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

1.
S.
No

Name

Designation

Remuneration
(` in Lacs)

3WCNKECVKQP

Age
(Years)

Experience
(Years)

1.

Mr. Sanjay
Singal

Chairman &
Managing
Director

72.00

Graduate

54

34

Date of
commencement
of employment
30.06.2003
(Re-appointed
w.e.f.
30.06.2013)

Nature of Duties Last employment &

designation held
Planning, policy Bhushan Steel Ltd
decision &
Managing
Management
Director
of day to day
working

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

2.
S.
No

Name

Designation

1.

Mr. A. K. Khushu Dy Managing

Director

Remuneration 3WCNKECVKQP Age

Experience Date of
Nature of Duties
(` in Lacs)
(Years) (Years)
commencement
of employment
34.00
B. Tech
63
39
07.09.2014
Project
Implementation
and day to day
working

Last employment &

designation held
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 CONSUMPTION

B.

*
**
***

Electricity
(a) Purchased
Units (No. in Lacs) *
Total Amount (` In Lacs)
Average rate per unit (`)
(b) Own Generation
(i) Through Diesel
Units (No. in Lacs)
Qty (Ltrs in Lacs)
Total Amount (` In Lacs)
Average rate per unit (`)
(ii) Through Steam Turbine
Units Generated Kwh (No in Lacs)**
Coal Quantity (MT in Lacs)
Total Amount (` in Lacs)
Average rate per MT (`)
Average rate (` per unit)
2. Fuel Oil
Qty (Ltrs in Lacs)
Total Amount (` in Lacs)
Average rate per litre (`)
3. LPG Propane Gas
Qty (MT)
Total Amount (` in Lacs)
Average rate per MT (` in Lacs)
CONSUMPTION PER UNIT OF PRODUCTION
Production (MTs)***
Electricity (Unit/MT)
Fuel Oil (Ltrs/MT)
LPG (Kg./MT)
Captive use of electric units (Nos in Lacs)
Capitalized (No. of units in Lacs)
Total Amount capitalized (` in Lacs)

2013-14

2012-13

3,593.22
24,402.87
6.79

4,151.77
27,600.56
6.65

155.66
43.22
2,219.70
14.26

161.90
44.72
1,852.59
11.44

26,025.81
27.08
26,031.58
961.32
1.00

21,602.97
25.15
30,098.31
1,196.95
1.39

219.03
10,216.25
46.64

181.46
6,647.98
36.64

52,295.77
32,064.67
0.61

24,914.51
13,465.74
0.54

91,31,314
303.99
2.40
5.73
24,327.22
317.47
2,110.66

72,34,764
339.58
2.51
3.44
20,721.12
467.08
3,046.39

1.

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 B
RESEARCH & DEVELOPMENT (R & D)

1.

5RGEKECTGCKPYJKEJ4&KUECTTKGFQWVD[VJG%QORCP[ :

At Odisha Plant (CSP unit):

&GXGNQROGPVQHJQVDCPFUHQTRTQFWEKPIWNVTCVJKPEQNFTQNNGFUVTKRTUVVQ
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 :

2.

$GPGVUFGTKXGFCUCTGUWNVQHVJGCDQXG4&

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.

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
GHEKGPV#$$OCMG888(&TKXGU-YJRGT-KNPRQYGTUCXKPIJCFDGGP
achieved.

#NNXGPWODGTU#KT%QORTGUUQT5VCVKQPYGTGLQKPGFKPEQOOQPTKPIJGCFGT
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:

6JG'PGTI[UCXKPIRTQLGEVUKORNGOGPVGFJCUDGPGVGFVJG%QORCP[D[
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

;QWTEQORCP[JCUUWEEGUUHWNN[UGVWRVJGHCEKNKVKGUWPFGTRJCUG8QH1FKUJC
RTQLGEVCJGCFQHUEJGFWNGCEJKGXGFVQVCNKPVGITCVKQP2JCUG8JCUETGCVGF
U[PGTIKGUGHEKGPE[QHRTQFWEVKQPEQUVKPVGITCVKQPQHRTKOCT[UGEQPFCT[
products at one place. Company envisages expansion of market with Phase8+QHVJGRTQLGEVKORNGOGPVCVKQPYJKEJKUKPRTQITGUU

4.

Expenditure on R&D (` in lacs) Capital/Recurring

Recurring. Not segregated

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

TECHNOLOGY ABSORPTION, ADAPTATION & INNOVATION:

1.

Efforts in brief made towards technology, absorption,

adaptation and innovation

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

2.

3.

$GPGVU FGTKXGF CU C TGUWNV QH CDQXG GHHQTVU GI RTQFWEV :

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

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
(KPGU$GPGEKCVKQP2NCPV

LINDE, Germany Technology for Oxygen Plant.

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

enhancement.

%QORCP[FGTKXGFVJGHQNNQYKPIDGPGVUHTQO&4+RNCPVU[UVGO

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

7VKNK\CVKQP QH EJCT RTQFWEGF CU YCUVG HTQO &4+ MKNPU CU C HWGN WKFK\GF DGF
combustion boiler.

7VKNK\CVKQPQHOKFFNKPIQHEQCNYCUJGT[CUCHWGNKPWKFK\GFDGFEQODWUVKQPDQKNGT
as a fuel.

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

Reliability of operation has increased considerably at Kolkata Unit.

8CTKQWUCEVKXKVKGUJCUDGGPEQORNGVGFCV-QNMCVCWPKVHQTEQUVTGFWEVKQPRTQFWEV
development.

+PECUGQHKORQTVVGEJPQNQI[
KORQTVGFFWTKPIVJGNCUV[GCTUTGEMQPGFHTQOVJGDGIKPPKPIQHVJGPCPEKCN[GCTHQNNQYKPIKPHQTOCVKQPOC[DG
furnished.
a.

Technology Imported

The basic engineering of CSP Plant for HR Coil has been given by SMS Siemag,
Germany.
0GEGUUCT[OQFKECVKQPUVQCFQRVVJKUKORQTVGFVGEJPQNQI[HQT+PFKCPEQPFKVKQPUCUYGNN
as for requirement of export market have been carried out indigenously successfully.

4.

Technology from SMS Siemag, Germany imported in year 2005-06

b.

Year of Import

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

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

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
6QCVVCKPCNGXGNYJGTGVJGTGKUPQFGPGFNKOKVHQTITQYVJVQRTQOQVGCYQTMENKOCVGVJCVJCTPGUUVJGDGUVQHJWOCPRQVGPVKCNGPEQWTCIG
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
6JG$QCTFQH&KTGEVQTUEQPUKUVUQHVGP&KTGEVQTUQWVQHYJKEJXG&KTGEVQTUCTG0QP'ZGEWVKXGCPF+PFGRGPFGPV&KTGEVQTU6JG%QORCP[
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
1.
Executive Directors

2.

NonExecutive and Independent Directors

3.

Non Executive Nominee Directors

4.

Non Executive Professional Director

Name of the Director

Mr. Sanjay Singal
Mrs. Aarti Singal
Mr. R. P. Goyal
Mr. R. N. Yadav

0QVG/T#--JWUJWTGUKIPGFYGH/T*%8GTOCTGUKIPGFCU
Whole Time Director but continue to be a Director)
Mr. Anil S Supanekar
Mr. R. D. Batra
Mr. Dinesh Kumar Behal
Mr. S. N. Baheti(Nominee IDBI Bank Ltd)
Mr. Jimmy Mahtani (Investors Nominee Director)
/T*%8GTOC

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.

26

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 Board
Meetings
held

No. of Other Directorship and Committee

Member/Chairmanship

No of Board Attendance Other

Meetings
at last AGM Directorship
attended

Committee
Member

Committee
Chairmanship

Mr. Sanjay Singal

Yes

Mrs.Aarti Singal

No

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

No

--

--

Mr. Anil S. Supanekar

No

--

Mr. Jimmy Mahtani

Nil

No

--

--

Mr. R. P. Goyal

Yes

/T*%8GTOC

No

--

Mr. R. N. Yadav

Nil

No

--

--

Mr. R. D. Batra

No

--

10

Mr. Dinesh Kumar Behal

Yes

11.

Mr. Melwyn Rego

Withdrawal of Nomination
w.e.f 30.08.2013

Nil

No

--

--

12

Mr. A. K. Khushu
Resigned w.e.f 20.05.2014

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
QPVJG$QCTF6JGRTGUGPVEQOOKVVGGEQPUVKVWVKQPEQPTOVJGTGSWKTGOGPVUQH5GEVKQPQHVJG%QORCPKGU#EV
EQTTGURQPFKPI
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: -

C

1XGTXKGYVJG%QORCP[UPCPEKCNTGRQTVKPIRTQEGUUCPFVJGFKUENQUWTGUOCFGKPVJGPCPEKCNUVCVGOGPVUVQGPUWTGVJGKTEQTTGEVPGUU
dependability and accuracy.

D

4GEQOOGPFKPIVJGCRRQKPVOGPVCPFTGOQXCNQHVJGCWFKVQTUZCVKQPQHCWFKVHGGCPFCNUQCRRTQXCNHQTRC[OGPVHQTCP[QVJGTUGTXKEGU

E

4GXKGYKPI VJG CPPWCN PCPEKCN UVCVGOGPVU DGHQTG VJG UCOG CTG RNCEGF DGHQTG VJG $QCTF DCUKECNN[ KP VJG HQNNQYKPI CTGCU
K CP[
change in the accounting policies and practices and its effect on Companys working, (ii) major accounting entries based on exercise
QHLWFIGOGPVD[OCPCIGOGPV
KKKSWCNKECVKQPKPFTCHV#WFKV4GRQTV
KXKORQTVCPVCPFUKIPKECPVCFLWUVOGPVUCTKUKPIQWVQHCWFKV
(v) the going concern assumption, (vi) compliance with all applicable accounting standards and (vii) compliance with legal requirements
EQPEGTPKPIYKVJPCPEKCNUVCVGOGPVU

d.

Any related party transactions i.e. transactions of the Company of material nature with promoters or the management, their subsidiaries
QTTGNCVKXGUGVEVJCVJCXGRQVGPVKCNEQPKEVYKVJVJGKPVGTGUVQHVJG%QORCP[CVNCTIG

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.

27

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
CPFEQORTKUGUQH
K/T4&$CVTC
KK/T*%8GTOC
KKK/T40;CFCXCPF
KX/T&KPGUJ-WOCT$GJCN&KTGEVQTUQHVJG
Company. Independent Director Mr. R. D. Batra is the Chairman of the Committee. The Committee has been constituted inter alia
HQTCNNQVOGPVCRRTQXKPIVTCPUHGTCPFVTCPUOKUUKQPQHUJCTGUKUUWGQHFWRNKECVGUJCTGEGTVKECVG
UEQPUQNKFCVKQPCPFUWDFKXKUKQP
QHUJCTGEGTVKECVG
UQHHGTCPFKUUWGUGEWTKVKGUCPFVQFQCNNTGNCVGFOCVVGTUPGEGUUCT[KPEKFGPVCNVJGTGVQCPFUWIIGUVCPFOQPKVQT
measures to improve investors grievances. During the year under report, seven meetings of the Committee was held. Mr R.K. Gupta,
2TGUKFGPV%QORCP[5GETGVCT[KUVJG%QORNKCPEG1HEGT6JGVGTOUQHTGHGTGPEGVJGEQOOKVVGGJCUDGGPCOGPFGFD[VJG$QCTF

(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

6JGEQOOKVVGGEQORTKUGU
K/T5CPLC[5KPICN
KK/T42)Q[CN
KKK/T*%8GTOCCPF
KX/T4&$CVTC&KTGEVQTUQHVJG%QORCP[
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
FGUKIPCVGF/T4-)WRVC2TGUKFGPV%QORCP[5GETGVCT[CUVJG%QORNKCPEG1HEGT

9.

REMUNERATION COMMITTEE
6JG%QOOKVVGGJCUDGGPEQPUVKVWVGFHQTZCVKQPQHTGOWPGTCVKQPQHVJG'ZGEWVKXG&KTGEVQTUQHVJG%QORCP[6JGVGTOUQHTGHGTGPEGQHVJG
%QOOKVVGGJCUDGGPCOGPFGFD[VJG$QCTF6JG%QOOKVVGGTGXKGYUVJG%QORCP[URQNKE[QPURGEKETGOWPGTCVKQPRCEMCIG2TGUGPVN[VJG
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
QTQVJGTYKUGHQTVJGRNCPVUQHVJG%QORCP[6JG%QOOKVVGGCVRTGUGPVEQORTKUGU
K/T5CPLC[5KPICN
KK/T*%8GTOCCPF
KKK/T42
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.

2011-12

4th Floor, Tolstoy House, 15-17,

Tolstoy Marg, Connaught Place, New Delhi

17.09.2012

2.30 P. M.

2012-13

4th Floor, Tolstoy House, 15-17,

Tolstoy Marg, Connaught Place, New Delhi

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.

28



C

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2TQOQVGTUVJG&KTGEVQTUQTVJG/CPCIGOGPVVJGKTUWDUKFKCTKGUQTTGNCVKXGUGVEVJCVOC[JCXGRQVGPVKCNEQPKEVYKVJVJG
interest of the Company at large.

6JGTGYCUPQOCVGTKCNN[UKIPKECPVVTCPUCEVKQPYKVJTGNCVGFRCTVKGUYJKEJYCUKPEQPKEVYKVJVJGKPVGTGUVQHVJG%QORCP[GZEGRVCU
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.

X

5JCTG%GTVKECVGU5JCTGEGTVKECVGUCTGCNUQKPRJ[UKECNHQTO

(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

FII

5.53

Total
(viii)






(ix)


100.00

Location of Plants:
a.

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

D

8KNNCIG*CTKRWT-JWTC#ODCNC%JCPFKICTJ4QCF&GTC$CUUK&KUVV/QJCNK
2WPLCD

c.

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

F

8KNNCIG6JGNMQNQKCPF&JWDGPEJCRRGT6GJUKN4GPICNK&KUVV5CODCNRWT1FKUJC

e.

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

Customer Service Centre

$GUKFGUUCNGUQHEGUCNNQXGT+PFKC%QORCP[JCUHQNNQYKPIEWUVQOGTUGTXKEGEGPVGTVQOGGVVJGURGEKETGSWKTGOGPVUQHVJGEWUVQOGTU
and OEMs.
a.

Aurangabad, Pune, Nasik

(Maharashtra)

b.

Pantnagar

(Uttrakhand)

c.

Hosur

(Tamil Nadu)

d.

Ludhiana

(Punjab)

e.

Manesar, Faridabad

(Haryana)

29

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
+PFKCEQPUVCPVN[VCMKPIUVGRUVQMGGRVJGHQTGKIPGZEJCPIGWEVWCVKQPUWPFGTEQPVTQNCPFUVTGPIVJVJG+PFKCPEWTTGPE[/KPKPIRQNKEKGUCTGGZRGEVGF
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,
JQYGXGT KP VGTOU QH KPHTCUVTWEVWTG  EQPUVTWEVKQP OQUV EQWPVTKGU QVJGT VJCP %JKPC UEQTGF OWEJ NQYGT  #U VJG VQVCN PCPEKPI QH VJG GPXKUCIGF
infrastructure investment in India is beyond the means of the government , an enabling environment for the private corporate sector and FDI capital
KPQYPGGFUVQDGETGCVGF
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
/6CPKPETGCUGQH*QVOGVCNRTQFWEVKQPYCU/6CPKPETGCUGQHQXGTNCUV[GCT6QVCNPKUJGFUVGGNRTQFWEVKQPHQTUCNGYCU
/6TGEQTFKPIKPVGTGUVQH'ZRQTVQHVQVCNPKUJGFUVGGNTGCEJGF/6WRD[+ORQTVQHVQVCNPKUJGFUVGGNYCU/6FGENKPG
QH+PFKCYCUCPGVGZRQTVGTQHVQVCNPKUJGFUVGGN
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
TQCFPGVYQTMCPFUKORNKGFCPFVTCPURCTGPVRQNKE[OGEJCPKUOVJGTGD[FQKPICYC[YKVJCRNGVJQTCQHEQOOKVVGGUCPFUWDEQOOKVVGGUYKVJCXKGY
VQURGGFKN[UCPEVKQPRTQLGEVUCPFENGCTUVCNNGFRTQLGEVU5WEJUVGRUQHVJG)QXVYKNNOCMGCUKIPKECPVRQUKVKXGKORCEVQPVJGWPEGTVCKPDWUKPGUU
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
RTQFWEVKQPYJKNGUJCTGQHVQVCNPKUJGFUVGGNRTQFWEVKQPD[257UYCUCUEQORCTGFVQD[RTKXCVGUGEVQT
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,
EQPVTKDWVGFRTKOCTKN[HQTVJGRTKXCVGUGEVQTCTQWPFQHVQVCNQWVRWV6QVCNPKUJGFUVGGNRTQFWEVKQPHQTUCNGYCU/6D[KPETGCUGQH
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
PQPCVRTQFWEVU2TQFWEVKQPHQTUCNGQH$CTCPFTQFUYCU/6WRD[JQVTQNNGFEQKNU/6CPKPETGCUGQHEQNFTQNNGFEQKNUYCU
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

30

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


)QXVHQEWUGUQPTCVKQPCNK\KPIVJG#EVIQXGTPKPIUVGGNKPFWUVT[CPFOKPGUCPFNCPFCESWKUKVKQP

)QXVRTKQTKVKGUKPHTCUVTWEVWTGFGXGNQROGPVYKVJURGGF[ITQYVJ

'PEQWTCIKPIRWDNKERTKXCVGRCTVPGTUJKRKPGZGEWVKQPQHRTQLGEVU

0CVKQPCN5VGGN2QNKE[CKOKPICVJKIJGTRTQFWEVKQPXK\CXK\JKIJGTEQPUWORVKQP2QNKE[JCUGPXKUCIGFVCTIGVQHOKNNKQPVQPUD[

.KDGTNKUKPI(&+PQTOCPFGPEQWTCIKPIECRKVCNOCTMGV

%JKPCCPF#HTKECPEQWPVTKGUCTGHQEWUKPIOQTGQPKPHTCUVTWEVWTGFGXGNQROGPVCPFCTGCNUQYKVPGUUKPIUVTQPIKPVGTPCNFGOCPF

4CVKQPCNK\CVKQPQHVCZCVKQPDQVJFKTGEVQTCPFKPFKTGEV

5VTQPIFQOGUVKEFGOCPFUWRRN[ICRKUEWTTGPVN[OGVVJTQWIJKORQTVU

'ZRGEVGFKPETGCUGKPRGTECRKVCNEQPUWORVKQPQHUVGGNKP+PFKCCUEQORCTGFVQYQTNFEQPUWORVKQP

+PFKCKUNCTIGUVRTQFWEGTQHURQPIGKTQPKPVJGYQTNFYKVJEQCNDCUGFTQWVGCEEQWPVKPIHQTQHVQVCNRTQFWEVKQP

2GTECRKVCKPEQOGDQWPFVQKPETGCUG

Threats


4KUKPIEQUVQHKPRWVEQWRNGFYKVJUECTEKV[KPUWRRN[

+TCSETKUKUCHHGEVKPIUWRRN[QHQKN

+ORCEVQHNCPFCESWKUKVKQP#OGPFOGPV#EV

8QNCVKNKV[TKUKPIKORQTVDKNNQHETWFGQKNKPKPVGTPCVKQPCNOCTMGV

8QNCVKNKV[KPRTKEGUQHKPRWVEQUVUVGGNRTKEGUKPKPVGTPCVKQPCNUEGPCTKQFWGVQWPGZRGEVGFKPVGTPCVKQPCNGXGPVU

8QNCVKNKV[KPHQTGKIPGZEJCPIGEWTTGPE[9GCMTWRGGCICKPUV75&

$WQ[CPVFWGVQUVTQPIITQYVJKPFGOCPF

4GEGUUKQPCT[VTGPFKPGTQ\QPGCPFFGDVETKUGUQH)TGGM

COMPANYS PROSPECTS
9KVJVJGHCEKNKVKGUWPFGT2JCUG8RWVVQVTKCNTWP[QWT%QORCP[YKNNJCXGWPKSWGKPVGITCVGFUVGGNEQORNGZJCXKPIVQVCNKPVGITCVKQPQHRTKOCT[UVGGN
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,
9KTGUCPFDTKIJVDCTU%QORCP[JCUKPKVKCVGFHCEKNKVKGUWPFGT2JCUG8+HQTGZRCPUKQPCPFUJCNNCEJKGXGECRCEKV[QH/62#
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
QHRTQFWEVKQPCPFKPETGCUGKPRTQVCDKNKV[4QJPG%QCN$NQEMKPVJG5VCVGQH,JCTMJCPFYKNNUWRRNGOGPVVQOGGVVJGEQCNFGOCPFQHVJG%QORCP[
further enhancing the self-reliance.
Allocation of Patal (E) coal block and Chatuburu Iron Ore Mines in the State of Jharkhand to the Company for its proposed Integrated Steel & Power
Project will further make the Company truly integrated. 1,000 MW Power project in the State of Chhattisgarh is envisaged for uninterrupted supply
of Power.
FINANCIAL OPERATIONAL PERFORMANCE
Term Lending
During the year under review, Company has availed Term Loan of Rs.186 Crore, out of sanctioned Rupee Term Loan of Rs. 3,250 Crore, ECA of
4U%TQTGQWVQHUCPEVKQPGF'%#QH4U%TQTGHTQO$C[GTP.$HQT1FKUJC2JCUG82TQLGEV
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

)GTOCP[&GWVUEJG$CPM5R#
+VCN[CPF+PVGUC5CPRCQNQ5R#
*QPIMQPIHQT1FKUJC2JCUG8+2TQLGEV
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.

31

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
VJG%QORCP[VQCEJKGXGQRGTCVKQPCNGHEKGPE[CEEWTCE[EQORNKCPEGQHRQNKEKGUCPFRTQEGFWTGUNCYCPFTGIWNCVKQPUCPFENQUGOQPKVQTKPI6JG
exercise is carried out across all locations of the Company. This ensures the control and safeguard of the Companys assets against loss through
KPGHEKGPE[YCUVGPGINKIGPEGQTHTCWF+PVGTPCN#WFKVHWPEVKQPKPIKUTGIWNCTN[TGXKGYGFD[VJG#WFKV%QOOKVVGG#HQNNQYWRCWFKVKUECTTKGFQWVVQ
review the progress on recommendation, if any, made.
%QUV#WFKVKUEQPFWEVGFGXGT[[GCTKPCEEQTFCPEGYKVJ%QUV#WFKV4WNGUTGNCVKPIVQUVGGNRNCPVYJKEJHWTVJGTGPJCPEGUNGXGNQHQRGTCVKQPCNGHEKGPE[
and cost control
CONTINGENT LIABILITIES
&GVCKNUQHEQPVKPIGPVNKCDKNKVKGUCTGUVCVGFKPPQVGUVQ$CNCPEG5JGGVCPF5VCVGOGPVQH2TQVCPF.QUU
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 Report

TO THE MEMBERS OF BHUSHAN POWER & STEEL LIMITED
1)


2)


3)



4)




5)




Report on the Financial Statements

9GJCXGCWFKVGFVJGCEEQORCP[KPIPCPEKCNUVCVGOGPVUQHVJG$JWUJCP2QYGT5VGGN.KOKVGFYJKEJEQORTKUGVJG$CNCPEG5JGGVCUCV
31st/CTEJVJG5VCVGOGPVQH2TQVCPF.QUUCPFVJGECUJQYUVCVGOGPVHQTVJG[GCTGPFGFCPFCUWOOCT[QHUKIPKECPVCEEQWPVKPI
policies and other explanatory information.
Managements Responsibility for the Financial Statements
/CPCIGOGPVKUTGURQPUKDNGHQTVJGRTGRCTCVKQPQHVJGUGPCPEKCNUVCVGOGPVUVJCVIKXGCVTWGCPFHCKTXKGYQHVJGPCPEKCNRQUKVKQPPCPEKCN
RGTHQTOCPEGCPFECUJQYUQHVJGEQORCP[KPCEEQTFCPEGYKVJCEEQWPVKPIRTKPEKRNGUIGPGTCNN[CEEGRVGFKP+PFKCKPENWFKPI#EEQWPVKPI5VCPFCTFU
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
CPFOCKPVGPCPEGQHKPVGTPCNEQPVTQNTGNGXCPVVQVJGRTGRCTCVKQPQHVJGPCPEKCNUVCVGOGPVUVJCVCTGHTGGHTQOOCVGTKCNOKUUVCVGOGPVYJGVJGT
due to fraud or error.
Auditors Responsibility
1WTTGURQPUKDKNKV[KUVQGZRTGUUCPQRKPKQPQPVJGUGPCPEKCNUVCVGOGPVUDCUGFQPQWTCWFKV9GEQPFWEVGFQWTCWFKVKPCEEQTFCPEGYKVJ
the Standards on Auditing issued by the Institute of Chartered Accountants of India. Those Standards require that we comply with ethical
TGSWKTGOGPVUCPFRNCPCPFRGTHQTOVJGCWFKVVQQDVCKPTGCUQPCDNGCUUWTCPEGCDQWVYJGVJGTVJGPCPEKCNUVCVGOGPVUCTGHTGGHTQOOCVGTKCN
misstatement.
#PCWFKVKPXQNXGURGTHQTOKPIRTQEGFWTGUVQQDVCKPCWFKVGXKFGPEGCDQWVVJGCOQWPVUCPFFKUENQUWTGUKPVJGPCPEKCNUVCVGOGPVU6JGRTQEGFWTGU
UGNGEVGFFGRGPFQPVJGCWFKVQTULWFIGOGPVKPENWFKPIVJGCUUGUUOGPVQHVJGTKUMUQHOCVGTKCNOKUUVCVGOGPVQHVJGPCPEKCNUVCVGOGPVU
whether due to fraud or error. In making those risk assessments, the auditor considers internal controls relevant to the Companys preparation
CPFHCKTRTGUGPVCVKQPQHVJGPCPEKCNUVCVGOGPVUKPQTFGTVQFGUKIPCWFKVRTQEGFWTGUVJCVCTGCRRTQRTKCVGKPVJGEKTEWOUVCPEGUDWVPQVHQTVJG
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
RTGUGPVCVKQPQHVJGPCPEKCNUVCVGOGPVU
9GDGNKGXGVJCVVJGCWFKVGXKFGPEGYGJCXGQDVCKPGFKUUWHEKGPVCPFCRRTQRTKCVGVQRTQXKFGCDCUKUHQTQWTCWFKVQRKPKQP
Opinion
+PQWTQRKPKQPCPFVQVJGDGUVQHQWTKPHQTOCVKQPCPFCEEQTFKPIVQVJGGZRNCPCVKQPUIKXGPVQWUVJGCHQTGUCKFPCPEKCNUVCVGOGPVUIKXGVJG
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/CTEJ
D
KPVJGECUGQHVJG5VCVGOGPVQH2TQVCPF.QUUQHVJGRTQVHQTVJG[GCTGPFGFQPVJCVFCVGCPF
E
KPVJGECUGQHVJG%CUJ(NQY5VCVGOGPVQHECUJQYUHQTVJG[GCTGPFGFQPVJCVFCVG
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
5GEVKQP
#QHVJG#EVYGIKXGKPVJG#PPGZWTGCUVCVGOGPVQPVJGOCVVGTUURGEKGFKPRCTCITCRJUCPFQHVJG1TFGT
(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
RWTRQUGQHQWTCWFKV
b)
In our opinion, proper books of account as required by law have been kept by the Company so far as appears from our
GZCOKPCVKQPQHVJQUGDQQMU

E
6JG$CNCPEG5JGGVCPF5VCVGOGPVQH2TQVCPF.QUUCPFECUJQYUVCVGOGPVFGCNVYKVJD[VJKUTGRQTVCTGKPCITGGOGPVYKVJ
VJGDQQMUQHCEEQWPV

F
+P QWT QRKPKQP VJG $CNCPEG 5JGGV 5VCVGOGPV QH 2TQV CPF .QUU CPF %CUJ (NQY 5VCVGOGPV EQORN[ YKVJ VJG #EEQWPVKPI
Standards referred to in sub-section (3C) of section 211 of the Companies Act, 1956, read with general circular 15/2013 dated
13th5GRVGODGTQHVJGOKPKUVT[QH%QTRQTCVGCHHCKTUKPVJGTGURGEVQHUGEVKQPQHVJGEQORCPKGU#EV
e)
On the basis of the written representation received from the directors as on 31st March, 2014 and taken on record by the Board
QH&KTGEVQTUPQPGQHVJGFKTGEVQTUKUFKUSWCNKGFCUQPst March, 2014 from being appointed as a director in terms of clause

IQHUWDUGEVKQP
QHUGEVKQPQHVJG%QORCPKGU#EV
FOR MEHRA GOEL & CO.
Chartered Accountants
Firm Registration No.: 000517N
Sd/R.K. MEHRA
PARTNER
M.NO.: 6102

Place : New Delhi

Date : 7th July, 2014

33

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

ii)

iii)

iv)

v)

vi)
vii)
viii)

ix)

6JG%QORCP[JCUOCKPVCKPGFRTQRGTTGEQTFUUJQYKPIHWNNRCTVKEWNCTUKPENWFKPISWCPVKVCVKXGFGVCKNUCPFUKVWCVKQPQHZGFCUUGVU1PVJG
DCUKUQHCXCKNCDNGKPHQTOCVKQPKPQWTQRKPKQPVJGZGFCUUGVUEQXGTKPIUKIPKECPVXCNWGJCXGDGGPRJ[UKECNN[XGTKGFD[VJGOCPCIGOGPVCV
TGCUQPCDNGKPVGTXCNUJCXKPITGICTFVQVJGUK\GQHVJG%QORCP[CPFVJGPCVWTGQHKVUZGFCUUGVU#UKPHQTOGFVQWUPQOCVGTKCNFKUETGRCPEKGU
YGTGPQVKEGFQPUWEJXGTKECVKQP0QUWDUVCPVKCNRCTVQHZGFCUUGVUJCUDGGPFKURQUGFQHHFWTKPIVJG[GCTYJKEJOC[CHHGEVVJGIQKPI
concern status of the company.
In our opinion and according to the information and explanations given to us, the inventories of the Company in its possession have been
RJ[UKECNN[XGTKGFD[VJGOCPCIGOGPVCVTGCUQPCDNGKPVGTXCNU5VQEMUKPRQUUGUUKQPCPFEWUVQF[QHVJKTFRCTVKGUCPFUVQEMUKPVTCPUKVCUQP
31st/CTEJJCXGDGGPXGTKGFD[VJGOCPCIGOGPVYKVJTGICTFVQEQPTOCVKQPQTUVCVGOGPVQHCEEQWPVQTEQTTGURQPFGPEGQHVJGVJKTF
RCTVKGUQTUWDUGSWGPVTGEGKRVQHIQQFU6JGRTQEGFWTGQHRJ[UKECNXGTKECVKQPQHKPXGPVQTKGUQHVJG%QORCP[HQNNQYGFD[VJG/CPCIGOGPVKU
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
XGTKECVKQPCUEQORCTGFVQDQQMTGEQTFU
In our opinion and according to the information and explanations given to us, the Company has not taken/granted any loans, secured or
WPUGEWTGFHTQOVQ%QORCPKGUTOUQTQVJGTRCTVKGUNKUVGFKPVJG4GIKUVGTOCKPVCKPGFWPFGT5GEVKQPQHVJG%QORCPKGU#EVFWTKPI
the year.
In our opinion and according to the information and explanations given to us, there are adequate internal control procedures commensurate
YKVJVJGUK\GQHVJG%QORCP[CPFVJGPCVWTGQHKVUDWUKPGUUHQTVJGRWTEJCUGQHKPXGPVQT[ZGFCUUGVUCPFYKVJTGICTFVQUCNGQHIQQFUCPF
services. During the course of our audit, we have not observed any continuing failure to correct major weakness in such internal controls.
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.
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.
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.
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.
According to the information and explanations given to us, in respect of statutory dues:
a)

b)
c)

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.
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.
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

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

Nature of dues
Demand

Net of amount paid Period to which Forum where dispute is pending

(` in Lacs)
amount related
179.27
2003-04 &
Sales Tax Tribunal (Cuttack)
2005-06

Demand
Demand
Demand

487.43
56.57
11.70

Demand

113.26

Demand

79.95

Demand

5790.58

2006-07
2012-13
2006-07 to
2008-09
2010-11 to
2011-12
2006-07,
2008-09 &
2009-10
2006-07 to
2007-08,
2009-10 &
2010-11

34

High Court ,Cuttack

Add.Commissioner Sales Tax (Sambalpur)
D.C.S.T. ,Berhampur
D.C.S.T.(Appeal) Sambalpur
Add.Commissioner Sales Tax (Cuttack)

Addl. Commissioner, Commercial Sales Tax, West Bengal

Nature of the statute

Nature of dues
Demand
Penalty
Penalty
Penalty
Demand
Demand

Central Excise Act,1944

Penalty
Additional
Demand
Demand

Service Tax

Service Tax

Income tax

Demand

Orissa Entry Tax Act

Demand

Net of amount paid Period to which Forum where dispute is pending

(` in Lacs)
amount related
130.49
2006-07
4GXKUKQP NNGF DGHQTG 9GUV $GPICN EQOOKUUKQP VCZGU CRRGNNCVG 
revisional board.
0.66
2009-10
E.T.O. (M.W.), Belongi
13.21
2007-08 &
D.E.T.C (Patiala)
2013-14
1.35
2007-08
A.E.T.C (M.W) Punjab
1260.43
2006-07 to
Punjab & Haryana High Court, Chandigarh
2009-10
10.18
2005-06 to
Joint Commissioner, Pune
2006-07
6.13
2012-13
Appellate Authority, Indore
516.98
2003-04 to
High Court, Delhi
2005-06
13791.26
2000-01,
CESTAT, Kolkata
2003-04 &
2007-08 to
2011-12
10.93
2005-06 to
CESTAT, Kolkata
2009-10
2526.48
1998-99 to
Punjab & Haryana High Court, Chandigarh
2000-01 &
2003-04 to
2006-07
30.32
2003-04
Income tax Appellate Tribunal

Z

6JG%QORCP[JCUPQDTQWIJVHQTYCTFNQUUGUCPFJCUPQVKPEWTTGFCP[ECUJNQUUGUFWTKPIVJGPCPEKCN[GCTCPFKPVJGKOOGFKCVG
RTGEGFKPIPCPEKCN[GCT
xi)
In our opinion, the company has not defaulted in repayment of dues to Financial Institutions or Banks or Debenture holders.
ZKK 1PVJGDCUKUQHXGTKECVKQPQHCEEQWPVUCPFTGEQTFUOCKPVCKPGFD[VJG%QORCP[CPFVQVJGDGUVQHQWTMPQYNGFIGDGNKGHVJG
Company has not granted any loans and advances on the basis of security by way of pledge of shares, debentures and other
securities.
ZKKK +PQWTQRKPKQPVJG%QORCP[KUPQVCEJKVHWPFQTCPKFJKOWVWCNDGPGVHWPFUQEKGV[
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/R.K. MEHRA
PARTNER
M.NO.: 6102

Place : New Delhi

Date : 7th July, 2014

35

Balance Sheet
As at 31st March, 2014

(` in Lacs)
I.

NOTE

31.03.2014

31.03.2013

EQUITY AND LIABILITIES

(1) Shareholders Funds
(a) Share Capital
(b) Reserves and Surplus

2
3

23,664.66
7,87,862.54
8,11,527.20

20,133.37
6,07,224.50
6,27,357.87

(2)
(a)
(b)
(c)
(d)

Non Current Liabilities

Long Term Borrowings
Deferred Tax Liabilities (Net)
Other Long Term Liabilities
Long Term Provisions

4
5
6
7

22,40,883.92
1,40,083.09
1,18,827.04
2,871.61
25,02,665.66

17,99,710.13
1,10,083.09
2,06,616.44
2,834.78
21,19,244.44

(3)
(a)
(b)
(c)
(d)

Current Liabilities
Short Term Borrowings
Trade Payables
Other Current Liabilities
Short Term Provisions

8
9
10
11

4,98,542.40
1,34,693.35
2,45,352.18
7,335.93
8,85,923.86

4,86,033.14
91,191.09
2,29,117.99
2,719.83
8,09,062.05

42,00,116.72

35,55,664.36

22,98,168.77
1,802.10
10,57,831.41
33,57,802.28
12,206.96
1,60,727.54
1,976.55
1,74,911.05

13,74,227.03
114.62
14,19,398.16
1,493.44
27,95,233.25
12,206.96
1,13,163.63
3,379.30
1,28,749.89

949.09
3,18,211.29
1,62,436.69
17,604.26
1,68,105.30
96.76
6,67,403.39

2,122.06
1,99,271.45
1,71,840.61
73,365.32
1,85,081.78
6,31,681.22

42,00,116.72

35,55,664.36

TOTAL
II. ASSETS
(1) Non Current Assets
(a) Fixed Assets
(i) Tangible Assets
(ii) Intangible Assets
(iii) Capital Work In Progress
(iv) Intangible Assets Under Development

12

(b) Non-Current Investment

(c) Long-Term Loans and Advances
(d) Other Non-Current Assets

13
14
15

(2) Current Assets

(a) Current Investment
(b) Inventories
(c) Trade Receivables
(d) Cash & Bank Balances
(e) Short-Term Loans & Advances
(f) Other Current Assets

16
17
18
19
20
21

TOTAL
5KIPKECPV#EEQWPVKPI2QNKEKGU
Notes forming part of Accounts

1
2 to 45

As per our report of even date attached

FOR MEHRA GOEL & CO.
Chartered Accountants
Firm Registration No. : 000517N
Sd/(R.K. MEHRA)
PARTNER
M. NO.: 6102

Sd/(SANJAY SINGAL)
CHAIRMAN & MANAGING DIRECTOR

Sd/(R. P. GOYAL)
WHOLE TIME DIRECTOR

Sd/(ARUN K. AGRAWAL)
CHIEF FINANCIAL OFFICER

Sd/(AMARJEET SHARMA)
':'%76+8'&+4'%614
Sd/(R.K. GUPTA)
PRESIDENT &
COMPANY SECRETARY

Place : New Delhi

Date : 07th July, 2014

36

5VCVGOGPVQH2TQVCPF.QUU
(QTVJG[GCTGPFGFst March, 2014

(` in Lacs)
NOTE

31.03.2014

31.03.2013

11,08,899.63

9,34,300.65

19,970.12

17,446.54

11,28,869.75

9,51,747.19

I. REVENUE FROM OPERATIONS

Sale of Products
Other Operating Income
Gross Revenue From Operations

22

Less: Excise Duty

Net Revenue From Operations
II. OTHER INCOME

23

III. TOTAL REVENUE (I + II)

91,033.60

84,771.06

10,37,836.15

8,66,976.13

318.51

526.98

10,38,154.66

8,67,503.11

4,65,069.60

4,29,851.78

33,238.10

29,165.64

IV. EXPENSES
Cost of Raw Materials Consumed

24

Purchases of Traded Stock

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

25

(353.23)

(26,879.22)

'ORNQ[GG$GPGVU'ZRGPUGU

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

9,44,605.78

7,79,810.63

93,548.88

87,692.48

Total Expenses
V. PROFIT BEFORE TAX (III-IV)
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

63,548.88

57,192.48

Basic

32.78

29.52

Diluted

26.33

25.63

PROFIT AFTER TAX

Earnings per share (Nominal value of share ` 10)

39

5KIPKECPV#EEQWPVKPI2QNKEKGU

Notes forming part of Accounts

2 to 45

As per our report of even date attached

FOR MEHRA GOEL & CO.
Chartered Accountants
Firm Registration No. : 000517N
Sd/(R.K. MEHRA)
PARTNER
M. NO.: 6102

Sd/(SANJAY SINGAL)
CHAIRMAN & MANAGING DIRECTOR

Sd/(R. P. GOYAL)
WHOLE TIME DIRECTOR

Sd/(ARUN K. AGRAWAL)
CHIEF FINANCIAL OFFICER

Sd/(AMARJEET SHARMA)
':'%76+8'&+4'%614
Sd/(R.K. GUPTA)
PRESIDENT &
COMPANY SECRETARY

Place : New Delhi

Date : 07th July, 2014

37

Cash Flow Statement

(QTVJG[GCTGPFGFst March, 2014

(` in Lacs)

(A) CASH FLOW FROM OPERATING ACTIVITIES:

0GV2TQVDGHQTGVCZCPFGZVTCQTFKPCT[KVGOU
Adjustments for :
Depreciation
2TQXKUKQPUHQT4GVKTGOGPV$GPGVU
Interest & Financial Charges
Interest Income
2TQV.QUUQP5CNG&KUECTFGFQH(KZGF#UUGVU
2TQVNQUUQP5CNGQH+PXGUVOGPV
Diminution write back
Diminution in Investment
Dividend Received
Provision for Doubtful Debts
Exchange Fluctuation
1RGTCVKPI2TQV$GHQTG9QTMKPI%CRKVCN%JCPIGU
Adjustments for :
Inventories
Trade & Other Receivables
Trade Payables
Cash Generated from Operations
Less : Taxes Paid (Net of Refund)
Net Cash From Operating Activities
(B) CASH FLOW FROM INVESTING ACTIVITIES
Purchase of Fixed Assets/Capital Expenditure
Sale / Refund of Fixed Assets
Purchase of Investment
2TQVNQUUQP5CNGQH+PXGUVOGPV
Dividend Received
Interest Income Received
Net Cash Used In Investing Activities
(C) CASH FLOW FROM FINANCING ACTIVITIES
Proceeds from Issue of Share Capital
Long-Term Borrowings (Net)
Short-Term Borrowings (Net)
Inter Corporate Deposits
Interest & Financial Charges Paid
Dividend Paid
Dividend Tax Paid
Net Cash Flow From / (used in) Financing Activities
Net Increase in Cash and Cash Equivalents
Opening Balances of Cash and Cash Equivalents
Closing Balances of Cash and Cash Equivalents
(including balance in dividend account)

87,838.27
312.03
1,48,116.32
(4,313.42)
(15.16)
(141.40)
5.53
(2.77)
39.36
(1,983.37)

(1,15,778.12)
28,884.63
58,929.34

31.03.2014

31.03.2013

93,548.88

87,692.48

2,29,855.39
3,23,404.27

74,655.12
493.58
1,11,702.09
(3,536.71)
(274.87)
(19.46)
(3.77)
296.48
(24.26)
184.80
(292.06)

(22,681.40)
(1,19,268.96)
1,265.87

1,83,180.94
2,70,873.42

(1,40,684.48)
1,30,188.94
17,272.90
1,12,916.04

(A)

(27,964.15)
2,95,440.12
19,700.00
2,75,740.12

(B)

(5,50,353.47)
2,294.71
2,540.06
141.40
2.77
4,313.42
(5,41,061.11)

(5,86,895.29)
1,324.36
(1,451.42)
19.46
24.26
3,209.61
(5,83,769.02)

1,20,787.38
4,05,026.17
11,507.78
(3,544.31)
(3,24,050.17)
(142.66)
(24.25)
2,09,559.94
(55,761.06)
73,365.32
17,604.26

24,379.75
5,47,983.81
1,20,926.10
(2,655.98)
(2,32,346.89)
(96.97)
(16.48)
4,58,173.34
(12,679.64)
86,044.96
73,365.32

(C)
(A+B+C)

As per our report of even date attached

FOR MEHRA GOEL & CO.
Chartered Accountants
Firm Registration No. : 000517N
Sd/(R.K. MEHRA)
PARTNER
M. NO.: 6102

Sd/(SANJAY SINGAL)
CHAIRMAN & MANAGING DIRECTOR

Sd/(R. P. GOYAL)
WHOLE TIME DIRECTOR

Sd/(ARUN K. AGRAWAL)
CHIEF FINANCIAL OFFICER

Sd/(AMARJEET SHARMA)
':'%76+8'&+4'%614
Sd/(R.K. GUPTA)
PRESIDENT &
COMPANY SECRETARY

Place : New Delhi

Date : 07th July, 2014

38

NOTE-1 SIGNIFICANT ACCOUNTING POLICIES

i)

BASIS OF PREPARATION OF FINANCIAL STATEMENTS

(a)

Basis of Accounting:

6JGPCPEKCNUVCVGOGPVUJCXGDGGPRTGRCTGFKPCEEQTFCPEGYKVJ)GPGTCNN[#EEGRVGF#EEQWPVKPI2TKPEKRNGU
)##2KP
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:

6JGRTGRCTCVKQPQHPCPEKCNUVCVGOGPVUKPEQPHQTOKV[YKVJ)GPGTCNN[#EEGRVGF#EEQWPVKPI2TKPEKRNGU
)##2KP+PFKC
requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and
VJGFKUENQUWTGUQHEQPVKPIGPVNKCDKNKVKGUQPVJGFCVGQHPCPEKCNUVCVGOGPVUCPFTGRQTVGFCOQWPVUQHKPEQOGCPFGZRGPUGU
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

(KZGF#UUGVUCTGUVCVGFCVEQUVPGVQH8#6/1&8#6%'08#6NGUUCEEWOWNCVGFFGRTGEKCVKQP6JGEQUVUEQORTKUGU
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.

5WDUGSWGPVGZRGPFKVWTGTGNCVGFVQCPKVGOQHZGFCUUGVKUCFFGFVQKVUDQQMXCNWGQPN[KHKVKPETGCUGUVJGHWVWTGDGPGVU
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.

/CEJKPGT[URCTGUVJCVECPDGWUGFQPN[KPEQPPGEVKQPYKVJCPKVGOQHZGFCUUGVCPFVJGKTWUGKUGZRGEVGFVQDGKTTGIWNCT
are capitalized. Replacement of such spares is charged to revenue. Capital expenditure on assets not owned by the
EQORCP[YKVJGZENWUKXGTKIJVVQWUGKUTGGEVGFKPECRKVCNYQTMKPRTQITGUUVKNNVJGRGTKQFQHEQORNGVKQPCPFVJGTGCHVGTKP
ZGFCUUGVU

(b)

Assets in the course of construction

#UUGVUKPVJGEQWTUGQHEQPUVTWEVKQPCTGTGGEVGFKPECRKVCNYQTMKPRTQITGUU#VVJGRQKPVYJGPCUCUUGVKUQRGTCVKPI
CVOCPCIGOGPVUKPVGPFGFWUGVJGEQUVQHEQPUVTWEVKQPKUVTCPUHGTTGFVQCRRTQRTKCVGECVGIQT[QHZGFCUUGVU%QUVU
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 knowhow / 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
QHVJGUCKFRNCPVHCEKNKV[CPFCOQTVK\GFQPRTQTCVCDCUKUQXGTCRGTKQFQHXG[GCTU%QORWVGTUQHVYCTGKUECRKVCNKUGF
QPVJGFCVGQHKPUVCNNCVKQPCPFKUCOQTVKUGFQPRTQTCVCDCUKUQXGTCRGTKQFQHXG[GCTU

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
JKIJGTQHKVUPGVUGNNKPIRTKEGCPFXCNWGKPWUG#PKORCKTOGPVNQUUKUTGEQIPK\GFKPVJG5VCVGOGPVQH2TQVCPF.QUUYJGPGXGT
the carrying amount of an asset/cash generating unit exceeds its recoverable amount.

iv)

DEPRECIATION

&GRTGEKCVKQPQPZGFCUUGVUKURTQXKFGFQPUVTCKIJVNKPGOGVJQFCVVJGTCVGUCPFKPVJGOCPPGTRTGUETKDGFKP5EJGFWNG:+8VQ
the Companies Act, 1956.

1PKPETGOGPVCNFGETGOGPVCNEQUVCTKUKPIQPCEEQWPVQHVTCPUNCVKQPQHHQTGKIPEWTTGPE[NKCDKNKVKGUHQTCESWKUKVKQPQHZGFCUUGVU
depreciation has been provided as aforesaid over the residual life of the respective plants.

39

%CRKVCNGZRGPFKVWTGQPCUUGVUPQVQYPGFD[VJGEQORCP[YKVJGZENWUKXGTKIJVVQWUGKUCOQTVK\GFQXGTCRGTKQFQHXG[GCTU
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
OQTG&GRTGEKCVKQPQPZGFCUUGVUEQUVKPIWRVQ` 5,000/- is charged @ 100% on pro-rata basis.

v)

REVENUE/EXPENDITURE RECOGNITION

4GXGPWGKUTGEQIPK\GFYJGPKVECPDGTGNKCDN[OGCUWTGFCPFYJGPCNNUKIPKECPVTKUMUCPFTGYCTFUQYPGTUJKRCTGVTCPUHGTTGF
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
CPFCOQTVK\GFKPVJG5VCVGOGPVQH2TQVCPF.QUUQXGTVJGDCNCPEGNKHGQHVJGNQPIVGTOOQPGVCT[KVGO

E

#NNQVJGTGZEJCPIGFKHHGTGPEGUCTGTGEQIPK\GFCUKPEQOGQTGZRGPUGUKPVJG5VCVGOGPVQH2TQVCPF.QUUKPVJGRGTKQF
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
KVGOUCTGTGEQIPK\GFKPVJG5VCVGOGPVQH2TQVCPF.QUUKPVJGRGTKQFKPYJKEJVJGGZEJCPIGTCVGEJCPIG#P[RTQVQTNQUU
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

+PXGUVOGPVUCTGENCUUKGFKPVQEWTTGPVCPFNQPIVGTOKPXGUVOGPVU%WTTGPVKPXGUVOGPVUGZEGRVHQTEWTTGPVOCVWTKVKGUQHNQPIVGTO
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
KUFGVGTOKPGFD[WUKPITUVKPTUVQWV
(+(1OGVJQF(KPKUJGFIQQFUCPFYQTMKPRTQITGUUKPENWFGEQUVUQHEQPXGTUKQPCPF
other costs incurred in bringing the inventories to their present location and condition.

'ZEKUGFWV[QPENQUKPIUVQEMQHPKUJGFIQQFUCPFUETCRCTGCEEQWPVGFHQTQPVJGDCUKUQHRC[OGPVUOCFGKPTGURGEVQHIQQFU
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.

/KPKOWO#NVGTPCVG6CZ
/#6RCKFKPC[GCTKUEJCTIGFVQ5VCVGOGPVQH2TQVCPF.QUUCUEWTTGPVVCZ6JGEQORCP[TGEQIPK\GU
MAT credit available as an asset only to the extent that there is convincing evidence that the company will pay normal income
VCZFWTKPIVJGURGEKGFRGTKQFKGVJGRGTKQFHQTYJKEJ/#6ETGFKVKUCNNQYGFVQDGECTTKGFHQTYCTF

40

In accordance with the Accounting Standard 22-AcEQWPVKPIHQT6CZGUQPKPEQOGCUPQVKGFWPFGT%QORCPKGU

#EEQWPVKPI
5VCPFCTF4WNGUVJGFGHGTTGFVCZHQTVKOKPIFKHHGTGPEGUDGVYGGPVJGDQQMVCZRTQVHQTVJGRGTKQFKUCEEQWPVGFHQT
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
QVJGTDQTTQYKPIEQUVUCTGGZRGPUGFKPVJG5VCVGOGPVQH2TQVCPF.QUUKPVJGRGTKQFVJG[QEEWT

xi)

MODVAT / CENVAT / VAT

/QFXCV%GPXCV8#6ENCKOGFQPECRKVCNCUUGVUKUETGFKVGFVQCUUGVUECRKVCNYQTMKPRTQITGUUCEEQWPV/QFXCV%GPXCV8#6
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

C

5JQTVVGTOGORNQ[GGDGPGVUCTGTGEQIPK\GFCUCPGZRGPUGCVVJGWPFKUEQWPVGFCOQWPVKPVJG[GCTKPYJKEJTGNCVGF
service is rendered.

D

6JG%QORCP[JCUFGPGFEQPVTKDWVKQPRNCPHQTRQUVTGVKTGOGPVDGPGVUPCOGN['ORNQ[GGU2TQXKFGPV(WPFUEJGOG
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.

F

6JG%QORCP[JCUFGPGFDGPGVURNCPUPCOGN[.GCXGGPECUJOGPV%QORGPUCVGFCDUGPEGCPF)TCVWKV[VJGNKCDKNKV[
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.

G

6GTOKPCVKQPDGPGVUCTGTGEQIPK\GFCUCPGZRGPUGKOOGFKCVGN[

H

)CKPQT.QUUCTKUKPIQWVQHCEVWCTKCNXCNWCVKQPCTGTGEQIPK\GFKPVJG5VCVGOGPVQH2TQVCPF.QUUCUKPEQOGQTGZRGPUG

xv)

PROVISIONS
Show cause notices issued by various government authorities are not considered as obligation. When the demand notice are
TCKUGFCICKPUVUWEJUJQYECWUGPQVKEGCPFCTGFKURWVGFD[VJG%QORCP[VJGPVJGUGCTGENCUUKGFCURQUUKDNGQDNKICVKQPU
Provisions involving substantial degree of estimation in measurement are recognised when there is a present obligation as a
TGUWNVQHRCUVGXGPVUCPFKVKURTQDCDNGVJCVVJGTGYKNNDGCPQWVQYQHTGUQWTEGU

xvi)

FINANCIAL DERIVATIVE TRANSACTION

&GTKXCVKXGEQPVTCEVUQVJGTVJCPHQTYCTFEQPVTCEVUCTGOCTMGFVQOCTMGVCV[GCTGPFCPFVJGTGUWNVCPVRTQVNQUUKUEJCTIGFVQ
5VCVGOGPVQH2TQVCPF.QUUGZEGRVKPECUGUYJGTGKVTGNCVGUVQVJGFGRTGEKCDNGZGFCUUGVUKPYJKEJECUGVJGUGCTGCFLWUVGF
to the carrying cost of such assets.

xvii) CONTINGENT LAIBILITY & COMMITMENTS



#EQPVKPIGPVNKCDKNKV[KUCRQUUKDNGQDNKICVKQPVJCVCTKUGUHTQORCUVGXGPVUYJQUGGZKUVGPEGYKNNDGEQPTOGFD[VJGQEEWTTGPEG
or non occurrence of one or more uncertain future events beyond the control of the company. Where the potential liabilities
JCXGCNQYRTQDCDKNKV[QHET[UVCNNK\KPIQTCTGXGT[FKHEWNVVQSWCPVKH[TGNKCDN[VJGUGCTGVTGCVGFCUEQPVKPIGPVNKCDKNKVKGU5WEJ
NKCDKNKVKGUCTGFKUENQUGFKPVJGPQVGUDWVCTGPQVRTQXKFGFHQTKPVJGPCPEKCNUVCVGOGPVUCNVJQWIJVJGTGECPDGPQCUUWTCPEG
TGICTFKPIVJGPCNQWVEQOGQHVJGNGICNRTQEGedings, the company does not expect them to have a materially adverse impact
QPVJGPCPEKCNRQUKVKQPQTRTQVCDKNKV[

41

NOTES TO ACCOUNT
(` in Lacs)
31.03.2014

31.03.2013

37,500.00

30,000.00

7,500.00

5,000.00

45,000.00

35,000.00

19,371.50

19,371.50

4,293.16

761.87

23,664.66

20,133.37

NOTE - 2 SHARE CAPITAL

Authorised
37,50,00,000 (Previous Year 30,00,00,000) Equity Shares of `10/- each
75,00,000 (Previous Year 50,00,000) Preference Shares of `100/- each
Issued, Subscribed & Paid Up
19,37,15,000 (Previous Year 19,37,15,000) Equity Shares of `10/- each
42,93,155 (Previous year 7,61,867) 2% Cumulative Compulsorily Convertible
Preference Shares of `100/- each

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

Company
Equity Shares of ` 10 each fully paid
8KUKQP5VGGN.VF

No. of shares

% Holding
in the class

No. of shares

% Holding in
the class

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
8KUKQP5VGGN.VF

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%

No. of shares

Amount

No. of shares

Amount

19,37,15,000

19,371.50

19,37,15,000

19,371.50

Note 2.2 - Reconciliation of share outstanding at the beginning and at

the end of the reporting period
(a) Equity Shares
Equity shares at the beginning of the year
Add: Equity share issued/cancelled during the year
Equity shares outstanding at the end of the year
(b) 2% Cumulative Compulsory Convertible Preference Shares of ` 100
each fully paid
Preference shares at the beginning of the year
Add: Fresh issue of Preference shares during the year
Less: Redeemed /Cancelled during the year
Preference shares outstanding at the end of the year

42

19,37,15,000

19,371.50

19,37,15,000

19,371.50

No. of shares

Amount

No. of shares

Amount

7,61,867

761.87

35,31,288

3531.29

7,61,867

761.87

42,93,155

4,293.16

7,61,867

761.87

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 `RGTUJCTGFWTKPIVJGPCPEKCN[GCT
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
RGTUJCTGFWTKPIVJGPCPEKCN[GCTQPRTKXCVGRTGHGTGPEKCNRNCEGOGPVDCUKU
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)

NOTE - 3 RESERVES AND SURPLUS

Capital Reserve
Capital Redemption Reserve
Securities Premium Account
As Per Last Balance Sheet
Add:-Received during the year
General Reserve
As Per Last Balance Sheet
#FF6TCPUHGTTGFHTQO5WTRNWUDCNCPEGKPVJG5VCVGOGPVQH2TQVCPF.QUU
Surplus
As Per Last Balance Sheet
#FF2TQVHQTVJGEWTTGPV[GCT
Less:- Transferred to General Reserve
Less:- Proposed Equity Final Dividend
Less:- Proposed Preference Dividend
Less:- Tax on Proposed Equity Dividend
Less:- Tax on Proposed Preference Dividend

Deferred Credits from Banks

UNSECURED LOANS
From Banks

43

31.03.2013

1.00
13.50

1.00
13.50

2,91,790.85
1,17,256.09

4,09,046.94

2,68,172.97
23,617.88

2,91,790.85

1,67,000.00
33,000.00

2,00,000.00

1,46,236.19
20,763.81

1,67,000.00

1,48,419.14
63,548.88
33,000.00
96.86
45.81
16.46
7.79

NOTE - 4 LONG TERM BORROWINGS

SECURED LOANS
Term Loans From Banks
- Rupee Loans
- Foreign Currency Loans

31.03.2014

1,78,801.10
7,87,862.54

1,12,103.92
57,192.48
20,763.81
96.86
0.11
16.46
0.02

1,48,419.14
6,07,224.50

15,88,317.60
6,20,829.47

12,56,839.37
5,41,820.96

1,736.85

1,049.80

30,000.00
22,40,883.92

17,99,710.13

NOTE 4.1 Security Detail of Long Term Borrowings (Including Current Maturities)
(i) Secured
(a) ` 21,98,661.08 Lacs (Previous year `.CEUUGEWTGFD[TUVEJCTIGQPCNNOQXGCDNGRTQRGTV[QHVJG%QORCP[KPENWFKPIRNCPVOCEJKPGT[
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.
6JGUG CTG HWTVJGT UGEWTGF D[ TUV EJCTIG QP +OOQXCDNG RTQRGTVKGU UKVWCVGF CV 2NQV 0Q   +PFWUVTKCN #TGC %JCPFKICTJ &GTCDCUUK QP #ODCNC
Chandigarh Road, 186, G.T. Road, Ludhiana, Bangihatti Serampore (Near Kolkata), village Dhubenchhapar, Khadiapali, Thelkoloi, Jangla, Brahmmipali,
&GTDC-CVCTDCIC6WODGMGNCCPF&JCTTQRCPK&KUVV5CODCNRWT1FKUJCVYQEKV[QHEGUCV%JQYTKPIJGG4QCF-QNMCVCCPFTGUKFGPVKCNRTGOKUGUUKVWCVGF
at Alipore, Kolkata (both present & future), ranking pari-passu interse between term lenders and further secured by personal guarantee of Chairman cum
/CPCIKPI&KTGEVQTCPF8KEG%JCKTRGTUQPEWO9JQNG6KOG&KTGEVQT
` 2,09,662.23 Lacs (Previous year `.CEUKUHWTVJGTUGEWTGFD[TUVEJCTIGKPHCXQWTQHUGEWTKV[CIGPVCEVKPIHQTKVUGNHCPFQVJGTNGPFGTUKP
respect of Companys immovable property situated at D-818, New Friends Colony New Delhi.
(b) ` 1,52,964.45 Lacs (Previous year `.CEUKUUGEWTGFD[UWDUGTXKGPVEJCTIGQPGPVKTGEWTTGPVCPFZGFCUUGVUQHVJG%QORCP[CPFHWTVJGT
UGEWTGFD[RGTUQPCNIWCTCPVGGQH%JCKTOCPEWO/CPCIKPI&KTGEVQTCPF8KEG%JCKTRGTUQPEWO9JQNG6KOG&KTGEVQT
(c) ` 8,634.91 Lacs (Previous year `.CEUKUUGEWTGFD[GZENWUKXGTUVEJCTIGKPHCXQWTQHUGEWTKV[CIGPVUCEVKPICUCIGPVHQTGSWKROGPVUWRRNKGTU
QPVJGURGEKEGSWKROGPVUWRRNKGFD[URGEKEUWRRNKGTURGEKEGSWKROGPVUOQXCDNGCUUGVU
QHXCNWGCRRTQZKOCVGN[` 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 `.CEUKUUGEWTGFD[GZENWUKXGTUVEJCTIGKPHCXQWTQHUGEWTKV[CIGPVUCEVKPICUCIGPVHQTGSWKROGPVUWRRNKGTU
QP VJG URGEKE GSWKROGPV UWRRNKGF D[ URGEKE UWRRNKGT URGEKE GSWKROGPVU OQXCDNG CUUGVU GTGEVGFVQ DG GTGEVGF EQPUVTWEVGF KPUVCNNGF CV 4GPICNK
Sambalpur, Odisha, wherein the equipments are located/ shall be located includes Hicon/H2 Bell Annealer.
(e) ` 25,105.08 Lacs (Previous year `  .CEU KU UGEWTGF D[ GZENWUKXG TUV EJCTIG KP HCXQWT QH UGEWTKV[ CIGPVU CEVKPI CU CIGPV HQT GSWKROGPV
UWRRNKGTUQPVJGURGEKEGSWKROGPVUWRRNKGFD[URGEKEUWRRNKGTURGEKEGSWKROGPVUOQXCDNGCUUGVU
QHXCNWGCRRTQZKOCVGN[` 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 `0+.KUUGEWTGFD[GZENWUKXGTUVEJCTIGKPHCXQWTQHUGEWTKV[CIGPVUCEVKPICUCIGPVHQTGSWKROGPVUWRRNKGTUQPVJG
URGEKEGSWKROGPVUWRRNKGFD[URGEKEUWRRNKGTURGEKEGSWKROGPVUOQXCDNGCUUGVUGTGEVGFVQDGGTGEVGFEQPUVTWEVGFKPUVCNNGFCV4GPICNK5CODCNRWT
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
URGEKECUUGVUWPFGTFGHGTTGFETGFKVRC[OGPVVGTOUCPFRGTUQPCNIWCTCPVGGQH%JCKTOCPEWO/CPCIKPI&KTGEVQT

(ii) Unsecured
` 30,000.00 Lacs (Previous year `0+.KUUGEWTGFD[RGTUQPCNIWCTCPVGGQH%JCKTOCPEWO/CPCIKPI&KTGEVQTCPF8KEG%JCKTRGTUQPEWO9JQNGVKOG
Director.

NOTE 4.2

Terms of repayment and conversion of Term Loans

(` in Lacs)

1. Terms of repayment

(i)
(a)
(b)

(c)

(d)

(e)

2014-15

2015-16

1,95,614.46

3,60,973.00

2016-17 &
beyond
18,80,912.40

LOAN SANCTION UNDER SYNDICATION

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).
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.
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.
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.
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)
(a)

LOAN OTHER THEN SYNDICATION

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 `  .CEU UCPEVKQPGF D[ #NNCJCDCF DCPM CU C UWD NKOKV QH VGTO NQCP VQ DG UCPEVKQPGF HQT 2JCUG8+ 4GRC[CDNG KP
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 `.CEU"RC8KLC[C$CPMQH` 8,038.00 Lacs (Previous year ` 10,000.00 Lacs) @ 13.25%, and Andhra Bank of
` 15,170.15 (Previous year `.CEU"RCYKVJOQPVJN[TGUVKUWVKNKUGFHQT2JCUG+8QHVJG1FKUJCRTQLGEV#OQWPVFWGKUTGRC[CDNGKPJCNH
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
[GCTUHTQOVJGFCVGQHTUVFKUDWTUGOGPVCVNQYGTRTKEGQHDCPFKPECUGQHDQQMDWKNFKPIQTCVVJGKUUWGRTKEGKPECUGQHZGFRTKEGKUUWGJQYGXGTVJGQRVKQP
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.
6JGUCKFNQCPKUWVKNKUGFHQT2JCUG8QHVJG1FKUJCRTQLGEVYKVJQRVKQPVQEQPXGTVKPVQGSWKV[UJCTGUKPECUGVJGEQORCP[EQOGUQWVYKVJ+21YKVJKP[GCTU
HTQOVJGFCVGQHTUVFKUDWTUGOGPVCVCOWVWCNN[RTGCITGGFFKUEQWPVVQ+21RTKEG

NOTE - 5 DEFERRED TAX LIABILITIES

Deferred Tax Liability On Account Of :
Related To Fixed Assets
Deferred Tax Assets On Account Of :
Provision For Doubtful Debts
Disallowances Under The Income Tax Act,1961
Net Deferred Tax Liability

679.84
943.88

NOTE - 6 OTHER LONG TERM LIABILITIES

Security Deposits
Liability For Capital Goods/Expenditures
Other (Forward Premium)

NOTE - 7 LONG TERM PROVISIONS

2TQXKUKQPUHQT'ORNQ[GG$GPGVU
Provision for Gratuity
Leave Encashment

NOTE - 8 SHORT TERM BORROWINGS

SECURED LOANS FROM BANKS
Working Capital Loans
- Rupee Loans
- Foreign Currency Loans
Term Loans
-Rupee Loans
-Foreign Currency Loans
UNSECURED LOANS
From Banks
-Commercial Paper
-Rupee Loans
From Others
-Loan From Related Party

45

31.03.2014

(` in Lacs)
31.03.2013

1,41,706.81

1,11,665.64

1,623.72
1,40,083.09

636.21
946.34

1,582.55
1,10,083.09

14,618.50
93,555.04
10,653.50
1,18,827.04

16,316.69
1,90,299.75
2,06,616.44

1,547.14
1,324.47
2,871.61

1,519.08
1,315.70
2,834.78

3,40,521.06
57,973.91

2,04,956.55
48,262.45

91,045.95
-

1,97,641.10
5,173.04

8,000.00
-

25,000.00
5,000.00

1,001.48
4,98,542.40

4,86,033.14

NOTE 8.1
Security Detail of Short Term Borrowings
(i)

Secured

(a)

(b)
(c)

` 3,98,494.97 Lacs (Previous year `.CEUUGEWTGFD[TUVEJCTIGQPEWTTGPVCUUGVU

DQVJRTGUGPVCPFHWVWTGD[YC[QHJ[RQVJGECVKQPQHUVQEMU
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)}
CPFHWTVJGTUGEWTGFD[UGEQPFEJCTIGETGCVGFCPFQTVQDGETGCVGFQPCNNOQXCDNGCUUGVUHQTOKPIRCTVQHZGFDNQEMQHCUUGVU
DQVJRTGUGPVHWVWTGCPFQP
immovable properties, building, structure and all plant & machinery fastened to earth at Plot No. 22, 71, Industrial Area, Chandigarh,Derabassi on AmbalaChandigarh Road,186, G.T. Road, Ludhiana, Bangihatti Serampore (Near Kolkata),village Dhubenchhapar, Khadiapali,Thelkoloi,Jangla, Brahmmipali,
&GTDC-CVCTDCIC6WODGMGNCCPF&JCTTQRCPK&KUVV5CODCNRWT1FKUJCCPFVYQEKV[QHEGUUKVWCVGFCV%JQYTKPIJGG4QCF-QNMCVCCPFTGUKFGPVKCNRTGOKUGU
situated at Alipore, Kolkata. The security ranks pari-passu inter-se between consortium member banks.Loans are further secured by personal guarantee of
%JCKTOCPEWO/CPCIKPI&KTGEVQTCPF8KEG%JCKTRGTUQPEWO9JQNGVKOG&KTGEVQT
` 76,955.19 Lacs (Previous year `.CEUKUUGEWTGFD[UWDUGTXKGPVEJCTIGQHZGFCUUGVUEWTTGPVCUUGVUQHVJGEQORCP[
` 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 `.CEUKUUGEWTGFD[RGTUQPCNIWCTCPVGGQH%JCKTOCPEWO/CPCIKPI&KTGEVQTCPF8KEG%JCKTRGTUQPEWO9JQNGVKOG&KTGEVQT

(` in Lacs)

NOTE - 9 TRADE PAYABLE

Outstanding dues to Micro & Small Enterprises (Refer Note 34)
Outstanding dues to other than Micro & Small Enterprises
NOTE - 10 OTHER CURRENT LIABILITIES
Current Maturities of Long Term Debts
Interest Accrued but not due on borrowings
Advances from Customers
Accrued Expenses
Security Deposits
Due to Directors
Statutory Dues
Other Payables*

31.03.2014

31.03.2013

189.81
1,34,503.54
1,34,693.35

123.74
91,067.36
91,191.09

1,95,614.46
14,732.38
4,385.43
4,486.01
118.40
11.81
18,830.46
7,173.23
2,45,352.18

1,95,305.91
11,681.41
4,649.28
2,894.96
338.86
13.12
9,157.76
5,076.69
2,29,117.99

*(Includes amount payable to employees)

NOTE -11 SHORT TERM PROVISIONS
2TQXKUKQPHQT'ORNQ[GG$GPGVU
Provision for Gratuity

363.05

125.00

Provision for Leave Encashment

180.88

143.72

Other Provisions
Provision 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

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

Provision for Tax on Proposed Preference Dividend

46

NOTE - 12 FIXED ASSETS

(` in Lacs)
GROSS BLOCK

DESCRIPTION
OF
FIXED ASSETS

As At
01.04.2013

Additions
During the
Year

Adjustment
during the
year

DEPRECIATION
Sale/
Discarded
During the
Year

As At
31.03.2014

As At
01.04.2013

For the
Year

NET BLOCK

Adjustment
during the
Year

Written back
during the
Year

As at
31.03.2014

As At
31.03.2013

As At
31.03.2014

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

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

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

8GJKENGU

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

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

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
10,57,831.41

14,19,398.16

1,493.44

33,57,802.28

27,95,233.25

Building
Railway Siding

1HEG'SWKROGPV

Sub-total (A)
Intangible Assets

Capital Work-in-Progress
Intangible Assets Under Development
Total
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 `NCEUQPCEEQWPVQHDQTTQYKPIEQUVGZEJCPIGWEVWCVKQP
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.

47

(` in Lacs)
31.03.2014
NOTE -13 NON-CURRENT INVESTMENT
QUOTED
Long Term, Trade (Valued At Cost)
Investment in Equity Shares (Fully paid up)
- ASSOCIATES
Nova Iron & Steel Ltd ( Refer note 32 )
1,42,69,146 (Previous Year 1,42,69,146 ) Equity Shares of ` 10/-each
- OTHERS
Orissa Sponge Iron & Steel Ltd
840 (Previous Year 840 ) Equity Shares of ` 10/-each
Aggregate Value of Quoted Investment
UNQUOTED
Long Term, Trade (Valued At Cost)
Investment in Equity Shares (Fully paid up)
- ASSOCIATES
Ambey Steel & Power Pvt Ltd
28,14,215 (Previous Year 28,14,215 ) Equity Shares of ` 100/-each
Aarti Minerals (Australia) PTY. Ltd.
5,66,000 ( Previous Year 5,66,000 ) Ordinary Shares of AUD 1 each
Less :- Provision for diminution
- JOINT VENTURE
Rohne Coal Company Pvt. Limited
2,40,900 (Previous Year 2,40,900 ) Equity Shares of `10/-each fully paid up
- OTHERS
Skap Electronics Pvt. Ltd.
980 ( Previous Year 980 ) Equity Shares of `100/-each
Investment in Preference Shares (Fully paid up)
- JOINT VENTURE
Rohne Coal Company Pvt. Limited
69,19,778 (Previous Year 69,19,778 ) 1 % Non Cumulative Redeemable
Preference Shares of `10/-each
Aggregate Value of Unquoted Investment
Aggregate Value of Quoted Investment
Aggregate Value of Unquoted Investment
Market Value of Quoted Investment
NOTE - 14 LONG TERM LOANS AND ADVANCES
(Unsecured, Considered good)
Capital Advances
Security Deposits
Loans and Advances to Employees*
#FXCPEG(QT.QPI6GTO+PXGUVOGPV
6QC,QKPV8GPVWTG
MAT Recoverable

(A)

(B)
(A+B)

31.03.2013

7,672.35

7,672.35

7.80
7,680.15

7.80
7,680.15

2,828.29

2,828.29

295.04
(295.04)

295.04
(295.04)

24.09

24.09

982.45

982.45

691.98
4,526.81
12,206.96
7,680.15
4,526.81
2,725.95

691.98
4,526.81
12,206.96
7,680.15
4,526.81
1,448.91

67,857.62
8,956.61
613.38
359.93
82,940.00
1,60,727.54

40,772.91
7,680.60
1,237.57
232.55
63,240.00
1,13,163.63

1,742.06
2,000.12
3,742.18
2,000.12
1,742.06

3,379.30
1,960.88
5,340.18
1,960.88
3,379.30

234.49
1,976.55

3,379.30

*Loans and Advances include ` Nil (Previous year `.CEUFWGHTQOQHEGTQHVJG%QORCP[

NOTE - 15 OTHER NON CURRENT ASSETS
(Unsecured,Considered Good Unless Stated Otherwise)
(A) Long Term Trade Receivables
Considered Good
Doubtful
Less:- Provision For Doubtful Debts
(B) Cash & Bank Balance
Non Current Fixed Deposit (Refer Note-19)

48

(` in Lacs)
NOTE - 16 CURRENT INVESTMENT
UNQUOTED
Non- Trade (Valued at Lower of Cost and Fair Value)
Investment in Bonds
Indusind Bank
NIL ( Previous Year 10 ) Unsecured, Non Convertible Bond of
` 10 Lacs each, fully paid up
Cholamandlam Investment & Finance Co.Ltd (Bonds)
NIL (Previous Year 100 ) Bonds of ` 5 lacs each
Investment in Mutual fund - Liquid Fund
Canara Robeco Indigo Growth Fund-IG-GP
NIL ( Previous Year 8,20,761.9950 ) Units of ` 10/- each
Canara Robeco Gold Saving Fund-dividend
12,32,869.1413 (Previous Year 13,69,762.5301 )Units of ` 10/- each
Less :- Provision for diminution
CP1G Union KBC Capital Protection Oriented Fund
19,99,990(Previous Year 19,99,990 )Units of ` 10/- each
CP2G Union KBC Capital Protection Oriented Fund
20,00,000(Previous Year 20,00,000 )Units of ` 10/- each
CP5G Union KBC Capital Protection Oriented Fund
10,00,000(Previous Year Nil )Units of ` 10/- each
EFGR Union KBC Equity Fund Growth
NIL ( Previous Year 10,00,000 ) Units of ` 10/- each
SBI - Magnum Income - Fund Growth
NIL (Previous Year 17,35,285.6450 )Units of ` 10/- each
Canara Robeco Capital Protection Oriented Fund
5,50,000 (Previous Year NIL) Units of ` 10/- each
Canara Robeco Tresure Advantage Fund-Dividend
289.6491 (Previous Year 1907.2072 )Units of ` 1000/- each
Canara Robeco Monthly Income Plan
38535.8780(Previous Year NIL )Units of ` 10/- each
Canara Robeco Short Term Fund Growth
26120.2727 (Previous Year NIL )Units of ` 10/- each
Canara Robeco Income Regular Growth
39728.1930 (Previous Year NIL )Units of ` 10/- each
PNB- Principal Income Fund Long Term Plan
4,93,710.0710 (Previous Year NIL )Units of ` 10/- each
DSP Blackrock MIP Fund Growth
2,36,603.5090(Previous Year 2,36,603.5090 )Units of ` 10/- each
UTI Floating Rate Growth Fund
5036.1868 (Previous Year Nil) )Units of ` 100/- each
UTI Nifty Index Fund-Growth
9778.7089 (Previous Year Nil) )Units of ` 100/- each
UTI short Term Income Fund
Nil (Previous Year 15,05,325.1140 )Units of ` 10/- each
Aggregate Value of Unquoted Investment
NOTE - 17 INVENTORIES
Raw Material
Raw Material-in-Transit
Work-in-Progress
Finished Goods
Finished Goods in Transit
Stock-in-Trade
Stores & Spares
Others

49

31.03.2014

31.03.2013

100.00

510.63

100.00

120.13
(5.53)

138.00
-

199.77

199.77

200.00

200.00

100.00

100.00

500.00

55.00

3.59

23.66

5.18

3.75

10.00

100.00

50.00

50.00

103.20

4.00

949.09

200.00
2,122.06

1,87,755.09
6,017.91
4,256.19
78,469.98
5,832.93
1,269.86
33,802.94
806.39
3,18,211.29

94,362.02
4,270.35
5,747.89
72,111.17
5,833.86
5,819.71
10,356.95
769.50
1,99,271.45

(` in Lacs)
NOTE - 18 TRADE RECEIVABLE
(Unsecured, Considered Good)
Outstanding for a period exceeding six months from due date
Others
NOTE -19 CASH & BANK BALANCE
(A) Cash and Cash Equivalents
Cash on Hand
Balances with Scheduled Banks
- In Current Account
- Deposits with original maturity of less than three months
(B) Other Bank Balances
Fixed Deposits Having Maturity Period:- For More Than 12 Months*
- 3 to 12 Months*
Less Non Current Fixed Deposit

31.03.2014

31.03.2013

2,922.21
1,59,514.48
1,62,436.69

3,904.12
1,67,936.49
1,71,840.61

59.63

93.65

12,425.57
1,359.04

63,806.67
2,102.13

245.22
3,749.29
17,838.75
234.49
17,604.26

6.49
7,356.38
73,365.32
73,365.32

1,14,547.09

1,34,257.88

7,802.25
397.58
17,080.71
0.57
28,277.10
1,68,105.30

7,739.38
353.76
13,536.40
1,500.00
5.76
27,688.60
1,85,081.78

96.76
96.76

8,73,328.30
2,35,571.33
11,08,899.63

7,78,405.37
1,55,895.28
9,34,300.65

12,625.63
449.00
6,895.49
19,970.12
11,28,869.75

10,246.81
1,738.69
5,461.04
17,446.54
9,51,747.19

*(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*
Loans and Advances
-To related parties
-To Employees**
-To Corporate Bodies & Others
Advance for Investment
Balance with Excise Authorities
$CNCPEGQH/QFXCV%GPXCV5GTXKEG6CZ8CV
* "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 `.CEUFWGHTQOQHEGTQHVJG
Company. Maximum amount outstanding at any time during the year ` 3.35 Lacs (Previous
year ` 9.03 Lacs).
NOTE -21 OTHER CURRENT ASSETS
Fixed Assets held for Disposal
NOTE -22 REVENUE FROM OPERATIONS
Sales
Export Sales
Sales including Excise Duty
Other Operating Revenue
Scrap Sales
Export Sales (Scrap)
Export Incentives
Gross Revenue from Operations

50

(` in Lacs)
NOTE -23 OTHER INCOME
Misc. Income
2TQVQP5CNGQH5JQTV6GTO+PXGUVOGPV
2TQVQP5CNG&KUECTFGFQH(KZGF#UUGVU
0GV
Diminution Write Back
Dividend Received on Current Investment
NOTE -24 COST OF RAW MATERIAL CONSUMED
Raw Material Consumed
Less :
Cost of Material Transferred to Projects Commissioned /Under Commissioning /Trial Run
NOTE -25 CHANGE IN INVENTORIES OF FINISHED GOODS, WORK-IN-PROGRESS &
STOCK-IN-TRADE
Opening Stock
Finished Goods
Stock-in-Trade
Work-In-Progress
Others
Closing Stock
Finished Goods
Stock-in-Trade
Work-In-Progress
Others
Net
NOTE -26 EMPLOYEES BENEFITS EXPENSES
Salary, Wages & Bonus
Contribution to PF & Other Funds
5VCHH$GPGVU
Less :
-Transferred to Projects Commissioned /Under Commissioning /Trial Run

NOTE -27 FINANCE COSTS

Interest Expenses*
Other Borrowing Costs
Less :
Interest Earned**
Less :
-Transferred to Projects Commissioned /Under Commissioning /Trial Run

*Includes ` Nil (Previous Year `400.83) on short payment of advance tax

** Tax Deducted at Source `392.20 Lacs (Previous year ` 327.10 Lacs)

51

31.03.2014

31.03.2013

159.18
141.40
15.16
2.77
318.51

204.62
19.46
274.87
3.77
24.26
526.98

4,65,912.19

4,30,771.02

842.59
4,65,069.60

919.24
4,29,851.78

77,945.02
5,819.71
5,747.89
769.50
90,282.12

59,924.03
342.82
2,222.43
913.62
63,402.90

84,302.91
1,269.86
4,256.19
806.39
90,635.35
(353.23)

77,945.02
5,819.71
5,747.89
769.50
90,282.12
(26,879.22)

40,038.34
545.52
667.88
41,251.74

31,097.40
530.18
683.85
32,311.43

13,729.86
27,521.88

9,957.26
22,354.17

2,95,490.64
31,610.51
3,27,101.15

2,24,943.98
7,019.90
2,31,963.88

4,313.42
3,22,787.73

3,536.71
2,28,427.17

1,78,984.84
1,43,802.89

1,20,261.80
1,08,165.37

(` in Lacs)
NOTE - 28 OTHER EXPENSES
Stores Consumed
Power & Fuel
Excise Duty Provided on Stock (Net)
Rates and Taxes
Legal & Professional Charges
Insurance
Auditors' Remuneration
Travelling & Conveyance
Advertisement & Sales Promotion
Postage, Telegrams & Telephone
Utility & Facility
Rebate and Discount
Selling and Distribution Expenses
Selling Commission
Repair and Maintenance:
- Building
- Machinery
8GJKENG
Rent
Other Administrative Expenses
Exchange Fluctuation (Net)
Investment Written Off
Provision for Doubtful Debts
Diminution in Investment
Less :
-Transferred to Projects Commissioned /Under Commissioning /Trial Run

31.03.2014

31.03.2013

29,179.12
94,124.28
3,161.73
815.10
2,013.65
554.55
124.52
2,894.00
168.06
531.03
587.10
3,266.85
48,127.30
492.25

28,865.78
78,336.82
107.23
793.27
802.33
384.71
104.83
2,428.24
61.41
439.54
1,225.22
3,096.31
27,907.76
74.80

342.83
4,882.93
1,125.58
24.01
427.13
2,819.75
39.36
5.53
1,95,706.66

126.59
5,973.63
1,134.21
201.12
507.41
557.36
1.43
184.80
295.04
1,53,609.84

8,218.39
1,87,488.27

11,112.07
1,42,497.77

31.03.2014
NOTE - 29 CONTINGENT LIABILITY
A Contingent Liability
Bills discounted with banks
Claims against the Company not acknowledged as debt
Central / State Sales Tax Act
Odisha Entry Tax Act
Central Excise Act,1944
Income Tax Act,1961
Service Tax
B Commitments
a) Capital Commitments
Estimated amount of contracts remaining to be executed on capital account and not
provided for (Net of Advances)
b) Other Commitments
Outstanding guarantees furnished to Banks & Financial Institutions including in
respect of letters of credit (availed by the company)

(` in Lacs)
31.03.2013

43,239.49
12,601.42
8,145.87
516.98
13,791.26
3,847.37
10.93

17,468.69
13,008.70
6,802.45
516.98
5,010.03
5,373.05
14.56

2,63,064.13

1,88,702.20

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)
31.03.2013

31.03.2014
EXPENDITURE DURING CONSTRUCTION / INSTALLATION
Opening Balance
Pre-Operative/Trial Run Expenses transfer from Statement of
2TQVCPF.QUU
4GHGTPQVG
Finance Costs (Refer note-27)
Depreciation
Total
Less : Capitalised during the year
Transferred to Capital Work in Progress
NOTE-32

1,92,837.00

2,88,742.31
21,988.57

22,790.84
1,78,984.84
761.64

2,02,537.32
4,91,279.63
2,50,719.79
2,40,559.84

1,20,261.80
1,248.85

1,43,499.22
3,36,336.22
47,593.91
2,88,742.31

6JGEQORCP[JCUOCFGNQPIVGTOUVTCVGIKEKPXGUVOGPVKP0QXC+TQP5VGGN.VFJCXKPICEEWOWNCVGFNQUUGU6JGUCKFEQORCP[NGF
a 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.

31.03.2014

(` in Lacs)
31.03.2013

80.00

70.00

20.00
10.00
5.00
9.52
124.52

15.00
10.00
9.83
104.83

NOTE-33 Auditors Remuneration includes:

- Audit Fee
- Tax Audit Fee
%GTVKECVKQP(GG
- Corporate Governance
- Expenses Reimbursed
Total
NOTE-34

In respect of amounts due to Micro, Small and Medium Enterprises under The Micro, Small and Medium Enterprises Development
#EVVJG%QORCP[JCUEGTVKGFVJCVCUCRQNKE[VJGRC[OGPVVQUWRRNKGTUKUOCFGYKVJKPFC[UGZEGRVKPFKURWVGFECUGU6JG
amount remaining unpaid as at 31st March, 2014 was ` 189.81 Lacs (Previous year `.CEU+PKFGPVKGFECUGUPQKPVGTGUV
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)

NOTE-35

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

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 `.CEUCURGTGUVKOCVGFRCVVGTPQHFKURCVEJGU#EVWCNQWVQY
is expected in next year.
There is no other present obligation requiring provision in accordance with the guiding principles as enunciated in Accounting Standard
CUPQVKGFWPFGT%QORCPKGU
#EEQWPVKPI5VCPFCTF4WNGUCUKVKUPQVRTQDCDNGVJCVCPQWVQYQHTGUQWTEGUGODQF[KPI
GEQPQOKEDGPGVYKNNDGTGSWKTGF

53

NOTE-36 #URGT#EEQWPVKPI5VCPFCTF
#5'ORNQ[GG$GPGVUVJGFKUENQUWTGQHGORNQ[GGDGPGVUCUFGPGFKPVJG#EEQWPVKPI5VCPFCTFU
are given below:(A) &GPGF%QPVTKDWVKQP2NCPU
%QPVTKDWVKQPVQFGPGFEQPVTKDWVKQPRNCPTGEQIPK\GFCUGZRGPUGURTGQRGTCVKXGGZRGPUGFKUCUWPFGT
(` in Lacs)
31.03.2013
31.03.2014
a) Employer contribution to Provident Fund / Other Funds
530.18
545.52
b) Employer contribution to State Plans
i) Employee State Insurance
110.39
101.24
ii) Labour Welfare Fund
0.53
0.82
(B) &GPGF$GPGV2NCP
a) Leave Encashment/ Compensated Absence.
b) Contribution to Gratuity Funds - Employees Gratuity Fund.
+PCEEQTFCPEGYKVJ#EEQWPVKPI5VCPFCTF
#5
TGXKUGFVJGCEVWCTKCNXCNWCVKQPECTTKGFQWVKPTGURGEVQHVJGCHQTGUCKFFGPGFDGPGV
plans is based on the following assumption.

i)

Actuarial Assumptions:-

Leave
Encashment/
Compensated
Absence 31.03.14

Leave
Encashment/
Compensated
Absence 31.03.13

Employee
Gratuity
Fund
31.03.14

(` in Lacs)
Employee
Gratuity
Fund
31.03.13

8.50%
7.50%
N.A.
24.12

8.00%
7.50%
N.A.
24.30

8.50%
7.50%
9.40%
24.09

8.00%
7.50%
9.40%
24.30

1,459.43
116.75
301.92
(207.12)
(165.64)
1,505.34

1,157.04
92.56
330.79
(140.56)
19.60
1,459.43

2,566.34
205.31
425.11
(142.30)
(100.47)
2,954.00

2,164.98
173.20
392.58
(104.43)
(59.98)
2,566.34

922.26
86.69
180.12
(142.30)
(2.97)
1,043.80

712.08
66.94
226.50
(104.43)
21.17
922.26

1,505.34
(1,505.34)
(1,505.34)

1,459.43
(1,459.43)
(1,459.43)

2,954.00
1043.80
(1,910.20)
(2.97)
(1,910.20)

2,566.34
922.26
(1,644.08)
21.17
(1,644.08)

Discount Rate (per annum)

Rate of increase in compensation levels
Rate of return on plan assets.
Expected Average remaining working lives of employees (years)
ii) Change in the obligation during the year ended
31st March,2014
Present value obligation as at beginning of the year
Interest cost
Past service cost
Current service cost
Curtailment cost
Settlement cost
$GPGVURCKF
Actuarial (gain)/ loss on obligations
Present value obligation as at end of the year
iii) Change in fair value Plan Assets
Fair value of plan assets as at beginning of the year
Expected return on plan assets
Contributions
$GPGVURCKF
Actuarial gain/ (loss) on plan assets
Fair value of plan assets as at end of the year
iv) 4GEQPEKNKCVKQPQH2TGUGPVXCNWGQH&GPGF$GPGV
Obligation and Fair value of Assets
Present value obligation as at end of the year
Fair value of Plan Assets as at end of the year
Funded status
Present value of unfunded obligation as at end of the year
Excess of actual overestimated
Unfunded net asset/ (liability) recognised in Balance Sheet.

54

v)

'ZRGPUGUTGEQIPKUGFKP5VCVGOGPVQH2TQVCPF.QUU

Leave
Encashment/
Compensated
Absence 31.03.14

Leave
Encashment/
Compensated
Absence 31.03.13

Employee
Gratuity
Fund
31.03.14

(` in Lacs)
Employee
Gratuity
Fund
31.03.13

Current service cost

330.79
392.58
301.92
425.11
Past service cost
Interest cost
92.56
173.20
116.75
205.31
Expected return on plan assets
(66.94)
(86.69)
Curtailment cost
Settlement cost
Net Actuarial (gain)/ loss recognised during the year
19.60
(81.15)
(165.64)
(97.50)
Paid to left employees
6QVCN'ZRGPUGTGEQIPKUGFKP5VCVGOGPVQH2TQVCPF.QUU
442.96
417.69
253.03
446.23
(Including transfered to capital work in progress)
0QVG6JGGUVKOCVGQHHWVWTGUCNCT[KPETGCUGEQPUKFGTGFKPCEVWCTKCNXCNWCVKQPVCMGUKPVQCEEQWPVKPCVKQPUGPKQTKV[RTQOQVKQPCPFQVJGTTGNGXCPV
factors.
NOTE-37

6JG %QORCP[ KU GPICIGF KP VJG +TQP  5VGGN DWUKPGUU YJKEJ KP EQPVGZV QH #EEQWPVKPI 5VCPFCTF CU PQVKGF WPFGT
Companies (Accounting Standard) Rules,2006 is considered the only business segment.
(` in Lacs)

a)

31.03.2013

8,85,953.93

7,88,652.18

Gross revenue of the Company as per geographical segment is as follows :Within India
Outside India (Including export incentives and high sea sales)
Total

b)

31.03.2014

2,42,915.82

1,63,095.01

11,28,869.75

9,51,747.19

1,57,029.43

1,56,068.66

Trade Receivable of the Company as per geographical segment is as follows :Within India
Outside India

7,149.32

Total

19,151.25
1,75,219.91

1,64,178.75
6JG%QORCP[JCUEQOOQPZGFCUUGVUQVJGTEWTTGPVCUUGVUCPFNKCDKNKVKGUHQTRTQFWEKPIIQQFUHQTFQOGUVKECUYGNNCUQXGTUGCUOCTMGV
NOTE-38 Disclosure in accordance with the Accounting Standard-18 Related Party Transaction.
(i)

Key Managerial Personnel:

Mr. Sanjay Singal

Mrs. Aarti Singal
Mr. Ashok Kumar Khushu
Mr. R.P. Goyal
/T*%8GTOC
Mr. R.N. Yadav
(ii)

(Chairman & Managing Director)

8KEG%JCKTRGTUQP9JQNG6KOG&KTGEVQT
(Dy. Managing Director) w.e.f 07.09.2013
(Whole Time Director)
(Whole Time Director)
(Whole Time Director)

Subsidiary Companies:
Aarti Minerals (Australia ) PTY Ltd. (upto 30.03.2013)
Skap Electronics (P) Ltd. (upto 23.11.2012)
Aarti Resources Mozambique Limitada (Liquidated on 30.03.2013)
M/s Global Steel & Minerals Pte. Ltd. (Incorporated on 25.04.2013)*

55

(iii) Associates:
Nova Iron & Steel Limited
Ambey Steel & Power Private Limited
Aarti Minerals (Australia ) PTY Ltd. (w.e.f 31.03.2013)
Jasmine Steel Trading Ltd.
Marsh Steel Trading Ltd.
8KUKQP5VGGN.VF
Diyajyoti Steel Ltd
(iv) Joint Venture:
Rohne Coal Company Pvt. Ltd.
(v)

'PVGTRTKUGQXGTYJKEJMG[OCPCIGTKCNRGTUQPPGNCPFVJGKTTGNCVKXGUJCXKPIUKIPKECPVKPWGPEG
Aarti International Ltd.
Atma Ram House Investment Pvt.Ltd.
Sanjay Singal (HUF)

(vi) Relative of key managerial personnel:

Mr. Aniket Singal
*Shares is yet to be allotted & operations not yet started.

Transactions with the above related parties are as follows :

Nature of
Transactions

Subsidiaries

Associates

31.03.2013

69.03
36.00
27.55

Mr. R.P.Goyal
/T*%8GTOC
Mr. A.K. Khushu
Total
Rent Paid
Skap Electronics
Atma Ram House
Invesment Pvt.Ltd.
Total
Rent Received
Ambey Steel & Power
Pvt. Ltd.
Investment Made:In Equity Shares :
Aarti Minerals (Austrila)
Pty.Ltd.
For Preference
Shares:
Rohne Coal Company
Pvt. Ltd.
Interest earned
Nova Iron & Steel Ltd.
Purchase
Nova Iron & Steel Ltd.
Sale
Nova Iron & Steel Ltd.
Advance Received
Aarti International Ltd.
Issue of Pref.Shares
of the Company
Jasmine Steel Trading
Ltd.
Marsh Steel Trading
Ltd.
8KUKQP5VGGN.VF
Diyajyoti Steel Ltd
Sanjay Singal
Aarti Singal
Sanjay Singal (HUF)
Aniket Singal
Total

31.03.2013

72.00
34.50
23.39

69.03
36.00
27.55

72.00
34.50
23.39

31.53
33.15
34.00

28.65
29.04
-

31.53
33.15
34.00

28.65
29.04
-

231.26

187.58

231.26

187.58

31.03.2014

31.03.2013

5.14

8.40

6.00

8.40

5.14
6.00

8.40

6.00

8.40

11.14

0.30

0.30

132.68

127.38

114.07

0.30

132.68

127.38

TOTAL

31.03.2014

31.03.2014

31.03.2013

Relative of key
managerial personnel

5.14

0.30

31.03.2014

31.03.2013

Enterprise over
which key managerial
personnel and their
relative having
UKIPKECPVKPWGPEG

31.03.2014

31.03.2014

31.03.2013

Key Managerial
Personnel

Salary and Perquisites

Mr. Sanjay Singal
Mrs.Aarti Singal
Mr.R.N.Yadav

31.03.2014

31.03.2013

(` in Lacs)

Joint Ventures

114.07

908.05

838.20

908.05

838.20

2,650.01

12,158.79

2,650.01

12,158.79

1,427.80

395.09

1,427.80

395.09

101.48

101.48

19,399.65

5,570.88

19,399.65

5,570.88

19,123.35

6,077.60

19,123.35

6,077.60

18,866.73
19,088.40

7,097.50
5,633.76

18,866.73
19,088.40
14,944.90
14,565.85
8,748.50
6,050.00
1,20,787.38

7,097.50
5,633.76
24,379.74

14,944.90
14,565.85

76,478.13

24,379.74

29,510.75

56

8,748.50

8,748.50

6,050.00
6,050.00

Balance as at 31st March,2014

Nature of
Transactions

Subsidiaries

Associates

Joint Ventures

31.03.2013

Mr. Sanjay Singal

3.57

Mrs.Aarti Singal

2.22

3.57

2.68

4.99

2.22

4.99

Mr.R.N.Yadav

0.98

0.96

0.98

0.96

Mr. R.P.Goyal

1.61

3.30

1.61

3.30

/T*%8GTOC

3.05

1.18

3.05

1.18

11.43

13.11

11.43

13.11

31.03.2014

31.03.2013

TOTAL

2.68

31.03.2014

31.03.2013

Relative of key
managerial personnel

31.03.2013

31.03.2014

31.03.2013

Enterprise over
which key managerial
personnel and their
relative having
UKIPKECPVKPWGPEG

31.03.2014

31.03.2014

31.03.2013

Key Managerial
Personnel

31.03.2014

31.03.2014

31.03.2013

(` in Lacs)

Payable

Total
Trade/Other Receivable
Ambey Steel & Power
Pvt. Ltd.

0.30

0.30

Nova Iron & Steel Ltd.

4,150.53

439.72

4,150.53

439.72

Total

4, 150.53

440.02

41,50.53

440.02

13,692.00

13,692.00

359.93

232.55

Security Deposit
Atma Ram House
Investment Pvt.Ltd.

13692.00

13692.00

Adv.Paid for Share

Capital:For Preference
Shares:
Rohne Coal Company
Pvt. Ltd.

359.93

232.55

Investment :In Equity Shares:

Aarti Minerals (Austrila)
Pty.Ltd.
Ambey Steel & Power
Pvt. Ltd.

295.04

295.04

295.04

295.04

2,828.29

2,828.29

2,828.29

2,828.29

Rohne Coal Company

Pvt. Ltd.

24.09

24.09

24.09

24.09

691.98

691.98

691.98

691.98

716.07

716.07

3,839.40

3,839.40

101.48

7,802.25

7,739.38

In Preference Share:
Rohne Coal Company
Pvt. Ltd.
Total

3,123.33

3,123.33

Advance Received
Aarti International Ltd.

101.48

Loan & Interest

Recoverable
Nova Iron & Steel Ltd.

7,802.25

7739.38

Note:-4GNCVGFRCTV[TGNCVKQPUJKRKUCUKPFGPVKGFD[VJG%QORCP[CPFTGNKGFWRQPD[VJGCWFKVQTU

57

NOTE-39

Earning Per Share (EPS)

(` in Lacs)

Opening Balance of Equity Share

(A)

Total Number of Equity Shares for EPS

Potential Equity Shares On Conversion of Convertible Debts*

31.03.2014
Nos.

31.03.2013
Nos.

19,37,15,000

19,37,15,000
19,37,15,000

19,37,15,000
1,88,95,349
2,87,49,143

Potential Equity Shares On Conversion of Preference Shares*

Weighted Average of Diluted Potential Equity Shares
Weighted Average of Equity Shares for Diluted EPS
2TQVCHVGTVCZ

3,69,68,750

(B)

4,76,44,492

56,357
3,70,25,107

(C)=(A+B)

24,13,59,492

23,07,40,107

63,548.88
53.61

57,192.48

Less:- Preference dividend including tax thereon

0.13
57,192.35

Earnings Attributable To Equity Shareholders For EPS

Add: Interest on convertible portion of loan (Net of Tax and Interest Capitalised)
Add: Preference Dividend including tax thereon

(D)

53.61

1,937.53
0.13

Earnings Attributable To Equity Shareholders-For Diluted EPS

(E)

63,548.88

59,130.01

Basic Earning Per Share (`)

(D/A)

32.78

29.52

Diluted Earning Per Share (`)

* Conversion made at estimated issue price of ` 344/- (Previous year ` 320/-) Per equity share

(E/C)

26.33

25.63

NOTE-40

63,495.27
-

The Company has one joint venture namely Rohne Coal Company Private Limited incorporated in India. The Company has
24.09% holding in the joint venture.
$CUGFQPVJGCWFKVGFPCPEKCNUVCVGOGPVUTGEGKXGFVJGRTQRQTVKQPCVGUJCTGQHCUUGVUNKCDKNKVKGUKPEQOGCPFGZRGPFKVWTG
of the entity is as under:

Equity and Liabilities

Shareholders Funds
-Share Capital
-Reserves and Surplus

Share Application Money Pending Allotment

Current Liabilities
-Other Current Liabilities
-Short Term Provisions
Total
Non-Current Assets
-Tangible Assets
-Capital Work-In-Progress
-Long Terms Loans & Advances
Current Assets
-Current Investments
-Cash and Bank Balances
-Short Terms Loans and Advances
Total
Income
Other Income
Expenses
Administrative, Selling and Distribution Expenses
Capital Commitment

58

31.03.2014

(` in Lacs)
31.03.2013

716.07
-8.36
707.71

716.07
-8.55
707.52

342.29

268.88

0.10
0.27
0.37
1,050.37

0.01
0.27
0.28
976.68

304.86
703.72
36.95
1,045.53

301.29
641.96
31.47
974.72

4.82
.02
4.84
1,050.37

1.18
0.76
0.02
1.96
976.88

0.64

0.47

0.45
2.24

0.39
3.52

NOTE-41 Derivative Instruments

a)

The company has entered into derivatives instruments for hedging currency risk. Forward contracts entered into by the company
and outstanding as on 31.03.2014 are as follows :Previous Year
Current Year

Loan Payable

US$
Equivalent
(Lacs)

INR
Equivalent
(Lacs)

US$
Equivalent
(Lacs)

INR
Equivalent
(Lacs)

1,600.00

96,160.00

--

--

b) The Foreign currency exposure that are not hedged by derivatives instruments as on 31.03.2014 are as follows:i)

Amount receivable in foreign currency on account of :Sale of Goods

118.96

7,149.32

352.11

19,151.25

Advance to Supplier against Goods

467.62

28,104.07

303.11

16,486.21

0.30

18.22

0.30

16.49

Creditors/ Acceptances

2,625.56

1,57,796.26

4,100.69

2,23,037.77

Loans/Interest Payable

Fixed Deposit
ii)

NOTE-42

Amount payable in foreign currency on account of :10,705.12

6,43,377.85

12,203.80

6,63,756.01

Security Deposits

93.40

5,613.44

300.00

16,316.69

Advance received from Customers

13.21

793.93

1.83

99.59

Remitance in foreign currency on account of Dividend

The Company has paid dividend in respect of shares held by Non-Residents on repatriation basis. The amount remittable in this
respect is given herein below:
Previous Year

Current Year
(a) Number of Non-Resident Shareholders
(b) Number of Equity Shares held by them
(c) i)
ii)

Amount of dividend paid (Gross)

1,07,14,285

1,07,14,285

US$

INR

US$

INR

8,693.13

5,35,714.00

9,626.49

5,35,714.00

Tax deducted at source

iii) Year to which dividend relates

2012-13

2011-12

NOTE-43

$CNCPEGU QP CEEQWPV QH VTCFGQVJGT TGEGKXCDNGU VTCFGQVJGT RC[CDNGU CPF NQCPU CPF CFXCPEGU CTG UWDLGEV VQ VJG EQPTOCVKQP CPF
reconciliation with respective parties.

NOTE-44

Previous Year Figures have been rearranged/regrouped wherever considered necessary.

NOTE-45 OTHER ADDITIONAL INFORMATION

A.

DETAIL OF OPENING STOCK, CLOSING STOCK AND SALES

i) Opening Stock :H.R.Coil
Sponge Iron
Cold Rolled Steel Strips/Sheets/Coils
Pig Iron
Bars, Rods of Alloys Steel, Iron & Non Alloy Steel & Other Hot Rolled Products
Iron & Non Alloy Steel and Alloy Steel Ingots/Billets & Other Primary Forms
Galvanised Steel Strips/Sheets
Black & Galvanised Steel Tubes & Pipes & ERW Precision Tubes
Colour Coated Sheets
Cable Tape
Iron & Steel

59

31.03.2014
12,296.44
679.45
20,174.48
104.36
12,489.15
4,252.80
10,324.27
10,242.00
7,176.28
205.79
5,819.71
83,764.73

(` in Lacs)
31.03.2013
9,758.47
151.96
19,714.13
15.15
8,680.14
3,050.95
11,652.87
4,780.95
1,904.88
214.53
342.82
60,266.85

(` in Lacs)
ii) Closing Stock :Iron Ore Pellet
H.R.Coil
Sponge Iron
Cold Rolled Steel Strips/Sheets/Coils
Pig Iron
Bars, Rods of Alloys Steel, Iron & Non Alloy Steel & Other Hot Rolled Products
Iron & Non Alloy Steel and Alloy Steel Ingots/Billets & Other Primary Forms
Galvanised Steel Strips/Sheets
Black & Galvanised Steel Tubes & Pipes & ERW Precision Tubes
Colour Coated Sheets
Cable Tape
Iron & Steel

31.03.2014
78.66
9,081.60
123.66
31,166.66
87.78
10,409.37
2,504.73
10,714.04
14,113.05
5,852.50
170.86
1,269.86
85,572.77

31.03.2013
0.00
12,296.44
679.45
20,174.48
104.36
12,489.15
4,252.80
10,324.27
10,242.00
7,176.28
205.79
5,819.71
83,764.73

iii) Turnover : Iron Ore Pellet

31.03.2014
13,418.61

(` in Lacs)
31.03.2013
-

90,686.10

73,488.58

201.81

3,08,959.40

2,78,955.32

1,831.80

1,54,740.38

1,56,436.36

807.65

H.R. Coil
Sponge Iron
Cold Rolled Steel Strips/Sheets/Coils
Pig Iron
Bars, Rods of Alloys Steel, Iron & Non Alloy Steel & Other Hot Rolled Products
Metallurgical Coke
Iron & Non Alloy Steel and Alloy Steel Ingots/Billets & Other Primary Forms

5,682.38

20,588.06

Galvanised Steel Strips/Sheets

2,26,210.66

1,83,871.26

Black & Galvanised Steel Tubes & Pipes & ERW Precision Tubes

1,96,728.67

1,31,474.52

60,538.57

52,449.61

7,939.99

6,840.31

Colour Coated Sheets

Cable Tape
Power

2,897.24

2,411.87

Sale of Inputs

1,009.13

1,462.71

Iron & Steel

39,079.08

26,228.94

Scrap & Others

13,074.59

10,246.81

Export Incentive

B.

C.

Consumption of raw material and components :Raw Material Consumed

Iron Ore
Coal / Coke
Dolomite
Hot Rolled , Galvanised ,Sheet & Coil , Steel Scrap etc.
Zinc
Paint

6,895.49

5,461.04

11,28,869.75

9,51,747.19

89,581.83
1,09,217.05
4,819.79
2,19,523.76
37,502.33
5,267.43
4,65,912.19

97,887.24
1,17,198.91
4,727.65
1,82,812.87
22,783.21
5,361.14
4,30,771.02

33,238.10
33,238.10

29,165.64
29,165.64

Purchase of goods traded :Iron & Steel

60

D.

C.I.F. value of Imports :-

i)
ii)
iii)
iv)

Raw Material
Raw Material Traded
Stores & Spares
Capital Goods

E.
i)
ii)
iii)
iv)
v)
F.
i)

Expenditure incurred in Foreign Currency :Travelling

Interest
Bank Charges & Front End Fees
Commission
Others
Earning in Foreign Currency :(1$8CNWGQH'ZRQTVU

G.

i)

ii)

31.03.2014
94,369.96
25,630.24
5,967.37
21,683.13

(` in Lacs)
31.03.2013
97,540.26
23,805.81
3,989.02
66,076.84

162.97
28,990.13
19,017.33
119.28
321.46

44.82
26,884.89
27.23
140.48

2,26,569.04

1,50,194.12

Value of Imported and Indigenous Raw Material, Spares and Components consumed :-

Raw Material
Imported
Indigenous
Stores & Spares
Imported
Indigenous

31.03.2014
(` in Lacs)

% age

31.03.2013
(` in Lacs)

% age

1,17,743.54
3,48,168.65
4,65,912.19

25.27
74.73
100.00

1,26,619.63
3,04,151.39
4,30,771.02

29.39
70.61
100.00

6,721.62
22,457.50
29,179.12

23.04
76.96
100.00

4,449.04
24,416.73
28,865.78

15.41
84.59
100.00

As per our report of even date attached

FOR MEHRA GOEL & CO.
Chartered Accountants
Firm Registration No. : 000517N
Sd/(R.K. MEHRA)
PARTNER
M. NO.: 6102

Sd/(SANJAY SINGAL)
CHAIRMAN & MANAGING DIRECTOR

Sd/(R. P. GOYAL)
WHOLE TIME DIRECTOR

Sd/(ARUN K. AGRAWAL)
CHIEF FINANCIAL OFFICER

Sd/(AMARJEET SHARMA)
':'%76+8'&+4'%614
Sd/(R.K. GUPTA)
PRESIDENT &
COMPANY SECRETARY

Place : New Delhi

Date : 07th July, 2014

61

NOTES

62