Beruflich Dokumente
Kultur Dokumente
Shri P. Madhusudan
Chairman-cum-Managing Director
Shri T K Chand
Shri P.C.Mohapatra
Dr.G.B.S.Prasad
Shri D.N.Rao
Director (Commercial)
Director (Projects)
Director (Personnel)
Director (Operations)
Director (Finance)
Shri V S Jain
Prof. Sushil
FCA, FCMA
Independent Director
FCA
Independent Director
Independent Director
Independent Director
BANKERS
BOARD OF DIRECTORS
Chairman-cum-Managing Director
Shri P.Madhusudan (w.e.f 01/01/2014)
Shri A.P.Choudhary (Upto 31/12/2013)
FUNCTIONAL DIRECTORS
Commercial
Shri T K Chand
Projects
Shri P.C.Mohapatra (w.e.f 01/11/2013)
Shri N.S.Rao (Upto 31/10/2013)
Personnel
Dr.G.B.S.Prasad (w.e.f 01/05/2014)
Shri Y.R.Reddy (Upto 30/04/2014)
Operations
Shri D.N.Rao (w.e.f 01/08/2014)
Shri Umesh Chandra (Upto 31/07/2014)
ICICI Bank
Citi Bank
Standard Chartered Bank
Andhra Bank
HSBC Ltd
Vijaya Bank
JP Morgan Chase Bank
Kotak Mahindra Bank
DBS Bank
SIDBI
Royal Bank of Scotland
EXIM Bank
Bank of India
AUDITORS
M/s Tej Raj & Pal &
M/s. Rao & Kumar
Chartered Accountants,
Visakhapatnam.
Finance
Shri T.V.S. Krishna Kumar (w.e.f. 25/08/2014)
Shri P. Madhusudan (Upto 31/12/2013)
COST AUDITOR
M/s. Narasimha
Murthy & Co
Cost Accountants
Hyderabad
CONTENTS
1. Chairmans Address
GOVERNMENT DIRECTORS
Shri Lokesh Chandra
Shri V K Thakral
INDEPENDENT DIRECTORS
Shri V S Jain
Shri Ashhok Kumar Jain
Professor Sushil
Professor Suresh Kumar Garg
Dr. Sheela Bhide, I.A.S. (Retd.) (Upto 24/09/2014)
Lt.Gen. Arvind Mahajan (Retd) (Upto 24/09/2014)
Shri Ajay Kumar Goyal (Upto 23/09/2014)
Shri Rajib Sekhar Sahoo (Upto 22/09/2014)
REGISTERED OFFICE
Administrative Building
Visakhapatnam Steel Plant
Visakhapatnam 530 031
Andhra Pradesh
Website: www.vizagsteel.com
2
7-10
11
12-32
33-40
41-50
51
52
53-55
- Auditors Report
56-61
- Comments of C & AG
62-63
3-6
64
65-66
67
68-70
71-99
100-115
116
Chairmans Address
Dear Shareholders,
I take great pleasure in welcoming you all for the 32nd Annual General Meeting of your Company.
I take this opportunity to thank you all for making it convenient to attend the meeting and express my
gratitude for your continuous support & patronage which gives confidence and motivation to strive
for improved performance. The Directors Report, the Audited Statement of Accounts for the year
2013-14 and the Notice to the Shareholders have already been circulated and with your permission,
I take them as read.
I am glad to inform that the production from almost all the units of Stage 1 Expansion has
commenced and will reach a significant level of capacity build-up by end of this financial year
2014-15, including start of production from Stage-2 Units. The Company is further moving ahead in
capacity building through Modernisation & Upgradation to achieve 7.3 Mtpa progressively within the
next 18-24 months. Several strategic initiatives have been taken with which the company is all set to
become a multi-unit company, with new units coming up in UP & Rajasthan. The Company fully
3
recognises the unstinted support from a spectrum of agencies, dedicated RINL collective and help
from the Steel Ministry & other Govt. Departments.
Steel Scenario in 2013-14
India achieved a decent growth in 2013-14, the second best amongst the top ten steel producing
countries in the world and has emerged as a net exporter of steel, with the Crude steel production
recording a growth of 4% over the previous year. India is likely to maintain the momentum of exports
in 2014-15 also and your company, which exported 1 lakh tonnes of steel last fiscal, aims to double
that in the current fiscal.
Steel contributes to nearly 2% of the Gross Domestic Product (GDP) and employs over 500,000
people. The total market value of the Indian steel sector is expected to touch US$ 95.3 billion by 2016.
The infrastructure sector is the countrys largest steel consumer, attracting investments from several
global players and this has made the steel industry a high priority sector now. Also, steel demand
from other sectors like automobiles, consumer durables and construction is on the rise making the
industry vibrant.
The liberalisation of the industrial policy and government initiatives have given a definite impetus
to the steel industry. Foreign Direct Investment (FDI) has been another positive step, which will
ultimately lead to the countrys economic growth.
The Government has therefore drawn a Master Plan to reach 300 mtpa capacity by 2025 which
will need an investment of US$ 210 billion over the next decade.
Government Initiatives
The initiative of the Government to allow 100 percent FDI through the automatic route in the
Indian steel sector has significantly reduced the duty payable on finished steel products and has
streamlined the associated approval process.
In order to provide thrust on Research and Development (R&D), the Ministry of Steel is
encouraging R&D activities both in public and private steel sectors, by providing financial assistance
from Steel Development Fund (SDF) and Plan Scheme of the Central Government. Under the SDF
Scheme, 82 R&D projects have been approved with total project cost of Rs 677 Crore
(US$ 111.92 Million) wherein SDF assistance is Rs 370 Crore (US$ 61.17 million). Under the Plan
Scheme, eight projects have been approved with a total cost of Rs 123.27 Crore (US$ 20.38 Million)
wherein Government assistance is Rs 87.28 Crore (US$ 14.43 Million).
To encourage beneficiation and pelletisation of iron ore fines in the country, basic customs duty
on the plant & equipment of pellet plants/ beneficiation plants has been reduced from 7.5 percent to
2.5 percent. Import of critical raw materials for steel industry such as coking coal, non-coking coal
and scrap are subjected to zero or very low levels of custom duty.
Road Ahead
The future of the Indian steel industry is bright. The government plans to increase infrastructure
spending from the current 5 percent GDP to 10 percent by 2017 and the country is committed to
investing US$ 1 trillion in infrastructure during the 12th Five-Year plan. Taking 15 percent as steel
component in the total investment, then it alone can generate additional demand worth US$ 75 billion
of steel in the next few years or US$ 15 billion worth of additional demand a year and in terms of
quantity, an additional demand of 19 MT per annum.
With urban population increasing, there is a greater demand for steel to build public-transport
infrastructure. Emerging economies will also continue to be a major driver of demand as these
necessitate a huge amount of steel for urbanisation and industrialisation.
Your Companys performance
In the year 2013-14, your company has been able to achieve a Profit After Tax (PAT) of
Rs. 366 Crs, with Turnover of Rs.13,489 Crs. The State of Andhra Pradesh, where RINL has the
highest market share, got severely affected by the acute power crisis forcing several industries to
throttle production. Competition in the Bars & Rods market increased due to higher production in
this category from other major competitors without commensurate increase in consumption. Input
costs particularly basic raw materials like iron ore and Ferro alloys along with foreign exchange
fluctuation has also impacted the bottom-line. The initiatives taken by the company such as
optimisation of coal blend, maximisation of captive power generation, prudent fund management,
improvement in techno-economic parameters etc. could partially offset the impact of the above factors.
I am happy to inform that a Letter of Intent has been received for the first ever Iron Ore lease to
the Company in Bhilwara District of Rajasthan over an area of about 946 Hectares. The Government
of Rajasthan has also recommended allotment of another adjacent block of Iron Ore over an area of
4,500 Hectares which is under consideration of Ministry of Mines, Govt. of India. Your Company will
be setting up the state of art mining facilities at Bhilwara after all clearances are obtained.
The Companys strategic initiative for laying a Slurry Pipeline from Nagarnar to Visakhapatnam
and Setting up of Pellet Plant at Visakhapatnam in a Joint Venture with NMDC is also taking shape.
RINL for the first time joined hands with Railways for setting up of a Forged Wheel Plant adjacent
to the Rail Coach Factory in Raebareli, Uttar Pradesh. This plant would be the largest in the country
and would substitute import of Forged wheels by Railways. The orders are likely to be placed shortly
and the Unit is scheduled for completion by 2018.
Sustainability Initiatives:
The sustainable economic development of any country requires creating sustainable livelihood
besides industrial development on large scale. Keeping its responsibility towards the ecosystem,
your company has further strengthened its sustainability policy which focuses on Society, Energy and
Environment and the Sustainability Policy stands to fulfil the same.
Corporate Social Responsibility (CSR)
CSR activities play a pivotal role with focus on Inclusive sustainable growth. In the year
2013-14, the emphasis was on society care and provision of welfare measures to the needy. A separate
Section is provided in Directors report regarding CSR activities.
Corporate Governance
Your companys commitment to transparency in Corporate Governance is reflected in its
establishing appropriate systems & procedures for every process. A separate Report on Corporate
Governance along with Certificate on Compliances of CG guidelines and Secretarial Compliance form
part of the Directors Report.
Environment Management
As a manufacturing company, RINL is conscious of its role in maintaining clean environment for
future generation. In recognition of its achievements on this front, the company received Green
Rating Award from the Centre for Science and Environment (CSE). Your company has been conducting
Mass Plantation Melas to bring awareness and create responsibility. A separate section on the same
forms part of the Directors Report.
5
(P Madhusudan)
Chairman
14021
13738
437
558
374
2209
3039
3135
3071
2761
2973
3436
4081
5058
6169
8181
8491
9151
10433
10411
10635
11517
14462
94-95
95-96
96-97
97-98
98-99
99-00
00-01
01-02
02-03
03-04
04-05
05-06
06-07
07-08
08-09
09-10
10-11
11-12
12-13 13553*
*
*
13-14 13489*
Year
1751
Turnover
93-94
Other Revenue
1185
Gross Income
92-93
14899
12043
11392
11334
11337
9812
8938
8468
6378
5226
4234
3616
3127
2958
3168
3214
3154
2259
1907
1332
7026
8099
8472
7188
5535
5896
4280
3889
3585
3020
2050
1806
1602
1444
1394
1220
1405
1385
1311
1059
875
680
402
526
758
924
904
661
447
286
209
168
153
180
155
197
97
78
116
50
156
148
Raw Materials
consumed
795
Stock (Accretion) /
Decretion
22
1751
1469
1467
1273
1400
1157
1031
741
572
490
481
406
375
408
272
255
210
174
155
128
103
77
54
271
187
345
266
277
240
488
362
448
1006
476
455
475
445
432
111
439
422
430
415
340
340
449
338
360
191
165
78
88
32
49
31
11
49
123
291
351
382
361
198
430
407
366
347
198
437
3784
3684
3268
2701
2439
2842
2854
2525
2346
1997
1748
1635
1504
1364
1303
1151
1211
1163
1107
855
655
758
509
549
526
1110
982
1248
2027
2995
2222
1890
2254
1547
521
(75)
(291)
(562)
(457)
(177)
(246)
(204)
(364)
(573)
(568)
(987)
(478)
19
(304)
45
(532)
415
(917)
(343)
24
66
(310)
26
281
62
(103)
(95)
318
(118)
(115)
(50)
(200)
160
(152)
(70)
Employee Benefits
772
Depreciation &
Amortisation
91-92
Interest &
Wealth Tax
191
192
Profit / (Loss)
before tax
197
366
353
751
658
797
1336
1943
1363
1252
2008
1547
521
(75)
(291)
(562)
(457)
(177)
(246)
(204)
(364)
(573)
(568)
(987)
(478)
Profit / (Loss)
after tax
29
5740
6347
7727
7827
7827
7827
7827
7827
7827
7827
7827
7827
7827
7827
7827
6494
6494
6494
6494
6494
6494
3706
3506
3506
Capital
(27)
6401
6131
5932
5402
5058
4593
3654
1711
346
(906)
(2914)
(4461)
(4982)
(4907)
(4616)
(4054)
(3597)
(3420)
(3174)
(2970)
(2605)
(2033)
(1464)
(478)
175
4943
4900
2575
1137
1233
1008
441
917
458
531
37
1186
1989
2293
2343
2243
2205
3735
3831
3735
3474
3495
5476
3924
Loans / Buyers
Credit
281
13616
12588
10394
9795
9474
8972
8901
8876
8832
8763
8710
8731
8703
8643
8635
8615
8592
8548
8392
8289
7326
6157
5031
3720
36
9083
8799
8607
8265
8009
7750
7516
7085
6754
6322
5338
4903
4468
4012
3580
3148
3037
2819
2177
1747
1365
1026
704
248
Total Depreciation
245
Cr
4533
3790
1787
1530
1465
1222
1385
1790
2078
2441
3372
3828
4235
4630
5055
5467
5555
5729
6215
6542
5961
5131
4327
3472
Fixed Assets
Net Block
90-91
A Glanc
e of Financial Results sinc
e inc
eption
Glance
since
inception
No.
18371
18072
18079
17829
17830
17225
16416
16401
16574
16613
16755
16894
17026
17131
17254
17400
17354
17478
17642
17369
17483
17454
16656
14433
Employees as on
31st March
Other revenue
138 Crs (1%)
Internal Consumption
56 Crs (0.41%)
Sale of Iron & Steel Products
12645 Crs (92.04%)
Stock Accretion
19 Crs (0.14%)
Employees Benefits
1751 Crs (12.75%)
Stores & Spares consumed
557 Crs (4.05%)
Power and Fuel
R&M,Freight,Other expenses,
Interest etc 1491 Crs (10.85%)
Excise Duty
Depreciation
10
Cr
FINANCIAL HIGHLIGHTS
2013-14
A
13489
13738
12851
887
549
366
13553
14021
13135
886
526
353
5740
6401
2722
12141
13616
9083
4533
3863
6347
6131
3583
12477
12588
8799
3790
3829
6.6
2.7
7.3
3.0
32.6
13.5
15.5
28.6
6.5
2.6
7.1
2.8
24.7
9.8
14.0
28.2
0.8
0.4
5.0
1.0
0.6
3.8
2012-13
(ii) Ratio of
Current Assets to Current Liabilities
Quick Assets to Current Liabilities
Sales to Capital Employed
11
DIRECTORS REPORT
Dear Members,
On behalf of the Board of Directors of the
Company, I take great pleasure in presenting the
32 nd Annual Report of the Company for the
financial year ended 31st March 2014, together with
the Audited Statements of Accounts, the Auditors
Report and Comments on the Accounts by the
Comptroller and Auditor General of India.
Business Performance
12
1159
338
271
549
183
366
12141
9.69
1073
359
187
526
174
353
12477
8.93
1645
191
344
1110
359
751
13659
12.52
3.02
2.83
5.50
36.76
15.59
0.62
0.48
1.26
Technical Parameters
Rated
Actual
capacity 2013-14
3400
2500
- Total
Liquid
Steel
- Existing
3000
- Expansion
2800
- Total
2177
CPLY
Fulfillment on
DPR(%)
2780
82
Growth
over
CPLY(%)
-26
1593
1034
64
3769
3814
73
(-)1
3335
3250
111
56
**
3391
3250
**
Crude
- Existing
2820
3151
3071
112
Steel
- Expansion
2730
50
**
3202
3071
**
1957
1924
105
- Total
Billets
1857
Item
000t
SMS-1
CC Bloom yield
Unit
%
94.500 11-12
t/W.Hr 329.2
Mcal/t
conspn.
blm.rld. 421
kWh/t
conspn.
blt.rld.
Mcal/t
conspn.
blt.rld.
MMSM Power
consumption
329.0
12-13
425
12-13
69.47
70.56
12-13
19.6
20.5
12-13
80.11
12-13
kWh/t
blm.rld. 74.32
Bar products
710
874
867
123
Other Highlights:
850
995
973
117
600
**
998
973
**
- Expansion
- Total
MMSM products
850
939
878
110
Finished - Existing
2410
2808
2717
117
Steel
2050
- Expansion
- Total
Saleable - Existing
Steel
2656
- Expansion
- Total
**
2810
2717
**
2976
2900
112
40
**
3016
2900
**
2357
2228
**
a)
b)
Unit
Nos/day
309
305
12-13
Gross Coke
000 t
2654
2637
12-13
BF Coke
000 t
2209
2197
12-13
CRMP
Gross Flux
000 t
330
318
12-13
TPP
COB-4 Power
generation
MW
11.08
10.75
12-13
Unit
2012-13 2013-14
Lakh tons
28.02
Gr. (%)
30.35
Sales Turnover
cr.
13,550
13,489
Export Value
cr.
598
747
25
Performance Highlights
Parameter
Achievement
9% growth at
4.25 Lakh Tons
Continued Leadership in
Sale of Wire Rods
Customer Satisfaction
Index (CSI) Score
14
Customer Satisfaction
There has been continuous focus on
improving customer satisfaction by taking
initiatives on improving performance on various
parameters like quality, availability, pre and post
sales service, commercial terms, technical
specifications, etc.
As per the latest Customer Satisfaction
Survey conducted by Business and Industrial
Research Division (BIRD) of IMRB International,
Stores:
Warehousing based on scientific and modern
techniques is a continuous activity. The scale of
operations in Central Stores Deptt. (CSD) is huge
with 22,194 nos. receipts and 1,23,850 issues in
2013-14. Service level of Stock Control is 99.10%
and the average time of inspection of Day Books
has come down to 2.8 days from 3.8 days last year.
CSD Bagged Par Excellence Award at
National level at Kolkata and Achieved Gold Level
Award, Best 5S Coordinator Award from QCFI.
Work Place Management Practices - 5S have
been implemented and CSD is complying with the
ISO standards for Quality, Environment and
Occupational Health and Safety.
15
Vendor Development
( Crs)
borrowings (FCB)
8.25
47.32
8.59
11.15
Fin. Institutions
9.81
2.60
8.54
61.07
Foreign currency
10.21
Finance:
Direct Taxes
Due to proper presentation of the case before
the Dispute Resolution Panel by quoting the
relevant provisions of Austrian Income Tax Act and
continuous follow-up with the Assessing Officer
an amount of 12.43 Crs of Tax refund claims was
received from Income Tax Department which were Converter-2 in Steel Melt Shop-2
pending for a long period of more than 15 years.
commissioned on 30th Oct13.
An amount of 353.14 Crores was claimed TG-5 - Unit commissioned and synchronized
with Grid on 6th Nov13.
in the Return of Income of the company for AY
2013-14 by availing various tax incentives like Caster-3 in Steel Melt Shop-2 commissioned
on 28th Nov 13.
additional depreciation, special depreciation on
pollution control equipments, weighted deduction 1st Line of WRM-2 commissioned on 31st Jan14.
on R&D expenditures etc.
LF-2 in Steel Melt Shop-2 commissioned on
Indirect Taxes:
10th Feb14.
Proposed to the Central Excise department Converter-1 in Steel Melt Shop-2
commissioned on 28th Mar14.
an agreeable procedure regarding availing of
Cenvat Credit of service tax component involved 2 nd Line of WRM-2 commissioned on
in railway freight based on copy of Railway Receipt
30th Mar14.
(RR), which resulted in release of funds parked Upgradation & Modernisation to 7.3 Mtpa
provisionally with the department to the tune of
The Blowing-in of BF-1 was done on
13 to 15 Crs quarterly.
30.7.2014 after completion of category-1 capital
Railway Claims
repair.
Realisation of an amount of 8.60 Crs from
Orders for the following major packages
East Coast Railways on account of settlement of were finalized, towards Modernisation and
122 Claims during the calendar year 2013 which Upgradation .
were pending for more than 6 years.
LD Converters Revamping in SMS-1 in Mar13
Projects
Capital Repair of BF-2 in Aug13
6.3 Mtpa Expansion
3rd Converter in Mar13
The 6.3 Mtpa Expansion Project of RINL is
4th Caster in Feb14
nearing completion with the commissioning of all
major units of Stage-1 except Lime Kiln Plant which Sinter Machines - 1 & 2 Revamping in Mar14
is likely to be commissioned by Sept/Oct 14.
Forged Wheel Plant
Production commenced from major units viz.
The Largest forged Wheel Plant in the
Raw Material Handling Plant (RMHP), Sinter country is being set up at Rae Bareli, UP with an
Plant-3, Blast Furnace-3(BF-3), Turbo Blower-4, investment of about 1000 Cr. This is a specialized
Steel Melt Shop-2(SMS-2), Wire Rod Mill-2 (WRM-2) unit catering to the need of special grade wheels,
etc. All attempts are being made to quickly (1,00,000 wheels per annum), for High Speed
stabilize the units and ramp up the production.
Trains of Indian Railways. The Foundation stone
The Second stage of 6.3 Mtpa Expansion was laid on 08/10/2013. Tenders are under
includes installation of Special Bar Mill (SBM) and finalization and evaluation of technical bids is
Structural Mill (STM). All out efforts are being put expected shortly.
for commissioning of SBM & STM Mills during Axle Plant
2014-15.
The Second largest Axle Plant in India is
Major Units Commissioned during 2013-14
planned to be set up at New Jalpaiguri, West
Bengal about 400 Cr for production of 50,000
Boiler-6 commissioned on 20th June13.
Axles per annum for Indian Railways. Draft land
Sinter Plant-3 commissioned on 4th July13.
lease and off-take agreements with Railways are
New Oxygen PRS-3 in Steel Melt Shop-2 under finalization.
commissioned on 30th Oct13.
17
recommended for another block of over an area Introduction of Quality Improvement Projects
for Production departments to drive major
of 4866.20 Hectares and forwarded to Ministry of
process improvements in an annual time frame
Mines, Govt. of India for approval.
to address areas of immediate concern in
Corporate Strategic Management (CSM)
various departments. A total of 32 QIPs have
Several strategic initiatives have been taken
been identified and are in progress.
for overall growth of the organization salient
Introduction of initiative of Improvement
among them being :
Gemba so as to provide thrust on continuous
Iron ore Slurry Pipeline from Nagarnar and
improvements through involvement of senior
Pellet Plant at Vizag.
management teams. As per the scheme, team
of senior officers visits all shop floors on
Under RINLs strategic initiative with NMDC,
monthly basis to have a first-hand feedback on
to lay 13 Mtpa slurry pipeline from Nagarnar,
improvement efforts and also help
Chhattisgarh to Visakhapatnam and to set up a
improvement team with their insights.
6 Mtpa Pellet plant at Visakhapatnam, route
survey has been completed and Techno-Economic Knowledge Management
Feasibility Report (TEFR) has been prepared.
Thrust on Community of Practices (Expert
Financial Appraisal of the TEFR is nearing
forums) to ensure that experts in various domains
completion.
are engaged in facilitating problem solving
Transmission Line Tower project
through interactive sharing of knowledge.
The company also looks forward to setting Currently around 20 Expert forums are active.
up a 1,20,000 tonnes per annum Transmission
Trans organizational learning platform
Line Tower project at Visakhapatnam through joint through Knowledge Exchange Workshops has
venture with POWERGRID. With completion of been created. Knowledge Exchange Workshops
TEFR and Financial Appraisal, the project is well were conducted to gather critical knowledge for
set to enter into execution stage, subject to RINL prior to start of Category-1 Capital Repair
clearance from respective Boards.
of BF-1 and commissioning of PCI in BF-3 where
process experts from various SAIL plants, JSW,
Revision of Corporate Plan
JSPL, Tata Steel had participated and contributed
Vision 2027 is being developed through valuable inputs.
M/s PwC to explore various options for growth and
Five patent applications were filed during
sustainability and the final report is expected
2013-14.
18
Sustainable Development
Expenditure as %
of Turnover
0.23
0.37
19
Safety promotion
Large scale of visual communication has
been taken up and Safety slogans Boards and
Safety hoardings with eye-catching safety
messages at different important locations are
installed inside the plant.
Achievements:
Frequency Rate of accidents brought down to
0.29 from 0.75 of previous year
environmental aspects like real time emissions applications took place during the year which
from on-line stack monitors installed at all twenty includes:
(20) major chimneys and four (4) continuous R & D Portal which was launched to serve as
Ambient Air Quality Monitoring stations. Real time
an information tool within RINL regarding the
weather data being broadcasted through intranet
initiatives, facilities, research output details and
of VSP.
all other activities of R&D.
Green Visakha Program
VIGIL, the on-line application for Vigilance
VSP is participating in the ambitious Green
Department was launched. The objective of the
Visakha- Plantation Program, where it is targeted
system is to monitor vigilance complaints in a
to plant 40 lakh trees in Visakhapatnam in 5 years,
systematic and transparent way for better
@ 8 lakh trees per year. The program is initiated
handling, archival, retrieval and reporting.
by the Parliamentary Committee on Environment, Portal for Cost Monitoring Group Department
Forests, Science and Technology. VSP has already
was also launched during the year.
planted 25000 avenue plantation and 75000 block
SWASTH for Mines, the computerized online
plantation under Green Visakha Programme.
Medical and Healthcare Management System
Information Technology
for employees working in the Mines at
RINL leverages Information Technology as
Madharam & Jaggayyapeta.
the vital enabler in improving the customer- Web site of Arunodaya Special School was
satisfaction, organizational efficiency, productivity,
inaugurated.
decision-making, transparency and cost Retired Employee Information System was also
effectiveness.
launched for the use of retired employees of
To match with International Software
RINL. Online Payment System for retired and
Development Standards, RINL chose CMMI
separated employees using Payment Gateway
Level 3 certification, the first of its kind in Indian
was also deployed. This facility will facilitate to
Manufacturing Industry. The certificate is issued
pay Mediclaim Insurance enrolment amount
by CMMI Institute, Carnegie Mellon University,
online.
USA and recertified in the month of Nov13.
Awards
Mobile Version of corporate website
The projects ROMANS (Integrated Rings,
(www.vizagsteel.com) is in place. All the esteemed
Chocks
and Roll Management System) and
stakeholders including employees, vendors,
customers and career seekers can access the KUSHAL (Data Center Consolidation thru Server
website from their mobile devices conveniently. Virtualization & VDI) were selected among the
Mobile Appstore for mobile applications was also top 5 at the national level in the Annual Convention
of Computer Society of India.
developed in-house.
Enterprise Document Management System
was deployed for online approval of ISO
documents. DOP online, first of its kind for online
search of Delegation of Powers and Enterprise
Maintenance, a unique portal with Dashboard, 360
degree view of equipment, Forum, etc. were
deployed. Enterprise Resource Planning (ERP) is
in pipeline.
Human Resources
Manpower
The manpower strength of the company
stood at 18,371 as on 31st March, 2014 (against
18,072 as on 31st March, 2013). Out of this total
manpower, 3026 (16.47%) were Scheduled Castes
(SC) and 1323 (7.2%) were Scheduled Tribes (ST).
Web Applications
22
of the total of 494 vacancies filled through On grant of Annual Performance Reward
promotions, 95 (19.23%) were SC and 74 (14.98%)
(Bonus) for the year 2013-14 for 18,270/- on
were ST.
1st October, 2013.
Group-wise manpower as on 31st March, 2014
Group Total
Gen
OBC
SC
6294 3973
804
1062
455
378
5916
439
18
6278 4747
92
1095
344
56
6222
1563
25
3526 1821
814
512
379
69
3457
149
1878
61
2273 1568
203
357
145
45
2228
52
1852
27
5732
131
PHY
23
Welfare of SCs/STs
Women Empowerment
Course in which
admission
is sought
Degree courses in
1500/- per
Engineering /
month for the
Architecture / Medical / duration of
Veterinary / Dentistry / the course
Agricultural Sciences /
Pharmacy / Law
8
(Eight)
4
(Four)
24
No of
No of
Grievances Grievances
disposed pending as
off during
on
the year
31st Mar 14
Public
Nil
Employees
Nil
Nil
Vigilance
Right to Information
training and various other activities have been Corporate Social Responsibility
undertaken as outlined in the approved roadmap
In line with the credo of RINLs Vision, to be
of the company.
a respected Corporate Citizen, ensure clean and
Initiatives taken towards progressive use of green environment and develop vibrant
Hindi during 2013-14 are as follows:
communities around VSP, RINL has been
167 employees were trained in two batches relentlessly taking up several community
under Hindi Prabodh / Praveen courses development projects.
requirement.
Health care:
Conducting
medical
camps,
Child
immunization programmes, AIDS awareness
27
colonies of VSP reaching about 13,000 Prestigious Indira Gandhi Rajbhasha Shield for
beneficiaries per day, for a period of 4 months
effective implementation of official language in
during summer.
the organization
Conducting vocational skill development Ispat Rajbhasha Shield for excellent efforts
programs viz; Security Guards, Driving,
towards usage of Hindi at RINL
Automobile mechanism, Electrical works, DTP, 2 nd position in the 10 th National Award for
Dress designing, Embroidery, Beautician
Excellence in Cost Management
course, etc, towards self reliance of youth in
peripheral villages of VSP and Mines areas Corporate Vigilance Excellence Award 2013-14
for outstanding initiatives in vigilance arena
about 1035 unemployed youth were benefitted.
Individual and Team Excellence
Help during Natural calamities:
Prime Ministers Shram Award SHRAM VIR by
Ministry of Labour.
Greatest Corporate Leaders of India Award to
CMD- RINL
Vishwakarma
12 employees
Rashtriya
Puraskar
for
C&AG Audit
The Comptroller and Auditor General of India
(C&AG) vide its letter No. PDCA/A/c/Desk/201314/RINL/1.01/188 Dt. 22nd July, 2014 given NIL
Comments on the accounts of the Company for
the year 2013-14 under Section 619(4) of
Companies Act 1956 and the extant provisions of
the Companies Act 2013. A copy of the above letter
of C&AG is enclosed at Annexure-VII.
Consolidation of Accounts
As the Company is a fully owned Government of
India undertaking and is an unlisted Company, the
requirements in this regard as stipulated under
the guidelines of SEBI for consolidation of
accounts are not applicable. However, a statement
pursuant to Section 212 of the Companies Act
1956, relating to Subsidiary Company i.e. EIL is
placed at Annexure VIII.
i)
31
(P Madhusudan)
Chairman-cum-Managing Director
Annexure 1
2012-13 2013-14
81.68
85.01
%
Growth
4.1%
Import
7.93
5.45 (-)31.3%
Export
5.37
5.59
4.1%
Total availability
84.24
84.87
0.7%
Steel consumption
73.48
73.93
0.6%
33
Wire Rods
Rebars Squares
Scrap
March 12
683
668
602
420
March 13
601
592
528
384
March 14
545
530
500
355
Sales
Turnover
13552.93
1158.75
1072.60
Profit Before
Tax (PBT)
549.15
526.47
Profit After
Tax (PAT)
366.45
352.83
PBDIT
Sale of
Saleable steel
products
Sale of other
Products
Total Sales
Turnover
Less: Excise
Duty
(Including ED
on Trial run
sales)
Net Sales
Turnover
11606.27
11409.27
1883.19
2143.66
(12)
13489.46
13552.93
(0)
1464.72
(3)
12072.23
12088.21
(0)
Interest
Earned
180.05
233.33
(23)
Other
Non-operating
Income
126.83
221.96
(43)
0.11
0.13
(15)
Dividend
Cost of
materials
consumed
7025.82
8098.66
(13)
Employees
benefits
1751.10
1469.07
19
Finance Costs
338.12
359.25
(6)
Depreciation &
Amortisation
271.48
186.88
45
Other Expenses
(net of Inter
acc Adj)
2382.88
2244.58
11769.40
12358.44
(5)
Total
1417.23
35
Value
(Rs.Crs)
Date of capitalisation
330 T Boiler-6
300.71
67.5 MW TG5
279.95
2.6 Borrowings
Particulars
Secured Loans
1792.97
1827.78
(2)
Unsecured
Loans
3150.49
3072.22
Total Loans
(Long &
Short Term)
4943.46
4900.00
4530.03
3787.07
112
2.75
2.74
(14)
Capital Workin-Progress
10669.46
9965.24
(6)
22.20
48
Intangible
Intangible
Assets under
development
36
1241.56
(3)
Other Long
term Liabilities
165.56
105.00
58
Long term
Provisions
531.43
414.77
28
Non-current
Investments
362.53
362.58
Long term
Loans &
Advances
616.05
498.36
24
60.23
36.58
65
Other Non-
Net Block
Tangible
1203.53
Non-Current
Assets
Long term
Borrowings
30.11
Current Assets
CURRENT
ASSETS
Inventories
Semi-Finished/
Finished goods
Raw materials
Stores &
Spares
2083.70
1283.35
(1)
2
486.68
461.55
3863.04
3828.60
Gross
receivables
823.97
1029.96
(20)
Less: Provision
for Trade
receivables
20.32
20.31
Net
Receivables
803.65
1009.65
(20)
175.89
1625.02
(89)
Short term
Loans &
Advances
3461.35
3417.75
Other Current
Assets
96.73
96.73
(0)
Total Current
Assets
8400.66
9977.75
(16)
Total
Inventories
Trade
Receivables
CURRENT
LIABILITIES
Short term
Borrowings
3739.93
3658.44
Trade payables
829.93
737.94
12
Current
Liabilities
5484.04
5615.19
(2)
Short Term
Provisions
157.65
173.10
(9)
10211.55
10184.67
Total Current
Liabilities &
Provisions
FY 2013-14
Weighted
Savings
avg. RoI (%)
(Rs.Crs)
8.25
47.32
8.59
11.15
Borrowings from
Banks/Fin. Institutions
9.81
2.60
8.54
61.07
10.21
Weaknesses
Strong position in a
High Growth Market.
Foreign currency
borrowings (FCB)
Threats
Huge demand
potential in view of
the projected growth.
Encouraging signs due
to huge infrastructure
spend planned in 12th
Five year plan.
Projected growth in
Steel consumption.
Improved availability
of Ports & logistics.
Diversifying to new
product mix like
Axles/ Wheels and
Transmission
line Towers etc.
Stiff competition
further compounded
by Capacity
Expansion by
competitors and
entry of International
players.
Increasing raw
material prices &
shift of value chain
towards raw
materials.
Oligopolistic coal
supply side.
Single iron ore
supplier located in
disturbance
prone areas.
Predominant
secondary sector in
long products.
New materials,
products or
technologies could
reduce the demand
for RINLs steel
products.
Continuing of poor
macro-economic
environment e.g.
slowdown in
economic growth
rates, depreciating
Rupee, etc.
40
Annexure - II
Shri P. Madhusudan
Shri Umesh Chandra
Shri T.K. Chand
Shri Y.R. Reddy
Shri P.C. Mohapatra
Chairman-Cum-Managing Director
Director (Operations)
.
Director (Commercial)
Director (Personnel)
Director (Projects)
7)
12)
13)
14)
15)
* One Woman Director has been appointed in Feb2014, which complies with the provisions of the
Companies Act, 2013.
41
Board Meetings
During the financial year ended 31st March, 2014, Eleven Board Meetings were held on following dates;
Board Meeting No.
Date
Date
267
268
269
270
271
272
16-04-2013
25-04-2013
31-05-2013
21-06-2013
28-06-2013
05-09-2013
273
274
275
276
277
26-09-2013
18-11-2013
21-11-2013
17-12-2013
24-01-2014
Details of number of Board Meetings attended by Directors, attendance at the last Annual General
Meeting (AGM), number of other directorships and number of Board Sub-Committees positions as
Chairman / Member in RINL/VSP etc., during the year 2013-14 were as follows:
S.No.
Category
Name & Designation
of the Director(s)
No. of
No. of Board SubNo. of
No. of RINL
Committees
in other
Meetings
Attendance
No. of
other
Board Subcompanies
as
held
at
last
AGM
Board
DirectorCommittees as Chairman / Member
during Meetings held on
ships
on 31.3.2014
as on 31.3.2014
respective attended 21-09-2013
held as on
***
***
tenure of
31.3.2014 Chairman Member Chairman Member
Director
Functional directors
1)
2)
3)
4)
5)
6)
7)
8)
9)
10)
42
Shri P.Madhusudan**
CMD (w.e.f 01.01.2014)
11
11
Y
6
NIL
2****
NIL
NIL
Shri A.P.Choudhary
CMD (upto 31.12.2013)
10
10
Y
Retired Retired Retired Retired Retired
Shri Umesh Chandra
Director (Operations)
11
10
Y
5
NIL
1
1
3
Shri T.K.Chand
Director (Commercial)
11
11
Y
1
NIL
1
NIL
1
Shri Y.R.Reddy
Director (Personnel)
(upto 30.04.2014)
11
11
Y
NIL
NIL
2
NIL
NIL
Shri P.C.Mohapatra
Director (Projects)
(w.e.f. 01.11.2013)
4
4
N.A.
NIL
NIL
NIL
NIL
NIL
Shri N.S.Rao
Director (Projects)
(upto 31.10.2013)
7
7
Y
Retired Retired Retired Retired Retired
Part-time official Directors (i.e Government Nominee Directors)
Shri E.K.Bharat Bhushan, IAS
(upto 29.04.2013)
2
2
Resgn
Resgn
Resgn
Resgn Resgn Resgn
Shri V.K.Thakral, IAS
(w.e.f. 31.05.2013)
8
7
N
4
NIL
NIL
1
NIL
Shri Lokesh Chandra, IAS
11
10
N
7
NIL
NIL
NIL
NIL
S.No.
11)
12)
13)
14)
15)
16)
17)
18)
19)
20)
21)
22)
Category
Name & Designation
of the Director(s)
No. of
No. of Board SubNo. of
No. of RINL
Committees in other
Meetings
No. of Attendance
other
Board Subcompanies as
held
Board at last AGM DirectorCommittees as Chairman / Member
during Meetings held on
ships
on 31.3.2014
as on 31.3.2014
respective attended 21-09-2013
held as on
***
***
tenure of
31.3.2014 Chairman Member Chairman Member
Director
Retired Retired
Retired Retired
Retired Retired
Retired Retired
1
3
NIL
NIL
NIL
NIL
NIL
NIL
NIL
5
NIL
NIL
NIL
1
1
5
Arbitration cases.
44
website.
The details of remuneration & sitting fee paid to Directors during the financial year 2013-14:
(Value in )
S.
No.
Name
Basic
Salary
benefits
Allowances
and Perquisites
& other
retirement
Sitting
Fees
Total
1.
2.
P. Madhusudan*
A.P.Choudhary*
998426.00
772480.00
1711234
2961461
Nil
Nil
2709660
3733941
3.
4.
5.
6.
Umesh Chandra*
T.K.Chand*
Y.R.Reddy*
N.S. Rao*
1025740.00
946330.00
900000.00
526330.00
1719703
1617898
1501821
4121464
Nil
Nil
Nil
Nil
2745443
2564228
2401821
4647794
7.
P.C.Mohapatra*
403686.00
646962
Nil
Remarks
Superannuated
on 31-12-2013
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
1,60,000
4,20,000
1,60,000
3,80,000
4,40,000
3,00,000
3,00,000
Superannuated
on 31-10-2013
1050648 Director(Projects)
w.e.f 1-11-2013
Nil
Nil
Nil
1,60,000
4,20,000
1,60,000
3,80,000
4,40,000
3,00,000
3,00,000
18.
Prof. S.K.Garg***
Nil
Nil
2,80,000
2,80,000
(*)Whole Time Directors (WTD)/ Functional Directors. No remuneration is paid to the PartDirectors:
time official Directors by the Company.
The Whole Time Directors/ Functional Directors
are appointed in terms of the Articles of
Association of the Company by the President of
India, in consultation with the Chairman of the
Company for a period of 5 years or till the age of
Superannuation or until further orders, whichever
is earlier. The appointment may, however, be
terminated by either side on three months notice
or on payment of three months salary in lieu
thereof.
(**) Part-time official Directors/Govt Directors
Part-time official Directors/Government Directors
are nominated by Government of India as
46
Name
No.of Meetings
Attended
Held
Attended
Chairman
Member
(from 12.11.2013)
Member
(from 12.11.2013)
Dr.U.D.Choubey Member
DG (SCOPE)
(upto 10.10.2013)
Prof. Sushil
Status in the
Committee
II.
Date
Meeting No
Date
39
16.04.2013
42
30.08.2013
Audit Committee
40
31.05.2013
43
13.11.2013
I.
41
21.06.2013
44
16.12.2013
Remuneration Committee.
2)
Development
Grievance
47
5)
Committee of Management (COM) for Share (iii) AGM of the current year
Transfers.
Financial
Date
Time
6)
7)
Venue
Year
2013-14
6)
7)
8)
9)
Steering Committee.
(i)
Date, time and venue of the last three AGMs Vigil Mechanism (Whistle Blower) Policy of RINL:
(ii)
Date
Time
Venue
2010-11
2011-12
RINL/VSP,
2012-13
21.09.2013 16.00hrs
Visakhapatnam
48
Items of expenditure debited in books of Expenses incurred which are personal in nature
accounts, which are not for the purposes of the and incurred for the Board of Directors and Top
business:
Management:
There were no items of expenditure debited in There were no expenses incurred which are
books of accounts, which are not for the purposes personal in nature and incurred for the Board of
of the business.
Directors and Top Management.
Details of Administrative and Office Expenses as a percentage of total expenses vis-a-vis financial
expenses and reasons for increase/decrease :
Crores
Details
2013-14
2012-13
Administrative and
Office expenses
79.08
71.92
Financial expenses
338.12
359.25
Administrative expenses as a
(%) of Total expenses (13)
Administrative Vs Financial
expenses (%)(12)
0.67
Increase/Decrease over
2012-13 & Reasons therefor
12358.44
0.58
23.39
20.02
Note: Previous years figures have been regrouped as per Revised Schedule VI Format.
Means of communication
Quarterly Results
Limited (OMDC)
(c)
(b)
Number of Equity
Shares
Shri P. Madhusudan
300
100
100
100
Shri V.K.Thakral
100
100
488,98,45,400
Total
488,98,46,200
Annexure - III
b~y Fo uT uubzg
(o N N GN)
Rashtriya Ispat Nigam Limited
(A Government of India Undertaking)
We have reviewed the Balance Sheet and Statement of Profit & Loss, significant accounting policies and Notes to
Accounts, as well as the Cash Flow Statement for the year ended March 31,2014;
2.
Based on our knowledge and information, these statements do not contain any materially untrue statement or omit
any material fact or contain statements that might be misleading or omit to the state a material fact necessary to
make the statements made, in light of the circumstances under which such statements were made, not misleading
with respect to the statements made;
3.
Based on our knowledge and information statements present true and fair view of the Company's affairs and are in
compliance with the existing Accounting Standards and/or applicable Laws and Regulations;
4.
To the best of our knowledge and belief, no transaction was entered into by the Company during the year which was
fraudulent, illegal or violative of the Company's Code(s) of Conduct;
5.
We are responsible for establishing and maintaining internal controls for financial reporting and that we have evaluated
the effectiveness of the internal control systems of the company pertaining to financial reporting and we have disclosed
to the auditors and the Audit Committee, deficiencies in the design or operation of such internal controls, if any, of
which we are aware and the steps we have taken or propose to take to rectify these deficiencies;
6.
We have indicated to the Company's Auditors and Audit committee of RINL's Board of directors
(a) Significant changes, if any, in internal controls over financial reporting during the year;
(b) Significant changes, if any in Accounting Policies during the year and that the same have been disclosed in the
notes to the financial statements;
(c) Instances of significant fraud of which we have become aware and the involvement therein, if any, of the management
or an employee having significant role in the Company's internal control system over financial reporting,
7.
We further declare that all Board Members and Senior Managerial personnel have affirmed compliance with the
Code of Conduct for the year ended 31.3.2014.
P Madhusudan
Chairman-cum-Managing Director
Holding additional charge as Director (Finance)
Place: Visakhapatnam
Date : 31-07-2014
Note : Shri P. Madhusudan, elevated from Director (Finance) to CMD w.e.f. 01/01/2014 and is also holding
additional charge as Director (Finance) as on date.
uty Nz zT N To z, N G uV ut \zT @
Please send you reply to :
Web Site : www.vizagsteel.com
Annexure - IV
Phone : 0891-2751934
e-mail: pnraoandco@gmail.com
To
The Members,
Rashtriya Ispat Nigam Ltd.,
Visakhapatnam Steel Plant,
Administrative Building,
Visakhapatnam - 530 031
3.
In our opinion and to the best of our information and according to the explanations given to us
and the disclosures made in the Directors' Report, we hereby certify that the Company has
complied with the conditions of Corporate Governance as stipulated in the above mentioned
OM.
For P.N.Rao & Co.
Company Secretaries
Visakhapatnam
Dt : 31-07-2014
Flat No. 102,1 Floor, Door No. 9-42-19/1, Swamy Prasad Vinayagar, Balajinagar, Siripuram,
Adjacent to State Bank of India Administrative Office Main Entrance, Visakhapatnam-530 003
52
Annexure - V
Phone : 0891-2751934
e-mail: pnraoandco@gmail.com
To
The Members,
Rashtriya Ispat Nigam Ltd.,
Visakhapatnam Steel Plant,
Administrative Building,
Visakhapatnam - 530 031
Category of Company
The Company is a "Government Company" as defined under Section 617 of the Companies Act,
1956. It is an unlisted Public Limited company as on 31st March, 2014.
2.
3.
Flat No. 102,1 Floor, Door No. 9-42-19/1, Swamy Prasad Vinayagar, Balajinagar, Siripuram,
Adjacent to State Bank of India Administrative Office Main Entrance, Visakhapatnam-530 003
53
Phone : 0891-2751934
e-mail: pnraoandco@gmail.com
Composition of Board
The Company has a full time Chairman-cum-Managing Director, Two Govt. Directors, Five Functional Directors and Eight Independent Directors as on 31s1 March, 2014 thereby fulfilling the
requirement to have 1/3 of Board strength as Independent Directors as per the DPE Guidelines
and also 1/2 of the Board strength in terms of listing requirement for proceeding with the proposed Initial Public Offer (EPO).
5.
Board Meetings
The Board of Directors have duly met eleven (11) times on 16-04-2013, 25-04-2013, 31-05-2013,
21-06-2013, 28-06-2013, 05-09-2013, 26-09-2013, 18-11-2013, 21-11-2013, 17-12-2013 and 2401-2014 respectively in respect of which meetings, proper notices were given and the proceedings were properly recorded and signed in the minutes book maintained for the puipose.
6.
Audit Committee
The Board has constituted an Audit Committee as required under Corporate Governance Guidelines of DPE/provisions of the Companies Act, 1956. During the year, Six Meetings of the Audit
Committee were held on 16-04- 2013, 31-05-2013, 21-06-2013, 30-08-2013, 13-11-2013 and
16-12-2013 respectively in respect of which meetings, notices were given and the proceedings
were properly recorded and signed in the minutes book maintained for the purpose.
7.
Disclosure of Interest
The Directors have disclosed their interest in other companies to the Board of Directors pursuant to the provisions of the Act and the rules made thereunder.
8.
9.
Flat No. 102,1 Floor, Door No. 9-42-19/1, Swamy Prasad Vinayagar, Balajinagar, Siripuram,
Adjacent to State Bank of India Administrative Office Main Entrance, Visakhapatnam-530 003
54
Phone : 0891-2751934
e-mail: pnraoandco@gmail.com
11.
Directors' Report
The Company has duly complied with the provisions of Section 217 of the Act, 1956.
12.
13.
14.
Provident Fund
The Company has deposited both employees' and employer's contribution with the VSP Employees Contributory Provident Fund Trust within the prescribed time pursuant to Section 418
of the Act.
15.
Loans to Directors
The Company being a "Government Company" as on 31st March, 2014, the provisions of Section
295 of the Act are not applicable.
16.
Prosecution / Penalties
There was no prosecution initiated against or show cause notice received by the Company and
no fines or penalties or any other punishment was imposed on the Company, its Directors and
Officers during the financial year for offences under the Act.
Visakhapatnam
Dt : 31-07-2014
Flat No. 102,1 Floor, Door No. 9-42-19/1, Swamy Prasad Vinayagar, Balajinagar, Siripuram,
Adjacent to State Bank of India Administrative Office Main Entrance, Visakhapatnam-530 003
55
Annexure - VI
M/s Tej Raj & Pal
Chartered Accountants
31-30-38 / 10, 3rd Floor, Sai Sampath Enclave,
Narayana Street, Daba Gardens
Visakhapatnam - 530020 (A.P)
56
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the
financial 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:
(i)
In the case of the balance sheet, of the state of affairs of the Company as at 31st March 2014;
(ii)
In the case of the statement of profit and loss, of the profit for the year ended on that date; and
(iii)
In the case of the cash flow statement, of the cash flows for the year ended on that date.
As required by the Companies (Auditors Report) Order, 2003 (the Order), as amended, issued
by the Central Government of India in terms of sub-section (4A) of section 227 of the Act, we give
in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the Order.
2.
CA B. GangaRaju
Partner
M.No:7605
Place : Visakhapatnam
Date : 04.07.2014
57
Fixed Assets
(a) The Company has maintained proper records showing full particulars including quantative
details of fixed assets.
(b) All assets have not been physically verified by the management during the year but there is
a regular programme of verification which in our opinion is reasonable having regard to the
size of the company and the nature of its assets. No material discrepancies were noticed on
such verification.
(c)
2.
No substantial part of fixed assets of the company has been disposed off during the year.
3.
The Company is maintaining proper records of inventory. We are informed that no material
discrepancies have been noticed on physical verification.
Loans and Advances to parties covered in register maintained under section 301 of the Act
The Company had neither granted nor taken any loans, secured or unsecured, to / from companies
/ firms or other parties covered in the register maintained under Section 301 of the Act. In view of
this, clauses (b), (c), (d) and (e) of paragraph 4(iii) of the order are not applicable.
4.
58
of inventory, fixed assets and with regard to the sale of goods and services. During the course of
our audit, we have not noticed continuing failure to correct any major weaknesses in the internal
control system.
5.
Transactions to be entered into Register maintained under Section 301 of the Act
According to the information and explanations given to us, there are no transactions that need to
be entered into the register maintained under section 301 of the Companies Act, 1956. As there
are no such transactions, clause (b) of paragraph 4(v) is not applicable.
6.
7.
8.
9.
According to the explanations given to us, Company is not required to make any contribution
under the Employees State Insurance Act.
(d) According to the information and explanations given to us, as at the end of the financial year
the disputed dues of Income Tax, Sales Tax, Service Tax, Customs Duty, Excise Duty and
Cess which have not been deposited is as follows:
59
Name of the
Statute
Nature of dues
Finance Act,
Customs &
Excise Act
Excise duty,
Service Tax and
Cenvat
-do-
-do-
CESTAT
-do-
-do-
-do-
Customs
CESTAT
-do-
Customs
0.36
-do-
STAT
4.34
-do-
The Andhra
Pradesh General
Sales Tax Act &
C S T Act
-doUP Trade Tax Act
ST Appeal
(Kanpur Branch)
VAT
Sales Tax
Amount
( in Crs.)
3.98
120.03
1.71
26.89
1675.08
0.10
0.05
0.26
60
CA B. Ganga Raju
Partner
M.No:7605
Place : Visakhapatnam
Date : 04.07.2014
61
Annexure - VII
oy zQ os zQyq uT
utzN umu[N zQyq L
tz t zQyq zg| N N|, {tt
INDIAN AUDIT AND ACCOUNTS DEPARTMENT
OFFICE OF THE PRINCIPAL DIRECTOR OF
COMMERCIAL AUDIT AND EX-OFFICO MEMBER,
AUDIT BOARD, HYDERABAD.
PDCA/A/c/Desk/2013-14/RINL/1.01/188
utN :
Date : 22 July 2014
To
The Chairman-cum-Managing Director,
Rashtriya Ispat Nigam Limited,
Visakhapatnam
Sub: - Comments of the C&AG of India under Section 619(4) of the Companies Act, 1956 on
the accounts of Rashtriya Ispat Nigam Limited, Visakhapatnam for the year ended on 31
March 2014
Sir,
I forward herewith the Nil Comments Certificate of Comptroller and Auditor General
of India under Section 619(4) of the Companies Act, 1956 on the accounts of Rashtriya Ispat
Nigam Limited, Visakhapatnam for the year ended on 31 March 2014.
2.
The date of placing the comments along with Annual Accounts and Auditors Report
before the shareholders of the Company may please be intimated and a copy of the
proceedings of the meeting may be furnished.
3.
The date of forwarding the Annual Report and Annual Accounts of the Company
together with Auditors Report and comments of the Comptroller and Auditor General of
India to the Central Government for being placed before the Parliament may please be
intimated.
4.
Ten copies of the Annual Report for the year 2013-14 may please be furnished in due
course.
The receipt of this letter along with the enclosures may please be acknowledged.
Encl:- As above
Yours faithfully
(Arabinda Das)
Principal Director
- 500 004
A.G.s Office Complex, Saifabad, Hyderabad - 500 004
e-mail : mabhyderabad@cag.gov.in
62
COMMENTS OF THE COMPTROLLER AND AUDITOR GENERAL OF INDIA UNDER SECTION 619(4) OF THE
COMPANIES ACT, 1956 ON THE ACCOUNTS OF RASHTRIYA ISPAT NIGAM LIMITED, VISAKHAPATNAM FOR
THE YEAR ENDED 31 MARCH 2014
The preparation of financial statements of Rashtriya Ispat Nigam Limited, Visakhapatnam for the year ended
on 31 March 2014 in accordance with the financial reporting framework prescribed under the Companies Act,
1956 is the responsibility of the management of the company. The Statutory Auditor appointed by the
Comptroller and Auditor General of India under Section 619(2) of the Companies Act, 1956 is responsible for
expressing opinion on these financial statements under Section 227 of the Companies Act, 1956 based on the
independent audit in accordance with the Standards on Auditing prescribed by their professional body, the
Institute of Chartered Accountants of India. This is stated to have been done by them vide their Audit Report
dated 04 July 2014.
I, on the behalf of the Comptroller and Auditor General of India, have conducted a supplementary audit under
Section 619(3) (b) of the Companies Act, 1956 of the financial statements of Rashtriya Ispat Nigam Limited,
Visakhapatnam for the year ended on 31 March 2014. This supplementary audit has been carried out
independently without access to the working papers of the Statutory Auditors and is limited primarily to
inquiries of the Statutory Auditor and company personnel and a selective examination of some of the accounting
records. On the basis of my audit, nothing significant has come to my knowledge, which would give rise to any
comment upon or supplement to Statutory Auditors report under Section 619(4) of the
Companies Act, 1956.
For and on the behalf of the
Comptroller and Auditor General of India
Place: Hyderabad
Date: 22 July 2014
(Arabinda Das)
Principal Director of Commercial Audit &
Ex-Officio Member, Audit Board,
Hyderabad
63
Annexure - VIII
STATEMENT PURSUANT TO SECTION 212 (1) (e) OF
THE COMPANIES ACT 1956,
RELATING TO SUBSIDIARY COMPANIES FOR THE YEAR 2013-14
Eastern
Investments
Limited (EIL)
PARTICULARS
1.
2.
st
31 March 2014
Bisra Stone
Orissa MinLime Comeral Development Corpo- pany Limited
(Subsidiary
ration (Subof EIL)*
sidiary of EIL)*
st
st
7,36,638
51.00
3,00,089
50.01
4,38,34,782 #
50.22 @
0.05
3.13
(9.43)
2.38
9.06
(13.20)
0.11
Nil
Nil
0.61
Nil
Nil
$
$
Notes:
* As per Section 4(1)( c) of companies Act 1956 a subsidiary of a subsidiary of holding company is a
subsidiary of holding company.
# Out of the above 4,36,51,855 equity shares are held by EIL and 1,82,927 are held by RINL.
@ Extent of holding through EIL is 50.01% and directly is 0.21%.
$ Net aggregate amount of profit/loss includes the proportionate profit relating to direct holding of
RINL.
For and on behalf of Board of Directors
(P. Madhusudan)
Chairman-Cum-Managing Director
(P. Mohan Rao)
Company Secretary
Place: Visakhapatnam
th
Date: 28 September, 2014.
64
Annexure A
Information required under Section 217(1)(e) of the Companies Act, 1956 read with the Companies
(Disclosures of Particulars in the Report of Board of Directors) Rules, 1988.
Commissioning of 14 MW TRT of BF 3
RINL-VSP is the first Indian Steel plant to Commissioning of Waste Heat Recovery system
be certified for ISO: 50001 Energy Management
in stoves of BF-3 for preheating of fuel gas for
System.
stoves heating. This system will reduce fuel
gas loss to atmosphere by recovering waste
Energy Consumption (Gcal/tCS ) & CO 2
heat and preheats combustion air and fuel gas.
Emissions(Tons/tCS):
Year
CO2 emissions
(Tons/tCS)
2012-13
6.31
2.66
2013-14
6.19
2.66
Total volume MN
of LD Gas
Cum
recovered at
LD Gas
recovery plant
307.559
171003
269614
Total power
MWH
generated at
Back Pressure
Turbine Station
(BPTS)
193331
154665
243855
Total power
MWh
generated at
Gas Expansion
Turbine
Station (GETs)
41671
33337
52561
Name of
Fuel used
in TPP
Units
Value
Boiler Reduction
Coal
of CO2
Saved
emission
(tonnes) (tonnes)
Coke Oven
Gas
MNcum 498.685
706138
1113344
BF gas
MNcum 2582.921
611291
963803
65
66
FORM-A
A. Power and fuel Consumption 2013-14
1)
2)
3)
4)
Electricity:
a) Purchased (Import from AP TRANSCO)
b) Gross exported
c) Net Imported
Total cost
Cost/unit
d) Own generation-Through Steam Turbine/Generator
Total cost
Cost/unit
-Through Back pressure Turbine Station
-Through Gas Expansion Turbine Station
Coal consumption
a)Boiler coal (indegenous)
Total cost
Cost/unit
b)Imported coking coal
Total cost
Cost/unit
c)Imported Soft Coking Coal
Total cost
Cost/unit
d)US Coal & Canada coal
Total cost
Cost/unit
e)Indegenous Medium coking coal
Total cost
Cost/unit
Furnace oil consumption
Total cost
Cost/unit
HSD Consumption
Total cost
Cost/unit
Unit
2013-14
2012-13
MWH
MWH
MWH
Rs Crores
Rs/unit
MWH
Rs Crores
Rs/unit
MWH
MWH
342044
1112
340932
267.73
7853
1681798
927.34
5514
193331
41671
318276
1522
316754
280.80
8865
1613665
866.54
5370
178846
53675
t
Rs Crores
Rs/unit
t
Rs Crores
Rs/unit
t
Rs Crores
Rs/unit
t
Rs Crores
Rs/unit
t
Rs Crores
Rs/unit
Kl
Rs Crores
Rs/unit
Kl
Rs Crores
1345160
294.86
2192
2622497
2619.61
9989
500049
415.94
8318
438467
449.47
10251
399153
270.87
6786
3250.91
16.38
50396
2665.99
16.13
1270444
257.52
2027
2570245
2973.52
11569
402620
388.89
9659
475987
490.46
10304
496590
319.41
6432
570.67
2.85
49870
2573.30
15.58
Rs/unit
60502
60530
Unit
KWH
106.5
103.1
Kg
420.1
413.7
Kg
Kg
Kg
Kg
liters
liters
tons
819.1
156.2
136.9
124.7
1.02
0.83
3201685.00
836.9
131.1
155.0
161.7
0.19
0.84
3071232.00
67
FORM B
FORM FOR DISCLOSURE OF PARTICULARS
WITH RESPECT TO TECHNOLOGY ABSORPTION
Research & Development (R & D)
Specific areas in which R&D carried out by the
company
Research & Development in RINL is mainly
pursuing in the areas of process improvement,
environment protection, waste management,
cost reduction, new product development and
new technology development
Benefits derived as a result of the above R&D
(a) Optimization of design and operating
parameters like wire speed, bath super
heat, steel grades on Calcium recovery and
its efficacy for inclusion modification
Visakhapatnam Steel Plant is practicing
Aluminium and Silicon deoxidation of steel.
Alumina is formed during the process
creating clogging problems during casting.
A joint research project is taken up with IIT,
Kharagpur to mitigate the problem.
Addition of calcium in the form of Ca-Si and
Ca-Fe resulted in modification of inclusions
thereby reducing clogging tendency.
(b) Effect of iron ore micro-fines on sintering
process
69
70
71
72
Note
No.
As at
31st March 2014
As at
31st March 2013
B 01.00
B 02.00
5739.85
6400.89
6346.82
6130.50
B 03.00
B 04.00
B 05.00
B 06.00
1203.53
419.01
165.56
531.43
1241.56
229.21
105.00
414.77
B 07.00
B 08.00
B 09.00
B 10.00
3739.93
829.93
5484.05
157.65
3658.44
737.94
5615.19
173.10
24671.83
24652.52
B 11.00
B 11.00
B 12.00
4530.03
2.75
10669.47
30.11
15232.36
3787.07
2.74
9965.24
22.20
13777.25
B 13.00
B 14.00
B 15.00
362.53
616.05
60.23
362.58
498.36
36.58
B 16.00
B 17.00
B 18.00
B 19.00
B 20.00
3863.04
803.65
175.89
3461.35
96.73
3828.60
1009.65
1625.02
3417.75
96.73
24671.83
24652.52
CURRENT ASSETS
Inventories
Trade receivables
Cash and Bank balances
Short-term Loans and Advances
Other Current assets
Total
Significant Accounting Policies [A] and
Notes to Accounts [B 01.00 to B 31.00] annexed form part of the Accounts
For and on behalf of Board of Directors
(P. Madhusudan)
Chairman-cum-Managing Director
(Umesh Chandra)
Director (Operations)
CA B. Ganga Raju
Partner
M.No:7605
Place : Visakhapatnam
Date : 04.07.2014
73
STATEMENT OF PROFIT AND LOSS FOR THE YEAR ENDED 31st MARCH 2014
Crs
Note
No.
Particulars
INCOME
Revenue From Operations
Less: Excise duty
Other Income
Total Revenue
B 21.00
B 23.00
B 24.00
B 25.00
B 26.00
B 11.01
B 27.00
Basic and Diluted Earnings Per Share (in )(Face Value 10 per share) B 29.00
Significant Accounting Policies [A] and
Notes to Accounts [B 01.00 to B 31.00] annexed form part of the Accounts
For and on behalf of Board of Directors
Place : Visakhapatnam
Date : 04.07.2014
74
12,028.33
306.99
12,335.32
116.76
(116.76)
0.00
(7.10)
189.80
366.45
12,110.69
455.42
12 566.11
8,098.66
(303.74)
1,469.07
359.25
186.88
2,296.75
12,106.87
52.17
12 054.70
511.41
15.06
526.47
0.00
526.47
0.00
526.47
7,025.82
18.65
1,751.10
338.12
271.48
2,441.45
11,846.62
58.57
11,788.05
547.27
1.88
549.15
0.00
549.15
0.00
549.15
B 28.00
13,431.48
1,403.15
B 22.00
EXPENSES
Cost of materials consumed
Changes in Inventories of Semi-finished/Finished goods
Employees' benefits
Finance Costs
Depreciation and Amortisation
Other expenses
Total Expenses
Less: Inter account adjustments-raw material mining cost
Net Expenses
Profit for the year before Prior period Items (PPI)
Prior period items - Net (Debit) / Credit
Profit after PPI and Before Exceptional & Extraordinary Items and Tax
Exceptional Items
Profit Before Extraordinary Items and Tax
Extraordinary items
Profit Before Tax
Tax Expense
Current Tax (MAT)
Less: MAT Credit Entitlement
Earlier years adjustments
Deferred Tax
Profit /(loss) for the period from Continuing Operations
Profit /(loss) for the period from Discontinuing Operations
Tax Expense of Discontinuing Operations
Profit /(loss) for the period from Discontinuing Operations (after Tax)
(P. Madhusudan)
Chairman-cum-Managing Director
103.98
(96.88)
7.10
(1.69)
168.23
352.83
0.00
0.00
0.00
0.00
0.00
0.00
366.45
352.83
0.62
0.48
(Umesh Chandra)
Director (Operations)
CA B. Ganga Raju
Partner
M.No:7605
CASH FLOW STATEMENT FOR THE YEAR ENDED 31st MARCH 2014
Crs
Particulars
549.15
526.47
271.48
338.12
33.84
(0.07)
(0.56)
(120.01)
(0.11)
1071.84
187.68
359.25
(17.20)
1.01
(0.45)
(151.26)
(0.13)
905.37
(34.44)
206.00
(130.45)
(23.65)
(1.68)
183.13
(425.49)
(582.50)
(212.87)
(26.24)
96.65
639.53
(103.46)
1167.29
(143.60)
250.83
(1664.91)
0.05
0.11
0.77
125.57
(1538.41)
(1351.96)
152.59
0.13
0.59
206.42
(992.23)
(38.03)
81.49
0.56
(606.97)
(396.16)
(101.64)
(17.26)
0.00
(1078.01)
1241.56
1083.30
1.44
(1380.50)
(333.03)
(270.79)
(43.91)
5.00
303.08
(1449.13)
(438.32)
1625.02
175.89
2063.34
1625.02
1. This statement has been prepared under the Indirect Method as set out in the Accounting Standard 3.
2. Significant Accounting Policies and Notes to Accounts form part of the Cash Flow Statement.
3. Previous years figures have been rearranged / regrouped wherever necessary to conform to current years classification.
For and on behalf of Board of Directors
As per our report of even date
(P. Madhusudan)
Chairman-cum-Managing Director
(Umesh Chandra)
Director (Operations)
CA B. Ganga Raju
Partner
M.No:7605
Financial Statements are prepared under the historical cost convention in accordance with fundamental accounting
assumptions and Generally Accepted Accounting Principles (GAAP) in India and the relevant provisions of the
Companies Act, 1956 including Accounting Standards notified there under.
1.2
The preparation of financial statements in conformity with Generally Accepted Accounting prinicples require
estimates and assumptions to be made that affect the reported amounts of assets and liabilities and disclosure of
contingent liabilities on the date of financial statements and the reported amounts of revenues and expenses
during the reporting Period. Actual results could differ from these estimates and differences between actual
results and estimates are recognised in the periods in which the results are known/materialised.
2.2
Expenditure attributable / relating to construction, to the extent not directly identifiable to any specific Plant Unit,
is kept under Expenditure During Construction for allocation to Fixed Assets and is grouped under Capital Workin- Progress.
3.0 INVESTMENTS
3.1
3.2
Long-term investments are carried at cost. Diminution in value, other than temporary, is provided for.
4.0 INVENTORIES
4.1
4.2
Sales are recognized when all significant risks and rewards of ownership have been transferred to the buyer.
5.2
Export incentives under various schemes are recognized as Income on certainty of realisation.
6.0 CLAIMS
6.1
7.2
Exchange differences arising on account of settlement / conversion of foreign currency monetary items are
recognised as expense or income in the Period in which they arise.
76
Actuarial gains and losses on defined benefit plans are recognised during the Year,
Depreciation is provided on straight line method (SLM), up to full value of the cost of asset over the specified period
derived in accordance with the provisions of Schedule XIV of the Companies Act, 1956, except the following:
9.1.1 Assets costing up to 5000/- are fully depreciated in the year of capitalisation.
9.1.2 Depreciation on the following categories of assets is provided up to full value of the cost of asset on SLM over the
period of their useful life based on the Managements estimate given in brackets.
Photo Copiers & Fax Machines, Telecom Equipment (5 years); Cranes, Slag Pot Carriers, Audio & Visual Equipment
(10 years); Other Office Equipment, Earth Moving Equipment, Forklift Trucks, Air Conditioners, Refrigerators,
Water Coolers, Air Coolers, Freezers (7 years); Cars (6 years); Safety Equipment, Other light vehicles (8 years);
Computers [including system Software] (4 years); Coke Ovens & Coal Chemical Plant (15 years).
9.2
9.2.1 Mining lease rights are amortised over the period of lease.
9.2.2 Software which is not an integral part of related hardware, is treated as intangible asset and amortised over a
period of 4 years or its licence period, whichever is less.
10.0 BORROWING COSTS
10.1 Borrowing costs incurred for obtaining assets which take more than 12 months to get ready for its intended use are
capitalised to the respective assets wherever the costs are directly attributable to such assets and in other cases by
applying weighted average cost of borrowings to the expenditure on such assets.
10.2 Other borrowing costs are treated as expense for the year.
11.0 PRIOR PERIOD ITEMS
11.1 Items of Income / Expenditure which arise in the current period as a result of errors or omissions in the preparation
of Financial Statements of one or more prior Years, exceeding 5,00,000/- in value, in each case are treated as
prior period items.
77
B. NOTES FORMING PART OF THE ACCOUNTS FOR THE YEAR ENDED 31st MARCH, 2014
Note 01.00 : Share Capital
Particulars
As at
31st March, 2014
Crs
As at
31st March, 2013
4890.00
3110.00
8000.00
4890.00
3110.00
8000.00
4889.85
4889.85
850.00
1456.97
5739.85
6346.82
AUTHORISED
4,890,000,000 (Previous Year 4,890,000,000) Equity Shares of 10 each
3,110,000,000 (Previous Year 3,110,000,000) Preference Shares of 10 each
Total
ISSUED, SUBSCRIBED AND FULLY PAID-UP
4,889,846,200 (Previous Year 4,889,846,200) Equity Shares of 10 each.
850,000,000 (Previous Year 1,456,970,000) 7 % Non-Cumulative redeemable Preference
Shares of 10 each redeemable at par, as under
550,000,000 during 2014-15
300,000,000 during 2015-16
Total
01.01 : Statement of Reconciliation of Issued, Subscribed and Fully paid-up Share capital
7% Non-Cumulative Redeemable
Preference Shares
Equity Shares
Particulars
Number
Shares outstanding as at the beginning
of the year
Face Value( )
Crs
Number
Face Value( )
Crs
4,889,846,200
(48,898,462)
10
(1000)
4889.85
(4889.85)
1,456,970,000
(28,374,700)
10
(1000)
1456.97
(2837.47)
(4,889,846,200)
(10)
(4889.85)
(1,652,470,000)
(10)
(1652.47)
(11,850,000)
(1000)
(1185.00)
(48,898,462)
(1000)
(4889.85)
(16,524,700)
(1000)
(1652.47)
606,970,000
(195,500,000)
10
(10)
606.97
(195.50)
4,889,846,200
10
4889.85
850,000,000
10
850.00
(4,889,846,200)
(10)
(4,889.85)
(1,456,970,000)
(10)
(1456.97)
Equity
President of India
Preference
President of India
78
% of Shares held
100%
(100%)
100%
(100%)
No of Shares Held
4,889,846,200
(4,889,846,200)
850,000,000
(1,456,970,000)
Crs
As at
31st March, 2013
As at
31st March, 2014
Particulars
Capital Redemption Reserve
Amount as per last Balance Sheet
Add: Amount transferred during the year
1480.50
606.97
2087.47
100.00
1380.50
1480.50
Other Reserves
Reserve for Redeeming Preference Share Capital
Amount as per last Balance Sheet
Less: Transfer to Capital Redemption Reserve
1456.97
606.97
850.00
2837.47
1380.50
1456.97
5.45
0.56
6.01
4.01
1.44
5.45
2990.49
3187.58
378.23
352.83
2.91
0.47
0.02
356.23
108.40
82.88
53.69
13.45
9.12
159.14
Tot
al
otal
3457.41
3187.58
6130.50
6400.89
* The fund has been created out of Award conferred by the Prime Minister of India as best Integrated Steel Plant in India and the
earnings from the fund are utilised for the purposes intended for.
02.01: Proposed Dividend and Dividend per Share
Particulars
2012-13
2013-14
Preference Dividend
Interim Dividend
Proposed Dividend (Final)
Number of Preference Shares
Dividend per share
Crs
Crs
No.of shares
55.00
1.00
Equity Dividend
Interim Dividend
Proposed Dividend (Final)
Number of Equity Shares
Dividend per share
Crs
Crs
No.of shares
3.00
33.65
56.00
800,000,000
0.70
36.65
4,889,846,200
0.07
72.85
28.44
10.03
25.25
101.29
1,421,970,000
0.71
35.28
4,889,846,200
0.07
79
Crs
As at
31st March, 2013
1203.53
1241.56
1203.53
1241.56
0.00
0.00
0.00
0.00
As at
31st March, 204
Crs
As at
31st March, 2013
(A)
479.92
479.92
280.75
280.75
(B)
0.00
30.21
30.70
60.91
2.03
28.86
20.65
51.54
(A) - (B)
419.01
229.21
As at
31st March, 2014
Crs
As at
31st March, 2013
0.00
12.14
81.17
84.39
165.56
64.25
28.61
105.00
As at
31st March, 2014
Crs
As at
31st March, 2013
118.06
201.64
163.36
35.76
9.52
107.79
163.55
102.80
36.74
0.93
3.09
531.43
2.96
414.77
Particulars
Term Loans
From Banks
Secured Loans
(Secured by hypothecation of Fixed Assets)
06.01 : Disclosures of Provisions required by Accounting Standard (AS) 29 Provisions, Contingent Liabilities and Contingent Assets :
Particulars
Provision for Mines Closure Expenditure
80
Opening Balance
as at 01.04.2013
Additions during
the year
Utilised during
the year
Closing Balance
as at 31.03.2014
2.96
0.13
0.00
3.09
Crs
Crs
As at
31st March, 2013
As at
31st March, 2014
586.22
589.44
229.63
487.31
2433.55
3150.49
203.80
0.00
2520.84
2724.64
0.00
347.58
3739.93
3658.44
0.00
0.00
0.00
0.00
Total
Crs
As at
31st March, 2013
MSME
Others
60.32
769.61
54.73
683.21
Total
829.93
737.94
Particulars
08.01 : Information relating to Supplier under the provisions of Micro,Small and Medium Enterprise Development Act, 2006.
Particulars
i)
ii)
iii)
iv)
v)
As at
31st March, 2014
The amounts due thereon remaining unpaid to any supplier as at the end of the year
Principal
Nil
Interest
Nil
Payments made beyond the appointed day and interest thereon during the year
Nil
The amount of interest due and payable for the period of delay in making payments
Nil
but with out adding the interest.
The amount of interest accrued and remaining unpaid at the end of the year
Nil
The amount of further interest remaining due and payable in the succeeding
year until the date such interest is actually paid
Not Applicable
Crs
As at
31st March, 2013
Nil
Nil
Nil
Nil
Nil
Not Applicable
81
Crs
As at
31st March, 2013
As at
31st March, 2014
4.49
0.79
98.00
18.14
25.21
2.85
1.92
644.98
2621.18
1571.61
5.28
133.35
0.18
361.35
146.12
4837.77
5484.05
6.12
0.00
183.64
12.36
17.18
1.44
8.34
746.09
2604.02
1548.04
6.12
183.85
0.14
303.97
222.96
4898.15
5615.19
09.01 : Other Payables include net liability of 594.69 Crs (Previous Year 438.63 Crs) towards provision on account of pay revision
effective from 01.01.2007 in respect of Executive employees and w.e.f 01.01.2012 in respect of Non-Executive employees
pending finalisation of wage revision.
Note 10.00 : Short-term Provisions
Particulars
Provision for Employee Benefits
Gratuity to employees
Others
Current Income Tax
Wealth Tax
Proposed Dividend (Final)
Tax on proposed Dividend (Final)
Total
82
As at
31st March, 2014
Crs
As at
31st March, 2013
0.00
5.98
116.76
0.35
34.65
5.89
157.65
103.98
0.32
53.69
9.12
173.10
Crs
Gross Block
Particulars
A.TANGIBLE ASSETS
Land
- Freehold (Including cost of development)
- Leasehold
Railway Lines & sidings
Roads, Bridges & Culverts
Buildings
Plant & Equipments
Furniture & Fixtures
Locomotives
Vehicles
Electrical Installations
Water Supply & Sewerage systems
Miscellaneous Assets
Total (A)
Figures for the previous year
Sales &
adjustments
As at 31st
March, 2014
55.80
1.65
60.29
161.24
1224.38
9671.44
23.76
138.84
13.16
642.11
424.66
157.45
12574.78
10380.49
(-) 0.03
22.53
31.91
16.16
801.00
1.79
1.58
3.74
65.14
86.27
6.49
1036.58
2205.38
7.33
0.08
0.01
1.96
9.38
11.09
55.77
1.65
82.82
193.15
1240.54
10465.11
25.47
140.42
16.90
707.24
510.93
161.98
13601.98
12574.78
B. INTANGIBLE ASSETS
Computer software
Mining rights
Total (B)
Figures for the previous year
7.73
5.83
13.56
13.38
0.74
0.74
0.18
0.09
0.09
0.00
8.38
5.83
14.21
13.56
TOTAL (A+B)
Figures for the previous year
12588.34
10393.87
1037.32
2205.56
9.47
11.09
13616.19
12588.34
Crs
Depreciation
Particulars
Net Block
As at 1st
April, 2013
Sales &
adjustments
As at 31st
March, 2014
As at 31st
March, 2014
As at 31st
March, 2013
A. TANGIBLE ASSETS
Land
- Freehold (Including cost of development)
- Leasehold
0.70
Railway Lines & sidings
48.30
Roads, Bridges & Culverts
32.92
Buildings
603.87
Plant & Equipments
7336.18
Furniture & Fixtures
15.15
Locomotives
72.55
Vehicles
10.93
Electrical Installations
305.56
Water Supply & Sewerage systems
254.97
Miscellaneous Assets
106.58
0.03
1.52
3.11
35.97
201.88
0.98
4.20
1.04
21.68
11.65
11.34
7.30
0.04
0.00
1.81
0.73
49.82
36.03
639.84
7530.76
16.09
76.75
11.97
327.23
266.62
116.10
55.77
0.92
33.00
157.12
600.70
2934.35
9.38
63.67
4.93
380.01
244.31
45.88
8787.70
293.40
8596.83
201.70
9.16
10.83
8787.70
4530.03
3787.07
55.80
0.95
11.99
128.32
620.51
2335.26
8.62
66.29
2.23
336.55
169.69
50.87
3787.07
1783.65
7.05
3.77
0.44
0.29
0.09
7.40
4.06
0.98
1.77
10.82
10.19
0.73
0.09
0.63
11.46
10.82
2.75
2.74
TOTAL (A+B)
8798.52
294.13
9.25
9083.40
4532.78
8607.02
202.33
10.83
8798.52
3789.81
Total (A)
Figures for the previous year
B. INTANGIBLE ASSETS
Computer software
Mining rights
Total (B)
Figures for the previous year
9071.94
0.68
2.06
2.74
3.19
3789.81
1786.84
83
Crs
As at
31st March, 2013
As at
31st March, 2014
Particulars
Current year
Prior periods
Total
11.02: Allocation of Depreciation not included above and charged to:
Expenditure During Construction
271.48
0.00
271.48
186.88
(0.80)
186.08
22.65
16.25
11.03: Land at a cost of 39.99 Crs (Previous year 39.99 Crs) is being held in the name of President of India. The Company is holding
Power of Attorney issued by Govt. of India for utilisation of the land acquired for the Project and related purposes incidental
thereto.
11.04: Land includes 367.07 acres (Previous year 367.07 acres) allotted to various agencies on lease basis.
11.05: Land includes 12.5 acres ( 0.03 Crs) whose title is under dispute.
11.06: Sale deeds in respect of the following assets are yet to be executed:
a) Stockyard at Chennai
b) i) Office building at New Delhi
ii) Office building at New Delhi
c) Office buildings at Ahmedabad
d) Residential buildings at Kolkata
e) i) Stockyard at Hyderabad
ii) Site for Liaison Office
2.37 Crs)
1.09 Crs)
24.44 Crs)
0.18 Crs)
0.95 Crs)
1.00 Crs)
1.30 Crs)
11.07: Fixed Assets include 1.02 Cr (Debit) [ Previous year 0.14 Cr (Debit) ] representing Net Exchange Rate Variation for the year
in respect of foreign currency liabilities with regard to acquisition of fixed assets prior to 1st April 2004.
11.08:Capital expenditure common to more than one asset are capitalised on the basis of consultants/engineers estimates.
11.09:Main plant units, including Mills, constitute Continuous process plant.
Note 12.00 : Capital Work-In-Progress
Particulars
Work-in-Progress (Including Material issued to contractors)
Coke Oven Battery-4
242.93
6.3 MT Expansion
8731.18
Others
1234.63
Less: Provision for dropped SLTM Project
Expenditure during construction awaiting allocation (Note : 12.01)
Total
84
Crs
As at
31st March, 2013
As at
31st March, 2014
208.40
8668.44
703.63
10208.74
18.27
10190.47
9580.47
18.27
9562.20
479.00
403.04
10669.47
9965.24
As at
31st March, 2014
Crs
As at
31st March, 2013
403.04
354.24
(A)
44.06
42.66
4.73
22.65
Less :
Interest Receipts
Other Revenue
0.04
(5.82)
114.10
38.59
45.74
3.73
16.25
104.31
(5.78)
0.00
(0.53)
(0.53)
(B)
119.88
104.84
(A+B)
522.92
459.08
43.92
56.04
479.00
403.04
Particulars
Traded
Investment In Equity Instruments
Quoted (A)
Subsidiary
Eastern Investments Ltd
Others
Bisra Stone Lime Company Ltd *
As at
31st March,2014
736638
(736638)
10
361.02
361.02
182927
(182927)
10
0.00
0.00
361.02 @
361.02
Total (A)
Unquoted (B)
Joint Ventures
Rinmoil Ferro Alloys Private Limited
International Coal Ventures Pvt. Ltd
Others #
Free Press House Limited $
Crs
As at
31st March, 2013
100000
(100000)
10
0.10
1400000
(1400000)
10
1.40
2280
(2280)
0.00
0
(50000)
10
0.00
Total (B)
Total (A+B)
0.10
1.50
1.40
1.50
0.00
0.00
0.05
0.05
1.50
1.55
362.53
362.58
Percentage of Companys
ownership interest
Assets
Liabilities Income
Expenditure Contingent
Liabilities
Capital
Commitments
1. RINMOIL Ferro
Alloys Pvt Ltd
50.00
51.55
2. International Coal
Ventures Pvt Ltd
14.29
500.00
(*) The accounts of the respective joint ventures for the Financial Year 2013-14 are not yet prepared.
Note 14.00 : Long-term Loans and Advances
Particulars
Capital advances
Advances & other recoverables
(Recoverable in cash or in kind or for value to be received)
Government departments
4.52
Less:Provision for doubtful advances
0.00
Contractors
Less:Provision for doubtful advances
Security Deposits
Loans and Advances to Related parties
Directors
Joint venture Companies
Other Loans and Advances
Loans
Employees
Others
Advances
MAT Credit Entitlement
Others
37.99
0.00
4.52
37.99
9.89
29.31
0.00
29.31
39.20
28.44
0.00
4.36
4.36
0.00
4.36
4.36
52.60
249.47
302.07
48.27
280.64
328.91
220.71
0.61
221.32
96.88
0.57
616.05
0.00
42.51
0.00
45.79
0.00
0.00
0.00
4.36
0.00
0.00
523.39
0.00
97.45
498.36
42.51
0.00
39.20
0.00
39.20
45.79
28.44
0.00
0.00
28.44
4.36
0.00
4.36
0.00
4.36
523.39
0.00
426.36
0.00
616.05
426.36
498.36
0.00
0.00
4.36
4.36
Total
86
42.51
9.89
0.00
45.79
Total
14.01 Particulars of Long-term Loans & Advances
Capital Advances
Secured & Considered good
Unsecured & Considered good
Doubtful
Security Deposits
Secured & Considered good
Unsecured & Considered good
Doubtful
Loans and Advances to Related parties
Secured & Considered good
Unsecured & Considered good
Doubtful
Other Loans and Advances
Secured & Considered good
Unsecured & Considered good
Doubtful
Crs
As at
31st March, 2013
As at
31st March, 2014
Crs
As at
31st March, 2013
As at
31st March, 2014
14.63
45.60
Total
60.23
12.58
24.00
36.58
As at
31st March, 2014
2057.42
7.63
Raw materials
Add: In-transit/ Under inspection
1277.26
362.11
1639.37
328.06
488.10
34.29
522.39
35.71
Crs
As at
31st March, 2013
2065.05
2078.74
4.96
2083.70
1311.31
1169.53
306.45
1475.98
192.63
1283.35
486.68
463.73
30.32
494.05
32.50
3863.04
461.55
3828.60
16.01 : Quantities of Closing Stock of finished / semi-finished goods have been adopted as per book balances after duly adjusting for
shortages/ excesses identified on physical verification at anytime during the year.
16.02: In line with industry practice, no credit is taken for the value of material in process except those lying at mills.
16.03: No credit is taken in the accounts for the stock of run of mines ore and rejects at Mines.
16.04: Since the Coke Breeze is used for internal consumption, the same has been valued at 60% of the production cost of BF coke.
16.05: Coke and other By products are valued at net realisable value, wherever cost is not determinable and at cost, where net
realisable value is not available, except in the case of Stock of BF Granulated slag at dump yard for which no value is assigned.
16.06: The stock of production related iron scrap and steel scrap has been considered in the accounts on the basis of visual survey
/ estimates and are valued al 75 % and 90 % respectively, at lower of the cost of Pig Iron and of the domestic net realisable
value of Pig Iron.
87
Total
803.65
33.98
995.98
1029.96
20.31
1009.65
0.00
803.65
20.32
0.00
1009.65
20.31
0.00
0.00
17.03 : Debts due by Private Companies in which Director of the company is a Director
0.00
0.00
20.87
803.10
823.97
20.32
88
Crs
As at
31st March, 2013
As at
31st March, 2014
As at
31st March, 2014
4.65
71.73
0.05
0.20
1542.94
55.48
111.19
0.03
0.00
3.18
6.01
Crs
As at
31st March, 2013
175.89
175.89
5.45
1625.02
1625.02
Crs
As at
31st March, 2013
As at
31st March, 2014
Particulars
Loans and Advances to Related Parties
Directors
Joint venture Companies
Loans and Advances to Others
Loans
Material issued on loan
Advances & other recoverables
(Recoverable in cash or in kind or for value to be received)
Government departments
8.29
Less:Provision for doubtful advances
0.62
0.00
1.64
0.00
1.39
1.64
0.12
0.38
7.67
9.69
0.62
9.07
Contractors
Less:Provision for doubtful advances
72.02
5.16
66.86
34.42
4.38
30.04
Suppliers
Less:Provision for doubtful advances
51.61
8.98
42.63
33.10
7.88
25.22
Employees
Less:Provision for doubtful advances
7.41
0.16
7.25
10.09
0.16
9.93
3080.65
2533.11
546.17
33.99
3045.29
2437.30
679.15
35.80
105.00
Prepaid expenses
3310.06
143.60
52.68
17.83
Deposits
Total
19.01: Particulars of Loans & Advances
Loans and Advances to Related parties
Secured & Considered good
Unsecured & Considered good
Doubtful
Loans and Advances to Others
Secured & Considered good
Unsecured & Considered good
Doubtful
0.00
1.64
0.00
0.00
3459.71
68.55
34.85
3263.15
2.39
6.85
Claims recoverable
Less: Provision for doubtful claims
1.39
53.46
17.23
36.23
107.57
114.47
3461.35
3417.75
1.64
0.00
1.39
0.00
3528.26
0.00
3416.36
64.26
1.39
3529.90
3480.62
3482.01
0.00
0.00
1.64
1.39
Total
89
Crs
As at
31st March, 2013
As at
31st March, 2014
16.36
24.00
11.95
0.04
6.67
6.55
Total
20.01 : Loans due by Directors
14.91
24.00
40.36
1.25
17.81
0.34
11.91
5.66
5.53
Sale of Products
Domestic
12751.31
Export
738.15
Less: Sale of Trial Run Production (Transferred to CWIP)
Other Operating Revenues
Internal consumption
Export benefits
96.73
0.00
0.0039
Total
Crs
Year ended
31st March, 2013
Year ended
31st March, 2014
13489.46
125.29
17.47
0.13
39.21
96.73
0.12
43.09
38.91
1.01
12954.86
598.07
13364.17
56.09
11.22
13431.48
13552.93
89.83
13463.10
80.39
21.79
13565.28
21.01 : As per section 441A of the Companies Act 1956, cess on turnover is leviable. Government of India has not yet framed any rules
/ guidelines in this regard and hence no amount has been provided and / or paid.
90
Quantity in Tonnes *
Value in Crs
Blooms
Particulars
Opening stock
Quantity
Value
Sales
Quantity
Value
Closing stock
Quantity
Value
Saleable
Sundries *
Steel
Coke & Coke
Others
Products
Total
9654
(4667)
24.53
(12.40)
65050
(55773)
206.12
(174.52)
175565
(84517)
622.51
(304.68)
722879
(686698)
999.63
(1062.92)
269696
(274288)
230.91
(225.43)
2083.70
(1779.96)
283945
(454104)
681.10
(1092.89)
118607
(130906)
357.72
(425.33)
2868155
(2670542)
11606.27
(11409.27)
249415
(178871)
277.16
(208.48)
1731079
(1406112)
441.92
(327.13)
13364.17
(13463.10)
46913
(9654)
119.14
(24.53)
77564
(65050)
227.11
(206.12)
145367
(175565)
479.48
(622.51)
705548
(722879)
984.62
(999.63)
349812
(269696)
254.70
(230.91)
2065.05
(2083.70)
(*) Quantity for Argon Gas, Oxygen Gas and Nitrogen Gas is in Thcum.
Note: (i) Figures in brackets are for previous year.
(ii) Closing stock includes 19721.77 tonnes of value 72.51 Crs (Previous year 17202.93 tonnes of value 64.88 Crs.) in the
custody of Consignment / Handling Agents.
(iii) Figures of closing stock are after adjustment for internal consumption, transfers to capital works, shortages / excesses.
(iv) Others include By-products and Iron & Steel Scrap.
Note 22.00 : Other Income
Particulars
Interest Income
Banks
Loans to employees
Others
Dividend Income
Other Non-Operating Income
Claims for finished goods (Shortages & Missing Wagons)
Rent recoveries
Liquidated damages
Profit on sale of fixed assets
Other Income
Provision no longer required written back
Sundry receipts*
Total
Year ended
31st March, 2014
120.01
3.79
56.25
0.83
7.80
16.79
0.56
1.71
1.03
98.11
180.05
0.11
126.83
306.99
* Consequent to opinion of ICAI on advances paid for Assets not owned by an Enterprise, an amount of
which was previously charged to Statement of Profit and Loss.
Crs
Year ended
31st March, 2013
151.26
3.97
78.10
0.86
7.11
17.46
0.45
1.02
12.34
182.72
233.33
0.13
221.96
455.42
91
Quantity: Tonnes
Value: Crs
Raw Materials
Coal
Iron Ore
Limestone
Dolomite
Silico Manganese
Ferro Silicon
Aluminium
Manganese Ore
Petroleum Coke
Sea Water Magnesite
Billets
Others
Quantity
Value
3967493
5724941
975567
603606
53589
4840
4612
15978
6028
2729
0
3708.08
2777.27
142.24
98.17
288.58
36.51
59.68
2.72
15.29
13.21
0.00
14.47
7156.23
4346.08
3161.71
139.87
84.88
278.00
33.80
44.11
2.45
15.12
8.38
50.65
9.01
8174.07
Intermediate Products
178.16
1242.48
308.57
7025.82
1317.89
8098.66
Crs
Crs
Indigenous
Imported
3575.19
3581.04
49.96
50.04
Total
7156.23
100.00
4008.68
4165.39
8174.07
49.04
50.96
100.00
Year ended
31st March, 2014
2083.70
2065.05
18.65
Year ended
31st March, 2014
1779.96
2083.70
(303.74)
Crs
Year ended
31st March, 2013
1483.10
94.72
173.28
1269.37
104.41
95.29
Total
1751.10
1469.07
25.01: Expenditure on Employee benefits not included above and charged to:
Particulars
92
Crs
Year ended
31st March, 2013
Year ended
31st March, 2014
119.28
8.16
14.08
Total
141.52
Crs
Year ended
31st March, 2013
100.77
8.58
8.31
117.66
Gratuity
Employee Family Benefit Scheme - Monthly payments, till the notional date of superannuation, to employees
separated upon disablement / legal heirs of deceased employees at their option
who fulfill the criteria of prescribed amount of deposit.
25.02.03: Reconciliation of present value of defined benefit obligations:
Particulars
Obligation as at the beginning of the period
Service Cost
Interest Cost
Actuarial gains (-) / losses (+)
Benefits paid
Obligations as at the end of the period
Gratuity
677.22
(629.89)
12.78
(19.00)
60.63
(49.59)
-28.31
(-1.27)
-21.82
(-20.00)
700.50
(677.22)
Crs
Retirement
Medical
Benefits
Retirement
Settlement
Benefits
150.23
(145.63)
6.99
(5.48)
11.98
(11.44)
23.32
(-7.08)
-0.93
(-5.24)
191.59
(150.23)
50.98
(44.06)
1.86
(1.77)
4.00
(3.46)
-2.10
(3.20)
-1.89
(-1.53)
52.85
(50.98)
Employee
Family Benefit
Scheme
119.97
(97.83)
26.72
(17.00)
8.80
(7.17)
52.94
(14.43)
-19.87
(-16.46)
188.56
(119.97)
Crs
Gratuity
2013-14
671.24
59.70
2.29
5.99
(21.82)
717.40
2012-13
630.39
55.90
3.47
1.47
(20.00)
671.24
93
25.02.06: Reconciliation of Present Value of Defined Benefit Obligation and Fair value of Plan Assets:
Crs
Particulars
Gratuity
2013-14
717.40
700.50
(16.90)
2012-13
671.24
677.22
5.98
Crs
Retirement
Retirement
Employee Family
Medical Benefits Settlement Benefits Benefit Scheme
Gratuity
Service Cost
Interest Cost
Actuarial gains (-) / losses (+)
Expected Return on Plan Assets
Accounting Estimate Change on Opening obligation
Total to be charged - Employees Benefits
12.78
(19.00)
60.63
(49.59)
-30.60
(-4.73)
-59.70
(-55.90)
0.00
(0.00)
-16.89
(7.96)
7.00
(5.49)
11.98
(11.44)
23.32
(-7.08)
0.00
(0.00)
0.00
(0.00)
42.30
(9.85)
1.86
(1.77)
4.00
(3.46)
-2.10
(3.20)
0.00
(0.00)
0.00
(0.00)
3.76
(8.44)
26.72
(17.00)
8.80
(7.17)
52.94
(14.43)
0.00
(0.00)
0.00
(0.00)
88.46
(38.60)
-15.64
(7.37)
-0.18
(0.17)
-1.03
(0.40)
-0.04
(0.02)
39.18
(9.13)
0.64
(0.20)
2.39
(0.50)
0.09
(0.02)
3.49
(7.82)
0.05
(0.17)
0.21
(0.43)
0.01
(0.02)
81.93
(35.77)
1.34
(0.79)
5.01
(1.96)
0.18
(0.08)
Amount charged to :
Statement of Profit & Loss (Note -B 25.00)
Expenditure During Construction
Capital Work in Progress
Intangible Assets under Development
Sub Note: Figures in the brackets are for previous year.
25.02.08: Effect of one percentage point change in the assumed inflation rate in case of valuation of benefits under post retirement
medical benefit scheme:
Crs
Effect of one percentage point
Effect of one percentage point
increase in medical cost trend rate decrease in medical cost trend rate
Particulars
2013-14
2012-13
2013-14
2012-13
3.76
4.54
(3.23)
(3.52)
32.28
37.22
(28.30)
(28.82)
9.1%
Indian Assured lives (2006-08) Ultimate Table
Upto 30 years of age 3%; Upto 44 years of age
2%; Above 44 years of age 1%
8%
Indian Assured lives (2006-08) Ultimate Table
Upto 30 years of age 3%; Upto 44 years of age
2%; Above 44 years of age 1%.
94
9%
9%
4.5% of Hospital Cost and Medi-claim Premium
4.5% of Hospital Cost and Medi-claim Premium
7%
7%
The estimate of future salary increase considered in actuarial valuation takes into account inflation
rate, seniority,industrial practices, promotion and other relevant factors on long term basis.
25.02.10: Provident Fund : Companys contribution paid/payable during the year to Provident Funds are recognised in the Statement
of Profit & Loss. The companys Provident Fund Trusts are exempted under section 17 of the Emplyees Provident Fund and
Miscellanceous Provisions Act, 1952. The conditions for grant of exemption stipulated that the employer shall make good,
deficiency if any, in the interest rate declared by the Trusts vis-a-vis statutory rate. The Company doesnot anticipate any
further obligations in the near forseeable future having regard to the assets of the funds and return on investment.
Note 26.00 : Finance Costs
Crs
Year ended
31st March, 2014
Year ended
31st March, 2013
Interest :
Foreign currency facilities
Bank Loans & Commercial papers
Income Tax
Others
Other Borrowing costs
Loss/(Gain) on Foreign currency transactions and translation
204.43
129.74
0.79
0.75
2.49
(0.08)
133.67
217.79
0.00
2.90
4.83
0.06
Total
338.12
359.25
26.01: Expenditure on Finance Costs not included above and charged to:
Capital Work in Progress / Expenditure During Construction
Interest - Banks
164.25
56.71
Particulars
Note No:
Crs
Year ended
31st March, 2013
Year ended
31st March, 2014
529.88
630.95
204.43
0.26
282.75
1.92
32.22
9.28
132.91
415.09
556.98
671.34
236.49
0.32
236.45
2.13
32.94
9.31
144.84
501.28
4.42
3.83
0.00
0.00
0.00
0.03
0.00
8.25
0.03
41.09
2441.45
2.82
1.65
0.01
0.54
0.30
0.04
0.00
5.32
0.04
51.70
2296.75
95
27.01: Expenditure on Other expenses not included above and charged to:
Year ended
31st March, 2014
Crs
Year ended
31st March, 2013
11.38
0.56
13.73
6.36
0.02
0.22
11.89
1.59
0.02
0.06
26.42
0.05
14.58
2.05
0.02
0.22
3.19
1.90
0.05
0.05
Total
45.83
48.53
Particulars
Year ended
31st March, 2014
Crs
Indigenous
Imported
506.67
50.31
90.97
9.03
Total
556.98
100.00
Year ended
31st March, 2013
Crs
%
483.13
91.18
46.75
8.82
529.88
100.00
Year ended
31st March, 2014
Crs
Year ended
31st March, 2013
Purchased power
Coal
Furnace oil/ LSHS/ LDO
273.86
381.42
16.06
286.93
342.47
1.55
Total
671.34
630.95
Particulars
27.03.01 : Cost of Power and fuel does not include the cost of generation of power and production of certain fuel elements in the Plant
which are internally consumed. The related expenses have been included under the primary heads of account.
27.04 : Repairs and Maintenance
Year ended
31st March, 2014
Crs
Year ended
31st March, 2013
114.37
56.60
65.52
99.60
39.92
64.91
Total
236.49
204.43
Particulars
96
Crs
Year ended
31st March, 2014
Year ended
31st March, 2013
As Auditor
For taxation matters
Other Services
For reimbursement of expenses
0.10
0.02
0.00
0.20
Total
0.32
0.10
0.02
0.01
0.13
0.26
Particulars
Crs
Year ended
31st March, 2014
Year ended
31st March, 2013
6.79
70.88
2.40
3.59
39.31
1.26
0.88
6.57
5.89
74.93
2.47
3.50
38.17
1.11
1.47
0.33
4.12
4.75
8.87
41.61
2.01
10.44
1.67
0.21
22.43
29.12
(11.59)
236.45
4.44
1.04
5.48
35.31
2.40
14.27
17.05
0.09
17.22
15.17
47.89
282.75
27.06.01 : Excise Duty of 11.59 Crs (Credit) [Previous year 47.89 Crs (Debit)] disclosed in miscellaneous expenses comprise of
Excise Duty component on stock at branches, Goods in transit and shortage at branches, Accretion / Reduction of Inventories
of Semi / Finished Goods and By products at Plant.
Note 28.00 : Prior period items
Crs
Year ended
31st March, 2014
Year ended
31st March, 2013
Sale of products
Other Revenue
Raw Materials
Stores and spares
Other Expenses
Depreciation
Internal Consumption
0.00
(0.31)
0.00
0.00
(1.57)
0.00
0.00
(0.09)
(4.38)
(2.97)
(0.09)
(4.96)
(0.80)
(1.77)
Total
(1.88)
(15.06)
Particulars
97
2013 - 2014
Crs
2012 - 2013
366.45
65.52
300.93
4889846200
10
0.62
352.83
117.94
234.89
4889846200
10
0.48
Note 30.00 : Contingent Liabilities and Commitments (to the extent not provided for)
30.01 : Contingent Liabilities
30.01.01: Claims against the company not acknowledged as debt
Particulars
Contractors / Suppliers / Customers
Local Authorities - State Govt.
Sales Tax matters *
Income Tax
Customs / Excise duty
R & D Cess
Others
Crs
st
As at 31
March, 2014
As at 31st
March, 2013
775.55
176.82
1768.83
207.14
218.72
3.38
408.43
585.25
152.89
1633.24
195.52
200.86
3.38
401.42
(*) No liability is expected to arise as the movement of goods were on stock transfer and Sales Tax is paid on eventual sales.
30.01.02
30.01.03
: Liability towards reimbursement of excise duty on structural works wherever applicable. - Amount not ascertainable.
30.01.04
: Show cause notices issued by various Government Authorities are not considered as contingent liabilities.
30.02
: Commitments
Estimated amount of contracts remaining to be executed on capital account and not provided for 6524.27 Crs
(Previous Year 4992.12 Crs).
98
31.01
: For a substantial portion of Loans and Advances, Trade payables/ Trade receivables / Other payables, letters seeking
confirmation of balances were sent and no material discrepancies were found in respect of balances confirmed.
31.02
31.02.01
2013-14
18.38
20.88
1.03
Crs
2012-13
5.09
22.54
14.83
31.02.02
2013-14
737.71
3.74
Crs
2012-13
597.79
1.13
Crs
2012-13
3961.18
89.02
134.78
2013-14
3767.65
87.63
131.94
The details of transactions between the Company and the related parties during the year are given below
Joint Venture
Nature of Transaction
Investments
Long-term Loans and Advances
Short-term loans and advances
Interest Accrued
Current maturity of Long-term Loans
and advances
st
As at 31
March 2014
As at 31
March 2013
As at 31
March 2014
Note No:
st
As at 31
March 2013
1.50
4.36
1.64
0.00
1.50
4.36
1.39
0.00
0.00
0.00
0.00
0.00
0.00
0.0039
B 13.00
B 14.00
B 19.00
B 20.00
0.00
0.00
0.00
0.00
B 20.00
st
0.00
0.00
0.00
2012-13
0.00
1.24
0.00
2013-14
1.41
0.00
0.01
2012-13
1.32
0.00
0.03
B 25.00
B 22.00
B 27.06
31.04 : The Companys business is construed as one business segment which comprises of mainly production of Steel products,
whose associated risks and returns are predominantly the same. Further, the Company has no geographical segments which
are subject to different risks and returns. Hence no separate disclosure in terms of Accounting Standard (AS) 17 on Segment
Reporting is considered necessary.
31.05 : Since the Lease transactions of the Company, are incidental to the Companys main business of production & sale of Iron & Steel
products, specific disclosures as per AS - 19 on Leases, are not considered necessary.
31.06 : The entire plant is considered as a Cash Generating Unit. As Recoverable amount of the Cash Generating Unit, being its value
in use, is in excess of its carrying amount, there is no impairment loss in terms of the AS 28 - Impairment of assets.
31.07 : Previous years figures have been rearranged / regrouped wherever necessary to conform to current years classification.
99
N O T I C E
NOTICE is hereby given to all the Shareholders of Rashtriya Ispat Nigam Limited that the 32ndAnnual
General Meeting of the Company will be held at 15.00hrs on Monday, the 29th September, 2014 at
the Registered Office of the Company at Administrative Building, Visakhapatnam Steel Plant,
Visakhapatnam 530 031, to transact the following business :
ORDINARY BUSINESS:
1. To receive, consider and adopt the audited financial statements of the Company for the year
ended March 31, 2014, the reports of the Board of Directors and Auditors thereon.
2. To confirm payment of interim dividend already paid and to declare final dividend for the financial
year 2013-14.
3. To appoint a Director in place of Shri Ashhok Kumar Jain (DIN: 0598647) who retires by Rotation
and being eligible offers himself for re-appointment.
4. To appoint a Director in place of Prof. Sushil (DIN: 05300091) retires by Rotation and being
eligible offers himself for reappointment.
5. To appoint a Director in place of Prof. S.K.Garg (DIN: 06416704) who retires by Rotation and
being eligible offers himself for reappointment.
6. To fix the Remuneration of the Statutory Auditors
It is proposed that the Members may consider and if thought fit, to pass with or without
modification the following Resolution as an Ordinary Resolution.
RESOLVED THAT the Board of Directors of the Company be and are hereby authorized to fix the
Auditors Remuneration, out of pocket expenses, Travelling expenses and other living expenses
appropriately for the Statutory Auditors, who will be appointed by the C&AG with the
recommendations of Audit Committee from time to time.
FURTHER RESOLVED THAT the Board of Directors be and are hereby further authorized to fix
the payment for any other services rendered by the Statutory Auditors so appointed, with the
recommendations of Audit Committee from time to time.
100
SPECIAL BUSINESS
Appointment of Directors
7. To appoint Dr Sheela Bhide (DIN: 1843547) as Director of the Company and in this regard to
consider and if thought fit, to pass with or without modification(s), the following Resolution as
an Ordinary Resolution.
RESOLVED THAT pursuant to the provisions of Section 149, 152 and other applicable provisions,
if any, of the Companies Act, 2013 and rules made thereunder, Dr Sheela Bhide (DIN: 1843547)
who was appointed as part time non-official director (i.e. Independent Director) by the President
of India pursuant to powers vested under the Article No.75 of Articles of Association of RINL
and assumed charge on 24th February, 2014, be and is hereby appointed as a Director of the
Company, liable to retire by Rotation.
8. To appoint Lt. Gen (Retd) Arvind Mahajan (DIN: 02410540) as Director of the Company and in
this regard to consider and if thought fit, to pass with or without modification(s), the following
Resolution as an Ordinary Resolution.
RESOLVED THAT pursuant to the provisions of Section 149, 152 and other applicable provisions,
if any, of the Companies Act, 2013 and rules made thereunder, Lt. Gen (Retd) Arvind Mahajan
(DIN: 02410540) who was appointed as part time non-official director (i.e. Independent Director)
by the President of India pursuant to powers vested under the Article No.75 of Articles of
Association of RINL and assumed charge on 24th February, 2014, be and is hereby appointed as
a Director of the Company, liable to retire by Rotation.
9. To appoint Shri Ajay Kumar Goyal (DIN: 02726120) as Director of the Company and in this regard
to consider and if thought fit, to pass with or without modification(s), the following Resolution
as an Ordinary Resolution.
RESOLVED THAT pursuant to the provisions of Section 149, 152 and other applicable provisions,
if any, of the Companies Act, 2013 and rules made thereunder, Shri Ajay Kumar Goyal (DIN:
02726120) who was appointed as part time non-official director (i.e. Independent Director) by
the President of India pursuant to powers vested under the Article No.75 of Articles of Association
of RINL and assumed charge on 24th February, 2014, be and is hereby appointed as a Director of
the Company, liable to retire by Rotation.
10. To appoint Shri Rajib Sekhar Sahoo (DIN: 02708503) as Director of the Company and in this
regard to consider and if thought fit, to pass with or without modification(s), the following
Resolution as an Ordinary Resolution.
RESOLVED THAT pursuant to the provisions of Section 149, 152 and other applicable provisions,
if any, of the Companies Act, 2013 and rules made thereunder, Shri Rajib Sekhar Sahoo (DIN:
02708503) who was appointed as part time non-official director (i.e. Independent Director) by
the President of India pursuant to powers vested under the Article No.75 of Articles of Association
of RINL and assumed charge on 24th February, 2014, be and is hereby appointed as a Director of
the Company, liable to retire by Rotation.
101
11. To appoint Shri P.C.Mohapatra (DIN: 06738364) as Director (Projects) of the Company and in
this regard to consider and if thought fit, to pass with or without modification(s), the following
Resolution as an Ordinary Resolution.
RESOLVED THAT pursuant to the provisions of Section 149, 152 and other applicable provisions,
if any, of the Companies Act, 2013 and Rules made thereunder, Shri P.C.Mohapatra (DIN:
06738364) who was appointed as Director (Projects) by the President of India pursuant to powers
vested under the Article No.75 of Articles of Association of RINL and assumed charge on 01st
November, 2013, be and is hereby appointed as a Director (Projects) of the Company.
12. To appoint Dr.G.B.S.Prasad (DIN: 06886500) as Director (Personnel) of the Company and in this
regard to consider and if thought fit, to pass with or without modification(s), the following
Resolution as an Ordinary Resolution.
RESOLVED THAT pursuant to the provisions of Section 149, 152 and other applicable provisions,
if any, of the Companies Act, 2013 and rules made thereunder, Dr.G.B.S.Prasad (DIN: 06886500)
who was appointed as Director (Personnel) by the President of India pursuant to powers vested
under the Article No.75 of Articles of Association of RINL and assumed charge on 01st May,
2014, be and is hereby appointed as a Director (Personnel) of the Company.
13. To appoint Shri.D.N.Rao (DIN: 06914797) as Director (Operations) of the Company and in this
regard to consider and if thought fit, to pass with or without modification(s), the following
Resolution as an Ordinary Resolution.
RESOLVED THAT pursuant to the provisions of Section 149, 152 and other applicable provisions,
if any, of the Companies Act, 2013, Rules made thereunder, Shri D N Rao (DIN: 06914797) who
was appointed as Director (Operations) by the President of India pursuant to powers vested
under the Article No.75 of Articles of Association of RINL and assumed charge on 1st August,
2014, be and is hereby appointed as a Director (Operations) of the Company.
Cost Auditors Remuneration
14. To ratify the remuneration of the Cost Auditors for the financial year 2014-15 and in this regard
to consider and if thought fit, to pass, with or without modification(s), the following resolution
as an Ordinary Resolution:
RESOLVED THAT pursuant to the provisions of Section 148 and all other applicable provisions
of the Companies Act, 2013 and the Companies (Audit and Auditors) Rules, 2014 (including any
statutory modification(s) or re-enactment thereof), the Cost Auditors appointed by the Board of
Directors of the Company, to conduct the audit of the cost records of the Company for the financial
year 2014-15, be paid the remuneration of 1,55,000/- (One Lakh Fifty Five Thousand only) plus
applicable service tax and other facilities detailed in the Statement annexed to the Notice
convening this Meeting.
RESOLVED FURTHER THAT the Board of Directors of the Company be and is hereby authorised
to do all acts and take all such steps as may be necessary, proper or expedient to give effect to
this resolution.
102
To adopt new set of Articles of Association of the Company containing regulations in conformity
with the Companies Act, 2013 and in this regard to consider and if thought fit, to pass, with or
without modification(s), the following resolution as a Special Resolution:
RESOLVED THAT pursuant to the provisions of Section 14 and all other applicable provisions
of the Companies Act, 2013 read with Companies (Incorporation) Rules, 2014 (including any
statutory modification(s) or re-enactment thereof, for the time being in force), the draft regulations
contained in the Articles of Association of RINL submitted to this meeting be and are hereby
approved and adopted in substitution and to the entire exclusion, of the regulations contained in
the existing Articles of Association of the Company;
RESOLVED FURTHER THAT the Board of Directors of the Company be and is hereby authorized
to do all acts and take all such steps as may be necessary, proper or expedient to give effect to
this resolution.
16. To accord approval for the number of directors on the Board of RINL to be a maximum of
Sixteen directors
RESOLVED THAT pursuant to the provisions of Section 149 and other applicable provisions, if
any, (including modification and re-enactment thereof) of the Companies Act, 2013 and subject
to the Articles of Association of the Company, the consent of the members be and is hereby
accorded for the number of directors on the Board of RINL to be a maximum of Sixteen directors.
RESOLVED FURTHER THAT the Company Secretary of RINL be and is hereby authorized to do
all the acts, deeds and things which are necessary to give effect to the aforesaid resolution.
103
18. To appoint Shri.T.V.S.Krishna Kumar (DIN: 06914774) as Director (Finance) of the Company and
in this regard to consider and if thought fit, to pass with or without modification(s), the following
Resolution as an Ordinary Resolution.
RESOLVED THAT pursuant to the provisions of Section 149, 152 and other applicable provisions,
if any, of the Companies Act, 2013 and Rules made thereunder, Shri.T.V.S. Krishna Kumar (DIN:
06914774) who was appointed as Director (Finance) by the President of India pursuant to powers
vested under the Article No.75 of Articles of Association of RINL and assumed charge on 25th
August, 2014 be and is hereby appointed as Director (Finance) of the Company.
Registered office
Administrative Building
Visakhapatnam Steel Plant
Visakhapatnam 530 031
P Mohan Rao
General Manager (CA) &
Company Secretary
104
ANNEXURE TO NOTICE
EXPLANATORY STATEMENT TO THE SPECIAL BUSINESSES PROPOSED IN THE NOTICE
(Pursuant to Section 102(1) of the Companies Act, 2013)
Item No.7:
Dr.Sheela Bhide was appointed as part-time non official director of RINL by the President
of India vide its letter No.1(4)2013-VSP dated February 20, 2014 issued by Ministry of
Steel (MoS) for a period of three years from the date of notification i.e., February 20, 2014
or until further orders from the MoS, whichever is earlier.
Her brief resume, inter-alia, giving nature of expertise in specific functional area is
provided elsewhere which forms part of this notice.
None of the Directors or Key Managerial Personnel of the Company or their relatives
except Dr.Sheela Bhide is in any way, concerned or interested, financially or otherwise,
in the resolution.
The Board recommends the resolution for the approval of shareholders.
Item No.8:
Lieutenant General (Retired) Arvind Mahajan was appointed as part-time non official
director of RINL by the President of India vide its letter No.1 (4)2013-VSP dated February
20, 2014 issued by Ministry of Steel (MoS) for a period of three years from the date of
notification i.e., February 20, 2014 or until further orders from the MoS, whichever is
earlier.
His brief resume, inter-alia, giving nature of expertise in specific functional area is
provided elsewhere which forms part of this notice.
None of the Directors or Key Managerial Personnel of the Company or their relatives
except Lieutenant General (Retired) Arvind Mahajan is in any way, concerned or interested,
financially or otherwise, in the resolution.
The Board recommends the resolution for the approval of shareholders.
Item No.9:
Mr. Ajay Kumar Goyal was appointed as part-time non official director of RINL by the
President of India vide its letter No.1 (4)2013-VSP dated February 20, 2014 issued by
Ministry of Steel (MoS) for a period of three years from the date of notification i.e., February
20, 2014 or until further orders from the MoS, whichever is earlier.
His brief resume, inter-alia, giving nature of expertise in specific functional area is
provided elsewhere which forms part of this notice.
None of the Directors or Key Managerial Personnel of the Company or their relatives
except Mr. Ajay Kumar Goyal is in any way, concerned or interested, financially or
otherwise, in the resolution.
The Board recommends the resolution for the approval of shareholders.
Item No.10: Mr. Rajib Sekhar Sahoo was appointed as part-time non official director of RINL by the
President of India vide its letter No.1 (4)2013-VSP dated February 20, 2014 issued by
Ministry of Steel (MoS) for a period of three years from the date of notification i.e., February
20, 2014 or until further orders from the MoS, whichever is earlier.
His brief resume, inter-alia, giving nature of expertise in specific functional area is
provided elsewhere which forms part of this notice.
105
None of the Directors or Key Managerial Personnel of the Company or their relatives
except Mr. Rajib Sekhar Sahoo is in any way, concerned or interested, financially or
otherwise, in the resolution.
The Board recommends the resolution for the approval of shareholders.
Item No.11: Mr. P. C. Mohapatra was appointed as Director (Projects) of RINL by the President of
India vide its letter No. 1(8)2012-VSP dated August 16, 2013 issued by Ministry of Steel
(MoS) for a period of five years from the date of assumption of charge of the post, i.e.
November 1, 2013, or till the date of his superannuation or until further orders from the
MoS, whichever is earliest.The terms and conditions regulating his appointment, is as
per the letter No. 1(8)2012-VSP, dated February 10, 2014 issued by the MoS, Govt of India.
His brief resume, inter-alia, giving nature of expertise in specific functional area is
provided elsewhere which forms part of this notice.
None of the Directors or Key Managerial Personnel of the Company or their relatives
except Mr. P. C. Mohapatra is in any way, concerned or interested, financially or otherwise,
in the resolution.
The Board recommends the resolution for the approval of shareholders.
Item No.12: Dr.G.B.S.Prasad, Executive Director (Personnel) of RINL was appointed as Director
(Personnel) of RINL by the President of India vide its letter No.1(9)2013-VSP dated
February 11, 2014 issued by Ministry of Steel (MoS) for a period of five years from the
date of assumption of charge of the post, i.e. May 01, 2014, or till the date of his
superannuation or until further orders from the MoS, whichever is earliest. The terms
and conditions regulating his appointment is as per the letter No. 1(9)/2013-VSP dated
July 02, 2014 issued by the MoS, Govt.of India.
His brief resume, inter-alia, giving nature of expertise in specific functional area is
provided elsewhere which forms part of this notice.
None of the Directors or Key Managerial Personnel of the Company or their relatives
except Dr.G.B.S.Prasad is in any way, concerned or interested, financially or otherwise,
in the resolution.
The Board recommends the resolution for the approval of shareholders.
Item No.13: Mr. D.N.Rao, Executive Director (Works), RINL was appointed as Director (Operations) of
RINL by the President of India vide its letter No.1(11)2013-VSP dated July 01, 2014 issued
by Ministry of Steel (MoS) for a period of five years from the date of assumption of charge
of the post, i.e. August 01, 2014, or till the date of his superannuation or until further
orders from the MoS, whichever is earliest. The terms and conditions regulating his
appointment is to be determined by the Government of India.
His brief resume, inter-alia, giving nature of expertise in specific functional area is
provided elsewhere which forms part of this notice.
None of the Directors or Key Managerial Personnel of the Company or their relatives
except Mr. D.N.Rao is in any way, concernedor interested, financially or otherwise, in the
resolution.
The Board recommends the resolution for the approval of shareholders.
106
Item No.14: Based on recommendation of Audit Committee, the Board of Directors of RINL has
approved the appointment of M/s.Narasimha Murthy & Co., as Cost Auditors for the
financial year 2014-15.
M/s.Narasimha Murthy & Co, Cost Accountants, Hyderabad is panel of cost auditors of
RINL. Sri. K. Narasimha Murthy who is principal partner of Narasimha Murthy & Co,
Cost Accountants, having 33 years of professional experience and expertise over 45
Industries on all aspects of Cost control, Cost Reduction and Corporate Management.
He has served in various committees constituted by the GoI and GoAP. He held various
Board level positions in the industry.
Based on Audit Committee recommendations the Board approved the remuneration of
Rs.1,55,000/- (Rupees One Lakh Fifty Five Thousand only) for the financial year 2014-15
plus applicable service tax and other facilities extended similar to financial year
2013-14 i.e (a) Air Fare/s from Hyderabad to Visakhapatnam and back to Partners of the
Audit Firm. (b) II AC Train Fare/s from Hyderabad to Visakhapatnam and back to Audit
Assistants of the Audit Firm. (c) Local Conveyance at Hyderabad (to and Fro Airport) and
at Visakhapatnam i.e providing of AC Car. (d) Hospitality by VSP during the period of their
stay at VSP Guest House as Companys Guests.
As per Rule 14 of Companies (Audit and Auditors) Rules, 2014 read with section 148(3) of
the Companies Act, 2013, the remuneration recommended by the Audit Committee shall
be considered and approved by the Board of Directors and ratified subsequently by the
shareholders.
Accordingly, members are requested to ratify the remuneration payable to the Cost
Auditors for the financial year 2014-15.
None of the Directors or Key Managerial Personnel of the Company or their relatives is
in any way, concerned or interested, financially or otherwise, in the resolution.
The Board recommends the resolution for the approval of shareholders.
Item No.15: The present Articles of Association (AoA) of RINL are based on the Companies Act,
1956 and several regulations in the existing AoA of RINL contain references to specific
sections of the Companies Act, 1956 and some regulations in the existing AoA are no
longer in conformity with the Act.
The Companies Act, 2013 is now largely in force. On September 12, 2013, the Ministry of
Corporate Affairs (MCA) had notified 98 Sections for implementation. Subsequently,
on March 26, 2014, MCA notified most of the remaining Sections. However, substantive
sections of the Act which deal with the general working of companies stand notified.
With the coming into force of the Act several regulations of the existing AoA of RINL
require alteration or modification or deletions in several articles. Given this position, it is
considered expedient to wholly replace the existing AoA by a new set of Articles.
The new AoA to be substituted in place of the existing AoA are based on the Companies
Act, 2013.
Pursuant to Section 14 of the Companies Act, 2013 (Act), the consent of the Members of
the Company by way of a Special Resolution is required for adoption of a new set of
Articles of Association of the Company. Accordingly, this matter has been placed before
the General Meeting for approval of shareholders.
107
The Board of Directors of the Company, therefore, recommends passing of the Special
Resolution by the shareholders as set out in the Notice above.
A copy of the proposed new set of the Articles of Association of the Company would be
available for inspection at the registered office of the Company.
None of the directors, managers, key managerial personnel of the Company and their
respective relatives are in any way interested in the resolution.
Item No.16: In terms of Article 73 of the Articles of Association of RINL, the number of Directors of
the Company shall not be more than sixteen and the Board strength of RINL as on date is
sixteen directors.
As per the provisions of Section 149 of the Companies Act, 2013 which came into force
w.e.f. April 01, 2014, the Company shall have a maximum of fifteen directors only. Provided
the company may appoint more than fifteen directors after passing a special resolution
by the shareholders in the General Meeting.
Accordingly, in order to comply with the latest provisions of the Companies Act, 2013, the
resolution as set out in the notice is proposed for passing by the shareholders.
The Board of Directors of the Company, therefore, recommends passing of the Special
Resolution by the shareholders as set out in the Notice above.
Item No.17: To meet the Capital Expenditure of the Company the Board in its 284thmeeting held on
September 09, 2014 has approved borrowing limits of 9,000 Crs (Rupees Nine thousand
Crores only) for funding the capex, for various ongoing / new projects, which are required
to be funded through debt which includes, inter alia, long term debt from banks and
issue of non-convertible debentures etc.
As on 30thJune 2014 the Company has outstanding funded borrowings for capital
expenditure of 1736 Crs, which were drawn from Banks as long term and short term
borrowings keeping in view the interest rate scenario. Further Company is required to
draw additional borrowings to meet the expenditure for ongoing projects
To tap the debenture market for the purpose of capex borrowings, Company has obtained
ratings of AA from CRISIL and AA+ from CARE rating agencies, for 2000 Crs. There is
an opportunity to the Company to borrow long term funds through issue of NonConvertible Debentures (NCDs) at lower interest rates when the debt markets are
favorable. To meet the requirement of Capital Expenditure, issue of NCDs, upto an amount
of 4,000 Crs, in smaller tranches will benefit the Company which is offered through
private placement. Necessary rating would be obtained for 4000 Crs.
The Companies Act 2013, which is effective from 12thSeptember, 2013 requires previous
approval of the General Meeting for private placement of Securities like NCDs etc., which
was not envisaged in the erstwhile Companies Act, 1956.
Section 42 of Companies Act, 2013, read with rule 14 (2) (a) of The Companies (Prospectus
and Allotment of Securities) Rules 2014, which are effective from 1stApril 2014, requires
prior approval by the shareholders of the Company, by a Special Resolution, in case of
offer or invitation for non-convertible debentures under private placement. It shall be
sufficient if the Company passes a special resolution only once in a year for all the offers
or invitation for such debentures during the year.
108
Since the Company has the approval of Board in place, for borrowings up to 9000 Crs
for capex purposes, which is within the borrowing powers of Board as per Section 179
and 180 (1) (c) of the Companies Act, 2013, it is required to obtain the approval of
shareholders under Section 42 of the Companies Act, 2013, by special resolution, for
raising funds through issue of NCDs, by private placement, as explained above. Such
approval of shareholders will be valid for one year, for issue of NCDs. This would enable
the Company to issue bonds for an amount of 4000 Crs, if required, in one or more
tranches, based on the debenture market conditions.
None of the directors, managers, key managerial personnel of the Company and their
respective relatives are in any way interested in the resolution.
The Board of Directors of the Company, therefore, recommends passing of the Special
Resolution by the shareholders as set out in the Notice above.
Item No.18: Mr. T.V.S.Krishna Kumar, General Manager (F&A), RINL was appointed as Director
(Finance) of RINL by the President of India vide its letter No. 1(1)2014-VSP dated August
25, 2014 issued by Ministry of Steel (MoS) for a period of five years from the date of
assumption of charge of the post, or till the date of his superannuation or until further
orders from the MoS, whichever is earliest. The terms and conditions regulating his
appointment is to be determined by the Government of India.
His brief resume, inter-alia, giving nature of expertise in specific functional area is
provided elsewhere which forms part of this notice.
None of the Directors or Key Managerial Personnel of the Company or their relatives
except Mr. T.V.S.Krishna Kumar is in any way, concerned or interested, financially or
otherwise, in the resolution.
The Board recommends the resolution for the approval of shareholders.
109
Name
110
Prof Sushil
Independent Director
Independent Director
Independent Director
DIN
05298647
05300091
06416704
Qualifications
Charted Accountant
Expertise in
specific
functional Area
Directorship
held in other
Public
companies
NIL
NIL
Membership/
Chairmanship of
Committees in
RINL
Chairman of Audit
Committee.
Member of Nomination
& Remuneration
Committee and
Stakeholders
Relationship
Committee;
Grievance Redressal
Committee and
Committee of
Independent Directors
(COID)
Chairman of Shareholders/
Investors Grievance Committee;
BSC on CSR Sustainability
Development Committee;
Member of Audit Committee;
BSC on Marketing (BSCOM) and
Committee of Independent
Directors (COID)
Membership/
NIL
Chairmanship of
Committees in
other public
Companies
(other than
RINL)
No.of Shares
held in RINL
NIL
NIL
NIL
Name
Independent Director
Independent Director
Independent Director
DIN
01843547
02410540
02726120
02708503
Date of Birth
& Age
Qualifications
Ph. D. in International
Trade from the
Institute of
International Studies,
Geneva., Masters
Degree in Economics
from the George
Mason University,
USA., Masters Degree
in Public Policy from
the Harvard
University.
M.Sc Physics
Charted Accountant
Expertise in
specific
functional
Area
He has 40 years of
experience in the
Indian Army in
transforming
operations of a large
scale private sector /
public sector
organization. He is a
multi-faceted
professional with
domain expertise in
the fields of
operational logistics
and supply chain
management,
equipment
management & its
technical repairs and
maintenance
environment and
infrastructure
management,
sanctioning of
environmental
clearances for
infrastructure and
coastal regulation
zone projects, power,
steel, mining
management and
disaster management.
Lieutenant General
Mahajan has been
awarded with the
highest military and
national awards
PVSM, AVSM, VSM.
He is a Director in
NTPC Limited,
Hindustan Zinc
Limited and Tehri
Hydro Development
Corporation India
Limited and Bank of
Baroda. He is a
Member of Task Force
on MoU, DPE, GoI for
the years 2011-12 and
2012-13. He is a
Member of the Fee
Structure Committee
for Professional
Educational
Institutions of Odisha
appointed as per the
direction of Supreme
Court of India since
2007. He is the
treasurer of the Indus
Entrepreneur. He has
received various
awards from different
institutions i.e.,
Corporate Odisha
award 2012; Kubera
Shree award 2011 and
Snehi Pratibha
Sanman award 2011.
111
Name
Directorship
held in
other Public
companies
Independent Director
1. Suryoday Micro
Finance Limited.
Konkan Railway
Corporation Limited
Independent Director
MSTC Limited
Independent Director
1. Hindusthan Zinc
Limited
2. THDC India Limited
3. Odisha State Civil
Supplies
Corporation Limited
4. IFCI Factors Limited
4. Gati Limited
112
Membership/
Chairmanship
of
Committees
at RINL
Chairman of
High Power Steering
Committee;
Member of
Nomination &
Remuneration and
Stakeholders
Relationship
Committee
BSC on Marketing
(BSCOM) and
Committee of
Independent
Directors (COID)
Membership/
Chairmanship
of
Committees
across all
public
Companies
(other than
RINL)
Suryoday Micro
Finance :
Member of following
Committees :
Audit
Remuneration
Risk Management
Management
L&T Metro Rail
(Hyderabad Ltd):
Member of
Audit Committee
No.of
Shares held
in RINL
NIL
Chairman of
Ethics and HR
Committee
Member of
BSC for Steel
Processing Units
(SPU), Raw Material
Security and Joint
Ventures &
Acquisition
Committee
and Committee of
Independent Directors
(COID)
Chairman of
Grievance Redressal
Committee;
Member of
BSC on CSR
Sustainability
Development
Committee
Ethics and HR
Committee and
Committee of
Independent Directors
(COID)
Chairman of
BSC for Steel
Processing Units
(SPU), Raw Material
Security and Joint
Ventures & Acquisition
Committee;
Member of
Audit Committee;
BSC on CSR
Sustainability
Development
Committee and
Committee of
Independent Directors
(COID)
NIL
MSTC :
Member of
Audit Committee
NIL
NIL
NIL
Name
P.C. Mohapatra,
Director (Projects)
Dr.G.B.S.Prasad
Director (Personnel)
D.N.Rao
Director (Operations)
DIN
06738364
06886500
06914797
06914774
Date of Birth
& Age
January 01,1959;
55yrs
December 04,1956;
57 yrs
Qualifications
Ph.D HRM.,
M.B.A.,B.L., M.PhilLabour Studies.,
Charted Accountant,
M.B.A. from Andhra
University., PGDCA.
Expertise in
specific
functional
Area
Directorship
held in other
Public
companies
NIL
OMDC
NIL
Membership/
Chairmanship
of
Committees
at RINL
RINL:
RINL:
RINL:
Member of following
Committees;
BSC for Steel
Processing Units
(SPU), Raw Material
Security and Joint
Ventures &
Acquisition
Committee.
High Power Steering
Member of following
Committees;
BSC on CSR
Sustainability
Development
Committee
Nomination &
Remuneration and
Stakeholders
Relationship
RINL:
Member of following
Committees;
BSC on CSR
Sustainability
Development
Ethics and HR
Committee
Grievance &Redressal
Committee
Member of following
Committees;
Committee of
Management
High Power Steering
Committee (HPSC)
BSC on Marketing
(BSCOM)
Grievance Redressal
113
Name
114
P.C. Mohapatra,
Director (Projects)
Dr.G.B.S.Prasad
Director (Personnel)
D.N.Rao
Director (Operations)
Committee (HPSC)
Shareholders/
Investors Grievance
Committee
Committee of
Management
Committee
Ethics and
HR Committee
Shareholders/
Investors Grievance
Committee
Committee of
Management.
Committee of
Management
Membership/
Chairmanship
of
committees
across all
public
Companies
(other than
RINL)
NIL
NIL
NIL
NIL
No.of
Shares held
in RINL
100
As a nominee of
President of India
NIL
NIL
100
As a nominee of
President of India
2.
3.
4.
Consequently the proposals for their appointment as Independent Directors as mentioned in Item
Nos. 7, 8, 9 & 10 of Annual General Meeting Notice dated 23rd Sept. 2014 will not be taken up for
consideration in the Meeting scheduled to be held on Monday, the 29th Sept. 2014 at 3.00 PM at
Visakhapatnam.
P. Mohan Rao
GM (CA) & Company Secretary
Dated : 25th Sept. 2014
Place : Visakhapatnam
115
deliver high quality and cost competitive products and be the first choice of customers
be a respected corporate citizen, ensure clean and green environment and develop vibrant communities
around us
MIS
SION
MISSION
To attain 20 million tonne (Mt) liquid steel capacity through technological up-gradation, operational
efficiency and expansion; augmentation of assured supply of raw materials; to produce steel at
International Standards of Cost and Quality; and to meet the aspirations of the Stakeholders.
OB
JEC
TIVES
OBJEC
JECTIVES
Stabilise 6.3 Mtof Liquid Steel Expansion by 2014-15 with the mission to expand further in
subsequent phases as per the corporate plan.
Revamp existing Blast Furnaces to make them energy efficient to contemporary levels and in the
process increase their capacity by 0.5 Mt each, thus total hot metal capacity to 7.5 Mt. by 2015-16.
Be proactive in conserving environment, maintaining high levels of safety and addressing social
concerns.
CORE VALUES
Commitment
Customer Satisfaction
Continuous Improvement
116