Shri K. C. DasDirector (Personnel)

Shri V V Venu Gopal RaoDirector (Finance)

Shri D.K. MohantyDirector (Commercial)

(w.e.f. 01.08.2019)

Shri P.C.MohapatraDirector (Projects)(Upto 31.10.2018)

Shri Saraswati Prasad, IASSpecial Secretary & Financial Advisor,

Ministry of Steel (MoS) & Govt. Director

Ms. Ruchika Chaudhry Govil, IRSJt. Secy (Steel).

Ministry of Steel (MoS) & Govt. Director

Shri S K Srivastava, IAS (Retd.)(Upto 12.11.2018)

Shri Ashwini Mehra

COMPANY SECRETARY & COMPLIANCE OFFICER REGD.OFFICE

Administrative Building,Rashtriya Ispat Nigam Limited (RINL),Visakhapatnam Steel Plant (VSP), Visakhapatnam, 530 031.Andhra Pradesh. Tel: (0891) 251 8249; Fax:(0891)251 8249Email: jagadeeshm@vizagsteel.comWebsite:www.vizagsteel.com

STATUTORY AUDITORS

M/s. M. Bhaskara Rao & Co.Chartered Accountants, Visakhapatnam

COST AUDITORS

M/s. K.G.Goyal & AssociatesCost Accountants, New Delhi

SECRETARIAL AUDITORS

M/s. Agarwal S & AssociatesPractising Company Secretaries, New Delhi

REGISTRAR AND SHARE TRANSFER AGENT

KARVY FINTECH PRIVATE LIMITED(Formerly known as Karvy Computershare Pvt. Ltd.)

Plot No. 17 - 24, Vithal Rao Nagar, Madhapur,Hyderabad -500 081, State of Telangana, India

SUBSIDIARIES

Eastern Investments Limited (EIL)The Orissa Minerals Development Company Limited (OMDC)

The Bisra Stone Lime Company Limited (BSLC)

JOINT VENTURE COMPANIES

RINMOIL Ferro Alloys Private LimitedInternational Coal Ventures Private Limited

RINL Powergrid TLT Private Limited

FUNCTIONAL DIRECTORS

BANKERS

State Bank of IndiaBank of BarodaCanara BankAllahabad BankIDBI BankUCO BankUnion Bank of IndiaAxis BankInduslnd BankHDFC BankDeutsche BankICICI BankAndhra BankVijaya BankKotak Mahindra BankYes BankEXIM Bank

BOARD OF DIRECTORSCHAIRMAN-CUM-MANAGING DIRECTOR

Shri P K Rath (w.e.f 22.09.2018) Shri P Madhusudan (Upto 31.05.2018)

GOVT. NOMINEE DIRECTORS

INDEPENDENT DIRECTORS

CS M. Jagadeeshwara Rao(w.e.f. 26.05.2018)

Late Shri Deepak Acharya(Upto 23.04.2018)

Shri P RaychaudhuryDirector (Commercial)

(Upto 31.07.2019)

Shri P K RathDirector (Operations)

(Upto 21.09.2018)

Shri K.K.GhoshDirector (Projects)(w.e.f. 05.09.2019)

Shri Sunil Gupta Shri S K Mishra, IRS (Retd.)Shri K M Padmanabhan(Upto 12.11.2018)

Chairman’s Address 1

A Glance of Financial Results since Inception 3

Financial Highlights (FY 2018-19) 7

Directors' Report 8

Management Discussion and Analysis Report (Annexure-I) 27

Corporate Governance Report (Annexure-II) 33

CEO & CFO Certificate (Annexure-III) 45

Corporate Governance Certificate (Annexure-IV) 46

Annual Report on CSR Activities (Annexure-V) 47

Extract of Annual Return (MGT-9)(Annexure-VI) 54

Conservation of Energy, Technology Absorption, R&D,Foreign Exchange Earnings & Outgo (Annexure-VII) 63

Secretarial Audit Report (Annexure-VIII) 68

Audited Annual Accounts

Standalone Financial Statements

Auditor's Report 72

CAG 'Nil' Comments Report 81

Balance Sheet 85

Statement of Profit & Loss 86

Statement of Changes in Equity 87

Statement of Cash Flows 88

Notes to Standalone Financial Statements 89

Consolidated Financial Statements (CFS)

Notes on Subsidiaries & Joint Ventures 129

Statement on Financial Statements of Subsidiaries & JVs (Form AOC-1)132

Auditor's Report 133

CAG 'Nil' Comments Report 144

Consolidated Balance Sheet 146

Consolidated Statement of Profit & Loss 147

Statement of Changes in Equity 148

Consolidated Statement of Cash Flows 149

Notes to Consolidated Financial Statements 150

NOTICE 208

Contents

CHAIRMAN’S ADDRESSDear Stakeholders,

On behalf of RINL Collective and the Board of Directors, itgives me immense pleasure in welcoming you all to the37th Annual General Meeting of your Company. I take thisopportunity to thank you all for making it convenient toattend the meeting and express my gratitude for yourcontinuous support and patronage. It is indeed an honourand a privilege to share my thoughts and apprise you aboutthe achievements of your Company during the FY 2018-19.The Directors' Report, the Audited Financial Statementsfor the year 2018-19 and the Notice to the Shareholdershave already been circulated and with your permission, Itake them as read.

External Environment:

With global trade actions, the global steel prices were onnegative trajectory for most of the year. As per the JPCReports, the exports of steel from India reduced by 26%compared to the previous year. The reduction of exportswas more pronounced in Non-Flat category, where yourCompany is operating, at 69% compared to the previousyear. At the same time, the growth in consumption of Non-Flat steel products reduced from 10% in the 1st Half of theyear to 3% in the 2nd Half. As a result, the inventory withNon-Flat Steel producers increased by 1.555 Mt in the 2nd

Half, putting continuous pressure on price realisations.

Company's performance

Your Company registered a sales turnover of 20,844Crores (including sale of trial run production of 506.32Crores) with a growth of 25% in value over the previousyear and improved its market share to 8.80% in the yearfrom 8.60% in the previous year. Despite the pressure onprice realisations in the second half of the year, the Netsales realization for the year as a whole registered a growthof 17% over CPLY. With this, the Company could achievean EBITDA of 1802.91 Cr against EBITDA of 346.19 Crin the previous year.

The Company earned a net profit of 96.71 Crs as comparedto a net loss of 1369.01 Crs in the previous year.

Your Company recorded a growth of 11-12% in major areasof production during the year such as Hot Metal, LiquidSteel and Saleable Steel. Best annual performance wasachieved in important Techno-economic parameters, LabourProductivity, Pulverised Coal Injection and Specific EnergyConsumption.

Initiatives were taken to maximize sales of Value AddedSteel Rounds from new Units i.e., SBM and STM and

maximizing Medium Carbon (MC) & High Carbon (HC)grades. High Carbon WRC sales touched new peak with agrowth of 33% over previous year.

Your Company proudly associated itself by supplying steelto projects of national importance viz., Statue of Unity,Polavaram Project, Amaravati Capital City related projects,Mumbai Coastal Road Project, Western Dedicated FreightCorridor, Rohtang Tunnel and Metros at Ahmedabad,Lucknow and Nagpur, living up to its label of being themost trusted and valued partner in the Nation's development.

Road despatches commenced from the Central DispatchYard developed within the plant premises to help inexpediting the loading of increasing number of rakes at theproduction level of 7.3 Million Tonnes of liquid steel.

Sustainability initiatives

The Company continued to pursue various internal driversfor cost reduction in the areas pertaining to raw material,generation of green energy and improvement in operationalefficiency.

Corporate Social Responsibility (CSR)

The Company is committed to socio-economictransformation of people in and around the Plant and Mines.I would like to underline that in spite of incurring successivelosses during the last three financial years, the Companyspent an amount of 10.30 Crores during the year whichstands as a testimony to RINL's Commitment and Concerntowards inclusive growth.

A separate section is provided in Directors' Report regardingCSR activities.

1

Corporate Governance

Corporate Governance is given highest priority as theCompany strongly believes that a high reputation forIntegrity and Ethical conduct is an important CorporateAsset. A separate Report on Corporate Governance alongwith Certificate on Compliances of CG guidelines issuedby DPE and Secretarial Audit report forms part of theDirectors' Report.

Environment Management

During the year, the Company achieved utilization of 148%by utilizing about 2.70 Mt against the generation of about1.81 Mt of BF Slag. In case of LD Slag, about 0.16 Mt wasutilized. Further, about 0.38 Mt of other Metallurgicalwastes, Dusts from Dust Extraction (DE) systems & ElectroStatic Precipatators (ESPs), Sludges from Waste watertreatment plants and Mill Scales, were utilized in the SinterPlant. Waste water of 719.75 MG was recovered by treatingin Waste Water Treatment Plants, Ultra Filtration Unit andRO Plant.

Other Environment Management Initiatives taken up duringthe year include starting of evacuation of pond ash for fillingof low lying areas, Supply of dry fly ash to cement plants,Increase of Lime fines consumption in Sinter Plant anddeployment of Scheme for reduction of Total SuspendedSolids from Effluent Treatment Plant outlet.

Further, projects have been envisaged for processing ofwastes generated during steelmaking to produce 0.15 Mtpaof BOF Briquettes/bricks to Steel Melt Shop and 0.40 Mtpaof Micro Pellets to Sinter Plant, Autoclaved Aerated Concrete(AAC) Block Unit for utilizing 0.20 Mtpa of Fly ash andModification / augmentation of Electro Static Precipitators(ESPs)of Thermal Power Plant for one Boiler to bring downthe emissions below 50 mg/Nm3.

Under Green Visakha Program, the Company has planted429,181 trees since 2011 and is in the process of completingthe balance plantation of 20,819.

Dividend for the year 2018-19

Considering the current financial position of the Company,the Company was not in a position to declare any dividendfor the financial year.

Contribution to the Exchequer

The Company contributed 2,518.12 Crs and 767.37 Crsto the National & State Exchequer respectively in the formof taxes and duties to various government agencies.

Looking ahead

As per World Steel Association (WSA) Short Range Outlook- April 2019, apparent steel consumption has improved by4.9% during 2018 with China registering a growth of 7.9%.The growth is projected to reduce to 1.3% and 1.0% in2019 and 2020 respectively, with expected deceleration inChinese consumption to 1.0% and -1.0% respectively.However, India is projected to register high and stable growthrates of 7.1% and 7.2% in 2019 and 2020 respectively.

The thrust being given by the Government for infrastructureand manufacturing would have positive impact on steelindustry in general and the Company in particular. TheCompany would further gain from productivity and efficiencyimprovements and value growth planned for 2019-20. Someof the focus areas for RINL in this direction are:

. Achieving rated capacity for 6.3 Mt

. Enhancing production of high end Value Added Steel

. Improving sales in high NSR region

. Commercial production from Forged Wheel Plant

. Minimising impact of purchased BF coke byimproving PCI usage and commissioning of Coke OvensBattery N.o - 5

Acknowledgement

To conclude, on behalf of the Board of Directors, Iacknowledge that the achievements in the year have beenmade possible only due to the relentless and dedicatedefforts of the human resources of the Company. I thank allthe Stakeholders, particularly the Ministry of Steel and otherMinistries of GoI, the Government of AP, the Suppliers(Domestic and Overseas), Customers, Ancillary Units,Bankers, the People's Representatives, the DistrictAdministration and various other agencies for the confidenceand trust bestowed upon the Company and the opportunitygiven for its continued growth in achieving various milestonesand I also look forward for their continuous support in future.

Thanking you,

Jai Hind,

Sd/-

(P K Rath)Chairman

Dated 13th September, 2019

Visakhapatnam

2

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Profit / (Loss)before tax

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EmployeeBenefits

Stock(Accretion)/ Decretion

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Turnover

Year

90-9

124

336

279

175

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219

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Trend of Net Worth

Trend of Gross Income

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Raw Materialsconsumed 13730 Crs(65.89%)

DISTRIBUTION OF GROSS INCOME : 2018-19

BREAK UP OF GROSS INCOME : 2018-19

Sale of By Products& Others

825 Crs (3.96%)

Interest Earned 89Crs (0.43%)

Other revenue 393 Crs (1.89%)

InternalConsumption

19 Crs (0.09%)

Sale of Iron & Steel 19513 Crs(93.64%)

Depreciation1058 Crs(5.08%)

Other expensesetc 1411 Crs

(6.75%)

Finance Costl 1278 Crs(6.13%)

Power and Fuel

1148 Crs

(5.51%)

Emp.Benefits incl

Gratuity Liability

2213 Crs

(10.62%)

6

FINANCIAL HIGHLIGHTS

7

S.No Particulars 2018-19 2017-18

A OPERATING RESULTS ( Crs)

Turnover 20844 16618

Turnover (Excl. Trial Run) 20338 14460

Gross Income 20839 14872

Gross Expenditure excl Finance cost 19868 15846

Gross Profit (PBIT) 971 (973)

Profit before Tax (307) (1911)

Net Profit After Tax 97 (1369)

B YEAR END FINANCIAL POSITION ( Crs)

Share Capital 4890 4890

Reserves and Surplus 2462 2331

Capital Employed 12364 8687

Net Worth 7352 7221

Gross Block 30393 27110

Cumulative Depreciation 11376 10327

Net Block 19016 16783

Inventory-Semi-finished/finished goods 3369 2411

C PROFITABILITY AND OTHER RATIOS

(i) Percentage of

Gross Profit to Sales 4.8 (6.7)

Net Profit to Sales 0.5 (9.5)

Gross Profit to Net Worth 13.2 (13.5)

Net Profit to Net Worth 1.3 (19.0)

Gross Profit to Capital Employed 7.9 (11.2)

Net Profit to Capital Employed 0.8 (15.8)

Gross Profit to Share Capital 19.9 (19.9)

Semi/finished goods Inventory to Sales 16.6 16.7

(ii) Ratio of

Current Assets to Current Liabilities 0.6 0.5

Quick Assets to Current Liabilities 0.2 0.1

Sales to Capital Employed 1.6 1.7

DIRECTORS' REPORT

MOU PERFORMANCE

Challenging targets were taken through Memorandumof Understanding (MoU) for FY 2018-19 betweenRINL and Ministry of Steel, Govt.of India (MoS-GoI)

(Unit: '000t)Item 2018-19 2017-18 %GrowthHot Metal 5769 5132 12Liquid Steel 5517 4972 11Finished Steel 4235 3884 9Saleable Steel 5000 4500 11Captive PowerGeneration (MW) 358 316 13

Best Yearly Performance registered in TechnicalParameters

Dear Members,

On behalf of the Board of Directors of the Company, Itake great pleasure in presenting the 37th AnnualReport of the Company for the financial year ended31st March 2019, together with the Audited FinancialStatements, the Statutory Auditors' Report, the SecretarialAudit Report and the Comments on the Accounts by theComptroller and Auditor General of India.

BUSINESS PERFORMANCE

Your Company has registered a record sales turnoverof 20,844 Crores (including sale of trial run productionof 506.32 Crores) with a growth of 25% in value overthe previous year. Despite the impact of global tradeactions during the second half of the year, the NetSales Realization during the year 2018-19 registereda growth of 17% over CPLY. With this, your Companycould achieve an EBITDA of 1802.91Cr as againstEBITDA of 346.19 Cr in the previous year.

Your company has also earned a net profit of 96.71Crs as compared to a net loss of 1369.01 Crs in theprevious year.

The Comparative position of major financial parametersis given here under:-

( in Crores)Particulars 2018-19 2017-18

Turnover including Trial run sales 20844.38 16618.40Earning before finance charges,Tax, Depreciation/ Amortisation(EBITDA) 1802.91 346.19Less: Finance Charges 1277.61 938.33Profit before Depreciation/Amortisation (PBTDA) 525.30 (592.14)Less: Depreciation 1057.59 778.26Profit before exceptional items (532.29) (1370.40)Less: Exceptional items (225.40) 541.05Net Profit before Taxation (PBT) (306.89) (1911.45)Provision for taxation (403.60) (542.44)

Profit/(Loss) after Taxation (PAT) 96.71 (1369.01)

PRODUCTION

Highlights

Growth in Major production areas

Item Unit Value Growth w.r.t.CPLY(%)

Labour productivity tCS/ 489 8 Man year

PCI rate - shop Kg/tHM 59.2 10BF -3 Parameters:- Productivity t/day/cum 2.18 0- Total Fuel rate Kg/tHM 533 0- BF Coke rate Kg/tHM 415 5- PCI rate Kg/tHM 95 26Specific EnergyConsumption Gcal/tCS 5.98 1

DIVIDENDNo dividend has been proposed for the year 2018-19.

SHARE CAPITALDuring the year under review, there were no changesin the equity share capital and authorized capital.

COST REDUCTION MEASURESThe Company's commitment towards cost reductioncontinued during the year 2018-19 with theimprovement in following measures:

(Unit: '000t)Parameter Unit % Impr-

ovementBF Coke yield % of DCC 0.8Crude Tar Yield % of DCC 2Recycling of CoalChemical Plant Waste t/month 46Sized Iron Ore Preparation t/day 15Recycling of CRMP Returns t/month 108Sp. Power consumption Sinter Machine-3 KWh/t charge sinter 3Recycling of LD Slag kg/t of charge sinter 73Recycling of Cal Limefines in Sinter Machine-3 kg/t charge sinter 17SMS:1 LD Gas Yield Ncum/T Crude Steel 10SMS-1 Converter Life Heats 51SMS-2 Converter Life Heats 13Metallic Charge SMS-2 Kg/t crude steel 0.8Power Generation from CPP-2 MW 36

and in spite of sluggish market conditions, theCompany is likely to achieve 'Very Good' rating.

8

MARKETING PERFORMANCE

Global steel demand faced uncertainty from tensionsin the global economic environment. While the strengthof steel demand recovery as seen in 2017 was carriedover to 2018, risks increased. The global steel pricesstarted to reduce, leading to lower imports from Indiaand build-up of inventory with the Indian Steel producersduring the second half of the year.

The overall performance of the Company wasstupendous in the backdrop of external and internalenvironment. The Company clocked best ever salesturnover of 20,844 Crores, with a growth of 25% overprevious year. The Company improved its market shareto 8.80% in the year from 8.60% in the previous year.

The Saleable steel volume in Domestic marketregistered a growth of 14%. The sales in Andhra,Eastern and Western Regions, with freight advantage,registered higher growth of 21%, 23% and 16%respectively. The Sales of Value Added Steel productsalso registered higher growth of 20%. Direct dispatchesfrom Plant to Branches registered a growth of 23%.These initiatives of the company contributed 17% higherNet Sales Realisation over previous year.

The Company supplied steel to various major projectsin India, viz., Polavaram Project, Amaravati Capital Cityrelated projects, Statue of unity, HPCL Mittal Refinery -Bhatinda, Dholera port, Delhi Developing Authority &Indian Trade Promotion Organization Projects, MumbaiCoastal Road Project, Western Dedicated FreightCorridor, PGCIL projects in Maharastra, RohtangTunnel, Kashmir Road / Rail / Tunnel Projects, AIIMS -Bhatinda, IIT campus at Rapur, NIT - AP, Metros atAhmedabad, Lucknow and Nagpur.

In the manufacturing sector, the Company is presentlycatering to various segments like Forging, Wire Drawing,Rolling, Power Transmission, Boiler & Spring Steels.During the year, initiatives were taken to maximize salesof Value Added Steel Rounds from new Units viz.,Special Bar Mill (SBM) and Structural Mill (STM) andmaximizing Medium Carbon (MC) & High Carbon (HC)grades. High Carbon Wire Rod Coil (WRC) salestouched new peak with a growth of 33% over previousyear. Round of 23mm size was developed in SpringSteel Elastic Rail Clip (ERC) category for prestigiousrailway projects. Sales of Spring Steel Rounds for ERC

applications touched a new peak, with a growth of 160%over previous year. Confidence of Original EquipmentManufacturer (OEM) customers' was won by supplyingChromeSteels, Spring Steel Rounds and Flats producedthrough RH degasser. Considering the importance oftraceability in Value Added Steels, initiative was takenduring the year for third party inspection.

RINL is operating through 24 Branch Sales Officesincluding own stockyards & Consignment AgentStockyards under 5 Regional Offices (North, West,South, East & Andhra) for marketing and distributingthe products all over the country. In order to leveragethe potential of on-line sales, RINL has appointede-retailers at Visakhapatnam to service the steelrequirements in the interiors and in the distant locationsas well.

Road dispatches commenced from the Central DispatchYard developed within the plant premises to help inexpediting the loading of increasing number of rakes atthe production level of 7.3 Million Tonnes of liquid steel.A Company owned retail outlet-cum-service center isalso being developed outside the plant premises forcatering to the requirement of local customers.

For promotion of steel usage in semi-urban & ruralareas, promotion campaigns are being carried out in astructured manner. Meets of Architects, Builders &Construction Engineers (ABC Meet) were conductedat Jammu, Bhubaneswar, Coimbatore, Visakhapatnam,Dehradun & Jaipur. Workshops on Good ConstructionPractices (Mason Meet) were conducted at Kanpur.Special Steel Customers Meet & Meeting of OriginalEquipment Manufacturers (OEMs) were conducted atVisakhapatnam. Further, All India Rural Dealers Meetwas conducted at Visakhapatnam.

Western Region Customer Meet at Mumbai

9

ARCHIBUILD 2018, CHANDIGARH Special Steel Customer Meet

Star Performer (Large Enterprise) National Award for the year

2016-17 from EEPC for export excellence. The award was

presented by Sri CR Chaudhary, Honourable Minister of State

for Commerce and Industry at a function held at Hotel Hyatt

REGENCY, New Delhi on 31st May 2018

Masons Meet At Kanpur

10

MATERIAL MANAGEMENT

The Company has taken various initiatives in thedirection of input cost reduction, reduction in oceanfreight, securitization and diversification of critical rawmaterials like coking coal, iron ore, boiler coal.Transparency in procurement activity is promoted andmaintained by implementation of Integrity Pact. QualityManagement Systems are adopted throughcompliance of ISO standards. 5-S standards areadopted for work place management.

The Company has been conducting reverse auctionin all the cases of estimated value of 2 Lakhs. In linewith the Government initiative for encouragingE-Tendering and E-Procurement, the Company hasprocessed more than 98.66 % of its tenders throughSAP/ERP. Further, the Company has startedprocurements on the GeM portal of Government ofIndia, by registering as a Buyer . During the year, atotal of 07 orders of about 5.76 lakhs were placedthrough the portal. Further, a Committee of SeniorOfficers has been working to critically examine theprocess, identify items, recommend the road map andsuggest actions to maximize the procurement valuethrough GeM.

The requirement of coking coal is met through LongTerm Agreement (LTA) with overseas suppliers fromdifferent geographical locations like Australia, USA andNew Zealand.In order to reduce the uncertainties,continuous efforts are made to increase the supplierbase. One industrial trial shipment of new PulverisedCoal Injection (PCI) coal was taken during the year.Lab trials are in progress for one Hard Coking Coal,Soft Coking Coal and PCI Coal brands. Similarly, oneindustrial trial shipment of Imported lime stone in thesize of 40 - 80 mm was taken during the year.

In order to meet shortfall in receipt of Iron Ore fromM/s NMDC, the Company procured about 0.98 Mt ofIron Ore by participating in the auctions conducted forsupplies from Karnataka mines and Orissa MiningCorporation mines. Further, Iron Ore Fines of 0.20Mt was procured through coastal route based on opentenders. Iron Ore Pellets of about 0.15 Mt wasprocured from M/s KIOCL and M/s NMDC-Donimalai.

The Company has a Fuel Supply Agreement withM/s Mahanadi Coalfields for supply of 1.68 Mtpa of

Boiler Coal. In order to meet the increasedrequirement, consequent to the Expansion, theCompany participated in the linkage auction conductedby M/s Singareni Colleries Limited and secured alinkage of 0.30Mtpa. Further, the Company wassuccessful in linkage auction conducted by M/s CoalIndia Limited for 0.262 Mtpa Boiler Coal to be suppliedfrom Talcher mines of M/s Mahanadi CoalfieldsLimited.

The Company is one of the first organizations toimplement Integrity Pact (IP) w.e.f April'2007, inprocurement activities. Major Raw Materials likeImported Coal, Imported Limestone, Iron Ore Fines /Lumps, Calibrated Lump Ore / Directly ReducedCalibrated Lump Ore(CLO/DRCLO), Boiler Coal andMedium Coking Coal etc., are being procured throughLong Term Agreements and MOUs, wherein also IPis being implemented. During 2018-19, value-wise96.43% of contracts are covered with IP, which is inline with Standard Operating Procedure (SOP) ofCentral Vigilance Commission.

The Vendor Base of the Company increased to 3,624by the addition of 170 new vendors during the year.Out of these, 1,702 are MSEs Vendors and 212 areLocal MSEs. The procurement from MSEs hasincreased to 28.65% of total procurement of goodsand services (excluding the goods and services suchas Iron Ore, Coking Coal and Turnkey Contracts forwhich exemption has been granted) from 27.49%during the previous year, against the governmentspecified target of 25%.

The Company has been putting efforts to increase theprocurement from MSEs and registered itself on MSMESAMBANDH Portal. The data comprising annualprocurement targets, monthly and annual procurementdetails from MSEs, Women entrepreneurs, SC-STentrepreneurs, number of MSEs benefitted and otherdata required is being uploaded on a regular basis.The Company is also a registered Member on MSMESAMADHAAN portal. Out of 10 grievances filed duringthe year, replies were uploaded for 8 grievances andone was mutually settled. The balance case gotconverted into a court case.The Company alsoregistered itself on Trade Receivable e-DiscountingSystem (TReDS) platform. All the MSME Vendorsregistered with the Company have also been

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requested to register themselves on TReDS platformso as to process transactions on the platform.

FINANCE

During the year, your Company continued its thruston better Fund Management by raising Commercialpapers for higher values, availing Short term fullyhedged Foreign Currency borrowings(Buyers Credit),Working Capital Demand Loans(WCDL) at competitiveinterest rates.

The financial accounts for the year were certified byStatutory Auditors as well as C & AG auditors with 'NIL'Comments. Cost Accounts for the year were auditedand Cost Audit Report was issued without any adverseremarks.

PROJECTS

With the completion of modernisation of major Units,the focus during the year was on completion of thevarious supporting/auxiliary facilities required forachieving 7.3 Mtpa production and other projects. Themajor projects in progress are as follows:

Coke Oven Battery-5: To meet the additional coke andcoke oven gas requirement at 7.3 Mtpa stage and tofacilitate rebuilding of the existing Coke Oven Batteries1, 2 & 3 progressively. The 14 MW power plant of COB-5 has been commissioned and Heating of the Batterycommenced in Jul' 19 for commissioning of the Batteryafter a period 3 months thereafter.

Central Dispatch Yard: For dispatch of finishedproducts from a centralized location to reduce RailwayRake Retention Time (RRT). Road dispatches havecommenced from the yard in Mar'19.

Augmentation of Water Storage Facilities (SecondReservoir): To provide additional water storage facilityto cater to the enhanced levels of production, waterstorage into the reservoir commenced in Apr' 19 andpumping of water into plant network commenced inJul' 19.

Twin Ladle Heating Furnace: To strengthen thesecondary metallurgy facilities of Steel Melt Shop-2and optimize the process route to achieve ratedcapacity of production, the project is under advancedstage of completion.

14 MW Power Plant of COB - 5

Electrical Distribution Station of COB-5

(8 LBDS-1)

Transfer Car of COB - 5

CDCP of COB - 5

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FORGED WHEEL PLANT

The Forged Wheel Plant, the second Unit of RINL is being set up at Lalganj, Uttar Pradesh to cater to the ForgedWheel requirement of Indian Railways (an import substitution initiative). The Unit is in advanced stage of completion.

Road Dispatches in CDY

Canalling for Water Intake into Second Reservoir (KBR 2)

Hydraulic Room of Forged Wheel Plant Forging Press

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CAPEX FULFILMENT

The Capital Expenditure during the year was 2,131Crs against the plan of 1,400 Crores, with a fulfillmentof 152%.

MINES

Exploration work was completed during the year overthe entire lease area in Jaggayyapeta LimestoneMines, Madharam Dolomite Mines and GarbhamManganese Ore Mines for establishing the reserves.

STRATEGIC INITIATIVES

MOU was entered into with M/s KIOCL for setting up aPellet Plant Project at Visakhapatnam with a capacityof 2.0 Mtpa. Formation of Joint Venture is underprocess.

RESEARCH & DEVELOPMENT (R&D)

R&D in the Company is directed towards innovation,

improvement of processes, development of products

and reduction and recycle of energy and waste. R&D

is presently focusing on present and future

requirements of the Plant to enhance Competitiveness

and Sustainability.

The programs are taken up internally as well as with

external research organizations under collaborative

research. During the year, fourteen new research

projects were taken up and thirteen projects were

continued from the previous year. In the product

development area, projects are taken up for Thermo-

mechanically treated Bars having improved seismic

and corrosion resistance, Boron steel grades and CO2

Welding steel grade.

Six technical papers / posters were presented at four

different National and International Seminars. Two

International journal papers were published in two

International journals. The R&D expenditure during

the year was 19.07 Cr, which works out to 0.09% of

Sales Turnover. The expenditure is expected to

increase after the additional facilities, coming up

adjacent to the present R&D Centre, are completed.

SAFETY

Significant improvement was achieved during the year,

by registering lowest Accident Frequency Rate since

inception. The Frequency Rate to 0.09 from 0.13 in

the previous year, with an improvement of 31% over

the previous year. The Company was conferred with

5 ISPAT Suraksha Puraskar awards for having No

Fatal Accidents during the Calendar Years 2017 &

2018, at the 72nd Joint Committee on Safety, Health &

Environment in the Steel Industry (JCSSI) Meet held

in Feb'19.

Besides conducting various awareness / training

programmes for employees, the safety initiatives during

the year include Comprehensive External Safety Audit

by M/s National Safety Council, Mumbai, Safety

inspection of LPG plant by the officials from IOCL, Night

Surveillance by a team of Safety officers for additional

inspection of vulnerable areas of the Plant and Special

mock drill at Benzol Plant.

Vertical Rolling Machine Crane Testing Activity at Forged Wheel Plant

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ENVIRONMENT MANAGEMENT

Extensive environmental facilities were provided in thePlant, during the inception and also during theexpansion / modernization. In addition to the above,large-scale afforestation has been done, with about53.78 lakh trees planted in an area of 2720 Ha.TheCompany is accredited with Environment ManagementSystem (EMS) standard ISO 14001-2015. To ensurethat Continual Improvement is propagated throughEMS, 78 Environmental Management Programmes(EMPs) were taken up by different departments duringthe year.

Under waste management, the Company achievedutilization of 148% during the year, by utilizing about2.70 Mt against the generation of about 1.81 Mt of BFSlag.In case of LD Slag, about 0.16 Mt was utilizedagainst a generation of about 0.88 Mt. Further, about0.38 Mt of other Metallurgical Wastes, Dusts from DustExtraction (DE) Systems & Electro Static Prespitators(ESPs), Sludges from waste water treatment plantsand Mill Scales , were utilized in the Sinter Plant. Wastewater of 719.75 MG was recovered by treating inWaste Water Treatment Plants, Ultra Filtration Unit andRO Plant.

Other Environment Management Initiatives taken upduring the year include starting of evacuation of pondash for filling of low lying areas, Supply of dry fly ashto Cement plants, Increase of Lime fines consumptionin Sinter Plant and Deployment of scheme for reductionof Total Suspended Solids from Effluent TreatmentPlant outlet.

Further, Projects have been taken up for Processingof wastes generated during steel making to produce0.15 Mtpa of BOF Briquettes/bricks to Steel Melt shopand 0.40 Mtpa of Micro Pellets to Sinter Plant,Autoclaved Aerated Concrete (AAC) Block Unit forutilizing 0.20 Mtpa of Fly ash and Modification/Augmentation of Electro Static Precipitators (ESPs) ofThermal Power Plant for one Boiler to bring down theemissions below 50 mg/Nm3.

Under Green Visakha Program, the Company hasplanted 429,181 trees since 2011 and is in the processof completing the balance plantation of 20,819 trees.

Essay & Poster Competitions for School Children

Skit on WED Theme

Speech by Jt. Chief Environmental Engineer

Prize Distribution to the winners

15

INFORMATION TECHNOLOGY

Digital transformation initiative of e-Office waslaunched during the year, ushering in a new mode ofadministration in line with the National e-governanceprogramme of Govt of India.

Several other applications were launched during theyear which include Swachhata Portal, Sports Portal,RINL Mobile App, Employee Information Kiosk andEnterprise E-mail, Archival & Retrieval Solution, TouchScreen System for Vizag Steel Museum andPerformance Appraisal system (APAR) for E-8 & E9Executives. 7th Operating Committee Meeting on"Automation & Information Technology" was hostedby the Company.

SAP Support Pack was upgraded for Operations underthe GST regime. SAP was enhanced in several frontswhich include deployment of Monthly Sales PlanningSystem. Level-2 process control systems werecommissioned in new and modernized Units. AllServers were updated with OS (MS17-010) Fix tomitigate Wannacry Malware.

HUMAN RESOURCES & INDUSTRIAL RELATIONS

The Industrial Relations scenario was by and largepeaceful. The registered Trade Unions of the regularwork force and registered Unions of contract labourand the Association representing Executives of theOrganization, have contributed significantly fornurturing employee friendly work culture across theOrganization in maintaining harmonious IR climate.RINL has been adopting proactive approach on everypeople related issue and redressed the grievances ofthe employees through a robust Grievance RedressalMechanism. In so far as manpower status isconcerned, the total work force stands at 17,574 ason 31.03.2019. Out of which, 2,891 (16.45%) belongsto Scheduled Caste and 1,301 (7.40 %) belongs toScheduled Tribes. Labour Productivity during the yearwas at 489 t/CS/man-yr which is an increase of 8%over previous year.

A Memorandum of Understanding was signed betweenthe representatives of RINL Management and SteelPlant Employees Union (CITU)-Recognised Union inSep'18 on various issues viz. sanction of InterestSubsidy for eligible loan amount of Car/MotorCycle.Online Gate Pass System was facilitated for

processing of Gate Passes of Contract Labour, toencourage e-paperless working and also reduce thecycle time in issue of Passes.Two (2) additional gateswere provided at BC gate to facilitate entry /exit ofEmployees and Contract workers. Disciplinary Modulein ERP has been made functional, which facilitates HRZones in dealing with Disciplinary matters moreefficiently.

DISCLOSURE UNDER SEXUAL HARASSMENT OF WOMENAT WORK PLACE (PREVENTION, PROHIBITION ANDREDRESSAL) ACT, 2013

Pursuant to the enactment and enforcement of theSexual Harassment of Women at Work Place(Prevention, Prohibition and Redressal) Act 2013, theCompany had formulated a Policy and constituted anInternal Complaint Committee (ICC).During the year,03 programmes covering women employees as wellas women Contract workers were conducted in orderto make them aware about the various provisions ofthe Statute to sensitise them.Training programs onprevention of Sexual Harassment and GenderSensitivity are being organized for existing and newlyrecruited employees on regular basis.

WOMEN EMPOWERMENT

Your Company firmly believes in gender equity and isalso an Equal Opportunity Employer.With a view toenhance the strength of women employees which, atpresent, constitutes around 3.1% of the total workforce(about 6.7% of the Executives and 1.5% of theNon-Executives), several steps have been undertakento place the women employees in diverse andchallenging areas viz. Operations and Projects besidesthe traditional functions viz.HR, Finance and HealthServices.

RINL has been facilitating the women work force to beclosely knit through the local cell of forum of WomenIn Public Sector (WIPS) formed under the aegis ofStanding Conference of Public Enterprises (SCOPE).The Cell has been associating in a number of activitiesorganized for the development of women employees,which includes, programmes on ManagerialDevelopment, Networking & Social skills includingGender Sensitivity programmes for sensitizing itsemployees on issues relating to employment ofwomen.

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During the year, 873 women employees werenominated for various Technical & Managerial trainingprogrammes and also for various competitions,seminars, conferences including WIPS Annual Meet.2 (two) Women employees were nominated forattending seminars abroad.

Women's team of RINL won Par Excellence in 5S workplace management at the National Convention onQuality Concepts-2018 held at Gwalior and First Prizesin 50 Mts Running and Tennicoit doubles at the Districtlevel sports meet conducted by Labour WelfareDepartment, Govt of A.P.

GRIEVANCE REDRESSAL MECHANISM

Your Company has a robust Grievance HandlingSystem comprising both Formal & Informal GrievanceRedressal Mechanism separately for Executives andNon-Executives. By and large, the functioning of theexisting Grievance Redressal Mechanism issatisfactory. Most of the grievances are redressed atthe first stage only within the specified time lines /schedules.

THE PERSONS WITH DISABILITIES (EQUALOPPORTUNITIES, PROTECTION OF RIGHTS ANDFULL PARTICIPATION) ACT, 1995

Ever since the Statute came into force, your Company(RINL) has employed 191 persons with PWD - differentdisabilities and out of those, 10 (Ten) persons wereselected on merit.

Accessibility Audit in public buildings inside the plantand outside the plant premises was conducted in orderto improve and provide the facilities such as provisionof Ramp Ways, Customised Toilets, Auditory Signalsinside elevators and provision of Wheel Chair at theReception for the convenience of the differently abledpersons.

LEGAL AFFAIRS

Utmost care has been taken to deal with all legalmatters including Arbitrations, Court Cases,Coordination with Standing Counsels, dealing withlegal notices including notices from different statutoryand other authorities, Legal Advices etc. During theyear, in 407 matters involving legal questions/issues,legal opinions were given to different departments. Thetotal number of court cases including arbitrationmatters remained at the level of 613. The Companygot favorable verdicts in 81 cases out of the total 105cases disposed of. In the arbitration with large stakesinitiated by M/s Air Liquide, all necessary steps havebeen taken to pursue the case effectively and protectthe interests of your Company.A total of 05 SummaryTrial cases (STC) relating to violation of the provisionsof the Factories Act got closed. The Company gotfavorable awards on 10(ten) Arbitration cases out of 20cases. Updation of court cases in the website of Ministryof Law & Justice i.e., Legal Information Management &Briefing System (LIMBS) is being regularly done.

WELFARE

Apart from fulfilling the statutory welfare measures, yourCompany has been implementing various non-statutorySchemes for its employees to take care of the socialsecurity requirements.Employees Family BenefitScheme, Superannuation Benefit Scheme and GroupMedi-claim Insurance Scheme are in place as part ofSocial Security net for the employees and their families.

For the convenience of employees and as part of effortstowards digitization, online application for VehicleAdvances has been introduced. Salary deduction forDeath Benefit fund process is made through SAP withoutmanual intervention and a single screen sign-on isdeveloped for access to all online HR activities.

For Non-Executives, scheme of interest subsidy forcar loans was introduced.

An amount of 7.40 Cr was spent towards Group Medi-claim Insurance Scheme for the benefit of separatedEmployees and their spouses. This stands as testimonyto RINL's commitment towards the welfare ofemployees even after their separation.An amount of 23.38 Crs was disbursed under Employee Family

Benefit Scheme (EFBS) during the year. RO Plantswere installed in all the 17 canteens.To improvehygiene, maintenance of 40 Toilet blocks in the Plantwas offloaded to M/s Sulabh International. Proposal ison anvil to offload other 840 Toilet Blocks.

17

IMPLEMENTATION OF OFFICIAL LANGUAGEPOLICY

Your Company has always given utmost importancetowards implementation of Official Language Policyand strict compliance of the Rules. The progress ofimplementation and other activities towardspropogation of Hindi were reviewed by SeniorManagement on quarterly basis.

During the year, 141 employees were trained under`Hindi Prabodh/Praveen/Pragya courses'in 2 sessions,1405 employees were trained in `Hindi Workshops'and 280 employees were trained to work on computersin Hindi through `Unicode' conducted at Headquartersand Out station offices.

The efforts of the Company were recognized andawards were conferred, which include First Prize ofRajbhasha Keerti Puraskhar for the FY 2017-18 in BestHouse Magazine Category by Department of OfficialLanguage, Ministry of Home Affairs, GOI, Second Prizeof Ispat Rajbhasha Shield', Rajbhasha KaryanyanSamman by Ministry of Steel, GoI and First prize forthe year 2017-18 by Town Official LanguageImplementation Committee (PSU), Visakhapatnam foreffective implementation of Official Language.

SPORTS

Your Company has always been in the forefront inpromoting excellence in Sports and nurturing Sportstalents within the organization as well as in peripheralareas. Recognizing the efforts of the Company,"Rashtriya Khel Protsahan Puraskhar" Award 2018 inthe Category "Identification & Nurturing of Budding &Young talent" was conferred by the Hon'ble Presidentof India to CMD, RINL at a glittering ceremony atRashtrapati Bhavan on 25.09.2018.

A'Run for Solidarity' in memory of the forty CRPFJawanswho lost their lives in Pulawama was organized on 18th

February 2019 i.e., RINL Formation Day. Around sevenhundred children participated in the event, which wasflagged off by Ms. PV Sindhu, Olympic Silver Medalist inShuttle Badminton and RINL Brand Ambassador in thepresence of CMD, Directors and CVO of the Company.

Sports for Special Children were organized as a CSRActivity for schools in Visakhapatnam &Vizianagaram,with participation of 274 children from 13 Schools.Annual Summer Coaching Camp was conducted from03.05.2018 to 18.05.2018, wherein thirty sevencoaches imparted coaching in 13 disciplines.

Children (wards of employees and from surroundingareas) who regularly practice in Ukkunagaram

Roller Skating won three International Medals andsix National Medals in Roller Skating.

"Rashtriya Khel Protsahan Puraskhar" Award 2018

'Run for Solidarity' in memory of the forty CRPFJawans who lost their lives in Pulawama was

organized on 18th February 2019

18

International Yoga day was celebrated on 21.06.2018,with participation of over 400 persons."Run for Unity"was organized on the occasion of Birth Anniversary ofSardar Vallabbhai Patel on 31.10.2018, withparticipation of more than 500 children.

THE RIGHT TO INFORMATION ACT, 2005

Your Company is one of the first CPSEs to launchonline RTI platform, a leap forward in promotingTransparency and Accountability. This has immenselyfacilitated the Citizens to file their applications within afraction of second. All out efforts have been made toprovide information to citizens under the Statute. Atotal of 1160 requests and 119 appeals were disposedof during this period. All the cases before CentralInformation Commission(CIC) were disposed off withno adverse comments on the Company .

MEDICAL & HEALTH SERVICES

Your Company has been providing specialized medical

care to its employees through a modern 160 bedded

Hospital and 03 (three) Primary Health Centres (PHCs)

located at various places including at Rehabilitation

Colonies and Captive Mines situated at Madharam

(Telangana) and Jaggayyapeta (Andhra Pradesh). In

addition, a full-fledged Occupational Health & Safety

Research Centre and 02 (two) First Aid Centres are

located inside the Plant premises. An OPD exclusively

for ‘Superannuated Employees and Spouses’ has been

operational for better medical services.In addition to the

Medical/Hospital facilities extended, 20 Hospitals have

been empanelled to take care of the critical ailments

for the employees and its dependent family members.

Improved Medical & Health services through "On-line

Medical Referral" system & extended OPD & Blood

sample collection timings, Auto registration etc., led to

drastic reduction of cycle time and greater employee

satisfaction.A full-fledged Blood Bank has been

established. All Statutory inspection and formalities

were completed during the year and awaiting for the

approval of The Drugs Controller General (India),

Central Drugs Standard Control Organization. Andhra

Pradesh State Para Medical Board has renewed the

recognition for Visakha Steel General Hospital (VSGH)

for conducting para medical courses in 5 disciplines

at VSGH.

AWARDS & ACCOLADES

Three(3) QC teams and One '5S' team participated inInternational Convention on Quality Control(ICQC) heldat Singapore. All the QC teams bagged the 'GOLD'award and '5S' team bagged 'SILVER' award. 25(Twenty Five) teams from RINL participated in 32ndNational Convention on Quality Concept(NCQC). Outof them, 23 (Twenty Three) Teams were awarded withPar Execellent Awards, 2 teams won Excellent Awards.

Your Company bagged the INSAAN Award for Excellencein Suggestion Scheme organized by Indian NationalSuggestion Schemes' Association. Besides, 3 (three) ofour employees have won Prime Ministers Shram Virandand one employee won Prime Ministers Shram Sri Award.

CORPORATE SOCIAL RESPONSIBILITY (CSR)

Taking your Company's commitment to socioeconomic transformation of people in and around thePlant and Mines forward, your Company hasundertaken a number of projects / activities andprograms as part of its CSR initiatives. Pursuant tothe enactment of the Companies Act, 2013, yourCompany has formulated a CSR & Sustainability Policyin line with the applicable provisions of the said statuteand Department of Public Enterprises (DPE)Guidelines and has been according due emphasis on'Inclusive Growth and Sustainability'. Board SubCommittee on CSR, headed by an IndependentDirector in terms of Section 135 of the Companies Act,2013, has been regularly monitoring theimplementation of these CSR activities. The AnnualReport on Corporate Social Responsibility (CSR)Activities pursuant to Rule 9 of the Companies(Corporate Social Responsibility) Rules, 2014 formspart of this Annual Report.

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Swachha Bharat - Swachha Vidyalaya Abhiyan

The concept of "Swachh Bharat" has beeninstitutionalized across the organization. "SafaiPakhwada" was organized throughout the yearcovering all Departments in a sustainable manner. TheSwachh Bharat Activities were undertaken inside thePlant premises as well as in the surroundingcommunities. The primary objective is to strengthenthe existing infrastructure and maintain it throughcleanliness drives. Your Company contributed 50.00Lakhs towards Clean Ganga Fund during the year.

Under Swachh Vidyalaya, your Company hadundertaken "Bala Swachhata Jagruthi" initiative forcreating awareness on importance of cleanliness &personal hygiene to the school children. In addition,your Company is also providing financial assistancefor maintenance of toilets constructed by RINL underSwachh Vidyalaya.

Mega Cleaning campaigns were conducted with theactive involvement of Top Management inside the Plantand Township.

Special Swachhata campaigns viz. "Swachhata HiSewa", "Swachh Bharat Pakhwada" "Swachhata Parv"etc. were observed with great enthusiasm andparticipation. To show case the contribution of theCompany towards Swachhta, an exclusive intranetportal christened as "Swachh Bharat @ RINL" wasdeveloped and updated regularly with a view to creatinggreater awareness and inspiration on Swachhta acrossthe Organization. "Swachhata Puraskar" awards wereinstituted to instill competition in implementing SwachhBharat Abhiyan in their departments and to encouragethe innovative work during the Swachhta Campaigns.

CMD RINL Shri PK Rath administering SafetyPledge on Steel Safety Day organized during

Swachhata Pakhwada at RINL

Swachhta Pledge by ED (Works) I/c of the Plant,

GMs, HoDs and Senior Officials during Swachhata-

Hi-Sewa, Mega Cleaning Campaign

EDs, GMs, and HoDs and employees participating in

the Shram Daan at RINL

Central Safety Committee Members participating in

'Shram Daan' during 'Swachhata Pakhwada' at RINL

20

EDs and Employees participating in Shram Daanduring 'Safai Pakhwada' at Projects Division

Employees taking part in Shram Daan collecting plasticwaste from the Parks in Ukkunagaram - a campaign

conducted during Swachhata Hi Sewa at RINL

Campaign during Swachhta Hi Sewa - employeesparticipating along with Director (Finance) RINLtaking part in Shram Daanat Indira Gandhi Park

Students of Visakha Vimala Vidyalaya,Ukkunagaram observing Swachhata Pledge

Shram Daan by the students of ZPH School,Islampeta where more than 500 students participated

A Mega Cleaning Campaign by the students andteachers of Delhi Public School during 'Swachhata

Pakhwada' observed in March 2019 at RINL

21

"Bala Swachhata Jagruti" -Awareness to schoolchildren on Swachhata

Swachhata campaign at Visakha Vimala Vidyalayawhere 1600 students participated in the pledge during

'Swachhata Hi Sewa' mega cleaning campaign

CMD RINL awarding “Swachhta Puraskar” to theBest Performing Departments.

CITIZEN CHARTER

Your Company is totally committed to excellence inpublic service delivery through good governance by alaid down process of identifying citizens, commitmentto them in meeting their expectations, andcommunication to them of key policies in order to makethe service delivery process more effective. The CitizenCharter is made available on the Company's Websitein both English & Hindi versions.

VIGILANCE ACTIVITIES

The Company has been focusing on preventive andproactive Vigilance activities to facilitate a conduciveenvironment for enabling people to work with integrity,impartiality and efficiency, in a fair and transparentmanner, upholding highest ethical standards toenhance reputation and create value for theorganization.

In its endeavor to thrust upon preventive and pro-active vigilance, various activities were carried out likeconducting System Studies on the Procedures beingfollowed in the Company, Intensive examination of HighValue Contracts and Purchase Orders, Examinationof Audit Paras generated through Internal Audits,keeping Surveillance and conducting Surprise Checksin vulnerable areas, Random scrutiny of bills etc.Assistance was provided to the concerned inprocessing of disciplinary cases emanating fromvigilance recommendations. The Department wasinstrumental in identifying new areas/sections wherepotential of IT can be leveraged to improveTransparency and Fairness.

Vigilance Department conducted 313 surprise checksin various vulnerable areas including 40 quality checks,54 Rail /Road re-weighments,186 regular/surpriseinspections in vulnerable areas. Vigilance observationswere brought to the notice of the concerned for takingcorrective actions/improvement in the existingprocedures/ systems, wherever required.

To enhance awareness among employees, VigilanceAwareness Sessions were held. A total of 21 Sessionsinvolving 341 Employees including ManagementTrainees were conducted during the year. VigilanceAwareness Week was observed with the theme"Eradicate Corruption - Build a new India".

A total of 193 complaints were handled and 165 weredisposed. 05 reports on major issues were sent to CVC

and 03 reports to MoS.Disciplinary proceedings against17 employees were disposed of, out of which 15 wereof minor penalty and 02 of major penalty.

VIGIL MECHANISM

Your Company has put in place a Vigil Mechanismcomprising of Whistle Blower Policy and is availableon the Company's Website at link https://www.vizagsteel.com/insiderinl/ Vigil%20mechanism%20 Policy .pdf.

MANAGEMENT DISCUSSION AND ANALYSISREPORT

The Management Discussion and Analysis Reportcovering the Performance and Outlook of the Companyis enclosed at Annexure -I.

CORPORATE GOVERNANCE REPORT

Your Company strives to attain highest standards ofCorporate Governance. In line with the Guidelinesissued by Department of Public Enterprises(DPE),which have become mandatory from May 2010, aseparate section on Corporate Governance is annexedand forms part of the Directors' Report vide Annexure-II.

CERTIFICATION BY THE CEO & CFO

Certificate attested by the CEO & CFO is enclosed,forming part of the Corporate Governance Reportalong with a declaration signed by CMD regardingCode of Conduct for Members of the Board and SeniorManagement vide Annexure-III.

CERTIFICATE ON COMPLIANCE OF GUIDELINES ONCORPORATE GOVERNANCE

A Certificate on Compliance of Guidelines on CorporateGovernance issued by DPE in May 2010, for the year2018-19 given by a Practicing Company Secretary isannexed herewith and forms part of the Directors'Report vide Annexure-IV.

ANNUAL REPORT ON CORPORATE SOCIALRESPONSIBILITY

Your Company has Board approved CSR &Sustainability Policy and a Board Sub Committee onCSR headed by an Independent Director in terms ofSection 135 of the Companies Act, 2013. The AnnualReport on Corporate Social Responsibility (CSR)activities pursuant to Rule 9 of the Companies(Corporate Social Responsibility) Rules, 2014 isenclosed at Annexure -V.

22

EXTRACT OF ANNUAL RETURN

Pursuant to Section 92(3) of the Companies Act, 2013and Rule 12(1) of the Companies (Management andAdministration) Rules, 2014, the extract of AnnualReturn in Form No. MGT-9 for the F.Y. ended on 31st

March, 2019, which has been duly reviewed andcertified by a Practicing Company Secretary, isenclosed at Annexure - VI.

NUMBER OF BOARD MEETINGS

During the year, Seven (7) Board Meetings were heldand the details of which are provided in the CorporateGovernance Report which forms part of this report.

AUDIT COMMITTEE

The details of composition of the Audit Committee areprovided in Corporate Governance Report which formspart of this report. All the recommendations made byAudit Committee were accepted by the Board.

DIRECTORS' RESPONSIBILITY STATEMENT UNDERSECTION 134 (5) OF COMPANIES ACT,2013

Pursuant to the requirements under Section 134(3)(c)& Section 134(5) of the Companies Act, 2013, withrespect to Director's Responsibility Statement,Directors of the Company confirm that:

a) in the preparation of the Annual Accounts, theapplicable Accounting Standards had beenfollowed along with proper explanation relating tomaterial departures;

b) the Directors had selected such accountingpolicies and applied them consistently and madejudgments and estimates that are reasonable andprudent so as to give a true and fair view of thestate of affairs of the Company at the end of thefinancial year and of the profit or loss of theCompany for that period;

c) the Directors had taken proper and sufficient carefor the maintenance of adequate accountingrecords in accordance with the provisions of thisAct for safeguarding the assets of the Companyand for preventing and detecting fraud and otherirregularities;

d) the Directors had prepared the Annual Accountson a "going concern" basis;

e) Not applicable being an unlisted company; and

f) the Directors had devised proper systems toensure compliance with the provisions of allapplicable laws and that such systems wereadequate and operating effectively.

STATEMENT OF DECLARATION OF INDEPENDENCEBY INDEPENDENT DIRECTORS UNDER SUB-SECTION 7 OF SECTION 149 OF THE COMPANIESACT, 2013

Your Company has obtained declarations from eachof the Independent Directors to the effect that theymeet the criteria of Independence as provided underSub-Section 6 of Section 149 of the Companies Act' 2013.

COMPANY'S POLICY ON DIRECTORS'APPOINTMENT AND REMUNERATION

Your Company has constituted the Nomination andRemuneration Committee as required under Section178 (1) of the Companies Act, 2013. Being a CentralPublic Sector Enterprise (CPSE), Director’sappointment and remuneration including criteria fordetermining qualifications, positive attributes,independence of a director and other matters providedunder Sub-Section 3 of Section 178 of the CompaniesAct, 2013 are made/fixed by the Govt.of India. TheAppointment and Remuneration Policy is alsoexempted vide MCA notification No. G.S.R. 463(E)dated 5th June, 2015 for Govt. Companies.

PARTICULARS OF LOANS, GUARANTEES ANDINVESTMENTS UNDER SECTION 186 OF THECOMPANIES ACT, 2013

The above particulars are disclosed in the note no. 6,7, 9 & 14 of the Notes to Accounts annexed to theFinancial Statements and Investment details aredisclosed in note no. 5 of the Notes to Accountsannexed to the Financial Statements.

RELATED PARTY TRANSACTIONS

Particulars of Contracts Under Sub-Section 1 ofSection 188 (Related Party Transactions) Of TheCompanies Act, 2013 are as follows:

The transactions with related parties are disclosed inNote no. 39 & 40 of Notes to Accounts annexed to theFinancial Statements.

23

STATEMENT OF THE COMPANY'S AFFAIRS

The details with regard to the Company's Affairs duringthe year have been elaborated in the preceding parasof this Report.

TRANSFER TO RESERVES

No transfer to reserves was made during the periodunder review.

REPORT ON CONSERVATION OF ENERGY,TECHNOLOGY ABSORPTION, FOREIGNEXCHANGE EARNINGS/OUTGO, etc.

Information required in accordance with the provisionsof Section 134 (3) (m) of Companies Act, 2013 readwith Rule 8 of the Companies (Accounts) Rules, 2014regarding Energy Conservation, TechnologyAbsorption and Foreign Exchange earnings/outgoduring the year are furnished in the Annexure-VII.

ENTERPRISE RISK MANAGEMENT POLICY

Your Company has a Board approved Enterprise RiskManagement Policy and the same has been put onCompany's Website. In terms of the policy, there isseparate implementation agency for identifying the Riskprofiles across the organization covering both Worksand Non Works Departments by an In-house team andmonitoring of the same is done through the ConcernedHeads of the Departments and also review by the AuditCommittee.

ANNUAL EVALUATION OF PERFORMANCE OF THEBOARD, COMMITTEES AND INDIVIDUALDIRECTORS

Ministry of Corporate Affairs (MCA) vide notificationNo.G.S.R. 463(E) dated 5th June, 2015 & G.S.R. 584(E) dated 5th July, 2017 have exempted the above forGovernment Companies.

Key Managerial Personnel (KMP)

CMD:

Shri P.K.Rath has assumed the charge of the post ofthe Chairman-cum-Managing Director, RINL from 22nd

September, 2018.

Company Secretary :

Shri M. Jagadeeshwara Rao was designated asCompany Secretary and Key Managerial Personnelof the Company with effect from 26th May 2018.

OTHER DISCLOSURES

Financials: The Financial summary or highlights areindicated separately in the report in the previouspages.

ESOPS/Sweat Equity Shares: Your Company has notissued equity shares with differential rights/Sweat equityshares/Employee Stock Options.

No change in the nature of business: There is nochange in the nature of business of the Company andit continues to do business in Iron & Steel including ByProducts there from.

Particulars of Employees: Your Company being aGovernment Company, is exempted from theprovisions of Section 197 of the Companies Act, 2013and rules made thereunder vide Ministry of CorporateAffairs (MCA) Notification dated 05.06.2015.

Subsidiaries or Joint Ventures: None of theSubsidiaries or Joint Venture of the Company haveceased to be Subsidiaries or Joint Ventures during theyear.

Material changes and commitments: There are nomaterial changes and commitments, if any, affectingthe financial position of the Company which haveoccurred between the end of F.Y. of the Company towhich the financial statements relates (31st March 2019)and the date of the report.

Significant and Material orders: There are nosignificant and material orders passed by theRegulators or Courts or Tribunals impacting the goingconcern status and Company's operations in futureduring the year.

Cessation:

Name of the Director Up to

Shri P Madhusudan 31.05.2018

Shri P C Mohapatra 31.10.2018

Shri S K Srivastava 12.11.2018

Shri K M Padmanabhan 12.11.2018

Shri P Raychaudhury 31.07.2019

DETAILS OF DIRECTORS OR KEY MANAGERIALPERSONNEL (KMP) WHO WERE APPOINTED ORHAVE CEASED TO BE DIRECTOR(S) DURING THEYEAR AND TILL THE DATE OF REPORT

Directors:

Appointments:

Name of the Director Appointed w.e.f

Shri Pradosh Kumar Rath, CMD 22.09.2018

Shri Deb Kalyan Mohanty 01.08.2019

24

Deposits: Your Company has not invited/accepted anydeposits falling within the purview of provisions of theCompanies Act, 2013 during the year.

INTERNAL CONTROLS & INTERNAL FINANCIALCONTROLS

Your Company has a proper, adequate and efficientsystem of Internal control commensurate with the sizeand nature of its business for achieving the objectivesof the Company by ensuring efficiency in operations,protection of resources, accuracy and promptness infinancial reporting and compliance with the laid downpolicies and procedures along with relevant Laws andregulations. This Internal Control System is an integralpart of the Company's Corporate Governance Policy.Significant features include formulation of Policies,Guidelines, Procedures, Delegation of Powers,Implementation of ERP System, compliance withspecific Laws and other Laws, Budgetary Control,proper functioning of Audit Committee, Committee ofIndependent Directors, CSR, Compliance withAccounting Standards etc.

Internal Auditor:

In the Company, there is a separate Internal AuditDepartment. The Internal Audit is conducted by a crossfunctional team of experienced Chartered Accountants,Cost & Management Accountants, System Analystsand Engineers with diversified experience. The InternalAudit department focuses on Transparency in theSystems and proper / adequate internal controlmechanisms.

Annual Audit Program and the frequency/coverage ofaudits is being approved by the Audit Committee atthe beginning of the financial year. The Internal AuditTeam examines and evaluates varioussystems,procedures and policies of the Company andsuggests useful improvements along with correctivemeasures to be taken by the concerned processowners. The reports containing significant Auditfindings are submitted to the Audit Committee of theCompany for periodical review.During the FY 2018-19, Internal Audit Department raised 547 Audit parasand recovered an amount of 16.70 Crores. Basedon Internal Audit Observations, Process owners takecorrective and preventive actions for strengthening thecontrols and Internal Audit regularly suggestsimprovements in ERP Systems for better operational/financial controls.

SECRETARIAL AUDITORS

Pursuant to the provisions of Section 204 of theCompanies Act, 2013 and the Companies(Appointment and Remuneration of ManagerialPersonnel) Rules, 2014, the Company has appointed

M/s. Agarwal S & Associates, Practising CompanySecretaries, New Delhi as Secretarial Auditors of theCompany for the year 2018-19. The Secretarial AuditReport, confirming compliance to the provisions ofCompanies Act, 2013 and Rules made there-underand the provisions contained in Memorandum andArticles of Association of the Company for the year isannexed and forms part of the Directors' Report videAnnexure-VIII.

During the Secretarial Audit for 2018-19, theSecretarial Auditors have opined that the FunctionalDirectors i.e., Director (Personnel) & Director (Finance)should not be included as Members of the Nomination,Remuneration & Ethics/HR Committee (NRC) and theymay continue as Invitees only.

The Company furnished clarification that the Companycomplied with the principles of constitution of NRC byensuring minimum number of Non-Executive Directors(all of them being Independent Directors). Associatingthe Functional Directors as Members, after havingcomplied with minimum requirements, does not defeatthe very purpose of NRC and instead it is felt that thesame would facilitate the collective responsibility of theCommittee being shared by the Functional Directorsas well in any decision although such decision beingby majority only. Further, the provisions of Sub-Sections (2), (3) & (4) of Section 178 of the CompaniesAct, 2013 have been exempted for Govt. Companiesvide MCA Notification G.S.R.463(E) dt. 05.06.2015.

However, the NRC Committee has been reconstitutedin the Board Meeting held on 31.07.2019 with threeIndependent Directors as members without anyExecutive Directors and thus complied with thesuggestions of Secretarial Auditor along with aforesaidprovisions from that date as follows:

1. Shri S K Mishra - Chairman

2. Shri Sunil Gupta - Member

3. Shri Ashwini Mehra - Member

4. D (F) & D(P) - Invitees

STATUTORY AUDITORS

M/s M. Bhaskara Rao & Co, Chartered Accountants,Visakhapatnam were appointed as Statutory Auditorsof the Company for the year 2018-19 by theComptroller and Auditor General of India (C&AG). TheStatutory Auditors' Report on the Accounts of theCompany for the financial year ended 31st March, 2019is enclosed.

25

MONITORING MECHANISM FOR SUBSIDIARYCOMPANIES & CONSOLIDATION OF ACCOUNTS

The Subsidiary companies of the Company aremanaged by their respective Boards which includesNominee Directors of the Company in the bestinterests of their stakeholders. Your Companymonitors performance of Subsidiary companies, interalia, by placing Minutes of Board Meetings of theSubsidiary companies before the Company's Boardperiodically. The Consolidated Accounts for the yearincorporating the accounts of the SubsidiaryCompanies are enclosed to this report.The StatutoryAuditors' Report on the consolidated financialstatements is enclosed. The Statement containingsalient features of the financial statement ofSubsidiaries /Joint ventures pursuant to first provisoto sub-section (3) of section 129 read with Rule 5 ofCompanies (Accounts) Rules, 2014 is also enclosedin Form AOC-1.

EXPLANATIONS OR COMMENTS BY THE BOARDON QUALIFICATIONS ETC., MADE BY THE AUDITOR& SECRETARIAL AUDITOR

There are no qualifications on the standalone accountsof the Company. Explanation to Secretarial Auditorsobservations is covered under the head SecretarialAuditors.

JOINT VENTURE MECHANISM

The Company is one of the CPSEs as a joint venturepartner in M/s International Coal Ventures (P) Limitedwhich was incorporated for acquiring Overseas Coalassets.

Your Company has also formed Joint VentureCompanies viz., M/s RINLMOIL Ferro Alloys PrivateLimited, a 50:50 Joint Venture Company with MOILfor the purpose of setting up of a Ferro Alloys Unit atBobbili in Andhra Pradesh and RINL Powergrid TLTPrivate Limited (RPTPL), a 50:50 Joint Venturecompany with Power Grid Corporation of India Limited(POWERGRID).

C&AG AUDIT

The Comptroller and Auditor General of India (C&AG)has issued ‘NIL’ Comments on the financial statementsof the Company for the twelth year in succession. Thecopies of the letters of C&AG on Standalone &Consolidated Financial Statements (CFS) areenclosed.

COST AUDIT

Ministry of Corporate Affairs (MCA), Govt. of India, videnotification no. GSR 425(E) dtd. 30th June, 2014 andGSR 01(E) dtd. 31st December, 2014 and G.S.R 695(E)Dated 14th July, 2016 has notified the Companies (Cost

Records and Audit) Rules, 2014 applicable to certaincompanies which are engaged in the production ofgoods or providing services. Such companies arerequired to keep cost records and get its cost recordsaudited in accordance with these rules. The rules arealso applicable to the Company and accordingly theCost Accounting Records are being maintained by theCompany and Cost Audit reports are being submittedby the Cost Auditor.

COST AUDITOR

M/s. K G Goyal & Associates, Cost Accountants, NewDelhi have been appointed as Cost Auditor, under theCompanies Act, 2013 for the year 2018-19. The CostAudit Report for the year 2018-19 is under finalizationand will be filed with Cost Audit Branch, Ministry ofCorporate Affairs within the stipulated time.

ACKNOWLEDGEMENT

The Board of Directors of your Company take thisopportunity to express and acknowledge with deepappreciation, the valuable guidance, assistance,cooperation and support received from theGovernment of India, especially the Ministry of Steeland the Govt. of Andhra Pradesh and wish to place onrecord the cooperation and assistance extended bythe Financial Institutions, the Company's ValuedCustomers & Suppliers, Railways, Bankers, Auditors,Contracting agencies, Business Associates,Consultants, other officials of Ministries of Union Govt.and various other Ministries of the State Govt., thelocal District Administration and Law & Orderauthorities during the year under review. The Boardof Directors also wish to place on record itsappreciation for the sincere efforts and hard work putin by all the employees of the Company, Trade Unionsand Executive Association during the year.

For and on behalf of the Board of Directors

Sd/-

(P K Rath)

Chairman-cum-Managing Director

Visakhapatnam

Dated:19/08/2019

26

MANAGEMENT DISCUSSION AND ANALYSIS REPORT (MDA) FOR THE YEAR 2018-19

F - Forecast Source: WSA SRO - Apr '19

* 2.1% (after adjusting for China induction furnace closures)

China's deceleration, a slowing global economy, and uncertainty surrounding trade policies and the political situation in manyregions suggest a possible moderation in business confidence and investment. However, India is projected to register highand stable growth rates of 7.1% and 7.2% in 2019 and 2020 respectively.

1.2 Indian Economy:

GDP growth in the year was at 6.8% against 7.2% in the previous year. The overall GVA growth was 6.6% against 6.9% in theprevious year, continuously reducing from 7.7% in the 1st Quarter to 5.7% in the 4th Quarter. The GVA in Manufacturing andConstruction sectors registered higher growth rate of 6.9% and 8.7% respectively, during the year.

1.0 INDUSTRY STRUCTURE AND DEVELOPMENTS

1.1 Developments in World Steel:

As per World Steel Association(WSA) Short Range Outlook April 2019, apparent steel consumption improved by4.9% during 2018 with China registering a growth of 7.9%. The growth is projected to reduce to 1.3% and 1.0%in 2019 and 2020 respectively, with expected deceleration in Chinese consumption to 1.0% and -1.0% respectively.

Region/Country wise apparent steel consumption and YoY % growth is given below:

Annexure - I to Directors' Report

Region Million Tonnes Y-o-Y Growth Rate (%)

2018 2019(F) 2020(F) 2018 2019(F) 2020(F)

World 1 712.1 1 735.0 1 751.6 4.9* 1.3 1.0

China 835 843.3 834.9 7.9 1.0 -1.0

India 96 102.8 110.2 8.3 7.1 7.2

Emerging and Developing

economies excl. China 463.2 476.5 498.6 2.5 2.9 4.6

Developed economies 414 415.2 418.1 1.8 0.3 0.7

27

Indian Steel Scenario:Apparent consumption of Finished Steel in India registereda lower growth of 7.5% during the year against 7.9% in theprevious year. At the same time, the exports reduced by34% to 6.361 Mt from 9.619 Mt in the previous year, due totrade actions and slump in global steel prices. This led tobuild-up of inventory with Indian Steel Producers, in spiteof lower growth in production, at 4.4% against 6.8% in theprevious year.

Iron Ore prices rose steeply during the period Apr’18 – Nov’18due to closure of some mines in Odisha. The base price ofIron Ore Fines from NMDC increased by 27% from

2,560/t to 3,310/t during this period. Further, to meetthe shortfall of receipt from NMDC, the company had toprocure Iron Ore from other sources, through auction andtender routes. There was an average increase of 27% duringthe year over previous year.

Imported Coking Coal prices surged during the periods Aug-Dec’18 due to supply constraints from Australia.

2.0 STRENGTHS AND WEAKNESSES

The few strengths and weaknesses of the company(not an exhaustive list) are placed below:

Finished Steel Production: 94,452 (2017-18) and 98,566 (2018-19)

In case of Non-Flat category, the reduction in Exports waseven higher at 69%. The Exports reduced to 0.705 Mtfrom 2.258 Mt from the previous year. As a result, therewas build-up of inventory with Indian Steel Producers byan extent of 2.157 Mt.During 2018-19 H2, steel prices softened considerably.However, the raw material prices ruled high, impacting thefinancials.

Further, there was depreciation of Indian Rupee againstthe US Dollar to an average of 69.83 during the yearfrom an average of 64.50 in the previous year.

Weaknesses

• Lack of CaptiveMines for Iron Oreand Coal

• Single LocationCompany and onlyLong Products,exposed to cyclicmarkets.

• High Equity base• Lack of investible

surplus

Strengths• Shore based location• Well established

marketing andcustomer network inIndia

• Availability of Land• Image as quality

producer.• Committed

manpower• Strong

environmental andSocial commitments

28

3.0 OPPORTUNITIES AND THREATS

Threats• Increased

competition.

• Volatility in supplyand prices of cokingcoal

• Predominantsecondary sector inlong products.

Opportunities

• Export of productsto developingEconomies

• Availability of newfacilities

• Enhancedproduction potential

• Secondarymetallurgy for HighEnd Value AddedSteels

4.0 SEGMENT-WISE OR PRODUCT-WISEPERFORMANCE

Details in respect of the above item have already beencovered in the Directors' Report which may, kindly bereferred to.

5.0 OUTLOOK FOR THE COMPANY IN 2019-20India is projected to maintain a growth of 7.1% in 2019, thehighest among the major steel producers of the world. Thethrust being given by the Government for infrastructure andmanufacturing would have positive impact on steel industryin general and the Company in particular. The Companywould further gain from productivity and efficiencyimprovements and value growth planned for 2019-20. Someof the focus areas for RINL in this direction are:. Achieving rated capacity for 6.3 Mt

. Enhancing production of high end Value Added Steel

. Improving sales in high NSR region

. Maximizing conversion of semis

. Commercial production from Forged Wheel Plant (FWP)

. Minimising impact of bought out BF coke byimproving PCI usage and commissioning of Coke

Oven Battery-56.0 RISKS & CONCERNSVolatility in raw material prices, increased competition,inbound and outbound logistic issues with highervolumes of production and sales, higher volumes ofsemis, liquidity crunch in markets are some of the risksthat the company is likely to face during next year.7.0 INTERNAL CONTROL SYSTEMS AND THEIR

ADEQUACY

Details in respect of the above item have already beencovered in the Directors' Report which may kindly bereferred to.

8.0 DISCUSSION ON FINANCIALPERFORMANCE WITH RESPECT TOOPERATIONAL PERFORMANCE

8.1 Financial overview

The Company registered sales turnover of 20,844crores (including sale of trial run production of 506.32crores) with a growth of 25% in value over the previousyear. The Net Sales Realization during the yearregistered a growth of 17% over CPLY.

8.2 Financial Performance

8.3 ANALYSIS OF THE FINANCIALPERFORMANCE OF THE COMPANY

8.3.1 Revenue from Operations

Particulars F.Y 2018-19

( in Crs)

F.Y 2017-18

( in Crs)

% Inc/(Dec)over previous

yearRevenue FromOperation 20492.03 14607.18 40Sales Turnover(Including TrialRun) 20844.38 16618.40 25PBDIT 1802.91 346.19 421Profit before Tax(PBT) beforeexceptional items -532.29 -1370.40 (61)Exceptional items -225.40 541.05 (142)Profit beforeTax (PBT) -306.89 -1911.45 (84)

* Sales turnover for the period upto 30th June' 2017includes excise duty which is discontinued w.e.f.1st July'2017 upon implementation of GST.

Particulars F.Y 2018-19

( in Crs)

F.Y 2017-18

( in Crs)

% Inc/(Dec)over previous

yearTotal Sales

Turnover* 20844.38 16618.40 25

Sale of trial run

production

included above 506.32 2158.73

Sales turnover

excluding trial

run production 20338.06 14459.67 41

Other operating

revenue 153.97 147.51 4

Revenue from

operation 20492.03 14607.18 40

29

8.3.4 Contribution to Exchequer

The Company contributed 2518.12 Crs and 767.37 Crs to the National & State Exchequer

respectively in the form of taxes and duties tovarious government agencies.

8.3.5 Borrowings

8.3.2 Other income

ParticularsF.Y 2018-19

( in Crs)

F.Y 2017-18

( in Crs)

% Inc/(Dec)over previous

year

Interest Earned 88.61 79.20 12

Other Non-operating

Income 258.03 185.95 39

Dividend 0.04 0.09 (56)

Other Income 346.68 265.24 31

8.3.3 Expenditure (excluding trial run)

ParticularsF.Y 2018-19

( in Crs)

F.Y 2017-18

( in Crs)

% Inc/(Dec)over previous

year

Cost of

materials

consumed 13730.25 8601.05 60

Changes in

inventories of

semi-finished /

Finished goods (958.44) (186.34) 414

Excise Duty 0.00 262.80 (100)

Employees'

benefits 2438.28 2343.60 4

Finance Costs 1277.61 938.33 36

Depreciation &

Amortisation 1057.59 778.26 36

Other

Expenses 3825.71 3505.12 9

Total 21371.00 16242.82 32

ParticularsF.Y 2018-19

( in Crs)

F.Y 2017-18

( in Crs)

% Inc/(Dec)over previous

year

Secured Loans 14975.63 10156.28 47

Unsecured Loans 4615.95 6519.20 (29)

Total Loans

(Long & Short Term) 19591.58 16675.48 17

8.3.6 Property, Plant and Equipment

ParticularsF.Y 2018-19

( in Crs)

F.Y 2017-18

( in Crs)

% Inc/(Dec)over previous

year

Net Block

Tangible 19013.64 16772.14 13

Intangible 2.71 10.49 (74)

Capital Work-in-Progress 3853.75 5224.66 (26)

Analysis of Expenditure for the F.Y 2018-19 (incl. Trial Run)

30

8.3.9 Initiatives taken by the Company

RINL has completed modernisation of Major Units andachieved 11% growth in saleable steel production.Further, the Company pursued various cost reductioninitiatives and the achievements include:

l Improvement in Labour Productivity: TheLabour Productivity improved to 489 tCS/man/yearwith a growth of 8% over previous year.

l Leveraging Technology: Pulverised Coal Injectionimproved to 59.2 kg/tHM from 53.6 kg/tHM in theprevious year.

8.3.7 Non-Current Asset & Non-Current Liabilities

ParticularsF.Y 2018-19

( in Crs)

F.Y 2017-18

( in Crs)

% Inc/(Dec)over previous

year

Non-Current Liabilities

Financial

Liabilites

Borrowings 9309.26 6545.16 42

Other Financial

Liabilties 96.38 25.90 272

Provisions 1052.47 1012.97 4

Other non

current liabilities 13.70 82.39 (83)

Non-Current Assets

Financial Assets

Investments 741.49 741.48 0

Loans 142.82 222.29 (36)

Other financial

assets 24.14 23.28 4

Deffered Tax

Assets (Net) 1173.53 778.14 51

Other Non-

Current Assets 85.31 119.34 (29)

8.3.8 Current Assets, Current Liabilities

CURRENT ASSETSInventoriesSemi Finished/Finished goods 3369.21 2410.77 40Raw materials 2978.56 2139.81 39Stores & Spares 1141.34 1078.09 6Total Inventories 7489.11 5628.67 33Financial AssetsTrade ReceivablesGross receivables 1156.42 1016.81 14Less: Provision forTrade receivables 26.04 20.83 25Net Receivables 1130.38 995.98 13Cash & Bank balances 121.43 51.9 134Other Financial assets 529.17 471.29 12Other tax assets (net) 0.00 0.01 (100)Other Current Assets 893.83 684.53 31Total Current Assets 10163.92 7832.38 30CURRENT LIABILITIESFinancial LiabilitiesBorrowings 9721.02 9221.27 5Trade payables 1661.62 1197.57 39Other financial liabilities 4702.69 5253.14 (10)Derivatives 0.00 0.60 (100)Provisions 639.31 668.32 (4)Other current liabilties 652.58 495.92 32Total Current Liabilities& Provisions 17377.22 16836.82 3

F.Y 2018-19( in Crs)

F.Y 2017-18

( in Crs)

% Inc/(Dec)over previous

yearParticulars

l Benchmarking: In the direction of achieving globalbenchmarks, improvement of 1%, 3% and 1%respectively was achieved in Specific EnergyConsumption, Specific Water Consumption andCarbon Emission over previous year.

l Maximization of power generation from wasteenergy: Power generation from Power Plant-2utilising waste gases of BF increased to an averageof 104 MW in the year from 76 MW in the previousyear.

31

9.0 MATERIAL DEVELOPMENTS IN HUMAN RESO-URCES, INDUSTRIAL RELATIONS FRONTINCLUDING NUMBER OF PEOPLE EMPLOYED

Details in respect of the above item have already

beencovered in the Directors' Report.

10. 0 ENVIRONMENTAL PROTECTION AND CONSE-RVATION, TECHNOLOGICAL CONSERVATION,RESEARCH AND DEVELOP MENT, RENEWABLEENERGY DEVELOPMENTS, FOREIGNCONSERVATION

Details in respect of the above item have already

been covered in the Directors' Report.

11.0 CORPORATE SOCIAL RESPONSIBILITY

Details in respect of the above item have already

been covered in the Directors' Report.

Parameter Unit % Improvement

BF Coke yield % of DCC 0.8

Crude Tar Yield % of DCC 2

Recycling of Coal Chemical Plant Waste t/month 46

Sized Iron Ore Preparation t/day 15

Recycling of CRMP Returns t/month 108

Sp. Power consumption Sinter Machine-3 KWh/t charge sinter 3

Recycling of LD Slag kg/t of charge sinter 73

Recycling of Cal Lime fines in Sinter Machine-3 kg/t charge sinter 17

SMS:1 LD Gas Yield Ncum/T Crude Steel 10

SMS-1 Converter Life Heats 51

SMS-2 Converter Life Heats 13

Metallic Charge SMS-2 Kg/t crude steel 0.8

Power Generation from CPP-2 MW 36

l Cost reduction initiatives: Cost Reduction measures have been given further thrust resulting in the improvements as below:

l Substitution with cheaper raw materials: Continuous efforts are being taken for introducing new coals, which

have the potential to increase the flexibility and reduce the cost.

l Improvement of realisations through Value Added steel: There was significant improvement in the High

end value added Steel production by around 29% over CPLY. The percentage of high end value added steel in

the total saleable steel was increased to 19.4% from 16.7% during the previous year.

12.0 CAUTIONARY STATEMENT

Statements / Data which do not relate to the

Company and are used / made in this report are

from sources which are considered reliable and

Company cannot be held responsible for its

authenticity. Further, Statement in the

Management Discussion and Analysis,

describing the Company's objectives, projections

and estimates are forward looking statements

and progressive within the meaning of applicable

Laws and Regulations. Actual results may vary

from those expressed or implied, depending

upon economic conditions, Government Policies

and other incidental factors.

***

32

REPORT ON CORPORATE GOVERNANCE

The details of the Board of Directors as on 31st March, 2019 were as follows:

2.2 Board Meetings

During the financial year ended 31st March, 2019, Seven (7) Board Meetings were held on following dates:

S.No. Board Meeting No. Date Board Meeting No. Date

1 312 06.04.2018 316 29.10.20182 313 29.05.2018 317 06.12.20183 314 16.08.2018 318 08.03.20194 315 06.09.2018

1.0 Company's Philosophy

Corporate Governance at RINL is a continuous journeyin achieving its goals and the Company stronglybelieves that a high reputation for Integrity and Ethicalconduct is an important Corporate Asset. It assuresthe Employees, Customers, Vendors, Regulators,Community neighbors and Shareholders that theCompany will deal and take care of them honestly andfairly thereby everyone would benefit from being a partof the Company that has built reputation over the yearsfor honorable and principled actions. The philosophy ofthe Company in relation to Corporate Governance is toensure Transparency, Accountability, Fairness,Integrity, Disclosures and Reporting that conforms fullyto the Laws, Regulations, Guidelines, etc. and topromote ethical conduct throughout the organization.The Company is committed in conforming to the higheststandards of Corporate Governance in the Country by

putting in place appropriate systems, procedures andInternal Control Mechanisms. It recognizes that eachMember of the Board owes his/her first duty forprotecting and furthering the interests of the Companyand the Company confirms the compliance of theguidelines issued by DPE on Corporate Governanceand the details of which are given below:

2.0 Board of Directors

2.1 Composition of Board

RINL follows DPE Guidelines relating to the compliancewith the conditions of Corporate Governance. As on31st March, 2019, the total number of Board of directorswas Nine (9) comprising of Chairman-cum-ManagingDirector (CMD), Three (3) Whole time FunctionalDirectors, Two (2) Part-time Official Directors (i.eGovernment Nominee Directors) and Three (3) Part-time Non-Official Directors (i.e Independent Directors).

Annexure - II to Directors’ Report

Functional Directors

1) Shri P K Rath Chairman - cum - Managing Director

2) Shri P Raychaudury Director (Commercial)

3) Shri K. C. Das Director (Personnel)

4) Shri V V Venu Gopal Rao Director(Finance)

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

5) Shri Saraswati Prasad, Special Secretary & Financial Advisor, MoS, Govt. of India.

6) Smt. Ruchika Chaudhry Govil, Joint Secretary (Steel), MoS, Govt.of India.

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

7) Shri S K Mishra

8) Shri Sunil Gupta

9) Shri Ashwini Mehra

S.No.

5

6

7

33

$ Cessation of directors on superannuation. # Completion of Tenure*** Position of Membership of Directors as on 31.03.2019 in Corporate Governance related committees viz., Audit Committee,CSR & Sustainability Committee, Nomination and Remuneration & Ethics / HR Committee,Shareholders Investors Grievance Committee are only considered and reflected above.** The respective persons were not a Director / ceased to be a Director of the Company as on the date of last AGM.Note: 1) The particulars of Memberships in Board Sub-Committees in RINL and in other Companies are not given in respect

of Directors namely Shri P Madhusudan, Shri P C Mohapatra, Shri S K Srivastava and Shri K M Padmanabhan whoceased to be directors of the Company during the year.

2) Few directors have participated in the Board Meetings through video conferencing. Company has taken necessarysteps to record the proceedings of the meetings held through Video conferencing.

Details of the number of Board Meetings attended by Directors, attendance at the last Annual General Meeting(AGM), number of other directorships, number of Board Sub-Committees and positions as Chairman / Member inRINL etc., during the year 2018-19 were as follows:

No. of No.of Attendance No. of other No. of RINL Board No. of BoardCategory Board Board at last Directorships Sub-Committee Sub-Committees

S. Name & Meetings Meetings AGM held held as on Chairman/Member Chairman /No Designation of the held during attended on 31.03.2019 as on 31.03.2019 Member/ in other

Director(s) respective 29.09.2018 *** companies as ontenure of 31.03.2019***Director Chairman Member Chairman Member

Functional Directors1) Shri P K Rath

CMD (w.e.f.22.09.2018)Director (Operations)(upto 21.09.2018) 7 7 Yes 5 - - - -

2) Shri P RaychaudhuryDirector (Commercial)CMD Additional Charge(01.06.2018 to 21.09.2018) 7 7 Yes 3 - - - -

3) Shri K C DasDirector (Personnel) 7 6 No 3 - 3 - -

4) Shri V V Venu Gopal RaoDirector (Finance) 7 7 Yes 3 - 3 - -

5) Shri P.MadhusudanCMD ($)(upto 31.05.2018) 2 2 ** - - - - -

6) Shri P.C.MohapatraDirector (Projects) ($)(upto 31.10.2018) 5 4 Yes - - - - -

Part-time official Directors (i.e Government Nominee Directors)7) Shri Saraswati Prasad

SS&FA (MoS) 7 7 No 4 - - - -8) Smt Ruchika Chaudhry Govil

Jt .Secretary (Steel) 7 6 No 1 - - - -Part-time Non Official Directors (i.e Independent Directors)

9) Shri S K Mishra, IRS(Retd) 7 6 No - 1 2 - -10) Shri Sunil Gupta 7 7 Yes 2 1 2 - -11) Shri Ashwini Mehra 7 7 No 2 2 2 - -12) Shri S K Srivastava, IAS (Retd.)

(Upto 12.11.2018) (#) 5 5 No - - - - -13) Shri K M Padmanabhan

(Upto 12.11.2018) (#) 5 5 Yes - - - - -

34

2.3 Board Meeting Procedure

The Company Secretary in consultation with theChairman-cum-Managing Director calls for ameeting of the Board by giving not less than sevendays' notice in writing to every Director at hisaddress registered with the Company. The BoardAgenda is circulated to the Directors as per thetimelines indicated in Secretarial Standards.

The Members of the Board have access to allrelevant information of the Company and itsperformance and are free to recommend inclusionof any matter in the agenda for discussion. In caseof need, the Senior Management is invited toattend the Board Meetings to provide additionalinputs relating to the Items being discussed and /or to give presentation on each item to the Board,as per requirement.

The Board meets regularly and is responsible for theproper direction and management of the Company.

2.4 Role of the Company Secretary in overallgovernance process

The Company Secretary being a Key ManagerialPerson (KMP) plays a vital role in ensuring thatthe Board procedures are followed and regularlyreviewed. The Company Secretary ensures thatall relevant information, details and documents aremade available to the Directors and SeniorManagement on need basis for effective decision-making at the Meetings. The Company Secretaryis primarily responsible to ensure compliance withapplicable statutory requirements under theCompanies Act, 2013 and rules made thereunderor any enactment thereof and is the interfacebetween the Management and RegulatoryAuthorities for governance matters. All theDirectors of the Company have access to theadvice and services of the Company Secretary.

2.5 Information placed before the Board ofDirectors

The information under the following heads isusually presented to the Board of Directors of theCompany either as part of the Agenda papers oris tabled / presented during the course of theBoard meetings:

. Annual operating plans and budgets and anyupdates.

. Capital budgets and any updates.

. Quarterly results for the company and its operatingdivisions or business segments.

. Minutes of meetings of Audit Committee and otherBoard Sub-Committees.

. Minutes of Board Meetings of SubsidiaryCompanies.

. Details of any Joint Venture or R&D project orTechnical collaboration agreement requiringapproval of Board of Directors.

. Sale of material, nature of investments,subsidiaries, assets, which is not in normal courseof business.

. Action Taken Report on matters desired by theBoard.

. Disclosure of Interest by Directors aboutdirectorships and Committee positions occupiedby 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 andpractices and reasons for the same.

. Compliance with the provisions of Companies Act,2013 and rules made thereunder.

. Any other information required to be presented tothe Board either for information or approval.

2.6 Role of Independent Directors

The Independent Directors play an important rolein deliberations of the Board and Board Sub-Committee meetings and bring to the Companytheir expertise in various fields viz engineering,finance, management, law and public policy. TheBoard has established various Sub-Committeessuch as Audit Committee and CSR Committee etcwith adequate representation of IndependentDirectors in line with the Companies Act, 2013 andRules made thereunder and the requirements ofDepartment of Public Enterprises (DPE) Guidelineson Corporate Governance for CPSEs. The

35

Company has also constituted Nomination andRemuneration Committee to deal with variousmatters as per Section 178 of the Companies Act,2013 including Performance Related Pay headedby an Independent Director.

A Board Sub-Committee for Corporate SocialResponsibility & Sustainability headed by anIndependent Director has been constitutedpursuant to the provisions of Companies Act, 2013and DPE guidelines, for proper and periodicmonitoring of CSR activities.

2.7 Meetings of Independent Directors

A Board Sub Committee has been set upcomprising all the Independent Directors vizCommittee of Independent Directors (COID) whichfacilitates the Independent directors to meet anddiscuss on issues without the presence of Wholetime (Executive) Directors or ManagementPersonnel. During such meetings the IndependentDirectors discuss matters pertaining to the affairsof the company. For the FY 2018-19, 1(One) suchmeeting was held on 29th October, 2018. All theFive (5) Independent Directors have attended themeeting.

Declaration by Independent Directors

All Independent Directors have furnisheddeclaration as required under Section 149(6) readwith 149(7) of the Companies Act, 2013 and asper the requirement under the DPE guidelines.

2.8 Selection of New Directors

The Chairman-cum-Managing Director, FunctionalDirectors, Part-time Official Directors (i.eGovernment Nominees) and Part-time Non-officialDirectors (i.e Independent Directors) areappointed / nominated by Government of India.

2.9 Terms & Conditions of Board Members,Retirement Policy and Evaluation of theBoard Members

The appointment of Chairman-cum-ManagingDirector and Functional Directors of the companyis made by the President of India from time to timeon such terms and conditions like remunerationpayable, tenure etc, and they are appointed for aterm of five (5) years or till the date of theirsuperannuation whichever is earlier.

Two Part-time Official Directors i.e. Govt. Directorsviz. Joint Secretary (Steel), Ministry of Steel andSpecial Secretary & Financial Advisor, Ministry ofSteel have been nominated by the Governmentof India on the Board of RINL and they continueto hold such office at the discretion of theGovernment of India and is co-terminus with theirposition in the Ministry of Steel.

The Company being a Government Company, theprovisions of Section134(3)(e)and(p),149(6)(a)and (c), 152(5) and 178(2), (3) and (4) of theCompanies Act, 2013 with regard to appointment,performance evaluation etc, have been exemptedby Government of India, Ministry of CorporateAffairs vide Gazette notification dated 05.06.2015.

The provisions of sub-paragraph (2) and (7) ofparagraph II, paragraph IV, clauses (a) and (b) ofsub-paragraph (3) of paragraph VII and paragraphVIII of Schedule IV of the Companies Act, 2013 inrespect of performance evaluation of Directorsand the Board shall not apply in the case of aGovernment company as defined under clause(45) of section 2 of the Companies Act, 2013 videGazette notification dated 05.07.2017.

2.10 Code of Conduct

As part of the Company's persisting endeavor toset a high standard of conduct for its employeesand its Board members, a 'Code of BusinessConduct and Ethics' has been laid down for all BoardMembers and Senior Management personnel. Thesame is placed at Company's website.

The Code encompasses:

. General Moral Imperatives;

. Specific Professional Responsibilities; and

. Additional Duties / Imperatives for BoardMembers and Senior Management Personnel.

. A declaration by Senior Management personneland Board Members affirming, annually thatthey do read and follow the code.

2.11 Board Charter

Board has laid down a Board Charter for the Board ofDirectors of the Company defining the roles andresponsibilities of the Board Members. The Charteralso articulates Company's Corporate Governanceobjectives and approach.

36

Basic Salary Allowances and Sitting Fees TotalS. No. Name (in ) Perquisites & other (in ) (in )

retirement benefits (in )

1. Shi P K Rath 10,08,840 22,10,899 NIL 32,19,739

2. Shri P Raychaudhury 10,51,790 22,03,010 NIL 32,54,800

3. Shri Kishore Chandra Das 9,33,960 18,39,866 NIL 27,73,826

4. Shri V V Venu Gopal Rao 10,05,263 22,32,293 NIL 32,37,556

5. Shri P.Madhusudan* 1,95,780 38,77,442 NIL 40,73,222

6. Shri P.C.Mohapatra** 6,47,500 36,33,267 NIL 42,80,767

Note:

* The actual period of Service was up to May 2018. However, payment towards Leave encashment was made in June 2018

** The actual period of Service was up to October 2018. However, Gratuity was paid in the month of February 2019

Part-time Non-official Directors (Independent Directors)

The part-time non-official directors (i.e. Independent Directors) are appointed by Government of India asDirector for a period of 3 years from the date of assumption of charge or until further orders, whichever isearlier. Sitting fees is only paid by the Company to the part-time non-official directors @ 20,000/- for eachmeeting of Board/Board Sub-Committee attended to by them. The details of sitting fees paid during the yearto part-time non-official directors (i.e. Independent Directors) were as follows:

(Value in )

Part-time official Directors/ Govt. Directors

Shri Saraswati Prasad and Ms. Ruchika Chaudhry Govil are the Part-time official Directors/ GovernmentDirectors nominated by Government of India as Directors of RINL during the year 2018-19 and no remunerationwas paid to the Part-time official Directors by the Company.

Basic Allowances and Sitting Fees TotalS. No. Name Salary Perquisites & other (in ) (in )

(in ) retirement benefits (in )

1. Shri S K Srivastava Except Sitting fees, no other 4,60,000 4,60,0002. Shri S K Mishra remuneration is paid by the 6,00,000 6,00,0003. Shri K M Padmanabhan Company to the 3,80,000 3,80,0004. Shri Sunil Gupta part-time non-official directors. 6,20,000 6,20,0005. Shri Ashwini Mehra 5,00,000 5,00,000

2.13 Loans & Advances given to Directors

Functional Directors were not given any special loans or advances. However they are entitled to festivaladvances and House Building Advance at par with normal employees.

2.12 The details of remuneration & sitting fee paid to Directors during the Financial Year 2018-19.

Whole Time Directors (WTD)/ Functional Directors

The Whole Time Directors/ Functional Directors are appointed in terms of the Articles of Association of theCompany by the President of India, in consultation with the Chairman of the Company for a period of 5 yearsor 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. Thedetails of remuneration paid to whole time Directors during the year 2018-19, were as follows:

(Value in )

37

3.0 Board Sub Committees (BSC)

The Board has constituted the followingCommittees:

A. Corporate Governance

i) Audit Committee

ii) Nomination and Remuneration & Ethics/HRCommittee

iii) CSR & Sustainability Committee

iv) Stakeholders/Investors Grievance Committee

v) Committee of Independent Directors (COID)

B. Other Business purposes

vi) Board Sub Committee on Marketing (BSCOM)

vii) Board Sub Committee on Raw Material Security and Joint Ventures & Acquisitions

viii) Committee for Expansion and Related Projects (earlier HPSC)

ix) Committee of Management (COM)

Procedure at Board Sub-CommitteeMeetings

The guidelines relating to Board Meetings arelargely followed for all Board Sub-CommitteeMeetings as well. Minutes of the proceedings ofthe Committee meetings are placed before theBoard for perusal and noting.

Company Secretary is the Secretary to therespective Board Sub-Committees.

3.1 Audit Committee

In terms of the provisions of Section 177(2) ofthe Companies Act' 2013, read with theCompanies (Meetings of Board and its Powers)Rules, 2014, the functions/Scope of the AuditCommittee was approved by the Board. Thedetails of the same are as follows:

I. Scope of the Committee:

The scope of the Audit Committee has to be inconformity with Section 177 of the CompaniesAct, 2013 read with the Companies (Meetings ofBoard and its Powers) Rules, 2014, theguidelines issued by Department of PublicEnterprises (DPE) for Corporate Governance inrespect of unlisted Companies.

A. Statutory nature

In terms of the provisions of Section 177 of theCompanies Act, 2013, following functions arerequired statutorily to be discharged by the AuditCommittee:

1) The terms of reference shall, inter alia, include:-

a) the recommendation for appointment,remuneration and terms of appointment ofauditors of the Company;

b) review and monitor the auditor'sindependence, performance andeffectiveness of audit process;

c) examination of the financial statement andthe auditors' report thereon;

d) approval or any subsequent modification oftransactions of the Company with relatedparties;

e) scrutiny of inter-corporate loans andinvestments;

f) valuation of undertakings or assets of theCompany, wherever it is necessary;

g) evaluation of internal financial controls andrisk management systems;

h) monitoring the end use of funds raisedthrough public offers and related matters.

2) The Audit Committee may call for the Commentsof the auditors about Internal Control Systems,the scope of audit, including the observations ofthe auditors and review of financial statementbefore their submission to the Board and mayalso discuss any related issues with the internaland statutory auditors and the management ofthe company.

3) The Audit Committee shall have authority toinvestigate into any matter in relation to the itemsspecified in (1) or referred to it by the Board andfor this purpose shall have power to obtainprofessional advice from external sources andhave full access to information contained in therecords of the Company.

B. As per Corporate Governance Guidelinesissued by Department of Public Enterprises(DPE), the main functions of the AuditCommittee are as follows:

1) Oversight of the Company's financial reportingprocess and the disclosure of its financialinformation to ensure that the financialstatements are correct, sufficient and credible.

Approval nature:

2) Approval of payment to Statutory Auditors for anyother services rendered by the Statutory Auditors.

Recommending nature:

3) Recommending to the Board the fixation of Audit Fees.

38

Review nature:

4) To review the functioning of the Vigil Mechanism(Whistle Blower Mechanism);

5) Reviewing with the Management, the annualfinancial statements before submission to theBoard for approval, with particular reference to:

a) matters required to be included in theDirectors' Responsibility Statement to beincluded in the Board's Report in terms ofSection 134(5) of the Companies Act' 2013;

b) changes, if any, in accounting policies andpractices and reasons for the same;

c) major accounting entries involving estimatesbased on the exercise of judgment byManagement;

d) significant adjustments made in the financialstatements arising out of audit findings;

e) compliance with legal requirements relatingto financial statements;

f) disclosure of any related party transactions;

g) qualifications in the draft Audit Report;

6) Reviewing with the Management, the Quarterlyfinancial statements before submission to theBoard for approval.

7) Discussion with Statutory and Internal Auditorsany significant findings and follow up there on.

8) Reviewing with the Management, theperformance of Statutory and Internal Auditors,adequacy of the internal control systems.

9) Reviewing the adequacy of the Internal Auditfunction, if any, including the structure of theInternal Audit Department, staffing and seniorityof the official heading the Department, reportingstructure, coverage and frequency of Internal Audit.

10) Reviewing the findings of any internalinvestigations by the Internal Auditors intomatters where there is suspected fraud orirregularity or a failure of internal control systemsof a material nature and reporting the matter tothe Board.

11) Discussion with Statutory Auditors before theAudit commences about the nature and scopeof audit as well as post-audit discussion toascertain any area of concern.

12) To look into the reasons for substantial defaultsin the payment to the depositors, debenture-holders, shareholders (in case of non-paymentof declared dividends) and creditors.

13) Carrying out any other function as is mentionedin the terms of reference of the Audit Committee.

14) To review the follow up action on the auditobservations of the Comptroller & AuditorGeneral of India (C&AG Audit).

15) To review the follow up action taken on therecommendations of Committee on PublicUndertakings (COPU) of the Parliament.

16) Provide an open avenue of communicationbetween the independent auditor, internal auditorand the Board of Directors.

17) Review all related party transactions in theCompany. For this purpose, the Audit Committeemay designate a Member who shall beresponsible for pre-approving related partytransactions.

18) Review with the independent auditor the co-ordination of audit efforts to assure completenessof coverage, reduction of redundant efforts, andthe effective use of all audit resources.

19) Review of Management Discussion and analysisof financial condition and results of operations.

20) Review of Statement of related party transactionssubmitted by Management.

21) Review of Management letters / letters of internalcontrol weaknesses issued by the statutoryauditors.

22) Review of Internal audit reports relating to internalcontrol weaknesses.

23) Certification / declaration of financial statementsby the Chief Executive Officer i.e. CMD and CFOi.e. Director (Finance); and

24) Appointment and removal of the Chief InternalAuditor shall be placed before the AuditCommittee.

25) Review of Status of Sundry Debtors.

26) Consider and review the following with theindependent auditor, if any, and theManagement:

a) The adequacy of internal controls includingcomputerized information system controls andsecurity, and

b) Related findings and recommendations of theindependent auditor and internal auditor,together with the Management responses.

27) Consider and review the following with themanagement, internal auditor and theindependent auditor:

39

a) Significant findings during the year, includingthe status of previous audit recommendations;

b) Any difficulties encountered during audit workincluding any restrictions on the scope ofactivities or access to required information.

C. In addition to the above, the AuditCommittee should also fulfill the followingrequirements of Clause 49 of the ListingAgreement:

a) The Audit Committee shall approve theappointment of the CFO (i.e., the whole-timefinance director or any other person headingthe finance function or discharging thatfunction) after assessing the qualifications,experience and background, etc., of thecandidate.

b) The Chairman of the Audit Committee shallbe present at Annual General Meeting toanswer Shareholder queries; provided that incase the Chairman is unable to attend due tounavoidable reasons, he may nominate anyMember of the Audit Committee; and

c) The Audit Committee may invite such of theexecutives, as it considers appropriate (andparticularly the head of the finance function)to be present at the meetings of theCommittee, but on occasions it may also meetwithout the presence of any executives of theCompany. The Finance Director, Head ofinternal audit and a representative of theStatutory Auditor may be present as inviteesfor the meetings of the Audit Committee.

Note: The Company is not a listed company. Therequirements vide para (c) above has beenapproved by the Board of Directors as part ofterms of reference to Audit Committee.Accordingly the above are being complied withby the company voluntarily.

D. In terms of RINL Board directions, inaddition to the above, the Audit Committeeshall also look into the following areas:

1) Recommending nature:

a)Recommendations on working capitalarrangements and term loans includingborrowings for capital expenditure.

b) Recommendations on investment of Surplusfunds.

c) Recommendations of write off of lossesrequiring approval of Board.

2) Review of information by Audit Committee:

a)Reviewing with the Management, thestatement of uses / application of fundsraised through an issue (public issue, rightsissue, preferential issue, etc.), the statementof funds utilized for purposes other thanthose stated in the offer document /prospectus / notice and the report submittedby the monitoring agency monitoring theutilization of proceeds of a public or rightsissue and making appropriaterecommendations to the Board to take upsteps in this matter.

b)To review contracts on nomination basis asper extant guidelines.

E. The powers of the Committee include thefollowing:

a) To investigate any activity within its terms ofreference.

b) To seek information from any employee.

c) To obtain outside legal or other professionaladvice, subject to the approval of the Boardof Directors.

d) To secure attendance of outsiders withrelevant expertise, if it considers necessary.

e) To protect Whistle Blowers.

F. The Audit Committee may also look into anysuch other matter as may be prescribed bythe Statutory Authorities from time to time.

Periodicity: In terms of the CorporateGovernance guidelines issued by DPE vide para4.4 from time to time, the Audit Committee shouldmeet at least four times in a year and not morethan four (4) months shall elapse between twomeetings. The quorum shall be either two Membersor one third of the Members of the Audit Committeewhichever is greater, but a minimum of twoindependent Members must be present.

II Composition:

The Audit Committee comprised the followingIndependent directors during the year ending with31.03.2019.The details of meetings attended bythe Members of the Committee are as follows:

40

The Company being a Government Company, theappointment, tenure and remuneration of CMD andFunctional Directors are decided by Govt. of India. Asper the Department of Public Enterprises (DPE)Guidelines, a Remuneration Committee wasconstituted to decide the annual bonus/variable paypool and policy for its distribution within the prescribedlimits. The Board of Directors of the companyreconstituted the Nomination, Remuneration & Ethics/HR Committee by merging both the RemunerationCommittee and Ethics/ HR Committee. The Director(Finance) and Director (Personnel) are also Membersfor Remuneration Committee (RC) from 06.12.2018.Committee shall meet periodically depending upon therequirement. During the financial year 2018-19, 5(Five)meetings were held on 28.05.2018, 05.09.2018,29.10.2018, 10.11.2018 & 23.02.2019. The details ofthe Members and their attendance are as follows:

Name of the Position Meetings MeetingsDirector held Attended

during the tenureShri S K Srivastava

(upto 12.11.2018) Chairman 4 4

Shri S K Mishra

(w.e.f.06.12.2018) Chairman 1 1

Shri Sunil Gupta Member 5 5

Shri Ashwini Mehra Member 5 5

Shri K C Das

(w.e.f 06.12.2018) Member 1 1

Shri V V Venu Gopal Rao

(w.e.f 06.12.2018) Member 1 1

3.3 CSR & Sustainability Committee Composition:

CSR & Sustainability Committee comprised of Two (2)Independent Directors & (2) Functional Directors ason 31.03.2019. During the financial year 2018-19,2(Two) meetings were held on 19.07.2018 &23.02.2019.The details of Members and theirattendance are as follows:

Name of the Director Position Meetings Meetings held Attended

during the tenureShri Ashwini Mehra Chairman 2 2Shri Sunil Gupta Member 2 2Shri K M Padmanabhan(upto 12.11.2018) Member 1 1Shri K C Das(w.e.f. 06.12.2018) Member 1 1Shri V V Venu Gopal Rao(w.e.f. 06.12.2018) Member 1 1

Note: Director (Personnel), Director (Finance) & Director(Operations) were invitees for the meetings of theCommittee till 05.12.2018.

Members of the Meetings MeetingsCommittee Position held Attended

duringthe tenure

Shri Sunil Gupta Chairman 5 5

Shri S K Srivastava

(upto 12.11.2018) Member 4 4

Shri S K Mishra Member 5 5

Shri K.M Padmanabhan

(upto 12.11.2018) Member 4 4

Shri Ashwini Mehra

(w.e.f 06.12.2018) Member 1 1

The Director (Finance) of the Company is a PermanentInvitee and the Head of Internal Audit & StockVerification Department is an Invitee for the meetingsof the Audit Committee. The representative of theStatutory Auditors is also invited to the Audit Committeemeeting while considering Annual FinancialStatements and discussion on the nature and scopeof Annual Audit. Company Secretary acts as theSecretary to the Audit Committee. As on 31.03.2019,there were three Independent Directors as Membersof Audit Committee.

III. Meetings and attendance of Audit Committeeduring the year:

During the financial year ending with 31st March, 2019,5(five), the Audit Committee Meetings were held onthe following dates;

Sl.No. Meeting No. Date

1 81 05.04.2018

2 82 19.07.2018

3 83 05.09.2018

4 84 10.11.2018

5 85 23.02.2019

The details of attendance of each Member are givenin the table at para II above.

The Minutes of all the Audit Committee meetings areput up to Board in their subsequent meetings as anItem of information. The Chairman of the AuditCommittee also appraises the Board about theobservations, if any, of the Audit Committee duringthe Board Meeting.

3.2 Nomination and Remuneration & Ethics/HRCommittee

Nomination, Remuneration & Ethics/HR Committeehas five Directors comprising of three (3) Independentdirectors and Two (2) Functional Directors asMembers as on 31.03.2019 and the Committee ischaired by an Independent Director.

41

3.4 Stakeholders/Investors Grievance CommitteeThe Stakeholders/Investors Grievance Committeecomprised of Six (6) Members including twoIndependent Directors of which One IndependentDirector is the Chairman of the Committee and fourWhole Time Directors as Members as on 31.03.2019.During the year FY 2018-19, one meeting was heldon 29.10.2018 and details of Members and theirattendance are as follows:

Name of the Position Meetings MeetingsDirector held during Attended

the tenure

Shri S K Mishra Chairman(upto 05.12.2018) 1 1Member(w.e.f 06.12.2018) - -

Shri Ashwini Mehra Member(upto 05.12.2018) 1 1Chairman(w.e.f. 06.12.2018) - -

Director(Projects) Member - -Director (Personnel) Member 1 1Director(Finance) &Concerned FunctionalDirector Member 1 1

Committee shall meet periodically depending upon therequirement.

5. Disclosures

(i) Disclosures on materially significant relatedparty transactions that may have potentialconflict with the interests of the Company atlarge:

There were no transactions by the Company ofmaterial nature with Promoters, Directors or theManagement, their subsidiaries or relatives etc.that may have potential conflict with the interestof the Company at large.

(ii) Details of non-compliance by the Company,penalties, strictures imposed on theCompany by any statutory authority, on anymatter related to any guidelines issued byGovernment, during the last three years:

There were no instances of non-compliance bythe Company, Penalties, Strictures imposed onthe Company by any Statutory Authority, on anymatter related to any guidelines issued byGovernment, during the last three years.

(iii) Vigil Mechanism Policy of RINL:

The Company has since put in place a VigilMechanism comprising Whistle Blower Policy.

(iv) Details of compliance with the requirementsof Corporate Governance Guidelines:

The Company has complied with the requirementsof DPE Guidelines on Corporate Governance.

(v) Details of Presidential Directives issued bythe Central Government and theircompliance during the year and also in thelast three years:

No Presidential Directives were issued by theCentral Government during the last three years.

(vi) Items of expenditure debited in books ofaccounts, which are not for the purposes ofthe business:

There were no items of expenditure debited inbooks of accounts, which are not for the purposesof the business.

Date Description of Special Resolution

14.08.2018 (i) Borrowing in excess of the paid up share capital and free reserves

of the company and

(ii) Creation of mortgage and/or charge over the movable & immovable properties of the company, both present & future in respect of the borrowings.

4.0 General Body Meetings

(i) Date, Time and Venue of the last three AGMs:

Financial Date Time VenueYear2015-16 29.09.2016 11.00 hrs

2016-17 27.09.2017 11.00 hrs

2017-18 29.09.2018 11.00 hrs

(ii) Whether any special resolutions passed in theprevious three AGMs: NIL

Note: Two Special Resolutions regarding (i) borrowingin excess of the paid up share capital and free reservesof the company and (ii) creation of mortgage and/orcharge over the movable & immovable properties ofthe company, both present & future in respect of theborrowings, mentioned in the 34th & 35th AGM Noticefor the AGM held on dt.29.09.2016 & dt.27.09.2017were withdrawn.(iii) AGM of the Current Year;FinancialYear Day & Date Time Venue2018-19 Friday 13th Admn.Building,

September, 14:00 Hrs RINL/VSP,2019 Visakhapatnam - 31

Admn. Building,RINL/VSP,Visakhapatnam– 530 031.

(iv) EGM and Special Resolution passed;

42

(vii) Expenses incurred which are personal innature and incurred for the Board ofDirectors and Top Management:

There were no expenses incurred which arepersonal in nature and incurred for the Board ofDirectors and Top Management.

(viii)Compliance with New initiatives of Ministryof Corporate Affairs:

a) Directors KYC: Your Company has complied withthe Companies (Appointment and Qualification ofDirectors) fourth Amendment Rules, 2018 by filingform DIR-3 KYC of all the directors of the Company.

( in Crores)

Details 2018-19 2017-18 Increase / Decrease over 2016-17 Reasons

1 Administrative and Office expenses 103.85 98.07 Increase (due to increase in security expenses)

2 Financial expenses 1277.61 938.33 Increase (due to increase in borrowings)

3 Total expenses (as per P&L A/c) 22329.44 16429.06

4 Administrative expenses as a % of 0.47% 0.60% Decrease (due to increase in total expenses)

Total expenses (1÷3)

5 Financial expenses as a % of Total 5.72% 5.71% Increase (due to increase in borrowings

expenses (% ) (2÷3)

(iv) Whether it also displays official news releases.

The Company also displays official news releaseson its website (www.vizagsteel.com).

7. Shareholder’s information

(i) Company Registration Details

The Company is registered in the State of AndhraPradesh, India. The Corporate Identity Number(CIN) allotted to the Company by the Ministry ofCorporate Affairs(MCA) is U27109AP1982GOI003404.

(ii) Annual General Meeting

Date: Friday, 13th September,2019

Time: 14:00 Hrs

Venue: Admn. Building, RINL, Visakhapatnam Steel Plant (VSP), Visakhapatnam.

(iii) Financial Year:

The financial year of the company is from 01st Aprilto 31st March.

(iv) Payment of Dividend:

During the year, No dividend was declared.

(v) Stock Code: ISIN -INE508F01013

6. Means of Communication

(i) Quarterly Results

The Company is an unlisted company and hencequarterly results of the Company are not publishedin Newspapers. However, the same are being putup to the Administrative Ministry (MoS) and AuditCommittee respectively.

(ii) Newspapers wherein results normallypublished

A brief on Annual Results are covered by Newspapers viz The Hindu, Eenadu (local Telugu paper)etc.

(iii) Any website, where displayed

Annual results as part of the Annual Reports forthe last three years are made available on thewebsite of the Company (www.vizagsteel.com).Website is designed to open the documents easilyand quickly. Hindi version of the Annual report isalso placed on the website along with Englishversion.

b) Form INC-22A Active: Your Company has filedform INC-22A Active within the due date of filingto comply with the Companies (Incorporation)Amendment Rules, 2019.

c) Form MSME: Your Company has filed form MSMEwith the details of payments to MSMEs exceedingforty five days from the date of acceptance ofgoods and services to comply with the directionsgiven by MCA in Companies (Furnishing ofinformation about payment to micro and smallenterprise suppliers) Order, 2019.

(ix) Details of Administrative and office expenses as a percentage of total expenses vis-à-visfinancial expenses and reasons for increase:

43

(vi) Registrar and Share Transfer Agent:

KARVY FINTECH PRIVATE LIMITED(Formerly known as Karvy Computershare Pvt. Ltd.)Plot No. 17 - 24, Vithal Rao Nagar, Madhapur,Hyderabad -500 081, State of Telangana, IndiaTelephone: +91 40 4465 5000, Facsimile: +91 40 2343 1551,Email: murali.m@karvy.comWebsite: www. karisma.karvy.com,Contact Person: Shri M. Murali Krishna,SEBI Registration Number: INR000000221

(vii)Share Transfer System

The Company, being a Govt. Company, the entireshare capital is held by Central Governmentrepresented by President of India and hisnominees. Shares held in the name of Presidentof India are in dematerialized form. Shares heldin the name of nominees are in physical form.Shares in the physical form are transferred as andwhen changes are made in the nominees byfollowing the procedure as applicable to Govt.Companies.

M/s. Karvy Computershare Private Limited i.e.M/s. Karvy Fintech Pvt.Ltd, Hyderabad has beenappointed as Registrar & Share Transfer Agent forlooking after demat and other related works andreporting system through weekly snapshot reports.

(viii) Equity Shareholding pattern as on 31.03.2019

S. No. Name of the Shareholder Number ofEquity Shares

1 The President of India

(Acting through MoS) 488,98,45,400

2 Shri P. K Rath 200

3 Shri P Raychaudury 200

4 Shri K C Das 100

5 Shri V V Venu Gopal Rao 100

6 Shri Saraswati Prasad 100

7 Ms. Ruchika Chaudhry Govil 100

Total 488,98,46,200

The Company is a wholly owned GovernmentCompany. All the shares are held in the name of thePresident of India and his nominees as appearedabove from Sl.No.2 to 7.

(ix) The Subsidiaries of the Company as on 31st

March, 2019

(a) Eastern Investments Limited (EIL)(b) The Orissa Minerals Development Company Limited (OMDC)

(c) The Bisra Stone Lime Company Limited (BSLC)

(OMDC & BSLC are the Subsidiaries of EIL)

(x) Joint Venture Companies as on 31st March, 2019 (a) RINMOIL Ferro Alloys Private Limited

(b) International Coal Ventures Private Limited

(c) RINL Powergrid TLT Private Limited

(xi) Address for correspondence:M. Jagadeeshwara Rao

Company Secretary,

Company Affairs Department,

D-12, D Block, 2nd Floor, Administrative Building,

Rashtriya Ispat Nigam Limited (RINL),

Visakhapatnam Steel Plant (VSP),

Visakhapatnam - 530 031.

Email:csrinl@vizagsteel.com,

Website: www.vizagsteel.com

8. Audit Qualifications

The Company has secured 'NIL' Comments from

Comptroller & Auditor General of India(C&AG) for the

last Twelve (12) consecutive years since 2007-08.

9. Training of Board Members

The Company has been sponsoring the independent

directors/ newly inducted directors for training

programs conducted by SCOPE/ DPE/IPE.

10. Certification of Financial Statements by theCEO and CFO of the Company

The CEO (i.e. CMD of the Company) and CFO (i.e.

Director (Finance) of the Company) have provided the

Certification regarding the financial statements for the

year 2018-19, as reviewed by Audit Committee. (Copy

enclosed) (Annexure -III).

11. Corporate Governance Certificate

A Certificate on Compliance of Guidelines on Corporate

Governance issued by DPE in May 2010, for the year

2018-19 given by a Practicing Company Secretary is

annexed herewith and forms part of the Directors'

Report vide (Annexure-IV).

44

Annexure-III to Directors’ Report

Chief Executive Officer (CEO) and Chief Financial Officer (CFO) Certification

We, P K Rath, Chief Executive Officer & Chairman-Cum-Managing Director and V.V.Venu Gopal Rao, ChiefFinancial Officer & Director (Finance) of RINL, to the best of our knowledge and belief, certify that:

1. We have reviewed the Balance Sheet, Statement of Profit & Loss and Statement of Changes in Equity,significant accounting policies and Notes to Accounts, as well as the statement of Cash Flows for the yearended March 31, 2019;

2. These statements do not contain any materially untrue statement or omission of any material fact or containstatements that might be misleading in light of the circumstances under which such statements were made;

3. These statements present true and fair view of the Company's affairs and are in compliance with the existingAccounting Standards and/or applicable Laws and Regulations;

4. No transaction was entered into by the Company during the year which was fraudulent, illegal or violative ofthe Company's Code(s) of Conduct;

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

6. We have indicated to the Company's Auditors and the Audit committee

(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 disclosedin the notes to the financial statements;

(c) Instances of significant fraud of which we have become aware and the involvement therein, if any, of themanagement or an employee having significant role in the Company's internal control system over financialreporting.

7. We further declare that all Board Members and Senior Managerial personnel have affirmed compliancewith the Code of Conduct for the year ended 31.03.2019.

Sd/- Sd/-

V.V.Venu Gopal Rao P K Rath

CFO & Director (Finance) CEO & Chairman-Cum-Managing Director

Place: Visakhapatnam

Date : 19/08/2019

45

Annexure - IV to Directors’ Report

46

Annual Report on CSR Activitiesfor the financial year 2018 -19

(Disclosures as per Section 135 of the Companies Act, 2013 read with Rule 9 of the Companies(Corporate Social Responsibility) Rules, 2014)

1. A brief outline of the Company's CSR policy,including overview of projects or programsproposed to be undertaken and a referenceto the web-link to the CSR Policy and projectsor programs

The Company has formulated its CSR Policy in2006 well before the enactment of the CompaniesAct 2013. An exclusive Department has beencreated in 2007 to look after the implementationof CSR projects / programmes / activities

The CSR Policy has been revisited and reviewedkeeping in mind the specific provisions of theCompanies Act 2013 and the DPE Guidelines onCSR issued from time to time. The CSR Policy ofthe Company was rechristened as RINL CSR &Sustainability Policy and notified in March, 2015.

While the initial part of the CSR & SustainabilityPolicy elucidates alignment of CSR with theCompany's Vision & Objectives and incorporationof Sustainability in its strategy. The subsequent partdetails the Annual CSR activities, in line with theactivities laid down under Schedule-VII of theCompanies Act, 2013. A clear definition of 'Local'and 'Non-Local' area and ratio of the spendbetween these two areas has been specified.

Identification, Implementation and monitoring ofprojects, implementation Strategy, Delegation ofPowers, criteria for execution agencies i.e. NGOsetc. are elaborated in the Policy document.

The web link for the policy :

https://www.vizagsteel.com/csr/csr-policy.pdf

Annexure-V to Directors’ Report

The overview of projects undertaken in the focus areas viz., Education, Health, Sanitation, Skill Development,Women Empowerment & Senior Citizen care, Environment, Promotion of Sports & Rural Development is asfollows:

Sl.No. CSR Projects/Programmes/Activities

Education

1 Providing quality education to children belong to Below poverty Line category from surrounding villagesof Plant & Mines.

2 Repair & Renovation of Workshop building at Govt. Polytechnic for Women, Bheemili, Visakhapatnambenefitting around 600 girl students.

3 Providing educational infrastructure like Dual desk benches, Water purifiers etc. to Govt. Schools in andaround Visakhapatnam and surrounding villages of Forged Wheel Plant at UP.

4 Adult literacy program for 625 beneficiaries from peripheral villages of Plant, Vizianagaram district andtribal areas of Visakhapatnam and Vizianagaram Districts.

5 Support to Arunodaya Special School for providing education, therapy and vocational training to differentlyabled children in and around Plant.

6 Providing quality education to the 1200 children belonging to slum areas so as to inspire, educate andintegrate them into productive society.

47

Sl.No. CSR Projects/Programmes/Activities

Health

7 Cochlear implant surgeries to four poor children with hearing impairment

8 Providing wheel chairs, tricycles, prosthetics, adaptive devices etc.to 147 Divyangjan including spinal cordinjury patients and amputees

9 Providing 200 wheel chairs to Visakhapatnam District Administration for facilitating the persons withdisabilities to exercise their franchise in the General Elections.

10 Extending support to restoration activities in cyclone hit areas of Srikakulam District.

Sanitation

11 Providing potable drinking water facility to four tribal villages in Visakhapatnam District through 'Jaladhara'project benefitting around 620 residents

12 Supply of drinking water to Rehabilitation colonies & peripheral villages of Plant during summer

13 Installation of R.O Drinking Water Plants in the surrounding villages of RINL Mines.

14 Swachh Bharat projects like maintenance of toilets constructed under Swachh Vidyalaya, Contribution toClean Ganga Fund, Installation of water purifiers with chillers in East Godavari Dt.Providing SanitaryNapkin dispensers, Incinerators to 15 schools and 1 lakh Sanitary napkins in Nuh Dt.etc.

Skill Development

15 Providing skill development training to 100 Persons with Disabilities (Divyangjan)

16 Providing Vocational training to 320 beneficiaries in RH colonies and peripheral villages of Plant & Mines.

Women Empowerment & Support to Senior Citizens

17 Installation of CCTV surveillance system in and around plant for improving women safety & security.

18 Adoption of 25 abandoned and destitute elderly persons rescued from the streets, Bus stations and Railwaystations and provided them with daily necessities such as shelter, food, cloth and medical care.

Environment

19 Block & Avenue Tree Plantation in the identified areas of Greater Visakha Municipal Corporation ofVisakhapatnam under "Green Visakha" project.

Art, Culture, Libraries

20 Support to Visakhapatnam Public Library for creating additional space in the form of study hall, separatesection for career related material & current affairs and a computer section

Sports

21 Support to Sports for Special Children.

Rural Development

22 Support for construction of Community hall at Shajadpur of Kaushambi Dt. UP

23 Construction of Multipurpose Hall at Jaggayyapeta a surrounding area of RINL Limestone Mines.

48

2. Composition of the Committee:

a) RINL Board Sub-Committee on CSR & S is functioning as the CSR Committee.

The Board Sub-Committee on CSR & S consists of four Members and two of them including theChairman of the Committee are Independent Directors.

1. Shri. Ashwini Mehra-Independent Director - Chairman

2. Shri. K.M. Padmanabhan-Independent Director - Member (up to12.11.2018)

3. Shri. Sunil Gupta- Independent Director - Member

4. Shri. Kishore Chandra Das - Director (Personnel) - Member (from 06.12.2018)

5. Shri. V V Venugopal Rao- Director (Finance) - Member (from 06.12.2018)

Besides the above, Director (Operations) is an Invitee and the Company Secretary is the Secretary tothe Committee.

b) The Board Sub-Committee on CSR&S has met two times during the FY 2018-19 and reviewed thestatus of CSR projects/programmes/activities and has suggested measures to be taken to expeditethe completion of various CSR projects/programmes/activities in time bound manner. In addition tothis, CMD and Directors have reviewed all these projects/programmes/activities every month.

3. Average Net profit of the Company for the last three financial years : (-) 1588.85 Cr

4. Prescribed CSR Expenditure (2% ) of the amount : Nil

5. Details of CSR Spent during the financial year 2018-19:

a) Total Amount to be spent during the financial year : 11.90 Cr

(Including carry forward amount of 3.40 Cr from previous year.)

b) Amount unspent if any : 1.60 Cr

c) Manner in which the amount spent during the financial year: Enclosed at Annexure-I.

6. In case the Company has failed to spend the two percent of the average net profit of the lastthree financial years or any part thereof, the Company shall provide the reasons for notspending the amount in its Board Report.

In view of the losses sustained in the last three years, the Company is not statutorily obligated to spendany amount towards CSR projects/programmes/activities i.e. to earmark 2% of the average net profit inthe immediately preceding three years. However, to sustain the momentum of undertaking CSR projects/programmes/activities, which have significant social & economic impact in respect of the beneficiariesand to continue to build a positive corporate image, an allocation of 11.90 Cr (including the carryforward amount) was made for the FY 2018-19 by the Board of RINL.

7. A responsibility statement of the CSR committee that the implementation and monitoring ofCSR policy, is in compliance with CSR objectives and policy of the company.

At RINL, the implementation and monitoring of CSR activities has been carried out in compliance withCSR objectives & Corporate Social Responsibility & Sustainability Policy (CSR &S) of the Company andrelevant provisions of the Companies Act, 2013 and rules made thereunder.

Sd/- Sd/-(Shri P K Rath) (Shri Ashwini Mehra)

(Chairman cum Managing Director) (Chairman, CSR Committee)

49

CSR- DETAILS OF AMOUNT SPENT DURING FINANCIAL YEAR 2018-19

S.No

CSR project orActivity identified

Sector inwhich theproject iscovered

Project orPrograms

(1) Local Area orother Area

(2) Specify State,District where

Project undertaken

AmountOutlay

(Budget)Project

orprogram

wise( in

Lakhs)

Amountspent on

theProjects orprogramsSub-Heads: (1) Directexpenditureon projects

orprograms.

(2)Overheads( in Lakhs)

Cumulativeexpenditure

uptoReporting

period( in

Lakhs)

Amount spentDirect orthrough

ImplementingAgency

1 Providing qualityeducation tochildren belonging toBPL families ofsurrounding villagesof Plant & Mines.

2 Promoting educationthrough providinginfrastructuralsupport to schoolsviz.dual deskbenches,construction &renovation ofworkshop/ classrooms etc.,conducting adultliteracyprogrammes,providing educationto children belongingto slum areas etc.

3 Support toArunodaya Specialschool for providing

free education to

differently abled

children

Education

Education

1. Local Area 2.i)Visakhapatnam Dt.,

Andhra Pradesh (ii)Krishna Dt., Andhra Pradesh (iii)Khammam Dt., Telangana

1. Local & Non-Local area2. (i)Visakhapatnam Dt.,

Andhra Pradesh (ii) Viziangaram Dt.

Andhra Pradesh (iii)YSR Kadapa Dt. Andhra Pradesh (iv) Hyderabad Dt., Telangana (v) Raebareli Dt. Uttar Pradesh

1. Local Area2. Visakhapatnam Dt. Andhra Pradesh

450.00

127.05

33.53

449.78

87.16

23.58

449.78

105.51

(17-18 =18.35)

23.58

Directly by RINL

1. Govt. ITI Gajuwaka

2. APEWIDCGovt.of AP

Visakhapatnam

3.Ekalavya Foundation, Hyderabad

4.Pratham Education Foundation, Hyderabad

5. SMC/Gram Panchayat, Aihar,Taudhakurvillages,Raebareli

ArunodayaSpecial SchoolEducationalSociety,Ukkunagaram,Visakhapatnam

Annexure - I to Annual Report on CSR Activities

Education

Sector: Education

1 2 3 4 5 6 7 8

50

Health

Sanitation

Sanitation

1. Local Area &Non- Local Area

2.i) Visakhapatnam Dt., Andhra Pradeshii) Vizianagaram Dt , Andhra Pradeshiii) Srikakulam Dt, Andhra Pradeshiv) Palakkad Dt., Kerala

1. Local Area2. i)Visakhapatnam

Dt,Andhra Pradesh ii) Krishna Dt.,Andhra Pradesh iii)Khammam Dt.,Telangana

1. Local Area,Non-Local & PanIndia2.i)Visakhapatnam Dt.Andhra Pradesh ii) East Godavari Dt,

Andhra Pradeshiii) Pan Indiaiv) Nuh Dt., Haryana

1. ALIMCO,Hyderabad

2. The AbilityPeople,Visakhapatnam

3. Guru DevaCharitable Trust

4. Govt. of AP

5. In collaboration with SAIL

6.Directly by RINL

1.Greater VisakhaMunicipalCorporation,Visakhapatnam,2. D.Sarada Trust,Visakhapatnam3. Academy ofGandhianStudies,Tirupati

1. Sarva Shiksha

Abhiyan, Govt.

of A.P.

2. SVVSS

Devasthanam,

Annavaram

3.Clean Ganga

Fund, Govt. of

India

4. District

Administration,

Nuh Dt.

102.11

55.96

100.00

115.05

(17-18 =25.20)

63.19

(16-17 =11.67

17-18 =9.18)

75.99

Sector: Health

4 Rehabilitating children

with hearing

impairment by

Cochlear implantation,

Providing wheel chairs

and adaptive devices

to divyangjan and

persons with spinal

cord injuries, cataract

surgeries to BPL

patients and relief to

victims of natural

calamities etc.

Sector: Sanitation

5 Drinking water Supply

in RH Colonies of

plant, providing potable

water facility in Tribal

villages, installation of

RO plants in

surrounding villages of

plant & mines etc.

6 Swachh Bharat

projects like,

maintenance of Toilets

in schools under

'Swachh Vidyalaya' ,

Contribution to Clean

ganga Fund , providing

clean drinking water,

providing sanitary

napkin dispensers,

incinerators to 15

schools and 1.0 lakh

sanitary napkins etc.

89.85

42.34

75.99

51

Sector: Skill Development

7 Vocational training

programs in RH colonies

and peripheral villages

of Plant & Mines, Skill

Development Program

for People with

Disabilities (Divyangjan)

8 Installation of CCTV

surveillance system

around plant for

improving women safety

& security, Adopting

25 destitute, abandoned

senior citizens by

providing them food,

shelter, cloth and

medical care

9 Block & Avenue

Plantation in the

identified areas of

Greater Visakha

Municipal Corporation of

Visakhapatnam under

"Green Visakha"

project.

10 Renovation of

Visakhapatnam Public

Library

1. Local Area2.i) Visakhapatnam Dt.,

Andhra Pradesh ii)Vizianagaram Dt,

Andhra Pradesh

1. Local Area &Non- Local area

2.i)Visakhapatnam Dt.Andhra Pradesh

ii) Hapur Dt., UP

1. Local Area2. Visakhapatnam

Dt., Andhra Pradesh

1. Local Area2. Visakhapatnam

Dt. Andhra Pradesh

SkillDevelopment

Womenempowerment& support toSeniorCitizens

Environment

Art, Culture& Libraries

35.54

99.00

40.00

10.00

41.10

(17-18 =19.30)

70.50

321.82

(14-15 =67.91

15-16 =113.62

16-17 =11.93

17-18 =90.02)

10.00

1. Jan Shiksha

Sansthan,

Visakhapatnam

2. NHFDC,

New Delhi

1. TheCommissionerof Police,VisakhapatnamCity

2. Saint HardayalEducation andOrphans

Welfare Society

Directly by RINL

TheVisakhapatnamPublic LibrarySocietyVisakhapatnam

21.80

70.50

38.34

10.00

Sector: Women Empowerment & Senior Citizen Care

Sector: Art, Culture & Libraries

Sector: Environment

52

1. Local Area2. Visakhapatnam

Dt. Andhra Pradesh

1. Local Area &Non- Local area2.i)Visakhapatnam

Dt.,Andhra Pradesh ii) Krishna Dt. Andhra Pradesh iii) Kaushambi

Dt.,UP

1. Local Area2. Visakhapatnam

Dt.,

Andhra Pradesh

Total

Directly byRINL

1. CPWD

2. Rural Engg.

Dept,

Govt. of UP

1. Andhra University Visakhapatnam2. NIT, Rourkela

Note: There are no ‘Overheads’ on the ‘Amount spent’ (col. (6) above)

Sector: Sports

11 Support to Sports for

Special Children &

differently abled sports

persons for undergoing

training

Sector: Rural Development

12 Construction of

Community Hall, Laying

of Under Ground

drainage, Roads and

other developmental

activities

Sector: Others

13 Impact assessment of

Projects & Need

assessment surveys

etc.

Sports

RuralDevelopment

Others

8.00

118.81

10.00

1190.00

5.00

113.16

2.28

1029.78

5.00

159.66

(17-18 =46.50)

2.28

1443.46

53

Form No. MGT-9

EXTRACT OF ANNUAL RETURNAs on the financial year ended on 31-03-2019

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

Annexure - VI to Directors’ Report

I. REGISTRATION AND OTHER DETAILS:

i) CIN : U27109AP1982GOI003404

ii) Registration Date : 18-02-1982

iii) Name of the Company : RASHTRIYA ISPAT NIGAM LIMITED (RINL)

iv) Category : Company limited by Shares

v) Sub- Category of the Company : Union Government Company

vi) Address of the Registered office : Administrative Building,

and contact details RASHTRIYA ISPAT NIGAM LIMITED (RINL)

Visakhapatnam Steel Plant (VSP)

Visakhapatnam - 530031, Andhra Pradesh

Tel: 0891 - 2518249; Fax: 0891 - 2518249

E-mail: jagadeeshm@vizagsteel.com;

vii) Whether listed company : No

viii) Name, Address and Contact details of

Registrar and Transfer Agent, if any : Karvy Fintech Private Limited,

(Formerly known as Karvy Computershare Pvt. Ltd.)

Plot No: 17-24, Vithal Rao Nagar, Madhapur

Hyderabad - 500081, State of Telangana.

Tel: 040-44655000; 040-23431551

Email: murali.m@karvy.com

II. PRINCIPAL BUSSINESS ACTIVITIES OF THE COMPANY

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

stated:-

Name and Description of NIC Code of the Product/Service % to Total Turnover of the

main Products / Services Company

Saleable Steel and pig iron 241-Manufacture of Basic Iron &Steel 95.94%

54

* RINL(0.21%), EIL(50.01%) and Birds Jute & Exports Limited(0.05%) collectively holds 50.27 % ofShareholding of BSLC.

** EIL holds 50.01% of shareholding of OMDC.;

III. PARTICULARS OF HOLDING, SUBSIDIARY AND ASSOCIATE COMPANIES

Holding/ % of ApplicableSl. Name and Address CIN/GLN Subsidiary/ shares Section of theNo. of the Company Associate held Companies

Act, 2013

1 Eastern Investments Ltd. (EIL)

"Sourav Abasan", 2nd Floor, L65993WB1927GOI005532 Subsidiary 51 2(87)(ii)

AG-104, Sector-II, Salt Lake,

Kolkata, West Bengal - 700091

2 The Bisra Stone Lime Company Ltd. (BSLC)

"Sourav Abasan", 2nd Floor, L14100WB1910GOI001996 Subsidiary 50.27* 2(87)(ii)

AG-104, Sector-II, Salt Lake,

Kolkata, West Bengal - 700091

3 The Orissa Minerals Development

Company Limited (OMDC),

"Sourav Abasan", 2nd Floor, L51430WB1918GOI003026 Subsidiary 50.01 ** 2(87)(ii)

AG-104, Sector-II, Salt Lake,

Kolkata, West Bengal - 700091

4 RINMOIL Ferro Alloys Private Limited

Ground Floor, Old Health Centre, U27101AP2009PTC064546 Joint Venture 50 2(6)

Sector-II, Ukkunagaram,

Visakhapatnam-530031

5 International Coal Ventures

Private Limited (ICVL),

20th Floor, Scope Minar, U10100DL2009PTC190448 Joint Venture 25.94 2(6)

(Core-2), North Tower,

Laxmi Nagar District Centre,

Delhi -110092

6 RINL Powergrid TLT Private

Limited (RPTPL)

Room No.31, "B" Block, U28121AP2015PTC097211 Joint Venture 50 2(6)

Project Office,

Visakhapatnam Steel Plant,

Visakhapatnam -530031

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57

There is no change in the Promoters

Shareholding.

President of India is holding 100% shareholding.

President of India is holding 100% shareholding

and other individuals is holding shares for and

on behalf of President of India only.

iii) Change in Promoter's Shareholding (please specify, if there is no change) - No Change

Shareholding at the beginning Cumulative Shareholding of the year during the yearNo. of shares % of total shares No. of shares % of total shares

of the company of the company1. At the beginning of the year

Date wise Increase / Decrease inPromoters Shareholding during theyear specifying the reasons forincrease / decrease (e.g. allotment /transfer / bonus / sweat equity etc) :At the End of the year

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

Shareholding at the beginning Cumulative Shareholding of the year during the yearNo. of shares % of total shares No. of shares % of total shares

of the company of the company1. At the beginning of the year

Date wise Increase / Decrease inShareholding during the yearspecifying the reasons for increase /decrease (e.g. allotment / transfer /bonus / sweat equity etc):At the End of the year ( or on the dateof separation, if separated during the year)

v) Shareholding of Directors and Key managerial Personnel:

Shareholding at the beginning Cumulative Shareholding of the year during the yearNo. of shares % of total shares No. of shares % of total shares

of the company of the company1. P K Rath

At the beginning of the year - - - -Date wise Increase / Decrease inShareholding during the yearspecifying the reasons for increase / 200 0.000004 200 0.000004decrease (e.g. allotment / transfer /bonus / sweat equity etc): 100 Sharesreceived from Shri P Madhusudanon 03.08.2018 & 100 Shares receivedfrom Shri P C Mohapatra on 04.01.2019.At the End of the year ( or on the dateof separation, if separated during the year) 200 0.000004 200 0.000004

58

Sl No Particulars

Sl No Particulars

Sl No Particulars

2. P. RAYCHAUDHURYAt the beginning of the year 100 0.000002 100 0.000002Date wise Increase / Decrease in Shareholding 100 0.000002 100 0.000002during the year specifying the reasons for increase / decrease (e.g. allotment / transfer / bonus / sweatequity etc): Shares received fromShri P Madhusudan on 03.08.2018At the End of the year ( or on the date ofseparation, if separated during the year) 200 0.000004 200 0.000004

3. K C DASAt the beginning of the year 100 0.000002 100 0.00002Date wise Increase / Decrease in Shareholdingduring the year specifying the reasons for incre/decrease (e.g. allotment / transfer / bonus / sweatequity etc):At the End of the year ( or on the date ofseparation, if separated during the year) 100 0.000002 100 0.000002

4. V V Venu Gopal RaoAt the beginning of the year - - - -Date wise Increase / Decrease in Shareholdingduring the year specifying the reasons for increase/decrease (e.g. allotment / transfer / bonus / sweat 100 0.000002 100 0.000002equity etc)Shares received fromShri P Madhusudan on 03.08.2018At the End of the year ( or on the date of separation,if separated during the year) 100 0.000002 100 0.000002

5. P C MohapatraAt the beginning of the year 100 0.000002 - -Date wise Increase / Decrease in Shareholdingduring the year specifying the reasons for increase/decrease (e.g. allotment / transfer / bonus / sweat 100 0.000002 - -equity etc): Shares Transferred toShri P K Rath on 04.01.2019At the End of the year ( or on the date of separation,if separated during the year) 0 - - -

6. P MadhusudanAt the beginning of the year 300 0.000006 - -Date wise Increase / Decrease in Shareholdingduring the year specifying the reasons for increase/decrease (e.g. allotment / transfer / bonus / sweatequity etc): Shares of 100 each Transferred toShri P K Rath, Shri P Raychaudhury & Shri V V Venu Gopal Rao on 03.08.2018 300 0.000006 - -At the End of the year ( or on the date of separation,if separated during the year) 0 - - -

NIL

59

1. SARASWATI PRASAD

At the beginning of the year 100 0.000002 100 0.000002

Date wise Increase / Decrease in

Shareholding during the year specifying

the reasons for increase / decrease

(e.g. allotment / transfer / bonus / sweat

equity etc):

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

separation, if separated during the year) 100 0.000002 100 0.000002

2. RUCHIKA CHAUDHRY GOVIL

At the beginning of the year 100 0.000002 100 0.000002

Date wise Increase / Decrease in

Shareholding during the year specifying

the reasons for increase / decrease

(e.g. allotment / transfer / bonus / sweat

equity etc):

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

separation, if separated during the year) 100 0.000002 100 0.000002

Shareholding of Directors

Note : Above shares are holding for and on behalf of President of India.

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

NIL

NIL

Particulars Secured Loans Unsecured Deposits Totalexcluding deposits Loans Indebtedness

Indebtedness at the beginning of the financial yeari) Principal Amount 10156.28 6519.19 NIL 16675.47

ii) Interest due but not paid 0 0 NIL 0

iii) interest accrued but not due 10.70 15.13 NIL 25.83

Total (i+ii+iii) 10166.98 6534.33 NIL 16701.31

Change in indebtedness during the financial year

l Addition 4815.83 273.75 NIL 5089.58

l Reduction 0 (2191.92) NIL (2192.92)

Net Change 4815.83 (1918.17) NIL 2897.66

Indebtedness at the end of the financial year

i) Principal Amount 14195.63 4615.96 NIL 19591.58

ii) Interest due but not paid 0 0 NIL 0

iii) interest accrued but not due 7.19 0.20 NIL 7.38

Total (i+ii+iii) 14982.81 4616.15 NIL 19598.97

Indebtedness includes borrowings from Banks & Commercial Papers and it includes both working capital & Capex borrowings.

60

VI. REMUNERATION OF DIRECTORS AND KEY MANAGERIAL PERSONNELA. Remuneration to Managing Director, Whole-time Directors and/or Manager:

Note: Gross Salary of Shri P Madhusudan is from 01.04.2018 to 31.05.2018, However, payment towards Leave encashment is made in June 2018. Gross Salary of Shri P C Mohapatra is from 01.04.2018 to 31.10.2018, However, Gratuity was paid in the month of February, 2019. * includes taxable retirement benefits

B. Remuneration to other directors: (Amount in )

Sl Particulars of Name of MD / WTD/ Manager (Shri) (Amount in )No Remuneration P K Rath P.Madhu- P.C. P.Ray- Kishore V V Venu Total

sudan Mohapatra Chaudhury Chandra Gopal Rao (in )Das

1 Gross salary(a) Salary as per provisions contained in section 17(1) of the Income Tax Act,1961 2885481 3956027 3910545 2906397 2566906 2888100 19113457(b) Value of perquisites u/s 17(2) Income Tax Act,1961 334258 117195 370222 348403 206920 349456 1726453(c) Profits in lieu of salary u/s 17(3) Income Tax Act,1961 0 0 0 0 0 0 0

2 Stock Option 0 0 0 0 0 0 03 Sweat Equity 0 0 0 0 0 0 04 Commission 0 0 0 0 0 0 0

- as % of profit 0 0 0 0 0 0 0- Others, specify… 0 0 0 0 0 0 0

5 Others, please specify 0 0 0 0 0 0 0Total (A) 3219739 *4073223 *4280767 3254800 2773826 3237556 20839910Ceiling as per the Act Not Applicable as Section 197 of the Companies Act, 2013 shall not apply to Govt. Companies.

Name of Directors (Shri)Sl Particulars of S K S K K M Padma Sunil Ashwini TotalNo Remuneration Srivastava Mishra nabhan Gupta Mehra (in )

(upto (upto12.11.2018) 12.11.2018)

1 Independent Directors(a) Fee for attending Board/ Committee meetings 460000 600000 380000 620000 500000 2560000(b) Commission 0 0 0 0 0 0(c) Others, 0 0 0 0 0 0Total (B) (1) 460000 600000 380000 620000 500000 2560000

2 Other Non-Executive Directors(a) Fee for attending Board/ Committee meetings 0 0 0 0 0 0(b) Commission 0 0 0 0 0 0(c) Others, 0 0 0 0 0 0Total (B) (2) 0 0 0 0 0 0Total (B) (1) + (B)(2) 0 0 0 0 0 0Total Managerial Remuneration 460000 600000 380000 620000 500000 2560000Overall Ceiling as per the Act Not Applicable as Section 197 of the Companies Act, 2013 shall not apply to Govt. Companies.

61

C. Remuneration to Key Managerial Personnel other than MD/Manager/WTD

Key Managerial Personnel (Shri.) Total

Company CFO* AmountCEO ̂ Secretary ( )

Gross salary:

(a) Salary as per provisions contained in section

17(1) of the Income Tax Act,1961 1444510 1444510

(b) Value of perquisites u/s 17(2) Income Tax Act,1961 18634 18634

(c) Profits in lieu of salary u/s 17(3) Income Tax Act,1961 0 0

2 Stock Option 0 0

3 Sweat Equity 0 0

4 Commission: - As % of profit 0 0

- Others, specify…………… 0 0

TOTAL 1463144 1463144

Note: ^ The CEO position is held by CMD. Hence, no separate remuneration as CEO.

* Shri V V Venu Gopal Rao, Director (Finance) as Director (Finance) & CFO of the Company.

VII. PENALTIES / PUNISHMENT / COMPOUNDING OF OFFENCES: ………… NIL

Section of the Brief Details of Penalty / Authority [RD / Appeal made,

Type Companies Act Description Punishment/ compounding NCLT/ COURT] if any (give

fees imposed Details)

A.COMPANY

Penalty

Punishment

Compounding

B.DIRECTORS

Penalty

Punishment

Compounding

C. OTHER OFFICERS IN DEFAULT

Penalty

Punishment

Compounding

****

Particulars of RemunerationSl.No.

NIL

NIL

NIL

As

per

Table

Vi(A)

As

per

Table

Vi(A)

62

A) CONSERVATION OF ENERGY(a)Specific Energy Consumption (Gcal/tCS) &

CO2 Emissions (Tons/tCS):

Year SEC (Gcal/tCS) CO2emissions (Tons/tCS)

2017-18 6.05 2.62

2018-19 5.98 2.59

*SEC as per PM trophy

(b) Energy Conservation measures taken up at RINL during the year 2018-19.

� Commissioning & Stabilization of Steam Turbineof Coke Oven Battery-5 and generated 6.07 MW.

� Improvement in gross coke yield at Coke Oven from72.34% to 72.88%

� Improvement in Tar yield at Coke Oven from 3.08% to 3.13%.

� Increasing in Pulverized Coal Injection (PCI) in BlastFurnace from 53.6 Kg/tHM to 59.2 Kg/tHM.BF-3 PCI increased from 76 kg/tHM to 95.4kg/ tHM.BF-2 PCI increased from 4 kg/tHM to 27.8 Kg/tHM.

� Improvement in LD gas yield at SMS-1 from 95Ncum/tCS to 104 Ncum/tCS

� Improvement in Power Generation at CPP-2 from76.39 MW to 104.02 MW

� Improvement in Power Generation at BPTS from10.73 MW to 11.65 MW

� Improvement in Solar Power Plant generation from0.84 MW to 0.90 MW

Due to these measures, Specific EnergyConsumption reduced from 6.05 Gcal/tCS in 2017-18to 5.98 Gcal/tCS during the year 2018-19.

(i) Verification CDM project titled "Top PressureRecovery Turbine (TRT) of BF-3" has beencompleted. DOE uploaded Final Verification Reportto UNFCCC website and recommended forissuance of 58,871 CERs to RINL.

Energy Saving facility

Total volume of LDGas recovered atLD Gas recoveryplant

Total powergenerated at BackPressure TurbineStation (BPTS) &COB4 turbine &COB5 turbine

Total powergenerated at TopRecovery Turbineand GasExpansion TurbineStation (GETs)

Total powergenerated fromWaste heatrecovery of Sinterplant straight linecooler(NEDO).

Units

MNCum

MWH

MWH

MWH

EnergyReco-vered

514

218368

56527

779

BoilerCoal

Saved(tons)

304315

174694

45222

623

Reductionof CO

2

emission(tons)

477775

274270

70998

978

Annexure -VII to Directors’ Report

REPORT ON CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION ETC.(Information in accordance with the provisions of Section 134(3)(m) of the Companies Act, 2013

read with Rule 8 of the Companies (Accounts) Rules, 2014.)

(MNcum-Million Normal Cubic Meters,MWH-Mega Watt Hours)

(d) (i) Waste Heat Recovery Systems

(ii) RINL would be complying PAT 2nd cycle targets ofBureau of Energy Efficiency. EngagingMeasurement & Verification agency for verificationof PAT 2nd cycle Annual Energy Consumptionreturn (2018-19) is under progress.

(c)Energy conservation plans under progress:

“Stabilization of Pulverized coal injection in BF-2”

63

(e) Awards

RINL has been awarded "Excellent EnergyEfficient Unit Award "by CII Godrej GreenBusiness Center for the year 2018 at Hyderabadduring National Competition for Excellence inEnergy Management-2018.

(f) Clean Development Mechanism:

The Progress of CDM projects is as given below.

1. Status of registration of the projects

(a) The CDM project titled "Top pressure RecoveryTurbine (TRT) of BF-3" was registered withUNFCCC with effect from 23rd April 2014.

(b) The CDM project titled "Power Generation fromCooling of Coke in Coke Dry Cooling Plant ofCO Battery-4" was registered with UNFCCC witheffect from 13th August 2014.

(c) The CDM project titled "Waste heat recoveryfrom flue gases of BF 3 stoves for pre heatingof Air & Gas "was registered with UNFCCC witheffect from 26th Jan' 2015.

2. Status of Validation of the projects

The CDM project titled "Electricity Generationof 120 MW by using waste BF gas" is positivelyvalidated and recommended for registration.Processing for registration fee is deferred dueto depressed market conditions of CERmarkets.

3. Status of verification of the projects

� UNFCCC issued 70516 CERs for Verificationof CDM project titled "Power Generation fromCooling of Coke in Coke Dry Cooling Plant ofCO Battery-4 for the Period: 13th Aug' 2014 to12th Aug' 2015.

� The CDM project titled "Top pressure RecoveryTurbine (TRT) of BF-3" was registered with

UNFCCC with effect from 23rdApr 2014. Verificationprocess completed, DOE recommended forissuance of 58,871 CERs to RINL.

� For the CDM project titled "Waste heat recoveryfrom flue gases of BF 3 stoves for pre heatingof Air & Gas "was registered with UNFCCC witheffect from 26th Jan 2015. The Verificationprocess under progress.

(g) RINL observed Energy Conservation Week from7th Dec' 2018 to 14th Dec' 2018.The programmestarted on 7th Dec' 2018 with TownshipUnplugged Campaign for voluntarily switch offelectrical appliances from 6 PM to 8 PM asgesture for conservation of energy. Organizedvarious competitions( Quiz, Slogan, Postercompetition and best Departmental EnergyTeam, Innovative Energy Conservation Project)were conducted to increase awareness onEnergy Conservation for employees as well asschool children. Energy ManagementDepartment (EMD) employees organized EnergyConservation Road Show at Technical TrainingInstitute on 14-12-2018 to commemorateNational Energy Conservation Day. Employeesof EMD displayed placards depicting EnergyConservation and Energy Saving themes.

(i) The steps taken by the Company for utilizingalternate sources of Energy:

� RINL has installed 5MW ground mounted solarpower PV plant in December' 2016.

� 5 MW Solar Power PV Plant has generated 7857MWH of Solar Energy during year 2018-19.

� RINL also identified 3 buildings for installingRoof top solar PV plants to generate solarpower from roof top installations

(ii) Usage of By-product gases in CaptivePower Plants

Name of Fuelused in TPP

Coke Oven Gas

BF gas

Units

MNCum

MNCum

Value

482

4380

BoilerCoal

Saved(tons)

676444

1099296

Reductionof CO2

emission(tons)

1062017

1725894

Unit

Solar PowerPlant Generation

Units

MWH

Value

7857

Reduction ofCO2 emission

(tons)

9868

64

Area Major Unit Technology Benefits

1. Units implemented as part of ExpansionCircular cooler and Multi slit burners Energy efficiency

Waste heat recovery from sinter cooler Reduction in energy consumption andpower generation

Profilometer Improved process controlCopper staves in high heat zones &hearth bottom cooling

Better campaign life

Pulverized Coal Injection Reduced coke consumption & improvedProductivity.

New SinterPlant-3

New BlastFurnace-3

New LDConverter

SinterMaking

IronMaking

Steelmaking

Combined blowing Reduced consumption of Ferro Alloys,Better Yield & Quality

Secondary fume extraction system Cleaner Environment

Contour & bath level measurement Measurement of refractory lining

(ii) The benefits being derived like product improvement, cost reduction, product development orimport substitution

In recent times, the major Units listed below are implemented as part of Expansion and Modernization ofthe existing Units.

Auto mould level control Reduction in breakouts & improved Productivity.

100% billet casting Energy saving

Electro Magnetic Stirrer Cleaner and homogeneous steel

NewCCM

Steel MeltShop -SecondaryMetallurgy

Oxygen enrichment

RH Degasser Low Hydrogen Steel

B) TECHNOLOGY ABSORPTION

(i) Efforts made towards technologyabsorption

In RINL projects are implemented with thelatest technology as on that date. The effortsput in implementing the latest technologies hasplaced RINL in eminent position in Indian SteelIndustry. The absorption of the Technology isdone in the following ways:

a. The equipment and systems already existing arebeing modified for improving quality of product,efficiency and the equipment availability.

b. The technological units are revamped forupgrading by major capital repairs withimproving technologies.

c. Plant Expansion is being extended to increasethe production volume and also to improve thequality or products and to meet marketrequirements.

In order to achieve the objective of absorptionof technology, the following are beingincorporated by RINL.

l Conduct of workshops for exchange of knowledge.

l Undertaking study tours to other Steel Plantsin India as well as abroad.

l Inviting Consultants and technology suppliers forproviding insight of latest technologies available.

l Attending Seminars and Conferences.

l Scanning of published articles.

l Collaboration with professional organizatio

Twin Ladle Furnace. Increase in productivity, Lesserinvestment/space compared to twosignle ladle furnaces.

(ii) The capital investment on Energy conservation equipments: Nil

65

Mills

PowerPlant

CRMP

Wire Rod High speed WRM Increased productivity

Mill-2 (105-110m/s)

Integration of Furnace Control with Mill Control Better Fuel Optimization

Special Bar Mill 20-45mm size in straight & coil Reduced wastage for end user

Free size rolling Customized sizes with tolerance of +/-0.1 mm

Structural Mill High speed roughing stands to produce Increased productivity

75-175 mm structurals

Power Plant-2 Surplus BF Gas fired boiler Use of surplus BF gas and improvedefficiency of power generation

CRMP- 2 Vertical shaft kiln More Productivity, Low maintenance costand better environmental controls

Sinter Sinter plant-1&2 Waste heat recovery from Sinter cooler and Reduced in energy consumptionMaking Energy efficient ignition furnace

Closed circuit coke crushing Reduced Specific Coke Consumption

Iron Blast Furnace- Copper staves in high heat zones and Hearth Better campaign life, reduction inmaking 1&2 bottom cooling with water Refractory and increased volume

Pulverized coal injection Reduced coke consumption & improvedOxygen enrichment productivity.

Steel LD Converters Combined blowing Reduced consumption of Ferro Alloys.making Improved in productivity. Better Yield and

Quality.Secondary fume extraction Cleaner Environment and Cleaner steel.

Area Major Unit Technology Benefits

2. Units revamped

3) RESEARCH & DEVELOPMENT (R & D)

1. Specific areas in which R&D carried out bythe company

Research & Development in RINL is mainlydoing projects in the areas of processimprovement, environment protection, wastemanagement, cost reduction, new productdevelopment and new technology development.

2. Benefits derived as a result of the aboveR&D

(a) Feasibility study on usage of Ladle Furnace (LF)slag as a replacement to synthetic slag

Synthetic slag is used as ladle flux foraccelerating the refining reactions at SMS. AsLF slag has considerable amount of CaO (45-55%) and Al

2O

3(18-22%), it can be used as

replacement to synthetic slags. LF slagmineralogy is also compatible with CaO-Al

2O

3based synthetic slags. This project will help insolid waste utilization, reduction in environmentpollution and has a saving potential of about 4.4 Cr./ annum considering 25% replacement.

(b) Study of De-phosphorization during Steelmaking in SMS-1

Phosphorus control is one of the importantaspect of the primary steelmaking in LDConverter. If the phosphorus is not reduced tothe desired levels by the end of the blow, it mayaffect the mechanical properties of finishedproduct. The grade diversion due to highphosphorus is a serious concern for SteelMelting Shop. The main objective of this studyis to reduce the number of grade diversion andoff grades due to high Phosphorus (>=0.04%).

(c) Identifying causes for welding of rolled productin STM of VSP

Structural mill (STM) has provision of disc sawwhich cuts the rolled products into the requiredlength. During cutting process these touchingbars especially I-beam and rounds are gettingwelded at the point of contact. Welding ofproduct obstruct the batching operation andincreases the cycle time. This may lead toincrease in downtime and reduce productivityof STM. Outcome of the project will help

66

will meet the requirement of forged rail wheelsfor loco motives and high speed trainssubstituting wheels being imported by Railwayshitherto. The facility will be commissioned inSept.2019.

COB#5 PROJECT

a) The CLAUS Technology has been importedand installed in the new Coal Chemicals Plantof COB#5 project, to extract elementalSulphur from the raw coke oven gasesproduced in coke oven battery no.5.

b) The coke oven gas exhausters (two nos.)have been imported from CZECH Republicand being installed in the new CoalChemicals Plant to handle the gasesgenerated in the new coke oven battery no.5.

c) One no. coke oven gas exhauster is beingimported from Russia under theAugmentation Project for augmenting theexisting five exhausters.

d) Level II automation is being implemented inCoke oven battery no.5. It has been importedfrom M/s Giprokoks, Ukraine

Turbo Blower-5

Turbo Blower-5 was ordered on BHEL whereinBHEL will supply the drive steam turbine & itsauxiliaries and whereas Blower will be importedfrom Man Diesel & Turbo SE, Germany byBHEL.

Turbo Blower-5 was connected to cold blastheader-3 in November-2017.

(iv) Expenditure on R&D :

a. Capital 3.16 Cr

b. Revenue/recurring 15.91 Cr

c. Total 19.07 Cr

d. Total R&D expenditure

as a percentage of 0.09%

total turnover

C) FOREIGN EXCHANGE EARNINGS ANDOUTGO:

The Foreign Exchange Earnings during the yearwas 1310.00 Crores and the Foreign ExchangeOutgo during the year was 8411.43 Croreswhich includes value of imports of 8372.53Crores (Includes 463.19 Crores on Expansionactivities / Capital Goods) and Expenditure inforeign currency is of 38.99 Crores.

*******

understand the reason for welding of adjacentbars while cutting and solution to the problemwill help STM to achieve its rated capacity.

(d) Development of Boron Steel grades

Boron steel grades are widely used inautomobile applications like high strengthfasteners, dash panel, safety bars around seats,door guard beams, inner B-pillarreinforcements, bumper reinforcements, etc.This internal project aims to have a better NSRby developing Boron grade steels like 10B21and 15B24. Introduction of this grade will helpin capturing the market and diversification ofproduct portfolio in RINL.

(e) Feasibility study on Utilization of fly ash pelletsas Ladle &Tundish covering compound

The objective of this internal project is to utilizepellets / granules made from fly ash as ladlecovering compound and tundishcoveringcompound at Steel Melting Shop. This projecthelps in valorization of fly ash,an industrial solidwaste generated during combustion of coal andimprove the working conditions as the granulesdo not fly off as rice husk ash which is presentlyin use. This project has a potential of savingabout 5 Crores/year.

iii). In case of imported technology (importedduring the last three years reckoned fromthe beginning of the financial year)

PULVERISED COAL INJECTION (PCI)

About 90% of coking coal requirements arebeing met through imports. To reduce the cokeconsumption, the pulverized coal injectiontechnology has been imported from M/s.CERI,Republic of China. High grade pulverized non-coking coals with projected injection rate of150-200 kgs/tonne of hot metal, with nitrogenas injection media, has been envisaged forinjection into blast furnace.

CONTINUOUS CASTING MACHINE NO.4 (CCM):

Continuous Casting Machine No.4 has been satup with high radius of casting for the first timein India. The high radius of casting allowsbigger size rounds and blooms to be cast in themachine. Rounds of upto 510 mm dia can becast in CCM.FORGED WHEEL PLANT (FWP):The state of the art Forged Wheel Plant withhigh degree of automation is being installed byRINL at the Modern Coach Factory premisesof Railways at Lalganj, Raibareli, UP. This facility

67

Annexure -VIII to Directors’ Report

68

69

70

71

M. Bhaskara Rao & Co.Chartered Accountants

TO THE MEMBERS OF RASHTRIYA ISPAT NIGAMLIMITED

Report on the Audit of the Standalone FinancialStatements

Opinion

We have audited the accompanying standalone IndAS financial statements of Rashtriya Ispat NigamLimited ("the Company"), which comprise the BalanceSheet as at March 31, 2019 and the Statement of Profitand Loss (including Other Comprehensive Income),the Cash Flow Statement and the Statement ofChanges in Equity for the year then ended, and asummary of the significant accounting policies andother explanatory information (hereinafter referred toas "the standalone financial statements").

In our opinion and to the best of our information andaccording to the explanations given to us, the aforesaidstandalone financial statements give the informationrequired by the Companies Act, 2013 ("the Act") in themanner so required and give a true and fair view inconformity with the Indian Accounting Standardsprescribed under section 133 of the Act read with theCompanies (Indian Accounting Standards) Rules,2015, as amended, ("Ind AS") and other accountingprinciples generally accepted in India, of the state ofaffairs of the Company as at March 31, 2019, the profitand total comprehensive income, changes in equityand its cash flows for the year ended on that date.

Basis for Opinion

We conducted our audit of the standalone financialstatements in accordance with the Standards onAuditing specified under section 143(10) of the Act(SAs). Our responsibilities under those Standards arefurther described in the Auditor's Responsibilities forthe Audit of the Standalone Financial Statementssection of our report. We are independent of theCompany in accordance with the Code of Ethics issuedby the Institute of Chartered Accountants of India (ICAI)

together with the ethical requirements that are relevantto our audit of the standalone financial statementsunder the provisions of the Act and the Rules madethereunder, and we have fulfilled our other ethicalresponsibilities in accordance with these requirementsand the Code of Ethics. We believe that the auditevidence we have obtained is sufficient and appropriateto provide a basis for our opinion.

Emphasis of Matter:

We draw attention to the following matters in Notes toInd AS financial statements:

1) Note 5 to the Ind AS financial statements,regarding investment made in EasternInvestments LTD.

2) Note 25 (a) to the Ind AS financial statements,regarding an amount of Rs.13.12 crores ofaccrued interest upto 31.03.2019 accountedbased on relief given by CIT (A)-9 Hyderabadvide common order dt. 30.04.2019 for AY 2012-13 to AY2014-15.

3) Note 25 (c) to the Ind AS financial statements,regarding Insurance claim lodged amounting to 30.59 crores accounted based on the

recommendation of the surveyor.

4) Note 31A of the Ind AS financial statements,regarding write back of pension liabilities &Reversal of wages and salary aggregating to 225.40 crores.

Our opinion is not modified in respect of these matters.

Information Other than the Standalone FinancialStatements and Auditor's Report Thereon

The Company's Board of Directors is responsible forthe preparation of the other information. The otherinformation comprises the information included in theManagement Discussion and Analysis, Board's Reportincluding Annexures to Board's Report, BusinessResponsibility Report, Corporate Governance and

Enclosure to Directors’ Report

INDEPENDENT AUDITOR'S REPORT

72

Shareholder's Information, but does not include thestandalone financial statements and our auditor'sreport thereon.

Our opinion on the standalone financial statementsdoes not cover the other information and we do notexpress any form of assurance conclusion thereon.

In connection with our audit of the standalone financialstatements, our responsibility is to read the otherinformation and, in doing so, consider whether the otherinformation is materially inconsistent with thestandalone financial statements or our knowledgeobtained during the course of our audit or otherwiseappears to be materially misstated.

If, based on the work we have performed, we concludethat there is a material misstatement of this otherinformation, we are required to report that fact. We havenothing to report in this regard.

Management's Responsibility for the StandaloneFinancial Statements

The Company's Board of Directors is responsible forthe matters stated in section 134(5) of the Act withrespect to the preparation of these standalone financialstatements that give a true and fair view of the financialposition, financial performance, total comprehensiveincome, changes in equity and cash flows of theCompany in accordance with the Ind AS and otheraccounting principles generally accepted in India. Thisresponsibility also includes maintenance of adequateaccounting records in accordance with the provisionsof the Act for safeguarding the assets of the Companyand for preventing and detecting frauds and otherirregularities; selection and application of appropriateaccounting policies; making judgments and estimatesthat are reasonable and prudent; and design,implementation and maintenance of adequate internalfinancial controls, that were operating effectively forensuring the accuracy and completeness of theaccounting records, relevant to the preparation andpresentation of the standalone financial statementsthat give a true and fair view and are free from materialmisstatement, whether due to fraud or error.

In preparing the standalone financial statements,management is responsible for assessing theCompany's ability to continue as a going concern,

disclosing, as applicable, matters related to goingconcern and using the going concern basis ofaccounting unless management either intends toliquidate the Company or to cease operations, or hasno realistic alternative but to do so.

The Board of Directors are responsible for overseeingthe Company's financial reporting process.

Auditor's Responsibilities for the Audit of theStandalone Financial Statements

Our objectives are to obtain reasonable assuranceabout whether the standalone financial statements asa whole are free from material misstatement, whetherdue to fraud or error, and to issue an auditor's reportthat includes our opinion. Reasonable assurance is ahigh level of assurance, but is not a guarantee that anaudit conducted in accordance with SAs will alwaysdetect a material misstatement when it exists.Misstatements can arise from fraud or error and areconsidered material if, individually or in the aggregate,they could reasonably be expected to influence theeconomic decisions of users taken on the basis of thesestandalone financial statements.

As part of an audit in accordance with SAs, we exerciseprofessional judgment and maintain professionalskepticism throughout the audit. We also:

l Identify and assess the risks of materialmisstatement of the standalone financialstatements, whether due to fraud or error, designand perform audit procedures responsive to thoserisks, and obtain audit evidence that is sufficientandappropriate to provide a basis for our opinion. Therisk of not detecting a material misstatementresulting from fraud is higher than for one resultingfrom error, as fraud may involve collusion, forgery,intentional omissions, misrepresentations, or theoverride of internal control.

l Obtain an understanding of internal financialcontrols relevant to the audit in order to designaudit procedures that are appropriate in thecircumstances. Under section 143(3)(i) of the Act,we are also responsible for expressing our opinionon whether the Company has adequate internalfinancial controls system in place and the operatingeffectiveness of such controls.

73

l Evaluate the appropriateness of accountingpolicies used and the reasonableness ofaccounting estimates and related disclosuresmade by management.

l Conclude on the appropriateness of management'suse of the going concern basis of accounting and,based on the audit evidence obtained, whether amaterial uncertainty exists related to events orconditions that may cast significant doubt on theCompany's ability to continue as a going concern.If we conclude that a material uncertainty exists,we are required to draw attention in our auditor'sreport to the related disclosures in the standalonefinancial statements or, if such disclosures areinadequate, to modify our opinion. Our conclusionsare based on the audit evidence obtained up tothe date of our auditor's report. However, futureevents or conditions may cause the Company tocease to continue as a going concern.

l Evaluate the overall presentation, structure andcontent of the standalone financial statements,including the disclosures, and whether thestandalone financial statements represent theunderlying transactions and events in a mannerthat achieves fair presentation.

We communicate with those charged withgovernance regarding, among other matters, theplanned scope and timing of the audit and significantaudit findings, including any significant deficienciesin internal control that we identify during our audit.

We also provide those charged with governancewith a statement that we have complied with relevantethical requirements regarding independence, andto communicate with them all relationships and othermatters that may reasonably be thought to bear onour independence, and where applicable, relatedsafeguards.

Report on Other Legal and RegulatoryRequirements

1. As required by the Companies (Auditor's Report)Order, 2016 ("the order"), issued by the CentralGovernment of India in terms of Sub-Section (11)

of Section 143 of the Act, we give in the"Annexure - A", a statement on the mattersspecified in paragraphs 3 and 4 of the Order, tothe extent applicable.

2. As required by Section 143 (3) of the Act, wereport that:

a. We have sought and obtained all the informationand explanations which to the best of ourknowledge and belief were necessary for thepurposes of our audit.

b. In our opinion, proper books of account asrequired by law have been kept by the companyso far as it appears from our examination ofthose books and proper returns adequate for thepurposes of our audit have been received fromthe branches not visited by us.

c. The Balance Sheet, the Statement of Profit andLoss, the Cash Flow Statement and Statementof Changes in Equity dealt with by this Reportare in agreement with the books of account andwith the returns received from the branches notvisited by us.

d. In our opinion, the aforesaid standalone financialstatements comply with the AccountingStandards specified under Section 133 of the Act,read with Rule 7 of the Companies (Accounts)Rules, 2014.

e. The provisions of Section 164 (2) of the Act arenot applicable to the Government Companiesvide notification No. G.S.R.463[E] dated 5th June,2015 of Ministry of Corporate Affairs.

f. With respect to the adequacy of the internalfinancial controls over financial reporting of theCompany and the operating effectiveness ofsuch controls, refer to "Annexure B" to this report.

g. With respect to the other matters to be includedin the Auditor's Report in accordance with Rule11 of the Companies (Audit and Auditors) Rules,2014, in our opinion and to the best of ourinformation and according to the explanationsgiven to us:

74

i. The Company has disclosed the impact of pending litigations on its financial position in its Ind AS financialstatements - Refer Note 39 to the Ind AS financial statements;

ii. the Company did not have any long-term contracts including derivative contracts for which there were anymaterial foreseeable losses; and

iii. There were no amounts which were required to be transferred to the Investor Education and ProtectionFund by the Company.

3. As required by section 143(5) of the Act, we give in "Annexure - C", a statement on the matters specified bythe Comptroller and Auditor General of India for the Company.

for M.Bhaskara Rao & Co.,Chartered Accountants

Firm Registration Number: 000459S

V. Raghunandan

PartnerMembership No: 026255

UDIN No: 19026255AAAABI3694

Date: 19.08.2019

Place: Visakhapatnam

Sd/-

75

M. Bhaskara Rao & Co.Chartered Accountants

Enclosure to Directors’ Report

Annexure A to the Independent Auditors' Report

(Referred to in paragraph 1 under 'Report on OtherLegal and Regulatory Requirements' section of ourreport of even date to the members of Rashtriya IspatNigam Limited)

(i) In respect of its fixed assets:

(a) The Company has maintained properrecords showing full particulars, includingquantitative details and situation of its fixedassets.

(b) A major portion of the fixed assets havebeen physically verified during the year bythe Management in accordance with aprogramme of verification, which, in ouropinion, provides for physical verification ofall the fixed assets at reasonable intervalshaving regard to the size of the Companyand the nature of its assets. According tothe information and explanations given tous, the discrepancies noticed on suchverification were not material and havebeen properly dealt with in the books ofaccount.

(c) According to the information andexplanations furnished to us, and based onour review, title deeds of its immovableproperties are held in the name of theCompany except in respect of land to theextent as stated in Note No.3 to standalonefinancial statements.

(ii) According to the information and explanationsfurnished to us, in respect of the Company'sinventories, physical verification of inventoriesat plants and marketing offices has beenconducted by the management at reasonableintervals during the year. In our opinion, havingregard to the nature of its business and location

of its stocks, the frequency of verification isreasonable. Further, the discrepancies noticedon such verification, between the physical stocksand the respective records were not material inrelation to the size of operations of the Companyand the same have been properly dealt with inthe books of account.

(iii) According to the information and explanationsgiven to us, the Company has not granted anyloans, secured or unsecured, to companies,firms, Limited Liability Partnerships or otherparties covered in the Register maintained underSection 189 of the Companies Act, 2013.Accordingly, reporting under clauses (a), (b) and(c) of paragraph 3(iii) of the Order does not arise.

(iv) According to the information and explanationsfurnished to us, the Company has not grantedany loans, nor made any investments or givenany guarantees or securities during the year toany of the parties specified in Sections 185 and186 of the Companies Act, 2013.

(v) In our opinion and according to the informationand explanations given to us, the Company hasnot accepted any deposits. Accordingly,reporting under provisions of paragraph 3(v) ofthe Order does not arise.

(vi) We have broadly reviewed the cost recordsmaintained by the Company pursuant to theRules in force made by the Central Governmentunder sub-section (1) of Section 148 of theCompanies Act, 2013, and are of the opinionthat, prima facie, the prescribed cost recordshave been made and maintained. We have,however, not made a detailed examination ofthe cost records with a view to determine whetherthey are accurate or complete.

76

(vii) According to the information and explanationsgiven to us, in respect of statutory dues:

(a) The Company has been generally regular indepositing undisputed statutory dues, includingProvident Fund, Employees' State Insurance,Income-tax, Sales Tax, Service Tax, CustomsDuty, Excise Duty, Value Added Tax, Cess andother material statutory dues applicable to it withthe appropriate authorities, and there were no

(viii) According to the information and explanationsgiven to us, the Company has not defaulted inrepayment of loans or borrowings to financialinstitutions, banks, government or fromdebenture holders.

(ix) The Company has not raised moneys by way ofinitial public offer or further public offer (includingdebt instruments). In our opinion and accordingto the information and explanations given to us,the term loans have been applied by theCompany during the year for the purposes forwhich they were raised.

(x) To the best of our knowledge and according tothe information and explanations given to us, nofraud by the Company and no material fraud onthe Company by its officers or employees hasbeen noticed or reported during the year.

(xi) In our opinion the provisions of section 197 readwith Schedule V to the Companies Act, 2013doesn't apply to Government Companies videnotification no. G.S.R 463(E) dated 05th June,2015 issued by Ministry of Corporate Affairs.

amounts payable in respect of the aforesaidundisputed statutory dues in arrears, as atMarch 31, 2019, for a period of more than sixmonths from the date they became payable.

(b) Details of dues of Income Tax, Sales Tax,Service Tax, Customs Duty, Excise Duty, Valueadded Tax which have not been deposited ason March 31, 2019 on account of dispute are asbelow:

Name of the Statute Nature of Dues Amount Forum where the(in Crores) dispute is pending

Finance Act, Customs & Excise duty, Service 1.05 Commissioner (Appeals)

Excise Act Income Tax VAT Tax and Cenvat 81.94 CESTAT

21.35 Supreme Court

Customs 25.30 CESTAT

The Andhra Pradesh 1.94 STAT

General Sales Sales Tax 0.47 ADC

Tax Act & C S T Act 911.66 Honourable High Court of

Andhra Pradesh

Bihar VAT Act VAT 0.05 Joint Commissioner Taxes

(JCT)

Odisha Sales Tax Act Sales Tax 0.01 Appellate Authority

West Bengal VAT Act Sales Tax 0.39 WBCTA

Maharashtra VAT Act Sales Tax 0.07 JCIT, Mumbai

WB Entry Tax Entry Tax 9.50 Kolkata High Court

Telangana Entry Tax Entry Tax 0.99 Appellate Authority

Andhra Pradesh Entry Tax 0.48 High Court

77

(xii) The Company is not a Nidhi Company and hencereporting under clause (xii) of the CARO 2016is not applicable.

(xiii) In our opinion and according to the informationand explanations given to us, the Company is incompliance with Section 177 and 188 of theCompanies Act, 2013, where applicable, for alltransactions with the related parties and thedetails of related party transactions have beendisclosed in the Standalone Ind AS FinancialStatements as required by the applicableaccounting standards

(xiv) During the year the Company has not made anypreferential allotment or private placement ofshares or fully or partly convertible debenturesand hence reporting under clause (xiv) of CARO2016 is not applicable to the Company.

(xv) In our opinion and according to the informationand explanations given to us, during the yearthe Company has not entered into any non-cash

transactions with its directors or directors of itsholding, subsidiary or associate company orpersons connected with them and henceprovisions of section 192 of the Companies Act,2013 are not applicable.

(xvi) The Company is not required to be registeredunder section 45-IA of the Reserve Bank of IndiaAct, 1934.

for M.Bhaskara Rao & Co.,Chartered Accountants

Firm RegistrationNumber: 000459S

V.RaghunandanPartner

Membership No: 026255UDIN No: 19026255AAAABI3694

Date: 19.08.2019Place: Visakhapatnam

Report on the Internal Financial Controls under Clause(i) of Sub-section 3 of Section 143 of the CompaniesAct, 2013 ("the Act")

We have audited the internal financial controls overfinancial reporting of the Company as of March 31,2019 in conjunction with our audit of the standaloneInd AS financial statements of the Company for theyear ended on that date.

Management's Responsibility for InternalFinancial Controls

The Company's management is responsible forestablishing and maintaining internal financial controlsbased on the internal control over financial reportingcriteria established by the Company considering theessential components of internal control stated in theGuidance Note on Audit of Internal Financial ControlsOver Financial Reporting issued by the Institute ofChartered Accountants of India. These responsibilitiesinclude the design, implementation and maintenanceof adequate internal financial controls that were

operating effectively for ensuring the orderly andefficient conduct of its business, including adherenceto company's policies, the safeguarding of its assets,the prevention and detection of frauds and errors, theaccuracy and completeness of the accounting records,and the timely preparation of reliable financialinformation, as required under the Act.

Auditors' Responsibility

Our responsibility is to express an opinion on theCompany's internal financial controls over financialreporting based on our audit. We conducted our auditin accordance with the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting(the "Guidance Note") and the Standards on Auditing,issued by ICAI and deemed to be prescribed underSection 143(10) of the Companies Act, 2013, to theextent applicable to an audit of internal financialcontrols, both applicable to an audit of InternalFinancial Controls and, both issued by the Institute ofChartered Accountants of India. Those Standards andthe Guidance Note require that we comply with ethical

Annexure B to the Independent Auditors' report

Sd/-

78

or timely detection of unauthorized acquisition, use,or disposition of the company's assets that could havea material effect on the financial statements.

Inherent Limitations of Internal Financial ControlsOver Financial Reporting

Because of the inherent limitations of internal financialcontrols over financial reporting, including the possibilityof collusion or improper management override ofcontrols, material misstatements due to error or fraudmay occur and not be detected. Also, projections ofany evaluation of the internal financial controls overfinancial reporting to future periods are subject to therisk that the internal financial control over financialreporting may become inadequate because ofchanges in conditions, or that the degree ofcompliance with the policies or procedures maydeteriorate.

Opinion

In our opinion, the Company has, in all materialrespects, an adequate internal financial controlssystem over financial reporting and such internalfinancial controls over financial reporting were operatingeffectively as at March 31, 2019 based on the internalcontrol over financial reporting criteria established bythe Company considering the essential componentsof internal control stated in the Guidance Note on Auditof Internal Financial Controls Over Financial Reportingissued by the Institute of Chartered Accountants ofIndia.

for M.Bhaskara Rao & Co.,Chartered Accountants

Firm Registration Number: 000459S

V.RaghunandanPartner

Membership No: 026255UDIN No: 19026255AAAABI3694

Date: 19.08.2019Place: Visakhapatnam

requirements and plan and perform the audit to obtainreasonable assurance about whether adequateinternal financial controls over financial reporting wasestablished and maintained and if such controlsoperated effectively in all material respects.

Our audit involves performing procedures to obtainaudit evidence about the adequacy of the InternalFinancial Controls system over financial reporting andtheir operating effectiveness.Our audit of internalfinancial controls over financial reporting includedobtaining an understanding of internal financial controlsover financial reporting, assessing the risk that amaterial weakness exists, and testing and evaluatingthe design and operating effectiveness of internalcontrol based on the assessed risk. The proceduresselected depend on the auditor's judgment, includingthe assessment of the risks of material misstatementof the standalone financial statements, whether dueto fraud or error.

We believe that the audit evidence we have obtainedis sufficient and appropriate to provide a basis for ouraudit opinion on the Company's internal financialcontrols system over financial reporting.

Meaning of Internal Financial Controls OverFinancial Reporting

A company's internal financial control over financialreporting is a process designed to provide reasonableassurance regarding the reliability of financial reportingand the preparation of financial statements for externalpurposes in accordance with generally acceptedaccounting principles. A company's internal financialcontrol over financial reporting includes those policiesand procedures that (1) pertain to the maintenance ofrecords that, in reasonable detail, accurately and fairlyreflect the transactions and dispositions of the assetsof the company; (2) provide reasonable assurance thattransactions are recorded as necessary to permitpreparation of financial statements in accordance withgenerally accepted accounting principles, and thatreceipts and expenditures of the company are beingmade only in accordance with authorizations ofmanagement and directors of the company; and (3)provide reasonable assurance regarding prevention

Sd/-

79

Annexure - C to the Independent Auditors' Report:

The Annexure referred to in our report to the members of the Company for the year ended on 31st March 2019. We report that:

1

2

3

Whether the company has system in place to

process all the accounting transactions through

IT System? If yes, the implications of processing

of accounting transaction outside IT system on

the integrity of the accounts along with the

financial implication, if any may be stated.

Whether there is any restructuring of an existing

loan or cases of waiver/write off of debt/loans/

interest etc. made by a lender to the company

due to the company's inablility to repay the loan?

If yes, the financial impact may be stated.

Whether funds received/receivable for specific

schemes from central/state agencies were

properly accounted for/utilized as per its term

and conditions? List the cases of deviation.

SAP is the accounting software in place where all

accounting transactions are processed through IT

system. Further we are informed that there are no

accounting transactions outside IT system.

Based on the records, information & explanations given

to us, there is no restructuring of an existing loan or

cases of waiver/write off of debt/loans/interest etc. made

by a lender to the company, during the year.

According to information given to us, funds received/

receivable for specific schemes from central/ state

agencies were properly accounted for/ utilized as per

its term and conditions.

There are no cases of deviation during the year.

for M.Bhaskara Rao & Co.,Chartered Accountants

Firm Registration Number: 000459S

V.RaghunandanPartner

Membership No: 026255UDIN No: 19026255AAAABI3694

Date: 19.08.2019Place: Visakhapatnam

Sd/-

80

Annexure -X to Directors’ Report

81

82

BALANCE SHEET AS AT 31st MARCH 2019

Particulars Notes 31st March 2019 31st March 2018I Assets

Non-current assets(a) Property, plant and equipment 3 19,013.64 16,772.14(b) Capital work-in-progress 3 3,853.75 5,224.66(c ) Other intangible assets 4 2.71 10.49(d) Intangible assets under development 4 - -(e ) Financial assets

(i) Investments 5 741.49 741.48 (ii) Loans 6 142.82 222.29 (iii) Other financial assets 7 24.14 23.28

(f) Deferred tax asset (net) 8 1,173.53 778.14(g) Other non-current assets 9 85.31 119.34

Total non-current assets 25,037.39 23,891.82Current assets

(a) Inventories 10 7,489.11 5,628.67(b) Financial assets

(i) Trade receivables 11 1,130.38 995.98(ii) Cash and cash equivalents 12 121.43 51.90(iii) Loans 6 - - (iv) Other financial assets 7 529.17 471.29

(c ) Other tax assets (net) 13 - 0.01(d) Other current assets 14 893.83 684.53

Total current assets 10,163.92 7,832.38Total assets 35,201.31 31,724.20

II Equity and liabilitiesEquity

(a) Equity share capital 15 4,889.85 4,889.85(b) Other equity 16 2,462.43 2,331.11

Total equity 7,352.28 7,220.96LiabilitiesNon-current liabilities

(a) Financial liabilities(i) Borrowings 17 9,309.26 6,545.16(ii) Other financial liabilities 18 96.38 25.90

(b) Provisions 19 1,052.47 1,012.97(c ) Deferred tax liabilities (net) 8 - -(d) Other non-current liabilities 20 13.70 82.39

Total non-current liabilities 10,471.81 7,666.42Current liabilities

(a) Financial liabilities(i) Borrowings 17 9,721.02 9,221.27(ii) Trade payables 21

- Micro Enterprises and Small Enterprises 109.63 74.67- Other than Micro Enterprises and Small Enterprises 1,551.99 1,122.90

(iii) Other financial liabilities 18 4,702.69 5,253.14(iv) Derivatives 22 - 0.60

(b) Provisions 19 639.31 668.32(c ) Other current liabilities 23 652.58 495.92

Total current liabilities 17,377.22 16,836.82Total liabilities 27,849.03 24,503.24Total Equity and liabilities 35,201.31 31,724.20

The notes 1 to 41 are an integral part of the financial statements.For and on behalf of the Board of Directors

Sd/-(P. K. Rath)

Chairman-cum-Managing Director

Sd/-(V.V. Venu Gopal Rao)

Director (Finance)and Chief Financial Officer

As per our report of even dateFor M/s M. Bhaskara Rao & Co

Chartered AccountantsFirm Regn No: 000459S

Sd/-(M Jagadeeshwara Rao)

Company Secretary

Sd/-(CA V. Raghunandan)

PartnerMembership No: 26255

Place : VisakhapatnamDate : 19-08-2019

85

( in Crores)

86

STATEMENT OF PROFIT AND LOSS FOR THE YEAR ENDED 31st MARCH 2019 ( in Crores)

Particulars Notes For the year ended For the year ended31st March 2019 31st March 2018

IncomeI Revenue from operations 24 20,492.03 14,607.18II Other income 25 346.68 265.24III Total income (I+II) 20,838.71 14,872.42IV Expenses

Cost of materials consumed 26 13,730.25 8,601.05Changes in inventory of finished goods and work-in-progress 27 (958.44) (186.34)Excise duty - 262.80Employee benefits expense 28 2,438.28 2,343.60Finance costs 29 1,277.61 938.33Depreciation and amortisation expense 30 1,057.59 778.26Other expenses 31 3,825.71 3,505.12Total expenses (IV) 21,371.00 16,242.82

V Profit/ (Loss) before exceptional items and tax (III-IV) (532.29) (1,370.40)VI Exceptional items 31A (225.40) 541.05VII Profit/ (Loss) before tax (V-VI) (306.89) (1,911.45)VIII Tax expense/ (credit):

Current tax - -Deferred tax 8 (403.60) (542.44)Earlier year adjustments - -Total Tax expense/ (credit) (VIII) 8 (403.60) (542.44)

IX Profit/ (Loss) for the year from continuing operations (VII-VIII) 96.71 (1,369.01)X Profit/ (Loss) for the year from discontinued operations - -XI Tax expense of discontinued operations - -XII Profit / (Loss) for the year from discontinued operations (after tax) (X-XI) - -XIII Profit/ (Loss) for the period (IX+XII) 96.71 (1,369.01)XIV Other comprehensive income

(i) Items that will not be re classified to profit or loss Re-measurements of defined benefit liability /asset 42.82 27.03

(ii) Income tax relating to items that will not (8.21) (6.72) be reclassified to profit or lossOther comprehensive income for the year, net of income tax 34.61 20.31

XV Total comprehensive income for the year (XIII+XIV) 131.32 (1,348.70)XVI Earnings/ (loss) per each equity share of 10 each 36

1. Basic ( ) 0.20 (2.80)2. Diluted ( ) 0.20 (2.80)

The notes 1 to 41 are an integral part of the financial statements.For and on behalf of the Board of Directors

Sd/-(P. K. Rath)

Chairman-cum-Managing Director

Sd/-(V.V. Venu Gopal Rao)

Director (Finance)and Chief Financial Officer

As per our report of even dateFor M/s M. Bhaskara Rao & Co

Chartered AccountantsFirm Regn No: 000459S

Sd/-(M Jagadeeshwara Rao)

Company Secretary

Sd/-(CA V. Raghunandan)

PartnerMembership No: 26255

Place : VisakhapatnamDate : 19-08-2019

STATEMENT OF CHANGES IN EQUITY(FOR THE YEAR ENDED 31st MARCH 2019)

b. Other equity ( in Crores)

Particulars

Balance at 1st April 2017 742.34 2,937.47 - - 3,679.81

Total comprehensive income for the

year ended 31st March 2018

Profit or loss (1,369.01) - - - (1,369.01)

Other comprehensive income (net of tax) 20.31 - 20.31

Total comprehensive income (1,348.70) - - - (1,348.70)

Balance at 31st March 2018 (606.36) 2,937.47 - - 2,331.11

Balance at 1st April 2018 (606.36) 2,937.47 - - 2,331.11

Total comprehensive income for the

year ended 31st March 2019

Profit or loss 96.71 - - - 96.71

Other comprehensive income (net of tax) 34.61 - - - 34.61

Total comprehensive income 131.32 - - - 131.32

Balance at 31st March 2019 (475.04) 2,937.47 - - 2,462.43

Retainedearnings

Capitalredemption

reserve

Reserves forredeemingpreference

shares

Other itemsof Other

ComprehensiveIncome

Total

Reserves and surplus

a. Equity share capital

Particulars Amount

Balance as at 1st April 2017 4889.85

Changes in equity share capital during 2017-18 -

Balance as at 31st March 2018 4,889.85

Changes in equity share capital during 2018-19 -

Balance as at 31st March 2019 4,889.85

( in Crores)

The notes 1 to 41 are an integral part of the financial statements.For and on behalf of the Board of Directors

Sd/-(P. K. Rath)

Chairman-cum-Managing Director

Sd/-(V.V. Venu Gopal Rao)

Director (Finance)and Chief Financial Officer

As per our report of even dateFor M/s M. Bhaskara Rao & Co

Chartered AccountantsFirm Regn No: 000459S

Sd/-(M Jagadeeshwara Rao)

Company Secretary

Sd/-(CA V. Raghunandan)

PartnerMembership No: 26255

Place : VisakhapatnamDate : 19-08-2019

87

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31st MARCH 2019 ( in Crores)

Particulars For the year ended For the year ended31st March 2019 31st March 2018

Cash flows from operating activitiesProfit/ (loss) for the year (before tax) (306.89) (1,911.45)Adjustments for:Depreciation and amortisation expense 1,057.59 778.26Finance costs 1,277.61 938.33Interest income from banks (0.30) (0.17)Dividend income (0.04) (0.09)(Gain) loss on sale of Property, plant and equipment (0.99) (0.42)Unrealised Net (Gain)/ Loss arising on Financial instruments designated as FVTPL 0.00 0.60Operating profit before changes in assets and liabilities 2,026.98 (194.94)Changes in assets and liabilities :(Increase) decrease in inventories (1,860.44) (861.82)(Increase) decrease in trade receivables and loans (54.93) (110.47)(Increase) decrease in other financial assets (58.74) (32.07)(Increase) decrease in other non current assets 22.12 15.01(Increase) decrease in other current assets (189.54) (129.02)Increase (decrease) in trade payables 464.05 159.72Increase (decrease) in other financial liabilities (87.23) 673.53Increase (decrease) in provisions 53.31 606.67Increase (decrease) in non-current liabilities (68.69) 74.68Increase (decrease) in other current liabilities 156.07 (48.92)Cash generated from operating activities 402.96 152.36Income tax paid (net of refund) (19.76) 80.96Net cash from (used in ) operating activities (A) 383.20 233.32Cash flows from investing activitiesAcquisition of property, plant and equipment (1,718.16) (1,521.34)Proceeds from sale of property, plant and equipment 0.99 0.70Interest received from banks 0.30 0.17Investment in fixed deposits 0.37 (0.97)Dividend income 0.04 0.09Acquisition of investments (0.01) (0.60)Net cash flow from (used in) investing activities (B) (1,716.47) (1,521.95)Cash flows from financing activitiesProceeds from (Repayment of ) long term borrowings 2,416.35 1,297.50Proceeds from (Repayment of) short term borrowings 499.75 1,172.43Interest paid (1,512.93) (1,184.27)Net cash flow from (used in) financing activities ( C) 1,403.17 1,285.66Net increase (decrease) in cash and cash equivalents (A+B+C) 69.90 (2.97)Cash and cash equivalents at 1st April 39.26 42.23Cash and cash equivalents at 31st March 109.16 39.26Reconciliation of cash and cash equivalent as per the balance sheet 31st March 2019 31st March 2018Cash and cash equivalent as per the cash flow statement 109.16 39.26Other bank balances not considered above:- Bank deposits with maturity more than 3 months 4.39 4.12- Prime Minister's Trophy Award Fund 7.88 8.52Cash and cash equivalent as per balance sheet 121.43 51.90

The Cash flow statement has been prepared under indirect method in accordance with Ind AS 7.

The notes 1 to 41 are an integral part of the financial statements.For and on behalf of the Board of Directors

Sd/-(P. K. Rath)

Chairman-cum-Managing Director

Sd/-(V.V. Venu Gopal Rao)

Director (Finance)and Chief Financial Officer

As per our report of even dateFor M/s M. Bhaskara Rao & Co

Chartered AccountantsFirm Regn No: 000459S

Sd/-(M Jagadeeshwara Rao)

Company Secretary

Sd/-(CA V. Raghunandan)

PartnerMembership No: 26255

Place : VisakhapatnamDate : 19-08-2019

88

1. Company overviewRashtriya Ispat Nigam Limited is a companydomiciled in India. The Company’s registered officeis Administrative Building, Visakhapatnam SteelPlant (VSP), Visakhapatnam, Andhra Pradesh. TheCompany is primarily involved in the manufactureof steel and related products.

2. Significant accounting policies

2.1 Basis of Preparation

The financial statements have been prepared inaccordance with Indian Accounting Standards (“IndAS”) and provisions of Companies Act, 2013i.e.Section 133 of the Companies Act,2013 asprescribed/notified and amended from time to timeunder the historical cost convention on accrual basisexcept for certain material financial instrumentswhich are measured at fair value.

2.2 Functional and Presentation CurrencyThe standalone financial statements are presentedin Indian rupees, which is the functional currencyof the Company and the currency of the primaryeconomic environment in which the entity operates.All financial information presented in Indian rupeeshas been rounded to the nearest two decimals ofCrore except share and per share data.

2.3 Use of Estimates and JudgmentThe preparation of financial statements requireestimates and assumptions to be made that affectthe reported amounts of assets and liabilities anddisclosure of contingent liabilities on the date offinancial statements and the reported amounts ofrevenues and expenses during the reporting period.Actual results could differ from these estimates anddifferences between actual results and estimatesare recognized in the periods in which the resultsare known/ materialized.

2.4 Inventories

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

2.4.2 The basis of determining cost is:

a) Finished / Semi-finished goods, Rawmaterials – Periodic Weighted Averagecost.

b) Minor Raw materials, Stores and spares(which do not meet PPE definition), Loosetools - Dynamic Moving Weighted Averagecost.

c) All Materials in- transit at cost.

2.4.3 Necessary provisions are made for obsolete

/ Surplus / Non-moving inventory.

2.5 Property, Plant and Equipment (PPE)

2.5.1 (a) The company has adopted the previousGAAP value as the ‘deemed cost’ inpreparing its opening balance sheet as on01 April 2015.

(b) Property, plant and equipment are measuredat cost less accumulated depreciation andimpairment losses.

2.5.2 The cost of property, plant and equipmentcomprises:

(i) Its purchase price;

(ii) Any cost directly attributable to bringing the assetto the location and condition necessary for it to becapable of operating in the manner intended bymanagement;

(iii) The initial estimate of the costs of dismantling andremoving the item and restoring the site on which itis located, the obligation for which the companyincurs either at the time of acquisition of asset oras a consequence of having used the asset duringa particular period for purposes other than to produceinventory during that period;

(iv) Expenditure attributable /relating to constructionto the extent directly identifiable to any specific plantunit, Trial run expenditure net of revenue.2.5.3 The cost of replacing a part of an item ofPPE is recognized in the carrying amount of theitem of property, plant and equipment if therecognition criteria are met. Consequently, thecarrying amount of the replaced part isderecognized.

2.5.4 Expenditure attributable /relating to construction tothe extent not directly identifiable to any specificPlant Unit is kept under ‘Expenditure DuringConstruction’ for allocation to PPE and is groupedunder ‘Capital Work-in- Progress’.

2.5.5 All major spares, stand-by equipment, and servicingequipment that meet the criteria of property, plantand equipment are capitalized.

2.5.6 Depreciation:Depreciation is recognized on straight-line basis overthe estimated useful life of each part of an item ofproperty, plant and equipment. Depreciationmethods, useful lives and residual values arereviewed at each reporting date and whereexpectations differ from previous estimates, thechanges are accounted for as change in accountingestimate.

NOTES TO STANDALONE FINANCIAL STATEMENTS AS AT 31st MARCH 2019

89

2.6 Intangible Assets

2.6.1 Intangible assets are estimated at cost lessaccumulated amortization and impairment.Intangible assets are amortized on straightline method over their estimated useful life.

2.6.2 Residual values and useful lives of allintangible assets are reviewed at eachreporting date. Changes, if any, areaccounted for as changes in accountingestimates.

2.7 Exploration and Evaluation Assets (E&E Assets)

2.7.1 Exploration and evaluation expenditurecomprises costs incurred after obtaining legalright to explore the area and beforeestablishing technical feasibility andcommercial viability of extracting a mineralresource that are directly attributable to:– researching and analyzing existingexploration data;– conducting geological studies, exploratorydrilling and sampling;– examining and testing extraction andtreatment methods; and/or– compiling pre-feasibility and feasibilitystudies.

2.7.2 Exploration and evaluation expenditure isrecognized as an expense, unless theexpenditure is expected to be recoupedthrough successful development andexploitation of the area of interest, oralternatively by its sale, in which case it isrecognized as an asset.

2.7.3 Exploration and evaluation assets areclassified as tangible (as part of property,plant and equipment) or intangible accordingto the nature of the assets. These assetsare not depreciated till they are recognizedas an E &E asset. These assets continue inCWIP and are depreciated once they arerecognized as E&E assets.

2.7.4 The carrying values of capitalized evaluationexpenditure are reviewed for impairment oncea year by management.

2.8 Investment in Subsidiaries and Joint VenturesInvestments in subsidiaries and joint ventures aremeasured at cost. Diminution in value, other thantemporary, is provided for.

2.9 Financial Instruments (Financial Assets andFinancial Liabilities):All financial instruments are recognized initially atfair value. The classification of financial instrumentsdepends on the objective of the business model for

which it is held. For the purpose of subsequentmeasurement, financial instruments of theCompany are classified into (a) Non-DerivativeFinancial Instruments and (b) Derivative FinancialInstruments.

a) Non Derivative Financial Instruments

(i) Security deposits, cash and cash equivalents,employee and other advances, tradereceivables and eligible current and non-current financial assets are classified asFinancial assets under this clause.

(ii) Loans and borrowings, trade and otherpayables including deposits collected fromvarious parties and eligible current and non-current financial liabilities are classified asfinancial liabilities under this clause.

(iii) Financial instruments are subsequently carriedat amortized cost wherever applicable usingeffective interest method (EIR) lessimpairment loss.

(iv) Transaction costs that are attributable to thefinancial instruments recognized at amortizedcost are included in the fair value of suchinstruments.

(b) Derivative Financial Instruments

(i) Derivative Financial Assets and liabilities areinitially recognized at fair value on the date aderivative contract is entered into and aresubsequently re-measured to their fair valueat each reporting date.

(ii) Changes in the fair value of any derivativeAsset or liability are recognized immediatelyin the Income Statement and are included inother income or expenses.

(iii) Cash flow hedge: Changes in the fair value ofthe derivative hedging instrument designatedas a cash flow hedge are recognized in othercomprehensive income and presented withinequity in the cash flow hedging reserve to theextent that the hedge is effective. To the extentthat the hedge is ineffective, changes in fairvalue are recognized in the statement of profitand loss. If the hedging instrument no longermeets the criteria for hedge accounting,expires or is sold, terminated or exercised, thenhedge accounting is discontinuedprospectively. The cumulative gain or losspreviously recognized in the cash flow hedgingreserve is transferred to the statement of profitand loss upon the occurrence of the relatedforecasted transaction.

90

2.10 Impairment

2.10.1 Financial assets

(i) The company applies Expected Credit Loss(ECL) model for measurement and recognitionof impairment loss on the following financialassets and credit risk exposure:

l Financial assets that are debtinstruments, and are measured atamortized cost wherever applicable e.g.,loans, debt securities, deposits, and bankbalance.

l Trade receivables.

(ii) The company follows ‘simplified approach’ forrecognition of impairment loss allowance ontrade receivables which do not contain asignificant financing component. Theapplication of simplified approach does notrequire the company to track changes in creditrisk. Rather, it recognizes impairment lossallowance based on lifetime ECLs at eachreporting date, right from its initial recognition.

2.10.2 Non-financial assetsThe Company assesses at each reporting datewhether there is any objective evidence thata non-financial asset or a group of non-financial assets is impaired. If any suchindication exists, the Company estimates theamount of impairment loss.

2.11 Stripping Cost:

Stripping cost in the nature of expense incurred forremoving overburden and waste materials isaccounted for as follows:

(a) To the extent that the benefit from the strippingactivity is realized in the form of inventoryproduced, the same is accounted for inaccordance with the principles of Ind AS 2,Inventories.

(b) To the extent the benefit is improved access toore, stripping cost shall be recognized as a non-current asset.

2.12 Income Taxes:

Income tax expense comprises of current anddeferred tax. Income tax expense is recognized inthe statement of profit and loss except to the extentit relates to items directly recognized in equity or inother comprehensive income.

2.13 Revenue Recognition

2.13.1 Revenue is recognized at fair value whensignificant risks and rewards of ownershipand effective control on goods have beentransferred to the buyer. Sales revenue is

measured net of returns, discounts andrebates.

2.13.2 Claims against outside agencies areaccounted for on certainty of realization.

2.13.3 Revenue arising from the rendering ofservice is recognized to the extent theservice is provided and could be estimatedreliably.

2.13.4 Interest income is recognized basing onthe effective interest method.

2.13.5 Dividends, are recognized at the time theright to receive is established.

2.13.6 Export Incentives are recognized oncertainty of realization.

2.14 Employee BenefitsProvisions/Liabilities towards gratuity, post-retirement medical benefits, retirement settlementbenefits, Employees’ Family Benefit Scheme,encashment of leave and long term service awardare made based on the actuarial valuation at thereporting date.

(i) Consequential actuarial gain\loss are charged to Statement of Profit and Loss;

(ii) Actuarial gain/loss relating to Post Retirement Benefits (Defined Benefit Plan) are recognized in other comprehensive income.

2.15 Foreign Currency Transactions

2.15.1 Foreign currency monetary items aredisclosed at the closing rate of the reportingperiod at reporting date. Exchangedifferences arising on settlement/conversion of foreign currency monetaryitems are recognized in the statement ofprofit and loss account.

2.15.2 Non-monetary assets and liabilities arerecognized at the exchange rate prevailingat the date of transaction.

2.16 Borrowing Costs

2.16.1 Borrowing costs incurred for obtainingqualifying assets are capitalized to therespective assets wherever the costs aredirectly attributable to such assets and inother cases by applying weighted averagecost of borrowings to the expenditure onsuch assets.

2.16.2 Transaction costs in respect of long-termborrowings are amortized over the tenor ofrespective loans using effective interestmethod.

2.16.3 Other borrowing costs are treated asexpense for the year.

91

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B. Land held under finance leases

The Company has acquired land at Mumbai under finance lease agreements. The leased land secures related lease obligations.The gross and net carrying amounts of land acquired under finance leases and included in above are as follows:

Particulars 31st March 2019 31st March 2018

Cost or deemed cost 1.65 1.65

Accumulated depreciation (0.86) (0.83)

Net carrying amount 0.79 0.82

C. Freehold land

- Land includes 363.28 acres (31st March 2018 363.28 acres) allotted to various agencies on lease basis.

- Land at a cost of 39.99 crore (31st March 2018 : 39.99 crore) is being held in the name of President of India.The Company is holding Power of Attorney issued by Government of India for utilisation of the land acquiredfor the project and related purposes incidental thereto.

- Land includes 14.5 acres whose title is under dispute.

- Land measuring 62.05 acres (Private Land : Makavaram: 19.78, Maturu: 20.45 and Rebaka: 6 and State Land;Makavaram: 13.86, Maturu: 1.96) acquired for RINL is not free from encumbrance and physical possession isyet to be taken.

D. Sale deed in respect of the following land has not yet been executed ( in crores)

Particulars 31st March 2019 31st March 2018

Stockyard at Chennai 2.37 2.37

Office building at New Delhi 25.53 25.53

Office buildings at Ahmedabad 0.18 0.18

Residential buildings at Kolkata 0.95 0.95

Site for Liaison Office at Hyderabad 1.30 1.30

30.33 30.33

E. Depreciation methods and useful lives

"Depreciation is recognized in profit or loss on a straight-line basis over the estimated useful lives of each part of anitem of property, plant and equipment. The estimated useful lives for the current and comparative periods are asfollows:

Particulars 31st March 2019 31st March 2018

Railway lines and sidings 10-15 years 10-15 years

Roads, bridges and culverts 3-30 years 3-30 years

Buildings 5-60 years 5-60 years

Plant and equipment 2-40 years 2-40 years

Fixtures and fittings 10 years 10 years

Vehicles 6-8 years 6-8 years

Electrical installations 10-25 years 10 years

Water supply and sewerage systems 15-30 years 15 years

Miscellaneous assets 3-15 years 3-15 years

( in Crores)

93

Particulars 31st March 2019 31st March 2018

Allocation of depreciation :

Expenditure During Construction/Capital work-in-progress 6.76 38.05

Current year (Profit or loss) 1,048.06 763.36

1,054.82 801.41

Depreciation methods, useful lives and residual values are reviewed at each financial year-end and adjusted if appropriate.

F. Capital work-in-progress ( in Crores)

Particulars 31st March 2019 31st March 2018

Capital work-in-progress 3,874.19 4,948.14

(including material issued to contractors)

Less: Provision for dropped SLTM project & others 20.44 19.84

3,853.75 4,928.30

Expenditure during construction awaiting allocation (Note G) - 296.36

Total 3,853.75 5,224.66

G. Expenditure during construction awaiting allocation

Particulars 31st March 2019 31st March 2018

Opening Balance (A) 296.36 442.89

Expenditure during the year:Employee remuneration and benefits (8.85) 64.29

Other expenses and provisions - 28.52

Interest expense - 7.88

Depreciation 5.31 38.05

Less :Other revenue - 0.01

Net expenditure during the year (B) (3.54) 138.73

Total (A+B) 292.82 581.62

Less: Amount allocated to PPE 292.82 285.26

Total - 296.36

( in Crores)

( in Crores)

94

Computersoftware

Mining rights Total (i)Intangible

assets underdevelopment

(ii)

Total(i)+(ii)

Particulars

B. Amortisation methods and useful lives

Amortisation is recognized in profit or loss on a straight-line basis over the estimated useful lives of each part of an item ofintangible assets.

The estimated useful lives for the current and comparative periods are as follows:

Particulars 31st March 2019 31st March 2018

Computer Software 4 years 4 years

Mining Rights 20 years 20 years

4 Intangible assets

A. Reconciliation of carrying amount ( in Crores)

Cost or Deemed Cost(Gross carrying amount)

Balance at 1st April 2017 66.45 5.83 72.28 - 72.28

Additions and adjustments 0.18 - 0.18 - 0.18

Sales and adjustments (0.04) - (0.04) - (0.04)

Balance at 31st March 2018 66.59 5.83 72.42 - 72.42

Balance at 1st April 2018 66.59 5.83 72.42 - 72.42

Additions and adjustments 1.75 - 1.75 - 1.75

Sales and adjustments 0.00 - 0.00 - 0.00

Balance at 31st March 2019 68.34 5.83 74.17 - 74.17

Accumulated AmortisationBalance at 1st April 2017 42.16 4.91 47.07 - 47.07

Amortisation for the year 14.63 0.27 14.90 - 14.90

Sales and adjustments (0.04) - (0.04) - (0.04)

Balance at 31st March 2018 56.75 5.18 61.93 - 61.93

Balance at 1st April 2018 56.75 5.18 61.93 - 61.93

Amortisation for the year 9.25 0.28 9.53 - 9.53

Sales and adjustments 0.00 - 0.00 - 0.00

Balance at 31st March 2019 66.00 5.46 71.46 - 71.46

Carrying amounts (net)At 31st March 2018 / 1st April 2018 9.84 0.65 10.49 - 10.49

At 31st March 2019 2.34 0.37 2.71 - 2.71

Net

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95

5 Investments( in Crores)

Note:- In accordance with Ind AS, the Company has availed the option to measure its investments in subsidiary and jointventures at cost.*Investment in The Bisra Stone Lime Company Limited amounted to 1000, hence rounded off to zero**Investments in Free Press House Limited amounted to 2280, hence rounded off to zero.***Investments in Anakapalli Rural Elec. Co-operative Socity amounted to 100, hence rounded off to zero.# The market value of quoted investment not ascertainable due to non availability of quotes as same are suspended fromtrading in stock exchange.^ Eastern Investments Limited (EIL) is a subsidiary of RINL and RINL holds 51% stake in EIL.Investment in EIL is madewith an intention to have a securitisation of material with long term committment.EIL shares are not traded in the stockexchange and share price is not available.M/s.OMDC is a subsidiary of EIL and EIL holds a little over 50% stake in OMDC.OMDC and BPMEL were served with demand notices of 1482.94 Crore for EC & FC as compensation for excess miningby Dy.Director Mines, Govt of Odisha pursuant to the Judgement of Hon'ble Supreme Court dated 02.8.2017. M/s.OMDCcontested the demand and took up the issue with Govt of Odisha and filed a writ petition in Odisha High Court in 2017-18 asper calculation of OMDC. The Govt of Odisha clearly mentioned that the penalty calculation was done by CEC appointed byHon'ble Supreme Court and hence stood final. OMDC filed to withdraw writ petitions from HC of Odisha and the Writ Petitionstood disposed of by order dated 26.3.2019. The amount of Demand for OMDC Leases is 702.18 Crores and for BPMEL

Particulars 31st March 2019 31st March 2018

A. Non-current investmentsQuoted equity sharesEquity shares at cost- Subsidiary736,638 (31st March 2018: 736,638) equity shares of 10 each in Eastern Investments Limited^ 361.03 361.03

182,927 (31st March 2018: 182,927) equity shares of 10 each in The Bisra Stone Lime Company Limited* - -

Total 361.03 361.03Unquoted equity sharesEquity shares at cost - Associates376,357,143 (31st March 2018 376,357,143) equity shares of 10 each in International Coal Ventures Private Limited 376.35 376.35

Equity shares at cost - Joint ventures110,000 (31st March 2018: 100,000) equity shares of 10 each in Rinmoil Ferro Alloys Private Limited 0.11 0.10

4,000,000 (31st March 2018: 3,400,000) equity shares of 10 each in RINL Powergrid TLT Private Limited! 4.00 3.40

Equity shares at cost- Others2,280 (31st March 2018: 2,280) equity shares of

1 each in Free Press House Limited** 0.00 0.001 (31st March 2018: 1 ) equity shares of 100 each in Anakapalli Rural Elec. Co-operative Society*** 0.00 0.00

Total 380.46 379.85Total investment in equity instruments (A) 741.49 740.88B. Other investmentsAdvance for investment in equity shares ofRINL Powergrid TLT Private Limited - 0.60Total Other investments ( B) - 0.60C. Provision for diminution in value of investments - -Total Investments (A+B-C) 741.49 741.48Aggregate book value of quoted investments 361.03 361.03Aggregate market value of quoted investments # NA NAAggregate value of unquoted investments 380.46 379.85Aggregate amount of impairment in value of investments - -

96

6 Loans(Unsecured and considered good unless otherwise stated) ( in Crores)

Particulars 31st March 2019 31st March 2018

Non-current loans

Loans to employees 46.14 48.52

Loan to Andhra Pradesh Industrial Infrastructure Corporation 96.68 173.77

(APIIC) (including Accrued interest)*142.82 222.29

Loss allowance - -

Total long-term loans 142.82 222.29

Current loansMaterial issued on loan - -

- -

Loss allowance - -

Total short-term loans - -

Interest in subsidiary Name of entity Place of % of ownership Relationship

business interest

Eastern Investments Limited ("EIL") Kolkata, India 51% Subsidiary

The Orissa Minerals Development Company Limited ("OMDC") Kolkata, India 50%* Subsidiary of EIL

The Bisra Stone Lime Company Limited ("BSLC") Kolkata, India 50%* Subsidiary of EIL

*EIL ownership interest

Interest in associates and joint ventures

Place of % of ownership Accounting Name of entity business interest Relationship method under

consolidation

International Coal Ventures Private Limited New Delhi, India 26% Associate Equity method

RINMOIL Ferro Alloys Private Limited Visakhapatnam, India 50% Joint Venture Equity method

RINL Powergrid TLT Private Limited Visakhapatnam, India 50% Joint Venture Equity method

Lease is 861.57 Crore, totalling 1563.75 Crore as on 31.3.2019 including interest.” “As the Mining Rights of BPMELLeases are subjudice, the consequence of legal outcome is not known as on 31.03.2019. OMDC has paid the compensationof 552.67 Crore towards OMDC Leases and created Provision for balance Payment including interest upto 31.03.2019 of 309.88 Crores in the standalone books of accounts of OMDC. OMDC has paid a sum of 27.15 Crore towards BPMEL

Leases which has been treated as advance and remaining amount of compensation including interest up to 31.03.2019against BPMEL Leases amounting 1067.98 Crore are shown under Contingent Liabilities in the books of OMDC.Further as the market value of the investment of EIL in M/s. OMDC is higher than that of its net assets value, no provisiontowards impairment has been made in the financial statements of EIL towards its investment in M/s. OMDC.RINL is of theview there are no circumstances which contribute to permanent decline in the value of investment in EIL. Hence, there isno impairment of investment of RINL in EIL.! Subsequent to the decision of Board of M/s Power Grid Corporation Ltd for the closure of Joint venture-RINL Power gridTLT Private Ltd, Board of RINL in the meeting on 08.03.19 also decided for winding up of above JV and proposal sent(13.05.2019) for approval of Ministry of Steel. Pending approval of MOS and assessment of the recoverable amount of theasset, impairment of investment is not currently recognised.

97

8 Income tax

A. Reconciliation of effective tax rate ( in Crores)

Particulars 31st March 2019 31st March 2018

Profit before tax (306.89) (1,911.45)Tax using the Company’s domestic tax rate (95.75) (596.37)(Current year 31.2% and Previous Year 31.2%)Tax effect of:Non-deductible tax expenses 3.34 12.29Income not credited to SOPL 13.55 9.11Scientific research deduction (0.03) (0.09)Income exempt/Expenses deductible from income taxes 5.51 (78.18)Recognition/Derecognition of Tax losses (350.69) 135.90Others 20.47 (25.10)

(403.60) (542.44)

98

7 Other financial assets ( in Crores)

Particulars 31st March 2019 31st March 2018

Security deposits 1.06 1.13Accrued interest- Employee loans 22.99 22.00Other advances 0.09 0.15Total non-current other financial assets 24.14 23.28Current maturities of long term loans:- Employee loans 20.84 22.13- Loan to APIIC - 31.18Accrued interest- Employee loans 2.51 2.26- Others 30.90 19.17Security deposits 331.51 301.39Advances to related parties- Rinmoil Ferro Alloys Private Limited* 1.21 1.21Claims recoverable 192.52 143.15Less: Provision for doubtful claims 52.53 139.99 51.60 91.55Other receivables 2.21 2.40Total current other financial assets 529.17 471.29(i) Advances due by Directors/other officers - -(ii) *Advances due by private companies in which director of the Company is a director 1.21 1.21

*Loan to APIIC has been rescheduled considering the prepayments made during the year.Accordingly ,the loan has beenfair valued during the year.

(i) Particulars of Loans Receivables Secured and considered good 0.00 0.00

Unsecured and considered good 142.82 222.29 which have significant increase in credit risk 0.00 0.00 credit impaired 0.00 0.00(ii) Loans due by Directors/other officers Nil Nil(iii) Loans due by private companies in which director of the Company is a director Nil Nil

The loss allowance on loans has been computed on the basis of Ind AS 109, Financial Instruments, which requires suchallowance to be made even for loans considered good on the basis that credit risk exists even though it may be very low.

B. Recognised deferred tax assets and liabilities ( in Crores)

Particulars 31st March 2019 31st March 2018

Deferred tax liabilitiesExcess of depreciation/ amortisation on fixed assets under

income-tax law over depreciation/ amortisation provided in 2,688.64 2,158.46

books of account

Total deferred tax liabilities (A) 2,688.64 2,158.46Deferred tax assetsProvision for Gratuity 173.35 170.31

Provision for Doubtful Debts, Advances, Claims, interest, others 26.41 26.25

MAT Credit Entitlement 242.41 242.41

Losses available for offsetting future Taxable income 3,403.94 2,446.21

Others 16.06 51.42

Total deferred tax assets (B) 3,862.17 2,936.60Net Deferred Tax Liability/ (Asset) (A-B) (1,173.53) (778.14)

9 Other non-current assets ( in Crores)

Particulars 31st March 2019 31st March 2018

Capital advances 60.24 72.15

OthersPrepaid expensesLoan to APIIC 23.32 38.91

Employee loan 1.75 8.28

Total 85.31 119.34

(i) Advances due by Directors/other officers - -

(ii) Advances due by private companies in which director - -

of the Company is a director

10 Inventories : (As taken and certified by the management) ( in Crores)

Particulars 31st March 2019 31st March 2018

Raw materials 2,377.92 1,559.13Add: In-transit/ Under inspection 1,174.57 1,093.33

Less: Provision for shortages 573.93 512.652,978.56 2,139.81

Semi-finished/finished goods 3,286.81 2,354.16Add: In-transit/ Under inspection 82.40 56.61

3,369.21 2,410.77Stores and spares 1,086.34 1,052.16

Add: In-transit/ Under inspection 100.23 65.71Less: Provision for obsolescence & Non-moving items 45.23 39.78

1,141.34 1,078.09Total 7,489.11 5,628.67

99

Note: Valuation of inventories (Valued as per Accounting Policy 2.4)

(i) Quantities of closing Stock of finished / semi-finished goods/Raw materials have been adopted as per bookbalances after duly adjusting for shortages/ excesses identified on physical verification at anytime duringthe year.

(ii) No credit is taken in the accounts for the stock of run of mines ore and rejects at Mines.

(iii) Coke Breeze is valued at 60% of the production cost of BF coke and Nut Coke cost is valued at 90% ofProduction cost of BF Coke

(iv) Coke and other by products are valued at net realisable value, wherever cost is not determinable and atcost, where net realisable value is not available, except in the case of Stock of BF Granulated slag at dumpyard (Quantity of 3262010 tonnes) for which no value is assigned other than dump slag identified forsale(Quantity of 2308000 tonnes).

(v) The stock of production related iron scrap and steel scrap has been considered in the accounts on the basisof visual survey / estimates and are valued at 75 % and 90 % respectively, at lower of the cost of Pig Ironand of the domestic net realisable value of Pig Iron.

11 Trade receivables ( in Crores)

Particulars 31st March 2019 31st March 2018

Unsecured, considered good 1,130.38 995.98Doubtful 26.04 20.83

1,156.42 1,016.81Less: Loss allowanceDoubtful 26.04 20.83Total 1,130.38 995.98

Note :

(i) Debts due by Directors/other officers - -

(ii) Debts due by private companies in which director of the Company is a director - -

(iii) The Company's exposure to credit and currency risks, and loss allowances related to trade receivables aredisclosed in Note 38.

12 Cash and cash equivalents ( in Crores)

Particulars 31st March 2019 31st March 2018

Cheques in hand 77.96 34.58

Cash on hand 0.04 0.02

Balance with banks :

- Current account 31.16 4.66

- Deposit accounts 4.39 4.12

- Prime Minister's Trophy Award Fund 7.88 8.52

Total 121.43 51.90

100

13 Other tax assets (net) ( in Crores)

Particulars 31st March 2019 31st March 2018

Advance income tax - 0.01

[net of provision for tax of NIL crores]

(31st March 2018: Nil crores)

Total - 0.01

14 Other current assets ( in Crores)

Particulars 31st March 2019 31st March 2018

Advances to related parties- Bisra Stone Lime Company Limited 41.14 29.45- Orissa Mineral Development Corporation - 0.02Advances other than capital advances- Government departments 996.7 460.51Less: GST Recoverable Pending Adjustment 430.89 565.81 0.00 460.51- Contractors 10.89 11.73Less: Provision for doubtful advances 0.20 10.69 0.29 11.44- Suppliers 116.10 65.55Less: Provision for doubtful advances 4.12 111.98 4.61 60.94- Employees 19.85 17.96Less: Provision for doubtful advances 0.01 19.84 0.04 17.92- Others 79.61 16.06Less: Provision for doubtful advances 7.36 72.25 7.53 8.53Others- Prepaid expenses 'Employee loan 5.25 4.65 'Loan to APIIC - 4.20 'Others 13.25 9.97- Assets held for sale (net of provision for loss) 0.12 0.12- Export benefits receivable 53.50 76.78Total 893.83 684.53

(i) Advances due by Directors/ officers - -(ii) Advances due by private companies in which director - -

of the Company is a director

15 Share capital ( in Crores)

Particulars 31st March 2019 31st March 2018

Authorised4,890,000,000 (31st March 2018: 4,890,000,000)equity shares of 10 each 4,890.00 4,890.003,110,000,000 (31st March 2018: 3,110,000,000) 7%non-cumulative redeemable preference shares of 10 each 3,110.00 3,110.00

8,000.00 8,000.00Issued, subscribed and paid-up capital4,889,846,200 (31st March 2018: 4,889,846,200)Equity Shares of 10 each. 4,889.85 4,889.85Total 4,889.85 4,889.85

101

Terms and rights attached to equity shares

The Company has only one class of shares referred to as equity shares having a par value of 10 each. Eachholder of the equity share, as reflected in the records of the Company as of the date of the shareholder meeting,is entitled to one vote in respect of each share held for all matters submitted to vote in the shareholder meeting.The Company declares and pays dividends in Indian rupees. The Company may declare dividend in the AnnualGeneral Meeting as recommended by the Board of Directors.

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive any of theremaining assets of the Company after distribution of all preferential amounts. The distribution will be in proportionto the number of equity shares held by the shareholders.

(iii) Company does not have any holding company as at 31st March 2019/ 31st March 2018(iv) For the period of five years immediately preceeding the reporting date - • The Company has not allotted any shares for consideration other than for cash. • The Company has neither issued bonus shares nor has bought back any shares .

16 Other equity ( in Crores)

Particulars 31st March 2019 31st March 2018

Reserves and surplusRetained earningsBalance at the commencement of the year (606.36) 742.34

Add: Surplus as per Statement of Profit and Loss 96.71 (1,369.01)

Add: Other comprehensive income (net of tax) 34.61 20.31

Balance at the end of the period (475.04) (606.36)Other reservesCapital Redemption ReserveBalance at the commencement of the year 2,937.47 2,937.47

Movement during the period - -

Balance at the end of the period 2,937.47 2,937.47Total reserves and surplus 2,462.43 2,331.11Total other equity 2,462.43 2,331.11

(i) Reconciliation of the number of equity shares outstanding at the beginning and at the end of thereporting period:

Particulars 31st March 2019 31st March 2018

No. of shares Amount ) No. of shares Amount ( in crores) ( in crores)

Shares outstanding at the beginning of the year 4,889,846,200 4,889.85 4,889,846,200 4,889.85

Shares issued during the year - - - -

Shares outstanding at the end of the year 4,889,846,200 4,889.85 4,889,846,200 4,889.85

102

(ii) Particulars of shareholders holding more than 5% of total number of equity shares

Particulars 31st March 2019 31st March 2018

No. of shares % of No. of shares % of Holding Holding

Equity shares of 10 each, fully paid up heldPresident of India 4,889,846,200 100% 4,889,846,200 100%

A. Terms of repayment and Nature of Security of Term Loans

l Indian rupee loan amounting to 900.00 crore from SBI secured by primary security as pari passu first charge on currentassets of the company and collateral security as pari passu first charge on movable plant and machinery and all othermovable assets except current assets of the company . The loan is repayable in structured consecutive quarterlyinstalments started from first quarter of FY 2017-18 and the last instalment is due on 31st March 2022.

l Indian rupee loan amounting to 450.00 crore from SBI secured by primary security as pari passu first charge on currentassets of the company and collateral security as pari passu first charge on fixed assets of the company . The loan isrepayable in structured consecutive quarterly instalments started from first quarter of FY 2019-20 and the last instalmentis due on 31st March 2023.

l Indian rupee loan amounting to 3657.00 crore from SBI secured by pari passu first charge on movable plant andmachinery and all other movable assets except current assets of the company. The loan is repayable in structuredconsecutive quarterly instalments started from last quarter of FY 2016-17 and the last instalment is due on 31st March 2031.

l Indian rupee loan amounting to 1400.07 crore from SBI secured by pari passu first charge on movable plant andmachinery and all other movable assets except current assets of the company. The loan is repayable in structuredconsecutive quarterly instalments starting from first quarter of FY 2018-19 and the last instalment is due on 31st March 2031.

l Indian rupee loan amounting to 1000.00 crore from Canara Bank secured by hypothecation of movable fixed assetsincluding Plant& machinery created out of proceeds of the term loan. The loan is repayable in structured consecutivequarterly instalments starting from 30th Sep 2022 and the last instalment is due in 30th June 2027.

l Indian rupee loan amounting to 200.00 crore from Vijaya Bank secured as pari passu first charge on hypothecation ofmovable fixed assets . The loan is repayable in structured consecutive quarterly instalments starting from 30th June2022 and the last instalement is due on 31st March 2027.

l Indian rupee loan amounting to 500.00 crore from IDBI secured by primary security as pari passu first charge bymortgage in favour of IDBI, of all moveable fixed assets and immovable assets excluding Project land at Forged WheelPlant, Lalganj, Uttar Pradesh both present and future. Collateral security as pari passu first charge on Plant and Machineryof Company's Visakhapatnam Plant to the extent of loan amount.The loan is repayable in structured consecutive quarterlyinstalments starting from 28th March,2022 and the last instalement is due on 28th December 2029.

l Indian rupee loan amounting to 850.42 crore from Canara Bank secured by primary security as pari passu first chargeon moveable fixed assets of the company both present and future including plant and machineries to be purchased outof term loan.The loan is repayable in structured consecutive quarterly instalments starting from 21st December 2023and the last instalement is due on 21st September 2028.

17 Borrowings ( in Crores)

Particulars 31st March 2019 31st March 2018

Non-current borrowingsTerm loan from banks -Secured bank loans 9,309.26 6,545.16-Unsecured bank loans - -Current maturities of term loans 561.30 909.05

9,870.56 7,454.21Less: Amount included in other financial liabilities-Current 561.30 909.05Total non-current borrowings 9,309.26 6,545.16Current borrowingsLoans from Banks-Secured working capital borrowings(by hypothecation of current assets) 5,105.07 3,181.06-Unsecured working capital borrowings 2,630.22 1,880.88-Unsecured foreign currency facilities - 2,178.31Commercial papers (Unsecured) 1,985.73 1,981.02Total current borrowings 9,721.02 9,221.27Information about the Company's exposure to interest rate, foreign currency and liquidity risks is includedin Note 38.

103

ParticularsFor the yearended 31st

March 2018

Cash Flows:Inflow/

(outflow)Non-Cash Changes

For the yearended 31st

March 2019Foreign Fair Value

Exchange ChangeMovement

Long-Term Borrowings 7454.21 2416.35 0 - 9870.56(including Current Maturities)

Short Term Borrowings 9221.27 526.14 (26.39) - 9721.02

18 Other financial liabilities ( in Crores)

Particulars 31st March 2019 31st March 2018

Non-current other financial liabilitiesSecurity deposits 96.38 25.90Other liabilities - -Total non-current other financial liabilities 96.38 25.90Current other financial liabilitiesCurrent maturities of long-term debt: - Term loans 561.30 909.05Interest accrued but not due on borrowings 7.38 25.83Earnest money, security & other deposits 349.64 265.11Capital creditors 74.17 171.18Other financial liabilities* 3,710.20 3,881.97Total current other financial liabilities 4,702.69 5,253.14

* Other financial liabilities includes 472.49 Crore (Previous year 678.08 Crore-pension & wage revision)provision on account of pay revision(pension) in respect of Executive employees and Non-Executiveemployees .

The Company's exposure to currency and liquidity risks related to financial liabilities is disclosed in Note 38.

( in Crores)

l Indian rupee loan amounting to 500.00 crore from Union Bank of India secured as pari passu first charge byhypothecation on all existing/ future machinery/ plant/ vehicle/ capital goods/ assets/ craft and all those assets/ movableproperties and/ or capable of passing by delivery whether installed or not and whether now lying loose or in cases andnow being or at any time brought into or upon or at any time in course of transit to the premises/ factory of the borrowerat Visakhapatnam Steel Plant, Visakhapatnam and their other plants/ branches.The loan is repayable in structuredconsecutive quarterly instalments starting from 31st December 2020 and the last instalement is due on 30th September2025.

l Indian rupee loan amounting to 160.59 crore from Vijaya Bank secured as pari passu first charge by hypothecation ofmoveable fixed assets of the company. The loan is repayable in structured consecutive quarterly instalments startingfrom 31st August 2023 and the last instalement is due on 31st May 2028.

l Indian rupee loan amounting to 252.47 crore from SBI secured by primary security as pari passu first charge overentire movable, immovable and intangible assets excluding project land of FWP, Lalganj, UP both present & future.Collateral security as pari passu first charge over entire movable, immovable and intangible assets of company'sVisakhapatnam plant to the extent of 133% of loan amount at all times both present & future. The loan is repayable instructured consecutive quarterly instalments starting from 31st March 2022 and the last instalment is due on31st December 2029.

B. Loans guaranteed by Directors and others Nil Nil

C. Default in repayment of loans and interest Nil Nil

D.Reconciliation of liabilities arising from financing activities

104

Movement in other provision ( in Crores)

Particulars Mine closure obligation

Balance at 1st April 2017 3.48

Provisions made during the year 0.13

Balance at 31st March 2018 3.61

Balance at 1st April 2018 3.61

Provisions made during the year 0.18

Balance at 31st March 2019 3.79

Mine closure obligation

A provision for mine closure obligation is recognised considering the future obigation on the company forthe restoration of mines.

Name of the Mine Lease expiry

Jaggayyapeta 8-Aug-2020

Madharam 13-Jul-2020

Garbham 7-Oct-2022

19 Provisions ( in Crores)

Particulars 31st March 2019 31st March 2018

Non-current provisionsProvision for employee benefitsLiability for compensated absences 311.55 311.15

Liability for retirement benefits 515.20 455.02

Liability for employee family benefit scheme 168.12 189.62

Liability for service awards 40.95 41.55

Liability for leave travel concession 12.86 12.02

Total provisions for employee benefits (A) 1,048.68 1,009.36

Other provisionProvision for mines closure obligation 3.79 3.61

Total other provision (B) 3.79 3.61

Total non-current provisions (A+B) 1,052.47 1,012.97

Current provisionsProvision for employee benefitsLiability for gratuity 555.62 545.87

Liability for compensated absences 19.47 27.86

Liability for retirement benefits 13.47 42.15

Liability for employee family benefit scheme 40.12 35.83

Liability for service awards 3.32 2.77

Liability for leave travel concession 7.31 13.84

Total provisions for employee benefits (A) 639.31 668.32

Total current provisions 639.31 668.32

105

20 Other non current liabilities ( in Crores)

Particulars 31st March 2019 31st March 2018

OthersDeferred income-GrantsTrophy Fund 8.12 8.52

EPCG - 69.04

PPE 5.58 13.70 4.83 82.39

Total 13.70 82.39Deferred income1. The grant relating to Trophy fund represents the unspent amount received on account of Prime Minister Trophy , Steel Minister

Trophy and Steel Minister Development fund including interest earned.The same has to be spent for specific purposes andwill be amortised over the period in which the cost incurred shall be recognised . Wherever the Trophy Fund deposit is utilisedfor construction of any asset,the transfer from the Trophy Fund is effected only on capitalisation of said assets.

21 Trade payables ( in Crores)

Particulars 31st March 2019 31st March 2018

Trade payables- Micro Enterprises and Small Enterprises 109.63 74.67

- Other than Micro Enterprises and Small Enterprises 1,551.99 1,122.90

Total 1,661.62 1,197.57

All trade payables are 'current'.The Company's exposure to currency and liquidity risks related to trade payables is disclosed in Note 38Note : Information relating to 'Supplier' under the provisions of Micro, Small and Medium EnterpriseDevelopment Act, 2006

Particulars 31st March 2019 31st March 2018

(i) The amounts due thereon remaining unpaid to anysupplier as at the end of the year- Principal Nil Nil- Interest Nil Nil

(ii) Payments made beyond the appointed day andinterest thereon during the year Nil Nil

(iii) The amount of interest due and payable for the period ofdelay in making payments but without adding the interestspecified in the act. Nil Nil

(iv) The amount of interest accrued and remaining unpaid atthe end of the year Nil Nil

(v) The amount of further interest remaining due and payable inthe succeeding year until the date such interest is actually paid Nil Nil

PM Trophy Fund and PM Trophy Fund Deposit changes during the year 18-19:

Note:12 Note:20 Particulars Deposit Trophy Fund Included note ref Opening balance 8.52 8.52 Add:Interest during the year 0.60 0.60 Less:Utilisation (a) Providing Acs in CWC-I for employee welfare -capitalised 1.00 1.00 3.A (Additions to PPE)

(b)Wellness Centre for employee welfare - CWIP 0.24 0.00 3.F (CWIP) Closing Balance 7.88 8.122. The grants relating to PPE represents unamortised Subsidy received from Government towards establishment of

5MW Solar Power Plant and unamortised value of PPE acquired out of Trophy fund.This amount will be amortisedover the useful life of the relevant asset.

106

23 Other current liabilities ( in Crores)

Particulars 31st March 2019 31st March 2018

Income Received in advance 1.71 1.92

Advances from customers 300.92 215.39

Statutory Liabilities 349.91 278.60

Other advances 0.04 0.01

Total 652.58 495.92

24 Revenue from operations ( in Crores) Particulars For the year ended

31st March 2019 31st March 2018

A. Sale of products (including excise duty**)Domestic sales 19,539.34 14,893.39Less: Sale of trial run production (transferred to CWIP)* 506.32 2,127.62

19,033.02 12,765.77

Export sales 1,305.04 1,725.01

Less: Sale of trial run production (transferred to CWIP) - 31.11

1,305.04 1,693.90

Total Sale of Products (A) 20,338.06 14,459.67

B. Other operating revenues

Internal consumption 19.03 31.50

Export benefits 113.07 84.10

Others 21.87 31.91

Total other operating revenues (B) 153.97 147.51

Total revenue from operations (A+B) 20,492.03 14,607.18

*includes Excise Duty of 31.25 Crore in Previous Year:

**Revenue from operations for the periods up to 30th June, 2017 includes excise duty, which is discontinued

effective 1st July, 2017 upon implementation of Goods and Service Tax (GST). In accordance with Ind

AS-115 Revenue Standard (PY:INDAS -18) , GST is not included in Revenue from Operations. In view of

the aforesaid change, Revenue from Operations for the period ended on 31st March, 2019 is not

comparable with the previous periods.

107

22 Derivatives - Liabilities ( in Crores)

Particulars 31st March 2019 31st March 2018

Foreign exchange contracts - 0.60

Total - 0.60

A. Stock and sales

31st March 2019 Opening stock Sales Closing stock

Particulars Quantity Value Quantity Value Quantity Value (in Tonnes) ( in Cr) (in Tonnes) ( in Cr) (in Tonnes) ( in Cr)

Pig iron 9,458 25.50 93,214 255.91 31,211 90.36

Blooms 210,578 621.42 721,778 2,370.33 206,046 695.51

Billets 11,285 34.47 21,501 81.85 15,563 52.81

Finished products 144,199 516.14 4,038,246 16,805.04 277,000 1,066.30

Sundries*

- Coke and coke products 427,073 699.28 129,053 177.41 349,482 611.31

- Others 2,135,642 513.97 2,952,101 647.51 3,827,174 852.91

Total 2,410.77 20,338.06 3,369.21

31st March 2018

Opening stock Sales Closing stock Particulars Quantity Value Quantity Value Quantity Value

(in Tonnes) ( in Cr) (in Tonnes) ( in Cr) (in Tonnes) ( in Cr)

Pig iron 6,310 15.73 99,930 237.16 9,458 25.50Blooms 138,018 405.93 552,888 1,686.81 210,578 621.42Billets 7,924 24.75 16,944 54.49 11,285 34.47Finished products 142,215 479.77 3,300,606 11,895.29 144,199 516.14Sundries* - Coke and coke products 618,790 906.88 143,203 198.30 427,073 699.28 - Others 1,662,748 510.88 2,592,990 387.62 2,135,642 513.97

Total 2,343.94 14,459.67 2,410.77

(*) Quantity for Argon Gas, Oxygen Gas and Nitrogen Gas is in Thcum.Sub Note: (i) Closing stock includes stock in custody of Consignment/ Handling Agents & GIT which is 20642.66 tonnes of value 82.40 Crore (Previous year 19146.44 tonnes of value 70.75 Crore).(ii) Figures of closing stock are after adjustment for internal consumption, transfers to capital works, shortages / excesses.(iii) Others include By-products, Aux Shop, Iron & Steel Scrap, Defectives, Hot Metal, Sized Iron Ore, Gross Sinter & Base Mix.

108

25 Other income ( in Crores)

Particulars For the year ended

31st March 2019 31st March 2018

Interest income :Banks 0.30 0.17Loans to employees 9.81 8.13Others * 78.50 70.90Dividend income on equity instruments 0.04 0.09Rent recoveries 35.01 32.12Liquidated damages 75.54 110.84Net gain on sale of property, plant and equipment 0.99 0.42Write back of provisions no longer required 1.42 4.68Sundry receipts ** 145.07 37.89

Total 346.68 265.24Note:(a) * includes an amount of 13.12 crore of accrued interest upto 31.03.2019 accounted based on relief given by CIT(A)-9

Hyderabad vide common order dt.30.04.2019 for AY 2012-13 to AY 2014-15 in line with IND AS-10.(b )** includes an amount of : (i) 54.75 Crore refund received from M/s. NMDC during the year towards DMF (District

Mineral Fund) for the period 12.01.2015 to 16.09.2015 (ii) 1.74 Crore rebate received from Indian Railways during theyear towards fulfillment of Gross Freight Revenue(GFR) and volume discount pertaining to the year 2017-18.(iii) 26.38Crore of GST Compensation Cess refund claimed during the year for the FY 2017-18 as per circular no.79/53/2018-GST dated 31.12.2018

(c) **As against our revised claim of 319.71 Crore towards damages caused by Hudhud cyclone, an amount of 171.91Crore being the amount recommended by surveyor and under consideration by insurance company has been accountedtill FY 2018-19(upto previous year 140.25 Crore has been accounted on account payment) .The expenditure onaccount of damages caused by 'Hudhud cyclone is accounted under several primary heads of accounts as it is difficultto reliably identify the said expenditure for its separate disclosure.

26 Cost of material consumed ( in Crores)

Particulars For the year ended31st March 2019 31st March 2018

Raw materialsCoal 7,513.52 6,112.90Coke and Coke breeze 530.30 75.84Iron ore 4,539.45 3,378.98Limestone 232.55 193.07Dolomite 145.90 143.09Silico manganese 622.73 488.51Ferro silicon 111.10 74.57Aluminium 145.04 112.43Manganese ore 3.86 3.40Petroleum coke 53.25 28.39Sea Water magnesite 11.25 16.15Others 66.64 44.96Total 13,975.58 10,672.29Add: Output from trial run production 14.48 216.75Less: Material Consumed for trial run production 193.97 2,222.66Less: Inter account adjustments - raw material mining cost 65.84 65.33Total 13,730.25 8,601.05

109

27 Changes in inventory of finished goods and work-in-progress ( in Crores)

Particulars For the year ended

31st March 2019 31st March 2018

Opening stock 2,410.77 2,343.94Less: Closing stock 3,369.21 2,410.77

(958.44) (66.83)Less: Excise duty on accretion / depletion to stock 0.00 119.51 (including IGST Credit)Total (958.44) (186.34)

Note :( in Crores)

Particulars For the year ended

31st March 2019 31st March 2018

Cost of inventories valued at net realisable value 447.31 203.88Inventories valued at net realisable value 446.96 198.53Write down of inventories charged as expense 0.35 5.35

28 Employee benefits expense ( in Crores)

Particulars For the year ended

31st March 2019 31st March 2018

Salaries and wages 2,042.88 2,020.68Contribution to provident fund and other funds 245.67 166.90Staff welfare expenses 149.73 156.02Total 2,438.28 2,343.60

Note :

(i) Expenditure on Employee benefits not included above and charged to: ( in Crores)

Particulars For the year ended

31st March 2019 31st March 2018

Capital Work in Progress / Expenditure DuringConstruction Salaries and wages (0.36) 90.21Company’s contribution - provident fund & other funds 1.03 26.64Staff Welfare expenses 0.56 6.12Total 1.23 122.97

29 Finance costs ( in Crores)

Particulars For the year ended

31st March 2019 31st March 2018Interest expense on financial liabilities :Foreign currency facilities 39.03 81.23Bank loans and commercial papers 1,236.02 848.12Others 1.25 5.09Other borrowing costs 1.31 3.89Total 1,277.61 938.33

110

Note: (i) Expenditure on finance cost not included above and charged to: ( in Crores)

Particulars 31st March 2019 31st March 2018

Capital Work in Progress / Expenditure DuringConstructionInterest - Banks 216.87 219.98Total 216.87 219.98

(ii) In case of general borrowings , the weighted average rate of borrowing cost for the year 2018-19 is 9.23%( FY 2017-18 : 9.30%)

30 Depreciation and amortisation expense ( in Crores)

Particulars For the year ended

31st March 2019 31st March 2018Depreciation of property, plant and equipment 1,048.06 763.36Amortisation of intangible assets 9.53 14.90Total 1,057.59 778.26

31 Other expenses ( in Crores)

Particulars For the year ended

31st March 2019 31st March 2018Consumption of stores and spare parts 873.68 624.24Power and fuel (Refer note 31.1) 1,148.11 1,078.22Repairs and maintenance (Refer note 31.2) 498.34 456.28Remuneration to auditors (Refer note 31.3) 0.22 0.18Rent 2.46 2.42Rates and taxes 6.45 5.58Insurance 17.96 27.74Handling and scrap recovery 234.43 195.50Freight outward 597.27 577.36Research and development expense 0.22 1.04ProvisionsShortage/damaged material/obsolescence/ 6.36 3.24non-moving items of storesDoubtful advances and claims 1.00 1.13Doubtful Debts 5.42 -Others 0.59 0.95Write-offsProperty, plant and equipment written off 1.24 28.30Shortage /damaged material /obsolescence /non-moving items of stores 0.01 -Doubtful advances and claims - 0.01Unviable mines expenditure- written off - 0.23Sundries 53.60 52.92Net (Gain) /Loss arising on Financial instruments designated as FVTPL (103.67) 42.82Donation 3.59 3.57Miscellaneous expenses (Refer note 31.4) 478.43 403.39

Total 3,825.71 3,505.12

(i) Development expenditure is capitalized only if it can be measured reliably and the related asset and processare identifiable and controlled by the Company.

(ii) Expenditure towards research and other development is accounted under the primary heads of accountand is expensed as and when incurred.

(iii) Capital Expenditureon Research and Development is included in the Intangible assets.

111

31.1 Power and fuel ( in Crores)

Particulars For the year ended

31st March 2019 31st March 2018Purchased power 403.02 436.00Coal 741.86 640.24Furnace oil/ LSHS/ LDO 3.23 1.98Total 1,148.11 1,078.22

Cost of Power and fuel does not include the cost of generation of power and production of certain fuel elements in theplant which are internally consumed. The related expenses have been included under the primary heads of account.

31.2 Repairs and maintenance ( in Crores)

Particulars For the year ended

31st March 2019 31st March 2018

Plant and Equipment 331.78 275.42Buildings 34.27 45.81Others 132.29 135.05Total 498.34 456.28

31.3 Remuneration to Auditors ( in Crores)

Particulars For the year ended

31st March 2019 31st March 2018As auditor - statutory audit 0.16 0.16In other capacityTaxation matters 0.04 -Other services 0.01 0.01Reimbursement of expenses 0.01 0.01Total 0.22 0.18

31.4 Miscellaneous expenses ( in Crores)

Particulars For the year ended

31st March 2019 31st March 2018Technical services 9.49 6.12Travelling expenses 69.45 65.69Printing and stationery 2.14 2.07Postage and telephone 3.29 4.09Water Charges 101.32 81.26Legal expenses 8.51 1.97Bank charges 10.61 6.00Community development welfare 6.07 6.03Security expenses 95.96 89.49Entertainment expenses 1.99 2.38Advertisement 21.17 17.91Demurrages and wharfages 26.34 4.57ISO Audit Expenses 0.14 0.19Selling expenses 19.57 15.93Exchange differences (Net) 102.38 99.69Total 478.43 403.39

112

31.5 Details of Corporate Social Responsibility expenditure ( in Crores)

Particulars For the year ended

31st March 2019 31st March 2018(a) Amount required to be spent by the Nil Nil

Company during the year

(b) Amount spent during the year

- Construction/ acquisition of any asset - -

- On purpose other than above 10.30 9.60

Total 10.30 9.60

31.6 Expenditure on Other expenses not included above and charged to:( in Crores)

Particulars 31st March 2019 31st March 2018

Capital Work in Progress / Expenditure During Construction

Power and fuel - 2.80

Repairs and maintenance - Plant and equipment and others - 0.14

Security expenses - 0.87

Travelling expenses 0.94 2.32

Postage and telephone - 0.16

Water charges 13.82 22.91

Advertisement - 0.24

Total 14.76 29.44

*Subsequent to the approval of the pension scheme of the company by Ministry of Steel ,the Board ofDirectors of the Holding Company, keeping in view affordability and financial sustainability to pay by theCompany, revised pension benefits to 3% of Basic Pay + DA for Executives and 2% of Basic Pay + DA forNon-Executives in the year of Loss and and 9% of Basic Pay + DA for Executives and 6% of Basic Pay + DAfor Non-Executives in the year of Profits.Accordingly the provision for pension has been reworked and anamount of 62.53 crore provided upto 31st March, 2018 has been written back during the current year andshown as exceptional item.

31A Exceptional items ( in Crores)

Particulars For the year ended

31st March 2019 31st March 2018

Write back of pension liabilities* (62.53) -

Reversal of wages and salary** (162.87) -

Additional liability towards enhanced - 541.05

ceiling on Gratuity***

Total (225.40) 541.05

113

** As per Department of Public Enterprise’s (DPE) guidelines, pay revision of executives and non- executiveemployees of the company are subject to fulfilment of affordability and financial sustainability clause. Thecompany made provision for pay revision during the year 2017-18 taking into consideration therepresentations made by Employees’ Associations of the Company to various Govt authorities includingadministrative ministry (Ministry of Steel) which in turn created constructive obligation on the company as on31.03.2018. However, subsequent to the clarification during the financial year 2018-19 given by DPE videOffice memorandum dt. 10.1.2019 on the applicability of affordability clause exemption from which could beobtained only by Cabinet approval, provision made towards salary revision of 162.87 crores for executiveand Non-executives employees during the year 2017-18, was been written back during the current yearsince the said constructive obligation was no more existing as on 31.03.2019. The said write back wasdisclosed under ‘Exceptional Item’ in the P & L Account. In the opinion of the Company’s management noliability is envisaged on account of the said pay revision on the date of this Balance Sheet.

*** Govt of India enhanced the ceiling on payment of Gratuity to employees, from the earlier limit of 10 lakh to 20 lakh per employee with effect from 29th March, 2018. Accordingly, the additional liability towards

enhanced Gratuity has been fully recognized in the statement of Profit and Loss for the year ended 31.03.2018,complying with the IndAS-19 standard dealing with “Employee Benefits”. Keeping in view the disclosurerequirements under IndAS-1 dealing with “Presentation of Financial Statements”, it is disclosed in the financialstatements separately as Exceptional item in FY 17-18, to enable the users of the financial statements toassess the relative financial performance of the company appropriately.

32 Statement of Compliance

These are the Company's separate financial statements prepared in accordance with IND AS.The financial statements were authorized for issue by the Board of Directors on 19.08.2019

33 Use of estimates and judgement

Information about assumptions and estimation uncertainties that have a significant risk of resulting in amaterial adjustment within the next financial year are included in the following notes:Note 8 – utilization of tax losses

Note 34 – measurement of defined benefit obligations

Notes 19 and 39 – provisions and contingencies

Jan'2007 295.37 280.09 15.28 15.28

to Mar'2018

Jan'2012

to Mar'2018 144.88 225.09 -80.21 -80.21

Excess provision to be written off: -64.93Add:Amount transferred to EDC /CWIP 2.40Net amount shown under Exceptional items. -62.53

Executive Pension Non-Executive Pension Total

PeriodPension To be

provided @ 9% forProfit years and 3%

for Loss years

ActualProvided inthe books

Excess(-)/Short (+)provision

Pension to beprovided @6% for Profityears yearsand 2% forLoss years

ActualProvided inthe books

Excess(-)/Short (+)provision

Excess(-)/Short (+)provision

Write back of pension liabilities details: ( in Crores)

114

34 Employee benefits

(i) a)Contribution to Superannuation Benefit Scheme

An amount of 6.93 Crore (31st March 2018: 6.53 Crore) recognised in the Statement of Profit and LossAccount and 0.04 Crore (31st March 2018: 0.34 Crore) in Capital Work in Progress towardsSuperannuation Benefit Scheme (Post Employment Benefit - Defined Contribution Plan).

b)Pension

The cumulative provision/liability towards pension benefit (Post Employment Benefit - Defined ContributionPlan) for executive & non-executive employees, amounting to 472.49 Crore and an amount of 32.13Crore recognised in the Statement of Profit and Loss Account and 0.11 Crore in Capital Work in Progressrespectively for FY 2018-19.

(ii) General description of the post employment benefits

a) Provident fund

The Company pays fixed contribution to Provident Fund, at predetermined rates, to a separate Trust, whichinvests the funds in permitted securities. On the contributions, the trust is required to pay a minimum rate ofinterest, to the members, as specified by Government of India. The obligation of the Company is limited tothe shortfall in the rate of interest on the Contribution based on its return on investments as compared to thedeclared rate.

The defined benefit plans expose the Company to actuarial risks, such as longevity risk, currency risk,interest rate risk and market (investment) risk.

b) Gratuity

The Company has a defined benefit gratuity plan in India, governed by the Payment of Gratuity Act, 1972.The Gratuity plan entitles an employee, who has rendered at least five years of continuous service, toreceive 15 days salary for each year of completed service and at one month salary for each completed yearof service beyond 30 years of service at the time of retirement/ exit. The defined benefit plan for gratiuity isadministered by a Gratuiy is fully funded by the company. The funding requirements are based on the gratuityfund's actuarial measurement framework set out in the funding policies of the plan. Employees do notcontribute to the plan.

c) Retirement settlement benefits

The retired employees, their dependents, as also the dependents of the employees expired while in serviceare entitled for travel and transport expenses to their place of permanent residence.

d) Retirement medical benefits

Medical benefits are available to retired employees at the Company's hospital/ under the health insurancepolicy.

e) Farewell scheme

Employees superannuating from the service of the company shall be given 10 Gms of gold each.The schemeshall cover all regular employees of the company.

115

- Gratuity ( in Crores)

Particulars 31st March 2019 31st March 2018

Reconciliation of present value of defined benefit obligationBalance at the beginning of the year 1,395.52 826.26

Benefits paid (77.66) (44.32)

Current service cost 22.69 7.18

Past service cost - 559.70

Interest cost 108.05 59.50

Actuarial loss/ (gain) on obligation (25.70) (12.80)

Balance at the end of the year 1,422.90 1,395.52Reconciliation of the present value of plan assetsBalance at the beginning of the year 849.65 812.27

Contributions paid into the plan 35.20 13.99

Benefits paid (77.66) (44.32)

Expected return 59.48 58.99

Actuarial gain/ (loss) on plan assets 0.62 8.72

Balance at the end of the year 867.29 849.65Net defined benefit liability (asset) 555.61 545.87Expense recognised in profit and loss

Current service cost 22.69 7.18

Interest cost 48.57 0.52

Past service cost

Charged to P & L - 541.05

Charged to Capital Work in Progress / Expenditure During Construction - 18.65

Interest income - -

71.26 567.40Remeasurements recognised in other comprehensive income

Actuarial (gain) / loss on defined benefit obligation (25.70) (12.80)

Difference between actual return and interest income on (0.62) (8.72)

plan assets - (gain)/loss(26.32) (21.52)

Plan assets

Cash and cash equivalents 3.41 0.71

Funds managed by Insurer 863.88 848.94

(iii) Other disclosures, as required under IND AS 19 on "Employee Benefits", in respect of postemployment defined benefit obligations are

116

- Retirement medical benefits ( in Crores)

Particulars 31st March 2019 31st March 2018

Reconciliation of present value of defined benefit obligationBalance at the beginning of the year 449.74 414.22Benefits paid (7.44) (7.07)Current service cost 14.15 16.95Interest cost 34.81 30.39Actuarial loss/(gain) on obligation (17.41) (4.75)Balance at the end of the year 473.85 449.74Expense recognised in profit and lossCurrent service cost 14.15 16.95Interest cost 34.81 30.39

48.96 47.34Remeasurements recognised in other comprehensive incomeActuarial (gain) / loss on defined benefit obligation (17.41) (4.75)

(17.41) (4.75)

- Retirement settlement benefits ( in Crores)

Particulars 31st March 2019 31st March 2018

Reconciliation of present value of defined benefit obligationBalance at the beginning of the year 47.41 45.46Benefits paid (2.94) (2.80)Current service cost 3.95 2.18Interest cost 3.69 3.26Actuarial loss/(gain) on obligation 2.71 (0.69)Balance at the end of the year 54.82 47.41Expense recognised in profit and lossCurrent service cost 3.95 2.18Interest cost 3.69 3.26

7.64 5.44Remeasurements recognised in other comprehensive incomeActuarial (gain) / loss on defined benefit obligation 2.71 (0.69)

2.71 (0.69)

- Farewell scheme ( in Crores)

Particulars 31st March 2019 31st March 2018

Reconciliation of present value of defined benefit obligationBalance at the beginning of the year 40.32 37.85Benefits paid (1.52) (1.17)Current service cost 1.01 0.94Interest cost 3.04 2.76Actuarial loss/(gain) on obligation (1.80) (0.06)Balance at the end of the year 41.05 40.32Expense recognised in profit and lossCurrent service cost 1.01 0.94Interest cost 3.04 2.76Past service gain - -

4.05 3.70Remeasurements recognised in other comprehensive incomeActuarial (gain) / loss on defined benefit obligation (1.80) (0.06)

(1.80) (0.06)

117

Actuarial assumptions Principal actuarial assumptions at the reporting date (expressed as weighted averages): ( in Crores)

Particulars 31st March 2019 31st March 2018

Discount rate 7.57% 7.68% Rate of increase in compensation levels 7.00% 7.00% Expected return on plan assets 7.57% 7.00% Medical Inflation Rate 5.00% 5.00%

Sensitivity analysisReasonably possible changes at the reporting date to one of the relevant actuarial assumptions, holding other assumptionsconstant, would have affected the defined benefit obligation and current service cost by the amounts shown below:

- Gratuity ( in Crores)

Particulars 31st March 2019 31st March 2018

Increase Decrease Increase Decrease

1. Effect of 0.5% Change in the assumed discount rate - Defined benefit obligation (50.44) 53.29 (48.01) 50.73 - Current service cost - - 23.95 26.792. Effect of 0.5% Change in the assumed salary escalation rate - Defined benefit obligation 24.52 (26.25) 23.70 (26.48) - Current service cost - - 24.16 27.03

- Retirement medical benefits ( in Crores)

Particulars 31st March 2019 31st March 2018

Increase Decrease Increase Decrease

1. Effect of 0.5% Change in the assumed discount rate - Defined benefit obligation (36.89) 40.97 (34.43) 38.66 - Current service cost - - 0.04 3.042. Effect of 0.5% Change in the assumed medical inflation rate - Defined benefit obligation 42.39 (38.62) 40.17 (35.94) - Current service cost - - 3.10 (0.02)

- Retirement settlement benefits ( in Crores)

Particulars 31st March 2019 31st March 2018

Increase Decrease Increase Decrease

Effect of 0.5% Change in the assumed discount rate - Defined benefit obligation (1.60) 1.70 (1.64) 1.74 - Current service cost - - 0.02 0.18

- Farewell scheme ( in Crores)

Particulars 31st March 2019 31st March 2018

Increase Decrease Increase Decrease

Effect of 0.5% Change in the assumed discount rate - Defined benefit obligation (1.38) 1.54 (1.77) 1.92 - Current service cost - - 0.02 0.11

118

Although the analysis does not take account of the full distribution of cash flows expected under the plan, it doesprovide an approximation of the sensitivity of the assumptions shown.

(IV) Provident fund :

The Company's contribution paid/ payable during the year to Provident Funds are recognised in the Statement ofProfit & Loss. The company's Provident Fund Trusts are exempted under Section 17 of the Employees' Provident Fundand Miscellaneous Provisions Act, 1952. The conditions for grant of exemption stipulated that the employer shallmake good, deficiency if any, in the interest rate declared by the Trusts vis-a-vis statutory rate. The Company does notanticipate any further obligations in the near forseeable future having regard to the assets of the funds and return oninvestment. This Note is to be read with Note No 34 (ii) (a).

35 Capital management

The Company aims to maintain a strong capital base so as to maintain the confidence of investor, creditor and marketand to sustain future development of the business.

The Company monitors capital using a ratio of 'adjusted net debt' to 'adjusted equity'. For this purpose, adjusted netdebt is defined as total liabilities, comprising interest-bearing loans and borrowings and obligations under financeleases, less cash and cash equivalents. Adjusted equity comprises all components of equity other than amountsaccumulated in the effective portion of cash flow hedges and cost of hedging, if any.

The Company's adjusted net debt to equity ratio at the reporting dates were as follows: ( in Crores)

Particulars 31st March 2019 31st March 2018

Total net debt 19,591.58 16,675.48Less: cash and cash equivalents 121.43 51.90Adjusted net debt 19,470.15 16,623.58Total equity 7,352.28 7,220.96Less: Cost of hedging - -Adjusted equity 7,352.28 7,220.96Adjusted net debt to adjusted equity ratio 2.65 2.30

36 Earnings per share (not annualised)

Basic earnings per share

Basic earnings per share is calculated by dividing:

- the profit attributable to owners of the group

- by the weighted average number of equity shares outstanding during the financial year:The calculations of profit attributable to equity shareholders and weighted average number of equity shares outstandingfor purposes of basic earnings per share calculation are as follows:

Particulars 31st March 2019 31st March 2018

i. Profit/ (loss) attributable to equity shareholders ( in Crore) 96.71 (1,369.01)ii. Weighted average number of Equity 4,889,846,200 4,889,846,200 Shares outstanding during the yeariii. Face value per share ( ) 10 10

Basic and Diluted EPS ( ) 0.20 (2.80)The Company does not have any potentially dilutive equity shares outstanding during the year.

37 Leases

A. Operating lease in the capacity of lessor

The Company has leased out facility under cancellable operating lease agreements. Hence,the Company is notrequired to disclose the future lease income as per the provisions of Ind AS 17.B. Operating lease in the capacity of lessee

The Company has taken on lease various offices under cancellable operating lease agreements. Hence,the Companyis not required to disclose the future lease payments as per the provisions of Ind AS 17.

119

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( in Crores)

Particulars 31st March 2019 31st March 2018

Balance at 1st April 20.83 20.98

Net measurement of loss allowance 5.21 (0.15)

Balance at 31st March 26.04 20.83

C. Financial risk managementRisk management frameworkThe Company is exposed to various risk in relation to financial instruments. The company's financial asset and liabilities bycategory are summarised in note 38A.'The main types of risks are market risk, credit risk and liquidity risk.The Company’srisk management is coordinated at its headquarters, in close cooperation with the board of directors, and focuses onactively securing the Company’s short to medium-term cash flows by minimising the exposure to volatile financial markets.Long-term financial investments are managed to generate lasting returns. The Company does not actively engage in thetrading of financial assets for speculative purposes nor does it write options. The most significant financial risks to which theCompany is exposed are described below.The Company has exposure to the following risks arising from financial instruments:i) credit riskii) liquidity riskiii) market riski) Credit riskCredit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet itscontractual obligations, and arises principally from the Company's receivables from customers; and loans.The carrying amounts of financial assets represent the maximum credit risk exposure.Trade receivables and loansThe Company’s exposure to credit risk is influenced mainly by the individual characteristics of each customer. However,management also considers the factors that may influence the credit risk of its customer base, including the default riskassociated with the industry in which customers operate.Loss rates are calculated using a ‘roll rate’ method based on the probability of a receivable progressing through successivestages of delinquency to write-off. Roll rates are calculated separately for exposures in different segments based on thecommon credit risk characteristics.

Movements in the allowance for impairment in respect of trade receivables and loansThe movement in the allowance for impairment in respect of trade receivables and loans is as follows:

B. Measurement of fair values

The following table shows the valuation techniques used in measuring Level 2 and Level 3 fair values for financialinstruments measured at fair value in the balance sheet, as well as the significant unobservable inputs used.

Type Valuation technique Significant Inter-relationshipunobservable inputs between significant

unobservable inputs andfair value measurement

Forward exchange contracts Forward pricing: The fair value is Not applicable Not applicable

determined using quoted forward

exchange rates at the reporting date.Interest rate swaps Swap models: The fair value is Not applicable Not applicable

determined using quoted swap rates

at the reporting date.

Financial liabilities Discounted cash flows: The valuation Not applicable Not applicable

model considers the present value of

expected payment, discounted using

a risk-adjusted discount rate.

122

Cash and cash equivalentsThe Company holds cash and cash equivalents of 121.43 Crore at 31st March 2019 (31st March 2018: 51.90Crore). The cash and cash equivalents are only held with highly rated banks.Impairment on cash and cash equivalents has been measured on the 12-month expected loss basis and reflectsthe short maturities of the exposures. The Company considers that its cash and cash equivalents have low creditrisk based on the external credit ratings of the counterparties

Derivatives

The derivatives are only entered into with highly rated scheduled banks.ii) Liquidity riskLiquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with itsfinancial liabilities that are settled by delivering cash or another financial asset. The Company’s approach tomanaging liquidity is to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when theyare due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage tothe Company’s reputation.

The Company aims to maintain the level of its cash and cash equivalents at an amount in excess of expected cashoutflows on financial liabilities (other than trade payables). The Company also monitors the level of expected cashinflows on trade receivables and loans together with expected cash outflows on trade payables and other financialliabilities.

Exposure to liquidity risk

The following are the remaining contractual maturities of long term financial liabilities at the reporting date. Theamounts reflect the principal amounts that are gross and undiscounted, and exclude the impact of nettingagreements

31st March 2019 ( in Crores)

Contractual Cashflows Particulars Carrying Total 12 months 1-2 Years 2-5 Years More than

Amount or less 5yearsNon-derivative financial liabilitiesSecured bank loans 9,309.26 9,309.26 - 613.71 3,370.96 5,324.59

Unsecured bank loan - - - - - -

9,309.26 9,309.26 - 613.71 3,370.96 5,324.59Derivative financial liabilitiesInterest rate swaps - - - - - -

Other forward exchange contracts - - - - - -

- - - - - -

31st March 2018 ( in Crores)

Contractual Cashflows Particulars Carrying Total 12 months 1-2 Years 2-5 Years More than

Amount or less 5yearsNon-derivative financial liabilitiesSecured bank loans 6,545.16 6,545.16 - 448.80 1,907.23 4,189.13

Unsecured bank loan - - - - - - 6,545.16 6,545.16 - 448.80 1,907.23 4,189.13

Derivative financial liabilitiesInterest rate swaps - - - - - -

Other forward exchange contracts 0.60 0.60 0.60 - - - 0.60 0.60 0.60 - - -

123

Except for these financial liabilities, it is not expected that cash flows included in the maturity analysis could occursignificantly earlier, or at significantly different amounts.iii) Market riskMarket risk is the risk that results from changes in market prices – such as foreign exchange rates, interest ratesand equity prices – will affect the Company’s income or the value of its holdings of financial instruments. Theobjective of market risk management is to manage and control market risk exposures within acceptable parameters,while optimising the return.The Company uses derivatives to manage market risks.Currency risk:The Company is exposed to currency risk to the extent that there is a mismatch between the currencies in whichsales, purchases and borrowings are denominated. The functional currency for the Company is . The currenciesin which these transactions are primarily denominated is , which is also the company's functional and presentationcurrency.The Company uses forward exchange contracts to hedge its currency risk, most with a maturity of less than oneyear from the reporting date.Currency risks related to the principal amounts of the US dollar bank loan, which have been fully hedged usingforward contracts that mature on the same dates as the loans are due for repayment. These contracts aredesignated as derivative contracts.Interest rate risk:The Company aims to minimise its interest rate risk exposure by maintaining a balance of fixed/ floating rate ofinterest.Exposure to interest rate risk:The interest rate profile of the Company's interest-bearing financial instruments as reported to management is asfollows:

( in Crores)

Particulars 31st March 2019 31st March 2018

Fixed rate instrumentsFinancial assets 142.82 222.29Financial liabilities 6,600.73 6,456.02

6,743.55 6,678.31Variable rate instrumentsFinancial assets - -Financial liabilities 12,990.82 10,219.45

12,990.82 10,219.45

Cash flow sensitivity analysis for variable-rate instrumentsA reasonably possible change of 100 basis points in interest rates at the reporting date would have increased /(decreased) equity and profit or loss by the amounts shown below. This analysis assumes that all other variables,in particular foreign currency exchange rates, remain constant.

( in Crores)

Particulars Profit or loss Equity, pre tax

100 bp increase 100 bp decrease 100 bp increase 100 bp decrease

31st March 2019Variable-rate instruments (129.90) 129.90 (129.90) 129.90

31st March 2018

Variable-rate instruments (102.19) (102.19) (102.19) 102.19

124

39 Contingent liabilities and commitments

Contingent liabilitiesA. Claims against company not acknowledged as debts ( in Crores)

Particulars 31st March 2019 31st March 2018

Contractors / suppliers / customers CPSE^ 60.67 1.51 Other than CPSE 785.22 628.44Local Authorities - state govt. 593.03 510.15Sales tax matters* 1,014.78 1,014.21Income tax*** 137.55 173.28Customs / excise duty 254.84 255.82Others CPSE - - Other than CPSE 439.35 439.46Total 3,285.44 3,022.87

* No liability is expected to arise as the movement of goods were on stock transfer and sales tax is paid on eventual sales.**Contingent Liabilities as on 31.03.2019 are after considering a reduction of 150.94 Crores from the balance as on 31.03.2018*** 36.24 crores reduced during the year based on relief given by CIT(A)-9 Hyderabad vide common order dt.30.04.2019 for AY 2012-13 to AY 2014-15 inline with IND AS-10^Differential price as claimed by Central Coalfields Limited (CCL) for the indigenous coking coal suppliedduring13.01.2017 to 31.03.2017 amounting to 59.03 Crore being the amount billed over and above MOU 2016-17agreed prices has not been accounted for. Pending settlement of dispute, the above liability has been treated ascontingent liability.B. Claims in Courts in connection with Land Acquisition: - Amount not ascertainable

C. Liability towards reimbursement of excise duty on structural works - Amount not ascertainableD. Show cause notices issued by various Government Authorities are not considered as contingent liabilities.

Commitments ( in Crores)

Particulars 31st March 2019 31st March 2018

Estimated amount of contracts remaining to beexecuted on capital account and not provided 2,909.13 2,786.55Total 2,909.13 2,786.55

OthersRINL and Air Liquide India Holding Private Limited (ALIH) entered (November 2010) into contract for supply for 15years period of Oxygen and Nitrogen gases and liquids primarily for captive consumption to RINL by establishmentof Cryogenic Air Separation Plant on Build, Own and Operate (BOO) basis with an option to transfer.ALIH vide letter dated 16 December 2014, terminated the contract and proposed to transfer the ownership ofASUs to RINL subject to payment of around 455 crore.But, RINL rejected (6 January 2015) termination notice of ALIH and insisted ALIH to perform its obligations underBOO Contract. Since ALIH did not withdraw termination notice, RINL was to agree for in principle takeover subjectto inter alia, technical audit of ASUs. In spite several meetings took place and correspondence exchanged tofinalise modalities for takeover by RINL, no agreement could be reached. Hence, RINL was compelled to invoke(October 2017) arbitration.RINL appointed its nominee Arbitrator, Dr Arijit Pasayat, Retired Judge, the Supreme Court of India. ALIH appointedits nominee Arbitrator, Mr Harish Salve, Senior Advocate and the two appointed nominees nominated the Presiding

125

Arbitrator, Mr Michael Black QC. Above three Arbitrators constituted Arbitral Tribunal in December 2017. As pertime schedule provided (February 2018) by Arbitral Tribunal, final hearing was scheduled in January/February2019.RINL filed (April 2018) its Statement of Claims (comprising six different claims) before Arbitral Tribunal seekingthree alternative reliefs, which arei. Specific performance of entire BOO Contract for agreed 15 years and terms and conditions of the BOO

Contract with payment of damages to the tune of 1935.64 crore plus accrued interestii. Takeover of BOO plant by RINL subject to reasonable and fair valuation and payment of damages to the tune

of 1935.64 crore plus accrued interest oriii. Dismantle ASUs and take back by ALIH and payment of total damages of 3,276.638 Crore. RINL furnished

(January 2019) Amended Statement of Claims on the basis that RINL’s experts concluded that production ofgases and liquids in HP GOX mode from ASUs installed by ALIH would be Nil and this warranted revision ofthree out of six claims enhancing total claims value to 2350.024 crore plus accrued interest (for alternativesi or ii) and 3701.28 crore (for alternative iii). The application is still pending and no final orders have beenpassed on the proposed amendments

ALIH filed (May 2018) its Statement of Defence and Counter Claims seeking alternative reliefs, which area) In case of takeover of the BOO Plant by RINL, payment of actual cost of Production Facility of 764.89 crore

+ To Be Assessed (TBA) or reimbursement of Loss of Revenue of 1426.84 crore + TBA orb) In case of no takeover of BOO Plant by RINL, payment of actual cost of Production Facility of 734.02 crore

+ To Be Assessed (TBA) or reimbursement of Loss of Revenue of 1426.84 crore + TBA .Thereafter, ALIHsought (June 2018) seeking directions from the Arbitral Tribunal enabling it to carry out commissioning activitiesand upon stabilization, effectuating interim handover of the Production Facility to RINL subject to payment ofa sum of 250 crore. Same was dismissed by the tribunal in the month of June,2018.

The evidentiary hearing on issues related to liability was concluded in April 2019 and the award on liability issueshas been reserved by the Tribunal.

B-II. Independent Directors as on 31st March 2019

Name of the related party Nature of relationship

Shri S K Mishra Independent DirectorShri Sunil Gupta Independent DirectorShri Ashwini Mehra Independent Director

40 Related partiesA. List of related parties and nature of relationship Name of the related party Nature of relationship CountryEastern Investments Limited (EIL) Subsidiary IndiaThe Orissa Minerals Development Company Limited Subsidiary of EIL IndiaThe Bisra Stone Lime Company Limited Subsidiary of EIL IndiaThe Borrea Coal Co. Ltd. (In Liquidation) Subsidiary of EIL IndiaRINMOIL Ferro Alloys Pvt Ltd Joint ventures IndiaRINL Powergrid TLT Pvt Ltd Joint ventures IndiaInternational Coal Ventures Pvt Ltd (ICVL) Associate IndiaMINAS DE BENGA LIMITADA ICVL's Joint Venture Mozambique

B-I. Key Management personnel as on 31st March 2019

Name of the related party Nature of relationshipShri P K Rath Chairman-cum-Managing DirectorShri P Raychaudhury Director (Commercial)Shri Kishore Chandra Das Director (Personnel)Shri V V Venugopal Rao Director (Finance) & CFO

126

C. Post employment plans of Rashtriya Ispat Nigam Limited

Name of the related party Country

RINL Employees' Group Gratuity Fund Trust India

Vishakhapatnam Steel Project Employees' Provident Fund Trust India

RINL Employees' Superannuation Benefit Fund Trust India

D. Transactions with related parties during the year ended ( in Crores)

Name of the related party Nature of transactions 31st March 2019 31st March 2018

International Coal Ventures Pvt Ltd ( ICVL) Receipt of equity shares - 40.00RINL Powergrid TLT Pvt Ltd Receipt of equity shares 0.60 -RINMOIL Ferro Alloys Pvt Ltd Receipt of equity shares 0.01 -Eastern Investments Limited ( EIL) Dividend income 0.04 0.09RINL Powergrid TLT Pvt Ltd Advance Share Capital Paid - 0.60The Bisra Stone Lime Company Limited Purchases 15.09 16.21MINAS DE BENGA LIMITADA Purchases 346.19 54.90The Bisra Stone Lime Company Limited Advances to Supplier 11.69 13.66The Bisra Stone Lime Company Limited Interest earned from Supplier - Advances 2.97 1.65International Coal Ventures Pvt Ltd ( ICVL) Salaries Recoverable 0.83 0.43International Coal Ventures Pvt Ltd ( ICVL) Board meeting exp recoverable 0.03 0.02Eastern Investments Limited ( EIL) Board meeting exp recoverable 0.01 0.02The Orissa Minerals Development Company Limited Board meeting exp recoverable - 0.03The Bisra Stone Lime Company Limited Board meeting exp recoverable 0.01 0.03RINL Employees' Group Gratuity Fund Trust Contribution towards trust 35.20 13.99Vishakhapatnam Steel Project Employees'Provident Fund Trust Contribution towards trust 151.71 140.60RINL Employees' Superannuation Benefit Fund Trust Contribution towards trust 6.97 6.87

E. Balances outstanding (unsecured & considered good) ( in Crores)

Name of the related party Details 31st March 2019 31st March 2018

Eastern Investments Limited Investment in Subsidiary 361.03 361.03International Coal Ventures (p) Ltd Investment in Associate 376.36 376.36RINL Powergrid TLT Pvt Ltd Investment in Joint Venture 4.00 3.40RINMOIL Ferro Alloys Pvt Ltd Investment in Joint Venture 0.11 0.10RINMOIL Ferro Alloys Pvt Ltd Other financial assets 1.21 1.21International Coal Ventures (p) Ltd Other financial assets 1.41 0.55Eastern Investments Limited Other financial assets 0.03 0.02The Bisra Stone Lime Company Limited Advances recoverable 41.14 29.45The Orissa Minerals Development Company Limited Advances recoverable 0.03 0.05The Bisra Stone Lime Company Limited Other financial assets 0.36 0.18MINAS DE BENGA LIMITADA Amounts payable 51.75 0.04The Bisra Stone Lime Company Limited Amounts payable 1.21 0.82The Orissa Minerals Development Company Limited Other financial liability - 0.07RINL Employees' Group Gratuity Fund Trust Other financial liability/(asset) 555.62 545.87Vishakhapatnam Steel Project Employees'Provident Fund Trust Other financial liability 13.20 11.62RINL Employees' Superannuation Benefit Fund Trust Other financial liability 3.10 0.57

127

Note : ( in Crores)

Particulars 31st March 2019 31st March 2018

Provision for doubtful debts related to the amount of Nil Niloutstanding balances

F. Key management personnel compensation & Sitting Fee paid ( in Crores)

Particulars 31st March 2019 31st March 2018

Short-term employee benefits 1.36 1.55Post-employment benefits 0.20 0.46Other long-term benefits 0.11 0.45Sitting fee paid to Independent Directors 0.26 0.29

1.93 2.75

42 a) The Company's business is construed as one business segment which comprises of mainly productionof Steel products, whose associated risks and returns are predominantly the same. Further, the Companyhas no geographical segments which are subject to different risks and returns.

b) Recent Accounting Pronouncements :

In March, 2019, the Ministry of Corporate Affairs (MCA) issued the Companies (Indian AccountingStandards) Amendment Rules, 2019 and Companies (Indian Accounting Standards) SecondAmendment Rules, 2019, notifying Ind AS 116, ‘Leases’ amendment to certain other standards. Theseamendments are applicable to the Company from 1st April, 2019. The Company will be adopting theamendments from their effective date.

Ind AS 116, Leases. “Ind AS 116 replaces IND AS 17. This Ind AS 116 introduces a single lesseeaccounting model . The Company is in the process of evaluating the impact on the Financial statements.

c) Previous year Accounting Pronouncements effect on current year accounts :

(i) Ind AS 115, Revenue from contracts with Customers. Ind AS 115 combines,enhances and replacesguidances on recognising the revenue with a single standarard.During the year the company hasevaluated the impact on financial statements. There is no impact on the Financial statements .

(ii) Appendix B to Ind AS 21, ‘Foreign currency transaction and advance consideration’: The Appendixclarifies that the date of the transaction for the purpose of determining the exchange rate to use oninitial recognition of the asset, expense or income (or part of it) is the date on which an entity initiallyrecognises the non-monetary asset or non-monetary liability arising from the payment or receipt ofadvance consideration towards such asset, expense or income. If there are multiple payments or receiptsin advance, that an entity must determine transaction date for each payment or receipts of advanceconsideration.During the year the company has evaluated the impact on financial statements.There isno impact on the Financial statements .

d) 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 respectof balances confirmed.

e) Previous year's figures have been rearranged / regrouped wherever necessary to conform to currentyear's classification.

128

During the year, the Board of Directors (the Board)

reviewed the affairs of Subsidiaries and Joint Ventures.

In accordance with Section 129(3) of the Companies

Act, 2013 Consolidated Financial Statements had been

prepared which form part of the Annual Report. Further,

the report on the performance and financial position of

each of the subsidiary, associate and joint venture and

salient features of the financial statements in the

prescribed Form AOC-1 is annexed to this report.

Subsidiaries:

1. Eastern Investments Limited (EIL):

The income of the company is derived mainly from

(i) Dividends from investments in shares of various

companies including subsidiary company OMDC

and (ii) Interests on term deposits with banks and

deposits in bonds.

The company sustained a loss of 0.20 Crores

as against profit before tax of 0.07 Crores in

previous year.

2. The Orissa Minerals Development Company

Limited (OMDC) :

The income of the company is derived mainly from

interest on term deposits since there is no

production due to non-availability of statutory

clearances for mining operation. The Company

deployed the surplus funds in fixed deposits and

earned an interest income of 51.51 Cr on fixed

deposits during the year which is included under

other income of the Statement of Profit & Loss

Account.

Pursuant to the judgment of Hon'ble Supreme

Court dated 02.08.2017, Dy Director of Mines,

Odisha had issued different demand notices

dated 02.09.2017, 23.10.2017 & 13.12.2017 to

the Company for the 3 leases in the name of the

Company and to BPMEL for the 3 leases in the

name of BPMEL towards compensation against

excess mining amounting 1,563.76 Cr. The

SUBSIDIARIES AND JOINT VENTURESamount of Demand for OMDC Leases is 702.18

Cr and for BPMEL leases 861.57 Cr. OMDC

has paid the compensation of 552.66 Cr towards

OMDC Leases by which full payment of

compensation for Bagiaburu and Belkundi leases

have been made. OMDC has made payment of

compensation of 0.27 Cr towards BPMEL

leases. Liability for remaining amount of

compensation towards Bhadrashahi mines is

provided in the Book of accounts along with

interest as on 31.03.2019 for 309.88 Cr. Since

the mining right of BPMEL lease are sub-judice

and the consequence of legal outcome is

unknown, the balance amount of compensation

of 1,067.98 Cr is shown in contingent liability.

As a result, of compensation cess accounted

during the year, Profit/ (Loss) before tax stood at

(638.11) Cr as compared to (258.17) Cr for

the previous year. Profit/(Loss) after tax was

(451.63) Cr as compared to (252.96) Cr during

the previous year.

3. The Bisra Stone Lime Company Limited( BSLC) :

Total Income reduced to 39.82 Cr from 46.29

Cr in the previous year. The Loss increased to

28.02 Cr as against a loss of 10.71 Cr in the

previous year, mainly on account of excess

mining compensation and other non-recurring

provisions of 15.58 Cr during the year.

Joint Ventures:

1. RINL Powergrid TLT Private Limited(RPTPL):

RPTPL, a 50:50 Joint Venture company of two

Navratna CPSEs of India namely Rashtriya Ispat

Nigam Limited (RINL) and Power Grid

Corporation of India Limited (POWERGRID), has

been incorporated on 19th August, 2015 under

the provisions of the Companies Act, 2013 in the

jurisdiction of State of Andhra Pradesh, located

at Visakhapatnam, Andhra Pradesh.

129

The Authorized share capital and the Paid up

capital of the JV Company as on 31.03.2019

stands at 50.0 Crores and 8.00 Crores

respectively.

Subsequently, one of the JV partner

POWERGRID sought to hold the Project in view

of changed business scenario of transmission

sector. RINL Board took note of the developments

and advised to hold back all the activities of the

TLT Project and Financial investments/

commitments till a final decision is taken in this

regard and advised to seek the approval for

closure of RPTPL from Ministry of Steel,

Government of India. Final decision of MOS on

the proposal for closure of RPTPL is awaited.

2. RINMOIL Ferro Alloys Private Limited

(RINMOIL)

“RINMOIL Ferro Alloys Pvt. Ltd. (RINMOIL) is a

50:50 joint venture company between RINL and

MOIL incorporated on 29.07.2009 to set up Ferro

Alloy manufacturing unit in Visakhapatnam. The

project is yet to be implemented due to high

power tariffs in the state of Andhra Pradesh. The

company has been exploring the possibility of

locating the plant in Bobbili or Visakhapatnam or

Gumgaon, considering the present market

scenario and to avail advantage of logistics &

power incentives declared for Vidarbha region in

the state of Maharashtra.

The Board desired to go initially for capacity of

2x18 MVA furnaces for producing Silico

Manganese keeping in view of increased

requirement by RINL after its expansion. The

Board decided to analyse the comparative

financials of TEFR for Visakhapatnam / Gumgaon

/ Bobbili for taking appropriate decision.

Accordingly, SBI Capital Markets Limited was

awarded the work to arrive the comparative

financials by M/s MOIL, for setting up of the plant

at Bobbili, Gumgaon and Visakhapatnam. Based

on the report of SBI Capital Markets Limited,

further decision shall be taken.”

Associate

International Coal Ventures Private Limited

(ICVL):

"ICVL has 100% subsidiary in Mauritius by the

name of ICVL, Mauritius which has 100%

step-down subsidiary Riversdale Mining (Pty)

Limited (RML) in Australia which in turn holds a

share of 65% stake in Minas De Benga Mauritius

Limited (a joint venture enterprise operating coal

mines in Mozambique).

Production & Export during FY 2018-2019 –

During the year, the Company has produced one

million tons of coking coal. 9,30,153 tons of

coking coal (25 Shipments) and 6,28,165 tons of

thermal coal (18 Shipments) have been shipped

to the Promoter Companies i.e. SAIL & RINL.

During the current financial year, the total income

of the company decreased to 33.46 crores from

43.46 crores in FY 2017-18 and the company

made a loss before tax of 114.21 crores as against

the profit of 21.28 crores in FY 2017-18."

130

Fin

anci

al H

igh

ligh

ts in

Cro

res

EIL

( in

cro

res)

OM

DC

( in

cro

res)

BS

LC

( in

cro

res)

ICVL

(Con

solid

ated

)

( in

cro

res)

Co

nso

lidat

ed

( in

cro

res)

Su

bsi

dia

ries

(Sta

nd

alo

ne)

*A

ssoc

iate

RIN

L G

rou

pT

he

fin

anci

al p

erfo

rman

ce o

fS

ub

sid

iary

/Jo

int

Ven

ture

/A

sso

ciat

e C

om

pan

ies

& R

INL

Gro

up

(Co

nso

lidat

ed)

P

arti

cula

rs20

18-1

920

17-1

820

18-1

920

17-1

820

18-1

920

17-1

8 20

18-1

920

17-1

820

18-1

920

17-1

820

18-1

920

17-1

8

Tot

al In

com

e0.

510.

5953

.95

55.2

239

.82

46.2

933

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43.4

620

916.

2214

956.

4920

838.

7114

872.

42

Pro

fit b

efor

e fin

ance

cha

rges

,Tax

,

Dep

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n/ A

mor

tisat

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(PB

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(0.2

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07(6

19.9

0)(2

42.2

0)(2

6.86

)(9

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(6.6

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1127

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99.4

918

02.9

134

6.19

Less

: Fin

ance

Cha

rges

0.00

0.00

4.28

0.96

0.94

0.98

107.

466.

7312

82.8

394

0.27

1277

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938.

33

Pro

fit b

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e D

epre

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ortis

atio

n (P

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)(0

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0.07

(624

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(27.

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(10.

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114.

11)

21.3

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15.0

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l ite

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(0.2

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0.00

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1.05

Net

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axat

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(PB

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58.1

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8.02

)(1

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4.21

)21

.28

(100

2.90

)(2

175.

31)

(306

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(191

1.45

)

Pro

visi

on fo

r ta

xatio

n0.

050.

17(1

86.4

7)(5

.21)

0.00

0.00

0.00

0.00

(590

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(547

.49)

(403

.60)

(542

.44)

Pro

fit/(

Loss

) af

ter

Tax

atio

n (P

AT

)

befo

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tere

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(0.2

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(451

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(252

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(28.

02)

(10.

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21)

21.2

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627.

82)

96.7

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01

Tota

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year

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(0.2

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(452

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(252

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(28.

12)

(10.

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88.4

225

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(326

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(160

6.13

)13

1.32

-134

8.70

Pay

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incl

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r to

Gen

eral

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erve

0.00

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0.00

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0.00

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0.00

0.01

0.00

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*Sub

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( in

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RIN

L

131

3

4

56789101112131415

1 Sl.NO 1 2 3

Eastern

Investments

Limited(EIL)

The Bisra Stone

Lime Company

Limited

(Subsidiary of EIL)

The OrissaMinerals

DevelopmentCompany Limited(Subsidiary of EIL)

2

InternationalCoal VenturesPrivate Limited

RINL PowergridTLT (P) Ltd

PARTICULARS

Name of the Subsidiary

FORM AOC-I(Pursuant to first provisio to sub-section (3) of section 129 read with rule 5 of Companies (Accounts) rules, 2014)

Statement containing salient features of the financial statement of subsidiaries/associate companies/joint venture

Part “A”: Subsidiaries ( in Crores)

Reporting period for the subsidiary concerned, if different fromthe holding company’s reporting periodReporting currency and Exchange rate as on the last date ofrelevant Financial year in the case of foreign subsidiaries Not Applicable Not Applicable Not ApplicableShare Capital 1.44 87.29 0.60Reserves & Surplus 269.52 (231.80) 134.32Total assets 272.39 20.37 686.61Total Liabilities 1.43 164.88 551.69Investments 260.28 0.00 0.02Turnover 0.72 38.89 0.00Profit Before Taxation (0.20) (28.02) (638.11)Provision for Taxation 0.05 0.00 (186.48)Profit After Taxation (0.26) (28.02) (451.63)Proposed dividend 0.00 0.00 0.00% of shareholding 51.00% 50.22%* 50.01%

* Extent of holding through EIL is 50.01% and directly is 0.21%.

1 Name of Subsidiaries which are yet to commence operations NIL

2 Name of Subsidiaries which have been liquidated or sold during the year NIL

Part “B” : Associates and Joint VenturesStatement pursuant to Section 129 (3) of the Companies Act, 2013 related to Associate Companies and Joint Ventures

Latest Audited Balance Sheet DateShares of Associate/ Joint Ventures held by the companyon the year end No. 110000 376357143 4000000Amount of Investment in Associates/ Joint Venture ( in Crores) 0.11 376.35 4.00Extend of Holding % 50.00% 25.94% 50.00%Description of how there is significant influence Joint Venture Associate Joint VentureReason why Associate/Joint Venture is not consolidated Not Applicable Not Applicable Not ApplicableNetworth attributable to Shareholding as per latestaudited Balance Sheet ( in Crores) 0.07 559.37 3.97Profit/Loss (-) for the yeari Considered in Consolidation (0.01) (29.63) (0.01)ii Not Considered in Consolidation (0.01) (84.59) (0.01)

1 Name of associates/Joint Ventures which are yet to commence operations-(i) RINMOIL Ferro Alloys Private Limited (ii) RINL Powergrid TLT (P) Ltd

2 Name of associates/Joint Ventures which have been liquidated or sold during the year- NILFor and on behalf of Board of Directors

Same as holding company’s reporting period i.e.31st March 2019

SlNo

Same as holding company’s reporting periodi.e.31st March 2019

RINMOIL FerroAlloys Private

Limited

12

345

6

Sd/- Sd/-(P. K. Rath) (V V Venugopal Rao)

Chairman cum Managing Director Director (Finance) and Chief Financial OfficerSd/-

(M Jagadeeshwara Rao)Company Secretary

Place : VisakhapatnamDate : 19-08-2019

132

M. Bhaskara Rao & Co.Chartered Accountants

TO

THE MEMBERS

M/s. RASHTRIYA ISPAT NIGAM LIMITED

Report on the Consolidated Ind AS FinancialStatements

Qualified Opinion

We have audited the accompanying consolidated IndAS financial statements of M/s. RASHTRIYA ISPATNIGAM LIMITED (hereinafter referred to as "theHolding Company") and its subsidiaries and jointventures (the Holding Company and its subsidiariesand joint ventures together referred to as "the Group"includes M/s Eastern Investments Limited (EIL) withits subsidiaries (M/s. The Orissa Minerals DevelopmentCompany Limited (OMDC), (M/s. The Bisra Stone LimeCompany Limited (BSLC) & (M/s Borrea CoalCompany Limited), and its associate companies of(M/s. The Burrakur Coal Company Limited) & M/s The Karanpura Development Company Limited)and Joint Ventures of the Holding Company,(M/s. RINMOIL Ferro Alloys Private Limited) &(M/s. RINL Power Grid TLT Private Limited), and itsassociate company of M/s. International Coal VenturesPrivate Limited comprising of the Consolidated BalanceSheet as at 31st March, 2019, the ConsolidatedStatement of Profit and Loss including OtherComprehensive Income, the Consolidated Cash FlowStatement and Statement of Changes in Equity for theyear then endedon that date, and a summary of thesignificant accounting policies and other explanatoryinformation (hereinafter referred to as "theconsolidated Ind AS financial statements").

In our opinion and to the best of our information andaccording to the explanations given to us, except forthe effects of the matter described in the Basis ofQualified Opinion section of our report, the aforesaidconsolidated Ind AS financial statements give theinformation required by the Companies Act, 2013 (the"Act") in the manner so required and give a true andfair view in conformity with Indian Accounting Standardsprescribed under section 133 of the Act read with the

Companies (Indian Accounting Standards) Rules,2015, as amended (''Ind AS'') and other accountingprinciples generally accepted in India, of theconsolidated state of affairs of the Group (as referredto below in the Other Matter Paragraph) as at 31stMarch 2019, and their consolidated profit/loss includingother comprehensive income, their consolidated cashflows and the changes in equity for the year ended onthat date.

Basis for Qualified Opinion

1) In respect of M/s Eastern Investments Limited(subsidiary company of M/s RashtriyaIspatNigam Limited)

a) As per section 177 of the Companies Act 2013and Rule 6 & 7 of the Companies (Meeting ofBoard and its Powers) Rule, 2014, every listedcompany shall constitute an Audit Committee,but company has not formed an Audit Committeein compliance with the provisions of the Act.

b) The Government of West Bengal has acquireda land measuring an approximate area of 27.58acres out of the total land area of 76.77 acres ofland at Lawrence Property, Bauria, Howrah andnotice has also been received for the acquisitionof balance portion of land, Company's appealfor reward of compensation towards suchacquisition has been upheld by District Judgeand for acquisition of balance portion of land interms of notice received under UrbanLand(Ceiling & Regulation) Act, has also beencontested by the Company. The land ispresently under unauthorised occupation of localinhabitants and account effect thereon has notbeen given. Hence the land has neither beentransferred in the name of the Company nor theland is under the possession of the company,however the Company continue to carry thatland in its books. Due to this the assets isoverstated to the extent of 3.40 Lakhs.

c) The Company has certain disputes and it is notpossible to determine, with reasonable accuracy,

Enclosure to Directors’ Report

INDEPENDENT AUDITOR'S REPORT

133

the effect of settlement as and when reachedand loss likely to be incurred in respect of thefollowing:

i) The dispute regarding ownership of the fixedassets included under Block & Development.

ii) The Physical existence of Railway Siding andControl thereon has been stated to be doubtful.

d) The other short term liability payable include 2.56 Lakhs relating to Compensation Received

for Property Under Dispute, however nodocument supporting the said compensationreceived was produced to us for verification. Asper information and explanation given to us, thesaid compensation was received long back andwas booked under the head short term liabilities.In absence any concrete documents, the amountshould be written back in consolidated Ind ASfinancial statements. Due to this the liabilities isoverstated to the extent of 2.56 Lakhs.

2) In respect of M/s RINL Powergrid TLT PrivateLimited (One of the Joint Venture of M/sRashtriya Ispat Nigam Limited),

Material Uncertainty related to Going Concern

This below event or condition, have beenidentified that cast significant doubt on theentity's ability to continue as a going concern.

One of JV partner, M/s Power Grid Corporationof India Limited, Board of directors in its meetingheld on Dt. 01.05.2018 accorded approval forinitiating procedure for winding up/removal of thename of RINL Powergrid TLT Private Limited.RINL, the other JV partner has accepted inprincipal for the winding up, and in its 318thBoard meeting Dt. 08.03.2019 has accordedapproval for seeking the approval from Ministryof Steel, Government of India, and steps towardsthe approval has been initiated.

Based on the audit evidence obtained and onevaluation, it is to conclude that materialuncertainty regarding Going Concern exists, inview of the requirements of the applicablefinancial reporting framework, and hence wehave given Qualified Audit Report.

We conducted our audit of the consolidated IndAS financial statements in accordance with theStandards on Auditing (SAs) specified under

section 143(10) of the Act. Our responsibilitiesunder those Standards are further described inthe Auditor's Responsibilities for the Audit of theConsolidated Ind AS Financial Statementssection of our report. We are independent of theCompany in accordance with the Code of Ethicsissued by the Institute of Chartered Accountantsof India (ICAI) together with the independencerequirements that are relevant to our audit ofthe consolidated Ind AS financial statementsunder the provisions of the Act and the Rulesmade thereunder, and we have fulfilled our otherethical responsibilities in accordance with theserequirements and the ICAI's Code of Ethics. Webelieve that the audit evidence we have obtainedis sufficient and appropriate to provide a basisfor our qualified opinion.

Emphasis of Matter:

We draw attention to the following in the Notes to theconsolidated Ind AS financial statements:

1. In respect of Holding Company:

a) Note 26(a) to the Ind AS financial statements,regarding an amount of 13.12 crores ofaccrued interest upto 31.03.2019 accountedbased on relief given by CIT (A)-9 Hyderabadvide common order dt. 30.04.2019 for AY 2012-13 to AY 2014-15.

b) Note 26(c) to the Ind AS financial statements,regarding Insurance claim lodged amounting to 30.59 crores accounted based on the

recommendation of the surveyor.

c) Note 32A of the Ind AS financial statements,regarding write back of pension liabilities &Reversal of wages and salary aggregating to 225.40 crores.

2. In respect of Subsidiary Company:

a) In case of Subsidiary Company M/s EasternInvestment Limited, which has been audited byother auditor, Additional Commissioner of StampRevenue Govt of West Bengal had raised ademand in earlier years for 58.45 Lakhs, asregards transfer of shares from President ofIndia in The Orissa Minerals DevelopmentCompany Ltd (OMDC) and The Bisra Stone LimeCompany Ltd (BSLC) to Eastern Investments Ltd(EIL) to make BSLC and OMDC, subsidiaries of

134

'EIL'. However no provision has been taken inInd AS financial statements as at 31.03.2019.The Company contends that the said stamp dutyis not applicable on it as the transfer of sharesof 'BSLC' and 'OMDC' were by virtue ofRestructuring Scheme approved by the UnionCabinet and the said transfer of shares tookplace from the President of India without anyfinancial consideration. Hence due uncertaintyinvolved with case, we cannot comment on thefinancial impact on consolidated Ind AS financialstatements.

b) In respect of one of the subsidiary company ofM/s Eastern Investments Limited, The OrissaMinerals Development Company Ltd, which hasbeen audited by other auditor, reference isdrawn to the Judgement of Hon'ble SupremeCourt dated 02.08.2017, Dy. Director of Mines,Odisha had issued different demand noticesdated 02.09.2017, 23.10.2017 & 13.12.2017 toOMDC for OMDC Leases and to BPMEL forBPMEL Leases towards compensation againstexcess mining amounting to 1,56,375.58lacs.OMDC has paid the compensation of 55,266.60Lac towards OMDC leases ( 1479.68 Lacs on29.12.17, 13,093.47 Lacs on 16.11.18, 693.45 Lacs on 30.01.19 and 40,000 Lacs

on 01.03.19) and Provision for outstandingpayment with interest as on 31.03.2019 for 30,987.91 lacs has been made in the books of

accounts. The payment made by OMDC towardsBPMEL leases for 2,715.14 lac ( 2,515.14 lacon 29/12/17 and 200 lac on 16/11/18) has beentreated as advance in the books of accountssince the legal dispute with BPMEL is unsettledas on the date of finalization of accounts. Theremaining compensation towards BPMEL leaseswith interest as on 31.03.2019 of 1,06,798.16has been shown under contingent liability.

c) In respect of one of the subsidiary company ofM/s Eastern Investments Limited, The OrissaMinerals Development Company Ltd, which hasbeen audited by other auditor, The mine stockhas been assessed by a third party,Superintendence Co. Of India (P) Ltd. forqualitative and quantitative verification as on31.03.2019. The certificate of the said third partymentions in a note that for the old stack No.124which is located at Thakurani Iron Ore Mines,

was lying along the rail track at No.2 siding earlierand a platform along the rail track had beenprepared by SE Railway by using the mixed ironore of the same stack lying along the rail track.The stack could not be assessed as the iron orehas been mixed up with other waste within theplatform. Assessment can be done afterretrieving, screening and stacking of ore fromthe platform.

The total quantity in the same stake was18744.124 MT as per physical verification reportfor 2015-16. The identified stock in 2018-19 bythe third party is 1745.845 MT. Management hasconsidered the balance stock for valuation sincethe stock has lying under the platform and SERailway has issued circular dated 27/10/17 byvirtue of which the rights and powers to permitthe use of the Railway Siding for the traffic ofany person and to work such traffic over thissiding has been withdrawn.

d) In respect of one of the subsidiary company ofM/s Eastern Investments Limited, The OrissaMinerals Development Company Ltd, which hasbeen audited by other auditor, mining operationof the Company is continued to remainsuspended due to non-renewal of the leases andnon-receipt of requisite clearances from theGovernment of Odisha and the CentralGovernment. These conditions indicate theexistence of a material uncertainty to resumethe mining operations. These financialstatements have been prepared on a goingconcern basis mainly for the initiative taken bythe Company's management for opening of themines and resumption of mining operations.

Our opinion is not modified in respect of above matters.

Key Audit Matters

Key audit matters are those matters that, in ourprofessional judgment, were of most significance inour audit of the consolidated Ind AS financialstatements of the current period. These matters wereaddressed in the context of our audit of theconsolidated Ind AS financial statements as a whole,and in forming our opinion thereon, and we do notprovide a separate opinion on these matters. We havedetermined the matters described below to be the keyaudit matters to be communicated in our report.

135

In case of Subsidiary Company:- EasternInvestments Limited:

Receivable on maturity of Bond (Refer Note15 of the Consolidated Ind AS financialstatements)

The company has matured bond receivableamounting to 100 Lakhs. The said bond havealready been matured in 2017, however same isyet to be received.

In case of one of the Subsidiary Company ofEastern Investments Limited- 'The BisraStone Lime Company Limited'

Revenue Recognition

Revenue is the Company's key performancemeasure which give rise to a risk that revenue maybe misstated. In this regard revenue recognitionis one of the KAM

In case of one of the Subsidiary Company ofEastern Investments Limited- 'The BisraStone Lime Company Limited'

Statutory Compliances for keeping minesoperative

In Mining Industries there are several complianceswhich a company need to comply for keeping theiroperations active e.g. Wildlife Conservation,Scheme of Mining, Consent to Operate, MinesClosure Plan, Renewal of Lease etc.

In case of one of the Subsidiary Company ofEastern Investments Limited- 'The BisraStone Lime Company Limited'

Provision for disputed legal matters.

Our audit procedures performed included thefollowing:

l We have checked the steps taken by themanagement to recover the said bond amount.

Our Observation:

Based on the audit procedure performed weare satisfied that steps taken by themanagement to recover the bond amount isappropriate

Our Audit procedure included the following-

l We assessed the company's process to identifythe impact of the new revenue accountingstandard.

l Our audit approach has considered the time oftransfer of risk and reward of ownership tocustomer for revenue recognition.

l For major mineral sales we checked the MOU'smade between the customers and company.Minor mineral sales are made through e-Auctiononly.

Our Audit procedure included the following-

l We obtained from the management list ofcompliances to be complied for keeping theoperations of mines active.

l Expenditures like Wildlife Conservation, Schemeof Mining, Renewal of Lease, Mine Closure Planetc need to be amortised over a period. Weassessed that necessary provisions in this regardhave been made by the management.

Our Audit procedure included the following-l We obtained a list of legal matters pending

before different forum from the management.l We have asked management for new legal

cases arose during current financial year andlatest development in regard to old cases.

l We applied our knowledge to challenge theunderlying assumption of management for non-provisioning regarding disputed cases. We alsoconsidered legal precedence and other rulingsin evaluating the managements position onthese uncertainties.

Sr. Key Audit Matter (KAM) Auditor’s Response

No.

136

1

2

3

4

Information Other than the ConsolidatedFinancial Statements and Auditors ReportThereonThe Company's Board of Directors are responsible forthe preparation of other information. The otherinformation comprises the information included in theManagement Discussion and Analysis, Board's reportincluding Annexures to Board's Report, BusinessResponsibility Report, Corporate Governance andShareholders information, but doesn't include theconsolidated financial statements and our auditor'sreports thereon.

Our opinion on the consolidated financial statementsdoes not cover the other information and we do notexpress any form of assurance conclusion thereon.

In connection with our audit of the consolidated financialstatements, our responsibility is to read the otherinformation and, in doing so, consider whether theother information is materially inconsistent with theconsolidated financial statements or our knowledgeobtained during the course of our audit or otherwiseappears to be materially misstated.

If, based on the work we have performed, we concludethat there is a material misstatement of this otherinformation, we are required to report that fact. Wehave nothing to report in this regard.

Responsibilities of Management and ThoseCharged With Governance for the ConsolidatedInd AS Financial StatementThe Holding Company's Board of Directors isresponsible for the matters stated in section 134(5) ofthe Act with respect to the preparation of theseconsolidated Ind AS financial statements that give atrue and fair view of the consolidated financial position,consolidated financial performance, consolidated totalcomprehensive income, consolidated changes inequity and consolidated cash flows of the Group inaccordance with the Ind AS and other accountingprinciples generally accepted in India. The respectiveBoard of Directors of the companies included in theGroup are responsible for maintenance of theadequate accounting records in accordance with theprovisions of the Act for safeguarding the assets ofthe Group and for preventing and detecting frauds andother irregularities; selection and application ofappropriate accounting policies; making judgmentsand estimates that are reasonable and prudent; anddesign, implementation and maintenance of adequateinternal financial controls, that were operating effectivelyfor ensuring the accuracy and completeness of theaccounting records, relevant to the preparation andpresentation of the consolidated Ind AS financial

statements that give a true and fair view and are freefrom material misstatement, whether due to fraud orerror.

In preparing the consolidated financial statements, therespective Board of Directors of the companiesincluded in the Group and of its associates and jointlycontrolled entities are responsible for assessing theability of the Group and of its associates and jointlycontrolled entities to continue as a going concern,disclosing, as applicable, matters related to goingconcern and using the going concern basis ofaccounting unless management either intends toliquidate the Group or to cease operations, or has norealistic alternative but to do so.

The respective Board of Directors of the companiesincluded in the Group and of its associates and jointlycontrolled entities are responsible for overseeing thefinancial reporting process of the Group and of itsassociates and jointly controlled entities.

Auditor's Responsibilities for the Audit of theConsolidated Ind AS Financial StatementsOur objectives are to obtain reasonable assuranceabout whether the consolidated Ind AS financialstatements as a whole are free from materialmisstatement, whether due to fraud or error, and toissue an auditor's report that includes our opinion.Reasonable assurance is a high level of assurance,but is not a guarantee that an audit conducted inaccordance with SAs will always detect a materialmisstatement when it exists. Misstatements can arisefrom fraud or error and are considered material if,individually or in the aggregate, they could reasonablybe expected to influence the economic decisions ofusers taken on the basis of these consolidated Ind ASfinancial statements.

As part of an audit in accordance with SAs, we exerciseprofessional judgment and maintain professionalskepticism throughout the audit. We also:

l Identify and assess the risks of materialmisstatement of the consolidated Ind AS financialstatements, whether due to fraud or error, designand perform audit procedures responsive to thoserisks, and obtain audit evidence that is sufficientand appropriate to provide a basis for our opinion.The risk of not detecting a material misstatementresulting from fraud is higher than for one resultingfrom error, as fraud may involve collusion, forgery,intentional omissions, misrepresentations, or theoverride of internal control.

l Obtain an understanding of internal financialcontrols relevant to the audit in order to design auditprocedures that are appropriate in the

137

circumstances. Under section 143(3)(i) of the Act,we are also responsible for expressing our opinionon whether the Company has adequate internalfinancial controls system in place and the operatingeffectiveness of such controls.

l Evaluate the appropriateness of accounting policiesused and the reasonableness of accountingestimates and related disclosures made bymanagement.

l Conclude on the appropriateness of management'suse of the going concern basis of accounting and,based on the audit evidence obtained, whether amaterial uncertainty exists related to events orconditions that may cast significant doubt on theability of the Group and of its associates and jointlycontrolled entities to continue as a going concern.If we conclude that a material uncertainty exists,we are required to draw attention in our auditor'sreport to the related disclosures in the consolidatedInd AS financial statements or, if such disclosuresare inadequate, to modify our opinion. Ourconclusions are based on the audit evidenceobtained up to the date of our auditor's report.However, future events or conditions may causethe Group and of its associates and jointly controlledentities to cease to continue as a going concern.

l Evaluate the overall presentation, structure andcontent of the consolidated Ind AS financialstatements, including the disclosures, and whetherthe consolidated Ind AS financial statementsrepresent the underlying transactions and eventsin a manner that achieves fair presentation.

l Obtain sufficient appropriate audit evidenceregarding the financial information of the entitiesor business activities within the Group and of itsassociates and jointly controlled entities to expressan opinion on the consolidated financial statements.We are responsible for the direction, supervisionand performance of the audit of the financialstatements of such entities included in theconsolidated financial statements of which we arethe independent auditors. For the other entitiesincluded in the financial statements, which havebeen audited by other auditors, such other auditorsremain responsible for the direction, supervisionand performance of the audits carried out by them.We remain solely responsible for our audit opinion.

Materiality is the magnitude of misstatements in theconsolidated financial statements that, individually orin aggregate, makes it probable that the economicdecisions of a reasonably knowledgeableuser of thefinancial statements may be influenced. We consider

quantitative materiality factors in (i) planning the scopeof our audit work and in evaluating the results of ourwork; and (ii) to evaluate the effect of any identifiedmisstatements in the financial statements.

We communicate with those charged with governanceof the Holding Company and such other entitiesincluded in the consolidated financial statements ofwhich we are the independent auditors regarding,among other matters, the planned scope and timingof the audit and significant audit findings, including anysignificant deficiencies in internal control that weidentify during our audit.

We also provide those charged with governance with astatement that we have complied with relevant ethicalrequirements regarding independence, and tocommunicate with them all relationships and othermatters that may reasonably be thought to bear on ourindependence, and where applicable, related safeguards.

From the matters communicated with those chargedwith governance, we determine those matters that wereof most significance in the audit of the consolidatedfinancial statements of the current period and aretherefore the key audit matters. We describe thesematters in our auditor's report unless law or regulationprecludes public disclosure about the matter or when,in extremely rare circumstances, we determine that amatter should not be communicated in our reportbecause the adverse consequences of doing so wouldreasonably be expected to outweigh the public interestbenefits of such communication.

Other MatterWe did not audit the financial statements / financialinformation of subsidiary company of the holdingcompany namely M/s Eastern Investments Limited andits subsidiaries namely M/s. The Orissa MineralsDevelopment Company Limited, M/s. Borrea CoalCompany Limited & M/s The Bisra Stone LimeCompany Limited and its associate companies namelyM/s. The Karanpura Development Company Limited& M/s. The Burrakur Coal Company Limited andAssociate Company of holding company namely M/s.International Coal Ventures Private Limited and itssubsidiaries namely International Coal VenturesMauritius, ICVL Zambeze (Mauritius) Ltd, ICVLVentures (Mauritius), Promark Services Ltd, BengaPower Plant (Mauritius) Ltd, ICVL ZambezeLDA,(Mozambique)and joint venture of ICVL namely,Menas De Benga Mauritius Limited and its subsidiaryMenas De BengaLda (Mozambique) and other jointventure companies of holding company namely M/s.RINMOIL Ferro Alloys Pvt Ltd & M/s. RINL PowergridTLT Private Limited whose financial statements /

138

financial information reflect total assets of 719.72 Crores as at 31st March, 2019, total revenues

of 95.30 Crores, as considered in the consolidatedInd AS financial statements. The consolidated Ind ASfinancial statements also include the Group's share ofnet loss of 152.07 Crores for the year ended 31st

March, 2019, as considered in the consolidated IndAS financial statements.

These financial statements / financial information havebeen audited by other auditors whose reports havebeen furnished to us by the management and ouropinion on the consolidated Ind AS financialstatements, in so far as it relates to the amounts anddisclosures included in respect of these subsidiaries,jointly controlled entities and associates, and our reportin terms of sub-sections (3) and (11) of Section 143 ofthe Act, in so far as it relates to the aforesaidsubsidiaries, jointly controlled entities and associates,is based solely on the reports of the other auditors.

Our opinion on the consolidated Ind AS financialstatements, and our report on Other Legal andRegulatory Requirements below, is not modified inrespect of the above matters with respect to ourreliance on the work done and the reports of the otherauditors and the financial statements / financialinformation certified by the Management.

Report on Other Legal and RegulatoryRequirements1. As required by Section 143 (3) of the Act, we report that:

a. We have sought and obtained all the informationand explanations which to the best of ourknowledge and belief were necessary for thepurposes of our audit.

b. Except for matters described in "Basis of QualifiedOpinion" in the paragraph above, in our opinion,proper books of account as required by law havebeen kept by the company so far as it appears fromour examination of those books and proper returnsadequate for the purposes of our audit have beenreceived from the branches not visited by us.

c. The Consolidated Balance Sheet, the ConsolidatedStatement of Profit and Loss, and the ConsolidatedCash Flow Statement and Consolidated Statementof Changes in Equity dealt with by this Report are inagreement with the books of account and with thereturns received from the branches not visited by us.

d. In our opinion, the aforesaid Consolidated Ind ASfinancial statements comply with the AccountingStandards specified under Section 133 of the Act,read with Rule 7 of the Companies (Accounts)Rules, 2014.

e. The provisions of Section 164 (2) of the Act are notapplicable to the Government Companies videnotification No. G.S.R.463[E] dated 5th June, 2015of Ministry of Corporate Affairs.

f. With respect to the adequacy of the internal financialcontrols over financial reporting of the Companyand the operating effectiveness of such controls,refer to "Annexure A" to this report.

g. With respect to the other matters to be included inthe Auditor's Report in accordance with Rule 11 ofthe Companies (Audit and Auditors) Rules, 2014,in our opinion and to the best of our informationand according to the explanations given to us:

i. The consolidated Ind AS financial statementsdisclose the impact of pending litigations on theconsolidated financial position of the group asstated in Note No. 40 to the consolidated Ind ASfinancial statements.

ii. The Group did not have any long-term contractsincluding derivative contracts for which there wereany material foreseeable losses.

iii. There has been delay in transferring amounts,required to be transferred, to the Investor Educationand Protection Fund by the subsidiary companyincorporated in India.

2. As required by section 143(5) of the Act, we givein "Annexure - B", a statement on the mattersspecified by the Comptroller and Auditor Generalof India for the Group.

for M Bhaskara Rao & Co.,Chartered Accountants

Firm Registration Number: 000459S

V.RaghunandanPartner

Membership No: 026255UDIN No: 19026255AAAABJ9689

Place: VisakhapatnamDate: 19.08.2019

Unpaid/unclaimeddividend for 2010-11(EasternInvestments Ltd)

Unpaid/ unclaimedDividend for 2010-11(The OrissaMineralsDevelopmentCompany Ltd))

Instance of Delay In Due Date Actual DateLakhs for Transfer of Transfer

7.47 24.10.2018 15.01.2019

2.05 04.11.2018 05.12.2018

Sd/-

139

M. Bhaskara Rao & Co.Chartered Accountants

Annexure - A to the Independent Auditors' Report:

The Annexure referred to in our report to the membersof the Company for the year ended on 31st March 2019.We report that:

In conjunction with our audit of the consolidated IndAS financial statements of the Company as of and forthe year ended March 31, 2019, We have audited theInternal financial controls over financial reporting ofM/s Rashtriya Ispat Nigam Limited (hereinafter referredto as "the Holding Company") and its subsidiarycompanies, its associate companies and jointlycontrolled companies, that are companies incorporatedin India, as of that date. In respect of SubsidiaryCompanies of M/s International Coal Ventures Limitedare Companies incorporated outside India, hence thereporting on the adequacy of the internal financialcontrols over financial reporting in respect of thoseCompanies is not applicable and hence this report islimited to companies incorporated in India only.

Management's Responsibility for InternalFinancial Controls

The respective Board of Directors of the Holdingcompany, its subsidiary companies, its associatecompanies and jointly controlled companies, which arecompanies incorporated in India, are responsible forestablishing and maintaining internal financial controlsbased on the internal control over financial reportingcriteria established by the Company considering theessential components of internal control stated in theGuidance Note on Audit of Internal Financial ControlsOver Financial Reporting issued by the Institute ofChartered Accountants of India. These responsibilitiesinclude the design, implementation and maintenanceof adequate internal financial controls that wereoperating effectively for ensuring the orderly andefficient conduct of its business, including adherenceto company's policies, the safeguarding of its assets,

the prevention and detection of frauds and errors, theaccuracy and completeness of the accounting records,and the timely preparation of reliable financialinformation, as required under the Act.

Auditors' Responsibility

Our responsibility is to express an opinion on theCompany's internal financial controls over financialreporting based on our audit. We conducted our auditin accordance with the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting(the "Guidance Note") and the Standards on Auditing,issued by ICAI and deemed to be prescribed undersection 143(10) of the Companies Act, 2013, to theextent applicable to an audit of internal financialcontrols, both applicable to an audit of InternalFinancial Controls and, both issued by the Institute ofChartered Accountants of India. Those Standards andthe Guidance Note require that we comply with ethicalrequirements and plan and perform the audit to obtainreasonable assurance about whether adequateinternal financial controls over financial reporting wasestablished and maintained and if such controlsoperated effectively in all material respects.

Our audit involves performing procedures to obtainaudit evidence about the adequacy of the internalfinancial controls system over financial reporting andtheir operating effectiveness.

Our audit of internal financial controls over financialreporting included obtaining an understanding ofinternal financial controls over financial reporting,assessing the risk that a material weakness exists, andtesting and evaluating the design and operatingeffectiveness of internal control based on the assessedrisk. The procedures selected depend on the auditor'sjudgment, including the assessment of the risks ofmaterial misstatement of the Ind AS financialstatements, whether due to fraud or error.

140

We believe that the audit evidence we have obtainedis sufficient and appropriate to provide a basis for ouraudit opinion on the Company's internal financialcontrols system over financial reporting.

Meaning of Internal Financial Controls OverFinancial Reporting

A company's internal financial control over financialreporting is a process designed to provide reasonableassurance regarding the reliability of financial reportingand the preparation of Ind AS financial statements forexternal purposes in accordance with generallyaccepted accounting principles. A company's internalfinancial control over financial reporting includes thosepolicies and procedures that pertain to:

l The maintenance of records that, in reasonabledetail, accurately and fairly reflect the transactionsand dispositions of the assets of the company;

l Provide reasonable assurance that transactions arerecorded as necessary to permit preparation of IndAS financial statements in accordance withgenerally accepted accounting principles, and thatreceipts and expenditures of the company are beingmade only in accordance with authorisations ofmanagement and directors of the company; and

l Provide reasonable assurance regarding preventionor timely detection of unauthorised acquisition, use,or disposition of the company's assets that couldhave a material effect on the Ind AS financialstatements.

Inherent Limitations of Internal FinancialControls Over Financial Reporting

Because of the inherent limitations of internalfinancial controls over financial reporting, includingthe possibility of collusion or improper managementoverride of controls, material misstatements dueto error or fraud may occur and not be detected.Also, projections of any evaluation of the internalfinancial controls over financial reporting to futureperiods are subject to the risk that the internalfinancial control over financial reporting maybecome inadequate because of changes inconditions, or that the degree of compliance withthe policies or procedures may deteriorate.

Opinion

In our opinion, the Holding Company, its subsidiarycompanies jointly controlled companies and associatecompany have in all material respects, an adequateinternal financial controls system over financialreporting and such internal financial controls overfinancial reporting were operating effectively as atMarch 31, 2019, based on the internal control overfinancial reporting criteria established by the Companyconsidering the essential components of internalcontrol stated in the Guidance Note on Audit of InternalFinancial Controls Over Financial Reporting issued bythe Institute of Chartered Accountants of India.

Other Matters

Our aforesaid reports under Section 143(3)(i) of theAct on the adequacy and operating effectiveness ofthe internal financial controls over financial reportinginsofar as it relates to One (1) subsidiary company,and Two (2) jointly controlled companies and one (1)Associate company, which are companies incorporatedin India, is based on the corresponding reports of theauditors of such companies incorporated in India.

for M Bhaskara Rao & Co.,Chartered Accountants

Firm Registration Number: 000459S

Sd/-V.Raghunandan

PartnerMembership No: 026255

UDIN No: 19026255AAAABJ9689

Date: 19.08.2019Place: Visakhapatnam

141

Annexure B - to the independent Auditor's Report:

The Annexure referred to in our report to the members of the Holding Company for the year ended on 31 March2019. We report under section 143(5) of the Companies Act, 2013 as under:

M. Bhaskara Rao & Co.Chartered Accountants

As per existing practice, there are chances of someaforesaid transactions being missed to be accountedas the flow of accounting transactions are notautomated at the point of generation of transaction.The financial implications of transactions outside theIT system are unascertainable.THE BISRA STONE LIME COMPANY LIMITED:Yes, all the accounting transactions are accounted forthrough IT System. However, as explained to us, thereare operations/transactions which take place outsidethe system but have a bearing on the accounts of theCompany.For instance, the accounting transactions flowing fromthe EDP Department of the Company which maintainsdata for Payroll and Stores operations are notautomatically updated in the software where regularbooks of accounts are maintained. The sales invoicesare not issued from the same system in which booksof accounts are maintained. As per past practice, allsaid transaction are then manually entered in thesoftware which maintains regular books of account.As per existing practice, there are chances of someaforesaid transaction being missed to be accountedas the flow of accounting transactions are notautomated at the point of generation of transaction.The financial implications of transactions outside theIT system are unascertainable.INTERNATIONAL COAL VENTURES PRIVATELIMITED:The Company is maintaining its accounts in Tallyaccounting package where all ledgers, cash book, bankbook and trail balance is generated for finalization ofAccounts. As such, company is not using any IT systemlike SAP. Hence, there is nothing to be reported.RINMOIL FERRO ALLOYS PRIVATE LIMITED:The Company is maintaining accounting transactionsthrough Tally Software Package.RINL POWERGRID TLT PRIVATE LIMITED: Nil

DESCRIPTION:1. Whether the company has system in place to

process all the accounting transactionsthrough IT System? If yes, the implications ofprocessing of accounting transaction outsideIT system on the integrity of the accountsalong with the financial implication, if any maybe stated.

AUDITORS RESPONSE:RASHTRIYA ISPAT NIGAM LIMITED:SAP is the accounting software in place where allaccounting transactions are processed through ITsystem. Further we are informed that there are noaccounting transactions outside IT system.EASTERN INVESTMENTS LIMITED:Yes, all the accounting transactions are accounted forthrough IT System. However as explain to us, thereare operations/transactions which take place outsidesystem but have a bearing on the accounts of thecompany.As per past practice, all transactions are manuallyentered in the software which maintains regular booksof account.As per existing practice, there are chances of someaforesaid transactions being missed to be accountedas the flow of accounting transactions are notautomated at the point of generation of transaction.The financial implications of transactions outside theIT system are unascertainable.THE ORISSA MINERALS DEVELOPMENT COMPANYLIMITED:Yes, all the accounting transactions are accounted forthrough IT System. However as explain to us, thereare operations/transactions which take place outsidesystem but have a bearing on the accounts of thecompany.As per past practice, all transactions are manuallyentered in the software which maintains regular booksof account.

142

2. Whether there is any restructuring of anexisting loan or cases of waiver/write off ofdebt/loans/interest etc. made by a lender tothe company due to the company's inability torepay the loan? If yes, the financial impact maybe stated.

AUDITORS RESPONSE:

RASHTRIYA ISPAT NIGAM LIMITED:

Based on the records, information & explanations given

to us, there is no restructuring of an existing loan or

cases of waiver/write off of debt/loans/interest etc. made

by a lender to the company, during the year.

EASTERN INVESTMENTS LIMITED:

As explained to us and on the basis of information

available, there is no instance of Waivers/write off of

debts/interest of loan during the current financial year.

THE ORISSA MINERALS DEVELOPMENT COMPANYLIMITED:

As explained to us and on the basis of information

available, there is no instance of Waivers/write off of

debts/interest of loan during the current financial year.

THE BISRA STONE LIME COMPANY LIMITED:

As explained to us and on the basis of information

available, there is no instance of Waivers/write off of

debts/interest of loan during the current financial year.

INTERNATIONAL COAL VENTURES PRIVATELIMITED:

There are no cases of any restructuring of an existing

loan or cases of waiver/write off of debts/loans/interest

etc and hence there is nothing to be reported.

RINMOIL FERRO ALLOYS PRIVATE LIMITED:

No such Cases

RINL POWERGRID TLT PRIVATE LIMITED: Nil

3. Whether funds received/receivable for specific

schemes from central/state agencies were

properly accounted for/utilized as per its term and

conditions? List the cases of deviation.

AUDITORS RESPONSE:

RASHTRIYA ISPAT NIGAM LIMITED:

According to information given to us, funds received/

receivable for specific schemes from central/ state

agencies were properly accounted for/ utilized as per

its term and conditions.

There are no cases of deviation during the year.

EASTERN INVESTMENTS LIMITED:

As explained to us and on the basis of information

available, the company have not received any funds

from Central/State agencies.

THE ORISSA MINERALS DEVELOPMENT COMPANYLIMITED:

As explained to us and on the basis of information

available, the company have not received any funds

from Central/State agencies.

THE BISRA STONE LIME COMPANY LIMITED:

As explained to us and on the basis of information

available, the company have not received any funds

from Central/State agencies.

INTERNATIONAL COAL VENTURES PRIVATELIMITED:

No funds have been received/receivable for specific

schemes from central/state agencies and hence there

is nothing to be reported.

RINMOIL FERRO ALLOYS PRIVATE LIMITED:

No such Cases

RINL POWERGRID TLT PRIVATE LIMITED: Nil

for M Bhaskara Rao & Co.,Chartered Accountants

Firm Registration Number: 000459S

Sd/-V.Raghunandan

PartnerMembership No: 026255

UDIN No: 19026255AAAABJ9689Place: VisakhapatnamDate: 19.08.2019

143

144

145

CONSOLIDATED BALANCE SHEET AS AT 31st MARCH 2019 ( in Crores) Particulars Notes 31st March 2019 31st March 2018

I AssetsNon-current assets

(a) Property, plant and equipment 3 19030.18 16,789.55(b) Capital work-in-progress 3 3854.19 5,225.45(c ) Investment Property 4 0.07 0.07(d) Goodwill 5 149.49 149.49(e ) Other intangible assets 5 16.54 38.15(f) Intangible assets under development 5 - -(g) Equity Accounted Investees 41 563.41 539.88(h) Financial assets

(i) Investments 6 1.64 2.55 (ii) Loans 7 143.37 222.93 (iii) Other financial assets 8 26.32 36.45

(i) Deferred tax asset (net) 9 1357.60 775.49(j) Other non-current assets 10 85.90 120.37

Total non-current assets 25,228.71 23,900.40Current assets

(a) Inventories 11 7,517.73 5,657.98(b) Financial assets

(i) Investments 6 - -(ii) Trade receivables 12 1,133.50 999.16(iii) Cash and cash equivalents 13 476.17 879.28(iv) Loans 7 0.41 0.30(v) Other financial assets 8 545.07 493.88

(c ) Other tax assets (net) 14 65.28 65.26(d) Other current assets 15 883.18 684.89

Total current assets 10,621.35 8,780.75Total assets 35,850.06 32,681.14

II Equity and liabilitiesEquity

(a) Equity share capital 16 4,889.85 4,889.85(b) Other equity 17

(i) Reserves and surplus 17 A 2,342.83 2,363.74(ii) Other comprehensive income 17 B 83.25 30.68(i) Equity attributable to the owners of the company 7,315.93 7,284.27(ii) Non Controlling Interests 42 26.74 384.63Total equity 7,342.67 7,668.91LiabilitiesNon-current liabilities

(a) Financial liabilities(i) Borrowings 18 9,309.26 6,545.16(ii) Other financial liabilities 19 96.38 25.90

(b) Provisions 20 1,076.17 1,033.86(c ) Deferred tax liabilities (net) 9 - -(d) Other non-current liabilities 21 13.70 82.39

Total non-current liabilities 10,495.51 7,687.31Current liabilities

(a) Financial liabilities(i) Borrowings 18 9,844.03 9,261.41(ii) Trade payables 22 - Micro Enterprises and Small Enterprises 109.63 74.67 - Other than Micro Enterprises and Small Enterprises 1,586.20 1,153.29(iii) Other financial liabilities 19 5,096.79 5,569.35(iv) Derivatives 23 - 0.60

(b) Provisions 20 681.84 704.39(c ) Other tax liabilities 14 25.68 33.02(d) Other current liabilities 24 667.72 528.19

Total current liabilities 18,011.88 17,324.92Total liabilities 28,507.39 25,012.23Total Equity and liabilities 35,850.06 32,681.14

The notes 1 to 46 are an integral part of the financial statements.For and on behalf of the Board of Directors

Sd/-(P. K. Rath)

Chairman-cum-Managing Director

Sd/-(V.V. Venu Gopal Rao)

Director (Finance)and Chief Financial Officer

As per our report of even dateFor M/s M. Bhaskara Rao & Co

Chartered AccountantsFirm Regn No: 000459S

Sd/-(M Jagadeeshwara Rao)

Company Secretary

Sd/-(CA V. Raghunandan)

PartnerMembership No: 26255

Place : VisakhapatnamDate : 19-08-2019

146

CONSOLIDATED STATEMENT OF PROFIT AND LOSS FOR THE YEAR ENDED 31st MARCH 2019 ( in Crores) Particulars Notes For the year ended For the year ended

31st March 2019 31st March 2018Income

I Revenue from operations 25 20,568.85 14,687.93II Other income 26 347.38 268.56III Total income (I+II) 20,916.22 14,956.49IV Expenses

Cost of materials consumed 27 13,715.17 8,584.84Changes in inventory of finished goods and work-in-progress 28 (957.77) (191.67)Excise duty - 262.80Employee benefits expense 29 2,481.49 2,387.13Finance costs 30 1,282.83 940.27Depreciation and amortisation expense 31 1,072.77 793.48Other expenses 32 4,520.40 3,819.40Total expenses (IV) 22,114.89 16,596.24

V Profit/ (Loss) before exceptional items, share of profit/ (loss)of equity accounted investees and tax (III-IV) (1,198.66) (1,639.75)

VI Share of profit/ (loss) of equity accounted investees 41 (29.65) 5.50VII Profit/ (Loss) before exceptional items and tax (V+VI) (1,228.31) (1,634.25)VIII Exceptional items 32A (225.40) 541.05IX Profit/ (Loss) before tax (VII-VIII) (1,002.91) (2,175.30)X Tax expense/ (credit):

Current tax 0.13 0.85Deferred tax (590.16) (548.55)Earlier year adjustments - 0.21Total Tax expense/ (credit) (X) 9 (590.02) (547.49)

XI Profit/ (Loss) for the year from continuing operations (IX-X) (412.89) (1,627.82)XII Profit/ (Loss) for the year from discontinued operations - -XIII Tax expense of discontinued operations - -XIV Profit / (Loss) for the year from discontinued operations

(after tax) (XII-XIII) - -XV Profit/ (Loss) for the period (XI+XIV) (412.89) (1,627.82)XVI Other comprehensive income

(i) Items that will not be re classified to profit or loss (a) Re-measurements of defined benefit liability /asset 42.14 27.60

(b) Income tax relating to items that will not be reclassified to profit or loss (8.02) (6.90) (ii) Income tax relating to items that will not be reclassified to profit or loss

(a) Share of Other comprehensive income of equity accounted investees 52.57 0.99(b) Income tax relating to items that will be reclassified to profit or loss - -

Other comprehensive income for the year, net of income tax 86.69 21.69XVII Total comprehensive income for the year (XV+XVI) (326.19) (1,606.13)

Profit attributable to:(i) Owners of the company (55.40) (1,431.12)(ii) Non-controlling interests (357.49) (196.70)Profit for the year (412.89) (1,627.82)Other comprehensive income attributable to:(i) Owners of the company 87.06 21.40(ii) Non-controlling interests (0.36) 0.29Other comprehensive income for the year 86.69 21.69Total comprehensive income attributable to:(i) Owners of the company 31.66 (1,409.73)(ii) Non-controlling interests (357.85) (196.41)Total comprehensive income for the year (326.19) (1,606.13)

XVIII Earnings/ (loss) per each equity share of 10 each 371. Basic ( ) (0.11) (2.93)2. Diluted ( ) (0.11) (2.93)

The notes 1 to 46 are an integral part of the financial statements.For and on behalf of the Board of Directors

Sd/-(P. K. Rath)

Chairman-cum-Managing Director

Sd/-(V.V. Venu Gopal Rao)

Director (Finance)and Chief Financial Officer

As per our report of even dateFor M/s M. Bhaskara Rao & Co

Chartered AccountantsFirm Regn No: 000459S

Sd/-(M Jagadeeshwara Rao)

Company Secretary

Sd/-(CA V. Raghunandan)

PartnerMembership No: 26255

Place : VisakhapatnamDate : 19-08-2019

147

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148

CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31st MARCH 2019 ( in Crores)

Particulars For the year ended For the year ended31st March 2019 31st March 2018

Cash flows from operating activitiesProfit/ (loss) for the year (before tax) (1,002.91) (2,175.30)Adjustments for:Depreciation and amortisation expense 1,072.77 793.48Finance costs 1,282.83 940.27Share of (profit)/ loss of equity accounted investees 29.65 (5.50)Interest income from banks (0.30) (0.17)(Gain) loss on sale of Property, plant and equipment (0.99) (0.42)Unrealised Net (Gain)/ Loss arising on Financial instruments designated as FVTPL 0.00 0.60Operating profit before changes in assets and liabilities 1,381.05 (447.04)Changes in assets and liabilities :(Increase) decrease in inventories (1,859.74) (867.12)(Increase) decrease in trade receivables and loans (54.89) (111.05)(Increase) decrease in other financial assets (41.06) (35.38)(Increase) decrease in other non current assets 22.56 17.05(Increase) decrease in other current assets (178.53) (142.69)Increase (decrease) in trade payables 467.87 166.20Increase (decrease) in other financial liabilities (10.88) 949.56Increase (decrease) in provisions 61.91 611.48Increase (decrease) in non-current liabilities (68.69) 5.64Increase (decrease) in other current liabilities 139.53 (13.94)Cash generated from operating activities (140.87) 132.72Income tax paid (net of refund) (27.25) 75.08Net cash from (used in ) operating activities (A) (168.12) 207.80Cash flows from investing activitiesAcquisition of property, plant and equipment (1,718.58) (1,523.07)Proceeds from sale of property, plant and equipment 1.27 0.70Interest received from banks 0.30 0.17Investment in fixed deposits 471.46 (16.21)Acquisition of investments 0.30 2.81Net cash flow from (used in) investing activities (B) (1,245.24) (1,535.60)Cash flows from financing activitiesProceeds from (Repayment of ) long term borrowings 2,416.35 1,297.50Proceeds from (Repayment of) short term borrowings 582.62 1,212.57Interim Dividend paid (0.04) (0.73)Interest paid (1,517.21) (1,185.24)Net cash flow from (used in) financing activities ( C) 1,481.72 1,324.11Net increase (decrease) in cash and cash equivalents (A+B+C) 68.36 (3.69)Cash and cash equivalents at 1st April 41.94 45.64Cash and cash equivalents at 31st March 110.30 41.94Reconciliation of cash and cash equivalent as per the balance sheet 31st March 2019 31st March 2018Cash and cash equivalent as per the cash flow statement 110.30 41.94Other bank balances not considered above:- Bank deposits with maturity more than 3 months 333.95 822.01- Restricted Balances 31.93 15.33Cash and cash equivalent as per balance sheet 476.17 879.28The Cash flow statement has been prepared under indirect method in accordance with Ind AS 7.

The notes 1 to 46 are an integral part of the financial statements.For and on behalf of the Board of Directors

Sd/-(P. K. Rath)

Chairman-cum-Managing Director

Sd/-(V.V. Venu Gopal Rao)

Director (Finance)and Chief Financial Officer

As per our report of even dateFor M/s M. Bhaskara Rao & Co

Chartered AccountantsFirm Regn No: 000459S

Sd/-(M Jagadeeshwara Rao)

Company Secretary

Sd/-(CA V. Raghunandan)

PartnerMembership No: 26255

Place : VisakhapatnamDate : 19-08-2019

149

1 Company overviewRashtriya Ispat Nigam Limited is a companydomiciled in India. The Company’s registeredoffice is Administrative Building, VisakhapatnamSteel Plant (VSP), Visakhapatnam, AndhraPradesh. These consolidated financialstatements comprises of the Company and itssubsidiaries (referred to collectively as the‘Group’) and the Group’s interest in associatesand joint ventures. The Group is primarilyinvolved in the manufacture of steel and relatedproducts.

2 Significant accounting policies

2.1 Basis of PreparationThe consolidated financial statements havebeen prepared in accordance with IndianAccounting Standards (“Ind AS”) and provisionsof Companies Act, 2013 i.e.Section 133 of theCompanies Act,2013 as prescribed/notified andamended from time to time under the historicalcost convention on accrual basis except forcertain material financial instruments which aremeasured at fair value.

2.2 Functional and Presentation CurrencyThe consolidated financial statements arepresented in Indian rupees, which is thefunctional currency of the Group and thecurrency of the primary economic environmentin which the entity operates. All financialinformation presented in Indian rupees hasbeen rounded to the nearest two decimals ofCrore except share and per share data.

2.3 Use of Estimates and JudgmentThe preparation of consolidated financialstatements require estimates and assumptionsto be made that affect the reported amounts ofassets and liabilities and disclosure ofcontingent liabilities on the date of financialstatements and the reported amounts ofrevenues and expenses during the reportingperiod. Actual results could differ from theseestimates and differences between actualresults and estimates are recognized in theperiods in which the results are known/materialized.

2.4 Basis of consolidation

a. Business CombinationBusiness combinations (other than commoncontrol business combinations) on or after 1April 2014.As part of its transition to Ind AS, the Grouphas elected to apply the relevant Ind AS, viz.Ind AS 103, Business Combinations, to onlythose business combinations that occurred onor after 1 April 2014. In accordance with Ind AS103, the Group accounts for these businesscombinations using the acquisition methodwhen control is transferred to the Group. Theconsideration transferred for the businesscombination is generally measured at fair valueas at the date the control is acquired (acquisitiondate), as are the net identifiable assets acquired.Any goodwill that arises is tested annually forimpairment. Any gain on a bargain purchase isrecognized in OCI and accumulated in equityas capital reserve if there exists clear evidenceof the underlying reasons for classifying thebusiness combination as resulting in a bargainpurchase; otherwise the gain is recognizeddirectly in equity as capital reserve. Transactioncosts are expensed as incurred, except to theextent related to the issue of debt or equitysecurities.

The consideration transferred does not includeamounts related to the settlement of pre-existingrelationships with the acquiree. Such amountsare generally recognized in profit or loss.Any contingent consideration is measured at fairvalue at the date of acquisition. If an obligationto pay contingent consideration that meets thedefinition of a financial instrument is classifiedas equity, then it is not remeasuredsubsequently and settlement is accounted forwithin equity. Other contingent consideration isremeasured at fair value at each reporting dateand changes in the fair value of the contingentconsideration are recognized in profit or loss.If a business combination is achieved in stages,any previously held equity interest in theacquiree is re-measured at its acquisition date

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS AT 31st MARCH 2019

150

fair value and any resulting gain or loss isrecognised in profit or loss or OCI, asappropriate.Business combinations prior 1 April 2014In respect of such business combinations,goodwill represents the amount recognizedunder the Group’s previous accountingframework under Indian GAAP adjusted for thereclassification of certain intangibles.

b. Subsidiaries:RINL consolidates entities which it owns andcontrols. The financial statements ofsubsidiaries are included in the consolidatedfinancial statements from the date on whichcontrol commences until the date on whichcontrol ceases.

c. Non-controlling interestNCI are measured at their proportionate shareof the acquiree’s net identifiable assets at thedate of acquisition.

d. Loss of controlWhen the Group loses control over a subsidiary,it derecognizes the assets and liabilities of thesubsidiary, and any related NCI and othercomponents of equity. Any interest retained inthe former subsidiary is measured at fair valueat the date the control is lost. Any resulting gainor loss is recognized in profit or loss.

e. Equity accounted investeesThe Group’s interest in equity accountedinvestees comprises interests in associates andjoint ventures. Interests in associates and jointventures are accounted for using the equitymethod. They are initially recognized at costwhich includes transaction costs. Subsequentto initial recognition, the consolidated financialstatements include the Group’s share of profitor loss and OCI of equity accounted investeesuntil the date on which significant influence orjoint control ceases.

f. Transactions eliminated on consolidationIntra-group balances and transactions, and anyunrealized income and expenses arising fromintra-group transactions, are eliminated.Unrealized gains arising from transactions withequity accounted investees are eliminated

against the investment to the extent of theGroup’s interest in the investee. Unrealizedlosses are eliminated in the same way asunrealized gains, but only to the extent thatthere is no evidence of impairment.

2.5 Inventories

2.5.1 Inventories are valued at lower of cost and netrealizable value.

2.5.2 The basis of determining cost is:

a) Finished / Semi-finished goods, Raw materials – Periodic Weighted Average cost.

b) Minor Raw materials, Stores and spares (which do not meet PPE definition), Loose

tools - Dynamic Moving Weighted Average cost.

c) All Materials in- transit at cost.

2.5.3 Necessary provisions are made for obsolete /Surplus / Non-moving inventory.

2.6 Property, Plant and Equipment (PPE)

2.6.1

(a) The Group has adopted the previous GAAPvalue as the ‘deemed cost’ in preparing itsopening balance sheet as on 01 April 2015.

(b) Property, plant and equipment are measuredat cost less accumulated depreciation andimpairment losses.

2.6.2 The cost of property, plant and equipmentcomprises:

(i) Its purchase price;

(ii) Any cost directly attributable to bringing theasset to the location and condition necessaryfor it to be capable of operating in the mannerintended by management;

(iii) The initial estimate of the costs of dismantlingand removing the item and restoring the siteon which it is located, the obligation for whichthe Group incurs either at the time of acquisitionof asset or as a consequence of having usedthe asset during a particular period for purposesother than to produce inventory during thatperiod;

(iv) Expenditure attributable /relating to constructionto the extent directly identifiable to any specificplant unit, Trial run expenditure net of revenue.

151

2.6.3 The cost of replacing a part of an item of PPE isrecognized in the carrying amount of the itemof property, plant and equipment if therecognition criteria are met. Consequently, thecarrying amount of the replaced part isderecognized.

2.6.4 Expenditure attributable /relating to constructionto the extent not directly identifiable to anyspecific Plant Unit is kept under ‘ExpenditureDuring Construction’ for allocation to PPE andis grouped under ‘Capital Work-in- Progress’.

2.6.5 All major spares, stand-by equipment, andservicing equipment that meet the criteria ofproperty, plant and equipment are capitalized.

2.6.6 Depreciation:Depreciation is recognized on straight-line basisover the estimated useful life of each part of anitem of property, plant and equipment.Depreciation methods, useful lives and residualvalues are reviewed at each reporting date andwhere expectations differ from previousestimates, the changes are accounted for aschange in accounting estimate.

2.7 Intangible Assets

2.7.1 Intangible assets are estimated at cost lessaccumulated amortization and impairment.Intangible assets are amortized on straight linemethod over their estimated useful life.

2.7.2 Residual values and useful lives of all intangibleassets are reviewed at each reporting date.Changes, if any, are accounted for as changesin accounting estimates.

2.7.3 Goodwill that arises on business combinationis not amortised and tested for impairmentannually. Subsequently measured at cost lessaccumulated impairment loss.

2.8 Exploration and Evaluation Assets (E&EAssets)

2.8.1 Exploration and evaluation expenditurecomprises costs incurred after obtaining legalright to explore the area and before establishingtechnical feasibility and commercial viability ofextracting a mineral resource that are directlyattributable to:

– researching and analyzing existingexploration data;– conducting geological studies, exploratorydrilling and sampling;– examining and testing extraction and treatmentmethods; and/or– compiling pre-feasibility and feasibility studies.

2.8.2 Exploration and evaluation expenditure isrecognized as an expense, unless theexpenditure is expected to be recouped throughsuccessful development and exploitation of thearea of interest, or alternatively by its sale, inwhich case it is recognized as an asset.

2.8.3 Exploration and evaluation assets are classifiedas tangible (as part of property, plant andequipment) or intangible according to the natureof the assets. These assets are not depreciatedtill they are recognized as an E &E asset. Theseassets continue in CWIP and are depreciatedonce they are recognized as E&E assets.

2.8.4 The carrying values of capitalized evaluationexpenditure are reviewed for impairment oncea year by management.

2.9 Investment in Subsidiaries and JointVentures

Investments in subsidiaries and joint venturesare measured at cost. Diminution in value, otherthan temporary, is provided for.

2.10 Financial Instruments (Financial Assets andFinancial Liabilities):All financial instruments are recognized initiallyat fair value. The classification of financialinstruments depends on the objective of thebusiness model for which it is held. For thepurpose of subsequent measurement, financialinstruments of the Group are classified into (a)Non-Derivative Financial Instruments and (b)Derivative Financial Instruments.

a) Non Derivative Financial Instruments

(i) Security deposits, cash and cash equivalents,employee and other advances, tradereceivables and eligible current and non-currentfinancial assets are classified as Financialassets under this clause.

(ii) Loans and borrowings, trade and other

152

payables including deposits collected fromvarious parties and eligible current and non-current financial liabilities are classified asfinancial liabilities under this clause.

(iii) Financial instruments are subsequently carriedat amortized cost wherever applicable usingeffective interest method (EIR) less impairmentloss.

(iv) Transaction costs that are attributable to thefinancial instruments recognized at amortizedcost are included in the fair value of suchinstruments.

(b) Derivative Financial Instruments

(i) Derivative Financial Assets and liabilities areinitially recognized at fair value on the date aderivative contract is entered into and aresubsequently re-measured to their fair value ateach reporting date.

(ii) Changes in the fair value of any derivative Assetor liability are recognized immediately in theIncome Statement and are included in otherincome or expenses.

(iii) Cash flow hedge: Changes in the fair value ofthe derivative hedging instrument designatedas a cash flow hedge are recognized in othercomprehensive income and presented withinequity in the cash flow hedging reserve to theextent that the hedge is effective. To the extentthat the hedge is ineffective, changes in fairvalue are recognized in the statement of profitand loss. If the hedging instrument no longermeets the criteria for hedge accounting, expiresor is sold, terminated or exercised, then hedgeaccounting is discontinued prospectively. Thecumulative gain or loss previously recognizedin the cash flow hedging reserve is transferredto the statement of profit and loss upon theoccurrence of the related forecastedtransaction.

2.11 Impairment

2.11.1 Financial assets

(i) The Group applies Expected Credit Loss (ECL)model for measurement and recognition ofimpairment loss on the following financial assets

and credit risk exposure:l Financial assets that are debt instruments, andare measured at amortized cost whereverapplicable e.g., loans, debt securities, deposits,and bank balance.l Trade receivables.

(ii) The Group follows ‘simplified approach’ forrecognition of impairment loss allowance ontrade receivables which do not contain asignificant financing component. Theapplication of simplified approach does notrequire the company to track changes in creditrisk. Rather, it recognizes impairment lossallowance based on lifetime ECLs at eachreporting date, right from its initial recognition.

2.11.2 Non-financial assetsThe Group assesses at each reporting datewhether there is any objective evidence that anon-financial asset or a group of non-financialassets is impaired. If any such indication exists,the Group estimates the amount of impairmentloss.

2.12 Stripping Cost:Stripping cost in the nature of expense incurredfor removing overburden and waste materialsis accounted for as follows:

(a) To the extent that the benefit from the strippingactivity is realized in the form of inventoryproduced, the same is accounted for inaccordance with the principles of Ind AS 2,Inventories.

(b) To the extent the benefit is improved access toore, stripping cost shall be recognized as a non-current asset.

2.13 Income Taxes:Income tax expense comprises of current anddeferred tax. Income tax expense is recognizedin the statement of profit and loss except to theextent it relates to items directly recognized inequity or in other comprehensive income.

2.14 Revenue Recognition

2.14.1Revenue is recognized at fair value whensignificant risks and rewards of ownership andeffective control on goods have beentransferred to the buyer. Sales revenue is

153

measured net of returns, discounts and rebates.

2.14.2 Claims against outside agencies are accounted

for on certainty of realization.

2.14.3 Revenue arising from the rendering of service

is recognized to the extent the service is

provided and could be estimated reliably.

2.14.4 Interest income is recognized basing on the

effective interest method.

2.14.5 Dividends are recognized at the time the right

to receive is established.

2.14.6 Export Incentives are recognized on certainty

of realization.

2.15 Employee Benefits

Provisions/Liabilities towards gratuity, post-

retirement medical benefits, retirement

settlement benefits, Employees’ Family Benefit

Scheme, encashment of leave and long term

service award are made based on the actuarial

valuation at the reporting date.

(i) Consequential actuarial gain\loss are charged

to Statement of Profit and Loss;

(ii) Actuarial gain/loss relating to Post Retirement

Benefits (Defined Benefit Plan) are recognized

in other comprehensive income.

2.16 Foreign Currency Transactions

2.16.1Foreign currency monetary items are disclosed

at the closing rate of the reporting period at

reporting date. Exchange differences arising on

settlement/conversion of foreign currency

monetary items are recognized in the statement

of profit and loss account.

2.16.2Non-monetary assets and liabilities are

recognized at the exchange rate prevailing at

the date of transaction.

2.17 Borrowing Costs

2.17.1 Borrowing costs incurred for obtaining

qualifying assets are capitalized 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.

2.17.2 Transaction costs in respect of long-term

borrowings are amortized over the tenor of

respective loans using effective interest

method.

2.17.3 Other borrowing costs are treated as expense

for the year.

2.18 Investment Property

Investment properties are properties held to

earn rentals and/ or for capital appreciation

(including property under construction for such

purposes). Investment properties are measured

initially at cost, including transaction costs.

Subsequent to initial recognition, investment

properties are measured in accordance with Ind

AS 16’s requirements for cost model, other than

those that meet the criteria to be classified as

held for sale (or are included in a disposal group

that is classified as held for sale) in accordance

with Ind AS 105.

An investment property is derecognized upon

disposal or when the investment property is

permanently withdrawn from use and no future

economic benefits are expected from the

disposal. Any gain or loss arising on

derecognition of the property (calculated as the

difference between the net disposal proceeds

and the carrying amount of the asset) is included

in profit or loss in the period in which the

property is derecognized.

154

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19.5

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960

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0.90

149.

1014

5.76

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80.

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1.60

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21.9

518

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548.

9237

3.55

202.

8910

271.

16

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0.99

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6016

1.66

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3080

22.8

921

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ance

at 3

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201

91.

1018

0.75

175.

5279

7.43

8842

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22.9

721

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615.

5841

5.24

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4211

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28

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ts (n

et)

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201

860

.04

2.77

160.

3199

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2314

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2013

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383.

1057

6.83

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55

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201

960

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2.66

180.

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9.29

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155

B. Land held under finance leases

The Group has acquired land at Mumbai under finance lease agreements. The leased land secures relatedlease obligations. The gross and net carrying amounts of land acquired under finance leases and included inabove are as follows:

( in Crores)

Particulars 31st March 2019 31st March 2018

Cost or deemed cost 3.76 3.76

Accumulated depreciation (1.10) (0.99)

Net carrying amount 2.66 2.77

C. Freehold landIn case of Holding Co:

- Land includes 363.28 acres (31st March 2018 363.28 acres) allotted to various agencies on lease basis.- Land at a cost of 39.99 crore (31st March 2018 : 39.99 crore) is being held in the name of President of India. The Holding Company is holding Power of Attorney issued by Government of India for utilisation of the land acquired for the project and related purposes incidental thereto.- Land includes 14.5 acres whose title is under dispute.- Land measuring 62.05 acres (Private Land : Makavaram: 19.78, Maturu: 20.45 and Rebaka: 6 and State Land; Makavaram: 13.86, Maturu: 1.96) acquired for RINL is not free from encumbrance and physical possession is yet to be taken.

In case of Subsidiary OMDC:- Unauthorised occupation of some of the quarters has been made by contractor's employees in mines. Company is considering taking necessary action including legal course wherever necessary to take the ownership of the quarters.

D. Sale deed in respect of the following land has not yet been executed( in Crores)

Particulars 31st March 2019 31st March 2018

Stockyard at Chennai 2.37 2.37

Office building at New Delhi 25.53 25.53

Office buildings at Ahmedabad 0.18 0.18

Residential buildings at Kolkata 0.95 0.95

Site for Liaison Office at Hyderabad 1.30 1.30

30.33 30.33

-In case of Subsidiary OMDC: The registration of the Building of the Company at H.O. is yet to be completed. Theprovision of 0.51 Crore has been made for registration of building. However, if further provision is required to be made, atthe time of registration, the same will be made in future.

156

E. In case of EIL

(i) LandThe Lawrence Investments and Property Co. Ltd.had a landed property of 76.77 Acres of land atChackasi, Bauria, Howrah, housing its Jute Mills(demolished and disposed of in 1980). TheGovernment of West Bengal had acquired landmeasuring an approximate area of 27.58 Acres on25.08.76. Company’s appeal for award ofcompensation towards such acquisition has beenupheld by District Judge, Howrah on 07.03.83. Noeffect of such acquisition has been given in thebooks of account.Another notice for acquisition of the balance portionof land in terms of a notice received under UrbanLand (Ceiling & Regulation) Act, has also beencontested by the company. This portion of the landhowever is under unauthorized occupation of localinhabitants which includes construction ofpermanent nature as well. Necessary legal stepshave already been initiated together with lodgmentof complaint with the concerned police station foreviction of unauthorized occupants

(ii) Block and Development Sonepore PropertyThe Assets described in the Schedule Note No.6to the Accounts under the heading 'Block andDevelopment' known as Sonepore propertybelonging to the Ondal Investments Co. Ltd. werethe subject matter of a sub-lease between themand Sonepore Coalfields Ltd. which the companytook possession of the property in 1946. The sub-lease agreement could not be completed due toimplications involved under the MineralConcession Rules in 1960. The said companyserved re-entry notice on the sub-lessees and onobtaining permission from the Coal Board tookpossession of the property and started prospectingoperation for which purpose the sum of 0.72 lacswas spent. The Company's re-entry notice waschallenged by the Sonepore Coalfields Ltd. and inJanuary, 1966 after hearing both the parties theCalcutta High Court held that the sub-lessees werethe 'owners' of the property and re-entry

permission granted by the Coal Board should bequashed. The said company preferred an appealbut the same was decided against them in 1970and the matter was forwarded by the Court to theCoal Board for fresh decision. No development hastaken place since then. Amount of 2.56 lacs wasalso received from Business DevelopmentCorporation Ltd. in the year 1946 on account ofsub-lease of the Moujas 'Hassadih', 'Jote KhanKhan', 'Nabagram' & 'Sonepore', pendingfinalization of the sale deed and the final outcomeof the re-entry case, this amount has been keptunder Current Liabilities'. 'Development'represents' the expenditure incurred towards thedevelopment of a property, the possession of whichis under dispute.

iii) BuildingsThe Building belonging to the Sendra InvestmentsCo. have been taken over in January, 1973, bythe Coal Mines Authority in terms of Coal Mines(Nationalisation) Act, 1973. A claim forcompensation for take-over has been made. Noadjustment has been made pending determinationof the claim.

(iv) Railway SidingThe Railway Siding known as 'Chora MangalporeSiding' belonging to Ondal Investments Co. Ltd.stretches over approximately three miles taking offfrom Sonachora Station lying between Ondal andGarandih. Following the nationalization of Non-Coking Coal Collieries in 1973. all the collieriesaround the siding has been taken over by the CoalMines Authority though the ownership of the Sidingrests with the said company.

(v) DepreciationDepreciation on Block and Development- OndalProperty, Development - Ondal Property, Building- Sendra Property have neither been ascertainednor provided for.

157

Particulars 31st March 2019 31st March 2018

Railway lines and sidings 10-15 years 10-15 years

Roads, bridges and culverts 3-30 years 3-30 years

Buildings 5-60 years 5-60 years

Plant and equipment 2-40 years 2-40 years

Fixtures and fittings 10 years 10 years

Vehicles 6-8 years 6-8 years

Electrical installations 10-25 years 10 years

Water supply and sewerage systems 5-30 years 5-15 years

Miscellaneous assets 3-15 years 3-15 years

( in Crores)

Particulars 31st March 2019 31st March 2018

Allocation of depreciation :

Expenditure During Construction 6.76 38.05

Current year (Charged to P & L) 1,049.41 764.75

1,056.17 802.80

Depreciation methods, useful lives and residual values are reviewed at each financial year-end and adjusted ifappropriate.

G. Capital Work - in - Progress

F. Depreciation methods and useful lives

Depreciation is recognized in profit or loss on a straight-line basis over the estimated useful lives of each part of an item

of property, plant and equipment. The estimated useful lives for the current and comparative periods are as follows:

158

( in Crores)

Particulars 31st March 2019 31st March 2018

Capital work-in-progress (including material issued to contractors) 3,875.38 4,949.69

Less: Provision for dropped SLTM project & others 20.44 19.84

Less: Impairment loss on capital work-in-progress

recognised in profit and loss 0.75 0.75

3,854.19 4,929.09

Expenditure during construction awaiting allocation (Note H) - 296.36

Total 3,854.19 5,225.45

H. Expenditure during construction awaiting allocation ( in Crores)

Particulars 31st March 2019 31st March 2018

Opening Balance (A) 296.36 442.89Expenditure during the year:Employee remuneration and benefits (8.85) 64.29Other expenses and provisions - 28.52Interest expense - 7.88Depreciation 5.31 38.05Less :Other revenue - 0.01Net expenditure during the year (B) (3.54) 138.73Total (A+B) 292.82 581.62Less: Amount allocated to PPE 292.82 285.26Total - 296.36

Investment property held by Subsidiary,The Bisra Stone Lime Company Limited have the following :-

- Under Indian GAAP this investment property had been classified Under the building block of tangible asset.

- The building which is in the name of the BSLC, is let out to one of the subsidiary in lieu of rent. BSLC is not using the building for its business purpose and neither intends to sell it in near future.- The investment property represents the carrying amount as per previous GAAP of the guest house given on rent to The Orissa Minerals Development Company Limited, a related party, there has not been anyfair valuation of such investment property has been carried out during the year by any independentvaluation expert. Therefore, the disclosure relating to fair value of investment property is not required.

4 Investment property

Reconciliation of carrying amount

159

( in Crores)

Particulars Investment property

Cost or deemed cost (gross carrying amount)Balance at 1st April 2017 0.08

Additions and adjustments -

Balance at 31st March 2018 0.08Balance at 1st April 2018 0.08

Additions and adjustments -

Balance at 31st March 2019 0.08Accumulated depreciationBalance at 1st April 2017 0.00

Depreciation for the year 0.00

Balance at 31st March 2018 0.00Balance at 1st April 2018 0.00

Depreciation for the year 0.00

Balance at 31st March 2019 0.01Carrying amountsAt 31st March 2018 0.07At 31st March 2019 0.07

5 Intangible assetsA. Reconciliation of carrying amount ( in Crores)

Computersoftware

(i)

Miningrights

(ii)

Total

[(i)+(ii)]

Intangibleassets underdevelopment

(iii)

Total

[(i)+(ii)+(iii)]

Goodwill

Net

Blo

ck

Acc

um

ula

ted

Dep

reci

atio

n

Gro

ss B

lock

With respect to the carrying amount of intangible asset held by The Bisra Stone Lime Company Limited:-- Expenditure incurred for obtaining required clearance to operate the mines subsequent to the allotment of their lease is capitalized as intangible assets.

With respect to the carrying amount of intangible asset held by The Orissa Minerals Development Company Limited:-- Prospecting and development expenses incurred to prepare the mines ready for commercial exploration (i.e. in the nature of preliminary and preoperative expenses) are capitalized.- Expenditure incurred for obtaining required clearance to operate the mines subsequent to the allotment of their lease is capitalized as intangible assets under the heads mining rights on deemed extension basis. Intangible Assets has been ammortised taking the validity of mining lease upto 31.03.2020 as per MMDR Amendment Act, 2015.

B. Amortisation methods and useful lives

Amortisation is recognized in profit or loss on a straight-line basis over the estimated useful lives of each part of an item ofintangible assets. “The estimated useful lives for the current and comparative periods are as follows:

Cost or deemed cost(gross carrying amount)

Balance at 1st April 2017 149.49 66.45 54.61 121.06 - 121.06

Additions and adjustments - 0.18 0.23 0.41 - 0.41

Sales and adjustments - (0.04) - (0.04) - (0.04)

Balance at 31st March 2018 149.49 66.59 54.84 121.43 - 121.43

Balance at 1st April 2018 149.49 66.59 54.84 121.43 - 121.43

Additions and adjustments - 1.75 - 1.75 - 1.75

Sales and adjustments - 0.00 - 0.00 - 0.00

Balance at 31st March 2019 149.49 68.34 54.84 123.18 - 123.18

Accumulated amortisation

Balance at 1st April 2017 - 42.16 12.43 54.59 - 54.59

Amortisation for the year - 14.63 14.10 28.73 - 28.73

Sales and adjustments - (0.04) - (0.04) - (0.04)

Balance at 31st March 2018 - 56.75 26.53 83.28 - 83.28

Balance at 1st April 2018 - 56.75 26.53 83.28 - 83.28

Amortisation for the year - 9.25 14.11 23.36 - 23.36

Sales and adjustments - 0.00 - 0.00 - 0.00

Balance at 31st March 2019 - 66.00 40.64 106.64 - 106.64

Carrying amounts (net)

At 31st March 2018 / 1stApril 2018 149.49 9.84 28.31 38.15 - 38.15

At 31st March 2019 149.49 2.34 14.20 16.54 - 16.54

Particulars

Particulars 31st March 2019 31st March 2018

Computer Software 4 years 4 years

Mining Rights 20 years 20 years

160

Particulars 31st March 2019 31st March 2018

A. Non-current investments

Equity shares at cost - others

2,280 (31st March 2019: 2,280; 31st March 2018: 2,280) equity

shares of 1 each in Free Press House Limited* - -

1 (31st March 2019: 1; 31st March 2018: 1 ) equity shares of

100 each in Anakapalli Rural Elec. Co-operative Society* - -

84,640 equity shares of 1 each in The Borrea Coal Company

Limited (In Liquidation)** 0.07 0.07

Aggregate amount of impairment in value of investments (0.07) (0.07)

Total - -

B. Other investments

(i) Quoted investments

a) Investments in equity instruments (all fully paid)

Titagarh Wagon Limited (Formarly Titagarh Industries Limited)***

(March 31, 2019 and March 31, 2018 615 shares of 10 each) 0.17 0.17

I.T.C. Limited (Ordinary Shares of 1 each) (March 31, 2019

and March 31, 2018 15,000 shares of 10 each) 0.67 0.57

DPSC Ltd (Formally Dishergarh Power Supply Co. Ltd.)

(March 31, 2019 and March 31, 2018: 344,770 shares of 10 each) 0.46 0.94

Steel Authority of India Limited“ (March 31, 2019 and March 31,

2018: 1000 shares of 10 each) 0.01 0.01

Reliance Industries Limited $ (March 31, 2019 and March 31,

2018: 86 shares of 10 each) 0.02 0.02

Bharat Earth Movers Limited (March 31, 2019 and March 31,

2018: 200 shares of 10 each) 0.02 0.03

The Associated Cement Company Limited. (March 31, 2019

and March 31, 2018: 400 shares of 10 each) 0.07 0.06

J S W Limited (formerly, Jindal Vijaynagar Steel) (March 31, 2019

and March 31, 2018: 30 shares of 10 each) 0.00 0.00

Ispat Profiles Limited ***(March 31, 2019 and March 31,

2018: 500 shares of 10 each) 0.00 0.00

H.D.F. C. Bank (March 31, 2019 and March 31,

2018: 1,500 shares of 10 each) 0.35 0.28

Total - quoted investments in equity instruments (a) 1.76 2.07

6 Investments( in Crores)

161

( in Crores)

b) Investments in mutual funds

Master Share - Unit Trust of India (March 31, 2019 and March 31,

2018: 2,800 units of 10 each) 0.01 0.01

Capital Growth Unit Scheme 1992 (Master Gain 1992)(March 31,

2019 and March 31, 2018: 3,000 unit of 10 each) 0.04 0.04

Total - quoted investments in mutual funds (b) 0.05 0.05

(ii) Unquoted investments

a) Investments in equity instruments (all fully paid)

The Burrakur Coal Company Limited (In Liquidation) ***(March 31,

2019 and March 31, 2018: 475,300 shares of 10 each) 0.41 0.41

The Kinnison Jute Mills Company Limited ***

(March 31, 2019 and March 31, 2018: 25,645 shares of 100 each) 0.27 0.27

Union Jute Company Limited ***(March 31, 2019 and March 31,

2018: 18,028 shares of 100 each) 0.25 0.25

Kumardhubi Fireclay & Silica Works Limited ***

(March 31, 2019 and March 31, 2018: 146,764 shares of 10 each) 0.20 0.20

Eastern News Paper (Formaly Chora Investment Co. Ltd.)

(March 31, 2019 and March 31, 2018: 83 shares of 10 each) 0.00 0.00

Holman Climax Manufacturing Limited ***(March 31, 2019

and March 31, 2018: 123,598 shares of 10 each) 0.10 0.10

The Karanpura Development Company Limited ***

(March 31, 2019 and March 31, 2018: 79,850 shares of 10 each) 0.06 0.06

Birds Jute & Exports Limited *** (March 31, 2019 and March 31,

2018: 4,650 shares of 100 each) 0.05 0.05

Sijua (Jherriah) Electric Supply Company Limited ***

(March 31, 2019 and March 31, 2018: 73,232 shares of 10 each) 0.05 0.05

Woodland Multispeciality Hospital Limited (March 31, 2019

and March 31, 2018: 1950 shares of 10 each) 0.00 0.00

Sri Aurobindra Sahayog Samity Limited (March 31, 2019

and March 31, 2018: 1 share of 100 each fully paid up) - -

Kalinga Cement Limited *** (March 31, 2019 and March 31,

2018: 6000 shares of 100 each fully paid up) 0.00 0.00

2,811,010 equity shares of 10 each in East India Minerals Limited # 2.81 2.81

Total un-quoted investments in equity shares (a) 4.20 4.20

b) Investments in preference shares7% Birds Jute & Exports Limited ***(March 31, 2019 and March 31,2018: 263 shares of 100 each fully paid up) 0.00 0.00

5.5% Kumardhubi Fireclay & Silica Works Limited (2nd Preference)***

Particulars 31st March 2019 31st March 2018

162

( in Crores)

Particulars 31st March 2019 31st March 2018

(March 31, 2019 and March 31, 2018: 1,260 shares of 100 each fully paid up) 0.01 0.01

9.5% Kumardhubi Engineering Works Limited ***(March 31, 2019

and March 31, 2018: 50 shares of 100 each fully paid up) 0.00 0.00

Total un-quoted investments in preference shares (b) 0.01 0.01

c) Investments in debentures

8% Kumardhubi Engineering Works Limited ***(March 31, 2019

and March 31, 2018: 58 units of 500 each) 0.00 0.00

Total un-quoted investments in debentures (c) 0.00 0.00Advance for investment in equity shares of International

Coal Ventures Private Limited - -

Advance for investment in equity shares of RINL Powergrid TLT Private Limited - 0.60

Aggregate amount of quoted investments and market value thereof 1.81 2.12

Aggregate amount of unquoted investments 4.21 4.81

Aggregate amount of impairment in value of investments (4.38) (4.38)

Total other investments ( B) 1.64 2.55Total non-current investments [(A)+(B)] 1.64 2.55C.Current investmentsi) Quoted investmentsa) Investments in government securities8.85% IDBI OMNI Bonds - -

7.7% IDBI R. I. Omni Bond-II - -

9.05% Hudco 2016 Bonds - -

7.61% State Development Loan (SDL) 2016 - -

Total current investments (C ) - -Total Other investments ( B)C. Provision for diminution in value of investments - -

Total Investments (A+B-C) 1.64 2.55Aggregate book value of quoted investments - -

Aggregate market value of quoted investments # NA NA

Aggregate value of unquoted investments - -

Aggregate amount of impairment in value of investments - -

Note:*Investments in Free Press House Limited amounted to 2280, hence rounded off to zero.*Investments in Anakapalli Rural Elec. Co-operative Socity amounted to 100, hence rounded off to zero.** The Borrea Coal Company Limited is under liquidation and accordingly has not been considered for consolidationof financial statements.

*** Represents investments which have been provided for impairment.# The Orissa Minerals Development Company Limited had entered into a joint venture with M/s Usha (India) Ltd.for managing the assets of M/s East India Minerals Ltd. (EIML). The matter is under dispute and present status ofthe company and loss if any on account of diminution in value has been provided for. As the JV agreement expiredon 04.10.2013, investment in JV has been shown as Other Investment. Investment in Woodland Multi-specialityHospital Limited and The Sijua (Jherriah) Electric Supply Company Ltd. has also been provided for.

163

7 Loans(Unsecured and considered good unless otherwise stated) ( in Crores)

Particulars 31st March 2019 31st March 2018

Non-current loansLoans to employees 46.69 49.16Loan to Andhra Pradesh Industrial Infrastructure Corporation(APIIC) (including Accrued interest)* 96.68 173.77Loans to others 0.07 0.07

143.45 223.00Loss allowance (0.07) (0.07)Total long-term loans 143.37 222.93Current loansMaterial issued on loan - -Loans to employees 0.41 0.30

0.41 0.30Loss allowance - -Total short-term loans 0.41 0.30

* Loan to APIIC has been rescheduled considering the prepayments made during the year. Accordingly, the loan hasbeen fair valued during the year.

(i) Particulars of Loans Receivables(a)Secured and considered good 0.00 0.00(b) Unsecured and considered good 143.79 223.23(c )Which have significant increase in credit risk 0.00 0.00(d) Credit impaired 0.07 0.07

(ii) Loans due by Directors/officers - -(iii) Loans due by private companies in which director of the Group is a director - -The loss allowance on loans has been computed on the basis of Ind AS 109, Financial Instruments, which requiressuch allowance to be made even for loans considered good on the basis that credit risk exists even though it may be very low.

NoteSubsidiary,The Orissa Minerals Development Company Limited had had entered into a joint venture with M/s Usha (India) Ltd. for managing theassets of M/s East India Minerals Ltd. (EIML). However over the period , the compnay has not any finance control over the said company.The matteris under dispute and present status of the company and loss if any on account of diminution in value not ascertained and provided for. Further, in viewof the above , the financial statement of the said joint venture company has not been considered for consolidation of Financial Statements.

Name of the joint venture Principal Activity 31st March 2019 31st March 2018

East India Minerals Limited Mining, Manufacturing and Trading 26% 26%

A. The undertakings of the following companies have been taken over by the Government:- (a) Bird & Company Limited(b) Dishergarh Power Supply Company Limited (Bihar Unit). (c) Kinnison Jute Mills Company Limited. (d) Kumardhubi EngineeringWorks Limited. (e) Sijua (Jherriah) Electric Supply Company Limited. (f) Union Jute Company Limited.B. Compensation receivable by the Group in respect of its investments in shares and debentures, as the case may be, in the abovecompanies has not yet been determined. However, investments in Bird & Co. Ltd. in debentures, preference shares and ordinaryshares have already been written off. Investment in other companies are fully provided for.

C. Category-wise other investments - as per Ind AS 109 classification

164

( in Crores)

Particulars 31st March 2019 31st March 2018

Financial assets mandatorily carried at fair value throughprofit or loss (FVTPL) 6.32 6.32Less: Impairment in the value of investment classified as FVTPL (4.36) (4.36)Net financial assets mandatorily carried at fair value throughprofit or loss (FVTPL) 1.95 1.95Amortised cost 0.01 0.01Less: Impairment classified as amortised cost (0.01) (0.01)Net amortised cost - -Total 1.95 1.95

8 Other financial assets ( in Crores)

Particulars 31st March 2019 31st March 2018

Security deposits 1.64 1.71

Accrued interest

Employee loans 22.99 22.00Term deposits with banks with maturity of more than 1 year 1.60 12.59

Other advances (net of Provision: 2019: 0.01 Crs, 2018: 0.01 Crs) 0.09 0.15Total non-current other financial assets 26.32 36.45Current maturities of long term loans:- Employee loans 20.84 22.13

- Loan to APIIC - 31.18Accrued interest

- Term Deposits 13.13 19.67- Employee loans 2.51 2.26

- Others 31.38 19.17Security deposits 333.08 303.43

Advances to related parties-International Coal Ventures Private Limited* - -

-Rinmoil Ferro Alloys Private Limited* 1.21 1.21Claims recoverable (net of Provision: 2019: 51.60 Crs, 2018: 51.97 Crs) 139.99 91.55

Other receivables (net of Provision: 2019: 1.33 Crs, 2018: 0.51 Crs) 2.94 3.28

Total current other financial assets 545.07 493.88

(i) Advances due by Directors/ officers - -

(ii) *Advances due by private companies in which director of the Group is a director 1.21 1.21

9 A. Reconciliation of effective tax rate ( in Crores)

Particulars 31st March 2019 31st March 2018

Profit before tax (1,002.91) (2,175.30)Tax using the Group’s domestic tax rate (Current year 31.2%(Subsidiary 29.12%) and Previous Year 30.9%(Subsidiary 25.75%)) (281.87) (684.99)Reduction in tax rate 0.00 0.00Tax effect of:Non-deductible tax expenses 2.98 96.62Income not credited to SOPL 13.55 9.11Scientific research deduction (0.03) (0.09)Income exempt/Expenses deductible from income taxes 5.51 (78.18)Recognition/Derecognition of Tax losses (350.69) 135.90Others 20.52 (25.86)

(590.02) (547.49)

The current year losses for which deferred tax asset has been recognised in the books shall expire on 31st March,2027 (Previous Year: 31st March 2026).

165

B. Recognised deferred tax assets and liabilities ( in Crores)

Particulars 31st March 2019 31st March 2018

Deferred tax liabilitiesExcess of depreciation/ amortisation on fixed assets underincome-tax law over depreciation/ amortisation provided inbooks of account 2,690.96 2,164.98Others 0.62 0.70Total deferred tax liabilities (A) 2,691.58 2,165.68Deferred tax assetsProvision for Gratuity 174.21 170.31Provision for Doubtful Debts, Advances, Claims, interest, others 212.39 28.55MAT Credit Entitlement 242.41 242.41Losses available for offsetting future Taxable income 3,403.94 2,446.21Tax impact on remeasurement gain/(loss) arising from definedbenefit obligation 0.17 0.01Others 16.06 53.68Total deferred tax assets (B) 4,049.18 2,941.17Net Deferred Tax Liability/ (Asset) (A-B) (1,357.60) (775.49)

10 Other non-current assets ( in Crores)

Particulars 31st March 2019 31st March 2018

Capital advances 60.72 72.63Advances with public bodies 0.58 0.58Advance to vendors 0.00 0.00OthersPrepaid expensesLoan to APIIC 23.32 38.91Employee loan 1.76 8.30Others - 0.43Total 86.38 120.85Less: Allowance for bad and doubtful non financial assetsCapital advances (0.48) (0.48)Total 85.90 120.37

(i) Advances due by Directors/ officers - -(ii) Advances due by private companies in which director of the Group is a director - -11 Inventories : (As taken and certified by the management) ( in Crores)

Particulars 31st March 2019 31st March 2018

Raw materials 2,378.39 1,559.60Add: In-transit/ Under inspection 1,174.57 1,093.33Less: Provision for shortages 573.93 512.65

2,979.03 2,140.28Semi-finished/finished goods 3,313.57 2,381.59Add: In-transit/ Under inspection 82.40 56.61

3,395.97 2,438.20Stores and spares 1,087.73 1,053.57Add: In-transit/ Under inspection 100.23 65.71Less: Provision for obsolescence & Non-moving items 45.23 39.78

1,142.73 1,079.50Total 7,517.73 5,657.98

In case of OMDC: Deferred Tax Assets is created for the loss incurred due to payment of Compensation against excess Miningpursuant to the judgement of Hon'ble Supreme Court dated 02.08.2017 and Provision for Outstanding amount of Compensation;Future Economic benefit is subject to making payment of full compensation amount towards OMDC Leases, after which the Companymay be permitted to resume mining activities. The amortisation effect of the deferred tax assets will be given once the mining leasesare given permission to resume till the validity of the leases.

166

12 Trade receivables ( in Crores)

Particulars 31st March 2019 31st March 2018

Unsecured, considered good 1,133.50 999.16Doubtful 28.52 23.31

1,162.02 1,022.47Less: Loss allowanceDoubtful 28.52 23.31Total 1,133.50 999.16

Note:((i) Debts due by Directors/officers - -(ii) Debts due by private companies in which director of the Group is a director - -(iii) The Group's exposure to credit and currency risks, and loss allowances related to trade receivables are

disclosed in Note 39.

Note: Valuation of inventories (Valued as per Accounting Policy 2.4)(i) Quantities of closing Stock of finished / semi-finished goods/Raw materials have been adopted as per book

balances after duly adjusting for shortages/ excesses identified on physical verification at anytime during the year.(ii) No credit is taken in the accounts for the stock of run of mines ore and rejects at Mines.(iii) Coke Breeze is valued at 60% of the production cost of BF coke and Nut Coke cost is valued at 90% of

Production cost of BF Coke(iv) 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(Quantity of 3262010 tonnes) for which no value is assigned other than dump slag identified for sale(Quantityof 2308000 tonnes).

(v) The stock of production related iron scrap and steel scrap has been considered in the accounts on the basisof visual survey / estimates and are valued at 75 % and 90 % respectively, at lower of the cost of Pig Iron andof the domestic net realisable value of Pig Iron.

13 Cash and cash equivalents ( in Crores)

Particulars 31st March 2019 31st March 2018

Cheques in hand 77.96 34.58Cash on hand 0.04 0.03Balance with banks :- Current account 32.29 7.33- Deposit accounts 88.43 815.02- Prime Minister's Trophy Award Fund 7.88 8.52- Earmarked Balance with scheduled banks (includes deposits of unpaid dividend) 24.05 6.81- In deposit account (having maturity between 3-12 months) 245.52 7.00Total 476.17 879.28

14 Other tax assets (net) ( in Crores)

Particulars 31st March 2019 31st March 2018Advance income tax 65.28 65.26Total 65.28 65.26Other tax liabilitiesIncome tax payable 25.68 33.02Total 25.68 33.02

Pending reconciliation and adjustment with respect to The Orissa Minerals Development Company Limited ofIncome Tax payment against liability, both the figures have been shown as gross.

167

15 Other current assets ( in Crores)

Particulars 31st March 2019 31st March 2018

Advances to related parties-Bisra Stone Lime Company Limited - -- Orissa Mineral Development Corporation (0.03) -Advances other than capital advances- Government departments 996.70 460.51Less: GST Recoverable Pending Adjustment 430.89 565.81 0 460.51- Contractors 10.89 11.73Less: Provision for doubtful advances 0.2 10.69 0.29 11.44- Suppliers 117.00 66.45Less: Provision for doubtful advances 4.95 112.05 5.44 61.01- Employees 20.16 18.34Less: Provision for doubtful advances 0.01 20.15 0.04 18.30- Others** 108.48 43.82Less: Provision for doubtful advances 9.5492 98.93 9.64 34.18Others- Prepaid expensesEmployee loan 5.29 4.69Loan to APIIC - 4.20Lease payments* 0.43 0.43Others 13.39 10.15- Assets held for sale (net of provision for loss) 0.12 0.12- Export benefits receivable 53.50 76.78'Others 2.86 3.08Total 883.18 684.89(i) Advances due by Directors/ officers - -

(ii) Advances due by private companies in which director of the Group is a director - -

* Prepaid lease prepayments for leasehold land includes prepayments towards 4,365.282 and 793.043 hectoracres of land in respect of which lease deeds are yet to be renewed and The Orissa Minerals DevelopmentCompany Limited and The Bisra Stone Lime Company Limited have not been permitted to carry on the operationsby the Government on the said respective lands.

** In case of OMDC: Other advances 28.87 Crore includes payment of advance with protest amounting to 27.15 Crore to DDM, Joda against compensation of excess mining for BPMEL Leases as per the Order of

Supreme Court dated 02.08.2017.

16 Share capital ( in Crores)

Particulars 31st March 2019 31st March 2018

Authorised4,890,000,000 (31st March 2018: 4,890,000,000)equity shares of 10 each 4,890.00 4,890.003,110,000,000 (31st March 2018: 3,110,000,000)7% non-cumulative redeemable preference shares of 10 each 3,110.00 3,110.00

8,000.00 8,000.00Issued, subscribed and paid-up capital4,889,846,200 (31st March 2018: 4,889,846,200)Equity Shares of 10 each. 4,889.85 4,889.85Total 4,889.85 4,889.85

168

Terms and rights attached to equity shares

The Holding Company has only one class of shares referred to as equity shares having a par value of 10 each.

Each holder of the equity share, as reflected in the records of the Holding Company as of the date of the shareholder

meeting, is entitled to one vote in respect of each share held for all matters submitted to vote in the shareholder

meeting. The Holding Company declares and pays dividends in Indian rupees. The Holding Company may declare

dividend in the Annual General Meeting as recommended by the Board of Directors.

In the event of liquidation of the Holding Company, the holders of equity shares will be entitled to receive any of

the remaining assets of the Holding Company after distribution of all preferential amounts. The distribution will be

in proportion to the number of equity shares held by the shareholders.

(ii) Particulars of shareholders holding more than 5% of total number of equity shares

Particulars 31st March 2019 31st March 2018

No. of shares % of holding No. of shares % of holding

Equity shares of 10 each, fully paid up held

President of India 4,889,846,200 100% 4,889,846,200 100%

(iii) Holding Company does not have any holding company as at 31st March 2019/ 31st March 2018

(iv) For the period of five years immediately preceeding the reporting date -

- The Holding Company has not allotted any shares for consideration other than for cash.

- The Holding Company has neither issued bonus shares nor has bought back any shares.

(i) Reconciliation of the number of equity shares outstanding at the beginning and at the end of the reporting period:

Particulars 31st March 2019 31st March 2018

No. of shares Amount No. of shares Amount ( in Crores) ( in Crores)

Shares outstanding at the beginning of the year 4,889,846,200 4,889.85 4,889,846,200 4,889.85

Shares issued during the year - - - -

Shares outstanding at the end of the year 4,889,846,200 4,889.85 4,889,846,200 4,889.85

169

17 Other equity ( in Crores)

Particulars 31st March 2019 31st March 2018

(A) Reserves and surplusRetained earningsBalance at the commencement of the year (577.86) 819.89

Add: Surplus as per Statement of Profit and Loss (55.40) (1,431.12)

Add: Other comprehensive income (net of tax) 34.49 20.41

Add: Additions* 0.00 13.35

Less: Appropriations:

- Dividend including dividend distribution tax (0.00) (0.33)

- Appropriations of reserves 0.00 (0.05)

Balance at the end of the year (598.77) (577.86)Other reservesCapital Redemption ReserveBalance at the commencement of the year 2,937.47 2,937.47

Movement during the period 0.00 0.00

Balance at the end of the year 2,937.47 2,937.47Capital reserveBalance at the commencement of the year (0.46) (0.46)

Addition during the year 0.00 0.00

Balance at the end of the year (0.46) (0.46)Reserve fund as per RBI Act (Special reserve)Balance at the commencement of the year 0.75 0.72

Addition during the year 0.00 0.00

Appropriation to reserves 0.00 0.03

Balance at the end of the year 0.75 0.75General reserveBalance at the commencement of the year 3.84 3.82

Addition during the year - 0.02

Balance at the end of the year 3.84 3.84Total reserves and surplus (A) 2,342.83 2,363.74(B) Other comprehensive incomeShare of other comphrehensive income of equiy accounted investees

Balance at the commencement of the year 30.68 29.69

Addition during the period 52.57 0.99

Balance at the end of the year 83.25 30.68Total other comprehensive income (B) 83.25 30.68Total other equity (A+B) 2,426.08 2,394.42

*Represents change in the share of net assets of equity accounted investees upto 31st March, 2018 due tochange in ownership interests in associate,ICVL in previous year.

170

18 Borrowings ( in Crores)

Particulars 31st March 2019 31st March 2018

Non-current borrowingsTerm loan from banks-Secured bank loans 9,309.26 6,545.16-Unsecured bank loans - -Current maturities of term loans 561.30 909.05

9,870.56 7,454.21Less: Amount included in other financial liabilities-Current 561.30 909.05Total non-current borrowings 9,309.26 6,545.16Current borrowings Loans from Banks- Secured working capital borrowings (by hypothecation of current assets) 5,105.07 3,181.06- Loan from IDBI Bank including accrued interest against Fixed Deposit 123.01 40.14- Unsecured working capital borrowings 2,630.22 1,880.88- Unsecured foreign currency facilities - 2,178.31 Commercial papers (Unsecured) 1,985.73 1,981.02Total current borrowings 9,844.03 9,261.41

Information about the Group's exposure to interest rate, foreign currency and liquidity risks is included in Note 39.A. Terms of Repayment and Nature of Security of Non-Current Borrowings(Holding Co.)- Indian rupee loan amounting to 900.00 crore from SBI secured by primary security as pari passu first charge on current assets of the company

and collateral security as pari passu first charge on movable plant and machinery and all other movable assets except current assets of thecompany . The loan is repayable in structured consecutive quarterly instalments started from first quarter of FY 2017-18 and the last instalmentis due on 31st March 2022.

- Indian rupee loan amounting to 450.00 Crore from SBI secured by primary security as pari passu first charge on current assets of the companyand collateral security as pari passu first charge on fixed assets of the company. The loan is repayable in structured consecutive quarterlyinstallments started from first quarter of FY 2019-20 and last installment is due on 31st March 2023.

- Indian rupee loan amounting to 3657.00 crore from SBI secured by pari passu first charge on movable plant and machinery and all othermovable assets except current assets . The loan is repayable in structured consecutive quarterly instalments started from last quarter of FY2016-17 and the last instalment is due on 31st March 2031.

- Indian rupee loan amounting to 1400.07 crore from SBI secured by pari passu first charge on movable plant and machinery and all othermovable assets except current assets of the company. The loan is repayable in structured consecutive quarterly instalments started from firstquarter of FY 2018-19 and the last instalment is due on 31st March 2031.

- Indian rupee loan amounting to 1000.00 crore from Canara Bank secured by hypothecation of movable fixed assets including Plant& machinerycreated out of proceeds of the term loan. The loan is repayable in structured consecutive quarterly instalments starting from 30th Sep 2022 andthe last instalment is due in 30th June 2027.

- Indian rupee loan amounting to 200.00 crore from Vijaya Bank secured as pari passu first charge on hypothecation of movable fixed assets .The loan is repayable in structured consecutive quarterly instalments starting from 30th June 2022 and the last instalement is due on 31st March2027.

- Indian rupee loan amounting to 500.00 crore from IDBI secured by primary security as pari passu mortgage and charge in favour of IDBI, of allmoveable fixed assets and immovable assets excluding Project land at Forged Wheel Plant, Lalganj, Uttar Pradesh both present and future.Collateral security as pari passu charge on Plant and Machinery of Holding Company's Visakhapatnam Plant to the extent of loan amount.Theloan is repayable in structured consecutive quarterly instalments starting from 28th March 2022 and the last instalement is due in 28th December2029.

- Indian rupee loan amounting to 850.42 crore from Canara Bank secured by primary security as pari passu first charge on movable fixed assetsof the company both present and future including plant and machineries to be purchased out of term loan. The loan is repayable in structuredconsecutive quarterly instalments starting from 21st December 2023 and last instalment is due on 21st September 2028.

- Indian rupee loan amounting to 500.00 Crore from Union Bank of India secured as pari passu first charge by hypothecation on all existing / futuremachinery/ plant/ vehicle/ capital goods/ assets/ craft and all those assets/ movable properties and/ or capable of passing by delivery whetherinstalled or not and whether now lying loose or in cases and now being or at any time brought into or upon or at any time in course of transit to thepremises/ factory of the borrower at Visakhapatnam Steel Plant, Visakhapatnam and their other plants/ branches. The loan is replayable instructured consecutive quaterly instalments starting from 31st December 2020 and last instalment is due on 30th September 2025.

- Indian rupee loan amounting to 160.59 crore from Vijaya Bank secured as pari passu first charge by hypothecation of moveable fixed assetsof the company. The loan is repayable in structured consecutive quarterly instalments starting from 31st August 2023 and the last instalement isdue on 31st May 2028.

- Indian rupee loan amounting to 252.47 crore from SBI secured by primary security as paru passu first charge over entire movable, immovableand intangible assets excluding project land of FWP, Lalganj, UP both present & future. Collateral security as pari passu first charge over entiremovable, immovable and intangible assets of company's Visakhapatnam plant to the extent of 133% of loan amount at all times both present &future. the loan is repayable in structured consecutive quarterly instalments starting from 31st March 2022 and last instalment is due on 31st

December 2029.B. Loans guaranteed by Directors and others Nil NilC. Default in repayment of loans and interest Nil Nil

171

Particulars

D.Reconciliation of liabilities arising from financing activities ( in Crores)

- - Foreign Exchange Fair Value Movement Change

Long-Term Borrowings 7454.21 2416.35 0 - 9870.56

(including Current Maturities)

Short Term Borrowings 9261.41 609.01 -26.39 - 9844.03

For the yearended 31st

March 2018

Cash Flows :Inflow /

(Outflow)Non-Cash Changes

For the yearended 31st

March 2019

* Other financial liabilities includes(a) 472.49 Crore (Previous year 678.08 Crore - pension & wage revision)

provision on account of pay revision (pension) in respect of Executive employees and Non-Executive

employees of Holding Co and (b) demand of State Govt.of Odisha including interest against excess mining of

309.88 Crs in respect of OMDC,.

**Unpaid dividend includes:(a) In case of Eastern Investments Limited 0.09 Crore for March 31,2019 ( 0.16

Crore for March 31, 2018 ) .and (b)In case of, The Orissa Minerals Development Company Limited 0.32

Crore ( 0.51 Crore for March 31, 2018 )for disputed dividend as on March 31, 2019.

The Group's exposure to currency and liquidity risks related to financial liabilities is disclosed in Note 39.

19 Other financial liabilities ( in Crores)

Particulars 31st March 2019 31st March 2018

Non-current other financial liabilities

Security deposits 96.38 25.90

Other liabilities - -

Total non-current other financial liabilities 96.38 25.90

Current other financial liabilities

Current maturities of long-term debt:

- Term loans 561.30 909.05

Interest accrued but not due on borrowings 7.38 25.83

Interest accrued and due on borrowings 6.51 5.57

Earnest money, security & other deposits 376.02 291.52

Capital creditors 74.17 171.18

Employee related payables and recoveries 4.95 3.59

Royalty payable 0.94 1.17

Unpaid dividends** 0.60 0.92

Unclaimed amount on redemption of preference shares 0.02 0.02

Amount payable to related party - -

Other financial liabilities* 4,064.89 4,160.49

Total current other financial liabilities 5,096.79 5,569.35

172

20 Provisions ( in Crores)

Particulars 31st March 2019 31st March 2018

Non-current provisionsProvision for employee benefitsLiability for Gratuity 17.79 15.43Liability for Compensated Absences 316.91 316.07Liability for Retirement Benefits 515.20 455.02Liability for Employee Family Benefit Scheme 168.12 189.62Liability for Service Awards 40.95 41.55Liability for Leave Travel Concession 12.86 12.02Liability for Super annuation Fund 0.07 0.05Total provisions for employee benefits (A) 1,071.90 1,029.76Other provisionProvision for rates and taxes 0.49 0.49Provision for mines closure obligation 3.79 3.61Total other provision (B) 4.28 4.10Total non-current provisions (A+B) 1,076.17 1,033.86Current provisionsProvision for employee benefitsLiability for gratuity 556.22 546.46Liability for compensated absences 21.56 29.44Liability for retirement benefits 13.47 42.15Liability for employee family benefit scheme 40.12 35.83Liability for service awards 3.32 2.77Liability for leave travel concession 7.31 13.84Total provisions for employee benefits (A) 642.00 670.49Other provisionsProvision for Site Reclamation 14.76 8.32Provision for wildlife conservation plan 5.16 4.82Provision for lease renewal fees - -Provision for other legal obligations 8.77 19.13Other Provisions 11.15 1.63Total other provisions (B) 39.84 33.90Total current provisions (A+B) 681.84 704.39

In case of OMDC: Provision available for legal obligation was 19.13 Crore out of which 10.36 Crore has beenpaid to Operational Creditor(s) as per settlement in NCLT case

In case of BSLC: FY 2017-18 Excess provision written back represents 3.32 Crore provided in earlier years onaccount of demand raised by Government of Odisha under the Indian Stamp (Odisha Amendment) Act, 2013which was stayed by Odisha High CourtMovement in provision for Mine closure obligation / Site Reclamation ( in Crores)

Particulars Mine closure obligation/Site Reclamation

Balance at 1st April 2017 7.49Provisions made during the year 4.44Balance at 31st March 2018 11.93Balance at 1st April 2018 11.93Provisions made during the year 6.62Balance at 31st March 2019 18.55

173

21 Other non current liabilities ( in Crores)

Particulars 31st March 2019 31st March 2018

OthersDeferred income 13.70 82.39

Total 13.70 82.39A. Deferred income (Holding Co.)1. The grant relating to Trophy fund represents the unspent amount received on account of Prime Minister Trophy , Steel

Minister Trophy and Steel Minister Development fund including interest earned.The same has to be spent for specificpurposes and will be amortised over the period in which the cost incurred shall be recognised . Wherever the TrophyFund deposit is utilised for construction of any asset,the transfer from the Trophy Fund is effected only on capitalisationof said assets.

22 Trade and Other payables ( in Crores)

Particulars 31st March 2019 31st March 2018

Trade payables-Micro Enterprises and Small Enterprises 109.63 74.67-Other than Micro Enterprises and Small Enterprises 1,586.20 1,153.29Total 1,695.83 1,227.96

All trade payables are 'current'.The Group's exposure to currency and liquidity risks related to trade payables is disclosed in Note 39

24 Other current liabilities ( in Crores)

Particulars 31st March 2019 31st March 2018Income Received in advance 1.71 1.92Advances from customers 305.86 221.55Statutory Liabilities 358.89 298.15Other advances/liabilities 1.26 6.57Total 667.72 528.19

Mine closure obligationA provision for mine closure obligation is recognised considering the future obigation on the Group for the restorationof mines.

Name of the Mine of Holding Co. Lease expiryJaggayyapeta 8-Aug-2020Madharam 13-Jul-2020Garbham 7-Oct-2022

23 Derivatives - Liabilities ( in Crores)

Particulars 31st March 2019 31st March 2018

Foreign exchange contracts - 0.60Total - 0.60

PM Trophy Fund and PM Trophy Fund Deposit changes during the year 18-19 of Holding Co.: ( in Crores)

Note:13 Note:21

Particulars Deposit Trophy Fund Included note refOpening balance 8.52 8.52Add:Interest during the year 0.60 0.60Less:Utilisation(a) Providing Acs in CWC-I foremployee welfare -capitalised 1.00 1.00 3.A (Additions to PPE)(b)Wellness Centre for employeewelfare - CWIP 0.24 0.00 3.G (CWIP)Closing Balance 7.88 8.12

2. The grants relating to PPE of Holding Co. represents unamortised Subsidy received from Government towardsestablishment of 5MW Solar Power Plant and unamortised value of PPE acquired out of Trophy fund.This amount will beamortised over the useful life of the relevant asset.

174

25 Revenue from operations ( in Crores) Particulars For the year ended

31st March 2019 31st March 2018

A. Sale of products (including excise duty*)Domestic sales $ 19,563.14 14,919.56Less: Sale of trial run production (transferred to CWIP)** 506.32 2,127.62

19,056.82 12,791.94Export sales 1,305.04 1,725.01Less: Sale of trial run production (transferred to CWIP) 0.00 31.11

1,305.04 1,693.90Total Sale of Products (A) 20,361.86 14,485.84B. Other operating revenuesInternal consumption 19.03 31.50Export benefits 113.07 84.10Dividend Income 0.02 0.02Interest Income 53.00 54.56Others 21.87 31.91Total other operating revenues (B) 206.99 202.09Total revenue from operations (A+B) 20,568.85 14,687.93

*Revenue from operations for the periods up to 30th June, 2017 includes excise duty, which is discontinuedeffective 1st July, 2017 upon implementation of Goods and Service Tax (GST). In accordance with Ind AS-115 Revenue Standard (PY:INDAS -18) , GST is not included in Revenue from Operations. In view of theaforesaid change, Revenue from Operations for the period ended on 31st March, 2019 is not comparable withthe previous periods.

**includes Excise Duty of Previous Year: 31.25 Crore $ Excluding inter Co.transactions26 Other income ( in Crores)

Particulars For the year ended31st March 2019 31st March 2018

Interest income under the effective interest method on:Banks 0.30 0.17Loans to employees 9.82 8.15Others * 75.53 69.25Dividend income on equity instruments - -Claims for finished goods (shortages and missing wagons) -Rent income from property subleases 35.01 32.12Liquidated damages 75.54 110.84Net gain on sale of property, plant and equipment 0.99 0.42Write back of provisions no longer required 2.56 8.00Licence fee 0.24 -Sundry receipts ** 147.38 39.62Total 347.38 268.56

Note: In case of Holding Co(a) * includes an amount of 13.12 crore of accrued interest upto 31.03.2019 accounted based on relief given by CIT(A)-9

Hyderabad vide common order dt.30.04.2019 for AY 2012-13 to AY 2014-15 in line with IND AS-10.(b) ** includes an amount of (i) 54.75 Crore refund received from M/s. NMDC during the year towards DMF (District Mineral

Fund) for the period 12.01.2015 to 16.09.2015 (ii) 1.74 Crore rebate received from Indian railways during the yeartowards fulfillment of Gross Freight Revenue (GFR) and volume discount pertaining to the year 2017-18. (iii) 26.38Crore of GST Compensation cess refund claimed during the year for the FY 2017-18 as per circular no.79/53/2018- GSTdated 31.12.2018.

(c) ** As against our revised claim of 319.71 Crore towards damages caused by Hudhud cyclone, an amount of 171.91Crore being the amount recommended by surveyor and under consideration by insurance company has been accountedtill FY 2018-19 (upto previous year 140.25 Crore has been accounted on account payment) .The expenditure on accountof damages caused by 'Hudhud cyclone is accounted under several primary heads of accounts as it is difficult to reliablyidentify the said expenditure for its separate disclosure.

175

27 Cost of material consumed ( in Crores) Particulars For the year ended

31st March 2019 31st March 2018

Raw materialsCoal 7,513.52 6,112.90Coke and Coke breeze 530.30 75.84Iron ore 4,539.45 3,378.98Limestone* 217.46 176.86Dolomite 145.90 143.09Silico manganese 622.73 488.51Ferro silicon 111.10 74.57Aluminium 145.04 112.43Manganese ore 3.86 3.40Petroleum coke 53.25 28.39Sea Water magnesite 11.25 16.15Others 66.64 44.96Total 13,960.50 10,656.08Add: Output from trial run production 14.48 216.75Less: Material Consumed for trial run production 193.97 2,222.66Less: Inter account adjustments - raw material mining cost 65.84 65.33Total 13,715.17 8,584.84

*Excluding intercompany transactions

28 Changes in inventory of finished goods and work-in-progress ( in Crores) Particulars For the year ended

31st March 2019 31st March 2018

Opening stock 2,438.20 2,366.04Less: Closing stock 3,395.97 2,438.20

(957.77) (72.16)Less: Excise duty on accretion / depletion to stock(including IGST Credit) 0.00 119.51

Total (957.77) (191.67)

Note : In case of Holding Co: ( in Crores)

Particulars 31st March 2019 31st March 2018

Cost of inventories valued at net realisable value 447.31 203.88

Inventories valued at net realisable value 446.96 198.53

Write down of inventories charged as expense 0.35 5.35

29 Employee benefits expense ( in Crores) Particulars For the year ended

31st March 2019 31st March 2018

Salaries and wages 2,076.47 2,054.66Contribution to provident fund and other funds 252.75 174.11Expenses related to compensated absences - -Staff welfare expenses 152.26 158.36Total 2,481.49 2,387.13

176

( in Crores)

Particulars 31st March 2019 31st March 2018Capital Work in Progress / Expenditure During ConstructionSalaries and wages (0.36) 90.21

Company's contribution - provident fund & other funds 1.03 26.64

Staff Welfare expenses 0.56 6.12

Total 1.23 122.97

30 Finance costs ( in Crores)

Particulars For the year ended31st March 2019 31st March 2018

Interest expense on financial liabilities :Foreign currency facilities 39.03 81.23Bank loans and commercial papers* 1,241.24 850.06Others 1.25 5.09Other borrowing costs 1.31 3.89Total 1,282.83 940.27

Note:(i) In the case of Holding Co, Expenditure on finance cost not included above and charged to :

( in Crores)

Particulars 31st March 2019 31st March 2018Capital Work in Progress / Expenditure During ConstructionInterest - Banks 216.87 219.98Total 216.87 219.98

(ii) In case of general borrowings of Holding Co., the weighted average rate of borrowing cost for the year

2018-19 is 9.23% ( FY 2017-18 : 9.30%)

(iii) *includes 4.28 Crore towards Interest on Loan taken by OMDC against FD of 4.26 Crore and Commissionon Bank Gurantee submitted to IBM amounting 0.02 Crore.

31 Depreciation and amortisation expense ( in Crores)

Particulars For the year ended31st March 2019 31st March 2018

Depreciation of property, plant and equipment 1,049.41 764.75Amortisation of intangible assets 23.36 28.73Total 1,072.77 793.48

Note:(i) In the case of Holding Co, Expenditure on Employee benefits not included above and charged to :

177

32 Other expenses ( in Crores) Particulars For the year ended

31st March 2019 31st March 2018

Consumption of stores and spare parts 874.54 625.32Power and fuel (Refer note 32.1) 1,152.23 1,082.29Repairs and maintenance (Refer note 32.2) 500.95 458.95Remuneration to auditors 0.40 0.45Rent 3.07 2.95Rates and taxes 10.37 6.94Insurance 18.00 27.78Handling and scrap recovery 234.43 195.50Freight outward 597.27 577.36Research and development expense 0.22 1.04ProvisionsShortage/damaged material/obsolescence/non-moving items of stores 6.36 3.24Doubtful advances and claims 1.00 1.13Doubtful Debts 5.42 0.66Others 0.59 0.95Write-offsProperty, plant and equipment written off 1.24 28.30Shortage /damaged material /obsolescence /non-moving items of stores 0.01 -Doubtful advances and claims - 0.01Unviable mines expenditure- written off - 0.23Bad debts - -Sundries 732.55 352.54Net (Gain) /Loss arising on Financial instruments designated as FVTPL (103.36) 43.42Donation 3.65 3.92Miscellaneous expenses (Refer note 32.3) 481.46 406.43Total 4,520.40 3,819.40

Note:In respect of The Orissa Minerals Development Company Limited:-(a) Compensation against Excess Mining:-Pursuant to the Judgement of Hon'ble Supreme Court dated 02.08.2017, Dy. Director

of Mines, Odisha had issued different demand notices dated 02.09.2017, 23.10.2017 & 13.12.2017 to OMDC for OMDCLeases and to BPMEL for BPMEL Leases towards compensation. The amount of Demand for OMDC Leases is 702.18crore and for BPMEL Lease is 861.57 crores, totalling 1563.76 Crore towards EC, FC and MP/CTO.

OMDC had been operating BPMEL Leases backed by Power of Attorney to sign and execute all mining leases and othermineral concessions from time to time. As the Mining Rights of BPMEL Leases are subjudice, the consequence of legaloutcome is not known as on 31.03.2019. OMDC has paid the compensation of 552.67 Crore towards OMDC Leases ( 14.80Crore on 29.12.2017, 130.94 Crore on 16.11.2018, 6.94 Crore on 30.01.2019 and 400 Crore on 01.03.2019 ) and provisonfor balance payment including interest upto 31.03.2019 of 309.88 Crore has been made in the books of accounts. OMDChas paid a sum of 27.15 Crore ( 25.15 Crore on 29.12.2017 and 2 Crore on 16.11.2018 ) towards BPMEL leases asadvance. The remaining amount of compensation including Interest upto 31.03.2019 against BPMEL Leases amounting

1067.98 Crore are shown under Contingent Liabilities.

(b) Provision on Investment: The Company had an Investment in M/s EIML and the Joint Venture Agreement with the party hadexpired on 04.10.2013. An amount of 2.81Crore has been provided for dimunition in the value of Investment as therecoverability of the same from the party is doubtful. Investment on Woodland Multi-speciality Hospital of 0.05 Lacs and TheSijua (Jherriah) Electric Supply Co. Ltd. of 0.01 Lacs has been provided for in the year 2017-18.

In case of Holding Co:(i) Development expenditure is capitalized only if it can be measured reliably and the related asset and process are identifiable

and controlled by the Company.

(ii) Expenditure towards research and other development is accounted under the primary heads of account and is expensed asand when incurred.

(iii) Capital Expenditure on Research and Development is included in the Intangible assets.

178

32.1 Power and fuel ( in Crores)

Particulars For the year ended 31st March 2019 31st March 2018

Purchased power 405.75 438.67

Coal 741.86 640.24Furnace oil/ LSHS/ LDO 4.62 3.38Total 1,152.23 1,082.29

Cost of Power and fuel does not include the cost of generation of power and production of certain fuel elementsin the plant of Holding Co. which are internally consumed. The related expenses have been included under theprimary heads of account.32.2 Repairs and maintenance ( in Crores)

Particulars For the year ended31st March 2019 31st March 2018

Plant and Equipment 331.86 275.51Buildings 34.55 45.99Others 134.53 137.45Total 500.95 458.95

32.3 Miscellaneous expenses ( in Crores)

Particulars For the year ended31st March 2019 31st March 2018

Technical services 9.49 6.12Travelling expenses 69.63 65.88Printing and stationery 2.31 2.26Postage and telephone 3.29 4.09Water Charges 101.32 81.26Legal expenses 8.60 2.14Bank charges 10.61 6.00Community development welfare 6.07 6.03Security expenses 98.37 91.89Entertainment expenses 1.99 2.38Advertisement 21.35 17.99Demurrages and wharfages 26.34 4.57ISO Audit Expenses 0.14 0.19Selling expenses 19.57 15.93Exchange differences (Net) 102.38 99.69Total 481.46 406.43

ParticularsHolding Co Subsidiary

For the year ended For the year ended31st March 2019 31st March 2018 31st March 2019 31st March 2018

(a) Amount required to be spent by the Company during the year Nil Nil 0.35 0.71(b) Amount spent during the year - Construction/ acquisition of any asset 0.00 0.00 0.00 0.00 - On purpose other than above 10.30 9.60 0.06 0.20Total 10.30 9.60 0.06 0.20

32.4 Details of Corporate Social Responsibility expenditure ( in Crores)

179

32.5 In the case of Holding Co,Expenditure on Other expenses notincluded above and charged to : ( in Crores)

Particulars For the year ended31st March 2019 31st March 2018

Power and fuel - 2.80

Repairs and maintenance - Plant and equipment and others - 0.14

Security expenses - 0.87

Travelling expenses 0.94 2.32

Postage and telephone - 0.16

Water charges 13.82 22.91

Advertisement - 0.24

Technical consultants - -

Sundries - -

Total 14.76 29.44

32A Exceptional items ( in Crores)

Particulars For the year ended31st March 2019 31st March 2018

Write back of pension liabilities* (62.53) -

Reversal of wages and salary** (162.87) -

Additional liability towards enhanced ceiling on Gratuity*** - 541.05

Total (225.40) 541.05

In case of Holding Co.:

*Subsequent to the approval of the pension scheme of the company by Ministry of Steel ,the Board of Directors ofthe Holding Company, keeping in view affordability and financial sustainability to pay by the Company, revisedpension benefits to 3% of Basic Pay + DA for Executives and 2% of Basic Pay + DA for Non- Executives in the yearof Loss and and 9% of Basic Pay + DA for Executives and 6% of Basic Pay + DA for Non-Executives in the year ofProfits.Accordingly the provision for pension has been reworked and an amount of 62.53 crore provided upto31st March, 2018 has been written back during the current year and shown as exceptional item.

Jan'2007 295.37 280.09 15.28 15.28

to Mar'2018

Jan'2012

to Mar'2018 144.88 225.09 (80.21) (80.21)

Excess provision to be written off: (64.93)Add:Amount transferred to EDC /CWIP 2.40Net amount shown under Exceptional items. (62.53)

Executive Pension Non-Executive Pension Total

Period Pension To be

provided @ 9% forProfit years and 3%

for Loss years

ActualProvided inthe books

Excess(-)/Short (+)provision

Pension to beprovided @6% for Profityears yearsand 2% forLoss years

ActualProvided inthe books

Excess(-)/Short (+)provision

Excess(-)/Short (+)provision

Write back of pension liabilities details: ( in Crores)

180

** As per Department of Public Enterprise’s (DPE) guidelines, pay revision of executives and non- executive employees ofthe company are subject to fulfilment of affordability and financial sustainability clause. The company made provisionfor pay revision during the year 2017-18 taking into consideration the representations made by Employees’ Associationsof the Company to various Govt authorities including administrative ministry (Ministry of Steel) which in turn createdconstructive obligation on the company as on 31.03.2018. However, subsequent to the clarification during the financialyear 2018-19 given by DPE vide Office memorandum dt. 10.1.2019 on the applicability of affordability clause exemptionfrom which could be obtained only by Cabinet approval, provision made towards salary revision of 162.87 crores forexecutive and non executives employees during the year 2017-18, was been written back during the current year sincethe said constructive obligation was no more existing as on 31.03.2019. The said write back was disclosed under‘Exceptional Item’ in the P & L Account. In the opinion of the Company’s management no liability is envisaged onaccount of the said pay revision on the date of this Balance Sheet.

***Govt of India enhanced the ceiling on payment of Gratuity to employees, from the earlier limit of 10 lakh to 20 lakh peremployee with effect from 29th March, 2018. Accordingly, the additional liability towards enhanced Gratuity has beenfully recognized in the statement of Profit and Loss for the year ended 31.03.2018, complying with the Ind AS-19standard dealing with “Employee Benefits”. Keeping in view the disclosure requirements under IndAS-1 dealing with“Presentation of Financial Statements”, it is disclosed in the financial statements separately as Exceptional item in FY17-18, to enable the users of the financial statements to assess the relative financial performance of the Companyappropriately in case of Holding Co..

33 (a) Statement of Compliance

These are the Group's consolidated financial statements prepared in accordance with IND AS.

The financial statements were authorized for issue by the Board of Directors on 19.08.2019

(b) The Subsidiary Companies,Joint Ventures and Associate Companies considered in the Consolidated Financial Statements are as Follows:

Name of the Company Ownership in % either Ownership in % either

directly or through directly or through Country of

Subsidiaries@ Subsidiaries@ Incorporation

2018-19 2017-18

A. Subsidiaries:

Eastern Investments Limited (EIL) 51.00 51.00 India

Subsidiaries of EIL:

1 The Orissa Minerals Development

Company Limited(OMDC) 50.01 50.01 India

2 The Bisra Stone Lime Company

Limited(BSLC) 50.22 50.22 India

The accounts of The Borrea Coal Company Ltd,another subsidiary and two associate companies namelyThe Burrakur Coal Co.Ltd and The Karanpura Development Co.Ltd of EIL have gone into liquidation andofficial liquidators have taken possession of all the Books and as a result, no account of the above saidcompanies have been prepared and considered in group consilidated financial statements

B. Joint Ventures

RINMOIL Ferro Alloys Pvt.Ltd 50.00 50.00 India

RINL POWERGRID TLT Pvt Ltd 50.00 50.00 India

C. Associate

International Coal Ventures Pvt Ltd (ICVL) 25.94 25.94 India

181

34 Use of estimates and judgement

Information about assumptions and estimation uncertainties that have a significant risk of resulting in amaterial adjustment within the next financial year are included in the following notes:Note 9 – utilization of tax losses

Note 35 – measurement of defined benefit obligationsNotes 20 and 40 – provisions and contingencies

35 Employee benefits

(i) a) Contribution to Superannuation Benefit Scheme-In case of Holding Co.An amount of 6.93 Crore (31st March 2018: 6.53 Crore) recognised in the Statement of Profit andLoss Account and 0.04 Crore (31st March 2018: 0.34 Crore) in Capital Work in Progress towardsSuperannuation Benefit Scheme (Post Employment Benefit - Defined Contribution Plan).b) Pension-In case of Holding Co.

The cumulative provision/liability towards pension benefit (Post Employment Benefit-Defined ContributionPlan) for executive & non-executive employees, amounting to 472.49 Crore and an amount of 32.13Crore recognised in the Statement of Profit and Loss Account and 0.11 Crore in Capital Work inProgress respectively for FY 2018-19.

(ii) General description of the post employment benefitsa) Provident fund

The Group pays fixed contribution to Provident Fund, at predetermined rates, to a separate Trust, whichinvests the funds in permitted securities. On the contributions, the trust is required to pay a minimum rateof interest, to the members, as specified by Government of India. The obligation of the Group is limited tothe shortfall in the rate of interest on the Contribution based on its return on investments as compared tothe declared rate.

The defined benefit plans expose the Group to actuarial risks, such as longevity risk, currency risk,interest rate risk and market (investment) risk

b) Gratuity

The Group has a defined benefit gratuity plan in India, governed by the Payment of Gratuity Act, 1972.The Gratuity plan entitles an employee, who has rendered at least five years of continuous service, toreceive 15 days salary for each year of completed service and at one month salary for each completedyear of service beyond 30 years of service at the time of retirement/ exit (In case of Holding Co.). Thedefined benefit plan for gratiuity is administered by a Gratuiy is fully funded by the Group. The fundingrequirements are based on the gratuity fund's actuarial measurement framework set out in the fundingpolicies of the plan. Employees do not contribute to the plan.

c) Retirement settlement benefits

The retired employees, their dependents, as also the dependents of the employees expired of HoldingCo.while in service are entitled for travel and transport expenses to their place of permanent residence.

d) Retirement medical benefits

Medical benefits are available to retired employees at the Holding Company's hospital/ under the healthinsurance policy.

e) Farewell scheme

Employees superannuating from the service of the Holding company shall be given 10 Gms of goldeach.The scheme shall cover all regular employees of the Holding company.

182

(iii)Other disclosures, as required under IND AS 19 on "Employee Benefits", in respect of postemployment defined benefit obligations are- Gratuity ( in Crores)

Particulars 31st March 2019 31st March 2018

Reconciliation of present value of defined benefit obligation

Balance at the beginning of the year 1,424.52 854.41

Benefits paid (80.29) (46.38)

Current service cost 23.93 8.39

Past service cost 0.53 559.98

Interest cost 108.85 61.31

Actuarial loss/ (gain) on obligation (25.64) (13.19)

Balance at the end of the year 1,451.91 1,424.52

Reconciliation of the present value of plan assets

Balance at the beginning of the year 862.74 824.97

Contributions paid into the plan 35.40 15.66

Benefits paid (79.78) (46.55)

Expected return 59.52 59.17

Interest income 0.83 0.77

Actuarial gain/ (loss) on plan assets 0.62 8.72

Balance at the end of the year 879.35 862.74

Net defined benefit liability (asset) 572.56 561.78

Expense recognised in profit and loss

Current service cost 23.93 8.39

Interest cost 49.06 2.08

Past service cost

Charged to P & L 0.53 541.50

Charged to Capital Work in Progress / Expenditure

During Construction - 18.65

Interest income - -

Total 73.52 570.62

Remeasurements recognised in other comprehensive income

Actuarial (gain) / loss on defined benefit obligation (25.64) (13.19)

Difference between actual return and interest

income on plan assets - (gain)/loss (0.66) (8.90)

Total (26.30) (22.09)

Plan assets

Cash and cash equivalents 3.41 0.71

Funds managed by Insurer 875.94 862.03

183

- Retirement medical benefits ( in Crores)

Particulars 31st March 2019 31st March 2018

Reconciliation of present value of defined benefit obligation

Balance at the beginning of the year 449.74 414.22

Benefits paid (7.44) (7.07)

Current service cost 14.15 16.95

Interest cost 34.81 30.39

Actuarial loss/(gain) on obligation (17.41) (4.75)

Balance at the end of the year 473.85 449.74

Expense recognised in profit and loss

Current service cost 14.15 16.95

Interest cost 34.81 30.39

Total 48.96 47.34

Remeasurements recognised in other comprehensive income

Actuarial (gain) / loss on defined benefit obligation (17.41) (4.75)

Total (17.41) (4.75)

- Retirement settlement benefits ( in Crores)

Particulars 31st March 2019 31st March 2018

Reconciliation of present value of defined benefit obligation

Balance at the beginning of the year 47.41 45.46

Benefits paid (2.94) (2.80)

Current service cost 3.95 2.18

Interest cost 3.69 3.26

Actuarial loss/(gain) on obligation 2.71 (0.69)

Balance at the end of the year 54.82 47.41

Expense recognised in profit and loss

Current service cost 3.95 2.18

Interest cost 3.69 3.26

Total 7.64 5.44

Remeasurements recognised in other comprehensive income

Actuarial (gain) / loss on defined benefit obligation 2.71 (0.69)

Total 2.71 (0.69)

184

- Farewell scheme ( in Crores)

Particulars 31st March 2019 31st March 2018

Reconciliation of present value of defined benefit obligationBalance at the beginning of the year 40.32 37.85Benefits paid (1.52) (1.17)Current service cost 1.01 0.94Interest cost 3.04 2.76Actuarial loss/(gain) on obligation (1.80) (0.06)Balance at the end of the year 41.05 40.32Expense recognised in profit and lossCurrent service cost 1.01 0.94Interest cost 3.04 2.76Total 4.05 3.70Remeasurements recognised in other comprehensive incomeActuarial (gain) / loss on defined benefit obligation (1.80) (0.06)Total (1.80) (0.06)

Actuarial assumptions in case of Holding CompanyPrincipal actuarial assumptions at the reporting date (expressed as weighted averages): ( in Crores)

Particulars 31st March 2019 31st March 2018

Discount rate 7.57% 7.68%

Rate of increase in compensation levels 7.00% 7.00%

Expected return on plan assets 7.57% 7.00%

Medical Inflation Rate 5.00% 5.00%

Actuarial assumptions in case of Subsidiary Company ( in Crores)

Particulars 31st March 2019 31st March 2018

Discount rate- Eastern Investment Limited 7.70% 7.65%- The Bisra Stone Lime Company Limited 7.20% 7.30%- The Orissa Minerals DevelopmentCompany Limited 7.20% 7.30%Expected rate (s) of salary increase- Eastern Investment Limited 5.00% 5.00%- The Bisra Stone Lime Company Limited 5.00% 5.00%- The Orissa Minerals DevelopmentCompany Limited 5.00% 5.00%Withdrawal Rate- Eastern Investment Limited 3% at younger ages 3% at younger ages

reducing to1% at older ages reducing to1% at older ages- The Bisra Stone Lime Company Limited 3% at younger ages 3% at younger ages

reducing to 2% at older ages reducing to 2% at older ages- The Orissa Minerals Development 3% at younger ages 3% at younger ages Company Limited reducing to 1% at older ages reducing to 1% at older ages

Sensitivity analysisReasonably possible changes at the reporting date to one of the relevant actuarial assumptions, holding other assumptions constant, wouldhave affected the defined benefit obligation and current service cost by the amounts shown below:

185

- Gratuity ( in Crore)

31st March 2019 31st March 2018Increase Decrease Increase Decrease

1. Effect of 0.5% Change in the assumed discount rate

- Defined benefit obligation (50.29) 53.60 (47.86) 51.04

- Current service cost - - 23.95 26.79

2. Effect of 0.5% Change in the assumed salary escalation rate

- Defined benefit obligation 24.40 (27.01) 23.58 (27.24)

- Current service cost - - 24.16 27.03

Particulars

- Retirement medical benefits ( in Crore)

31st March 2019 31st March 2018Increase Decrease Increase Decrease

1. Effect of 0.5% Change in the assumed discount rate

- Defined benefit obligation (36.89) 40.97 (34.43) 38.66

- Current service cost - - 0.04 3.04

2. Effect of 0.5% Change in the assumed medical inflation rate

- Defined benefit obligation 42.39 (38.62) 40.17 (35.94)

- Current service cost - - 3.10 (0.02)

Particulars

- Retirement settlement benefits ( in Crore)

31st March 2019 31st March 2018Increase Decrease Increase Decrease

Effect of 0.5% Change in the assumed discount rate- Defined benefit obligation (1.60) 1.70 (1.64) 1.74- Current service cost - - 0.02 0.18

Particulars

Particulars

Although the analysis does not take account of the full distribution of cash flows expected under the plan, it doesprovide an approximation of the sensitivity of the assumptions shown.

(IV) Provident fund :The Group's contribution paid/ payable during the year to Provident Funds are recognised in the Statement of Profit& Loss. The company's Provident Fund Trusts are exempted under section 17 of the Employees' Provident Fundand Miscellaneous Provisions Act, 1952. The conditions for grant of exemption stipulated that the employer shallmake 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 andreturn on investment. This Note is to be read with Note No 35 (ii) (a).

186

- Farewell scheme ( in Crore)

31st March 2019 31st March 2018Increase Decrease Increase Decrease

Effect of 0.5% Change in the assumed discount rate- Defined benefit obligation (1.38) 1.54 (1.77) 1.92- Current service cost - - 0.02 0.11

The Holding Company does not have any potentially dilutive equity shares outstanding during the year.

38 Leases

A. Operating lease in the capacity of lessor

The Group has leased out facility under cancellable operating lease agreements. Hence,the Group is notrequired to disclose the future lease income as per the provisions of Ind AS 17.

B. Operating lease in the capacity of lesseeThe Group has taken on lease various offices under cancellable operating lease agreements. Hence, theGroup is not required to disclose the future lease payments as per the provisions of Ind AS 17.

36 Capital managementThe Group aims to maintain a strong capital base so as to maintain the confidence of investor, creditor and marketand to sustain future development of the business.The Group monitors capital using a ratio of 'adjusted net debt' to 'adjusted equity'. For this purpose, adjusted netdebt is defined as total liabilities, comprising interest-bearing loans and borrowings and obligations under financeleases, less cash and cash equivalents. Adjusted equity comprises all components of equity other than amountsaccumulated in the effective portion of cash flow hedges and cost of hedging, if any.

The calculations of profit attributable to equity shareholders and weighted average number of equity sharesoutstanding for purposes of basic earnings per share calculation are as follows:

37 Earnings per share (not annualised)

Basic earnings per share

Basic earnings per share is calculated by dividing:

- the profit attributable to owners of the group

- by the weighted average number of equity shares outstanding during the financial year:

The calculations of profit attributable to equity shareholders and weighted average number of equity sharesoutstanding for purposes of basic earnings per share calculation are as follows:

The Group’s adjusted net debt to equity ratio at the reporting dates were as follows: ( in Crores)

Particulars 31st March 2019 31st March 2018

Total net debt 19,714.59 16,715.62

Less: cash and cash equivalents 476.17 879.28

Adjusted net debt 19,238.41 15,836.34

Total equity 7,342.67 7,668.91

Less: Cost of hedging - -

Adjusted equity 7,342.67 7,668.91

Adjusted net debt to adjusted equity ratio 2.62 2.07

( in Crores)

Particulars 31st March 2019 31st March 2018

i. Profit/ (loss) attributable to equity shareholders ( in Crore) (55.40) (1,431.12)

ii. Weighted average number of Equity Shares outstanding

during the year 4,889,846,200 4,889,846,200

iii. Face value per share ( ) 10 10

Basic and Diluted EPS ( ) (0.11) (2.93)

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189

B. Measurement of fair values

The following table shows the valuation techniques used in measuring Level 2 and Level 3 fair values for financialinstruments measured at fair value in the balance sheet, as well as the significant unobservable inputs used.

Significant Inter-relationship betweenType Valuation technique unobservable significant unobservable

input inputs and fair valuemeasurement

Forward exchange Forward pricing: The fair value is Not applicable Not applicablecontracts determined using quoted forward exchange rates at the reporting date.Interest rate swaps Swap models: The fair value is Not applicable Not applicable

determined using quoted swaprates at the reporting date.

Financial liabilities Discounted cash flows: The Not applicable Not applicablevaluation model considers thepresent value of expected payment,discounted using a risk-adjusteddiscount rate.

C. Financial risk managementRisk management frameworkThe Group is exposed to various risk in relation to financial instruments. The Group's financial asset andliabilities by category are summarised in note 39A.'The main types of risks are market risk, credit risk andliquidity risk.The Group’s risk management is coordinated at its headquarters, in close cooperation with theboard of directors, and focuses on actively securing the Group’s short to medium-term cash flows by minimisingthe exposure to volatile financial markets. Long-term financial investments are managed to generate lastingreturns. The Group does not actively engage in the trading of financial assets for speculative purposes nordoes it write options. The most significant financial risks to which the Group is exposed are described below.

The Group has exposure to the following risks arising from financial instruments:

i) credit risk

ii) liquidity risk

iii) market risk

i) Credit riskCredit risk is the risk of financial loss to the Group if a customer or counterparty to a financial instrument failsto meet its contractual obligations, and arises principally from the Group's receivables from customers andloans.

The carrying amounts of financial assets represent the maximum credit risk exposure.

Trade receivables and loans

The Group’s exposure to credit risk is influenced mainly by the individual characteristics of each customer.However, management also considers the factors that may influence the credit risk of its customer base,including the default risk associated with the industry in which customers operate.

Loss rates are calculated using a ‘roll rate’ method based on the probability of a receivable progressing throughsuccessive stages of delinquency to write-off. Roll rates are calculated separately for exposures in differentsegments based on the common credit risk characteristics.

Movements in the allowance for impairment in respect of trade receivables and loans.

190

( in Crores)

Particulars 31st March 2019 31st March 2018

Balance at 1st April 23.31 23.46Net measurement of loss allowance 5.21 (0.15)

Balance at 31st March 28.52 23.31

Cash and cash equivalents

The Group holds cash and cash equivalents of 476.17 crore at 31st March 2019 (31st March 2018: 879.28crore). The cash and cash equivalents are only held with highly rated banks.

Impairment on cash and cash equivalents has been measured on the 12-month expected loss basis andreflects the short maturities of the exposures. The Group considers that its cash and cash equivalents have lowcredit risk based on the external credit ratings of the counterparties

Derivatives The derivatives are only entered into with highly rated scheduled banks.

ii) Liquidity riskLiquidity risk is the risk that the Group will encounter difficulty in meeting the obligations associated with itsfinancial liabilities that are settled by delivering cash or another financial asset. The Group’s approach tomanaging liquidity is to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities whenthey are due, under both normal and stressed conditions, without incurring unacceptable losses or riskingdamage to the Group’s reputation.

The Group aims to maintain the level of its cash and cash equivalents at an amount in excess of expected cashoutflows on financial liabilities (other than trade payables). The Group also monitors the level of expected cashinflows on trade receivables and loans together with expected cash outflows on trade payables and otherfinancial liabilities.

Exposure to liquidity riskThe following are the remaining contractual maturities of long term financial liabilities at the reporting date. Theamounts reflect the principal amounts that are gross and undiscounted, and exclude the impact of nettingagreementsIn case of Holding Co.

31st

March 2019 ( in Crore)

The movement in the allowance for impairment in respect of trade receivables and loans is as follows:

Contractual Cashflows

Carrying Total 12months 1-2 Years 2-5 Years More thanAmount or less 5 years

Non-derivative financial liabilities

Secured bank loans 9,309.26 9,309.26 - 613.71 3,370.96 5,324.59

Unsecured bank loan - - - - - -

9,309.26 9,309.26 - 613.71 3,370.96 5,324.59Derivative financial liabilities

Interest rate swaps - - - - - -

Other forward exchange contracts - - - - - -

- - - - - -

Particulars

191

Contractual CashflowsCarrying Total 12months 1-2 Years 2-5 Years More thanAmount or less 5 years

Non-derivative financial liabilitiesSecured bank loans 6,545.16 6,545.16 - 448.80 1,907.23 4,189.13

Unsecured bank loan - - - - - -

6,545.16 6,545.16 - 448.80 1,907.23 4,189.13

Derivative financial liabilitiesInterest rate swaps - - - - - -

Other forward exchange contracts 0.60 0.60 0.60 - - -

0.60 0.60 0.60 - - -

31st

March 2018 ( in Crore)

Except for these financial liabilities, it is not expected that cash flows included in the maturity analysis couldoccur significantly earlier, or at significantly different amounts.iii) Market riskMarket risk is the risk that results from changes in market prices – such as foreign exchange rates, interest ratesand equity prices – will affect the Group’s income or the value of its holdings of financial instruments. Theobjective of market risk management is to manage and control market risk exposures within acceptableparameters, while optimising the return.The Group uses derivatives to manage market risks.

Currency risk

The Group is exposed to currency risk to the extent that there is a mismatch between the currencies in whichsales, purchases and borrowings are denominated. The functional currency for the Group is The currenciesin which these transactions are primarily denominated is ,which is also theGroup's functional and presentationcurrency.

The Group uses forward exchange contracts to hedge its currency risk, most with a maturity of less than oneyear from the reporting date.

Currency risks related to the principal amounts of the US dollar bank loan, which have been fully hedged usingforward contracts that mature on the same dates as the loans are due for repayment. These contracts aredesignated as derivative contracts.

Interest rate risk

The Group aims to minimise its interest rate risk exposure by maintaining a balance of fixed/ floating rate ofinterest.

Exposure to interest rate risk

The interest rate profile of the Group's interest-bearing financial instruments as reported to management is asfollows:

( in Crores)

Particulars 31st March 2019 31st March 2018

Fixed rate instrumentsFinancial assets 143.37 222.93Financial liabilities 6,723.74 6,496.16

6,867.11 6,719.10Variable rate instrumentsFinancial assets - -Financial liabilities 12,990.82 10,219.45

12,990.82 10,219.45

Particulars

192

Cash flow sensitivity analysis for variable-rate instrumentsA reasonably possible change of 100 basis points in interest rates at the reporting date would have increased /(decreased) equity and profit or loss by the amounts shown below. This analysis assumes that all other variables, inparticular foreign currency exchange rates, remain constant.

Profit or loss Equity, pre tax100 bp increase 100 bp decrease 100 bp increase 100 bp decrease

31st March 2019Variable-rate instruments (129.90) 129.90 (129.90) 129.9031st March 2018Variable-rate instruments (102.19) (102.19) (102.19) 102.19

40 Contingent liabilities and commitmentsContingent liabilitiesA. Claims against Group not acknowledged as debts ( in Crores)

Particulars 31st March 2019 31st March 2018

Contractors/suppliers/customersCPSE 60.67 1.51

Other than CPSE 803.94 674.82Local Authorities - state govt. 1,701.91 1,762.16Sales tax matters* 1,439.13 1,020.48Income tax*** 137.55 173.28Customs / excise duty 254.84 255.82Others

CPSE - - Other than CPSE 572.85 556.49

Total 4,970.89 4,444.56

* No liability is expected to arise as the movement of goods were on stock transfer and sales tax is paid oneventual sales.

** In case of Holding Company, Contingent Liabilities as on 31.03.2019 are after considering a reduction of 150.94 Crore from balance as on 31.03.2018

*** In case of Holding Company, 36.24 Core reduced during the year based on relief given by CIT(A)-9 Hyderabadvide common order dt.30.04.2019 for AY 2012-13 to AY 2014-15 inline with IND AS-10.

^ In case of Holding Company, differential price as claimed by Central Coalfields Limited (CCL) for the indigenouscoking coal suppliedduring 13.01.2017 to 31.03.2017 amounting to 59.03 Crore being the amount billedover and above MOU 2016-17 agreed prices has not been accounted for. Pending settlement of dispute, theabove liability has been treated as contingent liability.

B. Claims in Courts in connection with Land Acquisition: - Amount not ascertainable

C. Liability towards reimbursement of excise duty on - Amount not ascertainablestructural works wherever applicable.

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

E. In the case of Eastern Investment Limited:-

(a) Rent and Cess on Land Revenue: The company had continued to pay Rent and Cess on Land Revenueon Lawrence Property at Bauria @ 2,012 per year till 31.03.2001 with the office of the Revenue Inspector.The company though not accepted the substantial increase in such charges from 2001-02, continued toprovide liability on the basis of claims received. In absence of any formal claim by the concerned department,amount of such claim, if any, has neither been ascertained nor considered in the accounts from the financialyear 2008 – 09 onwards.

Particulars

( in Crores)

193

A letter ref No EIL/Lawrence Property/01 dated 14-03-2018 has been issued to Block Land & Land ReformOffice with a copy to higher authority, i.e. District Land & Land Reform Office and to the next higher authority,i.e. Director of Land Records & Service . It has been requested in the letter to provide the Land Tax dues byBL&LRO for payment by EIL and also requested to consider the compensation for the land acquired by theGovt. of WB which is yet to be received in accordance with the judgment passed by Additional DistrictJudge.

Another letter dated 05-04-2018 issued to Additional District Magistrate (LR) & DLLRO, Govt. of West Bengalwith a copy to Principal Secretary and Land Reforms Commissioner, Govt. of West Bengal to expedite thematter. Subsequently, information through RTI Act has been sought on 11-Jun-18, wherein it has been askedthe due Land Tax for 49.19 acres and whether any notice for the same has been issued by the department. Areply was received on 28.06.2018 on the RTI Application which states that"" The matter of realisation of landrevenue in case o subject land does not arise and as such there is no question of raising demand of landrevenue in respect of said land

(b) Stamp Duty on Share Transfer: There is demand from Additional Commissioner of Stamp Revenue Govt of WestBengal for 0.58 Crore as regards transfer of shares from President of India in The Orissa Minerals DevelopmentCompany Ltd (OMDC) and The Bisra Stone Lime Company Ltd (BSLC) to Eastern Investments Ltd(EIL) to makeBSLC and OMDC subsidiaries of EIL. The transaction is exempted from Stamp duty and the same is communicatedto Additional Inspector General of Registration and Additional Commissioner of Stamp Revenue West Bengal videLetter No. EIL/AS/STAMP DUTY/10-2012/01 dated 17th Oct 2012 by the authorised signatory of EIL.

As there is no response to the letter of the Company till date, the amount of 0.58 Crore is shown ascontingent liability. Further correspondence was made with the Dy. Secretary, Finance (Revenue) Dept.,Govt. of W.B. on 23.02.2018 with a reminder on 11.04.2018 and on 14.05.2019 but no response has beenreceived till finalisation of Balance Sheet.

c) Income Tax : Income tax demand in respect of A.Y.2008-09 , A.Y. 2009-10 , A.Y. 2010-11 , A.Y. 2013-14 &A.Y. 2014-15 amounting to 0.52 Crore has not been deposited as the cases are pending for settlement inIncome-tax Dept. (P.Y. 0.69 Crore)

F. In the case of The Bisra Stone Lime Company Limited:

( a) Sales tax related: Demand of 0.93 Crore (P.Y. 0.93 Crore) in respect of Odisha Sales Tax and Odisha EntryTax, challenged in appeal against which a sum of 0.60 Crore ( 0.60 Crore) is deposited with the Sales TaxAuthority, balance 0.33 Crore (P.Y. 0.33 Crore) remaining unpaid.

(b) Stamp Duty related: Demand towards stamp duty amounting to 99.42 Crore have been received from Sub-Divisional Magistrate, Sundargarh, as per provision of Indian Stamp (Odisha Amendment) Act 2013, howeverall the demands raised under the said Act has been stayed by The Hon’ble Orissa High Court vide its orderdated 12th July 2013.Subsequently in the F.Y. 2015-16 Sub-District Magistrate, Sundargarh, has raised ademand as per Indian Stamp (Odisha Amendment) Act 2012 for the mine lease period up to 31/03/2020,which has been duly paid by the Company and the mining operations since then started. Since the originaldemand & matter is still sub-judice and the new or revised demand as raised by the same authority was paidby the company, provision for demand of original stamp duty have not been made and the said are notacknowledged as debts.

(c) Provident Fund related : Provident Fund Claim of 1.03 Crore which is as per letter dated 21.08.2014. RegionalProvident Fund Commissioner has raised a demand of 1.03 Crore towards differential Provident Fundcontribution, being the difference between 12% & 10% for the period from September, 2009 to October, 2010u/s 7A & 7Q of Employees Provident Fund & Miscellaneous Provisions Act, 1952 on the ground that contribution

194

rate of 12% is applicable instead of 10%, since the Company had reported profit in the year 2009-10. TheCompany had declared surplus in the year 2009-10, as a result of waiver of accumulated interest on GovernmentLoan in terms of approved Capital Restructuring Scheme. The profit being notional and not supported by anycash inflow, the demand has been contested before the Honourable High Court of Odisha. Subsequently, asper the directives of The Employees Provident Fund Appellate Tribunal, New Delhi vide its Order referenceATA No.286 (10) 2014 dated 03-04-2014 a Bank Guarantee was issued on for 30.93 Lakhs favoring RegionalProvident Fund Commissioner, Rourkela.

(d) Bank Guarantee : Bank Guarantee issued on behalf of the Company 8.58 Crore (P.Y. 9.42 crore).

e) The Company has received a show cause notice for 40.90 Crore form Deputy Director of Mines, Rourkela forillegal and excess mining during the period 2000-01 to 2010-11. .

(f) Non-Provisioning of Interest amounting to 0.71 Crore (P.Y. 1.37 Crore) towards award decided by variouscourts against creditors of the Company

(g) As informed to us, the Company BSLC has taken measures to ensure legal compliances and filing the annuallegal compliance report. The annual legal compliance report is placed before the Board for review. Further,reports on the progress of Arbitration cases are put up for information. Moreover, an internal reporting systemhas been introduced to indicate the progress of cases in various Courts along with their status from time totime. The age-wise analysis of pending cases is given below. As explained to us the reason for pendency isdue to usual delay in court proceedings.

G. In the case of The Orissa Minerals Development Company Limited:

(a) Arbitration: Arbitration Cases include 3.21 Crore Claims of contractors for supply of materials/services pendingwith arbitration/courts which have arisen in the ordinary course of business. The Company reasonably expectthat these legal actions when ultimately concluded and determined will be in favour of the Company and willnot have material adverse effect on the Company's results of operation or financial position.

Commitments ( in Crores)

High Court Other Courts Tahsildar, Birmitrapur

Year No. Year No. Year No.1996 1 1990 2 2010 12000 1 1991 1 2011 22001 1 2003 1 2019 142002 0 2007 12003 3 2008 62009 2 2009 12013 2 2013 02014 1 2014 0 2nd Civil Judge. Sr.

Division,Barasat,Kolkata2015 1 2017 22017 2 2018 12 Year No.2018 1 2019 8 2016 1

Regional Labour Commissioner, Revision Authority Ministry of Mines, CGIT, Cum Labour Rourkela Delhi Court, Bhubaneswar

2014 1 Year No. Year No.2015 1 2015 1 2004 1Supreme Court of India 2009 1

2014 22018 1

195

Commitments ( in Crores)

Particulars 31st March 2019 31st March 2018

Estimated amount of contracts remaining to be executed oncapital account and not provided 2,909.13 2,786.55Total 2,909.13 2,786.55

(b) Bank Guarantee is given to Indian Bureau of Mines 23.87 Crore.

(c) (i) For Demand from various statutory authorities towards income tax, sales tax, excise duty, custom duty,service tax, entry tax and other government levies for 2.37 Crore and 0.26 Crore respectively. The Companyis contesting the demand at appellate authorities. It is expected that the ultimate outcome of these proceedingswill be in favour of the Company and will not have any material adverse effect on the Company's financialposition and results of operation. (ii) The Income Tax cases for the AY 2008-09, 2009-10 & 2010-11 arepending at Income Tax Tribumal amounts to 420.86 Crore.

(d) Pursuant to the amendments of the Orissa Land Reforms Act, the Sub-Collector, Champua had served aNotice against the Company for alleged unauthorized possession of 10.79 acres of leasehold land on theground that the said land belongs to Adivasis and based on that, the Revenue Inspector asked OMDC tovacate the land. The Company filed an appeal before the Addl. District Magistrate but the appeal was notallowed. During April, 1999 the Company filed a writ application and obtained Stay Order from the Hon’ble HighCourt of Orissa to maintain the status quo about the possession of the land until further order. No specificliability could be ascertained.

(e) Out of the Total Claim of Odisha Govt. demand for BPMEL Leases with interest amounting 1067.98 crore(PY 887.05 crore) have been shown in contingent liability as the cases are pending in different courts of law.

Others :1. (i) Holding Co.,RINL and Air Liquide India Holding Private Limited (ALIH) entered (November 2010) into contract

for supply for 15 years period of Oxygen and Nitrogen gases and liquids primarily for captive consumption toRINL by establishment of Cryogenic Air Separation Plant on Build, Own and Operate (BOO) basis with anoption to transfer.ALIH vide letter dated 16 December 2014, terminated the contract and proposed to transfer the ownership ofASUs to RINL subject to payment of around 455 crore. “But, RINL rejected (6 January 2015) terminationnotice of ALIH and insisted ALIH to perform its obligations under BOO Contract. Since ALIH did not withdrawtermination notice, RINL was to agree for in principle takeover subject to inter alia, technical audit of ASUs. Inspite several meetings took place and correspondence exchanged to finalise modalities for takeover byRINL, no agreement could be reached. Hence, RINL was compelled to invoke (October 2017) arbitration.RINL appointed its nominee Arbitrator, Dr ArijitPasayat, Retired Judge, the Supreme Court of India. ALIHappointed its nominee Arbitrator, Mr Harish Salve, Senior Advocate and the two appointed nominees nominatedthe Presiding Arbitrator, Mr Michael Black QC. Above three Arbitrators constituted Arbitral Tribunal in December2017. As per time schedule provided (February 2018) by Arbitral Tribunal, final hearing was scheduled inJanuary/February 2019. RINL filed (April 2018) its Statement of Claims (comprising six different claims)before Arbitral Tribunal seeking three alternative reliefs, which are:i. Specific performance of entire BOO Contract for agreed 15 years and terms and conditions of the BOO

Contract with payment of damages to the tune of 1935.64 crore plus accrued interest.ii. Takeover of BOO plant by RINL subject to reasonable and fair valuation and payment of damages to

the tune of 1935.64 crore plus accrued interest or

iii. Dismantle ASUs and take back by ALIH and payment of total damages of 3,276.638 Crore. RINLfurnished (January 2019) Amended Statement of Claims on the basis that RINL’s experts concludedthat production of gases and liquids in HP GOX mode from ASUs installed by ALIH would be Nil and thiswarranted revision of three out of six claims enhancing total claims value to 2350.024 crore plusaccrued interest (for alternatives i or ii) and 3701.28 crore (for alternative iii).The application is stillpending and no final orders have been passed on the proposed amendments

ALIH filed (May 2018) its Statement of Defence and Counter Claims seeking alternative reliefs, which are

a) In case of takeover of the BOO Plant by RINL, payment of actual cost of Production Facility of 764.89crore + To Be Assessed (TBA) or reimbursement of Loss of Revenue of 1426.84 crore + TBA or

196

b) In case of no takeover of BOO Plant by RINL, payment of actual cost of Production Facility of 734.02 crore+ To Be Assessed (TBA) or reimbursement of Loss of Revenue of 1426.84 crore + TBA .“Thereafter, ALIHsought (June 2018) seeking directions from the Arbitral Tribunal enabling it to carry out commissioning activitiesand upon stabilization, effectuating interim handover of the Production Facility to RINL subject to payment ofa sum of 250 crore. Same was dismissed by the tribunal in the month of June,2018.“The evidentiaryhearing on issues related to liability was concluded in April 2019 and the award on liability issues has beenreserved by the Tribunal.

2. In the case of The Bisra Stone Lime Company Limited:-

(a) Term Deposits with Scheduled Banks of 8.58 crore(PY: 9.42 Crore) disclosed under Non-current otherfinancial assets(Note 8) and Cash and cash equivalents (Note 13) are pledged with bank against 100%Margin Money towards Bank Guarantees

(b) Provision for Royalty amounting to 0.94 Crore is lying for more than 10 years which was created in the year2005-06 against shortage of Stock which was found on Physical Verification. In absence of any details/confirmation genuiness of this liability is doubtful in nature.

(c ) The Company has right to mine over 270.832 hectare of land till March, 2020. It has already mined over243.386 hectare of land till January 2015.As per the Mineral Conservation and Development Rules 2017 theCompany has given financial assurance in form of bank Guarantee of 8.12 Crore in regard to ProgressiveMine Closure Plan and final closure plan. The Company had provided for Mine Closure Plan for 1.28 Croretill March 2018 having short provision of 6.03 Crore. During the year a sum of 6.44 Crore has beenprovided against the same.

(d) BSLC was accommodated with the loan by EIL, the Holding Company to tide over financial crisis due toclosure of the mines for the period during 2011-12.

Principal amount of 13.75 crore disbursed till 31.3.13 was repayble in 120 monthly installments by BSLCstarting from Apr-2013 and the principal amount of 1.25 crore disbursed after 31.3.13 was repayble in 120equal monthly installments following the month of disbursement.

Simple interest at RBI interest rate payable on monthly basis starting next month from the month ofdisbursement. The Company defaulted in repaying principal amount of term loan and interest thereon to itsholding company Eastern Investments Ltd (EIL). The Company was accommodated with the loan to tide overfinancial crisis due to closure of the mines for some period during 2011-12. As per the terms, principal isrepayable after one year from the resumption of mining operations in 120 equal monthly installments. Simpleinterest on the loan is payable on monthly basis at RBI interest rate prevailing on the date of disbursement forthe year of disbursement and thereafter for subsequent years at the prevailing RBI interest rate as on 1stApril of that year. The loan was disbursed during 2012-13 on different dates aggregating to 13.75 Crore andalso in April 2013 for 1.25 Crore. Effectively principal repayment falls due from April 2013 in respectdisbursements during 2012-13 and from May 2013 for the disbursement in April 2013. Due to acute financialcrisis, the Company could not pay any monthly installment towards repayment of principal. Aggregate amountof principal falling due for payment but remaining unpaid as at the year-end is 10.49 Crore (P.Y. 8.99 Crore).The Company could not repay interest since June 2013. The holding company EIL a Non Banking FinancialCompany declared the entire loan as Non Performing Asset as on 30th Sep 2014 and stopped recognizinginterest income thereon from October 2014. The Company has requested EIL to waive the loan amount aswell as interest thereon in view of poor financial status of the company. The amount in default towardsrepayment of interest as at the year-end is 6.51 Crore (P.Y. 5.58 Crore).

(e) The Company is not in a position to pay any monthly installment towards repayment of principal due tofinancial crisis. Aggregate amount of principal falling due for payment but remaining unpaid as at the year-end is 10.49 Crore (P.Y. 8.99 Crore). The Company could not repay interest since June 2013. The holdingcompany EIL a Non Banking Financial Company declared the entire loan as Non Performing Asset as on 30thSep 2014 and stopped recognizing interest income thereon from October 2014. The Company has requestedEIL to waive the loan amount as well as interest thereon in view of poor financial status of the company. Theamount in default towards repayment of interest as at the year-end is 6.51 Crore (P.Y. 5.58 Crore).

(f) As per Tripartite Memorandum of Settlement dated 30th December 2009 with Recognised Workmen’s Unionand Regional Labour Commissioner, the wage revision is due from 1st January 2012. However, in view ofOffice Memorandum of Department of Public Enterprise Nos.2(11)/96-DPE(WC)-GL-1 dated 11th February

197

2004 and 2(70)/08-DPE(WC) dated 26th November 2008 the Company is barred to carry out wage revisiondue to recurring losses, negative worth and inability to pay incremental wages out of its own sources. In viewof the above, no provision on account of pay revision has been made in the accounts. The possibility of wagerevision being remote, the same is not considered even as Contingent Liability.

(g) The Company pursuant to approval of Environmental Clearance from competent authority for enhancementof its annual production capacity from 0.96 MTPA to 5.26 MTPA, has received a total outlay plan of 5.50Crore towards cost of implementation of site specific wild life conservation. The Company, as a matter ofprudence has made necessary provision in the books of account accordingly.

(h) The Company has received an order from Hon’ble High Court of Odhisa in case of O.J.C. No. 9561/2000 BSLCo. Ltd Vs Daharu Oram & Others related to eviction proceedings over 2.33 acers of land. As per the saidorder the Company have to pay 0.68 Crore to the legal heir of the deceased claimant for 1.48 acres of landover which Executive Director’s Bungalow has been constructed and to vacate the remaining 0.85 acres ofvacant Land.“The Company has approached to OSD (LR) Rourkela to intimate the details of legal heirs towhom compensation is to be paid. In absence of details of present legal heirs, the company has neitherprovided any liability for payment of compensation nor has any addition been made to the asset under thehead Land. However this is not going to affect the actual loss of the company for the year.

(i) Balance Confirmation(BSLC)

The Company has a system of sending request letters to all debtors and creditors for confirming their balanceas appearing in the books of the Company with a remark that unless the reply is received within a cut-off date,the balance intimated will be treated as confirmed by the debtors/creditors. However during the year onlysome written confirmation was received from any of such parties. In the opinion of the management and tothe best of their knowledge and belief, the receivable or payable values of the assets or liabilities in theordinary course of business will not be less than the amounts at which they are stated in the Balance Sheet.There are balances both debit and credit lying for more than 3 years under the heads of Trade Receivables,Trade Payables and other current and non-current liabilities and assets and Loans & Advances. The companyis not in a position to confirm the actual realisability of assets and genuiness of liability to pay as no writtenconfirmation from any of the party is available.

(j) Term Deposit (BSLC)

Term Deposits with Scheduled Banks disclosed under Cash and Bank balances (Note 14.00) are pledgedwith bank against 100% Margin Money towards Bank Guarantees as detailed below:

Amount Reason Favouring

Date ( in Crore)

2018-19 2017-18

04/06/2013 - 0.83 Scheme of Mining including Progressive Regional Controller of Mines,

Mines Closure Plan, Indian Bureau of Mines, Bhubaneswar.

01/09/2014 0.15 0.15 Demand Notice by PFAT towards PF dues

u/s 14-B of EPF Act, 1952 for the period from APFC, ROURKELA

03/2003 to 09/2007, for delay. 23/09/2014 0.31 0.31 Demand Notice by RPFC, ROURKELA

towards differential 2% PF dues u/s 7-A of EPF RPFC, ROURKELA

Act, 1952 for the period from 06/2009 to 10/2010,

due to notional profit during 2009-10.

12/03/2018 8.12 8.12 Scheme of Mining including Regional Controller of Mines, Indianprogressive mining Bureau of Mines, Bhubaneswar.

198

( in Crores)

Particulars 31st March 2019 31st March 2018

Percentage ownership interest 50% 50%

Non-current assets 1.66 1.67

Curent assets (including cash and cash equivalents –

31st March 2019: 0.02 crore 31st March 2018: 0.02 crore) 0.03 0.02

Non-current liabilities - -

Current liabilities (Other financial liabilities) (1.55) (1.55)

Net assets 0.14 0.13

Group's share of net assets (50%) 0.07 0.07

Carrying amount of interest in joint venture 0.07 0.07

3. In case of The Orissa Minerals Development Co.Ltd :

(a) Term Deposits with Scheduled Banks of 6.57 crore(PY: 5.40 Crore) disclosed under Cash and cashequivalents (Note 13) are pledged with bank against Bank Guarantees for IBM Bhuwaneswar for scheme ofmining including progressive mines closure plan.

(b) Due to non-renewal of mining leases in the name of the Company, there are no operations carried out by theCompany relating to mining activities.

4. In case of International Coal Ventures Limited (ICVL) :

ICVL has given Corporate guarantee to EXIM Bank on behalf of ICVL Mauritius,a wholly owned subsidiary ofICVL to secure a short term working capital loan of US$ 30 million to meet working capital requirement ofMozambique operations.The loan was taken in the FY 2015-16.the loan has been renewed for a period of twoyears in December,2017.

A. Joint Venture

i) RIN MOIL Ferro Alloys Private Limited is a joint arrangement in which the Group has joint control and a 50%ownership interets. It is principally engaged in the supply of ferro manganese and silico maganese. RIN MOILis structured as a separate legal entity and the Group has an interest in the net assets of the entity. Accordingly,the Group has classfiied its interest in RIN MOIL as a joint venture. The company has not commenced commercialoperations.

The following table summarises the financial information of RINLMOIL Ferro Alloys Pvt Ltd and the carryingamount of the Group’s interest in the entity.

41 Equity accounted investees ( in Crores)

Particulars Note 31st March 2019 31st March 2018

Interest in Joint venture See (A) below 4.04 3.45Interest in Associates See (B) below 559.37 536.43

199

( in Crores)

Particulars 31st March 2019 31st March 2018

Revenue - -Interest income 0.01 0.00Depreciation and amortisation expense 0.01 0.01Income tax expense - -Other Expenses 0.01 0.01Profit/(loss) (0.01) (0.02)Other comprehensive income - -Total comprehensive income (0.01) (0.02)Group's share of profit (50%) (0.00) (0.01)Group's share of OCI (50%) - -Group's share of total comprehensive income (50%) (0.00) (0.01)

ii) RINL Powergrid TLT Private Limited (RPTPL) is a joint arrangement in which the Group has joint control anda 50% ownership interest. RPTPL has been incorporated in the financial year 2015-16. It has been establishedfor setting up a transmission line tower manufacturing unit (including Research & Development). RPTPL shallmanufacture transmission line towers for supplying to various customers in India and abroad.The companyhas not commenced commercial operations.

( in Crores)

Particulars 31st March 2019 31st March 2018

Percentage ownership interest 50% 50%Non-current assets 8.30 8.30Curent assets (including cash and cash equivalents –31st March 2019: 0.20 crore 31st March 2018: 0.18 crore) 0.20 0.18Share application money pending allotment - (0.60)Current liabilities (including other current financial liabilities –31st March 2019: 0.54 crore 31st March 2018: 1.11 crore) (0.56) (1.11)Net assets 7.94 6.77Group's share of net assets (50%) 3.97 3.39Carrying amount of interest in joint venture 3.97 3.39

( in Crores)

Particulars 31st March 2019 31st March 2018Revenue - -Depreciation and amortisation expense 0.00 0.00Interest income 0.00 0.00Interest expense 0.00 0.00Other Expenses 0.03 0.02Income tax expense 0.00 0.00Profit/(loss) (0.03) (0.03)Other comprehensive income - -Total comprehensive income (0.03) (0.03)Group's share of profit (50%) (0.01) (0.01)Group's share of OCI (50%) - -Group's share of total comprehensive income (50%) (0.01) (0.01)

Note: Subsequent to the decision of Board of M/s Power Grid Corporation Ltd for the closure of Joint venture-RINL Powergrid TLT Private Ltd, Board of RINL in the meeting on 08.03.19 also decided for winding up of aboveJV and proposal sent (13.05.2019) for approval of Ministry of Steel. Pending approval of MOS and assessment ofthe recoverable amount of the asset, impairment of investment is not currently recognised.

200

B.Associates

International Coal Ventures Limited (ICVL) was set up as a special purpose vehicle for acquistion of coalmines/ blocks overseas for securing coal supplies.

The following table summarises the financial information of ICVL and the carrying amount of the Group’sinterest in the entity.

( in Crores)

Particulars 31st March 2019 31st March 2018

Revenue - -

Depreciation and amortisation expense 0.11 0.11

Other income (33.46) (43.46)

Interest expense 107.46 6.73

Other Expenses incl Exceptional items 40.10 15.34

Income tax expense - -

Profit/(loss) (114.22) 21.28

Other comprehensive income 202.63 3.82

Total comprehensive income 88.41 25.10

Group's share of profit/(loss) (29.63) 5.52

Group's share of OCI 52.57 0.99

Group's share of total comprehensive income 22.94 6.51

( in Crores)

Particulars 31st March 2019 31st March 2018

Percentage ownership interest 25.94% 25.94%

Non-current assets 2,370.98 2,233.33

Curent assets (including cash and cash equivalents – 31st

March 2019: 18.25 crore 31st March 2018: 27.02 crore) 83.53 96.60

Non-current liabilities (17.00) (15.98)

Current liabilities (current financial liabilities – 31st March

2019: 281.33 crore 31st March 2018: 246.15 crore) (281.42) (246.27)

Net assets 2,156.09 2,067.68

Group's share of net assets 559.37 536.43

Carrying amount of interest in associate 559.37 536.43

201

42 Non-controlling interests

The following table summarises the information relating to Group's subsidary that has material NCI, beforeany intra-group eliminations

43 Related partiesA. List of related parties and nature of relationship

Name of the related party Nature of relationship

RINMOIL Ferro Alloys Pvt Ltd Joint venturesRINL Powergrid TLT Pvt Ltd Joint venturesInternational Coal Ventures Pvt Ltd (ICVL) AssociateMINAS DE BENGA LIMITADA Joint Venture of ICVL

B-I. Key Management personnel as on 31st March 2019

Name of the related party Nature of relationship

Shri P K Rath Chairman-cum-Managing Director

Shri P Raychaudhury Director (Commercial)

Shri Kishore Chandra Das Director (Personnel)

Shri V V Venugopal Rao Director (Finance) & CFO

B-II. Independent Directors as on 31st March 2019

Name of the related party Nature of relationship

Shri S K Mishra Independent Director

Shri Sunil Gupta Independent Director

Shri Ashwini Mehra Independent Director

Eastern Investments Limited ( in Crores)

Particulars 31st March 2019 31st March 2018

NCI percentage 49% 49%Non-current assets 285.19 127.98Current assets 434.53 913.41Non-current liabilities (23.70) (24.12)Current liabilities (677.03) (517.80)Net assets (15.20) 225.16NCI in subsidaries books 34.19 274.30Net assets attributable to NCI 26.74 384.63Revenue 91.91 96.96Profit (479.91) (264.25)OCI (0.49) 0.39Total comprehensive income (480.39) (263.86)Profit allocated to NCI (357.49) (196.70)OCI allocated to NCI (0.36) 0.29Total comprehensive income allocated to NCI (357.85) (196.41)Cash-flow from (used in) operating activities (228.79) 6.96Cash-flow from (used in) investing activities (125.57) 323.91Cash-flow from (used in) financing activities (2.56) (0.95)Net increase (decrease) in cash & cash equivalents (356.92) 329.92

202

C. Post employment plans of Group

Name of the related party Country

RINL Employees' Group Gratuity Fund Trust India

Vishakhapatnam Steel Project Employees' Provident Fund Trust India

RINL Employees' Superannuation Benefit Fund Trust India

D. Transactions with related parties during the year ended ( in Crores)

Name of the related party Nature of transactions 31st March 2019 31st March 2018

International Coal Ventures Pvt Ltd ( ICVL) Receipt of equity shares - 40.00

RINL Powergrid TLT Pvt Ltd Receipt of equity shares 0.60 -

RINMOIL Ferro Alloys Pvt Ltd Receipt of equity shares 0.01 -

RINL Powergrid TLT Pvt Ltd Advance Share Capital Paid - 0.60

MINAS DE BENGA LIMITADA Purchases 346.19 54.90

International Coal Ventures Pvt Ltd ( ICVL) Salaries Recoverable 0.83 0.43

International Coal Ventures Pvt Ltd ( ICVL) Board meeting exp recoverable 0.03 0.02

RINL Employees' Group Gratuity Fund Trust Contribution towards trust 35.20 13.99

Vishakhapatnam Steel Project Employees Contribution towards trust 151.71 140.60

' Provident Fund Trust

RINL Employees' Superannuation Benefit Contribution towards trust 6.97 6.87

Fund Trust

E. Balances outstanding (unsecured & considered good) ( in Crores)

Name of the related party Details 31st March 2019 31st March 2018

International Coal Ventures (p) Ltd Investment in Associate 376.36 376.36

RINL Powergrid TLT Pvt Ltd Investment in Joint Venture 4.00 3.40

RINMOIL Ferro Alloys Pvt Ltd Investment in Joint Venture 0.11 0.10

RINMOIL Ferro Alloys Pvt Ltd Other financial assets 1.21 1.21

International Coal Ventures (p) Ltd Other financial assets 1.41 0.55

MINAS DE BENGA LIMITADA Amounts payable 51.75 0.04

RINL Employees' Group Gratuity Fund Trust Other financial liability/(asset) 555.62 545.87

Vishakhapatnam Steel Project Employees

' Provident Fund Trust Other financial liability 13.20 11.62

RINL Employees' Superannuation

Benefit Fund Trust Other financial liability 3.10 0.57

NOTE : ( in Crores)

Particulars 31st March 2019 31st March 2018

Provision for doubtful debts related to the amount Nil Nilof outstanding balances

203

F. Key management personnel compensation & Sitting Fee paid ( in Crores)

Particulars 31st March 2019 31st March 2018

Short-term employee benefits 1.36 1.55Post-employment benefits 0.20 0.46Other long-term benefits 0.11 0.45Termination benefits - -Share-based payment - -Sitting fee paid to Independent Directors 0.26 0.29

1.93 2.75

44 Operating segmentsA Basis for segmentation

An operating segment is a component of the Group that engages in business activities from which it may earnrevenues and incur expenses, including revenues and expenses that relate to transactions with any of theGroup’s other components, and for which discrete financial information is available. All operating segmentsresults are reviewed regularly by the holding Company’s Chief Executive Officer (CEO) to make decisionsabout resources to be allocated to the segments and assess their performance.The Group has two reportable segments, as described below, which are the Group's strategic business units.These business units offer different services, and are managed separately because they require differenttechnology and marketing strategies. For each of the business units, the holding Company CEO reviewsinternal management reports on at least a quarterly basis.The following summary describes the operations in each of the Group's reportable segments:Reportable segments OperationsSteel products Manufacturing of steel productsOthers Mining and investment activities

B Information about reportable segmentsInformation regarding the results of each reportable segment is included below. Performance is measuredbased on segment profit (before tax), as included in the internal management reports that are reviewed bythe Group's CEO. Segment profit is used to measure performance as management believes that suchinformation is the most relevant in evaluating the results of certain segments relative to other entities thatoperate within these industries. Inter-segment pricing is determined on an arm's length basis.

Year ended 31st March 2019 ( in Crores)

Particulars Steel products Others Total

Segment revenue:- External revenue 20,492.03 91.91 20,583.94- Inter-segment revenue - (15.09) (15.09)Total segment revenue 20,492.03 76.82 20,568.85Segment profit (loss) before income tax (336.55) (666.36) (1,002.91)Segment profit (loss) before income tax includes:Interest revenue 85.64 0.01 85.65Interest expense 1,277.61 5.22 1,282.83Depreciation and amortisation 1,057.59 15.18 1,072.77Share of profit (loss) of equity accounted investees (29.65) - (29.65)Other material non-cash items:- Impairment losses on non-financial assets - - -- Reversal of impairment losses on non financial assets - - -Segment assets 35,130.34 719.72 35,850.06Segment assets include:Investments accounted for using equity method 563.41 - 563.41Capital expenditure during the year 1,718.08 0.49 1,718.58Segment liabilities 27,806.65 700.74 28,507.39

204

Year ended 31st March 2018 ( in Crores)

Particulars Steel products Others TotalSegment revenue:- External revenue 14,607.18 96.96 14,704.14- Inter-segment revenue (16.21) (16.21)Total segment revenue 14,607.18 80.75 14,687.93Segment profit (loss) before income tax (1,905.95) (269.35) (2,175.30)Segment profit (loss) before income tax includes:Interest revenue 77.55 0.02 77.57Interest expense 938.33 1.94 940.27Depreciation and amortisation 778.26 15.22 793.48Share of profit (loss) of equity accounted investees 5.50 - 5.50Other material non-cash items: -- Impairment losses on non-financial assets - - -- Reversal of impairment losses on non financial assets - - -Segment assets 31,639.81 1,041.34 32,681.15Segment assets include:Investments accounted for using equity method 539.88 - 539.88Capital expenditure during the year 1,522.74 0.33 1,523.07Segment liabilities 24,470.31 541.92 25,012.23

C Reconciliations of information on reportable segments to Ind AS measures ( in Crores)

Particulars 31st March 2019 31st March 2018

i. RevenuesTotal revenue for reportable segments 20,568.85 14,687.93Revenue for other segments - -Elimination of inter-segment revenue 15.09 16.21Consolidated revenue 20,583.94 14,704.14

ii. Profit before taxTotal profit before tax for reportable segments (1,002.91) (2,175.30)Profit before tax for other segments - -Elimination of inter-segment profits - -Unallocated amounts:- Corporate expenses - -

Consolidated profit from continuing operations before tax (1,002.91) (2,175.30)iii. Assets

Total assets for reportable segments 35,850.06 32,681.15Assets for other segments - -Unallocated amounts - -

Consolidated total assets 35,850.06 32,681.15iv. Liabilities

Total liabilities for reportable segments 28,507.39 25,012.23Liabilities for other segments - -Unallocated amounts - -Consolidated total liabilities 28,507.39 25,012.23

205

v. Other material items31st March 2019 ( in Crores)

Particulars Reportable Adjustments Consolidatedsegments total totals

Interest revenue 88.62 2.97 85.65Interest expense 1,285.80 2.97 1,282.83Capital expenditure during the year 1,718.58 - 1,718.58Depreciation and amortisation expense 1,072.77 - 1,072.77Impairment losses on non-financial assets - - -Reversal of impairment losses on non-financial assets - - -

31st March 2018 ( in Crores) Particulars Reportable Adjustments Consolidated

segments total totalsInterest revenue 79.22 1.65 77.57Interest expense 941.92 1.65 940.27Capital expenditure during the year 1,523.07 - 1,523.07Depreciation and amortisation expense 793.48 - 793.48Impairment losses on non-financial assets - - -Reversal of impairment losses on non-financial assets - - -

D Major customerRevenue from any customer of the Group's steel products and other segments does not exceed 10% of thetotal revenue reported and hence, the management believes there are no major customers to be disclosed.

45 a) Recent Accounting Pronouncements :In March, 2019, the Ministry of Corporate Affairs (MCA) issued the Companies (Indian AccountingStandards) Amendment Rules, 2019 and Companies (Indian Accounting Standards) Second AmendmentRules, 2019, notifying Ind AS 116, ‘Leases’ amendment to certain other standards. These amendmentsare applicable to the Company from 1st April, 2019. The Company will be adopting the amendmentsfrom their effective date.

Ind AS 116, Leases:Ind AS 116 replaces IND AS 17. This Ind AS 116 introduces a single lessee accounting model. TheGroup is in the process of evaluating the impact on the Financial statements.

b) Previous year Accounting Pronouncements effect on current year accounts :i) Ind AS 115, Revenue from contracts with Customers. Ind AS 115 combines,enhances and replaces guidances on recognising the revenue with a single

standarard.During the year the Group has evaluated the impact on financial statements. There is noimpact on the Financial statements .

(ii)Appendix B to Ind AS 21, ‘Foreign currency transaction and advance consideration’: The Appendixclarifies that the date of the transaction for the purpose of determining the exchange rate to use oninitial recognition of the asset, expense or income (or part of it) is the date on which an entity initiallyrecognises the non-monetary asset or non-monetary liability arising from the payment or receipt ofadvance consideration towards such asset, expense or income. If there are multiple payments orreceipts in advance, that an entity must determine transaction date for each payment or receipts ofadvance consideration.During the year the company has evaluated the impact on financialstatements.There is no impact on the Financial statements.

c) 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 respectof balances confirmed.

d) Previous year's figures have been rearranged / regrouped wherever necessary to conform to currentyear's classification.

206

46 Additional information pursuant to paragraph 2 of Division II of Schedule III to the Companies Act 2013- ‘Generalinstructions for the preparation of consolidated financial statements’ of Division II of Schedule III

As at 31st March 2019 ( in Crores)

ParentRashtriya Ispat Nigam Limited 94.16% 7,220.96 95.66% (1,369) 94.91% 20.31 95.67% (1,348.70)Subsidiaries ( Group's share)IndianEastern Investments Limited 2.94% 225.16 4.72% (67.52) 0.46% 0.10 4.78% (67.42)Non controlling interestEastern Investments Limited 5.02% 384.63 4.53% (64.87) 1.36% 0.29 4.58% (64.58)Associates (investment as per theequity method)IndianInternational Coal Ventures 2.09% 160.08 -0.39% 5.52 4.63% 0.99 -0.46% 6.51Private LimitedJoint Ventures (investment as perthe equity method)IndianRINMOIL Ferro Alloys Private Limited 0.00% (0.03) 0.00% (0.01) 0.00% - 0.00% (0.01)RINL Powergrid TLT Private Limited 0.00% (0.01) 0.00% (0.01) 0.00% - 0.00% (0.01)Eliminations -4.20% (321.89) -4.53% 64.78 -1.36% (0.29) -4.57% 64.49

Total 100.00% 7,668.91 100.00% (1,431.12) 100.00% 21.40 100.00% (1,409.73)

Net Assets Share in profit or(loss)

Share in othercomprehensiveincome ( OCI)

Share in totalcomprehensive

incomeAs % of

consolidatednet assets

AmountAs % of

consolidatedprofit or

(loss)

AmountAs % of

consolidatedother OCI

AmountAs % of

consolidatedtotal OCI

Amount

Name of the Entity

As at 31st March 2018 ( in Crores)

ParentRashtriya Ispat Nigam Limited 100.13% 7,352.28 -174.56% 96.71 39.76% 34.61 414.76% 131.32Subsidiaries ( Group's share)IndianEastern Investments Limited -0.21% (15.20) 220.98% (122.42) -0.14% (0.12) -387.05% (122.54)Non controlling interestEastern Investments Limited 0.36% 26.74 212.31% (117.62) -0.42% (0.36) -372.64% (117.98)Associates (investment as perthe equity method) IndianInternational Coal Ventures 2.49% 183.02 53.49% (29.63) 60.39% 52.57 72.45% 22.94Private LimitedJoint Ventures (investment asper the equity method)IndianRINMOIL Ferro Alloys Private Limited 0.00% (0.04) 0.01% (0.00) 0.00% - -0.02% (0.00)RINL Powergrid TLT Private Limited 0.00% (0.03) 0.02% (0.01) 0.00% - -0.03% (0.01)Eliminations -2.8% (204.10) -212.24% 117.58 0.4% 0.36 372.51% 117.94

Total 100.00% 7,342.67 100.00% (55.40) 100.00% 87.06 100.00% 31.66

Net Assets Share in profit or(loss)

Share in othercomprehensiveincome ( OCI)

Share in totalcomprehensive

incomeAs % of

consolidatednet assets

AmountAs % of

consolidatedprofit or

(loss)

AmountAs % of

consolidatedother OCI

AmountAs % of

consolidatedtotal OCI

Amount

Name of the Entity

207

RASHTRIYRASHTRIYRASHTRIYRASHTRIYRASHTRIYA ISPA ISPA ISPA ISPA ISPAAAAAT NIGT NIGT NIGT NIGT NIGAM LIMITEDAM LIMITEDAM LIMITEDAM LIMITEDAM LIMITED

(CIN: U27109AP1982GOI003404)

Regd.Office: Administrative Building, Visakhapatnam Steel Plant (VSP),

Visakhapatnam 530 031, Andhra Pradesh

Website: www.vizagsteel.com; email: jagadeeshm@vizagsteel.com; Tel & Fax: (0891) 2518249.

N O T I C EN O T I C EN O T I C EN O T I C EN O T I C E

NOTICE is hereby given that the 37th Annual General Meeting of the Members of Rashtriya Ispat Nigam Limited isscheduled to be held at 14.00 hrs on Friday, the 13th day of September, 2019 at the Registered Office of the Company atAdministrative Building, Visakhapatnam Steel Plant, Rashtriya Ispat Nigam Limited (RINL), Visakhapatnam - 530 031,Andhra Pradesh to transact the following business:

ORDINARY BUSINESS:

1. To receive, consider and adopt the Audited Financial Statements including Consolidated Financial Statements of theCompany for the year ending with March 31, 2019, together with the Directors Report, the Reports of Auditors' andComments of the Comptroller & Auditor General of India (C & AG) thereon.

2. No dividend declaration for the Financial Year 2018-19.

3. To authorize Board of Directors of the Company to fix the Remuneration of the Statutory Auditors of the Companyappointed by Comptroller & Auditor General of India (C&AG) for the financial year 2019-20, in terms of provisions ofSection 139(5) read with Section 142 of the Companies Act, 2013 and in this regard to consider and if thought fit, topass 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 decide and fix the Remuneration, Out ofpocket expenses, Travelling expenses and other living expenses appropriately with the recommendations of AuditCommittee from time to time, for the Statutory Auditors of the Company for the financial year 2019-20, who will beappointed by the C&AG."

SPECIAL BUSINESS:

4. To appoint Shri Sunil Gupta, (DIN: 00162519) as Director of the Company and in this regard to consider and if thoughtfit, to pass with or without modification(s), the following Resolution as an Ordinary Resolution:

"RESOLVED THAT

Pursuant to the provisions of Section 149, 152,161 and other applicable provisions, if any, of the Companies Act,2013 and rules made thereunder, Shri Sunil Gupta, (DIN: 00162519) who was re-appointed as Non-Official IndependentDirector by President of India pursuant to powers vested under Article No.75 of the Articles of Association of RINL fora period of one year from the date of completion of his existing tenure i.e. 12th November, 2018 be and is herebyappointed as a Director of the Company".

5. To appoint Shri S K Mishra, (DIN: 07270083) as Director of the Company and in this regard to consider and if thoughtfit, to pass with or without modification(s), the following Resolution as an Ordinary Resolution:

"RESOLVED THAT

Pursuant to the provisions of Section 149, 152,161 and other applicable provisions, if any, of the Companies Act,2013 and rules made thereunder, Shri S K Mishra, (DIN: 07270083) who was re-appointed as Non-Official IndependentDirector by President of India pursuant to powers vested under Article No.75 of the Articles of Association of RINL fora period of one year from the date of completion of his existing tenure i.e. 26th November, 2018 be and is herebyappointed as a Director of the Company".

208

6. To appoint Shri D K Mohanty (DIN: 08520947) as Director (Commercial) of the Company and in this regard to considerand 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, 161 and other applicable provisions, if any, of the Companies Act,2013 and rules made thereunder, Shri D K Mohanty (DIN: 08520947) who was appointed as Director (Commercial) byPresident of India pursuant to powers vested under Article No.75 of the Articles of Association of RINL and assumedcharge on 01st August, 2019 be and is hereby appointed as Director (Commercial) of the Company ".

7. To ratify the remuneration of the Cost Auditors for the financial year 2019-20 and in this regard to consider and ifthought 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 read withthe Companies (Audit and Auditors) Rules, 2014 (including any statutory modification(s) or re-enactment thereof forthe time being in force), the remuneration of the Cost Auditors appointed by the Board of Directors of the Company forthe financial year 2019-20 as set out in the Statement annexed to the Notice convening this Meeting, be and is herebyratified.

RESOLVED FURTHER THAT

The Board of Directors of the Company be and are hereby authorised to do all such acts, deeds and things as may benecessary, proper or expedient to give effect to this resolution."

By order of the Board Sd/-

M Jagadeeshwara RaoCompany Secretary

Registered office:Administrative Building,Rashtriya Ispat Nigam Limited (RINL),Visakhapatnam Steel Plant (VSP),Visakhapatnam 530 031.

Date: 19-08-2019

NOTE:

1. A Member entitled to attend and vote at the meeting is entitled to appoint a proxy to attend and voteinstead of himself/herself 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. Statutory Registers and documents referred to in the accompanying Notice and the Statement are open forinspection by the Members at the Registered Office of the Company on all working days during businesshours.

4. Brief resume of the Directors seeking appointment or re-appointment is annexed hereto and forms part of theNotice.

5. The relevant explanatory statement pursuant to Section 102 of the Companies Act, 2013, in respect of items ofSpecial Business, as set out above is annexed hereto.

6. None of the Directors of the Company is in any way related with each other.

***

209

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.4:

Shri Sunil Gupta was appointed as Non-Official Independent Director on the Board of RINL with effect from13th November, 2015 by the President of India vide Order F.No.1/10/2015-BLA, dt. 13th November, 2015issued by Ministry of Steel (MoS) for a period of three years from the date of notification or until furtherorders from the MoS, whichever is earlier.

Subsequently, Shri Sunil Gupta was re-appointed as Non-Official Independent Director on the Board of RINLfor a period of one year from the date of completion of his existing tenure i.e., 12th November, 2018, or tillfurther orders whichever is erlier, by the Government of India through Ministry of Steel vide its Order F.No.1/10/2015-BLA (Vol III-pt), dt. 19th November, 2018.

His brief resume, inter-alia, giving nature of expertise in specific functional area is provided elsewhere whichforms part of this Notice.

Shri Sunil Gupta is not disqualified from being appointed as a Director in terms of Section 164(1) of theCompanies Act, 2013. None of the Directors or Key Managerial Personnel of the Company or their relativesexcept Shri Sunil Gupta is in any way, concerned or interested, financially or otherwise, in the resolution setout at item no.4 of the Notice.

The Board recommends the resolution for the approval of Shareholders.

Item No.5:

Shri S K Mishra was appointed as Non-Official Independent Director on the Board of RINL with effect from27th November, 2015 by the President of India vide Order F.No.1/10/2015-BLA, dt. 27th November, 2015issued by Ministry of Steel (MoS) for a period of three years from the date of notification or until furtherorders from the MoS, whichever is earlier.

Subsequently, Shri S K Mishra was re-appointed as Non-Official Independent Director on the Board of RINLfor a period of one year from the date of completion of his existing tenure i.e., 26th November, 2018, or tillfurther orders whichever is erlier, by the Government of India through Ministry of Steel vide its Order F.No.1/10/2015-BLA (Vol III-pt), dt. 19th November, 2018.

His brief resume, inter-alia, giving nature of expertise in specific functional area is provided elsewhere whichforms part of this Notice.

Shri S K Mishra is not disqualified from being appointed as a Director in terms of Section 164(1) of theCompanies Act, 2013. None of the Directors or Key Managerial Personnel of the Company or their relativesexcept Shri S K Mishra is in any way, concerned or interested, financially or otherwise, in the resolution setout at item no.5 of the Notice.

Item No.6:

Shri Deb Kalyan Mohanty was appointed as Director (Commercial) in the scale of pay of 75,000 - 1,00,000/- on the Board of RINL by the President of India vide Order F.No. 2(5) /2017-BLA dated 15th July, 2019 issuedby Ministry of Steel (MoS) for a period of Five years from the date of his assumption of charge of the post, i.e.,01st August, 2019 till the date of his superannuation or until further orders from the MoS, whichever is theearliest.

In terms of the provisions of the Section 149, 152, 161 of the Companies Act, 2013 and rules made thereunder, every director of the Company has to be appointed in the general meeting of the Company. Therefore,

210

regularization of the appointment of Shri Deb Kalyan Mohanty as Director (Commercial) on same terms andconditions as determined by Government of India is placed for the approval of shareholders.

His brief resume, inter-alia, giving nature of expertise in specific functional area is provided which forms part ofthis Notice.

Shri Deb Kalyan Mohanty is not disqualified from being appointed as a Director in terms of Section 164(1) ofthe Companies Act, 2013. None of the Directors or Key Managerial Personnel of the Company or their relativesexcept Shri Deb Kalyan Mohanty is in any way, concerned or interested, financially or otherwise, in the resolutionset out at item no.6 of the Notice.

The Board recommends the resolution for the approval of Shareholders.

Item No.7:

Section 148(3) of the Companies Act, 2013 read with Rule 14 of the Companies (Audit & Auditors) Rules, 2014requires that remuneration of the Cost Auditors as recommended by the Audit Committee shall be consideredand approved by the Board of Directors to be ratified subsequently by the shareholders.

The Board of Directors in its 320th Meeting held on 31st July 2019, on the recommendation of the AuditCommittee in its 86th meeting held on 30th July, 2019, has approved the appointment and remuneration of theCost Auditors to conduct the audit of the Cost Records of the company for the financial year 2019-20.

The Cost Auditors appointed for the financial year 2019-20 along with the details of their fees are as under:

Name of the Cost Auditor Remuneration for the financial year 2019-20

M/s K G Goyal & Associates, 51,000/- (Rupees Fifty One Thousand only) (inclusive of Cost Accountants, New Delhi Travelling and other incidental expenses and all taxes and duties)

plus applicable GST and Boarding, Lodging and local conveyance at Visakhapatnam during the audit period.

Accordingly, consent of the Members is sought by passing of an Ordinary Resolution for ratification of theremuneration payable to the Cost Auditors for the financial year 2019-20.

None of the Directors or Key Managerial Personnel of the Company or their relatives is in any way, concernedor interested, financially or otherwise, in the resolution as set out at Item no.7 of the notice.

The Board recommends the resolution for approval of the shareholders.

By order of the Board

Sd/-

M Jagadeeshwara RaoCompany Secretary

Registered office:Administrative Building,Rashtriya Ispat Nigam Limited (RINL),Visakhapatnam Steel Plant (VSP),Visakhapatnam 530 031.

Date: 19th August, 2019

211

FORM No. MGT-11Proxy form

[Pursuant to section 105(6) of the Companies Act, 2013 and rule 19(3) of the Companies (Management and Administration) Rules, 2014]CIN : U27109AP1982GOI003404Name of the company : RASHTRIYA ISPAT NIGAM LIMITEDRegistered office : Administrative Building, Visakhapatnam Steel Plant (VSP), Visakhapatnam 530 031, Andhra Pradesh.Website : www.vizagsteel.com; Tel: (0891)251 8015/8249email : jagadeeshm@vizagsteel.comName of the member (s) :Registered address :E-mail Id :Folio No/ Client Id :DP ID :I/We, being the member (s) holding...................................shares of the above named company, hereby appoint:

1. Name:Address:E-mail Id:Signature: ..................................................................................., or failing him

2. Name:Address:E-mail Id:Signature: ...................................................................................., or failing him

3. Name:Address:E-mail Id:Signature: ......................................................................................,

as my/our proxy to attend and vote (on a poll) for me/us and on my/our behalf at the 37th Annual General Meeting of the company,to be held on Friday, the 13th Day of September, 2019 at 14.00 Hrs at Registered Office, Administrative Building, RINL/VSP,Visakhapatnam-530 031, Andhra Pradesh and at any adjournment thereof in respect of such resolutions as are indicated below:

1 To receive, consider and adopt the Audited Financial Statements including ConsolidatedFinancial Statements of the Company for the year ended March 31, 2019, together with theDirectors Report, the Reports of Auditors' and comments of the Comptroller & AuditorGeneral of India (C & AG) thereon.

2 No dividend declaration for the Financial Year 2018-19.3 To authorize Board of Directors of the Company to fix the Remuneration of the Statutory

Auditors of the company appointed by Comptroller & Auditor General of India (C&AG) forthe financial year 2019-20, in terms of provisions of Section 139(5) read with Section 142of the Companies Act, 2013 .

SPECIAL BUSINESS4 To appoint Shri Sunil Gupta, (DIN: 00162519) as Director of the Company.5 To appoint Shri S K Mishra, (DIN: 07270083) as Director of the Company.6 To appoint Shri D K Mohanty (DIN: 08520947) as Director (Commercial) of the Company7 To ratify the remuneration of the Cost Auditors for the financial year 2019-20.

Sl.No. RESOLUTIONS VOTE(Please mention no. of shares)

ORDINARY BUSINESS For Against Abstain

Signed on this ......................day of .............2019

Signature of shareholder

Signature of Proxy holder(s)`_____________,_______________,____________

Note: This form of proxy in order to be effective should be duly completed and deposited at the Registered Office of theCompany, not less than 48 hours before the commencement of the Meeting.

212

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213

ADDENDUM TO THE NOTICE of the 37th Annual General Meeting of the members of Rashtriya Ispat NigamLimited to be held at 14.00 hrs on Friday, the 13th day of September, 2019 at the Registered Office of theCompany at Administrative Building, Visakhapatnam Steel Plant, Rashtriya Ispat Nigam Limited (RINL),Visakhapatnam - 530 031, Andhra Pradesh.

Whereas circumstances have arisen after publication of Original Notice requiring certain additions/modificationsto the Original Notice, therefore, Members are hereby notified as follows:

This addendum shall be deemed to be part of the Original Notice, and shall be read along with Original Notice,Further, Original Notice shall be deemed to be amended as provided herein;

1. Addition of Item No. 8 to the original Notice.

SPECIAL BUSINESS:

8. To appoint Shri K K Ghosh (DIN: 08554242) as Director (Projects) of the Company and in this regard to considerand 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, 161 and other applicable provisions, if any, of the CompaniesAct, 2013 and rules made thereunder, Shri K K Ghosh (DIN: 08554242) who was appointed as Director (Projects)by President of India pursuant to powers vested under Article No.75 of the Articles of Association of RINL andassumed charge on 5th September, 2019 be and is hereby appointed as Director (Projects) of the Company.

By order of the Board

Sd/-

M Jagadeeshwara Rao

Company Secretary

Date: 12th September, 2019

Place: Visakhapatnam

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/herself 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. Statutory Registers and 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.4. Brief resume of the Director seeking appointment or re-appointment is annexed hereto and forms part of the

Notice.5. The relevant explanatory statement pursuant to Section 102 of the Companies Act, 2013, in respect of Special

Businesses, as set out above is annexed hereto.6. None of the Directors of the Company is in any way related with each other.

***

RASHTRIYA ISPAT NIGAM LIMITED(CIN: U27109AP1982GOI003404)

Regd.Office: Administrative Building, Visakhapatnam Steel Plant (VSP),Visakhapatnam 530 031, Andhra Pradesh

Website: www.vizagsteel.com; email: jagadeeshm@vizagsteel.com; Tel & Fax: (0891) 2518249.

ADDENDUM TO THE NOTICE OF 37th ANNUAL GENERAL MEETING dated 20/08/2019

214

ANNEXURE TO THE NOTICE

EXPLANATORY STATEMENT TO THE SPECIAL BUSINESSES PROPOSED IN THE NOTICE

(Pursuant to Section 102(1) of the Companies Act, 2013)

Item No.8:

Shri Kanak Kumar Ghosh was appointed as Director (Projects) in the scale of pay of 75,000 - 1,00,000/- on theBoard of RINL by the President of India vide Order F.No. 2(5) /2017-BLA dated 3rd September, 2019 issued byMinistry of Steel (MoS) from the date of his assumption of charge of the post, i.e., 05th September, 2019 till thedate of his superannuation i.e. 30.09.2022 or until further orders, whichever is the earlier.

In terms of the provisions of the Section 149, 152, 161 of the Companies Act, 2013 and rules made there under,every director of the Company has to be appointed in the general meeting of the Company. Therefore, regularizationof the appointment of Shri Kanak Kumar Ghosh as Director (Projects) on same terms and conditions as determinedby Government of India is placed for the approval of shareholders.

His brief resume, inter-alia, giving nature of expertise in specific functional area is provided which forms part of thisNotice.

Shri Kanak Kumar Ghosh is not disqualified from being appointed as a Director in terms of Section 164(1) of theCompanies Act, 2013. None of the Directors or Key Managerial Personnel of the Company or their relatives exceptShri Kanak Kumar Ghosh is in any way, concerned or interested, financially or otherwise, in the resolution set out atitem no.8 of the Notice.

The Board recommends the resolution for the approval of Shareholders.

By order of the Board

Sd/-

M Jagadeeshwara Rao

Manager (Company Affairs) &

Company Secretary

Date: 12th September, 2019

Place: Visakhapatnam

215

BRIEF RESUME OF THE DIRECTOR PROPOSED IN THE

RESOLUTION TO THE NOTICE OF AGM FOR THE F.Y.2018-19

The details in the above table are as on notice date.

216

Shri K K GhoshDirector(Projects)

08554242

10.09.1962, 57

05.09.2019

BE (Metallurgy)

Sri Kanak Kumar Ghosh assumed charge as the new Director (Projects) of RINL-VSP w.e.f. 05/09/2019. Prior to this assignment, Sri Ghosh worked as ExecutiveDirector (Mills & Logistics) in RINL.

Sri Ghosh, a 1983 batch Management Trainee, has vast experience in SteelIndustry. He worked in various capacities like HOD of Wire Rod Mill, GeneralManager (Rolling Mills) during his long journey in RINL-VSP. Sri Ghosh is known

for high levels of discipline and administrative capabilities.

NIL

Member of

1. Board Sub Committee on Raw Material Security and Joint Ventures &Acquisitions

2. Board Sub Committee on Expansion and Related Projects

3. Stakeholders/Investors Grievance Committee

NIL

NIL

Name

DIN

Date of Birth & Age

Date of Appointment

Qualifications

Expertise in specificfunctional Area

Directorship held in otherPublic companies

Membership/ Chairmanshipof committees in RINL

Membership/ Chairmanshipof Committees in other PublicCompanies(other than RINL)

No.of Shares held in RINL

FORM No. MGT-11Proxy form

[Pursuant to section 105(6) of the Companies Act, 2013 and rule 19(3) of the Companies (Management and Administration) Rules, 2014]CIN : U27109AP1982GOI003404Name of the company : RASHTRIYA ISPAT NIGAM LIMITEDRegistered office : Administrative Building, Visakhapatnam Steel Plant (VSP), Visakhapatnam 530 031, Andhra Pradesh.Website : www.vizagsteel.com; Tel: (0891)251 8015/8249email : jagadeeshm@vizagsteel.comName of the member (s) :Registered address :E-mail Id :Folio No/ Client Id :DP ID :I/We, being the member (s) holding...................................shares of the above named company, hereby appoint:

1. Name:Address:E-mail Id:Signature: ..................................................................................., or failing him

2. Name:Address:E-mail Id:Signature: ...................................................................................., or failing him

3. Name:Address:E-mail Id:Signature: ......................................................................................,

as my/our proxy to attend and vote (on a poll) for me/us and on my/our behalf at the 37th Annual General Meeting of the company,to be held on Friday, the 13th Day of September, 2019 at 14.00 Hrs at Registered Office, Administrative Building, RINL/VSP,Visakhapatnam- 530 031, Andhra Pradesh and at any adjournment thereof in respect of such resolutions as are indicated below:

1 To receive, consider and adopt the Audited Financial Statements including ConsolidatedFinancial Statements of the Company for the year ended March 31, 2019, together with theDirectors Report, the Reports of Auditors' and comments of the Comptroller & AuditorGeneral of India (C & AG) thereon.

2 No dividend declaration for the Financial Year 2018-19.3 To authorize Board of Directors of the Company to fix the Remuneration of the Statutory

Auditors of the company appointed by Comptroller & Auditor General of India (C&AG) forthe financial year 2019-20, in terms of provisions of Section 139(5) read with Section 142of the Companies Act, 2013 .

SPECIAL BUSINESS4 To appoint Shri Sunil Gupta, (DIN: 00162519) as Director of the Company.5 To appoint Shri S K Mishra, (DIN: 07270083) as Director of the Company.6 To appoint Shri D K Mohanty (DIN: 08520947) as Director (Commercial) of the Company7 To ratify the remuneration of the Cost Auditors for the financial year 2019-20.

8. To appoint Shri K K Ghosh (DIN: 08554242) as Director (Projects) of the Company

Sl.No. RESOLUTIONS VOTE(Please mention no. of shares)

ORDINARY BUSINESS For Against Abstain

Signed on this ......................day of .............2019

Signature of shareholder

Signature of Proxy holder(s)`_____________,_______________,____________

Note: This form of proxy in order to be effective should be duly completed and deposited at the Registered Office of theCompany, not less than 48 hours before the commencement of the Meeting.

217