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Ferro Scrap Nigam Limited

(A Government of India Undertaking)

36

E |inx
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Annual Report

2014-2015
Contents

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64-82
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112
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114
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116
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118-160

Board of Directors

02

Chairmans Statement

04

*
*
*

Directors Report
09
Auditors Report
31
Comments of Comptroller and
59
Auditor General of India (CAG)
Secretarial Audit Report
Form No: MR-3
61-63
Extract of Annual Return
Form No: MGT-9
65-83
Report on Corporate Governance 91
Balance Sheet
113
Statement of Profit and Loss
115
Cash Flow Statement
117
Notes to the Financial
Statements
119-161

*
*

*
*
*
*

01
00

B B Bx B/ F

S N L

xnE hb

BOARD OF DIRECTORS

B. E. j{`-+vI
+iH |-|v xnE (08.02.2015 iE)
V ]]S -|v xnE (09.02.2015 )
. .
E. B. xpxl (22/12/2014 iE)
b. . (22/12/2014 )

E{x S
+ni |E
J{IE
+O B {
xn J{

Shri S. K. Tripathi - Chairman

Additional Charge of Managing Director (Up to 08.02.2015)
Shri Rajib Bhattacharya Managing Director (w.e.f. 09.02.2015)
Shri B. B. Singh
Shri K. S. Samarendranath (up to 22.12.2014)
Shri D. B. Singh (w.e.f. 22.12.2014)

Shri Aditya Prakash Sharma

Secretarial Auditor
Saumayo Jyoti Seal

Auditors
M/s Agarwal & Pansari
Chartered Accountants

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Company Secretary

Bankers
State Bank of India
Bank of India
Indian Bank
Andhra Bank
Bank of Baroda

Internal Auditors
M/s.Awatar & Co-Chartered Accountants
M/s.Ashok Kumar Sharma & Associates-Chartered Accountants
M/s.H.N.Pradhan & Co-Chartered Accountants

{VEi E
B. B. Bx. B. x,
<C{x] SE,
x] Bx, {] C x. 37
< (U.M.)
x: (0788) 222-2474/2475
C: (0788) 222-0423/3884

Punjab National Bank

UCO Bank
Corporation Bank

E-mail : fsnl_co@rediffmail.com
Visit us at : ///www.fsnl.nic.in

CIN : U27102CT1989GOI005468
02
00

B B Bx B/ F

S N L

Registered Office :
F.S.N.L. Bhawan,
Equipment Chowk, Central Avenue,
Post Box No. 37,
Bhilai (C. G.)
Phone : (0788) 222-2474/2475
Fax

: (0788) 222-0423/3884

o]

E{x E E{x E +{x OE E =k |nx Ei =E

|Sx E i i B r |nx E E{x E ix E {
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Vision
The Company has a vision to increase its operational horizon by expanding the
existing business to provide better services to its customer and to make the
company competitive.

v
E{x E =q +{] {V E xh*

Mission
The Mission of the Company is to generate Wealth from Waste

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Objectives
The Companys objective is to remain a market leader in the field of
waste recycle management in the steel industry.

03
00

B B Bx B/ F

S N L

+vI vx

CHAIRMANS STATEMENT

x,
G{ xM ]b E + +{ E
nE ExB* Z +{E ii B E
+{E E{x u | + iE { k
2014-15 E nx `15.49 Ec E Sx +Vi
E V E * EU ] ={v E
+{E l ]x SM*

GENTLEMEN,
My heartiest greetings to you on behalf of Ferro Scrap
Nigam Limited. It is my pleasure to share with you that
your company could earn Operating Profit of ` 15.49
crore during the financial year 2014-15 for the first time
since inception. I would like to share some of our
significant achievements with you.

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E E =t E l E Ei B +{x IiV E
+r E B i *

THE PRESENT SCENARIO

The performance and progress of your company is
directly depends upon the growth and expansion of
steel industry. Steel sector companies are already
facing problems on account of huge overcapacity. The
massive influx of cheap steel from countries with whom
India has free trade agreement viz., China, Japan,
Korea are adding woes to the domestic steel industry.
The recent devaluation of the Chinese Currency Yuan is
going to worsen the situation especially for steel sector.
If the slow-down in the domestic consumption continues
for a long time, it will have an adverse impact on the
performance of the domestic steel industry.
Your Company firmly believes that though the present
situation of steel sector is challenging one, the vision of
Make in India launched by our Honble Prime Minister
will strengthen the Indian PSUs and with mutual trust
and cooperation, the PSU fraternity will become a force
to reckon with in the near future. Your company is fully
poised to work with PSUs in other sectors and expand
its horizons.

VxB
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+x G{ E +Ei g Ei , V +{E

FUTURE PLANS
In line with the projected capacity expansion activities of
the steel plants, the requirement of scrap is expected to
04
00

B B Bx B/ F

S N L

E{x BE + E { nJi , + +x
<{i j B +iH E E {z Ex E B
i *

Increase, your company looks up to this as an

opportunity and it is fully geared up to take up these
additional jobs of the Steel Plants in the years ahead.

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Your Company is executing out its plan to revamp /

replace the existing fleet of equipment under Addition /
Modification / Replacement in a phased manner and
also building up additional processing facilities to
achieve cost reduction and increase productivity as well
as efficiency.

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Your Company is also exploring the possibilities for

acquiring the business in areas viz., Overburden
removal at Mines (Coal, Ore etc.,) Scrap Management
at Air India, Recovery of stainless steel scrap from
stainless steel slag at Salem Steel Plant.

2014-2015 E nx x{nx ]iB

PERFORMANCE HIGHLIGHTS DURING 2014-2015

+{E E{x u 23.07 J ]x G{ |h il 59.75

J ]x Eb M bM {ni E M* E]
B<W il {x b{ G{ E |{i E E
Vn iE x{nx |{i E M*

Your Company has achieved a dispatch of 23.07 lakh

tones of scrap and a record slag handling of 59.75 lakh
tones. The physical performance has been achieved
despite reduction in input of scrap from current arisals
and also from old dumps.

G{ B M E B |Gh E VB M
=i{nx Mi E ix 10.15% E r < *

There has been an increase of 10.15% over previous

year in departmental production in recovery &
processing of scrap and slag.

Mi E ix BSBb ={M 6% B E]
={M 23.2% E E < * Mi k E ix
ti ={M 26.67% E E < *

Electricity consumption over last financial year.

2014-2015 E nx k ]iB

FINANCIAL HIGHLIGHTS DURING 2014-2015

Mi E `237.88 Ec E E + E ix E{x
E E + `275.78 Ec * < i E V
`37.90 Ec E fi <, V Mi E ix
15.93% +vE * E{x E E-{ `25.36

The gross income of the company was ` 275.78 Cr as

There has been a reduction of 6% in HSD consumption

and 23.2% in Lubricant consumption over previous
year. There has been a reduction of 26.67% in

compared to the previous years gross income of

` 237.88 Cr. Thus the gross revenue has increased by
` 37.90 Cr which is 15.93% more over the previous year.
05
00

B B Bx B/ F

S N L

Ec , VE Mi E E-{ `12.43
Ec l, + < i 104% E r <*
E{x E |ni `12.94 Ec E r < V
(1)Mi xjh ={ (2)=i{nx r B
(3) =i{nEi O r E {hi *
`3.42 Ec E Pi +, V |nk {V E
171% il Mi Pi 103.57% +vE *
Mi E ix r {k ` 12.90 Ec E
fi < V 8.82% E <V ni * Mi E
ix |i + +Vx 102.96% E r < *

The companys profit before tax (PBT) during the year

was ` 25.36 Cr whereas the previous years PBT was `
12.43 Cr. which is 104% more.The profitability of the
company has shown improvement of `12.94 Cr. and is
attributable to (i) cost cutting measures (ii) increase in
production and (iii) overall increase in productivity.
The dividend declared was ` 3.42 Cr which is 171% of
paid up capital and 103.57% more than the last years
dividend. Net worth of the company also increased by `
12.90 Cr over previous year which shows 8.82%
increase. Earnings Per Share increased by 102.96%
over previous year.

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DIVERSIFICATION / EXPANSION OF ACTIVITIES

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In this endeavor your company opened up a new unit at

Your Company is continuously exploring the possibility

to expand its activities in private sector and Public
Sector steel plants for scrap recovery, slag handling and
other steel mills services.

SAIL, VISL, Bhadravati and commenced operations

from January 2015.
It is also important to convey that your company has
added additional jobs like blast furnace, slag pit
Management etc. at ISP, Burnpur, RSP, Rourkela and
RINL, VSP, Vizag

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+x B SU t +x E Ij z

CORPORATE GOVERNANCE & OTHER POLICIES

In compliance with DPE Guidelines on Corporate
Governance and the provisions of the Companies Act,
2013, Board level committees viz. Audit Committee,
Remuneration Committee & CSR Monitoring
Committee are operational in your company.

Your company is undertaking various activities in the

areas of Education, Environment Protection, Swatchh
06
00

B B Bx B/ F

S N L

E Ei B V E B +{x xMi VE
=kni E xx E V *

Bharat Abhiyan & Swatchh Vidyalaya Abhiyan and

discharging its corporate social responsibilities to the
society.

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to time.

EiYi

ACKNOWLEDGEMENT

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E +x =xE M xi |{i
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Before I conclude, I would like to take this opportunity to

Whistle Blower Policy is fully operational in your

company. To prevent sexual harassment of women at
work place in your organization, a duly constituted
Committee for prevention of sexual harassment at work
place is operational which reviews the working from time

express my sincere gratitude to my colleagues on the

Board for their valuable contribution to the deliberations
of the Board.
I would like to express my sincere thanks to our holding
company, MSTC LTD for their continued support to the
Company. We are also grateful to the Ministry of
Steel,Government of India, Ministry of Railway, SAIL,
RINL, Neelachal Ispat and BHEL for their continued
support and valuable assistance to the Company.
I am confident that with continuous focused efforts in
areas of cost control and efficiency improvement and
with skilled, experienced, and committed human
resource, your companys financial performance would
improve in the next year also.
Last, but not the least, I would like to thank the officers
and employees of the Company for their sincere efforts
put in during the year. I would also like to place on record
my sincerest appreciation of the co-operation extended
by all Unions for maintaining excellent and cordial
working atmosphere and industrial relations. I also wish
to put on record, my sincere thanks to State
Governments for the guidance and co-operation
extended by them. I hope that we shall continue to have
their support in the coming year also.

07
00

B B Bx B/ F

S N L

+ nxE 31 S 2015 E {i E B xnE

E |inx, J{IE ix {j, B x J
h il xEn | h E, txE
J{IE E |inx B i E xjE
J {IE E ]{{h E l +ME i
+Oi Ei *
lx: <
nxE 6 +C] 2015

I, now move the Director's Report as well as the audited

Balance Sheet and the statement of Profit & Loss
Account and Cash Flow statement for the year ended
31st March 2015 alongwith the report of the Statutory
Auditors and the comments of the Comptroller & Auditor
General of India thereon for adoption.

B.E.j{`
+vI

Place: Bhilai
Date: 6th October, 2015

08
00

B B Bx B/ F

S N L

S.K.TRIPATHI
Chairman

xn E |inx

DIRECTORS REPORT

|i,
nxn,

To,
The Members of

G{ xM ]b
x,

FERRO SCRAP NIGAM LIMITED

GENTLEMEN

+{E xnEMh E nxE 31/03/2015 E {i B E

B 36 E |inx E l-l J {IE E |inx
il xjE B i E J {IE E ]{{h E |ii
Ei B l l |vx S il h E
|inx i E M *

Your Directors take pleasure in presenting the 36TH

Annual Report together with the audited financial
statements for the year ended 31-03-2015 along with
the comments of the Comptroller and Auditor General of
India. The Management Discussion and Analysis has
also been incorporated into this report.

PERFORMANCE HIGHLIGHTS
] x{ni P]E:PHYSICAL :
iE The Company has once again performed exceedingly
E{x x {x: +{x x{nx nPEx +xv V v+
well, despite obstacles like nonrenewal of long-term
+.b.B M E xx x x E Eh ni
agreement
at RWF, Bengaluru. FSNL achieved a
i |{i E * B.B.Bx.B x 23.07 J ]x G{ E
dispatch of 23.07 lakh tones of scrap and a record slag
|h il 59.75 ]x M E f< Ex i
handling of 59.75 lakh tonnes.
nV E * iE x{nx E
Production Performance (In 000 MT)
3000
The
physical performance has
xSi ix n+ E l-l
been achieved despite reduction
2500
{x f G{ E x` E
in input of scrap from current
nV E * G{ B M vi 2000
arisals and also from old
={v E x ix
dumps.This achievement of
1500
scrap
and slag was possible
Miv/GE{ E vx
by
augmenting
the present
vi E E +<.B.{.x{, 1000
activities and adding additional
+.B.{.=E il +.+<.
500
jobs like blast furnace, slag
Bx.B..B.{ J{]h +n
pit
Management etc. at ISP,
0
Burnpur, RSP, Rourkela and
] x vi {] |vx
08-09 09-10 10-11 11-12 12-13 13-14 14-15
RINL, VSP, Vizag. Such
2263 2371 2645 2148
2326 2519 2307
V +iH E E Vc
achievements have been possible due to the excellent
M * B ={v =iE] E B Ei, MiE
work
culture, team spirit, hard work and dedication of all
, E` { il i ES {h, OE |{i
the employees as well as co-operation and support
M B nn E Eh E +{x i E |{i E
received from customers.
*

BE x< <E< E |Sx Vx, 2015 , .+<.B.B.

pi u E M *

We have also opened a new unit at SAIL, VISL,

Bhadravati and commenced operations from January
2015.

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G{ E j E +< * {hi: G{ B M E
={vi GMi E { M * B E +ivE
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The Technological upgradation/ modernization in steel

making has resulted in to reduction of scrap arisals in
steel plants and as a result the availability of scrap from
slag has gradually reduced. To improve the growth and
profitability, FSNL already increased its activities at
09
00

B B Bx B/ F

S N L

 r nV Ei B EU <{i j x+ E ii
xix MhiE E E xSi Ei B tx j
{x M r nx M*

some steel plants and is exploring further opportunity to

secure new jobs and increasing volume in the existing
steel plants.

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r |nx Ei B 0-5 B B E M Jb E ={M x]
{] E Vi , t{ Mi 3 u iExE
Yx E +i x E M *

As far as technology absorption is concerned, FSNL has

set up slag Grinding Plant at Rourkela Steel Plant by
which the enhanced requirement of RSP from 0-5mm
slag fraction for use in their sinter plant is being fulfilled.
However we have not imported any technology during
past 3 years.

Financial Performance

( ` in Crore)

300
250
200
180
160
140
120
100
80
60
40
20
0

08-09

Income 137.30
Expenses 132.95
G.Margin
P.B.T.

k P]E:h
E V
(E Mix E {)
(E Mix E n)
+Oxi -Mi
={v E xVx
xVx+i
|ii +i

16.83
4.31

09-10
158.61
152.51
21.19
5.76

10-11
168.53
166.90
13.46
1.78

(` J )
2014-15

2013-14

27,578.38

23,787.67

2,536.40
1,709.52
0.78
1,710.30
-

842.28
0.58

168.45

{ E

68.52

28.63

x +Ii xv

1,299.00

645.00

+M k +Oxi J

0.88

14-15
275.78
250.25
36.26
25.36

2014-2015

2013-2014

Total Revenue

27,578.38

23,787.67

Profit Before Tax

2,536.40

1,242.83

Profit After Tax (PAT)

1,709.52

842.28

0.78

0.58

1710.30

842.86

300.00

Proposed Final Equity

Dividend

41.90

168.45

Tax on Equity Dividends

68.52

28.63

1,299.00

645.00

Appropriations:
Interim Equity Dividend

General Reserve
Surplus carried to the next
years Account

0.78

( ` in lacs)

Particulars

Profit available for

Appropriations

41.90

13-14
237.87
224.88
26.53
12.43

Balance brought forward

from Previous year

842.86

12-13
197.81
195.35
14.65
2.53

FINANCIAL HIGHLIGHTS:

1,242.83

300.00

11-12
174.49
169.41
13.67
2.03

10
00

B B Bx B/ F

S N L

0.88

0.78

E{x E E ={Vx `27,578.38 J E ` 26,410.45

J Mi E ` 23,787.67 J il ` 22,414.43
J E G: ix Ei B i E M * E{x
E E i il E xi E +nM E {
`3,625.53 J il `2,536.40 J ixiE E ii
` 2,652.79 J { B `1,242.83 J G: l*

The gross income of the company was `27,578.38 lakhs

including service charges of ` 26,410.45 lakhs as
compared to the previous years figure of
` 23,787.67 lakhs and ` 22,414.43 lakhs respectively.
The companys gross margin and the profit before tax
during the year was `3,625.53 lakhs and `2,536.40
lakhs as compared to the previous years figure of
`2,652.79 lakhs and ` 1,242.83 lakhs respectively.

E{x E ni `1,293.57 J { E v +
il (i)Mi E E]i E {h, (ii) =i{nx r
il (iii)=i{nEi O r E Eh *

The profitability of the company has shown

improvement of `1,293.57 lakhs and is attributable to
(i) cost cutting measures (ii) increase in production and
(iii) overall increase in productivity.

x +IiE{x +vx 2013 E +xi v 123 E ii 1,299.00

J { B x Ji x +Ii Ji
+ii E Vx |ii il 0.88 J { E +v
ix-{j +Oi E Vx *
xnE b E |i GE 1 nxE 20.03.2015 E +x
` 300.00 J E +i E Mix k 201415 E M il +i E Mix k
` 41.90 J E E Vx |ii *

GENERAL RESERVES:
Pursuant to Section 123 of the Companies Act, 2013, an
amount of `1,299.00 lakhs is proposed to be transferred
to General Reserve from Profit & Loss Account leaving a
balance of ` 0.88 lakhs to be carried forward to the
Balance Sheet.
DIVIDEND:
Pursuant to Board Resolution No: 1 dated. 20.03.2015
an amount of ` 300.00 lakhs has been paid as
interim dividend for the financial year
2014-2015. The final dividend
proposed for the financial year
is ` 41.90 lakhs.

=V Ih, |tME +h
B n p ={Vx B M
E{x +vx E Sxl +xi
v 134(3)(B)2013 E {`i x
8, E{x (J) x 2014 E
x E ii =V Ih, |tME
+h B n p ={Vx B
M E h +xMxE-I
|inx E M { Mx E
M *

CONSERVATION OF
ENERGY, TECHNOLOGY
ABSORPTION AND
FOREIGN EXCHANGE
EARNING & OUTGO
The information pursuant to
Section 134(3)(m) of the
Companies Act,2013 read with
rule 8 of the companies
(Accounts) Rules, 2014 in
respect of Conservation of
Energy,Technology
Absorption, and Foreign
Exchange Earnings and Outgo
are given in the Annexure-I
forming part of this report.

1.|tME +h B xx :-

1. Technology Absorption and Innovation:

Particulars with respect to Absorption of
Technology

|tME +h vi h :viE G{ E {x: |{i il |Eh E G{ xM

(B.B.Bx.B.) E n |E E ={E E +{I -l
|M {x] (|Eh {x]) B ] bM ={Eh l
=iJxE (BCE ]) b{, {-b, il bV +n
={Eh xi+ (+.<.B.B.) u ={v E Vi ,
il i |Ehi j/<E< V E Mx]E {]

For Recovery and Processing of metallic scrap, FSNL

requires two types of equipments namely Processing
Plants & Material Handling Equipments. Material Handling
Equipments such as Excavators, Dumpers, Pay-loaders,
and Dozers etc.are procured from OEMs and all the
Processing Plants/Units such as Magnetic Separators,

11
00

B B Bx B/ F

S N L

M |M B O<xbM j, B< <xSx] {x] E

+E{x Sx l{x B l{x G{ xM
]b E u E V *

Slag Processing & Grinding Plants, Fe-enrichment

Plants etc. are being designed, fabricated, erected and
installed by FSNL in-house.

(+) M O<xbM j <E< GE BV-4025 E Sx

B l{x E E =E <E< { E M *
2.+xvx B EiE Miv:Exp VxE Ij E ={G E V E M E
Y{x GE 3(9) 2010-b.{.<.(B+) nxE 23.09.2011
E +x +xvx B E E Exi E M *

A. Fabrication and Installation job of Slag Grinding Plant

Unit No.SG-4025 at Rourkela Unit Completed.
2.Research & Development activities:DPE guidelines on Research & Development for CPSEs
issued vide office memorandum no.3(9)2010 DPE
(MoU) dated 23-9-2011 has been implemented.

|ME j E l{x +xvx B E E ii 10

] E +E E G{ <x E B < <xSx] E
{Vx E E { E M , < |E |ME j
E <i E {Ih E M il xx E {Ih i
nM{ <{i j- E |M |i E M *
<{i j E v +xv E li

Installation of Pilot plant for Research & Development

project for Fe enrichment of Scrap Fines below 10 mm
size is completed. The Pilot Plant for the same was
commissioned, tests were carried out and for further
testing samples sent to DSP-SAIL LAB.

1.

1. SAIL Plants

STATUS OF AGREEMENT WITH STEEL PLANTS :

j:E)=E <{i j:31.03.2016.

J)<E <{i j x{:31.03.2016.
M)< <{i j:31.03.2016.
V)E <{i j:31.03.2016.
M{ <{i j:31.03.2016.
c)n

a) Rourkela Steel Plant.: 31.03.2016.

b) IISCO Steel Plant-Burnpur.: 31.03.2016.
c) Bhilai Steel Plant.: 31.03.2016.
d) Bokaro Steel Plant.: 31.03.2016.
e) Durgapur Steel Plant: 31.03.2016.

2.+.+<.Bx.B.J{]h

<{i j
J{]h :+xv 31.10.2014 iE v l V 31.10.2017 iE
ii E M *
3. xS <{i xM ]b, b :+xv 12.05.2018 iE v *
4. ,u:- +xv 31.07.2016 iE v *
5. C], M:-+xv 05.09.2015 iE v *
6. .+<.B.{.,pi:- +xv 03.11.2017 iE v *

2. RINL,Visakhapatnam Steel Plant,

Visakhapatnam:Agreement was valid upto 31.10.2014, which is
extended upto 31.10.2017.
3. Neelachal Ispat Nigam Limited, Duburi:Agreement is valid upto 12.05.2018.
4. BHEL,Haridwar:-Agreement is valid upto 31.07.2016.
5. Rail Wheel Factory, Bengaluru:-Agreement is valid
upto 05.09.2015.

6. VISP, Bhadravati:Agreement is valid upto 03.11.2017

EE :-

PERSONNEL :The total strength of manpower in the company as on

31/03/2015 was 957, comprising of 145 Executives and
812 Non-executives. The overall representation of
employees belonging to Scheduled Caste, Scheduled
Tribe & OBC communities as on 31st March 2015 was
19.33%, 11.70% & 13.06%, respectively. The
Presidential directives issued from time to time with
regard to reservation of vacancies for SC/ST/OBC &
Physically challenged personnel in Recruitments,are
strictly adhered to by FSNL.

31.03.2015 E E{x 957 H {nl l Vx

G: 145 E{E il 812 M- E{E E JiE
l, 31 S 2015 E li O ES G:
19.33% +xSi Vi, 11.70% +xSi VxVi il
13.06 % {Uc M n E |ixvi * x< i

+V/+VV/+{ B E EM h E H E
H E +Ih E - { V ]{i
n E {] xn E +I: {{x G{ xM
]b E u E Vi *

12
00

B B Bx B/ F

S N L

31.03.2015 E li E ES 957 G: 939

{ B 18 ES l*

Out of the total strength of 957 employees as on

31.03.2015, the strength of Male & Female employees
was 939 & 18, respectively.

1.+V/+VV/{Uc

1.The position of SC/ST/OBC, Minority & Physically

challenged employees in various groups, as on 31st
March 2015 were as follows:-

M, +{JE B E EM
h E E E li 31 S 2015 E < |E l:-

ES
E E J

+V

+V
|ii

{ {
+.

14 3

610

0 5 109

18 2

11

13

57

+VV
|ii

+VV

+{

+{
|ii

+{JE

Group

E {
EM

No.of

SC

ST

ST

M
13

8.96

1.38

20

13.79

A.

14 3

17.72

58

9.43

66

10.73

60

B.

610

0 5 109

03

31.08

51

26.94

39

20.21

19

C.

18 2

11

n.<
ES
E
UcE

SC

Employees
F

OBC

%
M

OBC

Minority Physically

Handicapped
M

8.96

1.38

20

13.79

17.72

58

9.43

66

10.73

60

57

03

31.08

51

26.94

39

20.21

19

18 182

03

19.33

111

11.70

125

13.06

88

Excl.
Safai
Karmachari

n.<
ES
E
i
Ei

Incld.
Safai
Karmachari
939

18 182

03

19.33

111

11.70

125

13.06

88

TOTAL 939

i : 2014-15 x i x E M*

RECRUITMENTS:No recruitments were made during the year 2014-15.

+{JE E Eh :+{JE E Eh i |vxj E x 15 j EG E

Exx vi - { V i xn E
+I : x {E {{x E{x u E Vi , 31 S
2015 E li E 957 ES 91 ES
+{JE n E l il G{ xM ]b 31 S
2015 E li +{JE E |ixvi E |iii
9.51% l*
- { |Si/|ii v EhE E E ii
+{JE n E ES E iOi r B
+x E{x u |nx E Vi *

Various welfare measures as in vogue / introduced by

the company from time to time for the benefit of the
employees was duly extended to the employees
belonging to Minority communities uniformly.

EV M E Eh :E{x E EhE ={ E x E i h E
ES E {E { ii E M * V
+V/+VV il +x {Uc M n E E E
i Ei ES E EhE ={ E v
{ i] |nx E Vx i xSi E M *

WELFARE OF WEAKER SECTIONS:The rules/welfare measures of the company are widely

extended to all categories of employees, including
SC/ST/OBC community employees, and entire
satisfaction of the employees through such welfare
measures is ensured.

WELFARE OF MINORITIES:The directives issued from time to time for the welfare of
Minorities under Prime Minister's new 15 point
programme have been strictly adhered to by the
company. As on 31st March 2015, out of 957
employees, the total strength of employees belonging to
Minority communities was 91, and the percentage of
representation of Minorities in FSNL was 9.51% as on
31st March 2015.

13
00

B B Bx B/ F

S N L

x vx E :|i E i 2014-15 E | +{x E EVx

EE (E{E i M-E{E EE) B
+iE ji ={Eh xi+ il |i`i v
+ |Ih lx E v |Ih |n E Vx E
l n M<*
r |vE E +x E +v { ES E E
nIi x{h |{j |Ih E +Ei+ E lx Ei
|Ih EG M x E ES E xEi
E M, +Vi |Ih EG E J v l E
EE E E B Yx r E l l +tME
iExE E Ij nx-|inx x E =x +Mi
Ex*

HUMAN RESOURCES DEVELOPMENT:Like every year, a yearly plan was chalked-out at the
beginning of the year 2014-15 for imparting training to
all employees (Executives as well as Non-executive
employees) through Internal & External sources like
OEMs & reputed training institutions.
Based on recommendations of the concerned
authorities with regard to the training needs endorsed in
the Annual Performance Appraisal forms of the
employees, the employees were nominated for
undergoing such training programmes with a view to
enhance their skill & knowledge as well as to acquaint
them with the day-to-day developments in the industrial
technologies in the concerned field.

Sx +vE +vx, 2005 E Exx :-

IMPLEMENTATION OF RIGHT TO INFORMATION

ACT, 2005:-

Sx E +vE +vx E +Y{E +x |vx E

+x{x B.B.Bx.B. x +{x xMx E BE VxSx +vE ({.+<.+.) il BE E Vx-Sx
+vE il +{x 8 <E< BE-BE E Vx-Sx
+vE xH E * |v xnE B.B.Bx.B. |l
+{ |vE +. ]. +<. 2005 E +x x E
M * E{x x Sx E +vE +vx E v
4(1)(J) E +x +{Ii 17 z |E E
x/x/SUEi E x/|h E
|E]Eh E x E ii {h VxE E
+x{x i E{x E <] fsnl.nic.in { VxE E
xi +tix Ei |Ei E Vi *
Sx +vE +vx, 2005 E |vx E ii +x{x
E{x E u E Vi il +vx E ii S M
VxE xvi v ={v E Vi *

In compliance with the mandatory provisions of the RTI

Act, FSNL has appointed an Public Information Officer
(PIO) and one Assistant Public Information Officer at
Corporate Office and one APIO each at its 8 Units. MD,
FSNL is the first appellate authority under the R.T.I Act,
2005. The company has complied the information under
17 different templates/manuals/manuals for voluntary /
suo-moto disclosure as required under Section 4(1) (b)
of the Act and hosted the same on the companys
websitefsnl.nic.in and the information so published are
being regularly updated.
The company is pro-actively complying with the
provisions of Right to Information Act, 2005. All
information sought under the Act is being furnished
within the stipulated time period.

k 2014-15 E nx E 25 +nx Sx +vE

+vx, 2005 E ii nV E M l il i 25 +nx
{ xvi v i] {h x{]x E M*

During the financial year 2014-15, a total number of 25

application were received under the RTI Act, 2005 and
all 25 applications were duly replied to within the
stipulated time frame.

iEi Miv : G{ xM ]b E iEi M x +xE

{ Ei B ] {+ E +v { M`x E |zi,
li B iEi l {Si E*
G{ xM ]b E ix l E ii B
vi/Mi |Sx Miv E ExSx E
+x+ E l xE E v E j V E M
il Gxi E V * B.B.Bx.B.x +{x
i E xi+ E E {xEx Ei +E
+x+ i V E *

VIGILANCE ACTIVITIES:Vigilance Department of FSNL had taken several

initiatives during year with specific focus on preventive
vigilance and systematic improvement in the
organization.
In order to make the present system robust the study of
operation activity of FSNL was carried out and
recommendations along with SOP was submitted to the
Ministry and the same is being implemented.
Simultaneously reviewed the Recruitment Policy of
FSNL and submitted the necessary recommendations.
14
00

B B Bx B/ F

S N L

iEi M x B.B.Bx.B. E G-G x E

+tixi |nx Ex E +{x l l* V b x
+{x Gxi E Vx E Ei |nx E n , V
Gxi E n M *

Vigilance department has taken an initiative to update

Purchase Manual of FSNL., which has been approved
by the board and being implemented.

E nx, 3 SxiE `E J iEi +vE B

+vI--|v xnE E v +Vi E M<* Exp
+xh E l x `E +Vi E i S
E +i { n M, xi VS E Sx E ii viE
={ B +vE E {k h E ME I E
M<* E nx 13 Ei |Eh E VS Ex E ={xi
j/J iEi +H E x J iEi
+vE E `E +xi E< E Ek -
{ j |i E M*

During the year, 03 structure meetings between CVO

and CMD were held. Co-ordination meeting with CBI
was also held to finalise the agreed list. Routine checks
were conducted as a preventive measure and random
scrutiny of the Property Returns of the officers was also
carried out. During the year 13 nos. of complaint were
investigated and report submitted to Ministry / CVC in
stipulated time and necessary follow up action was
taken on minutes of the meeting of CVOs held by
Ministry time to time.

]S v-iExE E lE E E +EE vx
nx M i E l nxE 27 +C] 2014 1 x
2014 iE iEi VMEi {i E +Vx E M*
iEi VMEi {i E +v ES E v xv
|iMi, x |iMi il iEi E Exi Ex E
{l i B ES x iEi VMEi {i M
*
I:-

Vigilance Awareness Week:- 2014 was observed with

the theme of Combating Corruption- Technology as an
Enabler from 27th October, 2014 to 1st November,
2014 During this various activities like Essay
competition, Slogan competition, taking pledge by the
employees were carried out to create vigilance
awareness among the employees.
SAFETY:-

I x E +x{x ES E v VMEi x E
=q B.B.Bx.B. E i <E< i xMx
E I B Ii E E =q I n
E +Vx E M, V I il = r
{ n-n E +Vx E M* +Vx E
ES E u B =M E l n-n |iM
Vi+ E ={H ={ |nx E M*

As a measure of creating awareness among the

employees about safety & safe working practices,
Safety Day celebrations were organized in all the units
of FSNL as well as at Corporate Office, comprising of
debates on safety & allied matters. The celebration
received a good response from the employees with their
enthusiastic participation and suitable gifts were given
away to the winners of debate competition.

+Mxx M E u vi <{i j il |i`i

+Eh l ] I {n E v E{x E u
ES E il Ii E B +Mx/+Mx I
B S E |Ih n M*

Through the Fire service departments of the concerned

Steel Plants as well as the reputed agencies like
National Safety Council, the company also organized
special training programmes related to prevention of
fire/fire hazards and safe working practices for the
benefit of the employees.

|vx E E Mi :-

WORKERS' PARTICIPATION IN MANAGEMENT:-

|vx EE E Mi E x E M`x E S
{ Sx i{h E i * B.B.Bx.B.
<x E +ivE k |nx Ei * |vx E i
Miv E Exx EE E <]i Mni
E k E xSi Ex E =q B.B.Bx.B.
x xMi i E M |J i |vx

Since Workers' Participation in Management plays a

key role in smooth functioning of any organization,
FSNL gives utmost importance to this aspect. In order to
ensure optimum participation of workers in all activities
carried out by the management, FSNL has constituted a
Committee, viz., Joint Forum Committee, consisting of
equal number of representatives from Management &
the recognized Unions, including Heads of Department

15
00

B B Bx B/ F

S N L

xi |{i v E |ixv E x J i Ei
BE H S i E M`x E * H S i
|vx u xi il t E BE |ixv E xi Ei B
G: VE B H VE E {n { l{i E M *
H S i E xi `E E Vx SS il
ES E i v E Zx l +E
Zi vi +xv/Y{x E xi |{i P B
|vx E v l{x i iIi Zi E Vi
*

at Corporate level. Convener of JFC is nominated from

Management's side and a representative of the Unions
is nominated as the Jt.Convenor. Regular meetings of
the Joint Forum Committee is convened for holding
discussions and sorting out the matters of employees'
interests across the table. Wherever necessary,
Agreements/Memorandum of Settlements are also
signed by & between the management & the recognized
unions.

< |E +x-x E v + |vx B xx E

v i E M< ii M< il =E vx E
{{i B pi{h ih + E ii M<
E ` B {{i p{h ih E Vx E
+ |nx E Vi , B.B.Bx.B. x E E |vx
Mni E xi E E ii B xi {P]x E
k |nx E *

Such mutual discussions across the table provide

ample opportunities to the Unions as well as to the
Management to go into the details of the problems and
to find out the best possible solution, in a congenial
atmosphere, and thus, the Workers' Participation in
Management in FSNL is a regular & continuous
phenomenon.

+tME v :-

INDUSTRIAL RELATIONS:-

{h E nx E{x x p{h B v +tME v

E |i{nE H |nx Ei B E |E E +xME
P/n ci E P]x E x x i |{i E
{ =i{nx B H E I x + *

Through out the year a cordial & smooth industrial

relationship prevailed in the company with no incident of
Gherao/Bandh or Strike etc., resulting in loss of
manhour or production.

V xi :-

OFFICIAL LANGUAGE POLICY:-

- { V xi E Exx E v V EB
MB E xn E n Ji E l +x{x i
B.B.Bx.B.E]r *

All directives issued by the Government from time to

time with regard to implementation of Official Language
Policy are strictly adhered to by FSNL.

xi |h E l ES E xn +{x nxE E E
Ex i |ii E M* 2014-15 |iE
E i xn {Jc E +Vx i 2014
B.B.Bx.B. E i <E< i xMx E
+Vi E M* +Vi xn {Jc E +iMi xn
]{{h/+Jx, xn Yx |iMi+ +n ES u
=iEi E l M M, +Vi {v+ Vi+ E
Vx E |vx E +x{ xEn {E |nx E M*

With constant motivation, the employees were

encouraged to carry out their day-to-day jobs in Hindi.
Like previous years, in the year 2014-15 also Hindi
Pakhwada (Hindi Fortnight) was organized in the month
of September 2014 in all the units of FSNL as well as at
Corporate Office. Employees keenly took part in the
competitions organized during the Hindi Pakhwada like
Hindi Noting/Drafting, Hindi Gyan Pratiyogita etc. Cash
awards, as per provisions under the scheme were given
away to the winners of such competitions.

16
00

B B Bx B/ F

S N L

E Ei ES (E{E B M-E{E)
E xEb }]+ +E{ (E{]) xn E E
=i{n E Exx i |ii E M *

Employees (Executives as well as Non-executives)

working in the offices are encouraged to work on
Unicode software available on their computers for
enhancing the output of jobs carried out in Hindi.

< |E V xi E Exx E Ij B.B.Bx.B. x

=Jx |nx E {S n *

Thus, in the area of implementation of official language

policy also FSNL is exhibiting a remarkable
performance.

Ei xh Gv E li :-

GRIEVANCE REDRESSAL MECHANISM WITH

STATUS

(+) Vx Ei xh-

(A) PUBLIC GRIEVANCE REDRESSAL

B.B.Bx.B. Vx Ei E xh i BE ji VxEi ij E l{x E l n *

A 3-Tier Grievance Redressal Machinery has been

formulated by FSNL for redressal of Public Grievances.

+Vx E V Mi i xMx E B z <E<

E Mi {] Ei {] J M * |{i Ei E
xEi +vE E ={li |iE G E Ei
{V xE {iE E {`Ei E Vi *

A Grievance Box has been kept at the reception

counter of the Units/Corporate Office for easy
accessibility of these boxes to the Public. The
Grievances so received, are endorsed in a register
called Grievance Register on every Friday in the
presence of Public Grievance Officers, nominated for
this purpose.

Ei E S { xh i +Vx ES V
, +{x Ei, +vE in{xi <E< |J/xMx
E E |Sx M E |J in{xi xMx E
J |vE E { G: B.B.Bx.B.E ix Sh
+{x o]Eh/S J Ei * |iE Sh xvi
E +n V n Vi * n E Sh +i] H
E =k i] x x E n +{x +{ |v xnE
E Ei *

For smooth redressal of one's grievance the employee

or even any one from Public could approach FSNL
under 3 stages beginning with its Public Grievance
Officer, then the Unit Head/HOD of Operations at
Corporate Office & then CGM at Corporate Office. At
each stage he is responded within a stipulated time
schedule. In the event the aggrieved person is not
satisfied with the reply at any stage, he can make his
appeal to the Managing Director.

|v xnE u 3 Sh |vEi +vE u E<

E h Ei 15 nx E +n vi EiEi E
=E +{ { +{x xh +Mi Ei B |i EM*

The MD, after examining the actions taken by the

authorities at the above 3 stages, would analyze the
grievances & communicate his decision to the
concerned complainant within 15 days of the receipt of
the appeal.
No Public grievance was received during the year
2014-15.

2014-15 +Vx Ei nV x E M< *

() ES M Ei xh:ES M Ei, n E< i E li xi: =
<E< i { E Vi , B Ei V xMx |vx
E i{ E Vi E li , P B |vx Ei E
+{x l E +x-x `E E xnx E
Vi *
<xE + x ES vi Ei
V BE <E< +x <E< lxxih E +{Ii

(B) STAFF GRIEVANCE REDRESSAL:The staff grievances, if any, are normally resolved at the
unit level. Such grievances which need intervention of
Corporate management, are taken up by the Unions
with the Management at the Joint Forum Committee's
meetings and the grievances are resolved across the
table.
Apart from these, the usual staff grievances relate to
transfer from one unit to another, which are resolved
depending upon the requirements at opportune
17
00

B B Bx B/ F

S N L

={H { x Ei * k 2014-15 E |
j BE Ei E l il E 8 Ei E nx nV
E M<, 2014-15 E nx 9 Ei E xh E M
+ < |E k 2014-15 E +i iE E |E E
Ei i x *

moment. There was only one such grievance

outstanding at the beginning of the financial year 201415, and a total number of 8 grievances were received
during the year. The total number of grievances
redressed during the year 2014-15 was 9, and thus, no
such grievance was pending at the end of the financial
year 2014-15.

xME /S] :-

CITIZEN CHARTER :-

B B Bx B x lx E Sxri E { Ex i

A Citizen's Charter has been formulated by FSNL by

adopting the Seven Step Module, representing a

xME/OE lx E +{I i + E xE,

systematic effort to focus on the commitment of the

VxE, E{ il {, M-nE B +M,

Organizations towards its Citizens/Clients in respect of

Standard of Services, Information, Choice and

Ei xh, ]S il p i x E {|I

Consultation, Non-discrimination and Accessibility,

xME/OE E |i lx E Sxri { vx Epi

Grievances Redress, Courtesy and Value for money,

Ex E B BE li | E |ixvi Ex i Sh

including expectation of the Organization from the

Citizen/Client for fulfilling the commitment of the

|ix +ME E BE xME vE jr E *

Organization.

El + E l x =i{cx El:-

Prevention of sexual harassment of women at work

place:-

+{E E{x +{x E E =xE EIj Ii

Ii { ={v Ex E B |ir , CE M`x
E +z + i{h *

Your company is committed to provide a safe and

secure environment to its women employees across its
functions, as they are integral and important part of the
organization.

El { + E x =i{cx E El E E{x
BE i E M`x E + *
Ivx E nx E |E E Ei nV x E
M< , Ei E J xE nV E M< , i
xE Ei |inx i E *

There is a Committee in the company for prevention of

sexual harassment of women at work place.
No complaints were received by the committee during
the year under review. Since the number of complaints
filed during the year was NIL, the committee prepared a
NIL complaints report.

+vx 2013 E v 22 El + E l x
=i{cx (El, xv B xh) E +x{x E Vi *

This is in compliance with section 22 of the Sexual

Harassment of Women at Workplace
(Prevention,Prohibition and Redressal) Act, 2013.

i{h O +n E {h xE x
u :-

SIGNIFICANT AND MATERIAL ORDERS PASSED

BY THE REGULATORS OR COURTS:-

xE/x u E< lE/i{h +n O E

{h i x E M , VE Eh E{x E
|Sx =E li B n E |i E*

There are no significant material orders passed by the

Regulators / Courts which would impact the going
concern status of the company and its future operations.

18
00

B B Bx B/ F

S N L

Sx |tME E {:B.B.Bx.B. E Sx |tME M (+<..B.b

) E l {h VVi , +ivE >V E nIi
{h B ti >V E J{i Si E +Oh *
+<{ 6 {x E *
I E i{h VxE E B.B.Bx.B.
]M], ]x] 80 E l{i E , I ={E
E u +xvEi P{` E E Jx E l
El n *
|r E{x ] il +<{ 6 | E i
x]E ={Eh { i VVi *
{ 1 Bb+x <E< E ={M <x]x] ExCx E v
iE {S Vi *
<E< { 1 ={M Ex E B B Bx B S+
xV x]E E l{i Ex E Vx x *
B.B.Bx.B. +{n ilx (E) l l{i Ex
E Vx x *
E{x E <] xn+ E lx n Vi *
E{x E i <E< +xvEi P{` E El E
, ]M], ]x] 40 E +<{ 6 E
Oh E M *
B.B.Bx.B. x Sx E +vE +vx E v
4(1)(J) E +x +{Ii 17 z |E E
xx+/x/SUE E x vi
|E]Eh E ii {h VxE E +x{x
+{x <] fsnl.nic.in { xi +Pi VxE
|Ei Ei *

Information Technology Initiative: FSNL IT Deptt is equipped with (IBMBLADE SERVER)

The servers are highly energy efficient and
leading to saving in power consumption.
The servers are IPv6 complied.
FSNL places importance to information security issues
by installing Firewall Fortigate Fortinet 80C. The
security appliances Firewall is also in place to prevent
unauthorized intrusion.
All network equipment like Routers from renowned
company and totally ready for Ipv6 Migration.
Units are accessing server through internet connection
to use SAP B1 Addons.
FSNL is planning to install virtual private network for
using SAP B1 from units.
FSNL also planning to install Disaster Recovery Site.

Tenders are hosted on Companys Website.

The IPv6 complied, Firewall, fortigate, fortinet, 40C has
been installed at all units to prevent unauthorized
intrusion.
FSNL has compiled the information under 17 different
templates/manual/manuals for voluntary/suo-moto
disclosure as required under Section 4(1)(b) of the RTI
Act 2005 and hosted the same on companys website
fsnl.nic.in and the information so published are being
regularly updated.

ES E h ():-

PARTICULARS OF EMPLOYEES:-

x 5(2 B 3) E{x (xH B |vE EE xn)

2014 E ii E{x E ES E x il +x ii
h |ii E Vx +E x CE k
2014-15 E{x E E ES x xvi V E
=Ji x 5(2) =Ji +vE {E |{i
E *

The Statement showing the names and other particulars

of the employees of the company as required under
Rule 5 (2 & 3) of Companies (Appointment and
Remuneration of Managerial Personnel) Rules, 2014 is
not required to be furnished since none of the
employees of the company has received remuneration
in excess of the remuneration mentioned in the above
mentioned Rule 5 (2) during the financial year 2014-15.

xnE b:xnEMh:i E, <{i j E {j GE- 1(1)/2014

.B.B.nxE 22 n 2014 E u b.. E
E.B.xp xl(b+<Bx:06892278) xnE <{i j,
i E E lx { xnE E { xH E M *

BOARD OF DIRECTORS:DIRECTORS:Govt. of India, Ministry of Steel, vide letter no:

1(1)/2014-BLA dated 22nd December,2014 appointed
Shri D.B.Singh. in place of Shri K.S.Samarendra Nath
(DIN: 06892278), Director, MOS, GOI.

19
00

B B Bx B/ F

S N L

inx nxv (b+<Bx:03619886) xnE <{i

j, i E E +iH xnE E {
E.B.xp xl (b+<Bx:06892278) <{i j, i
E E lx { xH E M* b.., xnE {n
E vi Ei +M E `E E {x iE {n { x
M B {x: xH E M *

Accordingly,Shri Deen Bandhu Singh, (DIN:03619886)

Director, MOS, Govt. of India, has been appointed as
additional director on the board of the company in place
of Shri K.S.Samarendra Nath (DIN: 06892278),
Director, MOS, GOI. Shri D.B.Singh shall hold office till
the conclusion of the ensuing Annual General Meeting
of the company and being eligible offers himself for
re-appointment.

j E nxE 5 , 2015 E +n 11(1)/2015- B

B E u |v xnE E {n { xH x E {h-{
V ]]S (b +< Bx: 07091356) x 09.02.2015 E
| |v xnE E {n E | , xp Eh
j{` (b +< Bx: 01016520) E{x E +vI E { |v
xnE B.B.Bx.B. E +iH | nxE 08.02.2015
iE * ]]S E xH xiEh E +M
E + `E J VM*

Consequent upon appointment as Managing Director

vide letter no: 11(1)/2015-BLA dated 5th
February,2015, Shri Rajib Bhattacharya (DIN:
07091356) took over as Managing Director w.e.f.
09.02.2015. Shri Shailendra Krishna Tripathi,
(DIN:01016520), Chairman of the company was holding
additional charge of the post of Managing Director,
FSNL, upto 08.02.2015. Appointment of Shri
Bhattacharya shall be placed before the ensuing annual
general meeting for regularization.

n (b +< Bx: 03212787) xi xnE

B.B.].. ]b Gi li E +x{ +M E
`E iE {n { M B {x: xH E M *
|xE <{i j u ij xnE E { E E
xH x Ex E Eh, ix ij xnE E 2 {n H
il ij xnE E b xH E{x E xjh x *

Shri Bam Bahadur Singh, (DIN: 03212787) nominee

Director of MSTC Ltd., shall retire by rotation.

xnE hb E.B.xpxl u E{x E xnE E

{ {nv E nx =xE =Jx B +xEh Mnx
E J p Ei *

Your directors place on record their deep appreciation of

the valuable contributions made by Shri K. S.
Samarendra Nath during his tenure as director of the
company.

x-xH xnE E I{i VxE :-

BRIEF INFORMATION OF THE NEWLY APPOINTED

DIRECTORS:-

V ]]S (b+<Bx:07091356) E j E +n
GE 11(1)/2015-.B.B. nxE 05/02/2015 E +x |v
xnE E {n { xH E M *

Shri Rajib Bhattacharya (07091356) is appointed as

Managing Director of the company vide order no: 11(1)/
2015-BLA dated 05/02/2015.

i E E {j GE 1(1)/2014 .B.B. nxE 22

n 2014 E u nxv (b+<Bx:03619886)
xnE, <{i j E E.B.xp xl
(b+<Bx:06892278)xnE <{i j, E lx { xH
E M *

Shri Deen Bandhu Singh, (DIN:03619886) Director

MOS, Govt. of India, Ministry of Steel has been
nominated by Govt. of India, Ministry of Steel vide letter
no: 1(1)/2014-BLA dated 22nd December, 2014 in place
of Shri K. S. Samarendra Nath (DIN: 06892278),
Director, MOS, GOI.

|J |vE EE i{{h {ix:-

Change in Key Managerial Personnel :-

E{x E +vI xp Eh j{` (b+<Bx: 01016520)

E { nxE 08-02-2015 iE |v xnE E {n E +iH
| l* nxE 09.02.2015 | - V ]]S
E |v xnE E {n { xH E M *

Shri Shailendra Krishna Tripathi, (DIN:01016520),

Chairman of the company was holding additional
charge of the post of Managing Director, FSNL, upto
08.02.2015. Shri Rajib Bhattacharya has been
appointed as the Managing Director of the company
w.e.f. 09.02.2015.

Presently the position of two independent directors are

vacant as no one has been appointed by the
Administrative Ministry and the appointment of the
independent directors on the Board are beyond the
control of the company.

20
00

B B Bx B/ F

S N L

J {IE:-

AUDITORS:-

E{x +vx 2013 E v 139 E {`i E{x +vx

2013 E v 129(4) |nkH E +vE E ii xjE B
J {IE i E x, +O B { xn
J{ E Ivx +v E vxE J {IE E
{n { xH E*

In pursuance of the powers conferred by Section 139 of

the Companies Act,2013 read with section 129(4) of the
Companies Act,2013, the Comptroller & Auditor
General of India appointed M/s Agrawal & Pansari,
Chartered Accountants as the Statutory Auditor of the
Company for the period under review.

k 31 S 2015 E {i { vE J {IE E
u |ii J |inx E < |inx E |{j +xMxE II
n M *

The Statutory Auditors Report on the Accounts of the

Company for the financial year ended on 31st March,
2015 is placed at Annexure II and forms part of this
report.

E{x +vx 2013 E v 143(6)B (7) E ii xjE B

i E J {IE u 31 S, 2015 E {i E
B E{x E J+ { ]{{h E < |inx E +xMxE
III n M *

The comments on the accounts for the year ended 31st

March 2015 by the Comptroller & Auditor General of
India under Sec 143(6) & (7) of the Companies Act,2013
is placed at Annexure III and forms part of this report.

S J {IE:-

SECRETARIAL AUDITORS:-

E{x +vx 2013 E v 204 il {`i x 9 E{x

(xH, |vE EE E {E) x 2014,E{x
+vx 2013 E x E |vx E +x Vi
(.{.GE 11169, B..B.30311)+i E{x S
E E{x E S J {IE E { xH E M *
S J {I {] xnE E |inx E BE
+xMxE IV E { Mx *

Pursuant to the provisions of Section 204 of the

Companies Act, 2013 read with Rule 9 of the
Companies ( Appointment and Remuneration of
Managerial Personnel) Rules, 2014 of the Companies
Act,2013 and the Companies has appointed Shri
SAUMAYO JYOTI SEAL ( C.P. No: 11169, ACS. 30311)
Company Secretaries to undertake the secretarial audit
of the company. The Secretarial Audit Report is
annexed herewith as Annexure IV and forms part of this
report.

S J {I E ]{{h/+Ex/+H S
+ +x Exx +x{x { {] k 2014-15
iliE x E + <B E {]Eh
]{{h E +Ei x *

The qualifications, reservations remarks or disclaimers

in the Secretarial Auditors Report on Secretarial and
other applicable legal compliances for the financial year
2014-15 are factual statement and hence does not
require any explanations or comments.

+iE {IE:-

INTERNAL AUDITORS:-

+i Bxb E{x, S]b BE=x]], +E E

Bxb B], S]b BE=x]] il BS.Bx.|vx
Bxb E{x S]b BE=x]] E{x E +iE J {IE E
E E x{nx Ei il - { =xE u |ii
E M |inx E J {I i u I E Vi *

M/s. Awatar & Co. Chartered Accountants, M/s Ashok

Kumar Sharma & Associates, Chartered Accountants
and M/s. H.N.Pradhan & Co. Chartered Accountants
performs the duties of internal auditors of the company
and their report is reviewed by the audit committee from
time to time.

xnE b E =kni:E{x +vx 2013 E v 134(3)()E |vx E

+{Ix, E{x E |Sx |vx il J k +vE
|{i +nx E +v { xnE b xxJi x
Ei :-

DIRECTORS RESPONSIBILITY STATEMENT:Your Directors make the following statements in terms

of Section 134(3)(c) of the Companies Act, 2013 based
on the representations received from the operating
management and Chief Financial Officer of the
company:
21
00

B B Bx B/ F

S N L

E) E J i Ei H M J xE E { i
+x{x E M B V <x xE ]E E< E
M< , =Si {]Eh nB MB *

a) That in the preparation of the annual accounts, the

applicable accounting standards have been followed
along with proper explanation relating to material
departures;

J) xnE x B JEx xi E Sx E + =xE

Mi +xh E < i E =Si xh B +xx
i E V iEMi B E{x E E E k
E +xi il =H +v E{x E E +
]E i |E] i *

b) That your Directors have selected such accounting

policies and applied them consistently, and made
judgment and estimates that are reasonable and
prudent so as to give a true and fair view of the state
of affairs of the company at the end of the financial
year and of the profit of the company for that period;

M) xnE x E{x E {k E I E i B vJvc

B +x +xi+ E Ex {i Mx i E{x
+vx 2013 E |vx E +x{ =Si J +J
E JJ i =Si + {{i J J *

c) That your Directors have taken proper and sufficient

care for the maintenance of adequate accounting
records in accordance with the provisions of this Act
for safeguarding the assets of your company and for
preventing and detecting fraud and other
irregularities;

v) xnE x E J V E E +v { i E
*
b) xnE x |V Exx |vx E +x{x E
xSi Ei B =Si |h i E il
|h =Si B | fM E E *

d) That your Directors have prepared the annual

accounts on a going concern basis;
e) that your Directors had devised proper systems to
ensure compliance with the provisions of all
applicable laws and that such systems were
adequate and operating effectively

E h E xE :-

EXTRACT OF ANNUAL RETURN:-

E hE E B.V.].9 i E l =nPi
E+xMxE V Mx E n M *

The details forming part of the extract of the Annual

Return in form MGT 9 is annexed herewith as
ANNEXURE V.

J {IE i:-

Audit Committee:-

E{x H ij xnE E {n { xH |nx E

E{x i E {E E xxi |xi -SE
ij xnE E xH E{x E xxjh x *

Your company is pursuing with the Government of India

for the appointment of independent directors against
vacancies and the appointment of directors are beyond
the control of the company.

+{E b x ij xnE E +x{li Vn xnE

E BE J {I i E M`x E V E j
u ij xnE E xH { {xM`i E VM*

Your Board has constituted Audit Committee in the

absence of the independent directors with the existing
directors which shall be reconstituted on induction of
independent directors on the Board by the Ministry.

E{] VE ni:t{ E{x +vx 2013 E{] VE ni E

|vx E M , E{x x { VE M x l
E{x < M`x E S E { E *

CORPORATE SOCIAL RESPONSIBILITY:Even though the provisions of Companies Act, 2013

regarding Corporate Social Responsibility are not
attracted to the company yet the Company has been,
over the years, pursuing as part of its corporate
philosophy.

B.B.Bx.B. x i E z V I, J, Gc
vi E E Miv, SEi, l B nJ,
{h I, +v Sx B xME v E B

FSNL has been undertaking various activities across

different States of India in the areas of Education,
Development of Sports activities, Medical Health &
Hygiene, Environmental Protection, Infrastructure &
22
00

B B Bx B/ F

S N L

Ei E E, |EiE |E{ |i Vx E {x - E
k i i SU i +x B SU
t +x E Ij z Miv B GE{ E
+vOi E + *
E{x H ij xnE E {n { xH |nx E
E{x i E {E E xxi |xi -SE
ij xnE E xH E{x E xxjh x *

Your company is pursuing with the Government of India

for appointment of independent directors against
vacancies and the appointment of directors are beyond
the control of the company.

+{E b x ij xnE E +x{li Vn xnE

E E BE E{] VE ni xMx i E
M`x E * E{] VE ni xMx i E
+x { E{] VE ni xi (.B.+.xi)
E E{x u +MEi E M *

Your Board has constituted a Corporate Social

Responsibility Monitoring Committee in the absence of
the independent directors with the existing directors.
Based on the recommendation of the CSR Committee a
Corporate Social Responsibility Policy (CSR Policy) of
the Company has been adopted.

E{x E B + xi, E{x E <]

The CSR Policy of the company is available on the

website of the company at www.fsnl.nic.in.

.B.+ E Miv E E |inx +xMxE VI E

{ Mx *
xEx + E{x E {E xi:-

The Annual Report on CSR activities is annexed

herewith as Annexure VI.

Civic Amenities, Development of Art & Culture,

Financial Assistance for rehabilitation of affected
people of natural calamities, apart from Swachh Bharat
Abhiyan & Swachh Vidyalay Abhiyan.

www.fsnl.nic.in { ={v *

B.B.Bx.B. VxE Ij E ={G x E ii E{x

+vI i |v xnE, E xi xnE B +x
xnE Vx BE {n xj E{x u xi E UcE
+x {n { Sx + xH <{i j i E
u E Vi * E{x E E |E E xH +{ni
Ex E +vE x *

NOMINATION AND REMUNERATION POLICY OF

THE COMPANY:FSNL, being CPSE, the selection and appointment of
directors including Chairman, Managing Director, Govt.
Nominated director and other directors except one
nominee director by holding company are being
appointed by the Ministry of Steel, Govt. of India.
Company is not having any power to induct or remove
any of them.

VxE Ij E E{x x E Eh E{x x b.{.<.E

{E vi MnE E |xE j E
+xnx +{x M E P E ES E +MEi
E il |xE j E +xnx E l E{x E u
xi |{i E E P E l Vn ix E v
+xv E Gxx E M *

Being the public sector company, the Company adopts

the DPE Guidelines for remuneration of its nonunionised employees with the approval of the
administrative Ministry. And for unionised employees,
agreement with recognised union for wage agreement
are entered and implemented by the company with the
approval of the administrative ministry.

|v xnE E ixx j u xH |nx Ei

xvi E n Vi *

And, as regard the pay scale of Managing Director, the

same is fixed by the Ministry on appointment.

E{x {E i V M EE xnE E `E
il M E P E E E E x{nx vi
ix E b.{.<. E MnE E ii xvi xh
Ei *

However, Company is having Remuneration

Committee which can decide setting fees of the nonofficial director and the performance related pay for the
non-unionized employees of the company within the
prescribed limit of DPE guideline.

+iE k xjh E {{ii E n k

hE -

ADEQUACY OF INTERNAL FINANCIAL CONTROLS

WITH REFERENCE TO THE FINANCIAL
STATEMENTS:-

E{x +iE xjh E BE | +

E xMx l V E{x E Miv ri,

The company has an efficient and sound system of

internal control to monitor the activities of the company
23
00

B B Bx B/ F

S N L

{]i E l { E I E |{i Ex + k {]M

E {ni xi * ix +iE xjh vxE x,
Exx il E{x E xi + |G+ E +x{x
xSi Ei *

to achieve the business objectives with accuracy, clarity

and transparency of financial reporting. Present internal
control ensures statutory compliance with rules, laws
and regulations with the laid down policies and
procedures of the company.

+xiE xjh |h iji xSi Ex i +xiE

J {I E {ni { V ni B E{x x +xiE
J {I E ij xn J{ E { n M*
+xiE J {I E |inx { Ex +
={SiE ={ n E< , E |vx E |ii E
*

To ensure independence to the internal control system,

internal audit functions emphasizing transparency in the
system and therefore, internal audit of the company is
entrusted to independent external firms of Chartered
Accountants. The reports of the internal audit are
periodically submitted to the management for
improvement, appraisal and remedial measures, if any.

VJ |vx xi:-

RISK MANAGEMENT POLICY:The Company has adopted a Risk Management Policy

to identify and evaluate business risks associated with
the operations and other activities of the Company and
formulated risk mitigations strategies.

E{x x VJ |vx xi E +MEi E V E {

E Sx + +x Miv E l Vc VJ E {Sx
+ =xE Ex Ex il VJ x hxi+ E i
Ei *
] vx xi:-

WHISTLE BLOWER POLICY:-

E{x ] vx xi ES E n SS< E{x

+xiE, +xSi |l+ +l E< +x j]{h +Sh E
+Ex Ei i = J {IE i iE {Sx E
+ |nx Ei il < xi E ii =x ES+ E
J E< |iE HMi E< Ex |vE EE
E |ivi Ei * xi < v E =v M u
V n-xn { +vi *

FSNL has also implemented a Whistle Blower policy for

providing an opportunity to the employees to access in
good faith, to the Audit Committee, in case they observe
unethical and improper practices or any other wrongful
conduct in the company, and to prohibit managerial
personnel from taking any adverse personnel action
against those employees. The policy is based on the
guidelines issued by the Department of Public
Enterprises in this regard.

xi E{x E <] { ={v *

This policy is posted on the website of company.

vi {I n:-

RELATED PARTY TRANSACTIONS:-

E{x + xnE b, |vx, xj E{x in E

S E< iE i{h vi {I n x E M *
JEx xE (B.B.-18)u lM +{Ii |E]Eh E
k, hE E ]{ GE 30 n M *

There have been no materially significant related party

transactions between the Company and the Directors,
the management, the holding company or the relatives.
Suitable disclosures as required by the Accounting
Standards (AS18) has been made in the note no. 30 in
the notes to the financial statements.

xMi +x:-

CORPORATE GOVERNANCE:-

xMi +x E {lE |inx B |vE S-

il h E +xMxE VII E |inx E l Mx
E M *

Separate report on Corporate Governance and

Management Discussions and Analysis are attached
herewith as Annexure-VII and forms part of this Annual
report.

24
00

B B Bx B/ F

S N L

+Ei:-

ACKNOWLEDGEMENT:-

b i{h VxE Ij E BEEi <{i j E ll xV Ij l{i j E OE |{i xE{] lx

E {r Ei * b <{i j i E B V
B +xw|n, UkMg, ZJhb, +c, {S M,
Ex]E, =kJb, il n E E B =x vi
M u B xj E{x B.B.].. ]b E
=xE xi lx B Mnx E B +{x EiYi H
Ei *

The Board records sincere support received from the

valued customers who are Public Sector integrated
steel plants as well as Private Sector steel plants. Board
also express gratitude to the Ministry of Steel and other
department of Govt. Of India and State Govt. of Andhra
Pradesh, Chhattisgarh, Jharkhand, Orissa, West
Bengal Karnataka,Uttarakhand and Delhi for their
continued support and guidance and our holding
company MSTC limited.

xnE b E{x E =q E |{i i E i

ES E Mnx E x E +H Ei *

The Board of Directors appreciates the contribution of

all the employees at all levels towards attainment of
Companys objectives.

i B xnE b E + *
lx: x< n
nxE: 10/09/2015

For and on behalf of Board of Directors

B.E.j{`
+vI

Place: New Delhi

Date : 10/09/2015

25
00

B B Bx B/ F

S N L

S.K.Tripathi
Chairman

xnE E |inx E MxE-1

>V Ih, iExE +h, n p ={Vx il xM

E{x +vx, 2013 E v 134 E +iMi E{x (J) x 2014 E ii >V Ih, iExE +h n
p ={Vx il xM +n v Sx E +{Ii |E]Eh*
(E). >V Ih
(1) >V E Ih { | bx E B
>V Ih i i { |lEi E l ii vx
=`B MB En
n M* >V Ih il >V E +vEi ={M i,
(2) >V E E{E ji E ={M E B
xi xMx, JJ + ih |h v B i
E{x u =`B MB En
{Sx iExE E v { E E V *
(3) >V Ih ={Eh { {V x;
>V B <vx E J{i
<E< (E
])
ti

1037110

S
E Mi

|i <E<
{

6071504

5.85

<E<(E
])
1105891

{
E Mi
6613331

|i <E<
{
5.98

|i <E< J{i
=i{n - B <{i
G{

xE (n E< )
+|V

S 2014-15
2.09

Mi 2013-14
2.85

(J) iExE
(i)

|vME i EB MB |

(ii)

=H | V =i{n +r, Mi E,
=i{n =ilx, +i |il{x +n E {h
{ |{i
n +ii iExE (k E +
Mhi Mi 3 E nx +ii)
B) +ii |vME E h
) +i E
) C |vME {h {h +i
E M *
b) n {h +i x i Ij V
< x E M =E C Eh *

(iii)

(iv)

|vME E +vix E Vx ii |G , E{x E u

x|ix i +h E +xEx |G E Vi *
={H+ E +Eix, +E v E xB
i E Ei Ex E Mi | E V *
E{x x 10 B B E +E E G{ <x E <xSx]
E Ei Ex i il |ME j E <i
E {Ih E M*
xE

+xvx B E { E M E h +M Mx E M *
26
00

B B Bx B/ F

S N L

ANNEXURE I TO THE DIRECTORS REPORT

CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE EARNING AND OUTGO ETC :
Information on conservation of Energy, Technology absorption, Foreign Exchange earnings and outgo required to be disclosed
under Section 134 of the Companies Act, 2013 read with Companies (Accounts) Rules, 2014 are provided hereunder
(A) CONSERVATION OF ENERGY :
Energy conservation continues to receive priority
attention at all levels. All efforts are made to conserve
and optimise use of energy with continuous
monitoring, improvement in maintenance and
distribution systems and through improved
operational techniques.

(i) The steps taken or impact on

conservation of energy :
(ii) The steps taken by the Company for
utilising alternate sources of energy
(iii)The capital investment on energy
conservation equipments;
POWER AND FUEL CONSUMPTION :
CURRENT YEAR
UNITS(KWH)
Electricity

1037110

Total Cost

PREVIOUS YEAR
` Per Unit

UNITS(KWH)

Total Cost

` Per Unit

5.85

1105891

6613331

5.98

6071504

CONSUMPTION PER UNIT OF PRODUCTION :

Standards (if any)

Product : Iron & Steel

Scrap

Current Year

Previous Year

2014-2015

2013-2014

N.A.

2.09

2.85

(B) TECHNOLOGY ABSORPTION :

(ii)

The efforts made towards technology

absorption

Updation of Technology is a continuous process,

absorption implemented and adapted by the
Company for innovation.Efforts are continuously
made to develop new avenues for improved
services required by Customers.

The benefits derived like product

improvement, cost : reduction, product
development or import substitution.

The Company has been able to successfully

developed Fe enrichment of Scrap fines below
10mm size. The Pilot Plant for the same was
commissioned tests were carried out.

In case of imported technology

(imported during the : last three years
reckoned from the beginning of the
financial year)
(a) the details of technology imported
(b) the year of import;
(c) whether the technology been fully
absorbed
(d) if not fully absorbed, areas where
absorption has not taken place, and the
reasons thereof

NIL

Separately attached

The expenditure incurred on

Research and Development:

27
00

B B Bx B/ F

S N L

+ Bhb b {
(+)
()
()
(n)

(` J
2014-15
7.51
15.38
22.89

{VMi
+i
M
+ Bxb b E E ]x+ E |ii

() n p ={Vx il xM: ({ J )
2014-15

n p +Vx
n p E

xE
xE

i B xnE b E + *
B.E.j{`

+vI

lx: x< n
nxE: 10/09/2015

28
00

B B Bx B/ F

S N L

2013-14

xE
24.13
24.13

(` J
2013-14

xE
9.64

EXPENDITURE ON R&D:

( ` In lakhs)
2014-2015

a.
b.
c.
d.

Capital
Recurring
Total
Total R & D expenditure

7.51
15.38
22.89

As percentage of total turnover(%)

2013-2014
NIL
24.13
24.13

( ` In lakhs)

(C) FOREIGN EXCHANGE EARNINGS AND OUTGO :

2014-2015

2013-2014

Foreign exchange earning

NIL

NIL

Foreign exchange outgo

NIL

9.64

For and on behalf of Board of Directors

S.K.Tripathi
Chairman
Place : New Delhi
Date : 10/09/2015

29
00

B B Bx B/ F

S N L

xnE E |inx E MxE-II

ij J {IE E |inx
G{ xM ]b E n E |i
k h E |inx
x G{ xM ]b (E{x) E Mi k h E J {Ih E V nxE 31 S 2015 E ix-{j il {i
k E B B x h, xEn | h B i{h J xi il +x JiE VxE E E
*
k h E B |vx E Vn
E{x E xnE b <x k h E i Ex E v E{x +vx 2013 +vx E v 134(5) nB MB E
B =kn V i vhi Ei J ri i E{x (J) x, 2014 E x 7 E l {`i +vx E v
E +iMi ] J xE E v k li, k |nx, xEn | E i B {] o]Eh |nx Ei * <x Vn
E{x E {{k E I B vJvc il +x +xii+ E Ex B {i Mx, ={H J xi E Sx B M
Ex, xh x B +xx Mx V iE Mi + E{h , B {{i +iE k xjh E x], Exx B
JJ V J Eb E ii B { Ex E xSi Ex E B | { {Si l, k h E i
Ex E B | { {Si l, k h E i Ex r B i Ex, V i B x{I |nx
Ei B iiE Mi H , S vJvc j] E Eh < *
J {IE E Vn
Vn +{x J {Ih { +vi <x k h { H Ex *
x +vx E |vx, J B +EIh xE il =x E, V +vx E |vx B = xi x E +iMi +EIh
{] Ex E B +{Ii , E E *
x +{x J {Ih E{x +vx E v 143(10) E +iMi xn] JEx xE E +x Si E * =x xE E
B +{Ii E xiE +Ei+ E l +x{x E il =E =Si +x |{i Ex ={ + J {Ih E
E C k h iiE Mi H *
+EIh |G {ri k h E +EIh I B |E]Eh |{i Ex E Vi * Sxi |GB
C vJvc j] E V k h E iiE Mi E VJ E xvh i J {IE E xh { x Ei
=x VJ E +Ex Ex J {IE J {Ih |G+ E Sx Ex E =r E{x E i B k h E
x{I |ii E B |ME +iE k xjh { S Ei E {li ={H Exi E{x E +xiE k
xjh E |Ei E k {] { S H Ex E =r E B x * J {Ih ={M E MB JEx xi E
={Hi E Ex il E{x xnE u xvi JEx +xx E iEMii E l-l k h E O |ixvi
E Ex Ex *
E J {Ih I, V x |{i E, J {Ih u k h { E B BE +v |nx Ex
i {{i + lSi *
+i
il =k VxE B nB MB {]Eh E +x ={H k h l-+{Ii fM +vx u
+] VxE ni il i xi: E J xE E l +x{i J B =Si o]Eh |nx Ei :(1) 31 S 2015 E E{x E E - E{ E ix - {j E ,
(2) = il E {i E B E B x E h E il
(3) = il E {i E B xEn | E xEn | h E *
30
00

B B Bx B/ F

S N L

ANNEXURE II TO THE DIRECTORS REPORT

INDEPENDENT AUDITORS REPORT

TO THE MEMBERS OF FERRO SCRAP NIGAM LIMITED

REPORT ON THE FINANCIAL STATEMENTS

We have audited the accompanying financial statements of Ferro Scrap Nigam Limited (the Company), which comprise the
Balance Sheet as at March 31, 2015, the statement of Profit and Loss, the Cash Flow Statement for the year then ended and a
summary of significant accounting policies and other explanatory information.

MANAGEMENTS RESPONSIBILITY FOR THE FINANCIAL STATEMENTS

The Companys Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (the Act) with
respect to the preparation and presentation of these financial statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with the accounting principles generally accepted in India
including the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules,
2014.This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for
safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of
appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and
maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of
the accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and are
free from material misstatement, whether due to fraud or error.
AUDITORS RESPONSIBILITY
Our responsibility is to express an opinion on these financial statements based on our audit.
We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be
included in the audit report under the provisions of the Act and the Rules made thereunder.
We conducted our audit in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those Standards
require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the
financial statements are free from material misstatements.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The
procedures selected depend on the auditors judgment, including the assessment of the risks of material misstatement of the
financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control
relevant to the Companys preparation of the financial statements that give a true and fair view in order to design audit procedures
that are appropriate in the circumstances, but not for the purpose of expressing an opinion on whether the Company has in place an
adequate internal financial controls system over financial reporting and the operating effectiveness of such controls. An audit also
includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by
the Companys directors, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the
financial statements.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid financial statements,
give the information required by the Act in the manner so required and give a true and fair view inconformity 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 March 31,2015;
(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.

31
00

B B Bx B/ F

S N L

+x vE il xE +Ei+ { |inx
1.

V E E{x +vx 2013 E v 143 E ={-v (11) E i i E Exp E u V E{x (J {IE E

|inx) +n, 2015 E ii +{Ii , MxE + +n E +xSUn 3 il 4 hi { BE h ni *

2.

E{x +vx E v 143(5) E +vx i E xjE B JE u V xn il ={xn E +x =x {

]{{h E l B E M< E< il Ji { | E MxE n M *

3. V E +vx 143(3) E ii +{Ii , Si Ei E:-

(E) x VxE il {]Eh E |{i E V J {Ih E =r VxE il E B

+E l*
(J) S V E Exxx +{Ii , E{x x Si J Ji+ E J , V E =x -Ji E +
iE E {Ih |E] i *

(M) < |inx E l Vi ix-{j, x E h il xEn | h J E +x *

(P) S ={H k h E{x (J) x, 2014 E x 7 E l {`i +vx E v 133 E +vx xn]
J xE E l +x{x E M *
(b)

31 S 2015 E x xnE Ji { |{i +nx E xnE b u Eb { E +v { 31 S

2015 E E{x +vx E v 164(2) E n E< xnE, xnE E { xH EB Vx +M Pi x *

(S) il =k VxE B nB MB {]Eh E +x E{x (+EIh B +EIE) x, 2014 E x

11 E +x J {IE {] EB Vx +x E v xxx Si Ei E:(1) E{x x i E +{x k li { {cx | E k h J E -k h
i n ]{{h .28*
(2) E{x u xE] O xEx n E< , + nPEx `E i b] E]C] { (V E M
Exx J xE E ii +E ), |vx E M *
(3) E{x u xE I B I xv lxii E Vx +{Ii E v E< E P]x x
{< M<*
Ei +O B {
xn J{
{Vx GE 003350
B . E.+bx
{]x
ni GE-401080

32
00

B B Bx B/ F

S N L

Report on other Legal and Regulatory Requirements

1. As required by the Companies (Auditors Report) Order, 2015, issued by the Central Government of India in term of sub-section
(11) of section 143 of the Companies Act,2013, we give in the Annexure A statement on the matters specified in the paragraphs 3
and 4 of the Order, to the extent applicable.
2. As required by Section 143(5) of the Act, the Comptroller and Auditor- General of India issued Directions and sub directions. We
give our comments thereon, action taken and impact on the accounts, in the Annexure B.

3. As required by section 143(3) of the Act, we report that:

a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were
necessary for the purposes of our audit.
b) In our opinion proper books of account as required by law have been kept by the Company so far as it appears from our
examination of those books.

c) The Balance Sheet, the Statement of Profit and Loss, and Cash Flow Statement dealt with by this Report are in agreement with
the books of account.
d) In our opinion, the aforesaid financial statements comply with the Accounting Standards specified under Section 133 of the Act,
read with Rule 7 of the Companies (Accounts) Rules, 2014.

e) On the basis of written representations received from the directors as on 31 March, 2015, taken on record by the Board of
Directors, none of the directors is disqualified as on 31st March, 2015, from being appointed as a director
in terms of Section 164(2) of the Act.
f) In our opinion and to the best of our information and according to the explanations given to us, we report as under with respect
to other matters to be included in the Auditors Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules,
2014:
i. The Company has disclosed the impact of pending litigations on its financial position in its
financial statements Refer Note No. 28 to the financial statements ;
ii. The Company has made provision, as required under the applicable law or accounting standards, for material
foreseeable losses, if any, and as required on long-term contracts including derivative contracts.
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and
Protection Fund by the Company.

For AGRAWAL & PANSARI

Chartered Accountants
Registration No. 003350C
CA V K. Adwani
Partner
Membership No.: 401080

Place: Raipur.
Date:03/06/2015.

33
00

B B Bx B/ F

S N L

ij J {IE E |inx E MxE +

31

S 2015 E {i E k h { E{x E n E ij J {IE E {] E +iMi +xSUn ni,

Si Ei E:1.(E) E{x x l< +i E jiE il +li i {h h ni B Si +J xB J *

(J) n M VxE + {]Eh E +x E{x x +{x l< +i E iE i{x HH +i E

il B iE i{x il J {iE E< M Mi nV x E M< * l< +i E iE i{x
E +vEi |G E{x E +E il <E |Ei E v =Si *
2.(E)

n M< VxE + {]Eh E +x i-S E E nx =Si +i |vx u iE i{x E

M*
(J) + n M< VxE B {]Eh E +x, |vx u |H i-S E iE i{x E |G E{x
E +E il <E E E |Ei E v iEMi il {{i *
(M) E{x i-S E Si +J xB Ji * iE i{x { {< M< Mi E{x E |Sx E |Ei
E nJi B iiE x l, il J Ji+ < Si { Vi E M *
3.

V E Si E M , E{x x B E E{x, , +l +x E {] E @h x n , VE Jx E{x

+vx E v 189 E +iMi +i *

4.

S il n M< Sx B {]Eh E +x, l< +i E G B E G E B E{x E +E il

<E E E |Ei E +x{ BE {{i +iE xjh |h il J {Ih E nx +iE xjh E<
c J nJx E x *

5.

E{x x Vxi E< V x E E *

6.

Exp E x +vx E v 148 (1) E +iMi Mi +J E J J xvi x E *

7.

(E) n M< Sx+ + {]Eh E +x + J E {I E +v { x { E{x E nx

+ni vxE n V E E]i u/J Ji+ ={Vi xv i, G E, +E, Bbb
]C, {k E, E, E] b], ={E + +x M i{h vxE n xi { ={H +vE E {
V EB Vi *
n M< VxE + {]Eh E +x E +i n x E il U: +vE +v E B E< +ni
vxE E x l*
(J) n M< VxE + {]Eh E +x, xxJi +E, G E, E il Bbb ]C, vxE E,
V E n E Eh n , E{x u V x EB MB *
34
00

B B Bx B/ F

S N L

ANNEXURE A TO THE INDEPENDENT AUDITORS' REPORT

The Annexure referred to in our Auditors Report to the members of the Company on the financial Statements for the year ended
31 March 2015, we report that:
1. (a) The Company has maintained proper records to showing full particulars including quantitative details and situations of fixed
assets.
(b) As per the information and explanations given to us, the fixed assets of the Company have been physically verified by the
management at reasonable intervals and no serious discrepancies between the book records and physical verification were
noticed. In our opinion, this periodicity of physical verification is reasonable having regards to the size of the company and the
nature of its fixed assets.
2. (a) As per the information and explanations given to us, the inventories have been physically verified by the management at
reasonable intervals during the year.
(b) In our opinion and as per the information and explanations given to us, procedures of physical verification of inventory followed
by the management are reasonable and adequate in relation to the size of the Company and nature of its business.
(c) The Company is maintaining proper records of inventories. In our opinion, discrepancies noticed on physical verification of
inventory were not material in relation to the operations of the Company and the same have been properly dealt with in the
books of account.
3.

As per information furnished, the company has not granted any loans to companies, firms or other parties covered in the
register maintained under section 189 of the Companies Act, 2013 (the act).

4.

In our opinion and according to the information and explanations given to us, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its business with regard to purchase of fixed assets and for the
sale of Service.During the course of audit, no major weakness has been noticed in the internal controls.

5.

The company has not accepted any deposits from the public.

6.

The maintenance of cost records has not been prescribed by the Central Government under section 148(1) of the Act.

7.

(a) According to the information and explanations given to us and the records examined by us, amounts deducted/accrued
in the books of account in respect of undisputed statutory dues including Provident Fund, Sales Tax, Income tax, Value
Added Tax, Wealth tax, Service Tax, Custom duty, Cess and other Material Statutory Dues wherever applicable, have
been regularly deposited during the year by Company with the appropriate authorities.
According to information and explanations given to us, no undisputed arrears of statutory dues were outstanding as at
March 31, 2015, for a period of more than six months from the date they became payable.
(b) According to the information and explanations given to us, the following dues of income Tax, sales tax, service tax and
value added tax have not been deposited by the company on account of disputes:

35
00

B B Bx B/ F

S N L

v E x
k +vx
1994 (E

={v) +tix
vi

k +vx
1994 (E

={v) +tix
vi

E E |Ei J ` +v V vi
+vIE Exp +E
=i{n E VV{ E M
E +x b <E<
EM hbM + {
E (E nE )

63.57

x 2002 +| 2004 +{ |vE (.<.B.].B.].,

EEi)
E +v iE E

+H Exp +E =i{n
E S E +nx
E <E< E
{E + { E
E

1699.25

01.03.2005

E +v iE

k +vx
1994 (E
={v) +tix
vi

+iH +H Exp
+E B =i{n E
{ B E+H,
Exp +E =i{n
E +x u
E <E< i E
E {E +
{

97.00

k +vx

+iH +H, H
+H Exp +E
{ E +nx x{
<E< i E E
{E {

114.96

1994 (E

={v) +tix
vi

k +vx
={v) +tix
vi

+H Exp =i{n B
+E { E M E
+x < <E< EM
-bM {

k +vx
1994 (E
={v) +tix
vi

+H Exp =i{n E B
+E x E M E
+x b <E< i E
EM bM {

1994 (E

V n i

31.01.2008

i 2004
il +| 2005
i 2006

+{ |vE S B
(.<.B.].B.]., EEi)

+H (+{)EEi

2005

i 2004
2005

259.48

374.25

+{ |vE (.<.B.].B.].,
EEi) u E{x E {I {i
+n E E M u
.<.B.].B.] E I {x:+{
E M *

+Mi 2002 Vx 2003

+{ |vE (.<.B.].B.].,
x< n)

< 2004 E S 2007

+{ |vE
(.<.B.].B.]., x< n))

36
00

B B Bx B/ F

S N L

Name of the statute

Nature of dues

Amount
( ` in Lacs)

Period to which the

amount relates
Nov 2002 To Apr 2004

Forum where dispute

is pending

Finance Act,
1994 (ServiceTax
Provisions)
(As amended
upto date)

Service tax on Cargo

Handling Services at
Duburi unit as
demanded by Suptd.
of Central Excise,
Jajpur.(net of payment
made)

63.57

Finance Act,1994
(Service Tax
Provisions)
(As amended upto
date)

Service Tax on
Business Auxiliary
services at Bokaro
unit as ordered by
Commissioner Central
Excise and Customs,
Ranchi

1699.25

Finance Act,1994
(ServiceTax
Provisions)
(As amended upto
Date)

Service Tax on
Business Auxiliary
services at Burnpur
unit as ordered by
Additional
Commissioner Central
Excise and Customs,
Bolpur and Assistant
Commissioner, Central
Excise and Custom,
Asansol

97.00

Finance Act,1994
(Service Tax
Provisions)
(As amended upto
Date)

Service Tax on
Business Auxiliary
services at Burnpur
unit as ordered by
Additional
Commissioner, joint
commissioner of
Central Excise Bolpur

114.96

Sept 2004 To Feb 2005

Appellate Authorities,
CESTAT, Kolkata)(Order
passed in favour of company
by Commissioner (Appeal)
has been appealed by
service tax department
before CESTAT)

Finance Act,1994
(Service Tax
Provisions)
(As amended upto
date)

Service tax on Cargo

Handling Services at
Bhilai unit as
demanded by
Commissioner, Central
Excise and Customs,
Raipur

259.48

Aug 2002 to June 2003

Appellate Authorities,
(CESTAT, New Delhi)

Finance Act,1994
(Service Tax
Provisions)
(As amended upto
date)

Service tax on Cargo

Handling Services at
Duburi unit Demanded
by Commissioner,
Central Excise,
Bhubaneswar.

374.25

May 2004 To Mar 2007

Appellate Authorities
(CESTAT, New Delhi)

Appellate Authorities,
(CESTAT, Kolkata)

01.03.2005 To 31.01.2008 Commissioner,

Ranchi and Appellate
Authorities,
( CESTAT, Kolkata)

Sept 2004 To Feb 2005 & Commissioner

Apr 2005 To Sept 2006
(Appeals), Kolkata

37
00

B B Bx B/ F

S N L

v E x
k +vx
1994 (E

={v) +tix
vi

k +vx
1994 (E

={v) +tix
vi

k +vx
1994 (E

={v) +tix
vi

k +vx
1994 (E

={v) +tix
vi

k +vx
1994 (E

={v) +tix
vi

+c GE
+vx 1947

E E |Ei J ` +v V vi V n i
+H Exp =i{n E B
+E-x E M E
+x b <E<
E EM bM {

226.06

+| 2007 S 2009

+{ |vE
(.<.B.].B.].,EEi)

nM{ <{i j B B
<{i j EM bM
B E {E
{ E

2362.50

+| 2003 S 2008 il
+C] 2003 x 2008

+{ |vE
(.<.B.].B.].,EEi)

+| 2008 < 2009 il

Vx 2009 i 2009
iE

+{ |vE
(.<.B.].B.].,EEi)

nM{ <{i j
EM bM B
E {E {
E

690.48

+H Exp =i{n
x E M E
+x- b <E<
EM bM {

163.09

+| 2009 S 2010

+{ |vE
(.<.B.].B.].,EEi)

+H Exp =i{n E
B +E { E
M E +x nM{
<E< E {E
{ E

178.30

+C] 2009
S 2010

+{ |vE
(.<.B.].B.].,EEi)

+c GE M E
M E +x =E
<E< G E B |
E E B

2002-03

46.50

38
00

B B Bx B/ F

S N L

GE ]x, E]E

Name of the statute

Nature of dues

Amount
( ` in Lacs)

Finance Act,
1994 (ServiceTax
Provisions)
(As amended
upto date)

Service tax on Cargo

Handling Services at
Duburi unit
Demanded by
Commissioner,
Central Excise,
Bhubaneswar

226.06

Finance Act,1994
(Service Tax
Provisions)
(As amended upto
date)

Service Tax onCargo

handling Services and
Business Auxiliary
Services at Durgapur
Steel Plant and Alloy
Steel Plant

2362.50

Finance Act,1994
(ServiceTax
Provisions)
(As amended upto
date)

Service Tax onCargo

handling Services
and Business
Auxiliary Services
at Durgapur Steel
Plant

Finance Act,1994
(Service Tax
Provisions)
(As amended upto
date)

Period to which the

amount relates

Forum where dispute

is pending

April 2007 To March 2009

Appellate Authorities,
(CESTAT, Kolkata)

Apr 2003 To Mar 2008 &

Oct 2003 To Nov 2008

Appellate Authorities,
(CESTAT, Kolkata)

690.48

Apr 2008 To May 2009 &

June 2009 To Sept 2009

Commissioner,
Kolkata and Appellate
Authorities,(CESTAT,
Kolkata)

Service tax on Cargo

Handling Services at
Duburi unit as
Demanded
by Commissioner,
Bhubaneswar

163.09

April 2009 To March 2010

Appellate Authorities,
(CESTAT, Kolkata)

Finance Act,1994
(Service Tax
Provisions)
(As amended upto
date)

Service Tax on
Business Auxiliary
services at Durgapur
unit as demanded by
Commissioner,Central
Excise Bolpur

178.30

Oct 2009 To Mar 2010

Appellate Authorities,
(CESTAT, Kolkata)

Orissa Sales Tax

Act,1947

For Sales Tax and

Entry tax at
Rourkela unit as
demanded by Orissa
Sales Tax Department

46.50

2002-03

39
00

B B Bx B/ F

S N L

Sales Tax Tribunal,

Cuttack

v E x
+c xM{E
+vx 1950

E E |Ei J ` +v V vi V n i
+v Si I j { n ,
=E (<{i xM) u
b{, bV +n V
-={E { SM

+c =SSk x

3.24

(M) n M< Sx + {]Eh E +x, E{x u E{x +vx 1956 E vi |vx B =E +vx xB
MB x E inx xE I B I xv +ih Ex E B +{Ii E x +ih E M
*
8.
E{x E E +i x x < + = il { {i B il k E nx < `E { k E
nx xMn x x < *
9.
E{x E E nx E k lx B E E< E x *
10. n M< Sx + {]Eh E +x E{x x E k lx E +x E @h x E B E< M] x
n *
11. E{x x E nx E< v EV x *
12. J {I E nx E{x u E E |E E O E vJvc nJ x M< + x =E E< Sx
*
Ei +O B {
xn J{
{Vx GE 003350
B . E.+bx
Zn
{Vx G. 401080

lx : {
nxE : 03/06/2015

40
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B B Bx B/ F

S N L

Name of the statute

Orissa
Municipal Act,
1950

Nature of dues

Octroi on heavy
earthmoving
equipment like
Dumpers, Dozers etc.
by notified Area
Council, Rourkela
(Steel Township)

Amount
(` in Lacs)

Period to which the

amount relates

3.24

Forum where dispute

is pending
Orissa High Court

(c) According to the information and explanation given to us the amounts which were required to be transferred to the
investor education and protection fund in accordance with the relevant provisions of the companies act 1956.
(1 of 1956) and rules there under has been transferred to such fund within time.
8.

The company does not have any accumulated losses at the end of financial year and has not incurred cash losses in
the financial year and in the immediately preceding financial year.

9.

The Company did not have any outstanding dues to financial institutions, bank during the year.

10. In our opinion and according to the information and explanations given to us, the company has not given any
guarantee for loans taken by others from banks or financial institutions.
11. The company did not have any term loans outstanding during the year.
12. According to the information and explanation given to us, no material fraud on or by the company has been noticed or
reported during the course of our audit.

For AGRAWAL & PANSARI

Chartered Accountants
Registration No. 003350C
CA V. K. Adwani
Partner
Membership No.: 401080

Place-Raipur
Date- 03/06/2015.

41
00

B B Bx B/ F

S N L

ij J {IE E {] E +xv
E{x +vx, 2013 E v 143(5) E ii i E xjE B
J {IE u V xn
xn

V
E nx E{x E x i Sx x + *

1.

n E{x E x i Sx + i +i
(+i +i + i) + ni+
(|ir B x |Ii xv i) E
Ex E n {h li {] E VS E
VB V x |G E |E + ix Sh
*

2.

@h/nE/V +n E i E +viM/
]] Ji bx E E< ? n , i <E
Eh + i E h n*

k 2014-15 @h/nE/V +n
E i E +viM ]] Ji bx E E<
x { M* E{x x
+x/nMv @h E B k 2014-15
Ji- `33.72 J { E |vx E*

3.

C i {I E { {c i S + E
+x |vE u |ni ] |{i +i E
=Si +J S nV E Vi *

E{x E i-S E i {I E { x
B E{x x E |E E +i E
+x |vE J {Ih E +v E nx
|{i x E *

4.

i Exx/vli E +v h
{ {] |ii E V E Eh +
Exx (n + lx) { i VS
ij E VnM/|i *

i Exx/vli E {], V ={v

E M< , = +xMxE -I Mx E M
, Mix/ +n E +xIh xi E{x E
` E{E u E Vi *

42
00

B B Bx B/ F

S N L

ANNEXED-B TO THE INDEPENDENT AUDITORS' REPORT

DIRECTIONS OF COMPTROLLER AND AUDITOR GENERAL OF INDIA UNDER SECTION 143(5)
THE COMPANIES ACT, 2013

S.No.

Reply

Directions

1.

If the Company has been selected for

disinvestment, complete status report
in terms of valuations if Assets
(Including Intangible Assets and
Land) and Liabilities (Including
committed & General Reserve) may
be examined including the mode and
present stage of disinvestment
Process.

The Company has not been selected

for disinvestment.

2.

Please report whether there are cases

of waiver/write off of debts/
loans/interest etc., if yes, the reasons
there for and the amount involved.

There are no such cases found for

waiver/write off of debts / loans/ interest to
any party during the FY 2014-15.
However, company made a provision for
Bad & Doubtful Debt of Rs. 33.72 lakhs in
the books of account in the F.Y. 2014-15.

3.

Whether proper records are

maintained for inventories lying with
third parties & assets received as gift
from Govt. or other Authorities.

The inventory of the company is not

lying with third party. The company
has not received any assets as gift
from Govt. or other authorities during
the period of audit.

4.

A report on age wise analysis of

Pending legal/ arbitration cases
including the reasons of pendency and
existence/ effectiveness of a
monitoring mechanism for
expenditure on the all legal cases
(Foreign and local) may be given.

A report on Pending legal/arbitration

cases, as provided, is enclosed as
Annexure B-I. Payment/ expenditure
are being regularly monitored by
senior executives of the Company.

43
00

B B Bx B/ F

S N L

E{x +vx,
V ={xn

2013

E v

143(5)

E ii i E xjE B J {IE u
V

G..
{h i + {]]vi E +vE{j niV E
VS E = {h i + {]]vi E Ij VE
J ={v x , ni il +iGi E {]
E*

x {]]vi V - B { 33 E i {]] {
+Vi E M E +vE {j niV E VS E il {
E |E E n B +iGh x *

E{x E u E E li E iE {
Ih E M , C Ih E |inx/|h{j,
E{x u +vOi E Ij E l Ji il
+iGh ]x E Ex | En M*

E nx E{x E u E li E iE { Ih x
E M *

{ B +x |{i
{ B +x |{i VS E {] E E
|{i {]Ei l il +Mi n E Si {]Eh E
l J Vi E M*

{ E |{i 31/03/15 E li {]Ei il/ GE O

x E M h +xMxE -II n M *
+{]Ei ` 85,18,042 *

Ix E +v +vE il {S E +v +vE
+{]Ei E E {] E

` 33,72,109/-

V B vi {I u {] E M< * C
k h vi n {Ii {E {
z + n B i +xi E {] E*

i {] E M GE O x E M h
+xMxE -II n M *

{ E - B { ix +vE E
+v |{i E Vx E, E{x x +x/nMv @h E B
k 2014-15 Ji- ` 33.72 J { E |vx E
*

ES ix + k il +x {jiB
={nx B +x ES E B EE ni E
+Ex E B |vx u Oh E ix |iii
r VS E {] E E |iii r =Si l +
E{x u EE Ex i ={v EB M ji
b] {h + x l*

={nx i Vx xM E l k {i * E{x u
i Vx xM E M E +v {, Mix Ei E
Vi VE Ex i Vx xM u E Vi *
E{x xxJi E B EE Ex E v +{x ES
E Ex Ei *
i) U]] v Vx*
ii) SEi -
iii) x{] +x
iv) xi E il ix {nl E E B ={
v) ES { +x Vx
Z E +v {, E{x x EE Ex i =Si + {{i b]
EE E ={v E*
44
00

B B Bx B/ F

S N L

SUB-DIRECTION OF COMPTROLLER AND AUDITOR GENERAL OF INDIA UNDER SECTION 143 (5) THE COMPANIES
ACT, 2013
S.No.
1.

Sub-Directions

Reply

Land

(I)

Examine the title/lease deeds for freehold

and leasehold land and report area of
freehold and leasehold land for which title
deeds are not available, in dispute, and
under encroachment

We have examined the title of lease leasehold land

acquired from SAIL-BSP on perpetual lease of 33 years.
The land is not under any dispute and land
encroachment.

(ii)

State whether the Company has physically

surveyed the land during the year, whether
the certificate/report of the survey matches
with the area of land held by the Company
and effective steps taken by the Company
to remove encroachment ?

The company has not physically surveyed the land

during the year.

2.

Trade and other receivables

Examine the balances of trade and other
receivables and report whether the same
were reconciled and unmatched items
were adequately explained and adjusted
in the accounts.

An amount receivable from SAIL BSP of ` 33,72,109/was outstanding for more than three years. However,
company made a provision for Bad & Doubtful Debt of
`33.72 lakhs in the books of account in the
F.Y. 2014-15.

Also report the total amount of

unconfirmed balances and those
outstanding for more than three years and
more than five years.

3.
(i)

Trade receivable as on 31.03.15 have been confirmed

and/or reconciled from subsequent collections, details
given in Annexure B-II.
Total amount of unconfirmed balance is ` 85,18,042/-.

Where such balances have been

confirmed by respective parties, whether it
varies widely from the amounts reflected
under respective heads in the financial
statements, and if so, difference to be
disclosed.
Employee pay & allowances &
other entitlements

Balance have
either
been confirmed and/or
reconciled from subsequent collections, details given in
Annexure B-II.

Examine the percentage escalation in

salary assumed by management for
computation of actuarial liability against
gratuity and other employee benefits and
report whether the same was reasonable,
and source data provided by the company
to the Actuaries for actuarial valuation
were correct, complete and valid.:

The Gratuity is funded with Life Insurance Corporation

of India. The valuation itself done by Life Insurance
Corporation of India and company pays premium on the
basis of demand of Life Insurance Corporation of India
every year.
The company evaluate its employee benefits through
Actuarial Valuation for the following:
i) Leave Scheme
ii) Mediclaim Insurance
iii) Settlement Allowance
iv) Gifts paid to existing and retired employees
v) Employee Family Benefit Scheme
Based on the understanding, the company has
provided appropriate and adequate data to actuaries
for actuarial valuation.

45
00

B B Bx B/ F

S N L

G..

n V ix +vE +v Si x E M E
+Si i S E { x M + E{x u <E |vx
( 2001-02 |i n |ii E Mi ) E M*

ix {j il { +Si bh E I il
+|Sx + E E B |vx E {{ii E
+Ex E*

31 S 2015 E li +Si O E E ` 265.01 J

il E{x x `131.95 J E |vx E *

<E +, |vx E +iE iExE I i x E{x E

E +Si O `23.42 J E +|Si i S Sxi E
* i x <x +|Si i S E +xxi r M
`8.08 J E * E{x x k 2013-14 E nx +|Si i
S E B `15.34 J E |vx E*
xnE b E +E V E n +|Si E x{]x i
u E MB Ih E +v { xvi E Vi *

Ei +O B {
xn J{
{Vx GE 003350
B . E.+bx
Zn
{Vx G. 401080

lx : {
nxE : 03/06/2015

46
00

B B Bx B/ F

S N L

S.No.

(ii)

Sub-Directions

Reply

Review all the non-moving stores on the

balance sheet date and assess the
adequacy of provision for obsolescence
and value reduction.:

The items, which have not moved for more than three
years are considered as non-moving inventories and
the Company has made corresponding provision (i.e
ten percent of cost every year from year 2001-02.).
The gross value of non-moving inventory is ` 265.01
lacs as at 31st March15 against which company has
made provision of `131.95 lacs.
Moreover, Internal technical review committee of the
management identified obsolete inventory out of the
total non-moving inventory amounting to ` 23.42 lacs.
The committee has also estimated net realizable value
of ` 8.08 lacs against obsolete inventory. The company
has provided for ` 15.34 lacs against obsolete inventory
during FY 2013-14.
Disposal of obsolete inventory is determined on the
basis of survey conducted by a committee after
necessary approval from board of directors.
V

For AGRAWAL & PANSARI

Chartered Accountants
Registration No. 003350C

CA V K. Adwani
Partner
Membership No.: 401080

Place-Raipur.
Date- 03/06/2015.

47
00

B B Bx B/ F

S N L

48
00

B B Bx B/ F

S N L

+H Exp =i{n B
+E { E M E
+x < <E< EM bM {

+iH +H , H
+H Exp +E
{ E +nx x{
<E< i E E
{E {

+iH +H E xp
+E B =i{n E
{ B E+H,
Exp +E =i{n E
+x u E <E<
i E E {E
+ {

x< n

+{ |vE u E{x E
{I {i +n E E
M u .<.B.].B.].E
I {x: +{ E M *
4/22/2004

4/21/2006

3/31/2015

3/31/2015

3/31/2015

3/31/2015

6/26/2006

10/8/2010

3/31/2015

3/31/2015

+H Exp +E
=i{n E S E
+nx E <E<
E {E + {
E E
4/15/2004

3/31/2015

+vIE Exp +E
=i{n E VV{ E M
E +x b <E< EM
hbM + { E
(E nE )

V n i

49
00

B B Bx B/ F

S N L

50
00

B B Bx B/ F

S N L

+H Exp =i{n x
E M E +x- b
<E< EM bM
{

nM{ <{i j EM
bM B E
{E { E

nM{ <{i j B B
<{i j EM bM
B E {E
{ E

+H Exp =i{n E
B +E-x E
M E +x b <E<
E EM bM
{

+H Exp =i{n E B
+E x E M E
+x b <E< i
E EM bM {

V n i

10/12/2010

7/4/2010

10/13/2009

9/26/2008

4/6/2009

10/20/2009

3/2/2009

3/31/2015

3/31/2015

3/31/2015

3/31/2015

3/31/2015

3/31/2015

3/31/2015

51
00

B B Bx B/ F

S N L

3/31/2015

3/31/2015

3/31/2015

10/13/2009

7/4/2010

10/12/2010

3/31/2015
4/6/2009

3/31/2015

3/31/2015

10/20/2009

9/26/2008

3/31/2015

3/2/2009

52
00

B B Bx B/ F

S N L

xM{E

+v Si Ij {n,
=E (<{i xM)
u b{, bV +n V
-={E { SM

+c GE M E
M E +x =E <E<
G E B | E E
B

+H Exp =i{n E B
+E { E M E
+x nM{ <E< E
{E { E

V n i

1/4/1992

25/9/2006

3/4/2011

31/3/2015

31/3/2015

3/31/2015

31/3/2015

3/31/2015
3/4/2011

53
00

B B Bx B/ F

S N L

v{E |Eh E Ev +x h:+v

+ixi (J ` )
1 E +v E |Eh
0.00
1 2 iE E +v E |Eh
0.00
2 3 iE E +v E |Eh
0.00
3 4 iE E +v E |Eh
0.00
4 5 iE E +v E |Eh
480.92
5 6 iE E +v E |Eh
830.70
6 7 iE E +v E |Eh
2722.68
7 8 iE E +v E |Eh
0.00
8 9 iE E +v E |Eh
366.39
9 10 iE E +v E |Eh
0.00
10 11 iE E +v E |Eh
1874.75
11 12 iE E +v E |Eh
0.00
12 +vE iE E +v E |Eh 3.24
E
6278.68

54
00

B B Bx B/ F

S N L

Agewise Analysis of Legal Cases

Amount
Involved
(` in
Lacs)

Period

Less than 1 year

0.00

1 Year to 2 Year

0.00

2 Year to 3 Year

0.00

3 Year to 4 Year

0.00

4 Year to 5 Year

480.92

5 Year to 6 Year

830.70

6Year to 7 Year

2722.68

7 Year to 8 Year

0.00

8 Year to 9 Year

366.39

9 Year to 10 Year

0.00

10 Year to 11 Year

1874.75

11 Year to 12 Year

0.00

More than 12 Year

3.24
Total

55
00

B B Bx B/ F

S N L

6278.68

56
00

B B Bx B/ F

S N L

nxn u {]Ei

57
00

B B Bx B/ F

S N L

xnE E |inx E MxE-III

nxE 31 S, 2015 E {i E B G{ xM ]b E J+ { E{x +vx,
2013 E v 143(6)(J) E +xiMi xjE B i E J {IE E ]{{h
E{x +vx, 2013 E +xiMi i k h fS E +x 31 S, 2015 E {i
E B G{ xM ]b E k h E i Ex E{x E |vx E ni *
i xn J{ lx u xvi +EIh xE E +x ij J {Ih V
+vx E v 143(10) E +v { E{x +vx, 2013 E v 143 E +iMi <x k
h { +H Ex E E{x +vx, 2013 E v 139(5) E ii xjE B
i E J {IE u xH vxE J {IE =kn * < nxE 3 Vx, 2015 E =xE
J {Ih |inx E +x =xE u { E M*
x xjE B i E J {IE E + 31 S, 2015 E {i E B G{
xM ]b E k h E E{x +vx, 2013 E v 143(6)(E) E +xiMi {E
J {Ih E* <x {E J {Ih E vxE J {IE E E-{j E x ij {
{ni E M il |lE { vxE J {IE il E{x E ES {UiU
B EU J +J E VS-{ci iE i l* J {Ih E +v { VxE
E< +| vx x + il V { vxE J {IE |inx E {] { E<
]{{h =Pi E V E*
xjE B i E J {IE B
E i =xE + ,
E V
|vx xnE, hVE J {I B {nx n
J {I b E E, S

58
00

B B Bx B/ F

S N L

ANNEXURE III TO THE DIRECTORSREPORT

COMMENTS OF THE COMPTROLLER AND AUDITOR GENERAL OF INDIA UNDER SECTION 143(6)(b)
OF THE COMPANIES ACT, 2013 ON THE FINANCIAL STATEMENTS OF FERRO SCRAP NIGAM LIMITED
FOR THE YEAR ENDED 31ST MARCH 2015

The preparation of financial statements of Ferro Scrap Nigam Limited for the year ended 31st
March, 2015 in accordance with the financial reporting framework prescribed under the Companies
Act,2013 is the responsibility of the management of the company. The Statutory Auditors appointed by
the Comptroller and Auditor General of India under Section 139(5) of the Act, are responsible for
expressing opinion on the financial statements under Section 143 of the Act based on independent audit
in accordance with standards on auditing prescribed under Section 143(10) of the Act. This is stated to
have been done by them vide their Audit Report dated 3,June.2015

I,on the behalf of the Comptroller and Auditor General of India have conducted a supplementary
audit under Section 143(6)(a) of the Act of the financial statements of Ferro Scrap Nigam Limited for the
year ended 31st March 2015. 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 Auditors 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 comments upon or supplement to Statutory Auditors Report.

For and on the behalf of the

Comptroller & Auditor General of India

Sushil Kumar Jaiswal

Place: Ranchi

Principal Director of Commercial Audit &

Date : 27 July,2015

EX-Officio Member, Audit Board, Ranchi

59
00

B B Bx B/ F

S N L

xnE E |inx E MxE IV

|{j-B+-3
S J {I |inx
31 S 2015 E {i B k i
(E{x +vx, 2013 E v 204 (1) B E{x (|vE EE E xH
B {E) x, 2014 E x .9 E ii)

nMh
G{ xM ]b
x (ii{Si G{ xM ]b E{x E { =Ji) u EB MB +SU xMi E E vxE |vx +
=E +x{x E S J {I E * S J {I vxE +x{x E x E +x =Si Eh E
Ex E M, VE +x +{x S H E *
G{ xM ]b, E {iE, niV x] {iE, |{j B nJ ]x +x +J Vx E{x x i
E =xE VS + E{x E +vE, BV] +vEi |ixv Vxx J {I E nx E{x E |ixvi
E, =x VxE + |vx u n M VxE +{x VS E +v { E{x E 31 S, 2015 E
{i B k E J {I +v E +{x H E * +i { E{x x E Sr vxE
|vx E +x{x E* E{x x b E |G + +x{x E {ri E n M {] =J E +x {x
E*
x E{x E {iE/C, EMVi, x] {iE, |{j, nJ ]x +x +J E Vx G{ xM ]b x
31 S 2015 E {i B k E B i E Vx Z ={v E M* =xE <x M |vx E +x x
VS E*
i. E{x +vx 2013 (+vx)+ = i x V M :
ii. C]V E]C] (Mx) +vx 1956 (B+B) x x
M x
iii. b{V] BC] 1996 B xx il = i EB MB ={ Exx E +x
M x
iv. n p |vx +vx 1999 + |iI n x, |iI p{ x + n hVE xn E
ii x x Exx*
+|V
v. i |ii B x b +vx, 1992 ( +vx) E +iMi xvi xxJi x B
n-xn
E.i |ii B x b ({{i E +vOh Jn) x, 2011
+|V
J.i |ii B x b (i ]bM {n) x, 1992;
+|V
M. i |ii B x b ({V B |E]Eh +Ei+ E q) x, 2009 B
+|V
vi. |vx u E M +nx E +x E{x i |V +x Exx
60
00

B B Bx B/ F

S N L

ANNEXURE IV TO THE DIRECTORS REPORT

FORM NO. MR-3
SECRETARIAL AUDIT REPORT
FOR THE FINANCIAL YEAR ENDED 31ST MARCH, 2015
(Pursuant to Section 204 (1) of the companies act, 2013 and rule No.9 of the companies
(Appointment and Remuneration of Managerial Personal) rules, 2014)
To,
The Members,
FERRO SCRAP NIGAM LIMITED
I have conducted the secretarial audit of the compliance of applicable statutory provision and the adherence to good corporate
practices by Ferro Scrap Nigam Limited (hereinafter called the company). Secretarial Audit was conducted in a manner that provides
me a reasonable basis for evaluating the corporate conducts / statutory compliances and expressing my opinion thereon.
Based on my verification of the Ferro Scrap Nigam Limiteds books, paper, minute books, forms, and return filed and other records
maintained by the company and also the information provided by the company, its officers, agents and authorized representative
during the conduct of secretarial audit and as per the explanations given to me and the representation made by the management, I
hereby report that in my opinion, the company has, during the audit period covering the financial year ended on 31st March , 2015
generally complied with the statutory provisions listed hereunder and also that company has proper Board process and compliance
mechanism in place to the extent, in the manner and subject to the reporting made hereinafter :
I have examined books, papers, minute books, forms and returns filed and other records made available to me and maintained by the
Ferro Scrap Nigam Limited for the financial year ended on 31st March, 2015 according to the applicable provision of:

i. The Companies Act ,2013 (the Act) and the rules made there under, as applicable;
ii. The Securities contract (regulation) Act, 1956 (SCRA) and the rules made there under ;
NOT APPLICABLE
iii. The Depository Act, 1996 and the regulation and Bye-laws framed there under;
NOT APPLICABLE
iv. Foreign Exchange Management Act, 1999 and the rules and regulations made there under to the extent of Foreign
Direct investment, Overseas direct Investment and External Commercial borrowing;
NOT APPLICABLE
v. The following regulations and guidelines prescribed under the Securities and Exchange Board of India Act,1992(SEBI
Act):
a. The securities and exchanges Board of India (Substantial Acquisition of Shares and Takeovers)
Regulations,2011;
NOT APPLICABLE
b. The Securities and exchanges Board of India (Prohibition of Insider Trading)Regulation, 1992;
NOT APPLICABLE
c. The Securities and exchanges Board of India (issue of Capital and disclosure Requirements) Regulation,
2009; and
NOT APPLICABLE
vi. Other laws applicable to the company as per the representations made by the Management.

61
00

B B Bx B/ F

S N L

x xx |V Jb E +x{x E VS E :
i.

+vx B x E +iMi xn] b B vh + E xv <]]] + E{x

G]V + <b E S xE 1 V<, 2015 viE E M * il{ 2014-15
E nx <]]] u V S xE, V viE x , E l +x{x E M *

E{x u B< xx ]E BCSV + <b . E l EB M Sri v Zi

|V x
I E +v E{x x Z n M< VxE {]Eh il |vx u n M VxE E +x +i {
+vx E |vx, x, xx, n-xn +n E {x E V E >{ =J E M *
+ VxE nx Si E:ii.

E{x E xnE E b E M`x Si { EE xnE, M EE xnE ij xnE E Si ix

E l +* xnE E b {ix V < +v E nx B +vx E +x{x E l B* b E `E
E xnE E |{i E E 7 nx { x] n M* `E E q ii ]{{h +O { V MB
+ `E E q E SxB nx, {]Eh +n E |G +{x M V `E lE Mn E*
|vx u ={v E< M VxE E +x b E `E + i xh B MB*
+M |vx E i Z nB MB {]Eh B EB M |ixvi E +x |inx Ei il V = {
x , = { E +x E{x x +{x +E {Sx E +x M Exx, xx, n-xn
+n E M Ex E ={H {ri |G +{x *
Ex Si E J {I E +v B E< xn] P]x/E< x < VE E{x , ={H
Exx, x, xE, xE, V E >{ =J , E M Ex E< + {c *
B Vi
lx : EEi
BB : 30311
nxE : 13/07/2015
.{.x. : 11169
]{{h:
{] u xS n M< ]{{h E l {g VB*
1. S Eb Jx E Vn E{x |vx E + E <x S Eb { +vi J {I { S
H Ei *
2. S Eb E ii Vc ={H +x E n x +b] E |G E {x E* J {I <
+v { E M< E S Eb E VS E +v { xSi + J {I il {Ii * x V
|G {ri +{x = +v { S H Ex E {{i +v *
3. x E{x E k Eb + Ji- E ii ={Hi E VS x E*
4. V Vi {c x E{x E |ixv x xE, P]x+ +n E V *
5. xMi +x M Exx, x xx, xE E +x{x E Vn |v E * VS <xE {Ih |G E
VS E +v { *
6. S J {I |inx x i E{x E i E x i +x + x E{x |vx E
+Sh E nIi |Ei E*
62
00

B B Bx B/ F

S N L

I have also examined compliance with the applicable clauses of the following:
i.

Secretarial standers of the Institute of Company Secretaries of India with respect board and general meetings are
yet to be specified under the Act by the Institute.

Ii.

The Listing agreements entered into by company with BSE limited and National Stock Exchange of India limited.
NOT APPLICABLE

During the period under review and as per the explanations and clarifications given to me and the representation made by
management, the company has generally complied with the provision of the Act, Rules, Regulations, Guidelines, etc. mentioned
above.
I further report that :The Board of Directors of the company is duly constituted. However, Audit Committee, Remuneration Committee and Corporate
Social Responsibility Committee were constituted in the absence of Independent Directors. The changes in the composition of the
Board of Directors that took place during the period under review were carried out in compliance with the provision of the Act.
Adequate notice was given to all Directors at least seven days in advance to schedule the Board Meetings. Agenda and detailed
notes on agenda were sent in advance, and a system exists for seeking and obtaining further information and clarifications on the
agenda items before the meeting and for meaningful participation at the meeting.
Decisions at the board meeting, as represented by the management, were taken unanimously.
I further report as per the explanation given to me and the representation made by the management and relied upon by me there are
adequate systems and processes in the company commensurate with the size and operations of the company to the monitor and
ensure compliance with applicable laws, rules, regulations and guidelines.
I further report that during the audit period, no such specific events / actions having a major bearing on the companys affairs in
pursuance of the above referred laws, rules, regulations, guidelines, standards, etc. referred to above, have taken place.
CS SAUMAYO JYOTI SEAL
ACS: 30311
C. P. No. 11169

Place: Kolkata
Date: 13/07/2015

NOTE:
My report of even date is to be read along with this note.
1. Maintenance of secretarial records is the responsibility is to express an opinion on these secretarial records based on my audit.
2. I have followed the audit practices and process as were appropriate to obtain reasonable assurance about the correctness of the
contents of the Secretarial records. The verification was done on test basis to ensure that correct facts are reflected in secretarial
records. I believe that the process and practices, I followed provide a reasonable basis for my opinion.
3. I have not verified the correctness and appropriateness of financial records and Books of Accounts of the company.
4. Wherever required, I have obtained the management representative about the compliance of laws, rules, and regulations and
happening of events etc.
5. The Compliance of the provision of corporate and other applicable laws, rules, regulation, standards is the responsibility of
management. My examination was limited to the verification of procedure on test basis.
6. The secretarial audit report is neither an assurance as to the future viability of the company nor of the efficacy or effectiveness with
which the management has conducted the affairs of the company.

63
00

B B Bx B/ F

S N L

xnE E |inx E MxE-V

|{ BV]-9
E |inx E =rh
k 31/03/2015 E {i {
(E{x +vx 2013 E v 92(3) + E{x (|vx + |x) x,
2014 E x 12(1) E +xh )
I.V]Eh + +x
+<Bx
{Vx E nxE
E{x E x
E{x E h/={h
{VEi E E {i {E E h

C Sr E{x
V] + lxii BVx] E x,
{i {E + +x E h
II.

27102 ] 1989 V++< 005468

28/03/1979

G{ xM ]b
{VMi +-E{x
B.B.Bx.B.x, <C{] SE,x] Bx,{]
C-37, <-490001
n x.-0788-2222474/2222475
<- : fsnl.co@rediffmail.com
<] : www.fsnl.nic.in
x
xE

E{x E J MivE{x E E Miv VE E{x E E +i 10 |ii = +vE

< |E :-

G.

=i{n/ E Bx +< Eb E{x E E +i |ii

x il J =i{n/ E h

vi E +{] B G{ E {x|{i
({xSGh) E +xv +v
{ B <{i G{ B M, bM
+x + i

9989

98.81

bh

9967

1.19

III.

xj, +xM B H E{x E h:G.

E{x E x
+<Bx/V+<B xj/+xM/ vi E
H
B {i
%
1
B.B.]. ]b 27320 b 1964
xj
100
225.B.V.. b, V++< 026211
EEi 700020

64
00

B B Bx B/ F

S N L

M
v
2(46)

ANNEXURE V TO THE DIRECTORS REPORT

Form No. MGT-9

EXTRACT OF ANNUAL RETURN
As on the financial year ended on 31.03.2015
[Pursuant to Section 92(3) of the Companies Act, 2013 and rule12(1) of the
Companies (Management and Administration) Rules, 2014]

I. REGISTRATION AND OTHER DETAILS :CIN

U27102CT1989GOI005468

Registration Date

28 /03/1979

Name of the Company

Ferro Scrap Nigam Limited

Category/Sub-Category of the Company

Company having Share Capital

Address of the Registered office and contact details

FSNL BHAWAN, Equipment Chowk,

Central Avenue, Post Box-37 Bhilai-490001.
Telephone: 0788-2222474 / 2222475.
E-mail: fsnl_co@rediffmail.com,
web site: www.fsnl.nic.in

Whether listed company

No

Name, Address and Contact details of

Registrar and Transfer Agent, if any

NIL

II. PRINCIPAL BUSINESS ACTIVITIES OF THE COMPANY :All the business activities contributing10% or more of the total turnover of the company shall be stated:Sl. No. Name and Description of main products/
Services

NIC Code of the

Product/ service

% total turnover
of the company

Metal Waste & Scrap recovery ( recycling)

services on a fees or contract basis processing
of iron & steel scrap and slag
handling including other mills services.

9989

98.81

Warehousing Services

9967

1.19

III. PARTICULARS OF HOLDING, SUBSIDIARY AND ASSOCIATE COMPANIES :Sl. No: Name & Address
of the Company

MSTC LIMITED
225C A. J.C. Bose
Road,
Kolkata-700020.

CIN

Holding /
Subsidiary /
Associate

U27320WB1964GOI026211

65
00

B B Bx B/ F

S N L

Holding

% of Shares
held

100%

Applicable
Section

2(46)

HMi BS..B

(2)

Bx.+.+<.B.HMi -

|iE E E vi
J.{E vi

n =t {V E

66
00

B B Bx B/ F

S N L

IV. SHAREHOLDING PATTERN (Equity Share-Capital Breakup as percentage of Total Equity)

i)Category-wise Shareholding
Category of
Shareholders

No. of Shares held at the end of the

year

No. of Shares held at the

beginning of the year

Demat

Physical

Total

% of
Total
Shares

Demat

20000

20000

100%

Sub-total(A)(1):

20000

20000

100%

(2) Foreign
a)NRIs- individuals
b)OtherIndividuals
c)Bodies Corp.
d)Banks/FI
e)Any Other.

Sub-total(A)(2):

20000

100%

A. Promoters
(1) Indian
a)Individual/ HUF
b)Central Govt
(PSU)
c) State Govt(s)
d) Bodies Corp.
e)Banks/FI
f) Any Other.

Total
shareholding of
Promoter (A)=
(A)(1)+(A)(2)
B.Public
Shareholding

20000

1.Institutions
a)Mutual Funds
b)Banks/FI
c) Central Govt.
d)State Govt(s)
e)Venture
Capital Funds
f)Insurance
Companies
g)FIIs
h)Foreign
Venture
Capital Funds
i) Others
(Specify)
Sub-total(B)(1):-

67
00

B B Bx B/ F

S N L

Physical Total

%
Change
during

20000

20000

20000

% of
Total
Shares

20000

100%

20000

100%

NIL

20000

100%

2.

M lMi
(E) E{] xE
(i) i
(ii) n
(J) HMi
(i) 1 J {B
iE E EiE
{Vv
HMi
vE
(ii)1 J {B
+vE E
EiE
{Vv HMi
vE
(M)+x(=Ji)
={-M (J) (2)
E {E
vi
(J)=(J)(1)+(J(2)
(M) Vb+ B
Bb+ +IE
u vi
E M (E+J+M)

20000

20000

(ii) |iE E vi
G.. vE E E | vi

E +i vi

E J E{x E E E E{x E E
E |ii/i J
E |ii/i

E
%
E |ii
E |ii E %
1

B.B.].
]b ({.
B.)
M

20000

100

xE

20000

68
00

B B Bx B/ F

S N L

100

xE

E nx
vi
{ix
E |ii
xE

2.Non- Institutions

a)Bodies Corp.
I)Indian
ii)Overseas
b)Individuals
i)Individual
shareholders
holding
nominal
share capital
upto Rs.1lakh
ii)Individual
shareholders
holding
nominal
share capital in
excess of
` 1lakh
c)Others(specify)
Sub-total(B)(2):Total Public
Shareholding
(B)=(B)(1)+ (B)(2)
C. Shares held
by Custodian
for GDRs &
ADRs
Grand Total
(A+B+C)

20000

20000

(ii)Shareholding of Promoters
Sl
No.

Shareholders
Name

Shareholding at the beginning of

the year
% of
total
Shares
of the
Company

MSTC LTD
(PSU)

20000

100

Shareholding at the end of the

year
% of
total
Shares
of the
Company

% of Shares
Pledged /
encumbered
to total
shares

NIL

20000

Total

69
00

B B Bx B/ F

S N L

100

% of Shares
Pledged /
encumbered
to total
shares

NIL

%
change
in share
holding
during
the year
NIL

(iii) |iE E vi {ix ( n {ix x x E li E{ {] E )

G..

E | vi

E nx +vi E Sx

E J E{x E E E J
E |ii
E |

E{x E E
E |ii

E |E E {ix x + *

E | r/M] E Eh
E xn] Ei B
(+li +]x/+ih/x/v E |E E {ix x + *
+n)
E nx |iE E vi
il r M]
E +i

(iv).

n vE (xnE, |iE il V.b.+. B b + E vE E +iH) E

vi |ix:
G..

E + vi
|iE 10 vE
E B
E +

E nx Si vi

E J E{x E E J E{x E E
E |ii
E |ii
M x

M x

gi/v]i E Eh E {] Ei B
(+li +]x/+ih/x/ v
<in) vi E
nx il
gi/v]i :
E +i (+l {lCEh E
il E, n E nx {lE B)

70
00

B B Bx B/ F

S N L

M x

Shareholding at the
Beginning of the year

Sl.
No.

No. of
Shares

At the beginning of
the year
Date wise Increase/
Decrease in
Promoters Share
holding during the
year specifying the
reasons for increase
/decrease (e.g.
allotment/ transfer/
bonus/ sweat
equity etc):

Cumulative Shareholding
during the year

% of total
shares of
the
Company

No. of
shares

% of total
shares of
the
company

There is no change

There is no change

At the End of the

Year

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

Sl.
No.

Shareholding at the
beginning of the year
For Each of
the Top10
Shareholders

At the beginning of the year

Cumulative Shareholding
during the year

No. of
Shares

% of total
shares of
the
Company

No. of
Shares

% of total
shares of
the
Company

N.A.

N.A.

N.A.

N.A.

Date wise Increase/ Decrease in Shareholding

during the year specifying the reasons for increase/
Decrease (e.g.allotment/transfer/bonus /sweat
equity etc):
At the End of the year (or on the date of separation, if
separated during the Year)

71
00

B B Bx B/ F

S N L

(v) xnE B |J |vE EE E vi:

G..

E + vi
|iE xnE B
|J |v EE E B
E +

E nx S vi

E J E{x E E E J E{x E E
E |ii
E |ii
E{x E E xnE B |vE HE x + E vi x
E *

gi/v]i E
Eh E {]
Ei B (+li
+]x/+ih/
x/ v
<in)
|iE E
vi
E nx
il
gi/v]i :
E +i

72
00

B B Bx B/ F

S N L

(v) Shareholding of Directors and Key Managerial Personnel:

Sl.
No.

Shareholding at the
beginning of the year
For Each of
the Directors
And KMP

At the
beginning of
the year

% of total
shares of
the
Company

No. of
Shares

None of the Directors and KMP

hold any share in the company

Date wise
Increase/
Decrease in
Shareholding
during the
year
specifying the
reasons for
increase/
Decrease (e.g.
allotment/
transfer/
bonus /sweat
equity etc):

At the End of
the year

73
00

B B Bx B/ F

S N L

Cumulative Shareholding
during the year
No. of
Shares

% of total
shares of
the
Company

@hOii E{x E E/|ni Exi Mix i n x V i @hOii

V+ E UcE +|ii @h
|ii @h

xI{

E @hOii

k E + @hOii(i) vx

xE

xE

xE

xE

(ii) n Ei +nk V

xE

xE

xE

xE

(iii) |ni Ei +n V

xE

xE

xE

xE

M (i)+(ii)+(iii)
k E nx @hOii
{ix
Vx
E]i
E {ix

xE

xE

xE

xE

xE

xE

xE

xE

(i) vx

xE

xE

xE

xE

(Ii) n Ei +ni V

xE

xE

xE

xE

(Iii) |ni Ei +n V

xE

xE

xE

xE

M (i)+(ii)+(iii)

xE

xE

xE

xE

k E +i @hOii-

]{ - E{x x +{x Ei {V E +Ei E +vE v ` 2023.20 J E ={M (Mi `1054

J) { B E v V+ E l E *

74
00

B B Bx B/ F

S N L

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

Secured
Loans
excluding
Deposits

Unsecured
Loans

Deposits

Total
Indebtedness

Indebtedness at the
beginning of the financial
Year
i) Principal Amount

Nil

Nil

Nil

Nil

ii) Interest due but not paid

Nil

Nil

Nil

Nil

iii) Interest accrued but not

due

Nil

Nil

Nil

Nil

Total (i+ii+iii)

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

i) Principal Amount

Nil

Nil

Nil

Nil

ii) Interest due but not paid

Nil

Nil

Nil

Nil

iii) Interest accrued but not

due

Nil

Nil

Nil

Nil

Total (i+ii+iii)

Nil

Nil

Nil

Nil

Change in Indebtedness
during the financial year
Addition
Reduction
Net Change
Indebtedness at the
end of the financial year

Note : The Company used overdraft facility amounting to ` 2023.20 lakhs ( previous year `1054 lakhs ) against Fixed
Deposit with PSU Bank to meet its working capital.

75
00

B B Bx B/ F

S N L

VI.xnE

B |J |v EE E {E-

(E) |v xnE, {hEE xnE +/ |vE E {E: G..

{E E h
|v xnE {h EE xnE/|vE E x E
V ]]S

1

E ix
(E) +E +vx
1961 E v 17(1)
n M |vx E
+x ix
(J) +E +vx, 1961
E v 17(2) E +vx
{v E
(M) +E +vx 1961
E v 17(3) E +vx
ix E n |{i

2,23,192.00

83,209.00

]E E{

Ex
- E |ii E {
-+x =Ji
+x =Ji {]EE
M (E)

0
3,06,401.00

+vx E +x +vEi

76
00

B B Bx B/ F

S N L

VI. REMUNERATION OF DIRECTORS AND KEY MANAGERIAL PERSONNEL

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

Sl.
no.

Particulars of Remuneration

Name of MD/ WTD/Manager

Shri Rajib
Bhattacharya

1.

Gross Salary
(a)Salary as per provisions

2,23,192.00

contained in Section17(1) of
the Income-tax Act,1961
(b)Value of perquisites u/s
17(2)Income-tax Act,1961

83,209.00

(c)Profits in lieu of Salary

undersection17(3) Incometax
Act,1961
2.

Stock Option

3.

Sweat Equity

Commission

4.

- as % of profit
- others, specify
5.

Others, please specify

Total(A)

3,06,401.00

Ceiling as per the Act

77
00

B B Bx B/ F

S N L

Total Amount

(J) +x xnE E {E-xEG..

1.

{E E h

xnE E x

ij xnE

xE

xE

xE xE

xE

xE

xE

b i E `E M x E
Ex
+x =Ji
M (1)
2.

+x M E{E xnEb i E `E
M x E
Ex,
+x =Ji
M (2)
M-(J)=(1+2)
E |vE {E
+vx E+x +vEi

78
00

B B Bx B/ F

S N L

xE

B. Remuneration to other directors : NIL

Sl.
No.

1.

Independent Directors
Fee for attending board
Committee meetings

Total
Amount

Name of Directors

Particulars of Remuneration

N.A.

N.A.

N.A.

N.A.

N.A.

N.A.

N.A.

N.A.

Commission
Others, please specify
Total(1)
2.

Other Non-Executive Directors

Fee for attending board
committee meetings
Commission
Others, please specify
Total(2)
Total-(B)=(1+2)
Total Managerial Remuneration
Overall Ceiling as per the Act

79
00

B B Bx B/ F

S N L

(M).|v xnE |vE {hEE xnE E +iH +x |v EE E {E:

G..

1.

2.
3.
4.

5.

{E E h

|J |v EE
J EE
E{x S
+vE

J k
+vE

E ix
(E) +E +vx 1961
E v 17(1) E ={v E
+x ix

12,57,778.00

11,14,729.00

23,72,507.00

(J) +E +vx 1961

E v 17(2) E +vx
{v E

3,08,088.00

4,46,368.00

7,54,456.00

(M) +E +vx 1961

E v 17(3) E +vx
ix E n

]E E{
v
Ex
- E |ii E {
- +x =Ji
+x, =Ji
-Ex E k
-SEi
-iE k

0
0

0
0

0
0

0.00
0.00

0.00
0.00

0.00

0.00

15,65,866.00

80
00

B B Bx B/ F

S N L

15,61,097.00 31,26,963.00

C. REMUNERATION TO KEYMANAGERIAL PERSONNEL OTHER THAN MD / MANAGER / WTD

Sl.
no.

Particulars of
Remuneration

Key Managerial Personnel

CEO
1.

Company
Secretary

Gross Salary
(a)Salary as per
provisions
contained in
Section17(1) of
the Income-tax
Act,1961
(b)Value of
perquisites
u/s17(2)Income
-tax Act,1961

CFO

Total

12,57,778.00

11,14,729.00

23,72,507.00

3,08,088.00

4,46,368.00

7,54,456.00

(c)Profits in lieu of
Salary under
section 17(3)
Income-tax Act,
1961

2.

Stock Option

3.

Sweat Equity

4.

Commission
- as % of profit
-others, specify

0.00
0.00
0.00

0.00
0.00
0.00

15,65,866.00

15,61,097.00

5.

Others, please
specify
- HRA
- Medical
- Entertainment
Allowance

Total

81
00

B B Bx B/ F

S N L

31,26,963.00

E< x

E< x

E< x

lx: x< n
nxE:10/09/2015

82
87

B B Bx B/ F

S N L

VII. PENALTIES / PUNISHMENT / COMPOUNDING OF OFFENCES :

TYPE

Section of the
Companies Act

Brief Description

Details of Penalty /
Punishment /
Compounding fees
Imposed

A. COMPANY
Penalty
Punishment

NONE

Compounding
B. DIRECTORS
Penalty
Punishment

NONE

Compounding
C. OTHER OFFICERS
IN DEFAULT

Penalty

NONE

Punishment
Compounding

For and on behalf of Board of Directors

S.K.Tripathi
Chairman
Place : New Delhi
Date : 10/09/2015

83
00

B B Bx B/ F

S N L

Authority
( RD/
NCLT /
COURT )

Appeal
made, if
any
( give
Details)

xnE E |inx E MxE V

S 2015 E {i k E B xnE b E |inx E +xMxE E{x E B +
Miv E E |inx
31

1.0

|ii {Vx+ B EE{ E h E l E{x E xMi VE =kni xi E I{i

{J il xMi VE =kni xi B {Vx+ +l EE{ r E E n*
{E{x
VE { =kn< lx E i {h E Sixi E l BBBxB u +{x E E
xx E{x E {E{x E +x{ xMi VE =kni E GE{ E v +{x +,
+Sh B { E VB +{x EIj E n B S V E -xh xi vx E VBM, iE
V B n E +xi |Mi E f E*
=r
={H {E{x E ii, BBBxB u BE xMi VE =kni xi E Vx E M VE
J =r +{x E-Ij E {v +x V E < i |iI {I { GE{ E xx
Ex , VE {h { lx Vxn E Vx B +lE i v E iE n
BBBxB E J g E il xMi lx E { BBBxB E BE EiE B VE =kn<
lx E U E {x:l{i Ex i , lx i { vi =kni xSi Ex,
+n*
E E +]x
01.04.2014 E | E{x u Mi ix k E nx +Vi +ix r E xxi 2.0 |ii
xMi VE =kni xx { |i k JS E VBM*
Ec {Vx+ E Sx B +Ei +Ex
xMi VE =kni B xi {Vx+/GE{ E Sx +Ei xvh +vx u
+l V |vx/lx |x/xE/xME S/+E lx/x/i/H+ E
l iSi E +v { E Vi , il +xv/+nx E VS xMx i E xMi VE =kni
i u E Vi *
+Ei E +Ex/<x Ih, +iE nIi B vx E VB E Vi *
xMi VE =kni {Vx+/GE{ E +xnx
i xMi VE =kni B xi {Vx+/GE{ E +xnx, xnE b i E
i, +li, i xMi VE =kni B xi i u E Vi , Vx xnE b u
+xni E Vi *

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ANNEXURE - VI TO THE DIRECTORS REPORT

ANNEXURE TO THE REPORT OF THE BOARD OF DIRECTORS FOR THE FINANCIAL YEAR ENDED
31ST MARCH, 2015.
ANNUAL REPORT ON CSR ACTIVITIES OF THE COMPANY

1.0

Brief outline of the company's CSR Policy, including overview of projects or programmes proposed
to be undertaken and a reference to the web-link to the CSR policy and projects or programmes.
VISION
In alignment with vision of the company, FSNL, through its CSR initiatives, will continue to enhance
value creation in the society and in the community in which it operates, through its services, conduct &
initiatives, so as to promote sustained growth for the society and community, in fulfillment of its role as
a Socially Responsible Corporate, with environmental concern.
OBJECTIVES
With the above vision, FSNL has formulated a CSR policy with the main objectives of directly or
indirectly taking up programmes that benefit the communities in & around its work centres, which will
result in enhancing the quality of life & economic well-being of the local population, to generate a
community goodwill for FSNL and help reinforce a positive & socially responsible image of FSNL as a
Corporate entity, to ensure an increased commitment at all levels in the organization, etc.
ALLOCATION OF FUND
Effective from 01.04.2014, at least 2.0% of the average net profits of the company made during the
three immediately preceding financial years, shall be spent in each financial year towards discharge of
Corporate Social Responsibility.
SELECTION & NEED ASSESSMENT OF CSR PROJECTS
The Selection of CSR & Sustainability project / activities depend upon the local needs as may be
determined by the need identification studies or discussions with District Administration / local
government / bodies / citizen's forums / NGOs/Trusts / Societies / Beneficiaries etc and the requests /
applications are scrutinized and screened by the Corporate level CSR Committee.
The need assessment / baseline survey is carried out through in-house expertise and recourses.

APPROVAL OF CSR PROJECTS/ACTIVITIES

All the CSR & Sustainability projects / activities are approved by the Board level Committee i.e. CSR &
Sustainability Committee and ratified by the Board of Directors.

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 2014-15 E nx |ii VxB

2014-15 E B xMi VE =kni GE{ E xx il i E u V SU i +x
E +xh BBBxB u UkMg V E nM V li 3 Sxi E =SSi vE t
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xh i x u xH xb BV E |nx E V SE , il E |Mi { *
<E +, nM (UkMg) E Vv |{i xnx E +x, BBBxB u nM V li V E
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xMi VE =kni B xi i xnE b i E i M`i , VE xii BE H xnE u

E Vi * i E Sx E{x E xnE b u xvi E Vi *
xMi VE =kni B xi GE{ E xIh B Gxx xnE b i E i E
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2011-12
2012-13
2013-14

:
:
:

` 137.49 J
` 196.06 J
` 842.28 J

+i E :

` 391.94 J

4. .B.+. E i (={H (3) E 2 |ii)

` 7.83 J
5. k 2014-15 E nx .B.+.n JS E h-

(E) k E JS E Vx E - ` 25.27 J
` 21.77 J
(J) +i -n E< i(E |Mi { )

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PROJECTS PROPOSED DURING 2014-15

In discharge of CSR activity for the year 2014-15 and in adherence of the Swachch Bharat Abhiyaan
by

the

Govt.of India,

initiated

FSNL is constructing 3 Toilet blocks for the Girl students studying in the

identified 3 Government Higher Secondary Schools in Durg District of Chattisgarh State. The order for this job
has been placed on the Nodal agency appointed by the Government for such construction of toilet blocks, and
the job is under progress.
Apart from this, as per the directives received from the Collectorate-Durg(C.G), FSNL is also carrying out
Electrification/Acoustic jobs at Manas Bhawan in Durg District, which is one of the important auditoriums in the
state of Chattisgarh where the programmes depicting Art & Culture of this region are organized.

2. COMPOSITION OF CSR COMMITTEE

A Board Level Committee for CSR & Sustainability is headed by an Independent Director. The
Composition of the Committee is decided by the Board of Directors of the Company.
The implementation and monitoring of the CSR & Sustainability activities are overseen by the Board Level
Committee.

3.AVERAGE NET PROFIT OF THE COMPANY FOR LAST 3 FYs

2011-12 : ` 137.49 Lakhs
2012-13 : ` 196.06 Lakhs
2013-14 : ` 842.28 Lakhs
Average Net Profit : ` 391.94 Lakhs
4.PRESCRIBED CSR EXPENDITURE [ 2% OF (3) ABOVE ]
` 7.83 Lakhs
5.DETAILS OF CSR SPENT DURING THE FINANCIAL YEAR (2014-15)
a)Total amount to be spent for the financial year :

` 25.27 Lakhs

b)Amount unspent, if any :

` 21.77 Lakhs
(Work in progress)

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(M) k E nx JS E M< xx |E G..

(1)

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+ xi E Gxx B xMx EB Vx E v B
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88
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c)Manner in which the amount spent during the financial year is detailed below:Sl
No

(1)

CSR project
or activity
Identified

Sector in
which the
project is
Covered

Projects or
programmes
1.Local area
or other
2.Specify the
State and
District
where
projects or
programs was
Undertaken

(3)

(4)

(5)

(6)

Health
&Hyiegene
(Under
Swachch
Vidhyalaya
Abhiyan)

District: Durg
in
Chattisgarh
State

17.27 Lakh

3.50 Lakhs
(Work in
Progress)

3.50 Lakhs

Through Nodal
agency
appointed by
Govt.of India,
viz., M/s
Hindustan
Prefab Limited,
New Delhi

Development
of Art &
Culture of
the Region

District-Durg
in
Chattisgarh
State

8.00 Lakh

Work in
Progress

Departmentally

(2)

1.

Constn. of 3
nos.of Toilet
blocks for
Girl Students

2.

Electrification
& Acoustics in
Manas Bhawan
-Durg

TOTAL

Amount
outlay
(Budget)
project or
Programswise

25.27 Lakh

Amount
spent on the
projects or
programs
Sub-heads:
1.Direct
expenditure
on projects
or
programme
2.Overheads

Cumulative
expenditure
upto the
reporting
Period

(7)

Work in progress Work in progress

* Give details of implementing agency.

6.

In case the company has failed to spend the two percent of the
average net profit of the last three financial years or any part
thereof, the company shall provide the reasons for not
spending the amount in its Board report.

: Not applicable as
the allocation made is
more than 2% of the
average net profit of
last 3 financial years

7.

A responsibility statement of the CSR Committee that

the implementation and monitoring of CSR Policy is in
compliance with CSR objectives and Policy of the
Company.

: It is ensured that the

implementation and
monitoring of CSR
policy is in compliance
with CSR objectives
and policy of the Co.

Rajib Bhattacharya
Managing Director

D.B.Singh
Director

K.L.Patel
AGM(P&A)

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Amount spent:
Direct or through
implementing
Agency*

(8)

E{] Mx { |inx

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ANNEXURE- VII TO THE DIRECTORS REPORT

REPORT ON CORPORATE GOVERNANCE
COMPANYS PHILOSOPHYThe philosophy of the company in relation to corporate governance is to ensure transparency, disclosures and reporting and to
promote ethical conduct throughout the organization. It recognizes that the Board is accountable to shareholder and each member of
the Board owes his first duty to protect and furthering the interest of the company.
VisionThe Company has a vision to increase its operational horizon by expanding the existing business to provide better services to its
customer and to make the company competitive.
MissionThe Mission of the Company is to generate Wealth from Waste.
The Companys objective is to remain a market leader in the field of waste recycle management in the steel industry.
ObjectivesBOARD OF DIRECTORS COMPOSITION The Board has an appropriate mix of vast knowledge, wisdom and varied industry experience to guide the company in achieving its
objectives.
Board of Directors constitutes of Shri Shailendra Krishna Tripathi, (DIN:01016520) as Chairman who was also holding the additional
charge of the post of Managing Director, FSNL, upto 08.02.2015, Shri Rajib Bhattacharya (DIN: 07091356) who took over as
Managing Director of the Company w.e.f. 09.02.2015, Shri Bam Bahadur Singh, (DIN: 03212787) nominee Director of MSTC Ltd.,
Shri K. S. Samarendra Nath, ( DIN: 06892278 ) was Govt. Nominee director upto 21/12/2014 and the place of two non-official
directors ( independent Director) were vacant during the year.
Shri Deen Bandhu Singh, (DIN:03619886) Director, MOS, Govt. of India, has been nominated by Govt. of India, Ministry of Steel vide
letter no: 1(1)/2014-BLA dated 22nd December, 2014 in place of Shri K.S.Samarendra Nath (DIN: 06892278), Director, MOS, GOI.
Presently the position of two independent directors are vacant as no one has been appointed by the Administrative Ministry and the
appointment of the independent directors on the Board are beyond the control of the company.
BRIEF INFORMATION OF THE NEWLY APPOINTED DIRECTORS Shri Rajib Bhattacharya (07091356) is appointed as Managing Director of the company vide order no: 11(1)/ 2015-BLA dated
05/02/2015.
Shri Deen Bandhu Singh, ( DIN:03619886 ) Director MOS, Govt. of India, Ministry of Steel has been nominated by Govt. of India,
Ministry of Steel vide letter no: 1(1)/2014-BLA dated 22nd December, 2014 in place of Shri K. S. Samarendra Nath (DIN: 06892278),
Director, MOS, GOI.
DIRECTORSHIP HELD BY THE DIRECTORS Shri Shailendra Krishna Tripathi (DIN:01016520) Chairman is Chairman and Managing Director of MSTC Limited and Shri Bam
Bahadur Singh (DIN: 03212787) is working as Director commercial in MSTC ltd.
REMUNERATION TO THE DIRECTORS Independent Directors are not entitled to any remuneration other than sitting fees. Sitting fees are not given to Chairman,
Government Director and MSTC nominated Director.
REMUNERATION FOR MANAGING DIRECTOR The detailed terms and conditions of the appointment of Managing Director is as per the letter No: 11(1)/ 2015 dated 19th
March,2015 of the Govt. of India, Ministry of Steel is attached as Annexure A.
Board / Committee Meetings and procedure a) Scheduling and selection of Agenda items for Board / Committee Meetings i) The Meetings are conveyed by giving appropriate notice after obtaining approval of the Chairman of the Board / Committee.
Detailed agenda, management reports and other explanatory statements are circulated in advance amongst the members for
facilitating meaningful, informed and focused decisions at the meetings. The Board also passes Resolution by circulation.

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+x{x

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152
153
154
155

10.06.2014
30.09.2014
04.12.2014
21.02.2015

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ii) The agenda papers are prepared by the concerned head of the Department and for obtaining approval submitted to the Managing
Director. Duly approved agenda papers are circulated amongst the board members by the Company Secretary.
iii) Under certain circumstances additional or supplementary item(s) on the agenda are taken up for discussion with the permission
of the chair of the Board.

Compliances Every head of the Department ensures adherence to the provisions of applicable of laws, rules, guidelines etc. The Company
Secretary ensures compliance of all applicable provisions of the Companies Act, 1956 & the Companies Act, 2013 as applicable and
other statutory requirements.

BOARD MEETING & ATTENDANCE There were four Board Meetings took place on 10.06.2014, 30.09.2014, 04.12.2014 and 21.02.2015, respectively.
Details of the Directors attendance at the Board Meetings of the company held in the financial year 2014-2015.
Board
Meeting
No.

Board
Meeting
Date

Shri Shailendra
Krishna Tripathi
(DIN:01016520)

Shri Rajib
Bhattacharya
(DIN:07091356)
W.e.f.09.02.2015

Shri Bam
Bahadur Singh
(DIN:03212787)

Shri K. S.
Samarendra Nath
(DIN:06892278)
Upto 21/12/2014

Shri Deen
Bandhu Singh
( DIN 03619886
w.e.f. 22/12/2014

152

10.06.2014

Attended

Attended

Attended

153

30.09.2014

Attended

Attended

Attended

Attended

Attended

154

04.12.2014

Attended

155

21.02.2015

Attended

Attended

Attended

Information placed before the Board of DirectorsThe Board of Directors has complete access to information within the company. The information inter alia regularly supplied to the
Board includes :
Annual operating plans and Budgets and any updates.
Capital Budget, Revenue Budget and any updates.
Periodical physical and financial performance of the company.
Formation / Reconstitution of Board Committees.
Appointment, change in nomination and resignation of Directors.
Dividend declaration.
Significant changes in accounting policies and internal controls.
Minutes of the Meeting of the Board and other Committees of the Board of the company.
Periodical details of investment made.
Disclosure of interest by Directors.
Any Significant development in human Resources / Industrial Relations viz wage agreement, Additional Resource
Generation Scheme.
The information on legal cases pending in different courts.
The information on pending cases under fiscal laws such as service tax, Vat, Income tax etc.

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00

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94
00

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GENERAL BODY MEETINGS: HELD DURING THE LAST THREE YEARS -

SL.NO.

DATE

TIME

VENUE

SPECIAL RESOLUTION PASSED

1.

7th September,2012

10.30 A.M.

Registered Office,
Bhilai, CG

NIL

2.

19th September,2013

10.30 A.M.

Registered Office,
Bhilai, CG

NIL

3.

30th September, 2014

10.00 A.M.

Registered Office,
Bhilai, CG

NIL

Chairman holding additional charge of the post of Managing Director, FSNL was present in the 35th Annual General Meeting of the
Company held on 30th September, 2014.
COMMITTEES OF THE BOARD The condition laid down under the DPE Guidelines on corporate Governance and the provisions of the Companies Act, 2013
regarding the number of independent directors on the Board of the company as well as requirement of the chairmanship of the Audit
Committee, remuneration committee and CSR Committee who should be an independent director and the quorum requirement as
per the DPE Guideline and the Companies Act, 2013 is not possible to fulfill till the appointments of two independent directors by
Govt. on the Board of the company.

Your company is pursuing with the Government of India for appointment of independent directors against vacancies and the
appointment of directors are beyond the control of the company.

However, the Board was of the view in their 148th Board Meeting that the appointment of independent director by the Ministry may
take time, meanwhile the existing system of monitoring by the board level committee should continue to function in the same manner
as before and fresh committee shall be reconstituted in due course of time by inducting independent director, appointed by the MOS,
GOI. Accordingly these Board level committees were constituted by the Board.
Audit Committee Audit Committee was consisting of Shri K. S. Samarendra Nath (DIN:06892278) as its Chairman and Shri B.B.Singh ( DIN
:03212787 ) as its member and company secretary of the company serves as the secretary to the committee and with the change in
the Govt. Director, Audit Committee was reconstituted on 01/ 01/ 2015 as Shri D.B.SIngh (DIN:03619886) as its Chairman and Shri
B.B.Singh ( DIN :03212787) as its member and company secretary of the company serves as the secretary to the committee.
The terms of reference of the committee is in line with the DPE Guidelines issued on Corporate Governance.
During the year under report, 3 Meetings of the Audit Committee were held. The details of the attendance of the Members are
indicated below:

Sl. No.

Meeting No.

Meeting Date

Strength of Audit Committee

No. of Members Present

1.

09.06.2014

2.

20.11.2014

3.

10

31.03.2015

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={H i il =E `E, xnE b ij xnE E J il J {Ih i E +vIi E v

E =t M E n xn B E{x +vx, 2013 E xnb E {i x Ei *
xMi VE =kni xMx i:+{E E{x H ij xnE E {n { xH |nx E E{x i E {E E xxi |xi SE ij xnE E xH E{x E xxjh x *
+{E xnE b u ij xnE E H {n E vx Ji B ix xnE E Sx E BE xMi
VE =kni xMx i E M`x E * xMi VE =kni xMx i E M`x +vI E
{ E.B.xpxl (b +<Bx:06892278) B n E { .. (b +<Bx:03212787) E l E
M l il E{x S i E S E { +{x |nx Ei * E xnE E {ix E V
nxE 01.01.2015 E xMi VE =kni xMx i E {xM`x E M V b.. (b
+<Bx:03619886) E i E +vI B .. (b +<Bx:03212787) E n E { xi E M il
E{x S i E S E { |nx Ei *
|ini E nx xMi VE =kni xMx i E n `E G 20.11.2014 il 31.03.2015 E
+Vi E M< l*
G..
`E J GE `E E il xn/{E i E J ={li n E J
1
2

6
7

20/11/2014
31/03/2015

2
2

2
2

xMi VE =kni i E +x { E{x E BE xMi VE =kni xi (B+

xi)+{x< M< *
E{x E xMi VE =kni xi E{x E <] www.fsnl.nic.in { ={v *
i E n i E =t M u E{] Mx { V n-xn E +x{ *
{E i{E i E M`x E.B.xpxl (b.+<.Bx.06892278) E +vIi il ...
(b.+<.Bx.03212787) E i E n x M il E{x S E i E S xH E M *
E xnE E {ix E V nxE 01.01.2015 E {E i E {xM`x E M V b..
(b +<Bx:03619886) E i E +vI B .. (b +<Bx:03212787) E n E { xi E M
il E{x S i E S E { |nx Ei *
|ini E nx {E i E E BE `E nxE 31.03.2015 E {z < l*
G.. `E GE `E E il xn/{E i n E J `E ={li n E J
1

31/03/2015

={H i il =E `E, xnE b ij xnE E J il {E i E +vIi E v

E =t M E n xn B E{x +vx 2013 E xnb E {i x Ei *
J xnb E +x{x
k h i E xn JE lx E |V J xnb E +x{ xB MB *
+iE xjh
E{x E E I E |{i i E{x BE E +iE xjh |h , V +x i E l-l
k |inx E {ri B ii{i, Sx E Ei, i xi B |h E +x{x, B Exx
xx E +x{x *
96
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The above committee and its meetings does not satisfy the criteria laid down under the DPE Guidelines and the provisions of the
Companies Act, 2013 regarding the number of independent directors on the Board of the company as well as requirement of the
chairmanship of the Audit Committee.
CSR Monitoring Committee Your company is pursuing with the Government of India for appointment of independent directors against vacancies and the
appointment of directors are beyond the control of the company.
Your Board has constituted a Corporate Social Responsibility Monitoring Committee in the absence of the independent directors
with the existing directors. The CSR Monitoring Committee was consisting of Shri K. S. Samarendra Nath ( DIN : 06892278 ) as its
Chairman and Shri B. B. Singh ( DIN :03212787 ) as its member and company secretary of the company serves as the secretary to
the committee and with the change in the Govt. Director, CSR Monitoring Committee was reconstituted on 01/ 01/ 2015 as
Shri D.B.Singh (DIN:03619886) as its Chairman and Shri B.B.Singh ( DIN :03212787) as its member and company secretary of the
company serves as the secretary to the committee.
During the year under report, 2 Meetings of the CSR Monitoring Committee were held on 20.11.2014 and 31.03.2015 respectively.
Sl. No.

Meeting No.

Meeting Date

Strength of Remuneration Committee

No. of Members Present

1.

20.11.2014

2.

31.03.2015

Based on the recommendation of the CSR Committee a Corporate Social Responsibility Policy (CSR Policy) of the Company has
been adopted.
The CSR Policy of the company is available on the website of the company at www.fsnl.nic.in.
The terms of reference of the committee is in line with the DPE Guidelines issued on Corporate Governance.
Remuneration Committee The remuneration committee was consisting of Shri K. S. Samarendra Nath (DIN:06892278) as its Chairman and Shri B.B.Singh
( DIN :03212787 ) as its member and company secretary of the company serves as the secretary to the committee and with the
change in the Govt. Director, the Remuneration Committee was reconstituted on 01/ 01/ 2015 as Shri D. B. Singh (DIN:03619886) as
its Chairman and Shri B.B.Singh ( DIN :03212787) as its member and company secretary of the company serves as the secretary to
the committee.
During the year under report, only one Meeting of the Remuneration Committee was held on 31.03.2015
Sl. No.

Meeting No.

Meeting Date

1.

31.03.2015

Strength of Remuneration Committee

2

No. of Members Present

2

The above committee and its meeting does not satisfy the criteria laid down under the DPE Guidelines regarding the number of
independent directors on the Board of the company as well as requirement of the chairmanship of the remuneration committee.
Compliance with Accounting Standards Financial statements have been prepared in accordance with relevant Accounting Standard issued by the institute of Chartered
Accountants of India.
INTERNAL CONTROL The company has an efficient system of internal control for achieving the business objective of the company which inter-alia includes
accuracy and promptness of financial reporting, efficiency of operations, Compliance with the laid down policies and procedures and
compliances with law and regulations.

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+iE xjh B i | {ni +{xi B +iE J-{I E E iji E xSi Ex E =r

E{x E +iE J {I E E ij xn JE l E { Vi * - { +iE J {I
E |inx E |vx E VxE, lSi v B +E |iEE ={ i |ii E Vi *
+Sh i
E{] Mx { E =t M E n-xn E +x{ E{x E xnE b E n, ` |vE +vE
E B E{x u BE {E |in E +Sh B +Sxi i x< M< * i E{x E i
xnE B ` |vx E n E v Si E Vi * +Sh i E{x E <] www.fsnl.nic.in { ={v
* xnE b E n B |vx E xH ` +vE E u +Sh i E +x{x E {] E M<
* |v xnE u iIi iiv Ph < |inx E +i n M *
=t B Sx : |vx {SS B h |inx
Yi E i G{ |Gh =t E { E< { 1956 E M< l V iiEx ]E E |v xnE u
+E E E] <VxM E{x, BB (E E{x, BB E BE J) {E E M l, V
G{ |Gh iExE E |iE x Vi * G{ xM ]b E {i l E] <VxM E{x
(BB) u 1957 ]] +x Bhb ] E{x (iiEx ]E-Vn{) jE G{ |Gh Sx |
E M l* ii{Si, 1962 =E <{i j B 1964 <hbx +x Bhb ] E{x-x{ u G{
|Gh i <E + E |H E M*
+E lx E i J E { E] <VxM E{x (BB) u i Sx E V l*
n x xjh +vx,1974 E |ix E] <VxM E{x (BB) E i +{x E ]x l,
BE i lx E Zn xx l V i +vE i* < , <{i j u i < lx E
+ E xii <{i =tM E B E x M<* BE x lx E x Vx <E E{ l*
i E E <SU l E E] <VxM E{x, BB E Sx E ]Eh * inx, BB]
]b (iiEx ] G{ ]b E{x ]b) V = ] +l] + <hb ]b E E lx
l, E < xhx { E | Ex E E M* BB] ]b u Mx +vx Ex E ={i < E E
Sx i BE ij E{x E xh Ex E ii n M< + < i 28 S 1979 E E <xE{x, BB
E M E l G{ xM ]b +ii +<*
E] <VxM E{x E i G{ |Gh iExE, ={Eh B i EE E + E BBBxB E
lxii E n M,V 60 |ii + BB] ]b E { B E 40 |ii + E] <VxM
E{x, BB E { l* | BBBxB, ] +l] + <hb ]b E E lx l B ii{Si
BB] ]b E l 1982 E +M <* 2002 E E{x u +{x 40 |ii + E
BB] ]b E lxii E n M, + < i, BBBxB, BB] ]b E {h i
lx x M<*
BBBxB E +iH E
VxE Ij E BEEi <{i j G{ |Gh E E i BBBxB E Vx + l* G{ |Gh E E
1983 < <{i j , 1984 E <{i j , 1990 J{]]h <{i j il 1991 nM{ <{i
j | E M l*
<{i j nxE 21.12.1990 B 08.05.1991 E {z `E i E M l E 30.06.1991 iE i BEEi
<{i j G{ |Gh E E xV l+ E lx { BBBxB E { n VB* inx, Shr iE
BBBxB u <{i j {h G{ |Gh E E |{i E M* z j G{ |Gh E E
i BBBxB u i v+ V j B ={Eh, x +n { c {x { x E M, B E
Sx i c J x vx E xH E M<* nM{ <{i j xV lx E 165 ES E
BBBxB E l< E E { i Ex {c*
xhx E BE E i BBBxB u Vn =M (E] B<VM), f(b{) +n E l-l G{ |Gh
vi {h E M l, V + iE V *
98
00

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To ensure independence to the internal audit function emphasizing transparency in the systems and internal controls, the internal audit
of the company is entrusted to independent external firms of Chartered Accountants. The reports of internal audit are periodically
submitted to the management for appraisal, improvement and remedial measures, if any

CODE OF CONDUCT The company has designed a comprehensive model code of Business Conduct and Ethics for Board Members and Senior
Management personnel of the company in accordance with the Guidelines on Corporate Governance by DPE.The code is circulated
to all the directors and members in the senior management of the company. The code of conduct is available on the website of the
company www.fsnl.nic.in. All Board members and designated senior management personnel have affirmed compliance with the
Code of Conduct. A declaration to this effect signed by the managing Director is given at the end of this report.
MANAGEMENT DISCUSSION AND ANALYSIS REPORT : INDUSTRY & STRUCTURE It is learnt that the beginning of the scrap processing industry in India can be traced back to 1956 when the Managing Director of the
then TISCO contacted M/s Heckett Engineering Company, USA, ( a division of Harsco Corporation, (USA), which is considered the
pioneer in Scrap Recovery Technology in the world. The predecessor of Ferro Scrap Nigam Ltd, M/s Heckett Engineering Company
(USA) started its operation in 1957 in India at Tata Iron & Steel Company Limited (then TISCO, Jamshedpur) for mechanized scrap
recovery. Subsequently, in the year 1962, Rourkela Steel Plant and in 1964, the Indian Iron & Steel Company, Burnpur also
employed their services for scrap recovery.
M/s Heckett Engineering Company (USA) operated in India as the Indian Branch of the American Company. Pursuant to the
promulgation of Foreign Exchange Regulation Act, 1974, M/s Heckett Engineering Company (USA) either had to wind up its
operations or had to acquire an Indian partner who would take a majority stake. At the same time continuance of their operations in
India was considered to be beneficial to the steel plants. The solution was to form a new Company.
The Government of India desired that the operation of M/s Heckett Engineering Company, USA should be nationalised.
Consequently, MSTC Ltd (the erstwhile Metal Scrap Trade Corporation Ltd.,) then a subsidiary of SAIL was advised to begin work on
this decision. MSTC Ltd., after undertaking a comprehensive study recommended the formulation of an independent company for
this purpose and thus on the 28th of March, 1979, Ferro Scrap Nigam Limited in collaboration with M/s Harsco Inc., USA came into
existence.
The entire mechanized scrap recovery process technology of M/s Heckett Engineering Company as well as the equipments and
services of the operating personnel were transferred to FSNL, with 60% share holding by MSTC Ltd., and the remaining 40% share
holding by M/s Harsco Corporation, USA. Initially, FSNL was a subsidiary of SAIL and delinked from SAIL alongwith MSTC Ltd., in
1982. In the year 2002, M/s Harsco Corporation transferred their 40 % share holding to MSTC Ltd., thus FSNL became a wholly
owned subsidiary of MSTC Ltd.
Award of additional work to FSNLFSNL was formed with a view to recover and process scrap in all the public sector integrated steel plants. The scrap recovery &
processing jobs started in Bhilai Steel Plant in 1983, at Bokaro Steel Plant in 1984, at Visakhapatnam Steel Plant in 1990 and at
Durgapur Steel Plant in 1991.
In the meeting held at Ministry of steel on 21/12/1990 & 8/5/1991 it was decided that all the scrap recovery operations in the
integrated steel plants should be handed over to FSNL by 30.06.1991 replacing the existing private contractors. Accordingly, FSNL
acted in a phased manner and took over total scrap recovery operations at SAIL Plants. In the process of taking over of scrap
recovery at various plants, FSNL made huge investments for installing large facilities like Plant & Equipment, Machinery and
recruited large workforce required for the above operations. At Durgapur Steel Plant a workforce of 165 people of private contractors
were also absorbed in FSNL rolls.
Within a years time of the decision taken, FSNL was able to take over all the jobs relating to recovery of scrap including recovery from
current arisings and from dumps and is continuing till date.

99
00

B B Bx B/ F

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ix GE{E{x u =E, x{, <, E, nM{, J{]]h, b, BS<B-u, - C]-M

B -+<B{ pi +n vi (M) {iH f (} b{) G{ =M B |Gh E E
Vi * |Gi G{ E {xSGh/xEx i <{i j E { ] n Vi B < E E B
|Gi j E +v { G{ E h E +x v n { |Gh E +n E Vi * E{x u ]
B V vi |Gh, Uh (GxM), EE Uh (EE GxM), GxM +n B |nx E
Vi il BB] E OE E B +Ih B Mn E E x{ni E V (n 24 l
{ li)*
{xSGh E {U EU nE E vx +< Ihi E nJ V Ei * < i E< +S x E ix |iE
Ei B E n E j Ih * BBBxB u +{x Sxi Ij G{ |Gh < +
+{x +{ Mnx |nx E V , +li, B <{i xx E |G xEx B +, V l
{nl x Vi l, =x vi+ E |Gh E |G* BE B | V n E i { G{ +i
ixiE Si Ei B J { E vi+ E {xSGh E V E * Ei r + E <{i
=i{nx G{ E |M =V, |EiE vx ( +E, E B Sx {il) V +n E E j
Si E l-l, V, +n E |nh il Jnx +{ E i (iE nJ)*
vi {xSGh {E |EiE +E E lx { 1 ]x <{i E {xSGh 1 ]x Bx E
{xSGi {nl E ={M Ex x Si
{xSGh x
x < =V E Si
Si
B <{i G{ E B 74% +E 1.2 ]x
C<] +E 8 ]x
Bx G{

95%

0.7 ]x

E{ G{

85%

Sx {il

0.5 ]x

ti 14 M] P]

G{ E ={M Ex
b<+C<b (CO2) E
=iVx E
B <{i E B 58%
Bx G{

92%

E{ G{

65%

+E E u {{Mi v <{i =i{nx E nx x Ex b<+C<b E =iVx E Ei B <{i

j u G{ M E {xSGh E v E ih E Ii E V * SE Ex Gb]+ BE
=i{n x SE , B <E +lE V Ei , BBBxB u {xSGi/|Ei/{{i G{ B
vi E BV <{i j E u Ex Gb] { E +vE vx E< V Ei *
<{i j E +{
<{i j u J V Jn/+i E lx {, BBBxB u =Mi/|iIi/|Gi {nl (G{
M) E ={M E |i +{x Mi E +vE Si E V , V <{i j E +v J E |J
M , V E xx iE {Ii :-

100
00

B B Bx B/ F

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Present Activities The Company undertakes the recovery and processing of scrap from slag and refuse dumps in the steel plants at Rourkela, Burnpur,
Bhilai, Bokaro, Durgapur, Visakhapatnam, Duburi, BHEL-Haridwar, Rail Wheel Factory- Bengaluru & SAIL-VISP, Bhadravati. The
scrap recovered is returned to the steel plants for recycling/disposal and the company is paid processing charges on the quantity
recovered at varying rates depending on the category of scrap. The Company is also providing Steel Mill Services such as slag
processing, screening, coke screening, scarfing of Slabs and also undertakes Custodian & Warehousing services to customers of
MSTC (managing 24 sites across the country).

Benefits of recycling One has only to look back a few decades to see the depletion that has overcome the worlds resources today. No wonder,
conservation is the chant of every developed and developing country in the present, FSNL is contributing its mite towards this end in
its chosen field of ferrous scrap recovery. A process that reclaims ferrous metallic from muck and debris arising from iron and steel
making process, which was hitherto considered waste. An effort that gains millions of rupees worth of metallics recycled annually for
the country compared to import of scrap. Over a period of time, it has been established that usage of ferrous scrap to produce steel
leads to considerable savings in energy, natural resources (Iron ore, coking coal & limestone), water, reduction in water pollution, air
pollution and mining wastes. [ Refer Table]

Environmental Benefits of Metals Recycling -

Energy saved using

recycled material versus
Virgin Ore

Recycling 1
Tonne of Steel
Saves

Recycling 1 Tonne of
Aluminium saves

Reduction of CO2
Emissions by
using scrap

74% for Iron and Steel Scrap

1.2 Tonnes of Iron Ore

8 Tonnes of Bauxite Ore

58% for Iron and

Steel Scrap

95% for Aluminium crap

0.7 Tonnes of Coal

14 Megawatt Hours of
Electricity

92% for Aluminium

Scrap

85% for Copper Scrap

0.5 Tonnes of Limestone

65% for Copper Scrap

With the recycling of Scrap & Slag, Steel Plants are protecting the earths atmosphere by not generating carbon dioxide for
production of equivalent amount of steel from ore by traditional process. Since the Carbon Credit has now turned into a product and
monetary benefit can be drawn, Steel Plants may earn handsome amount of Carbon Credit for the Scrap and Slag being recycled,
recovered / supplied by FSNL.

Intangible Benefit to Steel Plants Every year Steel Plants are saving considerable amount towards their input cost by consuming the recovered/salvaged processed
materials (scrap & slag) by FSNL instead of buying from open market/import which is a major contributor to the bottom line of Steel
Plants as shown in the table given below:-

101
00

B B Bx B/ F

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(Ec { )
G
h
2009-10
2010-11
2011-12
1.
viE =M
5576.49
5972.70
4882.68
2.
Bb M E
{xSGh Sx
-{il Si
115.81
112.27
132.32
M
5692.30
6084.97
5015.00
BBBxB E H
i E u E{x E x ix h-II |nx E M*

2012-13
6620.10

2013-14
6279.97

2014-15
6449.39

107.29
6727.39

118.43
6398.40

119.34
6568.73

j B x, V Mx]E {], B<-BxS], O<bM Bhb GxM {] +n OE <{i j E ]

+Ei+ E +{i E B Ex{, i: +E{i, B BBBxB u xi * +x Mi
={Eh E ={Eh xi+ Jn Vi *
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E E BE U] Sx <{i j E =i{nx J E |iE {h Mix {c Ei *
BE B Ij V x B VJ x E V +x lB < E E x E x V] {i , Exi
BBBxB u < E E +{x OE <{i j E {h i] E l {z E V *
BBBxB E BE i xMi iExE , n <E j , +SU E EiH +xi B E
x vx , E Mi ={Eh E BE c, j B i vB , =SSi V + ,
BE E =t x E V < xE/E xE E |{i , + +i Exi |E E <E
{ 50 +vE E +x *
EV
i -Ji: G{ B M |Gh
OE E +Ei+ { |iG i +vE v* E =t x E V OE E +Ei+ {
|iG H Ex E { E{x E z +{SE i+ E {h Ex i *
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9001:2008, 14001-2004 B +BSBBB 18001:2007 M E V SE *
x{nx
{i k 2014-15 O ={v =Jx * < BBBxB u +vE vi |i E
=i{nEi |{i E M<* G{ E =M 23,05,115 ]E ]x il M Sx B |Gh 59,67,220 ]E ]x {
{S, V | + iE E Eix * k {h E ii Mi E ix x{nx =Jx B
2014-15 E B Zi Y{x E h =iE] x E + * l , E{x u ii ={ E VB
` 94.37 J E Si nV E M<*

102
00

B B Bx B/ F

S N L

( ` in crores)
Sl No
1.
2.

Description

2009-10

2010-11

2011-12

2012-13

2013-14

2014-15

From recovery of
Metallics
Savings in Lime
Stone due to
Recycling of
LDSlag
Total

5576.49

5972.70

4882.68

6620.10

6279.97

6449.39

115.81
5692.30

112.27
6084.97

132.32
5015.00

107.29
6727.39

118.43
6398.40

119.34
6568.73

Strength of FSNL The Company was awarded Mini-Ratna Category II by the Government of India.
It is to mention that plant & machinery such as Magnetic Separator, Fe-enrichment, Grinding& Screening Plant are tailor made,
inhouse designed & manufactured by FSNL to meet the specific requirement of the customer steel plants. Other Heavy Earthmoving
Equipments (HEMs) are procured from Original Equipment Manufacturers (OEMs).
FSNL has undertaken the challenging activity of hot slag pit management round the clock in the Steel Plants which is so critical that
even a minor deviation in services will result in serious adverse consequences in Steel Plants line of production. It is an area where
any other agencies can dare to venture due to the requirement of high level of investment and risk, which FSNL is performing to the
full satisfaction of its customer steel plants.
FSNL inherited a World class technology, having plants across the country, a large disciplined & skilled workforce with good work
culture, owning a large fleet of Heavy Earth Moving Equipments, Plants & infrastructures, highest market share, trust of regulatory /
statutory body being a PSU company and last but not the least FSNL is backed by more than 50 years of experience.
Weakness - Single line of business - mainly scrap and slag processing.
- High response time to meet customers requirement. Being a public sector, the company is required to comply with various codal
formalities before responding to customers requirement.
- High cost of operation due to high wages of PSU.
Integrated Management System FSNL implemented Integrated Management System - ISO 9001:2008, 14001:2004 & OHSAS 18001:2007, in the year 2011 at its
Corporate Office as well as all Units.
Performance During the just concluded financial year 2014-15, the overall achievement has been remarkable. FSNL could also achieve increased
productivity per employee considerably in the year. Recovery of Ferrous Scrap has been 23,05,115 M.T. and handling & processing
of Slag has reached 59,67,220 M.T. which is a record since inception. Even under financial parameters, the performance has been
remarkable compared to earlier years and the likely MOU rating shall be Excellent for the year 2014-15. Further, the Company could
effect savings of ` 94.37 lakhs by undertaking austerity measures.

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Outlook FSNL firmly believes that the vision of Make in India launched by our Honble Prime Minister will strengthen the Indian PSUs and
with mutual trust and cooperation, the PSU fraternity will become a force to reckon with in the near future. FSNL is fully poised to work
with PSUs in other sectors and expand its horizons.
Opportunity -Future road map
As far as future road map of FSNL is concerned, due to expansion activities of the Steel Plants, the requirement of scrap is expected
to increase and FSNL looks up to this as an opportunity and it is fully geared up to take up these additional jobs of the Steel Plants in
the years ahead. FSNL is executing out its plan to revamp/replace the existing fleet of equipment under Addition / Modification /
Replacement in a phased manner to achieve cost reduction and increase productivity as well as efficiency. FSNL is exploring the
possibilities for acquiring the business in areas viz., Overburden removal at Mines (Coal, Ore etc.,) Scrap Management at Air India,
Recovery of stainless steel scrap from stainless steel slag at Salem Steel Plant and Recovery of non-ferrous metallics.
Threats :
- Modernisation of Steel Plants has introduced advanced technology resulting in less generation of scrap.
- New entrants, specially private companies, in the area of recovery, processing of scrap and handling of scrap.
Risks & Concerns:
1) The area of concern for FSNL is the reduction in quantity of scrap due to modernization of steel making technology and
operational discipline.
2) Single line of business and FSNLs performance is directly related to the business cycle of Steel industry.
SEGMENT REPORTING :
During the year the company was engaged in the business of scrap recovery and allied jobs for various steel plants in India which as
per Accounting Standard AS- 17 is considered the reportable business segment. Beside scrap recovery and allied jobs, company
has rendered services of warehouse management but since revenue earned from this service is less than 10% of the total revenue
the same does not constitute a reportable segment The geographical segmentation is not relevant, as the company has no business
operation outside India.
Identification of segments:
The Companys operating business are organized and managed separately according to the nature of products and services
provided, with each segment representing a strategic business unit that offers different products and serves different markets. The
analysis of geographical segments is based on the areas in which major operating divisions of the Company operate.
Inter segment transfers :
The company generally accounts for inter segments sales and transfers as if the sales or transfers were to third parties at current
market costs.
Unallocated items :
The Corporate and other segments includes general corporate income and expense items which are not allocated to any business
segment.
DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE :
The total earnings of the company was ` 27578.38 lakhs including service charges of ` 26,410.45 lakhs as compared to the previous
years figure of ` 23,787.67 lakhs and ` 22,414.43 lakhs respectively. The cost of operation has shown an increase of 11.28% as
compared to the previous year. The increase in the expenditure is mainly attributable to normal increase in the wages of employees
and provision for revision in the wages of non-executive employees, decrease in discounting factor for actuarial valuations of unfunded provisions in connection with post retirement medical benefit and leave salary.There is considerable saving in Miscellaneous
expenditure of ` 136.85 lakhs during the year.

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x vx E
|i E i, 2014-15 E | ES E +iE vx il ={Eh xi B |J |Ih
lx E v |Ih nx i BE E Vx x< M<*
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n-xn vi |Eh E vxE |vE u x i E< E] +Sx V E M< x +lnb n
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3. E n-xn E +x{ E{x u + xi |Si E M< , V xnE b u +xni *
J {Ih i HMi {E Ex E H E E x M , B < xi E ii E E u
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6. B E n E J {iE Ei x E M V E r x *
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E{x E {Sx J (+<Bx x) 27102 ] 1989 V++< 005468 *
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|v xnE
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HUMAN RESOURCES DEVELOPMENT

Like every year, a yearly plan was chalked-out at the beginning of the year 2014-15 for imparting training to all employees
(Executives as well as Nonexecutive employees) through Internal & External sources like OEMs & reputed training institutions.
Based on recommendations of the concerned authorities with regard to the training needs endorsed in the Annual Performance
Appraisal forms of the employees, the employees were nominated for undergoing such training programmes with a view to enhance
their skill & knowledge as well as to acquaint them with the day-to-day developments in the industrial technologies in the concerned
field.
ADEQUACY OF INTERNAL FINANCIAL CONTROLS WITH REFERENCE TO THE FINANCIAL STATEMENTS :
The company has an efficient system of internal control to monitor the activities of the company to achieve the business objectives
with accuracy, clarity and transparency of financial reporting. Present internal control ensures statutory compliance with rules, laws
and regulations and with the laid down policies and procedures of the company.
To ensure independence to the internal control system, internal audit functions Emphasizing transparency in the system and
therefore, the internal audit of the company is entrusted to independent external firms of Chartered Accountants.The reports of
Internal Audit are periodically submitted to the management for improvement, appraisal and remedial measures, if any.

FURTHER DISCLOSURES AS PER CORPORATE GOVERNANCE GUIDELINES:

1. There is no material significant related party transaction that may have potential conflict with the interest of the company.
2. No non-compliance by the company has been observed / reported. No statutory authority has issued any strictures or levied
Penalty or any matter related to any guidelines issued by the Government during the last three years.
3. Company has formulated a whistle blower policy in line with Government guidelines duly approved by the board. No person has
been denied personal access to Audit Committee and no one has reported anything under this policy.
4. In the absence of independent directors on the Board, Corporate Governance Guidelines has been complied as far as possible.
5. All Presidential guidelines have been complied with by the company for the year and also during the last three years.
6. No items of expenditure have been debited in books of accounts which are not for the purpose of business.
7. No expenses are incurred which are personal in nature for the Board of Directors and Top Management.
8. The financial results are available in the website of the company i.e.www.fsnl.nic.in
Company Identification Number (CIN)
The CIN of the Company is: U27102CT1989GOI005468
CAUTIONARY STATEMENT:
Statements in the Management Discussion and Analysis describing the Companys objectives and expectations may be forward
looking statements.Actual results may differ materially from those expressed or implied which could make a difference to the
companys operations including continuation of business on nomination basis from the public sector steel plant.

For and on behalf of Board of Directors

S.K.Tripathi
Chairman
Place : New Delhi
Date: 10/09/2015
MDS CERTIFICATION
In compliance of Corporate Governance Guidelines, the Board Members and the Senior Management Personnel have confirmed
compliance with the MODEL CODE OF BUSINESS CONDUCT AND ETHICS for the Financial Year 2014-2015.
Rajib Bhattacharya
MANAGING DIRECTOR

107
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Annexure A to Report on Corporate Governance

TERMS OF APPOINTMENT & REMUNERATION MANAGING DIRECTOR
1.1 Period : His appointment will be for a period of five years w. e. f. 09.02.2015 in the first instance or till the date of superannuation or
until further orders, whichever event occurs earlier and in accordance with the provisions of the Companies Act, 1956 as
amended. The appointment may, however, be terminated even during this period by either side on 3 months notice or on
payment of three months salary in lieu thereof.

1.2 After the expiry of the first year, the performance of Shri Rajib Bhattacharya will be reviewed to enable the government to take a
view regarding continuance or otherwise for the balance period of tenure.
1.3 Headquarters : His headquarters will be at Bhilai, Chhattisgarh where the registered office / headquarter of the FSNL is
located. He will be liable to serve in any part of the country at the discretion of the FSNL.
1.4 Pay : Shri Rajib Bhattacharya will draw a basic pay of ` 65,000/- per month in the scale of ` 65,000-75,000/- w.e.f. 09.02.2015.

1.5Dearness Allowance : He would be paid DA in accordance with the new IDA scheme as spelt out in the DPEs O.M. dated
26.11.2008 and 02.04.2009.
1.6 Annual Increment : He will be eligible to draw his annual increment @ 3 % of basic pay on the anniversary date of his appointment
in the scale and further increment on the same date in subsequent year until the maximum of pay scale in reached. After reaching
the maximum of the scale, one stagnation increment equal to the rate of last increment drawn will be granted after completion of
every two year period from the date he reaches the maximum of his pay scale provided he gets a performance rating of Good or
above. He will be granted a maximum of three such stagnation increments.

1.7 House Rent Allowance : He will be entitled to HRA as per the rates indicated in O.M. dated 26.11.2008.

1.8 Residential accommodation and recovery of rent for the accommodation so provided.
1.8.1 Companys own accommodation : Wherever FSNL has built residential flats in the industrial township or purchased
residential flats in the cities, arrangements would be made by the FSNL to provide a suitable residential
accommodation to him.

1.8.2 Leased accommodation : if FSNL either in township or is not able to provide residential accommodation out of the
residential flats & purchased by it in the Headquarter, suitable accommodation could be arranged by the FSNL by
taking the premises on lease basis at headquarter of the company. The Board of Directors may decide the size, type
and locality of such accommodations as per DPE O.Ms dated 05.06.2003, 26.11.2008 and 02.04.2009. For purpose
of CTC, 30% of the basic pay may be considered as expenditure on Housing.

1.8.3 Self lease : If he owns a house at the place of his posting ( Headquarter) and is desirous of taking his own house on
self-lease basis for his residential purposes, FSNL can permit him to do so provided he executes a lease-deed in
favour of the FSNL. The Board of Directors may decide the size, type and locality of such accommodations.

1.8.4 Repair/maintenance of leased accommodation: The responsibility for repair and maintenance of lease
accommodation is that of lessor, lease rent will be allowed only for 12 months in a year and no additional amount will
be provided towards repair / maintenance of lease accommodation.

1.8.5 Existing lease deeds:- The lease agreement signed by FSNL, in respect of the accommodation taken on lease basis
for him, if any, prior to 26.11.2008 would not be re-opened during the pendency of the lease period. The lease money,
in other words, should not be hiked till the expiry of lease period. This proviso would be applicable even if he had been
permitted to take his own house on self-lease basis.
00
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1.8.6

1.9

1.10

1.11
1.12
1.13
1.14
1.15

1.16.

2.
3.

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1.8.6 Office accommodation: No office accommodation at the expense of FSNL would be provided or arranged by FSNL at
his residence.
1.9 Rent Recovery :
1.9.1.FSNLs township / own flats : Recovery of rent for the accommodation arranged by the company in its own township
or from the pool of flats purchased by it in cities and towns and so allotted to him would be made at the rate of 10% of
basic. pay from 09.02.2015 or the standard rent fixed by the company whichever is lower. Where FSNL has prescribed flat
rates of recovery in respect of accommodation in its townships depending on each type of accommodation i.e.
recovery of rent on uniform basis for each type of accommodation, then rent would be paid by him as prescribed by the
FSNL.
1.9.2 Leased accommodation : In respect of lease accommodation arranged by the FSNL, rent would be recovered from
him at the rate of 10% of basic pay from 09.02.2015 or the actual rent whichever is lower.
1.10 Conveyance : He will be entitled to the facility of staff car for private use indicated below:
Name of City
Delhi, Mumbai, Kolkata, Chennai
Bangaluru, Hyderabad.

Ceiling on non-duty journeys

1000KM/ PM

All other cities

750KM/PM

Monthly rate of recovery for non-duty journeys would be as follows:

Non-air conditioned car
Below 16 HP
Above 16 HP

Rupees per month

325/490/-

1.11 Leave : He will remain subject to the leave Rules of FSNL.

1.12 Other Allowances / Perks : The Board of Directors will decide on the Allowances and perks subject to the maximum ceiling of
50% of his basic pay as indicated in O.M. dated 26.11.2008 and 02.04.2009.
1.13 Performance Related Payment : He shall be eligible for approved PRP as per O.M.s dated 26.11.2008, 09.02.2009 and
02.04.2009.
1.14 Superannuation Benefits : He shall be eligible for superannuation benefit based on approval scheme as per O.Ms dated
26.11.2008 and 02.04.2009.
1.15 Conduct, Discipline & Appeal Rules:
1.15.1 The Conduct, Discipline and Appeal Rules framed by FSNL limited in respect of their non-workmen category of
staff would also mutatis mutandis apply to him with a modification that the Disciplinary Authority in his case would be
the President of India.
1.15.2 The Government also reserves the right not to accept his resignation, if the circumstances so warrant i.e. the
disciplinary proceedings are pending or a decision has been taken by the competent authority to issue a charge
sheet to him.
1.16 Restriction on Joining Private Commercial Undertakings after Retirement / Resignation: Shri R. Bhattacharya after
retirement / resignation from the service of FSNL shall not accept any appointment or post, whether, advisory or
administrative, in any firm or company whether Indian or foreign, with which FSNL has or had business relations,
within one year from the date of his retirement / resignation, without prior approval of the Government.
2.

In respect of any other item, concerning him which is not covered in preceding paras, he will be governed by the relevant Rules /
Instructions of FSNL / Government.

3.

This issues with the concurrence of the Finance Division vide their Dy. No. 25/ IPC/2015 dated 19.03.2015
For and on behalf of Board of Directors
S.K.Tripathi
Chairman

Place : New Delhi

Date: 10/09/2015

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 G{ xM ]b
S, 2015 E ix {j

31

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31/03/2015

31/03/2014

2
3

200.00
15,716.45

200.00
14,426.39

+nx E { +]x iE i
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346.40
4,398.60

369.76
3,042.98

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6
7
8
9

2,023.20
2,344.90
1,960.52
3,190.16
30,180.23

1,054.00
1,552.82
1,686.66
1,757.07
24,089.68

10
10.1
10.2
10.3
10.3

5,674.57
5.08
124.13
67.25

5,277.67
7.22
83.58
67.25

11
12
13

604.45
674.31
214.62

426.89
1,030.19
320.80

14
15
16
17
18

345.86
6,370.16
11,333.11
224.59
4,542.10
30,180.23

346.51
1,389.71
10,052.32
181.72
4,905.82
24,089.68

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112
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+vI

FERRO SCRAP NIGAM LIMITED

BALANCE SHEET AS AT 31 ST MARCH'2015
` in lacs
Particulars

Note

Current Year
31.03.2015

Previous Year
31.03.2014

200.00
15,716.45
-

200.00
14,426.39
-

EQUITY AND LIABILITIES

Shareholders funds
Share capital
Reserves and surplus
Money received against share warrants

2
3

Share application money pending allotment

Non-current liabilities
Long term borrowings
Deferred tax liabilities (net)
Other Long term liabilities
Long-term provisions

4
5

Current liabilities
Short-term borrowings
Trade payables
Other current liabilities
Short-term provisions

6
7
8
9
TOTAL

ASSETS
Non-current assets
Fixed assets
Tangible assets
Intangible assets
Capital work-in-progress
Intangible assets under development
Non-current investments
Deferred tax assets (net)
Long-term loans and advances
Other non-current assets

10
10.1
10.2
10.3
10.3
11
12
13

Current assets
Current investments
Inventories
Trade receivables
Cash and Bank Balance
Short-term loans and advances
Other current assets

14
15
16
17
18

TOTAL
Significant Accounting Policies & Notes on Accounts

346.40
4,398.60

369.76
3,042.98

2,023.20
2,344.90
1,960.52
3,190.16
30,180.23

1,054.00
1,552.82
1,686.66
1,757.07
24,089.68

5,674.57
5.08
124.13
67.25
604.45
674.31
214.62

5,277.67
7.22
83.58
67.25
426.89
1,030.19
320.80

345.86
6,370.16
11,333.11
224.59
4,542.10
30,180.23

346.51
1,389.71
10,052.32
181.72
4,905.82
24,089.68

1 to 48

The accompanying notes are integral part of the Financial Statements

As per our report of even date
For Agrawal & Pansari
For and on behalf of the Board of Directors of Ferro Scrap Nigam Limited
Chartered Accountants
FRN . 003350C
CA V.K. Adwani
A.P. Sharma
S.K.Chakraborty
Partner
Company Secretary
Deputy General Manager (F&A)
Membership No.: 401080
Place : Raipur
Date : 03/06/2015

B.B.Singh
Director

Rajib Bhattacharya
Managing Director

113
00

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S N L

S.K. Tripathi
Chairman

31

|Sx V
E G
+x +
E V

G{ xM ]b
S, 2015 E {i E B B x Ji E h
|i
{j
31/03/2015

JS
|H O E Ei
E E Jn
i S {ix
ES +x JS
k Mi
B {vx JS
+x JS
E JS
+vh B J n il E E {
+vh n
{vE Vx B E E {
J n
J n B E {
Vb {vE +/(JS)
E {
E JS
(1) E E
(2) +lMi E
ii |Sx +v E B (x)
n |Sx /(x)
n |Sx E E JS
n |Sx /x (E{i)
+v E B /(P])
n|x:- |i ={Vx: (`1000 |i +Ei )
(1) E
(2) ixEi
i{h JEx xi B Ji+ { {jE
Mi {j k h E +z Jb
il E |inx E +x
i, +O B {
xn J{
{VEh G.003350
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Zn
ni G.401080
{

Mi
31/03/2014

19
20

26,410.45
1,167.93
27,578.38

22,414.43
1,373.24
23,787.67

21

3,002.70

3,177.40

22
23
10

10,785.84
123.79
967.24

8,303.84
122.63
1,288.69

24

10,145.28
25,024.85

9,595.78
22,488.34

25

2,553.53
15.33
2,538.20

1,299.33
48.76
1,250.57

26

2,538.20
(1.80)
2,536.40

1,250.57
(7.74)
1,242.83

1,004.44
(177.56)
1,709.52

399.44
1.11
842.28

27
27

1,709.52

842.28

8,547.59
8,547.59

4,211.39
4,211.39

1 48

i B |v xnE- G{ xM ]b E +
B.{.
E{x S

B.E.SGi
={-|vE(k J)

..
xnE

V ]]S
|v xnE
114
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B.E.j{`
+vI

FERRO SCRAP NIGAM LIMITED

STATEMENT OF PROFIT & LOSS FOR THE YEAR ENDED 31 ST MARCH'2015
Current Year
31.03.2015

` in lacs

Particulars

Note

Revenue From Operations

Sale of Services

19

26,410.45

22,414.43

Other income

20

1,167.93

1,373.24

27,578.38

23,787.67

3,002.70
10,785.84
123.79
967.24
10,145.28

3,177.40
8 ,303.84
122.63
1,288.69
9,595.78

25,024.85

22,488.34

2,553.53

1,299.33

15.33

48.76

Total Revenue
Expenses:
Cost of materials consumed
Purchase of Stock-in-Trade
Change in Inventories
Employee benefits expense
Finance costs
Depreciation & amortisation expenses
Other expenses

21

22
23
10
24

Total expenses
Profit before exceptional and extraordinary items and tax
Exceptional items

25

Previous Year
31.03.2014

2,538.20
2,538.20
( 1.80)

1,250.57
1,250.57
(7.74)

Profit Before Tax

2,536.40

1,242.83

Tax expense:
(1) Current tax
(2) Deferred tax

1,004.44
(177.56)

399.44
1.11

Profit (Loss) for the period from continuing operations

Profit / (loss) from discontinuing operations
Tax expense of discontinuing operations
Profit / (loss) from discontinuing operations (after tax)
Profit / (loss) for the period

1,709.52
1,709.52

842.28
842.28

8,547.59
8,547.59

4,211.39
4,211.39

Profit before Prior Period Adjustments and tax

Extraordinary Items
Profit before extraordinary items & tax
Add: Prior Period Income/(Expense)

26

Earnings per equity share:(Face value ` 1,000 each)

(1) Basic
(2) Diluted
Significant Accounting Policies & Notes on Accounts

27
27
1 to 48

The accompanying notes are integral part of the Financial Statements

As per our report of even date
For Agrawal & Pansari
For and on behalf of the Board of Directors of
Chartered Accountants
Ferro Scrap Nigam Limited
FRN . 003350C
CA V.K. Adwani
A.P. Sharma
S.K.Chakraborty
Partner
Company Secretary
Deputy General Manager (F&A)
Membership No.: 401080
Place : Raipur
B.B.Singh
Rajib Bhattacharya
S.K. Tripathi
Date : 03/06/2015
Director
Managing Director
Chairman

115
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 G{ xM ]b

2014-15

` J
2013-14

2,553.53

1,299.33

2014-15 E B xEn | h

E. |Sx Miv =i{z xEn |

x E h E +x E il +vh
n E { r
Vc /(E]i)
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v V |{i V +
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n { r/(E)
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i S r/(E)
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|iI E
{vE Vx E { xEn |
Vc: {vE +
+vh n E { r xEn |
P]: +vh n r JS
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Vc/(E]i)
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+x M ix +i r
+x nPEE ni r/(E)
nPEE |vx r/(E)
+vh n E ={i |Sx Miv E nx il
+x M ix +i B
ni E Vx E ={i r xEn
| ()
J. x Miv =i{z xEn |
+xi:
{VMi {Vx+ E B i- S E
l +i E ]]-Ji i G
|{i V
:
x{]x E <iV i+i
ExMi {V r +ih l +i E +Vx
{VMi {Vx+ E B i S r
x Miv E nx r xEn +i/()
M. k Miv =i{z xEn |
+xi

+i
|ii
ih E
k Miv r xEn
xEn B i xEn r r (E+ J+ M)
xEn B i xEn (+E)
xEn B i xEn (+i)
( il E |inx E +x)
i, +O B {
xn J{
{VEh G.003350
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ni G.401080

967.24
(970.96)

(3.72)
2,549.81

969.20
792.08
273.86
1,433.09
0.65
(4,980.45)
(42.87)
(792.17)

419.26
(23.36)
1,355.62

(2,346.61)
203.20
1,004.44
(801.24)
(1.80)
(803.04)
(15.33)
(818.37)

1,751.52

1,288.69
(977.74)
178.92
(287.04)
133.72
817.66
91.53
205.85
68.39
(8,309.31)

(8.08)
4,061.30
72.65
206.70

933.15
83.47
123.22
970.96

1,177.65

57.96

310.95
1,610.28

(7,100.28)
(5490.00)
399.44
(5,889.44)
(7.74)
(5,897.18)
(48.76)
(5,945.94)

4,332.57

(1,613.37)
118.24
977.74

1,095.98

44.83

1,534.79

1,592.75
(415.10)

300.00
41.90
68.52

410.42
(410.42)
107.63
502.32
609.95

1,323.44

168.45
28.63

1,368.27
(272.29)

197.08
(197.08)
(2,082.74)
2,585.06
502.32

i B xnE hb- G{ xM ]b E +
B.{.
B.E.SGi
E{x S
={-|vE(k J)
..
V ]]S
B.E.j{`
xnE
|v xnE
+vI
116
62

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FERRO SCRAP NIGAM LIMITED

CASH FLOW STATEMENT FOR THE YEAR 2014-15
Particulars
2014-15
A. Cash flow arising from Operating Activities
2,553.53
Net Profit before Tax and Exceptional items as per
Statement of Profit and Loss:
Add / (Deduct) :
Depreciation and Amortisation expenses
967.24
Interest Income from FDR
(970.96)
(3.72)
2,549.81
Operating cash profit before working capital changes
Add / (Deduct) :
Increase / (Decrease) in Short Term Borrowing (secured)
969.20
Increase / (Decrease) in Trade Payables
792.08
Increase / (Decrease) in Other Current Liabilities
273.86
Increase / (Decrease) in Short Term Provisions
1,433.09
(Increase) / Decrease in Inventories
0 .65
(Increase) / Decrease in Trade Receivable
(4,980.45)
(Increase) / Decrease in Short Term Loans & Advances
(42.87)
(Increase) / Decrease in Other Current Assets
(792.17) (2,346.61)
203.20
Cash generated from operations
Direct Taxes
1,004.44
(801.24)
Cash flow before prior period adjustments
Add : Prior Period Income
(1.80)
( 803.04)
Net Cash Flow before Exceptional Items
Less: Exceptional Items (Net Expenses)
(15.33)
(818.37)
Net Cash flow from operating activities after Exceptional Items
Add / (Deduct) : (Increase) / Decrease in Non Moving Inventories
(Increase) / Decrease in Other Non Current Assets
419.26
Increase / (Decrease) in Other Long term liabilities
(23.36)
Increase / (Decrease) in Long-term provisions
1,355.62 1,751.52
Net Cash Inflow/(outflow) in the course of operating
activities after exceptional items and after adjustment
Of Other Non Current Assets & Liabilities

` In lacs
2013-14
1,299.33
1,288.69
(977.74)

178.92
(287.04)
133.72
817.66
91.53
205.85
68.39
(8,309.31) (7,100.28)
(5,490.00)
399.44
(5,889.44)
(7.74)
(5,897.18)
(48.76)
(5,945.94)
(8.08)
4,061.30
72.65
206.70

9 33.15

B. Cash flow arising from Investing Activities

Inflow:
Decrease in Inventory for Capital Projects
Sale including write off of Fixed Assets
Interest received
Outflow:
Tangible Assets Awaiting Disposal
Acquisition of fixed assets net of transfer from CWIP
Net Cash inflow/ (Outflow) in the course of Investing Activities
C. Cash flow arising from Financing Activities
Inflow:
Outflow:
Interim Dividend
Proposed Dividend
Dividend Distribution tax
Net Cash from Financing Activities

83.47
123.22
970.96
57.96
1,534.79

300.00
41.90
68.52

1,177.65
1,592.75
( 415.10)

410.42
( 410.42)

310.95
1,610.28

4,332.57

(1,613.37)

118.24
977.74
44.83
1,323.44

168.45
28.63

1,095.98
1,368.27
( 272.29)

197.08
( 197.08)

107.63
(2,082.74)
Net increase in Cash and Cash Equivalents ( A+B+C)
502.32
2,585.06
Cash & Cash Equivalents ( Opening )
609.95
502.32
Cash & Cash Equivalents ( Closing )
As per our report of even date
For Agrawal & Pansari
A.P. Sharma
S.K.Chakraborty
Chartered Accountants
Company Secretary
Deputy General Manager (F&A)
FRN . 003350C
CA V.K. Adwani
B.B.Singh
Rajib Bhattacharya
S.K. Tripathi
Partner
Director
Managing Director
Chairman
Membership No.: 401080
Place : Raipur Date : 03/06/2015

117
62

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 G{ xM ]b
xMi VxE :
G{ xM ]b H Ij E BE E{x V n.28.03.1979 E xMi <* ix <{i j E
+Vx x ix II VxE Ij (+<.B.B. |hi) i E E E{x * B.B.].. ]b E
{hi: i E E * B.B.Bx.B.<{i j B <{i xh E nx Vxi M il +{]
G{ E E + |Gh E E E Ei * G{ xM ]b OE E +Ei+ E +x vx
] ` B M b <{i Mx M E Jn< f<, <{i E E |Gh, +Ei il
G{ J-J E B Ei B |nx Ei * B.B.Bx.B. E +SUnx, x] j, vx ]`
il c |H EB Vx Bb M E {< il Uh E E E Ei * Mn ={Jb il J
Ehb V Mn J ]i * E{x B.B.].. ]b, B.]. ]b il n {]EE ]b E
{IE E Mn |vx |nx Ei *
1. i{h J xi :
1.1 JEx E +v:
E{x +{x J+ E E{x +vx, 2013 E |vx E +x{x xi: Ei JEx ri
(V B B { )+ Exp E u xvi E{x (J xE) x 2006 (vx i M +xM E
x E{x +vx 2013 E { ) E +x {{E BiE Mi M {ri E ii i +v
{ xxJi Ji *
1.2 |CEx E ={M:
k h E i E B Vi +Ex B +xx, V +i + ni+ E =Ji E il
k h E il E i +i + ni vi =nvh+ E il =Ji + + E
=Ji E |i Ei * iE {h B +Ex E +i E = +v Ei E M ,
V +v Yi/Exi + *
1.3 l +i:
l< +i E {j b]/x] E r Mi Si B Ii n E< , E v]E nJ M *
V { M< Vx E V +v iE nJ M *
}] E, V i E +lE nM, {V {hi E M il = +i +i
E { nJ M *
ExMi {V E Ex Mi { il V {Mx ={E il l +i E Mi, V E
ixi iJ =E +i ={M E B + iE i x , i *
E/i l +i r Ji +xxi r |{ E xxi { Ei *
x{]x E |iI l +i +{x r +Ji { +x M-Vn +i E ii MEi
CE <x +i E x ii |Sx { H E n M il E G/x
E B J + * E, V |vx E =n E Eli +i E E< M ix-{j il { BE
E nx x] x i i i = ix +i E { MEi E Vi *
1.4 x:
l< +i { E |vx E{x +vx 2013 E +xS-11 xvi |{ Jc J v E
+v { E M *
118
00

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FERRO SCRAP NIGAM LIMITED

Corporate Information:
Ferro Scrap Nigam Limited is a joint sector company, incorporated on 28-3-1979. Presently it is "Mini Ratna II PSU" (IMS Certified) a
Government of India company under Ministry of Steel. It is a wholly owned subsidiary of MSTC Limited. FSNL undertakes the job of
recovery and processing of scrap from slag and refuse generated during iron and steel making at Steel Plants. Ferro Scrap Nigam
Limited Offers specialized services for Dig and haul of Blast Furnaces & Steel Melting Shop slag at slag yards, Processing of iron and
steel skulls, mill rejects & maintenance scrap as per customer's requirement. FSNL also offers scarffing of slabs, crushing and
screening of LD slag to be used in sinter plant, blast furnace and rail ballast. It removes sludge & ash deposit from sludge
compartments & ash ponds. The company is also providing warehouse management service to the clients of MSTC Limited, STC
Limited and Haldia Petrochemicals Limited.

1. SIGNIFICANT ACCOUNTING POLICIES:

1.1BASIS OF ACCOUNTING:
The Company maintains its accounts on accrual basis following the historical cost convention in accordance with generally
accepted accounting principles ["GAAP"], in compliance with the provisions of the Companies Act,2013 and the Accounting
Standards as specified in the Companies (Accounting Standard) Rules, 2006 (As amended including applicable sections of New
Companies Act , 2013), prescribed by the Central Government.
1.2 USE OF ESTIMATES:
The preparation of financial statements requires estimates and assumptions to be made that affect the reported amount of assets
and liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting
period. The difference between the actual results and estimates, if any, are recognised in the period in which the
results are known / materialised.
1.3 FIXED ASSETS:
Fixed Assets are stated at cost net of eligible modvat / cenvat less accumulated depreciation and impairments, if any, Leasehold
land is amortised over the lease period.
Software is capitalized where it is expected to provide future enduring economic benefits and same is shown under Intangible
Assets.
Capital Work-in-Progress is valued at cost and includes equipment in transit and the cost of fixed assets that are not yet ready for
their intended use at the reporting date.
The Scraped/redundant fixed assets are valued at lower of the net book value and estimated net realizable value.
Fixed Assets Awaiting Disposal is classified under Other non-current Assets at their net written down value since these assets
have already been retired from normal continuing operations and is held only for sale/auction. Further, where the management
expects that any part of said asset is likely to be disposed off within one year on the Balance Sheet date, the same
are classified as current assets.
1.4 DEPRECIATION:
Depreciation on fixed assets has been provided on Straight-line method in the manner prescribed in Schedule II of Companies
Act 2013.

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VE |vx E xh E xnE b u Ei |nx E Vx { x +i E xxJi h {

iExE Ei +xxi ={M Vx E +v { SV E Vi V E < |E :M M hbM i |H j B x:
5
bV:
7
BCE] 1.2 5 Px ]:
7
Gx:
15
SE {]:
15
={H +i j B x:
9.19
+i-VxE 5 V E 100 |ii
j:
10
+i +i E { MEi MhE ]:
6
1.5 +i E Ii
|iE ix-{j E il { E{x u +Ei E Vi E C E +i E Ii E E< Ei *
n B E< Ei i i Ii E j Yi Ex E B +i E |{ E +xx M Vi * +i E
={Mi B r G V +vE , +i E |{ i * ={Mi E +Ex, +i E
xi ={M |{ +xxi +, B =E G x + =E ix E BEE{ E]i n E] E E Vi , V ix V { E E E +Ex il +i
r VJ E {Ii Ei * n +i E B |{ E +l +i E Ec =i{nE +M V
r , |{ E =E +xi E , i +xi E =E |{ iE M n Vi * <
P] E IiMi xEx x Vi V x iE {Ii E Vi *
{ E E {Ii Ii x, n E< , E B li =] n Vi , V B Ei |{i i E
+i E + E< {Ii x x , +l x E M< * E, E +i E IiMi xEx E
=]x E V +xi E < fi i iE x i V iE = +i E, { E E<
IiMi xEx x x E +l V +xi xvi i (r ) f x VB*
1.6 i S:
i S +x +S i {k Ex |CEx x E E x E Vi *
Mi G Ei il +x |iI JS E VcE il = O +E E UcE V {
E{x x Exp ] x, 2004 E x 3(1) E +x Exp ] E J |{i E *
i S n i V ix iE +S =x +S {{k J M , +S
{{k E Ex 2001-2002 10% Mi E M *
G{/+xE bh E n E Ex |CE{i x x V E E
M*
1.7 |ii/vE Mi:
1. E {V { =v x E Mi E vi E /x Ji |i E Vi *
2.=v Mi V E +E +i E +vOh, xh =E +i ={M E iJ iE |iI {
+M E {{i E Mi E E { {VEi E B +x =v Mi E E x
Ji |i E Vi *
1.8 ES +x:
E) xv:
xv E Sx +E |vEh u x ]] u E Vi il +{i +n E E
V {x i ES E I ES {x Vx 1995 E v |{i *
120
00

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However, the following class of assets depreciation is determined and charged on the basis of technically assessed
useful life as decided by the Management and approved by the Board of Directors shown hereunder.
Plant and Machinery used for hot slag handling

5 years
Dozer

7 years
Excavators 1.2 to 5 Cum

7 Years
Cranes

15 Years
Magnetic Separators

15 Years
All assets under Plant and Machineryexcept assets mentioned above
Assets with value less than ` 5 Thousand Hundred percent.

estimated

9.19 Years

Solar Plant

10 Years

Computer Software classified as Intangible Asset

6 Years

1.5 IMPAIRMENT OF ASSETS:

At each balance sheet date, the Company assesses whether there is any indication that an asset may be impaired. If any such
indication exists, the recoverable amount of the asset is estimated in order to determine the extent of impairment loss.
Recoverable amount is the higher of an assets net selling price and value in use. In assessing value in use, the estimated future
cash flows expected from the continuing use of the asset and from its disposal are discounted to their present value using a pretax discount rate that reflects the current market assessments of time value of money and the risks specific to the asset. If such
recoverable amount of the asset or the recoverable amount of the cash generating unit to which the asset belongs is less than its
carrying amount, the carrying amount is reduced to its recoverable amount. The reduction is treated as an impairment loss and is
recognized in the statement of profit and loss.
Impairment losses recognized in prior years, if any, are reversed when there is an indication that the recognized impairment
losses for the asset, no longer exist or have decreased. However, the increase in carrying amount of an asset due to reversal of
an impairment loss is recognized to the extent it does not exceed the carrying amount that would have been determined (net of
depreciation) had no impairment loss been recognized for the asset in prior years.
1.6 INVENTORIES:
Inventories other than non-moving inventories are valued at cost or estimated net realizable value whichever is less.
The cost includes purchase cost and other direct Expenses but exclude excise duty on such goods where the company
is eligible to take cenvat credit in accordance with rule 3 (1) of the Cenvat Credit Rules2004.
The inventory items, which have not moved for more than three years, are considered as non-moving inventories.
Nonmoving inventories are valued at cost reduced by ten percent of cost every year from the year 2001-2002.
The scrapped / redundant stores items are valued at cost or estimated net realizable value whichever is lower.

1.7 BORROWING COSTS:

1. Borrowing costs on working capital is charged against the profit/loss for the year in which it is incurred.
2. Borrowing costs directly attributable to the acquisition or construction of fixed assets are capitalized as part of the cost of the
assets up to the date the asset is put to use. Other borrowing costs are charged to the profit and loss account in the year in
which they are incurred.
1.8 EMPLOYEE:
(a) Provident Fund :
Provident Fund is administered by a Trust recognized by Income Tax Authorities and contribution to this Fund is charged to
revenue. Pensioners Benefits are secured through Employees Pension Scheme 1995.

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J) ={nx:
={nx E ni E Vx ={nx Vx E Ih i Vx xM x |nx E
VE +M +E{ ]] E xh E{x E u Vx I =n E M * V E |{i
+n Vx *
M) { +x Vx:
x:H ES/iE E ES E vE =kvE E { +x Vx |n E Vx
E l i { +x Vx E +v { E +i VxEE Ex Ex E ={i
E J VxEi +i/x E +{i E Vi *
P) +x +x:
|ni U]], nPvE {E, xk {Si SEi il ={x +x E B |vx E
E +i iE Ex E +v { x Vi B iE x+/xEx E l B x Ji
E |i E Vi *
1.9 {vE Vx:
{ +v vi |iE n V { +vE x E +/ E |i E +/ E {
x Vi *
1.10 V xi:
+<B+< u V B B 9 n M< l E +v { |ni V E x E M *
v +x{iE +v { |{i +x|V n E +v {, V E E E n E ii J
n M *
1.11 ={E :
={E E |Ei il E Mi, V E +x {h E x x , E nJi
B M {] E n Ei ={E E UcE E{x E i j il x |vx E xi E
E { E i E VJ/Ii E r i x *
1.12 n p :
E-{V il {VMi n E +i B +{Ii E E Mix E +i i J-{j E u niV
E {Gh E il { x n { {ii i p E Vi *
1.13 + { E:
E E +iMi ix + +lMi E * ix +E E +E +vx, 1961 E E
n E +x E-+vE E n Vx E x { xvi E Vi * E E n + E-Exx V E
Ivx +v +vxi E vi +vxi M Exx E +xiMi, E- E xvh E
M*
+lMi + E ix Ivx +v + { {]M +v E zi+ E =iGh E nx E
M + + J + E S E{x zi+ E | E ni * +lMi E E vi E E n
+ E-Exx V E Ivx +v +vxi l ij +vxi E +x {i E M *
+lMi E E Ei, E +i E Sx BE +v E E M + + J + E n { B
BE +vE +v {]x I { x Ei *
+lMi E +i E +M Vx E E I |iE ix {j E iJ E E Vi *
122
00

B B Bx B/ F

S N L

(b) Service Gratuity :

Liability on account of service gratuity is covered under Group Gratuity Life Assurance Scheme of Life Insurance Corporation
of India and is administered through a separate irrevocable trust created by the Company for this purpose. Contribution to the
scheme is charged to revenue.
(c) Family Benefit Scheme:
The provision towards future payments to the disabled employee/ legal heirs of deceased employees under the
Employees Family Benefit Scheme is made based on the actuarial valuation as at the end of the year and charged to the profit
and loss account along with actuarial gains/losses.
(d) Other benefits :
The provision towards accrued leave, long term service award, post retirement medical and settlement benefits, are made
based on the actuarial valuation as at the end of the year and charged to the profit and loss account along with actuarial
gains/losses.

1.9 PRIOR PERIOD ADJUSTMENTS:

Income/expenditure relating to prior period not exceeding rupees ten thousand in each case is treated as income
/expenditure of the current year.
1.10 REVENUE RECOGNITION:
Revenue is recognized on accrual basis in accordance with the provisions of AS-9 issued by ICAI.
Interest income is recognised on a time proportion basis taking into account the amount outstanding and the interest rate
applicable.
1.11 SERVICE CHARGES:
Service charges represent the income earned for processing of scrap and miscellaneous jobs done by the Company at the rates
agreed with / offered to the respective Steel Plants.

1.12 FOREIGN CURRENCY TRANSACTION:

The amount required for import of spare parts and capital items are paid in Indian currency converted at the exchange rate on the
date of negotiation of documents through Letter of Credit for import of goods.
1.13 TAXES ON INCOME:
Tax expense comprises of current and deferred tax. Current income tax is measured at the amount expected to be paid to the tax
authorities in accordance with the Income Tax Act, 1961. The tax rates and tax laws used to compute the amount are those that
are enacted or substantively enacted, at the reporting date.

Deferred income taxes reflect the impact of timing differences between taxable income and accounting income originating during
the current reporting period and reversal of timing differences of earlier reporting periods. Deferred tax is measured based on the
tax rates and the tax laws enacted or substantively enacted at the reporting date.
Deferred tax is recognized on timing differences between taxable and accounting income/expenditure that originates in one
period and are capable of reversal in one or more subsequent period(s).
The Carrying amount of Deferred tax assets are reviewed at each Balance Sheet date.

123
00

B B Bx B/ F

S N L

1.14 Jb |inx:

Jb E {Sx:
E{x E |Sx E =i{n E |Ei il |iE Jb E l |nx E M + E +x +M
Vi |vi , BE E { <E< E |ixvi Ei V z =i{n B +x V E B
|nx Ei * ME Jb E h Ij { +vi , V E{x E |J |Sx Jb Si *
+i: Jb +ih:
E{x xi: +i: Jb G il +ih E B Mhx Ei E n G +l +ih |i V
{ +x {I E EB MB l*
+ Mi E +]x:
+ +]x Mi E + Mi E B |iE Jb E {IE Mnx E +x +]i E *
+x]i n:
]Mi il +x Jb x ]Mi + B n V E { Jb E +]i x
E M *
1.15 |vx ME niB il Mi +i:
nxn, V iE il VE {h E lSi xvi x E V Ei , E |ME E {
x M B Ji-{j E v l il J x E M* |iE ix-{j il E <E
I E Vi il |vx u Ei Mi +v { vi |EB ix |vx |CEx |ii
Ex Vi E Vi *
ME +i k h E +l +xi x * |vx Ei V E{x x E< h E
+i x{]x E vx Ji vE +l SxiE Ek V ni E E B x |CEx
E x V Ei il +ii E P]x+ E {h{, VE B E ix {j il E
ni E x{] Ex +lE +x E E +Ei M* |iE ix-{j il { <E I
E Vi il ix =k |CEx |ii Ex Vi EB Vi *
1.16 x:
BE +vE E +v E B E M x E Vx x E, +v E x E {
MEi E M il = Mi { n M * +v E x { xEx G E
H +/ E { x Vi * ix x, Mi + +M-+M x E +v { =Si
xvi E { +E Vi *
1.17 nMv @h/+O E |vx:
n + +O V < i E n/+O, |vx E nMv x Vi E J |vx E *
B ni/|vx V |vx E + +E x ,=x nxn/|vx E +{Ji E Vi
*
1.18 |i +:|i + E Mhx, vi +v E r x <C] vE E E <C]
E i +i J Vi EE {Ei E Vi *
ixEi + |i E Mhx E |Vx E B Ex i, vi +v E r x <C] vE
E + E <C] E i +i J E i ixEi <C] E | E
Vi E *
124
00

B B Bx B/ F

S N L

1.14 SEGMENT REPORTING:

Identification of segments:
The Company's operating businesses are organised and managed separately according to the nature of products and services
provided, with each segment representing a strategic business unit that offers different products and serves different markets.
The analysis of geographical segments is based on the areas in which major operating divisions of the Company operate.

Inter segment Transfers:

The Company generally accounts for intersegment sales and transfers as if the sales or transfers were to third parties at current
market prices.

Allocation of common costs:

Common allocable costs are allocated to each segment according to the relative contribution of each segment to the total
common costs.
Unallocated items:
The Corporate and Other segment includes general corporate income and expense items which are not allocated to any
business segment.
1.15 PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS:
Liabilities which are material and whose future outcome cannot be reasonably ascertained are treated as contingent and not
provided for and disclosed by way of notes to the accounts. These are reviewed at each Balance Sheet date and are adjusted to
reflect the current management estimate considering final disposal of respective cases on merit basis as assessed by the
management.
Contingent assets are not recognized or disclosed in the financial statements.
Provisions are recognised, where the Company has any legal or constructive obligation or where reliable estimate can be made
for the amount of the obligation and as a result of past events, for which it is probable that an outflow of economic benefits will be
required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect
the current best estimates.
1.16 INVESTMENTS:
Investments held / intended to be held for a period exceeding one year are classified as long term investments and the same are
stated at cost. Gains / losses on long term investments are considered as income/expenditure at the time of sale only. Current
investments are stated at lower of cost and fair value determined on an individual investment basis.

1.17 PROVISIONS FOR DOUBTFUL DEBTS/ADVANCES:

Provision is made against Claims and Advances wherever such claim / advance is considered doubtful in the opinion of
management. Writing back of Liabilities / Provisions are made wherever such liability / provision considered no longer required in
the opinion of management.
1.18 EARNINGS PER SHARE:
Basic earnings per share is computed by dividing net profit or loss for the period attributable to equity shareholders by the
weighted average number of equity shares outstanding for the period.
For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders
and the weighted average number of shares outstanding during the period are adjusted for the effects of all dilutive potential
equity shares.

00
125

B B Bx B/ F

S N L

 G{ xM ]b
Ji+ E {j
Ji+
{j 2: +E{j
{V
{j 2: + {V

|vEi
` 1000/-|iE E
xMi, li il |nk
` 1000/-|iE E

31 S, 2015 E li

` J
31 S, 2014 E li

E `

20,000

200.00

20,000

200.00

20,000

200.00

20,000

200.00

20,000
200.00
20,000 200.00
M
E{x VxE Ij E ={G il {hi: B.B.]..]b E i *
E{x E E { =Ji + E E BE M VE +Ei .1000/-* E |iE vE
il |i + BE i E En *
E{x i { E PhB il Mix Ei * E j VxE Ij E ={G E B
M E =t M E n-xn { +vi * xnE b u |ii +M E + `E
+v E +xnx E +vx *
E{x E {{x E li , E vE i +vx E E ih {Si E{x E S +l E
|{i Ex E En M* VE ix B E< +vx E Vn x * ih + PE u vi
E J E +x{i M*
31 S, 2015 E {i { E{x x +i E `1500/- |i + B |ii +i E
209.52 { |i + *
E E xVx 410.41 J { V E xMi E 68.51 J { Vc + *
` J
E + E J E x

31 S, 2015 E li
31 S, 2014 E li
J
E `
J
E `
E + E +
20,000
200.00
20,000
200.00
E nx xMi +
E nx { B MB +
E< +x Miv (E{ xn] E)
E {i { E +
20,000
200.00
20,000
200.00

xj E{x u vi + E

v E |Ei
B.B.]..]b
xj E{x

31 S, 2015 E li
20,000

126
00

B B Bx B/ F

S N L

31 S, 2014 E li
200.00

FERRO SCRAP NIGAM LIMITED

NOTES ON ACCOUNTS
Note 2 : SHARE CAPITAL

` in lacs

Particulars

As at 31 March 2015
Number
Amount `

As at 31 March 2014
Number
Amount `

Authorised
Equity Shares of `1000 each

20,000

200.00

20,000

200.00

Issued, Subscribed & Paid Up

Equity Shares of `1000 each

20,000

200.00

20,000

200.00

20,000

200.00

20,000

200.00

Total

The company is a public sector undertaking and a wholly owned subsidiary of MSTC Ltd.
The company has only one class of shares referred to as equity shares having a par value of `1000/-. Each holder of equity shares is
entitled for dividend and one vote per share.
The company declares and pays dividend in Indian Rupees. The quantum of dividend is based on DPE guideline as applicable all
CPSE. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General
Meeting.
In the event of liquidation of the company, the holders of equity shares will be entitled to receive any of the remaining asset of the
company, after distribution of all prefrential amounts. However, no such preferential amounts exist currently. The distribution will be
in proportion to the number of equity shares held by the shareholders.
During the year ended March 31,2015, company has paid Interim dividend amounting to `1,500/- per equity share and Final Dividend
proposed amounting to ` 209.52 per equity share.
Total dividend appropriation amounted to ` 410.41 lakhs which includes corporate dividend tax of ` 68.51 lakhs.

Reconciliation of the number of Shares Outstanding

` in lacs

Particulars

Equity Shares
As at 31 March 2015
Number
Amount `

Shares outstanding at the beginning of the year 20,000

Shares Issued during the year
Shares bought back during the year
Any other movement (please specify)
Shares outstanding at the end of the year
20,000

200.00
200.00

As at 31 March 2014
Number
Amount `
20,000
20,000

200.00
200.00

Details of Shares Held by Holding Company

Particulars

MSTC Limited

Nature of
Relationship
Holding Co

127
00

B B Bx B/ F

S N L

As at 31 March 2015 As at 31 March 2014

20,000

20,000

 G{ xM ]b
{j 3: +Ii B +v

` J

|i

E. +Ii {V
+E
Vc : |i +ih
P] : |i +{Ji
+i
J. x +Ii
+ E
Vc: +v |i +ih
P]: |i +{Ji
P] : xi +i Vx x ({j x.43)
+i
M. +v
+E
Vc : |i E B r /(r x)
P] : +i
P] : |ii
P] : ih E
P] : x +Ii +ih
+i
M

Mi

31/03/2015

31/03/2014

37.36

37.36

37.36

37.36

14,388.25
1,299.00

13,743.25
645.00

9.04

15,678.21

14,388.25

0.78
1,709.52
300.00
41.90
68.52
1,299.00
0.88

0.58
842.28
168.45
28.63
645.00
0.78

15,716.45

14,426.39

128
00

B B Bx B/ F

S N L

FERRO SCRAP NIGAM LIMITED

Note 3 : RESERVES & SURPLUS

` in lacs
Particulars

Current Year
31.03.2015

Previous Year
31.03.2014

a. Capital Reserves
Opening Balance
Add: Current Year Transfer
Less: Written Back in Current Year

37.36
-

37.36
-

Closing Balance

37.36

37.36

14,388.25

13,743.25

1,299.00

645.00

b. General Reserve
Opening balance
Add: Current Year Transfer from Surplus
Less: Written Back in Current Year
Less: Adjustment relating to Fixed Assets (Refer Note no. 43)
Closing Balance

C. Surplus
Opening balance
Add: Net Profit/(Net Loss) For the current year
Less: Interim Dividend
Less: Final Dividend
Less: Dividend Distribution Tax
Less: Transfer to General Reserve

9.04
15,678.21

14,388.25

0.78
1,709.52
300.00
41.90
68.52
1,299.00

0.58
842.28
168.45
28.63
645.00

0.88

0.78

15,716.45

14,426.39

Closing Balance
Total

129
00

B B Bx B/ F

S N L

 G{ xM ]b
{j 4: +x nPEE ni

+x
ES { +x Vx E ii VB
ES vi +x ni

J
Mi
`

|i
31/03/2015

31/03/2014

346.27
0.13
346.40

369.62
0.14
369.76

` J

{j 5: nPEE |vx

ES +x E B |vx
+E xEnEh (+{)
xk {Si SEi +x
nP {E(+{)
ES { +x Vx (+{)
xk (+{)

|i

Mi

31/03/2015

31/03/2014

1,951.63
1,882.63
4.03
275.06
38.69

1,555.63
902.83
4.51
308.01
36.45

246.56

235.55

4,398.60

3,042.98

+x
r n+ E r Gi E n n
M
{j 6: +{vE =v

` J

|ii
Ei {V @h
E
<bx E, < E { +vE
(=H @h E E E { V E{x E v
V+ { xvE u |iii E M * v V E
M
{{Ci +v ix {j il E BE E *

|i

Mi

31/03/2015

31/03/2014

2,023.20

1,054.00

2,023.20

1,054.00

130
00

B B Bx B/ F

S N L

FERRO SCRAP NIGAM LIMITED

Note 4: OTHER LONG TERM LIABILITIES

Particulars

` in lacs
Current Year
31.03.2015

Previous Year
31.03.2014

346.27
0.13

369.62
0.14

346.40

369.76

Others
Deposits under EFBS Scheme
Other Employee Related Liabilities
Total

Note 5: LONG TERM PROVISIONS

Particulars

` in lacs
Current Year
31.03.2015

Previous Year
31.03.2014

Leave Encashment (unfunded)

1,951.63

1,555.63

Post Retirement Medical Benefit

1,882.63

902.83

Long Service Award (unfunded)

4.03

4.51

275.06

308.01

38.69

36.45

246.56

235.55

Total 4,398.60

3,042.98

Provision for employee benefits

Employee Family Benefit Scheme (unfunded)

Superannuation (unfunded)

Others
Claim payable to vendor against escalation claim

Note 6 : SHORT TERM BORROWINGS

Particulars

` in lacs
Current Year
31.03.2015

Previous Year
31.03.2014

Overdraft limit with Indian Bank, Bhilai

2,023.20
(The above loans are secured by pledge on fixed deposits of the
company held with the banker. The maturity period of fixed
deposit is less than one year as on the balance sheet date)
Total 2,023.20

1,054.00

Secured
Working Capital Loan
From banks

131
00

B B Bx B/ F

S N L

1,054.00

 G{ xM ]b
{j 7: {E nxn

` J

I P v =v E Eh
+x E Eh

|i

Mi

31/03/2015

31/03/2014

0.14
2,344.76
2,344.90

3.41
1,549.41
1,552.82
` J

{j 8: +x |i +i

+x nxn
ES vi ni
vxE ni
+x ni

|i

Mi

31/03/2015

31/03/2014

490.70
440.42
1,029.40
1,960.52

472.87
321.32
892.47
1,686.66
`

{j 9: +{vE |vx

|i

(E) ES +x E B |vx
ix {xIh E n
+iH vx Vx Vx E n
xk {Si +x Vx E n
+E xEnEh (+{)
xk {Si SEi +x (+{)
nP {E +{
ES { +x Vx (+{)
xk (+{)
(J) +x
|ii
ih E
+x |vx

31/03/2014

2,644.58
57.93

1,187.58
53.37

124.74
49.64
1.75
75.88
3.53

53.52
29.56
0.68
78.39
2.10

41.90
8.53
181.68
3,190.16

168.46
28.63
154.78
1,757.07

132

B B Bx B/ F

Mi

31/03/2015

S N L

FERRO SCRAP NIGAM LIMITED

Note 7: TRADE PAYABLES

`` in lacs

Particulars

Current Year

Previous Year

31.03.2015

31.03.2014

0 .14
2,344.76

3.41
1,549.41

2,344.90

1,552.82

Due to MSME's
Due to Others
Total

` in lacs

Note 8 : OTHER CURRENT LIABILITIES

Particulars

Current Year
31.03.2015

Previous Year
31.03.2014

Other payables
Employee Related Liabilities

490.70

472.87

Statutory Dues

440.42

321.32

Other Liabilities

1,029.40

892.47

1,960.52

1,686.66

Total

` In lacs

Note 9: SHORT TERM PROVISIONS

Particulars

Current Year
31.03.2015

Previous Year
31.03.2014

2,644.58

1,187.58

57.93

53.37

Towards Post Retirement Benefit Scheme

Leave Encashment (unfunded)

124.74

53.52

Post Retirement Medical Benefit (unfunded)

49.64

29.56

1.75

0.68

75.88

78.39

3.53

2.10

41.90

168.46

8.53

28.63

181.68

154.78

3,190.16

1,757.07

(a) Provision for employee benefits

Towards Wage Revision
Towards ARGS

Long Service Award (unfunded)

Employee Family Benefit Scheme (unfunded)
Superannuation (unfunded)
(b) Others
Proposed Dividend
Dividend Distribution Tax
Other Provision
Total

133
00

B B Bx B/ F

S N L

{vx

134
00

B B Bx B/ F

S N L

FERRO SCRAP NIGAM LIMITED

135
00

B B Bx B/ F

S N L

 G{ xM ]b

` J

{j 11: +lMi E
|i

+lMi E ni:
+lMi E +i:
nMv +O E B |vx
nMv n E B |vx
nMv @h E B |vx
r n E r Gi E n n E B |vx
+E xEnEh E B |vx
E E B V E B |vx
] x +vx E ii V E B |vx
M

Mi

31/03/2015

31/03/2014

66.91

62.77

2.12
8.44
11.46
67.63
555.64
16.50
9.57
671.36
604.45

2.12
8.44

63.89
396.83
9.45
8.93
489.66
426.89

` J

{j 12: nPEE @h B +O
|i

31/03/2015

E. |ii VB
+Ii, ={H x MB
E M il {I E { |ii VB
J. +O E
+E B ji { E E]i (r |vx)
M

B B Bx B/ F

Mi

31/03/2014

88.42

92.71

585.89

937.48

674.31

1,030.19

136
00
S N L

FERRO SCRAP NIGAM LIMITED

` in lacs

Note 11: DEFERRED TAXES

Particulars

Current Year
31.03.2015

Deferred Tax Liabilities:

Deferred Tax Assets:
Provision for doubtful advances
Provision for doubtful claim
Provision for doubtful debts
Provision for claim payable to vendor against escalation claim
Provision for leave encashment
Provision for Interest on Service Tax
Provision for Interest under Motor Vehicle Act

Total

Previous Year
31.03.2014

66.91

62.77

2.12
8.44
11.46
67.63
555.64
16.50
9.57

2.12
8.44
63.89
396.83
9.45
8.93

671.36

489.66

604.45

426.89

` in lacs

Note 12 : LONG TERM LOANS & ADVANCES

Particulars

Current Year
31.03.2015

a. Security Deposits
Unsecured, considered good
Security deposit with government departments and other parties

b. Advance Tax
Income Tax & TDS (net of provision)
Total:

88.42

92.71

585.89

937.48

674.31

1,030.19

137
00

B B Bx B/ F

Previous Year
31.03.2014

S N L

 G{ xM ]b

{j 13: +x M |i +i

` J

Mi

|i

M Si i S E O
(3 +vE +v E B vi)
P] : M Si i-S E E B
|vx

31/03/2015

265.01

31/03/2014
343.19

131.95

152.41
133.06

+|Si i S E O
P] : |Si {Vx+ E B i S
{V {Vx+ E B i S
x{]x E |i l +i
M n il +x +O
+x E +v
nPEE E VB *
( x +vE E iE {{Ci E l)
|ni V Exi nPEE E V+ { |{ x

23.42
15.34

8.08

190.78
23.42
15.34

56.29
17.19

8.08
83.47
15.62
9.50

13.16

0.19

214.62

320.80

*={H V+ .13.16 J iE E |ii +vEh E r <bx E E { M

{j 14: i S

` J

|i

31/03/2015

bh il {V
(Mi { Ei +l r |{ , V E )
J +V i bh E {V
Vc : {Mx
Vc : Vx i i r E
ph B Jx O n
G{ (x{]x E B i)
M

269.05
48.84
12.70
330.59
11.39
3.88

319.18
1.41
12.70
333.29
9.35
3.87

345.86

346.51

Vx E B i i S E E r |vx {j .9 +x |vx *

138
00

B B Bx B/ F

Mi

31/03/2014

S N L

FERRO SCRAP NIGAM LIMITED

Note 13 : OTHER NON CURRENT ASSETS

` in lacs

Particulars

Current Year
31.03.2015

Stock of non-moving inventory

(held for period more than 3 years)

265.01

Less: Provision for Diminition in the

Value of Non-Moving Inventory

Previous Year
31.03.2014
343.19

131.95

152.41
133.06

Stock of Obsolete Inventory

23.42

Less: Provision for Obsolete Inventory

15.34

Inventory for Capital Projects

190.78
23.42

8.08

15.34

8.08

83.47

Fixed Assets Awaiting Disposal

56.29

15.62

Claim Recoverable & Other Advances

17.19

9.50

Other Bank Balances:

Long Term Bank Deposits*
(with Original Maturity of more than twelve months)
Interest Accrrued But Not Due on Long
Term Bank Deposits

13.16

0.19

214.62

Total:

320.80

* The above deposits includes Rs. Nil (PY Rs. 13.16 lacs) pledged with Indian banks against Bank Guarantee and overdraft
facilities.
` in lacs

NOTE 14 : INVENTORIES
Particulars

Current Year
31.03.2015

Previous Year
31.03.2014

Stores and spares

(Valued at Cost or Net Realizable value whichever is lower)
Stores & Spare parts including loose tools
Add: Goods in transit
Add: Net shortage pending adjustments*

Printing & stationery items

Scrap (pending for disposal)
Total:

269.05

319.18

48.84

1.41

12.70
330.59

12.70
333.29

11.39
3.88

9.35
3.87

345.86

346.51

* Provision against inventory shortage pending adjustment is included in 'Other Provision' in Note no.9

139
00

B B Bx B/ F

S N L

 G{ xM ]b
{j 15: |{ {

|i

31/03/2015
U: E +v E B E |{ {,
V Mix E B |{
+Ii, ={H x M
6,297.88
Mix E B n E il U: +vE +v E B
E |{ { V Mix E B |{
+Ii, ={H x M
72.28
+Ii, nMv x M
33.72
P] :nMv @h E B |vx
33.72
72.28

Mi

31/03/2014

1,297.54

92.17

92.17

1,389.71
M 6,370.16
- { E{x Oh E B E{x E OE E E Ex Ei * |vx E B Vi E
+Ex xn] E E Ex, =tM E VJ vh i v EE { +vi , V OE x
+lE EE E Si Ei V li Ex E B OE E Ii E |i E Ei * E{x
xiEE { M {i E E Ei * E{x x { ix-{j il E VE il
ix E B E nxn n E B ={vi Ei *
` J
{j 16: xEn B E +v
|i
Mi

31/03/2015
31/03/2014
xEn B i xEn
Ec
3.96
3.17
vxn
E E { V E
605.99
50.15
E E { S Ji V E
ix x E E {{Ci E l V
449.00
609.95
502.32
M
+x E +v
ix x +vE Exi E E
{{Ci E l V #
10,723.16
9,550.00
9,550.00
M 10,723.16
10,052.32
M 11,333.11
# =H V+ E |ii B +vEh v E r v E E { M .3715.16 J
(Mi ` xE) *
` J
{j 17: +{vE @h B +O
|i
Mi

31/03/2015
31/03/2014
E.+x
ES E @h B +O
xEn +O B +x
118.53
97.93
1.|nE E +O
+Ii ={H x M
106.06
83.79
181.72
M 224.59
140
00

B B Bx B/ F

S N L

FERRO SCRAP NIGAM LIMITED

NOTE 15 : TRADE RECEIVABLES

` in lacs

Particulars

Current Year
31.03.2015

Trade receivables outstanding for a period less than six

months from the date they are due for payment
Unsecured, considered good
Trade receivables outstanding for a period exceeding six
months from the date they are due for payment
Unsecured, considered good
Unsecured, considered doubtful
Less: Provision for doubtful debts
Total:

Previous Year
31.03.2014

6,297.88

1,297.54

72.28
33.72
33.72
72.28

92.17
92.17

6,370.16

1,389.71

Periodically the company evaluates all customer dues to the company for collectability. The need for provision is assessed based
on various factors including collectibility of specific dues, risk perception of the industry in which the customer operates, general
economic factors which could affect the customers ability to settle. The company pursues the recovery of the dues, in part or full.
The company normally provides for debtors dues outstanding for three years or longer from the invoice date,as at the
Balance Sheet date.

Note 16 : CASH & BANK BALANCES

` in lacs

Particulars

Current Year
31.03.2015

Cash and cash equivalents

Cash in Hand
Cheque in Hand
Balances with Banks
Balances with banks in Current Accounts
Deposits with Original Maturity of less than three months

Previous Year
31.03.2014

3.96
-

3.17
-

605.99
-

50.15
449.00

609.95

502.32

10,723.16

9,550.00

Total: 10,723.16

9,550.00

Total: 11,333.11

10,052.32

Total:
Other Bank Balances
Deposits with Original Maturity of more than three months
but less than twelve months #

# The above deposits includes `.3715.16 lakhs (PY ` Nil ) pledged with various banks against Bank Guarantee & Overdraft
facility.
Note 17 : SHORT TERM LOANS & ADVANCES

` in lacs

Particulars

Current Year
31.03.2015

Previous Year
31.03.2014

a. Others
Loans & Advances To Employees
Advance & other recoverable in cash

118.53

97.93

1. Advance to Suppliers
Unsecured, considered good

106.06

83.79

224.59

181.72

Total:

141
00

B B Bx B/ F

S N L

 G{ xM ]b

{j 18: +x Vn +i*

x{]x E |i l +i
+|{{E V
M n +x +O
+|{{E V
+Ii ={H x M
+Ii nMv x M
P]: nMv x M
v V { |ni V
E Vx
<{i j il +x {I E { |ii V

|i

Mi

31/03/2015
217.04
3,338.89

31/03/2014
199.75
3,557.67

80.87

60.58

33.72
47.15
410.14
235.76
293.12
4,542.10

|i

31/03/2014
22,100.95
313.48

26,410.45

22,414.43

|i

+x
{xvi Ii- B +x
ES E xMi O |{i
|vx + V x +{Ji
v +

31/03/2014

970.96
0.87

977.74
0.59

19.12
0.03
142.68
34.27
1,167.93

11.11
0.33
362.49
20.98
1,373.24

142
00

B B Bx B/ F

Mi

31/03/2015

V +
+i v V { V
+x V

S N L

` J

` J

Mi

31/03/2015
26,096.98
313.47

{j 20: +x +

60.58
812.13
244.06
31.63
4,905.82

{j 19: |Sx V

G{ |Gh il +x ]E E |
Mn |vx +

` J

FERRO SCRAP NIGAM LIMITED

Note 18 : OTHER CURRENT ASSETS

` in lacs

Particulars

Current Year
31.03.2015

Fixed Assets Awaiting Disposal

Unbilled revenue

217.04
3,338.89

199.75
3,557.67

80.87
33.72

60.58
-

47.15
410.14
235.76
293.12

60.58
812.13
244.06
31.63

4,542.10

4,905.82

Claim Recoverable & Other Advance

Unbilled revenue
Unsecured, Considered Good
Unsecured, Considered Doubtful
Less: Considered Doubtful

Interest Accrued on Term Deposit

Service Tax Set Off
Security deposit with steel plants & Other parties
Total:

Previous Year
31.03.2014

` in lacs

Note 19 : REVENUE FROM OPERATIONS

Particulars

Current Year
31.03.2015

Service charges from processing of Scrap

& other miscellaneous jobs
Income from Custodian Services for Warehouse Management

26,096.98
313.47

Total:

26,410.45

Previous Year
31.03.2014
22,100.95
313.48
22,414.43

Note 20 : OTHER INCOME

` in lacs

Particulars

Current Year
31.03.2015

Previous Year
31.03.2014

Interest Income
Interest on FDR
Other Interest

970.96
0.87

977.74
0.59

Others
Liquidated damages and other recoveries
Receipt from materials issued to employees
Provision no longer required written back
Miscellaneous Income

19.12
0.03
142.68
34.27

11.11
0.33
362.49
20.98

1,167.93

1,373.24

Total:

143
00

B B Bx B/ F

S N L

 G{ xM ]b
{j 21: ={Mi O E Mi
|E

M ]
13.65
+CVx il B]x
0.29
xE
38.68
bV il Mx
35.78
hbh il E-{V
657.44
M
745.84
{j 22: ES +x

Jn

` J

|i

Mi

31/03/2015

31/03/2014

48.37
39.14
200.04
1,903.49
811.66
3,002.70

50.86
52.85
206.76
1,984.24
882.69
3,177.40

={M

46.93
39.22
185.03
1,902.16
617.58
2,790.92

12.21
0.37
23.67
34.45
463.36
534.06

={M

` J

E. ix B |ix
x
={
ix B Vn
J.+nx
(i) xv il +x xv
(ii) ={nx xv +nx
M. ES Eh JS

|i

Mi

31/03/2015

31/03/2014

87.72
6,029.62

0.02
81.10
5,874.48

602.99
500.00
3,565.51
10,785.84

590.19
400.00
1,358.05
8,303.84
` J

{j 23: k Mi

V JS
E |

{j 24: +x

V V B +CVx
`En E v + E Mi
={E B +x E

n B E
k i j
I B
+x @h ]] Ji
i B +xIh
x E i
+x E i
]E JS
J {IE E {E
vxE J {Ih E
JS
E J {Ih E
|hx E

|i

Mi

31/03/2015

31/03/2014

121.89
1.90
123.79

121.27
1.36
122.63
` J

|i

Mi

31/03/2015

31/03/2014

361.70
1,993.69
6,477.40
37.76
99.84
107.76
362.33

294.90
1,943.14
5,803.56
35.60
22.44
110.66
351.08
220.16

273.52
54.60

1.00
1.25
0.20
0.05
144
00

B B Bx B/ F

S N L

328.12
374.18

2.50
10,145.28

247.92
52.79
1.00
1.25
0.20
0.05

300.71
511. 03

2.50
9,595.78

FERRO SCRAP NIGAM LIMITED

Note 21 : COST OF MATERIAL CONSUMED

Opening Stock

` in lacs
Purchase

Closing Stock

Particulars

Current Year
31.03.2015
Consumption

Previous Year
31.03.2014
Consumption

Lancing Tubes
Oxygen & Acetylene
Lubricants
Diesel & Gasolene
Stores & Spare Parts

13.65
0.29
38.68
35.78
657.44

46.93
39.22
185.03
1,902.16
617.58

12.21
0.37
23.67
34.45
463.36

48.37
39.14
200.04
1,903.49
811.66

50.86
52.85
206.76
1,984.24
882.69

Total:

745.84

2,790.92

534.06

3,002.70

3,177.40

Current Year
31.03.2015

Previous Year
31.03.2014

87.72
6,029.62

0.02
81.10
5,874.48

602.99
500.00
3,565.51

590.19
400.00
1,358.05

10,785.84

8,303.84

Note 22 : EMPLOYEE BENEFIT EXPENSES

` in lacs

Particulars
(a) Salaries and incentives
Bonus
Labour Refreshment
Salary & Wages
(b) Contributions to (i) Provident and other fund
(ii) Gratuity fund contributions
(c) Staff welfare expenses
Total:
Note 23 : FINANCE COSTS

` in lacs

Particulars
Interest expense
Bank Charges
Total:

Current Year
31.03.2015
121.89
1.90

Previous Year
31.03.2014
121.27
1.36

123.79

122.63
` in lacs

Note 24 : OTHER EXPENSES

Particulars
Water,Power & Oxygen
Cost of Services Through Contractor
Equipment & Other Rent
Insurance
Rates & Taxes
Travelling including allowances
Security Services
Bad Debts Written off
Repair And Maintenance
Repairs to Machinery
Repairs to Others
Miscellaneous Expenses
Auditors Remuneration
Statutory Audit Fees
Out of Pocket Expenses
Tax Audit Fees
Certification Fees

Current Year
31.03.2015

Previous Year
31.03.2014

361.70
1,993.69
6,477.40
37.76
99.84
107.76
362.33
-

294.90
1,943.14
5,803.56
35.60
22.44
110.66
351.08
220.16

273.52
54.60

328.12

247.92
52.79

374.18
1.00
1.25
0.20
0 .05
Total

2 .50
10,145.28

145
00

B B Bx B/ F

S N L

300.71
511.03

1.00
1.25
0.20
0.05

2 .50
9,595.78

 G{ xM ]b

{j 25: +vh il +x |Ei E n E

|i

1.

31/03/2015

+vh n
E.
E.nMv @h E B |vx
(3 +vE E B E @h i)
J. r n E r Gi E n n E B |vx
M. +x {I E n n E B |vx
P. l +i E G/x{]x { r x
J. +
E. |vx + V x
J. |H B +x{M E {V E G

33.72

M (E-J)

Mi

31/03/2014

12.89
60.99
(28.13)

11.00
54.80
15.43

2.81
61.33
15.33

2.43
30.04
48.76

{j 26: {vE n E
+/JS
i S

|i

31/03/2015

Mi

31/03/2014

(1.80)

|iJi +i
|

(1.80)

{j 27: |i + ={Vx

(7.74)
(7.74)
J
Mi
`

|i

vE E B ={v B x Ji E +x
r /(x)
|i + ={Vx +Ex E B E i +i J
1.|i + E ={Vx E B
2.|i + ixEi ={Vx E B
|i + ={Vx
E
ixEi
146
00

B B Bx B/ F

S N L

31/03/2015

31/03/2014

1,709.52

842.28

20 000.00
20 000.00

20,000.00
20,000.00

8,547.59
8,547.59

4211.39
4211.39

FERRO SCRAP NIGAM LIMITED

Note 25 : DETAILS OF ITEMS OF EXCEPTIONAL AND EXTRAORDINARY NATURE

Particulars

` in lacs

Current Year
31.03.2015

Previous Year
31.03.2014

33.72

12.89
60.99
(28.13)

11.00
54.80
15.43

2.81
61.33
15.33

2.43
30.04
48.76

1. Exceptional Items:
A. Expenditure
a. Provision for Doubtful Debt
(For debt outstanding for more than 3 years)
b. Provision for claim payable to vendor against escalation claim
c. Provision for claim payable to other parties
d. Net Loss on Sale / Disposal of Fixed Assets

B. Income
a. Provision No Longer Required
b. Sale of used & unserviceable spares
Total (A-B)

Note 26 : DETAILS OF PRIOR PERIOD ITEMS

Particulars

Current Year
31.03.2015

` in lacs
Previous Year
31.03.2014

Income / (Expenses)
Depreciation
Inventory

(1.80)

Asset Write Back

Service Charge

(1.80)

Total

( 7.74)
(7.74)

` in lacs

Note 27 : EARNINGS PER SHARE

Particulars

Current Year
31.03.2015

Previous Year
31.03.2014

Net Profit/(Loss) as per Profit & Loss Account available for Equity
Shareholders

1,709.52

842.28

1. For Basic Earnings per Share

20,000.00

20,000.00

2. For Diluted Earnings per Share

20,000.00

20,000.00

Weighted Average number of equity shares for Earnings per Share

computation

Earnings per Share

Basic

8,547.59

4,211.39

Diluted

8,547.59

4,211.39

147
00

B B Bx B/ F

S N L

 G{ xM ]b
`

{j 28: i ni B |iriB

|i
G..

31/03/2015
1. i ni
(E) E{x E r n @h E { E x
62.51
1. +vxhi E ii i{ ES +x E Ii{i E B +xx
2. xv, +M E { n E +x +b <VxM E
u b i E E B
28.31
={M:90.82
(J) E
1. <B]B], EEi E I i Exp =i{n, VV{ E +vIE E M
63.57
E +x b <E< EM hbM +{ E
2. E <E< { {E + { E, V E Exp =i{n B
E, S E +H x +n n , +H S il <B]B], EEi E
1,699.25
I i *
3. x{ <E< { {E + { E, V E +iH +H, Exp
=i{n B E, { il E +H, Exp =i{n B
211.96
E,+x x +n n , +H (+{), EEi E I i *
4. < <E< EM hbM + { E, V E Exp =i{n B
E, { x +n n , <B]B], n E I i *
259.48
5. b <E< EM hbM + { E, V E +H, Exp
=i{n,x x <, 2004 S, 2007 E +v E B M E , +H
374.25
Exp =i{n, x E I i *
6. nM{ <{i j il B <{i j G: +|, 2003 S,2008 il
+C],2003 x, 2008 E +v E B { {E il EM
2,362.50
hbM + { E, <B]B], EEi E I i *
7.+|, 2008 <, 2009 il Vx, 2009 i, 2009 E +v E B
G:{ {E il EM hbM + { E, <B]B],
EEi il +H, EEi E I i *
690.48
8. b <E< EM hbM + { E, V E +|, 2009 S,
2010 E +v E B +H, x x M E <B]B], EEi E
163.09
I i *
9. nM{ <E< { {E { E, V E +C],2009 S, 2010
E +v E B +H, Exp =i{n, { M E , <B]B],
178.30
EEi E I i *
10.b <E< EM hbM + i +H, Exp =i{n, x u
+|, 2007 S, 2009 E +v E B M E M< , +H, Exp =i{n,
226.06
x E I i *
={ M 6,228.94
148
00

B B Bx B/ F

S N L

Mi
31/03/2014

60.85
25.57
86.42

50.93

1,600.27

195.04

242.84

372.45

2,219.14

557.56

96.09

103.16

209.63
5,647.11

FERRO SCRAP NIGAM LIMITED

` in lacs
Note 28 : CONTINGENT LIABILITIES & COMMITMENTS
Sl
No.

Particulars

Current Year
31.03.2015

Previous Year
31.03.2014

(i) Contingent Liabilities

A. Claims against the company not acknowledged as debt
1 For compensation to ex-employees and others under adjudication estimated at

62.51

60.85

2 For repair job at Dolvi Unit claimed by M/s Audumber Engineering Works as per
Civil Suit with Civil Judge, Alibag

28.31

25.57

90.82

86.42

Sub Total:
B. Service Tax
1 Service tax on Cargo Handling Services at Duburi unit as demanded by Suptd.
of Central Excise, Jajpur.(net of payment made) pending before CESTAT, Kolkata.

63.57

50.93

1,699.25

1,600.27

3 Service tax on Business Auxiliary Services at Burnpur unit as ordered by

Additional Commissioner, Central Excise & Customs, Bolpur and Assistant
Commissioner, Central Excise and Custom, Asansol pending before
Commissioner (Appeal), Kolkata

211.96

195.04

4 Service tax on Cargo Handling Services at Bhilai unit as ordered by

Commissioner of Central Excise and Customs, Raipur, pending before CESTAT,
Delhi.

259.48

242.84

5 Service tax on Cargo Handling Services at Duburi unit Demanded by

Commissioner, Central Excise, Bhubaneswar for the period from May 2004 to
March 2007, pending before Commissioner, Central Excise, Bhubaneswar

374.25

372.45

2,362.50

2,219.14

7 Service Tax on Business Auxillary Service and Cargo Handling Services at

Durgapur Steel Plant for the period April2008 to May2009 and June2009 to
September2009 respectively, pending before CESTAT, Kolkata and
Commissioner, Kolkata.

690.48

557.56

8 Service Tax on Cargo Handling Services at Duburi unit as demanded by

Commissioner, Bhubaneswar for the period April2009 to March2010 is pending
before CESTAT, Kolkata.

163.09

96.09

9 Service Tax on Business Auxillary Service at Durgapur Unit as demanded by

Commissioner, Central Excise, Bolpur for the period October 2009 to March
2010, is pending before CESTAT, Kolkata.

178.30

103.16

10 Service tax on Cargo Handling Services at Duburi unit Demanded by

Commissioner, Central Excise, Bhubaneswar for the period from April 2007 to
March 2009, pending before Commissioner, Central Excise, Bhubaneswar

226.06

209.63

6,228.94

5 ,647.11

2 Service Tax on Business Auxiliary Services at Bokaro unit as ordered by

Commissioner Central Excise and Customs, Ranchi, pending before
Commissioner, Ranchi and CESTAT, Kolkata

6 Service tax on Business Auxilliary Service and Cargo Handling Services at

Durgapur Steel Plant and Alloy Steel Plant for the period from April 2003 to
March 2008 and October 2003 to November 2008 respectively, pending before
CESTAT; Kolkata.

Sub Total:

149
00

B B Bx B/ F

S N L

 G{ xM ]b
{j 28: i ni B |iri
G..

J
Mi
`

|i

(M). G E il +x E
1. =E <E< G E il | E E B +b G
E M E M E { E E xvEh, E]E E I
i *
2. +vSi Ij {n, =E (<{i xM) u b{,
bV +n V- -={E { SM E B +b =SS
x E I i *
={ M
(P). E E |i
={ M
E M
(2) |iri
(E). {VMi J { x{ni E Vx i `E E +xxi
E il VE B l x E M< (Mix E r)
{j 29: n p JS
G..

1. +{ B {V (B+ +vi )
2. j JS E {|I

31/03/2015

31/03/2014

46.50

46.50

3.24
49.74
58.88
58.88
6,428.38

3.24
49.74
48.82
48.82
5,832.09

89.80

270.02

|i
31/03/2015

` J
Mi
31/03/2014
7.36
2.28
9.64

{j 30: vi {I
vi {I E S, V xjh Vn il vi {I, VE l il v xB MB :`

G.. vi {I E x vi {I v E |Gi
1.
2.

E |Ei

B.B.]..]b
xjh E{x +vI- |v xnE E E M JS E +E
V ]]S
|v xnE
{E
(9 , 2015 E | Oh E)

|i

Mi

31/03/2015 31/03/2014
7.34
x
3.06
-

{j 31
Mi E +Ec E V, +E , Vi il {xEi E M iE |i E +Ec E +x{
E*
{j 32
ix +i, @h B +O =k B M il E E-E n V iE { E x
{` G Exi i B J+ BE iE +xl x E M* Mi {, |{ {, @h B
+O E +v vx il {] Ex E +vx *
{j 33
ix-{j il B x Ji =E l ={r {`i ]{{h i Ei iE E{x +vx,1956 E ii
+{Ii Sx E l-l E {i E E{x E li E h il Ivx E B E{x E {h
E + x{I o]Eh E J *
150
00

B B Bx B/ F

S N L

FERRO SCRAP NIGAM LIMITED

Note 28 : CONTINGENT LIABILITIES & COMMITMENTS

Sl
No.

Particulars

Current Year
31.03.2015

` in lacs
Previous Year
31.03.2014

46.50

46.50

C. Sales Tax and Other Taxes

1 For Sales Tax and Entry Tax at Rourkela unit as
demanded by Orissa Sales Tax Department, pending
before Sales Tax Tribunal, Cuttack.
2 For Octroi on heavy earthmoving equipment like
Dumpers, Dozers etc. by Notified Area Council,
Rourkela (Steel Township), pending before Orissa
High Court
Sub Total:

3.24

3.24

49.74

49.74

D. Outstanding Bank Guarantees

58.88

48.82

Sub Total:

58.88

48.82

Grand Total:

6,428.38

5,832.09

89.80

270.02

(ii) Commitments
A. Estimated amount of contracts remaining to be
executed on capital account and not provided for
(net of advance)

` in lacs

Note 29: EXPENDITURE IN FOREIGN CURRENCY

Sl No.

Particulars

Current Year
31.03.2015

Previous Year
31.03.2014

1 Components & Spares (Value on FOB basis)

2 Towards Travel Expenses

7.36
2.28
9.64

Total:

Note 30: RELATED PARTY TRANSACTIONS

List of related parties where control exists and related parties with whom transaction has taken place and
Relationships:
Sl.
No.

Name of Related Party

Nature of Related
Party Relationship
Holding Company

Nature of
Transaction
Sharing of
Expense for CMD

Current Year
31.03.2015
7.34

` in lacs

Previous Year
31.03.2014
-

1
MSTC Ltd
2
Shri Rajib Bhattacharya
Managing Director
Remuneration
3.06
(Taken over charge on 9th February 2015)
Note 31
Figures of Previous Years have been split up and regrouped wherever necessary so as to correspond to current year's figures.

Note 32
The current assets, loans and advances are good and recoverable and are approximately of the values, if realized in the ordinary
course of business unless and to the extent stated other wise in the accounts. Balances of trade payables, trade receivables, loans
and advances are subject to reconciliation and confirmation.

Note 33
Balance Sheet and Profit & Loss Account read together with the notes thereon, are drawn up so as to disclose the information
required under The Companies Act, 1956 as well as give a true and fair view of the statement of affairs of the Company as at the end
of the year and results of the Company for the year under review.

151
00

B B Bx B/ F

S N L

 G{ xM ]b
34.E)

{ E +H, Exp =i{n x +|,08 i,08 E +v E B < <E< G{ E E B

|Gh E E i EM hbM + { E E {|I `152.05 J E Eh i+ x] V
E * E{x u =H Eh i+ x] E V { |ii E n M il HMi
x< E V B + +n |{i E Vx *
J) { E +H, Exp +E x +H 2009 S, 2010 E +v E B < <E< G{ E E
B |Gh E E E B EM hbM + { E E {|I `181.68 J E Eh i+
x] V E * Eh i+ x] E V +H, Exp +E, { E |ii E n M il
VE HMi x< i *
M) { E +H, Exp =i{n x +H 2008 i 2009 E +v E B < <E< G{ E E
B |Gh E E E B EM hbM + { E E {|I `245.72 J E Eh i+
x] V E * E{x u =H Eh i+ x] E V { |ii E n M il
HMi x< E V B + +n |{i E Vx *
P) S E +H, Exp +E x 2008 S, 2010 E +v E B E <E< G{ E E
B |Gh E E E B { {E + { E E {|I `146.96 J E Eh i+ x]
V E * E{x u =H Eh i+ x] E V { |ii E n M VE HMi x<
i *
b.) { E +iH +H, Exp +E x +H 2008 i 2009 E +v E B nM{ <E< G{
E E B |Gh E E E B { {E + { E E {|I `22.20 J E Eh
i+ x] V E * E{x u =H Eh i+ x] E V { |ii E n M VE
HMi x< i *
S.) +iH +H, Exp =i{n + E Mc +H x 2009-10, 2010-11 B 2012-13 E B b
<E< G{ E E B |Gh E E E { {E + { E E {|I `44.40 J E
Eh i+ x] V E * E{x u =H Eh i+ x] E V { |ii E n M
VE HMi x< i *
35. E{x +{x l +i E +Oi E { E{x E xi B Ec =iVE <E< (V) E {
{xEx Ei * +iB, E{x (Ec =iVE <E< x ) x +{x l +i E +Oi E
xEn | E ix ix E il E Ihi E {Ii x Ei *
36. B B B < E n E (V E {j 7 |E]i ) E B {Sxi lx E +x{ * E{x x
xi : B B B < <E< E xi Mix Ei B V +l +iv Mix E B {I
u E< n x E M *
37. u <E< E +xi + { xE x M * (Mi E + `6.01 J l)
38. M-E{E ES E ix {xIh E +xv 31 n, 2011 E {i M * 1 Vx, 2012 E |
x +xv E xh i , ix {xIh E {|I E B +xxi `969.51 J E |vx
E M *
39. <BxB J{]]h E l nvEE +xv nxE 31 +C] 2014 E {i M< * {i +xv
x 2014 S 2015 E +v E B n nxE 31.10.2014 E |Si n E +x x M< *
40. |vx u M`i +iE iExE I i E u +|Si i S n E Sxi E M * i
<E< E B 2013-14 |inx |ii E * i x E{x E E i S E + E `23.42 J
E +|Si i S Sxi E * <E +M i x <x +|Si i S E r `8.08 J r |{
|CEi E *
152
00

B B Bx B/ F

S N L

FERRO SCRAP NIGAM LIMITED

34.

a) The Commissioner, Central Excise of Raipur has issued show cause notice for ` 152.05 lakhs towards service tax on
Cargo Handling Services for the jobs of recovery and processing of scrap at Bhilai unit for the period April 08 to
September08. The reply of above show cause notice is already submitted by the company, personal hearing in the
matter is being conducted however order is yet to be received.

b) The Commissioner, Central Excise of Raipur has issued show cause notice of ` 181.68 lakhs towards service tax on
Cargo Handling Services for the job of recovery and processing of scrap at Bhilai unit for the period Oct2009 to
March2010. The reply to the show cause notice has been submitted to Commissioner, Central Excise, Raipur, however
personal hearing is pending.

c) The Commissioner, Central Excise of Raipur has issued show cause notice of ` 245.72 lakhs towards service tax on
Cargo Handling Services for the job of recovery and processing of scrap at Bhilai unit for the period Oct2008 to
September2009. The reply of above show cause notice is already submitted by the company, personal hearing in the
matter is being conducted however order is yet to be received.

d) The Commissioner, Central Excise of Ranchi has issued show cause notice of ` 146.96 lakhs towards service tax on
Business Auxiliary Services for the job of recovery and processing of scrap at Bokaro unit for the period February2008
to March2010. The reply of above show cause notice is already submitted by the company, however personal hearing is
pending.

e) The Addl. Commissioner, Central Excise of Bolpur has issued show cause notice of ` 22.20 lakhs towards service tax
on Business Auxiliary Services for the job of recovery and processing of scrap at Durgapur unit for the period
October2008 to September2009. The reply of above show cause notice is already submitted by the company, however
personal hearing is pending.

f) The Addl. Commissioner , Central Excise & Service Tax, Raigad Commissionerate issued show cause notice
of ` 44.40 lakhs towards service tax on Business Support Service for the job of recovery and processing of scrap at
Dolvi unit for the year 2009-10, 2010-11 and 2012-13. The reply of the above show cause notice already submitted by the
company, however personal hearing is pending.

35.

The company reviews the carrying amount of its fixed assets treating the entire company as a Cash Generating Unit (CGU).
Hence, the company (being a CGU) has compared the carrying amount of its fixed assets with present value of future cash
flows and it does not show any impairment.

36.

The amount due to MSME (as disclosed in Note 7) is to the extent such undertakings have been identified. The company
has normally made payment to MSME units in due time and there are no claim from the parties for interest or overdue
payment.

37.

Provisional income at Haridwar Unit has been considered as ` Nil (Previous Year ` 6.01 Lakhs)

38.

The Agreement for Wage revision of Non executive employees expired on 31st December 2011.Pending finalization of the
fresh agreement w.e.f. 1st January 2012, a provision of ` 969.51 lakhs for the year towards wage revision has been
estimated and provided.

39.

Long term agreement with RINL, Vizag has been expired on 31st October 2014. The service charges for the period
Nov2014 to March2015 has been considered with the rate prevailing as on 31.10.2014 in the expired agreement.

40.

Obsolete inventory items are identified by internal technical review committee duly constituted by the management. The
committee submitted the report in the FY 2013-14 for all the units. The committed has identified obsolete inventory
amounting to `.23.42 lacs out of the total inventory of the company. Further committee has estimated net realizable value
of `8.08 lacs against these obsolete inventories.

153
00

B B Bx B/ F

S N L

 G{ xM ]b
41. E{x i z <{i j, + b B-M, -u G{ E B r E E

M V E{x E |J { G-E{ * G{ E B r E E +, E{x x Mn |vx E

B |i{ni E * E, J xE 17 E +xSUn 27 (B) E +x, V Jb |inx, { Jb
|it Jb E { Sxi E VBM n OE E G <E V il +x Jb E l x-nx
E V E 10 |ii +vE * Mn |vx E r |{i E | +Vi V E n
|ii E , +iB {x |it Jb M`i x Ei *
<E +M ME Jb E v , JEx xE {E{i |lE {nb E x V VE xS
n V :
* +lE + VxiE li E xi
* z ME Ij Sx E S v
* Sx E xE]i
* Ij Sx E l VJ
* x xjh x
* +ixi p VJ
SE E{x <E< B |i{nx E V E BE +lE + VxiE i E +vx B <B BE
{Sx VJ E =VM E , V-x xjh x, +ixi p VJ, Sx E
xE]i +n* inx z ME Ij Sx E S v E{x |vx E B |ME x *
42. - +< B B pk E l nxE 04 x, 2014 E 3 E B BE nvEE +xv E ii E{x
u BE x< <E< E +i E M< VE {Sx Miv, Vx 2015 | <*
43. E{x +vx 2013 l{x E +xh E{x u, /@hH E v J xi |E]i EU
+i E UcE, b-2 nB MB xn] +xxi ={Mi + E |M E M * inx,
vi/ ={Mi + +{vi x E i/@hH E Vi * i +S +i, VE
+ii nxE 1 +| 2014 E {i SE , E `9.04 J { E x Ji E Ec
Vi E M *
44. bW, BCE], Gx B Mx]E {] E +{vx i , VxE ={Mi + E E{x u
vi E M l, E k 2013-14 BB-5 E +x +i E vi + E lx { +i E
ExM E il E | Ex E M, Vx { BB-6 E +x k 2015-16 =x +i E
E Mhx E l <E | E J {iE+ {v + `92.60 J B {v `94.40 J
E { M*
45. 01.10.2014 31.03.2015 E +v E B M-E{E M E ES E |n 9 |ii BV { k
xil `310.12 J B 01.10.2014 31.03.2015 E +v E B E{E M E 20 |ii BV `138.82
J E |CEi E |nx E M<*
154
00

FERRO SCRAP NIGAM LIMITED

41.

Company is engaged in the business of Scrap Recovery and Allied Jobs in various Steel Plants in India, RWF Bengaluru
and BHEL Haridwar, which is the principal business activity of the company. Beside scrap recovery and allied jobs,
company has rendered services of warehouse management. However, as per Para 27 (a) of AS 17 i.e. Segmental
Reporting, a business segment should be identified as a reportable segment if its revenue from sales to external
customers and from transactions with other segments is 10 percent or more of the total revenue, external and internal, of all
segments. Total service charges received against warehouse management is less than ten percent of the revenue earned;
hence the former does not constitute a reportable segment.

Further as regards to geographical segment, the primary criteria as envisaged in the accounting standard are being
considered of which details are as follows:
Similarity of economic and political conditions
Relationship between operations in different geographical areas
Proximity of operations
Special risks associated with operations in particular area
Exchange control regulations
Underlying currency risks.
Since the company is rendering services to units that are subject to same economical and political conditions and are
therefore exposed to same operational risks viz. exchange control regulations, underlying currency risks, proximity of
operations etc. Accordingly relationship between operations in different geographical areas does not differ from each other
and therefore is not relevant for the company or the management.
42.

The company has started a new business for scrap recovery with SAIL, VISL at Bhadravati under long term agreement
made on 04th November 2014 valid for 3 years and commenced its operational activities from January2015.

43.

Pursuant to the enactment of Companies Act 2013, the company has applied the estimated useful lives as specified in
Schedule II, except in respect of certain assets as disclosed in Accounting Policy on Depreciation / Amortization.
Accordingly the unamortized carrying value is being depreciated / amortized over the revised / remaining useful lives. The
depreciated value of Fixed Assets whose lives have expired as at 1st April 2014 have been adjusted in the opening balance
of Profit and Loss Account amounting to ` 9.04 lakhs.

44.

The unamortized depreciable amount of Dozer, Excavator, Crane and Magnetic Separator which company revised its
useful life, was evaluated in FY 2013-14 from date of commissioning of the assets instead of revised remaining life of assets
as per AS-6. In the FY 2014-15, the depreciation calculated for those assets as per AS-6 and the impact considered in the
books of account as Prior Period Inome of ` 92.60 lakhs and Prior Period Expenditure of ` 94.40 Lakhs.

45.

The financial implication of 9% MGB for Non-Executive employees for the period 01.10.2014 to 31.03.2015 amounting to
` 310.12 lakhs and 20% MGB for Executive for the period 01.10.2014 to 31.03.2015 amounting to `138.82 lakhs has
been estimated and provided.

155
00

B B Bx B/ F

S N L

 G{ xM ]b
46. ES +x :
46.1 {i +x Vx E I{i Sjh :

E) +E xEnEh - {j ES E Vx { n E 300 nx (Vi +Vi +E +vixE

+E) iE i E VBM, il +vixE +E E i 300 nx E Mhx E B E =t
M E n-xn E +x {xii x E VBM* Si +Vi +E E xEnEh BE
Ehb BE 30 nx iE Ei *
J) xi {Si SEi +x-bC <xx { E ii E SEi xi
ES E B ={v*
M) xi {Si x{] +x-xi x ES E =xE u Pi M xM x i n*
v) nPEE {E-i E { xxi 25 E |i{ni Ex B xi x { n*
b) ES { +x Vx-xvi V E BV +M EM ES/nMi ES E
Exx E nMi/EM ES E xi E il iE E Mix*
S) xv-E{x u xv x E ix il M< k E 12 |ii +nx*
U) ={nx-{j ES, V xxi 5 il 30 iE E +v E B xi |i{ni Ei , E
E |iE {h E B 15 nx E ix E n xi { n * ={nx E Mhx E |iE {h
E B ES u +i +i BE E ix E n +vE +vE 30 E B E Vi *
ES E n ={nx E +vEi `10 J *
47.

{i +x ni E {|I ES +x { JEx xE (B B) 15(2005 vi) E ii

l{Ii |E]Eh xx :-

156
00

B B Bx B/ F

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FERRO SCRAP NIGAM LIMITED

46.

Employee Benefits

46.1 Brief Description of Defined Benefit Scheme:

47.

(a)

Leave Encashment - Payable on separation to eligible employees, shall be limited to 300 days (Earned leave and
Half-Pay leave combined), and HPL shall not be commuted as per DPE guidelines for calculation of 300 days
limit. Encashment of accumulated earned leave is also allowed upto 30 days once in a calendar year.

(b)

Post Retirement Medical benefit - Available to retired employees at any hospital under the Mediclaim Insurance
Policy

(c)

Post retirement settlement benefit Payable to retiring employees for settlement at their declared home town.

(d)

Long Term Service Award-Payable in kind for rendering minimum 25 years of service and also on
Superannuation.

(e)

Employees Family Benefit Scheme Monthly payment to disabled separated employees/legal heirs of deceased
employees in lieu of prescribed deposit till the date of superannuation of deceased employees.

(f)

Provident Fund: 12% of Basic pay and Dearness allowance contributed to the Provident Fund Trust by the
company.

(g)

Gratuity: Payable on separation at the rate of 15 days pay for each completed year of service to eligible
employees who render continuous service for a minimum period of 5 years and upto 30 years. The Gratuity is
calculated at the rate of one months wages last drawn by the employee for every completed year of service in
excess of 30 years. The maximum amount of Gratuity payable to employee is `10 lakhs.

Disclosures as required under Accounting Standard (AS) 15 (revised 2005) on Employee Benefits in respect of Defined
benefit obligations are:

157
00

B B Bx B/ F

S N L

 G{ xM ]b
E) |I{i +x ni E |i E x
(` J )
G..

+E
XEnEh

xi {Si
SEi +x

+|, 2014 E li 1609.15

Vi i ni
E ix
ii. Mi
210.34
iii. V Mi
136.45
iv.
388.56
v. +ii Mi
0.00
vi. i |nk
(268.13)
vii. +Vx Mi/(@h)
0.00
viii. 31,S, 2015 E li
Vi i E
ix (i)+(ii)+(iii)+
i.

(iv)+(v)+(vi)+(vii)

2076.37

nPEE
{E

xi {Si
x{] +x

ES {
+x Vx

932.39

38.55

5.19

386.40

2971.68

65.09
84.59
886.11
0.00

1.69
3.22
6.15
0.00

0.25
0.46
0.35
0.00

0.00
32.23
8.19
0.00

277.37
256.95
1289.36
0.00

(35.91)

(7.39)

(0.47)

(75.88)

(387.78)

0.00

0.00

0.00

0.00

0.00

1932.27

42.22

5.78

350.94

4407.58

J) 31 S, 2015 E {i E B B x Ji E h Ei :G..
i.
ii .
iii.
iv.
v.

Mi
V Mi

+ii Mi
|ii |i {{k
Vx {
vi. (]{ 22 E ii) ES
+x { +{i

+E
xEnEh

xi {Si
SEi +x

(` J )

xi {Si
x{] +x

nPEE
{E

ES {
+x Vx

210.34
136.45
388.56
0.00

65.09
84.59
886.11
0.00

1.69
3.22
6.15
0.00

0.25
0.46
0.35
0.00

0.00
32.23
8.19
0.00

0.00

0.00

0.00

0.00

0.00

735.35

1035.79

11.06

1.06

40.42

158
00

B B Bx B/ F

S N L

FERRO SCRAP NIGAM LIMITED

a) Reconciliation of present value of projected benefit obligations:Sl

No.

i.

ii.
iii.
iv.
v.
vi.
vii.
viii.

Particulars

Present value of
projected benefit
obligation as at 1st
April 2014
Service cost
Interest cost
Actuarial (Gain)/
Losses
Past Service cost
Benefit paid
Acquisition Cost/
(credit)
Present value of
projected benefit
obligation as on
31st March 2015.
(i)+(ii)+(iii)+(iv)(v)+(vi)+(vii)

Leave
Encashment

( ` in lakhs)

Post
retirement
Medical
Benefit

Post
retirement
Settlement
Benefit

Long Term
Service
Award

Employees
Family
Benefit
Scheme

Total

1609.15

932.39

38.55

5.19

386.40

2971.68

210.34
136.45
388.56

65.09
84.59
886.11

1.69
3.22
6.15

0.25
0.46
0.35

0.00
32.23
8.19

277.37
256.95
1289.36

0.00
(268.13)
0.00

0.00
(35.91)
0.00

0.00
(7.39)
0.00

0.00
(0.47)
0.00

0.00
(75.88)
0.00

0.00
(387.78)
0.00

2076.37

1932.27

42.22

5.78

350.94

4407.58

b) Expenses recognized in the statement of Profit and Loss Account for the year ended 31st March 2015
(` in lakhs)
Sl
No.

i.
ii.
iii.
iv.
v.
vi.

Particulars

Service cost
Interest cost
Actuarial (Gain)/ Loss
Past service cost
Expected return on plan asset
Amount charged to Employee
Benefit Expenses(Note - 22)

Leave
Post
Encashment retirement
Medical
Benefit

Post
retirement
Settlement
Benefit

Long Term
Service
Award

Employees
Family
Benefit
Scheme

210.34
136.45
388.56
0.00
0.00

65.09
84.59
886.11
0.00
0.00

1.69
3.22
6.15
0.00
0.00

0.25
0.46
0.35
0.00
0.00

0.00
32.23
8.19
0.00
0.00

735.35

1035.79

11.06

1.06

40.42

159
00

B B Bx B/ F

S N L

 G{ xM ]b
M) 31/03/2015 E 5.00% E n SEi i E +Mi E {] Ei B { xk |{i E E
bC xi E ii SEi i |nx E M *
v) EE u Si xi
G..

i.
ii .

U] n
ix B Vn r n

iii.

i n il |ih

31 S, 2015 E li
7.80%

M-E{E-10.00% { 6.00%+x

E{E -10.00% { 5.00% +M
i Vx i n (2006-08) ({Ei) +ii:

iv.

E ix r E |CEx pi, `i {nzi il +x vi {+ E E EE

Ex x M *

48.

k 2014-15 E{x u B B ] ]b E <-x i `4.22 J E E Mix

E M (Mi `6.99 J) il E{x u B B ] ]b E Mn |vx E +Ih
E B `310.13 J |{i E M (Mi ` 290.78 J)

49.

k 2014-15 E nx E{x u ` 300 J E +i Pi E Mix E M V

+vE E |nk <C] {V E 150 % * `59.98 J E ih E E {
V E M<*

i-+O B {
xn J{
{VEh EE 000203C
+O B {
xn J{
Zn: B E +bx
ni GE: 401080
{

i B |v xnE- G{ xM ]b E +
B.{.
E{x S

B.E.SGi
={-|vE(k J)

..
xnE

V ]]S
|v xnE

160
00

B B Bx B/ F

S N L

B.E.j{`
+vI

FERRO SCRAP NIGAM LIMITED

c) The medical inflation assumed @5.00% as on 31.03.2015 as confirmed by actuary since the post retirement medical
benefit scheme is covered by Mediclaim Policy.
d) Assumption considered by Actuary
Sl.
No.

Description

As at 31st March 2015

I.

Discount Rate

7.80%

ii.

Rate of Escalation in Salaries & Wages

Non-Executive 10.00% for first year & 6.00%

thereafter
Executives 10.00% for first year & 5.00%
thereafter

iii.

Mortality and withdrawal

Indian Assured Lives Mortality (2006-08) (modified)

ultimate

iv.

The estimate of future salary increase is considered in actuarial valuation taking account of inflation,
seniority promotion and other relevant factors.

48.

The company has paid service charges for e-auction to MSTC Ltd in the FY 2014-15 ` 4.22 lakhs (PY `6.99 lakhs) and
the company has received `310.13 lakhs (PY `290.78 lakhs) towards custodian services for the warehouse
management of MSTC Ltd.

49.

During the FY 2014-15, the company has declared and paid Interim Dividend of `300.00 lakhs i.e. 150.00% of paid-up
equity share capital to the shareholders. The Dividend Distribution Tax amounting to ` 59.98 lakhs has been deposited.

For Agrawal & Pansari

Chartered Accountants
FRN No. 000203C

For and on behalf of the Board of Directors of

Ferro Scrap Nigam Limited

Agrawal & Pansari

Chartered Accountants
Partner : CA V.K. Adwani
Membership No.: 401080
A.P. Sharma
Company Secretary

Place :Raipur
Date :03/06/2015

B.B.Singh
Director

S.K.Chakraborty
Deputy General Manager (F&A)

S.K. Tripathi
Chairman

161
00

B B Bx B/ F

S N L

Rajib Bhattacharya
Managing Director