BOARD OF DIRECTORS

Shri V K Thakral, IAS

Shri P. Madhusudan

Shri Lokesh Chandra, IAS

AS & FA, MoS. & Director

Chairman-cum-Managing Director

Jt. Secy (Steel), MoS. & Director

Shri T K Chand

Shri P.C.Mohapatra

Dr.G.B.S.Prasad

Shri D.N.Rao

Shri T.V.S.Krishna Kumar

Director (Commercial)

Director (Projects)

Director (Personnel)

Director (Operations)

Director (Finance)

Shri V S Jain

Shri Ashhok Kumar Jain

Prof. Sushil

Prof. S.K. Garg

FCA, FCMA
Independent Director

FCA
Independent Director

Independent Director

Independent Director

Shri P Mohan Rao

FCMA, FCS, LLB
Company Secretary
(As on the date of 32nd Annual General Meeting held on 29th September, 2014)

BANKERS

BOARD OF DIRECTORS
Chairman-cum-Managing Director
Shri P.Madhusudan (w.e.f 01/01/2014)
Shri A.P.Choudhary (Upto 31/12/2013)
FUNCTIONAL DIRECTORS
Commercial
Shri T K Chand
Projects
Shri P.C.Mohapatra (w.e.f 01/11/2013)
Shri N.S.Rao (Upto 31/10/2013)
Personnel
Dr.G.B.S.Prasad (w.e.f 01/05/2014)
Shri Y.R.Reddy (Upto 30/04/2014)
Operations
Shri D.N.Rao (w.e.f 01/08/2014)
Shri Umesh Chandra (Upto 31/07/2014)

State Bank of India

Bank of Baroda
Canara Bank
State Bank of Hyderabad
Allahabad Bank
IDBI Bank Ltd
UCO Bank
Union Bank of India
Axis Bank
IndusInd Bank
HDFC Bank
Deutsche Bank
Bank of Tokyo - Mitsubishi(UFJ)

ICICI Bank
Citi Bank
Standard Chartered Bank
Andhra Bank
HSBC Ltd
Vijaya Bank
JP Morgan Chase Bank
Kotak Mahindra Bank
DBS Bank
SIDBI
Royal Bank of Scotland
EXIM Bank
Bank of India

AUDITORS
M/s Tej Raj & Pal &
M/s. Rao & Kumar
Chartered Accountants,
Visakhapatnam.

Finance
Shri T.V.S. Krishna Kumar (w.e.f. 25/08/2014)
Shri P. Madhusudan (Upto 31/12/2013)

COST AUDITOR
M/s. Narasimha
Murthy & Co
Cost Accountants
Hyderabad

CONTENTS
1. Chairmans Address

GOVERNMENT DIRECTORS
Shri Lokesh Chandra
Shri V K Thakral
INDEPENDENT DIRECTORS
Shri V S Jain
Shri Ashhok Kumar Jain
Professor Sushil
Professor Suresh Kumar Garg
Dr. Sheela Bhide, I.A.S. (Retd.) (Upto 24/09/2014)
Lt.Gen. Arvind Mahajan (Retd) (Upto 24/09/2014)
Shri Ajay Kumar Goyal (Upto 23/09/2014)
Shri Rajib Sekhar Sahoo (Upto 22/09/2014)

2. A Glance of Financial Results

3. Financial Highlights
4. Directors Report

REGISTERED OFFICE
Administrative Building
Visakhapatnam Steel Plant
Visakhapatnam 530 031
Andhra Pradesh
Website: www.vizagsteel.com
2

7-10
11
12-32

- Management Discussion & Analysis Report

33-40

- Report on Corporate Governance

41-50

- CEO & CFO Certificate

51

- Certificate on Compliance of Guidelines on

Corporate Governance

52

- Secretarial Compliance Report

53-55

- Auditors Report

56-61

- Comments of C & AG

62-63

- Statement pursuant to Section 212 of the

Companies Act 1956

COMPANY SECRETARY & COMPLIANCE OFFICER

Shri P Mohan Rao

3-6

64

- Measures taken for Conservation of Energy

& Foreign exchange Earnings & Outgoings
- Power & Fuel Consumption (Form-A)

65-66
67

- Technology Absorption (Form - B)

68-70

5. Audited Annual Accounts (Stand alone)

71-99

6. AGM Notice & Supplementary Notice

7. Vision, Mission & Objectives

100-115
116

Chairmans Address
Dear Shareholders,
I take great pleasure in welcoming you all for the 32nd Annual General Meeting of your Company.
I take this opportunity to thank you all for making it convenient to attend the meeting and express my
gratitude for your continuous support & patronage which gives confidence and motivation to strive
for improved performance. The Directors Report, the Audited Statement of Accounts for the year
2013-14 and the Notice to the Shareholders have already been circulated and with your permission,
I take them as read.
I am glad to inform that the production from almost all the units of Stage 1 Expansion has
commenced and will reach a significant level of capacity build-up by end of this financial year
2014-15, including start of production from Stage-2 Units. The Company is further moving ahead in
capacity building through Modernisation & Upgradation to achieve 7.3 Mtpa progressively within the
next 18-24 months. Several strategic initiatives have been taken with which the company is all set to
become a multi-unit company, with new units coming up in UP & Rajasthan. The Company fully
3

recognises the unstinted support from a spectrum of agencies, dedicated RINL collective and help
from the Steel Ministry & other Govt. Departments.
Steel Scenario in 2013-14
India achieved a decent growth in 2013-14, the second best amongst the top ten steel producing
countries in the world and has emerged as a net exporter of steel, with the Crude steel production
recording a growth of 4% over the previous year. India is likely to maintain the momentum of exports
in 2014-15 also and your company, which exported 1 lakh tonnes of steel last fiscal, aims to double
that in the current fiscal.
Steel contributes to nearly 2% of the Gross Domestic Product (GDP) and employs over 500,000
people. The total market value of the Indian steel sector is expected to touch US$ 95.3 billion by 2016.
The infrastructure sector is the countrys largest steel consumer, attracting investments from several
global players and this has made the steel industry a high priority sector now. Also, steel demand
from other sectors like automobiles, consumer durables and construction is on the rise making the
industry vibrant.
The liberalisation of the industrial policy and government initiatives have given a definite impetus
to the steel industry. Foreign Direct Investment (FDI) has been another positive step, which will
ultimately lead to the countrys economic growth.
The Government has therefore drawn a Master Plan to reach 300 mtpa capacity by 2025 which
will need an investment of US$ 210 billion over the next decade.
Government Initiatives
The initiative of the Government to allow 100 percent FDI through the automatic route in the
Indian steel sector has significantly reduced the duty payable on finished steel products and has
streamlined the associated approval process.
In order to provide thrust on Research and Development (R&D), the Ministry of Steel is
encouraging R&D activities both in public and private steel sectors, by providing financial assistance
from Steel Development Fund (SDF) and Plan Scheme of the Central Government. Under the SDF
Scheme, 82 R&D projects have been approved with total project cost of Rs 677 Crore
(US$ 111.92 Million) wherein SDF assistance is Rs 370 Crore (US$ 61.17 million). Under the Plan
Scheme, eight projects have been approved with a total cost of Rs 123.27 Crore (US$ 20.38 Million)
wherein Government assistance is Rs 87.28 Crore (US$ 14.43 Million).
To encourage beneficiation and pelletisation of iron ore fines in the country, basic customs duty
on the plant & equipment of pellet plants/ beneficiation plants has been reduced from 7.5 percent to
2.5 percent. Import of critical raw materials for steel industry such as coking coal, non-coking coal
and scrap are subjected to zero or very low levels of custom duty.
Road Ahead
The future of the Indian steel industry is bright. The government plans to increase infrastructure
spending from the current 5 percent GDP to 10 percent by 2017 and the country is committed to
investing US$ 1 trillion in infrastructure during the 12th Five-Year plan. Taking 15 percent as steel
component in the total investment, then it alone can generate additional demand worth US$ 75 billion
of steel in the next few years or US$ 15 billion worth of additional demand a year and in terms of
quantity, an additional demand of 19 MT per annum.
With urban population increasing, there is a greater demand for steel to build public-transport

infrastructure. Emerging economies will also continue to be a major driver of demand as these
necessitate a huge amount of steel for urbanisation and industrialisation.
Your Companys performance
In the year 2013-14, your company has been able to achieve a Profit After Tax (PAT) of
Rs. 366 Crs, with Turnover of Rs.13,489 Crs. The State of Andhra Pradesh, where RINL has the
highest market share, got severely affected by the acute power crisis forcing several industries to
throttle production. Competition in the Bars & Rods market increased due to higher production in
this category from other major competitors without commensurate increase in consumption. Input
costs particularly basic raw materials like iron ore and Ferro alloys along with foreign exchange
fluctuation has also impacted the bottom-line. The initiatives taken by the company such as
optimisation of coal blend, maximisation of captive power generation, prudent fund management,
improvement in techno-economic parameters etc. could partially offset the impact of the above factors.
I am happy to inform that a Letter of Intent has been received for the first ever Iron Ore lease to
the Company in Bhilwara District of Rajasthan over an area of about 946 Hectares. The Government
of Rajasthan has also recommended allotment of another adjacent block of Iron Ore over an area of
4,500 Hectares which is under consideration of Ministry of Mines, Govt. of India. Your Company will
be setting up the state of art mining facilities at Bhilwara after all clearances are obtained.
The Companys strategic initiative for laying a Slurry Pipeline from Nagarnar to Visakhapatnam
and Setting up of Pellet Plant at Visakhapatnam in a Joint Venture with NMDC is also taking shape.
RINL for the first time joined hands with Railways for setting up of a Forged Wheel Plant adjacent
to the Rail Coach Factory in Raebareli, Uttar Pradesh. This plant would be the largest in the country
and would substitute import of Forged wheels by Railways. The orders are likely to be placed shortly
and the Unit is scheduled for completion by 2018.
Sustainability Initiatives:
The sustainable economic development of any country requires creating sustainable livelihood
besides industrial development on large scale. Keeping its responsibility towards the ecosystem,
your company has further strengthened its sustainability policy which focuses on Society, Energy and
Environment and the Sustainability Policy stands to fulfil the same.
Corporate Social Responsibility (CSR)
CSR activities play a pivotal role with focus on Inclusive sustainable growth. In the year
2013-14, the emphasis was on society care and provision of welfare measures to the needy. A separate
Section is provided in Directors report regarding CSR activities.
Corporate Governance
Your companys commitment to transparency in Corporate Governance is reflected in its
establishing appropriate systems & procedures for every process. A separate Report on Corporate
Governance along with Certificate on Compliances of CG guidelines and Secretarial Compliance form
part of the Directors Report.
Environment Management
As a manufacturing company, RINL is conscious of its role in maintaining clean environment for
future generation. In recognition of its achievements on this front, the company received Green
Rating Award from the Centre for Science and Environment (CSE). Your company has been conducting
Mass Plantation Melas to bring awareness and create responsibility. A separate section on the same
forms part of the Directors Report.
5

Dividend for the year 2013-14

The Board of Directors have recommended a dividend of 10% of PAT for the year 13-14 for
Equity Shareholders and 7% on Preference Shareholding for approval in the AGM.
Contribution to the Exchequer
Over the last 29 years, the cumulative accrual to the Government Exchequer in the form of
revenue comprising of excise duty, income tax, value added tax, entry tax, octroi and other State
levies was nearly Rs. 26,448 Crs. I am sure with the increase in production capacity and turnover, the
contribution to Govt exchequer would improve further.
Looking ahead
India is increasingly becoming an important part of the international steel market, based on
various positive factors including strong demand for steel arising from strong economic growth, low
per capita steel consumption and abundant iron ore reserves.
The expansion to 6.3 mtpa will strengthen the position of the company as the market leader in
Bars & Structural market. The long product consumption in the country is poised for accelerated
growth with large scale infrastructural investment planned by the Government which should augur
well for your company. To tap the potential of exports to the neighbouring countries, RINL is opening
its International Marketing Centre in Colombo, Sri Lanka. The company is also actively pursuing
partnership through Steel Processing Units for the end users to ensure ready/tailor made markets.
Acknowledgement
I acknowledge that the achievements have been possible only due to the relentless and dedicated
efforts of RINL collective. On behalf of the Shareholders and Management of the Company, I thank all
the Stakeholders, particularly the Ministry of Steel and other Ministries of GOI, the Government of
AP, the Suppliers (Domestic & Overseas), Customers, Ancillary Units, Bankers, the Peoples
Representatives, the District Administration and various other agencies for the confidence and trust
bestowed upon the Company and the opportunity given for its continued growth and expansion for
achieving various milestones.
Thank You,
Jai Hind,
Dtd.29th September 2014,
Visakhapatnam.

(P Madhusudan)
Chairman

14021

13738

437

558

374

2209

3039

3135

3071

2761

2973

3436

4081

5058

6169

8181

8491

9151

10433

10411

10635

11517

14462

94-95

95-96

96-97

97-98

98-99

99-00

00-01

01-02

02-03

03-04

04-05

05-06

06-07

07-08

08-09

09-10

10-11

11-12

12-13 13553*
*
*
13-14 13489*

Year

1751

Turnover

93-94

Other Revenue

1185

Gross Income

92-93

14899

12043

11392

11334

11337

9812

8938

8468

6378

5226

4234

3616

3127

2958

3168

3214

3154

2259

1907

1332

7026

8099

8472

7188

5535

5896

4280

3889

3585

3020

2050

1806

1602

1444

1394

1220

1405

1385

1311

1059

875

680

402

* Includes sale of trial run production of

526

758

924

904

661

447

286

209

168

153

180

155

197

97

78

116

50

156

148

Raw Materials
consumed

795

Stock (Accretion) /
Decretion

22

1751

1469

1467

1273

1400

1157

1031

741

572

490

481

406

375

408

272

255

210

174

155

128

103

77

54

271

187

345

266

277

240

488

362

448

1006

476

455

475

445

432

111

439

422

430

415

340

340

449

338

360

191

165

78

88

32

49

31

11

49

123

291

351

382

361

198

430

407

366

347

198

437

3784

3684

3268

2701

2439

2842

2854

2525

2346

1997

1748

1635

1504

1364

1303

1151

1211

1163

1107

855

655

758

509

549

526

1110

982

1248

2027

2995

2222

1890

2254

1547

521

(75)

(291)

(562)

(457)

(177)

(246)

(204)

(364)

(573)

(568)

(987)

(478)

89.83 Crs in 2012-13 and 125.29 Crs in 2013-14

19

(304)

45

(532)

415

(917)

(343)

24

66

(310)

26

281

62

(103)

(95)

318

(118)

(115)

(50)

(200)

160

(152)

(70)

Employee Benefits

772

Depreciation &
Amortisation

91-92

Interest &
Wealth Tax
191

Stores, R&M, Power

& Other Expenses

192

Profit / (Loss)
before tax

197

366

353

751

658

797

1336

1943

1363

1252

2008

1547

521

(75)

(291)

(562)

(457)

(177)

(246)

(204)

(364)

(573)

(568)

(987)

(478)

Profit / (Loss)
after tax

29

5740

6347

7727

7827

7827

7827

7827

7827

7827

7827

7827

7827

7827

7827

7827

6494

6494

6494

6494

6494

6494

3706

3506

3506

Capital

(27)

6401

6131

5932

5402

5058

4593

3654

1711

346

(906)

(2914)

(4461)

(4982)

(4907)

(4616)

(4054)

(3597)

(3420)

(3174)

(2970)

(2605)

(2033)

(1464)

(478)

Reserves & Surplus

175

4943

4900

2575

1137

1233

1008

441

917

458

531

37

1186

1989

2293

2343

2243

2205

3735

3831

3735

3474

3495

5476

3924

Loans / Buyers
Credit

281

13616

12588

10394

9795

9474

8972

8901

8876

8832

8763

8710

8731

8703

8643

8635

8615

8592

8548

8392

8289

7326

6157

5031

3720

Fixed Assets Gross

Block

36

9083

8799

8607

8265

8009

7750

7516

7085

6754

6322

5338

4903

4468

4012

3580

3148

3037

2819

2177

1747

1365

1026

704

248

Total Depreciation

245

Cr

4533

3790

1787

1530

1465

1222

1385

1790

2078

2441

3372

3828

4235

4630

5055

5467

5555

5729

6215

6542

5961

5131

4327

3472

Fixed Assets
Net Block

90-91

A Glanc
e of Financial Results sinc
e inc
eption
Glance
since
inception
No.

18371

18072

18079

17829

17830

17225

16416

16401

16574

16613

16755

16894

17026

17131

17254

17400

17354

17478

17642

17369

17483

17454

16656

14433

Employees as on
31st March

Sale of By Products & Others

719 Crs (5.23%)
Interest Earned
180 Crs (1.31%)

Other revenue
138 Crs (1%)

Internal Consumption
56 Crs (0.41%)
Sale of Iron & Steel Products
12645 Crs (92.04%)

Stock Accretion
19 Crs (0.14%)
Employees Benefits
1751 Crs (12.75%)
Stores & Spares consumed
557 Crs (4.05%)
Power and Fuel

671 Crs (4.88%)

R&M,Freight,Other expenses,
Interest etc 1491 Crs (10.85%)
Excise Duty

1403 Crs (10.21%)

Depreciation

271 Crs (1.97%)

Provision for Taxation

Profit after Tax

183 Crs (1.33%)

366 Crs (2.66%)

Raw Materials consumed

7026 Crs (51.14%)

10

Cr

Gross Block & Net Block

FINANCIAL HIGHLIGHTS
2013-14
A

OPERATING RESULTS ( Cr)

Turnover
Gross Income
Gross Expenditure
Gross Profit (PBIT)
Profit before Tax
Net Profit After Tax

13489
13738
12851
887
549
366

13553
14021
13135
886
526
353

5740
6401
2722
12141
13616
9083
4533
3863

6347
6131
3583
12477
12588
8799
3790
3829

6.6
2.7
7.3
3.0
32.6
13.5
15.5
28.6

6.5
2.6
7.1
2.8
24.7
9.8
14.0
28.2

0.8
0.4
5.0

1.0
0.6
3.8

YEAR END FINANCIAL POSITION ( Crs)

Share Capital
Reserves and Surplus
Capital Employed
Net Worth
Gross Block
Cumulative Depreciation
Net Block
Inventory

2012-13

PROFITABILITY AND OTHER RATIOS

(i) Percentage of
Gross Profit to Sales
Net Profit to Sales
Gross Profit to Net Worth
Net Profit to Net Worth
Gross Profit to Capital Employed
Net Profit to Capital Employed
Gross Profit to Share Capital
Inventory to Sales

(ii) Ratio of
Current Assets to Current Liabilities
Quick Assets to Current Liabilities
Sales to Capital Employed

11

DIRECTORS REPORT
Dear Members,
On behalf of the Board of Directors of the
Company, I take great pleasure in presenting the
32 nd Annual Report of the Company for the
financial year ended 31st March 2014, together with
the Audited Statements of Accounts, the Auditors
Report and Comments on the Accounts by the
Comptroller and Auditor General of India.

Your company paid an Interim Dividend of

55 Crs and 3 Crs on Preference Shares & Equity
Shares respectively to Govt. of India (GoI) and
Board has recommended a Final Dividend of 1
Cr and 33.64 Crs on Preference Shares & Equity
Shares respectively. The total dividend pay-out is
25.28 % (Previous FY 35.86 %) and including
dividend tax it is 29.58% (Previous FY 41.77%) of
PAT.

Business Performance

The 6.3 Mtpa Expansion Project of RINL is

RINL excelled on all fronts in the year nearing completion with the commissioning of all
2013-14, in the year 2013-14 securing Excellent major units of Stage-1 except Lime Kiln Plant.
rating as per MOU with Government of India.
Production has already commenced from major
A Turnover of 13,489 Crs., was achieved units including Steel Melt Shop-2 and Wire Rod
during the year despite a sluggish market. Your Mill-2. All attempts are being made to quickly
Company earned Profit After Tax (PAT) of stabilize the units and ramp up the production.
366 Crs for the FY 2013-14 against 353 Crs of All efforts are being put for commissioning of
previous year. Lower growth in consumption of Special Bar Mill (SBM) & Special Structural Mill
steel lead to lower sales realisation which in turn (STM) under Stage-2 during this fiscal.
offset the advantage of lower raw material prices Production:
during the year.
Production of Crude Steel, Finished Steel
The Comparative position of major financial and Saleable Steel registered a growth of 4%, 3%
parameters is given as under :
and 4% over CPLY respectively for the year
( in Crs) 2013-14. Production exceeded 100% capacity for
Particulars
2013-14 2012-13 2011-12 the 13 th consecutive year, achieving capacity
utilization of 112%, 117% & 112% in Crude Steel,
Turnover (including Trial run
production sale)
13489
13553
14462
Finished Steel and Saleable Steel production from
Turnover (excluding Trial
existing units. The production of value added steel
run production sale)
13364
13463
14462
products stood at 23.57 lakhs during the period
Less: Excise Duty
1403
1455
1319
registered a growth of 6% over CPLY which is about
Net Sales
11961
12009
13143
78% of saleable steel.
Profit before interest,
Depreciation and Tax (EBIDTA)
Less: Interest & Finance Charges
Less: Depreciation
Profit Before Tax (PBT)
Less: Provision for Tax
Profit After Tax (PAT)
Net worth
EBIDTA to Net Sales (%)
Return (PAT) on
Net Worth (%)
EBIDTA to Average capital
employed (%)
Earnings per share
( 10 each) in

12

1159
338
271
549
183
366
12141
9.69

1073
359
187
526
174
353
12477
8.93

1645
191
344
1110
359
751
13659
12.52

3.02

2.83

5.50

36.76

15.59

0.62

0.48

1.26

The overall captive power generation

increased by 4% over the previous year, with
generation of 26.8 MW through waste heat
recovery.
Techno Economic Parameters improved over
previous year, salient among them being viz:
Reduction in Energy consumption by 2%
Reduction in Water consumption by 2%
Reduction in Specific Refractory consumption by 4%
Growth of 2% in Labour productivity
Growth of 5% in Blast Furnace Productivity
Growth of 3% in Converter Productivity

Technical Parameters

Major Production Parameters

Unit :
Items

Rated
Actual
capacity 2013-14

Hot Metal - Existing

- Expansion

3400
2500

- Total
Liquid
Steel

- Existing

3000

- Expansion

2800

- Total

2177

CPLY

Fulfillment on
DPR(%)

2780

82

Growth
over
CPLY(%)
-26

1593

1034

64

3769

3814

73

(-)1

3335

3250

111

56

**

3391

3250

**

Crude

- Existing

2820

3151

3071

112

Steel

- Expansion

2730

50

**

3202

3071

**

1957

1924

105

- Total
Billets

1857

Item

000t
SMS-1

CC Bloom yield

Unit
%

2013-14 Previous best

94.503

94.500 11-12

LMMM Billet Mill

Rolling Rate

t/W.Hr 329.2

Billet mill Heat

Mcal/t

conspn.

blm.rld. 421

Bar mill Power

kWh/t

conspn.

blt.rld.

Bar mill Heat

Mcal/t

conspn.

blt.rld.

MMSM Power
consumption

329.0

12-13

425

12-13

69.47

70.56

12-13

19.6

20.5

12-13

80.11

12-13

kWh/t
blm.rld. 74.32

Bar products

710

874

867

123

Other Highlights:

Wire Rods - Existing

850

995

973

117

600

**

998

973

**

After achieving a throughput of 37.74 Million

tonnes of Hot Metal on Carbon lining in a
campaign life of 23 years, BF-1 was
successfully blown out on 20.10.13 for
Category-1 Capital Repairs.

- Expansion
- Total
MMSM products

850

939

878

110

Finished - Existing

2410

2808

2717

117

Steel

2050

- Expansion
- Total

Saleable - Existing
Steel

2656

- Expansion
- Total

Value added production

**

2810

2717

**

2976

2900

112

40

**

3016

2900

**

2357

2228

**

a)

BF-1 was under Category-1 Capital repairs from

20th Oct13.

b)

The newly commissioned SMS-2 and WRM-2 are

under stabilization

Best Production & Technical Parameters

Production:
Item
CO&CCP Avg. pushings

Unit

2013-14 Previous best

Blast Furnace-3 achieved its rated capacity

(7150 t /day) by producing 7155 t on 20.12.13.
TG-5 achieved its rated capacity (67.5 MW) on
30.12.13.
In SMS-1, sequence casting of 124 heats in
CCM-2 is the best since inception
Total dispatch by rail (1073 rakes) is the best
for any year.
1,43,885 t of Coke Breeze dispatch is the best
for any year.
3,91,000 t of Metallurgical Waste consumption
in Sinter Plant during the year is the best since
inception.

Nos/day

309

305

12-13

Gross Coke

000 t

2654

2637

12-13

BF Coke

000 t

2209

2197

12-13

Recovery of 479 MG water from Appikonda &

Balacheruvu Waste Water Treatment Plants.

CRMP

Gross Flux

000 t

330

318

12-13

Cost Reduction Measures

TPP

COB-4 Power
generation

MW

11.08

10.75

12-13

The Companys Commitment towards

containing cost continued during the year
2013-14 with focus on following measures:
Improvement in Gross Coke yield.
Improvement in yield of Ammonia Sulphate.
Recycling of Tar sludge and Benzol Muck.
Optimization of coal blend.
13

 Utilization of Metallurgical Waste to replace

Iron ore fines.
Utilization of lime Briquette in SMS.
Recycling of Maintenance Scrap.
Conservation of Water.
Conservation of Energy.
Improvement in Hot metal ladle life & steel
ladle life.
Reduction in consumption of lubricants.
Substitution of sized iron ore with sinter in SMS.
Generation of power from waste heat recovery.
Marketing
During 2013-14, growth was registered in
sales of saleable steel, by-products and exports.
The performance in respect of major parameters
related to Marketing is as follows:
Parameter
Saleable Steel
sales volume

Unit

2012-13 2013-14

Lakh tons

28.02

Gr. (%)

30.35

Sales Turnover

cr.

13,550

13,489

Export Value

cr.

598

747

25

Marketing Distribution Network

RINL has pan India presence to cater the
material requirement in the domestic market. During
the year, focus was on expanding the marketing
distribution network to take care of additional
quantities available from expansion units. The
marketing distribution network comprises of
Branches, Stockyards, Consignments Sales Agents
(CSAs), Marketing Contact Officers (MCOs), Retailers,
District Level Dealers (DLDs) & Rural Dealers (RDs).
The total marketing outlets of RINL increased from
496 in 2011-12 to 767 in 2012-13 and further to 845 in
2013-14.

The sales turnover has been lower primarily due to

decline in realizations in sluggish market condition.

Performance Highlights
Parameter

Achievement

Sales of high end Value

Added Steel

9% growth at
4.25 Lakh Tons

Sales of Wire Rods

Continued Leadership in
Sale of Wire Rods

Exports of Saleable Steel

95,400 t against 18,200 t in

previous year

Customer Satisfaction
Index (CSI) Score

83.25 against 80.8 of

previous year

Inventory of Saleable Steel

The year end inventory of saleable steel at
84 thousand tonnes works out to an inventory level
of 10 days against the norm of 21 days. The Stock
to sales ratio of 0.05, is the lowest amongst Main
Producers.

14

Customer Satisfaction
There has been continuous focus on
improving customer satisfaction by taking
initiatives on improving performance on various
parameters like quality, availability, pre and post
sales service, commercial terms, technical
specifications, etc.
As per the latest Customer Satisfaction
Survey conducted by Business and Industrial
Research Division (BIRD) of IMRB International,

RINL obtained a Customer Satisfaction Index (CSI)

The requirement of coking coal of around
of 83.25 against 80.8 achieved in the previous 4 Million tonnes is met through Long Term
Customer Satisfaction Survey. The CSI obtained Agreement (LTA) with 6 overseas suppliers from
is above the industry average.
different geographical locations, Australia, USA
and New Zealand. In order to obviate uncertainties
Marketing Initiatives
in weather conditions, other force majeure
New Product Development : RINL has obtained situations and to reduce the cost of procurement
certification from Indian Boiler Regulation and Det by increasing competition, continuous efforts are
Norske Veritas (DNV) during the year, for supply made to increase the supplier base. In this
of its Special Steels. Power Grid Corporation of direction, 2 new grades were found satisfactory
India Ltd (PGCIL) accorded approval for supply of in Pilot Oven testing and 2 grades are found
Cast Blooms from expansion i.e. 150 and 200 mm satisfactory in Industrial trial shipments also.
for manufacturing TLT grade structurals. SAE
1015 IBR and SAE 1019 IBR grades were Transport & Shipping
developed for manufacturing of Seamless Tubes
Savings of 36.11 Crores and 10.70 Crores
for Boilers.
were due to chartering of Capesize vessels against
Thrust on Exports : The Company focussed on Panamax vessels and Panamax in place of
exports to leverage its port based location. A Team Handymax vessels respectively.
of officials from Marketing visited Srilanka,
Ethiopia, Dubai and Kenya for exploring new
markets. During the year, Iron & Steel products
were exported to Indonesia, Taiwan, South Korea,
Nepal, Thailand, Ethiopia, Kenya and Tanzania.
All necessary formalities have been
completed for opening of IMO at Colombo, Sri
Lanka. The operation of Office is expected to
commence shortly.
Costal Shipping : Possibility of despatch of
products through Costal Shipping is being
explored to ease the congestion in rail network.
Material Management
Purchase
Purchase Department has taken various
initiatives in the direction of input cost reduction,
reduction in ocean freight, securitization and
diversification of critical raw materials like coking
coal, iron ore, boiler coal etc., and in containing
the inventory of coking coal well within the
prescribed norms. Transparency in procurement
activity is promoted and maintained by
implementation of Integrity pact. Quality
management systems are adopted through
compliance of ISO standards. 5S standards are
adopted for work place management.

Stores:
Warehousing based on scientific and modern
techniques is a continuous activity. The scale of
operations in Central Stores Deptt. (CSD) is huge
with 22,194 nos. receipts and 1,23,850 issues in
2013-14. Service level of Stock Control is 99.10%
and the average time of inspection of Day Books
has come down to 2.8 days from 3.8 days last year.
CSD Bagged Par Excellence Award at
National level at Kolkata and Achieved Gold Level
Award, Best 5S Coordinator Award from QCFI.
Work Place Management Practices - 5S have
been implemented and CSD is complying with the
ISO standards for Quality, Environment and
Occupational Health and Safety.

15

Vendor Development

- Implementation of Channel / Dealer Finance

Programme, with facility limits of 680 Crs,
through MoUs with Banks provided finance
to Dealers, for promoting the sales reducing
strain on working capital.
- Improved Electronic payment mode at 99%
e-payments.

Savings on Borrowings during the year 2013-14

Description

Weighted average Savings

Rate of Interest

( Crs)

borrowings (FCB)

8.25

47.32

Commercial Paper (CP)

8.59

11.15

Fin. Institutions

9.81

2.60

Total for all loans

8.54

61.07

Foreign currency

Borrowings from Banks/

Wt.Avg interest rate on

Cash Credit**

10.21

**Weighted Average Cash Credit interest rate is

calculated based on the secured Cash Credit
limits sanctioned with periodical interest rates

Finance:

Major achievement for Capex

Obtained Sanction of 2500 Crs of Corporate

LoanII from State Bank of India for a period of
Prudent fund management resulted in savings four and half years for CAPEX purposes with
in various fronts as given below:
flexible debit and credit option to enable to raise
- Lower average working capital interest rate funds through NCDs when the interest rates are
low.
at 8.54% , resulting in savings of 15 Crs.

Treasury Management Initiatives

As the Fixed deposit interest rates were

ruling low in the range of 9% to 9.75%, the
maturities were utilised to pay off Capex loans to
the extent of 965 Crs, to reduce the cost of funds,
- Lower weighted average interest rates of which would yield in Capex interest savings of
Commercial Papers of 8.59% compared to approximately 6.75 Crs in the next financial year
SBI Cash Credit interest rates ranges 2014-15.
- Lower average cost of 9.10% on domestic INR
loans against SBI Cash Credit rates of 9.95%
to 10.40% p.a. during the year.

between 9.95% to 10.40%, resulting in

savings of 11.15 Crores.
- Also Treasury Management initiatives
resulted in higher interest yield on
investments at 10.22% compared to domestic
INR loans raised at an average cost of 9.10%.
16

Direct Taxes
Due to proper presentation of the case before
the Dispute Resolution Panel by quoting the
relevant provisions of Austrian Income Tax Act and
continuous follow-up with the Assessing Officer
an amount of 12.43 Crs of Tax refund claims was

received from Income Tax Department which were Converter-2 in Steel Melt Shop-2
pending for a long period of more than 15 years.
commissioned on 30th Oct13.
An amount of 353.14 Crores was claimed TG-5 - Unit commissioned and synchronized
with Grid on 6th Nov13.
in the Return of Income of the company for AY
2013-14 by availing various tax incentives like Caster-3 in Steel Melt Shop-2 commissioned
on 28th Nov 13.
additional depreciation, special depreciation on
pollution control equipments, weighted deduction 1st Line of WRM-2 commissioned on 31st Jan14.
on R&D expenditures etc.
LF-2 in Steel Melt Shop-2 commissioned on
Indirect Taxes:
10th Feb14.
Proposed to the Central Excise department Converter-1 in Steel Melt Shop-2
commissioned on 28th Mar14.
an agreeable procedure regarding availing of
Cenvat Credit of service tax component involved 2 nd Line of WRM-2 commissioned on
in railway freight based on copy of Railway Receipt
30th Mar14.
(RR), which resulted in release of funds parked Upgradation & Modernisation to 7.3 Mtpa
provisionally with the department to the tune of
The Blowing-in of BF-1 was done on
13 to 15 Crs quarterly.
30.7.2014 after completion of category-1 capital
Railway Claims
repair.
Realisation of an amount of 8.60 Crs from
Orders for the following major packages
East Coast Railways on account of settlement of were finalized, towards Modernisation and
122 Claims during the calendar year 2013 which Upgradation .
were pending for more than 6 years.
LD Converters Revamping in SMS-1 in Mar13
Projects
Capital Repair of BF-2 in Aug13
6.3 Mtpa Expansion
3rd Converter in Mar13
The 6.3 Mtpa Expansion Project of RINL is
4th Caster in Feb14
nearing completion with the commissioning of all
major units of Stage-1 except Lime Kiln Plant which Sinter Machines - 1 & 2 Revamping in Mar14
is likely to be commissioned by Sept/Oct 14.
Forged Wheel Plant
Production commenced from major units viz.
The Largest forged Wheel Plant in the
Raw Material Handling Plant (RMHP), Sinter country is being set up at Rae Bareli, UP with an
Plant-3, Blast Furnace-3(BF-3), Turbo Blower-4, investment of about 1000 Cr. This is a specialized
Steel Melt Shop-2(SMS-2), Wire Rod Mill-2 (WRM-2) unit catering to the need of special grade wheels,
etc. All attempts are being made to quickly (1,00,000 wheels per annum), for High Speed
stabilize the units and ramp up the production.
Trains of Indian Railways. The Foundation stone
The Second stage of 6.3 Mtpa Expansion was laid on 08/10/2013. Tenders are under
includes installation of Special Bar Mill (SBM) and finalization and evaluation of technical bids is
Structural Mill (STM). All out efforts are being put expected shortly.
for commissioning of SBM & STM Mills during Axle Plant
2014-15.
The Second largest Axle Plant in India is
Major Units Commissioned during 2013-14
planned to be set up at New Jalpaiguri, West
Bengal about 400 Cr for production of 50,000
Boiler-6 commissioned on 20th June13.
Axles per annum for Indian Railways. Draft land
Sinter Plant-3 commissioned on 4th July13.
lease and off-take agreements with Railways are
New Oxygen PRS-3 in Steel Melt Shop-2 under finalization.
commissioned on 30th Oct13.
17

Capex Cash Flow

shortly, after which further course of action will

Against the Capex Plan of RINL 1500 Cr an be chalked out.
amount of 1512 Cr was spent in the financial year Excellence through Project Utkarsh
2013-14. The cumulative expenditure towards
Revival of Chairmans Trophy for Excellence as
6.3 Mtpa Expansion Project was 10793 Cr upto an instrument for internalizing concepts of
Mar14 and cum. Exp. under 12th plan period is Excellence in day-to-day work. Departments are
2799 Cr.
evaluated based on various aspects such as overall
performance, leadership, planning and execution,
RINL has been continuously pursuing with rigour, resource management, process
mineral rich States for allocation of captive iron management and customer and employee
ore Mines. In this direction, LOI has been received orientation.
for one Iron Ore Mine, from Govt. of Rajasthan, Initiatives based on feedback from Chairmans
Trophy for Excellence, PMs Trophy and CII-EXIM
over an area of 945 Hectares.
The Govt. of Rajasthan has also Bank Award:
Raw Material Security

recommended for another block of over an area Introduction of Quality Improvement Projects
for Production departments to drive major
of 4866.20 Hectares and forwarded to Ministry of
process improvements in an annual time frame
Mines, Govt. of India for approval.
to address areas of immediate concern in
Corporate Strategic Management (CSM)
various departments. A total of 32 QIPs have
Several strategic initiatives have been taken
been identified and are in progress.
for overall growth of the organization salient
Introduction of initiative of Improvement
among them being :
Gemba so as to provide thrust on continuous
Iron ore Slurry Pipeline from Nagarnar and
improvements through involvement of senior
Pellet Plant at Vizag.
management teams. As per the scheme, team
of senior officers visits all shop floors on
Under RINLs strategic initiative with NMDC,
monthly basis to have a first-hand feedback on
to lay 13 Mtpa slurry pipeline from Nagarnar,
improvement efforts and also help
Chhattisgarh to Visakhapatnam and to set up a
improvement team with their insights.
6 Mtpa Pellet plant at Visakhapatnam, route
survey has been completed and Techno-Economic Knowledge Management
Feasibility Report (TEFR) has been prepared.
Thrust on Community of Practices (Expert
Financial Appraisal of the TEFR is nearing
forums) to ensure that experts in various domains
completion.
are engaged in facilitating problem solving
Transmission Line Tower project
through interactive sharing of knowledge.
The company also looks forward to setting Currently around 20 Expert forums are active.
up a 1,20,000 tonnes per annum Transmission
Trans organizational learning platform
Line Tower project at Visakhapatnam through joint through Knowledge Exchange Workshops has
venture with POWERGRID. With completion of been created. Knowledge Exchange Workshops
TEFR and Financial Appraisal, the project is well were conducted to gather critical knowledge for
set to enter into execution stage, subject to RINL prior to start of Category-1 Capital Repair
clearance from respective Boards.
of BF-1 and commissioning of PCI in BF-3 where
process experts from various SAIL plants, JSW,
Revision of Corporate Plan
JSPL, Tata Steel had participated and contributed
Vision 2027 is being developed through valuable inputs.
M/s PwC to explore various options for growth and
Five patent applications were filed during
sustainability and the final report is expected
2013-14.
18

Sustainable Development

minimization of transition bloom production

during casting of different grades of steel.

Sustainable Development has always been

an integral part of the Companys strategy since MoUs signed with McMaster University,
the project conceptualization stage in 1980s. This
Ontario, Canada to collaborate and strengthen
is accentuated by the fact that RINL was the first
research and development cooperation
Indian steel plant to adopt green technologies in
between the respective institutions and
its manufacturing processes and to adopt Energy
partners and with IC-IMPACTS, Canada in the
Management Standard BSEN 16001 and
areas of Infrastructure and water.
subsequently ISO 50001.
MoU was signed between RINL and National
Sustainability Planning exercise is carried
Institute of Ocean Technology, Chennai to take
out annually to achieve desirable alignment across
up a new collaborative research project on CO2
the organization with multilayer action-plans and
sequestration of BOF Slag.
organization objectives. This further results in Investment of 136.00 Crores was approved by
development of 5 year Roll-on-Plan with emphasis
RINL Board for development of CRGO Steels in
on initiatives for the current year.
collaboration with Tata Steel, NML and MoS.
The Sustainability Report 2013 was Eleven projects have been taken up in 2012-13
published in February 2014 in line with GRI
out of which two projects were successfully
Guidelines 3.1 and compiled in accordance with
completed. Four new MoUs were signed in
GRI Application Level-A.
2013-14 in addition to the continuance of
Research and Development
projects of 2012-13
Research and Development at RINL has R&D Expenditure:
shown growth, focusing on present and future
Year
Actual Expenditure
requirements of the plant, with thrust in the areas
( Crores)
of process improvement, environment protection,
31.13
waste management, cost reduction, new product 2012-13
development, and new technology development. 2013-14
50.27

Expenditure as %
of Turnover
0.23
0.37

In addition to the studies and projects taken

up internally, RINL-R&D has joined hands with
premier educational institutes / research
laboratories and research organizations for joint
research initiatives. These projects are at various
stages of completion.

An amount of 50.27 Cr was spent in the

year - a growth of 61% over CPLY. Thrust on R&D
is given with a clear road map through activities
aimed at process, product and technology
development with the number of Engineers /
Scientists to increase up to 100 and R&D outlay
to increase up to 100 Cr by 2016-17 per annum
Highlights
Preparation of R&D road map with the help of gradually.
an external expert for setting up of a state of Safety
the art R&D center with laboratory and pilot
RINL is the first among the Indian Steel
facilities.
plants to be certified for OHSAS: 18001 Standard
for Health and Safety Management Practices
(Occupational Health and Safety Assessment
Specification-OHSAS). Continuous efforts on the
implementation of safety standards, monitoring
of risk control and other proactive measures have
Development of Corrosion resistance paints.
resulted in reduction / elimination of potential
Prediction of transition bloom volume and hazards.
Development of value added ceramic products,
in association with Central Glass & Ceramic
Research Institute, utilizing solid wastes (LD
Slag, BF Slag, Fly Ash) generated at RINL.

19

Safety is a prime concern for RINL and

accomplishes its objectives with a motto We
produce steel with safety & zeal. Safety
Engineering Department under Executive Director
(Works)I/c regularly scrutinizes, supervises and
ensures implementation of safe working practices
in all departments of the company. Several
measures are being taken up to achieve zero
accidents and to meet the safety requirements of
the company.

Safety promotion
Large scale of visual communication has
been taken up and Safety slogans Boards and
Safety hoardings with eye-catching safety
messages at different important locations are
installed inside the plant.
Achievements:
Frequency Rate of accidents brought down to
0.29 from 0.75 of previous year

Safety Training and Awareness Campaigns

Incident Rate has been brought down to 0.70

from 1.80 of previous year
6500 No. of regular employees were covered
in regular safety training programmes and Severity Rate has been brought down to 171.66
12500 No. of contract workers were given safety
from 2099.20 of previous year.
induction training and refresher training
No. of Reportable accidents brought down to
programmes. In addition to the General Safety &
22 from 59 of previous year
Accident Prevention programmes, the following
proactive measures were undertaken to inculcate Capital Repairs have been done in the plant
without any reportable incident.
safety culture:
348 fire mock drills were organized in several More than 65 OH&S Objectives and
Programmes were taken up by different
departments to make emergency action plan
departments
more perfect.
Two plant level mock drills were conducted at Zero Fatal Accident achieved in works area
during the period Jan,13 to Jan,14
SMS-2 converter shop and CO&CCP Benzol
plant which were witnessed by Joint Chief Ispat Suraksha Puraskar 2013 (Integrated
Inspector of Factories, Visakhapatnam, and
Steel Plant) for achieving Nil Fatal Accident
Govt. of Andhra Pradesh.
during 2011 & 2012 at Rolling Mills, Steel
Melting Shops, Continuous Casting shops
Special emphasis was given on Behavior Based
Safety Management (BBSM) and training on the Environment Management
same is being imparted to all employees to
Environment Management at Vizag Steel
bring attitudinal change towards safety and to
commenced at the design-board-stage when its
inculcate improved safety culture.
planners and designers planned for providing
Auditor training course on OHSAS-18001:2007 extensive environmental facilities both during the
Standard and Legal Awareness were Stage-I and Stage-II of the plant.
conducted by M/s. BVCI.
During Stage-I, a massive investment of
Various Road Safety awareness programmes about 468 Crore has been made to provide a wide
were organized for employees / contract array of pollution control equipment to contain
workers/ Bus drivers / School / college dust emissions and for treatment of waste water
students with external faculty from A.P Road and effluents.
Transport Authorities and VSGH doctors.
A number of new features aimed at
Seminars and exhibitions on safety appliances, environmental improvement in the areas of Air
Lectures by eminent personalities were Pollution, Water Systems, Energy efficiency and
organized regularly to bring awareness among Waste Management are integrated in the
the employees on safe practices and the type Expansion units by investing an amount of
of appliances available for use.
1238 Crore.
20

In addition to the above, large-scale

3,91,000 tonnes of metallurgical waste
Afforestation has been done and as on date about consumption in Sinter Plant during the year. This
50.10 lakh trees, have been planted in an area of is the best ever since inception.
2720 Ha.
Waste water Treatment
A number of clean technologies based on
Recovery of 479 MG water by treating in
utilisation of waste heat, waste gas, pressure Appikonda & Balacheruvu Waste Water Treatment
energy, solid wastes and sludge have been Plants and the Ultra Filtration Unit.
adopted in RINL.
2 (Two) sets of New Ammonia columns were
Environmental Compliance
commissioned in series for stabilizing the input
During the year 2013-14, VSP complied with load on MBC. This resulted in:all environment related statutory requirements Bringing down the Ammonical Nitrogen below
and hence no show cause notices have been
the norm of 50 mg/l.
issued to VSP either by APPCB or CPCB
Bringing down the COD (Chemical Oxygen
Environmental Management System (EMS)
Demand) below the norm of 250mg/l.
Environmental Management System ISO Environment Projects
14001 is implemented throughout the plant
covering 47 departments. To ensure that Doghouse was installed in SMS-2 as part of
Expansion and it was commissioned during the
Continual Improvement is propagated through
year 2013.
EMS, a number of Environmental Management
Programmes (EMPs) are taken up every year. Waste Heat Recovery system (NEDO project) to
About 75 nos of EMPs were taken up by different
generate power by recovering waste heat from
departments during the year 2013-14.
Sinter coolers of Machine 1 & 2 is made ready
for synchronization in Mar14.
Waste Management:
LD Slag consumption in Sinter Plant is Replacement of Electrostatic Precipitator of
Burden Handling System and Cast House
increased to 24.0 Kg / tonne of charge sinter
Exhaust Gas system of Blast Furnace - 1, were
against the norm of 16.0 Kg/ tonne of charge
taken up to reduce the stack emissions from
sinter.
115mg/Nm3 to 50mg/Nm3. Both the projects
are under progress and are scheduled to be
completed in 2014-15.
Providing Dry fly Ash handling, storage and
delivery system for boilers-2, 3, 4 & 5 is taken
up. Project is scheduled to be completed by
Dec14.
Providing dog houses in convertor 1 to 3 is
under implementation. Installation of the dog
houses will prevent roof top emissions from
convertor shop.
More than 1 lakh tonnes (1.1) of LD slag
consumed in Sinter plant for the year 2013-14, the Rain water harvesting schemes, to conserve
best utilization in the last 10 years
3.3MGD of water, are taken up and are at an
(after 2003-04).
advanced stage of implementation.
13.74 lakhs tonnes of BF Slag was generated New Initiatives
and 15.59 lakhs tonnes was utilized, achieving
An online reporting system called
utilization of 114.77%.
ENVISION has been developed to report various
21

environmental aspects like real time emissions applications took place during the year which
from on-line stack monitors installed at all twenty includes:
(20) major chimneys and four (4) continuous R & D Portal which was launched to serve as
Ambient Air Quality Monitoring stations. Real time
an information tool within RINL regarding the
weather data being broadcasted through intranet
initiatives, facilities, research output details and
of VSP.
all other activities of R&D.
Green Visakha Program
VIGIL, the on-line application for Vigilance
VSP is participating in the ambitious Green
Department was launched. The objective of the
Visakha- Plantation Program, where it is targeted
system is to monitor vigilance complaints in a
to plant 40 lakh trees in Visakhapatnam in 5 years,
systematic and transparent way for better
@ 8 lakh trees per year. The program is initiated
handling, archival, retrieval and reporting.
by the Parliamentary Committee on Environment, Portal for Cost Monitoring Group Department
Forests, Science and Technology. VSP has already
was also launched during the year.
planted 25000 avenue plantation and 75000 block
SWASTH for Mines, the computerized online
plantation under Green Visakha Programme.
Medical and Healthcare Management System
Information Technology
for employees working in the Mines at
RINL leverages Information Technology as
Madharam & Jaggayyapeta.
the vital enabler in improving the customer- Web site of Arunodaya Special School was
satisfaction, organizational efficiency, productivity,
inaugurated.
decision-making, transparency and cost Retired Employee Information System was also
effectiveness.
launched for the use of retired employees of
To match with International Software
RINL. Online Payment System for retired and
Development Standards, RINL chose CMMI
separated employees using Payment Gateway
Level 3 certification, the first of its kind in Indian
was also deployed. This facility will facilitate to
Manufacturing Industry. The certificate is issued
pay Mediclaim Insurance enrolment amount
by CMMI Institute, Carnegie Mellon University,
online.
USA and recertified in the month of Nov13.
Awards
Mobile Version of corporate website
The projects ROMANS (Integrated Rings,
(www.vizagsteel.com) is in place. All the esteemed
Chocks
and Roll Management System) and
stakeholders including employees, vendors,
customers and career seekers can access the KUSHAL (Data Center Consolidation thru Server
website from their mobile devices conveniently. Virtualization & VDI) were selected among the
Mobile Appstore for mobile applications was also top 5 at the national level in the Annual Convention
of Computer Society of India.
developed in-house.
Enterprise Document Management System
was deployed for online approval of ISO
documents. DOP online, first of its kind for online
search of Delegation of Powers and Enterprise
Maintenance, a unique portal with Dashboard, 360
degree view of equipment, Forum, etc. were
deployed. Enterprise Resource Planning (ERP) is
in pipeline.

Human Resources
Manpower
The manpower strength of the company
stood at 18,371 as on 31st March, 2014 (against
18,072 as on 31st March, 2013). Out of this total
manpower, 3026 (16.47%) were Scheduled Castes
(SC) and 1323 (7.2%) were Scheduled Tribes (ST).

During the year, out of the total recruitment

of 646 employees made by the company, 104
Development of several portal / web (16.10%) belonged to SC and 24 (3.71%) to ST. Out

Web Applications

22

of the total of 494 vacancies filled through On grant of Annual Performance Reward
promotions, 95 (19.23%) were SC and 74 (14.98%)
(Bonus) for the year 2013-14 for 18,270/- on
were ST.
1st October, 2013.
Group-wise manpower as on 31st March, 2014
Group Total

Gen

OBC

SC

ST Women Men Ex-Ser DPs

6294 3973

804

1062

455

378

5916

439

18

6278 4747

92

1095

344

56

6222

1563

25

3526 1821

814

512

379

69

3457

149

1878

61

2273 1568

203

357

145

45

2228

52

1852

27

548 17823 211

5732

131

Total 18371 12109 1913 3026 1323

PHY

Group A - Executives (JO & above)

Group B, C, D - Non Executives
The Persons with Disabilities (Equal
Opportunities, Protection of Rights and Full
Participation) Act, 1995
After the Act came into force on 7th February,
1996, RINL has employed 94 persons with various
disabilities (including 7 persons selected on
merit).
The following actions have been taken up at
RINL-Visakhapatnam Steel Plant for the
convenience of the differently-abled persons at
different offices at main administrative building /
corporate office of RINL-VSP.

On extension of Mobile Communication

facilities to all employees from S-9 Grade &
above.
Welfare
RINL fulfils all the statutory welfare
measures and beyond that it implements various
schemes for the benefit of its employees like
providing vehicle advances and interest subsidy
on housing loans; Long Service Awards;
motivating employees through Jawaharlal Nehru
Awards; motivating their children through Dr BR
Ambedkar Merit Recognition Scheme, Dr
Sarvepalli Radhakrishnan Merit Cash Awards and
Col. CK Nayudu Sports Cash Awards; conducting
Socio-cultural Programs at RINL schools and
township through Community Welfare Centers;
fitting farewell to retired employees etc. To meet
the social security requirements, schemes like
Employees
Family
Benefit
Scheme,
Superannuation Benefit Scheme and Group
Mediclaim Insurance Scheme are in place for the
superannuated employees.

The Company has a well laid out township

Ukkunagaram, with all modern amenities like
Auditory Signal in both the lifts of the building water supply, underground sewerage, schooling,
recreation facilities, parks, shopping complexes
Provision of a wheel-chair at the Reception
etc. for its employees, the housing satisfaction
Centre located at the entrance of the Main
works out to about 55%.
Administrative Building
RINLs philosophy towards educational
Industrial Relations
facilities is not only to benefit the children of
Industrial Relations by and large were employees but also to extend educational facilities
peaceful.
to the wards of the people dwelling in and around
Issues pertaining to workers collective are the plant and also to act as a catalyst in promoting
discussed at various forums including quality. The Promotion of Free Education
participative fora with Recognised Union and other scheme was introduced in the year 2007 as a CSR
Unions and the following Memorandum of initiative at Visakha Vimala Vidyalaya
Settlement (MOS) / Record note of discussions (Ukkunagaram and BC Road) for promoting free
were entered into with Steel Plant Employees education for the poor families. 1366 students
were provided free education under the scheme
Union (Recognised):
in the year 2013-14. Support is also given to
On change of designations of Khalasis on Arunodaya Special School for differently abled
6th February, 2014
children.
Providing Ramp Way

23

Welfare of SCs/STs

Women Empowerment

A Death Fund Scheme for employees

belonging to SC/ST categories was introduced in
January 2009, wherein 50/- is being deducted
from the salary of the members of the association
in the event of death of any member and the
amount so collected would be given to the
dependent of the deceased member. 107 families
have been benefited under the scheme so far and
18 families during the financial year 2013-14. On
an average each family has received a sum of little
more than 2 lakhs.

Recognizing the special needs and attention

that is required for women employees, RINL-VSP
facilitates the women workforce to be closely knit
through the local cell of Forum of Women in Public
Sector (WIPS) formed under the aegis of SCOPE.
A total of 551 Women employees, which
constitutes about 3% of the total work force are
working in the company.

Grant under Dr. B R Ambedkar Merit Recognition

Scheme SC and ST Categories: These awards
are meant exclusively for the children of
employees belonging to Scheduled Castes and
Scheduled Tribes.
Qualifying
Examination
12th Class /
Intermediate
Exam

Course in which
admission
is sought

Amount of No. of Awards

Award
SC
ST

Degree courses in
1500/- per
Engineering /
month for the
Architecture / Medical / duration of
Veterinary / Dentistry / the course
Agricultural Sciences /
Pharmacy / Law

8
(Eight)

4
(Four)

Grievance Redressal Mechanism

In RINL utmost importance is being given for
both employee and pubic grievance handling system.
A well-structured grievance handling system is
functioning for formal and informal grievances, which
provides easily accessible machinery to ensure
expeditious settlement of grievances leading to
increased job satisfaction, productivity and efficiency.
On-line Public Grievance Portal of Department of
Administrative Reforms and Public Grievances
(CPGRAMS), Government of India is being monitored
regularly to redress the grievance received from
CPGRAMS. A link to the GOIS Portal for public
grievance has also been provided in the RINL website.
The details of formal grievances for the year 2013-14
are as below:
Sl Types of Grievances
No of
No Grievan- outstanding Grievances
ces
as on
received
1st Apr13
during
the year

24

No of
No of
Grievances Grievances
disposed pending as
off during
on
the year
31st Mar 14

Public

Nil

Employees

Nil

Nil

The WIPS Cell of VSP was presented the

Jurys Special Award for 2012-13 instituted by
WIPS (under the aegis of SCOPE) in recognition
of the commendable work done by RINL-VSP for
the development of its women employees and the
award was presented at the 24th Annual National
Meet of WIPS held on 11th February 2014.
Some of the salient points relating to
empowerment /development of women in place
in RINL-VSP are as under:
In line with its image as a benevolent employer,
the Board of RINL-VSP, in Feb 2014 has
approved enhancement of maternity leave from
the existing 84 days to 180 days - one of the
few PSUs in the country to extend the benefit.
Two workshops on women development
exclusively for women employees were
organized by WIPS Cell in association with
Management Development Group. Women
employees are sent for external training
including foreign training.
A high level committee is in place since 2006
for examining the complaints against sexual
harassment at the workplace. No complaint
on the subject was received by the committee
in 2013-14.
The WIPS Cell has also associated with CSR
department for organising two literacy
programmes (under the aegis of PRATHAM, an
NGO) & Courses on Tailoring & Beautician
Course (under the aegis of Jan Shikshan
Sansthan) for women residing in Aganampudi
& Gangavaram - Rehabilitation Colonies of
Visakhapatnam.
The WIPS cell also runs a crche in the
Ukkunagaram Township for the benefit of

working women. The management has

provided support by way of provision of air
conditioners, water purifier, cement benches
etc for the benefit of the children in the crche.

procurement activities. During 2013-14 about 95%

of contract values are covered with IP, which is in
line with Standard Operating Procedure (SOP) of
Central Vigilance Commission.

Vigilance

Right to Information

Vigilance Department of RINL took various

measures to promote transparency and integrity
in RINL with specific focus on preventive vigilance.
In this direction, system studies were conducted
on the procedures being followed in
procurements, sales and award of contracts
including expansion area for improving existing
procedure and systems, wherever required and
intensive examination of contracts / purchase
orders were conducted. Identification of sensitive
posts, tracking rotational transfers, surveillance,
conducting regular/surprise checks to verify
system compliance, etc., were also undertaken.
Besides, special vigilance awareness drives were
also organised to create awareness amongst the
employees and other stakeholders on relevant
aspects of vigilance. Assistance was provided to
the concerned for expeditious processing of
disciplinary cases relating to vigilance.

Right to Information Act, 2005 (RTA) has been

implemented in true spirit across the company.
Information available in the 17 manuals of the RTI
portal in company website has been updated in
accordance with the requirement of section 4(1)(b)
of Right to Information Act-2005.
A total of 529 requests have been received
under the Right to Information Act, by RINL during
the period 1st April, 2013 to 31st March, 2014. Out
of the same, 412 requests have been disposed off
by furnishing information to the seekers.
90 cases appealed to First Appellate
Authorities, out of which 52 appeals have been
disposed off as on date.

Two cases were appealed to CIC by the

appellant and both the cases have been disposed
off by the CIC. In one case, CIC has upheld the
decision of CPIO / 1st Appellate Authority and in
The following activities were undertaken to one case CIC had directed to furnish certain
promote transparency and integrity in RINL during additional details to the Appellant.
the year 2013-14:
Citizen Charter
Conducted 289 system checks including
RINL demonstrates its ability to consistently
39 quality checks and 70 rake/road provide quality products and efficient and
reweighments.
responsive services that meet requirements of our
Conducted 18 Vigilance awareness sessions on Citizens with applicable legal, statutory and
regulatory requirements. It aims to enhance
preventive vigilance, ethics, etc.
Citizens satisfaction and to continually improve
VIGIL- an online application has been developed our products and service delivery process.
for tracking complaints and generating reports.
The Management of RINL is totally
Spandana - in-house magazine of RINL has committed to excellence in public service delivery
also made an impact to bring in Awareness through good governance by a laid down process
among stakeholders.
of identifying Citizens, commitment to them in
RINL bagged National Vigilance Excellence meeting their expectations, and communication
Award-2013, Corporate Vigilance Excellence to them of key policies in order to make the service
Award 2013-14 and four Officers received delivery process more effective.
Vigilance Excellence Awards in individual category. Progressive use of Hindi
Integrity Pact

Implementation of Official Language Policy

RINL/VSP is one of the first organizations to and compliance of specified rules has always been
implement Integrity Pact (IP) w.e.f April2007, on given its due importance at RINL. In this regard
25

training and various other activities have been Corporate Social Responsibility
undertaken as outlined in the approved roadmap
In line with the credo of RINLs Vision, to be
of the company.
a respected Corporate Citizen, ensure clean and
Initiatives taken towards progressive use of green environment and develop vibrant
Hindi during 2013-14 are as follows:
communities around VSP, RINL has been
167 employees were trained in two batches relentlessly taking up several community
under Hindi Prabodh / Praveen courses development projects.

conducted by Hindi Teaching Scheme, Ministry

As per DPE Guidelines, the CSR Budget was
of Home Affairs, Govt. of India.
allocated and about 20.31 Cr was spent on CSR
606 employees were trained in Hindi activities during 2013-14. The focus areas for CSR
Workshops conducted at HQ, Mines and in VSP include: Peripheral Development, People
Care, Health care, Education, Environmental care,
Regional/Branch Offices.
Sports & Cultural efflorescence, etc.
141 employees were trained to work on
Further, in terms of Section 135 of the
computers in Hindi through Unicode.
Companies Act, 2013, a Board Sub-committee on
Hindi classes were also conducted for CSR & SD has also been reconstituted in May 2014
housewives of Rehabilitation Colonies under (with an Independent Director as its Chairman, two
Dakshina Bharat Hindi Prachar Sabha courses. Independent Directors and three Functional
Six Departments/Sections were inspected in Directors as its Members) for necessary
each quarter and necessary help was extended compliance with the provisions of the Companies
Act, 2013 and Rules made thereunder.
for progressive use of Official Language.

Hindi Hasya Kavi Sammelan was also organized

to popularize Hindi.
Seminar on Steel & Engineering Terminology
was conducted in Hindi at RINL in association
with Commission for Scientific & Technical
Terminology, New Delhi. National Level
Technical Seminar was also organized on
Adoption of Eco-friendly Green Technology and
Various measures for Reduction of Carbon
Emission in Indian Steel Industry
In recognition to the efforts taken for
effective implementation of Official Language in
CSR activities are carried out with the
the organization, RINL won several awards and partnership of various NGOs and Govt.
accolades:
organizations like State Govt., Municipal
Second Prize of prestigious Indira Gandhi Corporation, CPWD, etc. The majority of the
activities have been taken up in Rehabilitation
Rajbhasha Shield- 5th time in a row.
colonies and peripheral villages for the people
Ispat Rajbhasha Shield.
who are instrumental in sparing their land for
Quarterly Hindi Magazine Sugandh selected constructing the steel plant. Welfare activities in
for National level by Department of Official the areas populated by Tribal / SCs /STs / Weaker
Language, Ministry of Home Affairs, Govt. of Sections of the Society, have been taken up
India.
towards education, health and community
2nd prize of National level for the best article development etc. RINL- CSR activities are
published in Hindi House magazine Sugandh. extended to other states as well depending on the
26

requirement.

Health care:

RINL-CSR was conferred with ABP News

Global CSR Excellence & Leadership Award in
Providing the state-of-the-art mobile cancer
the category of Community Development for
detection van Sanjeevan to reach out to people
addressing the social needs of rural communities.
in the interior villages for early detection and
Prominent activities during 2013-14:
enable speedy recovery from the dreadful
disease. 1823 patients have been tested &
Environment care:
28 suspected cases were referred for further
treatment.

Plantation of 75000 trees in Parawada village,

Visakhapatnam under project Green Visakha
Providing solar power system to St. Josephs
Home for the aged, Visakhapatnam, under
project Surya

Conducting
medical
camps,
Child
immunization programmes, AIDS awareness
27

campaigns, De-addiction programmes etc.

benefitting 17540 patients.

camps were organized and 1786 patients have

been tested.
Education:

Extending Financial assistance for development

of infrastructure for establishing Multi Storied
Hospital complex in King George Hospital
Premises, Visakhapatnam

Extending free education to children of Below

Poverty Line (BPL) families benefitting about
2000 BPL children.
Free education to differently abled children
through Arunodaya Special School,
Ukkunagaram
Organizing adult women literacy programs
through M/s. Pratham Education Foundation in
the surrounding and Tribal areas of
Visakhapatnam 375 women benefitted
Distributing school furniture, computers, play
Providing additional facilities / renovation
equipment, library books, shoes, school bags,
works at Mortuary, King George Govt. Hospital,
plates, glasses etc to 6 schools.
Visakhapatnam, thus making it the first AirPeople care:
conditioned & well ventilated Mortuary in
Andhra Pradesh

Providing Netra Jyothi a Mobile eye clinic

equipped with latest technologies 24 eye Supplying drinking water to Rehabilitation
28

colonies of VSP reaching about 13,000 Prestigious Indira Gandhi Rajbhasha Shield for
beneficiaries per day, for a period of 4 months
effective implementation of official language in
during summer.
the organization
Conducting vocational skill development Ispat Rajbhasha Shield for excellent efforts
programs viz; Security Guards, Driving,
towards usage of Hindi at RINL
Automobile mechanism, Electrical works, DTP, 2 nd position in the 10 th National Award for
Dress designing, Embroidery, Beautician
Excellence in Cost Management
course, etc, towards self reliance of youth in
peripheral villages of VSP and Mines areas Corporate Vigilance Excellence Award 2013-14
for outstanding initiatives in vigilance arena
about 1035 unemployed youth were benefitted.
Individual and Team Excellence
Help during Natural calamities:
Prime Ministers Shram Award SHRAM VIR by
Ministry of Labour.
Greatest Corporate Leaders of India Award to
CMD- RINL
Vishwakarma
12 employees

Rashtriya

Puraskar

for

All the 3 QC teams bagged Excellence Awards

at the International Convention on Quality
Control Circles-2013 (ICQCC-2013) held at
Taipei, Taiwan
Extending financial assistance of 475 Lakh
for Chief Ministers Relief fund, for taking up
relief measures in flood affected areas in the
States of Odisha and Uttarakhand.

Management Discussion and Analysis Report

Projects under progress:

Corporate Governance Report

The Management Discussion and Analysis Report

is annexed and forms part of the Directors Report
vide Annexure-I.

Construction of Multi-purpose halls

The Company strives to attain highest standards

Provision of community drinking water system of Corporate Governance. In line with the
at Chepalapalem
Guidelines issued by Department of Public
Repairs & re-carpeting of Road from Karepalli Enterprises, which have become mandatory from
May 2010, a separate section on Corporate
to Madaram (Madaram Mines)
Governance is annexed and forms part of the
Construction of a Dormitory for HIV/AIDS Directors Report vide Annexure-II.
affected children at Prathipadu, EG Dist., AP
Certification by the CEO & CFO
Awards and Accolades:
Certificate attested by the CEO & CFO is enclosed,
Excellence of RINLs performance during the forming part of the Corporate Governance Report
year got recognized by leading National and along with a declaration signed by CMD regarding
International institutions, major of which are:
Code of Conduct for Members of the Board and
Senior Management vide Annexure-III.
Organizational
Significant Achievement Award of CII-EXIM Certificate on Compliance of Guidelines on
Corporate Governance
Bank for Business Excellence 2013.
ICC Corporate Governance and Sustainability A Certificate on Compliance of Guidelines on
Corporate Governance issued by DPE in May 2010,
Vision Award 2013
29

for the year 2013-14 given by a practicing Company Statutory Auditors

Secretary is annexed herewith and forms part of M/s. Rao & Kumar and M/s. Tej Raj & Pal,
the Directors Report vide Annexure-IV.
Visakhapatnam were appointed as Statutory
Secretarial Compliance Report for the Financial Auditors of the Company for the year 2013-14 by
Year 2013-14
the Comptroller and Auditor General of India
The Secretarial Compliance Report, confirming (C&AG). The Statutory Auditors Report on the
the Company for the financial year
compliance to the provisions of Companies Act, Accounts of
st
1956, Rules made there-under and the provisions ended 31 March, 2014 is enclosed to the
contained in Articles of Association & Directors Report at Annexure-VI.
Memorandum of Association of the Company for
the year 2013-14 by a practicing Company
Secretary, is annexed and forms part of the
Directors Report vide Annexure-V.
Monitoring Mechanism for Subsidiary Companies
The Subsidiary companies of RINL are managed
by their respective Boards in the best interests of
their stakeholders. RINLs Functional Directors
are nominated on the Boards of the Subsidiaries.
The Company monitors performance of Subsidiary
companies, inter alia, by placing Minutes of Board
meetings of the subsidiary companies before the
Companys Board periodically. The Annual Reports
of the Subsidiary Companies are enclosed as a
separate volume with this Annual Report of the
company in terms of Section 212 of the
Companies Act-1956.
Joint Venture Mechanism

C&AG Audit
The Comptroller and Auditor General of India
(C&AG) vide its letter No. PDCA/A/c/Desk/201314/RINL/1.01/188 Dt. 22nd July, 2014 given NIL
Comments on the accounts of the Company for
the year 2013-14 under Section 619(4) of
Companies Act 1956 and the extant provisions of
the Companies Act 2013. A copy of the above letter
of C&AG is enclosed at Annexure-VII.
Consolidation of Accounts
As the Company is a fully owned Government of
India undertaking and is an unlisted Company, the
requirements in this regard as stipulated under
the guidelines of SEBI for consolidation of
accounts are not applicable. However, a statement
pursuant to Section 212 of the Companies Act
1956, relating to Subsidiary Company i.e. EIL is
placed at Annexure VIII.

The Company is one of the PSUs as a joint Cost Audit

venture partner in ICVL which was incorporated
Ministry of Corporate Affairs, Govt. of India
for acquiring Overseas Coal assets.
vide Order No.52/124/CAB-2005 dt. 07-07-2006
The Company has also formed a Joint notified RINL, for conduct of Audit of cost records
Venture with MOIL (another PSU) with 50:50 as maintained under Cost Accounting Records
shares for the purpose of setting up of a Ferro (Electricity Industry) Rules, 2001 for the financial
Alloys Unit at Bobbili in Andhra Pradesh.
year ending 31st March 2006 and thereafter every
year. Further, Ministry of Corporate Affairs, Govt.
Schedule VI
of India, vide their Order no 52/26/CAB-2010
The Annual Accounts for the Financial Year dt. 30th June, 2011 prescribed Cost Audit for Iron
2013- 14 were prepared and presented as per the & Steel Industry w.e.f. 1 st April, 2012. As
new Schedule VI. The Change between the Old prescribed, the Cost Accounting Records are being
Schedule VI & New Schedule VI is basically a maintained by the Company and Cost Audit reports
change in the presentation and disclosure are being submitted by the Cost Auditor.
requirements. However, the application of
Accounting Standards and adopted Accounting Cost Auditor
Policies remain the same.
RINL had appointed the Cost Auditor
M/s Narasimha Murthy & Co, Cost Accountants,
30

Hyderabad, under Section 233B of the Companies

Act, 1956 for the Financial Year 2013-14. The Cost
Audit Reports for the financial year 2013-14 are
filed with the Cost Audit Branch within the
stipulated time.
Report on Conservation of Energy, Technology
Absorption etc.

Directors Responsibility Statement:

Statements / Data which do not relate to
RINL and are used / made in this report are from
sources which are considered reliable and
Company cannot be held responsible for its
authenticity. Further, statements describing the
Companys projections, estimates and
expectations are forward looking statements
within the meaning of applicable securities laws
and regulations. Actual results may differ
materially from those expressed depending on the
circumstances/ situations.

Information required under Section 217(1)(e)

of the Companies Act, 1956 read with the
Companies (Disclosures of Particulars in the
Report of Board of Directors) Rules, 1988
regarding Energy Conservation, Technology
Absorption and Foreign Exchange earnings and
Pursuant to provisions of Section 217 (2AA)
outgo during the Financial year 2013-14 are of the Companies Act, 1956, the following
furnished in the Annexure-A to the report and also statement relating to Annual Accounts for the
in Form-A and Form-B annexed to this report.
financial year ended 31st March, 2014 is made that:
Foreign Exchange Earnings and Outgo

i)

in the preparation of the Annual Accounts,

applicable Accounting Standards had been
followed along with proper explanation
relating to material departures;

The Foreign Exchange Earnings during the

year 2013-14 is 741.45 Crore and the Foreign
Exchange Outgo during the year was
4027.51Crore (Includes 131.94 Crore on ii) the Directors had selected such accounting
Expansion activities/ Capital Goods).
policies and applied them consistently and
made judgments and estimates that are
Particulars of Employees
reasonable and prudent so as to give a true
There was no employee of the Company who
and fair view of the state of affairs of the
received remuneration in excess of the limits
Company at the end of the financial year and
prescribed under Section 217(2A) of the
of the profit or loss of the Company for that
Companies Act 1956 read with the Companies
period;
(Particulars of employees) Rules, 1975, as
iii) the Directors had taken proper and sufficient
amended from time to time.
care for the maintenance of adequate
Payment of Dividend
accounting records in accordance with the
provisions of this Act for safeguarding the
The record date for payment of Dividend is
assets of the Company and for preventing and
the AGM Date. Dividend for the financial year was
detecting fraud and other irregularities;
recommended by the Board of Directors of the
st
Company in their 281 Meeting held on July 03, iv) the Directors had prepared the Annual
2014 for the Equity Shareholders as on the date
Accounts on a going concern basis.
of AGM and as per terms to preference
shareholders.
Deposits
The Company has not invited/accepted any
deposits falling within the purview of Section 58
of the Companies Act, 1956 during the year
2013-14.

31

Directors appointments and cessations

Appointments
Name of the Director
Appointed w.e.f
Shri V.K. Thakral, IAS
31.05.2013
Shri P.C. Mohapatra
01.11.2013
Shri P.Madhusudan*
01.01.2014
Shri Rajib Sekhar Sahoo
20.02.2014
Shri Ajay Kumar Goyal
20.02.2014
Lt Gen. Arvind Mahajan (Retd.)
20.02.2014
Dr Sheela Bhide, IAS (Retd.)
20.02.2014
Dr G.B.S. Prasad
01.05.2014
Shri D N Rao
01.08.2014
Shri TVS Krishna Kumar
25.08.2014

also appreciate the commitment, sincere efforts

and hard work put in by all the employees of the
Company, Trade Unions and Steel Executive
Association whose whole hearted contribution has
been vital in helping the Company to scale greater
heights.
For and on behalf of the Board of Directors

(P Madhusudan)
Chairman-cum-Managing Director

*elevated from Director (Finance) to ChairmanVisakhapatnam

Cum-Managing Director.
Dated: 8th Sept. 2014
Cessations:
Name of the Director
Cessation w.e.f.
Shri APVN Sarma, IAS (Retd.)
29.09.2013
Shri H S Chahar, IAS (Retd.)
29.09.2013
Shri Swashpawan Singh, IFS (Retd.)
30.09.2013
Dr U D Choubey, DG (SCOPE)
10.10.2013
Shri N S Rao
31.10.2013
Shri A P Choudhary
31.12.2013
Shri Y R Reddy
30.04.2014
Shri Umesh Chandra
31.07.2014
Shri Rajib Sekhar Sahoo*
22.09.2014
Shri Ajay Kumar Goyal*
23.09.2014
Dr. Sheela Bhide*, IAS (Retd.)
24.09.2014
Lt.Gen. Arvind Mahajan* (Retd.)
24.09.2014
The Board of Directors wishes to place on
record their appreciation of the valuable services
rendered and contribution made by the outgoing
Directors during their tenure on the Board of RINL.
The Board of Directors of the Company
acknowledge with deep appreciation the valuable
guidance, assistance, cooperation and support
extended by the Government of India, especially
the Ministry of Steel and Govt. of Andhra Pradesh
and wish to place on record their appreciation for
the cooperation extended by its Valued Customers,
Suppliers, Railways, Bankers, Auditors,
Contracting agencies, Business Associates,
Consultants, Other officials of Ministries of various
other States, the local District Administration and
Law and Order authorities. The Board of Directors
32

* Cessations that have taken place subsequent to

Directors Report dtd. 08-09-2014, which were put
up for approval of AGM, are now incorporated/
updated.

Annexure 1

Management Discussion and

Analysis Report for 2013-14
1.0 Industry Structure and Developments
1.1 World Steel Scenario
Challenges are being faced by the steel
industry world wide with slowdown in
global economies. However, as per World
Economic Outlook released by IMF, the
Global Growth is expected to rebound
from second quarter of 2014. The Global
Growth projections are 3.4% and 4.0% for
2014 and 2015 respectively against 3.2%
in 2013. During the same period, India is
projected to grow at 5.4% and 6.4%
respectively against 5.0% in 2013. On the
other hand, China is expected to slow
down to 7.4% and 7.1% from 7.7% in 2013.
World Steel Association forecasts that
global apparent steel use will increase by
3.1% only to 1,527 Mt in 2014 following
growth of 3.6% in 2013. However, in 2015,
it is forecast that world steel demand will
grow further by 3.3% and will reach
1,576 Mt. In 2015, growth in most parts of
the world is expected to accelerate due
to a continuing steady recovery in the
developed
economies
and
an
improvement in the situation for the
emerging economies. But Chinas steel
demand will further decelerate and this
will prevent the broad recovery
momentum from registering a higher
global growth rate for 2015. On the other
hand, in India, steel demand is expected
to grow by 3.3% in 2014, against 1.8%
growth in 2013. The growth is expected to
further accelerate to 4.5% in 2015.
Thus, India is slowly emerging as the next
growth driver of Steel Demand in the
world.

1.2 Macro-economic Indicators of India

During 2013-14, the overall growth of GDP

was 4.9% as compared to 4.5% for
2012-13. This growth was mainly
contributed by Agriculture (4.6%) and
Service Sectors (6.9%). Industry growth
was only 0.7%. The Index for Industrial
Production (IIP) registered a negative
growth of (- 0.1%) during 2013-14, against
growth of 1.1% in the CPLY, representing
a continued sluggish industrial growth
during the year. Steel Industry being core
sector also followed almost same trend.
However, as mentioned earlier, the growth
is set to pick up further in the coming
years.
1.3 Indian Steel Industry
During 2013-14, while the production of
finished steel in India registered a growth
of 4.1%, Steel consumption registered a
growth of only 0.6%, resulting in India
becoming a net exporter of Steel, a
reversal from the earlier status of net
importer since 2006-07. The performance
of Indian steel industry in 2013-14 was as
follows:
Unit : Mt
Item
Finished Steel production
for sale

2012-13 2013-14

81.68

85.01

%
Growth
4.1%

Import

7.93

5.45 (-)31.3%

Export

5.37

5.59

4.1%

Total availability

84.24

84.87

0.7%

Steel consumption

73.48

73.93

0.6%

33

The future of the Indian steel industry is

bright. The government plans to increase
infrastructure spending from the current
5 percent GDP to 10 percent by 2017, and
the country is committed to investing
US$ 1 trillion in infrastructure during the
12th Five-Year plan. As per the Industry
insiders even if 15 percent is taken as
steel component in the total investment,
then it means additional demand worth
US$ 75 billion of steel in the next five
years.
India is envisaging to achieve steel
production capacity of 300 million tonnes
per annum (MTPA) by 2025 from the
current 90 Mt. However, this calls for an
investment of US$ 210 billion over the
next decade
1.4 Steel Prices
The decline in International prices of steel
products continued in 2013-14 as well,
with slowdown in consumption.
Unit: US $/tonne
Month

Wire Rods

Rebars Squares

Scrap

March 12

683

668

602

420

March 13

601

592

528

384

March 14

545

530

500

355

In the domestic market, Steel prices had

shown a declining trend during
Jun-Dec13. RINL has also suffered from
this trend. However, during the 4th
Quarter of the year, the prices firmed up
due to improvement in Market
sentiments.
2.0 Your Companys performance
2.1 The production of crude steel was higher
than the previous year in all the months,
except for the month of October 2013. The
production got severely affected in
October and the plant was forced to be
operated at 40 to 50% capacity level for
several days, as the State Grid was
34

disconnected from the Plant captive

power plant network for 3 days as part of
the agitation on separate state, Cyclone
Phailin with impact on production for
3 days and unprecedented rainfall
impacting transportation of Iron ore and
Coal for about a week.
Further, BF-1 has been shut down since
22nd Oct as part of Category-1 Capital
Repairs.
Production of Saleable Steel was affected
by Power Restrictions imposed in the wake
of acute shortage of power in the state.
However, with timely initiatives taken by
the Management, the production could be
stepped up and positive growth of 4%
could be achieved in Crude Steel
production by the end of the year.
2.2 Financial Overview:
Your company has been able to achieve a
Profit After Tax (PAT) of Rs.366.45 Crs,
with Turnover of Rs.13,489.46 Crs. The
State of Andhra Pradesh and State of
Telangana where RINL has highest
market share, got severely affected by
acute power crisis forcing several
industries to throttle /or cut down
production. Competition in the Bars &
Rods market increased due to higher
production in this category from other
major competitors without corresponding
increase in consumption.
Input costs especially basic raw materials
like Iron ore and Ferro alloys along with
foreign exchange fluctuations also
affected adversely the bottom-line growth.
The initiatives taken by RINL collective
could partially off set the adverse impact
of the above factors, mainly, through cost
reduction measures like optimisation of
Coal blend, maximisation of captive
generation of power and improvement in

other operational areas along with

prudent fund management.
2.3 Financial Performance
Particulars

Sales
Turnover

13552.93

1158.75

1072.60

Profit Before
Tax (PBT)

549.15

526.47

Profit After
Tax (PAT)

366.45

352.83

PBDIT

Capex for an amount of Rs.1,512 crs

F.Y 2013-14 F.Y 2012-13 % Inc/(Dec)

(Rs.Crs)
(Rs.Crs)
over
previous
year
13489.46

Lower interest income is due to depletion of

Term Deposit during the year on account of
the following:

Redemption of Preference Share capital

amounting to Rs.606.97 crores as per the
Redemption Schedule.
Dividend payment of Rs.102 Crs (Rs.44 Crs
of Final Dividend for FY 2012-13 and
Rs.58 Crs Interim Dividend for FY 2013-14).
2.4.3 Expenditure
(Net of Inter Account Adjustments)
Particulars

2.4 Analysis of the Financial Performance of

the Company
2.4.1 Sales Turnover
Particulars

Sale of
Saleable steel
products
Sale of other
Products
Total Sales
Turnover
Less: Excise
Duty
(Including ED
on Trial run
sales)
Net Sales
Turnover

F.Y 2013-14 F.Y 2012-13 % Inc/(Dec)

(Rs.Crs)
(Rs.Crs)
over
previous
year

11606.27

11409.27

1883.19

2143.66

(12)

13489.46

13552.93

(0)

1464.72

(3)

12072.23

12088.21

(0)

2.4.2 Other Revenues

Particulars

F.Y 2013-14 F.Y 2012-13 % Inc/(Dec)

(Rs.Crs)
(Rs.Crs)
over
previous
year

Interest
Earned

180.05

233.33

(23)

Other
Non-operating
Income

126.83

221.96

(43)

0.11

0.13

(15)

Dividend

Cost of
materials
consumed

7025.82

8098.66

(13)

Employees
benefits

1751.10

1469.07

19

Finance Costs

338.12

359.25

(6)

Depreciation &
Amortisation

271.48

186.88

45

Other Expenses
(net of Inter
acc Adj)

2382.88

2244.58

11769.40

12358.44

(5)

Total

1417.23

F.Y 2013-14 F.Y 2012-13 % Inc/(Dec)

(Rs.Crs)
(Rs.Crs)
over
previous
year

Higher depreciation is on account of full year

depreciation for BF-3 capitalised in 2012-13
and capitalisation of Boiler-6 and TG-5 during
the year.

Higher Employee benefits are mainly on

account of higher Dearness Allowance (DA),
promotions and increments and additional
impact of finalization of wage revision for
Non-Executive employees during the year.

35

2.4.4 Analysis of Expenditure for the F.Y 2013-14

During the year, the following major units

together with related sub units were
capitalized which resulted in increase in net
block assets.
Unit

Value
(Rs.Crs)

Date of capitalisation

330 T Boiler-6

300.71

31st Dec 2013

67.5 MW TG5

279.95

28th Feb 2014

2.5 Contribution to Exchequer

RINL contributed Rs.2250 Crs to the National
2.8 Non-Current Assets & Non-Current
Exchequer in the form of dividend, taxes and
Liabilities
duties to various Government agencies as
Particulars F.Y 2013-14 F.Y 2012-13 % Inc/(Dec)
against Rs.2374 Crs during the previous year.
(Rs.Crs)
(Rs.Crs)
over
In addition to the above, RINL has paid to the
previous
Govt of India, an amount of Rs. 606.97 Crs (P.Y.
year
Rs.1380.50 Crs) on account of redemption of
Non-Current
preference share capital.
Liabilities

2.6 Borrowings
Particulars

F.Y 2013-14 F.Y 2012-13 % Inc/(Dec)

(Rs.Crs)
(Rs.Crs)
over
previous
year

Secured Loans

1792.97

1827.78

(2)

Unsecured
Loans

3150.49

3072.22

Total Loans
(Long &
Short Term)

4943.46

4900.00

F.Y 2013-14 F.Y 2012-13 % Inc/(Dec)

(Rs.Crs)
(Rs.Crs)
over
previous
year

4530.03

3787.07

112

2.75

2.74

(14)

Capital Workin-Progress
10669.46

9965.24

(6)

22.20

48

Intangible

Intangible
Assets under
development

36

1241.56

(3)

Other Long
term Liabilities

165.56

105.00

58

Long term
Provisions

531.43

414.77

28

Non-current
Investments

362.53

362.58

Long term
Loans &
Advances

616.05

498.36

24

60.23

36.58

65

Other Non-

Net Block
Tangible

1203.53

Non-Current
Assets

2.7 Fixed Assets

Particulars

Long term
Borrowings

30.11

Current Assets

2.9 Current Assets, Current Liabilities

Particulars

F.Y 2013-14 F.Y 2012-13 % Inc/(Dec)

(Rs.Crs)
(Rs.Crs)
over
previous
year

CURRENT
ASSETS
Inventories
Semi-Finished/
Finished goods
Raw materials
Stores &
Spares

2.10 Initiatives taken by RINL:

2065.05
1311.31

2083.70
1283.35

(1)
2

486.68

461.55

3863.04

3828.60

Gross
receivables

823.97

1029.96

(20)

Less: Provision
for Trade
receivables

20.32

20.31

Net
Receivables

803.65

1009.65

(20)

Cash & Bank

balances

175.89

1625.02

(89)

Short term
Loans &
Advances

3461.35

3417.75

Other Current
Assets

96.73

96.73

(0)

Total Current
Assets

8400.66

9977.75

(16)

Total
Inventories
Trade
Receivables

CURRENT
LIABILITIES

2.10.1 Cost Control Measures:

a) Improvement in Techno Economic
Parameters like Better Yields of
Liquid Steel, LD Gas, Gross Coke,
Ammonium Sulphate, Lower Power
& Heat Consumption in Coke Ovens,
Blast Furnace, CRMP, MMSM and
TPP, Reduction of Off-grade Heats
and Reduction in Railway
Demurrages resulted in additional
savings of Rs.79 Crs in 2013-14.
b) Recycling of Metallurgical Wastes,
Tar / Benzol Sludge, LD Slag, Used
refractories, CRMP Returns,
Copper scrap, CRMP Bag Filter
Dust, lime fines, lime Briquetting,
Reclaimed Spares, Reclaimed Oil,
Maintenance Scrap resulted in
savings of Rs.162 Cr.
c) Substitution of materials by cheaper
alternatives like Nut Coke in place
of BF Coke in Blast Furnace
resulted in savings of Rs.47 Cr.
2.10.2 Treasury Management Initiatives

Short term
Borrowings

3739.93

3658.44

Trade payables

829.93

737.94

12

Current
Liabilities

5484.04

5615.19

(2)

Short Term
Provisions

157.65

173.10

(9)

10211.55

10184.67

Total Current
Liabilities &
Provisions

Liquidation of Term Deposits during the year

on account of Capex programmes for an
amount of Rs.1512 Crs (against Budget
estimate (RE) of Rs.1500 Crs) and redemption
of Preference Share capital amounting to
Rs.606.97 Crores as per the Redemption
Schedule have resulted in lower Cash & Bank
balances.

a) The average working capital interest

rate was lower at 8.54% compared
to previous year 9% in spite of
increase in domestic borrowing
rates, resulting into savings of Rs.15
Crs approx. This was achieved by
reorganising the banking facility
limits.
b) Treasury Management initiatives
explored the interest rates scenario
to get higher interest yield on
investments which were at 10.22%
37

compared to domestic INR loans

which were raised at an average
cost of 9.10% against much higher
market rate of Borrowings. (SBI
Cash Credit rates of 9.95% to
10.40% pa during the year).
c) During the year, Fixed Deposits of
Rs.495 Crs were pre-matured and
re-invested to explore the interest
rates, it resulted in additional
interest income of Rs. 2.05 Crs.
d) Savings on Borrowings during the
year 2013-14.
Description

FY 2013-14
Weighted
Savings
avg. RoI (%)
(Rs.Crs)
8.25

47.32

Commercial Paper (CP)

8.59

11.15

Borrowings from
Banks/Fin. Institutions

9.81

2.60

Total for all loans

8.54

61.07
10.21

Notes: (**)Weighted Average Cash Credit

interest rate is calculated based on the
secured Cash Credit limits sanctioned
with periodical interest rates.
e) India Ratings & Research Pvt Ltd,
(IRR) a Fitch Group Company
reaffirmed credit rating for short
term Bank facilities as IND AA/IND
A1+ and for long term issuer
ratings as IND AA. Further, IRR
reaffirmed credit rating for short
term debt instruments as IND A1+
for the year.
3.0 Outlook for the company in 2014-15:
a) Stage -1 units of expansion to 6.3 Mt have
already been commissioned and efforts
are on to stabilize the operations and
Stage-2 units of the 6.3 Mt expansion
project will be commissioned during
2014-15. Hence, RINL is at a crucial
juncture of stabilisation and ramping up
38

b) The thrust areas for the year include

maximization of asset utilization,
production of high end value added steel
from SMS-2.
4.0 Strengths and weaknesses:
The few strengths and weaknesses of the
company (not an exhaustive list) are placed
below:
Strengths

Weaknesses

Lack of level playing

field vis--vis others
due to lack of Captive
Strategic advantage of
Mines for iron ore &
Shore based location.
coking coal.
Operational Efficiency.

Single Location
Diverse Customer
Company & only Long
Base served through
products, exposed to
an Extensive
cyclic markets.
Marketing Network.

Steep rise in Cost of
Experienced
production and fall in
Management Team.
margins.

Strong position in a
High Growth Market.

Foreign currency
borrowings (FCB)

Wt.Avg interest rate on

Cash Credit(**)

production from expansion units during

2014-15.

Availability of land and
High cost of servicing

layout for Expansion
huge Equity base.
upto 20 Mt.

Subdued

Image as quality
International
producer & value for
& sluggish domestic
money supplier.
Markets.

Committed workforce.

Opportunities and Threats

Opportunities

Threats

Huge demand
potential in view of
the projected growth.

Encouraging signs due
to huge infrastructure
spend planned in 12th
Five year plan.

Projected growth in
Steel consumption.

Improved availability
of Ports & logistics.

Diversifying to new
product mix like
Axles/ Wheels and
Transmission
line Towers etc.

Stiff competition
further compounded
by Capacity
Expansion by
competitors and
entry of International
players.

Increasing raw
material prices &
shift of value chain
towards raw
materials.

Oligopolistic coal
supply side.

Single iron ore
supplier located in
disturbance
prone areas.

Predominant
secondary sector in
long products.

New materials,
products or
technologies could
reduce the demand
for RINLs steel
products.

Continuing of poor
macro-economic
environment e.g.
slowdown in
economic growth
rates, depreciating
Rupee, etc.

5.0 Road Ahead for RINL:

RINL is committed to expansion to its
potential capacity exploiting the already
existing infrastructure in Visakhapatnam.
However, lack of captive iron ore and coal
mines to RINL continues to hamper the long
term expansion plans of RINL.
The long awaited success came with regard
to Raw Material Securitisation for RINL. LOI
has been received for the first ever Iron Ore
lease to the Company in Bhilwara District of
Rajasthan over an area of about 946 Hectares.
Government of Rajasthan has also
recommended allotment of another adjacent
block of Iron Ore over an area of 4,500 Hectares
and it is under consideration of Ministry of

Mines, Govt. of India. RINL will be setting up

the state of art mining facilities to use so
much needed low grade iron ore, in Bhilwara.
RINLs strategic initiative for laying of Slurry
Pipeline from Nagarnar to Visakhapatnam
and setting up of Pellet Plant at
Visakhapatnam in a Joint Venture with NMDC
is also taking shape.
RINL for the first time joined hands with
Railways for setting up of a Forged Wheel
Plant adjacent to the Rail Coach Factory in
Raebareli, Uttar Pradesh. This plant would
be the largest in the country and would
substitute imports within a short time. The
project has been frozen and orders are to be
placed shortly and the unit is likely to get
commissioned by 2017-18.
In any case, RINL being a shore based steel
plant with port in its backyard is placed in an
advantageous position for exports. RINL has
taken initiatives for leveraging the same by
opening branch in Sri Lanka and planning
further addition of overseas branches. RINL,
which exported 1 lakh tonne steel last fiscal,
aims to treble the same in the current fiscal.
6.0 Sustainability Initiatives:
The sustainable economic development of
any country requires creating sustainable
livelihood besides industrial development on
large scale. Keeping its responsibility
towards the ecosystem, RINL has further
strengthened its sustainability policy which
focuses on Society, Energy and Environment
and the Sustainability Policy stands to fulfil
the same.
7.0 Internal Control Systems and Adequacy
The Company is having an efficient system of
Internal control for achieving the objectives
of the Company by ensuring efficiency in
operations, protection of resources, accuracy
and promptness in financial reporting and
compliance with the laid down policies and
procedures along with relevant Laws and
regulations.
In RINL, there is a separate Internal Audit
39

Department and the Internal Audit is

conducted by a team of experienced
Chartered Accountants, Cost & Management
Accountants and Engineers including a
System Analyst with diversified experience.
The Internal Audit Department carries out
reviews, evaluates and appraises various
systems, procedures and policies of the
Company and suggests meaningful and
useful improvements along with corrective
measures wherever required.
The Internal Audit department focuses on
transparency in the systems and proper/
adequate internal control mechanisms.
Annual Audit Programmes are drawn up
covering critical areas of various
departments in order to bring overall



40

improvement in the Company. From time to

time, the Audit Committee is being apprised
on status of pending audit paras.
The Internal control systems are
commensurate with the size of the Company
and the reports containing significant Audit
findings are submitted to the Audit
Committee of the Company from time to
time.
The Company has put in place an Enterprise
Risk Management (ERM) Policy and
procedure duly approved by the Board and
the same has been put on Companys
Website. ERM is being implemented across
the organization covering both Works and
Non Works Departments by an In-house
team.

Annexure - II

REPORT ON CORPORATE GOVERNANCE

FOR THE YEAR 2013-14
member of the Board owes his/her first duty for
protecting and furthering the interests of the
A strong reputation for Integrity and Ethical
Company.
conduct is an important Corporate Asset. It
assures the Employees, Customers, Vendors, Board of Directors
Regulators, Community neighbors and Composition of Board
Shareholders that the Company will deal with
RINL follows DPE/SEBI Guidelines relating
them honestly and fairly. Everyone would benefit
conditions of Corporate
from being a part of the Company, which has built to the compliance with the
st
reputation for honorable and principled actions. Governance. As on 31 March, 2014, the total
The philosophy of the Company in relation to number of Board of Directors is fifteen comprised
Corporate Governance is to ensure Accountability, of Chairman-Cum-Managing Director, Four Whole
Transparency, Integrity, Disclosures and Reporting time Functional Directors, Two Part-time official
that conforms fully with laws, regulations, Directors (i.e Government Nominee Directors) and
guidelines, etc. and to promote ethical conduct Eight Part-time Non-official Directors(i.e
throughout the organization. RINL believes in- Independent Directors). Director (Finance) post
conforming-to the highest standards of corporate- has fallen vacant consequent tost elevation of
govemance in the country. It recognizes that each Sri P.Madhusudan as CMD w.e.f. 1 Jan 2014.
Companys Philosophy

The Board of Directors as on 31st March, 2014 comprised as follows:

Functional Directors
1)
2)
3)
4)
5)

Shri P. Madhusudan
Shri Umesh Chandra
Shri T.K. Chand
Shri Y.R. Reddy
Shri P.C. Mohapatra

Chairman-Cum-Managing Director
Director (Operations)
.
Director (Commercial)
Director (Personnel)
Director (Projects)

Part-time official Directors (i.e Government Nominee Directors)

6)

Shri V.K. Thakral, IAS

7)

Shri Lokesh Chandra, IAS

Part-time Non-official Directors (i.e Independent Directors)

8)
9)
10)
11)

Shri V.S. Jain

Shri Ashhok Kumar Jain
Prof. Sushil
Prof. S.K. Garg

12)
13)
14)
15)

Dr. Sheela Bhide*, IAS (Retd.)

Lt.Gen. Arvind Mahajan (Retd.)
Shri Ajay Kumar Goyal
Shri Rajib Sekhar Sahoo

* One Woman Director has been appointed in Feb2014, which complies with the provisions of the
Companies Act, 2013.

41

Board Meetings
During the financial year ended 31st March, 2014, Eleven Board Meetings were held on following dates;
Board Meeting No.

Date

Board Meeting No.

Date

267
268
269
270
271
272

16-04-2013
25-04-2013
31-05-2013
21-06-2013
28-06-2013
05-09-2013

273
274
275
276
277

26-09-2013
18-11-2013
21-11-2013
17-12-2013
24-01-2014

Details of number of Board Meetings attended by Directors, attendance at the last Annual General
Meeting (AGM), number of other directorships and number of Board Sub-Committees positions as
Chairman / Member in RINL/VSP etc., during the year 2013-14 were as follows:

S.No.

Category
Name & Designation
of the Director(s)

No. of
No. of Board SubNo. of
No. of RINL
Committees
in other
Meetings
Attendance
No. of
other
Board Subcompanies
as
held
at
last
AGM
Board
DirectorCommittees as Chairman / Member
during Meetings held on
ships
on 31.3.2014
as on 31.3.2014
respective attended 21-09-2013
held as on
***
***
tenure of
31.3.2014 Chairman Member Chairman Member
Director
Functional directors

1)
2)
3)
4)
5)

6)

7)

8)
9)
10)

42

Shri P.Madhusudan**
CMD (w.e.f 01.01.2014)
11
11
Y
6
NIL
2****
NIL
NIL
Shri A.P.Choudhary
CMD (upto 31.12.2013)
10
10
Y
Retired Retired Retired Retired Retired
Shri Umesh Chandra
Director (Operations)
11
10
Y
5
NIL
1
1
3
Shri T.K.Chand
Director (Commercial)
11
11
Y
1
NIL
1
NIL
1
Shri Y.R.Reddy
Director (Personnel)
(upto 30.04.2014)
11
11
Y
NIL
NIL
2
NIL
NIL
Shri P.C.Mohapatra
Director (Projects)
(w.e.f. 01.11.2013)
4
4
N.A.
NIL
NIL
NIL
NIL
NIL
Shri N.S.Rao
Director (Projects)
(upto 31.10.2013)
7
7
Y
Retired Retired Retired Retired Retired
Part-time official Directors (i.e Government Nominee Directors)
Shri E.K.Bharat Bhushan, IAS
(upto 29.04.2013)
2
2
Resgn
Resgn
Resgn
Resgn Resgn Resgn
Shri V.K.Thakral, IAS
(w.e.f. 31.05.2013)
8
7
N
4
NIL
NIL
1
NIL
Shri Lokesh Chandra, IAS
11
10
N
7
NIL
NIL
NIL
NIL

S.No.

11)
12)
13)
14)
15)
16)
17)
18)
19)
20)
21)
22)

Category
Name & Designation
of the Director(s)

No. of
No. of Board SubNo. of
No. of RINL
Committees in other
Meetings
No. of Attendance
other
Board Subcompanies as
held
Board at last AGM DirectorCommittees as Chairman / Member
during Meetings held on
ships
on 31.3.2014
as on 31.3.2014
respective attended 21-09-2013
held as on
***
***
tenure of
31.3.2014 Chairman Member Chairman Member
Director

Part-time Non-official Directors (i.e Independent Directors)

Shri A.P.V.N.Sarma, IAS (Retd.)
(upto 29.09.2013)
7
5
N
Retired Retired Retired
Shri Swashpawan Singh, IFS (Retd.)
(upto 30.09.2013)
7
7
N
Retired Retired Retired
Dr. U.D.Choubey, DG (SCOPE)
(upto 10.10.2013)
7
3
N
Retired Retired Retired
Shri H.S.Chahar, IAS (Retd.)
(upto 29.09.2013)
7
6
N
Retired Retired Retired
Shri V.S.Jain
11
9
N
3
NIL
NIL
Shri Ashhok Kumar Jain
11
11
Y
NIL
2
NIL
Prof. Sushil
11
11
N
2
NIL
2
Prof.S.K.Garg
11
11
N
NIL
NIL
1
Dr.Sheela Bhide* IAS (Retd.)
0
0
N.A
3
#
#
Lt.Gen.Arvind Mahajan* (Retd.)
0
0
N.A
3
#
#
Shri Ajay Kumar Goyal*
0
0
N.A
1
#
#
Shri Rajib Sekhar Sahoo*
0
0
N.A
5
#
#

Retired Retired
Retired Retired
Retired Retired
Retired Retired
1
3
NIL
NIL
NIL
NIL
NIL
NIL
NIL
5
NIL
NIL
NIL
1
1
5

*Sl.No. 19 to 22 assumed charge w.e.f. 24.02.2014; Y-Attended; N - Not attended

**Sl.No.1 Shri P.Madhusudan was elevated from Director (Finance) to CMD. Prior to his elevation as CMD, he attended
the Board Meetings in the capacity of D(F).
N.A. - Not appointed and hence not applicable; Resgn- Resigned;
# As on 31.03.2014, No membership in any Committee(s) of RINL
*** Audit Committee, CSR & SD Committee, Remuneration Committee, Shareholders Investors Grievance Committee being
Corporate Governance related Committees, are only considered & position as on 31.03.2014, was only reflected above.
**** in the capacity of holding additional charge as D (F).

Board Meetings Procedure

The Board meets regularly and is responsible

The Company Secretary in consultation with the for the proper direction and management of the
Chairman cum Managing Director sends a Company.
written notice of each Board meeting to each Loan & Advances given to Directors :
Director. The Board agenda is invariably There is no special loan or advance given to
circulated to the Directors in advance.
Functional Directors. Normal employees
The members of the Board have access to
relevant information of the Company and are
free to recommend inclusion of any matter in
the agenda for discussion. In case of need, the
senior management is invited to attend the
Board Meetings to provide additional inputs
relating to the items being discussed and / or
to give Presentation on each item to the Board.

benefits towards advances like festival advance

and House Building advance are extended to
them.
Boards Responsibilities
The mandate to the Board is to oversee the
Companys strategic direction, review and
monitor corporate performance, ensure
43

regulatory compliance and safeguard the

interests of the shareholders. The Board has
reserved certain items of governance for its
review, including the approval of annual and
interim financial results, disposals and joint
ventures, as well as material agreements, major
capital expenditure, major sales contracts,
employees remuneration and perquisites,
manpower plans and long term plans for its
review and approval.

occupied by them in other companies.

Quarterly report on Statutory Compliance.

Information relating to major legal

disputes.

Arbitration cases.

Short term Investment of surplus funds.

Significant Capital Investment proposals.

Changes in significant accounting policies

and practices and reasons for the same.

Information placed before the Board of

Directors:

The information under the following heads is

usually presented to the Board of Directors of
the Company either as part of the agenda
papers or is tabled / presented during the
course of the Board meeting:

44

Compliance with the provisions and

guidelines under Companies Act, 1956 or
Companies Act, 2013.
Any other information required to be
presented to the Board either for
information or approval.

Annual operating plans and budgets and Role of Independent Directors

any updates.
The Independent Directors play an important
Capital budgets and any updates.
role in deliberations of the Board and Board
Quarterly, Half-yearly & Annually results Sub-Committee Meetings and bring to the
for the company and its operating divisions Company their expertise in various fields viz.
Engineering, Finance, Management, Law and
or business segments.
Public Policy. The Board has established various
Minutes of meetings of Audit Committee
Sub-Committees such as Audit Committee and
and other Sub-Committees of the Board.
CSR Committee etc with adequate
Minutes of Board Meetings of subsidiary representation of Independent Directors in line
companies.
with the requirements of Department of Public
Details of any Joint Venture or R&D project Enterprises (DPE) Guidelines on Corporate
or technical collaboration agreement Governance for CPSEs. The Company has also
requiring approval of Board of Directors. constituted a Remuneration Committee on
Performance Related Pay headed by an
Sale of material, nature of investments, Independent Director.
subsidiaries, assets, which is not in normal
Consequent upon adoption of the DPE
course of business.
Guidelines on Corporate Social Responsibility
Action Taken Report on matters desired by for CPSEs as CSR Policy, the Board constituted
the Board.
the Board Level Apex Committee for Corporate
Disclosure of Interest by Directors about Social Responsibility for proper and periodic
directorships and Committee positions monitoring of CSR activities.

Meetings of Independent Directors

Terms & Conditions of Board Members &

A Board Sub Committee has been set up Retirement Policy
comprising all the Independent Directors viz. The appointment of Chairman cum Managing
Committee of Independent Directors (COID) Director and Functional Directors of the
which facilitates the Independent Directors to company is made by the President of India from
meet and discuss on issues without the time to time on such terms and conditions like
presence of Whole time (Executive) Directors or remuneration payable, tenure etc.
Management Personnel. During such meetings Two Part-time Official Directors i.e Govt
the Independent Directors discuss matters Directors viz. Joint Secretary (Steel) and
pertaining to the affairs of the company. For this Additional Secretary & Financial Advisor,
year, one such meeting was held on Ministry of Steel are nominated by the
25th Sept 2013.
Government of India on the Board of RINL and
Independence Certificate:

they continue to hold such office at the

Independent Directors provided Certificate of discretion of the Government of India.
Independence, which is introduced in line with Code of Conduct
Office Memorandum issued by DPE on Roles and As part of RINLs persisting endeavor to set a
responsibilities of Non-Official Directors on the high standard of conduct for its employees and
Boards of CPSEs dated 28th Dec, 2012. All the its Board members, a Code of Business
Independent Directors of the Company furnish Conduct and Ethics has been laid down for all
a declaration annually that they comply with the Board Members and Senior Management
conditions of their being Independent.
personnel. The same is placed at Companys
Selection of New Directors

website.

As per Articles of Association of RINL, the

President of India through Ministry of Steel
appoints the Chairman & Managing Director,
Functional Directors, Part-time Official
Directors (i.e Government Nominees) and Parttime Non-official Directors (i.e Independent
Directors) on the Board of RINL. The
Independent Directors are selected/ approved
by the Ministry of Steel in consultation with the
Search Committee of the Department of Public
Enterprises which maintains a panel of IAS
(Retd), Ex CMDs, Professors and Professionals
such as Chartered Accountants etc., having wide
experience in the fields of Management,
Finance, Engineering, Administration and
Industry.

The Code encompasses:

General Moral Imperatives;

Specific Professional Responsibilities; and

Additional Duties / Imperatives for Board

Members and Senior Management
Personnel.

Senior Management personnel and Board

Members declare affirmation, annually that they
do read and follow the code.
Board Charter
For the purpose of clearly defining the roles and
responsibilities of the Board members, the
Board has laid down a Board Charter for the
Board of Directors of the Company. The Charter
also articulates Companys Corporate
Governance objectives and approach.
45

The details of remuneration & sitting fee paid to Directors during the financial year 2013-14:
(Value in )
S.
No.

Name

Basic
Salary
benefits

Allowances
and Perquisites
& other
retirement

Sitting
Fees

Total

1.
2.

P. Madhusudan*
A.P.Choudhary*

998426.00
772480.00

1711234
2961461

Nil
Nil

2709660
3733941

3.
4.
5.
6.

Umesh Chandra*
T.K.Chand*
Y.R.Reddy*
N.S. Rao*

1025740.00
946330.00
900000.00
526330.00

1719703
1617898
1501821
4121464

Nil
Nil
Nil
Nil

2745443
2564228
2401821
4647794

7.

P.C.Mohapatra*

403686.00

646962

Nil

Remarks

Superannuated
on 31-12-2013

8.
9.
10.
11.
12.
13.
14.
15.
16.
17.

E.K. Bharat Bhushan**

V.K.Thakral**
Lokesh Chandra**
A.P.V.N.Sarma***
Swashpawan Singh***
Dr. U.D.Choubey***
H.S.Chahar***
Ashhok Kumar Jain***
V.S.Jain***
Prof. Sushil***

Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil

Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil

Nil
Nil
Nil
1,60,000
4,20,000
1,60,000
3,80,000
4,40,000
3,00,000
3,00,000

Superannuated
on 31-10-2013
1050648 Director(Projects)
w.e.f 1-11-2013
Nil
Nil
Nil
1,60,000
4,20,000
1,60,000
3,80,000
4,40,000
3,00,000
3,00,000

18.

Prof. S.K.Garg***

Nil

Nil

2,80,000

2,80,000

(*)Whole Time Directors (WTD)/ Functional Directors. No remuneration is paid to the PartDirectors:
time official Directors by the Company.
The Whole Time Directors/ Functional Directors
are appointed in terms of the Articles of
Association of the Company by the President of
India, in consultation with the Chairman of the
Company for a period of 5 years or till the age of
Superannuation or until further orders, whichever
is earlier. The appointment may, however, be
terminated by either side on three months notice
or on payment of three months salary in lieu
thereof.
(**) Part-time official Directors/Govt Directors
Part-time official Directors/Government Directors
are nominated by Government of India as
46

(***) Part-time non-official Directors

(Independent Directors)
The part-time non-official directors (i.e.
Independent Directors) are appointed by
Government of India as Director for a period of 3
years from the date of assumption of charge or
until further orders, whichever is earlier. Sitting
fees is only paid by the Company to the part-time
non-official directors @ Rs 20,000/- for each
Board/Board Sub-Committee Meetings attended
to by them.

Role of the Company Secretary in overall

governance process:

are members and the details are given

below.

The Company Secretary plays a key role in

ensuring that the Board procedures are followed
and regularly reviewed. The Company Secretary
ensures that all relevant information, details and
documents are made available to the Directors
and Senior Management for effective decisionmaking at the Meetings. The Company Secretary
is primarily responsible to ensure compliance with
applicable statutory requirements under the
Companies Act, 1956 or any enactment thereof
and is the interface between the Management and
Regulatory Authorities for governance matters. All
the Directors of the Company and Senior
Management have access to the advice and
services of the Company Secretary.

Name

No.of Meetings
Attended
Held

Attended

Shri A.K. Jain

Chairman

Prof. S.K. Garg

Member
(from 12.11.2013)

Member
(from 12.11.2013)

Dr.U.D.Choubey Member
DG (SCOPE)
(upto 10.10.2013)

Shri H.S.Chahar Member

IAS (Retd.)
(upto 30.09.2013)

Prof. Sushil

Director (Finance) is a Permanent invitee and

Head of Internal Audit & Stock Verification
Department is an Invitee for the meetings
of the Audit Committee.

Board Sub Committees

Procedure at Board Sub Committee Meetings

Status in the
Committee

II.

The guidelines relating to Board meetings are

mostly followed for all Board Sub-committee
meetings. Minutes of the proceedings of the
Committee meetings are placed before the Board
meetings for perusal and noting. Company
Secretary is also the Secretary to the respective
Board Sub-Committees.

Meetings and attendance of Audit

Committee during the year:
During the financial year ended 31st March,
2014, Six Audit Committee Meetings were
held on following dates,
Meeting No

Date

Meeting No

Date

39

16.04.2013

42

30.08.2013

Audit Committee

40

31.05.2013

43

13.11.2013

I.

41

21.06.2013

44

16.12.2013

Composition of the Audit Committee as on

31.3.2014 is as follows:
The Audit Committee was initially
constituted during the year 2006-07 in line
with the O.M.No.18(8)/2005-GM, dated
16th June, 2005 issued by Department of
Public Enterprises (DPE), Govt. of India.
Later in terms of the Corporate Governance
guidelines issued by DPE in May 2010 and
consequent upon conversion into a Public
Limited Company, the Audit Committee was
reconstituted as per Section 292A of the
Companies Act, 1956. Audit Committee thus
constituted continues to discharge its
functions.

The minutes of all the Audit Committee

meetings are put up to Board in their
subsequent meetings as an item of
information. The Chairman of the Audit
Committee also appraises the Board about
the observations, if any, of the Audit
Committee during the Board Meeting.
The Other Corporate Governance related Board
Sub-Committees (BSCs) (other than Audit
Committee) are given below:
1)

Remuneration Committee.

2)

CSR & Sustainability

Committee.

As on 31st March, 2014 the Audit Committee 3)

comprise three Independent Directors, of 4)
which one is the Chairman and the other two

Development

Human Resources Committee.

Shareholders/Investors
Committee.

Grievance
47

5)

Committee of Management (COM) for Share (iii) AGM of the current year
Transfers.
Financial
Date
Time

6)

Independent Ethics Committee.

7)

Committee of Independent Directors. (3rd

Meeting held on 25/09/2013)

Venue

Year
2013-14

29/09/14 15.00Hrs Admn Building,

RINL/VSP,
Visakhapatnam

The other BSCs have been constituted for specific

purpose on need basis and as per decisions of (iv) EGM and Special Resolution passed
the Board of Directors from time to time and the
One Extraordinary General Meeting (EGM)
same are given below:
was held on 14th August, 2013 to pass Special
Resolution for alteration of Articles of
1)
High Power Steering Committee (HPSC).
Association of the company.
2)
Committee of Management (COM).
Disclosures
3)
Committee on Marketing (BSCOM).
Disclosures on materially significant related
4)
Committee for Raw Material Security & Joint party transactions that may have potential
Ventures and Acquisitions (Including Fly Ash/ conflict with the interests of the Company at
Slag Based Cement Plant).
large:
5)
Initial Public Offer (IPO) Committee.
There were no transactions by the company of
material nature with Promoters, Directors or the
Management, their subsidiaries or relatives etc.
that may have potential conflict with the interest
of Company at large.

6)

Grievance Redressal Committee.

7)

BSC on Steel Processing Units.

8)

Committee on Gangavaram Port Limited.

9)

Steering Committee.

(i)

Date, time and venue of the last three AGMs Vigil Mechanism (Whistle Blower) Policy of RINL:

Details of non-compliance by the Company,

10) Committee for Award of Contracts for penalties, strictures imposed on the company by
Operations and Expansion of Projects any statutory authority, on any matter related to
any guidelines issued by Government, during the
(CACOEP).
last three years:
11) Committee on Broadening the Base of Coal
There were no instances of non-compliance by the
Suppliers.
Company, Penalties, Strictures imposed on the
12) Committee on Transit and Handling Losses Company by any Statutory Authority, on any matter
of Raw Materials.
related to any guidelines issued by Government,
during last three years.
General Body Meetings
Financial
Year

(ii)

Date

Time

Venue

2010-11

27.09.2011 10.00 hrs Admn Building,

2011-12

20.09.2012 17.00 hrs

RINL/VSP,

2012-13

21.09.2013 16.00hrs

Visakhapatnam

The Company has since put in place a Vigil

Mechanism comprising Whistle Blower Policy.
Details of compliance with the requirements of
Corporate Governance Guidelines:

The Company has complied with the requirement

Whether any special resolutions passed in of DPE Guidelines on Corporate Governance.
the previous three AGMs
Details of Presidential Directives issued by the
No.

Central Government and their compliance during

the year and also in the last three years:
No Presidential Directives were issued by the
Central Government during the last three years.

48

Items of expenditure debited in books of Expenses incurred which are personal in nature
accounts, which are not for the purposes of the and incurred for the Board of Directors and Top
business:
Management:
There were no items of expenditure debited in There were no expenses incurred which are
books of accounts, which are not for the purposes personal in nature and incurred for the Board of
of the business.
Directors and Top Management.
Details of Administrative and Office Expenses as a percentage of total expenses vis-a-vis financial
expenses and reasons for increase/decrease :
Crores
Details

2013-14

2012-13

Administrative and
Office expenses

79.08

71.92

Financial expenses

338.12

359.25

Total expenses (as per P&L A/c) 11769.40

Administrative expenses as a
(%) of Total expenses (13)

Administrative Vs Financial
expenses (%)(12)

0.67

Increase/Decrease over
2012-13 & Reasons therefor

12358.44
0.58

Increase (Due to increase

in Security expenses)

23.39

20.02

Note: Previous years figures have been regrouped as per Revised Schedule VI Format.
Means of communication

Whether it also displays official news releases.

Quarterly Results

The Company also displays official news releases

RINL is an unlisted company and hence quarterly on its website (www.vizagsteel.com).
results of the Company are not published in Shareholders information:
Newspapers. However, the same are being put up Company Registration Details
to the Administrative Ministry (MoS) and Audit
The Company is registered in the State of Andhra
Committee respectively.
Pradesh, India. The Corporate Identity Number
Newspapers wherein results normally published (CIN) allotted to the Company by the Ministry of
A brief on Annual Results are covered by Corporate Affairs is U27109AP 1982GOI003404.
Newspapers viz. The Hindu, Eenadu (local Telugu Financial Year:
paper) etc.
The financial year of the company is from
Any website, where displayed
01st April to 31st March.
Annual results as part of the Annual Reports for Payment of Dividend:
the last three years are made available on the
website of the Company (www.vizagsteel.com). The record date for the payment of Dividend is
Website is designed to open the documents easily AGM Date. Dividend for the financial year was
and quickly. Hindi version of the Annual report is recommended by the Board of Directors of the
st
also placed on the website along with English Company in their 281 Meeting held on July 03,
2014 @ 10% of Profit After Tax for the Equity
version.
Shareholders as on the date of AGM and as per
49

terms to Preference Shareholders. Further the RINL has following Subsidiaries as on

final dividend for the year will be declared by the 31st March, 2014
shareholders in the ensuing AGM.
(a) Eastern Investments Limited (EIL)
Stock Code: ISIN-INE508F01013
(b) Orissa Mineral Development Corporation
Registrar and Share Transfer Agent:

Limited (OMDC)

KARVY COMPUTER SHARE PRIVATE LIMITED

Plot No. 17-24, Vithal Rao Nagar,
Madhapur, Hyderabad-500081,
State of Telangana, India
Telephone: +91 40 4465 5000,
Facsimile: +91 40 2343 1551,
Email: murali.m@karvy.com
Website: www. karisma.karvy.com
Contact Person: Shri M. Muralikrishna,
SEBI Registration Number: INR000000221
Share Transfer System

(c)

Bisra Stone Lime Company Limited (BSLC)

(OMDC & BSLC are the Subsidiaries of EIL)

RINL has following Joint Venture Companies as

on 31st March, 2014
(a)

RINMOIL Ferro Alloys Private Limited

(b)

International Coal Ventures Pvt. Limited

Address for correspondence:

Shri P Mohan Rao,
General Manager (Company Affairs) and
Company Secretary & Compliance Officer,
D-12, D Block, 2nd Floor, Administrative Building,
Rashtriya Ispat Nigam Limited (RINL),
Visakhapatnam Steel Plant (VSP),
Visakhapatnam - 530 031.
E mail: pmr.cs@vizagsteel.com,
Website: www.vizagsteel.com

Entire share transfer activities under physical

segment are being carried out by Karvy Computer
Share Private Limited. The share transfer system
consists of activities like receipt of shares along
with transfer deed from transferees, its
verification, preparation of Memorandum of
transfers, etc. Share transfers are approved by
Audit Qualifications
Sub-Committee of the Board for Allotment and
The Company is glad to mention that it secured
Post-Allotment activities of RINLs Securities.
NIL Comments from CAG of India for the last eight
Equity Shareholding pattern as on 31.03.2014
consecutive years since 2007-08.
S.No.

Name of the Shareholder

Number of Equity
Shares

Shri P. Madhusudan

300

Shri Umesh Chandra

100

Shri T.K. Chand

100

Shri P.C. Mohapatra

100

Shri V.K.Thakral

100

Shri Lokesh Chandra

100

The President of India

(Acting through MoS)

488,98,45,400

Total

488,98,46,200

Training of Board Members

The Company has been sponsoring the
independent directors/ newly inducted directors
for training programs conducted by SCOPE/ DPE/
IPE. Further, during the Board / Sub-committee
Meetings, detailed presentations are also made
by Senior Executives/Professionals / Consultants
facilitating the Board Members to know the details
of the company performance, expansion plans and
projects.
Certification of Financial Statements by the CEO
and CFO of the Company

* Shareholders from Sl.No 1 to 6 are holding the

shares as a nominee of the President of India. The CEO (i.e. CMD of the Company) and CFO (i.e.
Director (Finance)) of the company have provided
The Company is a wholly owned Government
the Certification regarding the financial
company. All the shares are held in the name of
statements for the year 2013-14, as reviewed by
the President of India and his nominees.
Audit Committee. (Copy enclosed) (Annexure- III).
50

Annexure - III

b~y Fo uT uubzg
(o N N GN)
Rashtriya Ispat Nigam Limited
(A Government of India Undertaking)

Chief Executive Officer (CEO) and

Chief Financial Officer (CFO) Certification
I, P. Madhusudan, Chairman-Cum-Managing Director and holding additional charge as Director (Finance)
of RINL, to the best of my knowledge and belief, certify that:
1.

We have reviewed the Balance Sheet and Statement of Profit & Loss, significant accounting policies and Notes to
Accounts, as well as the Cash Flow Statement for the year ended March 31,2014;

2.

Based on our knowledge and information, these statements do not contain any materially untrue statement or omit
any material fact or contain statements that might be misleading or omit to the state a material fact necessary to
make the statements made, in light of the circumstances under which such statements were made, not misleading
with respect to the statements made;

3.

Based on our knowledge and information statements present true and fair view of the Company's affairs and are in
compliance with the existing Accounting Standards and/or applicable Laws and Regulations;

4.

To the best of our knowledge and belief, no transaction was entered into by the Company during the year which was
fraudulent, illegal or violative of the Company's Code(s) of Conduct;

5.

We are responsible for establishing and maintaining internal controls for financial reporting and that we have evaluated
the effectiveness of the internal control systems of the company pertaining to financial reporting and we have disclosed
to the auditors and the Audit Committee, deficiencies in the design or operation of such internal controls, if any, of
which we are aware and the steps we have taken or propose to take to rectify these deficiencies;

6.

We have indicated to the Company's Auditors and Audit committee of RINL's Board of directors
(a) Significant changes, if any, in internal controls over financial reporting during the year;
(b) Significant changes, if any in Accounting Policies during the year and that the same have been disclosed in the
notes to the financial statements;
(c) Instances of significant fraud of which we have become aware and the involvement therein, if any, of the management
or an employee having significant role in the Company's internal control system over financial reporting,

7.

We further declare that all Board Members and Senior Managerial personnel have affirmed compliance with the
Code of Conduct for the year ended 31.3.2014.

P Madhusudan
Chairman-cum-Managing Director
Holding additional charge as Director (Finance)
Place: Visakhapatnam
Date : 31-07-2014

Note : Shri P. Madhusudan, elevated from Director (Finance) to CMD w.e.f. 01/01/2014 and is also holding
additional charge as Director (Finance) as on date.

uty Nz zT N To z, N G uV ut \zT @
Please send you reply to :
Web Site : www.vizagsteel.com

uQcm Fo , uQcm - 530 031

Visakhapatnam Steel Plant, Visakhapatnam - 530 031
Regd. Office : Rashtriya Ispat Nigam Limited (A Government of India Undertaking)
Visakhapatnam Steel Plant, Administrative Building, Visakhapatnam - 530 031, INDIA

\yNwo N|: b~y Fo uT uubzg, (o N N GN)

uQc Fo uz\, uN , uQcm - 530 031, o
51

Annexure - IV

P.N. Rao & Co.,

Company Secretaries

Phone : 0891-2751934
e-mail: pnraoandco@gmail.com

To
The Members,
Rashtriya Ispat Nigam Ltd.,
Visakhapatnam Steel Plant,
Administrative Building,
Visakhapatnam - 530 031

CERTIFICATE ON COMPLIANCE OF GUIDELINES ON

CORPORATE GOVERNANCE
1.

We have examined the compliance of conditions of Corporate Governance by Rashtriya Ispat

Nigam Limited, a Govt. of India Undertaking (Unlisted Public Company) for the financial year
ended 31st March 2014 pursuant to the Guidelines on Corporate Governance issued by the
Ministry of Heavy Industries and Public Enterprises, Department of Public Enterprises vide
their O.M. No. 18(8)/2005-GM, dated 14th May, 2010 which have become mandatory for all
CPSEs. We have obtained all the information and explanations which to the best of our
knowledge and belief were necessary for the purposes of certification.

The Compliance of Guidelines on Corporate Governance is the responsibility of the

Management. Our examination was limited to the procedures and implementation thereof,
adopted by the Company for ensuring the compliance of the Guidelines on Corporate
Governance. It is neither an audit nor an expression of opinion on financial statements of the
company. Further, this certificate is neither an assurance as to the future viability of the
Company nor the efficiency or effectiveness with which the Management has conducted the
affairs of the Company

3.

In our opinion and to the best of our information and according to the explanations given to us
and the disclosures made in the Directors' Report, we hereby certify that the Company has
complied with the conditions of Corporate Governance as stipulated in the above mentioned
OM.
For P.N.Rao & Co.
Company Secretaries

Visakhapatnam
Dt : 31-07-2014

(P. NARASINGA RAO)

Proprietor CP No.2552

Flat No. 102,1 Floor, Door No. 9-42-19/1, Swamy Prasad Vinayagar, Balajinagar, Siripuram,
Adjacent to State Bank of India Administrative Office Main Entrance, Visakhapatnam-530 003
52

Annexure - V

P.N. Rao & Co.,

Company Secretaries

Phone : 0891-2751934
e-mail: pnraoandco@gmail.com

To
The Members,
Rashtriya Ispat Nigam Ltd.,
Visakhapatnam Steel Plant,
Administrative Building,
Visakhapatnam - 530 031

SECRETARIAL COMPLIANCE REPORT

FOR THE FINANCIAL YEAR ENDED 31st MARCH 2014
We have examined the Registers, Records, Books and Papers of Rashtriya Ispat Nigam Limited, a
Govt. of India Undertaking (unlisted Company) as required to be maintained under the Companies,
Act, 1956 (Act) and the rules made there under, and also the provisions contained in the Memorandum and Articles of Association of the Company for the financial year ended on 31s1 March 2014. In
our opinion and to the best of our information and according to the examination carried out by us and
explanations furnished to us by the Company and its Officers, we certify that in
respect of the aforesaid financial year:
1.

Category of Company
The Company is a "Government Company" as defined under Section 617 of the Companies Act,
1956. It is an unlisted Public Limited company as on 31st March, 2014.

2.

Maintenance of Statutory Records

The Company has kept and maintained all Registers as required to be maintained under the
provisions of the Act and the rules made thereunder and all entries have been duly recorded.

3.

Filing of Statutory Returns/Forms

The Company has duly filed the requisite Forms and Returns with the Registrar of Companies,
Andhra Pradesh, under the Act and the rules made there under.

Flat No. 102,1 Floor, Door No. 9-42-19/1, Swamy Prasad Vinayagar, Balajinagar, Siripuram,
Adjacent to State Bank of India Administrative Office Main Entrance, Visakhapatnam-530 003
53

P.N. Rao & Co.,

Company Secretaries
4.

Phone : 0891-2751934
e-mail: pnraoandco@gmail.com

Composition of Board
The Company has a full time Chairman-cum-Managing Director, Two Govt. Directors, Five Functional Directors and Eight Independent Directors as on 31s1 March, 2014 thereby fulfilling the
requirement to have 1/3 of Board strength as Independent Directors as per the DPE Guidelines
and also 1/2 of the Board strength in terms of listing requirement for proceeding with the proposed Initial Public Offer (EPO).

5.

Board Meetings
The Board of Directors have duly met eleven (11) times on 16-04-2013, 25-04-2013, 31-05-2013,
21-06-2013, 28-06-2013, 05-09-2013, 26-09-2013, 18-11-2013, 21-11-2013, 17-12-2013 and 2401-2014 respectively in respect of which meetings, proper notices were given and the proceedings were properly recorded and signed in the minutes book maintained for the puipose.

6.

Audit Committee
The Board has constituted an Audit Committee as required under Corporate Governance Guidelines of DPE/provisions of the Companies Act, 1956. During the year, Six Meetings of the Audit
Committee were held on 16-04- 2013, 31-05-2013, 21-06-2013, 30-08-2013, 13-11-2013 and
16-12-2013 respectively in respect of which meetings, notices were given and the proceedings
were properly recorded and signed in the minutes book maintained for the purpose.

7.

Disclosure of Interest
The Directors have disclosed their interest in other companies to the Board of Directors pursuant to the provisions of the Act and the rules made thereunder.

8.

Annual General Meeting

The Annual General Meeting of the Company for the financial year ended on 31st March, 2013
was held on 21st September, 2013, The Resolutions passed thereat were duly recorded in minutes book maintained for the purpose.

9.

Extraordinary General Meeting

One Extraordinary General Meeting was held on 14th August, 2013 during the financial year and
the resolutions passed thereon were duly filed with ROC, Andhra Pradesh as per the provisions
of Companies Act, 1956.

Flat No. 102,1 Floor, Door No. 9-42-19/1, Swamy Prasad Vinayagar, Balajinagar, Siripuram,
Adjacent to State Bank of India Administrative Office Main Entrance, Visakhapatnam-530 003
54

P.N. Rao & Co.,

Company Secretaries
10.

Phone : 0891-2751934
e-mail: pnraoandco@gmail.com

Appointment and changes amongst Directors

The Board of Directors of the Company is duly constituted and the appointment of Directors
including Chairman cum Managing Director, Whole time Directors and other Directors have
been duly made in accordance with the provisions of Articles of Association of the Company
read with relevant provisions of the Act.

11.

Directors' Report
The Company has duly complied with the provisions of Section 217 of the Act, 1956.

12.

Acceptance of Public Deposits

The Company has not invited/accepted any deposits falling within the purview of Section 58A of
the Act during the financial year.

13.

Appointment of Cost Auditors

The Company has appointed Cost Auditors under Section 233 B of the Act for the FY 2013-14, for
its Power / Steel Plant operations and duly complied with the provisions of the Act.

14.

Provident Fund
The Company has deposited both employees' and employer's contribution with the VSP Employees Contributory Provident Fund Trust within the prescribed time pursuant to Section 418
of the Act.

15.

Loans to Directors
The Company being a "Government Company" as on 31st March, 2014, the provisions of Section
295 of the Act are not applicable.

16.

Prosecution / Penalties
There was no prosecution initiated against or show cause notice received by the Company and
no fines or penalties or any other punishment was imposed on the Company, its Directors and
Officers during the financial year for offences under the Act.

For P.N.Rao & Co.

Company Secretaries

Visakhapatnam
Dt : 31-07-2014

(P. NARASINGA RAO)

Proprietor CP No.2552

Flat No. 102,1 Floor, Door No. 9-42-19/1, Swamy Prasad Vinayagar, Balajinagar, Siripuram,
Adjacent to State Bank of India Administrative Office Main Entrance, Visakhapatnam-530 003
55

Annexure - VI
M/s Tej Raj & Pal
Chartered Accountants
31-30-38 / 10, 3rd Floor, Sai Sampath Enclave,
Narayana Street, Daba Gardens
Visakhapatnam - 530020 (A.P)

M/s Rao & Kumar

Chartered Accountants
10-50-19/4,
Soudamani, Siripuram Jn.
Visakhapatnam - 530003 (A.P)

INDEPENDENT AUDITORS REPORT

TO THE MEMBERS OF RASHTRIYA ISPAT NIGAM LIMITED
Report on the Financial Statements
We have audited the accompanying financial statements of Rashtriya Ispat Nigam Limited (the
Company) which comprise the balance sheet as at 31st March 2014, the statement of profit and loss
and the cash flow statement for the year then ended and a summary of significant accounting policies
and other explanatory information.
Managements Responsibility for the Financial Statements
Management is responsible for the preparation of these financial statements that give a true and fair
view of the financial position, financial performance and cash flows of the Company in accordance
with the Accounting Standards referred to in sub-section (3C) of section 211 of the Companies Act,
1956 (the Act) read with the General Circular 15/2013 dtd. 13th Sept 2013 of the Ministry of Corporate
Affairs in respect of Section - 133 of the Companies Act 2013. This responsibility includes the design,
implementation and maintenance of internal control relevant to the preparation and presentation of
the financial statements that give a true and fair view and are free from material misstatement,
whether due to fraud or error.
Auditors Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit. We
conducted our audit in accordance with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with ethical requirements and plan
and perform the audit to obtain reasonable assurance about whether the financial statements are
free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures
in the financial statements. The procedures selected depend on the auditors judgment, including the
assessment of the risks of material misstatement of the financial statements, whether due to fraud
or error. In making those risk assessments, the auditor considers internal control relevant to the
Companys preparation and fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion
on the effectiveness of the entitys internal control. An audit also includes evaluating the
appropriateness of accounting policies used and the reasonableness of the accounting estimates
made by management, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our audit opinion.

56

Opinion
In our opinion and to the best of our information and according to the explanations given to us, the
financial statements give the information required by the Act in the manner so required and give a
true and fair view in conformity with the accounting principles generally accepted in India:
(i)

In the case of the balance sheet, of the state of affairs of the Company as at 31st March 2014;

(ii)

In the case of the statement of profit and loss, of the profit for the year ended on that date; and

(iii)

In the case of the cash flow statement, of the cash flows for the year ended on that date.

Report on Other Legal and Regulatory Requirements

1.

As required by the Companies (Auditors Report) Order, 2003 (the Order), as amended, issued
by the Central Government of India in terms of sub-section (4A) of section 227 of the Act, we give
in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the Order.

2.

As required by section 227(3) of the Act, we report that:

a. We have obtained all the information and explanations which to the best of our knowledge
and belief were necessary for the purpose of our audit;
b. In our opinion proper books of account as required by law have been kept by the Company so
far as appears from our examination of those books;
c. The Balance Sheet, Statement of Profit and Loss and Cash Flow Statement dealt with by this
Report are in agreement with the books of account;
d. In our opinion, the Balance Sheet, Statement of Profit and Loss and Cash Flow Statement
comply with the Accounting Standards referred to in subsection (3C) of section 211 of the
Companies Act, 1956 read with the General Circular 15/2013 dtd. 13th Sept 2013 of the
Ministry of Corporate Affairs in respect of Section - 133 of the Companies Act 2013; and
e. The provisions of Section 274 (1)(g) are not applicable to the Government Companies vide
notification no. G.S.R. 829 (E) dated 21-10-2003 as declared by the Central Government.

For M/s Tej Raj & Pal

Chartered Accountants
Regn.No(F.R.N)304124E

CA B. GangaRaju
Partner
M.No:7605

For M/s Rao & Kumar

Chartered Accountants
Regn. No (F.R.N) 003089S

CA V.V. Ram Mohan

Partner
M.No:18788

Place : Visakhapatnam
Date : 04.07.2014
57

M/s Tej Raj & Pal

Chartered Accountants
31-30-38 / 10, 3rd Floor, Sai Sampath Enclave,
Narayana Street, Daba Gardens
Visakhapatnam - 530020 (A.P)

M/s Rao & Kumar

Chartered Accountants
10-50-19/4,
Soudamani, Siripuram Jn.
Visakhapatnam - 530003 (A.P)

ANNEXURE TO AUDITORS REPORT

Annexure referred to in Paragraph 1 of Report on Other Legal and Regulatory Requirements in our
report of even date
1.

Fixed Assets
(a) The Company has maintained proper records showing full particulars including quantative
details of fixed assets.
(b) All assets have not been physically verified by the management during the year but there is
a regular programme of verification which in our opinion is reasonable having regard to the
size of the company and the nature of its assets. No material discrepancies were noticed on
such verification.
(c)

2.

No substantial part of fixed assets of the company has been disposed off during the year.

Physical verification and reconciliation of Inventories

(a) Quantities of Closing stock of finished / semi-finished goods have been adopted as per book
balances after duly adjusting for shortages/excesses identified on physical verification at
anytime during the year. In respect of stores and spares, company has a regular programme
of verification in a phased manner. In our opinion the frequency of verification is reasonable.
(b) The procedure for physical verification of inventory followed by the management is reasonable
and adequate in relation to the size of the company and the nature of its business.
(c)

3.

The Company is maintaining proper records of inventory. We are informed that no material
discrepancies have been noticed on physical verification.

Loans and Advances to parties covered in register maintained under section 301 of the Act
The Company had neither granted nor taken any loans, secured or unsecured, to / from companies
/ firms or other parties covered in the register maintained under Section 301 of the Act. In view of
this, clauses (b), (c), (d) and (e) of paragraph 4(iii) of the order are not applicable.

4.

Internal Control Procedure

In our opinion and according to the information and explanations given to us, having regard to the
explanation that some of the items purchased are of special nature and suitable alternative sources
do not exist for obtaining comparable quotations, there are adequate internal control procedures
commensurate with the size of the company and the nature of its business with regard to purchase

58

of inventory, fixed assets and with regard to the sale of goods and services. During the course of
our audit, we have not noticed continuing failure to correct any major weaknesses in the internal
control system.
5.

Transactions to be entered into Register maintained under Section 301 of the Act
According to the information and explanations given to us, there are no transactions that need to
be entered into the register maintained under section 301 of the Companies Act, 1956. As there
are no such transactions, clause (b) of paragraph 4(v) is not applicable.

6.

Acceptance of Deposits from Public

The Company had not accepted any deposits from the public. As such, the directives issued by
the Reserve Bank of India and the provisions of Section 58A & 58AA or any other relevant provisions
of the Act and the rules framed there under are not applicable.

7.

Internal Audit System

In our opinion, the company has an Internal Audit system commensurate with the size and nature
of its business.

8.

Maintenance of Cost Records

We have broadly reviewed the records maintained by the company pursuant to the rules made by
the Central Government for the maintenance of Cost Records under Section 209(1)(d) of the
Companies Act, 1956 and are of the opinion that prima-facie, the prescribed accounts and records
have been made and maintained in respect of the applicable products. Cost Audit in respect of
specified products has been ordered by the Central Government vide order No. 52/26 /CAB-2010
dated 6-11-2012 of CAB, Ministry of Corporate Affairs. We are informed that the compilation of
Cost Accounting records for the current year is in progress and hence we have not carried a
detailed examination of the records with a view to determine whether they are accurate and
complete.

9.

Payments and remittances to Statutory Authorities

(a) According to the records of the Company, the company is generally regular in depositing
with appropriate authorities, undisputed statutory dues including Provident Fund, Income
Tax, Sales Tax, Investor Protection Fund, Wealth Tax, Service Tax, Customs Duty, Excise
Duty, Cess and other material Statutory dues applicable to it.
(b) According to the information and explanations given to us, there are no undisputed statutory
dues outstanding for a period of more than six months from the date they became payable
as per books of accounts as at 31st March 2014.
(c)

According to the explanations given to us, Company is not required to make any contribution
under the Employees State Insurance Act.

(d) According to the information and explanations given to us, as at the end of the financial year
the disputed dues of Income Tax, Sales Tax, Service Tax, Customs Duty, Excise Duty and
Cess which have not been deposited is as follows:

59

Name of the
Statute

Nature of dues

Finance Act,
Customs &
Excise Act

Excise duty,
Service Tax and
Cenvat

-do-

-do-

CESTAT

-do-

-do-

Honorable High Court of Andhra

Pradesh

-do-

Customs

CESTAT

-do-

Customs

Honorable High Court of Andhra

Pradesh

0.36

-do-

STAT

4.34

-do-

Honorable High Court of Andhra

Pradesh

The Andhra
Pradesh General
Sales Tax Act &
C S T Act
-doUP Trade Tax Act

ST Appeal
(Kanpur Branch)

Bihar VAT Act

Orissa Sales Tax Act

VAT
Sales Tax

Forum where dispute is pending

Commissioner(Appeals)

Amount
( in Crs.)
3.98

120.03
1.71
26.89

1675.08

Tribunal Bench, Agra

0.10

Joint Commissioner Taxes (JCT)

0.05

Addl. Commissioner, Sales Tax, Orissa

0.26

10. Accumulated Losses

The Company did not have any accumulated loss at the end of the financial year. The Company
has not incurred cash losses in this financial year covered by our audit and also in the immediately
preceding financial year.
11. Repayment of dues to Banks or Financial Institutions
In our opinion and according to the records produced to us, the Company has not defaulted in
repayment of its dues to any Financial Institution or Bank during the year.
12. Loan and Advances on the basis of security by way of pledge of Shares etc.
According to the information and explanations given to us, the Company has not granted any
loans and advances on the basis of security by way of pledge of shares, debentures and other
securities.
13. Chit Fund or Nidhi / Mutual Benefit Fund / Society
In our opinion, the Company is not a chit fund or a nidhi /mutual benefit fund / society. Therefore,
the provisions of clause 4(xiii) of the Order are not applicable to the Company.

60

14. Trading in Shares etc.

In our opinion, the company is not dealing in or trading in shares, securities, debentures and
other investments. Accordingly, the provisions of clause 4(xiv) of the Order are not applicable to
the Company.
15. Guarantee for Loan taken by others
We are informed that the Company has not given any Guarantee for loans taken by others from
Banks or financial institutions.
16. Application of Term Loans
According to information and explanation given to us, during the year the Company applied term
loan for the purpose for which the term loans were obtained.
17. Usage of Short Term and Long Term Funds
According to the information and explanations given to us and on an overall examination of the
balance sheet of the Company, we report that no funds raised on short-term basis have been
used for long-term investment and vice versa.
18. Preferential Allotment of Shares
According to the information and explanations given to us, the Company has not made any
preferential allotment of shares to parties and companies covered in the register maintained
under Section 301 of the Act, during the year.
19. Issue of Debentures
According to the information and explanations given to us, the Company had not issued debentures
during the year.
20. End use of money raised by Public Issue
According to the information and explanations given to us, during the year the company has not
raised any money by public issues.
21. Frauds
According to the information and explanations given to us, no fraud on or by the Company has
been noticed or reported during the course of our audit.

For M/s Tej Raj & Pal

Chartered Accountants
Regn.No(F.R.N)304124E

CA B. Ganga Raju
Partner
M.No:7605

For M/s Rao & Kumar

Chartered Accountants
Regn. No (F.R.N) 003089S

CA V.V. Ram Mohan

Partner
M.No:18788

Place : Visakhapatnam
Date : 04.07.2014
61

Annexure - VII

oy zQ os zQyq uT
utzN umu[N zQyq L
tz t zQyq zg| N N|, {tt
INDIAN AUDIT AND ACCOUNTS DEPARTMENT
OFFICE OF THE PRINCIPAL DIRECTOR OF
COMMERCIAL AUDIT AND EX-OFFICO MEMBER,
AUDIT BOARD, HYDERABAD.

PDCA/A/c/Desk/2013-14/RINL/1.01/188
utN :
Date : 22 July 2014
To
The Chairman-cum-Managing Director,
Rashtriya Ispat Nigam Limited,
Visakhapatnam
Sub: - Comments of the C&AG of India under Section 619(4) of the Companies Act, 1956 on
the accounts of Rashtriya Ispat Nigam Limited, Visakhapatnam for the year ended on 31
March 2014
Sir,
I forward herewith the Nil Comments Certificate of Comptroller and Auditor General
of India under Section 619(4) of the Companies Act, 1956 on the accounts of Rashtriya Ispat
Nigam Limited, Visakhapatnam for the year ended on 31 March 2014.
2.
The date of placing the comments along with Annual Accounts and Auditors Report
before the shareholders of the Company may please be intimated and a copy of the
proceedings of the meeting may be furnished.
3.
The date of forwarding the Annual Report and Annual Accounts of the Company
together with Auditors Report and comments of the Comptroller and Auditor General of
India to the Central Government for being placed before the Parliament may please be
intimated.
4.
Ten copies of the Annual Report for the year 2013-14 may please be furnished in due
course.
The receipt of this letter along with the enclosures may please be acknowledged.
Encl:- As above
Yours faithfully

(Arabinda Das)
Principal Director
- 500 004
A.G.s Office Complex, Saifabad, Hyderabad - 500 004
e-mail : mabhyderabad@cag.gov.in

zQN N N| u, {t, {tt

62

Grams : DIRCOMIT Fax : 040-23231318

Phone : 23233315, 23230415

COMMENTS OF THE COMPTROLLER AND AUDITOR GENERAL OF INDIA UNDER SECTION 619(4) OF THE
COMPANIES ACT, 1956 ON THE ACCOUNTS OF RASHTRIYA ISPAT NIGAM LIMITED, VISAKHAPATNAM FOR
THE YEAR ENDED 31 MARCH 2014
The preparation of financial statements of Rashtriya Ispat Nigam Limited, Visakhapatnam for the year ended
on 31 March 2014 in accordance with the financial reporting framework prescribed under the Companies Act,
1956 is the responsibility of the management of the company. The Statutory Auditor appointed by the
Comptroller and Auditor General of India under Section 619(2) of the Companies Act, 1956 is responsible for
expressing opinion on these financial statements under Section 227 of the Companies Act, 1956 based on the
independent audit in accordance with the Standards on Auditing prescribed by their professional body, the
Institute of Chartered Accountants of India. This is stated to have been done by them vide their Audit Report
dated 04 July 2014.
I, on the behalf of the Comptroller and Auditor General of India, have conducted a supplementary audit under
Section 619(3) (b) of the Companies Act, 1956 of the financial statements of Rashtriya Ispat Nigam Limited,
Visakhapatnam for the year ended on 31 March 2014. This supplementary audit has been carried out
independently without access to the working papers of the Statutory Auditors and is limited primarily to
inquiries of the Statutory Auditor and company personnel and a selective examination of some of the accounting
records. On the basis of my audit, nothing significant has come to my knowledge, which would give rise to any
comment upon or supplement to Statutory Auditors report under Section 619(4) of the
Companies Act, 1956.
For and on the behalf of the
Comptroller and Auditor General of India

Place: Hyderabad
Date: 22 July 2014

(Arabinda Das)
Principal Director of Commercial Audit &
Ex-Officio Member, Audit Board,
Hyderabad

63

Annexure - VIII
STATEMENT PURSUANT TO SECTION 212 (1) (e) OF
THE COMPANIES ACT 1956,
RELATING TO SUBSIDIARY COMPANIES FOR THE YEAR 2013-14
Eastern
Investments
Limited (EIL)

PARTICULARS

1.

Financial year of the subsidiary ended on

2.

The extent of holding companys interest in the

st
subsidiary at the end of 31 March 2014
a) Number of Fully Paid up Equity shares of
10 each (Nos)
b) Extent of Holding (%)

The Net aggregate amount of the profit / (loss)

of the subsidiary company not dealt with in the
Companys accounts so far as it concerns the
members of the holding company: ( Cr)
a) For the financial year ended
st
on 31 March 2014
b) For all the previous financial years of the
subsidiary since it became subsidiary
The Net aggregate amount of the profit/(loss) of
the subsidiary company so far as its profits are
dealt with in holding companys accounts: ( Cr)
a) For the financial year ended
st
on 31 March 2014
b) For all the previous financial years of the
subsidiary since it became subsidiary.

st

31 March 2014

Bisra Stone
Orissa MinLime Comeral Development Corpo- pany Limited
(Subsidiary
ration (Subof EIL)*
sidiary of EIL)*
st

st

31 March 2014 31 March 2014

7,36,638
51.00

3,00,089
50.01

4,38,34,782 #
50.22 @

0.05

3.13

(9.43)

2.38

9.06

(13.20)

0.11

Nil

Nil

0.61

Nil

Nil

$
$

Notes:
* As per Section 4(1)( c) of companies Act 1956 a subsidiary of a subsidiary of holding company is a
subsidiary of holding company.
# Out of the above 4,36,51,855 equity shares are held by EIL and 1,82,927 are held by RINL.
@ Extent of holding through EIL is 50.01% and directly is 0.21%.
$ Net aggregate amount of profit/loss includes the proportionate profit relating to direct holding of
RINL.
For and on behalf of Board of Directors

(T.V.S. Krishna Kumar)

Director (Finance)

(P. Madhusudan)
Chairman-Cum-Managing Director
(P. Mohan Rao)
Company Secretary

Place: Visakhapatnam
th
Date: 28 September, 2014.
64

Annexure A
Information required under Section 217(1)(e) of the Companies Act, 1956 read with the Companies
(Disclosures of Particulars in the Report of Board of Directors) Rules, 1988.

Energy Conservation measures taken during the Year 2013-14

A. Energy Management:

Commissioning of 14 MW TRT of BF 3

RINL-VSP is the first Indian Steel plant to Commissioning of Waste Heat Recovery system
be certified for ISO: 50001 Energy Management
in stoves of BF-3 for preheating of fuel gas for
System.
stoves heating. This system will reduce fuel
gas loss to atmosphere by recovering waste
Energy Consumption (Gcal/tCS ) & CO 2
heat and preheats combustion air and fuel gas.
Emissions(Tons/tCS):
Year

Sp. Energy Consumption

(Gcal/tCS)

CO2 emissions
(Tons/tCS)

2012-13

6.31

2.66

2013-14

6.19

2.66

Conduct of mandatory energy audit as per Energy

Conservation Act-2001 by accredited energy audit
agency to improve the energy efficiency.
2. (i) Waste Heat Recovery Systems (2013-14)

The following measures have been taken

during the year 2013-14 for conservation of
energy:

Energy Saving Units Energy Boiler Coal Reduction

facility
Recovered Saved
of CO2
(tonnes) emission
(tonnes)

Reduction of BF gas bleeding from 2.95 % to

1.96 % by taking up proactive measures and
optimizing distribution through Supervisory
Control and Data Acquisition system (SCADA).

Total volume MN
of LD Gas
Cum
recovered at
LD Gas
recovery plant

307.559

171003

269614

Replacement of Air Recuperator in F/C-1 of

LMMM.

Total power
MWH
generated at
Back Pressure
Turbine Station
(BPTS)

193331

154665

243855

Total power
MWh
generated at
Gas Expansion
Turbine
Station (GETs)

41671

33337

52561

Commissioning of Waste Heat Recovery system

at Sinter Machine-3 for pre heating of
combustion air to ignition furnace and
supplying hot air to extended hood of Sinter
Machine-3.
Commissioning of Energy Efficient furnace with
energy efficient burners in Sinter Machine-3.

(MNcum-Million Normal Cubic Meters,

20.6 MW waste heat recovery system on sinter MWH-Mega Watt Hours)
straight-line cooler of sinter machines 1 &2
(ii)Usage of By-product gases in Thermal
was made ready for synchronization.
Power Plant (2013-14)
B. Other Initiatives
1. Energy Conservation plans under progress:
Installation of Pulverized coal injection in Blast
Furnace-1
Installing Energy Conservation facilities in
expansion such as Pulverized coal injection in
BF 3

Name of
Fuel used
in TPP

Units

Value

Boiler Reduction
Coal
of CO2
Saved
emission
(tonnes) (tonnes)

Coke Oven
Gas

MNcum 498.685

706138

1113344

BF gas

MNcum 2582.921

611291

963803
65

3. Clean Development Mechanism:

Obtained Host country Approval (HCA) for the

following projects:
As a part of registration, Top pressure Recovery
Turbine (TRT) of BF-3 has been submitted to
Pulverized Coal Injection (PCI) in Blast
UNFCCC for registration.
Furnace- 2
As a part of Validation,

Waste Heat Recovery (WHR) from Wire Rod

Mill-2

Draft Validation Report (DVR) was obtained

from DOE for the following projects.
4. Energy Management System:

Power Generation from Cooling of coke in Coke

RINL was certified for BS EN: 16001 Energy
Dry Cooling Plant of Coke Oven Battery -4.
Management System during Dec2010 which was
Waste heat recovery from Circular cooler of valid upto Dec2013. The Energy management
system has been upgraded from System to ISO:
Sinter Plant-2.
50001 Energy Management System during the
120 MW BF gas based Captive Power Plant. month of Aug2012. Hence, Recertification audit
Deviation to Methodology (ACM 0012, for ISO: 50001 was conducted during the month
version 4) in respect of Waste Heat Recovery of Oct2013. BVCI recertified RINL for ISO: 50001,
system of Sinter Circular Cooler of Sinter which would be valid for a period of three years
Plant 3 was sought from CDM Executive from Dec13 onwards.
Board (EB).
5. NEDO Model Project on Sinter Cooler Waste
Heat Recovery:
Designated Operational Entity (DOE) was
engaged for the following projects.
RINL
signed
Memorandum
of
Pulverized Coal Injection (PCI) in Blast Understanding with NEDO of Japan to install
20.6 MW waste heat recovery system on Sinter
Furnace-3.
Straight-line cooler of sinter machine. Equipment
Pulverized Coal Injection (PCI) in Blast
erection was completed for all packages and the
Furnace-1
plant was made ready for synchronization in
Installation of Energy Efficient Air separation Mar14.
unit-4&5.

66

FORM-A
A. Power and fuel Consumption 2013-14
1)

2)

3)

4)

Electricity:
a) Purchased (Import from AP TRANSCO)
b) Gross exported
c) Net Imported
Total cost
Cost/unit
d) Own generation-Through Steam Turbine/Generator
Total cost
Cost/unit
-Through Back pressure Turbine Station
-Through Gas Expansion Turbine Station
Coal consumption
a)Boiler coal (indegenous)
Total cost
Cost/unit
b)Imported coking coal
Total cost
Cost/unit
c)Imported Soft Coking Coal
Total cost
Cost/unit
d)US Coal & Canada coal
Total cost
Cost/unit
e)Indegenous Medium coking coal
Total cost
Cost/unit
Furnace oil consumption
Total cost
Cost/unit
HSD Consumption
Total cost
Cost/unit

Unit

2013-14

2012-13

MWH
MWH
MWH
Rs Crores
Rs/unit
MWH
Rs Crores
Rs/unit
MWH
MWH

342044
1112
340932
267.73
7853
1681798
927.34
5514
193331
41671

318276
1522
316754
280.80
8865
1613665
866.54
5370
178846
53675

t
Rs Crores
Rs/unit
t
Rs Crores
Rs/unit
t
Rs Crores
Rs/unit
t
Rs Crores
Rs/unit
t
Rs Crores
Rs/unit
Kl
Rs Crores
Rs/unit
Kl
Rs Crores

1345160
294.86
2192
2622497
2619.61
9989
500049
415.94
8318
438467
449.47
10251
399153
270.87
6786
3250.91
16.38
50396
2665.99
16.13

1270444
257.52
2027
2570245
2973.52
11569
402620
388.89
9659
475987
490.46
10304
496590
319.41
6432
570.67
2.85
49870
2573.30
15.58

Rs/unit

60502

60530

B. Consumption per unit of production

Item
Imported Electricity
Boiler coal
Boiler coal (Indegenous)
Coking Coal
Imported coking coal
Imported Soft Coking Coal
US Coal
Indegenous Medium Coking Coal
Furnace oil
HSD
Crude Steel Production

Unit

Per tonne of Crude

steel production

Per tonne of Crude

steel production

KWH

106.5

103.1

Kg

420.1

413.7

Kg
Kg
Kg
Kg
liters
liters
tons

819.1
156.2
136.9
124.7
1.02
0.83
3201685.00

836.9
131.1
155.0
161.7
0.19
0.84
3071232.00
67

FORM B
FORM FOR DISCLOSURE OF PARTICULARS
WITH RESPECT TO TECHNOLOGY ABSORPTION
Research & Development (R & D)
Specific areas in which R&D carried out by the
company
Research & Development in RINL is mainly
pursuing in the areas of process improvement,
environment protection, waste management,
cost reduction, new product development and
new technology development
Benefits derived as a result of the above R&D
(a) Optimization of design and operating
parameters like wire speed, bath super
heat, steel grades on Calcium recovery and
its efficacy for inclusion modification
Visakhapatnam Steel Plant is practicing
Aluminium and Silicon deoxidation of steel.
Alumina is formed during the process
creating clogging problems during casting.
A joint research project is taken up with IIT,
Kharagpur to mitigate the problem.
Addition of calcium in the form of Ca-Si and
Ca-Fe resulted in modification of inclusions
thereby reducing clogging tendency.
(b) Effect of iron ore micro-fines on sintering
process

(c) Feasibility studies of enrichment of BF gas

for enhancement of calorific value
Blast Furnace (BF) gas has 18-20% of
Carbon Monoxide and its calorific value is
700-850kcal/Nm3. Studies are underway to
increase the calorific value by reducing the
contents of CO 2 and N 2 in gas mixture.
CGCRI, Kolkata is the research partner.
(d) Development of thermo-mechanically
treated bars having improved seismic
resistance
Thermo mechanical treated bars are used
in RCC (Reinforced Concrete Cement) in
construction. Their Seismic resistance is
insufficient to withstand earthquakes of
even medium intensity. It is proposed to
increase its seismic resistance through
alteration in chemistry and cooling
parameters.
(e) Studies and development of Carbon dioxide
(CO2) sequestration technique using LD
Converter slag (steel slag) to control the
Green House Effect of Carbon dioxide
CO2 emissions and generation of LD slag
are some of the major causes of concern
for steel industry. Sequestration of CO 2
making use of the calcium component of
LD slag is under study. NIOT, Chennai is the
collaborative Research Partner.

Increased levels of production of iron lead

to more mining resulting in increase in Future plan of action
generation of micro fines. These micro fines
Discussions are in progress with The
which are generated, have high iron content
Energy and Research Institute, New Delhi;
and are left unutilised. Attempts are being
Tata Research Development and Design
made to maximize use of iron ore microCentre, Pune; MEFOS, Sweden and Battelle
fines in sintering process. A collaboration
Memorial Institute, Pune to pursue joint
project is taken up with IMMT,
research projects in the areas of Iron and
Bhubaneswar for studying the effect of
Steel, Energy, Environment and Water.
micro-fines on sintering process.
68

A green building with state of art

project with National Metallurgical
infrastructural facilities, laboratories and
Laboratory, Jamshedpur on Development
sheds for pilot plants etc., is planned for
of Amorphous Electrical Steels at a total
R&D Centre, as envisaged in the Roadmap
expenditure of 40 Crores is in progress.
of R&D at an estimated cost of Expenditure on R&D : (For 2013-14)
153.7 Crores.
Capital
: Nil
An investment of 136 Crores was approved
Revenue/ recurring
: 50.27Cr
by Board for development of CRGO steels
in the collaborative project with Tata Steel,
Total
: 50.27Cr
NML and MoS.
Total R&D expenditure as a percentage of
Proposal to take up a collaborative research

total turnover: 0.37

69

70

71

72

BALANCE SHEET AS AT 31st MARCH 2014

Crs
Particulars

Note
No.

As at
31st March 2014

As at
31st March 2013

B 01.00
B 02.00

5739.85
6400.89

6346.82
6130.50

B 03.00
B 04.00
B 05.00
B 06.00

1203.53
419.01
165.56
531.43

1241.56
229.21
105.00
414.77

B 07.00
B 08.00
B 09.00
B 10.00

3739.93
829.93
5484.05
157.65

3658.44
737.94
5615.19
173.10

24671.83

24652.52

EQUITY AND LIABILITIES

SHAREHOLDERS FUNDS
Share Capital
Reserves and Surplus
NON CURRENT LIABILITES
Long-term borrowings
Deferred Tax Liabilities (Net)
Other Long-term Liabilites
Long-term provisions
CURRENT LIABILITES
Short-term borrowings
Trade payables
Other current liabilities
Short-term provisions
Total
ASSETS
NON CURRENT ASSETS
Fixed Assets
Tangible assets
Intangible assets
Capital work-in-progress
Intangible assets under development
Non Current Investments
Long-term Loans and Advances
Other Non Current assets

B 11.00
B 11.00
B 12.00

4530.03
2.75
10669.47
30.11

15232.36

3787.07
2.74
9965.24
22.20

13777.25

B 13.00
B 14.00
B 15.00

362.53
616.05
60.23

362.58
498.36
36.58

B 16.00
B 17.00
B 18.00
B 19.00
B 20.00

3863.04
803.65
175.89
3461.35
96.73

3828.60
1009.65
1625.02
3417.75
96.73

24671.83

24652.52

CURRENT ASSETS
Inventories
Trade receivables
Cash and Bank balances
Short-term Loans and Advances
Other Current assets
Total
Significant Accounting Policies [A] and
Notes to Accounts [B 01.00 to B 31.00] annexed form part of the Accounts
For and on behalf of Board of Directors

(P. Madhusudan)
Chairman-cum-Managing Director

(P. Mohan Rao)

Company Secretary

As per our report of even date

(Umesh Chandra)
Director (Operations)

For M/s Rao & Kumar

Chartered Accountants
Regn. No (F.R.N) 003089S

For M/s Tej Raj & Pal

Chartered Accountants
Regn.No(F.R.N)304124E

CA V.V. Ram Mohan

Partner
M.No:18788

CA B. Ganga Raju
Partner
M.No:7605

Place : Visakhapatnam
Date : 04.07.2014
73

STATEMENT OF PROFIT AND LOSS FOR THE YEAR ENDED 31st MARCH 2014
Crs
Note
No.

Particulars
INCOME
Revenue From Operations
Less: Excise duty
Other Income
Total Revenue

B 21.00

B 23.00
B 24.00
B 25.00
B 26.00
B 11.01
B 27.00

Basic and Diluted Earnings Per Share (in )(Face Value 10 per share) B 29.00
Significant Accounting Policies [A] and
Notes to Accounts [B 01.00 to B 31.00] annexed form part of the Accounts
For and on behalf of Board of Directors

Place : Visakhapatnam
Date : 04.07.2014

74

12,028.33
306.99
12,335.32

For the year ended

31st March, 2013
13,565.28
1 454.59

116.76
(116.76)

0.00
(7.10)
189.80
366.45

12,110.69
455.42
12 566.11

8,098.66
(303.74)
1,469.07
359.25
186.88
2,296.75
12,106.87
52.17
12 054.70
511.41
15.06
526.47
0.00
526.47
0.00
526.47

7,025.82
18.65
1,751.10
338.12
271.48
2,441.45
11,846.62
58.57
11,788.05
547.27
1.88
549.15
0.00
549.15
0.00
549.15

B 28.00

Profit / (loss) for the period

(P. Mohan Rao)

Company Secretary

13,431.48
1,403.15

B 22.00

EXPENSES
Cost of materials consumed
Changes in Inventories of Semi-finished/Finished goods
Employees' benefits
Finance Costs
Depreciation and Amortisation
Other expenses
Total Expenses
Less: Inter account adjustments-raw material mining cost
Net Expenses
Profit for the year before Prior period Items (PPI)
Prior period items - Net (Debit) / Credit
Profit after PPI and Before Exceptional & Extraordinary Items and Tax
Exceptional Items
Profit Before Extraordinary Items and Tax
Extraordinary items
Profit Before Tax
Tax Expense
Current Tax (MAT)
Less: MAT Credit Entitlement
Earlier years adjustments
Deferred Tax
Profit /(loss) for the period from Continuing Operations
Profit /(loss) for the period from Discontinuing Operations
Tax Expense of Discontinuing Operations
Profit /(loss) for the period from Discontinuing Operations (after Tax)

(P. Madhusudan)
Chairman-cum-Managing Director

For the year ended

31st March, 2014

103.98
(96.88)

7.10
(1.69)
168.23
352.83

0.00
0.00

0.00
0.00
0.00

0.00

366.45

352.83

0.62

0.48

As per our report of even date

(Umesh Chandra)
Director (Operations)

For M/s Rao & Kumar

Chartered Accountants
Regn. No (F.R.N) 003089S

For M/s Tej Raj & Pal

Chartered Accountants
Regn.No(F.R.N)304124E

CA V.V. Ram Mohan

Partner
M.No:18788

CA B. Ganga Raju
Partner
M.No:7605

CASH FLOW STATEMENT FOR THE YEAR ENDED 31st MARCH 2014
Crs
Particulars

For the year ended

31st March, 2014

For the year ended

31st March, 2013

549.15

526.47

271.48
338.12
33.84
(0.07)
(0.56)
(120.01)
(0.11)
1071.84

187.68
359.25
(17.20)
1.01
(0.45)
(151.26)
(0.13)
905.37

A. Cash flow from Operating activities

Net Profit / (Loss) before taxation
Add / (Less) Adjustments for:
Depreciation
Interest and Finance Charges
Provisions
Unrealised Foreign Exchange (Gain) /Loss
(Profit)/Loss on sale of fixed assets
Interest Income
Dividend Income
Operating Profit Before working capital changes
Adjustments for:
(Increase) / Decrease in Inventories
(Increase) / Decrease in Trade Receivables
(Increase) / Decrease in Loans & Advances
(Increase) / Decrease in Other Non-current assets
(Increase) / Decrease in Other current assets
Increase / (Decrease) in Liabilities
Cash generated from Operations
Less: Income Tax paid
Net cash from / (used in) Operating activities

(34.44)
206.00
(130.45)
(23.65)
(1.68)
183.13

(425.49)
(582.50)
(212.87)
(26.24)
96.65
639.53

(103.46)
1167.29

(143.60)
250.83

B. Cash flow from Investing activities

Purchase of Fixed Assets
Proceeds from / (Purchase of ) Investments
Dividend received
Proceeds from sale of Fixed Assets
Interest received
Net cash from / (used in) Investing activities

(1664.91)
0.05
0.11
0.77
125.57
(1538.41)

(1351.96)
152.59
0.13
0.59
206.42
(992.23)

C. Cash flow from Financing activities

Proceeds from / (Repayment of) Long-term loans
Proceeds from / (Repayment of) Short-term loans
Proceeds from Prime Ministers Award Funds
Proceeds from / (Repayment of) Share capital
Interest and Finance charges
Dividend Paid
Dividend Tax Paid
Net proceeds from other Bank balances
Net cash from / (used in) Financing activities

(38.03)
81.49
0.56
(606.97)
(396.16)
(101.64)
(17.26)
0.00
(1078.01)

1241.56
1083.30
1.44
(1380.50)
(333.03)
(270.79)
(43.91)
5.00
303.08

Net Increase / (decrease) in Cash and Cash equivalents (A+B+C)

(1449.13)

(438.32)

1625.02
175.89

2063.34
1625.02

Opening Balance of Cash and Cash equivalents

Closing Balance of Cash and Cash equivalents
(Represented by Cash and Bank Balances - Note B 18.00 )

1. This statement has been prepared under the Indirect Method as set out in the Accounting Standard 3.
2. Significant Accounting Policies and Notes to Accounts form part of the Cash Flow Statement.
3. Previous years figures have been rearranged / regrouped wherever necessary to conform to current years classification.
For and on behalf of Board of Directors
As per our report of even date

(P. Madhusudan)
Chairman-cum-Managing Director

(Umesh Chandra)
Director (Operations)

For M/s Rao & Kumar

Chartered Accountants
Regn. No (F.R.N) 003089S

For M/s Tej Raj & Pal

Chartered Accountants
Regn.No(F.R.N)304124E

CA V.V. Ram Mohan

Partner
M.No:18788

CA B. Ganga Raju
Partner
M.No:7605

(P. Mohan Rao)

Company Secretary
Place : Visakhapatnam
Date : 04.07.2014
75

A. SIGNIFICANT ACCOUNTING POLICIES

1.0 GENERAL
1.1

Financial Statements are prepared under the historical cost convention in accordance with fundamental accounting
assumptions and Generally Accepted Accounting Principles (GAAP) in India and the relevant provisions of the
Companies Act, 1956 including Accounting Standards notified there under.

1.2

The preparation of financial statements in conformity with Generally Accepted Accounting prinicples require
estimates and assumptions to be made that affect the reported amounts of assets and liabilities and disclosure of
contingent liabilities on the date of financial statements and the reported amounts of revenues and expenses
during the reporting Period. Actual results could differ from these estimates and differences between actual
results and estimates are recognised in the periods in which the results are known/materialised.

2.0 FIXED ASSETS

2.1

Fixed assets are stated at historical cost less depreciation.

2.2

Expenditure attributable / relating to construction, to the extent not directly identifiable to any specific Plant Unit,
is kept under Expenditure During Construction for allocation to Fixed Assets and is grouped under Capital Workin- Progress.

3.0 INVESTMENTS
3.1

Current investments are carried at lower of cost and fair value.

3.2

Long-term investments are carried at cost. Diminution in value, other than temporary, is provided for.

4.0 INVENTORIES
4.1

Inventories are valued at lower of cost and net realizable value.

4.2

The basis of determining cost is:

4.2.1 Finished / Semi-finished goods - Weighted Average cost.

4.2.2 Raw material, Stores & Spares, Loose Tools - Monthly weighted average cost and those in transit at cost.
4.3

Obsolete / Surplus / Non-moving inventory are adequately provided for.

5.0 REVENUE RECOGNITION

5.1

Sales are recognized when all significant risks and rewards of ownership have been transferred to the buyer.

5.2

Export incentives under various schemes are recognized as Income on certainty of realisation.

6.0 CLAIMS
6.1

Claims against outside agencies are accounted on certainty of realisation.

7.0 FOREIGN CURRENCY TRANSACTIONS

7.1

Foreign currency monetary items are recorded at the closing rate.

7.2

Exchange differences arising on account of settlement / conversion of foreign currency monetary items are
recognised as expense or income in the Period in which they arise.

8.0 EMPLOYEE BENEFITS

8.1

76

Actuarial gains and losses on defined benefit plans are recognised during the Year,

9.0 DEPRECIATION AND AMORTISATION

9.1

Depreciation is provided on straight line method (SLM), up to full value of the cost of asset over the specified period
derived in accordance with the provisions of Schedule XIV of the Companies Act, 1956, except the following:

9.1.1 Assets costing up to 5000/- are fully depreciated in the year of capitalisation.
9.1.2 Depreciation on the following categories of assets is provided up to full value of the cost of asset on SLM over the
period of their useful life based on the Managements estimate given in brackets.
Photo Copiers & Fax Machines, Telecom Equipment (5 years); Cranes, Slag Pot Carriers, Audio & Visual Equipment
(10 years); Other Office Equipment, Earth Moving Equipment, Forklift Trucks, Air Conditioners, Refrigerators,
Water Coolers, Air Coolers, Freezers (7 years); Cars (6 years); Safety Equipment, Other light vehicles (8 years);
Computers [including system Software] (4 years); Coke Ovens & Coal Chemical Plant (15 years).
9.2

Amortisation of Intangible Assets is accounted as follows:

9.2.1 Mining lease rights are amortised over the period of lease.
9.2.2 Software which is not an integral part of related hardware, is treated as intangible asset and amortised over a
period of 4 years or its licence period, whichever is less.
10.0 BORROWING COSTS
10.1 Borrowing costs incurred for obtaining assets which take more than 12 months to get ready for its intended use are
capitalised to the respective assets wherever the costs are directly attributable to such assets and in other cases by
applying weighted average cost of borrowings to the expenditure on such assets.
10.2 Other borrowing costs are treated as expense for the year.
11.0 PRIOR PERIOD ITEMS
11.1 Items of Income / Expenditure which arise in the current period as a result of errors or omissions in the preparation
of Financial Statements of one or more prior Years, exceeding 5,00,000/- in value, in each case are treated as
prior period items.

77

B. NOTES FORMING PART OF THE ACCOUNTS FOR THE YEAR ENDED 31st MARCH, 2014
Note 01.00 : Share Capital
Particulars

As at
31st March, 2014

Crs
As at
31st March, 2013

4890.00
3110.00
8000.00

4890.00
3110.00
8000.00

4889.85

4889.85

850.00

1456.97

5739.85

6346.82

AUTHORISED
4,890,000,000 (Previous Year 4,890,000,000) Equity Shares of 10 each
3,110,000,000 (Previous Year 3,110,000,000) Preference Shares of 10 each
Total
ISSUED, SUBSCRIBED AND FULLY PAID-UP
4,889,846,200 (Previous Year 4,889,846,200) Equity Shares of 10 each.
850,000,000 (Previous Year 1,456,970,000) 7 % Non-Cumulative redeemable Preference
Shares of 10 each redeemable at par, as under
550,000,000 during 2014-15
300,000,000 during 2015-16
Total
01.01 : Statement of Reconciliation of Issued, Subscribed and Fully paid-up Share capital
7% Non-Cumulative Redeemable
Preference Shares

Equity Shares

Particulars
Number
Shares outstanding as at the beginning
of the year

Face Value( )

Crs

Number

Face Value( )

Crs

4,889,846,200
(48,898,462)

10
(1000)

4889.85
(4889.85)

1,456,970,000
(28,374,700)

10
(1000)

1456.97
(2837.47)

(4,889,846,200)

(10)

(4889.85)

(1,652,470,000)

(10)

(1652.47)

(11,850,000)

(1000)

(1185.00)

(b) Reduction of Equity & Preference shares

of Face value of 1000 on
Sub division into Equity & Preference
shares with Face value of 10 each

(48,898,462)

(1000)

(4889.85)

(16,524,700)

(1000)

(1652.47)

(c) On Redemption of Preference shares of

Face Value of 10 each

606,970,000
(195,500,000)

10
(10)

606.97
(195.50)

4,889,846,200

10

4889.85

850,000,000

10

850.00

(4,889,846,200)

(10)

(4,889.85)

(1,456,970,000)

(10)

(1456.97)

Add : Issue of Shares

(a) Issue of Equity & Preference shares of
Face value of 10 each on
Sub division of Equity & Preference shares
with Face value of 1000
Less : Reduction of shares
(a) On Redemption of Preference shares of
Face Value of 1000 each

Shares outstanding as at the end of the year

Sub Note: Figures in the brackets are for previous year.

01.02 : Details of Shareholders holding more than 5% of Share holding as at 31.03.2014
Type of Shares

Name of the Shareholder

Equity

President of India

Preference

President of India

Sub Note: Figures in the brackets are for previous year.

01.03 :Company does not have any Holding Company as at 31.03.2014.

78

% of Shares held
100%
(100%)
100%
(100%)

No of Shares Held
4,889,846,200
(4,889,846,200)
850,000,000
(1,456,970,000)

Note 02.00 : Reserves and Surplus

Crs
As at
31st March, 2013

As at
31st March, 2014

Particulars
Capital Redemption Reserve
Amount as per last Balance Sheet
Add: Amount transferred during the year

1480.50
606.97

2087.47

100.00
1380.50

1480.50

Other Reserves
Reserve for Redeeming Preference Share Capital
Amount as per last Balance Sheet
Less: Transfer to Capital Redemption Reserve

1456.97
606.97

850.00

2837.47
1380.50

1456.97

5.45
0.56

6.01

4.01
1.44

5.45

Prime Ministers Trophy Award Fund *

Amount as per last Balance Sheet
Add: Amounts received / Interest accrued during the year
Surplus
Amount as per last Balance Sheet
Add: Surplus as per Statement of Profit and Loss
366.45
Adjustment of Proposed Dividend on Redeemed Preference shares
10.05
Adjustment of Tax on Proposed Dividend on Redeemed Preference shares
1.71
Adjustment of Dividend Tax credit on dividend received from EIL (subsidiary) 0.02
Less:Appropriations
Interim Dividend
58.00
Proposed Dividend (Final)
34.65
Tax on Interim Dividend
9.86
Tax on Proposed Dividend (Final)
5.89

2990.49

3187.58

378.23

352.83
2.91
0.47
0.02

356.23

108.40

82.88
53.69
13.45
9.12

159.14

Tot
al
otal

3457.41

3187.58
6130.50

6400.89

* The fund has been created out of Award conferred by the Prime Minister of India as best Integrated Steel Plant in India and the
earnings from the fund are utilised for the purposes intended for.
02.01: Proposed Dividend and Dividend per Share
Particulars

2012-13

2013-14

Preference Dividend
Interim Dividend
Proposed Dividend (Final)
Number of Preference Shares
Dividend per share

Crs
Crs
No.of shares

55.00
1.00

Equity Dividend
Interim Dividend
Proposed Dividend (Final)
Number of Equity Shares
Dividend per share

Crs
Crs
No.of shares

3.00
33.65

56.00
800,000,000
0.70

36.65
4,889,846,200
0.07

72.85
28.44

10.03
25.25

101.29
1,421,970,000
0.71

35.28
4,889,846,200
0.07

Sub Note: Preference shares outstanding as at 31-05-2014.

79

Note 03.00 : Long-term Borrowings

As at
31st March, 2014

Crs
As at
31st March, 2013

1203.53

1241.56

1203.53

1241.56

03.01 : Loans guaranteed by Directors and Others

0.00

0.00

03.02 : Default in repayment of loans and interest

0.00

0.00

As at
31st March, 204

Crs
As at
31st March, 2013

(A)

479.92
479.92

280.75
280.75

(B)

0.00
30.21
30.70
60.91

2.03
28.86
20.65
51.54

(A) - (B)

419.01

229.21

As at
31st March, 2014

Crs
As at
31st March, 2013

0.00

12.14

81.17
84.39
165.56

64.25
28.61
105.00

As at
31st March, 2014

Crs
As at
31st March, 2013

118.06
201.64
163.36
35.76
9.52

107.79
163.55
102.80
36.74
0.93

3.09
531.43

2.96
414.77

Particulars
Term Loans
From Banks
Secured Loans
(Secured by hypothecation of Fixed Assets)

Note 04.00 : Deferred Tax liabilities (Net)

Particulars
Deferred Tax Liabilities
Difference between book and tax depreciation
Sub-Total
Deferred Tax Assets
Provision for Gratuity
Provision for Doubtful Debts, Advances,Claims,Interest
Other Deferred Tax Assets
Sub-Total
Net Deferred tax Liability
Note 05.00 : Other Long-Term liabilities
Particulars
Trade Payables
Others
Security deposits
Other Liabilities
Total
Note 06.00 : Long-term Provisions
Particulars
Provision for Employee Benefits
Compensated Absences
Post-retirement Benefits
Employee Family Benefit Scheme
Long Service Awards
Leave Travel Concession
Others
Mines Closure
Total

06.01 : Disclosures of Provisions required by Accounting Standard (AS) 29 Provisions, Contingent Liabilities and Contingent Assets :
Particulars
Provision for Mines Closure Expenditure

80

Opening Balance
as at 01.04.2013

Additions during
the year

Utilised during
the year

Closing Balance
as at 31.03.2014

2.96

0.13

0.00

3.09

Crs

Note 07.00 : Short-term Borrowings

Particulars
Loans repayable on demand
From Banks
Secured Loans
Working Capital Borrowings
(Secured by hypothecation of Current Assets)
Unsecured Loans
Working Capital Borrowings
Short-term Loans
Short-term Foreign currency facilities
Other Loans
Unsecured
Commercial Papers

Crs
As at
31st March, 2013

As at
31st March, 2014

586.22

589.44
229.63
487.31
2433.55

3150.49

203.80
0.00
2520.84

2724.64

0.00

347.58

3739.93

3658.44

07.01 : Loans guaranteed by Directors and Others

0.00

0.00

07.02 : Default in repayment of loans and interest

0.00

0.00

Total

Note 08.00 : Trade Payables

As at
31st March, 2014

Crs
As at
31st March, 2013

MSME
Others

60.32
769.61

54.73
683.21

Total

829.93

737.94

Particulars

08.01 : Information relating to Supplier under the provisions of Micro,Small and Medium Enterprise Development Act, 2006.
Particulars
i)

ii)
iii)
iv)
v)

As at
31st March, 2014

The amounts due thereon remaining unpaid to any supplier as at the end of the year
Principal
Nil
Interest
Nil
Payments made beyond the appointed day and interest thereon during the year
Nil
The amount of interest due and payable for the period of delay in making payments
Nil
but with out adding the interest.
The amount of interest accrued and remaining unpaid at the end of the year
Nil
The amount of further interest remaining due and payable in the succeeding
year until the date such interest is actually paid
Not Applicable

Crs
As at
31st March, 2013

Nil
Nil
Nil
Nil
Nil
Not Applicable

81

Note 09.00 : Other Current liabilities

Particulars
Interest accrued but not due
Short-term borrowings
Income Tax
Advances from customers
Other advances
Earnest money, security & other deposits
Current Liabilities of Long-term Employee Benefits
Compensated Absences
Post-retirement Benefits
Employee family Benefit Scheme
Long Service Awards
Leave Travel Concession
Other liabilities
Sundry Creditors
Foreign Exchange Forward Contract Payables
Other Payables
Total

Crs
As at
31st March, 2013

As at
31st March, 2014
4.49
0.79

98.00
18.14
25.21
2.85
1.92
644.98
2621.18
1571.61

5.28
133.35
0.18
361.35

146.12

4837.77
5484.05

6.12
0.00

183.64
12.36
17.18
1.44
8.34
746.09
2604.02
1548.04

6.12
183.85
0.14
303.97

222.96

4898.15
5615.19

09.01 : Other Payables include net liability of 594.69 Crs (Previous Year 438.63 Crs) towards provision on account of pay revision
effective from 01.01.2007 in respect of Executive employees and w.e.f 01.01.2012 in respect of Non-Executive employees
pending finalisation of wage revision.
Note 10.00 : Short-term Provisions
Particulars
Provision for Employee Benefits
Gratuity to employees
Others
Current Income Tax
Wealth Tax
Proposed Dividend (Final)
Tax on proposed Dividend (Final)
Total

82

As at
31st March, 2014

Crs
As at
31st March, 2013

0.00

5.98

116.76
0.35
34.65
5.89
157.65

103.98
0.32
53.69
9.12
173.10

Note 11.00 : Fixed Assets

Crs
Gross Block

Particulars

As at 1st Additions &

April, 2013 adjustments

A.TANGIBLE ASSETS
Land
- Freehold (Including cost of development)
- Leasehold
Railway Lines & sidings
Roads, Bridges & Culverts
Buildings
Plant & Equipments
Furniture & Fixtures
Locomotives
Vehicles
Electrical Installations
Water Supply & Sewerage systems
Miscellaneous Assets
Total (A)
Figures for the previous year

Sales &
adjustments

As at 31st
March, 2014

55.80
1.65
60.29
161.24
1224.38
9671.44
23.76
138.84
13.16
642.11
424.66
157.45
12574.78
10380.49

(-) 0.03

22.53
31.91
16.16
801.00
1.79
1.58
3.74
65.14
86.27
6.49
1036.58
2205.38

7.33
0.08

0.01

1.96
9.38
11.09

55.77
1.65
82.82
193.15
1240.54
10465.11
25.47
140.42
16.90
707.24
510.93
161.98
13601.98
12574.78

B. INTANGIBLE ASSETS
Computer software
Mining rights
Total (B)
Figures for the previous year

7.73
5.83
13.56
13.38

0.74

0.74
0.18

0.09

0.09
0.00

8.38
5.83
14.21
13.56

TOTAL (A+B)
Figures for the previous year

12588.34
10393.87

1037.32
2205.56

9.47
11.09

13616.19
12588.34

Note 11.00 : Fixed Assets Continued

Crs
Depreciation

Particulars

Net Block

As at 1st
April, 2013

For the Year

( incl. PPA)

Sales &
adjustments

As at 31st
March, 2014

As at 31st
March, 2014

As at 31st
March, 2013

A. TANGIBLE ASSETS
Land
- Freehold (Including cost of development)
- Leasehold
0.70
Railway Lines & sidings
48.30
Roads, Bridges & Culverts
32.92
Buildings
603.87
Plant & Equipments
7336.18
Furniture & Fixtures
15.15
Locomotives
72.55
Vehicles
10.93
Electrical Installations
305.56
Water Supply & Sewerage systems
254.97
Miscellaneous Assets
106.58

0.03
1.52
3.11
35.97
201.88
0.98
4.20
1.04
21.68
11.65
11.34

7.30
0.04

0.00

1.81

0.73
49.82
36.03
639.84
7530.76
16.09
76.75
11.97
327.23
266.62
116.10

55.77
0.92
33.00
157.12
600.70
2934.35
9.38
63.67
4.93
380.01
244.31
45.88

8787.70

293.40

8596.83

201.70

9.16
10.83

8787.70

4530.03
3787.07

55.80
0.95
11.99
128.32
620.51
2335.26
8.62
66.29
2.23
336.55
169.69
50.87
3787.07
1783.65

7.05
3.77

0.44
0.29

0.09

7.40
4.06

0.98
1.77

10.82
10.19

0.73

0.09

0.63

11.46
10.82

2.75
2.74

TOTAL (A+B)

8798.52

294.13

9.25

9083.40

4532.78

Figures for the previous year

8607.02

202.33

10.83

8798.52

3789.81

Total (A)
Figures for the previous year
B. INTANGIBLE ASSETS
Computer software
Mining rights
Total (B)
Figures for the previous year

9071.94

0.68
2.06
2.74
3.19
3789.81
1786.84
83

11.01: ALLOCATION OF DEPRECIATION

Crs
As at
31st March, 2013

As at
31st March, 2014

Particulars
Current year
Prior periods
Total
11.02: Allocation of Depreciation not included above and charged to:
Expenditure During Construction

271.48
0.00
271.48

186.88
(0.80)
186.08

22.65

16.25

11.03: Land at a cost of 39.99 Crs (Previous year 39.99 Crs) is being held in the name of President of India. The Company is holding
Power of Attorney issued by Govt. of India for utilisation of the land acquired for the Project and related purposes incidental
thereto.
11.04: Land includes 367.07 acres (Previous year 367.07 acres) allotted to various agencies on lease basis.
11.05: Land includes 12.5 acres ( 0.03 Crs) whose title is under dispute.
11.06: Sale deeds in respect of the following assets are yet to be executed:
a) Stockyard at Chennai
b) i) Office building at New Delhi
ii) Office building at New Delhi
c) Office buildings at Ahmedabad
d) Residential buildings at Kolkata
e) i) Stockyard at Hyderabad
ii) Site for Liaison Office

2.37 Crs(Previous Year

1.09 Crs(Previous Year
24.44 Crs(Previous Year
0.18 Crs(Previous Year
0.95 Crs(Previous Year
0.00 Crs(Previous Year
1.30 Crs(Previous Year

2.37 Crs)
1.09 Crs)
24.44 Crs)
0.18 Crs)
0.95 Crs)
1.00 Crs)
1.30 Crs)

11.07: Fixed Assets include 1.02 Cr (Debit) [ Previous year 0.14 Cr (Debit) ] representing Net Exchange Rate Variation for the year
in respect of foreign currency liabilities with regard to acquisition of fixed assets prior to 1st April 2004.
11.08:Capital expenditure common to more than one asset are capitalised on the basis of consultants/engineers estimates.
11.09:Main plant units, including Mills, constitute Continuous process plant.
Note 12.00 : Capital Work-In-Progress
Particulars
Work-in-Progress (Including Material issued to contractors)
Coke Oven Battery-4
242.93
6.3 MT Expansion
8731.18
Others
1234.63
Less: Provision for dropped SLTM Project
Expenditure during construction awaiting allocation (Note : 12.01)
Total

84

Crs
As at
31st March, 2013

As at
31st March, 2014

208.40
8668.44
703.63

10208.74
18.27

10190.47

9580.47
18.27

9562.20

479.00

403.04

10669.47

9965.24

12.01 : Expenditure During Construction

Particulars
Opening Balance

As at
31st March, 2014

Crs
As at
31st March, 2013

403.04

354.24

(A)

Expenditure during the year:

Employees Remuneration & Benefits
Other Expenses & Provisions
Interest
Depreciation

44.06
42.66
4.73
22.65

Less :
Interest Receipts
Other Revenue

0.04
(5.82)

114.10

38.59
45.74
3.73
16.25

104.31

(5.78)

0.00
(0.53)

(0.53)

(B)

119.88

104.84

(A+B)

522.92

459.08

Less: Amount allocated to Fixed Assets

43.92

56.04

Balance carried forward to Note 12.00

479.00

403.04

Net expenditure during the year

Total

Note 13.00 : Non Current Investments

No. of fully paid-up Face Value of
Equity Shares
each Share ( )

Particulars
Traded
Investment In Equity Instruments
Quoted (A)
Subsidiary
Eastern Investments Ltd

Others
Bisra Stone Lime Company Ltd *

As at
31st March,2014

736638
(736638)

10

361.02

361.02

182927
(182927)

10

0.00

0.00

361.02 @

361.02

Total (A)
Unquoted (B)
Joint Ventures
Rinmoil Ferro Alloys Private Limited
International Coal Ventures Pvt. Ltd
Others #
Free Press House Limited $

Steelscape Consultancy Pvt. Ltd ^

Crs
As at
31st March, 2013

100000
(100000)

10

0.10

1400000
(1400000)

10

1.40

2280
(2280)

0.00

0
(50000)

10

0.00

Total (B)
Total (A+B)

0.10
1.50

1.40

1.50

0.00

0.00

0.05

0.05

1.50

1.55

362.53

362.58

Sub Note : Figures in the brackets are for previous year.

@ Aggregate Market Value as at 31st March 2014 & 31st March 2013 is not ascertainable due to non-availability of Quotes in Stock
Exchange.
* Investments amounted to

1000/-, hence rounded off to zero.

# Others include one fully paid-up Equity share of

$ Investments amounted to

100/- each in Anakapalli Rural Electric Co-operative society Limited.

2280/-, hence rounded off to zero

^ Shares were written off during the current Year

85

13.01 : Joint Venture Entities

Details of Companys share of ownership interest, assets, liabilities, income, expenses, contingent liabilities and capital
commitments in the joint venture entities, all incorporated in India, are given below:
Crs
Name of the Joint
Venture Entitity

Percentage of Companys
ownership interest

Assets

Liabilities Income

Expenditure Contingent
Liabilities

Capital
Commitments

1. RINMOIL Ferro
Alloys Pvt Ltd

50.00

51.55

2. International Coal
Ventures Pvt Ltd

14.29

500.00

(*) The accounts of the respective joint ventures for the Financial Year 2013-14 are not yet prepared.
Note 14.00 : Long-term Loans and Advances
Particulars
Capital advances
Advances & other recoverables
(Recoverable in cash or in kind or for value to be received)
Government departments
4.52
Less:Provision for doubtful advances
0.00
Contractors
Less:Provision for doubtful advances
Security Deposits
Loans and Advances to Related parties
Directors
Joint venture Companies
Other Loans and Advances
Loans
Employees
Others
Advances
MAT Credit Entitlement
Others

37.99
0.00

4.52

37.99

9.89

29.31
0.00

29.31

39.20
28.44

0.00
4.36

4.36

0.00
4.36

4.36

52.60
249.47

302.07

48.27
280.64

328.91

220.71
0.61

221.32

96.88
0.57

616.05

0.00
42.51
0.00
45.79
0.00
0.00
0.00
4.36
0.00
0.00
523.39
0.00

97.45
498.36

42.51

0.00
39.20
0.00

39.20

45.79

28.44
0.00
0.00

28.44

4.36

0.00
4.36
0.00

4.36

523.39

0.00
426.36
0.00

616.05

426.36
498.36

14.02 : Loans and advances due by Directors/officers

0.00

0.00

14.03 : Loans and advances due by Private Companies in which Director

of the Company is a director

4.36

4.36

Total

86

42.51

9.89
0.00

45.79

Total
14.01 Particulars of Long-term Loans & Advances
Capital Advances
Secured & Considered good
Unsecured & Considered good
Doubtful
Security Deposits
Secured & Considered good
Unsecured & Considered good
Doubtful
Loans and Advances to Related parties
Secured & Considered good
Unsecured & Considered good
Doubtful
Other Loans and Advances
Secured & Considered good
Unsecured & Considered good
Doubtful

Crs
As at
31st March, 2013

As at
31st March, 2014

Note 15.00 : Other Non Current Assets

Particulars

Crs
As at
31st March, 2013

As at
31st March, 2014

Interest Accrued on Loans

Employees
Others

14.63
45.60

Total

60.23

12.58
24.00
36.58

Note 16.00 : Inventories (As taken and certified by the Management)

Particulars

As at
31st March, 2014

Semi Finished/ Finished goods

Add: In-transit

2057.42
7.63

Raw materials
Add: In-transit/ Under inspection

1277.26
362.11
1639.37
328.06

Less: Provision for shortages

Stores & Spares
Add: In-transit/ Under inspection
Less: Provision for obsolescence & Non-moving items
Total

488.10
34.29
522.39
35.71

Crs
As at
31st March, 2013

2065.05

2078.74
4.96

2083.70

1311.31

1169.53
306.45
1475.98
192.63

1283.35

486.68

463.73
30.32
494.05
32.50

3863.04

461.55
3828.60

16.01 : Quantities of Closing Stock of finished / semi-finished goods have been adopted as per book balances after duly adjusting for
shortages/ excesses identified on physical verification at anytime during the year.
16.02: In line with industry practice, no credit is taken for the value of material in process except those lying at mills.
16.03: No credit is taken in the accounts for the stock of run of mines ore and rejects at Mines.
16.04: Since the Coke Breeze is used for internal consumption, the same has been valued at 60% of the production cost of BF coke.
16.05: Coke and other By products are valued at net realisable value, wherever cost is not determinable and at cost, where net
realisable value is not available, except in the case of Stock of BF Granulated slag at dump yard for which no value is assigned.
16.06: The stock of production related iron scrap and steel scrap has been considered in the accounts on the basis of visual survey
/ estimates and are valued al 75 % and 90 % respectively, at lower of the cost of Pig Iron and of the domestic net realisable
value of Pig Iron.

87

Note 17.00 : Trade Receivables

Particulars
Trade Receivables
Debts over six months
Other debts

Total

803.65

33.98
995.98
1029.96
20.31
1009.65

17.01: Particulars of Trade Receivables

Secured and considered good
Unsecured and considered good
Doubtful

0.00
803.65
20.32

0.00
1009.65
20.31

17.02 : Debts due by Directors/Officers

0.00

0.00

17.03 : Debts due by Private Companies in which Director of the company is a Director

0.00

0.00

20.87
803.10
823.97
20.32

Less : Provision for doubtful debts

Note 18.00 : Cash and Bank balances

Particulars
Cash and cash equivalents
Balances with Banks
Cheques, Drafts on hand
Cash on Hand
Remittances in-transit
Term deposits with Banks
Earmarked Balances with Banks
Prime Ministers Trophy Award Fund
Tot
al
otal

88

Crs
As at
31st March, 2013

As at
31st March, 2014

As at
31st March, 2014

4.65
71.73
0.05
0.20
1542.94

55.48
111.19
0.03
0.00
3.18
6.01

Crs
As at
31st March, 2013

175.89
175.89

5.45

1625.02
1625.02

Note 19.00 : Short-term Loans and Advances

Crs
As at
31st March, 2013

As at
31st March, 2014

Particulars
Loans and Advances to Related Parties
Directors
Joint venture Companies
Loans and Advances to Others
Loans
Material issued on loan
Advances & other recoverables
(Recoverable in cash or in kind or for value to be received)
Government departments
8.29
Less:Provision for doubtful advances
0.62

0.00
1.64

0.00
1.39

1.64

0.12

0.38

7.67

9.69
0.62

9.07

Contractors
Less:Provision for doubtful advances

72.02
5.16

66.86

34.42
4.38

30.04

Suppliers
Less:Provision for doubtful advances

51.61
8.98

42.63

33.10
7.88

25.22

Employees
Less:Provision for doubtful advances

7.41
0.16

7.25

10.09
0.16

9.93

3080.65

2533.11
546.17
33.99

3045.29

Foreign Exchange Forward contract receivables

Others
Less:Provision for doubtful advances
Advance Income Tax

2437.30
679.15
35.80

105.00

Prepaid expenses

3310.06

143.60

52.68
17.83

Deposits
Total
19.01: Particulars of Loans & Advances
Loans and Advances to Related parties
Secured & Considered good
Unsecured & Considered good
Doubtful
Loans and Advances to Others
Secured & Considered good
Unsecured & Considered good
Doubtful

0.00
1.64
0.00
0.00
3459.71
68.55

34.85

3263.15
2.39

6.85

Claims recoverable
Less: Provision for doubtful claims

1.39

53.46
17.23

36.23

107.57

114.47

3461.35

3417.75

1.64

0.00
1.39
0.00

3528.26

0.00
3416.36
64.26

1.39

3529.90

3480.62
3482.01

19.02: Loans and advances due by Directors/Officers

0.00

0.00

19.03: Loans and advances due by Private Companies in which

Director of the Company is a Director

1.64

1.39

Total

19.04: Short-term loans and advances include

against disputed taxes.

395.39 Crs (Previous Year

381.50 Crs) pertaining to deposits / advances made

89

Note 20.00 : Other Current assets

Particulars
Current maturities of Long-term Loans
Employees
Others
Interest accrued on loans to employees
Interest accrued others
Less: Provision for Non recoverable interest
Assets Retired from active use and held for disposal
Value of Fixed Assets
Less: Provision for loss
Deferred Premium on Forward contracts

Crs
As at
31st March, 2013

As at
31st March, 2014
16.36
24.00
11.95
0.04
6.67
6.55

Total
20.01 : Loans due by Directors

14.91
24.00

40.36
1.25

17.81
0.34

11.91

5.66
5.53

Sale of Products
Domestic
12751.31
Export
738.15
Less: Sale of Trial Run Production (Transferred to CWIP)
Other Operating Revenues
Internal consumption
Export benefits

96.73
0.00

0.0039

Total

Crs
Year ended
31st March, 2013

Year ended
31st March, 2014

13489.46
125.29

17.47

0.13
39.21
96.73

0.12
43.09

Note 21.00 : Revenue from Operations

Particulars

38.91
1.01

12954.86
598.07
13364.17
56.09
11.22
13431.48

13552.93
89.83

13463.10
80.39
21.79
13565.28

21.01 : As per section 441A of the Companies Act 1956, cess on turnover is leviable. Government of India has not yet framed any rules
/ guidelines in this regard and hence no amount has been provided and / or paid.

90

Quantity in Tonnes *
Value in Crs

21.02 : Stocks & Sales

Pig Iron

Blooms

Particulars
Opening stock

Quantity
Value

Sales

Quantity
Value

Closing stock

Quantity
Value

Saleable
Sundries *
Steel
Coke & Coke
Others
Products

Total

9654
(4667)
24.53
(12.40)

65050
(55773)
206.12
(174.52)

175565
(84517)
622.51
(304.68)

722879
(686698)
999.63
(1062.92)

269696
(274288)
230.91
(225.43)

2083.70
(1779.96)

283945
(454104)
681.10
(1092.89)

118607
(130906)
357.72
(425.33)

2868155
(2670542)
11606.27
(11409.27)

249415
(178871)
277.16
(208.48)

1731079
(1406112)
441.92
(327.13)

13364.17
(13463.10)

46913
(9654)
119.14
(24.53)

77564
(65050)
227.11
(206.12)

145367
(175565)
479.48
(622.51)

705548
(722879)
984.62
(999.63)

349812
(269696)
254.70
(230.91)

2065.05
(2083.70)

(*) Quantity for Argon Gas, Oxygen Gas and Nitrogen Gas is in Thcum.
Note: (i) Figures in brackets are for previous year.
(ii) Closing stock includes 19721.77 tonnes of value 72.51 Crs (Previous year 17202.93 tonnes of value 64.88 Crs.) in the
custody of Consignment / Handling Agents.
(iii) Figures of closing stock are after adjustment for internal consumption, transfers to capital works, shortages / excesses.
(iv) Others include By-products and Iron & Steel Scrap.
Note 22.00 : Other Income
Particulars
Interest Income
Banks
Loans to employees
Others
Dividend Income
Other Non-Operating Income
Claims for finished goods (Shortages & Missing Wagons)
Rent recoveries
Liquidated damages
Profit on sale of fixed assets
Other Income
Provision no longer required written back
Sundry receipts*
Total

Year ended
31st March, 2014
120.01
3.79
56.25

0.83
7.80
16.79
0.56
1.71
1.03
98.11

180.05
0.11

126.83
306.99

* Consequent to opinion of ICAI on advances paid for Assets not owned by an Enterprise, an amount of
which was previously charged to Statement of Profit and Loss.

Crs
Year ended
31st March, 2013

151.26
3.97
78.10

0.86
7.11
17.46
0.45
1.02
12.34
182.72

233.33
0.13

221.96
455.42

50.80 Crs was reversed,

91

Quantity: Tonnes
Value: Crs

Note 23.00 : Cost of Materials consumed

Particulars

Year ended 31st March, 2014

Raw Materials
Coal
Iron Ore
Limestone
Dolomite
Silico Manganese
Ferro Silicon
Aluminium
Manganese Ore
Petroleum Coke
Sea Water Magnesite
Billets
Others

Quantity

Value

3967493
5724941
975567
603606
53589
4840
4612
15978
6028
2729
0

3708.08
2777.27
142.24
98.17
288.58
36.51
59.68
2.72
15.29
13.21
0.00
14.47
7156.23

Year ended 31st March, 2013

Quantity
Value
3901112
5776883
1043217
557355
48876
4875
3379
14161
5693
2135
13470

4346.08
3161.71
139.87
84.88
278.00
33.80
44.11
2.45
15.12
8.38
50.65
9.01
8174.07

Intermediate Products
178.16

1242.48

308.57
7025.82

1317.89
8098.66

Year ended 31st March, 2014

Year ended 31st March, 2013

Output from Trial Run Production

Less: Material Consumed for Trial Run Production
Total
23.01 : Value of Indigenous and Imported Raw materials consumed
Particulars

Crs

Crs

Indigenous
Imported

3575.19
3581.04

49.96
50.04

Total

7156.23

100.00

4008.68
4165.39
8174.07

49.04
50.96
100.00

Note 24.00 : Changes in Inventories of Semi-Finished / Finished goods

Particulars
Opening stock
Less: Closing stock
Net Reduction / (Accretion)

Year ended
31st March, 2014
2083.70
2065.05
18.65

Note 25.00 : Employee Benefits

Particulars

Year ended
31st March, 2014

1779.96
2083.70
(303.74)
Crs
Year ended
31st March, 2013

Salaries and wages

Companys contribution - provident fund & other funds
Staff Welfare expenses

1483.10
94.72
173.28

1269.37
104.41
95.29

Total

1751.10

1469.07

25.01: Expenditure on Employee benefits not included above and charged to:
Particulars

92

Crs
Year ended
31st March, 2013

Year ended
31st March, 2014

Capital Work in Progress / Expenditure During Construction

Salaries and wages
Companys contribution - provident fund & other funds
Staff Welfare expenses

119.28
8.16
14.08

Total

141.52

Crs
Year ended
31st March, 2013

100.77
8.58
8.31
117.66

25.02 : Details of Employee Benefits

25.02.01: An amount of 6.16 Crs (Previous Year 6.02 Crs) recognised in the Statement of Profit and Loss Account and 0.53
Cr (Previous Year 0.50 Cr) in Capital Work in Progress, 0.03 Cr (Previous Year 0.03 Cr) in Intangible Assets under
Development towards Superannuation Benefit Scheme (Post Employment Benefit - Defined Contribution Plan).
25.02.02: General Description of the Post Employment Benefits - Defined Benefit Plans:
Provident Fund

- Company pays fixed contribution to Provident Fund, at predetermined rates, to

a separate Trust, which invests the funds in permitted securities. On
Contributions, the Trust is required to pay a minimum rate of interest, to the
members, as specified by Govt. of India. The obligation of the Company is limited
to the shortfall in the rate of interest on the Contribution based on its return on
investments as compared to the declared rate.

Gratuity

- Payable to employees, who render continuous service of 5 years or more, on

separation, at 15 days of last drawn pay for each completed year of service.

Retirement Settlement Benefits

- The retired employees, their dependents, as also the dependents of the

employees expired while in service are entitled for travel and transport expenses
to their place of permanent residence. At the time of retirement, employees will
be given 10 Gms. of gold each.

Employee Family Benefit Scheme - Monthly payments, till the notional date of superannuation, to employees
separated upon disablement / legal heirs of deceased employees at their option
who fulfill the criteria of prescribed amount of deposit.
25.02.03: Reconciliation of present value of defined benefit obligations:
Particulars
Obligation as at the beginning of the period
Service Cost
Interest Cost
Actuarial gains (-) / losses (+)
Benefits paid
Obligations as at the end of the period

Gratuity
677.22
(629.89)
12.78
(19.00)
60.63
(49.59)
-28.31
(-1.27)
-21.82
(-20.00)
700.50
(677.22)

Crs
Retirement
Medical
Benefits

Retirement
Settlement
Benefits

150.23
(145.63)
6.99
(5.48)
11.98
(11.44)
23.32
(-7.08)
-0.93
(-5.24)
191.59
(150.23)

50.98
(44.06)
1.86
(1.77)
4.00
(3.46)
-2.10
(3.20)
-1.89
(-1.53)
52.85
(50.98)

Employee
Family Benefit
Scheme
119.97
(97.83)
26.72
(17.00)
8.80
(7.17)
52.94
(14.43)
-19.87
(-16.46)
188.56
(119.97)

Sub Note: Figures in the brackets are for previous year.

25.02.04: Against present value of gratuity obligation as at 31st March 2014 of 700.50 Crs (Previous Year 677.22 Crs) , Company
has funded a sum of 717.40 Crs (Previous Year 671.24 Crs) through a separate Gratuity Fund which are covered by
the Trusts Plan Assets for equal amount. The excess funding of 16.90 Crs is proposed for withdrawal during the
next financial year. The other post-retirement defined benefit obligations are unfunded.
25.02.05: Reconciliation of fair value of Plan Assets:
Particulars
Balance as at the opening of the period
Expected Return
Actuarial gains (+) / losses (-)
Contributions by the Employer
Benefits paid
Balance as at the end of the period

Crs
Gratuity
2013-14
671.24
59.70
2.29
5.99
(21.82)
717.40

2012-13
630.39
55.90
3.47
1.47
(20.00)
671.24

93

25.02.06: Reconciliation of Present Value of Defined Benefit Obligation and Fair value of Plan Assets:

Crs

Particulars

Gratuity
2013-14
717.40
700.50
(16.90)

Fair Value of Plan Assets

Present Value of Defined Benefit Obligation
Amount recognised in Balance Sheet as at the end of the period

2012-13
671.24
677.22
5.98

25.02.07: Expenses recognised in the statement of Profit and Loss .

Particulars

Crs
Retirement
Retirement
Employee Family
Medical Benefits Settlement Benefits Benefit Scheme

Gratuity

Service Cost
Interest Cost
Actuarial gains (-) / losses (+)
Expected Return on Plan Assets
Accounting Estimate Change on Opening obligation
Total to be charged - Employees Benefits

12.78
(19.00)
60.63
(49.59)
-30.60
(-4.73)
-59.70
(-55.90)
0.00
(0.00)
-16.89
(7.96)

7.00
(5.49)
11.98
(11.44)
23.32
(-7.08)
0.00
(0.00)
0.00
(0.00)
42.30
(9.85)

1.86
(1.77)
4.00
(3.46)
-2.10
(3.20)
0.00
(0.00)
0.00
(0.00)
3.76
(8.44)

26.72
(17.00)
8.80
(7.17)
52.94
(14.43)
0.00
(0.00)
0.00
(0.00)
88.46
(38.60)

-15.64
(7.37)
-0.18
(0.17)
-1.03
(0.40)
-0.04
(0.02)

39.18
(9.13)
0.64
(0.20)
2.39
(0.50)
0.09
(0.02)

3.49
(7.82)
0.05
(0.17)
0.21
(0.43)
0.01
(0.02)

81.93
(35.77)
1.34
(0.79)
5.01
(1.96)
0.18
(0.08)

Amount charged to :
Statement of Profit & Loss (Note -B 25.00)
Expenditure During Construction
Capital Work in Progress
Intangible Assets under Development
Sub Note: Figures in the brackets are for previous year.

25.02.08: Effect of one percentage point change in the assumed inflation rate in case of valuation of benefits under post retirement
medical benefit scheme:
Crs
Effect of one percentage point
Effect of one percentage point
increase in medical cost trend rate decrease in medical cost trend rate

Particulars

On aggregate current service and interest cost of

post retirement medical benefits
On present value of defined benefit obligations
as at end of the period

2013-14

2012-13

2013-14

2012-13

3.76

4.54

(3.23)

(3.52)

32.28

37.22

(28.30)

(28.82)

25.02.09: Actuarial assumptions

Description

As at 31st March 2014

As at 31st March 2013

Discount Rate (per annum)

Mortality rate
Withdrawal rates (per annum)

9.1%
Indian Assured lives (2006-08) Ultimate Table
Upto 30 years of age 3%; Upto 44 years of age
2%; Above 44 years of age 1%

8%
Indian Assured lives (2006-08) Ultimate Table
Upto 30 years of age 3%; Upto 44 years of age
2%; Above 44 years of age 1%.

Estimated rate of return on

Planned Assets
Medical Cost Trend Rates (Per Annum)
Salary Escalation (per annum)

94

9%
9%
4.5% of Hospital Cost and Medi-claim Premium
4.5% of Hospital Cost and Medi-claim Premium
7%
7%
The estimate of future salary increase considered in actuarial valuation takes into account inflation
rate, seniority,industrial practices, promotion and other relevant factors on long term basis.

25.02.10: Provident Fund : Companys contribution paid/payable during the year to Provident Funds are recognised in the Statement
of Profit & Loss. The companys Provident Fund Trusts are exempted under section 17 of the Emplyees Provident Fund and
Miscellanceous Provisions Act, 1952. The conditions for grant of exemption stipulated that the employer shall make good,
deficiency if any, in the interest rate declared by the Trusts vis-a-vis statutory rate. The Company doesnot anticipate any
further obligations in the near forseeable future having regard to the assets of the funds and return on investment.
Note 26.00 : Finance Costs
Crs
Year ended
31st March, 2014

Year ended
31st March, 2013

Interest :
Foreign currency facilities
Bank Loans & Commercial papers
Income Tax
Others
Other Borrowing costs
Loss/(Gain) on Foreign currency transactions and translation

204.43
129.74
0.79
0.75
2.49
(0.08)

133.67
217.79
0.00
2.90
4.83
0.06

Total

338.12

359.25

26.01: Expenditure on Finance Costs not included above and charged to:
Capital Work in Progress / Expenditure During Construction
Interest - Banks

164.25

56.71

Particulars

Note 27.00 : Other expenses

Particulars

Note No:

Consumption of Stores and Spare parts

27.02
Power and Fuel
27.03
Repairs and Maintenance
27.04
Remuneration to Auditors
27.05
Miscellaneous Expenses
27.06
Rent
Rates and taxes
Insurance
Handling and scrap recovery
Freight outward
Provisions
Shortage/damaged material/obsolescence/non-moving items of stores
Doubtful advances and claims
Doubtful debts
Dropped SLTM Project
Non Recoverable Interest
Write-offs
Shortage/damaged material/obsolescence/non-moving items of stores
Doubtful advances and claims
Sundries
Total

Crs
Year ended
31st March, 2013

Year ended
31st March, 2014

529.88
630.95
204.43
0.26
282.75
1.92
32.22
9.28
132.91
415.09

556.98
671.34
236.49
0.32
236.45
2.13
32.94
9.31
144.84
501.28
4.42
3.83
0.00
0.00
0.00
0.03
0.00

8.25

0.03
41.09
2441.45

2.82
1.65
0.01
0.54
0.30
0.04
0.00

5.32

0.04
51.70
2296.75

95

27.01: Expenditure on Other expenses not included above and charged to:
Year ended
31st March, 2014

Crs
Year ended
31st March, 2013

Capital Work in Progress / Expenditure During Construction

Power and Fuel
Repairs and maintenance - Plant and Equipment and others
Security Expenses
Travelling Expenses
Printing and Stationery
Postage, telegrams and telephone
Water Charges
Advertisement
Technical consultancy
Sundries

11.38
0.56
13.73
6.36
0.02
0.22
11.89
1.59
0.02
0.06

26.42
0.05
14.58
2.05
0.02
0.22
3.19
1.90
0.05
0.05

Total

45.83

48.53

Particulars

27.02 : Value of Indigenous and Imported Stores and Spares consumed

Particulars

Year ended
31st March, 2014
Crs

Indigenous
Imported

506.67
50.31

90.97
9.03

Total

556.98

100.00

27.03 : Power and Fuel

Year ended
31st March, 2013
Crs
%
483.13
91.18
46.75
8.82
529.88

100.00

Year ended
31st March, 2014

Crs
Year ended
31st March, 2013

Purchased power
Coal
Furnace oil/ LSHS/ LDO

273.86
381.42
16.06

286.93
342.47
1.55

Total

671.34

630.95

Particulars

27.03.01 : Cost of Power and fuel does not include the cost of generation of power and production of certain fuel elements in the Plant
which are internally consumed. The related expenses have been included under the primary heads of account.
27.04 : Repairs and Maintenance
Year ended
31st March, 2014

Crs
Year ended
31st March, 2013

Plant and Equipment

Buildings
Others

114.37
56.60
65.52

99.60
39.92
64.91

Total

236.49

204.43

Particulars

96

27.05 : Remuneration to Auditors

Crs
Year ended
31st March, 2014

Year ended
31st March, 2013

As Auditor
For taxation matters
Other Services
For reimbursement of expenses

0.10
0.02
0.00
0.20

Total

0.32

0.10
0.02
0.01
0.13
0.26

Particulars

27.06 : Miscellaneous Expenses

Particulars
Technical services
Travelling expenses
Printing and stationery
Postage, telegrams and telephone
Water charges
Legal expenses
Bank charges
Community Development Welfare
Donations
CSR Foundation
Others
Security expenses
Entertainment expenses
Advertisement
Demurrages and wharfages
ISO Audit Expenses
Selling expenses
Exchange Differences (Net)
Excise Duty
Total

Crs
Year ended
31st March, 2014

Year ended
31st March, 2013

6.79
70.88
2.40
3.59
39.31
1.26
0.88
6.57

5.89
74.93
2.47
3.50
38.17
1.11
1.47
0.33

4.12
4.75

8.87
41.61
2.01
10.44
1.67
0.21
22.43
29.12
(11.59)
236.45

4.44
1.04

5.48
35.31
2.40
14.27
17.05
0.09
17.22
15.17
47.89
282.75

27.06.01 : Excise Duty of 11.59 Crs (Credit) [Previous year 47.89 Crs (Debit)] disclosed in miscellaneous expenses comprise of
Excise Duty component on stock at branches, Goods in transit and shortage at branches, Accretion / Reduction of Inventories
of Semi / Finished Goods and By products at Plant.
Note 28.00 : Prior period items

Crs
Year ended
31st March, 2014

Year ended
31st March, 2013

Sale of products
Other Revenue
Raw Materials
Stores and spares
Other Expenses
Depreciation
Internal Consumption

0.00
(0.31)
0.00
0.00
(1.57)
0.00
0.00

(0.09)
(4.38)
(2.97)
(0.09)
(4.96)
(0.80)
(1.77)

Total

(1.88)

(15.06)

Particulars

Sub Note: Figures in brackets represent credit amounts.

97

Note 29.00 : Earning Per Share (EPS)

Particulars
Net Profit as per P&L Account
Crs
Preference Dividend and Tax thereon
Crs
Net Profit attributable to Equity Shareholders
Crs
Weighted average number of Equity Shares outstanding during the year No.of shares
Face value per share
Basic and diluted EPS

2013 - 2014

Crs
2012 - 2013

366.45
65.52
300.93
4889846200
10
0.62

352.83
117.94
234.89
4889846200
10
0.48

Note 30.00 : Contingent Liabilities and Commitments (to the extent not provided for)
30.01 : Contingent Liabilities
30.01.01: Claims against the company not acknowledged as debt
Particulars
Contractors / Suppliers / Customers
Local Authorities - State Govt.
Sales Tax matters *
Income Tax
Customs / Excise duty
R & D Cess
Others

Crs
st

As at 31
March, 2014

As at 31st
March, 2013

775.55
176.82
1768.83
207.14
218.72
3.38
408.43

585.25
152.89
1633.24
195.52
200.86
3.38
401.42

(*) No liability is expected to arise as the movement of goods were on stock transfer and Sales Tax is paid on eventual sales.
30.01.02

: Claims in Courts in connection with Land Acquisition:

- Amount not ascertainable.

30.01.03

: Liability towards reimbursement of excise duty on structural works wherever applicable. - Amount not ascertainable.

30.01.04

: Show cause notices issued by various Government Authorities are not considered as contingent liabilities.

30.02

: Commitments
Estimated amount of contracts remaining to be executed on capital account and not provided for 6524.27 Crs
(Previous Year 4992.12 Crs).

Note 31.00 : Notes to accounts - Others

98

31.01

: For a substantial portion of Loans and Advances, Trade payables/ Trade receivables / Other payables, letters seeking
confirmation of balances were sent and no material discrepancies were found in respect of balances confirmed.

31.02

: Details of Foreign Exchange Transactions

31.02.01

: Expenditure in foreign currency

(a) Technical consultation fee / know-how
(b) Interest
(c) Others

2013-14
18.38
20.88
1.03

Crs
2012-13
5.09
22.54
14.83

31.02.02

: Earnings in foreign exchange

(a) Export of goods (on FOB basis)
(b) Others

2013-14
737.71
3.74

Crs
2012-13
597.79
1.13

31.02.03 : Value of imports during the year calculated on CIF basis

(a) Raw materials
(b) Components and Spare parts
(c) Capital Goods

Crs
2012-13
3961.18
89.02
134.78

2013-14
3767.65
87.63
131.94

31.03 : Disclosure regarding related parties for the year 2013-14

Nature of Relationship

Name of the Related party

(a) Joint Ventures

RINMOIL Ferro Alloys Pvt Ltd

International Coal Ventures Pvt Ltd

(b) Key Management Personnel

Shri A.P. Choudhary (Upto 31.12.2013)

Shri P.Madhusudan
Shri Umesh Chandra
Shri T.K.Chand
Shri Y.R.Reddy
Shri N.S.Rao (Upto 31.10.2013)
Shri P.C. Mohapatra (w.e.f. 01.11.2013)
Crs

The details of transactions between the Company and the related parties during the year are given below
Joint Venture
Nature of Transaction
Investments
Long-term Loans and Advances
Short-term loans and advances
Interest Accrued
Current maturity of Long-term Loans
and advances

st

As at 31
March 2014

Key Management Personnel

st

As at 31
March 2013

As at 31
March 2014

Note No:

st

As at 31
March 2013

1.50
4.36
1.64
0.00

1.50
4.36
1.39
0.00

0.00
0.00
0.00

0.00
0.00
0.0039

B 13.00
B 14.00
B 19.00
B 20.00

0.00

0.00

0.00

0.00

B 20.00

For theYear Ended

2013-14
Remuneration
Interest earned
Miscellaneous expenses

st

0.00
0.00
0.00

For theYear Ended

2012-13
0.00
1.24
0.00

2013-14
1.41
0.00
0.01

2012-13
1.32
0.00
0.03

B 25.00
B 22.00
B 27.06

31.04 : The Companys business is construed as one business segment which comprises of mainly production of Steel products,
whose associated risks and returns are predominantly the same. Further, the Company has no geographical segments which
are subject to different risks and returns. Hence no separate disclosure in terms of Accounting Standard (AS) 17 on Segment
Reporting is considered necessary.
31.05 : Since the Lease transactions of the Company, are incidental to the Companys main business of production & sale of Iron & Steel
products, specific disclosures as per AS - 19 on Leases, are not considered necessary.
31.06 : The entire plant is considered as a Cash Generating Unit. As Recoverable amount of the Cash Generating Unit, being its value
in use, is in excess of its carrying amount, there is no impairment loss in terms of the AS 28 - Impairment of assets.
31.07 : Previous years figures have been rearranged / regrouped wherever necessary to conform to current years classification.

99

Rashtriya Ispat Nigam Limited

Visakhapatnam Steel Plant
Visakhapatnam
CIN:U27109AP1982GO1003404

N O T I C E
NOTICE is hereby given to all the Shareholders of Rashtriya Ispat Nigam Limited that the 32ndAnnual
General Meeting of the Company will be held at 15.00hrs on Monday, the 29th September, 2014 at
the Registered Office of the Company at Administrative Building, Visakhapatnam Steel Plant,
Visakhapatnam 530 031, to transact the following business :
ORDINARY BUSINESS:
1. To receive, consider and adopt the audited financial statements of the Company for the year
ended March 31, 2014, the reports of the Board of Directors and Auditors thereon.
2. To confirm payment of interim dividend already paid and to declare final dividend for the financial
year 2013-14.
3. To appoint a Director in place of Shri Ashhok Kumar Jain (DIN: 0598647) who retires by Rotation
and being eligible offers himself for re-appointment.
4. To appoint a Director in place of Prof. Sushil (DIN: 05300091) retires by Rotation and being
eligible offers himself for reappointment.
5. To appoint a Director in place of Prof. S.K.Garg (DIN: 06416704) who retires by Rotation and
being eligible offers himself for reappointment.
6. To fix the Remuneration of the Statutory Auditors
It is proposed that the Members may consider and if thought fit, to pass with or without
modification the following Resolution as an Ordinary Resolution.
RESOLVED THAT the Board of Directors of the Company be and are hereby authorized to fix the
Auditors Remuneration, out of pocket expenses, Travelling expenses and other living expenses
appropriately for the Statutory Auditors, who will be appointed by the C&AG with the
recommendations of Audit Committee from time to time.
FURTHER RESOLVED THAT the Board of Directors be and are hereby further authorized to fix
the payment for any other services rendered by the Statutory Auditors so appointed, with the
recommendations of Audit Committee from time to time.

100

SPECIAL BUSINESS
Appointment of Directors
7. To appoint Dr Sheela Bhide (DIN: 1843547) as Director of the Company and in this regard to
consider and if thought fit, to pass with or without modification(s), the following Resolution as
an Ordinary Resolution.
RESOLVED THAT pursuant to the provisions of Section 149, 152 and other applicable provisions,
if any, of the Companies Act, 2013 and rules made thereunder, Dr Sheela Bhide (DIN: 1843547)
who was appointed as part time non-official director (i.e. Independent Director) by the President
of India pursuant to powers vested under the Article No.75 of Articles of Association of RINL
and assumed charge on 24th February, 2014, be and is hereby appointed as a Director of the
Company, liable to retire by Rotation.
8. To appoint Lt. Gen (Retd) Arvind Mahajan (DIN: 02410540) as Director of the Company and in
this regard to consider and if thought fit, to pass with or without modification(s), the following
Resolution as an Ordinary Resolution.
RESOLVED THAT pursuant to the provisions of Section 149, 152 and other applicable provisions,
if any, of the Companies Act, 2013 and rules made thereunder, Lt. Gen (Retd) Arvind Mahajan
(DIN: 02410540) who was appointed as part time non-official director (i.e. Independent Director)
by the President of India pursuant to powers vested under the Article No.75 of Articles of
Association of RINL and assumed charge on 24th February, 2014, be and is hereby appointed as
a Director of the Company, liable to retire by Rotation.

9. To appoint Shri Ajay Kumar Goyal (DIN: 02726120) as Director of the Company and in this regard
to consider and if thought fit, to pass with or without modification(s), the following Resolution
as an Ordinary Resolution.
RESOLVED THAT pursuant to the provisions of Section 149, 152 and other applicable provisions,
if any, of the Companies Act, 2013 and rules made thereunder, Shri Ajay Kumar Goyal (DIN:
02726120) who was appointed as part time non-official director (i.e. Independent Director) by
the President of India pursuant to powers vested under the Article No.75 of Articles of Association
of RINL and assumed charge on 24th February, 2014, be and is hereby appointed as a Director of
the Company, liable to retire by Rotation.

10. To appoint Shri Rajib Sekhar Sahoo (DIN: 02708503) as Director of the Company and in this
regard to consider and if thought fit, to pass with or without modification(s), the following
Resolution as an Ordinary Resolution.
RESOLVED THAT pursuant to the provisions of Section 149, 152 and other applicable provisions,
if any, of the Companies Act, 2013 and rules made thereunder, Shri Rajib Sekhar Sahoo (DIN:
02708503) who was appointed as part time non-official director (i.e. Independent Director) by
the President of India pursuant to powers vested under the Article No.75 of Articles of Association
of RINL and assumed charge on 24th February, 2014, be and is hereby appointed as a Director of
the Company, liable to retire by Rotation.

101

11. To appoint Shri P.C.Mohapatra (DIN: 06738364) as Director (Projects) of the Company and in
this regard to consider and if thought fit, to pass with or without modification(s), the following
Resolution as an Ordinary Resolution.
RESOLVED THAT pursuant to the provisions of Section 149, 152 and other applicable provisions,
if any, of the Companies Act, 2013 and Rules made thereunder, Shri P.C.Mohapatra (DIN:
06738364) who was appointed as Director (Projects) by the President of India pursuant to powers
vested under the Article No.75 of Articles of Association of RINL and assumed charge on 01st
November, 2013, be and is hereby appointed as a Director (Projects) of the Company.

12. To appoint Dr.G.B.S.Prasad (DIN: 06886500) as Director (Personnel) of the Company and in this
regard to consider and if thought fit, to pass with or without modification(s), the following
Resolution as an Ordinary Resolution.
RESOLVED THAT pursuant to the provisions of Section 149, 152 and other applicable provisions,
if any, of the Companies Act, 2013 and rules made thereunder, Dr.G.B.S.Prasad (DIN: 06886500)
who was appointed as Director (Personnel) by the President of India pursuant to powers vested
under the Article No.75 of Articles of Association of RINL and assumed charge on 01st May,
2014, be and is hereby appointed as a Director (Personnel) of the Company.
13. To appoint Shri.D.N.Rao (DIN: 06914797) as Director (Operations) of the Company and in this
regard to consider and if thought fit, to pass with or without modification(s), the following
Resolution as an Ordinary Resolution.
RESOLVED THAT pursuant to the provisions of Section 149, 152 and other applicable provisions,
if any, of the Companies Act, 2013, Rules made thereunder, Shri D N Rao (DIN: 06914797) who
was appointed as Director (Operations) by the President of India pursuant to powers vested
under the Article No.75 of Articles of Association of RINL and assumed charge on 1st August,
2014, be and is hereby appointed as a Director (Operations) of the Company.
Cost Auditors Remuneration

14. To ratify the remuneration of the Cost Auditors for the financial year 2014-15 and in this regard
to consider and if thought fit, to pass, with or without modification(s), the following resolution
as an Ordinary Resolution:
RESOLVED THAT pursuant to the provisions of Section 148 and all other applicable provisions
of the Companies Act, 2013 and the Companies (Audit and Auditors) Rules, 2014 (including any
statutory modification(s) or re-enactment thereof), the Cost Auditors appointed by the Board of
Directors of the Company, to conduct the audit of the cost records of the Company for the financial
year 2014-15, be paid the remuneration of 1,55,000/- (One Lakh Fifty Five Thousand only) plus
applicable service tax and other facilities detailed in the Statement annexed to the Notice
convening this Meeting.
RESOLVED FURTHER THAT the Board of Directors of the Company be and is hereby authorised
to do all acts and take all such steps as may be necessary, proper or expedient to give effect to
this resolution.

102

15. To adopt new set of Articles of Association of RINL

To adopt new set of Articles of Association of the Company containing regulations in conformity
with the Companies Act, 2013 and in this regard to consider and if thought fit, to pass, with or
without modification(s), the following resolution as a Special Resolution:
RESOLVED THAT pursuant to the provisions of Section 14 and all other applicable provisions
of the Companies Act, 2013 read with Companies (Incorporation) Rules, 2014 (including any
statutory modification(s) or re-enactment thereof, for the time being in force), the draft regulations
contained in the Articles of Association of RINL submitted to this meeting be and are hereby
approved and adopted in substitution and to the entire exclusion, of the regulations contained in
the existing Articles of Association of the Company;
RESOLVED FURTHER THAT the Board of Directors of the Company be and is hereby authorized
to do all acts and take all such steps as may be necessary, proper or expedient to give effect to
this resolution.

16. To accord approval for the number of directors on the Board of RINL to be a maximum of
Sixteen directors
RESOLVED THAT pursuant to the provisions of Section 149 and other applicable provisions, if
any, (including modification and re-enactment thereof) of the Companies Act, 2013 and subject
to the Articles of Association of the Company, the consent of the members be and is hereby
accorded for the number of directors on the Board of RINL to be a maximum of Sixteen directors.
RESOLVED FURTHER THAT the Company Secretary of RINL be and is hereby authorized to do
all the acts, deeds and things which are necessary to give effect to the aforesaid resolution.

17. To accord approval for issue of Non-Convertible Debentures (NCDs)

To consider and if thought fit, to pass, with or without modification(s), the following resolution
as a Special Resolution:
RESOLVED THAT pursuant to provisions of Section 42 of the Companies Act, 2013, read with
rule 14 (2) (a) of The Companies (Prospectus and Allotment of Securities) Rules 2014, and
other applicable provisions, if any, of the Companies Act 2013 (including any statutory
modification(s) or re-enactment(s) thereof), the consent of the Company be and is hereby accorded
to for issue of non-convertible bonds upto 4,000Crs (Rupees Four thousand Crores only),
through private placement, in one or more tranches, within one year from the date of approval,
as a part of borrowings for capex purpose by the Company, approved by the Board at its 284th
Board meeting held on September 09, 2014.
RESOLVED FURTHER THAT the Board be and is hereby authorized to do or cause to be done all
such acts, deeds and other things as may be required or considered necessary or incidental
thereto, for giving effect to the aforesaid resolution

103

18. To appoint Shri.T.V.S.Krishna Kumar (DIN: 06914774) as Director (Finance) of the Company and
in this regard to consider and if thought fit, to pass with or without modification(s), the following
Resolution as an Ordinary Resolution.
RESOLVED THAT pursuant to the provisions of Section 149, 152 and other applicable provisions,
if any, of the Companies Act, 2013 and Rules made thereunder, Shri.T.V.S. Krishna Kumar (DIN:
06914774) who was appointed as Director (Finance) by the President of India pursuant to powers
vested under the Article No.75 of Articles of Association of RINL and assumed charge on 25th
August, 2014 be and is hereby appointed as Director (Finance) of the Company.
Registered office
Administrative Building
Visakhapatnam Steel Plant
Visakhapatnam 530 031

By order of the Board

P Mohan Rao
General Manager (CA) &
Company Secretary

Date:23rd Sept. 2014

NOTE:
1. A Member entitled to attend and vote at the Meeting is entitled to appoint a proxy to attend and
vote instead of himself and the proxy need not be a Member.
2. The President of India may appoint one or more person(s) to represent at the Meeting.
3. Relevant documents referred to in the accompanying notice and the Statement are open for
inspection by the members at the Registered office of the Company on all working days during
business hours.

104

ANNEXURE TO NOTICE
EXPLANATORY STATEMENT TO THE SPECIAL BUSINESSES PROPOSED IN THE NOTICE
(Pursuant to Section 102(1) of the Companies Act, 2013)
Item No.7:

Dr.Sheela Bhide was appointed as part-time non official director of RINL by the President
of India vide its letter No.1(4)2013-VSP dated February 20, 2014 issued by Ministry of
Steel (MoS) for a period of three years from the date of notification i.e., February 20, 2014
or until further orders from the MoS, whichever is earlier.
Her brief resume, inter-alia, giving nature of expertise in specific functional area is
provided elsewhere which forms part of this notice.
None of the Directors or Key Managerial Personnel of the Company or their relatives
except Dr.Sheela Bhide is in any way, concerned or interested, financially or otherwise,
in the resolution.
The Board recommends the resolution for the approval of shareholders.

Item No.8:

Lieutenant General (Retired) Arvind Mahajan was appointed as part-time non official
director of RINL by the President of India vide its letter No.1 (4)2013-VSP dated February
20, 2014 issued by Ministry of Steel (MoS) for a period of three years from the date of
notification i.e., February 20, 2014 or until further orders from the MoS, whichever is
earlier.
His brief resume, inter-alia, giving nature of expertise in specific functional area is
provided elsewhere which forms part of this notice.
None of the Directors or Key Managerial Personnel of the Company or their relatives
except Lieutenant General (Retired) Arvind Mahajan is in any way, concerned or interested,
financially or otherwise, in the resolution.
The Board recommends the resolution for the approval of shareholders.

Item No.9:

Mr. Ajay Kumar Goyal was appointed as part-time non official director of RINL by the
President of India vide its letter No.1 (4)2013-VSP dated February 20, 2014 issued by
Ministry of Steel (MoS) for a period of three years from the date of notification i.e., February
20, 2014 or until further orders from the MoS, whichever is earlier.
His brief resume, inter-alia, giving nature of expertise in specific functional area is
provided elsewhere which forms part of this notice.
None of the Directors or Key Managerial Personnel of the Company or their relatives
except Mr. Ajay Kumar Goyal is in any way, concerned or interested, financially or
otherwise, in the resolution.
The Board recommends the resolution for the approval of shareholders.

Item No.10: Mr. Rajib Sekhar Sahoo was appointed as part-time non official director of RINL by the
President of India vide its letter No.1 (4)2013-VSP dated February 20, 2014 issued by
Ministry of Steel (MoS) for a period of three years from the date of notification i.e., February
20, 2014 or until further orders from the MoS, whichever is earlier.
His brief resume, inter-alia, giving nature of expertise in specific functional area is
provided elsewhere which forms part of this notice.

105

None of the Directors or Key Managerial Personnel of the Company or their relatives
except Mr. Rajib Sekhar Sahoo is in any way, concerned or interested, financially or
otherwise, in the resolution.
The Board recommends the resolution for the approval of shareholders.
Item No.11: Mr. P. C. Mohapatra was appointed as Director (Projects) of RINL by the President of
India vide its letter No. 1(8)2012-VSP dated August 16, 2013 issued by Ministry of Steel
(MoS) for a period of five years from the date of assumption of charge of the post, i.e.
November 1, 2013, or till the date of his superannuation or until further orders from the
MoS, whichever is earliest.The terms and conditions regulating his appointment, is as
per the letter No. 1(8)2012-VSP, dated February 10, 2014 issued by the MoS, Govt of India.
His brief resume, inter-alia, giving nature of expertise in specific functional area is
provided elsewhere which forms part of this notice.
None of the Directors or Key Managerial Personnel of the Company or their relatives
except Mr. P. C. Mohapatra is in any way, concerned or interested, financially or otherwise,
in the resolution.
The Board recommends the resolution for the approval of shareholders.
Item No.12: Dr.G.B.S.Prasad, Executive Director (Personnel) of RINL was appointed as Director
(Personnel) of RINL by the President of India vide its letter No.1(9)2013-VSP dated
February 11, 2014 issued by Ministry of Steel (MoS) for a period of five years from the
date of assumption of charge of the post, i.e. May 01, 2014, or till the date of his
superannuation or until further orders from the MoS, whichever is earliest. The terms
and conditions regulating his appointment is as per the letter No. 1(9)/2013-VSP dated
July 02, 2014 issued by the MoS, Govt.of India.
His brief resume, inter-alia, giving nature of expertise in specific functional area is
provided elsewhere which forms part of this notice.
None of the Directors or Key Managerial Personnel of the Company or their relatives
except Dr.G.B.S.Prasad is in any way, concerned or interested, financially or otherwise,
in the resolution.
The Board recommends the resolution for the approval of shareholders.
Item No.13: Mr. D.N.Rao, Executive Director (Works), RINL was appointed as Director (Operations) of
RINL by the President of India vide its letter No.1(11)2013-VSP dated July 01, 2014 issued
by Ministry of Steel (MoS) for a period of five years from the date of assumption of charge
of the post, i.e. August 01, 2014, or till the date of his superannuation or until further
orders from the MoS, whichever is earliest. The terms and conditions regulating his
appointment is to be determined by the Government of India.
His brief resume, inter-alia, giving nature of expertise in specific functional area is
provided elsewhere which forms part of this notice.
None of the Directors or Key Managerial Personnel of the Company or their relatives
except Mr. D.N.Rao is in any way, concernedor interested, financially or otherwise, in the
resolution.
The Board recommends the resolution for the approval of shareholders.

106

Item No.14: Based on recommendation of Audit Committee, the Board of Directors of RINL has
approved the appointment of M/s.Narasimha Murthy & Co., as Cost Auditors for the
financial year 2014-15.
M/s.Narasimha Murthy & Co, Cost Accountants, Hyderabad is panel of cost auditors of
RINL. Sri. K. Narasimha Murthy who is principal partner of Narasimha Murthy & Co,
Cost Accountants, having 33 years of professional experience and expertise over 45
Industries on all aspects of Cost control, Cost Reduction and Corporate Management.
He has served in various committees constituted by the GoI and GoAP. He held various
Board level positions in the industry.
Based on Audit Committee recommendations the Board approved the remuneration of
Rs.1,55,000/- (Rupees One Lakh Fifty Five Thousand only) for the financial year 2014-15
plus applicable service tax and other facilities extended similar to financial year
2013-14 i.e (a) Air Fare/s from Hyderabad to Visakhapatnam and back to Partners of the
Audit Firm. (b) II AC Train Fare/s from Hyderabad to Visakhapatnam and back to Audit
Assistants of the Audit Firm. (c) Local Conveyance at Hyderabad (to and Fro Airport) and
at Visakhapatnam i.e providing of AC Car. (d) Hospitality by VSP during the period of their
stay at VSP Guest House as Companys Guests.
As per Rule 14 of Companies (Audit and Auditors) Rules, 2014 read with section 148(3) of
the Companies Act, 2013, the remuneration recommended by the Audit Committee shall
be considered and approved by the Board of Directors and ratified subsequently by the
shareholders.
Accordingly, members are requested to ratify the remuneration payable to the Cost
Auditors for the financial year 2014-15.
None of the Directors or Key Managerial Personnel of the Company or their relatives is
in any way, concerned or interested, financially or otherwise, in the resolution.
The Board recommends the resolution for the approval of shareholders.
Item No.15: The present Articles of Association (AoA) of RINL are based on the Companies Act,
1956 and several regulations in the existing AoA of RINL contain references to specific
sections of the Companies Act, 1956 and some regulations in the existing AoA are no
longer in conformity with the Act.
The Companies Act, 2013 is now largely in force. On September 12, 2013, the Ministry of
Corporate Affairs (MCA) had notified 98 Sections for implementation. Subsequently,
on March 26, 2014, MCA notified most of the remaining Sections. However, substantive
sections of the Act which deal with the general working of companies stand notified.
With the coming into force of the Act several regulations of the existing AoA of RINL
require alteration or modification or deletions in several articles. Given this position, it is
considered expedient to wholly replace the existing AoA by a new set of Articles.
The new AoA to be substituted in place of the existing AoA are based on the Companies
Act, 2013.
Pursuant to Section 14 of the Companies Act, 2013 (Act), the consent of the Members of
the Company by way of a Special Resolution is required for adoption of a new set of
Articles of Association of the Company. Accordingly, this matter has been placed before
the General Meeting for approval of shareholders.
107

The Board of Directors of the Company, therefore, recommends passing of the Special
Resolution by the shareholders as set out in the Notice above.
A copy of the proposed new set of the Articles of Association of the Company would be
available for inspection at the registered office of the Company.
None of the directors, managers, key managerial personnel of the Company and their
respective relatives are in any way interested in the resolution.
Item No.16: In terms of Article 73 of the Articles of Association of RINL, the number of Directors of
the Company shall not be more than sixteen and the Board strength of RINL as on date is
sixteen directors.
As per the provisions of Section 149 of the Companies Act, 2013 which came into force
w.e.f. April 01, 2014, the Company shall have a maximum of fifteen directors only. Provided
the company may appoint more than fifteen directors after passing a special resolution
by the shareholders in the General Meeting.
Accordingly, in order to comply with the latest provisions of the Companies Act, 2013, the
resolution as set out in the notice is proposed for passing by the shareholders.
The Board of Directors of the Company, therefore, recommends passing of the Special
Resolution by the shareholders as set out in the Notice above.
Item No.17: To meet the Capital Expenditure of the Company the Board in its 284thmeeting held on
September 09, 2014 has approved borrowing limits of 9,000 Crs (Rupees Nine thousand
Crores only) for funding the capex, for various ongoing / new projects, which are required
to be funded through debt which includes, inter alia, long term debt from banks and
issue of non-convertible debentures etc.
As on 30thJune 2014 the Company has outstanding funded borrowings for capital
expenditure of 1736 Crs, which were drawn from Banks as long term and short term
borrowings keeping in view the interest rate scenario. Further Company is required to
draw additional borrowings to meet the expenditure for ongoing projects
To tap the debenture market for the purpose of capex borrowings, Company has obtained
ratings of AA from CRISIL and AA+ from CARE rating agencies, for 2000 Crs. There is
an opportunity to the Company to borrow long term funds through issue of NonConvertible Debentures (NCDs) at lower interest rates when the debt markets are
favorable. To meet the requirement of Capital Expenditure, issue of NCDs, upto an amount
of 4,000 Crs, in smaller tranches will benefit the Company which is offered through
private placement. Necessary rating would be obtained for 4000 Crs.
The Companies Act 2013, which is effective from 12thSeptember, 2013 requires previous
approval of the General Meeting for private placement of Securities like NCDs etc., which
was not envisaged in the erstwhile Companies Act, 1956.
Section 42 of Companies Act, 2013, read with rule 14 (2) (a) of The Companies (Prospectus
and Allotment of Securities) Rules 2014, which are effective from 1stApril 2014, requires
prior approval by the shareholders of the Company, by a Special Resolution, in case of
offer or invitation for non-convertible debentures under private placement. It shall be
sufficient if the Company passes a special resolution only once in a year for all the offers
or invitation for such debentures during the year.

108

Since the Company has the approval of Board in place, for borrowings up to 9000 Crs
for capex purposes, which is within the borrowing powers of Board as per Section 179
and 180 (1) (c) of the Companies Act, 2013, it is required to obtain the approval of
shareholders under Section 42 of the Companies Act, 2013, by special resolution, for
raising funds through issue of NCDs, by private placement, as explained above. Such
approval of shareholders will be valid for one year, for issue of NCDs. This would enable
the Company to issue bonds for an amount of 4000 Crs, if required, in one or more
tranches, based on the debenture market conditions.
None of the directors, managers, key managerial personnel of the Company and their
respective relatives are in any way interested in the resolution.
The Board of Directors of the Company, therefore, recommends passing of the Special
Resolution by the shareholders as set out in the Notice above.
Item No.18: Mr. T.V.S.Krishna Kumar, General Manager (F&A), RINL was appointed as Director
(Finance) of RINL by the President of India vide its letter No. 1(1)2014-VSP dated August
25, 2014 issued by Ministry of Steel (MoS) for a period of five years from the date of
assumption of charge of the post, or till the date of his superannuation or until further
orders from the MoS, whichever is earliest. The terms and conditions regulating his
appointment is to be determined by the Government of India.
His brief resume, inter-alia, giving nature of expertise in specific functional area is
provided elsewhere which forms part of this notice.
None of the Directors or Key Managerial Personnel of the Company or their relatives
except Mr. T.V.S.Krishna Kumar is in any way, concerned or interested, financially or
otherwise, in the resolution.
The Board recommends the resolution for the approval of shareholders.

109

Name

110

Ashhok Kumar Jain

Prof Sushil

Prof S.K Garg

Independent Director

Independent Director

Independent Director

DIN

05298647

05300091

06416704

Date of Birth &

Age

June 27, 1951 ; 63 yrs

September 17, 1956; 57 yrs

February 13, 1963 ; 51 yrs

Qualifications

Charted Accountant

Ph.D., IIT Delhi, M.Tech (Industrial Ph.D - Mechanical Engineering

Engineering), B.E (Mechanical
Engineering) from M.I.T.S.,Gwalior

Expertise in
specific
functional Area

He has more than 34

years of experience as
an Income Tax
practitioner. He is a
senior partner in the
Chartered Accountant
firm of M/S.Jain Kapila
Associates, Chartered
Accountants.

He has 24 years of experience as a

professor. He is currently a
professor at Indian Institute of
Technology, New Delhi and is also a
visiting/adjunct professor in various
other institutions. He has authored
publications on topics like Core
Competence and Flexibility in
Strategic Formulation and Flexible
Enterprise for Global Business.

He has vast experience in teaching

and research. He has focused on
manufacturing process and
automation, technology
management, decision science,
production management, materials
management, operations research,
supply chain management,
manufacturing strategy, production
planning and control.

Directorship
held in other
Public
companies

NIL

1) River Engineering Private

Limited.

NIL

Membership/
Chairmanship of
Committees in
RINL

Chairman of Audit
Committee.
Member of Nomination
& Remuneration
Committee and
Stakeholders
Relationship
Committee;
Grievance Redressal
Committee and
Committee of
Independent Directors
(COID)

2) Hospital Services Consultancy

Corporation (India) Ltd.(HSCC)
Chairman of Nomination &
Remuneration and Stakeholders
Relationship Committee.
Member of Audit Committee;
High Power Steering Committee;
and Committee of Independent
Directors (COID)

Chairman of Shareholders/
Investors Grievance Committee;
BSC on CSR Sustainability
Development Committee;
Member of Audit Committee;
BSC on Marketing (BSCOM) and
Committee of Independent
Directors (COID)

Membership/
NIL
Chairmanship of
Committees in
other public
Companies
(other than
RINL)

Chairman of CSR and Sustainability NIL

Committee - HSCC
Member of Audit Committee
HSCC Performance Related Pay
Remuneration Committee - HSCC

No.of Shares
held in RINL

NIL

NIL

NIL

Name

Dr. Sheela Bhide

Independent Director

Lt. Gen (Retd)

Arvind Mahajan
Independent Director

Ajay Kumar Goyal

Rajib Sekhar Sahoo

Independent Director

Independent Director

DIN

01843547

02410540

02726120

02708503

Date of Birth
& Age

June 12, 1948 ; 66 yrs

December 24, 1947 ;

66 yrs

January 2, 1951; 63 yrs

July 01, 1962 ;52 yrs

Qualifications

Ph. D. in International
Trade from the
Institute of
International Studies,
Geneva., Masters
Degree in Economics
from the George
Mason University,
USA., Masters Degree
in Public Policy from
the Harvard
University.

M.Phil, FIE, B.Sc,

PGDBM, Masters
Diploma in Business &
Administration

M.Sc Physics

Charted Accountant

Expertise in
specific
functional
Area

In the course of her

36 year long career,
has held various
posts such as
Chairman-CumManaging Director, in
Trade Promotion
Organization, Ministry
of Commerce,
Additional Secretary
and Financial Advisor,
Ministry of External
Affairs, Additional
Secretary and
Financial Advisor,
Ministry of Defence
and Joint Secretary,
Ministry of Corporate
Affairs of GoI.

He has 40 years of
experience in the
Indian Army in
transforming
operations of a large
scale private sector /
public sector
organization. He is a
multi-faceted
professional with
domain expertise in
the fields of
operational logistics
and supply chain
management,
equipment
management & its
technical repairs and
maintenance
environment and
infrastructure
management,
sanctioning of
environmental
clearances for
infrastructure and
coastal regulation
zone projects, power,
steel, mining
management and
disaster management.
Lieutenant General
Mahajan has been
awarded with the
highest military and
national awards
PVSM, AVSM, VSM.

During his 37 years

career has held various
positions in the railways
commercial functions in
IRAQ for 2 years during
1988-1990. At present
he is a director in MSTC
Limited.

He is a Director in
NTPC Limited,
Hindustan Zinc
Limited and Tehri
Hydro Development
Corporation India
Limited and Bank of
Baroda. He is a
Member of Task Force
on MoU, DPE, GoI for
the years 2011-12 and
2012-13. He is a
Member of the Fee
Structure Committee
for Professional
Educational
Institutions of Odisha
appointed as per the
direction of Supreme
Court of India since
2007. He is the
treasurer of the Indus
Entrepreneur. He has
received various
awards from different
institutions i.e.,
Corporate Odisha
award 2012; Kubera
Shree award 2011 and
Snehi Pratibha
Sanman award 2011.

111

Name

Directorship
held in
other Public
companies

Dr. Sheela Bhide

Independent Director

Lt. Gen (Retd)

Arvind Mahajan
Independent Director

1. Suryoday Micro
Finance Limited.

Konkan Railway
Corporation Limited

Ajay Kumar Goyal

Independent Director
MSTC Limited

2. L&T Metro Rail

(Hyderabad)
Limited.
3. Gati - Kintetsu
Express Private
Limited.

Rajib Sekhar Sahoo

Independent Director
1. Hindusthan Zinc
Limited
2. THDC India Limited
3. Odisha State Civil
Supplies
Corporation Limited
4. IFCI Factors Limited

4. Gati Limited

112

Membership/
Chairmanship
of
Committees
at RINL

Chairman of
High Power Steering
Committee;
Member of
Nomination &
Remuneration and
Stakeholders
Relationship
Committee
BSC on Marketing
(BSCOM) and
Committee of
Independent
Directors (COID)

Membership/
Chairmanship
of
Committees
across all
public
Companies
(other than
RINL)

Suryoday Micro
Finance :
Member of following
Committees :
Audit
Remuneration
Risk Management
Management
L&T Metro Rail
(Hyderabad Ltd):
Member of
Audit Committee

No.of
Shares held
in RINL

NIL

Chairman of
Ethics and HR
Committee
Member of
BSC for Steel
Processing Units
(SPU), Raw Material
Security and Joint
Ventures &
Acquisition
Committee
and Committee of
Independent Directors
(COID)

Chairman of
Grievance Redressal
Committee;
Member of
BSC on CSR
Sustainability
Development
Committee
Ethics and HR
Committee and
Committee of
Independent Directors
(COID)

Chairman of
BSC for Steel
Processing Units
(SPU), Raw Material
Security and Joint
Ventures & Acquisition
Committee;
Member of
Audit Committee;
BSC on CSR
Sustainability
Development
Committee and
Committee of
Independent Directors
(COID)

NIL

MSTC :
Member of
Audit Committee

THDC India Limited:

Member of following
committees
Audit
Remuneration
CSR

NIL

NIL

NIL

Name

P.C. Mohapatra,
Director (Projects)

Dr.G.B.S.Prasad
Director (Personnel)

D.N.Rao
Director (Operations)

T.V.S. Krishna Kumar

Director (Finance)

DIN

06738364

06886500

06914797

06914774

Date of Birth
& Age

January 01,1959;
55yrs

December 04,1956;
57 yrs

July 29, 1957 ; 57 yrs

May 28, 1956 ; 58 yrs

Qualifications

B.E REC, Rourkela

Ph.D HRM.,
M.B.A.,B.L., M.PhilLabour Studies.,

B.E - REC (Warangal)

Charted Accountant,
M.B.A. from Andhra
University., PGDCA.

Expertise in
specific
functional
Area

Mr. P.C. Mohapatra

acquired knowledge
in operation and
maintenance of
Thermal Power Plant
and lead departments
like Medium
Merchant Structural
Mill and Wire Rod
Mill. During his 34
years of experience in
steel and power
industries put
together and have
acquired managing
experience in
projects, operation
and maintenance of
large organizations.
He is well-versed
with the latest
technological
developments in steel
industries.

Dr.G.B.S. Prasad has

been instrumental in
establishing the
human resources
function, policies and
systems at project,
commissioning,
operation and
expansion stage (s) of
our Company. He
played a pivotal role in
Company to turn
around from the brink
of being referred to
BIFR, redesigning
performance
appraisal system,
introduction of value
added designations &
non-unionized
supervisory cadre that
resulted in our
Company being
recognized as the
Best Place to Work
For.He has a vast
experience of more
than 35 years in
Human Resources
Management with
proven track record.

Mr. D.N. Rao joined as a

Management Trainee at
Rourkela, SAIL in the
year 1980 worked for 9
years. During his
service at Rourkela, in
the year 1985 he visited
Germany and acquired
Technical skills in
maintenance of High
Speed Rotating
Equipments. In
November, 1989 he
Joined Visakhapatnam
Steel Plant, RINL/VSP
and served in many
capacities, right from
Deputy Manager to ED
(Works) I/c . He is the
recipient of the
prestigious Jawaharlal
Nehru Award in 1999
for his outstanding
contribution to VSP.

Mr. T.V.S. Krishna

Kumar, contributed his
vast knowledge in
Capital Restructuring
and other areas
helped the company in
its Turnaround from
loses to the growth
path of expanding its
capacities. He worked
through various
positions reaching up
to the level of general
manager (Finance &
Accounts) in 2010. He
was commended by
Management on
several occasions for
his meritorious work
and given
Instantaneous
Recognition Awards
and Commendation
letters.

Directorship
held in other
Public
companies

RINMOIL Ferro Alloys

Private Limited

NIL

OMDC

NIL

Membership/
Chairmanship
of
Committees
at RINL

RINL:

RINL:

RINL:

Member of following
Committees;
BSC for Steel
Processing Units
(SPU), Raw Material
Security and Joint
Ventures &
Acquisition
Committee.
High Power Steering

Member of following
Committees;
BSC on CSR
Sustainability
Development
Committee
Nomination &
Remuneration and
Stakeholders
Relationship

RINL:
Member of following
Committees;
BSC on CSR
Sustainability
Development
Ethics and HR
Committee
Grievance &Redressal
Committee

Member of following
Committees;
Committee of
Management
High Power Steering
Committee (HPSC)
BSC on Marketing
(BSCOM)
Grievance Redressal

113

Name

114

P.C. Mohapatra,
Director (Projects)

Dr.G.B.S.Prasad
Director (Personnel)

D.N.Rao
Director (Operations)

T.V.S. Krishna Kumar

Director (Finance)

Committee (HPSC)
Shareholders/
Investors Grievance
Committee
Committee of
Management

Committee
Ethics and
HR Committee
Shareholders/
Investors Grievance
Committee
Committee of
Management.

Committee of
Management

Committee BSC for

Steel Processing Units
(SPU), Raw Material
Security and Joint
Ventures & Acquisition
Committee.
Shareholders/
Investors Grievance
Committee;
BSC on CSR
Sustainability
Development
Committee

Membership/
Chairmanship
of
committees
across all
public
Companies
(other than
RINL)

NIL

NIL

NIL

NIL

No.of
Shares held
in RINL

100
As a nominee of
President of India

NIL

NIL

100
As a nominee of
President of India

RASHTRIYA ISPAT NIGAM LIMITED

VISAKHAPATNAM STEEL PLANT
VISAKHAPATNAM - 530 031
CIN:U27109AP1982GO1003404
SUPPLEMENTARY NOTICE
All concerned are hereby informed that the following Independent Directors have submitted
resignations from the Board of the Company.
S. No. Name of the Director and DIN No.
1.

Dr. (Mrs) Sheela Bhide, DIN : 1843547

2.

Lt Gen (Retd.) Arvind Mahajan, DIN : 02410540

3.

Shri A.K. Goyal, DIN : 02726120

4.

Shri Rajib Sekhar Sahoo, DIN : 02708503

Consequently the proposals for their appointment as Independent Directors as mentioned in Item
Nos. 7, 8, 9 & 10 of Annual General Meeting Notice dated 23rd Sept. 2014 will not be taken up for
consideration in the Meeting scheduled to be held on Monday, the 29th Sept. 2014 at 3.00 PM at
Visakhapatnam.

P. Mohan Rao
GM (CA) & Company Secretary
Dated : 25th Sept. 2014
Place : Visakhapatnam

115

Vision, Mission and Objectives

VISION
To be a continuously growing world class company,
We shall

harness our growth potential and sustain profitable growth

deliver high quality and cost competitive products and be the first choice of customers

create an inspiring work environment to unleash the creative energy of people

achieve excellence in enterprise management

be a respected corporate citizen, ensure clean and green environment and develop vibrant communities
around us

MIS
SION
MISSION
To attain 20 million tonne (Mt) liquid steel capacity through technological up-gradation, operational
efficiency and expansion; augmentation of assured supply of raw materials; to produce steel at
International Standards of Cost and Quality; and to meet the aspirations of the Stakeholders.

OB
JEC
TIVES
OBJEC
JECTIVES

Stabilise 6.3 Mtof Liquid Steel Expansion by 2014-15 with the mission to expand further in
subsequent phases as per the corporate plan.

Revamp existing Blast Furnaces to make them energy efficient to contemporary levels and in the
process increase their capacity by 0.5 Mt each, thus total hot metal capacity to 7.5 Mt. by 2015-16.

Achieve higher levels of customer satisfaction.

Vibrant work culture in the organisation.

Be proactive in conserving environment, maintaining high levels of safety and addressing social
concerns.

CORE VALUES
Commitment

Customer Satisfaction

Continuous Improvement

Concern for Environment

Creativity & Innovation

116