Ferro Scrap Nigam Limited Annual Report 2011-12

VuUhtu f{i v rldb rtrbxuz
(Cth; mhfUth fUt Wvf{ b)
Ferro Scrap Nigam Limited

(A Government of India Undertaking)
33
J JtrMofU r;Ju=l 2011-2012

rd
ANNUAL REPORT
CONTENTS
rJMgmqae
* rl=uNfU fUt r;Ju=l
* tuFt vheGfU fUt r;Ju=l
* Cth; fuU rlgktfU YJk bnttuFt
vheGfU fUe rxvrKgtU
* ;wtl vt
* ttC J ntrl rJJhK
* ld= Jtn rJJhKe
3
28
Directors Report
Auditors Report
29
Comments of Comptroller and

Auditor General of India (CAG)
39
Balance Sheet
41
Statement of Profit and Loss
43
Cash Flow Statement
45
38
40
42
44
YVU Ym Yl Yt / F S N L
1
BOARD OF DIRECTORS
rl=uNfU bzt
Shri S. K. Tripathi
e Ym. fuU rtvtXe

ygG
(19.4.2012
Chairman (w.e.f. 19.04.2012) and

Additional Charge of
Managing Director (w.e.f. 22.8.2012)
mu) YJk
yr;rh; Cth
-ckt rl=uNfU (22.8.2012 mu)
Shri Antony Chacko
e Yxtule atfUtu
ckt rl=uNfU - (22.8.2012 ;fU)
Managing Director (upto 22.8.2012)
e Yt.rmt:o rmkn
Shri L. Siddhartha Singh
(08.09.2011
(upto 08.9.2011)
;fU)
Shri D. B. Singh
e ze.ce.rmkn
(09.09.2011
(w.e.f. 09.09.2011)
mu)
Shri B. B. Singh
e ce.ce.rmkn
e yth. htbthtsq
(17.01.2012
Shri R. Ramaraju
(w.e.f. 17.01.2012)
mu)
Shri G. S. Chugh
e se. Ym. awD
(13.02.2012
mu
12.08.2012
(for the period 13.02.2012 to 12.8.2012)
;fU)
COMPANY SECRETARY
Shri Aditya Prakash Sharma
fUvle mraJ
e ytr=g fUtN Nbto
tuFtvheGfU
htsu mt=
ml=e tuFtvtt
cfUmo
AUDITORS
M/S. RAJENDRA PRASAD
Chartered Accountants
BANKERS
State Bank of India
Bank of India
Indian Bank
Andhra Bank
Bank of Baroda
Punjab National Bank
UCO Bank
Corporation Bank
Cth;eg xux cf
cfU ytpVU Rkrzgt
Rkrzgl cfU
ytkt{t cfU
cfU ytpVU c\zti=t
vkstc luNlt cfU
gqfUtu cfU
fUtvtuohuNl cfU
vksef]U; fUtgtotg&
YVU.Ym.Yl.Yt. CJl, RrJvbux atifU, mux[t YJugq, vtux ctpm l. 37, rCttRo (A.d.)
VUtul & (0788) 222-2474/2475
ViU m & (0788) 222-0423/3884
Registered Office:
F.S.N.L. Bhawan, Equipment Chowk, Central Avenue, Post Box No. 37, Bhilai (C. G.)
Phone : (0788) 222-2474/2475 Fax : (0788) 222-0423/3884
E-mail : fsnl_co@rediffmail.com
Visit us at : //www.ferro-scrap.com
//www.fsnl.nic.in
2
DIRECTORS REPORT
rl=uNfU fUt r;Ju=l

To
The Members
FERRO SCRAP NIGAM LIMITED
bntlCtJ,
GENTLEMEN
ytvfuU rl=uNfUdt fUtu r=lktfU 31.03.2012 fUtu mbtt nwY JMo

fuU rtY vherG; tuFtytuk fuU mt: 33Jek JtrMofU r;Ju=l fuU
mt:-mt: rlgktfU YJk Cth; fuU bnttuFt vheGfU fUe rxvrtgtuk
fUtu ;w; fUh;u nwY nMo ni>
Your Directors have the pleasure in presenting the

33rd Annual Report with the audited accounts for the
year ended 31.03.2012 along with the comments of
the Comptroller and Auditor General of India.
r;,
m=gJ]=
PERFORMANCE HIGHLIGHTS
rlvt=l bwgtkN
PHYSICAL
Ctir;fUeg
The Company, despite

obstacles like closure of
operations at HEC, Ranchi
unit, non-renewal of long
term agreements at IIL, Dolvi,
maintained well in physical
targets in all key operational
areas. Company achieved a
dispatch of 21.48 lakh tones
of scrap and 39.93 lakh tones
of slag haulage. The
physical performance has
been achieved despite
reduction in input of scrap
from current arisals and also
from old dumps. We have
also opened a new unit at BHEL, Haridwar and
commenced operations during the financial year
2011-12. This achievement of scrap and slag was
possible by addition of new jobs and liquidating the old
stock in the existing plants. Such achievements have
been possible due to the excellent work culture, team
spirit, hard work and dedication of all the employees
as well as co-operation and support received from
customers.
fUvle, Ya Ro me, htae RfUtRo buk

attltuk fUt mbtvl, ytRo ytRo
Yt, ztutJe buk =eDtoJr"fU RfUhthltbt
fuU lJelefUht l ntulu sime rJvhe;
ct"tytuk fuU ctJsq= Ce mkattl fuU
mCe bqt Guttuk buk Ctir;fU tgtuk fUtu
yAe ;hn mu cltY hFe ni>
fUvle 21.48 ttF xl f{iUv fUt
uMt YJk 39.93 ttF xl fUe
tid ZwttRo fUhlu buk mVUt nwRo ni>
J;obtl W=TCJ ;:t vwhtlu Zuh mu
Ce f{iUv fuU ytJfU buk fUbe fuU
JtJsq= Ce Ctir;fU rlvt=l fUtu vqht
rfUgt dgt> nblu ce Ya Ro Yt,
nrhth buk YfU lRo RfUtRo Ce Ftute ni ;:t rJteg JMo
2011-12 fuU =tihtl attltuk fUtu thC rfUgt dgt ni> f{iUv
;:t tid fUt gn rlvt=l lY fUtgtuo fuU sw\zlu ;:t J;obtl
mkgkttuk buk vwhtlu fkU" fuU vrhmbtvl mu mkCJ ntu mfUt> gn
Wvtr"gt fUtgo-mkf]Ur;, xeb-CtJlt, fUrXl vrhb ;:t mCe
fUboatrhgtuk fuU mbvot fuU mt:-mt: d{tnfUtuk mu tt mngtud YJk
b== mu mkCJ ntu mfUe ni>
Rvt; rlbtoK buk titurdfU rJfUtm/yt"wrlfUefUht mu Rvt;
mkgkt buk f{iUv fUt sll fUb ntu dgt ni ;:t vrhttbJv
tid mu f{iUv fUe Wvt";;t f{UbN& Dx dge ni> rJfUtm ;:t
ttC=;t fUtu cun;h cltlu fUvle lY fUtgtuo fUtu nt: buk tulu fUt
yJmh ;ttN hne ni>
The technological development/modernization in steel

making has brought down the generation of scrap in
steel plants and as a result the availability of scrap
from slag has gradually reduced. To improve the growth
and profitability, company is exploring opportunity to
secure new jobs.
3
FINANCIAL
rJteg
The total earning of the company was ` 17,491 lakhs

including service charges of `16,463 lakhs as
compared to the previous years figure of
` 16,853 lakhs and `16,078 lakhs respectively. The
companys gross margin and
the profit before tax during the
year was ` 1,368 lakhs and
` 203 lakhs as compared to
the previous years figure of
`1,346 lakhs and ` 178 lakhs
respectively.
fUvle fUt fwUt Wvtsol d; JMo fuU f{UbN& ` 16,853 ttF

;:t ` 16,078 ttF fuU ytfU\ztuk fUe ;wtlt buk ` 16,463 ttF
fuU muJt Cth mrn; ` 17,491 ttF :t> JMo fuU =tihtl fkUvle
fUt mfUt btrsol ;:t fUh vqJo
ttC d; JMo fuU f{UbN& ` 1,368
ttF ;:t ` 203 ttF fuU ytfU\ztuk
fUe ;wtlt buk ` 1,346 ttF ;:t
` 178 ttF :t>
Rvt; mkgkttuk tht fUb Fv;
fUtht urM; f{iUv fUe dwtJtt
fUbe ntulu ;:t ztutJe RfUtRo
ylwck"tuk fuU lJelefUht l ntulu
fUtht htsJ buk Dtxt ntulu
ctJsq= fUvle fUe ttC=;t
Wvt;fU J]r =Notge dge ni>
fuU
buk
buk
fuU
fuU
buk
The profitability of the

company has shown
marginal improvement inspite
of reduction in the quality of
scrap dispatched and lesser
consumption by the steel
plants and loss of revenue in
Dolvi unit due to non renewal
of contracts.
GENERAL RESERVES
mtbtg ythrGr;gt &
Pursuant to section 205 (2A) of the Companies

Act,1956, read with the Companies (Transfer of Profits
to reserves) Rules, 1975, an amount of ` 90 lakh is
proposed to be transferred to General Reserves from
Profit & Loss Account leaving a balance of ` 0.01 Lakh
to be carried forward to the Balance Sheet.
fUvrlgtuk (ttCtuk fUt ythrG; rlr" buk yk;ht) fuU rlgb, 1975
fuU mt: vrX; fUvle yr"rlgb, 1956 fUe "tht 205 (2A) fUt
ylwmht fUh;u nwY ` 90 ttF fUtu ttC YJk ntrl Ft;t mu
mtbtg ythrGr; buk yk;rh; fUhlt ;trJ; ni ;:t yr"NuM
` 0.01 ttF fUtu ;wtl-vt buk yd{url; rfUgt stYdt>
ttCtkN
DIVIDEND
ytvfuU rl=uNfUdK JMo 2011-12 fuU rtY ` 40 ttF fUe hfUb

fUe mbt=t ykkN vqkse vh 20 r;N; fUe =h mu ttCtkN fUe
mnMo ylwNkmt fUh;u nki > stu fUe ze ve Ro dtRoz ttRl
(zeveRo ytu.Yb.l& 15(10)/2004 zeveRo (seYb) r=ltkfU 18
yxqch, 2004 fuU ylqv ni >
Your Directors are pleased to recommend a dividend

@20 % on the paid up equity share capital amounting
to ` 40 Lakhs for the year 2011-2012 in line with the
DPE Guideline issued in this regard (DPE O.M. No.:
15(10) / 2004-DPE(GM) dated 18th October, 2004.
FOREIGN EXCHANGE EARNING & OUTGO
rJ=uNe bwt ysol ;:t rldob
Foreign exchange earning & outgo during the year is

NIL.
JMo fuU =tihtl rJ=uNe bwt Wvtsol YJk rldtobe Nqg ni>
Wsto mkhGK ;:t titurdfUe yJNtuMK YJk lJ-]sl
ENERGY CONSERVATION & TECHNOLOGY

ABSORPTION AND INNOVATION
Wsto mkhGK
ENERGY CONSERVATION
Wsto fUt mkhGt YfU bqt Gut ntu;t ni snt fkUvle Fv; fUtu
rlhk;h ylwJeGt fuU tht g:o catfUh Wsto catlu fUt gtm
fUh hne ni>
The conservation of energy has been one of the key

areas where company is striving for saving energy by
avoiding waste through continuous monitoring of
consumption.
fkUvle (rl=uNfU bzt fuU r;Ju=l buk gtiht fUt fUxefUht)

rlgb, 1988 fuU mt: vrX; fkUvle yr"rlgb, 1956 fUe "tht
217(1)(Ro) fuU tJ"tltuk fuU y;do; Wsto fuU mkhGt ;:t
;fUlefUe yJNtuMt mu mkckr"; stu yvurG; stlfUthe f{UbN&
mktlfU Ivt-fUO ;:t Ivt-FO buk =e dge ni, Rm r;Ju=l
fuU Ctdv nik>
Information as required under provisions of Section

217(1)(e) of the Companies Act,1956, read with the
Companies (Disclosure of Particular in the report of
Board of Director) Rules 1988, regarding conservation
of energy and Technology Absorption, are given in
the Annexure-I Form-A and Form-B respectively
forming part of this report.
titurdfUe yJNtuMK YJk lJ_]sl
TECHNOLOGY ABSORPTION AND INNOVATION
titurdfUe fuU yJNtuMt fuU vrhug buk gtiht &
PARTICULARS WITH RESPECT

ABSORPTION OF TECHNOLOGY
(fU) rJfUtm J]r ;:t yrCgktrtfU
a) DEVELOPMENT & ENGINEERING
TO
1)
rCttRo buk awcfUeg muvhuxh fUtu d\Zlu ;:t :tvlt fUt fUtgo
mVUt;tvqJofU vqto YJk Jr;o; nwyt>
1. Fabrication & erection of Magnetic Separator at

Bhilai completed & commissioned successfully.
2)
ctufUthtu buk ;:t f{UrNkd YJk f{Uerlkd RfUtRo fUe Gb;t mkJ]r
fuU r;eg ;:t ykr;b aht fUtu mVUt;tvqJofU vqto YJk vwloJr;o; rfUgt dgt ni>
2. Second & final phase of capacity enhancement

of Crushing & Screening Unit at Bokaro has been
completed & re-commissioned successfully.
3)
rCttRo buk fUb Ab;t fUt awJfUeg muvhuxh fUt ViUrc{fuUNl

;:t :tvl fUtgo dr; buk ni >
4)
rCttRo buk awcfUeg muvhuxh fUt ViUrc{fuUNl ;:t :tvl

fUtgo dr; buk ni stu fUe fkUvle fUe RofUtRo lettat Rvt;
buk :trv; rfUgt stgudt >
3. Fabrication, erection and commissioning of small

capacity Magnetic Separator at Bhilai Unit is in
progress.
4. Fabrication, erection and commissioning of new
Magnetic separator job is in progress at Bhilai unit,
which shall be shifted to NINL.
b) TECHNOLOGY
INNOVATION
(F) titurdfUe yJNtuMt YJk lJ-t]sl &
ABSORPTION
AND
The following technologies are being used :
rlbrtrF; titurdrfUgtuk fUt gtud rfUgt stYdt &

1 Rvt; f{iUv buk YVU Ro fUe mkJ]r>
2 gtkrtfUeg rf{Ugt mu f{iUv fUt ytpme fUrxkd>
3 tid VUtRom Wvt fUhlu tid d{tRrzkd>
1. Enrichment of Fe in the steel scrap.

2. Oxy cutting of scrap by mechanized process.
3. Slag grinding to generate slag fines.
c) RESEARCH & DEVELOPMENT ACTIVITIES:
(d) ylwmk"tl J rJfUtm dr;rJr"gt &
R&D lab has been set-up at Corporate Office, Bhilai

for carried out test & analysis of Fe content in
scrap & slag. Action has been initiated for
registration of R&D lab at DSIR, New Delhi.
Experimental analysis is being carried to develop
process for enrichment of Fe content in scrap fine
of below 10mm size.
f{iUv J tid buk YfU Ro y;Jo;w fUt vheGt ;:t rJtuNK

fUhlu rldbl fUtgtotg, rCttRo buk ylwmk"tl J rJfUtm gtudNttt
:trv; fUe dge ni> ylwmk"tl J rJfUtm gtudNttt fuU vksegl
nu;w ze Ym ytR yth, lRo r=te buk fUthoJtRo thkC fUe dge ni>
10 rb.be. ytfUth mu leau fuU f{iUv VUtRom buk YfU Ro y;Jo;w
fUe mkJ]r fuU rtY fUtgoJtne fUhlu gtudtbfU rJtuNK fUe st
hne ni>
STATUS OF SCRAP RECOVERY CONTRACTS
f{i v rhfUJhe mkrJ=tytuk fUe r:r;

1.
1. SAIL Plants
mut mkgkt
mut fuU rllrtrF; mut mkgkttuk fuU mt: =eDtoJr"fU ylwckD

30.09.2011 ;fU Ji :t &
1. htWhfuUtt Rvt; mkgkt
2. RfUtu Rvt; mkgkt
3. rCttRo Rvt; mkgkt
4. ctufUthtu Rvt; mkgkt
5. =wdtovwh Rvt; mkgkt
Long Term Agreements with the following SAIL

Plants were valid upto 30.09.2011.
01.10.2011
MOU between SAIL and FSNL, for renewal of Long

Term Agreement, for the period 01.10.2011 to
31.03.2013 has been signed on 19.05.2012 for the
common items. Discussions with individual plant
level for finalizing the rates and signing of the
agreement is under progress.
1.
2.
3.
4.
5.
mu 31.03.2013 fUe yJr" fuU rtY =eDtoJr"fU

ylwck" fuU lJelefUht nu;w mut ;:t YVU Ym Yl Yt fuU bg
mtbtg b=tuk fuU rtY 19.05.2012 fUtu mbSti;t ttvl vh
n;tGh rfUgt dgt ni> =htuk fUt ykr;b rltog fUhlu ;:t ylwck"
vh n;tGh fuU rtY mkgkt ;h fuU mt: ytd-ytd Jt;to
dr; buk ni>
2. rJNtFtvxTxKb
2. Visakhapatnam Steel Plant, Visakhapatnam
Rvt; mkgkt , rJNtFtvxTxKb
RINL has in principle agreed for service charge

rates and terms & conditions of the agreement for
the period 01.11.2011 to 31.10.2014. Negotiations
are in progress for renewal of the contract.
yth ytRo Yl Yt lu 01.11.2011 mu 31.10.2014 fUe yJr"

fuU rtY muJt Cth =htuk ;:t ylwck" fuU rlc"l YJk N;tuo fuU
rtY rmkt;;& mnbr; =e ni>
3. lettat
4. Rvt;
3. Neelachal Ispat Nigam Limited, Duburi
Rvt; rldb rtrbxuz, zwcwhe
ylwckD r=ltkfU
12.05.2013
Agreement is valid till 12.05.2013.
;fU Ji ni>
4. Ispat Industries Ltd., Dolvi
Rzx[es rtrbxuz, ztutJe
Agreement with IIL, Dolvi for the job of: processing

of scrap through Magnetic Separator is valid upto
14.03.2013.
awcfUeg muvuhuxh fuU tht fiUv fuU f{Ubt fuU fUtgtuo fuU rtY
ytRo ytRo Yt, ztutJe fuU mt: ylwck" 14.03.2013 ;fU Ji
ni>
5.
5. BHEL, Haridwar.
Cut, nrhth
ylwck"
31.07.2013
Rourkela Steel Plant.

IISCO Steel Plant.
Bhilai Steel Plant
Bokaro Steel Plant
Durgapur Steel Plant.
Agreement is valid upto 31.07.2013.
;fU Ji ni>
6
PERSONNEL
UfUtrbofU
The total strength of manpower in the company as

on 31/03/2012 was 1066, comprising of 144
r=ltkfU 31/03/2012 fUtu fUvle buk 144 fUtgovttfUtuk ;:t 922

fUtgovttfuUth fUboatrhgtuk fUtu rbttfUh fwUt mkgtct 1066 :e>
r=ltkfU 31 btao, 2012 fUtu ylwmqra; str;, ylwmqra; slstr;
;:t yg rvA\zu Jdo mbw=tgtuk fuU
fUboatrhgtuk fUt mbd{ r;rlr"J
f{UbN& 18.19 r;N;, 11.25
r;N; YJk 12.19 r;N; :t>
Executives and 922 Non-executives. The overall

representation of employees
belonging to Scheduled
Caste, Scheduled Tribe &
OBC communities as on 31st
March 2012 was 18.19%,
11.25%
&
respectively.
r=lktfU 31/03/2012 fUtu fUboatrhgtuk

fUe 1066 fUe fwUt mkgtct buk
mu vwM ;:t brntt fUboatrhgtuk
fUe mkgt f{UbN& 1047 YJk 19
:e>
12.19%,
Out of the total strength of

1066 employees as on
31.03.2012, the strength of
Male & Female employees
was 1047 & 19, respectively.
1.
r=ltkfU 31 btao, 2012 fUtu rJrCl mbqntuk buk yst/ysst/

yrvJ/yvmkgfU YJk NtherhfU rJfUttkd fUboatrhgtuk fUe
r:r; Rm fUth :e &
mbqn
fU
F
d
D
(mVUtRo
fUboathe fUtu
Atuz\ fUh)
D
(mVUtRo
fUbao the
mrn;)
gtud
fUboatrhgt fUe
fwUt mkgt
yst
ysst
vwM brntt
vwM brntt
yrvJ
rJfUttkd
1. The position of SC/ST/OBC/minority and

Physically Handicapped employees in various
groups, as on 31st March, 2012, was as follows :
NtherhfU
rJfUttkd
Group
vwM brntt vwM brntt vwM brntt vwM brntt
No. of
Employees
SC
ST
OBC
Minority
Physically
Handicaped
143
14
19
11
143
14
19
11
596
305
0
7
11
0
91
83
0
0
3
0
47
69
0
0
1
0
66
45
0
0
0
0
68
33
0
2
2
0
1
0
0
0
0
0
596
91
47
66
68
305
11
83
69
45
33
191
119
130
112
D
(Excl.
Safai
Karmachari)
1047
19
191
119
130
112
D
(Including
Safai
Karmachari)
TOTAL
1047 19
RECRUITMENTS
C;eogt &
JMo 2011-2012 fuU =tihtl mbqn-fU buk fwUt 11 fUtgovttfUtuk
;:t mbqn-d buk 2 fUtgovttfuUthtuk fUe C;eo fUe dge> Rm fUth
fwUt 13 fUtrbofUtuk fUe C;eo fUe dge ni>
A total no. of 11 Executives in Group-A, and

2 Non-executives in Group-C were recruited during the
year 2011-12, thereby recruiting a total number of
13 personnel.
The Presidential directives issued from time to time

with regard to reservation of vacancies for SC/ST/OBC
& Physically challenged personnel in Recruitments,
are strictly adhered to by FSNL.
YVU Ym Yl Yt tht C;eogtuk buk yst/ysst/yrvJ ;:t

rJfUtktd fUtrbofUtuk fuU rtY rhr;gtuk fuU ythGt fuU mck" buk mbg
mbg vh sthe ht[vr;g rl=uNtuk fUt m;e mu ylwmht rfUgt st
hnt ni >
WELFARE OF MINORITIES
yvmkgfUtuk fUt fUgtK

fUvle lu yvmkgfUtuk fuU fUgtt fuU rtY "tl bkte fuU lY
15 mqteg fUtgof{Ub fuU fUtgtoJgl mu mkckr"; mbg-mbg vh
sthe mCe rl=uNtuku fUt ylwvttl rfUgt ni> r=lktfU 31 btao,
2012 fUtu 1066 fUboatrhgtuk buk mu yvmkgfU mbw=tgtuk mu
mkckr"; fUboatrhgtuk fUe fwUt mkgtct 116 :e ;:t r=lktfU 31
btao, 2012 fUtu YVU Ym Yl Yt buk yvmkgfUtuk fuU r;rlr"J
fUe r;N;;t 10.88 r;N; :e>
The company has complied with all the directives

issued from time to time with regard to
implementation of Prime Minister's new 15 point
programme for the welfare of Minorities. As on
31st March 2012, out of 1066 employees, the total
strength of employees belonging to Minority
communities was 116, and the percentage of
representation of Minorities in FSNL was 10.88%
as on 31st March 2012.
yvmkgfU mbw=tgtuk fuU fUboatrhgtuk fUtu fUvle tht mbd{ v

mu fUboatrhgtuk fuU ttC nu;w mbg-mbg vh art;/mbtrJ
rJrJ" fUgtt Wvtgtuk fuU y;do; Ntrbt rfUgt st;t ni>
The employees belonging to Minority communities,

get covered under various welfare measures as in
vogue/introduced by the company from time to time
for the benefit of the employees as a whole.
WELFARE OF WEAKER SECTIONS
fUbstuh Jdtuok fUt fUgtK
The rules/welfare measures of the company are

uniformly applicable for all categories of employees,
including those belonging to the SC/ST/OBC
communities, and it is ensured that the employees
are well satisfied with such welfare measures.
fUvle fuU rlgb/fUgtt Wvtg yst/ysst/yrvfU mbw=tgtuk mu

mkckr"; fUboatrhgtuk mrn; mCe Jdeo fuU fUboatrhgtuk fuU rtY YfU
mbtl gtug ni ;:t gn mwrlra; rfUgt dgt ni rfU fUboathedt
Rl fUgtt Wvtgtuk mu yAe ;hn mk;w ntuk>
HUMAN RESOURCE DEVELOPMENT
btlJ mkmt"l rJfUtm
Like every year, the company had arranged various

training programmes (Inhouse as well as External)
during the year 2011-12 for the benefit of Executives
and Non-executive employees of the company,
based on the yearly plan chalked out at the beginning
of the year, through reputed training institutions as
well as the OEMs.
gufU JMo fUe ;hn fUvle lu JMo fuU ythkC buk cltY dY JtrMofU
gtuslt fuU yt"th vh r;r; rNGt mk:tltuk fuU mt:-mt:
bqt WvfUh rlbto;tytuk fuU btgb mu fUvle fuU fUtgovttfUtuk ;:t
fUtgovttfuUth fUboatrhgtuk fuU ttC nu;w JMo 2011-2012 fuU =tihtl
rJrJ" rNGt fUtgof{Ub (yt;rhfU fuU mt:-mt: ctng) ytgturs;
fUe>
fUboatrhgtuk fuU JtrMofU =G;t rlvt vttuk buk mbr:o; rNGt
ytJgfU;tytuk fuU mkck" buk mkckr"; tr"fUthtuk fUe ylwNkmt fuU
yt"th vh rJrJ" rNGt fUtgof{Ubtuk fuU rtY fUboatrhgtuk fUt
ltbtkfUl rfUgt dgt ;trfU Wnuk mkckr"; Gut buk yvlu fUtiNt ;:t
mtbgo fUtu c\Ztlu fUt yJmh rbtu ;:t ytiturdfU tuturdfUe buk
r=l-r;r=l rJfUtm mu Jgk fUtu yJd; fUh mfuU>
rNGt fuU rtY mbSti;t ttvl tgtuk fUt IIWf]UOO ;h vqht
fUh rtgt dgt ni>
mqalt fUt yr"fUth yr"rlgb,
2005 fUt
On the basis of recommendations of the concerned

authorities with regard to the training needs endorsed
in the Annual Performance Appraisal forms of the
employees, the nomination of employees for various
training programmes were made, as a measure of
enhancing their skill & abilities in the concerned field,
and for acquainting them with the day-to-day
developments in the industrial technologies.
"Excellent" level of MOU targets for training, has
been achieved.
IMPLEMENTATION OF RIGHT TO
INFORMATION ACT, 2005
ylwvttl
fUvle lu bwg sl mqalt yr"fUthe/mntgfU sl mqalt

yr"fUthe fUtu ltrb; fUh, 17 b=tuk (rlgbtJrtgt) fUe rlgbtJrtgtuk
fUtu ykr;b v =ufUh ;:t fUvle fUe JucmtRox (www.fsnl.nic.in)
vh rlgbtJrtgtuk fUtu tdtfUh mqalt fUt yr"fUth yr"rlgb,
Company has implemented Right to information Act,

2005 by nominating CPIO/ APIO, finalization of
manuals of 17 items (Manuals) and hosting of
8
manuals of the company website( www.fsnl.nic.in)

quarterly reports are submitted to the Ministry of
Steel and CIC regularly. All requests for information
are dealt with as per the prescribed guidelines of
the RTI Act,2005. The total number of RTI
applications received during the period 1st April,
2011 to 31st March,2012 was 43. All 43 applications
have been disposed off.
2005
fUtgtorJ; fUe ni> r;btne r;Ju=l Rvt; bktttg ;:t

fuUeg mqalt ytgw; fUtu rlgrb; v mu ;w; rfUgt st;t ni>
mqalt fuU rtY mCe ylwhtu"tuk fUtu mqalt yr"fUth yr"rlgb,
2005 fuU rl"torh; r=Nt-rl=uoNtuk fuU ylwmth rfUgt st;t ni>
1 yit, 2011 mu 31 btao, 2012 fUe yJr" fuU =tihtl mqalt
fUt yr"fUth ytJu=ltuk fUe fwUt mkgtu 43 :e> Rmbuk mu mCe 43
ytJu=ltuk fUt rlvxtht rfUgt dgt>
VIGILANCE ACTIVITIES
m;foU;t dr;rJr"gtp
The main thrust was given on Predictive and Preventive

vigilance during the year 2011-12 and accordingly
emphasis was given to the streamlining/updating of
the rules etc. Routine checks were conducted regularly
to detect loopholes in the system for irregularities and
to take corrective measures for improvement in the
system whenever required.
JMo 2011 - 2012 fuU =tihtl vqJtolwbtlfU ;:t rlJthfU m;foU;t

vh bwF ct r=gt dgt :t YJk ;=lwmth "thtytuk/rlgbtuk ytr=
fUtu y;l fUhlu vh ct r=gt dgt :t> yrlgrb;;tytuk fuU rtY
ttte buk Ftrbgt Zq\Zlu ;:t sc-sc ytJgfU ntu, ttte buk
mw"th fuU rtY Wra; Wvtg fUhlu rlgrb; v mu lube sta fUe
dge>
rJrJ" ttu;tuk mu tt vrhJt=tuk fUtu rl"torh; r=Nt-rl=uoNtuk/
rf{Ugtytuk fuU ylwmth fUthoJtRo fUe dge ;:t bktttg/fuUeg
m;foU;t ytgtud YJk yg NtmfUeg yrCfUhttuk fuU mt: mbJg
cltY hFt dgt :t> RmfuU yttJu, bktttg/fuUeg m;foU;t
ytgtud fUtu yvurG; r;Ju=l/rJJhrtgtu mbg vh ;w; rfUY
dY>
fUvle buk 31 yxqch mu 5 lJch, 2011 ;fU m;foU;t
stdhfU;t mttn ytgturs; fUe dge ;:t rsmbuk mCe fUboatrhgtuk
mu tumtnl r;rf{Ugt tt nwY> seJl fuU mCe Guttuk buk C{tath
fuU Wbqtl fuU rtY mCe fUtgo-fUttvtuk ;:t fUtgo Guttuk buk yFkz;t
YJk vth=rNo;t ttlu fuU Wug mu rlhk;h gtm fUhlu fUboatrhgtuk
tht YfU r;tt te dge :e> m;foU;t stdfU;t mttn fuU
=tihtl rlc" YJk ltht v"toY ytgturs; fUe dge ;:t v"toytuk
fuU rJsu;tytuk fUtu vwhf]U; rfUgt dgt>
The complaints received from various sources were

handled as per the prescribed guidelines/procedures
and co-ordination was made with Ministry/CVC and
other Govt. agencies. Random scrutiny of the Property
Returns of the officers was carried out. Apart from
this, required reports/returns were submitted to Ministry
/CVC in time.
Vigilance Awareness Week was organized in the
company from 31st October to 5th November , 2011
which received encouraging response from all the
employees. A pledge was taken by the employees to
strive continuously in order to bring about integrity and
transparency in all spheres of activities and work for
eradication of corruption in all spheres of life. Essay
and Slogan competitions were organized during the
vigilance Awareness Week and winners of the
competitions were awarded.
SAFETY
mwhGt
Safety Day celebrations were organized in all the

units as well as at Corporate Office of FSNL for
creating awareness among the employees about
safety & safe working practices. The celebration
consisted of debates on safety & allied areas. There
was an enthusiastic participation from the employees
for such competitions, and the winners were given
away suitable gifts.
mwhGt ;:t mwhrG; fUtgo vr;gtuk fuU cthu buk fUboatrhgtuk fuU bg
stdfU;t ttlu fuU rtY YVU Ym Yl Yt fUe mCe RfUtRogtuk fuU
mt:-mt: rldbl fUtgtotg buk mwhGt r=Jm mbthtuntuk fUt
ytgtusl rfUgt dgt> mbthtun buk mwhGt ;:t mnc Guttuk vh
Jt=-rJJt= fUtu Ntrbt rfUgt dgt :t> Rl r;v"toytuk fuU rtY
fUboatrhgtuk mu Wbkde mnCtrd;t rbte :e ;:t rJsu;tytuk fUtu
ylwfqUt Wvnth r=Y dY>
Apart from the above, the Fire service departments

of the concerned Steel Plants as well as the reputed
agencies like National Safety Council etc., are also
engaged for imparting training to the employees on
prevention of fire/fire hazards and safe working
practices.
W; fuU yttJu, mkckr"; Rvt; mkgkttuk fuU yrl Nbl rJCtdtuk

fuU mt:-mt: ht[eg mwhGt vrhM= ytr= simu r;r; yCfUhttuk
fUtu yrl fUe htufU:tb/yrl mkgtud ;:t mwhrG; fUtgo vr;gtuk
vh rNGt =ulu fuU rtY Ce tdtgt dgt ni>
WORKERS PARTICIPATION IN MANAGEMENT
ck"l b rbfUt fUe mnCtrd;t

YVU.Ym.Yl.Yt lu Imkgw; bka mrbr;O ltbfU YfU mrbr; fUt
dXl rfUgt ni rsmbuk ck"l ;:t btg;ttt mkgt mu mbtl
mkgtuk buk r;rlr" ntu;u nik> btg;ttt mkDtuk fuU rfUme YfU m=g
fUtu mkgw; bka mrbr; fuU mkgw; mkgtusfU ltrb; nik ;:t
mkgtusfU ck"l fUe ;hVU mu ltrb; nik>
FSNL has constituted a Committee, viz., Joint Forum

Committee, consisting of equal number of
representatives from the Management & the
recognized Unions. One of the members of the
recognized unions is nominated as the Jt. Convener
of the JFC, and the Convener is nominated from the
Management side.
mkgw; bka mrbr; fUe ciXfU rlgrb; y;khtttuk buk fUe st;e ni
;:t fUboatrhgtuk fuU rn;tuk fuU rCt-rCt mbgtytuk YJk vrhttbtuk vh
rltog =ulu nu;w rJ;]; rJath-rJbNo fUe st;e ni> mkgw; bka
mrbr; fUe mkhalt mu ytblu-mtblu ciXfUh Rl ytvme Jt;to fuU
fUtht rlgtu;t-fUboathe mkck" fUtu ct rbt;t ni> ck"l ;:t
btg;ttt mkDtuk fuU tht ;:t WlfuU bg snt Rmu ytJgfU
btlt st;t ni, ylwck"tuk fuU ttvl fUtu Ce n;tGrh; rfUgt st;t
ni>
The meetings of the Joint Forum Committee are held

at regular intervals and detailed deliberations are made
on various problems & issues of employees interests,
between the members for arriving at a decision. The
constitution of Joint Forum Committee has
strengthened the Employer-Employee relationship due
to such mutual discussions across the table.
Memorandum of Agreements are also signed by &
between the Management & the Recognized Unions,
wherever it is felt necessary.
Rm fUth, YVU Ym Yl Yt buk ck"l buk rbfUtuk fUe mnCtrd;t

YfU rlgrb; ;:t rlhk;h rf{Ugt ni>
Thus, in FSNL, the Workers' Participation in

Management is a regular & continuous process.
INDUSTRIAL RELATIONS
ytiturdfU mkck"
gnt n\z;tt, DuhtJ/ck= ytr= fUe rfUme Dxlt fuU vrhttbJv
Wvt=l y:Jt btlJ Dkxu fUe Gr; lnek nwRo ni> vqhu JMo Ch
fUvle buk mtint=ovqto ;:t b"wh ytiturdfU mkck" ct hnt>
There has not been any incident of Strike, Gherao/

Bandh etc., resulting in loss of production or manhour.
A cordial& smooth industrial relation prevailed in the
company throughout the year.
OFFICIAL LANGUAGE POLICY
htsCtMt ler;
YVU Ym Yl Yt tht htsCtMt ler; fuU fUtgtoJgl vh mbgmbg vh sthe NtmfUeg rl=uoNtuk fUt mJo=t m;e mu ylwvttl
rfUgt st;t ni>
rn=e lturxkd/z[trxkd v"toY ytgturs; fUe dge ;:t gtuslt fuU
ylwmth rJsu;tytuk fUtu lfU= vwhfUth r=Y dY> rn=e buk yvlu
=ilr=l fUtgtuo fUtu fUhlu buk fUboatrhgtuk fUtu rlhk;h yrCuhKt
rbtlu mu bltuct fUtu cZtJt rbt;t ni >
simt rfU r;JMo ntu;t ni, fUvle fuU rldbl fUtgtotg fuU mt:mt: mCe RfUtRogtuk buk btn rm;ch, 2011 buk rn=e vFJt\zt
fUt ytgtusl rfUgt dgt :t> Rm yJmh fuU =tihtl rn=e rlc"
tuFl r;gturd;t, rn=e ttl r;gturd;t, rn=e CtMK v"toY
ytr= ytgturs; fUe dge rsmbuk fUboatrhgtuk fUe mnCtrd;t
ymt"tht :e> Rl v"toytuk fuU rJsu;tytuk fUtu 26 slJhe, 2012
fUtu ytgturs; dt;kt r=Jm mbthtun fuU =tihtl ylwfqUt vwhfUth
=tl rfUY dY>
htsCtMt ler; fuU fUtgtoJgl fuU Gut buk RmfuU ylwfUhteg J
Nkmleg fUtgo fuU rtY YVU Ym Yl Yt fUtu ylufU r;r;
ytJtzo/vwhfUth rbtt ni> yJtzo buk Rkr=ht dt"e htsCtMt Nez,
Rvt; htsCtMt Nez ytr= mrbrt; ni> RmfuU yttJu, fUvle
fUtu htsCtMt ler; fuU fUtgtoJgl buk RmfuU rJrN fUtgtuok fuU rtY
ldh htsCtMt fUtgtoJgl mrbr; tht vwhfUth ;:t yJtzo Ce
rbtt ni>
10
Strict adherence of Government directives issued from

time to time on implementation of Official Language
policy, are always ensured by FSNL.
Hindi Noting/Drafting competitions were conducted and
the winners were given away the Cash Awards as per
the scheme. Employees were also constantly
motivated to do their day-to-day jobs in Hindi.
As done every year, in the month of September 2011
Hindi Pakhwada (Hindi Fortnight) was organized at
Corporate Office, as well as at all units of the company.
During this occasion, Hindi Essay writing competition,
Hindi Gyan Pariksha, Hindi Debate speech
competitions etc., were organized wherein the
participation of the employees was remarkable.
Suitable prizes were provided to the winners of such
competitions during the Republic Day celebrations held
on 26th January 2012.
FSNL has bagged the prestigious Indira Gandhi
Rajbhasha Puraskar (2nd prize) for 2009-2010, for
the exemplary work carried out in the field of
implementation of Official Language Policy, which was
given away by the Honble President of India on 14th
September, 2011 at New Delhi.
CORPORATE SOCIAL RESPONSIBILITIES
rldrb; mtbtrsfU Wth=trgJ

Irldrb; mtbtrsfU Wth=trgJ ler;O fUtu r;vtr=; rfUgt dgt
ni ;:t bzt tht r=Y dY ylwbtu=l fuU yt"th vh YVU.Ym.Yl.Yt.
tht ler; fUtu ykdefUth rfUgt dgt ni>
Corporate Social Responsibility Policy has been

formulated and on the basis of approval accorded by
the Board, the policy has been adopted by FSNL.
rldrb; mtbtrsfU Wth=trgJ fu U rlJo n l fu U ;n;T

JMo 2011-12 fuU =tihtl YVU Ym Yl Yt fUe RfUtRogtuk, rsmbuk
ytur\zNt, vrab ckdtt, Atemd\Z, SthFkz, yt"{=uN YJk
bntht[ htg Ntrbt ni, fuU mbev: d{tbtuk buk r:; rar;
NtmfUeg Wt;h btgrbfU Ntttytuk buk fUGt-6 mu fUGt-12 buk
yggl fUhlu Jttu yst/ysst/yrvJ mbw=tgtuk YJk NtherhfU
v mu yGb Atttuk mu mkckr"; bu"tJe cttuk fUtu YVU Ym Yl Yt
lu Nttt dtJuN/yggl mtbrd{gt ytr= rJ;rh; fUe ni>
Under the discharge of Corporate Social Responsibility,

during the year 2011-12, FSNL has distributed School
uniforms/study materials etc., to the meritorious
children belonging to SC/ST/OBC communities &
Physically Challenged students, studying in the classVI to XII in the identified Government Higher Secondary
schools located in the villages nearby FSNLs Units,
covering the States of Orissa, West Bengal,
Chhattisgarh, Jharkhand, Andhra Pradesh &
Maharashtra.
FSNL has also provided Surgical apparatus/
equipments, including Multipara Monitor with Pulse
Oxymeter, NIBP, ECG etc., Autoclave, Digital Foetal
Doppler, Phototherapy, Steel Drum etc., to the
Government Hospital at Bhilai (Chhattisgarh) where the
poor people holding BPL Cards, avail medical facilities.
YVU Ym Yl Yt lu rCttRo (Atemd\Z) buk NtmfUeg rarfUmttg,

snt dhece huFt mu leau fUt fUtzo hFlu Jtttuk fuU rl"ol ttudtuk
fUtu rarfUmt mwrJ"tY Wvt" fUhtge st;e ni, fUtu vm
ytpmebexh, Yl ytR ce ve, Ro me se ytr= fuU mt: bxevuht
bturlxh, ytpxtutun, rzrsxt VUtuYxt ztpvts, VUtuxtu:uhive,
xet z[b ytr= hrn; NgfU WvfUht/mt"l Ce bwnigt fUhtge
ni>
RmfuU yttJu, YVU Ym Yl Yt lu dhece huFt mu leau fuU rl"oltuk
mrn; ytb sl;t fUtu rclt ct"t fuU rarfUmt mwrJ"tY =ulu nu;w
W; rarfUmttg fUtu 2 ld ntpzt rlrbo; 3 fuU. ne Y sulhuxh,
4 ld YstWx vkFu ;:t 10 ld Ine dtzoO rlrbo; Jtuxus
xircttRsh Ce bwnigt fUhtge ni>
Apart from this, FSNL has also provided 2 nos. Honda

make 3 KVA Generators, 4 nos. Exhaust fans &
10 nos. of V-Guard make Voltage Stabilizers to the
above hospital for ensuring uninterrupted medical
services to the common public, including down trodden
people belonging to Below Poverty Line.
RmfuU yr;rh;, Atemd\Z htg fUe fUtt YJk mkf]Ur; rJfUrm;

fUhlu fuU Wug mu YVU Ym Yl Yt lu rCttRo (Atemd\Z) buk
ytgturs; fUtgof{Ub fuU rtY rJteg mntg;t =e ni>
Further, in order to develop the Arts & Culture of

Chhattisgarh State, FSNL has provided financial
assistance for the programme organized at Bhilai
(Chhattisgarh).
huz f{Utpm rlr" fUtu rJteg ykN=tl =ufUh YVU Ym Yl Yt lu

W\zemt buk mbts fuU rl"ol ttudtuk fUtu Wnuk rarfUmt YJk yg
W=dtbe sh;tuk fuU rtY b== fUe ni>
By way of making financial contribution to the Red

Cross Fund, FSNL has extended help to the poor
people of the society in Orissa for their medical & other
emergent needs.
Rm fUth fUvle rldrb; mtbtrsfU Wth=trgJ fuU rlJnol buk

yr; fwUNt;t mu fUtgo fUh hne ni>
Thus, the company is doing extremely well in the

discharge of Corporate Social Responsibility.
11
GRIEVANCE REDRESSAL MECHANISM
rNfUtg; mw"th mkdXl

sl rNfUtg;tuk fUtu mw"thlu nu;w YVU Ym Yl Yt buk YfU
3 vkr; rNfUtg; mw"th mkdXl ni>
For redressal of Public Grievances, FSNL has a

3-Tier Grievance Redressal Machinery.
A Grievance Box has been kept at the reception
counter of the Units/Corporate Office for easy
accessibility of these boxes to the Public. The
Grievances so received, are endorsed in a register
called Grievance Register on every Friday in the
presence of Public Grievance Officers, nominated for
this purpose.
sl;t fUtu Rl rNfUtg; vurxgtuk ;fU ytmtl vnwa fuU rtY

RfUtRogtuk/rldbl fUtgtotg fuU Jtd; vxt vh YfU rNfUtg; vuxe
fUtu hFe dge ni> t; ntulu Jttu rNfUtg;tuk fUtu Rm fUtgo nu;w
ltrb; sl rNfUtg; yr"fUtrhgtuk fUe Wvr:r; buk gufU Nwf{UJth
fUtu rNfUtg; vkse ltbfU vkse buk v]tkrfU; rfUgt st;t ni>
aht-1 fuU yk;do;, gr= rfUme d{tnfU/ltdrhfU fUe fUtuRo rNfUtg;
ni ;tu Wnuk Rm fUtgo nu;w ltrb; sl rNfUtg; yr"fUthe mu
rbtlu fUt yJmh r=gt st;t ni, stu "igovqJofU rNfUtg; mwl;u nik
;:t gr= ytJgfU ntu;t ni ;tu sta fUh;u nik YJk rNfUtg; mwllu
fUe r;r: mu 3 fUtgo r=Jmtuk fuU y;htt buk rNfUtg;fU;to fUtu
btirFfU Wth =u;u nik>
Under Stage-I, if a Client/Citizen has some grievance,

he gets an opportunity to meet the Public Grievance
Officer nominated for this purpose, who patiently hears
the grievance, and if necessary, makes enquiries and
gives the complainant a verbal answer within 3 working
days from the date of hearing the grievance.
aht-2 fuU yk;do;, gr= d{tnfU/ltdrhfU sl rNfUtg; yr"fUthe

tht r=Y dY Wth mu mk;w lnek ntu;u nik y:Jt ydh Wnuk 3
fUtgo r=Jm mbg fuU yk=h fUtuRo Wth tt lnek ntu;t ni gt gr=
WlfUe rNfUtg; fUtu sl rNfUtg; yr"fUthe fuU ;h vh
mk;tuMslfU v mu lnek mw"tht st;t ni ;tu rNfUtg;fU;to fUtu
RfUtRogtuk buk RfUtRo bwF ;:t rldbl fUtgtotg buk attl fuU
rJCtdtgG mu rbtlu fUt yJmh r=gt st;t ni, stu rNfUtg; fUtu
"igovqJofU mwlukdu, mkckr"; gr;gtuk mu ylwrf{Ugt tukdu ;:t rNfUtg;
vh yvlt rltog =ukdu y:Jt rNfUtg;fU;to fUtu Wth Cusukdu>
Under Stage-II, in case the Client/Citizen is not

satisfied with the answer given by the Public Grievance
Officer, or if he does not get any reply within 3 working
days time, or if his grievance does not get redressed
satisfactorily at the level of Public Grievance Officer,
the complainant gets an opportunity to meet the Unit
Heads at the Units and HOD of Operations at Corporate
Office, who patiently hears the grievance, gets feed
back from the concerned persons and gives his decision
on the grievance, or sends a reply to the complainant.
aht-3 fuU yk;do;, gr= d{tnfU/ltdrhfU aht-2 fuU rlfUMo mu

lnek ntu;u nik ;tu Wnuk rldbl fUtgtotg buk fUvle fuU bwg
bntck"fU mu rbtlu fUt yJmh r=gt stYdt, stu rNfUtg; fUtu
"igovqJofU mwlukdu, WmfUt rJtuMt fUhukdu ;:t Wmu mw"thukdu>
Under Stage-III, if the Client/Citizen is not satisfied

with the outcome of Stage-II, he gets an opportunity
to meet Chief General Manager of the company at
Corporate Office, who patiently hears the grievance,
analyses the same and redresses it.
gr= d{tnfU/ltdrhfU aht-1, aht-2, ;:t aht-3 fuU rlfUMo mu

mk;w lnek ntu;u nik ;tu Ju fUvle fuU ck" rl=uoNfU mu yvet fUh
mfuUkdu, stu rVUh mu W; mCe 3 ahttuk buk fUe dge fUthoJtRo fUe
vwlo-sta fUhukdu, rNfUtg; fUt rJtuMt fUhukdu ;:t yvet fUe
trt fUe r;r: mu 15 r=Jm fuU mbg buk mkckr"; rNfUtg;fU;to
fUtu yvlu rltog mu yJd; fUhtYkdu>
If the Client/Citizen is not satisfied with the result of

Stage I, II & III above, he can make an appeal to the
Managing Director of the company, who will, in turn,
re-examine the action taken in all the above 3 stages,
analyze the grievance and communicate his decision
to the concerned complainant, within 15 days time
from the date of receipt of the appeal.
01-04-2011
Status of Staff Grievance Redressal from 01-04-2011 to 31-03-2012
mu
31-03-2012
;fU fUtrbofU rNfUtg; rlJthK fUe r:r;
1.04.2011
fUe NuM
rNfUtg;
yJrt fuU =tihtl

tt rNfUtg;
fUe mkgtp
rlJr;o; fUhKt
fUe mkgtp
tkrc; fUhKt
fUe mkgtp
Grievances
outstanding
As on
1.4.2011
No. of
Grievances
received during
the period
No. of
cases
Disposed
Off
No. of
cases
Pending
12
01-04-2011 mu 31-03-2012
1.04.2011
Status of Public Grievances for the period 01-04-2011 to 31-03-2012
;fU fUe yJrt fuU rtY sl rNfUtg; fUe r:r;
fUtu NuM
rNfUtg;
yJrt fuU =tihtl

tt rNfUtg;
fUe mkgtp
rlJr;o; fUhKt
fUe mkgtp
tkrc; fUhKt
fUe mkgtp
Nqg
Nqg
Nqg
Nqg
Nil
Nil
Nil
Nil
RISK MANAGEMENT POLICY
sturFb ck"l ler;

fUvle fuU vtm YfU sturFb ck"l ler; ni rsmu bzt tht
ykdefUth rfUgt dgt ni>
The company has a risk management policy which

has been adopted by the Board.
WHISTLE BLOWER POLICY
mexe "tikfUle ler; &
A Whistle Blower policy has been implemented for

providing an opportunity to the employees to access
in good faith, to the Audit Committee, in case they
observe unethical and improper practices or any other
wrongful conduct in the company, and to prohibit
managerial personnel from taking any adverse
personnel action against those employees. The policy
is based on the guidelines issued by the Department
of Public Enterprises in this regard.
gr= fUboathe fkUvle buk ylir;fU ;:t ylwvgw; fUtgo y:Jt fUtuRo
yg twrxvqto ytaht vt;u nik ;:t fUboatrhgtuk fuU rJh rfUme
r;fqUt fUtrbofU fUthoJtRo fUhlu mu ck"fUeg fUtrbofUtuk fUtu rlMu"
fUhlu nu;w tuFt vheGt mrbr; fUtu vqto rJJtm buk tulu
fUboatrhgtuk fUtu YfU yJmh =ulu fuU rtY fkUvle buk YfU mexe
"tikfUle ler; fUtu rf{UgtrJ; fUe dge ni> gn ler; Rm mkck" buk
ttufU Wb rJCtd tht sthe r=Nt-rl=uoNtuk vh yt"trh; ni>
IT related initiatives:
mqalt titurdfUe mu mkckr"; mqtvt; &
No. of
cases
Pending
FSNL has formulated a Citizen's Charter by adopting

the Seven Step Model, representing a systematic effort
to focus on the commitment of the Organizations
towards its Citizens/Clients in respect of Standard of
Services, Information, Choice and Consultation, Nondiscrimination and Accessibility, Grievances Redress,
Courtesy and Value for money, including expectation
of the Organization from the Citizen/Client for fulfilling
the commitment of the Organization.
YVU Ym Yl Yt lu mt; aht r;btl ykdefUth fUh YfU

ltdrhfU ml= r;vtr=; fUe ni stu mk:tl fUe Jalc;t fUtu
vqht fUhlu nu;w ltdrhfU/d{tnfU mu mk:tl fUe yvuGt mrn;
muJtytuk fuU btlfU, stlfUthe, rJfUv ;:t vhtbNo, dih-rJCu=fUthe
YJk yrCdg, rNfUtg; mw"th, rNtath ;:t bwt nu;w btl fuU
vrhug buk RmfuU ltdrhfUtuk/d{tnfUtuk fuU r; mk:tl fUe Jalc;t
vh mfuUkr; fUhlu YfU f{Ubc gtm fUt r;rlr"J fUh;t ni>
No. of
cases
Disposed
Off
CITIZEN CHARTER
ltdrhfU ml=
No. of
Grievances
received during
the period
There is a Committee in the company for prevention

of sexual harassment of women at work place.
fUtgo-:t vh brntt fuU tikrdfU NtuMt fUe htufU:tb fuU rtY

fUvle buk YfU mrbr; ni>
Grievances
outstanding
As on
1.4.2011
Internet connection has been installed at Corporate

Office and the Units.
rldbl fUtgtotg ;:t RfUtRogtuk buk Rxhlux fUluNl fUtu

mk:trv; rfUgt dgt ni>
rldbl fUtgtotg buk ylufU rJCtd fUtu ttufUt Yrhgt luxJfoU
(Yt Y Yl) fuU tht stu\zt dgt ni>
VuUnrh; ylwJeGt ;:t tuFktfUl fUt fUgqxhefUht vqto ntu
dgt ni>
rldbl fUtgtotg ;:t RfUtRogtuk buk RxhtRosus rhmtumo
ttrlkd (Roythve) fuU fUtgtoJgl nu;w fUthoJtRo thkC fUe dge
ni, gqsmo Ymuxim xurxkd (gqYxe) vqto fUe dge ni ;:t
vrhgtuslt fUtu rm;ch, 2012 fuU yk; ;fU vqto ntulu fUt
ylwbtl ni>
Various department at Corporate Office is linked

up through Local Area Network(LAN).
Computerisation of inventory monitoring and

accounting has been completed.
Action has been initiated for implementation of

SAP - Enterprises Resource Planning (SAP-ERP)
at Corporate office and in the Units, Users
Acceptance Testing (U.A.T.) has been completed
and project is expected to be completed by the
end of September 2012.
13
PARTICULARS OF EMPLOYEES:
fUboatrhgt fUt gtiht
There was no employee of the Company who received

remuneration in excess of the limits prescribed under
Sec 217(2A) of the Companies Act,1956 read with the
Companies (Particulars of Employees ) Rules, 1975.
gnt fUvle fUt fUtuRo Ce fUboathe Yumt ln ni rsmlu fUvle

(fUboatrhgt fUt gtiht) rlgb, 1975 fuU mt: vrX; fUvle
yrtrlgb, 1956 fUe ttht 217 (2A) fuU y;do; rlttorh; mebtyt
mu yrtfU vtrhrbfU tt rfUgt ntu>
DIRECTORS RESPONSIBILITY STATEMENT
rl=uNfU fUt Wth=trgJ rJJhKe
As required under the provisions of Section 217(2AA)

of the Companies (Amendment) Act, 2000 board of
directors states that:
(a) In the preparation of annual accounts the applicable
accounting standards have been followed along
with proper explanation relating to material
departures .
(b) We have selected such accounting policies and
applied them consistently and made judgements
and estimates that are reasonable and prudent so
as to give a true and fair view of the state of
affairs of the company as at 31/03/2012 and of
the profit of the company for the financial year.
(c) We have taken proper and sufficient care for
maintenance of adequate accounting records in
accordance with the provisions of the Companies
Act, 1956 for safeguarding the assets of the
Company and for preventing and detecting frauds
and other irregularities.
(d) We have prepared the financial statements for the
year ended 31st March, 2012 on a going concern
basis.
simt rfU fUvle (mkNturt;) yrtrlgb, 2000 fUe ttht 217

(2YY) fuU Wvtcktt fuU y;do; yvurG; ni, rl=uNfU bzt mqra;
fUh;u ni rfU &(fU) JtrMofU tuFtytuk fUtu ;igth fUhlu buk Ctir;fU hJtlde mu
mkckr"; Wra; vefUht fuU mt: ttdq tuFt btlfUtuk fUt
ylwmht rfUgt dgt ni>
(F) nblu Yume tuFt ler;gt awle nik ;:t Wmu mwmkd;vqto gw;
rfUgt ni YJk rltog ytih ytfUtl r=gt ni rfU Jn Jt;rJfU
J rJJufUe ntu ;trfU 31/03/2012 fUtu fUvle fuU fUtgo-fUttv
;:t rJteg JMo fuU rtY fUvle fuU ttC fUt mne YJk
JA =]g =NtoJu>
(d) nblu fUvle fUe vrhmvr;gtuk fuU mwhGt ;:t fUvx YJk yg
yrlgrb;;tytuk fUt v;t fUhlu ;:t htufU:tb fuU rtY fkUvle
yr"rlgb, 1956 fuU tJ"tltuk fuU ylwmht buk mbwra; tuFt
yrCtuFtuk fuU ylwhGt nu;w Wvgw; YJk vgtot gtl hFt ni>
(D) nblu r=. 31 btao, 2012 fUtu mbtt JMo fuU rtY attq
mbw:tl yt"th vh rJteg rJJhrtgtuk fUtu cltgt ni>
AUDITORS:
tuFt vheGfU
In pursuance of the powers conferred by Sub-Section

(2) of Section 619 of the Companies Act,1956 as
amended vide the Companies ( Amendment) Act, 2000,
the Comptroller & Auditor General of India appointed
RAJENDRA PRASAD., Chartered Accountants as the
Statutory Auditor of the Company for the period under
review.
fUvle yr"rlgb, 1956 fUe "tht 619 fUe Wv-"tht (2) tht
=t Nr;gtuk, simt rfU fUvle mkNtur"; yr"rlgb, 2000 fuU
y;do; mkNtur"; ni, fuU ylwmth rlgktfU YJk Cth; fuU bnttuFt
vheGfU lu htsu mt=, ml=e tuFtvtt fUtu mbeGt"el yJr"
fuU rtY fkUvle fUt Ji"trlfU tuFt vheGfU rlgw; rfUgt>
ck " l fu U sJtc fu U mt: fUvle fu U tu F tytu k vh
r=ltkfU 31 btao, 2012 fUtu mbtt rJteg JMo fuU rtY Ji"trlfU
tuFt vheGfU fUt r;Ju=l Wvtck"-2 buk r=gt dgt ni>
ck " l fu U sJtc fu U mt: fUvle fu U tu F tytu k vh
r=lktfU 31 btao, 2012 fUtu mbtt JMo fuU rtY fUvle
yr"rlgb, 1956 fUe "tht 619(4) fuU y;do; rlgktfU YJk
Cth; fuU bnttuFt vheGfU tht rxvrtgt Wvtck"-3 buk =e dge
ni>
The Statutory Auditors Report on the Accounts of the

Company for the financial year ended on
31st March,2012 is placed at Annexure II.
The comments on the accounts for the year ended
31st March 2012 by the Comptroller & Auditor General
of India under Sec 619(4) of the Companies Act,1956
is placed at Annexure III.
BOARD OF DIRECTORS
rl=uNfU bzt
DIRECTORS:
rl=uNfUdt
Shri S. K. Tripathi, CMD, MSTC Ltd. has been

appointed as part time chairman of the company
w.e.f.19.04.2012.
e Ym.fuU. rtvtXe, ygG mn ck" rl=uNfU, Yb Ym xe me

rt. fUtu 19.04.2012 fuU CtJ mu fUvle fuU ykNfUtrtfU ygG
fuU v buk rlgwr; fUe dge ni>
14
Cth; mhfUth, Rvt; bktttg fuU vt mk.& 12(25)/2008-Yb/

YVU, r=lktfU 18 yd;, 2011 fuU ylwmth e ze.ce.rmkn, WvmraJ fUtu e Yt. rmt:o rmkn, rl=uNfU, Rvt; bktttg, Cth;
mhfUth fuU :tl vh fUvle fuU bzt buk NtmfUeg rl=uNfU fuU
v buk rlgwr; fUe dge ni>
Govt. of India, Ministry of Steel vide letter no: 12(25)/

2008-M/F dated 18/08/2011 appointed Shri D. B. Singh,
Deputy Secretary as Govt. Director on the Board of
the company in place of Shri L. Siddhartha Singh,
Director, MOS, GOI.
e yth.htbthtsq, vqJo-ck" rl=uNfU, rCttRo Rvt; mkgkt-mut

fUtu fkUvle fuU bzt buk 17/01/2012 fUtu J;kt rl=uNfU fuU
v buk rlgwr; fUe dge stu fUe ytdtbe JtrMofU ytb ciXfU fUe
mbtrt ;fU v= vh clu hnukdu ;:t vwlorlgwr; fuU vtt nik> >
Shri R. Ramaraju, ex-MD, Bhilai Steel Plant-SAIL who

has been appointed as additional director on the Board
of the company on 17/01/2012 shall hold office till the
conclusion of the ensuing Annual General Meeting of
the company and being eligible offers himself for reappointment.
e se.Ym.awD, vqJo-ygG mn ck" rl=uNfU, Juxlo fUtutrVUz

rtrbxuz fUtu fkUvle fuU bzt buk 13/02/2012 fUtu J;kt
rl=uNfU fuU v buk rlgwr; fUe dge stu fUe 12/08/2012 ;fU
fUvle fuU rl=uNfU clu hnudu >
Shri G. S. Chugh, ex-CMD, Western Coalfield Limited

who has been appointed as additional director on the
Board of the company on 13/02/2012 shall hold office
till 12/08/2012.
CORPORATE GOVERNANCE
rldrb; yrCNtml
Separate report on Corporate Governance and

Management Discussions and Analysis are attached
herewith as Annexure-IV and forms part of this Annual
report.
rldrb; yrCNtml ;:t ck"l rJath-rJbNo YJk rJtuMt vh

v]:fU r;Ju=l Wvtc-4 ;:t Rm JtrMofU r;Ju=l fuU Ctd fuU
v RmfuU mt: mktl ni>
AWARD:
vwhfUth
Company has received Performance Excellence

Award in Golden Category for the year 2010-2011,
from Indian Institution of Industrial Engineering.
fUvle lu Rrzgl Rlrxrxgqx ytpVU Rzrx[gt Rserlgrhkd

mu JMo 2010-2011 fuU rtY IIdtuzul fiUxudtuhe buk vhVUtbuom
Ymutum yJtzoOO tt fUe ni>
ACKNOWLEDGEMENT
ytCth
The Board records sincere support received from the

valued customers who are Public Sector integrated
steel plants as well as Private Sector steel plants.
Board also express gratitude to the Ministry of Steel
and Mines and other ministries and department of Govt.
of India and State Govt. of Andhra Pradesh,
Chhattisgarh, Jharkhand, Maharastra, Orissa, West
Bengal Karnataka, Uttarakhand and Delhi for their
continued support and guidance.
bzt bnJvqto d{tnfUtuk, stu rfU mtJosrlfU Gut fuU YfUef]U;

Rvt; mkgt fuU mt:-mt: rlse Gut fUt Rvt; mkgkt ni, mu
tt m=TCtJe mngtud fUtu ykrfU; fUh;t ni> bzt Rvt; YJk
Ftl bktttg ;:t Cth; mhfUth fuU yg bktttgtuk ytih rJCtdtuk
YJk ;:t yt"{=uN, Atemd\Z, SthFkz, bntht[, yturzNt,
vrabckdtt, fUltoxfU, WthtFkz ytih r=te fuU htg mhfUthtuk
fUtu WlfuU rlhk;h mngtud ;:t btdo =Nol fuU rtY Ce yvle
f]U;t;t g; fUh;t ni>
The Board of Directors appreciates the contribution of

all the employees at all levels towards attainment of
Companys objectives.
rl=uNfU bzt fUvle fuU tgtuk fUe Wvtr" fuU rtY mCe ;htuk
fuU nhufU fUboatrhgtuk fuU gtud=tl fUe Nkmt fUh;u nik>
For and on behalf of Board of Directors
Jt;u YJk rl=uNfU bzt fUe ytuh muu

r=ltkfU & 09.08.2012
:tl & rCttRo
Yxtule atfUtu
ckt rl=uNfU
Dated : 09.08.2012
Place : Bhilai
ce. ce rmkn
rl=uNfU
15
Antony Chacko
Managing Director
B. B. Singh
Director
mktlf
vt - fU
Wsto fuU mkhGK mu mkckr"; gtiht fuU fUxl nu;w vt
mr; JMo
rJd; JMo
(2011-2012)
(2010-2011)
fU. rJw; ;:t Rk"l Fv;

1.
rJw;
(fU) f{ g rf Y dY
RfUtRo rfUttu Jt\x nxom
fwUt hfUb
=h/RfUtRo (f{ g fuU vrhug b)
1363146
1517447
` 71,27,435
` 66,48,802
5.23
4.38
ygtug
ygtug
ygtug
ygtug
ygtug
ygtug
ygtug
ygtug
ygtug
ygtug
fUtugtt
bttt (xl)
fwUt ttd;
ytim; =h
ygtug
ygtug
ygtug
ygtug
ygtug
ygtug
CxTXe ;ut bttt (rfUttu texh)

bttt (rfUttu texh)
fwUt hfUb
ytim; =h
ygtug
ygtug
ygtug
ygtug
ygtug
ygtug
yg/yt;rhfU sll
bttt
fwUt ttd;
RfUtRo =h
ygtug
ygtug
ygtug
ygtug
ygtug
ygtug
(F) rlse sll

(i) zest srl; RfUtRo tht
zest ;ut fUe RfUtRo/texh
ttd;/RfUtRo
(ii) Jtv xcotRl/srl; RfUtRogtuk
;ut/dim fUe r; texh RfUtRo
2.
3.
4.
F. Wvt=l fUe r; RfUtRo Fv;

btlfU
(gr= fUtuRo ntu)
Wvt=& ttin YJk Rvt; f{i v
rJw; (RfUtRo/be.xl)
C\xXe ;ut
fUtugtt
ygtug
ygtug
ygtug
16
mr; JMo
(2011-2012)
4.58
ygtug
ygtug
rJd; JMo
(2010-2011)
4.29
ygtug
ygtug
-I
ANNEXURE - I
FORM - A
FORM FOR DISCLOSURE OF PARTICULARS WITH RESPECT TO CONSERVATION OF ENERGY.
Current Year
(2011-2012)
Previous Year
(2010-2011)
(a) Purchased Unit KWH

Total Amount
Rate/Unit (in respect of purchase)
1363146
` 71,27,435
5.23
1517447
` 66,48,802
4.38
(b) Own Generation

(i) Through Diesel Generator Unit
Unit
Unit/Ltr. of Diesel Oil
Cost/Unit
N.A.
N.A.
N.A.
N.A.
N.A.
N.A.
N.A.
N.A.
N.A.
N.A.
N.A.
N.A.
N.A.
N.A.
N.A.
N.A.
N.A.
N.A.
N.A.
N.A.
N.A.
N.A.
N.A.
N.A.
N.A.
N.A.
N.A.
N.A.
N.A.
N.A.
N.A.
N.A.
A. POWER AND FUEL CONSUMPTION

1. Electricity
(ii) Through Steam Turbine/Generator Units

Unit
Unit per Ltr.of Oil/Gas
2. Coal
Quantity(Tonnes)
Total Cost
Average Rate
3. Furnace Oil Quantity(K.Ltrs.)
Quantity (K.Ltrs.)
Total Amount
Average Rate
4. Others/Internal Generation
Quantity
Total Cost
Rate /Unit
B. CONSUMPTION PER UNIT OF PRODUCTION
Standards
(if any)
Current Year
(2011-2012)
Previous Year
(2010-2011)
Electricity (Unit/MT)
N.A.
4.58
4.29
Furnace Oil
N.A.
N.A.
N.A.
Coal
N.A.
N.A.
N.A.
Products : Iron & Steel Scrap
17
mktlf
-I
vt - F
titurdfUe yJNtuMK ylwmk"tl YJk rJfUtm
mu mkckr"; gtiuhtuk fuU fUxefUhK nu;w vt
1.
rJrlor= Gutt, rslb fUvle tht ylwmk"tl YJk rJfUtm

fUtgo rfUgt dgt ni
rlhkfU
2.
W; ylwmk"tl YJk rJfUtN fuU vrhKtbJhv t; ttC
ygtug
3.
CtJe fUtgo gtuslt
ygtug
4.
ylwmk"tl J rJfUtm fUt gg

(fU) vqs
e
(F) ytJ;eo (htsJ)
(d) fwUt
(D) fwUt gtvthtJ;o fUe r;N; fuU v b fwUt
ylwmk"tl J rJfUtm gg
rlhkfU
rlhkfU
rlhkfU
ygtug
titurdfUe yJNtuMK, ylwfqUtl ;:t J;ol

1.
titurdfUe yJNtuMK ;:t J;ol fuU vrhug b rkfUY

dY gtm;
2.
W; gtmtuk, simu Wvt= yrCJ]r, jtd; b

fUbe, Wvt= rJfUtm, ytgt; r;:tvl ytr=
fuU vrhttbJv t; ttC>
3.
gr= ytgt;e; ;fUlefU ntu (rJ;eg JMo fuU ythkC

mu dKlt fUh d; 5 JMtuo fuU =tihtl ytgt;e;),
;tu y"tuJrKo; ;w; fUhuk&
(fU)
(F)
(d)
(D)
fUvle vqJo nufuUx Rserlgrhkd fkUvle tht Cth; buk WmfuU

vrhatrt; gtvth fUtu yr"fUth buk tu;u mbg gturs; titurdfUe
fUt Wvgtud fUh hne ni>
ygtug
ytgt;e; titurdfUe
ytgt; JMo
gt titurdfUe vqKo vuK yJNturM; fUe dge ni>
gr= vqKo yJNturM; ln ni ;tu Jn Gut, sntp Wmu ln
rfUgt dgt> WmfuU fUthKt ytih CtJe fUtgo gtuslt>
ygtug
ygtug
ygtug
ygtug
Jt;u YJk rl=uNfU bzt fUe ytuh muU

r=ltkfU & 09.08.2012
:tl & rCttRo
18
Yxtule atfUtu
ce. ce. rmkn
ck" rl=uNf
rl=uNf
ANNEXURE - I
FORM - B
FORM FOR DISCLOSURE OF PARTICULARS WITH RESPECT TO
TECHNOLOGY ABSORPTION RESEARCH AND DEVELOPMENT
1.
Specific areas in which R & D carried out by the Company
NIL
2.
Benefits derived as a result of the above R & D
N.A
3.
Future plan of action
N.A.
4.
Expenditure of R&D
(a)
Capital
NIL
(b)
Recurring (Revenue)
NIL
(c)
Total
NIL
(d)
Total R&D Expenditure as a percentage of total turn over
N.A.
TECHNOLOGY ABSORPTION, ADAPTATION AND INNOVATION

1.
Efforts, in brief, made towards Technology

absorption and innovation
Company is using the technology used by

erstwhile Heckett Engineering Co. in India at the
time of taking over of their running Business.
2.
Benefit derived as a result of the above efforts

e.g. products improvement, cost reduction,
product development, import substitution etc.
N.A.
3.
In case of imported Technology (imported during last

5 years reckoned from the beginning of the financial
year) following information may be furnished.
N.A.
(a)
Technology imported
N.A.
(b)
Year of Import
N.A.
(c)
Has technology been fully absorbed
N.A.
(d)
If not fully absorbed areas where this has not taken

place, reasons therefore and future plan of action
N.A.
Dated : 09.08.2012
Place : Bhilai

ANTONY CHACKO
Managing Director
19
B. B. SINGH
Director
rldrb; yrCNtml
fUvle fuU =Nol

e yth.htbthtsq ytdtbe JtrMofU ytb ciXfU fUe mbtrt ;fU v=
vh clu hnukdu ;:t e yth.htbthtsq vwlrlogwr; fuU vtt nik>
rldrb; yrCNtml fuU mkck" buk fUvle fUt =Nol vth=rNo;t,

fUxefUhttuk ;:t mqaltytuk fUtu mwrlrt; fUh;t ni ;:t mbd{
mk:tl buk lir;fU ytaht fUtu c\ZtJt =u;t ni> gn JefUth fUh;t
ni rfU bzt ykN"thfU ytih bzt fuU gufU m=g fuU r;
yvle vnte fU;og fUe hGt fUhlu ;:t fUvle fuU rn; fUtu ytdu
c\Ztlu fuU rtY sJtc=un ni>
e se.Ym.awD
e Ym.fuU. rtvtXe, fuUeg mtJosrlfU Gut fuU Wvf{Ub-Yb Ym

xe me rt fuU ygG mn ck" rl=uNfU ;:t rlgkte fkUvle-YVU
Ym Yl Yt fuU ygG nik>
mkgtusl &
e yth.htbthtsq mut-rCttRo Rvt; mkgkt fuU vqJo ck" rl=uNfU

nik ;:t J;obtl buk suve ctttse rmbux, sdgTgtvux fuU sgfUtN
YmturmYbTm rt0 fuU mt: ck" rl=uNfU fuU v buk mc nik>
fUvle fuU rl=uNfU bzt buk e Ym.fuU.rtvtXe, ygG, stu

19.04.2012 fuU CtJ mu rlgw; nwY nik, ck" rl=uNfU e
Yxtule atfUtu, e ce.ce.rmkn_Yb Ym xe me rt. fuU ltrb;
rl=uNfU ;:t e ze.ce.rmkn, bzt fuU NtmfUeg ltrb;e nik>
e ze.ce.rmkn Cth; mhfUth, Rvt; bktttg fuU rl=uNfU ni, ;:t
e yth.htbthtsq, vqJo-ck" rl=uNfU, rCttRo Rvt; mkgkt-mut
YJk e se.Ym.awD, vqJo-ygG mn ck" rl=uNfU, Juxlo
fUtutrVUz rtrbxuz fUtu f{UbN& 17/01.2012 YJk 13/02/2012
fUtu fUvle fuU bzt buk J;kt rl=uNfU fuU v buk rlgwr; fUe
dge ni>
e se.Ym.awD, vqJo-ygG mn ck" rl=uNfU, Juxlo fUturtrVUz

rtrbxuz Yb Ym xe me rtrbxuz fuU bzt buk J;kt rl=uNfU
nik>
e ze.ce.rmkn Cth; mhfUth, Rvt; bktttg fuU rl=uNfU nik>
rl=uNfUtuk fUt vtrhrbfU &
J;kt rl=uNfUdt ciXfU NwfU fuU yttJu rfUme vtrhrbfU fuU
vtt lnek ntu;u nik> ciXfU NwfU ygG, NtmfUeg rl=uNfU ;:t
Yb Ym xe me fuU ltrb; rl=uNfU fUtu lnek =e st;e ni>
vqtofUtrtfU rlgtusl buk ntulu fuU fUtht ck" rl=uNfU rlgtusl fUe
N;tuo fuU ylwmth vtrhrbfU fuU vtt nik>
Cth; mhfUth, Rvt; bktttg fuU vt mk.& 12(25)/2008-Yb/

YVU, r=lktfU 18 yd;, 2011 fuU ylwmth e ze.ce.rmkn, WvmraJ fUtu e Yt.rmt:o rmkn, rl=uNfU, Rvt; bktttg, Cth;
mhfUth fuU :tl vh fUvle fuU bzt buk NtmfUeg rl=uNfU fuU
v buk rlgwr; fUe dge ni>
rJteg JMo
06
2011-2012
03.06.2011, 02.07.2011, 20.12.2011
;:t
06.03.2012
bzt fuU
ciXfU fUe r;r:
e ytxtule
atfUtu
e Yt.
rmt:o mkn
140
03.06.2011
Wvr:;
Wvr:;
Wvr:;
141
02.07.2011
Wvr:;
Wvr:;
Wvr:;
142
20.12.2011
Wvr:;
Wvr:;
Wvr:;
143
06.03.2012
Wvr:;
Wvr:;
Wvr:;
2011
fUtu ytgturs; fUe dge>
buk ytgturs; fUvle fuU bzt fUe ciXfUtuk buk rl=uNfUtuk fUe Wvr:r; fUt gtiht &
bzt fUe
ciXfU mk.
rm;ch,
;fU fUvle fuU rl=uoNfU hnukdu >
lJ rlgw; rl=uoNfUtuk fUe mkrGt stlfUthe &
rl=uoNfU bzt &
bzt fUe ciXfU ;:t Wvr:r; &

gnt bzt fUe ath ciXfUtuk f{UbN&
12/08/2012
fUtu ytgturs; fUvle fUe
32 Jek
e ze.ce.
rmkn
e ce.ce.
rmkn
e yth.
htbthtsq
e se.Ym.
awD
Wvr:;
Wvr:;
JtrMofU ytb ciXfU buk fuUJt ck" rl=uNfU btisq= :u>

20
ANNEXURE- IV
CORPORATE GOVERNANCE
COMPANYS PHILOSOPHY
Shri R. Ramaraju shall hold office till the conclusion of the

ensuing Annual General Meeting of the company.
The philosophy of the company in relation to corporate

governance is to ensure transparency, disclosures and
reporting and to promote ethical conduct throughout the
organization. It recognizes that the Board is accountable to
shareholder and each member of the Board owes his / her
first duty to protect and furthering the interest of the company.
Shri G. S. Chugh shall hold office till 12/08/2012.

BRIEF INFORMATION OF THE NEWLY APPOINTED
DIRECTORS.
Shri S. K. Tripathi, Chairman is Chairman and Managing
Director, MSTC Limited, a Central PSU and holding company
of FSNL.
BOARD OF DIRECTORS:
COMPOSITION :
Shri R.Ramaraju is ex-MD, Bhilai Steel Plant-SAIL and

presently associated with Jaiprakash Associates Ltd. as MD,
of Jaypee Balaji Cement, Jaggayyapet.
Board of Directors of the company consists of Chairman

Shri S. K. Tripathi, who has been appointed w.e.f.19.04.2012,
Managing Director Shri Antony Chacko, Shri B. B. Singhnominee Director of MSTC Ltd and Shri D. B. Singh, a Govt.
nominee on the Board. Shri D.B. Singh is a Director to the
Govt. of India, Ministry of Steel and Shri R. Ramaraju, ex-MD,
Bhilai Steel Plant-SAIL and Shri G. S. Chugh, ex-CMD, Western
Coalfield Limited has been appointed as independent directors
on the Board of the company on 17/01/2012 and 13/02/2012
respectively.
Shri G.S.Chugh ex-CMD, Western Coalfield Limited is an

independent director on the Board of MSTC Limited.
Shri D. B. Singh is Director, Govt. of India, Ministry of Steel.
REMUNERATION TO THE DIRECTORS
Independent Directors are not entitled to any remuneration
other than sitting fees. Sitting fees are not given to Chairman,
Government Director and MSTC nominated Director.
Managing Director being in whole-time employment is entitled
to remuneration as per terms of employment.
Govt. of India, Ministry of Steel vide letter no:12(25)/2008-M/F

dated 18/08/2011 appointed Shri D. B. Singh, Deputy
Secretary, MOS,GOI as Govt. Director on the Board of the
company in place of Shri L. Siddhartha Singh, Director,
MOS,GOI.
BOARD MEETING & ATTENDANCE :

There were four Board Meetings that took place on 03.06.2011, 02.07.2011, 20.12.2011 and 06.03.2012, respectively.
Details of the Directors attendance at the Board Meetings of the company held in the financial year 2011-2012.
Board
Meeting
No.
Board
Meeting
Date
Shri Antony
Chacko
Shri L.
Siddhartha
Singh
Shri D.B.
Singh
Shri B.B.
Singh
140
03.06.2011
Attended
Attended
Attended
141
02.07.2011
Attended
Attended
Attended
142
20.12.2011
Attended
Attended
Attended
143
06.03.2012
Attended
Attended
Attended
Shri R.
Ramaraju
Shri G. S.
Chugh
Attended
Attended
Only Managing Director was present in the 32nd Annual General Meeting of the Company was held on 6th September,2011.
21
mCe bzt m=gtuk ;:t bltule; Jrh ck"fU fUtrbofU lu

ytaht mkrn;t fuU ylwvttl fUe vwr fUe ni> ck" rl=uNfU tht
n;tGrh; Rm ytNg fUe DtuMtt Rm r;Ju=l fUe y; buk =e
dge ni>
rl=uNfU tht rl=uNfU v= yrCrl"toht &

e Ym.fuU.rtvtXe, ygG Yb Ym xe me rt0 fuU ygG mn
ck" rl=uNfU nik ;:t e se. Ym.awD Yb Ym xe me rtrbxuz
fuU bzt buk J;kt rl=uNfU nik YJk e ce.ce. rmkn Yb Ym xe
me rt0 buk rl=uNfU JtrtrgfU fuU v buk fUtgo fUh hnu nik ytih
e yth.htbthtsq suve ctttse rmbux, sdggtvux fuU sgfUtN
YmturmYxTm rt0 fuU mt: ck" rl=uNfU fuU v buk mc nik>
ck"l rJJual ;:t rJtuMt r;Ju=l &

Wtud mkhalt YJk rJfUtm
YVU.Ym.Yl.Yt. Rvt; bktttg fuU y"el Cth; mhfUth fUe YfU
fUvle ni> gn vqtovut Yb Ym xe me rt0 fUe JtrbJ Jtte
mntrgfUt ni ;:t ykN vqkse ` 200 ttF ni>
(1) bzt fUe mrbr;gt &

fUvle fuU bzt buk =tu J;kt rl=uNfUtuk e yth.htbthtsq, vqJock"fU rl=uNfU, ce Ym ve-mut ;:t e se.Ym.awD, vqJo-ygG
mn ck" rl=uNfU Juxlo fUtutrVUz rtrbxuz fuU ytlu vh
bzt lu rlb ltrb; ;el mrbr;gtu drX; fUe ni &
YVU Ym Yl Yt fUe vqJtor"fUthe nufuUx Rserlgrhkd fkUvle, gq

Ym Y, 1957 buk Cth; buk attl ythkC rfUgt ;:t Rmlu
Rvt; mkgkttuk buk f{iUv fUe Wdtne ;:t fUbt fUt fUtgo Nwh fUe>
YVU Ym Yl Yt JMo 1979 buk Rvt; bktttg fuU y"el Cth;
mhfUth fUe fUvle fuU v buk Ntrbt rfUgt dgt :t rsmfUt
bwg Wug nufuUx Rserlgrhkd fkU0 fuU fUthtucth fUtu yr"fUth buk
tulu ;:t xet rbt tid fUt f{Ubt YJk ttin ;:t Rvt;
f{iUv fUe rmfUJhe fuU rtY yg yJef]U; fUt fUthtucth fUhlt
:t>
(fU) tuFt vheGt mrbr; &

rl=uNfU bzt fUe tuFt vheGt mrbr; fUtu bzt tht
06.03.2012 fUtu drX; fUe dge ni rsmbuk =tu J;kt rl=uNfU
e yth.htbthtsq, e se.Ym.awD ;:t NtmfUeg ltrb;e rl=uNfU
e ze.ce.rmkn, fUvle fuU fUvle mraJ mrbr; fuU mraJ fuU
v buk nik> J;kt rl=uNfU e yth.htbthtsq tuFt vheGt mrbr;
fuU ygG nik>
fUvle sql, 2002 buk Yb Ym xe me fUe vqto JtrbJ Jtte

mntrgfUt ntu dge ni> YVU.Ym.Yl.Yt. rvAtu fwUt JMtuo mu
Rvt; rbt muJtytuk fuU Gut buk YfU yd{te mk:tl fuU v buk
rJfUtm fUe ni> J;obtl buk fUvle =uN buk 8 Rvt; mkgkttuk buk
fUtgo mkatrt; fUh hne ni ;:t yg rJJ yd{rtgtuk fUtu ;wtleg
titurdfUe fuU mt: muJtYu =tl fUh;e ni>
mrbr; fUe N;uo YJk yrC=uN rldrb; yrCNtml vh sthe ttufU

Wb rJCtd fuU r=Nt-rl=uoNtuk fuU ylwmth ni>
vtrhrbfU mrbr;
bzt tht 06.03.2012 fUtu vtrhrbfU mrbr; drX; fUe dge
ni rsmbuk =tu J;kt rl=uNfU e yth.htbthtsq e se.Ym.awD
;:t NtmfUeg ltrb;e rl=uNfU e ze.ce.rmkn, fUvle fuU fUvle
mraJ mrbr; fuU mraJ fuU v buk nik> J;kt rl=uNfU e
se.Ym.awD vtrhrbfU mrbr; fuU ygG nik> mrbr; fUe N;uo YJk
yrC=uN ttufU Wb rJCtd fuU sthe r=Nt-rl=uoNtuk fuU ylwmth ni>
mwyJmh YJk ytNkfUtYu &

mtbgo &
_ YfU ytRo Ym ytu 9001 : 2008, ytRo Ym ytu 14001:
2004 ;:t ytu Ya Ym Y Ym 18001:2007 btrt;
fUvle>
_ Wf]U fUtgo mkf]Ur;
_ ygr"fU fwUNt b Nr;
_ cnw-ylwNtmrlfU gtvth
_ Rvt; rbt muJtytuk buk Wt;h ctsth ykN
_ fwUNt ylwCJ ;:t mbrvo; fUtgoct fuU mt: YfUef]U;
Rvt; mkgkttuk fUe mbd{ f{iUv rhfUJhe ;:t tid ZwttRo
fUtgo mkCttlu fUe Gb;t>
_ dtu=tb ck"l buk ylwCJ
_ "t;w rhfUJhe, f{Ubt ;:t mtbd{e n;l vh mttnfUth
fUe vuNfUN fUhlu gtug YJk ylwCJe ylwmk"tl J rJfUtm
=t>
(F) rldrb; mtbtrsfU Wth=trgJ ctu"l mrbr;

bzt tht 06.03.2012 fUtu rldrb; mtbtrsfU Wth=trgJ
ctu"l mrbr; fUt dXl rfUgt dgt ni rsmbuk e se.Ym.awD
;:t Yb Ym xe me fuU ltrb;e rl=uNfU e ce.ce.rmkn, fUvle
fuU fUvle mraJ mrbr; fuU mraJ fuU v buk ni> J;kt rl=uNfU
e se.Ym. awD rldrb; mtbtrsfU Wth=trgJ ctu"l mrbr;
fuU ygG nik> rldrb; mtbtrsfU Wth=trgJ fUtgo-fUttvtuk fuU
rtY ;tJ fUe rldhtle fUhlu mrbr; fUt dXl rfUgt dgt ni>
ytaht mkrn;t &
fUvle lu fUvle fuU rl=uNfUtuk fuU mt:-mt: Jrh ck"l fuU
rtY YfU gtvfU mkrn;t fUe vhuFt cltge ni> mkrn;t fUvle
fuU mCe rl=uNfUtuk ;:t Jrh ck"l buk m=g fUtu vrhatrt; fUe
dge ni> ytaht mkrn;t fUvle fUe JucmtRox zgq zgq
zgq.YVU Ym Yl Yt.Yl ytRo me. ytRo Yl vh Wvt" ni>
fUbstuhe &
_ YfUt gtvth_bwg;& f{iUv ;:t tid f{Ubt>
_ d{tnfUtuk fUe yvurGr;gtuk fUtu vqht fUhlu Wt r;rf{Ugt mbg>
22
management of the company. The code of conduct is available

on the website of the company www.fsnl.nic.in. All Board
members and designated senior management personnel have
affirmed compliance with the Code of Conduct. A declaration
to this effect signed by the managing Director is given at the
end of this report.
DIRECTORSHIP HELD BY THE DIRECTOR:

Shri S. K. Tripathi, Chairman is Chairman and Managing
Director of MSTC Limited and Shri G.S.Chugh is an
independent director on the Board of MSTC Limited and
Shri B. B. Singh is working as Director commercial in MSTC ltd
and Shri R.Ramaraju is associated Jaiprakash Associates Ltd.
as MD, of Jaypee Balaji Cement, Jaggayyapet.
MANAGEMENT DISCUSSION AND ANALYSIS REPORT:
COMMITTEES OF THE BOARD
INDUSTRY STRUCTURE & DEVELOPMENTS
On the induction of two independent directors Shri R.RamarajuEx-MD, BSP-SAIL and Shri G.S.Chugh-Ex-CMD,WCL on the
board of the company, Board has constituted three committee
namely:
FSNL is a Government of India Company under Ministry of

Steel. It is a wholly owned subsidiary of MSTC Ltd. and the
share capital is Rs.200 lakhs.
Heckett Engineering Company, USA, predecessor of FSNL
commenced operation in India in 1957 and had been
undertaking the job of recovery and processing of scrap in the
Steel Plants. FSNL was incorporated in 1979 as a Government
of India company with the main objective to take over the
running business of Heckett Engineering Co. and to carry on
the business of processing of Steel Mill Slag and other refuse
for the recovery of Iron and Steel Scrap.
(i) Audit Committee

Audit Committee of the Board of Directors has been constituted
by the board on 06.03.2012, which consists of two independent
directors Shri R.Ramaraju, Shri G.S.Chugh and Govt. nominee
director Shri D.B.Singh, and company secretary of the company
serves as secretary to the committee. Independent Director
Shri R.Ramaraju is the Chairman of the Audit Committee.
The Company became a wholly owned subsidiary of MSTC in

June,2002. FSNL has over the years evolved as a pioneer
organization in the field of Steel Mill services. The company at
present operates in 8 Steel Plants in the country and offers
services with technology comparable to other world leaders.
The terms and reference of the committee is in line with the

DPE Guidelines issued on corporate governance
Remuneration Committee
Remuneration Committee has been constituted by the board
on 06.03.2012, which consists of two independent directors
Shri R. Ramaraju, Shri G. S. Chugh and Govt. nominee director
Shri D. B. Singh, and company secretary of the company serves
as secretary to the committee. Independent Director Shri G.
S. Chugh is the Chairman of the Remuneration Committee.
The terms and reference of the committee is in line with the
DPE Guideline.
OPPORTUNITIES AND THREATS:

Strength:
An ISO 9001:2008, ISO 14001:2004 and OHSAS

18001:2007 certified Company.
Excellent work culture.
Highly skilled manpower
(ii) CSR Monitoring Committee
Multi-disciplinary trade.
CSR Monitoring Committee has been constituted by the board

on 06.03.2012, which consists of Shri G. S. Chugh and MSTC
nominee director Shri B. B. Singh, and company secretary of
the company serves as secretary to the committee.
Independent Director Shri G. S. Chugh is the Chairman of the
CSR Monitoring Committee. The committee has been
constituted to monitor the proposal for CSR activities
Highest market share in Steel Mill Services.
Capacity to handle entire scrap recovery and slag handling

of integrated steel plants having efficient experienced and
dedicated work force.
Experience in Warehouse Management.
Qualified & experienced R&D team to offer consultancy

on Metal Recovery, Processing & Material Handling.
CODE OF CONDUCT:
Weakness:
The company has designed a comprehensive code for directors

as well as senior management of the company. The code is
circulated to all the directors and members in the senior
Single line of business - mainly scrap and slag processing.
High response time to meet customers requirement. Being
23
mtJosrlfU Gut ntulu fuU lt;u fUvle fUtu d{tnfUtuk fUe

yvurGr;gtuk fUt Wth =ulu fuU vqJo rJrJ" ytivatrhfU;tYu vqhe
fUhlu fUe ytJgfU;t ntu;e ni>
_ mtJosrlfU Gut fuU Wvf{Ub fuU Wt Ju;ltuk fuU fUtht attl
fUe Wt ttd;>
_ rlse XufuU=thtuk tht YVU Ym Yl Yt mu cnw; fUb bs=qhe
fUt Cwd;tl mu r;v"to fUhlt bwrfUt>
dwtJtt buk mw"th fuU fUtht "trJfU fUt ctsth bqg mth;& c\Zt
ni rsmmu Rvt; mkgkttuk fUtu yr;rh; htsJ rbtudt>
sturFb YJk mhtufUth &
fUvle fuU rtY bwg sturFb ;:t mhtufUth Gut "trJfU fUe
Wvt";t buk fUbe y:to; tid buk f{iUv fUe fUb ytJfU ni> RmfuU
fUtht attl fUe ttd; c\Z dge ni aqrfU Rmmu "trJfU fUe
Wdtne fUb ntu stYde, ntttrfU rfUY stlu Jttu ytJgfU fUtgo
yvrhJr;o; hnukde, snt ;fU rfU fUCe Ce ytih yr"fU gtm fUe
ytJgfU;t ni rsmmu ytdu attl fUe ttd; sw\zudt> ntt fuU
r=ltuk buk gnt attl fUe ttd; ;:t WvfUh fuU ylwhGt YJk
b Nr; fUe ttd; buk bnJvqto J]r ntulu mu, rsmu Wt;h =h
vh J]r ntulu fUt ylwbtl ni, attl fUe ttd; buk J]r ntude>
;:trv, r=Y dY muJtytuk fuU rtY d{tnfUtuk mu tt vtrhrbfU fUtu
gg fuU mt: vqr;o lnek fUe st hne ni stu fUtVUe n= ;fU fUvle
fUt ;wtl vt CtrJ; rfUgt ni>
mwyJmh &
_ nbthu J;obtl d{tnfUtuk fUe Gb;t buk rJ;th mu rhfUJhe fUe
btd, f{iUv fUt f{Ubt ;:t tid fUe ZwttRo buk J]r ntude>
_ mtJosrlfU ;:t rlse vGtuk tht :trv; rfUY st hnu nrh;
YfUef]U; Rvt; mkgkt fUvle fUtu Rvt; rbt ;:t mnc
fUtgtuo fuU rtY muJtytuk fUe vuNfUN fUhlu fUt yJmh =tl
fUh;t ni>
_ Fll YJk mnc Guttuk buk mwyJmhtuk fUe Ftus>
_ yg Xtum yvrN ;:t mtbd{e n;l ck"l buk rJrJ"efUht
fUe dwkstRN>
Fz r;Ju;l &
JMo fuU =tihtl fUvle Cth; buk rJrCt Rvt; mkgkttuk fuU rtY
fuUJt f{iUv rhfUJhe ;:t mnc fUtgtuo fuU fUthtucth buk tde :e,
stu tuFt btlfU Y Ym-17 fuU ylwmth fuUJt r;JMo fUthtucth
Fz btlt dgt ni> CtidturtfU Ctd tmkrdfU lnek ni gtukrfU
fUvle lu Cth; fuU ctnh fUthtucth mkatrt; lnek fUe ni>
ytNkfUtYu &
_ Rvt; mkgkttuk fuU yt"wrlfUefUht lu Wt; titurdrfUgt Nwh
fUe ni rsmfuU vrhttbJv f{iUv fUb Wvt ntu;e ni>
_ lY JuNfUtuk, rJNuMfUh rlse fUvrlgt, rhfUJhe fuU Gut buk
f{iUv fUt f{Ubt ;:t tid fUe ZwttRo fUh hne ni>
attleg rlvt=l mu mkckr"; rJteg rlvt=l vh rJJual &
=]rfUtut &
fUvle fuU fwUt ytg d; JMo fuU gn ytfU\zu f{UbN& ` 16,853

ttF ;:t ` 16,078 ttF fUe ;wtlt buk ` 16,463 ttF fuU
muJt Cth mrn; ` 17,491 ttF :e> d; JMo fUe ;wtlt buk
attl fUe ttd; 1.50 r;N; fUe btbqte J]r fuU v buk
=Ntoge dge ni> Fatuok buk J]r bwg;& rlJuNtuk fUe ttd;, simu
zest ;:t tunfUtuk buk J]r ;:t bnkdtRo Ctt buk J]r ;:t
fUtgovttfuUth fUboatrhgtuk fuU Ju;l buk vwlheGt nu;w tJ"tl ntulu
mu nwRo ni>
ntt fuU JMtuok buk Cth; buk Rvt; Wtud rJJ y:ogJ:t fuU
mt: vqto;& YfUef]U; nwyt ni> Wtud cnw; ne r;v"eo btntit
buk vrhatrt; ntu hnt ni> W; gtvth btntit buk YVU.Ym.Yl.Yt.
fUe cnw; bnJvqto CqrbfUt ni gtukrfU RmfUt mkattl bqt Guttuk
buk Rvt; mkgkttuk fuU mkattl fuU mt: YfUef]U; ni> J;obtl buk 60
r;N; fUt ctsth ykN YVU.Ym.Yl.Yt. fuU vtm ni> YVU Ym
Yl Yt fUt bwF d{tnfU Rvt; Wtud y:to; mut YJk yth
ytRo Yl Yt JMo 2013-2014 ;fU rJfUtm fuU rtY 30 ttF
xl ;fU vnwalu fUe ytuh yd{mh ni> YVU.Ym.Yl.Yt. Ce yvlu
J;obtl d{tnfUtuk fuU mt: ytdu c\Zudt ;:t ylwbtl ni rfU ytlu Jttu
JMtuok buk Rrzgl hutJu, nune Rzrx[s ytr= simu lY d{tnfUtuk fUtu
stu\zudt> fUvle fUtu dtu=tb ck"l, Fll fuU Gut buk yr"fU fUtgo
fUe Wbe= ni> fUvle lu awltir;gtuk fUt mtblt fUhlu ;:t Wmu
mtbgo buk c=tlu fUe Gb;t fUtu rm rfUgt ni> YVU.Ym.Yl.Yt.
fuU attl fUe rJNuM;t mu yvrN mtbd{e mu "t;w lwfUmtl ;:t
Wsto YJk bqgJ"ol fUe ca; ntu;e ni> "trJfU fUe rhfUJhe ;:t
tid vwlaf{Ut mu Rvt; mkgkttuk fUtu r; JMo ` 5,176 fUhtu\z
fuU ytmvtm fUe hfUb fUt rJteg ttC ntu;t ni> RmfuU yr;rh;
btlJ mkmt"l rJfUtm

gufU JMo fUe ;hn fUvle lu JMo fuU ythkC buk cltY dY JtrMofU
gtuslt fuU yt"th vh r;r; rNGt mk:tltuk fuU mt:-mt:
bqt WvfUh rlbto;tytuk fuU btgb mu fUvle fuU fUtgovttfUtuk ;:t
fUtgovttfuUth fUboatrhgtuk fuU ttC nu;w JMo 2011-12 fuU =tihtl
rJrJ" rNGt (yt;rhfU fuU mt:-mt: ctnhe) fUtgof{Ub ytgturs;
fUe ni>
fUboatrhgtuk fuU JtrMofU =G;t rlvt vttuk buk mbr:o; rNGt
ytJgfU;tytuk fuU mkck" buk mkckr"; tr"fUthtuk fUe ylwNkmt fuU
yt"th vh rJrJ" rNGt fUtgof{Ubtuk fuU rtY fUboatrhgtuk fUt
24
a public sector the company is required to comply with

various codal formalities before responding to customers
requirement.
Risks & Concerns:
Expansion in capacity, of our existing customers will

increase demand of recovery, processing of scrap and
handling of slag.
The greenfield integrated steel plants, being commissioned

by public and private parties provides the opportunities
for the company to offer services for Steel Mill and allied
activities.
The main risk and the area of concern for the Company is
reduction in availability of metallics i.e. less arisal of scrap in
the slag. Due to this the cost of operation has increased since
there will be less recovery of metallics although the activities
required to be carried out will remain unchanged, even
sometimes more effort is required which further adds cost of
operation. There is significant increase in the cost of operation
and maintenance of equipment and cost of manpower in the
recent past which is likely to be increased at a higher rate
resulting in increase in cost of operation. However, the
remuneration received from the customers for the services
provided is not being compensated with the expenditure which
in turn has affected the balance sheet of the company to a
great extent.
Exploring opportunities in Mining & allied sectors.
SEGMENT REPORTING :
Scope of diversification in other Solid Waste and Material

Handling Management.
During the year the company was engaged only in the business
of scrap recovery and allied jobs for various steel plants in
India which as per Accounting Standard AS-17 is considered
the only reportable business segment. The geographical
segmentation is not relevant, as the company has no business
operation outside India.
High cost of operation due to high wages of PSU.
Difficult to compete with private contractors paying much

lower wages than FSNL.
Opportunities:
Threats:
Modernization of Steel Plants has introduced advanced

technologies resulting in less generation of scrap.
New entrants, specially private companies, in the area of

recovery, processing of scrap and handling of slag.
DISCUSSION ON FINANCIAL PERFORMANCE WITH

RESPECT TO OPERATIONAL PERFORMANCE :
Outlook:
The total earning of the company was ` 17,491 lakhs including

service charges of ` 16,463 lakhs as compared to the previous
years figure of ` 16,853 lakhs and `16,078 lakhs respectively.
The cost of operation has shown a marginal increase of 1.50%
as compared to the previous year. The increase in the expenses
is mainly due to increase in the cost of inputs like diesel &
lubricants and increase in the wages of employees due to
increased Dearness Allowance and provision for revision in
the wages of non-executive employees.
Steel industries in India has fully integrated with the world

economy in the recent years. The Industry is operating in a
very competitive environment. In the above business
environment FSNL is having a very important role as their
operation is integrated with the Steel Plants operation in the
core areas. FSNL is having a market share of 60% at present.
The steel industry viz. SAIL and RINL, the major customers of
FSNL is poised for growth to reach 30 million ton by 2013-14.
FSNL will also grow with the existing customer and expected
to add new customers such as Indian Railways, Heavy
Industries etc. in the coming years. Company is expecting more
jobs in the area of Ware House Management, Mining. The
company has a proven ability to face challenges and turn them
into strength. The special feature of FSNLs operation results
in saving of metal loss and energy and value addition to the
waste material. Financial benefit to the Steel Plants from
recovery of metallics and recycling of slag amounts to around
` 5,176 crores per year. Further due to improvement in quality
the market value of metallics has increased substantially which
will fetch additional revenue to the Steel Plants.
HUMAN RESOURCES DEVELOPMENT

Like every year, the company had arranged various training
programmes (Inhouse as well as External) during the year
2011-12 for the benefit of Executives and Non-executive
employees of the company, based on the yearly plan chalked
out at the beginning of the year, through reputed training
institutions as well as the OEMs.
On the basis of recommendations of the concerned authorities
with regard to the training needs endorsed in the Annual
Performance Appraisal forms of the employees, the nomination
25
ltbtkfUl rfUgt dgt ;trfU Wnuk mkckr"; Gut buk yvlu fUtiNt ;:t
mtbgo fUtu c\Ztlu fUt yJmh rbtu ;:t ytiturdfU titurdfUe buk
r=l-r;r=l rJfUtm mu Jgk fUtu yJd; fUh mfuU>
rNGt fuU rtY mbSti;t ttvl tgtuk fUt IWf]UO ;h vqht
fUh rtgt dgt ni>
ntu mfU;t ni stu mtJosrlfU Gut fuU Rvt; mkgt mu ltbtkfUl

fuU yt"th vh fUthtucth fUe rlhk;h;t mrn; fUvle fuU attltuk
fuU rtY YfU VUfoU fUh mfU;t ni>
yt;rhfU rlgktt ttte ;:t WmfUe vgtot;t &
r=ltkfU & 09.08.2012

:tl & rCttRo
rl=uNfU bzt fuU Jt;u YJk WlfUe ytuh mu,u
fUvle fuU fUthtucth Wgtuk fUe trt fuU rtY fUvle buk yt;rhfU
rlgktt fUe YfU mVUt ttte ni stu yg ct;tuk fuU mt: Nw;t
;:t rJteg Fztuk fUe ;vh;t, attltuk fUe =G;t, rl"torh;
ler;gtuk YJk rf{Ugtytuk fuU mt: vttl ;:t fUtlql YJk rlgbltuk fuU
mt: vttl fUh;t ni>
Yxtule atfUtu
ckt rl=uNfU
ce. ce rmkn
rl=uNfU
ckt rl=uNfU fUe DtuMKt
yt;rhfU tuFt vheGt fUtgo buk J;kt;t mwrlrt; fUhlu ttrtgtuk

;:t yt;rhfU rlgktttuk buk vth=rNo;t vh ct =ulu nu;w fUvle
fUt yt;rhfU tuFt vheGt ml=e tuFtvtt fuU ctnhe VUbo fUtu
mtikvt dgt ni> yt;rhfU tuFt vheGt fUt r;Ju=l ck"l fUtu
mkNtu"l fUtgoJtne fuU rtY ytJr"fU ;w; rfUgt st;t ni>
bik DturM; fUh;t nw rfU fUvle tht bzt fuU m=gtuk ;:t Jrh
ck"l fuU rtY yrCfUrv; YJk ykdef]U; ytath mkrn;t r;btl
r=. 30.04.2008 fUtu vrhmkarh; mkfUv fuU ylwmth ni ;:t
bzt fuU mCe m=g ;:t Jrh ck"l lu rJteg JMo
2011-12 fuU rtY ytath mkrn;t fUt =]\Z;t mu vttl fUhlu fUe
vwr fUe ni>
msd J;g &

ck"l aato ;:t rJtuMt buk rJJhrtgtuk fUvle fuU Wug ;:t
yvuGtytuk fUt Jtol fUh;t ni, fUtu ytdu rJJhrtgtuk buk =uF mfU;u
ni> Jt;rJfU vrhttb nfUefU; buk g; y:Jt rlrn; mu ytd
Yxtule atfUtu
ckt rl=uNfU
26
of employees for various training programmes were made, as

a measure of enhancing their skill & abilities in the concerned
field, and for acquainting them with the day-to-day
developments in the industrial technologies.
to the companys operations including continuation of business

on nomination basis from the public sector steel plant
"Excellent" level of MOU targets for training, has been achieved.

INTERNAL CONTROL SYSTEM AND THEIR ADEQUACY :
Dated : 09.08.2012
Place : Bhilai
The company has an efficient system of internal control for

achieving the business objectives of the company which interalia includes accuracy and promptness of financial reporting.
Efficiency of operations, compliance with the laid down policies
and procedures and compliance with law and regulations.
Antony Chacko
Managing Director
B. B. Singh
Director
MDS DECLARATION
To ensure independence to the internal audit function

emphasizing transparency in the systems and internal controls,
the internal audit of the company is entrusted to external firms
of Chartered Accountants. The reports of Internal Audit are
periodically submitted to the management for corrective action.
I declare that the Model Code of Conduct for Board Members

and Senior Management designed and adopted by the
company vide resolution by circulation on 30.04.2008 and all
the Board Members and Senior Management have affirmed
compliance with the Code of Conduct for the Financial Year
2011-2012.
CAUTIONARY STATEMENT:
Statements in the Management Discussion and Analysis
describing the Companys objectives and expectations may be
forward looking statements. Actual results may differ materially
from those expressed or implied which could make a difference
Antony Chacko
Managing Director
27
VuUhtu f{iUv rldb rtrbxuz fuU m=gtuk fuU rtY

tuFt vheGfU fUt r;Ju=l
nblu VuUhtu f{iUv rldb rtrbxuz (fUvle) fUt r=lktfU 31 btao, 2012 fUt mktl ;wtl-vt ;:t Wm vh Wvtc Wme r;r: fUtu
mbtt JMo mu mkckr"; fkUvle fuU ttC YJk ntrl Ft;t fUt Ce tuFt vheGt rfUgt> RJ rJteg rJJhrtgtuk fUt Wth=trgJ fkUvle fuU
ck"l fUt ni> nbthe rsbu=the Rl rJteg rJJhrtgtuk vh nbthu tuFt vheGt fuU yt"th vh YfU htg g; fUhlt ni>
nblu yvlt tuFt vheGt Cth; buk mtbtg;& JefUtgo tuFt vheGt btlfUtuk fuU ylwmth rfUgt ni> Wl btlfUtuk fUe ytJgfU;t ni rfU
nb gtuslt cltJuk ;:t gwr;mkd; ytJtml fUe yrCtrt fuU rtY tuFt vheGt fUhu rfU gt rJteg rJJhrtgt ;trJfU v mu rbgt
rJJhte mu bw; ni> tuFt vheGt bu stka fuU ;tih vh rJteg rJJhrtgtuk buk mb:ofU hfUbtuk ;:t fUxefUhttuk fuU mtg fUt vheGt
fUhlt Ntrbt ni> tuFt vheGt buk Wvgtud rfUY dY tuFt rmt; ;:t rJteg rJJhrtgtuk fUtu ;igth fUhlu buk ck"l tht cltY dY
bnJvqto tfUtltuk fUt rl"toht fUhlu fuU mt:-mt: mbd{ rJteg rJJhrtgt ;wr; fUt bqgtkfUl fUhlt Ce Ntrbt ni> nb btl;u nik
rfU nbtht tuFt vheGt nbthe htg fuU rtY YfU Wra; yt"th =tl fUh;t ni>
simt rfU fkUvrlgtuk (tuFt vheGfU fUt r;Ju=l) fUt yt=uN, 2003, simt rfU Cth; fUe fkUvrlgtuk fUt yr"rlgb, 1956 fUe "tht 227
fUe Wv-"tht (4Y) (RmfuU ytdu yr"rlgb fuU v buk mk=rCo;) fUe N;tuk buk Cth; fuU fuUeg mhfUth ht sthe \fUvle (tuFt vheGfU
fUt r;Ju=l) (mkNtu"l) yt=uN, 2004 (RmfuU ytdu Iyt=uNO fuU v buk mt:-mt: mk=rCo;) fuU tht mkNtur"; ni, nb fUr:; yt=uN
fuU yJwAu= 4 ;:t 5 buk Jrto; rJMgtuk vh YfU rJJhte mktlfU buk mktl fUh;u nik>
W; mk=rCo; mktlfU buk yvle rxvrtgtu fUhlu fuU rtY nb mqra; fUh;u ni rfU &
1.
nblu mCe stlfUthe ;:t vefUhttuk fUtu, stu nbthu tuFt vheGt fuU gtusl fuU rtY ytJgfU :u, tt rfUgt>
2.
nbthe htg buk fkUvle lu mbwra; tuFt Ft;tytuk fUtu hFt ni, simt rfU fUtlqle v mu she ni, yc ;fU fuU Wl cne-Ft;tuk
fuU nbthu vheGt mu nbuk fUx ntu;t ni>
3.
Rm r;Ju=l fuU mt: gJ]; ;wtl-vt, ttC YJk ntrl Ft;t ;:t lfU=e Jtn rJJhte tuFt Ft;tuk fuU mt: ylwck" buk ni>
4.
nbthe htg buk, Rm r;Ju=l fuU mt: gJ]; ;wtl-vt ;:t ttC YJk ntrl Ft;t yr"rlgb fUe "tht
(3C) buk Jrto; tuFt btlfUtuk fUt ylwvttl fUh;t ni>
5.
Cth; mhfUth, rJt bktttg, fkUvle fUtgo rJCtd yr"mqalt f{U.se Ym yth 829 (Ro), r=lktfU 21 yxqch, 2003 fUe N;tuo buk
mhfUthe fkUvrlgtu fUtu yr"rlgb fUe "tht 274 fUe Wv-"tht (1) fuU Fkz (se) fuU tJ"tl fUe gtug;t mu Aqx ni>
6.
nbthe htg buk ;:t nbthe Wtb stlfUthe fuU rtY YJk nbuk r=Y dY vefUhttuk fuU ylwmth bnJvqto tuFt ler;gtuk ;:t Wmvh
tuFtytuk vh rxvrtgtuk fuU mt: vrX; fUr:; tuFt Cth; buk mtbtg;& JefUtgo tuFt btlfUtuk fuU mt: ylqv;t buk Fht YJk Wra;
=]rfUtut =tl fUh;t ni>
1. 31
btao,
2012
211
fUe Wv-"tht
fUtu fkUvle fuU fUtgo-fUttv fUt ;wtl-vt fuU btbtu buk>
2.
Wm r;r: fUtu mbtt JMo fuU rtY fkUvle fuU ttC fUt ttC YJk ntrl Ft;t fuU btbtu buk, ;:t
3.
Wm r;r: vh mbtt JMo fuU rtY fkUvle fuU lfU=e Jtntuk fUt lfU=e Jtn rJJhte fuU btbtu buk>
Jt;u htsu mt=
ml=e tuFtvtt
:tl & rCttRo,

r=ltkfU & 30 sql,
htt FzutJtt
mtSu=th
m=g;t f{ . 079628
VUbo vksefUhK f{U. 000203C
2012
28
AUDITORS REPORT TO THE MEMBERS OF

We have audited the attached Balance Sheet of Ferro Scrap Nigam Limited (the company) as at 31st March
2012 and also the Profit & Loss Account for the year ended on that date annexed thereto. These financial
statements are the responsibility of the companys management. Our responsibility is to express an opinion on
these financial statements based on our audit.
We conducted our audit in accordance with the auditing standard accepted in India. Those standards require that
we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of
material misstatement. An audit includes examining, on a test basis, evidence supporting the amount and
disclosures in the financial statements. An audit also includes assessing the accounting principles used and
significant estimates made by the management in the preparation of the financial statement, as well as evaluating
the overall financial statements presentation. We believe that our audit provides a reasonable basis for our
opinion.
As required by the companies (Auditors Report) Order, 2003 as amended by companies (Auditors Report)
(Amendment) Order, 2004(hereinafter together referred to as the order), issued by the central government of
India in terms of sub section (4A) of section 227 of The companies Act, 1956 (hereinafter referred to as the Act)
we enclose in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the said Order.
Further to our comments in the Annexure referred to above, we report that:
(i)
We have obtained all the information and explanations, which to the best of our knowledge and belief
were necessary for the purpose of our audit;
(ii)
In our opinion, proper books of account as required by law have been kept by the company so far as
appears from our examination of those books;
(iii)
The balance sheet, the profit and loss account and the cash flow statement dealt with by this report
are in agreement with the books of account;
(iv)
In our opinion, the Balance Sheet and Profit and Loss account dealt with by this report comply with
the accounting standards referred to in sub-section (3C) of section 211 of the Act;
(v)
In terms of government of India, Ministry of Finance, Department of company Affairs Notification No.
GSR 829(E) dated 21st October, 2003 Government companies are exempt from the applicability of
provision of clause(g) of sub-section (1) of section 274 of the Act;
(vi)
In our opinion and to the best of our information and according to the explanations given to us, the said
accounts read with significant accounting policies and notes on accounts thereon give a true and fair
view in conformity with the accounting principles generally accepted in India
a.
In the case of the Balance Sheet of the state of affairs of the company as at 31st March 2012.
b.
In the case of the Profit and Loss account, of the profit of the company for the year ended on that
date; and
c.
In the case of the Cash flow statement, of the cash flows of the company for the year ended on
that date.
For RAJENDRA PRASAD

CHARTERED ACCOUNTANTS
RAHUL KHANDELWAL
Partner
Membership No. 079628
Firm Regn. No.000203C
Place : Bhilai
Date : 30th June, 2012
29
tuFt vheGfU fuU r;Ju=l fUt mktlfU

mbr;r: fuU nbthu r;Ju=l fuU ylwAu=
1.
3 fUtu
mk=rCo;&
(fU) fkUvle lu ytr;gtuk, rsmfUt Jt;rJfU ttd; vta nsth vgu mu yr"fU mu yr"fU lnek ni, fUtu Atu\zfUh :tge ytr;gtuk
fUt btttbfU gtiht ;:t yJr:r; mrn; mkvqto gtiht =Nto;u nwY mbwra; yrCtuF cltY hFt ni>
(F) ck"l tht
ylwmth Rm
fuU yCtJ buk
mgtvl fuU
JMo fuU =tihtl fwUA :tge ytr;gtuk fUt Ctir;fUeg mgtvl rfUgt dgt> nbuk =e dge mqalt YJk vefUhttuk fuU
mgtvl vh rfUme fUth fUe ;trJfU rJmkdr; lnek vtge dge> ;:trv, Ctir;fU mgtvl fuU rfUme rlra; fUtgof{Ub
nb yvle htg =ulu fUe r:r; buk lnek ni rfU J;obtl ttte Wra; yk;htttuk buk mCe :tge ytr;gtuk fUt Ctir;fU
rtY Wvckr"; fUh;t ni>
(d) JMo fuU =tihtl :tge ytr;gtuk fUt fUtuRo mthdrCo; Fz fUt rlvxtht lnek rfUgt dgt ;:t RmrtY gn art; mk:tl "thtt
fUtu CtrJ; lnek fUh;t ni>
2.
(fU) JMo fuU =tihtl ck"l tht J;w-mqragtuk fUt Ctir;fUeg mgtvl rfUgt dgt ni> nbthe htg buk mgtvl fUe ytJ]rt ;foUmkd;
ni>
(F) nbthu rJath mu, ck"l tht vttl rfUY dY J;w-mqragtuk fuU Ctir;fU mgtvl fUe rf{UgtY fUvle fuU ytfUth YJk RmfuU
gtvth fUe f]Ur; fuU mkck" buk ;foUmkd; ;:t vgtot ni>
(d) J;w-mqae yrCtuFtuk fuU nbthu vheGt fuU yt"th vh nbthe htg buk fkUvle J;w-mqae fuU mbwra; yrCtuF fUtu cltY hF;e
ni > cne yrCtuFtuk fUe ;wtlt buk J;w-mqae fuU Ctir;fU mgtvl vh vtge dge rJmkdr;gtu fUvle fuU attltuk fuU mkck" buk
;trJfU lnek :e> ;:trv, Wmu Wra; v mu tuFt Ft;t buk rfUgt dgt ni>
3.
(fU) fkUvle lu yr"rlgb fUe "tht 301 fuU yk;do; vturM; vkse buk mrbrt; fkUvrlgtuk, VUbtuo y:Jt yg vGtuk fUtu fUtuRo Ce r;Cq;
gt yr;Cq; }Uttuk fUtu bksqh lnek fUe ni> ;=lwmth yt=uN fUt ylwAu= (3) (y) mu (3) (D) ttdq lnek ni>
(F) fkUvle lu yr"rlgb fUe "tht 301 fuU yk;do; vturM; vkse buk mrbrt; fkUvrlgtuk, VUbtuo y:Jt yg vGtuk mu fUtuRo r;Cq;
gt yr;Cq; }Ut lnek te ni> ;=lwmth yt=uN fUt ylwAu= (3)(Ro) mu (3)(se) ttdq lnek ni>
4.
nbthe htg buk ;:t nbuk =e dge mqalt YJk vefUhttuk fuU ylwmth, :tge ytr;gtuk fuU f{Ug YJk btt fuU rJf{Ug fuU rtY gnt
fkUvle fuU ytfUth ;:t RmfuU gtvth fUe f]Ur; fuU ylwv YfU vgtot yt;rhfU rlgktt ttte ni> scrfU, fkUvle fuU Ft;tuk YJk
yrCtuFtuk fUt nbthu vheGt fuU yt"th vh ;:t nbuk =e dge mqalt YJk vefUhttuk fuU ylwmth nb l ;tu WmfuU vth yt;u nik
l ne nbuk fUr:; ykt;rhfU rlgktt ttte buk c\ze Ftrbgtuk fUtu mw"thlu nu;w fUtuRo rlhk;h rJVUt;t fUe mqalt =e dge ni>
5.
fUvle lu Yumu fUtuRo btbttuk fUtu =so lnek fUe ni rsmu rfU yr"rlgb fUe "tht
ni>
6.
fkUvle lu sl;t mu sbtytuk fUtu JefUth lnek fUe ni> ;=lwmth, yt=uN fUt ylwAu= (6) ttdq lnek ni>
7.
nbthe htg buk fkUvle fUt yt;rhfU tuFt vheGt ttte mtbtg;& ytfUth ;:t RmfuU fUthtucth fUe f]Ur; fuU ylwv ni>
8.
yr"rlgb fUe "tht 209 fUe Wv-"tht (1) fuU Fkz (ze) fuU y;do; fuUeg mhfUth tht ttd; yrCtuFtuk fUt hF-hFtJ rl"torh;
lnek rfUgt dgt ni>
9.
(fU) nbuk =e dge mqalt YJk vefUhttuk fuU ylwmth ;:t fUvle fuU yrCtuFtuk fUt nbthu vheGt fuU yt"th vh CrJg rlr" (CrJg
rlr" cfUtgtuk fUtu WmfuU yvlu Aqx tt CrJg rlr" cfUtgtuk fUtu WmfuU yvlu Aqx tt CrJg rlr" gtm buk sbt rfUgt st;t
ni) mrn; yrJJtr=; Ji"trlfU cfUtgt, ytgfUh, rJf{Ug fUh/bqg mbtrn; fUh, "l fUh, mebt NwfU, WvfUh YJk fUtuRo yg
JitrlfU cfUtgtuk, simt rfU fkUvle fuU rtY gtug ni, fUtu Wvgw; tr"fUthtuk fUtu rlgrb; v mu sbt rfUgt dgt ni>
301
fuU ylwmth vkse bu =so rfUgt stlt ytJgfU
simt nbuk gn c;tgt dgt ni rfU rlJuNfU rNGt ;:t mkhGt rlr", fUboathe htg cebt gtuslt, rJf{Ug fUh YJk ytcfUthe
NwfU fuU vrhug buk fkUvle vh cfUtgt lnek :t>
fUvle yrtrlgb, 1956 fUe ttht 441 fuU y;do; WvfUh fuU vrhug b gnt fUtuRo =ug ln ntudt gtrfU Cth; fuU fuU={eg
mhfUth tht yc ;fU WU fUr:; ttht fUtu CtJNet ln rfUgt dgt ni>
30
ANNEXURE TO AUDITORS REPORT

Referred to paragraph 3 of our report of even date,
i.
ii.
iii.
(a)
The company has maintained proper records showing full particulars including quantitative details and situation of fixed
assets except the assets whose actual cost does not exceed five thousand rupees.
(b)
Some of the fixed assets were physically verified during the year by the management. According to the information and
explanation given to us no material discrepancy is noticed on such verification. However, in the absence of any definite
programme of physical verification, we are not in a position to give our opinion that the present system provides for physical
verification of all the fixed assets at reasonable intervals.
(c)
No substantial part of Fixed assets were disposed off during the year, and therefore, do not affect the going concern
assumption.
(a)
The inventory has been physically verified by the management during the year. In our opinion, the frequency of verification
is reasonable.
(b)
In our opinion, the procedures of physical verification of inventories followed by the management are reasonable and
adequate in relation to the size of the company and the nature of its business.
(c)
On the basis of our examination of the inventory records, in our opinion, the company is maintaining proper records of
inventory. The discrepancies noticed on physical verification of inventory as compared to book records were not so material
having regard to the operation of the company. However, the same has been properly dealt with in books of account.
(a)
The company has not granted any loans, secured or unsecured to companies, firms or other parties covered in the register
maintained under section 301 of the Act. Accordingly paragraphs (iii) (a) to (iii) (d) of the order are not applicable.
(b)
The company has not taken any loans, secured or unsecured from companies, firms or other parties covered in the register
maintained under section 301 of the Act. Accordingly paragraphs (iii) (e) to (iii) (g) of the order are not applicable.
iv.
In our opinion and according to information and explanation given to us, there is an adequate internal control system commensurate
with the size of the company and the nature of its business, for the purchase of fixed assets and for the sale of goods. Further, on
the basis of our examination of books and records of the Company and according to the information and explanations given to us,
we have neither come across nor have been informed of any continuing failure to correct major weakness in the aforesaid internal
control system.
v.
The company has not entered into any such transactions that are required to be entered into register in pursuance of section 301
of the Act.
vi.
The Company has not accepted deposits from the public. Accordingly, paragraph (vi) of the order is not applicable.
vii.
In our opinion, the companys internal audit system is generally commensurate with the size and nature of its business.
viii.
Maintenance of cost records has not been prescribed by the Central Government under clause (d) of sub-section (1) of section 209
of the Act.
ix.
(a) According to the information and explanation given to us and on the basis of our examination of the records of the company,
undisputed statutory dues including Provident Fund (Provident Fund dues is deposited to its own exempted Provident Fund
Trust), Income Tax, Sales Tax/ VAT, Wealth Tax, Custom Duty, Cess and Any other statutory dues as applicable to the
Company have generally been regularly deposited with the appropriate authorities.
As explained to us the Company did not have dues on account of Investor Education and Protection Fund, Employee state
Insurance scheme, sales tax and excise duty.
There were no dues on account of cess under section 441A of the Companies Act, 1956 since the aforesaid section has not
yet been made effective by the central Government of India.
31
(F) nbuk =e dge mqalt fuU ylwmth gnt rJJtr=; Ji"trlfU cfUtgt ni rsmu sbt lnek rfUgt dgt ni, simt rfU leau r=gt
st hnt ni
ygt=uN
fUt ltb
cfUtgt
fUt fUth
rJJt= fuU ;n;T htrN

yc ;fU sbt ln
(ttF ` b)
yJrt, rsmmu
hfUb mkcrk t;
ni
VUtuhb, snt rJJt= tkrc;

ni
rJt yrtrlgb 1994

(y;l mkNturt;)
zwchw e RfUtRo buk IfUtdtuo nizrtkd

muJtytO vh muJt fUh, simt
rfU fuUeg ytcfUthe stsvwh
fuU y"eGfU lu btkd fUe ni
(rfUgt dgt Nw Cwd;tl)
42.03
lJch, 2002
mu yit, 2004
vtilJtor=fU trtfUth
(meRYmxeYxe, fUtutfUt;t)
rJt yrtrlgb, 1994

(y;l mkNturt;)
rCttRo, =wdtovhw , rJstd, ztutJe

YJk zwcwhe RfUtRo buk Igtvth
vqhfU muuJtyt vh muJt fUh,
simt rfU fuUeg ytcfUthe
YJk mebt NwfU, htgvwh fuU
ytgw; tht yt=urN; ni
660.72
10.09.2004
vtilJtor=fU trtfUth
(meRYmxeYxe, lRo r=e)
rJt yrtrlgb 1994

(y;l mkNturt;)
ctufUthtu RfUtRo buk Igtvth

vqhfU muJtytI vh muJt fUh
YJk mebt NwfU, htae fuU
1,395.92
rJt yrtrlgb 1994

(y;l mkNturt;)
clovwh RfUtRo buk Igtvth

vqhfU muJu tyt vh muJt fUh
YJk mebt NwfU, ctutvwh fuU
yr;rh; ytgw; YJk fuUeg
ytcfUthe YJk mebt NwfU,
ytmlmtut fuU mntgfU
71.93
rm;ch, 2004 mu VUhJhe,

2005 ;:t yit, 2005
mu rm;kch, 2006
ytgwU (yvet), fUtutfUt;t
rJt yrtrlgb 1994

(y;l mkNturt;)
rCttRo RfUtRo buk IfUtdtuo

nizrtkd muJtyt vh muJt fUh
YJk mebt NwfU, htgvwh fuU
324.01
swttRo, 2003
mu rm;kch, 2007
vtilJtor=fU trtfUth
(meRYmxeYxe, lRo r=e)
rJt yrtrlgb 1994

(y;l mkNturt;)
zwchw e RfUtRo buk Igtvth

vqhfU muJtytI vh muJt fUh
simt rfU fuUeg ytcfUthe,
CwJluJh fuU ytgw;
lu btkd fUe ni
256.02
bRo, 2004 mu
btao 2007
ytgwU, fuU={eg ytcfUthe

CwJluJh-1
rJt yrtrlgb 1994

(y;l mkNturt;)
=wdtovhw Rvt; mkgk t YJk Yttpg

Rvt; mkgkt buk Igtvth vqhfU
muJtyt ;:t fUtdtuo nizrtkd
muJtyt vh muJt fUh
1973.99
yit, 2003 mu btao

2008 J yxqch, 2003 mu
lJch, 2008
vtilJotr=fU trtfUth
mu
28.02.2005
01.03.2005 mu
31.1.2008
32
ytgwU, htpae YJk vtilJtor=fU

trtfUth (meRYmxeYxe,
fUtutfUt;t)
(b) According to the information given to us, there are disputed statutory dues which have not been deposited as given herein below:
Name of the Statute
Nature of Dues
Amount under dispute

not yet deposited
(` in lacs)
Period to which
the amount
ralates
Forum where the

disputes are
pending
Finance Act, 1994

(As amended up
to date)
Service Tax on
"Cargo Handling
Services" at Duburi
unit as demanded by
Suptd. of Central
Excise, Jajpur.
(net of payment made)
42.03
Nov 2002
to
Apr 2004
Apellate Authorities,
(CESTAT, Kolkata)
Finance Act, 1994

(As amended up
to date)
Service Tax on
"Business Auxiliary
Services" at Bhilai
Durgapur, Vizag,
Dolvi & Duburi unit as
ordered by Commission
of Central Excise and
Customs Raipur
660.72
10.09.2004
to
28.02.2005
(CESTAT, New Delhi)
Finance Act, 1994

(As amended
upto date)
Service Tax on
Business Auxiliary
Services at
Bokaro Unit as
ordered by
Commissioner, Central
Escise and Custom,
Ranchi
1,395.92
01.03.2005
to 31.01.2008
Commissioner,
Ranchi and
Appellate Authorities,
(CESTAT, Kolkata)
Finance Act, 1994

(As amended up
to date)
Service Tax on
"Business Auxiliary
Services" at
Burnpur unit as
ordered by Additional
Excise & Customs,
Bolpur and Assistant
Escise and Custom,
Asansol
71.93
Sept .2004
to Feb. 2005 &
Apr 2005 to
Sept 2006
Commissioner
(Appeals), Kolkata
Finance Act, 1994

(As amended up
to date)
Service Tax on
"Cargo Handling
Services" at Bhilai unit
as ordered by
Escise and Custom,
Raipur
324.01
July 2003
to
Sept 2007
(CESTAT, New Delhi)
Finance Act, 1994

(As amended
upto date)
Service Tax on
Cargo handling
Services at
Duburi unit Demanded
by Commissioner,
Central Excise,
Bhubaneswar
256.02
May 2004
to
Mar 2007
Commissioner,
Central Excise
Bhubhaneshwar-1
Finance Act, 1994

(As amended
upto date)
Service Tax on
Business Auxiliary
Services and Cargo
Handling Services
at Durgapur Steel
Plant and Alloy
Steel Plant
1,973.99
Apr 2003
to
Mar 2008 &
Oct 2003
to
Nov 2008
Appellate
Authorities,
(CESTAT,
Kolkata)
33
ygt=uN
fUt ltb
cfUtgt
fUt fUth
rJJt= fuU ;n;T htrN

yc ;fU sbt ln
(ttF ` b)
yJrt, rsmmu
hfUb mkcrk t;
ni
VUtuhb, snt rJJt= tkrc;

ni
rJt yrtrlgb 1994

(y;l mkNturt;)
=wdtovhw Rvt; mkgk t buk Igtvth

vqhfU muJtyt ;:t fUtdtuo
nizrtkd muJtyt vh muJt fUh
482.31
yit, 2008 mu bRo,

2009 J sql, 2009 mu
rm;ch, 2009
ytgwU, fUtutfUt;t YJk vtilJotr=fU

trtfUth (meRYmxeYxe,
fUtutfUt;t)
rJt yrtrlgb 1994

(y;l mkNturt;)
zwchw e RfUtRo buk fUtdtuo nizrtkd

muJtyt vh muJt fUh
simt rfU ytgw;, CwJluJh
fuU lu btkd fUe ni
69.64
yit, 2009 mu
btaoo 2010
ytgwU, fuU={eg ytcfUthe,

CwJluJh
rJt yrtrlgb 1994

(y;l mkNturt;)
=wdtovhw RfUtRo buk Igtvth vqhfU

muJtyt vh muJt fUh muJtyt
simt rfU ytgw;, fuUeg
ytcfUthe, ctutvwh lu btkd
fUe ni
74.86
yxqch, 2009 mu
btao, 2010
vtilJotr=fU trtfUth
W\zemt rJf{Ug fUh

yrtrlgb, 1947
htWhfuUtt RfUtRo buk rJf{Ug

fUh ;:t JuN fUh fuU rtY
simt rfU W\zemt rJf{Ug fUh
rJCtd lu btkd fUe ni
43.56
2002-2003
rJf{Ug fUh gtgtr"fUhK,

fUxfU
W\zemt ldhvtrtfUt
yr"rlgb, 1950
yr"mqra; Gut vrhM=, htWhfuUtt

(Rvt; ldhe) tht zvhtu,k
ztushtuk ytr= simu Cthe
Cq-WvfUhtuk vh awdk e
1,113
W\zemt Wa gtgttg
(10) rJteg JMo fUe mbtrt ;fU fkUvle fUtu fUtuRo mkra; Dtxt lnek ni ;:t nbthu tuFt vheGt fuU tht ytJrh; rJteg JMo ;:t XefU
vqJoJ;eo rJteg JMo fuU =tihtl lfU= lwfUmtl Wvd; lnek nwyt> ;=lwmth yt=uN fUt ylwAu= (10) ttdq lnek ni>
(11) fkUvle lu rJteg mk:tltuk y:Jt cikfUtuk fUtu cfUtgt htrN fUe awfUti;e buk aqfU lnek fUe ni>
(12) fkUvle lu ykNtuk, }Ut-vttuk ;:t yg r;Cqr;gtuk fUtu rdhJe fuU tht mwhrG; fUh fUtuRo }Ut YJk yrd{b bksqh lnek fUe ni> ;=lwmth,
yt=uN fUt ylwAu= (12) fkUvle vh ttdq lnek ni>
(13) fkUvle
rax VkUz y:Jt rlr"/gqawyt culerVUx VkUz/mtumtRoxe lnek ni> ;=lwmth, yt=uN fUt vrhAu= (13) fkUvle vh ttdq lnek
ni>
(14) fkUvle
ykNtuk, r;Cqr;gtuk, }Ut-vttuk ;:t yg rJrlJuNtuk buk tul-=ul y:Jt gtvth lnek fUh hne ni>
(15) fkUvle
lu cikfU y:Jt rJteg mk:tltuk mu yg tht rtY dY }Uttuk fuU rtY fUtuRo sbtl; lnek =e ni>
(16) fkUvle
lu fUtuRo mtJr" }Ut tt lnek fUe ni, y;YJ mkc ylwAu= ttdq lnek ni>
(17) yvfUtrtfU
yt"th vh WXtY dY rlr"gtuk fUt Wvgtud tkce yJr" fuU rtY lnek fUe dge ni ;:t yvtJr"fU ytr;gt buk vqkse
tdtlu fuU rtY rfUme =eDofUtrtfU rlr"gtuk fUt Wvgtud lnek rfUgt dgt ni>
(18) fkUvle
lu yr"rlgb fUe "tht

lnek fUe ni>
(19) ylwAu=
301
fuU y;do; vturM; vkse buk ytlu Jttu vGtuk ;:t fkUvrlgtuk fUtu ykNtuk fUe fUtuRo vqJtor"btle ytJkxl
(19) fUe rJMg-J;w fkUvle fuU rtY ttdq lnek ni gtukrfU fkUvle lu JMo fuU =tihtl rfUme }Ut-vttuk fUtu sthe lnek fUe
34
Name of the Statute
Nature of Dues
Amount under dispute

not yet deposited
(` in lacs)
Period to which
the amount
ralates
Forum where the

disputes are
pending
Finance Act, 1994

(As amended
upto date)
Service Tax on
Business Auxiliary
Services and Cargo
Handling Services at
Durgapur Steel Plant
482.31
Apr 2008
to
May 2009 &
June 2009
to Sep 2009
Commissioner,
Kolkata and
Appellate
Authorities,
(CESTAT, Kolkata)
Finance Act, 1994

(As amended
upto date)
Service Tax on
Cargo Handling
Services at
Duburi unit as
demanded by
Commissioner,
Bhubaneswar
69.64
April 2009
to
March, 2010
(CESTAT, Kolkata)
Finance Act, 1994

(As amended
upto date)
Service Tax on
Business Auxiliary
Services at
Durgapur unit as
demanded by
Excise, Bolpur
74.86
Oct 2009
to
March, 2010
Appellate
Authorities,
(CESTAT, Kolkata)
Orissa Sales
Tax Act, 1947
For Sales Tax and

Entry Tax at
Rourkela unit as
demanded by Orissa
Sales Tax Department
43.56
2002-03
Sales Tax
Tribunal, Cuttack
Orissa Municipal
Act,1950
Octroi on heavy
earthmoving equipment
like Dumpers, Dozers
etc. by Notified Area
Council, Rourkela
(Steel Township)
1,113
Orissa
High Court
x.
The company does not have any accumulated losses of the company at the end of the financial year and
has not incurred cash losses during the financial year covered by our audit and in the immediately preceding
financial year Accordingly (x) of the Order in not applicable.
xi.
The company has not defaulted in repayment of dues to a financial institution or bank.
xii.
The company has not granted any loans and advance on the basis of security by way of pledge of shares,
debentures and other securities. Accordingly, paragraph (xii) of the order is not applicable to the company.
xiii. The company is not a chit fund or a nidhi/mutual benefit fund/society. Accordingly, paragraph (xiii) of the
order is not applicable to the company.
xiv. The company is not dealing or trading in shares, securities, debentures and other investments.
xv. The company has not given any guarantee for loans taken by others from bank or financial institutions.
xvi. The company has not obtained any term loans hence the relevant paragraph is not applicable.
xvii. No funds raised on short-term basis have been used for long term investment and no long term funds have
been used to finance short term assets.
xviii. The company has not made any preferential allotment of shares to parties and companies covered in the
Register maintained under section 301 of the Act.
xix. The content of paragraph (xix) is not applicable to the company as the company has not issued any debentures
during the year.
35
ni>
(20) fUvle
lu JMo fuU =tihtl ttufU-rJJtfU tht rfUme hfUb fUtu mbw:trv; lnek fUe ni> y;YJ, Rm ylwAu= fUe tJ"tluk ttdq lnek
ni>
(21) nbuk
=e dge mqalt ytih vefUhttuk fuU ylwmth nbthu tuFt vheGt fuU =tihtl fkUvle vh y:Jt fkUvle tht fUtuRo "tuFt"\ze lne
=uFe dge y:Jt l ne mqra; fUe dge>
Jt;u htsu mt=
ml=e tuFtvtt
:tl & rCttRo,

r=ltkfU & 30 sql,
htt FzutJtt
mtSu=th
m=g;t f{ . 079628
2012
36
xx. The Company has not raised any money by public issues during the year. Hence, provisions of this paragraph
are not applicable.
xxi. According to the information and explanation given to us, no fraud on or by the company has been noticed
or reported during the course of our audit.
For RAJENDRA PRASAD

RAHUL KHANDELWAL
Partner
Place : Bhilai
Date : 30th June 2012
37
rl=uNfU fuU r;Ju=l fUt mktlUfU - III
r=.
31
btao,
1956
2012
fUtu mbtt JMo fuU rtY VUuhtu fiUv rldb rtrbxuz fuU tuFtyt vh fUvle yrtrlgb,
fUe ttht 619(4) fuU y;do; rlgktfU YJk Cth; fuU bnttuFt vheGfU fUe rxvrKgt
fUvle yrtrlgb, 1956 fuU y;do; rJrn; rJteg rJJhKe Ztat fuU ylwmth 31 btao, 2012 fUtu mbtt JMo
fuU rtY VUuhtu f{i v rldb rtrbxuz fuU rJteg rJJhrKgt fUtu ;igth fUhlt fUvle fuU cktl fUt =trgJ ni>
Cth;eg ml=e tuFtvtt mk:tl fuU J]rtfU rlfUtm tht rlttorh; tuFt vheGK ;:t rJJtm btlfU fuU ylwmth
J;kt tuFt vheGK fuU yttth vh fUvle yrtrlgb, 1956 fUe ttht 227 fuU y;do; Rl rJteg rJJhrKgt
vh htg yrCgU fUhlu fuU rtY fUvle yrtrlgb, 1956 fUe ttht 619(2) fuU ;n;T rlgktfU YJk Cth; fuU bnttuFt
vheGfU tht rlgwU JittrlfU tuFt vheGfU Wth=tge n> Rmu r=ltkfU 30 sql, 2012 fuU WlfuU tuFt vheGK
r;Ju=l fuU ylwmth WlfuU tht vqht rfUgt dgt>
biklu rlgktfU YJk Cth; fuU bnttuFt vheGfU fUe ytuh mu 31 btao, 2012 fUtu mbtt JMo fuU rtY VuUhtu f{Uiv
rldb rtrbxuz fUe rJteg rJJhrKgt fUt fUvle yrtrlgb, 1956 fUe ttht 619(3)(F) fuU y;do; vqhfU tuFt
vheGK rfUgt> Rl vqhfU tuFt vheGK fUtu JittrlfU tuFt vheGfUt fuU fUtgo-vtt fuU rclt J;kt v mu mkvtr=;
rfUgt dgt ;:t gn t:rbfU v mu JittrlfU tuFt vheGfUt ;:t fkUvle fuU fUboatrhgt mu vqA;tA YJk fwUA
tuFt yrCtuFt fUe sta-v\z;tt ;fU merb; :t> buhu tuFt vheGK fuU yttth vh buhe stlfUthe b fUtuRo Ce
yrCtg buhu gtl b lnek ytgt ni ;:t rsmvh y:Jt fUvle yrtrlgb, 1956 fUe ttht 619(4) fuU ;n;
JittrlfU tuFt vheGfU r;Ju=l fuU vrhrNx vh fUtuRo rxvKe W]; fUe st mfuU>
rlgktfU YJk Cth; fuU bnttuFt vheGfU YJk

fuU Jt;u WlfUe ytuh mu,
Ym.fuU. stgmJtt
JtrKrgfU tuFt vheGt fuU ttl rl=uNf
:tl & htae

r=ltkfU & 9 yd; , 2012
38
ANNEXURE - III TO DIRECTORS REPORT
COMMENTS OF THE COMPTROLLER AND AUDITOR GENERAL OF INDIA UNDER

SECTION 619(4) OF THE COMPANIES ACT, 1956 ON THE ACCOUNTS OF
FERRO SCRAP NIGAM LIMITED FOR THE YEAR ENDED 31ST MARCH 2012
The preparation of financial statements of Ferro Scrap Nigam Limited for the year ended
31 March 2012 in accordance with the financial reporting framework prescribed under the Companies
Act, 1956 is the responsibility of the management of the company. The statutory auditor appointed by
the Comptroller and Auditor General of India under Section 619(2) of the Companies Act, 1956 is
responsible for expressing opinion on these financial statements under section 227 of the Companies
Act, 1956 based on independent audit in accordance with the auditing and assurance standards
prescribed by their professional body the Institute of Chartered Accountants of India. This is stated to
have been done by them vide their Audit Report dated 30th June 2012.
I on behalf of the Comptroller and Auditor General of India have conducted a supplementary audit
under section 619(3)(b) of the Companies Act, 1956 of the financial statements of Ferro Scrap Nigam
Limited for the year ended 31 March 2012. This supplementary audit has been carried out independently
without access to the working papers of the statutory auditor and is limited primarily to inquiries of the
statutory auditor and company personnel and a selective examination of some of the accounting
records. On the basis of my audit nothing significant has come to my knowledge which would give
rise to any comment upon or supplement to Statutory Auditors Report under section 619(4) of the
Companies Act, 1956.
For and on the behalf of the

Comptroller and Auditor General of India
Place : Ranchi
S. K. Jaiswal
Date : 9 August, 2012
Principal Director of Commercial Audit
39

btao, 2012 fUt ;wtl-vt
31
gtiht
mtg J =ul=trhgt
ykN"trhgtuk fUe rlr"
ykN vkqse
ythrG; YJk yr"NuM
dih J;obtl =trgJ
yg =eDtoJr"fU =trgJ
=eDtoJr"fU tJ"tl
J;obtl =trgJ
yvtJr"fU tJ"tl
=ug gtvth
yg J;obtl =trgJ
yvtJr"fU tJ"tl
ytr;gt
dih J;obtl ytr;gt
:tge ytr;gt
bq;o ytr;gt
ybq;o ytr;gt
fUtgtolwd;T vqkse
rJfUtm fuU y;do; ybq;o ytr;gt
yt:rd; fUh ytr;gtp (Nw)
=eDtoJr"fU }UK YJk yrd{b
yg dih J;obtl ytr;gt
J;obtl ytr;gt
J;w mqragt
tg gtvth
lfU= ;:t cfU yr"NuM
tDw }UK YJk yrd{b
yg J;obtl ytr;gtp
attq JMo
htrN (` ttF bu)

d; JMo
31.03.2012
31.03.2011
2
3
200.00
13,631.63
200.00
13,540.63
4
5
254.81
2,359.17
237.62
1,906.92
6
7
8
9
2,683.26
2,215.18
1,547.64
483.23
(633.65)
2,725.78
1,244.69
744.43
gtud
23,374.92
19,966.42
10
10
10
10
11
12
13
5,577.49
5.78
211.12
67.25
309.64
681.64
374.14
5,435.27
5.19
323.31
61.25
126.35
434.50
312.39
14
15
16
17
18
529.89
1,982.37
9,829.08
184.71
3,621.81
574.49
1,489.54
8,356.30
238.59
2,609.24
gtud
23,374.92
19,966.42
vte
bnJvqKo tuFt ler;gt YJk Ft;tyt vh vrtgt

1 mu 49
W; mk=rCo; Ft;tytku vh vrtgt ;wtl vt fuU YfU yrCl Fkz fuU hv buk ni>
mb r;r: fuU nbthu r;Ju=l fuU ylwmth
Jt;u htsu mt=
ml=e tuFtvtt
htt FzutJtt
mtSu=th
m=g;t f{ . 079628
Jt;u YJk rl=uNfU bzt - VuUhtu f{iUv rldb rtrbxuz fUe ytuh mu
Y. ve. Nbto
fuU. bwhte"hl
fUkvle mraJ
fUtgovttfU rl=uNfU (tuFt)
:tl & rCttRo

r;r: & 30.06.2012
40
ce. ce rmkn
rl=uNf
Yxtule atfUtu
ck" rl=uNf

BALANCE SHEET AS AT 31 ST MARCH, 2012
Particulars
Note
` in Lakhs
Current Year
31.03.2012
Previous Year
31.03.2011
EQUITY AND LIABILITIES

Shareholders funds
Share capital
Reserves and surplus
2
3
200.00
13,631.63
200.00
13,540.63
Non-current liabilities
Other Long term liabilities
Long-term provisions
4
5
254.81
2,359.17
237.62
1,906.92
Current liabilities
Short-term borrowings
Trade payables
Other current liabilities
Short-term provisions
6
7
8
9
2,683.26
2,215.18
1,547.64
483.23
(633.65)
2,725.78
1,244.69
744.43
TOTAL
23,374.92
19,966.42
ASSETS
Non-current assets
Fixed assets
Tangible assets
Intangible assets
Capital work-in-progress
Intangible assets under development
Deferred tax assets (net)
Long-term loans and advances
Other non-current assets
10
10
10
10
11
12
13
5,577.49
5.78
211.12
67.25
309.64
681.64
374.14
5,435.27
5.19
323.31
61.25
126.35
434.50
312.39
Current assets
Inventories
Trade receivables
Cash and Bank Balance
Short-term loans and advances
Other current assets
14
15
16
17
18
529.89
1,982.37
9,829.08
184.71
3,621.81
574.49
1,489.54
8,356.30
238.59
2,609.24
TOTAL
23,374.92
19,966.42
Significant Accounting Policies & Notes on Accounts
1 to 49
Notes to accounts referred to above form an integral part of the Balance Sheet
As per our report of even date
For and on behalf of the Board of Directors of Ferro Scrap Nigam Limited
For RAJENDRA PRASAD
RAHUL KHANDELWAL
Partner
Place : Bhilai
Date : 30.06.2012
A. P. SHARMA K. MURALIDHARAN B. B. SINGH ANTONY CHACKO

Company Secretary Executive Director
Director
Managing Director
(Accounts)
41
31
btao,
2012

fUtu mbt; JMo fuU rtY ttC YJk ntrl rJJhK
attq JMo
gtiht
vte
attltuk mu htsJ
muJt Cth
19
DxtJuk-muJt fUh
attltuk mu Nw htsJ
20
yg ytg
fwUt htsJ
Fauo
gw; mtbrd{gtuk fUe ttd;
XufuU=thtuk fuU tht muJt fUe ttd;
fUboathe ylwttC Fao
rJt ttd;uk
yJbqgl
yg Fauo
fwUt Fauo
21
22
23
10
24
ymt"thK YJk Ftm b=tuk ;:t fUh fuU vqJo ttC

ymt"thK b=uk
25
ymt"thK b=uk YJk fUh fuU vqJo ttC

fUh vqJo ttC
stu\zuk-vqJtoJr"fU ytg/(Fao)
26
fUh Fao:
attq fUh
yt:rd; fUh
yJr" fuU rtY ttC (Dtxt)
31.03.2012
htrN (` ttF bu)

d; JMo
31.03.2011
18,075.79
17,740.33
18,075.79
1,612.96
17,740.33
1,661.89
16,462.83
16,078.44
986.02
768.43
17,448.85
16,846.87
2,440.04
5,218.80
6,549.74
90.10
1,078.40
1,563.62
2,703.30
4,806.59
6,142.80
17.94
1,154.58
1,865.21
16,940.70
16,690.42
508.15
156.45
305.82
(6.33)
202.33
162.78
202.33
0.57
162.78
15.23
202.90
178.01
248.71
(183.30)
157.71
(99.40)
137.49
119.70
r; mtgtkN Wvtsol (` buk)

(1) btirtfU
27
687.43
598.47
(2) ;lqfU] ;
27
687.43
598.47
bnJvqKo tuFt ler;gt YJk Ft;tyt vh vrtgt
1 mu 49
W; mk=rCo; Ft;tytuk vh vrtgt ttC YJk ntrl rJJhK fuU YfU yrCl Fkz fuU hv buk ni>
Jt;u htsu mt=
ml=e tuFtvtt
htt FzutJtt
mtSu=th
Y. ve. Nbto
fuU. bwhte"hl
ce. ce rmkn Yxtule atfUtu
fUkvle mraJ fUtgovttfU rl=uNfU (tuFt)
m=g;t f{ . 079628
rl=uNf
ck" rl=uNf
:tl & rCttRo
r;r: & 30.06.2012
42

STATEMENT OF PROFIT & LOSS FOR THE YEAR ENDED 31ST MARCH, 2012
Particulars
Note
` in Lakhs
Current Year
31.03.2012
Previous Year
31.03.2011
18,075.79
17,740.33
Less: Service Tax
18,075.79
1,612.96
17,740.33
1,661.89
Net Revenue From Operations
16,462.83
16,078.44
986.02
768.43
17,448.85
16,846.87
2,440.04
5,218.80
6,549.74
90.10
1,078.40
1,563.62
2,703.30
4,806.59
6,142.80
17.94
1,154.58
1,865.21
16,940.70
16,690.42
508.15
156.45
305.82
(6.33)
202.33
162.78
202.33
0.57
162.78
15.23
202.90
178.01
248.71
(183.30)
157.71
(99.40)
137.49
119.70
687.43
687.43
598.47
598.47
Revenue From Operations

Services Charges
19
Other income
20
Total Revenue
Expenses:
Cost of materials consumed
Cost of Service through contractors
Employee benefits expense
Finance costs
Depreciation
Other expenses
21
22
23
10
24
Total expenses
Profit before exceptional and extraordinary items and tax
Exceptional items
25
Profit before extraordinary items and tax

Profit before tax
Add: Prior Period Income/(Expense)
26
Tax expense:
Current tax
Deferred tax
Profit (Loss) for the period
Earnings per equity share: (in `)
(1) Basic
(2) Diluted
27
27
Significant Accounting Policies & Notes on Accounts
1 to 49
Notes to accounts referred to above form an integral part of the Statement of Profit & Loss
For RAJENDRA PRASAD

RAHUL KHANDELWAL
Partner
Place : Bhilai
Date : 30.06.2012

Director
Managing Director
(Accounts)
43

lfU=e Jtn rJJhKe JMo
2011-2012
fuU rtY
` ttF
2011-2012
gtiht
fU.
attl fUtgo-fUttvt mu lfU=e Jtn

ttC YJk ntrl fUe rJJhKe fuU ylwmth fUh ;:t ymt"thK
b=tuk fuU vqJo Nw ttC
stu\z/(fUxti;e)
yJbqgl ;:t vrhNtu"l Fauo
mtJr" sbt tr;gtuk mu gts ytg
fUtgoh; vqkse vrhJ;ol fuU vqJo attl lfU=e ttC
stu\z/(fUxti;e) :
yvtJr"fU W"th (r;Cq;) buk J]r/(fUbe)
=ug gtvth buk J]r/(fUbe)
yg J;obtl =trgJtuk buk J]r/(fUbe)
yvtJr"fU tJ"tltuk buk J]r/(fUbe)
J;w mqragtuk buk J]r/(fUbe)
tg gtvth buk J]r/(fUbe)
tDw ytJr"fU }UKtuk YJk yrd{btuk buk J]r/(fUbe)
yg J;obtl ytr;gtuk buk J]r/(fUbe)
attltuk mu Wvl ld=
gG fUh
vqJtoJr"fU mbtgtusltuk fuU vqJo lfU=e Jtn
stu\z :vqJtoJr"fU ytg
ymt"thK b=tuk fuU vqJo Nw lfU=e Jtn
DxtJuk : ymt"thK b=uk (Nw Fauo)
ymt"thK b=tuk fuU ct= attl dr;rJr"gtuk mu Nw lfU=e Jtn
stu\z/(fUxti;e) :
ymkart; J;w mqragtuk buk (J]r)/fUbe
yg dih J;obtl ytr;gtuk buk J]r
yg =eDofUtrtfU =trgJtuk buk J]r/(fUbe)
=eDofUtrtfU tJ"tltuk buk J]r/(fUbe)
3,316.91
(510.60)
302.95
(261.20)
44.60
(492.83)
53.88
(1,012.57)
(12.57)
(242.80)
17.19
452.25
rlJuN dr;rJr"gtuk mu Wvl ntulu Jttt lfU= Jtn

y;Jton
:tge ytr;gtuk fuU cxTxt-Ft;t mrn; rJf{Ug
t; gts
JrnJton
me zgq ytR ve Nw yk;hK :tge ytr;gtuk fUt yrCd{nK
vqksed; vrhgtusltuytuk fuU rtY J;w mqae buk J]r
(21.01)
167.28
21.83
367.73
625.66
782.11
(821.88)
(39.77)
157.71
(197.48)
15.23
(182.25)
6.33
(175.92)
535.83
359.91
862.52
14.61
528.92
1,132.35
49.36
1,181.71
600.60
151.56
543.53
752.16
(208.63)
40.00
6.49
rJteg dr;rJr"gtuk mu lfU= Jtn

lfU= YJk mb;wg lfU=e b Nw J]r (fU+F+d)
lfU= YJk mb;wg lfU=e (ythkrCfU)
lfU= YJk mb;wg lfU=e (ykr;b)
:tl & rCttRo

r;r: & 30.06.2012
214.07
(786.88)
(3.02)
(56.26)
(1,215.80)
328.51
995.73
250.53
(334.69)
(319.19)
rJteg dr;rJr"gtuk mu Wvl ntulu Jttt lfU= Jtn

y;Jton
JrnJton
=t ttCtkN
ttCtkN rJ;hK fUh
Jt;u htsu mt=

ml=e tuFtvtt
htt FzutJtt
mtSu=th
m=g;t f{ . 079628
1,441.14
2,178.35
248.71
1,929.64
0.57
1,930.21
(305.82)
1,624.39
1,154.58
(528.92)
13.18
849.34
rlJuN dr;rJr"gtuk fuU =tihtl Nw lfU= Jtn/(crnJton)

d.
229.06
737.21
156.45
1,838.46
ymt"thK b=tuk ;:t yg dih J;obtl ytr;gtuk YJk =trgJtuk

fuU mbtgtusl Wvhtk; attl dr;rJr"gtuk fuU =tihtl Nw
F.
2010-2011
508.15
1,078.40
(849.34)
buk
46.49
40.00
6.49
46.49
(46.49)
(46.49)
1,472.78
8,356.30
9,829.08
104.79
8,251.51
8,356.30
Y. ve. Nbto
fuU. bwhte"hl
fUkvle mraJ
44
ce. ce rmkn
rl=uNf
Yxtule atfUtu
ck" rl=uNf

CASH FLOW STATEMENT FOR THE YEAR 2011-12
Particulars
A.
2011-2012
Cash flow arising from Operating Activities

Net Profit before Tax and Exceptional items as per
Statement of Profit and Loss:
Add/(Deduct) :
Depreciation and Amortisation expenses
Interest Income from FDR
Operating cash profit before working capital changes
Add/(Deduct) :
Increase/(Decrease) in Short Term Borrowing (secured)
Increase/(Decrease) in Trade Payables
Increase/(Decrease) in Other Current Liabilities
Increase/(Decrease) in Short Term Provisions
(Increase)/Decrease in Inventories
(Increase)/Decrease in Trade Receivable
(Increase)/Decrease in Short Term Loans & Advances
(Increase)/Decrease in Other Current Assets
Cash generated from operations
Direct Taxes
Cash flow before prior period adjustments
Add : Prior Period Income
Net Cash Flow before Exceptional Items
Less: Exceptional Items (Net Expenses)
Net Cash flow from operating activities after Exceptional Items
Add/(Deduct) :
(Increase)/Decrease in Non Moving Inventories
(Increase)/Decrease in Other Non Current Assets
Increase/(Decrease) in Other Long term liabilities
Increase/(Decrease) in Long-term provisions
1,078.40
(849.34)
3,316.91
(510.60)
302.95
(261.20)
44.60
(492.83)
53.88
(1,012.57)
229.06
737.21
1,441.14
2,178.35
248.71
1,929.64
0.57
1,930.21
(305.82)
1,624.39
(12.57)
(242.80)
17.19
452.25
Cash flow arising from Investing Activities

Inflow:
Sale including write off of Fixed Assets
Interest received
Outflow:
Acquisition of fixed assets net of transfer from CWIP
Increase in Inventory for Capital Projects
156.45
1,154.58
(528.92)
(786.88)
(3.02)
(56.26)
(1,215.80)
328.51
995.73
250.53
(334.69)
214.07
(21.01)
167.28
21.83
367.73
1,838.46
862.52
14.61
528.92
1,132.35
49.36
1,181.71
600.60
151.56
(319.19)
Cash flow arising from Financing Activities

Inflow
Outflow:
Dividend Paid
Dividend Distribution tax
625.66
782.11
(821.88)
(39.77)
157.71
(197.48)
15.23
(182.25)
6.33
(175.92)
535.83
359.91
13.18
849.34
Net Cash inflow/(Outflow) in the course of Investing Activities

C.
2010-2011
508.15
Net Cash Inflow/(outflow) in the course of operating activities after

exceptional items and after adjustment of Other Non Current Assets & Liabilities
B.
` in lakhs
543.53
752.16
(208.63)
40.00
6.49
46.49
Net Cash from Financing Activities

Net increase in Cash and Cash Equivalents (A+B+C)
Cash & Cash Equivalents (Opening)
Cash & Cash Equivalents (Closing )
40.00
6.49
46.49
(46.49)
(46.49)
1,472.78
8,356.30
9,829.08
104.79
8,251.51
8,356.30

For RAJENDRA PRASAD
RAHUL KHANDELWAL
Partner
Place : Bhilai
Date
: 30.06.2012
A. P. SHARMA
Company Secretary
K. MURALIDHARAN
Executive Director
(Accounts)
45
B. B. SINGH
Director
ANTONY CHACKO
Managing Director
VuUhtu f{iUv rldb rtrbxuz

1.
bnJvqKo tuFt ler;gt &
1.1.
tuFt fUt yt"th

rJteg rJJhrKgtuk fUtu fUvle yr"rlgb, 1956 fUe "tht 211 (3me) ;:t Wmmu mkc tJ"tltuk fuU y;do;
mtbtg;& JefUtgo tuFt rmt;tuk, tuFt btlfUtuk fuU ylwmth tuFtytuk fUtu tu=Cq; yt"th vh Yur;ntrmfU ttd; mbtdb
fuU ;n;T attq mbw:tl fuU v buk ;igth rfUgt dgt ni>
1.2.
tfUtltuk fUt Wvgtud

rJteg rJJhrKgtu fUtu cltlu buk mtbtg;& JefUtgo tuFt rmt;tuk fuU mt: ylwv;t buk ttltuk ;:t WmfUtu
CtrJ; fUhlu Jttu ylwbtltuk fUe sh; ntu;e ni rsmfUt CtJ rJteg rJJhrKgtuk fUe r;r: vh ytr;gtuk fuU r;Jur=;
hfUbtuk ;:t =trgJtuk YJk r;Jur=; yJr" fuU =tihtl htsJtuk ytih ggtuk fuU r;Jur=; hfUbtuk vh v\z;t ni> Jt;rJfU
vrhKtbtuk ;:t tfUtltuk fuU bg buk rCl;tytuk fUtu yJr", rsmbuk vrhKtb tt;/fUtgtorJ; ntu;t ni, buk btlt st;t
ni>
1.3
:tge yr;gtu
:tge vrhmvr;gtuk mkra; yJGgK ;:t tm, gr= fUtuRo ntu, yNtur"; bqg gturs; fUh Ktte (btuzJix)/fuUe;
bqg gturs; fUh (mulJix) fUe Nw ttd; mu fUb vh fUr:; ni> yvlu Wvt=fU;t fUtu c\Ztlu fuU rtY gtl
buk hFu dY bwg bhb;/vqhe sta vh gg ttd; buk mbtrn; ni>
fUtgtolwd;T vqkse fUt bqgtkfUl ttd; vh ni ;:t rsmbuk vthdbl buk WvfUh ;:t :tge ytr;gtuk fUe ttd;,
stu rfU mqalt fUe r;r: ;fU WmfuU ytNrg; Wvgtud fuU rtY yc ;fU ;igth lne ni, mbtrn; ni>
cufUth/VUtt;q :tge ytr;gt Nw Ft;t bqg ;:t ylwbtrl; Nw Jmqtegtug bqg mu fUb vh bqgtkrfU; ni>
1.4
tm
:tge ytr;gtuk vh tm fUtu mkgkt/bNelhe fUe bwg bhb;/vqhe sta fuU vrhug buk vqksed; gg fUtu Atu\z
fUh mkckr"; vrhmvr;gtuk fuU yJrNx seJl fUtu gtl buk hFfUh rtFu dY gg vh =htuk vh ;:t fUvle yr"rlgb,
1956 fUe ylwmqae-14 buk JrKo; her; buk F\ze huFt vr; vh r=gt dgt ni ;:t snt ;fUlefUe v mu
bqgtkrfU; ylwbtrl; Wvgtude seJl fuU yt"th vh rl"torh; =h, simt rfU leau =Ntogt dgt ni, vh yJbqgl
Ctrh; ni &
dhb tid nizrtkd nu;w gw; mkgkt YJk bNelhe
& 20.00 r;N;
vkFu, Jt;tlwfqUtl, fqUth, hurV{Ushuxh ;:t fUtgtotg WvfUh& 13.91 r;N;

ybq;o ytr;gtuk fuU v buk Jdeof]U; mkdKfU mtpVTUxJugh & 16.21 r;N;
1.5
ytr;gtuk fUe GeK;t

GeK;t Gr; fUtu Jnleg hfUb fUe mebt mu c\ZtfUh WmfUe chtb=de hfUb ;fU r=gt dgt ni> GeK;t Gr; fUtu
JMo buk ttC YJk ntrl Ft;t mu Ctrh; rfUgt st;t ni rsmbuk fUtuRo mvr; GeK;t fuU v buk vnatle stY>
1.6
xtpfU mqragtu
ymkart; xtpfU mqragtuk fUtu Atu\zfUh xtpfU mqragtuk ttd; y:Jt ctsth bqg, stu Ce fUb ntu, vh bqgtkrfU;
ni> ttd; buk bqg, rJf{Ug fUh/bqg mbtrn; fUh, Ct\zt ;:t yvlu J;obtl :tl ;:t r:r; mu mqragtu ttlu
buk gJ; mCe yg ttd; mbtrn; ni rfU;w Wl J;wytuk vh ytcfUthe NwfU Jrso; ni snt fuUe; bqg
gturs; fUh (mulJix) mtF rlgb, 2004 fuU rlgb 3(1) fuU ylwmhK buk fuUe; bqg gturs; fUh (mulJix) mtF
tulu fuU rtY vtt ni> xtpfU mqae mtbrd{gtuk, rsmu ;el JMtuok mu yr"fU yJr" mu mkart; ln rfUgt dgt,
fUtu ymkart; mqragtuk fuU v buk btlt dgt>
46

1. SIGNIFICANT ACCOUNTING POLICIES
1.1.
BASIS OF ACCOUNTING
The financial statements are prepared as of a going concern under historical cost convention on accrual
basis of accounting in accordance with the generally accepted accounting principles, Accounting
Standards notified under Sec 211(3c) of the Companies Act, 1956 and the relevant provisions thereof.
1.2. USE OF ESTIMATES

The preparation of financial statements in conformity with generally accepted accounting principles require
estimates and assumptions to be made that affect the reported amounts of assets and the liabilities on the
date of the financial statements and the reported amounts of revenues and expenses during the reported
period. Differences between actual results and estimates are recognized in the period in which results are
known/materialized.
1.3.
FIXED ASSETS
Fixed Assets are stated at cost net of eligible modvat/cenvat less accumulated depreciation and impairments, if any. Cost includes the expenditure on major repairs/overhauling considered to have enhanced
their productivity.
Capital Work-in-Progress is valued at cost and includes equipment in transit and the cost of fixed assets
that are not yet ready for their intended use at the reporting date.
The Scraped/redundant fixed assets are valued at lower of the net book value and estimated net realizable
value.
1.4
DEPRECIATION
Depreciation on fixed assets has been provided on Straight-line method at the rates and in the manner
prescribed in schedule XIV to the Companies Act, 1956 except on expenditure capitalized in respect of
major repairs / overhauling of plant and machinery which is at the rate worked out taking into consideration
the residual lives of the respective assets and where depreciation is charged at rates determined on the
basis of technically assessed estimated useful life as shown hereunder.
1.5
Plant and Machinery used for hot slag handling
20.00%
Fans, Air-Conditioners, Cooler, Refrigerator and Office Equipment
13.91%
Computer Software classified as Intangible Asset
16.21%
IMPAIRMENT OF ASSETS
Impairment loss is provided to the extent of the carrying amount exceeds their recoverable amount. An
impairment loss is charged to the profit & loss account in the year in which an asset is identified as
impaired.
1.6
INVENTORIES
Inventories other than non-moving inventories are valued at cost or market value whichever is less. Cost
includes price, sales tax/VAT, freight and all other costs incurred in bringing the inventories to their present
location and condition but exclude excise duty on those goods where the company is eligible to take
cenvat credit in accordance with rule 3 (1) of the Cenvat Credit Rules2004. The inventory items, which
have not moved for more than three years, are considered as non-moving inventories.
47
ymkart; xtpfU mqragtuk fUt bqgtkfUl JMo 2001-2002 mu r; JMo ttd; fUt 10 r;N; fUb vh rl"torh;
ni>
f{iUv/yltJgfU CzthK b=uk ttd; y:Jt Nw Jmqtegtug bqg, stu Ce fUb ntu, vh bqgtkrfU; ni>
1.7
W"th ttd;
W"th ttd;, vrhbtK fUtu Atu\zfUh snt W"th ttd; ytr;gtuk fuU yr"d{nK, rlbtoK y:Jt ynofUthe ytr;gtuk fUe
Wvrt WmfuU ytNrg; Wvgtud fuU rtY vuN ntulu ;fU me"u W"th ttd; yJr" buk Fao fuU v buk btg ni,
rsmbuk Jn Fao yt, Wm ytr;gtuk fuU ttd; fuU Ctdv buk vqksef]U; ni>
1.8
fUboathe ylwttC
(fU) CrJg rJr" &
ytgfUh tr"fUhK mu btg;tt; gtm tht CrJg rlr" Ntrm; rfUgt st;t ni ;:t Rm rlr" buk ykN=tl
htsJ fuU rtY Ctrh; rfUgt st;t ni> rlJ]rt ylwttC fUboathe vukNl gtuslt, 1995 fuU tht mwhrG; ni>
(F) muJt Wvt=tl &
muJt Wvt=tl fuU vrhug buk =trgJ Cth;eg seJl cebt rldb fuU mbqn Wvt=tl seJl cebt gtuslt fuU y;do;
ytJrh; fUe st;e ni ;:t Rmu Rm Wug nu;w fUvle tht cltY dY ytd yxt gtm fuU tht Ntrm;
rfUgt st;t ni> gtuslt fuU rtY ykN=tl htsJ fUtu Ctrh; rfUgt st;t ni>
(d) vrhJth ylwttC gtuslt &
fUboathe vrhJth ylwttC gtuslt fuU y;do; rl&N; fUboathe/b];fU fUboatrhgtuk fuU fUtlqle Jtrhmtuk fUtu CrJg buk
rfUY stlu Jttu Cwd;tltuk mu mkckr"; tJ"tl fUtu JMo fuU yk; buk Jt;rJfU bqgtkfUl fuU yt"th vh cltgt st;t
ni YJk Jt;rJfU lVUt/lwfUmtl fuU mt: ttC YJk ntrl Ftlt fUtu Ctrh; rfUgt st;t ni>
(D) yg ylwttC &
tu=TCq; AwxTxe, =eDoJr"ofU muJt vwhfUth, muJtrlJ]rt vat;T rarfUmt ;:t rlvxtht ylwttCtuk fuU vrhug buk tJ"tl
fUtu JMo fuU yk; buk Jt;rJfU bqgtkfUl fuU yt"th vh cltgt st;t ni YJk Jt;rJfU lVUt/lwfUmtl fuU mt: ttC
YJk ntrl Ft;t fUtu Ctrh; rfUgt st;t ni>
1.9
vqJtoJr"fU mbtgtusl &

vqJo yJr" mu mkckr"; gufU btbtu buk yr"fU mu yr"fU =m nsth hvgu mu yr"fU ln fuU ytg/gg fUtu
mr; JMo fUt ytg/gg btlt st;t ni>
1.10
muJt Cth &

muJt Cth fkUvle tht mkckr"; Rvt; mkgkttuk fUtu mnb;/ylwr=; =htuk vh f{iUv fuU fUbK ;:t rJrJ" fUtgtuok
fuU rtY yrso; ytg fUt r;rlr"J fUh;t ni>
rJrJ" =ul=thtuk fUtu mkckr"; Rvt; mkgkttuk mu Jmqte nu;w mnb;/;trJ;/ylwbtrl; muJt Cth fUe =htuk fuU yt"th
vh =Ntogt st;t ni>
1.11
rJ=uNe bwt mkgJnth &

fUt-vqstuo fuU ytgt; ;:t vqksed; b=tuk fuU rtY yvurG; hfUb fUtu btttuk fuU ytgt; nu;w mtF-vt fuU btgb
mu =;tJustuk fUe ct;ae; fUe r;r: fUtu rJrlbg =h mu Cth;eg bwt buk vrhJr;o; fUh Cwd;tl rfUgt st;t ni>
1.12
WvfUh cebt &

WvfUh fUe f]Ur; ;:t cebt fUe Cthe ttd; fUe mkCtJlt fuU rtY rfUme Ce cebt ylwttC buk vrhKtb ln
fUtu =uF;u Y dhb rvx fuU =tghu buk fUtb fUhlu Jttt WvfUhtuk fUtu Atu\zfUh fkUvle fuU JtrbJ Jttu mkgkt
;:t bNelhe fUtu ck"l fUe ler; btl;u Y rfUme fUth fuU sturFb/Gr; fuU rJh cebt ln fUhtgt st;t
ni>
48
Non-moving inventories are valued at cost reduced by ten percent of cost every year from the year
2001-2002.
The scrapped/redundant stores items are valued at cost or net realizable value whichever is lower.
1.7
BORROWING COSTS
Borrowing costs are recognized as an expense in the period in which they are incurred, except to the extent
where borrowing costs that are directly attributable to the acquisition, construction, or production of an
qualifying asset till put into its intended use is capitalized as part of the cost of that asset.
1.8
EMPLOYEE BENEFITS
a) Provident Fund:
Provident Fund is administered by a Trust recognized by Income Tax Authorities and contribution to
this Fund is charged to revenue. Pensioners Benefits are secured through Employees Pension Scheme
1995.
b) Service Gratuity:
Liability on account of service gratuity is covered under Group Gratuity Life Assurance Scheme of Life
Insurance Corporation of India and is administered through a separate irrevocable trust created by the
Company for this purpose. Contribution to the scheme is charged to revenue.
c) Family Benefit Scheme:
The provision towards future payments to the disabled employee/ legal heirs of deceased employees
under the Employees Family Benefit Scheme is made based on the actuarial valuation as at the end of
the year and charged to the profit and loss account along with actuarial gains/losses.
d) Other benefits:
The provision towards accrued leave, long term service award, post retirement medical and settlement
benefits, are made based on the actuarial valuation as at the end of the year and charged to the profit
and loss account along with actuarial gains/losses.
1.9
PRIOR PERIOD ADJUSTMENTS

Income/expenditure relating to prior period not exceeding rupees ten thousand in each case is treated as
income/expenditure of the current year.
1.10 SERVICE CHARGES

Service charges represent the income earned for processing of scrap and miscellaneous jobs done by the
Company at the rates agreed with / offered to the respective Steel Plants.
Sundry Debtors are shown based on rates of service charges agreed with / offered to / expected to realize
from the respective Steel Plants.
1.11 FOREIGN CURRENCY TRANSACTION
The amount required for import of spare parts and capital items are paid in Indian currency converted at the
exchange rate on the date of negotiation of documents through Letter of Credit for import of goods.
1.12 EQUIPMENT INSURANCE
Keeping in view the nature of equipment and heavy cost of insurance not likely to result in any insurance
benefit, the plant and machinery owned by the Company is not insured against any kind of risk / loss as a
matter of management policy except equipments working near hot pit area.
49
1.13
ytgfUh&
J;obtl ytgfUh =trgJ fuU rtY ytgfUh yr"rlgb, 1961 fuU y;do; fUh gtug ytg vh ylwtug fUh Aqxtuk,
fUxtir;gtuk ;:t ltbksqrhgtuk fUtu gtl buk hFfUh tJ"tl rfUgt dgt ni> Rm =trgJ fUtu gtug fUh =h y:Jt
ytgfUh yr"rlgb, 1961 fuU 115 su ce "tht;do; gql;b JifUrvfU fUh =h, simt Ce btbtt ntu, vh mkdKlt
fUe st;e ni>
yr;rh; ytg fUh y:Jt rldrb; ttCtkN fUh JMo, rsmbuk fUvle tht fUr:; ttCtkN DturM;, rJ;rh; y:Jt
Cwd;tl ntu;e ni, fuU rtY gtug =htuk fuU yt"th vh =e st;e ni>
1.14
yt:rd; fUh
yt:rd; fUh ytr; y:Jt =trgJ fuU m]sl nu;w rJteg rJJhKe fuU ylwmth ytgfUh fuU rtY fUe dge ttC
fUe mkdKlt ;:t Ft;t ttC fuU bg mbg fuU yk;h fuU fUthK yt:rd; fUh =trgJ fuU rtY Ce tJ"tl
cltge stYde> Rm =trgJ fUtu fuUJt bnmqm rfUgt dgt rfU gr= gnt gwr;mkd; rlra;;t ni ;tu yt:rd;
fUh ytr;gtuk/=trgJ fUt m]sl ntudt ;:t gufU ;wtl-vt fUe r;r: vh vwlrJottufUl rfUgt stYdt> Rm =trgJ
fUe mkdKlt gtug fUh =h y:Jt ytgfUh yr"rlgb, 1961 fuU 115 su.ce. "tht;do; gql;b JifUrvfU =h,
simt Ce btbtt ntu, vh fUe st;e ni> fUttbtvl rCl;t mu yt:rd; fUh ytr;gtu Wm mebt ;fU btlt dgt
ni snt Jt;rJfU rlra;;t ntu rfU ytr;gtu CrJg buk Wdtne fUe st mfuU>
1.15
Fkz r;Ju=l &

ct ttu; ;:t sturFbtuk fUe f]Ur; YJk r;VUt ytih yt;rhfU mk:tl J ck"l mkhalt vh yt"trh; Fkztuk
fUe vnatl fUhlt>
vhvh mnb; bqg fuU yt"th vh y;o-Fkz htsJ fuU rtY tuFtkfUl fUhlt>
Fz htsJ, Fz vrhKtbtuk, Fz ytr;gtuk ;:t Fz =trgJtuk buk gufU Fztuk mu vnatlu stlu
hfUbtuk, simt rfU Jt;rJfU yt"th vh Ce hfUb rl"torh; fUe dge ni, Ntrbt ni> gg, stu rfU
mu me"u mkckr"; ln ni, fUtu yrl"torh; rldrb; ttd; fuU v buk r=Ftgt st;t ni> ytr;gtuk
rsmu rfU Fkz fuU bg rl"torh; ln rfUgt st mfU;t ni, fUtu f{UbN& yrl"torh; rldrb; ytr;gtu
fuU v buk =Ntogt st;t ni>
1.16
gtug mkckr";
gtvth Fz
;:t =trgJtuk,
;:t =trgJtuk
tJ"tl, mkCtg =trgJ ;:t mkCtg ytr;gtu &

mkCtg =trgJtuk fUtu rxvrKgtuk fuU btgb mu c;tge st;e ni, rJteg rJJhrKgtuk buk mkCtg ytr;gtu btg;t y:Jt
Fwttmt ln fUh hnt ni> tJ"tl fuU btg;t ni rfU gr= d; vrhKtb fuU v buk fUvle ctg;t fUh;e ni
;:t gn mkCtJlt ni rfU ctg;t fUtu =qh fUhlu nu;w ytr:ofU ylwttCtuk fUtu bq;o v =ulu mkmt"ltuk fUt ctrnJton
fUhlt yvurG; ntudt, rsmfuU vrhug buk ctg;t fUe hfUb fuU rtY vfuU tfUtl fUtu ;igth rfUgt st mfuU>
50
1.13 INCOME TAX

Provision for current income tax liability is made on Taxable Income under Income Tax Act, 1961 after
considering permissible tax exemptions, deductions and disallowances. This liability is calculated at the
applicable tax rate or minimum alternate tax rate u/s 115JB of The Income Tax Act, 1961 as the case may
be.
Additional income tax or corporate dividend tax is provided on the basis of rates applicable for the year in
which the said dividend is declared, distributed or paid by the company.
1.14 DEFERRED TAX
Provision is also made for deferred tax liability arising due to timing differences between profits computed
for Income tax and the book profits as per the financial statement, for creation of a deferred tax asset or a
liability. This liability is recognized only if there is a reasonable certainty that the deferred tax assets /
liability will be created and are reviewed at each balance sheet date. This liability is calculated at the
applicable tax rate or minimum alternate tax rate u/s 115JB of the Income Tax Act, 1961 as the case may
be. Deferred tax assets arising from timing differences are recognized to the extent there is reasonable
certainty that the assets can be realized in future.
1.15 SEGMENT REPORTING
To identify segments based on the dominant source and nature of risks and returns and the internal
organization and management structure.
To account for inter-segment revenue on the basis of mutually agreed price.
Segment Revenue, Segment Results, Segment Assets and Segment Liabilities include the respective
amounts identifiable to each of the segments as also amounts allocated on a reasonable basis. The
expenses, which are not directly relatable to the business segment, are shown as unallocated corporate
cost. Assets and liabilities that cannot be allocated between the segments are shown as unallocated
corporate assets and liabilities respectively.
1.16 PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS
Contingent liabilities are disclosed by way of notes; contingent assets are not recognized or disclosed in
the financial statements. A provision is recognized if the company has a present obligation as a result of
past event(s) and it is probable that an outflow of resources embodying economic benefits will be required
to settle the obligation(s), in respect of which reliable estimate can be made for the amount of obligation.
51
Ft;tytuk vh vte
vte 2 : ykN vqse
` ttF
31 btao, 2012 fUe
gtiht
mkgt
r:r;
hfUb
tr"f]U;
gufU ` 1,000/- fUt mtgtkN
20,000
sthe, mbr:o; ;:t =t

gufU ` 1,000/- fUt mtgtkN
gtud
31 btao, 2011 fUe
buk
r:r;
mkgt
hfUb
200.00
20,000
200.00
20,000
200.00
20,000
200.00
20,000
200.00
20,000
200.00
fUkvle mtJosrlfU Gut fUt YfU Wvf{Ub ;:t vqKo;gt Yb Ym xe me rt0 fuU JtrbJ Jtte ni >
fUkvle lu ykNtuk fUt YfU ne Jdo ` 1000/- fuU YfU mb;wg bqg fuU mtgtkN fuU v buk fUhlu fuU rtY Cust ni > mtgtkNtuk fUt gufU
"thfU r; ykN YfU b; fUt nfU=th ni >
fUkvle Cth;eg vgt buk ttCtkN fUe DtuMKt ;:t Cwd;tl fUh;e ni> ttCtkN fUe bttt mCe mtJosrlfU Gut fuU Wvf{Ubtuk fuU rtY ttdq
ttufU Wb rJCtd fuU r=Nt-rl=uoNtuk vh yt"trh; ni> rl=uNfU bzt tht ;trJ; ttCtkN ytdtbe JtrMofU ytb ciXfU buk ykN"trhgtuk
fuU ylwbtu=l fuU y"el ni >
31 btao, 2012 fUtu mtbt; JMo fuU =tihtl mtgtkN"thfUtuk fUtu rJ;hK fuU
` 200/- :e > 31 btao, 2012 fUtu mtbt; JMo fuU rtY ttCtkN buk ykr;b ttCtkN
rJrlgtud ` 48,48,900/- fUe htrN buk ` 6,48,900/- fUt rldrb; ttCtkN fUh
v buk btg;tt; r; ykN ttCtkN fUe hfUb

fUt r; ykN ` 200/- Ce Ntrbt ni > fwUt ttCtkN
Ntrbt ni>
cfUtgt ykNtuk fUe mkgt fUt mbt"tl
` ttF
31 btao, 2012 fUe
gtiht
JMo fuU ythkC buk cfUtgt ykN
JMo fuU =tihtl sthe ykN
JMo fuU =tihtl Jtvm rtY dY ykN
fUtuRo yg dr;rJr" (f]Uvgt rlr=ox fUhuk)
JMo fUe mbtr; vh cfUtgt ykN
mtgtkN
31 btao, 2011 fUe
mkgt
r:r;
hfUb
200.00
200.00
20,000
20,000
200.00
200.00
31 btao,
2012
31 btao,
2011
fUe
fUe
20,000
20,000
mkgt
r:r;
hfUb
20,000
20,000
mkck" fUe
f]Ur;
rlgkte fkUvle tht "trh; ykNtu fUt gtiht

gtiht
Yb Ym xe me rtrbxuz
rlgkte fkUvle
52
buk
NOTES ON ACCOUNTS
Note 2 : SHARE CAPITAL
` in Lakhs
Particulars
As at 31 March, 2012
Number
Amount
Number
Amount
Authorised
Equity Shares of ` 1,000 each
20,000
200.00
20,000
200.00
Issued, Subscribed & Paid Up

Equity Shares of ` 1,000 each
20,000
200.00
20,000
200.00
20,000
200.00
20,000
200.00
Total
The company is a public sector undertaking and a wholly owned subsidiary of MSTC Ltd.
The company has only one class of shares referred to as equity shares having a par value of `.1000/-. Each
holder of equity shares is entitled to one vote per share.
The company declares and pays dividend in Indian Rupees. The quantum of dividend is based on DPE guideline
as applicable to all CPSU. The dividend proposed by the Board of Directors is subject to the approval of the
shareholders in the ensuing Annual General Meeting.
During the year ended 31st March, 2012,the amount of per share dividend recognised as distributions to
equity shareholders was ` 200/-.The dividend for the year ended March31, 2012 includes ` 200/- per share of
final dividend. Total dividend appropriation amounted to ` 46,48,900/- which includes corporate dividend tax of
` 6,48,900/-.
Reconciliation of the number of Shares Outstanding
` in Lakhs
Equity Shares
Number
Amount
Number
Amount
Particulars
Shares outstanding at the beginning of the year

Shares Issued during the year
Shares bought back during the year
Any other movement (please specify)
Shares outstanding at the end of the year
20,000
20,000
200.00
200.00
20,000
20,000
Nature of
Relationship
As at
31 March
2012
As at
31 March
2011
Holding Co
20,000
20,000
Details of Shares Held by Holding Company

Particulars
MSTC Limited
53
200.00
200.00
Ft;tytuk vh vte
vte
3:
` ttF
attq JMo
buk
d; JMo
31.03. 2012
31.03.2011
37.36
37.36
37.36
37.36
13,503.27
137.49
40.00
6.49
13,430.06
119.70
40.00
6.49
13,594.27
13,503.27
13,631.63
13,540.63
ythrG; YJk yr"NuM

gtiht
fU. vqkse ythrG;

ythkrCfU NuM
stu\z& attq JMo yk;hK
DxtJuk& attq JMo buk yvrtrF;
yk; NuM
F. yr"NuM
ythkrCfU NuM
stu\z& attq JMo fuU rtY Nw ttC/(Nw ntrl)
DxtJu& ;trJfU ttCtkN
DxtJu& ttCtkN rJ;hK fUh
yk; NuM
gtud
vte
` ttF
& yg =eDofUtrtfU =trgJ

attq JMo
buk
d; JMo
31.03. 2012
31.03.2011
254.50
0.31
237.31
0.31
254.81
237.62
gtiht
fUboathe mu mkckr"; =trgJ
fUboathe vrhJth ylwttC gtuslt fuU ;n;T sbtYk
fUboathe mu mkckr"; yg =trgJ
gtud
vte
& =eDofUtrtfU
tJ"tl
` ttF
buk
attq JMo
d; JMo
31.03. 2012
31.03.2011
35.04
1,234.35
605.27
4.25
266.71
34.43
1,107.36
475.16
4.10
285.87
213.55
2,359.17
1,906.92
gtiht
fUboathe ylwttCtuk fuU rtY tJ"tl
muJtrlJ]rt (yrlr"fU)
yJfUtN lfU=efUhK (yrlr"fU)
muJtrlJ]rt vat;T rarfUmt ylwttC
=eDo muJt vwhfUth (yrlr"fU)
fUboathe vrhJth ylwttC gtuslt (yrlr"fU)
yg
J]r =tJtytuk fuU rJh rJf{uU;t fUtu =ug =tJt
gtud
54
NOTES ON ACCOUNTS
` in Lakhs
Note - 3 : RESERVES & SURPLUS

Particulars
a.
b.
Current Year
31.03. 2012
Previous Year
31.03.2011
Capital Reserves
Opening Balance
Add: Current year transfer
Less: Written back in current year
37.36
37.36
Closing Balance
37.36
37.36
Surplus
Opening balance
Add: Net Profit/(Net Loss) For the current year
Less: Proposed Dividends
Less: Dividend Distribution Tax
13,503.27
137.49
40.00
6.49
13,430.06
119.70
40.00
6.49
Closing Balance
13,594.27
13,503.27
Total
13,631.63
13,540.63
Note - 4 : OTHER LONG TERM LIABILITIES
` in Lakhs
Particulars
Current Year
31.03. 2012
Previous Year
31.03.2011
Employee related liabilities

Deposits under EFBS Scheme
Other Employee Related Liabilities
254.50
0.31
237.31
0.31
Total
254.81
237.62
Note - 5 : LONG TERM PROVISIONS
` in Lakhs
Particulars
Current Year
31.03. 2012
Previous Year
31.03.2011
35.04
1,234.35
605.27
4.25
266.71
34.43
1,107.36
475.16
4.10
285.87
213.55
2,359.17
1,906.92
Provision for employee benefits

Superannuation (unfunded)
Leave Encashment (unfunded)
Post Retirement Medical Benefit (unfunded)
Long Service Award (unfunded)
Employee Family Benefit Scheme (unfunded)
Others
Claim payable to vendor against escalation claim
Total
55
Ft;tytuk vh vte
vte
& yvtJr"fU
gtiht
W"th
` ttF
attq JMo
buk
d; JMo
31.03. 2012
31.03.2011
1,207.83
(633.65)
1,475.43
2,683.26
(633.65)
r;Cq;
fUtgoh;T vkqse }UK
cikfUtuk mu
Rrzgl cikfU, rCttRo fuU mt: ytunhz[tx mebt
yt"{t cikfU, rCttRo fuU mt: ytunhz[tVTUx mebt
(W; }UKtuk fUtu mkckr"; cikfUhtuk fuU vtm hFu dY fkUvle fuU mtJr"fU
sbtytuk fUtu c"fU hFfUh r;Cqr;; rfUgt dgt ni> sbt fUe
vrhvJ;t yJr" ;wtl vt rlr" fUtu YfU JMo mu fUb ni>
gtud
vte
& =ug gtvth

gtiht
` ttF
attq JMo
d; JMo
31.03. 2012
31.03.2011
10.06
2,205.12
4.34
2,721.44
2,215.18
2,725.78
Yb Ym Yb Ro fuU fUthK
yg fuU fUthK
gtud
vte
buk
& yg J;obtl ytr;gtu
` ttF
attq JMo
buk
d; JMo
31.03. 2012
31.03.2011
388.31
322.90
823.35
13.08
298.26
673.26
244.09
29.08
1,547.64
1,244.69
gtiht
yg =ug
fUboathe mu mkckr"; =trgJ
Ji"trlfU t;g
yg =trgJ
fUboathe vrhJth ylwttC gtuslt
gtud
56
NOTES ON ACCOUNTS
Note 6 : SHORT TERM BORROWINGS
` in Lakhs
Particulars
Current Year
Previous Year
31.03. 2012
31.03.2011
1,207.83
1,475.43
(633.65)
2,683.26
(633.65)
Secured
Working Capital Loan
From banks
Overdraft limit with Indian Bank, Bhilai
Overdraft limit with Andhra Bank, Bhilai
(The above loans are secured by pledge on fixed deposits of the
company held with respective bankers. The maturity period of
deposit is less than one year as on the balance sheet date)
Total
Note 7 : TRADE PAYABLES
` in Lakhs
Particulars
Current Year
31.03. 2012
Previous Year
31.03.2011
10.06
2,205.12
4.34
2,721.44
2,215.18
2,725.78
Due to MSME's
Due to Others
Total
Note 8 : OTHER CURRENT LIABILITIES
` in Lakhs
Particulars
Current Year
31.03. 2012
Previous Year
31.03.2011
388.31
322.90
823.35
13.08
298.26
673.26
244.09
29.08
1,547.64
1,244.69
Other payables
Employee Related Liabilities
Statutory Dues
Other Liabilities
Employee Family Benefit Scheme
Total
57
Ft;tytuk vh vte
vte 9 & yvtJr"fU tJ"tl
` ttF
attq JMo
d; JMo
31.03. 2012
31.03.2011
199.27
56.10
470.17
54.58
44.23
28.15
0.30
71.04
1.71
44.90
18.24
0.33
68.87
2.28
40.00
6.49
35.94
40.00
6.49
38.57
483.23
744.43
gtiht
(fU) fUboathe ylwttCtuk fuU rtY tJ"tl
Ju;l vwlheGK fuU rtY
YythseYm fuU rtY
muJtrlJ]rt vat;T ylwttC gtuslt fuU rtY
yJfUtN lfU=efUhK (yrlr"fU)
muJtrlJ]rt vat;T rarfUmt ylwttC (yrlr"fU)
=eDo muJt vwhfUth (yrlr"fU)
fUboathe vrhJth ylwttC gtuslt (yrlr"fU)
muJt rlJ]rt (yrlr"fU)
(F) yg
;trJ; ttCtkN
ttCtkN rJ;hK fUh
yg
gtud
vte
10
` ttF
& :tge ytr;gt

mfUt Fkz
1.4.2011
:tge ytr;gt
yJbqgl
vrhJ"olu
fUe
bq;o ytr;gt
CJl
mkgkt YJk WvfUh
VUleoah YJk sw\zlth
Jtnl
fUtgtotg WvfUhK
gtud (i)
d; JMo (i)
bq;o ytr;gt (vxTxt y;do;)
Cqrb
gtud (ii)
d; JMo (ii)
gtud fU = (i+ii)
d; JMo (i+ii)
ybq;o ytr;gt
mkdKfU mtVUxJugh
gtud (F)
d; JMo (F)
fUtgtolwd; vqkse
rlvxtl fu U Rk ; sth bu :tge ytr;gt
gtuud (d)
d; JMo
rJfUtm fuU y;do; ybq;o
ytr;gt (D)
d; JMo
gtuud (fU+F+d+D)
d; JMo
buk
buk
Nw mkag
fUxtir;gt/
mbtgtusl
31.3.2012
1.4.2011
fUxtir;gt/
mbtgtusl
31.3.2012
31.3.2011
fUe
JMo fuU
rtY
31.3.2012
fUe
fUe
;fU
fUe
(10.24)
414.40
19,227.67
71.18
347.22
229.78
123.20
13,046.40
52.29
247.24
163.51
11.22
1,029.44
2.18
22.32
11.84
(5.70)
9.58
0.06
0.40
128.72
14,085.42
54.53
269.56
175.75
285.68
5,142.25
16.65
77.66
54.03
250.91
5,025.89
14.76
84.32
56.19
374.11
18,072.29
67.05
331.56
219.70
50.53
1,155.38
4.13
15.66
10.08
19,064.71
1,235.78
(10.24)
20,290.25
13,632.64
1,077.00
4.34
14,713.98
5,576.27
5,432.07
18,545.01
767.13
(245.57)
19,066.57
12,710.27
1,153.32
(230.95)
13,632.64
5,433.93
5,834.74
1.35
4.13
4.13
2.78
0.13
2.91
1.22
4.13
4.13
2.78
0.13
2.91
1.22
1.35
4.13
4.13
2.66
0.13
2.79
1.34
1.47
19,068.84
1,235.78
(10.24)
20,294.38
13,635.42
1,077.13
4.34
14,716.89
5,577.49
5,433.42
18,549.14
767.13
(245.57)
19,070.70
12,712.93
1,153.45
(230.95)
13,635.43
5,435.27
5,836.21
7.05
11.38
11.38
4.33
1.27
5.60
5.78
11.38
11.38
4.33
1.27
5.60
5.78
7.05
3.30
6.22
9.52
3.20
1.13
4.33
5.19
0.10
211.36
111.95
(103.42)
(8.77)
107.94
103.18
107.94
103.18
211.36
111.95
323.31
(112.19)
211.12
211.12
323.31
551.14
76.19
(304.02)
323.31
323.31
551.14
61.25
6.00
67.25
67.25
61.25
61.25
61.25
61.25
19,464.78
1,241.78
(122.43)
20,584.13
13,639.75
1,078.40
4.34
14,722.49
5,861.64
5,825.03
19,103.58
910.79
(549.59)
19,464.78
12,716.13
1,154.58
(230.95)
13,639.76
5,825.02
6,387.45
htWhfuUtt, clovwh, rCttRo, ctufUthtu, rJstd, =wdtovwh, ztutJe, zwcwhe ;:t nrhth b Ju CqFkz, rslvh fkUvle fUt mkgkt YJk CJl ni, l ;tu vqKo JtrbJ b ni ytih l ne vxTxt"];
ni> fUkvle lu muJt ylwck"t fuU Ctd fuU v b Cq-Jtrbgt mu rl&NwfU Wvgtud fUhlu fUt yr"fUth t; fUh rtgt ni> scrfU, fUkvle lu mut, ce.Ym.ve. mu r=. 29 r=mch,
1988 fuU CtJ mu 33 JMtuo fuU NtJ; vxTxu vh Cqrb fUtu t; rfUgt ni, rsmvh vksef]U; fUtgtotg CJl fUt rlbtoK rfUgt dgt ni rsmfUt Wvgtud rfUgt st hnt ni >
58
NOTES ON ACCOUNTS
Note 9: SHORT TERM PROVISIONS
` in Lakhs
Particulars
Current Year
31.03. 2012
Previous Year
31.03.2011
199.27
56.10
470.17
54.58
44.23
28.15
0.30
71.04
1.71
44.90
18.24
0.33
68.87
2.28
40.00
6.49
35.94
40.00
6.49
38.57
483.23
744.43
(a) Provision for employee benefits

Towards Wage Revision
Towards ARGS
Towards Post Retirement Benefit Scheme
Leave Encashment (unfunded)
Post Retirement Medical Benefit (unfunded)
Long Service Award (unfunded)
Employee Family Benefit Scheme (unfunded)
Superannuation (unfunded)
(b) Others
Proposed Dividend
Dividend Distribution Tax
Others
Total
` in Lakhs
Note 10 : FIXED ASSETS

GROSS BLOCK
FIXED ASSETS
As at
1.4.2011
Tangible Assets
Buildings
Plant and Equipment
Furniture and Fixtures
Vehicles
Office equipment
DEPRECIATION
Additions Deductions/
Adjustment
NET BLOCK
As at
31.3.2012
As at
1.4.2011
For The
Year
Deductions/
Adjustment
Up to
31.3.2012
As at
31.3.2012
As at
31.3.2011
(10.24)
414.40
19,227.67
71.18
347.22
229.78
123.20
13,046.40
52.29
247.24
163.51
11.22
1,029.44
2.18
22.32
11.84
(5.70)
9.58
0.06
0.40
128.72
14,085.42
54.53
269.56
175.75
285.68
5,142.25
16.65
77.66
54.03
250.91
5,025.89
14.76
84.32
56.19
374.11
18,072.29
67.05
331.56
219.70
50.53
1,155.38
4.13
15.66
10.08
Total (i)
19,064.71
1,235.78
(10.24)
20,290.25
13,632.64
1,077.00
4.34
14,713.98
5,576.27
5,432.07
Previous Year (i)
18,545.01
767.13
(245.57)
19,066.57
12,710.27
1,153.32
(230.95)
13,632.64
5,433.93
5,834.74
Tangible Assets (Under Lease)

Land
4.13
4.13
2.78
0.13
2.91
1.22
1.35
Total (ii)
4.13
4.13
2.78
0.13
2.91
1.22
1.35
Previous Year (ii)
4.13
4.13
2.66
0.13
2.79
1.34
1.47
Total a= (i+ii)
19,068.84
1,235.78
(10.24)
20,294.38
13,635.42
1,077.13
4.34
14,716.89
5,577.49
5,433.42
Previous Year (i+ii)
18,549.14
767.13
(245.57)
19,070.70
12,712.93
1,153.45
(230.95)
13,635.43
5,435.27
5,836.21
7.05
Intangible Assets
Computer software
11.38
11.38
4.33
1.27
5.60
5.78
Total (b)
11.38
11.38
4.33
1.27
5.60
5.78
7.05
Previous Year (b)
3.30
6.22
9.52
3.20
1.13
4.33
5.19
0.10
Capital Work In Progress

Fixed Assets Awaiting Disposal
211.36
111.95
(103.42)
(8.77)
107.94
103.18
107.94
103.18
211.36
111.95
Total (c)
323.31
(112.19)
211.12
211.12
323.31
Previous Year
551.14
76.19
(304.02)
323.31
323.31
551.14
61.25
6.00
67.25
67.25
61.25
61.25
61.25
61.25
Intangible assets under

Development (d)
Previous Year
Total (a+b+c+d)
19,464.78
1,241.78
(122.43)
20,584.13
13,639.75
1,078.40
4.34
14,722.49
5,861.64
5,825.03
Previous Year
19,103.58
910.79
(549.59)
19,464.78
12,716.13
1,154.58
(230.95)
13,639.76
5,825.02
6,387.45
The land on which the plant and building of the company are situated at Rourkela, Burnpur, Bhilai, Bokaro, Vizag, Durgapur, Dolvi, Duburi and Haridwar are
neither freehold nor leasehold. The company has acquired right of free use from the land holders as a part of service agreement. The company has however,
acquired leasehold land from SAIL-B.S.P. ,on perpetual lease of 33 years w.e.f. 29th December 1988 on which the Registered OfficeBuilding has been
constructed which is being over the lease period.
59
Ft;tytuk vh vte
vte
11
& yt:rd; fUh

gtiht
` ttF
attq JMo
d; JMo
31.03. 2012
31.03.2011
142.96
194.14
2.02
104.70
18.81
53.68
273.39
452.60
2.16
76.70
3.69
237.94
320.49
309.64
126.35
yt:rd; fUh =trgJ

yt:rd; fUh ytr;gt
mkr=" yrd{btuk fuU rtY tJ"tl
mkr=" =tJtytuk fuU rtY tJ"tl
mkr=" }UKtuk fuU rtY tJ"tl
J]r =tJt fuU rJ rJf{uU;t fUtu =ug =tJt fuU rtY tJ"tl
yJfUtN lfU=efUhK fuU rtY tJ"tl
gtud
vte
12
& =eDtoJr"fU }UK YJk yrd{b
` ttF
attq JMo
d; JMo
31.03.2011
4.16
64.02
45.36
603.42
10.04
379.10
10.04
681.64
434.50
vqkse yrd{b
ymwhrG;, Wvgw; btlt dgt
vqkse vrhgtusltytuk fuU rJ yrd{b
mwhrG; sbtY
NtmfUeg rJCtdtuk ;:t yg vGtuk fuU mt: mwhGt sbt
yrd{b fUh
ytgfUh YJk ttu; vh fUh fUxti;e (Nw tJ"tl)
;x: ylwttC fUh fuU rJ cfUtgt Jtvme
gtud
13
& yg dih J;obtl ytr;gt
` ttF
vqkse vrhgtusltytuk fuU rtY J;w-mqae

ymkart; J;w-mqae fUt Ckzth
(3JMtuk mu yr"fU yJr" fuU rtY "trh;)
DxtJuk& ymkart; J;w-mqragtuk fuU bqg buk
tm fuU rtY tJ"tl
Jmqte gtug =tJt ;:t yg yrd{b
buk
d; JMo
attq JMo
gtiht
buk
31.03. 2012
gtiht
vte
buk
31.03. 2012
31.03.2011
200.92
151.56
283.66
111.60
263.02
172.06
1.16
374.14
gtud
60
103.53
159.49
1.34
312.39
NOTES ON ACCOUNTS
Note 11 : DEFERRED TAXES
` in Lakhs
Particulars
Current Year
31.03. 2012
Previous Year
31.03.2011
142.96
194.14
2.02
104.70
18.81
53.68
273.39
452.60
2.16
76.70
3.69
237.94
320.49
309.64
126.35
Deferred Tax Liabilities

Deferred Tax Assets
Provision for doubtful Advances
Provision for doubtful claim
Provision for doubtful debts
Provision for claim payable to vendor against escalation claim
Provision for leave encashment
Total
Note 12 : LONG TERM LOANS & ADVANCES
` in Lakhs
Particulars
Current Year
31.03. 2012
Previous Year
31.03.2011
4.16
64.02
45.36
603.42
10.04
379.10
10.04
681.64
434.50
Current Year
31.03. 2012
` in Lakhs
Previous Year
31.03.2011
200.92
151.56
Capital Advances
Unsecured, considered good
Advance against capital projects
Security Deposits
Security deposit with government departments and other parties
Advance Tax
Income Tax & TDS (net of provision)
Refund due against fringe benefit tax
Total
Note 13 : OTHER NON CURRENT ASSETS

Particulars
Inventory for Capital Projects
Stock of non-moving inventory
(held for period more than 3 years)
283.66
Less: Provision for Diminution in the

Value of Non-Moving Inventory
111.60
Claim Recoverable & Other Advances

Total
61
263.02
172.06
103.53
159.49
1.16
1.34
374.14
312.39
Ft;tytuk vh vte
vte
14
& J;w mqragt
` ttF
attq JMo 31.03. 2012
gtiht
CkzthK ;:t vqsuo
Fwtu ytisthtuk mrn; CkzthK J fUt-vqsuo
stu\z & vthdbl buk btt
stu\z & mbtgtusl nu;w tkrc; Nw fUbe
486.91
3.03
27.68
517.62
bwK YJk tuFl mtbd{e b=uk

f{iUv (rlvxtl fuU rtY tkrc;)
gtud
vte
15
d; JMo 31.03.2011
481.26
55.80
25.70
562.76
8.39
3.88
7.85
3.88
529.89
574.49
` ttF
& tg gtvth
gtiht
buk
attq JMo
buk
d; JMo
31.03. 2012
31.03.2011
1,586.77
-
925.88
395.60
57.97
57.97
563.66
11.09
11.09
395.60
563.66
1,982.37
1,489.54
Cwd;tl fuU rtY =ug fUe r;r: mu A& btn mu fUb yJr" fuU
rtY cfUtgt tg gtvth
DxtJuk& mkr=" }UKtuk fuU rtY tJ"tl
Cwd;tl fuU rtY =ug fUe r;r: mu A& btn mu yr"fU yJr" fuU
rtY cfUtgt tg gtvth
ymwhrG;, mkr=" btlt dgt
DxtJuk& mkr=" }UKtuk fuU rtY tJ"tl
gtud
mbg-mbg vh fUvle mkfUtl fuU rtY fUvle fuU rtY mCe d{tnfU cfUtgt fUt bqgtkfUl fUh fUh;e ni > tJ"tl fuU rtY sh;
fUt ytfUtl rJrlr=ox cfUtgtuk fUt mkfUtl, Wtud fUt sturFb "thKt mrn; rJrJ" fUthfUtuk vh yt"trh; ni stu d{tnfU mtbtg ytr:ofU
fUthfUtuk fUtu mkatrt; fUh;t ni stu d{tnfUtuk fuU rtY gJr:; fUhlu fUe Gb;t fUtu CtrJ; fUh mfU;t ni > fUvle ytb;tih vh =ul=thtuk
fuU rtY ;wtl vt r;r: fUtu cesfU r;r: mu ;el JMtuo y:Jt Wmmu yr"fU mbg fuU rtY =ug cfUtgt Wvt" fUh;e ni> fUvle Ctd
gt vqKo buk cfUtgtuk fUe Jmqte fUh hne ni >
62
NOTES ON ACCOUNTS
Note 14 : INVENTORIES
` in Lakhs
Particulars
Current Year 31.03. 2012
Stores and spares

Stores & Spare parts including loose tools
Add: Goods in transit
Add: Net shortage pending adjustments
486.91
3.03
27.68
Printing & stationery items

Scrap (pending for disposal)
Total
517.62
Previous Year 31.03.2011
481.26
55.80
25.70
562.76
8.39
3.88
7.85
3.88
529.89
574.49
Note 15 : TRADE RECEIVABLES
` in Lakhs
Particulars
Current Year
31.03. 2012
Previous Year
31.03.2011
1,586.77
-
925.88
395.60
57.97
57.97
563.66
11.09
11.09
395.60
563.66
1,982.37
1,489.54
Trade receivables outstanding for a period less than

six months from the date they are due for payment
Less: Provision for doubtful debts
Trade receivables outstanding for a period exceeding
six months from the date they are due for payment
Unsecured, considered doubtful
Less: Provision for doubtful debts
Total
Periodically the company evaluates all customer dues to the company for collectibility. The need for provision is
assessed based on various factors including collectibility of specific dues, risk perception of the industry in
which the customer operates, general economic factors which could affect the customers ability to settle. The
company normally provides for debtors due outstanding for three years or longer from the invoice date, as at the
Balance Sheet Date. The company pursues the recovery of the dues, in part or full.
63
Ft;tytuk vh vte
vte
16
& lfU= YJk cikfU yr"NuM
` ttF
attq JMo
d; JMo
31.03. 2012
31.03.2011
5.14
269.26
5,086.44
5.78
220.93
5,361.35
5,360.84
5,588.06
10.24
4,458.00
4,468.24
368.24
2,400.00
2,768.24
9,829.08
8,356.30
gtiht
lfU= YJk mb;wg lfU=e
nt: bku lfU=
cikfUtuk fuU vtm NuM
cikfUtuk fuU vtm mtJr" sbt
gtud
yg cikfU yr"NuM
cikfUtuk sbtl; fuU rJ mtJr" sbt*
ytunhz[tVTUx mwrJ"t fuU rJ rdhJe mtJr" sbt #
gtud
* cikfUtuk
# cikfUtuk
mu mtJr" sbt buk

mu mtJr" sbt buk
vte
17
12
btn mu yr"fU fUe vrhvJ;t fuU mt:

12 btn mu yr"fU fUe vrhvJ;t fuU mt:
`
`
Nqg (d; JMo 3.58 fUhtu\z) Ntrbt ni >

3.00 fUhtu\z (d; JMo Nqg) Ntrbt ni >
` ttF
& yvtJr"fU }UK YJk yrd{b

gtiht
attq JMo
d; JMo
31.03.2011
106.87
185.36
77.84
53.23
184.71
238.59
ytvqr;ofU;toytuk fUtu yrd{b

gtud
18
buk
31.03. 2012
yg
fUboatrhgtuk fUtu }UK YJk yrd{b
yrd{b YJk fUboatrhgtuk mu ntulu Jtte yg Jmqte
vte
buk
` ttF
& yg J;obtl ytr;gt
buk
attq JMo
d; JMo
31.03. 2012
31.03.2011
2,452.25
64.82
322.70
322.70
1,776.79
167.67
237.42
237.42
2,517.07
1,944.46
768.27
173.65
162.82
301.72
218.19
144.87
3,621.81
2,609.24
gtiht
tg =tJt ;:t yg yrd{b
ytgfU rct muJt Cth
ymwhrG;, mkr=" btlt dgt
DxtJuk& mkr=" btlt dgt
ytJr"fU sbt vh tu=TCq; gts

v]:fU rfUgt dgt muJt fUh
Rvt; mkgkttuk fuU vtm mwhGt sbt
gtud
64
NOTES ON ACCOUNTS
Note 16 : CASH & BANK BALANCE
` in Lakhs
Particulars
Current Year
31.03. 2012
Previous Year
31.03.2011
5.14
269.26
5,086.44
5.78
220.93
5,361.35
5,360.84
5,588.06
10.24
4,458.00
4,468.24
368.24
2,400.00
2,768.24
9,829.08
8,356.30
Cash and cash equivalents

Cash on hand
Balances with banks
Fixed Deposits with banks
Total
Other Bank Balances
Fixed deposit against bank guarantee*
Fixed deposit pledge against Overdraft Facility #
Total
* Fixed deposit with banks includes deposit of ` Nil (PY 3.58 crore) with maturity of more than 12 months
# Fixed deposit with banks includes deposit of ` 3.00 crore (PY Nil) with maturity of more than 12 months
Note 17 : SHORT TERM LOANS & ADVANCES

Particulars
` in Lakhs
Current Year
31.03. 2012
Previous Year
31.03.2011
106.87
185.36
77.84
53.23
184.71
238.59
Others
Loans & Advances To Employees
Advance & other recoverable from employees
Advance to Suppliers
Total
Note 18 : OTHER CURRENT ASSSETS
` in Lakhs
Particulars
Current Year
31.03. 2012
Previous Year
31.03.2011
2,452.25
64.82
322.70
322.70
1,776.79
167.67
237.42
237.42
2,517.07
1,944.46
768.27
173.65
162.82
301.72
218.19
144.87
3,621.81
2,609.24
Claim Recoverable & Other Advance

Unbilled service charges
Unsecured, Considered good
Unsecured, Considered Doubtful
Less: Considered Doubtful
Interest Accrued on Term Deposit

Service Tax Set Off
Security deposit with steel plants
Total
65
Ft;tytuk vh vte
vte
19
` ttF
& attltuk mu htsJ

gtiht
buk
d; JMo
attq JMo
31.03. 2012
31.03.2011
f{iUv fuU f{UbK ;:t yg rJrJ" fUtgtuo

mu muJt Cth (mfUt)
DxtJuk & muJt fUh
18,075.79
1,612.96
17,740.33
1,661.89
gtud
16,462.83
16,078.44
vte
20
` ttF
& yg ytg
gtiht
31.03. 2012
31.03.2011
849.34
1.10
528.92
62.31
9.27
0.55
85.61
40.15
6.59
0.06
123.11
47.44
986.02
768.43
yg
vrhNtur"; Gr;gt YJk yg Jmqrtgt
fUboatrhgtuk fUtu sthe mtbrd{gtuk mu tr;
tJ"tl yc she ln yvrtrF;
rJrJ" ytg
gtud
21
& WvCturd;
d; JMo
attq JMo
gts ytg
mtJr" sbt tr;gtuk vh gts
yg gts
vte
` ttF
mtbd{e fUe ttd;

ythkrCfU Ckzth
fUg
ykr;b Ckzth
attq JMo
31.03. 2012
gtiht
ttrmkd xTgqc
ytpmesl ;:t Ymerxrtl
lunfU ;ut
zest ;:t dimturtl
CkzthK ;:t fUt-vqsuo
gtud
d; JMo
buk
buk
d; JMo
31.03.2011
WvCtud
13.87
0.36
54.02
33.28
887.54
43.93
53.36
242.92
1,301.58
823.65
11.90
0.30
37.18
31.41
933.68
45.90
53.42
259.76
1,303.45
777.51
46.16
60.59
239.00
1,258.06
1,099.49
989.07
2,465.44
1,014.47
2,440.04
2,703.30
1,147.45
2,544.92
989.07
2,703.30
66
NOTES ON ACCOUNTS
Note 19 : REVENUE FROM OPERATIONS
` in Lakhs
Particulars
Current Year
31.03. 2012
Previous Year
31.03.2011
18,075.79
1,612.96
17,740.33
1,661.89
16,462.83
16,078.44
Service charges from process of scrap and

other miscellaneous jobs (Gross)
Less: Service Tax
Total
Note 20 : OTHER INCOME
` in Lakhs
Particulars
Current Year
31.03. 2012
Previous Year
31.03.2011
849.34
1.10
528.92
62.31
9.27
0.55
85.61
40.15
6.59
0.06
123.11
47.44
986.02
768.43
Interest Income
Interest on FDR
Other Interest
Others
Liquidated damages and other recoveries
Receipt from materials issued to employees
Provision no longer required written back
Miscellaneous Income
Total
Note 21 : COST OF MATERIAL CONSUMED

Opening Stock
` in Lakhs
Purchase Closing Stock Current Year Previous Year

31.03. 2012
31.03.2011
Particulars
Lancing Tubes
Oxygen & Acetylene
Lubricants
Diesel & Gasolene
Stores & Spare Parts
Total
Previous Year
CONSUMPTION
13.87
0.36
54.02
33.28
887.54
43.93
53.36
242.92
1,301.58
823.65
11.90
0.30
37.18
31.41
933.68
45.90
53.42
259.76
1,303.45
777.51
46.16
60.59
239.00
1,258.06
1,099.49
989.07
2,465.44
1,014.47
2,440.04
2,703.30
1,147.45
2,544.92
989.07
2,703.30
67
Ft;tytuk vh vte
vte
22
` ttF
& fUboathe ylwttC gg

gtiht
31.03.2011
0.85
80.45
5,064.12
498.55
300.00
605.77
2.67
58.37
4,769.61
525.73
300.00
486.42
6,549.74
6,142.80
gtud
23
` ttF
& rJt ttd;uk

gtiht
d; JMo
attq JMo
31.03.2011
86.60
3.50
13.71
4.23
90.10
17.94
gtud
24
` ttF
& yg gg
gtiht
d; JMo
31.03. 2012
31.03.2011
315.87
150.91
26.04
18.16
100.87
156.87
352.43
541.36
22.79
17.55
114.47
147.79
374.51
64.45
438.96
333.77
47.17
353.44
rJrJ" gg
tuFt vheGfUtuk fUt vtrhrbfU
Ji"trlfU tuFt NwfU
VwUxfUh Fao
fUh tuFt NwfU
btKl NwfU
buk
attq JMo
rJw;, Ro"l ;:t ytpmesl
rfUhtgt
cebt
=h YJk fUh
CUtu mrn; gttt
mwhGt muJtY
bhb; YJk ylwhGK
bNelhe fUe bhb;
yg fUe bhb;
buk
31.03. 2012
gts Fao
cikfU Cth
vte
d; JMo
attq JMo
31.03. 2012
Ju;l ;:t J;w mqragt

ctulm
b ;tsde
Ju;l ;:t bs=qhe
CrJg rlr" ;:t yg rlr" buk ykN=tl
Wvt=tl rlr" ykN=tl
fUboathe fUgtK gg
vte
buk
1.00
1.25
0.20
0.05
2.50
1,563.62
gtud
68
380.94
286.03
0.65
1.00
0.15
0.05
1.85
1,865.21
NOTES ON ACCOUNTS
Note 22 : EMPLOYEE BENEFIT EXPENSES
` in Lakhs
Particulars
Current Year
31.03. 2012
Previous Year
31.03.2011
0.85
80.45
5,064.12
498.55
300.00
605.77
2.67
58.37
4,769.61
525.73
300.00
486.42
6,549.74
6,142.80
Salaries and incentives

Bonus
Labour Refreshment
Salary & Wages
Contributions to Provident and other fund
Gratuity fund contributions
Staff welfare expenses
Total
Note 23 : FINANCE COSTS
` in Lakhs
Particulars
Current Year
31.03. 2012
Previous Year
31.03.2011
86.60
3.50
13.71
4.23
90.10
17.94
Interest expense
Bank Charges
Total
Note 24 : OTHER EXPENSES
` in Lakhs
Particulars
Current Year
31.03. 2012
Previous Year
31.03.2011
315.87
150.91
26.04
18.16
100.87
156.87
352.43
541.36
22.79
17.55
114.47
147.79
Power, fuel and oxygen

Rent
Insurance
Rates & Taxes
Travelling including allowances
Security Services
Repair And Maintenance
Repairs to Machinery
Repairs to Others
374.51
64.45
Miscellaneous Expenses
438.96
333.77
47.17
353.44
Auditors Remuneration
Statutory Audit Fees
Out of Pocket Expenses
Tax Audit Fees
Certification Fees
1.00
1.25
0.20
0.05
Total
2.50
1,563.62
69
380.94
286.03
0.65
1.00
0.15
0.05
1.85
1,865.21
Ft;tytuk vh vte
vte
25
& ymt"thK ;:t ymtbtg f]Ur; fUe b=tuk fUt gtiht

gtiht
attq JMo
49.51
213.55
84.97
10.39
31.82
6.33
305.82
(6.33)
` ttF
& vqJtoJr"fU b=tuk fUt gtiht

gtiht
attq JMo
d; JMo
31.03.2011
12.32
0.63
16.01
0.68
12.95
16.69
0.25
10.17
1.96
0.15
1.02
0.29
12.38
1.46
0.57
15.23
F. Fao
F-1.btt Ct\zt
F-2.yJbqgl
F-3.muJt Cth
F-4.cikfU gts
F-5.=h rl"tohK
F-6.vxTTxt rfUhtgt
gtud
27
` ttF
& r; ykN Wvtsol

gtiht
buk
31.03. 2012
fU. ytg
fU-1.mulJux f{uUrzx
fU-2.mkvr; vwlth
fU-3.bhb; YJk ylwhGK
fU-4.st, rJ"w;
vte
d; JMo
31.03.2011
gtud (fU-F)
26
buk
31.03. 2012
ymt"thK b=uk
fU. gg
fU. mkr=" }UKtuk fuU rtY tJ"tl
(3 JMtuok mu yr"fU fuU cfUtgt }UKtuk fuU rtY)
F. J]r =tJt fuU rJ rJf{uU;t fUtu =ug =tJt fuU rtY tJ"tl
d. cebt =tJt fuU rJ tJ"tl
F. ytg
fU. :tge ytr;gtuk fUt rJf{Ug
F. tJ"tl she lne yvurG;
vte
` ttF
attq JMo
buk
d; JMo
31.03. 2012
31.03.2011
137.49
119.70
20,000
20,000
20,000
20,000
687.43
687.43
598.47
598.47
mtgtkN "thfUtuk fuU rtY Wvt" ttC YJk ntrl

Ft;t fuU ylwmth Nw ttC/(ntrl)
r; ykN ytg dKlt fuU mtgkNtuk fUe Ctrh; ytim; mkgt
1. r; ykN btirtfU Wvtsol fuU rtY
2. r; ykN rbr; Wvtsol fuU rtY
r; ykN Wvtsol (ttF ` buk )
btirtfU
rbr;
70
NOTES ON ACCOUNTS
Note 25 : Details of Items of Exceptional and Extraordinary nature

Particulars
` in Lakhs
Current Year
31.03. 2012
Previous Year
31.03.2011
49.51
213.55
84.97
10.39
31.82
6.33
305.82
(6.33)
Exceptional Items:
A. Expenditure
a. Provision for Doubtful Debt
(for debt outstanding for more than 3 years)
b. Provision for claim payable to vendor against escalation claim
c. Provision against insurance Claim
B. Income
a. Sale of Fixed Assets
b. Provision No Longer Required
Total (A-B)
Note 26 : Details of Prior Period Items
` in Lakhs
Particulars
Current Year
31.03. 2012
Previous Year
31.03.2011
12.32
0.63
16.01
0.68
12.95
16.69
0.25
10.17
1.96
0.15
1.02
0.29
12.38
1.46
0.57
15.23
A. Income
A-1. Cenvat Credit
A-2. Asset Revival
A-3. Repair & Maintenance
A-4. Water Electricity
B. Expenses
B-1. Freight
B-2. Depreciation
B-3. Service Charge
B-4. Bank Interest
B-5. Rate Revision
B-6. Lease Rent
Total
Note 27 : EARNINGS PER SHARE
` in Lakhs
Particulars
Current Year
31.03. 2012
Previous Year
31.03.2011
137.49
119.70
20,000
20,000
20,000
20,000
687.43
687.43
598.47
598.47
Net Profit/(Loss) as per Profit & Loss Account

available for Equity Shareholders
Weighted Average number of equity shares for
Earnings per Share computation
1. For Basic Earnings per Share
2. For Diluted Earnings per Share
Earnings per Share (In `)
Basic
Diluted
71
Ft;tytuk vh vte
vte
fU.
mk.
28
` ttF
& mbtr; =trgJ YJk r;c;t

gtiht
attq JMo
31.03. 2012
buk
d; JMo
31.03.2011
(i)
mbtr; =trgJ
fU. fUvle fuU rJ }UK fuU v buk yJef]U; =tJt
1
yr"rlKog fuU ;n;T vqJo fUboatrhgtuk ytih yg ttudtuk fuU rtY Gr;vqr;o nu;w tJ"tl fuU rtY
2
ni=htct= fuU Wa gtgttg fuU yt=uNtlwmth bu. v;tq fUmx[Nl fUt rJstd CJl =tJt
fuU rtY
rmrJt gtgt"eN, ytectd fuU vtm rmrJt Jt= fuU ylwmth bu. ytWzch Rserlgrhkd
3
Jmo tht ztutJe buk bhb; fUtgo fuU rtY
Wv gtud
F. muJt fUh
1
zwcwhe RfUtRo buk fUtdtuo nizrtkd muJtytuk vh muJt fUh, simt rfU fuUeg ytcfUthe,
stsvwh fuU y"eGfU lu btkd fUe ni (rfUgt dgt Nw Cwd;tl), meRoYmxeYxe,
fUtutfUt;t fuU mbG tkrc; ni >
2
rCttRo, =wdtovwh, rJstd, ztutJe YJk zwcwhe RfUtRo buk gtvth vqhfU muJtytuk vh muJt
fUh, simt rfU fuUeg ytcfUthe YJk mebt NwfU, htgvwh fuU ytgw; lu yt=uN
r=gt ni, rsmfuU rJ fkUvle meRoYmxeYxe, r=te fuU mbG yvet fUe ni
3
ctufUthtu RfUtRo buk gtvth vqhfU muJtytuk vh muJt fUh, simt rfU fuUeg ytcfUthe
YJk mebt NwfU, htae fuU ytgw; lu yt=uN r=gt ni, ytgw;, htae ;:t
meRoYmxeYxe fUtutfUt;t fuU mbG tkrc; ni >
4
clovwh RfUtRo buk gtvth vqhfU muJtytuk vh muJt fUh, simt rfU yr;rh; ytgw;,
fuUeg ytcfUthe YJk mebt NwfU, ctutvwh ;:t mntgfU ytgw;, fuUeg ytcfUthe
YJk mebt NwfU, ytmlmtut lu yt=uN r=gt ni, ytgw; (yvet), fUtutfUt;t fuU
mbG tkrc; ni >
5
rCttRo RfUtRo buk fUtdtuo nizrtkd muJtytuk vh muJt fUh, simt rfU fuUeg ytcfUthe YJk
mebt NwfU, htgvwh lu yt=uN r=gt ni, meRoYmxeYxe, r=te fuU mbG tkrc; ni >
zwcwhe RfUtRo buk fUtdtuo nizrtkd muJtytuk vh muJt fUh, simt rfU ytgw;, fuUeg
6
ytcfUthe, CwcluJh lu bRo, 2004 mu btao, 2007 fUe yJr" fuU rtY btkd fUe ni,
fuUeg ytcfUthe, CwcluJh fuU mbG tkrc; ni >
7
=wdtovwh Rvt; mkgkt ;:t Yttpg mkgkt buk f{UbN& yit, 2003 mu btao, 2008 ;:t
yxqch, 2003 mu lJch, 2008 fUe yJr" fuU rtY gtvth vqhfU muJt ;:t fUtdtuo
nizrtkd muJtytuk vh muJt fUh, meRoYmxeYxe, fUtutfUt;t fuU mbG tkrc; ni >
yit, 2008 mu bRo, 2009 ;:t sql 2009 mu rm;ch, 2009 fuU yJr" fuU rtY
8
f{UbN& gtvth vqhfU muJt ;:t fUtdtuo nizrtkd muJtytuk vh muJt fUh, meRoYmxeYxe,
fUtutfUt;t fuU mbG tkrc; ni >
9
zwcwhe RfUtRo buk fUtdtuo nizrtkd muJtytuk vh muJt fUh, simt rfU yit, 2009 mu
btao, 2010 fUe yJr" fuU rtY ytgw;, CwcluJh lu btkd fUe ni,
meRoYmxe, fUtutfUt;t fuU mbG tkrc; ni >
10 =wdtovwh RfUtRo buk gtvth vqhfU muJt vh muJt fUh, simt rfU yxqch, 2009 mu
btao, 2010 fUe yJr" fuU rtY ytgw;, fuUeg ytcfUthe, ctutvwh lu btkd fUe
ni, meRoYmxeYxe, fUtutfUt;t fuU mbG tkrc; ni >
Wv gtud
72
91.22
86.28
53.14
49.38
20.11
19.62
164.47
155.28
42.03
39.20
660.72
629.02
1,395.92
1,247.82
71.93
134.51
324.01
304.74
256.02
232.88
1,973.99
1,896.07
482.31
458.40
69.64
150.19
74.86
5,351.43
5,092.83
NOTES ON ACCOUNTS
Note 28 : CONTINGENT LIABILTIES & COMMITMENTS

Sl
Particulars
No.
(i)
` in Lakhs
Current Year
31.03. 2012
Previous Year
31.03.2011
Contingent Liabilities
A.
Claims against the company not acknowledged as debt
For compensation to ex-employees and others under adjudication

estimated at
91.22
86.28
For Vizag building claim of M/s Pantalu Construction as per order of

High Court of Hyderabad
53.14
49.38
"For repair job at Dolvi Unit claimed by M/s Audumber Engineering

Works as per Civil Suit with Civil Judge, Alibag"
20.11
19.62
164.47
155.28
Sub Total
B.
Service Tax
"Service tax on Cargo Handling Services at Duburi unit as demanded

by Suptd. of Central Excise, Jajpur.(net of payment made) pending
before CESTAT, Kolkata."
42.03
39.20
"Service Tax on Business Auxiliary Services at Bhilai,Durgapur,Vizag,

Dolvi & Duburi unit as ordered by Commissioner of Central Excise and
Customs Raipur against which the company preferred an appeal
before CESTAT, Delhi."
660.72
629.02
"Service Tax on Business Auxiliary Services at Bokaro unit as

ordered by Commissioner Central Excise and Customs, Ranchi,
pending before Commissioner, Ranchi and CESTAT, Kolkata"
1,395.92
1,247.82
"Service tax on Business Auxiliary Services at Burnpur unit as

ordered by Additional Commissioner, Central Excise & Customs,
Bolpur and Assistant Commissioner, Central Excise and Custom,
Asansol pending before Commissioner (Appeal), Kolkata"
71.93
134.51
Service tax on Cargo Handling Services at Bhilai unit as ordered by

Commissioner of Central Excise and Customs, Raipur, pending
before CESTAT, Delhi.
324.01
304.74
Service tax on Cargo Handling Services at Duburi unit Demanded by

Commissioner, Central Excise, Bhubaneswar for the period from
May 2004 to March 2007, pending before Commissioner, Central
Excise, Bhubaneswar
256.02
232.88
Service tax on Business Auxilliary Service and Cargo Handling

Services at Durgapur Steel Plant and Alloy Steel Plant for the period
from April 2003 to March 2008 and October 2003 to November 2008
respectively, pending before CESTAT; Kolkata.
1,973.99
1,896.07
Service Tax on Business Auxillary Service and Cargo Handling

Services at Durgapur Steel Plant for the period April2008 to May2009
and June2009 to September2009 respectively, pending before
CESTAT, Kolkata and Commissioner, Kolkata.
482.31
458.40
Service Tax on Cargo Handling Services at Duburi unit as demanded

by Commissioner, Bhubaneswar for the period April2009 to March2010
is pending before CESTAT, Kolkata.
69.64
150.19
10
Service Tax on Business Auxillary Service at Durgapur Unit as

demanded by Commissioner, Central Excise, Bolpur for the period
October 2009 to March 2010, is pending before CESTAT, Kolkata.
74.86
5,351.43
5,092.83
Sub Total
73
Ft;tytuk vh vte
vte
28
fU.mk.
& mbtr;
=trgJ YJk r;c;t
` ttF
gtiht
attq JMo
d; JMo
31.03. 2012
31.03.2011
43.56
43.56
11.13
11.13
2.16
54.69
56.85
12.00
17.43
295.08
8.91
29.43
303.99
5,600.02
5,608.95
74.62
119.49
d. rJf{Ug fUh ;:t yg fUh

1 htWhfuUtt RfUtRo buk rJf{Ug fUh ;:t JuN fUh fuU rtY,
simt rfU W\zemt rJf{Ug fUh rJCtd lu btkd fUe ni, rJf{Ug
fUh gtgtr"fUhK, fUxfU fuU mbG tkrc; ni >
2
buk
yr"mqra; Gut vrhM=, htWhfuUtt (Rvt; ldhe) tht

zvhtuk, ztushtuk ytr= simu Cthe Cq-WvfUhtuk vh awkde
fuU rtY, W\zemt Wa gtgttg fuU mbG tkrc; ni >
htWhfuUtt RfUtRo buk m\zfU fUh fuU rJtc Cwd;tl fuU
rtY y:o=z, W\zemt Wa gtgttg fuU vtm tkrc; ni >
Wv gtud
D. cfUtgt cikfU gtCq

E. cfUtgt mtF vt
Wv gtud
mfUt gtud
(ii)
r;c;t
fU. vkse Ft;u vh rlvtr=; rfUY stlu nu;w NuM XufuU fUe
ylwbtrlfU htrN ;:t rsmfuU rtY gJ:t lnek fUe
dge (Cwd;tl fUt Nw)
vte
fU.mk.
1
2
29
& me ytR YVU yt"th vh ytgt;tuk fUt bqg
` ttF
buk
attq JMo
d; JMo
31.03. 2012
31.03.2011
10.17
10.17
gtiht
yJgJ YJk vqsuo
vqksed;T btt
gtud
74
NOTES ON ACCOUNTS
Note 28 : CONTINGENT LIABILTIES & COMMITMENTS

Sl.
Particulars
Current Year
31.03. 2012
Previous Year
31.03.2011
Sales Tax and Other Taxes

For Sales Tax and Entry Tax at Rourkela unit as
demanded by Orissa Sales Tax Department,
pending before Sales Tax Tribunal, Cuttack.
43.56
43.56
"For octroi on heavy earthmoving equipment like

Dumpers, Dozers etc. by Notified Area Council,
Rourkela (Steel Township), pending before
Orissa High Court "
11.13
11.13
2.16
54.69
56.85
No.
C.
1
` in Lakhs
Penalty for delayed payment of Road Tax at

Rourkela unit, pending at Orissa High Court
Sub Total
D.
Outstanding Bank Guarantees
12.00
295.08
E.
Outstanding Letter of Credit
17.43
8.91
29.43
303.99
5,600.02
5,608.95
74.62
119.49
Sub Total
Grand Total
(ii) Commitments
A.
Estimated amount of contracts remaining to be

executed on capital account and not provided
for (net of advance)
Note 29: VALUE OF IMPORTS ON CIF BASIS

Sl.
Particulars
Current Year
31.03. 2012
Previous Year
31.03.2011
Components & Spares

Capital Goods
10.17
10.17
No.
1
2
` in Lakhs
Total
75
vte
30
& mkckr"; vG mkgJnth
mkckr"; vGtuk fUe mqae, snt rlgktK btisq= ni ;:t rsmfuU mt: tul-=ul fUe dge ni, mkckr"; vG ;:t
mkck" &
` ttF buk
fU.m.
mkcr"; vG fUt ltb
mkcr"; vG
mkck"
fUe f]Ur;
Yb Ym xe me rt0
rlgte fkUvle
e Yxtule atfUtu
ck" rl=uNfU
vte
31
mgJnth fUe
f]Ur;
lettbe fuU rtY

muJt Cth
vtrhrbfU
attq JMo
d; JMo
31.03. 2012
31.03.2011
2.82
1.92
21.25
20.46
d; JMtuo fuU ytfU\zu fUtu snt ytJgfU ntu, rJCtrs; ;:t vwlombqnef]U; rfUgt dgt ni ;trfU btisq=t mtt fuU ytfU\zu fuU ylwv
ntu mfuU >
vte
32
J;obtl ytr;gt, }UKuk YJk yrd{buk cr\Zgt YJk Jmqte gtug ni ;:t bqgtuk fuU tdCd ni gr= sc;fU gtvth fuU mtbtg
vtXTgf{Ub buk fUtgtorJ; ntu;t ni YJk Ft;tuk buk YfU mebt ;fU yg:t l fUnt dgt > Cwd;ug gtvth, tg gtvth. }UKtuk YJk
yrd{btuk fUt yr"NuM mbt"tl ;:t vwrx fUhlu fuU y"el ni >
vte
33
;wtl vt ;:t ttC YJk ntrl Ft;t WmfuU mt: Wvtc vrX; rxvrKgt ;igth fUh;t ni ;trfU fUvle yr"rlgb, fuU ;n;T
yvurG; mqalt fuU mt:-mt: JMtkuo fUe mbtr; ;fU ;:t mbeGt"el JMtuo fuU rtY fUvle fuU vrhKtbtuk fUt fUvle fuU fUtbfUts
fUt rJJhK fUt mne ytih rlvG =]rxfUtuK fUt Fwttmt ntu >
34
fU) rCttRo RfUtRo b yit O08 mu rm;Jh O08 fUe yJrt fuU rtY f{iUv fUe rhfUJhe YJk f{UbK fUuU fUtgtuo fuU rtY IIfUtdtuo
nizrtkd muJtytOO vh muJt fUh fuU vrhug b ` 152.05 ttF nu;w ytgwU, fuU={eg ytcfUthe, htgvwh lu fUthK c;tytu lturxm
sthe rfUgt ni> WU fUthK c;tytu lturxm fUt sJtc ytgw;, fuUeg ytcfUthe, htgvwh fUtu ;w; rfUgt dgt ni ;:t gr;d;
mwlJtRo Ce ntu dge ni YJk yc fuUJt yt=uN t; ntult ctfUe ni >
F) rCttRo RfUtRo b yxqch 2009 mu btao 2010 fUe yJrt fuU rtY f{iUv fUe rhfUJhe YJk f{UbK fUuU fUtgtuo fuU rtY IIfUtdtuo
nizrtkd muJtytOO vh muJt fUh fuU vrhug b ` 181.68 ttF fuU rtY fUthK c;tytu lturxm ytgw;, fuUeg ytcfUthe, htgvwh
lu sthe rfUgt dgt ni > W; fUthK c;tytu lturxm fUt sJtc ytgw;, fuUeg ytcfUthe, htgvwh fUtu ;w; rfUgt dgt ni ;:t
gr;d; mwlJtRo ntult ctfUe ni >
d) rCttRo RfUtRo b yxqch 2008 mu rm;ch 2009 fUe yJrt fuU rtY f{iUv fUe rhfUJhe YJk f{UbK fuU fUtgtuo fuU rtY
IIfUtdtuo nizrtkd muJtytOO vh muJt fUh fuU vrhug b ` 245.72 ttF fUt fUthK c;tytu lturxm ytgw;, fuUeg ytcfUthe,
htgvwh lu sthe rfUgt ni W; fUthK c;tytu lturxm fUt sctc ytgw;, fuUeg ytcfUthe, htgvwh fUtu ;w; rfUgt dgt ni ;:t
gr;d; mwlJtRo Ce ntu dge ni YJk yc fuUJt yt=uN t; ntult ctfUe ni >
35
YVU Ym Yl Yt rJh bu0 Rrzgl ytpmesl rtrbxuz fuU fUhK buk r=. 01.06.2002 fUtu rJJtal gtgtr"fUhK tht vtrh;
YfU vGeg katx fUtu nxtlu yr;rh; rstt gtgt"eN, =wdo fuU gtgttg buk fUhK f{UbtkfU Yb.su.me. -34/2005 =tgh fUe dge :e
;:t rstt gtgttg, =wdo lu r=ltkfU 29.11.2010 fuU yt=uN fuU ylwmth fUvle tht =tgh gtrafUt fUtu Fthes fUh r=gt ni > fkUvle
lu rstt gtgttg, =wdo tht vtrh; yt=uN fuU rJh btlleg Wa gtgttg, Atemd\z, rcttmvwh fuU mbG yvet =tgh fUe
ni > ;:trv, fkUvle lu Rm ctJ;T c\Ztuthe =tJt fUt attq rJt JMo buk ` 213.55 ttF fUt tJ"tl hFt ni >
76
Note 30: RELATED PARTY TRANSACTIONS

List of related parties where control exists and related parties with whom
transaction has taken place and relationships:
` in Lakhs
Nature of
Sl. No.
Name of Related Party
MSTC Ltd
Shri Antony Chacko
Related Party
Nature of
Current Year
Previous Year
Relationship
Transaction
31.03. 2012
31.03.2011
2.82
1.92
21.25
20.46
Holding
Service Charges
Company
for Auction
Managing Director Remuneration
Note 31
Figures of Previous Years have been split up and regrouped wherever necessary so as to correspond to current
year's figures.
Note 32
The current assets, loans and advances are good and recoverable and are approximately of the values, if realized
in the ordinary course of business unless and to the extent stated other wise in the accounts. Balances of trade
payables, trade receivables, loans and advances are subject to reconciliation and confirmation.
Note 33
Balance Sheet and Profit & Loss Account read together with the notes thereon, are drawn up so as to disclose the
information required under The Companies Act, 1956 as well as give a true and fair view of the statement of
affairs of the Company as at the end of the year and results of the Company for the year under review.
34. a)
The Commissioner, Central Excise of Raipur has issued show cause notice for `152.05 lakhs towards
service tax on Cargo Handling Services for the jobs of recovery and processing of scrap at Bhilai unit
for the period April 08 to September08. The reply of above show cause notice has been submitted to
Commissioner, Central Excise, Raipur and also personal hearing took place and order is yet to be
received.
b) The Commissioner, Central Excise of Raipur has issued show cause notice of ` 181.68 lakhs towards
service tax on Cargo Handling Services for the job of recovery and processing of scrap at Bhilai unit for
the period Oct 2009 to March 2010. The reply to the show cause notice has been submitted to
Commissioner ,Central Excise , Raipur and personal hearing is pending.
c)
The Commissioner, Central Excise of Raipur has issued show cause notice of `245.72 lakhs towards
service tax on Cargo Handling Services for the job of recovery and processing of scrap at Bhilai unit for
the period Oct 2008 to September 2009. The reply to the show cause notice has been submitted to
Commissioner, Central Excise, Raipur and also personal hearing took place and order is yet to be
received.
35. In the case of FSNL vs M/s Indian Oxygen Limited, Case No. MJC 34/2005 filed in the court of Additional
District Judge, Durg to set aside the ex-parte award passed by the Arbitration Tribunal on 01.06.2002, the
District Judge, Durg vide Order dated 29.11.2010 has dismissed the application filed by the Company. The
Company has preferred appeal against the Order passed by the District Judge, Durg before the Honorable
High Court of Chhattisgarh, Bilaspur. The Honorable High Court has admitted the appeal. However the company
has made provision of ` 213.55 lakhs against the escalation claim during the current year.
77
36
fkUvle yvlu :tge ytr;gt fUtu Ctrh; hfUb fUtu fiUN slhurxkd gqrlx (me.se.gq) fuU v b mbd{ fkUvle fUt btl;u nwY mbeGt
fUh hne ni> RmrtY fUkvle lu, ( me.se.gq ntulu fuU lt;u), yvlu :tge ytr;gt fUe CrJg fuU lfU= Jtnt fuU J;obtl bqg fuU
mt: ;wtlt fUe ni ytih gn fUtuRo tm lnek =Nto;t ni>
37
YbYmYbRo (simt rfU vte-7 buk c;tgt dgt ni), fUtu =ug hfUb fUe mebt ;fU ni, Jimu Wvf{Ubtuk fUtu rarn; rfUgt dgt > fkUvle
lu YbYmYbRo RfUtRogtuk fUtu mtbtg;& mbg vh Cwd;tl rfUgt ni ;:t gntp vGtuk tht gts yr;Ntug Cwd;tl fuU rtY fUtuRo =tJt
lnek rfUgt dgt ni >
38
f{iUv/tid rhfUJhe/ZwttRo rJteg mbSti;t fuU yCtJ buk ytvme ct;ae; =h tkrc; ykr;b mbSti;t ylwck" fuU ;=Tlwhv ytg fUt
tJ"tl ` 818.36 ttF hvgt ni, rsmfUt rJJhK rlltlwmth ni &(fU) rCttRo, ctufUthtu, htWhfuUtt, =wdtovwh YJk RfUtu clovwh fuU rtY 01 yxqch, 2011 mu 31 btao, 2012 ;fU fuU rtY mut,
rldbl fUtgtotg buk mCe b=tuk buk mbSti;t fUt rlvxtht rfUgt dgt, rsmfUe htrN ` 598.36 ttF ni >
(F) yth.ytR.Yl.Yt., rJNtFtvxTxKb fuU rtY 01 swttRo, 2011 mu 31btao, 2012 ;fU fuU rtY mCe b=tuk buk c\Ztuthe nu;w
=eDofUtrtfU mbSti;t rfUgt dgt, rsmfUe htrN ` 220.00 ttF ni >
39
JMo fuU =tihtl 31 r=mkch, 2011 mu dih-fUtgovttfU fUboatrhgtuk fuU Ctu fUe bttt buk vwlheGK fuU rtY mbSti;t fUtu ykr;b v
r=gt dgt ni > Ju;l vwlheGK fuU rtY JMo fuU =tihtl 01.01.2012 fuU CtJ mu ` 96.36 ttF ylwbtrl; yt"th vh cltgt dgt
ni ytih r=gt dgt >
40
fkUvle mulJux f{uUrzx fUe vtt;t r=ltpfU 01.04.2010 mu mulJux f{uUrzx rlgb 2004 fuU rlgb 3(1) fuU ;n; tu hFe ni, ;=lwv
01yit, 2010 fUtu gt WmfuU ct= mtbd{e Fhe=e, rsm vh rJf{Ug fUh/Jix, Ct\zt YJk yg Fauo turfUl Wvt= NwfU fUtu Atu\zfUh,
mtbd{e fUtu J;obtl yJ:t buk ttlu fUt mCe Fatuuo fUtu mbtrn; rfUgt dgt ni > scrfU, rJt JMo 2010-11 fUt mulJux fuUrzx
fkUvle lu rJt JMo 2010-12 buk tu te ni> y;YJ ` 12.32 ttF fUtu d;T JMo fuU ytg buk hFt ni 01 yit, 2010 fUu vntu
vqJo fuU ttgu dgu xtpfU ytd; Wvt= NwfU fUtu stu\zfUh ni >
41
CkzthK fUe J;w mqragt fuU Ctir;fUeg sta fuU =tihtl ctufUthtu, rJNtFtvxTxKb, ztuJe ;:t htWhfuUtt RfUtRogt fuU vrhug b fUrbgt
rbte> Atlcel tkrc; hnlu ;fU Nw fUbe fuU rtY ` 1.92 ttF fUt tJttl cltgt dgt ni >
42
htpae RfUtRo fUt mkattl (Ya.Ro.me., htpae fuU yk=h) 01 yit, 2011 mu :rd; rfUgt dgt > JMo fuU =tihtl ` 12.67 ttF fUt
Fao mkvrtgtuk fUt :tlt;hK YfU RfUtRo mu =wmhu RfUtRo ;:t :tvlt YJk NtmrlfU b=tuk vh rfUgt dgt ;:t fUtuRo Ce bwF
mkvrtgtuk fUe rcf{Ue ln fUe dge ;:t YfU RfUtRo mu =wmhu RfUtRo bwF Wvt= ytiDturdfU vrhr:r;gtuk fuU ;n;T htpae RfUtRo buk
mtbtg mkattl Fatuo buk mbtrn; rfUgt dgt ni >
43
=tJtytuk YJk yrd{btuk fuU rJh tJ"tl cltgt dgt ni snt fUn ck"l fUe htg buk Wm yrd{b/=tJt fUtu mkr=" btlt dgt ni>
44
JMo fuU =tihtl fUvle fiUv rlfUttlu YJk yg fUtgo rJrCl Cth;eg Rvt; mkgkttuk buk g; :t stu rfU tuFt rl"tohK YYm 17
fuU ;n;T r;Ju=lt:o gJmtg Fz buk rJathKeg btt ni > CtidturtfU Fz Rmmu mckr"; ln ni gtukrfU fUkvle fuU vtm gJmtg
fUt mkattl Cth; fuU ctnh ln ni >
fUboathe ylwttC &

45.1
vrhCtrM; ylwttC gtuslt fUt mkrGt ratK &

(fU) yJfUtN lfU=efUhK - rJgtusl vh vtt fUboatrhgt, rsntlu yrso; yJfUtN ;:t yo-Ji;rlfU yJfUtN mkra; rfUgt
ni, fUtu Cwd;ug> fiUtuzh JMo b YfU cth 30 r=Jmt ;fU mkra; yrso; yJfUtN fuU lfU=efUhK fUhlu fUe Ce bksqhe
ni>
(F) muJtrlJ]rt vat;T - rarfUmt ylwttC buzejub Rgqhum vtprtme fuU ;n;T muJtrlJ]t fUboatrhgt fUtu rfUme
rarfUmttg b Wvtt>
(d) muJtrlJ]rt vat; rlvxtht ylwttC - muJtrlJ]rt fUhlu Jttu fUboatrhgt fUtu WlfuU tht DturM; d]n ldh b cmlu fuU
rtY Cwd;ug>
78
36. The company reviews the carrying amount of its fixed assets treating the entire company as a Cash Generating
Unit (CGU). Hence, the company (being a CGU) has compared the carrying amount of its fixed assets with
present value of future cash flows and it does not show any impairment.
37. The amount due to MSME (as disclosed in Note 7) is to the extent such undertakings have been identified.
The company has normally made payment to MSME units in due time and there are no claim from the parties
for interest or overdue payment.
38. Scrap/Slag recovered/shipped has been accounted for on the basis of negotiated rate pending finalisation
of agreement and provisional income amounting to ` 818.36 lakhs has been taken to consideration as per
details given below :(a) For increase in the service charge rate for all the items of long-term agreement finalized at SAIL,Corporate
office for the period 01 October 2011 to 31 March 2012 for Bhilai,Bokaro,Rourkela, Durgapur and IISCO
Burnpur, amounting to ` 598.36 Lakhs.
(b) For increase in the service charges rates for all the items of long-term agreement finalized by RINL,
Visakhapatnam for the period 01 July 2011 to 31 March 2012 amounting to ` 220.00 Lakhs.
39. The Agreement for Wage revision of Non executive employees expired on 31st December 2011. Pending
finalisation of the fresh agreement w.e.f. 1st January 2012, provision of ` 96.36 lakhs for the year towards
wage revision has been estimated and provided.
40. The company has availed cenvat credit on all eligible inputs with effect from 01st April, 2010 in Accordance
with rule 3 (1) of the Cenvat Credit Rules, 2004. Accordingly, cost of inventory procured on or after 01st April,
2010 includes price, sales tax/VAT, freight and all other costs incurred in bringing the inventories to their
present location and condition but exclude excise duty. Since cenvat credit on inputs for FY 2010-11 has
been availed during FY 2011-12, the company has credited ` 12.32 lacs as prior period income. Stock of
input bought prior to 01st April, 2010 is inclusive of excise duty.
41. During Physical verification of Inventories of stores, Shortages were found in respect of Bokaro, Vizag,
Dolvi and Rourkela units. Pending investigation, provision has been made for the net shortage of ` 1.92
lakhs.
42. The operation of Ranchi unit (inside HEC, Ranchi ) has been stopped w.e.f. 1st April 2011. During the Year
the expenditure of ` 12.67 lakhs has been incurred towards establishment and administrative overheads at
the said unit for purpose of transferring the assets set up at the units to other units. No major assets has
been disposed off at the unit nor the unit qualify for any major product line or geographical presence for the
company and accordingly all expenses incurred in Ranchi unit has been included under normal operational
cost.
43. Provision is made against Claims and Advances wherever such advance/claim is considered doubtful in the
opinion of management.
44. During the year the company was engaged only in the business of Scrap Recovery and Allied Jobs for
various Steel Plants in India which as per Accounting Standard AS17 is considered the only reportable
business segment. The geographical segmentation is not relevant, as the company has no business operation
outside India.
45. Employee Benefits
45.1 Brief Description of Defined Benefit Scheme:
(a) Leave Encashment - Payable on separation to eligible employees who have accumulated earned
leave and half pay leave. Encashment of accumulated earned Leave is also allowed upto 30 days
once in a calendar year.
(b) Post Retirement Medical benefit - Available to retired employees at any hospital under the Mediclaim
Insurance Policy
(c) Post retirement settlement benefit - Payable to retiring employees for settlement at their declared
home town.
79
(D) =eDtoJrtfU muJt vwhfUth - gql;b
25
JMtuo fUe muJt fuU rtY J;w fuU v bk ;:t muJtrlJ]rt vh Ce =ug >
(E) fUboathe vrhJth ylwttC gtuslt - rlttorh; sbt fuU c=tu muJt mu v]:fU rJfUttkd fUboatrhgt/r=Jkd; fUboatrhgt fuU
fUtlqle JtrhNt fUtu rlttorh; sbt fuU c=tu b v]:fU rJfUttkd fUboatrhgt/r=Jkd; fUboatrhgt fUe muJt-rlJ]rt fUe r;r:
;fU btrmfU Cwd;tl>
(a) CrJg rlrt & fUvle tht CrJg rlrt gtm fUtu bqt Ju;l ;:t bkndtRo Ctt fUt
ni>
12
r;N; ykN=tl r=gt dgt
(A) Wvt=tl & vtt fUboatrhgt fUtu muJt mu rlgtusl vh muJt fuU gufU vqKo JMo fuU rtY 15 r=lt fuU Ju;l fUe =h vh
=ug ni stu fUb mu fUb 5 JMtuo ;:t yrtfU;b 30 JMtuo fUe yJrt fuU rtY rlhk;h muJt =u;u ni> Wvt=tl fUe mkdKlt
fUboathe tht ykr;b btn fuU Ju;l fUe =h vh muJt fuU gufU vqKo JMo mu yrtfU mu yrtfU 30 JMtuo fuU rtY dKlt
fUe st;e ni> fUboatrhgt fUtu =ug Wvt=tl fUe yrtfU;b htrN ` 10 ttF ni>
46.
fUxefUhK, simt rfU vrhCtrM; ylwttC =trgJt fuU vrhug b IOfUboathe ylwttCtOO vh tuFt btlfU -Y Ym-15 (mkNturt;
2005) fuU ;n;T ytJgfU ni &
fU) Gurv; ylwttC =trgJt fuU J;obtl bqg fUt mbJg &
f{.
mk.
gtiht
i.
01
yJfUtN
lfU=efUhK
yit, 2011 fUtu Gurv;

ylwttC =trgJ fUt J;obtl bqg
ii. muJt ttd;
iii. gts ttd;
iv. cebtkrfUfU (lVUt)/ntrlgtp
v. muJt vat; ttd;
vi. mk=t ylwttC
vii. 31 btao, 2012 fUtu =NtoY dY
ylwttC =trgJ fUt J;obtl bqg
(i)+(ii)+(iii)+(iv)-(v)+(vi)
(F) gg
31
btao,
2012
muJtrlJ]rt
vat;T
rarfUmt
ylwttC
` ttF buk
muJtrlJ]rt
vat;T
rlvxtl
ylwttC
=eDtoJrtfU
muJt
vwhfUth
fUboathe
vrhJth
ylwttC
gtuslt
gtud
1151.95
493.40
36.71
4.43
354.75
2041.24
130.18
30.39
1.76
0.23
0.00
162.56
85.38
38.39
2.76
0.34
25.82
152.69
80.27
98.25
(0.14)
(0.08)
21.29
199.59
0.00
0.00
0.00
0.00
0.00
0.00
(169.51)
(27.01)
(4.34)
(0.37)
(64.11)
(265.34)
1278.27
633.42
36.75
4.55
337.75
2290.74
fUtu mbtt JMo fuU rtY ttC YJk ntrl Ft;t fUe rJJhKe b JefUtht dgt &
f{.
gtiht
i.
ii.
iii.
iv.
v.
muJt ttd;
gts ttd;
cebtkrfUfU (lVUt)/ntrl
muJt vat; ttd;
ytgturs; ytr;gt vh
ylwbtrl; r;VUt
vi.
fUboatrhgt fuU vtrhrbfU

;:t ylwttCt fUtu Ctrh; hfUb
(ylwmqae-11)
yJfUtN
lfU=efUhK
muJtrlJ]rt
vat;T
rarfUmt
ylwttC
muJtrlJ]rt
vat;T
rlvxtht
ylwttC
` ttF
=eDtoJrtfU
muJt
vwhfUth
buk
fUboathe
vrhJth
ylwttC
gtuslt
130.18
85.38
80.27
0.00
30.39
38.39
98.25
0.00
1.76
2.76
(0.14)
0.00
0.23
0.34
(0.08)
0.00
0.00
25.82
21.29
0.00
0.00
0.00
0.00
0.00
0.00
295.83
167.03
4.38
0.49
47.11
d) cebtkrfUfU tht vwr fuU ylwmth gntp fUrv; rarfUmt bwtVUer; =h b fUtuRo c=ttJ ln nwRo ni gtukrfU muJtrlJ]rt vat;T rarfUmt ylwttC
gtuslt burzjub vtprtme fuU y;do; yt"trh; ni>
80
(d) Long Term Service Award - Payable in kind for rendering minimum 25 years of service and also on
Superannuation.
(e) Employees Family Benefit Scheme Monthly payment to disabled separated employees/legal
heirs of deceased employees in lieu of prescribed deposit till the date of superannuation of deceased
employees.
(f) Provident Fund : 12% of Basic pay and Dearness allowance contributed to the Provident Fund
Trust by the company.
(g) Gratuity: Payable on separation at the rate of 15 days pay for each completed year of service
to eligible employees who render continuous service for a minimum period of 5 years and upto 30
years. The Gratuity is calculated at the rate of one months wages last drawn by the employee for
every completed year of service in excess of 30 years. The maximum amount of Gratuity payable
to employee is ` 10 lakhs.
46. Disclosures as required under Accounting Standard (AS) 15 (revised 2005) on Employee Benefits in respect
of Defined benefit obligations are:
a) Reconciliation of present value of projected benefit obligations:Sl. Particulars
No.
Leave
Encashment
Postretirement
Medical
Benefit
Postretirement
Settlement
Benefit
(` in lakhs)
Long Term
Service
Award
Employees
Family
Benefit
Scheme
Total
i.
Present value of projected

benefit obligation as at
1st April 2011
1151.95
493.40
36.71
4.43
354.75
2041.24
ii.
Service cost
130.18
30.39
1.76
0.23
0.00
162.56
iii.
Interest cost
85.38
38.39
2.76
0.34
25.82
152.69
iv.
Actuarial (Gain)/Losses
80.27
98.25
(0.14)
(0.08)
21.29
199.59
v.
Post Service cost
0.00
0.00
0.00
0.00
0.00
0.00
vi.
Benefit paid
(169.51)
(27.01)
(4.34)
(0.37)
(64.11)
(265.34)
1278.27
633.42
36.75
4.55
337.75
2290.74
vii. Present value of projected

benefit obligation as on
31st March 2012.
(i)+(ii)+(iii)+(iv)-(v)+(vi)
b)
Expenses recognized in the statement of Profit and Loss Account for the year ended 31st March 2012
(` in lakhs)
Sl. Particulars
No.
Leave
Encashment
Postretirement
Medical
Benefit
Postretirement
Settlement
Benefit
1.76
Long Term
Service
Award
0.23
Employees
Family
Benefit
Scheme
i.
Service cost
130.18
30.39
0.00
ii.
Interest cost
85.38
38.39
2.76
0.34
25.82
iii.
Actuarial (Gain)/ Loss
80.27
98.25
(0.14)
(0.08)
21.29
iv.
v.
Post service cost

Expected return on plan asset
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
vi.
Amount charged to Employees

Remuneration and Benefits
(Schedule -11)
295.83
167.03
4.38
0.49
47.11
c) There is no change in assumed medical inflation rate as confirmed by actuary since the post retirement
medical benefit scheme is covered by Mediclaim Policy.
81
(D)
cebtkrfUfU vqKo"thK
f{U.
mk.
JKol
31btao, 2012
(i)
(ii)
(iii)
Aqx =h
Ju;l ;:t bs=qhe bu J]r fUe =h
b]gw =h ;:t gtnhK
8.60%
5.00%
Cth;eg seJl cebt fUt rlra; b]gw =h (1994-96) ykr;b
(iv)
bwtVUer;, JrhX;t v=tulr; ;:t yg mkcr"; vntwytuk fUtu tufUh CrJg fuU Ju;l fUe J]r fUt tfUtl cebtkrfUfU bqgtkfUl buk btlt
dgt >
47
vwxefUhK/mbtttl ;:t vtrhKtrbfU mbtgtusl, gr= fUtuRo ntu, fuU hn;u nwY Jmqtegtug ;:t yrd{bt fuU ;n;T =ul=tht, tul=tht,
=tJtyt fuU y;do; =Ntogt dgt yrtNuM yrtNuMt b mbtrn; ni>
48.
fkUvle yrtrlgb, 1956 fUe ttht 441-Y fuU y;do; Cwd;ug WvfUh nu;w fkUvle lu tJttl ln cltgt ni, aqrfU ttdq ntulu fUe
r;r: ;:t ylwgwU rfUY stlu Jttu rlra; =h mu mkckrt; yrtmqalt fUe stlfUthe yc;fU ln ni>
49.
rJteg JMo fuU =tihtl rl=uNfU ciXfU NwfU
` 15,000/- ( .J. ` Nwg) Cwd;tl
rfUgt dgt ni >

Jt;u htsu mt=
ml=e tuFtvtt
htt FzutJtt
mtSu=th
m=g;t f{ . 079628
Y. ve. Nbto
fuU. bwhte"hl
fUkvle mraJ
:tl & rCttRo

r;r: & 30.06.2012
82
ce. ce rmkn
rl=uNf
Yxtule atfUtu
ck" rl=uNf
d)
Assumption considered by Actuary
Sl.
No.
Description
As at 31st March 2012
i.
ii.
iii.
Discount Rate
Rate of Escalation in Salaries & Wages
Mortality and withdrawal
8.60%
5.00%
Indian Assured Lives Mortality (1994-96) ultimate
iv.
The estimate of future salary increase is considered in actuarial valuation taking account of inflation,
seniority promotion and other relevant factors.
47. Balances shown under creditors, debtors, claims under recoverable and advances include balances subject
to confirmation/ reconciliation and consequential adjustment if any.
48. The Company has not made provision for Cess payable under section 441A of the Companies Act, 1956 as
the notification as regards the date of applicability and the exact rate to be applied has not yet come to
notice.
49. Director sitting fees of ` 15000/- (PY ` Nil) has been paid during the financial year.
For RAJENDRA PRASAD

RAHUL KHANDELWAL
Partner
Place : Bhilai
Date : 30.06.2012

Director
Managing Director
(Accounts)
83

Ferro Scrap Nigam Limited Annual Report 2011-12

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VuUhtu f{i v rldb rtrbxuz

(Cth; mhfUth fUt Wvf{ b)

Ferro Scrap Nigam Limited

J JtrMofU r;Ju=l 2011-2012

Comments of Comptroller and

Statement of Profit and Loss

Cash Flow Statement

e Ym. fuU rtvtXe

Chairman (w.e.f. 19.04.2012) and

Shri Antony Chacko

ckt rl=uNfU - (22.8.2012 ;fU)

Managing Director (upto 22.8.2012)

Shri L. Siddhartha Singh

e se. Ym. awD

(for the period 13.02.2012 to 12.8.2012)

rl=uNfU fUt r;Ju=l

ytvfuU rl=uNfUdt fUtu r=lktfU 31.03.2012 fUtu mbtt nwY JMo

Your Directors have the pleasure in presenting the

The Company, despite

fUvle, Ya Ro me, htae RfUtRo buk

The technological development/modernization in steel

The total earning of the company was ` 17,491 lakhs

fUvle fUt fwUt Wvtsol d; JMo fuU f{UbN& ` 16,853 ttF

The profitability of the

mtbtg ythrGr;gt &

Pursuant to section 205 (2A) of the Companies

ytvfuU rl=uNfUdK JMo 2011-12 fuU rtY ` 40 ttF fUe hfUb

Your Directors are pleased to recommend a dividend

rJ=uNe bwt ysol ;:t rldob

Foreign exchange earning & outgo during the year is

Wsto mkhGK ;:t titurdfUe yJNtuMK YJk lJ-]sl

ENERGY CONSERVATION & TECHNOLOGY

The conservation of energy has been one of the key

fkUvle (rl=uNfU bzt fuU r;Ju=l buk gtiht fUt fUxefUht)

Information as required under provisions of Section

titurdfUe yJNtuMK YJk lJ_]sl

TECHNOLOGY ABSORPTION AND INNOVATION

titurdfUe fuU yJNtuMt fuU vrhug buk gtiht &

PARTICULARS WITH RESPECT

(fU) rJfUtm J]r ;:t yrCgktrtfU

a) DEVELOPMENT & ENGINEERING

1. Fabrication & erection of Magnetic Separator at

2. Second & final phase of capacity enhancement

rCttRo buk fUb Ab;t fUt awJfUeg muvhuxh fUt ViUrc{fuUNl

rCttRo buk awcfUeg muvhuxh fUt ViUrc{fuUNl ;:t :tvl

3. Fabrication, erection and commissioning of small

(F) titurdfUe yJNtuMt YJk lJ-t]sl &

The following technologies are being used :

rlbrtrF; titurdrfUgtuk fUt gtud rfUgt stYdt &

1. Enrichment of Fe in the steel scrap.

c) RESEARCH & DEVELOPMENT ACTIVITIES:

(d) ylwmk"tl J rJfUtm dr;rJr"gt &

R&D lab has been set-up at Corporate Office, Bhilai

f{iUv J tid buk YfU Ro y;Jo;w fUt vheGt ;:t rJtuNK

STATUS OF SCRAP RECOVERY CONTRACTS

f{i v rhfUJhe mkrJ=tytuk fUe r:r;

mut fuU rllrtrF; mut mkgkttuk fuU mt: =eDtoJr"fU ylwckD

Long Term Agreements with the following SAIL

MOU between SAIL and FSNL, for renewal of Long

mu 31.03.2013 fUe yJr" fuU rtY =eDtoJr"fU

2. Visakhapatnam Steel Plant, Visakhapatnam

Rvt; mkgkt , rJNtFtvxTxKb