BPSL - A Glance - Bhushan Steel€™re determined to break new ground, ... Ahmedabad, Rajkot, Surat...

To be a path breaker – that’s our guiding principle and our aim now and in the future. As a path breaker in steel, BPSL played a key role. And our company has flourished in its role as a path breaker. Today, we’re determined to continue blazing new trails. Our overriding aim is to continuously improve our performance and to create sustainable value for all stakeholders in the coming years.

If we relentlessly pursue what we call our strategic directions – focusing on path breaking growth markets, acting as a strong, reliable local partner for our customers and teaming up to use the power of BPSL – we’ll succeed.

Bhushan Power and Steel Limited (BPSL), is the forerunner of low-cost, world-class steel manufacturing in India. Our fully integrated and consolidated manufacturing facilities in Rengali, Odisha span the entire steel value chain, with a diverse product mix including the ultra thin segment, value added products and more. Our continuous ability to be a path breaker enables us to enhance our execution and delivery. The level of dedication and passion to excel gives us the confidence to meet our desired growth objectives.

Each and every one of our employees contributes to the success of our company – with their knowledge, commitment and pioneering spirit towards sustainability. Their efforts enable us to create long-term value and to provide answers to the most pressing challenges of our time.

On the operational front, we have made significant progress in the last year. The operational capabilities have also been strengthened on the back of investments made and the improvement initiatives that are targeted at efficiency enhancements, product rationalisation and restructuring. These actions should improve the competitiveness of our operations even though the market is expected to remain challenging. The operational initiatives across the Group are aimed to make BPSL a stronger and more competitive business that can withstand external shocks better and create long-term value for its stakeholders.

For us, being a path breaker means more than promoting new technologies and fostering innovation. We were a path breaker 40 years back, we are a path breaker today. We’re determined to break new ground, launching cutting-edge steel products that can be integrated into proven solutions. And our employees are pursuing this aim with great conviction and passion. The kind of teamwork that enables all players to give their best, shoulder their responsibilities and leverage their strengths is what brings forth true path breaking achievements, four decades ago or now. And our path breaking spirit ensures that we’ll continue providing answers to the questions of the day well into a sustainable future.

BPSL - A Glance

Board of Directors 1

Chairman’s Statement 2

Growth Story 5

Consolidated Financial Highlights 14

Director’s Report 15

Management Discussion & Analysis 45

Auditor’s Report 48

Balance Sheet 55

Profit & Loss Account 56

Cash Flow Statement 57

Notes Forming Part of Balance Sheet 58

Board of DirectorsMr. Sanjay Singal,Chairman & Managing Director

Mrs. Aarti Singal,Vice Chairperson &Director (Admn.)

Mr. R.P. GoyalDirector (Comm.)

Mr. H. C. VermaDirector

Mr. R. N. YadavDirector (Tech.)

Mr. Sanjiv Kumar SachdevNominee Director - IDBIw.e.f. 16.07.2016

Mr. Anil S. SupanekarDirector

Mr. Ashok Kumar KhushuDirector (Operation)w.e.f. 16.07.2016

Mr. Dinesh Kumar BehalDirector

Mr. Dinesh Kumar YadavDirector (Project)

President & Company SecretaryMr. R. K. Gupta

AuditorsM/s Mehra Goel & Co.,Chartered AccountantsNew Delhi

M/s S.K. Mittal & Co.,Chartered AccountantsNew Delhi

Cost AuditorsM/s J. K. Kabra & Co.,Cost AccountantsNew Delhi

Registered Office1st Floor, F Block,International Trade Tower,Nehru Place, New Delhi -110 019

Before 11-8-15 Regd. Off. was4th Floor, Tolstoy House,15-16 Tolstoy Marg,Cannaught Place, New Delhi-110001

PlantsPlot No. 3, Industrial Area, Phase-I, Chandigarh

Plot No. 71, Industrial Area, Phase-I, Chandigarh

Plot No. 83, Industrial Area, Phase-I, Chandigarh

Plot No. 141-142, Industrial Area, Phase-I, Chandigarh

Derabassi, Distt. Mohali (Punjab)

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

Village Thelkoloi and Dhubenchapper, Tehsil Rengali, Distt. Sambalpur (Odisha)

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

Marketing NetworkAndhra Pradesh : Hyderabad, Vijaywada, Secunderabad, Vishakhapatnam, TirupatiAssam : GuwahatiBihar : Patna, Gulabbagh (Purnia) Chandigarh : ChandigarhDelhi : DelhiGujarat : Ahmedabad, Rajkot, SuratHaryana : Faridabad, Panchkula, ManesarHimachal : Baddi, Parwanoo, Kullu, Amb, Damtal, Kala AmbJammu & Kashmir : JammuKarnataka : Bangalore, HubliKerala : KochiMaharashtra : Mumbai, Pune, Nagpur, Aurangabad, Nasik, RaigadMadhya Pradesh : IndoreOdisha : Bhubneshwar, Sambalpur, RourkelaPunjab : Amritsar, Jalandhar, Mandi- Gobind Garh, Derabassi, LudhianaRajasthan : Jaipur, BhiwadiTamil Nadu : Chennai, Hosur, CoimbatoreUttar Pradesh : Ghaziabad, Kanpur, GorakhpurWest Bengal : Kolkata, Siliguri, Belur, Hooghly, BighattiJharkhand : JamshedpurChhattisgarh : Raipur, RaigarhTripura : AgartalaUttrakhand : Pantnagar, Haridwar Dadra & NagarHaveli : Silvassa

Websitewww.bpsl.net

Bankers & Financial InstitutionsAxis Bank Ltd.Allahabad BankAndhra BankBank of BarodaBank of IndiaBank of MaharashtraBayern-LB, GermanyCanara BankCentral Bank of IndiaCorporation BankDena BankExport Import Bank of IndiaICICI BankIDBI Ltd.Indian BankIndian Overseas BankKarur Vysya BankKFW Bank, GermanyKFW-IPEX Bank, GermanyLife Insurance Corporation of IndiaOriental Bank of CommercePunjab National BankPunjab & Sind BankState Bank of Bikaner & JaipurState Bank of HyderabadState Bank of IndiaState Bank of MysoreState Bank of PatialaState Bank of TravancoreSyndicate BankThe South Indian Bank Ltd.The Jammu & Kashmir Bank Ltd. UCO BankUnited Bank of IndiaUnion Bank of IndiaUnicredit, AustriaVijaya Bank

Contents

1

From the CMD’S DeskFriends

The year gone by reflected many elements of the uncertainty and volatility we have come to expect in the geopolitical and economic situation across the world. In this environment, I have nothing but admiration for the manner in which we are navigating towards our goal of sustainable, growing and profitable future.

The operational endeavours are intended to make the BPSL Group stronger and more competitive that can withstand external shocks better and create long–term value for its stakeholders. The most important growth project for our Phase IV project is continuing at full speed. All efforts are concentrated on commissioning the state-of-the-art project as per schedule, which when ready, will help strengthen the product portfolio, help rebalance steelmaking capacities across the Group and enhance our market positioning and generate life cycle returns.

In the face of volatile raw material prices and systemic weakness in demand in key markets, the next few months will be challenging for BPSL. However, I believe, we will emerge stronger, through a series of management initiatives targeted at strengthening our core operations including investment in select facilities, product rationalisations and right–sizing of manufacturing assets.

To enhance and secure leadership in such an environment, we will have to become ever more agile both at a strategic and an organizational level. We need to identify opportunities with a sense of exigency. These will need to be converted by unleashing pioneering entrepreneurship; supported by leaders who foster experimentation and accept risks in the pursuit of new paths. In continuing to seize business opportunities, we have to stay on top of emerging technologies.

While we took significant initiatives to improve the operating performance, market challenges offset the benefits of internal improvement efforts leading to significant profit erosion and impairment of assets. These actions were absolutely critical for the future of our business, but more needs to be done to provide a sustainable business tomorrow. Building a sustainable society remains the core purpose of our business and the focus continued to be on health, livelihood, education, sports, ethnicity and disaster relief.

Indeed, the Sustainability Policy, commits us to “integrated environmental, social and ethical principles into its business” With the support of our sustainability practitioners and more environmentally conscious leaders, assisted in turn by climate and water champions we have already trained, and via appropriate deployment of technology and innovation, I am confident that BPSL will become a partners of choice for customers and communities across the world.

We’ll continue to use the power of BPSL. We’ll leverage our orientation, size and structure for the benefit of our customers, suppliers and employees. Already today, cooperation across our sectors and divisions and our external partnerships are enabling us to offer our customers a uniquely diverse portfolio – not least of all thanks to our outstanding and innovative employees, who are one of our greatest strengths. The focus areas that will help us use our power even more fully are the following - encourage lifelong learning and development, empower our diverse and engaged people all across and stand for integrity.

I would like to place on record my appreciation to all employees, lenders, shareholders and other stakeholders, for their dedication and support. BPSL is committed to improving the efficiencies in its operations and differentiating itself via customer-centric innovation in product and services, and build a stronger and sustainable future. With their support, we will surpass all challenges.

With best wishes

SANJAY SINGAL DIN 00006579Chairman & Managing Director

Pathbreaking Actions for Growth...BPSL is a path breaking player. In the last few years, we’ve transformed our organisation and

continuously strengthened our competitiveness through our company programmes. Our portfolio

is geared to attractive growth markets. In terms of profitability, we’ve closed the gap to our

competitors or overtaken them. As an integrated steel company, we’re an emerging market

leader. It’s from this position of strength that we’re approaching the future. With the BPSL growth

plan and the goal of continuous improvement relative to the market and our competitors, a path

breaking BPSL is providing the framework.

5

Framework or Sustainable Value Creation...Our actions are geared to the dynamics of our markets. We measure our performance against

our best competitors. Our goal and our aspiration is to consistently outperform our competitors

and set standards for leadership in steel – in product diversification, operational strength, as

well as financial performance. Our growth plan defines indicators for revenue growth, for capital

efficiency and profitability, and for the optimization of our capital structure. These indicators play

a key role in driving the value of our company.

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FOCUS on Sustainable Growth Markets...Our path breaking spirit is the basis of our success: we break new ground and forge ahead

into growth markets while thinking sustainably and examining every challenge from various

perspectives. Our activities are focused on establishing leading positions in innovation-driven

markets and markets with long-term growth potential. We want to play a leading role in these

markets. To this end, our focus areas are to be a path breaker in discerning steel markets and

strengthen our portfolio.

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Strengthen our Portfolio...A key prerequisite for long-term, profitable growth is to focus our portfolio on attractive markets.

At the heart of our portfolio policy is the principle of achieving or maintaining leadership in all

our current and future markets. Essential to profitability and growth, these leadership positions

enable us to steadily increase our company value. As part of our Phase V project, our backward

integration will comprise beneficiation and pelletisation. Our Iron making capabilities will comprise

sponge iron, hot metal, pig iron, while steel making will include HR coil, billets and bloom. Our

downstream facilities will encompass value added products – CR coil/sheet, galvanized coil/

sheet, galvalume sheet, colour coated sheet/pipe and tube, wire rod, bars, bright bars, cable

tape etc.

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1981 - Rolling Mill Project commissioned at Chandigarh for Round and Narrow Strips.

1985 - Backward Integration Project for Steel Melting facilities.

1986 - Upgrading of Mini Steel Plant with continuous casting and ladle furnace facilities.

1997 - Commissioning of Narrow Width Cold Rolling Project at Chandigarh.

1998 - Commissioning of Precision Pipe Project at Chandigarh.

2001 - Commissioning of Cold Rolling & Galvanizing Complex at Kolkata.

2002 - Addition of narrow width Cold Rolling facilities at Kolkata.

2003 - Expansion of wide width Cold Rolling facilities, ERW Water Pipes & Tubes down stream facilities at

Kolkata.

2004 - Further expansion of Cold Rolling facilities at Kolkata.

2005 - Commissioning of Odisha Project Phase-I consisting of DRI Kilns, Steel Making Facilities, Coal Washery

and 100 MW Power Plant.

2008 - Commissioning of Odisha Project Phase-II consisting of HR Coil Mill, Steel making, Blast Furnace, Sinter

Plant, Coke oven Plant, Oxygen Plant and Lime & Calcining Plant.

2009 - Commissioning of 3.5 million tpa Coal Washery, 146 MW Power Plant under Phase III of Odisha Project.

2010 - Commissioning of 130 MW Power Plant and Electric Arc Furnace under Phase III of Odisha Project.

2011 - Commissioning of DRI Kilns, Electric Arc Furnace, 2nd CSP Caster & 6th Strand along with Tunnel Furnace,

Cold Rolling Mill Complex and Galvanising under Phase-IV of Odisha Project.

2012 - Commissioning of DRI Kilns, Power Plant, Oxygen Plant, Lime Calcining Plant, Galvalume, Colour

Coating, Precision Tube & Pipe Plant under Odisha Phase-IV Project and implementation of further

expansion of Odisha Project under Phase V consisting of DRI Kilns, Iron ore Beneficiation Plant, Pellet

Plant, Cold Rolling, Pickling Line, Precision Tube Mill, Black Pipe Plant & Bright Bar finishing lines.

2013 - Commissioning of Cold Rolling Mill, Pickling Line, Precision Tube Mill, Black Pipe Plant and Bright Bar

Finishing Line under Odisha Phase-V Project.

2014 - Phase-V Sucessfully Commissioned ahead of its schedule consisting of Iron Ore Beneficiation Plant,

Pellet Plant, Pickling Line, Cold Rolling Mill, Precision Tube Mill, Black Pipe Plant and Bright Bar Finishing

Lines.

2015 - Implementation of further expanion of Odisha project under phase VI consisting of Blast Furnance, Coke

Oven Plant, Sinter Plant, Steel Melting Shop, Upgradation of CSP, Billet & Bloom Caster, Heavy Bar Mill, AOD

Convertor, Vaccum Ingot Casting, Lime Plant out of which Coil to Bar & Coil Drawing Line and Centerless

Grinding Line have already been commissioned ahead of schedule.

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KEY FINANCIAL INDICATORS AT A GLANCE( in Crores)

2012 2013 2014 2015 2016

Gross Sales 7,282 9,517 11,289 10,196 8,503

Export Sales 1,520 1,631 2,429 1,624 1,119

EBITDA 2,056 2,705 3,252 1,993 1,194

Net Profit /(Loss) 534 572 635 (1,363) (2,433)

Cash Profit /(Loss) after Tax 1,320 1,623 1,814 (792) (2,620)

Capital 194 201 237 240 240

Net Worth 7,622 8,560 10,166 8,760 5,278

Gross Block 23,074 30,749 37,177 40,686 44,259

EBITDA to Net Sales 30.46 31.20 31.33 21.47 15.49

Net Debt Equity Ratio 1.91 2.51 2.43 3.26 5.85

Total Net Debt to Equity 2.26 2.91 2.90 3.83 7.03

TOL/TNW 2.43 3.07 3.11 4.12 7.94

Current Ratio 1.34 1.33 1.01 0.95 0.67

FACR 1.68 1.51 1.52 1.36 1.35

DSCR 1.38 1.31 1.12 0.49 0.08

Interest Coverage Ratio 2.79 2.50 2.26 0.72 0.31

EPS Rs. 37 30 33 (70) (126)

Book Value Rs. 323 381 416 274 148

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Board’s ReportDear Members,

Your Directors have pleasure to present 18th Annual Report on the business and operations of the Company alongwith Audited Financial Statements for the year ended 31st March 2016

HIGHLIGHTS & FINANCIAL SUMMARY( in Crores)

S No Particulars Current Year Previous Year

a. Revenue from operations (including exports) 8,503.18 10,196.11

b. Exports 1,118.63 1,623.97

c. Profit Before Interest & Depreciation & Tax 1,194.18 1,992.58

d. Less: Finance Cost 3,814.17 2,784.39

e. Less: Depreciation 862.38 668.36

f. Profit/(Loss) Before Tax (3,482.37) (1,460.17)

g. Less: Provision for Tax

- Earlier Years 0.002 21.44

- MAT Credit entitlement/written off - 23.50

- Deferred Tax (1,049.83) (142.00)

h. Profit/(Loss) after Tax (2,432.54) (1,363.11)

i. Add: Profit brought forward from Previous Year 423.87 1,788.01

j. Profit/(Loss) available for appropriations (2,008.67) 424.90

Which the Directors appropriated as under: -

k. Proposed dividend on Cumulative compulsorily

convertible Preference Shares -- 0.86

l. Dividend Tax -- 0.17

m. Transferred to General Reserve -- --

n. Balance carried to Balance Sheet (2,008.67) 423.87

o. Total (2,008.67) 424.90

p. Cash Profit /(Loss) (2,619.99) (791.81)

q. Net Worth 4,418.58 6,851.12

During the year under report there is no change in the nature of business activities.

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Highlights of Global Steel Industry The year 2015-16 was remained passive for world steel. Tata Steel off loads long products business in Europe. World number one steel making ArcelorMittal is preparing to shed about 10% of its workforce in France through sale of subsidiaries. The continued slowdown in consumption of steel in real estate sector worldwide is the one of the reason behind the slowdown. According to OECD Steel Committee, global crude steelmaking between 2000 to 2014 substantially increased by an unprecedented expansion in capacity by China. World crude steel production stood at 1622 million metric tonnes (MMT) during 2015, It is projected to grow further to 2361 million metric tonnes (MMT) by 2017 about 700 MMT more than in 2015.

Chinese Government is taking steps to address the stagnating growth in steel sector. European steel demand has been hit by economic crisis in Italy and Brexit move by Britain. The latest economic data does point to a recovery in the European economy. However there are still several sectors, like housing, where demand is weak.

India is the third largest steel producer with a total installed capacity of 110 MMT but cheap imports from China, Russia, Japan and South Korea have hurt the Indian steel industry.

Highlights of Indian Steel Industry India has taken a tactical decision to back a recent G20 move to curb excess steel capacity and subsidies given by countries to their steel makers, although the government fears that this may keep the local industry from availing itself of state support in the form of a minimum import price. Besides imposing a minimum import price,(MIP) India is carrying out an anti-dumping probe against steel imports from some countries. Indian Government imposed MIP in the range of $341to $752 per tonnes on 173 steel products for six months in February 2016, aimed at curbing rising imports at predatory prices by countries such as China, Japan, Korea and Russia. A sharp in the input costs has pushed steel industry into a corner. Steel Industry has been adversely impacted by increasing cost of inputs such as metcoke, Zinc and some of the micro alloys required for valued added grades. This has resulted in increased cost of production which will necessitate increase in selling price.

Ministry of steel has notified 15 steel products which are critical in building the country’s infrastructure under the mandatory certification mark scheme of BIS in the year 2012. Subsequently 15 more products have been notified on 18.12.2015 taking it to total 30 products under mandatory quality standards. In order to achieve the growth target of production of 300 million tonnes of Steel by 2025 under National Steel Policy 2005, a concept of Special Purpose Vehicle has been proposed with respective state governments of Chhattisgarh, Odisha, Jharkhand and Karnataka. India is large producer of sponge with a large number of coal based units, located in mineral rich States of the Country. Over the years coal based route has emerged as a key contributor and accounted for 90% of total sponge iron production 2014-15.

India’s steel demand is expected to grow by 25% till 2030. Lower capacity utilization is a negative sign for global steel industry. With capacity utilization rate, competition increases between existing industry players. This put pressure on steel prices.

Steel, Power and Infrastructure industries are expected to generate more employment. Industry expecting reduction of further interest rate cut from Reserve Bank of India and steps to keep the foreign exchange fluctuations under control to strength the Indian currency. Govt. has enacted Mines and Mineral (Development & Regulation) Amendment Act 2015 effective from January 2015 for allocation of mines through E-auction system. All applications for iron ore blocks were lapsed on the date of amendment act except those applications for mining lease or prospective lease which has letter of intent (by whatever name called) by the State. The E-auction process may facilitate quick disposal of various approvals pending and smooth operation of mines which may turn around the steel industry.

Increase in urban population to an estimation of 600 million by 2030 from the current level of 400 million, emergence of the rural market for steel currently consuming around 10 kg per annum by projects like Bharat Nirman, Pradhan Mantri Gram Sadak Yojana, Rajiv Gandhi Awaas Yojana among others will accelerate the growth of steel production in near future. However, based on the assessment of the current ongoing projects, both in greenfield and brownfield, 12th Five Year Plan has projected that domestic crude steel capacity in the county is likely to be 140 million tonnes by 2016-17 and has the potential to reach 149 million tonnes.

The country is expected to become the 2nd largest producer of crude steel in the world soon, provided all requirements for creation of fresh capacity are adequately met. India is also an important producer of pig iron. The private sector accounted for 93% of total production for sale of pig iron in the country.

Operational Performance and Company’s Affairs Your Company achieved gross revenue of Rs 8,503.18 crores from operation as compared to Rs 10,196.11 crores. Company earned an operating income of Rs 1,194.18 Crores. However for the reasons stated, Company incurred loss of Rs 2,432.54 Crores as compared to last year loss of Rs 1,363.11 crores. Unavailability of coal due to cancellation of coal blocks pursuant to order of Supreme Court of India vide its judgment dated 25.08.2014 and 24.09.2014, further litigation in E-auction of coal blocks in various courts caused lower capacity utilization in the year 2015-16 and squeezed the margins. E-auction for open sale of coal stopped by Coal India Ltd also affected supply of Coal and company procured imported raw material at higher price. Situation was further aggravated when State Govt. stopped all unauthorized running mines of coal and iron ore were closed and a result the timely availability of raw material also get affected. Iron ore, coal and power are the important raw material for producing steel. Due to shortage of coal, power generation also got affected. The cost of imported coal and iron ore is higher than domestic available raw material besides higher freight cost in import of raw material. In view of depressed international prices, Government implemented Minimum Import Price (MIP) Scheme for six months, which too could not stop the downward trend of global steel prices. The rupee devaluation for the domestic sales made the cost of production uneconomic. The above factors resulted into low production and low realization resulting in difficulties in servicing of debts obligations of lenders consequently higher finance cost.

Exports Exports turnover of your Company has decreased from Rs 1,623.97 Crores in 2014-15 to Rs 1,118.63 crore in 2015-16. Products were exported to about 35 countries. Large part of the exports is made to African and Asian countries. Our products otherwise confirm international quality standards coupled with efficacy of sternest delivery tests applied worldwide thereby making presence in the international market.

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MinesGlobal economic slump has delayed the government’s plan of opening coal sector to private commercial mining. Slump in international coal prices and financial stress in Steel and Aluminium sectors has forced government to resume fourth round of bidding when the market improves. Government is not sure whether coal blocks auction for commercial mining will generate adequate interest among mining companies. Indian Bureau of Mines (IBM) , which promotes scientific development of mineral resources , will be the nodal agency to implement the satellite monitoring measure through GPS ( Global Positioning System) enabling defection of illegal mining.

Coking CoalRohne Coking Coal Block- A Joint Venture Rohne Coal Block was allotted to Rohne Coal Company Pvt. Ltd., a Joint Venture with JSW Steel Ltd and Jai Balaji Steel Ltd, was cancelled pursuant to the order of Honble Supreme Court of India in 2014. The said coal block is yet to be notified for E-auction. Company holds 24.09% shareholding in Joint Venture. Government of Jharkhand has allotted 3,076.39 Acres land. The joint venture company has purchased 236.060 acres of private land. Ministry of Coal, Government of India has accorded prior approval under MMDRA for mining lease over coal bearing of 778 hectares and prospecting license of over an unexplored area of 420 hectares. Company has contributed by way of capital investment in the Joint Venture.

Non-Coking CoalJamkhani and Bijahan Coal Blocks in the State of Odisha and Patal (East) Coal Block in the State of Jharkhand has been cancelled pursuant to the order of Hon’ble Supreme Court of India. The other two coal blocks are yet to be notified for e-auction. Company as of now depends on supply from Coal India Ltd and market sources for coal.

Iron Ore Thakurani & Rakma Marsuan Tibira in OdishaPursuant to the order of Honble Supreme Court of India dated 14.03.2012 and 24.04.2014, State of Odisha on 05.12.2012 and 25.04.2014 recommended the Thankurani Iron ore mine and Rakma Marsuan Tibira iron ore mine in the State of Odisha. Government amended the MMDR Act and approval of Central Government is no longer required for mining lease of iron ore mines. However All application pending for allotment as on date of amendment act, has been cancelled except those application in which letter of intent (by whatever name called) has been made by State Govt to Centre. Company has filed Contempt petition in Supreme Court seeking direction to State to execute mining lease in respect of Thakurani and Rakma Marsua Tibira in Odisha iron ore mines, since state has already recommended the said mines to Central Government pursuant to the Honble Supreme Court Orders.

Chatuburu In JharkhandCompany has been allotted iron ore block having estimated reserves of about 35 million tons in Chatuburu block in the State of Jharkhand. Approval of Central Government has been received. However company may be required to be file writ petition for execution of mining lease in view of amendments in MMDR Act, 2015.

Power India has a total installed capacity of 303 gigawatt (GW) at present , of which 211 GW is thermal and 42 GW renewal The Capacity addition plan will take total generation capacity to 564 GW proposed to be achieved through 100 GW of solar capacity, 75 GW of other renewal sources and 86 GW of coal –fired plants and nuclear.

The targeted 1,500 million tonne of coal by 2020 will be used by the power sector. Power Ministry is currently planning to set up ultra mega power projects (UMPPs) based on imported coal. The country’s power deficit may rise to 5.6% by fiscal 2021-22 from 2.6% of peak demand in the fiscal year 2015-16. Affordable and sustainable electricity is an essential requirements for propelling the India growth story and all potential sources of energy security. India may require 7% annual growth in electricity to sustain annual gross domestic product growth of around 8-9%. By 2034 for 300 million people, India will require an additional power supply capacity of 450 GW. The Ministry of Renewable Energy has issued fresh draft guidelines for onshore wind power projects. The country has installed 26,736 MW of wind power, the fourth highest in the world after China, US and Germany. Country has set target of 60,000 MW of wind power by 2022. Per capital consumption of electricity has increased by about 51% from 2005-06 to 2013-14 from 631 kWh to 957 kWh.

To meet power requirement of the Company’s plant at Odisha, 506 MW captive power plant has been made operational.

Projects Odisha - Expansion Phase –VIYour company is in progress of implementing the facilities under Phase VI and setting up Blast Furnance, Coke Oven Plant, Sinter Plant, Steel Melting Shop, Upgradation of CSP, Billet & Bloom Caster, Heavy Bar Mill, AOD Convertor, Vaccum Ingot Casting, Lime Plant out of which Coil to Bar & Coil Drawing Line and Centerless Grinding Line have already been commissioned ahead of schedule. Company envisages the increase in production capacity to 3.4 MTPA with the commissioning of Phase VI.

Balancing Facilities Your Company will have surplus intermediate products i.e. pellet, coke, sinter and pig iron. The implementation and commissioning of balancing facilities i.e. Blast Furnace, Basic Oxygen Furnace, USP, Air Separation Plant and Lime and Dolomite Kiln have been proposed for effective use of surplus capacities after commercial production of facilities under Phase VI. in view the available infrastructure, economy of scale, raw material availability, for better control over the supply chain and financial growth. The balancing facilities when implemented will increase the estimated production capacity of the Company to 5.5 million tonnes. The project proposed to be completed by September 2020.

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Jharkhand & Chhattisgarh - Integrated Steel & Power PlantCompany is focusing on the completion of Phase VI facilities at its Orissa Plant for capacity expansion presently, hence kept the implementation of facilities at Jharkhand and Chhattisgarh of their integrated Steel & Power Plant pending, however will be reviewed at appropriate stage.

FinanceDuring the year under report, Joint Lenders Forum (JLF) of lender banks approved Corrective Action Plan (CAP) and rectification approach and refinancing/ rescheduling of loans of the Company of Rs. 26,798 Crores (comprising Rs 17,998 Crores re-scheduling of existing loans, Maintenance Capex of Rs 5,700 Crores (includes Rs 600 crores for development of mines) and conversion of interest into equity of Rs. 3,100 crore at premium) on the assurance of lender banks for implementation of proposed CAP and rectification approach and rescheduling of above said loans. CAP has been sanctioned under 5/25 scheme in terms of Reserve Bank of India Circular No. DBR.NO.BB.BC.53/21.04.132/2014-2015 dated 15th December 2014. All lender banks agreed to take up their respective shares of loans as worked out in the CAP. Lenders have sanctioned refinancing (5/25) of Rs. 5,699 Crores and implemented the same with Rs. 5,595 Crores. External Commercial Borrowing (ECB) loans of Rs. 4,349 Crores and lenders approved refinancing of ECB to RTL of Rs, 4,009 Crores. Subsequently, in view of Reserve Bank of India (RBI) clarification dated 24th September, 2015, company requested for refinancing of ECB to ECB and Lenders have implemented the same for Rs. 2,298 Crores. In respect of EPBG facility, majority of the lenders approved EPBG facility and issued EPBG of Rs. 1,843 Crores so far. Lenders sanctioned Rs. 5,105 Crores and disbursed Rs. 4,260 Crores so far towards additional capex.

Term LendingDuring the year under review and till the end of March 2016, Company has availed Rupee Term Loan of Rs. 4,412.41 Crore, out of sanctioned Rupee Term Loan of Rs. 5,060 Crore from Indian Lenders, ECA of Rs. 939.42 Crore out of sanctioned ECA of Rs. 1,816 Crore from KFW IPEX GmbH (Germany), Deutsche Bank SPA (Italy) and Intesa Sanpaolo SPA (Hongkong) for Odisha Phase VI Project. The company has received Long Term Loan of about Rs. 4,203.37 Crore.

Working CapitalWorking Capital Facilities from consortium of banks lead by Punjab National Bank for the financial year 2014- 15 has been assessed to Rs. 8,741 crore (Fund Based Rs.4,250 Crore and Non Fund Based Rs. 4,491 Crore) excluding BG limit for Rs 550 Crores for Coal blocks. For the financial year 2015-16, the lead bank is yet to assess working capital facilities.

Credit RatingThe credit rating agencies Fitch Ratings India (P) Limited and Credit Analysis & Research Limited (CARE Ratings) has suspended the rating of the company

Extract of Annual ReturnExtract of Annual Return in MGT 9 of the Company is at Annexure A to the Board’s Report.

Meetings of the Board Six meetings of the Board of Directors were held during the year including one meeting of independent director. (Also refer Annexure H – Corporate Governance)

Directors’ Responsibility Statement Your Directors state that:

a) in the preparation of the annual accounts for the year ended March 31, 2016, the applicable accounting standards read with requirements set out under Schedule III to the Act, have been followed and there are no material departures from the same;

b) the Directors have selected such accounting policies and applied them consistently and made judgements and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company as at March 31, 2016 and of the profit/loss of the Company for the year ended on that date;

c) the Directors have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities;

d) the Directors have prepared the annual accounts on a ‘going concern’ basis; e) being unlisted company, the contents of this clause is not applicable. However the Directors have laid down internal financial controls to be followed

by the Company and that such internal financial controls are adequate and are operating effectively; and f) the Directors have devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems are adequate

and operating effectively.

Directors During the financial year and till the date of Board’ Report the following changes in directorship of the Company has taken place.Mr. T.C.A. Ranganathan (DIN 03091352) has been appointed as Nominee Director by State Bank of India w.e.f 27th November 2015 and subsequently he resigned w.e.f. 31st March 2016.

IDBI Bank Limited has withdrawn the nomination of Mr. Dev Dutt Das (DIN 06620284) from Board of the Company w.e.f 1st January 2016. Mr. Sanjiv Kumar Sachdev (DIN 02428623) has been nominated w.e.f 16th July 2016 in place of Mr. Dev Dutt Das.

Mr. R. D. Batra (DIN 00007769) has resigned from Directorship of the Company w.e.f 6th January 2016 and Mr. Jimmy Mahtani has (DIN 00996110) has resigned from Directorship of the Company w.e.f 31st May 2016.

18

Mr. Ashok Kumar Khushu (DIN 00278227) has been appointed as Additional Director of the Company w.e.f 16th July 2016 and will hold office till the conclusion of ensuing Annual General Meeting and subsequently appointed as Director (Operation) w.e.f 16th July 2016.

In accordance with the provisions of the Companies Act, 2013 and the Company’s Articles of Association, Mr. Sanjay Singal (00006579), Chairman & Managing Director and Mrs. Aarti Singal (00007698), Vice Chairperson & Director (Administration) and Mr. Hardev Chand Verma (DIN 00007681) are liable to retire by rotation at the ensuing Annual General Meeting. Being eligible, they have offered themselves for re-appointment.

Neither the Managing Director nor the Whole-time Directors of the Company receive any remuneration or commission from any of its associate/joint venture company or subsidiary or any other entity.

Key Managerial PersonnelMr. R.P. Goyal, Director (Commercial), Mr. R. K. Gupta, President & Company Secretary and Mr. Arun K. Agrawal, Chief Financial Officer, are Key Managerial Personnel under the provisions of Companies Act, 2013. During the year there is no change in key managerial personnel.

Declaration of IndependenceCompany has received declarations from Mr. Anil S Supanekar and Mr Dinesh Kumar Behal, Independent Director, who were appointed directors for a term of 5 year from the date of 16th Annual General Meeting, confirming independence under the provisions of Companies Act, 2013.

Director Identification Number (DIN)Director Identification Number (DIN) obtained by the present directors under Companies (Director Identification Number) Rules, 2006 is valid DIN under Companies Appointment and Qualification of Directors), Rules 2014.

Policy on Directors’ Remuneration Policy & Appointment of Independent Director The Company’s remuneration policy is directed towards rewarding performance based on review of achievements periodically. The remuneration policy is in consonance with the existing industry practice.

The Company has formulated Remuneration policy and General Terms and Conditions for appointment of Independent Directors. Policies, containing criteria for determining qualifications, positive attributes, independence of directors and other matters, are available at company’s website http://www.bpsl.net/policy-documents.html. The said policies were recommended by Nomination and Remuneration Committee. The Remuneration policy is annexed to the Board’s Report at Annexure B

The tenure of office of the Managing Director and Director (Technical) is for five years from their respective dates of re-appointments, and of remaining executive directors has been appointed/re-appointed for three years from the respective date of appointment/re-appointment and can be terminated by either party by giving notice in writing as per term of agreements. There were no other pecuniary relationships or transactions of Executive Directors vis-à-vis the Company except payment of remuneration.

Familiarization Programme PolicyThe Company has framed Familiarization Programme Policy for Independent Directors. Their roles, rights, responsibilities in the Company, nature of the industry in which the Company operates, business model of the Company and related matters are regularly discussed with the Independent Directors in meetings. Familiarization Programme Policy can be assessed at http://www.bpsl.net/policy-documents.html

Particulars of employees under Rule 5(2) and 5(3) of Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 Pursuant to Notification dated 30th June 2016, none of the employees in the company drawing remuneration in excess of limits stated under Rule 5(2) and 5(3) of Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 as amended by above notification . Hence the said information be treated as NIl.

Audit Committee In compliance with the provisions of Section 177 of Companies Act, 2013, Audit Committee of Directors has been re-constituted on 23.03.2016 and comprises two independent director namely Mr. Dinesh Kumar Behal, Mr. Anil S. Supanekar, and one Executive Director Mr. R. P. Goyal, as Members of the Committee. Mr Dinesh Kumar Behal Independent Director is Chairman of the Committee. Board has accepted all recommendations of the Committee meetings. The Committee constituted confirms the requirement of section 177 of the Companies Act, 2013. Committee recommended Risk Management Policy, Policy on related party transaction and Vigil Mechanism can be assessed on Company’s website at http://www.bpsl.net/policy-documents.html. (Also refer Annexure G -Corporate Governance)

Auditors and Auditors’ Report Statutory Auditors M/s. Mehra Goel & Co., Chartered Accountants, New Delhi were appointed Auditors of the Company for consecutive three years and hold office till the conclusion of the ensuing 19th Annual General Meeting subject to ratification of re-appointment in each annual general meeting. Board recommends the ratification for appointment of M/s. Mehra Goel & Co. Board recommends the re-appointed M/s S. K. Mittal & Co., Chartered Accountants, New Delhi as Additional Statutory Auditors of the Company to hold office till the conclusion of 19th annual general meeting and their appointment will be placed in Annual General Meeting for ratification.

The Company has invested for development of coal block(s) which has been cancelled pursuant to the Supreme Court order. As per policy of the Government, the said coal block(s) will be auctioned in future and the investment made by the earlier allottees will be reimbursed by the new allottees and Government

19

will determine the actual amount of re-imbursement. Hence effect of such investment as reported by the Auditors in their report will be taken on actual receipt. The emphasis of matter is duly addressed in notes to financial statements. Except above, the Audit Report does not contain any other qualification or reservation or adverse remark or disclaimer. Other observation, if any, referred to in the Auditors’ Report are self-explanatory and do not call for any further comments.

Company is of the opinion that the perquisites paid to the managerial personnel require no approval from the Central Government and hence amount paid is within the limits sanctioned. However company has sought clarification from the Central Government, and if need be, requested for sanction vide letters dated 11.07.2016.

Cost AuditorsPursuant to Section 148(3) of the Companies Act, 2013, M/s. J.K. Kabra & Co., Cost Accountants, New Delhi were appointed Cost Auditors for the year 2015-16. Board has also re-appointed M/s. J.K. Kabra & Co., Cost Accountants, New Delhi, as Cost Auditors for the financial year 2016-2017 and Company has received a certificate under Section 139 and 141 of the Companies Act, 2013 from M/s. J.K. Kabra & Co., Cost Accountants, New Delhi confirming their eligibility. Pursuant to section 148 (3) of Companies Act, 2013, the remuneration to Cost Auditors requires ratification by the members in the ensuing meeting.

Cost Auditors have not made any qualification or reservation or adverse remarks or disclaimer on the Cost Audit Report for year ended 31st March 2015.

Secretarial AuditorThe Board has appointed M/s A. Arora & Co. Company Secretaries in Whole Time Practice, Chandigarh, to conduct Secretarial Audit for the financial year 2015-16. The Secretarial Audit Report for the financial year ended March 31, 2016 is annexed herewith marked as Annexure C to this Report. The Secretarial Audit Report does not contain any qualification, reservation or adverse remark or disclaimer.

Internal Auditors and Internal Financial ControlsThe Company has appointed Mr. Rajesh Madan, an employee and Chartered Accountant by profession as Internal Auditor for the year 2016-17. The Internal Auditors reports were placed before the Audit Committee. During the year, such controls were tested and no reportable material weakness in the design or operation was observed.

The Company has in place an adequate system of internal financial control with reference to financial statements implemented by management having regard to size and nature of business activities of the Company to achieve operational efficiency, accuracy, compliance of policies and procedures, law and regulations and close monitoring. The exercise is carried out across all locations of the Company. This ensures the control and safeguard of the Company’s assets against loss through inefficiency, waste, negligence or fraud. Internal Audit functioning is regularly reviewed by the Audit Committee. A follow up audit is carried out to review the progress on recommendation, if any, made.

Conservation of Energy, Technology Absorption and Foreign Exchange earnings and outgoThe particulars relating to Conservation of Energy, Technology Absorption and Foreign Exchange Earnings and Outgo as required to be disclosed under the Act, are provided in Annexure D forming part of this Report.

Particulars of Loans given, Investments made, Guarantees given and Securities providedDuring the year under report company has not given any guarantee or security for loan to other body corporates. Particulars of investments made and loan given are provided in the financial statements (Please refer to Note 13, 16 and 51 to the financial statement) attached to Board’s Report.

Contracts and Arrangements with the related partiesDuring the year under Report, contracts and arrangements entered by the Company pursuant to Section 188(1) of the Act with related parties were in the ordinary course of business and on an arms’ length basis. Omnibus approvals were obtained from the Audit Committee and Board. During the year company has not entered into any contract /arrangement with such party which could be considered material in accordance with the policy of the Company on related party transactions. Your directors draw attention of the members to Note No 39 to the financial statement relating to disclosure under AS 18. The disclosure of contracts / arrangement in AOC 2 is annexed at Annexure E.

Capital & Reserves During the year under report, Company has not issued securities In view of the losses incurred during the year, no amount has been transferred to General Reserve. Company has not issued equity shares with differential voting rights as to dividend, voting rights or otherwise during the year. Company being unlisted company, Issue of shares (including sweat equity shares) to employees of the Company under any scheme be treated as Nil

DividendIn view of the losses incurred during the year under report, Board has not recommended payment of Dividend on Equity Shares and Preference Shares. Hence no provision for dividend has been made for the year ended 31st March 2016.

Material Changes There are no material changes affecting financial position of the Company which have occurred between the date of end of financial year and date of Board Report except Company has allotted 10,16,109 nos Cumulative Compulsorily Convertible Preference Shares of Rs. 100 each at coupon rate of 2% p.a at premium on exercise of option of term attached to loan for conversion of loan into security at a value arrived as per valuation report convertible into equity shares within five years or before Initial Public Offer whichever is earlier.

20

Risk ManagementCompany has been exporting its products to about 35 countries and importing capital goods and raw material. There is always a risk of foreign exchange fluctuation. The company has formulated a Risk Management Policy, identified element and factors of risks and Management to mitigation risks which can be reached at company’s website at http://www.bpsl.net/policy-documents.html

Corporate Social Responsibility The Corporate Social Responsibility Committee (CSR Committee) was constituted by the Board of Directors on 7th July 2014 and re-constituted on 23rd March 2016 upon resignation of Mr. R. D. Batra from Directorship of the Company and ceased to be member of the Committee. Presently Mr. R P Goyal, Mr. Dinesh Kumar Yadav, Directors and Mr Dinesh Kumar Behal, (Independent Director) are members of the CSR Committee. Corporate Social Responsibility Policy (CSR Policy) indicating the activities to be undertaken by the Company, has been approved by the Board. CSR Policy can be accessed on the Company’s website at http://www.bpsl.net/policy-documents.html. Annual Report on CSR activities is annexed at Annexure F. The Company undertook need based activities in compliance with Schedule VII to the Act. During the year company has spent Rs 2.38 Crores i.e. around 2% of average net profit of last three financial years and more than 100% of budgeted amount on CSR activities.

Subsidiaries, Joint Ventures and Associate CompaniesDuring the year company has formed a joint venture (subsidiary) with 95% of shareholding. Company has not contributed in share capital of the M/s Global Steel & Mineral Pte. Ltd incorporated in Singapore hence the same is not treated as Subsidiary. Company has three associate companies. The information pursuant to section 129(3) as amended in AOC-1 is at Annexure - G. Except as stated above, during the year, no company became or ceased subsidiary, joint venture or associate company.

Performance EvaluationDuring the year the Board of Directors evaluated the performance of Board and committees and is its directors and expressed satisfaction. Independent Directors also made performance evaluation of Chairman & Executive Directors in a separate meeting.

DepositThe Company has not accepted deposits under Chapter V of the Companies Act 2013 from the public and as such no amount of principal or interest was outstanding on the date of Balance Sheet. Information under Rule 8(5) (v)(vi) of Companies (Accounts), Rules 2014 be treated Nil.

Segment ReportThe Company is engaged in Iron & Steel business, which in the context of Accounting Standard -17 issued by The Institute of Chartered Accountants of India (ICAI) as amended to date is considered only business segment and has complied the same. Reportable Segments has been duly reported in Financial Statements.

Corporate GovernanceA report on Corporate Governance and Management Discussion and Analysis in line with regulation 27 of SEBI (LODR) Regulations, 2015 , though statutorily not required, has been made a part of the Board Report to enhance self-regulation and transparency and adoption of better corporate governance practices is at Annexure H to this report.

Safety & HealthYour company is committed to actively contribute to safety and health of company’s employees by ensuring safe working conditions and safe work environment. Employees are also accountable for maintaining the laid down standards relating to occupational safety and health. Employees adopt safe techniques/technologies in manufacturing, handling and disposing of all substances including waste without creating any risk to the human, environment and equipment. Your company appropriately rewards operational staff for safety performance.

General Your Directors state that

(i) there were no complaint/case(s) filed pursuant to the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013

(ii) No significant or material orders were passed by the Regulators or Courts or Tribunals which impact the going concern status and Company’s operations in future except as reported in Auditors’ Report.

Acknowledgement Your Directors would like to express their sincere appreciation for the assistance and co-operation received from the financial institutions, banks, Government authorities, customers, vendors and members during the year under review. Your Directors also wish to place on record their deep sense of appreciation for the committed services by the Company’s executives, staff and workers.

For and on behalf of Board of Directors

Sd/- (Sanjay Singal)Place: New Delhi DIN 00006579Dated: 29.08.2016 Chairman & Managing Director

21

Annexure - A to Board’s Report

Form No. MGT-9

EXTRACT OF ANNUAL RETURN

As on the fi nancial year ended on 31.03.2016

[Pursuant to section 92(3) of the Companies Act, 2013 and rule 12(1) of the Companies (Management and Administration) Rules, 2014]

I. REGISTRATION AND OTHER DETAILS

(i) CIN U27100DL1999PLC108350

(II) Registration Date 22/02/1999

(iii) Name of Company Bhushan Power & Steel Ltd

(iv) Category/Sub-Category of the Company Company limited by shares/ Indian Non- government Company.

(v) Address of the Registered offi ce and contact details

F- Block, 1st Floor, International Trade Tower, Nehru Place, New Delhi 110 019Ph 011 30451000, Fax 011 23712737, www.bpsl.net

(iv) Whether listed company No

(vii) Name, Address and Contact details of Registrar and Transfer Agent, if any

Link Intime India Pvt Ltd, 44 community Centre 2nd Floor, Naraina Industrial Area, Phase-II, Near Batra Banquets, Naraina, New Delhi- 110 028, Contact Number: 011- 41410592, Fax - 011 41410591, Email : [email protected]. website : www.bpsl.net

II. PRINCIPAL BUSINESS ACTIVITIES OF THE COMPANY

All the business activities contributing 10 % or more of the total turnover of the company shall be stated:-

Sl. No.

Name and Description of main products / services

NIC Code of the Product / service % to total turnover of the company

1 Iron & Steel 271 100%

III. PARTICULARS OF HOLDING, SUBSIDIARY AND ASSOCIATE COMPANIES

S. N.

Name and Address of the Company CIN/GLN Holding/ Subsidiary /Associate

% of Equity Shares held

Applicable Section of

Companies Act 2013

1 M/s Nova Iron & Steel LtdVillage Dagori Tehsil Belha Bilaspur (Chhattisgarh)

L02710CT1989PLC010052 Associate 39.48 2(6)

2 M/s Ambey Steel & Power (P) LtdPriyadarshini Nagar, Behind A-44, Vypar Vihar Road, Bilaspur (Chhattisgarh)

U27104CT2004PTC016778 Associate 46.92 2(6)

3 M/s Rohne Coal Company (P) LtdThaper House , 3rd Floor Eastern Side of Central Wing, Janpath Lane, New Delhi - 110001

U10300DL2008PTC176675 Associate/ Joint Venture

24.09 2(6)

4. Bijahan Coal (P) Ltd83, Industrial Area, Phase-1, Chandigarh 160 002

U10101CH2015PTC035511 Subsidiary/ Joint Venture

95.00 2(87)

22

Bhushan AR 2017.indb 22Bhushan AR 2017.indb 22 1/24/2017 2:29:12 PM1/24/2017 2:29:12 PM

IV. SHARE HOLDING PATTERN (Equity Share Capital Breakup as percentage of Total Equity Capital)

i) Category-wise Share Holding

S. N.

Category of Shareholders No. of Equity Shares held at the beginning of the year

No. of Equity Shares held at the end of the year

% age Change

during the year

Demat Physical Total % of Total Equity Shares


A Promoters

1 Indian

a Individual /HUF 21012862 1550430 22563292 11.65 21012862 1550430 22563292 11.65 No Change

b Central Govt Nil Nil Nil Nil Nil Nil Nil Nil

c State Govt (s) Nil Nil Nil Nil Nil Nil Nil Nil

d Bodies Corporates 141053257 19374166 160427423 82.82 141053257 19374166 160427423 82.82 No Change

e Banks/FIs Nil Nil Nil Nil Nil Nil Nil Nil

f Any Other Nil Nil Nil Nil Nil Nil Nil Nil

Sub-Total (A) (1) 162066119 20924596 182990715 94.46 162066119 20924596 182990715 94.46 No Change

2 Foreign

a NRIs-Individual Nil Nil Nil Nil Nil Nil Nil Nil

b Others-Individual Nil Nil Nil Nil Nil Nil Nil Nil

c Bodies Corporates Nil Nil Nil Nil Nil Nil Nil Nil

d Banks/FIs Nil Nil Nil Nil Nil Nil Nil Nil

e Any Other Nil Nil Nil Nil Nil Nil Nil Nil

Sub-Total (A) (2) Nil Nil Nil Nil Nil Nil Nil Nil

Total Shareholding of Promoters (A) = (A)(1)+A(2)

162066119 20924596 182990715 94.46 162066119 20924596 182990715 94.46 No Change

B Public Shareholding

1 Institution

a Mutual Funds Nil Nil Nil Nil Nil Nil Nil Nil

b Banks/FIs Nil Nil Nil Nil Nil Nil Nil Nil

c Central Govt. Nil Nil Nil Nil Nil Nil Nil Nil

d State Govt Nil Nil Nil Nil Nil Nil Nil Nil

e Venture Capital Funds

Nil Nil Nil Nil Nil Nil Nil Nil

f Insurance Cos Nil Nil Nil Nil Nil Nil Nil Nil

g FIIs 10714285 Nil 10714285 5.53 10714285 Nil 10714285 5.53 No Change

h Foreign Venture Capital Funds


i Others (Specify) Nil Nil Nil Nil Nil Nil Nil Nil

Sub Total –B (1) 10714285 Nil 10714285 5.53 10714285 Nil 10714285 5.53

23


S. N.

Category of Shareholders No. of Equity Shares held at the beginning of the year

No. of Equity Shares held at the end of the year

% age Change

during the year



2 Non Institutions

a Bodies Corporate

i) Indian Nil Nil Nil Nil Nil Nil Nil Nil

ii) Overseas Nil Nil Nil Nil Nil Nil Nil Nil

b Individual

I Individual Shareholders holding nominal share capital upto ` 1 lakh

10000 NIl 10000 0.01 10000 NIl 10000 0.01 No change

ii Individual Shareholders holding nominal share capital excess of ` 1 lakh

NIl NIl NIl NIl NIl NIl NIl NIl

c Others (Specify) NIl NIl NIl NIl NIl NIl NIl NIl

Sub-Total (B) (2) 10000 NIl 10000 0.01 10000 NIl 10000 0.01 No Change

Total Public Shareholding(B) = (B)(1) + (B)(2)

10724285 Nil 10724285 5.54 10724285 Nil 10724285 5.54 No Change

C Shares held by Custodian for GDRs & ADRs


D Grand Total (A+B+C) 172790404 20924596 193715000 100 172790404 20924596 193715000 100

(ii) Shareholding of Promoters

S.N.

Shareholder’s Name Shareholding at the beginning of the year Shareholding at the end of the year % change in Equity

share holding

during the year

No. of Equity Shares

% of total Equity

Shares of the company

%of Equity Shares

Pledged / encumbered

to total Equity shares

No. of Equity Shares

% of total Equity

Shares of the company

% of Equity Shares

Pledged/ encumbered

to total Equity shares

1 Sh. Sanjay Singal 1,25,85,436 6.50 0.28 1,25,85,436 6.50 6.50 No Change

2 Smt. Aarti Singal 59,69,324 3.08 0.00 59,69,324 3.08 3.08 No Change

3 Sh. Aniket Singal 17,50,967 0.90 0.00 17,50,967 0.90 0.90 No Change

4 Sanjay Singal (HUF) 2,56,450 0.13 0.00 2,56,450 0.13 0.13 No Change

5 Smt. Priyanka Miglani 10,00,895 0.52 0.00 10,00,895 0.52 0.00 No Change

6 Smt. Radhika S Dhoot 10,00,220 0.52 0.00 10,00,220 0.52 0.00 No Change

Total (A) 2,25,63,292 11.65 0.28 2,25,63,292 11.65 10.61 No Change

7 Jasmine Steel Trading Ltd 3,97,72,500 20.53 20.08 3,97,72,500 20.53 20.53 No Change

8 Marsh Steel Trading Ltd 3,95,53,500 20.42 18.07 3,95,53,500 20.42 20.42 No Change

9 Diyajyoti Steel Ltd 4,00,32,750 20.67 12.18 4,00,32,750 20.67 20.67 No Change

10 Vision Steel Ltd 4,10,68,673 21.20 10.00 4,10,68,673 21.20 21.20 No Change

Total (B) 16,04,27,423 82.82 60.33 16,04,27,423 82.82 82.82 No Change

Grand Total 18,29,90,715 94.46 60.61 18,29,90,715 94.46 93.43 No Change

24


(iii) Change in Promoters’ Equity Shareholding (please specify, if there is no change)

S.N.

Particulars At the Beginning of The year

Date wise increase / decrease in shareholding specifying reasons for increase /decrease (e.g. allotment / transfer / bonus / sweat equity etc)

Cumulative shareholding during

the year

At the end of the year (or on the date of

separation, if separated during the year)

No of Equity Shares

%age to total Eq. Shares

Date No of Equity Shares

Reasons No of Equity Shares


No of Equity Shares


Promoter’s Shareholding

182990715 94.46 - NIL - 182990715 94.46 182990715 94.46

(iv) Shareholding Pattern of top ten Shareholders (other than Directors, Promoters and Holders of GDRs and ADRs):

S.N.

Name of the Shareholder

At the Beginning of The year

Date wise increase / decrease in shareholding specifying reasons for increase / decrease (e.g. allotment / transfer / bonus / sweat equity etc)


the year

At the end of the year (or on the date of

separation, if separated during the year)

No of Equity Shares





No of Equity Shares


1 Baring Pvt Equity Asia III (Mauritius) Holdings (3) Ltd

10714285 5.53 - Nil - Nil - 10714285 5.53

2 Ms. Anuradha 10000 0.01 - Nil - Nil - 10000 0.01

(v) Shareholding of Directors & Key Managerial Personnel

S.N.

Name of the Shareholder

At the Beginning of the year Date wise increase / decrease in shareholding specifying

reasons


the year

At the End of the year

No of Equity Shares





No of Equity

Shares

%age to total Eq.

Shares1 Sanjay Singal 12585436 6.50 - Nil - 12585436 6.50 12585436 6.502 Aarti Singal 5969324 3.08 - Nil - 5969324 3.08 5969324 3.08

V. Indebtedness

Indebtedness of the Company including interest outstanding/accrued but not due for payment

(` in Lacs)

S.N.

Particulars Secured Loans excluding deposits

Unsecured Loans

Deposits Total Indebtedness

A Indebtedness at the Beginning of the year

i Principal Amount 33,78,473.28 7,389.00 0.00 33,85,862.28

ii Interest due but not paid 35,067.30 435.79 0.00 35,503.09

iii Interest accrued but not due 35,395.94 0.00 0.00 35,395.26

Total (i+ii+iii) 34,48,935.84 7,824.79 0.00 34,56,760.63

B Change in Indebtedness during the fi nancial year

i Addition /Reduction * (Net) 3,61,816.38 -7,389.00 0.00 3,54,427.38

ii. Interest Accrued & Due 90,570.04 -435.79 0.00 90,134.25

iii. Interest Accrued but not due -29,300.63 0.00 0.00 -29,300.63

Net Change 4,23,085.79 -7,824.79 0.00 4,15,261.00

* Includes exchange fl uctuation

25


26

(` in Lacs)

S.N.

Particulars Secured Loans excluding deposits

Unsecured Loans

Deposits Total Indebtedness

C Indebtedness at the end of the fi nancial year

i Principal Amount 37,40,289.66 0.00 0.00 37,40,289.66

ii Interest due but not paid 1,25,637.34 0.00 0.00 1,25,637.34

iii Interest accrued but not due 6,094.63 0.00 0.00 6,094.63

Total (i+ii+iii) 38,72,021.63 0.00 0.00 38,72,021.63

VI. REMUNERATION OF DIRECTORS AND KEY MANAGERIAL PERSONNEL

A. Remuneration to Managing Director, Whole-time Directors and/or Manager:

(` In lacs)

S.N.

Particulars of Remuneration Sanjay Singal

Aarti Singal

R.P Goyal

R.N Yadav

Dinesh Yadav

Total

1 Gross Salary

a Salary as per provisions contained in section 17(1) of the Income-tax Act, 1961

82.51 42.00 36.72 44.01 15.00 220.24

b Value of perquisites u/s17(2) Income-tax Act,1961 Nil Nil Nil Nil Nil Nil

c Profi ts in lieu of salary under section 17(3) of income tax Act, 1961 Nil Nil Nil Nil Nil Nil

2 Stock Option Nil Nil Nil Nil Nil Nil

3 Sweat Equity Nil Nil Nil Nil Nil Nil

4 Commission Nil Nil Nil Nil Nil Nil

i As %of profi ts Nil Nil Nil Nil Nil Nil

ii Others (specify) Nil Nil Nil Nil Nil Nil

5 Total (A) 82.51 42.00 36.72 44.01 15.00 220.24

6 Ceiling as Per Act (Schedule V) 342.16 342.16 342.16 342.16 342.16

B. Remuneration to other directors (Independent /other Non Executive)

(` In Lacs)

S.N.

Name of Directors Category Fee for attending Board Meeting

Commission Others, Please specify

Total

1 R D Batra * Independent 0.68 NIL NIL 0.68

2 Anil Supanekar Independent 0.45 NIL NIL 0.45

3 Dinesh Kumar Behal Independent 0.90 NIL NIL 0.90

Total A(1) 2.03 NIL NIL 2.03

4 Dev Dutt Dass** Nominee 0.15 NIL NIL 0.15

5 TCA Ranganathan*** Nominee 0.08 NIL NIL 0.08

6 Jimmy Mehatani**** Nominee NIL NIL NIL NIL

Total (2) 0.23 NIL NIL 0.23

Total B (1+2) 2.26 NIL NIL 2.26

7 Total Managerial Remuneration 222.50 NIL NIL 222.50

8 Overall Ceiling as per the Act 1,712.30 NIL NIL 1,712.30

*Resigned w.e.f 06.01.2016

** Nomination withdrawn w.e.f. 01.01.2016

***Resigned w.e.f 31.03.2016

****Resigned w.e.f 31.05.2016


27

VI Particulars of Remuneration of Directors and Key Managerial Personnel* other than MD/Manager/ WTD

(` In lacs)

S.N.

KMP Gross Salary Stock Option/Sweat Equity/Commission

Others, if any Specify

Total

Salary as per provisions contained in section 17(1) of the Income-tax Act, 1961

Value of perquisites

u/s17(2) Income-tax Act, 1961

Profi ts in lieu of salary under

section17(3) Income-tax Act, 1961

1(a) 1(b) 1(c) 2, 3 & 4 5 6

1 CFO 33.96 Nil Nil Nil Nil 33.96

2 Company Secretary 9.14 Nil Nil Nil Nil 9.14

*One of the Whole Time Director is CEO designated

VII. PENALTIES / PUNISHMENT/ COMPOUNDING OF OFFENCES:

Type Section of the Companies Act

Brief Description

Details of Penalty/ Punishment/ Compounding fees imposed

Authority

[RD/ NCLT/ COURT]

Appeal made, if any (give Details)

A. COMPANY

Penalty NIL NIL NIL NIL NIL

Punishment NIL NIL NIL NIL NIL

Compounding NIL NIL NIL NIL NIL

B. DIRECTORS




C. OTHER OFFICERS IN DEFAULT





28

Annexure B

BHUSHAN POWER & STEEL LTD

REMUNERATION POLICY

(FOR THE DIRECTORS, KEY MANAGERIAL PERSONNAL AND OTHER EMPLOYEES)

1. Regulatory Requirement

Pursuant Section 178 and other applicable provisions of Companies Act, 2013, (Act) and rules made thereunder and Clause 49 of Listing Agreement (for listed Companies only), the Nomination and Remuneration Committee (“Committee”) shall formulate the criteria for determining qualifi cations, positive attributes and independence of a director and recommend to the Board a policy, relating to the remuneration for the directors, key managerial personnel and other employees.

The Policy has been framed by the Nomination and Remuneration Committee of the Board of Directors and based on its recommendation, approved by the Board of Directors of the Company. The policy may be reviewed by the Nomination and Remuneration Committee of the Board of Directors.

2. Purpose

Remuneration Policy (“Policy”) provides a framework for remuneration to be paid to the members of the Board of Directors (“Board”) and Key Managerial Personnel (“KMP”) of the Company (collectively referred to as “Executives”). The expression KMP shall have the same meaning as defi ned under the provisions of Act. The Policy also provides a framework for identifi cation of persons who are qualifi ed to become directors.

3. Objectives

3.1 The remuneration policy seeks to enable the company to provide a well- balanced and performance-related compensation package, taking into account shareholder interests, industry practices and relevant Indian corporate regulations.

3.2 The remuneration policy will ensure that the interests of Executives are aligned with the business strategy and risk tolerance, objectives, values and long-term interests of the company and will be consistent with the “pay-for-performance” principle.

3.3 The remuneration policy will ensure that remuneration to Executives involves a balance between fi xed pay and incentive (by way of increment/bonus/ promotion/any other form) refl ecting short and long-term performance objectives appropriate to the working of the company and its goals.

4. Principles of Remuneration and Criteria for determining Remuneration

4.1 the level and composition of remuneration is reasonable and suffi cient to attract, retain and motivate directors and KMP of the quality required to run the company successfully;

4.2 relationship of remuneration to performance is clear and meets appropriate performance benchmarks; and

4.3 remuneration to directors, key managerial personnel and senior management involves a balance between short and long term performance objectives appropriate to the working of the company and its goals.

The criteria for determining the remuneration shall be broadly guided by:

4.4 Skills,

4.5 Requisite qualifi cation, commensurate with the Job profi le,

4.6 characteristics and

4.7 experience in business, government, academics, technology, human resources, social responsibilities, fi nance, law etc. and in such other areas as may be considered relevant or desirable to conduct the Company’s business in a holistic manner and as may be decided by Committee.

4.8 Director should possess high level of personal and professional ethics, integrity and values. They should be able to balance the legitimate interest and concerns of all the Company’s stakeholders in arriving at decisions, rather than advancing the interests of a particular constituency.

4.9 Directors must be willing to devote time and energy in carrying out their duties and responsibilities effectively. They must have the aptitude to critically evaluate management working.

4.10 In case of other employees other than director, KMP, the criteria will be decided by the HR department.


29

5. Remuneration to Executives

5.1 Executives may be paid remuneration by way of fi xed salary and allowances as per Company rules subject to the provisions of companies Act, 2013.

5.2 Personal benefi ts Executives may have access to benefi ts/perquisites as per the rules and regulations of the Company. Executives may also be entitled to retirement benefi ts such as provident fund, gratuity and/or such other benefi ts as per the rules of the Company.

5.3 The Remuneration of other employee other than Executives will be decided by the HR department of the Company in accordance with the skill, qualifi cation and experience.

6. Remuneration to non-executive directors

6.1 Non-Executive may be paid remuneration by way of sitting fee and reimbursement of expenses for participation in the Board and other meetings and commission and/or such other payments as may be permitted by the law applicable to such payments. Such payments shall be subject to the provisions of Companies Act, 2013.

7. Amendments to this Policy

The Nomination and Remuneration Committee is entitled to amend this policy including any amendment or discontinuation of one or more incentive programmes introduced in accordance with this Policy.


30

Annexure C to Board’s Report

Form No. MR-3

SECRETARIAL AUDIT REPORT

FOR THE FINANCIAL YEAR ENDED MARCH 31, 2016

[Pursuant to Section 204(1) of the Companies Act, 2013 and Rule No.9 of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014]

To,The Members,Bhushan Power & Steel LimitedF- Block, 1st Floor, International Trade TowerNehru Place, New Delhi - 110 019

I have conducted the secretarial audit of the compliance of applicable statutory provisions and the adherence to good corporate practices by Bhushan Power & Steel Limited (hereinafter called “the Company”). Secretarial Audit was conducted in a manner that provided me a reasonable basis for evaluating the corporate conducts/statutory compliances and expressing my opinion thereon.

Based on my verifi cation of the Bhushan Power & Steel Limited’s books, papers, minute books, forms and returns fi led and other records maintained by the company and also the information provided by the Company, its offi cers, agents and authorized representatives during the conduct of secretarial audit, I hereby report that in my opinion, the company has, during the audit period covering the fi nancial year ended on March 31, 2016 complied with the statutory provisions listed hereunder and also that the Company has proper Board-processes and compliance-mechanism in place to the extent, in the manner and subject to the reporting made hereinafter:

I have examined the books, papers, minute books, forms and returns fi led and other records maintained by Bhushan Power & Steel Limited (“the Company”) for the fi nancial year ended on March 31, 2016 according to the provisions of:

(i) The Companies Act, 2013 (the Act) and the rules made thereunder;

(ii) The Depositories Act, 1996 and the Regulations and Bye-laws framed thereunder;

(iii) Foreign Exchange Management Act, 1999 and the rules and regulations made thereunder to the extent of Foreign Direct Investment, Overseas Direct Investment and External Commercial Borrowings;

(iv) The Securities Contracts (Regulation) Act, 1956 (‘SCRA’) and the rules made thereunder- Not Applicable being an unlisted company.

(v) The following Regulations and Guidelines prescribed under the Securities and Exchange Board of India Act, 1992 (‘SEBI Act’):

a) The Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 2011 and The Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) (Amendment) Regulations, 2013- Not Applicable being an unlisted company.

b) The erstwhile Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations, 1992 and Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations, 2015 effective from May 15, 2015- Not Applicable being an unlisted company.

c) The Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009- Not Applicable being an unlisted company.

d) The Securities and Exchange Board of India (Share Based Employee Benefi ts) Regulations 2014- Not Applicable being an Unlisted company.

e) The Securities and Exchange Board of India (Issue and Listing of Debt Securities) Regulations, 2008 and Chapter V of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 effective from December 01, 2015- Not Applicable being an unlisted company.

f) The Securities and Exchange Board of India (Registrars to an Issue and Share Transfer Agents) Regulations, 1993 regarding the Companies Act and dealing with client- Not Applicable being an Unlisted company.

g) The Securities and Exchange Board of India (Delisting of Equity Shares) Regulations, 2009 and the amendments thereof - Not Applicable being an unlisted company.

h) The Securities and Exchange Board of India (Buyback of Securities) Regulations, 1998- Not Applicable being an unlisted company.

(vi) The major provisions and requirements have also been complied with as prescribed under all applicable Labour laws viz. The Factories Act, 1948, The Payment of Wages Act, 1936, The Minimum Wages Act, 1948, The Payment of Bonus Act, 1965, The Employees State Insurance Act, 1948 etc.


31

(vii) Environment Protection Act, 1986 and other environmental laws.

(viii) Hazardous Waste (Management and Handling) Rules, 1989 and the Amendments Rules, 2003.

I have also examined compliance with the applicable clauses of the Secretarial Standards issued by The Institute of Company Secretaries of India as notifi ed by Government of India, effective from July 01, 2015.

During the period under review, the Company has complied with the applicable provisions of the Act, Rules, Regulations, Guidelines, Standards, etc. mentioned above.

Based on our examination and the information received and records maintained, I further report that:

1. The Board of Directors of the Company is duly constituted with proper balance of Executive Directors, Non-Executive Directors and Independent Directors. The changes in the composition of the Board of Directors that took place during the period under review were carried out in compliance with the provisions of the Act.

2. Adequate notice is given to all directors to schedule the Board Meetings, agenda and detailed notes on agenda were sent well in advance, and a system exists for seeking and obtaining further information and clarifi cations on the agenda items before the meeting and for meaningful participation at the meeting.

3. All decision is carried through majority while the dissenting members’ views, if any, are captured and recorded as part of the minutes.

4. The company has proper board processes.

Based on the compliance mechanism established by the company and on the basis of the compliance certifi cate(s) issued by the Company Secretary/ Offi cers and taken on record by the board of directors in their meeting(s), I am of an opinion that:

1. There are adequate systems and processes in the company commensurate with the size and operations of the company to monitor and ensure compliance with applicable laws, rules, regulations and guidelines.

2. Based on the examination of the relevant documents and records on test check basis the company has Complied with the following laws specifi cally applicable to the company:

a) The Electricity Act, 2003.

b) The Explosives Act, 1884 read with The Explosives Rules, 2008.

c) The Petroleum Act, 1934 read with The Petroleum Rules, 2002.

d) The Boilers Act, 1923.

I further report that during the audit period under review the company has fi led applications to the Central Government for waiver of recovery of excess remuneration paid, payment of minimum managerial remuneration and for re-appointment of Executive Directors of the company as per Schedule V of the Companies Act, 2013, towards which the decision of the Central Government was awaited as at the end of the audit period. The same were received after the end of the audit period. Company is in process of obtaining no objection from Public Financial Institutions/Banks for investment.

Apart from the business stated above, there were no instances of:

(i) Public / Rights / Preferential issue of shares / debentures / sweat equity.

(ii) Redemption / buy-back of securities.

(iii) Major decisions taken by the Members in pursuance to Section 180 of the Companies Act, 2013.

(iv) Merger / amalgamation / reconstruction etc.

(v) Foreign technical collaborations.FOR A. ARORA & CO

Sd/-AJAY K. ARORA

(Proprietor)Company Secretary In Practice

Place : Chandigarh FCS No. 2191Dated : 22.08.2016 C P No.: 993

This report is to be read with our letter of even date which is annexed as “Annexure A” and forms an integral part of this report.


“Annexure-A”

To,

The MembersBhushan Power & Steel LimitedF- Block, 1st Floor, International Trade TowerNehru Place, New Delhi - 110 019

My report of even date is to be read along with this letter.

1. Maintenance of secretarial records is the responsibility of the management of the company. My responsibility is to express an opinion on these secretarial records, based on my audit.

2. I have followed the audit practices and processes as were appropriate to obtain reasonable assurance about the correctness of the contents of secretarial records. The verifi cation was done on test basis to ensure that the correct facts are refl ected in secretarial records. I believe that the processes and practices, I followed, provide a reasonable basis for my opinion.

3. I have not verifi ed the correctness and appropriateness of fi nancial records and books of accounts of the company.

4. Wherever required, I have obtained the management representation about the compliance of laws, rules and regulations and happening of events etc.

5. The compliance of the provisions of corporate and other applicable laws, rules, regulations, standards is the responsibility of the management. My examination was limited to the extent of verifi cation of procedures on test basis.

The secretarial audit report is neither an assurance as to the future viability of the company nor of the effi cacy or effectiveness with which the management has conducted the affairs of the company.

FOR A. ARORA & CO

Sd/-AJAY K. ARORA

(Proprietor)Company Secretary In Practice

Place : Chandigarh FCS No. 2191Dated : 22.08.2016 C P No.: 993

32


Annexure D to the Board’s Report

INFORMATION PURSUANT TO SECTION 134 (3) (m) OF THE COMPANIES ACT, 2013 READ WITH RULE 8(3) OF COMPANIES (ACCOUNTS) RULES, 2014

(A) CONSERVATION OF ENERGY :-

(i) The steps taken or import on conservation of energy;

At Odisha Plant:

Major energy saving measures was taken up , 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 effi cient ABB make VVVF Drives. 45 Kwh per Kiln power saving had been achieved.

• All fi ve numbers Air Compressor Station were joined in common ring header 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., 3x630=1830KW/H was achieved.

AT Kolkata Plant:

• Electrical energy savings for shed lighting introduced in two numbers of sheds by installing Controlled Auto Voltage Transformers.

The above initiative has resulted into energy savings of 125300 KWH 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.

(ii) The steps taken by the company for utilising alternate source of energy;

Nil

(iii) The capital investment on energy conservation equipments;

Not segregated

(B) TECHNOLOGY ABSORPTION -

(i) The efforts made towards technology absorption; Company has adopted following technologies for its plant at Odisha:-

• Lurgi Technology for Sponge iron production.

• SSIT-CHINA for Blast furnace.

• TECHINT-ITALY technology for steel making.

• SMS- SIEMAG for six stand hot strip mill.

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

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

• CMI Belgium technology for cold rolling mills including the mills at Kolkata plant.

• 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 Fines Benefi ciation Plant.

• LINDE, Germany Technology for Oxygen Plant.

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

33


(ii) The benefi ts derived like product improvement, cost reduction product development or import substitution;

Company derived the following benefi ts from DRI plant system

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

• Utilization of char, produced as waste from DRI kilns as a fuel fl uidized bed combustion boiler.

• Utilization of middling of coal washery as a fuel in fl uidized bed combustion boiler as a fuel.

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

• Consistent good operational procedures implemented for cold rolling mills to reduce yield loss of upto 1.3% leading to cost reduction.

(iii) In case of imported technology (imported during the last three years reckoned from the beginning of the fi nancial year) -

(a) The details of technology imported; The basic engineering of CSP Plant for HR Coil has been given by SMS Siemag, Germany.Necessary modifi cations to adopt this imported technology for Indian conditions as well as for requirement of export market have been carried out indigenously successfully.

(b) The year of import; Technology from SMS Siemag, Germany imported in year 2005-06

(c) Whether the technology been fully absorbed Technology has been fully absorbed

(d) If not fully absorbed, areas where absorption has not taken place, and the reasons thereof; and

Not Applicable

(iv) The expenditure incurred on Research and development

Nil

(C) FOREIGN EXCHANGE EARNING AND OUTGO -

Foreign Exchange earned in terms of actual infl ows during the year and Foreign Exchange outgo during the year in terms of actual outfl ow

Earned: ` 1,037.47 Crores

Used: ` 2,801.29 Crores

34


Annexure E to Board’s Report

Form No. AOC-2

(Pursuant to clause (h) of sub-section (3) of Section 134 of the Act and Rule 8(2) of the Companies (Accounts) Rules, 2014)

Form for disclosure of particulars of contracts/arrangements entered into by the Company with related parties referred to in sub-section (1) of Section 188 of the Companies Act, 2013 including certain arms length transactions under third proviso thereto.

1. Details of contracts or arrangements or transactions not at arm’s length basis.

There is no such transaction.

2. Details of material contracts or arrangement or transactions at arm’s length basis:-

Names of the related party

Nature of relationship

Nature of contracts/ arrangements/ transactions

Duration of the contracts/ arrangements/ transactions

Salient Terms of the contracts or arrangements or transactions including the value (in lakhs)

Date of approval by the Board (Omnibus approval)

Amount paid as advances

(a) (b) (c) (d) (e) (g) (h)

Evergrowing Iron & Finvest Pvt Ltd

Director is a member

Sale/Purchase Services availed / rendered

For one year At market price as applicable to non related customers. ` 21,000

24th March 2015 NIL

Flawless Holdings & Industries Pvt Ltd



For one year At market price as applicable to non related customers. ` 10,100

24th March 2015 NIL

Railtrack India Pvt Ltd

Director is a Member


For one year At market price as applicable to non related customers. ` 125

24th March 2015 NIL

Kishorilal Constructions Pvt Ltd


Services availed / rendered

For one year Services are availed / rendered at market price` 2,500

24th March 2015 NIL

Oasis Steel Limited Director is a member



24th March 2015 NIL

Prudent Transport Company Ltd




24th March 2015 NIL

Titanic Steel Industries Pvt Ltd


Services availed /rendered


24th March 2015 NIL

Drester Barter Pvt Ltd



For one year Services are availed/ rendered at market price` 32

24th March 2015 NIL

Atmaram House Investment Private Ltd

Director is a member and Director

Services availed/ rendered Arrangement

For one year Services are availed/ rendered at market price` 20 `. 14,000

24th March 2015 NIL

Bhushan Information Technologies Pvt Ltd



For one year Services are availed / rendered at market price` 85

24th March 2015 NIL

35


36

Names of the related party

Nature of relationship

Nature of contracts/ arrangements/ transactions

Duration of the contracts/ arrangements/ transactions

Salient Terms of the contracts or arrangements or transactions including the value (in lakhs)

Date of approval by the Board (Omnibus approval)

Amount paid as advances

Adarsh Info Tech Pvt Ltd



For one year Services are availed / rendered at market price ` 5

24th March 2015 NIL

Nova Iron & Steel Ltd

Director is a Director

Sale/Purchae Arrangement

For One year At market price as applicable to non related customers. ` 3,700 Arrangement ` 9,000

24th March 2015 NIL

Gainda Mal Chiranji Lal Pvt Ltd




24th March 2015 NIL

Vintage Steel Private Ltd




24th March 2015 NIL

Shivalikview Steel Trading Pvt Ltd


Sales / Purchase Services availed / rendered

For one year Sales / Purchaes and Services are availed / rendered at market price` 100

24th March 2015 NIL

Sanjay Singal CMD Remuneration Five years Within permissible limits of Sch V of the Act

Nil

Aarti Singal Director (Administration)

Remuneration Three Years Within permissible limits of Sch V of the Act

Nil

R P Goyal Director (Commercial)

Remuneration Three Years Within permissible limits of Sch V of the Act

Nil

R N Yadav Director (Technical)

Remuneration Five year Within permissible limits of Sch V of the Act

Nil

Dinesh Kumar Yadav

Director (Project)

Remuneration Five year Within permissible limits of Sch V of the Act

Nil

Note . In addition to the above, also refer the related party transactions under Accounting Standard 18 at Note No 39 of the fi nancial statements.

For and on behalf of Board of Directors

Sd/- Sanjay Singal Place : New Delhi Chairman & Managing DirectorDated : 29.08.2016 DIN: 00006579


37

Annexure – F to Board’s Report

Annual Report on CSR Activities

S. N.

Particulars Remarks

1 a brief outline of the company’s CSR policy including overview of projects or programme proposed to be undertaken and a reference to web-link to CSR policy and projections or programme.

CSR policy, refl ecting ethos of the company, broad areas of CSR interest and overview of activities, proposes rural focus and woman empowerment. Detailed CSR policy can be reached at http://www.bpsl.net/policy-documents.html

Policy states the list of activities/projects undertaken/to be undertaken in future.

2 The composition of the CSR Committee Constitution of the Committee comprises One independent director and two executive directors

3 Average Net Profi t of the company for the last three fi nancial years ` 117.41 Crores

4 Prescribed CSR expenditure (2% of the amount as in item 3 above) ` 2.35 Crores. (Calculated in accordance with section 198 of the Act.)

5 Details of CSR spent for the fi nancial year

a total amount to be spent for the fi nancial year ` 2.35 Crores (Budgeted outlay for the fi nancial year)

b amount spent, if any. ` 2.38 Crores

C Manner in which the amount during the fi nancial year is detailed below

As per statement annexed at Annexure F(i)

6 In case the company has failed to spend the 2% of Average Net Profi t (INR) of last 3 fi nancial years, the company shall provide the reasons for not spending the amount in its board report

Company has spent more than 2% of budgted expenditure Not Applicable

7 A responsibility statement of the CSR Committee that the implementation and monitoring of CSR Policy, is in compliance with CSR objectives and Policy of the Company

The members of the CSR Committee declare that the CSR Policy and the programmes therein underlined have been implemented as per plan. Committee monitored the same in letter and spirit and in compliance with CSR Objectives. The expenditure spent is more than 2% of the three years average net profi t.

For Bhushan Power & Steel Ltd

Sd/- Sd/-R. P. Goyal Sanjay SingalChairman (CSR Committee) Chairman & Managing DirectorDIN: 00006595 DIN: 00006579


38

Annexure – F(i)

Project/Programme wise details of CSR Activities

S.N.

CSR project/ activity identifi ed

Sector in which the project or Programme is covered

Projects/Programmes (i) Local areas or others. (2) Specify the state and district where project / Programme undertaken

Amount outlay** (budget) project/ Programme wise(` in Crores)

Amount spent on the project or Programme Sub head (Direct expenditure on project or Programme and over heads)(` In Crores)

Cumulative spend upto the reporting period (2015-16)(` in Crores)

Amount spent Direct or through implementing agency

1 Bus stand in Sambalpur

Rural Development

Sambhalpur Distt Sambalpur

1.00 1.82 1.82 Direct

2 Provision of Potable Drinking Water

Water Jharsugda, (Distt Jharsugda) Orissa

0.10 0.10 0.10 Direct

3 Road and ponds construction

Rural Development

Jharsugda, (Distt Jharsugda) Orissa

0.30 Nil Nil Direct

4 Construction of Boundary wall around the school & Stadium Gallary

Education & Sports


0.25 Nil Nil Direct

5 Tree Plantation and maintenance of Green Belt

Environment and Ecology


0.40 0.46 0.46 Direct

6 Conducting Health camps

Preventive Healthcare


0.20 Nil Nil Direct

7 Livelihood creation for women

Women Empowerment


0.10 Nil Nil Direct

Total 2.35 2.38 2.38


39

Annexure G to Board’s Report

Form AOC-1

(Pursuant to fi rst proviso to sub-section (3) of section 129 read with rule 5 of Companies (Accounts) Rules, 2014)

Statement containing salient features of the fi nancial statement of subsidiaries/associate companies/joint ventures

Part A Subsidiaries

(Information in respect of each subsidiary to be presented with amounts in ` )

S.N. Particulars

1 No 1

2 Name of the subsidiary Bijahan Coal Pvt Ltd

3 The date since when subsidiary was acquired 29.04.2015

4 Reporting period for the subsidiary concerned, if different from the holding company’s reporting period N.A.

5 Reporting currency and Exchange rate as on the last date of the relevant Financial year in the case of foreign subsidiaries

N.A.

6 Share capital (`) 1,00,000

7 Reserves and surplus (`) (18,060)

8 Total Assets (`) 1,09,440

9 Total Liabilities (`) 27,500

10 Investments (`) Nil

11 Turnover (`) Nil

12 Profi t/(Loss) before taxation (`) (18,060)

13 Provision for taxation (`) Nil

14 Profi t/(Loss) after taxation (18,060)

15 Proposed Dividend Nil

16 Extent of shareholding (in %age) 95%

17 Names of subsidiaries which are yet to commence operations M/s Global Mines and Mineral Pte Ltd, Singapore

18 Names of subsidiaries which have been liquidated or sold during the year NIL


40

Part B Associates and Joint Ventures

Statement pursuant to Section 129 (3) of the Companies Act, 2013 related to Associate Companies and Joint Ventures

S.N.

Name of Associates / Joint Ventures

Rohne Coal Company Pvt Ltd(CIN U10300DL2008PTC176675)

Nova Iron & Steel Ltd(CIN L02710CT1989PLC010052)

Ambey Steel & Power Pvt Ltd(CIN U27104CT2004PTC016778)

1 Latest Audited Balance Sheet Date

31.03.2016 31.03.2016 31.03.2016

2 Shares of Associates / Joint Ventures held by the Company on the year end

2(a) No of Shares (a)(b)

Equity - 2,40,900Preference – 1,06,92,165

1,42,69,146 28,14,215

2(b) Amount of Investment in Associates / Joint Venture

(a)(b)

Equiy – 24,09,000Preference – 10,69,49,365

76,72,34,999 28,28,28,625

2(c) Extent of Holding % 24.09 39.48 46.92

3 Description of how there is signifi cant infl uence

Section 2(6) of Act Section 2(6) of Act Section 2(6) of Act

4 Reason why the Associate/ Joint Ventures not consolidated

N.A. N.A. N.A.

5 Net worth attributable to Shareholding as per latest audited Balance Sheet

7,28,19,818 9,40,85,947 29,89,68,571

6 Profi t/ (Loss) for the year

6(i) Considered in Consolidation (1,40,83,063) (1,75,49,189) 27,714

6(ii) Not Considered in Consolidation

Nil Nil Nil

7 Name of Associates/Joint Venture which are yet to commence operation

Yet to commence operation N.A N.A

8 Name of Associates/Joint Venture which have been liquidated or sold during the year

N.A N.A N.A

Sd/- Sd/-Sanjay Singal R. P. GoyalChairman & Managing Director Director (Commercial)DIN 00006579 DIN 00006595

Sd/- Sd/- Sd/-Arun K Agrawal Amarjeet Sharma R. K. GuptaChief Financial Offi cer Executive Director President & Company Secretary FCA 89450 FCA 86954 FCS 4054


41

Annexure H to Board’s Report

REPORT ON CORPORATE GOVERNANCE

1. Vision

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

2. Mission

To attain a level where there is no defi ned limit for growth, to promote a work climate that harness the best of human potential, encourage to compete with self, protect environment and to explore all possible means for unmatched growth.

3. Company’s Philosophy on code of Governance

Company’s guiding principles are focused to achieve highest standard of Corporate Governance. 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 stakeholder’s value by value addition and customer satisfaction.

4. Board of Directors

The Board of Directors presently consists of ten Directors, details of Executive, Non Executive and Independent Directors are as under, out of which four Directors are Non- Executive and Independent Directors.

Sr. No. Category Name of the Director

1. Executive Directors 1. Mr. Sanjay Singal

2. Mrs. Aarti Singal

3. Mr. R. P. Goyal

4. Mr. R. N. Yadav

5. Mr. Dinesh Kumar Yadav

6. Mr. Ashok Kumar Khushu (appointed w.e.f 16.07.2016)

2. Non Executive and Independent Directors 1. Mr. Anil S Supanekar

2. Mr. Dinesh Kumar Behal

3. Non Executive Nominee Director 1. Mr. Sanjiv Kumar Sachdev (Nominee IDBI Bank Ltd)

4. Non Executive Professional Director 1. Mr. H. C. Verma

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/she is a Director.

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

S. No.

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

No. of Board Meetings held

No of Board Meetings attended

Attendance at last AGM

Other Directorship

Committee Member

Committee Chairmanship

1 Mr. Sanjay Singal 6 3 Yes 7 4 4

2 Mrs.Aarti Singal 6 3 Yes 5 2 --

3. Mr Dev Dutt Das 6 2 No 1 -- --

4. Mr. Anil S. Supanekar 6 3 No -- 2 1

5 Mr. Jimmy MahtaniResigned from Directorship w.e.f 31st May 2016

6 1 No 6 -- --


S. No.

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

No. of Board Meetings held

No of Board Meetings attended

Attendance at last AGM

Other Directorship

Committee Member

Committee Chairmanship

6 Mr. R. P. Goyal 6 4 Yes 6 6 1

7 Mr. H. C. Verma 6 2 No 1 5 1

8 Mr. R. N. Yadav 6 2 No -- 3 --

9 Mr. R. D. BatraResigned w.e.f 6th January 2016

6 4 No -- 6 1

10 Mr. Dinesh Kumar Behal 6 6 Yes 1 5 1

11 Mr. Dinesh Kumar Yadav 6 2 No - 1 --

12 Mr. T.C.A. Ranganathan Appointed w.e.f 27th November 2015 and resigned w.e.f 31st March 2016

6 1 No 5 -- --

Number and the dates of Board Meetings

During the year 2015-2016 six (06) Board Meetings (including one Meeting of Independent Directors) were held on 23rd May 2015, 29th June 2015, 11th August 2015, 27th November 2015, 23rd March 2016 and one Meeting of Independent Directors on 23rd March 2016.

Notice of the Meeting is given in accordance with the provisions of Companies Act, 2013. The agenda alongwith Explanatory notes are sent to the Directors in advance.

5. Audit Committee

Consequent upon resignation of Mr. R. D. Batra from Directorship w.e.f 6th January 2016, Audit Committee of Directors presently consists three Directors as Members namely (i) Mr. Dinesh Kumar Behal (ii) Mr. Anil S. Supanekar and (iii) Mr. R. P. Goyal . Mr. Dinesh Kumar Behal is the Chairman of the Audit Committee, who is an independent Director on the Board. The present committee constitution confi rms the requirements of Section 177 of the Companies Act, 2013. Members of the Audit Committee possess accounting exposure. All the recommendation made by the Audit Committee were accepted by the Board. The terms of reference of the Committee has been amended to conform to the provisions of the Companies Act, 2013.

During the year, the Committee held fi ve meetings on 23rd May 2015, 29th June 2015, 11th August 2015, 27th November 2015 and 23rd March 2016.

6. Committee of Directors on Borrowings

Consequent upon resignation of Mr R. D. Batra from Directorship w.e.f. 6th January 2016, Committee of Board of Directors on Borrowings has been re-constituted and presently consists of four Directors namely (i) Mr. Sanjay Singal, (ii) Mrs Aarti Singal (iii) Mr. R. P. Goyal and (iv) Mr. H. C. Verma. Mr. Sanjay Singal is the Chairman of the Committee.

During the year under review, 20 Nos. of Meetings of Committee of Board of Directors on Borrowings were held during the year 2015-2016 on 17.04.2015, 28.04.2015, 13.05.2015, 18.05.2015, 29.05.2015, 20.06.2015, 26.06.2015, 01.07.2015, 06.07.2015, 29.07.2015, 18.08.2015, 31.08.2015, 04.09.2015, 18.09.2015, 12.10.2015, 07.11.2015, 21.12.2015, 31.12.2015, 08.03.2016 and 30.03.2016.

7. Share allotment & Transfer Committee

Consequent upon resignation of Mr. R. D. Batra from Directorship w.e.f 6th January 2016, Share Allotment and Transfer Committee presently consist of three members namely (i) H. C. Verma, (ii) Mr. R.N. Yadav and (iii) Mr. Dinesh Kumar Behal, Directors of the Company. Mr. H. C. Verma has been appointed as Chairman of the Committee. The Committee has been constituted inter alia for allotment, approving transfer and transmission of shares, issue of duplicate share certifi cate(s), consolidation and sub-division of share certifi cate(s), offer and issue securities and to do all related matters necessary/incidental thereto and suggest and monitor measures to improve investors’ grievances. During the year under report, no meeting of the Committee was held. Mr R.K. Gupta, President & Company Secretary is the Compliance Offi cer. The terms of reference of committee have been approved by the Board.

8. 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. Since no grievance received, hence no meeting held during the year under review.

42


9. Public Issue Committee

The Committee has been re-constituted consequent upon resignation of Mr. R. D. Batra from directorship w.e.f 6th January 2016 and authorized for taking the decisions pertaining inter-alia to public offer, issue & allotment of securities including debt instruments listed on Stock Exchanges, comprises (i) Mr. Sanjay Singal, (ii) Mr. R. P. Goyal, (iii) Mr. H. C. Verma and (iv) Mr. R. N. Yadav, Directors of the Company . During the year under report, no meeting of the Committee was held. The Board has designated Mr. R.K. Gupta, President & Company Secretary as the Compliance Offi cer.

10. Nomination & Remuneration Committee

The Nomination & Remuneration Committee has been re-constituted consequent upon resignation of Mr R. D. Batra from Directorship w.e.f 6th January 2016 and for fi xation of remuneration of the Executive Directors of the Company. Members of the Committee have recommended the remuneration policy. The terms of reference of the Committee has been amended by the Board. The Committee reviews the Company’s policy on specifi c remuneration package. Presently, the Committee comprises of (i) Mr. Anil S. Supanekar, (ii) Mr. Dinesh Kumar Behal and (iii) Mr. H. C. Verma as Members. Mr. Anil S. Supanekar is the Chairman of the Committee. One meeting of the Committee was held during the year under review.

11. Project Management Committee

The Committee has been constituted for monitoring the progress of the Project(s) 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.

12. Strategic Investment Committee

The Committee has been constituted for making strategic investments interalia for acquiring any venture having raw material or technology or otherwise for the plants of the Company. The Committee at present comprises (i) Mr. Sanjay Singal, (ii) Mr. H C Verma and (iii) Mr. R. P. Goyal as members of the Committee. Mr. Sanjay Singal is the Chairman of the Committee. Meetings are held as and when required.

13. Corporate Social Responsibility Committee (CSR Committee)

Consequent upon resignation of Mr. R. D. Batra from Directorship of the Company w.e.f 6th January 2016, The CSR Committee has been re-constituted pursuant to Section 135 of the Companies Act, 2013 (Act) to undertake the activities as specifi ed in Schedule VII of the Act and monitor the Corporate Social Responsibility Policy of the Company from time to time. The Committee at present comprises (i) Mr. R. P. Goyal (ii) Mr. Dinesh Kumar Behal and (iii) Mr. Dinesh Kumar Yadav, Directors and (iv) Mr. Ranjit Ghosh as member of the Committee. Mr. R. P. Goyal is the Chairman of the Committee. During the year under Report, three meetings of the Committee were held on 14.04.2015, 24.07.2015 and 23.03.2016. For annual report on expenditure on CSR activities refer Annexure F of the Board Report.

14. General Body Meeting:

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

Year Location Date Time

2012-13 4th Floor, Tolstoy House, 15-17, Tolstoy Marg, Connaught Place, New Delhi 30.09.2013 2.30 P.M

2013-14 4th Floor, Tolstoy House, 15-17, Tolstoy Marg, Connaught Place, New Delhi 22.09.2014 10.30 A.M

2014-15 4th Floor, Tolstoy House, 15-17, Tolstoy Marg, Connaught Place, New Delhi 28.09.2015 3.30 P.M

(b) Three (3) Extra Ordinary General Meetings of the Shareholders were held on 17th June 2015, 21st September 2015 and 1st January 2016 during the year under report.

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

15 (a) Disclosure on materially signifi cant related party transactions i.e. transactions of the Company of material nature, with its Promoters, the Directors or the Management, their subsidiaries or relatives etc. that may have potential confl ict with the interest of the Company at large.

There was no materially signifi cant transaction with related parties, which was in confl ict with duties and interest of the Company. For related party transaction, please refer to Annexure E to Board Report and Note No 39 of fi nancial statement.

(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/Companies Act, 2013 during the last three years.

None

16. Means of Communication:

Annual Report is circulated to the Shareholders.

Company has its own website. www.bpsl.net

43


17. 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) Dematerialsation 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 Company’s ISIN is INE 347F01016. Shareholders have availed the demat facility and about 89.20% total shares are in demated.

(iv) Share Certifi cates: Share certifi cates are also in physical form.

(v) Registrar for Connectivity:

Link Intime India Pvt Ltd, 44, Community Centre, 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.

(vi) Distribution of Shareholding as on 31.03.2016

For detail of distribution of shareholding, please refer to Annexure A of Board’s Report.

(vii) Location of Plants:

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

b. Village Haripur Khura, Ambala-Chandigarh Road, Dera Bassi, Distt Mohali, (Punjab)

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

d. Village Thelkoloi and Dhubenchapper Tehsil Rengali Distt Sambalpur, Odisha

(viii) Customer Service Centre

Company has following customer service centers to meet the specifi c requirements of the small/tiny/ancillary units, customers and OEMs.

a. Aurangabad, Pune, Nasik (Maharashtra) b. Pantnagar (Uttrakhand) c. Hosur (Tamil Nadu) d. Ludhiana (Punjab) e. Manesar, Faridabad (Haryana)

(ix) Sales Network

Company has about 85 sales outlets/sale centres across the country to provide services to the Customers to their satisfaction. For location of the sales net work, please visit company’s site www.bpsl.net

44


MANAGEMENT DISCUSSIONS & ANALYSIS

STEEL OVERVIEW

The year 2015-16 was remained passive for world steel. Tata Steel off loads long products business in Europe. World number one steel making Arcelor Mittal is preparing to shed about 10% of its workforce in France through sale of subsidiaries. The continued slowdown in consumption of steel in real estate sector worldwide is the main reason behind the slowdown. According to OECD Steel Committee, global crude steelmaking between 2000 to 2014 increased substantially by an unprecedented expansion in capacity by China. World crude steel production stood at 1622 million metric tonnes (MMT) during 2015, It is projected to grow further to 2361 million metric tonnes (MMT) by 2017 about 700 MMT more than in 2015. China is taking steps to address the stagnating growth in steel sector. European steel demand has been hit by economic crisis in Italy and Brexit move by Britain. The latest economic data does point to a recovery in the European economy. However there are still several sectors, like housing, where demand is still week.

India is the third largest steel producer with a total installed capacity of 110 MMT but cheap imports from China, Russia, Japan and South Korea have hurt the domestic steel industry.

STEEL INDUSTRY REVIEW IN INDIA

India has taken a tactical decision to back a recent G20 move to curb excess steel capacity and subsidies given by countries to their steel makers, although the government fears that this may keep the local industry from availing itself of state support in the form of a minimum import price. Besides imposing a minimum import price,(MIP) India is carrying out an anti-dumping probe against steel imports from some countries. Indian Government imposed MIP in the range of $341 to $752 per tonnes on 173 steel products for six months in February 2016, aimed at curbing rising imports at predatory prices by countries such as China, Japan, Korea and Russia. A sharp in the input costs has pushed steel industry into a corner. Steel Industry has been adversely impacted by increasing cost of inputs such as metcoke, Zinc and some of the micro alloys required for valued added grades. This has resulted in increased cost of production which will necessitate increase in selling price.

Ministry of steel has notifi ed 15 steel products which are critical in building the country’s infrastructure under the mandatory certifi cation mark scheme of BIS in the year 2012. Subsequently 15 more products have been notifi ed on 18.12.2015 taking it to total 30 products under mandatory quality standards. In order to achieve the growth target of production of 300 million tonnes of Steel by 2025 under National Steel Policy 2005, a concept of Special Purpose Vehicle has been proposed with respective state governments of Chhattisgarh, Odisha, Jharkhand and Karnataka. India is large producer of sponge with a large number of coal based units, located in mineral rich States of the Country. Over the years coal based route has emerged as a key contributor and accounted for 90% of total sponge iron production 2014-15.

India’s steel demand is expected to grow by 25% till 2030. Lower capacity utilization is a negative sign for global steel industry. With capacity utilization rate, competition increases between existing industry players. This put pressure on steel prices.

Steel, Power and Infrastructure industries are expected to generate more employment. Industry expecting reduction of further interest rate cut from Reserve Bank of India and steps to keep the foreign exchange fl uctuations under control to strength the Indian currency.

Increase in urban population to an estimation of 600 million by 2030 from the current level of 400 million, emergence of the rural market for steel currently consuming around 10 kg per annum by projects like Bharat Nirman, Pradhan Mantri Gram Sadak Yojana, Rajiv Gandhi Awaas Yojana among others will accelerate the growth of steel production in near future. However, based on the assessment of the current ongoing projects, both in greenfi eld and brownfi eld, 12th Five Year Plan has projected that domestic crude steel capacity in the county is likely to be 140 million tonnes by 2016-17 and has the potential to reach 149 million tonnes.

The country is expected to become the 2nd largest producer of crude steel in the world soon, provided all requirements for creation of fresh capacity are adequately met. India is also an important producer of pig iron. The private sector accounted for 93% of total production for sale of pig iron in the country.

MINES

Global economic slump has delayed the government’s plan of opening coal sector to private commercial mining. Slump in international coal prices and fi nancial stress in Steel and Aluminium sectors has forced government to resume fourth round of bidding when the market improves. Government is not sure whether coal blocks auction for commercial mining will generate adequate interest among mining companies.

Indian Bureau of Mines (IBM), which promotes scientifi c development of mineral resources, will be the nodal agency to implement the satellite monitoring measure through GPS ( Global Positioning System) enabling defection of illegal mining.

COKING COAL

Rohne Coking Coal Block- A Joint Venture

Rohne Coal Block was allotted to Rohne Coal Company Pvt. Ltd., a Joint Venture with JSW Steel Ltd and Jai Balaji Steel Ltd, was cancelled pursuant to the order of Hon’ble Supreme Court of India. The said coal block is yet to be notifi ed for E-auction. Company holds 24.09% shareholding in Joint Venture. Government of Jharkhand has allotted 3,076.39 Acres land. The joint venture company has purchased 236.060 acres of private land. Ministry of Coal, Government of India has accorded prior approval under MMDRA for mining lease over coal bearing of 778 hectares and prospecting license of over an unexplored area of 420 hectares. Company has contributed by way of capital investment in the Joint Venture.

45


46

Non-Coking Coal

Jamkhani and Bijahan Coal Blocks in the State of Odisha and Patal (East) Coal Block in the State of Jharkhand has been cancelled pursuant to the order of Hon’ble Supreme Court of India. The other two coal blocks are yet to be notifi ed for e-auction. Company as of now depends on supply from Coal India Ltd and market sources for coal.

IRON ORE

Thakurani & Rakma Marsuan Tibira in Odisha

Pursuant to the order of Hon’ble Supreme Court of India dated 14.03.2012 and 24.04.2014, State of Odisha on 05.12.2012 and 25.04.2014 recommended the Thakurani Iron ore mine and Rakma Marsuan Tibira iron ore mine in the State of Odisha. Government amended the MMDR Act. Pursuant to the MMDRA Amendment Act, 2015, approval of Central Government is no longer not required for iron ore mines. All application pending for allotment as on date of amendment act, has been cancelled except those application in which letter of intent (by whatever name called) has been made by State Govt to Centre. Company has fi led another Contempt petition in Supreme Court seeking direction to State to execute mining lease in respect of Thakurani and Rakma Marsuan Tibira in Odisha iron ore mines, since state has already recommended the said mines to Central Government pursuant to the Honble Supreme Court Orders.

Chatuburu in Jharkhand

Company has been allotted iron ore block having estimated reserves of about 35 million tons in Chatuburu block in the State of Jharkhand. Approval of Central Government has been received. However company may be required to be fi le writ petition for execution of mining lease in view of amendments in MMDR Act, 2015. However forest clearance is awaited.

POWER

India has a total installed capacity of 303 gigawatt (GW) at present , of which 211 GW is thermal and 42 GW renewal The Capacity addition plan will take total generation capacity to 564 GW proposed to be achieved through 100 GW of solar capacity, 75 GW of other renewal sources and 86 GW of coal –fi red plants and nuclear.

The targeted 1,500 million tonne of coal by 2020 will be used by the power sector. Power Ministry is currently planning to set up ultra mega power projects (UMPPs) based on imported coal. The country’s power defi cit may rise to 5.6% by fi scal 2021-22 from 2.6% of peak demand in the fi scal year 2015-16. Affordable and sustainable electricity is an essential requirements for propelling the India growth story and all potential sources of engery security. India may require 7% annual growth in electricity to sustain annual gross domestic product growth of around 8-9%. By 2034 for 300 million people, India will require an additional power supply capacity of 450 GW. The Ministry of Renewable Energy has issued fresh draft guidelines for onshore wind power projects. The country has installed 26,736 MW of wind power, the fourth highest in the world after China, US and Germany. Country has set target of 60,000 MW of wind power by 2022. Per capital consumption of electricity has increased by about 51% from 2005-06 to 2013-14 from 631 kWh to 957 kWh.

To meet power requirement of the plant of the Company at Odisha, 506 MW captive power plant has been made operational.

Opportunities

• Government put E-auction for coal blocks for speedy allocation and operation of mines.

• Government focuses on rationalizing the Acts governing mines and steel industry

• Government priorities infrastructure development with speedy growth

• Consumption pattern of steel & power is quite low, needs to increase.

• National Steel Policy, 2005 has targeted 300 MMT production by 2025 aiming at higher production viz a viz higher consumption.

• Liberalizing FDI norm and encouraging capital market

• Countries in Asia and Africa are focusing more on infrastructure development and are also witnessing strong internal demand.

• Rationalization of indirect taxation by replacing with Goods and Service Tax (GST).

• Strong domestic demand supply gap is currently met through imports.

• India is largest producer of sponge iron in the world with coal based route accounting for 89% of total production.

Threats

• Industry has not responded to e-auction of mines to the expectation of Government.

• Coal India Ltd unable to meet industry demand for coal.

• Rising cost of input coupled with scarcity in supply.

• Volatility in prices of input cost, steel prices in international scenario due to unexpected international events i.e Brexit etc.


47

• Buoyant due to strong growth in demand.

• Recessionary trend in Eurozone and debt crises of Greece may affect Indian steel industry.

COMPANY PROSPECTS

With the commissioning of Phase VI facilities, production capacity will be increased to 3.4 MTPA. Your Company will have unique integrated steel complex having total integration of primary steel 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, Wires and bright bars. For effective use of surplus intermediate products after commissioning of phase VI of the company, the balancing facilities will be commissioned which will increase the production capacity of the company to 5.5 MTPA. Balancing facilities will be commissioned after the commercial production of Phase VI and expected to be completed by 2019.

FINANCE REVIEW

During the year under report, Joint Lenders Forum (JLF) of lender banks approved Corrective Action Plan (CAP) and rectifi cation approach and refi nancing/ rescheduling of loans of the Company of ` 26,798 Crores (comprising ` 17,998 Crores re-scheduling of existing loans, Maintenance Capex of ` 5,700 Crores (includes ` 600 crores for development of mines) and conversion of interest into equity of ` 3,100 crore at premium) on the assurance of lender banks for implementation of proposed CAP and rectifi cation approach and rescheduling of above said loans. CAP has been sanctioned under 5/25 scheme in terms of Reserve Bank of India Circular No. DBR.NO.BB.BC.53/21.04.132/2014-2015 dated 15th December 2014. All lender banks agreed to take up their respective shares of loans as worked out in the CAP. Lenders have sanctioned refi nancing (5/25) of ` 5,699 Crores and implemented the same with ` 5,595 Crores. External Commercial Borrowing (ECB) loans of ` 4,349 Crores and lenders approved refi nancing of ECB to RTL of ` 4,009 Crores. Subsequently, in view of Reserve Bank of India (RBI) clarifi cation dated 24th September, 2015, company requested for refi nancing of ECB to ECB and Lenders have implemented the same for ` 2,298 Crores. In respect of EPBG facility, majority of the lenders approved EPBG facility and issued EPBG of ̀ 1,843 Crores so far. Lenders sanctioned ̀ 5,105 Crores and disbursed ̀ 4,260 Crores so far towards additional capex.

TERM LENDING

During the year under review and till the end of March’16, Company has availed Rupee Term Loan of ` 4,412.41 Crore, out of sanctioned Rupee Term Loan of ` 5,060 Crore from Indian Lenders, ECA of ` 939.42 Crore out of sanctioned ECA of ` 1,816 Crore from KFW IPEX GmbH (Germany), Deutsche Bank SPA (Italy) and Intesa Sanpaolo SPA (Hongkong)for Odisha Phase VI Project. The company has received Long Term Loan of appx. ` 4,203.37 Crore.

WORKING CAPITAL

Working Capital Facilities from consortium of banks lead by Punjab National Bank for the fi nancial year 2014- 15 has been assessed to ` 8,741 crore (Fund Based ` 4,250 Crore and Non Fund Based ` 4,491 Crore) excluding BG limit for ` 550 Crores for Coal blocks. For the fi nancial year 2015-16, the lead bank is yet to assess working capital facilities.

CREDIT RATING

The credit rating agencies Fitch Ratings India (P) Limited and Credit Analysis & Research Limited (CARE Ratings) has suspended the rating of the company

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 the Company to achieve operational effi ciency, accuracy, compliance of policies and procedures, law and regulations and close monitoring. The exercise is carried out across all locations of the Company. This ensures the control and safeguard of the Company’s assets against loss through ineffi ciency, waste, negligence or fraud, company has appointed Internal Auditor and Internal Audit functioning is regularly reviewed by the Audit Committee. A follow up audit is carried out to review the progress on recommendation, if any, made.

Cost Audit is conducted in accordance with Cost Audit Rules relating to steel plant which further enhances level of operational effi ciency and cost control.

CONTINGENT LIABILITIES

For details of contingent liabilities please refer to Note No 29 of attached fi nancial statements.

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. Company has made necessary disclosure of geographical segment.


48

INDEPENDENT AUDITORS’ REPORTTO THE MEMBERS OF BHUSHAN POWER & STEEL LIMITED1) Report on the Financial Statements

We have audited the accompanying standalone fi nancial statements of Bhushan Power & Steel Ltd. (the “Company”), which comprise the Balance Sheet as at March 31, 2016, the Statement of Profi t and Loss and Cash Flow Statement for the year then ended and a summary of signifi cant accounting policies and other explanatory information.

2) Management’s Responsibility for the Financial Statements

The Company’s Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (‘the Act’) with respect to preparation of these standalone fi nancial statements that give a true and fair view of the fi nancial position, fi nancial performance and cash fl ows of the Company in accordance with the accounting principles generally accepted in India, including the Accounting Standards specifi ed under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal fi nancial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the fi nancial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

3) Auditor’s Responsibility Our responsibility is to express an opinion on these standalone fi nancial statements based on our audit.

We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made there-under.

We conducted our audit in accordance with the Standards on Auditing specifi ed under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the fi nancial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the fi nancial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the fi nancial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal fi nancial control relevant to the Company’s preparation of the fi nancial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Company’s Directors, as well as evaluating the overall presentation of the fi nancial statements.

We believe that the audit evidence we have obtained is suffi cient and appropriate to provide a basis for our audit opinion on the standalone fi nancial statements.

4) Basis of Qualifi ed Opinion The Supreme Court of India, vide its order dated 24.09.2014, cancelled number of coal blocks allocated to various entities, which includes one

coal block allocated to the company and one of its associated company, which were under development. Subsequently, the Government of India has issued the Coal Mines (Special Provision) Act, 2015, which inter-alia deal with the payment of compensation to the effected parties in regard to investment in the coal blocks.

No effect has been taken on the value of investment made by the company in the de-allocated coal blocks amounting to ` 56,182.63 Lacs and in Equity Shares/Preference Shares/advance for share capital in the associated company (Joint Venture) amounting to ̀ 1,106.63 Lacs. whose coal blocks have been de-allocated. In the opinion of the management, the company / associated company will receive back the payments / expenditure paid / made, including borrowing cost and other incidental expenditure, relating to de-allocated coal blocks.

We are unable to comment on the impact on the value of investment made by the company and its associate in the de-allocated coal blocks and their consequent impact on the losses for the fi nancial year ended March 31, 2016. ( Refer Note 46)

Qualifi ed Opinion In our opinion, and to the best of our information and according to the explanations given to us, except for the matter described in the Basis

of Qualifi ed Opinion paragraph above, the aforesaid standalone fi nancial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at March 31, 2016 and its loss and its cash fl ows for the year ended on that date.

Report on Other Legal and Regulatory Requirements (1) As required by the ‘the Companies (Auditor’s Report) Order, 2016 issued by the Central Government of India in terms of sub-section

(11) of section 143 of the Act (hereinafter referred to as the “Order”), we give in the Annexure ‘A’ a statement on the matters specifi ed in the paragraphs 3 and 4 of the Order, to the extent applicable.

(2) As required by section 143 (3) of the Act, we report that a) We have sought and except for the possible effect of the matter described on the Basis of Qualifi ed Opinion paragraph above,

obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of our audit;


49

(b) Except for the possible effect of the matter described in the Basis of Qualifi ed Opinion paragraph above, in our opinion, proper books of account as required by law have been kept by the Company so far as appears from our examination of those books;

(c) The Balance Sheet, Statement of Profi t and Loss and Cash Flow Statement dealt with by this Report are in agreement with the books of account;

(d) Except for the possible effect of the matter described in the Basis of Qualifi ed Opinion paragraph above, in our opinion, the aforesaid standalone fi nancial statements comply with the Accounting Standards specifi ed under section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014;

(e) The matters described on the ‘Basis of Qualifi ed Opinion’ paragraphs above, in our opinion may have an adverse effect on the functioning of the Company;

(f) On the basis of written representations received from the directors as on March 31, 2016, taken on record by the Board of Directors, none of the directors is disqualifi ed as on March 31, 2016, from being appointed as a director in terms of sub-section (2) of Section 164 of the Act;

(g) The qualifi cation relating to the maintenance of accounts and other matters connected therewith are as stated on the basis of Qualifi ed Opinion paragraph above;

(h) With respect to the adequacy of the internal fi nancial controls over fi nancial reporting of the Company and the operating effectiveness of such controls, refer to our separate Report in “Annexure B”; and

(i) With respect to the other matters to be included in the Auditor’s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us : -

a) The Company has disclosed the impact of pending litigations on its fi nancial position in its fi nancial Statements Refer Note 29 to the fi nancial statements;

b) The company has made provisions, as required under applicable law or accounting standards, for material foreseeable losses, if any, on long-term contracts including derivative contracts Refer Note 42 to the fi nancial statements;

c) There has been no delay in transferring amounts, required to be transferred to the Investor Education and Protection Fund by the Company

FOR MEHRA GOEL & CO. FOR S.K. MITTAL & CO. Chartered Accountants Chartered Accountants Firm Registration No. :000517N Firm Registration No. : 001135N

Sd/- Sd/-R.K. MEHRA S.K. MITTAL

Partner Partner M.No.: 006102 M.No.: 008506

Place: New Delhi Date : 29th August, 2016


50

Annexure

ANNEXURE TO THE INDEPENDENT AUDITORS’ REPORTThe Annexure ‘A’ referred to in our Independent Auditors’ Report to the members of the Company on the fi nancial statements of Bhushan Power & Steel Ltd. for the year ended 31st March, 2016, we report that:

i) In Respect of its Fixed Assets

a) The Company has generally maintained proper records showing full particulars including quantitative details and situation of fi xed assets on the basis of available information;

b) The fi xed assets covering signifi cant value were physically verifi ed during the year by the Management at such intervals which in our opinion, provides for the physical verifi cation of all the Fixed Assets at reasonable intervals having regard to the size of the Company and nature of its business. According to the information and explanations given to us, no material discrepancies were noticed on such verifi cation;

c) In our opinion and according to the information and explanations given to us and on the basis of management certifi cate, the title deeds of immovable properties are held in the name of company.

ii) According to the information and explanations given to us, the inventory of fi nished goods, semi-fi nished goods and raw material at works were, during the year physically verifi ed by the management. In respect of stores spare parts and stock at yards in the custody of the third party and stocks in transit were verifi ed with the confi rmation or statement of account or correspondence of the third parties or certifi cation by management or reports of inspection and different audits carried out by the banks. In our opinion and according to the information and explanations given to us, the interval of such physical verifi cation is reasonable having regard to the size of the Company and nature of its business and according to the information and explanations given to us, no material discrepancies were noticed on such verifi cation.

iii) According to the information and explanations given to us, the Company has not granted secured or unsecured loan to a company, fi rm, LLP or other entity covered in the register maintained under Section 189 of the Companies Act, 2013 except loan to a associate company namely Nova Iron & steel Limited and loan to whole time directors.

a) As per information and explanations given to us the terms and conditions of the loan given are not prejudicial to the interest of the company;

b) As per information and explanations given to us:-

The loan to Nova shall be repayable as per the term emboded in the agreement. The Company has received the amount of interest accrued & due along with Principal subsequent to the date of Balance Sheet.

c) Interest from Nova Iron & Steel Limited >3 Months as on 31-03-2016 is ` 2110.82 Lacs.

The same has since been recovered.

iv) In our opinion and according to the information and explanations given to us, the Company has generally complied with the provisions of section 185 and 186 of Companies Act, 2013 with respect to the loans, investments, guarantees and security.

v) In our opinion and according to the information and explanations given to us, the Company has not accepted any deposits during the year. Hence, the directives issued by the Reserve Bank of India and the provisions of section 73 to 76 or any other relevant provisions of the Companies Act, 2013 and the rules framed there-under are not applicable to the Company.

vi) In our opinion and according to the information and explanations given to us and based on the certifi cate of the cost auditor, specifi ed accounts and records as prescribed by the Central Government in terms of sub-section (1) of section 148 of the Companies Act, 2013 have been prima facie made and maintained by the company. However, we have not, nor we are required, carried out any detailed examination of such accounts and records.

vii) (a) According to the information and explanations given to us and on the basis of our examination of the records, the Company is generally regular in depositing undisputed statutory dues with some delay including, income-tax, sales-tax, service tax, duty of customs, value added tax, cess and any other material statutory dues to the appropriate authorities to the extent these are applicable. In case of undisputed dues of provident fund and employees’ state insurance delays have been noticed up to 170 days in depositing dues with appropriate authorities.

b) According to the information and explanations given to us, no undisputed dues were in arrears as at 31st March, 2016 for a period of more than six months from the date they become payable. However, according to the information and explanations given to us, the following dues of sales tax, duty of excise, service tax, value added tax and other statutory dues have not been deposited by the Company on account of disputes:


51

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

Period to which amount related

Forum where dispute is pending

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

Demand 462.51 2003-04 & 2005-06 Sales Tax Tribunal (Cuttack)Demand 1124.01 2006-07 & 2012-13

To 2014-15Add.Commissioner Sales Tax (Sambalpur)

Demand 10.34 2014-15 Joint Commissioner DelhiDemand 19.65 2012-14 JCCT Sambalpur Demand 151.08 2006-10 Addl. Commissioner, Sales Tax

CuttackDemand 17144.45 2006-07 To 2012-13 Revision fi led before west Bengal

commission taxes appellate & revisional board.

Penalty 3.33 2015-16 Deputy Excise and Taxation Commissioner (Appeals) Patiala

Demand 78.23 2006-07 Punjab & Haryana High Court, Chandigarh

Demand 26.57 2005-06 To 2006-07& 2008-09

Joint Commissioner, Pune

Penalty 7.71 2012-13 Appellate Authority, IndoreDemand 18.11 2011-12 To 2014-15 Appellate Authority, SecundrabadDemand 7.45 2008-09 & 2015-16 D.E.T.C. (Appeals) Patiala

Orissa Entry Tax Act AdditionalDemand

15731.87 2003-04 To 2005-06 & 2012-16

High Court, Odisha

Entry Tax Demand 2149.26 2007-10 Punjab & Haryana High Court, Chandigarh

Central Excise Act,1944 Demand(including

Interest and Penalty)

43777.58 2000 To 2015 CESTAT, Kolkata

Service Tax Service Tax 35.93 2005-06 To 2009-10 CESTAT, KolkataIncome tax Demand 20102.01 1998-01, 2003-05

2006-07, 2008-11Punjab & Haryana High Court, Chandigarh

viii) Based on our audit procedure and according to the information and explanations given to us, the Company has defaulted in repayment of loans / borrowings to the fi nancial institution, bank, government as per details given here-under.

(` in Lacs)Particulars Amount of default

as on balance sheet datePeriod of default

(in Month)Principal Interest Principal Interest

A. Banks (INR Loans)Allahabad Bank - 2,129.44 - < 3 monthsAndhra Bank 1,988.00 2,196.14 > 3 months < 3 monthsBank of Baroda 2,727.27 6,250.64 > 3 months > 3 monthsBank of Baroda - 500.55 - < 3 monthsBank of India - 4,334.74 - > 3 monthsBank of Maharashtra - 2,159.33 - < 3 monthsCanara Bank 857.13 5,765.29 > 3 months > 3 monthsCentral Bank of India 4,464.29 6,422.38 > 3 months > 3 monthsCorporation Bank - 752.25 - < 3 monthsDena Bank 3,750.00 2,827.91 > 3 months > 3 monthsExim Bank - 1,217.32 - < 3 monthsIndian Bank - 2,540.84 - > 3 monthsIndian Overseas Bank 5,642.86 4,574.22 > 3 months > 3 monthsJ & K Bank 1,000.00 324.01 > 3 months < 3 monthsKarur Vaisya Bank 1,500.00 845.84 > 3 months < 3 months


(` in Lacs)Particulars Amount of default

as on balance sheet datePeriod of default

(in Month)Principal Interest Principal Interest

Life Insurance Corporation 5,053.57 13,004.55 - > 3 monthsOriental Bank of Commerce 1,701.00 7,215.21 > 3 months > 3 monthsPunjab National Bank - 5,557.94 - < 3 monthsPunjab & Sind Bank 375.86 690.59 > 3 months > 3 monthsState Bank of Travencore - 988.43 - < 3 monthsSouth Indian Bank - 937.04 - < 3 monthsState Bank of Hyderabad - 2,040.45 - < 3 monthsState Bank of Bikaner & Jaipur - 717.90 - < 3 monthsState Bank of India - 22,983.40 - > 3 monthsState Bank of Mysore - 163.70 - > 3 monthsState Bank of Mysore - 1,054.24 - < 3 monthsState Bank of Patiala - 125.79 - > 3 monthsState Bank of Patiala - 1,212.07 - < 3 monthsSyndicate Bank 637.00 4,845.13 > 3 months > 3 monthsUnion Bank - 2,380.29 - < 3 monthsUnion Bank - 717.43 - > 3 monthsUnited Bank - 823.10 - < 3 monthsVijaya Bank - 750.62 - < 3 monthsVijaya Bank 3,476.00 1,825.63 > 3 months > 3 monthsB. Banks (Foreign Currency Loans)Allahabad Bank Hongkong 8.29 95.39 < 3 months > 3 monthsAllahabad Bank Hongkong 16.58 148.00 < 3 months < 3 monthsAxis Bank - 1,045.00 - < 3 monthsBank of Baroda 1,990.01 134.41 > 3 months > 3 monthsBank of Baroda 4,145.58 379.00 > 3 months < 3 monthsBank of India 2,487.52 330.15 > 3 months > 3 monthsBank of India 13,266.26 1,212.00 > 3 months < 3 monthsCanara Bank 2,985.02 171.70 > 3 months > 3 monthsDeustche Bank - 150.19 - < 3 monthsIndian Bank 828.84 47.69 > 3 months > 3 monthsIndian Bank 8,291.16 761.00 > 3 months < 3 monthsIndian Overseas Bank 2,985.02 172.00 > 3 months > 3 monthsIndian Overseas Bank 4,145.58 380.00 > 3 months < 3 monthsKFW 2,481.00 325.19 < 3 months < 3 monthsPunjab National Bank 2,487.81 267.09 > 3 months > 3 monthsPunjab National Bank 97.42 774.95 < 3 months < 3 monthsSyndicate Bank 1,658.68 198.53 > 3 months > 3 monthsSyndicate Bank 4,145.58 373.39 > 3 months < 3 monthsUCO Bank - 240.16 - > 3 monthsUCO Bank 4,146.58 265.00 > 3 months < 3 monthsUnion Bank 16.29 190.78 < 3 months > 3 monthsUnion Bank 82.46 758.97 < 3 months < 3 monthsTotal 89,438.66 1,19,295.00

The Company is enjoying working capital facility of ` 8,78,989.00 Lacs (funded and non funded) and there is outstanding amount of ` 8,24,986.00 Lacs as at 31st March, 2016, which includes overdrawn amount of ` 1,08,001.69 Lacs. Further, interest of ` 12,013.77 Lacs is overdue thereon.

ix) In our opinion on overall basis and according to information and explanations given to us, the company has applied the term loans for the purpose they were obtained. The company has not raised money by way of initial public offer or further public offer during the year.

52


x) According to the information and explanations given to us, no material fraud by the company or on the Company by its offi cers or employees has been noticed or reported during the course of our audit.

xi) Due to the loss incurred,the company applied to the central government for approval of managerial remuneration. The approval from central government has been received during the year but furthur clarifi cation regarding leave encashment, P.F, electricity, medical reimbursement and taxable car perquisite has been sought.which in our opinion do not require approval. Hence, the payment of leave encashment,P.F, electricity, medical reimbursement and taxable car perquisite are subject to clarifi cation/approval of central government.

xii) In our opinion and according to the information and explanations given to us, the Company is not a Nidhi company. Accordingly, para (xii) of the Order is not applicable to the Company.

xiii) According to the information and explanations given to us and based on our examination of the records of the company, transactions with the related parties are in compliance with sections 177 and 188 of the Act where applicable and details of such transactions have been disclosed in the fi nancial statement as required by the applicable accounting standards.

xiv) According to the information and explanations given to us and based on our examination of the records of the company, the company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year.

xv) According to the information and explanations given to us and based on our examination of the records of the company, the company has not entered into non-cash transactions with directors or persons connected with him.

xvi) As per our information, the company is not required to be registered under Section 45-1A of the Reserve Bank of India Act, 1934.

FOR MEHRA GOEL & CO. FOR S.K. MITTAL & CO. Chartered Accountants Chartered Accountants Firm Registration No. :000517N Firm Registration No. : 001135N

Sd/- Sd/-R.K. MEHRA S.K. MITTAL

Partner Partner M.No.: 006102 M.No.: 008506

Place: New Delhi Date : 29th August, 2016

53


Annexure - B to the Independent Auditors’ Report Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (“the Act”) We have audited the internal fi nancial controls over fi nancial reporting of Bhushan Power & Steel Limited (“the Company”) as of 31 March, 2016 in conjunction with our audit of the standalone fi nancial statements of the Company for the year ended on that date.

Management’s Responsibility for Internal Financial ControlsThe Company’s management is responsible for establishing and maintaining internal fi nancial controls based on the internal control over fi nancial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India (‘ICAI’). These responsibilities include the design, implementation and maintenance of adequate internal fi nancial controls that were operating effectively for ensuring the orderly and effi cient conduct of its business, including adherence to company’s policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable fi nancial information, as required under the Companies Act, 2013.

Auditors’ Responsibility Our responsibility is to express an opinion on the Company’s internal fi nancial controls over fi nancial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls over Financial Reporting (the “Guidance Note”) and the Standards on Auditing, issued by ICAI and deemed to be prescribed under section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal fi nancial controls, both applicable to an audit of Internal Financial Controls and, both issued by the Institute of Chartered Accountants of India. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal fi nancial controls over fi nancial reporting was established and maintained and if such controls operated effectively in all material respects.Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal fi nancial controls system over fi nancial reporting and their operating effectiveness. Our audit of internal fi nancial controls over fi nancial reporting included obtaining an understanding of internal fi nancial controls over fi nancial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the fi nancial statements, whether due to fraud or error. We believe that the audit evidence we have obtained is suffi cient and appropriate to provide a basis for our audit opinion on the Company’s internal fi nancial controls system over fi nancial reporting.

Meaning of Internal Financial Controls over Financial ReportingA company’s internal fi nancial control over fi nancial reporting is a process designed to provide reasonable assurance regarding the reliability of fi nancial reporting and the preparation of fi nancial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal fi nancial control over fi nancial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly refl ect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of fi nancial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention of timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the fi nancial statements.

Inherent Limitations of Internal Financial Controls Over Financial Reporting Because of the inherent limitations of internal fi nancial controls over fi nancial reporting, including the possibility of collusion of improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal fi nancial controls over fi nancial reporting to future periods are subject to the risk that the internal fi nancial control over fi nancial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

OpinionIn our opinion, the Company has, in all material respects, an adequate internal fi nancial controls system over fi nancial reporting and such internal fi nancial controls over fi nancial reporting were operating effectively as at 31 March, 2016, based on the internal control over fi nancial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.

FOR MEHRA GOEL & CO. FOR S.K. MITTAL & CO. Chartered Accountants Chartered AccountantsFirm Registration No. :000517N Firm Registration No. : 001135N

Sd/- Sd/-R.K. MEHRA S.K. MITTAL Partner PartnerM.No.: 006102 M.No.: 008506

Place: New DelhiDate : 29th August, 2016

54


Balance Sheetas at 31st March, 2016

(` in Lacs.)

NOTE As at

31.03.2016As at

31.03.2015I. EQUITY AND LIABILITIES

(1) Shareholders’ Funds(a) Share Capital 2 23,954.00 23,954.00(b) Reserves and Surplus 3 4,17,904.04 6,61,158.37

4,41,858.04 6,85,112.37(2) Non Current Liabilities(a) Long Term Borrowings 4 29,03,084.08 27,74,944.41(b) Deferred Tax Liabilities (Net) 5 20,900.34 1,25,883.09(c) Other Long Term Liabilities 6 2,32,477.18 74,686.24(d) Long Term Provisions 7 3,550.45 3,534.85

31,60,012.05 29,79,048.59(3) Current Liabilities(a) Short Term Borrowings 8 6,65,426.38 5,44,713.36(b) Trade Payables 9 1,13,649.07 1,08,909.48(c) Other Current Liabilities 10 3,49,043.01 1,80,406.99(d) Short Term Provisions 11 359.95 534.02

11,28,478.41 8,34,563.85

TOTAL 47,30,348.50 44,98,724.81

II. ASSETS(1) Non Current Assets(a) Fixed Assets 12(i) Tangible Assets 30,89,347.37 31,05,707.48(ii) Intangible Assets 1,212.08 1,612.45(iii) Capital Work In Progress 8,31,507.33 5,35,964.84

39,22,066.78 36,43,284.77

(b) Non-Current Investment 13 12,585.14 12,318.72(c) Long-Term Loans and Advances 14 1,48,495.05 1,69,101.94(d) Other Non-Current Assets 15 16,679.21 5,309.27

1,77,759.40 1,86,729.93(2) Current Assets(a) Current Investment 16 511.66 865.09(b) Inventories 17 3,91,795.46 4,35,815.23(c) Trade Receivables 18 1,09,772.20 1,21,415.73(d) Cash & Bank Balances 19 12,390.98 12,438.18(e) Short-Term Loans & Advances 20 1,14,036.87 98,175.88(f) Other Current Assets 21 2,015.15 -

6,30,522.32 6,68,710.11

TOTAL 47,30,348.50 44,98,724.81

Signifi cant Accounting Policies 1Notes forming part of Accounts 2 to 56

As per our report of even date attached

FOR MEHRA GOEL & CO. FOR S.K. MITTAL & CO. Sd/- Sd/- Chartered Accountants Chartered Accountants SANJAY SINGAL R.P. GOYAL(Firm Registration No. : 000517N) (Firm Registration No. : 001135N) Chairman & Managing Director Director (Commercial) DIN: 00006579 DIN: 00006595

Sd/- Sd/- Sd/- Sd/-R.K. MEHRA S.K. MITTAL ARUN K. AGRAWAL AMARJEET SHARMAPartner Partner Chief Financial Offi cer Executive Director M. NO. :006102 M. NO. :008506 FCA 89450 FCA 86954

Sd/- R.K. GUPTAPlace : New Delhi President & Company SecretaryDate : 29th August, 2016 FCS 4054

55


56

Statement of Profi t and LossFor the year ended 31St March, 2016

(` in Lacs)

NOTE Year Ended 31.03.2016

Year Ended 31.03.2015

I. REVENUE FROM OPERATIONS

Sale of Products 8,38,598.60 10,00,684.64

Other Operating Income 11,719.13 18,926.50

Gross Revenue From Operations 22 8,50,317.73 10,19,611.14

Less: Excise Duty 79,138.87 91,429.21

Net Revenue From Operations 7,71,178.86 9,28,181.93

II. OTHER INCOME 23 4,324.42 5,477.73

III. TOTAL REVENUE (I + II) 7,75,503.28 9,33,659.66

IV. EXPENSES

Cost of Raw Materials Consumed 24 3,74,176.82 4,71,693.60

Purchase of Traded Stock 13,778.36 31,743.54

Change in Inventories of Finished Goods, Work-in-progress, Stock in Trade 25 35,681.85 (50,800.47)

Employee Benefi ts Expenses 26 32,542.33 35,290.65

Finance Costs 27 3,81,416.67 2,78,439.46

Depreciation and Amortization Expense 12 86,238.03 66,835.69

Other Expenses 28 1,99,906.08 2,46,474.56

Total Expenses 11,23,740.14 10,79,677.03

V. PROFIT/ (LOSS) BEFORE TAX (III-IV) (3,48,236.86) (1,46,017.38)

VI. TAX EXPENSE :

- Earlier Year 0.22 2,143.98

- Mat Credit Entitlement / Written Off - 2,350.00

0.22 4,493.98

- Deferred Tax (104,982.75) (1,04,982.53) (14,200.00) (9,706.02)

VII. PROFIT/ (LOSS) AFTER TAX (2,43,254.33) (1,36,311.36)

Earnings per share ( Nominal value of share ` 10)

Basic (125.63) (70.42)

Diluted (125.63) (70.42)

Signifi cant Accounting Policies 1Notes forming part of Accounts 2 to 56






57

Cash Flow StatementFor the year ended 31st March, 2016


FOR MEHRA GOEL & CO. FOR S.K. MITTAL & CO. Sd/- Sd/- Chartered Accountants Chartered Accountants SANJAY SINGAL R.P. GOYAL(Firm Registration No. : 000517N) (Firm Registration No. : 001135N) Chairman & Managing Director Director (Commercial)

DIN: 00006579 DIN: 00006595



(` in Lacs.)



(A) CASH FLOW FROM OPERATING ACTIVITIES:Net Profi t/(Loss) before tax and extraordinary items (348,236.86) (146,017.38)Adjustments for :Depreciation 86,238.03 66,835.69Provisions for Retirement Benefi ts (7.11) 501.97Interest & Financial Charges 3,81,416.67 2,78,439.46Interest Income (3,793.54) (4,597.02)Profi t/(Loss) on Sale/Discarded of Fixed Assets (301.05) (17.19)Profi t/(Loss) on Sale of Investment (140.10) (3.14)Diminution write back - (51.45)Diminution in Investment - 0.01Wealth Tax (48.00) 48.00Dividend Received (0.04) (0.58)Provision for Doubtful Debts & Advances 3,081.10 181.38Exchange Fluctuation 1,843.69 4,68,289.65 738.92 3,42,076.04Operating Profi t/(Loss) Before Working Capital Changes 1,20,052.79 1,96,058.66Adjustments for :Inventories 40,649.63 (116,358.13)Trade & Other Receivables (20,850.11) 80,440.27Trade Payables 10,086.61 29,886.13 38,427.97 2,510.11Cash Generated from Operations 1,49,938.92 1,98,568.77Less : Taxes Paid (Net of Refund) 467.27 14,504.20Net Cash From Operating Activities (A) 1,49,471.65 1,84,064.57

(B) CASH FLOW FROM INVESTING ACTIVITIESPurchase of Fixed Assets/Capital Expenditure (1,41,774.35) (2,23,784.74)Sale / Refund of Fixed Assets 2,792.72 (380.19)Advance Against Sale of Land 5,602.00 -Purchase/Sale of Investment 345.04 60.80Profi t/(Loss) on Sale of Investment 140.10 54.59Dividend Received 0.04 0.58Interest Income Received 3,793.54 4,597.02Net Cash Used In Investing Activities (B) (1,29,100.91) (2,19,451.93)

(C) CASH FLOW FROM FINANCING ACTIVITIESProceeds from Issue of Share Capital - 9,999.90Long-Term Borrowings (Net) 2,32,239.39 3,81,169.57Short-Term Borrowings (Net) 1,22,052.16 (56,786.05)Inter Corporate Deposits 572.53 11,137.96Interest & Financial Charges Paid (3,75,178.66) (3,15,133.20)Dividend Paid (85.88) (142.66)Dividend Tax Paid (17.48) (24.25)Net Cash Flow From / (used in) Financing Activities (C) (20,417.94) 30,221.27Net Increase/Decrease in Cash and Cash Equivalents (A+B+C) (47.20) (5,166.09)Opening Balances of Cash and Cash Equivalents 12,438.18 17,604.27Closing Balances of Cash and Cash Equivalents(including balance in dividend account)

12,390.98 12,438.18


58

NOTE-1 SIGNIFICANT ACCOUNTING POLICIES

i) BASIS OF PREPARATION OF FINANCIAL STATEMENTS

(a) Basis of Accounting:

The fi nancial statements have been prepared in accordance with Generally Accepted Accounting Principles (GAAP) in India and presented under the historical cost convention on accrual basis of accounting to comply with the Accounting Standards and with the relevant provisions of the Companies Act, 2013.

(b) Use of Estimates:

The preparation of fi nancial statements in conformity with Generally Accepted Accounting Principles (GAAP) in India requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosures of contingent liabilities on the date of fi nancial statements and reported amounts of income and expenses 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

Fixed Assets are stated at cost, net of VAT/ MODVAT/ CENVAT, less accumulated depreciation. The costs comprises 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.

Subsequent expenditure related to an item of fi xed asset is added to its book value only if it increases the future benefi ts 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.

Machinery spares that can be used only in connection with an item of fi xed asset and their use is expected to be irregular are capitalized. Replacement of such spares is charged to revenue. Capital expenditure on assets not owned by the company with exclusive right to use is refl ected in capital work in progress till the period of completion and thereafter in fi xed assets.

(b) Assets in the course of construction

Assets in the course of construction are refl ected in capital work in progress. At the point when as asset is operating at management’s intended use, the cost of construction is transferred to appropriate category of fi xed assets. Costs associated with the commissioning of an asset are capitalized where the asset is available for use but incapable of operating at normal levels until a period of commissioning has been completed.

(c) Intangible Assets

In accordance with the Accounting Standard (AS) 26 relating to intangible assets, all costs incurred on technical know-how/ license fee relating to production process are charged to revenue in the year of incurrence. Costs incurred on technical know-how / license fee relating to process design / plants / facilities are capitalized at the time of capitalization of the said plant / facility and amortized on pro-rata basis over a period of fi ve years. Computer software is capitalised on the date of installation and is amortised on pro-rata basis over a period of fi ve years.

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 higher of its net selling price and value in use. An impairment loss is recognized in the Statement of Profi t and Loss, whenever the carrying amount of an asset/cash generating unit exceeds its recoverable amount.

iv) DEPRECIATION

Depreciation on fi xed assets is provided on straight line method on the basis of the useful life prescribed in Schedule-II of Companies Act, 2013 or the economic useful life determined as per technical assessment.


59

The Economic Useful life, including auxiliary equipments/Plants, determined as per technical assessment is as below:

S.No. Description of Plant Life Span in Year1 DRI Plant 382 Sinter Plant 383 Coke Ovens 384 Blast Furnace 385 Steel Melting Shop 386 Hot Rolling Mill, WRM, CSP and Bar 387 Cold Rolling Mill, Galvanising/Galvalume and Color Coating Plant 388 Power Plant (Thermal Base) 389 Tube Mill 3510 Roads/Building 3011 RMPP 3812 Iron Ore Benefi ciary Plant 3813 Pellet Plant 3814 Oxygen Plant 3815 Rolls 316 Laboratory Machine (Non- Chemical Testing) 2017 Pollution Equipment 38

On incremental / decremental cost arising on account of translation of foreign currency liabilities for acquisition of fi xed assets, depreciation has been provided as aforesaid over the residual life of the respective plants.

Capital expenditure on assets not owned by the company with exclusive right to use is amortized over a period of fi ve years 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 more. Depreciation on fi xed assets costing upto ` 5,000/- is charged @ 100% on pro-rata basis.

v) REVENUE/EXPENDITURE RECOGNITION

Revenue is recognized when it can be reliably measured and when all signifi cant risks and rewards/ownership are transferred 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 Company’s 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” and amortized in the Statement of Profi t and Loss over the balance life of the long-term monetary item.

c) All other exchange differences are recognized as income or expenses in the Statement of Profi t and Loss in the period 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


60

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

vii) INVESTMENTS

Investments are classifi ed into current and long-term investments. Current investments except for current maturities of long term 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 is determined by using fi rst-in-fi rst-out (FIFO) method. Finished goods and work-in progress include costs of conversion and other costs incurred in bringing the inventories to their present location and condition.

Excise duty on closing stock of fi nished goods and scrap are accounted for on the basis of payments made in respect of goods 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.

Minimum Alternate Tax (MAT) paid in a year is charged to Statement of Profi t and Loss as current tax. The company recognizes MAT credit available as an asset only to the extent that there is convincing evidence that the company will pay normal income tax during the specifi ed period, i.e. the period for which MAT credit is allowed to be carried forward.

In accordance with the Accounting Standard 22-Accounting for Taxes on income, the deferred tax for timing differences between the book & tax profi t for the period is accounted for 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 other borrowing costs are expensed in the Statement of Profi t and Loss in the period they occur.

xi) MODVAT / CENVAT / VAT

Modvat/ Cenvat/ VAT claimed on capital assets is credited to assets / capital work in progress account. Modvat/ Cenvat/ VAT on purchase of raw materials and other materials are deducted from the cost of such materials.

xii) CLAIMS

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

xiii) PROPOSED DIVIDEND

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

xiv) RETIREMENT/POST RETIREMENT BENEFITS

a) Short term employee benefi ts are recognized as an expense at the undiscounted amount in the year in which related service is rendered.

b) The Company has defi ned contribution plan for post retirement benefi ts, namely Employees Provident Fund scheme administered through provident fund commissioner. The Company’s contribution is charged to revenue every year.


61

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

d) The Company has defi ned benefi ts plans namely Leave encashment/ Compensated absence and Gratuity, the liability 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”.

e) Termination benefi ts are recognized as an expense immediately.

f) Gain or Loss arising out of actuarial valuation are recognized in the Statement of Profi t and Loss as income or expense.

xv) PROVISIONS

Show cause notices issued by various government authorities are not considered as obligation. When the demand notice are raised against such show cause notice and are disputed by the Company then these are classifi ed as possible obligations.

Provisions involving substantial degree of estimation in measurement are recognised when there is a present obligation as a result of past events and it is probable that there will be an outfl ow of resources.

xvi) FINANCIAL DERIVATIVE TRANSACTION

Derivative contracts, other than forward contracts are marked to market at year end and the resultant profi t/loss is charged to Statement of Profi t and Loss except in cases where it relates to the depreciable fi xed assets in which case these are adjusted to the carrying cost of such assets.

xvii) CONTINGENT LAIBILITY & COMMITMENTS

A contingent liability is a possible obligation that arises from past events whose existence will be confi rmed by the occurrence or non occurrence of one or more uncertain future events beyond the control of the company. Where the potential liabilities have a low probability of crystallizing or are very diffi cult to quantify reliably, these are treated as contingent liabilities (Without acknowledgment as debt). Such liabilities are disclosed in the notes but are not provided for in the fi nancial statements, although there can be no assurance regarding the fi nal outcome of the legal proceedings, the company does not expect them to have a materially adverse impact on the fi nancial position or profi tability.


NOTES TO ACCOUNTS

(` in Lacs.)

AS AT 31.03.2016 AS AT

31.03.2015NOTE - 2 SHARE CAPITALAuthorised37,50,00,000 (Previous Year 37,50,00,000) Equity Shares of `10/- each. 37,500.00 37,500.0075,00,000 (Previous Year 75,00,000) Preference Shares of `100/- each. 7,500.00 7,500.00

45,000.00 45,000.00Issued, Subscribed & Paid Up.19,37,15,000 (Previous Year 19,37,15,000) Equity Shares of `10/- each Fully Paid up.

19,371.50 19,371.50

45,82,504 (Previous year 45,82,504) 2% Cumulative compulsorily Convertible Preference Shares of `100/- each Fully Paid up.

4,582.50 4,582.50

23,954.00 23,954.00

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

No. of shares % Holdingin the class

No. of shares % Holdingin the class

(a) Equity Shares of ` 10 each fully paid.Vision Steel Ltd. 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%

(b) 2% Cumulative Compulsorily Convertible Preference Shares of `100 each fully paid Vision Steel Ltd. 7,67,455 16.75% 7,67,455 16.75% Diyajyoti Steel Ltd. 7,28,355 15.89% 7,28,355 15.89% Jasmine Steel Trading Ltd. 7,34,880 16.04% 7,34,880 16.04% Marsh Steel Trading Ltd. 7,42,915 16.21% 7,42,915 16.21% Sh. Sanjay Singal. 5,14,579 11.23% 5,14,579 11.23% Sh.Sanjay Singal (HUF). 3,36,266 7.34% 3,36,266 7.34% Smt Aarti Singal. 5,00,306 10.92% 5,00,306 10.92% Sh.Aniket Singal. 2,57,748 5.62% 2,57,748 5.62%

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

Equity shares at the beginning of the year. 19,37,15,000 19,371.50 19,37,15,000 19,371.50Add: Equity share issued/cancelled during the year. - - - -Less: Equity share issued/cancelled during the year. - - - -Equity shares outstanding at the end of the year. 19,37,15,000 19,371.50 19,37,15,000 19,371.50

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

No. of shares Amount No. of shares Amount

Preference shares at the beginning of the year. 45,82,504 4,582.50 42,93,155 4,293.16Add: Fresh issue of preference shares during the year. - - 2,89,349 289.34Less: Redeemed /Cancelled during the year. - - - -Preference shares outstanding at the end of the year. 45,82,504 4,582.50 45,82,504 4,582.50

62


Notes 2.3 Terms/Rights attached to equity sharesThe 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.

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 Shares2% cumulative compulsorily convertible preference shares 7,61,867 of ` 100/- each were allotted at a premium of ` 3100/- per share during the fi nancial year 2012-13 on private/preferential placement basis.

2% cumulative compulsorily convertible preference shares 9,35,900 and 25,95,388 of ` 100/- each were allotted at a premium of ` 3100/- and ` 3400/- respectively per share during the fi nancial year 2013-14 on private/preferential placement basis.

2% cumulative compulsorily convertible preference shares 2,89,349 of ` 100/- each were allotted at a premium of ` 3356/- per share during the fi nancial year 2014-15 on private/preferential placement by conversion of loan.

All p reference shares (Including share premium received) are compulsorily 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 47 (2) of Companies Act, 2013.

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

Note 2.6 - Shares Allotted without payment being received in cash2% cumulative compulsorily convertible preference shares 2,89,349 are allotted during the Financial Year 2014-15 by Conversion of loan.

(` in Lacs.)

AS AT

31.03.2016

AS AT 31.03.2015

NOTE - 3 RESERVES AND SURPLUS

Capital Reserve 1.00 1.00

Capital Redemption Reserve 13.50 13.50

Securities Premium Account

As Per Last Balance Sheet 4,18,757.49 4,09,046.94

Add: Received during the year - 4,18,757.49 9,710.55 4,18,757.49

General Reserve

As Per Last Balance Sheet 2,00,000.00 2,00,000.00

Surplus

As Per Last Balance Sheet 42,386.38 1,78,801.10

Less: Loss for the current year (243,254.33) (136,311.36)

Less: Proposed Preference Dividend - 85.88

Less: Tax on Proposed Preference Dividend - (200,867.95) 17.48 42,386.38

4,17,904.04 6,61,158.37

63


(` in Lacs.)

AS AT

31.03.2016

AS AT 31.03.2015

NOTE - 4 LONG TERM BORROWINGSSECURED LOANS Term Loans From Banks - Rupee Loans 23,08,096.28 22,35,205.59 - Foreign Currency Loans * 5,55,587.92 5,31,251.90 - Deferred Credits from Banks 193.32 797.42UNSECURED LOANS - From Banks - 7,389.00From Others ** - Loan From Directors 19,412.50 300.50 - Loan From Related Parties 4,330.00 - - Loan From Corporate Bodies 15,464.06 -

29,03,084.08 27,74,944.41* Includes ` 5,91,623.97 Lacs (P.Y ` 5,26,240.86 Lacs)

(Including current maturity)** Interest Free

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

(i) Secured

(a) ` 28,12,240.92 Lacs (Previous year ̀ 26,61,473.84 Lacs ), secured by fi rst charge on all moveable property of the Company including plant & machinery, tools, spares, accessories, {excluding assets exclusively charged to IKB Deutsche Industrie Bank (Germany), Unicredit Bank (Austria), Bayern LB Bank (Germany), KFW IPEX GmbH (Germany) and KFW Bank GmbH (Germany), Deutsche Bank SPA (Italy) and Intesa Sanpaolo SPA (Hongkong)} created and/or to be created in favour of Company’s bankers.

These are further secured by fi rst charge on Immovable properties situated at Plot No. 22, 71, Industrial Area, Chandigarh, Derabassi on Ambala-Chandigarh Road, 186, G.T. Road Ludhiana and Jamabandis, Bangihatti Serampore (Near Kolkata), village Dhubenchhapar, Khadiapali, Thelkoloi, Jangla, Brahmmipali, Derba, Katarbaga, Tumbekela and Dharropani, Distt. Sambalpur, Odisha, two leasehold city offi ces at Chowringhee Road, Kolkata and residential premises situated at Alipore, Kolkata situated Land at Village & P.S. Potka, Juri, Khariasia, Sarmanda, Rangamatia, Baribhumari, Porabhumari, Roladih, Tangrasai, Distt East Singhbhum (Jamshedpur) (both present & future), ranking pari-passu interse between term lenders and further secured by personal guarantee of Chairman cum Managing Director and Vice Chairperson & Director (Administration).

` 1,60,929.10 Lacs (Previous year ` 1,66,172.01 Lacs) is secured by fi rst charge in favour of security agent acting for itself and other lenders in respect of Company’s immovable property situated at D-818, New Friends Colony, New Delhi.

(b) ` 1,09,586.88 Lacs (Previous year ` 1,06,479.00 Lacs) is secured by sub-servient charge on entire current assets and movable Plant & machinery (Both current & future) of the Company {excluding assets exclusively charged to IKB Deutsche Industrie Bank (Germany), Unicredit Bank (Austria), Bayern LB Bank (Germany), KFW IPEX GmbH (Germany) and KFW Bank GmbH (Germany), Deutsche Bank SPA (Italy) and Intesa Sanpaolo SPA (Hongkong)} and further secured by personal guarantee of Chairman cum Managing Director and Vice Chairperson & Director (Administration).

(c) ` 1,269.92 Lacs (Previous year ` 1,467.74 Lacs) is secured by exclusive fi rst charge in favour of security agents, acting as agent for equipment suppliers, on the specifi c equipment supplied by specifi c supplier, specifi c equipments/ movable assets erected/to be erected/ constructed/ installed at Rengali, Sambalpur, Odisha, wherein the equipments are located/ shall be located includes Hicon/H2 Bell Annealer.

(d) ` 17,835.62 Lacs (Previous year ` 18,359.45 Lacs) is secured by exclusive fi rst charge in favour of security agents, acting as agent for equipment suppliers, on the specifi c equipment supplied by specifi c supplier, specifi c equipments/ movable assets (of value approximately ` 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.

64


(e) ` 93,941.86 Lacs (Previous year ` 39,281.47 Lacs) is secured by exclusive fi rst charge in favour of security agents, acting as agent for equipment suppliers, on the specifi c equipment supplied by specifi c supplier, specifi c equipments/ movable assets erected/to be erected/ constructed/ installed at Rengali, Sambalpur, Odisha, wherein the equipments are located/ shall be located includes New Coke Oven Plant & By Product plant, New Blast Furnace, New SMS, Billet / Bloom cluster , AOD converter, Vacuum Ingot Castling, Coil to Bar & Coil Drawing Line, Centre less Grinding Line , Lime Calcination Plant, Upgradation of CSP plant,Heavy Bar Mill, CDQ Plant and New Sinter Plant.

(f) ` 781.52 Lacs (Previous year ` 1,682.42 Lacs) including current Maturity of ` 588.20 Lacs (Previous year ` 885.00 Lacs) is secured by hypothecation of specifi c assets under deferred credit payment terms and personal guarantee of Chairman cum Managing Director.

(g) ` 35,59,902.85 Lacs (Previous year Nil) loans are secured by Pledge of shares held by Promoters /Promoters group companies (93.42% of equity and 100% of preference shares )

(ii) Unsecured

` Nil (Previous year ̀ 7,389.00 Lacs) is secured by personal guarantee of Chairman cum Managing Director and Vice Chairperson & Director (Administration).

Note 4.2 Terms of repayment and conversion of Term Loan

(1) Terms of repayment (Refer Note 47) 2016-17 2017-18 2018-19 & beyond

1,71,779.20 2,12,414.47 26,51,463.05

(i) LOAN SANCTION UNDER SYNDICATION

(a) Domestic Loan of ̀ 20,008.75 Lacs (Previous year ̀ 32,210.10 Lacs) is outstanding as on 31.03.2016. Interest is linked with base rate/BPLR of the respective bank presently @ 12.20% to 13.25% p.a. is payable on said loan. Amount due is repayable in Quarterly installments.

Domestic loan converted into Foreign Currency (in USD) outstanding as on 31.03.2016 amounts to ` 67,082.41 Lacs (Previous year ` 63,299.99 Lacs) on which Interest is payable @ 6/3 months LIBOR + (425/440) basis points (presently 5.15%/5.30% approx.) p.a. Amount due is repayable in yearly / Half yearly installments.

(b) Domestic Loan of ` 1,57,057.35 Lacs (Previous year ` 1,62,518.57 Lacs) is outstanding as on 31.03.2016. Interest is linked with base rate of the respective bank and lead bank rate is presently @13.50% p.a. is payable on said loan. Amount due is repayable in quarterly installments.

Domestic loan converted into Foreign Currency ` 3,871.75 Lacs (Previous year ` 3,653.44 Lacs) is outstanding as on 31.03.2016 and Foreign Currency loan ` 58,006.41 Lacs (Previous year ` 59,147.55 Lacs) on which Interest is payable @ 6 month LIBOR + (475) basis points (presently 5.65% approx.) p.a. Amount due is repayable in Half Yearly/ yearly installments.

(c) Domestic Loan of ` 3,15,541.94 Lacs (Previous year ` 3,22,465.99 Lacs) is outstanding as on 31.03.2016. Interest is linked with base rate of the respective bank and lead bank rate is presently @ 11.50% p.a. is payable on said loan. Amount due is repayable in quarterly installments.

Foreign Currency Loan outstanding as on 31.03.2016 amounts to ` 2,71,836.92 Lacs (Previous year ` 2,56,619.00 Lacs) on which Interest is payable @ 6 month LIBOR + (390/ 440) basis points (presently 4.80% / 5.30% approx.) p.a. Amount due is repayable in Half yearly/ yearly installments.

(d) Domestic Loan of ` 4,15,656.00 Lacs (Previous year ` 3,53,221.00 Lacs) is outstanding as on 31.03.2016. Interest is linked with base rate of the respective bank and lead bank rate is presently @ 11.55% p.a. is payable on said loan. Amount due is repayable in Quarterly installments.

Domestic Loan of ̀ 25,585.00 Lacs (Previous year ̀ 22,479.00 Lacs) is outstanding as on 31.03.2016. Interest is linked with base rate of the respective bank and lead bank rate is presently @12.55% p.a. is payable on said loan. Amount due is repayable in Quarterly installments.

(e) Foreign Currency Loan of ` 1,72,430.17 Lacs (Previous year ` 1,23,274.02 Lacs) is outstanding as on 31.03.2016.

Out of this ` 1,34,622.07 Lacs (Previous year ̀ 86,158.15 Lacs) is repayable in half yearly installments carrying interest FIXED or 3/6 Months LIBOR/EURIBOR + (92.5 to 255) basis points (presently 1.25% to 4.37% approx).

` 37,808.10 Lacs (Previous year ` 37,115.87 Lacs) is repayable in half yearly/yearly installments carrying interest @ 6 months LIBOR+ (345 to 440 ) basis points( presently 4.35% to 5.30% approx)

65


66

(ii) LOAN OTHER THEN SYNDICATION

(a) Domestic loan of ` 13,98,976.36 Lacs (Previous year ` 12,93,474.92 Lacs) is outstanding as on 31.03.2016. Interest @ 11.20% to 13.50% p.a. is payable on said loan.

Domestic loan converted into foreign currency (in USD) outstanding as on 31.03.2016 amounts to ` Nil (Previous year ` 2,816.55 Lacs) on which Interest is payable @ LIBOR + (5.34 to 5.44 ) basis points p.a.

(b) Foreign Currency Loan of ` 44,820.24 Lacs (Previous year ` 47,881.35 Lacs) is outstanding as on 31.03.2016 is repayable in half yearly installments carrying interest @ 6 month LIBOR + (450)basis points (presently 5.40%) p.a..

(c) Unsecured loan amounting of ` Nil (Previous year ` 7,389.00 Lacs) sanction by Allahabad bank as a bridge loan for Phase-VI now has been adjusted against phase VI term loan.

(d) The Company also has term loan aggregating to ` 19,000.00 Lacs (Previous year ` 19,000.00 Lacs). Vijaya Bank of ` 4,000.00 Lacs (Previous year ` 4,000.00 Lacs) @13.85%) and Andhra Bank of ` 15,000.00 Lacs (Previous year ̀ 15,000.00 Lacs) @13.85%) p.a. with monthly rest is utilized for Phase-IV of the Odisha project. Amount due is repayable in Quarterly installments..

The lenders were having option to convert into equity shares in case the company comes out with IPO within 3 years from the date of fi rst disbursement at lower price of band in case of book building or at the issue price in case of fi xed price issue, however the option of conversion has expired during previous year.

(2) Terms of Conversion of Term Loan into Equity Shares

Domestic Loan of ` 65,001.87 Lacs (Previous year ` 65,000.00 Lacs) is outstanding as on 31.03.2016 Interest is linked with base rate of the respective bank and presently lead bank rate payable on said loan is 12.50% p.a. .

The said loan is utilized for Phase-V of the Odisha project with option to convert into equity shares in case the company comes out with IPO within 5 years from the date of fi rst disbursement at a mutually pre-agreed discount to IPO price.

Repayment default on Long Term Borrowings

Principal Amount

Interest Amount

SECUREDTerm Loan1. From Banks

- Foreign Currency Loans 56,265.68 8,420.59- Rupee Loans 33,172.98 1,10,874.41

Total 89,438.66 1,19,295.00

(` in Lacs.)

AS AT

31.03.2016

AS AT 31.03.2015

NOTE - 5 DEFERRED TAX LIABILITIESDeferred Tax Liability on Account of :Related To Fixed Assets 1,44,164.41 1,56,231.89Deferred Tax Assets on Account of :Loss Carry Forward 1,18,444.46 26,440.52Provision For Doubtful Debts 1,821.28 754.97Disallowances Under The Income Tax Act,1961 2,998.33 1,23,264.07 3,153.31 30,348.80Net Deferred Tax Liability 20,900.34 1,25,883.09

NOTE - 6 OTHER LONG TERM LIABILITIESSecurity Deposits 5,012.50 23,267.99Advance from a customer secured by (EPBG) 1,76,437.80 -Advances against Sale of Land/Building 5,602.00 -Liability For Capital Goods/Expenditures 45,424.88 51,418.25

2,32,477.18 74,686.24


67

(` in Lacs.)

AS AT

31.03.2016

AS AT 31.03.2015

NOTE - 7 LONG TERM PROVISIONSProvisions for Employee Benefi ts

- Provision for Gratuity 1,853.15 1,947.39

- Leave Encashment 1,697.30 1,587.46

3,550.45 3,534.85

NOTE - 8 SHORT TERM BORROWINGS

SECURED LOANS FROM BANKS

Working Capital Loans

- Rupee Loans 4,71,122.77 3,86,100.83

- Foreign Currency Loans 18,568.52 22,138.64

Term Loans

- Rupee Loans 35,336.36 3,399.14

- Loan against FDR 345.83 306.69

From Banks Out Side India

- Buyer Credit in Foreign Currency (Operation) 94,814.04 84,998.70

- Buyer Credit in Foreign Currency (Project) 45,238.86 46,713.83

UNSECURED LOANS

From Others

- Loan From Related Party - 1,055.53

6,65,426.38 5,44,713.36

NOTE 8.1 Security Detail of Short Term Borrowings

Secured

(a) ` 4,89,691.29 Lacs (Previous year ` 4,08,239.47 Lacs) secured by fi rst charge on current assets (both present and future) by way of hypothecation of stocks, book–debts, 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) and KFW Bank GmbH (Germany), Deutsche Bank SPA (Italy) and Intesa Sanpaolo SPA (Hongkong)} and further secured by fi rst charge created and/or to be created on immovable properties, building, structure and all plant & machinery fastened to earth at P.S. Potka, Juri, Khariasia, Sarmanda, Rangamatia, Baribhumari, Porabhumari, Roladih, Tangrasai, Distt East Singhbhum (Jamshedpur).

Loans are further secured by second charge created and/or to be created on all movable assets forming part of fi xed/block of assets (both present & future) and on immovable properties, building, structure and all plant & machinery fastened to earth at Plot No. 22, 71, Industrial Area, Chandigarh,Derabassi on Ambala-Chandigarh Road,186,G.T. Road, Ludhiana, Bangihatti Serampore (Near Kolkata),village Dhubenchhapar, Khadiapali,Thelkoloi,Jangla, Brahmmipali, Derba, Katarbaga,Tumbekela and Dharropani,Distt Sambalpur Odisha, and two city offi ces situated at Chowringhee Road, Kolkata and residential premises situated at Alipore, Kolkata, situated Land at Village. The security ranks pari-passu inter-se between consortium member banks. Loans are further secured by personal guarantee of Chairman cum Managing Director and Vice Chairperson & Director (Administration).

(b) ` 35,336.36 Lacs (Previous Year ` 3,399.14 Lacs) is secured by First charge on current assets of the company.

(c) Loan against FDR is secured by pledge and lien of FDRs of ` 540.10 Lacs with the Bank.)

(d) ` 1,40,052.90 Lacs (Previous year ` 1,36,428.03 Lacs) is secured by personal guarantee of Chairman cum Managing Director and Vice Chairperson cum Director Administration.


68

(` in Lacs.)

AS AT

31.03.2016

AS AT 31.03.2015

NOTE - 9 TRADE PAYABLEOutstanding dues to Micro & Small Enterprises 219.31 84.13Outstanding dues to other than Micro & Small Enterprises 1,13,429.76 1,08,825.35

1,13,649.07 1,08,909.48

NOTE - 10 OTHER CURRENT LIABILITIESCurrent Maturities of Long Term Debts 1,71,779.20 66,204.51Interest Accrued but not due on borrowings 6,094.63 35,395.26Interest Accrued & Due on borrowings 1,25,637.34 35,503.09Advances from Customers 4,236.91 6,997.20Advances from Customers (EPBG) 8,688.03 -Accrued Expenses 5,861.17 6,526.75Security Deposits 144.23 145.17Due to Directors 9.15 13.21Statutory Dues 18,560.56 23,708.83Other Payable * 8,031.79 5,912.97

3,49,043.01 1,80,406.99*(Includes amount payable to employees)

NOTE -11 SHORT TERM PROVISIONSProvision for Employee Benefi tsProvision for Gratuity 213.14 227.76Provision for Leave Encashment 146.81 154.90Other ProvisionsProvision for Proposed Preference Dividend - 85.88Provision for Tax on Proposed Preference Dividend - 17.48Provision for Wealth Tax (Net) - 48.00

359.95 534.02


69

NOTE - 12 FIXED ASSETS

(` in Lacs.)

DESCRIPTION OF

FIXED ASSETS

GROSS BLOCK DEPRECIATION NET BLOCK

As At

01.04.2015

Additions

During the

Year

Adjustment

During the

Year

Sale/Discarded

During the

Year

As At

31.03.2016

As At

01.04.2015

For the

Year

Adjustment

during the

Year

Written Back

during the

Year

As at

31.03.2016

As At

31.03.2016

As At

31.03.2015

Tangible Assets

Freehold Land 20,279.57 70.44 - 37.41 20,312.60 - - - - - 20,312.60 20,279.57

Leasehold Land 41,362.45 32.70 - - 41,395.15 138.90 56.99 - - 195.89 41,199.26 41,223.55

Building 8,68,832.14 5,016.23 9,584.82 118.17 8,83,315.02 57,894.96 24,414.35 - 112.26 82,197.05 8,01,117.97 8,10,937.18

Railway Siding 2,680.66 - - - 2,680.66 1,193.09 202.27 - - 1,395.36 1,285.30 1,487.57

Plant & Equipment 25,82,675.53 36,339.93 21,419.34 10,902.91 26,29,531.89 3,54,146.45 61,204.21 - 8,456.60 4,06,894.06 22,22,637.83 22,28,529.08

Furniture & Fixture 2,095.22 193.30 - - 2,288.52 1,060.61 251.10 - - 1,311.71 976.81 1,034.61

Offi ce Equipment 980.90 57.11 - 0.32 1,037.69 519.82 124.56 - 0.23 644.15 393.54 461.08

Vehicles 4,472.70 105.84 - 26.84 4,551.70 2,847.63 371.22 - 24.89 3,193.96 1,357.74 1,625.07

Assets not owned by the Company

7,087.91 - - - 7,087.91 6,958.14 63.44 - - 7,021.58 66.33 129.77

Sub-total (A) 35,30,467.08 41,815.55 31,004.16 11,085.65 35,92,201.14 4,24,759.60 86,688.14 - 8,593.98 5,02,853.76 30,89,347.37 31,05,707.48

Intangible Assets

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

Computer Softwares 2,071.75 4.25 - - 2,076.00 459.29 404.63 - - 863.92 1,212.08 1,612.45

Sub-total (B) 2,199.39 4.25 - - 2,203.64 586.93 404.63 - - 991.56 1,212.08 1,612.45

Total(A+B) 35,32,666.47 41,819.80 31,004.16 11,085.65 35,94,404.78 4,25,346.53 87,092.77 - 8,593.98 5,03,845.32 30,90,559.45 31,07,319.93

Previous Year (As At 31.03.2015)

26,59,835.71 5,84,116.71 2,90,512.66 1,798.61 35,32,666.47 3,59,864.83 67,677.70 1,239.66 956.34 4,25,346.53

Capital Work-in-Progress 8,31,507.33 5,35,964.84

Total 39,22,066.78 36,43,284.77

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 ` 854.74 Lacs (Previous year ` 842.01 Lacs) charged to Capital Work in Progress.

3. Adjustment during the year includes addition of ` 31,004.16 Lacs (Previous Year ` 2,91,752.32 Lacs) on account of borrowing cost/exchange fl uctuation and deduction for Depreciation Capitalised ` Nil (Previous Year ` 1,239.66 Lacs)


70

(` in Lacs) AS AT

31.03.2016AS AT

31.03.2015

NOTE -13 NON-CURRENT INVESTMENT

QUOTED

Long Term, Trade (Valued At Cost)

Investment in Equity Shares (Fully paid up)

- ASSOCIATES

Nova Iron & Steel Ltd

1,42,69,146 (Previous Year 1,42,69,146 ) Equity Shares of ` 10/-each 7,672.35 7,672.35

- OTHERS

Orissa Sponge Iron & Steel Ltd

840 (Previous Year 840 ) Equity Shares of ` 10/-each 7.80 7.80

Aggregate Value of Quoted Investment (A) 7,680.15 7,680.15

UNQUOTEDLong Term, Trade (Valued At Cost)Investment in Equity Shares (Fully paid up)SUBSIDIARYBijahan Coal Pvt. Ltd9,500 ( Previous Year Nil ) Equity Shares of `10/-each 0.95 -

Preference Shares of `10/-each

JOINT VENTURERohne Coal Company Pvt. Limited2,40,900 (Previous Year 2,40,900 ) Equity Shares of `10/-each fully paid up 24.09 24.09

OTHERSSkap Electronics Pvt. Ltd.

980 ( Previous Year 980 ) Equity Shares of `100/-each 982.45 982.45

ASSOCIATESAmbey Steel & Power Pvt Ltd28,14,215 (Previous Year 28,14,215 ) Equity Shares of ` 100/-each 2,828.29 2,828.29

Investment in Preference Shares (Fully paid up)JOINT VENTURERohne Coal Company Pvt. Limited82,53,141 (Previous Year 80,37,347 ) 1% Non Cumulative Redeemable 825.31 803.73

Preference Shares of `10/-each

Rohne Coal Company Pvt. Limited

24,39,024 (Previous Year NIL ) 1% Non Cumulative Redeemable

Preference Shares of Series A `10/-each 243.90 -

Aggregate Value of Unquoted Investment (B) 4,904.99 4,638.57

(A+B) 12,585.14 12,318.72

Aggregate Value of Quoted Investment 7,680.15 7,680.15

Aggregate Value of Unquoted Investment 4,904.99 4,638.57

Market Value of Quoted Investment 969.56 1,137.08


7171

(` in Lacs) AS AT

31.03.2016AS AT

31.03.2015NOTE - 14 LONG TERM LOANS AND ADVANCES(Unsecured, Considered good)Capital Advances 39,100.28 60,068.26Security Deposits (Refer Note .54) 21,892.05 21,758.52Loans and Advances to Employees (Refer Note .55) 697.18 678.64Advance For Long Term Investment (Related Party) 13.33 271.36Advance Income Tax 6,202.21 5,735.16MAT Recoverable 80,590.00 80,590.00

1,48,495.05 1,69,101.94

NOTE - 15 OTHER NON CURRENT ASSETS(Unsecured,Considered Good Unless Stated Otherwise)(A) Long Term Trade ReceivablesConsidered Good 11,718.80 1,024.49Doubtful 4,881.09 3,307.27

16,599.89 4,331.76Less:- Provision For Doubtful Debts 4,881.09 2,181.50

11,718.80 2,150.26(B) Cash & Bank Balance Non Current Fixed Deposit (Ref. Note.19 ) 4,960.41 3,159.01

16,679.21 5,309.27

NOTE - 16 CURRENT INVESTMENTUNQUOTEDNon- Trade (Valued at Lower of Cost and Fair Value)Canara Robeco Gold Saving Fund-dividendNil (Previous Year 1,181.7160) Units of ` 10/- each - 0.10Canara Robeco Medium Term OpportunitiesNil (Previous Year 47,622.676) Units of ` 10/- each - 5.00Canara Robeco Capital Protection Oriented Fund (Series 2)5,50,000 (Previous Year 5,50,000) Units of ` 10/- each 55.00 55.00Canara Robeco Capital Project Oriented (Series 3)1,39,630 (Previous Year 1,39,630 )Units of ` 10/- each 13.96 13.96Canara Robeco Capital Protech Oriented Fund (Series 4)1,38,076 (Previous Year 1,38,076 )Units of ` 10/- each 13.81 13.81Canara Robeco Capital Protection Oriented Fund (Series 6)2,56,048 (Previous Year Nil )Units of ` 10/- each 25.60 -Canara Robeco Emerging Equities Growth7,233.9780 (Previous Year 2,054.6540 )Units of ` 10/- each 4.19 1.00Canara Robeco Equity Div Regular Growth13,798.7860 (Previous Year 8,993.768 )Units of ` 10/- each 13.08 8.72CP1G Union KBC Capital Protection Oriented FundNil (Previous Year 19,99,990 )Units of ` 10/- each - 200.00CP2G Union KBC Capital Protection Oriented FundNil (Previous Year 20,00,000 )Units of ` 10/- each - 200.00CP5G Union KBC Capital Protection Oriented Fund10,00,000(Previous Year 10,00,000 )Units of ` 10/- each 100.00 100.00Canara Robeco Tresure Advantage Fund-DividendNil (Previous Year 120.449) Units of ` 1,000/- each - 1.49

71


72

(` in Lacs) AS AT

31.03.2016AS AT

31.03.2015Canara Robeco Monthly Income PlanNil (Previous Year 40,828.9470 )Units of ` 10/- each - 5.51PNB- Principal Income Fund Long Term Plan4,93,710.0710 (Previous Year 4,93,710.0710 )Units of ` 10/- each 100.00 100.00DSP Blackrock MIP Fund Growth Nil (Previous Year 2,36,603.5090 )Units of ` 10/- each - 50.00DSP Blackrock MIP Fund Growth 3,00,896.2855 (Previous Year Nil )Units of ` 10/- each 67.79 -UTI Nifty Index Fund-GrowthNil (Previous Year 93,381.7120) )Units of ` 100/- each - 42.00UTI Income Opportunites Fund Growth Plan5,45,112.3107 (Previous Year Nil) )Units of ` 10/- each 68.23 -UTI -CAPITAL PROTECH ORIENTED5,00,000 (Previous Year 5,00,000) )Units of ` 100/- each 50.00 50.00UTI -Unit Scheme for Charitable & Religior Trust Nil (Previous Year 7,530.480) )Units of ` 100/- each - 18.50

511.66 865.09

NOTE - 17 INVENTORIESRaw Material 2,51,805.31 2,51,791.93Raw Material-in-Transit 1,375.33 9,801.19Work-in-Progress 2,810.42 4,637.70Finished Goods 81,964.63 1,12,762.46Finished Goods in Transit 3,500.44 7,223.96Stock-in-Trade 16,327.17 15,763.60Stores & Spares 32,860.84 32,786.28Others (Scrap) 1,151.32 1,048.11

3,91,795.46 4,35,815.23

NOTE - 18 TRADE RECEIVABLE(Unsecured, Considered Good)Outstanding for a period exceeding six months from due date 3,566.77 1,578.84Others 1,06,205.43 1,19,836.89

1,09,772.20 1,21,415.73

NOTE -19 CASH & BANK BALANCE(A) Cash and Cash EquivalentsCash on Hand 92.01 181.27Balances with Scheduled Banks - In Current Account 9,256.87 8,089.49 - Deposits with original maturity of less than three months * 268.19 5.11

(B) Other Bank Balances Fixed Deposits Having Maturity Period: - For More Than 12 Months * 5,000.87 3,212.07 - 3 to 12 Months * 2,733.45 4,109.25

17,351.39 15,597.19Less Non Current Fixed Deposit 4,920.89 3,159.01Less Non Current Fixed Deposit (Security) 39.52 -

12,390.98 12,438.18*(Including interest accrued but not due)Under Bank Lien ` 7,828.01 Lacs (P.Y. ` 7,277.18 Lacs)Pledge with Govt authorities ` 174.50 Lacs (P.Y. ` 49.25 Lacs)


(` in Lacs) AS AT

31.03.2016AS AT

31.03.2015

NOTE -20 SHORT TERM LOANS & ADVANCES(Unsecured, Considered Good)Advances recoverable in cash or in kind or for value to be received 75,335.82 53,910.64Loans and Advances To related parties * 17,096.65 17,164.30To Employees 165.01 291.50To Corporate Bodies & Others 5,370.21 5,942.74Balance with Excise Authorities 0.89 0.21Balance of Modvat / Cenvat / Service Tax/ Vat 16,449.79 20,866.49

1,14,418.37 98,175.88Less: Provision for Doubtful Advances 381.50 -

1,14,036.87 98,175.88*Advance to Nova Iron & Steel Ltd.(Associate Company) including interest due thereon

NOTE -21 OTHER CURRENT ASSETSFixed Assets held for Disposal 2,015.15 -

2,015.15 -

(` in Lacs.) Year Ended

31.03.2016 Year Ended 31.03.2015

NOTE -22 REVENUE FROM OPERATIONSSales 7,28,099.53 8,42,050.78Export Sales 1,10,499.07 1,58,633.86Sales including Excise Duty 8,38,598.60 10,00,684.64

Other Operating RevenueScrap Sales 10,355.46 15,163.08Export Sales (Scrap) 166.29 377.54Export Incentives 1,197.38 3,385.88

11,719.13 18,926.50Gross Revenue from Operations 8,50,317.73 10,19,611.14

NOTE -23 OTHER INCOMEMisc. Income 89.69 102.12Profi t on Sale of Short Term Investment 140.10 3.14Profi t on Sale/Discarded of Fixed Assets (Net) 301.05 17.19Diminution on current investment written back - 51.45Interest received * 3,793.54 4,597.02Exchange Fluctuation - 706.23Dividend Received on Current Investment 0.04 0.58

4,324.42 5,477.73*Tax Deducted at Source ` 360.34 Lacs (Previous year ` 401.59 Lacs)

73



31.03.2016 Year Ended 31.03.2015

NOTE -24 COST OF RAW MATERIAL CONSUMED Raw Material Consumed 3,74,493.95 4,72,094.66

Less :

Cost of Material Transferred to Projects Commissioned /Under Commissioning /Trial Run 317.13 401.06

3,74,176.82 4,71,693.60

NOTE -25 CHANGE IN INVENTORIES OF FINISHED GOODS, WORK-IN-PROGRESS & STOCK-IN-TRADE

Opening StockFinished Goods 1,19,986.42 84,302.91

Stock-in-Trade 15,763.60 1,269.86

Work-In-Progress 4,637.70 4,256.19

Others 1,048.11 806.391,41,435.83 90,635.35

Closing StockFinished Goods 85,465.07 1,19,986.42

Stock-in-Trade 16,327.17 15,763.60

Work-In-Progress 2,810.42 4,637.70

Others 1,151.32 1,048.11

1,05,753.98 1,41,435.82

Net 35,681.85 (50,800.47)

NOTE -26 EMPLOYEES BENEFITS EXPENSESSalary, Wages & Bonus 39,425.92 43,505.41

Contribution to PF & Other Funds 935.22 787.99

Staff Benefi ts 502.92 529.95

40,864.06 44,823.35

Less :

-Transferred to Projects Commissioned /Under Commissioning /Trial Run 8,321.73 9,532.70

32,542.33 35,290.65

NOTE -27 FINANCE COSTSInterest Expenses 4,18,009.44 3,61,430.04

Other Borrowing Costs 18,002.82 9,869.13

4,36,012.26 3,71,299.17

Less :

-Transferred to Projects Commissioned /Under Commissioning /Trial Run 54,595.59 92,859.71

3,81,416.67 2,78,439.46

74



31.03.2016 Year Ended 31.03.2015

NOTE - 28 OTHER EXPENSESStores Consumed 33,971.02 46,103.00Power & Fuel 1,00,225.34 1,36,991.81Excise Duty Provided on Stock (Net) (3,370.14) 1,245.81Rates and Taxes 837.73 1,076.48Legal & Professional Charges 1,701.72 3,418.24Insurance 587.86 726.02Auditor’s Remuneration (Refer Note-34) 188.55 148.48Travelling & Conveyance 2,757.16 2,501.68Advertisement & Sales Promotion 171.83 121.59Postage, Telegrams & Telephone 443.39 475.80Utility & Facility 527.68 573.00Rebate and Discount 7,399.34 7,796.34Selling and Distribution Expenses 48,042.45 42,636.67C.S.R. Expenditure 238.00 1,400.98R.R. Expenditure 478.62 106.47Selling Commission 394.74 664.30Repair and Maintenance :-- Building 186.04 262.01- Machinery 2,254.13 4,188.44- Vehicle 833.38 1,249.47Lease Rent 142.38 120.40Other Administrative Expenses 472.03 317.49Exchange Fluctuation (Net) 997.42 -Bad Debts 464.78 -Provision for Doubtful Debts 3,081.10 181.38Balances Written Off - 39.67Diminution in Investment - 0.01

2,03,026.55 2,52,345.54Less : - -Transferred to Projects Commissioned /Under Commissioning /Trial Run 3,120.47 5,870.98

1,99,906.08 2,46,474.56

75


(` in Lacs)NOTE -29 CONTINGENT LIABILITIES & COMMITMENTS 2015-2016 2014-2015A Contingent Liability GROSS NET GROSS NET

Outstanding guarantees furnished to Banks & Financial Institutions-For Rohne Coal (Joint Venture) 12.55 3,137.00-Others 6,740.42 10,492.89Bills discounted with banks 35,890.83 33,921.92Claims against the Company not acknowledged as debt 22,055.07 19,194.17Less Paid 3,620.68 18,434.39 - 19,194.17Central / State Sales Tax Act (Gross Amount) 19,452.38 12,815.31Less:- Paid 398.94 19,053.44 522.23 12,293.08Entry Tax Act (Gross Amount) 19,324.09 637.10Less:- Paid 1,442.96 17,881.13 120.12 516.98Central Excise Act,1944 (Gross Amount) 45,074.94 160,75.32Less:- Paid 1,297.36 43,777.58 662.57 15,412.75Income Tax Act,1961 (Gross Amount) 20,102.01 3,817.04Less:- Paid - 20,102.01 - 3,817.04Service Tax (Gross Amount) 39.56 14.56Less:- Paid 3.63 35.93 3.63 10.93Bonus to Employees for fi nancial year 2014-15(due to change in provision of the Act & stayed by various high Courts)

77.57 - -

Unpaid dividend (Including dividend tax) on cumulative Preference Shares

110.31 - -

Conversion of Land Amt. due to Authorities 118,39.90 118,39.90Less:- Paid 796.95 11,042.95 796.95 110,42.95

B Commitmentsa) Capital CommitmentsEstimated amount of contracts remaining to be executed on capital account and not provided for (Net of Advances)

3,02,515.08 2,54,876.35

b) Other CommitmentsLetters of credit (availed by the company) 17,618.46 6,579.18

NOTE-30 Due to Losses during the year, no provision has been made for Dividend of ̀ 110.31 on 2% Cumulative Compulsorily convertible preference shares of ` 100/- each fully paid up.

NOTE-31 Blast Furnace, Coke oven, Sinter Plant under capital work in progress, etc.

NOTE-32 Pre - Operative Expenses (In respect of project to be capitalised)

31.03.2016 31.03.2015

EXPENDITURE DURING CONSTRUCTION / INSTALLATION

Opening Balance 77,020.29 2,40,559.84

Pre-Operative/Trial Run Expenses transfer from Statement of Profi t and Loss (Refer note-24, 26 & 28)

11,759.33 15,804.74

Finance Costs (Refer note-27) 54,595.59 92,859.71

Depreciation 854.74 67,209.66 842.01 1,09,506.46

Total 1,44,229.95 3,50,066.30

Less : Capitalised during the year 317.13 2,73,046.01

Transferred to Capital Work in Progress 1,43,912.82 77,020.29

76


77777777

NOTE-33 The company has made long term strategic investment in Nova Iron & Steel Ltd., having accumulated losses. The said company fi led a scheme of capital reduction and restructuring with Hon’ble High Court of Chhattisgarh, which approved the said scheme vide its order dated 18th Sept., 2012.

Pursuant to the order of the Hon’ble 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 shares of said company were transferred under report which were acquired under SEBI (SAST) Regulations, in 2011.

Simultaneously, pursuant to share holders approval 100 shares of ` 2.40/- each have been consolidated to 24 equity shares of ` 10/- each.

In the opinion of management, the fall in market price of shares of Nova Iron & Steel Ltd. is temporary in nature. Based on legal opinion sought no provision for diminution has been made.

(` in Lacs)

NOTE-34 Auditor’s Remuneration includes: 31.03.2016 31.03.2015- Audit Fee 125.00 85.00- Tax Audit Fee 25.00 25.00- Certifi cation Fee 20.00 20.00- Corporate Governance 10.00 10.00- Expenses Reimbursed 8.55 8.48Total 188.55 148.48

NOTE-35 In respect of amounts due to Micro, Small and Medium Enterprises under “The Micro, Small and Medium Enterprises Development Act 2006”, the Company has certifi ed that as a policy the payment to suppliers is made within 45 days except in disputed cases. The amount remaining unpaid as at 31st March, 2016 was ` 219.31 Lacs (Previous year ` 84.13 Lacs).

The detail of amount outstanding to Micro, Small and Medium enterprises based on available information with the company as under:-

31.03.2016 31.03.2015Principal amount due and remaining unpaid 219.31 -Interest due on above and the unpaid interest 3.02 -Interest Paid - -Payment made beyond the appointed day during the year - -Interest due and payable for the period of delay 3.02 -Interest Accrued and remaining unpaid 3.02 -Amount of further interest remaining due and payable in succeeding years 3.02 -

NOTE-36 The Company has recognized liability based on substantial degree of estimation for excise duty payable on clearance of goods lying in stock as on 31.03.2016 of ` 6,255.55 Lacs (Previous year ` 9,625.69 Lacs) as per estimated pattern of dispatches. Actual outfl ow is expected in next year.

There is no other present obligation requiring provision in accordance with the guiding principles as enunciated in Accounting Standard - 29 as notifi ed under Companies (Accounting Standard) Rules, 2006, as it is not probable that an outfl ow of resources embodying economic benefi t will be required.

77


78

NOTE-37 As per Accounting Standard (AS)-15 “Employee Benefi ts”, the disclosure of employee benefi ts as defi ned in the Accounting Standards are given below:-

A. Defi ned Contribution Plans

Contribution to defi ned contribution plan, recognized as expenses / pre-operative expensed is as under:

(` in Lacs) 31.03.2016 31.03.2015

a) Employer contribution to Provident Fund / Other Funds 935.22 787.99b) Employer contribution to State Plans i) Employee State Insurance 71.10 82.28 ii) Labour Welfare Fund 0.88 1.42

B. Defi ned Benefi t Plan:

a) Leave Encashment/ Compensated Absence.

b) Contribution to Gratuity Funds - Employee’s Gratuity Fund.

In accordance with Accounting Standard (AS)-15 (revised 2005), the actuarial valuation carried out in respect of the aforesaid defi ned benefi t plans is based on the following assumption.

i) Actuarial Assumptions:- Leave Encashment/

Compensated Absence

31.03.2016

Leave Encashment/

Compensated Absence

31.03.2015

Employee Gratuity

Fund

31.03.2016

Employee Gratuity

Fund

31.03.2015

Discount Rate (per annum) 8.00% 7.75% 8.00% 7.75%Rate of increase in compensation levels 7.50% 7.50% 7.50% 7.50%Rate of return on plan assets. N.A. N.A. 9.40% 9.40%Expected Average remaining working lives of employees (years)

22.61 23.48 22.61 23.48

ii) Change in the obligation during the year ended 31st March, 2016Present value obligation as at beginning of the year

1,720.82 1,505.34 3,202.87 2,954.00

Interest cost 133.36 127.95 248.22 251.09Past service cost - - - -Current service cost 298.86 317.11 422.30 459.54Curtailment cost - - - -Settlement cost - - - -Benefi ts paid (229.42) (315.51) (405.01) (317.57)Actuarial (gain)/ loss on obligations (121.19) 85.93 (253.12) (144.19)Present value obligation as at end of the year 1,802.43 1,720.82 3,215.26 3,202.87

iii) Change in fair value Plan AssetsFair value of plan assets as at beginning of the year

- - 1,027.72 1,043.80

Expected return on plan assets - - 96.61 98.12Contributions - - 434.18 208.33Benefi ts paid - - (405.01) (317.57)Actuarial gain/ (loss) on plan assets - - (4.53) (4.96)Fair value of plan assets as at end of the year - - 1,148.97 1,027.72


7979

iv) Reconciliation of Present value of Defi ned Benefi t Obligation and Fair value of Assets

Leave Encashment/

Compensated Absence

31.03.2016

Leave Encashment/

Compensated Absence

31.03.2015

Employee Gratuity

Fund

31.03.2016

Employee Gratuity

Fund

31.03.2015

Present value obligation as at end of the year 1,802.43 1,720.82 3,215.26 3,202.87

Fair value of Plan Assets as at end of the year - - 1,148.97 1,027.72

Funded status (1,802.43) (1,720.82) (2,066.29) (2,175.15)

Present value of unfunded obligation as at end of the year

- - - -

Excess of actual overestimated - - (4.53) (4.96)

Unfunded net asset/ (liability) recognised in Balance Sheet.

(1,802.43) (1,720.82) (2,066.29) (2,175.15)

v) Expenses recognised in Statement of Profi t and Loss

Current service cost 298.87 317.11 422.30 459.54

Past service cost - - - -

Interest cost 133.36 127.95 248.22 251.09

Expected return on plan assets - - (96.61) (98.12)

Curtailment cost - - - -

Settlement cost - - - -

Net Actuarial (gain)/ loss recognised during the year

(121.19) 85.93 (248.59) (139.23)

Paid to left employees - - - -

Total Expense recognised in Statement of Profi t and Loss (Including transferred to capital work in progress)

311.04 530.99 325.32 473.28

Note:-The estimate of future salary increase considered in actuarial valuation takes into account infl ation, seniority, promotion and other relevant factors.

NOTE-38 The Company is engaged in the Iron & Steel business which, in context of Accounting Standard-17 on Segment Reporting is considered the only business segment.

(` in Lacs)

31.03.2016 31.03.2015a) Gross revenue of the Company as per geographical segment is as follows :- Within India 7,38,454.99 8,57,213.86 Outside India (Including export incentives) 1,11,862.74 1,62,397.28 Total 8,50,317.73 10,19,611.14b) Trade Receivable of the Company as per geographical segment is as follows :- Within India 1,01,635.31 1,12,769.74 Outside India 19,855.69 10,796.25 Total 1,21,491.00 1,23,565.99 The Company has common fi xed assets, other current assets and liabilities for producing goods for domestic as well

as overseas market.

79


80

NOTE-39 Disclosure in accordance with the Accounting Standard-18 Related Party Transaction.

i) Key Managerial Personnel:Mr. Sanjay Singal Chairman & Managing DirectorMrs. Aarti Singal Vice Chairperson & Director (Administration)Mr. R.P. Goyal Director (Commercial)Mr. R.N. Yadav Director (Technical)Mr. Dinesh Yadav Director (Project)Mr. H.C.Verma Director

ii) SubsidiaryBijahan Coal Pvt. Ltd.

iii) Joint Venture:Rohne Coal Company Pvt. Ltd.

iv) Associates:Nova Iron & Steel LimitedAmbey Steel & Power Private Limited

v) Enterprise over which key managerial personnel and their relatives having signifi cant infl uenceJasmine Steel Trading Ltd.Marsh Steel Trading Ltd.Vision Steel Ltd.Diyajyoti Steel Ltd.Aarti International Ltd.Atma Ram House Investment Pvt. Ltd.Sanjay Singal (HUF)Aarti Singal FoundationSkap Electronics (P) Ltd.Bhushan Steel Ltd. (Note “Pursuant to settlement dated 14.11.2011, interalia between Bhushan Steel Ltd. and Bhushan Power & Steel Ltd., Bhushan Steel Ltd. should not be considered to be a related party however Bhushan Steel Ltd. has been disclosed as a related party.)

vi) Relative of key managerial personnel:Mr. Aniket Singal


8181

Transactions with the above related parties are as follows :(` in Lacs)

Nature of Transactions Subsidiaries Associates Joint Ventures Key ManagerialPersonnel

Enterprise over which K.M.P. and their relative

having signifi cant infl uence

Relative of key managerial personnel

Total

31.03.2016 31.03.2015 31.03.2016 31.03.2015 31.03.2016 31.03.2015 31.03.2016 31.03.2015 31.03.2016 31.03.2015 31.03.2016 31.03.2015 31.03.2016 31.03.2015

Salary and Perquisites

Mr. Sanjay Singal 82.51 76.52 82.51 76.52

Mrs.Aarti Singal 42.00 40.50 42.00 40.50

Mr.R.N.Yadav 44.01 30.31 44.01 30.31

Mr. R.P.Goyal 36.72 35.25 36.72 35.25

Mr. H.C. Verma - 5.36 - 5.36

Mr. Dinesh Kumar Yadav 15.00 4.10 15.00 4.10

Total 220.24 192.04 220.24 192.04

Rent Paid

Atma Ram House Invesment Pvt.Ltd. 7.80 7.80 7.80 7.80

Skap Electronics Pvt. Ltd. 1.80 1.80 1.80 1.80

Total 9.60 9.60 9.60 9.60

Rent Received

Mr.R.N.Yadav 4.90 4.42 4.90 4.42

Ambey Steel & Power Pvt. Ltd. 0.30 0.30 0.30 0.30

Total 0.30 0.30 4.90 4.42 5.20 4.72

Investment / Advances Preference Shares:

Bijahan Coal Pvt. Ltd. 0.95 - 0.95 -

Rohne Coal Company Pvt. Ltd. 265.48 111.75 265.48 111.75

Adv.to Rohne Coal Co. For Pref. shares 7.45 17.31 7.45 17.31

Total 0.95 - 272.93 129.06 273.88 129.06

Interest earned

Nova Iron & Steel Ltd. 1992.50 2007.90 1992.50 2007.90

R.P.Goyal 18.14 4.12 18.14 4.12

R.N. Yadav 0.70 - 0.70 -

Total 1992.50 2007.90 18.84 4.12 2011.34 2012.02

Interest Expense

Aarti International Ltd. 36.76 60.05 36.76 60.05

Purchase


Bhushan Steel Ltd. 4022.40 - 4022.40 -

Aarti Singal Foundation 432.70 - 432.70 -

Total 100.64 145.52 4455.10 - 4555.74 145.52

Sale



Total 915.76 2686.83 402.80 - 1318.56 2686.83

Advance Received

Atma Ram 35.14 - 35.14 -

Loan Received

Aarti International Ltd. - 1000.00 - 1000.00

Sanjay Singal 2052.00 43.50 2052.00 43.50

Aarti Singal 17060.00 257.00 17060.00 257.00

Sanjay Singal (HUF) 2330.00 - 2330.00 -

Aniket Singal 2000.00 - 2000.00 -

Jasmine Steel Trading Ltd. 394.00 - 394.00 -

Marsh Steel Trading Ltd. 347.00 - 347.00 -

Vision Steel Ltd. 624.00 - 624.00 -

Diyajyoti Steel Ltd 395.00 - 395.00 -

Total 21112.00 300.50 4090.00 1000.00 25202.00 1300.50

Advance Given

Atma Ram 35.14 - 35.14 -

Loan Given


Issue of Pref.Shares of the Company

Sanjay Singal - 2563.97 - 2563.97

Aarti Singal - 2444.98 - 2444.98

Sanjay Singal (HUF) - 2519.98 - 2519.98

Aniket Singal - 2470.97 - 2470.97

Total - 5008.95 - 2519.98 - 2470.97 - 9999.90

81


82

Balance as at 31St March, 2016 (` in Lacs)

Nature of Transactions Subsidiaries Associates Joint Ventures Key Managerial

Personnel

Enterprise over which K.M.P. and their relative

having signifi cant infl uence

Relative of key managerial personnel

Total

31.03.2016 31.03.2015 31.03.2016 31.03.2015 31.03.2016 31.03.2015 31.03.2016 31.03.2015 31.03.2016 31.03.2015 31.03.2016 31.03.2015 31.03.2016 31.03.2015

Payable (Including for expense Reimbursement)

Mr. Sanjay Singal 4.47 5.47 4.47 5.47

Mrs.Aarti Singal 2.58 2.95 2.58 2.95

Mr.R.N.Yadav - 1.45 - 1.45

Mr. Dinesh Kumar Yadav 2.10 3.34 2.10 3.34

Total 9.15 13.21 9.15 13.21

Receivable

Mr. R.P.Goyal 153.02 96.50 153.02 96.50

Mr.R.N.Yadav 13.89 - 13.89 -

Total 166.91 96.50 166.91 96.50

Trade/Other Receivable



Aarti Singal Foundation 0.26 - 0.26 -

Total 7374.42 3996.95 200.76 - 7575.18 3996.95

Security Deposit

Atma Ram House Investment Pvt.Ltd. 13692.00 13692.00 13692.00 13692.00

Adv.Paid for Share Capital:-

For Preference Shares:


Investment :-

In Equity Shares:

Ambey Steel & Power Pvt. Ltd. 2828.29 2828.29 2828.29 2828.29



In Preference Share:


Bijahan Coal Pvt. Ltd. 0.95 - 0.95 -

Total 0.95 - 10500.64 10500.64 1093.30 827.82 11594.89 11328.46

Loan Received Including Interest

Aarti International Ltd. - 1055.53 - 1055.53

Sanjay Singal 2095.50 43.50 2095.50 43.50

Aarti Singal 17317.00 257.00 17317.00 257.00

Sanjay Singal (HUF) 2330.00 - 2330.00 -

Aniket Singal 2000.00 - 2000.00 -

Jasmine Steel Trading Ltd. 394.00 - 394.00 -

Marsh Steel Trading Ltd. 347.00 - 347.00 -

Vision Steel Ltd. 624.00 - 624.00 -

Diyajyoti Steel Ltd 395.00 - 395.00 -

Total 21412.50 300.50 4090.00 1055.53 25502.50 1356.03

Loan & Interest Recoverable


Bank Guarantee Issued



NOTE-40 Earning Per Share (EPS)

(` in Lacs)

31.03.2016 31.03.2015

Opening Balance of Equity Share 19,37,15,000 19,37,15,000

Total Number of Equity Shares for EPS (A) 19,37,15,000 19,37,15,000

Loss after tax (2,43,254.33) (1,36,311.36)

Less :- Preference dividend including tax thereon 110.31 103.36

Earnings Attributable To Equity Shareholders – For EPS (B) (2,43,364.64) (1,36,414.72)

Add: Preference Dividend including tax thereon N.A. N.A.

Earnings Attributable To Equity Shareholders-For Diluted EPS (C) (2,43,364.64) (1,36,414.72)

Basic Earning Per Share (`) (B/A) (125.63) (70.42)

Diluted Earning Per Share (`) (C/A) (125.63) (70.42)

Note: As the Conversion of preference share/convertible debts has anti dilutive effect, it has been ignored in current year as per the requirement of Accounting Standard-20 on ‘Earning per share’.

NOTE-41 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.

Based on the audited fi nancial statements received, the proportionate share of assets, liabilities, income and expenditure of the entity is as under:

(` in Lacs)31.03.2016 31.03.2015

Liabilities:-Current Liabilities-Trade Payables 1,002.16 867.29

- Short Terms Loans and Advances 115.32 115.32

- Other Current Liabilities 13.21 8.90

Total 1,130.69 991.51

Assets:-Non-Current Assets-Tangible Assets 305.09 305.12

-Long Terms Loans & Advances 768.32 768.32

Total 1,073.41 1,073.44

Current Assets-Cash and Bank Balances 1.18 0.63

-Short Terms Loans and Advances 784.97 784.97

Total 786.15 785.60

Income - -

Expenses-Finance Cost 139.40 84.92

-Administrative, Selling and Distribution Expenses 1.43 116.42

Total 140.83 201.34

Contingent Liability (Bank Guarantee Issued by the Company for Rohne Coal Company Pvt. Ltd.)

12.55 3,137.00

83


NOTE-42 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 31.03.2016 are as follows :-

Current Year Previous Year

US$ Equivalent

(Lacs)

INR Equivalent

(Lacs)

US$ Equivalent

(Lacs)

INR Equivalent

(Lacs)

Loan Payable - - - -

b) The Foreign currency exposure that are not hedged by derivatives instruments as on 31.03.2016 are as follows:-

i) Amount receivable in foreign currency on account of :-Sale of Goods 299.35 19,855.69 172.49 10,796.25Advance to Supplier against Goods 272.96 18,105.38 456.06 28,544.79Fixed Deposit 0.07 4.49 0.24 14.88

ii) Amount payable in foreign currency on account of :- Creditors 93.65 6,212.10 295.82 18,515.13Loans, Acceptances /Interest Payable 12,100.45 8,02,623.12 11,599.53 7,26,014.46Security Deposits 75.57 5,012.50 302.34 18,923.74Advance received from Customers 2,965.08 1,96,674.04 95.04 5,948.68

NOTE-43 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:

Current Year Previous Year(a) Number of Non-Resident Shareholders 1 1(b) Number of Equity Shares held by them 1,07,14,285 1,07,14,285

US$ INR US$ INR(c) i) Amount of dividend paid (Gross) - - 8,720.72 5,35,714.00

ii) Tax deducted at source - - - -iii) Year to which dividend relates - - 2013-14

NOTE-44 Balances on account of trade/other receivables, trade/other payables and loans and advances are subject to the confi rmation and reconciliation with respective parties.

NOTE-45 Previous Year Figures have been rearranged/regrouped wherever considered necessary.

NOTE-46 The Supreme Court of India, vide its order dated 24.09.2014, cancelled number of coal blocks allocated to various entities, which includes one coal block allocated to the company and one of its associated company, which were under development. Subsequently, the Government of India has issued the Coal Mines (Special Provision) Act, 2015, which inter-alia deal with the payment of compensation to the effected parties in regard to investment in the coal blocks.

No effect has been taken on the value of investment made by the company in the de-allocated coal blocks amounting to ` 56,182.63 Lacs and in Equity Shares/Preference Shares/advance for share capital in the associated company (Joint Venture) amounting to ` 1,106.63 Lacs. whose coal blocks have been de-allocated.

NOTE-47 In accordance with Reserve Bank of India (RBI) Circular DBR No. BP.BC. 53/21.04.132/2014-15 Dt. 15th December 2014 allowing fl exible restructuring of existing project loans (with option of periodic refi nancing) to operational infrastructure/core industries projects the consortium of banks with SBI as the lead bank has approved Corrective Action Plan (CAP) including fl exible restructuring of long term loans under “5/25” scheme by aligning their debt repayment obligations with cash fl ow generated during their economic life. Substitution of Rupee Term Loan(RTL) with Export advances against Export Performance Bank Guarantee (EPBG) and additional funding for Capital Expenditure (Capex).

84


The steering committee and joint lenders forum approved long term viability and structured the debt in accordance with extant guidelines of RBI. Rupee term loans are structured into loan with twenty fi ve year tenor. The long term viability plan had also been approved by the independent evaluation committee (IEC) constituted under RBI Guideline, held on 20/03/2015 and 25/03/2015. In view of the approval of the scheme, but pending sanctions by the lender banks, the company classifi ed long term borrowings maturity/overdue period in accordance with the scheme considered and approved by Joint Lenders Forum (JLF) dt. 27/02/2015.

JLF approved refi nancing of Rupee Term Loan of ` 587,300 Lacs in accordance with Reserve Bank of India (RBI) Circular DBR No. BP.BC. 53/21.04.132/2014-15 Dt. 15th December 2014. So far lenders sanctioned refi nancing (5/25) of ` 5,69,900 Lacs and implemented/disbursed the same with ` 5,59,500 Lacs. JLF also approved refi nancing of External Commercial Borrowing (ECB) loans of ` 4,34,900 Lacs and lenders approved refi nancing of ECB to RTL of ` 4,00,900 Lacs. Subsequently, in view of Reserve Bank of India (RBI) clarifi cation dated 24th September, 2015, company requested for refi nancing of ECB to ECB. Lenders have implemented/disbursed the same with ` 2,29,800 Lacs so far. Further, JLF approved prepayment of Rupee Term Loan of ` 7,77,600 Lacs with export advances received against EPBG facility of the corresponding banks. Majority of the lenders have already approved EPBG facility of ̀ 7,10,900 Lacs and issued EPBG of ` 1,84,300 Lacs so far. JLF also approved additional Capex Loan facility of ` 5,70,000 Lacs, however, lenders sanctioned ` 5,10,500 Lacs and disbursed ` 4,26,000 Lacs so far.

NOTE-48 In the opinion of the Board there is no impairment in the value of Fixed Assets of the Company.

NOTE-49 Due to the loss incurred, the company applied to the central government for approval of managerial remuneration. The approval from central government has been received during the year but further clarifi cation regarding leave encashment, P.F, electricity, medical reimbursement and taxable car perquisite has been sought which in our opinion do not require approval. Hence, the payment of leave encashment, P.F, electricity, medical reimbursement and taxable car perquisite are subject to clarifi cation/approval of central government.

NOTE-50 The company has promoted a company namely M/S Global Steel & Minerals Pte Ltd. in Singapore during fi nancial year 2013-14. Company has neither contributed nor has any intention to contribute in the share capital of M/S Global Steel & Minerals Pte Ltd.. Hence the same is not treated as a subsidiary.

NOTE-51 The company has during the year given intercorporate deposits to M/S Nova Iron & Steel Ltd. amounting to ̀ 1034.10 Lacs (Previous year ` 8,064.95 Lacs) to be utilized for general purpose repayable with interest at rate not below the bank rate. Total outstanding including interest as on 31.03.2016 is ` 17,096.65 Lacs (Previous year ` 17,164.30 Lacs). The company is in process of obtaining no objection certifi cate from Public Financial Institutions.

NOTE-52 CSR Expenditure

a) Gross amount required to be spent by the company during the year ` 235.00 Lacs (Previous year ` 1,750.99 Lacs)

b) Amount spend during the year on : (` in Lacs)

Current Year Previous Year

In Cash Yet to be Paid

Total In Cash Yet to be Paid

Total

i) Construction/acquisition of any assets (charged to Statement of Profi t & Loss as company has no control on assets).

238.00 - 238.00 1,400.98 - 1,400.98

ii) On purpose other than (i) above.

Rural rehiblation for State policies.

478.62 - 478.62 106.47 - 106.47

Total 716.62 - 716.62 1,507.45 - 1,507.45

NOTE-53 For computing deffered tax liability the amount of business loss and depreciation loss as allowable in income tax returns has been considered for recognizing deffered tax assets. On the basis of future projection taken on record by the management, the board is confi dent that there is a virtual certainty that suffi cient taxable income will be available in the future against which, the deffered tax assets can be realized in the normal course of business of the company.

NOTE-54 Includes ` 13,692 Lacs (Previous year ` 13,692 Lacs) given in earlier year as interest free security to Atma Ram House Investment Private Ltd. A Company in which directors are interested as reserving & obtaining Premise on lease/rent of the building to be constructed when ready for use.

85


NOTE-55 Loans and Advances include ` 153.02 Lacs (Previous year ` 96.50 Lacs) due from director of the Company Maximum amount outstanding at any time during the year ` 153.02 Lacs (Previous year ` 96.50 Lacs).

NOTE-56 OTHER ADDITIONAL INFORMATION :-

A. DETAIL OF OPENING STOCK, CLOSING STOCK AND SALES (` in Lacs.)AS AT

31.03.2016AS AT

31.03.2015i) Opening Stock:

Iron Ore Pellet 1,038.04 78.66H.R.Coil 19,308.87 9,081.60Sponge Iron 107.74 123.66Cold Rolled Steel Strips/Sheets/Coils 41,001.28 31,166.66Pig Iron - 87.78Bars, Rods of Alloys Steel, Iron & Non Alloy Steel & Other Hot Rolled Products 16,455.45 10,409.37Iron & Non Alloy Steel and Alloy Steel Ingots/Billets & Other Primary Forms 5,327.06 2,504.73Galvanised Steel Strips/Sheets 12,590.68 10,714.04Black & Galvanised Steel Tubes & Pipes & ERW Precision Tubes 17,876.58 14,113.05Colour Coated Sheets 6,165.44 5,852.50Cable Tape 115.28 170.86Iron & Steel 15,763.60 1,269.86

1,35,750.02 85,572.77

ii) Closing Stock:Iron Ore Pellet 1,489.46 1,038.04H.R.Coil 14,013.77 19,308.87Sponge Iron 894.92 107.74Cold Rolled Steel Strips/Sheets/Coils 15,010.12 41,001.28Bars, Rods of Alloys Steel, Iron & Non Alloy Steel & Other Hot Rolled Products 15,614.39 16,455.45Iron & Non Alloy Steel and Alloy Steel Ingots/Billets & Other Primary Forms 72.22 5,327.06Galvanised Steel Strips/Sheets 14,313.08 12,590.68Black & Galvanised Steel Tubes & Pipes & ERW Precision Tubes 17,885.98 17,876.58Colour Coated Sheets 6,105.30 6,165.44Cable Tape 65.83 115.28Iron & Steel 16,327.17 15,763.60

1,01,792.24 1,35,750.02

(` in Lacs.)



iii) Turnover:

Iron Ore Pellet - 17,175.23

H.R.Coil 47,265.72 53,073.34

Sponge Iron 10,112.20 1,678.15

Cold Rolled Steel Strips/Sheets/Coils 1,92,604.04 2,67,524.57

Bars, Rods of Alloys Steel, Iron & Non Alloy Steel & Other Hot Rolled Products 1,02,492.52 1,08,898.41

Metallurgical Coke 1,348.87 109.50

Iron & Non Alloy Steel and Alloy Steel Ingots/Billets & Other Primary Forms 327.76 198.30

Galvanised Steel Strips/Sheets 1,94,382.66 2,25,034.08

86


87878787

(` in Lacs.)



Black & Galvanised Steel Tubes & Pipes & ERW Precision Tubes 2,09,355.60 2,31,152.64

Colour Coated Sheets 58,031.06 67,000.79

Cable Tape 7,345.07 9,758.32

Power 1,145.26 1,420.46

Sale of Inputs 1,384.73 634.26

Iron & Steel 12,803.11 17,026.58

Scrap & Others 10,521.75 15,540.62

Export Incentive 1,197.38 3,385.88

8,50,317.73 10,19,611.14

B. Consumption of raw material and components (` in Lacs.)Year Ended 31.03.2016


Raw Material Consumed

Iron Ore 78,816.53 85,379.33

Coal / Coke 1,17,578.72 1,35,100.05

Dolomite 4,915.54 5,320.21

Hot Rolled, Galvanised,Sheet & Coil , Steel Scrap etc. 1,25,621.66 1,91,235.88

Zinc/ Allumunium 42,541.99 49,210.11

Paint 5,019.51 5,849.08

3,74,493.95 4,72,094.66

C. Purchase of goods traded

Iron & Steel 13,778.36 31,743.54

13,778.36 31,743.54

D. C.I.F. value of Imports :- (` in Lacs.)31.03.2016 31.03.2015

i) Raw Material 137,663.54 173,955.03

ii) Raw Material Traded 5,614.87 13,576.64

iii) Stores & Spares 10,171.87 9,247.87

iv) Capital Goods 90,894.36 47,887.74

E. Expenditure incurred in Foreign Currency :-i) Travelling 79.85 111.97

ii) Interest 32,375.40 31,083.60

iii) Bank Charges & Front End Fees 2,034.45 1,099.30

iv) Commission 154.79 292.06

v) Others 1,140.29 1,009.50

F. Earning in Foreign Currency :- FOB Value of Exports 1,03,747.20 1,51,942.86

87


88

G. Value of Imported and Indigenous Raw Material, Spares and Components consumed :- (` in Lacs.)31.03.2016 % age 31.03.2015 % age

i) Raw Material Imported 2,04,206.95 54.53 2,06,630.63 43.77

Indigenous 1,70,287.00 45.47 2,65,464.03 56.23

374,493.95 100.00 472,094.66 100.00

ii) Stores & Spares Imported 10,915.24 32.13 10,103.94 21.92

Indigenous 23,055.78 67.87 35,999.06 78.08

33,971.02 100.00 46,103.00 100.00






89

NOTES


90

NOTES


Primary Products• Pellet• Sponge Iron• Pig Iron

Flat Products• HR Coil• CR Coil• CR Sheet• GP Coil• GC Sheet

• Galvalume Coil• Galvalume Sheet• Colour Coated Coil• Colour Coated Sheet• Pre Painted Tile

Profile Sheet

• Precision Tube• Black Pipe• GI Pipe• Pre-Galvanised Pipe• Cable Tape

Long Products• Billets• Alloy Steel• Wire Rod• Peeled Bar• Hexagonal Bar

Others• Power

Bhushan Power & Steel Limited1st Floor, F Block, International Trade Tower,

Nehru Place, New Delhi -110 019T: 91-11-30451000 Fax: 91-11-23712737

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