BHUSHAN STEEL LIMITED

The Future of Steel

Annual Report 2015-16

Contents
Corporate overview
Corporate Information 01

Management Reports
Director Reports  02
Corporate Governance R eport 08
Management Discussion and Analysis 14

Financial Statements
Auditors Report on Standalone Accounts 29
Standalone Financial Statement 36
Auditors Report on Consolidated Accounts 65
Consolidated Financial Statements 68
 Corporate overview Management reports financial statements

CORPORATE INFORMATION

Mr. Brij Bhushan Singal State Bank of India

Non-Executive Chairman Punjab National Bank
Mr. Neeraj Singal
Vice-Chairman & Managing Director
Mr. Nittin Johari
Whole-time Director (Finance) & Chief Financial
Officer
Mr. Rahul Sen Gupta

LEAD BANKERS
Whole-time Director (Technical)
Mr. P. K. Aggarwal
Whole-time Director (Commercial)
Mr. B.B. Tandon
BOARD OF DIRECTORS

Director
Mr. M.V. Suryanarayana
Director
Mr. Ashwani Kumar
Director P.O. Shibapur, Meramandali
Mr. Rakesh Singhal Distt.: Dhenkanal - 759 121
Director (Odisha) INDIA
Mr. Pradeep Patni
Director Site IV, Sahibabad Industrial Area,
Distt. Ghaziabad - 201 010
Mr. Sahil Goyal
Director (U.P.) INDIA
WORKS

Mr. Pankaj Sharma Village: Nifan, Savroli,

Director
Kharpada Road,
Mr. Kapil Vaish Taluka-Khalapur, Near Khopoli,
Director Distt.: Raigad - 410 203
Mr. A. K. Deb (Maharashtra) INDIA
Nominee Director of SBI
Dr. Rajesh Yaduvanshi
Nominee Director of PNB
Mr. Vipin Anand
Nominee Director of LIC

COMPANY SECRETARY
Mr. O.P. Davra

AUDITORS
Mehra Goel & Co.
Chartered Accountants
Mehrotra & Mehrotra
Chartered Accountants
REGISTERED AND CORPORATE OFFICE REGISTRAR & SHARE TRANSFER AGENTS
Bhushan Centre, Ground Floor, Hyatt Regency M/S RCMC SHARE REGISTRY PVT. LTD.
Complex, Bhikaji Cama Place B-25/1, First Floor, Okhla Industrial Area Phase II,
New Delhi-110066 New Delhi - 110020.
Phone No.: 011- 71194000 Phone : 011 26387320, 26387321, 26387323
Fax No.: 011- 46518611 Fax : 011 - 26387322
e-mail : [email protected] e-mail : [email protected]
Website : www.bhushansteel.com
CIN : L74899DL1983PLC014942

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BHUSHAN STEEL LIMITED Annual Report 2015-16

BOARDS REPORT
Dear Shareholders, Downstream Facilities, Boilers, Coke Dry Quenching, HSM Extension
and Reheating Furnace. These facilities are expected to be completed
Your directors are pleased to present the 33rd Annual Report and the
in FY 2017.
Audited Statement of Accounts for the financial year ended March 31, 2016.
The banks have sanctioned ` 905 Crores for completion of said
FINANCIAL RESULTS balance facilities.
(` Lacs)
FINANCE:
Particulars Year ended The Working Capital facilities available to the company for its
March 31, March 31, Sahibabad, Khopoli and Orissa Plants amounts to ` 12280 crore
2016 2015 (Fund Based limit of ` 5651 crores and Non Fund Based limit of
Gross Revenue 1312406.77 1173501.72 ` 6629 crores).The enhanced working capital for the year 2015-16
has not been sanctioned by the banks.
Profit /Loss Before Depreciation and Tax (247410.20) (31655.01)
Depreciation &Amortisation 109974.44 93839.85 ISSUE AND REDEMPTION OF PREFERENCE SHARES
Profit /Loss Before Tax (357384.64) (125494.86) The Company has made an allotment of 2,00,000 12% Redeemable
Cumulative Preference Shares of ` 100 each in November 2015 and
Provision for Deferred Tax (73447.93) (112.06)
redeemed 7,12,587 10% Redeemable Cumulative Preference shares of
Profit /Loss After Tax (283936.71) (125382.80) `100 each as per the terms of the Issue out of the proceeds of the fresh
Profit /Loss brought forward from (124270.06) 1112.74 issue of shares.
Previous Year DIRECTORS AND KEY MANAGERIAL PERSONNEL
Profits/Loss available for appropriation (408206.77) (124270.06)
Changes in the composition of the Board of Directors and other
DIVIDEND Key Managerial Personnel
In view of the loss incurred during the year the Board does not consider it Smt. Promila Bhardwaj,as an Additional Independent Director and Mr. Vipin
expedient to recommend any dividend. Anand as Nominee Director of Life Insurance Corporation of India (LIC)
were inducted in the Board in its meeting held on 30th May 2016.
STATE OF COMPANYS AFFAIRS
Smt. Sunita Sharma and Smt. Promila Bhardwaj were ceased to be
GROSS REVENUE: directors of the Company. The Board placed on record its appreciation of
During the year your Company has achieved the Gross sales of `13124 the valuable contribution and guidance provided by them.
Crores in comparison of previous years level of ` 11735 Crores. Currently the Board of Directors of the Company consists of 16 directors,
Enormous increase in finance cost, continuous slump in the steel out of which Eight are Independent directors, Three are Nominee directors,
industry and delay in stabilizing the expansion of Phase-3 of the Four are Executive directors and One is Non-executive Chairman.
Company has impacted the business and are the primary reasons for Due to the loss incurred during the year, the Company has applied to
the losses incurred by the Company during the FY 2015-16. the Central Government for the approval of managerial remuneration
and Central Government has granted approval for payment of Managerial
The Company has been facing severe stress in its debt servicing from
Remuneration.
past few years. This is due to several reasons and circumstances
faced by the company which led to adding on stress on cash flows Clarification has been sought from the Central Government vide letter
and consequently on debt servicing. The problems got aggravated dated 05.05.2016 and 13.06.2016 for payment of leave encashment ,
in last two financial years when there has been sharp surge in provident fund and car perquisites to managerial personnel. Reply from
imports of steel in India which led to substantial fall in domestic steel the Central Government is still awaited.
prices impacting the margins and cash flows significantly. Further,
Joint Lenders Forum(JLF) has already been formed under the RBI Independent Directors Declarations
Guidelines and JLF meetings are being conducted regularly to arrive All Independent directors have given declarations that they meet the
at a long term viable solution for the company. The cash losses criteria of independence as laid down under section 149 of the Companies
incurred by the company in last two years are as under: Act, 2013 which has been relied on by the Company and placed at the
Figures ` In Crore Board meeting.
Particulars Loss After Tax Cash Loss Retirement by rotation
FY 2015-16 (2839.37) (2474.10) In terms of Section 152 of the Companies Act, 2013 Mr. Brij Bhushan Singal
FY 2014-15 (1253.83) (316.55) and Mr. P. K. Aggarwal, Directors would retire by rotation at the forthcoming
AGM and is eligible for re-appointment. Mr. Brij Bhushan Singal and Mr. P.
ExportS: K. Aggarwal, Directors of the Company have offered themselves for the
The company has achieved the Export Turnover of ` 1198.33 crores, reappointment.
in comparison of previous years level of ` 1536 crores. The export Further as per the requirement of Companies Act, 2013 and Listing
turnover during the FY 2015-16 is lower due to submerged demand in Agreement, the following policies of the Company are attached herewith
international market. There has been volatility and sluggish demand marked as Annexure A and Annexure B.
in the international market due to oversupply of steel by the China
a) Policy for selection of Directors and determining Directors
and Russia.
independence; and
With a firm commitment and through sustained efforts, your company
b) Remuneration Policy for Directors, Key Managerial Personnel and
continues to maintain good rapport with Global Customers. Our
other employees.
quality products and timely delivery have found wide acceptance in
the highly competitive international market. CORPORATE SOCIAL RESPONSIBILITY (CSR)
Our products are being exported across the globe. Pursuant to the provision of Section 135 of the Companies Act 2013 read
with CSR Rules the Company has constituted a CSR Committee consisting
COMPLETION OF BALANCE CAPEX FACILITIES:
of three Directors, of which one is Independent Director. The composition,
Your company is under implementation of completion of balance terms of reference etc. of the CSR Committee are laid out in the Corporate
capex facilities like Coal Washery & Raw Material Handling System, Governance Report which forms part of this Annual Report.

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 Corporate overview Management reports financial statements

The CSR policy of the Company has been uploaded on the Companys There were no materially significant Related Party Transactions made by the
website www.bhushansteel.com. Company during the year that would have required Shareholder approval
In pursuance of the provisions of the Companies Act, 2013 and CSR Policy as per provision of Companies Act 2013 read with applicable rules and
of the Company it is required to spend two percent of the average net Regulation 23 of SEBI (Listing Obligations and Disclosures Requirements)
profits of the Company for the three immediately preceding financial years. Regulations, 2015.
The average net profits for three financial years were ` 54.38 Cr. and All related Party Transactions are placed before the Audit Committee for
the Company was required to spent 2% i.e. ` 1.09 Cr. on CSR activities. approval. Prior Omnibus approval of the Audit Committee is obtained for the
However the Company has incurred losses amounting to ` 2838.99 Cr. transactions which are of for seen and repetitive nature. The transactions
during the financial year 2015-16. And it is facing uphill task in meeting its entered into pursuant to the omnibus approval so granted along with a
financial Obligations. Hence the Company is unable to spend any funds on
statement giving details of all related party transactions is placed before
CSR Activities for the time being. The Company will incur the sum on CSR
the Audit Committee from time to time..
activities as soon as financial position of the Company improved.
RESPONSIBILITY STATEMENT SIGNIFICANT AND MATERIAL ORDERS PASSED BY THE
REGULATORS OR COURTS OR TRIBUNAL IMPACTING THE GOING
The Responsibility Statement of the Corporate Social Responsibility (CSR) CONCERN STATUS OF THE COMPANY
Committee of the Board of Directors of the Company, is reproduced below:
There are no significant and/or material orders passed by the Regulators
The implementation and monitoring of Corporate Social Responsibility or Courts or Tribunals impacting the going concern status of the Company.
(CSR) Policy, is in compliance with CSR objectives and policy of the
Company. RISK MANAGEMENT
CORPORATE GOVERNANCE Bhushan Steel follows well-established and detailed risk assessment and
minimisation procedures, which are periodically reviewed by the Board.
The Company is committed to maintain the highest standards of corporate
The Company has in place a business risk management framework
governance and adhere to the corporate governance requirements set
for identifying risks and opportunities that may have a bearing on the
out by SEBI. The Company has also implemented several best corporate
governance practices as prevalent globally. The report on Corporate organizations objectives, assessing them in terms of likelihood and
Governance as stipulated under the Listing Agreement forms an integral magnitude of impact and determining a response strategy.
part of this Report and presented in a separate section as Annexure C. The Senior Management assists the Board in its oversight of the Companys
The requisite certificate from the Auditors of the Company confirming management of key risks, including strategic and operational risks, as well
compliances with the conditions of corporate governance is part of the as the guidelines, policies and processes for monitoring and mitigating such
report on Corporate Governance. risks under the aegis of the overall business risk management framework.
MANAGEMENTS DISCUSSION AND ANALYSIS REPORT INTERNAL FINANCIAL CONTROLS
Managements Discussion and Analysis Report for the year under review,
The Board has laid down Internal Financial Controls within the meaning of
as stipulated under regulation 34(2) of SEBI Listing Obligations and
the explanation to Section 134 (5) (e) of the Companies Act, 2013. During
Disclosure Requirements)Regulations, 2015, is presented in a separate
section as Annexure D forming part of the Report. the year, such controls were tested and no reportable material weakness in
the design or operation were observed.
CONSOLIDATED FINANCIAL STATEMENT
Based on the framework of internal financial controls and compliance
In accordance with the Companies Act, 2013 (the Act) and Accounting systems established and maintained by the Company, work performed by
Standard (AS) - 21 on Consolidated Financial Statements read with AS - the Internal Auditors and the reviews performed by Management and the
23 on Accounting for Investments in Associates and AS - 27 on Financial relevant Board Committees, including the Audit Committee, the Board is of
Reporting of Interests in Joint Ventures, the audited consolidated financial the opinion that the Companys internal financial controls were adequate
statement is provided in the Report. and effective during the financial year 2015-16.
SUBSIDIARIES, JOINT VENTURES AND ASSOCIATE COMPANIES DIRECTORS RESPONSIBILITY STATEMENT
The Consolidated Financial Statements presented by the Company include As required by Section 134(3) (c) of the Companies Act, your directors
financial results of all its subsidiaries, joint ventures and associates. The state that:
Audited Financial Statements of the Subsidiary Companies have been
reviewed by the Audit Committee and the Board. a) in the preparation of the annual accounts for the year ended March
31, 2016, the applicable accounting standards read with requirements
A policy for determining material subsidiaries is displayed on the website of set out under Schedule III to the Act, have been followed and there
the Company - www.bhushansteel.com.
are no material departures from the same;
No Company has become Joint venture during the financial year 2015-16. b) the Directors have selected such accounting policies and applied them
A report on the performance and the financial position of the Subsidiaries, consistently and made judgements and estimates that are reasonable
Associates and Joint venture as per Form AOC-1 are presented in the and prudent so as to give a true and fair view of the state of affairs
consolidated financial statement and hence not repeated here for the sake
of the Company as at March 31, 2016 and of the loss of the Company
of brevity. Most of the Subsidiaries and Joint Venture of the Company
for the year ended 31st March 2016;
have not commenced operations and their contributions to the overall
performance of the Company is insignificant. c) the Directors have taken proper and sufficient care for the
maintenance of adequate accounting records in accordance with the
CONTRACTS AND ARRANGEMENTS WITH RELATED PARTIES provisions of the Act for safeguarding the assets of the Company and
The Company has a Board approved policy on Related Party Transactions, for preventing and detecting fraud and other irregularities;
which has been disclosed on the website of the Company and can be d) the Directors have prepared the annual accounts on a going concern
viewed at www.bhushansteel.com basis;
All Related Party Transactions that were entered into during the financial e) the Directors have laid down internal financial controls to be followed
year were on an arms length basis, in the ordinary course of business by the Company and that such internal financial controls are adequate
and were in compliance with the applicable provisions of the Companies and are operating effectively; and
Act, 2013 (the Act) and SEBI (Listing Obligations and Disclosures
Requirements) Regulations 2015 and the provisions of Section 188 of the f) the Directors have devised proper systems to ensure compliance
Companies Act, 2013 are not attracted. Thus disclosure in Form AOC-2 is with the provisions of all applicable laws and that such systems are
not required. adequate and operating effectively.

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BHUSHAN STEEL LIMITED Annual Report 2015-16

VIGIL MECHANISM/ WHISTLE BLOWER POLICY NUMBER OF MEETINGS OF THE BOARD

The Company has adopted a Whistle Blower Policy, to provide a formal Five meetings of the Board of Directors were held during the year. For
mechanism to the Directors and employees to report their concerns further details, please refer report on Corporate Governance presented as
about unethical behaviour, actual or suspected fraud or violation of the Annexure C to this Report.
Companys Code of Conduct or ethics policy. The Policy provides for
adequate safeguards against victimization of employees who avail of the PARTICULARS OF LOANS GIVEN, INVESTMENTS MADE,
mechanism and also provides for direct access to the Chairman of the GUARANTEES GIVEN AND SECURITIES PROVIDED
Audit Committee. It is affirmed that no personnel of the Company has been Particulars of loans given, investments made guarantee given and securities
denied access to the Audit Committee. provided, if any are given in the financial statement.
The Policy is displayed at Companys website www.bhushansteel.com. POLICY ON PREVENTION, PROHIBITION AND REDRESSAL OF
BOARD EVALUATION SEXUAL HARASSMENT AT WORKPLACE

Pursuant to the provisions of the Companies Act, 2013 and SEBI (Listing The Company has zero tolerance for sexual harassment at workplace
Obligations and Disclosures Requirements) Regulations, 2015, the Board and has adopted a Policy on Prevention, Prohibition and Redressal of
has carried out an annual evaluation of its own performance, the directors Sexual Harassment at the Workplace, in line with the provisions of the
individually as well as the evaluation of the working of various committees. Sexual Harassment of Women at Workplace (Prevention, Prohibition
The Independent directors also carried out the evaluation of the Chairman and Redressal) Act, 2013 and the Rules there under. The Policy aims to
and the non-independent directors, the details of which are covered in the provide protection to employees at the workplace and prevent and redress
Corporate Governance Report. complaints of sexual harassment and for matters connected or incidental
thereto, with the objective of providing a safe working environment, where
Criteria for evaluation of Directors For the purpose of proper employees feel secure. The Company has also constituted an Internal
evaluation, the Directors of the Company have been divided into Complaints Committee, known as the Prevention of Sexual Harassment
3 (three) categories i.e. Independent, Non-independent and non- (POSH) Committee, to inquire into complaints of sexual harassment and
executive and executive directors. The criteria for evaluation includes recommend appropriate action.
factors such as engagement, strategic planning and vision, team spirit
and consensus building, effective leadership, domain knowledge, The Company has not received any complaint of sexual harassment during
management qualities, team work abilities, result, achievements, the financial year 2015-16.
understanding and awareness etc. CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND
AUDITORS AND AUDITORS REPORT FOREIGN EXCHANGE EARNINGS AND OUTGO

Statutory Auditors The particulars relating to conservation of energy, technology absorption,

foreign exchange earnings and outgo, as required to be disclosed under sub-
M/s Mehra Goel & Co., Chartered Accountants and M/s. Mehrotra & section 3(m) of Section 134 of the Companies Act, 2013 read with Companies
Mehrotra, Chartered Accountants, Joint Statutory Auditors of the Company, (Accounts) Rules 2014 are provided in Annexure F to this Report.
hold office till the conclusion of the ensuing Annual General Meeting and
are eligible for re-appointment. They have confirmed their eligibility to the EXTRACT OF ANNUAL RETURN
effect that their re-appointment, if made, would be within the prescribed Extract of Annual Return of the Company is annexed herewith as Annexure
limits under the Act and that they are not disqualified for re-appointment. G to this Report.
The Notes on financial statement referred to in the Auditors Report are
self-explanatory and do not call for any further comments. The Auditors PARTICULARS OF EMPLOYEES AND RELATED DISCLOSURES
Report contain one qualification/ reservation etc which is self-explanatory
In terms of the provisions of Section 197(12) of the Act read with Rules 5 of
and do not call for any further comments.
the Companies (Appointment and Remuneration of Managerial Personnel)
Cost Auditors Rules, 2014 as amended from time to time, a statement showing
disclosures pertaining to remuneration and also the names and other
The Board has appointed M/s Kabra & Associatesas cost auditors for
particulars of the employees drawing remuneration in excess of the limits
conducting the audit of cost records of the Company for the financial year
set out in the said rules are provided in the Annexure H to this Report.
2015-16.
Secretarial Audit DEPOSITS

The Board has appointed R. K. Rai, Practising Company Secretary, to The Company has not accepted any deposits from the Public falling within
conduct Secretarial Audit for the financial year 2015-16. The Secretarial the purview of Section 73 of the Companies Act, 2013 read with the
Audit Report for the financial year ended March 31, 2016 is annexed Companies(Acceptance of Deposits) Rules, 2014.
herewith marked as Annexure E to this Report. The remarks in the ACKNOWLEDGEMENT
Secretarial Audit Report are self-explanatory and do not call for any further
comments. Your Directors would like to express their gratitude & appreciation for
the valuable guidance & support received from Government of India,
DISCLOSURES: Government of Australia, various State Governments particularly including
CSR Committee States of Orissa, Maharashtra & Uttar Pradesh; Banks and the financial
Institutions; various stakeholders such as Shareholders, Debenture-
The CSR Committee comprises Mr. B. B. Singal (Chairman), Mr. B. B. holders, Customers, Dealers, Suppliers and all the business associates
Tandon, and Mr. Nittin Johari as other members. among others. Your Directors also wish to place on record their deep
Audit Committee sense of appreciation & gratitude to all Companys employees for their
continuous commitment & enormous personal efforts as well as their
The Audit Committee comprises Mr. B. B. Tandon (Chairman), Mr. B. collective contribution towards the growth of the Company.
B. Singal, Mr. M. V. Suryanarayana and Mr. Ashwani Kumar as other
members. The Directors look forward to their continued support in future.

Nomination and Remuneration Committee for and on behalf of the Board of Directors,

The Nomination and Remuneration Committee comprises Mr. M.V. (B. B. SINGAL)
CHAIRMAN
Suryanarayana (Chairman), Mr. B. B. Singal and Mr. B. B. Tandon as
Place : New Delhi
other members.
Dated : 06-08-2016

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 Corporate overview Management reports financial statements

ANNEXURE A
POLICY FOR SELECTION OF DIRECTORS AND DETERMINING 4.2 Criteria of Independence
DIRECTORS INDEPENDENCE
4.2.1 The Nomination and Remuneration Committee shall assess the
INTRODUCTION independence of Directors at the time of appointment / re-
appointment and the Board shall assess the same annually. The
1.1 Bhushan Steel Limited (BSL) believes that an enlightened Board Board shall re-assess determinations of independence when any new
consciously creates a culture of leadership to provide a long-term interests or relationships are disclosed by a Director.
vision and policy approach to improve the quality of governance.
Towards this, BSL ensures constitution of a Board of Directors with 4.2.2 The criteria of independence, as laid down in Companies Act, 2013
an appropriate composition, size, diversified expertise and experience and Clause 49 of the Equity Listing Agreement, is as below:
and commitment to discharge their responsibilities and duties An independent director in relation to a company, means a director
effectively. other than a managing director or a whole-time director or a nominee
1.2 BSL recognizes the importance of Independent Directors in achieving director
the effectiveness of the Board. BSL aims to have an optimum a. who, in the opinion of the Board, is a person of integrity and
combination of Executive, Non-Executive and Independent Directors. possesses relevant expertise and experience;
2. Scope and Exclusion: b. (i) who is or was not a promoter of the company or its holding,
2.1 This Policy sets out the guiding principles for the Nomination and subsidiary or associate company;
Remuneration Committee for identifying persons who are qualified to (ii) who is not related to promoters or directors in the company, its
become Directors and to determine the independence of Directors, in holding,subsidiary or associate company;
case of their appointment as independent directors of the Company.
c. who has or had no pecuniary relationship with the company, its
3. Terms and References: holding, subsidiary or associate company, or their promoters,or
In this Policy, the following terms shall have the following meanings: directors, during the two immediately preceding financial years or
during the current financial year;
3.1 Director means a director appointed to the Board of a company.
d. none of whose relatives has or had pecuniary relationship or
3.2 Nomination and Remuneration Committee means the committee transaction with the company, its holding, subsidiary or associate
constituted by BSLs Board in accordance with the provisions of company, or their promoters,or directors, amounting to two per cent
Section 178 of the Companies Act, 2013 and Clause 49 of the Equity or more of its gross turnover or total income or fifty lakh rupees or
Listing Agreement. such higher amount as may be prescribed, whichever is lower, during
3.3 Independent Director means a director referred to in sub-section the two immediately preceding financial years or during the current
(6) of Section 149 of the Companies Act, 2013 and Clause 49(II)(B) financial year;
of the Equity Listing Agreement. e. who, neither himself nor any of his relatives
4. Policy: (i) holds or has held the position of a key managerial personnel
4.1 Qualifications and criteria oris or has been employee of the company or its holding,
subsidiary or associate company in any of the three financial
4.1.1 Nomination and Remuneration Committee, and the Board, shall review
years immediately preceding the financial year in which he is
on an annual basis, appropriate skills, knowledge and experience
proposed to be appointed;
required of the Board as a whole and its individual members. The
objective is to have a Board with diverse background and experience (ii) is or has been an employee or proprietor or a partner, in any
that are relevant for the Companys operations. of the three financial years immediately preceding the financial
year in which he is proposed to be appointed, of
4.1.2 In evaluating the suitability of individual Board members, the
Nomination and Remuneration Committee may take into account (A) a firm of auditors or company secretaries in practice or
factors, such as: General understanding of the Companys cost auditors of the company or its holding, subsidiary or
business dynamics, social perspective;Educational and professional associate company; or
background Standing in the profession;Personal and professional (B) any legal or a consulting firm that has or had any
ethics, integrity and values;Willingness to devote sufficient time and transaction with the company, its holding, subsidiary or
energy in carrying out their duties and responsibilities effectively. associate company amounting to ten per cent or more of
4.1.3 The proposed appointee shall also fulfill the following requirements: the gross turnover of such firm;
Shall possess a Director Identification Number; Shall not be (iii) holds together with his relatives two per cent or more of the
disqualified under the Companies Act, 2013;Shall give his written total voting power of the company; or
consent to act as a Director; Shall endeavour to attend all Board
Meetings and wherever he is appointed as a Committee Member, (iv) is a Chief Executive or director, by whatever name called, of
the Committee Meetings; Shall abide by the Code of Conduct any non profit organisation that receives twenty-five per cent
established by the Company for Directors and Senior Management or more of its receipts from the company, any of its promoters,
Personnel;Shall disclose his concern or interest in any company directors or its holding,subsidiary or associate company or that
or companies or bodies corporate, firms, or other association of holds two per cent or more of the total voting power of the
individuals including his share holding at the first meeting of the company; or
Board in every financial year and thereafter whenever there is a (v) is a material supplier, service provider or customer or a lessor or
change in the disclosures already made;Such other requirements as lessee of the company.
may be prescribed, from time to time, under the Companies Act,
2013, Equity Listing Agreements and other relevant laws. f. shall possess appropriate skills,experience and knowledge in one
or more fields of finance, law, management,sales, marketing,
4.1.4 The Nomination and Remuneration Committee shall evaluate each administration,research, corporate governance,technical operations,
individual with the objective of having a group that best enables the corporate social responsibility or other disciplines related to the
success of the Companys business. Companys business.

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BHUSHAN STEEL LIMITED Annual Report 2015-16

g. shall possess such other qualifications as may be prescribed, from C. The remuneration policy seeks to enable the company to provide
time to time,under the Companies Act, 2013. a well- balanced and performance-related compensation package,
taking into account shareholder interests, industry practices and
h. who is not less than 21 years of age.
relevant Indian corporate regulations.
4.2.3 The Independent Directors shall abide by the Code for Independent
D. The remuneration policy will ensure that the interests of Executives
Directors as specified in Schedule IV to the Companies Act, 2013.
are aligned with the business strategy and risk tolerance, objectives,
4.3 Other directorships / committee memberships values and long-term interests of the company and will be consistent
with the pay-for-performance principle.
4.3.1 The Board members are expected to have adequate time and expertise
and experience to contribute to effective Board performance. E. The remuneration policy will ensure that remuneration to Executives
Accordingly, members should voluntarily limit their directorships in involves a balance between fixed pay and incentive (by way of
other listed public limited companies in such a way that it does not increment/bonus/ promotion/any other form) reflecting short and
interfere with their role as directors of the Company. The Nomination long-term performance objectives appropriate to the working of the
and Remuneration Committee shall take into account the nature of, company and its goals.
and the time involved in a Directors service on other Boards, in
evaluating the suitability of the individual Director and making its 3. PRINCIPLES OF REMUNERATION
recommendations to the Board. a. Support for Objectives: Remuneration and reward frameworks and
4.3.2 A Director shall not serve as Director in more than 20 companies of decisions shall be developed in a manner that is consistent with,
which not more than 10 shall be Public Limited Companies. supports and reinforces the achievement of the Companys objectives.

4.3.3 A Director shall not serve as an Independent Director in more than 7 b. Transparency: The process of remuneration management shall
Listed Companies and not more than 3 Listed Companies in case he be transparent, conducted in good faith and in accordance with
is serving as a Whole-time Director in any Listed Company. appropriate levels of confidentiality.

4.3.4 A Director shall not be a member in more than 10 Committees or c. Internal equity: The Company shall remunerate the Executives
act as Chairman of more than 5 Committees across all companies in in terms of their roles and responsibilities within the organisation.
which he holds directorships. Positions shall be formally evaluated to determine their relative
weight in relation to other positions within the Company.
For the purpose of considering the limit of the Committees, Audit Committee
and Stakeholders Relationship Committee of all Public Limited Companies, d. External equity: The Company strives to pay an equitable
whether listed or not, shall be included and all other companies including remuneration, capable of attracting and retaining high quality
Private Limited Companies, Foreign Companies and Companies under personnel. Therefore the Company will remain logically mindful of
Section 8 of the Companies Act, 2013 shall be excluded. the ongoing need to attract and retain high quality people, and the
influence of external remuneration pressures.
e. Flexibility: Remuneration and reward offerings shall be sufficiently
ANNEXURE B flexible to meet both the needs of individuals and those of the
Company whilst complying with relevant tax and other legislation.
REMUNERATION POLICY FOR DIRECTORS, KEY MANAGERIAL f. Performance-Driven Remuneration: The Company shall entrench
PERSONNEL AND OTHER EMPLOYEES a culture of performance driven remuneration, whether as part of
1. PREAMBLE increment or separately and in such form as may be considered
appropriate.
a. The remuneration policy provides a framework for remuneration
paid to the members of the Board of Directors (Board) and for g. Affordability and Sustainability: The Company shall ensure that
Key Managerial Personnel (KMP) and the Management Personnel remuneration is affordable on a sustainable basis.
(MP) of the Company (collectively referred to as Executives). The 4. REMUNERATION TO NON EXECUTIVE DIRECTORS
expression KMP shall have the same meaning as defined under the
Companies Act, 2013, management personnel means personnel Non Executive directors may be paid remuneration by way of fee and
of the company excluding Board of Directors comprising such levels reimbursement of expenses for participation in the Board and other
of managerial personnel as may be decided from time to time. This meetings and commission and/or such other payments as may be
Policy also provides a framework for identification of persons who permitted by the law applicable to such payments. Such payments
are qualified to become directors and who may be appointed as shall be subject to the provisions of Companies Act, 2013.
senior management for recommendation of their appointment to
5. COMPENSATION STRUCTURE
the board. Senior management means personnel of the company
who are members of its core management team excluding Board of Executives unless otherwise decided by the Committee shall receive
Directors comprising all members of management one level below the a competitive remuneration package consisting of the following
executive directors, including the functional heads. components:
b. This Policy has been framed by the Nomination and Remuneration Fixed salary
Committee of the Board of Directors and based on its recommendation,
Fixed salary rewards the executives for their day-to-day job
approved by the board of directors of the Company.
performance and ensures a balanced overall remuneration package.
c. The policy may be reviewed by the Nomination and Remuneration The fixed salary shall comprise of basic salary and allowances as per
Committee of the Board of Directors. the rules of the Company.
2. AIMS & OBJECTIVES Personal benefits
A. The aims and objectives of this remuneration policy may be Executives may have access to benefits/perquisites as per the rules
summarized as follows: and regulations of the Company. Executives may also be entitled to
retirement benefits such as provident fund, gratuity and/or such other
B. The remuneration policy aims to enable the company to attract, retain benefits as per the rules of the Company.
and motivate high quality members for the Board and executives.

6
 Corporate overview Management reports financial statements

6. CRITERIA FOR IDENTIFICATION OF THE BOARD MEMBERS They must have the aptitude to critically evaluate managements
AND APPOINTMENTS OF SENIOR MANAGEMENT working as part of a team in an environment of collegiality and trust.
The members of the board shall possess appropriate skills, The Committee evaluates each individual with the objective of having
qualification, characteristics and experience. The objective is to a group that best enables the success of the Companys business and
have a Board with diverse background and experience in business, achieve its objectives.
government, academics, technology, human resources, social
The candidate for the appointment of senior management should
responsibilities, finance, law etc. and in such other areas as may be
possess adequate qualification, characteristics and work experience.
considered relevant or desirable to conduct the Companys business
in a holistic manner. The candidate for senior management should also possess high level
of personal and professional ethics, integrity and values.
Independent directors shall be person of integrity and possess
expertise and experience and/or someone who the Committee/board For any appointment of senior management, the existing employees
believes could contribute to the growth/philosophy/strategy of the in the organisation may be preferred. While assessing the candidature
Company. of existing employee, his/her past performance in the Company
should be taken into consideration.
In evaluating the suitability of individual Board members, the
Committee takes into account many factors, including general 7. AMENDMENTS TO THIS POLICY
understanding of the Companys business dynamics, global business,
The Nomination and Remuneration Committee is entitled to amend
social perspective, educational and professional background and
this policy including amendment or discontinuation of one or more
personal achievements.
incentive programmes introduced in accordance with this Policy.
Director should possess high level of personal and professional ethics,
integrity and values. They should be able to balance the legitimate 8. APPROVAL AND PUBLICATION
interest and concerns of all the Companys stakeholders in arriving This remuneration policy as framed and or amended by the Committee
at decisions, rather than advancing the interests of a particular shall be recommended to the Board of Directors for its approval.
constituency.
The policy of the Company has been uploaded on the Companys
In addition, Directors must be willing to devote sufficient time and website www.bhushansteel.com.
energy in carrying out their duties and responsibilities effectively.

7
BHUSHAN STEEL LIMITED Annual Report 2015-16

ANNEXURE C
CORPORATE GOVERNANCE REPORT
1. COMPANYS PHILOSOPHY ON CORPORATE GOVERNANCE: views to the Companys management while discharging its fiduciary
responsibilities.
Corporate Governance has always been the top priority of the
Company and has been taken high in letter and in spirit. Your Company Composition and category of Directors are as under :-
strongly believes in maintaining transparency, accountability and Category Name of Directors.
integrity which are the main components in Corporate Governance.
The philosophy is manifested in its operations through standards of Promoters/Executive Director Sh. Neeraj Singal
ethical behavior, both within the organization as well as in external Promoter Non-Executive Director & Sh. B B Singal
relationships too. The Company aims at maximizing shareholders Chairman
value and its philosophy is based on the fair and transparent
Non-Promoter Executive Directors Sh. Nittin Johari
disclosure of issues related with the Companys business, financial
Sh. Rahul Sen Gupta
performance and matters relating to stakeholders interest. We
Sh. P.K. Aggarwal
believe that Corporate Governance is the key element in improving
efficiency, growth and investors confidence. Independent Non-Executive Directors Sh. B.B. Tandon
Sh. M. V. Suryanarayana
Your Companys practices relating to the Corporate Governance Sh. Rakesh Singhal
for the Financial Year ended 31st March 2016 are discussed in the Sh. Ashwani Kumar
following sections: Sh. Pradeep Patni
2. BOARD OF DIRECTORS: Sh. Sahil Goyal
Sh. Pankaj Sharma
The current policy of the Company is to have an appropriate mix of Sh. Kapil Vaish
executive and independent directors to maintain the independence Nominee Director Smt. Sunita Sharma ( LIC)
of the Board, and to separate its functions of governance and Sh. A. K. Deb (SBI)
management. As on 31.03.2016 the Board of Director consists of Dr. Rajesh Yaduvanshi (PNB)
Sixteen (16) Directors, out of which Twelve (12) are Non Executive
Directors, Eight (08) of whom being independent. Mr. B.B. Singal is father of Mr. Neeraj Singal. None of the other directors
are related to any other director on the Board . Further all the Independent
The Directors have expertise in the fields of industry, operations, directors are meeting the criteria as laid down in Section 149(6) of the
finance, legal and management. The board shapes the vision of Companies Act, 2013 read with Regulation 16(b) of SEBI(Listing Obligations
the Company and provides strategic guidance and independent and Disclosure Requirements) Regulations, 2015.
THE ATTENDANCE RECORD OF THE DIRECTORS AT THE BOARD MEETINGS HELD DURING FINANCIAL YEAR 2015-16 AND AT THE LAST ANNUAL
GENERAL MEETING AS ALSO THE NUMBER OF DIRECTORSHIPS, COMMITTEE MEMBERSHIPS AND COMMITTEE CHAIRMANSHIPS HELD BY THEM IN
OTHER COMPANIES AS ON 31.03.2016 ARE GIVEN BELOW:

Attendance Particulars No of directorships, committee membership

and chairmanship of Public companies
Sr No. of Board No. of Board Attendance Other Committee Committee
Name of Directors
No Meetings held during Meeting at Last AGM. Directorships membership Chairmanship
their tenure in the Attended (*) (*)(#) (*)(#)
F.Y. 2015-16
1. Sh. B.B. Singal 05 04 NO 6 4 3
2. Sh. Neeraj Singal 05 04 YES 3 2 -
3. Smt. Sunita Sharma $ 05 03 YES 5* 2* 1*
4. Sh. A. K. Deb 05 05 YES 3 2 -
5. Dr. Rajesh Yaduvanshi 04 04 YES 2 - -
6. Sh. B.B. Tandon 05 04 YES 8 9 2
7. Sh. M. V. Suryanarayana 05 05 YES 2 2 -
8. Sh. Rakesh Singhal 05 04 NO 1 - -
9. Sh. Ashwani Kumar 05 04 NO 7 8 4
10. Sh. Pradeep Patni 05 01 YES - - -
11. Sh. Sahil Goyal 05 03 YES 2 - -
12. Sh. Pankaj Sharma 05 04 NO - - -
13. Sh. Kapil Vaish 04 04 YES 1 1 1
14. Sh. Nittin Johari 05 05 YES 1 - -
15. Sh. Rahul Sen Gupta 05 03 NO 3 - -
16. Sh. P.K. Aggarwal 05 05 YES 2 1 -
17. Sh. S. R. Sharma@ 01 NIL NO - - -
@ Ceased to be director w.e.f. 10.06.2015. $ Ceased to be director w.e.f. 06.04.2016.
* Excludes Directorships, Committee memberships and Committee Chairmanships of Private Limited Companies, Foreign Companies and Companies
incorporated U/s 8 of the Companies Act, 2013
# In accordance with Regulation 26 of the SEBI(Listing Obligations and Disclosure Requirements) Regulations, 2015 Memberships / Chairmanships of only
Audit Committee and Stakeholder Relationship Committee have been considered.
None of the Director is member in more than ten committees and Chairperson of more than five committees across all listed entities.

8
 Corporate overview Management reports financial statements

3. BOARD MEETINGS: a. Matters required to be included in the Directors

Responsibility Statement to be included in the Boards
The Board of Directors of the Company meets at regular intervals to discuss
report in terms of clause (c) of sub-section 3 of section
regular business matters and decide on Companys strategy, policies and
134 of the Companies Act, 2013
programs. Board Meetings are usually held at Registered and Corporate
Office of the Company at New Delhi. During the year five (05) Board b. Changes, if any, in accounting policies and practices and
Meetings were held on 27/05/2015, 14/08/2015, 19/09/2015, 14/11/2015 reasons for the same
and 12/02/2016. Maximum time gap between the two consecutive
c. Major accounting entries involving estimates based on
meetings had not exceeded 120 days.
the exercise of judgment by management
The agenda for Board Meetings and notes are circulated to the Directors
d. Significant adjustments made in the financial statements
in advance and all material information is included in the agenda for
arising out of audit findings
facilitating well informed and meaningful deliberation and decision making.
The agenda of the meetings of the Board inter alia includes annual e. Compliance with listing and other legal requirements
operating plans, capital budgets and updates therein. relating to financial statements

4. AUDIT COMMITTEE: f. Disclosure of any related party transactions

The Company has an Audit Committee of Directors since 28-06-1997. g. Qualifications in the draft audit report
Presently the Committee consists of Four Directors namely (1) Sh. B.B. 5. Reviewing, with the management, the quarterly financial
Tandon (2) Sh. B.B. Singal (3) Sh. M.V. Suryanarayana and (4) Sh. Ashwani statements before submission to the board for approval;
Kumar.
6. Reviewing, with the management, the statement of uses /
Sh. B.B. Tandon is the Chairman of the Audit Committee. application of funds raised through an issue (public issue, rights
The committees composition meets with the requirements of Section issue, preferential issue, etc.), the statement of funds utilized
177 of the Companies Act, 2013 and Regulation 18 of the SEBI(Listing for purposes other than those stated in the offer document /
Obligations and Disclosure Requirements) Regulations, 2015 as all the prospectus / notice and the report submitted by the monitoring
members of the Audit Committee are independent except Sh. B. B. Singal. agency monitoring the utilisation of proceeds of a public or
rights issue, and making appropriate recommendations to the
As per Section 177 of the Companies Act, 2013 the Audit Committee acts Board to take up steps in this matter;
in accordance with the terms of reference specified in writing by the Board
which, inter alia, include 7. Review and monitor the auditors independence and
performance, and effectiveness of audit process;
i. the recommendation for appointment, remuneration and
terms of appointment of auditors of the company; 8. Approval or any subsequent modification of transactions of the
company with related parties;
ii. review and monitor the auditors independence and
performance, and effectiveness of audit process; 9. Scrutiny of inter-corporate loans and investments;

iii. examination of the financial statement and the auditors report 10. Valuation of undertakings or assets of the company, wherever
thereon; it is necessary;

iv. approval or any subsequent modification of transactions of the 11. Evaluation of internal financial controls and risk management
company with related parties; systems;

v. scrutiny of inter-corporate loans and investments; 12. Reviewing, with the management, performance of statutory
and internal auditors, adequacy of the internal control systems;
vi. valuation of undertakings or assets of the company, wherever
it is necessary; 13. Reviewing the adequacy of internal audit function, if any,
including the structure of the internal audit department,
vii. evaluation of internal financial controls and risk management staffing and seniority of the official heading the department,
systems; reporting structure coverage and frequency of internal audit;
viii. monitoring the end use of funds raised through public offers 14. Discussion with internal auditors of any significant findings and
and related matters. follow up there on;
The Audit Committee shall have powers, which should include the 15. Reviewing the findings of any internal investigations by the
following: internal auditors into matters where there is suspected fraud
1. To investigate any activity within its terms of reference. or irregularity or a failure of internal control systems of a
material nature and reporting the matter to the board;
2. To seek information from any employee.
16. Discussion with statutory auditors before the audit commences,
3. To obtain outside legal or other professional advice. about the nature and scope of audit as well as post-audit
4. To secure attendance of outsiders with relevant expertise, if it discussion to ascertain any area of concern;
considers necessary. 17. To look into the reasons for substantial defaults in the payment
Role of Audit Committee are detailed hereunder:- to the depositors, debenture holders, shareholders (in case of
non-payment of declared dividends) and creditors;
1. Oversight of the companys financial reporting process and
the disclosure of its financial information to ensure that the 18. To review the functioning of the Whistle Blower mechanism;
financial statement is correct, sufficient and credible; 19. Approval of appointment of CFO (i.e., the whole-time Finance
2. Recommendation for appointment, remuneration and terms of Director or any other person heading the finance function or
appointment of Statutory Auditors and Cost Auditors of the discharging that function) after assessing the qualifications,
company; experience and background, etc. of the candidate;
3. Approval of payment to statutory auditors for any other 20. Carrying out any other function as is mentioned in the terms of
services rendered by the statutory auditors; reference of the Audit Committee.
4. Reviewing, with the management, the annual financial 21. Reviewing the following information:
statements and auditors report thereon before submission to I. Management discussion and analysis of financial condition and
the board for approval, with particular reference to: results of operations;

9
BHUSHAN STEEL LIMITED Annual Report 2015-16

II. Statement of significant related party transactions (as defined governance, regulatory, financial, fiduciary and ethical requirements
by the Audit Committee), submitted by management; of the Board / Committee, adherence to Code of Conduct and how the
independent Director is able to bring independent judgment during board
III. Management letters / letters of internal control weaknesses
deliberations on strategy, performance, risk management etc in addition to
issued by the statutory auditors;
the criteria for evaluation of Non- Executive Directors.
IV. Internal audit reports relating to internal control weaknesses;
and DETAIL OF REMUNERATION PAID TO DIRECTORS :

V. The appointment, removal and terms of remuneration of the (a) Remuneration paid to Executive Directors :
Chief internal auditor
Sr. Name Designation Salary Other Total
During the year, the committee has met five (5) times No. including PF Perquisites
27/05/2015, 14/08/2015, 19/09/2015, 14/11/2015 and contribution
12/02/2016. Sh. M.V. Suryanarayana has attended all the (`) (`) (`)
meetings of the Audit Committee held during the year. Sh. B.
1. Sh. Vice 1,20,00,000 26,06,934 1,46,06,934
B. Tandon , Sh. B.B. Singal and Sh. Ashwani Kumar attended
Neeraj Chairman
four meetings of the Audit Committee .
Singal and
5. NOMINATION AND REMUNERATION COMMITTEE: Managing
Director
In compliance with the provision of Section 178 (1) of the Companies 2. Sh. Nittin Whole-Time 1,38,38,462 39,600 1,38,78,062
Act, 2013 and Regulation 19 of the SEBI(Listing Obligations and Johari Director
Disclosure Requirements) Regulations, 2015 Nomination and 3. Sh. Whole-Time 95,30,769 39,600 95,70,369
Remuneration Committee was constituted. Presently the Committee Rahul Director
comprises of Sh. M.V. Suryanarayana, Sh. B. B. Tandon and Sh. B.B. Sen
Singal. Gupta
Sh. M.V. Suryanarayana (Non Executive director) is the Chairman of 4. Sh. P.K. Whole-Time 95,52,369 39,600 95,91,969
the Committee. Aggarwal Director
During the year one meeting of Nomination and Remuneration
Committee was held on 14.08.2015 which was attended by all the (b) Sitting fees paid to Non Executive Directors: The Non-Executive
members of the Committee except Sh. B. B. Tandon. Directors are paid sitting fees for each Meeting of the Board as well
as any other committee meetings attended by them.
TERMS OF REFERENCE OF THE COMMITTEE
To identify persons who are qualified to become directors and who Sr. Name Designation Sitting No. of
may be appointed in senior management in accordance with the No. Fees Equity
criteria laid down and to recommend to the Board their appointment (`) shares
and removal. held as on
31.03.16
To carry out evaluation of every directors performance. 1. Sh. B.B.Singal Chairman 8,80,000 41103391
To formulate the criteria for determining qualifications, positive 2. Sh. B.B. Tandon Director 2,00,000 -
attributes and independence of a director and recommend to the 3. Sh. M.V. Director 2,40,000 -
Board a policy, relating to the remuneration for the directors, key Suryanarayana
managerial personnel and other employees. 4. Sh. Ashwani Kumar Director 1,80,000 -
5. Sh. Pradeep Patni Director 20,000 -
To formulate remuneration policy and ensure that- 6. Sh. Sahil Goyal Director 80,000 -
7. Sh. Rakesh Singhal Director 1,00,000 -
(a) the level and composition of remuneration is reasonable and
8. Sh. Pankaj Sharma Director 1,00,000 -
sufficient to attract, retain and motivate directors of the quality
9. Sh. Kapil Vaish Director 1,00,000 -
required to run the company successfully;
TOTAL :- 19,00,000
(b) relationship of remuneration to performance is clear and meets * Including sitting fees paid for attending the separate meeting
appropriate performance benchmarks; and of Independent directors.
(c) remuneration to directors, key managerial personnel and Criteria for making payments to Non Executive Directors of
senior management involves a balance between fixed and the Company has been disclosed in the Policy for Nomination,
incentive pay reflecting short and long-term performance Remuneration and Performance Evaluation adopted by the Company
objectives appropriate to the working of the company and its which is uploaded on the on the website of the Company at http://
goals www.bhushan-group.org/downloads.html.
REMUNERATION POLICY: (c) Besides salary and perks Executive Directors are entitled to
superannuation or annuity fund, leave encashment and gratuity.
The remuneration policy is directed towards rewarding performance based
on review of achievement on a periodical basis. The remuneration policy (d) No Commission is paid to any Director.
is in consonance with the existing Industrial practice. The remuneration
structure of the Executive Directors comprises of salary, perquisites and 6. STAKEHOLDERS RELATIONSHIP COMMITTEE:
allowances, contribution to provident fund, leave encashment and gratuity. Stakeholders Relationship Committee comprises of Sh. B.B. Singal,
Remuneration Policy of the Company has been uploaded on the website of Sh. Neeraj Singal, and Sh. P.K. Aggarwal, Directors. This Committee
the Company at http://www.bhushan-group.org/downloads.html. has been constituted for considering and resolving the grievances of
security holders of the company. Sh. B.B. Singal is the Chairman of
PERFORMANCE EVALUATION CRITERIA FOR INDEPENDENT the Committee.
DIRECTORS
The board has designated Mr. O.P. Davra as the Compliance Officer.
The Independent Directors are evaluated on parameters like Directors
The total number of complaints received and replied to the
contributions at Board / Committee meetings, willingness to devote time
satisfaction of Shareholders during the year under review were 3.
and effort to understand the Company and its business and a readiness
All the complaints were disposed off and there was no complaint
to participate in events outside the meeting room, ability to understands
pending as on March 31, 2016.

10
 Corporate overview Management reports financial statements

7. COMMITTEE ON BORROWINGS, INVESTMENTS AND LOANS: Particulars F.Y. 2014-15 F.Y. 2013-14 F.Y. 2012-13
The Company has a Committee on Borrowings, Investment and Day, date, Saturday Saturday Saturday
loans. Presently the committee consists of three Directors namely Time & Venue 19th Sep. 2015 20th Sep. 2014 21st Sep. 2013
(1) Sh. B. B. Singal, (2) Sh. Neeraj Singal and (3) Sh. Nittin Johari. at 11.00 A. at 11.00 A. at 11.00 A.
Sh. B.B. Singal is the Chairman of the Committee. M. at Airforce M. at Airforce M. at Airforce
Auditorium, Auditorium, Auditorium,
Twenty seven (27) Nos. of Meetings of Committee of Board of Subroto Park, Subroto Park, Subroto Park,
Directors on Borrowings were held during the year 2015 - 2016 on New Delhi- 110 New Delhi- 110 New Delhi- 110
23-04-2015, 29-05-2015, 03-06-2015, 23-06-2015, 26-06-2015, 010 010 010
27-06-2015, 29-06-2015, 10-07-2015, 22-07-2015 , 28-07-2015,
20-08-2015, 25-08-2015, 19-09-2015, 23-09-2015, 29-09-2015, Special One special Nine Special One special
20-10-2015, 27-11-2015, 18-12-2015, 24-12-2015, 31-12-2015, 20- Resolutions resolution Resolutions were resolution was
01-2016, 25-01-2016, 02-02-2016,15-02-2016, 22-02-2016, 03-03- was passed passed passed regarding
2016, 28-03-2016.
regarding issue further issue of
8. CORPORATE SOCIAL RESPONSIBILITY (CSR) COMMITEE of Redeemable securities
Cumulative
The Company has constituted Corporate Social Responsibility (CSR) Preference
Committee comprising Sh. B.B. Singal, being its Chairman and Sh. Shares
Nittin Johari and Sh. B. B. Tandon as its members.
Special Resolutions passed through Postal Ballot
The Committees prime responsibility is to assist the Board in
discharging its social responsibilities by way of formulating and A Notice of postal ballot dated 14-02-2015 pursuant to Section 110 and
monitoring implementation of the framework of corporate social other applicable provisions of the Companies Act, 2013 (the Act), if any,
responsibility policy, observe practices of Corporate Governance at read together with the Companies (Management and Administration)
all levels, and to suggest remedial measures wherever necessary. Rules, 2014 has been sent to the members.
The Board has also empowered the Committee to look into matters The Company has followed the procedure as prescribed under Companies
related to sustainability and overall governance. (Management and Administration) Rules, 2014 and Members were
The Committees constitution and terms of reference meet with the provided the facility to cast their votes through electronic voting (e-voting)
requirements of the Companies Act, 2013. or through postal ballot.
Terms of Reference of the Committee, inter alia includes the Mr. R.S. Bhatia, a practicing Company Secretary (CP No. 2514, FCS
following: 2599) was appointed by the Board of Directors of the Company as the
scrutinizer for conducting the Postal Ballot process and e-voting process in
I. To formulate and recommend to the Board, a Corporate
a fair and transparent manner.The result of Postal Ballot was announced
Social Responsibility (CSR) Policy indicating activities to be
on Monday, 27th April, 2015 at the Registered Office of the Company.
undertaken by the Company in compliance with provisions of
Total ten Resolutions were passed through Postal Ballot out of which nine
the Companies Act, 2013 and rules made thereunder;
resolutions were Special Resolutions. The Voting Pattern are as under:
II. To recommend the amount of expenditure to be incurred on
the CSR activities; Details of Voting Pattern

III. To monitor the implementation of the CSR Policy of the Sr. Type of Total No. Valid vote Valid % of % of
Company from time to time. No. Resolution of votes cast in vote cast Votes in Votes
During the year one meeting of Corporate Social Responsibility ( Ordinary Polled Favour Against the favour against
Committee was held on 12.02.2016 which was attended by all the / Special) of the resolutions on valid on valid
members of the Committee resolutions votes votes
polled polled
9. INDEPENDENT DIRECTORS MEETING 1 Ordinary 198955103 198913937 35133 99.98 0.02
During the year under review, the Independent Directors met on 2 Special 198955103 190886196 8057925 95.95 4.05
12.02.2016 to discuss and review : 3 Special 198955103 190805949 8137827 95.91 4.09
4 Special 198955103 198905986 37385 99.98 0.02
the performance of non-independent directors and the Board 5 Special 198955103 190805707 8137820 95.91 4.09
as a whole 6 Special 198955103 198904915 38297 99.98 0.02
the performance of the Chairperson of the company, taking 7 Special 198955103 190805397 8136085 95.91 4.09
into account the views of executive directors and non-executive 8 Special 198955103 198906096 37731 99.98 0.02
directors 9 Special 198955103 190806402 8137300 95.91 4.09
10 Special 198955103 48480542 8050543 85.76 14.24
the quality, quantity and timeliness of flow of information
between the Company management and the Board that is At present, no special resolution is proposed to be passed through postal
necessary for the Board to effectively and reasonably perform ballot.
their duties
12. DISCLOSURES
The meeting was attended by all the independent directors.
12(a). There were no transaction of material nature with its related
Details of familiarization programme imparted to the Independent party i. e. with its promoters, the Directors or the Management,
Directors has been uploaded on the website of the Company at their subsidiaries or relatives etc. that may have potential
http://www.bhushan-group.org/downloads.html. conflict with the interest of Company at large.
10. SUBSIDIARY COMPANIES 12(b). There were no instances of non-compliance by the Company
nor have penalties, strictures imposed on the company by
There is no material non-listed subsidiary Company requiring
Stock Exchange or SEBI or any Statutory Authority, on any
appointment of Independent Director of the Company on the Board
matter related to capital markets, during the last three years.
of Directors of the subsidiary companies.
12(c). The Company has adopted a Whistle Blower Policy and has
11. GENERAL BODY MEETINGS: established the necessary mechanism for employees to report
Location and time for the last three (03) Annual General Meetings concerns about unethical behaviour. No person has been
(AGMs): denied access to Audit Committee. Whistle Blower Policy of the

11
BHUSHAN STEEL LIMITED Annual Report 2015-16

Company has been uploaded on the website of the Company Annual Listing fees for the year 2016-17 have been paid
at http://www.bhushan-group.org/downloads.html. on due dates to both the Stock Exchanges i.e. BSE and
NSE.
12 (d) A Policy for determining Material Subsidiaries has been
uploaded on the website of the Company at http://www. (vii) Market Price Data :
bhushan-group.org/downloads.html.
The High and Low of the share price of the Company at
12 (e) A Policy on dealing with related party transactions has been National Stock Exchange (NSE) and Bombay Stock Exchange
uploaded on the website of the Company at http://www. (BSE) during each month from April, 2015 to March, 2016 are
bhushan-group.org/downloads.html. given below.
(Face value of each Equity Share: ` 2)
13. MEANS OF COMMUNICATION:
Timely sharing and disclosure of consistent, comparable, relevant and DATE NSE BSE
High Low High Low
reliable information on the Companys performance is at the core of its
Corporate Governance Policy. Summary of major efforts of the Company in April, 2015 76.50 60.40 76.50 60.60
this regard is given below: May, 2015 64.80 50.00 64.65 53.50
June, 2015 76.00 49.05 75.90 49.00
Financial Results
July, 2015 75.45 54.20 75.50 54.70
The Company publishes un-audited quarterly financial results and audited August, 2015 65.50 47.20 65.40 47.50
annual financial results normally in Business Standard (English), and September, 2015 52.90 41.00 53.80 41.90
Business Standard (Hindi) Newspapers. The results are promptly October, 2015 49.80 42.55 49.70 42.70
furnished to the Stock Exchanges for display on their respective web-sites. November, 2015 45.50 40.15 45.60 40.50
The results are also put on the website of the Company i.e. http://www. December, 2015 50.85 41.50 50.75 41.90
bhushansteel.com immediately after the Board Meetings. January, 2016 47.30 35.55 47.30 35.50
February, 2016 43.60 32.30 41.05 32.50
Annual Report March, 2016 38.85 32.70 39.00 32.75
Annual Report containing inter alia, Audited Annual Accounts, Consolidated (viii) Share price performance in comparison to broad based
Financial Statements Directors Report, Management Discussion and indices NSE Nifty and BSE Sensex based on share
Analysis and other regulatory reports is circulated to members and others price on 31-03-2016.
entitled thereto. The management Discussion and Analysis Report forms During financial year 2015-16, share price of the Company was
part of Annual Reports. The Annual Report of previous years are also down in NSE by 44.79% and 45.36% in BSE as compared to
available on Companys web-site. decrease in NSE Nifty by 8.79% and BSE Sensex by 9.35%.
Corporate Presentation (ix) Share Transfer System:
Corporate Presentation of the Company covering inter alia Companys Pursuant to SEBI Circular Nos. D&CC/FITTC/CIR-15/2002 dated
Overview, Growth History, Key Highlights and Summary Operating & 27.12.2002 and D&CC/FITTC/CIR-18/2003 dated 12/02/2003,
Financial Performance is regularly given to institutional investors and latest M/s. RCMC Share Registry Pvt. Ltd., which is already the
Corporate Presentation is available on Companys web-site. Depository Interface of the Company for both NSDL & CDSL,
have been appointed as Registrar and Transfer Agents (RTA)
14. GENERAL SHAREHOLDERS INFORMATION :
w.e.f. 31/03/2003 for all the work related to share registry in
(i) Annual General Meeting for the year ending 31st March, terms of both physical and electronic.
2016 On Saturday, 17th September, 2016 at 11.00 A.M at
Share Transfer Committee:
Air Force Auditorium, Subroto Park, New Delhi 110010.
It approves the transfer and transmission of securities, issuance of
(ii) As required under Regulation 36(3) of SEBI (Listing Obligations
duplicate share certificate. This Committee comprises of Sh. P.K.
and Disclosure Requirements) Regulations, 2015 particulars
Aggarwal and Sh. O.P. Davra.
of Directors seeking appointment at the forthcoming Annual
General Meeting (AGM) are given in the Notes to the Notice of Physical Mode :
the AGM to be held on 17th September, 2016.
Transfers of Equity shares in physical form are registered within a
(iii) Financial Year : 1st April To 31st March period of 15 days from the date of receipt. After the transfer, Share
Certificates are immediately sent. The Equity shares of the company
Financial Reporting for the Quarter ending :
are to be traded compulsorily in Demat mode w.e.f. 25.09.2000.
30th June, 2016 On or before 14th September, 2016 Dematerialised Mode :
30th September, 2016 On or before 14th December, 2016
31st December, 2016 On or before 14th February, 2017 The Companys Equity Share are eligible for dematerialisation. The
31st March, 2017 On or before 30th May, 2017 Company had signed Agreements with both the Depositories namely:
NSDL and CDSL. The Shareholders may therefore hold Companys
(iv) Date of Book Closure : Share in Electronic Mode. The companys ISIN No. for both the
The Book closure starts from 14th September, 2016 to 17th Depositories is INE824B01021.
September, 2016 (both days inclusive) for the purpose of 33rd (x) Distribution of Shareholding as on 31.03.2016
Annual General Meeting of the Company to be held on 17th
September, 2016. Distribution Schedule:
Shareholding Shareholders Share holdings
(v) Dividend payment date :
of value of ` Number % to Shares Amount % to
No dividend has been declared for 2015-16. total total
UPTO TO 5000 47250 97.70 11748730 23497460 5.19
(vi) Listing of Shares & Stock Code: 5001 TO 10000 646 1.34 2327052 4654104 1.03
The Equity Shares of the Company are listed on the following 10001 TO 242 0.50 1813000 3626000 0.80
Stock Exchanges. 20000
20001 TO 73 0.15 899351 1798702 0.40
(1) BSE Ltd. (Stock Code : 500055) 30000
(2) National Stock Exchange of India Ltd. (Stock Code : 30001 TO 27 0.06 476366 952732 0.21
BHUSANSTL) 40000

12
 Corporate overview Management reports financial statements

Shareholding Shareholders Share holdings For the purpose of this declaration, Senior Management team means
of value of ` Number % to Shares Amount % to the members of the Management one level below the Managing
total total Director as on 31st March, 2016.
40001 TO 18 0.04 406309 812618 0.18
50000 Place: New Delhi Neeraj Singal
50001 TO 35 0.07 1245332 2490664 0.55
Date: 06-08-2016 Managing Director
100000
100001 and 71 0.15 207598606 415197212 91.65
Above 17. ADDRESS FOR CORRESPONDENCE :
48362 100.00 226514746 453029492 100.00
Registered Office : Registrar and Transfer Agent :
Shareholding Pattern:
Bhushan Steel Limited RCMC Share Registry Pvt. Ltd.
Sr. No. Category %age Ground Floor, Hyatt Regency (Unit : BHUSHAN STEEL LIMITED)
1 Promoters 59.05 Complex, B-25/1, First Floor, Okhla Industrial
2 Banks, Financial Institutions, Mutual Funds, Insurance 04.04 Bhikaji Cama Place, Area Phase II,
Companies New Delhi-110 066. New Delhi - 110020.
3 Foreign Institutional Investors, NRIs 00.21 Tel. : 011-39194000, 71194000 Phone : 011 26387320, 26387321,
4 Others 36.70 Fax : 011-46518611, 26478750 26387323
[email protected] Fax : 011 - 26387322
(xi) Dematerialisation of Shares & Liquidity: Web site : www.bhushansteel.com e-mail: [email protected]
225682768 equity shares of the Companys paid up equity
share capital has been dematerialized upto 31st March, 2016.
Trading in equity shares of the company is permitted only in 18. AUDITORS REPORT ON CORPORATE GOVERNANCE
dematerialized form as per notification issued by the Securities We have examined the compliance of conditions of Corporate
and Exchange Board of India (SEBI). Governance by Bhushan Steel Limited (the Company), for the
(xii) Outstanding GDRs/ADRs/ Warrants or any convertible year ended 31.03.2016 as per the provisions of Clause 49 of the
instruments, conversion date and likely impact on equity Listing Agreement (Listing Agreement) of the Company with stock
- Not Applicable exchanges for the period April 1, 2015 to November 30, 2015 and
as per relevant provisions of the SEBI (Listing Obligations and
(xiii) Plant locations: Disclosures Requirement) 2015 (Listing Regulations) as referred
(i) Site-IV, Sahibabad Industrial Area, Sahibabad, Distt. to in Regulation 15(2) of the Listing Regulations for the period
Ghaziabad, U.P. December 1, 2015 to March 31, 2016.
(ii) Village Nifan, Savroli and Dehvali, Taluka-Khalapure, The compliance of conditions of Corporate Governance is the
Distt. Raigad, (Near Khopoli), Maharashtra. responsibility of the management. Our examination was limited to
(iii) Meramandali, Distt. Dhenkanal, Orissa. procedures and implementation thereof, adopted by the Company for
ensuring the compliance of the conditions of Corporate Governance.
(xiv) Transfer of unclaimed amounts to Investor Education
It is neither an audit nor an expression of opinion on the financial
and Protection Fund :
statements of the Company.
The investors are advised to claim the un-encashed dividends
lying in the unpaid dividend accounts of the Company before In our opinion and to the best of our information and according to
the due date (as indicated in the Notes to the Notice) before the explanation given to us and the representation made by the
crediting the same by the Company to the Investor Education Directors and the management, we certify that the company has
and Protection Fund. complied with the conditions of Corporate Governance as stipulated
in the above-mentioned Listing Agreement/Listing Regulations, as
During the year under review the Company has credited
` 1,77,730/- to the Investor Education and Protection Fund in applicable.
respect of the Unpaid/ unclaimed dividend amount relating to On the basis of representation received from Registrars and share
the Final dividend declared in 2007-08. transfer Agents and as per the records maintained by the Company
15. CEO AND CFO CERTIFICATION which are presented to the shareholders / Investor Grievance
Committee, we state that during the year ended 31st March, 2016,
As per provision of the Regulation 33 of the SEBI (Listing Obligations
no investor grievances were pending for a period exceeding one
and Disclosure Requirements) Regulations, 2015 Chief Executive
month.
Officer and Chief Financial Officer give Quarterly and Annual
Certificate to the Board that the Financial results do not contain any We further state that such compliance is neither an assurance as to
false or misleading statement or figures and do not omit any material the future viability of the Company nor the efficiency or effectiveness
fact which may make the statements or figures contained therein with which the Management has conducted the affairs of the
misleading. Company.
16. DECLARATION REGARDING COMPLIANCE WITH THE CODE
OF CONDUCT
For Mehrotra & Mehrotra
This is to inform you that the company has adopted Code of Business
Chartered Accountants
Conduct and Ethics for its employees including the Managing
Director/ whole-time Directors/ Non-executive Directors. The said
Code is posted on the Companys website.
I confirm that the Company has in respect of the financial year ended (M. P. Mehrotra)
31st March, 2016 received from the senior management team of the
Company and the Members of the Board a declaration of compliance Place: New Delhi Partner
with the Code of Business Conduct and Ethics as applicable to them. Date: 06.08.2016 M.No. 005699

13
BHUSHAN STEEL LIMITED Annual Report 2015-16

ANNEXURE D
MANAGEMENT DISCUSSION AND ANALYSIS:
The management of Bhushan Steel Limited presents its analysis report (in their strategy, supply chains, knowledge and information, processes,
covering performance and outlook of the Company. The report has been talent and financial flows) while balancing with customization (of their
prepared in compliance with the Corporate Governance requirement products, marketing, stakeholder relationships) will emerge as sector
prescribed in the Listing Agreement. The management accepts leaders in the long term.
responsibility for the integrity and objectivity of the financial statements.
Key transformation themes for the sector
INDUSTRY STRUCTURE & DEVELOPMENTS To succeed and become more competitive in this dynamic environment,
The steel industry is divided into primary & secondary sectors. The primary steel companies need to focus on four critical themes:
sector products are billets, pallets, rounds and Hot Rolled Coils/Plates (HRC/ Rationalize excess capacity
HRP).These form raw material for the secondary sector ,which produces value
Increase market and product concentration
added items such as Angles, Channels, wire Rods, Cold Rolled Coils/sheets
(CRC/CRS) AND Galvanised Coils/Sheets. CR Sheet is a thinner sheet used Increase market competitiveness
for consumer durables like refrigerators, washing machines, automobiles, Embrace digital
bicycles, etc. CR sheets are used by the automobile and domestic appliances
industry whereas CR strips are used in manufacturing of bicycles, drums, INDIAN STEEL INDUSTRY
barrels, fabrication, furniture etc. CR Coils are mainly used for manufacturing Steel industry in India, one of the fastest growing steel producing nations,
GP/GC sheets. Bhushan Steel Limited which so far falls under secondary is passing trough stress for some time due to rising imports. Government
sector, also entered in primary sector with setting up plant at Orissa. has made efforts to check this by steps like imposing anti- dumping duty,
safeguards duty on imported steel products and policy announcement on
FLAT PRODUCTS
minimum import policy (MIP). After these steps, the pressure on the steel
Derived from slabs, this category includes plates and Hot Rolled Coils/ industry is gradually coming down. Average steel production in India is
Sheets. While plates are used for applications such as shipbuilding etc. HR less in comparison to other developed or developing countries, Indias
Steel is the most widely used variety of steel, and other downstream flat per capita consumption of total steel stood at 59 kg compared to the
products such as Cold Rolled (CR) Steel and Galvanised Steel are made world per- capita consumption of 217 kg during 2014. The main reason
from it. for higher per capital consumption of steel in developed countries due to
higher level of infrastructure and industrial development, as compared to
LONG PRODUCTS
developing countries. There has been a total growth of 8 million tone in
These products derive their name from their shape. They are made by steel production in last two years both by public and private companies.
using billets and blooms and include rods, bars, pipes, ropes and wires, This is a good indication. The demand for steel will grow as the focus
which are used largely by the housing/construction sector. on infrastructure grows. The average growth of crude steel production in
the last three years was 1.3 percent for the world on the whole and 5.3
GLOBAL STEEL INDUSTRY percent for India. The data release by the World Steel Association, which
While the global outlook for steel is mildly positive as there are increasing is reported on a calendar year basis, indicates that India has improved the
signs of momentum in some parts of the world, there are still risks to global ranking and now become the third largest producer of crude steel
global growth and a number of these evolve around China. in the world during 2015.
There is no consensus on whether China has reached peak steel Threat and Opportunities
consumption. The persistent rise in urbanization will continue to boost Indian steel makers are facing the tough time due to poor availability and
steel demand. high cost of the raw material in the domestic market and supply of cheaper
OUTLOOK material from neighboring markets. Commodity prices have rebounded
from 25 year lows hit in January 2016 and prices are up for most large
STEEL a sector being driven to transform commodities. Domestic price have surged by $ 50-60/tonne after the
The outlook for the global economy is mostly positive with growth picking minimum import price (MIP) was imposed in February 2016. Even though
up in the US, India and Southeast Asia, while several emerging markets are Chinese prices have rallied too. Thus, Higher EBITDA should aid interest
experiencing a deceleration in growth. However, the structural shift in the cober it adds.
transitioning Chinese economy could cap this momentum. Opportunities
Countries and businesses are becoming increasingly interdependent The New Industrial policy opened up the Indian Iron and Steel industry for
through trade, investment and financial system across the world. private investment by (a) removing it from the list of industries reserved
The risks and opportunities in the steel business are getting larger in scale for public sector and (b) exempting it from compulsory licensing. Imports
and impact, with their sources becoming more diverse and global. of foreign technology as well as foreign direct investment are now freely
permitted up to certain limits under an automatic route. Ministry of Steel
Real growth is in being a truly international player plays the role of a facilitator, providing broad directions and assistance to
To Survive and thrive, in a sector in constant transition, steelmakers need new and existing steel plants, in the liberalized scenario.
to transform themselves. Globalization is no longer a matter of choice, steel India 3rd largest producer of crude steel in the world (China being first
businesses long- term success depends on it. The businesses that ride the and Japan being Second), has to its credit, the capability to produce a
next wave of growth will be those that understand the trends and refine their variety of grades and that too, of international quality standards. The
strategies, business models and portfolios according to a truly global mindset. country is expected to become the 2nd largest producer of crude steel in
The steel producers must find the right balance between globalization and the world soon, provided all requirements for creation of fresh capacity are
customization. adequately met.
Opportunity to embrace globalization PERFORMANCE
While the Chinese steel sector turns introspective over the next decade The company is engaged in Steel business, which is context of Accounting
to deal with its excess capacity, pollution, low market concentration and Standard (AS)-17 issued by the institute of Chartered Accountants of
lack of profitability, this is the window of opportunity to build competitive India is considered the only business segment. The overall operational
advantage now before supersized, more efficient Chinese steelmakers performance of the company has been much satisfactory during the year.
emerge in the global market. Steel companies that embrace globalization The plants have operated optimally during the year and there were no

14
 Corporate overview Management reports financial statements

major break downs or shutdowns. Brief performance of the Company is Risk Factor Proposed Mitigation Mechanism
as follows: Market Risk
(` in Crores) Off-take Risk With its wide range of value
added products, strong customer
Particulars FY 2015-16 FY 2014-15 Variation
relationships with OEMs and
Turnover 13124.07 11735.02 1389.05
distribution network, BSL has
PBDIT & EXCEPTIONAL ITEMS 2108.20 2187.48 (79.28)
leveraged its position as one of the
Interest and Financial Charges 4582.03 2494.03 2088.00
major suppliers of flat steel products
Depreciation 1099.75 938.40 161.35
and also caters to the export market.
Exceptional Items (Loss) - 10.00 -10.00
BSL downstream facilities at
Profit Before Tax (3573.85) (1254.95) (4828.80)
Sahibabad and Khopoli are
RISKS AND CONCERNS strategically located near to major
white good markets i.e. Delhi/NCR
A detailed risk analysis for the project is presented in the table below:
and Pune respectively. These are the
Risk Factor Proposed Mitigation Mechanism major hubs where majority of the
Completion Risk automobile and consumer durable
Statutory Approvals / Clearances Company has already complied with companies are located.
BSL has its plants strategically
the requisite project clearances for
located at Meramandali and Khopoli
plant facilities at Khopoli, Sahibabad
which are located near to the
and Odisha.
major international seaports such
Further, the necessary statutory as Paradeep and Nhava Sheva
clearances applicable to the JNPT port respectively. The plant at
other projects which are under Khopoli, due to its proximity to west
implementation shall be obtained as coast of India through JawaharLal
and when required. Nehru Port enables the Company to
Operating Risk capture the export market in African
Raw Material Availability The Companys steel manufacturing / Middle East countries. Similarly,
capacity at Odisha is located in a the plant at Meramandali is located
region with rich availability of staple close to the East coast of India and
raw material i.e. iron ore, coal and enables the Company to capture
also has close proximity to ports South-East Asian and Australian
for importing raw material. Iron ore markets. This enables BSL to send its
is presently being bought by the product to the international markets
Company from suppliers located in with minimal inland transportation
Barbil, Odisha such as Orissa Mining which reduces the overall freight
Corporation, Rungta, Essel Mining charges and shipment time.
etc.. Coking coal is being imported Also, BSL has been a long term
from BHP Billiton, Australia. supplier to major renowned white
The Company currently procures goods manufacturers such as Maruti
thermal coal through linkages to Suzuki, Tata Motors, Honda Cars,
Mahanadi Coal Fields and daily Mahindra & Mahindra, Ashok Leyland
e-auctions organized by Coal India are few of the examples amongst
Limited and its subsidiaries. Automobile sector. LG, Samsung,
Power Availability Steel manufacturing process is power Videocon, Haier are the other
renowned names in the consumer
intensive and uninterrupted supply is
durable sector.
necessary for its viability. BSL has
a 110 MW captive power plant in INTERNAL CONTROL SYSTEM
Odisha, 24 MW at Sahibabad and Management firmly believes that a strong internal control system with
another 24 MW at Khopoli. BSL is in flexibility is imperative to realize Companys vision. Accordingly the
the process of expanding its capacity company always gives priority to it to achieve the following objectives:-
from 110 MW to 307 MW at Odisha. 1. Efficiency of operation
In addition to above there is 2. Accuracy and promptness of financial reporting
additional power generation capacity 3. Safeguard of Company assets
of 485 MW in Bhushan Energy an 4. Compliance with laid down policies and procedures.
associate Company. 5. Compliance with rule and regulations.
Technology Risk In order to ensure high operational
However steps are being taken to further improve internal control system.
profitability, manufacturing
facilities of BSL are updated with HUMAN RESOURCE DEVELOPMENT / INDUSTRIAL RELATIONSHIP
latest available technology and
As on 31 March 2016, the company has 5345 employees in its family
major equipments are procured
beside thousands of employees of its Contractors and suppliers.
from established and reputed
manufacturers like Siemens, SMS Industrial and employee relations with the Company remain cordial
Siemag, Paul Wurth, L&T etc. to throughout the year. It has been with the fulfillment of our market
minimize the performance risk. commitments, prompt communication, and participation in social activities
Further, BSL ensures performance and to provide challenging and safe working atmosphere in the company,
parameters of equipments through wherein every employee can develop his own strength and deliver his
liquidated damages clauses in the expertise in the interest of the Company.
agreements in order to ensure that
Board of Directors on record thanks to all of the employees for their
any failure/ malfunctioning of the
valuable contribution towards the growth of the company. Bhushan Steel
equipment is taken care by the
encourages its team members to go beyond the scope of their work,
supplier during the performance
undertake voluntary projects that enable to learn and contribute innovative
guarantee period.
ideas in meeting goals of the company.

15
BHUSHAN STEEL LIMITED Annual Report 2015-16

ANNEXURE - E
FORM NO. MR-3
SECRETARIAL AUDIT REPORT
FOR THE FINANCIAL YEAR ENDED 31ST MARCH, 2016 of Debt Securities) Regulations, 2008;

[Pursuant to Section 204(1) of the Companies Act, 2013 and rule No.9 of f) The Securities and Exchange Board of India (Registrars to an
the Companies (Appointment and Remuneration of Managerial Personnel) Issue and Share Transfer Agents) Regulations,1993 regarding
Rules, 2014] the Companies Act and dealing with client; (NOT APPLICABLE
ON THE COMPANY)
To,
The Members, g) The Securities and Exchange Board of India (Delisting of
Bhushan Steel Limited Equity Shares) Regulations, 2009; (NOT APPLICABLE ON THE
Bhushan Centre, Ground Floor, COMPANY) and
Hyatt Regency Complex, h) The Securities and Exchange Board of India (Buyback of
Bhikaji Cama Place Securities) Regulations, 1998; (NOT APPLICABLE ON THE
New Delhi 110066 COMPANY)
CIN No.: L74899DL1983PLC014942
vi Other laws applicable to the Company as per the representations
Subject: Secretarial Audit Report for the Financial Year 2015 made by the Company are:
2016.
1. The Indian Explosive Act, 1884
Dear Sir / Madam
2. The Petroleum Act, 1934
We have conducted the secretarial audit of the compliance of applicable
statutory provisions and the adherence to good corporate practices by 3. The Indian Boilers Act, 1923 and rules/regulations made
Bhushan Steel Limited (herein after called the company). Secretarial thereunder
Audit was conducted in a manner that provided us a reasonable basis for 4. The SMPV Rules, 1981
evaluating the corporate conducts/statutory compliance and expressing
our opinion thereon. 5. Bio-Medical Waste (Management and Handling) Rules,
1998
We report that:
6. Fly Ash Notification, 1999
Based on our verification of the Bhushan Steel Limiteds books, papers,
minute books, forms and returns filed and other records maintained by the 7. Manufacture, Storage and Import of Hazardous Chemical
company and also the information provided by the company, its officers, Rules 1989
agents and authorised representatives during the conduct of secretarial 8. Coal Mines (special provisions) Act, 2015
audit and as per the explanations given to us and the representations
made by the Management, we hereby report that in our opinion, the We have also examined compliance with the applicable clauses of
Company has, during the audit period covering the financial year ended the following:
on 31st March, 2016 generally complied with the statutory provisions listed (i) Secretarial Standards issued by The Institute of Company
hereunder and also that the Company has proper Board processes and Secretaries of India.
compliance mechanism in place to the extent, in the manner and subject
(ii) The Listing Agreements entered into by the company with BSE
to the reporting made hereinafter:
Limited and National Stock Exchange of India Limited.
We have examined the books, papers, minute books, forms and returns
(iii) SEBI (Listing Obligations and Disclosures Requirements)
filed and other records made available to us and maintained by Bhushan
Regulations, 2015
Steel Limited for the financial year ended on 31st March, 2016 according
to the applicable provisions of: We further report that:
i. The Companies Act, 1956 (to the extent applicable) and Companies We have not reviewed the Compliance of applicable financial laws including
Act, 2013 read with the rules made thereunder; Direct and Indirect Tax laws by the Company as the same has been subject
to review by the Statutory Auditors and others designated professionals.
ii. The Securities Contracts(Regulation) Act, 1956 (SCRA)and the rules
made thereunder; Based on the information provided by the Company, its officers and
authorized representatives during the conduct of the audit, and also on
iii. The Depositories Act, 1996 and the Regulations and Bye-laws framed
review of quarterly compliance reports taken on record by the Board of
thereunder;
Directors of the Company in my opinion, adequate systems and processes
iv. Foreign Exchange Management Act,1999 and the rules and and control mechanism exist in the Company to monitor and ensure
regulations made there under to the extent of Foreign Direct compliance of provisions of the Act, Rules, Regulations, Guidelines,
Investment, Overseas Direct Investment and External Commercial Standards, etc. mentioned above and applicable general laws like labour
Borrowings; laws, competition law and environmental laws subject to the following
v. The following Regulations and Guidelines prescribed under the observations:
Securities and Exchange Board of India Act,1992 (SEBI Act):- I. The Company has not spent any amount during the year towards
a) The Securities and Exchange Board of India (Substantial Corporate Social Responsibility.
Acquisition of Shares and Takeovers) Regulations,2011; II. Mr. Neeraj Singal, Vice Chairman and Managing Directors of the
b) The Securities and Exchange Board of India (Prohibition Company had filed an application under the consent order scheme
of Insider Trading) Regulations,1992; of SEBI for regularization of delays in disclosures made under
Regulation 13(6) of SEBI (Insider Trading) Regulations, 1992 and
c) The Securities and Exchange Board of India (Issue of this case is still pending for approval.
Capital and Disclosure Requirements)Regulations, 2009;
III. The company has not yet taken effect of value of investment made in
d) The Securities and Exchange Board of India (Employee Stock the de-allocated coal blocks amounting to ` 56289.96 Lacs (including
Option Scheme and Employee Stock Purchase Scheme) expenditure incurred ` 13546.46 Lacs and advance given ` 42743.50
Guidelines, 1999; (NOT APPLICABLE ON THE COMPANY) Lacs) and ` 666.00 Lacs in Equity shares/ advance for share capital
e) The Securities and Exchange Board of India (Issue and Listing in the associated company whose coal blocks have been de-allocated

16
 Corporate overview Management reports financial statements

pursuant to provisions of Coal Mines (Special Provisions) act 2015. This report is to be read with our letter of even date which is
given as under and form as integral part of this Report:
IV. A charge sheet has been filed in connection with a case registered by
CBI against Mr. Neeraj Singal, Vice Chairman and Managing Director To,
of the Company on 01.08.2014 under section 120(B) of Indian
The Members,
Penal Code and section 7, 12, 13(2) r/w 13(1)(d) of Prevention of
Bhushan Steel Limited
Corruption Act, 1988.
Bhushan Centre, Ground Floor,
We further report that: Hyatt Regency Complex,
Bhikaji Cama Place
The Board of Directors of the Company is duly constituted with proper
New Delhi 110066
balance of EDs, NEDs and Independent Directors. The changes in the
CIN No.: L74899DL1983PLC014942
composition of the Board of Directors that took place during the period
under review were carried out in compliance with the provisions of the Act. Our report of even date is to be read along with this letter.
Adequate notice was given to all Directors at least seven days in advance to 1. Maintenance of Statutory and other records are the responsibility of
schedule the Board Meetings. Agenda and detailed notes on agenda were the management of the company. Our responsibility is to express an
sent in advance, and a system exists for seeking and obtaining further opinion on these records based on our audit.
information and clarifications on the agenda items before the meeting and
2. We have followed the audit practices and processes as were
for meaningful participation at the meeting.
appropriate to obtain reasonable assurances about the correctness
Decisions at the Board Meetings, as represented by the management, were of the contents of the records. The verification was done on test
taken unanimously. basis to ensure that correct facts are reflected in records. We believe
that the processes and practices, we followed provide a reasonable
We further report that as represented by the Company and relied
basis for our opinion.
upon by us there are adequate systems and processes in the Company
commensurate with the size and operations of the Company to monitor and 3. We have not verified the correctness and appropriateness of financial
ensure compliance with applicable laws, rules, regulations and guidelines. records and books of Accounts of the company. We have relied on
the report of the statutory auditor in respect of the same as per the
We further report that:
guidance of the Institute of Company Secretaries of India.
1. The Company had applied to the Central Government by filing Form
4. Where ever required, we have obtained the management
MR-2 for seeking the permission for reappointment and payment of
representation about the compliance of laws, rules and regulations
remuneration to Managerial Personnel as the Company has incurred
and happening of events etc.
losses and the Central Government has granted its approval vide
letter dated 22.03.2016. 5. Company was following system of obtaining reports from various
departments to ensure compliance with applicable laws, rules,
2. Forms CG-1 were filed with the Ministry of Corporate Affairs for
regulations and guidelines.
condonation of delay in filing of Form MR-2 for reappointment and
payment of remuneration to Managerial Personnel. The Ministry of 6. The compliance of the provisions of Corporate and other applicable
Corporate Affairs had issued order for condoning the delay under laws, rules, regulations, standards is the responsibility of the
section 460(b) of the Companies Act, 2013 and accordingly the management. Our examination was limited to the verification of
Company has filed Form INC-28 with the Registrar of Companies procedures on test basis.
Delhi & Haryana on 28.06.2016.
7 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.
R.K. RAI & CO.
R.K. RAI & CO.
Company Secretaries
Company Secretaries
Place: New Delhi Rama kant Rai Proprietor FCS 6035,
Date: 06-08-2016 CP No. 7778
Place: New Delhi Rama kant Rai Proprietor FCS 6035,
Date: 06-08-2016 CP No. 7778

17
BHUSHAN STEEL LIMITED Annual Report 2015-16

ANNEXURE- F
The particulars relating to conservation of energy, technology absorption, (B) TECHNOLOGY ABSORPTION:
foreign exchange earnings and outgo, as required to be disclosed under
Efforts towards Technology Absorption:
sub-section 3(m) of Section 134 of the Companies Act, 2013 read with
Companies (Accounts) Rules 2014 are as under : The potential benefit derived from various energy conservation measures
adopted by our company. We are virtually free from using the liquid fuel
(A) CONSERVATION OF ENERGY as source of energy for production process. We are using gaseous fuel
The Steps taken or impact on conservation of Energy; which is by-product of the coke oven blast furnace and BOF (steel making
unit) at various avenues and this is continual improvement like kaizen are
The company have taken adequate measures towards conservation of as follows;
energy and reducing the specific energy consumption in our Steel Plant.
In 2015-16, we have achieved specific energy consumption 6.07 GCal/tcs As a part of replacement of Coal for generating steam in the AFBC
which will be further reduced in coming years. The some of the steps taken & WHRB boilers in power plant, we could able to replace the coal of
by our company are described in following points; 3,200 Gross Calorific Value (GCV) by Coke oven gas of 4,200 GCV to
the maximum possible extent.
The coke rate yearly average of 353 kg/thm in BF#1 and 425 kg/thm
in BF#2 achieved through good operating practices. Coke oven gas is replaced by coal for generation of power in Blast
Furnace power plant I, average generation per day around 2.0-3.0
The fuel rate yearly average of 530 kg/thm in BF#1 and 544 kg/thm MWH which effectively saved around average 1500 Mt of coal per
in BF#2 achieved through improved operating practices. month.
The PCI of Blast Furnace - 2 commissioned recently. The PCI rate Preheating of the ladles in the SMS/BOF shop by mix gas (mixture of
yearly average of 114 kg/thm in BF#1 and 144 kg/thm in BF#2realized blast furnace gas and coke oven gas with calorific value of 2200 Kcal/
with further optimization of energy consumption in Blast Furnaces's. Nm3), which effectively saves the considerable amount of energy in
BSL has set up two gas fired boilers of capacity 60 TPH and 125 the form of Furnace oil/HSD.
TPH wherein the Blast Furnace Gas produced from Blast Furnace's Reheating furnace of rolling mill with capacity of 2 x 300 TPH we
(BF - 1 & BF -2) will be used as fuel for generation of power and could able to run the same on mix gas i.e. Coke oven & Blast furnace
process steam foroperation of Steel Plant. These boilers will enable gas, this saves effectively 200,000 Kcal/Mt of energy required for
stopping venting of blast furnace gases and reduce the pollution load. rolling as a replacement of furnace oil as the liquid fuel in the rolling
This in turn generate power and process steam for the operations of mill
Integrated Steel Plant.
Coke oven gas is used in Calcination Plant for calcination of lime/
With these Gas fired Boilers, the power situation of the Integrated dolomite which could save us 800,000Kcal/Mt of energy. The
Steel Plant will be stable and there will be reduction of coal usages to production of fluxes (Lime/Dololime) by using coke oven gas. The
the extent of approx. 400000 tons of coals annually. calcination process has improved the product quality with cost savings
The company has started the process of installing LED lamps and 20 by using rich calorific value gas.
% conventional lamps of steel plant replaced by LED lamps. Weintend Hot direct charging of the slabs from the continuous caster to
to install LED lamps in new installations and change existing HPSV Reheating Furnace of Hot Strip Mill. This reduces the effective energy
lamps and fittings with energy efficient LED lamps within the plant consumed in rolling, we could able to achieve more than 70% of our
premises in next three to four years time. production of hot rolled coils by hot direct charging method which
The company has started the process of installing solar lighting system reduces the energy consumption by tune of 200,000 Kcal/Mt.
in common areas of Residential Township of Angul Plant. Usage of mix gas for preheating of the hot blast stove of blast furnace,
Efficient usage of In-plant wastes such as GCP Sludge, Fume alternative fuel for cold rolling mill and raw material drying purpose.
Extraction dust, Mill Scale and BOF Filter Cake through Base Blending Usage of mainly blast furnace gas(BFG) with 7 % Coke Oven Gas
Station. (COG) for internal heating of the Coke Oven Battery - 2.
Pre Heater for heating of combustion air and fuel gases in hot blast ESP of Sinter plant will be OFF automatically when inlet temp <100
stoves of both the Blast furnaces. deg after plant stoppage. After modification saving of approx. 300 KW
100% utilization of blast furnace gases, coke oven gas & converter of power /Hr. Plant de dusting ESP stops after Plant stop>1 hour.
gas to meet the fuel requirement of steel plant as well generate The benefits derived like product improvement, cost reduction,
power for captive usages. product development or import substitution;
The steps taken by the Company for utilising alternate source of Product Development Initiative in Angul Plant;
Energy
Bhushan Steel has tied up with IIT Mumbai for optimization of High
The cleaner and energy efficient technologies with alternate source of Carbon, 75Ni8, 75Cr1 & C76 steel grade w.r.t end applications of
Energy have been adopted in various existing technological units. We the product after cold rolling and heat-treatment. IITM has started
have implemented the Best Available Technologies (BAT) for iron and technical interaction with BSL Khopoli & Odisha and initiated action
steel manufacturing to minimize the adverse impact on environment and plan to proceed accordingly. Successfully Developed the IF grade
surrounding. It's a new Integrated Steel Plant, the Phase - 1 commissioned steel for auto application as inner and outer panel in various sizes of
during the year 2010 and Phase - 2 commissioned during the year 2014. 3.2 x 1260 1700 mm and 4.0 x 1260 1700 mm.Developed Boron
The Capital Investment on Energy Conservation equipments treated Low carbon Steel for use in higher cold reduction at Cold
Rolling Mill without compromising productivity by rolling the relatively
Bhushan Steel Limited has adopted cleaner and energy efficient technologies
thicker gauge strip in HSM. This has created niche in the market for
while establishing its Steel Plants. Due to adoption of latest technologies in
the developed grades with selling at premium rates.
its existing plants, no separate capital investment was required to be made
on Energy Conservation Equipments in present scenario. New steel grade developed in last year;
IF Steel for Automotive industries.
IF HS-340.

18
 Corporate overview Management reports financial statements

BSK-46 for Auto Component

API 5L X-80 for high strength line pipe applications.
API 5CT grades like J55 & K55
The R&D infrastructure developed in Angul Plant with following facilities;
Metallurgical Micro-Scope of Germany make, model Leica-DM-6000 to investigate the micro-structure, grain size and inclusion rating in finished
product.
Latest Micro-hardness testing machine in Lab for measuring the hardness of different phases of steel.
Tensile testing M/C of 150KN, 600KN & 1000KN. High temperature (up to 900C) tensile testing provision in 600KN machine.
DWTT Machine to investigate the % Shear Area of API grade Line pipe steel up to X80 grade to ascertain toughness in the material.
Pendulum Impact Testing Machine with Cooling Chamber (up to -80C) and Broaching Machine for notch making and profile projector for measuring
accuracy of notch angle and depth.
New advanced Hardness Testing Machines like universal hardness testing machine, Rockwell, Vicker, Brinell are available to measure the hardness of
wide ranged product.
Direct Reading Emission Spectrometer for heat and product analysis.
XRF, XRD equipments are available for composition analysis.
Leco C & S Analyzer and Leco O, H &N Analyzer.
Development of New Products / Hot Rolled Steel Grade
There are various new steel grades taken as developmental grades as follows,
IF-Steel, IFHS, Low Carbon B treated Steel, Medium Carbon with High Mn B treated Steel, BSK46, Boiler grade Steel, API grade Steel, HSLA Steel in
Low thickness Strip with minimum YS 355Mpa, and HSLA Cu-bearing Steel with minimum Tensile 540Mpa for Indian Railways.
In case of imported technology (imported during the last three years reckoned from beginning of the financial year)
The detail of the plant equipments imported during last three years are as follows:

Sl. No. Description Original Year of Expansion Year of Existing Name of

3.1 Mtpa Instal./ 2.5 Mtpa Instal./ 5.6 Mtpa Technology
Import Import / Equipment
Supplier
1 Direct Reduction 10X500 tpd coal April'07 -'12 April'07 -'12 10 X 500 tpd Lurgi
Iron (DRI) based DR Kilns TGS
Kirloskar
ABB
1A Briquetting Plant 100 tph 100 tph KoppernGmbh
2 Coke Oven Plant 2X 64 Oven (4.3m) April'10 1 X 74 Oven (7.6 m) June'14 2 X 64 Oven (4.3 m) China Shougang
1 X 74 Oven (7.6 m) Paul Wurth
HudecGmbh
Schalke
KIC Ltd.
L&T
3 Sinter Plant 1 x 177 m2 April'10 2 x 204 m2 Oct'13 1 x 177 m2 China Shougang
2 x 204 m2 Outotec
Siemens
L&T
4 Blast Furnace 1 x 1681m3 April'10 1 x 3814m3 May'14 1 x 1681m3 DanieliCorus
1 x 3814m3 Paul Wurth
SiemensL&T
Dalian Huarui
Heavy Industry
5 Pre Treatment & 1 x 60 t EAF 2 x 180 t HMDS Oct'13 1 x 60 t EAF SMS Siemag
6 x 15 t ( IF ) 6 x 15 t ( IF ) Siemens
Primary Steel 2 x 180 t BOF 4 x 180 t HMDS Miwenti
making 2 x 180 t HMDS 2 x ARS (On Line) 1 x 180 t CONARC Ecomaster
1 x 180 t CONARC 2 x 180 t BOF with 2
ARS on line
6 Secondary Steel 1 x 60 t LF April'10 Sept'13 1 x 60 t LF Danieli
Making/Refining 1 x 15 t LF 1x 180 t LF 1 x 15 t LF SMS Siemag
1 x 60 t VD/VOD 1x 180 t CAS-OB 1 x 60 t VD/VOD Siemens

2 x 180 t LF 3 x 180 t LF,

1 x 180 t RH-OB 1 x 180 t RH-OB
1 x 180 t CAS-OB

19
BHUSHAN STEEL LIMITED Annual Report 2015-16

Sl. No. Description Original Year of Expansion Year of Existing Name of

3.1 Mtpa Instal./ 2.5 Mtpa Instal./ 5.6 Mtpa Technology
Import Import / Equipment
Supplier
7 Continuous Casting 1x 2 str + April'10 2 x 1 str S C May'13 1 x 2 + 1 x 3 strand SMS Siemag
Plant (Slab Caster) 1x 1str Billet Caster (1680mm) strand Billet Caster Siemens
1 x 1str Slab Caster 1x 1str SC (1300mm) SMS Logistic
(1300mm)
1 x 1 str Slab caster 3 x 1 str SC (1680mm)
(1680mm)
8 Hot Strip Mill (HSM) 2 RHF April'10 1 RHF Under 3 RHF SMS Siemag
Roll Shop 1 Roughing + 1 Roughing + Implementation, 2 Roughing +7 SMS Logistic
Slitting & CTL 6 Finishing str 1 Finishing str July'15 Finishing Siemens
+2 Down coiler +1 Down coiler +3 Down coiler Tenova
Waldrich Siegen
FIMI
9 Lime &Dolo Plant 4X 300tpd April'10 1X600 tpd March'16 4 X 300tpd Qualical
2 X 600 tpd Siemens
10 Power Plant 1 X 33MW 1X 165 MW ( 3X 275 Nov'13 1 X 33MW ( 1,2,9.10 BHEL
(1,2,9.10 -54.5tph tph CFBC) -54.5tph each WHRB) Siemens
each WHRB) 1X 14 MW ( TRT) 1X 77 MW ( 3 to 8 IGT
1X 77 MW (3 to 8 WHRB) +120t AFBC ABB
WHRB) +120t AFBC 12MW + 20 MW ( 3X Salzer Pumps
12MW + 20 MW 75t AFBC) KSB Pumps
(3X 75t AFBC) 1X 165 MW (3X 275 Adlec
tph CFBC) Kirloskar
1X 14 MW ( TRT) Crompton Greaves
Universal Cables
11 CRM (With HR Slitting Line Dec'13 CMI FPE
Annealing, Pickling Line SMS Siemeg
Galvanizing,Colour 6 Hi CRM Hypertherm
coating facilites) (1x1020mm 0.18Mtpa ABB
1x1250mm 0.22Mtpa Ebner
Capacity 0.6 MTPA 1x1350mm 0.25Mtpa) Pomini
Batch Annealing Waldrich Siegen
Furnace -18 Bases Sarclad
Electrolytic Cleaning FIMI
Line Azax
Skin Pass Mill
2 nos. Galvanizing
Line
Colour Coating Line
Slitting Lines
Rewing cum Trimming
Line
Cut To Length Line
Tension Leveling cum
Rewinding Line
Corrugation M/c
H2 Generation Plant
ARP
ETP
ARP, ETP etc
It may be noted that the imported technology have been fully absorbed.
Expenditure incurred on Research and Development
Research and Development (R&D) activities at Bhushan Steel Limited are focused mainly on Process Improvements, Energy Conservation, Waste Utilization,
Product Development and Improvement in quality of Finished Goods. The cost reduction through process competence is under our key focus area of R&D.
We are now changing the levers of improvement towards process optimization and new product development with our in-depth understanding about the
raw material and end application of our product. In principle, the R&D initiative is part of our regular investment considering sustainable production with
good quality products.
FOREIGN EXCHANGE EARNINGS AND OUTGO

Total Foreign Exchange used and earned Used : ` 4741.56 Cr.

Earned : ` 1198.33 Cr.

20
 Corporate overview Management reports financial statements

ANNEXURE- G
Form No. MGT-9
EXTRACT OF ANNUAL RETURN
as on the financial year ended on March 31, 2016
[Pursuant to section 92(3) of the Companies Act, 2013 and rule 12(1) of the Companies (Management and Administration) Rules, 2014]
I. REGISTRATION AND OTHER DETAILS:

i CIN L74899DL1983PLC014942
ii Registration Date 08.01.1983
iii Name of the Company Bhushan Steel Limited
iv Category / Sub-Category of the Company Company limited by shares/Indian Non-Government company
v Address of the Registered office and contact details Bhushan Centre, Ground Floor, Hyatt Regency Complex, BhikajiCama Place,
New Delhi-110066
Tel. : 011-39194000, 71194000
Fax : 011-46518611, 26478750
[email protected]
Web site : www.bhushansteel.com
vi Whether listed company Yes / No Yes. Listed in BSE & NSE
vii Name, Address and Contact details of Registrar and Transfer RCMC Share Registry Pvt. Ltd. (Unit : BHUSHAN STEEL LIMITED)
Agent, if any B-25/1, First Floor,
Okhla Industrial Area Phase II,
New Delhi - 110020.
Phone : 011 26387320, 26387321, 26387323
Fax : 011 - 26387322
e-mail: [email protected]

II. PRINCIPAL BUSINESS ACTIVITIES OF THE COMPANY

All the business activities contributing 10 % or more of the total turnover of the company shall be stated:-
Sr. Name and Description of main NIC Code of the Product/ service % to total turnover of the company
No. products / services
1. Metal 241-Manufacture of Basic Iron & Steel, 100%

III. PARTICULARS OF HOLDING, SUBSIDIARY AND ASSOCIATE COMPANIES -

S. NAME AND ADDRESS OF THE COMPANY CIN/GLN HOLDING/ % of shares Applicable

SUBSIDIARY/ held Section
N0
ASSOCIATE
1 Bhushan Steel (Orissa) Ltd. U27100DL2010PLC202028 SUBSIDIARY 100.00 2(87)(ii)
2 Bhushan Steel Madhya Bharat Ltd. U27100DL2010PLC202026 SUBSIDIARY 100.00 2(87)(ii)
3 Bhushan (South) Ltd. U27100DL2010PLC202027 SUBSIDIARY 100.00 2(87)(ii)
4 BhushanSteel Australia Pty Ltd. NA FOREIGN SUBSIDIARY 90.97 2(87)(ii)
5 Bhushan Energy Limited U40105DL2005PLC140748 Associate 47.71 2(6)
6 Bhushan Capital & Credit Services Private Limited U74899DL1993PTC054636 Associate 42.58 2(6)
7 Jawahar Credit & Holding s Private Limited U74899DL1993PTC054635 Associate 39.89 2(6)

IV. SHARE HOLDING PATTERN (Equity Share Capital Breakup as percentage of Total Equity)
a) Category-wise Share Holding
Category of No. of Shares held at the beginning No. of Shares held at the end of the % Change during
Shareholders of the year year the year
As on 31/03/2015 As on 31/03/2016
Demat Physical Total % of Total Demat Physical Total % of Total
Shares Shares
A. Promoters
(1) Indian
a) Individual/ HUF 101852018 0 101852018 44.96 101852018 0 101852018 44.96 0.000
b) C
 entral Govt State 0 0 0 0.00 0 0 0 0.00
Govt (s)
c) Bodies Corp. 32010805 0 32010805 14.13 31901188 0 31901188 14.08 -0.048
d) Banks/FI 0 0 0 0.00 0 0 0 0.00
e) Others (trusts) 0 0 0 0.00 0 0 0 0.00
Sub-total (A) (1):- 133862823 0 133862823 59.10 133753206 0 133753206 59.05 -0.048

21
BHUSHAN STEEL LIMITED Annual Report 2015-16

Category of No. of Shares held at the beginning No. of Shares held at the end of the % Change during
Shareholders of the year year the year
As on 31/03/2015 As on 31/03/2016
Demat Physical Total % of Total Demat Physical Total % of Total
Shares Shares
(2) Foreign 0.00
a) NRIs Individuals 0 0 0 0.00 0 0 0 0.00
b) Other Individuals 0 0 0 0.00 0 0 0 0.00
c) Bodies Corp. 0 0 0 0.00 0 0 0 0.00
d) Banks / FI 0 0 0 0.00 0 0 0 0.00
e) Any Other.... 0 0 0 0.00 0 0 0 0.00
Sub-total(A)(2):- 0 0 0 0.00 0 0 0 0.00 0.000
Total shareholding 133862823 0 133862823 59.10 133753206 0 133753206 59.05 -0.048
of Promoter (A) =
(A)(1)+(A)(2)
B. Public 0.00 0.000
Shareholding
1. Institutions 0.00 0.000
a) Mutual Funds 1269 4000 5269 0.00 1356 4000 5356 0.00 0.000
b) Banks/FI 27300 4000 31300 0.01 57798 4000 61798 0.03 0.013
c) C
 entral Govt./ 0 0 0 0.00 0 0 0 0.00 0.000
State Govt.
d) V
 enture Capital 0 0 0 0.00 0 0 0 0.00 0.000
Funds
e) I nsurance 9016484 0 9016484 3.98 9089012 0 9089012 4.01 0.032
Companies
f) F
 oreign 3235202 0 3235202 1.43 21222 0 21222 0.01 -1.419
Institutional
Investors
g) F
 oreign Venture 0 0 0 0.00 0 0 0 0.00 0.000
Capital Investors
h) Q
 ualified Foreign 0 0 0 0.00 0 0 0 0.00 0.000
Investors
i) A
 ny Other 0 0 0 0.00 0 0 0 0.00 0.000
(Specify) -
Foreign Financial
Institution
j) A
 ny Others 0 0 0 0.00 0 0 0 0.00 0.000
(Specify)
Limited Liability
Partnership
Sub-total (B)(1):- 12280255 8000 12288255 5.42 9169388 8000 9177388 4.05 -1.373
2. Non-
Institutions
a) Bodies Corp. 63228388 30805 63259193 27.93 62686327 30805 62717132 27.69 -0.239
b) Individuals
i) I ndividual 9982207 737086 10719293 4.73 15347610 724173 16071783 7.10 2.363
shareholders
holding nominal
share capital upto
` 1 lakh
ii) I ndividual 4729930 0 4729930 2.09 3593085 0 3593085 1.59 -0.502
shareholders
holding nominal
share capital in
excess of ` 1 lakh
C) O
 thers : i)Clearing 1171193 0 1171193 0.52 758324 0 758324 0.33 -0.182
Members
ii) Non Residents 250559 69000 319559 0.14 374825 69000 443825 0.20 0.055

22
 Corporate overview Management reports financial statements

Category of No. of Shares held at the beginning No. of Shares held at the end of the % Change during
Shareholders of the year year the year
As on 31/03/2015 As on 31/03/2016
Demat Physical Total % of Total Demat Physical Total % of Total
Shares Shares
iii) Foreign Company 0 0 0 0.00 0 0 0 0.00 0.000
iv)Trusts 164500 0 164500 0.07 3 0 3 0.00 -0.073
Sub-total (B)(2):- 79526777 836891 80363668 35.48 82760174 823978 83584152 36.90 1.422
Total Public 91807032 844891 92651923 40.90 91929562 831978 92761540 40.95 0.048
Shareholding (B)
= (B)(1) + (B)(2)

C. Shares held by 0 0 0 0.00 0 0 0 0.00

Custodian for
GDRs & ADRs
Grand Total 225669855 844891 226514746 100.00 225682768 831978 226514746 100.00 0.000
(A+B+C)

b) Shareholding of Promoters

Sl Shareholders Name Shareholding at the beginning of the Shareholding at the end of the
No. year 31/03/2015 year31/03/2016
No. of % of total % of total No. of % of total % of total % change in
Shares Shares of the Shares Shares Shares of the Shares shareholding
company Pledged/ company Pledged/ during the
encumbered encumbered year
to total to total
shares shares
1 NEERAJ SINGAL 51480927 22.73 43341006 51480927 22.73 43202510 0.00
2 BHUSHAN 32010805 14.13 4356419 31901188 14.08 4108305 -0.05
INFRASTRUCTURE PVT.
LTD.
3 RITU SINGAL 6020309 2.66 4830311 6020309 2.66 4830311 0.00
4 PUSHPA GARG 1006150 0.44 0 1006150 0.44 0 0.00
5 BRIJ BHUSHAN SINGAL 41103391 18.15 38428439 41103391 18.15 38428439 0.00
6 BRIJ BHUSHAN 10666 0.00 0 10666 0.00 0 0.00
SINGHAL (HUF)
7 AISHWARYA SINGAL 2230575 0.98 0 2230575 0.98 1705729 0.00
TOTAL 133862823 59.10 90956175 133753206 59.05 92275294 -0.05
c) Change in Promoters Shareholding (please specify, if there is no change)

Sr. Particulars Shareholding at the beginning Cumulative Shareholding

No. of the year 01/04/2015 during the year 31/03/2016
Status No. of shares % of total No. of shares % of total
shares of the shares of the
company company
1 NEERAJ SINGAL
At the beginning of the year 51480927 22.73 51480927 22.73
At the end of the year 51480927 22.73
2 BRIJ BHUSHAN SINGAL
At the beginning of the year 41103391 18.15 41103391 18.15
At the end of the year 41103391 18.15
3 BHUSHAN INFRASTRUCTURE PRIVATE LIMITED
At the beginning of the year 32010805 14.13 32010805 14.13
21/04/2015 Transfer -68500 -0.03 31942305 14.10
22/04/2015 Transfer -41117 -0.02 31901188 14.08
At the end of the year 31901188 14.08
4 RITU SINGAL
At the beginning of the year 6020309 2.66 6020309 2.66
At the end of the year 6020309 2.66

23
BHUSHAN STEEL LIMITED Annual Report 2015-16

5 AISHWARYA SINGAL
At the beginning of the year 2230575 0.98 2230575 0.98
At the end of the year 2230575 0.98
6 PUSHPA GARG
At the beginning of the year 1006150 0.44 1006150 0.44
At the end of the year 1006150 0.44
7 BRIJ BHUSHAN SINGHAL (HUF)
At the beginning of the year 10666 0 10666 0
At the end of the year 10666 0

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

Sl For Each of the Top 10 Shareholders Shareholding at the beginning Cumulative Shareholding
No. of the year (01/04/2015) during the year (31/03/2016)
Status No. of Shares % of total No. of Shares % of total
shares of the shares of the
company company
1 ECL FINANCE LIMITED
At the beginning of the year 01/04/2015 10000000 4.42 10000000 4.42
At the end of the year 31/03/2016 10000000 4.42
2 MOONSTAR SECURITIES TRADING & FINANCE
COMPANYPVT. LTD.
At the beginning of the year 01/04/2015 9664565 4.27 9664565 4.27
At the end of the year 31/03/2016 9664565 4.27
3 LIFE INSURANCE CORPORATION OF INDIA
At the beginning of the year 01/04/2015 8014898 3.54 8014898 3.54
At the end of the year 31/03/2016 8014898 3.54
4 ARCHANA MITTAL
At the beginning of the year 01/04/2015 4073680 1.8 4073680 1.8
03/04/2015 Transfer -251832 -0.11 3821848 1.69
10/04/2015 Transfer -661848 -0.29 3160000 1.4
24/04/2015 Transfer -200000 -0.09 2960000 1.31
At the end of the year 31/03/2016 2960000 1.31
5 FAMILY CREDIT LIMITED
At the beginning of the year 01/04/2015 3497500 1.54 3497500 1.54
At the end of the year 31/03/2016 3497500 1.54
6 L AND T FINCORP LIMITED
At the beginning of the year 01/04/2015 2739981 1.21 2739981 1.21
At the end of the year 31/03/2016 2739981 1.21
7 TERRIFIC STEEL PVT LTD
At the beginning of the year 01/04/2015 2119505 0.94 2119505 0.94
23/10/2015 Transfer 29933 0.01 2149438 0.95
13/11/2015 Transfer 29685 0.01 2179123 0.96
20/11/2015 Transfer 25 0 2179148 0.96
27/11/2015 Transfer 2 0 2179150 0.96
04/12/2015 Transfer 6999 0 2186149 0.97
01/01/2016 Transfer 280 0 2186429 0.97
08/01/2016 Transfer 2 0 2186431 0.97
22/01/2016 Transfer 74 0 2186505 0.97
At the end of the year 31/03/2016 2186505 0.97
8 PROMINENT HOSPITALS PRIVATE LIMITED
At the beginning of the year 01/04/2015 2111195 0.93 2111195 0.93
At the end of the year 31/03/2016 2111195 0.93
9 DELIGHT RESORTS PVT LTD
At the beginning of the year 01/04/2015 2102120 0.93 2102120 0.93
At the end of the year 31/03/2016 2102120 0.93
10 TITANIC DEVELOPERS AND BUILDERS PVT LTD
At the beginning of the year 01/04/2015 2100000 0.93 2100000 0.93
At the end of the year 31/03/2016 2100000 0.93
11 SUPREME PLACEMENT SERVICES PVT LTD
At the beginning of the year 01/04/2015 2099650 0.93 2099650 0.93

24
 Corporate overview Management reports financial statements

Sl For Each of the Top 10 Shareholders Shareholding at the beginning Cumulative Shareholding
No. of the year (01/04/2015) during the year (31/03/2016)
Status No. of Shares % of total No. of Shares % of total
shares of the shares of the
company company
21/08/2015 Transfer 35000 0.02 2134650 0.94
16/10/2015 Transfer 30363 0.01 2165013 0.96
22/01/2016 Transfer 82 0 2165095 0.96
At the end of the year 31/03/2016 2165095 0.96
12 DEPENDABLE TRANSPORT PVT LTD
At the beginning of the year 01/04/2015 2089060 0.92 2089060 0.92
22/01/2016 Transfer 43000 0.02 2132060 0.94
19/02/2016 Transfer 35000 0.02 2167060 0.96
At the end of the year 31/03/2016 2167060 0.96
13 VENUS RECRUITER PRIVATE LIMITED
At the beginning of the year 01/04/2015 2088073 0.92 2088073 0.92
30/10/2015 Transfer 15000 0.01 2103073 0.93
13/11/2015 Transfer 33957 0.01 2137030 0.94
20/11/2015 Transfer 3 0 2137033 0.94
04/12/2015 Transfer 8002 0 2145035 0.95
22/01/2016 Transfer 38 0 2145073 0.95
At the end of the year 31/03/2016 2145073 0.95
14 GOLDEN JOB FINDER PVT LTD
At the beginning of the year 01/04/2015 2085920 0.92 2085920 0.92
21/08/2015 Transfer 15000 0.01 2100920 0.93
16/10/2015 Transfer 53900 0.02 2154820 0.95
27/11/2015 Transfer 100 0 2154920 0.95
At the end of the year 31/03/2016 2154920 0.95
e) Shareholding of Directors and Key Managerial Personnel:

Sr. Particulars Shareholding at the beginning Cumulative Shareholding

No. of the year 01/04/2015 during the year 31/03/2016
Status No. of shares % of total No. of shares % of total
shares of the shares of the
company company
1 NEERAJ SINGAL
At the beginning of the year 51480927 22.73 51480927 22.73
At the end of the year 51480927 22.73
2 BRIJ BHUSHAN SINGAL
At the beginning of the year 41103391 18.15 41103391 18.15
At the end of the year 41103391 18.15
3 P. K. AGGARWAL
At the beginning of the year 444 0.00 444 0.00
At the end of the year 444 0.00
4 O. P. DAVRA
At the beginning of the year 1112 0.00 1112 0.00
At the end of the year 1112 0.00

25
BHUSHAN STEEL LIMITED Annual Report 2015-16

V. INDEBTEDNESS
Indebtedness of the Company including interest outstanding/accrued but notdue for payment
 ` In Cr.
Secured Loans Unsecured Deposits Total
excluding deposits Loans Indebtedness
Indebtedness at the beginning of the financial year
i) Principal Amount 38425 654 0 39079
ii) Interest due but not paid 450 0 0 450
iii) Interest accrued but not due 339 1 0 340
Total (i+ii+iii) 39214 655 0 39869
Change in Indebtedness during the financial year
Addition 6962 15 0 6977
Reduction 1292 277 0 1569
Net Change 5670 -262 0 5408
Indebtedness at the end of the financial year
i) Principal Amount 44095 392 0 44487
ii) Interest due but not paid 1445 2 0 1447
iii) Interest accrued but not due 127 1 0 128
Total (i+ii+iii) 45667 395 0 46062
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 Total Amount

Mr.NeerajSingal Mr.NittinJohari Mr. Rahul Mr. P.K.
Sen Gupta Agarwal
1 Gross salary
(a) Salary as per provisions contained 12000000 13838462 9530769 9530769 44900000
in section 17(1) of the Income-tax
Act, 1961
(b) Value of perquisites u/s 17(2)
Income-tax Act, 1961
(c) Profits in lieu of salary under 2606934 39600 39600 39600 2725734
section 17(3) Income-tax Act, 1961
2. Stock Option - - - - -
3. Sweat Equity - - - - -
4. Commission - - - - -
- as % of profit
- others, specify
5. Others, please specify-PF - - - 21600 21600
Total (A) 14606934 13878062 9570369 9591969 47647334
Ceiling as per the Act NIL NIL NIL NIL NIL
B. Remuneration to other directors:
Sl. Particulars of Name of Directors Total
no. Remuneration Amount
Mr. B. B. Mr. M. V. Mr. Ashwani Mr. Rakesh Mr. Sahil Mr. Kapil Mr. Pradeeep Mr. Pankaj
Tandon Suryanarayana Kumar Singhal Goyal Vaish Patni Sharma
1 3. Independent
Directors

F
 ee for attending 200000 240000 180000 100000 80000 100000 20000 100000 1020000
board / committee
meetings
Commission 0 0 0 0 0 0 0 0 0

O thers, please 0 0 0 0 0 0 0 0 0
specify
Total (1) 200000 240000 180000 100000 80000 100000 20000 100000 1020000

26
 Corporate overview Management reports financial statements

Mr. B. B.Singal
4. O
 ther Non-
Executive
Directors

880000 880000
F
 ee for attending
board / committee
meetings 0 0
Commission 0 0
O
 thers, please
specify
Total (2) 880000 880000
Total (B)=(1+2)
Total Managerial 1900000
Remuneration
Overall Ceiling as NIL NIL NIL NIL NIL NIL NIL NIL NIL
per the Act
c. REMUNERATION TO KEY MANAGERIAL PERSONNEL OTHER THAN MD/MANAGER/WTD

Sl. no. Particulars of Remuneration Key Managerial Personnel

Company CFO Total
Secretary
1 Gross salary
(a) Salary as per provisions contained in section 17(1) of the 2601538 13838462 16440000
Income-tax Act, 1961
(b) Value of perquisites u/s 17(2) Income-tax Act, 1961
(c) Profits in lieu of salary under section 17(3) Income-tax
Act, 1961
21600 39600 61200
2 Stock Option - - -
3 Sweat Equity - - -
4 Commission - - -
- as % of profit
- others, specify
5 Others, please specify - - -
Total 2623138 13878062 16501200

VII. PENALTIES / PUNISHMENT/ COMPOUNDING OF OFFENCES:

Type Section of the Brief Description Details of Penalty Authority [RD / Appeal made, if any
Companies Act / Punishment/ NCLT / COURT]
(give Details
Compounding fees
imposed
A. Company
Penalty
Punishment
Compounding
B. Directors
NIL
Penalty
Punishment
Compounding
C. Other Officers In Default
Penalty
Punishment
Compounding

27
BHUSHAN STEEL LIMITED Annual Report 2015-16

ANNEXURE- H
DETAILS PERTAINING TO REMUNERATION AS REQUIRED UNDER SECTION 197(12) OF THE COMPANIES ACT, 2013 READ WITH RULE
5(1) OF THE COMPANIES (APPOINTMENT AND REMUNERATION OF MANAGERIAL PERSONNEL) Amendment RULES, 2016
(i) The percentage increase in remuneration of each Director, Chief Financial Officer and Company Secretary during the financial year 2015-16, ratio of
the remuneration of each Director to the median remuneration of the employees of the Company for the financial year 2015-16:

S r . No. Name of Director/KMP and Remuneration of Director/ % increase in Ratio of remuneration

Designation KMP for financial year Remuneration in the of each Director/to
2015-16 (` in Crore) Financial Year 2015-16 median remuneration of
employees
1 Mr. Neeraj Singal 1.46 0.97 43:1
Vice Chairman & Managing Director
2 Mr. Nittin Johari 1.39 21.32 41:1
Whole- time Director (Finance) cum
Chief Financial Officer
3 Mr. Rahul Sen Gupta 0.96 26.93 28:1
Whole- time Director (Technical)
4 Mr. P. K. Aggarwal 0.96 26.94 29:1
Whole- time Director (Commercial)
5 Mr. O. P. Davra 0.26 29.12 8:1
Company Secretary
(ii) the median remuneration of the employees of the company for the financial year
- The Median Remuneration of the employees of the Company is ` 3.36 Lacs.
(iii) the percentage increase in the median remuneration of employees in the financial year;
- The percentage increase in the median remuneration of employees is 57.01% .
(iv) the number of permanent employees on the rolls of company;
- The number of Permanent employees on the rolls of the Company as on 31st March, 2016 is 5345.
(viii) average percentile increase already made in the salaries of employees other than the managerial personnel in the last financial year and its comparison
with the percentile increase in the managerial remuneration and justification thereof and point out if there are any exceptional circumstances for
increase in the managerial remuneration;
- Considering the Company performance, Key Managerial Personnel were given the increment commensurate with peer
industries. Thus the increase in the salary should be seen as salary correction. Whereas other employees were given an
average salary increase of 5.56% to match inflation and to keep them motivated.
(x) the key parameters for any variable component of remuneration availed by the directors;
- No variable component of remuneration was paid to the directors.
(xii) affirmation that the remuneration is as per the remuneration policy of the company.
- It is hereby affirmed that the remuneration paid during the year ended 31st March 2016 is as per the Remuneration Policy of
the Company.
DETAILS PERTAINING TO REMUNERATION AS REQUIRED UNDER SECTION 197(12) OF THE COMPANIES ACT, 2013 READ WITH RULE
5(2) AND 5(3) OF THE COMPANIES (APPOINTMENT AND REMUNERATION OF MANAGERIAL PERSONNEL) Amendment RULES, 2016

SR. NAME DESIGNATION REMUNERATION QUALIFICATION AGE DATE OF EXP.

NATURE OF LAST
NO. (`) COMMENCEMENT DUTIES EMPLOYMENT
OF EMPLOYMENT
1 2 3 4 5 6 7 8 9 10
EMPLOYED THROUGHOUT THE YEAR AND WAS IN RECEIPT OF REMUNERATION OF NOT LESS THAN ` 1,02,00,000 PER ANNUM.
1 SH. NEERAJ VICE CHAIRMAN 14606934 GRADUATE 48 29 1.04.1992 OPERATIONS EXECUTIVE
SINGAL & MANAGING AND DAY TO DAY DIRECTOR
DIRECTOR MANAGEMENT WITH BHUSHAN
METALLICS LTD.
2 SH. NITTIN DIRECTOR 13878062 M.COM., F.C.A.. 53 31 6.01.1995 CORPORATE FINANCE
JOHARI FINANCE FINANCING AND CONTROLLER
OTHER RELATED WITH WIMCO
MATTERS LTD.
EMPLOYED for part of THE YEAR AND WAS IN RECEIPT OF REMUNERATION OF NOT LESS THAN ` 8,50,000 PER Month.

NIL
Notes:
1. Remuneration as shown above includes salary, allowances, medical expenses, house rent, taxable value of perquisites but excludes gratuity
provision.
2. Sh. Neeraj Singal is a relative of Sh. B. B. Singal, Non-Executive Chairman.
3. Sh. Neeraj Singal holds 22.73% of paid up Equity Share Capital of the company.
4. Nature of employment of Sh. Neeraj Singal is contractual.

28
 Corporate overview Management reports financial statements

INDEPENDENT AUDITORS REPORT

To No effect has been taken on the value of investment made by the
company in the de-allocated coal blocks amounting to `56289.96 lacs
The Members of Bhushan Steel Limited (including expenditure incurred of `13546.46 lacs and advance given of
Report on the Standalone Financial Statements `42743.50 lacs) and `669.25 lacs in Equity Shares/advance for share capital
in the associate company, whose coal blocks have been de-allocated. In
We have audited the accompanying standalone financial statements the opinion of the management, the company / associated company will
of Bhushan Steel Ltd. (the Company), which comprise the Balance receive back the payments / expenditure paid / made, including borrowing
Sheet as at March 31, 2016, the Statement of Profit and Loss and Cash cost and other incidental expenditure, relating to de-allocated coal blocks.
Flow Statement for the year then ended and a summary of significant The company has filed its claim for compensation during the year with
accounting policies and other explanatory information. Government of India, Ministry of Coal and accordingly the investment
Managements Responsibility for the Standalone Financial Statements
made by the company of `56289.96 lacs has been reclassified to non-
The Companys Board of Directors is responsible for the matters stated current assets from capital work in progress and capital advances.
in Section 134(5) of the Companies Act, 2013 (the Act) with respect to We are unable to comment on the impact on the value of investment made
preparation of these standalone financial statements that give a true and by the company and its associate in the de-allocated coal blocks and their
fair view of the financial position, financial performance and cash flows consequent impact on the losses for the financial year ended March 31, 2016.
of the Company in accordance with the accounting principles generally
accepted in India, including the Accounting Standards specified under Qualified Opinion
Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, In our opinion, and to the best of our information and according to the
2014. This responsibility also includes maintenance of adequate accounting explanations given to us, except for the matter described in the Basis of
records in accordance with the provisions of the Act for safeguarding of the Qualified Opinion paragraph above, the aforesaid standalone financial
assets of the Company and for preventing and detecting frauds and other statements give the information required by the Act in the manner so
irregularities; selection and application of appropriate accounting policies; required and give a true and fair view in conformity with the accounting
making judgments and estimates that are reasonable and prudent; and principles generally accepted in India, of the state of affairs of the Company
design, implementation and maintenance of adequate internal financial as at March 31, 2016 and its loss and its cash flows for the year ended on
controls, that were operating effectively for ensuring the accuracy and that date.
completeness of the accounting records, relevant to the preparation and
Report on Other Legal and Regulatory Requirements
presentation of the financial statements that give a true and fair view and
1. As required by the the Companies (Auditors Report) Order, 2016
are free from material misstatement, whether due to fraud or error.
issued by the Central Government of India in terms of sub-section
Auditors Responsibility (11) of section 143 of the Act (hereinafter referred to as the Order),
Our responsibility is to express an opinion on these standalone financial we give in the Annexure A a statement on the matters specified in
statements based on our audit. the paragraphs 3 and 4 of the Order, to the extent applicable.

We have taken into account the provisions of the Act, the accounting and 2. As required by section 143 (3) of the Act, we report that:
auditing standards and matters which are required to be included in the
(a) We have sought and except for the possible effect of the matter
audit report under the provisions of the Act and the Rules made there-
described in the Basis of Qualified Opinion paragraph above,
under.
obtained all the information and explanations which to the best
We conducted our audit in accordance with the Standards on Auditing of our knowledge and belief were necessary for the purpose of
specified under Section 143(10) of the Act. Those Standards require that our audit;
we comply with ethical requirements and plan and perform the audit to
obtain reasonable assurance about whether the financial statements are (b) Except for the possible effect of the matter described in the Basis
free from material misstatement. of Qualified Opinion paragraph above, in our opinion, proper
books of account as required by law have been kept by the
An audit involves performing procedures to obtain audit evidence about the Company so far as appears from our examination of those books;
amounts and the disclosures in the financial statements. The procedures
selected depend on the auditors judgment, including the assessment of (c) The Balance Sheet, Statement of Profit and Loss and Cash Flow
the risks of material misstatement of the financial statements, whether Statement dealt with by this Report are in agreement with the
due to fraud or error. In making those risk assessments, the auditor books of account;
considers internal financial control relevant to the Companys preparation (d) Except for the possible effect of the matter described in the
of the financial statements that give a true and fair view in order to design Basis of Qualified Opinion paragraph above, in our opinion,
audit procedures that are appropriate in the circumstances. An audit the aforesaid standalone financial statements comply with the
also includes evaluating the appropriateness of the accounting policies Accounting Standards specified under section 133 of the Act,
used and the reasonableness of the accounting estimates made by the read with Rule 7 of the Companies (Accounts) Rules, 2014;
Companys Directors, as well as evaluating the overall presentation of the
financial statements. (e) The matters described in the Basis of Qualified Opinion
paragraphs above, in our opinion may have an adverse effect on
We believe that the audit evidence we have obtained is sufficient and the functioning of the Company;
appropriate to provide a basis for our audit opinion on the standalone
financial statements. (f) 
On the basis of written representations received from the
directors as on March 31, 2016, taken on record by the Board of
Basis of Qualified Opinion Directors, none of the directors is disqualified as on March 31,
The Supreme Court of India, vide its order dated 24.09.2014, cancelled 2016, from being appointed as a director in terms of sub-section
number of coal blocks allocated to various entities, which includes one (2) of Section 164 of the Companies Act, 2016 as indicated in
coal block allocated to the company and one of its associated company, the Note 47(b) to the financial statements.
which were under development. Subsequently, the Government of India
has issued the Coal Mines (Special Provision) Act, 2015, which inter-alia (g) The qualification relating to the maintenance of accounts and
deal with the payment of compensation to the effected parties in regard to other matters connected therewith are as stated in the basis of
investment in the coal blocks. Qualified Opinion paragraph above;

29
BHUSHAN STEEL LIMITED Annual Report 2015-16

(h) With respect to the adequacy of the internal financial controls iii. t here has been no delay in transferring amounts , required to
over financial reporting of the Company and the operating be transferred to the Investor Education and Protection Fund
effectiveness of such controls, refer to our separate Report in by the Company.
Annexure B; and
(i) with respect to the other matters to be included in the Auditors
Report in accordance with Rule 11 of the Companies (Audit and For MEHRA GOEL & CO. For MEHROTRA & MEHROTRA
Auditors) Rules, 2014, in our opinion and to the best of our Chartered Accountants Chartered Accountants
information and according to the explanations given to us: (FRN: 000517N) (FRN: 000226C)

i. the Company has disclosed the impact of pending litigations

on its financial position in its financial Statements Refer Note R.K. Mehra M.P. Mehrotra
29 to the financial statements; Partner Partner
ii. t he company has made provisions, as required under applicable M. N0.: 006102 M. N0. : 005699
law or accounting standards, for material foreseeable losses,
if any, on long-term contracts including derivative contracts Place: New Delhi
Refer Note-53 to the financial statements; Date: 30th May, 2016

30
 Corporate overview Management reports financial statements

ANNEXURE TO THE INDEPENDENT AUDITORS REPORT According to the information and explanations given to us, the
(iii) 
The Annexure A referred to in our Independent Auditors Report to the Company has not granted secured or unsecured loan to a company,
members of the Company on the financial statements of Bhushan Steel firm, LLP or other entity covered in the register maintained under
Ltd. for the year ended 31st March, 2016, we report that: Section 189 of the Companies Act, 2013. Accordingly, the provisions
of sub-paragraph (a) and (b) of the Order are not applicable.
(i) In respect of its fixed assets:
(iv) In our opinion and according to the information and explanations
The Company is maintaining proper records showing full
(a)  given to us, the Company has generally complied with the provisions
particulars including quantitative details and situation of fixed of section 185 and 186 of Companies Act, 2013 with respect to the
assets on the basis of available information; loans, investments, guarantees and security.
(b) The fixed assets covering significant value were physically (v) According to the information and explanations given to us, the Company
verified during the year by the Management at such intervals has not accepted any deposits during the year. Hence, the directives
which in our opinion, provides for the physical verification of issued by the Reserve Bank of India and the provisions of section 73 to
all the Fixed Assets at reasonable intervals having regard to 76 or any other relevant provisions of the Companies Act, 2013 and the
the size of the Company and nature of its business. According rules framed there-under are not applicable to the Company.
to the information and explanations given to us, no material
discrepancies were noticed on such verification; (vi) In our opinion and according to the information and explanations
given to us, specified accounts and records as prescribed by the
(c) According to the information and explanations given to us and Central Government in terms of sub-section (1) of section 148 of the
on the basis of our examination of the records of the Company, Companies Act, 2013 have been prima facie made and maintained by
the title deeds of immovable properties are held in the name of the company. However, we have not, nor we are required, carried out
company except the following: any detailed examination of such accounts and records.
In case of Buildings: Total number of case: One case (vii) (a) According to the information and explanations given to us and
Gross block: `80.29 lacs & Net block : `68.94 lacs as at on the basis of our examination of the records, the Company
31.03.2016 is generally regular in depositing undisputed statutory dues
Remarks, if any: Guest house building in Mumbai with some delay including provident fund, employees state
According to the information and explanations given to us, the
(ii)  insurance, income-tax, sales-tax, service tax, duty of customs,
inventory of finished goods, semi-finished goods and raw material at value added tax, cess and any other material statutory dues to
works were, during the year physically verified by the management. the appropriate authorities to the extent these are applicable
In respect of stores spare parts and stock at yards in the custody except deposit of duty of excise where payment is irregular.
of the third party and stocks in transit were verified with the According to the information and explanations given to us, no
confirmation or statement of account or correspondence of the third undisputed dues were in arrears as at 31st March, 2016 for a
parties or certification by management or reports of inspection and period of more than six months from the date they become
different audits carried out by the banks. In our opinion and according payable.
to the information and explanations given to us, the interval of such
physical verification is reasonable having regard to the size of the (b) However, according to the information and explanations given
Company and nature of its business and according to the information to us, the following dues of sales tax, duty of excise, service
and explanations given to us, no material discrepancies were noticed tax, value added tax and other statutory dues have not been
on such verification. deposited by the Company on account of disputes:

Name of the statute Nature of dues Amount Period to which the amount relates Forum where dispute is
(` In lacs) pending
The Central Excise Act, 1944 Excise Duty 0.26 Jun'01 & Jul'01 High Court of Allahabad
14,357.21 Aug05 to Jul 09, Aug 09 to Mar10, CESTAT, Kolkata
Apr09 to Jan10 & Apr10 to Jan11
70.04 Feb10 to Nov11, Apr10 to Jan11 & Commissioner (Appeals),
Apr08 to Mar11 Bhubaneswar
3,471.95 FY 2006-07 to 2009-10, May08 to CESTAT, New Delhi
Mar09 & Apr'06 to Mar'09
243.99 Apr12 to Mar13 Commissioner (Appeal),
Ghaziabad
397.92 Jul'13 to Mar'14 CESTAT, Mumbai
26.66 Jan12 to Oct12 Commissioner Excise
Appeals Zone II, Mumbai
Custom Act, 1962 Custom Duty 246.41 30th Jun2009 & 2009-10 Commissioner of Custom,
Vizag
Finance Act, 1994 [Service Service Tax 3,633.47 Dec05 to Aug08 & Oct09 to Sep10 CESTAT, Kolkata
Tax Provisions]
109.14 2006-07 to 2007-08 & Mar11 Commissioner (Appeal),
Bhubaneswar
52.33 Dec04 to Nov07 CESTAT, Mumbai

31
BHUSHAN STEEL LIMITED Annual Report 2015-16

Name of the statute Nature of dues Amount Period to which the amount relates Forum where dispute is
(` In lacs) pending
Sales Tax Acts of various Local Sales Tax 32,544.19 Apr05 to Mar12 Orissa High Court at
States Cuttack
320.43 2002-03, 2003-04, 2004-05, Apr06 to High Court of Allahabad
Oct06 & 2006-07
919.40 2009-10 & Jun'14 Additional Commissioner
(Appeal), Ghaziabad
170.77 April 07 to Dec 07 Trade Tax Tribunal,
Ghaziabad
340.11 Apr14 & May14 Joint Commissioner
(Appeal), Ghaziabad
Central Sales Tax Act, 1956 Central Sales Tax 2,151.22 2002-03, 2003-04, 2004-05, Apr06 to High Court of Allahabad
Oct06 & 2006-07
1,119.19 2009-10 & Jun'14 Addl. Commissioner
(Appeal), Ghaziabad
417.37 2007-08 Trade Tax Tribunal,
Ghaziabad
Uttar Pradesh Tax on Entry Entry Tax 23.92 1995-96 High Court of Allahabad
of Goods into Local Areas
661.42 2009-10 Addl. Commissioner
Act, 2007
(Appeal), Ghaziabad
Odisha Entry Tax Act, 1999 Entry Tax 20,860.18 Dec07 to Mar12 Supreme Court
2,498.15 Apr05 to Jan08 & Apr10 to Mar12 Addl. Commissioner of
Sales Tax (Appeal), Cuttack
Orissa Minor Minerals Royalty 2,113.55 2006-2014 Odisha High Court
Concession Rules, 2004

(viii) Based on our audit procedure and according to the information and institution, bank, Government or a debenture holder as per details
explanations given to us, we are of the opinion that the Company given here-under:
has defaulted in repayment of loans / borrowings to the financial
(` in lacs)
Particulars Amount of Default as on Balance Sheet Date Period of Default (in months )
Principal Interest Principal Interest
(i) Name of the Lenders : In case of :
A. Banks (INR loans)
1 Allahabad Bank - 2,717.41 < 3 months
2 Andhra Bank 187.50 1,121.92 < 3 months < 3 months
3 AXIS Bank - 2,318.53 < 3 months
4 Bank of Baroda - 4,157.84 > 3 months
5 Bank of India 13,333.33 4,200.60 < 3 months < 3 months
6 Bank of Tokyo - 192.91 < 3 months
7 Bank of Maharashtra - 6,174.11 > 3 months
8 Canara Bank 250.00 3,118.10 < 3 months > 3 months
9 Central bank of India - 6,485.01 > 3 months
10 Corporation bank - 773.55 < 3 months
11 Dena Bank - 1,295.77 < 3 months
12 ICICI Bank - 1,894.40 < 3 months
13 Indian Bank - 1,978.45 > 3 months
14 Indian Overseas Bank - 2,068.66 > 3 months

32
 Corporate overview Management reports financial statements

(` in Lacs)
Particulars Amount of Default as on Balance Sheet Date Period of Default (in months )
Principal Interest Principal Interest
15 Indusind Bank - 7.36 < 3 months
16 Jammu & Kashmir Bank - 3,288.97 > 3 months
17 Karur Vyasa Bank Limited - 543.36 > 3 months
18 Lakshmi Vilas Bank - 102.28 < 3 months
19 Oriental Bank of Commerce - 3,228.46 > 3 months
20 Punjab & Sind Bank - 3,496.21 > 3 months
21 Punjab National Bank - 4,872.08 > 3 months
22 Saraswat Bank - 815.60 > 3 months
23 State Bank of Bikaner and Jaipur 93.00 985.42 < 3 months < 3 months
24 State Bank of India 1,250.00 5,583.47 < 3 months < 3 months
25 State Bank of Hyderabad 250.00 1,687.64 < 3 months < 3 months
26 State Bank of Mysore 1,375.00 895.87 < 3 months < 3 months
27 State Bank of Patiala 1,250.00 2,591.50 < 3 months < 3 months
28 State Bank of Travancore 187.50 1,430.26 < 3 months > 3 months
29 South Indian Bank - 266.21 < 3 months
30 Syndicate Bank - 5,351.73 > 3 months
31 UCO Bank - 2,748.26 < 3 months
32 Union Bank of India - 3,758.82 > 3 months
33 United Bank of India - 4,028.07 > 3 months
33 Vijaya Bank - 2,018.30 > 3 months
Total (A) 18,176.33 86,197.13
B. Banks (Foreign Currency Loans)
1 AXIS Bank - 715.29 < 3 months
2 Calyon Bank 4,697.80 78.31 > 3 months > 3 months
3 Deutsche Zentral Genossenschafts Bank* 14,570.79 - > 3 months
4 Deutsche Bank 7,058.62 576.16 > 3 months < 3 months
5 Development Bank of Singapore Limited - 236.68 < 3 months
6 HSH Nordbank* 30,410.62 63.61 > 3 months < 3 months
7 ICICI Bank 2,893.78 1,383.62 < 3 months < 3 months
8 ING Bank 292.83 1.12 > 3 months > 3 months
9 Natixis* 10,941.09 1103.51 > 3 months > 3 months
10 State Bank of India (Consortium) 12,147.21 9,110.01 < 3 months < 3 months
Total (B) 83,012.74 13,268.31
* Company received in principle approval for restructuring.

33
BHUSHAN STEEL LIMITED Annual Report 2015-16

Particulars Amount of Default as on Balance Sheet Date Period of Default (in months )
Principal Interest Principal Interest
C. Financial Institutions
1 EXIM Bank - 823.09 < 3 months
2 Family Credit Ltd. - 71.40 < 3 months
3 Industrial Development Bank of India 1,465.00 7,949.39 > 3 months > 3 months
4 Industrial Financial Corporation of India 150.00 1,296.36 > 3 months > 3 months
5 The Development Bank of Singapore Limited - 280.48 < 3 months
6 Life Insurance Corporation of India 1,021.17 109.92 > 3 months > 3 months
7 L&T Finance Ltd. - 40.80 < 3 months
8 L&T Fincorp Ltd. - 77.46 < 3 months
9 STCI Finance Ltd. - 197.29 < 3 months
10 TATA Capital Ltd. 34.48 9.90 < 3 months < 3 months
Total ( C) 2,670.65 10,856.09

(ii) Secured Debentures 925.00 20638.12 > 3 months > 3 months

Total (D) 925.00 20638.12

Grand Total (A+B+C+D) 104,784.72 130,959.65

The Company is enjoying working capital facility of `12600 crores the related parties are in compliance with sections 177 and 188 of
(funded and non funded) and there is outstanding amount of `9768.10 the Act where applicable and details of such transactions have been
crores as at 31st March, 2016, which includes overdrawn amount of disclosed in the financial statement as required by the applicable
`3885.95 crores. Further, interest of `137.50 crores is overdue thereon. accounting standards.
According to the information and explanations given to us, the
(ix)  (xiv) According to the information and explanations given to us and based
Company has raised money by way of term loans during the year on our examination of the records of the company, the company has
and to the best of our knowledge and according to the information made private placement of redeemable cumulative preference shares
and explanations given to us, the amount received by means of these during the year under review and in our opinion, the requirement of
loans have been pooled and utilized through Trust Retention Account section 42 of the Act have been complied with and the amount raised
(TRA) maintained by State Bank of India, the lead banker, on behalf have been used for the purposes for which the funds were raised.
of all other consortium members.
(xv) According to the information and explanations given to us and based
(x) To the best of our knowledge and according to the information and on our examination of the records of the company, the company
explanations given to us, no material fraud by the company or on the has not entered into non-cash transactions with directors or persons
Company by its officers or employees has been noticed or reported connected with him.
during the course of our audit.
(xvi) As per our information, the company is not required to be registered
(xi) According to our information and explanations given to us and based under Section 45-1A of the Reserve Bank of India Act, 1934.
on our examination of the records of the Company, managerial
remuneration has been paid / provided in accordance with the
requisite approvals mandated by the provisions of section 197 read For MEHRA GOEL & CO. For MEHROTRA & MEHROTRA
with Schedule V to the Act except the payment of leave encashment, Chartered Accountants Chartered Accountants
provident fund and taxable car perquisites for which clarification is (FRN: 000517N) (FRN: 000226C)
sought by the management from Central Government. (Refer Note 48
to the financial statements)
(xii) In our opinion and according to the information and explanations R.K. Mehra M.P. Mehrotra
given to us, the Company is not a Nidhi company. Accordingly, para Partner Partner
(xii) of the Order is not applicable to the Company. M. N0.: 006102 M. N0. : 005699

(xiii) According to the information and explanations given to us and based Place: New Delhi
on our examination of the records of the company, transactions with Date: 30th May, 2016

34
 Corporate overview Management reports financial statements

Annexure - B to the Auditors Report Meaning of Internal Financial Controls over Financial Reporting
A company's internal financial control over financial reporting is a process
Report on the Internal Financial Controls under Clause (i) of Sub- designed to provide reasonable assurance regarding the reliability of
section 3 of Section 143 of the Companies Act, 2013 (the Act) financial reporting and the preparation of financial statements for external
We have audited the internal financial controls over financial reporting of purposes in accordance with generally accepted accounting principles. A
Bhushan Steel Limited (the Company) as of 31 March 2016 in conjunction company's internal financial control over financial reporting includes those
with our audit of the standalone financial statements of the Company for policies and procedures that (1) pertain to the maintenance of records
the year ended on that date. that, in reasonable detail, accurately and fairly reflect the transactions
and dispositions of the assets of the company; (2) provide reasonable
Managements Responsibility for Internal Financial Controls assurance that transactions are recorded as necessary to permit
The Companys management is responsible for establishing and preparation of financial statements in accordance with generally accepted
maintaining internal financial controls based on the internal control over accounting principles, and that receipts and expenditures of the company
financial reporting criteria established by the Company considering the are being made only in accordance with authorizations of management
essential components of internal control stated in the Guidance Note on and directors of the company; and (3) provide reasonable assurance
Audit of Internal Financial Controls over Financial Reporting issued by the regarding prevention or timely detection of unauthorized acquisition, use,
Institute of Chartered Accountants of India (ICAI). These responsibilities or disposition of the company's assets that could have a material effect on
include the design, implementation and maintenance of adequate internal the financial statements.
financial controls that were operating effectively for ensuring the orderly
and efficient conduct of its business, including adherence to companys Inherent Limitations of Internal Financial Controls Over Financial
policies, the safeguarding of its assets, the prevention and detection Reporting
of frauds and errors, the accuracy and completeness of the accounting Because of the inherent limitations of internal financial controls over
records, and the timely preparation of reliable financial information, as financial reporting, including the possibility of collusion or improper
required under the Companies Act, 2013. management override of controls, material misstatements due to error or
fraud may occur and not be detected. Also, projections of any evaluation of
Auditors Responsibility
the internal financial controls over financial reporting to future periods are
Our responsibility is to express an opinion on the Company's internal
subject to the risk that the internal financial control over financial reporting
financial controls over financial reporting based on our audit. We conducted
may become inadequate because of changes in conditions, or that the
our audit in accordance with the Guidance Note on Audit of Internal
degree of compliance with the policies or procedures may deteriorate.
Financial Controls over Financial Reporting (the Guidance Note) and
the Standards on Auditing, issued by ICAI and deemed to be prescribed Opinion
under section 143(10) of the Companies Act, 2013, to the extent applicable In our opinion, the Company has, in all material respects, an adequate
to an audit of internal financial controls, both applicable to an audit of internal financial controls system over financial reporting and such internal
Internal Financial Controls and, both issued by the Institute of Chartered financial controls over financial reporting were operating effectively as
Accountants of India. Those Standards and the Guidance Note require that at 31 March 2016, based on the internal control over financial reporting
we comply with ethical requirements and plan and perform the audit to criteria established by the Company considering the essential components
obtain reasonable assurance about whether adequate internal financial of internal control stated in the Guidance Note on Audit of Internal Financial
controls over financial reporting was established and maintained and if Controls Over Financial Reporting issued by the Institute of Chartered
such controls operated effectively in all material respects. Accountants of India.
Our audit involves performing procedures to obtain audit evidence about
the adequacy of the internal financial controls system over financial
reporting and their operating effectiveness. Our audit of internal financial For MEHRA GOEL & CO. For MEHROTRA & MEHROTRA
controls over financial reporting included obtaining an understanding of Chartered Accountants Chartered Accountants
internal financial controls over financial reporting, assessing the risk that (FRN: 000517N) (FRN: 000226C)
a material weakness exists, and testing and evaluating the design and
operating effectiveness of internal control based on the assessed risk.
The procedures selected depend on the auditors judgement, including R.K. Mehra M.P. Mehrotra
the assessment of the risks of material misstatement of the financial Partner Partner
statements, whether due to fraud or error. We believe that the audit M. N0.: 006102 M. N0. : 005699
evidence we have obtained is sufficient and appropriate to provide a basis
for our audit opinion on the Companys internal financial controls system Place: New Delhi
over financial reporting. Date: 30th May, 2016

35
BHUSHAN STEEL LIMITED Annual Report 2015-16

BALANCE SHEET AS AT 31ST MARCH, 2016

(` in Lacs)
NOTE As at As at
31.03.2016 31.03.2015
EQUITY AND LIABILITIES
Shareholders' Funds
Share Capital 2 22680.09 17551.47
Reserves and Surplus 3 449802.37 770505.31
472482.46 788056.78
Share Application Money Pending Allotment - -
Non-Current Liabilities
Long-Term Borrowings 4 3232602.13 3092772.22
Deferred Tax Liabilities (Net) 5 63959.26 137407.19
Other Long-Term Liabilities 6 63575.20 63530.01
3360136.59 3293709.42
Current Liabilities
Short-Term Borrowings 7 1002950.44 760154.45
Trade Payables 8 117628.34 273914.63
Other Current Liabilities 9 459188.24 172068.87
Short-Term Provisions 10 3520.24 2848.10
1583287.26 1208986.05
Total 5415906.31 5290752.25
ASSETS
Non-Current Assets
Fixed Assets 11
Tangible Assets 3649723.67 3656317.63
Intangible Assets 7.66 39.03
Capital Work in Progress 286889.86 251184.10
3936621.19 3907540.76
Non-Current Investments 12 61546.79 61546.79
Long-Term Loans and Advances 13 116040.18 152623.76
Other Non-Current Assets 14 58730.10 2459.23
236317.07 216629.78
Current Assets
Inventories 15 880858.43 732123.31
Trade Receivables 16 235115.73 239828.55
Cash & Bank Balances 17 16332.53 8684.21
Short-Term Loans and Advances 18 109641.44 123521.72
Other Current Assets 19 1019.92 62423.92
1242968.05 1166581.71
Total 5415906.31 5290752.25
Significant Accounting Policies 1
Other Notes on Financial Statements 29 to 60

As per our report of even date attached

For MEHRA GOEL & CO. For MEHROTRA & MEHROTRA
Chartered Accountants Chartered Accountants
(Registration No.: 000517N) (Registration No.000226C)
Sd/- Sd/- Sd/- Sd/-
R. K. MEHRA M.P. MEHROTRA B. B. SINGAL NEERAJ SINGAL
PARTNER PARTNER NON-EXECUTIVE CHAIRMAN VICE CHAIRMAN &
M. NO.:006102 M.NO.:005699 MANAGING DIRECTOR
Sd/- Sd/- Sd/-
PANKAJ KUMAR NITTIN JOHARI O. P. DAVRA
Place: New Delhi HEAD WHOLE TIME DIRECTOR (FINANCE) COMPANY
Dated: 30th May, 2016 (ACCOUNTS) & CHIEF FINANCIAL OFFICER SECRETARY

36
 Corporate overview Management reports financial statements

STATEMENT OF PROFIT AND LOSS

FOR THE YEAR ENDED 31ST MARCH, 2016
(` in Lacs)

NOTE Year Ended 31.03.2016 Year Ended 31.03.2015

INCOME

Gross Revenue from Operations 20 1312406.77 1173501.72

Less: Excise Duty 132143.41 1180263.36 108924.65 1064577.07

Other Income 21 2283.26 1350.71

TOTAL REVENUE 1182546.62 1065927.78

EXPENSES

Cost of Materials Consumed 22 654883.40 568467.91

Purchase of Goods Traded 23 259.11 4831.81

Change in Inventories of Finished Goods , Work In Progress and 24 (6679.35) 21766.50

Stock- in -Trade

Employee Benefits Expense 25 43247.76 25752.89

Finance Costs 26 458230.14 249402.57

Depreciation and amortization expense 109974.44 93839.85

Other Expenses 27 280015.76 226361.11

Total Expenses 1539931.26 1190422.64

Profit / (Loss) Before exceptional & extraordinary item (357384.64) (124494.86)

and Tax

Exceptional Items 28 - 1000.00

Profit / (Loss) Before Tax (357384.64) (125494.86)

Tax Expenses

- Deferred Tax (73447.93) (112.06)

Profit / (Loss) for the year (283936.71) (125382.80)

Basic Earning Per Share (`) (126.12) (55.84)

Diluted Earning Per Share (`) (126.12) (55.84)

Nominal Value of Share (`) 2.00 2.00

(Refer Note 40)

Significant Accounting Policies 1

Other Notes on Financial Statements 29 to 60

As per our report of even date attached

For MEHRA GOEL & CO. For MEHROTRA & MEHROTRA
Chartered Accountants Chartered Accountants
(Registration No.: 000517N) (Registration No.000226C)
Sd/- Sd/- Sd/- Sd/-
R. K. MEHRA M.P. MEHROTRA B. B. SINGAL NEERAJ SINGAL
PARTNER PARTNER NON-EXECUTIVE CHAIRMAN VICE CHAIRMAN &
M. NO.:006102 M.NO.:005699 MANAGING DIRECTOR
Sd/- Sd/- Sd/-
PANKAJ KUMAR NITTIN JOHARI O. P. DAVRA
Place: New Delhi HEAD WHOLE TIME DIRECTOR (FINANCE) COMPANY
Dated: 30th May, 2016 (ACCOUNTS) & CHIEF FINANCIAL OFFICER SECRETARY

37
BHUSHAN STEEL LIMITED Annual Report 2015-16

CASH FLOW STATEMENT

FOR THE YEAR ENDED 31ST MARCH, 2016
(` in Lacs)
Year Ended 31.03.2016 Year Ended 31.03.2015
(A) CASH FLOW FROM OPERATING ACTIVITIES :
Net Profit / (Loss) before tax and extraordinary items (357384.64) (125494.86)
Adjustments for :
Depreciation & Amortization Expenses 109974.44 93839.85
Provisions (Retirement Benefits) 672.14 824.75
Finance Cost 458230.14 249402.57
Interest/Dividend Income on Investment (0.04) (1.38)
Interest Income (others) (1328.30) (801.52)
Dimuniation in the Value of Investment - 1000.00
Loss / (Profit) on Sale of Fixed Assets (861.35) (486.77)
Provision for Doubtful Debts / Bad Debts Written off 997.20 383.72
Loss / (Gain) on Exchange Rate Change (1762.82) 565921.41 393.49 344554.71
Operating Profit Before Working Capital Changes 208536.77 219059.85
Adjustments for :
Increase(-) / Decrease in Inventories (148735.12) (84098.39)
Increase(-) / Decrease in Trade Receivables 3790.17 4797.92
Increase(-) / Decrease in Loans & Advances 12446.86 18356.82
Increase / Decrease(-) in Trade Payables & Other Liabilities (102572.84) (235070.93) 59330.69 (1612.96)

Cash Flow from Operating Activities (26534.16) 217446.89

Direct Tax Paid (Net of Refund) (493.51) (124.09)
Net Cash (Used) / Flow in / from Operating Activities (A) (27027.67) 217322.80

(B) CASH FLOW FROM INVESTING ACTIVITIES :

Purchase of Fixed Assets (75520.82) (171724.21)
Proceeds from Sale of Fixed Assets 62306.47 33036.62
Purchase of Investment - (222.64)
Long Term Fixed Deposits 19.09 (2459.23)
Interest Income 1277.99 1089.35
Dividend Income 0.04 1.38
Net Cash Used In Investing Activities (B) (11917.23) (140278.73)

38
 Corporate overview Management reports financial statements

(` in Lacs)
Year Ended 31.03.2016 Year Ended 31.03.2015
(C) CASH FLOW FROM FINANCING ACTIVITIES :
Finance Cost (401505.79) (433410.47)
Proceeds From Cash Credit from Banks(Net) 279058.49 118714.27
Proceeds From Other Borrowings 200679.96 242262.73
Proceeds From Share / Share Application Money 6500.00 20014.02
Redemption of Preference Shares Including Premium (38676.04) (22151.40)
Capital Subsidy 538.43 270.10
Dividend Paid - (1915.69)
Unclaimed Dividend (1.83) (96.70)
Dividend Tax Paid - (342.68)
Net Cash Flow From Financing Activities (C) 46593.22 (76655.82)
Net Increase/ (Decrease) in Cash and Cash Equivalents 7648.32 388.25
(A+B+C)
Opening Balances of Cash and Cash Equivalents 8684.21 8295.96
Closing Balances of Cash and Cash Equivalents 16332.53 8684.21

Note:-
i) The above cash flow statement has been prepared under the indirect method as set out in Accounting Standard (AS) - 3 on Cash Flow Statement.
ii) Cash and Cash equivalents include `14.93 Lacs (Previous Year `16.76 Lacs) in respect of unclaimed dividend, the balance of which is not available
to the Company.
iii) Figures in brackets represent cash out flow.
iv) Previous Year Figures have been rearranged/regrouped wherever considered necessary.

As per our report of even date attached

For MEHRA GOEL & CO. For MEHROTRA & MEHROTRA
Chartered Accountants Chartered Accountants
(Registration No.: 000517N) (Registration No.000226C)
Sd/- Sd/- Sd/- Sd/-
R. K. MEHRA M.P. MEHROTRA B. B. SINGAL NEERAJ SINGAL
PARTNER PARTNER NON-EXECUTIVE CHAIRMAN VICE CHAIRMAN &
M. NO.:006102 M.NO.:005699 MANAGING DIRECTOR
Sd/- Sd/- Sd/-
PANKAJ KUMAR NITTIN JOHARI O. P. DAVRA
Place: New Delhi HEAD WHOLE TIME DIRECTOR (FINANCE) COMPANY
Dated: 30th May, 2016 (ACCOUNTS) & CHIEF FINANCIAL OFFICER SECRETARY

39
BHUSHAN STEEL LIMITED Annual Report 2015-16

NOTE - 1 SIGNIFICANT ACCOUNTING POLICIES

1) PRESENTATION OF FINANCIAL STATEMENTS 8) IMPAIRMENT OF ASSETS
The financial statements have been prepared in compliance to
the requirements of the Companies Act 2013 (the Act), applicable Carrying amount of cash generating units / fixed assets are reviewed
Accounting Standards and the requirements of Schedule-III of the for impairment, if events or changes in circumstances indicate that
Act. the carrying value of an asset may not be recoverable. The excess of
carrying value of the asset over the recoverable amount is charged,
2) BASIS OF PREPARATION as an impairment loss to the Statement of Profit and Loss.
The financial statements have been prepared on historical cost
9) DEPRECIATION
convention, in accordance with applicable Accounting Standards and
provisions of the Act as adopted consistently by the Company, except Depreciation on all fixed assets at Khopoli Plant and a Cold Rolling
for defined benefit pension / other funds obligations that have been Plant acquired prior to 1st April 1996 and Galvanising Plant & Power
measured at fair value. The carrying value of certain monetary items Plant acquired before 1st April 2002 including addition or extension
denominated in foreign currency is translated at the exchange rates forming integral part of above plants at Sahibabad Plant has been
applicable on the date of Balance Sheet. provided on Written Down Value method and depreciation on all other
fixed assets at Sahibabad Plant and Orissa Plant has been provided on
3) USE OF ESTIMATES
Straight Line Method.
The preparation of financial statements require estimates and
assumptions to be made that affect the reported amount of assets The Economic Useful Life of all major plants at various units has been
and liabilities on the date of the financial statements and the reported determined based on triple shift working as per technical assessment
amount of the revenue and the expenses during the reporting period. and in respect of all other fixed assets the life has been taken as per
Difference between the actual results and estimates are recognized in Schedule-II to the Companies Act, 2013.
the period in which the results are known / materialized.
The Economic Useful Life of Plants including auxiliary equipments has
4) REVENUE / EXPENDITURE RECOGNITION been determined below:-
Revenue is recognized when it can be reliably measured and when
all significant risks and rewards / ownership are transferred to the S. No. Description of Plant Life Span in
customer. Sales are inclusive of sales during trial run, excise duty, Years
customs duty. Exports sales are net of ocean freight, insurance and 1 Sinter Plant 35-38
discount.
2 Blast Furnace 35-38
 Dividend is recognized when companys right to receive is established.
3 Coke Ovens 35-38
Interest income is recognized on accrual basis in the income
statement. 4 Rolling Mill in Steel Plant 35-38
Expenditure is accounted for on accrual basis and provision is made 5 Basic Oxygen Furnace Converter 35-38
for all known losses and obligations. 6 DRI Plant 38
5) FIXED ASSETS 7 Tube Mill, Large Dia Pipe Plant, H&T, 35
The initial cost of Fixed Assets comprises its purchase price, including HTSS
import duties, net of modvat / cenvat, less accumulated depreciation
and include directly attributable costs of bringing an asset to working 8 Power Plant (Thermal Base) 38
condition and location for its intended use, including borrowing costs 9 Power Plant (HSD / Gas Base) 30
relating to the qualified asset over the period upto the date the asset
is ready to commence commercial production. Adjustments arising 10 Lab Equipment 20
from exchange rate variations relating to long term monetary items
attributable to the depreciable fixed assets are capitalized.
10) INVENTORIES
Machine spares that can be used only in connection with an item of Inventories are valued at lower of cost or net realizable value, less
fixed asset and their use is expected to be irregular are capitalized. any provisions for obsolescence.
The replacement of such spares is charged to revenue.
Cost is determined on the following basis :-
Capital expenditure on assets not owned by the company with
exclusive right to use is reflected in capital work-in-progress till the Raw Material is recorded at cost on a first-in-first-out (FIFO) basis.
period of completion and thereafter in Fixed Assets.
Finished goods and work-in-progress are valued at raw material cost
6) ASSETS IN THE COURSE OF CONSTRUCTION + cost of conversion and attributable proportion of manufacturing
 Assets in the course of construction are capitalized in the assets overhead incurred in bringing inventories to its present location and
under construction account. At the point when an asset is operating condition.
at managements intended use, the cost of construction is transferred
By products and scrap are valued at net realizable value.
to appropriate category of fixed assets. Costs associated with the
commissioning of an asset are capitalized where the asset is available Excise duty on closing stock of finished goods and scrap is accounted
for use but incapable of operating at normal levels until a period of for on the basis of payments made in respect of goods cleared as also
commissioning has been completed. provision made for goods lying in the factory and included in the value
of such stocks.
7) INTANGIBLE ASSETS
 In accordance with Accounting Standard (AS)-26 relating to 11) INVESTMENTS
intangible assets, all costs incurred on technical know how / license Investments are classified into Current and Non-current investments.
fee relating to production process are charged to revenue in the year Current investments are stated at lower of cost or market value / fair
of incurrence. Technical know how/license fee relating to process value. Non Current investments are stated at cost and provision
design / plants / facilities are capitalized at the time of capitalization for diminution in value is made only if such decline is other than
of the said plant/facility and amortized over a period of three years. temporary in the opinion of management.

40
 Corporate overview Management reports financial statements

12) FOREIGN EXCHANGE TRANSACTIONS 17) TAX EXPENSE

Transactions denominated in foreign currencies are normally recorded  Provision for current income tax is made after taking credit for
at the exchange rate prevailing at the time of transaction. Monetary allowance and exemptions. In case of matters under appeal, due to
items denominated in foreign currency outstanding at the year end disallowance or otherwise, provision is made when the said liabilities
are translated at exchange rate applicable on the date of Balance are accepted by the company.
Sheet. Non-monetary items denominated in foreign currency are
valued at the exchange rate prevailing on the date of transaction. Minimum Alternate Tax (MAT) paid in accordance with the Income Tax
Any income or expense on account of exchange difference either on Act, 1961, which gives rise to future economic benefits in the form of
settlement or on translation is recognized in the Statement of Profit adjustment of future income tax liability, is considered as an asset.
and Loss except in cases of long term monetary items, where these In accordance with the Accounting Standard (AS)-22 Accounting
relate to the acquisition of depreciable fixed assets, are adjusted to for Taxes on Income, the Deferred tax liability for timing differences
the carrying cost of such assets and in other cases are amortized over between the book and tax profits is accounted for using the tax
the period of such long term monetary item. rates and tax laws that have been enacted or substantially enacted
13) BORROWING COST as of the Balance Sheet date. Deferred Tax Assets arising from
Borrowing Cost relating to acquisition or construction of qualifying temporary timing differences are recognized to the extent there is
assets are included in the costs of those assets. A qualifying asset is virtual certainty that the assets can be realized in future.
one that necessarily takes substantial period of time to get ready for 18) LEASES
its intended use. All other borrowing costs are charged to revenue. (a) Lease Payment made on operating lease has been recognized
14) MODVAT / CENVAT / VAT as an expense in the statement of Profit & Loss on straight line
Modvat / Cenvat / Vat claimed on capital goods is credited to Assets / basis with reference to lease term and other consideration.
Capital work in progress account. Modvat/Cenvat/VAT on purchase of (b) Assets acquired under finance lease from 01.04.2001 are
raw materials and other materials are deducted from the cost of such capitalized at the lower of their fair value or the present value
materials. of the minimum lease payments.
15) CLAIMS 19) DERIVATIVE FINANCIAL INSTRUMENTS
 Claims receivable are accounted for depending on the certainty In respect of the financial derivative contracts the premium / interest
of receipt and claims payable are accounted for at the time of paid and profit / loss on settlement is charged to Statement of Profit
acceptance. and Loss. The contracts entered into are marked to market at the
16) EMPLOYEE BENEFITS year end and the resultant profit / loss is charged to Statement of
Short term employee benefits (benefits which are payable within Profit and Loss except where these relate to long term monetary
twelve months after the end of the period in which the employees items attributable to depreciable fixed assets in which case it is
render service) are measured at cost. Long term employee benefits adjusted to the cost of fixed assets.
(which are payable after the end of twelve months from end of the 20) PROVISION AND CONTINGENT LIABILITY
period in which the employees render service) and post employment Show cause notices issued by various government authorities are not
benefits (benefits which are payable after completion of employment) considered as obligation. Where the demand notices are raised, the
are measured on a discounted basis by the Projected Unit Credit show cause notice, disputed by the company, is classified as possible
Method on the basis of annual third party actuarial valuations. obligation.
Contributions to Provident Fund, a defined contribution plan are made Provisions involving substantial degree of estimation in measurement
in accordance with the statute, and are recognized as an expense are recognized when there is a present obligation as a result of past
when employees have rendered services entitling them to the events and it is probable that there will be an outflow of resources.
contribution. Contingent liabilities are not recognized but are disclosed in notes.
Companys contribution to state defined contribution plans namely 21) CONTINGENCIES & COMMITMENTS
Employee State Insurance and Maharashtra Labour Welfare fund In the normal course of business, contingent liabilities may arise from
are made in accordance with the statute, and are recognized as an litigation and other claims against the Company. Where the potential
expense when employees have rendered services entitling them to liabilities have a low probability of crystallizing or are very difficult
the contribution. to quantify reliably, these are treated as contingent liabilities. Such
The cost of providing leave encashment and gratuity, defined benefit liabilities are disclosed in the notes but are not provided for in the
plans, are determined using the Projected Unit Credit Method, on the financial statements, although there can be no assurance regarding
basis of actuarial valuations carried out by third party actuaries at the final outcome of the legal proceedings, the Company does not
each Balance Sheet date. The leave encashment and gratuity benefit expect them to have a materially adverse impact on the financial
obligations recognized in the balance sheet represent the present position or profitability.
value of the obligations as reduced by the fair value of Plan Assets.
Any asset resulting from this calculation is limited to the discounted
value of any economic benefits available in the form of refunds from
the plan or reduction in future contributions to the plan. Actuarial
gains and losses are recognized immediately in the Statement of
profit and loss.

41
BHUSHAN STEEL LIMITED Annual Report 2015-16

NOTES FORMING PART OF THE ACCOUNTS

(` in Lacs)
As at As at
31.03.2016 31.03.2015
NOTE -2 SHARE CAPITAL
Authorised
40,00,00,000 (Previous Year 40,00,00,000) Equity Shares of ` 2/- Each 8000.00 8000.00
2,05,00,000 (Previous Year 1,95,00,000) Preference Shares of ` 100/- Each 20500.00 19500.00
28500.00 27500.00
Issued
23,06,05,220 (Previous Year 23,06,05,220) Equity Shares of ` 2/- Each 4612.10 4612.10
69,97,445 ( Previous Year 83,68,833) 10% Non Convertible Cumulative Redeemable Preference Shares of 6997.45 8368.83
`100/- each
34,85,000 ( Previous Year 34,85,000) 2% Non Convertible Cumulative Redeemable Preference Shares of 3485.00 3485.00
`100/- each
11,67,340 ( Previous Year 11,67,340) 1% Non Convertible Cumulative Redeemable Preference Shares of 1167.34 1167.34
`100/- each
65,00,000 ( Previous Year Nil) 12% Non Convertible Cumulative Redeemable Preference Shares of ` 100/- 6500.00 -
each
22761.89 17633.27
Subscribed
22,65,14,746 (Previous Year 22,65,14,746) Equity Shares of ` 2/- Each fully paid up 4530.29 4530.29
Amount paid up on 784 (Previous Year 784) Equity Shares forfeited of ` 2/- each 0.01 0.01
69,97,445 ( Previous Year 83,68,833) 10% Non Convertible Cumulative Redeemable Preference Shares of 6997.45 8368.83
`100/- each
34,85,000 ( Previous Year 34,85,000) 2% Non Convertible Cumulative Redeemable Preference Shares of 3485.00 3485.00
`100/- each
11,67,340 ( Previous Year 11,67,340) 1% Non Convertible Cumulative Redeemable Preference Shares of 1167.34 1167.34
`100/- each
65,00,000 ( Previous Year Nil) 12% Non Convertible Cumulative Redeemable Preference Shares of ` 100/- 6500.00 -
each
22680.09 17551.47
Paid Up
22,65,14,746 (Previous Year 22,65,14,746) Equity Shares of ` 2/- Each fully paid up 4530.29 4530.29
Amount paid up on 784 (Previous Year 784) Equity Shares forfeited of ` 2/- each 0.01 0.01
69,97,445 ( Previous Year 83,68,833) 10% Non Convertible Cumulative Redeemable Preference Shares of 6997.45 8368.83
`100/- each
34,85,000 ( Previous Year 34,85,000) 2% Non Convertible Cumulative Redeemable Preference Shares of 3485.00 3485.00
`100/- each
11,67,340 ( Previous Year 11,67,340) 1% Non Convertible Cumulative Redeemable Preference Shares of 1167.34 1167.34
`100/- each
65,00,000 ( Previous Year Nil) 12% Non Convertible Cumulative Redeemable Preference Shares of ` 100/- 6500.00 -
each
22680.09 17551.47

Detail of Shareholders holding more than 5% shares :

Name of the Shareholders As at 31.03.2016 As at 31.03.2015
No of Shares % Held No of Shares % Held
(A) Equity Shareholders
1. Shri Brij Bhushan Singal 41103391 18.15% 41103391 18.15%
2. Shri Neeraj Singal 51480927 22.73% 51480927 22.73%
3. Bhushan Infrastructure Pvt. Ltd. 31901188 14.08% 32010805 14.13%
(B) Preference Shareholders
1. Shri Brij Bhushan Singal 1141633 6.29% 1363433 10.47%
2. Shri Neeraj Singal 2770472 15.26% 3137873 24.10%
3. Globus Realinfra Pvt. Ltd. (Formerly SUR Buildcon Pvt. Ltd.) 6501500 35.82% - -
4. BBN Transportation Pvt. Ltd. - - 663500 5.10%
5. Bhushan Finance Pvt. Ltd. - - 548810 4.21%
6. Robust Transportation Pvt. Ltd. - - 457067 3.51%

42
 Corporate overview Management reports financial statements

Reconciliation of number of shares outstanding is set out below:

Particulars As at 31.03.2016 As at 31.03.2015
No of Shares Amount No of Shares Amount
(` in Lacs) (` in Lacs)
(A) Equity Shares
At the beginning of the year 226514746 4530.29 226514746 4530.29
Add : Shares Issued - Call received - - - -
Less: Shares forfeited - - - -
At the end of the year 226514746 4530.29 226514746 4530.29
(B) Preference Shares(Non Convertible Cumulative Red-
demable Preference Shares)

10% Preference Shares

At the beginning of the year 8368833 8368.83 8235433 8235.43
Add : Shares Issued - - 133400 133.40
Less: Shares Redeemed 1371388 1371.38 - -
At the end of the year 6997445 6997.45 8368833 8368.83

4% Preference Shares
At the beginning of the year - - 336751 336.75
Add : Shares Issued - - - -
Less: Shares Redeemed - - 336751 336.75
At the end of the year - - - -

25% Preference Shares

At the beginning of the year - - 400000 400.00
Add : Shares Issued - - - -
Less: Shares Redeemed - - 400000 400.00
At the end of the year - - - -

2% Preference Shares
At the beginning of the year 3485000 3485.00 1400000 1400.00
Add : Shares Issued - - 2085000 2085.00
Less: Shares Redeemed - - - -
At the end of the year 3485000 3485.00 3485000 3485.00

1% Preference Shares
At the beginning of the year 1167340 1167.34 - -
Add : Shares Issued - - 1167340 1167.34
Less: Shares Redeemed - - - -
At the end of the year 1167340 1167.34 1167340 1167.34

12% Preference Shares

At the beginning of the year - - - -
Add : Shares Issued 6500000 6500.00 - -
Less: Shares Redeemed - - - -
At the end of the year 6500000 6500.00 - -

The holders of Equity Shares has one vote for each equity share held by them.The registered holders of Equity Shares are entitled to dividend declared
from time to time. The Preference Shareholders are entitled to pro-rata dividend in preference over Equity Shareholders . The dividend is cumulative at
the rate specified against each category .
The premium on redemption of preference shares to the extent of premium received on issue will be adjusted against the security premium account and
any premium paid over the above said amount shall be paid out of current appropriation / General Reserve.
The Preference Share are not convertible in Equity. For terms of redemption Refer Note 30.

43
BHUSHAN STEEL LIMITED Annual Report 2015-16

(` in Lacs)
As at As at
31.03.2016 31.03.2015
NOTE-3 RESERVES & SURPLUS
Capital Redemption Reserve:
At Commencement of the year 693.34 693.34
Add: Transfer From Surplus - -
693.34 693.34
Capital Reserve:
At Commencement of the year 23276.22 23006.12
Add : Addition during the year (Refer Note 42) 538.43 270.10
23814.65 23276.22
Debenture Redemption Reserve :
At Commencement of the year 44762.50 44762.50
Add : Transfer From Surplus - -
44762.50 44762.50
Less : Transfer To General Reserve 8250.00 -
36512.50 44762.50
Securities Premium Reserve:
At Commencement of the year 329731.94 330785.68
Add : On Issue of Shares - 16628.28
Less : Utilised on Redemption of Preference Shares 37304.66 17682.02
292427.28 329731.94
General Reserve:
At Commencement of the year 496311.37 500050.00
Add : Transferred From Debenture Redemption Reserve 8250.00 -
Less: Interim Dividend on Redemption of Preference Shares (Refer Note 44) - 5.13
Less: Dividend Tax on Interim Dividend - 0.87
Less: Premium Paid on Redemption of Preference Shares* - 3732.63
504561.37 496311.37
Surplus :
At Commencement of the year (124270.06) 1112.74
Add: Net Profit / (Loss) for the Current Year (283936.71) (125382.80)
Net Surplus (408206.77) (124270.06)
449802.37 770505.31

*The premium paid on redemption of Preference Shares over the amount of security premium received on issue of preference shares has in absence of
profit for the same, being adjusted out of general reserve .

44
 Corporate overview Management reports financial statements

(` in Lacs)
As at As at
31.03.2016 31.03.2015
NOTE-4 LONG-TERM BORROWINGS
SECURED
Non Convertible Debentures 146050.00 203000.00
(Foot note 1 to 9 )
Term Loan
1. From Banks
- Foreign Currency Loans (Foot note 10) 890522.08 835468.93
- Rupee Loans (Foot note 11) 2335454.19 2072679.37
2. From Other
- Rupee Loans (Foot note 12) 60674.45 33594.83
Total (A) 3432700.72 3144743.13
UNSECURED
Term Loan
From Bank
- Rupee Loan 9765.00 -
Foreign Currency Loans
- From Foreign Banks (Foot note 13) 292.83 263.25
- From Others 3008.50 2704.63
Total (B) 13066.33 2967.88
Total (A+B) 3445767.05 3147711.01
Less: Current Maturity of Long Term Borrowings (Refer Note 47) 108380.20 54938.79
Less: Repayment Overdue on Long Term Borrowings (Refer foot Note 26) 104784.72 -
3232602.13 3092772.22
Foot Note:

(1) 12.00% Redeemable Non-Convertible 250 Debentures of ` 10 Lacs respectively commencing from the end of 4th year from the date
each outstanding on 31st March 2016 ` 2500 Lacs (Previous Year of allotment i.e 28.03.2013 and are Secured by first charge on pari
12.00% Redeemable Non-Convertible 250 Debentures of ` 10 Lacs passu basis on the fixed assets of the Company.
each outstanding on 31st March 2015 ` 2500 Lacs).Debentures
are redeemable at par in one bullet payment at the end of 10th (6) 11.75% Redeemable Non-Convertible 3000 Debentures of Rs10 Lacs
year from the date of allotment i.e 31.08.2012 and are Secured by each outstanding on 31st March 2016 ` 30000 Lacs (Previous Year
first charge on pari passu basis on the fixed assets of the Company 11.75% Redeemable Non-Convertible 3000 Debentures of ` 10 Lacs
offering minimum Fixed Asset Coverage Ratio of 1.25 times during each outstanding on 31st March 2015 ` 30000 Lacs) are redeemable
the tenure of debentures and personal guarantee of Sh. B.B.Singal & in three equal annual installments commencing from the end of 5th
Sh. Neeraj Singal. year from the date of allotment i.e 02.02.2012 and are Secured by
first charge on pari passu basis on the fixed assets of the Company.
(2) 12.50% Redeemable Non-Convertible 2000 Debentures of ` 10 Lacs
each outstanding on 31st March 2016 ` 20000 Lacs (Previous Year
12.50% Redeemable Non-Convertible 2000 Debentures of ` 10 Lacs (7) 12.00% Redeemable Non-Convertible 4750 Debentures of ` 10 Lacs
each outstanding on 31st March 2015 ` 20000 Lacs) are redeemable each outstanding on 31st March 2016 ` 4000 Lacs (Previous Year
in three equal annual installments commencing from the end of 5th 12.00% Redeemable Non-Convertible 4750 Debentures of ` 10 Lacs
year from the date of allotment i.e 30.08.2013 and are Secured by each outstanding on 31st March 2015 ` 47500 Lacs). Debentures are
first charge on pari passu basis on the fixed assets of the Company. redeemable at the end of 4th, 5th and 6th year in installments 35%,
35% & 30% respectively commencing at the end of 4th year from
the date of allotment i.e 31.08.2012.
(3) 12.00% Redeemable Non-Convertible 100 Debentures of ` 100
Lacs each oustanding on 31st March 2016 ` NIL (Previous Year (8) 10.50% Redeemable Non-Convertible 3000 Debentures of ` 10 Lacs
12% Redeemable Non Convertible Debentures of ` 100 Lacs each each outstanding on 31st March 2016 ` 30000 Lacs (Previous Year
oustanding on 31st March 2015 ` 10000 Lacs) (subordinate debt). 10.50% Redeemable Non-Convertible 3000 Debentures of ` 10 Lacs
each outstanding on 31st March 2015 ` 30000 Lacs). Debentures are
redeemable at par in three equal anuual installments commencing
(4) 11.50% Redeemable Non-Convertible 3500 Debentures of ` 10 Lacs from the end of 6th year from the date of allotment i.e 13.08.2010
each outstanding on 31st March 2016 ` 35000 Lacs (Previous Year and are Secured by first charge on pari passu basis on the fixed
11.50% Redeemable Non-Convertible 3500 Debentures of ` 10 Lacs assets of the Company.
each outstanding on 31st March 2015 ` 35000 Lacs) are redeemable
in three equal annual installments commencing from the end of 5th (9) 10.90% Redeemable Non-Convertible 1750 Debentures of ` 10 Lacs
year from the date of allotment i.e 04.01.2013 and are Secured by each outstanding on 31st March 2016 ` 14050 Lacs (Previous Year
first charge on pari passu basis on the fixed assets of the Company. 10.90% Redeemable Non-Convertible 1750 Debentures of ` 10 Lacs
each outstanding on 31st March 2015 ` 17500 Lacs) are redeemable
at par in four equal annual installments commencing from the end of
(5) 12.00% Redeemable Non-Convertible 1050 Debentures of ` 10 Lacs 5th year from the deemed date of allotment i.e 26.08.2010 and are
each outstanding on 31st March 2016 ` 10500 Lacs (Previous Year Secured by first charge on pari passu basis on the fixed assets of the
12.00% Redeemable Non-Convertible 1050 Debentures of ` 10 Lacs Company. Out of the above debentures of ` 925 Lacs could not be
each outstanding on 31st March 2015 ` 10500 Lacs) are redeemable redeemed during the year.
at the end of 4th,5th and 6th year in installments 35%,35% & 30%

45
BHUSHAN STEEL LIMITED Annual Report 2015-16

(10) Secured by first mortgage charge on all of the companys immovable Rate+2.00% and repayable in 24 quarterly installments commencing
& movable properties both present and future including movable from 24 Months after completion of the project as per terms
machinery, spares, tools & accessories (excluding specific charge stipulated in respective loan/facility agreement/s.Now these loans
created on favour of ECA Lenders), ranking pari passu inter-se, with have been structured under 5/25 flexible structuring scheme of
the trustee of Debenture holders subject to prior charges created RBI upto 25 years @ SBI Base Rate+2.50% p.a (presently 11.80%
in favour of banks on stocks,book debts etc. for securing borrowing p.a.)
for working capital requirement,except ` 26533 Lacs (Previous Year
` 25036 Lacs) secured by subsequent & subservient charge on (16) Foreign Currency Loans for Phase I & II of Orissa project was
movable assets. Out of the above, the ECA Loans of ` 265001 Lacs sanctioned at interest rate of EURIBOR + 0.45% (Presently 0.499%
(Previous Year ` 239255 Lacs) financed by ECA Lenders are secured p.a.) repayable in 20 Half Yearly Installments commencing from six
by first exclusive charge on the assets financed & personal guarantee Months after completion of the project as per terms stipulated in
of two promoter directors. Loans of ` 890522 Lacs (Previous Year respective loan/facility agreement/s.However in principle approval/
` 835469 Lacs) are guaranteed by the Personal Guarantee of two communication has been received for the deferment of the principal
promoter directors. installments.Now the revised payments will commence from HY2 of
FY 2018-19 in 10 equal semi annual installments.
(11) Secured by first mortgage charge on all of the companys immovable
& movable properties both present and future including movable (17) Domestic Loans sanctioned by SBI Syndication for Phase III of Orissa
machinery, spares, tools & accessories (excluding specific charge project was sanctioned at rate of interest of SBI Base Rate+2.50%
created in favour of ECA Lenders) ranking pari passu inter-se, with and repayable in 17 quarterly installments commencing from 18
the trustee of Debenture holders subject to prior charges created months after completion of the project as per terms stipulated in
in favour of banks on stocks,book debts etc. for securing borrowing respective loan/facility agreement/s.Now these loans have been
for working capital requirement,except ` NIL (Previous Year ` 15700 structured under 5/25 flexible structuring scheme of RBI upto 25
Lacs) secured by subsequent & subservient charge on movable years @ SBI Base Rate+2.50% p.a (presently 11.80% p.a.).
assets. Loans of ` 2281459 Lacs (Previous Year ` 1662104 lacs) are (18) Foreign Currency Loans for Phase III of Orissa project was
guaranteed by the Personal Guarantee of two promoter directors & sanctioned at interest rate of EURIBOR+1.50% ( Presently 1.506%
Loans of ` 53995 Lacs (Previous Year ` 410576 Lacs) are guaranteed p.a.) repayable in 20 half yearly installments commencing from 6
by the Personal Guarantee of One Promoter Director. Apart from Months after completion of the project as per terms stipulated in
this,Loans of ` 429910 Lacs are/to be secured by pledge of 26% respective loan/facility agreement/s.However in principle approval/
shares of Bhushan Steel Limited and Loans of ` 1589229 Lacs are/to communication has been received for the deferment of the principal
be secured by pledge of 51% shares of Bhushan Steel Limited. installments.Now the revised payments will commence from HY2 of
FY 2018-19 in 16 equal semi-annual installments.
(12) Secured by first mortgage charge on all of the companys immovable (19) Another Foreign Currency Loan sanctioned for Phase III of the
& movable properties both present and future including movable Orissa Project at interest rate of USD LIBOR+3.95% repayable in 6
machinery, spares, tools & accessories (excluding specific charge annual installments commencing from 36 Months after completion
created in favour of ECA Lenders) ranking pari passu inter-se, with of the project as per terms stipulated in respective loan/facility
the trustee of Debenture holders subject to prior charges created in agreement/s.
favour of banks on stocks,book debts etc. for securing borrowing for
working capital requirement,except ` 931 Lacs (Previous Year `1345 (20) Another Foreign Currency Loan sanctioned for Phase III of the Orissa
Lacs) secured by subsequent & subservient charge on movable Project at interest rate of Euribor+1.75% (Presently 2.055% p.a.)
assets. Loans of ` 58722 Lacs (Previous year ` 30000 Lacs) are repayable in 18 half yearly installments commencing from three
guaranteed by the Personal Guarantee of Two Promoter Directors Months after completion of the project as per terms stipulated in
& Loans of ` 1021 Lacs (Previous Year ` 2250 Lacs) are guaranteed respective loan/facility agreement/s.However in principle approval/
by the Personal Guarantee of One Promoter Director. Apart from communication has been received for the deferment of the principal
this,Loans of ` 8958 Lacs are/to be secured by pledge of 51% shares installments.Now the revised payments will commence from HY2 of
of Bhushan Steel Limited. FY 2018-19 in 15 equal semi annual installments.

(13) Out of these Loans of ` 293 Lacs (Previous Year ` 263 Lacs) are (21) Domestic Loans sanctioned for Coke Oven 2 of Orissa project was
guaranteed by the Personal Guarantee of Two Promoter Directors. sanctioned at rate of interest of Base Rate+2.50% and repayable
in 24 quarterly installments commencing from 15 Months after
*This includes ` 55932 Lacs on account of ECA loans for which in completion of the project as per terms stipulated in respective
principle approval for restructuring is already received. This default loan/facility agreement/s.Now these loans have been structured
will be automatically removed on receiving of final approval for under 5/25 flexible structuring scheme of RBI upto 25 years @ Base
restructuring from ECA Lenders. Rate+1.75% p.a (presently 11.60% p.a.).
Detail of Repayment and Rate of Interest (22) Foreign Currency Loans for Coke Oven 2 of Orissa Project was
Rate of Interest: All Rupee Term Loans are linked to the Benchmark sanctioned at interest rate of USD LIBOR + 4.50% repayable in
Rate/Base Rate of the respective lenders on floating basis.All Foreign 12 half yearly installments commencing from 15 Months after
Currency Loans are linked to the LIBOR Rates of different lenders on completion of the project as per terms stipulated in respective loan/
floating basis. facility agreement/s.Now these loans have been structured under
5/25 flexible structuring scheme of RBI upto 25 years.
(14) Maturity Profile of Long Term Borrowing (Other than NCDs) are set
out as below: (23) Domestic Loans sanctioned for CRCA & CRNGO Project of Orissa
project was sanctioned at rate of interest of Base Rate+2.25% and
(` in Lacs) repayable in 24 quarterly installments commencing from 12 Months
after completion of the project as per terms stipulated in respective
Already 1 year 2-3 Years Beyond 3 loan/facility agreement/s.Now these loans are being considered in
Due years 5/25 flexible structuring scheme of RBI upto 25 years. Now these
loans have been structured under 5/25 flexible structuring scheme
Term Loans 103860 78930 204965 2911963 of RBI upto 25 years @ Base Rate+2.00% p.a. (11.85% p.a. at
present).
(15) Domestic Loans sanctioned by SBI Syndication for Phase I & II
of Orissa project was sanctioned at rate of interest of SBI Base (24) Domestic Loans sanctioned for Addition,Modification & Replacement
Project at Orissa Site was sanctioned at rate of interest of Base

46
 Corporate overview Management reports financial statements

Rate+TP+1.25% and repayable in 32 quarterly installments commencing from 3 Months after completion of the project as per terms stipulated
in respective loan/facility agreement/s.Now these loans are being considered in 5/25 flexible structuring scheme of RBI upto 25 years. Now these
loans have been structured under 5/25 flexible structuring scheme of RBI upto 25 years @ SBI Base Rate+2.50% p.a. (11.80% p.a. at present).
(25) Domestic Loans sanctioned for shoring up of Net Working Capital/Normal Capital Expenditure was sanctioned at rate of interest of SBI Base
Rate+2.50% (Presently 11.80% p.a.) and repayable in 40 quarterly installments commencing from 30th June 2016, as per terms stipulated in
respective loan/facility agreement/s.
Rate of interests of other Term Loans/Foreign Currency Loans are linked with the Base Rate/LIBOR of the respective lenders.
(26) Rapayment default on Long Term Borrowings

(` in Lacs)
Principal Interest
Amount Amount
SECURED
Non Convertible Debentures 925.00 20638.12
Term Loan
1. From Banks
- Foreign Currency Loans 82719.91 13267.19
- Rupee Loans 19641.33 95057.18
2. From Others
- Rupee Loans 1205.65 1803.13
Total (A) 104491.89 130765.62
UNSECURED
Term Loan
From Bank
- Rupee Loan - 192.91
Foreign Currency Loans
- From Others 292.83 1.12
Total (B) 292.83 194.03
Total (A+B) 104784.72 130959.65

As at As at
31.03.2016 31.03.2015
NOTE-5 DEFERRED TAX LIABILITIES (NET)
Deferred Tax Liability (Refer Note 51)
Related to Fixed Assets 105669.93 138933.41
Total (A) 105669.93 138933.41
Deferred Tax Assets
Business Loss (As per Income Tax Act) 39606.83 -
Provision of Doubtful Debts 885.56 540.55
Others 1218.28 985.67
Total (B) 41710.67 1526.22
Total (A-B) 63959.26 137407.19

NOTE-6 OTHER LONG-TERM LIABILITIES

Liability for Capital Goods / Expenditure 51134.89 55774.25
Security Deposit Received from Customers 82.92 74.75
Others* 12357.39 7681.01
63575.20 63530.01

*Others include Insurance claim received , security deposit received and amount hold from contractors.

47
BHUSHAN STEEL LIMITED Annual Report 2015-16

(` in Lacs)
As at As at
31.03.2016 31.03.2015
NOTE-7 SHORT-TERM BORROWINGS
SECURED
Working Capital Loans
From Banks
Cash Credit
- Foreign Currency Loans (Foot note 1) 51900.14 31570.31
- Rupee Loans (Foot note 1) 924910.04 666181.38
Total (A) 976810.18 697751.69
UNSECURED
From Bank
Rupee Loan
- Term Loan 5080.00 13645.00
Foreign Currency Loans
- From Indian Banks (Buyers Credit) 21060.26 48757.76
Total (B) 26140.26 62402.76
Total (A+B) 1002950.44 760154.45
Foot Note :
(1) Working Capital Loans are secured by hypothecation of stock & book debts,second charge on companys land,building and other immovable properties
ranking pari passu inter-se and personal guarantee of two promoter directors.
(2) The Company is enjoying working capital facility of ` 1260000 Lacs (funded and non funded) and there is outstanding of ` 976810.18 Lacs as on 31st
March, 2016, which includes overdrawn amount of ` 388595 Lacs.

NOTE-8 TRADE PAYABLES

Micro,Small and Medium Enterprises 404.62 539.03
Others 117223.72 273375.60
117628.34 273914.63
The detail of amount outstanding to Micro, Small and Medium Enterprises based on available information
with the company is as under:
Particulars
Principal amount due and remaining unpaid - -
Interest due on above and the unpaid interest - -
Interest Paid - -
Payment made beyond the appointed day during the year - -
Interst due and payable for the period of delay - -
Interest accrued and remaining unpaid - -

NOTE-9 OTHER CURRENT LIABILITIES

Current Maturities of Long Term Debts 108380.20 54938.79
Repayment Overdue on Long Term Debts 103859.72 -
Unpaid matured non convertible debentures including interest accrued 985.50 -
Interest Accrued & Due on borrowings 144649.00 45006.67
Interest Accrued but not due on borrowings 12713.06 33978.72
Unclaimed Dividend * 14.93 16.76
Statutory Dues 45499.21 19009.13
Due to Subsidiary Co. 1321.97 -
Due to Directors 24.21 17.03
Due to Officers 1.58 1.46
Liability for Capital Goods / Expenditure** 9867.58 9658.62
Other Payables (Refer Note No.50) 31871.28 9441.69
459188.24 172068.87
* Do not include any amounts, due and outstanding, to be credited to Investors Education and Protection Fund.
**Includes ` 35.05 Lacs (Previous Year ` 1.34 Lacs) on account of Micro, Small & Medium Enterprises and ` 19.99 Lacs on account of interest thereon.

NOTE-10 SHORT TERM PROVISIONS

Provision for Employee Benefits 3520.24 2848.10
3520.24 2848.10

48
 Corporate overview Management reports financial statements

NOTE-11 FIXED ASSETS

(` in Lacs)
DESCRIPTION GROSS BLOCK DEPRECIATION / AMORTIZATION NET BLOCK
OF ASSETS Cost as at Addition Sale/ Adjustment Cost as at As at During Written Adjustment Upto As at As at
01.04.2015 During Discarded During 31.03.2016 01.04.2015 the Year Back During 31.03.2016 31.03.2016 31.03.2015
the Year During the Year During the Year
the Year the Year
Tangible Assets

Freehold Land 24279.55 - - - 24279.55 - - - - - 24279.55 24279.55

Leasehold Land 20578.62 - - - 20578.62 211.21 14.63 - - 225.84 20352.78 20367.41
Building 702422.92 - - - 702422.92 66587.74 20660.04 - - 87247.78 615175.14 635835.18
Railway Siding 91600.04 - - - 91600.04 10857.32 5946.69 - - 16804.01 74796.03 80742.72
Plant & Equipment 3311169.68 36473.97 1273.62 65676.77 3412046.80 423446.74 81072.11 1255.05 - 503263.80 2908783.00 2887722.94
Furniture & Fixtures 5749.93 45.29 7.74 - 5787.48 931.24 556.65 1.65 - 1486.24 4301.24 4818.69
Vehicles 4548.58 161.08 117.53 - 4592.13 2742.91 481.59 101.10 - 3123.40 1468.73 1805.67
Office Equipments 1283.99 56.54 0.21 - 1340.32 538.52 234.78 0.18 - 773.12 567.20 745.47
Tangible Assets 4161633.31 36736.88 1399.10 65676.77 4262647.86 505315.68 108966.49 1357.98 - 612924.19 3649723.67 3656317.63
Total (A)
Intangible Assets
Computer Software 749.80 7.99 - - 757.79 710.77 39.36 - - 750.13 7.66 39.03
Assets Not Owned 5824.44 968.59 - - 6793.03 5824.44 968.59 - - 6793.03 - -
by Company
Intangible Assets 6574.24 976.58 - - 7550.82 6535.21 1007.95 - - 7543.16 7.66 39.03
Total (B)
TOTAL (A+B) 4168207.55 37713.46 1399.10 65676.77 4270198.68 511850.89 109974.44 1357.98 - 620467.35 3649731.33 3656356.66
Previous Year 2611499.97 1025549.91 98095.88 629253.55 4168207.55 424273.92 95378.72 3218.15 4583.60 511850.89
Capital Work in Progress 286889.86 251184.10
[Includes Pre-operative expenses]
GRAND TOTAL 3936621.19 3907540.76

Notes:
1. Certain Building Under Posession of the Company are pending registration in the name of the Company.
2. No write off has been done for lease hold land acquired on lease of 90 years and more.
3. Depreciation for the year includes ` NIL (Previous Year ` 1538.87 Lacs) charged to Capital Work In Progress.
4. Adjustment during the year includes addition of ` 65676.77 Lacs (Previous Year ` 633837.15 Lacs) on account of borrowing cost / exchange fluctuation and
deduction of ` NIL (Previous Year ` 4583.60 Lacs) for depreciation capitalised during installation period.

(` in Lacs)
As at 31.03.2016 As at 31.03.2015
NOTE-12 NON-CURRENT INVESTMENTS
(Long-Term, Fully Paid Up)
In Equity Shares
Non Trade, Quoted
Tata Steel Ltd.
13,500 (Previous Year 13,500) Equity Shares of ` 10/- each 58.08 58.08
58.08 58.08
UNQUOTED
Bhushan Buildwell Pvt. Ltd.
4,900 ( Previous Year 4,900) Equity Shares of ` 10/- each 0.49 0.49
Saraswat Co-operative Bank Ltd.
2,500 (Previous Year 2,500) Equity Shares of ` 10/- each 0.25 0.25
0.74 0.74
Trade, Unquoted
In Associates
Bhushan Energy Limited
6,50,00,000 (Previous Year 6,50,00,000) Equity Shares of ` 10/- 35000.00 35000.00
each
Angul Sukinda Railway Ltd.
Nil Share (Previous Year 8,40,00,000) Equity Share of ` 10/- Each - 1000.00
Paid up @ ` 1.19 Each
Less: Dimuniation in the value of Investment (Refer Note 31) - 1000.00
- -
Jawahar Credit & Holdings Private Limited
86,43,742 (Previous Year 86,43,742) Equity Shares of ` 10/- each 940.31 940.31

49
BHUSHAN STEEL LIMITED Annual Report 2015-16

(` in Lacs)
As at 31.03.2016 As at 31.03.2015
Bhushan Capital & Credit Services Private Limited
86,43,742 (Previous Year 86,43,742) Equity Shares of ` 10/- each 940.31 940.31
In Joint Ventures
Andal East Coal Company Pvt. Ltd.
3,30,000(Previous Year 3,30,000) Equity Shares of ` 10/- each 145.50 145.50
In Subsidiaries
Bhushan Steel (Australia) Pty Ltd.
4,73,69,796 (Previous Year 4,73,69,796 ) Ordinary Shares of One 24441.85 24441.85
AUD Per Share
Bhushan Steel Madhya Bharat Limited
49,990 (Previous Year 50,000) Equity Shares of ` 10/- each 5.00 5.00
Bhushan Steel (Orissa) Limited
49,990 (Previous Year 50,000) Equity Shares of ` 10/- each 5.00 5.00
Bhushan Steel (South) Limited
50,000 (Previous Year 50,000) Equity Shares of ` 10/- each 5.00 5.00
In Others
Bhushan Steel Bengal Limited
50,000 (Previous Year 50,000) Equity Shares of ` 10/- each 5.00 5.00
61487.97 61546.79 61487.97 61546.79
61546.79 61546.79

Aggregate Value of Book Value Market Value Book Value Market Value
Quoted Investments 58.08 43.13 58.08 42.77
Unquoted Investments 61488.71 - 61488.71 -

NOTE-13 LONG-TERM LOANS AND ADVANCES

(Unsecured, considered good)
Capital Advances 17250.69 55361.97
Security Deposits 13466.24 13184.88
Advances for Non Current Investment to Related Parties 523.75 520.50
Loans to Employees 123.88 167.95
MAT Recoverable 80605.55 80605.55
Advance Tax (Net) 2328.43 1784.61
Excise Duty Recoverable / Service Tax Recoverable 1501.02 655.57
Other Advances* 240.62 342.73
116040.18 152623.76
*Other Advances Include Advance Recoverable from Sales Tax Department etc.

NOTE-14 OTHER NON CURRENT ASSETS

Non Current Fixed Deposits
- Non Current Fixed Deposits (Refer Note 17) 2440.14 2459.23
Other Receivable (Refer Note 46) 56289.96 -
58730.10 2459.23

NOTE-15 INVENTORIES
(At Lower of Cost And Net Realisable Value)
Raw Material 26063.05 32822.19
Raw Material In Transit 652320.01 509345.90
Finished Goods 48318.96 64753.13
Finished Goods In Transit 4208.36 3069.87
Work-in-Progress 53811.40 33564.69
Work-in-Progress In Transit 10043.70 10337.12
Stores 78373.10 73500.29
Stores In Transit 967.99 -
Other 6751.86 4730.12
880858.43 732123.31

50
 Corporate overview Management reports financial statements

(` in Lacs)
As at As at
31.03.2016 31.03.2015
NOTE-16 TRADE RECEIVABLES
(Unsecured )
More than Six Months
- Considered Good 4938.05 5257.02
- Considered Doubtful 2558.85 1561.93
7496.90 6818.95
Less: Provision 2558.85 1561.93
4938.05 5257.02
Others - Considered Good 230177.68 234571.53
235115.73 239828.55

NOTE-17 CASH AND BANK BALANCES

(A) Cash and Cash Equivalants
Balances with Banks
- In Current Account 3099.27 7563.24
- In Unpaid Dividend Account 14.93 16.76
Fixed Deposits having maturity period within 3 months * - 35.52
Cash on Hand 89.73 88.44
(B) Others
Fixed Deposits having maturity period :-
- For more than 12 Months * 3103.93 3395.33
- 3 to 12 Months * 12464.81 44.15
18772.67 11143.44
Less : Non Current Fixed Deposit 2440.14 2459.23
16332.53 8684.21
*( Including interest accrued but not due )
*{Including ` 15568.74 Lacs (Previous Year ` 3474.50 Lacs) under bank lien}

NOTE-18 SHORT-TERM LOANS & ADVANCES

(Unsecured, considered good)
Security Deposits 9049.39 9033.09
Loans to Employees 337.72 499.45
Balance with Excise Department 13.70 44.62
Excise Duty / Service Tax Recoverable 23852.03 25696.55
Inter Corporate Deposit (Including Interest Accrued) 1916.45 3689.65
Other Advances * 74472.15 84558.36
109641.44 123521.72
*Include Amount Recoverable from Sales Tax Department, advance to suppliers etc. and ` 24.55 Lacs (Previous Year ` NIL) receivable from related Party.

NOTE-19 OTHER CURRENT ASSETS

Receivable against sale of Fixed Assets 1019.92 62423.92
1019.92 62423.92

51
BHUSHAN STEEL LIMITED Annual Report 2015-16

(` in Lacs)
Year Ended 31.03.2016 Year Ended 31.03.2015
NOTE-20 REVENUE FROM OPERATION
Sales of Products 1267674.00 1117171.81
Other operating Revenues
Other Sale 41198.12 51543.89
Export Incentives 3534.65 4786.02
1312406.77 1173501.72
PARTICULARS OF SALE OF PRODUCTS
Hot Rolled Steel Strips / Sheets / Coils 502414.12 357327.53
Cold Rolled Steel Strips / Sheets / Coils 267742.86 260687.69
Cold Rolled Galvanised Steel Strips / Sheets / Coils 275478.52 257750.43
Colour Coated Galvanised Steel Strips / Sheets / Coils 89098.18 102488.78
Precesion Tubes 84047.09 81218.58
Large Dia Pipe 12146.52 14237.56
Hardening & Tempring Cold Rolled Steel Strips 16651.60 17339.02
High Tensile Steel Strapings 3632.33 4801.44
Billets 16186.26 20948.59
Formed Section 276.52 372.19
Others 41198.12 51543.89
Export Incentives 3534.65 4786.02
1312406.77 1173501.72

NOTE-21 OTHER INCOME

Interest Earned*
- From Bank on FDRs 611.08 305.40
- From Others 717.22 1328.30 496.12 801.52
Dividend:
- From Long Term, Non Trade Investments 0.04 1.38
Profit on Sale of Fixed Assets (Net) 861.35 486.77
Miscellaneous Income (Refer Note 41)** 93.57 61.04
2283.26 1350.71
*Including Income Tax Deducted at Source ` 50.31 Lacs (Previous Year ` 29.89 Lacs) and Excluding interest earned of ` Nil (Previous Year ` 317.72
Lacs) transferred to Projects.
**Including Income Tax Deducted at source ` 0.95 Lacs (Previous Year ` 0.50 Lacs)

NOTE-22 COST OF RAW MATERIAL CONSUMED

Cost of Raw Material Consumed 657167.29 570940.93
Less : Cost of Raw Material Transferred to Project / Internal Use 2283.89 2473.02
654883.40 568467.91
PARTICULARS OF MATERIALS CONSUMED
HR / CR / Steel Scrap 189592.60 166011.83
Iron Ore / Sponge Iron 149181.15 129304.61
Coal 225573.24 199157.28
Dolomite / Lime 31219.56 19298.12
Zinc and Alloys 52081.92 47790.73
Paints 9518.82 9378.36
657167.29 570940.93

NOTE-23 PURCHASE OF GOODS TRADED

Purchase of Goods Traded 259.11 4831.81
259.11 4831.81

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 Corporate overview Management reports financial statements

(` in Lacs)
Year Ended 31.03.2016 Year Ended 31.03.2015
NOTE-24 CHANGE IN INVENTORIES OF FINISHED GOODS,
WORK-IN-PROGRESS AND STOCK IN TRADE
Inventories (at Close)
Finished Goods 52527.32 67823.00
Work-in-Progress 63855.10 43901.81
Others 6751.86 4730.12
123134.28 116454.93
Inventories (at Beginning)
Finished Goods 67823.00 52651.75
Work-in-Progress 43901.81 81628.87
Others 4730.12 3940.81
116454.93 138221.43
(6679.35) 21766.50

DETAIL OF FINISHED GOODS Closing Stock Opening Stock Closing Stock Opening Stock
Hot Rolled Steel Strips / Sheets / Coils 17588.26 28519.92 28519.92 5870.94
Cold Rolled Steel Strips / Sheets / Coils 10594.84 12775.30 12775.30 12432.44
Cold Rolled Galvanised Steel Strips / Sheets / Coils 12348.40 14147.92 14147.92 15573.15
Colour Coated Galvanised Steel Strips / Sheets / Coils 3412.35 3225.49 3225.49 6940.74
Precision Tubes 5643.02 5482.62 5482.62 5936.71
Large Dia Pipe 1555.94 2039.09 2039.09 2961.80
Hardened & Tempered Cold Rolled Steel Strips 696.52 750.74 750.74 1277.54
High Tensile Steel Strapings 137.05 413.44 413.44 356.74
Billets 544.80 464.60 464.60 1289.42
Formed Sections 6.14 3.88 3.88 12.27
52527.32 67823.00 67823.00 52651.75

NOTE-25 EMPLOYEE BENEFITS EXPENSE

Salary,Wages & Bonus 43249.42 33011.22
Contribution to P.F. and Other Funds 1161.77 1011.38
Staff Benefits 410.66 399.18
44821.85 34421.78
Less : Expenses Transferred to Project Under Commissioning / Pre 1574.09 8668.89
Operative Expenses
43247.76 25752.89

NOTE-26 FINANCE COSTS

Interest Expenses 465462.20 448287.19
Other Financial Cost 14480.76 15590.12
Applicable loss on foreign currency transactions and translation 1257.26 1367.88
481200.22 465245.19
Less: Borrowing cost transferred to Project Under Commissining / 22970.08 215842.62
Trial Run
458230.14 249402.57

53
BHUSHAN STEEL LIMITED Annual Report 2015-16

(` in Lacs)
Year Ended Year Ended
31.03.2016 31.03.2015
NOTE-27 OTHER EXPENSES
Stores Consumed 40325.41 31602.17
Packing Material Consumed 5113.76 4315.09
Power & Fuel 122925.99 124261.83
Repairs & Maintenance
- Plant & Machinery 3534.41 2852.29
- Buildings 187.16 303.51
Exchange Fluctuation (Net) 2610.13 579.80
Excise Duty # (1630.22) 2965.89
Rates & Taxes 903.29 3701.21
Administrative Expenses 13207.79 18948.41
Legal & Professional Expenses 1112.28 829.41
Rent 22391.00 5895.46
Insurance 1830.75 2136.75
Auditors' Remuneration 118.50 160.25
Selling & Distribution Expenses 75288.40 50208.35
Commission to Selling Agents 500.05 503.58
Bad Debts Written off 0.28 123.23
Provision for Doubtful Debts 996.92 260.49
289415.90 249647.72
Less: Transferred to Project under Commissioning,
Pre-operative Expenses / Trial Run Expenses (Net) 9400.14 23286.61
280015.76 226361.11
# Excise Duty shown under expenditure represents the aggregate of excise duty borne by the company and difference between excise duty on opening
and closing stock of finished goods.

NOTE-28 EXCEPTIONAL ITEMS (Refer Note 31)

Dimuniation in the value of Investment - 1000.00
Investment written off 1,000.00 -
Provision of Investment written back (1,000.00) -
(Long term, Trade, in associate)
- 1000.00

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 Corporate overview Management reports financial statements

NOTE - 29 (` in Lacs)

Current Year Previous Year
1. Contingent Liabilities in respect of :
a) Sales Tax 95501.41 36455.50
b) Excise Duty/Custom/Service Tax 56662.49 34455.01
c) Entry Tax 70452.33 29924.16
d) Income Tax 16927.90 17274.63
e) Bills Discounted 10531.46 10806.35
f) Others 10276.46 4577.53
g) Undeclared Dividend including Dividend Distribution Tax on 2827.91 1089.71
Cumulative Redeemable Preference Shares
h) Claims / Disputed Bills not acknowledged 27577.83 -
i) Water Conservation Fund 11500.00 -

2. Capital Commitment year 2012-13 on private placement basis. The Preference Shares
Estimated amount of contracts remaining to be executed on capital are redeemable at a premium of `2900/- per share on or before the
account and not provided for `51329.28 Lacs (Previous Year expiry of ten years from the date of allotment i.e. 25th March, 2013.
`83322.86 Lacs) (Net of Advances).
f) 10% 366667 Redeemable Cumulative Preference Shares of `100/-
3. Other Commitment each are allotted at a price of `3000/- per share during the financial
a) Outstanding guarantees issued by the banks `304087.73 Lacs year 2011-12 on private placement basis. The Preference Shares are
(Previous Year `371863.79 Lacs) counter guaranteed by the redeemable at a premium of `2900/- in two equal installments at the
company including letter of credits issued. end of 3rd and 4th year i.e. on 4th March, 2015 and 4th March, 2016
b) The Company from time to time provides need based support respectively. However, due to non submission of preference share
to its subsidiary Bowen Energy PTY Limited (Australia) towards certificate by the shareholder, M/s Robust Transportation Pvt. Ltd.,
capital and other requirements. preference shares could not be redeemed. M/s Robust Transportation
c)  Commitment for partly paid equity shares of Angul Sukinda Pvt. Ltd., vide their letter dated 1st March, 2015 and 1st March, 2016,
Railway Limited, an associate company `Nil (Previous Year has requested to defer the redemption of the preference shares as
`7400.00 Lacs). the same has been pledged with banker as security against the loan
There is no present obligation arising from past events requiring
4.  taken by it.
provision in accordance with the guiding principle as enunciated in
Accounting Standard (AS)- 29, as it is not probable that an outflow of g) 10% 460000 Redeemable Cumulative Preference Shares of `100/-
resources embodying economic benefit will be required. each are allotted at a price of `2500/- per share during the financial
year 2011-12 on private/preferential placement basis. The Preference
NOTE 30 Shares will be redeemed at any time within a period of ten years from
a) 12% 6500000 Redeemable Cumulative Preference Shares of `100/- the date of allotment i.e. 29th March, 2012. During the Year 460000
each are allotted at a price of `100/- per share during the financial Preference Shares have been redeemed at a premium of ` 2400/- par
year 2015-16 on private placement basis. The Preference Shares are share.
redeemable at `100/- per share on or before the expiry of ten years
from the date of allotment. h) 10% 1800000 Redeemable Cumulative Preference Shares of `100/-
each are allotted at a price of `2500/- per share during the financial
b) 10% 133400 Redeemable Cumulative Preference Shares of `100/- year 2011-12 on private/preferential placement basis. The Preference
each are allotted at a price of `3000/- per share during the financial Shares are redeemable at a premium of `2400/- before the expiry of
year 2014-15 on private placement basis. The Preference Shares ten years from the date of allotment i.e. 30th March, 2012. During
are redeemable at a premium of `2900/- per share on or before the the Year 33119 (upto Previous Year 1200000) Preference Shares have
expiry of ten years from the date of allotment. During the Year 84001 been redeemed at a premium of `2400/- per share.
Preference Shares have been redeemed at a premium of `2900/- per
share. i) 10% Redeemable Cumulative Preference Shares of `100/- each are
allotted at a price of `3000/- per share during the financial year
c) 10% 723400 Redeemable Cumulative Preference Shares of `100/- 2010-11 on private placement basis. The Preference Shares are
each are allotted at a price of `3000/- per share during the financial redeemable at a premium of `2900/- before the expiry of ten years
year 2013-14 on private placement basis. The Preference Shares from the date of allotment i.e. 30th March, 2011 for 1500300 shares.
are redeemable at a premium of `2900/- per share on or before During the financial Year 2013-14, 560067 Preference Shares have
the expiry of ten years from the date of allotment. During the Year been redeemed at a premium of `2900/- per share.
505200 Preference Shares have been redeemed at a premium of
`2900/- per share. j) 10% Redeemable Cumulative Preference Shares of `100/- each are
allotted at a price of `3000/- per share during the financial year 2009-
d) 10% 1276700 Redeemable Cumulative Preference Shares of `100/- 10 on private/preferential placement basis. The Preference Shares
each are allotted at a price of `3000/- per share during the financial are redeemable at a premium of `2900/- before the expiry of ten
year 2012-13 on private placement basis against the share application years from the date of allotment i.e. 29th January, 2010 and 31st
money received during the financial year 2011-12 amounting to March, 2010 for 1334800 and 2333500 shares respectively. During
`38301.00 Lacs. The Preference Shares are redeemable at a premium the Year 237418 (upto Previous Year 133267) Preference Shares have
of `2900/- per share on or before the expiry of ten years from the date been redeemed at a premium of `2900/- per share.
of allotment i.e. 1st March, 2013. During the Year 51650 Preference
Shares have been redeemed at a premium of `2900/- per share. 25% 800000 Non Convertible Cumulative Redeemable Preference
k) 
Shares of `100/- each are allotted at a price of `2500/- per share
e) 10% 333400 Redeemable Cumulative Preference Shares of `100/- during the financial year 2010-11 on private placement basis. The
each are allotted at a price of `3000/- per share during the financial preference shares are redeemable at a price that shall give aggregate

55
BHUSHAN STEEL LIMITED Annual Report 2015-16

yield to the holders of 1% accrued on day to day basis on the face NOTE 34
value together with the premium of the preference shares, within As per Accounting Standard (AS)-18, the disclosure of transaction
48 Months from the date of allotment i.e 28th March, 2011 in such with related parties as defined in the Accounting Standard are
trenches as stipulated in the subscription agreement. Upto Previous given below :
Year 800000 Preference Shares have been redeemed at a premium of
`2400/- per share. (I) List of related parties where control exists and related parties
with whom transactions have taken place and relationships:
l) 
4% 900000 Non Convertible Cumulative Redeemable Preference
Shares of `100/- each are allotted at a price of `2500/- per share a) Subsidiary companies
during the financial year 2010-11 on private placement basis. The Bhushan Steel (Orissa) Ltd.
Preference Shares shall be redeemed at an amount in INR, such Bhushan Steel Madhya Bharat Ltd.
that the subscribers get yield of 14% per annum on the amount Bhushan Steel (South) Ltd.
outstanding within 36 Months from the date of allotment, i.e 29th Bhushan Steel (Australia) PTY Ltd.
March, 2011 in such trenches as stipulated in the subscription -Bowen Energy PTY Ltd., Australia
agreement. The same has been further extended for three months i.e -Kondor Holdings PTY Ltd. (deregistered on 24.09.2015)
upto 29th June, 2014. Upto Previous Year 900000 Preference Shares -Bowen Coal PTY Ltd.
have been redeemed. -Bowen Consolidated PTY Ltd.
m) 2% 2085000 Redeemable Cumulative Preference Shares of `100/- -Golden Country Resources (Australia) PTY Ltd. (deregistered
each are allotted at a price of `600/- per share during the financial on 24.09.2015)
year 2014-15 on private placement basis. The Preference Shares are b) Joint Venture
redeemable at a premium of `500/- per share on or before the expiry Andal East Coal Company Pvt. Ltd.
of ten years from the date of allotment.
c) Associates
n) 2% 1400000 Redeemable Cumulative Preference Shares of `100/- Angul Sukinda Railway Ltd. (Shares forfeited, no more associate)
each are allotted at a price of `600/- per share during the financial Bhushan Energy Ltd.
year 2013-14 on private placement basis. The Preference Shares are Bhushan Capital & Credit Services Pvt. Ltd.
redeemable at a premium of `500/- per share on or before the expiry Jawahar Credit & Holdings Pvt. Ltd.
of ten years from the date of allotment.
d) Key Management Personnel
o) 1% 1167340 Redeemable Cumulative Preference Shares of `100/- Shri Neeraj Singal (Vice Chairman & Managing Director)
each are allotted at a price of `300/- per share during the financial Shri Nittin Johari (Whole time Director)
year 2014-15 on private placement basis. The Preference Shares are Shri P.K. Aggarwal (Whole time Director)
redeemable at a premium of `200/- per share on or before the expiry Shri Rahul Sengupta (Whole time Director)
of ten years from the date of allotment.
e) Relatives of Key Management Personnel
NOTE 31 Shri B.B. Singal (Non-Executive Chairman & Father of Vice
The Company made investment of `1000.00 Lacs in Equity Shares of Angul Chairman & Managing Director)
Sukinda Railway Limited for the construction of Rail line between Talcher Smt. Ritu Singal (Wife of Vice Chairman & Managing Director)
Road in Angul District to Bhaguapal in Jajpur along with other parties. As
the project did not made any headway, the Company refused to pay the f) Enterprises over which Key Management Personnel are
call money of `1540.00 Lacs plus interest. Angul Sukinda Railway Limited able to exercise significant influence
issued final call notice for payment of unpaid call money failing which the Bhushan Aviation Ltd.
shares were liable to be forfeited. The Company disputed the call money Bhushan Infrastructure Pvt. Ltd.
which in its opinion was premature, illegal and arbitrary and advised Angul
Sukinda Railway Limited to withdraw said notice. Provision for diminution g) 
Enterprise over which relatives of Key Management
in the value of Investment was made in last year for `1000.00 Lacs. As Personnel are able to exercise significant influence
the shares have been forfeited, the investment has been written off during Bhushan Power & Steel Limited
the year.
NOTE 32
The Company has during the year commissioned Lime Klin 600 TPD, Track
Hopper and other ancillary plants.
NOTE 33
Auditors Remuneration includes :
(` in Lacs)
Particulars Current Year Previous Year
Audit Fees 100.00 110.00
Tax Audit Fees 18.50 20.50
Certification Fees - 15.00
Other Services - 14.75
118.50 160.25

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 Corporate overview Management reports financial statements

(II) Transactions Carried out with related parties referred in (I) above, in ordinary course of business:
(` In Lacs)
PARTICULARS Subsidiary Joint Associates Key Relatives Enterprises Grand
Companies Venture Management of KMP over which Total
Personnel KMP & their
(KMP) relatives
have
significant
influence
Remuneration and Perks Current Year - - - 476.47 95.31 - 571.78
Previous Year - - - 410.02 68.60 - 478.62
Directors Sitting Fees Current Year - - - - 8.82 - 8.82
Previous Year - - - - 8.60 - 8.60
Investments in Share Capital/ Current Year - 3.25 - - - - 3.25
Share Application Money
Previous Year 223.36 25.00 - - - - 248.36
Allotment of Shares / Share Current Year - - - - - - -
Application Money Pending
Previous Year - - - 5542.02 1329.00 2133.00 9004.02
Allotment
Redemption of Preference Current Year - - - 11022.03 6654.00 2088.00 19764.03
Share Capital
Previous Year - - - - - - -
Purchase of Goods/ Services Current Year - - 62172.38 - - 1853.00 64025.38
Previous Year - - 36115.80 - - 1512.00 37627.80
Sales of Goods/ Services Current Year - - 7031.28 - - 3918.62 10949.90
Previous Year - - 17400.09 - - - 17400.09
Security Deposit Paid Current Year - - - - - - -
Previous Year - - 9000.00 - - - 9000.00
Provision for diminution of Current Year - - - - - - -
Investment
Previous Year - - 1000.00 - - - 1000.00
Investment written off Current Year - - 1000.00 - - - 1000.00
Previous Year - - - - - - -
Payment made on behalf of Current Year 1321.97 - - - - - 1321.97
co.
Previous Year - - - - - - -
OUTSTANDINGS
Trade Receivable Current Year - - - - - 35.08 35.08
Previous Year - - - - - - -
Other Receivable Current Year - - - - - 24.55 24.55
Previous Year - - - - - - -
Payable Current Year 1321.97 - 511.69 22.23 1.98 99.07 1956.94
Previous Year - - 425.25 17.03 - 174.55 616.83
Security Deposit Receivable Current Year - - 9000.00 - - - 9000.00
Previous Year - - 9000.00 - - - 9000.00
Provision for diminution of Current Year - - - - - - -
Investment
Previous Year - - 1000.00 - - - 1000.00
Share Application Money Current Year - 523.75 - - - - 523.75
Pending Allotment
Previous Year - 520.50 - - - - 520.50
Disclosure in Respect of Material Related Party Transactions during the year :
1. Remuneration & Perks include payment to Shri Neeraj Singal `146.07 Lacs (Pre. Year `144.66 Lacs), Shri P.K.Aggarwal `95.92 Lacs (Pre.Year `75.56
Lacs), Shri Nittin Johari `138.78 Lacs (Pre. Year `114.40 Lacs), Shri Rahul Sengupta `95.70 Lacs (Pre. Year `75.40 Lacs), and Smt. Ritu Singal
`95.31 Lacs (Pre. Year `68.60 Lacs).
2. Directors sitting fees is paid to Shri B.B.Singal `8.82 Lacs (Pre. Year `8.60 Lacs ) .
3. Investment in Share Capital/ Share Application Money include Bhushan Steel (Australia) PTY Ltd. `Nil Lacs (Pre. Year `223.36 Lacs), Andal East Coal
Company Pvt. Ltd. `3.25 Lacs (Pre. Year `25.00 Lacs ).

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BHUSHAN STEEL LIMITED Annual Report 2015-16

4. Preference Share Capital received from Shri Brij Bhushan Singal `Nil (Pre. Year `1329.00 Lacs), Shri Neeraj Singal `Nil (Pre. Year `5542.02 Lacs) and
Bhushan Infrastructure Pvt. Limited `Nil (Pre. Year `2133.00 Lacs).
5. Redemption of Preference Share Capital includes Shri Neeraj Singal `11022.03 Lacs (Pre. Year `Nil), Shri Brij Bhushan Singal `6654.00 Lacs (Pre.
Year `Nil) and Bhushan Infrastructure Private Limited `2088.00 Lacs (Pre. Year `Nil).
6. Purchase of Goods/Services from Bhushan Energy Ltd. `62172.38 Lacs (Pre. Year `36115.80 Lacs ), Bhushan Aviation Ltd. `1512.00 Lacs (Pre.Year
`1512.00 Lacs ) and Bhushan Power & Steel Limited `341.00 Lacs (Pre. Year `Nil).
7. Sale of Goods/Services to Bhushan Energy Ltd. `7031.28 Lacs (Pre. Year `17400.09 Lacs) and Bhushan Power & Steel Limited `3918.62 Lacs (Pre.
Year `Nil).
8. Security Deposit paid to Bhushan Energy Limited of `Nil (Pre. Year `9000.00 Lacs).
9. Provision for diminution of investment made in case of Angul Sukinda Railway Limited amounting of `Nil (Prev. Year `1000.00 Lacs).
10. Investment written off in case of Angul Sukinda Railway Ltd. amounting of `1000.00 Lacs (Pre. Year `Nil).
11. Payment made by Bhushan Steel Australia Pty Ltd. amounting of `1321.97 Lacs (Pre. Year `Nil) on behalf of company.
NOTE 35
The Company has an Indian Joint Venture with Andal East Coal Company Pvt. Ltd. having sharing of 33.33 %. Its proportionate share in the Assets,
Liabilities, Income and Expenditure of the Joint Venture as per unaudited financial statement is as under :-

(` In Lacs)
Current Year Previous Year
EQUITY AND LIABILITIES
Shareholders Funds
Share Capital 33.00 33.00
Reserves & Surplus 78.10 100.95
Share Application Money Pending Allotment 523.75 520.50
Non- Current Liabilities
Long-Term Borrowings - -
Deferred Tax Liabilities (Net) - -
Other Long Term Liabilities - -
Long-Term Provisions - 1.51
Current Liabilities
Short-Term Borrowings - -
Trade Payables - 0.29
Other Current Liabilities 93.86 93.54
Short-Term Provisions - -
TOTAL 728.71 749.79

ASSETS
Non-Current Assets
Fixed Assets
Tangible Assets 1.00 1.11
Intangible Assets - -
Capital Work in Progress - 595.24
Non-Current Investments - -
Long-Term Loans and Advances - -
Other Non-Current Assets - -
Current Assets
Current Investments - -
Inventories - -
Trade Receivables - -
Cash & Bank Balances 0.06 0.11
Short-Term Loans and Advances 154.33 153.33
Other Current Assets 573.32 -
TOTAL 728.71 749.79

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 Corporate overview Management reports financial statements

(` In Lacs)
Current Year Previous Year
INCOME
Gross Revenue from Operations - -
Other Income - -
TOTAL REVENUE - -
EXPENSES
Cost of Raw Material Consumed - -
Purchase of Stock In Trade - -
Change in Inventories of Finished Goods, Work-In -Progress & Stock-In-Trade - -
Employee Benefits Expense 1.47 -
Finance Costs 0.01 -
Depreciation & Amortisation Expense 0.11 -
Other Expenses 0.64 2.20
Total Expenses 2.23 2.20
Profit / (Loss) Before Tax (2.23) (2.20)
Tax Expense - -
Profit / (Loss) After Tax (2.23) (2.20)
Capital Commitment - -
Contingent Liability-Bank Guarantee - -

NOTE 36
The Company hold 90.97% (Previous Year 90.97%) share in Bhushan Steel (Australia) Pty Ltd. Bhushan Steel (Australia) Pty Ltd. hold 100.00 % (Previous
Year 100.00%) share in Bowen Energy Ltd. Bhushan Steel (Australia) Pty Ltd. has invested the amount in Bowen Energy Ltd. out of the proceeds received
from its Holding Company (i.e. Bhushan Steel Limited) which are being utilized by Bowen Energy Ltd. in exploration of mines.
Audited financial statement of Bhushan Steel Australia Pty Ltd. and Bowen Energy Ltd. are not available after June13.
In Notes to Accounts on the Consolidated Financial Statements of subsidiary M/s Bowen Energy Ltd.(Australia) in the Audited Financial Statement for the
year ended June13, following notes have been given involving material items:
The Consolidated entity has recorded a loss of $ 3,245,854 for the year ended 30 June 2013 (2012: $1,687,619) has cash outflows from operations of
$1,389,919 (2012: $399,999), current liabilities of the Consolidated entity exceeded current assets by $8,350,357 (2012:$ 6,197,029) and the Consolidated
entity is also in a net liability position of $4,423,581 (2012:$ 1,165,594).
To ensure the ongoing viability of the consolidated entity the directors have negotiated a $10m loan facility with Bhushan Steel (Australia) Pty Limited, a
wholly owned subsidiary of Bhushan Steel Limited, the parent entity of Bowen Energy Limited. At the reporting date the consolidated entity had drawn
down $6.9m of this loan. The Directors believe that taking into consideration the minimum required expenditure to maintain title to existing exploration
licences, current levels of administrative expenditure, the available loan facility, assuming funding is made available under the terms and conditions of
the loan, will be sufficient to ensure that the Consolidated entity is able to settle its liabilities as they fall due in the ordinary course of business. Bhushan
Steel (Australia) Pty Limited has also agreed not to recall payment of the loan payable by the consolidated entity until such time the consolidated entity
has surplus cash. On this basis the financial report has been prepared on the going concern basis.
The loss, including impairment loss, shown in Balance Sheet of the Bowen Energy Ltd., Australia as mentioned in the above note, consist mainly
expenditure incurred by the Company on exploration activity of its various mines which are still not operational, however, in accordance with generally
accepted accounting principles in India, the same has been treated as Capital work in progress.
In the opinion of the companys management, the note given by the auditors of Bowen Energy Ltd., Australia is not applicable as loss, other than tenements
written off, has been capitalized to CWIP in the consolidated Balance Sheet of Bhushan Steel Ltd as per generally accepted accounting principles in India.
NOTE 37
The Company is engaged in the steel business, which in the context of Accounting Standard (AS)-17 is considered the only primary business segment.
Gross Revenue excluding export incentives of the company as per Geographical Segment is as follows:

(` In Lacs)
Current Year Previous Year
Within India 1189039.19 1015074.50
Outside India 119832.93 153641.20
Total 1308872.12 1168715.70

Trade Receivable of the company as per Geographical Segment is as follows:

Current Year Previous Year

Within India 221254.04 226021.44
Outside India 13861.69 13807.11
Total 235115.73 239828.55
The Company has common fixed assets, other assets and liabilities for producing goods for domestic as well as overseas market.

59
BHUSHAN STEEL LIMITED Annual Report 2015-16

NOTE 38
Fixed Assets include one cold rolling mill established in 1992 damaged in fire accident in the year 1998-99. The amount received from Insurance Company
for reinstatement /repair of the mill was included in other liabilities till previous year. However, during the current year company has adjusted the amount
received in the books of account.
NOTE 39
Pre-operative Expenses (In respect of project to be capitalized) :
(` in Lacs)
Current Year Previous Year
Opening Balance 59218.50 434765.88
Add: Pre-operative Expenses
1. Transferred from Statement of Profit and Loss including Trial Run Loss/ 10974.23 31955.50
(Gain)
2. Depreciation - 1538.87
3. Finance Costs (During Construction and Trial Run) 22970.08 33944.31 215842.62 249336.99
93162.81 684102.87
Less : Interest earned during construction period - 317.72
93162.81 683785.15
Less: Capitalised
-Pre-Operative Expenses [Including Trial Run Loss/(Gain)] 7931.06 619983.05
- Depreciation - 7931.06 4583.60 624566.65
TOTAL 85231.75 59218.50

NOTE 40
Earning Per Share
Current Year Previous Year
(i) Weighted Average No. of Equity Shares
Weighted Average No. of Equity Shares 226514746 226514746
(ii) Equity Shares for Calculating Diluted Earning per Share
Weighted Average No. of Equity Shares 226514746 226514746
(iii) Profit / (Loss) After Tax (` in Lacs) (283936.71) (125382.80)
Less: -Dividend on preference shares
(Including Dividend Tax ) 1738.20 1095.71
Profit/ (Loss) after dividend on preference shares (285674.91) (126478.51)
(iv) Earning Per Share (`)
- Basic (126.12) (55.84)
- Diluted (126.12) (55.84)

NOTE 41
Detail of Misc. Income
(` in Lacs)
S.No. Particulars Current Year Previous Year
1. Insurance Claim Received 27.58 49.73
2. Rent Received 11.71 10.68
3. Bad Debts / Compensation Recovered 10.50 -
4. Miscellaneous Receipts 43.78 0.63
93.57 61.04

NOTE 42
The Company in respect of Khopoli unit has received a sum of `538.43 Lacs (Previous Year `270.10 Lacs) as industrial promotion subsidy under Package
Scheme of Incentive-2007 announced by Government of Maharashtra for manufacturing of Large Dia Pipe, being capital receipt, has been credited to
Capital Reserve.
NOTE 43
The Company has elected to account for exchange differences arising on reporting of long-term foreign currency monetary item in accordance with
Companies (Accounting Standards) Amendment Rules 2009 pertaining to Accounting Standard (AS)-11 notified by Government of India on 31st March,
2009 (As amended on 29th December, 2011) which allows foreign exchange differences on long-term monetary items arising on or after 1st April, 2011
to be capitalized to the extent they relate to acquisition of depreciable assets and in other cases to amortise over the balance period of the respective
monetary items.

60
 Corporate overview Management reports financial statements

NOTE 44
Though there was no profit for distribution of dividend, the Company during the financial year 2014-15 redeemed 4,00,000 25% Non Convertible
Cumulative Redeemable Preference Shares of `100/- each and 3,36,751 4% Non Convertible Cumulative Redeemable Preference Shares of `100/- each
issued to banks and as per terms of issue of Preference Shares and paid dividend of `5.13 Lacs out of general reserve as approved by Board of Directors.
NOTE 45
Pursuant to Companies Act 2013 (the Act), becoming effective from 1 April 2014, the company has re-worked depreciation with reference to the estimated
useful lives of fixed assets prescribed under Schedule II to the Act or useful life of fixed assets as per technical evaluation done during FY 2014-15.
Subsequent to Notification GSR627 (E)dated 29th August, 2014 amending para 7 (b) under schedule II of the Companys Act 2013, Company has charged
off transitional provision amounting to `250.34 Lacs during F.Y. 2014-15, net of depreciation capitalized, to Statement of Profit and Loss.
NOTE 46
The Supreme Court of India, vide its order dated 24/09/2014, cancelled number of coal blocks allocated to various entities which includes one coal block
allocated to the company and one of its associate company which were under development. Subsequently, the Government of India has issued the Coal
Mines (Special Provision) Act 2015, which inter-alia deal with the payment of compensation to the effected parties in regard to investment in coal blocks.
No effect has been taken on the value of investment made by the company in the de-allocated coal blocks amounting to `56289.96 Lacs (including
Expenditure incurred of `13546.46 Lacs and Advances given `42743.50 Lacs) and `669.25 Lacs in Equity Shares/ advance for share capital in the associate
company whose coal blocks have been de-allocated. In the opinion of the management the Company/ associate company will receive back the payments/
expenditure paid/ made, including borrowing cost and other incidental expenditure, relating to de-allocated coal blocks. The Company has filed its claim
for compensation during the year with Govt. of India Ministry of coal and accordingly the investment made by the company of `56289.96 Lacs has been
reclassified to Non-current assets in the current year from Capital Work in Progress and Capital Advances.
NOTE 47
(a) In accordance with Reserve Bank of India (RBI) Circular No2014-15/354 Dt. 15th December 2014 allowing flexible structuring of existing project
loans (with option of periodic refinancing) to operational infrastructure/core industries projects the consortium of banks with SBI as the lead bank
has allowed flexible structuring of long term loans under 5/25 scheme by aligning their debt repayment obligations with cash flow generated during
their economic life.
The steering committee and joint lenders forum have approved long term viability and have structured the debt in accordance with extant guidelines
of RBI. Rupee term loans are structured into loan with twenty five years repayment tenor, subject to review after every five years. The Company has
received the approval for flexible structuring and accordingly current maturity of outstanding loan of `1850880.00 Lacs has been classified on that
basis.
(b) The Company was unable to redeem some of the secured debentures and pay interest thereon along with other irregularities in loans given by
various Banks & Institutions. The restructuring proceedings of such defaults are going on with all the lenders. In this respect, the high level Lenders
meeting was held on 16th March, 2016 at SBI Corporate Centre, Mumbai. For debt restructuring post deliberations the JLF decided to carry out a
TEV from a reputed Independent Agency to ascertain the overall viability & sustainable debt to enable the JLM to take decision on the future course
after TEV/Valuation. In view of the pending restructuring plan with Lenders, the Management is of the opinion that technically the provisions of
section 164(2)(b) of the Companies Act, 2013 are not attracted to any Director. In view of the above, the Company is not required to file Form No.
DIR9 with the Registrar of Companies.
NOTE 48
Due to the loss incurred, the Company applied to the Central Government for the approval of managerial remuneration. The approval from Central
Government has been received during the year but further clarification regarding Leave Encashment, PF and taxable car perquisite has been sought.
Hence, the payment of Leave Encashment, PF and taxable Car perquisite are subject to approval of Central Govt.
NOTE 49
The board has given in principal approval for the demerger of the plants of the company situated at Sahibabad and Khopoli to its subsidiaries on slump
sale basis through business transfer agreement based on the valuation to be carried out by approved valuer. The said transaction is subject to approval
of board and shareholders.
NOTE 50
During the current financial year the company has entered into sale and lease back transaction of Coke Oven Batteries and Oxygen equipment of 150 TPD
Plant, however, the same has been cancelled due to regulatory constraints. The net amount of `22840.50 Lacs received under this transaction has been
disclosed under other current liabilities as other payables.
NOTE 51
For computing deferred tax liability, the amount of business and depreciation loss as allowable in income tax returns has been considered for recognizing
deferred tax assets. On the basis of future projections taken on record by the management after considering improved performance of the company in
last quarter, the board is confident that there is a virtual certainty that sufficient taxable income will be available in the future against which, the deferred
tax assets can be realized in the normal course of business of the company.
NOTE 52
The Company during the financial year 2014-2015 had sold assigned and transferred to the purchaser in perpetuity, all rights, titles and interest in the
equipments of Oxygen Plant, free and clear of encumbrances, on an itemized asset sale basis, for a consideration of `100012.50 Lacs including sales tax.
The said equipments are taken by the Company under operating lease for a period of ten years from 26th February 2015.
Lease Payment made on operating lease has been recognized as an expense in the statement of Profit & Loss on straight line basis with reference to lease
term and other consideration. The terms of Operating Lease are as follows:

61
BHUSHAN STEEL LIMITED Annual Report 2015-16

Amount (` In Lacs)
S. No. Particulars Current Year Previous Year
(a) The total of future minimum lease payments under non-cancellable operating
leases for each of the following periods:
(i) Not later than one year 18000.00 18000.00
(ii) Later than one year and not later than five year 75941.38 72341.30
(iii) Later than five year 84407.14 105951.80
(b) The total amount of future minimum sublease payments expected to be N.A. N.A.
received under non-cancellable sublease at the balance sheet date
(c) Lease payments recognized in the statement of Profit and Loss for the period, 12880.00 213.10
with separate amounts for minimum lease payments and contingent rent.
(d) Sub-lease payments received (or receivable) recognized in the statement of N.A. N.A.
Profit and Loss for the period
(e) A general description of the lessees significant leasing arrangements including,
but not limited to, the following:
(i) The basis on which contingent rent payments are determined N.A. N.A.
(ii) The existence and terms of renewal or purchase options and escalation Refer note below (a) & (b) Refer note below (a) & (b)
clause and
(iii) Restrictions imposed by lease arrangements, such as those concerning N.A. N.A.
dividends, additional debt, and further leasing.

Notes:
(a) Upon expiry of Lease Term, the Lessee shall have the option to renew the lease term of the Equipments for subsequent periods of 5 years each
(Renewal Term). The lease rent for Renewal Term shall be as agreed between the Lessor and Lessee but shall not be higher than the last Rent paid
under this Lease Agreement. The Lessee shall intimate any revision in the rent for the Renewal Term to its lenders.

(b) Rent is based on, among others, a benchmark rate (based on the cost of financing the purchase of the Equipments by the Lessor) that has been
agreed between the Parties prior to the date of execution of this Lease Agreement. In the event the benchmark rate changes or the parties agree to
change the benchmark rate/apply some other benchmark, the Rent payable may increase or decrease accordingly.
Due to said equipments not being fully operational, the Company has paid during the year `12880.00 Lacs (Previous Year `213.10 Lacs) as lease rent.
NOTE 53
DERIVATIVES
I The company has not entered into any derivatives instruments to hedge the foreign currency contracts. There is no derivative contract outstanding
as on the date of the Balance Sheet.
II The year end foreign currency exposure that have not been hedged by a derivative instrument or otherwise are given below :-

Current Year Previous Year

US$ INR US$ INR
equivalent equivalent equivalent equivalent
(Lacs) (Lacs) (Lacs) (Lacs)
a) Amount receivable in Foreign Currency on Account of
Sale of Goods 208.97 13861.69 220.59 13807.11
Advance against goods/ Capital Goods 179.56 11910.77 203.17 12716.33
b) Amount payable in Foreign Currency on Account of
Acceptances 310.47 20594.46 343.03 21470.83
Trade Payables/ Creditor for Capital Goods/ Customers Credit 588.62 39044.60 3260.58 204082.38
balances
Loans /Interest Payable 14884.87 987356.05 14872.03 930852.27

NOTE 54
As per Accounting Standard (AS) -15 Employee Benefits, the disclosure of employee benefits as defined in the Accounting Standards are given below:-
A. Defined Contribution Plans:
Contribution to defined contribution plan, recognized as expenses / pre-operative expenses is as under:
(` In Lacs)
Current Year Previous Year
a) Employer contribution to Provident Fund /Other Funds 573.82 415.39
b) Employer contribution to State Plans
i) Employee State Insurance 46.79 65.37
ii) Maharashtra Labour Welfare Fund 0.10 0.11

62
 Corporate overview Management reports financial statements

B. Defined Benefit Plans:

a) Leave Encashment/ Compensated Absence.
b) Contribution to Gratuity Funds - Employees Gratuity Fund.
In accordance with Accounting Standard (AS) - 15 (Revised 2005), the actuarial valuation carried out in respect of the aforesaid defined benefit plans is
based on the following assumptions:
(` in Lacs)
Leave Encashment / Employee Gratuity Fund
Compensated Absence
Current Year Previous Year Current Year Previous Year
i) Acturial Assumptions
Discount Rate (per annum) 8% 8% 8% 8%
Rate of increase in compensation levels 5% 5% 5% 5%
Rate of return on plan assets - - 8% 8%
Expected Average remaining working lives of employees (years) 24 25 24 25
ii) Change in the obligation during the year ended 31st March,
2016
Present value of obligation as at 31st March, 2015 1578.36 1349.50 2950.09 2380.04
Impact of Transition provision of (AS)-15 - - - -
Interest cost 126.27 114.71 236.01 202.31
Past Service cost - - - -
Current service cost 291.24 310.90 451.46 412.61
Curtailment cost - - - -
Settlement cost - - - -
Benefits Paid (165.27) (168.98) (227.76) (160.53)
Actuarial (gain)/ loss on Obligations (164.31) (27.77) 61.01 115.66
Present value of obligation as at 31st March, 2016 1666.29 1578.36 3470.81 2950.09
iii) Change in fair value of Plan Assets
Fair value of Plan Assets as at 31st March, 2015 - - 1680.36 1706.19
Expected return on Plan Assets - - 134.42 136.50
Contributions - - - -
Benefits Paid - - (227.76) (160.53)
Actuarial gain/ (loss) on Obligations - - 29.84 (1.80)
Fair value of Plan Assets as at 31st March, 2016 - - 1616.86 1680.36
iv) R
 econciliation of Present value of Defined Benefit obligation
and Fair value of Plan Assets
Present value of obligation as at 31st March, 2016 1666.29 1578.36 3470.81 2950.09
Fair value of Plan Assets as at 31st March, 2016 - - 1616.86 1680.36
Funded Status (1666.29) (1578.36) (1853.95) (1269.73)
Present value of un-funded obligation as at 31st March, 2016 - - - -
Un-funded Actuarial (gains)/ losses - - - -
Un-funded Net Asset/ (Liability) recognised in Balance Sheet (1666.29) (1578.36) (1853.95) (1269.73)
v) Expenses / Pre-Operative expenses recognised in Statement
of Profit and Loss
Current service cost 291.24 310.90 451.46 412.61
Past Service cost - - - -
Interest cost 126.27 114.71 236.01 202.31
Expected return on Plan Assets - - (134.42) (136.50)
Curtailment cost - - - -
Settlement cost - - - -
Net Actuarial (gain)/ loss recognised during the year (164.31) (27.77) 31.16 117.46
Total Expense recognised in Statement of Profit and Loss / Pre- 253.20 397.84 584.21 595.88
Operative expenses
The estimate of future salary increase, considered in actuarial valuation, takes into account inflation, seniority, promotion and other relevant factors.

63
BHUSHAN STEEL LIMITED Annual Report 2015-16

(` in Lacs)
Current Year Previous Year
NOTE 55
Value of Import on C.I.F. Basis
- Raw Material 411265.06 349257.10
- Capital Goods 16036.61 17171.19
- Stores/Spare parts 10485.16 9321.82

NOTE 56
Expenditure in Foreign Currency
-Travelling 282.70 199.65
-Sales Commission 264.85 252.94
-Machinery Repair & Maintenance 32.00 334.44
-Technical Consultancy 924.42 1549.05
-Interest & Finance Charges 33676.98 36555.45
-Capital Machinery / Indirect Expenses 1164.12 -
-Legal Expenses 20.47 23.23
-Rates & Taxes - 14.07
-Subscription 3.48 4.31
-Insurance - 7.44

NOTE 57
Earnings in Foreign Exchange
-FOB Value of Export 119832.93 153641.20
NOTE 58
Value of Imported / Indigenous Raw Material and Stores / Spare Parts Consumed
Current Year Previous Year
Value(` in %age Value(` In %age
lacs) lacs)
Raw Material:
Imported 348937.04 53.10 209886.04 36.76
Indigenous 308230.25 46.90 361054.89 63.24
657167.29 100.00 570940.93 100.00
Stores/Spare Parts:
Imported 10399.26 25.79 7370.69 23.32
Indigenous 29926.15 74.21 24231.48 76.68
40325.41 100.00 31602.17 100.00

NOTE 59
Remittance in foreign currency on account of Dividend
The Company has paid dividend in respect of shares held by Non-Residents on repatriation basis. This inter-alia includes portfolio investment and direct
investment, where the amount is also credited to Non-Resident External Account (NRE A/c). The total amount remittable in this respect is given herein
below :
Current Year Previous Year
USD INR USD INR
(a) Number of Non-Resident Shareholders - 396
(b) Number of Equity Shares held by them - 4581360
(c) (i) Amount of dividend paid (Gross) - - 130 2290680
(a) Amount of dividend paid through transfer in NRE a/c - 2282680
(b) Amount of Dividend paid through Foreign Currency - - 130 8000
(ii) Tax deducted at source - - - -
(iii) Year to which dividend relates N.A. 2013-2014
NOTE 60
Previous Year Figures have been rearranged/regrouped wherever considered necessary.

For MEHRA GOEL & CO. For MEHROTRA & MEHROTRA

Chartered Accountants Chartered Accountants
(Registration No.: 000517N) (Registration No.000226C)
Sd/- Sd/- Sd/- Sd/-
R. K. MEHRA M.P. MEHROTRA B. B. SINGAL NEERAJ SINGAL
PARTNER PARTNER NON-EXECUTIVE CHAIRMAN VICE CHAIRMAN &
M. NO.:006102 M.NO.:005699 MANAGING DIRECTOR
Sd/- Sd/- Sd/-
PANKAJ KUMAR NITTIN JOHARI O. P. DAVRA
Place: New Delhi HEAD WHOLE TIME DIRECTOR (FINANCE) COMPANY
Dated: 30th May, 2016 (ACCOUNTS) & CHIEF FINANCIAL OFFICER SECRETARY

64
 Corporate overview Management reports financial statements

INDEPENDENT AUDITORS REPORT

To Basis of Qualified Opinion
The Supreme Court of India, vide its order dated 24/09/2014, cancelled
The Members of Bhushan Steel Limited number of coal blocks allocated to various entities which includes one coal
Report on the Consolidated Financial Statements block allocated to the company and one of its associated company, which
were under development. Subsequently, the Government of India has issued
We have audited the accompanying consolidated financial statements of the Coal Mines (Special Provision) Act, 2015, which inter-alia deal with the
BHUSHAN STEEL LIMITED (hereinafter referred to as the Holding payment of compensation to the effected parties in regard to investment in
Company)and its subsidiaries its associates and jointly controlled entities the coal blocks.
( collectively referred to as the Group) , comprising of the Consolidated
Balance Sheet as at 31st March, 2016, the Consolidated Statement of No effect has been taken on the value of investment made by the company
Profit and Loss, the Consolidated Cash Flow Statement for the year then in the de-allocated coal blocks amounting to `56289.96 Lacs(including
expenditure incurred `13546.46 Lacs and advance given `42743.50 Lacs) and
ended, and a summary of the significant accounting policies and other
`669.25 Lacs in Equity shares/ advance for share capital in the associated
explanatory information (hereinafter referred to as the consolidated
company whose coal blocks have been de-allocated. In the opinion of the
financial statements).
management the Company/associated company will receive back the
Managements Responsibility for the Consolidated Financial Statements payments/expenditure paid/ made, including borrowing cost and other
The Holding Companys Board of Directors is responsible for the preparation incidental expenditure, relating to de-allocated coal blocks. The company has
of these consolidated financial statements in terms of the requirements of filed its claim for compensation during the year with Government of India,
the Companies Act, 2013 (hereinafter referred to as the Act)that give Ministry of Coal and accordingly the investment made by the company of
a true and fair view of the consolidated financial position, consolidated `56289.96 Lacs has been reclassified to non-current assets from capital work
financial performance and consolidated cash flows of the Group including in progress and capital advance.
its Associates and Jointly controlled entities in accordance with the
We are unable to comment on the impact on the value of investment made
accounting principles generally accepted in India, including the Accounting by the company and its associate in the de-allocated coal blocks and their
Standards specified under Section 133 of the Act, read with Rule 7 of the consequent impact on the Losses for the financial year ended March 31, 2016.
Companies (Accounts) Rules, 2014. The respective Board of Directors
of the companies included in the Group and of its associates and jointly Qualified Opinion
controlled entities are responsible for maintenance of adequate accounting In our opinion and to the best of our information and according to the
records in accordance with the provisions of the Act for safeguarding the explanations given to us, except for the matter described in the Basis of
assets and for preventing and detecting frauds and other irregularities; Qualified Opinion paragraph above, the aforesaid consolidated financial
the selection and application of appropriate accounting policies; making statements give the information required by the Act in the manner so
judgments and estimates that are reasonable and prudent; and the design, required and give a true and fair view in conformity with the accounting
implementation and maintenance of adequate internal financial controls, principles generally accepted in India, of the consolidated state of affairs
that were operating effectively for ensuring the accuracy and completeness of the Group, its associates and jointly controlled entities as at 31st March,
of the accounting records, relevant to the preparation and presentation 2016, and their consolidated loss and their consolidated cash flows for the
of the financial statements that give a true and fair view and are free year ended on that date.
from material misstatement, whether due to fraud or error, which have Other Matters
been used for the purpose of preparation of the consolidated financial a) Consolidated Financial statement of a foreign subsidiary namely
statements by the Directors of the Holding Company, as aforesaid. Bowen Energy Pty Limited (Australia) is prepared in accordance
Auditors Responsibility with Accounting Standards and other generally accepted accounting
Our responsibility is to express an opinion on these consolidated financial principles in Australia with the year ending June, 30 every year. We
statements based on our audit. While conducting the audit, we have have been informed that no Consolidated Financial Statement of the
taken into account the provisions of the Act, the accounting and auditing Bowen Energy Pty Limited (Australia) have been prepared after
standards and matters which are required to be included in the audit report June 30, 2013. Consolidated Financial Statement/information of the
under the provisions of the Act and the Rules made there under. Bowen Energy Pty Limited (Australia), whose consolidated financial
statements/information reflect total assets of `11298.49 Lacs as at
We conducted our audit in accordance with the Standards on Auditing 31st March, 2016, Loss of `150.84 Lacs, and cash outflows amounting
specified under Section 143(10) of the Act. Those Standards require that to ` 89.12 Lacs for the year ended at 31st March, 2016, included in
we comply with ethical requirements and plan and perform the audit to Consolidated Financial Statement, is prepared by the management
obtain reasonable assurance about whether the consolidated financial as on 31st March 2016, as informed to us by converting the figures
statements are free from material misstatement. in accordance with Accounting Standards and other generally
accepted accounting principles in India. These financial statements/
An audit involves performing procedures to obtain audit evidence about financial informations are unaudited and have been furnished to us
the amounts and the disclosures in the consolidated financial statements. by the Management and our opinion on the consolidated financial
The procedures selected depend on the auditors judgment, including statements, in so far as it relates to the amounts and disclosures
the assessment of the risks of material misstatement of the consolidated included in respect of the subsidiary and our report in terms of
financial statements, whether due to fraud or error. In making those risk sub-sections (3) of Section 143 of the Act in so far as it relates to
assessments, the auditor considers internal financial control relevant to the the aforesaid subsidiary is based solely on such unaudited financial
Holding Companys preparation of the consolidated financial statements statements / financial information. In our opinion and according to
that give a true and fair view in order to design audit procedures that are the information and explanations given to us by the Management, the
appropriate in the circumstances. An audit also includes evaluating the financial statements / financial informations are not material to the
appropriateness of the accounting policies used and the reasonableness Group.
of the accounting estimates made by the Holding Companys Board of
Directors, as well as evaluating the overall presentation of the consolidated b) We have relied on the unaudited financial statements of a foreign
financial statements. subsidiary, namely Bhushan Steel (Australia) Pty. Ltd. and a joint
venture, namely Andal East Coal Company Pvt. Ltd., whose financial
We believe that the audit evidence obtained by us is sufficient and statements/financial informations reflect total assets of `26791.18
appropriate to provide a basis for our audit opinion on the consolidated Lacs and `728.71 Lacs as at 31st March, 2016, Profit/(Loss) of
financial statements. `191.45 Lacs and `(2.23) Lacs and cash outflows amounting to

65
BHUSHAN STEEL LIMITED Annual Report 2015-16

`2.23 Lacs and `0.05 Lacs for the year ended at 31st March, 2016 (e) The matters described in Basis of Qualified Opinion paragraph above,
respectively as considered in the consolidated financial statement. in our opinion may have an adverse effect on the functioning of the
These financial statements/financial informations are unaudited and Company.
have been furnished to us by the Management and our opinion on
the consolidated financial statements, in so far as it relates to the (f) On the basis of the written representations received from the directors
amounts and disclosures included in respect of these subsidiaries of the Holding Company as on 31st March, 2016 taken on record by
and jointly controlled entity, and our report in terms of sub-sections the Board of Directors of the Holding Company and the reports of the
(3) of Section 143 of the Act in so far as it relates to the aforesaid statutory auditors of its subsidiary companies, associate companies
subsidiary and jointly controlled entities, is based solely on such and jointly controlled companies incorporated in India, none of the
unaudited financial statements / financial information. In our opinion directors of the Group Companies, its associate companies and jointly
and according to the information and explanations given to us by the controlled companies incorporated in India is disqualified as on 31st
Management, these financial statements / financial information are March, 2016 from being appointed as a director in terms of Section
not material to the Group. 164 (2) of the Act as indicated in Note 49(b) to the consolidated
financial statements.
c) We have relied on the unaudited financial statement of an associate,
namely Bhushan Energy Limited, whose share of Loss for the year (g) The qualification relating to the maintenance of accounts and other
ended 31st March, 2016, amounting to `7234.25 Lacs has been matters connected therewith are as stated in the Basis of Qualified
considered in the consolidated financial statement. The financial Opinion paragraph above.
statements of Bhushan Energy Limited is unaudited and have
been furnished to us by the Management and our opinion on the (h) With respect to the adequacy of the internal financial controls over
consolidated financial statements, in so far as it relates to the financial reporting of the Group and the operating effectiveness of
amounts and disclosures included in respect of associate, and our such controls, refer to our separate report in Annexure A; and
report in terms of sub-sections (3) of Section 143 of the Act in so
far as it relates to the aforesaid associate is based solely on such (i) With respect to the other matters to be included in the Auditors Report
unaudited financial statements. In our opinion and according to the in accordance with Rule 11 of the Companies (Audit and Auditors)
information and explanations given to us by the Management, these Rules, 2014, in our opinion and to the best of our information and
financial statements are not material to the Group. according to the explanations given to us:
Our opinion on the consolidated financial statements, and our report
i. The consolidated financial statements disclose the impact
on Other Legal and Regulatory Requirements below, is not modified in
of pending litigations on the consolidated financial position
respect of the above matters with respect to our reliance on the financial
of the Group, its associates and jointly controlled entities
statements /consolidated financial statements/ informations certified by
Refer Note 31(1) to the consolidated financial statements.
the Management.
Report on Other Legal and Regulatory Requirements ii. Provision has been made in the consolidated financial
As required by Section 143(3) of the Act, we report, to the extent statements, as required under the applicable law or
applicable, that: accounting standards, for material foreseeable losses, if any,
on long-term contracts including derivative contracts Refer
(a) We have sought, except for the possible effect of the matter described Note 55 to the consolidated financial statements in respect
in the Basis of Qualified Opinion paragraph above, and obtained all the of such items as it relates to the Group, its associates and
information and explanations which to the best of our knowledge and jointly controlled entities.
belief were necessary for the purposes of our audit of the aforesaid
consolidated financial statements. iii. There has been no delay in transferring amounts, required
to be transferred, to the Investor Education and Protection
(b) In our opinion, except for the possible effect the matter described Fund by the Holding Company and its subsidiary companies,
in the Basis of Qualified Opinion paragraph above, proper books of associate companies and jointly controlled companies
account as required by law relating to preparation of the aforesaid incorporated in India.
consolidated financial statements have been kept so far as it appears
from our examination of those books and the reports of the other
auditors. For MEHRA GOEL & CO. For MEHROTRA & MEHROTRA
Chartered Accountants Chartered Accountants
(c) The Consolidated Balance Sheet, the Consolidated Statement of Profit
(FRN: 000517N) (FRN: 000226C)
and Loss, and the Consolidated Cash Flow Statement dealt with by
this Report are in agreement with the relevant books of account

maintained for the purpose of preparation of the consolidated
R.K. Mehra M.P. Mehrotra
financial statements.
Partner Partner
M. N0.: 006102 M. N0. : 005699
(d) In our opinion, except for the possible effect the matter described
in the Basis of Qualified Opinion paragraph above, the aforesaid
Place: New Delhi
consolidated financial statements comply with the Accounting
Date: 30th May, 2016
Standards specified under Section 133 of the Act, read with Rule 7 of
the Companies (Accounts) Rules, 2014.

66
 Corporate overview Management reports financial statements

Annexure - A to the Auditors Report of Bhushan Steel Limited provide a basis for our audit opinion on the Companys internal financial
controls system over financial reporting.
Report on the Internal Financial Controls under Clause (i) of Sub-
section 3 of Section 143 of the Companies Act, 2013 (the Act) Meaning of Internal Financial Controls Over Financial Reporting
A company's internal financial control over financial reporting is a process
In conjunction with our audit of the consolidated financial statements of designed to provide reasonable assurance regarding the reliability of
the Company as of and for the year ended March 31, 2016, We have financial reporting and the preparation of financial statements for external
audited the internal financial controls over financial reporting of Bhushan purposes in accordance with generally accepted accounting principles. A
Steel Limited (hereinafter referred to as the Holding Company) and company's internal financial control over financial reporting includes those
its subsidiary companies, its associate companies and jointly controlled
policies and procedures that (1) pertain to the maintenance of records
companies, which are companies incorporated in India, as of that date.
that, in reasonable detail, accurately and fairly reflect the transactions
Managements Responsibility for Internal Financial Controls and dispositions of the assets of the company; (2) provide reasonable
The respective Board of Directors of the Holding company, its subsidiary assurance that transactions are recorded as necessary to permit
companies, its associate companies and jointly controlled companies, preparation of financial statements in accordance with generally accepted
which are companies incorporated in India, are responsible for establishing accounting principles, and that receipts and expenditures of the company
and maintaining internal financial controls based on the internal control are being made only in accordance with authorisations of management
over financial reporting criteria established by the Company considering and directors of the company; and (3) provide reasonable assurance
the essential components of internal control stated in the Guidance Note on regarding prevention or timely detection of unauthorised acquisition, use,
Audit of Internal Financial Controls Over Financial Reporting issued by the or disposition of the company's assets that could have a material effect on
Institute of Chartered Accountants of India (ICAI). These responsibilities the financial statements.
include the design, implementation and maintenance of adequate internal
Inherent Limitations of Internal Financial Controls Over
financial controls that were operating effectively for ensuring the orderly
Financial Reporting
and efficient conduct of its business, including adherence to the respective
Because of the inherent limitations of internal financial controls over
companys policies, the safeguarding of its assets, the prevention and
financial reporting, including the possibility of collusion or improper
detection of frauds and errors, the accuracy and completeness of the
management override of controls, material misstatements due to error or
accounting records, and the timely preparation of reliable financial
fraud may occur and not be detected. Also, projections of any evaluation of
information, as required under the Companies Act, 2013.
the internal financial controls over financial reporting to future periods are
Auditors Responsibility subject to the risk that the internal financial control over financial reporting
Our responsibility is to express an opinion on the Company's internal may become inadequate because of changes in conditions, or that the
financial controls over financial reporting based on our audit. We degree of compliance with the policies or procedures may deteriorate.
conducted our audit in accordance with the Guidance Note on Audit of
Internal Financial Controls Over Financial Reporting (the Guidance Note) Opinion
issued by the ICAI and the Standards on Auditing, issued by ICAI and In our opinion, the Holding Company, its subsidiary companies, its associate
deemed to be prescribed under section 143(10) of the Companies Act, companies and jointly controlled companies, which are companies
2013, to the extent applicable to an audit of internal financial controls, incorporated in India, have, in all material respects, an adequate internal
both issued by the ICAI. Those Standards and the Guidance Note require financial controls system over financial reporting and such internal financial
that we comply with ethical requirements and plan and perform the audit controls over financial reporting were operating effectively as at March
to obtain reasonable assurance about whether adequate internal financial 31, 2016, based on the internal control over financial reporting criteria
controls over financial reporting was established and maintained and if established by the Company considering the essential components of
such controls operated effectively in all material respects. internal control stated in the Guidance Note on Audit of Internal Financial
Controls Over Financial Reporting issued by ICAI.
Our audit involves performing procedures to obtain audit evidence about
the adequacy of the internal financial controls system over financial
reporting and their operating effectiveness. Our audit of internal financial
controls over financial reporting included obtaining an understanding of For MEHRA GOEL & CO. For MEHROTRA & MEHROTRA
internal financial controls over financial reporting, assessing the risk that Chartered Accountants Chartered Accountants
a material weakness exists, and testing and evaluating the design and (FRN: 000517N) (FRN: 000226C)
operating effectiveness of internal control based on the assessed risk.
The procedures selected depend on the auditors judgment, including
the assessment of the risks of material misstatement of the financial R.K. Mehra M.P. Mehrotra
statements, whether due to fraud or error. Partner Partner
M. N0.: 006102 M. N0. : 005699
We believe that the audit evidence we have obtained and the audit
evidence obtained by the other auditors in terms of their reports referred Place: New Delhi
to in the other matters paragraph below, is sufficient and appropriate to Date: 30th May, 2016

67
BHUSHAN STEEL LIMITED Annual Report 2015-16

CONSOLIDATED BALANCE SHEET AS AT 31ST MARCH, 2016

(` in Lacs)
NOTE As at As at
31.03.2016 31.03.2015
EQUITY AND LIABILITIES
Shareholders' Funds
Share Capital 2 22680.09 17551.47
Reserves and Surplus 3 443136.06 771062.10
465816.15 788613.57
Share Application Money Pending Allotment - -
Minority Interest 3300.60 3297.07
Non-Current Liabilities
Long-Term Borrowings 4 3232602.13 3092772.22
Deferred Tax Liabilities (Net) 5 63959.26 137407.19
Other Long Term Liabilities 6 64057.26 63980.29
Long-Term Provisions 7 - 1.51
3360618.65 3294161.21
Current Liabilities
Short-Term Borrowings 8 1002950.44 760154.45
Trade Payables 9 117645.49 273939.11
Other Current Liabilities 10 457961.27 172168.15
Short-Term Provisions 11 3520.24 2848.10
1582077.44 1209109.81
Total 5411812.84 5295181.66
ASSETS
Non-Current Assets
Fixed Assets 12
Tangible Assets 3649724.67 3656338.08
Intangible Assets 7.66 39.03
Capital Work in Progress 313934.83 278732.84
3963667.16 3935109.95
Non-Current Investments 13 30066.62 37301.36
Long-Term Loans and Advances 14 115591.43 153413.07
Other Non-Current Assets 15 59303.42 2459.23
204961.47 193173.66
Current Assets
Current Investments 16 2.58 2.06
Inventories 17 880858.43 732123.31
Trade Receivables 18 235115.73 239828.55
Cash and Bank Balances 19 16386.94 8829.10
Short-Term Loans and Advances 20 109800.61 123691.11
Other Current Asstes 21 1019.92 62423.92
1243184.21 1166898.05
Total 5411812.84 5295181.66
Significant Accounting Policies 1
Other Notes on Financial Statements 31 to 65

As per our report of even date attached

For MEHRA GOEL & CO. For MEHROTRA & MEHROTRA
Chartered Accountants Chartered Accountants
(Registration No.: 000517N) (Registration No.000226C)
Sd/- Sd/- Sd/- Sd/-
R. K. MEHRA M.P. MEHROTRA B. B. SINGAL NEERAJ SINGAL
PARTNER PARTNER NON-EXECUTIVE CHAIRMAN VICE CHAIRMAN &
M. NO.:006102 M.NO.:005699 MANAGING DIRECTOR
Sd/- Sd/- Sd/-
PANKAJ KUMAR NITTIN JOHARI O. P. DAVRA
Place: New Delhi HEAD WHOLE TIME DIRECTOR (FINANCE) COMPANY
Dated: 30th May, 2016 (ACCOUNTS) & CHIEF FINANCIAL OFFICER SECRETARY

68
 Corporate overview Management reports financial statements

CONSOLIDATED STATEMENT OF PROFIT AND LOSS

FOR THE YEAR ENDED 31ST MARCH, 2016
(` in Lacs)
NOTE Year Ended 31.03.2016 Year Ended 31.03.2015
INCOME
Gross Revenue from Operations 22 1312406.77 1173501.72
Less: Excise Duty 132143.41 1180263.36 108924.65 1064577.07
Other Income 23 2265.97 1184.07
TOTAL REVENUE 1182529.33 1065761.14
EXPENSES
Cost of Materials Consumed 24 654883.40 568467.91
Cost of Purchase Goods Traded 25 259.11 4831.81
Change in Inventories of Finished Goods, Work In Progress and 26 (6679.35) 21766.50
Stock -In -Trade
Employee Benefits Expense 27 43249.23 25752.89
Finance Costs 28 458230.38 249402.61
Depreciation and amortization expense 109974.55 93839.85
Other Expenses 29 279959.33 226521.38
Total Expenses 1539876.65 1190582.95
Profit / (Loss) Before exceptional & extraordinary item (357347.32) (124821.81)
and Tax
Exceptional Items 30 - 1000.00
Profit / (Loss) Before Tax (357347.32) (125821.81)
Tax Expenses
- MAT Credit Utilised/(Available for Setoff) - 0.04
- Deferred Tax (73447.93) (73447.93) (112.03) (111.99)
Profit / (Loss) for the year(before Adjustment for Share (283899.39) (125709.82)
of Associates & Minorty Interest)
Add: Share of Profit/(Loss) of Associates (7234.74) 4.31
Less: Minority Interest 5.06 (28.91)
Profit / (Loss) for the year (After Adjustment for Share (291139.19) (125676.60)
of Associates & Minorty Interest)
Basic Earning Per Share (`) (129.30) (55.97)
Diluted Earning Per Share (`) (129.30) (55.97)
Nominal Value of Share (`) 2.00 2.00
(Refer Note-42)
Significant Accounting Policies 1
Other Notes on Financial Statements 31 to 65

As per our report of even date attached

For MEHRA GOEL & CO. For MEHROTRA & MEHROTRA
Chartered Accountants Chartered Accountants
(Registration No.: 000517N) (Registration No.000226C)
Sd/- Sd/- Sd/- Sd/-
R. K. MEHRA M.P. MEHROTRA B. B. SINGAL NEERAJ SINGAL
PARTNER PARTNER NON-EXECUTIVE CHAIRMAN VICE CHAIRMAN &
M. NO.:006102 M.NO.:005699 MANAGING DIRECTOR
Sd/- Sd/- Sd/-
PANKAJ KUMAR NITTIN JOHARI O. P. DAVRA
Place: New Delhi HEAD WHOLE TIME DIRECTOR (FINANCE) COMPANY
Dated: 30th May, 2016 (ACCOUNTS) & CHIEF FINANCIAL OFFICER SECRETARY

69
BHUSHAN STEEL LIMITED Annual Report 2015-16

CONSOLIDATED CASH FLOW STATEMENT

FOR THE YEAR ENDED 31ST MARCH, 2016
(` in Lacs)
Year Ended 31.03. 2016 Year Ended 31.03.2015
(A) CASH FLOW FROM OPERATING ACTIVITIES
Net Profit / (Loss) before tax and extraordinary (357347.32) (125821.81)
items and share of profit of Associates
Adjustments for :
Opening difference between audited and unaudited (20.62) -
result
Depreciation & Amortization Expenses 109974.55 93839.85
Provisions (Retirement Benefits) 670.63 824.52
Share of Profit of Associates 7234.74 (4.31)
Finance Costs 458230.38 249402.61
Interest/Dividend Income on Investments (0.04) (1.38)
Interest Income ( Others) (1328.30) (801.52)
FCTR transferred on deregistration of subsidiaries (1.53) -
Diminution in value of investment - 1007.40
Diminution in value of investment written back (0.52) -
Loss / (Profit) on Sale of Fixed Assets (842.01) (320.13)
Provision for Doubtful Debts / Bad Debts Written off 997.20 383.72
Loss/(Gain) on Exchange Rate Change (1762.82) 573151.66 393.49 344724.25

Operating Profit Before Working Capital Changes 215804.34 218902.44

Adjustments for :
Increase(-) / Decrease in Inventories (148735.12) (84098.39)
Increase(-) / Decrease in Trade Receivables 3790.17 4797.92
Increase(-) / Decrease in Loans & Advances 13695.14 18573.88
Increase / Decrease(-) in Trade Payables & Other (103874.64) (235124.45) 59147.34 (1579.25)
Liabilities
Cash Flow from Operating Activities (19320.11) 217323.19
Direct Tax Paid (Net of Refund) (493.51) (124.12)
Net Cash (Used) / Flow in / from Operating (19813.62) 217199.07
Activities (A)

(B) CASH FLOW FROM INVESTING ACTIVITIES :

Purchase of Fixed Assets (75590.39) (172043.58)
Proceeds from Sale of Fixed Assets 62306.47 33188.43
Purchase of Investments - -
Long Term Fixed Deposits 19.09 (2459.23)
Share of Profit of Associates (7234.74) 4.31
Interest Income 1278.27 1089.92
Dividend Income 0.04 1.38
Net Cash Used In Investing Activities (B) (19221.26) (140218.77)

70
 Corporate overview Management reports financial statements

(` in Lacs)
Year Ended 31.03. 2016 Year Ended 31.03.2015
(C) CASH FLOW FROM FINANCING ACTIVITIES :
Finance Costs (401506.29) (433404.24)
Proceeds From Cash Credit From Banks (Net) 279058.49 118714.27
Proceeds From Other Borrowings 200679.96 242262.73
Proceeds From Share / Share Application Money 6500.00 20014.02
Proceeds From Share Application Money of Minority - (5.03)
Shareholders
Redemption of Preference Shares Including Premium (38676.04) (22151.40)
Capital Subsidy 538.43 270.10
Proceeds on Consolidation/De-consolidation of - 5.02
Subsidiaries
Dividend Paid - (1915.69)
Unclaimed Dividend Paid (1.83) (96.70)
Dividend Tax Paid - (342.68)
Net Cash Flow From Financing Activities (C) 46592.72 (76649.60)

Net Increase/ (Decrease) in Cash and Cash 7557.84 330.70

Equivalents (A+B+C)
Opening Balances of Cash and Cash Equivalents 8829.10 8498.40
Closing Balances of Cash and Cash Equivalents 16386.94 8829.10

Note:-
i) The above cash flow statement has been prepared under the indirect method as set out in Accounting Standard (AS) - 3 on Cash Flow Statement.
ii) Cash and Cash equivalents include `14.93 Lacs (Previous Year `16.76 Lacs) in respect of unclaimed dividend, the balance of which is not available
to the company.
iii) Figures in brackets represent cash out flow.
iv) Previous Year Figures have been rearranged/regrouped wherever considered necessary.

As per our report of even date attached

For MEHRA GOEL & CO. For MEHROTRA & MEHROTRA
Chartered Accountants Chartered Accountants
(Registration No.: 000517N) (Registration No.000226C)
Sd/- Sd/- Sd/- Sd/-
R. K. MEHRA M.P. MEHROTRA B. B. SINGAL NEERAJ SINGAL
PARTNER PARTNER NON-EXECUTIVE CHAIRMAN VICE CHAIRMAN &
M. NO.:006102 M.NO.:005699 MANAGING DIRECTOR
Sd/- Sd/- Sd/-
PANKAJ KUMAR NITTIN JOHARI O. P. DAVRA
Place: New Delhi HEAD WHOLE TIME DIRECTOR (FINANCE) COMPANY
Dated: 30th May, 2016 (ACCOUNTS) & CHIEF FINANCIAL OFFICER SECRETARY

71
BHUSHAN STEEL LIMITED Annual Report 2015-16

NOTE - 1 SIGNIFICANT ACCOUNTING POLICIES

A) PRINCIPLES OF CONSOLIDATION: the dates on which the investments in the subsidiaries are made,
The Consolidated Financial Statements consist of Bhushan Steel Ltd is recognized as Goodwill being an asset in the consolidated
(the Company) and its subsidiaries, associates and joint venture. The financial statements. Alternatively, where the share of equity in the
Consolidated Financial Statements have been prepared on the following subsidiaries as on the date of investments, is in excess of cost of
basis: investment of the Company, it is recognized as Capital Reserves and
shown under the head Reserves and Surplus, in the consolidated
i.  he financial statements of the Company and its subsidiaries and
T financial statements.
joint venture have been combined on a Line-by-Line basis by adding
together like items of assets, liabilities, income & expenses. The The difference between the proceeds from disposal of investment in
intra-group balances and intra-group transactions and unrealized subsidiaries and the carrying amount of its assets less liabilities as of
profits or losses are fully eliminated. the date of disposal is recognized in the consolidated Statement of
Profit and Loss being the profit or loss on disposal of investment in
ii. In case of foreign subsidiaries, being integrated foreign operations, subsidiaries.
revenue items are consolidated at the exchange rate prevailing at
the date of the transaction. Foreign currency monetary items are v. In the case of Associates, investment in Associates is accounted for
converted at rates prevailing at the end of the year. Non-Monetary using equity method in accordance with Accounting Standard (AS)-23
items which are carried in terms of historical cost denominated Accounting for Investments in Associates in Consolidated Financial
in a foreign currency are reported using the exchange rate at the Statements.
transaction date. Non-Monetary items which are carried at fair
value or other similar valuation denominated in a foreign currency vi. The difference between the cost of investment in the Associates and
are reported using the exchange rates that existed when the values the net assets at the time of acquisition of shares in the Associate is
were determined. Any exchange difference arising on consolidation identified in the Financial Statements as Goodwill or Capital Reserve
is recognized in the Statement of Profit and Loss. as the case may be.

iii. In case of foreign subsidiaries, being non integral operations, revenue vii. 
Interest in Joint venture have been accounted by using the
items are consolidated at the average rate prevailing during the year. proportionate consolidation method as per Accounting Standard (AS)-
All assets and liabilities are converted at the rates prevailing at the 27 on Financial Reporting of Interest in Joint Ventures notified by
end of the year. Any exchange difference arising on consolidation is Companies (Accounting Standards ) rules, 2006.
recognized in the foreign currency translation reserve. viii. As far as possible, the consolidated financial statements are prepared
iv. 
The excess of cost of the Company of its investments in the using uniform accounting policies for like transactions and other
subsidiaries over its share of the equity of the subsidiaries, at events in similar circumstances and are presented in the same
manner as the companys separate financial statements.

ix. The following subsidiaries are considered in the preparation of consolidated financial statements:

Name of the Company Country of Incorporation % age of Voting Power either directly or
through Subsidiaries as at 31st March, 2016
Bhushan Steel (Orissa) Ltd. India 100.00
Bhushan Steel (South) Ltd. India 100.00
Bhushan Steel Madhya Bharat Ltd. India 100.00
Bhushan Steel (Australia) PTY Ltd. Australia 90.97
Bowen Energy Pty Ltd. ** Australia 100.00
Bowen Coal PTY Ltd. * Australia 100.00
Bowen Consolidated PTY Ltd. * Australia 100.00
** Subsidiary of Bhushan Steel (Australia) PTY Ltd.
* Subsidiaries of Bowen Energy PTY Ltd. .

x. The Joint Venture Company considered in the Consolidated Financial Statements is :-

Name of the Company Country of Incorporation Proportion of Ownerships Interest

Andal East Coal Company Pvt. Ltd. India 33.33 %

xi. (a) The Associate Companies considered in the Consolidated Financial Statements are:-

Name of the Company Country of Incorporation Proportion of Ownerships Interest

Bhushan Energy Ltd. India 47.17%
Bhushan Capital & Credit Services Private Limited India 42.58%
Jawahar Credit & Holdings Private Limited India 39.65%

72
 Corporate overview Management reports financial statements

(b) The Associate Companies not considered in the Consolidated from exchange rate variations relating to long term monetary items
Financial Statements are:- attributable to the depreciable fixed assets are capitalized.
The Company has made investment of `1000.00 Lacs in Equity Machine spares that can be used only in connection with an item of
Shares of Angul Sukinda Railway Limited for the construction of Rail fixed asset and their use is expected to be irregular are capitalized.
line between Talcher Road in Angul District to Bhaguapal in Jajpur The replacement of such spares is charged to revenue.
along with other parties. As the project has not made any headway
the Company refused to pay the call money of `1540.00 Lacs plus Capital expenditure on assets not owned by the company with
interest. Angul Sukinda Railway Limited has issued final call notice for exclusive right to use is reflected in capital work-in-progress till the
payment of unpaid call money failing which the shares are liable to period of completion and thereafter in Fixed Assets.
be forfeited. The Company has disputed the call money which in its VI) ASSETS IN THE COURSE OF CONSTRUCTION
opinion is premature, illegal and arbitrary and has advised to withdraw Assets in the course of construction are capitalized in the assets

said notice. Provision for diminution in the value of Investment had under construction account. At the point when an asset is operating
been made last year for `1000.00 Lacs. As the shares have been at managements intended use, the cost of construction is transferred
forfeited, the investment has been written off during the year. to appropriate category of fixed assets. Costs associated with the
xii.  he financial statements of the subsidiary, associate and joint
T commissioning of an asset are capitalized where the asset is available
venture companies used in the consolidation are drawn up to the for use but incapable of operating at normal levels until a period of
same reporting date as of the Company i.e. year ended 31st March, commissioning has been completed.
2016. VII) INTANGIBLE ASSETS
B) Investments other than in Subsidiaries, Joint Venture and  In accordance with Accounting Standard (AS)- 26 relating to
Associates have been accounted as per Accounting Standard intangible assets, all costs incurred on technical know how/license
(AS)-13, on Accounting for Investments. fee relating to production process are charged to revenue in the year
of incurrence. Technical know how/license fee relating to process
C) OTHER SIGNIFICANT ACCOUNTING POLICIES: design/plants/facilities are capitalized at the time of capitalization of
the said plant/facility and amortized over a period of three years.
I) PRESENTATION OF FINANCIAL STATEMENTS
The financial statements have been prepared in compliance to VIII) IMPAIRMENT OF ASSETS
the requirements of the Companies Act 2013 (the Act), applicable Carrying amount of cash generating units/Fixed Assets are reviewed
Accounting Standards and the requirements of Schedule-III of the for impairment, if events or changes in circumstances indicate that
Act. the carrying value of an asset may not be recoverable. The excess of
carrying value of the asset over the recoverable amount is charged,
II) BASIS OF PREPARATION as an impairment loss to the Statement of Profit and Loss.
The financial statements have been prepared on historical cost
convention, in accordance with applicable Accounting Standards and IX) DEPRECIATION
provisions of the Act as adopted consistently by the Company, except Depreciation on all fixed assets at Khopoli Plant and a Cold Rolling
for defined benefit pension/other funds obligations that have been Plant acquired prior to 1st April 1996 and Galvanising Plant & Power
measured at fair value. The carrying value of certain monetary items Plant acquired before 1st April 2002 including addition or extension
denominated in foreign currency is translated at the exchange rates forming integral part of above plants at Sahibabad Plant has been
applicable on the date of Balance Sheet. provided on Written Down Value method and depreciation on all other
fixed assets at Sahibabad Plant and Orissa Plant has been provided on
III) USE OF ESTIMATES Straight Line Method.
The preparation of financial statements require estimates and The Economic Useful Life of all major plants at various units has
assumptions to be made that affect the reported amount of asset been determined as per technical assessment and in respect of all
and liabilities on the date of the financial statements and the reported other fixed assets the life has been taken as per Schedule-II to the
amount of the revenue and the expenses during the reporting period. Companies Act, 2013.
Difference between the actual results and estimates are recognized in
the period in which the results are known / materialized. The Economic Useful Life of Plants including auxillary equipments has
been determine below:-
IV) REVENUE/EXPENDITURE RECOGNITION
Revenue is recognized when it can be realibly measured and when
S. No. Description of Plant Life Span in Years
all significant risks and rewards/ownership are transferred to the
customer. Sales are inclusive of sales during trial run, excise duty, 1 Sinter Plant 35-38
customs duty. Exports sales are net of ocean freight, insurance and 2 Blast Furnace 35-38
discount. 3 Coke Ovens 35-38
Dividend is recognized when companys right to receive payment is 4 Rolling Mill in Steel Plant 35-38
established. Interest income is recognized on accrual basis in the 5 Basic Oxygen Furnace Converter 35-38
income statement.
6 DRI Plant 38
Expenditure is accounted for on accrual basis and provision is made 7 Tube Mill, Large Dia Pipe Plant, 35
for all known losses and obligations. H&T, HTSS
V) FIXED ASSETS 8 Power Plant (Thermal Base) 38
The initial cost of Fixed Assets comprises its purchase price, including 9 Power Plant (HSD / Gas Base) 30
import duties, net of modvat/cenvat, less accumulated depreciation 10 Lab Equipment 20
and include directly attributable costs of bringing an asset to working
condition and location for its intended use, including borrowing costs X) INVENTORIES
relating to the qualified asset over the period upto the date the asset Inventories are valued at the lower of cost or net realizable value,
is ready to commence commercial production. Adjustments arising less any provisions for obsolescence.

73
BHUSHAN STEEL LIMITED Annual Report 2015-16

Cost is determined on the following basis;. The cost of providing leave encashment and gratuity, defined
benefit plans, are determined using the Projected Unit Credit
Raw Material is recorded at cost on a first-in-first-out (FIFO) basis;
Method, on the basis of actuarial valuations carried out by
Finished goods and work-in-progress are valued at raw material third party actuaries at each balance sheet date. The leave
cost + cost of conversion and attributable proportion of encashment and gratuity benefit obligations recognized in the
manufacturing overhead incurred in bringing inventories to its balance sheet represent the present value of the obligations as
present location and condition. reduced by the fair value of Plan Assets. Any asset resulting from
this calculation is limited to the discounted value of any economic
By products and scrap are valued at net realizable value. benefits available in the form of refunds from the plan or reduction
Excise duty on closing stock of finished goods and scrap is in future contributions to the plan. Actuarial gains and losses are
accounted for on the basis of payments made in respect of goods recognized immediately in the statement of profit and loss.
cleared as also provision made for goods lying in the factory and
Xvii) TAX EXPENSE
included in the value of such stocks.
Provision for current income tax is made after taking credit for
XI) INVESTMENTS allowance and exemptions. In case of matters under appeal,
Investments are classified into Current and Non-current due to disallowance or otherwise, provision is made when the said
investments. Current investments are stated at lower of cost or liabilities are accepted by the company.
market value/fair value. Non Current investments are stated at
cost and provision for diminution in value is made only if such Minimum Alternate Tax (MAT) paid in accordance with the Income
decline is other than temporary in the opinion of management. Tax Act, 1961, which gives rise to future economic benefits in the
form of adjustment of future income tax liability, is considered as
XII) FOREIGN EXCHANGE TRANSACTIONS an asset.
 Transactions denominated in foreign currencies are normally
recorded at the exchange rate prevailing at the time of transaction. I n accordance with the Accounting Standard (AS) -22 Accounting
Monetary items denominated in foreign currency outstanding at for Taxes on Income, the Deferred tax liability for timing differences
the year end are translated at exchange rate applicable on the between the book and tax profits is accounted for using the tax
date of Balance Sheet. Non-monetary items denominated in rates and tax laws that have been enacted or substantially enacted
foreign currency are valued at the exchange rate prevailing on as of the Balance Sheet date. Deferred Tax Assets arising from
the date of transaction. Any income or expense on account of temporary timing differences are recognized to the extent there is
exchange difference either on settlement or on translation is virtual certainty that the assets can be realized in future.
recognized in the Statement of Profit and Loss except in cases of
long term monetary items, where these relate to the acquisition of XVIII) LEASES
depreciable fixed assets, are adjusted to the carrying cost of such (a) Lease Payment made on operating lease has been
assets and in other cases are amortized over the period of such recognized as an expense in the statement of Profit & Loss
long term monetary item. on straight line basis with reference to lease term and other
XIII) BORROWING COST consideration.
Borrowings Cost relating to acquisition or construction of qualifying (b) Assets acquired under finance lease from 01.04.2001 are
assets are included in the costs of those assets. A qualifying asset
capitalized at the lower of their fair value or the present value
is one that necessarily takes substantial period of time to get
of the minimum lease payments
ready for its intended use. All other borrowing costs are charged
to revenue. XIX) DERIVATIVE FINANCIAL INSTRUMENTS
XIV) MODVAT / CENVAT / VAT In respect of the financial derivative contracts the premium /
Modvat / Cenvat / Vat claimed on capital goods is credited to interest paid and profit / loss on settlement is charged to statement
Assets / Capital work in progress account. Modvat/Cenvat/Vat on of profit and loss. The contracts entered into are marked to
purchase of raw materials and other materials are deducted from market at the year end and the resultant profit / loss is charged
the cost of such materials. to statement of profit and loss except where these relate to long
XV) CLAIMS term monetary items attributable to depreciable fixed assets in
Claims receivable are accounted for depending on the certainty which case it is adjusted to the cost of fixed assets.
of receipt and claims payable are accounted for at the time of XX) PROVISION AND CONTINGENT LIABILITY
acceptance.
Show cause notices issued by various government authorities
XVI) EMPLOYEE BENEFITS
are not considered as obligation. Where the demand notices
Short term employee benefits (benefits which are payable within
are raised, the show cause notice, disputed by the company, is
twelve months after the end of the period in which the employees
classified as possible obligation.
render service) are measured at cost. Long term employee
benefits (which are payable after the end of twelve months from Provisions involving substantial degree of estimation in
end of the period in which the employees render service) and post measurement are recognized when there is a present obligation
employment benefits (benefits which are payable after completion as a result of past events and it is probable that there will be an
of employment) are measured on a discounted basis by the outflow of resources. Contingent liabilities are not recognized but
Projected Unit Credit Method on the basis of annual third party are disclosed in notes.
actuarial valuations.
XXI) CONTINGENCIES & COMMITMENTS
Contributions to Provident Fund, a defined contribution plan are In the normal course of business, contingent liabilities may arise
made in accordance with the statute, and are recognized as an
from litigation and other claims against the Company. Where the
expense when employees have rendered services entitling them
potential liabilities have a low probability of crystallizing or are
to the contribution.
very difficult to quantify reliably, these are treated as contingent
Companys contribution to state defined contribution plans namely liabilities. Such liabilities are disclosed in the notes but are not
Employee State Insurance and Maharashtra Labour Welfare fund provided for in the financial statements, although there can be no
are made in accordance with the statute, and are recognized as an assurance regarding the final outcome of the legal proceedings,
expense when employees have rendered services entitling them the company does not expect them to have a materially adverse
to the contribution. impact on the financial position or profitability.

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 Corporate overview Management reports financial statements

NOTES FORMING PART OF THE Consolidated ACCOUNTS

(` in Lacs)
As at As at
31.03.2016 31.03.2015
NOTE -2 SHARE CAPITAL
Authorised
40,00,00,000 (Previous Year 40,00,00,000) Equity Shares of `2/- Each 8000.00 8000.00
2,05,00,000 (Previous Year 1,95,00,000) Preference Shares of `100/- Each 20500.00 19500.00
28500.00 27500.00
Issued
23,06,05,220 (Previous Year 23,06,05,220) Equity Shares of `2/- Each 4612.10 4612.10
69,97,445 ( Previous Year 83,68,833) 10% Non Convertible Cumulative Redeemable Preference Shares of 6997.45 8368.83
`100/- each
34,85,000 ( Previous Year 34,85,000) 2% Non Convertible Cumulative Redeemable Preference Shares of 3485.00 3485.00
`100/- each
11,67,340 ( Previous Year 11,67,340) 1% Non Convertible Cumulative Redeemable Preference Shares of 1167.34 1167.34
`100/- each
65,00,000 ( Previous Year Nil) 12% Non Convertible Cumulative Redeemable Preference Shares of `100/- 6500.00 -
each
22761.89 17633.27
Subscribed
22,65,14,746 (Previous Year 22,65,14,746) Equity Shares of `2/- Each fully paid up 4530.29 4530.29
Amount paid up on 784 (Previous Year 784) Equity Shares forfeited of `2/- each 0.01 0.01
69,97,445 ( Previous Year 83,68,833) 10% Non Convertible Cumulative Redeemable Preference Shares of 6997.45 8368.83
`100/- each
34,85,000 ( Previous Year 34,85,000) 2% Non Convertible Cumulative Redeemable Preference Shares of 3485.00 3485.00
`100/- each
11,67,340 ( Previous Year 11,67,340) 1% Non Convertible Cumulative Redeemable Preference Shares of 1167.34 1167.34
`100/- each
65,00,000 ( Previous Year Nil) 12% Non Convertible Cumulative Redeemable Preference Shares of `100/- 6500.00 -
each
22680.09 17551.47
Paid Up
22,65,14,746 (Previous Year 22,65,14,746) Equity Shares of `2/- Each fully paid up 4530.29 4530.29
Amount paid up on 784 (Previous Year 784) Equity Shares forfeited of `2/- each 0.01 0.01
69,97,445 ( Previous Year 83,68,833) 10% Non Convertible Cumulative Redeemable Preference Shares of 6997.45 8368.83
`100/- each
34,85,000 ( Previous Year 34,85,000) 2% Non Convertible Cumulative Redeemable Preference Shares of 3485.00 3485.00
`100/- each
11,67,340 ( Previous Year 11,67,340) 1% Non Convertible Cumulative Redeemable Preference Shares of 1167.34 1167.34
`100/- each
65,00,000 ( Previous Year Nil) 12% Non Convertible Cumulative Redeemable Preference Shares of `100/- 6500.00 -
each
22680.09 17551.47

Detail of Shareholders holding more than 5% shares :

Name of Shareholders As at 31.03.2016 As at 31.03.2015
No of Shares % Held No of Shares % Held
(A) Equity Shareholders
1. Shri Brij Bhushan Singal 41103391 18.15% 41103391 18.15%
2. Shri Neeraj Singal 51480927 22.73% 51480927 22.73%
3. Bhushan Infrastructure Pvt. Ltd. 31901188 14.08% 32010805 14.13%
(B) Preference Shareholders
1. Shri Brij Bhushan Singal 1141633 6.29% 1363433 10.47%
2. Shri Neeraj Singal 2770472 15.26% 3137873 24.10%
3. Globus Realinfra Pvt. Ltd. (Formerly SUR Buildcon Pvt. Ltd.) 6501500 35.82% - -
4. BBN Transportation Pvt. Ltd. - - 663500 5.10%
5. Bhushan Finance Pvt. Ltd. - - 548810 4.21%
6. Robust Transportation Pvt. Ltd. - - 457067 3.51%

75
BHUSHAN STEEL LIMITED Annual Report 2015-16

Reconciliation of number of shares outstanding is set out below:

Particulars As at 31.03.2016 As at 31.03.2015
No of Shares Amount No of Shares Amount
(` in Lacs) (` in Lacs)
(A) Equity Shares
At the beginning of the year 226514746 4530.29 226514746 4530.29
Add : Shares Issued - Call received - - - -
Less: Shares forfeited - - - -
At the end of the year 226514746 4530.29 226514746 4530.29
(B) Preference Shares (Non Convertible Cumulative
Reddemable Preference Shares)

10% Preference Shares

At the beginning of the year 8368833 8368.83 8235433 8235.43
Add : Shares Issued - - 133400 133.40
Less: Shares Redeemed 1371388 1371.38 - -
At the end of the year 6997445 6997.45 8368833 8368.83

4% Preference Shares
At the beginning of the year - - 336751 336.75
Add : Shares Issued - - - -
Less: Shares Redeemed - - 336751 336.75
At the end of the year - - - -

25% Preference Shares

At the beginning of the year - - 400000 400.00
Add : Shares Issued - - - -
Less: Shares Redeemed - - 400000 400.00
At the end of the year - - - -

2% Preference Shares
At the beginning of the year 3485000 3485.00 1400000 1400.00
Add : Shares Issued - - 2085000 2085.00
Less: Shares Redeemed - - - -
At the end of the year 3485000 3485.00 3485000 3485.00

1% Preference Shares
At the beginning of the year 1167340 1167.34 - -
Add : Shares Issued - - 1167340 1167.34
Less: Shares Redeemed - - - -
At the end of the year 1167340 1167.34 1167340 1167.34

12% Preference Shares

At the beginning of the year - - - -
Add : Shares Issued 6500000 6500.00 - -
Less: Shares Redeemed - - - -
At the end of the year 6500000 6500.00 - -

The holders of Equity Shares has one vote for each equity share held by them.The registered holders of Equity Shares are entitled to dividend declared
from time to time. The Preference Shareholders are entitled to pro-rata dividend in preference over Equity Shareholders . The dividend is cumulative at
the rate specified against each category .
The premium on redemption of preference shares to the extent of premium received on issue will be adjusted against the security premium account and
any premium paid over the above said amount shall be paid out of current appropriation / General Reserve.
The Preference Share are not convertible in Equity.For terms of redemption (Refer Note 32).

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 Corporate overview Management reports financial statements

(` in Lacs)
As at As at
31.03.2016 31.03.2015
NOTE-3 RESERVES & SURPLUS
Capital Redemption Reserve:
At Commencement of the year 693.34 693.34
Add : Transferred from surplus - -
693.34 693.34
Capital Reserve:
At Commencement of the year 25222.98 24947.86
Add : Addition during the year (Refer Note 43) 538.43 270.10
Add : On Consolidation/deconsolidation of Subsidiaries (Net) - 5.02
25761.41 25222.98
Debenture Redemption Reserve :
At Commencement of the year 44762.50 44762.50
Add : Transferred from surplus - -
44762.50 44762.50
Less : Transferred to General Reserve 8,250.00 -
36512.50 44762.50
Foreign Currency Translation Reserve:
At Commencement of the year (72.93) (72.93)
Add: Adjustment for Translation of non-integral Foreign operation - -
(72.93) (72.93)
Securities Premium Reserve:
At Commencement of the year 329731.94 330785.68
Add : Addition during the Year - 16628.28
Less: Utilised for redemption of Preference shares 37304.66 17682.02
292427.28 329731.94
General Reserve:
At Commencement of the year 496311.37 500050.00
Add : Transferred from Debenture Redemption Reserve 8,250.00 -
Less: Interim Dividend on Redemption of Preference Shares (Refer Note 46) - 5.13
Less: Dividend Tax Paid on Interim Dividend - 0.87
Less: Premium paid on redemption of Preference Shares* - 3732.63
504561.37 496311.37
Surplus:
At Commencement of the year (125587.10) 89.50
Less: Difference between audited and unaudited result 20.62 -
Add: Net Profit / (Loss) for the Current Year (291139.19) (125676.60)
Net Surplus (416746.91) (125587.10)
443136.06 771062.10

* The premium paid on redemption of Preference Shares over the amount of security premium received on issue of preference shares has in absence of
profit for the same, being adjusted out of general reserve.

77
BHUSHAN STEEL LIMITED Annual Report 2015-16

(` in Lacs)
As at As at
31.03.2016 31.03.2015
NOTE-4 LONG-TERM BORROWINGS
SECURED
Non Convertible Debentures 146050.00 203000.00
(Foot note 1 to 9 )
Term Loan
1. From Banks
- Foreign Currency Loans (Foot note 10) 890522.08 835468.93
- Rupee Loans (Foot note 11) 2335454.19 2072679.37
2. From Other
- Rupee Loans (Foot note 12) 60674.45 33594.83
Total (A) 3432700.72 3144743.13
UNSECURED
Term Loan
From Bank
- Rupee Loan 9765.00 -
Foreign Currency Loans
- From Indian Banks - -
- From Foreign Banks (Foot note 13) 292.83 263.25
- From Others 3008.50 2704.63
Total (B) 13066.33 2967.88
Total (A+B) 3445767.05 3147711.01
Less: Current Maturity of Long Term Borrowings (Refer Note 49) 108380.20 54938.79
Less: Repayment Overdue on Long Term Borrowings (Refer foot Note 26) 104784.72 -
3232602.13 3092772.22

Foot Note: of allotment i.e 28.03.2013 and are Secured by first charge on pari
passu basis on the fixed assets of the Company.
(1) 12.00% Redeemable Non-Convertible 250 Debentures of `10 Lacs
each outstanding on 31st March 2016 `2500 Lacs (Previous Year (6) 11.75% Redeemable Non-Convertible 3000 Debentures of Rs10 Lacs
12.00% Redeemable Non-Convertible 250 Debentures of `10 Lacs each outstanding on 31st March 2016 `30000 Lacs (Previous Year
each outstanding on 31st March 2015 `2500 Lacs).Debentures are 11.75% Redeemable Non-Convertible 3000 Debentures of `10 Lacs
redeemable at par in one bullet payment at the end of 10th year each outstanding on 31st March 2015 `30000 Lacs) are redeemable
from the date of allotment i.e 31.08.2012 and are Secured by first in three equal annual installments commencing from the end of 5th
charge on pari passu basis on the fixed assets of the Company year from the date of allotment i.e 02.02.2012 and are Secured by
offering minimum Fixed Asset Coverage Ratio of 1.25 times during first charge on pari passu basis on the fixed assets of the Company.
the tenure of debentures and personal guarantee of Sh. B.B.Singal &
Sh. Neeraj Singal. (7) 12.00% Redeemable Non-Convertible 4750 Debentures of `10 Lacs
each outstanding on 31st March 2016 `4000 Lacs (Previous Year
(2) 12.50% Redeemable Non-Convertible 2000 Debentures of `10 Lacs 12.00% Redeemable Non-Convertible 4750 Debentures of `10 Lacs
each outstanding on 31st March 2016 `20000 Lacs (Previous Year each outstanding on 31st March 2015 `47500 Lacs).Debentures are
12.50% Redeemable Non-Convertible 2000 Debentures of `10 Lacs redeemable at the end of 4th, 5th and 6th year in installments 35%,
each outstanding on 31st March 2015 `20000 Lacs) are redeemable 35% & 30% respectively commencing at the end of 4th year from
in three equal annual installments commencing from the end of 5th the date of allotment i.e 31.08.2012.
year from the date of allotment i.e 30.08.2013 and are Secured by
first charge on pari passu basis on the fixed assets of the Company. (8) 10.50% Redeemable Non-Convertible 3000 Debentures of `10 Lacs
each outstanding on 31st March 2016 `30000 Lacs (Previous Year
(3) 12.00% Redeemable Non-Convertible 100 Debentures of `100 10.50% Redeemable Non-Convertible 3000 Debentures of `10 Lacs
Lacs each oustanding on 31st March 2016 `NIL (Previous Year each outstanding on 31st March 2015 `30000 Lacs ) Debentures are
12.00% Redeemable Non Convertible Debentures of `100 Lacs each redeemable at par in three equal anuual installments commencing
oustanding on 31st March 2015 `10000 Lacs) (subordinate debt). from the end of 6th year from the date of allotment i.e 13.08.2010
and are Secured by first charge on pari passu basis on the fixed
(4) 11.50% Redeemable Non-Convertible 3500 Debentures of `10 Lacs assets of the Company.
each outstanding on 31st March 2016 `35000 Lacs (Previous Year
11.50% Redeemable Non-Convertible 3500 Debentures of `10 Lacs (9) 10.90% Redeemable Non-Convertible 1750 Debentures of `10 Lacs
each outstanding on 31st March 2015 `35000 Lacs) are redeemable each outstanding on 31st March 2016 `14050 Lacs (Previous Year
in three equal annual installments commencing from the end of 5th 10.90% Redeemable Non-Convertible 1750 Debentures of `10 Lacs
year from the date of allotment i.e 04.01.2013 and are Secured by each outstanding on 31st March 2015 `17500 Lacs) are redeemable
first charge on pari passu basis on the fixed assets of the Company. at par in four equal annual installments commencing from the end of
5th year from the deemed date of allotment i.e 26.08.2010 and are
(5) 12.00% Redeemable Non-Convertible 1050 Debentures of `10 Lacs Secured by first charge on pari passu basis on the fixed assets of the
each outstanding on 31st March 2016 `10500 Lacs (Previous Year Company.Out of the above debentures of ` 925 Lacs could not be
12.00% Redeemable Non-Convertible 1050 Debentures of `10 Lacs redeemed during the year.
each outstanding on 31st March 2015 `10500 Lacs) are redeemable
at the end of 4th,5th and 6th year in installments 35%,35% & 30% (10) Secured by first mortgage charge on all of the companys immovable
respectively commencing from the end of 4th year from the date & movable properties both present and future including movable

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 Corporate overview Management reports financial statements

machinery, spares, tools & accessories (excluding specific charge (16) Foreign Currency Loans for Phase I & II of Orissa project was
created on favour of ECA Lenders), ranking pari passu inter-se, with sanctioned at interest rate of EURIBOR + 0.45% (Presently 0.499%
the trustee of Debenture holders subject to prior charges created p.a.) repayable in 20 Half Yearly Installments commencing from six
in favour of banks on stocks,book debts etc. for securing borrowing Months after completion of the project as per terms stipulated in
for working capital requirement,except `26533 Lacs (Previous Year respective loan/facility agreement/s.However in principle approval/
` 25036 Lacs) secured by subsequent & subservient charge on communication has been received for the deferment of the principal
movable assets.Out of the above, the ECA Loans of ` 265001 Lacs installments.Now the revised payments will commence from HY2 of
(Previous Year `239255 Lacs) financed by ECA Lenders are secured FY 2018-19 in 10 equal semi annual installments.
by first exclusive charge on the assets financed & personal guarantee
of two promoter directors. Loans of ` 890522 Lacs (Previous Year (17) Domestic Loans sanctioned by SBI Syndication for Phase III of Orissa
` 835469 Lacs) are guaranteed by the Personal Guarantee of two project was sanctioned at rate of interest of SBI Base Rate+2.50%
promoter directors. and repayable in 17 quarterly installments commencing from 18
months after completion of the project as per terms stipulated in
(11) Secured by first mortgage charge on all of the companys immovable respective loan/facility agreement/s.Now these loans have been
& movable properties both present and future including movable structured under 5/25 flexible structuring scheme of RBI upto 25
machinery, spares, tools & accessories (excluding specific charge years @ SBI Base Rate+2.50% p.a (presently 11.80% p.a.).
created in favour of ECA Lenders) ranking pari passu inter-se, with
the trustee of Debenture holders subject to prior charges created (18) Foreign Currency Loans for Phase III of Orissa project was
in favour of banks on stocks,book debts etc. for securing borrowing sanctioned at interest rate of EURIBOR+1.50% ( Presently 1.506%
for working capital requirement,except `NIL (Previous Year `15700 p.a.) repayable in 20 half yearly installments commencing from 6
Lacs) secured by subsequent & subservient charge on movable Months after completion of the project as per terms stipulated in
assets.Loans of `2281459 Lacs (Previous Year `1662104 lacs) are respective loan/facility agreement/s.However in principle approval/
guaranteed by the Personal Guarantee of two promoter directors & communication has been received for the deferment of the principal
Loans of `53995 Lacs (Previous Year `410576 Lacs) are guaranteed installments.Now the revised payments will commence from HY2 of
by the Personal Guarantee of One Promoter Director.Apart from FY 2018-19 in 16 equal semi-annual installments.
this,Loans of `429910 Lacs are/to be secured by pledge of 26% (19) Another Foreign Currency Loan sanctioned for Phase III of the
shares of Bhushan Steel Limited and Loans of `1589229 Lacs are/ Orissa Project at interest rate of USD LIBOR+3.95% repayable in 6
to be secured by pledge of 51% shares of Bhushan Steel Limited. annual installments commencing from 36 Months after completion
(12) Secured by first mortgage charge on all of the companys immovable of the project as per terms stipulated in respective loan/facility
& movable properties both present and future including movable agreement/s.
machinery, spares, tools & accessories (excluding specific charge (20) Another Foreign Currency Loan sanctioned for Phase III of the Orissa
created in favour of ECA Lenders) ranking pari passu inter-se, with Project at interest rate of Euribor+1.75% (Presently 2.055% p.a.)
the trustee of Debenture holders subject to prior charges created in repayable in 18 half yearly installments commencing from three
favour of banks on stocks,book debts etc. for securing borrowing for Months after completion of the project as per terms stipulated in
working capital requirement,except `931 Lacs (Previous Year `1345 respective loan/facility agreement/s. However in principle approval/
Lacs) secured by subsequent & subservient charge on movable communication has been received for the deferment of the principal
assets.Loans of `58722 Lacs (Previous year `30000 Lacs) are installments. Now the revised payments will commence from HY2 of
guaranteed by the Personal Guarantee of Two Promoter Directors FY 2018-19 in 15 equal semi annual installments.
& Loans of `1021 Lacs (Previous Year `2250 Lacs) are guaranteed
by the Personal Guarantee of One Promoter Director.Apart from (21) Domestic Loans sanctioned for Coke Oven 2 of Orissa project was
this,Loans of `8958 Lacs are/to be secured by pledge of 51% shares sanctioned at rate of interest of Base Rate+2.50% and repayable
of Bhushan Steel Limited. in 24 quarterly installments commencing from 15 Months after
completion of the project as per terms stipulated in respective
(13) Out of these Loans of `293 Lacs (Previous Year `263 Lacs) are loan/facility agreement/s. Now these loans have been structured
guaranteed by the Personal Guarantee of Two Promoter Directors. under 5/25 flexible structuring scheme of RBI upto 25 years @ Base
*This includes `55932 Lacs on account of ECA loans for which in Rate+1.75% p.a (presently 11.60% p.a.).
principle approval for restructuring is already received.This default (22) Foreign Currency Loans for Coke Oven 2 of Orissa Project was
will be automatically removed on receiving of final approval for sanctioned at interest rate of USD LIBOR + 4.50% repayable in
restructuring from ECA Lenders. 12 half yearly installments commencing from 15 Months after
Detail of Repayment and Rate of Interest completion of the project as per terms stipulated in respective loan/
facility agreement/s. Now these loans have been structured under
Rate of Interest: All Rupee Term Loans are linked to the Benchmark 5/25 flexible structuring scheme of RBI upto 25 years.
Rate/Base Rate of the respective lenders on floating basis.All Foreign
Currency Loans are linked to the LIBOR Rates of different lenders on (23) Domestic Loans sanctioned for CRCA & CRNGO Project of Orissa
floating basis. project was sanctioned at rate of interest of Base Rate+2.25% and
repayable in 24 quarterly installments commencing from 12 Months
(14) Maturity Profile of Long Term Borrowing (Other than NCDs) are set after completion of the project as per terms stipulated in respective
out as below: loan/facility agreement/s. Now these loans are being considered in
(`in Lacs) 5/25 flexible structuring scheme of RBI upto 25 years. Now these
loans have been structured under 5/25 flexible structuring scheme
of RBI upto 25 years @ Base Rate+2.00% p.a. (11.85% p.a. at
Already 1 year 2-3 Years Beyond 3
present).
Due years
(24) Domestic Loans sanctioned for Addition,Modification & Replacement
Term Loans 103860 78930 204965 2911963
Project at Orissa Site was sanctioned at rate of interest of Base
(15) Domestic Loans sanctioned by SBI Syndication for Phase I & II Rate+TP+1.25% and repayable in 32 quarterly installments
of Orissa project was sanctioned at rate of interest of SBI Base commencing from 3 Months after completion of the project as per
Rate+2.00% and repayable in 24 quarterly installments commencing terms stipulated in respective loan/facility agreement/s. Now these
from 24 Months after completion of the project as per terms loans are being considered in 5/25 flexible structuring scheme of
stipulated in respective loan/facility agreement/s. Now these loans RBI upto 25 years. Now these loans have been structured under
have been structured under 5/25 flexible structuring scheme of RBI 5/25 flexible structuring scheme of RBI upto 25 years @ SBI Base
upto 25 years @ SBI Base Rate+2.50% p.a (presently 11.80% p.a.) Rate+2.50% p.a. (11.80% p.a. at present).

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BHUSHAN STEEL LIMITED Annual Report 2015-16

(25) Domestic Loans sanctioned for shoring up of Net Working Capital/Normal Capital Expenditure was sanctioned at rate of interest of SBI Base
Rate+2.50% (Presently 11.80% p.a.) and repayable in 40 quarterly installments commencing from 30th June 2016, as per terms stipulated in
respective loan/facility agreement/s.
Rate of interests of other Term Loans/Foreign Currency Loans are linked with the Base Rate/LIBOR of the respective lenders.
(26) Rapayment default on Long Term Borrowings

(` in Lacs)
Principal Interest
Amount Amount
SECURED
Non Convertible Debentures 925.00 20638.12
Term Loan
1. From Banks
- Foreign Currency Loans 82719.91 13267.19
- Rupee Loans 19641.33 95057.18
2. From Others
- Rupee Loans 1205.65 1803.13
Total (A) 104491.89 130765.62
UNSECURED
Term Loan
From Bank
- Rupee Loan - 192.91
Foreign Currency Loans
- From Others 292.83 1.12
Total (B) 292.83 194.03
Total (A+B) 104784.72 130959.65

As at As at
31.03.2016 31.03.2015
NOTE-5 DEFERRED TAX LIABILITIES (NET)
Deferred Tax Liability (Refer Note 53)
Related to Fixed Assets 105669.93 138933.41
Total (A) 105669.93 138933.41
Deferred Tax Assets
Business Loss (As per Income Tax Act) 39606.83 -
Provision of Doubtful Debts 885.56 540.55
Others 1218.28 985.67
Total (B) 41710.67 1526.22
Total (A-B) 63959.26 137407.19

NOTE-6 OTHER LONG-TERM LIABILITIES

Liability for Capital Goods/ Expenditure 51134.89 55774.25
Security Deposit Received from Customers 82.92 74.75
Others* 12839.45 8131.29
64057.26 63980.29

* Others include Insurance claim received, security deposit received and amount hold from contractors.

NOTE-7 LONG TERM PROVISIONS

Provision for Employee Benefits - 1.51
- 1.51

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 Corporate overview Management reports financial statements

(` in Lacs)
As at As at
31.03.2016 31.03.2015
NOTE-8 SHORT TERM BORROWING
SECURED
Working Capital Loans
From Banks
Cash Credit
- Foreign Currency Loans (Foot note 1) 51900.14 31570.31
- Rupee Loans (Foot note 1) 924910.04 666181.38
Total (A) 976810.18 697751.69
UNSECURED
From Bank
Rupee Loan
- Term Loan 5080.00 13645.00
Foreign Currency Loans
- From Indian Banks (Buyers Credit) 21060.26 48757.76
Total (B) 26140.26 62402.76
Total (A+B) 1002950.44 760154.45
Foot Note :
(1) Working Capital Loans are secured by hypothecation of stock & book debts,second charge on companys land,building and other immovable properties
ranking pari passu inter-se and personal guarantee of two promoter directors.
(2) The Company is enjoying working capital facility of `1260000 Lacs (funded and non funded) and there is outstanding of `976810.18 Lacs as on 31st
March, 2016, which includes overdrawn amount of `388595 Lacs.

NOTE-9 TRADE PAYABLES

Micro, Small and Medium Enterprises 404.62 539.03
Others 117240.87 273400.08
117645.49 273939.11
The detail of amount outstanding to Micro, Small and Medium Enterprises based on available information
with the company is as under:
Particulars
Principal amount due and remaining unpaid - -
Interest due on above and the unpaid interest - -
Interest Paid - -
Payment made beyond the appointed day during the year - -
Interst due and payable for the period of delay - -
Interest accrued and remaining unpaid - -
Amount of further interest remaining due and payable in succeeding years - -

NOTE-10 OTHER CURRENT LIABILITIES

Current Maturities of Long Term Debts 108380.20 54938.79
Repayment Overdue on Long Term Debts 103859.72 -
Unpaid matured debentures including interest accrued 985.50 -
Interest Accrued & Due on borrowings 144649.00 45006.67
Interest Accrued but not due on borrowings 12713.06 33978.72
Unclaimed Dividend * 14.93 16.76
Statutory Dues 45499.24 19009.24
Due to Directors 24.21 17.03
Due to Officers 1.58 1.46
Liability for Capital Goods / Expenditure** 9867.58 9658.62
Other Payables (Refer Note 54) 31966.25 9540.86
457961.27 172168.15
* Do not include any amounts, due and outstanding, to be credited to Investors Education and Protection Fund.
**Includes `35.05 Lacs (Previous Year `1.34 Lacs) on account of Micro, Small & Medium Enterprises and `19.99 Lacs on account of interest thereon.

NOTE-11 SHORT TERM PROVISIONS

Provision for Employee Benefits 3520.24 2848.10
3520.24 2848.10

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BHUSHAN STEEL LIMITED Annual Report 2015-16

NOTE-12 FIXED ASSETS (Consolidated )

(` in Lacs)
DESCRIPTION GROSS BLOCK DEPRECIATION / AMORTIZATION NET BLOCK
OF ASSETS Cost as at Addition Sale/ Adjustment Cost as at As at During Written Adjustment Upto As at As at
01.04.2015 During Discarded During 31.03.2016 01.04.2015 the Period Back During 31.03.2016 31.03.2016 31.03.2015
the Period During the Period During the Period
the Period the Period
Tangible Assets

Freehold Land 24279.55 - - - 24279.55 - - - - - 24279.55 24279.55

Leasehold Land 20578.62 - - - 20578.62 211.21 14.63 - - 225.84 20352.78 20367.41
Building 702444.16 - 21.24 - 702422.92 66589.64 20660.04 1.90 - 87247.78 615175.14 635854.52
Railway Siding 91600.04 - - - 91600.04 10857.32 5946.69 - - 16804.01 74796.03 80742.72
Plant & Equipment 3311171.58 36473.97 1273.62 65676.77 3412048.70 423447.62 81072.20 1255.05 - 503264.77 2908783.93 2887723.96
Furniture & Fixtures 5750.07 45.29 7.74 - 5787.62 931.29 556.67 1.65 - 1486.31 4301.31 4818.78
Vehicles 4548.58 161.08 117.53 - 4592.13 2742.91 481.59 101.10 - 3123.40 1468.73 1805.67
Office Equipments 1284.03 56.54 0.21 - 1340.36 538.56 234.78 0.18 - 773.16 567.20 745.47
Tangible Assets 4161656.63 36736.88 1420.34 65676.77 4262649.94 505318.55 108966.60 1359.88 - 612925.27 3649724.67 3656338.08
Total (A)
Intangible Assets
Computer Software 749.80 7.99 - - 757.79 710.77 39.36 - - 750.13 7.66 39.03
Assets Not Owned 5824.44 968.59 - - 6793.03 5824.44 968.59 - - 6793.03 - -
by Company
Intangible Assets 6574.24 976.58 - - 7550.82 6535.21 1007.95 - - 7543.16 7.66 39.03
Total (B)
TOTAL (A+B) 4168230.87 37713.46 1420.34 65676.77 4270200.76 511853.76 109974.55 1359.88 - 620468.43 3649732.33 3656377.11
Previous Year 2611871.12 1025549.91 98443.71 629253.55 4168230.87 424296.58 95388.31 3247.53 4583.60 511853.76
Capital Work in Progress 313934.83 278732.84
[Includes Pre-operative expenses]
GRAND TOTAL 3963667.16 3935109.95
Notes:

1. Certain Building Under Posession of the Company are pending registration in the name of the Company.

2. No write off has been done for lease hold land acquired on lease of 90 years and more.

3. Depreciation for the year includes `Nil (Previous Year `1548.46 Lacs) charged to Capital Work In Progress.

4. Adjustment during the year includes addition of `65676.77 Lacs (Previous Year `633837.15 Lacs) on account of borrowing cost / exchange fluctuation and deduction of `Nil
(Previous Year `4583.60 Lacs) for depreciation capitalised during installation period.

(` in Lacs)
As at 31.03.2016 As at 31.03.2015
NOTE-13 NON CURRENT INVESTMENT
(Long-Term, Fully Paid Up)
In Equity Shares
Non Trade, Quoted
Tata Steel Ltd.
13,500 (Previous Year 13,500) Equity Shares of `10/- each 58.08 58.08
Rocklands Rich Fields Ltd.
2,000 (Previous Year 2,000) Ordinary Shares of AUD 0.20 each 0.21 0.21
58.29 58.29
In Equity Shares
Unquoted
Bhushan Buildwell Pvt. Ltd.
4,900 (Previous Year 4,900) Equity Shares of `10/- each 0.49 0.49
Saraswat Co-operative Bank Ltd.
2,500 (Previous Year 2,500) Equity Shares of `10/- each 0.25 0.25
0.74 0.74
Trade
Unquoted
In Associates
Bhushan Energy Limited
(including Goodwill of `570.33 Lacs)
6,50,00,000 (Previous Year 6,50,00,000) Equity Shares of `10/- 35000.00 35000.00
each
Add: Share of Post Acquisition Profit (6873.67) 360.58
28126.33 35360.58

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 Corporate overview Management reports financial statements

(` in Lacs)
As at 31.03.2016 As at 31.03.2015
Angul Sukinda Railway Ltd.
Nil Share (Previous Year 8,40,00,000) Equity Share of `10/- Each - 1000.00
Paid up @ `1.19 Each
Less: Dimuniation in the value of Investment - 1000.00
(Refer Note 33) - -
Jawahar Credit & Holdings Private Limited
(including Capital Reserve of `3004.95 Lacs)
86,43,742 (Previous Year 86,43,742) Equity Shares of `10/- each 940.31 940.31
Add: Share of Post Acquisition Profit / (Loss) (2.05) (1.82)
938.26 938.49
Bhushan Capital & Credit Services Private Limited
(including Capital Reserve of `2640.15 Lacs)
86,43,742 (Previous Year 86,43,742) Equity Shares of `10/- each 940.31 940.31
Add: Share of Post Acquisition Profit / (Loss) (2.31) (2.05)
938.00 938.26
30002.59 37237.33
In Others
Bhushan Steel Bengal Ltd.
50,000 (Previous Year 50,000) Equity Shares of `10/- each 5.00 5.00
5.00 5.00
30066.62 37301.36
30066.62 37301.36

Aggregate Value of Book Value Market Value Book Value Market Value
Quoted Investments 58.29 43.34 58.29 42.98
Unquoted Investments 30008.33 - 37243.07 -

NOTE-14 LONG TERM LOANS AND ADVANCES

(Unsecured, considered good)
Advance For Capital Goods 17250.69 55361.97
Security Deposits 13466.24 13184.88
Loans to Employees 123.88 167.95
MAT Recoverable 80605.55 80605.55
Advance Tax (Net) 2328.43 1784.61
Excise Duty Recoverable / Service Tax Recoverable 1501.02 655.57
Other Advances * 315.62 1652.54
115591.43 153413.07
*Other Advances Include Advance Recoverable from Sales Tax Department etc.

NOTE-15 OTHER NON CURRENT ASSETS

Non Current Fixed Deposits
- Non Current Fixed Deposits (Refer Note-19) 2440.14 2459.23
Other Receivable (Refer Note-48) 56863.28 -
59303.42 2459.23

NOTE-16 CURRENT INVESTMENTS

QUOTED (FULLY PAID)
Vector Resources Ltd.
8,55,000 (Previous Year 8,55,000) shares of AUD 0.20 each 2.58 2.06
2.58 2.06

Aggregate Value of Book Value Market Value Book Value Market Value
Quoted Investment 2.58 2.58 2.06 2.06

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BHUSHAN STEEL LIMITED Annual Report 2015-16

(` in Lacs)
As at As at
31.03.2016 31.03.2015
NOTE-17 INVENTORIES
(At Lower of Cost and Net Realisable Value)
Raw Material 26063.05 32822.19
Raw Material In Transit 652320.01 509345.90
Finished Goods 48318.96 64753.13
Finished Goods In Transit 4208.36 3069.87
Work-in-Progress 53811.40 33564.69
Work-in-Progress In Transit 10043.70 10337.12
Stores 78373.10 73500.29
Stores In Transit 967.99 -
Others 6751.86 4730.12
880858.43 732123.31

NOTE-18 TRADE RECEIVABLES

(Unsecured )
More than Six Months
- Considered Good 4938.05 5257.02
- Considered Doubtful 2558.85 1561.93
7496.90 6818.95
Less: Provision 2558.85 1561.93
4938.05 5257.02
Others - Considered Good 230177.68 234571.53
235115.73 239828.55

NOTE-19 CASH AND BANK BALANCES

Cash and Cash Equivalants
Balances with Banks
- In Current Account 3140.13 7695.48
- In Unpaid Dividend Account 14.93 16.76
Fixed Deposit having maturity period within 3 months* - 35.52
Cash on Hand 92.94 91.65
Others
Fixed Deposits having maturity period :-
- For more than 12 Months * 3103.93 3395.33
- 3 to 12 Months * 12475.15 53.59
18827.08 11288.33
Less : Non Current Fixed Deposit 2440.14 2459.23
16386.94 8829.10
*(Including interest accrued but not due)
*{Including `15568.74 Lacs (Previous Year `3474.50 Lacs) under bank lien}

NOTE-20 SHORT TERM LOANS AND ADVANCES

(Unsecured, considered good)
Security Deposits 9049.41 9033.11
Loans to Employees 337.72 499.45
Balance with Excise Department 13.70 44.62
Excise Duty / Service Tax Recoverable 23898.84 25741.11
Inter Corporate Deposits (Including Interest Accrued) 1916.45 3689.65
Other Advances* 74584.49 84683.17
109800.61 123691.11
*Include Amount Recoverable from Sales Tax Department, advance to suppliers etc. and `24.55 Lacs (Previous Year NIL) receivable from related Party.

NOTE-21 OTHER CURRENT ASSETS

Receivable against sale of Fixed Assets 1019.92 62423.92
1019.92 62423.92

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 Corporate overview Management reports financial statements

(` in Lacs)
Year Ended 31.03.2016 Year Ended 31.03.2015
NOTE-22 REVENUE FROM OPERATION
Sales of Products 1267674.00 1117171.81
Other Operating Revenue
Other Sale 41198.12 51543.89
Export Incentives 3534.65 4786.02
1312406.77 1173501.72
PARTICULARS OF SALE OF PRODUCTS
Hot Rolled Steel Strips / Sheets / Coils 502414.12 357327.53
Cold Rolled Steel Strips / Sheets / Coils 267742.86 260687.69
Cold Rolled Galvanised Steel Strips / Sheets / Coils 275478.52 257750.43
Colour Coated Galvanised Steel Strips / Sheets / Coils 89098.18 102488.78
Precesion Tubes 84047.09 81218.58
Large Dia Pipe 12146.52 14237.56
Hardening & Tempring Cold Rolled Steel Strips 16651.60 17339.02
High Tensile Steel Strapings 3632.33 4801.44
Billets 16186.26 20948.59
Formed Section 276.52 372.19
Others 41198.12 51543.89
Export Incentives 3534.65 4786.02
1312406.77 1173501.72

NOTE-23 OTHER INCOME

Interest Earned*
- From Bank on FDRs 611.08 305.40
- From Others 717.22 1328.30 496.12 801.52
Dividend:
-From Long Term Non - Trade Investments 0.04 1.38
Profit on Sale of Fixed Assets (Net) 842.01 320.13
FCTR transferred on deregistration 1.53 -
Dimuniation in the value of investment written back 0.52 -
Miscellaneous Income** (Refer Note 44) 93.57 61.04
2265.97 1184.07
* Including Income Tax Deducted at Source `50.31 Lacs (Previous Year `29.89 Lacs) and Excluding Interest earned `0.28 Lacs (Previous Year `318.29
Lacs) transferred to projects.
** Including Income Tax Deducted at source `0.95 Lacs (Previous Year `0.50 Lacs).

NOTE-24 COST OF RAW MATERIAL CONSUMED

Cost of Raw Material Consumed 657167.29 570940.93
Less : Cost of Raw Material Transferred to Project / Internal Use 2283.89 2473.02
654883.40 568467.91
PARTICULARS OF MATERIALS CONSUMED
HR / CR / Steel Scrap 189592.60 166011.83
Iron Ore / Sponge Iron 149181.15 129304.61
Coal 225573.24 199157.28
Dolomite / Lime 31219.56 19298.12
Zinc and Alloys 52081.92 47790.73
Paints 9518.82 9378.36
657167.29 570940.93

NOTE-25 COST OF PURCHASE GOODS TRADED

Cost of Purchase Goods Traded 259.11 4831.81
259.11 4831.81

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BHUSHAN STEEL LIMITED Annual Report 2015-16

(` in Lacs)
Year Ended 31.03.2016 Year Ended 31.03.2015
NOTE-26 CHANGE IN INVENTORIES OF FINISHED GOODS,
WORK- IN -PROGRESS AND STOCK IN TRADE
Inventories (at close)
Finished Goods 52527.32 67823.00
Work-in-Progress 63855.10 43901.81
Others 6751.86 4730.12
123134.28 116454.93
Inventories (at beginning)
Finished Goods 67823.00 52651.75
Work-in-Progress 43901.81 81628.87
Others 4730.12 3940.81
116454.93 138221.43
Net (Increase)/Decrease in Stock (6679.35) 21766.50

DETAIL OF FINISHED GOODS Closing Stock Opening Stock Closing Stock Opening Stock
Hot Rolled Steel Strips / Sheets / Coils 17588.26 28519.92 28519.92 5870.94
Cold Rolled Steel Strips / Sheets / Coils 10594.84 12775.30 12775.30 12432.44
Cold Rolled Galvanised Steel Strips / Sheets / Coils 12348.40 14147.92 14147.92 15573.15
Colour Coated Galvanised Steel Strips / Sheets / Coils 3412.35 3225.49 3225.49 6940.74
Precision Tubes 5643.02 5482.62 5482.62 5936.71
Large Dia Pipe 1555.94 2039.09 2039.09 2961.80
Hardened & Tempered Cold Rolled Steel Strips 696.52 750.74 750.74 1277.54
High Tensile Steel Strapings 137.05 413.44 413.44 356.74
Billets 544.80 464.60 464.60 1289.42
Formed Sections 6.14 3.88 3.88 12.27
52527.32 67823.00 67823.00 52651.75

NOTE NO- 27 EMPLOYEE BENEFITS EXPENSE

Salary,Wages & Bonus 43250.89 33029.02
Contribution to P.F. and Other Funds 1161.77 1011.38
Staff Benefits 410.66 399.22
44823.32 34439.62
Less : Expenses Transferred to Project Under Commissioning / Pre 1574.09 8686.73
Operative Expenses
43249.23 25752.89

NOTE-28 FINANCE COSTS

Interest Expenses 465462.20 448287.18
Other Financial Cost 14481.26 15583.90
Applicable loss on foreign currency transactions and translation 1257.26 1367.88
481200.72 465238.96
Less: Borrowing cost transferred to Project Under Commissioning 22970.34 215836.35
/ Trial Run
458230.38 249402.61

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 Corporate overview Management reports financial statements

(` in Lacs)
Year Ended Year Ended
31.03.2016 31.03.2015
NOTE-29 OTHER EXPENSE
Stores Consumed 40325.41 31602.17
Packing Material Consumed 5113.76 4315.09
Power & Fuel 122925.99 124262.03
Repairs & Maintenance
- Plant & Machinery 3534.41 2852.29
- Buildings 187.16 303.51
Exchange Fluctuation (Net) 2552.22 726.43
Excise Duty # (1630.22) 2965.89
Rates & Taxes 903.55 3701.75
Administrative Expenses 13234.48 19028.60
Legal & Professional Expenses 1124.35 845.46
Rent 22391.00 5895.56
Insurance 1830.75 2137.20
Auditors' Remuneration 119.10 166.54
Dimuniation in the value of investment - 7.40
Selling & Distribution Expenses 75288.40 50208.35
Commission to Selling Agents 500.05 503.58
Bad Debts Written off 0.28 123.23
Provision for Doubtful Debts 996.92 260.49
289397.61 249905.57
Less: Transfer to Project under Commissioning
Pre-operative Expenses / Trial Run Expenses (Net) 9438.28 23384.19
279959.33 226521.38
# Excise Duty shown under expenditure represents the aggregate of excise duty borne by the company and difference between excise duty on opening
and closing stock of finished goods.

NOTE-30 EXCEPTIONAL ITEMS (Refer Note 33)

Dimuniation in the value of Investment - 1000.00
Investment written off 1000.00 -
Provision of Investment written back (1000.00) -
(Long term, Trade, in associate)
- 1000.00

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BHUSHAN STEEL LIMITED Annual Report 2015-16

NOTE : 31  (` in Lacs)

Current Year Previous Year

1. Contingent Liabilities in respect of :

(a) Sales Tax 95501.41 36455.50

(b) Excise Duty/Service Tax/Custom 56662.49 34455.01

(c) Entry Tax 70452.33 29924.16

(d) Income Tax 16927.90 17276.08

(e) Bills Discounted 10531.46 10806.35

(f) Others 10276.46 4577.53

(g) Undeclared Dividend including Dividend Distribution Tax 2827.91 1089.71

on Cumulative Redeemable Preference Shares

(h) Claims / Dispute Bills not acknowledged 27577.83 -

(i) Water Conservation Fund 11500.00 -

2. Capital Commitment of `2900/- per share on or before the expiry of ten years from the date
of allotment i.e. 1st March, 2013. During the Year 51650 Preference
Estimated amount of contracts remaining to be executed on capital Shares have been redeemed at a premium of `2900/- per share.
account and not provided for : `51329.28 Lacs ( Previous Year
`83322.86 Lacs) (Net of Advances). e) 
10% 333400 Redeemable Cumulative Preference Shares of
`100/- each are allotted at a price of `3000/- per share during the
3. Other Commitment financial year 2012-13 on private placement basis. The Preference
a) Outstanding guarantees issued by the banks `304087.73 Lacs Shares are redeemable at a premium of `2900/- per share on
(Previous Year `371863.79 Lacs) counter guaranteed by the or before the expiry of ten years from the date of allotment
company including letter of credits issued. i.e. 25th March, 2013.

b) Commitment for partly paid equity shares of Angul Sukinda f) 10% 366667 Redeemable Cumulative Preference Shares of `100/-
Railway Limited, an associate company `Nil (Previous Year each are allotted at a price of `3000/- per share during the financial
`7400.00 Lacs) year 2011-12 on private placement basis. The Preference Shares are
redeemable at a premium of `2900/- in two equal installments at the
4. 
There is no present obligation arising from past events requiring end of 3rd and 4th year i.e. on 4th March, 2015 and 4th March, 2016
provision in accordance with the guiding principle as enunciated in respectively. However, due to non submission of preference share
Accounting Standard (AS)- 29, as it is not probable that an outflow of certificate by the shareholder, M/s Robust Transportation Pvt. Ltd.,
resources embodying economic benefit will be required. preference shares could not be redeemed. M/s Robust Transportation
Pvt. Ltd., vide their letter dated 1st March, 2015 and 1st March, 2016,
NOTE : 32
has requested to defer the redemption of the preference shares as
a) 12% 6500000 Redeemable Cumulative Preference Shares of `100/- the same has been pledged with banker as security against the loan
each are allotted at a price of `100/- per share during the financial taken by it.
year 2015-16 on private placement basis. The Preference Shares are
g) 10% 460000 Redeemable Cumulative Preference Shares of `100/-
redeemable at a premium of `100/- per share on or before the expiry
each are allotted at a price of `2500/- per share during the financial
of ten years from the date of allotment.
year 2011-12 on private/preferential placement basis. The Preference
b) 10% 133400 Redeemable Cumulative Preference Shares of `100/- Shares will be redeemed at any time within a period of ten years from
each are allotted at a price of `3000/- per share during the financial the date of allotment i.e. 29th March, 2012. During the Year 460000
year 2014-15 on private placement basis. The Preference Shares Preference Shares have been redeemed at a premium of ` 2400/- par
are redeemable at a premium of `2900/- per share on or before the share.
expiry of ten years from the date of allotment. During the Year 84001
h) 10% 1800000 Redeemable Cumulative Preference Shares of `100/-
Preference Shares have been redeemed at a premium of `2900/- per
each are allotted at a price of `2500/- per share during the financial
share.
year 2011-12 on private/preferential placement basis. The Preference
c) 10% 723400 Redeemable Cumulative Preference Shares of `100/- Shares are redeemable at a premium of `2400/- before the expiry of
each are allotted at a price of `3000/- per share during the financial ten years from the date of allotment i.e. 30th March, 2012. During
year 2013-14 on private placement basis. The Preference Shares the Year 33119 (upto Previous Year 1200000) Preference Shares have
are redeemable at a premium of `2900/- per share on or before been redeemed at a premium of `2400/- per share.
the expiry of ten years from the date of allotment. During the Year
i) 10% Redeemable Cumulative Preference Shares of `100/- each are
505200 Preference Shares have been redeemed at a premium of
allotted at a price of `3000/- per share during the financial year
`2900/- per share.
2010-11 on private placement basis. The Preference Shares are
d) 10% 1276700 Redeemable Cumulative Preference Shares of `100/- redeemable at a premium of `2900/- before the expiry of ten years
each are allotted at a price of `3000/- per share during the financial from the date of allotment i.e. 30th March, 2011 for 1500300 shares.
year 2012-13 on private placement basis against the share application During the financial Year 2013-14, 560067 Preference Shares have
money received during the financial year 2011-12 amounting to been redeemed at a premium of `2900/- per share.
`38301.00 Lacs. The Preference Shares are redeemable at a premium

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 Corporate overview Management reports financial statements

j) 10% Redeemable Cumulative Preference Shares of `100/- each are  he consolidated financial statement of Bowen Energy Pty Ltd. and its
T
allotted at a price of `3000/- per share during the financial year 2009- subsidiaries has been consolidated as certified by the management to be in
10 on private/preferential placement basis. The Preference Shares compliance with the applicable Indian Accounting Standards and relevant
are redeemable at a premium of `2900/- before the expiry of ten provisions of the Companies Act, 2013.
years from the date of allotment i.e. 29th January, 2010 and 31st
March, 2010 for 1334800 and 2333500 shares respectively. During NOTE 36
the Year 237418 (upto Previous Year 133267) Preference Shares have Auditors Remuneration Includes:
been redeemed at a premium of `2900/- per share.
(` in Lacs)
25% 800000 Non Convertible Cumulative Redeemable Preference
k) 
Particulars Current Year Previous Year
Shares of `100/- each are allotted at a price of `2500/- per share
during the financial year 2010-11 on private placement basis. The Audit Fees 100.60 116.29
preference shares are redeemable at a price that shall give aggregate
Tax Audit Fees 18.50 20.50
yield to the holders of 1% accrued on day to day basis on the face
value together with the premium of the preference shares, within Certification Fees - 15.00
48 Months from the date of allotment i.e 28th March, 2011 in such Other Services - 14.75
trenches as stipulated in the subscription agreement. Upto Previous
Year 800000 Preference Shares have been redeemed at a premium of 119.10 166.54
`2400/- per share.
NOTE 37
l) 
4% 900000 Non Convertible Cumulative Redeemable Preference  he Company hold 90.97% (Previous Year 90.97%) share in Bhushan
T
Shares of `100/- each are allotted at a price of `2500/- per share Steel (Australia) Pty Ltd. Bhushan Steel (Australia) Pty Ltd. hold 100.00
during the financial year 2010-11 on private placement basis. The % (Previous Year 100.00.%) share in Bowen Energy Limited. Bhushan
Preference Shares shall be redeemed at an amount in INR, such Steel (Australia) Pty Ltd. has invested the amount in Bowen Energy Ltd.
that the subscribers get yield of 14% per annum on the amount out of the proceeds received from its Holding Company (i.e. Bhushan Steel
outstanding within 36 Months from the date of allotment, i.e 29th Limited) which are being utilized by Bowen Energy Ltd. in exploration of
March, 2011 in such trenches as stipulated in the subscription mines.
agreement. The same has been further extended for three months i.e
upto 29th June, 2014. Upto Previous Year 900000 Preference Shares  udited financial statement of Bhushan Steel Australia Pty Ltd. and Bowen
A
have been redeemed. Energy Ltd. are not available after June13.

m) 2% 2085000 Redeemable Cumulative Preference Shares of `100/- In Notes to Accounts on the Consolidated Financial Statements
each are allotted at a price of `600/- per share during the financial of subsidiary M/s Bowen Energy Ltd.(Australia) in the Audited
year 2014-15 on private placement basis. The Preference Shares are Financial Statement for the year ended June13, following notes
redeemable at a premium of `500/- per share on or before the expiry have been given involving material items:
of ten years from the date of allotment.
The Consolidated entity has recorded a loss of $ 3,245,854 for the year
n) 2% 1400000 Redeemable Cumulative Preference Shares of `100/- ended 30 June 2013 (2012: $16,87,619) has cash outflows from operations
each are allotted at a price of `600/- per share during the financial of $1,389,919 (2012: $399,999), current liabilities of the Consolidated
year 2013-14 on private placement basis. The Preference Shares are entity exceeded current assets by $8,350,357 (2012:$ 6,197,029) and the
redeemable at a premium of `500/- per share on or before the expiry Consolidated entity is also in a net liability position of $4,423,581 (2012:$
of ten years from the date of allotment. 1,165,594).
o) 1% 1167340 Redeemable Cumulative Preference Shares of `100/-  o ensure the ongoing viability of the consolidated entity the directors
T
each are allotted at a price of `300/- per share during the financial have negotiated a $10m loan facility with Bhushan Steel (Australia) Pty
year 2014-15 on private placement basis. The Preference Shares are Limited, a wholly owned subsidiary of Bhushan Steel Limited, the parent
redeemable at a premium of `200/- per share on or before the expiry entity of Bowen Energy Limited. At the reporting date the consolidated
of ten years from the date of allotment. entity had drawn down $6.9m of this loan. The Directors believe that
taking into consideration the minimum required expenditure to maintain
NOTE 33
title to existing exploration licences, current levels of administrative
The Company made investment of `1000.00 Lacs in Equity Shares of Angul
expenditure, the available loan facility, assuming funding is made
Sukinda Railway Limited for the construction of Rail line between Talcher
Road in Angul District to Bhaguapal in Jajpur along with other parties. As available under the terms and conditions of the loan, will be sufficient to
the project did not made any headway, the Company refused to pay the ensure that the Consolidated entity is able to settle its liabilities as they
call money of `1540.00 Lacs plus interest. Angul Sukinda Railway Limited fall due in the ordinary course of business. Bhushan Steel (Australia)
issued final call notice for payment of unpaid call money failing which the Pty Limited has also agreed not to recall payment of the loan payable
shares were liable to be forfeited. The Company disputed the call money by the consolidated entity until such time the consolidated entity has
which in its opinion was premature, illegal and arbitrary and advised Angul surplus cash. On this basis the financial report has been prepared on
Sukinda Railway Limited to withdraw said notice. Provision for diminution the going concern basis.
in the value of Investment was made in last year for `1000.00 Lacs. As he loss, including impairment loss, shown in Balance Sheet of the
T
the shares have been forfeited, the investment has been written off during Bowen Energy Ltd., Australia as mentioned in the above note, consist
the year. mainly expenditure incurred by the Company on exploration activity of
NOTE 34 its various mines which are still not operational, however, in accordance
 he Company has during the year commissioned Lime Klin 600 TPD, Track
T with generally accepted accounting principles in India, the same has been
Hooper and other ancillary plants. treated as Capital work in progress.

NOTE 35 In the opinion of the companys management, the note given by the
 n-audited financial statements of Bhushan Energy Limited (Associate),
U auditors of Bowen Energy Ltd., Australia is not applicable as loss, other than
Andal East Coal Company Pvt. Ltd. (Joint Venture), Bowen Energy Ltd., tenements written off, has been capitalized to CWIP in the consolidated
Bhushan Steel (Australia) Pty Ltd. (Subsidiaries) have been considered for Balance Sheet of Bhushan Steel Ltd as per generally accepted accounting
consolidation. principles in India.

89
BHUSHAN STEEL LIMITED Annual Report 2015-16

NOTE-38
As Per Accounting Standard (AS)-18, the disclosure of transaction with related parties as defined in the Accounting Standard are given
below:
(I) List of related parties where control exists and related parties with whom transactions have taken place and relationships:
a) Associates
Angul Sukinda Railway Ltd. (Shares forfeited, no more associate)
Bhushan Energy Ltd.
Bhushan Capital & Credit Services Pvt. Ltd.
Jawahar Credit & Holdings Pvt. Ltd.
b) Key Management Personnel
Shri Neeraj Singal (Vice Chairman & Managing Director)
Shri Nittin Johari (Whole time Director)
Shri P.K. Aggarwal (Whole time Director)
Shri Rahul Sengupta (Whole time Director)
c) Relatives of Key Management Personnel
Shri B.B. Singal (Non-Executive Chairman & Father of Vice Chairman & Managing Director)
Smt. Ritu Singal (Wife of Vice Chairman & Managing Director)
d) Enterprises over which Key Management Personnel are able to exercise significant influence
Bhushan Aviation Ltd.
Bhushan Infrastructure Pvt. Ltd.
e) Enterprise over which relatives of Key Management Personnel are able to exercise significant influence
Bhushan Power & Steel Limited
(II) Transactions Carried out with related parties referred in (I) above, in ordinary course of business:
(` in Lacs)
PARTICULARS Associates Key Relatives of KMP Enterprises over Grand Total
Management which KMP &
Personnel their relatives
(KMP) have significant
influence
Remuneration and Current Year - 476.47 95.31 - 571.78
Perks
Previous Year - 410.02 68.60 - 478.62
Directors Sitting Current Year - - 8.82 - 8.82
Fees
Previous Year - - 8.60 - 8.60
Allotment of Current Year - - - - -
Shares and Share
Previous Year - 5542.02 1329.00 2133.00 9004.02
Application Money
Pending Allotment
Redemption of Current Year - 11022.03 6654.00 2088.00 19764.03
Preference Share
Previous Year - - - - -
Capital
Purchase of Current Year 62172.38 - - 1853.00 64025.38
Goods/ Services
Previous Year 36115.80 - - 1512.00 37627.80
Sales of Goods/ Current Year 7031.28 - - 3918.62 10949.90
Services
Previous Year 17400.09 - - - 17400.09
Security Deposit Current Year - - - - -
Paid
Previous Year 9000.00 - - - 9000.00
Provision for Current Year - - - - -
diminution of
Previous Year 1000.00 - - - 1000.00
Investment
Investment written Current Year 1000.00 - - - 1000.00
off
Previous Year - - - - -
Outstanding
Trade Receivable Current Year - - - 35.08 35.08
Previous Year - - - - -
Other Receivable Current Year - - - 24.55 24.55
Previous Year - - - - -

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 Corporate overview Management reports financial statements

(` in Lacs)
PARTICULARS Associates Key Relatives of KMP Enterprises over Grand Total
Management which KMP &
Personnel their relatives
(KMP) have significant
influence
Payable Current Year 511.69 22.23 1.98 99.07 634.97
Previous Year 425.25 17.03 - 174.55 616.83
Security Deposit Current Year 9000.00 - - - 9000.00
Receivable
Previous Year 9000.00 - - - 9000.00
Provision for Current Year - - - - -
diminution of
Previous Year 1000.00 - - - 1000.00
Investment

Disclosure in Respect of Material Related Party Transaction during the year :

1. Remuneration & Perks include payment to Shri Neeraj Singal `146.07 Lacs (Pre. Year `144.66 Lacs), Shri P.K.Aggarwal `95.92 Lacs (Pre.Year `75.56
Lacs), Shri Nittin Johari `138.78 Lacs (Pre. Year `114.40 Lacs), Shri Rahul Sengupta `95.70 Lacs (Pre. Year `75.40 Lacs), and Smt. Ritu Singal `95.31
Lacs (Pre. Year `68.60 Lacs).
2. Directors sitting fees is paid to Shri B.B.Singal `8.82 Lacs (Pre. Year `8.60 Lacs )
3. Preference Share Capital received from Shri Brij Bhushan Singal `Nil (Pre. Year `1329.00 Lacs) and Shri Neeraj Singal `Nil (Pre. Year `5542.02 Lacs)
and Bhushan Infrastructure Pvt. Ltd. `Nil (Pre. Year `2133.00 Lacs).
4. Redemption of Preference Share Capital includes Shri Neeraj Singal `11022.03 Lacs (Pre. Year `Nil ), Shri Brij Bhushan Singal `6654.00 Lacs
(Pre. Year `Nil) and Bhushan Infrastructure Private Limited `2088.00 Lacs (Pre. Year `Nil ).
5. Purchase of Goods/Services is from Bhushan Energy Ltd. `62172.38 Lacs (Pre. Year `36115.80 Lacs ), Bhushan Aviation Ltd. `1512.00 Lacs
(Pre.Year `1512.00 Lacs ) and Bhushan Power & Steel Limited `341.00 Lacs (Pre. Year `Nil).
6. Sale of goods/services to Bhushan Energy Ltd. `7031.28 Lacs (Pre. Year `17400.09 Lacs) and Bhushan Power & Steel Ltd. `3918.62 Lacs
(Pre. Year ` Nil).
7. Security Deposit paid to Bhushan Energy Limited `Nil (Pre. Year `9000.00 Lacs ).
8. Provision for diminution of investment made in case of Angul Sukinda railway Ltd. amounting of `Nil (Pre. Year `1000.00 Lacs).
9. Investment written off in case of Angul Sukinda Railway Ltd. amounting of `1000.00 Lacs (Pre. Year ` Nil).
NOTE 39
The Company is engaged in the steel business, which in the context of Accounting Standard(AS)-17, is considered the only primary business segment
and its subsidiary Bowen Energy PTY Ltd. has acquired Coal & other Metal Mines which are under exploration and are not under operation hence only
one primary business segment has been considered.
Gross Revenue excluding export incentives of the Company as per Geographical Segment is as follows:
(` in Lacs)
Current Year Previous Year
Within India 1189039.19 1015074.50
Outside India 119832.93 153641.20
Total 1308872.12 1168715.70
Trade Receivables of the company as per Geographical Segment is as follows:

Current Year Previous Year

Within India 221254.04 226021.44
Outside India 13861.69 13807.11
Total 235115.73 239828.55
The Company has common fixed assets, other assets and liabilities for producing goods for domestic as well as overseas market.
NOTE 40
Fixed Assets include one cold rolling mill established in 1992 damaged in fire accident in the year 1998-99. The amount received from Insurance Company
for reinstatement /repair of the mill was included in other liabilities till previous year. However, during the current year company has adjusted the amount
received in the books of account.

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BHUSHAN STEEL LIMITED Annual Report 2015-16

NOTE 41
Pre-operative Expenses (In respect of project to be capitalized) :
(` in Lacs)
Current Year Previous Year
Opening Balance 66689.05 442118.26
Add: Pre-operative Expenses
1. Transferred from Statement of Profit and
Loss including Trial Run Loss/(Gain) 11012.37 32070.92
2. Depreciation - 1548.46
3. Finance Costs (During Construction and Trial Run) 22970.34 33982.71 215836.35 249455.73
100671.76 691573.99
Less : Interest earned during construction period 0.28 318.29
Provision Written Back - 0.28 - 318.29
100671.48 691255.70
Less: Capitalised
- Pre-Operative Expenses [Including Trial Run Loss/(Gain)] 7931.06 619983.05

- Depreciation - 7931.06 4583.60 624566.65

TOTAL 92740.42 66689.05

NOTE 42
Current Year Previous Year
Earning Per Share
(i) Weighted Average No. of Equity Shares
Weighted Average No. of Equity Shares 226514746 226514746

(ii) Equity Shares for Calculating Diluted Earning per

Share
Weighted Average No. of Equity Shares 226514746 226514746
(iii) P
 rofit / (Loss) After Tax including Minority (291139.19) (125676.60)
interest and share of profit of Associates (` in
Lacs)
Less: -Dividend on preference shares 1738.20 1095.71
(Including Dividend Tax)
Profit / (Loss) after Dividend on preference shares (292877.39) (126772.31)
(iv) Earning Per Share (`)
- Basic (129.30) (55.97)

- Diluted (129.30) (55.97)

NOTE 43
The Company in respect of Khopoli unit has received a sum of `538.43 Lacs (Previous Year `270.10 Lacs) as industrial promotion subsidy under Package
Scheme of Incentive-2007 announced by Government of Maharashtra for manufacturing of Large Dia Pipe, being capital receipt, has been credited to
Capital Reserve.
NOTE 44
Detail of Misc. Income
(` In Lacs)
S. No. Particulars Current Year Previous Year
1 Insurance Claim Received 27.58 49.73
2 Rent Received 11.71 10.68
3 Bad Debts / Compensation Recovered 10.50 -
4 Miscellaneous Receipts 43.78 0.63
93.57 61.04

NOTE 45
The Company has elected to account for exchange differences arising on reporting of long-term foreign currency monetary item in accordance with
Companies (Accounting Standards) Amendment Rules 2009 pertaining to Accounting Standard (AS)-11 notified by Government of India on 31st March,
2009 (As amended on 29th December, 2011) which allows foreign exchange differences on long-term monetary items arising on or after 1st April, 2011

92
 Corporate overview Management reports financial statements

to be capitalized to the extent they relate to acquisition of depreciable assets and in other cases to amortise over the balance period of the respective
monetary items.
NOTE 46
Though there was no profit for distribution of dividend, the Company during the financial year 2014-15 redeemed 4,00,000 25% Non Convertible
Cumulative Redeemable Preference Shares of `100/- each and 3,36,751 4% Non Convertible Cumulative Redeemable Preference Shares of `100/- each
issued to banks and as per terms of issue of Preference Shares paid dividend of `5.13 Lacs out of general reserve as approved by Board of Directors.
NOTE 47
Pursuant to Companies Act 2013 (the Act), becoming effective from 1 April 2014, the company has re-worked depreciation with reference to the estimated
useful lives of fixed assets prescribed under Schedule II to the Act or useful life of fixed assets as per technical evaluation done during FY 2014-15.
Subsequent to Notification GSR627 (E)dated 29th August, 2014 amending para 7 (b) under schedule II of the Company's Act 2013, Company has charged
off transitional provision amounting to `250.34 Lacs during F.Y. 2014-15, net of depreciation capitalized, to Statement of Profit and Loss.
NOTE 48
The Supreme Court of India, vide its order dated 24th September, 2014, cancelled number of coal blocks allocated to various entities which includes one
coal block allocated to the company and one of its associate company which were under development. Subsequently, the Government of India has issued
the Coal Mines (Special Provision) Act 2015, which inter-alia deal with the payment of compensation to the effected parties in regard to investment in
coal blocks.
No effect has been taken on the value of investment made by the company in the de-allocated coal blocks amounting to `56289.96 Lacs (including
Expenditure incurred of `13546.46 Lacs and Advances given `42743.50 Lacs) and `669.25 Lacs in Equity Shares/ advance for share capital in the associate
company whose coal blocks have been de-allocated. In the opinion of the management the Company/ associate company will receive back the payments/
expenditure paid/ made, including borrowing cost and other incidental expenditure, relating to de-allocated coal blocks. The Company has filed its claim
for compensation during the year with Govt. of India Ministry of coal and accordingly the investment made by the company of `56289.96 Lacs has been
reclassified to Non-current assets in the current year from Capital Work in Progress and Capital Advances.
NOTE 49
(a) In accordance with Reserve Bank of India (RBI) Circular No2014-15/354 Dt. 15th December 2014 allowing flexible structuring of existing project
loans (with option of periodic refinancing) to operational infrastructure/core industries projects the consortium of banks with SBI as the lead bank
has allowed flexible structuring of long term loans under 5/25 scheme by aligning their debt repayment obligations with cash flow generated during
their economic life.
The steering committee and joint lenders forum have approved long term viability and have structured the debt in accordance with extant guidelines
of RBI. Rupee term loans are structured into loan with twenty five years repayment tenor, subject to review after every five years. The Company has
received the approval for flexible structuring and accordingly current maturity of outstanding loan of `1850880.00 Lacs has been classified on that
basis.
(b) The Company was unable to redeem some of the secured debentures and pay interest thereon along with other irregularities in loans given by
various Banks & Institutions. The restructuring proceedings of such defaults are going on with all the lenders. In this respect, the high level Lenders
meeting was held on 16th March, 2016 at SBI Corporate Centre, Mumbai. For debt restructuring post deliberations the JLF decided to carry out a
TEV from a reputed Independent Agency to ascertain the overall viability & sustainable debt to enable the JLM to take decision on the future course
after TEV/Valuation. In view of the pending restructuring plan with Lenders, the Management is of the opinion that technically the provisions of
section 164(2)(b) of the Companies Act, 2013 are not attracted to any Director. In view of the above, the Company is not required to file Form No.
DIR9 with the Registrar of Companies.
NOTE 50
Due to the loss incurred, the Company applied to the Central Government for the approval of managerial remuneration. The approval from Central
Government has been received during the year but further clarification regarding Leave Encashment, PF and taxable car perquisite has been sought.
Hence, the payment of Leave Encashment, PF and taxable Car perquisite are subject to approval of Central Govt.
NOTE 51
The board has given in principal approval for the demerger of the plants of the company situated at Sahibabad and Khopoli to its subsidiaries on slump
sale basis through business transfer agreement based on the valuation to be carried out by approved valuer. The said transaction is subject to approval
of board and shareholders.
NOTE 52
During the current financial year the company has entered into sale and lease back transaction of Coke Oven Batteries and Oxygen equipment of 150 TPD
Plant, however, the same has been cancelled. The net amount of `22840.50 Lacs received under this transaction has been disclosed under other current
liabilities as other payables.
NOTE 53
For computing deferred tax liability, the amount of business and depreciation loss as allowable in income tax returns has been considered for recognizing
deferred tax assets. On the basis of future projections taken on record by the management after considering improved performance of the company in
last quarter, the board is confident that there is a virtual certainty that sufficient taxable income will be available in the future against which, the deferred
tax assets can be realized in the normal course of business of the company.
NOTE 54
The Company during the financial year 2014-2015 had sold assigned and transferred to the purchaser in perpetuity, all rights, titles and interest in the
equipments of Oxygen Plant, free and clear of encumbrances, on an itemized asset sale basis, for a consideration of `100012.50 Lacs including sales tax.
The said equipments are taken by the Company under operating lease for a period of ten years from 26th February, 2015.
Lease Payment made on operating lease has been recognized as an expense in the statement of Profit & Loss on straight line basis with reference to lease
term and other consideration. The terms of Operating Lease are as follows:

93
BHUSHAN STEEL LIMITED Annual Report 2015-16

 (` In Lacs)
S. No. Particulars Current Year Previous Year
(a) The total of future minimum lease payments under non-cancellable operating
leases for each of the following periods:
(i) Not later than one year 18000.00 18000.00
(ii) Later than one year and not later than five year 75941.38 72341.30
(iii) Later than five year 84407.14 105951.80
(b) The total amount of future minimum sublease payments expected to be received N.A. N.A.
under non-cancellable sublease at the balance sheet date
(c) Lease payments recognized in the statement of Profit and Loss for the period, with 12880.00 213.10
separate amounts for minimum lease payments and contingent rent.
(d) Sub-lease payments received (or receivable) recognized in the statement of Profit N.A. N.A.
and Loss for the period.
(e) A general description of the lessees significant leasing arrangements including, but
not limited to, the following:
(i) The basis on which contingent rent payments are determined N.A. N.A.
(ii) The existence and terms of renewal or purchase options and escalation clause and Refer note below (a) & (b) Refer note below (a) & (b)
(iii) Restrictions imposed by lease arrangements, such as those concerning dividends, N.A. N.A.
additional debt, and further leasing.
Notes:
(a) Upon expiry of Lease Term, the Lessee shall have the option to renew the lease term of the Equipments for subsequent periods of 5 years each
(Renewal Term). The lease rent for Renewal Term shall be as agreed between the Lessor and Lessee but shall not be higher than the last Rent paid
under this Lease Agreement. The Lessee shall intimate any revision in the rent for the Renewal Term to its lenders.
(b) Rent is based on, among others, a benchmark rate (based on the cost of financing the purchase of the Equipments by the Lessor) that has been
agreed between the Parties prior to the date of execution of this Lease Agreement. In the event the benchmark rate changes or the parties agree to
change the benchmark rate/apply some other benchmark, the Rent payable may increase or decrease accordingly.
Due to said equipments not being fully operational, the Company has paid during the year `12880.00 Lacs (Previous Year `213.10 Lacs) as lease
rent.
NOTE 55
DERIVATIVES
I The company has not entered into any derivatives instruments to hedge the foreign currency contracts. There is no derivative contract outstanding
as on the date of the Balance Sheet.
II The year end foreign currency exposure that have not been hedged by a derivative instrument or otherwise are given below :-

Current Year Previous Year

US$ equivalent INR equivalent US$ equivalent INR equivalent
(Lacs) (Lacs) (Lacs) (Lacs)
a) Amount receivable in Foreign Currency on Account of
Sale of Goods 208.97 13861.69 220.59 13807.11
Advance against goods 179.56 11910.77 203.17 12716.33
b) Amount payable in Foreign Currency on Account of
Acceptances 310.47 20594.46 343.03 21470.83
Trade Payable / Creditors for Capital Goods / Customers 588.62 39044.60 3260.58 204082.38
Credit Balances
Loans /Interest Payable 14884.87 987356.05 14872.03 930852.27
NOTE 56
As per Accounting Standard (AS) -15 Employee Benefits, the disclosure of employee benefits as defined in the Accounting Standards are given below:-
A. Defined Contribution Plans:
Contribution to defined contribution plan, recognized as expenses / pre-operative expenses is as under:
(` in Lacs)
Current Year Previous Year
a) Employer contribution to Provident Fund /Other Funds 573.82 415.39
b) Employer contribution to State Plans
i) Employee State Insurance 46.79 65.37
ii) Maharashtra Labour Welfare Fund 0.10 0.11

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 Corporate overview Management reports financial statements

B. Defined Benefit Plans:

a) Leave Encashment/ Compensated Absence.
b) Contribution to Gratuity Funds - Employee's Gratuity Fund.
In accordance with Accounting Standard (AS)-15 (Revised 2005), the actuarial valuation carried out in respect of the aforesaid defined benefit plans
is based on the following assumptions:
(` in Lacs)
Leave Encashment / Employee Gratuity Fund
Compensated Absence
Current Year Previous Year Current Year Previous Year
i) Actuarial Assumptions
Discount Rate (per annum) 8% 8% 8% 8%
Rate of increase in compensation levels 5% 5% 5% 5%
Rate of return on plan assets - - 8% 8%
Expected Average remaining working lives of employees (years) 24 25 24 25
ii) Change in the obligation during the year ended 31st March,
2016
Present value of obligation as at 31st March, 2015 1578.36 1349.50 2950.09 2380.04
Impact of Transition provision of (AS) -15 - - - -
Interest cost 126.27 114.71 236.01 202.31
Past Service cost - - - -
Current service cost 291.24 310.90 451.46 412.61
Curtailment cost - - - -
Settlement cost - - - -
Benefits Paid (165.27) (168.98) (227.76) (160.53)
Actuarial (gain)/ loss on Obligations (164.31) (27.77) 61.01 115.66
Present value of obligation as at 31st March, 2016 1666.29 1578.36 3470.81 2950.09
iii) Change in fair value of plan Assets
Fair value of Plan Assets as at 31st March, 2015 - - 1680.36 1706.19
Expected return on Plan Assets - - 134.42 136.50
Contributions - - - -
Benefits Paid - - (227.76) (160.53)
Actuarial gain/ (loss) on Obligations - - 29.84 (1.80)
Fair value of Plan Assets as at 31st March, 2016 - - 1616.86 1680.36
iv) Reconciliation of Present value of Defined Benefit obligation
and Fair value of Plan Assets
Present value of obligation as at 31st March, 2016 1666.29 1578.36 3470.81 2950.09
Fair value of Plan Assets as at 31st March, 2016 - - 1616.86 1680.36
Funded Status (1666.29) (1578.36) (1853.95) (1269.73)
Present value of un-funded obligation as at 31st March, 2016 - - - -
Un-funded Actuarial (gains)/ losses - - - -
Un-funded Net Asset/ (Liability) recognized in Balance Sheet (1666.29) (1578.36) (1853.95) (1269.73)
v) Expenses recognized/Pre-Operative Expenses in Statement
of Profit and Loss
Current service cost 291.24 310.90 451.46 412.61
Past Service cost - - - -
Interest cost 126.27 114.71 236.01 202.31
Expected return on Plan Assets - - (134.42) (136.50)
Curtailment cost - - - -
Settlement cost - - - -
Net Actuarial (gain)/ loss recognized during the year (164.31) (27.77) 31.16 117.46
Total Expense recognized in Statement of Profit and Loss / Pre 253.20 397.84 584.21 595.88
operative expenses
The estimate of future salary increase, considered in actuarial valuation, takes into account inflation, seniority, promotion and other relevant factors. The
above details do not include expenditure/payables of joint venture amounting to `Nil / `Nil (Previous Year `0.11 Lacs / `1.51 Lacs) provided on accrual
basis.

95
BHUSHAN STEEL LIMITED Annual Report 2015-16

NOTE 57
(` in Lacs)
Value of Import on C.I.F. Basis Current Year Previous Year
-Raw Material 411265.06 349257.10
-Capital Goods 16036.61 17171.19
-Stores / Spare Parts 10485.16 9321.82
NOTE 58
Expenditure in Foreign Currency

- Travelling 282.70 199.65

- Sales Commission 264.85 252.94
- Machinery Repair & Maintenance 32.00 334.44
- Technical Consultancy 924.42 1549.05
- Interest & Finance Charges 33676.98 36555.45
- Capital Machinery/Indirect Expenses 1164.12 -
- Legal Expenses 20.47 23.23
- Rates & Taxes - 14.07
- Subscription 3.48 4.31
- Insurance - 7.44
NOTE 59
Earnings in Foreign Exchange
- FOB Value of Export 119832.93 153641.20

NOTE 60
Additional Information, as required under Schedule III to the Companies Act, 2013, of enterprises consolidated as Subsidiary /
Associates / Joint Ventures.
S. Name of the Enterprise Net Assets i.e. total assets minus Share in profit or (loss)
No. total liabilities
As % of Amount (` In lacs) As % of Amount (` In lacs)
consolidated net consolidated profit
assets or (loss)
Parent
Bhushan Steel Limited 101.43 472482.46 97.53 (283936.71)
Subsidiaries
Indian
1 Bhushan Steel (South) Limited (0.01) (29.79) 0.00 (0.52)
2 Bhushan Steel (Orissa) Limited 0.00 (0.67) 0.00 (0.27)
3 Bhushan Steel Madhya Bharat Limited 0.00 (0.67) 0.00 (0.27)
Foreign
1 Bhushan Steel (Australia) Pty Limited (0.12) (549.26) (0.06) 174.16
2 Bowen Energy Pty Limited 0.17 806.56 0.05 (138.61)
3 Bowen Coal Pty Limited 0.00 14.53 0.00 0.00
4 Bowen Consolidated Pty Limited 0.00 0.00 0.00 0.00
Minority Interests in all subsidiaries 0.71 3300.60 0.00 (5.06)
Associates (Investment as per the
equity method)
Indian
1 Bhushan Energy Limited (1.47) (6873.67) 2.48 (7234.25)
2 Bhushan Capital & Credit Services Private (0.00) (2.31) 0.00 (0.26)
Limited
3 Jawahar Credit & Holdings Private Limited (0.00) (2.05) 0.00 (0.23)
Joint Venture (as per proportionate
consolidation/ Investment as per
equity method)
Indian
1 Andal East Coal Company Private Limited (0.00) (28.98) 0.00 (2.23)

96
 NOTE 61
SALIENT FEATURES OF FINANCIAL STATEMENTS OF SUBSIDIARY / ASSOCIATES / JOINT VENTURES AS PER COMPANIES ACT, 2013
PART"A": SUBSIDIARIES
(` in Lacs)
S. Name of Country Reporting Share Reserves Total Total Investments Turnover Profit Provision Profit Proposed % of
No, Subsidiary Currency Capital & Assets Liabilities included in before for after Dividend Shareholding
Company Surplus excluding Total Assets Taxation Taxation Taxation
Shareholder's
Funds
1 Bhushan India INR 5.00 (0.67) 4.71 0.38 - - (0.27) - (0.27) - 100.00%
Steel
(Orissa) Ltd.
2 Bhushan India INR 105.00 (29.79) 77.59 2.38 - - (0.52) - (0.52) - 100.00%
Steel (South)
Ltd.
3 Bhushan India INR 5.00 (0.67) 4.71 0.38 - - (0.27) - (0.27) - 100.00%
Steel Madhya
Bharat Ltd.
4 Bhushan Australia AUD 26946.53 (683.33) 26791.17 527.97 7544.37 - 191.45 - 191.45 - 90.97%
Steel
(Australia)
PTY Ltd.#
5 Bowen Australia AUD 8900.04 *292.71 11296.01 2103.26 2.58 - (157.75) - (157.75) - 100.00%
Energy PTY
Ltd.**#
6 Bowen Australia AUD 0.00 *14.53 14.53 - - - - - - - 100.00%
Coal PTY
Ltd.***#
7 Bowen Australia AUD 0.01 - 0.01 - - - - - - - 100.00%
Corporate overview

Consolidated
PTY
Ltd.***#

* Includes Foreign Currency Translation Reserve .

** Subsidiary of Bhushan Steel (Australia) Pty Limited.
*** Subsidiaries of Bowen Energy Pty Limited.
# Financial Statement is based on Unaudited Results.
Management reports

Names of Subsidiaries which are yet to commence operations-

S. No. Name of Subsidiary Companies
1 Bhushan Steel (Orissa) Ltd. 2 Bhushan Steel (South) Ltd.
3 Bhushan Steel Madhya Bharat Ltd. 4 Bhushan Steel (Australia) PTY Ltd.
5 Bowen Energy PTY Ltd. 6 Bowen Coal PTY Ltd.
7 Bowen Consolidated PTY Ltd.

financial statements

97
 PART"B" : ASSOCIATES AND JOINT VENTURES

98
Statement pusuant to Section 129 (3) of the Companies Act, 2013 related to Associate Companies and Joint Ventures

S. Name of Associates / Joint Venture Latest audited Shares of Associates/Joint Ventures held by the Networth Profit/(Loss) for the year
No. Balance Sheet company on the year end attributable to
Date Shareholding
No. Amount of Extent of Considered in Not Considered
as per latest
Investment in Holding % Consolidation in Consolidation
audited
Associates/Joint (` In Lacs)
Balance Sheet
Venture (` In
(` In lacs)
Lacs)
Associates
1 Bhushan Energy Limited 31.03.2015 65000000 35000.00 47.71% 20409.92 (7234.25) -
2 Bhushan Capital & Credit Services Private 31.03.2016 8643742 940.31 42.58% 3578.15 (0.26) -
Limited
3 Jawahar Credit & Holdings Private Limited 31.03.2016 8643742 940.31 39.65% 3943.19 (0.23) -
Joint Venture
1 Andal East Coal Company Private Limited 31.03.2015 330000 145.50 33.89% 111.09 (2.23) -
BHUSHAN STEEL LIMITED Annual Report 2015-16

Names of Associates / Joint Venture which are yet to commence operations-

S. No. Name of Joint Venture
1 Andal East Coal Company Private Limited

Sd/- Sd/-
B. B. SINGAL NEERAJ SINGAL
NON-EXECUTIVE CHAIRMAN VICE CHAIRMAN &
MANAGING DIRECTOR
Sd/- Sd/- Sd/-
PANKAJ KUMAR NITTIN JOHARI O. P. DAVRA
Place: New Delhi HEAD WHOLE TIME DIRECTOR (FINANCE) COMPANY
Dated: 30th May, 2016 (ACCOUNTS) & CHIEF FINANCIAL OFFICER SECRETARY
 Corporate overview Management reports financial statements

NOTE 62
Value of Imported / Indigenous Raw Material and Store / Spares Consumed

Current Year Previous Year

Value %age Value %age
(` in lacs) (` In lacs)
Raw Material:
Imported 348937.04 53.10 209886.04 36.76
Indigenous 308230.25 46.90 361054.89 63.24
657167.29 100.00 570940.93 100.00
Stores/Spare Parts:
Imported 10399.26 25.79 7370.69 23.32
Indigenous 29926.15 74.21 24231.48 76.68
40325.41 100.00 31602.17 100.00

NOTE 63
Remittance in foreign currency on account of Dividend
The Company has paid dividend in respect of shares held by Non-Residents on repatriation basis. This inter-alia includes portfolio investment and direct
investment, where the amount is also credited to Non-Resident External Account (NRE A/c). The total amount remittable in this respect is given herein below:

Current Year Previous Year

USD INR USD INR
(a) Number of Non-Resident Shareholders - 396
(b) Number of Equity Shares held by them - 4581360
(c) (i) Amount of dividend paid (Gross) - - 130 2290680
(a) Amount of dividend paid through transfer in NRE a/c - 2282680
(b) Amount of Dividend paid through Foreign Currency - - 130 8000
(ii) Tax deducted at source - - - -
(iii) Year to which dividend relates N.A. 2013-14

NOTE 64
Figures pertaining to the subsidiaries and joint venture have been reclassified where necessary to bring them in line with the companys financial
statements.
NOTE 65
Previous Year Figures have been rearranged/regrouped wherever considered necessary.

For MEHRA GOEL & CO. For MEHROTRA & MEHROTRA

Chartered Accountants Chartered Accountants
(Registration No.: 000517N) (Registration No.000226C)
Sd/- Sd/- Sd/- Sd/-
R. K. MEHRA M.P. MEHROTRA B. B. SINGAL NEERAJ SINGAL
PARTNER PARTNER NON-EXECUTIVE CHAIRMAN VICE CHAIRMAN &
M. NO.:006102 M.NO.:005699 MANAGING DIRECTOR
Sd/- Sd/- Sd/-
PANKAJ KUMAR NITTIN JOHARI O. P. DAVRA
Place: New Delhi HEAD WHOLE TIME DIRECTOR (FINANCE) COMPANY
Dated: 30th May, 2016 (ACCOUNTS) & CHIEF FINANCIAL OFFICER SECRETARY

99
Notes
BHUSHAN STEEL LIMITED
The Future of Steel

Annual Report 2015-16