amend the existing MMDRA to facilitate the quick disposal and smooth operation of mines. Simultaneously the Land Acquisition Act is also on the card of the Govt. to consider and amend in the larger interest of the industry.

Govt. has been striving for strengthening the manufacturing sector for generating more employment. Production target of Steel under National Steel Policy 2005 has also been set.

Globally the EU emerged out of its longest recession, the recovery in the USA gained ground (despite shutdown, tapering et al) and manufacturing bounced back in the developed block. But China, despite a strong 7.7% GDP growth in 2013 remained in slowdown mode, a major concern for the global steel fraternity. With betterment of overall economic conditions at home and globally widely projected in FY 2015, 2013-14 proved to be another year when the Indian Steel Industry was at its resilient self.

The Global apparent steel use at 1481 MT in 2013 and projected at 1527 MT in 2014 is up by 3.1% and Chinese apparent steel use at 700 MT in 2013 and projected at 721 MT in 2014 increased by 3%.

Consumer and business spending in US is rising. Housing construction, auto sales and ISM manufacturing index has marginally moved. Further the general feeling is that the steel industry will turn around in 2014-15.

Latest business environment ranking by the economist show india at 61st position with China at 49th , Brazil at 41st and Russia at 59th position,

infrastructure investment in India is beyond the means of the government , an enabling environment for the private corporate sector and FDI capital

OVERVIEW OF INDIAN STEEL INDUSTRY

Indian steel industry however recorded a growth pattern. In 2013-14, production of crude steel was at 81.54 MT, an increase of 4%. Crude steel capacity reached 99.57 MT a growth of 2.6%. Production for sale of sponge iron was 14.97 MT a growth of 4.5%. Pig iron production for sale was

The consumption pattern marginally increased with total consumption of 73.89 MT up by 0.6%. However abysmally low per capita consumption of steel of 59 kg in India as compared to China 427 kg and world average of 206 kg strengthens The National Steel Policy has set up the target of 100 million tons of steel production by 2018 so as to increase the consumption.

Indian steel manufacturing market has been paying price for policy logjam. The new Govt has emphasis infrastructure growth, including the rail and

scenario that was instrumental in pulling down entrepreneurial investment institutions, industrial growth and GDP.

Public Sector plants produced 16.78 MT while the rest and dominant contribution was of the private sector with share of 79% of total crude steel

Maintaining rank of the 4th largest global crude steel producer in 2013, India has further made a mark globally in the production of sponge iron production of 14.97 MT a growth of 4.5% over last year. Production of pig iron for sale stood at 7.29 MT a growth of 6.1% compared to last year,

with the non alloy steel accounting for 93% share of total. Flat products with 52% share lead the production for sale while the rest was the share of

8.5 MT up by 12%, GP / GC, 6.9 MT up by 11% and structural was 6.6 MT recording increase by 12% over last year.

OVERVIEW OF INDIAN POWER SECTOR

The total installed capacity of Indian power sector is app 2.12 lakh MW out of which fuel based power installed capacity is about 1.42 lakh MW. Hydro (Renewable) capacity is 0.39 lakh MW, nuclear based power capacity is 0.05 lakh MW. Govt has initialed several policies to promote and garner investments in power sector viz National Electricity policy, Ultra Mega Power Project Policy, Mega Power Policy CERC Policy, Tariff Policy etc. National Electricity Policy in fact stipulates power for all and annual per capital consumption of electricity to rise to 1000 units by 2012.

Waste heat recovery process has been recognized the competitive generation cost of power. In the Indian scenario, electricity sector is predominantly controlled by Public Sector Undertakings of Govt. of India in generation of electricity. Nuclear based power generation in the near future in the

31

country shall bridge the gap of generation and demand of power sector. State level Corporations are also involved in the generation of electricity. The intra state distribution is managed by the State Electricity Boards (SEBs) and private companies. Power Grid Corporation of India is responsible for the inter-state transmission of electricity and the development of national grid.

OPPORTUNITIES AND THREATS

Opportunities

Threats

COMPANYS PROSPECTS

products i.e. sponge iron, pig iron/hot metal, Steel Billets, HR Coils and secondary steel products CR Coils/Sheets, Galvanized Plain/Corrugated Sheets, Galvalume Sheets, Colour Coated Sheets, Black Pipes, GI Pipes, Precision Tubes, Cable Tapes and Special Alloy Steel, Bars, Wire Rod,

State of Odisha has recommended for grant of mining lease for 224 million tons of iron ore reserves in Thakurani block and Sundergarh Keonjhar block.

Mining of Companys coal blocks at Jamkhani and Bijhan and generation of additional power will further reduce the cost of inputs and saving in cost

further enhancing the self-reliance.

Allocation of Patal (E) coal block and Chatuburu Iron Ore Mines in the State of Jharkhand to the Company for its proposed Integrated Steel & Power Project will further make the Company truly integrated. 1,000 MW Power project in the State of Chhattisgarh is envisaged for uninterrupted supply of Power.

FINANCIAL OPERATIONAL PERFORMANCE

Term Lending

During the year under review, Company has availed Term Loan of Rs.186 Crore, out of sanctioned Rupee Term Loan of Rs. 3,250 Crore, ECA of

During the year under review, Company has availed ECA of Rs.132 Crore out of sanctioned ECA of Rs. 1,560 Crore from KFW IPEX GmbH

During the year under review, the company has received Long Term Loan of Rs. 4698 Crore. Further, the Company has also availed ECBs of Rs.943 Crore for the replacement of its existing ECBs and RTLs.

Working Capital

Your company enjoyed working capital facilities of Rs. 7,700 crore (Fund Based Rs. 4,000 Crore and Non Fund Based Rs. 3,700 Crore) from consortium of banks lead by Punjab National Bank.

Credit Rating

The credit rating agencies Fitch Ratings India (P) Limited and Credit Analysis & Research Limited (CARE Ratings) has done the rating of the company. The rating assigned by the credit rating agencies are as under:-

Fitch Ratings India (P) Limited

The Fitch Ratings has assigned the Long Term rating of A-(ind). Further it has assigned the rating of F2+(ind) for short term bank loans.

Credit Analysis & Research Limited (CARE Ratings)

CARE has assigned the Long Term rating of CARE A- (Single A Minus). Further, it has assigned CARE A1(A one) rating to short term non fund base facilities and STD/CP/NCD (carved out of sanctioned working capital limits) of your company and CARE A2+ (A two plus) rating to short term unsecured loan and STD/CP/NCD (standalone).

INTERNAL CONTROL SYSTEM

The Company has an adequate system of internal control implemented by management having regard to size and nature of business activities of

exercise is carried out across all locations of the Company. This ensures the control and safeguard of the Companys assets against loss through

review the progress on recommendation, if any, made.

and cost control

CONTINGENT LIABILITIES

STATUTORY COMPLIANCE

Company has been complying with all applicable statutory obligations, a declaration of compliance of statutory and legal obligations of various applicable statutes is made by Whole Time Director and Company Secretary at each Board Meeting

QUALITY

Greater emphasis is laid down on total customer satisfaction, continuous up-gradation of technology and customer oriented marketing that represents the total commitment to set higher standards for quality assurance.

SEGMENT REPORTING

The Company is engaged in iron & steel business, which in the context of Accounting Standard 17 is considered only business segment.

32

Independent Auditors ReportTO THE MEMBERS OF BHUSHAN POWER & STEEL LIMITED

1) Report on the Financial Statements

31stpolicies and other explanatory information.

2) Managements Responsibility for the Financial Statements

referred to in Section 211(3C) of the Companies Act, 1956 (the Act), read with general circular 15/2013 dated 13th September, 2013 of the ministry of Corporate affairs in the respect of section 133 of the companies Act, 2013. This responsibility includes the design, implementation

due to fraud or error.3) Auditors Responsibility

the Standards on Auditing issued by the Institute of Chartered Accountants of India. Those Standards require that we comply with ethical

misstatement.

whether due to fraud or error. In making those risk assessments, the auditor considers internal controls relevant to the Companys preparation

purpose of expressing an opinion on the effectiveness of the entities internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by management, as well as evaluating the overall

4) Opinion

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

5) Report on Other Legal and Regulatory Matters (i) As required by the Companies (Auditors Report) Order, 2003 (the Order) issued by the Central Government of India in terms of

(ii) As required by Section 227(3) of the Act, 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

b) In our opinion, proper books of account as required by law have been kept by the Company so far as appears from our

Standards referred to in sub-section (3C) of section 211 of the Companies Act, 1956, read with general circular 15/2013 dated 13th

e) On the basis of the written representation received from the directors as on 31st March, 2014 and taken on record by the Board st March, 2014 from being appointed as a director in terms of clause

FOR MEHRA GOEL & CO. Chartered Accountants Firm Registration No.: 000517N Sd/- Place : New Delhi R.K. MEHRA Date : 7th July, 2014 PARTNER M.NO.: 6102

33

Annexure(Referred to in paragraph 3 of our report of even date)

concern status of the company.ii) In our opinion and according to the information and explanations given to us, the inventories of the Company in its possession have been

31st

reasonable and adequate in relation to the size of the Company and the nature of its business. The Company is maintaining proper records of inventories. As explained to us, no material discrepancies were noticed on such physical

iii) In our opinion and according to the information and explanations given to us, the Company has not taken/granted any loans, secured or

the year.iv) In our opinion and according to the information and explanations given to us, there are adequate internal control procedures commensurate

services. During the course of our audit, we have not observed any continuing failure to correct major weakness in such internal controls. v) In respect of contracts or arrangements entered in the register maintained in pursuance of section 301 of the Companies Act, 1956, to the

best of our knowledge and belief and according to the information and explanations given to us:- a) The particular of contracts or arrangements referred to Section 301 that needed to be entered in the register maintained under the

said Section have been so entered. b) Where each of such transaction is in excess of ` 5 Lacs in respect of any party, the transaction have been made at a price which are

prima facie reasonable having regard to the prevailing market prices at the relevant time.vi) To the best of our knowledge, the Company has not accepted any deposits covered under section 58A and 58AA or any other relevant

provisions of the Companies Act, 1956.vii) To the best of our knowledge and explanations given to us, the Company has an internal audit system commensurate with its size and nature

of its business. viii) The Central Government has under clause (d) of sub section (1) of Section 209 of the Companies Act, 1956 prescribed maintenance of Cost

Records for the Company. On the basis of records produced to us, we are of the opinion that, prima facie, such accounts and records have been made and maintained by the Company. However, we have not, nor we are required, to carry out any detailed examination of such accounts and records.

ix) According to the information and explanations given to us, in respect of statutory dues:

a) The Company is generally regular in depositing undisputed statutory dues including Provident Fund, Investor Education and Protection fund, Employee State Insurance, Income Tax, Sales Tax, Wealth Tax, Service Tax, Custom Duty, Excise Duty, Cess and any other statutory dues with the appropriate authorities.

b) There were no undisputed amounts payable in respect of Income tax , Wealth tax , Service tax , Excise Duty,Cess, and other material statutory dues in arrears as at 31st March,2014 for a period of more than six months from the date they become payable.

c) The disputed statutory dues aggregating Rs. 25,017.18 Lacs (net of paid under protest) that have not been deposited on account of disputed matters pending before appropriate authorities are as under:

Nature of the statute Nature of dues Net of amount paid (` in Lacs)

Period to which amount related

Forum where dispute is pending

Central Sales Tax Act, 1956 and Sales Tax Act of various states

Demand 179.27 2003-04 & 2005-06

Sales Tax Tribunal (Cuttack)

Demand 487.43 2006-07 High Court ,CuttackDemand 56.57 2012-13 Add.Commissioner Sales Tax (Sambalpur)Demand 11.70 2006-07 to

2008-09D.C.S.T. ,Berhampur

Demand 113.26 2010-11 to 2011-12

D.C.S.T.(Appeal) Sambalpur

Demand 79.95 2006-07, 2008-09 & 2009-10

Add.Commissioner Sales Tax (Cuttack)

Demand 5790.58 2006-07 to 2007-08, 2009-10 & 2010-11

Addl. Commissioner, Commercial Sales Tax, West Bengal

34

Nature of the statute Nature of dues Net of amount paid (` in Lacs)

Period to which amount related

Forum where dispute is pending

Demand 130.49 2006-07revisional board.

Penalty 0.66 2009-10 E.T.O. (M.W.), BelongiPenalty 13.21 2007-08 &

2013-14D.E.T.C (Patiala)

Penalty 1.35 2007-08 A.E.T.C (M.W) PunjabDemand 1260.43 2006-07 to

2009-10Punjab & Haryana High Court, Chandigarh

Demand 10.18 2005-06 to 2006-07

Joint Commissioner, Pune

Penalty 6.13 2012-13 Appellate Authority, IndoreOrissa Entry Tax Act Additional

Demand 516.98 2003-04 to

2005-06High Court, Delhi

Central Excise Act,1944 Demand 13791.26 2000-01, 2003-04 & 2007-08 to 2011-12

CESTAT, Kolkata

Service Tax Service Tax 10.93 2005-06 to 2009-10

CESTAT, Kolkata

Income tax Demand 2526.48 1998-99 to 2000-01 & 2003-04 to 2006-07

Punjab & Haryana High Court, Chandigarh

Demand 30.32 2003-04 Income tax Appellate Tribunal

xi) In our opinion, the company has not defaulted in repayment of dues to Financial Institutions or Banks or Debenture holders.

Company has not granted any loans and advances on the basis of security by way of pledge of shares, debentures and other securities.

xiv) To the best of our knowledge and according to information and explanations given to us, the Company is not dealing or trading in shares, securities and other investments. However, surplus funds are temporarily kept in short term securities in the name of the Company.

xv) To the best of our knowledge and according to the information and explanations given to us, the Company has not given any guarantee for loans taken by others from Banks/ Financial Institutions.

xvi) To the best of our knowledge and according to the information and explanations given to us, the term loans were applied for the purpose for which the loans were obtained.

xvii) In our opinion and according to the information and explanations given to us and on the overall examination of balance sheet, we report that no funds raised on short term basis have been used during the year for long term investments. However, sometimes due to pending disbursement of long term loans, short term available loans have been temporarily utilised for long term purposes.

xviii) According to the information and explanations given to us, the Company has made preferential allotment of cumulative compulsory convertible preference shares to parties and companies covered in the Register maintained under section 301 of the Companies Act, 1956. In our opinion, and according to the information and explanations given to us, the price, at which preference shares have been issued is not prejudicial to the interest of the Company.

xix) According to the information and explanations given to us, the company has not issued any debentures during the year.xx) According to the information and explanations given to us, the Company has not raised any money by Public Issue during the

year.xxi) Based upon the audit procedure performed and information and explanations given by the management, we report that no

fraud on or by the Company has been noticed or reported during the year.

FOR MEHRA GOEL & CO. Chartered Accountants Firm Registration No.: 000517N

Sd/-Place : New Delhi R.K. MEHRA Date : 7th July, 2014 PARTNER M.NO.: 6102

35

36

Balance SheetAs at 31st March, 2014

As per our report of even date attached

FOR MEHRA GOEL & CO. Sd/- Sd/-Chartered Accountants (SANJAY SINGAL) (R. P. GOYAL)Firm Registration No. : 000517N CHAIRMAN & MANAGING DIRECTOR WHOLE TIME DIRECTOR

Sd/- Sd/- Sd/-(R.K. MEHRA) (ARUN K. AGRAWAL) (AMARJEET SHARMA)PARTNER CHIEF FINANCIAL OFFICER M. NO.: 6102

Sd/-Place : New Delhi (R.K. GUPTA)Date : 07th July, 2014 PRESIDENT & COMPANY SECRETARY

(` in Lacs)

NOTE 31.03.2014 31.03.2013

I. EQUITY AND LIABILITIES(1) Shareholders Funds(a) Share Capital 2 23,664.66 20,133.37(b) Reserves and Surplus 3 7,87,862.54 6,07,224.50

8,11,527.20 6,27,357.87(2) Non Current Liabilities(a) Long Term Borrowings 4 22,40,883.92 17,99,710.13(b) Deferred Tax Liabilities (Net) 5 1,40,083.09 1,10,083.09(c) Other Long Term Liabilities 6 1,18,827.04 2,06,616.44(d) Long Term Provisions 7 2,871.61 2,834.78

25,02,665.66 21,19,244.44(3) Current Liabilities(a) Short Term Borrowings 8 4,98,542.40 4,86,033.14(b) Trade Payables 9 1,34,693.35 91,191.09(c) Other Current Liabilities 10 2,45,352.18 2,29,117.99(d) Short Term Provisions 11 7,335.93 2,719.83

8,85,923.86 8,09,062.05

TOTAL 42,00,116.72 35,55,664.36II. ASSETS

(1) Non Current Assets(a) Fixed Assets 12

(i) Tangible Assets 22,98,168.77 13,74,227.03(ii) Intangible Assets 1,802.10 114.62(iii) Capital Work In Progress 10,57,831.41 14,19,398.16(iv) Intangible Assets Under Development - 1,493.44

33,57,802.28 27,95,233.25(b) Non-Current Investment 13 12,206.96 12,206.96(c) Long-Term Loans and Advances 14 1,60,727.54 1,13,163.63(d) Other Non-Current Assets 15 1,976.55 3,379.30

1,74,911.05 1,28,749.89(2) Current Assets(a) Current Investment 16 949.09 2,122.06(b) Inventories 17 3,18,211.29 1,99,271.45(c) Trade Receivables 18 1,62,436.69 1,71,840.61(d) Cash & Bank Balances 19 17,604.26 73,365.32(e) Short-Term Loans & Advances 20 1,68,105.30 1,85,081.78(f) Other Current Assets 21 96.76 -

6,67,403.39 6,31,681.22

TOTAL 42,00,116.72 35,55,664.36

1Notes forming part of Accounts 2 to 45

37





st March, 2014

(` in Lacs)

NOTE 31.03.2014 31.03.2013

I. REVENUE FROM OPERATIONS

Sale of Products 11,08,899.63 9,34,300.65

Other Operating Income 19,970.12 17,446.54

Gross Revenue From Operations 22 11,28,869.75 9,51,747.19

Less: Excise Duty 91,033.60 84,771.06

Net Revenue From Operations 10,37,836.15 8,66,976.13

II. OTHER INCOME 23 318.51 526.98

III. TOTAL REVENUE (I + II) 10,38,154.66 8,67,503.11

IV. EXPENSES

Cost of Raw Materials Consumed 24 4,65,069.60 4,29,851.78

Purchases of Traded Stock 33,238.10 29,165.64

Change in Inventories of Finished Goods, Work-in-progress and Stock-in-Trade

25 (353.23) (26,879.22)

26 27,521.88 22,354.17

Finance Costs 27 1,43,802.89 1,08,165.37

Depreciation and Amortization Expense 12 87,838.27 74,655.12

Other Expenses 28 1,87,488.27 1,42,497.77

Total Expenses 9,44,605.78 7,79,810.63

V. PROFIT BEFORE TAX (III-IV) 93,548.88 87,692.48

VI. TAX EXPENSE :

- Current Tax 19,700.00 17,600.00

- Mat Credit Entitlement 19,700.00 17,600.00

- -

- Deferred Tax 30,000.00 30,000.00 30,500.00 30,500.00

PROFIT AFTER TAX 63,548.88 57,192.48

Earnings per share (Nominal value of share ` 10) 39

Basic 32.78 29.52

Diluted 26.33 25.63

1

Notes forming part of Accounts 2 to 45

38

Cash Flow Statementst March, 2014

(` in Lacs)

31.03.2014 31.03.2013

(A) CASH FLOW FROM OPERATING ACTIVITIES:93,548.88 87,692.48

Adjustments for :Depreciation 87,838.27 74,655.12

312.03 493.58Interest & Financial Charges 1,48,116.32 1,11,702.09Interest Income (4,313.42) (3,536.71)

(15.16) (274.87) (141.40) (19.46)

Diminution write back - (3.77)Diminution in Investment 5.53 296.48 Dividend Received (2.77) (24.26)Provision for Doubtful Debts 39.36 184.80Exchange Fluctuation (1,983.37) 2,29,855.39 (292.06) 1,83,180.94

3,23,404.27 2,70,873.42Adjustments for :Inventories (1,15,778.12) (22,681.40)Trade & Other Receivables 28,884.63 (1,19,268.96)Trade Payables 58,929.34 (27,964.15) 1,265.87 (1,40,684.48)Cash Generated from Operations 2,95,440.12 1,30,188.94Less : Taxes Paid (Net of Refund) 19,700.00 17,272.90 Net Cash From Operating Activities (A) 2,75,740.12 1,12,916.04

(B) CASH FLOW FROM INVESTING ACTIVITIESPurchase of Fixed Assets/Capital Expenditure (5,50,353.47) (5,86,895.29)Sale / Refund of Fixed Assets 2,294.71 1,324.36Purchase of Investment 2,540.06 (1,451.42)

141.40 19.46 Dividend Received 2.77 24.26Interest Income Received 4,313.42 3,209.61Net Cash Used In Investing Activities (B) (5,41,061.11) (5,83,769.02)

(C) CASH FLOW FROM FINANCING ACTIVITIESProceeds from Issue of Share Capital 1,20,787.38 24,379.75Long-Term Borrowings (Net) 4,05,026.17 5,47,983.81Short-Term Borrowings (Net) 11,507.78 1,20,926.10Inter Corporate Deposits (3,544.31) (2,655.98)Interest & Financial Charges Paid (3,24,050.17) (2,32,346.89)Dividend Paid (142.66) (96.97)Dividend Tax Paid (24.25) (16.48)Net Cash Flow From / (used in) Financing Activities (C) 2,09,559.94 4,58,173.34Net Increase in Cash and Cash Equivalents (A+B+C) (55,761.06) (12,679.64)Opening Balances of Cash and Cash Equivalents 73,365.32 86,044.96Closing Balances of Cash and Cash Equivalents 17,604.26 73,365.32(including balance in dividend account)





39

NOTE-1 SIGNIFICANT ACCOUNTING POLICIES i) BASIS OF PREPARATION OF FINANCIAL STATEMENTS

(a) Basis of Accounting:

India and presented under the historical cost convention on accrual basis of accounting to comply with the accounting standards prescribed in the Companies (Accounting Standards) Rules, 2006 and with the relevant provisions of the Companies Act, 1956.

(b) Use of Estimates:

requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and

during the period. Difference between the actual result and estimates are recognized in the period in which the results are known/ materialized.

ii) FIXED ASSETS

(a) Tangible Fixed Assets

purchase price, borrowing costs relating to qualifying assets till commencement of commercial production and directly attributable cost of bringing the assets to its working condition for the intended use. Any trade discounts and rebates are deducted in arriving at the purchase price.

from the existing assets beyond its previously assessed standard of performance.

From accounting periods commencing on or after 7 December 2006, the company adjusts exchange differences arising on translation/settlement of long-term foreign currency monetary items pertaining to acquisition of a depreciable asset to the cost of the asset and depreciated the same over the remaining life of asset.

are capitalized. Replacement of such spares is charged to revenue. Capital expenditure on assets not owned by the

(b) Assets in the course of construction

associated with the commissioning of an asset are capitalized where the asset is available for use but incapable of operating at normal levels until a period of commissioning has been completed.

(c ) Intangible Assets

In accordance with the Accounting Standard (AS) 26 relating to intangible assets, all costs incurred on technical know-how / license fee relating to production process are charged to revenue in the year of incurrence. Costs incurred on technical know-how / license fee relating to process design / plants / facilities are capitalized at the time of capitalization

iii) IMPAIRMENT OF ASSETS

Carrying amount of cash generating units / assets is reviewed for impairment, if events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If any such indication exists, the recoverable amount is estimated as

the carrying amount of an asset/cash generating unit exceeds its recoverable amount.

iv) DEPRECIATION

the Companies Act, 1956.

depreciation has been provided as aforesaid over the residual life of the respective plants.

40

from the year in which the relevant assets have been completed and available for use. In other cases, these are amortized in the year in which expenditure is incurred.

Premium of leasehold land is amortised over the period of lease except leasehold land acquired on lease of ninety years or ` 5,000/- is charged @ 100% on pro-rata basis.

v) REVENUE/EXPENDITURE RECOGNITION

to the customer. Sales are inclusive of sales during trial run, excise duty and net of sales tax/vat.

Dividend income is recognized when the Companys right to receive dividend is established. Interest income is recognized on accrual basis in the income statement.

Expenditure is accounted for on accrual basis and provision is made for all known losses and liabilities.

vi) FOREIGN CURRENCY TRANSACTIONS

Transactions denominated in foreign currencies are normally recorded at the exchange rates prevailing at the date of the transactions. Monetary items denominated in foreign currencies outstanding at the year-end are translated at the exchange rate applicable as on that date. Non monetary items are valued at the exchange rate prevailing on the date of transaction.

From accounting periods commencing on or after 7 December 2006, the company accounts for exchange differences arising on translation/settlement of foreign currency monetary items as follows:

a) Exchange differences relating to long-term monetary items, arising during the year, in so far as they relate to the acquisition of depreciable capital assets are added to/deducted from the cost of asset and depreciated over the remaining useful life of the asset.

b) In other cases such differences are accumulated in Foreign Currency Monetary Item Translation Difference Account

in which they arise.

The premium or discount arising at the inception of forward exchange contracts is amortized & recognized as an expense/income over the life of the contract. Exchange differences on such contracts which are long term foreign currency monetary

arising on cancellation of or renewal of such contracts is also recognized as income or expense for the period. Any gain/loss arising on forward contracts which are long term foreign currency monetary items is recognized in accordance with para (a), (b) and (c) above.

vii) INVESTMENTS

investments are stated at the lower of cost and quoted/ fair value. Long term investments are stated at cost less any provision for other than temporary diminution in value.

viii) INVENTORY VALUATION

Inventories are valued at lower of cost or net realizable value except scrap which is valued at net realizable value. The cost

other costs incurred in bringing the inventories to their present location and condition.

cleared as also provision made for goods lying in the factory and included in the value of such stocks.

ix) INCOME TAX

Provision for current income tax is made after taking credit for allowances and exemptions. In case of matters under appeal, due to disallowance or otherwise, provision is made when the said liabilities are accepted by the Company.

MAT credit available as an asset only to the extent that there is convincing evidence that the company will pay normal income

41

In accordance with the Accounting Standard 22-Ac

using the tax rates and the tax laws that have been enacted or substantively enacted as of the Balance Sheet date.

Deferred tax assets arising from temporary timing difference are recognized to the extent there is virtual certainty that the asset will be realized in future.

x) BORROWING COST

Borrowing cost includes interest, amortization of ancillary costs incurred in connection with the arrangement of borrowings and exchange differences arising from short term foreign currency borrowings to the extent they are regarded as an adjustment to interest cost.

Borrowing Cost that are attributable to the acquisition or construction of qualifying assets are capitalised as part of the cost of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for its intended use. All

xi) MODVAT / CENVAT / VAT

on purchase of raw materials and other materials are deducted from the cost of such materials.

xii) CLAIMS

Claims receivable are accounted for depending on the certainty of receipt and claims payable are accounted at the time of acceptance.

xiii) PROPOSED DIVIDEND

Dividend as proposed by the Board of Directors is provided for in the books of account, pending approval at the Annual General Meeting.

xiv) RETIREMENT/POST RETIREMENT BENEFITS

service is rendered.

administered through provident fund commissioner. The Companys contribution is charged to revenue every year.

c) Companys contribution to state plans namely Employees State Insurance Fund is charged to revenue every year.

for which is determined on the basis of Actuarial valuation at the end of the year. Gratuity Trust is administered through Life Insurance Corporation of India.

xv) PROVISIONS

Show cause notices issued by various government authorities are not considered as obligation. When the demand notice are

Provisions involving substantial degree of estimation in measurement are recognised when there is a present obligation as a

xvi) FINANCIAL DERIVATIVE TRANSACTION

to the carrying cost of such assets.

xvii) CONTINGENT LAIBILITY & COMMITMENTS

or non occurrence of one or more uncertain future events beyond the control of the company. Where the potential liabilities

edings, the company does not expect them to have a materially adverse impact

NOTES TO ACCOUNT

(` in Lacs)

31.03.2014 31.03.2013

NOTE - 2 SHARE CAPITAL Authorised

37,50,00,000 (Previous Year 30,00,00,000) Equity Shares of `10/- each 37,500.00 30,000.00

75,00,000 (Previous Year 50,00,000) Preference Shares of `100/- each 7,500.00 5,000.00

45,000.00 35,000.00

Issued, Subscribed & Paid Up19,37,15,000 (Previous Year 19,37,15,000) Equity Shares of `10/- each 19,371.50 19,371.50

42,93,155 (Previous year 7,61,867) 2% Cumulative Compulsorily Convertible Preference Shares of `100/- each

4,293.16 761.87

23,664.66 20,133.37

Note 2.1 - Details of Shareholders holding more than 5% shares in the Company

No. of shares% Holding

in the class No. of shares% Holding in

the class

Equity Shares of ` 10 each fully paid

4,10,68,673 21.20% 4,10,68,673 21.20%

Diyajyoti Steel Ltd. 4,00,32,750 20.67% 4,00,32,750 20.67%

Jasmine Steel Trading Ltd. 3,97,72,500 20.53% 3,97,72,500 20.53%

Marsh Steel Trading Ltd. 3,95,53,500 20.42% 3,95,53,500 20.42%

Sh. Sanjay Singal 1,25,85,436 6.50% 1,25,85,436 6.50%

Baring Private Equity Asia III Mauritius Holdings (3) Limited 1,07,14,285 5.53% 1,07,14,285 5.53%

2% Cumulative Compulsory Convertible Preference Shares of `100 each fully paid

7,67,455 17.88% 2,21,797 29.11%

Diyajyoti Steel Ltd. 7,28,355 16.97% 1,76,055 23.11%

Jasmine Steel Trading Ltd. 7,34,880 17.12% 1,74,090 22.85%

Marsh Steel Trading Ltd. 7,42,915 17.30% 1,89,925 24.93%

Sh. Sanjay Singal 4,40,390 10.26% - -

Smt Aarti Singal 4,29,560 10.01% - -

Sh. Sanjay Singal (HUF) 2,63,350 6.13% - -

Note 2.2 - Reconciliation of share outstanding at the beginning and at the end of the reporting period(a) Equity Shares No. of shares Amount No. of shares Amount

Equity shares at the beginning of the year 19,37,15,000 19,371.50 19,37,15,000 19,371.50

Add: Equity share issued/cancelled during the year - - - -

Equity shares outstanding at the end of the year 19,37,15,000 19,371.50 19,37,15,000 19,371.50

(b) 2% Cumulative Compulsory Convertible Preference Shares of ` 100 each fully paid

No. of shares Amount No. of shares Amount

Preference shares at the beginning of the year 7,61,867 761.87 - -

Add: Fresh issue of Preference shares during the year 35,31,288 3531.29 7,61,867 761.87

Less: Redeemed /Cancelled during the year - - - -

Preference shares outstanding at the end of the year 42,93,155 4,293.16 7,61,867 761.87

42

Note 2.3 - Terms/Rights attached to Equity Shares

The Company has only one class of equity shares having a par value of ` 10 per share. Each holder of equity shares is entitled to one vote per share. Dividend shall be paid proportionately to the amounts paid on shares. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

During the year ended 31st March 2014, the amount of per share dividend recognized as distributions to equity shareholders was ` 0.05 (Previous year ` 0.05)

In the event of liquidation of the company, the holders of equity shares will be entitled to receive remaining assets of the company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

Note 2.4 -Terms/Rights Attached to Preference Shares

2 % cumulative compulsorily convertible preference shares 7,61,867 of `100/- each were alloted at a premium of `13 on private/preferencial placement basis.

2 % cumulative compulsorily convertible preference shares 9,35,900 and 25,95,388 of `100/- each were alloted at a premium of ` 3100/- and ` 3400/- respectively

All preference shares (Including share premium received) are cumpulsorily convertible into equity shares at fair market value either within 5 years or before initial public offer or as may be decided by the board of directors or committee thereof, whichever is earlier. Preference shares do not carry any voting right and dividend will be paid proportionately to the amount paid on shares.

However on non-payment of dividend for two years, the preference shareholders becomes entitled to vote as per section 87 of companies act, 1956.

In the event of liquidation of the company, the holder of the preference shares will be entitled to receive remaining assets of the company in preference over equity shareholders. The distribution will be in proportion to the number of preference shares held by the shareholder.

Note 2.5 - Shares reserved for Issue under options

For details of shares reserved for issue on conversion of loans, refer note 4.2 regarding terms of conversion/redemption of loans.

(` in Lacs)

31.03.2014 31.03.2013

NOTE - 3 RESERVES AND SURPLUSCapital Reserve 1.00 1.00Capital Redemption Reserve 13.50 13.50Securities Premium AccountAs Per Last Balance Sheet 2,91,790.85 2,68,172.97Add:-Received during the year 1,17,256.09 4,09,046.94 23,617.88 2,91,790.85General ReserveAs Per Last Balance Sheet 1,67,000.00 1,46,236.19

33,000.00 2,00,000.00 20,763.81 1,67,000.00

SurplusAs Per Last Balance Sheet 1,48,419.14 1,12,103.92

63,548.88 57,192.48Less:- Transferred to General Reserve 33,000.00 20,763.81Less:- Proposed Equity Final Dividend 96.86 96.86Less:- Proposed Preference Dividend 45.81 0.11Less:- Tax on Proposed Equity Dividend 16.46 16.46Less:- Tax on Proposed Preference Dividend 7.79 1,78,801.10 0.02 1,48,419.14

7,87,862.54 6,07,224.50

NOTE - 4 LONG TERM BORROWINGSSECURED LOANS Term Loans From Banks

- Rupee Loans 15,88,317.60 12,56,839.37- Foreign Currency Loans 6,20,829.47 5,41,820.96

Deferred Credits from Banks 1,736.85 1,049.80UNSECURED LOANSFrom Banks 30,000.00 -

22,40,883.92 17,99,710.13

43

NOTE 4.1 Security Detail of Long Term Borrowings (Including Current Maturities)

(i) Secured(a) ` 21,98,661.08 Lacs (Previous year `

tools, spares, accessories, {excluding assets exclusively charged to IKB Deutsche Industrie Bank (Germany), Unicredit Bank (Austria), Bayern LB Bank (Germany), KFW IPEX GmbH (Germany), Deutsche Bank S.p.A. (Italy) and Intesa Sanpaolo S.p.A. (Hongkong)} created and/or to be created in favour of Companys bankers.

Chandigarh Road, 186, G.T. Road, Ludhiana, Bangihatti Serampore (Near Kolkata), village Dhubenchhapar, Khadiapali, Thelkoloi, Jangla, Brahmmipali,

at Alipore, Kolkata (both present & future), ranking pari-passu interse between term lenders and further secured by personal guarantee of Chairman cum

` 2,09,662.23 Lacs (Previous year `respect of Companys immovable property situated at D-818, New Friends Colony New Delhi.

(b) ` 1,52,964.45 Lacs (Previous year `

(c) ` 8,634.91 Lacs (Previous year `` 10,000 Lacs ) erected/to be erected/

constructed/ installed at Rengali, Sambalpur, Odisha, wherein the equipments are located/ shall be located including CSP plant, CSP Caster shed, CSP Tunnel Furnace shed, CSP Mill shed and Hot Rolled Coils Handling & Storage and further secured by immovable property situated at Flat No. 215-C Pocket C, IInd Floor, Sidharth Extention, New Delhi.

(d) ` 2,194.35 Lacs (Previous year `

Sambalpur, Odisha, wherein the equipments are located/ shall be located includes Hicon/H2 Bell Annealer.(e) ` 25,105.08 Lacs (Previous year `

` 19,435 Lacs) erected/to be erected/ constructed/ installed at Rengali, Sambalpur, Odisha, wherein the equipments are located/ shall be located including Pellet Plant, Centreless Grinding Line, Combined Drawling Line and Pealing Line.

(f) ` 16,821.67 Lacs (Previous year `

Odisha, wherein the equipments are located/ shall be located includes New Coke Oven Plant, New Blast Furnace, New SMS, Heavy Bar Mill, CDQ Plant and New Sinter Plant.

(g) ` 2,116.85 Lacs (Previous year ` 1,234.80 Lacs) including current Maturity of ` 380.00 Lacs (Previous year ` 185.00 Lacs) is secured by hypothecation of

(ii) Unsecured

` 30,000.00 Lacs (Previous year `Director.

NOTE 4.2 Terms of repayment and conversion of Term Loans (` in Lacs)

1. Terms of repayment 2014-15 2015-16 2016-17 & beyond

1,95,614.46 3,60,973.00 18,80,912.40

(i) LOAN SANCTION UNDER SYNDICATION (a) Domestic Loan of NIL (Previous year 9,695.85 Lacs) is outstanding as on 31.03.2014. Domestic loan converted into Foreign Currency (in USD) outstanding

as on 31.03.2014 amounts to ` NIL (Previous year ` 16,249.04 Lacs).(b) Domestic Loan of ` 47,108.68 Lacs (Previous year ` 65,904.06 Lacs) is outstanding as on 31.03.2014. Interest is linked with base rate of the respective bank

and lead bank rate is presently @13% p.a. is payable on said loan. Domestic loan converted into Foreign Currency (in USD) outstanding as on 31.03.2014 amounts to ` 60,781.73 Lacs (Previous year ` 28,687.21 Lacs) on which Interest is payable @ LIBOR + (425) basis points (presently 4.62%) p.a. Amount due is repayable in quarterly installments as mentioned.

(c) Domestic Loan of ` 2,06,123.27 Lacs (Previous year ` 2,22,355.08 Lacs) is outstanding as on 31.03.2014. Interest is linked with base rate of the respective bank and lead bank rate is presently @12.75% p.a. is payable on said loan. Domestic loan converted into Foreign Currency (in USD) outstanding as on 31.03.2014 amounts to ` 3,538.96 Lacs (Previous year ` 29,338.88 Lacs) on which Interest is payable @ LIBOR + (475) basis points (presently 5.20% to 7.45%) p.a. Amount due is repayable in quarterly installments as mentioned.

(d) Domestic Loan of ` 3,31,029.09 Lacs (Previous year ` 3,02,439.43 Lacs) is outstanding as on 31.03.2014. Interest is linked with base rate of the respective bank and lead bank rate is presently @12.25% p.a. is payable on said loan. Domestic loan converted into Foreign Currency (in USD) outstanding as on 31.03.2014 amount to ` NIL (Previous year ` 2,748.88 Lacs). Amount due is repayable in quarterly installments as mentioned.

(e) Foreign Currency Loan of ` 4,53,502.92 Lacs (Previous year ` 4,18,727.84 Lacs) is outstanding as on 31.03.2014. Out of this ` 85,683.13 Lacs (Previous year ` 64,512.96 Lacs) is repayable in half yearly installments carrying interest @ 3/6 Months LIBOR/EURIBOR + (70 to 200) basis points (presently 1.15% to 2.45%) p.a., ` 3,67,819.79 Lacs (Previous year ` 3,54,214.88 Lacs) is repayable in yearly installments carrying interest @ 3/6 Months LIBOR + (220 to 475) basis points (presently 2.48% to 5.03%) p.a. Amount & period of repayment is as mentioned.

44

(ii) LOAN OTHER THEN SYNDICATION

(a) Domestic loan of ` 10,45,796.45 Lacs (Previous year ` 6,89,369.15 Lacs) is outstanding as on 31.03.2014. Interest @(11.65% to 13.50%) p.a. is payable on said loan. Domestic loan converted into foreign currency (in USD) outstanding as on 31.03.2014 amounts to ` 1,09,315.86 Lacs (Previous year ` 43,485.69 Lacs) on which Interest is payable @ LIBOR + (500 to 750) basis points (presently 5.45% to 7.95%) p.a. Amount & period of repayment is as mentioned.

(b) Foreign Currency Loan of ` 51,085.00 Lacs (Previous year ` 46,231.50 Lacs) is outstanding as on 31.03.2014 is repayable in half yearly installments carrying interest @ 3/6 Months on which Interest is payable @ LIBOR + (500 to 750 )basis points (presently 4.45% to 7.95%) p.a. Amount & period of repayment is as mentioned.

(c) Unsecured loan amounting of `quarterly installment carrying interest @ 13.25% repayments start with term loan from 01.04.2018. Amount & period of repayment is as mentioned.

(d) The Company also has term loan aggregating to ` 31,099.57 Lacs (Previous year ` 53,548.64 Lacs). From Bank of India of ` 229.86 Lacs (Previous year ` 12,000.00 Lacs) presently at 13.25% p.a., Canara Bank of ` 6,062.94 Lacs (Previous year ` 11,800.00 Lacs) @ 13.25%, United Bank Of India of ` 1,598.61 Lacs (Previous year ` ` 8,038.00 Lacs (Previous year ` 10,000.00 Lacs) @ 13.25%, and Andhra Bank of ` 15,170.15 (Previous year `yearly / yearly installments as mentioned. The lenders were having option to convert into equity shares in case the company comes out with IPO within 3

of conversion has expired during the year.

2. Terms of Conversion of Term Loan into Equity Shares

Domestic Loan of ` 65,000.00 Lacs (Previous year ` 65,000.00 Lacs) is outstanding as on 31st March, 2014 interest @13.25% p.a. is payable on said loan.

(` in Lacs)31.03.2014 31.03.2013

NOTE - 5 DEFERRED TAX LIABILITIESDeferred Tax Liability On Account Of :Related To Fixed Assets 1,41,706.81 1,11,665.64Deferred Tax Assets On Account Of :Provision For Doubtful Debts 679.84 636.21Disallowances Under The Income Tax Act,1961 943.88 1,623.72 946.34 1,582.55Net Deferred Tax Liability 1,40,083.09 1,10,083.09

NOTE - 6 OTHER LONG TERM LIABILITIESSecurity Deposits 14,618.50 16,316.69Liability For Capital Goods/Expenditures 93,555.04 1,90,299.75Other (Forward Premium) 10,653.50 -

1,18,827.04 2,06,616.44

NOTE - 7 LONG TERM PROVISIONS

Provision for Gratuity 1,547.14 1,519.08Leave Encashment 1,324.47 1,315.70

2,871.61 2,834.78

NOTE - 8 SHORT TERM BORROWINGSSECURED LOANS FROM BANKSWorking Capital Loans

- Rupee Loans 3,40,521.06 2,04,956.55- Foreign Currency Loans 57,973.91 48,262.45

Term Loans-Rupee Loans 91,045.95 1,97,641.10-Foreign Currency Loans - 5,173.04

UNSECURED LOANSFrom Banks

-Commercial Paper 8,000.00 25,000.00-Rupee Loans - 5,000.00

From Others-Loan From Related Party 1,001.48 -

4,98,542.40 4,86,033.14

45

46

NOTE 8.1

Security Detail of Short Term Borrowings

(i) Secured

(a) ` 3,98,494.97 Lacs (Previous year `bookdebts, investments , other current assets and all moveable property {(excepts assets exclusively charged to IKB Deutsche Industrie Bank, Germany, Unicredit Bank, Austria and Bayern LB Bank, Germany), KFW IPEX GmbH (Germany), Deutsche Bank S.p.A. (Italy) and Intesa Sanpaolo S.p.A. (Hongkong)}

immovable properties, building, structure and all plant & machinery fastened to earth at Plot No. 22, 71, Industrial Area, Chandigarh,Derabassi on Ambala-Chandigarh Road,186, G.T. Road, Ludhiana, Bangihatti Serampore (Near Kolkata),village Dhubenchhapar, Khadiapali,Thelkoloi,Jangla, Brahmmipali,

situated at Alipore, Kolkata. The security ranks pari-passu inter-se between consortium member banks.Loans are further secured by personal guarantee of

(b) ` 76,955.19 Lacs (Previous year `(c) ` 14,090.76 Lacs (Previous year ` 39,597.08 Lacs) is secured by First charge on current assets of the company.

(ii) Unsecured

` NIL (Previous year `

(` in Lacs)

31.03.2014 31.03.2013

NOTE - 9 TRADE PAYABLEOutstanding dues to Micro & Small Enterprises (Refer Note 34) 189.81 123.74Outstanding dues to other than Micro & Small Enterprises 1,34,503.54 91,067.36

1,34,693.35 91,191.09NOTE - 10 OTHER CURRENT LIABILITIESCurrent Maturities of Long Term Debts 1,95,614.46 1,95,305.91Interest Accrued but not due on borrowings 14,732.38 11,681.41Advances from Customers 4,385.43 4,649.28Accrued Expenses 4,486.01 2,894.96Security Deposits 118.40 338.86Due to Directors 11.81 13.12Statutory Dues 18,830.46 9,157.76Other Payables* 7,173.23 5,076.69

2,45,352.18 2,29,117.99

*(Includes amount payable to employees)

NOTE -11 SHORT TERM PROVISIONS

Provision for Gratuity 363.05 125.00

Provision for Leave Encashment 180.88 143.72

Other ProvisionsProvision for Proposed Equity Dividend 96.86 96.86

Provision for Proposed Preference Dividend 45.82 0.11

Provision for Tax on Proposed Equity Dividend 16.46 16.46

Provision for Tax on Proposed Preference Dividend 7.79 0.02

Provision for Income tax (Net) 6,446.95 2,194.80

Provision for Wealth Tax (Net) 178.12 142.86

7,335.93 2,719.83

47

NOTE - 12 FIXED ASSETS (` in Lacs)

DESCRIPTION OFFIXED ASSETS

GROSS BLOCK DEPRECIATION NET BLOCK

As At01.04.2013

AdditionsDuring the

Year

Adjustment during the

year

Sale/DiscardedDuring the

Year

As At31.03.2014

As At01.04.2013

For the Year

Adjustmentduring the

Year

Written backduring the

Year

As at31.03.2014

As At31.03.2014

As At31.03.2013

Tangible Assets

Freehold Land 18,202.14 1,493.87 317.67 - 20,013.68 - - - - - 20,013.68 18,202.14

Leasehold Land 25,212.73 1,424.99 (306.55) - 26,331.17 41.75 38.37 - - 80.12 26,251.05 25,170.98

Building 3,95,823.35 2,45,316.59 50,455.99 561.79 6,91,034.14 24,936.04 14,377.28 - 307.67 39,005.65 6,52,028.49 3,70,887.31

Railway Siding 2,680.66 - - - 2,680.66 863.63 127.33 - - 990.96 1,689.70 1,817.03

Plant & Equipment 12,00,849.41 5,05,647.36 2,07,705.78 10,107.72 19,04,094.83 2,46,404.66 71,284.57 - 8,083.55 3,09,605.68 15,94,489.15 9,54,444.75

Furniture & Fixture 1,528.73 113.89 - - 1,642.62 496.40 98.44 - - 594.84 1,047.78 1,032.33

613.52 59.22 - 0.07 672.67 200.75 36.67 - 0.02 237.40 435.27 412.77

3,905.00 375.85 - 13.34 4,267.51 1,988.06 301.23 - 12.12 2,277.17 1,990.34 1,916.94

Assets not owned by the Company

4,904.71 2,183.20 - - 7,087.91 4,561.93 2,302.67 - - 6,864.60 223.31 342.78

Sub-total (A) 16,53,720.25 7,56,614.97 2,58,172.89 10,682.92 26,57,825.19 2,79,493.22 88,566.56 - 8,403.36 3,59,656.42 22,98,168.77 13,74,227.03

Intangible Assets

Technical Knowhow 127.64 - - - 127.64 127.64 - - - 127.64 - -

Computer Softwares 162.04 1,720.84 - - 1,882.89 47.42 33.35 - - 80.77 1,802.10 114.62

Sub-total (B) 289.68 1,720.84 - - 2,010.53 175.06 33.35 - - 208.41 1,802.10 114.62

Total(A+B) 16,54,009.93 7,58,335.81 2,58,172.89 10,682.92 26,59,835.72 2,79,668.28 88,599.91 - 8,403.36 3,59,864.83 22,99,970.87 13,74,341.65

Previous Year 14,63,189.37 1,47,700.57 48,831.99 5,712.00 16,54,009.93 2,08,426.82 75,903.97 1,248.85 3,413.66 2,79,668.28

Capital Work-in-Progress 10,57,831.41 14,19,398.16

Intangible Assets Under Development - 1,493.44

Total 33,57,802.28 27,95,233.25

Note: 1. No write off has been done for lease hold land acquired on lease of 90 years and more. 2. Depreciation for the year includes ` 761.64 Lacs (Previous year ` 1,248.85 Lacs) charged to capital work in progress. 3. Adjustment during the year includes: a) Addition of ` b) ` 11.12 Lacs (Previous year Nil) regrouped from Building to leasehold land and ` 317.67 Lacs (Previous year Nil) regrouped from leasehold land to freehold land.

48

(` in Lacs)

31.03.2014 31.03.2013

NOTE -13 NON-CURRENT INVESTMENTQUOTEDLong Term, Trade (Valued At Cost)Investment in Equity Shares (Fully paid up)- ASSOCIATESNova Iron & Steel Ltd ( Refer note 32 )1,42,69,146 (Previous Year 1,42,69,146 ) Equity Shares of ` 10/-each 7,672.35 7,672.35 - OTHERSOrissa Sponge Iron & Steel Ltd840 (Previous Year 840 ) Equity Shares of ` 10/-each 7.80 7.80 Aggregate Value of Quoted Investment (A) 7,680.15 7,680.15 UNQUOTEDLong Term, Trade (Valued At Cost)Investment in Equity Shares (Fully paid up)- ASSOCIATESAmbey Steel & Power Pvt Ltd28,14,215 (Previous Year 28,14,215 ) Equity Shares of ` 100/-each 2,828.29 2,828.29 Aarti Minerals (Australia) PTY. Ltd.5,66,000 ( Previous Year 5,66,000 ) Ordinary Shares of AUD 1 each 295.04 295.04 Less :- Provision for diminution (295.04) (295.04)- JOINT VENTURERohne Coal Company Pvt. Limited2,40,900 (Previous Year 2,40,900 ) Equity Shares of `10/-each fully paid up 24.09 24.09 - OTHERSSkap Electronics Pvt. Ltd.980 ( Previous Year 980 ) Equity Shares of `100/-each 982.45 982.45 Investment in Preference Shares (Fully paid up)- JOINT VENTURERohne Coal Company Pvt. Limited69,19,778 (Previous Year 69,19,778 ) 1 % Non Cumulative Redeemable Preference Shares of `10/-each 691.98 691.98 Aggregate Value of Unquoted Investment (B) 4,526.81 4,526.81

(A+B) 12,206.96 12,206.96 Aggregate Value of Quoted Investment 7,680.15 7,680.15 Aggregate Value of Unquoted Investment 4,526.81 4,526.81 Market Value of Quoted Investment 2,725.95 1,448.91

NOTE - 14 LONG TERM LOANS AND ADVANCES(Unsecured, Considered good)Capital Advances 67,857.62 40,772.91 Security Deposits 8,956.61 7,680.60 Loans and Advances to Employees* 613.38 1,237.57

359.93 232.55 MAT Recoverable 82,940.00 63,240.00

1,60,727.54 1,13,163.63 *Loans and Advances include ` Nil (Previous year `

NOTE - 15 OTHER NON CURRENT ASSETS(Unsecured,Considered Good Unless Stated Otherwise)(A) Long Term Trade Receivables

Considered Good 1,742.06 3,379.30 Doubtful 2,000.12 1,960.88

3,742.18 5,340.18 Less:- Provision For Doubtful Debts 2,000.12 1,960.88

1,742.06 3,379.30 (B) Cash & Bank Balance

Non Current Fixed Deposit (Refer Note-19) 234.49 - 1,976.55 3,379.30

49

(` in Lacs)

31.03.2014 31.03.2013

NOTE - 16 CURRENT INVESTMENTUNQUOTEDNon- Trade (Valued at Lower of Cost and Fair Value)Investment in BondsIndusind BankNIL ( Previous Year 10 ) Unsecured, Non Convertible Bond of ` 10 Lacs each, fully paid up - 100.00 Cholamandlam Investment & Finance Co.Ltd (Bonds)NIL (Previous Year 100 ) Bonds of ` 5 lacs each - 510.63 Investment in Mutual fund - Liquid FundCanara Robeco Indigo Growth Fund-IG-GPNIL ( Previous Year 8,20,761.9950 ) Units of ` 10/- each - 100.00 Canara Robeco Gold Saving Fund-dividend12,32,869.1413 (Previous Year 13,69,762.5301 )Units of ` 10/- each 120.13 138.00 Less :- Provision for diminution (5.53) - CP1G Union KBC Capital Protection Oriented Fund19,99,990(Previous Year 19,99,990 )Units of ` 10/- each 199.77 199.77 CP2G Union KBC Capital Protection Oriented Fund20,00,000(Previous Year 20,00,000 )Units of ` 10/- each 200.00 200.00 CP5G Union KBC Capital Protection Oriented Fund10,00,000(Previous Year Nil )Units of ` 10/- each 100.00 - EFGR Union KBC Equity Fund GrowthNIL ( Previous Year 10,00,000 ) Units of ` 10/- each - 100.00 SBI - Magnum Income - Fund GrowthNIL (Previous Year 17,35,285.6450 )Units of ` 10/- each - 500.00 Canara Robeco Capital Protection Oriented Fund5,50,000 (Previous Year NIL) Units of ` 10/- each 55.00 - Canara Robeco Tresure Advantage Fund-Dividend289.6491 (Previous Year 1907.2072 )Units of ` 1000/- each 3.59 23.66 Canara Robeco Monthly Income Plan38535.8780(Previous Year NIL )Units of ` 10/- each 5.18 - Canara Robeco Short Term Fund Growth26120.2727 (Previous Year NIL )Units of ` 10/- each 3.75 - Canara Robeco Income Regular Growth39728.1930 (Previous Year NIL )Units of ` 10/- each 10.00 - PNB- Principal Income Fund Long Term Plan4,93,710.0710 (Previous Year NIL )Units of ` 10/- each 100.00 - DSP Blackrock MIP Fund Growth 2,36,603.5090(Previous Year 2,36,603.5090 )Units of ` 10/- each 50.00 50.00 UTI Floating Rate Growth Fund5036.1868 (Previous Year Nil) )Units of ` 100/- each 103.20 - UTI Nifty Index Fund-Growth9778.7089 (Previous Year Nil) )Units of ` 100/- each 4.00 - UTI short Term Income FundNil (Previous Year 15,05,325.1140 )Units of ` 10/- each - 200.00 Aggregate Value of Unquoted Investment 949.09 2,122.06

NOTE - 17 INVENTORIESRaw Material 1,87,755.09 94,362.02 Raw Material-in-Transit 6,017.91 4,270.35 Work-in-Progress 4,256.19 5,747.89 Finished Goods 78,469.98 72,111.17 Finished Goods in Transit 5,832.93 5,833.86 Stock-in-Trade 1,269.86 5,819.71 Stores & Spares 33,802.94 10,356.95 Others 806.39 769.50

3,18,211.29 1,99,271.45

50

(` in Lacs)

31.03.2014 31.03.2013

NOTE - 18 TRADE RECEIVABLE(Unsecured, Considered Good)Outstanding for a period exceeding six months from due date 2,922.21 3,904.12 Others 1,59,514.48 1,67,936.49

1,62,436.69 1,71,840.61 NOTE -19 CASH & BANK BALANCE(A) Cash and Cash Equivalents

Cash on Hand 59.63 93.65 Balances with Scheduled Banks

- In Current Account 12,425.57 63,806.67 - Deposits with original maturity of less than three months 1,359.04 2,102.13

(B) Other Bank Balances Fixed Deposits Having Maturity Period:-

- For More Than 12 Months* 245.22 6.49 - 3 to 12 Months* 3,749.29 7,356.38

17,838.75 73,365.32 Less Non Current Fixed Deposit 234.49 -

17,604.26 73,365.32 *(Including interest accrued but not due, under bank lien)

NOTE -20 SHORT TERM LOANS & ADVANCES(Unsecured, Considered Good)Advances recoverable in cash or in kind or for value to be received* 1,14,547.09 1,34,257.88Loans and Advances -To related parties 7,802.25 7,739.38-To Employees** 397.58 353.76-To Corporate Bodies & Others 17,080.71 13,536.40Advance for Investment - 1,500.00Balance with Excise Authorities 0.57 5.76

28,277.10 27,688.601,68,105.30 1,85,081.78

* "Advances recoverable in cash or in kind for value to be received includes ` 13,692 Lacs (Previous year ` 13,692 Lacs) given to a Private Company in which directors are Members/Director.**Loans and Advances include ` 1.60 Lacs (Previous year `Company. Maximum amount outstanding at any time during the year ` 3.35 Lacs (Previous year ` 9.03 Lacs).

NOTE -21 OTHER CURRENT ASSETSFixed Assets held for Disposal 96.76 -

96.76 - NOTE -22 REVENUE FROM OPERATIONSSales 8,73,328.30 7,78,405.37Export Sales 2,35,571.33 1,55,895.28Sales including Excise Duty 11,08,899.63 9,34,300.65Other Operating RevenueScrap Sales 12,625.63 10,246.81Export Sales (Scrap) 449.00 1,738.69Export Incentives 6,895.49 5,461.04

19,970.12 17,446.54Gross Revenue from Operations 11,28,869.75 9,51,747.19

51

(` in Lacs)

31.03.2014 31.03.2013

NOTE -23 OTHER INCOMEMisc. Income 159.18 204.62

141.40 19.4615.16 274.87

Diminution Write Back - 3.77Dividend Received on Current Investment 2.77 24.26

318.51 526.98NOTE -24 COST OF RAW MATERIAL CONSUMED Raw Material Consumed 4,65,912.19 4,30,771.02Less : Cost of Material Transferred to Projects Commissioned /Under Commissioning /Trial Run 842.59 919.24

4,65,069.60 4,29,851.78NOTE -25 CHANGE IN INVENTORIES OF FINISHED GOODS, WORK-IN-PROGRESS & STOCK-IN-TRADEOpening StockFinished Goods 77,945.02 59,924.03Stock-in-Trade 5,819.71 342.82Work-In-Progress 5,747.89 2,222.43Others 769.50 913.62

90,282.12 63,402.90Closing StockFinished Goods 84,302.91 77,945.02Stock-in-Trade 1,269.86 5,819.71Work-In-Progress 4,256.19 5,747.89Others 806.39 769.50

90,635.35 90,282.12Net (353.23) (26,879.22)

NOTE -26 EMPLOYEES BENEFITS EXPENSESSalary, Wages & Bonus 40,038.34 31,097.40Contribution to PF & Other Funds 545.52 530.18

667.88 683.8541,251.74 32,311.43

Less : -Transferred to Projects Commissioned /Under Commissioning /Trial Run 13,729.86 9,957.26

27,521.88 22,354.17

NOTE -27 FINANCE COSTSInterest Expenses* 2,95,490.64 2,24,943.98Other Borrowing Costs 31,610.51 7,019.90

3,27,101.15 2,31,963.88Less :Interest Earned** 4,313.42 3,536.71

3,22,787.73 2,28,427.17Less :

-Transferred to Projects Commissioned /Under Commissioning /Trial Run 1,78,984.84 1,20,261.801,43,802.89 1,08,165.37

*Includes ` Nil (Previous Year `400.83) on short payment of advance tax** Tax Deducted at Source `392.20 Lacs (Previous year ` 327.10 Lacs)

(` in Lacs)

31.03.2014 31.03.2013

NOTE - 28 OTHER EXPENSESStores Consumed 29,179.12 28,865.78Power & Fuel 94,124.28 78,336.82Excise Duty Provided on Stock (Net) 3,161.73 107.23 Rates and Taxes 815.10 793.27Legal & Professional Charges 2,013.65 802.33Insurance 554.55 384.71Auditors' Remuneration 124.52 104.83Travelling & Conveyance 2,894.00 2,428.24Advertisement & Sales Promotion 168.06 61.41Postage, Telegrams & Telephone 531.03 439.54Utility & Facility 587.10 1,225.22Rebate and Discount 3,266.85 3,096.31Selling and Distribution Expenses 48,127.30 27,907.76Selling Commission 492.25 74.80Repair and Maintenance:

- Building 342.83 126.59- Machinery 4,882.93 5,973.63

1,125.58 1,134.21Rent 24.01 201.12Other Administrative Expenses 427.13 507.41Exchange Fluctuation (Net) 2,819.75 557.36Investment Written Off - 1.43 Provision for Doubtful Debts 39.36 184.80Diminution in Investment 5.53 295.04

1,95,706.66 1,53,609.84Less :

-Transferred to Projects Commissioned /Under Commissioning /Trial Run 8,218.39 11,112.071,87,488.27 1,42,497.77

(` in Lacs)31.03.2014 31.03.2013

NOTE - 29 CONTINGENT LIABILITYA Contingent Liability

Bills discounted with banks 43,239.49 17,468.69Claims against the Company not acknowledged as debt 12,601.42 13,008.70Central / State Sales Tax Act 8,145.87 6,802.45Odisha Entry Tax Act 516.98 516.98Central Excise Act,1944 13,791.26 5,010.03Income Tax Act,1961 3,847.37 5,373.05Service Tax 10.93 14.56

B Commitmentsa) Capital Commitments

Estimated amount of contracts remaining to be executed on capital account and not provided for (Net of Advances)

2,63,064.13 1,88,702.20

b) Other CommitmentsOutstanding guarantees furnished to Banks & Financial Institutions including in respect of letters of credit (availed by the company)

49,202.51 47,882.38

NOTE - 30 130 MW Power Plant, Cold Rolling Mill, Galvanised and Steel Strips Plant and Tube Mill Plant have been commissioned during the year. Pellet Plant is put under Trial Run.

52

NOTE-31 Pre - Operative Expenses (In respect of project to be capitalised)(` in Lacs)

31.03.2014 31.03.2013

EXPENDITURE DURING CONSTRUCTION / INSTALLATION

Opening Balance 2,88,742.31 1,92,837.00Pre-Operative/Trial Run Expenses transfer from Statement of 22,790.84 21,988.57

Finance Costs (Refer note-27) 1,78,984.84 1,20,261.80Depreciation 761.64 2,02,537.32 1,248.85 1,43,499.22Total 4,91,279.63 3,36,336.22Less : Capitalised during the year 2,50,719.79 47,593.91Transferred to Capital Work in Progress 2,40,559.84 2,88,742.31

NOTE-32a scheme of capital reduction and restructuring with Honble High Court of Chhattisgarh, which approved the said scheme vide its order dated 18th Sept., 2012.Pursuant to the order of the Honble High Court, the capital of the said company has been reduced from 15,05,81,200 No. of Equity Shares of ` 10/- each to 15,05,81,200 No. of Equity Shares of `. 2.40/- each. Also share of said companies were transferred during the previous year under report which were acquired under SEBI (SAST) Regulations, in 2011.Simultaneously, pursuant to share holders approval 100 shares of ` 2.40/- each have been consolidated to 24 equity shares of ` 10/- each.In the opinion of management, the fall in market price of shares of Nova Iron & Steel Ltd. is temporary in nature. Based on legal opinion sought no provision for diminution has been made.

(` in Lacs)31.03.2014 31.03.2013

NOTE-33 Auditors Remuneration includes:

- Audit Fee 80.00 70.00

- Tax Audit Fee 20.00 15.0010.00 10.00

- Corporate Governance 5.00 -- Expenses Reimbursed 9.52 9.83 Total 124.52 104.83

NOTE-34 In respect of amounts due to Micro, Small and Medium Enterprises under The Micro, Small and Medium Enterprises Development

amount remaining unpaid as at 31st March, 2014 was ` 189.81 Lacs (Previous year `was paid or payable under the Act.The detail of amount outstanding to Micro, Small and Medium enterprises based on available information with the company as under:-

(` in Lacs)

31.03.2014 31.03.2013

Principal amount due and remaining unpaid - -

Interest due on above and the unpaid interest - -Interest Paid - -Payment made beyond the appointed day during the year - -Interest due and payable for the period of delay - -Interest Accrued and remaining unpaid - -Amount of further interest remaining due and payable in succeeding years - -

NOTE-35 The Company has recognized liability based on substantial degree of estimation for excise duty payable on clearance of goods lying in stock as on 31.03.2014 of ` 8,379.87 Lacs (Previous year `is expected in next year.There is no other present obligation requiring provision in accordance with the guiding principles as enunciated in Accounting Standard

53

NOTE-36are given below:-

(A)

(` in Lacs)31.03.2014 31.03.2013

a) Employer contribution to Provident Fund / Other Funds 545.52 530.18b) Employer contribution to State Plans

i) Employee State Insurance 101.24 110.39ii) Labour Welfare Fund 0.82 0.53

(B)a) Leave Encashment/ Compensated Absence.b) Contribution to Gratuity Funds - Employees Gratuity Fund.

plans is based on the following assumption.

(` in Lacs)i) Actuarial Assumptions:- Leave

Encashment/ Compensated

Absence 31.03.14

LeaveEncashment/

Compensated Absence 31.03.13

Employee Gratuity

Fund 31.03.14

Employee Gratuity

Fund 31.03.13

Discount Rate (per annum) 8.50% 8.00% 8.50% 8.00%Rate of increase in compensation levels 7.50% 7.50% 7.50% 7.50%Rate of return on plan assets. N.A. N.A. 9.40% 9.40%Expected Average remaining working lives of employees (years) 24.12 24.30 24.09 24.30

ii) Change in the obligation during the year ended 31st March,2014Present value obligation as at beginning of the year 1,459.43 1,157.04 2,566.34 2,164.98Interest cost 116.75 92.56 205.31 173.20Past service cost - - - -Current service cost 301.92 330.79 425.11 392.58Curtailment cost - - - -Settlement cost - - - -

(207.12) (140.56) (142.30) (104.43)Actuarial (gain)/ loss on obligations (165.64) 19.60 (100.47) (59.98)Present value obligation as at end of the year 1,505.34 1,459.43 2,954.00 2,566.34

iii) Change in fair value Plan AssetsFair value of plan assets as at beginning of the year - - 922.26 712.08Expected return on plan assets - - 86.69 66.94Contributions - - 180.12 226.50

- - (142.30) (104.43)Actuarial gain/ (loss) on plan assets - - (2.97) 21.17Fair value of plan assets as at end of the year - - 1,043.80 922.26

iv)Obligation and Fair value of AssetsPresent value obligation as at end of the year 1,505.34 1,459.43 2,954.00 2,566.34Fair value of Plan Assets as at end of the year - - 1043.80 922.26Funded status (1,505.34) (1,459.43) (1,910.20) (1,644.08)Present value of unfunded obligation as at end of the year - - - -Excess of actual overestimated - - (2.97) 21.17Unfunded net asset/ (liability) recognised in Balance Sheet. (1,505.34) (1,459.43) (1,910.20) (1,644.08)

54

(` in Lacs)v) Leave

Encashment/ Compensated

Absence 31.03.14

LeaveEncashment/

Compensated Absence 31.03.13

Employee Gratuity

Fund 31.03.14

Employee Gratuity

Fund 31.03.13

Current service cost 301.92 330.79 425.11 392.58Past service cost - - - -Interest cost 116.75 92.56 205.31 173.20Expected return on plan assets - - (86.69) (66.94)Curtailment cost - - - -Settlement cost - - - -Net Actuarial (gain)/ loss recognised during the year (165.64) 19.60 (97.50) (81.15)Paid to left employees - - - -

253.03 442.96 446.23 417.69(Including transfered to capital work in progress)

factors.

NOTE-37Companies (Accounting Standard) Rules,2006 is considered the only business segment.

(` in Lacs)

31.03.2014 31.03.2013

a) Gross revenue of the Company as per geographical segment is as follows :-

Within India 8,85,953.93 7,88,652.18

Outside India (Including export incentives and high sea

bpsl annual report 2014

Documents

directors report

average rate

conservation of energy

directors rules

energy audit

receipt of remuneration

employment designation

present energy consumption